|   | £ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | S | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|---------------------------------------------------------------------------------------|

|   | £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | £ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|---------------------------------------------------------------------------------------------|

----

| Title of Each Class                                                                       |   | Name of Each ExchangeOn Which Registered |
|-------------------------------------------------------------------------------------------|--------|------------------------------------------|
| American Depositary Shares, each representing100 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.*           |

|   | * | Not for trading, but only in connection with the registration of American Depository Shares. |
|--------|---|----------------------------------------------------------------------------------------------|

| H Shares, par value RMB 1.00 per share | 25,513,438,600 |
|----------------------------------------|----------------|
| A Shares, par value RMB 1.00 per share | 92,766,957,040 |

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

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

----

----

| ITEM 1.   |   |   |   | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS                        |   | 9  |
|-----------|--------|--------|--------|------------------------------------------------------------------------------|--------|----|
| ITEM 2.   |   |   |   | OFFER STATISTICS AND EXPECTED TIMETABLE                                      |   | 9  |
| ITEM 3.   |   |   |   | KEY INFORMATION                                                              |   | 9  |
|      |   | A.     |   | SELECTED FINANCIAL DATA                                                      |   | 9  |
|      |   | B.     |   | CAPITALIZATION AND INDEBTEDNESS                                              |   | 11 |
|      |   | C.     |   | REASONS FOR THE OFFER AND USE OF PROCEEDS                                    |   | 11 |
|      |   | D.     |   | RISK FACTORS                                                                 |   | 11 |
| ITEM 4.   |   |   |   | INFORMATION ON THE COMPANY                                                   |   | 19 |
|      |   | A.     |   | HISTORY AND DEVELOPMENT OF THE COMPANY                                       |   | 19 |
|      |   | B.     |   | BUSINESS OVERVIEW                                                            |   | 21 |
|      |   | C.     |   | ORGANIZATIONAL STRUCTURE                                                     |   | 37 |
|      |   | D.     |   | PROPERTY, PLANT AND EQUIPMENT                                                |   | 37 |
| ITEM 4A.  |   |   |   | UNRESOLVED STAFF COMMENTS                                                    |   | 38 |
| ITEM 5.   |   |   |   | OPERATING AND FINANCIAL REVIEW AND PROSPECTS                                 |   | 38 |
|      |   | A.     |   | GENERAL                                                                      |   | 38 |
|      |   | B.     |   | CONSOLIDATED RESULTS OF OPERATIONS                                           |   | 41 |
|      |   | C.     |   | DISCUSSIONS ON RESULTS OF SEGMENT OPERATIONS                                 |   | 47 |
|      |   | D.     |   | LIQUIDITY AND CAPITAL RESOURCES                                              |   | 54 |
| ITEM 6.   |   |   |   | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                                   |   | 57 |
|      |   | A.     |   | DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT                                 |   | 57 |
|      |   | B.     |   | COMPENSATION                                                                 |   | 64 |
|      |   | C.     |   | BOARD PRACTICE                                                               |   | 65 |
|      |   | D.     |   | EMPLOYEES                                                                    |   | 66 |
|      |   | E.     |   | SHARE OWNERSHIP                                                              |   | 66 |
| ITEM 7.   |   |   |   | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                            |   | 67 |
|      |   | A.     |   | MAJOR SHAREHOLDERS                                                           |   | 67 |
|      |   | B.     |   | RELATED PARTY TRANSACTIONS                                                   |   | 67 |
|      |   | C.     |   | INTERESTS OF EXPERTS AND COUNSEL                                             |   | 68 |
| ITEM 8.   |   |   |   | FINANCIAL INFORMATION                                                        |   | 68 |
|      |   | A.     |   | CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION                      |   | 68 |
|      |   | B.     |   | SIGNIFICANT CHANGES                                                          |   | 69 |
| ITEM 9.   |   |   |   | THE OFFER AND LISTING                                                        |   | 69 |
|      |   | A.     |   | OFFER AND LISTING DETAILS                                                    |   | 69 |
| ITEM 10.  |   |   |   | ADDITIONAL INFORMATION                                                       |   | 70 |
|      |   | A.     |   | SHARE CAPITAL                                                                |   | 70 |
|      |   | B.     |   | MEMORANDUM AND ARTICLES OF ASSOCIATION                                       |   | 70 |
|      |   | C.     |   | MATERIAL CONTRACTS                                                           |   | 78 |
|      |   | D.     |   | EXCHANGE CONTROLS                                                            |   | 78 |
|      |   | E.     |   | TAXATION                                                                     |   | 78 |
|      |   | F.     |   | DIVIDENDS AND PAYING AGENTS                                                  |   | 83 |
|      |   | G.     |   | STATEMENT BY EXPERTS                                                         |   | 83 |
|      |   | H.     |   | DOCUMENTS ON DISPLAY                                                         |   | 83 |
|      |   | I.     |   | SUBSIDIARY INFORMATION                                                       |   | 83 |
| ITEM 11.  |   |   |   | QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK                   |   | 83 |
| ITEM 12.  |   |   |   | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       |   | 87 |
| ITEM 13.  |   |   |   | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              |   | 88 |
| ITEM 14.  |   |   |   | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |   | 88 |
|      |   | A.     |   | MATERIAL MODIFICATIONS TO THE RIGHTS TO SECURITIES HOLDERS                   |   | 88 |
|      |   | B.     |   | USE OF PROCEEDS                                                              |   | 88 |
| ITEM 15.  |   |   |   | CONTROLS AND PROCEDURES                                                      |   | 88 |
| ITEM 16.  |   |   |   | RESERVED                                                                     |   | 89 |
| ITEM 16A. |   |   |   | AUDIT COMMITTEE FINANCIAL EXPERT                                             |   | 89 |
| ITEM 16B. |   |   |   | CODE OF ETHICS                                                               |   | 89 |
| ITEM 16C. |   |   |   | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                       |   | 89 |
| ITEM 16D. |   |   |   | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                   |   | 90 |
| ITEM 16E. |   |   |   | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS       |   | 90 |

----

| ITEM 16F. |   |   |   | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT                                                                         |   | 90 |
|-----------|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|----|
| ITEM 16G. |   |   |   | COMPARISON OF NEW YORK STOCK EXCHANGE CORPORATE GOVERNANCE RULES AND CHINA CORPORATE GOVERNANCE RULES FOR LISTED COMPANIES |   | 90 |
| ITEM 16H. |   |   |   | MINE SAFETY DISCLOSURE                                                                                                     |   | 94 |
| ITEM 17.  |   |   |   | FINANCIAL STATEMENTS                                                                                                       |   | 94 |
| ITEM 18.  |   |   |   | FINANCIAL STATEMENTS                                                                                                       |   | 94 |
| ITEM 19.  |   |   |   | EXHIBITS                                                                                                                   |   | 94 |

----

|   | · | “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. |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | “BOE” are to barrels-of-oil equivalent. |
|--------|--------|-----------------------------------------------------|

|   | · | “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)   |   |
|                               |   |                |   |   |   |   |   |   |   |   |   |   |
| 2010                               |   |                | 6.6000 |   |   |   | 6.7603 |   |   |   | 6.8330 |   |   |   | 6.6000 |   |
| 2011                               |   |                | 6.2939 |   |   |   | 6.4475 |   |   |   | 6.6364 |   |   |   | 6.2939 |   |
| 2012                               |   |                | 6.2301 |   |   |   | 6.2990 |   |   |   | 6.3879 |   |   |   | 6.2221 |   |
| 2013                               |   |                | 6.0537 |   |   |   | 6.1412 |   |   |   | 6.2438 |   |   |   | 6.0537 |   |
| 2014                               |   |                | 6.2046 |   |   |   | 6.1620 |   |   |   | 6.2591 |   |   |   | 6.0402 |   |
| October 2014                       |   |                | 6.1124 |   |   |   | 6.1251 |   |   |   | 6.1385 |   |   |   | 6.1107 |   |
| November 2014                      |   |                | 6.1429 |   |   |   | 6.1249 |   |   |   | 6.1429 |   |   |   | 6.1117 |   |
| December 2014                      |   |                | 6.2046 |   |   |   | 6.1886 |   |   |   | 6.2256 |   |   |   | 6.1490 |   |
| January 2015                       |   |                | 6.2495 |   |   |   | 6.2181 |   |   |   | 6.2535 |   |   |   | 6.1870 |   |
| February 2015                      |   |                | 6.2695 |   |   |   | 6.2518 |   |   |   | 6.2695 |   |   |   | 6.2399 |   |
| March 2015                         |   |                | 6.1990 |   |   |   | 6.2386 |   |   |   | 6.2741 |   |   |   | 6.1955 |   |
| April 2015 (through April 3, 2015) |   |                | 6.1930 |   |   |   | 6.1958 |   |   |   | 6.1976 |   |   |   | 6.1930 |   |

| (1) | 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,                                                |            |
|---------------------------------------------------------------|--------|------------------------------------------------------------------------|-----------------|
|                                                          |   | 2010                                                                   |            |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |
|                                                          |   | (RMB in millions, except per share, per ADS data and number of shares) |            |
| Consolidated Statement of Income Data(1):                     |   |                                                                   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenues                                            |   |                                                                   | 1,913,182       |   |   |   | 2,505,683 |   |   |   | 2,786,045 |   |   |   | 2,880,311 |   |   |   | 2,825,914 |   |
| Operating expenses                                            |   |                                                                   | (1,808,208      | ) |   |   | (2,400,153 | ) |   |   | (2,687,383 | ) |   |   | (2,783,526 | ) |   |   | (2,752,427 | ) |
| Operating income                                              |   |                                                                   | 104,974         |   |   |   | 105,530 |   |   |   | 98,662 |   |   |   | 96,785 |   |   |   | 73,487 |   |
| Earnings before income tax                                    |   |                                                                   | 103,663         |   |   |   | 104,565 |   |   |   | 90,642 |   |   |   | 95,052 |   |   |   | 65,504 |   |
| Tax expense                                                   |   |                                                                   | (25,681         | ) |   |   | (26,120 | ) |   |   | (23,846 | ) |   |   | (24,763 | ) |   |   | (17,571 | ) |
| Net income attributable to equity shareholders of the Company |   |                                                                   | 71,782          |   |   |   | 73,225 |   |   |   | 63,879 |   |   |   | 66,132 |   |   |   | 46,466 |   |
| Basic earnings per share(2)                              |   |                                                                   | 0.637           |   |   |   | 0.650 |   |   |   | 0.566 |   |   |   | 0.570 |   |   |   | 0.398 |   |
| Basic earnings per ADS(2)                                |   |                                                                   | 63.69           |   |   |   | 65.00 |   |   |   | 56.62 |   |   |   | 56.96 |   |   |   | 39.77 |   |
| Diluted earnings per share(2)                                 |   |                                                                   | 0.631           |   |   |   | 0.625 |   |   |   | 0.545 |   |   |   | 0.534 |   |   |   | 0.397 |   |
| Diluted earnings per ADS(2)                                   |   |                                                                   | 63.08           |   |   |   | 62.46 |   |   |   | 54.46 |   |   |   | 53.41 |   |   |   | 39.74 |   |
| Cash dividends declared per share                             |   |                                                                   | 0.146           |   |   |   | 0.177 |   |   |   | 0.231 |   |   |   | 0.244 |   |   |   | 0.240 |   |
| Segment Results                                               |   |                                                                   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration and production                                    |   |                                                                   | 47,149          |   |   |   | 71,631 |   |   |   | 70,054 |   |   |   | 54,793 |   |   |   | 47,057 |   |
| Refining                                                      |   |                                                                   | 15,851          |   |   |   | (35,780 | ) |   |   | (11,444 | ) |   |   | 8,599 |   |   |   | (1,954 | ) |
| Marketing and distribution                                    |   |                                                                   | 30,760          |   |   |   | 44,696 |   |   |   | 42,652 |   |   |   | 35,143 |   |   |   | 29,449 |   |
| Chemicals                                                     |   |                                                                   | 15,011          |   |   |   | 26,732 |   |   |   | 1,178 |   |   |   | 868 |   |   |   | (2,181 | ) |
| Corporate and others                                          |   |                                                                   | (2,342          | ) |   |   | (2,640 | ) |   |   | (2,443 | ) |   |   | (3,412 | ) |   |   | (1,063 | ) |
| Elimination of inter-segment sales                            |   |                                                                   | (1,455          | ) |   |   | 891 |   |   |   | (1,335 | ) |   |   | 794 |   |   |   | 2,179 |   |
| Operating income                                              |   |                                                                   | 104,974         |   |   |   | 105,530 |   |   |   | 98,662 |   |   |   | 96,785 |   |   |   | 73,487 |   |
| Shares                                                        |   |                                                                   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average number of A and H shares               |   |                                                                   | 112,713,267,514 |   |   |   | 112,713,299,453 |   |   |   | 112,853,724,741 |   |   |   | 116,102,910,373 |   |   |   | 116,822,487,451 |   |
| Diluted weighted average number of A and H shares             |   |                                                                   | 114,126,836,287 |   |   |   | 116,733,935,215 |   |   |   | 118,412,133,133 |   |   |   | 121,858,818,276 |   |   |   | 117,242,396,710 |   |

|                                                                                                                    |   | As of December 31, |     |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                                    |   | 2010               |     |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |
|                                                                                                                    |   | (RMB in millions)  |     |
| Consolidated Balance Sheet Data(1):                                                                                     |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                               |   |               | 17,008   |   |   |   | 24,647 |   |   |   | 10,456 |   |   |   | 15,046 |   |   |   | 9,355 |   |
| Total current assets                                                                                                    |   |               | 260,229  |   |   |   | 342,755 |   |   |   | 365,015 |   |   |   | 373,010 |   |   |   | 360,144 |   |
| Total non-current assets                                                                                                |   |               | 727,642  |   |   |   | 794,423 |   |   |   | 892,929 |   |   |   | 1,009,906 |   |   |   | 1,091,224 |   |
| Total assets                                                                                                            |   |               | 987,871  |   |   |   | 1,137,178 |   |   |   | 1,257,944 |   |   |   | 1,382,916 |   |   |   | 1,451,368 |   |
| Total current liabilities                                                                                               |   |               | (336,406 | ) |   |   | (444,240 | ) |   |   | (513,373 | ) |   |   | (571,822 | ) |   |   | (604,257 | ) |
| Short-term debts and loans from Sinopec Group Company and its affiliates (including current portion of long-term debts) |   |               | (35,828  | ) |   |   | (80,373 | ) |   |   | (115,982 | ) |   |   | (163,870 | ) |   |   | (178,148 | ) |
| Long-term debts and loans from Sinopec Group Company and its affiliates (excluding current portion of long-term debts)  |   |               | (174,075 | ) |   |   | (154,457 | ) |   |   | (162,116 | ) |   |   | (145,590 | ) |   |   | (150,932 | ) |
| Total equity attributable to equity shareholders of the Company                                                         |   |               | (419,604 | ) |   |   | (472,328 | ) |   |   | (510,914 | ) |   |   | (568,803 | ) |   |   | (593,041 | ) |
| Total equity                                                                                                            |   |               | (451,036 | ) |   |   | (507,344 | ) |   |   | (548,036 | ) |   |   | (621,626 | ) |   |   | (645,577 | ) |

----

|                                                   |   | Year Ended December 31 |     |
|--------------------------------------------------------|--------|------------------------|----------|
|                                                   |   | 2010                   |     |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |
|                                                   |   | (RMB in millions)      |     |
| Statement of Cash Flow and Other Financial Data(1):    |   |                   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash generated from operating activities           |   |                   | 170,333  |   |   |   | 150,622 |   |   |   | 142,380 |   |   |   | 151,893 |   |   |   | 148,347 |   |
| Net cash (used in)/generated from financing activities |   |                   | (56,294  | ) |   |   | (2,516 | ) |   |   | 5,628 |   |   |   | 31,519 |   |   |   | (21, 421 | ) |
| Net cash used in investing activities                  |   |                   | (105,788 | ) |   |   | (140,449 | ) |   |   | (162,197 | ) |   |   | (178,740 | ) |   |   | (132,633 | ) |
| Capital expenditure                                    |   |                   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration and production                             |   |                   | 53,801   |   |   |   | 62,050 |   |   |   | 79,071 |   |   |   | 105,311 |   |   |   | 80,196 |   |
| Refining                                               |   |                   | 20,015   |   |   |   | 25,767 |   |   |   | 32,161 |   |   |   | 26,064 |   |   |   | 27,957 |   |
| Marketing and distribution                             |   |                   | 30,829   |   |   |   | 30,387 |   |   |   | 31,723 |   |   |   | 29,486 |   |   |   | 26,989 |   |
| Chemicals                                              |   |                   | 18,422   |   |   |   | 16,980 |   |   |   | 23,616 |   |   |   | 19,189 |   |   |   | 15,850 |   |
| Corporate and others                                   |   |                   | 1,894    |   |   |   | 2,488 |   |   |   | 2,397 |   |   |   | 5,076 |   |   |   | 3,648 |   |
| Total                                                  |   |                   | 124,961  |   |   |   | 137,672 |   |   |   | 168,968 |   |   |   | 185,126 |   |   |   | 154,640 |   |

| (1) | The acquisition of 55% equity interest of Sonangol Sinopec International Limited (SSI) in 2010 from Sinopec Group Company were considered as “combination of entities under common control” and accounted in a manner similar to 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. The weighted average number of shares for the years prior to January 1, 2013 has been retrospectively adjusted as a result of the issuance of bonus shares and capitalization in 2013, and accordingly the basic earnings and diluted earnings per share have been adjusted retrospectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. |
|--------|--------|----------------------------------|

----

|   | · | unexpected drilling conditions; |
|--------|--------|---------------------------------|

|   | · | pressure or irregularities in geological formations; |
|--------|--------|------------------------------------------------------|

|   | · | equipment failures or accidents; |
|--------|--------|----------------------------------|

|   | · | oil well blowouts; |
|--------|--------|--------------------|

|   | · | adverse weather conditions or natural disasters; |
|--------|--------|--------------------------------------------------|

|   | · | compliance with existing or enhanced environmental regulations; |
|--------|--------|-----------------------------------------------------------------|

|   | · | governmental requirements and standards; or |
|--------|--------|---------------------------------------------|

|   | · | delays in the availability of drilling rigs and delivery and maintenance of equipment. |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | ability to generate sufficient cash flows from operations to finance its expenditures, investments and other requirements, which are affected by changes in crude oil and natural gas prices and other factors; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | availability and terms of external financing; |
|--------|--------|-----------------------------------------------|

|   | · | mix of exploration and development activities conducted on an independent basis and those conducted jointly with other partners; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | extent to which its ability to influence or adjust plans for exploration and development related expenditures is limited under joint operating agreements for those projects in which it has partners; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | government approvals required for exploration and development-related expenditures and investments in jurisdictions in which it conducts business; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | economic, political and other conditions in jurisdictions in which it conducts business. |
|--------|--------|------------------------------------------------------------------------------------------|

----

----

----

----

|   | · | the imposition of fees for the discharge of waste substances; |
|--------|--------|---------------------------------------------------------------|

|   | · | the levy of fines and payments for damages for serious environmental offenses; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | 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; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | litigations and liabilities arising from pollutions and damages to the environment and public interests. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | 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, 2014  |   |
|------------------------------|--------|--------------------------|--------|
| Crude Oil Proved Reserves    |   | (in millions of barrels) |   |
|                         |   |                     |   |
| Developed                    |   |                     |   |
| Subsidiaries                 |   |                     |   |
| China                        |   |                     |   |
| Shengli                      |   |                     | 1,917  |   |
| Others                       |   |                     | 548    |   |
| Overseas(1)        |   |                     | 64     |   |
| Subtotal                     |   |                     | 2,529  |   |
| Equity-accounted investments |   |                     |   |   |
| Overseas(2)                  |   |                     | 253    |   |
| Subtotal                     |   |                     | 253    |   |
| Total Developed              |   |                     | 2,782  |   |
| Undeveloped                  |   |                     |   |   |
| Subsidiaries                 |   |                     |   |   |
| China                        |   |                     |   |   |
| Shengli                      |   |                     | 105    |   |
| Others                       |   |                     | 130    |   |
| Overseas(1)                  |   |                     | 8      |   |
| Subtotal                     |   |                     | 243    |   |
| Equity-accounted investments |   |                     |   |   |
| Overseas(2)                  |   |                     | 23     |   |
| Subtotal                     |   |                     | 23     |   |
| Total Undeveloped            |   |                     | 266    |   |
| Total Proved Reserves        |   |                     | 3,048  |   |

----

|                         |   | As of December 31, 2014     |   |
|------------------------------|--------|-----------------------------|--------|
| Natural Gas Proved Reserves  |   | (in billions of cubic feet) |   |
|                         |   |                        |   |
| Developed                    |   |                        |   |
| Subsidiaries                 |   |                        |   |
| China                        |   |                        |   |
| Puguang                      |   |                        | 2,663  |   |
| Others(1)                    |   |                        | 3,324  |   |
| Overseas                     |   |                        | -      |   |
| Subtotal                     |   |                        | 5,987  |   |
| Equity-accounted investments |   |                        |   |   |
| Overseas(2)                  |   |                        | 24     |   |
| Subtotal                     |   |                        | 24     |   |
| Total Developed              |   |                        | 6,011  |   |
| Undeveloped                  |   |                        |   |   |
| Subsidiaries                 |   |                        |   |   |
| China                        |   |                        |   |   |
| Puguang                      |   |                        | -      |   |
| Others                       |   |                        | 728    |   |
| Overseas(1)                  |   |                        | -      |   |
| Subtotal                     |   |                        | 728    |   |
| Equity-accounted investments |   |                        |   |   |
| Overseas(2)                  |   |                        | 2      |   |
| Subtotal                     |   |                        | 2      |   |
| Total Undeveloped            |   |                        | 730    |   |
| Total Proved Reserves        |   |                        | 6,741  |   |

| (1) | In 2010, we acquired from Sinopec Group Company part of its interests in Angola Block 18. The proved reserves amount of our overseas subsidiary is the net reserves amount of SSI after deducting the government’s amount-sharing. We hold a 55% equity interests in SSI. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | In 2013, a joint venture, owned by Sinopec Group Company and us on an equal basis, acquired from Sinopec Group Company (i) 50% interest in CIR, (ii) 49% interest in Taihu, and (iii) 50% interest in Mansarovar. The proved reserves amount reflects the joint venture’s shares in CIR, Taihu and Mansarovar. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Year Ended December 31,   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2012                      |   |   | 2013 |   |   | 2014 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (in thousands of barrels) |   |
| Average Daily Crude Oil Production                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      |   |   |   |   |   |   |   |
| China                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                      |   |   |   |   |   |   |   |
| Shengli                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      | 536    |   |   |   | 540 |   |   |   | 542 |   |
| Others                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                      | 304    |   |   |   | 312 |   |   |   | 310 |   |
| Overseas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                      |   |   |   |   |   |   |   |   |   |   |
| Subsidiary(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      | 59     |   |   |   | 59 |   |   |   | 42 |   |
| Equity-accounted investments(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      | -      |   |   |   | 10 |   |   |   | 95 |   |
| Total Crude Oil Production                                                                              |   |                      | 899    |   |   |   | 921 |   |   |   | 989 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Year Ended December 31,     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2012                        |   |   | 2013 |   |   | 2014 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (in millions of cubic feet) |   |
| Average Daily Natural Gas Production                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                        |   |   |   |   |   |   |   |
| China                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        |   |   |   |   |   |   |   |
| Puguang                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        | 732    |   |   |   | 784 |   |   |   | 761 |   |
| Others                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                        | 905    |   |   |   | 1024 |   |   |   | 1,190 |   |
| Overseas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                        | -      |   |   |   | - |   |   |   | 11 |   |
| Total Natural Gas Production                                                                              |   |                        | 1,637  |   |   |   | 1,808 |   |   |   | 1,962 |   |

| (1) | The average daily production of our overseas subsidiary is the net production of SSI after deducting the government’s sharing of production. We hold 55% equity interest of SSI. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The average daily production of our equity-accounted investments reflects our shares of the production in CIR, Taihu and Mansarovar, starting from our acquisition in 2013 of (i) 50% interest in CIR, (ii) 49% interest in Taihu, and (iii) 50% interest in Mansarovar, through a joint venture owned by Sinopec Group Company and us. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   | Weighted Average |     |   | China  |   |     | Overseas(1) |   |
|------------------------------------------|--------|------------------|----------|--------|--------|--------|----------|-------------|--------|
|                                     |   | (RMB)            |     |
| For the year ended December 31, 2014     |   |             |     |   |   |   |     |        |   |
| Average petroleum lifting cost per BOE   |   |             | 113.1    |   |   |   | 113.4    |        |   |   | 105.07 |   |
| Average realized sales price             |   |             |     |   |   |   |     |        |   |   |   |   |
| Per barrel of crude oil                  |   |             | 554.71   |   |   |   | 552.73   |        |   |   | 597.24 |   |
| Per thousand cubic meters of natural gas |   |             | 1,598.99 |   |   |   | 1,598.99 |        |   |   | - |   |
| For the year ended December 31, 2013     |   |             |     |   |   |   |     |        |   |   |   |   |
| Average petroleum lifting cost per BOE   |   |             | 112.56   |   |   |   | 113.63   |        |   |   | 91.27 |   |
| Average realized sales price             |   |             |     |   |   |   |     |        |   |   |   |   |
| Per barrel of crude oil                  |   |             | 590.86   |   |   |   | 584.35   |        |   |   | 671.17 |   |
| Per thousand cubic meters of natural gas |   |             | 1,359.23 |   |   |   | 1,359.23 |        |   |   | - |   |
| For the year ended December 31, 2012     |   |             |     |   |   |   |     |        |   |   |   |   |
| Average petroleum lifting cost per BOE   |   |             | 110.64   |   |   |   | 111.47   |        |   |   | 92.55 |   |
| Average realized sales price             |   |             |     |   |   |   |     |        |   |   |   |   |
| Per barrel of crude oil                  |   |             | 632.51   |   |   |   | 625.79   |        |   |   | 704.17 |   |
| Per thousand cubic meters of natural gas |   |             | 1,291.65 |   |   |   | 1,291.65 |        |   |   | - |   |

| (1) | The exchange rates we used for overseas data in this table was the average exchange rates for each year ended December 31, 2012, 2013 and 2014, which were RMB 6.3125 to US$1.00, RMB 6.1928 to US$ 1.00, and RMB 6.1428 to US$1.00, respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Total  |   |   | China   |   |   | Overseas |   |
|--------------------------------------|--------|--------|--------|--------|---------|--------|--------|----------|--------|
|                                 |   |   |   |   | Shengli |   |   | Others   |   |   | Subsidiary |   |   | Equity-accounted investments |   |
| For the year ended December 31, 2014 |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |
| Exploratory                          |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |
| Productive                           |   |   | 337    |   |    |   | 141    |     |   |   | 193 |   |   |   | - |   |   |   | 3 |   |
| Dry                                  |   |   | 187    |   |    |   | 64     |     |   |   | 123 |   |   |   | - |   |   |   | - |   |
| Development                          |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 3,964  |   |    |   | 2,027  |     |   |   | 1,614 |   |   |   | 6 |   |   |   | 317 |   |
| Dry                                  |   |   | 56     |   |    |   | 30     |     |   |   | 26 |   |   |   | - |   |   |   | - |   |
| For the year ended December 31, 2013 |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploratory                          |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 350    |   |    |   | 112    |     |   |   | 238 |   |   |   | - |   |   |   | - |   |
| Dry                                  |   |   | 352    |   |    |   | 96     |     |   |   | 256 |   |   |   | - |   |   |   | - |   |
| Development                          |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 4,513  |   |    |   | 2,490  |     |   |   | 2,016 |   |   |   | 5 |   |   |   | 2 |   |
| Dry                                  |   |   | 83     |   |    |   | 39     |     |   |   | 44 |   |   |   | - |   |   |   | - |   |
| For the year ended December 31, 2012 |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploratory                          |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 329    |   |    |   | 101    |     |   |   | 228 |   |   |   | - |   |   |   | - |   |
| Dry                                  |   |   | 682    |   |    |   | 89     |     |   |   | 593 |   |   |   | - |   |   |   | - |   |
| Development                          |   |   |   |   |    |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Productive                           |   |   | 3,583  |   |    |   | 2,047  |     |   |   | 1,532 |   |   |   | 4 |   |   |   | - |   |
| Dry                                  |   |   | 35     |   |    |   | 6      |     |   |   | 29 |   |   |   | - |   |   |   | - |   |

----

|                         |   | As of December 31, |   |
|------------------------------|--------|--------------------|--------|
|                         |   | 2013               |   |   | 2014 |   |
|                         |   | Gross              |   |   | Net |   |   | Gross |   |   | Net |   |
| China                        |   |               |   |   |   |   |   |   |   |   |   |   |
| Shengli                      |   |               | 93     |   |   |   | 93 |   |   |   | 63 |   |   |   | 63 |   |
| Others                       |   |               | 174    |   |   |   | 174 |   |   |   | 247 |   |   |   | 246 |   |
| Overseas                     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subsidiary                   |   |               | 1      |   |   |   | - |   |   |   | 1 |   |   |   | - |   |
| Equity-accounted investments |   |               | 1      |   |   |   | - |   |   |   | 2 |   |   |   | 1 |   |
| Total Wells Drilling         |   |               | 269    |   |   |   | 267 |   |   |   | 313 |   |   |   | 310 |   |

|                                                                                                             |   | As of December 31, |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                             |   | 2013               |   |   | 2014 |   |
| Productive Wells for Crude Oil                                                                                   |   | Gross              |   |   | Net |   |   | Gross |   |   | Net |   |
| China                                                                                                            |   |               |   |   |   |   |   |   |   |   |   |   |
| Shengli                                                                                                          |   |               | 28,844 |   |   |   | 28,844 |   |   |   | 30,534 |   |   |   | 30,534 |   |
| Others                                                                                                           |   |               | 17,281 |   |   |   | 17,281 |   |   |   | 18,058 |   |   |   | 18,058 |   |
| Overseas                                                                                                         |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subsidiary                                                                                                       |   |               | 23     |   |   |   | 7 |   |   |   | 25 |   |   |   | 8 |   |
| Equity-accounted investments               |   |               | 1,604  |   |   |   | 468 |   |   |   | 7,102 |   |   |   | 2,778 |   |
| Total                                                                                                            |   |               | 47,752 |   |   |   | 46,600 |   |   |   | 55,719 |   |   |   | 51,378 |   |

|                             |   | As of December 31, |   |
|----------------------------------|--------|--------------------|--------|
|                             |   | 2013               |   |   | 2014 |   |
| Productive Wells for Natural Gas |   | Gross              |   |   | Net |   |   | Gross |   |   | Net |   |
| China                            |   |               |   |   |   |   |   |   |   |   |   |   |
| Puguang                          |   |               | 53     |   |   |   | 53 |   |   |   | 54 |   |   |   | 54 |   |
| Others                           |   |               | 4,179  |   |   |   | 4,159 |   |   |   | 4,496 |   |   |   | 4,471 |   |
| Overseas                         |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                            |   |               | 4,232  |   |   |   | 4,212 |   |   |   | 4,550 |   |   |   | 4,525 |   |

|                     |   | Year Ended December 31, |   |
|--------------------------|--------|-------------------------|--------|
|                     |   | 2012                    |   |   | 2013 |   |   | 2014 |   |
|                     |   | (in million tonnes)     |   |
| Gasoline                 |   |                    | 40.55  |   |   |   | 45.56 |   |   |   | 51.22 |   |
| Diesel                   |   |                    | 77.39  |   |   |   | 77.40 |   |   |   | 74.26 |   |
| Kerosene and jet fuel    |   |                    | 15.01  |   |   |   | 17.43 |   |   |   | 20.75 |   |
| Light chemical feedstock |   |                    | 36.33  |   |   |   | 37.97 |   |   |   | 39.17 |   |
| Liquefied petroleum gas  |   |                    | 9.92   |   |   |   | 10.56 |   |   |   | 11.25 |   |
| Fuel oil                 |   |                    | 2.38   |   |   |   | 3.17 |   |   |   | 2.48 |   |

----

|                                                                  |   | As of and for the Year Ended December 31, |   |
|-----------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                  |   | 2012                                      |   |   | 2013 |   |   | 2014 |   |
| Primary distillation capacity of crude oil (million tonnes per annum) |   |                                      | 260.90 |   |   |   | 282.20 |   |   |   | 292.40 |   |
| Refinery throughputs (million tonnes)                                 |   |                                      | 221.31 |   |   |   | 231.95 |   |   |   | 235.38 |   |

| Refinery     |   | Primary Distillation Capacity as of December 31, 2014 |
|--------------|--------|-------------------------------------------------------|
|         |   | (in million tonnes per annum)                         |
| Maoming      |   | 23.50                                                 |
| Zhenhai      |   | 23.00                                                 |
| Jinling      |   | 21.00                                                 |
| Shanghai     |   | 16.00                                                 |
| Qilu         |   | 14.00                                                 |
| Fujian       |   | 14.00                                                 |
| Yangzi       |   | 14.00                                                 |
| Tianjin      |   | 13.80                                                 |
| Yanshan      |   | 13.50                                                 |
| Guangzhou    |   | 13.20                                                 |
| Gaoqiao      |   | 13.00                                                 |
| Qingdao      |   | 12.00                                                 |
| Changling    |   | 11.50                                                 |
| Shijiazhuang |   | 10.00                                                 |
| Hainan       |   | 9.20                                                  |
| Luoyang      |   | 8.00                                                  |
| Wuhan        |   | 8.00                                                  |
| Anqing       |   | 8.00                                                  |

----

|                                                                  |   | 2012               |   |   | 2013   |   |   | 2014   |   |
|-----------------------------------------------------------------------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|
| Total sales volume of refined petroleum products                      |   |               | 173.15 |   |   |   | 179.99 |   |   |   | 189.17 |   |
| (in million tonnes)                                                   |   |               |   |   |   |   |   |   |   |   |   |   |
| Domestic sales volume of refined petroleum products                   |   |               | 158.99 |   |   |   | 165.42 |   |   |   | 170.97 |   |
| (in million tonnes)                                                   |   |               |   |   |   |   |   |   |   |   |   |   |
| Retail                                                                |   |               | 107.85 |   |   |   | 113.73 |   |   |   | 117.84 |   |
| Wholesale and Distribution                                            |   |               | 51.14  |   |   |   | 51.69  |   |   |   | 53.13 |   |
| Average annual throughput of service stations (in tonnes per station) |   |               | 3,498  |   |   |   | 3,707  |   |   |   | 3,858 |   |
|                                                                  |   |               |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | As of December 31, |   |
|                                                                  |   |               | 2012   |   |   |   | 2013   |   |   |   | 2014 |   |
| Total number of service stations under Sinopec brand                  |   |               | 30,836 |   |   |   | 30,536 |   |   |   | 30,551 |   |
| Self-operated service stations                                        |   |               | 30,823 |   |   |   | 30,523 |   |   |   | 30,538 |   |

----

|        |   | Our Rated Capacity          |   |   | Our Production    |   | Major Plants of Production |
|-------------|--------|-----------------------------|--------|--------|-------------------|--------|----------------------------|
|        |   | (thousand tonnes per annum) |   |   | (thousand tonnes) |   |                       |
| Ethylene    |   |                        | 10,370 |   |              |   | 10,698                     |   | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Fujian*, Zhongsha (Tianjing)*, Zhenhai and Sino-Korean (Wuhan)* |
| Propylene   |   |                        | 9,610  |   |              |   | 8,887                      |   | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Gaoqiao, Anqing, Jinan, Jingmen, Fujian*, Zhongsha (Tianjing)*, Zhenhai and Sino-Korean (Wuhan)* |
| Benzene     |   |                        | 5,256  |   |              |   | 3,996                      |   | Yanshan, Shanghai, Yangzi, Qilu, Guangzhou, Zhenhai, Tianjin, Luoyang, SECCO* and BASF-YPC* |
| Styrene     |   |                        | 2,126  |   |              |   | 2,003                      |   | Yanshan, Qilu, Guangzhou, Maoming, SECCO* and Zhenhai |
| Para-xylene |   |                        | 4,839  |   |              |   | 4,791                      |   | Shanghai, Yangzi, Qilu, Tianjin, Luoyang, Zhenhai, Jinling, Fujian* and Hainan |
| Phenol      |   |                        | 608    |   |              |   | 630                        |   | Yanshan, Gaoqiao and Zhongsha (Tianjin) |

----

|                            |   | Our Rated Capacity          |   |   | Our Production    |   | Major Plants of Production |
|---------------------------------|--------|-----------------------------|--------|--------|-------------------|--------|----------------------------|
|                            |   | (thousand tonnes per annum) |   |   | (thousand tonnes) |   |                       |
| Polyethylene                    |   |                        | 6,889  |   |              |   | 7,111                      |   | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Fujian*, Zhongsha (Tianjing)*, Zhenhai and Sino-Korean (Wuhan)* |
| Polypropylene                   |   |                        | 6,605  |   |              |   | 6,212                      |   | Yanshan, Shanghai, Yangzi, Qilu, Guangzhou, Maoming, Tianjin, Zhongyuan, SECCO*,  Jingmen, Fujian*, Zhongsha (Tianjing)*, Zhenhai and Sino-Korean (Wuhan)* |
| Polyvinyl chloride              |   |                        | 600    |   |              |   | 224                        |   | Qilu |
| Polystyrene                     |   |                        | 750    |   |              |   | 649                        |   | Yanshan, Qilu, Maoming, Guangzhou, BASF-YPC* and SECCO* |
| Acrylonitrile butadiene styrene |   |                        | 200    |   |              |   | 108                        |   | Gaoqiao |

|                                                                                                                                                                                                                                    |   | Our Rated Capacity          |   |   | Our Production    |   | Major Plants of Production |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|-------------------|--------|----------------------------|
|                                                                                                                                                                                                                                    |   | (thousand tonnes per annum) |   |   | (thousand tonnes) |   |                       |
| Purified terephthalic acid                                                                                                                                                                                                              |   |                        | 3,119  |   |              |   | 2,476                      |   | Shanghai, Yangzi, Yizheng, Tianjin and Luoyang |
| Ethylene glycol                                                                                                                                                                                                                         |   |                        | 2,809  |   |              |   | 1,935                      |   | Yanshan, Shanghai, Yangzi, Tianjin, Maoming, BASF-YPC*, Zhongsha (Tianjing)*, Zhenhai and Hubei |
| Acrylonitrile                                                                                                                                                                                                                           |   |                        | 810    |   |              |   | 737                        |   | Shanghai, Anqing, Qilu and SECCO* |
| Caprolactam                                                                                                                                                                                                                             |   |                        | 660    |   |              |   | 530                        |   | Shijiazhuang and Baling |
| Polyester                                      |   |                        | 3,168  |   |              |   | 2,588                      |   | Shanghai, Yizheng, Tianjin and Luoyang |

