SINOMEC and China Kingho Sign A Letter of Intent

On October 20,2016, SINOMEC and China Kingho signed the letter of intent for investment and EPC contracting for Phase II of Xinjiang Kingho Coal-to-Gas Project in Beijing. Mr. Liu Bin, Chairman of SINOMEC, Mr. Zhu Haixing, CEO of SINOMEC, Mr. HuoQinghua, Chairman of China Kingho, Mr. Xu Zhong, Vice President of ChinaKingho, Mr. Liu Zirong, Vice President of China Kingho, and Mr. Rao Guoping, President of CDB Xinjiang Branch, Mr. Bai Hailong, President of CDB Yili Branchand other financial institutions leaders attended the signing ceremony.

China Kingho is alarge-scale specialized modern enterprise mainly for production of coal-basedclean energy and coal-based fine chemicals, and has several national-level circular economy demonstration parks in Inner Mongolia, Qinghai, Ningxia and Xinjiang.

At the signing ceremony, Mr. Liu Bin said that the strategic investment and EPC contract ingare the basis for cooperation between two parties, and both parties should closely combine their respective advantages and promote the construction of the project, and achieve a win-win situation through this cooperation. Mr. Huo Qinghua said that China Kingho was sincerely welcoming the partipitation of SINOMEC, and both parties should give full play to their respective advantages in terms of industry and resources and jointly promote the cooperation process and ultimately maximize the value of investment.

Coal-to-gas is a national energy strategy, in line with the direction of the national energy development. The signing of the letter of intent is the result of the joint efforts of both parties and the first step for further cooperation in the future. Both parties will jointly promote the development of the project in line with mutual supports, close cooperation, resource sharing and a win-winpolicy. In the future, SINOMEC and China Kingho will go hand in hand, continue to increase investment and research and development in the field of cleanenergy, follow the “green, safe and efficient” development concept and build a new clean energy industry chain.