Star Metro - SEG Announced 2024 Annual Results Total Value of New Contracts Exceeded RMB 100 Billion With Record Dividend Payouts

Over the past year, in the face of rapidly evolving industrial transformation, the complex and severe external situation and the fiercely competitive market environment, the Board and the management of the Company actively promoted market development, spared no effort in optimizing production and operation and accelerated the forging of new quality productive forces. We presented new vitality because of the high-quality development, delivering a satisfactory report to our shareholders: the Company achieved an annual operating revenue of RMB64.198 billion, a year-on-year increase of 13.9%; a net profit of RMB2.474 billion, a year-on-year increase of 5.5%; and a newly signed contract value of RMB100.613 billion, a year-on-year increase of 25.4%, the Company accomplished various production and operation tasks and QHSE targets. With an overall consideration of the profitability of the Company and the needs for sustainable development in the future, the Board proposed a final dividend of RMB0.208 per share, taking into account of the interim dividend already distributed, the total dividend for the full year was RMB0.358 per share with a dividend payout ratio of 65%, reaching a new high in the total annual dividend amount since the Company's listing.

The Group kept enhancing our value creation capability through engineering services, technological innovation, capital operations to seize the positions as a "Leader in the Engineering Industry" and a "Top Performer in the Capital Market".

Firstly, we aligned our efforts for high quality development and value creation of the Company. We paid great attention to the capital market's expectations for the Company's development and the concern for value enhancement. Through more transparent information disclosure and more proactive capital market communication, the high-quality development achievements have become more prominent. The Company attaches great importance to shareholder returns. The Company has maintained a dividend yield of 65% for four years in a row, achieved continuous growth in the amount of dividends paid out. The Company has actively safeguarded its value by conducting share repurchases for two consecutive years. The Company is committed to building itself into an enterprise with leading ESG performance. The MSCI ESG rating has been upgraded to BB level, making it the highest and the only company in the Chinese engineering industry to receive this rating.The recognition from the capital market continues increasing, and the goal of returning to "Southbound Trading" was successfully achieved. Secondly, we built its overall market competitiveness through comprehensive service capabilities. The Company made another historical breakthrough in market development. The total number of new orders maintained double-digit growth for three consecutive years and reached RMB100.613 billion, which signified our business successfully entering into the RMB100 billion club. New orders signed overseas made new highs in new markets, new varieties and new fields, and recorded USD5.349 billion, representing a significant year-on-year increase of 79.6%. The portfolio of our orders was further optimized. New orders signed in design consulting category exceeded RMB4.8 billion, representing a year-on-year increase of 16.1%. New orders signed in EPC category accounted for more than 70% of the total, laying a solid foundation for the Company to enhance its source competitiveness. Thirdly, we strengthened lean management to improve operational efficiency in all fronts. We strictly performed contracts and put greater emphasis on multi-objective comprehensive management and control of project quality, safety, progress and efficiency. The revenue scale from EPC and front-end business grew steadily and their weighting on out turnover continued to increase and stabilized overall project profitability amid the fierce market competition. Because of high standards, high quality and high efficiency of the construction and provision of a number of industry benchmark projects, we earned acclamation from the industry, including 9 provincial and ministerial quality awards, 9 provincial and ministerial design awards, and 9 first prizes of National Excellent Welding Projects. Fourthly, we continued promoting technological innovation to create high-quality technological supply. The amount of contracts related to technology development, technology licensing and technology transformation throughout the year reached RMB1.1 billion, representing a year-on-year growth of over 30%. Our ability to create profits in scientific research significantly improved. Relying on the gradual improvement of the technology matrix and synergetic efforts, we achieved major breakthroughs in exporting patented technologies such as polyolefins and aromatics, and entered the innovation and competition arena of core technologies in the global energy and chemical industry chain.

