10:21     SINOPEC KANTONS<00934> - Announcement (8)                           

    Under the Unipec Framework Master Agreement, the Group will enter         
    into separate written sale and purchase agreements not exceeding          
    3 years with members of the Unipec Group for the trading of               
    petroleum products on a transaction by transaction basis. The             
    parties will negotiate with reference to, among other factors,            
    market conditions, normal commercial terms, trade customs and             
    the principle of fairness and will conclude the detailed terms            
    and provisions in the contracts and the agreements.                       
                                                                              
    Under the Unipec Framework Master Agreement, the prices payable           
    are to be based on international market prices and are to be              
    agreed between the parties on an arm's length basis through               
    negotiations. The parties can access such pricing information             
    from various sources, including the EMIS energy market                    
    information resource operated by Platts.                                  
                                                                              
    Under the CPIC Framework Master Agreement, the Group will enter           
    into separate written sale and purchase agreements not exceeding          
    3 years with members of the CPIC Group and CPIGC for the trading          
    of petroleum and petrochemical products on a transaction by               
    transaction basis. The parties will negotiate with reference              
    to, among other factors, market conditions, normal commercial             
    terms, trade customs and the principle of fairness and will               
    conclude the detailed terms and provisions in the contracts and           
    the agreements.                                                           
                                                                              
    Under the CPIC Framework Master Agreement, the prices payable             
    are to be based on international market prices and are to be              
    agreed between the parties on an arm's length basis through               
    negotiations. The parties can access such pricing information             
    from various sources, including the EMIS energy market                    
    information resource operated by Platts.                                  
                                                                              
    Under the CPIGC Framework Master Agreement, the Group will enter          
    into separate written sale and purchase agreements not exceeding          
    3 years with CPIGC for the trading of petroleum and petrochemical         
    products on a transaction by transaction basis. The parties will          
    negotiate with reference to, among other factors, market                  
    conditions, normal commercial terms, trade customs and the                
    principle of fairness and will conclude the detailed terms and            
    provisions of the contracts and the agreements.                           
                                                                              
    Under the CPIGC Framework Master Agreement, the prices payable            
    are to be based on international market prices and are to be              
    agreed between the parties on an arm's length basis through               
    negotiations. The parties can access such pricing information             
    from various sources, including the EMIS energy market                    
    information resource operated by Platts.                                  
                                                                              
    The aggregate amounts paid and received by the Group in respect           
    of these connected transactions for each of the two years ended           
    31 December 2003 were approximately HK$297.23 million and                 
    HK$303.96 million.                                                        
                                                                              
    The Directors expect that these connected transactions will               
    continue and the monetary amount will increase substantially              
    for reasons set out below, in particular, the collective                  
    bargaining power of Sinopec Group, which the Group wishes to              
    utilize more in the future and is beneficial to the Group. The            
    aggregate amounts paid and received by the Group in respect of            
    these transactions (which is an aggregate figure and not a                
    net-off figure) shall not exceed HK$1,500 million, HK$2,000               
    million and HK$2,000 million for each of the three financial              
    years ending 31 December 2005, 31 December 2006 and 31 December           
    2007 respectively.                                                        
                                                                              
    Reasons for the transactions and cap