Rongsheng Petro Chemical boosts guarantees, divests subsidiary

Rongsheng Petro Chemical Co., Ltd. announced an estimated mutual guarantee quota of RMB 11,379,600 thousand for 2026, which represents 259.46% of its 2024 audited net assets. This substantial increase, approved by the board of directors, aims to optimize financial resources for subsidiaries including Zhejiang Petrochemical Co., Ltd. and Ningbo Zhongjin Petrochemical Co., Ltd. Shareholder approval is pending.

Concurrently, Rongsheng Petro Chemical’s wholly-owned subsidiary, Rongsheng New Materials (Zhoushan) Co., Ltd., will transfer its 100% equity in Rongsheng Energy (Zhoushan) Co., Ltd. to Zhejiang Rongsheng Holding Group Co., Ltd. for RMB 50,824.10 thousand. This related-party transaction, approved by independent directors and the board, is part of a strategic focus and ensures Rongsheng Energy will no longer be consolidated within Rongsheng Petro Chemical's financial statements.

In additional governance updates, the board approved new internal policies, including the "Management System for Departure of Directors and Senior Management Personnel," the "Internal Audit System," and the "Internal Review System for Information Release and Response on the Investor Interaction Platform," all effective December 8, 2025. These measures aim to enhance corporate governance and transparency.