According to the preliminary calculation of the Financial Department of China Petroleum & Chemical Corporation, under the PRC Accounting Standards for Business Enterprises, the net profit attributable to equity shareholders of the company for the nine months ended 30 September 2018 will increase by an amount between RMB 21.0 billion and RMB 21.7 billion, representing an increase between 54.7% and 56.6% as compared with the corresponding period of previous year. The net profit attributable to equity shareholders of the company excluding extraordinary gains and losses for the nine months ended 30 September 2018 will increase by an amount between RMB 19.8 billion and RMB 20.5 billion, representing an increase between 53.9% and 55.8% as compared with the corresponding period of previous year. The reason for estimated increase is: In the first three quarters of 2018, with the year-on-year increase of the international crude oil price, the upstream business of the Company improved significantly. Meanwhile, the Company seized the market opportunity of the midstream and downstream business, strengthened structural adjustment and optimisation and maintained positive momentum. The profitability of the Company has showed a year-on-year improvement.