Sinopec SEG plans to acquire 100% equity of East China Pipeline Design Institute.

SINOPEC SEG (02386) announced that on December 23, 2025, the company's wholly-owned subsidiary Nanjing Engineering and Pipeline Storage and Transportation Asset Company signed a "Equity Transfer Agreement", under which Nanjing Engineering agreed to acquire 100% of the equity held by the Pipeline Storage and Transportation Asset Company in East China Pipeline Design Institute. After the completion of this transaction, East China Pipeline Design Institute will become a subsidiary of the company, and its financial statements will be included in the group's consolidated financial statements. East China Pipeline Design Institute holds one professional Grade A qualification in "Pipeline Transportation Specialty for Oil and Gas (Offshore Petroleum)". After this transaction is completed, East China Pipeline Design Institute's existing storage and transportation professional resources can be highly integrated and complementary to the group's business, fully leveraging the operational potential formed by the professional Grade A qualification of East China Pipeline Design Institute. This will further strengthen the group's all-business chain from design to procurement, construction and integrated EPC service capabilities. The group has a good influence and customer relationships in the storage and transportation facilities industry, and has strong equipment resources, talent pool and project performance in long-distance pipeline construction business. Through this transaction, the group will increase and continuously enrich its EPC qualification and project execution capabilities for long-distance pipelines and storage facilities, creating conditions for expanding into emerging markets such as hydrogen pipelines, aviation fuel pipelines, and long-distance pipelines for chemical products. The group has been deeply cultivating in the Middle East Gulf markets such as Saudi Arabia, Kuwait, and the United Arab Emirates for 20 years, and has established good cooperative relationships with local owners. The acquisition of East China Pipeline Design Institute will add an important chip to the group's expansion of the local storage and transportation engineering construction market, further expanding the scope of engineering services, strengthening and optimizing overseas business, and enhancing international market competitiveness.