SEG Announced 2025 Annual Results Initiating First Special Dividend Distribution Payout Ratio Reached 88% Newly Signed Orders Exceeded RMB100-Billion Mark for the Second Consecutive Year

HONG KONG, HK / ACCESS Newswire / March 15, 2026 / SINOPEC Engineering (Group) Co., Ltd. ("SEG" or the "Company", together with its subsidiaries collectively known as the "Group") (stock code: 2386) today announced its annual results for the twelve months ended 31 December 2025 (the "Reporting Period").

In 2025, facing the challenges of profound shifts in the global energy landscape and intensifying industry competition, the Group consistently prioritized high-quality development as the overarching principle. We have advanced international operations with greater openness, driven technological innovation with unwavering determination, and rewarded shareholder trust with pragmatic measures-delivering a solid annual performance.

In 2025, the Company achieved operating revenue of RMB70.074 billion and net profit of RMB1.807 billion. The Board consistently adheres to the core principle of "investor-centricity," sharing the fruits of high-quality development with all shareholders through a high dividend policy. A final dividend for 2025 of RMB0.104 per share is proposed, representing a base dividend payout ratio of 65% for the full year. To further demonstrate unwavering confidence in long-term development and safeguard shareholder returns, the Company initiated our first special dividend distribution, proposing an additional special dividend of RMB0.094 per share, resulting in a total distribution of RMB0.198 per share with the final dividend on a combined basis. Including the interim dividend already paid, the total dividend per share for the whole year amounts to RMB0.358, representing an effective payout ratio of 88%, maintaining the same dividend per share as last year.

Operational quality and efficiency were steadily improved, while development resilience continues being strengthened.

Market scale maintained steady growth. New orders signed throughout the year reached RMB101.248 billion, remaining above the RMB100 billion mark for the second consecutive year, which demonstrates a positive trend of "steadily increasing total volume, continuously optimized structure, and accelerated expansion into front-end business segments." International operations improved in both quality and speed, establishing a diversified and balanced layout where Sinopec markets, non-Sinopec markets and international markets each account for one-third of the portfolio, significantly enhancing risk resilience. Breakthroughs were achieved in high-end business segments. The high-level front-end engineering advantage was further consolidated, with the successful signing of landmark overseas front-end projects such as the FEED+ convertible EPC contract for the Saudi ACWA large-scale green hydrogen project. All five engineering subsidiaries achieved their first overseas front-end business contracts within the year, comprehensively enhancing source competitiveness. Comprehensive strengths have become more apparent. The unique competitive advantage of "Global Rules + Chinese Efficiency" has been fully demonstrated, with our integrated engineering service capabilities earning high recognition from global clients. Currently, front-end and EPC contracts account for over 80% of our order backlog, and the order structure continues to optimize, effectively stimulating the continuous optimization of the revenue structure, demonstrating strong operational resilience in intense market competition and achieving both qualitative enhancement and reasonable quantitative growth.

Technological innovation capabilities remain at the forefront, driving significant progress in new industrialization.

Steady progress in technology-driven value creation. Throughout the year, technology development and licensing contracts totaling RMB1.013 billion were signed, demonstrating a steady enhancement in the direct efficiency-generating capacity of technology. The innovation ecosystem has expanded comprehensively. Adhering to the principles of "open cooperation and integrated innovation", we deepened industry-academia-research integration with top research institutes and universities, and collaborated with overseas clients and partners to promote the global deployment of our leading technologies. We successfully hosted the 12th World Congress of Chemical Engineering SubForum 12 on "Process Industry Innovation and Process System Engineering Reinvention", gathering nearly 200 global experts, scholars, corporate representatives, and industry elites in the chemical engineering eld for exchange of insights. Accelerating implementation of digital and intelligent transformation. The "Guidelines for Comprehensively Advancing the Company's Leadership in the New Industrialization of the Engineering Construction Industry" were released, yielding replicable and scalable outcomes in intelligent design, machine-based manufacturing, and digital delivery, etc. The engineering construction model is accelerating its transformation and upgrading toward "standardized lean design + factory-based intelligent manufacturing + modular installation". AI applications moved into practical implementation: On the design side, knowledge graphs and generative design significantly boosted efficiency; on the management side, the intelligent supply chain management system for the entire lifecycle advanced in tandem with smart construction site development; on the construction side, intelligent equipment like trackless crawler welders and multi-axis welding robots saw widespread adoption.

