Sanjiang Chemical secures supply with interim agreements ahead of shareholder vote

China Sanjiang Fine Chemicals Company Limited announced supplemental agreements with Mei Fu Petrochemical and Blue Whale Bioenergy to secure essential supplies for its operations. These agreements, effective from January 1, 2026, cover the period leading up to an extraordinary general meeting (EGM) on January 15, 2026, where independent shareholder approval for the underlying sales and purchase agreements is sought.

The company signed an MF supplemental agreement with Mei Fu Petrochemical for naphtha purchases. Its wholly-owned subsidiary, Sanjiang Chemical, also entered into a BW supplemental agreement with Blue Whale Bioenergy for steam, liquefied petroleum gas, and fuel gas. Mei Fu Petrochemical is approximately 80% owned by Mr. Guan, a controlling shareholder of the company, making the transaction a continuing connected transaction. Blue Whale Bioenergy is an associate of Ms. Guan (daughter of Mr. Guan and Ms. Han) and Ms. Han (wife of Mr. Guan), also constituting a continuing connected transaction.

Expected transaction amounts under the MF supplemental agreement are subject to reporting, announcement, and annual review requirements but are exempt from independent shareholder approval, as applicable ratios are between 0.1% and 5%. The BW supplemental agreement's aggregated expected transaction amounts also fall within the 0.1% to 5% ratio, requiring reporting, announcement, annual review, and independent shareholder approval. Both supplemental agreements will automatically terminate on January 15, 2026.