Earnings release
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- 1 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ʮ̡ (Incorporate d in Hong Kong with limited liability under the Companie s Ordinance) StockC odes: 00883 (HKD counter) and 80883 (RMB counter) CNOOC Limited Announcement of 2026 Interim Results (Unaudited) FINANCIAL AND BUSINESS SUMMARY First half of 2026 % change over First half of 2025 Net production of oil and gas 398.7 million BOE 3.7% Oil and gas sales RMB206.1 billion 20.0% Net profit attributable to equity shareholders of the Company RMB85.8 billion 23.4% Basic earnings per share RMB1.81 23.4% Diluted earnings per share RMB1.81 23.4% Interim dividend (tax inclusive) HK$0.94 per share 28.8% CHAIRMAN’S STATEMENT Dear shareholders, In the first half of 2026, the macro economic environment remained complex and volatile, with external uncertainties continuing to rise. Faced with multiple challenges such as sharp fluctuations in international oil prices and rising expectations of global liquidity tightening, the Company remained focused and proactive. We achieved steady improvements in production and operations, set record highs across multiple indicators, and delivered satisfactory results. The Company focused on its core mission of increasing reserves and production, and continued to strengthen its resource base. Adhering to the value-driven exploration approach and the strategy of targeting large and medium-sized oil and gas fields, we intensified risk exploration and step-out exploration in new areas, new fields and new plays, while actively pursuing high-quality exploration interests. In China, we made four new oil and gas discoveries and successfully appraised 16 oil and gas bearing structures, with onshore unconventional natural gas reserves growing steadily. Overseas, we successfully acquired three new exploration blocks in Brazil and Indonesia, further expanding our global exploration footprint.
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- 2 - The Company improved the efficiency of oil and gas field development and remained resolute in strengthening, optimizing and expanding its core business foundation. We spared no effort in advancing the construction of key projects, deeply implemented engineering standardization and the application of Excellent Drilling and Completion, effectively shortening the production capacity construction cycle, with a total of five new projects successfully brought on stream. Through refined management, we effectively contained the natural decline rate and achieved stable production and efficient development of producing oilfields. In the first half of the year, the Company’s net oil and gas production reached a new high, with both domestic and overseas production setting new records. The Company remained committed to driving industrial innovation through technological innovation, and continuously strengthening its core competitiveness. We intensified research and application of key technologies for reserves and production growth, achieving significant breakthroughs in critical areas such as heavy oil thermal recovery, low-permeability fracturing, and ultra-deep extended-reach drilling. We steadily implemented the digital and intelligent transformation, formulated a scenario blueprint for the “Digital & Intelligent CNOOC” initiative, fully deployed the “Haineng-Zhiqing” digital platform, had our high-value scenarios and high-quality datasets selected as typical cases at the World AI Conference, and fully leveraged digital and intelligent technologies to empower our business operations and management. The Company coordinated green oil and gas production with the large-scale deployment of new energy, steadily advancing its low-carbon transition. We enhanced energy substitution and continued to expand the use of green electricity through onshore power projects and other initiatives. The “Haiyou Anlan”, China’s first tension-leg floating wind power demonstration project, was commissioned and connected to the grid for power generation in August, while the construction of the deep- sea wind power demonstration project CZ7 is progressing in an orderly manner. We steadily promoted the development of carbon-negative industries, with China’s first offshore CCUS project fully commissioned in the South China Sea. We have always firmly upheld the bottom line of safety in development and maintained an overall stable safety and environmental performance despite the