CGN POWER (01816) plans to contribute RMB 70 million to establish a joint venture company, Yueshan Nuclear Power, to carry out the development, construction, and operation of the Lufeng Units 3 and 4 nuclear power project.

CGN POWER (01816) announced that on September 24, 2026, the board of directors reviewed and approved a resolution regarding the company (as Party A) entering into an equity cooperation investment agreement with China First Heavy Industries, Lufeng Investment Holding, Mingyang Group, Jiuli Group, Zhejiang JIULI Hi-tech Metals, and Contemporary Amperex Technology Zhaoqing Company (collectively as Party B). Pursuant to the equity cooperation investment agreement, Party A and Party B will jointly contribute capital to establish a joint venture company, Yueshan Nuclear Power, to carry out the development, construction, and operation of the Lufeng Units 3 and 4 nuclear power project. Yueshan Nuclear Power will have an initial registered capital of RMB 100 million, of which the company will contribute RMB 70 million in cash, holding a 70% stake; Party B will contribute a total of RMB 30 million in cash, holding a combined 30% stake. Upon its establishment, Yueshan Nuclear Power will become a non-wholly-owned subsidiary of the company. This investment is in line with the company's overall development strategy and will help advance the application for national approval of the Lufeng Units 3 and 4 nuclear power project. It is expected to further increase the company's installed capacity of nuclear power units under construction and enhance its industry competitiveness. The source of funds for this investment is the company's own funds. As of the date of this announcement, the completed construction cost of the Lufeng Units 3 and 4 nuclear power project has not yet been finalized; based on current progress, the Group estimates that the total investment amount for the project will be approximately RMB 38 billion. This amount is a preliminary estimate based on currently available information and may still be adjusted due to final project approval or completed construction cost factors. The actual amount will be subject to the final approved project completed construction cost. The company's cash contribution to Yueshan Nuclear Power is RMB 70 million, and the investment scale is controllable. It will not have a material adverse impact on the company's financial condition or operating results, and there is no circumstance that harms the lawful rights and interests of the company and all its shareholders, especially minority shareholders. This transaction is not expected to have a material impact on the Group's tangible net asset value or earnings per share for the financial year ending December 31, 2026. As the company has the right to appoint all members of the board of directors of Yueshan Nuclear Power and has control over the voting rights at the shareholders' meeting of Yueshan Nuclear Power, Yueshan Nuclear Power will become a non-wholly-owned subsidiary of the company, and therefore the financial results, assets, and liabilities of Yueshan Nuclear Power will be consolidated into the Group's accounts.