----

|                                                                                                                                                                                                                                          |   | Our Rated Capacity          |   |   | Our Production    |   | Major Plants of Production |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|-------------------|--------|----------------------------|
|                                                                                                                                                                                                                                          |   | (thousand tonnes per annum) |   |   | (thousand tonnes) |   |                       |
| Polyester fiber                                      |   |                        | 1,227  |   |              |   | 1,053                      |   | Yizheng, Shanghai, Tianjin and Luoyang |
| Acrylic fiber                                        |   |                        | 265    |   |              |   | 257                        |   | Shanghai, Anqing and Qilu |

|                                               |   | Our Rated Capacity          |   |   | Our Production    |   | Major Plants of Operation |
|----------------------------------------------------|--------|-----------------------------|--------|--------|-------------------|--------|---------------------------|
|                                               |   | (thousand tonnes per annum) |   |   | (thousand tonnes) |   |                      |
| Cis-polybutadiene rubber                           |   |                        | 540    |   |              |   | 418                       |   | Yanshan, Qilu, Maoming and Gaoqiao |
| Styrene butadiene rubber                           |   |                        | 430    |   |              |   | 403                       |   | Yanshan, Qilu, Maoming and Gaoqiao and Yangzi |
| Styrene-butadiene-styrene thermoplastic elastomers |   |                        | 140    |   |              |   | 93                        |   | Yanshan and Maoming |
| Isobutylene isoprene rubber                        |   |                        | 135    |   |              |   | 26                        |   | Yanshan |
| Isoprene rubber                                    |   |                        | 30     |   |              |   | 0                         |   | Yanshan |

----

|   | · | Formulating guidance plan for annual production, import and export amount of crude oil, natural gas and petroleum products nationwide based on its forecast on macro-economic conditions in China; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Setting the pricing policy for refined oil 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 (2014); and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| 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 for value-added tax that we paid for (i) purchasing materials consumed during the production process; and (ii) charges paid for drilling and other engineering services. |
|                                   |   |                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Consumption tax                        |   | Aggregate volume sold or self-consumed                            |   | Effective from January 13, 2015, RMB 1.52 per liter for gasoline, naphtha, solvent and lubricant, and RMB 1.2 per liter for diesel, fuel oil and jet kerosene.                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                   |   |                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Import tariff                          |   | CIF China price                                                   |   | 5% for gasoline, 6% for diesel, 9% for jet kerosene and 6% for fuel oil. Beginning on July 1, 2011, the applicable tax rates for gasoline, fuel oil, diesel and jet kerosene are 1%, 1%, 0% and 0%, respectively.  Starting from 2014, the applicable tax rate for diesel is 1%.                                                                                                                                                                                                                                                                                           |
|                                   |   |                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Resource tax                           |   | Aggregate volume sold or self-consumed                            |   | Effective from December 1, 2014, for domestic production of crude oil and natural gas, the applicable tax rate is increased from 5% to 6% of the sales revenue, exemption or deduction may apply if qualified.                                                                                                                                                                                                                                                                                                                                                                       |
|                                   |   |                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Compensatory fee for mineral resources |   | Revenue of crude oil and natural gas                              |   | Starting from December 1, 2014, the rate of compensatory fees for mineral resources on crude oil and natural gas is reduced from 1% to zero.                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                   |   |                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Exploration license fee                |   | Area                                                              |   | RMB 100 to RMB 500 per square kilometer per annum.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                   |   |                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Production license fee                 |   | Area                                                              |   | RMB 1,000 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 and local education surcharge |   | Total amount of value-added tax, consumption tax and business tax                                                            |   | 3% and 2%.                                                                                                            |
|---------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|
|                                              |   |                                                                                                                         |   |                                                                                                                  |
| Special Oil Income Levy                           |   | Any revenue derived from sale of domestically produced crude oil when the realized crude oil price exceeds US$65 per barrel. |   | Progressive rate of 20% to 40% for revenues derived from crude oil with realized price in excess of US$65 per barrel. |

| (1) | Sino-foreign oil and gas exploration and development cooperative projects whose contracts were signed prior to November 1, 2011 and have not yet expired are still subject to royalty fee, and the project companies of those cooperative projects are not subject to any other resource taxes or fees. Sino-foreign oil and gas exploration cooperative projects whose contracts are signed after November 1, 2011 are not subject to royalty fee, but are subject to resource taxes. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

|   | None. |
|--------|-------|

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

|   | A. | GENERAL |
|--------|----|---------|

----

----

|                       |   | Year ended December 31, |   |
|----------------------------|--------|-------------------------|--------|
|                       |   | 2012                    |   |   | 2013 |   |   | 2014 |   |
|                       |   | (RMB in millions)       |   |
| Exploration and production |   |                    | 1,006  |   |   |   | 2,523 |   |   |   | 2,436 |   |
| Refining                   |   |                    | -      |   |   |   | 88 |   |   |   | 29 |   |
| Marketing and distribution |   |                    | 8      |   |   |   | 35 |   |   |   | 40 |   |
| Chemicals                  |   |                    | -      |   |   |   | - |   |   |   | 1,106 |   |
| Corporate and others       |   |                    | -      |   |   |   | 15 |   |   |   | 8 |   |
| Total                      |   |                    | 1,014  |   |   |   | 2,661 |   |   |   | 3,619 |   |
|                       |   |                    |   |   |   |   |   |   |   |   |   |   |

|                                      |   | Year ended December 31, |   |
|-------------------------------------------|--------|-------------------------|--------|
|                                      |   | 2012                    |   |   | 2013 |   |   | 2014 |   |
|                                      |   | (RMB in millions)       |   |
| Balance as of January 1                   |   |                    | 1,012  |   |   |   | 699 |   |   |   | 574 |   |
| Impairment losses recognized for the year |   |                    | 44     |   |   |   | 36 |   |   |   | 44 |   |
| Reversal of impairment losses             |   |                    | (155   | ) |   |   | (38 | ) |   |   | (15 | ) |
| Written off                          |   |                    | (202   | ) |   |   | (123 | ) |   |   | (57 | ) |
| Others                                    |   |                    | -      |   |   |   | - |   |   |   | (16 | ) |
| Balance as of December 31                 |   |                    | 699    |   |   |   | 574 |   |   |   | 530 |   |
|                                      |   |                    |   |   |   |   |   |   |   |   |   |   |

|                                           |   | Year ended December 31, |   |
|------------------------------------------------|--------|-------------------------|--------|
|                                           |   | 2012                    |   |   | 2013 |   |   | 2014 |   |
|                                           |   | (RMB in millions)       |   |
| Balance as of January 1                        |   |                    | 1,382  |   |   |   | 491 |   |   |   | 1,751 |   |
| Allowance for the year     |   |                    | 7,419  |   |   |   | 1,453 |   |   |   | 3,327 |   |
| Reversal of allowance on disposal              |   |                    | (378   | ) |   |   | (1 | ) |   |   | (136 | ) |
| Written off                                    |   |                    | (7,943 | ) |   |   | (192 | ) |   |   | (1,327 | ) |
| Others                                         |   |                    | 11     |   |   |   | - |   |   |   | (12 | ) |
| Balance as of December 31                      |   |                    | 491    |   |   |   | 1,751 |   |   |   | 3,603 |   |
|                                           |   |                    |   |   |   |   |   |   |   |   |   |   |

----

|   | · | 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. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                         |   | Year Ended December 31, |       |   | Change from 2013 to |   |
|------------------------------------------------------------------------------|--------|-------------------------|------------|--------|---------------------|--------|
|                                                                         |   | 2014                    |       |   | 2013                |   |   | 2014 |   |
|                                                                         |   | (RMB in millions)       |       |   | %                   |   |
| Operating revenues                                                      |   |                    | 2,825,914  |   |                |   | 2,880,311 |   |   |   | (1.9 | ) |
| Sales of goods                                                               |   |                    | 2,781,641  |   |                |   | 2,833,247 |   |   |   | (1.8 | ) |
| Other operating revenues                                                     |   |                    | 44,273     |   |                |   | 47,064 |   |   |   | (5.9 | ) |
| Operating expenses                                                           |   |                    | (2,752,427 | )      |                |   | (2,783,526 | ) |   |   | (1.1 | ) |
| Purchased crude oil, products and operating supplies and expenses            |   |                    | (2,334,399 | )      |                |   | (2,371,858 | ) |   |   | (1.6 | ) |
| Selling, general and administrative expenses                                 |   |                    | (68,374    | )      |                |   | (69,928 | ) |   |   | (2.2 | ) |
| Depreciation, depletion and amortization                                     |   |                    | (90,097    | )      |                |   | (81,265 | ) |   |   | 10.9 |   |
| Exploration expenses, including dry holes                                    |   |                    | (10,969    | )      |                |   | (12,573 | ) |   |   | (12.8 | ) |
| Personnel expenses                                                           |   |                    | (57,233    | )      |                |   | (55,353 | ) |   |   | 3.4 |   |
| Taxes other than income tax                                                  |   |                    | (191,202   | )      |                |   | (190,672 | ) |   |   | 0.3 |   |
| Other operating (expenses)/income, net                                       |   |                    | (153       | )      |                |   | (1,877 | ) |   |   | (91.8 | ) |
| Operating income                                                             |   |                    | 73,487     |   |                |   | 96,785 |   |   |   | (24.1 | ) |
| Net finance costs                                                            |   |                    | (14,229    | )      |                |   | (4,246 | ) |   |   | 235.1 |   |
| Investment income and income from associates and jointly controlled entities |   |                    | 6,246      |   |                |   | 2,513 |   |   |   | 148.5 |   |
| Earnings before income tax                                                   |   |                    | 65,504     |   |                |   | 95,052 |   |   |   | (31.1 | ) |
| Tax expense                                                                  |   |                    | (17,571    | )      |                |   | (24,763 | ) |   |   | (29.0 | ) |
| Net income                                                                   |   |                    | 47,933     |   |                |   | 70,289 |   |   |   | (31.8 | ) |
| Attributable to:                                                             |   |                    |       |   |                |   |   |   |   |   |   |   |
| Equity shareholders of the Company                                           |   |                    | 46,466     |   |                |   | 66,132 |   |   |   | (29.7 | ) |
| Non-controlling interests                                                    |   |                    | 1,467      |   |                |   | 4,157 |   |   |   | (64.7 | ) |
|                                                                         |   |                    |       |   |                |   |   |   |   |   |   |   |

----

|                                |   | Sales Volume      |    |   | Change from2013 to 2014 |   |   | Average Realized Price |   |   | Change from2013 to 2014 |   |
|-------------------------------------|--------|-------------------|---------|--------|-------------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|
|                                |   | 2014              |    |   | 2013                    |   |   |                   |   | 2014   |                    |   | 2013 |   |   |   |
|                                |   | (thousand tonnes) |    |   | (%)                     |   |   | (RMB per tonne)        |   |   | (%)                     |   |
|                                |   |              |    |   |                    |   |   |                   |   |   |                    |   |   |   |   |   |   |   |
| Crude oil                           |   |              | 8,864   |   |                    |   | 7,604  |                   |   |   | 16.6                    |   |   |   | 4,008 |   |   |   | 4,253 |   |   |   | (5.8 | ) |
| Domestic                            |   |              | 8,780   |   |                    |   | 7,582  |                   |   |   | 15.8                    |   |   |   | 4,001 |   |   |   | 4,252 |   |   |   | (5.9 | ) |
| Oversea                             |   |              | 84      |   |                    |   | 22     |                   |   |   | 281.8                   |   |   |   | 4,691 |   |   |   | 4,678 |   |   |   | 0.3 |   |
| Natural gas                         |   |              | 16,661  |   |                    |   | 15,907 | (1)                    |   |   | 4.7                     |   |   |   | 1,589 |   |   |   | 1,336 | (2) |   |   | 18.9 |   |
| Gasoline                            |   |              | 64,083  |   |                    |   | 59,482 |                   |   |   | 7.7                     |   |   |   | 8,339 |   |   |   | 8,498 |   |   |   | (1.9 | ) |
| Diesel                              |   |              | 102,724 |   |                    |   | 99,855 |                   |   |   | 2.9                     |   |   |   | 6,647 |   |   |   | 7,050 |   |   |   | (5.7 | ) |
| Kerosene                            |   |              | 21,845  |   |                    |   | 20,162 |                   |   |   | 8.3                     |   |   |   | 5,710 |   |   |   | 6,116 |   |   |   | (6.6 | ) |
| Basic chemical feedstock            |   |              | 27,277  |   |                    |   | 25,838 |                   |   |   | 5.6                     |   |   |   | 6,151 |   |   |   | 6,870 |   |   |   | (10.5 | ) |
| Synthetic fiber monomer and polymer |   |              | 6,479   |   |                    |   | 6,856  |                   |   |   | (5.5                    | )      |   |   | 7,223 |   |   |   | 8,167 |   |   |   | (11.6 | ) |
| Synthetic resin                     |   |              | 11,584  |   |                    |   | 10,696 |                   |   |   | 8.3                     |   |   |   | 9,684 |   |   |   | 9,631 |   |   |   | 0.6 |   |
| Synthetic fiber                     |   |              | 1,430   |   |                    |   | 1,488  |                   |   |   | (3.9                    | )      |   |   | 9,436 |   |   |   | 10,356 |   |   |   | (8.9 | ) |
| Synthetic rubber                    |   |              | 1,205   |   |                    |   | 1,346  |                   |   |   | (10.5                   | )      |   |   | 10,554 |   |   |   | 12,214 |   |   |   | (13.6 | ) |
| Chemical fertilizer                 |   |              | 598     |   |                    |   | 1,129  |                   |   |   | (47.0                   | )      |   |   | 1,686 |   |   |   | 1,698 |   |   |   | (0.7 | ) |

| (1) | million cubic meters |
|-----|----------------------|

| (2) | RMB per thousand cubic meters |
|-----|-------------------------------|

----

|   | · | crude oil purchase expenses were RMB 837.4 billion, representing a decrease of 4.2% over 2013. In 2014, the total throughput of crude oil that was purchased externally was 177.29 million tonnes (excluding the amount processed for third parties), representing a decrease of 0.6% over 2013; the average unit processing cost for crude oil purchased externally was RMB 4,724 per tonne, representing a decrease of 3.6% over 2013; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other purchasing expenses were RMB 1,497.0 billion, remaining consistent with that of 2013. |
|--------|--------|---------------------------------------------------------------------------------------------|

----

|                                                                              |   | Year Ended December 31, |       |   | Change from 2012 to 2013 |   |
|-----------------------------------------------------------------------------------|--------|-------------------------|------------|--------|--------------------------|--------|
|                                                                              |   | 2013                    |       |   | 2012                     |   |   |   |
|                                                                              |   | (RMB in millions)       |       |   | %                        |   |
| Operating revenues                                                                |   |                    | 2,880,311  |   |                     |   | 2,786,045 |   |   |   | 3.4 |   |
| Sales of goods                                                                    |   |                    | 2,833,247  |   |                     |   | 2,733,618 |   |   |   | 3.6 |   |
| Other operating revenues                                                          |   |                    | 47,064     |   |                     |   | 52,427 |   |   |   | (10.2 | ) |
| Operating expenses                                                                |   |                    | (2,783,526 | )      |                     |   | (2,687,383 | ) |   |   | 3.6 |   |
| Purchased crude oil, products and operating supplies and expenses                 |   |                    | (2,371,858 | )      |                     |   | (2,301,199 | ) |   |   | 3.1 |   |
| Selling, general and administrative expenses                                      |   |                    | (69,928    | )      |                     |   | (61,174 | ) |   |   | 14.3 |   |
| Depreciation, depletion and amortization                                          |   |                    | (81,265    | )      |                     |   | (70,456 | ) |   |   | 15.3 |   |
| Exploration expenses, including dry holes                                         |   |                    | (12,573    | )      |                     |   | (15,533 | ) |   |   | (19.1 | ) |
| Personnel expenses                                                                |   |                    | (55,353    | )      |                     |   | (51,767 | ) |   |   | 6.9 |   |
| Taxes other than income tax                                                       |   |                    | (190,672   | )      |                     |   | (188,483 | ) |   |   | 1.2 |   |
| Other operating (expenses)/income, net                                            |   |                    | (1,877     | )      |                     |   | 1,229 |   |   |   | - |   |
| Operating income                                                                  |   |                    | 96,785     |   |                     |   | 98,662 |   |   |   | (1.9 | ) |
| Net finance costs                                                                 |   |                    | (4,246     | )      |                     |   | (9,881 | ) |   |   | (57.0 | ) |
| Investment income and income from associates and jointly controlled entities |   |                    | 2,513      |   |                     |   | 1,861 |   |   |   | 35.0 |   |
| Earnings before income tax                                                        |   |                    | 95,052     |   |                     |   | 90,642 |   |   |   | 4.9 |   |
| Tax expense                                                                       |   |                    | (24,763    | )      |                     |   | (23,846 | ) |   |   | 3.8 |   |
| Net income                                                                        |   |                    | 70,289     |   |                     |   | 66,796 |   |   |   | 5.2 |   |
| Attributable to:                                                                  |   |                    |       |   |                     |   |   |   |   |   |   |   |
| Equity shareholders of the Company                                                |   |                    | 66,132     |   |                     |   | 63,879 |   |   |   | 3.5 |   |
| Non-controlling interests                                                         |   |                    | 4,157      |   |                     |   | 2,917 |   |   |   | 42.5 |   |
|                                                                              |   |                    |       |   |                     |   |   |   |   |   |   |   |

----

|                                |   | Sales Volume      |   |   | Change from2012 to 2013 |   |   | Average Realized Price |   |   | Change from2012 to 2013 |   |
|-------------------------------------|--------|-------------------|--------|--------|-------------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|
|                                |   | 2013              |   |   | 2012                    |   |   |                   |   | 2013   |                    |   | 2012 |   |   |   |
|                                |   | (thousand tonnes) |   |   | (%)                     |   |   | (RMB per tonne)        |   |   | (%)                     |   |
|                                |   |              |   |   |                    |   |   |                   |   |   |                    |   |   |   |   |   |   |   |
| Crude oil                           |   |              | 7,604  |   |                    |   | 6,221  |                   |   |   | 22.2                    |   |   |   | 4,253 |   |   |   | 4,579 |   |   |   | (7.1 | ) |
| Natural gas                         |   |              | 15,907 | (1)    |                    |   | 14,431 | (1)                    |   |   | 10.2                    |   |   |   | 1,336 | (2) |   |   | 1,281 | (2) |   |   | 4.3 |   |
| Gasoline                            |   |              | 59,482 |   |                    |   | 53,488 |                   |   |   | 11.2                    |   |   |   | 8,498 |   |   |   | 8,615 |   |   |   | (1.4 | ) |
| Diesel                              |   |              | 99,855 |   |                    |   | 99,864 |                   |   |   | 0.0                     |   |   |   | 7,050 |   |   |   | 7,219 |   |   |   | (2.3 | ) |
| Kerosene                            |   |              | 20,162 |   |                    |   | 18,760 |                   |   |   | 7.5                     |   |   |   | 6,116 |   |   |   | 6,416 |   |   |   | (4.7 | ) |
| Basic chemical feedstock            |   |              | 25,838 |   |                    |   | 23,387 |                   |   |   | 10.5                    |   |   |   | 6,870 |   |   |   | 6,740 |   |   |   | 1.9 |   |
| Synthetic fiber monomer and polymer |   |              | 6,856  |   |                    |   | 6,943  |                   |   |   | (1.3                    | )      |   |   | 8,167 |   |   |   | 8,238 |   |   |   | (0.9 | ) |
| Synthetic resin                     |   |              | 10,696 |   |                    |   | 10,503 |                   |   |   | 1.8                     |   |   |   | 9,631 |   |   |   | 9,181 |   |   |   | 4.9 |   |
| Synthetic fiber                     |   |              | 1,488  |   |                    |   | 1,458  |                   |   |   | 2.1                     |   |   |   | 10,356 |   |   |   | 10,790 |   |   |   | (4.0 | ) |
| Synthetic rubber                    |   |              | 1,346  |   |                    |   | 1,287  |                   |   |   | 4.6                     |   |   |   | 12,214 |   |   |   | 17,564 |   |   |   | (30.5 | ) |
| Chemical fertilizer                 |   |              | 1,129  |   |                    |   | 1,193  |                   |   |   | (5.4                    | )      |   |   | 1,698 |   |   |   | 2,052 |   |   |   | (17.3 | ) |

| (1) | million cubic meters |
|-----|----------------------|

| (2) | RMB per thousand cubic meters |
|-----|-------------------------------|

----

|   | · | crude oil purchase expenses were RMB 874.3 billion, representing a decrease of 0.7% over 2012. In 2013, the total throughput of crude oil that was purchased externally was 178.43 million tonnes (excluding the amount processed for third parties), representing an increase of 5.8% over 2012; the average unit processing cost for crude oil purchased externally was RMB 4,900 per tonne, representing a decrease of 6.2% over 2012; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other purchasing expenses were RMB 1,497.6 billion, representing an increase of 5.4% over 2012. This was mainly due to the expansion of our trading activities. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|                                                           |   | Year Ended December 31, |   |   | As a Percentage of Consolidated Operating Revenues Before Elimination of Inter-segment Sales |   |   | As a Percentage of Consolidated Operating Revenues After Elimination of Inter-segment Sales |   |
|----------------------------------------------------------------|--------|-------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------|--------|
|                                                           |   | 2012                    |   |   | 2013                                                                                         |   |   | 2014                                                                                        |   |   | 2013 |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |
|                                                           |   | (RMB in billions)       |   |   | (%)                                                                                          |   |   | (%)                                                                                         |   |   | (%) |   |   | (%) |   |
| Exploration and production                                     |   |                    |   |   |                                                                                         |   |   |                                                                                        |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                              |   |                    | 82     |   |                                                                                         |   | 83     |                                                                                        |   |   | 86 |   |   |   | 1.7 |   |   |   | 1.8 |   |   |   | 2.9 |   |   |   | 3.0 |   |
| Inter-segment sales                                            |   |                    | 175    |   |                                                                                         |   | 159    |                                                                                        |   |   | 142 |   |   |   | 3.3 |   |   |   | 3.0 |   |   |   |   |   |   |   |   |
| Total operating revenue                                        |   |                    | 257    |   |                                                                                         |   | 242    |                                                                                        |   |   | 228 |   |   |   | 5.0 |   |   |   | 4.8 |   |   |   |   |   |   |   |   |
| Refining                                                       |   |                    |   |   |                                                                                         |   |   |                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                              |   |                    | 200    |   |                                                                                         |   | 200    |                                                                                        |   |   | 181 |   |   |   | 4.1 |   |   |   | 3.8 |   |   |   | 7.0 |   |   |   | 6.4 |   |
| Inter-segment sales                                            |   |                    | 1,071  |   |                                                                                         |   | 1,111  |                                                                                        |   |   | 1,092 |   |   |   | 22.9 |   |   |   | 23.2 |   |   |   |   |   |   |   |   |
| Total operating revenue                                        |   |                    | 1,271  |   |                                                                                         |   | 1,311  |                                                                                        |   |   | 1,273 |   |   |   | 27.0 |   |   |   | 27.0 |   |   |   |   |   |   |   |   |
| Marketing and distribution                                     |   |                    |   |   |                                                                                         |   |   |                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                              |   |                    | 1,462  |   |                                                                                         |   | 1,496  |                                                                                        |   |   | 1,471 |   |   |   | 30.8 |   |   |   | 31.2 |   |   |   | 51.9 |   |   |   | 52.1 |   |
| Inter-segment sales                                            |   |                    | 10     |   |                                                                                         |   | 6      |                                                                                        |   |   | 6 |   |   |   | 0.1 |   |   |   | 0.1 |   |   |   |   |   |   |   |   |
| Total operating revenue                                        |   |                    | 1,472  |   |                                                                                         |   | 1,502  |                                                                                        |   |   | 1,477 |   |   |   | 30.9 |   |   |   | 31.3 |   |   |   |   |   |   |   |   |
| Chemicals                                                      |   |                    |   |   |                                                                                         |   |   |                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                              |   |                    | 364    |   |                                                                                         |   | 382    |                                                                                        |   |   | 365 |   |   |   | 7.9 |   |   |   | 7.7 |   |   |   | 13.2 |   |   |   | 12.9 |   |
| Inter-segment sales                                            |   |                    | 48     |   |                                                                                         |   | 56     |                                                                                        |   |   | 62 |   |   |   | 1.2 |   |   |   | 1.3 |   |   |   |   |   |   |   |   |
| Total operating revenue                                        |   |                    | 412    |   |                                                                                         |   | 438    |                                                                                        |   |   | 427 |   |   |   | 9.1 |   |   |   | 9.0 |   |   |   |   |   |   |   |   |
| Corporate and others                                           |   |                    |   |   |                                                                                         |   |   |                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External sales(1)                                              |   |                    | 678    |   |                                                                                         |   | 719    |                                                                                        |   |   | 723 |   |   |   | 14.8 |   |   |   | 15.3 |   |   |   | 25.0 |   |   |   | 25.6 |   |
| Inter-segment sales                                            |   |                    | 635    |   |                                                                                         |   | 640    |                                                                                        |   |   | 587 |   |   |   | 13.2 |   |   |   | 12.5 |   |   |   |   |   |   |   |   |
| Total operating revenue                                        |   |                    | 1,313  |   |                                                                                         |   | 1,359  |                                                                                        |   |   | 1,310 |   |   |   | 28.0 |   |   |   | 27.8 |   |   |   |   |   |   |   |   |
| Total operating revenue before inter-segment eliminations |   |                    | 4,725  |   |                                                                                         |   | 4,852  |                                                                                        |   |   | 4,715 |   |   |   | 100.0 |   |   |   | 100.0 |   |   |   |   |   |   |   |   |
| Elimination of inter-segment sales                             |   |                    | (1,939 | )      |                                                                                         |   | (1,972 | )                                                                                           |   |   | (1,889 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated operating revenues                                |   |                    | 2,786  |   |                                                                                         |   | 2,880  |                                                                                        |   |   | 2,826 |   |   |   |   |   |   |   |   |   |   |   | 100.0 |   |   |   | 100.0 |   |
|                                                           |   |                    |   |   |                                                                                         |   |   |                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

----

|                                       |   | Year Ended December 31, |   |   | Change from 2013 to 2014 |   |
|--------------------------------------------|--------|-------------------------|--------|--------|--------------------------|--------|
|                                       |   | 2012                    |   |   | 2013                     |   |   | 2014 |   |   |   |
|                                       |   | (RMB in billions)       |   |   | (%)                      |   |
| Exploration and production                 |   |                    |   |   |                     |   |   |   |   |   |   |   |
| Total operating revenues                   |   |                    | 257    |   |                     |   | 242 |   |   |   | 228 |   |   |   | (5.8 | ) |
| Total operating expenses                   |   |                    | (187   | )      |                     |   | (187 | ) |   |   | (181 | ) |   |   | (3.2 | ) |
| Total operating income                     |   |                    | 70     |   |                     |   | 55 |   |   |   | 47 |   |   |   | (14.5 | ) |
| Refining                                   |   |                    |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Total operating revenues                   |   |                    | 1,271  |   |                     |   | 1,311 |   |   |   | 1,273 |   |   |   | (2.9 | ) |
| Total operating expenses                   |   |                    | (1,282 | )      |                     |   | (1,302 | ) |   |   | (1,275 | ) |   |   | (2.1 | ) |
| Total operating income/(loss)              |   |                    | (11    | )      |                     |   | 9 |   |   |   | (2 | ) |   |   | - |   |
| Marketing and distribution                 |   |                    |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Total operating revenues                   |   |                    | 1,472  |   |                     |   | 1,502 |   |   |   | 1,477 |   |   |   | (1.7 | ) |
| Total operating expenses                   |   |                    | (1,429 | )      |                     |   | (1,467 | ) |   |   | (1,448 | ) |   |   | (1.3 | ) |
| Total operating income                     |   |                    | 43     |   |                     |   | 35 |   |   |   | 29 |   |   |   | (17.1 | ) |
| Chemicals                                  |   |                    |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Total operating revenues                   |   |                    | 412    |   |                     |   | 438 |   |   |   | 427 |   |   |   | (2.5 | ) |
| Total operating expenses                   |   |                    | (411   | )      |                     |   | (437 | ) |   |   | (429 | ) |   |   | (1.8 | ) |
| Total operating income                     |   |                    | 1      |   |                     |   | 1 |   |   |   | (2 | ) |   |   | - |   |
| Corporate and others                       |   |                    |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Total operating revenues                   |   |                    | 1,313  |   |                     |   | 1,359 |   |   |   | 1,310 |   |   |   | (3.6 | ) |
| Total operating expenses                   |   |                    | (1,315 | )      |                     |   | (1,362 | ) |   |   | (1,311 | ) |   |   | (3.7 | ) |
| Total operating loss                       |   |                    | (2     | )      |                     |   | (3 | ) |   |   | (1 | ) |   |   | (66.7 | ) |
| Elimination of inter-segment income (loss) |   |                    | (1     | )      |                     |   | 1 |   |   |   | 2 |   |   |   | - |   |
|                                       |   |                    |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

|   | · | The exploration expenses decreased by RMB 1.6 billion over 2013, reflecting our optimization of exploration investment which improve the exploration efficiency; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The special oil income levy, resource tax and other taxes decreased by RMB 3.4 billion due to the decline in crude oil price; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other operation expenses decreased by 6.1 billion due to the decrease of raw material sales expenses which is related to the decline in sales revenue; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The expense of depreciation, depletion and amortization increased by RMB 4.8 billion over 2013. |
|--------|--------|-------------------------------------------------------------------------------------------------|

----

|   | · | The expenses of rent for land and community service expenses increased by RMB 4.0 billion over 2012; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | The expense of depreciation, depletion and amortization increased by RMB 4.8 billion over 2012; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | The exploration expenses decreased by RMB 3.0 billion over 2012, reflecting our enhanced exploration activities which improve the exploration efficiency; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The special oil income levy, resource tax and other taxes decreased by RMB 4.4 billion. |
|--------|--------|-----------------------------------------------------------------------------------------|

|                             |   | Sales volume      |   |   | Change from2013 to 2014 |   |   | Average realized prices |   |   | Change from2013 to 2014 |   |
|----------------------------------|--------|-------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                             |   | 2014              |   |   | 2013                    |   |   |                    |   | 2014   |                    |   | 2013 |   |   |   |
|                             |   | (thousand tonnes) |   |   | (%)                     |   |   | (RMB per tonne)         |   |   | (%)                     |   |
| Gasoline                         |   |              | 47,786 |   |                    |   | 42,759 |                    |   |   | 11.8                    |   |   |   | 7,784 |   |   |   | 7,879 |   |   |   | (1.2 | ) |
| Diesel                           |   |              | 67,945 |   |                    |   | 72,402 |                    |   |   | (6.2                    | )      |   |   | 6,288 |   |   |   | 6,571 |   |   |   | (4.3 | ) |
| Kerosene                         |   |              | 12,410 |   |                    |   | 11,944 |                    |   |   | 3.9                     |   |   |   | 5,705 |   |   |   | 6,116 |   |   |   | (6.7 | ) |
| Chemical feedstock               |   |              | 37,690 |   |                    |   | 36,353 |                    |   |   | 3.7                     |   |   |   | 5,333 |   |   |   | 5,722 |   |   |   | (6.8 | ) |
| Other refined petroleum products |   |              | 49,901 |   |                    |   | 51,207 |                    |   |   | (2.6                    | )      |   |   | 3,943 |   |   |   | 4,136 |   |   |   | (4.7 | ) |

----

|                             |   | Sales volume      |   |   | Change from2012 to 2013 |   |   | Average realized prices |   |   | Change from2012 to 2013 |   |
|----------------------------------|--------|-------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                             |   | 2013              |   |   | 2012                    |   |   |                    |   | 2013   |                    |   | 2012 |   |   |   |
|                             |   | (thousand tonnes) |   |   | (%)                     |   |   | (RMB per tonne)         |   |   | (%)                     |   |
| Gasoline                         |   |              | 42,759 |   |                    |   | 38,473 |                    |   |   | 11.1                    |   |   |   | 7,879 |   |   |   | 7,957 |   |   |   | (1.0 | ) |
| Diesel                           |   |              | 72,402 |   |                    |   | 72,883 |                    |   |   | (0.7                    | )      |   |   | 6,571 |   |   |   | 6,682 |   |   |   | (1.7 | ) |
| Kerosene                         |   |              | 11,944 |   |                    |   | 10,262 |                    |   |   | 16.4                    |   |   |   | 6,116 |   |   |   | 6,379 |   |   |   | (4.1 | ) |
| Chemical feedstock               |   |              | 36,353 |   |                    |   | 34,431 |                    |   |   | 5.6                     |   |   |   | 5,722 |   |   |   | 5,983 |   |   |   | (4.4 | ) |
| Other refined petroleum products |   |              | 51,207 |   |                    |   | 46,932 |                    |   |   | 9.1                     |   |   |   | 4,136 |   |   |   | 4,267 |   |   |   | (3.1 | ) |

----

|                       |   | Sales Volume      |    |   | Change from2013 to 2014 |   |    | Average Realized Prices |   |   | Change from2013 to 2014 |   |
|----------------------------|--------|-------------------|---------|--------|-------------------------|--------|---------|-------------------------|--------|--------|-------------------------|--------|
|                       |   | 2014              |    |   | 2013                    |   |    |                    |   | 2014   |                    |   | 2013 |   |   |   |
|                       |   | (thousand tonnes) |    |   | (%)                     |   |    | (RMB per tonne)         |   |   | (%)                     |   |
| Gasoline                   |   |              | 64,190  |   |                    |   | 59,523  |                    |   |   | 7.8                     |   |   |   | 8,338 |   |   |   | 8,498 |   |   |   | (1.9 | ) |
| Retail sale                |   |              | 53,003  |   |                    |   | 49,733  |                    |   |   | 6.6                     |   |   |   | 8,585 |   |   |   | 8,690 |   |   |   | (1.2 | ) |
| Wholesale and distribution |   |              | 11,187  |   |                    |   | 9,791   |                    |   |   | 14.3                    |   |   |   | 7,166 |   |   |   | 7,524 |   |   |   | (4.8 | ) |
| Diesel                     |   |              | 103,255 |   |                    |   | 100,477 |                    |   |   | 2.8                     |   |   |   | 6,648 |   |   |   | 7,049 |   |   |   | (5.7 | ) |
| Retail sale                |   |              | 55,934  |   |                    |   | 58,148  |                    |   |   | (3.8                    | )      |   |   | 7,029 |   |   |   | 7,325 |   |   |   | (4.0 | ) |
| Wholesale and distribution |   |              | 47,322  |   |                    |   | 42,328  |                    |   |   | 11.8                    |   |   |   | 6,196 |   |   |   | 6,671 |   |   |   | (7.1 | ) |
| Kerosene                   |   |              | 21,845  |   |                    |   | 20,232  |                    |   |   | 8.0                     |   |   |   | 5,710 |   |   |   | 6,116 |   |   |   | (6.6 | ) |
| Fuel oil                   |   |              | 25,537  |   |                    |   | 33,100  |                    |   |   | (22.8                   | )      |   |   | 4,016 |   |   |   | 4,333 |   |   |   | (7.3 | ) |

----

|                       |   | Sales Volume      |    |   | Change from2012 to 2013 |   |    | Average Realized Prices |   |   | Change from2012 to 2013 |   |
|----------------------------|--------|-------------------|---------|--------|-------------------------|--------|---------|-------------------------|--------|--------|-------------------------|--------|
|                       |   | 2013              |    |   | 2012                    |   |    |                    |   | 2013   |                    |   | 2012 |   |   |   |
|                       |   | (thousand tonnes) |    |   | (%)                     |   |    | (RMB per tonne)         |   |   | (%)                     |   |
| Gasoline                   |   |              | 59,523  |   |                    |   | 53,535  |                    |   |   | 11.2                    |   |   |   | 8,498 |   |   |   | 8,614 |   |   |   | (1.4 | ) |
| Retail sale                |   |              | 49,733  |   |                    |   | 45,477  |                    |   |   | 9.4                     |   |   |   | 8,690 |   |   |   | 8,744 |   |   |   | (0.6 | ) |
| Wholesale and distribution |   |              | 9,791   |   |                    |   | 8,058   |                    |   |   | 21.5                    |   |   |   | 7,524 |   |   |   | 7,881 |   |   |   | (4.5 | ) |
| Diesel                     |   |              | 100,477 |   |                    |   | 100,790 |                    |   |   | (0.3                    | )      |   |   | 7,049 |   |   |   | 7,213 |   |   |   | (2.3 | ) |
| Retail sale                |   |              | 58,148  |   |                    |   | 57,382  |                    |   |   | 1.3                     |   |   |   | 7,325 |   |   |   | 7,454 |   |   |   | (1.7 | ) |
| Wholesale and distribution |   |              | 42,328  |   |                    |   | 43,408  |                    |   |   | (2.5                    | )      |   |   | 6,671 |   |   |   | 6,895 |   |   |   | (3.2 | ) |
| Kerosene                   |   |              | 20,232  |   |                    |   | 18,741  |                    |   |   | 8.0                     |   |   |   | 6,116 |   |   |   | 6,416 |   |   |   | (4.7 | ) |
| Fuel oil                   |   |              | 33,100  |   |                    |   | 29,690  |                    |   |   | 11.5                    |   |   |   | 4,333 |   |   |   | 4,622 |   |   |   | (6.3 | ) |

