China Qinfa Group Limited announced that its 75%-owned Indonesian subsidiary PT Sumber Daya Energi (SDE) has entered into a coal supply agreement with Zhejiang Energy Asia Pacific Holding Limited, a connected person at the subsidiary level.

The contract covers the sale of 70,000 metric tonnes of Indonesian steam coal, with a flexibility of ±10%. Deliveries are scheduled to begin in April 2026 and will continue until the full contracted volume is shipped and paid.

Pricing is linked to the Indonesian Coal Index (ICI 3) using the formula (ICI 3/4,600 × 5,000 + USD 3 per tonne) and settled in renminbi at the Bank of China’s prevailing exchange rate on the bill-of-lading date. Payment is due within five working days of receipt of shipping documents.

Based on prevailing market prices, the transaction value is estimated at no more than RMB45.00 million. Including seven prior supply contracts signed in the past 12 months, aggregate coal sales from SDE to Zhejiang Energy Asia Pacific amount to approximately RMB412.00 million.

The board, including independent non-executive directors, considers the terms fair and reasonable and in the interests of the company and its shareholders. Under Hong Kong Listing Rule 14A.101, the deal is classified as a connected transaction subject to reporting, announcement and annual review requirements but exempt from circular, independent financial advice and shareholder approval.

No directors have a material interest in the transaction, and all directors approved the agreement. The arrangement is expected to provide China Qinfa with a stable revenue stream through continuous demand from the state-owned power operations of Zhejiang Energy, the parent of Zhejiang Energy Asia Pacific.