|   | £ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934         |
|--------|--------|--------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                   |
| OR     |
|   |   |                                                                                                   |
|   | S      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934                  |
|   |   |                                                                                                   |
|   |   | FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010                                                            |
|   |   |                                                                                                   |
| OR     |
|   |   |                                                                                                   |
|   | £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934              |
|   |   |                                                                                                   |
|   |   | FOR THE TRANSITION PERIOD FROM _______ TO_______                                                       |
|   |   |                                                                                                   |
| OR     |
|   |   |                                                                                                   |
|   | £ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES EXCHANGE ACT OF 1934 |
|   |   |                                                                                                   |
|   |   | DATE OF EVENT REQUIRING THIS SHELL COMPANY REPORT ...................          |
|   |   |                                                                                                   |
|   |   | FOR THE TRANSACTION PERIOD FORM ____________ TO __________                                             |

| Title of Each Class                                                                        | Name of Each ExchangeOn Which Registered |
|--------------------------------------------------------------------------------------------|------------------------------------------|
|                                                                                       |                                     |
| American Depositary Shares, each representing 100 H Shares of par value RMB 1.00 per share | New York Stock Exchange, Inc.            |
|                                                                                       |                                     |
| H Shares of par value RMB 1.00 per share                                                   | New York Stock Exchange, Inc.*           |

----

| H Shares, par value RMB 1.00 per share | 16,780,488,000 |
|----------------------------------------|----------------|
| A Shares, par value RMB 1.00 per share | 69,922,039,774 |

|   | Yes X |   | No__ |   |
|--------|-------|--------|------|--------|

|   | Yes __ |   | No X |   |
|--------|--------|--------|------|--------|

|   | Yes X |   | No__ |   |
|--------|-------|--------|------|--------|

|   | Large accelerated filer X |   | Accelerated filer __ |   | Non-accelerated filer __ |   |
|--------|---------------------------|--------|----------------------|--------|--------------------------|--------|

|   | U.S. GAAP ___ |   | International Financial Reporting Standards X |   | Other ___ |   |
|--------|---------------|--------|-----------------------------------------------|--------|-----------|--------|
|   |          |   | as issued by the International Accounting     |   |      |   |
|   |          |   | Standards Board                               |   |      |   |

|   | Item 17__ |   | Item 18__ |   |
|--------|-----------|--------|-----------|--------|

|   | Yes __ |   | No X |   |
|--------|--------|--------|------|--------|

----

|      | Page                                                                         |
|-----------|------------------------------------------------------------------------------|
| ITEM 1.   | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS                        | 6 |
| ITEM 2.   | OFFER STATISTICS AND EXPECTED TIMETABLE                                      | 6 |
| ITEM 3.   | KEY INFORMATION                                                              | 6 |
|      | A.                                                                           | SELECTED FINANCIAL DATA | 6 |
|      | B.                                                                           | CAPITALIZATION AND INDEBTEDNESS | 8 |
|      | C.                                                                           | REASONS FOR THE OFFER AND USE OF PROCEEDS | 8 |
|      | D.                                                                           | RISK FACTORS | 8 |
| ITEM 4.   | INFORMATION ON THE COMPANY                                                   | 13 |
|      | A.                                                                           | HISTORY AND DEVELOPMENT OF THE COMPANY | 13 |
|      | B.                                                                           | BUSINESS OVERVIEW | 14 |
|      | C.                                                                           | ORGANIZATIONAL STRUCTURE | 29 |
|      | D.                                                                           | PROPERTY, PLANT AND EQUIPMENT | 29 |
| ITEM 4A.  | UNRESOLVED STAFF COMMENTS                                                    | 30 |
| ITEM 5.   | OPERATING AND FINANCIAL REVIEW AND PROSPECTS                                 | 31 |
|      | A.                                                                           | GENERAL | 31 |
|      | B.                                                                           | CONSOLIDATED RESULTS OF OPERATIONS | 33 |
|      | C.                                                                           | DISCUSSIONS ON RESULTS OF SEGMENT OPERATIONS | 39 |
|      | D.                                                                           | LIQUIDITY AND CAPITAL RESOURCES | 47 |
| ITEM 6.   | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                                   | 49 |
|      | A.                                                                           | DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT | 49 |
|      | B.                                                                           | COMPENSATION | 56 |
|      | C.                                                                           | BOARD PRACTICE | 58 |
|      | D.                                                                           | EMPLOYEES | 59 |
|      | E.                                                                           | SHARE OWNERSHIP | 59 |
| ITEM 7.   | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                            | 60 |
|      | A.                                                                           | MAJOR SHAREHOLDERS | 60 |
|      | B.                                                                           | RELATED PARTY TRANSACTIONS | 60 |
|      | C.                                                                           | INTERESTS OF EXPERTS AND COUNSEL | 61 |
| ITEM 8.   | FINANCIAL INFORMATION                                                        | 61 |
|      | A.                                                                           | CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION | 61 |
|      | B.                                                                           | SIGNIFICANT CHANGES | 61 |
| ITEM 9.   | THE OFFER AND LISTING                                                        | 61 |
|      | A.                                                                           | OFFER AND LISTING DETAILS | 61 |
| ITEM 10.  | ADDITIONAL INFORMATION                                                       | 62 |
|      | A.                                                                           | SHARE CAPITAL | 62 |
|      | B.                                                                           | MEMORANDUM AND ARTICLES OF ASSOCIATION | 62 |
|      | C.                                                                           | MATERIAL CONTRACTS | 70 |
|      | D.                                                                           | EXCHANGE CONTROLS | 70 |
|      | E.                                                                           | TAXATION | 71 |
|      | F.                                                                           | DIVIDENDS AND PAYING AGENTS | 74 |
|      | G.                                                                           | STATEMENT BY EXPERTS | 74 |
|      | H.                                                                           | DOCUMENTS ON DISPLAY | 74 |
|      | I.                                                                           | SUBSIDIARY INFORMATION | 74 |
| ITEM 11.  | QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK                   | 74 |
| ITEM 12.  | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | 78 |
| ITEM 13.  | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              | 79 |
| ITEM 14.  | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 79 |
|      | A.                                                                           | MATERIAL MODIFICATIONS TO THE RIGHTS TO SECURITIES HOLDERS | 79 |
|      | B.                                                                           | USE OF PROCEEDS | 79 |
| ITEM 15.  | CONTROLS AND PROCEDURES                                                      | 79 |
| ITEM 16.  | RESERVED                                                                     | 81 |
| ITEM 16A. |  AUDIT COMMITTEE FINANCIAL EXPERT                                       | 81 |

----

| ITEM 16B. | CODE OF ETHICS                                                                                                             | 81 |
|-----------|----------------------------------------------------------------------------------------------------------------------------|----|
| ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                                     | 81 |
| ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                                                                 | 82 |
| ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS                                                     | 82 |
| ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT                                                                         | 82 |
| ITEM 16G. | COMPARISON OF NEW YORK STOCK EXCHANGE CORPORATE GOVERNANCE RULES AND CHINA CORPORATE GOVERNANCE RULES FOR LISTED COMPANIES | 82 |
| ITEM 17.  | FINANCIAL STATEMENTS                                                                                                       | 84 |
| ITEM 18.  | FINANCIAL STATEMENTS                                                                                                       | 85 |
| ITEM 19.  | EXHIBITS                                                                                                                   | 85 |

----

|   | · | "Sinopec Corp.", "we", "our" and "us" are to China Petroleum & Chemical Corporation, a PRC joint stock limited company, and its subsidiaries;                           |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                        |
|   | · | "Sinopec Group Company" are to our controlling shareholder, China Petrochemical Corporation, a PRC limited liability company;                                               |
|   |   |                                                                                                                                                                        |
|   | · | "Sinopec Group" are to the Sinopec Group Company and its subsidiaries other than Sinopec Corp. and its subsidiaries;                                                        |
|   |   |                                                                                                                                                                        |
|   | · | "provinces" are to provinces and to provincial-level autonomous regions and municipalities in China which are directly under the supervision of the central PRC government; |
|   |   |                                                                                                                                                                        |
|   | · | "RMB" are to Renminbi, the currency of the PRC;                                                                                                                             |
|   |   |                                                                                                                                                                        |
|   | · | "HK$" are to Hong Kong dollar, the currency of the Hong Kong Special Administrative Region of the PRC; and                                                                  |
|   |   |                                                                                                                                                                        |
|   | · | "US$" are to US dollars, the currency of the United States of America.                                                                                                      |

|   | · | "billion" are to a thousand million.                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                            |
|   | · | "BOE" are to barrels-of-oil equivalent; natural gas is converted at a ratio of 6,000 cubic feet of natural gas to one BOE.                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                            |
|   | · | "primary distillation capacity" are to the crude oil throughput capacity of a refinery's crude oil distillation units, calculated by estimating the number of days in a year that such crude oil distillation units are expected to operate, excluding downtime for regular maintenance, and multiplying that number by the amount equal to the units' optimal daily crude oil throughput.      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                            |
|   | · | "rated capacity" are to the output capacity of a given production unit or, where appropriate, the throughput capacity, calculated by estimating the number of days in a year that such production unit is expected to operate, excluding downtime for regular maintenance, and multiplying that number by an amount equal to the unit's optimal daily output or throughput, as the case may be. |

----

|          |   | Noon Buying Rate(1) |   |
|---------------|--------|---------------------|--------|
| Period        |   | End                 |   |   | Average(2) |   |   | High |   |   | Low |   |
|          |   | (RMB per US$1.00)   |   |
| 2006          |   |                | 7.8041 |   |   |   | 7.9723 |   |   |   | 8.0702 |   |   |   | 7.9723 |   |
| 2007          |   |                | 7.2946 |   |   |   | 7.5806 |   |   |   | 7.8127 |   |   |   | 7.2946 |   |
| 2008          |   |                | 6.8225 |   |   |   | 6.9193 |   |   |   | 7.2946 |   |   |   | 6.7800 |   |
| 2009          |   |                | 6.8259 |   |   |   | 6.8307 |   |   |   | 6.8470 |   |   |   | 6.8176 |   |
| 2010          |   |                | 6.6000 |   |   |   | 6.7696 |   |   |   | 6.8330 |   |   |   | 6.6000 |   |
| October 2010  |   |                | 6.6707 |   |   |   | 6.6675 |   |   |   | 6.6912 |   |   |   | 6.6397 |   |
| November 2010 |   |                | 6.6670 |   |   |   | 6.6537 |   |   |   | 6.6906 |   |   |   | 6.6233 |   |
| December 2010 |   |                | 6.6000 |   |   |   | 6.6497 |   |   |   | 6.6745 |   |   |   | 6.6000 |   |
| January 2011  |   |                | 6.6017 |   |   |   | 6.5964 |   |   |   | 6.6364 |   |   |   | 6.5809 |   |
| February 2011 |   |                | 6.5713 |   |   |   | 6.5761 |   |   |   | 6.5965 |   |   |   | 6.5520 |   |
| March 2011    |   |                | 6.5483 |   |   |   | 6.5645 |   |   |   | 6.5743 |   |   |   | 6.5483 |   |

| (1) | For the period prior to January 1, 2009, the exchange rates reflect the noon buying rates certified by the Federal Reserve Bank of New York. For the period after January 1, 2009, the exchange rates reflect those set forth in the H.10 statistical release of the U.S. Federal Reserve Board. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Annual averages are determined by averaging the rates on the last business day of each month during the relevant period. Monthly averages are calculated using the average of the daily rates during the relevant period.                                                                        |

----

|   | · | amount and nature of future exploration and development,                                                                                                            |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | future prices of and demand for our products,                                                                                                                       |
|   | · | future earnings and cash flow,                                                                                                                                      |
|   | · | development projects and drilling prospects,                                                                                                                        |
|   | · | future plans and capital expenditures,                                                                                                                              |
|   | · | estimates of proved oil and gas reserves,                                                                                                                           |
|   | · | exploration prospects and reserves potential,                                                                                                                       |
|   | · | expansion and other development trends of the petroleum and petrochemical industry,                                                                                 |
|   | · | production forecasts of oil and gas,                                                                                                                                |
|   | · | expected production or processing capacities, including expected rated capacities and primary distillation capacities, of units or facilities not yet in operation, |
|   | · | expansion and growth of our business and operations, and                                                                                                            |
|   | · | our prospective operational and financial information.                                                                                                              |

|   | · | fluctuations in crude oil prices,                                     |
|--------|--------|-----------------------------------------------------------------------|
|   | · | fluctuations in prices of our products,                               |
|   | · | failures or delays in achieving production from development projects, |
|   | · | potential acquisitions and other business opportunities,              |
|   | · | general economic, market and business conditions, and                 |
|   | · | other risks and factors beyond our control.                           |

----

| ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS |
|---------|-------------------------------------------------------|

| ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
|---------|-----------------------------------------|

| ITEM 3. | KEY INFORMATION |
|---------|-----------------|
|    |            |
|    | A.              | SELECTED FINANCIAL DATA |

----

|                                                          |   | Year Ended December 31,                              |      |
|---------------------------------------------------------------|--------|------------------------------------------------------|-----------|
|                                                          |   | 2006                                                 |      |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2010 |   |
|                                                          |   | (RMB in millions, except per share and per ADS data) |      |
| Consolidated Income Statement Data(1):                        |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenues                                            |   |                                                 | 1,056,363 |   |   |   | 1,200,997 |   |   |   | 1,444,291 |   |   |   | 1,345,052 |   |   |   | 1,913,182 |   |
| Other income                                                  |   |                                                 | 5,225     |   |   |   | 4,863 |   |   |   | 50,857 |   |   |   | - |   |   |   | - |   |
| Operating expenses                                            |   |                                                 | (980,343  | ) |   |   | (1,118,540 | ) |   |   | (1,456,567 | ) |   |   | (1,254,353 | ) |   |   | (1,808,178 | ) |
| Operating income                                              |   |                                                 | 81,245    |   |   |   | 87,320 |   |   |   | 38,581 |   |   |   | 90,699 |   |   |   | 105,004 |   |
| Earnings before income tax                                    |   |                                                 | 79,068    |   |   |   | 84,246 |   |   |   | 33,442 |   |   |   | 86,604 |   |   |   | 103,693 |   |
| Tax expense                                                   |   |                                                 | (23,865   | ) |   |   | (25,659 | ) |   |   | (3,624 | ) |   |   | (19,599 | ) |   |   | (25,689 | ) |
| Net income attributable to equity shareholders of the Company |   |                                                 | 53,771    |   |   |   | 56,168 |   |   |   | 31,199 |   |   |   | 63,147 |   |   |   | 71,800 |   |
| Basic earnings per share(2)                                   |   |                                                 | 0.62      |   |   |   | 0.65 |   |   |   | 0.36 |   |   |   | 0.73 |   |   |   | 0.83 |   |
| Basic earnings per ADS(2)                                     |   |                                                 | 62.02     |   |   |   | 64.78 |   |   |   | 35.98 |   |   |   | 72.83 |   |   |   | 82.81 |   |
| Diluted earnins per share(2)                                  |   |                                                 | 0.62      |   |   |   | 0.65 |   |   |   | 0.32 |   |   |   | 0.72 |   |   |   | 0.82 |   |
| Diluted earnings per ADS(2)                                   |   |                                                 | 62.02     |   |   |   | 64.78 |   |   |   | 31.92 |   |   |   | 72.36 |   |   |   | 82.03 |   |
| Cash dividends declared per share                             |   |                                                 | 0.130     |   |   |   | 0.160 |   |   |   | 0.145 |   |   |   | 0.160 |   |   |   | 0.190 |   |
| Segment results                                               |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration and production                                    |   |                                                 | 63,357    |   |   |   | 49,910 |   |   |   | 78,649 |   |   |   | 23,894 |   |   |   | 47,149 |   |
| Refining                                                      |   |                                                 | (26,450   | ) |   |   | (10,197 | ) |   |   | (66,640 | ) |   |   | 27,508 |   |   |   | 15,855 |   |
| Marketing and distribution                                    |   |                                                 | 30,361    |   |   |   | 35,904 |   |   |   | 38,519 |   |   |   | 30,300 |   |   |   | 30,760 |   |
| Chemicals                                                     |   |                                                 | 14,924    |   |   |   | 13,306 |   |   |   | (12,950 | ) |   |   | 13,805 |   |   |   | 15,037 |   |
| Corporate and others                                          |   |                                                 | (1,532    | ) |   |   | (1,483 | ) |   |   | (2,167 | ) |   |   | (2,205 | ) |   |   | (2,342 | ) |
| Elimination                                                   |   |                                                 | 585       |   |   |   | (120 | ) |   |   | 3,170 |   |   |   | (2,603 | ) |   |   | (1,455 | ) |
| Operating income                                              |   |                                                 | 81,245    |   |   |   | 87,320 |   |   |   | 38,581 |   |   |   | 90,699 |   |   |   | 105,004 |   |

|                                                                                                                    |   | As of December 31, |    |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                                                    |   | 2006               |    |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2010 |   |
|                                                                                                                    |   | (RMB in millions)  |    |
| Consolidated Balance Sheet Data(1):                                                                                     |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                               |   |               | 7,188   |   |   |   | 8,618 |   |   |   | 7,040 |   |   |   | 8,782 |   |   |   | 17,008 |   |
| Total current assets                                                                                                    |   |               | 148,076 |   |   |   | 187,685 |   |   |   | 165,525 |   |   |   | 201,479 |   |   |   | 260,229 |   |
| Total non-current assets                                                                                                |   |               | 490,499 |   |   |   | 579,953 |   |   |   | 634,821 |   |   |   | 696,784 |   |   |   | 734,925 |   |
| Total assets                                                                                                            |   |               | 638,575 |   |   |   | 767,638 |   |   |   | 800,346 |   |   |   | 898,263 |   |   |   | 995,154 |   |
| Short-term debts and loans from Sinopec Group Company and its affiliates (including current portion of long-term debts) |   |               | 70,952  |   |   |   | 70,491 |   |   |   | 114,208 |   |   |   | 75,216 |   |   |   | 35,828 |   |
| Long-term debts and loans from Sinopec Group Company and its affiliates (excluding current portion of long-term debts)  |   |               | 118,406 |   |   |   | 142,568 |   |   |   | 135,720 |   |   |   | 152,725 |   |   |   | 174,075 |   |
| Equity attributable to equity shareholders of the Company                                                               |   |               | 264,903 |   |   |   | 308,133 |   |   |   | 329,783 |   |   |   | 378,940 |   |   |   | 419,047 |   |
| Capital employed(3)                                                                                                     |   |               | 469,391 |   |   |   | 538,095 |   |   |   | 594,876 |   |   |   | 623,975 |   |   |   | 643,263 |   |

|                                                   |   | Year Ended December 31 |    |
|--------------------------------------------------------|--------|------------------------|---------|
|                                                   |   | 2006                   |    |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2010 |   |
|                                                   |   | (RMB in millions)      |    |
| Other Financial Data(1):                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash generated from operating activities           |   |                   | 99,359  |   |   |   | 124,030 |   |   |   | 86,443 |   |   |   | 165,513 |   |   |   | 170,333 |   |
| Net cash (used in)/generated from financing activities |   |                   | (17,543 | ) |   |   | (4,004 | ) |   |   | 20,347 |   |   |   | (46,411 | ) |   |   | (56,294 | ) |
| Net cash used in investing activities                  |   |                   | (90,082 | ) |   |   | (118,504 | ) |   |   | (108,288 | ) |   |   | (117,355 | ) |   |   | (105,788 | ) |
| Capital expenditure                                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration and production                             |   |                   | 42,348  |   |   |   | 60,491 |   |   |   | 60,059 |   |   |   | 54,272 |   |   |   | 52,680 |   |
| Refining                                               |   |                   | 22,815  |   |   |   | 22,964 |   |   |   | 12,793 |   |   |   | 15,468 |   |   |   | 20,015 |   |
| Marketing and distribution                             |   |                   | 13,475  |   |   |   | 14,671 |   |   |   | 14,796 |   |   |   | 16,283 |   |   |   | 26,168 |   |
| Chemicals                                              |   |                   | 12,629  |   |   |   | 16,184 |   |   |   | 20,622 |   |   |   | 25,207 |   |   |   | 12,894 |   |

----

| Corporate and others |   |   | 2,170  |   |   |   | 3,289   |   |   |   | 2,393   |   |   |   | 1,505   |   |   |   | 1,894   |   |
|----------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| Total                |   |   | 93,437 |   |   |   | 117,599 |   |   |   | 110,663 |   |   |   | 112,735 |   |   |   | 113,651 |   |

| (1) | The acquisitions of equity interest of Sinopec Hainan and Oil Production Plants in 2006, the acquisition of equity interest of the Refining Plants in 2007, the acquisition of the Acquired Group in 2009, and the acquisition of 55% equity interest of SSI in 2010 from Sinopec Group Company are treated as “combination of entities under common control” which are accounted in a manner similar to a pooling-of-interests.  Accordingly, the acquired assets and liabilities have been accounted for at historical cost and the consolidated financial statements for periods prior to the combinations have been restated to include the financial condition and results of operation of these acquired companies on a combined basis.  The considerations for these acquisitions were treated as equity transactions. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Basic earnings per share have been computed by dividing net income attributable to equity shareholders of our company by the weighted average number of shares in issue. Basic and diluted earnings per ADS have been computed as if all of our issued or potential ordinary shares, including domestic shares and H shares, are represented by ADSs during each of the years presented. Each ADS represents 100 shares.                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (3) | Capital employed is derived by the sum of short-term debts, long-term debts, loans from Sinopec Group Company and its affiliates and total equity less cash and cash equivalents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

|   | B. | CAPITALIZATION AND INDEBTEDNESS |
|--------|----|---------------------------------|

|   | C. | REASONS FOR THE OFFER AND USE OF PROCEEDS |
|--------|----|-------------------------------------------|

|   | D. | RISK FACTORS |
|--------|----|--------------|

----

|   | · | the quality and quantity of technical and economic data;        |
|--------|--------|-----------------------------------------------------------------|
|   |   |                                                            |
|   | · | the prevailing oil and gas prices applicable to our production; |
|   |   |                                                            |
|   | · | the production performance of the reservoirs; and               |
|   |   |                                                            |
|   | · | extensive engineering judgments.                                |

----

----

|   | · | the imposition of fees for the discharge of waste substances;                                                                                                         |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                  |
|   | · | the levy of fines and payments for damages for serious environmental offenses; and                                                                                    |
|   |   |                                                                                                                                                                  |
|   | · | the government, at its discretion, to close any facility which fails to comply with orders and require it to correct or stop operations causing environmental damage. |

----

|   | · | import of crude oil and other materials;                                           |
|--------|--------|------------------------------------------------------------------------------------|
|   |   |                                                                               |
|   | · | debt service on foreign currency-denominated debt;                                 |
|   |   |                                                                               |
|   | · | purchases of imported equipment;                                                   |
|   |   |                                                                               |
|   | · | payment of the principals and interests of bonds issued overseas; and              |
|   |   |                                                                               |
|   | · | payment of any cash dividends declared in respect of the H shares (including ADS). |

----

| ITEM 4. | INFORMATION ON THE COMPANY |
|---------|----------------------------|
|    |                       |
|    | A.                         | HISTORY AND DEVELOPMENT OF THE COMPANY |

|   | · | exploration for, development, production and marketing of crude oil and natural gas;                                                                                         |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                         |
|   | · | refining of crude oil and marketing and distribution of refined petroleum products, including transportation, storage, trading, import and export of petroleum products; and |
|   |   |                                                                                                                                                                         |
|   | · | production and sales of petrochemical products.                                                                                                                              |

|   | · | exploring and developing oil and gas reserves overseas;                                                  |
|--------|--------|----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                     |
|   | · | operating certain petrochemical facilities and small capacity refineries;                                |
|   |   |                                                                                                     |
|   | · | providing geophysical exploration, and well drilling, survey, logging and downhole operational services; |
|   |   |                                                                                                     |
|   | · | manufacturing production equipment and providing equipment maintenance services;                         |
|   |   |                                                                                                     |
|   | · | providing construction services;                                                                         |
|   |   |                                                                                                     |
|   | · | providing utilities, such as electricity and water; and                                                  |
|   |   |                                                                                                     |
|   | · | providing other operational services including transportation services.                                  |

----

|   | B. | BUSINESS OVERVIEW |
|--------|----|-------------------|

----

|                      |   | As of December 31,       |   |
|---------------------------|--------|--------------------------|--------|
|                      |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
| Crude Oil Proved Reserves |   | (in millions of barrels) |   |
|                      |   |                     |   |   |   |   |   |   |   |
| Developed                 |   |                     |   |   |   |   |   |   |   |
| China                     |   |                     |   |   |   |   |   |   |   |
| Shengli                   |   |                     | 1,964  |   |   |   | 2,009 |   |   |   | 1,963 |   |
| Others                    |   |                     | 487    |   |   |   | 504 |   |   |   | 519 |   |
| Africa(1)                 |   |                     | 87     |   |   |   | 76 |   |   |   | 72 |   |
| Total Developed           |   |                     | 2,538  |   |   |   | 2,589 |   |   |   | 2,554 |   |
| Undeveloped               |   |                     |   |   |   |   |   |   |   |   |   |   |
| China                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Shengli                   |   |                     | 187    |   |   |   | 114 |   |   |   | 131 |   |
| Others                    |   |                     | 203    |   |   |   | 193 |   |   |   | 180 |   |
| Africa(1)                 |   |                     | 33     |   |   |   | 23 |   |   |   | 23 |   |
| Total Undeveloped         |   |                     | 423    |   |   |   | 330 |   |   |   | 334 |   |
| Total Proved Reserves     |   |                     | 2,961  |   |   |   | 2,919 |   |   |   | 2,888 |   |

|                        |   | As of December 31,          |   |
|-----------------------------|--------|-----------------------------|--------|
|                        |   | 2008                        |   |   | 2009 |   |   | 2010 |   |
| Natural Gas Proved Reserves |   | (in billions of cubic feet) |   |
|                        |   |                        |   |   |   |   |   |   |   |   |   |   |

----

|                  |   |   |   |   |   |   |   |   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Developed             |   |   |   |   |   |   |   |   |   |
| China                 |   |   |   |   |   |   |   |   |   |
| Puguang               |   |   | 0      |   |   |   | 0      |   |   |   | 2,804 |   |
| Others                |   |   | 1,571  |   |   |   | 1,727  |   |   |   | 1,667 |   |
| Africa(1)             |   |   | 0      |   |   |   | 0      |   |   |   | 0 |   |
| Total Developed       |   |   | 1,571  |   |   |   | 1727   |   |   |   | 4,471 |   |
| Undeveloped           |   |   |   |   |   |   |   |   |   |   |   |   |
| China                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Puguang               |   |   | 4,001  |   |   |   | 3,926  |   |   |   | 978 |   |
| Others                |   |   | 1,387  |   |   |   | 1,086  |   |   |   | 998 |   |
| Africa(1)             |   |   | 0      |   |   |   | 0      |   |   |   | 0 |   |
| Total Undeveloped     |   |   | 5,388  |   |   |   | 5,012  |   |   |   | 1,976 |   |
| Total Proved Reserves |   |   | 6,959  |   |   |   | 6,739  |   |   |   | 6,447 |   |

| (1) |  In 2010, we acquired from Sinopec Group Company 55% equity interest of SSI, which owns 50% mineral interest in Anglo Block 18.  Accordingly, the historical information for 2008 and 2009 has been restated to include the information of SSI.  The proved reserves amount in Africa is the net reserves amount of SSI after deducting the government’s amount-sharing. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | Year Ended December 31,         |   |
|------------------------------------|--------|---------------------------------|--------|
|                               |   | 2008                            |   |   | 2009 |   |   | 2010 |   |
|                               |   | (in thousands of barrels daily) |   |
| Average Daily Crude Oil Production |   |                            |   |   |   |   |   |   |   |
| China                              |   |                            |   |   |   |   |   |   |   |
| Shengli                            |   |                            | 538    |   |   |   | 541 |   |   |   | 532 |   |
| Others(1)                          |   |                            | 273    |   |   |   | 284 |   |   |   | 296 |   |
| Africa(2)                          |   |                            | 69     |   |   |   | 73 |   |   |   | 70 |   |
| Total Crude Oil Production         |   |                            | 880    |   |   |   | 898 |   |   |   | 898 |   |

|                                 |   | Year Ended December 31,           |   |
|--------------------------------------|--------|-----------------------------------|--------|
|                                 |   | 2008                              |   |   | 2009 |   |   | 2010 |   |
|                                 |   | (in millions of cubic feet daily) |   |
| Average Daily Natural Gas Production |   |                              |   |   |   |   |   |   |   |
| China                                |   |                              |   |   |   |   |   |   |   |
| Puguang                              |   |                              | 0      |   |   |   | 10 |   |   |   | 401 |   |
| Others(1)                            |   |                              | 801    |   |   |   | 809 |   |   |   | 808 |   |
| Africa(2)                            |   |                              | 0      |   |   |   | 0 |   |   |   | 0 |   |
| Total Natural Gas Production         |   |                              | 801    |   |   |   | 819 |   |   |   | 1,209 |   |

|                                     |   | Weighted Average |     |   | China  |   |     | Africa(1) |   |
|------------------------------------------|--------|------------------|----------|--------|--------|--------|----------|-----------|--------|
|                                     |   | (RMB)            |     |
| For the year ended December 31, 2010     |   |             |     |   |   |   |     |      |   |
| Average petroleum lifting cost per BOE   |   |             | 94.87    |   |   |   | 97.48    |      |   |   | 54.34 |   |
| Average realized sales price             |   |             |     |   |   |   |     |      |   |   |   |   |
| Per barrel of crude oil                  |   |             | 479.77   |   |   |   | 475.37   |      |   |   | 517.21 |   |
| Per thousand cubic meters of natural gas |   |             | 1,173.92 |   |   |   | 1,173.92 |      |   |   | - |   |
| For the year ended December 31, 2009     |   |             |     |   |   |   |     |      |   |   |   |   |
| Average petroleum lifting cost per BOE   |   |             | 87.42    |   |   |   | 90.51    |      |   |   | 44.41 |   |
| Average realized sales price             |   |             |     |   |   |   |     |      |   |   |   |   |
| Per barrel of crude oil                  |   |             | 347.13   |   |   |   | 339.36   |      |   |   | 424.48 |   |
| Per thousand cubic meters of natural gas |   |             | 959.04   |   |   |   | 959.04   |      |   |   | - |   |
| For the year ended December 31, 2008     |   |             |     |   |   |   |     |      |   |   |   |   |
| Average petroleum lifting cost per BOE   |   |             | 85.68    |   |   |   | 88.80    |      |   |   | 59.10 |   |
| Average realized sales price             |   |             |     |   |   |   |     |      |   |   |   |   |
| Per barrel of crude oil                  |   |             | 607.31   |   |   |   | 601.22   |      |   |   | 659.72 |   |
| Per thousand cubic meters of natural gas |   |             | 941.47   |   |   |   | 941.47   |      |   |   | - |   |

----

|                                 |   | Total  |   |   | China   |   |   | Africa |   |
|--------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|--------|
|                                 |   |   |   |   | Shengli |   |   | Others |   |   |   |   |
| For the year ended December 31, 2010 |   |   |   |   |    |   |   |   |   |   |   |   |
| Exploratory                          |   |   |   |   |    |   |   |   |   |   |   |   |
| Productive                           |   |   | 319    |   |    |   | 231    |   |   |   | 88 |   |   |   | 0 |   |
| Dry                                  |   |   | 390    |   |    |   | 107    |   |   |   | 283 |   |   |   | 0 |   |
| Development                          |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Productive (Oil)                     |   |   | 3,206  |   |    |   | 1,777  |   |   |   | 1,425 |   |   |   | 4 |   |
| Dry (Oil)                            |   |   | 25     |   |    |   | 4      |   |   |   | 21 |   |   |   | 0 |   |
| For the year ended December 31, 2009 |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Exploratory                          |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 259    |   |    |   | 109    |   |   |   | 150 |   |   |   | 0 |   |
| Dry                                  |   |   | 311    |   |    |   | 95     |   |   |   | 216 |   |   |   | 0 |   |
| Development                          |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 3,087  |   |    |   | 1,702  |   |   |   | 1,377 |   |   |   | 8 |   |
| Dry                                  |   |   | 22     |   |    |   | 8      |   |   |   | 14 |   |   |   | 0 |   |
| For the year ended December 31, 2008 |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Exploratory                          |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 248    |   |    |   | 128    |   |   |   | 120 |   |   |   | 0 |   |
| Dry                                  |   |   | 296    |   |    |   | 105    |   |   |   | 191 |   |   |   | 0 |   |
| Development                          |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 3,137  |   |    |   | 1,563  |   |   |   | 1,565 |   |   |   | 9 |   |
| Dry                                  |   |   | 24     |   |    |   | 4      |   |   |   | 20 |   |   |   | 0 |   |

|                 |   | As of December 31, |   |
|----------------------|--------|--------------------|--------|
|                 |   | 2009               |   |   | 2010 |   |
|                 |   | Gross              |   |   | Net |   |   | Gross |   |   | Net |   |
| China                |   |               |   |   |   |   |   |   |   |   |   |   |
| Shengli              |   |               | 54     |   |   |   | 54 |   |   |   | 26 |   |   |   | 26 |   |
| Others               |   |               | 165    |   |   |   | 165 |   |   |   | 107 |   |   |   | 107 |   |
| Africa               |   |               | 8      |   |   |   | 4 |   |   |   | 4 |   |   |   | 2 |   |
| Total Wells Drilling |   |               | 227    |   |   |   | 223 |   |   |   | 137 |   |   |   | 135 |   |

|                           |   | As of December 31, |   |
|--------------------------------|--------|--------------------|--------|
|                           |   | 2009               |   |   | 2010 |   |
| Productive Wells for Crude Oil |   | Gross              |   |   | Net |   |   | Gross |   |   | Net |   |
| China                          |   |               |   |   |   |   |   |   |   |   |   |   |
| Shengli                        |   |               | 25,600 |   |   |   | 25,600 |   |   |   | 26,960 |   |   |   | 26,960 |   |

----

| Others                 |   |   | 13,384 |   |   |   | 13,384 |   |   |   | 14,101 |   |   |   | 14,101 |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Africa                 |   |   | 16     |   |   |   | 7      |   |   |   | 18     |   |   |   | 8      |   |
| Total Productive Wells |   |   | 39,000 |   |   |   | 38,991 |   |   |   | 41,079 |   |   |   | 41,069 |   |

|                             |   | As of December 31, |   |
|----------------------------------|--------|--------------------|--------|
|                             |   | 2009               |   |   | 2010 |   |
| Productive Wells for Natural Gas |   | Gross              |   |   | Net |   |   | Gross |   |   | Net |   |
| China                            |   |               |   |   |   |   |   |   |   |   |   |   |
| Puguang                          |   |               | 0      |   |   |   | 0 |   |   |   | 34 |   |   |   | 34 |   |
| Others                           |   |               | 3,080  |   |   |   | 3,069 |   |   |   | 3,251 |   |   |   | 3,240 |   |
| Africa                           |   |               | 0      |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Total Productive Wells           |   |               | 3,080  |   |   |   | 3,069 |   |   |   | 3,285 |   |   |   | 3,274 |   |

|                     |   | Year Ended December 31, |   |
|--------------------------|--------|-------------------------|--------|
|                     |   | 2008                    |   |   | 2009 |   |   | 2010 |   |
|                     |   | (in million tonnes)     |   |
| Gasoline                 |   |                    | 29.65  |   |   |   | 34.43 |   |   |   | 35.87 |   |
| Diesel                   |   |                    | 69.74  |   |   |   | 68.86 |   |   |   | 76.09 |   |
| Jet Fuel and Kerosene    |   |                    | 7.99   |   |   |   | 10.39 |   |   |   | 12.42 |   |
| Light chemical feedstock |   |                    | 23.12  |   |   |   | 26.87 |   |   |   | 35.00 |   |
| Lubricant                |   |                    | 12.05  |   |   |   | 1.33 |   |   |   | 1.44 |   |
| Liquefied petroleum gas  |   |                    | 8.15   |   |   |   | 8.66 |   |   |   | 8.39 |   |
| Fuel oil                 |   |                    | 5.09   |   |   |   | 4.09 |   |   |   | 3.15 |   |

|                                                                     |   | As of and for the Year Ended December 31, |   |
|--------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                     |   | 2008                                      |   |   | 2009 |   |   | 2010 |   |
| Primary distillation capacity of crude oil (million tonnes per annum)(1) |   |                                      | 208.00 |   |   |   | 227.00 |   |   |   | 244.70 |   |
| Refinery throughputs (million tonnes per annum )(1) (2)                  |   |                                      | 173.39 |   |   |   | 186.58 |   |   |   | 211.13 |   |

----

|  Refinery |   | Primary Distillation Capacity as of December 31, 2010 |
|----------------|--------|-------------------------------------------------------|
|           |   | (in million tonnes per annum)                         |
| Zhenhai        |   | 23.0                                                  |
| Shanghai       |   | 14.0                                                  |
| Maoming        |   | 13.5                                                  |
| Guangzhou      |   | 13.2                                                  |
| Jinling        |   | 13.0                                                  |
| Yanshan        |   | 13.5                                                  |
| Gaoqiao        |   | 13.0                                                  |
| Qilu           |   | 14.0                                                  |
| Qingdaolianhua |   | 10.0                                                  |
| Yangzi         |   | 8.0                                                   |
| Hainan         |   | 8.0                                                   |
| Luoyang        |   | 8.0                                                   |
| Wuhan          |   | 8.0                                                   |
| Fujian         |   | 12.0                                                  |
| Tianjin        |   | 12.5                                                  |

|                    |   | Year ended December 31, |   |
|-------------------------|--------|-------------------------|--------|
|                    |   | 2008                    |   |   | 2009 |   |   | 2010 |   |
| Source of Supply        |   | (in million tonnes)     |   |
| Self-supply in China    |   |                    | 34.57  |   |   |   | 35.22 |   |   |   | 35.13 |   |
| PetroChina Company Ltd. |   |                    | 6.13   |   |   |   | 7.05 |   |   |   | 5.10 |   |
| CNOOC Ltd.              |   |                    | 9.04   |   |   |   | 6.49 |   |   |   | 6.91 |   |
| Import                  |   |                    | 128.38 |   |   |   | 138.82 |   |   |   | 165.00 |   |
| Total                   |   |                    | 178.13 |   |   |   | 187.58 |   |   |   | 212.14 |   |

----

|                                                                                                                |   | Year Ended December 31, |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                |   | 2008                    |   |   | 2009 |   |   | 2010 |   |
| Sales volume of refined petroleum products in China (in million tonnes)                                             |   |                    | 122.98 |   |   |   | 124.02 |   |   |   | 140.49 |   |
| Of which: Retail                                                                                                    |   |                    | 84.10  |   |   |   | 78.90 |   |   |   | 87.63 |   |
|                   Direct Sales |   |                    | 19.63  |   |   |   | 25.61 |   |   |   | 32.40 |   |
|                   Wholesale    |   |                    | 19.25  |   |   |   | 19.52 |   |   |   | 20.47 |   |
| Average annual throughput of service stations (in tonnes per station)                                               |   |                    | 2,935  |   |   |   | 2,715 |   |   |   | 2,960 |   |

|                                                                                                                                    |   | As of December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                                                    |   |               | 2008   |   |   |   | 2009 |   |   |   | 2010 |   |
| Total number of service stations under Sinopec brand                                                                                    |   |               | 29,279 |   |   |   | 29,698 |   |   |   | 30,116 |   |
| Of which: Self-operated service stations                                                                                                |   |               | 28,647 |   |   |   | 29,055 |   |   |   | 29,601 |   |
|                   Franchised service stations |   |               | 632    |   |   |   | 643 |   |   |   | 515 |   |

