HXTL (01085.HK): RMB696.8m EPC Contract for Shandong Energy Storage Project, a Very Substantial Acquisition

NewTimeSpace News: On 24 September 2026 (after trading hours), Hengxin Technology Ltd. (stock code: 01085) announced that Zibo Long'en , its indirect non-wholly-owned subsidiary, entered into an EPC contract with the contractor Shandong Enguang Energy Technology Co., Ltd.for the Shandong project at a total contract price of RMB696,800,000 (tax inclusive). The Shandong project is the Yiyuan Lucun Long'en 200MW/800MWh electrochemical energy storage project located in Yiyuan County, Zibo City, Shandong Province, with a 220kV step-up substation to be built as supporting infrastructure.

As the highest applicable percentage ratio exceeds 100%, the transaction constitutes a very substantial acquisition subject to the notification, announcement, circular and shareholder approval requirements under Chapter 14 of the Listing Rules. The Company will convene an extraordinary general meeting to approve the EPC contract, with the circular expected to be despatched on or before 16 October 2026. The contract price was determined through a tender process launched in April 2026, in which seven valid tenders were received and the contractor was selected under a comprehensive evaluation weighted 10% commercial, 30% technical and 60% price; the contractor, a member of the Inspur Group focusing on integrated energy services, is an independent third party.

The consideration will be funded by internal group resources of RMB139,360,000 (20%) and external financing (bank loans) of RMB557,440,000 (80%), with Industrial Bank as the lending bank and terms under negotiation. The EPC contract will only become effective upon execution of the financing agreement for the project and the obtaining of shareholder approval by the Company. Payment covers a 20% advance, a 30% commencement advance, 30% upon full readiness for construction, 15% upon passing of grid-connected trial operation and up to 97% of the settled price upon completion acceptance, with the remaining 3% as a quality retention.

The Shandong project aims to support the development of the Group's new energy and services business by storing power when demand is low or generation conditions are favourable and releasing it when demand is high, improving the flexibility, reliability and efficiency of energy supply and promoting renewable energy consumption. The directors consider the transaction to be conducted on normal commercial terms, fair and reasonable, and in the interests of the Company and its shareholders as a whole.

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