Yankuang Energy announced continuing connected transactions between the Group and Yankuang Energy under the Existing Coal Purchase Framework Agreement, which will expire on 31 December 2022 and announced that on 28 October 2022, Huadian Power International Corporation Limited entered into the Proposed Coal Purchase Framework Agreement with Yankuang Energy to renew the relevant continuing connected transactions under the Existing Coal Purchase Framework Agreement with a term of three (3) years from 1 January 2023 to 31 December 2025. The parties agreed to negotiate and make decisions based on the prevailing market prices and conditions and the principle of arm ' s length. Yankuang Energy and its subsidiaries shall supply coal to the Group on terms no less favourable than those provided to independent third parties. In practice, the price of coal purchased under the Proposed Coal
Purchase Framework Agreement will be negotiated by the Company and Yankuang Energy after arm's length negotiation with reference to the price set by major suppliers of coal in the Shandong province and the price trend of coal in the Shandong province. The payment under the Proposed Coal Purchase Framework Agreement will be made separately by the Company to Yankuang Energy,respectively, each time when the Company purchases coal from
Yankuang Energy, respectively. The parties will from time to time determine the quality and the transportation method of coal supplied to the Group with reference to the then prevailing market circumstances, and subject to the parties' discussion and negotiations. The quantity of coal to be supplied to the Group by Yankuang Energy and its subsidiaries shall be determined in accordance with the Company's instructions to Yankuang Energy from time to time.