In 2024, our capital and financial subsidiaries thoroughly carried out the "Year of Deepening Capital and Financial Services to Support Core Business" initiative, making every effort to build a new model for the high-quality development of industrial capital and finance. The resulted profit stood at 7.09 billion yuan, an increase of 1.87%.

Capital Pool

We strengthened the centralized management of the funds, improved fund utilization efficiency, reduced fund raising costs, and prevented and controlled fund risks. The average daily scale of domestic and foreign credit assets reached 114.8 billion yuan and USD 8.2 billion respectively, an increase of 7.1 billion yuan and USD 700 million, with loan interest rates down by 7 basis points and 12 basis points. We built a global service and support platform for fund and finance, injected financing exceeding 16 billion yuan for regional subsidiaries, established mutual recognition of bill settlement with multiple central SOEs, and handled fund settlements of 69 trillion yuan domestically and USD 1 trillion overseas, both hitting record highs. By innovating carbon asset mortgage products, we successfully handled the first "carbon finance special loan" business, and issued ultra-short-term financing bonds on behalf of Sinopec Group through the platform, and helped Sinopec Capital Co., Ltd issue its first science and technology innovation corporate bonds, cutting over 3 billion yuan in cost cumulatively for our subsidiaries through synergy. We boosted the construction of Sinopec's cross-border fund pool, successfully handled its first multi-lateral central bank digital currency bridge business, and achieved the overseas launch of the Cross-border Interbank Payment System (CIPS).

Venture Investment

We seized the new development opportunities, cultivated new drivers of growth, and continued to heighten the closed-loop management of investment in regards to "research, investment, management, and exit", completing research and analysis on 5 major sectors, 25 industries, and 77 business lines. We completed the delivery of 9 strategic emerging industry projects, with a cumulative delivery amount of 1.52 billion yuan. A diversified fund support system was built. The Administrative Measures for Sinopec's Investment Fund in Private Equity (Trial) was issued. The hydrogen fund plan was approved by the Company. The Zhaoyang Fund secured an IOI exceeding 5 billion yuan, and the first phase of the Enze Fund completed its investment period, with the second phase launching fundraising. During the investment period of the Enze Fund, a total of 19 companies were invested and delivered, with a cumulative investment of 1.48 billion yuan, yielding a 1.63-fold return and an IRR of 21.63%. Efforts were made to leverage capital for scientific and technological achievement transformation. The first phase of contribution for Sinopec Research Institute of Safety Engineering Company's equipment capital increase was completed. The optical fiber project of Sinopec Matrix and the Innovative Startup Project (Chuangqi) of Yanshan Petrochemical completed investment decisions, accelerating the transformation of scientific and technological achievements into tangible productive forces.

Financial

Services Multiple approaches were adopted to support the development of core businesses. Our insurance business arranged over 2,000 projects for our core businesses, including property insurance, engineering insurance, cargo transportation insurance, and credit insurance, providing an additional insurance coverage of over 50 billion yuan, saving insurance fees for core businesses by 75 million yuan, and assisting our subsidiaries in completing claims settlement exceeding 500 million yuan. The factoring business allocated over 10 billion yuan to more than 1,200 suppliers of over 40 subsidiaries for our core business, alleviating the capital payment pressure of the subsidiaries of core business. The leasing business pressed ahead with leasing services for transportation vessels and oil service equipment, with new investments in core business and industrial chain projects approaching 4 billion yuan, and the balance of assets under management exceeding 10 billion yuan. The futures business used spot-futures integrated risk management tools to serve the sales of chemicals and fuel oil, with a scale exceeding 50,000 tonnes. The annual investment return rate of Sinopec Annuity Plan was 4.38%, and the scale of the annuity funds exceeded 100 billion yuan. The online loan facilitation scale of the digital intelligence exceeded 100 million yuan, and the mall.sinopec.com became a trade union-wide inclusive welfare service platform.