The Group takes the internationalization of corporate operations as the core development goal, promotes the internal capability building towards the high-end, and creates an integrated and co-produce industrial ecosystem with our industry chain partners. Firstly, we make every effort in constructing an overseas operation model of "international rules + Chinese efficiency". After more than 70 years of development and accumulation, the Company has nurtured a high-performance team with rich experience, complete professional skills and sufficient personnel, and has engineering service capabilities covering the whole industrial chain and life cycle of the energy and chemical industry. In the nearly three decades of internationalization efforts, the Company has learned from others with an open mind, while constantly adapting to "international rules", it has promoted the alignment of domestic and international standards, promoted the deep integration of "international rules" and "Chinese efficiency", and served global owners with high-quality engineering capabilities. Secondly, we will actively leverage on the two capabilities of "technology + engineering front-end" and "low-cost operation of projects". By relying on the advantages of integrated collaborative innovation in technology research and development, engineering transformation and engineering design, the Company will continue to build high-level front-end engineering capabilities and accelerated its expansion into the global high-end business track. We will optimize the whole process of design, procurement and construction, vigorously promote the application of advanced tooling, deepen the overseas localized operating capability system, promote the construction of low-cost centers at home and abroad and build up our competitive and low-cost execution capabilities. Thirdly, we will establish long-term cooperative partnership with strategic customers for win-win cooperation. By adopting the approaches of "going out" and "bringing in", communication will be enhanced and mutual trust will be deepened with strategic customers such as large national oil companies. While promoting the Group's advantages in industrial chain, technology chain and engineering services comprehensively, we will acquire first-mover advantages with more advanced and more diversified preliminary and front-end services. Fourthly, we will work with partners in the industrial chain to build an integrated and shared business environment. We will continue to expand the "firends cirlce", promote the comprehensive strategic partnership with international engineering companies, core suppliers and strategic sub-contractors, and strengthened in-depth cooperation in the areas of, among others, preliminary development of projects, optimizing the global supply chain and project implementation, so as to establish a global industrial chain system with international competitiveness.

The Group is driven by innovation to build the future competitiveness, actively promotes the deployment and application of artificial intelligence, and plays a leading role in the novel industrialization of the engineering and construction industry. Firstly, a new paradigm of deep integration of industry-university-research driven by enterprise needs will be promoted. By fully utilizing the advantages of integration and innovation of projects and engineering transformation, an "innovation chain" will be deployed around the "industry chain" to establish a planning and sourcing base of original technology. Through further coordinating with upstream research institutions and downstream users actively, technological innovation will continue to increase and open-up for cooperation. By jointly establishing the "Biomass Utilization Joint Research Center (High-value Utilization of Lignin)" with Guangdong University of Technology, the technological development of biomass utilization series and the industrial applications of research results are accelerated. The "Low-carbon Joint Research Center" is jointly established with Sun Yat-sen University, and deep cooperation is also carried out with research institutes such as Tsinghua University, Chinese Research Academy of Environmental Sciences, Shanghai Institute of Organic Chemistry, CAS, SINOPEC Beijing Research Institute of Chemical Industry and SINOPEC Research Institute of Petroleum Processing in multiple innovation fields. Secondly, we will focus on development needs of the industry and accurately allocated our R&D investments. We will increase investment in high-end carbon materials, conversion of low-cost oil, conversion of high-value oil to specialties, green and low-carbon, and new energy fields, promote the transformation and application of achievements, and promote the high-end and green development of the industry; we will accelerate the R&D layout in the fields of high-end materials such as low-altitude economy, robots and lightweight automobiles. Thirdly, we will actively promote the thematic study on "Leading the Novel Industrialization of the Engineering Construction Industry". Phased achievements have been made in the areas of standardized and refined design, integrated collaboration, factory-like intelligent manufacturing, information-based management, digital delivery, intelligent operation and maintenance, and robot substitution. We will organize practical competition in design optimization and studies on constructability, and establish specifications and systems for integration and collaboration of design and construction, with initial results achieved. The idea of "replacing manpower with machines" will be strongly promoted, R&D and applications of advanced tooling represented by welding robots and intelligent welding equipment will be carried out and strive to reduce costs and increase efficiency in realizing economies of scale. Fourthly, we will respond quickly to "Artificial Intelligence +" action and inject the gene of intelligence into the development of the industry. We will explore the in-depth application of "AI for Science, AI for Design, AI for Engineering, AI for Operation" and strive to promote the transformation of production methods. In the field of engineering research and development, we promote the all-round empowerment of artificial intelligence to technological transformation, optimization and upgrading, to build a new paradigm for scientific research and fully unleash the multiplier effect of digitalization and intelligence. In the field of engineering design, the Group carried out thematic research on intelligent design (AI), to promote the innovative application of artificial intelligence and big data technology in the field of engineering design, build a knowledge graph to improve design efficiency, and explore the transformation from traditional design to generative design. In the field of engineering construction, we tried to apply artificial intelligence to optimize the engineering construction scheme of the whole life cycle, shorten the iteration cycle of the scheme, optimize the construction scheduling arrangement, and improve the overall construction efficiency.

