CHINA POWER subsidiary Yuanda Engineering secures RMB 79.25 million ESP dedusting contract with SPIC-linked Shandong Ludian

Bulletin Express05-11

Hong Kong-listed CHINA POWER (China Power International Development Limited) announced that its 97.80%-owned indirect subsidiary, SPIC Yuanda Environmental Protection Engineering Co., Ltd. (“Yuanda Engineering”), has signed a Sale and Purchase Contract with Shandong Ludian International Technology and Trade Co., Ltd. (“Shandong Ludian”) on 11 May 2026 for the supply of electrostatic precipitator (ESP) dedusting facilities to the Baicheng ultra-supercritical coal-fired power project in Jilin Province.

Key transaction terms • Contract value: RMB 79.25 million (approximately HK$91.09 million). • Scope: Design, procurement, fabrication, installation, transport, on-site commissioning, performance testing, delivery, and a one-year warranty for a full set of ESP-based dedusting equipment and components. • Payment schedule: 10% prepayment within one month of signing against a bank guarantee; 20% on ordering main materials; 20% at 60% fabrication completion; 30% upon final shipment delivery; 10% after 168-hour full-load trial run; remaining 10% after warranty or final acceptance. • Procurement method: Yuanda Engineering won the mandate via competitive public tender on national bidding platforms, with pricing referenced to recent market benchmarks for comparable projects.

Regulatory classification State Power Investment Corporation Limited (SPIC) owns 65.71% of CHINA POWER, making SPIC and its affiliates connected persons under Hong Kong Listing Rules. Shandong Ludian is an indirect non-wholly-owned subsidiary of SPIC; therefore, the transaction is classified as a connected transaction. Applicable percentage ratios exceed 0.1% but are below 5%, triggering announcement and reporting obligations without requiring independent shareholders’ approval under Chapter 14A.

Strategic rationale The Baicheng Project, with total installed capacity of 1,320 MW, requires advanced emission-control solutions to meet tightening environmental standards for coal-fired power plants in China. Management expects the contract to strengthen Yuanda Engineering’s position in environmental protection services and support the Group’s broader transition toward green and low-carbon energy solutions. The board, including independent non-executive directors, considers the terms fair, reasonable and in the interests of shareholders.

No directors have a material interest in the transaction, and all have approved the contract.

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