21 August 2026—Yuanda Engineering Co., Ltd., an indirect non-wholly-owned subsidiary of CHINA POWER, has entered into an engineering, procurement and construction (EPC) contracting agreement with Shandong Electric Power Engineering Consulting Institute Corp., Ltd. to build a wet flue-gas desulfurization system for the 1,320 MW Baicheng ultra-supercritical coal-fired power project in Jilin Province.

The contract is valued at RMB125.60 million (approximately HK$146.05 million) and covers survey design, equipment procurement, construction, installation, commissioning, staff training and technical support. A one-year defect-liability period will follow successful completion of a 168-hour full-load trial run.

Fee composition (inclusive of all taxes): • Construction and installation: RMB75.00 million • Equipment procurement: RMB42.72 million • Health, safety and environmental measures: RMB1.88 million • Survey design and commissioning (other fees): RMB4.00 million • Contingency (estimated fees): RMB2.00 million

Payment terms include an interest-free advance that covers 10 % of construction, installation, equipment and other fees plus 50 % of health-and-safety costs. Retentions for quality assurance comprise 10 % of equipment procurement fees payable within 45 days of final acceptance and 3 % of construction and 5 % of other fees payable one month after the defect-liability period.

The mandate was awarded through an open-market tender posted on national procurement platforms. Pricing was benchmarked against recent bids for comparable desulfurization projects and against similar contracts undertaken by Yuanda Engineering for independent third parties.

Because Shandong Institute is an indirect subsidiary of State Power Investment Corporation (SPIC)—which holds 65.81 % of CHINA POWER—the agreement is classified as a connected transaction under Hong Kong Listing Rules. The highest applicable percentage ratio exceeds 0.1 % but is below 5 %, triggering announcement and reporting obligations while exempting the deal from independent shareholders’ approval.

Management views the project as supportive of CHINA POWER’s strategy to expand environmental-protection services amid tightening emission standards for coal-fired generation in China.