1

March 31, 2004Hong Kong

China Petroleum & Chemical Corporation Results for the Year Ended December 31, 2003

2

Forward Looking Statement

This presentation and the presentation materials distributed herewith include forward-

looking statements. All statements, other than statements of historical facts, that address

activities, events or developments that Sinopec Corp. expects or anticipates will or may occur

in the future (including but not limited to projections, targets, estimates and business plans)

are forward-looking statements. Sinopec Corp.'s actual results or developments may differ

materially from those indicated by these forward-looking statements as a result of various

factors and uncertainties, including but not limited to price fluctuations, actual demand,

exchange rate fluctuations, exploration and development outcomes, estimates of proved

reserves, market shares, competition, environmental risks, changes in legal, financial and

regulatory frameworks, international economic and financial market conditions, political risks,

project delay, project approval, cost estimates and other risks and factors beyond our control.

In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today

and undertakes no obligation to update these statements.

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Agenda

• 2003 Performance Highlights and Achievements

from Continued Reform and Development

• 2003 Operating Results

• 2004 Outlook

4

2003 Performance Highlights and Achievements from Continued

Reform and Development

5

28.68

37.27

4.781.01

4.57

3.23 0.892.22

0.881.01

Significant Profit Growth through Continued Reform and Restructuring

EBIT Analysis

2002

RefiningProfit Growth

ChemicalsProfit Growth

Impairment Losses of

Fixed Assets

E&PProfit Growth

MarketingProfit Growth

Asset Disposal

SeveranceCost

2003

Headquarters& Others

Profit Growth in business segments = EBIT of 2003 before deducting asset disposal, impairment losses of fixed assets and severance cost – EBIT of 2002

Unit: RMB billion

6

Solid Financial Performance

(RMB in billion)

Revenue

EBITDA

EBIT

Net Profit

Short-term Debt

Long-term Debt

Shareholders’ Equity

Cash & Cash Equivalent -

Ending Balance

Cash from Operating Activities

EPS (RMB)

DPS (RMB)

41.6

2002

0.19

329.1

54.0

28.7

16.3

35.6

163.8

18.2

55.0

0.08

2003

0.25

424.3

64.0

37.3

21.6

29.1

43.6

167.9

15.2

60.6

0.09

32.5

28.9

18.5

30.0

32.5

-18.3

4.8

2.5

-16.5

10.1

12.5

2002/2003yoy (%)

-5

0

5

10

15

20

25

30

35

40

45

2001 2002 2003

E&P Refining Marketing

Chemicals Others

Segmental EBIT Performance

RMB bn

7

Higher Investment Return andImproved Capital Structure

Note: Data of 2002 and onwards include Maoming Ethylene, Xi’an Petrochemical and Tahe Petrochemical

6.96 7.08

9.04

0

1

2

3

4

5

6

7

8

9

10

2001 2002 2003

ROCE %

ROCE

24.0825.68

28.06

17.20

12.90

10.60

15

20

25

30

35

2001 2002 2003

0

2

4

6

8

10

12

14

16

18

20

Debt / Total Capital

EBITDA Interest Coverage

Debt / Total Capital %

EBITDA Interest Coverage

Debt / Total Capital and EBITDA Interest Coverage

8

Improved Corporate Governance

• Elected the second session of Board of Directors and Supervisory Committee

• Revised Articles of Association and other documents to meet regulatory requirements of the four listing venues and reflect our commitment to strong corporate responsibility and credibility

• Streamlined decision making process and fully leveraged the roles of the independent directors and the three committees (Strategic, Audit and Compensation) under the Board of Directors

• Further enhanced internal control procedures

• Improved transparency through timely, accurate and complete disclosure

– Awarded Best Corporate Governance and Best IR Awards, by Euromoney and FinanceAsia, etc.

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Continued in-depth Corporate Reform and Restructuring

• Further reform in compensation system

– Introduced market-rate-based practice

– Improved efficiency through further headcount reduction of 21,000 in 2003

• Specialized marketing system reform

– Established acrylic fiber sales company

10

Optimized Asset Structure

• Continued restructuring to strengthen core business

– Acquisition of Maoming Ethylene

– Acquisition of Xi’an Petrochemical and Tahe Petrochemical to streamline integrated value chain

• Disposal of underperforming assets

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Stable Dividend Payout

21.59

16.3216.03

19.58

9.0

8.08.08.0

10

20

30

2000 2001 2002 2003

0

5

10

Net Profit Dividend

RMB in bn RMB cents / Share

Note: Data of 2002 and onwards include Maoming Ethylene, Xi’an Petrochemical and Tahe Petrochemical

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2003 Operating Results

13

2003 Market Environment

• Robust economic growth in China with GDP growth rate of 9.1%

– Domestic consumption of refined products increased by 7.22%

– Domestic consumption of chemicals increased by 9.65%

• International crude oil price fluctuated at a relatively high level

• Domestic demands for refined products and chemicals soared after a depression early in the year due to SARS

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E&P — Continued Growth in Oil & Gas Production

