SNP.L Regulatory News (SNP)

26 Aug 2008 07:00



(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code:386)

Announcement of the 2008 Interim Results

§1 Important Notice

1.1 The Board of Directors and the Supervisory Board of China Petroleum & Chemical Corporation ("Sinopec Corp.") and its directors, supervisors and senior management warrant that there are no material omissions, or misrepresentations or misleading statements contained in this announcement and severally and jointly accept full responsibility for the authenticity, accuracy and completeness of the information contained in this announcement.

This announcement is a summary of the interim report. The entire report is also contained in the website of the Shanghai Stock Exchange (www.sse.com.cn) and Sinopec Corp. (www.sinopec.com). The investors should read the interim report for more details. 

1.2 No Director, supervisors and senior management has any doubt as to, or the inability to warrant, the truthfulness, accuracy and completeness of the interim report. 

1.3 Mr. Shi Wanpeng, Mr. Li Deshui, Mr. Yao Zhongmin and Mr. Fan Yifei, Directors of Sinopec Corp., did not attend the meeting of the Board for reasons of official duties. Mr. Shi Wanpeng and Mr. Li Deshui, Director of Sinopec Corp., authorised Mr. Liu Zhongli and Mr. Yao Zhongmin and Mr. Fan Yifei, Directors of Sinopec Corp., authorised Mr. Wang Tianpu to vote on their behalf in respect of the resolutions put forward in the meeting of the Board.

1.4 The financial statements for the six-month period ended 30 June 2008 of Sinopec Corp. and its subsidiaries ("the Company") prepared in accordance with the PRC Accounting Standards for Business Enterprises ("ASBE"), and International Financial Reporting Standards ("IFRS") have been audited by KPMG Huazhen and KPMG, respectively, and both firms have issued standard unqualified opinions on the financial statements.

1.5 There is no occupancy of non-operating funds by the substantial shareholders of Sinopec Corp.

1.6 Mr. Su Shulin, Chairman of the Board, Mr. Wang Tianpu, President, Mr. Dai Houliang, Director, Senior Vice President and Chief Financial Officer and Mr. Liu Yun, Head of the Accounting Department warrant the authenticity and completeness of the financical statements contained in this announcement.

  §2 Basic Information of Sinopec Corp.

2.1 Basic Information of Sinopec Corp.

	SINOPEC	SINOPEC	SINOPEC
Stock name	CORP	CORP	CORP	中國石化
Stock code	386	SNP	SNP	600028
Place of listing	Hong Kong	New York Stock	London Stock	Shanghai Stock
	Stock Exchange	Exchange	Exchange	Exchange
	Authorized Representatives		Secretary to the  Board of Directors	Representative on Securities Matters
Name	Mr. Wang	Mr. Chen Ge	Mr. Chen Ge	Mr. Huang
	Tianpu			Wensheng
Address	6A Huixindong Street, Chaoyang District, Beijing, PRC
Tel	64990060	64990060	64990060	64990060
Fax	64990022	64990022	64990022	64990022
E-mail	ir@sinopec.com/media@sinopec.com

2.2 Principal accounting data and financial indicators

2.2.1 Principal accounting data and financial indicators for the first half of 2008 prepared in accordance with ASBE

2.2.1.1  Principal accounting data and financial indicators

	At 30 June	At 31 December	Changes from the
	2008	2007	end of last year
Items	RMB millions	RMB millions	(%)
Total assets	820,556	718,572	14.2
Shareholders' equity attributable to equity
shareholders of the Company	305,471	300,949	1.5
Net assets per share (RMB) (Fully diluted)	3.523	3.471	1.5
Adjusted net assets per share (RMB)	3.437	3.391	1.4
	Six-month periods ended 30 June		Changes over the
			same period of
	2008	2007	the preceding year
Items	RMB millions	RMB millions	(%)
Operating (loss) / profit	(23,784)	53,285	(144.6)
Profit before taxation	9,516	52,701	(81.9)
Net profit attributable to equity shareholders  of the Company
	9,339	35,110	(73.4)
Net (loss) / profit before extraordinary gain and loss	(17,445)	34,924	(150.0)
Return on net assets (%)	3.06	12.31	(9.25)
			percentage points
Basic earnings per share (RMB)	0.108	0.405	(73.4)
Basic (loss) / earnings per share before extraordinary gain and loss (RMB)
	(0.201)	0.403	(150.0)
Diluted earnings per share (RMB)	0.076	0.405	(81.0)
Net cash flow from operating activities	5,986	64,700	(90.7)
Net cash flow from operating activities   per share (RMB)
	0.069	0.746	(90.7)

2.2.1.2 Extraordinary items

√ applicable □ inapplicable

Extraordinary items and corresponding amounts:

	Six-month period
	ended 30 June 2008
	(Income)/expense
Items	RMB millions
Loss on disposal of fixed assets	23
Employee reduction expenses	199
Donations	77
Gain on disposal of investments	(198)
Other non-operating income and expenses	2
Written back of provisions for impairment losses made
in previous years	(159)
Grants	(33,402)
Subtotal	(33,458)
Tax effect	5,572
Total	(27,886)
Attributable to:Equity shareholders of the Company	(26,784)
Minority interests	(1,102)

2.2.2 Principal accounting data and financial indicators of the Company for the first half of 2008 from the financial statements prepared in accordance with IFRS

	Six-month periods ended 30 June		Changes over the same  period of the  preceding year
	2008	2007
Items	RMB millions	RMB millions	(%)
Operating profit	7,222	53,584	(86.5)
Profit attributable to equity
shareholders of the Company	8,255	36,375	(77.3)
Return on capital employed (%) Note	1.33	8.21	(6.88)
			percentage points
Basic earnings per share (RMB)	0.095	0.420	(77.3)
Diluted earnings per share (RMB)	0.064	0.420	(84.8)
Net cash flow generated from   operating activities		62,295
	2,640		(95.8)
Net cash flow generated from   operating activities per share   (RMB)
	0.030	0.718	(95.8)

Note: Return on capital employed = operating profit x (1 - income tax rate)/capital employed

			Changes from
	At 30 June	At 31 December	the end of
	2008	2007	last year
Items	RMB millions	RMB millions	(%)
Total assets	838,469	732,725	14.4
Total equity attributable to
equity shareholders
of the Company	310,871	307,433	1.1
Net assets per share (RMB)	3.586	3.546	1.1
Adjusted net assets per share   (RMB)
	3.499	3.466	1.0

2.2.3 Differences between financial statements prepared under ASBE and IFRS

√ applicable □ inapplicable

2.2.3.1 Analysis of effects of major differences between the net profit under ASBE and the profit for the period under IFRS

	Six-month periods ended 30 June
	2008	2007
Items	RMB millions	RMB millions
Net profit under ASBE	9,415	36,574
Adjustments:
Oil and gas properties	(1,334)	91
Reduced amortisation on revaluation
of land use rights	15	15
Effects of the above adjustments on taxation	237	1,162
	－－－－－－－－	－－－－－－－－
Profit for the period under IFRS	8,333	37,842
	＝＝＝＝＝＝＝＝	＝＝＝＝＝＝＝＝

2.2.3.2 Analysis of effects of major differences between the shareholders' funds under ASBE and total equity under IFRS:

	At 30 June	At 31 December
	2008	2007
Items	RMB millions	RMB millions
Shareholders' equity under ASBE	331,299	326,347
Adjustments:
Oil and gas properties	10,005	11,339
Revaluation of land use rights	(1,027)	(1,042)
Effects of the above adjustments on taxation	(3,649)	(3,886)
	－－－－－－－－	－－－－－－－－
Total equity under IFRS	336,628	332,758
	＝＝＝＝＝＝＝＝	＝＝＝＝＝＝＝＝

§3 Changes in share capital and shareholdings of the principal shareholders

3.1 Statement of changes in share capital

□ applicable √ inapplicable

3.2 Top ten shareholders and shareholders of shares without selling restrictions

As at 30 June 2008, there were a total of 1,290,016 shareholders of Sinopec Corp., of which 1,283,242 were holders of A Shares and 6,774 were holders of H Shares. The public float of Sinopec Corp. satisfied the minimum requirements under The Rules Governing The Listing of Securities on The Stock Exchange of Hong Kong Limited ("Hong Kong Listing Rules").

