Sinopec regards technological innovation as the core driving force for developing new quality productive forces and remains committed to its role as a "national strategic force in science and technology". The Company has pushed forward reforms in its scientific and technological innovation systems and mechanisms while strengthening the in-depth integration of its innovation and industrial chains. Furthermore, we have consistently tackled challenges in key core technologies, conducting cutting-edge basic research, driving digital transformation, and continuously enhancing its leadership and support in scientific and technological innovations, aiming to accelerate the establishment of a new innovation paradigm.

Management of scientific and technological innovation system and mechanism

Sinopec has proactively aligned with the national innovation system, restructuring and optimizing four of its key national laboratories, including the National Key Laboratory for Shale Oil and Gas Enrichment Mechanism and Efficient Development. The Company has also accelerated the establishment of various national-level innovation platforms, such as the Key Laboratory for National Energy Carbonate Oil and Gas and the Key Laboratory for Safety Risk Warning and Intelligent Control Technology of Hazardous Chemicals, both of which have been approved for construction. Furthermore, Sinopec has continued to strengthen its scientific and technological innovation systems and mechanisms. This includes efforts such as launching the "Seedling Plan" pilot project, refining the "Open Competition" mechanism, and enhancing the assessment and evaluation mechanism as well as the incentive framework for scientific and technological innovations. The Company has also systematically advanced the development of new research and development institutions, such as the Ningbo New Materials Research Institute. As part of the Science and Technology Reform Action, all three "Enterprises Implementing Science and Technology Reforms" were awarded the title of "Benchmark Company", with an additional enterprise included in the 2023 expansion list. Sinopec has also made great efforts to promote the development of its science and technology incubators, registered and established incubator companies, and successfully hosted the 4th Yixing Innovation and Creativity Competition of Central Enterprises.

Prioritizing the cultivation of innovative talent, Sinopec has launched a Youth Doctoral Support Plan, promoted special pilot projects for reforming engineering master's and doctoral programs, and carried out enterprise-led training initiatives, research projects, and mentor matching to establish a robust talent development and scientific and technological support system. The Company has also provided stable support to strategic scientists and leading experts, enabling them to pursue independent, exploratory research in the frontier fields of the energy and chemical industries. Furthermore, Sinopec supports talent in achieving breakthroughs in cutting-edge and innovative technology fields. Adhering to the principle of "reducing burdens on scientific researchers while empowering science and technology management", Sinopec has accelerated the development of its science and technology management platform. In 2023, the Company presented 2 Science and Technology Innovation Merit Awards, over 120 Science and Technology Awards, and honored 20 outstanding innovation teams within the organization.

Sinopec has also organized scientific and technological innovation exchange events and hosted the first State-Owned Enterprise Discovery and Invention Forum under the Zhongguancun Forum, marking the first global initiative by a Chinese enterprise to strengthen basic research collaboration. Additionally, Sinopec successfully convened the Sinopec Future Development Forum on Science and Technology Innovation.

Transformation and application of scientific and technological innovations

Sinopec fully leverages scientific and technological innovation to support current economic development and shape future growth. The Company has made continuous progress in researching core technologies, established a relatively complete intellectual property system, and was the first in China to complete the innovation and intellectual property management capability assessment, earning the system-level operator title. For five consecutive years, Sinopec has ranked first among central enterprises in patent quality, maintaining a leading position in overall patent strength.

Digital transformation

Intelligent development

Smart factory construction

Since initiating smart factory construction, Sinopec has seen several of its refining and chemical enterprises recognized as national pilot demonstration factories and benchmark enterprises in smart manufacturing. In 2023, Sinopec further advanced the in-depth integration of digital technology within the petroleum and petrochemical industries. Four more enterprises were designated as national smart manufacturing demonstration factories, and the established smart refining and chemical facilities have reported an average labor productivity increase of over 20%. Additionally, six enterprises were recognized as 5G factories in 2023, becoming advanced facilities characterized by extensive connectivity of production units, deep integration of information systems, full data utilization, and effective support for innovative applications.