China Qinfa Group Limited (China Qinfa) announced that its 75%-owned Indonesian mining unit PT Sumber Daya Energi (SDE) has entered into a coal supply agreement with Zhejiang Energy Asia Pacific Holding Limited (Zhejiang Energy Asia Pacific).
Key terms • Contract volume: 70,000 MT of Indonesian steam coal, subject to a ±10% quantity adjustment. • Delivery window: Shipments start in May 2026 and conclude once the contracted tonnage is delivered and paid for. Each parcel is expected to be about 70,000 MT, also with a ±10% flexibility. • Pricing formula: ((ICI 2 + ICI 3) ÷ 2 ÷ 5,050 kcal × 5,000 kcal + USD4.25/MT) × the RMB/ USD exchange rate on the bill-of-lading date, with quality and calorific value adjustments. • Settlement: Zhejiang Energy Asia Pacific will pay in RMB via telegraphic transfer within five working days after receiving the prescribed shipping documents.
Transaction size and connected-party status • Estimated contract value: not more than RMB47.00 million, calculated at prevailing coal prices. • Aggregated value: Including seven similar contracts signed since September 2025, Zhejiang Energy Asia Pacific has purchased roughly RMB345.00 million of coal from SDE in the past 12 months. • Listing Rules classification: Connected transaction at subsidiary level because Zhejiang Energy Asia Pacific owns 40% of Lead Far Development Limited, the 75% shareholder of SDE. The agreement requires reporting, announcement and annual review but is exempt from circular, independent advice and shareholder approval under Rule 14A.101.
Strategic rationale Management expects the agreement to secure recurring revenue by leveraging sustained demand from the state-owned power-generation group behind Zhejiang Energy. Directors, including independent non-executive directors, consider the terms fair, reasonable and in the interests of China Qinfa and its shareholders.
Corporate background • China Qinfa: Cayman Islands-incorporated investment holding company focused on coal mining, trading and logistics. • SDE: Licence holder of a 185 sq km coal mine in Sungai Durian, South Kalimantan; owned 75% through Lead Far and 25% by wholly owned PT Widyanusa Mandiri. • Zhejiang Energy Asia Pacific: Hong Kong-incorporated trading and investment vehicle, wholly owned by Zhejiang Energy International Limited, an arm of Zhejiang Provincial Energy Group Co., Ltd.