SINOPEC Engineering : PROPOSED APPOINTMENT OF A SUPERVISOR AND RESIGNATION OF SUPERVISORS

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中 石 化 煉 化 工 程（ 集 團 ）股 份 有 限 公 司

SINOPEC Engineering (Group) Co., Ltd.*

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

(Stock Code: 2386)

PROPOSED APPOINTMENT OF A SUPERVISOR

AND

RESIGNATION OF SUPERVISORS

Proposed Appointment of a Supervisor

SINOPEC Engineering (Group) Co., Ltd. (the "Company") held the sixth meeting of the Third Session of the Supervisory Committee of the Company (the "Supervisory Committee") on 20 March 2021. The Supervisory Committee approved the proposed appointment of Mr. ZHANG Xinming as a non-representative of the employees supervisor of the Company for a term commencing from the date of appointment and ending on the expiry of the term of the Third Session of the Supervisory Committee. Relevant proposals will be put forward at the annual general meeting of the Company for the year 2020 ("AGM") for shareholders' consideration and approval. For details, please refer to the circular of the Company and the notice of the AGM of the Company both dated 22 March 2021.

The Company will enter into a service contract with Mr. ZHANG Xinming upon his proposed appointment as a supervisor being approved at the AGM, for a term commencing from the date of appointment and ending on the expiry of the term of the Third Session of the Supervisory Committee. Mr. ZHANG Xinming will receive remuneration for serving as a supervisor of the Company under his service contract, which will be determined in accordance with the relevant laws and regulations of the People's Republic of China and the internal measures on remuneration of the Company. Pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"), the Company will disclose in its annual reports the remuneration received by Mr. ZHANG Xinming from the Company during the relevant reporting period.

*

For identification purposes only

Biographical details of Mr. ZHANG Xinming are set out below:

Mr. ZHANG Xinming (張新明), aged 54, is the chairman of Sinopec Shanghai Engineering Co., Ltd. (中石化上海工程有限公司) and a vice president of the development and planning department of China Petrochemical Corporation (中國石 油化工集團有限公司發展計劃部). Mr. ZHANG Xinming is a senior engineer with a university diploma and an MBA degree. Mr. ZHANG served as the vice president of Sinopec Luoyang Engineering Co., Ltd. (中石化洛陽工程有限公司) and Sinopec Guangzhou Engineering Co., Ltd. (中石化廣州工程有限公司) from August 2013 to March 2015; served as the deputy director of the development and planning department of China Petrochemical Corporation (中國石油化工集團有限公司發展計劃部) from March 2015 to December 2019; held the position of vice president of the development and planning department of China Petrochemical Corporation (中國石油化工集團 有限公司發展計劃部) since December 2019; and served as the chairman of Sinopec Shanghai Engineering Co., Ltd. from September 2020.

As at the date of this announcement, save as disclosed in this announcement, Mr. ZHANG Xinming did not serve as a director in other public companies the securities of which are listed on any securities market in Hong Kong or overseas in the past three years. As at the date of this announcement, Mr. ZHANG Xinming does not (i) hold any other positions with the Company or its subsidiaries, (ii) have any relationship with any director, supervisor, senior management or substantial or controlling shareholder of the Company (as defined under the Listing Rules), or (iii) have any interest in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).

Save as disclosed in this announcement, the board of directors of the Company (the "Board") of is not aware of any other matter in relation to the proposed appointment of Mr. ZHANG Xinming as a supervisor of the Company that needs to be brought to the attention of the Shareholders, or any other information that is required to be disclosed pursuant to Rules 13.51(2)(h) to (v) of the Listing Rules.

Resignation of Supervisors

The Board hereby announces that the Supervisory Committee was recently notified by Mr. WANG Guoliang of his resignation as a non-representative of the employees supervisor in consideration of his age and by Mr. YE Wenbang and Mr. WU Jibo of their resignation as non-representative of the employees supervisors in consideration of their respective work adjustment. The resignation of Mr. WANG Guoliang, Mr. YE Wenbang and Mr. WU Jibo shall become effective when it is tendered to the Supervisory Committee.

Mr. WANG Guoliang, Mr. YE Wenbang and Mr. WU Jibo have confirmed that they have no disagreement with the Supervisory Committee and there is no matter relating to their resignation that needs to be brought to the attention of the shareholders of the Company.

Mr. WANG Guoliang, Mr. YE Wenbang and Mr. WU Jibo were diligent and responsible during their terms of office. The Company and the Supervisory Committee would like to take this opportunity to express gratitude to Mr. WANG, Mr. YE and Mr. WU for their hard work and contribution to the Company.

According to Article 125 of the articles of association of the Company, the Supervisory Committee shall consist of seven supervisors. The Supervisory Committee will make its best endeavor to identify another two suitable candidates for supervisors as soon as practicable and will make further announcement(s) in due course.

By Order of the Board

SINOPEC ENGINEERING (GROUP) CO., LTD.

Jia Yiqun

Chief Financial Officer, Company Secretary

Beijing, the PRC

22 March 2021

As at the date of this announcement, directors of the Company are: SUN Lili#, XIANG Wenwu#, JIANG Dejun#; WU Wenxin*, HUI Chiu Chung, Stephen+, JIN Yong+ and YE Zheng+.

This announcement is available on the website of Hong Kong Exchanges and Clearing Limited (www.hkex.com.hk) and on the website of the Company (www.segroup.cn).