Sinopec Kantons Holdings Limited (“Sinopec Kantons” or the “Company”, together with its subsidiariescollectively known as the “Group”) (stock code: 0934) is pleased to announceits unaudited interim results for the six months ended 30 June 2022 (the“Reporting Period”). The Group’s net profit amounted to approximately HK$357million, translating into earnings per share of HK14.35 cents. The board ofdirectors of the Company declares an interim cash dividend of HK8 cents, whichstays the same as the same period last year.

Summary of Financial Dataand Indicators

(1)Liabilities to Assets Ratio being total liabilitiesto total assets

In the first halfof 2022, in the face of a series of severe challenges in the global macroenvironment, the Group made prudent judgments and responded proactively so asto maintain stable production and operations, achieving hard-earned operatingresults. In the first half of the year, firstly, sporadic cases of COVID-19 haveoccurred in multiple places of China, which had an adverse impact on the recoveryof the domestic economy; secondly, the outbreak of the Russia-Ukraine conflictled to a surge in the prices of bulk commodities, which had a significantimpact on the global economy; thirdly, with the US dollar entering into thecycle of interest rate hike, Renminbi has been under certain depreciationpressure in the short term. In the face of the challenges and trials, with the proactiveplanning and right leadership of the board of directors of the Company (the“Directors”) (the“Board”), the Company actively responded to the challenges with its firmconfidence by continuing to strengthen pandemic prevention and control toensure smooth production and operations, whilst continuously enhancing thelevel of refined management, reducing costs, improving quality and efficiency,and constantly optimising management and operations. In addition, the Groupstrived to explore development opportunities to further expand the Group’s scaleof operations and promote corporate sustainable development.

Recognized Investment Losses for Vesta andReduced Potential Risks in Future: In thefirst half of theyear, the Group’s revenueamounted to approximately HK$324 million,representing a year-on-yeardecrease ofapproximately2.20%. As a result of factorssuch as changes in geopolitical situationsexacerbated byRussia-Ukraine conflict whichnegatively affected the business operationand prospects of VestaTerminals B.V.(“Vesta”), a jointventure in Europe of theCompany, the Company recorded the shareof loss of approximatelyHK$281 million forVesta, resulting in a profit of approximatelyHK$357 million forthe six months ended30 June 2022 (the “Reporting Period”).

Focus on ImprovingQuality and Efficiency,Actively Explore Domestic Terminal Investment Opportunities: During the firsthalf of 2022, Huade Petrochemical Co., Ltd. (“HuadePetrochemical”) inHuizhou Daya Bay, awholly-ownedsubsidiary of the Company,actively expandedits business while firmlydefending thebottom line of pandemicprevention andcontrol, and coordinated itsproduction andoperations well to reducecosts at the sametime. Huade Petrochemicalhas seized theopportunity to further expandits business scaleand enhance its profitabilityby entering into along-term contract with athird party forthe use of port facilities andtaking advantagesof the vacant berth slotsat the port tounload oil tankers for anotherthird party. Moreover,it has reduced thedemurrage time of oil tankers so as toreduce the costand energy consumptionper unit of business volume. In the first halfof the year, HuadePetrochemical unloadedapproximately 6.42 million tonnes of crudeoil from 44 oil tankers,representing a year-on-year increase of approximately 3.22%,while ittransmitted approximately 5.78million tonnes of crude oil, representinga year-on-yeardecrease of approximately7.52%. The segment revenue wasapproximatelyHK$324 million, representinga year-on-year decrease of approximately2.20%; while thesegment results fromHuade Petrochemical were approximatelyHK$155 million,representing a year-on-yearincrease of approximately 5.16%.

