KNT HOLDINGS (01025) subsidiary Yongran and Haohui Xingye intend to cooperate in developing the petrochemical business in China.

KNT HOLDINGS (01025) announces that on May 2, 2025, its indirect wholly-owned subsidiary, Yongran Limited Company (Yongran), entered into a non-binding memorandum of understanding with Haohui Industrial Limited Company (Haohui) According to the memorandum, Yongran and Haohui intend to cooperate in developing the petrochemical business in China, focusing on industrial operations such as natural gas production, natural gas processing, liquefied gas processing, natural gas collection services, and related businesses (cooperative business). The purpose of this cooperation is to enhance the energy efficiency of China Petroleum & Chemical Corporation's industry and promote its sustainable development. The memorandum is valid for one year from the date of signing, providing a framework for cooperation and including strict confidentiality obligations to protect the parties' commercial secrets and information. The parties may enter into a formal and legally binding agreement at the appropriate time, subject to approval by their respective controlling shareholders or boards of directors, and compliance with the terms and conditions of the agreement. The board believes that the group's pursuit of strategic business and investment opportunities will enhance its long-term value. The memorandum allows the group to leverage Haohui's regional expertise and investment capabilities to expand its influence in the field of China Petroleum & Chemical Corporation. The directors expect that once the cooperative business is operational, it will diversify the group's sources of revenue, increase profitability, and promote sustainable development through efficient and innovative petrochemical operations. This cooperation aligns with the group's commitment to promoting sustainable industrial practices and is expected to create significant value for shareholders.