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

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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)

VOLUNTARY ANNOUNCEMENT TOTAL NEW CONTRACT VALUE AND BACKLOG

This announcement is made voluntarily by SINOPEC Engineering (Group) Co., Ltd. (the “ Company ”, together with its subsidiaries, the “ Group ”). The board of directors of the Company (the “ Board ”) is pleased to update shareholders of the Company and potential investors with certain information in connection with the representative new contracts entered into by the Group for the three months ended 31 March 2014, the total value of the new contracts for the three months ended 31 March 2014 and the backlog as of 31 March 2014.

This announcement is made by the order of the Board. The Board collectively and individually accepts responsibility for the accuracy of this announcement.

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

This announcement is made voluntarily by the Company. The Board is pleased to update shareholders of the Company and potential investors the following information.

During the three months ended 31 March 2014, the total value of new contracts entered into by the Group amounted to RMB15.873 billion, representing an increase of 11.6% as compared to RMB14.222 billion for the three months ended 31 March 2013. As of 31 March 2014, the backlog of the Group amounted to RMB110.543 billion, representing an increase of 6.3% as compared to RMB103.968 billion as of 31 December 2013.

For identification purpose only.

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New Contract Value and Backlog

Representative New Contracts

New contract value represents the value of the contracts the Group entered into during a specified period. The value of a contract is the amount that the Group expects to receive under the terms of the contract if the contract is performed in accordance with its terms. During the three months ended 31 March 2014, the total value of new contracts entered into by the Group amounted to RMB15.873 billion, and contracts that are representative are as follows:

an EPC contract for the receiving terminal station under the Shandong liquefied natural gas (LNG) project of Sinopec Qingdao LNG Co., Ltd. (中國石化青島液化天然氣有限責任公司), with a contract value of RMB2.640 billion.
an EPC contract for the 180/400 thousand tons per annum ethylene oxide/ethylene glycol (EO/EG) project of Fujian Refining & Petrochemical Co., Ltd. (福建聯合石油化工有限公司), with a contract value of RMB1.368 billion;
an EP contract for the detailed engineering design and procurement of the air separation and oil processing units for the 4 million tons per annum demonstrative indirect coal liquefaction project of Shenhua Ningxia Coal Industry Group (神華寧煤集團), with a contract value of RMB3.356 billion; and
a construction contract for the hydrocracking and diesel hydrotreating project of Saudi Aramco Oil Company (沙特阿美石油公司), with a contract value of USD194 million.

Backlog

Backlog represents the total estimated contract value of work that remains to be completed pursuant to outstanding contracts as of a certain date, net of estimated value added tax and is based on the Group’s assumption that the relevant contracts will be performed in accordance with their terms. Backlog is not a measure defined by generally accepted accounting principles. Any modification, termination or suspension of these contracts by the Group’s clients may have a substantial and immediate effect on the Group’s backlog. Projects may also remain in the Group’s backlog for an extended period of time beyond what was initially anticipated due to various factors beyond the Group’s control.

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The table below sets out the details of the total value of new contracts entered into by the Group and its backlog categorised by (1) business segments; (2) the industries in which the Group’s clients operate; (3) regions; and (4) clients of each of (i) China Petrochemical Corporation (the “ Sinopec Group ”) and its associates and (ii) the non-Sinopec Group and its associates during the periods or as of the date indicated:

Total of Backlog New Contract Value As of 31 March 2014 Three months ended 31 March 2014

(RMB thousand) Percentage (%) (RMB thousand) Percentage (%)

Business segments

Engineering, Consulting and Licensing 1,151,584 EPC Contracting 10,596,273 Construction 4,064,699 Equipment Manufacturing 60,753 Total 15,873,309 *Industries in which the Group’s clients operate* Oil Refining 3,439,398 Petrochemical 3,501,614 New Coal Chemicals 3,926,486 Other Industries 5,005,811 Total 15,873,309 *Regions* PRC 13,096,953 Overseas 2,776,356 Total 15,873,309	7.3 66.7 25.6 0.4 100.0 21.7 22.1 24.7 31.5 100.0 82.5 17.5 100.0	6,410,251 90,998,345 12,873,803 260,503 110,542,902 19,919,479 38,486,519 41,306,251 10,830,653 11,0542,902 75,923,133 34,619,769 110,542,902	5.8 82.3 11.7 0.2
			100.0
			18.0 34.8 37.4 9.8
			100.0
			68.7 31.3
			100.0

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Total of Backlog New Contract Value As of 31 March 2014 Three months ended 31 March 2014

(RMB thousand) Percentage (%) (RMB thousand) Percentage (%)

Clients of each of (i) Sinopec Group and its associates and (ii) the non-Sinopec Group and its associates

Sinopec Group and its associates Non-Sinopec Group and its associates Total	6,287,584 9,585,725 15,873,309	39.6 60.4 100.0	39,214,437 71,328,465 110,542,902	35.5 64.5
				100.0

The Board wishes to emphasize that the above information in relation to the representative new contracts, the total value of new contracts and backlog shall not constitute any forecast or prediction of the profits of the Group.

This announcement is made by the order of the Board. The Board collectively and individually accepts responsibility for the accuracy of this announcement.

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

Yours faithfully, By order of the Board