China Nuclear Engineering Corporation Limited has announced a plan for a private placement of shares to specific investors. The company intends to issue up to 904 million shares to raise a maximum of 4 billion yuan. After deducting issuance expenses, the net proceeds will be allocated to the construction of nuclear islands and related Balance of Plant (BOP) civil works for Units 1 and 2 of the first phase of the Jiangsu Xuwai Nuclear Heating and Power Plant. Funds will also support the civil construction and installation works for the nuclear islands and related facilities of Units 1 and 2 at the Zhejiang Jin Qimen Nuclear Power Plant, with the remaining proceeds used to repay bank loans.
According to the announcement, Units 1 and 2 of the Jiangsu Xuwai project, located in the Xuwai New Area of Lianyungang City, Jiangsu Province, are Hualong One third-generation nuclear power units with a total installed capacity of approximately 2*1,200 MW. The project is being constructed by China Nuclear Engineering's subsidiary, China Nuclear Industry Huaxing Construction Co., Ltd. The construction period is estimated at 58 months, with a total planned investment of 4.035 billion yuan. The company intends to use 1.3 billion yuan from the placement for this project, which is expected to achieve a gross profit margin of 12%, indicating favorable economic returns.
Units 1 and 2 of the Zhejiang Jin Qimen project, situated in Ningbo City, Zhejiang Province, are also Hualong One third-generation nuclear units and a key clean energy initiative for the province, with a total installed capacity of about 2,400 MW. The civil construction for the nuclear islands and related facilities will be handled by China Nuclear Engineering's subsidiary, China Nuclear Industry Er Er Construction Co., Ltd., over approximately 58 months. Concurrently, the installation works for the nuclear islands and related BOP will be undertaken by another subsidiary, China Nuclear Industry Wu Construction Co., Ltd., with a construction period of around 60 months. The total estimated investment for this project is 6.901 billion yuan, with 1.5 billion yuan earmarked from the placement proceeds. It is projected to yield a gross profit margin of approximately 12.05%.
China Nuclear Engineering stated that the fundraising projects are closely aligned with its core business operations and comply with relevant national industrial policies. The initiative is expected to further the company's expansion in the nuclear power construction sector, enhance its core competitiveness and industry influence, consolidate its market position, improve operational performance, and ensure sustainable development. Upon completion of the share issuance, the company's total assets and net assets are anticipated to increase, leading to a reduction in the asset-liability ratio and strengthening its financial foundation, thereby providing robust support for future growth.
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