1

China Petroleum & Chemical Corporation Results for the Year Ended December 31, 2004

March 29, 2005Hong Kong

2March 29, 2005

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.

3March 29, 2005

• 2004 Performance Highlights and Achievements

• 2004 Operating Results

• 2005 Outlook

Agenda

4

2004 Performance Highlights and Achievements

5March 29, 2005

0.923.921.69

0.0717.58

5.370.467.24

-10

0

10

20

30

40

50

60

70

80

2003 2004

TotalEBIT38.88

TotalEBIT63.07

E & P Refining Marketing Chemical Corporate & Others

Significant Profit Growth

EBIT AnalysisRMB billion

Note: Unless otherwise specified, all the financial data in the presentation are pro-forma data in accordance with IFRS.

EBIT Growth in business segments = EBIT of 2004 before deducting asset disposal, impairment losses of fixed assets and severance cost – EBIT of 2003.

RefiningEBIT Growth

ChemicalsEBIT Growth

E&PEBIT Growth

MarketingEBIT Growth

Asset Disposal

SeveranceCost

Corporate& Others

EBIT Growth Impairment Losses of

Fixed Assets

EBIT Growth in Business Segments Reduction in EBIT

6March 29, 2005

(RMB million)

Turnover 619,783 449,001 38.04

EBITDA 95,411 66,834 42.76

EBIT 63,069 38,883 62.20

Net Profit 36,019 22,424 60.63

EPS (RMB) 0.42 0.26 60.63

Cash from Operating Activities 69,081 62,097 11.25

Cash & Cash Equivalent - Ending Balance 16,381 16,263 0.73

Short-term Debt 32,307 29,181 10.71

Long-term Debt 60,822 48,257 26.04

Shareholders’ Equity 193,040 171,515 12.55

Solid Financial Performance

2004 2003 Change%

6.9

9.01

12.84

0

2

4

6

8

10

12

14

16

2002 2003 2004

%ROCE

28.4126.9

28.76

20.82

15.3111.31

20

25

30

35

40

2002 2003 2004

0

4

8

12

16

20

24

Debt/Total Capital

EBITDA Interest Coverage

Debt / Total Capital and EBITDA / Interest Coverage

Debt /Total Capital %EBITDA

Interest Coverage (X)

7March 29, 2005

22.42

36.02

16.3216.0319.58

12.0

9.08.08.08.0

0

10

20

30

40

50

2000 2001 2002 2003 2004

0

5

10

15

Net Profit Dividend

Stable Growth in Dividend Payout

RMB billion RMB cents / Share

8March 29, 2005

Further Internal Reforms

• Further management restructuring and headcount reduction

– Flattened managerial hierarchies and streamlined management structure

– Improved efficiency through net headcount reduction of 11,000 in 2004

• Internal consolidation to create enterprise value

– Redemption of Maolian Convertible Bond

– Privatisation of Beijing Yanhua

• Specialisation reform in marketing system– Established specialised product divisions including asphalt

and catalyst companies following successful operation of acrylic fibre and lubricant companies

9March 29, 2005

• Focus on core business through investment allocation

– Timely optimised and adjusted capex to strengthen refining and marketing business

• Asset swap to optimise asset structure

– Acquired chemical assets, catalyst assets and petrol stations from parent company; divested down hole operation assets

• Disposal of under-performing assets

– Disposed of and made provisions for impairment of RMB5.6 billion assets in 2004 to improve asset quality

Restructuring and Optimizing Asset Structure

10March 29, 2005

• Articles of Association and other documents were amended

to meet newly promulgated regulatory standards and mitigat

e operational risks

• Internal control system was approved by the Board and beca

me effective in 2005 after one-year trial period

• Transparency continued to improve through fair, timely, and

accurate disclosure

– Euro-money: “Best Petrochemical Company in Asia”

– Institutional Investors: “Best IR in oil and gas sector” and “Best

IR in China (incl. Hong Kong)” in sell-side view

Improved Corporate Governance

11March 29, 2005

Committed to Social Responsibility and Contribution to a Harmonious Society

• Committed to social responsibility

– Implemented HSE system initiatives

– Prepared to meet new specifications for gasoline and diesel quality

• Sponsored educational programs and supported re-building in poverty and disaster-stricken areas

• Promoted corporate image

– F1 Sinopec Chinese Grand Prix

– Partnership with Beijing 2008 Olympic Games

• Set up long-term incentive mechanism to motivate employee’s energy, creativity, and loyalty to the company

12March 29, 2005

Vision

• Develop the Company in a practical and scientific approach

• Proactively and steadily deepen reform to accelerate asset optimization

• Generate long-term, sustainable growth for shareholders, employees, customers and society

13

2004 Operating Results

14March 29, 2005

• Continued robust economic growth in China

– Nominal domestic consumption of refined oil products increased by 19.0%

– Nominal domestic consumption of three major synthetic materials increased by 11%, and ethylene-equivalent consumption grew by 5.8%

