Sinopec remains firmly committed to its core responsibility as a key incubator of China's strategic scientific and technological capabilities. The Company has continued to strengthen its role in leading and advancing scientific and technological innovation, accelerating breakthroughs in critical core technologies, and deepening reforms to its scientific and technological systems and mechanisms. These efforts have effectively promoted the deep integration of scientific and technological innovation and industrial innovation, fully harnessing the role of scientific and technological innovation in supporting and driving Sinopec's high-quality development.

Management of Scientific and Technological Systems and Mechanisms

Sinopec has actively aligned itself with the national scientific and technological innovation system, accelerating the development of national-level innovation platforms. The Company has successfully obtained approval to establish a national key laboratory focused on enrichment mechanisms and the efficient development of deep geothermal energy, and launched the joint development of the Huairou Lab Xinjiang Base and the National Innovation Center for Oil and Gas Geophysical Exploration Technology. Sinopec now operates 8 directly affiliated research institutes, 2 overseas R&D institutions, and more than 50 research institutions under its affiliated subsidiaries. It also ranks among the top central SOEs in the number of innovation consortiums it has initiated, leads the energy and chemical industries in the number of national key laboratories established, and holds the leading position among central SOEs for the number of original technology incubation bases.

Transformation and Application of Scientific and Technological Innovations

Sinopec has actively advanced its patent quality improvement initiative, strengthened the high-quality development and rigorous protection of intellectual property and promoted its efficient utilization. At the 25th China Patent Awards, the Company received one Gold Award, one Silver Award, and three Excellence Awards. It also earned three Gold Medals and one Silver Medal at the 49th International Exhibition of Inventions in Geneva. In 2024, 5 Sinopec technologies were recognized as Outstanding Cases of Artificial Intelligence (AI) Applications in China's Oil and Gas Industry, and 12 products successfully passed the national accreditation for patent-intensive products. Sinopec was also awarded one First Prize, two Second Prizes, one Third Prize, and four Excellence Awards at the Shining Star Innovation and Creativity Competition for Central State-Owned Enterprises. In addition, Sinopec Catalyst and Sinopec Dezhou Continental Shelf Petroleum Engineering Technology were recognized among the eighth batch of national champions in specialized manufacturing. Five pieces of technical equipment developed by Sinopec were selected for inclusion in the fourth batch of first units (sets) of major technical equipment in the energy sector. Sinopec's demonstration project for producing POE from high-end polyolefins and its million-metric-ton facility construction project at the Shengli Jiyang Shale Oil Field were also recognized among the first batch of application and expansion programs for scientific and technological achievements by central SOEs. Furthermore, three Sinopec achievements were included in the Product Manual of Scientific and Technological Innovation Achievements of Central State-Owned Enterprises (2023 Edition), published by SASAC.

Digital and Intelligent Transformation

Intelligentized development

Sinopec has actively promoted the deep integration of digital and intelligent technologies into its core operations. It became the first among all central SOEs to implement initiatives such as smart treasury management, smart supervision, smart factories, digital service trade, data governance, and network security—many of which have reached industry-leading levels. The Company has also proactively adapted to evolving trends to comprehensively build a new information management system and operational framework.

We have developed comprehensive and systematic plans to adopt AI, promoting the effective application of AI technologies across production, business operations, and other key areas.

We have strengthened AI applications in investment, finance, risk management, and supervision, while also enhancing system integration and application upgrades in human resources management, extensive collaboration, and related fields.

We have released and put into operation the core applications of Intelligent Operation Center 2.0, delivering strong results in the digitalization of business areas such as environmental protection, equipment management, and logistics. We have also steadily advanced the development of intelligent fields, factories, stations, and institutions, further raising the levels of digitalization and intelligentization across engineering construction departments and activities.

We have strengthened interconnectivity, market sharing, and resource integration across epec.com (procurement platform), chememall.com (e-commerce platform), and ejoy365.com (Easy Joy retail platform). We have also completed planning for an integrated platform to support new retail services across oil products, natural gas, hydrogen, electricity, and supplementary services. In addition, we have developed a unified customer relationship management application and launched a digital application for annuity services on sinopecfintech.com.

Sinopec has consistently attached great importance to data security, establishing a Cybersecurity and Informatization Committee and issuing a series of related rules and standards, including the Sinopec Data Resource Management Regulations and the Sinopec Cybersecurity Management Regulations. The Company has also implemented a long-term mechanism for the annual assessment and evaluation of its cybersecurity and informatization performance, along with a cybersecurity reporting system. Additionally, it has adopted multiple technologies to build a comprehensive data life-cycle protection framework, actively safeguarding critical data and personal privacy.

Smart factory construction

Sinopec has launched the Smart Factory 3.0 initiative at Zhenhai Refining & Chemical and Zhongke Refinery & Petrochemical, completing the localization verification and deployment of allocation and scheduling software for Zhenhai Refining & Chemical, as well as the networking and commissioning of the multi-plant optimization model for Zhongke Refinery & Petrochemical. The Company has also finalized the top-level design for Sinopec Jiujiang's Smart Factory 3.0 initiative. In addition, the Company has produced a research report on the digital and intelligent transformation of traditional refining enterprises, conducted maturity assessments for intelligent manufacturing at 23 enterprises, and identified 21 key tasks across five categories. In 2024, seven Sinopec subsidiaries were recognized as Outstanding Smart Factories of the Year by the Ministry of Industry and Information Technology, with Zhenhai Refining & Chemical and Zhongke Refinery & Petrochemical selected as flagship smart factories. Moreover, Zhongke Refinery & Petrochemical's Smart Factory was listed among the "China Intelligent · Zero Carbon" projects published by Xinhua News Agency.