China Oil and Gas Investment Group Co., Ltd signed a framework agreement to acquire 6.99% stake in Shandong Shengli Co., Ltd. (SZSE:000407) from Shandong Shengli Investment Co., Ltd. for approximately CNY 320 million on July 15, 2021. China Oil and Gas Investment signed the share transfer agreement to acquire 6.99% stake in Shandong Shengli from Shandong Shengli Investment on August 10, 2021. China Oil and Gas Investment will acquire 61.5 million shares at an offer per share of CNY 5.23. China Oil and Gas Investment shall pay 10% of the share transfer price, within 5 working days from the date of opening the fund co-management account or the account that can achieve the purpose of fund co-management, 20% of the share transfer price, within 5 working days from the date when the Shenzhen Stock Exchange issues a confirmation letter or equivalent document for the transfer of shares, 30% of the share transfer price, within 5 working days from the date when all the underlying shares are transferred to China Oil and Gas Investment's name and the remaining 40% of the share transfer price within 5 working days from when Shandong Shengli Investment cooperates with China Oil and Gas Investment to complete the re-election of Shandong Shengli?s Board of Directors, the board of supervisors, and the appointment and removal of senior management personnel (if necessary), and Shandong Shengli Investment supervises Shandong Shengli to complete the turnover of the materials, licenses, articles to the management personnel sent by China Oil and Gas Investment. Parties agreed to strive to sign the formal share transfer agreements before July 30, 2021. As of September 18, 2021, State Administration for Market Regulation approved the transaction. The shares transfer is subject to the satisfaction of the results of due diligence conducted on Shandong Shengli, including (but not limited to) business, finance, assets, personnel, institutions, etc., and the signing of the relevant share transfer agreements to finalize the formal shares transfer terms.