Top ten shareholders Unit: 1,000 Shares

		As a percentage	Number of
		of total	shares held	Number
		shares	at the end	of shares	Number of
	Nature of	at the end of	of reporting	with selling	pledges or
Name of Shareholders	shareholders	reporting period	period	restrictions	lock-ups
		(%)
China Petrochemical Corporation	State-owned shares	75.84	65,758,044	61,422,922	0
HKSCC (Nominees) Limited	H shares	19.26	16,700,144	0	N/A
Guotai Junan Securities Co., Ltd	A Shares	0.44	377,906	0	38,230
E Fund 50 Stock Index
Investment Fund	A Shares	0.12	104,190	0	0
Bosera Thematic Sector
Stock Investment Fund	A Shares	0.11	95,519	0	0
Huabao Xingye Selected Sector
Stock Investment Fund	A Shares	0.06	53,998	0	0
Shanghai Stock Exchange 50 Tradable
Open-ended Securities Index
Investment Fund	A Shares	0.05	46,797	0	0
Tongde Securities Investment Fund	A Shares	0.05	45,606	0	0
National Social Security Fund
106 Portfolio	A Shares	0.05	40,000	0	0
Shanghai Stock Exchange Dividend
Tradable Open-ended Securities
Index Investment Fund	A Shares	0.04	34,890	0	0

Top ten shareholders of shares   without selling restrictions	Unit: 1,000 shares
	Number of	Type of
Name of Shareholders	shares held	shares
HKSCC (Nominees) Limited	16,700,144	H shares
China Petrochemical Corporation	4,335,122	A Shares
Guotai Junan Securities Co., Ltd.	377,906	A Shares
E Fund 50 Stock Index Investment Fund	104,190	A Shares
Bosera Thematic Sector Stock Investment Fund	95,519	A Shares
Huabao Xingye Selected Sector Stock Investment Fund	53,998	A Shares
Shanghai Stock Exchange 50 Tradable
Open-ended Securities Index Investment Fund	46,797	A Shares
Tongde Securities Investment Fund	45,606	A Shares
National Social Security Fund 106 Portfolio	40,000	A Shares
Shanghai Stock Exchange Dividend Tradable
Open-ended Securities Index Investment Fund	34,890	A Shares

Statement on the connected relationship or activity in concert among the aforementioned shareholders:

We are not aware of any connection or activities in concert among the top ten shareholders of floating stock.

3.3 Changes in the controlling shareholders and the effective controllers in the reporting period

□ applicable √ inapplicable

§4. Information about the directors, supervisors and senior management

4.1 The engagement or dismissal of Directors, Supervisors and Other Members of the Senior Management

□ applicable √ inapplicable

4.2 Information about the changes in the shares held by the directors, supervisors and senior management

□ applicable √ inapplicable

As at 30 June 2008, none of the directors, supervisors or senior management of Sinopec Corp. had any interest in any shares of Sinopec Corp.

During the reporting period, none of Sinopec Corp.'s directors, supervisors or senior management or any of their respective associates had any interests or short positions in any shares, debentures or related shares of Sinopec Corp. or its associated corporations (as defined in Part XV of the Securities and Futures Ordinance) which were required to be notified to Sinopec Corp. and the Hong Kong Stock Exchange pursuant to Division 7 and 8 of Part XV of the Securities and Futures Ordinance or which were required pursuant to section 352 of the Securities and Futures Ordinance to be entered in the register referred to therein, or which were required to be notified to Sinopec Corp. and the Hong Kong Stock Exchange pursuant to the Model Code for Securities Transactions Entered by Directors of Listed Companies as specified in the Listing Rules of The Stock Exchange of Hong Kong Limited (including those interests and short positions that are deemed to be such, or are regarded to be owned in accordance with the relative provisions under the Securities and Futures Ordinance). All of the directors of Sinopec Corp. confirmed that they have complied with the Model Code for Securities Transactions.

§5. Business Review and Prospects and Management's Discussion and Analysis

5.1 Business Review

In the first half of 2008, the Chinese economy continued to grow steadily and rapidly, with a GDP growth rate of 10.4%. Apparent domestic consumption of oil products (inclusive of gasoline, diesel and kerosene) and ethylene equivalent consumption increased by 13.9% and 2.5% respectively over the same period last year.

In the first half of 2008, confronted with complicated and severe business conditions featured by soaring crude oil prices and tight control on price of oil products in domestic market, the Company managed to increase oil and gas production, speed up structure adjustment, and took a variety of measures to increase the supply of oil products and made efforts to guarantee the domestic market supply of oil products through optimised production and operation activities, improved management, increased profitability through taping potentials, conserving energy and reducing emissions, and realised steady growth in oil and gas production, refinery throughput, sales volume of oil products and the production of major chemical products.

5.1.1 Production and Operations

(1) Exploration and Production Segment

In the first half of 2008, the international crude oil prices soared, and the average price of Platt's Brent spot price was US$ 109.14/barrel, increased by 72.53% over the same period last year.

In exploration, the Company made new progress in petroleum exploration in Tahe oil field, in natural gas exploration in the surrounding areas of Puguang gas field in northeastern Sichuan, western Sichuan and the southern area in Songlao basin, and in the exploration of concealed oil and natural gas reserves in the matured fields in the east of China.

With respect to development, through such measures as strengthening the comprehensive adjustments in the matured fields, optimising the construction process of production capacity in the new blocks and enhancing the development of low-grade reserves and speeding up the pace of increasing recovery rate, the Company has yielded marked achievements in increasing both oil and gas reserves and production. Moreover, the construction of Sichuan-East China Gas project has been progressing smoothly. In the first half of this year, the Company produced 147.38 million barrels of crude oil, increased by 2.4%, and produced 144.2 billion cubic feet of natural gas, increased by 3.3% over the same period last year.

Summary of Operations of Exploration and Production Segment

	Six-month periods ended 30 June
			Changes
	2008	2007	(%)
Crude oil production (mmbbls)	147.38	143.88	2.4
Natural gas production (bcf)	144.2	139.6	3.3
Newly added proved reserve of
crude oil (mmbbls)	158.74	147.88	7.3
Newly added proved reserve of
natural gas (bcf)	186.9	158.6	17.8
	At 30	At 31
	June	December	Changes
	2008	2007	(%)
Proved reserve of crude oil (mmbbls)	3,035	3,024	0.4
Proved reserve of natural gas (bcf)	6,373.6	6,330.8	0.7

Note: Crude oil production is converted at 1 tonne = 7.1 barrels, and natural gas production is converted at 1 cubic meter = 35.31 cubic feet.

(2) Refining Segment

In the first half of 2008, in order to meet market demand, the Company made efforts to keep refinery facilities running safely and at full capacity and increased the output of oil products. It also optimised crude oil resources and tried to reduce the purchasing cost of crude oil, reinforced structural adjustment of products mix and increased the production of high value-added products such as high-grade gasoline, vigorously promoted the sales of petroleum products other than gasoline, diesel or kerosene, produced clean oil products meeting national IV standard. Being a cooperation partner of 2008 Beijing Olympic Games, the Company provides oil products in major hosting cities. In the first half of 2008, the refinery throughput increased by 6.7% over the same period last year, and the output of oil products increased by 10.1%, among which, gasoline had a 7.7% increase and diesel with an increase of 13.0% over the same period last year.

Summary of Operations of Refining Segment

			Six-month periods ended 30 June
					Changes
			2008	2007	(%)
Refinery throughput (million tonnes)* Gasoline, diesel and kerosene production			84.25	78.94	6.7
(million tonnes)			51.52	46.80	10.1
Of which:	Gasoline (million tonnes)		13.78	12.79	7.7
	Diesel (million tonnes)		33.80	29.91	13.0
	Kerosene, including jet fuel
	(million tonnes)		3.94	4.10	(3.9)
Light chemical feedstock   (million tonnes)
			12.07	12.26	(1.5)
Light products yield (%)			74.68	73.93	0.75
					percentage
					point
Refinery yield (%)			93.87	93.73	0.14
					percentage
					point

* Refinery throughput is converted at 1 tonne = 7.35 barrels.

(3) Marketing and Distribution Segment

In the first half of 2008, the Company constantly optimise its sales networks, intensified awareness of service and improved service quality, collected resources through various channels and timely arranged the imports of oil products, optimised the allocation and transport of oil products, reduced transportation cost and managed to guarantee sufficient supply of oil products in the domestic market and actively promoted sales of oil products with high octane number. The total sales volume of refined oil products reached 63 million tonnes, increased by 8.8% compared with that of the same period last year, among which retail had a 19.2% increase than that of the same period last year. In its coping with the rare snow storm in South China as well as the earthquake in Wenchuan, the Company promptly initiated its contingency plan, made all-out efforts to guarantee the supply of refined oil products, and adopted such means as movable gas-filling and manual delivery of oil products, thus ensuring the supply of refined oil products in the disaster-stricken areas.

Summary of Operations of Marketing and Distribution Segment

			Six-month periods ended 30 June
					Changes
			2008	2007	(%)
Total domestic sales volume of refined
oil products (million tonnes)			63.02	57.92	8.8
Of which:	Retail volume
	(million tonnes)		42.91	36.01	19.2
	Direct sales volume
	(million tonnes)		10.37	10.15	2.2
	Wholesale volume
	(million tonnes)		9.73	11.77	(17.3)
	Total number of service
	stations		29,188	28,898	1.0
Of which:	Number of company-
	operated service
	stations		28,551	28,153	1.4
	Number of franchised
	service stations		637	745	(14.5)
Average annual throughput per station
(tonne)			3,006	2,558	17.5

(4) Chemicals Segment

In the first half of 2008, the Company took the advantage of concentrated sales and made great efforts to expand the chemical market, coped with the market changes in a flexible way and organised the production and sales of products with market appeals, endeavored to increase profits, improved management, consolidated the raw material optimisation and product structure optimisation, vigorously promoted new technologies and tried hard to increase the output of high added-value products. Ethylene production reached 3.307 million tonnes, a 1.0% increase on a year-on-year basis, and the production of synthetic resin reached 4.923 million tonnes, an increase of 3.1% over the same period last year. Synthetic rubber production reached 0.46 million tonnes, increased by 27.8% over the same period last year

Summary of Production of  Major Chemical Products			Unit: 1000 tonnes
	Six-month periods ended 30 June
			Changes
	2008	2007	(%)
Ethylene	3,307	3,273	1.0
Synthetic resin	4,923	4,774	3.1
Synthetic fiber monomer and polymer	3,768	3,938	(4.3)
Synthetic fiber	681	721	(5.5)
Synthetic rubber	460	360	27.8
Urea	685	813	(15.7)

Note: 100% production of two ethylene joint ventures, namely BASF-YPC and SHANGHAI SECCO was included.

