Hengxin Technology Ltd. (HXTL) has agreed to invest RMB4.73 billion (inclusive of tax) in three contracts with GCL Group subsidiaries to advance the 350 MW Delingha tower-type molten-salt concentrated solar power (CSP) project in Qinghai, China.
Key contract details • Construction: Qinghai Zhongkong—an indirect non-wholly owned subsidiary of HXTL—appointed GCL Green Energy to deliver site formation, heliostat field foundations and temporary works for RMB0.22 billion. • Equipment supply: Lvyuan Xinneng will provide heliostat, thermal-storage, steam-generation, electrical, control and auxiliary systems for RMB4.19 billion. • Installation & commissioning: GCL Green Energy will install and commission all major systems for RMB0.31 billion.
Payment structure • Construction and installation contracts feature a 25 % prepayment, staged progress payments, 2.5 % safety-production retentions and a 5 % balance payable after a 12-month warranty period. • The supply contract calls for 30 % prepayment, 30 % material payment, 20 % on delivery, 15 % after preliminary acceptance and 5 % post-final acceptance. • Funding will come from internal resources and external financing, including potential policy-oriented instruments.
Regulatory status Aggregated under Hong Kong Listing Rule 14.22, the transactions exceed the 100 % size test and constitute a Very Substantial Acquisition. Effectiveness of all agreements is contingent upon shareholder approval at an extraordinary general meeting (EGM). A circular is due on or before 7 July 2026.
Project snapshot • Configuration: Three towers, one turbine; 3.15 million m² heliostat field and a 350 MW steam-turbine generator. • Schedule: Construction commenced December 2025; grid connection targeted for December 2027. • Recognition: Identified as a 2024 provincial solar-thermal demonstration project and currently the world’s largest tower-type CSP facility under construction. HXTL expects the project to deliver stable, long-term revenue and strengthen its position in the solar-thermal segment, a core component of its New Energy & Services Business.
Additional business update The company continues to operate three segments—Integrated Circuits & Digital Technology, New Energy & Services and Cabled & Wireless Communications. Despite FY 2025 revenue and pre-tax profit in the communications arm declining 15.3 % and 64.8 %, respectively, management intends to maintain this segment through FY 2026 while focusing on green-energy expansion and digital-power integration.
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