SSC Held 2021 Annual General Meeting of Shareholders

On June 26, SSC held the Annual General Meeting for 2021 and the First A Shareholders Class Meeting for 2022 and the First H Shareholders Class Meeting for 2022 via video conference. Mr. Chen Xikun, Chairman of the Board, presided over the meeting. Executive Director and General Manager Yuan Jianqiang, Director Zhou Meiyun, Independent Directors Chen Weidong, Dong Xiucheng, Zheng Weijun, Supervisor Du Guangyi, Chairman of the company’s Labor Union Wang Jun, CFO and Secretary of the Board of Directors Cheng Zhongyi attended the meeting. The meeting reviewed and approved the company's 2021 annual report of the board of directors and the annual report of the supervisory committee, the annual financial report and auditor’s report, the election of supervisor, and the authorization of the board of directors to repurchase the company's shares, etc.

In 2021, seizing favorable opportunity in significantly rising oil prices, the company closely focused on ensuring exploration and high-quality development, expanded premium markets, optimized production and operation, reduced costs and expenses, deepened reform and innovation, optimized resource allocation and achieved steady growth in operation. In 2021, the newly signed contract value of the company was RMB70.9 billion, a year-on-year increase of RMB1.1 billion; the revenue was RMB69.53 billion, up 2% YOY; the net profit was RMB180 million, a year-on-year increase of 127.6%, making a good start for the 14th Five Year Plan.

Mr.Chen Xikun said, Year 2022 is the crucial year of realizing our high-quality development. The Company will fully carry out the themed actions of “Keep the entrustment in mind, make new contributions, create new achievements and celebrate the 20th NCPC”, conduct in-depth “Comprehensive Improvement Year” activities, focus on high-quality scale market, accurately optimize resource allocation, continue to increase its efforts in technological innovation, reform innovation and management innovation, comprehensively improve our technical capability, management capability, comprehensive quality and competitiveness and strive to promote the overall improvement of the Company’s development and business performance. Firstly, we have to extend market, increase income and acquire efficiency. Our planned newly signed contract value for 2022 is RMB72 billion. In Sinopec market, we shall do a good job in increasing of reserves discovery and production of oil and gas and construction of the key projects related to the chain of production, supply, storage and sales. For domestic external markets, we shall closely monitor every move of our key markets including CNPC, CNOOC, and PipeChina. For overseas markets, we shall continue expand and strengthen the three major markets, and accelerate the pace of “Going Out” of the technical service business. Secondly, we shall keep bolstering technology innovation and ramp up our scientific strength in support of advancements in our 17 core technologies including measurement while drilling technology and high-temperature and high-pressure logging in order to comprehensively enhance our engineering capability to next level. The Company plans to arrange capital expenditure of RMB4.5 billion on fixed assets in 2022.  Thirdly, we shall coordinate and plan our “dual-carbon” transformation and development. We shall build and operate a new energy R&D center, actively expand CCUS, wind energy, geothermal, environmental protection, underground coal gasification and other new businesses, expand new energy markets and develop high value-added industries. Fourthly, we shall keep deepening our internal reform. We shall comprehensively promote project-based management in our organization to strengthen project cost management and control, improve operational efficiency, coordinate marketing deployment, optimize resource allocation, and facilitate business quality and efficiency upgrades.

Subsequently, the company held the 10th meeting of the tenth session of the Supervisory Committee, and all the supervisors unanimously elected Mr. Wang Jun as the chairman of the tenth session of the Supervisory Committee.

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