China Qinfa Group Limited (00866) announced that PT Sumber Daya Energi (SDE), a non-wholly owned subsidiary, entered into a Coal Supply Agreement with Zhejiang Energy Asia Pacific Holding Limited. Under the agreement, SDE will sell 150,000 MT of Indonesian steam coal, with a 10% upward or downward adjustment option. The transaction is expected to generate up to approximately RMB90 million, based on the latest coal price.

According to the announcement, the coal price formula is determined by ((ICI 2 + ICI 3) / 2 / 5,050 × 5,000 + USD5) × exchange rate, subject to quality adjustments. The buyer will settle the payment in RMB within five working days after receiving required shipping documents. Delivery is scheduled to begin in November 2025 and will be completed when all contracted coal is delivered and fully paid.

Zhejiang Energy Asia Pacific is a connected person at subsidiary level of China Qinfa Group Limited, given its substantial shareholding in Lead Far, an indirect non-wholly owned subsidiary of the Company. The board of directors confirmed that the agreement terms are on normal commercial terms and are in the best interests of the Company and shareholders as a whole, with the transaction subject to reporting, announcement, and annual review requirements, but exempt from shareholders’ approval. The Coal Supply Agreement aligns with the Group’s business strategy, securing stable revenue through continued demand from a state-owned power plant.