In the first halfof 2022, the Companyleveraged its advantages of directshareholdermanagement in managing itsoperating entities, namely Zhan Jiang PortPetrochemicalJetty Co., Ltd. (“Zhan JiangPort Terminal”), Qingdao Shihua CrudeOil Terminal Co.,Ltd. (“Qingdao Shihua”),Ningbo Shihua Crude Oil Terminal Co., Ltd. (“NingboShihua”), Rizhao Shihua CrudeOil Terminal Co., Ltd. (“Rizhao Shihua”),Tianjin PortShihua Crude Oil Terminal Co.,Ltd. (“Tianjin Shihua”) and TangshanCaofeidian ShihuaCrude Oil Terminal Co.,Ltd. (“Caofeidian Shihua”), being theassociate andjoint ventures of the Company(collectively, the “Six Domestic TerminalCompanies”) inaccordance with theirown business conditions and operationalcharacteristics bydifferentiated policies soas to further enhance their ability to reducecosts and increaseefficiency. Furthermore, the Six Domestic Terminal Companiescontinued toactively improve theirmarketing capabilities, focus on customerneeds, developmarkets and upgradequality, while learning from each other andcomparing their differences in order tooptimise theirworkflow and reduce energyconsumption and various expense items.In the first halfof the year, the aggregatethroughput of the Six Domestic TerminalCompanies wasapproximately 110 milliontonnes, representing a year-on-year decreaseof approximately9.09%; and the aggregateinvestment return was approximate HK$461 million,representing a year-on-yeardecrease of approximately 3.76% only.

Strive to Resist External Influences andSolve Problems Left Over From History: In the first half of 2022, the globalCOVID-19 pandemic has not beeneffectively controlled and international oilprices stayed at a high level, resulting ina deep backwardation structure in the oilstorage tank market and a greater challengefor the tank rental business. Fujairah OilTerminal FZC (“FOT”), a joint venture of theCompany in the Middle East, made greatefforts to expand its market and identifycustomers while making every effort toprevent and control the spread of COVID-19pandemic, with the average occupancy rateof FOT reaching 98.8% in the first half ofthe year when the overall occupancy rateof oil storage tanks in the region was onlyapproximately 70% in the first half of theyear. However, due to the decline in tankrental rates, FOT achieved an investmentreturn of approximately HK$31.58 millionin the first half of the year, representinga year-on-year decrease of approximately42.58%.In the first half of 2022, as theRussia-Ukraine conflict led to a rapiddeterioration in the operating environmentin Estonian storage area of Vesta in Europe,and together with the impact of changes inthe regional storage market, the Companyrecorded a loss on its interest in Vesta,resulting in an overall investment loss(including share of loss on daily operationsin Vesta) of approximately HK$287 millionin the first half of the year.

The Group has been attaching greatimportance to the subsequent developmentof the joint investment project for theconstruction of oil storage and terminalfacilities in Batam Island, Indonesia (the“Batam Project”). In the second half of2021, the Group engaged two consultingfirms to jointly prepare an updated feasibilitystudy report for the Batam Project, which iscurrently at the assessment and validationstage. The Group will continue to takevarious effective measures to fully protectthe legitimate interests of the Company andits shareholders.

Steady LNG Business Delivered Stable Growth in Results:In the first half of 2022, the Group’s liquefied natural gas (“LNG”)vessel logistics business continued to maintain steady operations and achievedbetter economic results. In the first half of the year, the eight LNG vesselscompleted a total of 53 voyages and generated an investment return ofapproximately HK$55.93 million, representing a year-on-year increase ofapproximately 9.59%.

Outlook: Looking ahead to thesecond half of theyear, as thedomestic economic recovery

becomes more certain, it is expected thatfundamentals of the economy will continueto be positive in the long run. However,the external environment remains relativelyuncertain as the Russia-Ukraine conflict willcontinue to impact energy and food supplies,which will increase the risk of globalinflation and result in further tightening ofmonetary policies in most major economies.

The Board will earnestly implement newdevelopment concepts, continue to put itsgreatest effort in production and operationmanagement, and is committed to achievingthe annual production and operationtargets. At the same time, it will closelytrack the opportunities to expand its corebusinesses, pay attention to the energytransformation dynamics, explore newbusiness development and strive to achievehigh-quality sustainable development of theGroup.