Mr. JIANG Dejun Chairman of SEG, said: "Looking forward to the future, both the "time" and "trend" of the external environment are undergoing profound changes. Global changes, industrial restructuring, and the scientific and technological revolution are surging, and are intertwined to create more complex and severe challenges. However, the opportunity of breaking the deadlock is precisely in challenging moments. Wherever the challenges lie, new opportunities are being bred. The transformation of China's energy and chemical industries is accelerating significantly, and the Company's service advantages in the whole industry chain and full life cycle are bound to brighten up. Although the global energy and chemical industry is highly competitive, long-term capital expenditure will provide the Company with incremental resources for its international operation. Artificial intelligence is catalyzing profound changes in all social and economic fields and links. The in-depth fusion of engineering research and development, engineering design, engineering construction and artificial intelligence will bring disruptive value opportunities. Standing at the intersection of the conclusion of the 14th Five-Year Plan and the beginning of the 15th Five-Year Plan, we will continue to adhere to the basic idea of high quality development in the aspects of "strengthening strategic leadership and coordination and integration, consolidating the advantages of traditional main businesses, driving technological innovations continuously, leading new-type industrialization of the engineering industry, promoting the internationalization of engineering enterprise's operation, and realizing the diversification of value creation of the listed company, to unswervingly move towards a world-class level. In the next step, we will go all out to coordinate the relationship between development and safety, adhere to the six bottom lines of "quality, safety, environmental protection, compliance, stability and integrity", embed risk management into every aspect of the Company's production and operation, and improve the risk prevention and control capabilities throughout the entire process through lean management. The Company will strive to make international operations as a new growth pole for the Company's high-quality development, further promote the dual-wheel driving efforts of "international rules + Chinese efficiency", further strengthen the two capabilities of "technology + engineering front-end" and "low-cost operation of projects", effectively prevent and control significant risks, and strive to achieve "bid-winner, excellent performance and efficacy" in overseas projects. The Company will accelerate the construction of a novel industrialization benchmark leading the way of industrial innovation. The engineering construction industry will be empowered through "integrated collaboration, technological innovation, digital and intelligent transformation, industrial intelligence, and green and low-carbon". Compared with other construction engineering companies, the Company has a unique talent advantage-reasonable structure and streamlined staff. We will actively embrace the AI revolution, seize historical opportunities, establish new processes for human-machine collaboration, cultivate "AI+" compatible talents, strive to achieve a breakthrough and double the per capita output value and marginal benefits, and promote the Company's production and operation to achieve leapfrog growth in quantity and efficiency. The initial heart is like a rock, and the journey is like a rainbow. We will further leverage on the Company's advantages in the integration of the whole industrial chain, market advantages, brand advantages, technology advantages and talent advantages to promote higher-quality development of the Company, unswervingly move towards a world-class level, and achieve the common improvement in shareholder value, customer value, social value and employee value!"

Business Review and Highlights

Maintaining a good momentum of QHSE performance

During the Reporting Period, the Group had 1,596 on-going domestic and overseas projects with over 100,000 on-site employees on average per day. As at the end of the Reporting Period, the cumulative safety labor hours were 380 million, and no safety, quality or environmental protection incidents were reported throughout the year.

During the Reporting Period, the Group continuously improved its project QHSE control standards and the management system operated effectively. The Group comprehensively promoted the construction of the "three basics" work safety standardization team, carried out training and certification on three types of management personnel including group leaders, team leaders and subcontractors, and completed the training covering all the strategic subcontractors. The Group promoted the application of the "Safety Pocket Book", established a comprehensive training and business competition mechanism for design, technology, quality and safety personnel, and the training performance of grassroots safety personnel and professional quality inspectors increased by 22% and 36%, respectively. The Group implemented the informatization management of "major hazardous projects", carried out inspection on design quality and physical quality, strengthened process assessment, and promoted the transformation of accident handling to prevention in advance. Focusing on the four major goals of carbon reduction, pollution reduction, efficiency improvement and green development, the second stage of green enterprise action was carried out, and the key laboratory for soil and groundwater pollution prevention and green remediation was established to comprehensively promote the treatment of VOCs and dust. The Group formulated green and ecological design guidelines, to strengthen the source management of energy and environment for construction projects and promote the intrinsic energy conservation and environmental protection of construction projects.

