China Isotope & Radiation Corporation (CIRC) announced that its board on 28 August 2026 approved participation in the CNNC (Zhejiang) Nuclear Technology Application Industrial Investment Fund Partnership (Limited Partnership). The new fund will have a committed size of RMB3.00 billion and will be registered in Jiaxing, Zhejiang Province.
CIRC will subscribe RMB400 million, representing 13.33 % of total commitments, and will finance the contribution from internal resources. CNNC Industrial Fund Management Co., Ltd. (CNNC Fund) will act as both general partner and fund manager with a RMB30 million commitment (1 %). Key limited partners include National Industrial Investment Fund (RMB1.00 billion, 33.33 %), CNNC (RMB200 million, 6.67 %), CNNC Capital (RMB170 million, 5.67 %), Zhejiang Province Entrepreneurship Risk Investment Guide Fund (RMB400 million, 13.33 %), Jiaxing Changchuang Industrial Investment (RMB400 million, 13.33 %) and Haiyan County State-owned Assets Investment (RMB400 million, 13.33 %). The fund will not be consolidated into CIRC’s financial statements.
All partners will fund their commitments in two instalments—40 % at the first closing and 60 % in a subsequent call—during a four-year investment period. The partnership has an eight-year term (four-year investment plus four-year exit), with up to two possible one-year extensions subject to partner approval. Annual management fees payable to CNNC Fund are set at 1.8 % of paid-in capital during the investment period and 1.5 % of unexited investment principal thereafter, with no fees in any extension or liquidation period.
Investment activity will focus 100 % on nuclear technology applications, specifically: 1. Isotope production and preparation; 2. Nuclear medicine and high-end equipment, including innovative radiopharmaceuticals; 3. Key components and upstream materials addressing sector bottlenecks.
The investment committee will comprise five members—four nominated by CNNC and related entities and one by National Industrial Investment Fund—and resolutions require at least an 80 % affirmative vote. Investments exceeding 20 % of total commitments will require unanimous partner consent.
CIRC cited strategic alignment with its core businesses in nuclear healthcare and irradiation applications, improved access to cutting-edge projects and reduced procedural costs versus direct investment as primary rationales. Directors acknowledged risks tied to the sector’s long development cycles and potential delays in capital recovery but concluded that the terms are fair and in shareholders’ interests.
Given CNNC’s 73.83 % shareholding in CIRC, the transaction constitutes a connected and discloseable transaction under Hong Kong Listing Rules. As applicable percentage ratios exceed 5 % but are below 25 %, the fund commitment is subject to reporting, announcement, annual review and independent shareholders’ approval.
An extraordinary general meeting of independent shareholders will be convened to approve the partnership agreement; an independent board committee has been formed and Rainbow Capital appointed as independent financial adviser. A circular detailing the transaction is scheduled for dispatch within 15 working days of the announcement date.
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