increase in operational workload, underpinning high-quality development with a high level of safety. The Company achieved a significant improvement in operational quality and efficiency, with its value creation capabilities continuously enhanced. In the first half of the year, the Company recorded operating revenue of RMB242.7 billion, representing a year-on-year increase of 16.9%, and net profit attributable to equity shareholders of the Company of RMB85.8 billion, representing a year-on-year increase of 23.4%, both reaching the highest levels for any interim period in the Company’s history. Our all-in cost was US$29.7 per BOE, maintaining a strong cost competitiveness. To actively reward shareholders, the Board of Directors has resolved to declare an interim dividend of HK$0.94 per share (tax inclusive) for the first half of 2026, setting a record high since its listing. In the second half of the year, we will stay focused on our annual production and operation targets, spare no effort to increase reserves and production, intensify research on core technologies, steadily grow our new energy business, further tap the potential for quality and efficiency enhancement, and strictly uphold the bottom line of safety and environmental protection. With robust operating performance, we will deliver returns to our shareholders, and through practical efforts and a strong sense of responsibility, accelerate our drive to build a world-class energy and resource group with distinctive marine features. Zhang Chuanjiang Chairman 26 August 2026
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- 3 - INTERIM RESULTS The board of directors (the “Board”) of CNOOC Limited (the “Company”) is pleased to announce the unaudited interim results of the Company and its subsidiaries for the six months ended 30 June 2026 as follows: INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2026 (All amounts expressed in millions of Renminbi, except per share data) Six months ended 30 June Notes 2026 2025 REVENUE Revenue recognised from contracts with customers Oil and gas sales 2 206,086 171,745 Marketing revenues 2 31,456 31,058 Other revenue 5,118 4,805 242,660 207,608 EXPENSES Operating expenses (19,572) (18,277) Taxes other than income tax (12,680) (9,903) Exploration expenses (7,855) (5,233) Depreciation, depletion and amortisation (42,385) (39,318) Special oil gain levy (9,734) (1,607) Impairment and provision recognised, net (3) (59) Reversal of expected credit loss 19 – Crude oil and product purchases (27,056) (27,807) Selling, administrative and transportation expenses (5,459) (5,329) Others (5,199) (4,973) (129,924) (112,506) PROFIT FROM OPERATING ACTIVITIES 112,736 95,102 Interest income 2,258 2,481 Finance costs 4 (3,011) (3,137) Exchange gains, net 613 1,204 Investment gain/(loss) 332 (124) Share of profits of associates 284 316 Share of profits/(losses) of a joint venture 326 (1,140) Other expense, net (25) (43) PROFIT BEFORE TAX 113,513 94,659 Income tax expense 5 (27,644) (25,066) PROFIT FOR THE PERIOD 85,869 69,593 Attributable to: Equity shareholders of the Company 85,818 69,533 Non-controlling interests 51 60 85,869 69,593
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- 4 - INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED) (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2026 (All amounts expressed in millions of Renminbi, except per share data) Six months ended 30 June Notes 2026 2025 OTHER COMPREHENSIVE EXPENSE Other comprehensive expense (net of tax) attributable to equity shareholders of the Company Items that may be subsequently reclassified to profit or loss: Exchange differences on translation of foreign operations (9,877) (2,087) Share of other comprehensive income/(expense) of associates 27 (2) Cash flow hedge reserves 7 36 Other items that will not be reclassified to profit or loss: Change on remeasurement of defined benefit plan 12 83 Other comprehensive expense (net of tax) attributable to non- controlling interests – – OTHER COMPREHENSIVE EXPENSE FOR THE PERIOD, NET OF TAX (9,831) (1,970) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 76,038 67,623 Attributable to: Equity shareholders of the Company 75,987 67,563 Non-controlling interests 51 60 76,038 67,623 EARNINGS PER SHARE FOR THE PERIOD ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE COMPANY Basic (RMB Yuan) 6 1.81 1.46 Diluted (RMB Yuan) 6 1.81 1.46 Details of the interim dividends declared for the period are disclosed in note 7.
