On September 27, 2024, Binhai Investment (02886.HK) announced that its wholly-owned subsidiary, Binhai Investment (Tianjin), entered into a capital increase agreement with Sinopec Natural Gas, to proportionally increase the registered capital of Sinopec Liquefied Natural Gas. Accordingly, Sinopec Natural Gas agreed to contribute RMB 39.2 million, while Binhai Investment (Tianjin) agreed to contribute RMB 8 million in cash to inject into the registered capital of Sinopec Liquefied Natural Gas. The additional registered capital injected under the capital increase will provide funds for the construction project of Sinopec Liquefied Natural Gas to expand its liquefied natural gas business.

Currently, Binhai Investment (Tianjin) and Sinopec Natural Gas hold 2% and 98% equity of Sinopec Liquefied Natural Gas, respectively. After the capital increase, Binhai Investment (Tianjin) and Sinopec Natural Gas will continue to hold 2% and 98% equity of Sinopec Liquefied Natural Gas.

Sinopec Liquefied Natural Gas is a limited liability company established in China, mainly engaged in the construction and operation of liquefied natural gas receiving stations and terminals, as well as the storage and processing of liquefied natural gas products.

The purpose of the capital increase is to raise funds for the construction project funding requirements of Sinopec Liquefied Natural Gas. The additional registered capital injected under the capital increase will provide funds for the construction project of Sinopec Liquefied Natural Gas to expand its liquefied natural gas business.

Sinopec Liquefied Natural Gas has excellent operating performance, and its continued development ensures Binhai Investment (Tianjin) continuously receives good investment returns as a shareholder of Sinopec Liquefied Natural Gas. Binhai Investment (Tianjin) participating in this capital increase as a shareholder is beneficial for the investment project development of Sinopec Liquefied Natural Gas, and helps Binhai Investment (Tianjin) obtain the support of Sinopec Liquefied Natural Gas's liquefied natural gas receiving station resources.