During the Reporting Period, ExxonMobil Huizhou Ethylene Project, a project designed and constructed by the Group, was awarded the "President's Award for Safety of Global Project" by the owner for the second time.

Quantitative and qualitative increase in market development

During the Reporting Period, the value of new contracts signed by the Group was RMB100.613 billion, breaking the threshold of RMB100 billion for the first time and hitting a new record high, representing a year-on-year increase of 25.4%. Among which, the value of newly signed domestic contracts was approximately RMB62.102 billion, representing a year-on-year increase of 5.6%; the value of newly signed overseas contracts was approximately USD5.349 billion, representing a year-on-year increase of 79.6%.

In the domestic market, the Group fully leveraged on its advantages in the entire industry chain to further grow in strategic emerging fields such as new technologies, new materials and new energy while consolidating its advantages in traditional businesses. During the Reporting Period, we signed the technology licensing contracts covering million-ton ethylene, million-ton aromatics, polypropylene and third-generation DMTO (DMTO-III); signed a batch of engineering design contracts for high-end new materials projects including CHN Energy Coal Chemicals, CNOOC Shell Huizhou Phase III Ethylene, CNOOC Shell Huizhou Polycarbonate and Yatong Chemical and Zhejiang Petrochemical; and signed a large batch of EPC contracts for areas such as refining and chemical integration, refining renovation and upgrading, new coal chemicals and new materials.

During the Reporting Period, the representative newly signed domestic contracts included the EPC contract for certain units of North Huajin United Petrochemical Fine Chemical and Raw Material Engineering Project (the "Aramco Huajin Project") with a total contract value of approximately RMB6.364 billion; the EPC contract for certain units of SINOPEC SABIC Petrochemical Fujian Gulei Ethylene and Downstream Deep Processing Consortium Project (the "SABIC Mangguo Ethylene Project") with a total contract value of approximately RMB6.164 billion; the EPC contracts for certain units of Lianhong Gerun (Shandong) Integrated Project of New Energy Materials and Biodegradable Materials (the "Lianhong New Materials Project") with a total contract value of approximately RMB3.536 billion; the EPC contracts for certain units of China Coal Yulin Coal Deep Processing Base Project (the "China Coal Yulin Coal Chemical Project") with a total contract value of approximately RMB3.117 billion; the EPC contracts for Sinopec Ningbo Zhenhai Refining and Chemical Polyolefin Elastomer (POE) unit (the "Zhenhai Refining and Chemical POE Project") with a contract value of approximately RMB1.160 billion; the EPC contracts for Sinopec INEOS Tianjin Nangang Ethylene and Downstream High-end New Materials Industry Cluster Polyolefin Elastomer (POE) unit (the "Tianjin Nangang POE Project") with a contract value of approximately RMB882 million. During the Reporting Period, the value of new contracts signed by the Group in the strategic emerging business fields increased significantly by 63% on a year-on-year basis. Among them, 37 contracts were awarded in the clean energy/new energy fields, with the value of new contract of approximately RMB100 million; 209 contracts were awarded in the emerging fields such as new materials and new technologies, with the value of new contract of approximately RMB12.4 billion.

In the overseas market, the Group strengthened the alliance with international peers and enhanced high-level mutual visits and promotional exchanges with strategic clients, thereby continuously expanding and optimizing our overseas market development. During the Reporting Period, we signed the PMC contract for Saudi Aramco's Ras Tanura Island Steam Treatment Facility Project, achieving a historic breakthrough in overseas PMC business; and won the bid of a series of technology transfer contracts, achieving significant progress in exporting polyolefin and aromatic technologies. We were awarded contracts for the basic design of sulfuric acid project for Kazakhstan Copper, and the feasibility studies for phosphogypsum project in Morocco and coal-to-methanol/aviation kerosene project in South Africa, making further breakthroughs in new markets and fields.

