2022 was an extremely extraordinary, difficult, and challenging year with complicated and severe environment, unfavorable situation beyond expectation and huge impact arriving one after another. Under the strong leadership of the CPC Central Committee with General Secretary Xi Jinping at its core, Sinopec took the study and implementation of the guiding principles of the 20th CPC National Congress as a strong driving force and used the important instructions given by General Secretary Xi Jinping during his inspection tour to Shengli Oilfield as the guidance. We fully carried out the strategy of being a world-leading company, pooled strength for high quality development, and ensured the Party's full and rigorous self-governance. By forging ahead with resolve, we achieved gratifying results and significant progress on all fronts, and made the grade with our all-out efforts during the politically-important year.

We solidly carried out the thematic action, strived to transform the strategic deployment of the 20th CPC National Congress and the instructions of General Secretary Xi Jinping into concrete actions for making new achievements.  We focused on studying and implementing the guiding principles of the 20th CPC National Congress as well as the important instructions given by General Secretary Xi Jinping during his inspection tour to Shengli Oilfield, studied the key tasks for now and the coming future, pinpointed the new missions for Sinopec on the new journey, deployed high quality development action and mobilized all employees to strive for a new chapter of Sinopec through a Chinese path to modernization. We conducted the thematic action of "Bearing in mind the Instructions, Striving for New Achievements, and Celebrating the 20th National Congress of the CPC”, grappled with 45 key tasks and worked as one to win the campaigns of enhancement in production and operation, breakthrough in scientific and technological innovation, completion of deepening reform action, pandemic prevention and control and guarantee of safe production. The Company's adaptability to changes and confidence to achieve favorable business growth were significantly boosted. We greatly increased the awareness to safeguard the “two affirmations” and ensure the “two upholds”.

We firmly shouldered the three core responsibilities, marched towards a new journey of high-quality development with resolution and perseverance, and bore more fruitful results.  We kept in mind the earnest instructions of “securing the fundamental supply of energy” from General Secretary Xi Jinping. We vigorously implemented the seven year campaign to boost domestic reserve and production, launched the “Deep Earth” Project, and promoted the construction of Shengli Jiyang Shale Oil National-level Demonstration Zone with high standards. Our domestic oil and gas production hit record high and Sinopec International Petroleum Exploration and Production Corporation made important progress in reducing losses. We spared no efforts to strengthen our dominant position in industries with strong advantages and accelerated the construction of world-class refining and chemical bases. Zhenhai Phase I and Jiujiang Aromatics projects were put into operation, and Hainan Ethylene project achieved mechanical completion, driving the Company’s ethylene equity production capacity rising to world’s No. 2. We actively integrated into the national innovation system, dedicated ourselves to the national strategic scientific and technological research, and accomplished the special projects of SASAC (State-owned Assets Supervision and Administration Commission of the State Council) and the dedicated projects of NEA (the National Energy Administration) for shoring up weaknesses ahead of schedule, with significant progress achieved in tackling a number of key and core technologies. We fulfilled all the tasks under the Three-Year Reform Action for SOEs with high quality and was awarded the A-level assessment by SASAC and the title of “Demonstration Enterprise of SOE Corporate Governance”. Facing various unexpected factors superimposed with risks and challenges, we calmly responded, made steady progress and worked diligently. In 2022, the Company achieved annual operating revenue of 3.37 trillion yuan, an increase of 20.7% year-on-year (the same below), a total profit of 120.47 billion yuan, an increase of 3.34%, and a net profit of 95.24 billion yuan, an increase of 8.19%, all reaching the best level in history and contributing to stabilizing the macroeconomic fundamentals.

We conscientiously undertook the missions of serving society and benefiting the people, and actively fulfilled our social responsibilities, highlighting the image of “a good company serving the public”.   We made every endeavor to obtain energy resources, continuously increased the natural gas supply during the heating season, and safeguarded a warm winter for billions of households. We actively explored the assistance model with central SOE characteristics for rural vitalization and won the evaluation as “good” for 5 consecutive years for targeted assistance programs. We successfully completed the mass production of the “Flying” torch, lit the main cauldron of the “Bird's Nest” with high-purity hydrogen, and won praise from all parties for providing high quality service to the Beijing Winter Olympics. We took the lead when facing difficult situations and emergencies such as fighting the pandemic and disaster relief and won awards for making significant contributions. We further carried out public welfare projects such as the “Spring Bud Service Station”, “Drivers' Home”, and “Love Station”. We reduced rent to help small and medium-sized enterprises and individual businesses overcome difficulties, fully guaranteed the wages of migrant workers, and comprehensively settled the debts of private enterprises. A special program to boost Xinjiang’s clothing industry was also acknowledged by SASAC. With the implementation of these creative, warm-hearted, and down-to-earth social welfare projects, Sinopec further manifested its image as “a good company serving the public”.

We consistently, steadfastly, and comprehensively enforced the Party's full and rigorous self-governance, continuously improved the level of Party building work, and consolidated the political ecology featuring uprightness and entrepreneurship.  We followed the general requirements for Party building and the organizational line of the Party in the new era, further enhanced the systematization, standardization, and institutionalization of Party building, and maintained the A-level assessment of the accountability mechanism for Party building work among central SOEs. We adhered to the principle of selecting the right person for the right position, strengthened the leadership team, and increased the appointment of outstanding young talents, achieving a historic high in personnel selection satisfaction. Initial results were shown in the efforts to build a talent pool and an innovation highland for the energy and chemical industry. We insisted on innovating Party building work, kept on improving the quality of grassroots Party building work, and promoted the key role played by the Party during the critical periods throughout the Company’s development. To promote the public image of the Company, we officially launched the second batch of education bases on the history of revolution and 10 social responsibility demonstration projects. The Company's brand value has been ranking No.1 in the energy and chemical industry for 6 year in a row, and its brand building capacity has been ranking No.1 among central SOEs for 2 consecutive years. We carried forward the “Three No Corruption” campaign, won good results in the special rectification efforts for correcting social conduct and discipline as well as fighting bureaucracy, and successfully reduced burdens for the grass-roots level.

The remarkable achievements were hard won, thanks to the dedication and concerted efforts of all the management and employees of the Company under the care and support of the Central Committee of the CPC with General Secretary Xi at its core, under the guidance of the authorities and friends from all walks of life, under the trust given by our clients and consumers and under the collaboration with partners from home and abroad. Hereby, on behalf of the Board of Directors, the management and all employees of the Company, I would like to express my heartfelt appreciation to all friends who have been supporting and helping Sinopec!

2023 marks the beginning for comprehensively implementing the guiding principles of the 20th National Congress of the CPC, a crucial year for the 14th Five Year Plan, and also the 40th anniversary of the establishment of Sinopec. We will rally closely around the Central Committee of the CPC with General Secretary Xi at its core, fully implement the guiding principles of the 20th CPC National Congress and the important instructions given by General Secretary Xi Jinping during his inspection tour to Shengli Oilfield. We will forge ahead and step up for the goal of building Sinopec into a company with powerful strength to provide strategic support, safeguard people’s livelihood and stimulate spiritual inspiration. We will write a new chapter of Sinopec through a Chinese path to modernization with confidence, make greater contributions to advancing rejuvenation of the Chinese nation on all fronts and embrace the 40th anniversary of Sinopec with excellent results.

We will continue to strengthen cooperation with our partners and look forward to building a brighter tomorrow with you together!