On May 22, the kick-off meeting of the shareholders joint audit of 2023 of the Company was convened in Quanzhou/ Quangang via teleconference.

OOP members, Saleh Yahya Al Zaid, Lin Xu and Li Ji, attended the meeting. Pi Zhiping, the lead of the shareholders' audit team chaired the meeting.

Zhou Xinqian, General Manager of Sinopec Overseas Audit Center, put forward expectations for this joint audit. First, the Company management should correctly understand the importance of this audit, deeply analyze the root causes of the gaps identified and work out rectification measures to further improve management systems and regulations. Second, relevant departments should actively cooperate in the audit, provide information comprehensively and timely, answer in detail the questions raised during the audit, and ensure smooth and efficient advancement of the audit. Third, immediate actions should be taken to rectify the identified gaps, and develop detailed rectification scheme and clear rectification plan for the gaps couldn’t be rectified immediately.

Zhou Xinqian required the audit team to conscientiously implement the audit quality control process and thoroughly investigate risks and problems. Efforts should be made on good use of basic information and strengthened internal coordination to minimize the impact on normal production of the Company. All the auditors should strictly comply with the discipline of audit, abide by the rules and regulations of the Company, and ensure a clean and safe audit.

Pi Zhiping introduced the objectives, work process, scope, audit team members and division of work of this audit. He hoped FREP to closely cooperate with the audit team, and provide support for a smooth audit.

Pan Hanjiao, manager of the Audit Department of ExxonMobil China, India and Indonesia, expressed gratitude to FREP for the support to the shareholders' joint audit. She commented that the auditors were expected to closely cooperate with the auditors from other shareholders, and provided high-quality audit opinions based on the audit objectives, requirements and scope, so as to support the development of FREP.

Audit manager PO CHI HUANG of Saudi Aramco introduced the members of Saudi Aramco auditor team. He commented that Saudi Aramco attached great importance and arranged experts to this audit. Considering the differences in audit methods among different shareholders, he hoped all the parties to strengthen exchanges, carry out in-depth communication and have brainstorms proactively to successfully complete this joint audit work.

President Saleh Yahya Al Zaid of the Company welcomed the audit team. He commented that the Company and the audit team shared a common target of improving the 5KFA performance. In the past few years, although field audits had not been conducted due to Covid impact, FREP has take innovated methods and conducted multiple rounds of inspections and improvements, which have delivered significant results.

Saleh Yahya Al Zaid required that all the departments of the Company to fully recognize the importance of the shareholders joint audit, make overall arrangements and assign dedicated personnel to cooperate, as well as be open and transparency in sharing information, and be open-minded and honest during communication, so as to create a favorable conditions for smooth advancement of the shareholders joint audit.

At the meeting, Vice President Lin Xu introduced the Company's operation situation of the past two years.

More than 40 people, including the members of the shareholders’ joint audit team, relevant departmental management of the Company, members of the BAC Office, control representatives, audit contacts and relevant business personnel, attended the meeting.

This shareholders’ joint audit was led by Sinopec, with engagement of the auditors from all the three shareholders. It was planned to have a 4-week audit by 5 audit groups in the aspects of company governance, production and operation, safety and environmental protection, financial accounting, procurement and sales and information technology. (Zhang Lei)