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

Jan 18, 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)

MAJOR CONTRACT ANNOUNCEMENT

EPC CONTRACT IN RELATION TO THE OIL REFINING SEGMENT OF ZHONGKE GUANGDONG INTEGRATED REFINING AND PETROCHEMICAL PROJECT

SINOPEC Engineering (Group) Co., Ltd. (the “ Company ”, together with its subsidiaries, the “ Group ”) is pleased to announce that the Group has recently entered into a contract of engineering, procurement and construction (EPC) (the “ Contract ”) with Zhongke (Guangdong) Refining & Chemical Co., Ltd.* (中科（廣東）煉化有限 公司) in relation to the oil refining segment of Zhongke Guangdong integrated refining and petrochemical project (the “ Project ”). The Project is located at Zhanjiang, Guangdong. The Company’s scope of work under the Contract mainly includes the main production units of oil refining segment, such as a 10 million tons per annum (“ Mtpa ”) atmospheric and vacuum distillation unit, a 2.0 Mtpa light carbon recovery unit, a 4.2 Mtpa residue fluid catalytic cracking unit, a 4.4 Mtpa residue desulfurisation unit, a 2.0 Mtpa hydro-cracking unit, a 2.0 Mtpa diesel hydrogenation unit, a 1.8 Mtpa continuous catalytic reforming, and other utilities and facilities. The total value of the Contract is approximately RMB8.712 billion. The Contract took effect from the date of signing. The intermediate handover date of the Project as agreed under the Contract is October 2019. The total value of the Contract will be recorded as backlog of the Group.

China Petroleum & Chemical Corporation (which is controlled by the ultimate controlling shareholder of the Company, China Petrochemical Corporation (“ Sinopec Group ”)), holds 100% of the equity interests in Zhongke (Guangdong) Refining & Chemical Co., Ltd. * (中科（廣東）煉化有限公司). The Contract is entered into based on the principles and the terms under the engineering and construction services framework agreement entered into between the Group and Sinopec Group on 19 December 2012 and the supplemental agreement thereto on 28 August 2015

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(collectively, the “ Engineering and Construction Services Framework Agreement ”), and is in line with the interests of the Company and its shareholders as a whole. For the details of the Engineering and Construction Services Framework Agreement, please refer to the Company’s prospectus dated 10 May 2013, the Company’s announcement entitled “Renewal of Technology R&D Framework Agreement, Financial Services Framework Agreement and Engineering and Construction Services Framework Agreement and the Annual Caps” published on 31 August 2015, the Company’s circular to its shareholders published on 15 September 2015, and the Company’s announcement entitled “Renewal of Technology R&D Framework Agreement, Financial Services Framework Agreement and Engineering and Construction Services Framework Agreement and the Annual Caps and the Continuing Connected Transactions and Major Transactions under the Financial Services Framework Agreement” published on 15 September 2015.

The Company has obtained approval from the independent shareholders of the Company in connection with the Engineering and Construction Services Framework Agreement, details of which are disclosed in the Company’s announcement entitled “Announcement of Resolutions Passed at the Third Extraordinary General Meeting for the Year 2015” published on 30 October 2015. The Company will implement the Contract in accordance with the applicable Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The board of directors of the Company wishes to emphasise that the Contract and the total value of the Contract mentioned above do not constitute any forecast or prediction of the profits of the Group. 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 Vice President, Secretary to the Board

Beijing, PRC 18 January 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).

• For identification purposes only.

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