Sinopec engineering subsidiary buys pipeline institute for 191m yuan

SNEI, a wholly-owned subsidiary of SINOPEC Engineering (Group) Co., Ltd., has agreed to acquire 100% equity interests in East China Pipeline Design and Research Institute from Pipeline Storage and Transportation Asset. The transaction, dated December 23, 2025, involves a cash consideration of 191,204,309.07 yuan, determined based on an income approach valuation. This acquisition is classified as a connected transaction under Chapter 14A of the Listing Rules, as Pipeline Storage and Transportation Asset is a wholly-owned subsidiary of Sinopec Group, the company's controlling shareholder.

The acquisition aims to enhance the company's overall strength by integrating East China Pipeline Design and Research Institute's professional A-class qualification and resources. It is expected to facilitate development in emerging markets such as hydrogen and aviation coal pipelines, and strengthen the group's international business in regions like the Middle East.

As of August 31, 2025, East China Pipeline Design and Research Institute had total assets of 213,435,915 yuan and net assets of 168,439,557 yuan. The appraised value of the equity interests represents an appreciation of 22,764,751.87 yuan (13.52%) over its book value. The transaction is subject to reporting and announcement requirements but is exempt from independent shareholders' approval.