Company Overview

Sinopec Kantons Holdings Limited (“Kantons Holdings”) was established in Bermuda in March 1998 and was listed on the Hong Kong Stock Exchange on 25 June 1999. Currently, the total share capital of Kantons Holdings is 2,073.66 million shares, of which 1,500million shares are held by Sinopec Kantons International Limited, representing 72.34% and 573.66 million shares are public float, representing 27.66%.

The entire share capital of Sinopec Kantons International Limited is held by China International United Petroleum & Chemical Co.Ltd., a whole owned subsidiary of China Petroleum & Chemical Corporation (“Sinopec”).

Sinopec Kantons Holdings Limited is a logistics and trading company with two wholly-owned subsidiaries: Sinomart KTS Development Limited and Kantons International Investment Limited. Their principal activities are: operating crude oil loading, storage and transmission facilities in the PRC and trading of petroleum and petroleum products.

As the only red-chip company of Sinopec currently listed in Hong Kong, Sinopec Kantons Holdings Limited is a key representation of Sinopec's diversified capital. The business results of the company were outstanding since its listing and have contributed to the expansion of the state-owned assets. In view of the management excellence and business results of the company, Kantons Holdings was included as a constituent stock of the Hong Kong China-Affiliated Corporations Index and the Hang Seng Composite Index in September 2000 and August 2003 respectively.

Kantons Holdings will continue with the management philosophy of competition and openness, the business strategies of resources and market expansion, cost reduction and prudent investment, the operation goal of maximizing return on investment and shareholders' return, the operation mechanism of market-oriented external operation and synergetic internal operation, and the operation principle of standardization, discipline and integrity, and strive to establishing Kantons Holdings into a competitive logistics and trading company with outstanding principal operations, quality assets, scientific management and prudent finance.