According to CNPC Capital's announcement, the company holds 20% of the shares in the participating company Kunlun Capital. Kunlun Capital plans to increase capital by 11.60 billion yuan. Based on development strategy needs, the company decided to give up priority pledging capital for this capital increase, and related parties China Petroleum Group and CNPC will pledge additional capital. After the transaction was completed, the company's shareholding ratio of Kunlun Capital was changed from 20.00% to 11.28%, which will not cause changes in the scope of the company's consolidated statements. This transaction constitutes a related transaction. It has been reviewed and approved by the board of directors of the company. There is no need to submit it to the shareholders' meeting for review, and it does not constitute a major asset restructuring.

According to CNPC Capital's announcement, the company holds 20% of the shares in the participating company Kunlun Capital. Kunlun Capital plans to increase capital by 11.60 billion yuan. Based on development strategy needs, the company decided to give up priority pledging capital for this capital increase, and related parties China Petroleum Group and CNPC will pledge additional capital. After the transaction was completed, the company's shareholding ratio of Kunlun Capital was changed from 20.00% to 11.28%, which will not cause changes in the scope of the company's consolidated statements. This transaction constitutes a related transaction. It has been reviewed and approved by the board of directors of the company. There is no need to submit it to the shareholders' meeting for review, and it does not constitute a major asset restructuring.