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 Address from Chairman
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Dear Friends,

First of all, on behalf of the Board of Directors ofSinopec Corp., I would like to express my heartfelt thanks to shareholders and people from all sectors of society for their attention and support.

The past year witnessed Sinopec’s further efforts to promote sustainable development. The United Nations adopted the 2030 Agenda for Sustainable Development, which defines 17 post-2015 objectives. A new, generally binding climate agreement was reached at the Paris Conference on Climate Change, and China has committed to the international community its intended nationally determined contributions. China has also adopted stricter environmental protection laws, and will accelerate its commitment to create an ecological civilisation as part of its 13th Five-Year Plan. At the same time, the economic and social demand for clean energy such as natural gas and high-end petrochemical products grew quickly, increasing the urgency for Sinopec to achieve sustainable development.

In 2015, we continued to perform our responsibilities as a corporate citizen by serving the people and society whole-heartedly according to the Ten Principles of the UNGC, the criteria of the Global Compact Advanced Communication on Progress, and China’s low-carbon development requirements. We increased our emphasis on deepening reforms, integrating resources and controls, driving innovation and creating value. And as we continued to practice innovative and coordinated development, we joined with stakeholders in seeking opportunities for green, open and shared development. As a result, we made new progress in achieving sustainable development.

We practiced innovative development to help make an excellent future. The Company’s sustainable development governance structure continued to improve, and we made further progress in anti-corruption, efficiency supervision and business transparency. We responded to the state’s call for Mass Entrepreneurship and Innovation, and we continued to build our technological innovation systems and mechanisms. Sinopec’s efficient and environmentally friendly aromatics package technology was awarded National Special Prize for Progress in Science and Technology, and we cultivated new technological talent and skill masters. We implemented the Made in China 2025 initiative and vigorously promoted integration of industrialisation and information technology. As a result, our subsidiaries made remarkable achievement in building smart plants.

We practiced coordinated development to help make a sustainable future. In an environment of weak oil prices, we coordinated the development of our integrated businesses, achieving rapid growth in the refining and petrochemical business, steady development of the marketing segment, and advances in both the emerging and traditional oil and gas business, demonstrating our strong ability to resist risk and sustain profitability.

We practiced green development to help make a beautiful future. As a lead participant of the UNGC, we continued to support the UNGC Network China in organising the Third China Summit on Caring for Climate, encouraging Chinese enterprises to carry out green and low-carbon development. We enjoyed growth in both the reserve and production of shale gas; our bio-jet fuel was successfully deployed in its first commercial passenger flight; we further upgraded the quality of our refined oil products; and our management of carbon assets improved continuously. The Company invested RMB 18.87 billion in advancing the Clear Water and Blue Sky Campaign and the Energy Conservation Plan. In 2015, the Company’s energy intensity dropped by 1.57% year on year, industrial water consumption dropped by 1.0%, COD in waste water discharge dropped by 4.14%, and sulfur dioxide emissions dropped by 4.84%.We also achieved 100% proper disposal of hazardous chemicals, waste gas, waste water and industrial residue.

We practiced shared development to help make a harmonious future. Within the Company, we implemented measures to increase production safety, to respect and protect employees’ rights and interests, to create career development paths for our employees, to ensure occupational safety, to develop our corporate culture, and to create a happy work environment. In the industrial chain, we fulfilled our responsibilities as a partner, strengthened the management of our contractors and implemented responsible procurement practices while building a healthy supply-chain culture. In addition, we continued to support community development, actively contributed to society, and participated in public welfare activities including poverty alleviation, disaster relief, aid to Xinjiang and Tibet and the Lifeline Express programme etc. We practiced open development to help make a future where all parties win. We actively supported the One Belt, One Road initiative. China’s largest investment project in Saudi Arabia and Sinopec’s first overseas refining and chemical project, Yanbu Aramco Sinopec Refining Company Ltd., commenced commercial operations. We also invested in Sibur, Russia’s largest natural gas processing and petrochemical company, to expand our overseas business platform. Furthermore, we were actively engaged in public welfare abroad, supported employee localisation, and carried out energy conservation, emission reduction and community construction programmes.

In 2015, the Company had total revenues and other operating income of RMB 2,018.9 billion, paid RMB327.4 billion in taxes and fees and declared to distribute RMB 18.2 billion dividends to shareholders. Meanwhile, the Company supplied 189 million tonnes of refined oil products and 62.87 million tonnes of chemical products to consumers.

At present, guided by the concepts of innovative, coordinated, green, open and shared development, our Board of Directors and management are executing our five key development strategies: value-oriented development; innovation-driven development; resources planning; open and cooperative development; and green and low-carbon development, with the aim of facilitating higher-quality development that is both more beneficial and more sustainable. Looking ahead, as one of China’s largest listed companies, a lead member of the UNGC and a signatory of the Caring for Climate initiative, with a long-term perspective and a practical approach, Sinopec will vigorously work to build an ecological civilisation and promote the principles of green and low-carbon development. In so doing, we will develop and utilise resources to provide energy and high-quality products and services for society and our people, leading the way with responsibility and creating a bright future for the next generations.

The development of Sinopec is not possible without your care and support. We look forward to joining hands with you to build a beautiful home and a beautiful life.

Wang Yupu
March 2016