Summary of CGN Power Co., Ltd. Conference Call Company Overview - **Company**: CGN Power Co., Ltd (1816.HK) - **Industry**: China Utilities - **Market Cap**: Rmb152,398.1 million - **Current Share Price**: HK$3.17 - **Price Target**: HK$2.81 - **52-Week Range**: HK$3.30 - HK$2.31 Key Financial Highlights - **3Q25 Recurring Net Profit**: Down 8% YoY to Rmb2.57 billion, slightly below consensus expectations of Rmb2.6 billion [2][7] - **Total Gross Profit**: Decreased by 18% YoY in 3Q25, continuing the trend from 1H25 [2] - **Unit Gross Profit**: Rmb0.132/kWh in 3Q25, down 15% YoY [2] - **Revenue**: Rmb20.56 billion in 3Q25, a 7% QoQ increase but a 10% YoY decline [8] - **Net Profit**: Rmb2.624 billion in 3Q25, down 10% YoY [8] Tariff Policy Changes - **Guangdong 2026 Power Tariff Policy**: The variable cost compensation mechanism has been cancelled, which is expected to lead to a rebound in nuclear power market tariffs in Guangdong [3][7] - **Impact of Tariff Changes**: The cancellation of a ~4 cent discount is anticipated to positively affect CGN Power's tariff structure [3] Market Outlook - **Earnings Trend**: The company expects the trend of declining core earnings to continue into 4Q25, influenced by a relatively low base in 2H24 [7] - **Analyst Rating**: Morgan Stanley maintains an "Overweight" rating on CGN Power, with an attractive industry view [5] Risks and Opportunities - **Upside Risks**: Include higher-than-expected utilization, upward adjustments of on-grid tariffs, and new project approvals [11] - **Downside Risks**: Include lower-than-expected utilization, downward adjustments of on-grid tariffs, and delays in new project commissioning [11] Valuation Methodology - **P/E Multiple**: A P/E multiple of 13x is applied to the 2025E EPS, with expectations of accelerating trends in new projects compared to previous years [9] Additional Insights - **Gross Margin**: Decreased to 29.8% in 3Q25, down 2.8 percentage points YoY [8] - **Effective Tax Rate**: Increased to 18.1% in 3Q25, up 0.5 percentage points YoY [8] This summary encapsulates the key points from the conference call regarding CGN Power Co., Ltd, highlighting financial performance, tariff policy changes, market outlook, and associated risks.

Group 1 - The company has completed the acquisition of stakes in four nuclear power companies, including 82% of China Guangdong Nuclear Power Huizhou Co., Ltd. and 100% of three other subsidiaries [1][2] - The transaction was approved during the company's shareholder meetings held on October 16, 2025, and the payment for the acquisition was completed by October 31, 2025 [1][2] - Following the completion of the transaction, the acquired companies have become subsidiaries of the company [2]

Core Viewpoint - China General Nuclear Power Corporation (CGN) has completed the payment for acquiring an 82% stake in China General Nuclear Huizhou Nuclear Power Co., Ltd. and 100% stakes in China General Nuclear Huizhou Second Nuclear Power Co., Ltd., China General Nuclear Huizhou Third Nuclear Power Co., Ltd., and China General Nuclear Zhanjiang Nuclear Power Co., Ltd. The related companies will become subsidiaries of CGN by October 31, 2025 [1] Group 1 - CGN has finalized the acquisition of significant stakes in multiple nuclear power companies [1] - The transaction enhances CGN's position in the nuclear power sector in China [1] - The acquired companies are set to be integrated into CGN's operations by the end of October 2025 [1]

