SINOPEC Engineering : Profit Warning

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

中石化煉化工程（集團）股份有限公司

SINOPEC Engineering (Group) Co., Ltd.*

(a joint stock limited liability company incorporated in the People's Republic of China)

(Stock Code: 2386) PROFIT WARNING

This announcement is made by Sinopec Engineering (Group) Co., Ltd. (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

The board of directors of the Company (the "Board") would like to inform the shareholders of the Company and potential investors that, based on the information currently available to the Company, it is expected that the net profit after tax of the Group for the twelve months ended 31 December 2016 will decrease by approximately 45% to 55% as compared to that of the corresponding period in 2015, mainly due to the decrease in investments in the domestic and overseas oil refining, petrochemical and new coal chemical industries as a result of the global economic downturn and the persistence of low global oil prices in 2016, fierce competition in the engineering market and other factors.

This profit warning announcement is only based on the preliminary assessment by the Company with reference to the information currently available and is not based on any data which has been audited or reviewed by the Company's auditors. The actual results of the Group may be different from what is disclosed herein. Further details of the financial information of the Group will be disclosed as and when the annual results of the Group for the year ended 31 December 2016 are published in due course pursuant to the relevant requirements of the Listing Rules.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

Beijing, PRC

13 January 2017

By order of the Board

SINOPEC ENGINEERING (GROUP) CO., LTD. SANG Jinghua

Vice President, Secretary to the Board

As at the date of this announcement, the Company's executive directors are LU Dong, YAN Shaochun, SUN Lili (employee representative director) and WU Derong (employee representative director); the non-executive directors are ZHANG Jianhua and LI Guoqing; and the independent non-executive directors are HUI Chiu Chung, Stephen, JIN Yong and YE Zheng.

This announcement will be available on the website of Hong Kong Exchanges and Clearing Limited (www.hkex.com.hk) and on the website of the Company (www.segroup.cn).