On 29 October 2024, Huaneng Power International, Inc. entered into the Joint Venture Agreement with Huaneng Hydropower, pursuant to which, the Company and Huaneng Hydropower will jointly fund the establishment of Yuwang Company. The Company will contribute RMB 1,509.6 million and Huaneng Hydropower will contribute RMB 1,450.4 million. After the completion of the Transaction, the Company will hold 51% of the equity interests of Yuwang Company, while Huaneng Hydropower will hold 49% of the equity interests of Yuwang Company.

Registered Capital and Equity Ratio: The registered capital of Yuwang Company shall be RMB 2,960 million, of which, the Company will contribute RMB 1,509.6 million in cash, accounting for 51% of the registered capital, Huaneng Hydropower will contribute RMB 1,450.4 million, accounting for 49% of the registered capital. Principles of Capital Contribution: The Company and Huaneng Hydropower shall complete the capital contribution within the capital contribution period in accordance with the requirements of the local government, the progress of the construction of the project and the fulfillment of the investment decision-making procedures of the two parties, at the same time and in proportion to their respective shareholdings. In the event of subsequent capital increase in accordance with the development of the project, both shareholders shall increase the capital in proportion to their respective shareholdings.

Corporate Structure: Yuwang Company will form a board of directors consisting of five members, including two recommended by the Company, two recommended by Huaneng Hydropower, and one employee representative director. The chairman of the board of directors shall be a director recommended by the Company. Effectiveness: The Joint Venture Agreement shall become effective upon being duly signed by both parties.

PURPOSE OF THE TRANSACTION AND THE EFFECT ON THE COMPANY: The Transaction is designed to fulfill the national energy supply requirements and will help the Company secure resources for new energy projects and facilitate the joint operation of the Company's thermal power and new energy sectors, which will be conducive to the sustainable development of the Company. Following completion of the Transaction, Yuwang Company will become a subsidiary of the Company and its financial results will be consolidated into the financial statements of the Company. The Transaction will not have a significant impact on the Company's financial position, nor will it jeopardise the interest of the Company and its shareholders.