SDHS New Energy (Shandong Hi-Speed New Energy Group Ltd., 01250) has entered into a major engineering, procurement and construction (EPC) agreement worth RMB 1.23 billion (tax-inclusive) with China Energy Engineering Group Anhui No. 2 Electric Power Construction Engineering Co., Ltd. (CEEC Anhui).

The contract, signed on 10 August 2026, covers a 212.5 MW centralised wind power project in Mudan District, Heze City, Shandong Province. CEEC Anhui, selected as preferred bidder from 12 candidates, will deliver survey and design, equipment procurement, construction, installation, commissioning and final acceptance. The construction period is capped at 518 days, commencing on a date to be confirmed by the project owner, Heze Shandong Hi-Speed Clean Energy Co., Ltd., a wholly owned subsidiary of SDHS New Energy.

Contract value breakdown • Construction & installation: RMB 300.76 million • Equipment procurement: RMB 526.99 million • Survey & design: RMB 4.46 million • Safety measures: RMB 14.82 million • Other fees: RMB 71.49 million • Provisional site works & coordination: RMB 306.75 million • Other provisional sums: RMB 8.50 million

The fixed pricing implies RMB 5.806 per watt, settled against the approved 212.5 MW capacity; adjustments will reflect any capacity variance. Payments comprise a 10%–20% advance, staged progress payments tied to milestones—including equipment delivery, grid connection and final acceptance—and quality-guarantee mechanisms requiring bank guarantees equal to 10% of major equipment value and 3% of other works.

Financing & financial impact SDHS New Energy plans to fund the consideration through internal resources and bank borrowings. Post-completion, the project will be owned and operated by the group, expanding its wind-power footprint in Shandong. The company expects an increase in total assets and liabilities once construction is completed, with no immediate material effect on earnings.

Strategic rationale Management views the project as supportive of China’s “dual-carbon” goals under the 14th Five-Year Plan, enhancing the group’s clean-energy portfolio and strengthening its market position in Shandong’s renewables sector.

Regulatory status The transaction constitutes a major transaction (25% < size test < 100%) under Hong Kong Listing Rules. Majority shareholder Shandong Hi-Speed Holdings Group (SDHG) has given written approval, obviating the need for a shareholder meeting. Completion remains conditional on both SDHS New Energy and SDHG fulfilling Listing Rule requirements, including circular issuance—dated 24 August 2026—and Stock Exchange filings.

SDHS New Energy’s board considers the terms fair and in the interests of shareholders and notes the project aligns with its strategic focus on scaling wind power capacity while maintaining financial prudence.