Sinopec Shanghai Petrochemical approves connected transactions, leadership changes

Sinopec Shanghai Petrochemical Company Limited's Eleventh Board of Directors approved several key resolutions at its twenty-second meeting on December 16, 2025. These include an entrusted contract and new framework agreements for R&D and storage services, as well as leadership appointments. The company will enter into an entrusted contract for construction work on a thermoplastic elastomer project with Shanghai Jinshan Baling New Materials Co., Ltd. for 52,722,288.14 yuan, to be signed by December 31, 2025. This is a connected transaction as Sinopec Shanghai Petrochemical owns 50% of Shanghai Jinshan Baling New Materials.

Additionally, the board approved a new scientific and technological R&D framework agreement with China Petrochemical Corporation and a storage services agreement with Baishawan Branch of China Petrochemical Corporation Commercial Reserve Co., Ltd., both by December 31, 2025. The R&D framework has an annual cap of 19,000 million yuan for services provided to China Petrochemical Corporation and 28,000 million yuan for services received. The storage services agreement has an annual cap of 11,400 million yuan. All these transactions are classified as connected transactions under listing rules.

The board also approved the election of Lu Zhiyong as vice chairman and a member of the Strategy and ESG Committee, with his term commencing from the date of board approval until the end of the Eleventh Board of Directors. All connected transactions received unanimous approval from independent non-executive directors after their dedicated review.