KASEN International (00496) announced that on December 12, 2025, its wholly-owned subsidiary, KASEN International Power Development (the Buyer), entered into a contract with supplier Anhui Fuhuang Steel Structure. Under the agreement, the Buyer will purchase, and the supplier will produce and sell steel structures for a total consideration of RMB 43.5366 million.

Considering Mongolia's "Vision 2050," which is expected to provide strong policy support for domestic energy investments in the coming years, as well as the country's robust and continuously growing electricity demand, the company views Mongolia's power generation sector as highly attractive with significant growth potential.

To capitalize on this opportunity, KASEN plans to construct and operate a 660-megawatt coal-fired power plant (the Power Plant Project) in Baganhangai, Mongolia. The group has already secured necessary approvals from the Mongolian government and signed a power purchase agreement (PPA) with a state-owned enterprise in July 2024. The PPA has been approved by Mongolia's Minister of Energy.

Under the PPA, the group is entitled to supply and sell electricity generated by the Power Plant Project to the state-owned enterprise for a 25-year term starting from the commercial operation date. Steel structures serve as essential components for the Power Plant Project.

Through the development and operation of the Power Plant Project, KASEN aims to diversify its revenue streams and enhance long-term financial performance.