Sinopec Capital Signed Equity Transfer Agreement with SCCHCL in Relation to Its First Portfolio Company

On May 9, Sinopec Capital and Sinopec Chemical Commercial Holding Company limited (hereinafter referred to as “SCCHCL”) held a signing ceremony in Sinopec Capital, marking the equity transfer of Shanghai Yeloworld Technology Co.,LTD. (hereinafter referred to as “Yeloworld”). During the signing ceremony, representatives of both companies signed the equity transfer agreement, the representatives of Finance Department (Sinopec Group), Finance Department (Sinopec Corp) and SBU of Capital Management and Financial Services of Sinopec Group delivered speeches, the management of Sinopec Capital, SCCHCL and the chairman of Yeloworld made signing remarks. The ceremony was presided over by Zhou Meiyun, Deputy Managing Director of SBU of Capital Management and Financial Services of Sinopec Group and General Manager of Sinopec Capital. Deputy Managing Director of Finance Department(Sinopec Group), Deputy Managing Director of Finance Department(Sinopec Corp), Deputy Managing Director of SBU of Capital Management and Financial Services of Sinopec Group, Executive Director and Secretary of Party Committee of SCCHCL, Chief Accountant of SCCHCL, Sinopec Capital’s Deputy Secretary of the Party Committee，Secretary of the Discipline Inspection Committee and Chairman of the Labor Union and other relevant managers, as well as Shi Xiang, Chairman of Yeloworld, attended the ceremony.

Founded in 2018, Yeloworld is Sinopec Capital’s first portfolio company. Focusing on the development of smart pallets and smart logistics, Yeloworld has been innovating the development concept and realizing the breakthrough of its own technological development by building a new global trade ecology connecting factories, logistics enterprises and downstream customers. Since Sinopec Capital’s investment in August 2019, Yeloworld has made continuous progress with the empowerment of Sinopec Capital and the support of SCCHCL, providing shared pallet services for more than 30 subsidiaries of Sinopec, and promoting the construction of Sinopec's smart chemical logistics through packaging line transformation, stereo warehouse construction and implementation of smart out-of-warehouse system. Sinopec Capital's investment in Yeloworld has met the target of finding strategic investment opportunities through financial investment, and has fulfilled its original aspiration and mission of "serving Sinopec's transformation and upgrading" entrusted by Sinopec Group.

This is Sinopec Capital’s first time to transfer the equity of its portfolio company inside of Sinopec Group, realizing diversified project exit strategies, fulfilling the notion of "explored by the capital, empowered by the main business", and taking a pioneering step in cultivating and delivering high-quality assets for Sinopec Group and creating a new engine for transformation and upgrading.

In order to better play the business synergy value of Yeloworld in the chemical sector of Sinopec, with the approval of Sinopec Group, under the strong guidance and support of Finance Department (Sinopec Group), Finance Department (Sinopec Corp), SBU of Capital Management and Financial Services of Sinopec Group and other relevant department, Sinopec Capital and SCCHCL achieved mutual benefit and win-win results in the equity transfer through active exploration and standardized transaction.

Regarding this transaction as a model, Sinopec Capital will continue exploring and cultivating more good projects with industrial synergy, give full play to the strong driving force of the combination of capital and industry, and serve the transformation and upgrading of Sinopec Group with high quality for Sinopec to extend the chain, supplement the chain and strengthen the chain.