1

March 31, 2003Hong Kong

China Petroleum & Chemical Corporation Results for the Year Ended December 31, 2002

2

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.

Forward Looking Statement

3

Agenda

2002 Performance Highlights

2002 Review of Operations

2003 Plans and Objectives

4

2002 Performance Highlights

5

Market Overview

Robust economic growth in China, GDP growth of 8.0%

Domestic consumption of refined products increased by 5.1%

Domestic consumption of chemicals increased by 11.1%

Government continues to rationalize market environment, significant improvement in refined oil market environment

WTO 1st year: reduced tariff, open market and increased competition; development in related industries provide new opportunities for Sinopec

Price of crude oil, refined oil products and chemicals bottomed in Jan. and Feb. 2002; gradually recovery since March, 2002

6

14.8

23.225.4

5.9

2.11.4 8.4

2.4

6.4 0.07

-0.7

2.4

-0.9

0.3

-0.1

-5

0

5

10

15

20

25

30

35

40

2000 2001 2002

E&P Refining Marketing Chemicals Others

DPS (RMB)

EPS (RMB)

Net Profit

EBIT

EBITDA

Revenue

00.080.080.08

00.190.190.27

0.316.0816.0319.58

3.628. 2827.3035.51

5.752.5649.7356.29

6.8340.04318.47331.58

2002/2001yoy (%)200220012000

RMB Bn

Continue to Deliver Good Operating Results

Segmental EBIT PerformanceRMB Bn

7

-15.817.721.019.6Cash & Cash Equivalents -

Ending Balance

-5.4-14.6-15.433.0Cash from Financing Activities

10.9-42.7-38.5-64.3Cash from Investing Activities

-2.553.955.329.2Cash from Operating Activities

4.6154.5147.7133.2Shareholders’ Equity

12.275.267.071.0Long-term Debt

-27.635.649.259.1Short-term Debt

2002/2001yoy (%)200220012000

RMB Bn

2002 Balance Sheet and Cash Flow Summary

8

9.99

6.96 7.24

0

2

4

6

8

10

12

2000 2001 2002

26.01

33.01

28.06

13.1

8.4

10.6

15

20

25

30

35

2000 2001 2002

0

2

4

6

8

10

12

14

Debt / Total Capital

EBITDA Interest Coverage

ROCE Change Debt / Total Capital and EBITDA Interest Coverage

ROCE %

Debt / Total Capital %

EBITDAInterest Coverage

Stable Returns, Optimal Leverage

9

Corporate Governance

Strictly comply with the regulatory requirements in the 4 listing locations;

conduct comprehensive and systematic review and revision on corporate

governance documents, including Article of Associations to maintain the

highest standard of corporate governance and integrity

Strengthen decision making process and fully leverage the function of 3

committees (Strategic Com., Auditing Com., Compensation Com.,) under

the Board of Directors

Ensure timely, accurate, complete disclosure and enhance transparency

2nd in Emerging Market Corporate Governance (“Euro-money”)

Top ten Best Corporate Governance in China (“Assets” )

Best Annual Report in China for 2 consecutive years (“CFO Asia”)

Showcase for the establishment of modern corporate governance by CSRC

10

Continued Reform and Restructuring

Improved business structure , more efficient management  

E&P — establish Southern E&P Sub., Shanghai Offshore Oil and Gas Sub.

Refining — establish lubricants subsidiary, implement specialized sales

management

Refining, chemical and marketing — flatten management hierarchy and imp

rove efficiency

Continued restructuring 

Swapped assets with parent company - focused on core assets and busine

sses

Commenced consolidation of A-share listed subsidiaries

11

2002 Review of Operations

12

E&P — Expand Resources

ShengliOilfield

Jungar Basin

Tarim Basin

East China SeaOil & Gas Field

ZhongyuanOilfield

South China Sea

Sichuan Basin

Ordos Basin

• East – significant exploration achievements in burial hills, new and subtle layers in Shengli Oil blocks etc.

• West – Significant discoveries: industrial oil & gas flow at Zhuang # 1 in Jungar basins, good indications of oil & gas at Ku # 1 and Zhong # 1 in Tarim

• South – Explore for new oil rese

rves

13

E&P — Continued Production Growth in Oil & Gas

Note： Data for 2001 and later Includes that of National Star Co.