----

|        | Our Rated Capacity          |   | Our Production    |   | Major Plants of Production                                                                                                                                                    |
|-------------|-----------------------------|--------|-------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        | (thousand tonnes per annum) |   | (thousand tonnes) |   |                                                                                                                                                                          |
| Ethylene    | 9,325                       |   | 9,059             |   | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Fujian*, Zhongsha (Tianjing)* and Zhenhai                                         |
| Propylene   | 7,940                       |   | 7,363             |   | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Gaoqiao, Anqing, Jinan, Jingmen, Wuhan, Fujian*, Zhongsha (Tianjing)* and Zhenhai |
| Benzene     | 4,103                       |   | 3,522             |   | Yanshan, Shanghai, Yangzi, Qilu, Guangzhou, Zhenhai, Tianjin, Luoyang, SECCO* and BASF-YPC*                                                                                   |
| Styrene     | 1,834                       |   | 1,637             |   | Yanshan, Qilu, Guangzhou, Maoming, SECCO* and Zhenhai                                                                                                                         |
| Para-xylene | 3,468                       |   | 4,023             |   | Shanghai, Yangzi, Qilu, Tianjin Luoyang and Fujian*                                                                                                                           |

----

| Phenol | 594 |   | 550 |   | Yanshan and Gaoqiao |
|--------|-----|--------|-----|--------|---------------------|

|                            | Our Rated Capacity          |   | Our Production    |   | Major Plants of Production                                                                                                                           |
|---------------------------------|-----------------------------|--------|-------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            | (thousand tonnes per annum) |   | (thousand tonnes) |   |                                                                                                                                                 |
| Polyethylene                    | 6,141                       |   | 6,175             |   | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Fujian*, Zhongsha (Tianjing)* and Zhenhai                |
| Polypropylene                   | 4,973                       |   | 5,115             |   | Yanshan, Shanghai, Yangzi, Qilu, Guangzhou, Maoming, Tianjin, Zhongyuan, SECCO*, Wuhan Fenghuang, Jingmen, Fujian*, Zhongsha (Tianjing)* and Zhenhai |
| Polyvinyl chloride              | 600                         |   | 596               |   | Qilu                                                                                                                                                 |
| Polystyrene                     | 750                         |   | 692               |   | Yanshan, Qilu, Maoming, Guangzhou and SECCO*                                                                                                         |
| Acrylonitrile butadiene styrene | 200                         |   | 166               |   | Gaoqiao                                                                                                                                              |

|                       | Our Rated Capacity          |   | Our Production    |   | Major Plants of Production                                                               |
|----------------------------|-----------------------------|--------|-------------------|--------|------------------------------------------------------------------------------------------|
|                       | (thousand tonnes per annum) |   | (thousand tonnes) |   |                                                                                     |
| Purified teraphthalic acid | 3,119                       |   | 3,383             |   | Shanghai, Yangzi, Yizheng, Tianjin and Luoyang                                           |
| Ethylene glycol            | 2,422                       |   | 1,675             |   | Yanshan, Shanghai, Yangzi, Tianjin, Maoming, BASF-YPC*, Zhongsha (Tianjing)* and Zhenhai |
| Acrylonitrile              | 510                         |   | 570               |   | Shanghai, Anqing, Qilu and SECCO*                                                        |
| Caprolactam                | 300                         |   | 293               |   | Shijiazhuang and Baling                                                                  |
| Polyester                  | 2,745                       |   | 2,823             |   | Shanghai, Yizheng, Tianjin and Luoyang                                                   |

----

|            | Our Rated Capacity          |   | Our Production    |   | Major Plants of Production             |
|-----------------|-----------------------------|--------|-------------------|--------|----------------------------------------|
|            | (thousand tonnes per annum) |   | (thousand tonnes) |   |                                   |
| Polyester fiber | 1,241                       |   | 1,077             |   | Yizheng, Shanghai, Tianjin and Luoyang |
| Acrylic fiber   | 265                         |   | 310               |   | Shanghai, Anqing and Qilu              |

|                                               | Our Rated Capacity          |   | Our Production    |   | Major Plants of Operation                     |
|----------------------------------------------------|-----------------------------|--------|-------------------|--------|-----------------------------------------------|
|                                               | (thousand tonnes per annum) |   | (thousand tonnes) |   |                                          |
| Cis-polybutadiene rubber                           | 285                         |   | 315               |   | Yanshan, Qilu, Maoming and Gaoqiao            |
| Styrene butadiene rubber                           | 460                         |   | 440               |   | Yanshan, Qilu, Maoming and Gaoqiao and Yangzi |
| Styrene-butadiene-styrene thermoplastic elastomers | 170                         |   | 177               |   | Yanshan and Maoming                           |
| Isobulylene isoprene rubber                        | 45                          |   | 36                |   | Yanshan                                       |

|    | Our Rated Capacity          |   | Our Production    |   | Major Plants of Production                                 |
|---------|-----------------------------|--------|-------------------|--------|------------------------------------------------------------|
|    | (thousand tonnes per annum) |   | (thousand tonnes) |   |                                                       |
| Ammonia | 1,983                       |   | 891               |   | Zhenhai, Jinling, Anqing, Jiujiang, Qilu, Hubei and Baling |
| Urea    | 3,634                       |   | 1,233             |   | Zhenhai, Jinling, Anqing, Jiujiang, Qilu, Hubei and Baling |

----

|   | · | Formulating guidance plan for annual production, import and export amount of crude oil, natural gas and gasoline nationwide based on its forecast on macro economic conditions in China;                   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                       |
|   | · | Setting the pricing policy for refined petroleum products;                                                                                                                                                 |
|   |   |                                                                                                                                                                                                       |
|   | · | Approving certain domestic and overseas resource investment projects which are subject to NDRC’s approval as required by the Catalogue of Investment Projects Approved by the Government (2004); and |
|   |   |                                                                                                                                                                                                       |
|   | · | Approving foreign investment projects that are in excess of certain investment limits.                                                                                                                     |

----

----

|   | · | removing the “dual-pricing mechanism”, and increasing the basic ex-factory price of onshore natural gases produced by China; and                                                                                                                                                                                             |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                     |
|   | · | increasing the floating range of prices: after combining the first and second tiers of prices of onshore natural gases produced by China, the ex-factory basic price may fluctuate up to 10% of the guidance price with no limitation on the minimum price; within such floating range, business parties may negotiate the actual price. |

----

| Tax Item                    |   | Tax Base                                      |   | Tax Rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------|--------|-----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Enterprise income tax |   | Taxable income                                |   | 25% effective from January 1, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                        |   |                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Value-added tax             |   | Revenue                                       |   | 13% for liquefied petroleum gas, natural gas, and low density polyethylene for production of agricultural film and fertilizers and 17% for other items. We generally charge value-added tax to our customers at the time of settlement on top of the selling prices of our products on behalf of the taxation authority. We may directly claim refund from the value-added tax collected from our customers of any value-added tax that we paid for (i) purchasing materials consumed during the production process; (ii) charges paid for drilling and other engineering services; and (iii) labor consumed during the production process. |
|                        |   |                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Business tax                |   | Revenue from pipeline transportation services |   | 3%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                        |   |                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Consumption tax             |   | Aggregate volume sold or self-consumed        |   | RMB1 per liter for gasoline, naphtha, solvent oil and lubricant; RMB0.8 per liter for diesel, jet fuel and fuel oil. Prior to December 31, 2010, the consumption tax paid for imported naphtha for the production of ethylene and aromatic hydrocarbon will be refunded, and naphtha procured from domestic sources for the production of ethylene and aromatic hydrocarbon will remain tax-free. Consumption tax on jet fuel is currently exempted.                                                                                                                                                                                        |
|                        |   |                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Import tariff               |   | CIF China price                               |   | 5% for gasoline, 6% for light diesel, 9% for jet kerosene and 6% for No. 5-7 fuel oil. The current applicable tax rates in 2010 for jet kerosene and No. 5-7 fuel oil are 6%                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

|                                   |   |                                                                                                                         |   | and 3%, respectively.                                                                                                                                        |
|----------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |   |                                                                                                                         |   |                                                                                                                                                         |
| Resource tax                           |   | Aggregate volume sold or self-consumed                                                                                       |   | RMB 14 to RMB 30 per tonne for crude oil. RMB7 to RMB15 per thousand cubic meters for natural gas. In the 12 provinces in west China, 5% of the sales price. |
|                                   |   |                                                                                                                         |   |                                                                                                                                                         |
| Compensatory fee for mineral resources |   | Revenue of crude oil and natural gas                                                                                         |   | 1%                                                                                                                                                           |
|                                   |   |                                                                                                                         |   |                                                                                                                                                         |
| Exploration license fee                |   | Area                                                                                                                         |   | RMB100 to RMB500 per square kilometer per annum.                                                                                                             |
|                                   |   |                                                                                                                         |   |                                                                                                                                                         |
| Production license fee                 |   | Area                                                                                                                         |   | RMB1,000 per square kilometer per annum.                                                                                                                     |
|                                   |   |                                                                                                                         |   |                                                                                                                                                         |
| Royalty fee(1)                         |   | Production volume                                                                                                            |   | Progressive rate of 0-12.5% for crude oil and 0-3% for natural gas.                                                                                          |
|                                   |   |                                                                                                                         |   |                                                                                                                                                         |
| City construction tax                  |   | Total amount of value-added tax, consumption tax and business tax                                                            |   | 1%, 5% and 7%.                                                                                                                                               |
|                                   |   |                                                                                                                         |   |                                                                                                                                                         |
| Education Surcharge                    |   | Total amount of value-added tax, consumption tax and business tax                                                            |   | 3%.                                                                                                                                                          |
|                                   |   |                                                                                                                         |   |                                                                                                                                                         |
| Special Oil Income Levy                |   | Any revenue derived from sale of domestically produced crude oil when the realized crude oil price exceeds US$40 per barrel. |   | Progressive rate of 20% to 40% for revenue derived from crude oil with realized price in excess of US$40 per barrel.                                         |

| (1) | Payable only by Sino-foreign oil and gas exploration and development cooperative projects, and the project companies of those cooperative projects are not subject to any other resource taxes or fees. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | ORGANIZATIONAL STRUCTURE |
|--------|----|--------------------------|

|   | D. | PROPERTY, PLANT AND EQUIPMENT |
|--------|----|-------------------------------|

----

| ITEM 4A. | UNRESOLVED STAFF COMMENTS |
|----------|---------------------------|

----

| ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
|---------|----------------------------------------------|
|    |                                         |
|    | A.                                           | GENERAL |

----

|                       |   | Year ended December 31, |   |
|----------------------------|--------|-------------------------|--------|
|                       |   | 2008                    |   |   | 2009 |   |   | 2010 |   |
|                       |   | (RMB in millions)       |   |
| Exploration and production |   |                    | 5,991  |   |   |   | 1,595 |   |   |   | 3,250 |   |
| Refining                   |   |                    | 270    |   |   |   | 396 |   |   |   | 4,902 |   |
| Marketing and distribution |   |                    | 709    |   |   |   | 1,479 |   |   |   | 1,183 |   |
| Chemicals                  |   |                    | 1,511  |   |   |   | 3,807 |   |   |   | 5,121 |   |
| Corporate and others       |   |                    | 19     |   |   |   | 8 |   |   |   | 21 |   |
| Total                      |   |                    | 8,500  |   |   |   | 7,285 |   |   |   | 14,477 |   |

|                    |   | Year ended December 31, |   |
|-------------------------|--------|-------------------------|--------|
|                    |   | 2008                    |   |   | 2009 |   |   | 2010 |   |
|                    |   | (RMB in millions)       |   |
| Balance as of January 1 |   |                    | 2,909  |   |   |   | 2,406 |   |   |   | 1,921 |   |

----

| Impairment losses recognized for the year. |   |   | 143   |   |   |   | 70    |   |   |   | 48    |   |
|--------------------------------------------|--------|--------|-------|--------|--------|--------|-------|--------|--------|--------|-------|--------|
| Reversal of impairment losses              |   |   | (254  | )      |   |   | (245  | )      |   |   | (130  | )      |
| Written off                                |   |   | (392  | )      |   |   | (310  | )      |   |   | (517  | )      |
| Balance as of December 31                  |   |   | 2,406 |   |   |   | 1,921 |   |   |   | 1,322 |   |

|                              |   | Year ended December 31, |   |
|-----------------------------------|--------|-------------------------|--------|
|                              |   | 2008                    |   |   | 2009 |   |   | 2010 |   |
|                              |   | (RMB in millions)       |   |
| Balance as of January 1           |   |                    | 4,572  |   |   |   | 9,189 |   |   |   | 1,038 |   |
| Allowance for the year            |   |                    | 8,777  |   |   |   | 401 |   |   |   | 1,087 |   |
| Reversal of allowance on disposal |   |                    | (64    | ) |   |   | (185 | ) |   |   | (77 | ) |
| Written off                       |   |                    | (4,096 | ) |   |   | (8,367 | ) |   |   | (957 | ) |
| Balance as of December 31         |   |                    | 9,189  |   |   |   | 1,038 |   |   |   | 1,091 |   |

|   | · | Exploration and Production Segment, which consists of our activities related to exploring for and developing, producing and selling crude oil and natural gas;                                                                                                                                                  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                            |
|   | · | Refining Segment, which consists of purchasing crude oil from our exploration and production segment and from third parties, processing of crude oil into refined petroleum products, selling refined petroleum products principally to our marketing and distribution segment;                                 |
|   |   |                                                                                                                                                                                                                                                                                                            |
|   | · | Marketing and Distribution Segment, which consists of purchasing refined petroleum products from our refining segment and third parties, and marketing, selling and distributing refined petroleum products by wholesale to large customers and independent distributors and retail through our retail network; |
|   |   |                                                                                                                                                                                                                                                                                                            |
|   | · | Chemicals Segment, which consists of purchasing chemical feedstock principally from the refining segment and producing, marketing, selling and distributing chemical products; and                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                            |
|   | · | Corporate and Others Segment, which consists principally of trading activities of the import and export subsidiaries and our research and development activities.                                                                                                                                               |

|   | B. | CONSOLIDATED RESULTS OF OPERATIONS |
|--------|----|------------------------------------|

----

|                                                                                                               |   | Year Ended December 31, |       |   | Rate of Change from 2009 to |   |
|--------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|-----------------------------|--------|
|                                                                                                               |   | 2010                    |       |   | 2009                        |   |   | 2010 |   |
|                                                                                                               |   | (RMB in millions)       |       |   | %                           |   |
| Operating revenues and other income                                                                                |   |                    | 1,913,182  |   |                        |   | 1,345,052 |   |   |   | 42.2 |   |
| Operating revenues                                                                                                 |   |                    | 1,876,758  |   |                        |   | 1,315,915 |   |   |   | 42.6 |   |
| Other income                                                                                                       |   |                    | 36,424     |   |                        |   | 29,137 |   |   |   | 25.0 |   |
| Operating expenses                                                                                                 |   |                    | (1,808,178 | )      |                        |   | (1,254,353 | ) |   |   | 44.2 |   |
| Purchased crude oil, products and operating supplies and expenses                                                  |   |                    | (1,482,484 | )      |                        |   | (980,564 | ) |   |   | 51.2 |   |
| Selling, general and administrative expenses                                                                       |   |                    | (51,048    | )      |                        |   | (40,539 | ) |   |   | 25.9 |   |
| Depreciation, depletion and amortization                                                                           |   |                    | (59,223    | )      |                        |   | (54,016 | ) |   |   | 9.6 |   |
| Exploration expenses, including dry holes                                                                          |   |                    | (10,955    | )      |                        |   | (10,545 | ) |   |   | 3.9 |   |
| Personnel expenses                                                                                                 |   |                    | (33,672    | )      |                        |   | (28,895 | ) |   |   | 16.5 |   |
| Taxes other than income tax                                                                                        |   |                    | (157,189   | )      |                        |   | (132,884 | ) |   |   | 18.3 |   |
| Other operating expenses, net                                                                                      |   |                    | (13,607    | )      |                        |   | (6,910 | ) |   |   | 96.9 |   |
| Operating income                                                                                                   |   |                    | 105,004    |   |                        |   | 90,699 |   |   |   | 15.8 |   |
| Net finance costs                                                                                                  |   |                    | (6,974     | )      |                        |   | (7,466 | ) |   |   | (6.6 | ) |
| Investment income and share of income less losses from   associates and jointly controlled entities |   |                    | 5,663      |   |                        |   | 3,371 |   |   |   | 68.0 |   |
| Earnings before income tax                                                                                         |   |                    | 103,693    |   |                        |   | 86,604 |   |   |   | 19.7 |   |
| Tax expense                                                                                                        |   |                    | (25,689    | )      |                        |   | (19,599 | ) |   |   | 31.1 |   |
| Net income                                                                                                         |   |                    | 78,004     |   |                        |   | 67,005 |   |   |   | 16.4 |   |
| Attributable to:                                                                                                   |   |                    |       |   |                        |   |   |   |   |   |   |   |
| Equity shareholders of the Company                                                                                 |   |                    | 71,800     |   |                        |   | 63,147 |   |   |   | 13.7 |   |
| Non-controlling interests                                                                                          |   |                    | 6,204      |   |                        |   | 3,858 |   |   |   | 60.8 |   |

|        |   | Average Realized Price |   |   | Rate of Change from |   |   | Sales Volume |   |   | Rate of Change from |   |
|-------------|--------|------------------------|--------|--------|---------------------|--------|--------|--------------|--------|--------|---------------------|--------|
|        |   | 2010                   |   |   | 2009                |   |   | 2009 to 2010 |   |   | 2010                |   |   | 2009 |   |   | 2009 to 2010 |   |
|        |   | (RMB)                  |   |   | (%)                 |   |   |         |   |   | (%)                 |   |
|        |   |                   |   |   |                |   |   |         |   |   |                |   |   |   |   |   |   |   |
| Crude Oil   |   |                   | 3,349  | (1)    |                |   | 2,303  | (1)          |   |   | 45.4                |   |   |   | 5,554 | (2) |   |   | 4,915 | (2) |   |   | 13.0 |   |
| Natural Gas |   |                   | 1,155  | (3)    |                |   | 933    | (3)          |   |   | 23.8                |   |   |   | 9,951 | (4) |   |   | 6,486 | (4) |   |   | 53.4 |   |
| Gasoline    |   |                   | 7,297  | (1)    |                |   | 6,367  | (1)          |   |   | 14.6                |   |   |   | 43,467 | (2) |   |   | 39,035 | (2) |   |   | 11.4 |   |
| Diesel      |   |                   | 5,992  | (1)    |                |   | 5,092  | (1)          |   |   | 17.7                |   |   |   | 90,827 | (2) |   |   | 82,344 | (2) |   |   | 10.3 |   |
| Kerosene    |   |                   | 4,758  | (1)    |                |   | 3,918  | (1)          |   |   | 21.4                |   |   |   | 14,758 | (2) |   |   | 11,353 | (2) |   |   | 30.0 |   |

----

| Basic chemical  feedstock |   |   | 5,598  | (1) |   |   | 4,359  | (1) |   |   | 28.4 |   |   |   | 17,821 | (2) |   |   | 13,272 | (2) |   |   | 34.3  |   |
|-------------------------------------|--------|--------|--------|-----|--------|--------|--------|-----|--------|--------|------|--------|--------|--------|--------|-----|--------|--------|--------|-----|--------|--------|-------|--------|
| Synthetic Fiber Monomer and Polymer |   |   | 8,211  | (1) |   |   | 6,530  | (1) |   |   | 25.7 |   |   |   | 5,772  | (2) |   |   | 4,650  | (2) |   |   | 24.1  |   |
| Synthetic Resin                     |   |   | 9,243  | (1) |   |   | 8,072  | (1) |   |   | 14.5 |   |   |   | 9,871  | (2) |   |   | 8,667  | (2) |   |   | 13.9  |   |
| Synthetic Fiber                     |   |   | 11,644 | (1) |   |   | 9,140  | (1) |   |   | 27.4 |   |   |   | 1,512  | (2) |   |   | 1,418  | (2) |   |   | 6.6   |   |
| Synthetic Rubber                    |   |   | 16,436 | (1) |   |   | 11,448 | (1) |   |   | 43.6 |   |   |   | 1,222  | (2) |   |   | 1,116  | (2) |   |   | 9.5   |   |
| Chemical fertilizer                 |   |   | 1,641  | (1) |   |   | 1,657  | (1) |   |   | (1.0 | )      |   |   | 1,299  | (2) |   |   | 1,769  | (2) |   |   | (26.6 | )      |

| (1) | per tonne                 |
|-----|---------------------------|
| (2) | thousand tonnes           |
| (3) | per thousand cubic meters |
| (4) | million cubic meters      |

|   | · | crude oil purchase expenses were RMB606 billion, representing an increase of 49.5% over 2009. In 2010, the total throughput of crude oil that was purchased externally was 155.1 million tonnes (excluding the amount processed for third parties), representing an increase of 14.8% over 2009; the average unit processing cost for crude oil purchased externally was RMB3,907 per tonne, representing an increase of 30.2% over 2009; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | · | other purchasing expenses were RMB 876.5 billion, representing an increase of 52.4% over 2009. This was mainly due to the increase in the cost of refined oil, chemical raw materials and other feedstock purchased externally, and the increase in the expense of affiliated companies.                                                                                                                                                      |

----

----

|                                                              |   | Year Ended December 31, |       |   |   |   |
|-------------------------------------------------------------------|--------|-------------------------|------------|--------|--------|--------|
|                                                              |   | 2009                    |       |   | 2008   |   |   | Rate of Change from 2008 to 2009 |   |
|                                                              |   | (RMB in millions)       |       |   | %      |   |
| Operating revenues and other income                               |   |                    | 1,345,052  |   |   |   | 1,495,148 |   |   |   | (10.04 | ) |
| Operating revenues                                                |   |                    | 1,315,915  |   |   |   | 1,413,203 |   |   |   | (6.88 | ) |
| Other income                                                      |   |                    | 29,137     |   |   |   | 31,088 |   |   |   | (6.28 | ) |
| Other                                                             |   |                    | -          |   |   |   | 50,857 |   |   |   | - |   |
| Operating expenses                                                |   |                    | (1,254,353 | )      |   |   | (1,456,567 | ) |   |   | (13.88 | ) |
| Purchased crude oil, products and operating supplies and expenses |   |                    | (980,564   | )      |   |   | (1,270,586 | ) |   |   | (22.83 | ) |
| Selling, general and administrative expenses                      |   |                    | (40,539    | )      |   |   | (39,420 | ) |   |   | 2.84 |   |
| Depreciation, depletion and amortization                          |   |                    | (54,016    | )      |   |   | (49,541 | ) |   |   | 9.03 |   |
| Exploration expenses, including dry holes                         |   |                    | (10,545    | )      |   |   | (8,310 | ) |   |   | 26.90 |   |
| Personnel expenses                                                |   |                    | (28,895    | )      |   |   | (23,408 | ) |   |   | 23.44 |   |
| Taxes other than income tax                                       |   |                    | (132,884   | )      |   |   | (57,214 | ) |   |   | 132.26 |   |
| Other operating expenses, net                                     |   |                    | (6,910     | )      |   |   | (8,088 | ) |   |   | (14.56 | ) |
| Operating income                                                  |   |                    | 90,699     |   |   |   | 38,581 |   |   |   | 135.09 |   |
| Net finance costs                                                 |   |                    | (7,466     | )      |   |   | (6,109 | ) |   |   | (22.21 | ) |
| Income from investments                                           |   |                    | 3,371      |   |   |   | 970 |   |   |   | (247.53 | ) |
| Earnings before income tax                                        |   |                    | 86,604     |   |   |   | 33,442 |   |   |   | 158.97 |   |
| Tax (expense)/benefit                                             |   |                    | (19,599    | )      |   |   | (3,624 | ) |   |   | 440.81 |   |
| Net income                                                        |   |                    | 67,005     |   |   |   | 29,818 |   |   |   | 124.71 |   |
| Attributable to:                                                  |   |                    |       |   |   |   |   |   |   |   |   |   |
| Equity shareholders of the Company                                |   |                    | 63,147     |   |   |   | 31,199 |   |   |   | 102.40 |   |
| Non-controlling interests                                         |   |                    | 3,858      |   |   |   | (1,381 | ) |   |   | - |   |

|        |   | Average Realized Price |   |   | Rate of Change from |   |   | Sales Volume |   |   | Rate of Change from |   |
|-------------|--------|------------------------|--------|--------|---------------------|--------|--------|--------------|--------|--------|---------------------|--------|
|        |   | 2009                   |   |   | 2008                |   |   | 2008 to 2009 |   |   | 2009                |   |   | 2008 |   |   | 2008 to 2009 |   |
|        |   | (RMB)                  |   |   | (%)                 |   |   |         |   |   |                |   |   | (%) |   |
|        |   |                   |   |   |                |   |   |         |   |   |                |   |   |   |   |   |   |   |
| Crude Oil   |   |                   | 2,303  | (1)    |                |   | 4,190  | (1)          |   |   | (45.0               | )      |   |   | 4,915 | (2) |   |   | 4,394 | (2) |   |   | 11.9 |   |
| Natural Gas |   |                   | 933    | (3)    |                |   | 911    | (3)          |   |   | 2.4                 |   |   |   | 6,486 | (4) |   |   | 6,283 | (4) |   |   | 3.2 |   |

----

| Gasoline                            |   |   | 6,367  | (1) |   |   | 6,409  | (1) |   |   | (0.7  | ) |   |   | 39,035 | (2) |   |   | 37,732 | (2) |   |   | 3.5  |   |
|-------------------------------------|--------|--------|--------|-----|--------|--------|--------|-----|--------|--------|-------|---|--------|--------|--------|-----|--------|--------|--------|-----|--------|--------|------|--------|
| Diesel                              |   |   | 5,092  | (1) |   |   | 5,629  | (1) |   |   | (9.5  | ) |   |   | 82,344 | (2) |   |   | 80,236 | (2) |   |   | 2.6  |   |
| Kerosene                            |   |   | 3,918  | (1) |   |   | 6,063  | (1) |   |   | (35.4 | ) |   |   | 11,353 | (2) |   |   | 9,216  | (2) |   |   | 23.2 |   |
| Basic chemical feedstock            |   |   | 4,359  | (1) |   |   | 6,238  | (1) |   |   | (30.1 | ) |   |   | 13,272 | (2) |   |   | 10,667 | (2) |   |   | 24.4 |   |
| Synthetic Fiber Monomer and Polymer |   |   | 6,530  | (1) |   |   | 8,054  | (1) |   |   | (18.9 | ) |   |   | 4,650  | (2) |   |   | 3,990  | (2) |   |   | 16.5 |   |
| Synthetic Resin                     |   |   | 8,072  | (1) |   |   | 10,094 | (1) |   |   | (20.0 | ) |   |   | 8,667  | (2) |   |   | 7,827  | (2) |   |   | 10.7 |   |
| Synthetic Fiber                     |   |   | 9,140  | (1) |   |   | 10,488 | (1) |   |   | (12.9 | ) |   |   | 1,418  | (2) |   |   | 1,353  | (2) |   |   | 4.8  |   |
| Synthetic Rubber                    |   |   | 11,448 | (1) |   |   | 16,160 | (1) |   |   | (29.2 | ) |   |   | 1,116  | (2) |   |   | 982    | (2) |   |   | 13.6 |   |
| Chemical fertilizer                 |   |   | 1,657  | (1) |   |   | 1,729  | (1) |   |   | (4.2  | ) |   |   | 1,769  | (2) |   |   | 1,658  | (2) |   |   | 6.7  |   |

| (1) | per tonne                 |
|-----|---------------------------|
| (2) | thousand tonnes           |
| (3) | per thousnad cubic meters |
| (4) | million cubic meters      |

|   | · | crude oil purchase expenses were RMB405.4 billion, representing a decrease of 41.3% over 2008. In 2009, the total throughput of crude oil that was purchased externally was 135.14 million tonnes (excluding the amount processed for third parties), representing an increase of 0.2% over 2008; the average unit processing cost for crude oil purchased externally was RMB3,000 per tonne, representing a decrease of 41.5% over 2008; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | · | other purchasing expenses were RMB575.2 billion, representing a decrease of 0.7% over 2008. This was mainly due to the decrease in the cost of gasoline, diesel, kerosene and other feedstock purchased externally.                                                                                                                                                                                                                           |

----

|   | C. | DISCUSSIONS ON RESULTS OF SEGMENT OPERATIONS |
|--------|----|----------------------------------------------|

----

|                                                                 |   | Year Ended December 31, |   |   | As a Percentage ofConsolidated OperatingRevenues BeforeEliminationof Inter-segment Sales |   |   | As a Percentage ofConsolidatedOperating RevenuesAfter Elimination ofInter-segment Sales |   |
|----------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|
|                                                                 |   | 2008                    |   |   | 2009                                                                                     |   |   | 2010                                                                                    |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |
|                                                                 |   | (RMB in billions)       |   |   | (%)                                                                                      |   |   | (%)                                                                                     |   |   | (%) |   |   | (%) |   |
|                                                                 |   |                    |   |   |                                                                                     |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |                    |   |   |                                                                                     |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Exploration and Production External sales(1)                         |   |                    | 45     |   |                                                                                     |   | 37     |                                                                                    |   |   | 53 |   |   |   | 1.6 |   |   |   | 1.6 |   |   |   | 2.7 |   |   |   | 2.8 |   |
| Inter-segment sales                                                  |   |                    | 168    |   |                                                                                     |   | 98     |                                                                                    |   |   | 134 |   |   |   | 4.1 |   |   |   | 4.0 |   |   |   |   |   |   |   |   |
| Total operating revenue                                              |   |                    | 213    |   |                                                                                     |   | 135    |                                                                                    |   |   | 187 |   |   |   | 5.7 |   |   |   | 5.6 |   |   |   |   |   |   |   |   |
| Refining                                                             |   |                  |   |   |                                                                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                                    |   |                    | 178    |   |                                                                                     |   | 100    |                                                                                    |   |   | 166 |   |   |   | 4.2 |   |   |   | 5.0 |   |   |   | 7.4 |   |   |   | 8.7 |   |
| Inter-segment sales                                                  |   |                    | 693    |   |                                                                                     |   | 604    |                                                                                    |   |   | 806 |   |   |   | 25.6 |   |   |   | 24.2 |   |   |   |   |   |   |   |   |
| Total operating revenue                                              |   |                    | 871    |   |                                                                                     |   | 704    |                                                                                    |   |   | 972 |   |   |   | 29.8 |   |   |   | 29.2 |   |   |   |   |   |   |   |   |   |
| Marketing and distribution                                           |   |                  |   |   |                                                                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                                    |   |                    | 814    |   |                                                                                     |   | 781    |                                                                                    |   |   | 1,038 |   |   |   | 33.1 |   |   |   | 31.2 |   |   |   | 58.0 |   |   |   | 54.2 |   |
| Inter-segment sales                                                  |   |                    | 3      |   |                                                                                     |   | 2      |                                                                                    |   |   | 3 |   |   |   | 0.1 |   |   |   | 0.1 |   |   |   |   |   |   |   |   |
| Total operating revenue                                              |   |                    | 817    |   |                                                                                     |   | 783    |                                                                                    |   |   | 1,041 |   |   |   | 33.2 |   |   |   | 31.3 |   |   |   |   |   |   |   |   |
| Chemicals                                                            |   |                  |   |   |                                                                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                                    |   |                    | 226    |   |                                                                                     |   | 197    |                                                                                    |   |   | 292 |   |   |   | 8.4 |   |   |   | 8.8 |   |   |   | 14.7 |   |   |   | 15.3 |   |
| Inter-segment sales                                                  |   |                    | 27     |   |                                                                                     |   | 21     |                                                                                    |   |   | 36 |   |   |   | 0.9 |   |   |   | 1.1 |   |   |   |   |   |   |   |   |
| Total operating revenue                                              |   |                    | 253    |   |                                                                                     |   | 218    |                                                                                    |   |   | 328 |   |   |   | 9.3 |   |   |   | 9.9 |   |   |   |   |   |   |   |   |
| Corporate and others                                                 |   |                  |   |   |                                                                                   |   |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                                    |   |                    | 232    |   |                                                                                     |   | 230    |                                                                                    |   |   | 364 |   |   |   | 9.7 |   |   |   | 11.0 |   |   |   | 17.2 |   |   |   | 19.0 |   |
| Inter-segment sales                                                  |   |                    | 484    |   |                                                                                     |   | 292    |                                                                                    |   |   | 433 |   |   |   | 12.3 |   |   |   | 13.0 |   |   |   |   |   |   |   |   |
| Total operating revenue                                              |   |                    | 716    |   |                                                                                     |   | 522    |                                                                                    |   |   | 797 |   |   |   | 22.0 |   |   |   | 24.0 |   |   |   |   |   |   |   |   |
| Total operating revenue  before inter-segment eliminations |   |                    | 2,870  |   |                                                                                     |   | 2,362  |                                                                                    |   |   | 3,325 |   |   |   | 100.0 |   |   |   | 100.0 |   |   |   |   |   |   |   |   |
| Elimination of inter-segment sales                                   |   |                    | (1,375 | )      |                                                                                     |   | (1,017 | )                                                                                       |   |   | (1,412 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated operating revenues                                      |   |                    | 1,495  |   |                                                                                     |   | 1,345  |                                                                                    |   |   | 1,913 |   |   |   |   |   |   |   |   |   |   |   | 100.0 |   |   |   | 100.0 |   |

|  (1) | include other operating revenues. |
|-----------|-----------------------------------|

|                       |   |   Year Ended December 31, | Rate of Change from 2009 to 2010 |
|----------------------------|--------|-------------------------------------|----------------------------------|
|                       |   | 2008                                |                             |   | 2009 |   | 2010 |   |
|                       |   | (RMB in billions)                   | (%)                              |
| Exploration and Production |   |                                |                             |   |   |   |   |   |   |   |

----

| Total operating revenues      |   |   | 213    |   |   |   | 135    |   |   |              | 187    |   |   |   | 38.8   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------------|--------|--------|--------|--------|--------|--------|
| Total operating expenses      |   |   | (134   | )      |   |   | (111   | )      |   |              | (140   | )      |   |   | 26.2   |   |
| Total operating income        |   |   | 79     |   |   |   | 24     |   |   |              | 47     |   |   |   | 97.3   |   |
| Refining                      |   |   |   |   |   |   |   |   |   |              |   |   |   |   |   |   |
| Total operating revenues      |   |   | 830    |   |   |   | 704    |   |   |              | 972    |   |   |   | 38.1   |   |
| Other income                  |   |   | 41     |   |   |   | 0      |   |   |              | 0      |   |   |   | -      |   |
| Total operating expenses      |   |   | (938   | )      |   |   | (676   | )      |   |              | (956   | )      |   |   | 41.4   |   |
| Total operating income/(loss) |   |   | (67    | )      |   |   | 28     |   |   |              | 16     |   |   |   | (42.4  | )      |
| Marketing and distribution    |   |   |   |   |   |   |   |   |   |              |   |   |   |   |   |   |
| Total operating revenues      |   |   | 807    |   |   |   | 783    |   |   |              | 1,041  |   |   |   | 32.9   |   |
| Other income                  |   |   | 10     |   |   |   | 0      |   |   |              | 0      |   |   |   | -      |   |
| Total operating expenses      |   |   | (778   | )      |   |   | (753   | )      |   |              | (1,010 | )      |   |   | 34.2   |   |
| Total operating income        |   |   | 39     |   |   |   | 30     |   |   |              | 31     |   |   |   | 1.5    |   |
| Chemicals                     |   |   |   |   |   |   |   |   |   |              |   |   |   |   |   |   |
| Total operating revenues      |   |   | 253    |   |   |   | 218    |   |   |              | 328    |   |   |   | 50.0   |   |
| Total operating expenses      |   |   | (266   | )      |   |   | (205   | )      |   |              | (313   | )      |   |   | 52.7   |   |
| Total operating income/(loss) |   |   | (13    | )      |   |   | 14     |   |   |              | 15     |   |   |   | 8.9    |   |
| Corporate and others          |   |   |   |   |   |   |   |   |   |              |   |   |   |   |   |   |
| Total operating revenues      |   |   | 716    |   |   |   | 522    |   |   |              | 797    |   |   |   | 52.7   |   |
| Total operating expenses      |   |   | (718   | )      |   |   | (524   | )      |   |              | (799   | )      |   |   | 52.5   |   |
| Total operating loss          |   |   | (2     | )      |   |   | (2     | )      |   | (2) |   |   |   | 6.2    |   |

----

|                             |   | Sales volume      |   |   | Rate of change from |   |   | Average realized prices |   |   | Rate of change from |   |
|----------------------------------|--------|-------------------|--------|--------|---------------------|--------|--------|-------------------------|--------|--------|---------------------|--------|
|                             |   | 2010              |   |   | 2009                |   |   | 2009 to 2010            |   |   | 2010                |   |   | 2009 |   |   | 2009 to 2010 |   |
|                             |   | (thousand tonnes) |   |   | (%)                 |   |   | (RMB per tonne)         |   |   | (%)                 |   |
| Gasoline                         |   |              | 32,699 |   |                |   | 31,343 |                    |   |   | 4.3                 |   |   |   | 6,581 |   |   |   | 5,591 |   |   |   | 17.7 |   |
| Diesel                           |   |              | 69,535 |   |                |   | 63,095 |                    |   |   | 10.2                |   |   |   | 5,554 |   |   |   | 4,646 |   |   |   | 19.5 |   |
| Chemical feedstock               |   |              | 34,260 |   |                |   | 26,983 |                    |   |   | 27.0                |   |   |   | 4,574 |   |   |   | 3,333 |   |   |   | 37.2 |   |
| Other refined petroleum products |   |              | 50,418 |   |                |   | 44,075 |                    |   |   | 14.4                |   |   |   | 4,114 |   |   |   | 3,208 |   |   |   | 28.2 |   |

----

|                                          |   | Sales volume      |   |   | Rate of change from |   |   | Average realized prices |   |   | Rate of change from |   |
|-----------------------------------------------|--------|-------------------|--------|--------|---------------------|--------|--------|-------------------------|--------|--------|---------------------|--------|
|                                          |   | 2009              |   |   | 2008                |   |   | 2008 to 2009            |   |   | 2009                |   |   | 2008 |   |   | 2008 to 2009 |   |
|                                          |   | (thousand tonnes) |   |   | (%)                 |   |   | (RMB per tonne)         |   |   | (%)                 |   |
| Gasoline                                      |   |              | 31,343 |   |                |   | 28,725 |                    |   |   | 9.1                 |   |   |   | 5,591 |   |   |   | 5,586 |   |   |   | 0.1 |   |
| Diesel                                        |   |              | 63,095 |   |                |   | 68,725 |                    |   |   | (8.2                | )      |   |   | 4,646 |   |   |   | 4,934 |   |   |   | (5.8 | ) |
| Chemical feedstock                            |   |              | 26,983 |   |                |   | 23,604 |                    |   |   | 14.3                |   |   |   | 3,333 |   |   |   | 5,983 |   |   |   | (44.3 | ) |
| Kerosene and other refined petroleum products |   |              | 44,075 |   |                |   | 41,895 |                    |   |   | 5.2                 |   |   |   | 3,208 |   |   |   | 4,391 |   |   |   | (26.9 | ) |

