The year 2024 was an extremely extraordinary year in the history of Sinopec's development. In 2024, faced with the accelerated changes unseen in a century and the complex and severe operating environment, we insisted on the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era, thoroughly studied and implemented the spirit of the 20th CPC National Congress and the 2nd and 3rd Plenary Sessions of the 20th CPC Central Committee, continued to benchmark the spirit of General Secretary Xi Jinping's important directives, and carried out the thematic action of "Keeping in Mind the Instructions, Advancing with Gratitude, Innovating for Development, and Striving for Excellence", tackled a lot of difficulties, and achieved new progress and new results in all aspects of work. Major economic indicators maintained a good level. In this historic year that marked the 75th anniversary of the founding of the People's Republic of China, we delivered good performance.

We made utmost efforts to ensure national energy security.  We implemented the Seven-Year Action Plan and strived to increase mineral rights. The Company's total area of mining rights were stabilised. A number of major breakthroughs were made in oil and gas exploration. In both the Beibu Gulf Basin and the Jianghan Basin, we discovered ten million tonnes of additional reserves. Significant progress was made in the Cambrian system in the Sichuan Basin in the exploration of deep shale gas. Fuling became the first big shale gas field with more than one trillion cubic metres of proved reserves in the country. Southwest Oil and Gas Company built the "Ten Billion Cubic Meters" gas field. Shengli Jiyang Shale Oil National Demonstration Area completed its production target one year ahead of schedule, with crude oil production increase hitting a new high in eleven years. We accelerated the pace of high-quality going-global, successfully signed contract for the Silleno project in Kazakhstan and LNG long term HOA with TotalEnergies, while SIPC achieved ten-billion-yuan both in the total profit and free cash flow for three consecutive years. We also steadily advanced the diversification of oil and gas imports, and effectively improved the ability of guaranteeing energy security.

We unswervingly promoted transformation and upgrading, and accelerated the development of new quality productive forces.  Adhering to the equal emphasis on building world-class refining and chemical bases and cultivating highly competitive specialised subsidiaries, we built the company's first 40-million-tonne refining and chemical base in Zhenhai, and put into operation the ethylene unit in Nangang, Tianjin. The Company's is among the world's leading in terms of percentage of 10-million-tonne refining subsidiaries. The equity production capacity of ethylene ranked second in the world. The share of new chemical materials continued to expand. The volume and profit of refining specialties, such as high-end carbon materials, both increased. The Company conscientiously implemented the decision-making and deployment of the CPC Central Committee and the State Council on large-scale equipment renewal, set up a task force, formulated an action plan, and vigorously promoted the renewal of old equipment. We accelerated the transformation to an integrated energy service provider of "gasoline, diesel, gas, hydrogen, electricity and non-fuel services", with the proportion of integrated energy refuelling stations exceeding 20%. The hydrogen energy equipment manufacturing base and the specialty oil products company were formally inaugurated. More than 1,000 gas refuelling stations and over 10,000 charging and battery swapping stations were built cumulatively. The area of geothermal heating exceeded 100 million square metres.

We strengthened innovation-driven development to achieve high-level scientific and technological self-reliance.  Striving to play the role of national strategic scientific and technological power, the Company led the construction of five national key laboratories and participated in the construction of two, the number of which ranking first in the energy and chemical industry. We promoted the integration and development of science and technology innovation and industrial innovation, with the number of original technology curators ranking first among central enterprises. The future space research tasks were launched and implemented with outstanding results in a number of core technologies, such as electric fracturing, high-purity helium, specialty oil products and ultra-high molecular weight polyethylene fibers, etc. EVOH and other new products achieved industrial production. Domestically produced bio-jet fuel was refilled to the domestic large aircraft for the first time. The first large-scale chemical pilot base was built in Tianjin. The first ISO international technical specification in the field of thick oil development in China was successfully established.