----

|                                  |   | Sales Volume      |   |   | Change from2013 to 2014 |   |   | Average Realized Prices |   |   | Change from2013 to 2014 |   |
|---------------------------------------|--------|-------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                  |   | 2014              |   |   | 2013                    |   |   |                    |   | 2014   |                    |   | 2013 |   |   |   |
|                                  |   | (thousand tonnes) |   |   | (%)                     |   |   | (RMB per tonne)         |   |   | (%)                     |   |
| Basic organic chemicals               |   |              | 35,788 |   |                    |   | 32,971 |                    |   |   | 8.5                     |   |   |   | 6,118 |   |   |   | 6,764 |   |   |   | (9.6 | ) |
| Synthetic fiber monomers and polymers |   |              | 6,496  |   |                    |   | 6,883  |                    |   |   | (5.6                    | )      |   |   | 7,220 |   |   |   | 8,161 |   |   |   | (11.5 | ) |
| Synthetic resins                      |   |              | 11,603 |   |                    |   | 10,700 |                    |   |   | 8.4                     |   |   |   | 9,679 |   |   |   | 9,631 |   |   |   | 0.5 |   |
| Synthetic fiber                       |   |              | 1,430  |   |                    |   | 1,488  |                    |   |   | (3.9                    | )      |   |   | 9,436 |   |   |   | 10,356 |   |   |   | (8.9 | ) |
| Synthetic rubber                      |   |              | 1,207  |   |                    |   | 1,349  |                    |   |   | (10.5                   | )      |   |   | 10,549 |   |   |   | 12,203 |   |   |   | (13.6 | ) |
| Chemical fertilizer                   |   |              | 598    |   |                    |   | 1,129  |                    |   |   | (47.0                   | )      |   |   | 1,686 |   |   |   | 1,698 |   |   |   | (0.7 | ) |

|                                  |   | Sales Volume      |   |   | Change from2012 to 2013 |   |   | Average Realized Prices |   |   | Change from2012 to 2013 |   |
|---------------------------------------|--------|-------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                  |   | 2013              |   |   | 2012                    |   |   |                    |   | 2013   |                    |   | 2012 |   |   |   |
|                                  |   | (thousand tonnes) |   |   | (%)                     |   |   | (RMB per tonne)         |   |   | (%)                     |   |
| Basic organic chemicals               |   |              | 32,971 |   |                    |   | 29,873 |                    |   |   | 10.4                    |   |   |   | 6,764 |   |   |   | 6,667 |   |   |   | 1.5 |   |
| Synthetic fiber monomers and polymers |   |              | 6,883  |   |                    |   | 6,972  |                    |   |   | (1.3                    | )      |   |   | 8,161 |   |   |   | 8,231 |   |   |   | (0.9 | ) |
| Synthetic resins                      |   |              | 10,700 |   |                    |   | 10,507 |                    |   |   | 1.8                     |   |   |   | 9,631 |   |   |   | 9,182 |   |   |   | 4.9 |   |
| Synthetic fiber                       |   |              | 1,488  |   |                    |   | 1,458  |                    |   |   | 2.1                     |   |   |   | 10,356 |   |   |   | 10,790 |   |   |   | (4.0 | ) |
| Synthetic rubber                      |   |              | 1,349  |   |                    |   | 1,289  |                    |   |   | 4.7                     |   |   |   | 12,203 |   |   |   | 17,553 |   |   |   | (30.5 | ) |
| Chemical fertilizer                   |   |              | 1,129  |   |                    |   | 1,232  |                    |   |   | (8.4                    | )      |   |   | 1,698 |   |   |   | 2,044 |   |   |   | (16.9 | ) |

----

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

|                                               |   | Year Ended December 31, |     |
|----------------------------------------------------|--------|-------------------------|----------|
| Statement of cash flow data                        |   | 2014                    |     |   | 2013 |   |   | 2012 |   |
|                                               |   | (RMB in millions)       |     |
| Net cash generated from operating activities       |   |                    | 148,347  |   |   |   | 151,893 |   |   |   | 142,380 |   |
| Net cash used in investing activities              |   |                    | (132,633 | ) |   |   | (178,740 | ) |   |   | (162,197 | ) |
| Net cash used/generated from financing activities  |   |                    | (21,421  | ) |   |   | 31,519 |   |   |   | 5,628 |   |
| Net decrease/increase in cash and cash equivalents |   |                    | (5,707   | ) |   |   | 4,672 |   |   |   | (14,189 | ) |

----

|                                |   | As of December 31, 2014 |    |
|-------------------------------------|--------|-------------------------|---------|
|                                |   | Total                   |    |   | less than1 year |   |   | 1-3 years |   |   | 4-5 years |   |   | After 5 years |   |
|                                |   |                    |    |   | (RMB in millions) |   |
| Contractual obligations(1)          |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term debt                     |   |                    | 179,437 |   |   |   | 179,437 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Long-term debt                      |   |                    | 173,957 |   |   |   | 4,590 |   |   |   | 54,905 |   |   |   | 32,662 |   |   |   | 81,800 |   |
| Total contractual obligations       |   |                    | 353,394 |   |   |   | 184,027 |   |   |   | 54,905 |   |   |   | 32,662 |   |   |   | 81,800 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other commercial commitments        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating lease commitments         |   |                    | 363,974 |   |   |   | 13,909 |   |   |   | 26,593 |   |   |   | 26,047 |   |   |   | 297,425 |   |
| Capital commitments                 |   |                    | 241,181 |   |   |   | 138,795 |   |   |   | 102,386 |   |   |   | - |   |   |   | - |   |
| Exploration and production licenses |   |                    | 1,356   |   |   |   | 312 |   |   |   | 192 |   |   |   | 41 |   |   |   | 811 |   |
| Guarantees(2)                       |   |                    | 5,720   |   |   |   | 5,720 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total commercial commitments        |   |                    | 612,231 |   |   |   | 158,736 |   |   |   | 129,171 |   |   |   | 26,088 |   |   |   | 298,236 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (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, 2014, 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, 2014, the maximum amount of potential future payments under the guarantees was RMB 5.72 billion.  See Note 30 to the consolidated financial statements for further information of the guarantees. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | In addition to these amounts, we have certain obligations that are not contractually fixed as to timing and amount, including obligations associated with decommissioning and restoration. See Note 27 to our consolidated financial statements for further information of the obligations. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       |   | 2012                                  |   |   | 2013    |   |   | 2014   |   |   | Total   |   |
|----------------------------|--------|---------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
|                       |   | RMB                                   |   |   | Percent |   |   | RMB    |   |   | Percent |   |   | RMB |   |   | Percent |   |   | RMB |   |   | Percent |   |
|                       |   | (in billions, except percentage data) |   |
| Exploration and production |   |                                  | 79.07  |   |    |   | 46.80  | %      |   |   | 105.31  |   |   |   | 56.88 | % |   |   | 80.20 |   |   |   | 51.86 | % |   |   | 264.58 |   |   |   | 52.01 | % |
| Refining                   |   |                                  | 32.16  |   |    |   | 19.03  | %      |   |   | 26.06   |   |   |   | 14.08 | % |   |   | 27.96 |   |   |   | 18.08 | % |   |   | 86.18 |   |   |   | 16.94 | % |
| Marketing and distribution |   |                                  | 31.72  |   |    |   | 18.77  | %      |   |   | 29.49   |   |   |   | 15.93 | % |   |   | 26.99 |   |   |   | 17.45 | % |   |   | 88.20 |   |   |   | 17.33 | % |
| Chemicals                  |   |                                  | 23.62  |   |    |   | 13.98  | %      |   |   | 19.19   |   |   |   | 10.37 | % |   |   | 15.85 |   |   |   | 10.25 | % |   |   | 58.66 |   |   |   | 11.53 | % |
| Corporate and others       |   |                                  | 2.40   |   |    |   | 1.42   | %      |   |   | 5.08    |   |   |   | 2.74 | % |   |   | 3.65 |   |   |   | 2.36 | % |   |   | 11.13 |   |   |   | 2.19 | % |
| Capital Expenditure        |   |                                  | 168.97 |   |    |   | 100.00 | %      |   |   | 185.13  |   |   |   | 100.00 | % |   |   | 154.64 |   |   |   | 100.00 | % |   |   | 508.74 |   |   |   | 100.00 | % |
|                       |   |                                  |   |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | · | Exploration and production. RMB 80.20 billion was used in exploration and production segment to support the development of Jiyang Depression, Sichuan Basin, Tahe oilfield and Ordos Basin, construction of LNG and long-distance oil and gas pipelines in Shandong and Guangxi and the oversea projects. The production capacity of newly-built crude oil was 4.36 million tonnes per annum, and the production capacity of newly-built natural gas was 5.9 billion cubic meters per annum. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Refining. RMB 27.96 billion was used in our refining segment for completion of revamping and oil product quality upgrading projects in Shijiazhuang, Yangtze, Tahe and Jiujiang, as well as our  acquisition of 37.5% interest in YASREF through acquiring COOP from Sinopec Group Company.  We added a refining capacity of 9.5 million tonnes per year in 2014. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Marketing and distribution. RMB 26.99 billion was used in this segment to build and renovate service stations and to construct oil product pipelines and depots. We added 556 service stations in 2014. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Chemicals. RMB 15.85 billion was spent in this segment for construction of the coal chemical plant at Sinopec Great Wall Energy and Chemical Industry (Ningxia) Company Ltd. and the Qilu acrylonitrile project. We added a processing capacity of 190,000 tonnes per year for ethylene and 600,000 tonnes per year for synthetic resin in 2014. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Corporate and others. RMB 3.65 billion was used for research and development and construction of information systems. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Exploration and production. The planned capital expenditure in 2015 for this segment is approximately RMB 68.2 billion. We expect to focus on the exploration and production of Fuling shale gas project. We |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Refining. The planned capital expenditure in 2015 for this segment is RMB 24.0 billion. We expect to focus on oil product quality upgrade projects and renovation projects including Qilu and Jiujiang. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Marketing and distribution. The planned capital expenditure in 2015 for this segment is RMB 22.6 billion. We expect to focus on the construction and renovation of services stations, further construction of oil product pipelines, optimization of layout of oil houses, development of ancillary projects for non-oil businesses and improvement of our storage and transportation facilities. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Chemicals. The planned capital expenditure in 2015 for this segment is RMB 15.1 billion. We expect to focus on construction of Jinling propylene oxide and LPG utilization project and the phase II of Hainan PX project. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Corporate and others. The planned capital expenditure in 2015 for this segment is RMB 6.0 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.       |
|----------------|--------|-----|--------|------------------------------------|
| Fu Chengyu     |   | 63  |   | Chairman                           |
| Wang Tianpu    |   | 52  |   | Vice Chairman                      |
| Zhang Yaocang  |   | 61  |   | Vice Chairman                      |
| Li Chunguang   |   | 59  |   | Director, President                |
| Zhang Jianhua  |   | 50  |   | Director, Senior Vice President    |
| Wang Zhigang   |   | 57  |   | Director, Senior Vice President    |
| Cao Yaofeng    |   | 61  |   | Director                           |
| Dai Houliang   |   | 51  |   | Director, Senior Vice President    |
| Liu Yun        |   | 58  |   | Director                           |
| Chen Xiaojin   |   | 70  |   | Independent Non-executive Director |
| Ma Weihua      |   | 66  |   | Independent Non-executive Director |
| Jiang Xiaoming |   | 61  |   | Independent Non-executive Director |
| Andrew Y. Yan  |   | 57  |   | Independent Non-executive Director |
| Bao Guoming    |   | 63  |   | Independent Non-executive Director |
| Cai Xiyou(1)   |   | 53  |   | Director, Senior Vice President    |

| (1) | In October 2014, Mr. Cai Xiyou tendered his resignation as the director, member of the Strategy Committee of the Board and Senior Vice President of Sinopec Corp. due to work-related arrangement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Name           |   | Age |   | Position with the Company       |
|----------------|--------|-----|--------|--------------------------------------|
| Xu Bin         |   | 58  |   | Chairman of the Board of Supervisors |
| Geng Limin     |   | 60  |   | Supervisor                           |
| Li Xinjian     |   | 61  |   | Supervisor                           |
| Zou Huiping    |   | 54  |   | Supervisor                           |
| Kang Mingde    |   | 64  |   | Independent Supervisor               |
| Zhou Shiliang  |   | 57  |   | Employee Representative Supervisor   |
| Chen Mingzheng |   | 57  |   | Employee Representative Supervisor   |
| Jiang Zhenying |   | 50  |   | Employee Representative Supervisor   |
| Yu Renming     |   | 51  |   | Employee Representative Supervisor   |

----

----

| Name              |   | Age |   | Positions with Sinopec Corp.                       |
|-------------------|--------|-----|--------|----------------------------------------------------|
| Zhang Haichao     |   | 57  |   | Vice President                                     |
| Jiao Fangzheng    |   | 52  |   | Vice President                                     |
| Wang Xinhua       |   | 59  |   | Chief Financial Officer                            |
| Lei Dianwu        |   | 52  |   | Vice President                                     |
| Ling Yiqun        |   | 52  |   | Vice President                                     |
| Jiang Zhenghong   |   | 53  |   | Vice President                                     |
| Chang Zhenyong(1) |   | 56  |   | Vice President                                     |
| Huang Wensheng(1) |   | 48  |   | Secretary of the Board of Directors/Vice President |
| Wang Yongjian(2)  |   | 54  |   | Vice President                                     |

----

----

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

| Name           |   | Position with the Company            |   | Remuneration paid by the Company in 2014 |
|----------------|--------|--------------------------------------|--------|------------------------------------------|
|           |   |                                 |   | (RMB in thousands)                       |
| Directors      |   |                                 |   |                                     |
| Fu Chengyu     |   | Chairman                             |   | −                                  |
| Wang Tianpu    |   | Vice Chairman                        |   | −                                  |
| Zhang Yaocang  |   | Vice Chairman                        |   | −                                  |
| Li Chunguang   |   | Director, President                  |   | 972.9                                    |
| Zhang Jianhua  |   | Director, Senior Vice President      |   | 974.9                                    |
| Wang Zhigang   |   | Director, Senior Vice President      |   | 974.9                                    |
| Cai Xiyou(1)   |   | Director, Senior Vice President      |   | 867.0                                    |
| Cao Yaofeng    |   | Director                             |   | −                                  |
| Dai Houliang   |   | Director, Senior Vice President      |   | 969.1                                    |
| Liu Yun        |   | Director                             |   | −                                  |
| Chen Xiaojin   |   | Independent Non-executive Director   |   | 300.0                                    |
| Ma Weihua      |   | Independent Non-executive Director   |   | 300.0                                    |
| Jiang Xiaoming |   | Independent Non-executive Director   |   | 300.0                                    |
| Andrew Y. Yan  |   | Independent Non-executive Director   |   | 300.0                                    |
| Bao Guoming    |   | Independent Non-executive Director   |   | 300.0                                    |
|           |   |                                 |   |                                     |
| Supervisors    |   |                                 |   |                                     |
| Xu Bin         |   | Chairman of the Board of Supervisors |   | −                                  |
| Geng Limin     |   | Supervisor                           |   | −                                  |
| Li Xinjian     |   | Supervisor                           |   | −                                  |
| Zou Huiping    |   | Supervisor                           |   | 552.7                                    |
| Kang Mingde    |   | Independent Supervisor               |   | −                                  |
| Zhou Shiliang  |   | Employee Representative Supervisor   |   | −                                  |
| Chen Mingzheng |   | Employee Representative Supervisor   |   | 559.0                                    |
| Jiang Zhenying |   | Employee Representative Supervisor   |   | 539.5                                    |
| Yu Renming     |   | Employee Representative Supervisor   |   | 598.2                                    |

----

| Other Executive officers |   |                                               |   |     |
|--------------------------|--------|----------------------------------------------------|--------|----------|
| Zhang Haichao            |   | Vice President                                     |   | 685.1    |
| Jiao Fangzheng           |   | Vice President                                     |   | 685.1    |
| Wang Xinhua              |   | Chief Financial Officer                            |   | 640.8    |
| Lei Dianwu               |   | Vice President                                     |   | 633.8    |
| Ling Yiqun               |   | Vice President                                     |   | 633.8    |
| Jiang Zhenghong          |   | Vice President                                     |   | 645.0    |
| Chang Zhenyong(2)        |   | Vice President                                     |   | 295.0(3) |
| Huang Wensheng(2)        |   | Secretary of the Board of Directors/Vice President |   | 560.5    |

| (1) | In October 2014, Mr. Cai Xiyou tendered his resignation as Director, member of the Strategy Committee of the Board and Senior Vice President of Sinopec Corp. due to new working arrangement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | In May 2014, Mr. Chang Zhenyong and Mr. Huang Wensheng were appointed as Vice Presidents. |
|-----|-------------------------------------------------------------------------------------------|

| (3) | Remuneration for Mr. Chang Zhenyong reflected the amount he received after being appointed as Vice President. |
|-----|---------------------------------------------------------------------------------------------------------------|

|   | 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 scheme in respect of the remuneration of directors, supervisors and executive officers, and make necessary suggestions. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| By Segment                 |   | Number of Employees |   | Percentage of Total Number of Employees (%) |
|----------------------------|--------|---------------------|--------|---------------------------------------------|
| Exploration and production |   | 144,103             |   | 40                                          |
| Refining                   |   | 78,725              |   | 22                                          |
| Marketing and distribution |   | 57,256              |   | 16                                          |
| Chemicals                  |   | 67,017              |   | 19                                          |
| Corporate and others       |   | 11,470              |   | 3                                           |
| Total                      |   | 358,571             |   | 100                                         |
|                       |   |                |   |                                        |

| By Employee’s Scope of Work |   | Number of Employees |   | Percentage of Total Number of Employees (%) |
|-----------------------------------|--------|---------------------|--------|---------------------------------------------|
| Production                        |   | 178,875             |   | 50                                          |
| Sales                             |   | 49,670              |   | 14                                          |
| Technical                         |   | 53,066              |   | 15                                          |
| Finance                           |   | 9,628               |   | 2                                           |
| Administration                    |   | 2,868               |   | 1                                           |
| Others                            |   | 64,464              |   | 18                                          |
| Total                             |   | 358,571             |   | 100                                         |
|                              |   |                |   |                                        |

| By Education                                            |   | Number of Employees |   | Percentage of Total Number of Employees (%) |
|---------------------------------------------------------|--------|---------------------|--------|---------------------------------------------|
| Master’s degree and above                         |   | 13,919              |   | 4                                           |
| University                                              |   | 92,670              |   | 26                                          |
| Junior college                                          |   | 79,615              |   | 22                                          |
| Technical secondary school                              |   | 27,399              |   | 8                                           |
| Senior high school and technical school degree or below |   | 144,968             |   | 40                                          |
| Total                                                   |   | 358,571             |   | 100                                         |
|                                                    |   |                |   |                                        |

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

----

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

|   | A. | MAJOR SHAREHOLDERS |
|--------|----|--------------------|

| Shareholder           |   | Number of Shares Owned (in millions) |   | Percentage of Ownership (%) |
|-----------------------|--------|--------------------------------------|--------|-----------------------------|
| Sinopec Group Company |   | 85,720,671,101(1)                    |   | 70.8(1)                     |

|   | 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 |
| April 2015 (as of April 2, 2015) |           | 6.27                            |                    | 6.22                        |                | 80.60                       |   | 80.00 |   | 6.56 |   | 6.42 |
|                             | Past 6 months  |                            | (HK dollar per H share) |                        | (US dollar per ADS) |                        | (RMB per A share) |
| 2015                             |           | March                           |                    | 6.50                        |                | 6.01                        |   | 83.68 |   | 76.93 |   | 6.49 |   | 5.95 |
| 2015                             |           | February                        |                    | 6.53                        |                | 6.07                        |   | 83.80 |   | 78.41 |   | 6.32 |   | 5.68 |
| 2015                             |           | January                         |                    | 6.36                        |                | 6.06                        |   | 81.91 |   | 79.04 |   | 7.18 |   | 6.03 |
| 2014                             |           | December                        |                    | 6.59                        |                | 5.93                        |   | 85.60 |   | 76.12 |   | 6.56 |   | 5.41 |
| 2014                             |           | November                        |                    | 6.72                        |                | 6.17                        |   | 86.98 |   | 80.15 |   | 5.39 |   | 5.08 |
| 2014                             |           | October                         |                    | 6.80                        |                | 6.51                        |   | 87.79 |   | 84.26 |   | 5.30 |   | 5.02 |
|                             |           |                            |                    |                        |                |                        |   |   |   |   |   |   |   |   |
|                             | Quarterly Data |                            |                    |                        |                |                        |   |   |   |   |   |   |   |
| 2015                             |           | First Quarter                   |                    | 6.53                        |                | 6.01                        |   | 83.80 |   | 76.93 |   | 7.18 |   | 5.68 |
| 2014                             |           | Fourth Quarter                  |                    | 6.80                        |                | 5.93                        |   | 87.79 |   | 76.12 |   | 6.56 |   | 5.02 |
|                             |           | Third Quarter                   |                    | 8.18                        |                | 6.80                        |   | 105.28 |   | 87.30 |   | 5.74 |   | 4.89 |
|                             |           | Second Quarter                  |                    | 7.49                        |                | 6.64                        |   | 97.43 |   | 86.45 |   | 5.44 |   | 4.49 |
|                             |           | First Quarter                   |                    | 7.06                        |                | 5.74                        |   | 90.21 |   | 74.53 |   | 5.41 |   | 4.38 |
| 2013                             |           | Fourth Quarter                  |                    | 7.01                        |                | 5.97                        |   | 90.15 |   | 76.64 |   | 5.05 |   | 4.27 |
|                             |           | Third Quarter                   |                    | 6.25                        |                | 5.12                        |   | 80.89 |   | 67.42 |   | 4.69 |   | 4.14 |
|                             |           | Second Quarter                  |                    | 7.03                        |                | 5.08                        |   | 90.19 |   | 65.95 |   | 5.67 |   | 4.10 |
|                             |           | First Quarter                   |                    | 7.26                        |                | 6.62                        |   | 94.36 |   | 85.00 |   | 5.94 |   | 5.20 |
|                             |           |                            |                    |                        |                |                        |   |   |   |   |   |   |   |   |
|                             | Annual Data    |                            |                    |                        |                |                        |   |   |   |   |   |   |   |
| 2014                             |           |                            |                    | 8.18                        |                | 5.74                        |   | 105.28 |   | 74.53 |   | 6.56 |   | 4.38 |
| 2013                             |           |                            |                    | 7.26                        |                | 5.08                        |   | 94.36 |   | 65.95 |   | 5.94 |   | 4.10 |
| 2012                             |           |                            |                    | 9.63                        |                | 6.43                        |   | 124.95 |   | 82.69 |   | 7.86 |   | 5.80 |
| 2011                             |           |                            |                    | 8.75                        |                | 6.45                        |   | 111.89 |   | 83.21 |   | 9.27 |   | 6.86 |
| 2010                             |           |                            |                    | 7.94                        |                | 5.75                        |   | 102.69 |   | 73.80 |   | 13.90 |   | 7.77 |

| 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 shares upon our 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 thereof or the District of Columbia; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | an estate the income of which is includible in gross income for United States federal income tax purposes regardless of its source; or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a trust (a) 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 (b) a trust that has otherwise 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 |
|----------|------------------------------------------------------------|

----

|                                      |   | As of December 31, 2014 |    |
|-------------------------------------------|--------|-------------------------|---------|
|                                      |   | Expected Maturity Date  |    |   | Total carrying amount |   |   | Fair value |   |
|                                      |   | 2015                    |    |   | 2016 |   |   | 2017 |   |   | 2018 |   |   | 2019 |   |   | Thereafter |   |   |   |   |   |   |   |
| Assets                                    |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalent                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US Dollar                              |   |                    | 1,998   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,998 |   |   |   | 1,998 |   |
| In HK Dollar                              |   |                    | 55      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 55 |   |   |   | 55 |   |
| In Japanese Yen                           |   |                    | 7       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7 |   |   |   | 7 |   |
| In Euro                                   |   |                    | 21      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21 |   |   |   | 21 |   |
| Others                                    |   |                    | 65      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 65 |   |   |   | 65 |   |
| Time deposits with financial institutions |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US Dollar                              |   |                    | 613     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 613 |   |   |   | 613 |   |
| Liabilities                               |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debts in US Dollar                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 7,394   |   |   |   | 4,625 |   |   |   | 37 |   |   |   | 6,107 |   |   |   | 23 |   |   |   | 10,932 |   |   |   | 29,118 |   |   |   | 28,992 |   |
| Average interest rate                     |   |                    | 0.9%    |   |   |   | 1.3% |   |   |   | 1.4% |   |   |   | 2.1% |   |   |   | 1.5% |   |   |   | 3.5% |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | 126,581 |   |   |   | 612 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 127,193 |   |   |   | 127,193 |   |
| Average interest rate(1)                  |   |                    | 1.3%    |   |   |   | 1.8% |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |
| Debts in Japanese Yen                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 54      |   |   |   | 54 |   |   |   | 54 |   |   |   | 54 |   |   |   | 54 |   |   |   | 175 |   |   |   | 445 |   |   |   | 492 |   |
| Average interest rate                     |   |                    | 2.6%    |   |   |   | 2.6% |   |   |   | 2.6% |   |   |   | 2.6% |   |   |   | 2.6% |   |   |   | 2.6% |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Average interest rate(1)                  |   |                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |
| Debts in HK Dollar                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 5       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5 |   |   |   | 5 |   |
| Average interest rate                     |   |                    | 1.8%    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Average interest rate(1)                  |   |                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |
| Debts in Euro                             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 10      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10 |   |   |   | 10 |   |
| Average interest rate                     |   |                    | 3.0%    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | 429     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 429 |   |   |   | 429 |   |
| Average interest rate(1)                  |   |                    | 1.2%    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |

----

|                                      |   | As of December 31, 2013 |   |
|-------------------------------------------|--------|-------------------------|--------|
|                                      |   | Expected Maturity Date  |   |   | Total carrying amount |   |   | Fair value |   |
|                                      |   | 2014                    |   |   | 2015 |   |   | 2016 |   |   | 2017 |   |   | 2018 |   |   | Thereafter |   |   |   |   |   |   |   |
| Assets                                    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalent                  |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US Dollar                              |   |                    | 2,868  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,868 |   |   |   | 2,868 |   |
| In HK Dollar                              |   |                    | 844    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 844 |   |   |   | 844 |   |
| In Japanese Yen                           |   |                    | 9      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9 |   |   |   | 9 |   |
| In Euro                                   |   |                    | 82     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 82 |   |   |   | 82 |   |
| Others                                    |   |                    | 28     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 28 |   |   |   | 28 |   |
| Time deposits with financial institutions |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US Dollar                              |   |                    | 3      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3 |   |   |   | 3 |   |
| Liabilities                               |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debts in US Dollar                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 26,655 |   |   |   | 51 |   |   |   | 4,594 |   |   |   | 37 |   |   |   | 6,074 |   |   |   | 10,670 |   |   |   | 48,081 |   |   |   | 50,726 |   |
| Average interest rate                     |   |                    | 1.6%   |   |   |   | 1.4% |   |   |   | 1.3% |   |   |   | 1.4% |   |   |   | 1.9% |   |   |   | 3.4% |   |   |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | 54,918 |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 54,923 |   |   |   | 54,926 |   |
| Average interest rate(2)                  |   |                    | 1.1%   |   |   |   | 2.3% |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in Japanese Yen                     |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 60     |   |   |   | 60 |   |   |   | 60 |   |   |   | 60 |   |   |   | 60 |   |   |   | 261 |   |   |   | 561 |   |   |   | 625 |   |
| Average interest rate                     |   |                    | 2.6%   |   |   |   | 2.6% |   |   |   | 2.6% |   |   |   | 2.6% |   |   |   | 2.6% |   |   |   | 2.6% |   |   |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Average interest rate(2)                  |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in HK Dollar                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 10,953 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,953 |   |   |   | 10,953 |   |
| Average interest rate                     |   |                    | 4.2%   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Average interest rate(2)                  |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |

| (2) | The average interest rates for variable rate debts are calculated based on the rates reported as of December 31, 2013. |
|-----|------------------------------------------------------------------------------------------------------------------------|

|                     |   | As of December 31, 2014 |   |
|--------------------------|--------|-------------------------|--------|
|                     |   | Expected Maturity Date  |   | Total carrying amount(2) |   |   | Fair value |   |
|                     |   | 2015                    |   | 2016 |   |   | 2017 |   | 2018 |   |   | 2019 |   | Thereafter |   |   |   |   |   |   |
| Assets                   |   |
| Cash and cash equivalent |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In RMB                   |   |                    | 7,209  |   | - |   |   | - |   | - |   |   | - |   | - |   |   | 7,209 |   |   |   | 7,209 |   |
| In US Dollar             |   |                    | 1,998  |   | - |   |   | - |   | - |   |   | - |   | - |   |   | 1,998 |   |   |   | 1,998 |   |
| In HK Dollar             |   |                    | 55     |   | - |   |   | - |   | - |   |   | - |   | - |   |   | 55 |   |   |   | 55 |   |
| In Japanese Yen          |   |                    | 7      |   | - |   |   | - |   | - |   |   | - |   | - |   |   | 7 |   |   |   | 7 |   |
| In Euro                  |   |                    | 21     |   | - |   |   | - |   | - |   |   | - |   | - |   |   | 21 |   |   |   | 21 |   |
| Others                   |   |                    | 65     |   | - |   |   | - |   | - |   |   | - |   | - |   |   | 65 |   |   |   | 65 |   |

----

| Time deposits with financial institutions |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |     |    |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|---------|
| In Renminbi                               |   |   | 132     |   |   | -      |   |   | -      |   |   | -      |   |   | -      |   |   | -      |   |   |   | 132    |   |   |   | 132      |    |
| In US Dollar                              |   |   | 613     |   |   | -      |   |   | -      |   |   | -      |   |   | -      |   |   | -      |   |   |   | 613    |   |   |   | 613      |    |
| Liabilities                               |   |
| Debts in RMB                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |     |    |
| Fixed rate                                |   |   | 23,461  |   |   |   | 1,275  |   |   |   | 46,281 |   |   |   | 2,014  |   |   |   | 4,259  |   |   |   | 52,204 |   |   |     | 129,494 |   |   |   | 125,305 |   |
| Average interest rate                     |   |   | 4.2%    |   |   |   | 4.7%   |   |   |   | 3.5%   |   |   |   | 3.1%   |   |   |   | 3.1%   |   |   |   | 1.4%   |   |   |   |    |   |   |   |
| Variable rate                             |   |   | 20,215  |   |   |   | 6,958  |   |   |   | 1,050  |   |   |   | 344    |   |   |   | 5,000  |   |   |   | 8,819  |   |   |     | 42,386  |   |   |   | 42,386 |   |
| Average interest rate(1)                  |   |   | 3.9%    |   |   |   | 5.6%   |   |   |   | 5.6%   |   |   |   | 4.2%   |   |   |   | 5.2%   |   |   |   | 6.8%   |   |   |   |    |   |   |   |
| Debts in US Dollar                        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |     |    |   |   |   |   |   |
| Fixed rate                                |   |   | 7,394   |   |   |   | 4,625  |   |   |   | 37     |   |   |   | 6,107  |   |   |   | 23     |   |   |   | 10,932 |   |   |     | 29,118  |   |   |   | 28,992 |   |
| Average interest rate                     |   |   | 0.9%    |   |   |   | 1.3%   |   |   |   | 1.4%   |   |   |   | 2.1%   |   |   |   | 1.5%   |   |   |   | 3.5%   |   |   |   |    |   |   |   |
| Variable rate                             |   |   | 126,581 |   |   |   | 612    |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |     | 127,193 |   |   |   | 127,193 |   |
| Average interest rate(1)                  |   |   | 1.3%    |   |   |   | 1.8%   |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |    |   |   |   |
| Debts in Japanese Yen                     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |     |    |   |   |   |   |   |
| Fixed rate                                |   |   | 54      |   |   |   | 54     |   |   |   | 54     |   |   |   | 54     |   |   |   | 54     |   |   |   | 175    |   |   |     | 445     |   |   |   | 492 |   |
| Average interest rate                     |   |   | 2.6%    |   |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   |    |   |   |   |
| Variable rate                             |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |     |    |   |   |   |   |   |
| Average interest rate(1)                  |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |     |    |   |   |   |   |   |
| Debts in HK Dollar                        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |     |    |   |   |   |   |   |
| Fixed rate                                |   |   | 5       |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |     | 5       |   |   |   | 5 |   |
| Average interest rate                     |   |   | 1.8%    |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |    |   |   |   |
| Variable rate                             |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |     |    |   |   |   |   |   |
| Average interest rate(1)                  |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |     |    |   |   |   |   |   |
| Debts in Euro                             |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |     |    |   |   |   |   |   |
| Fixed rate                                |   |   | 10      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |     | 10      |   |   |   | 10 |   |
| Average interest rate                     |   |   | 3.0%    |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |    |   |   |   |
| Variable rate                             |   |   | 429     |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |     | 429     |   |   |   | 429 |   |
| Average interest rate(1)                  |   |   | 1.2%    |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |    |   |   |   |

| (1) | The average interest rates for variable rate debts are calculated based on the rates reported as of December 31, 2014. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (2) | Carrying amounts are used for loans from Sinopec Group Company and its affiliates as it is not practicable to estimate their fair values because the cost of obtaining discount and borrowing rates for comparable borrowings would be excessive. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | As of December 31, 2013 |   |
|-------------------------------------------|--------|-------------------------|--------|
|                                      |   | Expected Maturity Date  |   |   | Total carrying amount(4) |   |   | Fair value |   |
|                                      |   | 2014                    |   |   | 2015 |   |   | 2016 |   |   | 2017 |   |   | 2018 |   |   | Thereafter |   |   |   |   |   |   |   |
| Assets                                    |   |
| Cash and cash equivalent                  |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In RMB                                    |   |                    | 11,215 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11,215 |   |   |   | 11,215 |   |
| In US Dollar                              |   |                    | 2,868  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,868 |   |   |   | 2,868 |   |
| In HK Dollar                              |   |                    | 844    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 844 |   |   |   | 844 |   |
| In Japanese Yen                           |   |                    | 9      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9 |   |   |   | 9 |   |
| In Euro                                   |   |                    | 82     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 82 |   |   |   | 82 |   |
| Others                                    |   |                    | 28     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 28 |   |   |   | 28 |   |
| Time deposits with financial institutions |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In RMB                                    |   |                    | 52     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 52 |   |   |   | 5 |   |
| In US Dollar                              |   |                    | 3      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3 |   |   |   | 3 |   |
| Liabilities                               |   |
| Debts in RMB                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 63,617 |   |   |   | 11,238 |   |   |   | - |   |   |   | 50,961 |   |   |   | 2,293 |   |   |   | 51,847 |   |   |   | 179,956 |   |   |   | 173,699 |   |
| Average interest rate                     |   |                    | 2.3%   |   |   |   | 3.9% |   |   |   | - |   |   |   | 3.3% |   |   |   | 3.4% |   |   |   | 1.4% |   |   |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | 7,668  |   |   |   | 160 |   |   |   | 6,599 |   |   |   | 454 |   |   |   | 105 |   |   |   | - |   |   |   | 14,986 |   |   |   | 14,721 |   |
| Average interest rate(3)                  |   |                    | 5.1%   |   |   |   | 6.3% |   |   |   | 5.6% |   |   |   | 5.8% |   |   |   | 6.4% |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Debts in US Dollar                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                                |   |                    | 26,655 |   |   |   | 51 |   |   |   | 4,594 |   |   |   | 37 |   |   |   | 6,074 |   |   |   | 10,670 |   |   |   | 48,081 |   |   |   | 50,726 |   |
| Average interest rate                     |   |                    | 1.6%   |   |   |   | 1.4% |   |   |   | 1.3% |   |   |   | 1.4% |   |   |   | 1.9% |   |   |   | 3.4% |   |   |   |   |   |   |   |   |   |
| Variable rate                             |   |                    | 54,918 |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 54,923 |   |   |   | 54,926 |   |
| Average interest rate(3)                  |   |                    | 1.1%   |   |   |   | 2.3% |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |

----

| Debts in Japanese Yen    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fixed rate               |   |   | 60     |   |   |   | 60     |   |   |   | 60     |   |   |   | 60     |   |   |   | 60     |   |   |   | 261    |   |   |   | 561    |   |   |   | 625    |   |
| Average interest rate    |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   | 2.6%   |   |   |   |   |   |   |   |   |   |
| Variable rate            |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |   |   |   |   |   |   |
| Average interest rate(3) |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |   |   |   |   |   |   |
| Debts in HK Dollar       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate               |   |   | 10,953 |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 10,953 |   |   |   | 10,953 |   |
| Average interest rate    |   |   | 4.2%   |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |   |   |   |   |   |   |
| Variable rate            |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |   |   |   |   |   |   |
| Average interest rate(3) |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   |   |   |   |   |   |   |

| (3) | The average interest rates for variable rate debts are calculated based on the rates reported as of December 31, 2013. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (4) | Carrying amounts are used for loans from Sinopec Group Company and its affiliates as it is not practicable to estimate their fair values because the cost of obtaining discount and borrowing rates for comparable borrowings would be excessive. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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$116,448.58 |
|--------|--------|--------------------------------------------------|

|   | · | reimbursement of data infrastructure fees: US$1,448.14 |
|--------|--------|--------------------------------------------------------|

|   | · | reimbursement of proxy procedure fees: US$76,225.59 |
|--------|--------|-----------------------------------------------------|

|   | · | reimbursement of investor relations expenses (including expenses related to non-deal road show, investor meeting and investor relations agency): US$290,643.99 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the accounting committee and accounting standard committee of public company: US$111,237.24 |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | Total: US$596,003.54 |
|--------|--------|----------------------|

| 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 |
|--------|--------|----------------|--------|--------------------|--------|----------|--------|------------|
| 2013   |   | RMB 67 million |   | —            |   | —  |   | —    |
| 2014   |   | RMB 87 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 the domestically listed companies in China and the Company’s governance practices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Corporate governance guidelines                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Listed companies must adopt and disclose corporate governance guidelines, involving director qualification standards, director responsibilities, directors’ access to management and independent advisors, director compensation, director continuing education, management succession, annual performance evaluation of the board of directors, etc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | PRC corporate governance rules promulgated by China Securities Regulatory Commission prescribe 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 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 an immediate family member is, or has been within the last three years, an executive officer of the listed company, or if the director has received, or has an immediate family member who has received, during any twelve-month period within the last three years, more than US$120,000 in direct compensation from the listed company, other than director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service). |   | 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. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 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 may, subject to  shareholders’ resolution, have a compensation and assessment committee composed entirely of directors, of whom the independent directors are the majority and act as the convener.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| The compensation committee must have a written charter that addresses, 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, either as a committee or together with the other independent directors (as directed by the board), 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. The compensation committee may, in its sole discretion, retain or consult a compensation consultant, independent legal counsel or other advisor. The compensation committee shall be directly responsible for the appointment, compensation and oversight of the work of such advisor. A listed company must provide for appropriate funding for payment of reasonable compensation to such advisor. The compensation committee may select such advisor to the compensation committee only after taking into consideration all factors relevant to that person’s independence from management. |   | 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. 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-3(b)(1) of the Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | It is stipulated in China that the board of directors of a listed company may, subject to shareholders’ resolution, establish an audit committee composed entirely of competent directors with expertise and business experience, of which the independent directors are the majority and act as the convener, and, at minimum, one independent director is an accounting professional.                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| The audit committee must have a written charter that specifies the purpose of the audit committee is, at minimum, 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. In addition, the written charter must 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. The written charter must also specify the duties and responsibilities of the audit committee, which, at a minimum, must include those set out in Rule 10A-3(b)(2), (3), (4) and (5) of the Exchange Act, as well as other duties and responsibilities such as to obtain and review a report by the independent auditor at least annually, meet to review and discuss the listed company’s annual audited financial statements and quarterly financial statements with management and independent auditor. |   | The responsibilities of the audit committee are similar to those stipulated by the NYSE rules. The board of directors shall evaluate the independence and performance of members of the audit committee periodically, and may replace any member who is no longer suitable for the position. The company shall disclose the performance of the audit committee in its annual report, including meetings convened by the audit committee. 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.                                                                                                                                                                                                                                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Each listed company must have an internal audit department.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | China has a similar regulatory provision, and the Company has an internal audit department.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Shareholder approval of equity compensation plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Shareholders must be given the opportunity to vote on all equity-compensation plans and material revisions thereto, except for, among others, plans that are made available to shareholders generally, such as typical dividend reinvestment plan and certain awards and plans in the context of mergers and acquisitions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 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. The Company has complied with the above mentioned laws or rules.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Code of ethics for directors, officers and employees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 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. Each code of business conduct and ethics must require that any waiver of the code for executive officers or directors may be made only by the board or a board committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 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. The Company also 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 listed company of NYSE corporate governance listing standards and he or she must promptly notify the NYSE in writing of any non-compliance with any applicable provisions of Section 303A. |   | No similar requirements. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|

| ITEM 16H. | MINE SAFETY DISCLOSURE |
|-----------|------------------------|

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

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

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

| 1 | 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). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.1 | Amendment to Articles of Association of China Petroleum & Chemical Corporation, adopted by the shareholders’ meeting on May 11, 2012 (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 April 11, 2013 (File Number: 001-15138). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Amendment to Articles of Association of China Petroleum & Chemical Corporation, adopted by the shareholders’ meeting on October 16, 2012 (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 11, 2013 (File Number: 001-15138). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | Amendment to Articles of Association of China Petroleum & Chemical Corporation, adopted by the shareholders’ meeting on May 29, 2013 (English translation); incorporated by reference to Exhibit 1.3 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 22, 2014 (File Number: 001-15138). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4* | Amendment to Articles of Association of China Petroleum & Chemical Corporation, adopted by the shareholders’ meeting on May 9, 2014 (English translation). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Forms of Director Service Contracts dated May 11, 2012 (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 11, 2013 (File Number: 001-15138). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Forms of Supervisor Service Contracts dated May 11, 2012 (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 11, 2013 (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 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). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.19.1 | Continuing Connected Transactions Second Supplemental Agreement between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated August 21, 2009 (English translation), incorporated by reference to Exhibit 4.21 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 30, 2010 (File Number: 001-15138). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.19.2 | Continuing Connected Transactions Third Supplemental Agreement between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated August 24, 2012 (English translation), incorporated by reference to Exhibit 4.19.2 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 11, 2013 (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). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.20.1 | Land Use Rights Leasing Agreement Third Amendment Memo between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated August 24, 2012 (English Translation), incorporated by reference to Exhibit 4.20.1 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 11, 2013 (File Number: 001-15138). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.21 | Non-Compete Agreement Between China Petrochemical Corporation and China Petroleum & Chemical Corporation dated June 3, 2000 and its related Undertakings (English translation), incorporated by reference to Exhibit 4.21 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on September 26, 2013 (File Number: 001-15138). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.21.1* | Undertakings from China Petrochemical Corporation Regarding Further Avoiding Competition with China Petroleum & Chemical Corporation dated April 28, 2014 (English translation). |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1* | 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). |
|-------|--------------------------------------------------------|

| 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). |
|------|------------------------------------------------------------------------------------|

| 15.1 | Letter from KPMG regarding Item 16F of this annual report, incorporated by reference to Exhibit 15.1 to our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 11, 2013 (File Number: 001-15138). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

