Sinopec reported first-half 2026 net profit of RMB 25.63 billion, up 19.3% year on year, as higher refining margins, upstream production and natural-gas profitability outweighed weaker domestic fuel demand, a RMB 16 billion impairment provision and Middle East supply disruptions. After U.S. and Israeli strikes on Iran intensified regional tensions, the company said it would expand crude sourcing from Brazil, Africa and other regions while deepening ties with Saudi Arabia and the United Arab Emirates. Sinopec held crude stocks sufficient for about 20 days of processing and refined-fuel inventories equivalent to roughly 15 days of sales. Operating revenue was RMB 1.44 trillion and operating profit rose 11.3% to RMB 37.2 billion. Refining margins increased 44.1% to RMB 453 per metric ton despite a 5.6% decline in first-half crude processing to 113.31 million tonnes. The board approved an interim dividend of RMB 0.105 per share, while Sinopec plans to allocate more than RMB 30 billion annually, or about 20% of capital spending, to new energy and new materials from 2026 to 2030.