Announcement on Related Party Transaction of Shandong XinNeng Taishan Power Generation Co., Ltd. Regarding its Holding Subsidiary Qufu Cable Applying for Factoring Financing from Hua Neng Yun Cheng Factoring Company
The company and the board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed herein, and that there are no false records, misleading statements, or material omissions.
I. Overview of Related Party Transaction
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To meet funding needs, Shandong XinNeng Taishan Power Generation Co., Ltd. (hereinafter referred to as the "Company")'s holding subsidiary, Shandong XinNeng Taishan Qufu Cable Co., Ltd. (hereinafter referred to as "Qufu Cable"), intends to apply for recourse factoring financing from Hua Neng Yun Cheng Commercial Factoring (Tianjin) Co., Ltd. (hereinafter referred to as "Hua Neng Yun Cheng Factoring Company") for accounts receivable with a book value not exceeding RMB 106 million, with a financing amount of RMB 90 million. Qufu Cable will arrange financing based on its actual capital needs, with a financing ratio of no less than 85% and financing costs not exceeding 2.75%. The validity period is 1 year from the date of approval by the board of directors, and the term of the factoring financing business shall be subject to the factoring contract.
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Hua Neng Yun Cheng Factoring Company is a wholly-owned subsidiary of Hua Neng Yun Cheng Digital Industry-Finance Technology (Xiong'an) Co., Ltd. (hereinafter referred to as "Hua Neng Yun Cheng Digital Technology"). The actual controller is China Huaneng Group Co., Ltd. In accordance with the "Listing Rules of the Shenzhen Stock Exchange", Hua Neng Yun Cheng Factoring Company and the Company are related parties under the control of the same actual controller, and this transaction constitutes a related party transaction. Related directors Mr. Zhao Guangrun and Mr. Liu Xiao will abstain from voting.
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The Company held its First Extraordinary Board Meeting in 2026 on June 22, 2026, and deliberated and approved this related party transaction with a voting result of 8 votes in favor, 0 votes against, and 0 abstentions. The independent directors' special committee issued a favorable review opinion on this proposal.
According to the "Listing Rules of the Shenzhen Stock Exchange", the "Articles of Association", and other relevant regulations, this related party transaction does not need to be submitted to the shareholders' meeting for deliberation.