• International crude oil price fluctuated at high level

• Chemical business was in upward cycle

2004 Market Environment

15March 29, 2005

Newly Added Proved Oil Reserves (mm bbls) 284 208 375 36.54

Newly Added Proved Gas Reserves (bcf) 352.0 -254.3 20.2 N/A

Proved Oil Reserves (mm bbls) 3,267 3,257 3,320 0.31

Proved Gas Reserves (bcf) 3,033 2,888 3,329 5.02

Newly Added Oil Capacity (mmt/y) 6.09 5.93 5.54 2.70

Newly Added Gas Capacity (bcm/y) 1.015 0.89 0.928 14.04

Crude Oil Production (mm bbls) 274.15 270.96 269.8 1.18

Natural Gas Production (bcf) 207.0 187.7 178.8 10.28

Lifting Cost (USD/bbl) 6.72 6.47 6.12 3.86

2002200304/03

Change(%)2004

E&P —Growth in Production and Reserves

16March 29, 2005

25,614

19,160

14,787

0

5,000

10,000

15,000

20,000

25,000

30,000

2002 2003 2004

33.28

22.4027.56

2.111.96

2.03

0

10

20

30

40

50

2002 2003 2004

1.2

1.4

1.6

1.8

2.0

2.2

Crude Oil Price Natural Gas Price

10

15

20

25

30

35

40

45

50

55

60

Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05

WTI-NYMEX Brent-IPE Cinta

E&P – Segment Performance

International Crude Oil Price EBIT of E&P SegmentUSD/bbl

USD/bbl USD/mcf

Crude Oil and Natural Gas Realized Price

RMB million

17March 29, 2005

Refining – Safe Operation at High Utilization Rate

Crude Oil Processed (mm tonnes) 132.95 116.26 105.01 14.36

Refining Utilization Rate (%) 93.4 87.8 79.3 560bps

Sour Crude Oil Processed (mm tonnes) 27.37 23.77 20.00 15.16

Gasoline Production (mm tonnes) 23.58 21.74 19.62 8.46

Diesel Production (mm tonnes) 50.89 41.67 37.74 22.13

Light Chemical Feedstock Production (mm tonnes) 17.70 16.46 15.04 7.53

Kerosene Production (mm tonnes) 6.36 5.31 5.06 19.77

Light Stream Yield (%) 74.02 73.80 73.22 22bps

Refining Yield (%) 93.09 92.60 92.50 46bps

2002200304/03

Change(%)2004

18March 29, 2005

3.964.09

3.86

1.982.002.02

1

2

3

4

5

2002 2003 2004

1.5

2.0

2.5

refining margin cash operating cost

5,996 6,073 5,943

0

2,000

4,000

6,000

8,000

2002 2003 2004

Refining — Segment Performance

Refining Margin / Cash Operating Cost Refining Segment EBIT

USD/bbl RMB million

19March 29, 2005

Domestic Sales of Refined

Products (mm tonnes)94.59 75.92 70.09 24.59

Incl. Retail (mm tonnes) 53.25 38.85 34.73 37.07

Distribution (mm tonnes) 19.65 15.33 12.63 28.18

Total Number of Gas Stations (Unit) 30,063 30,242 28,127 -0.6

Incl. COCO Gas Stations 26,581 24,506 24,000 8.47

Franchised Gas Stations 3,482 5,736 4,127 -39.30

Annual Average Throughput Per Station

(tonne/station)2,003 1,686 1,560 18.80

Marketing — Expanded Sales Network, Retail and Distribution

2002200304/03

Change(%)2004

20March 29, 2005

167175166Marketing Cash Operating Cost

200420032002

8,401

11,943

14,716

0

5,000

10,000

15,000

20,000

2002 2003 2004

2000

3000

4000

5000

Jan Mar May Jul Sep Nov

2003 2004 2005

2000

3000

4000

5000

Jan Mar May Jul Sep Nov

2003 2004 2005

Marketing – Segment Performance

Marketing Segment EBIT

RMB million

RON 90# Gasoline Guidance Price

RMB/Tonne

0# Diesel Guidance Price RMB/Tonne

RMB/Tonne

21March 29, 2005

Unit: 1,000 tonnes

Ethylene 3,637 3,169 2,716 14.77

Synthetic Resins 5,534 4,691 4,006 17.97

Incl. Performance Compound 2,894 2,305 1,847 25.55

Synthetic Rubbers 561 502 458 11.75

Monomers & Polymers for Synthetic Fibers 5,049 4,418 3,834 14.30

Synthetic Fibers 1,295 1,280 1,153 1.17

Incl. Differential Fiber 589 477 402 23.48

Urea 2,630 2,028 2,666 29.68

Operation data for 2003 in the above table don’t include production from Maoming ethylene. Those for 2004 include production from Maoming ethylene, but don’t include chemical assets acquired from Sinopec group at the end of 2004.