----

|        |   | Sales Volume      |   |   | Rate of Change from |   |   | Average  Realized Prices |   |   | Rate of Change from |   |
|-------------|--------|-------------------|--------|--------|---------------------|--------|--------|------------------------------------|--------|--------|---------------------|--------|
|        |   | 2010              |   |   | 2009                |   |   | 2009 to 2010                       |   |   | 2010                |   |   | 2009 |   |   | 2009 to 2010 |   |
|        |   | (thousand tonnes) |   |   | (%)                 |   |   | (RMB per tonne)                    |   |   | (%)                 |   |
| Gasoline    |   |              | 43,511 |   |                |   | 39,067 |                               |   |   | 11.4                |   |   |   | 7,296 |   |   |   | 6,366 |   |   |   | 14.6 |   |
| Retail sale |   |              | 35,050 |   |                |   | 31,474 |                               |   |   | 11.4                |   |   |   | 7,469 |   |   |   | 6,540 |   |   |   | 14.2 |   |
| Direct sale |   |              | 2,489  |   |                |   | 2,377  |                               |   |   | 4.7                 |   |   |   | 6,424 |   |   |   | 5,554 |   |   |   | 15.7 |   |
| Wholesale   |   |              | 5,972  |   |                |   | 5,216  |                               |   |   | 14.5                |   |   |   | 6,649 |   |   |   | 5,687 |   |   |   | 16.9 |   |
| Diesel      |   |              | 91,257 |   |                |   | 82,701 |                               |   |   | 10.3                |   |   |   | 5,990 |   |   |   | 5,091 |   |   |   | 17.7 |   |
| Retail sale |   |              | 46,357 |   |                |   | 41,941 |                               |   |   | 10.5                |   |   |   | 6,243 |   |   |   | 5,374 |   |   |   | 16.2 |   |
| Direct sale |   |              | 29,134 |   |                |   | 28,143 |                               |   |   | 3.5                 |   |   |   | 5,819 |   |   |   | 4,844 |   |   |   | 20.1 |   |
| Wholesale   |   |              | 15,766 |   |                |   | 12,617 |                               |   |   | 25.0                |   |   |   | 5,560 |   |   |   | 4,697 |   |   |   | 18.4 |   |
| Kerosene    |   |              | 14,770 |   |                |   | 11,330 |                               |   |   | 30.4                |   |   |   | 4,759 |   |   |   | 3,919 |   |   |   | 21.4 |   |
| Fuel Oil    |   |              | 23,424 |   |                |   | 17,894 |                               |   |   | 30.9                |   |   |   | 3,527 |   |   |   | 2,952 |   |   |   | 19.5 |   |

----

|        |   | Sales Volume      |   |   | Rate of Change from |   |   | Average  Realized Prices |   |   | Rate of Change from |   |
|-------------|--------|-------------------|--------|--------|---------------------|--------|--------|------------------------------------|--------|--------|---------------------|--------|
|        |   | 2009              |   |   | 2008                |   |   | 2008 to 2009                       |   |   | 2009                |   |   | 2008 |   |   | 2008 to 2009 |   |
|        |   | (thousand tonnes) |   |   | (%)                 |   |   | (RMB per tonne)                    |   |   | (%)                 |   |
| Gasoline    |   |              | 39,067 |   |                |   | 37,712 |                               |   |   | 3.6                 |   |   |   | 6,366 |   |   |   | 6,410 |   |   |   | (0.7 | ) |
| Retail sale |   |              | 31,474 |   |                |   | 29,833 |                               |   |   | 5.5                 |   |   |   | 6,540 |   |   |   | 6,524 |   |   |   | 0.3 |   |
| Direct sale |   |              | 2,377  |   |                |   | 2,614  |                               |   |   | (9.1                | )      |   |   | 5,554 |   |   |   | 6,013 |   |   |   | (7.6 | ) |
| Wholesale   |   |              | 5,216  |   |                |   | 5,265  |                               |   |   | (0.9                | )      |   |   | 5,687 |   |   |   | 5,964 |   |   |   | (4.6 | ) |
| Diesel      |   |              | 82,701 |   |                |   | 80,649 |                               |   |   | 2.5                 |   |   |   | 5,091 |   |   |   | 5,629 |   |   |   | (9.6 | ) |
| Retail sale |   |              | 41,941 |   |                |   | 48,894 |                               |   |   | (14.2               | )      |   |   | 5,374 |   |   |   | 5,704 |   |   |   | (5.8 | ) |
| Direct sale |   |              | 28,143 |   |                |   | 22,313 |                               |   |   | 26.1                |   |   |   | 4,844 |   |   |   | 5,561 |   |   |   | (12.9 | ) |
| Wholesale   |   |              | 12,617 |   |                |   | 9,442  |                               |   |   | 33.6                |   |   |   | 4,697 |   |   |   | 5,402 |   |   |   | (13.0 | ) |
| Kerosene    |   |              | 11,330 |   |                |   | 9,186  |                               |   |   | 23.3                |   |   |   | 3,919 |   |   |   | 6,065 |   |   |   | (35.4 | ) |
| Fuel Oil    |   |              | 17,894 |   |                |   | 11,459 |                               |   |   | 56.2                |   |   |   | 2,952 |   |   |   | 3,692 |   |   |   | (20.1 | ) |

|                                  |   | Sales Volume      |   |   | Rate of Change from |   |   | Average Realized Prices |   |   | Rate of Change from |   |
|---------------------------------------|--------|-------------------|--------|--------|---------------------|--------|--------|-------------------------|--------|--------|---------------------|--------|
|                                  |   | 2010              |   |   | 2009                |   |   | 2009 to 2010            |   |   | 2010                |   |   | 2009 |   |   | 2009 to 2010 |   |
|                                  |   | (thousand tonnes) |   |   | (%)                 |   |   | (RMB per tonne)         |   |   | (%)                 |   |
| Basic organic chemicals               |   |              | 23,339 |   |                |   | 16,663 |                    |   |   | 40.1                |   |   |   | 5,547 |   |   |   | 4,296 |   |   |   | 29.1 |   |
| Synthetic fiber monomers and polymers |   |              | 5,820  |   |                |   | 4,692  |                    |   |   | 24.0                |   |   |   | 8,194 |   |   |   | 6,519 |   |   |   | 25.7 |   |
| Synthetic resins                      |   |              | 9,880  |   |                |   | 8,682  |                    |   |   | 13.8                |   |   |   | 9,243 |   |   |   | 8,073 |   |   |   | 14.5 |   |
| Synthetic fiber                       |   |              | 1,512  |   |                |   | 1,418  |                    |   |   | 6.6                 |   |   |   | 11,644 |   |   |   | 9,140 |   |   |   | 27.4 |   |
| Synthetic rubber                      |   |              | 1,222  |   |                |   | 1,119  |                    |   |   | 9.2                 |   |   |   | 16,435 |   |   |   | 11,448 |   |   |   | 43.6 |   |
| Chemical fertilizer                   |   |              | 1,329  |   |                |   | 1,769  |                    |   |   | (24.9               | )      |   |   | 1,641 |   |   |   | 1,657 |   |   |   | (1.0 | ) |

----

|                                  |   | Sales Volume      |   |   | Rate of Change from |   |   | Average Realized Prices |   |   | Rate of Change from |   |
|---------------------------------------|--------|-------------------|--------|--------|---------------------|--------|--------|-------------------------|--------|--------|---------------------|--------|
|                                  |   | 2009              |   |   | 2008                |   |   | 2008 to 2009            |   |   | 2009                |   |   | 2008 |   |   | 2008 to 2009 |   |
|                                  |   | (thousand tonnes) |   |   | (%)                 |   |   | (RMB per tonne)         |   |   | (%)                 |   |
| Basic organic chemicals               |   |              | 16,663 |   |                |   | 13,386 |                    |   |   | 24.5                |   |   |   | 4,296 |   |   |   | 6,392 |   |   |   | (32.8 | ) |
| Synthetic fiber monomers and polymers |   |              | 4,692  |   |                |   | 4,019  |                    |   |   | 16.7                |   |   |   | 6,519 |   |   |   | 8,052 |   |   |   | (19.0 | ) |
| Synthetic resins                      |   |              | 8,682  |   |                |   | 7,845  |                    |   |   | 10.7                |   |   |   | 8,073 |   |   |   | 10,097 |   |   |   | (20.0 | ) |
| Synthetic fiber                       |   |              | 1,418  |   |                |   | 1,353  |                    |   |   | 4.8                 |   |   |   | 9,140 |   |   |   | 10,488 |   |   |   | (12.9 | ) |
| Synthetic rubber                      |   |              | 1,119  |   |                |   | 988    |                    |   |   | 13.3                |   |   |   | 11,448 |   |   |   | 16,180 |   |   |   | (29.3 | ) |
| Chemical fertilizer                   |   |              | 1,769  |   |                |   | 1,659  |                    |   |   | 6.6                 |   |   |   | 1,657 |   |   |   | 1,729 |   |   |   | (4.2 | ) |

----

|   | D. | LIQUIDITY AND CAPITAL RESOURCES |
|--------|----|---------------------------------|

|                                                 |   | Year Ended December 31, |     |
|------------------------------------------------------|--------|-------------------------|----------|
| Cash flow data                                       |   | 2010                    |     |   | 2009 |   |
|                                                 |   | (RMB in millions)       |     |
| Net cash generated from operating activities         |   |                    | 170,333  |   |   |   | 165,513 |   |
| Net cash used in investing activities                |   |                    | (105,788 | ) |   |   | (117,355 | ) |
| Net cash used in financing activities                |   |                    | (56,294  | ) |   |   | (46,411 | ) |
| Net  increase in cash and cash equivalents |   |                    | 8,251    |   |   |   | 1,747 |   |

----

|                                |   | As of December 31, 2010 |    |
|-------------------------------------|--------|-------------------------|---------|
|                                |   | Total                   |    |   | less than1 year |   |   | 1-3 years |   |   | 4-5 years |   |   | After 5 years |   |
|                                |   |                    |    |   | (RMB in millions) |   |
| Contractual obligations(1)          |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term debt                     |   |                    | 30,633  |   |   |   | 30,633 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Long-term debt                      |   |                    | 201,061 |   |   |   | 9,996 |   |   |   | 65,144 |   |   |   | 60,561 |   |   |   | 65,360 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total contractual obligations       |   |                    | 231,694 |   |   |   | 40,629 |   |   |   | 65,144 |   |   |   | 60,561 |   |   |   | 65,360 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other commercial commitments        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating lease commitments         |   |                    | 273,601 |   |   |   | 10,555 |   |   |   | 19,598 |   |   |   | 19,156 |   |   |   | 224,292 |   |
| Capital commitments                 |   |                    | 176,430 |   |   |   | 139,377 |   |   |   | 37,053 |   |   |   | 0 |   |   |   | 0 |   |
| Exploration and production licenses |   |                    | 1,013   |   |   |   | 119 |   |   |   | 203 |   |   |   | 46 |   |   |   | 645 |   |
| Guarantees(2)                       |   |                    | 7,700   |   |   |   | 7,700 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total commercial commitments        |   |                    | 458,744 |   |   |   | 157,751 |   |   |   | 56,854 |   |   |   | 19,202 |   |   |   | 224,973 |   |

| (1) | Contractual obligations include the contractual obligations relating to interest payments.                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Guarantee is not limited by time, therefore specific payment due period is not applicable. As of December 31, 2010, we have not entered into any off-balance sheet arrangements other than guarantees given to banks in respect of banking facilities granted to certain parties. As of December 31, 2010, the maximum amount of potential future payments under the guarantees was RMB7.7 billion.  See Note 30 to the consolidated financial statements for further information of the guarantees. |

|                              |   | 2008                                  |   |   | 2009    |   |   | 2010 |   |   | Total   |   |
|-----------------------------------|--------|---------------------------------------|--------|--------|---------|--------|--------|------|--------|--------|---------|--------|
|                              |   | RMB                                   |   |   | Percent |   |   | RMB  |   |   | Percent |   |   | RMB |   |   | Percent |   |   | RMB |   |   | Percent |   |
|                              |   | (in billions, except percentage data) |   |
| Exploration and production . |   |                                  | 60.06  |   |    |   | 54.27  | %    |   |   | 54.27   |   |   |   | 48.14 | % |   |   | 52.68 |   |   |   | 46.35 | % |   |   | 167.01 |   |   |   | 49.55 | % |
| Refining.                         |   |                                  | 12.79  |   |    |   | 11.56  | %    |   |   | 15.47   |   |   |   | 13.72 | % |   |   | 20.02 |   |   |   | 17.62 | % |   |   | 48.28 |   |   |   | 14.32 | % |
| Marketing and distribution.       |   |                                  | 14.80  |   |    |   | 13.37  | %    |   |   | 16.28   |   |   |   | 14.44 | % |   |   | 26.17 |   |   |   | 23.03 | % |   |   | 57.25 |   |   |   | 16.99 | % |
| Chemicals.                        |   |                                  | 20.62  |   |    |   | 18.63  | %    |   |   | 25.21   |   |   |   | 22.36 | % |   |   | 12.89 |   |   |   | 11.34 | % |   |   | 58.72 |   |   |   | 17.42 | % |
| Corporate and others .            |   |                                  | 2.39   |   |    |   | 2.17   | %    |   |   | 1.51    |   |   |   | 1.34 | % |   |   | 1.89 |   |   |   | 1.66 | % |   |   | 5.79 |   |   |   | 1.72 | % |
| Total.                            |   |                                  | 110.66 |   |    |   | 100.0  | %    |   |   | 112.74  |   |   |   | 100.0 | % |   |   | 113.65 |   |   |   | 100.0 | % |   |   | 337.05 |   |   |   | 100.0 | % |

|   | · | Exploration and production. RMB52.7 billion was used in exploration and production segment to support the exploration and production capacity of Tahe, Shengli, Angola Block 18, Puguang, Erdos and other oil and gas fields, and the pipeline construction of Sichuan-to-East Gas Project. The production capacity of newly-built crude oil was 5.92 million tonnes per annum, and the production capacity of newly-built natural gas 7.056 billion cubic per annum. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Refining. RMB20.0 billion was used in our refining segment to support our strategic plan of refining development, increase the refining capacity, upgrade the refined oil products’ quality, restructure the low-quality crude oil’s adaptability, as well as construct the crude oil transportation and delivery system. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                  |
|   | · | Marketing and distribution. RMB26.2 billion was used in this segment to construct and acquire petrol and gas stations in key areas including highways, major cities and newly planned regions, accelerate the construction of oil products storage facilities and pipeline, and develop the refined oil products sales network.       |
|   |   |                                                                                                                                                                                                                                                                                                                                  |
|   | · | Chemicals. RMB12.9 billion was spent in this segment, including the complete construction on Tianjin and Zhenhai ethylene projects, and ongoing construction on Wuan ethylene and Yanshan butyl rubber projects.                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                  |
|   | · | Corporate and Others. RMB1.9 billion was used for scientific research equipment and construction of information systems.                                                                                                                                                                                                              |

|   | · | Exploration and production. The planned capital expenditure in 2011 for this segment is RMB54.3 billion. We expect to focus on the exploration and production of material oil fields in eastern China and Tahe oil fields, Angola Block 18, Yuanba gas field, and the construction of Shandong LNG project.                           |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                  |
|   | · | Refining. The planned capital expenditure in 2011 for this segment is RMB26.5 billion. We expect to develop the refining and upgrade the diesel quality of Beihai, Changling and Wuhan projects, and focus on the construction of Rizhao-Yizheng and Zhanjiang-Beihai crude oil pipelines and ancillary projects.                     |
|   |   |                                                                                                                                                                                                                                                                                                                                  |
|   | · | Marketing and distribution. The planned capital expenditure in 2011 for this segment is RMB21.3 billion. W expect to focus on the construction, acquisition and renovation of petrol and gas stations, and the construction of refined oil pipelines and ancillary oil depots in Yongshaojinyu, Pearl River Delta and Baihai-Nanjing. |
|   |   |                                                                                                                                                                                                                                                                                                                                  |
|   | · | Chemicals. The planned capital expenditure in 2011 for this segment is RMB19.2 billion. We expect to focus on Wuhan ethylene, Zhongyuan methanol to olefins, Yanshan butyl rubber, Qilu synthetic resin projects, and the construction of chemical raw materials and products logistics facilities.                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                  |
|   | · | Corporate and Others. The planned capital expenditure in 2011 for this segment is RMB2.8 billion. We expect to focus on scientific research equipment and construction of information systems.                                                                                                                                        |

| ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
|---------|--------------------------------------------|
|    |                                       |
|    | A.                                         | DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT |

----

| Name          | Age | Positions with Sinopec Corp.  |
|---------------|-----|------------------------------------|
| Su Shulin     | 48  | Chairman                           |
| Wang Tianpu   | 48  | Vice Chairman, President           |
| Zhang Yaocang | 57  | Vice Chairman                      |
| Zhang Jianhua | 46  | Director, Senior Vice President    |
| Wang Zhigang  | 53  | Director, Senior Vice President    |
| Cai Xiyou     | 49  | Director, Senior Vice President    |
| Cao Yaofeng   | 57  | Director                           |
| Li Chunguang  | 55  | Director                           |
| Dai Houliang  | 47  | Director, Senior Vice President    |
| Liu Yun       | 54  | Director                           |
| Li Deshui     | 66  | Independent Non-executive Director |
| Xie Zhongyu   | 67  | Independent Non-executive Director |
| Chen Xiaojin  | 66  | Independent Non-executive Director |
| Ma Weihua     | 62  | Independent Non-executive Director |
| Wu Xiaogen    | 45  | Independent Non-executive Director |

----

----

----

| Name           | Age | Position with the Company   |
|----------------|-----|---------------------------------------|
| Wang Zuoran    | 60  | Chairman of the Board of Supervisors  |
| Zhang Youcai   | 69  | Vice Chairman, Independent Supervisor |
| Geng Limin     | 56  | Supervisor                            |
| Zou Huiping    | 50  | Supervisor                            |
| Li Yonggui     | 70  | Independent Supervisor                |
| Zhou Shiliang  | 53  | Employee Representative Supervisor    |
| Chen Mingzheng | 53  | Employee Representative Supervisor    |
| Jiang Zhenying | 46  | Employee Representative Supervisor    |
| Yu Renming     | 47  | Employee Representative Supervisor    |

----

----

| Name           | Age | Positions with Sinopec Corp.   |
|----------------|-----|-------------------------------------|
| Wang Xinhua    | 55  | CFO                                 |
| Zhang Kehua    | 57  | Vice President                      |
| Zhang Haichao  | 53  | Vice President                      |
| Jiao Fangzheng | 48  | Vice President                      |
| Lei Dianwu     | 48  | Vice President                      |
| Ling Yiqun     | 48  | Vice President                      |
| Chen Ge        | 48  | Secretary of the Board of Directors |

----

|   | B. | COMPENSATION |
|--------|----|--------------|

----

| Name                     |   | Position with the Company             |   | Remuneration paid by the Company in 2010 |
|--------------------------|--------|---------------------------------------|--------|------------------------------------------|
|                     |   |                                  |   | (RMB in thousand)                        |
| Directors                |   |                                  |   |                                     |
| Su Shulin                |   | Chairman                              |   | -                                        |
| Wang Tianpu              |   | Vice Chairman, President              |   | 967.4                                    |
| Zhang Yaocang            |   | Vice Chairman                         |   | -                                        |
| Zhang Jianhua            |   | Director, Senior Vice President       |   | 967.4                                    |
| Wang Zhigang             |   | Director, Senior Vice President       |   | 967.4                                    |
| Cai Xiyou                |   | Director, Senior Vice President       |   | 967.4                                    |
| Cao Yaofeng              |   | Director                              |   | -                                        |
| Li Chunguang             |   | Director                              |   | -                                        |
| Dai Houliang             |   | Director, Senior Vice President       |   | 967.4                                    |
| Liu Yun                  |   | Director                              |   | -                                        |
| Li Deshui                |   | Independent Non-executive Director    |   | 240 (Director’s Fees)              |
| Xie Zhongyu              |   | Independent Non-executive Director    |   | 240 (Director’s Fees)              |
| Chen Xiaojin             |   | Independent Non-executive Director    |   | 240 (Director’s Fees)              |
| Ma Weihua(1)             |   | Independent Non-executive Director    |   | 140 (Director’s Fees)              |
| Wu Xiaogen(2)            |   | Independent Non-executive Director    |   | 140 (Director’s Fees)              |
| Liu Zhongli(3)           |   | Independent Non-executive Director    |   | 100 (Director’s Fees)              |
| Ye Qing(4)               |   | Independent Non-executive Director    |   | 100 (Director’s Fees)              |
|                     |   |                                  |   |                                     |
| Supervisors              |   |                                  |   |                                     |
| Wang Zuoran              |   | Chairman of the Board of Supervisors  |   | -                                        |
| Zhang Youcai             |   | Vice Chairman, Independent Supervisor |   | 240 (Supervisor’s Fees)            |
| Geng Limin               |   | Supervisor                            |   | -                                        |
| Zou Huiping              |   | Supervisor                            |   | 472.5                                    |
| Li Yonggui               |   | Independent Supervisor                |   | 240 (Supervisor’s Fees)            |
| Zhou Shiliang            |   | Employee Representative Supervisor    |   | 457.0                                    |
| Chen Mingzheng           |   | Employee Representative Supervisor    |   | 479.4                                    |
| Jiang Zhenying(5)        |   | Employee Representative Supervisor    |   | 28.7                                     |
| Yu Renming(6)            |   | Employee Representative Supervisor    |   | 31.8                                     |
| Liu Xiaohong(7)          |   | Employee Representative Supervisor    |   | 121.5                                    |
| Su Wensheng(8)           |   | Employee Representative Supervisor    |   | 121.5                                    |
| Cui Guoqi(9)             |   |                                  |   | 383.5                                    |
| Chang Zhenyong(10)       |   |                                  |   | 397.9                                    |
|                     |   |                                  |   |                                     |
| Other Executive officers |   |                                  |   |                                     |

----

| Wang Xinhua     |   | CFO                                 |   | 522.6 |
|-----------------|--------|-------------------------------------|--------|-------|
| Zhang Kehua     |   | Vice President                      |   | 566.9 |
| Zhang Haichao   |   | Vice President                      |   | 553.7 |
| Jiao Fangzheng  |   | Vice President                      |   | 541.8 |
| Lei Dianwu      |   | Vice President                      |   | 548.2 |
| Ling Yiquan(11) |   | Vice President                      |   | 338.7 |
| Chen Ge         |   | Secretary of the Board of Directors |   | 474.9 |

| (1)  | Ma Weihua was appointed as an independent non-executive director on May 19, 2010.                                             |
|------|-------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Wu Xiaogen was appointed as an independent non-executive director on May 19, 2010.                                            |
| (3)  | Liu Zhongli resigned as an independent non-executive director on April 28, 2010.                                              |
| (4)  | Ye Qing resigned as an independent non-executive director on April 28, 2010.                                                  |
| (5)  | Jiang Zhenying was appointed as an employee representative supervisor on December 16, 2010.                                   |
| (6)  | Yu Renming was appointed as an employee representative supervisor on December 16, 2010.                                       |
| (7)  | Liu Xiaohong resigned as an employee representative supervisor on April 28, 2010.                                             |
| (8)  | Su Wensheng resigned as an employee representative supervisor on April 28, 2010.                                              |
| (9)  | Cui Guoqi was appointed as an employee representative supervisor on April 28, 2010 and he resigned on December 16, 2010.      |
| (10) | Chang Zhenyong was appointed as an employee representative supervisor on April 28, 2010 and he resigned on December 16, 2010. |
| (11) | Ling Yiquan was appointed as a vice president in July 2010.                                                                   |

|   | C. | BOARD PRACTICE |
|--------|----|----------------|

|   | · | to propose the appointment or replacement of the independent auditor;                                 |
|--------|--------|-------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                  |
|   | · | to oversee the internal auditing system and its implementation;                                       |
|   |   |                                                                                                  |
|   | · | to coordinate the communication between the internal auditing department and the independent auditor; |
|   |   |                                                                                                  |
|   | · | to examine and approve financial information and it disclosure; and                                   |
|   |   |                                                                                                  |
|   | · | to examine the internal control system.                                                               |

|   | · | to research on evaluation criteria for directors and the president, to conduct their evaluations and make necessary suggestions; and                                                                       |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                       |
|   | · | to research on and review the policies and proposals in respect of the remuneration of directors, supervisors, president, vice-president, Chief Financial Officer and secretary of the board of directors. |

----

|   | D. | EMPLOYEES |
|--------|----|-----------|

|   By Segment     |   | Number of Employees |    |   | Percentage of Total Number of Employees (%) |   |
|----------------------------|--------|---------------------|---------|--------|---------------------------------------------|--------|
| Exploration and Production |   |                | 147,875 |   |                                        |   | 39.6 |   |
| Refining                   |   |                | 84,997  |   |                                        |   | 22.8 |   |
| Marketing and Distribution |   |                | 64,517  |   |                                        |   | 17.3 |   |
| Chemicals                  |   |                | 65,623  |   |                                        |   | 17.6 |   |
| Corporate and Others       |   |                | 10,363  |   |                                        |   | 2.7 |   |
| Total                      |   |                | 373,375 |   |                                        |   | 100 |   |

| By Employee's Scope of Work |   | Number of Employees |    |   | Percentage of Total Number of Employees (%) |   |
|-----------------------------|--------|---------------------|---------|--------|---------------------------------------------|--------|
| Production                  |   |                | 188,470 |   |                                        |   | 50.5 |   |
| Sales                       |   |                | 55,949  |   |                                        |   | 15.0 |   |
| Technical                   |   |                | 49,819  |   |                                        |   | 13.3 |   |
| Finance                     |   |                | 9,603   |   |                                        |   | 2.6 |   |
| Administration              |   |                | 29,870  |   |                                        |   | 8.0 |   |
| Others                      |   |                | 39,664  |   |                                        |   | 10.6 |   |
| Total                       |   |                | 373,375 |   |                                        |   | 100 |   |

| By Education                                     |   | Number of Employees |    |   | Percentage of Total Number of Employees (%) |   |
|--------------------------------------------------|--------|---------------------|---------|--------|---------------------------------------------|--------|
| Master's degree and above                        |   |                | 9,689   |   |                                        |   | 2.6 |   |
| University                                       |   |                | 78,217  |   |                                        |   | 21.0 |   |
| Tertiary education                               |   |                | 78,443  |   |                                        |   | 21.0 |   |
| Technical/polytechnic school                     |   |                | 32,513  |   |                                        |   | 8.7 |   |
| Secondary, technical/polytechnic school or below |   |                | 174,513 |   |                                        |   | 46.7 |   |
| Total                                            |   |                | 373,375 |   |                                        |   | 100 |   |

|   | E. | SHARE OWNERSHIP |
|--------|----|-----------------|

----

| ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
|---------|---------------------------------------------------|
|    |                                              |
|    | A.                                                | MAJOR SHAREHOLDERS |

| Shareholder           |   | Number ofShares Owned(in millions) |      |   | Percentage of Ownership (%) |   |
|-----------------------|--------|------------------------------------|-----------|--------|-----------------------------|--------|
| Sinopec Group Company |   |                               | 65,758.04 |   |                        |   | 75.84 |   |

|   | B. | RELATED PARTY TRANSACTIONS |
|--------|----|----------------------------|

----

|   | C. | INTERESTS OF EXPERTS AND COUNSEL |
|--------|----|----------------------------------|

| ITEM 8. | FINANCIAL INFORMATION |
|---------|-----------------------|
|    |                  |
|    | A.                    | CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION |

|   | B. | SIGNIFICANT CHANGES |
|--------|----|---------------------|

| ITEM 9. | THE OFFER AND LISTING |
|---------|-----------------------|
|    |                  |
|    | A.                    | OFFER AND LISTING DETAILS |

----

|           |           | The Stock Exchange of Hong Kong |   | The New York Stock Exchange |   | The Shanghai Stock Exchange |
|----------------|----------------|---------------------------------|--------|-----------------------------|--------|-----------------------------|
| Period         |           | High                            |   | Low                         |   | High                        |   | Low |   | High |   | Low |
| Past 6 months  |           | (HK dollar per H share)         |   | (US dollar per ADS)         |   | (RMB per A share)           |
|           | March          |                            | 8.06   |                        | 7.47   |                        | 103.19 |   | 97.18 |   | 8.84 |   | 8.42 |
|           | February       |                            | 8.75   |                        | 7.66   |                        | 111.89 |   | 99.74 |   |  9.27 |   | 8.47 |
| 2011           | January        |                            | 8.59   |                        | 7.57   |                        | 110.22 |   | 97.63 |   | 9.00 |   | 8.08 |
|           | December       |                            | 7.45   |                        | 7.08   |                        | 96.00 |   | 91.15 |   | 8.36 |   | 7.99 |
|           | November       |                            | 7.94   |                        | 7.17   |                        | 102.69 |   | 92.80 |   | 9.49 |   | 8.09 |
| 2010           | October        |                            | 7.65   |                        | 6.76   |                        | 98.81 |   | 87.78 |   | 9.42 |   | 8.44 |
|           |           |                            |   |                        |   |                        |   |   |   |   |   |   |   |
| Quarterly Data |           |                            |   |                        |   |                        |   |   |   |   |   |   |
| 2010           | Fourth Quarter |                            | 7.94   |                        | 6.76   |                        | 102.69 |   | 87.78 |   | 9.49 |   | 7.99 |
|           | Third Quarter  |                            | 6.88   |                        | 6.01   |                        | 88.28 |   | 76.74 |   | 8.91 |   | 7.77 |
|           | Second Quarter |                            | 6.70   |                        | 5.81   |                        | 87.40 |   | 73.80 |   | 12.00 |   | 7.82 |
|           | First Quarter  |                            | 6.82   |                        | 5.75   |                        | 88.20 |   | 73.86 |   | 13.90 |   | 10.82 |
| 2009           | Fourth Quarter |                            | 7.06   |                        | 6.35   |                        | 92.16 |   | 82.05 |   | 14.14 |   | 11.46 |
|           | Third Quarter  |                            | 7.15   |                        | 5.87   |                        | 93.50 |   | 74.76 |   | 15.42 |   | 10.78 |
|           | Second Quarter |                            | 6.50   |                        | 5.15   |                        | 85.82 |   | 67.45 |   | 10.84 |   | 8.78 |
|           | First Quarter  |                            | 5.26   |                        | 3.65   |                        | 67.70 |   | 47.08 |   | 9.27 |   | 7.06 |
|           |           |                            |   |                        |   |                        |   |   |   |   |   |   |   |
| Annual Data    |           |                            |   |                        |   |                        |   |   |   |   |   |   |
| 2010           |           | 7.94                            |   | 5.75                        |   | 102.69                      |   | 73.80 |   | 13.90 |   | 7.77 |
| 2009           |           | 7.15                            |   | 3.65                        |   | 93.50                       |   | 47.08 |   | 15.42 |   | 7.06 |
| 2008           |           | 11.66                           |   | 3.76                        |   | 146.28                      |   | 50.57 |   | 24.38 |   | 6.67 |
| 2007           |           | 12.96                           |   | 5.67                        |   | 178.83                      |   | 72.92 |   | 28.49 |   | 8.37 |
| 2006           |           | 7.2                             |   | 3.775                       |   | 92.64                       |   | 47.40 |   | 9.15 |   | 4.58 |
| 2005           |           | 3.90                            |   | 2.75                        |   | 50.58                       |   | 35.55 |   | 4.66 |   | 3.25 |

| ITEM 10. | ADDITIONAL INFORMATION |
|----------|------------------------|
|     |                   |
|     | A.                     | SHARE CAPITAL |

|   | B. | MEMORANDUM AND ARTICLES OF ASSOCIATION |
|--------|----|----------------------------------------|

----

----

|   | · | recovery of losses, if any;                                                          |
|--------|--------|--------------------------------------------------------------------------------------|
|   |   |                                                                                 |
|   | · | allocations to the statutory surplus  reserve fund; and                    |
|   |   |                                                                                 |
|   | · | allocations to a discretionary surplus reserve fund if approved by the shareholders. |

|   | · | where the number of directors is less than the number stipulated in the PRC Company Law or two-thirds of the number specified in our articles of association; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                          |
|   | · | where our unrecovered losses reach one-third of the total amount of our actually paid-in share capital;                                                       |
|   |   |                                                                                                                                                          |
|   | · | where shareholder(s) holding 10% or more of our issued and outstanding voting shares request(s) in writing the convening of an extraordinary general meeting; |
|   |   |                                                                                                                                                          |
|   | · | whenever our board deems necessary or our board of supervisors so requests; or                                                                                |
|   |   |                                                                                                                                                          |
|   | · | circumstances provided in the articles of association.                                                                                                        |

----

|   | · | an increase or reduction of our share capital or the issue of shares, including stock distributions, of any class, warrants and other similar securities;                                                                              |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                   |
|   | · | issuance of debentures;                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                   |
|   | · | our division, merger, dissolution and liquidation; (Shareholders who object to a proposed division or merger are entitled to demand that either we or the shareholders who approved the merger purchase their shares at a fair price.) |
|   |   |                                                                                                                                                                                                                                   |
|   | · | amendments to our articles of association and its appendices;                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                   |
|   | · | change of our company form;                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                   |
|   | · | acquisition or disposal of material assets or provision of material guarantee within one year, with the value exceeding 30% of our latest audited total assets;                                                                        |

----

|   | · | any stock incentive plan;                                                                                                                                                                                                                                                                                                       |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                            |
|   | · | any other matters required by laws and regulations or our articles of association and its appendices or considered by the shareholders in a general meeting and which they have resolved by way of an ordinary resolution to be of a nature which may have a material impact on us and should be adopted by special resolution. |

|   | · | varying the rights of existing classes of shares; |
|--------|--------|---------------------------------------------------|
|   |   |                                              |
|   | · | voting rights;                                    |
|   |   |                                              |
|   | · | our power to purchase our own shares;             |
|   |   |                                              |
|   | · | rights of non-controlling shareholders; and       |
|   |   |                                              |
|   | · | procedure on liquidation.                         |

|   | · | we issue domestic ordinary shares and/or overseas-listed foreign-invested shares, either separately or concurrently, in numbers not exceeding 20% of the number of domestic ordinary shares and overseas-listed foreign-invested shares then in issue, respectively, in any 12-month period, as approved by a special resolution of the shareholders; or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                     |
|   | · | if our plans for issuing domestic ordinary shares and overseas-listed foreign-invested sharesupon its establishment are implemented within fifteen months of the date of approval by the China Securities Regulatory Commission.                                                                                                                         |

----

|   | · | to relieve a director or supervisor from his or her duty to act honestly in our best interests;                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | · | to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of our assets in any way, including, without limitation, opportunities which may benefit us; or                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | · | to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of the individual rights of other shareholders, including, without limitation, rights to distributions and voting rights (save according to a restructuring of our company which has been submitted for approval by the shareholders in a general meeting in accordance with our articles of association and its appendices). |

|   | · | is in a position to elect half or more of the board of directors;                                        |
|--------|--------|----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                     |
|   | · | has the power to exercise, or to control the exercise of, 30% or more of our voting rights;              |
|   |   |                                                                                                     |
|   | · | acting separately or in concert with others, holds 30% or more of our issued and outstanding shares,; or |
|   |   |                                                                                                     |
|   | · | acting separately or in concert with others, has de facto control of us in any other way.                |

|   | · | is necessary to enable them and the public to appraise the position of us and our subsidiaries;       |
|--------|--------|-------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                  |
|   | · | is necessary to avoid the establishment of a false market in its securities; and                      |
|   |   |                                                                                                  |
|   | · | might be reasonably expected materially to affect market activity in and the price of its securities. |

----

|   | · | Shareholders holding 10 percent or more of the shares of the company are entitled to petition the court to dissolve the company if (i) the company is in serious operational difficulties; (ii) its continuing existence will seriously prejudice the interests of the shareholders; and (iii) such difficulties cannot be resolved through any other means;                                                                                                                                                                                                                                                                                                                          |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | · | Shareholders holding 1 percent or more of the shares of the company for more than 180 consecutive days are entitled to request the board of supervisors (in terms of directors and senior management) or the board of directors (in terms of supervisors) to bring legal proceedings, or bring legal proceedings in their own name on behalf of the company where it is in emergency and the company will be subject to irreparable loss if not to do so, against directors, supervisors or senior management who fail to comply with the laws and regulations or the company’s articles of association in the course of performing their duties and cause loss to the company; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | · | Shareholders who oppose the company’s decision on merger or separation are entitled to request the company to repurchase their shares; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | · | Shareholders holding 10 percent or more of the voting rights of the company are entitled to convene a shareholders’ meeting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

|   | · | between a holder of overseas-listed foreign-invested shares and us;                                                                                                       |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                      |
|   | · | between a holder of overseas-listed foreign-invested shares and any of our directors, supervisors, general managers, deputy general managers or other senior officers; or |
|   |   |                                                                                                                                                                      |
|   | · | between a holder of overseas-listed foreign-invested shares and a holder of domestic ordinary shares                                                                      |

----

|   | · | any relevant transfer fee is paid;                                                                                                                                                                                |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                              |
|   | · | the instrument of transfer is only related to H shares listed in Hong Kong;                                                                                                                                       |
|   |   |                                                                                                                                                                                                              |
|   | · | the instrument of transfer is accompanied by the share certificates to which it relates, or such other evidence is given as may be reasonably necessary to show the right of the transferor to make the transfer; |
|   |   |                                                                                                                                                                                                              |
|   | · | the stamp duty which is chargeable on the instrument of transfer has already been paid;                                                                                                                           |
|   |   |                                                                                                                                                                                                              |
|   | · | if it is intended that the shares be transferred to joint owners, the maximum number of joint owners shall not be more than four (4); and                                                                         |
|   |   |                                                                                                                                                                                                              |
|   | · | the Company does not have any lien on the relevant shares.                                                                                                                                                        |

|   | C. | MATERIAL CONTRACTS |
|--------|----|--------------------|

|   | D. | EXCHANGE CONTROLS |
|--------|----|-------------------|

----

|   | E. | TAXATION |
|--------|----|----------|

----

|   | · | an individual who is a citizen or resident of the United States;                                                                                                                                                                |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                            |
|   | · | a corporation created in or organized under the laws of, the United States or any State or political subdivision thereof;                                                                                                       |
|   |   |                                                                                                                                                                                                                            |
|   | · | an estate the income of which is includible in gross income for United States federal income tax purposes regardless of its source;                                                                                             |
|   |   |                                                                                                                                                                                                                            |
|   | · | a trust the administration of which is subject to the primary supervision of a United States court and which has one or more United States persons who have the authority to control all substantial decisions of the trust; or |
|   |   |                                                                                                                                                                                                                            |
|   | · | a trust that has elected to be treated as a United States person under the Code.                                                                                                                                                |

----

----

|   | F. | DIVIDENDS AND PAYING AGENTS |
|--------|----|-----------------------------|

|   | G. | STATEMENT BY EXPERTS |
|--------|----|----------------------|

|   | H. | DOCUMENTS ON DISPLAY |
|--------|----|----------------------|

|   | I. | SUBSIDIARY INFORMATION |
|--------|----|------------------------|

| ITEM 11. | QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK |
|----------|------------------------------------------------------------|

----

| (RMB equivalent in millions, except exchange rate) |                   |
|----------------------------------------------------|------------------------|
|                                               |                   | As of December 31, 2010 |   |
|                                               | Expected Maturity Date |   |   | Total carrying amount |   |   | Fair value |   |
|                                               |                   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2015 |   |   | Thereafter |   |   |   |   |   |   |   |
| Assets                                             |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalent                           |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US Dollar                                       |                   |   | 428 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 428 |   |   |   | 428 |   |
| In HK Dollar                                       |                   |   | 31 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 31 |   |   |   | 31 |   |
| In Japanese Yen                                    |                   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10 |   |   |   | 10 |   |
| In Euro                                            |                   |   | 103 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 103 |   |   |   | 103 |   |
| Time deposits with financial institutions          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US Dollar                                       |                   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3 |   |   |   | 3 |   |
|                                               |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                        |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debts in US Dollar                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                         |                   |   | 113 |   |   |   | 55 |   |   |   | 55 |   |   |   | 55 |   |   |   | 55 |   |   |   | 216 |   |   |   | 549 |   |   |   | 564 |   |
| Average interest rate                              |                   |   | 1.5 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   |   |   |   |   |   |   |
| Variable rate                                      |                   |   | 18,979 |   |   |   | 3 |   |   |   | 3 |   |   |   | 4 |   |   |   | 3 |   |   |   | 3 |   |   |   | 18,992 |   |   |   | 18,992 |   |
| Average interest rate(1)                           |                   |   | 1.6 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   |   |   |   |   |   |   |
| Debts in Japanese Yen                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                         |                   |   | 85 |   |   |   | 85 |   |   |   | 85 |   |   |   | 85 |   |   |   | 85 |   |   |   | 619 |   |   |   | 1,044 |   |   |   | 1,172 |   |
| Average interest rate                              |                   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   |   |   |   |   |   |   |
| Variable rate                                      |                   |   | 223 |   |   |   | 223 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 446 |   |   |   | 446 |   |
| Average interest rate(1)                           |                   |   | 2.9 | % |   |   | 2.9 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in HK Dollar                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                         |                   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,667 |   |   |   | - |   |   |   | - |   |   |   | 10,667 |   |   |   | 10,667 |   |
| Average interest rate                              |                   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4.2 | % |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Variable rate                                      |                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Average interest rate(1)                           |                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in Euro                                      |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                         |                   |   | 27 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 27 |   |   |   | 27 |   |
| Average interest rate                              |                   |   | 6.6 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |

