Hengli Petrochemical: Important Subsidiary Listed on the US Treasury Department's SDN List.

Hengli Petrochemical announced that its important subsidiary, Hengli Petrochemical Refining Co., Ltd., has been listed on the SDN list by the Office of Foreign Assets Control of the U.S. Department of the Treasury. The company clarified that it has never had any trade with Iran since its establishment, and its crude oil suppliers have guaranteed that the oil they supply does not originate from the U.S. sanctions. Currently, the company's production and operation are running normally, with all production units operating at high loads. The company has sufficient crude oil reserves to meet processing needs for the next three months, and the crude oil procurement business has not been affected. The company will ensure procurement security through diversified channels such as RMB settlement. These sanctions only apply to Hengli Refining and its subsidiaries, and do not involve other operating entities of the listed company. The company has launched a special compliance response mechanism, hired professional legal teams to assess the response, strongly opposes the unilateral sanctions, and will vigorously defend its rights according to law.