CGN Power to buy 46% of Cangnan Nuclear Power and 51% of Cangnan Second Nuclear Power from parent CGN for RMB 8.35 billion

CGN Power announced a discloseable and connected transaction to acquire equity interests in two Zhejiang-based project companies from its controlling shareholder, China General Nuclear Power Corporation (CGN).

The deal covers 46% of CGN Cangnan Nuclear Power and 51% of CGN Cangnan Second Nuclear Power. Total cash consideration is set at RMB 8.35 billion, comprising RMB 6.54 billion for the first company and RMB 1.81 billion for the second. Payment will be funded by internal resources and made within five working days after all conditions precedent are met.

Valuations were performed by Beijing Huaya Zhengxin Assets Appraisal using the asset-based approach. As of 30 September 2025, the entire shareholders’ equity of Cangnan Nuclear Power was valued at RMB 13.55 billion, while that of Cangnan Second Nuclear Power was valued at RMB 3.39 billion.

The two target companies are developing six Hualong One reactors (Units 1-6) at the San’ao site in Cangnan County, Zhejiang: • Cangnan Phase I (Units 1-2, 2.42 GW) – Unit 1 entered commercial operation on 29 April 2026; Unit 2 is scheduled for 2027. • Cangnan Phase II (Units 3-4, 2.43 GW) – Unit 3 targets commercial operation in 2030; Unit 4 is in the pre-FCD stage. • Cangnan Phase III (Units 5-6, each 1 GW) – in preparatory stage prior to regulatory approval.

Total investment budgets stand at RMB 48.65 billion for Phase I and RMB 43.79 billion for Phase II. Shareholders of each project will inject capital in tranches equal to 30% of the respective total investment.

Completion is conditional on, among others, independent shareholder approval, waiver of pre-emptive rights by other shareholders of the target companies, and state-owned asset regulatory clearance. During the transition period (30 September 2025 to closing), profits or losses will be borne by CGN according to its existing shareholding.

CGN currently owns 58.89% of CGN Power and will abstain from voting on the resolution. An extraordinary general meeting is scheduled for 18 June 2026 in Shenzhen to seek independent shareholders’ approval.

Following completion, both target companies will become subsidiaries of CGN Power, increasing the listed firm’s controlled nuclear capacity pipeline by 4.86 GW and aligning with CGN’s undertaking to inject competing nuclear assets into its listed platform.