Sinopec remains committed to upholding high standards in its bidding and tendering practices through an open and transparent procurement system. The Company has continued to optimize its specialized material supply framework and standardized the management of its suppliers and contractors. These efforts have promoted coordinated development across the industrial chain, enhanced supply chain efficiency and integrity, and contributed to building a resilient and sustainable industrial ecosystem.

Bidding and Tendering Management

Sinopec has fully implemented the guiding principles of key national policies, including the Opinions of the General Office of the State Council on Innovating and Improving Systems and Mechanisms to Promote Regulated and Healthy Development of the Tendering and Bidding Market and the Rules for Fair Competition Review in the Field of Tendering and Bidding. To further improve its management system, the Company has issued the Notice on Further Preventing Bid Rigging and Collusive Bidding and the Notice on Implementing Pilot Programs to Expand the Scope of Centralized Bidding, and formulated the Work Plan for Optimizing Bid Evaluation Methods. A new electronic bidding and tendering platform has also been launched across the Company to promote standardized tendering, streamlined bidding processes, and data-driven bid evaluations, helping to advance high-quality procurement.

Transparent Procurement

Sinopec has implemented the Sinopec Ten Prohibitions for Material Procurement and the Eight Prohibitions for Bidding Practitioners, while stepping up efforts to promote awareness, education, and training on relevant rules and regulations. The Company has also continued to improve procurement operations and strengthened supervision and management of material procurement to foster an open, transparent, and integrity-focused material supply environment. Furthermore, Sinopec has reinforced the prevention and control of integrity risks among suppliers, requiring all registered suppliers to sign an Integrity Responsibility Statement and a Letter of Commitment on Compliance, both of which clearly define the obligations of suppliers and their personnel to uphold integrity and act against corruption, commercial bribery, unfair competition, and other misconduct. The Company has also held dialogues with strategic suppliers to explore ways to advance joint efforts in promoting integrity, supporting deeper strategic collaboration. In line with its policies, Sinopec has addressed and publicly disclosed supplier violations related to integrity. In 2024, 16 suppliers found to have breached the Integrity Responsibility Statement were penalized.

Supplier Management

Enhancing management system

We have revised and released the Material Procurement and Supply Resource Management Measures to further cultivate a transparent and resilient material supply ecosystem.

We have updated and refined the qualification review standards for material group procurement suppliers, completing revisions to 318 items related to supplier qualification reviews and on-site inspection criteria.

Preventing and controlling supply risks

Practicing the green procurement principle

We have formulated the Sinopec Guidelines on Green Enterprise Evaluation (2024), which set out clear evaluation criteria for green supply chains. These criteria cover all aspects of the supply chain, including green procurement, green logistics, green packaging, and green disposal, supporting the development of a green supply chain.

We have encouraged suppliers to adapt and enhance their qualifications, standards, and certification materials related to green procurement, with a particular focus on green product certification, green supply chain management systems, product carbon footprint assessments, and CSR performance.

We have introduced pilot applications of carbon footprint data to promote low-carbon procurement, helping guide suppliers in strengthening their green and low-carbon management practices.

Strengthening training and guidance

Contractor Management

We have formulated and issued the Sinopec Management Regulations on Engineering Construction and Inspection and Maintenance Contractors and the Sinopec Measures for Personnel Training and Assessment of Engineering Construction Contractor Projects, among other related policies, to ensure comprehensive contractor management. The Company has adopted a combined approach of "red line violation penalties + scoring-based quantitative assessment" in contractor evaluations. Any contractors found in breach of the Integrity Responsibility Statement or Integrity Responsibility Agreement, or involved in misconduct such as abuse of power or bribery, will be placed on the Company's blacklist of engineering contractors. Sinopec has also established an evaluation mechanism to assess the alignment between contractor qualifications, capabilities, and resource availability with project requirements, while enforcing strict management of key roles including HSE, quality, construction, and technical managers. In 2024, the Company conducted pre-employment training and assessments for contractor team leaders, certifying 3,476 individuals as qualified for their roles. Additionally, Sinopec has established a contractor management information system covering 42,000 contractors and 327,000 personnel across multiple fields. During the year, 107 contractors and 44 individuals were blacklisted for violations, with their information shared internally. To further safeguard practitioners' rights and interests, Sinopec has also set up a supervision and regulatory center.

Furthermore, the Company has required all contractors, as stipulated in its standard bidding documents, to hold certifications in quality, environmental, and occupational health and safety management systems. Bidders are automatically disqualified if they have, within the past three years, been involved in major engineering safety incidents, caused significant social impact due to environmental violations, or been blacklisted by government authorities. A dedicated HSE review is also conducted during the evaluation process, and any bidder receiving a score below 80 in this review is disqualified. In addition, Sinopec has clearly specified in its contract terms and conditions the contractors' responsibilities for safety, environmental protection, and corresponding compliance measures.

Industry Chain Management

Strengthening strategic partnerships

Sinopec has advanced its open cooperation strategy based on the principles of mutual benefit and shared development, actively engaging in in-depth collaboration and exchanges with governments, enterprises, and academic institutions to expand cooperation, achieve synergy, and optimize resource sharing. At the 7th China International Import Expo in November 2024, Sinopec signed procurement agreements with 38 partners from 18 countries and regions. These agreements covered 27 product types in 10 categories, including crude oil, chemicals, equipment, materials, and consumer goods, with a total contract value of USD 40.9 billion.