2.13,8753,7963,118Year End Recoverable Oil & Gas Res

erves (MM boe)

-0.56.126.156.63Lifting Cost (USD/bbl)

-93.520.2309297Newly Added Recoverable Reserves

of Natural Gas (bcf)

18.7375316318Newly Added Recoverable Reserves

of Crude Oil (MM bbls)

9.8178.8162.880.3Natural Gas Production (bcf)

0.2269.8269.2247.4Crude Oil Production (MM bbls)

2002/2001yoy (%)200220012000

14

E&P — Segment Performance

22.428.3 23.8

1.962.12 1.95

10

14

18

22

26

30

2000 2001 2002

1.21.41.61.822.2

Crude Oil Natural Gas

Crude Oil and Natural Gas Realized PriceCrude OilUS$/bbl

Natural GasUS$/cf.

E&P Segment EBITRMB MM

14,787

23,18525,411

0

5,000

10,000

15,000

20,000

25,000

30,000

2000 2001 2002

International Crude Oil Price

USD/bbl

10

15

20

25

30

35

40

Dec-00

Feb-01

Apr-01

Jun-01

Aug-01

Oct-01

Dec-01

Feb-02

Apr-02

Jun-02

Aug-02

Oct-02

Dec-02

Feb-03

WTI 布伦特 辛塔WTI Brent Cinta

Source: Platt's

15

Refining - Productions Adjustments in Line with Market.  Improved Product Structure

27bps92.5092.2392.25Refining Yield (%)

89bps73.2272.3371.57Light Yield (%)

13.25.064.474.90Kerosene Production (MM tonnes)

21.715.0412.3611.98Chemical Feedstock Production (MM tonnes)

-0.537.7437.9337.53Diesel Production (MM tonnes)

4.719.6218.7420.15Gasoline Production (MM tonnes)

140bps79.377.981.0Refining Utilization Rate (%)

3.5105.01101.42105.48Crude Oil Processed (MM tonnes)

2002/2001

yoy (%)200220012000

3.920.0119.2513.82Sour Crude Oil Processed (MM tonnes)

16

Refining — Segment Performance

3.62 3.57

3.95

2.032.07

2.14

1

2

3

4

5

2000 2001 2002

1.5

2

2.5

Refining Margin Cash Operating Cost

1,394

5,922

2,106

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2000 2001 2002

Refining Margin / Cash Operating Cost (USD/bbl)

Refining Segment EBITRMB MM

17

Marketing — Optimizing Marketing Network and Expanding Retail and Distribution Volume

5.91,5601,4731,402Throughput Per Station (tonne / station)

-1.44,1274,1845,234 Franchised Gas Stations

-0.2624,00024,06220,259 Owned and Operated Gas Stations

-0.428,12728,24625,493Total Gas Stations

300bps6561Share in Principal Retail Markets (%)

8.512.6311.64NA Distribution (MM tonnes)

14.134.7330.4323.94 Retail (MM tonnes)

3.570.0967.7467.69Domestic Sales Volume of Refined Produ

cts (MM tonnes)

2002/2001

yoy (%)200220012000

68

-11.522.7325.6743.75 Wholesale (MM tonnes)

18

Marketing — Segment Performance

2000

3000

4000

Jan Mar May Jul Sep Nov

2001 2002

2000

3000

4000

Jan Mar May Jul Sep Nov

2001 2002

RON 90# Gasoline Guidance PriceRMB/Tonne

0# Diesel Guidance Price RMB/Tonne

6,358

2,443

8,401

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

2000 2001 2002

EBIT Wholesale Retail Distribution

Marketing Segment EBIT AnalysisRMB MM

RMB/Tonne 2000 2001 2002

Marketing Cash Operating Cost

181 163 166

19

Chemicals — Full-load Production in Line with Market

6.316.915.97.9B2B Sales (RMB Bn)

23.3402326283 Incl. Differential Fiber

38.71,8471,3321,280 Incl. Performance Compound

12.21,1531,0281,068Synthetic Fiber

6.53,8343,5983,795Monomers & Polymers for Synthetic Fiber

15.0458398317Synthetic Rubber

25.04,0053,2043,183Synthetic Resin

26.22,7162,1532,165Ethylene

2002/2001 yoy (%)200220012000('000 tonnes )

20

-1000

100200300400500600700800900

1000

Jan

-93

Jan

-94

Jan

-95

Jan

-96

Jan

-97

Jan

-98

Jan

-99

Jan

-00

Jan

-01

Jan

-02

Jan

-03

LDPE - Naphtha Spread PP - Naphtha Spread

Chemicals — Segment Performance

Ethylene Capacity vs Cash Operating Cost

Chemicals Price Spread(From 1993 to Jan 2003)

2,437

72-758

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

2000 2001 2002

Chemicals Segment EBIT

(RMB MM)

1,9852,195

2,795

150.28160.06183.17

1000

1500

2000

2500

3000

2000 2001 2002

0

50

100

150

200

Ethylene CapacityCash Operating Cost

’000 Tonnes USD/Tonne

USD/Tonne

21

Cost Reduction

Reduce procurement cost in large quantity purchase of raw materials

Reduce energy and materials consumption

Control expenses

Head count reduction of some 25 thousands.

