China Power International Development Limited (China Power) has executed a continuing connected-transaction framework agreement with its controlling shareholder State Power Investment Corporation Limited (SPIC) to provide environmental protection engineering and related products across SPIC Group.

The agreement, effective from 16 September 2026 to 31 December 2028, sets the following transaction ceilings (inclusive of taxes): RMB700.00 million for the remainder of 2026 and RMB1.45 billion for each of 2027 and 2028. These limits compare with historical dealings of RMB837.49 million in 2024, RMB1.42 billion in 2025 and RMB796.00 million for the six months ended 30 June 2026.

Services covered include EPC work for coal-fired plant desulphurisation, denitrification and dust removal systems; water and wastewater treatment; carbon capture projects; ecological restoration; energy contract management; and the supply, regeneration and recycling of denitrification catalysts. Pricing must follow mandatory public tenders where applicable or be determined through arm’s-length negotiations benchmarked against at least two independent quotations or market data, ensuring terms are no less favourable than those offered to third parties.

China Power has instituted layered internal controls—departmental monitoring, quarterly compliance reviews, internal audit oversight and annual external audit checks—to confirm adherence to pricing principles and annual caps. As SPIC holds approximately 65.81% of China Power’s issued share capital, the transactions constitute continuing connected transactions under Hong Kong Listing Rule 14A. Applicable percentage ratios are above 0.1% but below 5%; therefore, only reporting, announcement and annual review requirements apply, with no need for independent shareholders’ approval.

Management views the framework as a means to leverage subsidiary SPIC Hydropower’s environmental-protection expertise, streamline recurrent dealings within the SPIC Group and secure continued access to project opportunities in the parent’s power portfolio.