Beijing Jingneng Clean Energy (00579) Announces Continuing Connected Transactions in Power Sales Agreements

Beijing Jingneng Clean Energy Co., Ltd. (00579) issued an announcement disclosing that certain subsidiaries entered into power sales agreements from November and December 2024 and 2025 with associates of Beijing Energy Holding Co., Ltd. (BEH). These transactions involve selling electricity through bilateral negotiations on power trading platforms, with pricing determined based on the spot market reference price.

The announcement states BEH is the controlling shareholder of Beijing Jingneng Clean Energy, holding approximately 68.68% of the issued share capital. As a result, these power sales agreements qualify as continuing connected transactions. After aggregation under Chapter 14A of the Listing Rules, the highest applicable percentage ratio exceeds 0.1% but is below 5%, triggering reporting, annual review, and announcement requirements but exempting them from independent shareholders’ approval.

According to the document, the total contract price for the aggregated agreements amounts to RMB 349.85 million, with an actual settlement figure of RMB 348.05 million. The power sales primarily involve intra-provincial and inter-provincial green electricity transactions, along with a series of contract assignments. The agreements cover wind power, photovoltaic power, and other clean power generation activities.

The announcement emphasizes that entering into these power sales agreements aligns with the group’s usual business operations and helps utilize available wind and solar resources. The company notes that directors with ties to BEH abstained from expressing views on the transactions. Other directors concluded the terms are fair, reasonable, and in the interests of all shareholders.

Regarding compliance, the announcement explains there was a delay in publishing the relevant disclosure due to oversight at the subsidiary level. Remedial steps include reiterating internal control policies, enhanced communication between key departments, and closer collaboration with legal advisers to ensure that similar oversights do not recur in the future.