On 19 March 2025, Sinopec Oilfield Service Corporation held 2024 Annual Results Announcement in Hong Kong. Chairman and Secretary of the Party Committee Mr. Wu Baizhi, General Manager Mr. Zhang Jiankuo, Employee Representative Supervisor Mr. Zhang Bailing, CFO and General Counsel Mr. Cheng Zhongyi, Secretary to the Board Mr. Ke Yuehua attended the meeting. At the meeting, the management introduced the 2024 annual results and 2025 outlook detailedly, then answered the questions in depth that investors and medias were interested in. 74 of institutional investors, analysts and journalists attended this announcement.

In 2024, the Company adhered to the principle of maintaining stability while making progress and enhancing quality while moving forward. Efforts were focused on strengthening technology, expanding market, reducing costs and controlling risks, and achieved new improvement in the level of operational efficiency, quality of development was elevated to a new level. We continued to optimize the production operation and market layout, expanded the market with both quality and quantity, further expanded the high-quality scale market, improved the proportion of high-end business in overseas markets, deepened the optimization of human resources, equipment and other resources, tapped the potential of cost reduction, firmly promoted scientific and technological innovation, and steadily implemented the development of characteristic business. The Company promoted the transformation of innovation advantages into industrial advantages, achieved better growth in major production and operation indicators, and effectively promoted high-quality development. In 2024, the Company’s consolidated revenue under PRC ASBE was RMB81.1 billion, representing a year-on-year increase of 1.4%, and net profit attributable to shareholders of the Company amounted to RMB630 million, representing a year-on-year increase of 7.2%. Basic earnings per share was RMB0.033, representing a year-on-year increase of RMB0.002. The total cumulative amount of newly signed contracts of the Company reached RMB91.2 billion, representing a year-on-year increase of 10.7%, the best level since the beginning of history

 Mr. Wu Baizhi said, looking forward to 2025, the world economy will continue to recover moderately, and the supporting conditions and basic trends for the long-term improvement of China's economy remain unchanged. The global demand for crude oil will continue to grow which is expected to support the investment in upstream exploration and development to keep stable. In 2025, China will formally implement the Energy Law and the New Mineral Resources Law, and formulate a medium- and long-term action plan for increasing oil and gas reserves and production. At the same time, China is vigorously developing green low-carbon, new energy, CCUS and other businesses, ushering in rare opportunities for new business development. Overall, the oil service industry is facing more favorable factors than unfavorable conditions, the industry's prosperity is expected to continue. In 2025, the Company will focus on its vision and goal of becoming a world-class technology-leading oilfield service company by seizing development opportunities, overcoming challenges actively, cultivating and creating new productivity, ensuring the supply of oil and gas and following the green development path, promoting high-quality corporate development with full strength.

Firstly, we will make greater efforts to promote scientific and technological innovation. By upholding the concept of "customer-oriented and value creation", increasing efforts in "establishing an enterprise through technology and revitalizing an enterprise through science and technology", giving full play to integrated advantages, aiming at meeting the needs of oil and gas exploration and development and solving complex problems, accelerating the breakthrough of key technical equipment, accelerating the transformation and application of innovation achievements, accelerating the pace of informatization and intelligence, the ability to solve problems in one basket will be comprehensively enhanced and core competitiveness will be increased. More efforts will be used to expand the quality market.

Secondly, we will make greater efforts to expand the high-quality market. the Company will deepen efforts in the main market base of Sinopec, and steadily increase the investment conversion rate, market share and team utilization rate; optimize the domestic and external markets to increase efficiency, consolidate the large-scale markets such as PetroChina, CNOOC and PipeChina, and expand the asset-light and high value-added technical service market ; we will strengthen overseas markets and move into high-end sectors, vigorously develop key markets such as Saudi Arabia, Kuwait and Ecuador, expand high-end technical services and comprehensive reservoir services such as general contracting of drilling services, directional wells and logging, and organize groups to go overseas to develop markets and open up new space. 

Thirdly, we will make greater efforts to improve the quality and efficiency of operations. We will strengthen lean management, coordinate and promote the optimization of all factors and cost reduction along the whole chain. By deeply optimizing human resources, streamlining organizational teams and increasing efforts in outward business contracting, a long-term mechanism for quality and efficiency enhancement and value management will be established. Through in-depth optimization of equipment resources, promoting efficient operation of asset operating branches, smoothening the channels for asset allocation and revitalization, the cooperation model of "manufacturing + service + industry and financial collaboration + circular economy" will be explored to achieve accurate allocation of incremental assets, effective revitalization of existing assets and rapid liquidation of reduced assets to accelerate the asset operation and efficiency creation capabilities. 

Fourthly, more efforts will be exerted to cultivate new industries. We will accelerate the deployment of new fields and open up new tracks, promote new-quality productivity through high-level scientific and technological self-reliance, accelerate breakthroughs in technologies such as smart drilling, smart fracturing and hot dry rock geothermal power generation, and strengthen the technological research and applications of CCUS industry chain, "Beidou+" and high temperature measurement and control while drilling, to create a new pattern of profit growth, and form a new landscape of development with equal emphasis on integrating traditional and emerging industries and complementary development.(Office of the Board)