SHANGHAI PECHEM (00338) intends to sign a commission contract with Baling New Materials to provide personnel lending services to them.

SHANGHAI PECHEM (00338) announced that the board of directors approved the company (as the trustee) to enter into a commission agreement with Baling New Materials (as the principal) on December 16, 2025. According to this, the company will provide personnel borrowing services to Baling New Materials, with a consideration of approximately RMB 52,722,230 (including tax). The commission agreement will be signed before December 31, 2025. Baling New Materials is a joint venture company held 50% by the company and Hunan Petrochemical. Considering the cost and convenience of the site selection and personnel construction for the 250,000 tons/year of thermoplastic elastomer project, lending personnel from the company for project construction will facilitate the smooth implementation of the project, fully utilizing the company's existing resources such as butadiene, and developing styrene thermoplastic elastomer product lines, assisting the company in transitioning towards "chemicals + materials" and "basic + high-end" development, achieving the transformation of traditional application field products to high-end new materials application fields.