Core Viewpoint - Sinopec's stock has declined nearly 4% following the release of its mid-year financial results, reflecting significant drops in revenue and net profit compared to the previous year [1] Financial Performance - Sinopec reported a revenue of 1.41 trillion yuan for the first half of the year, a decrease of 10.6% year-on-year [1] - The net profit attributable to shareholders was 21.483 billion yuan, down 39.8% year-on-year [1] - Main business revenue for the first half was 1.3804 trillion yuan, a decline of 10.7% year-on-year, primarily due to falling prices of oil and petrochemical products as well as decreased sales volumes [1] Quarterly Insights - UBS reported that Sinopec's net profit for the second quarter was 8.2 billion yuan, representing a year-on-year decline of 53% and a quarter-on-quarter decline of 38% [1] - The firm anticipates a slight improvement in Sinopec's profitability for the third quarter, citing stable oil prices compared to the previous quarter and minimal negative impact from crude oil inventory [1] - The third quarter is traditionally a peak season for chemical products, which may lead to increased profits in that segment [1] Long-term Outlook - UBS believes that China's anti-involution measures, combined with the exit of foreign production capacity, will enhance the fundamentals of refining in the long term [1] - Sinopec has lowered its full-year capital expenditure guidance by 5% [1]

Core Viewpoint - Sinopec's stock has declined nearly 4% following the release of its mid-year financial results, reflecting a significant drop in revenue and profit compared to the previous year [1] Financial Performance - Sinopec reported a revenue of 1.41 trillion yuan for the first half of the year, a year-on-year decrease of 10.6% [1] - The net profit attributable to shareholders was 21.483 billion yuan, down 39.8% year-on-year [1] - Main business revenue for the first half was 1.3804 trillion yuan, a decline of 10.7% year-on-year, primarily due to falling prices of oil and petrochemical products as well as decreased sales volumes [1] Quarterly Insights - UBS reported that Sinopec's net profit for the second quarter was 8.2 billion yuan, representing a year-on-year decline of 53% and a quarter-on-quarter decline of 38% [1] - The firm anticipates a slight improvement in Sinopec's profitability for the third quarter, citing stable oil prices compared to the previous quarter and minimal negative impact from crude oil inventory [1] - The third quarter is traditionally a peak season for chemical products, which may lead to increased profits in that segment [1] Long-term Outlook - UBS believes that China's anti-involution measures, combined with the exit of foreign production capacity, will enhance the fundamentals of refining in the long term [1] - Sinopec has lowered its full-year capital expenditure guidance by 5% [1]

Core Viewpoint - China Petroleum & Chemical Corporation (Sinopec) reported strong financial performance for the first half of 2025, with significant revenue and profit growth, alongside a commitment to shareholder returns through dividends and share buybacks [1][3]. Financial Performance - The company achieved a revenue of 1.4 trillion yuan and a net profit attributable to shareholders of 23.75 billion yuan in the first half of 2025 [1]. - A cash dividend of 0.088 yuan per share was declared, resulting in a dividend payout ratio of 49.7% based on Chinese accounting standards [1]. Shareholder Actions - The board approved a new share buyback plan, with all repurchased shares to be canceled [1]. - The controlling shareholder, Sinopec Group, initiated a significant share buyback plan of 3 billion yuan, acquiring approximately 330 million shares in the first half of the year, with an investment of nearly 1.3 billion yuan [1]. Business Segment Performance - In the upstream segment, Sinopec achieved a record domestic oil and gas equivalent production of 262.81 million barrels, a 2.0% increase year-on-year, with domestic crude oil production at 126.73 million barrels and natural gas production at 736.28 billion cubic feet, up 5.1% [3]. - In refining, the company processed 120 million tons of crude oil and produced 71.4 million tons of refined products, with a 11.5% increase in chemical light oil production [3]. Strategic Initiatives - Sinopec is enhancing its integrated energy service model, focusing on the development of a comprehensive energy service platform that includes oil, gas, hydrogen, and electricity [4]. - The company is prioritizing transformation and upgrading, emphasizing high-end, intelligent, and green development, while also expanding its marketing network to improve brand competitiveness and influence [4].