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- 5 - INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) 30 June 2026 (All amounts expressed in millions of Renminbi) Notes 30 June 2026 31 December 2025 NON-CURRENT ASSETS Property, plant and equipment 674,400 666,370 Right-of-use assets 12,671 11,834 Intangible assets 15,792 16,522 Investments in associates 23,941 24,072 Investment in a joint venture 21,237 21,747 Debt investment 9,158 9,305 Equity investments 23 23 Deferred tax assets 22,185 23,579 Other non-current assets 29,287 29,724 Total non-current assets 808,694 803,176 CURRENT ASSETS Inventories and supplies 6,725 6,090 Trade receivables 8 43,960 32,971 Other financial assets 11,892 25,998 Derivative financial instruments 178 – Other current assets 16,676 15,629 Time deposits with maturity over three months but within one year 152,678 136,016 Cash and cash equivalents 161,700 78,679 Total current assets 393,809 295,383 CURRENT LIABILITIES Loans and borrowings 1,447 1,308 Trade and accrued payables 9 72,251 59,631 Lease liabilities 2,602 2,046 Contract liabilities 607 804 Other payables and accrued liabilities 35,467 10,625 Derivative financial instruments 327 20 Taxes payable 27,967 16,819 Total current liabilities 140,668 91,253 NET CURRENT ASSETS 253,141 204,130 TOTAL ASSETS LESS CURRENT LIABILITIES 1,061,835 1,007,306 NON-CURRENT LIABILITIES Loans and borrowings 56,125 58,832 Lease liabilities 7,914 7,614 Provision for dismantlement 118,734 116,039 Deferred tax liabilities 14,583 13,589 Other non-current liabilities 5,920 6,048 Total non-current liabilities 203,276 202,122 NET ASSETS 858,559 805,184 EQUITY Issued capital 10 75,180 75,180 Reserves 780,874 727,570 Equity attributable to equity shareholders of the Company 856,054 802,750 Non-controlling interests 2,505 2,434 TOTAL EQUITY 858,559 805,184
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- 6 - NOTES 30 JUNE 2026 (All amounts expressed in millions of Renminbi, except number of shares and unless otherwise stated) 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES Basis of preparation The interim condensed consolidated financial statements for the six months ended 30 June 2026 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and Hong Kong Accounting Standard 34 Interim Financial Reporting as well as the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules of Stock Exchange”) of The Stock Exchange of Hong Kong Limited (“HKSE”). The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company and its subsidiaries’ annual financial statements for the year ended 31 December 2025. The financial information relating to the year ended 31 December 2025 that is included in this announcement as comparative information does not constitute the Company’s statutory annual consolidated financial statements for that year but is derived from those consolidated financial statements. Further information relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) (the “Companies Ordinance”) is as follows: The Company has delivered the consolidated financial statements for the year ended 31 December 2025 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance. The Company’s auditor has reported on those consolidated financial statements. The auditor’s report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its reports; and did not contain a statement under section 406(2), 407(2) or 407(3) of the Companies Ordinance. Changes in accounting policies The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Company and its subsidiaries’ annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended IFRS Accounting Standards/HKFRS Accounting Standards for the first time for the current period’s financial information. Amendments to IFRS 9/HKFRS 9 and IFRS 7/HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9/HKFRS 9 and IFRS 7/HKFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to IFRS Accounting Standards – Volume 11/HKFRS Accounting Standards – Volume 11 Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7/HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 The application of the amendments to IFRS Accounting Standards/HKFRS Accounting Standards and Annual Improvements for the first time in the current period has had no material impact on the disclosures or the amounts recognised in the interim condensed consolidated financial statements of the Company and its subsidiaries.
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- 7 - 2. OIL AND GAS SALES AND MARKETING REVENUES Oil and gas sales represent the sales of oil and gas, net of royalties and obligations to government and other mineral interest owners. Oil and gas sales revenue is recognised at a point in time when oil and gas are delivered to the customer, i.e., when the customer obtains the control of oil and gas and it is probable that the Company and its subsidiaries have present right to payment and collection of the consideration. Marketing revenue principally represents the sales of oil and gas belonging to the foreign partners under the production sharing contracts and revenues from the trading of oil and gas through the Company’s subsidiaries, which is recognised at a point in time when oil and gas are delivered to the customer, i.e., when the customer obtains the control of oil and gas and it is probable that the Company and its subsidiaries have present right to payment and collection of the consideration. The cost of the oil and gas sold is included in “Crude oil and product purchases” in the interim condensed consolidated statement of profit or loss and other comprehensive income. The payment is typically due within 30 days after the delivery of oil and gas. For contracts where the period between payment and transfer of the associated goods is less than one year, the Company and its subsidiaries apply the practical expedient of not adjusting the transaction price for any significant financing component. 3. SEGMENT INFORMATION The Company and its subsidiaries report the business through three operating segments: exploration and production (“E&P”), trading business and corporate. The division of these operating segments is made because the Company’s chief operating decision makers make decisions on resource allocation and performance evaluation by reviewing the financial information of these operating segments. The E&P segment is engaged in the upstream operating activities of the conventional oil and gas, shale oil and gas, oil sands and other unconventional oil and gas business. The trading business segment is engaged in oil and gas trade business, mainly including the sales of crude oil and gas belonging to foreign partners under production sharing contracts, as well as third-party trade business. The corporate segment is engaged in headquarters management, fund management, and research and development.
