PETRO-KING announced that on January 27, 2026, its subsidiary Petro-King Technology entered into a purchase agreement with supplier Sany Energy Equipment Co., Ltd. Under this agreement, Petro-King Technology agreed to purchase, and the supplier agreed to sell, new equipment. The equipment consists of two 130-barrel blending units, including one new SYR5350THS triple-auger model and one used SYR5331THS dual-auger model, for a total consideration of RMB 8.05 million (approximately HK$9.045 million), inclusive of tax.

The two existing blending units currently in use by the Group are each approximately 11 years old, necessitating higher repair and maintenance costs. Furthermore, they are increasingly failing to meet the progressively stringent requirements of the Group's oil and gas field clients.

Consequently, the Group must purchase the new equipment from the supplier to maintain its competitiveness and service quality, as well as to satisfy more rigorous industry standards and demands.

Compared to the existing blending units, the core performance enhancements of the new equipment primarily include the following aspects: 1. Increased fracturing fluid discharge and transfer capacity: The maximum discharge rate of the existing units is 16 cubic meters per minute, while the new equipment can achieve 20 cubic meters per minute, an improvement of approximately 25%. Additionally, the maximum transfer rate of the existing units is 2.5 cubic meters per minute, whereas the new equipment can reach 8 cubic meters per minute, a substantial increase of about 220%. The new equipment is also better equipped to handle the high-volume demands of deep and ultra-deep oil and gas wells and can support high-intensity fracturing modes such as "zipper fracturing."

2. Enhanced level of intelligence: The new equipment is equipped with self-diagnosis, fault prediction, remote cluster control, and other intelligent functions, effectively reducing the number of operators required per unit. The software supporting the new equipment allows for continuous upgrades, ensuring more stable sensor calibration and enabling networked collaborative operations, featuring one-click start-stop and process automation functionalities.

3. Environmental protection and fuel efficiency: The existing blending units comply with China's National IV emission standards but have a relatively high pollution level. In contrast, the new equipment meets the stricter National VI emission standards, offering superior environmental performance. The new equipment also improves energy efficiency by reducing fuel consumption by approximately 5%-10%.