Xinte Energy (01799) has signed a supplemental agreement with its connected party Xinjiang Tebian Group to boost the 2026 cap for product-procurement transactions—covering towers and photovoltaic (PV) mountings—from the original RMB 400.00 million to RMB 900.00 million, a 125% increase.
Key points 1. Transaction background • The existing New Product Procurement Framework Agreement (effective 1 Jan 2024–31 Dec 2026) allowed purchases of up to RMB 400.00 million in 2026. • As of 30 Jun 2026, Xinte had already incurred RMB 381 million of purchases, utilising 95.25% of the cap. • The rise is driven by additional demand for tower and PV-mounting supplies for new wind and solar power projects totalling about 2.5 GW scheduled for construction in 2H 2026.
2. Revised annual cap calculation • 1H 2026 actual spend: RMB 381 million. • Estimated additional procurement for 2H 2026: up to RMB 500 million. • Resulting full-year requirement: around RMB 900 million.
3. Connected-party relationship • Xinjiang Tebian is a 30%-controlled company of director Zhang Xin, making it a connected person under Hong Kong Listing Rules. • The firm supplies transformer components, towers and PV mountings, with annual capacities of c.230,000 tonnes (towers) and c.180,000 tonnes (mountings).
4. Pricing & safeguards • All purchases will continue to be made via competitive tenders that invite at least five qualified suppliers and compare bids on price, quality, delivery, technical standards and track record. • The bid assessment committee will only award contracts if Xinjiang Tebian’s terms are no less favourable than those offered to independent third parties. • Ongoing internal controls include monthly monitoring of transaction values, quarterly audit-committee reviews and annual checks by the external auditor.
5. Approvals and voting • The supplemental agreement and revised cap require independent shareholders’ approval at the second extraordinary general meeting scheduled for 19 Aug 2026 in Urumqi. • Director Zhang Xin and his associates (holding 4.30% of Xinte’s share capital) will abstain from voting.
6. Board and IFA view • The Board (with Zhang Xin abstaining) and the Independent Board Committee, advised by Kingsway Capital, deem the revised cap fair, reasonable, on normal commercial terms and in the interests of shareholders.
If approved, the revised RMB 900 million cap will enable Xinte Energy to meet increased procurement needs linked to its accelerated 2.5 GW wind and PV development pipeline in the second half of 2026.
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