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In 2020, the Company conscientiously studied and implemented President Xi Jinping's Thought on the Rule of Law, and actively promoted the rule of law in centrally-controlled SOE. Great achievements were made in legal services for projects and contract management, dispute settlement and reduction of account receivable and inventory-occupied capital, compliance management system construction, and the construction of the rule of law culture, playing a role in providing support, standardization and value creation. The Company successfully accomplished the final acceptance of the SASAC of the State Council, the Publicity Department of the CPC, the Ministry of Justice and the National Legal Promotion Office, and won the A-level evaluation.

Orderly promoting the compliance management system, continuously optimizing the system management. The Company formulated the compliance management measures and the development scheme of the compliance management system, and selected some subsidiaries to carry out pilot projects. More than 200,000 cadres and employees participated in the study of the compliance manual. We compiled the list and guidelines of legal compliance risks such as international sanctions, export control, overseas anti-corruption and anti-monopoly laws, and promoted the integration of internal control, risk control and compliance. We actively responded to foreign-related compliance cases and strictly controlled compliance risks. We revised the system management measures, strengthened the system management and control requirements, and orderly promoted the reform of legislation. A number of important systems related to the overall situation, such as the company’s articles of association and investment management measures were further improved.

Actively following up the legal services for major projects, further improving the contract management level. We participated in major contract projects in the whole process, strengthened the legal services for projects such as overseas direct investment, domestic capital operation and domestic and foreign financing, and strived to promote the smooth progress of major projects in accordance with the law. We strictly followed two-level legal review and carried out legal compliance demonstration. We organized the contract system to promote the implementation of the project, and improved the Sinopec contract text library composed of more than 3,000 standard contract texts. By benchmarking the first-class legal sharing platform, the level of legal management informatization reached a new level. We also built industrial and commercial family map to provide basic data support for company management, equity management, credit risk prevention and control.

Vigorously carrying out special actions on handling disputes, realizing the double decline of the number of accumulated cases and the capital amount involved in the cases. The Company put emphasis on the accountability mechanism of subsidiaries where the legal case occurred and the requirements for the heads of the relevant subsidiaries to participate in handling major dispute cases, implemented measures such as “one case, one policy” and supervision of major legal disputes based on ratings of severity, and a number of major long-standing cases were properly handled. In addition, the Company carried forward with the legal campaign of collecting account receivable and inventory-occupied capital and made remarkable results. We also strengthened the legal protection of intellectual property, prevented the risks related to software use, carried out special actions to investigate the clues of intellectual property infringement, and properly dealt with legal disputes over intellectual property.

Continuing to deepen the legal compliance culture and cultivating legal talents in an orderly way. The top leader of the Company issued a signed article to study President Xi Jinping’s Thought on Rule of Law, and the Party group (Party committee) theoretical learning group normalized the learning activity on the rule of law. The responsibility system of “manager responsible for law dissemination among the team” and the pattern of “Comprehensive Law Dissemination” were further improved. We rolled out law dissemination activities focusing on improving quality and efficiency, transformation and development, safety production, environmental protection, labor and employment, etc. the “Seventh Five -Year Plan” of law dissemination was successfully completed. We selected and recruited legal experts and built a two-layer expert team and a corporate lawyer team consisted of 260 lawyers, thus widening the career path and improving the professional quality and performance ability.