China Power International Development Limited (China Power) signed an Entrusted Management Supplemental Agreement on 15 October 2026 with CPI Holding and Chongqing Electric, both subsidiaries of State Power Investment Corporation (SPIC). The amendment broadens the existing 2026-2028 management framework in three key areas:
• New contracting party: Chongqing Electric joins as Entrusting Party II, allowing its power assets—covering hydro, thermal, wind and solar facilities in Chongqing—to be managed by China Power’s subsidiary, SPIC Hydropower.
• Wider service scope and flexible pricing: The mandate now covers day-to-day operation and maintenance of plants. Management fees may comprise any combination of cost reimbursement, risk premium and performance bonus, to be agreed case-by-case while remaining benchmarked against market rates for comparable third-party services.
• Higher annual caps: Fee ceilings rise sharply to RMB137.25 million for 2026, RMB488.53 million for 2027 and RMB504.27 million for 2028 (approximately HKD159.59 million, HKD568.06 million and HKD586.36 million). The uplift reflects expected labour and operating costs, additional installed capacity coming onstream and market pricing for similar mandates.
The revised arrangement remains in force until 31 December 2028 and constitutes a continuing connected transaction under Hong Kong Listing Rules. With SPIC holding 65.81 % of China Power, the applicable percentage ratios for the largest annual cap stay below 5 %, triggering announcement and annual review requirements but exempting the deal from independent shareholders’ approval.
China Power’s board considers the supplemental agreement to be on normal commercial terms and beneficial for enhancing regional synergies, optimising resource utilisation and generating incremental management income, while maintaining internal controls consistent with those disclosed in December 2025.
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