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- 8 - The following table presents revenue, profit or loss, assets and liabilities information for the Company and its subsidiaries’ operating segments: E&P Trading business Corporate Eliminations Consolidated Six months ended 30 June Six months ended 30 June Six months ended 30 June Six months ended 30 June Six months ended 30 June 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 External revenue 46,676 45,025 195,682 162,277 302 306 – – 242,660 207,608 Intersegment revenue* 163,905 131,415 (164,163) (131,143) 330 349 (72) (621) – – Total revenue** 210,581 176,440 31,519 31,134 632 655 (72) (621) 242,660 207,608 Segment profit for the period 84,397 68,619 3,401 2,451 22,853 6,951 (24,782) (8,428) 85,869 69,593 E&P Trading business Corporate Eliminations Consolidated 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 Other segment information Segment assets 704,694 605,932 56,006 44,756 658,779 586,318 (216,976) (138,447) 1,202,503 1,098,559 Segment liabilities (369,935) (322,924) (35,323) (28,146) (189,722) (122,497) 251,036 180,192 (343,944) (293,375) * Certain oil and gas produced by the E&P segment are sold via the trading business segment. For the Company’s chief operating decision maker’s assessment of segment performance, these revenues are reclassified back to E&P segment. ** 64% (six months ended 30 June 2025: 63%) of the Company and its subsidiaries’ revenues recognised in the interim condensed consolidated statement of profit or loss and other comprehensive income are generated from the PRC customers, and revenues generated from customers in other locations are individually less than 10%. 4. FINANCE COSTS Accretion expenses of approximately RMB1,913 million (six months ended 30 June 2025: approximately RMB1,911 million) relating to the provision for dismantlement liabilities have been recognised in the interim condensed consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June 2026. 5. INCOME TAX The Company and its subsidiaries are subject, on an entity basis, to income taxes on profits arising in or derived from the tax jurisdictions in which the Company and its subsidiaries are domiciled and operate. The Company is subject to profits tax at a rate of 16.5% (six months ended 30 June 2025: 16.5%) on profits arising in or derived from Hong Kong. Principal subsidiaries of the Company domiciled within the PRC are subject to income tax at rates ranging from 15% to 25% (six months ended 30 June 2025: 15% to 25%). Principal subsidiaries of the Company domiciled outside the PRC are subject to income tax at rates ranging from 17% to 82% (six months ended 30 June 2025: 10% to 82%). Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Company and its subsidiaries operate, the Company is in the process of assessing the potential exposure to Pillar Two income taxes. Based on the current assessment, the Pillar Two effective tax rates in most of the jurisdictions in which the Company and its subsidiaries operate are above 15%.