During the Reporting Period, the representative newly signed overseas contracts included the EPC contracts of the ethane cracking project of the Kazakhstan Silleno petrochemical complex project (the "Kazakhstan Silleno Project") with a contract value of approximately US$1.250 billion; the EPC contracts for gas compression (GCP) of Saudi Aramco's Jafurah gas expansion project phase III (the "Saudi Jafurah Project Phase III") with a contract value of approximately US$900 million; the construction contracts of Saudi Arabia Mining Corporation's northern sulfur and phosphorus chemical project phase III (the "Saudi Northern Sulfur and Phosphorus Chemical Project") with a contract value of approximately US$363 million; the construction contracts of the mechanical, electrical and instrumentation installation works of the ADNOC MERAM ethane recovery project in the United Arab Emirates (the "UAE Ethane Recovery Project") with a contract value of approximately US$215 million.

Continuous improvement in project execution capability

During the Reporting Period, the Group promoted the construction of on-hand projects while maintaining high quality, organized the review of implementation plans for key projects, strengthened the entire process management of projects, soundly conducted

assessment on project milestones, strengthened the management of contract changes and process settlement, and effectively prevented operational risks. The Group continued to carry out special work on design optimization, carried out special work on design optimization with the pilot projects such as Aramco Huajin, Zhenhai, Saudi Amiral, etc. and completed a total of 148 design optimization projects; further promoted the experience in integration of design and construction to improve design and construction efficiency. The Group strengthened the cultivation of strategic subcontractors, resulting in effective improvement of the execution ability of subcontracting resources and project quality. The Group actively prepared for the establishment of low-cost operation centers and resource allocation centers for overseas regional projects, continuously improved its ability to localize human resources management for overseas projects, organized projects for enhancement of overseas purchase management and initiated the establishment of the platform for management of overseas purchase resources to further reduce cost and increase efficiency.

During the Reporting Period, the Group's major projects under implementation were as follows:

Zhenhai Refining and Chemical, and High-end Synthetic New Materials Project (EPC) was completed and delivered, and officially entered the stage of inputting production materials and conducting trial operation, marking the completion of the largest petrochemical industrial base in China.

• ExxonMobil Singapore CRISP Integrated Project (C) was substantially completed and was in the final stage with an overall progress of over 90%.

Note: "EPC" refers to engineering, procurement and construction contracting, "BEPC" refers to basic design + EPC and "C" refers to construction contracting.

Steady progress in leading technology

During the Reporting Period, the Group signed various new technology development contracts with a total contract value of RMB600 million, representing a year-on-year increase of over 50%; and new technology licensing and technology conversion contracts with a total amount of RMB500 million, representing a year-on-year increase of over 20%.

During the Reporting Period, the Group filed 762 new patent applications, of which 76.6% were invention patents; and 384 newly licensed patents, of which 52.3% were invention patents. As at the end of the Reporting Period, the Company had 4,589 valid patents, of which 50.6% were invention patents. The number of patents continued to grow and the quality of patents was consistently optimized.

During the Reporting Period, the Group received a total of 70 science and technology progress awards in scientific and technical innovation and engineering construction fields at the provincial and ministerial or above level, including the second prize of the National Scientific and Technological Progress Award for the "design, manufacturing and maintenance technology of long-life large-scale ethylene cracking reactors", the first prize of the SINOPEC Science and Technology Progress Award for the "research and application of key technologies for long-term safety production in high acid gas fields", the second prize of the SINOPEC Technology Invention Award for the "development and application of technology for production of chemicals through catalytic cracking of crude oil (CCPP)"; two national excellent design bronze awards; and two national excellent engineering awards.

During the Reporting Period, the Group focused its efforts on tackling key core technologies, undertaking a total of 31 national-level projects, 33 key research projects of the group companies and 16 major projects of the group companies.

Leading new industrialization

The Group focused on developing new quality productive forces and building core competitiveness on innovation and practicality. The Group proactively adapted to and actively led the new round of technological revolution and industrial transformation in the engineering construction industry, promoted the coordination of design, building, construction, operation and maintenance, and accelerated the application of advanced technologies with low resource consumption and environmental pollution. During the reporting period, the Group actively promoted the research on 12 specialized projects for "leading the new industrialization of the engineering construction industry", and made phased achievements in areas including standardized lean design, integrated collaboration, industrialized intelligent manufacturing, informatization management, digital delivery, intelligent operation and maintenance, and robot substitution.

