AI Energy Engineering Holdings Limited Announces RMB100 Million Procurement Agreement and Major Advance Payment

Key Highlights for Investors

• Significant Procurement Agreement: The Group’s wholly-owned subsidiary, Kingever Construction Company Limited, has entered into a substantial procurement cooperation agreement with Lik Yue Investment (Hong Kong) Co Limited, appointing Kingever as the exclusive Greater China agent for gas turbine generator sets.
• Contract Value & Term: The agreement covers a 30-month period, from 6 March 2026 to 5 September 2028, with an estimated total procurement value of RMB100 million.
• Major Prepayment: Kingever is required to make a HK\$12 million prepayment to the Supplier within 10 days of signing. This amount exceeds 8% of the Group’s total assets as at 30 June 2025, triggering a disclosure requirement under Rule 13.13 of the Hong Kong Listing Rules.
• Terms of Prepayment: The prepayment is unsecured, interest-free, and without collateral. If no purchase orders are placed within six months, the full amount is refundable to Kingever.
• Supplier Information: The Supplier is an independent Hong Kong company specializing in gas-powered internal combustion engines, power generation equipment, and gas processing technology. It is not a connected party to the Group.
• Price Sensitive Disclosure: The size of this prepayment and the nature of the agreement may be considered price sensitive and could impact share value, particularly given the magnitude relative to the Group’s assets and the pivotal role the products play in the Group’s smart computing energy engineering projects.
• Ongoing Disclosure: The Company will continue compliance with disclosure obligations under Rule 13.20 if the prepayment remains outstanding at interim or year-end reporting dates.

Detailed Report

AI Energy Engineering Holdings Limited (formerly Kingland Group Holdings Limited) has announced a major procurement deal through its subsidiary, Kingever Construction Company Limited. On 6 March 2026, Kingever entered into a procurement cooperation agreement with Lik Yue Investment (Hong Kong) Co Limited, which will see Kingever act as the exclusive agent for gas turbine generator sets across Greater China. The generator sets are intended for use in the Group’s smart computing energy engineering projects, potentially supporting growth in the rapidly expanding energy-tech sector.

The agreement, which is set to run for approximately 30 months (from 6 March 2026 to 5 September 2028), comes with a substantial estimated procurement value of RMB100,000,000. In line with the agreement, Kingever is required to advance a prepayment of HK\$12,000,000 to the Supplier within 10 days of signing. This prepayment is not secured by any assets, carries no interest, and requires no collateral. Importantly for investors, should Kingever fail to place any purchase orders within six months of the prepayment, the entire sum is refundable to the company.

The scale of this prepayment is significant: it exceeds 8% of the Group’s total assets as of the last interim financial statement (30 June 2025). This threshold triggers a mandatory disclosure under Rule 13.13 of the Listing Rules, underscoring the materiality of the transaction and its potential impact on the Group’s financial position and risk profile.

The Supplier, Lik Yue Investment (Hong Kong) Co Limited, is a Hong Kong-incorporated company with a focus on the R&D and production of gas-powered internal combustion engines, power generation equipment, and gas processing technology. The company and its ultimate beneficial owners are confirmed to be independent third parties, with no connections to AI Energy Engineering Holdings Limited or its affiliates.

The Board of Directors, including Chairman and Executive Director Mr. Cao Yifan, assert that the advance payment is on normal commercial terms and in the ordinary course of business. The Company also affirms its commitment to ongoing compliance, stating that if the circumstances persist at the next interim or annual reporting period, further disclosures will be provided in accordance with Rule 13.20.

Potential Impact on Share Price

• The large prepayment and the size of the procurement agreement are material relative to the Group’s asset base, and are likely to be viewed as significant by investors and analysts.
• Investors should monitor the execution of the procurement plan and the placement of purchase orders, as any delays or failure to utilize the prepayment could impact the Group’s cash position and risk profile.
• The agreement positions the Group for expansion in the smart energy sector, which could be positive for long-term value creation if successfully executed.

Board Information

As of the announcement date, the Board comprises Executive Directors Mr. Cao Yifan (Chairman), Mr. Cheung Shek On (Vice-Chairman), and Ms. Pang Xiaoli; and Independent Non-executive Directors Mr. Tam Tak Kei Raymond, Ms. Zhang Zhang, and Ms. Chen Yunxia.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a professional advisor before making investment decisions. The information herein is based on disclosures by AI Energy Engineering Holdings Limited as of 16 March 2026, and may be subject to further updates or amendments.

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