----

|                                                                     |   | Page   |
|--------------------------------------------------------------------------|--------|--------|
|                                                                     |   |   |
| Reports of independent registered public accounting firms                |   | F-2    |
|                                                                     |   |   |
|                                                                     |   |   |
| Consolidated statement of income                                         |   | F-4    |
|                                                                     |   |   |
|                                                                     |   |   |
| Consolidated statement of comprehensive income                           |   | F-5    |
|                                                                     |   |   |
|                                                                     |   |   |
| Consolidated balance sheet                                               |   | F-6    |
|                                                                     |   |   |
|                                                                     |   |   |
| Consolidated statement of changes in equity                              |   | F-7    |
|                                                                     |   |   |
|                                                                     |   |   |
| Consolidated statement of cash flows                                     |   | F-10   |
|                                                                     |   |   |
|                                                                     |   |   |
| Notes to consolidated financial statements                               |   | F-12   |
|                                                                     |   |   |
|                                                                     |   |   |
| Supplemental information on oil and gas producing activities (unaudited) |   | F-70   |

----

----

----

|                                                                    |   |   |            |   | Years ended December 31, |      |
|-------------------------------------------------------------------------|--------|--------|-----------------|--------|--------------------------|-----------|
|                                                                    |   |   | Note            |   |                     | 2012      |   |   | 2013 |   |   | 2014 |   |
|                                                                    |   |   |            |   | RMB                      |      |   | RMB |   |   | RMB |   |
| Operating revenues                                                      |   |   |            |   |                     |      |   |   |   |   |   |   |
| Sales of goods                                                          |   |   |            |   |                     | 2,733,618 |   |   |   | 2,833,247 |   |   |   | 2,781,641 |   |
| Other operating revenues                                                |   |   | 3               |   |                     |      | 52,427 |   |   |   | 47,064 |   |   |   | 44,273 |   |
|                                                                    |   |   |            |   |                     |      | 2,786,045 |   |   |   | 2,880,311 |   |   |   | 2,825,914 |   |
|                                                                    |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                      |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Purchased crude oil, products and operating supplies and expenses       |   |   |            |   |                     |      | (2,301,199 | ) |   |   | (2,371,858 | ) |   |   | (2,334,399 | ) |
| Selling, general and administrative expenses                            |   |   | 4               |   |                     |      | (61,174 | ) |   |   | (69,928 | ) |   |   | (68,374 | ) |
| Depreciation, depletion and amortization                                |   |   |            |   |                     |      | (70,456 | ) |   |   | (81,265 | ) |   |   | (90,097 | ) |
| Exploration expenses, including dry holes                               |   |   |            |   |                     |      | (15,533 | ) |   |   | (12,573 | ) |   |   | (10,969 | ) |
| Personnel expenses                                                      |   |   | 5               |   |                     |      | (51,767 | ) |   |   | (55,353 | ) |   |   | (57,233 | ) |
| Taxes other than income tax                                             |   |   | 6               |   |                     |      | (188,483 | ) |   |   | (190,672 | ) |   |   | (191,202 | ) |
| Other operating income / (expenses), net                                |   |   | 7               |   |                     |      | 1,229 |   |   |   | (1,877 | ) |   |   | (153 | ) |
| Total operating expenses                                                |   |   |            |   |                     |      | (2,687,383 | ) |   |   | (2,783,526 | ) |   |   | (2,752,427 | ) |
| Operating income                                                        |   |   |            |   |                     |      | 98,662 |   |   |   | 96,785 |   |   |   | 73,487 |   |
|                                                                    |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Finance costs                                                           |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                        |   |   | 8               |   |                     |      | (11,217 | ) |   |   | (10,602 | ) |   |   | (11,218 | ) |
| Interest income                                                         |   |   |            |   |                     |      | 1,254 |   |   |   | 1,568 |   |   |   | 1,779 |   |
| (Loss) / gain on embedded derivative component of the convertible bonds |   |   | 24(iii) and (v) |   |                     |      | (62 | ) |   |   | 2,028 |   |   |   | (4,611 | ) |
| Net foreign currency exchange gains / (loss)                            |   |   |            |   |                     |      | 144 |   |   |   | 2,760 |   |   |   | (179 | ) |
| Net finance costs                                                       |   |   |            |   |                     |      | (9,881 | ) |   |   | (4,246 | ) |   |   | (14,229 | ) |
| Investment income                                                       |   |   |            |   |                     |      | 235 |   |   |   | 154 |   |   |   | 2,616 |   |
| Share of profits less losses from associates and joint ventures         |   |   |            |   |                     |      | 1,626 |   |   |   | 2,359 |   |   |   | 3,630 |   |
| Earnings before income tax                                              |   |   |            |   |                     |      | 90,642 |   |   |   | 95,052 |   |   |   | 65,504 |   |
| Tax expense                                                             |   |   | 9               |   |                     |      | (23,846 | ) |   |   | (24,763 | ) |   |   | (17,571 | ) |
| Net income                                                              |   |   |            |   |                     |      | 66,796 |   |   |   | 70,289 |   |   |   | 47,933 |   |
|                                                                    |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                        |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Owners of the Company                                                   |   |   |            |   |                     |      | 63,879 |   |   |   | 66,132 |   |   |   | 46,466 |   |
| Non-controlling interests                                               |   |   |            |   |                     |      | 2,917 |   |   |   | 4,157 |   |   |   | 1,467 |   |
| Net income                                                              |   |   |            |   |                     |      | 66,796 |   |   |   | 70,289 |   |   |   | 47,933 |   |
|                                                                    |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                                     |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                   |   |   | 11              |   |                     |      | 0.57 |   |   |   | 0.57 |   |   |   | 0.40 |   |
| Diluted                                                                 |   |   | 11              |   |                     |      | 0.55 |   |   |   | 0.53 |   |   |   | 0.40 |   |
|                                                                    |   |   |            |   |                     |      |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                        |   |   |   |   | Years ended December 31, |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------------|--------|
|                                                                                                        |   |   | Note   |   |                     | 2012   |   |   | 2013 |   |   | 2014 |   |
|                                                                                                        |   |   |   |   | RMB                      |   |   | RMB |   |   | RMB |   |
|                                                                                                        |   |   |   |   |                     |   |   |   |   |   |   |   |
| Net income                                                                                                  |   |   |   |   |                     | 66,796 |   |   |   | 70,289 |   |   |   | 47,933 |   |
|                                                                                                        |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income:                                                                                 |   |   | 10     |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Items that may be reclassified subsequently to profit or loss (after tax and reclassification adjustments): |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges                                                                                            |   |   |   |   |                     |   | (151 | ) |   |   | 604 |   |   |   | (4,485 | ) |
| Available-for-sale securities                                                                               |   |   |   |   |                     |   | 26 |   |   |   | 1,314 |   |   |   | (1,225 | ) |
| Share of other comprehensive income of associates and joint ventures                                        |   |   |   |   |                     |   | 80 |   |   |   | (297 | ) |   |   | (3,042 | ) |
| Foreign currency translation differences                                                                    |   |   |   |   |                     |   | (44 | ) |   |   | (689 | ) |   |   | (514 | ) |
| Total items that may be reclassified subsequently to profit or loss                                         |   |   |   |   |                     |   | (89 | ) |   |   | 932 |   |   |   | (9,266 | ) |
| Total other comprehensive income                                                                            |   |   |   |   |                     |   | (89 | ) |   |   | 932 |   |   |   | (9,266 | ) |
|                                                                                                        |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income for the year                                                                     |   |   |   |   |                     |   | 66,707 |   |   |   | 71,221 |   |   |   | 38,667 |   |
|                                                                                                        |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                                                            |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Owners of the Company                                                                                       |   |   |   |   |                     |   | 63,814 |   |   |   | 67,312 |   |   |   | 38,798 |   |
| Non-controlling interests                                                                                   |   |   |   |   |                     |   | 2,893 |   |   |   | 3,909 |   |   |   | (131 | ) |
| Total comprehensive income for the year                                                                     |   |   |   |   |                     |   | 66,707 |   |   |   | 71,221 |   |   |   | 38,667 |   |
|                                                                                                        |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                     |   |   |   |   | December 31, |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------------|--------|
|                                                     |   |   | Note   |   |         | 2013   |   |   | 2014 |   |
|                                                     |   |   |   |   | RMB          |   |   | RMB |   |
| ASSETS                                                   |   |   |   |   |         |   |   |   |   |
| Current assets                                           |   |   |   |   |         |   |   |   |   |
| Cash and cash equivalents                                |   |   |   |   |         | 15,046 |   |   |   | 9,355 |   |
| Time deposits with financial institutions                |   |   |   |   |         | 55     |   |   |   | 745 |   |
| Trade accounts receivable, net                           |   |   | 12     |   |         |   | 68,466 |   |   |   | 90,831 |   |
| Bills receivable                                         |   |   |   |   |         |   | 28,771 |   |   |   | 13,963 |   |
| Inventories                                              |   |   | 13     |   |         |   | 221,906 |   |   |   | 188,223 |   |
| Prepaid expenses and other current assets                |   |   | 14     |   |         |   | 38,766 |   |   |   | 57,027 |   |
| Total current assets                                     |   |   |   |   |         |   | 373,010 |   |   |   | 360,144 |   |
| Non-current assets                                       |   |   |   |   |         |   |   |   |   |   |   |   |
| Property, plant and equipment, net                       |   |   | 15     |   |         |   | 669,595 |   |   |   | 703,485 |   |
|  Construction in progress                           |   |   | 16     |   |         |   | 160,630 |   |   |   | 177,667 |   |
| Goodwill                                                 |   |   | 17     |   |         |   | 6,255 |   |   |   | 6,281 |   |
| Interest in associates                                   |   |   | 18     |   |         |   | 28,444 |   |   |   | 32,119 |   |
| Interest in joint ventures                               |   |   | 19     |   |         |   | 46,874 |   |   |   | 48,474 |   |
| Available-for-sale financial assets                      |   |   | 20     |   |         |   | 3,730 |   |   |   | 868 |   |
| Deferred tax assets                                      |   |   | 21     |   |         |   | 4,141 |   |   |   | 6,979 |   |
| Lease prepayments                                        |   |   | 22     |   |         |   | 43,270 |   |   |   | 49,136 |   |
| Long-term prepayments and other assets                   |   |   | 23     |   |         |   | 46,967 |   |   |   | 66,215 |   |
| Total non-current assets                                 |   |   |   |   |         |   | 1,009,906 |   |   |   | 1,091,224 |   |
| Total assets                                             |   |   |   |   |         |   | 1,382,916 |   |   |   | 1,451,368 |   |
| LIABILITIES AND EQUITY                                   |   |   |   |   |         |   |   |   |   |   |   |   |
| Current liabilities                                      |   |   |   |   |         |   |   |   |   |   |   |   |
| Short-term debts                                         |   |   | 24     |   |         |   | 109,806 |   |   |   | 75,183 |   |
| Loans from Sinopec Group Company and fellow subsidiaries |   |   | 24     |   |         |   | 54,064 |   |   |   | 102,965 |   |
| Trade accounts payable                                   |   |   | 25     |   |         |   | 202,724 |   |   |   | 198,366 |   |
| Bills payable                                            |   |   | 25     |   |         |   | 4,526 |   |   |   | 4,577 |   |
| Accrued expenses and other payables                      |   |   | 26     |   |         |   | 197,606 |   |   |   | 222,075 |   |
| Income tax payable                                       |   |   |   |   |         |   | 3,096 |   |   |   | 1,091 |   |
| Total current liabilities                                |   |   |   |   |         |   | 571,822 |   |   |   | 604,257 |   |
| Non-current liabilities                                  |   |   |   |   |         |   |   |   |   |   |   |   |
| Long-term debts                                          |   |   | 24     |   |         |   | 107,234 |   |   |   | 107,787 |   |
| Loans from Sinopec Group Company and fellow subsidiaries |   |   | 24     |   |         |   | 38,356 |   |   |   | 43,145 |   |
| Deferred tax liabilities                                 |   |   | 21     |   |         |   | 7,977 |   |   |   | 7,820 |   |
| Provisions                                               |   |   | 27     |   |         |   | 26,080 |   |   |   | 29,715 |   |
| Other long-term liabilities                              |   |   |   |   |         |   | 9,821 |   |   |   | 13,067 |   |
| Total non-current liabilities                            |   |   |   |   |         |   | 189,468 |   |   |   | 201,534 |   |
| Total liabilities                                        |   |   |   |   |         |   | 761,290 |   |   |   | 805,791 |   |
| Equity                                                   |   |   |   |   |         |   |   |   |   |   |   |   |
| Share capital                                            |   |   | 28     |   |         |   | 116,565 |   |   |   | 118,280 |   |
| Reserves                                                 |   |   | 29     |   |         |   | 452,238 |   |   |   | 474,761 |   |
| Total equity attributable to owners of the Company       |   |   |   |   |         |   | 568,803 |   |   |   | 593,041 |   |
| Non-controlling interests                                |   |   |   |   |         |   | 52,823 |   |   |   | 52,536 |   |
| Total equity                                             |   |   |   |   |         |   | 621,626 |   |   |   | 645,577 |   |
| Total liabilities and equity                             |   |   |   |   |         |   | 1,382,916 |   |   |   | 1,451,368 |   |
|                                                     |   |   |   |   |         |   |   |   |   |   |   |   |

----

|                                                                                   |   | Sharecapital |    |   | Capitalreserve |   |    | Sharepremium |   |   | Statutorysurplusreserve |   |   | Dis-cretionarysurplusreserve |    |   | Otherreserves |   |    | Retainedearnings |   |   | Total equity attributableto owners of the Company |   |   |  Non-controllinginterests |    |   | Totalequity |   |
|----------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------------|--------|---------|--------------|--------|--------|-------------------------|--------|--------|------------------------------|---------|--------|---------------|--------|---------|------------------|--------|--------|--------------------------------------------------------|--------|--------|--------------------------------|---------|--------|-------------|--------|
|                                                                                   |   | RMB          |    |   | RMB            |   |    | RMB          |   |   | RMB                     |   |   | RMB                          |    |   | RMB           |   |    | RMB              |   |   | RMB                                                    |   |   | RMB                            |    |   | RMB         |   |
|  Balance as of January 1, 2012                                                    |   |         | 86,702  |   |           |   | (33,208 | )            |   |   | 24,953                  |   |   |                         | 61,263  |   |          |   | 117,000 |             |   |   | 2,935                                                  |   |   |                           | 212,683 |   |        |   | 472,328 |   |   |   | 35,016 |   |   |   | 507,344 |   |
| Net income                                                                             |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | 63,879  |   |        |   | 63,879 |   |   |   | 2,917 |   |   |   | 66,796 |   |
| Other comprehensive income(Note 10)                                                    |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (65                                                    | )      |   |                           | — |   |        |   | (65 | ) |   |   | (24 | ) |   |   | (89 | ) |
| Total comprehensive income for the year                                                |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (65                                                    | )      |   |                           | 63,879  |   |        |   | 63,814 |   |   |   | 2,893 |   |   |   | 66,707 |   |
| Transactions with owners, recorded directly in equity:                                 |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                   |   |   |                           |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Contributions by and distributions to owners:                                          |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                   |   |   |                           |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of the 2011 Convertible Bonds (Note 24)                                     |   |         | 118     |   |           |   | — |         |   |   | 799                     |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |        |   | 917 |   |   |   | — |   |   |   | 917 |   |
| Final dividend for 2011                                                                |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | (17,364 | )      |        |   | (17,364 | ) |   |   | — |   |   |   | (17,364 | ) |
| Interim dividend for 2012                                                              |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | (8,682  | )      |        |   | (8,682 | ) |   |   | — |   |   |   | (8,682 | ) |
| Appropriation (Note 29 (c))                                                            |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | 6,340   |   |          |   | — |             |   |   | —                                                |   |   |                           | (6,340  | )      |        |   | — |   |   |   | — |   |   |   | — |   |
| Rights issue of shares by a subsidiary, net ofissuance costs (Note29(g))               |   |         | — |   |           |   | (18     | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |        |   | (18 | ) |   |   | 781 |   |   |   | 763 |   |
| Distribution to Sinopec Group Company                                                  |   |         | — |   |           |   | (2      | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |        |   | (2 | ) |   |   | — |   |   |   | (2 | ) |
| Distributions by subsidiaries to non-controlling interests, net of contributions       |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |        |   | — |   |   |   | (1,462 | ) |   |   | (1,462 | ) |
| Total contributions by and distributions to owners                                     |   |         | 118     |   |           |   | (20     | )            |   |   | 799                     |   |   |                         | 6,340   |   |          |   | — |             |   |   | —                                                |   |   |                           | (32,386 | )      |        |   | (25,149 | ) |   |   | (681 | ) |   |   | (25,830 | ) |
| Changes in ownership interests in subsidiaries that do not result in a loss of control |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                   |   |   |                           |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Acquisitions of non-controlling interests of subsidiaries                              |   |         | — |   |           |   | (79     | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |        |   | (79 | ) |   |   | (106 | ) |   |   | (185 | ) |
| Total transactions with owners                                                         |   |         | 118     |   |           |   | (99     | )            |   |   | 799                     |   |   |                         | 6,340   |   |          |   | — |             |   |   | —                                                |   |   |                           | (32,386 | )      |        |   | (25,228 | ) |   |   | (787 | ) |   |   | (26,015 | ) |
| Others (Note 29(g))                                                                    |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 435                                                    |   |   |                           | (435    | )      |        |   | — |   |   |   | — |   |   |   | — |   |
| Balance as of December 31, 2012                                                        |   |         | 86,820  |   |           |   | (33,307 | )            |   |   | 25,752                  |   |   |                         | 67,603  |   |          |   | 117,000 |             |   |   | 3,305                                                  |   |   |                           | 243,741 |   |        |   | 510,914 |   |   |   | 37,122 |   |   |   | 548,036 |   |
|                                                                                   |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                   |   |   |                           |    |   |        |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                         |   | Sharecapital |    |   | Capitalreserve |   |    | Sharepremium |   |   | Statutorysurplusreserve |   |   | Dis-cretionarysurplusreserve |    |   | Otherreserves |   |    | Retainedearnings |   |   | Total equity attributableto owners of the Company |   |   |  Non-controllinginterests |    |   | Total equity |   |
|----------------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------------|--------|---------|--------------|--------|--------|-------------------------|--------|--------|------------------------------|---------|--------|---------------|--------|---------|------------------|--------|--------|--------------------------------------------------------|--------|--------|--------------------------------|---------|--------|-------------------|--------|
|                                                                                         |   | RMB          |    |   | RMB            |   |    | RMB          |   |   | RMB                     |   |   | RMB                          |    |   | RMB           |   |    | RMB              |   |   | RMB                                                    |   |   | RMB                            |    |   | RMB               |   |
| Balance as of January 1, 2013                                                                |   |         | 86,820  |   |           |   | (33,307 | )            |   |   | 25,752                  |   |   |                         | 67,603  |   |          |   | 117,000 |             |   |   | 3,305                                                  |   |   |                           | 243,741 |   |              |   | 510,914 |   |   |   | 37,122 |   |   |   | 548,036 |   |
| Net income                                                                                   |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | 66,132  |   |              |   | 66,132 |   |   |   | 4,157 |   |   |   | 70,289 |   |
| Other comprehensive income (Note 10)                                                         |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 1,180                                                  |   |   |                           | — |   |              |   | 1,180 |   |   |   | (248 | ) |   |   | 932 |   |
| Total comprehensive income for the year                                                      |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | 1,180                                                  |   |   |                           | 66,132  |   |              |   | 67,312 |   |   |   | 3,909 |   |   |   | 71,221 |   |
| Transactions with owners, recorded directly in equity:                                       |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                   |   |   |                           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Contributions by and distributions to owners:                                                |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                   |   |   |                           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of the 2011 Convertible Bonds (Note 24)                                      |   |         | — |   |           |   | — |         |   |   | 1                       |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |              |   | 1 |   |   |   | — |   |   |   | 1 |   |
| Final dividend for 2012                                                                      |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | (17,933 | )      |              |   | (17,933 | ) |   |   | — |   |   |   | (17,933 | ) |
| Interim dividend for 2013                                                                    |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | (10,491 | )      |              |   | (10,491 | ) |   |   | — |   |   |   | (10,491 | ) |
| Appropriation (Note 29(c))                                                                   |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | 5,734   |   |          |   | — |             |   |   | —                                                |   |   |                           | (5,734  | )      |              |   | — |   |   |   | — |   |   |   | — |   |
| Rights issue of H shares, net of issuance costs (Note 24)                                    |   |         | 2,845   |   |           |   | — |         |   |   | 16,561                  |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |              |   | 19,406 |   |   |   | — |   |   |   | 19,406 |   |
| Contributions to subsidiaries from non-controlling interests                                 |   |         | — |   |           |   | 600     |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |              |   | 600 |   |   |   | 12,096 |   |   |   | 12,696 |   |
| Distributions to non-controlling interests                                                   |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |              |   | — |   |   |   | (1,261 | ) |   |   | (1,261 | ) |
| Total contributions by and distributions to owners                                           |   |         | 2,845   |   |           |   | 600     |         |   |   | 16,562                  |   |   |                         | 5,734   |   |          |   | — |             |   |   | —                                                |   |   |                           | (34,158 | )      |              |   | (8,417 | ) |   |   | 10,835 |   |   |   | 2,418 |   |
| Bonus issues (Note 28)                                                                       |   |         | 17,933  |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | (17,933 | )      |              |   | — |   |   |   | — |   |   |   | — |   |
| Capitalization (Note 28)                                                                     |   |         | 8,967   |   |           |   | — |         |   |   | (8,967                  | )      |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |              |   | — |   |   |   | — |   |   |   | — |   |
| Changes in ownership interests in subsidiaries that do not result in a loss of control:      |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                   |   |   |                           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-tradable shares reform                                                                   |   |         | — |   |           |   | (986    | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |              |   | (986 | ) |   |   | 986 |   |   |   | — |   |
| Acquisitions of non-controlling interests of subsidiaries                                    |   |         | — |   |           |   | (20     | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |              |   | (20 | ) |   |   | (29 | ) |   |   | (49 | ) |
| Total changes in ownership interests in subsidiaries that do not result in a loss of control |   |         | — |   |           |   | (1,006  | )            |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | —                                                |   |   |                           | — |   |              |   | (1,006 | ) |   |   | 957 |   |   |   | (49 | ) |
| Total transactions with owners                                                               |   |         | 29,745  |   |           |   | (406    | )            |   |   | 7,595                   |   |   |                         | 5,734   |   |          |   | — |             |   |   | —                                                |   |   |                           | (52,091 | )      |              |   | (9,423 | ) |   |   | 11,792 |   |   |   | 2,369 |   |
| Others (Note 29(g))                                                                          |   |         | — |   |           |   | — |         |   |   | —                 |   |   |                         | — |   |          |   | — |             |   |   | (1,994                                                 | )      |   |                           | 1,994   |   |              |   | — |   |   |   | — |   |   |   | — |   |
| Balance as of December 31, 2013                                                              |   |         | 116,565 |   |           |   | (33,713 | )            |   |   | 33,347                  |   |   |                         | 73,337  |   |          |   | 117,000 |             |   |   | 2,491                                                  |   |   |                           | 259,776 |   |              |   | 568,803 |   |   |   | 52,823 |   |   |   | 621,626 |   |
|                                                                                         |   |         |    |   |           |   |    |         |   |   |                    |   |   |                         |    |   |          |   |    |             |   |   |                                                   |   |   |                           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                         |   | Sharecapital |    |   | Capitalreserve |     |    | Sharepremium |     |   | Statutorysurplusreserve |     |     | Dis-cretionarysurplusreserve |     |     | Otherreserves |     |     | Retainedearnings |     |     | Total equity attributableto owners ofthe Company |    |     |  Non-controllinginterests |    |     | Totalequity |   |
|----------------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------------|----------|---------|--------------|----------|--------|-------------------------|----------|----------|------------------------------|----------|----------|---------------|----------|----------|------------------|----------|----------|--------------------------------------------------|---------|----------|--------------------------------|---------|----------|-------------|--------|
|                                                                                         |   | RMB          |    |   | RMB            |     |    | RMB          |     |   | RMB                     |     |     | RMB                          |     |     | RMB           |     |     | RMB              |     |     | RMB                                              |    |     | RMB                            |    |     | RMB         |   |
|  Balance as of January 1, 2014                                                          |   |         | 116,565 |   |           |     | (33,713 | )            |     |   | 33,347                  |     |     |                         | 73,337   |     |          |     | 117,000  |             |     |     | 2,491                                            |    |     |                           | 259,776 |     |        |   | 568,803 |   |   |   | 52,823 |   |   |   | 621,626 |   |
| Net income                                                                                   |   | -     |    |   | -       |     |    | -     |     |   | -                |     |     | -                     |     |     | -      |     |     |             | 46,466   |     |                                             |    | 46,466   |                           |    |     | 1,467       |   |   |   | 47,933 |   |
| Other comprehensive income (Note 10)                                                         |   | -     |    |   | -       |     |    | -     |     |   | -                |     |     | -                     |     |     |          | (7,668   | )        |             | - |     |                                             |    | (7,668   | )                              |    |     | (1,598      | )      |   |   | (9,266 | ) |
| Total comprehensive income for the year                                                      |   | -     |    |   | -       |     |    | -     |     |   | -                |     |     | -                     |     |     |          | (7,668   | )        |             |     | 46,466   |                                             |    |     | 38,798                         |    |     |        | (131   | ) |   |   | 38,667 |   |
| Transactions with owners, recorded directly in equity:                                       |   |         |    |   |           |     |    |         |     |   |                    |     |     |                         |     |     |          |     |     |             |     |     |                                             |    |     |                           |    |     |        |   |   |   |   |   |   |   |   |   |   |   |
| Contributions by and distributions to owners:                                                |   |         |    |   |           |     |    |         |     |   |                    |     |     |                         |     |     |          |     |     |             |     |     |                                             |    |     |                           |    |     |        |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of the 2011 Convertible Bonds (Note 24)                                           |   |         | 1,715   |   |           | - |    |         |     | 8,477  |                    |     | - |                         |     | - |          |     | - |             |     | - |                                             |    |     | 10,192                         |    |     | -    |   |   |   | 10,192 |   |
| Final dividend for 2013                                                                      |   | -     |    |   | -       |     |    | -     |     |   | -                |     |     | -                     |     |     | -      |     |     |             | (17,519  | )        |                                             |    | (17,519  | )                              |    | - |        |   |   | (17,519 | ) |
| Interim dividend for 2014                                                                    |   | -     |    |   | -       |     |    | -     |     |   | -                |     |     | -                     |     |     | -      |     |     |             | (10,512  | )        |                                             |    | (10,512  | )                              |    | - |        |   |   | (10,512 | ) |
| Appropriation (Note 29(c))                                                                   |   | -     |    |   | -       |     |    | -     |     |   |                    | 3,215    |     |                         | - |     |          | - |     |             |     | (3,215   | )                                                |    | - |                           |    | - |        |   | - |   |
| Contributions to subsidiaries from non-controlling interests                                 |   | -     |    |   | -       |     |    | -     |     |   | -                |     |     | -                     |     |     | -      |     |     | -         |     |     | -                                         |    |     |                           | 4,155   |     |        |   | 4,155 |   |
| Distributions to non-controlling interests                                                   |   | -     |    |   | -       |     |    | -     |     |   | -                |     |     | -                     |     |     | -      |     |     | -         |     |     | -                                         |    |     |                           | (1,545  | )        |        |   | (1,545 | ) |
| Total contributions by and distributions to owners                                           |   |         | 1,715   |   |           | - |    |         |     | 8,477  |                    |     |     | 3,215                        |     |     | -      |     |     | -         |     |     |                                             | (31,246 | )        |                           |    | (17,839  | )           |   |   | 2,610 |   |   |   | (15,229 | ) |
| Changes in ownership interests in subsidiaries that do not result in a loss of control:      |   |         |    |   |           |     |    |         |     |   |                    |     |     |                         |     |     |          |     |     |             |     |     |                                             |    |     |                           |    |     |        |   |   |   |   |   |   |   |   |   |   |   |
| Transaction with non-controlling interests (Note 34(iii))                                    |   | -     |    |   |           | 3,216    |    |         | - |   |                    | - |     |                         | - |     |          | - |     |             | - |     |                                             |    | 3,216    |                           |    |     | (2,877      | )      |   |   | 339 |   |
| Total changes in ownership interests in subsidiaries that do not result in a loss of control |   | -     |    |   |           | 3,216    |    |         | - |   |                    | - |     |                         | - |     |          | - |     |             | - |     |                                             |    | 3,216    |                           |    |     | (2,877      | )      |   |   | 339 |   |
| Total transactions with owners                                                               |   |         | 1,715   |   |           |     | 3,216   |         |     |   | 8,477                   |     |     |                         | 3,215    |     |          | - |     |             | - |     |                                             |    | (31,246  | )                              |    |     | (14,623     | )      |   |   | (267 | ) |   |   | (14,890 | ) |
| Others (Note 29(g))                                                                          |   | -     |    |   | -       |     |    | -     |     |   | -                |     |     | -                     |     |     |          | (1,002   | )        |             |     | 1,065    |                                             |    |     | 63                             |    |     |        | 111    |   |   |   | 174 |   |
| Balance as of December 31, 2014                                                              |   |         | 118,280 |   |           |     | (30,497 | )            |     |   | 41,824                  |     |     |                         | 76,552   |     |          |     | 117,000  |             |     |     | (6,179                                           | )       |     |                           | 276,061 |     |        |   | 593,041 |   |   |   | 52,536 |   |   |   | 645,577 |   |
|                                                                                         |   |         |    |   |           |     |    |         |     |   |                    |     |     |                         |     |     |          |     |     |             |     |     |                                             |    |     |                           |    |     |        |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                              |   |            |   | Years ended December 31, |     |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|--------------------------|----------|
|                                                                                                              |   | Note            |   | 2012                     |     |   | 2013 |   |   | 2014 |   |
|                                                                                                              |   |            |   | RMB                      |     |   | RMB |   |   | RMB |   |
|                                                                                                              |   |            |   |                     |     |   |   |   |   |   |   |
| Net cash generated from operating activities                                                                      |   | (a)             |   |                     | 142,380  |   |   |   | 151,893 |   |   |   | 148,347 |   |
| Investing activities                                                                                              |   |            |   |                     |     |   |   |   |   |   |   |   |   |   |
| Capital expenditure                                                                                               |   |            |   |                     | (145,663 | ) |   |   | (144,972 | ) |   |   | (113,047 | ) |
| Exploratory wells expenditure                                                                                     |   |            |   |                     | (11,403  | ) |   |   | (9,974 | ) |   |   | (11,334 | ) |
| Purchase of investments, acquisition of subsidiaries, investments in associates and investments in joint ventures |   | 18 and 1934(iv) |   |                     | (10,246  | ) |   |   | (33,487 | ) |   |   | (16,387 | ) |
| Proceeds from disposal of investments, investments in associates and investments in joint ventures                |   |            |   |                     | 1,384    |   |   |   | 4,198 |   |   |   | 3,874 |   |
| Proceeds from disposal of property, plant, equipment and other non-current assets                                 |   |            |   |                     | 325      |   |   |   | 1,550 |   |   |   | 1,020 |   |
| Decrease / (increase) in time deposits with maturities over three months                                          |   |            |   |                     | 142      |   |   |   | 353 |   |   |   | (690 | ) |
| Interest received                                                                                                 |   |            |   |                     | 1,254    |   |   |   | 1,456 |   |   |   | 1,619 |   |
| Investment and dividend income received                                                                           |   |            |   |                     | 2,429    |   |   |   | 2,136 |   |   |   | 2,312 |   |
| Purchase of derivative financial instruments, net                                                                 |   |            |   |                     | (419     | ) |   |   | — |   |   |   | — |   |
| Net cash used in investing activities                                                                             |   |            |   |                     | (162,197 | ) |   |   | (178,740 | ) |   |   | (132,633 | ) |
| Financing activities                                                                                              |   |            |   |                     |     |   |   |   |   |   |   |   |   |   |
| Proceeds from bank and other loans                                                                                |   |            |   |                     | 930,317  |   |   |   | 1,142,890 |   |   |   | 1,128,447 |   |
| Repayments of bank and other loans                                                                                |   |            |   |                     | (888,567 | ) |   |   | (1,105,457 | ) |   |   | (1,114,481 | ) |
| Proceeds from issuing shares                                                                                      |   |            |   |                     | —  |   |   |   | 19,406 |   |   | - |   |
| Contributions to subsidiaries from non-controlling interests                                                      |   |            |   |                     | 1,474    |   |   |   | 12,696 |   |   |   | 4,128 |   |
| Dividends paid by the Company                                                                                     |   |            |   |                     | (25,486  | ) |   |   | (28,298 | ) |   |   | (28,031 | ) |
| Distributions by subsidiaries to non-controlling interests                                                        |   |            |   |                     | (2,807   | ) |   |   | (1,346 | ) |   |   | (1,674 | ) |
| Interest paid                                                                                                     |   |            |   |                     | (9,151   | ) |   |   | (8,323 | ) |   |   | (9,789 | ) |
| Acquisitions of non-controlling interests of subsidiaries                                                         |   |            |   |                     | (152     | ) |   |   | (49 | ) |   |   | (21 | ) |
| Net cash generated from / (used in) financing activities                                                          |   |            |   |                     | 5,628    |   |   |   | 31,519 |   |   |   | (21,421 | ) |
| Net (decrease) / increase in cash and cash equivalents                                                            |   |            |   |                     | (14,189  | ) |   |   | 4,672 |   |   |   | (5,707 | ) |
| Cash and cash equivalents as of January 1                                                                         |   |            |   |                     | 24,647   |   |   |   | 10,456 |   |   |   | 15,046 |   |
| Effect of foreign currency exchange rate changes                                                                  |   |            |   |                     | (2       | ) |   |   | (82 | ) |   |   | 16 |   |
| Cash and cash equivalents as of December 31                                                                       |   |            |   |                     | 10,456   |   |   |   | 15,046 |   |   |   | 9,355 |   |
|                                                                                                              |   |            |   |                     |     |   |   |   |   |   |   |   |   |   |

----

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

|                                                                                       |   | Years ended December 31, |    |
|--------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                       |   | 2012                     |    |   | 2013 |   |   | 2014 |   |
|                                                                                       |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Operating activities                                                                       |   |                     |    |   |   |   |   |   |   |
| Earnings before income tax                                                                 |   |                     | 90,642  |   |   |   | 95,052 |   |   |   | 65,504 |   |
| Adjustment for:                                                                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization                                                   |   |                     | 70,456  |   |   |   | 81,265 |   |   |   | 90,097 |   |
| Dry hole costs written off                                                                 |   |                     | 7,988   |   |   |   | 5,599 |   |   |   | 5,587 |   |
| Income from associates and joint ventures                                                  |   |                     | (1,626  | ) |   |   | (2,359 | ) |   |   | (3,630 | ) |
| Investment income                                                                          |   |                     | (235    | ) |   |   | (154 | ) |   |   | (2,616 | ) |
| Interest income                                                                            |   |                     | (1,254  | ) |   |   | (1,568 | ) |   |   | (1,779 | ) |
| Interest expense                                                                           |   |                     | 11,217  |   |   |   | 10,602 |   |   |   | 11,218 |   |
| Gain on foreign currency exchange rate changes and derivative financial instruments        |   |                     | (190    | ) |   |   | (934 | ) |   |   | (662 | ) |
| (Gain) / loss on disposal of property, plant, equipment and other non-currents assets, net |   |                     | (16     | ) |   |   | 826 |   |   |   | 1,622 |   |
| Impairment losses on assets                                                                |   |                     | 1,014   |   |   |   | 4,044 |   |   |   | 6,839 |   |
| Loss / (gain)  on embedded derivative component of the convertible bonds         |   |                     | 62      |   |   |   | (2,028 | ) |   |   | 4,611 |   |
|                                                                                       |   |                     | 178,058 |   |   |   | 190,345 |   |   |   | 176,791 |   |
| Accounts receivable and other current assets                                               |   |                     | (25,593 | ) |   |   | (7,515 | ) |   |   | (28,654 | ) |
| Inventories                                                                                |   |                     | (14,845 | ) |   |   | (5,096 | ) |   |   | 28,540 |   |
| Accounts payable and other current liabilities                                             |   |                     | 27,438  |   |   |   | 151 |   |   |   | (6,777 | ) |
|                                                                                       |   |                     | 165,058 |   |   |   | 177,885 |   |   |   | 169,900 |   |
| Income tax paid                                                                            |   |                     | (22,678 | ) |   |   | (25,992 | ) |   |   | (21,553 | ) |
| Net cash generated from operating activities                                               |   |                     | 142,380 |   |   |   | 151,893 |   |   |   | 148,347 |   |
|                                                                                       |   |                     |    |   |   |   |   |   |   |   |   |   |