Corporate governance continues improving, and the quality of the Company steadily increases.

The governance system is standardized and efficient. The convert of China National Petroleum Corporation's domestic shares to the H shares on the public market was successfully completed, further optimizing our equity structure and governance framework. A comprehensive amendment to the Articles of Association was smoothly completed, with the Audit Committee of the Board fully assuming the functions of the Supervisory Committee. Industrial layout has been expanded. Sinopec (Guangdong) Environmental Technology Co., Ltd. was established as a specialized environmental governance platform, contributing to the protection of clear waters, blue skies, and clean soil. The acquisition of equity in East China Pipeline Design and Research Institute was completed, further enhancing comprehensive design capabilities in pipeline storage and transportation. ESG performance remains leading. Deepened SINOPEC's social responsibility brand building by continuing the "Immersive Public Safety Experience and Emergency Science Outreach Program," demonstrating state-owned enterprise responsibility. Maintained the industry's highest AA-level ESG rating from Wind Information and received the "China Listed Companies ESG Annual Best Practice Award" for two consecutive years.

Mr. JIANG Dejun, Chairman of SEG, said: "The Company has now completed the drafting of the "15th Five-Year Development Plan Outline," which has been reviewed and approved by the Board. Seven major development strategies have been made: value-oriented, innovation-driven, cost-leadership, digital & smart empowerment, green & clean, globally development, and integration symbiosis. Research has been completed on eight key initiatives: development indicator system, domestic market expansion, international operations, construction business transformation, technological innovation, green low-carbon and energy conservation, digital-physical integration, and smart manufacturing. By 2030, the Company is expected to embody the fundamental characteristics of a world-class technology-driven engineering enterprise, evolving into an engineering group distinguished by robust technological capabilities, exceptional management expertise, integrated synergistic development, effective risk prevention and control, and will significantly enhance our overall value. The Company endeavors to achieve its long-term goal of main business revenue exceeding RMB100 billion by 2035, with overseas business revenue consistently accounting for over one-third of total revenue, significantly enhancing the international competitiveness of core technologies, and maintaining a leading brand influence among international engineering companies.In 2026, the Group will implement the Board's strategic decisions by focusing on advancing initiatives such as: strengthening strategic guidance and integrated coordination; continuously promoting innovation-driven development, lean management, digital & smart empowerment, and green low-carbon practices; providing high-level support for the transformation and upgrading of the energy and chemical industries; setting high standards for leading the new industrialization of the engineering construction sector; advancing the internationalization of engineering construction enterprise operations with high quality and efficiency; and achieving diversified value creation for the listed company with high efficiency. These efforts will enable the Group to take more solid strides toward "Building a world-leading technology-driven engineering company".

Business Review and Highlights

QHSE performance remained sound.

During the Reporting Period, the Group was executing 1,888 projects, with an average daily personnel of about 120,000 on site. As at the end of the Reporting Period, the accumulated safety manhours reached 359 million, and no major safety, quality or environmental incidents occurred.

During the Reporting Period, the Group fully carried out the demonstration construction of safety standardized work teams, continued to promote the certification of team leaders and three types of key personnel from subcontractors, and achieved full coverage of training for strategic subcontractors. Focusing on key links such as design, verification and engineering changes, the Group launched special quality improvement initiatives to effectively reduce HSE risks at the source. It actively promoted the construction of smart construction sites and promoted the application of advanced technologies and equipment including intelligent violation identification systems and electronic fences. The Operation Supervision Platform of "Divisional Work & Sub-divisional Work with Higher Risk" was launched to implement three-level control and full-process information-based dynamic supervision. A problem database was established to strengthen closed-loop risk management. The Group deepened its "comprehensive health" management, carried out the "Health Management Year" campaign, and established an employee health consultation and service platform. Centering on the four goals of carbon reduction, pollution abatement, efficiency improvement and green enhancement, the Group launched the second phase of the Green Enterprise Initiative, implemented energy conservation and emission reduction measures from the design stage, fully adopted green construction, and continuously enhanced its sustainable development capacity.

Market development achieved robust growth on both volume and quality

During the Reporting Period, the value of new contracts signed by the Group was RMB101.248 billion. Among which, the value of newly signed domestic contracts was approximately RMB63.248 billion, and the value of newly signed overseas contracts was approximately USD5.429 billion.