2001 2002 20032003/2002

Change (%)

Crude Oil Production (mm bbls) 269.2 269.8 270.96 0.43

Natural Gas Production (bcf) 162.8 178.8 187.7 4.98

Newly Added Proved Reserves of Crude

Oil (mm bbls)

316.0 375.0 208.0 -44.53

Newly Added Proved Reserves of Natura

l Gas (bcf)

309.0 20.2 -254.3 -1,358.9

Year End Proved Oil & Gas Reserves (m

m boe)

3,796.0 3,875.0 3,738.0 -3.5

Lifting Cost (USD/bbl) 6.15 6.12 6.47 5.7

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E&P – Segment Performance

19,160

14,787

23,185

0

5,000

10,000

15,000

20,000

25,000

2001 2002 2003

USD/bbl

International Crude Oil Price EBIT of E&P Segment

27.6

23.822.4

2.031.95 1.96

10

14

18

22

26

30

2001 2002 2003

1.2

1.4

1.6

1.8

2.0

2.2

Crude oil Natural gas

USD/bbl USD/mcf

Crude Oil and Natural Gas Realized Price

RMB mm

152025303540

1/4/

2002

3/1/

2002

5/1/

2002

7/1/

2002

9/2/

2002

11/2

/200

2

1/2/

2003

3/2/

2003

5/2/

2003

7/2/

2003

9/1/

2003

11/1

/200

3

1/1/

2004

WTI-NYMEX Brent-IPE Cinta

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Refining – Strong Demand Growth and  Improved Product Mix

Refining Yield (%)

Light Stream Yield (%)

Kerosene Production (mm tonnes)

Chemical Feedstock Production (mm tonnes)

Diesel Production (mm tonnes)

Gasoline Production (mm tonnes)

Sour Crude Oil Processed (mm tonnes)

Refining Utilization Rate (%)

Crude Oil Processed (mm tonnes)

79.3

92.50

73.22

5.06

15.04

37.74

19.62

20.00

105.01

2002

92.23

72.33

4.47

12.36

37.93

18.74

19.25

77.9

101.42

2001 2003

92.60

73.80

5.31

16.46

41.67

21.74

23.77

87.8

116.26

2003/2002 C

hange (%)

850bps

10bps

58bps

4.9

9.44

10.4

10.8

18.85

10.71

Note: Above figures exclude Xi’an Petrochemical and Tahe Petrochemical

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Refining — Segment Performance

3.57

3.964.09

2.002.022.07

1

2

3

4

5

2001 2002 2003

1.5

2.0

2.5

Refining Margin Cash Operating Costs

2,106

5,996 6,006

0

2,000

4,000

6,000

8,000

2001 2002 2003

Note: Data of 2002 and onwards include Xi’an Petrochemical and Tahe Petrochemical

Refining Margin / Cash Operating Cost Refining Segment EBIT

USD/bbl RMB MM

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Marketing — Optimized Marketing Network, Expanded Retail and Distribution

Annual Average Throughput Per Station (tonne/station)

Franchised Gas Stations

Owned or Operated Gas Stations

Total Number of Gas Stations (Unit)

Distribution (mm tonnes)

Retail (mm tonnes)

Domestic Sales of Refined

Products (mm tonnes)

1,473

4,184

24,062

28,246

11.64

30.43

67.74

2001

1,560

4,127

24,000

28,127

12.63

34.73

70.09

2002 2003

1,686

5,736

24,506

30,242

15.33

38.85

75.92

2003/2002 C

hanges (%)

8.1

39.0

2.1

7.5

21.4

11.9

8.3

19

2,000

3,000

4,000

Jan. Mar. May. Jul. Sep. Nov.

2002 2003 2004

2,000

3,000

4,000

Jan. Mar. May. Jul. Sep. Nov.

2002 2003 2004

Marketing – Segment Performance

2,443

8,401

11,943

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2001 2002 2003

RMB/Tonne 2001 2002 2003

Marketing Cash Operating Cost

163 166 175

Marketing Segment EBIT

RMB MM

RON 90# Gasoline Guidance Price

RMB/Tonne

0# Diesel Guidance Price RMB/Tonne

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Urea

Incl. Differential Fiber

Incl. Performance Compound

Synthetic Fibers

Monomers & Polymers for Synthetic Fibers

Synthetic Rubbers

Synthetic Resins

Ethylene

Unit: 1,000 tonnes

402

1,847

1,153

3,834

458

4,005

2,716

2002

2,666

2003

1,280

4,418

502

4,691

3,169

2,305

477

2,028

2003/2002 Ch

anges (%)

11.01

15.23

9.6

17.1

16.7

24.8

18.66

-23.93

Chemicals — Full Capacity to Meet Market Demand

Note: The above figures exclude Maoming Ethylene

326

1,332

1,028

3,598

398

3,204

2,153

2001

2,342

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Chemicals – Segment Performance

USD/tonne

Note: Data of 2002 and onwards include acquisition of Maoming Ethylene

Chemicals Segment EBIT(RMB MM)