Chemicals — Full Capacity to Meet Market Demand

2002200304/03

Change(%)2004

22March 29, 2005

18,721

596

3,543

0

5,000

10,000

15,000

20,000

2002 2003 2004

147.33144.49149.24

100

120

140

160

180

2002 2003 2004

Chemicals – Segment Performance

USD/tonne

Chemicals Segment EBITRMB million

Ethylene Cash Operating Costs

Chemicals Price Spread (1990 ~ Feb.2005)

USD/tonne

0

200

400

600

800

1000

1200

Jan-1990

Jan-1992

Jan-1994

Jan-1996

Jan-1998

Jan-2000

Jan-2002

Jan-2004

LDPE-Naphtha PP-Naphtha

23March 29, 2005

2,5252,722 2,951

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2002 2003 2004

Cost Reduction

(RMB million)

24March 29, 2005

• E&P – RMB21.234 bn to improve reserves profile, and increase proved reserve and production

• Refining – RMB14.272 bn, newly added primary refining capacity of 8.3 MMt/y; further improved conversion capacity; Zhejiang-Shanghai-Nanjing crude oil pipeline put into operation

• Chemicals – RMB11.025 bn, newly added ethylene capacity 270 Mt/y; revamping projects of some chemical facilities progressed smoothly

• Marketing – RMB16.678 bn, construction of refined oil pipeline progressed smoothly; 2,075 gas stations added

• Corporate and others – RMB1.55 bn for information system, etc

0

10

20

30

40

50

60

70

2001 2002 2003 2004

E & P Refining MarketingChemicals Others

Optimized Investment Focus and Accelerated Asset Restructuring

(RMB bn)

Capex in the Past 4 Years 2004 Capex: RMB64.75 bn

25March 29, 2005

New Achievements in R&D and IT Application

• New Achievements in core technology and proprietary technology

– 639 domestic patents and 48 foreign patents were granted

– Breakthrough in natural gas exploration in marine phase sedimentary structure in southern China

– Successfully developed a number of E&P, refining and chemical technologies

• Scope of IT applications continue to expand

– Comprehensive E&P business management system and Ningbo-Shanghai-Nanjing pipeline information system successfully launched

– Promote application of petrol IC card

26March 29, 2005

Major JV projects progressed smoothly

• Successful commissioning of Ethylene projects with BP in Shanghai

• Ethylene project with BASF is in test run stage

• The coal gasification project with Shell in Hunan is expected to be completed at the end of 2005

• Fujian integrated petrochemical project was in preliminary engineering stage

• Retail JVs with Shell and BP started operations

Smooth Progress in JV Projects

27

2005 Outlook

28March 29, 2005

• Global economy is expected to experience stable growth

– Crude oil price is expected to fluctuate at high levels

– Chemical business is still in the up-cycle

• Chinese economy is expected to maintain rapid growth, leading to higher consumption of refined oil products and chemicals

• Market competition will intensify with opening of retail market and reduction in chemical import tariffs

2005 Market Analysis

29March 29, 2005

Crude Oil Production (mmbls) 276.9 274.15 1.00

Natural Gas Production (bcf) 214.3 207.0 3.53

Refining Throughput (mm tonnes) 143.00 132.95 7.56

Domestic Sales of Refined oil (mm tonnes) 102.00 94.59 7.83

Incl. Retail (mm tonnes) 57.50 53.25 7.98

Ethylene Production (1,000 tonnes) * 5,190 4,074 12.74

2005 Production Plan

200405/04

Change(%)2005

* Operation data for 2004 include production from chemical assets acquired from Sinopec Group at the end of 2004. Production plan for 2005 include production estimates for Shanghai Secco and BASF-YPC

30March 29, 2005

• E & P: expand high-quality resources; improve reserves profile and increase production

• Refining: priority will be given to construction of crude pipeline along Yangzi River and 2nd phase of Ningbo-Shanghai-Nanjing pipeline; Accelerate upgrading and expansion of refineries along coastal areas and start construction of Qingdao Refinery

• Chemical: focus on re-vamping and construction of large-scale ethylene, aromatic and PTA facilities

• Marketing: further improve sales network; develop pipelines; optimize storage facilities layout; accelerate construction of southwest refined oil products pipeline and install petrol IC card instrument

2005 Capex Plan

2005 Capex Plan: RMB 62.0 billion

RMB billion

Pave the way for commercial operation of Shanghai Secco and BASF-YPC and expedite the progress of Fujian refining-chemical integrated project

22.9

16.1

10.4

11.01.6

E&P RefiningChemical Marketing

Corporate & Others

31March 29, 2005

Total RMB 2.5 bn

2005 Cost Reduction Plan

RMB million

Additional 15,000 headcount reduction is expected this year.

600

600700

600

E&P Refining Chemical Marketing

32March 29, 2005

Seize opportunities to develop businesses in a practical and

scientific approach

• Priority will be given to safe operations to maintain sound operational

momentum and strive for volume growth

• Continue to deepen reforms

• Continue structure adjustment, focus on asset quality, efficiency and returns

Conclusion

Achieve sustainable and effective development

33March 29, 2005

http://www.sinopec.com

For Further Information

Investor Inquiries

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 Inquires

Tel: (8610) 64990092Fax: (8610) 64990093Email: media@sinopec.com.cn