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- 9 - 6. EARNINGS PER SHARE Six months ended 30 June 2026 2025 Earnings: Profit for the purpose of basic and diluted earnings per share calculation 85,818 69,533 Number of shares: Weighted average number of ordinary shares for the purpose of basic earnings per share and diluted earnings per share 47,529,953,984 47,529,953,984 Earnings per share – Basic and diluted (RMB Yuan) 1.81 1.46 The Company had no potentially dilutive ordinary shares in issue during the six months ended 30 June 2026 and 2025. 7. DIVIDENDS On 26 August 2026, the Board of Directors declared an interim dividend of HK$0.94 (tax inclusive) per share (six months ended 30 June 2025: HK$0.73 (tax inclusive) per share), totaling approximately HK$44,678 million (tax inclusive) (equivalent to approximately RMB38,805 million (tax inclusive)) (six months ended 30 June 2025: approximately RMB31,602 million (tax inclusive)), based on the number of issued shares as at the declaration date. Pursuant to the Enterprise Income Tax Law of the People’s Republic of China and related laws and regulations, the Company is regarded as a Chinese Resident Enterprise, and thus is required to withhold corporate income tax at the rate of 10% when it distributes dividends to its non-resident enterprise (as defined in the Enterprise Income Tax Law of the People’s Republic of China) holders of Hong Kong shares, with effect from the distribution of the 2008 final dividend. In respect of all holders of Hong Kong shares whose names appear on the Company’s register of shareholders and who are not individuals (including HKSCC Nominees Limited, corporate nominees or trustees such as securities companies and banks, and other entities or organisations, which are all considered as non-resident enterprise holders of Hong Kong shares in the Enterprise Income Tax Law of the People’s Republic of China), the Company will distribute the dividend after deducting corporate income tax of 10%. 8. TRADE RECEIVABLES The aging of trade receivable and related expected credit impairment loss allowance is analysed as follows: 30 June 2026 Trade receivables Expected credit impairment loss allowance Proportion of accrual (%) Within 1 year 43,962 39 0.09 1 year-2 years 2 – – 2 years-3 years 4 4 100.00 Over 3 years 89 54 60.67 44,057 97 0.22
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- 10 - 31 December 2025 Trade receivables Expected credit impairment loss allowance Proportion of accrual (%) Within 1 year 32,995 61 0.18 1 year-2 years 2 1 50.00 2 years-3 years 4 4 100.00 Over 3 years 90 54 60.00 33,091 120 0.36 The credit terms of the Company and its subsidiaries are generally within 30 days after the delivery of oil and gas. Payment in advance or security deposit may be required from customers, depending on their credit ratings. Trade receivables are non-interest bearing. Substantially all customers have strong credit quality and good repayment history, with no significant receivables past due. 9. TRADE AND ACCRUED PAYABLES 30 June 2026 31 December 2025 Amounts due to suppliers and partners 69,178 57,575 Amounts due to third party trader 3,073 2,056 72,251 59,631 As at 30 June 2026 and 31 December 2025, substantially all the trade and accrued payables were aged within six months. The trade and accrued payables are non-interest bearing. 10. SHARE CAPITAL Number of shares Issued share capital equivalent of RMB million Issued and fully paid: Ordinary shares with no par value as at 1 January 2025, 31 December 2025 and 30 June 2026 47,529,953,984 75,180 Of which: Shares listed on HKSE 44,539,953,984 Shares listed on SSE 2,990,000,000 There were no changes in the share capital and number of shares during the six months ended 30 June 2026. 11. SUBSEQUENT EVENTS The Company and its subsidiaries have no significant subsequent events needed to be disclosed in the interim condensed consolidated financial statements.
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- 11 - AUDIT COMMITTEE The Audit Committee of the Board (the “Audit Committee”) has reviewed together with the management the accounting principles and practices adopted by the Company and its subsidiaries and discussed the risk management, internal control and financial reporting matters. The interim results for the six months ended 30 June 2026 are unaudited, but have been reviewed by Ernst & Young in accordance with Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, issued by the Hong Kong Institute of Certified Public Accountants. The interim results announcement for the six months ended 30 June 2026 has been reviewed by the Audit Committee. PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES For the six months ended 30 June 2026, CNOOC Petroleum North America ULC (“CPNA”, an indirect wholly-owned subsidiary of the Company) repurchased and cancelled the following bonds issued by it as issuer by way of general offers: Issuer Maturity Date Coupon Rate Face Amount (USD) Face Amount Repurchased (USD) Percentage of Repurchase Outstanding Amount as at 30 June 2026 (USD) CPNA 15 March 2032 7.875% 309,172,000 100,000 0.03% 309,072,000 CPNA 10 March 2035 5.875% 419,806,000 232,000 0.06% 419,574,000 CPNA 15 May 2037 6.400% 748,048,000 26,912,000 3.60% 721,136,000 CPNA 30 July 2039 7.500% 572,093,000 22,700,000 3.97% 549,393,000 None of the above bonds was listed on HKSE or Shanghai Stock Exchange (“SSE”). Save as disclosed in this interim results announcement, there was no purchase, sale or redemption by the Company, or any of its subsidiaries, of its listed securities (including sale of treasury shares) during the six months ended 30 June 2026. As at 30 June 2026, the Company did not hold any treasury shares. COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE For the six months ended 30 June 2026, the Company has complied with all code provisions set out in Part 2 of Appendix C1 to the Listing Rules of Stock Exchange. PROVISIONS FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted a Code of Ethics for Directors and Senior Management (“Code of Ethics”) incorporating the regulatory requirements in relation to securities transactions by directors contained in the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix C3 to the Listing Rules of Stock Exchange, the Securities Law of the People’s Republic of China and the Listing Rules of SSE. All directors of the Company (the “Directors”) have confirmed that they have complied, during the six months ended 30 June 2026, with the Code of Ethics and the required standards set out in the Model Code.
