Sinopec PAO fully synthetic base oil project is an important measure for the Group to promote the transformation and development of refining and deepen the adjustment of product structure. In order to enhance the brand image of Sinopec, highlight the technological leadership of Sinopec, and expand the ""circle of friends"" of Sinopec, with the support and guidance of relevant departments of the Group such as Refining Division and the Ministry of Science and Technology, Maoming Petrochemical, the Academy of Stone Sciences, Lubricating oil Company and other joint efforts, the advantages of the Group's ""large corps operation"" are given full play. It created the ""agent sales model"" and the new model of ""start, adjust and sell"" of high-end chemical products, and successfully realized the barreled sales of well-known lubricant production enterprises outside the system on December 15.

Set up a production and marketing research team to enable product promotion and market development. PAO (Poly α Olefin products have high technical content and are difficult to develop in the market. The Oil refining division connects production and marketing, and the Ministry of Science and Technology promotes technology and coordinates internal resources of the group company. The leaders of the Oil Refining Division led a team to the enterprise to understand the situation and help solve the urgent and difficult issues. The Ministry of Science and Technology coordinated the scientific research institutes to provide technical support on the key problems of PAO, and jointly gave full play to the advantages of Sinopec's platform, so that the production and marketing research team was quickly formed and a weekly communication mechanism was established to promote the production and sales of PAO industrial products.

Production enterprises overcome difficulties to ensure the success of PAO industrial products off the production line. Since the project started on September 25, 2020, the main leaders of Maoming Petrochemical have set up a special work leading group to overcome difficulties such as tight deadlines, heavy tasks and the impact of the novel coronavirus pneumonia epidemic, and take the initiative to coordinate and work beyond normal levels to ensure deep cross-cutting and efficient progress of various works.

Research and development units go all out to break through the technical threshold. In the process of promoting the project, a multi-departmental and multi-professional joint team has been formed to carry out collaborative innovation research and develop complete sets of low-viscosity PAO technologies with independent intellectual property rights. Since July 2021, the PAO technical team of the Academy of Stone Sciences has been stationed at the site for a long time, participating in the whole process of installation construction and production optimization, and cooperating with Maoming Petrochemical Company to successfully develop and produce low-viscosity PAO series of high-end products, whose performance indicators have reached the international leading level.

Marketing units dig deep into the market demand, break the foreign monopoly to achieve terminal sales. Since accepting the PAO sales task on August 19, 2021, the lubricating oil company's leadership team has responded quickly, actively stepped on the front line to increase promotion, formulated the marketing strategy of ""market-oriented, win-win cooperation, sale-oriented production, and joint development"", held several meetings for special research, and proposed support and guarantee strategies. Within two months completed the full coverage of 11 international oil companies, 10 domestic scale customers, 8 Chinese dealers, the formation of market research reports, the establishment of Sinopec PAO price system. We actively introduced Sinopec PAO products to well-known enterprises outside China. At the same time, various forms of publicity were used to enhance the visibility of Sinopec PAO products. By taking multiple measures, we successfully developed a number of well-known PAO end customers.

At present, PAO products in the system is also speeding up the industrial application, lubricating oil companies with the principle of ""exhaustion"" in the promotion system of high-quality resources to achieve results, has formed technical solutions in 6 engine oils with high low temperature performance requirements and instrument oils, 4637, TAO-B low temperature greases. The open range has accounted for 50% of all types of products using this viscosity level PAO. Batch after batch of PAO products enter the lubricant production line. Combined with the continuous expansion of export sales of PAO products, the road to the market of PAO products has been opened up. Maoming Petrochemical, the Academy of Stone Sciences and Lubricant companies will continue to work together to promote the brand management of China's stone PAO products, implement the Group's ""oil to special"" strategy in the form of large corps operations, continuously expand the market, and jointly promote the high-end development of China's lubrication value chain.