The Company has developed a nationwide marketing network for refined oil products, with 29,602 retail stations and 803 lube oil sales outlets. As China's largest oil products producer and supplier, the Company has always been committed to its responsibility to secure market supply.

In 2007, the market developed from abundant products supply to seriously tight supply. In such market extremes, the Company withstood violent market fluctuations and made every effort to supply the market. In Q4 in particular, the Company fully tapped its synergy and network advantage to increase output, import products, release national stockpile, and utilize non-Sinopec refining capacity. Through effective pooling of resources and optimized allocation and marketing, the Company managed to ensure a steady market, fulfilling its social responsibility as a major state-owned enterprise and winning wide recognition from the central government, relevant ministries, local authorities and the public consumers.

The Company will stick to its responsibility in securing market supply in 2008, striving for increased supply to safeguard China's energy security and sound and fast economic growth. The Company's marketing forces will thoroughly study the supply and demand fundamentals, structural, regional, sector and implicit consumption, seasonal supply and demand changes, and the impact of prices on demand. In addition, the Company will further apply various means in adjusting stockpile, production, sourcing, import and export, carefully plan transportation and allocation, maintain the sound operation of the market, and deliver its commitment as a state-owned enterprise.