We deepened reform and management, and endeavoured to build a modern state-owned enterprise.  Adhering to the spirit of the Third Plenary Session of the Twentieth Central Committee of the CPC as a guideline, we determined the overall plan and key tasks of the Company to further deepen the reform, pushed forward the reform deepening and upgrading actions, clarified the boundaries of the responsibilities of the working departments of the Leading Party Group, set up the Segments Coordination Committee, strengthened the capital operation and management functions of the head office, and completed 75% of the overall task of the reform at the Group level, and ranked first as the A-grade enterprises in the 2023 annual assessment of the SASAC of the State Council. We accelerated the pace of building a world leading company, comprehensively promoted strict management, lean management and compliance management, continuously improved the internal control system, effectively curbed the momentum of rigid growth of labour costs, kept the loss of subsidiaries at a historically low level, and successfully concluded the three-year action to improve the quality of listed companies. The Company also made every effort to cooperate with the National Audit Office for the economic responsibility audit. The Group carried out in-depth pilot projects for the construction of world-class enterprises under the rule of law. We strengthened the control of high-risk businesses such as foreign exchange, credit and derivatives on all fronts, and held the bottom line of not incurring systemic risks.

We continued to pay close attention to safety and environmental protection, solidifying the foundation of high-quality development.  We thoroughly studied and implemented General Secretary Xi Jinping's important discussions and instructions on safety, implemented the three-year action plan of the Safety Committee of the State Council, carried out the action of the Year of Safety Management Enhancement, with members of the leading Party group shouldering responsibilities for the major safety risks, increased the weight of the safety performance appraisal for the leading personnel, formulated the list of safety responsibilities and the list of tasks for the positions of the entire staff, and carried out the dynamic investigation and rectification of risks and hidden dangers on a hierarchical and classification basis. The Company generally maintained a safe and stable operation. We did a good job in cooperating with the central ecological environment protection inspectors, and have been fully recognized by the Ministry of Ecology and Environment and the inspection team for taking rectification actions during the inspection, handling immediately once receiving the tasks and systematically implementing measures. We steadily pushed forward the "Eight Carbon Peaking Actions", launched the implementation of the second phase of the Green Enterprise Action Plan, continued to fight the battle of pollution prevention and control, paid strict attention to ecological environmental protection of coastal subsidiaries located near the Yangtze River, the Yellow River and the ocean, and initiated the establishment of an international CCUS technology innovation cooperation organisation. The Company was awarded the title of "China's Industrial Carbon Peak Leader".

We promoted strict governance of the Party and created a good political ecology.  We deeply studied and implemented General Secretary Xi Jinping's important thoughts on Party building and on the Party's self-revolution, and continued to promote the systematic, standardised and institutionalised Party building. The Company was rated A grade in the assessment of the responsibility system for Party building work of central enterprises for four consecutive years. It deepened the implementation of the echelon training plan for leaders, carried out the introduction of high-level talents globally, selected six people to the list of top scientific and technological talents training projects of central enterprises, and made a speech at the 2024 National Conference of Organisation as the only representative of a central enterprise. We carried out political supervision in the safety and environmental protection field, promoted the key areas of special governance, explored the establishment of the working mechanism of the investigation and treatment on both work style and corruption, maintained a high-pressure situation of punishing corruption, completed inspection of the party organisations of 36 subsidiaries (departments), and remained a strict tone consistently to the end.

The hard-earned achievements are results of the care of the CPC Central Committee with Comrade Xi Jinping at its core, the guidance and assistance of relevant government authorities and all sectors of society, the trust of our customers and consumers, the support of our partners at home and abroad, and the hard work and combined efforts of all employees of the Company. On behalf of the Board of Directors, the management and all staff of the Company, I would like to express heartfelt thanks to all friends who have shown their support and assistance to us.

The year 2025 is the concluding year of the "14th Five-Year Plan" period, and is of great significance to complete all the tasks of this period. We will unite more closely around the CPC Central Committee with Comrade Xi Jinping at its the core, bear in mind General Secretary Xi Jinping's ardent instructions, bravely tackle the difficulties and continue to promote the Company's high-quality development to a new level, build SINOPEC into a strong strategic support, a strong power to serve for people's livelihoods, and a strong appeal of the spirit, and work hard to write a new chapter of Chinese modern industries, so as to contribute more to the construction of a strong country and the national rejuvenation.