----

| (RMB equivalent in millions, except exchange rate) |
|----------------------------------------------------|

|                                      |   | As of December 31, 2009 |   |
|-------------------------------------------|--------|-------------------------|--------|
|                                      |   | Expected Maturity Date  |   |   | Total carrying amount |   |   | Fair value |   |
|                                      |   | 2010                    |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | Thereafter |   |   |   |   |   |   |   |
| Assets                                    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalent                  |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US Dollar                              |   |                    | 2,184  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,184 |   |   |   | 2,184 |   |
| In HK Dollar                              |   |                    | 149    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 149 |   |   |   | 149 |   |
| In Japanese Yen                           |   |                    | 14     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14 |   |   |   | 14 |   |
| In Euro                                   |   |                    | 129    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 129 |   |   |   | 129 |   |
| Time deposits with financial institutions |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US Dollar                              |   |                    | 4      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4 |   |   |   | 4 |   |
|                                      |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                               |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debts in US Dollar                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 1,108  |   |   |   | 71 |   |   |   | 57 |   |   |   | 57 |   |   |   | 57 |   |   |   | 279 |   |   |   | 1,629 |   |   |   | 1,644 |   |
| Average interest rate                     |   |                    | 1.0    | % |   |   | 1.5 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | 18,216 |   |   |   | 6,900 |   |   |   | 4 |   |   |   | 3 |   |   |   | 4 |   |   |   | 2 |   |   |   | 25,129 |   |   |   | 25,129 |   |
| Average interest rate(2)                  |   |                    | 1.4    | % |   |   | 2.4 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   |   |   |   |   |   |   |
| Debts in Japanese Yen                     |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 104    |   |   |   | 74 |   |   |   | 74 |   |   |   | 74 |   |   |   | 74 |   |   |   | 654 |   |   |   | 1,054 |   |   |   | 1,172 |   |
| Average interest rate                     |   |                    | 2.6    | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | 202    |   |   |   | 202 |   |   |   | 202 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 606 |   |   |   | 606 |   |
| Average interest rate(2)                  |   |                    | 2.9    | % |   |   | 2.9 | % |   |   | 2.9 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in HK Dollar                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,371 |   |   |   | - |   |   |   | 10,371 |   |   |   | 10,371 |   |
| Average interest rate                     |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4.2 | % |   |   | - |   |   |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Average interest rate(2)                  |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in Euro                             |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 85     |   |   |   | 31 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 116 |   |   |   | 120 |   |
| Average interest rate                     |   |                    | 6.6    | % |   |   | 6.6 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |

| (RMB equivalent in millions, except exchange rate) |                   |
|----------------------------------------------------|------------------------|
|                                               |                   | As of December 31, 2010 |   |
|                                               | Expected Maturity Date |   |   | Total carrying amount |   |   | Fair value |   |
|                                               |                   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2015 |   |   | Thereafter |   |   |   |   |   |   |   |
| Assets                                             |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalent                           |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In Renminbi                                        |                   |   | 16,436 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,436 |   |   |   | 16,436 |   |
| In US Dollar                                       |                   |   | 428 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 428 |   |   |   | 428 |   |
| In HK Dollar                                       |                   |   | 31 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 31 |   |   |   | 31 |   |
| In Japanese Yen                                    |                   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10 |   |   |   | 10 |   |
| In Euro                                            |                   |   | 103 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 103 |   |   |   | 103 |   |
| Time deposits with financial institutions          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| In Reminbi               |   |   | 1,129  |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 1,129   |   |   |   | 1,129   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| In US Dollar             |   |   | 3      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 3       |   |   |   | 3       |   |
|                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Liabilities              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Debts in Reminbi         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Fixed rate               |   |   | 12,855 |   |   |   | 38,580 |   |   |   | 60     |   |   |   | 29,513 |   |   |   | 11,143 |   |   |   | 61,360 |   |   |   | 153,511 | (2)    |   |   | 152,360 |   |
| Average interest rate    |   |   | 3.2    | %      |   |   | 3.0    | %      |   |   | 3.0    | %      |   |   | 3.0    | %      |   |   | 4.5    | %      |   |   | 2.0    | %      |   |   |    |   |   |   |    |   |
| Variable rate            |   |   | 3,545  |   |   |   | 4,210  |   |   |   | 15,305 |   |   |   | 1,078  |   |   |   | 529    |   |   |   | -      |   |   |   | 24,667  |   |   |   | 24,667  |   |
| Average interest rate(1) |   |   | 5.1    | %      |   |   | 5.1    | %      |   |   | 5.1    | %      |   |   | 6.0    | %      |   |   | 6.0    | %      |   |   | -      |   |   |   |    |   |   |   |    |   |
| Debts in US Dollar       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Fixed rate               |   |   | 113    |   |   |   | 55     |   |   |   | 55     |   |   |   | 55     |   |   |   | 55     |   |   |   | 216    |   |   |   | 549     |   |   |   | 564     |   |
| Average interest rate    |   |   | 1.5    | %      |   |   | 1.4    | %      |   |   | 1.4    | %      |   |   | 1.4    | %      |   |   | 1.4    | %      |   |   | 1.4    | %      |   |   |    |   |   |   |    |   |
| Variable rate            |   |   | 18,979 |   |   |   | 3      |   |   |   | 3      |   |   |   | 4      |   |   |   | 3      |   |   |   | -      |   |   |   | 18,992  |   |   |   | 18,992  |   |
| Average interest rate(1) |   |   | 1.6    | %      |   |   | 4.9    | %      |   |   | 4.9    | %      |   |   | 4.9    | %      |   |   | 4.9    | %      |   |   | -      |   |   |   |    |   |   |   |    |   |
| Debts in Japanese Yen    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Fixed rate               |   |   | 85     |   |   |   | 85     |   |   |   | 85     |   |   |   | 85     |   |   |   | 85     |   |   |   | 619    |   |   |   | 1,044   |   |   |   | 1,172   |   |
| Average interest rate    |   |   | 2.6    | %      |   |   | 2.6    | %      |   |   | 2.6    | %      |   |   | 2.6    | %      |   |   | 2.6    | %      |   |   | 2.6    | %      |   |   |    |   |   |   |    |   |
| Variable rate            |   |   | 223    |   |   |   | 223    |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 446     |   |   |   | 446     |   |
| Average interest rate(1) |   |   | 2.9    | %      |   |   | 2.9    | %      |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |    |   |   |   |    |   |
| Debts in HK Dollar       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Fixed rate               |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 10,667 |   |   |   | -      |   |   |   | -      |   |   |   | 10,667  |   |   |   | 10,667  |   |
| Average interest rate    |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 4.2    | %      |   |   | -      |   |   |   | -      |   |   |   |    |   |   |   |    |   |
| Variable rate            |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -       |   |   |   | -       |   |
| Average interest rate(1) |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |    |   |   |   |    |   |
| Debts in Euro            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Fixed rate               |   |   | 27     |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 27      |   |   |   | 27      |   |
| Average interest rate    |   |   | 6.6    | %      |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |    |   |   |   |    |   |

| (RMB equivalent in millions, except exchange rate) |                   |
|----------------------------------------------------|------------------------|
|                                               |                   | As of December 31, 2009 |   |
|                                               | Expected Maturity Date |   |   | Total carrying amount |   |   | Fair value |   |
|                                               |                   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | Thereafter |   |   |   |   |   |   |   |
| Assets                                             |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalent                           |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In Renminbi                                        |                   |   | 6,306 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,306 |   |   |   | 6,306 |   |
| In US Dollar                                       |                   |   | 2,184 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,184 |   |   |   | 2,184 |   |
| In HK Dollar                                       |                   |   | 149 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 149 |   |   |   | 149 |   |
| In Japanese Yen                                    |                   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14 |   |   |   | 14 |   |
| In Euro                                            |                   |   | 129 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 129 |   |   |   | 129 |   |
| Time deposits with financial institutions          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In Reminbi                                         |                   |   | 1,232 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,232 |   |   |   | 1,232 |   |
| In US Dollar                                       |                   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4 |   |   |   | 4 |   |
|                                               |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                        |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debts in Renminbi                                  |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                         |                   |   | 50,947 |   |   |   | 192 |   |   |   | 38,580 |   |   |   | 60 |   |   |   | 28,392 |   |   |   | 52,364 |   |   |   | 170,535 | (4) |   |   | 169,730 |   |
| Average interest rate                              |                   |   | 2.8 | % |   |   | 2.8 | % |   |   | 2.8 | % |   |   | 2.5 | % |   |   | 2.5 | % |   |   | 1.6 | % |   |   |   |   |   |   |   |   |
| Variable rate                                      |                   |   | 4,554 |   |   |   | 3,513 |   |   |   | 4,108 |   |   |   | 5,200 |   |   |   | 1,126 |   |   |   | - |   |   |   | 18,501 |   |   |   | 18,501 |   |
| Average interest rate(3)                           |                   |   | 5.4 | % |   |   | 5.2 | % |   |   | 5.2 | % |   |   | 5.3 | % |   |   | 5.2 | % |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in US Dollar                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                         |                   |   | 1,108 |   |   |   | 71 |   |   |   | 57 |   |   |   | 57 |   |   |   | 57 |   |   |   | 279 |   |   |   | 1,629 |   |   |   | 1,644 |   |
| Average interest rate                              |                   |   | 1.0 | % |   |   | 1.5 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   | 1.4 | % |   |   |   |   |   |   |   |   |
| Variable rate                                      |                   |   | 18,216 |   |   |   | 6,900 |   |   |   | 4 |   |   |   | 3 |   |   |   | 4 |   |   |   | 2 |   |   |   | 25,129 |   |   |   | 25,129 |   |
| Average interest rate(3)                           |                   |   | 1.4 | % |   |   | 2.4 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   | 4.9 | % |   |   |   |   |   |   |   |   |
| Debts in Japanese Yen                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                         |                   |   | 104 |   |   |   | 74 |   |   |   | 74 |   |   |   | 74 |   |   |   | 74 |   |   |   | 654 |   |   |   | 1,054 |   |   |   | 1,172 |   |
| Average interest rate                              |                   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   | 2.6 | % |   |   |   |   |   |   |   |   |
| Variable rate                                      |                   |   | 202 |   |   |   | 202 |   |   |   | 202 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 606 |   |   |   | 606 |   |
| Average interest rate(3)                           |                   |   | 2.9 | % |   |   | 2.9 | % |   |   | 2.9 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in HK Dollar                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                         |                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,371 |   |   |   | - |   |   |   | 10,371 |   |   |   | 10,371 |   |
| Average interest rate                              |                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4.2 | % |   |   | - |   |   |   |   |   |   |   |   |   |
| Variable rate                                      |                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

----

| Average interest rate(3) |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |   |   |   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Debts in Euro            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate               |   |   | 85     |   |   |   | 31     |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 116    |   |   |   | 120 |   |
| Average interest rate    |   |   | 6.6    | %      |   |   | 6.6    | %      |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |   |   |   |   |   |   |

| ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
|----------|--------------------------------------------------------|
|     |                                                   |
|     | A.                                                     | Debt Securities |

|   | B. | Warrants and Rights |
|--------|----|---------------------|

|   | C. | Other Securities |
|--------|----|------------------|

|   | D. | American Depositary Shares |
|--------|----|----------------------------|

| Services                                                                                          | Fees                                                           |
|---------------------------------------------------------------------------------------------------|----------------------------------------------------------------|
| Issuance of ADSs                                                                                  | $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) issued   |
| Cancellation of ADSs                                                                              | $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) canceled |
| Distribution of cash dividends or other cash distributions                                        | $2.00 (or less) per 100 ADSs (or portion of 100 ADSs) held     |
| Distribution of ADSs pursuant to stock dividends, free stock distributions or exercises of rights | $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) held     |
| Distribution of securities other than ADSs or rights to purchase additional ADSs                  | $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) held     |

|   | · | Taxes (including relevant interests and fines) and other governmental charges; |
|--------|--------|--------------------------------------------------------------------------------|

----

|   | · | such registration fees as may from time to time be in effect, for the registration of deposited securities in the register of members, or for the registration of transfers of deposited securities to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                       |
|   | · | such cable, telex and facsimile transmission expenses as are expressly provided in the Deposit Agreement;                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                       |
|   | · | such expenses as are incurred by the Depositary in the conversion of foreign currency;                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                       |
|   | · | such expenses as are incurred with the compliance with the foreign currency control, ADSs and other deposited securities related laws, regulations and rules; and                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                       |
|   | · | any other charge payable by the Depositary, any of the Depositary's agents, including the Custodian, Depositary, or the agents of the Custodian or Depositary, in connection with the servicing of deposited securities.                                                                                                   |

|   | · | reimbursement of application fees: US$50,733.56                                                                                                                 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                            |
|   | · | reimbursement of data infrastructure fees: US$4,416.04                                                                                                          |
|   |   |                                                                                                                                                            |
|   | · | reimbursement of proxy procedure fees: US$164,126.93                                                                                                            |
|   |   |                                                                                                                                                            |
|   | · | reimbursement of investor relations expenses (including expenses related to non-deal road show, investor meeting and investor relations agency) : US$274,085.66 |
|   |   |                                                                                                                                                            |
|   | · | the accounting committee and accounting standard committee of public company: US$22,656.09                                                                      |
|   |   |                                                                                                                                                            |
|   | · | Total: US$516,018.28                                                                                                                                            |

| ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
|----------|-------------------------------------------------|

| ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
|----------|------------------------------------------------------------------------------|
|     |                                                                         |
|     | A.                                                                           | MATERIAL MODIFICATIONS TO THE RIGHTS TO SECURITIES HOLDERS |

|   | B. | USE OF PROCEEDS |
|--------|----|-----------------|

| ITEM 15. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

----

----

| ITEM 16.  | RESERVED                         |
|-----------|----------------------------------|
|      |                             |
| ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |

| ITEM 16B. | CODE OF ETHICS |
|-----------|----------------|

| ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
|-----------|----------------------------------------|

|   |   | Audit Fees    |   | Audit-Related Fees |   | Tax Fees |   | Other Fees |
|--------|--------|---------------|--------|--------------------|--------|----------|--------|------------|
| 2009   |   | RMB84 million |   | —            |   | —  |   | —    |
| 2010   |   | RMB80 million |   | —            |   | —  |   | —    |

----

| ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
|-----------|------------------------------------------------------------|

| ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
|-----------|-----------------------------------------------------------------------------|

| ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
|-----------|----------------------------------------------------|

| ITEM 16G. | COMPARISON OF NEW YORK STOCK EXCHANGE CORPORATE GOVERNANCE RULES AND CHINA CORPORATE GOVERNANCE RULES FOR LISTED COMPANIES |
|-----------|----------------------------------------------------------------------------------------------------------------------------|

|   NYSE corporate governance rules                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Corporate governance rules applicable to thedomestically listed companies in China and theCompany’s governance practices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Corporate governance guidelines                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Listed companies must adopt and disclose corporate governance guidelines, involving director qualification standards, director compensation, director continuing education, annual performance evaluation of the board of directors, etc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | CSRC (China Securities Regulatory Commission) has issued the Corporate Governance Rules, prescribing detailed guidelines on directors of the listed companies, including director selection, the structure of the board of directors and director performance evaluation etc. The Company Law of PRC has specific regulations on the directors’ qualification. Furthermore, CSRC promulgates the guidelines on the senior management training and organizes the relevant training. The Company has complied with the above mentioned laws or rules.                                                                                                                                                                                                                                                                |
| Director Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| A listed company must have a majority of independent directors on its board of directors. No director qualifies as “independent’’ unless the board of directors affirmatively determines that the director has no material relationship with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with the company). In addition, a director must meet certain standards to be deemed independent. For example, a director is not independent if the director is, or has been within the last three years, an employee of the listed company, or if the director has received, during any twelve-month period within the last three years, more than US$120,000 in direct compensation from the listed company. To empower non-management directors to serve as a more effective check on management, the non-management directors of each listed company must meet at regularly scheduled executive sessions without management.  |   | It is required in China that any listed company must establish an independent director system and set forth specific requirements for the qualification of independent directors. For example, an independent director shall not hold any other position in the listed company other than being a director and shall not be influenced by the main shareholders or the controlling persons of the listed company, or by any other entities or persons with whom the listed company has a significant relationship. The Company has complied with the relevant Chinese corporate governance rules and has implemented internal rules governing the independence and responsibilities of independent directors. The Company determines the independence of independent directors every year. No similar requirements. |

----

| Nominating/Corporate Governance Committee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Listed companies must have a nominating/corporate governance committee composed entirely of independent directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | It is stipulated in China that the board of directors of a listed company may, through the resolution of the shareholders’ meeting, establish a nominating committee composed entirely of directors, of which the independent directors shall be the majority and the convener. Up to now, the Company has not set up any nominating committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| The nominating/corporate governance committee must have a written charter that addresses the committee’s purposes and responsibilities which, at minimum, must be to: search for eligible people for the board of directors, select and nominate directors for the next session of the shareholders’ annual meeting, study and propose corporate governance guidelines, supervise the evaluation of the board of directors and management, and evaluate the performance of the committee every year.                                                                                                                                                                                                                                                                                                               |   | Relevant responsibilities of the nominating/corporate governance committee are similar to those stipulated by the NYSE rules, but the main responsibilities do not include the research and recommendation of corporate governance guidelines, the supervision of the evaluation of the board of directors and management, or the annual evaluation of the committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Compensation Committee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Listed companies must have a compensation committee composed entirely of independent directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | It is stipulated in China that the board of directors of a listed company should, through the resolution of shareholders’ meeting, have a compensation and assessment committee composed entirely of directors, of whom the independent directors are the majority and act as the convener.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| The written charter of the compensation committee must state, at least, the following purposes and responsibilities:(1) review and approve the corporate goals associated with CEO’s compensation, evaluate the performance of the CEO in fulfilling these goals, and based on such evaluation determine and approve the CEO’s compensation level;(2) make recommendations to the board with respect to non-CEO executive officer compensation, and incentive-compensation and equity-based plans that are subject to board approval;(3) produce a committee report on executive compensation as required by the SEC to be included in the annual proxy statement or annual report filed with the SEC.The charter must also include the requirement for an annual performance evaluation of the compensation committee. |   | It is stipulated in China that the responsibilities of the compensation committee are:(1) to study evaluation standards on the performance of directors and the senior management and submit suggestion to the board of directors;(2) to study and review the compensation policies on the directors and the senior management.It is also stipulated that the committee shall produce a report about the committee’s performance in the annual report.But the committee is not required to produce a report on the executive compensation or make an annual performance evaluation of the committee. The board of directors of the Company has established a compensation and performance evaluation committee composed mainly of independent directors who act as the convener, and the committee has established a written charter complying with the domestic corporate governance rules.  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Audit Committee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Listed companies must have an audit committee that satisfies the requirements of Rule 10A-3 of Securities Exchange Act of 1934 (the “Exchange Act”). It must have a minimum of three members, and all audit committee members must satisfy the requirements for independence set forth in Section 303A.02 of NYSE Corporate Governance Rules as well as the requirements of Rule 10A-3b (1) of the Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                        |   | It is stipulated in China that the board of directors of a listed company should, through the resolution of the shareholders’ meeting, establish an audit committee composed entirely of directors, of which the independent directors are the majority and act as the convener, and, at minimum, one independent director is an accounting professional.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----

| The written charter of the audit committee must specify that the purpose of the audit committee is to assist the board oversight of the integrity of financial statements, the company’s compliance with legal and regulatory requirements, qualifications and independence of independent auditors and the performance of the listed company’s internal audit function and independent auditors. The written charter must also require the audit committee to prepare an audit committee report as required by the SEC to be included in the listed company’s annual proxy statement as well as an annual performance evaluation of the audit committee.  Each listed company must have an internal audit department. Shareholders must be given the opportunity to vote on equity-compensation plans and material revisions thereto, except for employment incentive plans, certain awards and plans in the context of mergers and acquisitions. |   | The responsibilities of the audit committee are similar to those stipulated by the NYSE rules. It is also stipulated that the committee shall produce a report about the committee’s performance in the annual report.But according to the domestic practices, the company is not required to make an annual performance evaluation of the audit committee, and the audit committee is not required to prepare an audit report to be included in the company’s annual proxy statement. The Board of Directors of the Company has established an audit committee that satisfies relevant domestic and overseas requirements and the audit committee has a written charter. China has a similar regulatory provision, and the Company has an internal audit department. The relevant regulations of China require the board of directors propose plans on the amount and types of director compensation for the shareholders’ meeting to approve. The compensation plan of executive officers shall be approved by the board and disclosed to the public upon the approval of the board of directors. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Code of ethics for directors, officers andemployees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | China does not have such requirement for a code for ethics. But, since the directors and officers of the Company have all signed the Director Service Agreement or employment agreement, as applicable, they are bound by their fiduciary duties to the Company. In addition, the directors and officers must perform their legal responsibilities in accordance with the Company Law of PRC, relative requirements of CSRS and Mandatory Provisions to the Charter of Companies Listed Overseas. Meanwhile, the Company establishes The Model Code of Securities Transactions by Corporate Employees and The Rules of The Company’s Shares Transactions by Corporate Directors, Superiors and Senior Managements to regulate the above mentioned people when transacting related securities. In 2008, the Company promulgated the Code for Employees of the Company as the standards of business conduct and ethics of the employees.                                                                                                                                                                                    |
| Each listed company CEO must certify to the NYSE each year that he or she is not aware of any violation by the company of NYSE corporate governance listing standards and he or she must promptly notify the NYSE on writing of any material non-compliance with any applicable provisions of Section 303A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | No similar requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| ITEM 17. | FINANCIAL STATEMENTS |
|----------|----------------------|

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| ITEM 18. | FINANCIAL STATEMENTS |
|----------|----------------------|

| ITEM 19. | EXHIBITS |
|----------|----------|

| 1 **   | Articles of Association of the Registrant, amended and adopted by the shareholders' meeting on May 24, 2006 (English translation), incorporated by reference to Exhibit 1 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2007 (File Number: 001-15138).                                                                                                       |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 1.1 ** | Amendment to the Articles of Association of China Petroleum & Chemical Corporation, adopted by the shareholders’ meeting on May 26, 2008 (English translation), incorporated by reference to Exhibit 1.1 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on May 20, 2009 (File Number: 001-15138).                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 1.2 ** | Articles of Association of the Registrant, amended and adopted by the shareholders’ meeting on May 22, 2009 (English translation), incorporated by reference to Exhibit 1.2 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 30, 2010 (File Number: 001-15138).                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.1**  | Forms of Director Service Contracts dated May 24, 2006 (English translation), incorporated by reference to Exhibit 4.1 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2007  (File Number: 001-15138).                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.2**  | Forms of Supervisor Service Contracts dated May 24, 2006 (English translation), incorporated by reference to Exhibit 4.2 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2007  (File Number: 001-15138).                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.3**  | Reorganization Agreement between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.1 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4**  | Agreement for Mutual Provision of Products and Ancillary Services between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.3 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.5**  | Agreement for Provision of Cultural, Educational, Hygiene and Community Services between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.4 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6**  | Trademark License Agreement between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.6 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.7**  | Patents and Proprietary Technology License Contract between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.7 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.8**  | Computer Software License Contract between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.8 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.9**  | Assets Swap Contract between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.9 to our Registration                                                                                                                                                                                   |

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|   | Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                                                                                                                                                                                                                                                                    |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.10** | Land Use Rights Leasing Contract between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.10 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.12** | Property Leasing Contract between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 (including English translation), incorporated by reference to Exhibit 10.11 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.13** | Accounts Collectable Contract between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated August 16, 2000 (including English translation), incorporated by reference to Exhibit 10.17 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.14** | Loan Transfer and Adjustment Contract between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated August 16, 2000 (including English translation), incorporated by reference to Exhibit 10.18 to our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on October 10, 2000 (File Number: 333-12502).                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.15** | Agreement on Adjustment to Related Party Transactions between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 11, 2001 (English translation), incorporated by reference to Exhibit 4.15 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2007 (File Number: 001-15138).                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.16** | Land Use Right Leasing Agreement between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated August 22, 2003 (English translation), incorporated by reference to Exhibit 4.16 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2007  (File Number: 001-15138).                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.17** | 2004 Agreement on Adjustment to Related Party Transactions between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated October 31, 2004 (English translation) , incorporated by reference to Exhibit 4.17 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2007  (File Number: 001-15138).    |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.18** | Memorandum on Adjustment of Rent of Land Use Rights between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated March 31, 2006 (English translation) , incorporated by reference to Exhibit 4.18 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2007  (File Number: 001-15138).             |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.19** | Supplemental Agreement on  Related Party Transactions between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated March 31, 2006 (English translation) , incorporated by reference to Exhibit 4.19 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 13, 2007  (File Number: 001-15138). |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.20** | Memorandum on Adjustment of Rent of Land Use Rights between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated August 22, 2008 (English Translation), incorporated by reference to Exhibit 4.20 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on May 20, 2009 (File Number: 001-15138).                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 8*     | A list of the Registrant's subsidiaries.                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 12.1*  | Certification of Chairman pursuant to Rule 13a-14(a).                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 12.2*  | Certification of President pursuant to Rule 13a-14(a).                                                                                                                                                                                                                                                                                                                                   |

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| 12.3*  | Certification of CFO pursuant to Rule 13a-14(a).                                   |
|--------|------------------------------------------------------------------------------------|
|   |                                                                               |
| 13*    | Certification of CEO and CFO pursuant to 18 U.S.C. §1350, and Rule 13a-14(b). |

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|                                                                                                 | Page   |
|------------------------------------------------------------------------------------------------------|--------|
|                                                                                                 |   |
| Report of independent registered public accounting firm                                              | F-2    |
|                                                                                                 |   |
| Consolidated statements of income for the years ended December 31, 2008, 2009 and 2010               | F-3    |
|                                                                                                 |   |
| Consolidated statements of comprehensive income for the years ended December 31, 2008, 2009 and 2010 | F-4    |
|                                                                                                 |   |
| Consolidated balance sheets as of December 31, 2009 and 2010                                         | F-5    |
|                                                                                                 |   |
| Consolidated statements of equity for the years ended December 31, 2008, 2009 and 2010               | F-6    |
|                                                                                                 |   |
| Consolidated statements of cash flows for the years ended December 31, 2008, 2009 and 2010           | F-9    |
|                                                                                                 |   |
| Notes to consolidated financial statements                                                           | F-11   |
|                                                                                                 |   |
| Supplemental information on oil and gas producing activities (unaudited)                             | F-67   |

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|   | CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES |
|--------|-------------------------------------------------------------|

|                                                                               |   |   |   |   | Years ended December 31, |      |
|------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------|-----------|
|                                                                               |   | Note   |   |   | 2008                     |      |   | 2009 |   |   | 2010 |   |
|                                                                               |   |   |   |   | RMB                      |      |   | RMB |   |   | RMB |   |
| Operating revenues                                                                 |   |   |   |   |                     |      |   |   |   |   |   |   |
| Sales of goods                                                                     |   |   |   |   |                     | 1,413,203 |   |   |   | 1,315,915 |   |   |   | 1,876,758 |   |
| Other operating revenues                                                           |   |   | 3      |   |                     |      | 31,088 |   |   |   | 29,137 |   |   |   | 36,424 |   |
|                                                                               |   |   |   |   |                     |      | 1,444,291 |   |   |   | 1,345,052 |   |   |   | 1,913,182 |   |
|                                                                               |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Other income                                                                       |   |   | 4      |   |                     |      | 50,857 |   |   |   | — |   |   |   | — |   |
|                                                                               |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                                 |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Purchased crude oil, products and operating supplies and expenses                  |   |   |   |   |                     |      | (1,270,586 | ) |   |   | (980,564 | ) |   |   | (1,482,484 | ) |
| Selling, general and administrative expenses                                       |   |   | 5      |   |                     |      | (39,420 | ) |   |   | (40,539 | ) |   |   | (51,048 | ) |
| Depreciation, depletion and amortization                                           |   |   |   |   |                     |      | (49,541 | ) |   |   | (54,016 | ) |   |   | (59,223 | ) |
| Exploration expenses, including dry holes                                          |   |   |   |   |                     |      | (8,310 | ) |   |   | (10,545 | ) |   |   | (10,955 | ) |
| Personnel expenses                                                                 |   |   | 6      |   |                     |      | (23,408 | ) |   |   | (28,895 | ) |   |   | (33,672 | ) |
| Taxes other than income tax                                                        |   |   | 7      |   |                     |      | (57,214 | ) |   |   | (132,884 | ) |   |   | (157,189 | ) |
| Other operating expenses, net                                                      |   |   | 8      |   |                     |      | (8,088 | ) |   |   | (6,910 | ) |   |   | (13,607 | ) |
| Total operating expenses                                                           |   |   |   |   |                     |      | (1,456,567 | ) |   |   | (1,254,353 | ) |   |   | (1,808,178 | ) |
| Operating income                                                                   |   |   |   |   |                     |      | 38,581 |   |   |   | 90,699 |   |   |   | 105,004 |   |
|                                                                               |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Finance costs                                                                      |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                   |   |   | 9      |   |                     |      | (12,842 | ) |   |   | (7,609 | ) |   |   | (7,972 | ) |
| Interest income                                                                    |   |   |   |   |                     |      | 466 |   |   |   | 277 |   |   |   | 660 |   |
| Unrealized gain / (loss) on embedded derivative component of the Convertible Bonds |   |   | 24(c)  |   |                     |      | 3,947 |   |   |   | (218 | ) |   |   | (127 | ) |
| Foreign currency exchange losses                                                   |   |   |   |   |                     |      | (958 | ) |   |   | (345 | ) |   |   | (609 | ) |
| Foreign currency exchange gains                                                    |   |   |   |   |                     |      | 3,278 |   |   |   | 429 |   |   |   | 1,074 |   |
| Net finance costs                                                                  |   |   |   |   |                     |      | (6,109 | ) |   |   | (7,466 | ) |   |   | (6,974 | ) |
| Investment income                                                                  |   |   |   |   |                     |      | 390 |   |   |   | 374 |   |   |   | 273 |   |
| Income from associates and jointly controlled entities                             |   |   |   |   |                     |      | 580 |   |   |   | 2,997 |   |   |   | 5,390 |   |
| Earnings before income tax                                                         |   |   |   |   |                     |      | 33,442 |   |   |   | 86,604 |   |   |   | 103,693 |   |
| Tax expense                                                                        |   |   | 10     |   |                     |      | (3,624 | ) |   |   | (19,599 | ) |   |   | (25,689 | ) |
| Net income                                                                         |   |   |   |   |                     |      | 29,818 |   |   |   | 67,005 |   |   |   | 78,004 |   |
|                                                                               |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                                   |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Equity shareholders of the Company                                                 |   |   |   |   |                     |      | 31,199 |   |   |   | 63,147 |   |   |   | 71,800 |   |
| Non-controlling interests                                                          |   |   |   |   |                     |      | (1,381 | ) |   |   | 3,858 |   |   |   | 6,204 |   |
| Net income                                                                         |   |   |   |   |                     |      | 29,818 |   |   |   | 67,005 |   |   |   | 78,004 |   |
|                                                                               |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                                                |   |   |   |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   |   | 12     |   |                     |      | 0.36 |   |   |   | 0.73 |   |   |   | 0.83 |   |
| Diluted                                                                            |   |   | 12     |   |                     |      | 0.32 |   |   |   | 0.72 |   |   |   | 0.82 |   |

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|   | CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES |
|--------|-------------------------------------------------------------|

|                                                                                 |   |   |   |   | Years ended December 31, |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------|--------|
|                                                                                 |   | Note   |   |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                                                                                 |   |   |   |   | RMB                      |   |   | RMB |   |   | RMB |   |
|                                                                                 |   |   |   |   |                     |   |   |   |   |   |   |   |
| Net income                                                                           |   |   |   |   |                     | 29,818 |   |   |   | 67,005 |   |   |   | 78,004 |   |
|                                                                                 |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income for the year (after tax and reclassification adjustments) |   |   | 11     |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges                                                                     |   |   |   |   |                     |   | — |   |   |   | 54 |   |   |   | (221 | ) |
| Available-for-sale securities                                                        |   |   |   |   |                     |   | (232 | ) |   |   | (175 | ) |   |   | (9 | ) |
| Share of other comprehensive income of associates                                    |   |   |   |   |                     |   | (2,206 | ) |   |   | 806 |   |   |   | (533 | ) |
| Foreign currency translation differences                                             |   |   |   |   |                     |   | (106 | ) |   |   | (4 | ) |   |   | (1,360 | ) |
| Total other comprehensive income                                                     |   |   |   |   |                     |   | (2,544 | ) |   |   | 681 |   |   |   | (2,123 | ) |
|                                                                                 |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income for the year                                              |   |   |   |   |                     |   | 27,274 |   |   |   | 67,686 |   |   |   | 75,881 |   |
|                                                                                 |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                                     |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Equity shareholders of the Company                                                   |   |   |   |   |                     |   | 28,821 |   |   |   | 63,867 |   |   |   | 69,793 |   |
| Non-controlling interests                                                            |   |   |   |   |                     |   | (1,547 | ) |   |   | 3,819 |   |   |   | 6,088 |   |
| Total comprehensive income for the year                                              |   |   |   |   |                     |   | 27,274 |   |   |   | 67,686 |   |   |   | 75,881 |   |

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|                                                            |   |   |   |   | December 31, |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------------|--------|
|                                                            |   | Note   |   |   | 2009         |   |   | 2010 |   |
|                                                            |   |   |   |   | RMB          |   |   | RMB |   |
| ASSETS                                                          |   |   |   |   |         |   |   |   |   |
| Current assets                                                  |   |   |   |   |         |   |   |   |   |
| Cash and cash equivalents                                       |   |   |   |   |         | 8,782  |   |   |   | 17,008 |   |
| Time deposits with financial institutions                       |   |   |   |   |         | 1,236  |   |   |   | 1,132 |   |
| Trade accounts receivable, net                                  |   |   | 13     |   |         |   | 26,592 |   |   |   | 43,093 |   |
| Bills receivable                                                |   |   |   |   |         |   | 2,110 |   |   |   | 15,950 |   |
| Inventories                                                     |   |   | 14     |   |         |   | 141,727 |   |   |   | 156,546 |   |
| Prepaid expenses and other current assets                       |   |   | 15     |   |         |   | 21,032 |   |   |   | 26,500 |   |
| Total current assets                                            |   |   |   |   |         |   | 201,479 |   |   |   | 260,229 |   |
| Non-current assets                                              |   |   |   |   |         |   |   |   |   |   |   |   |
| Property, plant and equipment, net                              |   |   | 16     |   |         |   | 484,815 |   |   |   | 540,700 |   |
| Construction in progress                                        |   |   | 17     |   |         |   | 120,375 |   |   |   | 89,599 |   |
| Goodwill                                                        |   |   | 18     |   |         |   | 14,072 |   |   |   | 8,207 |   |
| Interest in associates                                          |   |   | 19     |   |         |   | 18,162 |   |   |   | 22,815 |   |
| Interest in jointly controlled entities                         |   |   | 20     |   |         |   | 13,928 |   |   |   | 20,199 |   |
| Investments                                                     |   |   | 21     |   |         |   | 2,174 |   |   |   | 2,075 |   |
| Deferred tax assets                                             |   |   | 23     |   |         |   | 13,975 |   |   |   | 15,516 |   |
| Lease prepayments                                               |   |   |   |   |         |   | 16,238 |   |   |   | 19,464 |   |
| Long-term prepayments and other assets                          |   |   | 22     |   |         |   | 13,045 |   |   |   | 16,350 |   |
| Total non-current assets                                        |   |   |   |   |         |   | 696,784 |   |   |   | 734,925 |   |
| Total assets                                                    |   |   |   |   |         |   | 898,263 |   |   |   | 995,154 |   |
| LIABILITIES AND EQUITY                                          |   |   |   |   |         |   |   |   |   |   |   |   |
| Current liabilities                                             |   |   |   |   |         |   |   |   |   |   |   |   |
| Short-term debts                                                |   |   | 24     |   |         |   | 59,350 |   |   |   | 17,019 |   |
| Loans from Sinopec Group Company and its affiliates             |   |   | 24     |   |         |   | 15,866 |   |   |   | 18,809 |   |
| Trade accounts payable                                          |   |   | 25     |   |         |   | 96,762 |   |   |   | 132,528 |   |
| Bills payable                                                   |   |   | 25     |   |         |   | 23,111 |   |   |   | 3,818 |   |
| Accrued expenses and other payables                             |   |   | 26     |   |         |   | 117,798 |   |   |   | 153,478 |   |
| Income tax payable                                              |   |   |   |   |         |   | 3,034 |   |   |   | 10,754 |   |
| Total current liabilities                                       |   |   |   |   |         |   | 315,921 |   |   |   | 336,406 |   |
| Non-current liabilities                                         |   |   |   |   |         |   |   |   |   |   |   |   |
| Long-term debts                                                 |   |   | 24     |   |         |   | 110,918 |   |   |   | 136,465 |   |
| Loans from Sinopec Group Company and its affiliates             |   |   | 24     |   |         |   | 41,807 |   |   |   | 37,610 |   |
| Deferred tax liabilities                                        |   |   | 23     |   |         |   | 9,707 |   |   |   | 15,017 |   |
| Provisions                                                      |   |   | 27     |   |         |   | 11,860 |   |   |   | 15,573 |   |
| Other liabilities                                               |   |   |   |   |         |   | 3,234 |   |   |   | 3,715 |   |
| Total non-current liabilities                                   |   |   |   |   |         |   | 177,526 |   |   |   | 208,380 |   |
| Total liabilities                                               |   |   |   |   |         |   | 493,447 |   |   |   | 544,786 |   |
| Equity                                                          |   |   |   |   |         |   |   |   |   |   |   |   |
| Share capital                                                   |   |   | 28     |   |         |   | 86,702 |   |   |   | 86,702 |   |
| Reserves                                                        |   |   | 29     |   |         |   | 292,238 |   |   |   | 332,345 |   |
| Total equity attributable to equity shareholders of the Company |   |   |   |   |         |   | 378,940 |   |   |   | 419,047 |   |
| Non-controlling interests                                       |   |   |   |   |         |   | 25,876 |   |   |   | 31,321 |   |
| Total equity                                                    |   |   |   |   |         |   | 404,816 |   |   |   | 450,368 |   |
| Total liabilities and equity                                    |   |   |   |   |         |   | 898,263 |   |   |   | 995,154 |   |

