On 5 September 2022, CP Jiaxian (a subsidiary of the China Power International Development Limited) entered into an EPC Contracting Agreement with SNI Chongqing, pursuant to which SNI Chongqing will provide design, procurement, construction and installation, and technical support services in relation to Jiaxian Photovoltaic Project. The maximum consideration payable under the EPC Contracting Agreement is RMB 178,190,000 (equivalent to approximately HKD 202,489,000). SNI Chongqing is an indirect subsidiary of SPIC.

SPIC is the ultimate controlling shareholder of the Company which is interested in approximately 54.35% of the issued share capital of the Company. As such, SNI Chongqing is a connected person of the Company as defined in the Listing Rules. Accordingly, the EPC Contracting Agreement constitutes a connected transaction of the Company under the Listing Rules.

As certain of the applicable percentage ratios (as defined under Rule 14.07 of the Listing Rules) in respect of the maximum consideration payable under the EPC Contracting Agreement exceed 0.1% but all fall below 5%, the transaction contemplated under the EPC Contracting Agreement is therefore subject to the announcement and reporting requirements but is exempt from the independent shareholders' approval requirement under Chapter 14A of the Listing Rules. The Board announces that CP Jiaxian (a subsidiary of the Company) entered into an EPC Contracting Agreement with SNI Chongqing on 5 September 2022 in relation to the development of Jiaxian Photovoltaic Project, a 60MW household-use photovoltaic power project in Jia County, Pingdingshan City, Henan Province of the PRC. The Contractor has agreed to act as the main contractor and provide design, procurement, construction and installation, and technical support services for the Project.

Such services include surveying, designing (including preliminary design, construction drawing design, completion drawing production), equipment and material procurement, construction installation and engineering implementation, project management, supervision of facilities production, commissioning, completion certification (including conducting trial runs, error elimination, assurance acceptance assessment of the whole system's performance), training, performance quality assurance and follow-up services covering the quality warranty period of the entire project.