China Qinfa (00866): SDE signs coal supply agreement with Zhejiang Energy Asia-Pacific

CHINA QINFA (00866) announces that SDE (a non-wholly owned subsidiary of the company) has entered into a coal supply agreement with Zhejiang Energy Asia Pacific, regarding Zhejiang Energy Asia Pacific purchasing coal from SDE. SDE has agreed to sell, and Zhejiang Energy Asia Pacific has agreed to purchase 75,000 metric tons of Indonesian thermal coal (on a basis quantity). According to the coal supply agreement, the parties can mutually agree to adjust the basis quantity by up to 10%. Originally, it was expected that Zhejiang Energy would enter into a 20-year coal supply agreement with SDE. However, the parties require more time to evaluate their annual production capacity before committing to a long-term agreement. Therefore, at this stage, the parties have decided to enter into a shorter-term coal supply agreement. By entering into this agreement, the group will have a stable source of income due to the continuous demand from Zhejiang Energy's state-owned power plants.