----

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

| (a) | New and amended standards and interpretations adopted by the Group |
|-----|--------------------------------------------------------------------|

----

| (b) | New and amended standards and interpretations not yet adopted by the Group |
|-----|----------------------------------------------------------------------------|

----

| 2 | SIGNIFICANT ACCOUNTING POLICIES |
|---|---------------------------------|

| (a) | Basis of consolidation |
|-----|------------------------|

|   | (i) | Subsidiaries and non-controlling interests |
|--------|-----|--------------------------------------------|

|   | (ii) | Associates and joint ventures |
|--------|------|-------------------------------|

----

|   | (iii) | Transactions eliminated on consolidation |
|--------|-------|------------------------------------------|

| (b) | Translation of foreign currencies |
|-----|-----------------------------------|

| (c) | Cash and cash equivalents |
|-----|---------------------------|

| (d) | Trade, bills and other receivables |
|-----|------------------------------------|

----

| (e) | Inventories |
|-----|-------------|

| (f) | Property, plant and equipment |
|-----|-------------------------------|

| Buildings                       | 12 to 50 years |
|---------------------------------|----------------|
| Equipment, machinery and others | 4 to 30 years  |

| (g) | Oil and gas properties |
|-----|------------------------|

----

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

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

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

| (k) | Available-for-sale financial assets |
|-----|-------------------------------------|

----

| (l) | Derivative financial instruments |
|-----|----------------------------------|

| (m) | Hedging |
|-----|---------|

|   | (i) | Cash flow hedges |
|--------|-----|------------------|

|   | (ii) | Hedge of net investments in foreign operations |
|--------|------|------------------------------------------------|

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

|   | (i) | Trade accounts receivable, other receivables and investment in equity securities that do not have an quoted market price in an active market are reviewed at each balance sheet date to determine whether there is objective evidence of impairment. If any such evidence exists, an impairment loss is determined and recognized. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | Impairment of other long-lived assets is accounted as follows: |
|--------|------|----------------------------------------------------------------|

| (o) | Trade, bills and other payables |
|-----|---------------------------------|

| (p) | Interest-bearing borrowings |
|-----|-----------------------------|

| (q) | Convertible bonds |
|-----|-------------------|

|   | (i) | Convertible bonds that contain an equity component |
|--------|-----|----------------------------------------------------|

----

|   | (ii) | Other convertible bonds |
|--------|------|-------------------------|

| (r) | Provisions and contingent liability |
|-----|-------------------------------------|

----

| (s) | Revenue recognition |
|-----|---------------------|

| (t) | Borrowing costs |
|-----|-----------------|

| (u) | Repairs and maintenance expenditure |
|-----|-------------------------------------|

| (v) | Environmental expenditures |
|-----|----------------------------|

| (w) | Research and development expense |
|-----|----------------------------------|

| (x) | Operating leases |
|-----|------------------|

| (y) | Employee benefits |
|-----|-------------------|

----

| (z) | Income tax |
|-----|------------|

| (aa) | Dividends |
|------|-----------|

| (bb) | Segment reporting |
|------|-------------------|

----

| 3. | OTHER OPERATING REVENUES |
|----|--------------------------|

|                                  |   | Years ended December 31, |
|---------------------------------------|--------|--------------------------|
|                                  |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                                  |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Sale of materials, service and others |   |                     | 51,918 |   |   |   | 46,452 |   |   |   | 43,611 |   |
| Rental income                         |   |                     | 509 |   |   |   | 612 |   |   |   | 662 |   |
|                                  |   |                     | 52,427 |   |   |   | 47,064 |   |   |   | 44,273 |   |
|                                  |   |                     |   |   |   |   |   |   |   |   |   |   |

| 4. | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|----|----------------------------------------------|

|                        |   | Years ended December 31, |
|-----------------------------|--------|--------------------------|
|                        |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                        |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Operating lease charges     |   |                     | 11,646 |   |   |   | 14,171 |   |   |   | 14,052 |   |
| Impairment losses           |   |                     |   |   |   |   |   |   |   |   |   |   |
| - trade accounts receivable |   |                     | 44 |   |   |   | 36 |   |   |   | 44 |   |
| - other receivables         |   |                     | 47 |   |   |   | 25 |   |   |   | 61 |   |

| 5. | PERSONNEL EXPENSES |
|----|--------------------|

|                                          |   | Years ended December 31, |
|-----------------------------------------------|--------|--------------------------|
|                                          |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                                          |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Salaries, wages and other benefits            |   |                     | 45,164 |   |   |   | 48,094 |   |   |   | 49,599 |   |
| Contributions to retirement schemes (Note 32) |   |                     | 6,603 |   |   |   | 7,259 |   |   |   | 7,634 |   |
|                                          |   |                     | 51,767 |   |   |   | 55,353 |   |   |   | 57,233 |   |
|                                          |   |                     |   |   |   |   |   |   |   |   |   |   |

| 6. | TAXES OTHER THAN INCOME TAX |
|----|-----------------------------|

|                                   |   | Years ended December 31, |
|----------------------------------------|--------|--------------------------|
|                                   |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                                   |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Consumption tax (i)                    |   |                     | 129,044 |   |   |   | 133,312 |   |   |   | 136,718 |   |
| Special oil income levy (ii)           |   |                     | 29,319 |   |   |   | 25,541 |   |   |   | 22,187 |   |
| City construction tax  (iii) |   |                     | 12,443 |   |   |   | 13,283 |   |   |   | 13,753 |   |
| Education surcharge                    |   |                     | 9,436 |   |   |   | 10,065 |   |   |   | 10,210 |   |
| Resources tax (iv)                     |   |                     | 7,610 |   |   |   | 7,329 |   |   |   | 7,245 |   |
| Other                                  |   |                     | 631 |   |   |   | 1,142 |   |   |   | 1,089 |   |
|                                   |   |                     | 188,483 |   |   |   | 190,672 |   |   |   | 191,202 |   |
| Note:                                  |   |                     |   |   |   |   |   |   |   |   |   |   |

| (i) | Consumption tax was levied based on sales quantities of taxable products, tax rate of products is presented as below: |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| Products      |   | Effective from January 1, 2009RMB/Ton |     |   | Effective from November 29,2014RMB/Ton |   |     | Effective from December 13, 2014RMB/Ton |   |
|---------------|--------|---------------------------------------|----------|--------|----------------------------------------|--------|----------|----------------------------------------------|--------|
| Gasoline      |   |                                  | 1,388.00 |   |                                   |   | 1,554.56 |                                         |   |   | 1,943.20 |   |
| Diesel        |   |                                  | 940.80   |   |                                   |   | 1,105.44 |                                         |   |   | 1,293.60 |   |
| Naphtha       |   |                                  | 1,385.00 |   |                                   |   | 1,551.20 |                                         |   |   | 1,939.00 |   |
| Solvent oil   |   |                                  | 1,282.00 |   |                                   |   | 1,435.84 |                                         |   |   | 1,794.80 |   |
| Lubricant oil |   |                                  | 1,126.00 |   |                                   |   | 1,261.12 |                                         |   |   | 1,576.40 |   |
| Fuel oil      |   |                                  | 812.00   |   |                                   |   | 954.10   |                                         |   |   | 1,116.50 |   |
| Jet fuel oil  |   |                                  | 996.80   |   |                                   |   | 1,171.24 |                                         |   |   | 1,370.60 |   |

----

| (ii) | In accordance with PRC new rules and regulations, the threshold above which special oil income levy will be imposed (with the five-level progressive tax rates varying from 20% to 40% remaining) will be raised from USD 55 per barrel to USD 65 per barrel from January 1, 2015. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | City construction tax is levied on an entity based on its total paid amount of value-added tax, consumption tax and business tax. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------|

| (iv) | The resources tax rate was raised from 5% to 6% from December 1, 2014. |
|------|------------------------------------------------------------------------|

| 7. | OTHER OPERATING INCOME / (EXPENSE), NET |
|----|-----------------------------------------|

|                                                                                                   |   | Years ended December 31, |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                   |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                                                                                                   |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Fines, penalties and compensations                                                                     |   |                     | (181   | ) |   |   | (47 | ) |   |   | (110 | ) |
| Donations                                                                                              |   |                     | (231   | ) |   |   | (245 | ) |   |   | (125 | ) |
| Gain / (loss) on disposal of property, plant, equipment and other non-currents assets, net             |   |                     | 133    |   |   |   | (826 | ) |   |   | (1,622 | ) |
| Impairment losses on long-lived assets (Note i)                                                        |   |                     | (1,014 | ) |   |   | (2,661 | ) |   |   | (3,619 | ) |
| Net realized and unrealized (loss) / gain on derivative financial instruments not qualified as hedging |   |                     | (68    | ) |   |   | 56 |   |   |   | 7 |   |
| Ineffective portion of change in fair value of cash flow hedges                                        |   |                     | 1      |   |   |   | (34 | ) |   |   | 2,260 |   |
| Government grants (Note ii)                                                                            |   |                     | 2,926  |   |   |   | 2,487 |   |   |   | 3,281 |   |
| Others                                                                                                 |   |                     | (337   | ) |   |   | (607 | ) |   |   | (225 | ) |
|                                                                                                   |   |                     | 1,229  |   |   |   | (1,877 | ) |   |   | (153 | ) |
|                                                                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |

| (i) | The primary factor resulting in the exploration and production (“E&P”) segment impairment losses of RMB 1,006, RMB 2,532 and RMB 2,436 on property, plant and equipment for the years ended December 31, 2012, 2013 and 2014, respectively was unsuccessful development drilling and high operating and development costs for certain oil fields. The carrying values of these E&P properties were written down to respective recoverable amounts which were determined based on the present values of the expected future cash flows of the asset using a pre-tax discount rate of 12.5%, 10.70% and 10.13% for the years ended December 31, 2012, 2013 and 2014, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Impairment losses recognized for the chemicals segment were RMB 1,106 for the years ended December 31 2014, and comprised of impairment losses of and RMB 917 on property, plant and equipment for the years ended December 31, 2014, impairment losses of RMB 10 on construction in progress for the years ended December 31, 2014, and impairment losses of RMB 179 on Intangible Assets of the year ended December 31, 2014. Impairment losses recognized for the refining segment were RMB 88 and RMB 29 for the years ended December 31, 2013 and 2014, respectively, and comprised of impairment losses of RMB 88 and RMB 29 on property, plant and equipment for the years ended December 31, 2013 and 2014, respectively. These impairment losses relate to certain refining and chemicals production facilities that are held for use. The carrying values of these facilities were written down to their recoverable amounts that were primarily determined based on the asset held for use model using the present value of estimated future cash flows of the production facilities using the pre-tax discount rates. The primary factor resulting in the impairment losses on long-lived assets 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 for the years ended December 31, 2012 and 2013 and the suspension of operations of certain production facilities for the year ended December 31, 2014. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Impairment losses recognized on long-lived assets of the marketing and distribution segment were RMB 8, RMB 35 and RMB 40 for the years ended December 31, 2012, 2013 and 2014, respectively, and comprised of impairment losses of RMB 8, RMB 18 and RMB 38 on property, plant and equipment for the years ended December 31, 2012, 2013 and 2014, respectively, impairment losses of RMB 15 on construction in progress for the years ended December 31, 2013, and impairment losses of RMB 2 and RMB 2 on investments of the year ended December 31, 2013 and 2014, 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. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Impairment losses recognized on long-lived assets of the corporate and others segment were RMB 15 and RMB 8 for the years ended December 31, 2013 and 2014, respectively and comprised o impairment losses of RMB 15 and RMB 8 on property, plant and equipment for the years ended December 31, 2013 and 2014, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Government grants for the years ended December 31, 2012, 2013 and 2014 primarily represent financial appropriation income and non-income tax refunds received from respective government agencies without conditions or other contingencies attached to the receipts of these grants. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | INTEREST EXPENSE |
|----|------------------|

|                                                                                              |   | Years ended December 31, |   |
|---------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                              |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                                                                                              |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Interest expense incurred                                                                         |   |                     | 12,069 |   |   |   | 11,435 |   |   |   | 11,929 |   |
| Less: Interest expense capitalized*                                                               |   |                     | (1,708 | ) |   |   | (1,710 | ) |   |   | (1,719 | ) |
|                                                                                              |   |                     | 10,361 |   |   |   | 9,725 |   |   |   | 10,210 |   |
| Accretion expenses (Note 27)                                                                      |   |                     | 856    |   |   |   | 877 |   |   |   | 1,008 |   |
| Interest expense                                                                                  |   |                     | 11,217 |   |   |   | 10,602 |   |   |   | 11,218 |   |
|                                                                                              |   |                     |   |   |   |   |   |   |   |   |   |   |
| * Interest rates per annum at which borrowing costs were Capitalized for construction in progress |   | 2.6% to 6.2              | %      |   | 0.9% to 6.4 | % |   | 0.7% to 7.1 | % |
|                                                                                              |   |                     |   |   |   |   |   |   |   |

| 9. | TAX EXPENSE |
|----|-------------|

|                        |   | Years ended December 31, |   |
|-----------------------------|--------|--------------------------|--------|
|                        |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                        |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Current tax                 |   |                     |   |   |   |   |   |   |   |
| - Provision for the year    |   |                     | 23,950 |   |   |   | 22,741 |   |   |   | 18,341 |   |
| - Adjustment of prior years |   |                     | 572    |   |   |   | 302 |   |   |   | 1,022 |   |
| Deferred taxation (Note 21) |   |                     | (676   | ) |   |   | 1,720 |   |   |   | (1,792 | ) |
|                        |   |                     | 23,846 |   |   |   | 24,763 |   |   |   | 17,571 |   |
|                        |   |                     |   |   |   |   |   |   |   |   |   |   |

|                                                                                                        |   | Years ended December 31, |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                        |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                                                                                                        |   | RMB                      |   |   | RMB |   |   | RMB |   |
| Earnings before income tax                                                                                  |   |                     | 90,642 |   |   |   | 95,052 |   |   |   | 65,504 |   |
| Expected PRC income tax expense at a statutory tax rate of 25%                                              |   |                     | 22,661 |   |   |   | 23,763 |   |   |   | 16,376 |   |
| Tax effect of preferential tax rate (Note i)                                                                |   |                     | (2,080 | ) |   |   | (1,962 | ) |   |   | (1,722 | ) |
| Effect of income taxes from foreign operations different from taxes at the PRC statutory tax rate (Note ii) |   |                     | 1,911  |   |   |   | 2,171 |   |   |   | 622 |   |
| Tax effect of non-deductible expenses                                                                       |   |                     | 536    |   |   |   | 805 |   |   |   | 717 |   |
| Tax effect of non-taxable income                                                                            |   |                     | (707   | ) |   |   | (1,327 | ) |   |   | (1,126 | ) |
| Tax effect of utilization of previously unrecognized tax losses and temporary differences                   |   |                     | (190   | ) |   |   | (575 | ) |   |   | (27 | ) |
| Tax effect of tax losses not recognized                                                                     |   |                     | 963    |   |   |   | 660 |   |   |   | 1,595 |   |
| Write-down of deferred tax assets                                                                           |   |                     | 180    |   |   |   | 926 |   |   |   | 114 |   |
| Adjustment of prior years                                                                                   |   |                     | 572    |   |   |   | 302 |   |   |   | 1,022 |   |
| Actual income tax expense                                                                                   |   |                     | 23,846 |   |   |   | 24,763 |   |   |   | 17,571 |   |
|                                                                                                        |   |                     |   |   |   |   |   |   |   |   |   |   |

----

| (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 western regions in the PRC are taxed at preferential income tax rate of 15% through the year 2020. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | It is mainly due to the foreign operation in the Republic of Angola (“Angola”) that is taxed at 50% of the assessable income as determined in accordance with the relevant income tax rules and regulations of Angola. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | OTHER COMPREHENSIVE INCOME |
|-----|----------------------------|

|                                                                                            |   | Years ended December 31, |    |
|-------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                            |   | 2012                     |    |   | 2013 |   |   | 2014 |   |
|                                                                                            |   | Before-tax amount        |    |   | Tax effect |   |   | Net-of-tax amount |   |   | Before-tax amount |   |   | Tax effect |   |   | Net-of-tax amount |   |   | Before-tax amount |   |   | Tax effect |   |   | Net-of-tax amount |   |
|                                                                                            |   | RMB                      |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
|                                                                                            |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges:                                                                               |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effective portion of changes in fair value of hedging instruments recognized during the year    |   |                     | (438    | ) |   |   | 71 |   |   |   | (367 | ) |   |   | 1,271 |   |   |   | (210 | ) |   |   | 1,061 |   |   |   | 265 |   |   |   | (47 | ) |   |   | 218 |   |
| Amounts transferred to initial carrying amount of hedged items                                  |   |                     | — |   |   |   | — |   |   |   | — |   |   |   | (9 | ) |   |   | 1 |   |   |   | (8 | ) |   |   | (1,013 | ) |   |   | 181 |   |   |   | (832 | ) |
| Reclassification adjustments for amounts transferred to the consolidated statement of income    |   |                     | 258     |   |   |   | (42 | ) |   |   | 216 |   |   |   | (538 | ) |   |   | 89 |   |   |   | (449 | ) |   |   | (4,710 | ) |   |   | 839 |   |   |   | (3,871 | ) |
| Net movement during the year recognized in other comprehensive income                           |   |                     | (180    | ) |   |   | 29 |   |   |   | (151 | ) |   |   | 724 |   |   |   | (120 | ) |   |   | 604 |   |   |   | (5,458 | ) |   |   | 973 |   |   |   | (4,485 | ) |
| Available-for-sale securities:                                                                  |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes in fair value recognized during the year                                                |   |                     | 26      |   |   |   | — |   |   |   | 26 |   |   |   | 1,747 |   |   |   | (433 | ) |   |   | 1,314 |   |   |   | 659 |   |   |   | (146 | ) |   |   | 513 |   |
| Reclassification adjustments for amounts transferred to the consolidated statement of income(i) |   |                     | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (2,317 | ) |   |   | 579 |   |   |   | (1,738 | ) |
| Net movement during the year recognized in other comprehensive income                           |   |                     | 26      |   |   |   | — |   |   |   | 26 |   |   |   | 1,747 |   |   |   | (433 | ) |   |   | 1,314 |   |   |   | (1,658 | ) |   |   | 433 |   |   |   | (1,225 | ) |
| Share of other comprehensive income/ (loss) of associates and joint ventures                    |   |                     | 80      |   |   |   | — |   |   |   | 80 |   |   |   | (297 | ) |   |   | — |   |   |   | (297 | ) |   |   | (3,042 | ) |   | - |   |   |   | (3,042 | ) |
| Foreign currency translation differences                                                        |   |                     | (44     | ) |   |   | — |   |   |   | (44 | ) |   |   | (689 | ) |   |   | — |   |   |   | (689 | ) |   |   | (514 | ) |   | - |   |   |   | (514 | ) |
| Other comprehensive income                                                                      |   |                     | (118    | ) |   |   | 29 |   |   |   | (89 | ) |   |   | 1,485 |   |   |   | (553 | ) |   |   | 932 |   |   |   | (10,672 | ) |   |   | 1,406 |   |   |   | (9,266 | ) |
|                                                                                            |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (i) | The Group sold its shares of China Gas Holdings Limited in August 2014, which was accounted for as available-for-sale financial assets prior to the transaction and the accumulated unrealized gain in other comprehensive income of RMB 2,317 was reclassified to the investment income at the completion of this transaction. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | BASIC AND DILUTED EARNINGS PER SHARE |
|-----|--------------------------------------|

----

| (i) | Net income attributable to ordinary owners of the Company (diluted) |
|-----|---------------------------------------------------------------------|

|                                                                                                                                 |   | 2012   |   |   | 2013   |   |   | 2014   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                 |   | RMB    |   |   | RMB    |   |   | RMB    |   |
| Net income attributable to ordinary owners of the Company                                                                            |   |   | 63,879 |   |   |   | 66,132 |   |   |   | 46,466 |   |
| After tax effect of interest expense (net of exchange gain) of the 2007 Convertible Bonds and the 2011 Convertible Bonds             |   |   | 556    |   |   |   | 476    |   |   |   | 133 |   |
| After tax effect of net loss / (gain) on embedded derivative components of the 2007 Convertible Bonds and the 2011 Convertible Bonds |   |   | 47     |   |   |   | (1,521 | )      |   |   | 1 |   |
| Net income attributable to ordinary owners of the Company (diluted)                                                                  |   |   | 64,482 |   |   |   | 65,087 |   |   |   | 46,600 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |

| (ii) | Weighted average number of shares (diluted) |
|------|---------------------------------------------|

|                                                          |   | 2012             |            |   | 2013             |   |            | 2014             |   |
|---------------------------------------------------------------|--------|------------------|-----------------|--------|------------------|--------|-----------------|------------------|--------|
|                                                          |   | Number of shares |            |   | Number of shares |   |            | Number of shares |   |
| Weighted average number of shares as of December 31           |   |             | 112,853,724,741 |   |             |   | 116,102,910,373 |             |   |   | 116,822,487,451 |   |
| Effect of conversion of the 2007 Convertible Bonds            |   |             | 1,421,733,118   |   |             |   | 1,439,688,889   |             |   |   | 419,909,259 |   |
| Effect of conversion of the 2011 Convertible Bonds            |   |             | 4,136,675,274   |   |             |   | 4,316,219,014   |             |   | - |   |
| Weighted average number of shares (diluted) as of December 31 |   |             | 118,412,133,133 |   |             |   | 121,858,818,276 |             |   |   | 117,242,396,710 |   |
|                                                          |   |             |            |   |             |   |            |             |   |   |   |   |

| 12. | TRADE ACCOUNTS RECEIVABLE, NET |
|-----|--------------------------------|

|                                                           |   | December 31, |   |
|----------------------------------------------------------------|--------|--------------|--------|
|                                                           |   | 2013         |   |   | 2014 |   |
|                                                           |   | RMB          |   |   | RMB |   |
| Amounts due from third parties                                 |   |         | 50,638 |   |   |   | 65,883 |   |
| Amounts due from Sinopec Group Company and fellow subsidiaries |   |         | 9,311  |   |   |   | 20,188 |   |
| Amounts due from associates and jointly ventures               |   |         | 9,091  |   |   |   | 5,290 |   |
|                                                           |   |         | 69,040 |   |   |   | 91,361 |   |
| Less: Impairment losses for bad and doubtful debts             |   |         | (574   | ) |   |   | (530 | ) |
| Trade accounts receivable, net                                 |   |         | 68,466 |   |   |   | 90,831 |   |
|                                                           |   |         |   |   |   |   |   |   |

|                      |   | 2012   |    |   | 2013   |   |    | 2014   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                      |   | RMB    |    |   | RMB    |   |    | RMB    |   |
| Balance as of January 1   |   |   | 1,012   |   |   |   | 699     |   |   |   | 574 |   |
| Provision for the year    |   |   | 44      |   |   |   | 36      |   |   |   | 44 |   |
| Written back for the year |   |   | (155    | )      |   |   | (38     | )      |   |   | (15 | ) |
| Written off for the year  |   |   | (202    | )      |   |   | (123    | )      |   |   | (57 | ) |
| Other                     |   |   | – |   |   |   | – |   |   |   | (16 | ) |
| Balance as of December 31 |   |   | 699     |   |   |   | 574     |   |   |   | 530 |   |
|                      |   |   |    |   |   |   |    |   |   |   |   |   |

----

----

| 13. | INVENTORIES |
|-----|-------------|

|                                                   |   | December 31, |    |
|--------------------------------------------------------|--------|--------------|---------|
|                                                   |   | 2013         |    |   | 2014 |   |
|                                                   |   | RMB          |    |   | RMB |   |
| Crude oil and other raw materials                      |   |         | 124,198 |   |   |   | 95,298 |   |
| Work in progress                                       |   |         | 21,181  |   |   |   | 22,728 |   |
| Finished goods                                         |   |         | 76,289  |   |   |   | 71,959 |   |
| Spare parts and consumables                            |   |         | 1,989   |   |   |   | 1,841 |   |
|                                                   |   |         | 223,657 |   |   |   | 191,826 |   |
| Less: Allowance for diminution in value of inventories |   |         | (1,751  | ) |   |   | (3,603 | ) |
|                                                   |   |         | 221,906 |   |   |   | 188,223 |   |
|                                                   |   |         |    |   |   |   |   |   |

|                              |   | 2012   |   |   | 2013   |   |    | 2014   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|                              |   | RMB    |   |   | RMB    |   |    | RMB    |   |
| Balance as of January 1           |   |   | 1,382  |   |   |   | 491     |   |   |   | 1,751 |   |
| Allowance for the year            |   |   | 7,419  |   |   |   | 1,453   |   |   |   | 3,327 |   |
| Reversal of allowance on disposal |   |   | (378   | )      |   |   | (1      | )      |   |   | (136 | ) |
| Written off                       |   |   | (7,943 | )      |   |   | (192    | )      |   |   | (1,327 | ) |
| Other increase                    |   |   | 11     |   |   |   | — |   |   |   | (12 | ) |
| Balance as of December 31         |   |   | 491    |   |   |   | 1,751   |   |   |   | 3,603 |   |
|                              |   |   |   |   |   |   |    |   |   |   |   |   |

| 14. | PREPAID EXPENSES AND OTHER CURRENT ASSETS |
|-----|-------------------------------------------|

|                                 |   | December 31, |   |
|--------------------------------------|--------|--------------|--------|
|                                 |   | 2013         |   |   | 2014 |   |
|                                 |   | RMB          |   |   | RMB |   |
| Receivables                          |   |         | 10,130 |   |   |   | 17,941 |   |
| Advances to suppliers                |   |         | 4,216  |   |   |   | 3,780 |   |
| Value-added input tax to be deducted |   |         | 19,756 |   |   |   | 22,684 |   |
| Derivative financial instruments     |   |         | 4,664  |   |   |   | 12,622 |   |
|                                 |   |         | 38,766 |   |   |   | 57,027 |   |
|                                 |   |         |   |   |   |   |   |   |

----

| 15. | PROPERTY, PLANT AND EQUIPMENT |
|-----|-------------------------------|

|                                                             |   | Plants and buildings |    |   | Oil and gas properties |   |    | Equipment, machinery and others |   |   | Total   |   |
|------------------------------------------------------------------|--------|---------------------------|---------|--------|------------------------|--------|---------|---------------------------------|--------|--------|---------|--------|
|                                                             |   | RMB                       |    |   | RMB                    |   |    | RMB                             |   |   | RMB     |   |
| Cost:                                                            |   |                      |    |   |                   |   |    |                            |   |   |    |   |
| Balance as of January 1, 2013                                    |   |                      | 86,215  |   |                   |   | 451,288 |                            |   |   | 693,583 |   |   |   | 1,231,086 |   |
| Additions                                                        |   |                      | 100     |   |                   |   | 4,188   |                            |   |   | 1,058   |   |   |   | 5,346 |   |
| Transferred from construction in progress                        |   |                      | 10,385  |   |                   |   | 61,144  |                            |   |   | 87,573  |   |   |   | 159,102 |   |
| Contributed to joint ventures                                    |   |                      | (2      | )      |                   |   | — |                            |   |   | (53     | )      |   |   | (55 | ) |
| Reclassifications                                                |   |                      | 1,010   |   |                   |   | 10      |                            |   |   | (1,020  | )      |   |   | — |   |
| Reclassification to lease prepayments and other long-term assets |   |                      | (252    | )      |                   |   | — |                            |   |   | (3,329  | )      |   |   | (3,581 | ) |
| Exchange adjustments                                             |   |                      | (50     | )      |                   |   | (929    | )                               |   |   | (65     | )      |   |   | (1,044 | ) |
| Disposals                                                        |   |                      | (619    | )      |                   |   | — |                            |   |   | (9,645  | )      |   |   | (10,264 | ) |
| Balance as of December 31, 2013                                  |   |                      | 96,787  |   |                   |   | 515,701 |                            |   |   | 768,102 |   |   |   | 1,380,590 |   |
|                                                             |   |                      |    |   |                   |   |    |                            |   |   |    |   |   |   |   |   |
| Balance as of January 1, 2014                                    |   |                      | 96,787  |   |                   |   | 515,701 |                            |   |   | 768,102 |   |   |   | 1,380,590 |   |
| Additions                                                        |   |                      | 40      |   |                   |   | 3,309   |                            |   |   | 579     |   |   |   | 3,928 |   |
| Transferred from construction in progress                        |   |                      | 6,164   |   |                   |   | 50,130  |                            |   |   | 73,857  |   |   |   | 130,151 |   |
| Contribution to a joint venture                                  |   |                      | (52     | )      |                   |   | — |                            |   |   | (190    | )      |   |   | (242 | ) |
| Acquisitions (Note 34 (iv))                                      |   |                      | 440     |   |                   |   | — |                            |   |   | 2,984   |   |   |   | 3,424 |   |
| Reclassifications                                                |   |                      | 390     |   |                   |   | (6      | )                               |   |   | (384    | )      |   |   | — |   |
| Reclassification to lease prepayments and other long-term assets |   |                      | (1,822  | )      |                   |   | (13     | )                               |   |   | (18,854 | )      |   |   | (20,689 | ) |
| Exchange adjustments                                             |   |                      | 6       |   |                   |   | 120     |                            |   |   | 8       |   |   |   | 134 |   |
| Disposals                                                        |   |                      | (863    | )      |                   |   | (69     | )                               |   |   | (12,924 | )      |   |   | (13,856 | ) |
| Balance as of December 31, 2014                                  |   |                      | 101,090 |   |                   |   | 569,172 |                            |   |   | 813,178 |   |   |   | 1,483,440 |   |
|                                                             |   |                      |    |   |                   |   |    |                            |   |   |    |   |   |   |   |   |
| Accumulated depreciation:                                        |   |                      |    |   |                   |   |    |                            |   |   |    |   |   |   |   |   |
| Balance as of January 1, 2013                                    |   |                      | 34,490  |   |                   |   | 252,214 |                            |   |   | 355,413 |   |   |   | 642,117 |   |
| Depreciation for the year                                        |   |                      | 3,109   |   |                   |   | 34,347  |                            |   |   | 38,065  |   |   |   | 75,521 |   |
| Impairment losses for the year                                   |   |                      | 23      |   |                   |   | 2,520   |                            |   |   | 101     |   |   |   | 2,644 |   |
| Transferred from construction in progress                        |   |                      | 516     |   |                   |   | — |                            |   |   | — |   |   |   | 516 |   |
| Contributed to joint ventures                                    |   |                      | (1      | )      |                   |   | — |                            |   |   | (34     | )      |   |   | (35 | ) |
| Reclassifications                                                |   |                      | 83      |   |                   |   | 7       |                            |   |   | (90     | )      |   |   | — |   |
| Reclassification to lease prepayments and other long-term assets |   |                      | (40     | )      |                   |   | — |                            |   |   | (394    | )      |   |   | (434 | ) |
| Written back on disposals                                        |   |                      | (483    | )      |                   |   | — |                            |   |   | (8,312  | )      |   |   | (8,795 | ) |
| Exchange adjustments                                             |   |                      | (17     | )      |                   |   | (494    | )                               |   |   | (28     | )      |   |   | (539 | ) |
| Balance as of December 31, 2013                                  |   |                      | 37,680  |   |                   |   | 288,594 |                            |   |   | 384,721 |   |   |   | 710,995 |   |
|                                                             |   |                      |    |   |                   |   |    |                            |   |   |    |   |   |   |   |   |
| Balance as of January 1, 2014                                    |   |                      | 37,680  |   |                   |   | 288,594 |                            |   |   | 384,721 |   |   |   | 710,995 |   |
| Depreciation for the year                                        |   |                      | 3,381   |   |                   |   | 38,235  |                            |   |   | 41,513  |   |   |   | 83,129 |   |
| Impairment losses for the year                                   |   |                      | 21      |   |                   |   | 2,436   |                            |   |   | 971     |   |   |   | 3,428 |   |
| Reclassifications                                                |   |                      | 130     |   |                   |   | (2      | )                               |   |   | (128    | )      |   |   | — |   |
| Reclassification to lease prepayments and other long-term assets |   |                      | (317    | )      |                   |   | (8      | )                               |   |   | (5,117  | )      |   |   | (5,442 | ) |
| Written back on disposals                                        |   |                      | (732    | )      |                   |   | (57     | )                               |   |   | (11,441 | )      |   |   | (12,230 | ) |
| Exchange adjustment                                              |   |                      | 2       |   |                   |   | 69      |                            |   |   | 4       |   |   |   | 75 |   |
| Balance as of December 31, 2014                                  |   |                      | 40,165  |   |                   |   | 329,267 |                            |   |   | 410,523 |   |   |   | 779,955 |   |
|                                                             |   |                      |    |   |                   |   |    |                            |   |   |    |   |   |   |   |   |
| Net book value:                                                  |   |                      |    |   |                   |   |    |                            |   |   |    |   |   |   |   |   |
| Balance as of January 1, 2013                                    |   |                      | 51,725  |   |                   |   | 199,074 |                            |   |   | 338,170 |   |   |   | 588,969 |   |
| Balance as of December 31, 2013                                  |   |                      | 59,107  |   |                   |   | 227,107 |                            |   |   | 383,381 |   |   |   | 669,595 |   |
| Balance as of December 31, 2014                                  |   |                      | 60,925  |   |                   |   | 239,905 |                            |   |   | 402,655 |   |   |   | 703,485 |   |
|                                                             |   |                      |    |   |                   |   |    |                            |   |   |    |   |   |   |   |   |

----

| 16. | CONSTRUCTION IN PROGRESS |
|-----|--------------------------|

|                                                             |   | 2013   |     |   | 2014   |   |
|------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                             |   | RMB    |     |   | RMB    |   |
| Balance as of January 1                                          |   |   | 168,977  |   |   |   | 160,630 |   |
| Additions                                                        |   |   | 167,605  |   |   |   | 149,830 |   |
| Acquisitions (Note 34 (iv))                                      |   |   | —  |   |   |   | 14,162 |   |
| Dry hole costs written off                                       |   |   | (5,599   | )      |   |   | (5,587 | ) |
| Transferred to property, plant and equipment                     |   |   | (158,586 | )      |   |   | (130,151 | ) |
| Reclassification to lease prepayments and other long-term assets |   |   | (11,718  | )      |   |   | (10,154 | ) |
| Impairment losses for the year                                   |   |   | (15      | )      |   |   | (10 | ) |
| Disposals                                                        |   |   | —  |   |   |   | (1,058 | ) |
| Exchange adjustments                                             |   |   | (34      | )      |   |   | 5 |   |
| Balance as of December 31                                        |   |   | 160,630  |   |   |   | 177,667 |   |
|                                                             |   |   |     |   |   |   |   |   |

|                                                                                                                                    |   | 2012   |   |   | 2013   |   |   | 2014   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                    |   | RMB    |   |   | RMB    |   |   | RMB    |   |
| At beginning of year.                                                                                                                   |   |   | 10,649 |   |   |   | 17,829 |   |   |   | 19,152 |   |
| Additions, net of amount that were capitalized and subsequently expensed in the same year, pending the determination of proved reserves |   |   | 14,083 |   |   |   | 9,603  |   |   |   | 9,480 |   |
| Transferred to oil and gas properties based on the determination of proved reserves                                                     |   |   | (1,108 | )      |   |   | (2,945 | )      |   |   | (3,891 | ) |
| Dry hole costs written off                                                                                                              |   |   | (5,795 | )      |   |   | (5,335 | )      |   |   | (5,455 | ) |
| At end of year                                                                                                                          |   |   | 17,829 |   |   |   | 19,152 |   |   |   | 19,286 |   |
|                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

|             |   | December 31, |   |
|------------------|--------|--------------|--------|
|             |   | 2012         |   |   | 2013 |   |   | 2014 |   |
|             |   | RMB          |   |   | RMB |   |   | RMB |   |
| One year or less |   |         | 11,931 |   |   |   | 9,893 |   |   |   | 9,743 |   |
| Over one year    |   |         | 5,898  |   |   |   | 9,259 |   |   |   | 9,543 |   |
|             |   |         | 17,829 |   |   |   | 19,152 |   |   |   | 19,286 |   |
|             |   |         |   |   |   |   |   |   |   |   |   |   |

----

| 17. | GOODWILL |
|-----|----------|

|                                |   | December31, |   |
|-------------------------------------|--------|-------------|--------|
|                                |   | 2013        |   |   | 2014 |   |
|                                |   | RMB         |   |   | RMB |   |
|                                |   |        |   |   |   |   |
| Cost                                |   |        | 13,912 |   |   |   | 13,938 |   |
| Less: accumulated impairment losses |   |        | (7,657 | ) |   |   | (7,657 | ) |
|                                |   |        | 6,255  |   |   |   | 6,281 |   |
|                                |   |        |   |   |   |   |   |   |

|                                                                         |   | December 31, |   |
|------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                         |   | 2013         |   |   | 2014 |   |
|                                                                         |   | RMB          |   |   | RMB |   |
| Sinopec Beijing Yanshan Branch (“Sinopec Yanshan”)               |   |         | 1,157  |   |   |   | 1,157 |   |
| Sinopec Zhenhai Refining and Chemical Branch (“Sinopec Zhenhai”) |   |         | 4,043  |   |   |   | 4,043 |   |
| Sinopec (Hong Kong) Limited                                                  |   |         | 853    |   |   |   | 853 |   |
| Multiple units without individually significant goodwill                     |   |         | 202    |   |   |   | 228 |   |
|                                                                         |   |         | 6,255  |   |   |   | 6,281 |   |
|                                                                         |   |         |   |   |   |   |   |   |

| 18. | INTEREST IN ASSOCIATES |
|-----|------------------------|

| 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 |
|-----------------------------------------------------------------------------|--------|----------------------------|--------|-------------------------------------------|--------|------------------------------------------|---------|--------|---------------------------------------------------------------|--------|----------------------|
|                                                                        |   |                       |   |                                      |   | %                                        |    |   | %                                                             |   |                 |
| Sinopec Finance Company Limited ("Sinopec Finance")                    |   | Incorporated               |   | Registered capital RMB 10,000             |   |                                     | 49.00   |   |                                                          |   | —              |   | Provision of non-banking financial services |
| China Aviation Oil Supply Company Limited ("China Aviation Oil")            |   | Incorporated               |   | Registered capital RMB 3,800              |   |                                     | — |   |                                                          |   | 29.00                |   | Marketing and distribution of refined petroleum products |
| Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy") |   | Incorporated               |   | Registered capital RMB 16,000             |   |                                     | — |   |                                                          |   | 38.75                |   | Manufacturing of coal-chemical products |

