The company and its board of directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.
Potent Energy Technology Co., Ltd. (hereinafter referred to as "Potent Energy" or the "Company") held the 13th meeting of the Sixth Board of Directors on June 12, 2026, and reviewed and approved the "Proposal on the Company and its Subsidiaries Applying for Comprehensive Credit Facility from Financial Institutions and Accepting Guarantees from Related Parties and Related Party Transactions." Related director Mr. Zhou Jinming abstained from voting. The details are as follows:
I. Overview of Credit Facility Matters
To fully promote the company's oil and gas exploration, development, and production business, raise funds for various projects, reduce financing costs, broaden financing channels, optimize the financing structure, and meet the needs of business development. The Company and its wholly-owned overseas subsidiary, Wisdom Petroleum Investment Co., Ltd. (hereinafter referred to as "Wisdom Petroleum"), plan to apply for a comprehensive credit facility from financial institutions:
- Wisdom Petroleum plans to apply to Bank of Kunlun Co., Ltd. (hereinafter referred to as "Bank of Kunlun") for a comprehensive credit facility totaling no more than RMB 300 million. The comprehensive credit facility will have a term of 3 years and will be mainly used for the development and construction of the Wuzhou 5-3 oilfield and for replacing other financial institution debts.
Based on the credit requirements of Bank of Kunlun, the Company will provide guarantee for the aforementioned credit facility for Wisdom Petroleum. Mr. Zhou Jinming, the controlling shareholder and actual controller of the Company, will provide a pledge guarantee of 20 million shares for this loan on a phased basis. After Bank of Kunlun completes the pledge of accounts receivable for the Wuzhou 5-3 oilfield, Mr. Zhou Jinming's pledge guarantee of shares will be released. The Company will not pay any guarantee fee to the related party Mr. Zhou Jinming for this guarantee.
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The Company plans to sign a supplementary loan agreement with Kunlun Trust Co., Ltd. (hereinafter referred to as "Kunlun Trust"). After repaying part of the loan, the loan amount will be reduced to RMB 300 million. After signing the "Crude Oil Sales Contract" for the development of the western area of the Wuzhou 10-3 oilfield and completing the pledge of accounts receivable, Kunlun Trust will release the pledge of accounts receivable for the Wuzhou 5-3 oilfield (for details on the loan from Kunlun Trust, please refer to the relevant announcements published on the Juchao Information Network on April 2, 2025, and December 15, 2025).
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The Company plans to conduct a sale and leaseback transaction with Far East Horizon (Tianjin) Leasing Co., Ltd. (hereinafter referred to as "Far East Horizon") for some of its seismic exploration and computer equipment assets (original value of approximately RMB 80 million). The financing amount will not exceed RMB 70 million, with a term of no more than two years, mainly to supplement the company's working capital.
This proposal still needs to be submitted to the shareholders' meeting for review. The pledge of accounts receivable for the Wuzhou 5-3 oilfield to Bank of Kunlun and the pledge of accounts receivable for the western area of the Wuzhou 10-3 oilfield to Kunlun Trust still require approval from CNOOC. There is uncertainty. The Company will release Mr. Zhou Jinming's pledge guarantee of shares and fulfill subsequent information disclosure obligations after CNOOC's approval.
II. Basic Information of Related Parties
Mr. Zhou Jinming currently serves as the Chairman and General Manager of the Company. As of the disclosure date of this announcement, Mr. Zhou Jinming holds 131,740,000 shares of the Company, accounting for 41.17% of the total share capital, and is the controlling shareholder and actual controller of the Company. Therefore, this share pledge guarantee constitutes a related party transaction.