On 5 February 2026, China Power International Development Limited (Stock Code: 2380) announced that its non wholly-owned subsidiary, Xinyuan Smart Storage, entered into a procurement contract with Tuoli Company for battery energy storage system (BESS) equipment, components, and related services. The contract, valued at RMB452,050,600 (equivalent to approximately HK$507,922,000), covers engineering design, manufacturing, installation, commissioning, and a five-year quality assurance period for the 250MW/1,000MWh Tacheng Project in Xinjiang.

Under the contract, Xinyuan Smart Storage will receive payments in stages: 10% of the total upon provision of a performance bond, 20% after submitting a production schedule, 40% following equipment delivery and acceptance, 25% after grid connection and issuance of a preliminary acceptance certificate, and the remaining 5% upon final acceptance. This agreement was awarded through an open market tender process, with pricing based on data from similar publicly tendered BESS projects and recent contracts undertaken by Xinyuan Smart Storage.

Because Tuoli Company is indirectly controlled by State Power Investment Corporation (SPIC)—which owns approximately 65.61% of China Power—this procurement contract constitutes a connected transaction under the Listing Rules. Certain percentage ratios exceed 0.1% but are below 5%, making the transaction subject to announcement and reporting requirements while exempt from independent shareholders’ approval.

China Power views this project as part of its strategic focus on green, low-carbon energy development. By expanding its presence in energy storage, the group aims to build an integrated new energy supply chain. The board of directors deems the transaction fair, on normal commercial terms, and in the interests of the company and its shareholders as a whole.