Chemicals Price Spread (1990 ~ Feb.2004)

USD/tonne

142.63149.24

160.06

100

120

140

160

180

2001 2002 2003

Cash operating costs (incl: Maoming Ethylene)

Ethylene Cash Operating Costs

300

450

600

750

900

1,050

1,200

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

LDPE-Naphtha PP-Naphtha

2,159

-758

596

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

2001 2002 2003

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Cost Reduction

Cost Reduction in 2003 was RMB 2.722 bn

(RMB mm)

2,281

2,722

2,5002,525

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2001A 2002A 2003 Plan 2003A

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Optimized Investment Focus and Asset Structure

• E&P – RMB20.63 bn to increase production and rationalize reserve profile

• Refining – RMB9.73 bn to complete a number of upgrading and expansion projects and increase clean fuel capacity. Ningbo-Shanghai-Nanjing crude oil pipeline will commence operation soon

• Marketing – RMB6.82 bn to acquire, construct and revamp gas stations and storage and transport facilities; construction of southwest refined oil pipeline in progress

• Chemicals – RMB7.35 bn to upgrade existing ethylene and urea feedstock coal gasification projects

• Corporate and others – RMB520 mm for information system, etc

2003 Capex: RMB45.05 bn

0

10

20

30

40

50

60

70

2001A 2002A 2003A

E&P Refining MarketingChemicals Others

(RMB bn)

Additional RMB4.2 bn invested in Secco and other JV projects

Capex in the Past 3 Years

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Achievements in R&D and Information System

• Successfully developed upstream exploration and development technologies such as exploration of hidden oil and gas reserves

• Developed a number of key refining and chemical technologies, including the 2nd generation loop type polypropylene packaged technologies

• Gasoline products fully complied with new specifications through application of self developed technologies

• Major breakthrough in ERP deployment

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Smooth Progress in JV Projects

• East China Sea natural gas project with CNOOC, Shell and Unocal officially launched

• Ethylene projects with BASF in Nanjing and with BP in Shanghai are under construction, expected completion in 1H 2005

• Coal gasification project with Shell in Hunan is under construction, expected completion in 2005

• Feasibility study of Fujian integrated petrochemical project with Exxonmobil and Aramco was approved

• Feasibility study of refined products retail JV with Shell in Jiangsu was approved

• Feasibility study of retail cooperation project was submitted for approval

• Biyang (Ningbo) LPG Co., Ltd. (a JV between ZRCC and BP) established

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2004 Outlook

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2004 Market Analysis

• Opportunities

– Chinese economy is expected to maintain sustainable growth with GDP growth rate of around 7%; consumption of refined products and chemicals is expected to grow by more than 5% and 8.6%, respectively

– Crude oil price is expected to maintain at relatively high level

– Refining margin continues to stay healthy

– Chemical business is entering an up-cycle

• Challenges

– Increasing competition as interim protective policies are being phased out after China’s accession to the WTO

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2004 Production Plan

2003 2004E

2004E/2003

Changes (%)

Crude Oil Production (mmbls) 270.96 274.06 1.14

Natural Gas Production (bcf) 187.70 204.83 9.13

Refined Oil Processed (mm tonnes) 116.26 120.30 3.47

Domestic Sales of Refined oil (mm tonnes) 75.92 80.00 5.37

Retail (mm tonnes) 38.85 42.00 8.11

Ethylene Production (1,000 tonnes) 3,169 3,560 12.34

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2004 Capex Plan

20.0

11.8

8.0

9.5

1.0

E&P Refining Marketing

Chemical Others

Meanwhile, accelerate the construction of JV projects such as BASF-Yangzi and Secco

• Adjust oil and gas reserve profile, increase reserves and production, and improve reserve profile among different categories

• Accelerate upgrading and expansion of refineries in the coastal regions, improve product mix and leverage synergies between refining and chemicals

• Construct and acquire gas stations in strategic locations in city centers and along new expressways

• Focus on core business and accelerate structural adjustment and technical upgrade

• Establish a modern logistics system

2004 Capex Plan: RMB50.2 bn

Unit: RMB bn

30

2004 Cost Reduction Plan

Total: RMB 2.5 bn

600

600

600

700

E&P Refining Marketing Chemical

RMB mm

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Conclusion

• Healthy and stable economic growth in China provides a favorable environment for Sinopec’s development

• Integrated business operations mitigate risks associated with industry cycles

• Continue to strengthen our leading position in domestic refined product market

• Refining & chemical businesses entering an up-cycle

• Continue to restructure and reform, rationalize operation structure, improve management and asset efficiency

• Maintain sound corporate governance and stable dividend payout

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http://www.sinopec.com.cn

For Further Information

Investor Relations

Beijing: Tel: (8610) 64990060 Fax: (8610) 64990489Email: ir@sinopec.com.cn

Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669Email: ir@sinopechk.com

New York: Tel: (212) 759 5085 Fax: (212) 759 6882Email: fangzq@sinopecusa.com

Media Relations

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