Sinopec Engineering Group Co Ltd. — Capital/Financing Update 2024

Oct 18, 2024

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 30 September 2024, the total value of new contracts for the nine months ended 30 September 2024 and the backlog as at 30 September 2024.

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 with the following information.

During the nine months ended 30 September 2024, the total value of new contracts entered into by the Group amounted to RMB73.457 billion, representing an increase of 65.6% as compared to RMB44.359 billion for the nine months ended 30 September 2023. As at 30 September 2024, the backlog of the Group amounted to RMB165.773 billion.

* 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 30 September 2024, the total value of new contracts entered into by the Group amounted to RMB23.391 billion, and contracts that are representative are as follows:

1. an EPC contract entered into with Rongxin Chemical Co., Ltd.* (內蒙古榮信化工有限 公司) in relation to the MTO unit of the 800,000-ton Olefin Project with a total contract value of approximately RMB2.427 billion;

2. an EPC contract entered into with Sinopec Nanjing Chemical Industries Co., Ltd.* (中 國石化集團南京化學工業有限公司) in relation to the Fujian Gulei Aniline-Rubber Auxiliary Industry Chain Project with a total contract value of RMB1.926 billion;

3. an EPC contract entered into with Silleno LLP in relation to the Ethane Cracking Project of Silleno Petrochemical Complex Project in Kazakhstan with a total contract value of USD1.25 billion; and

4. an EPC contract entered into with SABIC in relation to the Saudi Arabia SABIC AMIRAL Tank Area Project with a total contract value of approximately USD177 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 based on the Group’s assumption that the relevant contracts will be fully 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. Terms of the uncompleted projects may also be extended due to various factors beyond the Group’s control, making the projects remain in the Group’s backlog for an extended period of time beyond what was initially anticipated.

• for identification purposes only

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The table below sets out the details of the total value of new contracts entered into by the Group and projects in 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 indicated periods or as at the indicated date:

Total of New	Total of New	Contract	Contract
Value					Backlog
For the nine months
ended 30 September 2024					As at 30 September			2024
(RMB		Percentage			(RMB		Percentage
thousand)			(%)		thousand)			(%)
Business segments
Engineering, Consulting and
Licensing 4,227,248			5.8		13,616,924			8.2
EPC Contracting 54,271,122			73.9		124,683,277			75.2
Construction 14,211,381			19.3		25,164,656			15.2
Equipment Manufacturing 747,199			1.0		2,307,725			1.4
Total 73,456,950			100.0		165,772,581			100.0
Industries in which the Group’s clients operate
Oil Refining 7,506,644			10.2		26,831,732			16.2
Petrochemical 42,714,197			58.2		86,528,059			52.2
New Coal Chemicals 7,305,428			9.9		8,580,815			5.2
Storage & Transportation and Others 15,930,680			21.7		43,831,975			26.4
Total 73,456,950			100.0		165,772,581			100.0
Regions
PRC 46,860,980			63.8		109,462,701			66.0
Overseas 26,595,970			36.2		56,309,880			34.0
Total 73,456,950			100.0		165,772,581			100.0
Clients of each of (i) Sinopec Group and its associates			and (ii) the non-Sinopec Group and
its associates
Sinopec Group and its associates 30,605,277			41.7		66,060,277			39.8
Non-Sinopec Group and its
associates 42,851,672			58.3		99,712,304			60.2
Total 73,456,950			100.0		165,772,581			100.0

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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.

By order of the Board SINOPEC ENGINEERING (GROUP) CO., LTD. YIN Fengbing Chief Financial Officer & Secretary to the Board

Beijing, the PRC 18 October 2024

As at the date of this announcement, directors of the Company are: JIANG Dejun[#] , ZHANG Xinming[#] , XIANG Wenwu, LI Chengfeng, YU Renming*, HUI Chiu Chung, Stephen[+] , DUAN Xue[+] , YE Zheng[+] , ZHAO Jinsong[+] , and XIE Yanli[#] .

• # Executive Directors

• Non-executive Directors

• + Independent non-executive Directors

This announcement is available on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and on the website of the Company (www.segroup.cn).

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