Sinopec Engineering Group Co Ltd. — Capital/Financing Update 2015

Apr 15, 2015

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)

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 2015, the total value of the new contracts for the three months ended 31 March 2015 and the backlog as at 31 March 2015.

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 2015, the total value of new contracts entered into by the Group amounted to RMB8.184 billion, representing a decrease of 48.4% as compared to RMB15.873 billion for the three months ended 31 March 2014. As at 31 March 2015, the backlog of the Group amounted to RMB104.471 billion, representing an increase of 0.5% as compared to RMB103.922 billion as at 31 December 2014.

* For identification purposes 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 2015, the total value of new contracts entered into by the Group amounted to RMB8.184 billion, and contracts that are representative are as follows:

1. a procurement and construction contract for the utilities and infrastructure of the Saudi phosphate fertiliser project with Saudi Arabian Mining Co. (沙特Maaden 公司), with a contract value of US$448 million (approximately RMB2.773 billion);

2. an engineering, procurement and construction (EPC) contract for polyethylene devices for the Qinghai Damei project of olefin production through comprehensive utilisation of tail gas with Qinghai Damei Coal Industry Co., Ltd. (青海大美煤業股份有限公司), with a contract value of approximately RMB531 million;

3. an EPC contract for the Anqing butanol and octanol production project with a capacity of 250 kilo tons per annum with SINOPEC Anqing Company (中國石 油化工股份有限公司安慶分公司), with a contract value of approximately RMB471 million; and

4. an engineering design contract for the second and third production lines of Phase I of the Shenhua direct coal liquefaction project with Ordos branch of China Shenhua Coal To Liquid and Chemical Co., Ltd. (中國神華煤制油化工有限公司 鄂爾多斯煤制油分公司), with a contract value of approximately RMB370 million.

Backlog

Backlog represents the total estimated contract value of work that remains to be completed pursuant to outstanding contracts as at 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 (“ Sinopec Group ”) and its associates and (ii) the non-Sinopec Group and its associates during the periods or as at the date indicated:

	Total of
	New Contract Value		Backlog
For the three months ended 31
	March 2015		As at 31 March 2015
(RMB thousand) Percentage (%)			(RMB thousand) Percentage (%)
Business segments
Engineering, Consulting
and Licensing	758,153	9.3	6,678,352	6.4
EPC Contracting	4,716,966	57.6	82,840,939	79.3
Construction	2,697,777	33.0	14,816,207	14.2
Equipment Manufacturing	11,577	0.1	135,409	0.1
Total	8,184,473	100.0	104,470,907	100.0
Industries in which the Group’s clients operate
Oil Refining	653,229	8.0	26,348,605	25.2
Petrochemical	2,368,187	28.9	23,354,015	22.4
New Coal Chemicals	1,527,602	18.7	45,794,114	43.8
Other Industries	3,635,455	44.4	8,974,173	8.6
Total	8,184,473	100.0	104,470,907	100.0
Regions
PRC	4,922,343	60.1	75,331,351	72.1
Overseas	3,262,130	39.9	29,139,556	27.9
Total	8,184,473	100.0	104,470,907	100.0

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Total of

New Contract Value Backlog For the three months ended 31 March 2015 As at 31 March 2015 (RMB thousand) Percentage (%) (RMB thousand) Percentage (%)

Clients of each of (ii) 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	2,714,302 5,470,171 8,184,473	33.2 66.8 100.0	41,480,719 62,990,188 104,470,907	39.7 60.3
				100.0

The Board wishes to emphasise 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 SINOPEC ENGINEERING (GROUP) CO., LTD. SANG Jinghua

Vice President and Secretary to the Board

Beijing, PRC 15 April 2015

As at the date of this announcement, the Company’s executive directors are LU Dong, YAN Shaochun, SUN Lili (employee representative director) and WU Derong (employee representative director); the non-executive directors are ZHANG Jianhua and LI Guoqing; and the independent non-executive directors are HUI Chiu Chung, Stephen, JIN Yong and YE Zheng.

This announcement will be available on the website of Hong Kong Exchanges and Clearing Limited (www.hkex.com.hk) and on the website of the Company (www.segroup.cn).

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