----

| Shanghai Chemical Industry Park Development Company Limited ("Shanghai Chemical") |   | Incorporated |   | Registered capital RMB 2,372 |   |   | — |   |   |   | 38.26   |   | Planning, development and operation of the Chemical Industry Park in Shanghai, the PRC |
|-----------------------------------------------------------------------------------|--------|--------------|--------|------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|----------------------------------------------------------------------------------------|
| Shanghai Petroleum Company Limited ("Shanghai Petroleum")                         |   | Incorporated |   | Registered capital RMB 900   |   |   | 30.00   |   |   |   | — |   | Exploration and production of crude oil and natural gas                                |

|                                                  |   | Sinopec Finance |     | China Aviation Oil |   | Zhongtian Synergetic Energy |     | Shanghai Chemical |   | Shanghai Petroleum |
|-------------------------------------------------------|--------|-----------------|----------|--------------------|--------|-----------------------------|----------|-------------------|--------|--------------------|
|                                                  |   | December 31,    |     | December 31,       |   | December 31,                |     | December 31,      |   | December 31,       |
|                                                  |   | 2013            |     |               | 2014   |                        |     | 2013              |   |               | 2014 |   |   | 2013 |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |
|                                                  |   | RMB             |     |               | RMB    |                        |     | RMB               |   |               | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Current assets                                        |   |            | 104,477  |               |   |                        | 108,999  |              |   |               | 15,410 |   |   |   | 13,816 |   |   |   | 4,474 |   |   |   | 6,833 |   |   |   | 3,094 |   |   |   | 2,466 |   |   |   | 2,849 |   |   |   | 2,783 |   |
| Non-current assets                                    |   |            | 17,490   |               |   |                        | 14,992   |              |   |               | 4,830 |   |   |   | 4,996 |   |   |   | 6,987 |   |   |   | 15,849 |   |   |   | 2,601 |   |   |   | 2,819 |   |   |   | 1,058 |   |   |   | 1,126 |   |
| Current liabilities                                   |   |            | (102,112 | )                  |   |                        | (105,289 | )                 |   |               | (12,249 | ) |   |   | (11,051 | ) |   |   | (335 | ) |   |   | (7,538 | ) |   |   | (1,183 | ) |   |   | (640 | ) |   |   | (281 | ) |   |   | (224 | ) |
| Non-current liabilities                               |   |            | (3,271   | )                  |   |                        | (104     | )                 |   |               | (233 | ) |   |   | (227 | ) |   |   | (1,330 | ) |   |   | (2,348 | ) |   |   | (1,102 | ) |   |   | (1,043 | ) |   |   | (354 | ) |   |   | (370 | ) |
| Net assets                                            |   |            | 16,584   |               |   |                        | 18,598   |              |   |               | 7,758 |   |   |   | 7,534 |   |   |   | 9,796 |   |   |   | 12,796 |   |   |   | 3,410 |   |   |   | 3,602 |   |   |   | 3,272 |   |   |   | 3,315 |   |
| Net assets attributable to non-controlling interests  |   |            | —  |               |   |                        | —  |              |   |               | 899 |   |   |   | 877 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net assets attributable to owners of the Company |   |            | 16,584   |               |   |                        | 18,598   |              |   |               | 6,859 |   |   |   | 6,657 |   |   |   | 9,796 |   |   |   | 12,796 |   |   |   | 3,410 |   |   |   | 3,602 |   |   |   | 3,272 |   |   |   | 3,315 |   |
| Share of net assets from associates              |   |            | 8,126    |               |   |                        | 9,113    |              |   |               | 1,989 |   |   |   | 1,998 |   |   |   | 3,796 |   |   |   | 4,958 |   |   |   | 980 |   |   |   | 1,043 |   |   |   | 982 |   |   |   | 995 |   |
| Carrying Amounts                                      |   |            | 8,126    |               |   |                        | 9,113    |              |   |               | 1,989 |   |   |   | 1,998 |   |   |   | 3,796 |   |   |   | 4,958 |   |   |   | 980 |   |   |   | 1,043 |   |   |   | 982 |   |   |   | 995 |   |

| Year ended December 31                                       |   | Sinopec Finance |    | China Aviation Oil |   | Zhongtian Synergetic Energy(i) |    | Shanghai Chemical |   | Shanghai Petroleum |
|--------------------------------------------------------------|--------|-----------------|---------|--------------------|--------|--------------------------------|---------|-------------------|--------|--------------------|
|                                                         |   | 2012            |    |               | 2013   |                           |    | 2014              |   |               | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |
|                                                         |   | RMB             |    |               | RMB    |                           |    | RMB               |   |               | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Operating revenues                                           |   |            | 3,329   |               |   |                           | 2,893   |              |   |               | 2,706 |   |   |   | 102,467 |   |   |   | 111,023 |   |   |   | 115,725 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 6 |   |   |   | 6 |   |   |   | 1 |   |   |   | 1,069 |   |   |   | 948 |   |   |   | 1,005 |   |
| Net income for the year                                      |   |            | 1,374   |               |   |                           | 1,409   |              |   |               | 2,522 |   |   |   | 1,790 |   |   |   | 2,027 |   |   |   | 1,097 |   |   |   | (47 | ) |   |   | — |   |   |   | — |   |   |   | 143 |   |   |   | 124 |   |   |   | 222 |   |   |   | 209 |   |   |   | 66 |   |   |   | 163 |   |
| Other comprehensive income / (loss)                          |   |            | 160     |               |   |                           | (608    | )                 |   |               | (508 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total comprehensive income                                   |   |            | 1,534   |               |   |                           | 801     |              |   |               | 2,014 |   |   |   | 1,790 |   |   |   | 2,027 |   |   |   | 1,097 |   |   |   | (47 | ) |   |   | — |   |   |   | — |   |   |   | 143 |   |   |   | 124 |   |   |   | 222 |   |   |   | 209 |   |   |   | 66 |   |   |   | 163 |   |
| Dividends declared by associates                             |   |            | — |               |   |                           | — |              |   |               | — |   |   |   | 414 |   |   |   | 444 |   |   |   | 309 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 17 |   |   |   | 11 |   |   |   | 90 |   |   |   | 60 |   |   |   | 36 |   |
| Share of net income / (loss) from associates            |   |            | 673     |               |   |                           | 690     |              |   |               | 1,236 |   |   |   | 442 |   |   |   | 513 |   |   |   | 318 |   |   |   | (18 | ) |   |   | — |   |   |   | — |   |   |   | 55 |   |   |   | 47 |   |   |   | 85 |   |   |   | 63 |   |   |   | 20 |   |   |   | 49 |   |
| Share of other comprehensive income / (loss) from associates |   |            | 79      |               |   |                           | (298    | )                 |   |               | (249 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |

| (i) | The main assets of Zhongtian Synergetic Energy was under construction during the year ended December 31, 2012, 2013 and 2014. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | The share of net income for the years ended December 31, 2012, 2013 and 2014 in all individually immaterial associates accounted for using equity method in aggregate were RMB 1,215, RMB 751 and RMB 1,160, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The share of other comprehensive income / (loss) for the years ended December 31, 2012, 2013 and 2014 in all individually immaterial associates accounted for using equity method in aggregate were RMB 1, RMB 1 and loss of RMB 57, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The carrying amount as of December 31, 2013 and 2014 of all individually immaterial associates acoounted for using equity method in aggregate were RMB 12,571 and RMB 14,012, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19. | INTEREST IN JOINT VENTURES |
|-----|----------------------------|

| Name of company                                          |   | Country of incorporation |   | 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 |   | Principal Place of Business                              |
|----------------------------------------------------------|--------|--------------------------|--------|-------------------------------------------|--------|------------------------------------------|---------|--------|---------------------------------------------------------------|--------|----------------------------|--------|----------------------------------------------------------|
|                                                     |   |                     |   |                                      |   | %                                        |    |   | %                                                             |   |                       |   |                                                     |
| Yanbu Aramco Sinopec Refining Company Ltd. ("YASREF")(i) |   | Saudi Arabia             |   | Registered capital USD 1,560              |   |                                     | — |   |                                                          |   | 37.50                      |   | Petroleum refining and processing business               |   | Saudi Arabia |
| BASF-YPC Company Limited ("BASF-YPC")                    |   | PRC                      |   | Registered capital RMB 12,343             |   |                                     | 30.00   |   |                                                          |   | 10.00                      |   | Manufacturing and distribution of petrochemical products |   | PRC |
| Caspian Investments Resources Ltd. ("CIR")(ii)           |   | British Virgin Islands   |   | Registered capital USD 10,000             |   |                                     | — |   |                                                          |   | 50.00                      |   | Crude oil and natural gas extraction                     |   | Kazakhstan |
| Taihu Limited ("Taihu")(ii)                              |   | Cyprus                   |   | Registered capital USD 25,000             |   |                                     | — |   |                                                          |   | 49.00                      |   | Crude oil and natural gas extraction                     |   | Russia |
| Mansarovar Energy Colombia Ltd. ("Mansarovar")(ii)       |   | British Bermuda          |   | Registered capital USD 12,000             |   |                                     | — |   |                                                          |   | 50.00                      |   | Crude oil and natural gas extraction                     |   | Colombia |

|                                                 |   | BASF-YPC         |    | CIR (ii) |            | Taihu (ii) |    | Mansarovar (ii)  |
|------------------------------------------------------|--------|------------------|---------|----------|-----------------|------------|---------|------------------|
|                                                 |   | December 31,2013 |    |     | December31,2014 |       |    | December 31,2013 |   |   | December31,2014 |   |   | December 31,2013 |   |   | December31,2014 |   |   | December 31,2013 |   |   | December31,2014 |   |
|                                                 |   | RMB              |    |     | RMB             |       |    | RMB              |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Current assets                                       |   |             |    |     |            |       |    |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                            |   |             | 550     |     |            |       | 1,112   |             |   |   | 4,820 |   |   |   | 4,873 |   |   |   | 166 |   |   |   | 117 |   |   |   | 346 |   |   |   | 580 |   |
| Other current assets                                 |   |             | 6,727   |     |            |       | 5,879   |             |   |   | 2,437 |   |   |   | 1,881 |   |   |   | 3,476 |   |   |   | 2,886 |   |   |   | 985 |   |   |   | 328 |   |
| Total current assets                                 |   |             | 7,277   |     |            |       | 6,991   |             |   |   | 7,257 |   |   |   | 6,754 |   |   |   | 3,642 |   |   |   | 3,003 |   |   |   | 1,331 |   |   |   | 908 |   |
| Non-current assets                                   |   |             | 18,496  |     |            |       | 17,209  |             |   |   | 14,244 |   |   |   | 13,078 |   |   |   | 14,796 |   |   |   | 7,995 |   |   |   | 10,739 |   |   |   | 9,702 |   |
| Current liabilities                                  |   |             |    |     |            |       |    |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current financial liabilities (iii)                  |   |             | (2,990  | )        |            |       | (3,318  | )                |   |   | (278 | ) |   |   | (272 | ) |   |   | (6,903 | ) |   |   | (1,228 | ) |   |   | (854 | ) |   |   | — |   |
| Other current liabilities                            |   |             | (2,027  | )        |            |       | (2,235  | )                |   |   | (1,764 | ) |   |   | (851 | ) |   |   | (2,065 | ) |   |   | (1,742 | ) |   |   | (776 | ) |   |   | (860 | ) |
| Total current liabilities                            |   |             | (5,017  | )        |            |       | (5,553  | )                |   |   | (2,042 | ) |   |   | (1,123 | ) |   |   | (8,968 | ) |   |   | (2,970 | ) |   |   | (1,630 | ) |   |   | (860 | ) |
| Non-current liabilities                              |   |             |    |     |            |       |    |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-current financial liabilities (iv)               |   |             | (4,904  | )        |            |       | (4,019  | )                |   |   | (956 | ) |   |   | (680 | ) |   |   | — |   |   |   | (2,905 | ) |   |   | — |   |   |   | — |   |
| Other non-current liabilities                        |   |             | (1      | )        |            |       | — |             |   |   | (1,545 | ) |   |   | (1,253 | ) |   |   | (3,354 | ) |   |   | (2,175 | ) |   |   | (4,120 | ) |   |   | (3,662 | ) |
| Total non-current liabilities                        |   |             | (4,905  | )        |            |       | (4,019  | )                |   |   | (2,501 | ) |   |   | (1,933 | ) |   |   | (3,354 | ) |   |   | (5,080 | ) |   |   | (4,120 | ) |   |   | (3,662 | ) |
| Net assets                                           |   |             | 15,851  |     |            |       | 14,628  |             |   |   | 16,958 |   |   |   | 16,776 |   |   |   | 6,116 |   |   |   | 2,948 |   |   |   | 6,320 |   |   |   | 6,088 |   |
| Net assets attributable to non-controlling interests |   |             | — |     |            |       | — |             |   |   | — |   |   |   | — |   |   |   | 211 |   |   |   | 102 |   |   |   | — |   |   |   | — |   |
| Net assets attributable to owners of the company     |   |             | 15,851  |     |            |       | 14,628  |             |   |   | 16,958 |   |   |   | 16,776 |   |   |   | 5,905 |   |   |   | 2,846 |   |   |   | 6,320 |   |   |   | 6,088 |   |
| Share of net assets from joint ventures              |   |             | 6,340   |     |            |       | 5,851   |             |   |   | 8,479 |   |   |   | 8,388 |   |   |   | 2,893 |   |   |   | 1,395 |   |   |   | 3,160 |   |   |   | 3,044 |   |
| Other (v)                                            |   |             | — |     |            |       | — |             |   |   | 579 |   |   |   | 616 |   |   |   | 1,455 |   |   |   | 814 |   |   |   | 3 |   |   |   | 85 |   |
| Carrying Amounts                                     |   |             | 6,340   |     |            |       | 5,851   |             |   |   | 9,058 |   |   |   | 9,004 |   |   |   | 4,348 |   |   |   | 2,209 |   |   |   | 3,163 |   |   |   | 3,129 |   |

| (i) | Pursuant to the resolution passed at the Directors' meeting held on October 31, 2014 and the purchase agreement entered into with relevant vendors, the Group completed the acquisition from the Sinopec Group Company a 37.5% equity interests in YASREF for a consideration of approximately USD 562 million (approximately RMB 3,439) and also injected capital of approximately USD 199 million (approximately RMB 1,216) to YASREF on December 31, 2014. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (ii) | The Group acquired from the Sinopec Group Company 50% of equity interests of Mansarovar in November 2013, 50% of equity interests of CIR and 49% of equity interests of Taihu in December 2013. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | Excluding trade accounts payable and other payables. |
|-------|------------------------------------------------------|

| (iv) | Excluding provisions. |
|------|-----------------------|

| (v) | Other reflects the excess of consideration transferred over the net fair value of identifiable assets acquired and liabilities assumed as of the acquisition date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Year ended December 31,                                     |   | BASF-YPC |    | CIR (ii) |   | Taihu (ii) |    | Mansarovar (ii) |
|------------------------------------------------------------------|--------|----------|---------|----------|--------|------------|---------|-----------------|
|                                                             |   | 2012     |    |     | 2013   |       |    | 2014            |   |   | 2014 |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |
|                                                             |   |     | RMB     |     |   | RMB        |    |            | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Operating revenues                                               |   |     | 22,938  |     |   |       | 23,176  |            |   |   | 22,191 |   |   |   | 8,366 |   |   |   | 18,183 |   |   |   | 360 |   |   |   | 3,781 |   |
| Depreciation, depletion and amortization                         |   |     | (1,983  | )        |   |       | (2,147  | )               |   |   | (15,649 | ) |   |   | (2,632 | ) |   |   | (1,501 | ) |   |   | (88 | ) |   |   | (1,870 | ) |
| Interest income                                                  |   |     | 28      |     |   |       | 20      |            |   |   | 26 |   |   |   | 8 |   |   |   | — |   |   |   | — |   |   |   | 31 |   |
| Interest expense                                                 |   |     | (388    | )        |   |       | (319    | )               |   |   | (356 | ) |   |   | — |   |   |   | (54 | ) |   |   | (7 | ) |   |   | — |   |
| Earning before income tax                                        |   |     | 939     |     |   |       | 1,060   |            |   |   | 373 |   |   |   | 7 |   |   |   | 3,014 |   |   |   | 130 |   |   |   | 641 |   |
| Tax expense                                                      |   |     | (240    | )        |   |       | (279    | )               |   |   | (94 | ) |   |   | (252 | ) |   |   | (809 | ) |   |   | (50 | ) |   |   | (897 | ) |
| Net income for the year                                          |   |     | 699     |     |   |       | 781     |            |   |   | 279 |   |   |   | (245 | ) |   |   | 2,205 |   |   |   | 80 |   |   |   | (256 | ) |
| Other comprehensive income / (loss)                              |   |     | — |     |   |       | — |            |   |   | — |   |   |   | 63 |   |   |   | (5,373 | ) |   |   | — |   |   |   | 24 |   |
| Total comprehensive income / (loss)                              |   |     | 699     |     |   |       | 781     |            |   |   | 279 |   |   |   | (182 | ) |   |   | (3,168 | ) |   |   | 80 |   |   |   | (232 | ) |
| Dividends declared by a joint venture                            |   |     | 1,061   |     |   |       | — |            |   |   | 933 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Share of net income / (loss) from joint ventures                 |   |     | 280     |     |   |       | 312     |            |   |   | 112 |   |   |   | (123 | ) |   |   | 1,043 |   |   |   | 40 |   |   |   | (128 | ) |
| Share of other comprehensive income / (loss) from joint ventures |   |     | — |     |   |       | — |            |   |   | — |   |   |   | 32 |   |   |   | (2,541 | ) |   |   | — |   |   |   | 12 |   |

| 20. | AVAILABLE-FOR-SALE FINANCIAL ASSETS |
|-----|-------------------------------------|

|                                                              |   | December 31, |   |
|-------------------------------------------------------------------|--------|--------------|--------|
|                                                              |   | 2013         |   |   | 2014 |   |
|                                                              |   | RMB          |   |   | RMB |   |
| Equity securities, listed and at quoted market price (Note 10(i)) |   |         | 1,964  |   |   |   | 183 |   |
| Other investment, unlisted and at cost                            |   |         | 1,834  |   |   |   | 714 |   |
|                                                              |   |         | 3,798  |   |   |   | 897 |   |
| Less: Impairment losses for investments                           |   |         | (68    | ) |   |   | (29 | ) |
|                                                              |   |         | 3,730  |   |   |   | 868 |   |
|                                                              |   |         |   |   |   |   |   |   |

----

| 21. | DEFERRED TAX ASSETS AND LIABILITIES |
|-----|-------------------------------------|

|                                                   |   | Assets       |    |   | Liabilities  |   |   | Net balance  |   |
|--------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|--------|--------------|--------|
|                                                   |   | December 31, |    |   | December 31, |   |   | December 31, |   |
|                                                   |   | 2013         |    |   | 2014         |   |   | 2013         |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |
|                                                   |   | RMB          |    |   | RMB          |   |   | RMB          |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Current                                                |   |         |    |   |         |   |   |         |   |   |   |   |   |   |   |   |   |   |
| Receivables and inventories                            |   |         | 3,315   |   |         |   | 2,883  |         |   |   | — |   |   | - |   |   |   | 3,315 |   |   |   | 2,883 |   |
| Accruals                                               |   |         | 357     |   |         |   | 258    |         |   |   | — |   |   | - |   |   |   | 357 |   |   |   | 258 |   |
| Cash flow hedges                                       |   |         | 34      |   |         |   | 887    |         |   |   | (120 | ) |   | - |   |   |   | (86 | ) |   |   | 887 |   |
| Non-current                                            |   |         |    |   |         |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment                          |   |         | 7,200   |   |         |   | 7,752  |         |   |   | (15,590 | ) |   |   | (16,387 | ) |   |   | (8,390 | ) |   |   | (8,635 | ) |
| Tax losses carried forward                             |   |         | 2,261   |   |         |   | 3,474  |         |   |   | — |   |   | - |   |   |   | 2,261 |   |   |   | 3,474 |   |
| Embedded derivative component of the convertible bonds |   |         | — |   |         |   | 282    |         |   |   | (870 | ) |   | - |   |   |   | (870 | ) |   |   | 282 |   |
| Available-for-sale securities                          |   |         | — |   |         |   | 7      |         |   |   | (436 | ) |   |   | (4 | ) |   |   | (436 | ) |   |   | 3 |   |
| Others                                                 |   |         | 99      |   |         |   | 86     |         |   |   | (86 | ) |   |   | (79 | ) |   |   | 13 |   |   |   | 7 |   |
| Deferred tax assets / (liabilities)                    |   |         | 13,266  |   |         |   | 15,629 |         |   |   | (17,102 | ) |   |   | (16,470 | ) |   |   | (3,836 | ) |   |   | (841 | ) |
|                                                   |   |         |    |   |         |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                   |   | Balance as of January 1, 2012 |   |   | Recognized in consolidated statement of income |   |    | Recognized in other comprehensive income |   |   | Balance as of December 31, 2012 |   |
|--------------------------------------------------------|--------|-------------------------------|--------|--------|------------------------------------------------|--------|---------|------------------------------------------|--------|--------|---------------------------------|--------|
|                                                   |   | RMB                           |   |   | RMB                                            |   |    | RMB                                      |   |   | RMB                             |   |
|                                                   |   |                          |   |   |                                           |   |    |                                     |   |   |                            |   |
| Current                                                |   |                          |   |   |                                           |   |    |                                     |   |   |                            |   |
| Receivables and inventories                            |   |                          | 3,105  |   |                                           |   | 187     |                                     |   |   | —                         |   |   |   | 3,292 |   |
| Accruals                                               |   |                          | 1,844  |   |                                           |   | (1,423  | )                                        |   |   | —                         |   |   |   | 421 |   |
| Cash flow hedges                                       |   |                          | 7      |   |                                           |   | — |                                     |   |   | 29                              |   |   |   | 36 |   |
| Non-current                                            |   |                          |   |   |                                           |   |    |                                     |   |   |                            |   |   |   |   |   |
| Property, plant and equipment                          |   |                          | (8,622 | )      |                                           |   | 413     |                                     |   |   | 15                              |   |   |   | (8,194 | ) |
| Tax losses carried forward                             |   |                          | 1,550  |   |                                           |   | 1,501   |                                     |   |   | —                         |   |   |   | 3,051 |   |
| Embedded derivative component of the convertible bonds |   |                          | (379   | )      |                                           |   | 15      |                                     |   |   | —                         |   |   |   | (364 | ) |
| Available-for-sale securities                          |   |                          | (3     | )      |                                           |   | — |                                     |   |   | —                         |   |   |   | (3 | ) |
| Others                                                 |   |                          | 23     |   |                                           |   | (17     | )                                        |   |   | —                         |   |   |   | 6 |   |
| Net deferred tax liabilities                           |   |                          | (2,475 | )      |                                           |   | 676     |                                     |   |   | 44                              |   |   |   | (1,755 | ) |
|                                                   |   |                          |   |   |                                           |   |    |                                     |   |   |                            |   |   |   |   |   |

|                                                   |   | Balance as of January 1, 2013 |   |   | Recognized in consolidated statement of income |   |    | Recognized in other comprehensive income |   |   | Balance as of December 31, 2013 |   |
|--------------------------------------------------------|--------|-------------------------------|--------|--------|------------------------------------------------|--------|---------|------------------------------------------|--------|--------|---------------------------------|--------|
|                                                   |   | RMB                           |   |   | RMB                                            |   |    | RMB                                      |   |   | RMB                             |   |
| Current                                                |   |                          |   |   |                                           |   |    |                                     |   |   |                            |   |
| Receivables and inventories                            |   |                          | 3,292  |   |                                           |   | 23      |                                     |   |   | —                         |   |   |   | 3,315 |   |
| Accruals                                               |   |                          | 421    |   |                                           |   | (64     | )                                        |   |   | —                         |   |   |   | 357 |   |
| Cash-flow hedges                                       |   |                          | 36     |   |                                           |   | (2      | )                                        |   |   | (120                            | )      |   |   | (86 | ) |
| Non-current                                            |   |                          |   |   |                                           |   |    |                                     |   |   |                            |   |   |   |   |   |
| Property, plant and equipment                          |   |                          | (8,194 | )      |                                           |   | (388    | )                                        |   |   | 192                             |   |   |   | (8,390 | ) |
| Tax losses carried forward                             |   |                          | 3,051  |   |                                           |   | (790    | )                                        |   |   | —                         |   |   |   | 2,261 |   |
| Embedded derivative component of the convertible bonds |   |                          | (364   | )      |                                           |   | (506    | )                                        |   |   | —                         |   |   |   | (870 | ) |
| Available-for-sale securities                          |   |                          | (3     | )      |                                           |   | — |                                     |   |   | (433                            | )      |   |   | (436 | ) |
| Others                                                 |   |                          | 6      |   |                                           |   | 7       |                                     |   |   | —                         |   |   |   | 13 |   |
| Net deferred tax liabilities                           |   |                          | (1,755 | )      |                                           |   | (1,720  | )                                        |   |   | (361                            | )      |   |   | (3,836 | ) |
|                                                   |   |                          |   |   |                                           |   |    |                                     |   |   |                            |   |   |   |   |   |

|                                                   |   | Balance as of January 1, 2014 |   |   | Recognized in consolidated statement of income |   |    | Recognized in other comprehensive income |   |   | Others  |   |   | Balance as of Decembe 31, 2014 |    |
|--------------------------------------------------------|--------|-------------------------------|--------|--------|------------------------------------------------|--------|---------|------------------------------------------|--------|--------|---------|--------|--------|--------------------------------|---------|
|                                                   |   | RMB                           |   |   | RMB                                            |   |    | RMB                                      |   |   | RMB     |   |   | RMB                            |    |
| Current                                                |   |                          |   |   |                                           |   |    |                                     |   |   |    |   |   |                           |    |
| Receivables and inventories                            |   |                          | 3,315  |   |                                           |   | (432    | )                                        |   |   | — |   |   |                           | — |   |   |   | 2,883 |   |
| Accruals                                               |   |                          | 357    |   |                                           |   | (99     | )                                        |   |   | — |   |   |                           | — |   |   |   | 258 |   |
| Cash-flow hedges                                       |   |                          | (86    | )      |                                           |   | — |                                     |   |   | 973     |   |   |                           | — |   |   |   | 887 |   |
| Non-current                                            |   |                          |   |   |                                           |   |    |                                     |   |   |    |   |   |                           |    |   |   |   |   |   |
| Property, plant and equipment                          |   |                          | (8,390 | )      |                                           |   | (42     | )                                        |   |   | (21     | )      |   |                           | (182    | ) |   |   | (8,635 | ) |
| Tax losses carried forward                             |   |                          | 2,261  |   |                                           |   | 1,213   |                                     |   |   | — |   |   |                           | — |   |   |   | 3,474 |   |
| Embedded derivative component of the convertible bonds |   |                          | (870   | )      |                                           |   | 1,152   |                                     |   |   | — |   |   |                           | — |   |   |   | 282 |   |
| Available-for-sale securities                          |   |                          | (436   | )      |                                           |   | 6       |                                     |   |   | 433     |   |   |                           | — |   |   |   | 3 |   |
| Others                                                 |   |                          | 13     |   |                                           |   | (6      | )                                        |   |   | — |   |   |                           | — |   |   |   | 7 |   |
| Net deferred tax liabilities                           |   |                          | (3,836 | )      |                                           |   | 1,792   |                                     |   |   | 1,385   |   |   |                           | (182    | ) |   |   | (841 | ) |
|                                                   |   |                          |   |   |                                           |   |    |                                     |   |   |    |   |   |                           |    |   |   |   |   |   |

----

| 22. | LEASE PREPAYMENTS |
|-----|-------------------|

|                                      |   | 2013   |   |   | 2014   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                      |   | RMB    |   |   | RMB    |   |
| Cost:                                     |   |   |   |   |   |   |
| Balance at January 1                      |   |   | 43,002 |   |   |   | 51,417 |   |
| Additions                                 |   |   | 717    |   |   |   | 904 |   |
| Transferred from construction in progress |   |   | 6,697  |   |   |   | 4,693 |   |
| Transferred from other long-term assets   |   |   | 1,214  |   |   |   | 4,408 |   |
| Reclassification to other assets          |   |   | (34    | )      |   |   | (1,324 | ) |
| Disposals                                 |   |   | (86    | )      |   |   | (247 | ) |
| Exchange adjustments                      |   |   | (93    | )      |   |   | 10 |   |
| Balance at December 31                    |   |   | 51,417 |   |   |   | 59,861 |   |
| Accumulated amortization:                 |   |   |   |   |   |   |   |   |
| Balance at January 1                      |   |   | 6,762  |   |   |   | 8,147 |   |
| Amortization charge for the year          |   |   | 1,288  |   |   |   | 1,504 |   |
| Transferred from other long-term assets   |   |   | 155    |   |   |   | 1,279 |   |
| Reclassification to other assets          |   |   | (5     | )      |   |   | (186 | ) |
| Written back on disposals                 |   |   | (33    | )      |   |   | (22 | ) |
| Exchange adjustments                      |   |   | (20    | )      |   |   | 3 |   |
| Balance at December 31                    |   |   | 8,147  |   |   |   | 10,725 |   |
| Net book value:                           |   |   | 43,270 |   |   |   | 49,136 |   |
|                                      |   |   |   |   |   |   |   |   |

| 23. | LONG-TERM PREPAYMENTS AND OTHER ASSETS |
|-----|----------------------------------------|

|                                                                                       |   | 2013   |   |   | 2014   |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                       |   | RMB    |   |   | RMB    |   |
| Operating rights of service stations                                                       |   |   |   |   |   |   |
| Cost:                                                                                      |   |   |   |   |   |   |
| Balance at January 1                                                                       |   |   | 11,851 |   |   |   | 15,840 |   |
| Additions                                                                                  |   |   | 4,136  |   |   |   | 17,038 |   |
| Decreases                                                                                  |   |   | (147   | )      |   |   | (130 | ) |
| Balance at December 31                                                                     |   |   | 15,840 |   |   |   | 32,748 |   |
| Accumulated amortization:                                                                  |   |   |   |   |   |   |   |   |
| Balance at January 1                                                                       |   |   | 1,396  |   |   |   | 2,213 |   |
| Additions                                                                                  |   |   | 830    |   |   |   | 4,477 |   |
| Decreases                                                                                  |   |   | (13    | )      |   |   | (17 | ) |
| Balance at December 31                                                                     |   |   | 2,213  |   |   |   | 6,673 |   |
| Net book value at December 31                                                              |   |   | 13,627 |   |   |   | 26,075 |   |
| Other assets                                                                               |   |   |   |   |   |   |   |   |
| Long-term receivables from and prepayment to Sinopec Group Company and fellow subsidiaries |   |   | 11,378 |   |   |   | 14,935 |   |
| Prepayments for construction projects to third parties                                     |   |   | 4,764  |   |   |   | 4,944 |   |
| Others                                                                                     |   |   | 17,198 |   |   |   | 20,261 |   |
| Balance at December 31                                                                     |   |   | 46,967 |   |   |   | 66,215 |   |
|                                                                                       |   |   |   |   |   |   |   |   |

----

| 24. | SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES |
|-----|---------------------------------------------------------------------------------------------|

|                                                     |   | December 31, |
|----------------------------------------------------------|--------|--------------|
|                                                     |   | 2013         |   |   | 2014 |   |
|                                                     |   | RMB          |   |   | RMB |   |
| Third parties’ debts                               |   |         |   |   |   |   |
| Short-term bank loans                                    |   |         | 54,640 |   |   |   | 63,915 |   |
| RMB denominated                                          |   |         | 19,983 |   |   |   | 22,805 |   |
| US Dollar denominated                                    |   |         | 34,657 |   |   |   | 40,685 |   |
| Euro denominated                                         |   |         | — |   |   |   | 425 |   |
| Current portion of long-term bank loans                  |   |         | 1,093 |   |   |   | 268 |   |
| RMB denominated                                          |   |         | 371 |   |   |   | 163 |   |
| Japanese Yen denominated                                 |   |         | 60 |   |   |   | 54 |   |
| US Dollar denominated                                    |   |         | 662 |   |   |   | 51 |   |
| Current portion of long-term corporate bonds             |   |         | 3,500 |   |   |   | 11,000 |   |
| RMB denominated                                          |   |         | 3,500 |   |   |   | 11,000 |   |
| Current portion of convertible bonds                     |   |         | 40,573 |   |   |   | — |   |
|                                                     |   |         | 45,166 |   |   |   | 11,268 |   |
| Corporate bonds (i)                                      |   |         | 10,000 |   |   |   | — |   |
|                                                     |   |         | 109,806 |   |   |   | 75,183 |   |
| Loans from Sinopec Group Company and fellow subsidiaries |   |         |   |   |   |   |   |   |
| Short-term loans                                         |   |         | 53,481 |   |   |   | 102,773 |   |
| RMB denominated                                          |   |         | 7,251 |   |   |   | 9,628 |   |
| US Dollar denominated                                    |   |         | 46,225 |   |   |   | 93,126 |   |
| Hong Kong Dollar denominated                             |   |         | 5 |   |   |   | 5 |   |
| Euro denominated                                         |   |         | — |   |   |   | 14 |   |
| Current portion of long-term loans                       |   |         | 583 |   |   |   | 192 |   |
| RMB denominated                                          |   |         | 555 |   |   |   | 80 |   |
| US Dollar denominated                                    |   |         | 28 |   |   |   | 112 |   |
|                                                     |   |         | 54,064 |   |   |   | 102,965 |   |
|                                                     |   |         | 163,870 |   |   |   | 178,148 |   |
|                                                     |   |         |   |   |   |   |   |   |

|                       |   | Interest rate and final maturity                                                                                              |   | December 31, |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------|
|                       |   |                                                                                                                          |   | 2013         |   |   | 2014 |   |
|                       |   |                                                                                                                          |   | RMB          |   |   | RMB |   |
| Third parties’ debts |   |                                                                                                                          |   |         |   |   |   |   |
| Long-term bank loans       |   |                                                                                                                          |   |         |   |   |   |   |
| Renminbi denominated       |   | Interest rates ranging from interest free to 7.4% per annum as of December 31, 2014 with maturities through 2025              |   |         | 7,712 |   |   |   | 23,001 |   |
| Japanese Yen denominated   |   | Interest rates at 2.6% per annum as of  December31, 2014 with maturities in 2023                                    |   |         | 561 |   |   |   | 445 |   |
| US Dollar denominated      |   | Interest rates ranging from interest free to 4.29 % per annum as of December 31,  2014 with maturities through 2031 |   |         | 916 |   |   |   | 1,103 |   |
|                       |   |                                                                                                                          |   |         | 9,189 |   |   |   | 24,549 |   |
|                       |   |                                                                                                                          |   |         |   |   |   |   |   |   |

----

| Corporate bonds       |   |                                                                                                                 |   |   |   |   |   |   |
|-----------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                  |   |                                                                                                                 |   |   |   |   |   |   |
| Renminbi denominated  |   | Fixed interest rates ranging from 3.75% to 5.68% per annum as of December 31, 2014 with maturities through 2022 (ii) |   |   | 60,000 |   |   |   | 56,500 |   |
| US Dollar denominated |   | Fixed interest rates ranging from 1.25 % to 4.25 % per annum as of December 31, 2014 with maturities through 2043    |   |   | 21,177 |   |   |   | 21,285 |   |
|                  |   |                                                                                                                 |   |   | 81,177 |   |   |   | 77,785 |   |
|                  |   |                                                                                                                 |   |   |   |   |   |   |   |   |

|                                       |   |                                           |    |         |    |   |    |   |
|--------------------------------------------|--------|------------------------------------------------|---------|--------------|---------|--------|---------|--------|
|                                       |   |                                           |    |
|                                       |   | Interest rate and final maturity               |    | December 31, |
|                                       |   |                                           |    | 2013         |    |   | 2014    |   |
|                                       |   |                                           |    | RMB          |    |   | RMB     |   |
|                                       |   |                                           |    |         |    |   |    |   |
| Convertible bonds                          |   |                                           |    |         |    |   |    |   |
| Hong Kong Dollar denominated               |   | Convertible bonds with maturity in 2014 (iii)  |    |         | 10,948  |   |    |   | — |   |
|                                       |   |                                           |    |         |    |   |    |   |   |   |
| Renminbi denominated                       |   | Bonds with Warrants with maturity in 2014 (iv) |    |         | 29,625  |   |    |   | — |   |
|                                       |   | Convertible Bonds with maturity in 2017 (v)    |    |         | 21,461  |   |    |   | 16,721 |   |
|                                       |   |                                           |    |         | 62,034  |   |    |   | 16,721 |   |
|                                       |   |                                           |    |         |    |   |    |   |   |   |
| Total third parties’ long-term debts |   |                                           | 152,400 |         |    |   | 119,055 |   |
|                                       |   |                                           |    |         |    |   |    |   |   |   |
| Less: Current portion                      |   |                                           |    |         | (45,166 | )      |    |   | (11,268 | ) |
|                                       |   |                                           |    |         | 107,234 |   |    |   | 107,787 |   |

| Long-term loans from Sinopec Group Company and fellow subsidiaries |   |
|--------------------------------------------------------------------|--------|
|                                                               |   |   |   |   |   |   |   |   |
| Renminbi denominated                                               |   | Interest rates ranging from interest free to 6.46% per annum as of December 31, 2014 with maturities through 2020 |   |   | 38,911 |   |   |   | 43,225 |   |
| US Dollar denominated                                              |   | Interest rates ranging from 0.74 % to 1.85% per annum as of December 31, 2014 with maturities in 2015 |   |   | 28 |   |   |   | 112 |   |
| Less: Current portion                                              |   |   |   |   | (583 | ) |   |   | (192 | ) |
|                                                               |   |   |   |   | 38,356 |   |   |   | 43,145 |   |
|                                                               |   |   |   |   | 145,590 |   |   |   | 150,932 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |

| (i) | The Company issued 180-day corporate bonds of face value RMB 10 billion to corporate investors in the PRC debenture market on May 19, 2014 at par value of RMB 100. The effective yield of the 180-day corporate bonds is 4.40% per annum. The short-term bonds were due on November 16, 2014 and were fully paid by the Group at maturity. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company issued 270-day corporate bonds of face value RMB 10 billion to corporate investors in the PRC debenture market on August 15, 2013 at par value of RMB 100. The effective yield of the 270-day corporate bonds is 4.49% per annum. The short-term bonds were due on May 13, 2014 and have been fully paid by the Group at maturity. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | These corporate bonds are guaranteed by Sinopec Group Company and carried at amortized cost. |
|------|----------------------------------------------------------------------------------------------|

