DZUG (01635) announced that on December 19, 2025, Shanghai Gas Chongming signed a unified delivery and safety service contract for bottled liquefied petroleum gas (LPG) with Dazhong Logistics. Under the agreement, Shanghai Gas Chongming will entrust Dazhong Logistics with the transportation of bottled LPG in Chongming District, Shanghai, China, for unified motor vehicle delivery, installation, and safety inspections. Shanghai Gas Chongming will pay the corresponding service fees to Dazhong Logistics.
On the same day, Shanghai Oriental Energy also entered into a user delivery service contract for LPG cylinders with Dazhong Logistics. According to the contract, Shanghai Oriental Energy will delegate the user delivery services for LPG cylinders in its designated areas of Shanghai to Dazhong Logistics for motor vehicle delivery, installation, and safety inspections. Shanghai Oriental Energy will compensate Dazhong Logistics for the relevant services.
Dazhong Logistics has a thorough understanding of the business and requirements of both Shanghai Gas Chongming and Shanghai Oriental Energy, enabling effective communication. Additionally, Dazhong Logistics possesses extensive transportation and delivery experience along with professional qualifications. Therefore, the board believes Dazhong Logistics is capable of efficiently providing unified bottled LPG delivery and safety services to Shanghai Gas Chongming and Shanghai Oriental Energy, as well as effective cylinder user delivery services to Shanghai Oriental Energy.
The directors (including independent non-executive directors, except for non-executive director Mr. Zhao Yeqing) consider that both the unified bottled LPG delivery and safety service contract and the LPG cylinder user delivery service contract, including the proposed transactions (such as annual caps), were negotiated fairly among the contracting parties. These agreements were established under normal commercial terms or better during the group’s ordinary course of business, deemed fair, reasonable, and in the best interests of the company and its shareholders.