2002 Cost Reduction ResultRMB MM

702

698

621

504

E&P Refining Marketing Chemicals

Total RMB 2.525Bn

22

Prudent Investment to Enhance Return

0

10

20

30

40

50

60

70

2000A 2001A 2002A

E&P Refining Marketing Chemicals Others

• E & P –Rmb20.2b to increase in reserves and production

• Refining – Rmb6.5b to increase clean fuel production capacity

• Marketing – Rmb 7.0b to acquire, build and upgrade retail stations, storage and transport facilities

• Chemicals – Rmb7.3b to increase production capacity, e.g. ethylene

• Others – Rmb 545m to improve IT and other general construction

Capex in the Past 3 Years(RMB Bn)

2002 Total Capex of Rmb41.6b.  Breakdown as Follows:

23

• 900 ktpa ethylene project JV in Shanghai commenced construction, expected completion in 2005

Smooth Progress on JV Projects

Nanjing

• 600 ktpa ethylene project JV commenced construction, expected completion in 2004

• Dongting coal gasification JV commenced construction, expected completion in 2005

• Feasibility study for Fujian integrated petrochemical project approved

Retail JV Programs

on TrackFujian

Shanghai

Dongting

24

2003 Plans and Objectives

25

2003 Market Outlook

Opportunities

• The Chinese economy will continue to be robust with GDP growth forecasted at a minimum 7.0%, growth in refined oil products and chemical products at a minimum rates of 4.0% and 10.0% respectively.

• International crude oil price remains at a relatively high level

• Refining margin maintains relatively good level

• Chemical prices rebound as the industry has bottomed out in the chemical cycle

• The Chinese government continues to promote healthy competition in refined products market, leading to a better operating environment

Challenges

• Sluggish International GDP growth

• Increasing volatility of crude oil, refined petroleum and chemicals

• Reduced tariffs and increasing competition due to continued effects of China's entry into the WTO

26

2003 Production Plan

2002 2003E2003E/2002

Change

Crude Oil Production (mm bbl) 269.8 270.5 0.3

Natural Gas Production (bcf) 178.8 187.1 4.6

Refining Throughput (MM tonnes)

105.01 110.92 5.6

Domestic Sales of Refined Oil Products (MM tonnes)

70.09 73.0 4.2

Retail (MM tonnes) 34.73 37.5 8.0

Ethylene Production (’000 tonnes) 2,716 3,050 12.3

27

2003 Capex Plan

• Increase new oil and gas replacement resources

• Further enhance quality of refined oil products

• Improve marketing network

• Construct crude oil pipeline and start to construct refined oil products pipeline

• Expand and revamp chemicals capacity

• Develop information system

18

6.34

5

7.64

0.62

E&P Refining MarketingChemicals Others

Total RMB 37.6Bn

RMB BnGoals:

28

2000 2001 2002 2003E

E&P Lifting Cost

(USD/bbl) (Note)

6.63 6.15 6.12 6.04

Refining Cash Operating

Cost (USD/bbl)

2.14 2.07 2.03 2.00

Ethylene Cash Operating

Cost (USD/tonne)

184 160 150 148

Marketing Cash

Operating Cost

(RMB/tonne)

181 163 166 160

2003 Cost Reduction Plan

600

500

4001000

E&P Refining

Marketing Chemicals

2003 Cost Reduction PlanRMB MM

Note： Data for 2000 does not include that of National Star Co.

Total RMB2.5Bn

29

Conclusion

Healthy and stable growth of China’s economy provides a favorable environment for Sinopec’s development

Integrated business structure provides strong anti-risk capability for industrial cycles

Recovering refinery margins, an upturn in the petrochemical cycle and an improvement in the refined oil products market provide a positive environment for Sinopec's midstream and downstream activities

Active and practical development strategies and flexible operating tactics

Healthy financial structure; sovereign-capped credit rating of BBB by Standard and Poor's

Good corporate governance and stable dividends payout

Generate Attractive Investment Return

30

For Further Information

http://www.Sinopec.com

Investor RelationsTel: (8610) 64990066Fax: (8610) 64990067

Email: ir@Sinopec.com

Media InquiriesTel: (8610) 64990064Fax: (8610) 64990093

Email: media@Sinopec.com