Shandong Hi-Speed New Energy Group Limited (SDHS New Energy) has entered into a RMB1.20 billion (USD ≈ 166 million) engineering, procurement and construction (EPC) contract with a consortium comprising China Construction Second Engineering Bureau (CC2 Bureau) and China Power Construction Group Guiyang Survey & Design Institute (China Power Guiyang Research Institute). The project covers a 287.5 MW onshore wind farm in Dingtao District, Heze City, Shandong Province.
The EPC scope spans full-cycle delivery—from site survey and design through equipment procurement, transportation, civil works, installation, commissioning and final acceptance. Construction is scheduled for completion within 596 calendar days following the formal commencement notice.
Contract price breakdown: • RMB670.51 million for equipment procurement • RMB346.39 million for construction and installation • RMB100.99 million for safety and civilised measures • RMB7.19 million for survey and design • RMB13.71 million for miscellaneous items • RMB58.63 million in provisional sums
The fixed unit cost is capped at RMB4.1649 per watt; settlement will be adjusted if the installed capacity deviates from the approved 287.5 MW. Payment terms include an advance of up to 10%–20% of category costs, staged progress payments tied to delivery milestones, and retention via bank guarantees amounting to 10% of main-equipment value and 3% of other works.
Financing will combine internal resources and bank borrowings. Upon commissioning, the wind farm will be owned and operated by Heze Shandong Hi-Speed Wind Power Co., Ltd., an indirect wholly owned subsidiary of SDHS New Energy.
Strategic Rationale Management states that the project reinforces the group’s expansion in China’s clean-energy sector, aligns with national carbon-neutrality goals, and deepens SDHS Group’s footprint in the Shandong market. The EPC deal is deemed to be conducted on normal commercial terms following a competitive tender in which the joint contractors achieved the highest bid score among seven contenders.
Financial and Regulatory Impact With the contract amount representing more than 25% but less than 100% of the applicable percentage ratios under Hong Kong Listing Rules, the transaction is classified as a major transaction. Majority shareholder Shandong Hi-Speed Holdings (56.97% stake) has provided written approval, obviating the need for a general meeting.
As at 31 December 2025, SDHS New Energy reported total assets of RMB48.54 billion and total liabilities of RMB28.80 billion. The company expects total assets to rise upon project completion, funded by existing cash and bank facilities. No immediate material impact on earnings is anticipated, and management affirms that current resources and financing lines are sufficient to meet working-capital needs for at least the next 12 months.
The wind project is scheduled to enter operation within the first half of 2028, further supporting SDHS New Energy’s strategy of “enhancing wind power, stabilising solar power, deploying storage and expanding hydropower” under China’s 15th Five-Year Plan.