During the Reporting Period, the Group optimized and integrated its corporate management system and management process to build a unified and complete information application framework 2.0. Under this framework, activities over the full life cycle of engineering projects were systematically integrated to maximize value in the full life cycle of engineering construction. The Group further improved the informatization deployment of "data + platform + application", and coordinated the data crossing and business process standardization work in aspects such as operation management, project management and smart construction site.

During the Reporting Period, the Group took the lead in conducting research on the theme of AI design to explore transformation from traditional design to generative design. The Group continued to strengthen the application of research results of "Machine OEM", and continued to promote the research and development and application of construction technologies such as automatic welding robots and intelligent welding demonstration production lines as well as high-efficiency tooling, so as to effectively reduce costs and improve efficiency. Leveraging on the roles of big data and technical experts, the Group led the implementation of digital pipeline network construction in 31 refinery and chemical enterprises, accelerating the development of smart maintenance and operation projects. With the Group's coordination, industrial Internet + equipment, localized 3D factory design software, and smart projects in the field of design and construction were also seen advancing. During the Reporting Period, the adaptation verification of the industrial simulation software designed by the Group passed the national acceptance inspection.

Activate talent's initiative

Employee has always been the major force in the Group's development. During the Reporting Period, the Group handled talent-related matters with broader vision and more resources under its in-depth development strategy featured as "building a strong enterprise through talent". Specifically, the Group focused on identifying suitable personnel for management positions, which highlighted the Group's commitment to meritocracy. As a result, the competence of the Group's management team enhanced continuously. The Group also initiated trial programs to introduce skilled workforce in the society through optimizing and refining "talent introducing, cultivating and motivating" measures to pool together talents and build a strong team. Meanwhile, the Group continued to supplement expert management systems, improve position management measures and strengthen trainings for technicians and onsite managerial group leaders at all levels. Underpinned by deepened reform, the Group implemented group-wide term-based appointment and covenant-based management systems for managerial roles at all levels, so as to motivate the enterprise's kinetic energy for high-quality development.

Business Prospects

In 2025, adverse effects brought by changes in external environment may continue, but with the introduction of a series of favorable policies by the Chinese government, social confidence is significantly boosted and factors for positive economic development are accumulating, therefore creating a favorable environment for the production and operations of the Group.

In 2025, the Group will adhere to the overall keynote of "seeking progress while maintaining stability and promoting stability through progress" according to the work arrangement of the Board to continuously promote "effective improvement in quality and

reasonable growth in quantity" and strive to achieve the annual production and operation goals with high quality. In light of the industry development trends and actual production and operations, the Group has set the targets for 2025 with respect to new contract amount of RMB63 billion in domestic market and USD5 billion in overseas market. In line with the annual targets, the Group will focus on the following tasks:

Firstly, the Group will exert greater efforts in market development and effectively improve the quantity and quality of contracts. In domestic market, the Group will consolidate its leading position in traditional fields, strengthen the overall development of and strategic cooperation with strategic customers to expand customer base; and seize the new opportunities brought by energy transformation and upgrading and the development of the strategic emerging industries, as well as the new business opportunities brought by the growth of demand for new and high-end materials to move towards becoming a comprehensive service provider in multiple fields. In oversea market, the Group will increase its customers and partners with a more open attitude, consolidate and deepen its relationships with key customer and partners, continue to expand its footprint in overseas market and increase its revenue from international business; leverage on the opportunity of regional capacity expansion to expand and strengthen its fundamental footprint in the Middle East and Central Asia markets, continue to deeply cultivate the Africa, the Southeast Asia and the Americas markets and strengthen market cultivation and diversified expansion; and persist in leading high-end front-end business and participate more extensively in high-end technology and front-end engineering projects.

Secondly, the Group will exert greater efforts in project management to promote the improvement of profitability and quality. The Group will strengthen risk management throughout the entire project process, continuously improve contract performance capabilities, enhance cost control and improve the progress, revenue, cost planning as well as contract changes and process settlement management. The Group will increase its investment in domestic and overseas manpower and resources, focus on the overall planning and management of projects, and promote the establishment of overseas low-cost operation centers, so as to complete the construction of projects with high efficiency and high quality, thereby enhancing the value of shareholders, customers, the society and employees as a whole. The Group will also give full play to the advantage of the integration of the entire industry chain, focus on the optimization of the entire process of design, procurement and construction, and accelerate the promotion and application of research results of, among others, design optimization and constructability, thereby enhancing the profitability of the entire chain. The Group will enhance its risk identification and management at the source, strengthen the establishment of QHSE management system, enhance the whole-process supervision and improve the quality and ability of all employees, thereby consolidating the foundation of green, environmental protection and safety development of the Company.