In the domestic market, the Group deeply engaged with strategic clients, strengthened integrated promotion efforts, and continuously expanded market share through comprehensive solutions. While enhancing our core advantages in traditional businesses, we continuously expand business into new technologies, new materials, new energy and other emerging sectors. During the Reporting Period, the representative newly signed domestic contracts included the EPC contract for the Sinopec Maoming Ethylene Project with a total contract value of approximately RMB11.821 billion; the EPC contract for Sinopec Luoyang Million-ton Ethylene Project (the "Luoyang Ethylene Project") with a total contract value of approximately RMB6.553 billion; the EPC contract for the demonstration project of coal-grading clean and efficient transformation of 15 Million-ton per year by Shaanmei Yulin Chemical (the "Shaan Coal Yulin Coal Chemical Project") with a total contract value of approximately RMB2.772 billion; and the EPC contract for the MTO and olefin separation unit of China Energy Shenhua Baotou Coal-to-Olefin Upgrading Demonstration Project (the "Shenhua Baotou MTO") with a total contract value of approximately RMB2.367 billion.

During the Reporting Period, the Group signed 348 new contracts in the emerging business sector with a new contract value of approximately RMB11.0 billion. Among which, 40 contracts were from the clean energy and new energy fields, with a new contract value of approximately RMB1.8 billion; 308 contracts were from new materials, new technologies, energy conservation, environmental protection and other emerging fields, with a new contract value of approximately RMB9.2 billion.

In the overseas market, the Group accelerated the development of a more diversified, balanced and resilient global market network, and strengthened strategic cooperation with international peers and enhanced high-level mutual visits, promotions and communications with strategic clients. During the Reporting Period, the representative newly signed overseas contracts included the EPC contract for the Algerian Hassi Refinery Project with a contract value of approximately USD2.058 billion; the EPC contract for the polyethylene and utilities project of the Silleno Petrochemical Complex Project in Kazakhstan (the "Kazakhstan Silleno PE & UIO Project") with a contract value of approximately USD1.902 billion; the EPC contract of Haradh GOSP-3 oil and gas separation and stimulation project of Saudi Aramco (the "Saudi Haradh Project") with a contract value of approximately USD707 million; and the EPCC contract of the Arzew Refinery Reformation Project in Oran, Algeria (the "Arzew Refinery Project") with a contract value of approximately USD433 million.

In regards to its front end business, the Group entered into contracts, including a FEED + convertible EPC contract for the ACWA Green Hydrogen Green Ammonia Project in Yasref, Saudi Arabia; a FEED + convertible EPC contract for the UAE NGL Project; the NKNK Ethylbenzene Styrene technology transfer and process package design; the Kazakhstan sulfuric acid foundation design; the feasibility study of Vietnam biomass gasification to jet fuel project; the engineering design for the Sinopec Hunan Petrochemical Yueyang 1 Million-ton per year ethylene refining and chemical integration project (the "Yueyang Ethylene Project"); the engineering design for the Sinopec Qilu Petrochemical local oil refinery transformation and upgrading technology conversion project (the "Qilu Upgrade Project"); and the engineering design for Shenhua Yulin Circular Economy Coal Comprehensive Utilization Project (the "Shenhua Yulin Coal Chemical Project"), and shall continue to move towards the front end of the industrial chain and the high end of the value chain.

During the Reporting Period, the Group's major projects under implementation were as follows:

• Yasref Green Hydrogen Project (FEED) of Saudi Arabia: with an overall design work progress of the project of over 30%.

Note: "FEED" refers to front end engineering design contracting; "EPC" refers to engineering, procurement and construction contracting; "BEPC" refers to basic design + EPC; "EPCC" refers to EPC and commissioning contracting; and "C" refers to construction contracting.