5.1.2 Cost Saving

In the first half of 2008, the Company took various measures to reduce costs, including: fully leveraging the modern logistics system to optimise resources allocation and reduce transportation costs, tapping the potentials of refining capacities for lower quality crude, reducing purchasing costs of crude oil, optimising operation of facilities and reducing energy and material consumption. In the first half of 2008, the Company effectively saved RMB 1.703 billion in cost. Of the total cost saved, the exploration and production segment, the refining segment, the marketing and distribution segment and the chemicals segment achieved cost saving of RMB 577 million, RMB 341 million, RMB 315 million and RMB 470 million respectively.

5.1.3 Energy Saving and Emission Reduction

In the first half of 2008, the Company made remarkable achievements in energy saving and emission reduction. We established SINOPEC Energy-saving Monitoring Center and Energy-saving Technical Service Center, introduced reporting system on energy-saving activities, initiated benchmarking activities for assessing energy efficiencies within the industry, continued to conduct the publicising and education work of energy-saving and emission reduction, vigorously promoted such advanced energy-saving technologies as pulsed electric desalting, and aromatics extraction of pygas. In the first half of this year, our energy intensity, industrial water consumption and COD in discharged waste water dropped by 6.6%, 11.8% and 15.0% respectively over the same period last year.

5.1.4 Capital Expenditures

In the first half of 2008, the Company's total capital expenditure was RMB 36.536 billion. Among which, capital expenditure for exploration and development was RMB 20.981 billion. The newly-built production capacity of crude oil and natural gas was 2.79 million tonnes per year and 480 million cubic-meters per year respectively. The capital expenditure for refining segment was RMB 3.849 billion, green-field and expansion refinery projects in Qingdao, Gaoqiao, Wuhan and Luoyang have been put into production. Caofeidian crude oil jetty project has realised mechanical completion. The capital expenditure in chemicals segment was RMB 5.907 billion. Yangzi Petrochemicals Butadiene project with a capacity of 100,000 tonnes per year was put into operation, and Tianjin, Zhenhai ethylene and Jinling PX project are underway as scheduled. The capital expenditure in marketing and distribution segment was RMB 4.548 billion. The sales network of oil products was furthered optimised and 195 service stations were newly built. The capital expenditure for corporate and others amounted to RMB 1.251 billion.

5.2 Principal Operations categorised by business segments

The following table sets out the principal operations categorised by business segments and the details of the connected transactions, including income from principal operations and cost of sales for each business segment, extracted from the Company's financial statements prepared under ASBE:

				Increase/	Increase/
				decrease	decrease
				of Income	of Cost
				from principal	of principal	Increase/
	Income from	Cost of		operations	operations	decrease
	principal	principal	Gross profit	on a year-	on a year-	of gross
	operations	operations	margin	on-year basis	on-year basis	profit margin
Segment	(RMB millions)	(RMB millions)	(%)Note	(%)	(%)	(%)
Exploration and production	96,659	43,341	29.5	54.1	18.9	(6.7)
Refinery	392,200	460,239	(18.8)	27.4	57.8	(20.7)
Marketing and distribution	390,939	373,425	4.3	26.7	28.4	(1.3)
Chemicals	132,005	127,389	3.4	14.1	19.5	(4.1)
Corporate and others	411,237	411,873	(0.2)	103.2	103.4	(0.1)
Elimination of
inter segment sales	(688,257)	(685,177)	N/A	N/A	N/A	N/A
	－－－－	－－－－－	－－－－	－－－－－	－－－－	－－－－－
Total	734,783	731,090	(3.4)	23.3	47.6	(10.4)
	＝＝＝＝	＝＝＝＝＝	＝＝＝＝	＝＝＝＝＝	＝＝＝＝	＝＝＝＝＝

Note: Gross profit margin= (income from principal operations - cost of principal operations, taxes and surcharges) / income from principal operations

The total amount of connected transactions of products sold and the services provided by the Company to Sinopec Group Company was RMB42.132 billion in this reporting period.

5.3 Principal operations in different regions

□ applicable √ inapplicable

5.4 Operations of associate companies

□ applicable √ inapplicable

5.5 Reasons of material changes in the principal operations and their structure

□ applicable √ inapplicable

5.6 Reasons of material changes in the principal operations' earning power (gross profit ratio) as compared to the preceding year

□ applicable √ inapplicable

5.7 Reasons of changes in profit composition as compared to that in the preceding year

√ applicable □ inapplicable

Part of the financial information discussed below is extracted from the audited financial statements prepared in accordance with IFRS.

In the first half of 2008, the Company's turnover, other operating revenues and other income were RMB 768.2 billion, and the operating profit was RMB 7.2 billion, representing an increase of 36.2%, and a decrease of 86.5% respectively over the same period of 2007. This was mainly because of the sharp increase in crude oil prices which resulted in significant losses in the Company's refining business.

5.7.1 Turnover, other operating revenues and other income

In the first half of 2008, the Company's turnover, other operating revenues and other income were RMB 768.2 billion, of which turnover was RMB 722.4 billion, representing an increase of 31.0% over the first half of 2007. This was mainly due to the increase in prices of crude oil, refined oil and chemical products and the Company's efforts in expanding the sales volume of petroleum and petrochemical products and optimized the sales and marketing structure. In the first half of 2008, the Company's other operating revenues were RMB 12.4 billion, representing a decrease of 1.2% over the first half of 2007. In the first half of 2008, the Company recognised a subsidy of RMB 33.4 billion.

The following table lists the Company's external sales volume of major products, their average realised prices and the respective rate of changes between the first half of 2008 and the first half of 2007 for the Company's major products:

	Sales Volume (thousand tonnes)			Average realised price (RMB/tonne, RMB/ thousand cubic meters)
	Six-month periods ended 30 June		Change	Six-month periods ended 30 June		Change
	2008	2007	(%)	2008	2007	(%)
Crude oil	2,344	2,034	15.2	4,275	2,807	52.3
Natural gas (million cubic
meters)	3,034	2,863	6.0	886	794	11.6
Gasoline	19,019	17,103	11.2	5,976	5,282	13.1
Diesel	41,420	37,222	11.3	5,350	4,595	16.4
Kerosene, including jet fuel	4,383	3,467	26.4	5,719	4,663	22.6
Basic chemical feedstock	4,956	5,082	(2.5)	6,817	6,081	12.1
Synthetic fiber monomer
and polymer	1,856	1,990	(6.7)	9,324	8,837	5.5
Synthetic resin	3,895	3,858	1.0	11,210	10,026	11.8
Synthetic fiber	710	768	(7.6)	11,268	11,562	(2.5)
Synthetic rubber	535	431	24.1	17,703	13,239	33.7
Chemical fertiliser	692	785	(11.8)	1,759	1,685	4.4

Most of crude oil and a small portion of natural gas produced by the Company were internally used for refining and chemical production and the remaining were sold to other customers. In the first half of 2008, turnover from crude oil and natural gas that were sold externally by the exploration and production segment amounted to RMB 13.9 billion, representing an increase of 58.5% compared with the first half of 2007, accounting for 1.8% of the Company's turnover, other operating revenues and other income. The change was mainly due to the increase in price and sales volume of crude oil compared to the first half 2007.

The Company's refining segment, marketing and distribution segment sell petroleum products (mainly consisting of gasoline, diesel, kerosene, which are referred to as oil products and other refined petroleum products) to third parties. In the first half of 2008, the external sales revenue of petroleum products by these two segments were RMB 459.3 billion, representing an increase of 27.5% compared with that in the first half of 2007, accounting for 59.8% of the Company's turnover, other operating revenues and other income. The increase was mainly due to the increased prices of oil products and our proactive efforts in increasing sales volume, optimising the marketing structure, and expanding the markets of other refined petroleum products. The sales revenue of gasoline, diesel and kerosene was RMB 360.3 billion, representing an increase of 29.8% over the same period in 2007, accounting for 78.4% of the sales revenue of petroleum products. Turnover of other refined petroleum products was RMB 99.0 billion, representing an increase of 19.6% compared with the first half of 2007, accounting for 21.6% of the sales revenue of petroleum products.

The Company's external sales revenue of chemical products was RMB 115.4 billion, representing an increase of 10.3% compared with the first half of 2007, accounting for 15.0% of its turnover, other operating revenues and other income. The increase was mainly due to the increase in the price of chemical products.

5.7.2 Operating expenses

In the first half of 2008, the Company's operating expenses were RMB 761.0 billion, representing an increase of 49.1% over the first half of 2007. The operating expenses mainly consisted of the following:

Purchased crude oil, products and operating supplies and expenses

In the first half of 2008, purchased crude oil, products and operating supplies and expenses were RMB 674.1 billion, representing an increase of 53.3% over the first half of 2007, accounting for 88.6% of the total operating expenses, of which:

Purchased crude oil expenses were RMB 355.2 billion, representing an increase of 70.4% over the first half of 2007, accounting for 46.7% of the total operating expenses, increased by 5.8 percentage points over the first half of 2007.

