STRONG PETRO (00852) subsidiary intends to sell all equity in Nantong Runde Petrochemical for US$12.5 million

STRONG PETRO (00852) announces that on 16 October 2026 (after trading hours), Tianeng, an indirect wholly-owned subsidiary of the Company, entered into a sale and purchase agreement with Yantai Jincheng, an independent third party, pursuant to which Tianeng has agreed to sell and Yantai Jincheng has agreed to acquire the entire equity interest in the target company, Nantong Runde Petrochemical Co., Ltd., for a consideration of US$12.5 million (equivalent to approximately HK$97.5 million). As at the date of this announcement, the target company is wholly-owned by Tianeng. Upon completion, Tianeng will cease to have any interest in the target company, and the target company will cease to be a subsidiary of the Company. Accordingly, the financial results of the target company will no longer be consolidated into the consolidated financial statements of the Group upon completion. The target company is principally engaged in the provision of general storage and other ancillary services relating to refined oil and petrochemical products. As a result of the disposal, the Group is expected to recognise a gain of approximately HK$58.1 million. The net proceeds from the disposal are intended to be used as general working capital of the Group and to provide funding support for future business development investment opportunities. The Directors consider that the disposal provides a good opportunity for the Group to realise its investment in the target company at an attractive return. In addition, the disposal will improve the Group's liquidity and strengthen its overall financial position. Based on the relevant circumstances, the Company has decided to withdraw from the target company by selling the entire equity interest in the target company to Yantai Jincheng.