Hengli Petrochemical: Major subsidiary listed on the SDN list by the U.S. Department of the Treasury

Hengli Petrochemical (600346.SH) announced that the company has recently become aware that the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has listed its important subsidiary Hengli Petrochemical (Dalian) Refining Co., Ltd. on the SDN list. The company clarifies that, since its establishment, it has never engaged in any trade with Iran, and all crude oil suppliers guarantee that the origin of the crude oil supplied is not within the scope of U.S. sanctions. Currently, all production and operations of the company are normal; all production units maintain high load operation in a stable manner; existing crude oil reserves are sufficient to meet the required crude oil processing volume for more than 3 months in the future; and the crude oil procurement business is not affected. The company will ensure procurement safety through diversified channels such as RMB settlement. This sanctions measure is limited to Hengli Refining and its subsidiaries and does not involve other operating entities of the listed company. The company has initiated a special compliance response mechanism, engaged a professional legal team to assess and respond, firmly opposes this unilateral sanctions, and will protect its rights and interests in accordance with the law.