The board of the directors of Suchuang Gas Corporation Limited announced that, on 27 July 2020, the Company and CNOOC Gas and Power Group Co., Limited entered into a cooperation framework agreement for a term of five years from the date of the Cooperation Framework Agreement to establish a cooperative relationship in relation to, among other things, the development of the LNG sector, the construction of an LNG receiving terminal at the Taicang Port, a port located in Taicang City, Jiangsu Province, the PRC, the development and operation of LNG tank containers business and the construction of LNG refuelling stations for vehicles and vessels. Pursuant to the Cooperation Framework Agreement, the Company and CNOOC Gas and Power Group agreed as follows: The parties shall set up a special working group as soon as possible after signing of the Cooperation Framework Agreement to exchange information, discuss, negotiate and facilitate the submissions in respect of, and the construction proposals of, the LNG receiving terminal and the cooperation proposals in respect of the LNG tank containers business, the LNG refuelling stations for vehicles and vessels and market development, and enter into further cooperation agreements based on specific cooperation proposals; The parties shall jointly facilitate the submissions in respect of, and the construction and operation of, the LNG receiving terminal at the Taicang Port. CNOOC Gas and Power Group shall provide professional advice on the planning and design proposals of the LNG receiving terminal based on its own expertise, and cooperate with the Company to make the required submissions to competent authorities. CNOOC Gas and Power Group can also provide support for international trading of LNG. The Company shall leverage on its expertise to provide support in exploring downstream markets and potential major users and obtaining administrative approval. The parties agreed that after CNOOC Gas and Power Group decides to invest in the LNG receiving terminal at the Taicang Port, CNOOC Gas and Power Group shall become a shareholder of Taicang Zhongcheng Port Construction Co. Ltd. (the "Project Company"), which is a company currently held as to 90% and 10% respectively by the Company and Taicang City Development Group Co. Ltd. The name of the Project Company can be changed based on CNOOC Gas and Power Group's view after CNOOC Gas and Power Group becomes a shareholder. The parties shall enter into a separate investment agreement, and other strategic investors may be introduced as and when appropriate with the consent of the parties; The parties agreed that, with the extensive experience of CNOOC Gas and Power Group in the design and construction of receiving terminals and tank containers, and on the premise of ensuring "the lowest cost, the best quality and the highest efficiency", CNOOC Gas and Power Group and its affiliates shall have the priority to take charge of the construction of the LNG receiving terminal at the Taicang Port (or the parties may mutually agree other ways to construct the LNG receiving terminal); The parties agreed that the operation of the LNG receiving terminal at the Taicang Port shall adopt the "tolling model" and the Project Company shall charge processing fees based on the LNG processing volume. The unit processing rate charged at the LNG receiving terminal at the Taicang Port shall be fixed according to the standard approved by the national pricing authority with reference to the market conditions; Based on the actual development of the LNG tank containers business, CNOOC Gas and Power Group shall be the preferred partner of the Company and shall supply LNG to the Company at the most competitive price. The Company shall assist in handling the lifting, filling, stacking and other relevant procedures based on the condition of the loading location designated by the parties, and provide modification services to CNOOC Gas and Power Group for its auxiliary facilities as and when necessary based on the actual situation. The parties shall formulate effective, flexible and cost-effective proposals in relation to the loading, logistics and transit of LNG tank containers based on the demand of the end customers; According to the plan of Taicang City on the construction of the LNG refuelling stations for vehicles and vessels, Taicang City intends to construct several refuelling stations for vehicles and vessels. CNOOC Gas and Power Group has extensive experience in the design, construction and operation of refuelling stations for vehicles and vessels, and the parties shall jointly handle the submissions in respect of, and the construction and operation of, the refuelling stations for vehicles and vessels; The parties shall jointly promote the development of the natural gas (including LNG) market in Jiangsu Province, the lower stream of Yangtze River and the Yangtze River Delta; and The parties shall work together to build a natural gas trading center and delivery site in the Yangtze River Delta through project cooperation, and form a Yangtze River index for natural gas.