With the rapid growth of economy and market demand in China, the processing volume of crude oil purchased from the third parties increased accordingly. Throughput of crude oil that was purchased externally in the first half of 2008 was 66.7 million tonnes (excluding the amount processed for third parties), increased by 10.4% over the first half of 2007; average cost of crude oil purchased externally is RMB 5,326 per tonne, increased by 54.4% over the first half of 2007.

The Company's other purchasing expenses were RMB 318.9 billion, representing an increase of 37.8% over the first half of 2007, accounting for 41.9% of the total operating expenses. This was mainly due to the significant increase in the cost of gasoline, diesel and other feedstock purchased externally.

Selling, general and administrative expenses

The Company's selling, general and administrative expenses totaled RMB 18.2 billion in the first half of 2008, representing an increase of 3.3% over the first half of 2007.

Depreciation, depletion and amortisation

Depreciation, depletion and amortisation were RMB 22.4 billion, representing an increase of 15.2% compared with the first half of 2007. This was mainly due to the expansion of the Company's investment scale and the additions in property, plant and equipment.

Exploration expenses

In the first half of 2008, exploration expenses were RMB 4.7 billion, representing a decrease of 17.3% compared with the first half of 2007.

Personnel expenses

In the first half of 2008, personnel expenses were RMB 12.6 billion, representing an increase of 17.1% compared with the first half of 2007.

Employee reduction expenses

In the first half of 2008, according to the Company's voluntary employee reduction plan, the Company undertook employee reduction expenses of approximately RMB 0.2 billion for 3,600 employees.

Taxes other than income tax

In the first half of 2008, the Company's taxes other than income tax were RMB 28.5 billion, an increase of 96.8% compared with the first half of 2007, and this was mainly due to an increase of special levy on crude oil income by RMB 13.3 billion; meanwhile, consumption tax increased by RMB 1 billion as a result of the sales increase of gasoline and diesel, etc.

Other operating expenses (net)

In the first half of 2008, Company's other operating expenses (net) were RMB 0.2 billion, representing a decrease of 89.4%, compared with the first half of 2007. This was mainly due to the decrease in impairment losses on long-lived assets compared with the first half of 2007.

5.7.3 Operating profit

In the first half of 2008, the Company's operating profit was RMB 7.2 billion, representing a decrease of 86.5% over the first half of 2007.

5.7.4 Net finance costs

In the first half of 2008, the Company's net finance costs were RMB 0.7 billion, representing a decrease of 80.8% compared with the first half of 2007. This was mainly due to an increase of RMB 3.9 billion on the unrealised gain on embedded derivatives component of convertible bonds and an increase of RMB 0.9 billion in exchange gain (net) compared with the first half of 2007.

5.7.5 Profit before tax

In the first half of 2008, the Company's profit before taxation was RMB 8.2 billion, representing a decrease of 84.5% over the first half of 2007.

5.7.6 Tax benefit/(expense)

In the first half of 2008, the Company's tax benefit was RMB 0.1 billion.

5.7.7 Profit attributable to minority interests

In the first half of 2008, the Company's profit attributable to minority interests were RMB 0.1 billion, representing a decrease of 94.7% compared with the first half of 2007. This was mainly due to the decrease of profit from consolidated subsidiaries such as Sinopec Shanghai Petrochemical Company Limited, Sinopec Hainan Refining and Chemical Company Limited and Sinopec Qingdao Refining and Chemical Company.

5.7.8 Profit attributable to equity shareholders of the Company

In the first half of 2008, the Company's profit attributable to equity shareholders of the Company was RMB 8.26 billion, representing a decrease of 77.3% against the first half of 2007.

5.8 Use of the proceeds from share issue

5.8.1 Use of the proceeds from share issue

□ applicable √ inapplicable

5.8.2 Change of projects

□ applicable √ inapplicable

5.9 Business prospects and operating plan for the second half

√ applicable □ inapplicable

Looking into the second half of 2008, the Company believes China's economy is expected to maintain growth momentum. It is expected that in the second half of this year the international prices of crude oil will remain high, the domestic refining business will still be under pressure and the demand growth for chemical products may slow down.

In the second half of this year, the Company shall continue to take flexible operational strategies, intensify management and make optimal arrangement for various production and operation activities.

In exploration and development segment, the Company will speed up the exploration in such key regions as Tahe and northeastern Sichuan, actively tap the potentials of the existing oil fields, and further improve recovery rate. In the second half of 2008, the Company plans to produce 21.24 million tonnes of crude oil and 4.2 billion cubic meters of natural gas.

In refining segment, the Company shall continue to operate at its full capacity on the basis of ensuring safe and stable production to ensure market supplies, optimise the purchase and allocation of crude oil resources, make efforts to reduce the costs of crude oil, further adjust product structure and increase the output of high value-added products. In the second half of 2008, the Company plans to refine 89.75 million tonnes of crude oil.

In marketing and distribution segment, the Company will continue to meticulously organise the allocation and transport of refined oil products, make efforts to guarantee the market supplies of refined oils products and ensure the oil supplies for the Olympic games and the reconstruction of disaster-stricken areas and key industries. Meanwhile, the Company shall intensify the arrangement of resources, optimise the flow and storage and transportation of resources and improve profitability from the sales. In the second half of 2008, the Company plans to a total domestic sales volume of oil products at 64 million tonnes.

In chemicals segment, the Company shall optimise raw materials, product structure and unit operation, intensify the implementation of energy-saving and material consumption, consolidate the linkage of production, sales and research, promote developments of new products, and increase the production of high value-added products. In the second half of 2008, the Company plans to produce 3.26 million tonnes of ethylene.

In the second half of 2008, we shall continue to optimise our production and operation activities, improve management, increase profit through taping potentials, reducing energy consumption and reducing emissions, and strive to fulfill the production and business goals of the whole year.

5.10 Caution and explanation as to the anticipated loss of accumulated net profits from the beginning of the year to the end of the next reporting period or significant changes over the same period of last year

Since the beginning of the year, with the soaring international crude oil prices and the tight control over domestic oil products prices, prices of crude oil and oil products were inverted, which, resulted in significant losses of the Company's refining segment. The Company's overall profitability dropped substantially. Through preliminary estimation by the finance division, the Company expects that net profit for the first three quarters of this year shall drop more than 50 percent compared with the same period last year. 

5.11 Explanation of the management about the auditors' "non-standard opinion" for the reporting period

□ applicable √ inapplicable

5.12 Explanation of the management about the subsequent changes and the follow up actions of the matters in connection with the auditors' "non-standard opinion" in the last financial year

□ applicable √ inapplicable

§6 Significant events

6.1 Acquisition, sale of assets and assets reorganisation

6.1.1 Acquisition and purchase of assets

					Whether	Whether all the
	To trade and			To the end of	Affiliate	associated	Whether all the
Counterparty	to be acquired			the reporting	Transaction	property right	associated debtor
and/or ultimate	or placement			period, net profit	or not (if yes,	has been	and creditor has
controlling	Since the date	The date of		contributed to the	give pricing	transferred	been shifted
party	of purchase	purchase	Trading price	listed company	principle)	or not	or not
China	Asset of	June 30th, 2008	RMB1.624	No	yes, assessed	yes	yes
Petroleum	oilfield		billion		Price
Corporation	downhole
	maintenance

6.1.2 Disposition and sale of assets

□ applicable √ inapplicable

6.1.3 Progress and impact on financial positon and operating results of the relevant event after the issue of asset reorgansation report or announcement of acquition and sale of assets

□ applicable √ inapplicable

6.2 Material guarantee contracts and status of implementation

External guarantees provided by the Company (not including guarantees provided for its controlled subsidiaries)

	Date of
	Occurrence	Guarantee
	( Date of	Amount				Whether	Whether for
	Execution of	(RMB				Completed	a Connected
Obligors	the Agreement)	million)		Type of Guarantee	Term	or not	Party 1
Yueyang SINOPEC Shell Coal
GasificationCorporation Co., Ltd.	10 December 2003	377		Joint and Several Liability	10 December 2003 -	No	Yes
					10 December 2017
Shanghai Gaoqiao-SK Solvent Co., Ltd.	22 September 2006				22 September 2006 -
					22 September 2011
	24 November 2006				24 November 2006 -
					24 November 2011
	30 March 2007				30 March 2007 -
					30 March 2012
	16 April 2007	Total 75		Joint and Several Liability	16 April 2007 -	No	Yes
					16 April 2012
Fujian Refining and Petrochemical	6 September 2007	9,166		Joint and Several Liability	6 September 2007 -	No	Yes
Company Limited					31 December 2015
Balance of guarantee by Sinopec
Yangzi Petrochemical for
its associates and joint ventures		114				No	Yes
Balance of guarantee by
Sinopec Shanghai Petrochemical for
its associates and joint ventures		17				No	Yes
Balance of guarantee by
Sinopec Sales Company Limited for
its associates and joint ventures		75				No	Yes
Total amount of guarantee provided during
the reporting period 2							26
Total amount of guarantee outstanding
at the end of the reporting period 2							9,824
Guarantees provided by Sinopec Corp. for its controlled subsidiaries
Total amount of guarantee for the controlling subsidiaries during the reporting period							None
Total amount of guarantee for the controlling subsidiaries outstanding at the end of the reporting period							2,228
Total amount of guarantee by the Company (including those provided for the controlling subsidiaries)
Total amount of guarantee 3							12,052
Total amount of guarantee as a percentage of the Company's net assets							3.6%
Amount of guarantee provided for shareholders, effective controllers and connected parties							None
Amount of debt guarantee provided directly or indirectly for the companies with liabilities to asset ratio of over 70%							82
Amount of guarantee in excess of 50% of the total net assets							None
Total amount of guarantee of the above three items 4							82

Note 1: As defined in the Listing Rules of the Shanghai Stock Exchange.

