China Power (02380) has announced the signing of a property rights transaction contract with CATL on August 18, 2026, following the expiration of a public listing period at the Shanghai Property Exchange. The agreement covers the sale of a 24.8726% equity interest in Qiyuan Core Power, an associate company of China Power, with the consideration set at approximately RMB 2.256 billion (around HKD 2.972 billion).

Upon completion of the transaction, China Power will no longer hold any equity in Qiyuan Core Power. Qiyuan Core Power, established in China in October 2020, focuses on the construction and operation of battery charging and swapping stations for heavy-duty electric vehicles, the sale and leasing of vehicle batteries and related equipment, and the provision of digital platform services that support the battery swap ecosystem in China.

The heavy-duty electric vehicle battery charging and swapping sector has become increasingly competitive as more market players, including battery manufacturers and other participants along the industrial value chain, continue to enter and expand their operations. Maintaining a competitive edge, therefore, requires sustained investment in battery swap, charging, and infrastructure technology capabilities.

In light of these dynamics, and after considering the group's overall business strategy and capital allocation priorities, the divestment presents China Power with a suitable opportunity to monetize its investment in Qiyuan Core Power. The transaction is also expected to optimize the group's investment portfolio, strengthen its capital structure, and facilitate the reallocation of financial resources toward its core power generation operations, including hydro, wind, solar, and clean thermal power, thereby supporting the group's strategic objective of becoming a leading green and low-carbon energy supplier.