----

|                                                                                    |   | Sharecapital |    |   | Capitalreserve |   |    | Sharepremium |   |   | Statutorysurplusreserve |   |   | Dis-cretionarysurplusreserve |    |   | Otherreserves |   |    | Retainedearnings |   |   | Total equity attributableto equity shareholders ofthe Company |   |   |  Non-controlling interests |    |   | Total equity |   |
|-----------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------------|--------|---------|--------------|--------|--------|-------------------------|--------|--------|------------------------------|---------|--------|---------------|--------|---------|------------------|--------|--------|---------------------------------------------------------------|--------|--------|---------------------------------|---------|--------|--------------|--------|
|                                                                                    |   | RMB          |    |   | RMB            |   |    | RMB          |   |   | RMB                     |   |   | RMB                          |    |   | RMB           |   |    | RMB              |   |   | RMB                                                           |   |   | RMB                             |    |   | RMB          |   |
|                                                                                    |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |
| Balance as of January 1, 2008, as previously reported                                   |   |         | 86,702  |   |           |   | (22,652 | )            |   |   | 18,072                  |   |   |                         | 37,797  |   |          |   | 27,000  |             |   |   | 3,564                                                         |   |   |                            | 157,414 |   |         |   | 307,897 |   |   |   | 25,325 |   |   |   | 333,222 |   |
| Adjustment for the Acquisition of SSI (Note 1)                                          |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 236                                                           |   |   |                            | — |   |         |   | 236 |   |   |   | 196 |   |   |   | 432 |   |
| Balance as of January 1, 2008, as adjusted                                              |   |         | 86,702  |   |           |   | (22,652 | )            |   |   | 18,072                  |   |   |                         | 37,797  |   |          |   | 27,000  |             |   |   | 3,800                                                         |   |   |                            | 157,414 |   |         |   | 308,133 |   |   |   | 25,521 |   |   |   | 333,654 |   |
| Net income                                                                              |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | 31,199  |   |         |   | 31,199 |   |   |   | (1,381 | ) |   |   | 29,818 |   |
| Other comprehensive income:                                                             |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities                                                           |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (114                                                          | )      |   |                            | — |   |         |   | (114 | ) |   |   | (118 | ) |   |   | (232 | ) |
| Share of other comprehensive income of associates                                       |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (2,206                                                        | )      |   |                            | — |   |         |   | (2,206 | ) |   |   | — |   |   |   | (2,206 | ) |
| Foreign currency translation differences                                                |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (58                                                           | )      |   |                            | — |   |         |   | (58 | ) |   |   | (48 | ) |   |   | (106 | ) |
| Total other comprehensive income                                                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (2,378                                                        | )      |   |                            | — |   |         |   | (2,378 | ) |   |   | (166 | ) |   |   | (2,544 | ) |
| Total comprehensive income for the year                                                 |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (2,378                                                        | )      |   |                            | 31,199  |   |         |   | 28,821 |   |   |   | (1,547 | ) |   |   | 27,274 |   |
| Transactions with owners recorded directly in equity:                                   |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Contributions by and distributions to owners:                                           |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of the Bonds with Warrants (Note 24 (d))                                       |   |         | — |   |           |   | 6,879   |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | — |   |         |   | 6,879 |   |   |   | — |   |   |   | 6,879 |   |
| Final dividend for 2007                                                                 |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | (9,971  | )      |         |   | (9,971 | ) |   |   | — |   |   |   | (9,971 | ) |
| Interim dividend for 2008                                                               |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | (2,601  | )      |         |   | (2,601 | ) |   |   | — |   |   |   | (2,601 | ) |
| Adjustment of statutory surplus reserve                                                 |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | 1,189   |   |          |   | — |             |   |   | —                                                       |   |   |                            | (1,189  | )      |         |   | — |   |   |   | — |   |   |   | — |   |
| Appropriation (Note 29(c))                                                              |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | 4,092   |   |          |   | 20,000  |             |   |   | —                                                       |   |   |                            | (24,092 | )      |         |   | — |   |   |   | — |   |   |   | — |   |
| Transfer from retained earnings to other reserves                                       |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 1,430                                                         |   |   |                            | (1,430  | )      |         |   | — |   |   |   | — |   |   |   | — |   |
| Distribution to Sinopec Group Company                                                   |   |         | — |   |           |   | (202    | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (958                                                          | )      |   |                            | — |   |         |   | (1,160 | ) |   |   | — |   |   |   | (1,160 | ) |
| Distributions by subsidiaries to non-controlling interests net of contributions         |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | — |   |         |   | — |   |   |   | (1,152 | ) |   |   | (1,152 | ) |
| Total contributions by and distributions to owners                                      |   |         | — |   |           |   | 6,677   |         |   |   | —                 |   |   |                         | 5,281   |   |          |   | 20,000  |             |   |   | 472                                                           |   |   |                            | (39,283 | )      |         |   | (6,853 | ) |   |   | (1,152 | ) |   |   | (8,005 | ) |
| Changes in ownership interests in subsidiaries that do not result in a loss of control: |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Acquisitions of non-controlling interests of subsidiaries                               |   |         | — |   |           |   | (318    | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | — |   |         |   | (318 | ) |   |   | (617 | ) |   |   | (935 | ) |
| Total transactions with owners:                                                         |   |         | — |   |           |   | 6,359   |         |   |   | —                 |   |   |                         | 5,281   |   |          |   | 20,000  |             |   |   | 472                                                           |   |   |                            | (39,283 | )      |         |   | (7,171 | ) |   |   | (1,769 | ) |   |   | (8,940 | ) |
| Realization of deferred tax on lease prepayments                                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (6                                                            | )      |   |                            | 6       |   |         |   | — |   |   |   | — |   |   |   | — |   |
| Balance as of December 31, 2008                                                         |   |         | 86,702  |   |           |   | (16,293 | )            |   |   | 18,072                  |   |   |                         | 43,078  |   |          |   | 47,000  |             |   |   | 1,888                                                         |   |   |                            | 149,336 |   |         |   | 329,783 |   |   |   | 22,205 |   |   |   | 351,988 |   |

----

|                                                                                    |   | Sharecapital |    |   | Capitalreserve |   |    | Sharepremium |   |   | Statutorysurplusreserve |   |   | Dis-cretionarysurplusreserve |    |   | Otherreserves |   |    | Retainedearnings |   |   | Total equity attribtableto equity shareholders ofthe Company |   |   |  Non-controlling interests |    |   | Total equity |   |
|-----------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------------|--------|---------|--------------|--------|--------|-------------------------|--------|--------|------------------------------|---------|--------|---------------|--------|---------|------------------|--------|--------|--------------------------------------------------------------|--------|--------|---------------------------------|---------|--------|--------------|--------|
|                                                                                    |   | RMB          |    |   | RMB            |   |    | RMB          |   |   | RMB                     |   |   | RMB                          |    |   | RMB           |   |    | RMB              |   |   | RMB                                                          |   |   | RMB                             |    |   | RMB          |   |
| Balance as of January 1, 2009                                                           |   |         | 86,702  |   |           |   | (16,293 | )            |   |   | 18,072                  |   |   |                         | 43,078  |   |          |   | 47,000  |             |   |   | 1,888                                                        |   |   |                            | 149,336 |   |         |   | 329,783 |   |   |   | 22,205 |   |   |   | 351,988 |   |
| Net income                                                                              |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                      |   |   |                            | 63,147  |   |         |   | 63,147 |   |   |   | 3,858 |   |   |   | 67,005 |   |
| Other comprehensive income:                                                             |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                         |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges                                                                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 54                                                           |   |   |                            | — |   |         |   | 54 |   |   |   | — |   |   |   | 54 |   |
| Available-for-sale securities                                                           |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (138                                                         | )      |   |                            | — |   |         |   | (138 | ) |   |   | (37 | ) |   |   | (175 | ) |
| Share of other comprehensive income of associates                                       |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 806                                                          |   |   |                            | — |   |         |   | 806 |   |   |   | — |   |   |   | 806 |   |
|  Foreign currency translation differences                                          |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (2                                                           | )      |   |                            | — |   |         |   | (2 | ) |   |   | (2 | ) |   |   | (4 | ) |
| Total other comprehensive income                                                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 720                                                          |   |   |                            | — |   |         |   | 720 |   |   |   | (39 | ) |   |   | 681 |   |
| Total comprehensive income for the year                                                 |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 720                                                          |   |   |                            | 63,147  |   |         |   | 63,867 |   |   |   | 3,819 |   |   |   | 67,686 |   |
| Transactions with owners recorded directly in equity:                                   |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                         |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Contributions by and distributions to owners:                                           |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                         |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Final dividend for 2008                                                                 |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                      |   |   |                            | (7,803  | )      |         |   | (7,803 | ) |   |   | — |   |   |   | (7,803 | ) |
| Interim dividend for 2009                                                               |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                      |   |   |                            | (6,069  | )      |         |   | (6,069 | ) |   |   | — |   |   |   | (6,069 | ) |
| Appropriation (Note 29 (c) and (d))                                                     |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | 4,953   |   |          |   | 20,000  |             |   |   | —                                                      |   |   |                            | (24,953 | )      |         |   | — |   |   |   | — |   |   |   | — |   |
| Transfer from retained earnings to other reserves                                       |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 1,387                                                        |   |   |                            | (1,387  | )      |         |   | — |   |   |   | — |   |   |   | — |   |
| Transfer from other reserves to capital reserve                                         |   |         | — |   |           |   | (1,551  | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 1,551                                                        |   |   |                            | — |   |         |   | — |   |   |   | — |   |   |   | — |   |
| Consideration for the Acquisition of the Acquired Group (Note 1)                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (771                                                         | )      |   |                            | — |   |         |   | (771 | ) |   |   | — |   |   |   | (771 | ) |
| Distribution to Sinopec Group Company                                                   |   |         | — |   |           |   | (49     | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                      |   |   |                            | — |   |         |   | (49 | ) |   |   | — |   |   |   | (49 | ) |
| Distributions by subsidiaries to non-controlling interests net of contributions         |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                      |   |   |                            | — |   |         |   | — |   |   |   | (144 | ) |   |   | (144 | ) |
| Total contributions by and distributions to owners                                      |   |         | — |   |           |   | (1,600  | )            |   |   | —                 |   |   |                         | 4,953   |   |          |   | 20,000  |             |   |   | 2,167                                                        |   |   |                            | (40,212 | )      |         |   | (14,692 | ) |   |   | (144 | ) |   |   | (14,836 | ) |
| Changes in ownership interests in subsidiaries that do not result in a loss of control: |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                         |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Acquisitions of non-controlling interests of subsidiaries                               |   |         | — |   |           |   | (18     | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                      |   |   |                            | — |   |         |   | (18 | ) |   |   | (4 | ) |   |   | (22 | ) |
| Total transactions with owners                                                          |   |         | — |   |           |   | (1,618  | )            |   |   | —                 |   |   |                         | 4,953   |   |          |   | 20,000  |             |   |   | 2,167                                                        |   |   |                            | (40,212 | )      |         |   | (14,710 | ) |   |   | (148 | ) |   |   | (14,858 | ) |
| Realization of deferred tax on lease prepayments                                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (8                                                           | )      |   |                            | 8       |   |         |   | — |   |   |   | — |   |   |   | — |   |
| Balance as of December 31, 2009                                                         |   |         | 86,702  |   |           |   | (17,911 | )            |   |   | 18,072                  |   |   |                         | 48,031  |   |          |   | 67,000  |             |   |   | 4,767                                                        |   |   |                            | 172,279 |   |         |   | 378,940 |   |   |   | 25,876 |   |   |   | 404,816 |   |

----

|                                                                                    |   | Sharecapital |    |   | Capitalreserve |   |    | Sharepremium |   |   | Statutorysurplusreserve |   |   | Dis-cretionarysurplusreserve |    |   | Otherreserves |   |    | Retainedearnings |   |   | Total equity attributableto equity shareholders ofthe Company |   |   |  Non-controlling interests |    |   | Total equity |   |
|-----------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------------|--------|---------|--------------|--------|--------|-------------------------|--------|--------|------------------------------|---------|--------|---------------|--------|---------|------------------|--------|--------|---------------------------------------------------------------|--------|--------|---------------------------------|---------|--------|--------------|--------|
|                                                                                    |   | RMB          |    |   | RMB            |   |    | RMB          |   |   | RMB                     |   |   | RMB                          |    |   | RMB           |   |    | RMB              |   |   | RMB                                                           |   |   | RMB                             |    |   | RMB          |   |
| Balance as of January 1, 2010                                                           |   |         | 86,702  |   |           |   | (17,911 | )            |   |   | 18,072                  |   |   |                         | 48,031  |   |          |   | 67,000  |             |   |   | 4,767                                                         |   |   |                            | 172,279 |   |         |   | 378,940 |   |   |   | 25,876 |   |   |   | 404,816 |   |
| Net income                                                                              |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | 71,800  |   |         |   | 71,800 |   |   |   | 6,204 |   |   |   | 78,004 |   |
| Other comprehensive income:                                                             |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges                                                                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (221                                                          | )      |   |                            | — |   |         |   | (221 | ) |   |   | — |   |   |   | (221 | ) |
| Available-for-sale securities                                                           |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (9                                                            | )      |   |                            | — |   |         |   | (9 | ) |   |   | — |   |   |   | (9 | ) |
| Share of other comprehensive income of associates                                       |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (533                                                          | )      |   |                            | — |   |         |   | (533 | ) |   |   | — |   |   |   | (533 | ) |
| Foreign currency translation differences                                                |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (1,244                                                        | )      |   |                            | — |   |         |   | (1,244 | ) |   |   | (116 | ) |   |   | (1,360 | ) |
| Total other comprehensive income                                                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (2,007                                                        | )      |   |                            | — |   |         |   | (2,007 | ) |   |   | (116 | ) |   |   | (2,123 | ) |
| Total comprehensive income for the year                                                 |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (2,007                                                        | )      |   |                            | 71,800  |   |         |   | 69,793 |   |   |   | 6,088 |   |   |   | 75,881 |   |
| Transactions with owners recorded directly in equity:                                   |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Contributions by and distributions to owners:                                           |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Warrants exercised                                                                      |   |         | — |   |           |   | — |         |   |   | 2                       |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | — |   |         |   | 2 |   |   |   | — |   |   |   | 2 |   |
| Expiry of warrants                                                                      |   |         | — |   |           |   | (6,879  | )            |   |   | 6,879                   |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | — |   |         |   | — |   |   |   | — |   |   |   | — |   |
| Final dividend for 2009                                                                 |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | (9,537  | )      |         |   | (9,537 | ) |   |   | — |   |   |   | (9,537 | ) |
| Interim dividend for 2010                                                               |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | (6,936  | )      |         |   | (6,936 | ) |   |   | — |   |   |   | (6,936 | ) |
| Appropriation (Note 29 (c) and (d))                                                     |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | 6,680   |   |          |   | 20,000  |             |   |   | —                                                       |   |   |                            | (26,680 | )      |         |   | — |   |   |   | — |   |   |   | — |   |
| Transfer from retained earnings to other reserves                                       |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 1,672                                                         |   |   |                            | (1,672  | )      |         |   | — |   |   |   | — |   |   |   | — |   |
| Transfer from other reserves to capital reserve                                         |   |         | — |   |           |   | (8,310  | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 8,310                                                         |   |   |                            | — |   |         |   | — |   |   |   | — |   |   |   | — |   |
| Consideration for the Acquisition of SSI (Note 1)                                       |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (13,177                                                       | )      |   |                            | — |   |         |   | (13,177 | ) |   |   | — |   |   |   | (13,177 | ) |
| Distribution to Sinopec Group Company                                                   |   |         | — |   |           |   | (29     | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | — |   |         |   | (29 | ) |   |   | — |   |   |   | (29 | ) |
| Distributions by subsidiaries to non-controlling interests net of contributions         |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | — |   |         |   | — |   |   |   | (643 | ) |   |   | (643 | ) |
| Total contributions by and distributions to owners                                      |   |         | — |   |           |   | (15,218 | )            |   |   | 6,881                   |   |   |                         | 6,680   |   |          |   | 20,000  |             |   |   | (3,195                                                        | )      |   |                            | (44,825 | )      |         |   | (29,677 | ) |   |   | (643 | ) |   |   | (30,320 | ) |
| Changes in ownership interests in subsidiaries that do not result in a loss of control: |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                          |   |   |                            |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Acquisitions of non-controlling interests of subsidiaries                               |   |         | — |   |           |   | (9      | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                       |   |   |                            | — |   |         |   | (9 | ) |   |   | — |   |   |   | (9 | ) |
| Total transactions with owners                                                          |   |         | — |   |           |   | (15,227 | )            |   |   | 6,881                   |   |   |                         | 6,680   |   |          |   | 20,000  |             |   |   | (3,195                                                        | )      |   |                            | (44,825 | )      |         |   | (29,686 | ) |   |   | (643 | ) |   |   | (30,329 | ) |
| Realization of deferred tax on lease prepayments                                        |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (8                                                            | )      |   |                            | 8       |   |         |   | — |   |   |   | — |   |   |   | — |   |
| Appropriation to safety production fund (Note 29(h))                                    |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 1,325                                                         |   |   |                            | (1,325  | )      |         |   | — |   |   |   | — |   |   |   | — |   |
| Balance as of December 31, 2010                                                         |   |         | 86,702  |   |           |   | (33,138 | )            |   |   | 24,953                  |   |   |                         | 54,711  |   |          |   | 87,000  |             |   |   | 882                                                           |   |   |                            | 197,937 |   |         |   | 419,047 |   |   |   | 31,321 |   |   |   | 450,368 |   |

----

|                                                                                              |   |   | Years ended December 31, |       |
|---------------------------------------------------------------------------------------------------|--------|--------|--------------------------|------------|
|                                                                                              | Note   |   | 2008                     |       |   | 2009 |   |   | 2010 |   |
|                                                                                              |   |   | RMB                      |       |   | RMB |   |   | RMB |   |
|                                                                                              |   |   |                     |       |   |   |   |   |   |   |
| Net cash generated from operating activities                                                      | (a)    |   |                     | 86,443     |   |   |   | 165,513 |   |   |   | 170,333 |   |
| Investing activities                                                                              |   |   |                     |       |   |   |   |   |   |   |   |   |   |
| Capital expenditure                                                                               |   |   |                     | (102,946   | ) |   |   | (107,487 | ) |   |   | (106,371 | ) |
| Exploratory wells expenditure                                                                     |   |   |                     | (8,380     | ) |   |   | (8,708 | ) |   |   | (7,392 | ) |
| Purchase of investments, investments in associates and investments in jointly controlled entities |   |   |                     | (3,089     | ) |   |   | (3,240 | ) |   |   | (11,310 | ) |
| Proceeds from disposal of investments and investments in associates                               |   |   |                     | 1,366      |   |   |   | 504 |   |   |   | 1,687 |   |
| Proceeds from disposal of property, plant and equipment                                           |   |   |                     | 265        |   |   |   | 594 |   |   |   | 16,126 |   |
| Purchase of time deposits with financial institutions                                             |   |   |                     | (1,442     | ) |   |   | (2,304 | ) |   |   | (3,522 | ) |
| Proceeds from maturity of time deposits with financial institutions                               |   |   |                     | 1,358      |   |   |   | 1,820 |   |   |   | 3,626 |   |
| Interest received                                                                                 |   |   |                     | 467        |   |   |   | 277 |   |   |   | 660 |   |
| Investment and dividend income received                                                           |   |   |                     | 3,682      |   |   |   | 1,133 |   |   |   | 1,335 |   |
| Payments for settlement of derivative financial instruments                                       |   |   |                     | (5,490     | ) |   |   | (3,197 | ) |   |   | (5,273 | ) |
| Proceeds from settlement of derivative financial instruments                                      |   |   |                     | 5,921      |   |   |   | 3,253 |   |   |   | 4,646 |   |
| Net cash used in investing activities                                                             |   |   |                     | (108,288   | ) |   |   | (117,355 | ) |   |   | (105,788 | ) |
| Financing activities                                                                              |   |   |                     |       |   |   |   |   |   |   |   |   |   |
| Proceeds from issuance of corporate bonds                                                         |   |   |                     | 15,000     |   |   |   | 61,000 |   |   |   | 21,000 |   |
| Proceeds from issuance of convertible bonds, net of issuance costs                                |   |   |                     | 29,850     |   |   |   | — |   |   |   | — |   |
| Proceeds from issuance of shares                                                                  |   |   |                     | —    |   |   |   | — |   |   |   | 2 |   |
| Proceeds from bank and other loans                                                                |   |   |                     | 1,192,978  |   |   |   | 781,212 |   |   |   | 663,491 |   |
| Repayments of corporate bonds                                                                     |   |   |                     | (10,000    | ) |   |   | (15,000 | ) |   |   | (31,000 | ) |
| Repayments of bank and other loans                                                                |   |   |                     | (1,177,859 | ) |   |   | (850,683 | ) |   |   | (672,804 | ) |
| Distributions by subsidiaries to non-controlling interests                                        |   |   |                     | (2,188     | ) |   |   | (858 | ) |   |   | (1,051 | ) |
| Contributions to subsidiaries from non-controlling interests                                      |   |   |                     | 1,137      |   |   |   | 714 |   |   |   | 408 |   |
| Acquisitions of non-controlling interests of subsidiaries                                         |   |   |                     | (598       | ) |   |   | (213 | ) |   |   | — |   |
| Dividend paid                                                                                     |   |   |                     | (13,530    | ) |   |   | (13,559 | ) |   |   | (16,391 | ) |
| Interest paid                                                                                     |   |   |                     | (12,263    | ) |   |   | (7,762 | ) |   |   | (6,739 | ) |
| Distributions to Sinopec Group Company                                                            |   |   |                     | (2,180     | ) |   |   | (1,262 | ) |   |   | (13,210 | ) |
| Net cash generated from /(used in) financing activities                                           |   |   |                     | 20,347     |   |   |   | (46,411 | ) |   |   | (56,294 | ) |
| Net (decrease) / increase in cash and cash equivalents                                            |   |   |                     | (1,498     | ) |   |   | 1,747 |   |   |   | 8,251 |   |
| Cash and cash equivalents as of January 1                                                         |   |   |                     | 8,618      |   |   |   | 7,040 |   |   |   | 8,782 |   |
| Effect of foreign currency exchange rate changes                                                  |   |   |                     | (80        | ) |   |   | (5 | ) |   |   | (25 | ) |
| Cash and cash equivalents as of December 31                                                       |   |   |                     | 7,040      |   |   |   | 8,782 |   |   |   | 17,008 |   |

----

|   | (a)   Reconciliation of earnings before income tax to net cash generated from operating activities |
|--------|-------------------------------------------------------------------------------------------------------------------|

|                                                                                           |   | Years ended December 31, |    |
|------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                           |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
|                                                                                           |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Operating activities                                                                           |   |                     |    |   |   |   |   |   |   |
| Earnings before income tax                                                                     |   |                     | 33,442  |   |   |   | 86,604 |   |   |   | 103,693 |   |
| Adjustment for:                                                                                |   |                     |    |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization                                                       |   |                     | 49,541  |   |   |   | 54,016 |   |   |   | 59,223 |   |
| Dry hole costs                                                                                 |   |                     | 4,236   |   |   |   | 4,761 |   |   |   | 4,986 |   |
| Income from associates and jointly controlled entities                                         |   |                     | (580    | ) |   |   | (2,997 | ) |   |   | (5,390 | ) |
| Investment income                                                                              |   |                     | (390    | ) |   |   | (374 | ) |   |   | (273 | ) |
| Interest income                                                                                |   |                     | (466    | ) |   |   | (277 | ) |   |   | (660 | ) |
| Interest expense                                                                               |   |                     | 12,842  |   |   |   | 7,609 |   |   |   | 7,972 |   |
| Unrealized gain on foreign currency exchange rate changes and derivative financial instruments |   |                     | (2,390  | ) |   |   | (81 | ) |   |   | (438 | ) |
| Gain on disposal of property, plant and equipment, net                                         |   |                     | (231    | ) |   |   | (211 | ) |   |   | (253 | ) |
| Impairment losses on long-lived assets                                                         |   |                     | 8,500   |   |   |   | 7,285 |   |   |   | 14,477 |   |
| Unrealized (gain) / loss on embedded derivative component of the Convertible Bonds             |   |                     | (3,947  | ) |   |   | 218 |   |   |   | 127 |   |
|                                                                                           |   |                     | 100,557 |   |   |   | 156,553 |   |   |   | 183,464 |   |
| Decrease / (increase) in trade accounts receivable                                             |   |                     | 10,818  |   |   |   | (13,467 | ) |   |   | (16,500 | ) |
| Decrease / (increase) in bills receivable                                                      |   |                     | 9,273   |   |   |   | 1,568 |   |   |   | (13,840 | ) |
| Decrease / (increase) in inventories                                                           |   |                     | 21,058  |   |   |   | (45,606 | ) |   |   | (14,819 | ) |
| (Increase) / decrease in prepaid expenses and other current assets                             |   |                     | (10,856 | ) |   |   | 13,989 |   |   |   | (7,062 | ) |
| Increase in lease prepayments                                                                  |   |                     | (2,600  | ) |   |   | (5,073 | ) |   |   | (3,226 | ) |
| Decrease in long-term prepayments and other assets                                             |   |                     | 1,930   |   |   |   | 4,378 |   |   |   | 2,831 |   |
| (Decrease) / increase in trade accounts payable                                                |   |                     | (36,809 | ) |   |   | 40,943 |   |   |   | 35,765 |   |
| Increase / (decrease) in bills payable                                                         |   |                     | 6,323   |   |   |   | 4,353 |   |   |   | (19,293 | ) |
| Increase in accrued expenses and other payables                                                |   |                     | 11,006  |   |   |   | 13,417 |   |   |   | 37,318 |   |
| Increase / (decrease) in other liabilities                                                     |   |                     | 442     |   |   |   | 503 |   |   |   | (147 | ) |
|                                                                                           |   |                     | 111,142 |   |   |   | 171,558 |   |   |   | 184,491 |   |
| Income tax paid                                                                                |   |                     | (24,699 | ) |   |   | (6,045 | ) |   |   | (14,158 | ) |
| Net cash generated from operating activities                                                   |   |                     | 86,443  |   |   |   | 165,513 |   |   |   | 170,333 |   |

----

| 1 | PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PRESENTATION |
|---|--------------------------------------------------------------|

----

|                                                              |   | The Group,as previously reported |      |   | SSI    |   |    | Elimination* |   |   | The Group, as restated |   |
|-------------------------------------------------------------------|--------|----------------------------------|-----------|--------|--------|--------|---------|--------------|--------|--------|------------------------|--------|
|                                                              |   | RMB                              |      |   | RMB    |   |    | RMB          |   |   | RMB                    |   |
| 2008                                                              |   |                             |      |   |   |   |    |         |   |   |                   |   |
| Results of operation:                                             |   |                             |      |   |   |   |    |         |   |   |                   |   |
| Operating revenues                                                |   |                             | 1,444,291 |   |   |   | 16,869  |         |   |   | (16,869                | )      |   |   | 1,444,291 |   |
| Net income attributable to the equity shareholders of the Company |   |                             | 28,525    |   |   |   | 2,674   |         |   |   | —                |   |   |   | 31,199 |   |
| Basic earnings per share                                          |   |                             | 0.33      |   |   |   | — |         |   |   | —                |   |   |   | 0.36 |   |
| Diluted earnings per share                                        |   |                             | 0.29      |   |   |   | — |         |   |   | —                |   |   |   | 0.32 |   |
|                                                              |   |                             |      |   |   |   |    |         |   |   |                   |   |   |   |   |   |
| 2009                                                              |   |                             |      |   |   |   |    |         |   |   |                   |   |   |   |   |   |
| Results of operation:                                             |   |                             |      |   |   |   |    |         |   |   |                   |   |   |   |   |   |
| Operating revenues                                                |   |                             | 1,345,052 |   |   |   | 10,973  |         |   |   | (10,973                | )      |   |   | 1,345,052 |   |
| Net income attributable to the equity shareholders of the Company |   |                             | 61,760    |   |   |   | 1,387   |         |   |   | —                |   |   |   | 63,147 |   |
| Basic earnings per share                                          |   |                             | 0.71      |   |   |   | — |         |   |   | —                |   |   |   | 0.73 |   |
| Diluted earnings per share                                        |   |                             | 0.71      |   |   |   | — |         |   |   | —                |   |   |   | 0.72 |   |
|                                                              |   |                             |      |   |   |   |    |         |   |   |                   |   |   |   |   |   |
| Financial condition:                                              |   |                             |      |   |   |   |    |         |   |   |                   |   |   |   |   |   |
| Current assets                                                    |   |                             | 201,280   |   |   |   | 1,186   |         |   |   | (987                   | )      |   |   | 201,479 |   |
| Total assets                                                      |   |                             | 877,842   |   |   |   | 21,408  |         |   |   | (987                   | )      |   |   | 898,263 |   |
| Current liabilities                                               |   |                             | 313,419   |   |   |   | 3,489   |         |   |   | (987                   | )      |   |   | 315,921 |   |
| Total liabilities                                                 |   |                             | 478,989   |   |   |   | 15,445  |         |   |   | (987                   | )      |   |   | 493,447 |   |
| Total equity attributable to equity shareholders of the Company   |   |                             | 375,661   |   |   |   | 3,279   |         |   |   | —                |   |   |   | 378,940 |   |

| * | SSI sold its crude oil to the Group. The transactions between the Group and the SSI have been eliminated on combination. All other significant balances and transactions between the Group and SSI have been eliminated on combination. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (ii) | Associates and jointly controlled entities |
|--------|------|--------------------------------------------|

----

----

|   | Buildings                                      |   | 15 to 45 years |   |
|--------|------------------------------------------------|--------|----------------|--------|
|   | Plant, machinery, equipment, and others        |   | 4 to 18 years  |   |
|   | Oil depots, storage tanks and service stations |   | 8 to 25 years  |   |

| (h) | Lease prepayments |
|-----|-------------------|

| (i) | Construction in progress |
|-----|--------------------------|

----

| (j) | Goodwill |
|-----|----------|

| (k) | Investments |
|-----|-------------|

----

| (n) | Impairment of assets |
|-----|----------------------|

----

----

----

----

|                                  |   | Years ended December 31, |   |
|---------------------------------------|--------|--------------------------|--------|
|                                  |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                                  |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Sale of materials, service and others |   |                     | 30,597 |   |   |   | 28,749 |   |   |   | 36,032 |   |
| Rental income                         |   |                     | 491    |   |   |   | 388 |   |   |   | 392 |   |
|                                  |   |                     | 31,088 |   |   |   | 29,137 |   |   |   | 36,424 |   |

| 5. | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|----|----------------------------------------------|

|                        |   | Years ended December 31, |   |
|-----------------------------|--------|--------------------------|--------|
|                        |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                        |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Operating lease charges     |   |                     | 6,993  |   |   |   | 7,564 |   |   |   | 10,452 |   |
| Impairment losses           |   |                     |   |   |   |   |   |   |   |   |   |   |
| - trade accounts receivable |   |                     | 143    |   |   |   | 70 |   |   |   | 48 |   |
| - other receivables         |   |                     | 85     |   |   |   | 222 |   |   |   | 308 |   |

| 6. | PERSONNEL EXPENSES |
|----|--------------------|

|                                          |   | Years ended December 31, |   |
|-----------------------------------------------|--------|--------------------------|--------|
|                                          |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                                          |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Salaries, wages and other benefits            |   |                     | 20,535 |   |   |   | 24,248 |   |   |   | 28,825 |   |
| Contributions to retirement schemes (Note 32) |   |                     | 2,873  |   |   |   | 4,647 |   |   |   | 4,847 |   |
|                                          |   |                     | 23,408 |   |   |   | 28,895 |   |   |   | 33,672 |   |

| 7. | TAXES OTHER THAN INCOME TAX |
|----|-----------------------------|

|                         |   | Years ended December 31, |   |
|------------------------------|--------|--------------------------|--------|
|                         |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                         |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Consumption tax (i)          |   |                     | 17,868 |   |   |   | 110,206 |   |   |   | 117,928 |   |
| Special oil income levy (ii) |   |                     | 32,823 |   |   |   | 7,145 |   |   |   | 19,760 |   |
| City construction tax (iii)  |   |                     | 3,363  |   |   |   | 9,212 |   |   |   | 11,277 |   |
| Education surcharge          |   |                     | 1,838  |   |   |   | 5,043 |   |   |   | 6,339 |   |
| Resources tax                |   |                     | 857    |   |   |   | 857 |   |   |   | 1,318 |   |
| Business tax                 |   |                     | 465    |   |   |   | 421 |   |   |   | 567 |   |
|                         |   |                     | 57,214 |   |   |   | 132,884 |   |   |   | 157,189 |   |

----

| (i)    | Before January 1, 2009, consumption tax is levied on gasoline, diesel, naphtha, solvent oil, lubricant oil, fuel oil and jet fuel oil at a rate of RMB 277.6 per tonne, RMB 117.6 per tonne, RMB 277.0 per tonne, RMB 256.4 per tonne, RMB 225.2 per tonne, RMB 101.5 per tonne and RMB 124.6 per tonne, respectively. Effective from January 1, 2009, the consumption tax rates on gasoline, diesel, naphtha, solvent oil, lubricant oil, fuel oil and jet fuel oil changed to RMB 1,388.0 per tonne, RMB 940.8 per tonne, RMB 1,385.0 per tonne, RMB 1,282.0 per tonne, RMB 1,126.0 per tonne, RMB 812.0 per tonne and RMB 996.8 per tonne, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (ii)   | Special oil income levy is levied on oil exploration and production entities based on the progressive rates ranging from 20% to 40% on the portion of the monthly weighted average sales price of the crude oil produced in the PRC exceeding USD 40 per barrel.                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (iii)  | City construction tax is levied on an entity based on its total amount of value-added tax, consumption tax and business tax.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

|                                                                                                     |   | Years ended December 31, |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                     |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                                                                                                     |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Fines, penalties and compensations                                                                       |   |                     | 106    |   |   |   | 159 |   |   |   | 69 |   |
| Donations                                                                                                |   |                     | 104    |   |   |   | 174 |   |   |   | 177 |   |
| Gain on disposal of property, plant and equipment, net                                                   |   |                     | (231   | ) |   |   | (211 | ) |   |   | (253 | ) |
| Impairment losses on long-lived assets (i)                                                               |   |                     | 8,500  |   |   |   | 7,285 |   |   |   | 14,477 |   |
| Net realized and unrealized (gains) / losses on derivative financialinstruments not qualified as hedging |   |                     | (776   | ) |   |   | (82 | ) |   |   | 55 |   |
| Ineffective portion of change in fair value of cash flow hedges                                          |   |                     | 54     |   |   |   | 16 |   |   |   | (16 | ) |
| Others                                                                                                   |   |                     | 331    |   |   |   | (431 | ) |   |   | (902 | ) |
|                                                                                                     |   |                     | 8,088  |   |   |   | 6,910 |   |   |   | 13,607 |   |

| (i) | The primary factor resulting in the exploration and production (“E&P”) segment impairment losses of RMB 5,991 for the year ended December 31, 2008, that comprised of impairment losses of RMB 4,600 on property, plant and equipment and RMB 1,391 on goodwill in respect of Sinopec Zhongyuan cash generating unit, was downward reserves estimation for certain oil fields resulting from lower oil and gas pricing. The primary factor resulting in the E&P segment impairment losses of RMB 1,595 and RMB 1,889 on property, plant and equipment (Note 16) for the years ended December 31, 2009 and 2010, respectively, and impairment losses of RMB 1,361 on goodwill in respect of Dynamic cash generating unit (Note 18) for the year ended December 31, 2010 was unsuccessful development drilling and high operating and development costs for certain small oil fields. The recoverable amounts were determined based on the present values of the expected future cash flows of the asset or cash generating unit using a pre-tax discount rate of 12.0%, 13.5% and 15.6% for the years ended December 31, 2008, 2009 and 2010, respectively. The oil and gas pricing was a factor used in the determination of the present values of the expected future cash flows of the asset or cash generating unit and had an impact on the recognition of impairment. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Impairment losses recognized for the chemicals segment were RMB 1,511, RMB 3,807 and RMB 5,121 for the years ended December 31, 2008, 2009 and 2010, respectively, and comprised of impairment losses of RMB 1,511, RMB 3,728 and RMB 2,953 on property, plant and equipment (Note 16) for the years ended December 31, 2008, 2009 and 2010, respectively, impairment losses of RMB 79 on other long-term assets for the year ended December 31, 2009, and impairment losses of RMB 2,168 on goodwill primarily in respect of Sinopec Qilu cash generating unit (Note 18) for the year ended December 31, 2010. Impairment losses recognized for refining segment were RMB 270, RMB 396 and RMB 4,902 for the years ended December 31, 2008, 2009 and 2010, respectively, and comprised of impairment losses of RMB 270, RMB 377 and RMB 1,649 on property, plant and equipment (Note 16) for the years ended December 31, 2008, 2009 and 2010, respectively, impairment loss of RMB 2,737 on goodwill in respect of Sinopec Yangzi cash generating unit (Note 18) for the year ended December 31, 2010, and impairment losses of RMB 19 and RMB 516 on construction in progress (Note 17) for the years ended December 31, 2009 and 2010, respectively. These impairment losses relate to certain refining and chemicals production facilities that are held for use. The recoverable amounts were primarily determined based on the asset held for use model using the present value of estimated future cash flows of the production facilities or cash generating unit using the pre-tax discount rates ranging from 10.4% to 11.5%, 11.2% to 12.1%, and 15.2% to 15.9% for the years ended December 31, 2008, 2009 and 2010, respectively. The primary factor resulting in the impairment losses on property, plant and equipment of the refining and chemicals segments was due to higher operating and production costs caused by the increase in the prices of raw materials that are not expected to be covered through an increase in selling price. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Impairment losses recognized on long-lived assets of the marketing and distribution segment of RMB 709, RMB 1,479 and RMB 1,183 for the years ended December 31, 2008, 2009 and 2010, respectively, and comprised of impairment losses of RMB 698, RMB 1,425 and RMB 1,055 on property, plant and equipment (Note 16) for the years ended December 31, 2008, 2009 and 2010, respectively, and impairment losses of RMB 11, RMB 54 and RMB 128 on construction in progress (Note 17) for the years ended December 31, 2008, 2009 and 2010, respectively, primarily relate to certain service stations and certain construction in progress that were closed or abandoned during respective years.  In measuring the amounts of impairment charges, the carrying amounts of these assets were compared to the present value of the expected future cash flows of the assets, as well as information about sales and purchases of similar properties in the same geographic area.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|                                |                                                                                            | Years ended December 31, |         |
|-------------------------------------|-------------------------------------------------------------------------------------------------|--------------------------|--------------|
|                                |                                                                                            | 2008                     |         |   | 2009 |   |   | 2010 |   |
|                                |                                                                                            | RMB                      |         |   | RMB |   |   | RMB |   |
| Interest expense incurred           |                                                                                            |                     | 13,978       |   |   |   | 9,783 |   |   |   | 8,664 |   |
| Less: Interest expense capitalized* |                                                                                            |                     | (1,584       | ) |   |   | (2,621 | ) |   |   | (1,266 | ) |
|                                |                                                                                            |                     | 12,394       |   |   |   | 7,162 |   |   |   | 7,398 |   |
| Accretion expenses (Note 27)        |                                                                                            |                     | 448          |   |   |   | 447 |   |   |   | 574 |   |
| Interest expense                    |                                                                                            |                     | 12,842       |   |   |   | 7,609 |   |   |   | 7,972 |   |
| *                                   | Interest rates per annum at which borrowing costs were Capitalized for construction in progress |                     | 3.8% to 7.1% |   |   | 3.0% to 6.8% |   |   | 3.0% to 6.5% |   |

