SINOPEC Engineering (Group) Co., Ltd. announced that during the three months ended 30 September 2023, the total value of new contracts entered into by the Group amounted to RMB 6.627 billion. As at 30 September 2023, the backlog of the Group amounted to RMB 118.731 billion. Representative New Contracts: New contract value represents the value of the contracts the Group entered into during a specified period.

The value of a contract is the amount that the Group expects to receive under the terms of the contract if the contract is performed in accordance with its terms. During the three months ended 30 September 2023, the total value of new contracts entered into by the Group amounted to RMB 6.627 billion, and contracts that are representative are as follows: an EPC contract (bidding section I) entered into with Sinopec Qingdao Refining & Chemical Co., Ltd. in relation to the LPG Safety Enhancement (Succinic Acid) Project of Qingdao Refining & Chemical with a contract value of RMB 510 million; a construction contract entered into with Shandong Binhua New Material Co., Ltd. in relation to the Propylene Oxide/Methyl Tert-Butyl Ether (P/-MTBE) Project of Shandong Binhua New Material Co., Ltd. with a contract value of RMB 477 million; and a contract entered into with Envision Energy LLC in relation to the Wind Power Installation Project for NEOM New City in Saudi Arabia with a contract value of USD 48 million. Backlog: Backlog represents the total estimated contract value of work that remains to be completed pursuant to outstanding contracts as at a certain date, net of estimated value added tax and is based on the Group's assumption that the relevant contracts will be performed in accordance with their terms. Backlog is not a measure defined by generally accepted accounting principles. Any modification, termination or suspension of these contracts by the Group's clients may have a substantial and immediate effect on the Group's backlog.

Term of the uncompleted projects may extend, resulting which may also remain in the Group's backlog for an extended period of time beyond what was initially anticipated due to various factors beyond the Group's control.