SHOUGANG LANZA (02553) signs a cooperation framework agreement with SINOPEC Research Institute of Petroleum Processing and Ningbo Engineering to jointly promote the implementation of a bioethanol-to-sustainable aviation fuel (SAF) project in Shizuishan, Ningxia.

SHOUGANG LANZA (02553) announced that on October 12, 2026, the Company signed a Cooperation Framework Agreement (the Framework Agreement) with SINOPEC Research Institute of Petroleum Processing Co., Ltd. (RIPP) and SINOPEC Ningbo Engineering Co., Ltd. (Ningbo Engineering). Pursuant to the Framework Agreement, the three parties will jointly promote the implementation of a bioethanol-to-sustainable aviation fuel (SAF) project in Shizuishan, Ningxia, and use this as an entry point to carry out in-depth cooperation in two major directions: the development and expansion of upstream gas sources for industrial tail gas microbial fermentation ethanol production technology, and the extension of green, high-value-added downstream ethanol products, gradually building a "diversified gas sources - green ethanol - biofuels and bio-based new materials" industrial chain. The main contents include: advancing the implementation of a project with an annual output of 50,000 tons of ethanol from industrial tail gas to SAF; jointly tackling new technologies for carbon dioxide electroconversion coupled with biofermentation to produce ethanol; and jointly expanding the industrial chain for green ethanol and downstream bio-based new materials such as bio-based ethylene. RIPP is a comprehensive science and technology research and development institution directly under China Petroleum & Chemical Corporation, and has technical reserves in the fields of new alternative fuels and new energy, including bioethanol synthesis to SAF, carbon dioxide reverse conversion to syngas, and ethanol to ethylene; Ningbo Engineering is a comprehensive engineering service provider under China Petroleum & Chemical Corporation, and has solid technical advantages and engineering experience in engineering transformation, design, and engineering general contracting services. The Board believes that this cooperation will combine the Company's industrialization capabilities in the field of ethanol production from industrial tail gas with RIPP's core technologies and Ningbo Engineering's engineering advantages, achieve complementary strengths, accelerate the Company's extension from ethanol production from industrial tail gas to high-value-added fields such as green aviation fuel and bio-based new materials, further broaden raw material sources, extend the industrial chain, and enhance product added value, support the national "carbon peaking and carbon neutrality" goals and the aviation industry's decarbonization process, and help the Company connect with domestic and international green fuel markets and create long-term value for shareholders.