Note 2: Total amount of guarantee provided during the reporting period and total amount of guarantees outstanding at the end of the reporting period include the guarantees provided by the controlled subsidiaries to external parties. The amount of guarantees assumed by Sinopec Corp. is the amount of the external guarantees provided by each controlling subsidiary multiplied by Sinopec Corp.'s respective shareholding in the controlled subsidiary.

Note 3: Total amount of guarantee is the aggregate of the amount of guarantee outstanding at the end of the reporting period (excluding the guarantees provided for controlling subsidiaries) and the amount of guarantees for controlling subsidiaries outstanding at the end of the reporting period.

Note 4: "Total amount of guarantee of the above three items" is the aggregate of "amount of guarantee provided for shareholders, effective controllers and connected parties", "amount of debt guarantees provided directly or indirectly for companies with liabilities to asset ratio of over 70%" and "the amount of guarantees in excess of 50% of net assets".

6.3 Non-operating funds provided between connected parties

□ applicable √ inapplicable

6.4 Material litigation and arbitration

□ applicable √ inapplicable

6.5 Explanations of other significant events, their impact and proposed solutions

√ applicable □ inapplicable

6.5.1 The shares of other listed companies held by the Company and status of investments in shares and securities

√ applicable □ inapplicable

					Book value	Book value
				Amount	at the end	at the beginning
			Number of	of initial	of reporting	of reporting	Accounting
Item	Stock Code	Abbreviation	shares held	investment	period	period	items
1	384(Hong Kong)	China Gas	210	HK$ 128	RMB 136	RMB 136	Long-term
		Holding	million	million	million	million	equity investment
Total			-	HK$ 128	RMB 136	RMB 136	-
				million	million	million

6.5.2 Stocks of unlisted finance enterprises and companies to be listed held by the Company

□ applicable √ inapplicable

6.5.3 5% above shareholders additional commitments regarding the restricted A Shares

□ applicable √ inapplicable

6.5.4 Significant Events 

Sichuan-to-East China Gas Project

Sichuan-to-East China Gas Project is an important project in the State's Eleventh Five-Year Plan. This project consists of two parts. One part is Puguang gas field exploration, development and gas treatment project, the other part is the pipeline project between Puguang gas field and Shanghai. It is expected that the major part of the project will be completed in 2009.

Qingdao refinery project

The Qingdao refinery, with 10 million tpa of refining capacity, commenced construction in June 2005, and was put into production on May 24, 2008.

Tianjin one million tpa ethylene project

Tianjin ethylene project includes 12.5 million tpa of refining technical innovation project, 1 million tpa ethylene project and downstream ancillary facilities. The total investment expects to be RMB 26.8 billion. The project construction started in June 2006. It is proceeding smoothly now and will be completed by the end of 2009.

Zhenhai one million tpa ethylene project

Zhenhai ethylene project with an investment of RMB 21.9 billion, which mainly consists of 1 million tpa ethylene and downstream supporting facilities and auxiliary utilities. The construction of the project commenced in November 2006 and is currently progressing smoothly. The project is expected to be completed in 2010.

6.5.5 Issuance of bonds with warrants in domestic market

Sinopec Corp. issued RMB 30 billion bonds with warrants on 20 February 2008. The Bonds with Warrants have a 6-year term and 0.8% per annum fixed coupon rate, and the 3.03 billion warrants were distributed with exercise ratio of 2 for 1 and a term of 2 years. The bonds and warrants were listed on Shanghai Stock Exchange on 4 March 2008. The proceeds from issuance will be used to fund the Sichuan-East China Gas Project, Tianjin 1 million tonnes per annum (tpa) ethylene project, Zhenhai 1 million tpa ethylene project and repayment of bank loans. The proceeds from the exercise of warrants, if exercised, will be used to fund Tianjin 1 million tpa ethylene project, Zhenhai 1 million tpa ethylene project, Wuhan ethylene project, repayment of bank loans or replenishment of working capital of Sinopec Corp.

6.5.6 Subsidies

In recent years, the international crude oil prices rose sharply and the prices of domestic oil products are controlled tightly, which brought about the situation that oil products and crude oil prices had inverted. To ensure stable supply to the oil products market, the Company proactively adopted various measures to increase the supply of oil products in the market, which has achieved remarkable effect and has also led to the significant loss in the Company's refining business. In March 2008, the Company received subsidies of RMB 12.3 billion, of which RMB 4.9 billion has been included in the income of 2007, and RMB 7.4 billion was included in the income of the first quarter of 2008.

From April 1, 2008, the government began to subsidise the Company for the losses suffered from processing of imported crude oil, and put into effect the VAT refund policy for the Company for imported refined oil products. In the second quarter, the Company recorded a total subsidy of RMB 22.93 billion, and RMB 3.07 billion of VAT refund for imported refined oil products.

6.5.7 Dividend distribution for the year ended 31 December 2007

As approved at the 2007 Annual General Meeting of Sinopec Corp., a final cash dividend of RMB 0.115 (inclusive of tax) per share for 2007 was distributed, which amounted to a total cash dividend of RMB 9.971 billion. On 30 June 2008, Sinopec Corp. distributed the final dividend for 2007 to shareholders whose names appeared on the register of members of Sinopec Corp. on 13 June 2008.

For the year of 2007, total cash dividend of RMB 0.165 (inclusive of tax) per share was distributed and the total cash dividend amounted to RMB 14.306 billion.

6.5.8 Interim dividend distribution plan for the six-month period ended 30 June 2008

With the authorisation of 2007 Annual General Meeting, the interim dividend distribution plan for the six-month period ended 30 June 2008 was approved at the twenty third meeting of the Third Session of the Board of Directors. An interim cash dividend of RMB 0.03 (inclusive of tax) per share will be distributed based on the total number of shares of 86,702.439 million as at 30 June 2008. The total cash dividend amounts to RMB2.601 billion.

The interim dividend will be distributed on or before Monday, 29 September 2008 to the shareholders whose names appear on the register of members of Sinopec Corp. on Friday, 19 September 2008.

To be entitled to the interim dividend, holders of H shares shall lodge their share certificate(s) and transfer documents with Hong Kong Registrars Limited at the 46th floor., Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, for registration of transfer, by no later than 4:00pm on Friday, 12 September 2008. The register of members of the H shares of Sinopec Corp. will be closed from Monday, 15 September 2008, to Friday, 19 September 2008 (both dates inclusive).

Dividends will be denominated and declared in Renminbi. Dividends for domestic shares will be paid in Renminbi and dividends for foreign shares will be paid in Hong Kong dollars. The exchange rate for dividends to be paid in Hong Kong dollars is the average of the basic exchange rate of Hong Kong dollar to Renminbi published by the People's Bank of China during the week prior to the date of declaration of dividends, being Friday, 22 August 2008.

§7 Financial Statements

The followings are the financial statements of China Petroleum & Chemical Corporation ("the Company") and its subsidiaries ("the Group") for the six months ended 30 June 2008, which are extracted from the audited interim financial statements prepared in accordance with the PRC Accounting Standards for Business Enterprises and International Financial Reporting Standards ("IFRS") with 2007 comparatives. 

7.1 Auditors' opinion

Financial statements □ Unaudited √ Audited

Auditors' opinion √ Standard unqualified opinion □ Not Standard opinion

  To the Shareholders of

China Petroleum & Chemical Corporation:

We have audited the accompanying financial statements of China Petroleum & Chemical Corporation (the "Company"), which comprise the consolidated balance sheet and balance sheet as at 30 June 2008, and the consolidated income statement and income statement, consolidated statement of changes in equity and statement of changes in equity, consolidated cash flow statement and cash flow statement for the six-month period ended 30 June 2008, and notes to the financial statements.

1. MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's management is responsible for the preparation of these financial statements in accordance with the Accounting Standards for Business Enterprises (2006) issued by the Ministry of Finance of the People's Republic of China. This responsibility includes: (1) designing, implementing and maintaining internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error; (2) selecting and applying appropriate accounting policies; and (3) making accounting estimates that are reasonable.

2. AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China's Auditing Standards for the Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

3. OPINION

In our opinion, the financial statements comply with the requirements of the Accounting Standards for Business Enterprises (2006) issued by the Ministry of Finance of the People's Republic of China and present fairly, in all material respects, the Company's consolidated financial position and financial position as at 30 June 2008, and the consolidated results of operations, results of operations, consolidated cash flows and cash flows for the six-month period ended 30 June 2008.

