Sinopec Engineering Group Co Ltd. — Capital/Financing Update 2018

Apr 17, 2018

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 on certain information in connection with the representative new contracts entered into by the Group for the three months ended 31 March 2018, the total value of the new contracts for the three months ended 31 March 2018 and the backlog as at 31 March 2018.

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 on the following information.

During the three months ended 31 March 2018, the total value of new contracts entered into by the Group amounted to RMB26.882 billion, representing an increase of 363.6% as compared to RMB5.799 billion for the three months ended 31 March 2017. As at 31 March 2018, the backlog of the Group amounted to RMB111.577 billion, representing an increase of 22.6% as compared to RMB91.028 billion as at 31 December 2017.

• 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 2018, the total value of new contracts entered into by the Group amounted to RMB26.882 billion, and contracts that are representative are as follows:

1. a contract of engineering, procurement and construction (EPC) entered into with Zhongke (Guangdong) Refining & Chemical Co., Ltd.* (中科(廣東)煉化有限公 司) in relation to oil refining, chemical and power station segment of Zhongke integrated refining and petrochemical project with a total contract value of approximately RMB19.532 billion;

2. an EPC contract entered into with Saudi Basic Industrial Company (SABIC) in relation to Saudi Arabia SABIC GAS Phase-9 air separation project with a total contract value of approximately RMB1.756 billion; and

3. a construction contract entered into with British company Petrofac Limited in relation to Kuwait new collection center (GC-32) project with a total contract value of approximately RMB867 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 period or as at the date indicated:

Total of NewContract ValueFor the three monthsended 31 March 2018(RMBthousand)Percentage(%)Business segmentsEngineering, Consultingand Licensing909,6493.38EPC Contracting21,895,24381.45Construction3,620,12813.47Equipment Manufacturing456,8961.70Total26,881,916100.00Industries in which the Group’s clients operateOil Refining10,311,08138.36Petrochemical9,450,51235.16New Coal Chemicals3,370,15112.54Other Industries3,750,17213.95Total26,881,916100.00RegionsPRC23,948,08089.09Overseas2,933,83610.91Total26,881,916100.00_Clients of each of (i) Sinopec Group and its associates _Group and its associatesSinopec Group and itsassociates20,480,50576.19Non-Sinopec Group andits associates6,401,41123.81Total26,881,916100.00	BacklogAs at31 March 2018(RMBthousand)Percentage(%)8,034,4607.2087,129,42178.0915,492,78613.89920,3030.82111,576,970100.0040,929,39536.6831,777,33528.4817,183,19715.4021,687,04319.44111,576,970100.0082,263,08273.7329,313,88826.27111,576,970100.00 and (ii) the non-Sinopec56,316,89750.4755,260,07349.53111,576,970100.00	BacklogAs at31 March 2018(RMBthousand)Percentage(%)8,034,4607.2087,129,42178.0915,492,78613.89920,3030.82111,576,970100.0040,929,39536.6831,777,33528.4817,183,19715.4021,687,04319.44111,576,970100.0082,263,08273.7329,313,88826.27111,576,970100.00 and (ii) the non-Sinopec56,316,89750.4755,260,07349.53111,576,970100.00
		100.00

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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, Secretary to the Board

Beijing, the PRC 17 April 2018

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

This announcement is 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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