Core Viewpoint - China Petroleum & Chemical Corporation has obtained a patent for a method and system for continuous preparation of polypropylene, indicating its focus on innovation and technology in the petrochemical sector [1] Company Overview - China Petroleum & Chemical Corporation, established in 2000, is primarily engaged in oil and gas extraction, with a registered capital of approximately 12.17 billion RMB [1] - The company has made investments in 263 enterprises and participated in 5,000 bidding projects, showcasing its extensive operational footprint [1] Intellectual Property - The company holds 5,000 patent records and 45 trademark records, reflecting its commitment to research and development [1] - The newly acquired patent, CN116410381B, was applied for on December 2021, highlighting the company's ongoing innovation efforts [1] Regulatory and Administrative Aspects - China Petroleum & Chemical Corporation possesses 40 administrative licenses, indicating its compliance with regulatory requirements in its operations [1]

Core Viewpoint - The discovery of 1650.25 billion cubic meters of shale gas reserves at the Hongxing Shale Gas Field in Hubei and Chongqing marks the establishment of China's first large-scale Permian shale gas field, which is significant for national energy security [1][7]. Group 1: Shale Gas Reserves - The Hongxing Shale Gas Field has confirmed reserves of 1650.25 billion cubic meters, indicating a major advancement in China's shale gas exploration [1]. - The Permian system, which dates back 299 to 252 million years ago, is recognized as an important reservoir for energy resources like shale gas [1]. Group 2: Exploration and Technology - The thickness of the effective shale gas layer in the Hongxing field is approximately 20 meters, which is below the typical 30 meters threshold, yet it has been deemed valuable due to its higher density [3]. - The project team has developed drilling and completion technologies suitable for thin-layer shale, increasing single well test production from 89,000 cubic meters per day to 323,500 cubic meters per day [5]. Group 3: Strategic Importance - The exploration and development of shale gas are crucial for improving China's energy structure, with China Petroleum & Chemical Corporation (Sinopec) having established multiple significant shale gas fields, including one with a trillion cubic meters and four others with billion cubic meters of reserves [7].

中国石油化工股份有限公司 S I N O P E C C O R P. Forward-looking Statement This presentation and the presentation materials distributed herein 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, reserves and other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results o ...

Market Overview - The Hang Seng Index (HSI) fell by 61 points or 0.2%, closing at 25,104 points, after opening 50 points higher and later dropping to a low of 25,000 points[1] - The Shanghai Composite Index rose by 4 points or 0.1%, closing at 3,771 points, with a total trading volume of 9,977 billion yuan[1] - The S&P 500 dropped by 25 points or 0.4%, closing at 6,370 points, marking its fifth consecutive day of decline[2] Monetary Policy and Economic Indicators - The Hong Kong Monetary Authority provided liquidity of 77 million HKD through the discount window[1] - The People's Bank of China conducted a 253 billion yuan reverse repurchase operation at a steady rate of 1.4%, resulting in a net injection of 124.3 billion yuan for the day[1] - The RMB/USD midpoint was adjusted up by 97 pips to 7.1287[1] Corporate Earnings Highlights - China Power (02380.HK) reported a revenue of 23.858 billion yuan, down 9.9% year-on-year, with a net profit of 2.587 billion yuan, a slight increase of 0.7%[2] - KANLONG (03759.HK) reported a revenue of 6.441 billion yuan, up 14.9% year-on-year, but a net profit decline of 37% to 701 million yuan due to previous year's investment gains[3] - Li Ning (02331.HK) reported a revenue of 14.817 billion yuan, up 3.3%, with a net profit decline of 11% to 1.737 billion yuan[3] - Bilibili (09626.HK) reported a net revenue of 7.338 billion yuan, up 19.8% year-on-year, and turned a profit of 219 million yuan compared to a loss of 609 million yuan in the previous year[4]

