According to Zhitong Finance App, China Sanjiang Chemical (02198) announced that the company (including its subsidiaries) and Jiahua Energy & Chemical Company (including and covering its subsidiaries) signed a framework agreement on December 29, 2023. The company (including its subsidiaries) has agreed to provide pipeline network usage services to Jiahua Energy & Chemical Company (including and covering its subsidiaries) for a period of not more than RMB 5.5 million.

Since the main business activity of the pipe gallery is to build and manage the pipeline network in the Jiaxing Port Chemical Industrial Zone, and the production base of Jiahua Energy & Chemical Company is located in the Jiaxing Port Chemical Industrial Zone, the establishment of a framework agreement will enable the pipe gallery to participate in its main business and bring synergy effects to the operation of the pipe gallery. Furthermore, since the purchase price under the framework agreement is determined in accordance with the “Jiaxing Port Area Public Pipeline Service Fee Standard” notice issued by the local authorities (applicable to all pipeline users within the region), the board of directors believes that these pricing principles and transactions under the framework agreement will be carried out in accordance with normal commercial terms and will not harm the overall interests of the company and its shareholders. For the above reasons, the pipe gallery signed a framework agreement with Jiahua Energy & Chemical Company.