China Sanjiang Fine Chemicals Company Limited (China Sanjiang) has entered into an Energy Management Agreement with Jiaxing Jifeng Cornerstone New Energy Technology Co., Ltd. (Jifeng Cornerstone) on 4 September 2026 to develop and operate a 14.5 MW/29 MWh energy-storage power station at Sanjiang Chemical’s production site.
Key Transaction Details • Scope and Term: Jifeng Cornerstone will invest in, build, own, operate and maintain the facility from now until 31 December 2028. • Financial Structure: Electricity will be charged during off-peak periods and discharged during peak periods. Sanjiang Chemical receives 30% of the Energy Saving Benefit, while Jifeng Cornerstone retains 70%. Subsidy inflows from network entities are shared 20:80 (Sanjiang:Jifeng); government subsidies are shared 50:50. • Annual Caps: Payments by Sanjiang Chemical to Jifeng Cornerstone are capped at RMB 8.00 million (USD 1.10 million) per year for 2026, 2027 and 2028. • Settlement: Metered charging/discharging volumes are verified monthly; Sanjiang settles with Jifeng Cornerstone within five business days of invoice.
Connected-Transaction Background • Jifeng Cornerstone became a connected person on 3 April 2026 after Mr. Guan Jianzhong—China Sanjiang’s controlling shareholder—acquired 62.5% of its parent, Zhejiang Jifeng. • Historical spending with Jifeng Cornerstone totalled RMB 0.60 million in 2025, RMB 2.00 million in 1Q 2026 (when it was still an independent party) and RMB 2.30 million from April to July 2026 after becoming connected. • The new agreement formalises future transactions and protects compliance with Hong Kong Listing Rule 14A; applicable percentage ratios remain above 0.1% but below 5%, triggering announcement and annual review requirements without necessitating shareholder approval.
Strategic Rationale The storage project allows China Sanjiang to arbitrage peak-and-off-peak power tariffs, lowering electricity costs and enhancing energy resilience without upfront capital outlay. Jifeng Cornerstone assumes investment and operational responsibilities, while Sanjiang secures cost savings and potential subsidy income.
Governance and Controls China Sanjiang has instituted monthly meter verification, finance-department checks, ongoing cap monitoring, and annual reviews by independent non-executive directors and external auditors to ensure transaction terms remain fair, reasonable and within approved limits.
China Sanjiang manufactures ethylene oxide, ethylene glycol, polypropylene, methyl tert-butyl ether and surfactants in the PRC. Jifeng Cornerstone, wholly owned by Zhejiang Jifeng, specialises in energy storage solutions.