China Power International Development Limited (China Power, 02380) announced that its 55.32%-owned subsidiary Xinyuan Smart Storage has signed four battery cell procurement contracts with Guoning New Storage (Fujian) Technology on 14 August 2026.

The new contracts, together worth RMB145.17 million, bring the aggregate consideration with Guoning Technology over the past 12 months—including two earlier contracts in June— to RMB174.63 million (approximately HK$200.72 million). The transactions fall within 0.1%–5% of the applicable percentage ratios under Hong Kong Listing Rule 14.07, triggering announcement and reporting obligations but exempting them from independent shareholders’ approval.

Guoning Technology, 60% owned by China Power’s parent State Power Investment Corporation (SPIC) and 40% by battery giant CATL, is deemed a connected person. The purchases address supply-chain requirements under recently awarded battery energy storage system (BESS) tenders stipulating Guoning Technology as the nominated supplier.

Contract terms cover delivery of lithium-ion battery cells, cell caps, testing and ancillary services, backed by a five-year warranty. Payment is staged at 30% deposit, 30% on delivery, 30% upon commissioning or 90 days after arrival, and the remaining 10% one year post-delivery against a bank guarantee.

Pricing references include: 1. Shanghai Metals Market quotations for 99.5% battery-grade lithium carbonate; 2. Public data from China Energy Storage Alliance and TrendForce; 3. Comparable third-party transactions previously executed by Xinyuan Smart Storage.

China Power said the arrangements secure a stable, market-priced supply of a critical BESS component, supporting its strategy in the fast-growing energy-storage segment. No directors reported material interests in the deals, and the board considers the terms fair and in the normal course of business.