CGN Power (01816) plans to invest 70 million yuan to establish a joint venture between Guangdong and Shantou Nuclear Power to develop, construct and operate the Lufeng Unit 3 and 4 nuclear power projects

According to Zhitong Finance App, CGN Power (01816) issued an announcement. On September 24, 2026, the board of directors reviewed and approved a resolution for the company (as Party A) to enter into an equity cooperative investment agreement with China First Group, Lu Feng Investment Holdings, Mingyang Group, Jiuli Special Materials and Ningde Times Zhaoqing Company (jointly as Party B). According to the equity cooperative investment agreement, Party A and Party B jointly funded the establishment of the joint venture Guangdong-Shantou Nuclear Power to carry out the development, construction and operation of the Lufeng Unit 3 and 4 nuclear power projects. The initial registered capital of Guangdong and Shantou Nuclear Power is 100 million yuan, of which the company will invest 70 million yuan in cash and hold 70% of the shares; Party B will invest a total of 30 million yuan in cash, holding 30% of the shares. After the establishment of Guangdong and Shantou Nuclear Power, it will become a non-wholly-owned subsidiary of the company.

This investment is in line with the company's overall development strategy and is conducive to promoting the national approval of the Lufeng Unit 3 and 4 nuclear power project applications. In the future, it is expected to further increase the scale of the company's nuclear motor assembly machines under construction and enhance the competitiveness of the industry.

The source of capital for this investment is the company's own funds. As of the date of this announcement, the construction price of the Lufeng Unit 3 and 4 nuclear power project has not yet been finalized; based on current progress, the Group estimates the total investment amount for the project to be about RMB 38 billion. This amount is a preliminary estimate based on currently available information. It may also be adjusted due to final project approval or construction price factors. The actual amount will be based on the final project construction price. The company's cash investment in Guangdong and Shantou Nuclear Power is 70 million yuan. The scale of the investment is manageable. It will not have a significant adverse impact on the company's financial situation and operating results, and there are no circumstances that damage the legitimate rights and interests of the company and all shareholders of the company, especially small and medium shareholders.

The transaction is expected to have no significant impact on the Group's net tangible assets or earnings per share for the financial year ended December 31, 2026; since the company has the right to appoint all members of the Guangdong Nuclear Power Board of Directors and has control over the voting rights of the Guangdong Nuclear Power Shareholders' Meeting, Guangdong Nuclear Power will become a non-wholly-owned subsidiary of the company, so the financial results, assets and liabilities of Guangdong Nuclear Power will be incorporated into the Group's accounts.