Financial Highlights:    --  In accordance with the PRC Accounting Standards for Business       Enterprises ("ASBE"), the Company's turnover was RMB 534.025 billion,       down by 26.9% over the same period in 2008. Net profit attributed to       equity holders of the company was RMB 33.19 billion, representing an       increase of 332.6% over the same period of previous year.  Basic       earnings per share was RMB 0.383, rising by 332.6% year-on-year.     --  In accordance with the International Financial Reporting Standards       (IFRS), the Company's turnover, other operating revenues and other       income amounted to RMB 534.025 billion, representing a decrease of       30.2%.  Net profit attributable to equity holders of the Company was       RMB 33.246 billion, up by 332.8% compared to the same period last       year. Basic earnings per share was RMB 0.383, up by 332.8%       year-on-year.     --  The Board of Directors proposed a half year dividend of RMB 0.07 per       share with total dividend amount reaching RMB 6.069 billion.    Business Highlights    --  The Exploration and Production Segment achieved steady growth in its       oil and gas production, however, its operating profit was RMB 5.5       billion, down by 79.7% compared with the same period last year.  This       decline mainly was due to the decrease of crude price in the reporting       period.     --  The Refining Segment recorded an operating profit of RMB 19.9 billion,       as a result of continuous optimization of crude sources and resultant       reduction in crude cost, as well as implementation of domestic pricing       mechanism and reform on levies and charges on road transportation.     --  The Marketing and Distribution Segment generated an operating profit       of RMB12.5 billion, representing a year-on-year decrease of 44.3%.        This decline was mainly attributed to weakened domestic demand on oil       products in the reporting period and the implementation of domestic       pricing mechanism which narrowed gross margin of oil products.     --  The Chemicals Segment recorded an operating profit of RMB9.8 billion,       representing an increase of 115.3% over the first half of 2008 due to       the market development initiatives and the drop in input cost.   

Mr. Su Shulin, Chairman of Sinopec, commented: "China's petroleum and petrochemical market was confronted with challenges of declining demand and increased competition in the first half this year, in light of the global financial crisis. Responding to such operating environment, we have implemented a number of adjustments to our business strategy which was driven by market requirements and centered on profitability. We also took measures to further develop market potentials, improve production efficiency, and management effectiveness. "

"The government's fiscal stimulus package has yielded positive results on the national economy, and we saw both demand and pricing of petroleum and petrochemical products starting to recover recently. As a result, our monthly operating performance began to pick up. "

"For the first half of 2009, oil and gas equivalent output grew steadily. Refining business was turned profitable capturing the opportunity of new pricing mechanism and the reform on levies and charges of road transportation. Chemicals business had continued to improve its capability in defending against market risks. The marketing and distribution business withstood severe operating challenges."

Mr. Su Shulin continued, "The substantial increase in profit for the first half of 2009 is primarily a reflection of weaker comparatives from the same period of last year. In early 2008, crude prices reached historic highs, but Chinese domestic fuel prices were tightly controlled, to the extent that retail prices were at some stages lower than the underlying crude price. During this period, local refinery businesses suffered huge losses and there was a great shortage in inventory. In order to ensuring effective supply to the domestic market, Sinopec invested heavily to secure crude resources from multiple overseas channels and improve logistics systems. Thus, the company incurred significant operating losses during that period. "

"With the implementation of the new pricing mechanism and reform of relevant levies and charges on road transportation in 2009, domestic fuel prices were increased. Yet it did not reach to a level that fully reflects crude cost due to considerations of challenging domestic economic situations and the resultant impact on consumers and enterprises, as well as the influence of the international financial crisis. Leveraging the company's advantage in scale and cost-efficiency, as well as its integrated business model, Sinopec turned around its profitability in the first half of 2009."

   PRINCIPAL FINANCIAL DATA AND INDICATORS      FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH THE PRC   ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES ("ASBE")                                                                Changes                                      Six-month periods       over the same                                         ended 30 June        period of the                                     2009           2008        preceding                                     RMB             RMB           year   Items                           millions      millions           (%)   Operating profit/(loss)          43,999        (26,023)            -   Profit before taxation           43,768          7,610         475.1   Net profit attributable to    equity shareholders of the    Company                         33,190          7,673         332.6   Net profit before extraordinary    gain and loss                   33,285          8,351         298.6   Basic earnings per share (RMB)    0.383          0.088         332.6   Net cash flow from operating    activities                      82,370          5,994       1,274.2                                                                 Changes                            At 30 June      At 31 December   from the end                              2009                2008       of last year   Items                  RMB millions        RMB millions        (%)   Total assets              816,342            763,297           6.9   Total equity attributable    to equity shareholders of    the Company              354,494            329,300           7.7   Net assets per share (RMB)    (Fully diluted)            4.089              3.798           7.7   Adjusted net assets per    share (RMB)                4.002              3.706           8.0      FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS PREPARED IN    ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS")                                                                   Changes                                Six-month periods             over the same                                  ended 30 June                period of the                             2009              2008           preceding year   Items                 RMB millions      RMB millions              (%)   Operating profit         46,182            6,837                 575.5   Profit attributable to    equity shareholders of    the Company             33,246            7,682                 332.8   Return on capital    employed (%) Note         6.39             1.24                  5.15                                                            percentage points   Basic earnings per share    (RMB)                    0.383            0.089                 332.8   Diluted earnings per    share (RMB)              0.381            0.057                 568.4   Net cash flow generated    from operating activities    per share (RMB)          0.912            0.028               3,204.6    Note: Return on capital employed = operating profit x (1 - income tax    rate)/capital employed                                                                       Changes                              At 30 June   At 31 December       from the end                                 2009            2008            of last year   Items                    RMB millions     RMB millions             (%)   Total assets                825,201        779,172                 5.9   Total equity attributable    to equity shareholders of    the Company                353,139        327,889                 7.7   Net assets per share (RMB)    4.073          3.782                 7.7   Adjusted net assets per    share (RMB)                  3.987          3.690                 8.0     The following table sets forth the operating revenues, operating expenses   and operating profit/(loss) by each segment before elimination of the   inter-segment transactions for the periods indicated, and the changes made   in the first half of 2009 compared with the first half of 2008.