China Sanjiang (02198): Sanjiang Chemical and Blue Whale Bio-energy signed a naphtha purchase agreement.

CHINA SANJIANG (02198) announced on April 2, 2026 (after trading hours) that Sanjiang Chemical (an indirect wholly-owned subsidiary of the Company) has entered into a purchase agreement for naphtha with Blue Whale Bio-Energy, with a term of approximately 9 months until December 31, 2026. After the commercial operation of the Group's sixth-phase ethylene oxide (EO) / ethylene glycol (EG) production facilities (with an annual production capacity of 1 million tons) and its upstream naphtha / ethane / propane - ethylene / propylene production facilities, the overall annual production capacity of the Group is expected to increase by around 80%. The Group's production facilities (namely the sixth-phase EO / EG production facilities and its upstream naphtha production facilities) require naphtha as one of its raw materials. The naphtha purchase agreement will be negotiated on a non-exclusive basis, allowing the Group to secure additional sources of naphtha supply to further ensure a stable supply for its production. The Directors (including independent non-executive directors) believe that the terms of the naphtha purchase agreement, reached after fair negotiations between Sanjiang Chemical and Blue Whale Bio-Energy, including the corresponding annual limits, are fair and reasonable, and in line with normal commercial terms for the Group's general and day-to-day business processes, serving the overall interests of the Company and its shareholders.