KPMG Huazhen	Certified Public Accountants
	Registered in the People's Republic of China
	Zhang Jingjing
	Zhang Yansheng
Beijing, The People's Republic of China	22 August 2008

  7.2 The Group's and the Company's financial statements with comparatives 

7.2.1 Financial statements prepared under the PRC Accounting Standards for Business Enterprises

Balance Sheet

	At 30 June 2008		At 31 December 2007
	The Group	The Company	The Group	The Company
	RMB millions	RMB millions	RMB millions	RMB millions
Assets
Current assets
Cash at bank and in hand	9,774	3,974	8,364	3,105
Bills receivable	8,938	3,264	12,851	6,377
Trade accounts receivable	43,084	15,639	22,947	13,547
Other receivables	20,224	18,234	11,822	18,209
Advance payments	14,406	13,441	9,402	9,252
Inventories	163,488	113,537	116,049	65,901
Other current assets	127	80	100	23
	－－－－－－－	－－－－－－－	－－－－－－－	－－－－－－－
Total current assets	260,041	168,169	181,535	116,414
	----------------	----------------	----------------	----------------
Non-current assets
Long-term equity investments	31,189	84,240	31,335	85,784
Fixed assets	365,785	291,729	361,148	290,082
Construction in progress	105,503	98,598	95,408	80,720
Intangible assets	16,730	11,371	15,232	10,322
Goodwill	15,707	-	15,690	-
Long-term deferred expenses	6,348	5,273	5,842	4,995
Deferred tax assets	18,037	16,205	10,192	9,418
Other non-current assets	1,216	90	2,190	735
	－－－－－－－	－－－－－－－	－－－－－－－	－－－－－－－
Total non-current assets	560,515	507,506	537,037	482,056
	----------------	----------------	----------------	----------------
	－－－－－－－	－－－－－－－	－－－－－－－	－－－－－－－
Total assets	820,556	675,675	718,572	598,470
	＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝
Liabilities and shareholders' equity
Current liabilities
Short-term loans	67,229	20,001	36,954	21,952
Bills payable	17,563	9,615	12,162	8,613
Trade accounts payable	126,669	90,363	93,049	58,932
Receipts in advance	27,448	23,325	25,082	23,412
Staff costs payable	7,091	6,234	5,905	5,282
Taxes payable	9,324	9,870	17,562	15,383
Other payables	65,617	111,658	47,503	65,729
Short-term debentures payable	-	-	10,074	10,074
Current portion of non-current liabilities	18,785	18,033	13,466	12,813
	－－－－－	－－－－－	－－－－－	－－－－－
Total current liabilities	339,726	289,099	261,757	222,190
	----------------	----------------	----------------	----------------
Non-current liabilities
Long-term loans	75,920	55,554	77,708	67,055
Debentures payable	62,479	62,479	42,606	42,606
Provisions	8,168	7,714	7,613	7,002
Deferred tax liabilities	1,471	577	1,492	584
Other non-current liabilities	1,493	587	1,049	601
Total non-current liabilities	149,531	126,911	130,468	117,848
	----------------	----------------	----------------	----------------
Total liabilities	489,257	416,010	392,225	340,038
	----------------	----------------	----------------	----------------
Shareholders' equity
Share capital	86,702	86,702	86,702	86,702
Capital reserve	43,545	43,427	38,391	38,175
Surplus reserves	65,392	65,392	64,797	64,797
Retained profits
(Including cash dividend declared
after the balance sheet date of
RMB 2,601 million
(2007: Proposed cash dividend
of RMB 9,971 million))	109,832	64,144	111,059	68,758
	－－－－－	－－－－－	－－－－－	－－－－－
Shareholders' equity attributable
to equity shareholders of the Company	305,471	259,665	300,949	258,432
Minority interests	25,828	-	25,398	-
	－－－－－	－－－－－	－－－－－	－－－－－
Total shareholders' equity	331,299	259,665	326,347	258,432
	----------------	----------------	----------------	----------------
Total liabilities and shareholders' equity	820,556	675,675	718,572	598,470
	＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝

Income Statement

				Six-month periods ended 30 June 2008		Six-month periods ended 30 June 2007
				The Group	The Company	The Group	The Company
				RMB millions	RMB millions	RMB millions	RMB millions
Operating income				734,783	519,484	563,870	408,967
Less:	Cost of sales			679,678	471,044	461,426	330,838
	Sales taxes and surcharges			28,451	25,332	14,456	11,996
	Selling expenses			11,885	9,667	9,535	8,122
	Administrative expenses			18,721	15,384	17,139	13,478
	Financial expenses			3,658	3,735	2,760	2,256
	Exploration expenses,
	including dry holes			4,728	4,728	5,717	5,715
	Impairment losses			16,079	15,758	1,535	1,577
Add:	Fair value gain/(loss)			2,956	2,956	(897)	(897)
	Investment income			1,677	4,806	2,880	9,264
				－－－－－－	－－－－－－	－－－－－－	－－－－－－
Operating (loss) / profit				(23,784)	(18,402)	53,285	43,352
Add:	Non-operating income			33,765	22,669	169	111
Less:	Non-operating expenses			465	415	753	580
				＝＝＝＝＝＝	＝＝＝＝＝＝	＝＝＝＝＝＝	＝＝＝＝＝＝
Profit before taxation				9,516	3,852	52,701	42,883
Less:	Income tax expense			101	(2,100)	16,127	10,814
				－－－－－－	－－－－－－	－－－－－－	－－－－－－
Net profit				9,415	5,952	36,574	32,069
				＝＝＝＝＝＝	＝＝＝＝＝＝	＝＝＝＝＝＝	＝＝＝＝＝＝
Including:		Net profit made by acquiree
		before the consolidation		-		217
				＝＝＝＝＝＝		＝＝＝＝＝＝
Attributable to:
Equity shareholders of the Company				9,339		35,110
Minority interests				76		1,464
				＝＝＝＝＝＝		＝＝＝＝＝＝
Basic earnings per share				0.11		0.40
				＝＝＝＝＝＝		＝＝＝＝＝＝
Diluted earnings per share				0.08		0.40
				＝＝＝＝＝＝		＝＝＝＝＝＝

Cash Flow Statement

	Six-month periods ended 30 June 2008		Six-month periods ended 30 June 2007
	The Group	The Company	The Group	The Company
	RMB millions	RMB millions	RMB millions	RMB millions
Cash flows from operating activities:
Cash received from sale of goods
and rendering of services	843,591	607,618	645,091	471,896
Rentals received	149	88	145	81
Grants received	28,308	20,384	-	-
Other cash received relating to
operating activities	2,399	29,785	1,675	4,915
	－－－－－	－－－－－－	－－－－－	－－－－－－
Sub-total of cash inflows	874,447	657,875	646,911	476,892
	----------------	----------------	----------------	----------------
Cash paid for goods and services	(788,688)	(550,198)	(512,024)	(369,376)
Cash paid for operating leases	(3,116)	(2,792)	(3,000)	(2,874)
Cash paid to and on behalf of employees	(11,694)	(8,604)	(9,579)	(7,498)
Value added tax paid	(19,548)	(16,484)	(22,101)	(16,977)
Income tax paid	(13,326)	(10,517)	(16,787)	(12,798)
Taxes paid other than value added
tax and income tax	(24,993)	(21,312)	(13,163)	(10,787)
Other cash paid relating to
operating activities	(7,096)	(7,851)	(5,557)	(3,507)
	－－－－－	－－－－－－	－－－－－	－－－－－－
Sub-total of cash outflows	(868,461)	(617,758)	(582,211)	(423,817)
	----------------	----------------	----------------	----------------
	－－－－－	－－－－－－	－－－－－	－－－－－－
Net cash flow from operating activities	5,986	40,117	64,700	53,075
	----------------	----------------	----------------	----------------
Cash flows from investing activities:
Cash received from sale of investments	1,049	771	758	173
Dividends received	1,192	7,021	1,668	8,744
Net cash received from sale of fixed
assets and intangible assets	109	103	158	66
Cash received on maturity of time
deposits with financial institutions	466	44	510	389
Other cash received relating
to investing activities	197	102	370	199
	－－－－－	－－－－－－	－－－－－	－－－－－－
Sub-total of cash inflows	3,013	8,041	3,464	9,571
	----------------	----------------	----------------	----------------
Cash paid for acquisition of fixed
assets and intangible assets	(44,880)	(41,469)	(40,756)	(31,506)
Cash paid for purchase of investments	(2,675)	(3,570)	(1,037)	(5,999)
Cash paid for purchase of time
deposits with financial institutions	(1,106)	(45)	(3,178)	(468)
Cash paid for acquisition
of subsidiaries, net	-	-	(7,116)	(3,500)
	－－－－－	－－－－－－	－－－－－	－－－－－－
Sub-total of cash outflows	(48,661)	(45,084)	(52,087)	(41,473)
	----------------	----------------	----------------	----------------
	－－－－－	－－－－－－	－－－－－	－－－－－－
Net cash flow from investing activities	(45,648)	(37,043)	(48,623)	(31,902)
	----------------	----------------	----------------	----------------
Cash flows from financing activities:
Cash received from contribution
from minority shareholders	1,065	-	194	-
Cash received from issuance
of convertible bonds,
net of issuance costs	29,850	29,850	11,368	11,368
Cash received from issuance
of corporate bonds	-	-	5,000	5,000
Cash received from borrowings	431,302	279,437	316,769	205,534
	－－－－－	－－－－－－	－－－－－	－－－－－－
Sub-total of cash inflows	462,217	309,287	333,331	221,902
	----------------	----------------	----------------	----------------
Cash repayments of corporate bonds	(10,000)	(10,000)	(10,000)	(10,000)
Cash repayments of borrowings	(396,247)	(287,551)	(323,035)	(218,890)
Cash paid for dividends, profits
distribution or interest expenses	(14,570)	(13,657)	(13,284)	(12,249)
Dividends paid to minority shareholders
by subsidiaries	(642)	-	(219)	-
Distributions to Sinopec Group Company	(285)	(285)	-	-
	－－－－－	－－－－－－	－－－－－	－－－－－－
Sub-total of cash outflows	(421,744)	(311,493)	(346,538)	(241,139)
	----------------	----------------	----------------	----------------
	－－－－－	－－－－－－	－－－－－	－－－－－－
Net cash flow from financing activities	40,473	(2,206)	(13,207)	(19,237)
	----------------	----------------	----------------	----------------
Effects of changes in foreign exchange rate	(41)	-	(7)	-
	----------------	----------------	----------------	----------------
	－－－－－	－－－－－－	－－－－－	－－－－－－
Net increase in cash and cash equivalents	770	868	2,863	1,936
	＝＝＝＝＝	＝＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝＝

  Consolidated Statement of Changes In Equity

								Total
								shareholders'
								equity
								attributable
								to equity		Total
				Share	Capital	Surplus	Retained	shareholders of	Minority	shareholders'
				capital	reserve	reserves	profits	the Company	interests	equity
				RMB millions	RMB millions	RMB millions	RMB millions	RMB  millions	RMB millions	RMB  millions
Balance at 1 January 2007				86,702	38,553	59,519	74,608	259,382	22,417	281,799
Changes in equity for the period
1.	Net profit			-	-	-	35,110	35,110	1,464	36,574
2.	Gain and loss recognised
	directly in equity
	- Unrealised gain for the
	change in fair value
	of available-for- sale
	financial assets,
	net of deferred tax			-	170	-	-	170	127	297
				－－－	－－－	－－－－	－－－	－－－－	－－－	－－－－
Sub-total of 1&2				-	170	-	35,110	35,280	1,591	36,871
3.	Appropriation:
	- Appropriation to
	surplus reserves			-	-	3,207	(3,207)	-	-	-
	- Dividend declared			-	-	-	(9,537)	(9,537)	-	(9,537)
4.	Distributions to minority
	interests net of contributions			-	-	-	-	-	(25)	(25)
				－－－	－－－	－－－－	－－－	－－－－	－－－	－－－－
Balance at 30 June 2007				86,702	38,723	62,726	96,974	285,125	23,983	309,108
				＝＝＝	＝＝＝	＝＝＝＝	＝＝＝	＝＝＝＝	＝＝＝	＝＝＝＝
Balance at 1 January 2008				86,702	38,391	64,797	111,059	300,949	25,398	326,347
Changes in equity for the period
1.	Net profit			-	-	-	9,339	9,339	76	9,415
2.	Gain and loss recognised
	directly in equity
	- Unrealised loss for the
	change in fair value
	of available-for- sale
	financial assets, net
	of deferred tax			-	(1,666)	-	-	(1,666)	(69)	(1,735)
	- Issuance of the Bonds
	with Warrants			-	6,879	-	-	6,879	-	6,879
				－－－	－－－	－－－－	－－－	－－－－	－－－	－－－－
Sub-total of 1&2				-	5,213	-	9,339	14,552	7	14,559
3.		Appropriation:
		- Appropriation to
		surplus reserves		-	-	595	(595)	-	-	-
		- Dividend declared		-	-	-	(9,971)	(9,971)	-	(9,971)
4.		Contributions from
		minority interests,
		net of distributions		-	-	-	-	-	423	423
5.		Distribution to Sinopec
		Group Company		-	(59)	-	-	(59)	-	(59)
				－－－	－－－	－－－－	－－－	－－－－	－－－	－－－－
Balance at 30 June 2008				86,702	43,545	65,392	109,832	305,471	25,828	331,299
				＝＝＝	＝＝＝	＝＝＝＝	＝＝＝	＝＝＝＝	＝＝＝	＝＝＝＝

Statement of Changes In Equity

							Total
			Share	Capital	Surplus	Retained	shareholders'
			capital	reserve	reserves	profits	equity
			RMB millions	RMB millions	RMB millions	RMB millions	RMB millions
Balance at 1 January 2007			86,702	36,526	59,329	33,415	215,972
Changes in equity for the period
1.	Net profit (as previously
	reported)		-	-	-	24,476	24,476
2.	Investment income from
	subsidiaries		-	-	-	7,593	7,593
			－－－－－	－－－－－	－－－－－	－－－－－	－－－－－
Sub-total of 1&2 (as restated)			-	-	-	32,069	32,069
3.	Appropriation:
	- Appropriation to
	surplus reserves		-	-	3,207	(3,207)	-
	- Dividend declared		-	-	-	(9,537)	(9,537)
			－－－－－	－－－－－	－－－－－	－－－－－	－－－－－
Balance at 30 June 2007			86,702	36,526	62,536	52,740	238,504
			＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝
Balance at 1 January 2008			86,702	38,175	64,797	68,758	258,432
Changes in equity for the period
1.	Net profit		-	-	-	5,952	5,952
2.	Gain and loss recognised
	directly in equity
	- Unrealised loss for the
	change in fair value
	of available-for- sale
	financial assets, net
	of deferred tax		-	(1,568)	-	-	(1,568)
	- Issuance of the Bonds
	with Warrants		-	6,879	-	-	6,879
			－－－－－	－－－－－	－－－－－	－－－－－	－－－－－
Sub-total of 1&2			-	5,311	-	5,952	11,263
3.	Appropriation:
	- Appropriation to
	surplus reserves		-	-	595	(595)	-
	- Dividend declared		-	-	-	(9,971)	(9,971)
4.	Distribution to Sinopec
	Group Company		-	(59)	-	-	(59)
			－－－－－	－－－－－	－－－－－	－－－－－	－－－－－
Balance at 30 June 2008			86,702	43,427	65,392	64,144	259,665
			＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝	＝＝＝＝＝

  7.2.2 Financial statements prepared under International Financial Reporting Standards

Consolidated income statement 

	Six-month periods ended 30 June
	2008	2007
	RMB millions	RMB millions
Turnover and other operating revenues
Turnover	722,429	551,361
Other operating revenues	12,354	12,509
	－－－－－－－	－－－－－－
	734,783	563,870
	-----------	-----------
Other income	33,402	-
	-----------	-----------
Operating expenses
Purchased crude oil, products and operating
supplies and expenses	(674,068)	(439,844)
Selling, general and administrative expenses	(18,221)	(17,637)
Depreciation, depletion and amortisation	(22,435)	(19,470)
Exploration expenses, including dry holes	(4,728)	(5,717)
Personnel expenses	(12,626)	(10,786)
Employee reduction expenses	(199)	(150)
Taxes other than income tax	(28,451)	(14,456)
Other operating expenses, net	(235)	(2,226)
	－－－－－－－	－－－－－－
Total operating expenses	(760,963)	(510,286)
	-----------	-----------
Operating profit	7,222	53,584
	-----------	-----------
Finance costs
Interest expense	(5,563)	(3,912)
Interest income	212	372
Unrealised gain/(loss) on embedded derivative
component of the Convertible Bonds	2,956	(897)
Foreign exchange loss	(367)	(66)
Foreign exchange gain	2,060	846
	－－－－－－－	－－－－－－
Net finance costs	(702)	(3,657)
	-----------	-----------
Investment income	319	666
	-----------	-----------
Share of profits less losses from associates
and jointly controlled entities	1,358	2,214
	-----------	-----------
	－－－－－－－	－－－－－－
Profit before taxation	8,197	52,807
Tax benefit/(expense)	136	(14,965)
	－－－－－－－	－－－－－－
Profit for the period	8,333	37,842
	＝＝＝＝＝＝＝	＝＝＝＝＝＝
Attributable to:
Equity shareholders of the Company	8,255	36,375
Minority interests	78	1,467
	－－－－－－－	－－－－－－
Profit for the period	8,333	37,842
	＝＝＝＝＝＝＝	＝＝＝＝＝＝
Dividends payable to equity shareholders
of the Company attributable to the period:
Interim dividend declared after the balance sheet date	2,601	4,335
	＝＝＝＝＝＝＝	＝＝＝＝＝＝
Earnings per share:
Basic earnings per share	0.10	0.42
	＝＝＝＝＝＝＝	＝＝＝＝＝＝
Diluted earnings per share	0.06	0.42
	＝＝＝＝＝＝＝	＝＝＝＝＝＝