Continuous progress in technology innovation

During the Reporting Period, the Group continuously expanded open cooperation. The Group has entered into 3 strategic cooperation agreements with China General Nuclear Power Corporation, Sinopec Qingdao Research Institute of Safety Engineering Co., Ltd., and Guangdong University of Technology, and has organized technical exchanges with 20 scientific academies including relevant institutes of the Chinese Academy of Sciences, Tsinghua University, Beijing University of Chemical Technology, and other universities, and deepened cooperation in areas such as carbonyl synthesis, PEEK, new types of electrolyzer, green chemistry, energy conservation and carbon emission reduction, and CCUS. We also explored technology development and collaboration with companies such as NEXANT, SABIC, ADNOC, SOCAR and TR, so as to advance the global reach of our advantageous technologies. We successfully hosted the 12th World Congress of Chemical Engineering and the 21st Asian Pacific Confederation of Chemical Engineering Congress, Sub Forum 12 on "Process Industry Innovation and Process Systems Engineering Reengineering". The meeting focused on topics such as intelligent manufacturing, digital enablement, and green and low carbon development, attracting nearly 200 global experts, scholars, corporate representatives, and industry leaders for joint exploration of new paths for technological innovation and high quality growth in the industry.

During the Reporting Period, the Group has received a total of 37 awards for scientific and technological progress at the provincial/ministerial level and above.

During the Reporting Period, the Group's major achievements in technological innovation included: (1) The key technology development and demonstration project of Maoming Vinyl Elastomers successfully produced qualified products. The unit has been calibrated at full load, with all indicators exceeding design specifications. (2) The first feeding and commissioning of the complete set of technology for reactor-made polypropylene alloys in Zhenhai was successfully completed. (3) The development and application of the complete set of deoiled asphalt gasification technology has achieved all designed targets. (4) The whole process of the development and demonstration project of the complete set of technology for PBST degradable material industrialization at Hainan Refinery was successfully completed, producing qualified products. (5) The succinic acid plant in Qingdao, which adopts the maleic anhydride hydrogenation process, has successfully produced qualified succinic anhydride products, and the unit is operating stably.

During the Reporting Period, the Group signed 309 new technology development contracts of various types with a total contract value of RMB532 million, and 138 new technology licensing and technology transformation contracts with a total contract value of RMB481 million.

During the Reporting Period, the Group filed 762 new patent applications, of which 583 applications; and 307 newly licensed patents, of which 174 patents. As at the end of the Reporting Period, the Group had 4,580 valid patents, 2,440 of which were invention patents.

Leading new industrialization in the engineering and construction industry

The Group systematically advanced innovation in engineering construction models. It actively promoted the application of advanced technologies and equipment, steadily improved on the traditional construction methods, and achieved a transformation from conventional models to a model of "standardized lean design, factory based manufacturing, and modular installation". This transformation has established a new pathway to industrialization, defined by the distinctive characteristics of engineering construction.

Strengthening integration synergy across the entire industry chain. We have deepened our integrated capabilities across collaborative design, supply chain management, constructability studies, and project interface management. We have reinforced the standardization of business processes across the value chain, enhanced data interconnectivity, and advanced AI-enabled applications of tool chains. We have optimized the collaborative working mechanisms within engineering construction integration, enabling us to deliver better value-added services to customers throughout the entire project life cycle.

(1) On the design side, the Group developed a knowledge graph to enhance efficiency, explored generative design transformation, and conducted intelligent research in 13 key areas, including ethylene devices and HAZOP safety. Professional models were established for intelligent review, process safety analysis, structural design, and other applications. Significant progress was achieved in plant-wide process optimization, intelligent drawing review, and 3D model verification. (2) On the management side, the Group leveraged on digital technologies to strengthen supply chain collaboration and established an intelligent supply chain management system covering the entire project lifecycle. It coordinated the development of a unified platform of operation management, project management, and construction management, reinforced the "data + platform + application" model, and advanced the development of standardized smart construction sites. (3) On the application side, the Group promoted research into domestic industrial software, including piping, physical property libraries, and process simulation, while deepening the application of 3D design software in civil engineering and equipment.

Further enhance the empowerment capability of digital intelligence. We are vigorously advancing technology research and development as well as intelligent assembly, with a focus on the research and development, promotion and application of special technology in modular intelligent manufacturing, factory-style prefabrication production lines, digital simulation of lifting and transportation, and intelligent equipment. By transforming the production organization model through "machine OEM," we have accelerated the R&D of intelligent equipment and the construction of smart production workshops.