Company Announcements - Dameng Data's director and senior vice president is under investigation [1] - Tianxiaxiu plans to issue H-shares and list on the Hong Kong Stock Exchange [1] - Ganneng Energy intends to transfer 65% equity of Ganneng Lingfeng [1] - China Petroleum & Chemical Corporation plans to repurchase shares worth 500 million to 1 billion [1] - Dongbei Group plans to repurchase shares worth 40 million to 80 million [1] Project Investments - Lanshi Heavy Industry plans to invest in the construction of supporting facilities for the Xinjiang Lanshi Industrial Park [1] - Chende International's Dener Xiangjiang Company plans to invest 15.38 million in an ecological power station project [1] - Lanshi Heavy Industry also plans to invest in enhancing nuclear power equipment production capacity in Qingdao [1] Performance Reports - Sany Heavy Industry reported a net profit of 5.216 billion, a year-on-year increase of 46% [2] - Huadian Electric reported a net profit of 1.683 billion, a year-on-year increase of 47.5% [2] - Gree Electric reported a net profit of 1.417 billion, a year-on-year increase of 15.65% [2] - StarNet Ruijie reported a net profit of 212 million, a year-on-year increase of 69.32% [2] Shareholding Changes - Yintai Holdings plans to increase its stake by 1% to 2% [2] - Boji Pharmaceutical's actual controller Wang Tingchun and his concerted party plan to reduce their holdings by no more than 3% [2] Strategic Partnerships - Gree Electric signed a strategic cooperation agreement with Weilan Lithium Core for the joint development of ultra-high energy density battery materials [2] - Zhenghe Industrial plans to raise no more than 818 million through a private placement for agricultural machinery component expansion projects [2]

Group 1 - The State Council approved the "Development Plan for Open Innovation of the Biopharmaceutical Industry Chain in the China (Jiangsu) Pilot Free Trade Zone," aiming to enhance the global competitiveness of the biopharmaceutical sector [2] - In July, the total electricity consumption in China reached 10,226 billion kWh, a year-on-year increase of 8.6%, with significant growth in the first industry at 20.2% [2] - The National Energy Administration reported that from January to July, total electricity consumption accumulated to 58,633 billion kWh, reflecting a year-on-year growth of 4.5% [2] Group 2 - The National Health Commission released guidelines to improve the ear and hearing health service system, emphasizing the establishment of a collaborative network among various healthcare institutions [3] - The pork market has seen a slight decline in prices due to increased supply, with the national average pig-to-grain price dropping below 6:1, entering a warning zone [3] - The National Development and Reform Commission plans to conduct central frozen pork reserve storage to stabilize the pork market [3] Group 3 - The State Administration of Foreign Exchange will pilot green foreign debt business in 16 provinces and cities, encouraging non-financial enterprises to use cross-border financing for green projects [4] - The U.S. and EU have reached an agreement on a trade framework covering various sectors, including agriculture, automotive, and digital trade [4] Group 4 - Kuaishou reported a total revenue of 35 billion yuan in Q2, with an adjusted net profit of 5.6 billion yuan [6] - Digital Vision achieved a net profit of 1.67 million yuan in the first half of the year, marking a year-on-year increase of 2,747.64% [6] - China Petroleum & Chemical Corporation (Sinopec) saw a 39.8% decline in net profit for the first half of the year and plans to distribute a semi-annual cash dividend of 0.088 yuan per share [6] Group 5 - The dairy industry is expected to experience strong profit elasticity due to the ongoing decline in raw milk prices and a potential recovery in beef and live cattle prices [7] - The gaming industry in China showed steady growth in July, driven by new and mature products, indicating a robust growth momentum [8]

Group 1 - As of August 22, the national team appeared as a major shareholder in 14 stocks, holding a total of 3.129 billion shares valued at 23.988 billion yuan [1] - The top three stocks by the number of shares held by the national team are Sinopec, Sany Heavy Industry, and GoerTek, with holdings of 2.641 billion shares, 298 million shares, and 83 million shares respectively [1] - In terms of market value, the national team's largest holdings are also in Sinopec, Sany Heavy Industry, and GoerTek, valued at 14.893 billion yuan, 5.342 billion yuan, and 1.937 billion yuan respectively [1] Group 2 - By the end of the second quarter, the national team was a major shareholder in 61 stocks, holding a total of 8.067 billion shares valued at 98.642 billion yuan [1] - Among these, 45 stocks had holdings exceeding 10 million shares, with Sinopec, Guodian Power, and Huaneng International being the top three by number of shares held, at 2.641 billion shares, 2.531 billion shares, and 467 million shares respectively [1] - The national team's holdings are primarily concentrated in the software, pharmaceutical, and power industries, with 8, 7, and 5 stocks respectively [1]