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- 12 - CHANGES IN INFORMATION OF DIRECTORS Pursuant to Rule 13.51B of the Listing Rules of Stock Exchange and the relevant regulations of the China Securities Regulatory Commission and the SSE, the changes in information of Directors subsequent to the date of the latest annual report of the Company and up to the date of this interim results announcement are set out below: Name of Director Details of Changes Huang Yongzhang Appointed as the Vice Chairman of the Board, an Executive Director, the Chief Executive Officer, the President and a member of the Strategy and Sustainability Committee of the Company with effect from 20 March 2026 Yan Hongtao Resigned as an Executive Director, the President, a member of the Strategy and Sustainability Committee and the Chief Safety Officer of the Company, with effect from 20 March 2026 Mu Xiuping Resigned as an Executive Director of the Company with effect from 20 March 2026 MISCELLANEOUS The Directors are of the opinion that there have been no material changes to the information published in the Company’s annual report for the year ended 31 December 2025, other than those disclosed in this interim results announcement. INTERIM DIVIDEND DISTRIBUTION PLAN AND CLOSURE OF HONG KONG REGISTER OF MEMBERS At the Company’s 2025 annual general meeting held on 3 June 2026, the Board was authorized to decide the Company’s 2026 interim dividend distribution plan. In overall consideration of situations such as the operating results, financial position and cash flow of the Company, to provide returns to our shareholders, the Board has resolved to declare an interim dividend of HK$0.94 per share (tax inclusive) for the first half of 2026. Dividends payable shall be denominated and declared in HKD, among which, dividend for A shares will be paid in RMB, applying an exchange rate which equals to the average central parity rate between HKD and RMB announced by the People’s Bank of China in the week before the Board declared the interim dividend; dividend for Hong Kong shares will be paid in HKD. The register of members of the shares of the Company listed on the Main Board of the HKSE (the “Hong Kong Shares”) (the “Register of Members”) will be closed from 14 September 2026 (Monday) to 18 September 2026 (Friday) (both days inclusive) during which no transfer of the Hong Kong Shares can be registered. In order to qualify for the interim dividend, holders of Hong Kong Shares are reminded to ensure that all instruments of transfer of the Hong Kong Shares accompanied by the relevant share certificate(s) must be lodged with the Company’s Hong Kong share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong, not later than 4:30 p.m. on 11 September 2026 (Friday). The interim dividend will be paid on or around 16 October 2026 (Friday) to shareholders whose names appear on the Register of Members on 18 September 2026 (Friday) (being the record date). For holders of A shares of the Company, please refer to the Company’s announcement in relation to the 2026 interim dividend distribution plan published on the websites of the SSE and the Company.
