SDHS NEW ENERGY (01250) has entered into an EPC contract with China Energy Engineering Group Anhui Electric Power Construction Co., Ltd. The total contract price is 1.234 billion yuan.

SDHS NEW ENERGY (01250) announced that the board of directors of SDHS NEW ENERGY and the board of directors of SDHG each declared that on August 10, 2026 (after trading hours), Heze Mountain High Clean Energy (a direct wholly-owned subsidiary of SDHS NEW ENERGY and an indirect non-wholly-owned subsidiary of SDHG, as the employer) has entered into an EPC contract with CH ENERGY ENG Group Anhui Electric Power Construction Second Engineering Co., Ltd. (China Energy Construction Anhui Electric Power Construction, as the contractor). According to the EPC contract, Heze Mountain High Clean Energy agrees to engage China Energy Construction Anhui Electric Power Construction to provide EPC services for the project, with a total contract price of RMB 1.234 billion (including all taxes) (which may be adjusted in response to changes in national tax policies). The project is located in the southwest of Mudan District, Heze City, Shandong Province, as a 212.5 MW centralized wind power project. According to the terms of the EPC contract, the contractor will complete all construction of the project (which includes): wind farm, booster station, collection lines and delivery lines engineering, surveying and design, procurement, transportation and storage of all equipment and materials, engineering construction preparation and execution, equipment installation and commissioning, and completion acceptance of the project. SDHS NEW ENERGY Group is actively and deeply integrating into the national strategic planning layout and the diversified development ecosystem established by Shandong Hi-speed Group. SDHG Group remains optimistic about the positive development of the Chinese economy, actively integrates into the new development pattern of the clean energy sector, and promotes project initiatives supported by the Chinese government in the "14th Five-Year Plan" aimed at achieving peak carbon dioxide emissions by 2030 and carbon neutrality by 2060. By continuously expanding the clean energy market across the country, the investment, construction, and operation of the project will further enhance the strategic layout, business scope, and footprint of SDHS NEW ENERGY Group and SDHG Group in the Shandong market. This move will not only contribute to the ongoing development of a diversified business portfolio for SDHS NEW ENERGY Group and SDHG Group in the new energy sector but also expand the revenue base for the future, strengthen the long-term competitiveness of SDHS NEW ENERGY Group and SDHG Group, and improve profitability. In light of the above, the boards of directors of SDHS NEW ENERGY and SDHG (including their respective independent non-executive directors) each believe that the transaction proposed under the EPC contract is conducted after fair negotiation as part of the ordinary course of business of SDHS NEW ENERGY on normal or better commercial terms, and that the relevant terms are fair and reasonable, and in the overall interests of SDHS NEW ENERGY and SDHG as well as their respective shareholders.