Sinopec Engineering Group Co Ltd. — Capital/Financing Update 2014

Nov 24, 2014

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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中石化煉化工程（集團）股份有限公司

SINOPEC Engineering (Group) Co., Ltd.*

(a joint stock limited liability company incorporated in the People’s Republic of China) (Stock Code: 2386)

MAJOR CONTRACT ANNOUNCEMENT

EPC CONTRACTS WITH ZHONG’AN COAL CHEMICAL

The board of directors (the “ Board ”) of SINOPEC Engineering (Group) Co., Ltd. (the “ Company ”, and together with its subsidiaries, the “ Group ”) is pleased to announce that several EPC contracts (the “ Contracts ”) regarding 1.7 million tons per annum (“ Mtpa ”) coal to methanol and olefin project (the “ Project ”) have been entered into between the Company and ZhongAn LianHe Coal Chemical Co., Ltd. (中安聯合煤業化工有限公司, “ ZhongAn Coal Chemical ”) since October 2014. The Project is located in Huainan City, Anhui Province. The Company’s scope of work under the Contracts includes the general contracting of engineering, procurement and construction (“ EPC ”) for main units, such as a 1.7 Mtpa methanol to olefin unit (“ SMTO ”), a 100 kilo tons per annum (“ Ktpa ”) olefin catalytic cracking unit, a 350 Ktpa polypropylene units, a 350 Ktpa linear low density polyethylene unit, and other utilities and facilities. The total value of the above Contracts is approximately RMB4.779 billion. The Contracts took effect from the date of signing. The agreed commissioning date under the Contracts is 31 December 2015. The total value of the Contracts will be recorded as backlog of the Company.

The Board wishes to emphasise that the Contracts and the value of the Contracts mentioned above shall not constitute any prediction or forecast of the profits of the Company or its subsidiaries.

The Company also entered into an EPC contract regarding the coal gasification unit of the Project with ZhongAn Coal Chemical in the third quarter of this year, with a contract value of RMB2.319 billion. For details, please refer to the Company’s announcement entitled “Voluntary Announcement - Total New Contract Value and Backlog” dated 15 October 2014. In addition, the Company is currently bidding for other units under the Project.

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* For identification purposes only

The Project will adopt single-nozzle cold-wall pulverised-coal pressurized gasification package technology (“ SE ”) as co-developed by the Company and a third party. Seven SE oriental gasifiers will be erected in the coal gasification unit. The coal consumption ratio, oxygen consumption ratio, effective syngas content, carbon conversion rate, ash and slag ratio and other criteria of such technology are world leading as compared to those of the coal gasification technologies of the same kind, with high energy conversion effectiveness. The Project will also adopt the SMTO technology and polyolefin production technologies as codeveloped by the Company and its connected person, China Petroleum & Chemical Corporation, (“ Sinopec Corp. ”). The Project is one of the milestones of the Company to further build a new coal chemical integrated industrial chain and to provide owners with onestop EPC services.

Sinopec Corp., which is controlled by the ultimate controlling shareholder of the Company, China Petrochemical Corporation (“ Sinopec Group ”), holds 50% of the shares of ZhongAn Coal Chemical. The Contracts are in compliance with the principles and terms under the engineering and construction services framework agreement entered into between the Group and Sinopec Group on 19 December 2012 (the “ Engineering and Construction Services Framework Agreement ”), details of which are disclosed in the Company’s prospectus dated 10 May 2013, and are in the interests of the Company and its shareholders as a whole. The Company has obtained waiver (including the waiver from announcement and independent shareholders’ approval requirements) in respect of the Engineering and Construction Services Framework Agreement granted by The Stock Exchange of Hong Kong Limited according to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board SINOPEC ENGINEERING (GROUP) CO., LTD. SANG Jinghua Secretary to the Board and Company Secretary

Beijing, the PRC

24 November 2014

As at the date of this announcement, the Company’s executive director is Mr. YAN Shaochun; the non-executive directors are Mr. CAI Xiyou, Mr. LEI Dianwu, Mr. LING Yiqun, Mr. CHANG Zhenyong and Mr. LI Guoqing; and the independent non-executive directors are Mr. HUI Chiu Chung, Stephen, Mr. JIN Yong and Mr. YE Zheng.

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