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- 13 - WITHHOLDING AND PAYMENT OF ENTERPRISE INCOME TAX FOR NON-RESIDENT ENTERPRISES IN RESPECT OF 2026 INTERIM DIVIDEND Pursuant to the “Enterprise Income Tax Law of the People’s Republic of China”, the “Regulations on the Implementation of the Enterprise Income Tax Law of the People’s Republic of China” and the “Notice of the State Administration of Taxation on Issues about the Determination of Chinese-Controlled Enterprises Registered Abroad as Resident Enterprises on the Basis of Their Body of Actual Management”, the Company has been confirmed as a resident enterprise of the People’s Republic of China (the “PRC”) and the withholding and payment obligation lies with the Company. The Company is required to withhold and pay 10% enterprise income tax when it distributes the 2026 interim dividend to its non-resident enterprise (as defined in the “Enterprise Income Tax Law of the People’s Republic of China”) holders of Hong Kong Shares listed on the Register of Members. In respect of all holders of Hong Kong Shares whose names appear on the Register of Members as at 18 September 2026 (Friday) who are not individual natural person (including HKSCC Nominees Limited, corporate nominees or trustees such as securities companies and banks, and other entities or organisations, which are all considered as non-resident enterprise holders of Hong Kong Shares), the Company will distribute the 2026 interim dividend after deducting enterprise income tax of 10%. The Company will not withhold and pay the individual income tax in respect of the 2026 interim dividend payable to any natural person holders of Hong Kong Shares whose names appear on the Register of Members as at 18 September 2026 (Friday). Investors who invest in the Hong Kong Shares through the SSE (the “Shanghai-Hong Kong Stock Connect investors”), and investors who invest in the Hong Kong Shares through the Shenzhen Stock Exchange (the “Shenzhen-Hong Kong Stock Connect investors”), are investors who hold shares through HKSCC Nominees Limited, and in accordance with the above requirements, the Company will pay to HKSCC Nominees Limited the amount of the 2026 interim dividend after withholding for payment of the 10% enterprise income tax. If any resident enterprise (as defined in the “Enterprise Income Tax Law of the People’s Republic of China”) holder of Hong Kong Shares listed on the Register of Members which is duly incorporated in the PRC or under the laws of a foreign country (or a region) but with a PRC-based de facto management body, or any non-resident enterprise holder of Hong Kong Shares who is subject to a withholding tax rate of less than 10% pursuant to any tax treaty between the country of residence of such holders of Hong Kong Shares and the PRC or tax arrangements between mainland China and Hong Kong or Macau, or any other non-resident enterprise holder of Hong Kong Shares who may be entitled to a deduction or exemption of enterprise income tax in accordance with the applicable PRC rules, does not desire to have the Company withhold and pay the total amount of the said 10% enterprise income tax, it shall lodge with Computershare Hong Kong Investor Services Limited documents from its governing tax authority confirming its PRC resident enterprise status, or the documents in support that a withholding tax of less than 10% is required to be paid pursuant to the above-mentioned tax treaty or arrangements, or the documents confirming its entitlement to a deduction or exemption of enterprise income tax in accordance with the applicable PRC rules at or before 4:30 p.m. on 11 September 2026 (Friday). If anyone would like to change the identity of the holders of Hong Kong Shares, please enquire about the relevant procedures with the nominees or trustees. The Company will withhold and pay the enterprise income tax for its non-resident enterprise holders of Hong Kong Shares strictly in accordance with the relevant laws and requirements of the relevant government departments and adhere strictly to the information set out in the Register of Members on 18 September 2026 (Friday). The Company assumes no liability whatsoever in respect of and will not entertain any claims arising from any delay in, or inaccurate determination of, the status of the holders of Hong Kong Shares within the aforesaid timeframe or any disputes over the mechanism of withholding and payment of enterprise income tax. By Order of the Board Xu Yugao Joint Company Secretary Hong Kong, 26 August 2026
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- 14 - As at the date of this announcement, the Board comprises: Executive Director Huang Yongzhang (Vice Chairman) Non-executive Directors Zhang Chuanjiang (Chairman) Wang Dehua Independent Non-executive Directors Qiu Zhi Zhong Lin Boqiang Li Shuk Yin Edwina FORWARD-LOOKING STATEMENTS This announcement includes forward-looking information, including statements regarding the likely future developments in the business of the Company and its subsidiaries, such as expected future events, business prospects or financial results. The words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company as of this date in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company currently believes are appropriate under the circumstances. However, whether actual results and developments will meet the current expectations and predictions of the Company is uncertain. Actual results, performance and financial condition may differ materially from the Company’s expectations, as a result of uncertain factors including but not limited to those associated with macro-political and economic factors, fluctuations in crude oil and natural gas prices, the highly competitive nature of the oil and natural gas industry, climate change and environment policies, the Company’s price forecast, mergers, acquisitions and divestments activities, HSSE and insurance policies and changes in anti-corruption, anti-fraud, anti-money laundering and corporate governance laws and regulations. Consequently, all of the forward-looking statements made in this announcement are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realised or, even if substantially realised, that they will have the expected effect on the Company, its business or operations.