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Qingdao Port International Co., Ltd. 青 島 港 國 際 股 份 有 限 公 司 (A joint stock company established in the People’s Republic of with limited liability) (Stock Code: 06198)

VOLUNTARY ANNOUNCEMENT

UPDATE ON THE PHASE III OF OIL PIPELINE PROJECT

This is a voluntary announcement made by Port International Co., Ltd. (the “Company”, together with its subsidiaries, the “Group”).

Reference is made to the voluntary announcement of the Company dated 28 December 2018, in relation to the groundbreaking ceremony for the phase III of the Dongjiakou Port--Central and Northern oil pipeline construction project (the “Phase III of Oil Pipeline Project”). The Phase III of Oil Pipeline Project was put into trial operation on 8 January 2020. As of the date of this announcement, the Dongjiakou Port-Weifang-Central and Northern Shandong oil pipeline has extended to City in the north, opening the “Golden Channel” of crude oil industry chain from the to the .

SUMMARY OF THE PHASE III OF OIL PIPELINE PROJECT

The Phase III of Oil Pipeline Project is the key project for the transformation of old and new energy in Shandong Province, and the key construction project of the Group. The Phase III of Oil Pipeline Project was fully completed on 20 December 2019, and passed the expert trial production review on 26 December 2019, with a planned annual output capacity of 10 million tons. The Phase III of Oil Pipeline Project is divided into two parts: the Dongjiakou Port-Weifang-Central and Northern Shandong oil pipeline construction project (Phase III) (the “Dongwei Phase III”) and the Dongjiakou Port-Weifang- Central and Northern Shandong oil pipeline construction project (Phase III East Line) (the “Dongwei Phase III East Line”).

—1— The Dongwei Phase III starts from the Guangrao First Station in the Guangrao reservoir area, , Dongying City (東營市廣饒縣廣饒罐區內廣饒首站), and ends at Lihuayi Terminal Station in Lihuayi Petrochemical area, , Dongying City (東營市利津縣利華益石化內的利華益末站), passing through Guangrao County, Dongying , and Lijin County within of Dongying City. The total length of the pipeline is approximately 78.5 kilometers, with 2 stations and 4 valve chambers. The Dongwei Phase III passed the expert trial production review on 26 December 2019 and is qualified for oil delivery.

The Dongwei Phase III East Line starts from the Qirun First Station in the Qirun reservoir area of Dongying City (東營市齊潤油庫內齊潤首站), including the Kenli branch line, the Shenchi branch line and the Haike branch line, with 4 stations and one valve chamber. The Dongwei Phase III East Line passed the expert trial production review on 26 December 2019 and is qualified for oil delivery.

SIGNIFICANCE OF THE PHASE III OF OIL PIPELINE PROJECT

The completion of the Phase III of Oil Pipeline Project realizes the “door-to-door” transportation of crude oil from terminals to factories, promotes refining enterprises in Shandong Province to save the logistics and transportation costs, serves many refineries including Shandong Shenchi Chemical Group Co., Ltd. (山東神馳化工集團有限公司), Shandong Haike Chemical Group Co., Ltd. (山東海科化工集團有限公 司), Shandong Kenli Petrochemical Group Co., Ltd. (山東墾利石化集團有限公司), Lihuayi Lijin Refining Co., Ltd. (利華益利津煉化有限公司), and further facilitates the integration of the Group and refining enterprises in Shandong Province, which will lay a solid foundation for the transformation and upgrade of the liquid bulk handling and ancillary services sector of the Group, increasing the volume and improving the revenue and building a world-class logistics hub port. After the Phase III of Oil Pipeline Project has been fully put into operation, the safety, environmental and economic benefits will be more significant, whilst traffic and production safety accidents will be greatly reduced.

By order of the Board Qingdao Port International Co., Ltd. LI Fengli Chairman

Qingdao, the PRC, 8 January 2020

As at the date of this announcement, the executive Directors of the Company are Mr. LI Fengli, Mr. ZHANG Jiangnan and Ms. JIANG Chunfeng; the non-executive Directors are Mr. JIAO Guangjun, Mr. ZHANG Wei and Mr. CHU Xiaozhong; and the independent non-executive Directors are Ms. LI Yan, Mr. JIANG Min and Mr. LAI Kwok Ho.

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