HONG KONG SAR - Media OutReach - 7 March 2022 - Yanchang Petroleum International Limited (“Yanchang Petroleum International” or the “Company”, together with its subsidiaries, the “Group”; Stock Code: 00346) today issued a positive profit alert. According to the unaudited management accounts of the Group currently available, the Group is expected to record a profit of around HK$358 million for the year ended 31 December 2021, as compared to a loss of around HK$793 million for the fiscal year 2020.

The Group achieved a turnaround in profits for the year of 2021, which was mainly attributable to the combined effect of the profit of around HK$ 7 million generated from the oil and gas production business in Canada and the net aggregate profit of around HK$ 41 million generated from the oil and by-products trading business in the PRC. In addition, the Group recorded a net impairment recovery of around HK$ 333 million on its oil and gas assets, and accrued administration and interest expenses of around HK$ 23 million.

Mr. Feng Yinguo, Chairman of Yanchang Petroleum International, said, “The Group is encouraged by the successful turnaround of the business in 2021. Benefited from the global economic recovery and the sharp rebound of the oil prices resulting from strong oil demand coupled with the supply shortage, the performance of the Group's upstream and downstream businesses was improved. Going forward, the Group will actively coordinate and propel production and operation, improve the quality and efficiency, and capitalize on the favorable environment of the structural recovery of the international oil and gas industry, thereby maximizing the benefits of our shareholders.”