The 1^st Audit Committee 14^th Meeting was held in Hong Kong on October 29, 2012. Audit Committee Chairman Abdulaziz Al-Judaimi and members Mr.Chen Xiaobo, Mr. Lin Li and Mr. Paul A. Theys attended the meeting.

Chief Auditor Ms. Liu Cuixia reported the “Audit of the Product Marketing Business Process” completed by the Internal Audit. Ms. Wong Lock Leng, General Manager of Finance Department reported the closeout status of the audit gaps and implementation of the overall monitoring on behalf of the management.

The members stated that the Internal Audit team had continuously expanded risk-oriented audit business in recent years and carried out effective work in assisting the management departments to identify inadequacies in monitoring, optimize the business processes and enhance the management level. The audit service quality and business competency have been improved significantly and their work is satisfactory. At the meeting, the Internal Audit team was requested to work closely and make joint efforts with business departments. In particular, the Internal Audit team should use their business advantages and provide more effective comments and recommendations in the Ethylene De-bottleneck & Associated Facilities Project and Turnaround next year.

The attendees were satisfied with current overall monitoring status and affirmed the management efforts in closeout of the audit monitoring gaps, efficiency improvement and business optimization etc. At the same time, the meeting expected to reinforce training of employees’ monitoring awareness and minimize the reoccurrence of repeated problems.

The “Internal Audit Work Plan for 2013”al Audit was expected to highlight the audit of Ethylene De-bottleneck Project, Process Department business and T&P business processes in 2013 strictly in accordance with the “3-Year Business Rolling Plan”.