China Shenhua Energy Company Limited (China Shenhua, 01088) has approved a comprehensive renewal of four key connected-party agreements with controlling shareholder China Energy Investment Corporation (China Energy) and its finance and factoring subsidiaries. Subject to shareholder approval at the 26 June 2026 AGM, all agreements will run from 1 January 2027 to 31 December 2029.

Key terms and financial ceilings are as follows:

1. New Mutual Coal Supply Agreement • China Shenhua to supply coal to China Energy: annual caps of RMB 126.50 billion (2027), RMB 131.00 billion (2028) and RMB 133.00 billion (2029), reflecting a 15 % buffer over projected demand. • China Energy to supply coal to China Shenhua: capped at RMB 27.00 billion each year. • Historical utilisation: 2025 supply by China Shenhua totalled RMB 75.88 billion against a RMB 110.00 billion cap; receipts from China Energy reached RMB 15.29 billion versus a RMB 27.00 billion cap.

2. New Mutual Supplies & Services Agreement • Products and services from China Shenhua to China Energy: caps of RMB 22.50 billion, RMB 24.50 billion and RMB 27.00 billion for 2027-29, below the current RMB 35.00 billion cap. • Products and services from China Energy to China Shenhua: caps of RMB 18.00 billion, RMB 20.00 billion and RMB 23.00 billion for 2027-29, up modestly from the existing RMB 17.00 billion level.

3. New Financial Services Agreement with China Energy Finance Company • Maximum daily deposit balance (including interest) for group companies set at RMB 70.00 billion per annum (down from RMB 75.00 billion). • Service-fee cap for financial services fixed at RMB 100.00 million annually (previous cap: RMB 300.00 million; 2025 usage: RMB 5 million). • Comprehensive credit facilities available up to RMB 80.00 billion per year (regulatory-exempt).

4. New Factoring Services Agreement with Guoneng Factoring • Maximum daily balance of factoring services (including interest and fees) capped at RMB 15.00 billion annually, up 50 % from the 2026 cap of RMB 10.00 billion. • Other factoring-related services expected at around RMB 20 million annually; all percentage ratios are below 0.1 %, exempting the transactions from Hong Kong Listing Rules disclosure and approval.

Regulatory status • China Energy (70.02 % shareholder), Finance Company (60 % China Energy-owned) and Guoneng Factoring (wholly owned by China Energy) are connected persons under Chapter 14A of the Hong Kong Listing Rules. • The coal supply, mutual supplies/services and financial services agreements require reporting, announcement and independent shareholders’ approval; the factoring services arrangement requires reporting only. • Somerley Capital Limited has been appointed as independent financial adviser; an independent board committee comprising all independent non-executive directors will opine on the fairness of the terms.

Governance Directors employed by China Energy abstained from voting on the renewals. The board considers the terms and caps fair, reasonable and in the ordinary course of business.

Next steps A circular with full details is scheduled for dispatch by 4 June 2026 ahead of the AGM. If approved, the renewed agreements will underpin China Shenhua’s coal supply chain integration, service cooperation and internal financial management for the 2027-29 period.