CHINA BLUECHEM (03983) announced that on February 28, 2026, the company, CNOOC Refining and Petrochemical, and Fudao Chemical entered into an entrustment management agreement. Under this agreement, CHINA BLUECHEM has appointed CNOOC Refining and Petrochemical to manage the daily production and operations of Fudao Chemical. The term of the entrustment management agreement is from March 1, 2026, to February 28, 2029.

The decision is based on the fact that Dongfang Petrochemical, a wholly-owned subsidiary of CNOOC Refining and Petrochemical, is the primary raw material supplier for Fudao Chemical. This relationship provides industrial synergy advantages and positions CNOOC Refining and Petrochemical more favorably to help Fudao Chemical reduce costs and improve efficiency. Additionally, Dongfang Petrochemical possesses advanced, mature, and extensive capabilities and experience in the production and operation of chemical products such as acrylonitrile.

To further optimize resource allocation and management, and to enhance the operational efficiency of Fudao Chemical, the parties have agreed to proceed with this transaction.