This is a voluntary announcement made by Qingdao Port International Co., Ltd. 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-Weifang-Central and Northern Shandong oil pipeline construction 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 Dongying City in the north, opening the "Golden Channel" of crude oil industry chain from the Yellow Sea to the Bohai Bay. 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 and the Dongjiakou Port-Weifang-Central and Northern Shandong oil pipeline construction project. The Dongwei Phase III starts from the Guangrao First Station in the Guangrao reservoir area, Guangrao County, Dongying City (), and ends at Lihuayi Terminal Station in Lihuayi Petrochemical area, Lijin County, Dongying City (), passing through Guangrao County, Dongying District, Kenli District 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 (), 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. 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., Shandong Haike Chemical Group Co., Ltd., Shandong Kenli Petrochemical Group Co., Ltd., Lihuayi Lijin Refining Co., Ltd. (), 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.