In 2011, Sinopec has made positive contributions in a number of areas: building harmonious communities, disaster relief, poverty alleviation and aiding Tibet, health care, donation for education and supporting poor students, and helping to develop national sports and promoting health. In 2011, we donated a total of RMB 150 million. Sinopec was awarded the "China Philanthropy Prize" in 2011 and the "Special Prize for Brightness Service" in 2010 and 2011.

6.1 Community Building

Adhering to the philosophy of "localization, development upon surrounding advantages, and win-win cooperation", Sinopec has signed strategic cooperation agreement with a number of provinces and cities in 2011. Sinopec has actively participated and promoted local employment and company development. For example, some oilfield subsidiaries carried out activity of "Building harmonious and civilized community", made great efforts to create a safe, convenient, clean and beautiful environment and healthy cultural atmosphere for community residents, which was recognized by local government and people.

We have continuously supported domestic and international sports and cultural undertakings. In 2011, we arranged RMB 36 million for sports and cultural undertakings, including Paralympics and Peasants Sports Game in China and various IAAF sports games.

6.2 Aid Those in Need, Help Those in Difficulty

Aiding those in need and helping those in difficulty will improve the unity and harmony of the society. By 2011, Sinopec has carried out designated poverty alleviation program for 23 consecutive years, has implemented aiding program for Tibet for 9 years, and has sponsored Lifeline Express Project for 8 years. All these programs effectively improve the production and living condition of local people, and stimulate the economic growth of local society.In 2011, Sinopec also assisted the reconstruction of disaster-hit regions and drought-resistance in Guizhou Province.

◎ Assisting Porverty-Hit Counties

Sinopec has strengthened aids to the four state-designated poverty-hit counties including Yinshang and Yuexi counties in Anhui Province and Luxi and Fenghuang counties in Hunan Province, improving infrastructure construction, labor skill training and education. In 2011, Sinopec has invested RMB 12.8 million to the four designated counties, implementing 15 poverty relief projects. Those projects include building 11 cement roads connection villages, with a length of 52 kilometers, completion of 1800 labor forces training, aiding 1257 poor university and high school students, construction of bridges, drinking water projects and vegetable greenhouses.

◎ Aiding Tibet

Sinopec places great emphasis on and further strengthens the work of aiding Tibet. During the 9 years of Sinopec's aiding efforts to Bange County, we have sent 12 cadres to Bange, accumulatively invested RMB 184 million (RMB 27.86 million in 2011), implemented 80 aiding projects (9 in 2011), and significantly improve the Bange's economic growth and well-being of local people. In 2010, the GDP of Bange County reached RMB 314 million, increased by 147% compared with 2002 before the aiding efforts; the fiscal income reached RMB 6.13 million, grew by 308%, while the annual per capita income of herdsmen increased to RMB 3,515, up by 142%.

Infrastructure construction is the key to aiding-Tibet work. Jijiangzhaxi road and Xingfu road built by Sinopec are just like two jade belts going through the town of Bange County. A series of people-benefiting projects such as housing project have improved the living standard of herdsmen. By now, 5863 households have moved into safe and comfortable houses, while over 6000 households are equipped with safe and environmental-friendly solar lighting system. In addition, we helped to build places of recreation and Bange Sinopec Primary School for grade 4 to grade 6 students. So far, it is the highest aiding-Tibet primary school above sea level.

Training improves the local self-reliance capacity of poverty-hit regions. Sinopec carried out training focusing on competence development with market-orientation and special feature. With the combination of aids and self-development, we achieve better effects of the poverty alleviation work. In 2011, we invested RMB 500,000 for skill training of health care, education, veterinarian, and education of comprehensive development for government officials.

For long, Sinopec's aiding-Tibet efforts have been highly recognized by the society. Bata, Party Secretary of the Bange County, said: "in the recent 9 years, Sinopec's aids help Bange County to achieve fast and sound economic growth, improve well-being and living standard of the people, promote the development by leaps and bounds and long-term stability.

◎ Aiding Qinghai

Sinopec started to aid Qinghai Province in 2011 with a total investment of RMB 4 million for the year. We helped to bulid an 8,008 m2 market in Wenhua road, Mangya Administation of Qinghai Province. The market is expected to be put into use in 2012, with total investment of RMB 21.2 million. This is the Sinopec's first aiding-Qinghai project, which set up a solid foundation for more of its kind.

