CHINA HK POWER (00931) has signed a strategic cooperation agreement with Xinlei to fully support the group's development in the new energy and artificial intelligence fields.

CHINA HK POWER (00931) announced that the group recently signed a strategic cooperation agreement with Xinlei Compressor Co., Ltd. (Xinlei), a strong A-share listed company. This agreement will fully support the group's development in the field of new energy and artificial intelligence, and provide strong financial support to accelerate the group's business development. The specific key details of the agreement are as follows: (1) The group will include Xinlei in its core supplier system and prioritize the use of Xinlei's equipment and technical solutions in new energy projects. Xinlei will consider HK Power as a strategic customer and provide the highest product discounts and credit terms. (2) In eligible new energy and smart energy projects, the group will prioritize Xinlei as the EPC supplier, and Xinlei will provide HK Power with the best quality service and quality assurance. (3) Xinlei will provide the group with extended payment terms using its financial and product advantages to reduce the group's financial pressure and help reduce financing costs. (4) For high-quality new energy projects recognized by both parties, Xinlei can make equipment investments, while the group is responsible for project construction and operation, with profits distributed according to pre-negotiated proportions. (5) Both parties will collaborate to develop the application of AI technology in the energy field, including embedding AI technology in products, using AI to optimize energy management, enhance equipment operation efficiency, develop smart energy solutions, and enhance competitiveness in the smart energy field, promoting industry intelligence upgrades. The signing of this agreement is based on both parties' mutual business interests and a full understanding of future market opportunities. Through this cooperation, the group will be able to leverage Xinlei's industrial advantages, especially in cutting-edge technology and financial strength in the field of new energy and artificial intelligence, to accelerate its business expansion and technological innovation. The signing of this agreement will enable the group to combine Xinlei's technology and market advantages to enhance its competitive position in the new energy market. Additionally, Xinlei, as a strong A-share listed company, will provide extended payment terms for HK Power using its financial and product advantages, not only alleviating the group's financial pressure but also significantly reducing its financing costs and improving profitability. Furthermore, both parties will jointly develop AI technology applications in the energy field through their respective listing platforms, significantly enhancing their core competitiveness in the smart energy field. In addition to existing collaboration on over 100 self-developed AI applications, both parties will explore collaboration opportunities with other emerging Chinese AI giants to further optimize energy communication information, technology, and management. These integrated collaborations not only align with both parties' long-term strategic goals but also drive the entire industry towards a more efficient and intelligent future, enabling the group to contribute to the country's dual-carbon policy.