----

|                                    |   | Years ended December 31, |   |
|-----------------------------------------|--------|--------------------------|--------|
|                                    |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                                    |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Current tax                             |   |                     |   |   |   |   |   |   |   |
| - Provision for the year                |   |                     | 4,102  |   |   |   | 19,229 |   |   |   | 22,177 |   |
| - Under/(over)-provision in prior years |   |                     | 216    |   |   |   | (512 | ) |   |   | (299 | ) |
| Deferred taxation (Note 23)             |   |                     | (694   | ) |   |   | 882 |   |   |   | 3,811 |   |
|                                    |   |                     | 3,624  |   |   |   | 19,599 |   |   |   | 25,689 |   |

|                                                                                                |   | Years ended December 31, |    |
|-----------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
|                                                                                                |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Earnings before income tax                                                                          |   |                     | 33,442  |   |   |   | 86,604 |   |   |   | 103,693 |   |
| Expected PRC income tax expense at statutory tax rates of 25%                                       |   |                     | 8,361   |   |   |   | 21,651 |   |   |   | 25,923 |   |
| Tax effect of differential tax rate (i)                                                             |   |                     | 1,212   |   |   |   | (1,621 | ) |   |   | (1,525 | ) |
| Effect of income taxes from foreign operations in excess of taxes at the PRC statutory tax rate (i) |   |                     | 3,632   |   |   |   | 2,006 |   |   |   | 2,639 |   |
| Tax effect of non-deductible expenses                                                               |   |                     | 865     |   |   |   | 326 |   |   |   | 2,361 |   |
| Tax effect of non-taxable income                                                                    |   |                     | (11,209 | ) |   |   | (1,686 | ) |   |   | (1,839 | ) |
| Tax effect of utilization of previously unrecognized tax losses                                     |   |                     | (401    | ) |   |   | (683 | ) |   |   | (1,663 | ) |
| Tax effect of tax losses not recognized                                                             |   |                     | 948     |   |   |   | 118 |   |   |   | 92 |   |
| Under/(over)-provision in prior years                                                               |   |                     | 216     |   |   |   | (512 | ) |   |   | (299 | ) |
| Actual income tax expense.                                                                          |   |                     | 3,624   |   |   |   | 19,599 |   |   |   | 25,689 |   |

| (i) | The provision for PRC current income tax is based on a statutory income tax rate of 25% of the assessable income of the Group as determined in accordance with the relevant income tax rules and regulations of the PRC, except for certain entities of the Group in the PRC that are taxed at preferential rates of 15% or 22%, and the foreign operation in Angola that is taxed at 50% of the assessable income as determined in accordance with the relevant income tax rules and regulations of Angola. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              |   | Years ended December 31, |    |
|---------------------------------------------------|--------|--------------------------|---------|
|                                              |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
|                                              |   | Before-tax amount        |    |   | Tax benefit |   |   | Net-of-tax amount |   |   | Before-tax amount |   |   | Tax (expense)/benefit |   |   | Net-of-tax amount |   |   | Before-tax amount |   |   | Tax benefit |   |   | Net-of-tax amount |   |
|                                              |   | RMB                      |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
|                                              |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges                                  |   |                     | — |   |   |   | — |   |   |   | — |   |   |   | 65 |   |   |   | (11 | ) |   |   | 54 |   |   |   | (263 | ) |   |   | 42 |   |   |   | (221 | ) |
| Available-for-sale securities                     |   |                     | (296    | ) |   |   | 64 |   |   |   | (232 | ) |   |   | (227 | ) |   |   | 52 |   |   |   | (175 | ) |   |   | (9 | ) |   |   | — |   |   |   | (9 | ) |
| Share of other comprehensive income of associates |   |                     | (2,206  | ) |   |   | — |   |   |   | (2,206 | ) |   |   | 806 |   |   |   | — |   |   |   | 806 |   |   |   | (533 | ) |   |   | — |   |   |   | (533 | ) |
| Foreign currency translation differences          |   |                     | (106    | ) |   |   | — |   |   |   | (106 | ) |   |   | (4 | ) |   |   | — |   |   |   | (4 | ) |   |   | (1,360 | ) |   |   | — |   |   |   | (1,360 | ) |
| Other comprehensive income                        |   |                     | (2,608  | ) |   |   | 64 |   |   |   | (2,544 | ) |   |   | 640 |   |   |   | 41 |   |   |   | 681 |   |   |   | (2,165 | ) |   |   | 42 |   |   |   | (2,123 | ) |

|                                                                                         |   | Years ended December 31, |    |
|----------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                         |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
|                                                                                         |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Cash flow hedges:                                                                            |   |                     |    |   |   |   |   |   |   |
| Effective portion of changes in fair value of hedging instruments recognized during the year |   |                     | 662     |   |   |   | (2,058 | ) |   |   | (682 | ) |
| Amounts transferred to initial carrying amount of hedged items                               |   |                     | — |   |   |   | 257 |   |   |   | 53 |   |
| Reclassification adjustments for amounts transferred to the cost of inventories for the year |   |                     | (662    | ) |   |   | 1,866 |   |   |   | 366 |   |
| Net deferred tax (expense)/benefit recognized in other comprehensive income                  |   |                     | — |   |   |   | (11 | ) |   |   | 42 |   |
| Net movement during the year recognized in other comprehensive income                        |   |                     | — |   |   |   | 54 |   |   |   | (221 | ) |
|                                                                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities:                                                               |   |                     |    |   |   |   |   |   |   |   |   |   |
| Changes in fair value recognized during the year                                             |   |                     | (132    | ) |   |   | (1 | ) |   |   | (6 | ) |
| Gain on disposal transferred to the consolidated statements of income                        |   |                     | (164    | ) |   |   | (226 | ) |   |   | (3 | ) |
| Net deferred tax benefit recognized in other comprehensive income                            |   |                     | 64      |   |   |   | 52 |   |   |   | — |   |
| Net movement during the year recognized in other comprehensive income                        |   |                     | (232    | ) |   |   | (175 | ) |   |   | (9 | ) |
| Share of other comprehensive income of associates:                                           |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net movement during the year recognized in other comprehensive income                        |   |                     | (2,206  | ) |   |   | 806 |   |   |   | (533 | ) |
|                                                                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Foreign currency translation differences:                                                    |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net movement during the year recognized in other comprehensive income                        |   |                     | (106    | ) |   |   | (4 | ) |   |   | (1,360 | ) |

----

| 12. | BASIC AND DILUTED EARNINGS PER SHARE |
|-----|--------------------------------------|

|                                                                                                 |   | 2008   |   |   | 2009   |   |   | 2010   |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                 |   | RMB    |   |   | RMB    |   |   | RMB    |   |
| Net income attributable to ordinary equity shareholders of the Company                               |   |   | 31,199 |   |   |   | 63,147 |   |   |   | 71,800 |   |
| After tax effect of interest expense (net of exchange gain) of the Convertible Bonds                 |   |   | (217   | )      |   |   | 212    |   |   |   | 126 |   |
| After tax effect of unrealized (gain)/loss on embedded derivative component of the Convertible Bonds |   |   | (2,960 | )      |   |   | 164    |   |   |   | 95 |   |
| Net income attributable to ordinary equity shareholders of the Company (diluted)                     |   |   | 28,022 |   |   |   | 63,523 |   |   |   | 72,021 |   |

|                                                          |   | 2008      |           |   | 2009      |   |           | 2010      |   |
|---------------------------------------------------------------|--------|-----------|----------------|--------|-----------|--------|----------------|-----------|--------|
|                                                          |   | Number of |           |   | Number of |   |           | Number of |   |
|                                                          |   | shares    |           |   | shares    |   |           | shares    |   |
| Weighted average number of shares as of December 31           |   |      | 86,702,439,000 |   |      |   | 86,702,439,000 |      |   |   | 86,702,513,472 |   |
| Effect of conversion of the Convertible Bonds                 |   |      | 1,087,360,595  |   |      |   | 1,087,360,595  |      |   |   | 1,087,360,595 |   |
| Weighted average number of shares (diluted) as of December 31 |   |      | 87,789,799,595 |   |      |   | 87,789,799,595 |      |   |   | 87,789,874,067 |   |

----

|                                                        |   | December 31, |   |
|-------------------------------------------------------------|--------|--------------|--------|
|                                                        |   | 2009         |   |   | 2010 |   |
|                                                        |   | RMB          |   |   | RMB |   |
| Amounts due from third parties                              |   |         | 27,481 |   |   |   | 33,681 |   |
| Amounts due from Sinopec Group Company and its affiliates   |   |         | 697    |   |   |   | 1,848 |   |
| Amounts due from associates and jointly controlled entities |   |         | 335    |   |   |   | 8,886 |   |
|                                                        |   |         | 28,513 |   |   |   | 44,415 |   |
| Less: Impairment losses for bad and doubtful debts          |   |         | (1,921 | ) |   |   | (1,322 | ) |
| Trade accounts receivable, net                              |   |         | 26,592 |   |   |   | 43,093 |   |

|                                      |   | 2008   |   |   | 2009   |   |   | 2010   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                      |   | RMB    |   |   | RMB    |   |   | RMB    |   |
| Balance as of January 1                   |   |   | 2,909  |   |   |   | 2,406  |   |   |   | 1,921 |   |
| Impairment losses recognized for the year |   |   | 143    |   |   |   | 70     |   |   |   | 48 |   |
| Reversal of impairment losses             |   |   | (254   | )      |   |   | (245   | )      |   |   | (130 | ) |
| Written off                               |   |   | (392   | )      |   |   | (310   | )      |   |   | (517 | ) |
| Balance as of December 31                 |   |   | 2,406  |   |   |   | 1,921  |   |   |   | 1,322 |   |

----

|                                                   |   | December 31, |    |
|--------------------------------------------------------|--------|--------------|---------|
|                                                   |   | 2009         |    |   | 2010 |   |
|                                                   |   | RMB          |    |   | RMB |   |
| Crude oil and other raw materials                      |   |         | 87,587  |   |   |   | 84,428 |   |
| Work in progress                                       |   |         | 11,609  |   |   |   | 13,089 |   |
| Finished goods                                         |   |         | 39,737  |   |   |   | 55,945 |   |
| Spare parts and consumables                            |   |         | 3,832   |   |   |   | 4,175 |   |
|                                                   |   |         | 142,765 |   |   |   | 157,637 |   |
| Less: Allowance for diminution in value of inventories |   |         | (1,038  | ) |   |   | (1,091 | ) |
|                                                   |   |         | 141,727 |   |   |   | 156,546 |   |

|                              |   | 2008   |   |   | 2009   |   |   | 2010   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                              |   | RMB    |   |   | RMB    |   |   | RMB    |   |
| Balance as of January 1           |   |   | 4,572  |   |   |   | 9,189  |   |   |   | 1,038 |   |
| Allowance for the year            |   |   | 8,777  |   |   |   | 401    |   |   |   | 1,087 |   |
| Reversal of allowance on disposal |   |   | (64    | )      |   |   | (185   | )      |   |   | (77 | ) |
| Written off                       |   |   | (4,096 | )      |   |   | (8,367 | )      |   |   | (957 | ) |
| Balance as of December 31         |   |   | 9,189  |   |   |   | 1,038  |   |   |   | 1,091 |   |

|                                                                     |   | December31, |    |
|--------------------------------------------------------------------------|--------|-------------|---------|
|                                                                     |   | 2009        |    |   | 2010 |   |
|                                                                     |   | RMB         |    |   | RMB |   |
| Advances to third parties                                                |   |        | 1,214   |   |   |   | 937 |   |
| Amounts due from Sinopec Group Company and its affiliates                |   |        | 787     |   |   |   | 930 |   |
| Amounts due from associates and jointly controlled entities              |   |        | 23      |   |   |   | 2,460 |   |
| Other receivables                                                        |   |        | 1,181   |   |   |   | 858 |   |
| Loans and receivables                                                    |   |        | 3,205   |   |   |   | 5,185 |   |
|                                                                     |   |        |    |   |   |   |   |   |
| Purchase deposits and other assets                                       |   |        | 2,320   |   |   |   | 4,469 |   |
| Prepayments in connection with construction work and equipment purchases |   |        | 1,906   |   |   |   | 988 |   |
| Prepaid value-added tax and customs duty                                 |   |        | 12,577  |   |   |   | 13,072 |   |
| Financial assets held for trading                                        |   |        | — |   |   |   | 2,450 |   |
| Available-for-sale financial assets                                      |   |        | 700     |   |   |   | — |   |
| Derivative financial instruments – hedging                         |   |        | 142     |   |   |   | 148 |   |
| Derivative financial instruments – non-hedging                     |   |        | 182     |   |   |   | 188 |   |
|                                                                     |   |        | 21,032  |   |   |   | 26,500 |   |

----

|                                                   |   | Explorationandproduction |    |   | Refining |   |    | Marketinganddistribution |   |   | Chemicals |   |   | Corporateandothers |    |   | Total  |   |
|--------------------------------------------------------|--------|--------------------------|---------|--------|----------|--------|---------|--------------------------|--------|--------|-----------|--------|--------|--------------------|---------|--------|--------|--------|
|                                                   |   | RMB                      |    |   | RMB      |   |    | RMB                      |   |   | RMB       |   |   | RMB                |    |   | RMB    |   |
|                                                   |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |
| Cost:                                                  |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |
| Balance as of January 1, 2009                          |   |                     | 363,535 |   |     |   | 179,551 |                     |   |   | 107,657   |   |   |               | 189,478 |   |   |   | 8,741 |   |   |   | 848,962 |   |
| Additions                                              |   |                     | 2,143   |   |     |   | 178     |                     |   |   | 693       |   |   |               | 754     |   |   |   | 20 |   |   |   | 3,788 |   |
| Transferred from construction in progress              |   |                     | 63,587  |   |     |   | 18,291  |                     |   |   | 9,690     |   |   |               | 15,146  |   |   |   | 1,170 |   |   |   | 107,884 |   |
| Acquisitions (ii)                                      |   |                     | 60      |   |     |   | 999     |                     |   |   | —   |   |   |               | — |   |   |   | 1,722 |   |   |   | 2,781 |   |
| Reclassification                                       |   |                     | — |   |     |   | 6,008   |                     |   |   | 214       |   |   |               | (6,089  | )      |   |   | (133 | ) |   |   | — |   |
| Exchange adjustment                                    |   |                     | (24     | )      |     |   | — |                     |   |   | (13       | )      |   |               | — |   |   |   | (4 | ) |   |   | (41 | ) |
| Reclassification to lease prepayments and other assets |   |                     | — |   |     |   | — |                     |   |   | (650      | )      |   |               | — |   |   |   | (16 | ) |   |   | (666 | ) |
| Disposals                                              |   |                     | (606    | )      |     |   | (1,812  | )                        |   |   | (1,511    | )      |   |               | (4,333  | )      |   |   | (192 | ) |   |   | (8,454 | ) |
| Balance as of December 31, 2009                        |   |                     | 428,695 |   |     |   | 203,215 |                     |   |   | 116,080   |   |   |               | 194,956 |   |   |   | 11,308 |   |   |   | 954,254 |   |
|                                                   |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |   |   |   |   |   |   |
| Balance as of January 1, 2010                          |   |                     | 428,695 |   |     |   | 203,215 |                     |   |   | 116,080   |   |   |               | 194,956 |   |   |   | 11,308 |   |   |   | 954,254 |   |
| Additions                                              |   |                     | 4,021   |   |     |   | 123     |                     |   |   | 1,100     |   |   |               | 88      |   |   |   | 255 |   |   |   | 5,587 |   |
| Transferred from construction in progress              |   |                     | 67,922  |   |     |   | 11,922  |                     |   |   | 12,370    |   |   |               | 22,964  |   |   |   | 2,872 |   |   |   | 118,050 |   |
| Reclassification                                       |   |                     | 343     |   |     |   | 144     |                     |   |   | 271       |   |   |               | (169    | )      |   |   | (589 | ) |   |   | — |   |
| Contributed to a jointly controlled entity             |   |                     | — |   |     |   | — |                     |   |   | —   |   |   |               | (290    | )      |   |   | — |   |   |   | (290 | ) |
| Reclassification to lease prepayments and other assets |   |                     | — |   |     |   | (39     | )                        |   |   | (451      | )      |   |               | — |   |   |   | (146 | ) |   |   | (636 | ) |
| Exchange adjustment                                    |   |                     | (809    | )      |     |   | — |                     |   |   | (103      | )      |   |               | — |   |   |   | (4 | ) |   |   | (916 | ) |
| Disposals                                              |   |                     | (370    | )      |     |   | (2,980  | )                        |   |   | (2,144    | )      |   |               | (2,603  | )      |   |   | (141 | ) |   |   | (8,238 | ) |
| Balance as of December 31, 2010                        |   |                     | 499,802 |   |     |   | 212,385 |                     |   |   | 127,123   |   |   |               | 214,946 |   |   |   | 13,555 |   |   |   | 1,067,811 |   |
|                                                   |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |   |   |   |   |   |   |
| Accumulated depreciation:                              |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |   |   |   |   |   |   |
| Balance as of January 1, 2009                          |   |                     | 177,059 |   |     |   | 84,976  |                     |   |   | 28,815    |   |   |               | 122,403 |   |   |   | 3,068 |   |   |   | 416,321 |   |
| Depreciation charge for the year                       |   |                     | 28,075  |   |     |   | 10,212  |                     |   |   | 5,578     |   |   |               | 8,313   |   |   |   | 866 |   |   |   | 53,044 |   |
| Acquisitions (ii)                                      |   |                     | — |   |     |   | 591     |                     |   |   | —   |   |   |               | — |   |   |   | 159 |   |   |   | 750 |   |
| Impairment losses for the year (Note 8 (i))            |   |                     | 1,595   |   |     |   | 377     |                     |   |   | 1,425     |   |   |               | 3,728   |   |   |   | 8 |   |   |   | 7,133 |   |
| Reclassification                                       |   |                     | — |   |     |   | (44     | )                        |   |   | 91        |   |   |               | 2       |   |   |   | (49 | ) |   |   | — |   |
| Exchange adjustment                                    |   |                     | (6      | )      |     |   | — |                     |   |   | (3        | )      |   |               | — |   |   |   | (2 | ) |   |   | (11 | ) |
| Reclassification to lease prepayments and other assets |   |                     | — |   |     |   | — |                     |   |   | (80       | )      |   |               | — |   |   |   | — |   |   |   | (80 | ) |
| Written back on disposals                              |   |                     | (590    | )      |     |   | (1,693  | )                        |   |   | (1,346    | )      |   |               | (3,906  | )      |   |   | (183 | ) |   |   | (7,718 | ) |
| Balance as of December 31, 2009                        |   |                     | 206,133 |   |     |   | 94,419  |                     |   |   | 34,480    |   |   |               | 130,540 |   |   |   | 3,867 |   |   |   | 469,439 |   |
|                                                   |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |   |   |   |   |   |   |
| Balance as of January 1, 2010                          |   |                     | 206,133 |   |     |   | 94,419  |                     |   |   | 34,480    |   |   |               | 130,540 |   |   |   | 3,867 |   |   |   | 469,439 |   |
| Depreciation charge for the year                       |   |                     | 31,393  |   |     |   | 11,227  |                     |   |   | 5,946     |   |   |               | 8,483   |   |   |   | 925 |   |   |   | 57,974 |   |
| Impairment losses for the year (Note 8 (i))            |   |                     | 1,889   |   |     |   | 1,649   |                     |   |   | 1,055     |   |   |               | 2,953   |   |   |   | 21 |   |   |   | 7,567 |   |
| Reclassification                                       |   |                     | 12      |   |     |   | (3      | )                        |   |   | 25        |   |   |               | (145    | )      |   |   | 111 |   |   |   | — |   |
| Reclassification to lease prepayments and other assets |   |                     | — |   |     |   | (3      | )                        |   |   | (68       | )      |   |               | — |   |   |   | (12 | ) |   |   | (83 | ) |
| Exchange adjustment                                    |   |                     | (218    | )      |     |   | — |                     |   |   | (41       | )      |   |               | — |   |   |   | (1 | ) |   |   | (260 | ) |
| Written back on disposals                              |   |                     | (177    | )      |     |   | (2,778  | )                        |   |   | (1,953    | )      |   |               | (2,499  | )      |   |   | (119 | ) |   |   | (7,526 | ) |
| Balance as of December 31, 2010                        |   |                     | 239,032 |   |     |   | 104,511 |                     |   |   | 39,444    |   |   |               | 139,332 |   |   |   | 4,792 |   |   |   | 527,111 |   |
|                                                   |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |   |   |   |   |   |   |
| Net book value:                                        |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |   |   |   |   |   |   |
| Balance as of January 1, 2009                          |   |                     | 186,476 |   |     |   | 94,575  |                     |   |   | 78,842    |   |   |               | 67,075  |   |   |   | 5,673 |   |   |   | 432,641 |   |
| Balance as of December 31, 2009                        |   |                     | 222,562 |   |     |   | 108,796 |                     |   |   | 81,600    |   |   |               | 64,416  |   |   |   | 7,441 |   |   |   | 484,815 |   |
| Balance as of December 31, 2010                        |   |                     | 260,770 |   |     |   | 107,874 |                     |   |   | 87,679    |   |   |               | 75,614  |   |   |   | 8,763 |   |   |   | 540,700 |   |

----

|                                                   |   | Buildings |    |   | Oil andgasproperties |   |    | Oil depots,storage tanksand servicestations |   |   | Plant,machinery,equipmentand others |   |   | Total  |    |
|--------------------------------------------------------|--------|-----------|---------|--------|----------------------|--------|---------|---------------------------------------------|--------|--------|-------------------------------------|--------|--------|--------|---------|
|                                                   |   | RMB       |    |   | RMB                  |   |    | RMB                                         |   |   | RMB                                 |   |   | RMB    |    |
|                                                   |   |      |    |   |                 |   |    |                                        |   |   |                                |   |   |   |    |
| Cost:                                                  |   |      |    |   |                 |   |    |                                        |   |   |                                |   |   |   |    |
| Balance as of January 1, 2009                          |   |      | 52,561  |   |                 |   | 317,307 |                                        |   |   | 116,766                             |   |   |   | 362,328 |   |   |   | 848,962 |   |
| Additions                                              |   |      | 372     |   |                 |   | 2,022   |                                        |   |   | 413                                 |   |   |   | 981     |   |   |   | 3,788 |   |
| Transferred from construction in progress              |   |      | 6,847   |   |                 |   | 41,213  |                                        |   |   | 23,840                              |   |   |   | 35,984  |   |   |   | 107,884 |   |
| Acquisitions (ii)                                      |   |      | 1,912   |   |                 |   | — |                                        |   |   | 342                                 |   |   |   | 527     |   |   |   | 2,781 |   |
| Reclassification                                       |   |      | (63     | )      |                 |   | — |                                        |   |   | (2,505                              | )      |   |   | 2,568   |   |   |   | — |   |
| Exchange adjustment                                    |   |      | (17     | )      |                 |   | (24     | )                                           |   |   | —                             |   |   |   | — |   |   |   | (41 | ) |
| Reclassification to lease prepayments and other assets |   |      | (81     | )      |                 |   | — |                                        |   |   | (585                                | )      |   |   | — |   |   |   | (666 | ) |
| Disposals                                              |   |      | (389    | )      |                 |   | — |                                        |   |   | (1,565                              | )      |   |   | (6,500  | ) |   |   | (8,454 | ) |
| Balance as of December 31, 2009                        |   |      | 61,142  |   |                 |   | 360,518 |                                        |   |   | 136,706                             |   |   |   | 395,888 |   |   |   | 954,254 |   |
|                                                   |   |      |    |   |                 |   |    |                                        |   |   |                                |   |   |   |    |   |   |   |   |   |
| Balance as of January 1, 2010                          |   |      | 61,142  |   |                 |   | 360,518 |                                        |   |   | 136,706                             |   |   |   | 395,888 |   |   |   | 954,254 |   |
| Additions                                              |   |      | 259     |   |                 |   | 3,421   |                                        |   |   | 1,023                               |   |   |   | 884     |   |   |   | 5,587 |   |
| Transferred from construction in progress              |   |      | 5,150   |   |                 |   | 58,465  |                                        |   |   | 17,889                              |   |   |   | 36,546  |   |   |   | 118,050 |   |
| Reclassification                                       |   |      | 996     |   |                 |   | 5       |                                        |   |   | 325                                 |   |   |   | (1,326  | ) |   |   | — |   |
| Contributed to a jointly controlled entity             |   |      | (290    | )      |                 |   | — |                                        |   |   | —                             |   |   |   | — |   |   |   | (290 | ) |
| Reclassification to lease prepayments and other assets |   |      | (204    | )      |                 |   | — |                                        |   |   | (389                                | )      |   |   | (43     | ) |   |   | (636 | ) |
| Exchange adjustment                                    |   |      | (33     | )      |                 |   | (809    | )                                           |   |   | (22                                 | )      |   |   | (52     | ) |   |   | (916 | ) |
| Disposals                                              |   |      | (767    | )      |                 |   | — |                                        |   |   | (1,675                              | )      |   |   | (5,796  | ) |   |   | (8,238 | ) |
| Balance as of December 31, 2010                        |   |      | 66,253  |   |                 |   | 421,600 |                                        |   |   | 153,857                             |   |   |   | 426,101 |   |   |   | 1,067,811 |   |
|                                                   |   |      |    |   |                 |   |    |                                        |   |   |                                |   |   |   |    |   |   |   |   |   |
| Accumulated depreciation:                              |   |      |    |   |                 |   |    |                                        |   |   |                                |   |   |   |    |   |   |   |   |   |
| Balance as of January 1, 2009                          |   |      | 27,507  |   |                 |   | 147,320 |                                        |   |   | 28,880                              |   |   |   | 212,614 |   |   |   | 416,321 |   |
| Depreciation charge for the year                       |   |      | 2,309   |   |                 |   | 25,930  |                                        |   |   | 5,936                               |   |   |   | 18,869  |   |   |   | 53,044 |   |
| Acquisitions (ii)                                      |   |      | 213     |   |                 |   | — |                                        |   |   | 292                                 |   |   |   | 245     |   |   |   | 750 |   |
| Impairment losses for the year                         |   |      | 579     |   |                 |   | 1,553   |                                        |   |   | 1,076                               |   |   |   | 3,925   |   |   |   | 7,133 |   |
| Reclassification                                       |   |      | (63     | )      |                 |   | — |                                        |   |   | (505                                | )      |   |   | 568     |   |   |   | — |   |
| Exchange adjustment                                    |   |      | (5      | )      |                 |   | (6      | )                                           |   |   | —                             |   |   |   | — |   |   |   | (11 | ) |
| Reclassification to lease prepayments and other assets |   |      | (8      | )      |                 |   | — |                                        |   |   | (72                                 | )      |   |   | — |   |   |   | (80 | ) |
| Written back on disposals                              |   |      | (340    | )      |                 |   | — |                                        |   |   | (1,401                              | )      |   |   | (5,977  | ) |   |   | (7,718 | ) |
| Balance as of December 31, 2009                        |   |      | 30,192  |   |                 |   | 174,797 |                                        |   |   | 34,206                              |   |   |   | 230,244 |   |   |   | 469,439 |   |
|                                                   |   |      |    |   |                 |   |    |                                        |   |   |                                |   |   |   |    |   |   |   |   |   |
| Balance as of January 1, 2010                          |   |      | 30,192  |   |                 |   | 174,797 |                                        |   |   | 34,206                              |   |   |   | 230,244 |   |   |   | 469,439 |   |
| Depreciation charge for the year                       |   |      | 2,442   |   |                 |   | 28,196  |                                        |   |   | 6,857                               |   |   |   | 20,479  |   |   |   | 57,974 |   |
| Impairment losses for the year                         |   |      | 660     |   |                 |   | 1,789   |                                        |   |   | 1,070                               |   |   |   | 4,048   |   |   |   | 7,567 |   |
| Reclassification                                       |   |      | 263     |   |                 |   | (9      | )                                           |   |   | (14                                 | )      |   |   | (240    | ) |   |   | — |   |
| Reclassification to lease prepayments and other assets |   |      | — |   |                 |   | — |                                        |   |   | (77                                 | )      |   |   | (6      | ) |   |   | (83 | ) |
| Exchange adjustment                                    |   |      | (14     | )      |                 |   | (218    | )                                           |   |   | (8                                  | )      |   |   | (20     | ) |   |   | (260 | ) |
| Written back on disposals                              |   |      | (499    | )      |                 |   | — |                                        |   |   | (1,533                              | )      |   |   | (5,494  | ) |   |   | (7,526 | ) |
| Balance as of December 31, 2010                        |   |      | 33,044  |   |                 |   | 204,555 |                                        |   |   | 40,501                              |   |   |   | 249,011 |   |   |   | 527,111 |   |
|                                                   |   |      |    |   |                 |   |    |                                        |   |   |                                |   |   |   |    |   |   |   |   |   |
| Net book value:                                        |   |      |    |   |                 |   |    |                                        |   |   |                                |   |   |   |    |   |   |   |   |   |
| Balance as of January 1, 2009                          |   |      | 25,054  |   |                 |   | 169,987 |                                        |   |   | 87,886                              |   |   |   | 149,714 |   |   |   | 432,641 |   |
| Balance as of December 31, 2009                        |   |      | 30,950  |   |                 |   | 185,721 |                                        |   |   | 102,500                             |   |   |   | 165,644 |   |   |   | 484,815 |   |
| Balance as of December 31, 2010                        |   |      | 33,209  |   |                 |   | 217,045 |                                        |   |   | 113,356                             |   |   |   | 177,090 |   |   |   | 540,700 |   |

| (i) | The additions to the exploration and production segment and oil and gas properties of the Group for the years ended December 31, 2009 and 2010 included RMB 2,013 and RMB 3,389, respectively, of the estimated dismantlement costs for site restoration (Note 27). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | During the year ended December 31, 2009, the Group acquired certain property, plant and equipment from Sinopec Group Company (Note 31). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                   |   | Explorationandproduction |    |   | Refining |   |    | Marketinganddistribution |   |   | Chemicals |   |   | Corporateandothers |    |   | Total  |   |
|--------------------------------------------------------|--------|--------------------------|---------|--------|----------|--------|---------|--------------------------|--------|--------|-----------|--------|--------|--------------------|---------|--------|--------|--------|
|                                                   |   | RMB                      |    |   | RMB      |   |    | RMB                      |   |   | RMB       |   |   | RMB                |    |   | RMB    |   |
| Balance as of January 1, 2009                          |   |                     | 56,542  |   |     |   | 18.091  |                     |   |   | 14,302    |   |   |               | 29,765  |   |   |   | 3,766 |   |   |   | 122,466 |   |
| Additions                                              |   |                     | 58,882  |   |     |   | 14.600  |                     |   |   | 15,547    |   |   |               | 25,083  |   |   |   | 1,379 |   |   |   | 115,491 |   |
| Dry hole costs written off                             |   |                     | (4,761  | )      |     |   | — |                     |   |   | —   |   |   |               | — |   |   |   | — |   |   |   | (4,761 | ) |
| Transferred to property, plant and equipment           |   |                     | (63,587 | )      |     |   | (18.291 | )                        |   |   | (9,690    | )      |   |               | (15,146 | )      |   |   | (1,170 | ) |   |   | (107,884 | ) |
| Reclassification to lease prepayments and other assets |   |                     | (190    | )      |     |   | (744    | )                        |   |   | (2,773    | )      |   |               | (1,113  | )      |   |   | (44 | ) |   |   | (4,864 | ) |
| Impairment losses for the year (Note 8 (i))            |   |                     | — |   |     |   | (19     | )                        |   |   | (54       | )      |   |               | — |   |   |   | — |   |   |   | (73 | ) |
| Balance as of December 31, 2009                        |   |                     | 46.886  |   |     |   | 13,637  |                     |   |   | 17,332    |   |   |               | 38,589  |   |   |   | 3,931 |   |   |   | 120,375 |   |
|                                                   |   |                     |    |   |     |   |    |                     |   |   |      |   |   |               |    |   |   |   |   |   |   |   |   |   |
| Balance as of January 1, 2010                          |   |                     | 46,886  |   |     |   | 13,637  |                     |   |   | 17,332    |   |   |               | 38,589  |   |   |   | 3,931 |   |   |   | 120,375 |   |
| Additions                                              |   |                     | 56,924  |   |     |   | 19,746  |                     |   |   | 25,017    |   |   |               | 13,183  |   |   |   | 1,620 |   |   |   | 116,490 |   |
| Transferred to a jointly controlled entity             |   |                     | — |   |     |   | — |                     |   |   | —   |   |   |               | (17,459 | )      |   |   | — |   |   |   | (17,459 | ) |
| Reclassification                                       |   |                     | — |   |     |   | — |                     |   |   | 219       |   |   |               | (219    | )      |   |   | — |   |   |   | — |   |
| Dry hole costs written off                             |   |                     | (4,986  | )      |     |   | — |                     |   |   | —   |   |   |               | — |   |   |   | — |   |   |   | (4,986 | ) |
| Transferred to property, plant and equipment           |   |                     | (67,922 | )      |     |   | (11,922 | )                        |   |   | (12,370   | )      |   |               | (22,964 | )      |   |   | (2,872 | ) |   |   | (118,050 | ) |
| Reclassification to lease prepayments and other assets |   |                     | (528    | )      |     |   | (270    | )                        |   |   | (2,758    | )      |   |               | (2,145  | )      |   |   | (426 | ) |   |   | (6,127 | ) |
| Impairment losses for the year (Note 8 (i))            |   |                     | — |   |     |   | (516    | )                        |   |   | (128      | )      |   |               | — |   |   |   | — |   |   |   | (644 | ) |
| Balance as of December 31, 2010                        |   |                     | 30,374  |   |     |   | 20,675  |                     |   |   | 27,312    |   |   |               | 8,985   |   |   |   | 2,253 |   |   |   | 89,599 |   |

|                                                                                                                                     |   | 2008   |   |   | 2009   |   |   | 2010   |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                     |   | RMB    |   |   | RMB    |   |   | RMB    |   |
| At beginning of year.                                                                                                                    |   |   | 6,294  |   |   |   | 7,833  |   |   |   | 8,823 |   |
| Additions, net of amount that were capitalized and subsequently expensed in the same year, pending the determination of proved reserves. |   |   | 4,613  |   |   |   | 5,008  |   |   |   | 6,121 |   |
| Transferred to oil and gas properties based on the determination of proved reserves.                                                     |   |   | (1,008 | )      |   |   | (1,072 | )      |   |   | (1,158 | ) |
| Dry hole costs written off                                                                                                               |   |   | (2,066 | )      |   |   | (2,946 | )      |   |   | (3,134 | ) |
| At end of year.                                                                                                                          |   |   | 7,833  |   |   |   | 8,823  |   |   |   | 10,652 |   |

|             |   | December 31, |   |
|------------------|--------|--------------|--------|
|             |   | 2008         |   |   | 2009 |   |   | 2010 |   |
|             |   | RMB          |   |   | RMB |   |   | RMB |   |
| One year or less |   |         | 7,113  |   |   |   | 7,625 |   |   |   | 9,530 |   |
| Over one year    |   |         | 720    |   |   |   | 1,198 |   |   |   | 1,122 |   |
|             |   |         | 7,833  |   |   |   | 8,823 |   |   |   | 10,652 |   |

----

|                           |   | 2009   |    |   | 2010   |   |
|--------------------------------|--------|--------|---------|--------|--------|--------|
|                           |   | RMB    |    |   | RMB    |   |
| Cost:                          |   |   |    |   |   |   |
| Balance as of January 1        |   |   | 15,628  |   |   |   | 15,463 |   |
| Additions                      |   |   | 241     |   |   |   | 441 |   |
| Disposals                      |   |   | (406    | )      |   |   | (9 | ) |
| Exchange adjustment            |   |   | — |   |   |   | (31 | ) |
| Balance as of December 31      |   |   | 15,463  |   |   |   | 15,864 |   |
|                           |   |   |    |   |   |   |   |   |
| Accumulated impairment losses: |   |   |    |   |   |   |   |   |
| Balance as of January 1        |   |   | (1,391  | )      |   |   | (1,391 | ) |
| Impairment losses for the year |   |   | — |   |   |   | (6,266 | ) |
| Balance as of December 31      |   |   | (1,391  | )      |   |   | (7,657 | ) |
|                           |   |   |    |   |   |   |   |   |
| Net book value                 |   |   |    |   |   |   |   |   |
| Balance as of December 31      |   |   | 14,072  |   |   |   | 8,207 |   |

|                                                                         |   | December 31, |   |
|------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                         |   | 2009         |   |   | 2010 |   |
|                                                                         |   | RMB          |   |   | RMB |   |
| Sinopec Beijing Yanshan Branch (“Sinopec Yanshan”)               |   |         | 1,157  |   |   |   | 1,157 |   |
| Sinopec Zhenhai Refining and Chemical Branch (“Sinopec Zhenhai”) |   |         | 3,952  |   |   |   | 3,952 |   |
| Hong Kong service stations                                                   |   |         | 926    |   |   |   | 895 |   |
| Sinopec Qilu Branch (“Sinopec Qilu”)                             |   |         | 2,159  |   |   |   | — |   |
| Sinopec Yangzi Petrochemical Company Limited (“Sinopec Yangzi”)  |   |         | 2,737  |   |   |   | — |   |
| Sinopec Shengli Oil Field Dynamic Company Limited (“Dynamic”)    |   |         | 1,361  |   |   |   | — |   |
| Multiple units without individually significant goodwill                     |   |         | 1,780  |   |   |   | 2,203 |   |
|                                                                         |   |         | 14,072 |   |   |   | 8,207 |   |

----

|                |   | December 31, |   |
|---------------------|--------|--------------|--------|
|                |   | 2009         |   |   | 2010 |   |
|                |   | RMB          |   |   | RMB |   |
| Share of net assets |   |         | 18,162 |   |   |   | 22,815 |   |

| Name of company                                             |   | Form of business structure |   | Particulars of issuedand paid up capital |   | Percentage of equity held by the Company |   | Percentage of equity held by the Company’s subsidiaries |   | Principal activities                                                                   |
|-------------------------------------------------------------|--------|----------------------------|--------|------------------------------------------|--------|------------------------------------------|--------|---------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|
|                                                        |   |                       |   |                                     |   | %                                        |   | %                                                             |   |                                                                                   |
| Sinopec Finance Company Limited                             |   | Incorporated               |   | Registered capitalRMB 8,000,000,000      |   | 49.00                                    |   | —                                                       |   | Provision of non-banking financial services                                            |
|                                                        |   |                       |   |                                     |   |                                     |   |                                                          |   |                                                                                   |
| China Aviation Oil Supply Company Limited                   |   | Incorporated               |   | Registered capitalRMB 3,800,000,000      |   | —                                  |   | 29.00                                                         |   | Marketing and distribution of refined petroleum products                               |
|                                                        |   |                       |   |                                     |   |                                     |   |                                                          |   |                                                                                   |
| Zhongtian Synergetic Energy Company Limited                 |   | Incorporated               |   | Registered capitalRMB 3,678,400,000      |   | 38.75                                    |   | —                                                       |   | Manufacturing of coal-chemical products                                                |
|                                                        |   |                       |   |                                     |   |                                     |   |                                                          |   |                                                                                   |
| Shanghai Chemical Industry Park Development Company Limited |   | Incorporated               |   | Registered capitalRMB 2,372,439,000      |   | —                                  |   | 38.26                                                         |   | Planning, development and operation of the Chemical Industry Park in Shanghai, the PRC |
|                                                        |   |                       |   |                                     |   |                                     |   |                                                          |   |                                                                                   |
| Shanghai Petroleum Company Limited                          |   | Incorporated               |   | Registered capitalRMB 900,000,000        |   | 30.00                                    |   | —                                                       |   | Exploration and production of crude oil and natural gas                                |