----

| (iii) | On April 24, 2007, the Company issued zero coupon convertible bonds due 2014 with an aggregate principal amount of HKD 11,700 (the “2007 Convertible Bonds”). The holders can convert the 2007 Convertible Bonds into shares of the Company from June 4, 2007 onwards at a price of HKD10.76 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 Option”). Unless previously redeemed, converted or purchased and cancelled, the 2007 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”). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the year ended December 31, 2011, the Company redeemed part of the 2007 Convertible Bonds upon certain holders’ request, with the principal amount of HKD 39. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of December 31, 2013, the carrying amount of the liability component and the derivative component, representing the Conversion Option, the Early Redemption Option was RMB 10,948. No conversion of the 2007 Convertible Bonds has occurred up to December 31, 2013. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The 2007 Convertible Bonds were due on April 24, 2014 and have been fully paid by the Group at maturity. |
|--------|----------------------------------------------------------------------------------------------------------|

|   | The changes in the fair value of the derivative component from December 31, 2012 to December 31, 2013 and from December 31, 2013 to April 24, 2014 resulted in an unrealized gain of RMB 114 and a realized loss of RMB1, respectively, which has been recorded under “finance costs” in the consolidated statement of income. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The initial carrying amount of the liability component of the 2007 Convertible Bonds is the residual amount, which is after deducting the allocated issuance cost of the 2007 Convertible Bonds relating to the liability component and the fair value of the derivative component as of April 24, 2007. Interest expense is calculated using the effective interest method by applying the effective interest rate of 4.19% to the adjusted liability component. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | 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. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The initial recognition of the liability component of the Bond with Warrants is measured at the present value of the future interest and principal payments, discounted at the market rate of interest applicable at the time of initial recognition to similar liabilities that do not have a conversion option. Interest expense is calculated using the effective interest method by applying the market interest rate of 5.40% to the liability component. On March 4, 2010, warrants of the bonds have already expired. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Bonds with Warrants were due on February 20, 2014 and have been fully paid by the Group at maturity. |
|--------|----------------------------------------------------------------------------------------------------------|

| (v) | On March 1, 2011, the Company issued convertible bonds due 2017 with an aggregate principal amount of RMB 23,000 in the PRC (the “2011 Convertible Bonds”). The 2011 Convertible Bonds were issued at par value of RMB 100 and bear a fixed interest rate of 0.5% per annum for the first year, 0.7% for the second year, 1.0% for the third year, 1.3% for the fourth year, 1.8% for the fifth year and 2.0% for the sixth year, payable annually. The holders can convert the 2011 Convertible Bonds into shares of the Company from August 24, 2011 onwards at an initial conversion price of RMB 9.73 per share, subject to adjustment for, amongst other things, cash dividends, subdivision or consolidation of shares, bonus issues, issue of new shares, rights issues, capital distribution, change of control and other events which have an effect on the issued share capital of the Company (“the Conversion Option”). Unless previously redeemed, converted or purchased and cancelled, the 2011 Convertible Bonds will be redeemed within 5 trading days after maturity at 107% of the principal amount, including interest for the sixth year. The initial carrying amounts of the liability component and the derivative component, representing the Conversion Option of the 2011 Convertible Bonds, were RMB 19,279 and RMB 3,610, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | During the term of the 2011 Convertible Bonds, the conversion price may be subject to downward adjustment that if the closing prices of the Company’s A Shares in any fifteen trading days out of any thirty consecutive trading days are lower than 80% of the prevailing conversion price, the board of directors may propose downward adjustment to the conversion price subject to the shareholders’ approval. The adjusted conversion price shall be not less than (a) the average trading price of the Company’s A Shares for the twenty trading days prior to the shareholders’ approval, (b) the average trading price of the Company’s A Shares on the day immediately before the shareholders’ approval, (c) the net asset value per share based on the latest audited financial statements prepared under ASBE, and (d) the nominal value per share. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the term of the 2011 Convertible Bonds, if the closing price of the A Shares of the Company is not lower than 130% of the conversion price in at least 15 trading days out of any 30 consecutive trading days, the Company has the right to redeem all or part of the 2011 Convertible Bonds based on the nominal value plus the accrued interest ("the terms of conditional redemption"). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of December 31, 2014, the carrying amount of the liability component and the derivative component were RMB 13,433 and RMB 3,288, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of December 31, 2013, the carrying amount of the liability component and the derivative component, were RMB 20,913 and RMB 548 respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the year ended December 31, 2014, the conversion price of the 2011 Convertible Bonds was adjusted to RMB 4.89 per share as a result of cash dividends, bonus issues and capitalization. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the year ended December 31, 2011, RMB 328 thousand of the 2011 Convertible Bonds were converted into 34,662 A shares of the Company. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the year ended December 31, 2012, RMB 857,033 thousand of the 2011 Convertible Bonds were converted into 117,724,450 A shares of the Company. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the year ended December 31, 2013, RMB 725 thousand of the 2011 Convertible Bonds were converted into 114,076 A shares of the Company. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the year ended December 31, 2014, RMB 8,442 of the 2011 Convertible Bonds were converted into 1,715,081,853 A shares of the Company. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of December 31, 2013 and 2014, the fair value of the derivative component of the 2011 Convertible Bonds was calculated using the Binomial Model. The followings are the major inputs used in the Binomial Model: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                    | 2013            |   | 2014             |
|-------------------------|-----------------|--------|------------------|
|                    |            |   |             |
| Stock price of A shares | RMB 4.48        |   | RMB 6.49         |
| Conversion price        | RMB 5.13        |   | RMB 4.89         |
| Credit spread           | 95 basis points |   | 133 basis points |
| RMB onshore swap rate   | 5.23%           |   | 3.40%            |

|   | Any change in the major inputs into the Binomial Model will result in changes in the fair value of the derivative component. The changes in the fair value of the derivative component from December 31, 2012 to December 31, 2013 resulted in an unrealized gain of RMB 1,914, and from December 31, 2013 to December 31, 2014 resulted in a realized loss of RMB 1,613 and an unrealized loss of RMB 2,997, respectively, which have been recorded in the “finance costs” section of the consolidated statement of income. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The initial carrying amount of the liability component of the 2011 Convertible Bonds is the residual amount, after deducting the allocated issuance cost of the 2011 Convertible Bonds relating to the liability component and the fair value of the derivative component as of March 1, 2011. Interest expense is calculated using the effective interest method by applying the effective interest rate of 5.10% to the adjusted liability component. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | As of January 26, 2015, the terms of conditional redemption of 2011 Convertible Bonds of the Company have been triggered for the first time. At the 22nd meeting of the fifth session of the board of the Company (the “Board”), the Board has reviewed and approved the proposal for the redemption of 2011 Convertible Bonds, and decided to exercise the right of redemption and to redeem all of the outstanding 2011 Convertible Bonds registered on February 11, 2015. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | From January 1, 2015 to February 11, 2015, the 2011 Convertible Bonds with a total value of RMB 13,647 were converted into 2,790,814,006 A shares of the Company. As of  February 11, 2015, the total share capital of the Company has been increased to 121,071,209,646 shares. The unconverted convertible bonds amounted to RMB 52.78 (527,760 convertible bonds). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of February 17, 2015, the Company has redeemed and fully paid the unconverted portion at RMB 101.261 per convertible bond (including the accrued interest and interest tax accrued thereon). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25 | TRADE ACCOUNTS AND BILLS PAYABLE |
|----|----------------------------------|

|                                                         |   | December 31, |
|--------------------------------------------------------------|--------|--------------|
|                                                         |   | 2013         |   |   | 2014 |   |
|                                                         |   | RMB          |   |   | RMB |   |
| Amounts due to third parties                                 |   |         | 192,082 |   |   |   | 181,519 |   |
| Amounts due to Sinopec Group Company and fellow subsidiaries |   |         | 8,114 |   |   |   | 13,575 |   |
| Amounts due to associates and joint ventures                 |   |         | 2,528 |   |   |   | 3,272 |   |
|                                                         |   |         | 202,724 |   |   |   | 198,366 |   |
| Bills payable                                                |   |         | 4,526 |   |   |   | 4,577 |   |
| Trade accounts and bills payable measured at amortized cost  |   |         | 207,250 |   |   |   | 202,943 |   |
|                                                         |   |         |   |   |   |   |   |   |

| 26. | ACCRUED EXPENSES AND OTHER PAYABLES |
|-----|-------------------------------------|

|                                             |   | December 31, |
|--------------------------------------------------|--------|--------------|
|                                             |   | 2013         |   |   | 2014 |   |
|                                             |   | RMB          |   |   | RMB |   |
| Salaries and welfare payable                     |   |         | 818 |   |   |   | 839 |   |
| Interest payable                                 |   |         | 2,290 |   |   |   | 1,695 |   |
| Other payables                                   |   |         | 78,003 |   |   |   | 83,047 |   |
| Financial liabilities carried at amortized costs |   |         | 81,111 |   |   |   | 85,581 |   |
| Taxes other than income tax                      |   |         | 32,792 |   |   |   | 27,586 |   |
| Receipts in advance                              |   |         | 81,079 |   |   |   | 89,918 |   |
| Derivative financial instruments                 |   |         | 2,624 |   |   |   | 18,990 |   |
|                                             |   |         | 197,606 |   |   |   | 222,075 |   |
|                                             |   |         |   |   |   |   |   |   |

| 27. | PROVISIONS |
|-----|------------|

|                      |   | 2012   |   |   | 2013   |   |   | 2014   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                      |   | RMB    |   |   | RMB    |   |   | RMB    |   |
| Balance as of January 1   |   |   | 18,317 |   |   |   | 21,525 |   |   |   | 26,004 |   |
| Provision for the year    |   |   | 2,833  |   |   |   | 4,188  |   |   |   | 3,309 |   |
| Accretion expenses        |   |   | 856    |   |   |   | 877    |   |   |   | 1,008 |   |
| Utilized                  |   |   | (480   | )      |   |   | (561   | )      |   |   | (714 | ) |
| Exchange adjustments      |   |   | (1     | )      |   |   | (25    | )      |   |   | 6 |   |
| Balance as of December 31 |   |   | 21,525 |   |   |   | 26,004 |   |   |   | 29,613 |   |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |

----

| 28. | SHARE CAPITAL |
|-----|---------------|

|                                                                   |   | December 31, |
|------------------------------------------------------------------------|--------|--------------|
|                                                                   |   | 2013         |   |   | 2014 |   |
|                                                                   |   | RMB          |   |   | RMB |   |
| Registered, issued and fully paid                                      |   |         |   |   |   |   |
| 92,766,957,040 listed A shares (2013: 91,051,875,187) of RMB 1.00 each |   |         | 91,052 |   |   |   | 92,767 |   |
| 25,513,438,600 listed H shares (2013: 25,513,438,600) of RMB 1.00 each |   |         | 25,513 |   |   |   | 25,513 |   |
|                                                                   |   |         | 116,565 |   |   |   | 118,280 |   |
|                                                                   |   |         |   |   |   |   |   |   |

----

----

| 29. | RESERVES |
|-----|----------|

|                                                                                      |   | 2013   |    |   | 2014   |   |
|-------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                      |   | RMB    |    |   | RMB    |   |
| Capital reserve (Note (a))                                                                |   |   |    |   |   |   |
| Balance as of January 1                                                                   |   |   | (33,307 | )      |   |   | (33,713 | ) |
| Contribution to subsidiaries from non-controlling interests                               |   |   | 600     |   |   |   | — |   |
| Non-tradable shares reform                                                                |   |   | (986    | )      |   |   | — |   |
| Acquisitions of non-controlling interests of subsidiaries                                 |   |   | (20     | )      |   |   | — |   |
| Transaction with non-controlling interests (Note 34 (iii))                                |   |   | — |   |   |   | 3,216 |   |
| Balance as of December 31                                                                 |   |   | (33,713 | )      |   |   | (30,497 | ) |
|                                                                                      |   |   |    |   |   |   |   |   |
| Share premium (Note (b))                                                                  |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                   |   |   | 25,752  |   |   |   | 33,347 |   |
| Conversion of the 2011 Convertible Bonds (Note 24(v))                                     |   |   | 1       |   |   |   | 8,477 |   |
| Rights issue of Hshares, net of issuance costs(Note28)                                    |   |   | 16,561  |   |   |   | — |   |
| Capitalization(Note28)                                                                    |   |   | (8,967  | )      |   |   | — |   |
| Balance as of December 31                                                                 |   |   | 33,347  |   |   |   | 41,824 |   |
|                                                                                      |   |   |    |   |   |   |   |   |
| Statutory surplus reserve (Note (c))                                                      |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                   |   |   | 67,603  |   |   |   | 73,337 |   |
| Appropriation                                                                             |   |   | 5,734   |   |   |   | 3,215 |   |
| Balance as of December 31                                                                 |   |   | 73,337  |   |   |   | 76,552 |   |
|                                                                                      |   |   |    |   |   |   |   |   |
| Discretionary surplus reserve                                                             |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                   |   |   | 117,000 |   |   |   | 117,000 |   |
| Appropriation                                                                             |   |   | — |   |   |   | — |   |
| Balance as of December 31                                                                 |   |   | 117,000 |   |   |   | 117,000 |   |
|                                                                                      |   |   |    |   |   |   |   |   |
| Other reserves                                                                            |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                   |   |   | 3,305   |   |   |   | 2,491 |   |
| Other comprehensive income                                                                |   |   | 1,180   |   |   |   | (7,668 | ) |
| Others (Note (g))                                                                         |   |   | (1,994  | )      |   |   | (1,002 | ) |
| Balance as of December 31                                                                 |   |   | 2,491   |   |   |   | (6,179 | ) |
|                                                                                      |   |   |    |   |   |   |   |   |
| Retained earnings (Note (d))                                                              |   |   |    |   |   |   |   |   |
| Balance as of January 1                                                                   |   |   | 243,741 |   |   |   | 259,776 |   |
| Net income attributable to owners of the Company                                          |   |   | 66,132  |   |   |   | 46,466 |   |
| Final dividend inspect of the previous year, approved and paid during the year (Note (e)) |   |   | (17,933 | )      |   |   | (17,519 | ) |
| Interim dividend (Note (f))                                                               |   |   | (10,491 | )      |   |   | (10,512 | ) |
| Appropriation                                                                             |   |   | (5,734  | )      |   |   | (3,215 | ) |
| Bonus issues(Note 28)                                                                     |   |   | (17,933 | )      |   |   | — |   |
| Others (Note (g))                                                                         |   |   | 1,994   |   |   |   | 1,065 |   |
| Balance as of December 31                                                                 |   |   | 259,776 |   |   |   | 276,061 |   |
|                                                                                      |   |   | 452,238 |   |   |   | 474,761 |   |
|                                                                                      |   |   |    |   |   |   |   |   |

| (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, and (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 167 and 168 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 complying with Accounting Standards for Business Enterprises (“ASBE”),  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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | During the years ended December 31, 2012, 2013 and 2014, the Company transferred RMB 6,340, RMB 5,734 and RMB 3,215, respectively, being 10% of the net income determined in accordance with the PRC accounting policies complying with ASBE, to this reserve. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | According to the Company’s Articles of Association, the amount of retained earnings available for distribution to owners 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, 2013 and 2014, the amount of retained earnings available for distribution was RMB 164,698 and RMB 166,481, respectively, being the amount determined in accordance with the accounting policies complying with IFRS. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Pursuant to a resolution passed at the director’s meeting on March 20, 2015, final dividends in respect of the year ended December 31, 2014 of RMB 0.11 per share totaling RMB 13,318 were proposed for shareholders’ approval at the Annual General Meeting. Final cash dividend for the year ended December 31, 2014 proposed after the balance sheet date has not been recognized as a liability at the balance sheet date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Pursuant to the shareholders’ approval at the Annual General Meeting on May 29, 2013, a final dividend of RMB 0.20 per share totaling RMB 17,933, and with bonus issues of 2 shares converted from the retained earnings and 1 share transferred from the share premium for every 10 existing shares in respect of the year ended December 31, 2012 was declared and cash dividends were paid on June 25, 2013. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Pursuant to the shareholders’ approval at the Annual General Meeting on May 9, 2014, a final dividend of RMB 0.15 per share totaling RMB 17,519 in respect of the year ended December 31, 2013 was declared and paid on June 19, 2014. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Pursuant to the Company’s Articles of Association and a resolution passed at the Directors’ meeting on August 23, 2013, the directors authorized to declare an interim dividend for the year ended December 31, 2013 of RMB 0.09 per share totaling RMB 10,491. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Pursuant to the Company’s Articles of Association and a resolution passed at the Directors’ meeting on August 22, 2014, the directors authorized to declare an interim dividend for the year ended December 31, 2014 of RMB 0.09 per share totaling RMB 10,512. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | According to relevant PRC regulations, the Group is required to transfer an amount to other reserves for the safety production fund based on the turnover of certain refining and chemicals products or based on the production volume of crude oil and natural gas. During the year ended December 31, 2012, the Group transferred RMB 435 from retained earnings to other reserves for the safety production fund, and transferred RMB 1,994 and RMB 1,065 from other reserves to retained earnings during the year ended December 31, 2013 and 2014 for the safety production fund. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30. | COMMITMENTS AND CONTINGENT LIABILITIES |
|-----|----------------------------------------|

----

|                         |   | December 31, |    |
|------------------------------|--------|--------------|---------|
|                         |   | 2013         |    |   | 2014 |   |
|                         |   | RMB          |    |   | RMB |   |
| Within one year              |   |         | 13,507  |   |   |   | 13,909 |   |
| Between one and two years    |   |         | 13,064  |   |   |   | 13,480 |   |
| Between two and three years  |   |         | 12,850  |   |   |   | 13,113 |   |
| Between three and four years |   |         | 12,742  |   |   |   | 12,984 |   |
| Between four and five years  |   |         | 12,656  |   |   |   | 13,063 |   |
| Thereafter                   |   |         | 307,268 |   |   |   | 297,425 |   |
|                         |   |         | 372,087 |   |   |   | 363,974 |   |
|                         |   |         |    |   |   |   |   |   |

|                              |   | December 31, |    |
|-----------------------------------|--------|--------------|---------|
|                              |   | 2013         |    |   | 2014 |   |
|                              |   | RMB          |    |   | RMB |   |
| Authorized and contracted for (i) |   |         | 181,428 |   |   |   | 138,795 |   |
| Authorized but not contracted for |   |         | 111,169 |   |   |   | 102,386 |   |
|                              |   |         | 292,597 |   |   |   | 241,181 |   |
|                              |   |         |    |   |   |   |   |   |

| (i) | The investment commitments for the year ended December 31, 2013 and 2014 of the Group were RMB 4,993 and RMB 4,030, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

|                         |   | December 31, |   |
|------------------------------|--------|--------------|--------|
|                         |   | 2013         |   |   | 2014 |   |
|                         |   | RMB          |   |   | RMB |   |
| Within one year              |   |         | 318    |   |   |   | 312 |   |
| Between one and two years    |   |         | 140    |   |   |   | 160 |   |
| Between two and three years  |   |         | 38     |   |   |   | 32 |   |
| Between three and four years |   |         | 24     |   |   |   | 22 |   |
| Between four and five years  |   |         | 19     |   |   |   | 19 |   |
| Thereafter                   |   |         | 835    |   |   |   | 811 |   |
|                         |   |         | 1,374  |   |   |   | 1,356 |   |
|                         |   |         |   |   |   |   |   |   |

|           |   | December 31, |   |
|----------------|--------|--------------|--------|
|           |   | 2013         |   |   | 2014 |   |
|           |   | RMB          |   |   | RMB |   |
| Joint ventures |   |         | 438    |   |   |   | 168 |   |
| Others         |   |         | 5,425  |   |   |   | 5,552 |   |
|           |   |         | 5,863  |   |   |   | 5,720 |   |
|           |   |         |   |   |   |   |   |   |

----

| 31. | RELATED PARTY TRANSACTIONS |
|-----|----------------------------|

| (a) | Transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures |
|-----|------------------------------------------------------------------------------------------------|

|                                                        |   |   |   |   Years ended December 31, |    |
|-------------------------------------------------------------|--------|--------|--------|---------------------------------|---------|
|                                                        |   | Note   |   | 2012                            |    |   | 2013 |   |   | 2014 |   |
|                                                        |   |   |   | RMB                             |    |   | RMB |   |   | RMB |   |
| Sales of goods                                              |   | (i)    |   |                            | 313,919 |   |   |   | 318,092 |   |   |   | 305,044 |   |
| Purchases                                                   |   | (ii)   |   |                            | 129,005 |   |   |   | 141,316 |   |   |   | 134,424 |   |
| Transportation and storage                                  |   | (iii)  |   |                            | 1,590   |   |   |   | 1,639 |   |   |   | 1,606 |   |
| Exploration and development services                        |   | (iv)   |   |                            | 48,831  |   |   |   | 52,814 |   |   |   | 49,399 |   |
| Production related services                                 |   | (v)    |   |                            | 11,893  |   |   |   | 13,235 |   |   |   | 10,306 |   |
| Ancillary and social services                               |   | (vi)   |   |                            | 4,062   |   |   |   | 6,755 |   |   |   | 6,753 |   |
| Operating lease charges                                     |   | (vii)  |   |                            | 7,408   |   |   |   | 11,116 |   |   |   | 11,302 |   |
| Agency commission income                                    |   | (viii) |   |                            | 154     |   |   |   | 185 |   |   |   | 132 |   |
| Interest income                                             |   | (ix)   |   |                            | 116     |   |   |   | 89 |   |   |   | 135 |   |
| Interest expense                                            |   | (x)    |   |                            | 1,228   |   |   |   | 1,802 |   |   |   | 1,421 |   |
| Net deposits withdrawn from / (placed with) related parties |   | (ix)   |   |                            | 3,108   |   |   |   | (2,528 | ) |   |   | 2,319 |   |
| Net loans obtained from related parties                     |   | (xi)   |   |                            | 30,805  |   |   |   | 11,903 |   |   |   | 53,690 |   |

| (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 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 income 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, 2013 and 2014 were RMB 6,540 and RMB 4,221, respectively. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (x) | Interest expense represents interest charges on the loans and advances obtained from Sinopec Group Company and fellow subsidiaries. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

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

| ● | 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: |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | the government-prescribed price; |
|--------|-----|----------------------------------|

|   | (2) | where there is no government-prescribed price, the government-guidance price; |
|--------|-----|-------------------------------------------------------------------------------|

|   | (3) | where there is neither a government-prescribed price nor a government-guidance price, the market price; or |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (4) | 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%. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | 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 described in the above Mutual Provision Agreement. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | The Company has entered into a series of lease agreements with Sinopec Group Company to lease certain lands and buildings effective on January 1, 2000. The lease term is 40 or 50 years for lands and 20 years for buildings, respectively. The Company and Sinopec Group Company can renegotiate the rental amount every three years for land. 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 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. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | 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. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Pursuant to the resolutions passed at the Directors’ meeting held on October 31, 2014, the Group acquired the equity interests of YASREF from Sinopec Group Company. The acquisition has been completed in 2014 (Note 19). |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Pursuant to the Share Repurchase Agreement and Disposal Agreement by the Company and Sinopec Yizheng Chemical Fibre Company Limited (Yizheng Chemical Fibre Co., Ltd.) on September 12, 2014, Yizheng Chemical Fibre Co., Ltd repurchased and cancelled the 40.25% of its equity interests held by the Company in exchange for the transfer of its outgoing business to the Company and issued shares to Sinopec Group Company for the acquisition of 100% equity Interest of Sinopec Oilfield Service Corporation (a wholly-owned subsidiary of the Sinopec Group Company). These transactions were completed in December 2014 (Note 34). |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Pursuant to the resolutions passed at the Directors’ meeting held on March 22, 2013, the Group acquired the equity interests of CIR, Taihu and Mansarovar from Sinopec Group Company. The acquisition was completed in 2013 (Note 19). |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                       |   | December 31, |    |
|------------------------------------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                                                       |   | 2013         |    |   | 2014 |   |
|                                                                                                       |   | RMB          |    |   | RMB |   |
| Trade accounts receivable                                                                                  |   |         | 18,402  |   |   |   | 25,478 |   |
| Prepaid expenses and other current assets                                                                  |   |         | 2,276   |   |   |   | 3,564 |   |
| Long-term prepayment and other assets                                                                      |   |         | 11,378  |   |   |   | 14,935 |   |
| Total                                                                                                      |   |         | 32,056  |   |   |   | 43,977 |   |
|                                                                                                       |   |         |    |   |   |   |   |   |
| Trade accounts payable                                                                                     |   |         | 10,642  |   |   |   | 16,847 |   |
| Accrued expenses and other payables                                                                        |   |         | 22,369  |   |   |   | 24,711 |   |
| Other long-term liabilities                                                                                |   |         | 4,102   |   |   |   | 6,470 |   |
| Short-term loans and current portion of long-term loans from Sinopec Group Company and fellow subsidiaries |   |         | 54,064  |   |   |   | 102,965 |   |
| Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries               |   |         | 38,356  |   |   |   | 43,145 |   |
| Total                                                                                                      |   |         | 129,533 |   |   |   | 194,138 |   |
|                                                                                                       |   |         |    |   |   |   |   |   |

----

| (b) | Key management personnel emoluments |
|-----|-------------------------------------|

|                            |   | Years ended December 31, |   |
|---------------------------------|--------|--------------------------|--------|
|                            |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
|                            |   | RMB’000            |   |   | RMB’000 |   |   | RMB’000 |   |
| Short-term employee benefits    |   |                     | 8,990  |   |   |   | 8,152 |   |   |   | 8,009 |   |
| Retirement scheme contributions |   |                     | 478    |   |   |   | 480 |   |   |   | 501 |   |
|                            |   |                     | 9,468  |   |   |   | 8,632 |   |   |   | 8,510 |   |
|                            |   |                     |   |   |   |   |   |   |   |   |   |   |

| (c) | Contributions to defined contribution retirement plans |
|-----|--------------------------------------------------------|

| (d) | Transactions with other state-controlled entities in the PRC |
|-----|--------------------------------------------------------------|

|   | · | sales and purchase of goods and ancillary materials; |
|--------|--------|------------------------------------------------------|

|   | · | rendering and receiving services; |
|--------|--------|-----------------------------------|

|   | · | lease of assets; |
|--------|--------|------------------|

|   | · | depositing and borrowing money; and |
|--------|--------|-------------------------------------|

|   | · | use of public utilities. |
|--------|--------|--------------------------|

| 32. | EMPLOYEE BENEFITS PLAN |
|-----|------------------------|

----

| 33. | SEGMENT REPORTING |
|-----|-------------------|

|   | (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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Information of reportable segmental revenues, profits or losses, assets and liabilities |
|-----|-----------------------------------------------------------------------------------------|

----

|                                        |   | Years ended December 31, |       |
|---------------------------------------------|--------|--------------------------|------------|
|                                        |   | 2012                     |       |   | 2013 |   |   | 2014 |   |
|                                        |   | RMB                      |       |   | RMB |   |   | RMB |   |
| Sales of goods                              |   |                     |       |   |   |   |   |   |   |
| Exploration and production                  |   |                     |       |   |   |   |   |   |   |
| External sales                              |   |                     | 53,738     |   |   |   | 60,848 |   |   |   | 69,550 |   |
| Inter-segment sales                         |   |                     | 174,571    |   |   |   | 158,618 |   |   |   | 141,544 |   |
|                                        |   |                     | 228,309    |   |   |   | 219,466 |   |   |   | 211,094 |   |
| Refining                                    |   |                     |       |   |   |   |   |   |   |   |   |   |
| External sales                              |   |                     | 193,464    |   |   |   | 194,469 |   |   |   | 175,534 |   |
| Inter-segment sales                         |   |                     | 1,071,387  |   |   |   | 1,111,004 |   |   |   | 1,092,244 |   |
|                                        |   |                     | 1,264,851  |   |   |   | 1,305,473 |   |   |   | 1,267,778 |   |
| Marketing and distribution                  |   |                     |       |   |   |   |   |   |   |   |   |   |
| External sales                              |   |                     | 1,453,541  |   |   |   | 1,486,037 |   |   |   | 1,458,390 |   |
| Inter-segment sales                         |   |                     | 9,638      |   |   |   | 6,330 |   |   |   | 5,446 |   |
|                                        |   |                     | 1,463,179  |   |   |   | 1,492,367 |   |   |   | 1,463,836 |   |
| Chemicals                                   |   |                     |       |   |   |   |   |   |   |   |   |   |
| External sales                              |   |                     | 356,150    |   |   |   | 374,097 |   |   |   | 356,993 |   |
| Inter-segment sales                         |   |                     | 48,226     |   |   |   | 55,999 |   |   |   | 62,208 |   |
|                                        |   |                     | 404,376    |   |   |   | 430,096 |   |   |   | 419,201 |   |
| Corporate and others                        |   |                     |       |   |   |   |   |   |   |   |   |   |
| External sales                              |   |                     | 676,725    |   |   |   | 717,796 |   |   |   | 721,174 |   |
| Inter-segment sales                         |   |                     | 635,046    |   |   |   | 640,224 |   |   |   | 587,663 |   |
|                                        |   |                     | 1,311,771  |   |   |   | 1,358,020 |   |   |   | 1,308,837 |   |
| Elimination of inter-segment sales          |   |                     | (1,938,868 | ) |   |   | (1,972,175 | ) |   |   | (1,889,105 | ) |
| Sales of goods                              |   |                     | 2,733,618  |   |   |   | 2,833,247 |   |   |   | 2,781,641 |   |
|                                        |   |                     |       |   |   |   |   |   |   |   |   |   |
| Other operating revenues                    |   |                     |       |   |   |   |   |   |   |   |   |   |
| Exploration and production                  |   |                     | 28,876     |   |   |   | 22,641 |   |   |   | 16,503 |   |
| Refining                                    |   |                     | 6,061      |   |   |   | 5,796 |   |   |   | 5,317 |   |
| Marketing and distribution                  |   |                     | 8,703      |   |   |   | 10,047 |   |   |   | 12,770 |   |
| Chemicals                                   |   |                     | 7,588      |   |   |   | 7,491 |   |   |   | 8,284 |   |
| Corporate and others                        |   |                     | 1,199      |   |   |   | 1,089 |   |   |   | 1,399 |   |
| Other operating revenues                    |   |                     | 52,427     |   |   |   | 47,064 |   |   |   | 44,273 |   |
|                                        |   |                     |       |   |   |   |   |   |   |   |   |   |
| Sales of goods and other operating revenues |   |                     | 2,786,045  |   |   |   | 2,880,311 |   |   |   | 2,825,914 |   |
|                                        |   |                     |       |   |   |   |   |   |   |   |   |   |

----

|                                                |   | Years ended December 31, |    |
|-----------------------------------------------------|--------|--------------------------|---------|
|                                                |   | 2012                     |    |   | 2013 |   |   | 2014 |   |
| Result                                              |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Operating income / (loss)                           |   |                     |    |   |   |   |   |   |   |
| By segment                                          |   |                     |    |   |   |   |   |   |   |
| - Exploration and production                        |   |                     | 70,054  |   |   |   | 54,793 |   |   |   | 47,057 |   |
| - Refining                                          |   |                     | (11,444 | ) |   |   | 8,599 |   |   |   | (1,954 | ) |
| - Marketing and distribution                        |   |                     | 42,652  |   |   |   | 35,143 |   |   |   | 29,449 |   |
| - Chemicals                                         |   |                     | 1,178   |   |   |   | 868 |   |   |   | (2,181 | ) |
| - Corporate and others                              |   |                     | (2,443  | ) |   |   | (3,412 | ) |   |   | (1,063 | ) |
| - Elimination                                       |   |                     | (1,335  | ) |   |   | 794 |   |   |   | 2,179 |   |
| Total segment operating income                      |   |                     | 98,662  |   |   |   | 96,785 |   |   |   | 73,487 |   |
| Income / (loss) from associates and joint ventures  |   |                     |    |   |   |   |   |   |   |   |   |   |
| - Exploration and production                        |   |                     | 301     |   |   |   | 358 |   |   |   | 1,117 |   |
| - Refining                                          |   |                     | (934    | ) |   |   | (486 | ) |   |   | (871 | ) |
| - Marketing and distribution                        |   |                     | 1,034   |   |   |   | 794 |   |   |   | 963 |   |
| - Chemicals                                         |   |                     | 408     |   |   |   | 418 |   |   |   | 603 |   |
| - Corporate and others                              |   |                     | 817     |   |   |   | 1,275 |   |   |   | 1,818 |   |
| Aggregate income from associates and joint ventures |   |                     | 1,626   |   |   |   | 2,359 |   |   |   | 3,630 |   |
| Investment income                                   |   |                     |    |   |   |   |   |   |   |   |   |   |
| - Exploration and production                        |   |                     | 1       |   |   |   | 8 |   |   |   | 1 |   |
| - Refining                                          |   |                     | 75      |   |   |   | 11 |   |   |   | 17 |   |
| - Marketing and distribution                        |   |                     | 131     |   |   |   | 93 |   |   |   | 71 |   |
| - Chemicals                                         |   |                     | 14      |   |   |   | — |   |   |   | 208 |   |
| - Corporate and others                              |   |                     | 14      |   |   |   | 42 |   |   |   | 2,319 |   |
| Aggregate investment income                         |   |                     | 235     |   |   |   | 154 |   |   |   | 2,616 |   |
| Net finance costs                                   |   |                     | (9,881  | ) |   |   | (4,246 | ) |   |   | (14,229 | ) |
| Earnings before income tax                          |   |                     | 90,642  |   |   |   | 95,052 |   |   |   | 65,504 |   |
|                                                |   |                     |    |   |   |   |   |   |   |   |   |   |

----

|                                                                    |   | December 31, |      |
|-------------------------------------------------------------------------|--------|--------------|-----------|
|                                                                    |   | 2012         |      |   | 2013 |   |   | 2014 |   |
|                                                                    |   | RMB          |      |   | RMB |   |   | RMB |   |
| Assets                                                                  |   |         |      |   |   |   |   |   |   |
| Segment assets                                                          |   |         |      |   |   |   |   |   |   |
| - Exploration and production                                            |   |         | 368,587   |   |   |   | 406,237 |   |   |   | 453,060 |   |
| - Refining                                                              |   |         | 309,204   |   |   |   | 329,236 |   |   |   | 297,884 |   |
| - Marketing and distribution                                            |   |         | 261,724   |   |   |   | 273,872 |   |   |   | 276,298 |   |
| - Chemicals                                                             |   |         | 145,867   |   |   |   | 156,373 |   |   |   | 162,685 |   |
| - Corporate and others                                                  |   |         | 100,517   |   |   |   | 107,197 |   |   |   | 147,015 |   |
| Total segment assets                                                    |   |         | 1,185,899 |   |   |   | 1,272,915 |   |   |   | 1,336,942 |   |
|                                                                    |   |         |      |   |   |   |   |   |   |   |   |   |
| Interest in associates and joint ventures                               |   |         | 50,200    |   |   |   | 75,318 |   |   |   | 80,593 |   |
| Available-for-sale financial assets                                     |   |         | 2,001     |   |   |   | 3,730 |   |   |   | 868 |   |
| Deferred tax assets                                                     |   |         | 5,539     |   |   |   | 4,141 |   |   |   | 6,979 |   |
| Cash and cash equivalents and time deposits with financial institutions |   |         | 10,864    |   |   |   | 15,101 |   |   |   | 10,100 |   |
| Other unallocated assets                                                |   |         | 3,441     |   |   |   | 11,711 |   |   |   | 15,886 |   |
| Total assets                                                            |   |         | 1,257,944 |   |   |   | 1,382,916 |   |   |   | 1,451,368 |   |
|                                                                    |   |         |      |   |   |   |   |   |   |   |   |   |
| Liabilities                                                             |   |         |      |   |   |   |   |   |   |   |   |   |
| Segment liabilities                                                     |   |         |      |   |   |   |   |   |   |   |   |   |
| - Exploration and production                                            |   |         | 90,430    |   |   |   | 104,233 |   |   |   | 100,552 |   |
| - Refining                                                              |   |         | 62,271    |   |   |   | 69,029 |   |   |   | 67,327 |   |
| - Marketing and distribution                                            |   |         | 87,785    |   |   |   | 101,564 |   |   |   | 118,493 |   |
| - Chemicals                                                             |   |         | 30,100    |   |   |   | 23,670 |   |   |   | 27,532 |   |
| - Corporate and others                                                  |   |         | 139,811   |   |   |   | 129,816 |   |   |   | 138,930 |   |
| Total segment liabilities                                               |   |         | 410,397   |   |   |   | 428,312 |   |   |   | 452,834 |   |
|                                                                    |   |         |      |   |   |   |   |   |   |   |   |   |
| Short-term debts                                                        |   |         | 73,063    |   |   |   | 109,806 |   |   |   | 75,183 |   |
| Income tax payable                                                      |   |         | 6,045     |   |   |   | 3,096 |   |   |   | 1,091 |   |
| Long-term debts                                                         |   |         | 124,518   |   |   |   | 107,234 |   |   |   | 107,787 |   |
| Loans from Sinopec Group Company and fellow subsidiaries                |   |         | 80,517    |   |   |   | 92,420 |   |   |   | 146,110 |   |
| Deferred tax liabilities                                                |   |         | 7,294     |   |   |   | 7,977 |   |   |   | 7,820 |   |
| Other unallocated liabilities                                           |   |         | 8,074     |   |   |   | 12,445 |   |   |   | 14,966 |   |
| Total liabilities                                                       |   |         | 709,908   |   |   |   | 761,290 |   |   |   | 805,791 |   |
|                                                                    |   |         |      |   |   |   |   |   |   |   |   |   |