◎ "Lifeline Express" Brightness Tour

Eyes are the windows of soul. To cure the cataract patients, Sinopec constantly devoted to the "Lifeline Express" project, and achieved good accomplishment.

We can summarize Sinopec's efforts to "Lifeline Express" project since 2004 with "one train, 20,000 patients, one training center and three treatment centers". We donated a "Lifeline Express" which is worth RMB 30 million and equipped with most advanced medical equipment. This "Lifeline Express" has traveled to poverty-hit regions in Xinjiang, Gansu, Yunnan, Inner Mongolia, Qinghai, Sichuan, Tibet, Guizhou, Jilin, Guangxi, Henan, etc, and cured over 21,000 poor cataract patient for free, and will continue its journey of "brightness". In addition, we helped to build a training center of ophthalmic microsurgery and three cataract treatment centers.

◎ Aiding Disaster Area

Provide aids for reconstruction after disaster. Three years ago, after the Wenchuan Earthquake, Sinopec made its commitment to supply natural gas to each settlement place and provide gasoline and diesel to each machine for reconstruction no matter where they are. In the recent 3 years, Sinopec reinforced its exploration and production, built pipelines to send gas and oil products to where they are most needed. We donated RMB 308 million and supplied 7.823 billion cubic meters of gas to the disaster-hit area. We fulfilled our commitment with action, bring warmth to tens of thousands of Sichuan people, and contribute a lot for the reconstruction and local economic growth.

Provide aid to drought-region in Guizhou. In 2011, Sinopec Guizhou company provided 2000 liters of diesel to Qianxi County and Dafang County which were severely hit by the drought. In 2011, Sinopec donated RMB 7 million to Guizhou provincial government for the drought relief work, which is sincerely appreciated by the local government.

6.3 Funding Educational Programs

"Never let a single child drop out of school because of poverty", this is Sinopec's commitment to employees, and also a hope to all the children who dropout due to poverty. On the one hand, Sinopec actively aid to build the "Hope Primary School". On the other hand, we set up funds and carry out various donations for poor children.

◎ Funding the Construction of "Hope Schools"

Sinopec regards funding the construction of "Hope Schools" as a long-term charity commitment. Since 2005, we have donated and built 338 Hope Primary Schools.

◎ Funding "Spring Blossom" Female Students

Sinopec " Spring Blossom" project supporting female students was started in 2004 and carried out in 68 counties and 34 cities in Sichuan, Guizhou, Gansu and Hunan Provinces, and has already been very fruitful. In 2011, Sinopec once again allocated RMB 1.992 million to fund the high-school education of 3320 "Spring Blossom" emale students from poor families. In June, 2011, they took part n the college entrance examination and 2700 "Spring Blossom" students were admitted by universities across the country.

By 2011, Sinopec has donated RMB 55.098 million in total, funding 20,358 "Spring Blossom" students to finish elementary education, 9960 "Spring Blossom" students for high-school education among which 6539 were admitted by universities.

◎ Funding for Impoverished Students

Sinopec also strengthened poverty relief work at the location of its subsidiaries and provided funds for children in impoverished families.

Sinopec Zhongyuan Oilfield carried out "Fund for Education in Autumn" project since 1995, aided 10,769 student in poverty with total a funding of RMB 10 million. Zhongyuan Oilfield was awarded "Advanced Unit of Education Aid" in Henan Province for many years. Henan Oilfield has funded 3261students in 12 years with total a funding of RMB 5.03 million. 496 of them finished their university studies.

According to statistics, in 2011, Sinopec subsidiaries invested RMB 2 million to help 1257 excellent university and high school students in poverty, among which 226 were freshmen and 1031 were high-school students, and received hundreds of appreciation letters. Long Mingxian, a Tsinghua University student from environment science and engineering department aided by Sinopec, said: "Sinopec not only funded my study expense, but also made me realize that despite of self-development, self-improvement and personal pursuit, a person should also shoulder social responsibilities and contribute to the social progress."

Conclusion

Being grateful is a traditional virtue of Chinese. "The favor of a drop of water has been rewarded with the gratitude of a fountain of water", this tradition of appreciation has taught Chinese people generation by generation and also engraved into Sinopec's value of development.

In its 30 years of development, Sinopec always bears in mind the concept of rewarding society, and starts doing good deeds from minor things. We manage to stay strong in times of difficulty and choose to reward the society when capable.

In the future, Sinopec will continue to hold the torch of love, bringing warmth to everyone's heart.

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