China BlueChemical (3983) entered into an Entrusted Management Agreement on 28 February 2026 with CNOOC Oil & Petrochemicals and Fudao Chemical. Under this agreement, CNOOC Oil & Petrochemicals will manage the daily production and operation of Fudao Chemical from 1 March 2026 until 28 February 2029. There is no management fee for this arrangement.

According to the announcement, Fudao Chemical’s profit sharing and loss bearing setup, as established in a 19 August 2020 arrangement between Orient Petrochemical and CNOOC Fudao, will remain unaffected. Fudao Chemical is a non-wholly owned subsidiary of China BlueChemical, primarily engaged in the production, manufacturing, and sales of acrylonitrile and methyl methacrylate products. CNOOC Oil & Petrochemicals, a wholly owned subsidiary of CNOOC, focuses on petroleum, coal, and other fuel processing.

The transaction aims to optimize resource allocation and enhance operational efficiency by leveraging industrial synergy advantages and the advanced production experience of Orient Petrochemical, a wholly owned subsidiary of CNOOC Oil & Petrochemicals. As CNOOC is China BlueChemical’s controlling shareholder, and Fudao Chemical is held 49% by Orient Petrochemical, the agreement qualifies as a continuing connected transaction under the Listing Rules. However, the announcement states it is a de minimis transaction with applicable percentage ratios below 0.1%, fully exempting it from independent shareholders’ approval, annual review, and all disclosure requirements.