China National Nuclear Power Transfers RMB 2.796 Billion in Assets to Optimize Equity in Xin'an Project

Recently, China National Nuclear Power (601985.SH) issued an announcement that its controlled subsidiary CNNC Shandong Nuclear Energy Co., Ltd. plans to transfer, through a non-public agreement, the pre-construction asset group of RMB 2.796 billion (excluding tax) related to Units 1 and 2 of the Haiyang Xin'an Nuclear Power Project to its wholly-owned subsidiary CNNC (Shandong) Second Nuclear Energy Co., Ltd. (Shandong No. 2 Nuclear).

It is reported that the transferred assets mainly consist of costs for site preparation, preliminary licensing, survey and design, and environmental impact assessment. The transaction is priced based on the special audit value as of March 31, 2026, and will not generate appraisal premiums or disposal gains or losses. The Haiyang Xin'an Nuclear Power Project belongs to the CNNC group system and is planned to accommodate 4 “Hualong One” pressurized water reactors and 2 high-temperature gas-cooled reactors. The assets transferred this time correspond to the pre-construction investment for Units 1 and 2 “Hualong One” reactors.

The core of this internal asset restructuring lies in achieving “entity alignment” to create conditions for introducing private capital. By injecting the pre-construction investment of new units into the independent and asset-clean Shandong No. 2 Nuclear platform, private enterprises and local industrial capital can in the future directly take equity stakes through capital increases or equity transfers, avoiding equity carving of CNNC Shandong's original complex existing assets and greatly shortening the approval path.

This move actively responds to the policy requirement of the General Office of the State Council to encourage private capital to hold more than 10% equity in major national projects such as nuclear power. Through the innovative model of “central enterprise pre-funding and incubation, project company taking over assets, and subsequent opening to private equity participation,” China National Nuclear Power has provided an operable practical example for introducing diversified capital and optimizing governance structures in China's nuclear power projects.