----

|                |   | December 31, |   |
|---------------------|--------|--------------|--------|
|                |   | 2009         |   |   | 2010 |   |
|                |   | RMB          |   |   | RMB |   |
| Share of net assets |   |         | 13,928 |   |   |   | 20,199 |   |

| Name of company                                                |   | Form of business structure |   | Particulars of issued and paid up capital |   | Percentage of equity held by the Company |   | Percentage of equity held by the Company’s subsidiaries |   | Principal activities                                     |
|----------------------------------------------------------------|--------|----------------------------|--------|-------------------------------------------|--------|------------------------------------------|--------|---------------------------------------------------------------|--------|----------------------------------------------------------|
|                                                           |   |                       |   |                                      |   | %                                        |   | %                                                             |   |                                                     |
| Shanghai Secco Petrochemical Company Limited                   |   | Incorporated               |   | Registered capitalUSD 901,440,964         |   | 30.00                                    |   | 20.00                                                         |   | Manufacturing and distribution of petrochemical products |
| BASF-YPC Company Limited                                       |   | Incorporated               |   | Registered capitalRMB 13,633,770,000      |   | 30.00                                    |   | 10.00                                                         |   | Manufacturing and distribution of petrochemical products |
| Fujian Refining and Petrochemical Company Limited              |   | Incorporated               |   | Registered capitalRMB 12,806,000,000      |   | —                                  |   | 50.00                                                         |   | Manufacturing and distribution of petrochemical products |
| Sinopec SABIC Tianjin Petrochemical  Company limited |   | Incorporated               |   | Registered capitalRMB 6,120,000,000       |   | 50.00                                    |   | —                                                       |   | Manufacturing and distribution of petrochemical products |

|                  |   | Years ended December 31, |    |
|-----------------------|--------|--------------------------|---------|
|                  |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
|                  |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Results of operation: |   |                     |    |   |   |   |   |   |   |
| Operating revenue     |   |                     | 27,417  |   |   |   | 25,141 |   |   |   | 61,523 |   |
| Expenses              |   |                     | (28,371 | ) |   |   | (23,901 | ) |   |   | (58,344 | ) |
| Net (loss) / income   |   |                     | (954    | ) |   |   | 1,240 |   |   |   | 3,179 |   |

|                    |   | December 31, |    |
|-------------------------|--------|--------------|---------|
|                    |   | 2009         |    |   | 2010 |   |
|                    |   | RMB          |    |   | RMB |   |
| Financial condition:    |   |         |    |   |   |   |
| Current assets          |   |         | 9,857   |   |   |   | 15,677 |   |
| Non-current assets      |   |         | 32,353  |   |   |   | 39,274 |   |
| Current liabilities     |   |         | (9,038  | ) |   |   | (11,239 | ) |
| Non-current liabilities |   |         | (19,244 | ) |   |   | (23,513 | ) |
| Net assets              |   |         | 13,928  |   |   |   | 20,199 |   |

|                                                     |   | Years ended December 31, |   |
|----------------------------------------------------------|--------|--------------------------|--------|
|                                                     |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                                                     |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Cash flows:                                              |   |                     |   |   |   |   |   |   |   |
| Net cash (used in) / generated from operating activities |   |                     | (2,046 | ) |   |   | 345 |   |   |   | 5,800 |   |
| Net cash used in investing activities                    |   |                     | (5,872 | ) |   |   | (3,905 | ) |   |   | (10,505 | ) |
| Net cash generated from financing activities             |   |                     | 7,999  |   |   |   | 3,911 |   |   |   | 6,430 |   |
| Net increase in cash and cash equivalents                |   |                     | 81     |   |   |   | 351 |   |   |   | 1,725 |   |

----

|                                                   |   | December 31, |   |
|--------------------------------------------------------|--------|--------------|--------|
|                                                   |   | 2009         |   |   | 2010 |   |
|                                                   |   | RMB          |   |   | RMB |   |
| Available-for-sale financial assets                    |   |         |   |   |   |   |
| - Equity securities, listed and at quoted market price |   |         | 61     |   |   |   | 52 |   |
| - Investment in other available-for-sale security      |   |         | 700    |   |   |   | — |   |
| Investments in equity securities, unlisted and at cost |   |         | 1,610  |   |   |   | 2,207 |   |
|                                                   |   |         | 2,371  |   |   |   | 2,259 |   |
| Less: Impairment losses for investments                |   |         | (197   | ) |   |   | (184 | ) |
|                                                   |   |         | 2,174  |   |   |   | 2,075 |   |

|                                                   |   | Assets       |    |   | Liabilities  |   |    | Net balance  |   |
|--------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|---------|--------------|--------|
|                                                   |   | December 31, |    |   | December 31, |   |    | December 31, |   |
|                                                   |   | 2009         |    |   | 2010         |   |    | 2009         |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |
|                                                   |   | RMB          |    |   | RMB          |   |    | RMB          |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Current                                                |   |         |    |   |         |   |    |         |   |   |   |   |   |   |   |   |   |   |
| Receivables and inventories                            |   |         | 3,207   |   |         |   | 3,507   |         |   |   | — |   |   |   | — |   |   |   | 3,207 |   |   |   | 3,507 |   |
| Accruals                                               |   |         | 815     |   |         |   | 1,588   |         |   |   | — |   |   |   | — |   |   |   | 815 |   |   |   | 1,588 |   |
| Cash flow hedges                                       |   |         | 7       |   |         |   | 31      |         |   |   | (18 | ) |   |   | — |   |   |   | (11 | ) |   |   | 31 |   |
| Non-current                                            |   |         |    |   |         |   |    |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment                          |   |         | 5,601   |   |         |   | 7,961   |         |   |   | (1,178 | ) |   |   | (794 | ) |   |   | 4,423 |   |   |   | 7,167 |   |
| Accelerated depreciation                               |   |         | — |   |         |   | — |         |   |   | (8,410 | ) |   |   | (14,142 | ) |   |   | (8,410 | ) |   |   | (14,142 | ) |
| Tax value of losses carried forward                    |   |         | 3,954   |   |         |   | 2,116   |         |   |   | — |   |   |   | — |   |   |   | 3,954 |   |   |   | 2,116 |   |
| Lease prepayments                                      |   |         | 292     |   |         |   | 284     |         |   |   | — |   |   |   | — |   |   |   | 292 |   |   |   | 284 |   |
| Embedded derivative component of the Convertible Bonds |   |         | — |   |         |   | — |         |   |   | (96 | ) |   |   | (64 | ) |   |   | (96 | ) |   |   | (64 | ) |
| Others                                                 |   |         | 99      |   |         |   | 29      |         |   |   | (5 | ) |   |   | (17 | ) |   |   | 94 |   |   |   | 12 |   |
| Deferred tax assets / (liabilities)                    |   |         | 13,975  |   |         |   | 15,516  |         |   |   | (9,707 | ) |   |   | (15,017 | ) |   |   | 4,268 |   |   |   | 499 |   |

----

|                                                  |   | Balance as ofJanuary 1,2008 |   |   | Recognized inconsolidatedstatements ofincome |   |    | Recognized inother comprehensiveincome |   |   | Balance as ofDecember 31,2008 |   |
|-------------------------------------------------------|--------|-----------------------------|--------|--------|----------------------------------------------|--------|---------|----------------------------------------|--------|--------|-------------------------------|--------|
|                                                  |   | RMB                         |   |   | RMB                                          |   |    | RMB                                    |   |   | RMB                           |   |
| Current                                               |   |                        |   |   |                                         |   |    |                                   |   |   |                          |   |
| Receivables and inventories                           |   |                        | 3,841  |   |                                         |   | 593     |                                   |   |   | —                       |   |   |   | 4,434 |   |
| Accruals                                              |   |                        | 2,613  |   |                                         |   | (2,352  | )                                      |   |   | —                       |   |   |   | 261 |   |
| Non-current                                           |   |                        |   |   |                                         |   |    |                                   |   |   |                          |   |   |   |   |   |
| Property, plant and equipment                         |   |                        | 1,265  |   |                                         |   | 1,340   |                                   |   |   | —                       |   |   |   | 2,605 |   |
| Accelerated depreciation                              |   |                        | (4,572 | )      |                                         |   | (2,544  | )                                      |   |   | —                       |   |   |   | (7,116 | ) |
| Tax value of losses carried forward                   |   |                        | 176    |   |                                         |   | 4,620   |                                   |   |   | —                       |   |   |   | 4,796 |   |
| Lease prepayments                                     |   |                        | 306    |   |                                         |   | (6      | )                                      |   |   | —                       |   |   |   | 300 |   |
| Available-for-sale securities                         |   |                        | (116   | )      |                                         |   | — |                                   |   |   | 64                            |   |   |   | (52 | ) |
| Embedded derivative component of theConvertible Bonds |   |                        | 803    |   |                                         |   | (954    | )                                      |   |   | —                       |   |   |   | (151 | ) |
| Others                                                |   |                        | 59     |   |                                         |   | (3      | )                                      |   |   | —                       |   |   |   | 56 |   |
| Net deferred tax assets                               |   |                        | 4,375  |   |                                         |   | 694     |                                   |   |   | 64                            |   |   |   | 5,133 |   |

|                                                  |   | Balance as ofJanuary 1,2009 |    |   | Recognized inconsolidatedstatements of income |   |    | Recognized inother comprehensiveincome |   |   | Acquisition |   |   | Balance as ofDecember31,2009 |    |
|-------------------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------------------------|--------|---------|----------------------------------------|--------|--------|-------------|--------|--------|------------------------------|---------|
|                                                  |   | RMB                         |    |   | RMB                                           |   |    | RMB                                    |   |   | RMB         |   |   | RMB                          |    |
| Current                                               |   |                        |    |   |                                          |   |    |                                   |   |   |        |   |   |                         |    |
| Receivables and inventories                           |   |                        | 4,434   |   |                                          |   | (1,227  | )                                      |   |   | —     |   |   |                         | — |   |   |   | 3,207 |   |
| Accruals                                              |   |                        | 261     |   |                                          |   | 554     |                                   |   |   | —     |   |   |                         | — |   |   |   | 815 |   |
| Cash flow hedges                                      |   |                        | — |   |                                          |   | — |                                   |   |   | (11         | )      |   |                         | — |   |   |   | (11 | ) |
| Non-current                                           |   |                        |    |   |                                          |   |    |                                   |   |   |        |   |   |                         |    |   |   |   |   |   |
| Property, plant and equipment                         |   |                        | 2,605   |   |                                          |   | 1,844   |                                   |   |   | —     |   |   |                         | (26     | ) |   |   | 4,423 |   |
| Accelerated depreciation                              |   |                        | (7,116  | )      |                                          |   | (1,294  | )                                      |   |   | —     |   |   |                         | — |   |   |   | (8,410 | ) |
| Tax value of losses carried forward                   |   |                        | 4,796   |   |                                          |   | (842    | )                                      |   |   | —     |   |   |                         | — |   |   |   | 3,954 |   |
| Lease prepayments                                     |   |                        | 300     |   |                                          |   | (8      | )                                      |   |   | —     |   |   |                         | — |   |   |   | 292 |   |
| Available-for-sale securities                         |   |                        | (52     | )      |                                          |   | — |                                   |   |   | 52          |   |   |                         | — |   |   |   | — |   |
| Embedded derivative component of theConvertible Bonds |   |                        | (151    | )      |                                          |   | 55      |                                   |   |   | —     |   |   |                         | — |   |   |   | (96 | ) |
| Others                                                |   |                        | 56      |   |                                          |   | 36      |                                   |   |   | —     |   |   |                         | 2       |   |   |   | 94 |   |
| Net deferred tax assets                               |   |                        | 5,133   |   |                                          |   | (882    | )                                      |   |   | 41          |   |   |                         | (24     | ) |   |   | 4,268 |   |

----

|                                                   |   | Balance as ofJanuary 1,2010 |   |   | Recognized inconsolidatedstatements of income |   |    | Recognized inothercomprehensiveincome |   |   | Balance as ofDecember 31,2010 |   |
|--------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------------------------|--------|---------|---------------------------------------|--------|--------|-------------------------------|--------|
|                                                   |   | RMB                         |   |   | RMB                                           |   |    | RMB                                   |   |   | RMB                           |   |
|                                                   |   |                        |   |   |                                          |   |    |                                  |   |   |                          |   |
| Current                                                |   |                        |   |   |                                          |   |    |                                  |   |   |                          |   |
| Receivables and inventories                            |   |                        | 3,207  |   |                                          |   | 300     |                                  |   |   | —                       |   |   |   | 3,507 |   |
| Accruals                                               |   |                        | 815    |   |                                          |   | 773     |                                  |   |   | —                       |   |   |   | 1,588 |   |
| Cash flow hedges                                       |   |                        | (11    | )      |                                          |   | — |                                  |   |   | 42                            |   |   |   | 31 |   |
| Non-current                                            |   |                        |   |   |                                          |   |    |                                  |   |   |                          |   |   |   |   |   |
| Property, plant and equipment                          |   |                        | 4,423  |   |                                          |   | 2,744   |                                  |   |   | —                       |   |   |   | 7,167 |   |
| Accelerated depreciation                               |   |                        | (8,410 | )      |                                          |   | (5,732  | )                                     |   |   | —                       |   |   |   | (14,142 | ) |
| Tax value of losses carried forward                    |   |                        | 3,954  |   |                                          |   | (1,838  | )                                     |   |   | —                       |   |   |   | 2,116 |   |
| Lease prepayments                                      |   |                        | 292    |   |                                          |   | (8      | )                                     |   |   | —                       |   |   |   | 284 |   |
| Embedded derivative component of the Convertible Bonds |   |                        | (96    | )      |                                          |   | 32      |                                  |   |   | —                       |   |   |   | (64 | ) |
| Others                                                 |   |                        | 94     |   |                                          |   | (82     | )                                     |   |   | —                       |   |   |   | 12 |   |
| Net deferred tax assets                                |   |                        | 4,268  |   |                                          |   | (3,811  | )                                     |   |   | 42                            |   |   |   | 499 |   |

| 24. | SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND ITS AFFILIATES |
|-----|----------------------------------------------------------------------------------------|

|                                                |   | December 31, |   |
|-----------------------------------------------------|--------|--------------|--------|
|                                                |   | 2009         |   |   | 2010 |   |
|                                                |   | RMB          |   |   | RMB |   |
| Third parties’ debts                          |   |         |   |   |   |   |
| Short-term bank loans                               |   |         | 21,587 |   |   |   | 11,380 |   |
|                                                |   |         |   |   |   |   |   |   |
| Current portion of long-term bank loans             |   |         | 6,686  |   |   |   | 4,554 |   |
| Current portion of long-term other loans            |   |         | 77     |   |   |   | 85 |   |
|                                                |   |         | 6,763  |   |   |   | 4,639 |   |
| Corporate bonds (Note (a))                          |   |         | 31,000 |   |   |   | 1,000 |   |
|                                                |   |         | 59,350 |   |   |   | 17,019 |   |
| Loans from Sinopec Group Company and its affiliates |   |         |   |   |   |   |   |   |
| Short-term loans                                    |   |         | 13,313 |   |   |   | 17,918 |   |
| Current portion of long-term loans                  |   |         | 2,553  |   |   |   | 891 |   |
|                                                |   |         | 15,866 |   |   |   | 18,809 |   |
|                                                |   |         | 75,216 |   |   |   | 35,828 |   |

----

|                       |   | Interest rate and final maturity                                                                                  |   | December 31, |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|--------------|
|                       |   |                                                                                                              |   | 2009         |   | 2010 |
|                       |   |                                                                                                              |   | RMB          |   | RMB |
| Third parties’ debts |   |                                                                                                              |   |         |   |   |
|                       |   |                                                                                                              |   |         |   |   |
| Long-term bank loans       |   |                                                                                                              |   |         |   |   |
|                       |   |                                                                                                              |   |         |   |   |
| Renminbi denominated       |   | Interest rates ranging from interest free to 5.64% per annum as of December 31, 2010 with maturities through 2025 |   | 18,869       |   | 23,161 |
|                       |   |                                                                                                              |   |         |   |   |
| Japanese Yen denominated   |   | Interest rates ranging from 2.6% to 2.94% per annum as of December 31, 2010 with maturities through 2024          |   | 1,660        |   | 1,488 |
|                       |   |                                                                                                              |   |         |   |   |
| US Dollar denominated      |   | Interest rates ranging from interest free to 7.8% per annum as of December 31, 2010 with maturities through 2031  |   | 3,171        |   | 972 |
|                       |   |                                                                                                              |   |         |   |   |
| Euro denominated           |   | Fixed interest rate at 6.56% per annum as of December 31, 2010 with maturity in 2011                              |   | 116          |   | 27 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   |                                                                                                              |   | 23,816       |   | 25,648 |
|                       |   |                                                                                                              |   |         |   |   |
| Long-term other loans      |   |                                                                                                              |   |         |   |   |
|                       |   |                                                                                                              |   |         |   |   |
| Renminbi denominated       |   | Interest rates ranging from interest free to 4.32% as of December 31, 2010 with maturities through 2013           |   | 73           |   | 250 |
|                       |   |                                                                                                              |   |         |   |   |
| US Dollar denominated      |   | Interest rates ranging from interest free to 4.89% per annum as of December 31, 2010 with maturities through 2015 |   | 29           |   | 26 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   |                                                                                                              |   | 102          |   | 276 |
|                       |   |                                                                                                              |   |         |   |   |
| Corporate bonds            |   |                                                                                                              |   |         |   |   |
|                       |   |                                                                                                              |   |         |   |   |
| Renminbi denominated       |   | Fixed interest rate at 4.61% per annum as of December 31, 2010 with maturity in February 2014 (Note (b))          |   | 3,500        |   | 3,500 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   | Fixed interest rate at 4.20% per annum as of December 31, 2010 with maturity in May 2017 (Note (b))               |   | 5,000        |   | 5,000 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   | Fixed interest rate at 5.40% per annum as of December 31, 2010 with maturity in November 2012 (Note (b))          |   | 8,500        |   | 8,500 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   | Fixed interest rate at 5.68% per annum as of December 31, 2010 with maturity in November 2017 (Note (b))          |   | 11,500       |   | 11,500 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   | Fixed interest rate at 2.25% per annum as of December 31, 2010 with maturity in March 2012 (Note (b))             |   | 10,000       |   | 10,000 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   | Fixed interest rate at 2.48% per annum as of December 31, 2010 with maturity in June 2012 (Note (b))              |   | 20,000       |   | 20,000 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   | Fixed interest rate at 3.75% per annum as of December 31, 2010 with maturity in May 2015 (Note (b))               |   | —      |   | 11,000 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   | Fixed interest rate at 4.05% per annum as of December 31, 2010 with maturity in May 2020 (Note (b))               |   | —      |   | 9,000 |
|                       |   |                                                                                                              |   |         |   |   |
|                       |   |                                                                                                              |   | 58,500       |   | 78,500 |

----

|                                                          |   | Interest rate and final maturity                                                                                  |   | December 31, |
|---------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|--------------|
|                                                          |   |                                                                                                              |   | 2009         |   | 2010 |
|                                                          |   |                                                                                                              |   | RMB          |   | RMB |
| Convertible bonds                                             |   |                                                                                                              |   |         |   |   |
|                                                          |   |                                                                                                              |   |         |   |   |
| Hong Kong Dollar denominated                                  |   | Zero coupon convertible bonds with maturity in April 2014 (Note (c))                                              |   | 10,371       |   | 10,667 |
|                                                          |   |                                                                                                              |   |         |   |   |
| Renminbi denominated                                          |   | Bonds with Warrants with fixed interest rate at 0.8% per annum and maturity in February 2014 (Note (d))           |   | 24,892       |   | 26,013 |
|                                                          |   |                                                                                                              |   | 35,263       |   | 36,680 |
|                                                          |   |                                                                                                              |   |         |   |   |
| Total third parties’ long-term debts                    |   | 117,681                                                                                                           |   | 141,104      |
|                                                          |   |                                                                                                              |   |         |   |   |
| Less: Current portion                                         |   |                                                                                                              |   | (6,763)      |   | (4,639) |
|                                                          |   |                                                                                                              |   | 110,918      |   | 136,465 |
|                                                          |   |                                                                                                              |   |         |   |   |
| Long-term loans from Sinopec Group Company and its affiliates |   |                                                                                                              |   |         |
|                                                          |   |                                                                                                              |   |         |   |   |
| Renminbi denominated                                          |   | Interest rates ranging from interest free to 6.54% per annum as of December 31, 2010 with maturities through 2020 |   | 37,330       |   | 37,760 |
|                                                          |   |                                                                                                              |   |         |   |   |
| US Dollor denominated                                         |   | Fixed interest rates at 0.92% per annum as of December 31, 2010 with maturity in 2011                             |   | 7,030        |   | 741 |
|                                                          |   |                                                                                                              |   |         |   |   |
| Less: Current portion                                         |   |                                                                                                              |   | (2,553)      |   | (891) |
|                                                          |   |                                                                                                              |   | 41,807       |   | 37,610 |
|                                                          |   |                                                                                                              |   | 152,725      |   | 174,075 |

| (a) | A subsidiary of the Company issued 330-day corporate bonds of face value RMB 1,000 to corporate investors in the PRC debenture market on April 3, 2009 at par value of RMB 100. The effective yield of the 330-day corporate bonds is 2.05% per annum. The subsidiary redeemed the corporate bonds in March 2010. The Company issued one-year corporate bonds of face value RMB 15,000 to corporate investors in the PRC debenture market on July 16, 2009 at par value of RMB 100. The effective yield of the one-year corporate bonds is 1.88% per annum. The Company redeemed the corporate bonds in July 2010.The Company issued one-year corporate bonds of face value RMB 15,000 to corporate investors in the PRC debenture market on November 12, 2009 at par value of RMB 100. The effective yield of the one-year corporate bonds is 2.30% per annum. The Company redeemed the corporate bonds in November 2010.A subsidiary of the Company issued one-year corporate bonds of face value RMB 1,000 to corporate investors in the PRC debenture market on June 22, 2010 at par value of RMB 100. The effective yield of the one-year corporate bonds is 3.27% per annum. The corporate bonds mature in June 2011. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | These corporate bonds are guaranteed by Sinopec Group Company. |
|-----|----------------------------------------------------------------|

----

| (c) | On April 24, 2007, the Company issued zero coupon convertible bonds due 2014 with an aggregate principal amount of HK$11,700 (the “Convertible Bonds”).  The holders can convert the Convertible Bonds into shares of the Company from June 4, 2007 onwards at a price of HK$10.76 per share, subject to adjustment for, amongst other things, subdivision or consolidation of shares, bonus issues, rights issues, capital distribution, change of control and other events, which have a dilutive effect on the issued share capital of the Company (the “Conversion component”).  Unless previously redeemed, converted or purchased and cancelled, the Convertible Bonds will be redeemed on the maturity date at 121.069% of the principal amount.  The Company has an early redemption option at any time after April 24, 2011 (subject to certain criteria) (the “Early Redemption Option”) and a cash settlement option when the holders exercise their conversion right (the “Cash Settlement Option”).  The holders also have an early redemption option to require the Company to redeem all or some of the Convertible Bonds as of April 24, 2011 at an early redemption amount of 111.544% of the principal amount. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                             |   | 2009             |   |   | 2010             |   |
|--------|----------------------------------|--------|------------------|--------|--------|------------------|--------|
|   |                             |   |             |   |   |             |   |
|   | Stock price of underlying shares |   | HKD 6.91         |   |   | HKD7.44          |   |
|   | Conversion price                 |   | HKD 10.76        |   |   | HKD 10.76        |   |
|   | Option adjusted spread           |   | 150 basis points |   |   | 125 basis points |   |
|   | Average risk free rate           |   |             | 0.87%  |   |             |   | 1.46% |   |
|   | Average expected life            |   | 2.8 years        |   |   | 1.8 years        |   |

| (d) | On February 26, 2008, the Company issued bonds with stock warrants due 2014 with an aggregate principal amount of RMB 30,000 in the PRC (the “Bonds with Warrants”). The Bonds with Warrants, which bear a fixed interest rate of 0.80% per annum payable annually, were issued at par value of RMB 100. The Bonds with Warrants are guaranteed by Sinopec Group Company. Every ten Bonds with Warrants are entitled to warrants to subscribe 50.5 A shares of the Company. The warrants were exercisable during the five trading days between February 25 and March 3, 2010. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                        |   | December 31, |    |
|-------------------------------------------------------------|--------|--------------|---------|
|                                                        |   | 2009         |    |   | 2010 |   |
|                                                        |   | RMB          |    |   | RMB |   |
| Amounts due to third parties                                |   |         | 92,949  |   |   |   | 120,224 |   |
| Amounts due to Sinopec Group Company and its affiliates     |   |         | 2,127   |   |   |   | 6,613 |   |
| Amounts due to associates and jointly controlled entities   |   |         | 1,686   |   |   |   | 5,691 |   |
|                                                        |   |         | 96,762  |   |   |   | 132,528 |   |
| Bills payable                                               |   |         | 23,111  |   |   |   | 3,818 |   |
| Trade accounts and bills payable measured at amortized cost |   |         | 119,873 |   |   |   | 136,346 |   |

|                                                    |   | December 31, |    |
|---------------------------------------------------------|--------|--------------|---------|
|                                                    |   | 2009         |    |   | 2010 |   |
|                                                    |   | RMB          |    |   | RMB |   |
| Accrued expenditures                                    |   |         | 35,465  |   |   |   | 44,113 |   |
| Advances from third parties                             |   |         | 2,796   |   |   |   | 3,336 |   |
| Amounts due to Sinopec Group Company and its affiliates |   |         | 11,979  |   |   |   | 9,309 |   |
| Others                                                  |   |         | 6,306   |   |   |   | 7,169 |   |
| Financial liabilities measured at amortized cost        |   |         | 56,546  |   |   |   | 63,927 |   |
|                                                    |   |         |    |   |   |   |   |   |
| Taxes other than income tax                             |   |         | 24,178  |   |   |   | 31,827 |   |
| Receipts in advance                                     |   |         | 36,316  |   |   |   | 56,261 |   |
| Derivative financial instruments – hedging        |   |         | 319     |   |   |   | 907 |   |
| Derivative financial instruments – non-hedging    |   |         | 439     |   |   |   | 556 |   |
|                                                    |   |         | 117,798 |   |   |   | 153,478 |   |

|                      |   | 2008   |   |   | 2009   |   |   | 2010   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                      |   | RMB    |   |   | RMB    |   |   | RMB    |   |
| Balance as of January 1   |   |   | 7,839  |   |   |   | 9,547  |   |   |   | 11,789 |   |
| Provision for the year    |   |   | 1,482  |   |   |   | 2,013  |   |   |   | 3,389 |   |
| Accretion expenses        |   |   | 448    |   |   |   | 447    |   |   |   | 574 |   |
| Utilized                  |   |   | (222   | )      |   |   | (218   | )      |   |   | (242 | ) |
| Balance as of December 31 |   |   | 9,547  |   |   |   | 11,789 |   |   |   | 15,510 |   |

----

|                                                                   |   | December 31, |   |
|------------------------------------------------------------------------|--------|--------------|--------|
|                                                                   |   | 2009         |   |   | 2010 |   |
|                                                                   |   | RMB          |   |   | RMB |   |
| Registered, issued and fully paid                                      |   |         |   |   |   |   |
| 69,922,039,774 listed A shares (2009: 69,921,951,000) of RMB 1.00 each |   |         | 69,922 |   |   |   | 69,922 |   |
| 16,780,488,000 listed H shares (2009: 16,780,488,000) of RMB 1.00 each |   |         | 16,780 |   |   |   | 16,780 |   |
|                                                                   |   |         | 86,702 |   |   |   | 86,702 |   |

----

|                                                                                        |   | 2009   |    |   | 2010   |   |
|---------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                        |   | RMB    |    |   | RMB    |   |
| Capital reserve (Note (a))                                                                  |   |   |    |   |   |   |
| Balance as of January 1                                                                     |   |   | (16,293 | )      |   |   | (17,911 | ) |
| Expiry of warrants ( Note 24 (d))                                                           |   |   | — |   |   |   | (6,879 | ) |
| Transfer from other reserves to capital reserve                                             |   |   | (1,551  | )      |   |   | (8,310 | ) |
| Distributions to Sinopec Group Company                                                      |   |   | (49     | )      |   |   | (29 | ) |
| Acquisitions of non-controlling interests of subsidiaries                                   |   |   | (18     | )      |   |   | (9 | ) |
| Balance as of December 31                                                                   |   |   | (17,911 | )      |   |   | (33,138 | ) |
|                                                                                        |   |   |    |   |   |   |   |   |
| Share premium (Note (b))                                                                    |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                     |   |   | 18,072  |   |   |   | 18,072 |   |
| Warrants exercised (Note 24 (d))                                                            |   |   | — |   |   |   | 2 |   |
| Expiry of warrants (Note 24 (d))                                                            |   |   | — |   |   |   | 6,879 |   |
| Balance as of December 31                                                                   |   |   | 18,072  |   |   |   | 24,953 |   |
|                                                                                        |   |   |    |   |   |   |   |   |
| Statutory surplus reserve (Note (c))                                                        |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                     |   |   | 43,078  |   |   |   | 48,031 |   |
| Appropriation                                                                               |   |   | 4,953   |   |   |   | 6,680 |   |
| Balance as of December 31                                                                   |   |   | 48,031  |   |   |   | 54,711 |   |
|                                                                                        |   |   |    |   |   |   |   |   |
| Discretionary surplus reserve (Note (d))                                                    |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                     |   |   | 47,000  |   |   |   | 67,000 |   |
| Appropriation                                                                               |   |   | 20,000  |   |   |   | 20,000 |   |
| Balance as of December 31                                                                   |   |   | 67,000  |   |   |   | 87,000 |   |
|                                                                                        |   |   |    |   |   |   |   |   |
| Other reserves                                                                              |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                     |   |   | 1,888   |   |   |   | 4,767 |   |
| Change in fair value of cash flow hedge, net of deferred tax                                |   |   | 54      |   |   |   | (221 | ) |
| Change in fair value of available-for-sale securities, net of deferred tax                  |   |   | (138    | )      |   |   | (9 | ) |
| Share of other comprehensive income of associates                                           |   |   | 806     |   |   |   | (533 | ) |
| Foreign currency translation differences                                                    |   |   | (2      | )      |   |   | (1,244 | ) |
| Transfer from retained earnings to other reserves                                           |   |   | 1,387   |   |   |   | 1,672 |   |
| Transfer from other reserves to capital reserve                                             |   |   | 1,551   |   |   |   | 8,310 |   |
| Consideration for the Acquisition of the Acquired Group and the Acquisition of SSI (Note 1) |   |   | (771    | )      |   |   | (13,177 | ) |
| Realization of deferred tax on lease prepayments                                            |   |   | (8      | )      |   |   | (8 | ) |
| Others (Note (h))                                                                           |   |   | — |   |   |   | 1,325 |   |
| Balance as of December 31                                                                   |   |   | 4,767   |   |   |   | 882 |   |
|                                                                                        |   |   |    |   |   |   |   |   |
| Retained earnings (Note (e))                                                                |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                     |   |   | 149,336 |   |   |   | 172,279 |   |
| Net income attributable to equity shareholders of the Company                               |   |   | 63,147  |   |   |   | 71,800 |   |
| Final dividend inspect of the previous year, approved and paid during the year (Note (f))   |   |   | (7,803  | )      |   |   | (9,537 | ) |
| Interim dividend (Note (g))                                                                 |   |   | (6,069  | )      |   |   | (6,936 | ) |
| Appropriation                                                                               |   |   | (24,953 | )      |   |   | (26,680 | ) |
| Transfer from retained earnings to other reserve                                            |   |   | (1,387  | )      |   |   | (1,672 | ) |
| Realization of deferred tax on lease prepayments                                            |   |   | 8       |   |   |   | 8 |   |
| Others (Note (h))                                                                           |   |   | — |   |   |   | (1,325 | ) |
| Balance as of December 31                                                                   |   |   | 172,279 |   |   |   | 197,937 |   |
|                                                                                        |   |   | 292,238 |   |   |   | 332,345 |   |

----

|   | Notes: |
|--------|--------|

| (a) | The capital reserve represents (i) the difference between the total amount of the par value of shares issued and the amount of the net assets transferred from Sinopec Group Company in connection with the Reorganization (ii) the difference between the consideration paid over the amount of the net assets of entities and related operations acquired from Sinopec Group Company and non-controlling interests. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The application of the share premium account is governed by Sections 168 and 169 of the PRC Company Law. |
|-----|----------------------------------------------------------------------------------------------------------|

| (c) | According to the Company’s Articles of Association, the Company is required to transfer 10% of its net income in accordance with the PRC accounting policies adopted by the Group to statutory surplus reserve. In the event that the reserve balance reaches 50% of the registered capital, no transfer is needed. The transfer to this reserve must be made before distribution of a dividend to shareholders.  Statutory surplus reserve can be used to make good previous years’ losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings or by increasing the par value of the shares currently held by them, provided that the balance after such issue is not less than 25% of the registered capital. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Pursuant to the requirement in Cai Kuai [2008] No. 11 “Interpretation of ASBE No. 2” issued by the MOF on August 7, 2008, for statutory financial statement purposes, the Group adopted certain PRC accounting policies that were applied retrospectively.  The statutory surplus reserve, amounting to RMB 1,189, has been adjusted accordingly.  The adjustment to statutory surplus reserve was reflected as a movement for the year ended December 31, 2008.  During the years ended December 31, 2008, 2009 and 2010, the Company transferred RMB 4,092, RMB 4,953 and RMB 6,680, respectively, being 10% of the net income determined in accordance with ASBE, to this reserve. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | For the year ended December 31, 2009, the directors authorized the transfer of RMB 20,000, which was approved by the shareholders at the Annual General Meeting on May 18, 2010, to discretionary surplus reserve. For the year ended December 31, 2010, the directors authorized the transfer of RMB 20,000, subject to the shareholders’ approval at the Annual General Meeting, to the discretionary surplus reserve. The usage of the discretionary surplus reserve is similar to that of statutory surplus reserve. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | According to the Company’s Articles of Association, the amount of retained earnings available for distribution to equity shareholders of the Company is the lower of the amount determined in accordance with the accounting policies complying with ASBE and the amount determined in accordance with the accounting policies complying with IFRS. As of December 31, 2009 and 2010, the amount of retained earnings available for distribution was RMB 91,772 and RMB 112,921, respectively, being the amount determined in accordance with the accounting policies complying with IFRS. Final dividend for the year ended December 31, 2010 of RMB 11,271 proposed after the balance sheet date has not been recognized as a liability at the balance sheet date. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Pursuant to the shareholders’ approval at the Annual General Meeting on May 22, 2009, a final dividend of RMB 0.09 per share totaling RMB 7,803 in respect of the year ended December 31, 2008 was declared and paid on June 30, 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Pursuant to the Company’s Articles of Association and a resolution passed at the Directors’ meeting on August 21, 2009, the directors authorized to declare an interim dividend for the year ended December 31, 2009 of RMB 0.07 per share totaling RMB 6,069, which was paid on October 15, 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Pursuant to the Company’s Articles of Association and a resolution passed at the Director’s meeting on August 20, 2010, the directors authorized to declare an interim dividend for the year ended December 31, 2010 of RMB 0.08 per share totaling RMB 6,936, which was paid on September 30, 2010. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (h) | During the year ended December 31, 2010, the Group transferred RMB 1,325 from retained earnings to other reserves, being the net balance of the reserve for the safety production fund according to relevant PRC regulations. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | December 31, |    |
|------------------------------|--------|--------------|---------|
|                         |   | 2009         |    |   | 2010 |   |
|                         |   | RMB          |    |   | RMB |   |
| Within one year              |   |         | 6,088   |   |   |   | 10,555 |   |
| Between one and two years    |   |         | 5,905   |   |   |   | 9,877 |   |
| Between two and three years  |   |         | 5,834   |   |   |   | 9,721 |   |
| Between three and four years |   |         | 5,722   |   |   |   | 9,634 |   |
| Between four and five years  |   |         | 5,604   |   |   |   | 9,522 |   |
| Thereafter                   |   |         | 145,338 |   |   |   | 224,292 |   |
|                         |   |         | 174,491 |   |   |   | 273,601 |   |

|                              |   | December 31, |    |
|-----------------------------------|--------|--------------|---------|
|                              |   | 2009         |    |   | 2010 |   |
|                              |   | RMB          |    |   | RMB |   |
| Authorized and contracted for     |   |         | 124,403 |   |   |   | 138,980 |   |
| Authorized but not contracted for |   |         | 62,144  |   |   |   | 37,450 |   |
|                              |   |         | 186,547 |   |   |   | 176,430 |   |

----

|                         |   | December 31, |   |
|------------------------------|--------|--------------|--------|
|                         |   | 2009         |   |   | 2010 |   |
|                         |   | RMB          |   |   | RMB |   |
| Within one year              |   |         | 136    |   |   |   | 119 |   |
| Between one and two years    |   |         | 118    |   |   |   | 181 |   |
| Between two and three years  |   |         | 21     |   |   |   | 22 |   |
| Between three and four years |   |         | 20     |   |   |   | 23 |   |
| Between four and five years  |   |         | 20     |   |   |   | 23 |   |
| Thereafter                   |   |         | 689    |   |   |   | 645 |   |
|                         |   |         | 1,004  |   |   |   | 1,013 |   |

|                        |   | December 31, |   |
|-----------------------------|--------|--------------|--------|
|                        |   | 2009         |   |   | 2010 |   |
|                        |   | RMB          |   |   | RMB |   |
| Jointly controlled entities |   |         | 14,815 |   |   |   | 7,548 |   |
| Associates                  |   |         | 181    |   |   |   | 152 |   |
|                        |   |         | 14,996 |   |   |   | 7,700 |   |

----

|                                                |   |   | Years ended December 31, |    |
|-----------------------------------------------------|--------|--------|--------------------------|---------|
|                                                | Note   |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
|                                                |   |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Sales of goods                                      | (i)    |   |                     | 186,381 |   |   |   | 162,671 |   |   |   | 230,883 |   |
| Purchases                                           | (ii)   |   |                     | 56,516  |   |   |   | 64,548 |   |   |   | 109,195 |   |
| Transportation and storage                          | (iii)  |   |                     | 1,206   |   |   |   | 1,251 |   |   |   | 1,407 |   |
| Exploration and development services                | (iv)   |   |                     | 33,034  |   |   |   | 31,343 |   |   |   | 33,301 |   |
| Production related services                         | (v)    |   |                     | 14,133  |   |   |   | 17,603 |   |   |   | 10,287 |   |
| Ancillary and social services                       | (vi)   |   |                     | 1,611   |   |   |   | 3,329 |   |   |   | 3,693 |   |
| Operating lease charges                             | (vii)  |   |                     | 4,897   |   |   |   | 4,866 |   |   |   | 7,450 |   |
| Agency commission income                            | (viii) |   |                     | 78      |   |   |   | 45 |   |   |   | 65 |   |
| Interest received                                   | (ix)   |   |                     | 19      |   |   |   | 38 |   |   |   | 93 |   |
| Interest paid                                       | (x)    |   |                     | 2,306   |   |   |   | 1,186 |   |   |   | 967 |   |
| Net deposits placed with related parties            | (ix)   |   |                     | 353     |   |   |   | 4,640 |   |   |   | 3,267 |   |
| Net loans obtained from/(repaid to) related parties | (xi)   |   |                     | 7,379   |   |   |   | (21,928 | ) |   |   | (1,254 | ) |

| (i) | Sales of goods represent the sale of crude oil, intermediate petrochemical products, petroleum products and ancillary materials. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Purchases represent the purchase of materials and utility supplies directly related to the Group’s operations such as the procurement of raw and ancillary materials and related services, supply of water, electricity and gas. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | Transportation and storage represent the cost for the use of railway, road and marine transportation services, pipelines, loading, unloading and storage facilities. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iv) | Exploration and development services comprise direct costs incurred in the exploration and development such as geophysical, drilling, well testing and well measurement services. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v) | Production related services represent ancillary services rendered in relation to the Group’s operations such as equipment repair and general maintenance, insurance premium, technical research, communications, fire fighting, security, product quality testing and analysis, information technology, design and engineering, construction which includes the construction of oilfield ground facilities, refineries and chemical plants, manufacture of replacement parts and machinery, installation, project management and environmental protection. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi) | Ancillary and social services represent expenditures for social welfare and support services such as educational facilities, media communication services, sanitation, accommodation, canteens, property maintenance and management services. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii) | Operating lease charges represent the rental paid to Sinopec Group Company for operating leases in respect of land, buildings and equipment. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (viii) | Agency commission income represents commission earned for acting as an agent in respect of sales of products and purchase of materials for certain entities owned by Sinopec Group Company. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix) | Interest received represents interest received from deposits placed with Sinopec Finance Company Limited and Sinopec Century Bright Capital Investment Limited, finance companies controlled by Sinopec Group Company. The applicable interest rate is determined in accordance with the prevailing saving deposit rate. The balance of deposits as of December 31, 2009 and 2010 were RMB 5,336 and RMB 8,603, respectively. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (x) | Interest paid represents interest charges on the loans and advances obtained from Sinopec Group Company and its affiliates. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (xi) | The Group obtained or repaid loans from or to Sinopec Group Company and its affiliates. |
|------|-----------------------------------------------------------------------------------------|

| (a) | The Company has entered into a non-exclusive Agreement for Mutual Provision of Products and Ancillary Services (“Mutual Provision Agreement”) with Sinopec Group Company effective from January 1, 2000 in which Sinopec Group Company has agreed to provide the Group with certain ancillary production services, construction services, information advisory services, supply services and other services and products. While each of Sinopec Group Company and the Company is permitted to terminate the Mutual Provision Agreement upon giving at least six months notice, Sinopec Group Company has agreed not to terminate the agreement if the Group is unable to obtain comparable services from a third party. The pricing policy for these services and products provided by Sinopec Group Company to the Group is as follows: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | the government-prescribed price; |
|--------|----------------------------------|

|   | where there is no government-prescribed price, the government-guidance price; |
|--------|-------------------------------------------------------------------------------|

|   | where there is neither a government-prescribed price nor a government-guidance price, the market price; or |
|--------|------------------------------------------------------------------------------------------------------------|

|   | where none of the above is applicable, the price to be agreed between the parties, which shall be based on a reasonable cost incurred in providing such services plus a profit margin not exceeding 6%. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The Company has entered into a non-exclusive Agreement for Provision of Cultural and Educational, Health Care and Community Services with Sinopec Group Company effective from January 1, 2000 in which Sinopec Group Company has agreed to provide the Group with certain cultural, educational, health care and community services on the same pricing terms and termination conditions as agreed to in the above Mutual Provision Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | The Company has entered into a series of lease agreements with Sinopec Group Company to lease certain land and buildings. The Company and Sinopec Group Company can renegotiate the rental amount every three years for land and the rental amount is approximately RMB 4,225 and RMB 6,727 per annum for the years ended December 31, 2009 and 2010, respectively. The Company and Sinopec Group Company can renegotiate the rental amount for buildings every year. However such amount cannot exceed the market price as determined by an independent third party. The Group has the option to terminate these leases upon six months notice to Sinopec Group Company. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The Company has entered into agreements with Sinopec Group Company effective from January 1, 2000 under which the Group has been granted the right to use certain trademarks, patents, technology and computer software developed by Sinopec Group Company. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | The Company has entered into a service stations franchise agreement with Sinopec Group Company effective from January 1, 2000 under which its service stations and retail stores would exclusively sell the refined products supplied by the Group. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                        |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                        |   | 2009         |   |   | 2010 |   |
|                                                                                                        |   | RMB          |   |   | RMB |   |
| Trade accounts receivable                                                                                   |   |         | 1,032  |   |   |   | 10,734 |   |
| Prepaid expenses and other current assets                                                                   |   |         | 810    |   |   |   | 3,390 |   |
| Total amounts due from Sinopec Group Company and its affiliates, associates and jointly controlled entities |   |         | 1,842  |   |   |   | 14,124 |   |
|                                                                                                        |   |         |   |   |   |   |   |   |
| Trade accounts payable                                                                                      |   |         | 3,813  |   |   |   | 12,304 |   |
| Accrued expenses and other payables                                                                         |   |         | 11,979 |   |   |   | 9,309 |   |
| Short-term loans and current portion of long-term loans from Sinopec Group Company and its affiliates       |   |         | 15,866 |   |   |   | 18,809 |   |
| Long-term loans excluding current portion from Sinopec Group Company and its affiliates                     |   |         | 41,807 |   |   |   | 37,610 |   |
| Total amounts due to Sinopec Group Company and its affiliates, associates and jointly controlled entities   |   |         | 73,465 |   |   |   | 78,032 |   |

