Beijing Energy International (00686) announced that on August 26, 2026, its subsidiary Jingneng Development entered into a trust agreement with Industrial Trust. Under this agreement, Jingneng Development has conditionally agreed to entrust the underlying assets to Industrial Trust, which will conditionally serve as the trustee and management institution for the benefit of the beneficiaries in connection with the issuance of asset-backed commercial paper (ABCP).

The ABCP will be registered with the National Association of Financial Market Institutional Investors and issued in the China interbank bond market in two tranches, comprising senior and subordinated ABCP, with a total face value of RMB 2.6 billion.

The board believes that the ABCP issuance will diversify the Group's fundraising channels and secure low-cost capital, thereby improving its financing structure and enhancing operational activities and investments. The expected issuance rate of the ABCP is no more than 2.2%, significantly lower than the Company's average financing rate of 2.54% as of June 30, 2026, effectively reducing the overall financing costs.

100% of the proceeds from the ABCP issuance will be used to repay existing debts, efficiently optimizing the Group's debt-to-asset ratio. The directors believe that following the sale related to the ABCP issuance, the overall turnover of the Group's assets will accelerate and total income generated will increase.

Additionally, this arrangement to transfer the underlying assets will expedite the recovery of the Group's receivables. As of June 30, 2026, the Group's receivables, notes, and electricity price subsidy receivables amounted to approximately RMB 9.16 billion. After the ABCP issuance, the Company will be able to reduce this balance by approximately RMB 2.60017 billion.

Furthermore, the ABCP is a direct financing product targeting institutional investors. It can enhance the Company's image as a publicly rated and market-tested issuer, demonstrate its creditworthiness through transparent pricing and strong demand, build lasting investor relationships during roadshows, prove the superior quality of underlying receivables, and establish a reliable track record, paving the way for future access to capital markets and further expanding the Company's influence and recognition in the capital markets.