Zhitong Financial App News, China Nuclear Energy Technology (00611) announced that on September 19, 2023, the buyer (an indirect wholly-owned subsidiary of the company) and the relevant sellers (Jingke and Tongwei) entered into an equipment purchase agreement for Linxiang 300MW photovoltaic project and Zhenkang 360MW photovoltaic project, the buyer conditionally agreed to buy and each seller conditionally agreed to sell equipment. Jingke 300MW equipment purchase agreement; the second Tongwei 300MW equipment purchase agreement; the second Jingke 360MW equipment purchase agreement and the consideration under the Tongwei 360MW equipment purchase agreement are RMB 252 million (the same below); 220.7 million yuan; 271.6 million yuan and 301.2 million yuan respectively. The equipment includes N-type single crystal double glass photovoltaic panels, which will be used for Linxiang 300 MW photovoltaic project and Zhenkang 360 MW photovoltaic project.

Since 2022, the Group has accelerated the adjustment of its business structure, continuously increased the proportion of investment in photovoltaic power stations and other new energy power stations, and vigorously developed the EPC business of power stations.

For many years, the Group has been committed to investing in the construction of photovoltaic power plants in China. Linxiang 300 MW Photovoltaic Project and Zhenkang 360 MW Photovoltaic Project are located in Boshang Town and Wangbin Township, Lincang City, Yunnan Province, China. The region is rich in photovoltaic resources and has the conditions for large-scale development. Investment in the construction of photovoltaic power plants will help to promote the realization of the national "double carbon goal" (carbon peak by 2030 and carbon neutralization by 2060) and rural revitalization. This is in line with the relevant national industrial policy and the strategic goal of the group to develop green energy projects.

In the wave of global energy transformation, the demand for photovoltaic installation continues to rise. As one of the main participants in China's new energy industry, the Group has successfully established its position in China's photovoltaic industry. The directors are of the view that the development of the 300 MW photovoltaic project in Linxiang and the 360 MW photovoltaic project in Zhenkang will help the Group to further expand its coverage and business territory in China, and to enter the photovoltaic industry in China as an additional source of profit for the Group in the field of new energy. Having considered the above factors, the Directors are of the view that the Linxiang 300 MW Photovoltaic Project and Zhenkang 360 MW Photovoltaic Project will enable the Group to achieve sustainable development through a diversified business portfolio, thereby expanding the Group's revenue base and enhancing its profitability.

According to the specifications and requirements of Linxiang 300 MW Photovoltaic Project and Zhenkang 360 MW Photovoltaic Project, seller's qualification and experience, product and service quality, product warranty and terms and other factors provided to the Group by other suppliers, the terms of the equipment purchase agreement were evaluated. The terms of the equipment purchase agreement are determined in accordance with the terms of the open tender and after fair consultation between the parties to the agreement. Equipment procurement is an important part of the development plan of Linxiang 300 MW photovoltaic project and Zhenkang 360 MW photovoltaic project, which will benefit the Group. Therefore, the Directors consider that the terms of each equipment purchase agreement are normal commercial terms, are fair and reasonable and are in the interests of the Group and shareholders as a whole. None of the directors has a material interest in the transactions contemplated under the equipment purchase Agreement.