ZHONGHUA GAS (08246) plans to establish a joint venture to invest in and develop fuel and natural gas supply networks in Laos.

ZHONGHUA GAS (08246) announced that on June 30, 2026, the company entered into a joint venture agreement with Wanrong Development, regarding the establishment of a joint venture enterprise. Upon registration of the joint venture enterprise, the company and Wanrong Development will respectively hold 80% and 20% of the equity. The main business scope of the joint venture group includes (i) developing fuel and gas supply networks in franchised areas; (ii) constructing related infrastructure, including gas stations and gas pipelines; (iii) operating digital currency banks and related payment system businesses in Laos; (iv) other business activities authorized by the Wanrong project franchise agreement. After submitting a feasibility study report to the Ministry of Industry and Commerce of Laos for review and approval, the Group has been actively advancing its proposed investment in developing fuel and gas supply networks in Laos. Given the insufficient fuel reserves in Laos and the nascent natural gas market in the country, building fuel and gas supply networks in franchised areas will play a crucial role in providing reliable energy sources and enhancing the power supply in Laos. This project is an important milestone for the Group to expand its business in Laos and will strengthen its position in negotiations for the development of a comprehensive fuel and gas supply network in the country. Additionally, the joint venture group plans to apply for licenses related to digital currency banks and payment systems in Laos. This initiative is expected to drive the Group's transformation from a traditional asset-intensive energy operator to a technology-driven energy company. In this regard, Wanrong Development's controlling shareholder Ruifeng has already planned to enter into a franchise agreement with the Ministry of Planning and Investment of Laos, and has obtained the franchise rights to establish banks or financial institutions in franchised areas.