The Board announced that on 9 November 2023, Huade Petrochemical and Sinopec Guangzhou Engineering entered into the Construction Agreement in relation to the Mabianzhou jetty facilities upgrade and transformation for naphtha uploading construction project, pursuant to which Sinopec Guangzhou Engineering agreed to provide related construction services to Huade Petrochemical. As at the date of this announcement, Huade Petrochemical is an indirect wholly-owned subsidiary of the Company. The Board announces that on 9 November 20 23, Huade Petro chemical and Sinopec Guangzhou engineering entered into the Construction Agreement, principal terms of which are set out below.

The Construction Agreement. Services to be provided. Pursuant to the Construction Agreement, Sinopec Guangzhou Engineering agreement agreed to provide construction services to Huade Petro chemical relating to the Mabianzhou Jetty facilities upgrade and transformation, including but not limited to the construction drawing design of the project, procurement, construction works, commissioning, conducting trial operation and testing of the relevant systems, and remedying any defects thereof, etc.

Term. Pursuant to the construction Agreement, Sinopec Guang Guangzhou Engineering agreed to complete the Construction Project on or before 30 June 2024, or such another date as may be agreed between Huade Petrochemical andSinopec Guangzhou Engineering. In determining the successful bidder in an open tender, Huade Petrochemical took into account factors including: (a) terms of the tender proposals submitted by the bidders, including tender prices, discount rates (if applicable) and provision of performance guarantees; (b) backgrounds, qualifications, experience, reputation and financial position of the bidders; (c) track records and historical business relationships between Huade Petrochemical and the bidders; and (d) Huade Petrochemical's financial budget.

Upon assessment, Sinopec Guangzhou engineering was awarded the Construction Agreement. Pursuant to theConstruction Agreement, the successful bid price submitted by Sinopec Guangzhou Engineering during the course of the open tender shall be the final service fees of the Construction Project. In order to make better use of Huade Petrochemical's abundant capacity of the terminal for unloading and for its business expansion, Huade Petrochemical intends to upgrade and transform Mabianzhou jetty facility to provide naphtha unloading service to third parties.