Sinopec Announces Investment Loss of NT$1.804 Billion on Investment in China Engineering Corporation under IAS 28 Paragraph 22

1. Date of Event: June 26, 115

2. Company Name: China Petrochemical Development Corporation

3. Relationship with Company (Please enter '本公司' or 'Subsidiary'):本公司 (本公司)

4. Cross-shareholding Ratio: Not applicable

5. Reason for Occurrence: The Company's investment in China Engineering Corporation has been assessed as having lost significant influence under International Accounting Standard No. 28.

6. Response Measures:

1. In accordance with the provisions of International Accounting Standard No. 28, the Company's investment in China Engineering Corporation will be reclassified from 'Investments accounted for using the equity method' to 'Financial assets at fair value through other comprehensive income - non-current'. The asset shall be classified under IFRS 9 Paragraph 4 and measured under Paragraph 5 as a financial asset measured at fair value through other comprehensive income. An investment loss of NT$1.804 billion is recognized pursuant to IAS 28 Paragraph 22. As this amount is self-calculated by the Company and has not yet been reviewed by auditors, the actual figure will be subject to the financial reports officially announced by the Company in accordance with regulations.

2. The adjustment made under IAS 28 does not involve actual cash outflow and therefore has no impact on the Company's operating funds or cash flows.

7. Other Matters to be Disclosed (If the entity involved in the event or resolution is a publicly issued company or above, this material information also qualifies as a matter under Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act that significantly affects shareholders' equity or securities prices): None