On June 11, the Shanghai International Energy Exchange (INE) issued an announcement, agreeing to recognize Qingdao ZhenHua Oil Storage Co., Ltd. as a designated delivery warehouse for the INE Crude Oil Futures Group. This marks the completion of Qingdao Storage Company's application to become a designated delivery warehouse for crude oil futures, and represents a significant progress in the expansion of its tank farm business.

Since the commencement of operations at the storage facility in June 2023, Qingdao Storage Company has been dedicated to enhancing operational efficiency and accelerating the cultivation and expansion of its business. With the full support of both shareholders, Qingdao Storage Company actively engaged in in-depth discussions with the Shanghai Futures Exchange regarding the application for the new operational tank farm to become a designated crude oil delivery warehouse, and prepared all required application materials in advance according to the standards. To improve the efficiency of the qualification application process, Qingdao Storage Company innovatively proposed a new "guarantee" model for the Shandong Port Group's centralized delivery center. After a series of efforts, the storage facility successfully passed the on-site inspection by the Shanghai Futures Exchange in March of this year. In May, the public disclosure and approval process for the delivery warehouse was officially initiated, and the disclosure was recently completed.

Qingdao Storage Company will continue to carry out all follow-up work, continuously strengthen safety management at the storage facility, strictly control various risks, provide quality services, and continuously improve the operational quality and efficiency of crude oil futures delivery business. This will help expand the company's synergies in trading and transportation, and provide new momentum for the high-quality development of ZhenHua Oil.