Thirdly, the Group will exert greater efforts in technological innovation and create new driving forces and advantages for development. The Group will be committed to the competitiveness analysis of the entire industry chain, optimize its deployment with reference to the needs for transformation and upgrading of the industry, strengthen opening-up cooperation, deepen the collaboration between the industry and academia and research, and promote the strengthening, replenishment and extension of the industrial chain of the Company. The Group will focus on high-end and green development and accelerate the integrated innovation and engineering transformation for new energy and new material projects, thereby injecting new impetus into the quality improvement and efficiency enhancement of traditional industries and the efficient development of emerging industries. The Group will also deepen the transformation and application of research results of "machine OEM", vigorously implement the strategy of "replacing labor with machines", and continuously promote the efficiency enhancement for construction management. The Group will actively utilize digital technologies and green technologies to transform and upgrade traditional industries while deploying its resources in future industries, accelerate the achievement of technological breakthroughs and scenario application along the entire chain, and optimize and upgrade the Company's business by AI technology empowerment.

Summary of Financial Data and Indicators Prepared in Accordance with International Financial Reporting Standards ("IFRS")

Unit: RMB'000

Unit: RMB'000

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This press release is issued by PRChina Limited on behalf of SINOPEC Engineering (Group) Co., Ltd.

About SINOPEC Engineering (Group) Co., Ltd.

The Group is a leading energy and chemical engineering company in the PRC with strong international competitiveness and can provide domestic and overseas clients with overall solutions for petrol refining, petrochemicals, aromatics, coal chemicals, inorganic chemicals, pharmaceutical chemicals, clean energy, storage and transportation facilities, environmental protection and energy saving, among other industry sectors. The Group is an integrated service provider for the whole industry chain and the whole life cycle in energy and chemical industry and can provide overall industry chain services including engineering consulting, technology licensing, project management contracting, financing assistance, EPC (engineering, procurement and construction) contracting, as well as design, procurement, construction and installation, lifting and transportation of large equipment, precommissioning and start-up.

After nearly 70 years of continuous development, the Group currently has an academician of the Chinese Academy of Sciences, three academicians of the Chinese Academy of Engineering and more than10,000 professionals. The Group has rich project management and implementation experience, and owns and cooperatively owns patents and know-how in core business areas. The Group has delivered on schedule hundreds of modern factories with enormous investment, complicated process, advanced technology and high quality to clients in more than 20 countries and regions around the world, established long-term and steady cooperative relationships with large energy and chemical enterprises at home and abroad, maintained an extensive and stable client base, and enjoys remarkable industrial influence and social reputation.

In the future, adhering to the development orientation of "Integrated Service Provider with Whole Industry Chain and Whole Life Cycle in Energy and Chemical Industry", the Group will base itself on the energy and chemical engineering construction industry, continuously broaden its business scope and extend its value chain. The Group take "Engineering Innovation" and "Value Creation" as the development engines and deepen the implementation of the six development strategies of "Value-Oriented, Innovation-Driven, Green & Clean, Talent-Based, Globalization-Targeted, Fusion & Symbiosis". The Group comprehensively improve the level of safe, efficient, green and lowcarbon service in the business chain, and fuel a new momentum in achieving the corporate vision of "building the world's leading technology-oriented engineering company".

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that the Group expects or anticipates will or may occur in the future (including but not limited to projections, targets, other estimates and business plans) are forward-looking statements. The Group'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 the price fluctuation, possible changes in actual demand, foreign exchange rate, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond the Group's control. In addition, the Group makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Investor and Media Enquiries:

SINOPEC Engineering (Group) Co., Ltd. - Office of the Board

Liu Jingjing /Zheng Zhexia
Tel: (86) 10 5673 0523 / (86) 10 5673 0525
Email: [email protected]
PRChina Limited

David Shiu / Joanne Liu / Rachel Chen
Tel: (852) 2522 1838 / (852) 2522 1368
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File: [Press Release] SEG Announces 2024 Annual Results

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L.Pelletier--SMC