CHINA POWER (02380) has announced that on August 14, 2026, its non-wholly owned subsidiary, Xinyuan Zhichu, entered into four new battery cell procurement contracts with Guoning Technology.

Under these agreements, Xinyuan Zhichu will purchase energy storage cells for BESS projects, while Guoning Technology will supply them. These contracts ensure Xinyuan Zhichu secures a stable and reliable source of high-quality battery cells.

Guoning Technology is a battery cell manufacturer with mature technical expertise and is backed by China's leading battery producer, CATL, which holds a 40% stake in the company. Since battery cells are the core component of BESS systems, maintaining a stable and secure supply chain is critical to ensuring the quality, timely delivery, and overall performance of Xinyuan Zhichu's BESS products and related services.

The final purchase price for each contract depends on the prevailing market prices of battery cell raw materials, ensuring the cells are procured at competitive and market-driven terms. The board believes the consideration and related terms of these contracts are no less favorable than those offered by independent third parties to the group.