During the year of 2023, SEG’s newly signed contracts value hit a record high of RMB80.252 billion, representing an increase of 10.7% on a year-on-year basis. The percentages of orders from Sinopec Group, domestically independent clients and overseas clients were 27.4%, 45.9% and 26.7% respectively. Excellent market performance reflects the operational effectiveness under the guidance of the company’s development strategy of “going out” (going global) and “going up” (moving upwards to high-end).

In 2023, the value of new domestic contracts signed by the Group was approximately RMB58.805 billion, domestic market continued to maintain comprehensive competitiveness, we signed front-tend engineering consultancy and engineering design contracts for a number of projects such as Maoming Oil Refining Transformation and Upgrading and Ethylene Quality Improvement Project, Luoyang One Million Tons Ethylene, Zhenhai Expansion of 1.5 million t/a Ethylene, CNOOC-Shell Huizhou Ethylene and Shandong Binhua Projects, as well as EPC and construction contracts for a number of largescale industrial park projects. The main new contracts include the general contract for undertaking engineering construction for partial plants such as ethylene, aromatics and polypropylene of the fine chemicals and feedstock project of Norinco Huajin United Petrochemical Company Limited (the “Huajin Project”); EPC contract for the Multiple Units of Zhenhai Refining and Chemical, and High-end Synthetic New Materials Project; the EPC contract for the ethylene plant of CNPC Jihua Transformation and Upgrading Project; the EPC contract and construction contract for the multiple bid sections for the BASF Integration Project and the construction contract; the EPC contract for the liquefied petroleum gas safety enhancement project of Sinopec’s Qingdao Refining and Chemical; and EPC contract for polypropylene of CNOOC Daxie Petrochemical Upgrading and Expansion Project.

In 2023, the value of new overseas contracts signed by the Group was approximately USD2.978 billion, showing a year-on-year growth of 181.2%. We maintained strong momentum in international market development. The platform of international market development has been reinforced, the number of new overseas contracts has reached a record high, the overseas business structure has been optimized, and EPC contracts have substituted construction contracts becoming the Group’s main business. The main new contracts include the EPC contract of bid sections P1 and P2 of Saudi Aramco’s Rias NGL Project (the “Saudi Riyas Project”); the EPC contract of the tank farm of the Saudi AMIRAL Project and its integration with the existing SATORP refinery (the “Saudi AMIRAL Project”), etc; we have made new achievements in overseas “Technology+” high-end engineering services, and successfully signed a number of front-end engineering service contracts such as the Front-End Engineering Design of the ADNOC Ethane Recovery Project in the UAE, technical consulting of the Mozyr Polypropylene Project in Belarus, The Process Design Package of the Xin Long Guang Polystyrene Project in Vietnam, and LNG capacity expansion technology evaluation of the Qatar Energy NFS Project; we won the bid for Saudi Aramco’s Ras Tanura Steam Treatment VHRT Project, which is the first time that the Group has ever contracted an overseas PMC project, indicating its business has reached a new level.

In 2023, the Group signed 230 new contracts in the emerging sectors of new energy and new materials, the newly signed contracts value in such new sectors amounted to approximately RMB7.672 billion, representing a year-on-year increase of 65.0%, and the expansion of emerging businesses continued to accelerate.

Currently, the Group’s newly signed contracts are gradually entering the stage of high efficient execution. We aim to leverage the advantages in group operations, emphasizing lean management across the entirety of the project process. By focusing on forging excellent projects and fostering customer trust, we aim to secure a wider share of the future market through the delivery of high quality engineering and technical services.