China Qinfa (00866) announced that SDE, its non-wholly-owned subsidiary PT Sumber Daya Energi, has entered into a coal supply agreement with Zhejiang Energy Asia Pacific. The agreement concerns the purchase of coal by Zhejiang Energy Asia Pacific from SDE. SDE has agreed to sell, and Zhejiang Energy Asia Pacific has agreed to purchase, 70,000 metric tons of Indonesian fuel coal (base quantity). According to the supply agreement, the contracting parties may mutually agree to adjust the base quantity upward or downward by 10%. Based on the latest coal price, the estimated transaction value for the coal purchased under the agreement is expected not to exceed RMB 47 million. It was initially anticipated that Zhejiang Energy would sign a 20-year coal supply agreement with SDE. However, the parties require more time to assess their annual capacity before committing to a long-term arrangement. Consequently, the parties have decided to enter into a shorter-term coal supply agreement at this stage. Through this agreement, the group will secure a stable revenue source due to the ongoing demand from the state-owned power plants under the controlling company of Zhejiang Energy.