----

|                                     |   | Years ended December 31, |    |
|------------------------------------------|--------|--------------------------|---------|
|                                     |   | 2012                     |    |   | 2013 |   |   | 2014 |   |
|                                     |   | RMB                      |    |   | RMB |   |   | RMB |   |
| Capital expenditure                      |   |                     |    |   |   |   |   |   |   |
| Exploration and production               |   |                     | 78,272  |   |   |   | 105,311 |   |   |   | 80,196 |   |
| Refining                                 |   |                     | 32,161  |   |   |   | 26,064 |   |   |   | 27,957 |   |
| Marketing and distribution               |   |                     | 27,232  |   |   |   | 29,486 |   |   |   | 26,989 |   |
| Chemicals                                |   |                     | 18,996  |   |   |   | 19,189 |   |   |   | 15,850 |   |
| Corporate and others                     |   |                     | 2,061   |   |   |   | 5,076 |   |   |   | 3,648 |   |
|                                     |   |                     | 158,722 |   |   |   | 185,126 |   |   |   | 154,640 |   |
| Depreciation, depletion and amortization |   |                     |    |   |   |   |   |   |   |   |   |   |
| Exploration and production               |   |                     | 39,283  |   |   |   | 44,126 |   |   |   | 48,902 |   |
| Refining                                 |   |                     | 12,270  |   |   |   | 13,859 |   |   |   | 15,015 |   |
| Marketing and distribution               |   |                     | 8,792   |   |   |   | 11,127 |   |   |   | 12,491 |   |
| Chemicals                                |   |                     | 8,883   |   |   |   | 10,757 |   |   |   | 12,130 |   |
| Corporate and others                     |   |                     | 1,228   |   |   |   | 1,396 |   |   |   | 1,559 |   |
|                                     |   |                     | 70,456  |   |   |   | 81,265 |   |   |   | 90,097 |   |
| Impairment losses on long-lived assets   |   |                     |    |   |   |   |   |   |   |   |   |   |
| Exploration and production               |   |                     | 1,006   |   |   |   | 2,523 |   |   |   | 2,436 |   |
| Refining                                 |   |                     | — |   |   |   | 88 |   |   |   | 29 |   |
| Marketing and distribution               |   |                     | 8       |   |   |   | 35 |   |   |   | 40 |   |
| Chemicals                                |   |                     | — |   |   |   | — |   |   |   | 1,106 |   |
| Corporate and others                     |   |                     | — |   |   |   | 15 |   |   |   | 8 |   |
|                                     |   |                     | 1,014   |   |   |   | 2,661 |   |   |   | 3,619 |   |
|                                     |   |                     |    |   |   |   |   |   |   |   |   |   |

|               |   | Years ended December 31, |      |
|--------------------|--------|--------------------------|-----------|
|               |   | 2012                     |      |   | 2013 |   |   | 2014 |   |
|               |   | RMB                      |      |   | RMB |   |   | RMB |   |
| External sales     |   |                     |      |   |   |   |   |   |   |
| Mainland China     |   |                     | 2,088,043 |   |   |   | 2,107,202 |   |   |   | 2,062,775 |   |
| Others             |   |                     | 698,002   |   |   |   | 773,109 |   |   |   | 763,139 |   |
|               |   |                     | 2,786,045 |   |   |   | 2,880,311 |   |   |   | 2,825,914 |   |
|               |   |                     |      |
|               |   | December 31,             |      |
|               |   |                     | 2012      |   |   |   | 2013 |   |   |   | 2014 |   |
|               |   | RMB                      |      |   | RMB |   |   | RMB |   |
| Non-current assets |   |                     |      |   |   |   |   |   |   |   |   |   |
| Mainland China     |   |                     | 862,044   |   |   |   | 941,046 |   |   |   | 1,003,521 |   |
| Others             |   |                     | 22,123    |   |   |   | 51,181 |   |   |   | 64,589 |   |
|               |   |                     | 884,167   |   |   |   | 992,227 |   |   |   | 1,068,110 |   |
|               |   |                     |      |   |   |   |   |   |   |   |   |   |

----

| 34. | PRINCIPAL SUBSIDIARIES |
|-----|------------------------|

| Name of company                                                                            |   | Particulars of issued capital |   | Interests held by the Company |   |   | Interests held by non-controlling |   | Principal activities |
|--------------------------------------------------------------------------------------------|--------|-------------------------------|--------|-------------------------------|--------|--------|-----------------------------------|--------|----------------------|
| China Petrochemical International Company Limited                                          |   | RMB 1,400                     |   |                          | 100.00 |   |                              |   | —              |   | Trading of petrochemical products |
| Sinopec Marketing Co., Ltd. ("Marketing Company") (i)                                 |   | RMB 20,000                    |   |                          | 100.00 |   |                              |   | —              |   | Marketing and distribution of refined petroleum products |
| Sinopec Yangzi Petrochemical Company Limited                                               |   | RMB 13,203                    |   |                          | 100.00 |   |                              |   | —              |   | Manufacturing of intermediate petrochemical products and petroleum products |
| Fujian Petrochemical Company Limited ("Fujian Petrochemical") (ii)                         |   | RMB 5,745                     |   |                          | 50.00  |   |                              |   | 50.00                |   | Manufacturing of plastics, intermediate petrochemical products and petroleum products |
| Sinopec Shell (Jiangsu) Petroleum Marketing Company Limited                                |   | RMB 830                       |   |                          | 60.00  |   |                              |   | 40.00                |   | Marketing and distribution of refined petroleum products |
| BP Sinopec (Zhejiang) Petroleum Company Limited                                            |   | RMB 800                       |   |                          | 60.00  |   |                              |   | 40.00                |   | Marketing and distribution of refined petroleum products |
| Sinopec Qingdao Refining and Chemical Company Limited                                      |   | RMB 5,000                     |   |                          | 85.00  |   |                              |   | 15.00                |   | Manufacturing of intermediate petrochemical products and petroleum products |
| China International United Petroleum and Chemical Company Limited                          |   | RMB 3,000                     |   |                          | 100.00 |   |                              |   | —              |   | Trading of crude oil and petrochemical products |
| Sinopec Senmei (Fujian) Petroleum Limited                                                  |   | RMB 1,840                     |   |                          | 55.00  |   |                              |   | 45.00                |   | Marketing and distribution of refined petroleum products |
| Sinopec (Hong Kong) Limited                                                                |   | HKD 13,277                    |   |                          | 100.00 |   |                              |   | —              |   | Trading of petrochemical products |
| Sinopec Hainan Refining and Chemical Company Limited                                       |   | RMB 3,986                     |   |                          | 75.00  |   |                              |   | 25.00                |   | Manufacturing of intermediate petrochemical products and petroleum products |
| Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical")                  |   | RMB 7,200                     |   |                          | 50.56  |   |                              |   | 49.44                |   | Manufacturing of synthetic fibres, resin and plastics, intermediate petrochemical products and petroleum products |
| Sinopec Kantons Holdings Limited ("Sinopec Kantons")                                       |   | HKD 248                       |   |                          | 60.34  |   |                              |   | 39.66                |   | Trading of crude oil and petroleum products |
| Sinopec Yizheng Chemical Fibre Linited Liability Company (iii)                             |   | RMB 4,000                     |   |                          | 100.00 |   |                              |   | —              |   | Production and sale of polyester chips and polyester fibres |
| Sinopec Qingdao Petrochemical Company Limited                                              |   | RMB 1,595                     |   |                          | 100.00 |   |                              |   | —              |   | Manufacturing of intermediate petrochemical products and petroleum products |
| Sinopec Chemical Sales Company Limited                                                     |   | RMB 1,000                     |   |                          | 100.00 |   |                              |   | —              |   | Marketing and distribution of petrochemical products |
| Sinopec International Petroleum Exploration and Production Limited ("SIPL")                |   | 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 |
| Sinopec Great Wall Energy & Chemical Company Limited ("GWEC")(iv)                      |   | RMB 18,863                    |   |                          | 100.00 |   |                              |   | —              |   | Coal chemical industry investment Management, production and sale of coal chemical products |
| Sinopec Great Wall Energy & Chemical (Ningxia) Company Limited ("Ningxia Nenghua")(iv) |   | RMB 5,130                     |   |                          | 95.00  |   |                              |   | 5.00                 |   | Production and sale of electricity, cement and coal |
| Sinopec Beihai Refining and Chemical Limited Liability Company                             |   | RMB 5,294                     |   |                          | 98.98  |   |                              |   | 1.02                 |   | Import and processing of crude oil, production, storage and sale of petroleum products and petrochemical products |
| Sinopec-SK(Wuhan) Petrochemical Company Limited ("Zhonghan Wuhan")                         |   | RMB 6,270                     |   |                          | 65.00  |   |                              |   | 35.00                |   | Production, sale, research and development of ethylene and downstream by products |
| Sinopec Zhanjiang Dongxing Petrochemical Company Limited                                   |   | RMB 4,397                     |   |                          | 75.00  |   |                              |   | 25.00                |   | Manufacturing of intermediate petrochemical products and petroleum products |

----

| (i) | Pursuant to the resolution of the Company’s Meeting of Board of Directors held on February 19, 2014, the Company's business under its marketing and distribution segment of the Group was injected to Marketing Company, a wholly-owned subsidiary of the Group on April 1, 2014. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | The Group consolidated the financial statements of the entity because it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | Pursuant to the Share Repurchase Agreement and Disposal Agreement entered into between the Company and Yizheng Chemical Fibre Co., Ltd. on September 12, 2014, Yizheng Chemical Fibre Co., Ltd. repurchased and cancelled the 40.25% of its equity interests held by the Company in exchange for the transfer of its outgoing business to the Company, pursuant to which this business was injected into Sinopec Yizheng Chemical Fibre Limited Liability Company. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | During the year ended December 31, 2014, the Company increased its investment in GWEC by RMB 5,712 . Further, on August 1, 2014, GWEC acquired an additional 45% of the equity interest in shares in Ningxia Nenghua (GWEC previously held a 50% equity interest) and obtained control of Ningxia Nenghua (a coal chemical producer) which the Group accounted for as a subsidiary of GWEC thereafter. The cash consideration was RMB 2,593. The fair value of the 50% equity interest held before the business combination is RMB 2,881. The fair value of the assets and liabilities of Ningxia Nenghua primarily include construction in progress amounting to RMB 14,094, property, plant and equipment amounting to RMB 3,293 and borrowings amounting to RMB 11,862 and no goodwill has arisen from the business combination. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |   | Fujian Petrochemical |   | Shanghai Petrochemical |         | Sinopec Kantons |   | SIPL         |   | Marketing Company(i) |         | Zhonghan Wuhan |
|-----------------------------------------------|--------|----------------------|--------|------------------------|--------------|-----------------|--------|--------------|--------|----------------------|--------------|----------------|
|                                          |   | At                   |   |                   | At           |            |   | At           |   |                 | At           |           |   | At |   |   | At |   |   | At |   |   | At |   |   | At |   |   | At |   |   | At |   |
|                                          |   | December 31,         |   |                   | December 31, |            |   | December 31, |   |                 | December 31, |           |   | December 31, |   |   | December 31, |   |   | December 31, |   |   | December 31, |   |   | December 31, |   |   | December 31, |   |   | December 31, |   |
|                                          |   | 2013                 |   |                   | 2014         |            |   | 2013         |   |                 | 2014         |           |   | 2013 |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |
|                                          |   | RMB                  |   |                   | RMB          |            |   | RMB          |   |                 | RMB          |           |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Current assets                                |   |                 | 281    |                   |         |            | 436    |         |   |                 | 14,486       |           |   |   | 9,510 |   |   |   | 1,886 |   |   |   | 1,581 |   |   |   | 13,983 |   |   |   | 15,416 |   |   |   | 131,012 |   |   | — |   |   |   | 1,724 |   |
| Current liabilities                           |   |                 | (197   | )                      |         |            | (224   | )            |   |                 | (18,017      | )              |   |   | (12,485 | ) |   |   | (972 | ) |   |   | (928 | ) |   |   | (2,414 | ) |   |   | (2,387 | ) |   |   | (280,010 | ) |   | — |   |   |   | (13,023 | ) |
| Net current assets / (liabilities)            |   |                 | 84     |                   |         |            | 212    |         |   |                 | (3,531       | )              |   |   | (2,975 | ) |   |   | 914 |   |   |   | 653 |   |   |   | 11,569 |   |   |   | 13,029 |   |   |   | (148,998 | ) |   | — |   |   |   | (11,299 | ) |
| Non-current assets                            |   |                 | 4,596  |                   |         |            | 4,050  |         |   |                 | 22,151       |           |   |   | 21,395 |   |   |   | 6,912 |   |   |   | 7,536 |   |   |   | 46,143 |   |   |   | 47,623 |   |   |   | 229,281 |   |   |   | 4,033 |   |   |   | 16,874 |   |
| Non-current liabilities                       |   |                 | (796   | )                      |         |            | (996   | )            |   |                 | (628         | )              |   |   | (1,649 | ) |   |   | (77 | ) |   |   | (82 | ) |   |   | (32,831 | ) |   |   | (35,877 | ) |   |   | (1,456 | ) |   | ­— |   |   | — |   |
| Net non-current assets                        |   |                 | 3,800  |                   |         |            | 3,054  |         |   |                 | 21,523       |           |   |   | 19,746 |   |   |   | 6,835 |   |   |   | 7,454 |   |   |   | 13,312 |   |   |   | 11,746 |   |   |   | 227,825 |   |   |   | 4,033 |   |   |   | 16,874 |   |
| Net assets                                    |   |                 | 3,884  |                   |         |            | 3,266  |         |   |                 | 17,992       |           |   |   | 16,771 |   |   |   | 7,749 |   |   |   | 8,107 |   |   |   | 24,881 |   |   |   | 24,775 |   |   |   | 78,827 |   |   |   | 4,033 |   |   |   | 5,575 |   |
| Attributable to owners of the Company         |   |                 | 1,942  |                   |         |            | 1,633  |         |   |                 | 8,399        |           |   |   | 8,342 |   |   |   | 4,676 |   |   |   | 4,873 |   |   |   | 7,494 |   |   |   | 7,370 |   |   |   | 72,701 |   |   |   | 2,621 |   |   |   | 3,624 |   |
| Attributable to non-controlling interests (v) |   |                 | 1,942  |                   |         |            | 1,633  |         |   |                 | 9,593        |           |   |   | 8,429 |   |   |   | 3,073 |   |   |   | 3,234 |   |   |   | 17,387 |   |   |   | 17,405 |   |   |   | 6,126 |   |   |   | 1,412 |   |   |   | 1,951 |   |

| (v) | On May 9, 2013, Sinopec Kantons issued 412,500,000 ordinary shares to non-controlling interests with total consideration amounted to HK$2,681.25 million. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Group and a fellow subsidiary of Sinopec Group Company contributed USD 1,473 million to establish Sinopec International Petroleum E&P Hongkong Overseas Limited in Hong Kong through which three new joint ventures were acquired during the year ended 31 December 2013 (Note 19). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi) | Zhonghan Wuhan was established in 2013. |
|------|-----------------------------------------|

| Year ended  December 31,                             |   | Fujian Petrochemical |    | Shanghai Petrochemical |   | Sinopec Kantons |    | SIPL   |   | Marketing Company(i) |    | Zhonghan Wuhan(vi) |
|----------------------------------------------------------------|--------|----------------------|---------|------------------------|--------|-----------------|---------|--------|--------|----------------------|---------|--------------------|
|                                                           |   | 2012                 |    |                   | 2013   |            |    | 2014   |   |                 | 2012    |               |   | 2013 |   |   | 2014 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |
|                                                           |   | RMB                  |    |                   | RMB    |            |    | RMB    |   |                 | RMB     |               |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Operating revenues                                             |   |                 | 6,361   |                   |   |            | 5,379   |   |   |                 | 7,322   |               |   |   | 93,008 |   |   |   | 115,490 |   |   |   | 102,126 |   |   |   | 17,863 |   |   |   | 18,647 |   |   |   | 15,227 |   |   |   | 15,911 |   |   |   | 13,652 |   |   |   | 9,038 |   |   |   | 1,472,232 |   |   |   | — |   |   |   | 18,365 |   |
| Net income / (loss) for the year                          |   |                 | (1,007  | )                      |   |            | (716    | )      |   |                 | (745    | )                  |   |   | (1,505 | ) |   |   | 2,066 |   |   |   | (676 | ) |   |   | 236 |   |   |   | 392 |   |   |   | 554 |   |   |   | 5,735 |   |   |   | 4,250 |   |   |   | 3,046 |   |   |   | 22,914 |   |   |   | (43 | ) |   |   | 137 |   |
| Total comprehensive (loss) / income                            |   |                 | (1,006  | )                      |   |            | (714    | )      |   |                 | (750    | )                  |   |   | (1,505 | ) |   |   | 2,066 |   |   |   | (676 | ) |   |   | 236 |   |   |   | 620 |   |   |   | 399 |   |   |   | 5,693 |   |   |   | 3,814 |   |   |   | (106 | ) |   |   | 22,934 |   |   |   | (43 | ) |   |   | 137 |   |
| (Loss) / Profit attributable to non-controlling interests |   |                 | (504    | )                      |   |            | (358    | )      |   |                 | (375    | )                  |   |   | (656 | ) |   |   | 924 |   |   |   | (326 | ) |   |   | 85 |   |   |   | 246 |   |   |   | 158 |   |   |   | 2,622 |   |   |   | 1,774 |   |   |   | 18 |   |   |   | 930 |   |   |   | (15 | ) |   |   | 48 |   |
| Dividends declared to non-controlling interests           |   |                 | — |                   |   |            | — |   |   |                 | — |               |   |   | 187 |   |   |   | 196 |   |   |   | 271 |   |   |   | 7 |   |   |   | 28 |   |   |   | 39 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |

----

| Year ended December 31,                                 |   | Fujian Petrochemical |    | Shanghai Petrochemical |   | Sinopec Kantons |    | SIPL   |   | Marketing Company(i) |    | Zhonghan Wuhan |
|---------------------------------------------------------|--------|----------------------|---------|------------------------|--------|-----------------|---------|--------|--------|----------------------|---------|----------------|
|                                                    |   | 2012                 |    |                   | 2013   |            |    | 2014   |   |                 | 2012    |           |   | 2013 |   |   | 2014 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2014 |   |   | 2013 |   |   | 2014 |   |
|                                                    |   | RMB                  |    |                   | RMB    |            |    | RMB    |   |                 | RMB     |           |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Net cash (used) / generated from operating actities     |   |                 | (481    | )                      |   |            | 523     |   |   |                 | 197     |           |   |   | (2,066 | ) |   |   | 5,098 |   |   |   | 3,662 |   |   |   | 245 |   |   |   | 326 |   |   |   | 225 |   |   |   | 8,097 |   |   |   | 7,006 |   |   |   | 5,383 |   |   |   | 44,337 |   |   |   | — |   |   |   | 1,467 |   |
| Net cash used in investing activities                   |   |                 | (288    | )                      |   |            | (698    | )      |   |                 | (303    | )              |   |   | (4,062 | ) |   |   | (629 | ) |   |   | (910 | ) |   |   | (1,455 | ) |   |   | (3,024 | ) |   |   | (814 | ) |   |   | (3,040 | ) |   |   | (36,924 | ) |   |   | (8,282 | ) |   |   | (46,140 | ) |   |   | — |   |   |   | (2,643 | ) |
| Net cash generated from/ (used in) financing activities |   |                 | 600     |                   |   |            | 369     |   |   |                 | 264     |           |   |   | 6,198 |   |   |   | (4,497 | ) |   |   | (2,606 | ) |   |   | 2,530 |   |   |   | 2,050 |   |   |   | (65 | ) |   |   | (4,399 | ) |   |   | 31,662 |   |   |   | 1,740 |   |   |   | 1,584 |   |   |   | — |   |   |   | 1,513 |   |
| Net increase/ (decrease) in cash and cash equivalents   |   |                 | (169    | )                      |   |            | 194     |   |   |                 | 158     |           |   |   | 70 |   |   |   | (28 | ) |   |   | 146 |   |   |   | 1,320 |   |   |   | (648 | ) |   |   | (654 | ) |   |   | (658 | ) |   |   | 1,744 |   |   |   | (1,159 | ) |   |   | (219 | ) |   |   | — |   |   |   | 337 |   |
| Cash and cash equivalents at January 1             |   |                 | 197     |                   |   |            | 28      |   |   |                 | 222     |           |   |   | 91 |   |   |   | 161 |   |   |   | 133 |   |   |   | 626 |   |   |   | 1,920 |   |   |   | 1,295 |   |   |   | 179 |   |   |   | 824 |   |   |   | 2,468 |   |   |   | 2,878 |   |   |   | — |   |   |   | — |   |
| Effect of foreign currency exchange rate changes        |   |                 | — |                   |   |            | — |   |   |                 | — |           |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 4 |   |   |   | 23 |   |   |   | (13 | ) |   |   | (13 | ) |   |   | (100 | ) |   |   | 18 |   |   |   | 23 |   |   |   | — |   |   |   | — |   |
| Cash and cash equivalents at December 31                |   |                 | 28      |                   |   |            | 222     |   |   |                 | 380     |           |   |   | 161 |   |   |   | 133 |   |   |   | 279 |   |   |   | 1,950 |   |   |   | 1,295 |   |   |   | 628 |   |   |   | 824 |   |   |   | 2,468 |   |   |   | 1,327 |   |   |   | 2,682 |   |   |   | — |   |   |   | 337 |   |

----

| 35. | FINANCIAL RISK MANAGEMENT AND FAIR VALUES |
|-----|-------------------------------------------|

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

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

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

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

----

|                                                     |   | December 31, 2013 |    |
|----------------------------------------------------------|--------|-------------------|---------|
|                                                     |   | 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                                         |   |              | 109,806 |   |   |   | 111,753 |   |   |   | 111,753 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Long-term debts                                          |   |              | 107,234 |   |   |   | 134,403 |   |   |   | 3,942 |   |   |   | 14,799 |   |   |   | 82,326 |   |   |   | 33,336 |   |
| Loans from Sinopec Group Company and fellow subsidiaries |   |              | 92,420  |   |   |   | 93,030 |   |   |   | 54,373 |   |   |   | 484 |   |   |   | 2,613 |   |   |   | 35,560 |   |
| Trade accounts payable                                   |   |              | 202,724 |   |   |   | 202,724 |   |   |   | 202,724 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Bills payable                                            |   |              | 4,526   |   |   |   | 4,526 |   |   |   | 4,526 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Accrued expenses and other payables                      |   |              | 83,735  |   |   |   | 83,735 |   |   |   | 83,735 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                     |   |              | 600,445 |   |   |   | 630,171 |   |   |   | 461,053 |   |   |   | 15,283 |   |   |   | 84,939 |   |   |   | 68,896 |   |
|                                                     |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                     |   | December 31, 2014 |    |
|----------------------------------------------------------|--------|-------------------|---------|
|                                                     |   | 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                                         |   |              | 75,183  |   |   |   | 75,794 |   |   |   | 75,794 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Long-term debts                                          |   |              | 107,787 |   |   |   | 129,849 |   |   |   | 4,328 |   |   |   | 16,411 |   |   |   | 63,221 |   |   |   | 45,889 |   |
| Loans from Sinopec Group Company and fellow subsidiaries |   |              | 146,110 |   |   |   | 147,321 |   |   |   | 103,475 |   |   |   | 1,301 |   |   |   | 6,634 |   |   |   | 35,911 |   |
| Trade accounts payable                                   |   |              | 198,366 |   |   |   | 198,366 |   |   |   | 198,366 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Bills payable                                            |   |              | 4,577   |   |   |   | 4,577 |   |   |   | 4,577 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Accrued expenses and other payables                      |   |              | 104,571 |   |   |   | 104,571 |   |   |   | 104,571 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                     |   |              | 636,594 |   |   |   | 660,478 |   |   |   | 491,111 |   |   |   | 17,712 |   |   |   | 69,855 |   |   |   | 81,800 |   |
|                                                     |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                             | December 31, |   |
|--------------------------------------------------|--------------|--------|
| Gross exposure arising from loans and borrowings | 2013         |   | 2014 |   |
| US Dollars                                       | USD          |   |   | 4,118 |   | USD |   |   | 8,382 |   |
| Euro                                             | EUR          |   |   | - |   | EUR |   |   | 57 |   |
| Japanese Yen                                     | JPY          |   |   | 9,711 |   | JPY |   |   | 8,662 |   |
| Hong Kong Dollars                                | HKD          |   |   | 13,931 |   | HKD |   |   | 6 |   |

|              |   | December 31, |     |
|-------------------|--------|--------------|----------|
|              |   | 2013         |     |   | 2014 |   |
| US Dollars        |   |         | 941      |   |   |   | 1,923 |   |
| Euro              |   |         | - |   |   |   | 16 |   |
| Japanese Yen      |   |         | 21       |   |   |   | 17 |   |
| Hong Kong Dollars |   |         | 411      |   |   |   | - |   |

----

| (i) | Financial instruments carried at fair value |
|-----|---------------------------------------------|

|   | · | 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, 2013 |    |
|-----------------------------------------------------------|--------|-------------------|---------|
|                                                      |   | Level 1           |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                      |   | RMB               |    |   | RMB |   |   | RMB |   |   | RMB |   |
| Assets                                                    |   |              |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale financial assets:                      |   |              |    |   |   |   |   |   |   |   |   |   |
| - Listed                                                  |   |              | 1,964   |   |   |   | — |   |   |   | — |   |   |   | 1,964 |   |
| Derivative financial instruments:                         |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Derivative financial assets                             |   |              | 348     |   |   |   | 4,316 |   |   |   | — |   |   |   | 4,664 |   |
|                                                      |   |              | 2,312   |   |   |   | 4,316 |   |   |   | — |   |   |   | 6,628 |   |
|                                                      |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                               |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments:                         |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Embedded derivative components of the convertible bonds |   |              | — |   |   |   | 548 |   |   |   | — |   |   |   | 548 |   |
| - Other derivative financial liabilities                  |   |              | 339     |   |   |   | 2,285 |   |   |   | — |   |   |   | 2,624 |   |
|                                                      |   |              | 339     |   |   |   | 2,833 |   |   |   | — |   |   |   | 3,172 |   |

|                                 |   | December 31, 2014 |   |
|--------------------------------------|--------|-------------------|--------|
|                                 |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                 |   | RMB               |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Assets                               |   |              |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale financial assets: |   |              |   |   |   |   |   |   |   |   |   |   |
| - Listed                             |   |              | 183    |   |   | — |   |   |   | — |   |   |   | 183 |   |
| Derivative financial instruments:    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Derivative financial assets        |   |              | 2,885  |   |   |   | 9,737 |   |   |   | — |   |   |   | 12,622 |   |
|                                 |   |              | 3,068  |   |   |   | 9,737 |   |   |   | — |   |   |   | 12,805 |   |

----

| Liabilities                                               |   |    |   |   |   |   |   |   |   |    |    |   |
|-----------------------------------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|---------|--------|
| Derivative financial instruments:                         |   |    |   |   |   |   |   |   |   |    |    |   |
| - Embedded derivative components of the convertible bonds |   | — |   |   |   | 3,288  |   |   |   | — |    |   |   | 3,288 |   |
| - Other derivative financial liabilities                  |   |    | 1,920  |   |   |   | 17,070 |   |   |    | — |   |   |   | 18,990 |   |
|                                                      |   |    | 1,920  |   |   |   | 20,358 |   |   |    | — |   |   |   | 22,278 |   |

| (ii) | Fair values of financial instruments carried at other than fair value |
|------|-----------------------------------------------------------------------|

|            |   | December 31, |    |
|-----------------|--------|--------------|---------|
|            |   | 2013         |    |   | 2014 |   |
|            |   | RMB          |    |   | RMB |   |
| Carrying amount |   |         | 151,852 |   |   |   | 115,767 |   |
| Fair value      |   |         | 149,694 |   |   |   | 112,362 |   |

| 36. | ACCOUNTING ESTIMATES AND JUDGMENTS |
|-----|------------------------------------|

----

----

| 37. | PARENT AND ULTIMATE HOLDING COMPANY |
|-----|-------------------------------------|

----

|                                                                    |   | Years ended December 31, |     |
|-------------------------------------------------------------------------|--------|--------------------------|----------|
|                                                                    |   | 2012                     |     |   | 2013 |   |   | 2014 |   |
|                                                                    |   | RMB                      |     |   | RMB |   |   | RMB |   |
| The Group                                                               |   |                     |     |   |   |   |   |   |   |
| Property cost, wells and related equipment and facilities               |   |                     | 451,288  |   |   |   | 515,701 |   |   |   | 569,172 |   |
| Supporting equipment and facilities                                     |   |                     | 158,749  |   |   |   | 176,883 |   |   |   | 191,003 |   |
| Uncompleted wells, equipment and facilities                             |   |                     | 57,124   |   |   |   | 64,569 |   |   |   | 78,971 |   |
| Total capitalized costs                                                 |   |                     | 667,161  |   |   |   | 757,153 |   |   |   | 839,146 |   |
| Accumulated depreciation, depletion, amortization and impairment losses |   |                     | (316,445 | ) |   |   | (361,859 | ) |   |   | (411,450 | ) |
| Net capitalized costs                                                   |   |                     | 350,716  |   |   |   | 395,294 |   |   |   | 427,696 |   |
|                                                                    |   |                     |     |   |   |   |   |   |   |   |   |   |
| Equity method investments                                               |   |                     |     |   |   |   |   |   |   |   |   |   |
| Share of net capitalized costs of joint ventures                        |   |                     | —  |   |   |   | 14,528 |   |   |   | 15,277 |   |
|                                                                    |   |                     |     |   |   |   |   |   |   |   |   |   |

|                                                            |   | Years ended December 31, |    |
|-----------------------------------------------------------------|--------|--------------------------|---------|
|                                                            |   | 2012                     |    |   | 2013 |   |   | 2014 |   |
|                                                            |   | RMB                      |    |   | RMB |   |   | RMB |   |
| The Group                                                       |   |                     |    |   |   |   |   |   |   |
| Exploration                                                     |   |                     | 22,637  |   |   |   | 19,158 |   |   |   | 16,704 |   |
| Development                                                     |   |                     | 71,168  |   |   |   | 81,969 |   |   |   | 73,923 |   |
| Total costs incurred                                            |   |                     | 93,805  |   |   |   | 101,127 |   |   |   | 90,627 |   |
|                                                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Equity method investments                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
| Share of costs of exploration and development of joint ventures |   |                     | — |   |   |   | 35 |   |   |   | 1,381 |   |
|                                                            |   |                     |    |   |   |   |   |   |   |   |   |   |

----

|                                                                                            |   | Years ended December 31, |    |
|-------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                            |   | 2012                     |    |   | 2013 |   |   | 2014 |   |
|                                                                                            |   | RMB                      |    |   | RMB |   |   | RMB |   |
| The Group                                                                                       |   |                     |    |   |   |   |   |   |   |
| Revenues                                                                                        |   |                     |    |   |   |   |   |   |   |
| Sales                                                                                           |   |                     | 53,270  |   |   |   | 60,616 |   |   |   | 69,223 |   |
| Transfers                                                                                       |   |                     | 174,251 |   |   |   | 158,317 |   |   |   | 141,521 |   |
|                                                                                            |   |                     | 227,521 |   |   |   | 218,933 |   |   |   | 210,744 |   |
| Production costs excluding taxes                                                                |   |                     | (47,467 | ) |   |   | (52,163 | ) |   |   | (50,567 | ) |
| Exploration expenses                                                                            |   |                     | (15,533 | ) |   |   | (12,573 | ) |   |   | (10,969 | ) |
| Depreciation, depletion, amortization and impairment losses                                     |   |                     | (40,289 | ) |   |   | (46,649 | ) |   |   | (51,338 | ) |
| Taxes other than income tax                                                                     |   |                     | (39,784 | ) |   |   | (35,391 | ) |   |   | (31,995 | ) |
| Earnings before taxation                                                                        |   |                     | 84,448  |   |   |   | 72,157 |   |   |   | 65,875 |   |
| Income tax expense                                                                              |   |                     | (22,953 | ) |   |   | (20,113 | ) |   |   | (17,454 | ) |
| Results of operation from producing activities                                                  |   |                     | 61,495  |   |   |   | 52,044 |   |   |   | 48,421 |   |
|                                                                                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Equity method investments                                                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
| Share of net income for producing activities of joint ventures                                  |   |                     | — |   |   |   | 40 |   |   |   | 792 |   |
|                                                                                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Total of the Group and equity method investments results of operations for producing activities |   |                     | 61,495  |   |   |   | 52,084 |   |   |   | 49,213 |   |
|                                                                                            |   |                     |    |   |   |   |   |   |   |   |   |   |

----

|                                                                                     |   | Years ended December 31, |   |
|------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                     |   | 2012                     |   |   | 2013 |   |   | 2014 |   |
| The Group                                                                                |   |                     |   |   |   |   |   |   |   |
| Proved developed and undeveloped reserves (oil) (million barrels)                        |   |                     |   |   |   |   |   |   |   |
| Beginning of year                                                                        |   |                     | 2,848  |   |   |   | 2,843 |   |   |   | 2,841 |   |
| Revisions of previous estimates                                                          |   |                     | 9      |   |   |   | (10 | ) |   |   | (38 | ) |
| Improved recovery                                                                        |   |                     | 163    |   |   |   | 166 |   |   |   | 154 |   |
| Extensions and discoveries                                                               |   |                     | 151    |   |   |   | 175 |   |   |   | 141 |   |
| Production                                                                               |   |                     | (328   | ) |   |   | (333 | ) |   |   | (326 | ) |
| End of year                                                                              |   |                     | 2,843  |   |   |   | 2,841 |   |   |   | 2,772 |   |
|                                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Non-controlling interest in proved developed and undeveloped reserves at the end of year |   |                     | 32     |   |   |   | 31 |   |   |   | 32 |   |
| Proved developed reserves                                                                |   |                     |   |   |   |   |   |   |   |   |   |   |

| Beginning of year                                                                            |   |   | 2,545  |   |   |   | 2,577  |   |   |   | 2,562  |   |
|----------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| End of year                                                                                  |   |   | 2,577  |   |   |   | 2,562  |   |   |   | 2,529  |   |
| Proved undeveloped reserves                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                                            |   |   | 303    |   |   |   | 266    |   |   |   | 279    |   |
| End of year                                                                                  |   |   | 266    |   |   |   | 279    |   |   |   | 243    |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved developed and undeveloped reserves (gas) (billion cubic feet)                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                                            |   |   | 6,709  |   |   |   | 6,730  |   |   |   | 6,493  |   |
| Revisions of previous estimates                                                              |   |   | 278    |   |   |   | (326   | )      |   |   | 175    |   |
| Improved recovery                                                                            |   |   | 109    |   |   |   | 35     |   |   |   | 48     |   |
| Extensions and discoveries                                                                   |   |   | 232    |   |   |   | 714    |   |   |   | 711    |   |
| Production                                                                                   |   |   | (598   | )      |   |   | (660   | )      |   |   | (712   | )      |
| End of year                                                                                  |   |   | 6,730  |   |   |   | 6,493  |   |   |   | 6,715  |   |
| Proved developed reserves                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                                            |   |   | 4,246  |   |   |   | 5,439  |   |   |   | 5,781  |   |
| End of year                                                                                  |   |   | 5,439  |   |   |   | 5,781  |   |   |   | 5,987  |   |
| Proved undeveloped reserves                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning of year                                                                            |   |   | 2,463  |   |   |   | 1,291  |   |   |   | 712    |   |
| End of year                                                                                  |   |   | 1,291  |   |   |   | 712    |   |   |   | 728    |   |
| Share of proved developed and undeveloped reserves of joint ventures (oil) (million barrels) |   |   |   |   |   |   |   |   |   |   |   |   |

| Beginning of year                                                                               |   |   | — |   |   |   | — |   |   |   | 289    |   |
|-------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|
| End of year                                                                                     |   |   | — |   |   |   | 289     |   |   |   | 275    |   |
| Share of proved developed and undeveloped reserves of joint ventures (gas) (billion cubic feet) |   |   |    |   |   |   |    |   |   |   |   |   |
| Beginning of year                                                                               |   |   | — |   |   |   | — |   |   |   | 27     |   |
| End of year                                                                                     |   |   | — |   |   |   | 27      |   |   |   | 26     |   |
| The Group and share of joint ventures                                                           |   |   |    |   |   |   |    |   |   |   |   |   |
| Proved developed and undeveloped reserves (oil) (million barrels)                               |   |   |    |   |   |   |    |   |   |   |   |   |
| Beginning of year                                                                               |   |   | 2,848   |   |   |   | 2,843   |   |   |   | 3,130  |   |
| End of year                                                                                     |   |   | 2,843   |   |   |   | 3,130   |   |   |   | 3,047  |   |
| Proved developed and undeveloped reserves (gas) (billion cubic feet)                            |   |   |    |   |   |   |    |   |   |   |   |   |
| Beginning of year                                                                               |   |   | 6,709   |   |   |   | 6,730   |   |   |   | 6,520  |   |
| End of year                                                                                     |   |   | 6,730   |   |   |   | 6,520   |   |   |   | 6,741  |   |

----

|                                                                       |   | Years ended December 31, |      |
|----------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                       |   | 2012                     |      |   | 2013 |   |   | 2014 |   |
|                                                                       |   | RMB                      |      |   | RMB |   |   | RMB |   |
|                                                                       |   |                     |      |   |   |   |   |   |   |
| The Group                                                                  |   |                     |      |   |   |   |   |   |   |
| Future cash flows                                                          |   |                     | 2,029,836 |   |   |   | 1,894,416 |   |   |   | 1,807,330 |   |
| Future production costs                                                    |   |                     | (965,683  | ) |   |   | (902,692 | ) |   |   | (823,575 | ) |
| Future development costs                                                   |   |                     | (50,162   | ) |   |   | (46,784 | ) |   |   | (46,684 | ) |
| Future income tax expenses                                                 |   |                     | (176,591  | ) |   |   | (145,198 | ) |   |   | (135,219 | ) |
| Undiscounted future net cash flows                                         |   |                     | 837,400   |   |   |   | 799,742 |   |   |   | 801,852 |   |
| 10% annual discount for estimated timing of cash flows                     |   |                     | (322,234  | ) |   |   | (288,341 | ) |   |   | (288,393 | ) |
| Standardized measure of discounted future net cash flows                   |   |                     | 515,166   |   |   |   | 511,401 |   |   |   | 513,459 |   |
| Discounted future net cash flows attributable to non-controlling interests |   |                     | 7,059     |   |   |   | 5,149 |   |   |   | 4,815 |   |
| Equity method investments                                                  |   |                     |      |   |   |   |   |   |   |   |   |   |
| Standardized measure of discounted future net cash flows                   |   | —                  |      |   |   | 23,261 |   |   |   | 19,650 |   |

|                                                                 |   | Years ended December 31, |     |
|----------------------------------------------------------------------|--------|--------------------------|----------|
|                                                                 |   | 2012                     |     |   | 2013 |   |   | 2014 |   |
|                                                                 |   | RMB                      |     |   | RMB |   |   | RMB |   |
|                                                                 |   |                     |     |   |   |   |   |   |   |
| Sales and transfers of oil and gas produced, net of production costs |   |                     | (104,319 | ) |   |   | (131,379 | ) |   |   | (128,182 | ) |
| Net changes in prices and production costs                           |   |                     | (28,277  | ) |   |   | (33,245 | ) |   |   | (25,427 | ) |
| Net change due to extensions, discoveries and improved recoveries    |   |                     | 73,394   |   |   |   | 75,336 |   |   |   | 68,147 |   |
| Revisions of previous quantity estimates                             |   |                     | 12,945   |   |   |   | (10,478 | ) |   |   | (1,453 | ) |
| Previously estimated development costs incurred during the year      |   |                     | 19,526   |   |   |   | 17,831 |   |   |   | 22,286 |   |
| Accretion of discount                                                |   |                     | 40,767   |   |   |   | 62,380 |   |   |   | 60,425 |   |
| Net change in income taxes                                           |   |                     | 4,630    |   |   |   | 15,790 |   |   |   | 6,262 |   |
| Others                                                               |   |                     | 261      |   |   | — |   |   | — |   |
| Net change for the year                                              |   |                     | 18,927   |   |   |   | (3,765 | ) |   |   | 2,058 |   |
|                                                                 |   |                     |     |   |   |   |   |   |   |   |   |   |

| F-73 |
|------|