HXTL's Subsidiary Signs Construction and Equipment Contracts with GCL Group Affiliates for Qinghai Solar Thermal Project

HXTL (ASX: 01085) has announced that on June 12, 2026, its indirectly held, non-wholly owned subsidiary, Qinghai Zhongkong, entered into a series of contracts with companies under the GCL Group for the Qinghai project. The total value of these contracts amounts to RMB 4.726 billion, inclusive of tax.

The agreements include a construction project contract with GCL Green Energy, acting as the contractor, for building works to be carried out on the project site. Additionally, an equipment supply contract was signed with Green Source Xinneng, as the supplier, for providing and procuring the necessary equipment for the construction and operation of the Qinghai project. A separate equipment installation project contract was also established with GCL Green Energy, as the contractor, for the installation and commissioning of equipment on-site.

The Qinghai project is a 350-megawatt tower-type molten salt concentrated solar power (CSP) plant. It utilizes a three-tower, one-unit layout based on tower-type molten salt CSP technology, featuring a 3.15 million square meter heliostat field and a supporting 350 MW steam turbine generator set. Construction on the project commenced in December 2025, with grid connection anticipated by December 2027.

This project has been successfully selected as a demonstration (pilot) project for concentrated solar power in Qinghai Province for the year 2024. It is noteworthy that the Qinghai project currently represents the largest tower-type CSP project in terms of installed capacity among all completed, planned, and under-construction projects globally.

The company's board of directors believes the Qinghai project will generate stable, long-term revenue and enhance the group's market reputation and competitiveness within the CSP sector. This project is the first in a series of planned tower-type molten salt CSP projects the group intends to develop, construct, and operate in a rolling manner. It is a significant project under the group's new energy and services business segment.

The transactions contemplated under these contracts are considered essential for the construction of the Qinghai project. The appointment of the GCL Group affiliates was determined through a tender process involving comparisons with independent third parties.