According to the Zhitong Finance App, 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 equipment purchase agreements for the Linxiang 300 MW PV project and the Zhenkang 360 MW PV project. The buyer conditionally agreed to the purchase and each seller conditionally agreed to sell the equipment. The costs under the Jingke 300 MW equipment purchase agreement; the second Tongwei 300 MW equipment purchase agreement; the second Tongwei 360 MW equipment purchase agreement and the Tongwei 360 MW equipment purchase agreement were RMB 252 million (same unit); 220.7 million yuan; 271.6 million yuan and 301.2 million yuan, respectively. The equipment includes N-type monocrystalline double glass photovoltaic panels, which will be used for the Linxiang 300 MW PV project and the Zhenkang 360 MW PV project.

Since 2022, the Group has accelerated business restructuring, continuously increased the proportion of investment in new energy power plants such as photovoltaic power plants, and vigorously developed the EPC business for power plants.

Over the years, the Group has been committed to investing in the construction of photovoltaic power plants in China. The Linxiang 300 MW PV Project and the Zhenkang 360 MW PV Project are located in Boshang Town and Busing Township, Lincang City, Yunnan Province, China, respectively. The region is rich in photovoltaic resources and has the conditions for large-scale development. Investing in the construction of photovoltaic power plants is conducive to promoting environmental protection goals and rural revitalization of the country's “dual carbon target” (carbon peak by 2030 and carbon neutrality by 2060). This is in line with relevant national industrial policies and the Group's strategic goals for developing green energy projects.

Under the wave of global energy transformation, demand for PV installations continues to rise. As one of the major players in China's new energy industry, the Group has successfully established its position in the Chinese photovoltaic industry. The director believes that the development of the Linxiang 300 MW PV project and the Zhenkang 360 MW PV project will help the Group further expand its coverage and business footprint in China, and enter the Chinese photovoltaic industry, becoming an additional source of profit for the Group in the field of new energy. After considering the above factors, the director believes that the Linxiang 300 MW PV project and the Zhenkang 360 MW PV project can enable the Group to achieve sustainable development through a diversified business portfolio, thereby expanding the Group's revenue base and enhancing its profitability.

The Group evaluated the terms of the equipment purchase agreement based on the specifications and requirements of the Linxiang 300 MW PV project and the Zhenkang 360 MW PV project, the seller's qualifications and experience, product and service quality, product warranty, and the terms provided to the Group by other suppliers and other factors. The terms of the equipment purchase agreement are determined in accordance with the terms of the public tender and after fair negotiations between the parties to the agreement. The procurement of equipment is an important part of the Group's Linxiang 300 MW PV project and Zhenkang 360 MW PV project development plan. The relevant projects will benefit the Group. Therefore, the director believes that the terms of each equipment purchase agreement are normal commercial terms, are fair and reasonable, and conform to the overall interests of the Group and shareholders. No director has a significant interest in the proposed transaction under the equipment purchase agreement.