----

|                            |   | Years ended December 31, |   |
|---------------------------------|--------|--------------------------|--------|
|                            |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                            |   | RMB’000            |   |   | RMB’000 |   |   | RMB’000 |   |
| Short-term employee benefits    |   |                     | 6,530  |   |   |   | 7,664 |   |   |   | 8,692 |   |
| Retirement scheme contributions |   |                     | 198    |   |   |   | 287 |   |   |   | 318 |   |
|                            |   |                     | 6,728  |   |   |   | 7,951 |   |   |   | 9,010 |   |

----

| (i) | Transactions with other state-controlled energy and chemical companies |
|-----|------------------------------------------------------------------------|

|                                              |   | December 31, |   |
|---------------------------------------------------|--------|--------------|--------|
|                                              |   | 2009         |   |   | 2010 |   |
|                                              |   | RMB          |   |   | RMB |   |
| Trade accounts receivable                         |   |         | 318    |   |   |   | 868 |   |
| Prepaid expenses and other current assets         |   |         | 17     |   |   |   | 20 |   |
| Total amounts due from CNPC Group and CNOOC Group |   |         | 335    |   |   |   | 888 |   |
|                                              |   |         |   |   |   |   |   |   |
| Trade accounts payable                            |   |         | 3,628  |   |   |   | 3,797 |   |
| Accrued expenses and other payables               |   |         | 361    |   |   |   | 290 |   |
| Total amounts due to CNPC Group and CNOOC Group   |   |         | 3,989  |   |   |   | 4,087 |   |

| (ii) | Transactions with state-controlled banks |
|------|------------------------------------------|

|   |   |
|--------|--------|

|             |   | Years ended December 31, |   |
|------------------|--------|--------------------------|--------|
|             |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|             |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Interest income  |   |                     | 413    |   |   |   | 238 |   |   |   | 153 |   |
| Interest expense |   |                     | 7,445  |   |   |   | 2,830 |   |   |   | 2,736 |   |

|                                                         |   | December 31, |   |
|--------------------------------------------------------------|--------|--------------|--------|
|                                                         |   | 2009         |   |   | 2010 |   |
|                                                         |   | RMB          |   |   | RMB |   |
| Cash and cash equivalents                                    |   |         | 3,046  |   |   |   | 8,617 |   |
| Time deposits with financial institutions                    |   |         | 1,236  |   |   |   | 509 |   |
| Total deposits at state-controlled banks in the PRC          |   |         | 4,282  |   |   |   | 9,126 |   |
|                                                         |   |         |   |   |   |   |   |   |
| Short-term loans and current portion of long-term loans      |   |         | 23,081 |   |   |   | 12,546 |   |
| Long-term loans excluding current portion of long-term loans |   |         | 16,983 |   |   |   | 21,094 |   |
| Total loans from state-controlled banks in the PRC           |   |         | 40,064 |   |   |   | 33,640 |   |

----

|   | (i) | Exploration and production, which explores and develops oil fields, produces crude oil and natural gas and sells such products to the refining segment of the Group and external customers. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Refining, which processes and purifies crude oil, that is sourced from the exploration and production segment of the Group and external suppliers, and manufactures and sells petroleum products to the chemicals and marketing and distribution segments of the Group and external customers. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Marketing and distribution, which owns and operates oil depots and service stations in the PRC, and distributes and sells refined petroleum products (mainly gasoline and diesel) in the PRC through wholesale and retail sales networks. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Chemicals, which manufactures and sells petrochemical products, derivative petrochemical products and other chemical products mainly to external customers. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Corporate and others, which largely comprise the trading activities of the import and export companies of the Group and research and development undertaken by other subsidiaries. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                      |   | Years ended December 31, |       |
|-----------------------------------------------------------|--------|--------------------------|------------|
|                                                      |   | 2008                     |       |   | 2009 |   |   | 2010 |   |
|                                                      |   | RMB                      |       |   | RMB |   |   | RMB |   |
| Sales of goods                                            |   |                     |       |   |   |   |   |   |   |
| Exploration and production                                |   |                     |       |   |   |   |   |   |   |
| External sales                                            |   |                     | 26,403     |   |   |   | 19,342 |   |   |   | 35,024 |   |
| Inter-segment sales                                       |   |                     | 168,262    |   |   |   | 97,981 |   |   |   | 133,691 |   |
|                                                      |   |                     | 194,665    |   |   |   | 117,323 |   |   |   | 168,715 |   |
| Refining                                                  |   |                     |       |   |   |   |   |   |   |   |   |   |
| External sales                                            |   |                     | 132,209    |   |   |   | 95,792 |   |   |   | 159,858 |   |
| Inter-segment sales                                       |   |                     | 692,520    |   |   |   | 603,870 |   |   |   | 805,704 |   |
|                                                      |   |                     | 824,729    |   |   |   | 699,662 |   |   |   | 965,562 |   |
| Marketing and distribution                                |   |                     |       |   |   |   |   |   |   |   |   |   |
| External sales                                            |   |                     | 802,817    |   |   |   | 778,417 |   |   |   | 1,032,900 |   |
| Inter-segment sales                                       |   |                     | 3,200      |   |   |   | 2,372 |   |   |   | 3,258 |   |
|                                                      |   |                     | 806,017    |   |   |   | 780,789 |   |   |   | 1,036,158 |   |
| Chemicals                                                 |   |                     |       |   |   |   |   |   |   |   |   |   |
| External sales                                            |   |                     | 219,723    |   |   |   | 192,735 |   |   |   | 285,596 |   |
| Inter-segment sales                                       |   |                     | 27,303     |   |   |   | 21,125 |   |   |   | 35,581 |   |
|                                                      |   |                     | 247,026    |   |   |   | 213,860 |   |   |   | 321,177 |   |
| Corporate and others                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| External sales                                            |   |                     | 232,051    |   |   |   | 229,629 |   |   |   | 363,380 |   |
| Inter-segment sales                                       |   |                     | 484,343    |   |   |   | 291,396 |   |   |   | 432,415 |   |
|                                                      |   |                     | 716,394    |   |   |   | 521,025 |   |   |   | 795,795 |   |
| Elimination of inter-segment sales                        |   |                     | (1,375,628 | ) |   |   | (1,016,744 | ) |   |   | (1,410,649 | ) |
| Sales of goods                                            |   |                     | 1,413,203  |   |   |   | 1,315,915 |   |   |   | 1,876,758 |   |
|                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Other operating revenues                                  |   |                     |       |   |   |   |   |   |   |   |   |   |
| Exploration and production                                |   |                     | 18,705     |   |   |   | 17,485 |   |   |   | 18,430 |   |
| Refining                                                  |   |                     | 4,957      |   |   |   | 3,909 |   |   |   | 6,015 |   |
| Marketing and distribution                                |   |                     | 906        |   |   |   | 2,302 |   |   |   | 4,540 |   |
| Chemicals                                                 |   |                     | 6,430      |   |   |   | 4,597 |   |   |   | 6,445 |   |
| Corporate and others                                      |   |                     | 90         |   |   |   | 844 |   |   |   | 994 |   |
| Other operating revenues                                  |   |                     | 31,088     |   |   |   | 29,137 |   |   |   | 36,424 |   |
|                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Other income                                              |   |                     |       |   |   |   |   |   |   |   |   |   |
| Refining                                                  |   |                     | 41,017     |   |   |   | — |   |   |   | — |   |
| Marketing and distribution                                |   |                     | 9,840      |   |   |   | — |   |   |   | — |   |
| Total other income                                        |   |                     | 50,857     |   |   |   | — |   |   |   | — |   |
|                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Sales of goods, other operating revenues and other income |   |                     | 1,495,148  |   |   |   | 1,345,052 |   |   |   | 1,913,182 |   |

----

|                                                             |   | Years ended December 31, |    |
|------------------------------------------------------------------|--------|--------------------------|---------|
|                                                             |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
| Result                                                           |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Operating income / (loss)                                        |   |                     |    |   |   |   |   |   |   |
| By segment                                                       |   |                     |    |   |   |   |   |   |   |
| - Exploration and production                                     |   |                     | 78,649  |   |   |   | 23,894 |   |   |   | 47,149 |   |
| - Refining                                                       |   |                     | (66,640 | ) |   |   | 27,508 |   |   |   | 15,855 |   |
| - Marketing and distribution                                     |   |                     | 38,519  |   |   |   | 30,300 |   |   |   | 30,760 |   |
| - Chemicals                                                      |   |                     | (12,950 | ) |   |   | 13,805 |   |   |   | 15,037 |   |
| - Corporate and others                                           |   |                     | (2,167  | ) |   |   | (2,205 | ) |   |   | (2,342 | ) |
| - Elimination                                                    |   |                     | 3,170   |   |   |   | (2,603 | ) |   |   | (1,455 | ) |
| Total segment operating income                                   |   |                     | 38,581  |   |   |   | 90,699 |   |   |   | 105,004 |   |
| Income from associates and jointly controlled entities           |   |                     |    |   |   |   |   |   |   |   |   |   |
| - Exploration and production                                     |   |                     | 216     |   |   |   | 136 |   |   |   | 158 |   |
| - Refining                                                       |   |                     | (822    | ) |   |   | 478 |   |   |   | 557 |   |
| - Marketing and distribution                                     |   |                     | 708     |   |   |   | 690 |   |   |   | 864 |   |
| - Chemicals                                                      |   |                     | (92     | ) |   |   | 1,084 |   |   |   | 3,211 |   |
| - Corporate and others                                           |   |                     | 570     |   |   |   | 609 |   |   |   | 600 |   |
| Aggregate income from associates and jointly controlled entities |   |                     | 580     |   |   |   | 2,997 |   |   |   | 5,390 |   |
| Investment income / (loss)                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
| - Exploration and production                                     |   |                     | (24     | ) |   |   | (1 | ) |   |   | 21 |   |
| - Refining                                                       |   |                     | 130     |   |   |   | (8 | ) |   |   | 26 |   |
| - Marketing and distribution                                     |   |                     | 54      |   |   |   | 47 |   |   |   | 169 |   |
| - Chemicals                                                      |   |                     | 130     |   |   |   | 311 |   |   |   | 20 |   |
| - Corporate and others                                           |   |                     | 100     |   |   |   | 25 |   |   |   | 37 |   |
| Aggregate investment income                                      |   |                     | 390     |   |   |   | 374 |   |   |   | 273 |   |
| Net finance costs                                                |   |                     | (6,109  | ) |   |   | (7,466 | ) |   |   | (6,974 | ) |
| Earnings before income tax                                       |   |                     | 33,442  |   |   |   | 86,604 |   |   |   | 103,693 |   |

----

|                                                                    |   | December 31, |    |
|-------------------------------------------------------------------------|--------|--------------|---------|
|                                                                    |   | 2008         |    |   | 2009 |   |   | 2010 |   |
|                                                                    |   | RMB          |    |   | RMB |   |   | RMB |   |
| Assets                                                                  |   |         |    |   |   |   |   |   |   |
| Segment assets                                                          |   |         |    |   |   |   |   |   |   |
| - Exploration and production                                            |   |         | 257,008 |   |   |   | 283,430 |   |   |   | 305,413 |   |
| - Refining                                                              |   |         | 184,531 |   |   |   | 213,027 |   |   |   | 230,925 |   |
| - Marketing and distribution                                            |   |         | 144,139 |   |   |   | 153,777 |   |   |   | 190,368 |   |
| - Chemicals                                                             |   |         | 121,964 |   |   |   | 128,322 |   |   |   | 125,586 |   |
| - Corporate and others                                                  |   |         | 31,120  |   |   |   | 60,433 |   |   |   | 60,897 |   |
| Total segment assets                                                    |   |         | 738,762 |   |   |   | 838,989 |   |   |   | 913,189 |   |
|                                                                    |   |         |    |   |   |   |   |   |   |   |   |   |
| Interest in associates and jointly controlled entities                  |   |         | 27,376  |   |   |   | 32,090 |   |   |   | 43,014 |   |
| Investments                                                             |   |         | 1,483   |   |   |   | 2,174 |   |   |   | 2,075 |   |
| Deferred tax assets                                                     |   |         | 13,768  |   |   |   | 13,975 |   |   |   | 15,516 |   |
| Cash and cash equivalents and time deposits with financial institutions |   |         | 7,792   |   |   |   | 10,018 |   |   |   | 18,140 |   |
| Income tax receivable                                                   |   |         | 9,784   |   |   |   | — |   |   |   | — |   |
| Other unallocated assets                                                |   |         | 1,381   |   |   |   | 1,017 |   |   |   | 3,220 |   |
| Total assets                                                            |   |         | 800,346 |   |   |   | 898,263 |   |   |   | 995,154 |   |
|                                                                    |   |         |    |   |   |   |   |   |   |   |   |   |
| Liabilities                                                             |   |         |    |   |   |   |   |   |   |   |   |   |
| Segment liabilities                                                     |   |         |    |   |   |   |   |   |   |   |   |   |
| - Exploration and production                                            |   |         | 63,404  |   |   |   | 57,907 |   |   |   | 65,067 |   |
| - Refining                                                              |   |         | 37,264  |   |   |   | 56,277 |   |   |   | 51,554 |   |
| - Marketing and distribution                                            |   |         | 37,727  |   |   |   | 50,540 |   |   |   | 76,981 |   |
| - Chemicals                                                             |   |         | 16,220  |   |   |   | 27,074 |   |   |   | 33,836 |   |
| - Corporate and others                                                  |   |         | 31,754  |   |   |   | 56,077 |   |   |   | 75,832 |   |
| Total segment liabilities                                               |   |         | 186,369 |   |   |   | 247,875 |   |   |   | 303,270 |   |
|                                                                    |   |         |    |   |   |   |   |   |   |   |   |   |
| Short-term debts                                                        |   |         | 77,339  |   |   |   | 59,350 |   |   |   | 17,019 |   |
| Income tax payable                                                      |   |         | 135     |   |   |   | 3,034 |   |   |   | 10,754 |   |
| Long-term debts                                                         |   |         | 92,988  |   |   |   | 110,918 |   |   |   | 136,465 |   |
| Loans from Sinopec Group Company and its affiliates                     |   |         | 79,601  |   |   |   | 57,673 |   |   |   | 56,419 |   |
| Deferred tax liabilities                                                |   |         | 8,635   |   |   |   | 9,707 |   |   |   | 15,017 |   |
| Other unallocated liabilities                                           |   |         | 3,291   |   |   |   | 4,890 |   |   |   | 5,842 |   |
| Total liabilities                                                       |   |         | 448,358 |   |   |   | 493,447 |   |   |   | 544,786 |   |

----

|                                     |   | Years ended December 31, |    |
|------------------------------------------|--------|--------------------------|---------|
|                                     |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
|                                     |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Capital expenditure                      |   |                     |    |   |   |   |   |   |   |
| Exploration and production               |   |                     | 60,059  |   |   |   | 54,272 |   |   |   | 52,680 |   |
| Refining                                 |   |                     | 12,793  |   |   |   | 15,468 |   |   |   | 20,015 |   |
| Marketing and distribution               |   |                     | 14,796  |   |   |   | 16,283 |   |   |   | 26,168 |   |
| Chemicals                                |   |                     | 20,622  |   |   |   | 25,207 |   |   |   | 12,894 |   |
| Corporate and others                     |   |                     | 2,393   |   |   |   | 1,505 |   |   |   | 1,894 |   |
|                                     |   |                     | 110,663 |   |   |   | 112,735 |   |   |   | 113,651 |   |
| Depreciation, depletion and amortization |   |                     |    |   |   |   |   |   |   |   |   |   |
| Exploration and production               |   |                     | 25,335  |   |   |   | 28,177 |   |   |   | 31,515 |   |
| Refining                                 |   |                     | 9,658   |   |   |   | 10,330 |   |   |   | 11,351 |   |
| Marketing and distribution               |   |                     | 5,270   |   |   |   | 5,999 |   |   |   | 6,489 |   |
| Chemicals                                |   |                     | 8,463   |   |   |   | 8,574 |   |   |   | 8,838 |   |
| Corporate and others                     |   |                     | 815     |   |   |   | 936 |   |   |   | 1,030 |   |
|                                     |   |                     | 49,541  |   |   |   | 54,016 |   |   |   | 59,223 |   |
| Impairment losses on long-lived assets   |   |                     |    |   |   |   |   |   |   |   |   |   |
| Exploration and production               |   |                     | 5,991   |   |   |   | 1,595 |   |   |   | 3,250 |   |
| Refining                                 |   |                     | 270     |   |   |   | 396 |   |   |   | 4,902 |   |
| Marketing and distribution               |   |                     | 709     |   |   |   | 1,479 |   |   |   | 1,183 |   |
| Chemicals                                |   |                     | 1,511   |   |   |   | 3,807 |   |   |   | 5,121 |   |
| Corporate and others                     |   |                     | 19      |   |   |   | 8 |   |   |   | 21 |   |
|                                     |   |                     | 8,500   |   |   |   | 7,285 |   |   |   | 14,477 |   |

----

| Name of company                                                    |   | Particularsof issuedcapital |   | Percentageof equity |   | Principal activities                                                                                              |
|--------------------------------------------------------------------|--------|-----------------------------|--------|---------------------|--------|-------------------------------------------------------------------------------------------------------------------|
|                                                               |   |                        |   |                |   |                                                                                                              |
| China Petrochemical International Company Limited                  |   | RMB 1,400                   |   | 100.00              |   | Trading of petrochemical products and equipments                                                                  |
| Sinopec Sales Company Limited                                      |   | RMB 1,700                   |   | 100.00              |   | Marketing and distribution of refined petroleum products                                                          |
| Sinopec Yangzi Petrochemical Company Limited                       |   | RMB 16,337                  |   | 100.00              |   | Manufacturing of intermediate petrochemical products and petroleum products                                       |
| Fujian Petrochemical Company Limited (Note)                        |   | RMB 4,769                   |   | 50.00               |   | Manufacturing of plastics, intermediate petrochemical products and petroleum products                             |
| Sinopec Shanghai Petrochemical Company Limited                     |   | RMB 7,200                   |   | 55.56               |   | Manufacturing of synthetic fibres, resin and plastics, intermediate petrochemical products and petroleum products |
| Sinopec Kantons Holdings Limited                                   |   | HKD 104                     |   | 72.34          |   | Trading of crude oil and petroleum products                                                                       |
| Sinopec Yizheng Chemical Fibre Company Limited (Note)              |   | RMB 4,000                   |   | 42.00               |   | Production and sale of polyester chips and polyester fibres                                                       |
| Sinopec Zhongyuan Petrochemical Company Limited                    |   | RMB 2,400                   |   | 93.51               |   | Manufacturing of chemical products                                                                                |
| Sinopec Shell (Jiangsu) Petroleum Marketing Company Limited        |   | RMB 830                     |   | 60.00               |   | Marketing and distribution of refined petroleum products                                                          |
| BP Sinopec (Zhejiang) Petroleum Company Limited                    |   | RMB 800                     |   | 60.00               |   | Marketing and distribution of refined petroleum products                                                          |
| Sinopec Qingdao Refining and Chemical Company Limited              |   | RMB 5,000                   |   | 85.00               |   | Manufacturing of intermediate petrochemical products and petroleum products                                       |
| China International United Petroleum and Chemical Company Limited  |   | RMB 3,040                   |   | 100.00              |   | Trading of crude oil and petrochemical products                                                                   |
| Sinopec Hainan Refining and Chemical Company Limited               |   | RMB 3,986                   |   | 75.00               |   | Manufacturing of intermediate petrochemical products and petroleum products                                       |
| Sinopec (Hong Kong) Limited                                        |   | HKD 5,477                   |   | 100.00              |   | Trading of crude oil and petrochemical products                                                                   |
| Sinopec Senmei (Fujian) Petroleum Ltd.                             |   | RMB 1,840                   |   | 55.00               |   | Marketing and distribution of refined petroleum products                                                          |
| Sinopec Qingdao Petrochemical Company Limited                      |   | RMB 1,595                   |   | 100.00              |   | Manufacturing of intermediate petrochemical products and petroleum products                                       |
| Sinopec International Petroleum Exploration and Production Limited |   | RMB 8,000                   |   | 100.00              |   | Investment in exploration, production and sales of petroleum and natural gas                                      |
| Sinopec Fuel Oil Sales Company Limited                             |   | RMB 2,200                   |   | 100.00              |   | Marketing and distribution of refined petroleum products                                                          |

|   | Note: | The Company consolidated the financial statements of the entity because it controlled the board of this entity and had the power to govern its financial and operating policies. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | credit risk; |
|--------------------|--------------|

| ·   | liquidity risk; |
|--------------------|-----------------|

| ·   | market risk; and |
|--------------------|------------------|

| ·   | equity price risk. |
|--------------------|--------------------|

----

|                                                |   | December 31, 2009     |    |
|-----------------------------------------------------|--------|-----------------------|---------|
|                                                |   |  Carrying amount |    |   | Total contractual undiscounted cash flow |   |   | Within 1 year or on demand |   |   | More than 1 year but less than 2 years |   |   | More than 2 years but less than 5 years |   |   | More than 5 years |   |
|                                                |   | RMB                   |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
|                                                |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term debts                                    |   |                  | 59,350  |   |   |   | 60,298 |   |   |   | 60,298 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Long-term debts                                     |   |                  | 110,918 |   |   |   | 132,588 |   |   |   | 3,131 |   |   |   | 9,118 |   |   |   | 99,942 |   |   |   | 20,397 |   |
| Loans from Sinopec Group Company and its affiliates |   |                  | 57,673  |   |   |   | 58,510 |   |   |   | 16,398 |   |   |   | 5,112 |   |   |   | 1,440 |   |   |   | 35,560 |   |
| Trade accounts payable                              |   |                  | 96,762  |   |   |   | 96,762 |   |   |   | 96,762 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Bills payable                                       |   |                  | 23,111  |   |   |   | 23,114 |   |   |   | 23,114 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Accrued expenses and other payables                 |   |                  | 57,304  |   |   |   | 57,304 |   |   |   | 57,304 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                |   |                  | 405,118 |   |   |   | 428,576 |   |   |   | 257,007 |   |   |   | 14,230 |   |   |   | 101,382 |   |   |   | 55,957 |   |

|                                                |   | December 31, 2010 |    |
|-----------------------------------------------------|--------|-------------------|---------|
|                                                |   | Carrying amount   |    |   | Total contractual undiscounted cash flow |   |   | Within 1 year or on demand |   |   | More than 1 year but less than 2 years |   |   | More than 2 years but less than 5 years |   |   | More than 5 years |   |
|                                                |   | RMB               |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
|                                                |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term debts                                    |   |              | 17,019  |   |   |   | 17,202 |   |   |   | 17,202 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Long-term debts                                     |   |              | 136,465 |   |   |   | 157,394 |   |   |   | 4,240 |   |   |   | 46,617 |   |   |   | 76,737 |   |   |   | 29,800 |   |
| Loans from Sinopec Group Company and its affiliates |   |              | 56,419  |   |   |   | 57,098 |   |   |   | 19,187 |   |   |   | 312 |   |   |   | 2,039 |   |   |   | 35,560 |   |
| Trade accounts payable                              |   |              | 132,528 |   |   |   | 132,528 |   |   |   | 132,528 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Bills payable                                       |   |              | 3,818   |   |   |   | 3,818 |   |   |   | 3,818 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Accrued expenses and other payables                 |   |              | 65,390  |   |   |   | 65,390 |   |   |   | 65,390 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                |   |              | 411,639 |   |   |   | 433,430 |   |   |   | 242,365 |   |   |   | 46,929 |   |   |   | 78,776 |   |   |   | 65,360 |   |

----

|                                             | December 31, |   |
|--------------------------------------------------|--------------|--------|
| Gross exposure arising from loans and borrowings | 2009         |   | 2010 |   |
| US Dollars                                       | USD          | 1,341  |   | USD | 501 |   |
| Japanese Yen                                     | JPY          | 22,500 |   | JPY | 18,313 |   |
| Hong Kong Dollars                                | HKD          | 11,779 |   | HKD | 12,114 |   |

|              |   | December 31, |   |
|-------------------|--------|--------------|--------|
|              |   | 2009         |   |   | 2010 |   |
| US Dollars        |   |         | 343    |   |   |   | 124 |   |
| Japanese Yen      |   |         | 62     |   |   |   | 56 |   |
| Hong Kong Dollars |   |         | 389    |   |   |   | 400 |   |

----

| ·   | Level 1 (highest level): fair values measured using quoted prices (unadjusted) in active markets for identical financial instruments. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2: fair values measured using quoted prices in active markets for similar financial instruments, or using valuation techniques in which all significant inputs are directly or indirectly based on observable market data. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 (lowest level): fair values measured using valuation techniques in which any significant input is not based on observable market data. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                             |   | December 31, 2009 |    |
|--------------------------------------------------|--------|-------------------|---------|
|                                             |   | Level 1           |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                             |   | RMB               |    |   | RMB |   |   | RMB |   |   | RMB |   |
| Assets                                           |   |              |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale financial assets:             |   |              |    |   |   |   |   |   |   |   |   |   |
| - Listed                                         |   |              | 61      |   |   |   | — |   |   |   | — |   |   |   | 61 |   |
| - Unlisted                                       |   |              | — |   |   |   | 1,400 |   |   |   | — |   |   |   | 1,400 |   |
| Derivative financial instruments:                |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Derivative financial assets                    |   |              | 17      |   |   |   | 307 |   |   |   | — |   |   |   | 324 |   |
|                                             |   |              | 78      |   |   |   | 1,707 |   |   |   | — |   |   |   | 1,785 |   |
|                                             |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                      |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments:                |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Derivative components of the Convertible Bonds |   |              | — |   |   |   | 218 |   |   |   | — |   |   |   | 218 |   |
| - Other derivative financial liabilities         |   |              | 4       |   |   |   | 754 |   |   |   | — |   |   |   | 758 |   |
|                                             |   |              | 4       |   |   |   | 972 |   |   |   | — |   |   |   | 976 |   |

|                                             |   | December 31, 2010 |    |
|--------------------------------------------------|--------|-------------------|---------|
|                                             |   | Level 1           |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                             |   | RMB               |    |   | RMB |   |   | RMB |   |   | RMB |   |
| Assets                                           |   |              |    |   |   |   |   |   |   |   |   |   |
| Financial assets held for trading                |   |              | 700     |   |   |   | 1,750 |   |   |   | — |   |   |   | 2,450 |   |
| Available-for-sale financial assets:             |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Listed                                         |   |              | 52      |   |   |   | — |   |   |   | — |   |   |   | 52 |   |
| Derivative financial instruments:                |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Derivative financial assets                    |   |              | 113     |   |   |   | 223 |   |   |   | — |   |   |   | 336 |   |
|                                             |   |              | 865     |   |   |   | 1,973 |   |   |   | — |   |   |   | 2,838 |   |
|                                             |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                      |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments:                |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Derivative components of the Convertible Bonds |   |              | — |   |   |   | 340 |   |   |   | — |   |   |   | 340 |   |
| - Other derivative financial liabilities         |   |              | 164     |   |   |   | 1,299 |   |   |   | — |   |   |   | 1,463 |   |
|                                             |   |              | 164     |   |   |   | 1,639 |   |   |   | — |   |   |   | 1,803 |   |

|            |   | December 31, |    |
|-----------------|--------|--------------|---------|
|            |   | 2009         |    |   | 2010 |   |
|            |   | RMB          |    |   | RMB |   |
| Carrying amount |   |         | 115,139 |   |   |   | 141,004 |   |
| Fair value      |   |         | 114,471 |   |   |   | 139,999 |   |

----

----

|   | 37. | POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE FOR THE ANNUAL ACCOUNTING PERIOD ENDED DECEMBER 31, 2010 |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                    |   | Years ended December 31, |     |
|-------------------------------------------------------------------------|--------|--------------------------|----------|
|                                                                    |   | 2008                     |     |   | 2009 |   |   | 2010 |   |
|                                                                    |   | RMB                      |     |   | RMB |   |   | RMB |   |
| Property cost, wells and related equipment and facilities               |   |                     | 317,307  |   |   |   | 360,518 |   |   |   | 421,600 |   |
| Supporting equipment and facilities                                     |   |                     | 46,720   |   |   |   | 68,784 |   |   |   | 79,001 |   |
| Uncompleted wells, equipment and facilities                             |   |                     | 56,542   |   |   |   | 46,886 |   |   |   | 30,374 |   |
| Total capitalized costs                                                 |   |                     | 420,569  |   |   |   | 476,188 |   |   |   | 530,975 |   |
| Accumulated depreciation, depletion, amortization and impairment losses |   |                     | (177,262 | ) |   |   | (206,416 | ) |   |   | (239,414 | ) |
| Net capitalized costs                                                   |   |                     | 243,307  |   |   |   | 269,772 |   |   |   | 291,561 |   |

|                 |   | Years ended December 31, |   |
|----------------------|--------|--------------------------|--------|
|                 |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
|                 |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Exploration          |   |                     | 12,947 |   |   |   | 14,572 |   |   |   | 15,746 |   |
| Development          |   |                     | 55,422 |   |   |   | 50,245 |   |   |   | 47,889 |   |
| Total costs incurred |   |                     | 68,369 |   |   |   | 64,817 |   |   |   | 63,635 |   |

|                                                        |   | Years ended December 31, |    |
|-------------------------------------------------------------|--------|--------------------------|---------|
|                                                        |   | 2008                     |    |   | 2009 |   |   | 2010 |   |
|                                                        |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Revenues                                                    |   |                     |    |   |   |   |   |   |   |
| Sales                                                       |   |                     | 26,192  |   |   |   | 19,114 |   |   |   | 34,133 |   |
| Transfers                                                   |   |                     | 167,920 |   |   |   | 97,801 |   |   |   | 133,449 |   |
|                                                        |   |                     | 194,112 |   |   |   | 116,915 |   |   |   | 167,582 |   |
| Production costs excluding taxes                            |   |                     | (32,128 | ) |   |   | (33,124 | ) |   |   | (38,423 | ) |
| Exploration expenses                                        |   |                     | (8,310  | ) |   |   | (10,545 | ) |   |   | (10,955 | ) |
| Depreciation, depletion, amortization and impairment losses |   |                     | (29,935 | ) |   |   | (29,772 | ) |   |   | (33,404 | ) |
| Taxes other than income tax                                 |   |                     | (35,980 | ) |   |   | (9,188 | ) |   |   | (22,830 | ) |
| Income before income tax                                    |   |                     | 87,759  |   |   |   | 34,286 |   |   |   | 61,970 |   |
| Income tax expense                                          |   |                     | (25,029 | ) |   |   | (10,139 | ) |   |   | (17,454 | ) |
| Results of operation from producing activities              |   |                     | 62,730  |   |   |   | 24,147 |   |   |   | 44,516 |   |

----

|                                                                  |   | Years ended December 31, |   |
|-----------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                  |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
| Proved developed and undeveloped reserves (oil) (million barrels)     |   |                     |   |   |   |   |   |   |   |
| Beginning of year                                                     |   |                     | 3,169  |   |   |   | 2,961 |   |   |   | 2,919 |   |
| Revisions of previous estimates                                       |   |                     | (94    | ) |   |   | 86 |   |   |   | 85 |   |
| Improved recovery                                                     |   |                     | 98     |   |   |   | 131 |   |   |   | 144 |   |
| Extensions and discoveries                                            |   |                     | 110    |   |   |   | 69 |   |   |   | 69 |   |
| Production                                                            |   |                     | (322   | ) |   |   | (328 | ) |   |   | (328 | ) |
| End of year                                                           |   |                     | 2,961  |   |   |   | 2,919 |   |   |   | 2,889 |   |
|                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Non-controlling interest in proved developed and undeveloped reserves |   |                     |   |   |   |   |   |   |   |   |   |   |
| End of year                                                           |   |                     | 54     |   |   |   | 45 |   |   |   | 43 |   |

----

|                                                                 |   | Years ended December 31, |   |
|----------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                 |   | 2008                     |   |   | 2009 |   |   | 2010 |   |
| Proved developed reserves                                            |   |                     |   |   |   |   |   |   |   |
| Beginning of year                                                    |   |                     | 2,764  |   |   |   | 2,539 |   |   |   | 2,589 |   |
| End of year                                                          |   |                     | 2,539  |   |   |   | 2,589 |   |   |   | 2,554 |   |
| Proved undeveloped reserves                                          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                    |   |                     | 405    |   |   |   | 422 |   |   |   | 330 |   |
| End of year                                                          |   |                     | 422    |   |   |   | 330 |   |   |   | 335 |   |
| Proved developed and undeveloped reserves (gas) (billion cubic feet) |   |                     |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                    |   |                     | 6,331  |   |   |   | 6,959 |   |   |   | 6,739 |   |
| Revisions of previous estimates                                      |   |                     | 203    |   |   |   | 52 |   |   |   | 23 |   |
| Improved recovery                                                    |   |                     | -      |   |   |   | - |   |   |   | 81 |   |
| Extensions and discoveries                                           |   |                     | 718    |   |   |   | 27 |   |   |   | 45 |   |
| Production                                                           |   |                     | (293   | ) |   |   | (299 | ) |   |   | (441 | ) |
| End of year                                                          |   |                     | 6,959  |   |   |   | 6,739 |   |   |   | 6,447 |   |
| Proved developed reserves                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                    |   |                     | 1,518  |   |   |   | 1,571 |   |   |   | 1,727 |   |
| End of year                                                          |   |                     | 1,571  |   |   |   | 1,727 |   |   |   | 4,471 |   |
| Proved undeveloped reserves                                          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                    |   |                     | 4,813  |   |   |   | 5,388 |   |   |   | 5,012 |   |
| End of year                                                          |   |                     | 5,388  |   |   |   | 5,012 |   |   |   | 1,976 |   |

----

|                                                        |   | Years ended December 31, |      |
|-------------------------------------------------------------|--------|--------------------------|-----------|
|                                                        |   | 2008                     |      |   | 2009 |   |   | 2010 |   |
|                                                        |   | RMB                      |      |   | RMB |   |   | RMB |   |
|                                                        |   |                     |      |   |   |   |   |   |   |
| Future cash flows                                           |   |                     | 1,003,848 |   |   |   | 1,259,335 |   |   |   | 1,621,070 |   |
| Future production costs                                     |   |                     | (545,853  | ) |   |   | (556,320 | ) |   |   | (749,752 | ) |
| Future development costs                                    |   |                     | (47,402   | ) |   |   | (38,262 | ) |   |   | (46,902 | ) |
| Future income tax expenses                                  |   |                     | (46,525   | ) |   |   | (108,864 | ) |   |   | (140,804 | ) |
| Undiscounted future net cash flows                          |   |                     | 364,068   |   |   |   | 555,889 |   |   |   | 683,612 |   |
| 10% annual discount for estimated timing of cash flows      |   |                     | (114,951  | ) |   |   | (233,298 | ) |   |   | (279,686 | ) |
| Standardized measure of discounted future net cash flows    |   |                     | 249,117   |   |   |   | 322,591 |   |   |   | 403,926 |   |
|                                                        |   |                     |      |   |   |   |   |   |   |   |   |   |
| Non-controlling interest in discounted future net cash flow |   |                     |      |   |   |   |   |   |   |   |   |   |
| End of year                                                 |   |                     | 3,365     |   |   |   | 8,282 |   |   |   | 7,032 |   |

|                                                                 |   | Years ended December 31, |     |
|----------------------------------------------------------------------|--------|--------------------------|----------|
|                                                                 |   | 2008                     |     |   | 2009 |   |   | 2010 |   |
|                                                                 |   | RMB                      |     |   | RMB |   |   | RMB |   |
|                                                                 |   |                     |     |   |   |   |   |   |   |
| Sales and transfers of oil and gas produced, net of production costs |   |                     | (127,175 | ) |   |   | (59,578 | ) |   |   | (86,735 | ) |
| Net changes in prices and production costs                           |   |                     | (275,497 | ) |   |   | 84,041 |   |   |   | 88,765 |   |
| Net change due to extensions, discoveries and improved recoveries    |   |                     | 32,011   |   |   |   | 35,009 |   |   |   | 45,695 |   |
| Revisions of previous quantity estimates                             |   |                     | (8,298   | ) |   |   | 11,405 |   |   |   | 14,899 |   |
| Previously estimated development costs incurred during the year      |   |                     | 29,863   |   |   |   | 14,547 |   |   |   | 10,638 |   |
| Accretion of discount                                                |   |                     | 38,472   |   |   |   | 21,366 |   |   |   | 26,120 |   |
| Net change in income taxes                                           |   |                     | 86,012   |   |   |   | (33,528 | ) |   |   | (18,326 | ) |
| Others                                                               |   |                     | 352      |   |   |   | 212 |   |   |   | 279 |   |
| Net change for the year                                              |   |                     | (224,260 | ) |   |   | 73,474 |   |   |   | 81,335 |   |

----

|   | China Petroleum & Chemical Corporation |
|--------|--------------------------------------------|
|   |                                       |   |
|   | By:                                        |  /s/ Chen Ge |
|   | Name:                                      | Chen Ge |
|   | Title:                                     | Secretary to the Board of Directors |