ZHONGHUA GAS (08246) signed a project technical consulting agreement with Shandong Longzhong.

ZHONGHUA GAS (08246) announced that on October 22, 2025, the company entered into a project technical consulting agreement with Shandong Longzhong Information Technology Co., Ltd. (Shandong Longzhong). The company agreed to engage Shandong Longzhong to conduct feasibility studies on the development of fuel and natural gas supply networks in Laos, as well as to conduct market research. The main terms of the project technical consulting agreement are as follows: (i) Shandong Longzhong is required to assist the company in reviewing, revising, and negotiating the feasibility study, as well as negotiating and reviewing the concession agreement with the Laos Ministry of Industry and Commerce (including providing technical documents and materials). (ii) The feasibility study report prepared by Shandong Longzhong must meet the requirements set by the Laos government authorities. Shandong Longzhong must assist the company in ensuring timely approval of the feasibility study report by the relevant Laos government authorities. (iii) Based on the work and services provided by Shandong Longzhong under the project technical consulting agreement, adjustments must be made taking into account the environment and conditions of the project location. It is expected that Shandong Longzhong will submit the feasibility study report to the company within two months of signing the project technical consulting agreement. The group has been actively expanding its business scope and geographical coverage to achieve diversification and global expansion. The Board of Directors believes that strategic cooperation with the Laos Ministry of Industry and Commerce will allow the group to enter the finished oil and gas business in Laos, diversify its existing business portfolio, and expand its revenue base. In accordance with the Memorandum of Understanding, the company is required to conduct a feasibility study. Given Shandong Longzhong's background and expertise in the petrochemical industry, the Board of Directors believes that entering into the project technical consulting agreement will enable the group to conduct comprehensive feasibility studies on the potential development of the fuel and natural gas supply network in Laos with the professional knowledge of Shandong Longzhong in the global energy and petrochemical markets.