AI ENERGY ENG (01751.HK): Signs 20-Year Coal Transport Framework Agreement with 1mn-Tonne Phase One Capacity

NewTimeSpace News: On 22 October 2026, AI Energy Engineering Holdings Limited (formerly Kingland Group Holdings Limited) (the "Company") voluntarily announced that Mongolia AI Energy Engineering Limited ("Mongolia AI Energy Engineering"), an indirect wholly-owned subsidiary of the Company, has recently entered into a goods transport framework agreement (the "Transport Framework Agreement") with Qianlima Coal Mine Limited ("Qianlima Coal Mine"); concurrently, Mongolia AI Energy Engineering entered into an electric heavy truck transport project joint venture agreement (the "JV Agreement") with Hainan Yiliqi Limited Liability Company ("Hainan Yiliqi") as a complementary arrangement to the Transport Framework Agreement. To the best of the directors' knowledge, information and belief after making all reasonable enquiries, Qianlima Coal Mine and its ultimate beneficial owners are third parties independent of the Company and its connected persons.

The announcement disclosed that, under the Transport Framework Agreement, Mongolia AI Energy Engineering will provide electric heavy truck coal transport services for the Qianlima open-pit coal mine, and the Mongolian joint venture to be established under the JV Agreement (the "JV Company") is intended to undertake the actual transport operations. The term of cooperation is 20 years, the transport route runs from the Qianlima open-pit coal mine to the designated cargo yard at Zamyn-Uud with a distance of approximately 380 kilometres, and the cargo consists mainly of washed clean coal; phase one is planned to build an annual coal outbound capacity of 1 million tonnes, with a target of completion and full capacity within six months from the establishment of the JV Company and the formal effectiveness of the agreement. Provided that the JV Company has the corresponding capacity, coal outbound transport from the mine to Zamyn-Uud during the cooperation period will be preferentially entrusted to the JV Company, and the shipper may not entrust such transport to third parties without the carrier's written consent. The transport price during the project payback period is RMB 160 per tonne, adjusted to RMB 120 per tonne after payback, both tax inclusive; no adjustment will be made where market transport prices fluctuate within plus or minus 20%, and the parties may negotiate an adjustment where such fluctuation is exceeded or where taxation, port and road policies change materially; freight is settled monthly based on actual volumes transported.

The Company stated that Mongolia AI Energy Engineering and Hainan Yiliqi, the holder of the Qianlima Coal Mine mining rights, propose to jointly establish the JV Company and contribute capital concurrently in proportion to their equity interests, to fund the procurement of electric heavy trucks, charging and battery swap stations and ancillary works for the phase one project; the JV Company's board will comprise three directors, two of whom will be appointed by the Group, the general manager will be appointed by the Group, and the supervisor and chief financial officer will be appointed by the mine owner, with net profit distributed in proportion to paid-in capital contributions. The JV Company intends to build charging and battery swap facilities according to the fleet's operating needs and to give priority to local wind and solar power and other clean energy in Mongolia as its power source; the scale, investment amount and construction timetable of the charging and battery swap facilities and the wind-solar microgrid remain subject to further consideration by the JV Company's board and to formal implementation documents. The board considers that the cooperation will help the Group expand its mining transport services in Mongolia, combining electric heavy truck operations with the construction of supporting energy facilities, building new wind-solar-storage-charging stations and a green power microgrid, applying green electricity to logistics transport and cultivating potential business growth drivers for the Group; the Group also plans to explore opportunities for electric heavy truck transport, charging and battery swapping and related operating services in other mining areas in Mongolia, and to study expansion into open-pit mine stripping, mining area new energy supply and related engineering services. The announcement also cautioned that the implementation of the project, achievement of transport capacity and realisation of revenue will depend on the establishment of the JV Company, capital investment, equipment procurement and construction, local approvals in Mongolia and market conditions, and that the project may not be implemented as expected or achieve the relevant targets and does not constitute a commitment regarding the Group's future performance.