SINOPEC Engineering : Distribution of 2015 Interim Dividend and Closure of Register of Members for H Shares

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

On 28 August 2015, the board of directors (the "Board") of SINOPEC Engineering (Group) Co., Ltd. (the "Company") approved, among other things, the proposal for the distribution of the interim dividend for the year 2015 (the "Interim Dividend"). At the Company's annual general meeting for the year 2014 held on 18 May 2015, the shareholders of the Company (the "Shareholders") passed an ordinary resolution authorising the Board to determine the interim profit distribution plan of the Company for the year 2015. Therefore, the above proposal for the distribution of the Interim Dividend was not subject to Shareholders' further consideration and approval.
In accordance with the Company's articles of association, the profits attributable to Shareholders shall be the lower of the Company's profits after taxation calculated pursuant to the PRC Accounting Standards for Business Enterprises and the International Financial Reporting Standards. The total amount of the Company's net profits attributable to Shareholders for the period from January 2015 to June 2015 calculated pursuant to the PRC Accounting Standards for Business Enterprises shall be RMB 1.687 billion. After due consideration of return to Shareholders as well as the long-term interests of the Company, the aggregate amount of the 2015 interim dividends to be distributed by the Company in cash shall be approximately RMB
0.505 billion. Based on 4,428,000,000 shares, being the total share capital of the Company as at 30 June 2015, the Interim Dividend shall be distributed to all Shareholders on the basis of RMB 0.114 per share (inclusive of applicable taxes).

* For identification purposes only.

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The Interim Dividend will be denominated and declared in Renminbi, the holders of the Company's domestic shares will be paid in Renminbi and the holders of the Company's H shares ("H Shares") will be paid in Hong Kong dollars. The exchange rate for the Interim Dividend to be paid in Hong Kong dollars will be the mean of the exchange rates of Hong Kong dollars to Renminbi as announced by the People's Bank of China during the five business days prior to the date of declaration of the Interim Dividend.
The Company will appoint a receiving agent in Hong Kong (the "Receiving Agent") and will pay to such Receiving Agent the Interim Dividend (after deductions of relevant tax, if applicable) declared for payment to holders of H Shares. The Interim Dividend will be paid by the Receiving Agent on or before Tuesday, 27 October 2015. The cheques will be despatched to holders of H Shares by ordinary post at their own risks.

The Interim Dividend will be paid on or before Tuesday, 27 October 2015 to those Shareholders whose names appear on the register of members of the Company at the close of business on Monday, 21 September 2015 (the "Record Date"). In order to qualify for the Interim Dividend, the holders of H Shares must lodge all share certificates accompanied by the transfer documents with Computershare Hong Kong Investor Services Ltd. (address: Rooms 1712-1716, 17/F, Hopewell Centre, 183
Queen's Road East, Wan Chai, Hong Kong) before 4:30 p.m. on Tuesday, 15
September 2015. For the purpose of ascertaining the Shareholders who qualify for the Interim Dividend, the register of members for H Shares will be closed from Wednesday, 16 September 2015 to Monday, 21 September 2015 (both days inclusive).

In accordance with the Enterprise Income Tax Law of the People's Republic of China (r=•A��f0�1t�ffi�J!) and its implementation regulations which came into effect on 1 January 2008, the Company is required to withhold and pay enterprise income tax at the rate of 10% on behalf of the non-resident enterprise shareholders whose names appear on the register of members for H Shares when distributing the cash dividends. Any H Shares not registered under the name of an individual Shareholder, including HKSCC Nominees Limited, other nominees, agents or trustees, or other organisations or groups, shall be deemed as shares held by non-resident enterprise Shareholders. Therefore, on this basis, enterprise income tax
shall be withheld from dividends payable to such Shareholders. If holders of H Shares intend to change its shareholder status, they should enquire about the relevant
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procedures with their agents or trustees. The Company will strictly comply with the law or the requirements of the relevant government authority and withhold and pay enterprise income tax on behalf of the relevant Shareholders based on the register of members for H Shares as at the Record Date.
If the individual holders of H Shares are Hong Kong or Macau residents or residents of the countries which had an agreed tax rate of 10% for the cash dividends given to them with China under the relevant tax agreement, the Company should withhold and pay individual income tax on behalf of the relevant Shareholders at a rate of 10%. Should the individual holders of H Shares be residents of the countries which had an agreed tax rate of less than 10% with China under the relevant tax agreement, the Company shall withhold and pay individual income tax on behalf of the relevant Shareholders at a rate of 10%. In that case, if the relevant individual holders of H Shares wish to reclaim the extra amount withheld (the "Extra Am ount") due to the application of 10% tax rate, the Company can, on behalf of the relevant Shareholders, apply for the relevant agreed preferential tax treatment provided that the relevant Shareholders submit the evidence required by the notice of the tax agreement to the Company's share registrar for H Shares within the timeline set out below. The Company will assist with the tax refund after the approval of the competent tax authority. Should the individual holders of H Shares be residents of the countries which had an agreed tax rate of over 10% but less than 20% with China under the tax agreement, the Company shall, on behalf of the relevant Shareholders, withhold and pay the individual income tax at the agreed actual rate in accordance with the relevant tax agreement. In the case that the individual holders of H Shares are residents of the countries which had an agreed tax rate of 20% with China, or which has not entered into any tax agreement with China, or otherwise, the Company shall, on behalf of the relevant Shareholders, withhold and pay the individual income tax at a rate of 20%.

For investors investing in the H Shares of the Company listed on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") through the Shanghai Stock Exchange (including enterprises and individuals) (the "Southbound Trading"), the Company has entered into the Agreement on Appropriation of Cash
Dividends of H Shares for Southbound Trading

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lì)) with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited, pursuant to which, the Shanghai Branch of China Securities Depository and Clearing Corporation Limited, as the nominee of the holders of H Shares for Southbound Trading, will receive all cash dividends distributed by the Company and distribute the cash dividends to the relevant investors of H Shares of Southbound Trading through its depositary and clearing system. The cash dividends for the investors of H Shares of Southbound Trading will be paid in Renminbi.

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Pursuant to the relevant requirements under the "Notice on the Tax Policies Related to the Pilot Program of the Shanghai-Hong Kong Stock Connect" (Caishui [2014] No.
81) ( ( J
[2014]81li')), for dividends received by domestic investors from investing in H shares listed on the Hong Kong Stock Exchange through Shanghai-Hong Kong Stock Connect, the company of such H shares shall withhold and pay individual income tax at the rate of 20% on behalf of the investors. For dividends received by domestic securities investment funds from investing in H shares listed on the Hong Kong Stock Exchange through Shanghai-Hong Kong Stock Connect, the tax payable shall be the same as that for individual investors. The company of such H shares will not withhold and pay the income tax of dividends for domestic enterprise investors and those domestic enterprise investors shall report and pay the relevant tax themselves.
Beijing, the PRC
31 August 2015
By the Order of the Board

Vice President and Secretary to the Board

As at the date of this announcement, the Company's executive director is LU Dong, YAN Shaochun, SUN Lili (employee representative director) and WU Derong (employee representative director); the non-executive directors are ZHANG Jianhua and LI Guoqing; and the independent non-executive directors are HUI Chiu Chung, Stephen, JIN Yong and YE Zheng.

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