Huaneng Power International, Inc. (“Huaneng International”) has signed framework agreements to provide renewable entrusted loans to its controlled subsidiaries, Huaneng Shandong Power Generation Co., Ltd. (“Shandong Company”) and Huaneng Chaohu Power Generation Co., Ltd. (“Chaohu Power”). According to the announcement dated 12 February 2026, Huaneng International will offer a maximum of RMB11.75 billion to Shandong Company and up to RMB1 billion to Chaohu Power. The loans bear no fixed term, with an initial term starting on the respective dates of advancement, and an interest rate reflecting overall upstream fundraising costs and related taxes.

Shandong Company is 80%-owned by Huaneng International. As of 31 December 2024, Shandong Company reported audited total assets of RMB77.912 billion and total liabilities of RMB50.025 billion. Its net profit for the 2024 financial year was RMB1.681 billion. By 30 September 2025 (unaudited), net profit reached RMB2.062 billion, while the asset-liability ratio stood at 62.14%. Chaohu Power, 60%-owned by Huaneng International, recorded total assets of RMB1.611 billion and total liabilities of RMB1.557 billion as of 31 December 2024, with a net profit of RMB37 million for that year. By 30 September 2025 (unaudited), Chaohu Power’s asset-liability ratio was 81.24%, and net profit amounted to RMB204 million.

The planned renewable entrusted loans aim to support thermal power enterprises and help reduce both ongoing losses and the overall asset-liability ratio at Shandong Company and Chaohu Power. These transactions constitute continuing connected transactions under Chapter 14A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. As the applicable percentage ratios exceed 5%, independent shareholders’ approval is required at a general meeting of Huaneng International. A circular providing more details, including independent financial advice, will be dispatched in due course. Both Huaneng International’s board and its Independent Board Committee consider that the agreements, reached on normal commercial terms, align with the interests of the company and its shareholders as a whole.