  Consolidated balance sheet

	At 30 June	At 31 December
	2008	2007
	RMB millions	RMB millions
Non-current assets
Property, plant and equipment	378,384	375,142
Construction in progress	105,503	95,408
Goodwill	15,507	15,490
Interest in associates	15,981	16,865
Interest in jointly controlled entities	13,520	12,723
Investments	2,064	3,194
Deferred tax assets	18,278	10,439
Lease prepayments	9,730	8,224
Long-term prepayments and other assets	10,792	10,124
	－－－－－－	－－－－－－
Total non-current assets	569,759	547,609
	-----------	-----------
Current assets
Cash and cash equivalents	8,466	7,696
Time deposits with financial institutions	1,308	668
Trade accounts receivable, net	43,084	22,947
Bills receivable	8,938	12,851
Inventories	163,474	116,032
Prepaid expenses and other current assets	43,440	24,922
	－－－－－－	－－－－－－
Total current assets	268,710	185,116
	-----------	-----------
Current liabilities
Short-term debts	64,758	44,654
Loans from Sinopec Group Company and
fellow subsidiaries	21,256	15,840
Trade accounts payable	126,669	93,049
Bills payable	17,563	12,162
Accrued expenses and other payables	113,093	89,171
Income tax payable	5,070	10,479
	－－－－－－	－－－－－－
Total current liabilities	348,409	265,355
	-----------	-----------
	－－－－－－	－－－－－－
Net current liabilities	(79,699)	(80,239)
	-----------	-----------
	－－－－－－	－－－－－－

  

Total assets less current liabilities	490,060	467,370
	-----------	-----------
Non-current liabilities
Long-term debts	101,529	83,134
Loans from Sinopec Group Company
and fellow subsidiaries	36,870	37,180
Deferred tax liabilities	5,372	5,636
Other liabilities	9,661	8,662
	－－－－－－	－－－－－－
Total non-current liabilities	153,432	134,612
	-----------	-----------
	－－－－－－	－－－－－－
	336,628	332,758
	＝＝＝＝＝＝	＝＝＝＝＝＝
Equity
Share capital	86,702	86,702
Reserves	224,169	220,731
Total equity attributable to equity shareholders
of the Company	310,871	307,433
Minority interests	25,757	25,325
	－－－－－－	－－－－－－
Total equity	336,628	332,758
	＝＝＝＝＝＝	＝＝＝＝＝＝

  Consolidated Statement of Changes in Equity

(Amounts in millions)

									Total equity
									attributable
									to equity
					Statutory	Discretionary			shareholders
	Share	Capital	Share	Revaluation	surplus	surplus	Other	Retained	of the	Minority	Total
	capital	reserve	premium	reserve	reserve	reserve	reserves	earnings	Company	interests	equity
	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB
Balance at 1 January 2007	86,702	(21,590)	18,072	24,752	32,094	27,000	1,758	95,546	264,334	22,323	286,657
Net income recognised
directly in equity:
Unrealised gain for the
change in fair value of
available-for-sale
financial assets,
net of deferred tax	-	-	-	-	-	-	170	-	170	127	297
Effect of change in tax rate	-	-	-	-	-	-	(54)	-	(54)	17	(37)
Profit for the period	-	-	-	-	-	-	-	36,375	36,375	1,467	37,842
	－－	－－	－－	－－	－－	－－－	－－	－－	－－	－－	－
Total recognised income
for the period	-	-	-	-	-	-	116	36,375	36,491	1,611	38,102
Final dividend for 2006	-	-	-	-	-	-	-	(9,537)	(9,537)	-	(9,537)
Adjustment to statutory
surplus reserve	-	-	-	-	235	-	-	(235)	-	-	-
Appropriation	-	-	-	-	3,207	-	-	(3,207)	-	-	-
Revaluation surplus realised	-	-	-	(150)	-	-	-	150	-	-	-
Realisation of deferred tax
on lease prepayments	-	-	-	-	-	-	(4)	4	-	-	-
Transfer from retained
earnings to other reserves	-	-	-	-	-	-	185	(185)	-	-	-
Distributions to minority
interests net of
contributions	-	-	-	-	-	-	-	-	-	(25)	(25)
	－－	－－	－－	－－	－－	－－－	－－	－－	－－	－－	－
Balance at 30 June 2007	86,702	(21,590)	18,072	24,602	35,536	27,000	2,055	118,911	291,288	23,909	315,197
	＝＝	＝＝	＝＝	＝＝	＝＝	＝＝＝	＝＝	＝＝	＝＝	＝＝	＝
Balance at 1 January 2008	86,702	(22,652)	18,072	24,114	37,797	27,000	3,100	133,300	307,433	25,325	332,758
Net income/(loss) recognised
directly in equity:
Unrealised loss for the
change in fair value of
available-for-sale
financial assets,
net of deferred tax	-	-	-	-	-	-	(1,666)	-	(1,666)	(69)	(1,735)
Profit for the period	-	-	-	-	-	-	-	8,255	8,255	78	8,333
	－－	－－	－－	－－	－－	－－－	－－	－－	－－	－－	－
Total recognised income and
expenses for the period	-	-	-	-	-	-	(1,666)	8,255	6,589	9	6,598
Issuance of the Bonds
with Warrants	-	6,879	-	-	-	-	-	-	6,879	-	6,879
Final dividend for 2007	-	-	-	-	-	-	-	(9,971)	(9,971)	-	(9,971)
Appropriation	-	-	-	-	595	-	-	(595)	-	-	-
Revaluation surplus realised	-	-	-	(122)	-	-	-	122	-	-	-
Realisation of deferred tax
on lease prepayments	-	-	-	-	-	-	(4)	4	-	-	-
Distribution to Sinopec
Group Company	-	(59)	-	-	-	-	-	-	(59)	-	(59)
Contributions from minority
interests net of
distributions	-	-	-	-	-	-	-	-	-	423	423
Balance at 30 June 2008	86,702	(15,832)	18,072	23,992	38,392	27,000	1,430	131,115	310,871	25,757	336,628
	＝＝	＝＝	＝＝	＝＝	＝＝	＝＝＝	＝＝	＝＝	＝＝	＝＝	＝

  Consolidated Cash Flow Statement

(Amounts in millions)

	Six-month periods ended 30 June
	2008	2007
	RMB	RMB
Net cash generated from operating activities	2,640	62,295
	-----------	-----------
Investing activities
Capital expenditure	(41,837)	(35,707)
Exploratory wells expenditure	(2,907)	(4,320)
Purchase of investments, investments in associates
and subsidiaries, net of cash acquired	(2,675)	(4,653)
Proceeds from disposal of investments
and investments in associates	1,049	758
Proceeds from disposal of property,
plant and equipment	109	125
Purchase of time deposits with financial institutions	(1,106)	(3,178)
Proceeds from maturity of time deposits
with financial institutions	466	510
	－－－－－－	－－－－
Net cash used in investing activities	(46,901)	(46,465)
	-----------	-----------
Financing activities
Proceeds of issuance of convertible bonds,
net of issuance costs	29,850	11,368
Proceeds of issuance of corporate bonds	-	5,000
Proceeds from bank and other loans	431,302	316,769
Repayments of corporate bonds	(10,000)	(10,000)
Repayments of bank and other loans	(396,247)	(323,035)
Distributions to minority interests	(642)	(219)
Contributions from minority interests	1,065	194
Dividend paid	(9,971)	(9,537)
Distributions to Sinopec Group Company	(285)	(3,500)
	－－－－－－	－－－－
Net cash generated from/(used in) financing activities	45,072	(12,960)
	-----------	-----------
	－－－－－－	－－－－

Net increase in cash and cash equivalents	811	2,870
Cash and cash equivalents at 1 January	7,696	7,063
Effect of foreign exchange rate changes	(41)	(7)
	－－－－－－	－－－－－
Cash and cash equivalents at 30 June	8,466	9,926
	＝＝＝＝＝＝	＝＝＝＝＝

7.3 In the reporting period, there was no change to the accounting policies, accounting estimate or audit methods.

7.4 In the reporting period, there was no adjustment to accounting errors.

7.5 In the reporting period, there was no significant change to the scope of consolidation of the financial statements.

§8 Repurchase, Sales and Redemption of shares

Apart from the disclosures above, Sinopec Corp. or any of its subsidiaries have not repurchased, sold or redeemed any listed securities of Sinopec Corp. or its subsidiaries during the reporting period.

§9 Application of the Model Code

In this reporting period, no director has infringed the requirements set out under the Model Code for Securities Transactions by Directors of Listed Issuers, Appendix 10 to the Hong Kong Listing Rules.

§10 Corporate Governance Practices

Sinopec Corp. has complied with the code provisions of the Code on Corporate Governance Practice contained in Appendix 14 to the Hong Kong Listing Rules.

§11 Review of Financial Results

The financial results for the six months ended 30 June 2008 have been reviewed with no disagreement by the Audit Committee of Sinopec Corp.

§12 The interim report containing all the information required by paragraphs 46(1) to (9) of Appendix 16 to the Hong Kong Listing Rules will be published on the website of the Hong Kong Stock Exchange in due course. 

This announcement is published in both English and Chinese languages. The Chinese version shall prevail. 

By Order of the Board

Su Shulin

Chairman

Beijing, the PRC, 22 August 2008

As at the date of this Announcement, the directors of Sinopec Corp are Messrs. Su Shulin*, Zhou Yuan*, Wang Tianpu#, Zhang Jianhua#, Wang Zhigang#, Dai Houliang#, Fan Yifei*, Yao Zhongmin*, Shi Wanpeng+, Liu Zhongli+ and Li Deshui+. 

# Executive Directors 

* Non-executive Directors 

+ Independent Non-executive Directors

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