During the Reporting Period, the Group compiled a list of 86 high-efficiency construction equipment applications and published the Application Guide for Intelligent Equipment, covering scenarios such as welding, commissioning, inspection, supply chain management, and green manufacturing. The assembly test of the Qingdao intelligent pipeline prefabrication production line was completed, and the application rate of automatic welding for process pipelines rose to 26%. Railless crawling welding machines and nine-axis/six-axis pipeline welding robots were widely deployed, achieving a first-pass success rate of 99.8%. Pilot initiatives included full-process robotic operations of anti-corrosion inside tanks, intelligent inspection robot dogs, and safety monitoring systems. New energy construction machinery, such as electric forklifts and aerial work platforms, was also promoted. The Group completed the overall design of the 14,000-ton ring-rail crane, expanded the application of AI in scheme optimization and construction scheduling, and launched the "smart lifting" platform to strengthen digital simulation capabilities for lifting and transportation.

Propelling intelligent production, operation, and maintenance. The Group expanded the scope and depth of digital factory delivery, steadily advancing high-quality digital delivery across full volume and all elements. A "digital twin" intelligent O&M platform was established, integrating dynamic operational data with mechanism models to enable remote diagnosis, predictive maintenance, and process optimization. We accelerated the development of remote technical support centers and a remote intelligent support service platform for replicable applications. At the same time, the Group advanced research on digital twins and remote intelligent O&M, while planning for a comprehensive intelligent O&M platform system. These initiatives continuously enhance intelligent O&M service capabilities across the entire equipment lifecycle, creating high value-added operational assurance for customers.

Business Outlook

The market development targets of the Group for 2026 are: newly signed contract amount of RMB55 billion in domestic market and USD5 billion in overseas market, with particular emphasis on the following tasks at the same time:

Step up market development efforts.

We will firmly move toward the front end of the engineering service value chain, focusing on enhancing high-end services such as consulting, FEED and detailed design, as well as procurement capabilities, to add more technological value to engineering services. In the domestic market, we will continue to consolidate our core businesses in petrochemicals, coal chemical industry, natural gas and storage & transportation. We will expand into new sectors including green hydrogen, green ammonia, green alcohol, wind, solar and nuclear power; strengthen new materials businesses such as electronic chemicals, high-performance engineering plastics and carbon fiber composites; advance the development of bio-jet fuel, bio-based chemicals, and sulfur, phosphorus and synthetic ammonia industrial chains; and expand the scale of environmental governance, energy conservation and carbon reduction, circular economy and safety technology services. In overseas markets, we will deepen our presence in competitive regions such as the Middle East, Central Asia and North Africa, explore emerging markets, and build a diversified and balanced global footprint. Building on our traditional strengths in the petrochemical industry, we will accelerate expansion into new sectors such as new energy and low-carbon engineering.

Step up project management and control.

We will strengthen planning at the project inception stage and improve the dynamic monitoring mechanism for full life cycle operational risks. We will enhance whole-process project control to continuously improve performance capability and profitability. We will strive for better QHSE performance to consolidate the foundation for safe, environmentally friendly and green operations. We will upgrade the application of artificial intelligence, increase investment in design optimization and on-site project management, and vigorously promote the application of automatic welding, welding robots and other equipment, empowering project management efficiency and capacity with digital and intelligent technologies.

Step up collaborative innovation.

We will fully integrate innovation resources, deepen cooperation with research institutes, universities and enterprises, and expand the supply of high-quality technologies. We will leverage our integrated strengths in R&D, design, manufacturing and construction. Focusing on engineering technology innovation and achievement transformation, we will coordinate the advancement of the R&D and manufacturing of new processes, patented and proprietary equipment, and continuously improve the Company's profitability. We will ensure the implementation, commissioning, demonstration and iteration of major scientific and technological projects, and keep strengthening technological reserves. We will step up the application and brand promotion of competitive technologies, push for the global adoption of our technologies and standards, lead and create markets with technological strengths, and steadily enhance our industrial influence.

Comprehensively enhance risk prevention and control capabilities.

We will strengthen risk management and further promote the integration of the internal control system with compliance and risk management systems. We will intensify project risk prevention and control, advance risk management to the project's earlier stage, strictly control project approval, prudently promote project decision-making, and implement closed-loop management of risk response. We will enforce boundary control and rigid constraints on key financial indicators, dynamically monitor the financial status of key projects, accurately identify and provide timely alert against various financial risks, and ensure that risks related to funds, exchange rates and taxation are generally stable, safe and controllable, so as to prevent and defuse various external risks.

Summary of Financial Data and Indicators Prepared in Accordance with International Financial Reporting Standards ("IFRS")