China Power International Development’s indirect subsidiary, SPIC Yuanda Environmental Protection Engineering Co. (Yuanda Engineering), has signed an Engineering, Procurement and Construction (EPC) Contracting Agreement with Hechuan Power to build a wet flue-gas desulfurisation system for the 2,000 MW Hechuan Project in Chongqing. The contract, dated 30 April 2026, is valued at RMB117.80 million (approximately HKD133.86 million).
The scope of work covers system design, equipment manufacturing and procurement, supervision, transportation, installation, commissioning, trial runs, performance testing, and warranty services. Yuanda Engineering will also rectify defects arising within a two-year warranty for construction works and one- to three-year warranty for equipment.
Cost allocation under the contract stands at RMB81.33 million for equipment procurement, RMB34.67 million for construction and installation, and RMB1.80 million for design and technical services. Payment terms include an interest-free prepayment equal to 20 % of procurement fees and 10 % of construction fees. Retentions amounting to 3 % of design fees and construction fees and 10 % of procurement fees will be released 30 days after the respective warranty or defect-liability periods expire.
Yuanda Engineering secured the mandate through an open tender on national bidding platforms; pricing was benchmarked against comparable market transactions and recent tender results for similar projects. The arrangement aligns with heightened environmental requirements for coal-fired plants in mainland China and supports China Power’s strategic shift toward low-carbon and environmental services.
Hechuan Power is classified as a connected person because it is 45 % owned by SPIC’s wholly owned subsidiary Chongqing Power. With the highest applicable percentage ratio under Hong Kong Listing Rule 14.07 exceeding 0.1 % but below 5 %, the transaction is subject to announcement and reporting obligations only, exempting it from independent shareholders’ approval.
State Power Investment Corporation (SPIC) holds approximately 65.71 % of China Power’s issued share capital. The board of China Power confirmed that the EPC Contracting Agreement is on normal commercial terms, in the ordinary course of business, and in the best interests of the company and its shareholders.
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