| 证券代码：003816 | 证券简称：中国广核 | 公告编号：2025-073 | | --- | --- | --- | | 债券代码：127110 | 债券简称：广核转债 | | 中国广核电力股份有限公司 关于收购惠州核电等四家公司股权暨关联交易的进展公告 公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记载、 误导性陈述或者重大遗漏。 一、关联交易概述 1.中国广核电力股份有限公司（以下简称"公司"或"本公司"）于 2025 年 10 月 16 日召开 2025 年第一次临时股东大会、2025 年第二次 A 股类别股东大会、2025 年第二次 H 股类别股东大会，审议通过《关于收购惠州公司等四家公司股权的议案》， 本公司向中国广核集团有限公司收购其持有的中广核惠州核电有限公司 82%股权、 中广核惠州第二核电有限公司 100%股权、中广核惠州第三核电有限公司 100%股权、 中广核湛江核电有限公司 100%股权（以下简称"本次交易"），交割日为关于本次交 易对价支付完成日所在日历月的最后一个日历日。 详情请见本公司于 2025 年 8 月 27 日和 2025 年 10 月 16 日 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 CGN Power Co., Ltd.* 中國廣核電力股份有限公司 關連交易 財務總監、聯席公司秘書及董事會秘書 中國，2025年10月31日 於本公告日期，本公司董事會成員包括執行董事為高立剛先生；非執行董事為楊 長利先生、李歷女士、龐松濤先生、馮堅先生及劉煥冰先生；獨立非執行董事為 王鳴峰先生、李馥友先生及徐華女士。 （在中華人民共和國註冊成立的股份有限公司） （股份代號：1816） 有關收購惠州核電等四家公司股權事項的進展 茲提述中國廣核電力股份有限公司（「本公司」）日期為2025年9月18日的通函和日 期為2025年10月17日的投票表決結果公告（「該等公告」），內容有關（其中包括） 經本公司2025年第一次臨時股東大會、2025年第二次H股類別股東大會及2025年 第二次A股類別股東大會批准，本公司向中國廣核集團有限公司收購其持有的中 廣核惠州核電有限公司82%股權、中廣核惠州第二核電有限公司 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The Q3 performance was below expectations, primarily due to the cancellation of variable cost compensation in Guangdong [5] - The company reported a significant decline in revenue and net profit for Q3 2025, with revenue at 20.556 billion yuan, down 10.2% year-on-year, and net profit at 2.624 billion yuan, down 8.8% year-on-year [7] - The decline in electricity prices has notably impacted the company's earnings, with the average market transaction price in Guangdong dropping to approximately 0.372 yuan/kWh in Q3 2025 from 0.402-0.405 yuan/kWh in the same period last year [7] - The company has 20 nuclear power units under construction, which will support long-term growth, with the first unit expected to be operational in H2 2025 [7] - The cancellation of the variable cost compensation mechanism in Guangdong is expected to positively impact the company's annual long-term contract electricity price by approximately 0.02 yuan/kWh starting in 2026 [7] Financial Summary - Revenue projections for 2023 to 2027 are as follows: 82.549 billion yuan (2023), 86.804 billion yuan (2024), 85.734 billion yuan (2025E), 89.262 billion yuan (2026E), and 92.637 billion yuan (2027E) [6] - The expected net profit for the same period is: 10.725 billion yuan (2023), 10.814 billion yuan (2024), 10.001 billion yuan (2025E), 10.804 billion yuan (2026E), and 11.299 billion yuan (2027E) [6] - The projected earnings per share (EPS) are: 0.21 yuan (2023), 0.21 yuan (2024), 0.20 yuan (2025E), 0.21 yuan (2026E), and 0.22 yuan (2027E) [6] - The company’s return on equity (ROE) is expected to decline from 9.47% in 2023 to 8.00% in 2025E, before slightly recovering [6]

FF301 備註： | 2. 股份分類 | 普通股 | 股份類別 | A | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 003816 | 說明 | A股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 39,334,986,100 | RMB | | 1 RMB | | 39,334,986,100 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 39,334,986,100 | RMB | | 1 RMB | | 39,334,986,100 | 公司名稱: 中國廣核電力股份有限公司 呈交日期: 2025年10月31日 I. 法定/註冊股本變動 致：香港交易及結算所有限公司 證券代號 (如上市) 01816 說明 H股 法定/註冊股份數目 面值 法定/註冊股本 上月底結存 11,163,625,000 RMB 1 RM ...

Core Viewpoint - China General Nuclear Power Corporation (CGN) has experienced a decline in stock price and financial performance, with a notable decrease in revenue and net profit year-on-year, indicating potential challenges in the nuclear power sector [1][2]. Financial Performance - As of September 30, 2025, CGN reported operating revenue of 59.723 billion yuan, a year-on-year decrease of 4.09% [2]. - The net profit attributable to shareholders was 8.576 billion yuan, reflecting a year-on-year decline of 14.10% [2]. - Year-to-date stock price has decreased by 1.36%, with a slight decline of 0.25% over the last five trading days, but a notable increase of 9.64% over the last 20 days and 8.15% over the last 60 days [1]. Shareholder Information - The number of shareholders as of September 30, 2025, was 228,200, a decrease of 3.46% from the previous period [2]. - The average number of circulating shares per shareholder increased by 3.61% to 174,612 shares [2]. - CGN has distributed a total of 26.057 billion yuan in dividends since its A-share listing, with 13.938 billion yuan distributed in the last three years [3]. Stockholder Composition - As of September 30, 2025, the second-largest circulating shareholder was Hong Kong Central Clearing Limited, holding 7.487 billion shares, a decrease of 621 million shares from the previous period [3]. - Huatai-PB CSI 300 ETF and E Fund CSI 300 ETF were among the top ten circulating shareholders, with respective holdings of 134 million shares and 96.822 million shares, both showing a decrease compared to the previous period [3]. Business Overview - CGN is primarily engaged in the construction, operation, and management of nuclear power plants, with electricity sales accounting for 78.27% of its main business revenue [1]. - The company is classified under the public utility sector, specifically in electricity and nuclear power generation [1].

Summary of China General Nuclear Power Corporation (CGN) Conference Call Company Overview - **Company**: China General Nuclear Power Corporation (CGN) - **Reporting Period**: First three quarters of 2025 Key Financial Metrics - **On-grid Power Generation**: 217.09 billion kWh, a 3.17% year-over-year increase [2][3] - **Subsidiaries' Contribution**: 135.742 billion kWh, up 4.15% year-over-year [2][3] - **Revenue**: RMB 59.723 billion, a 4.09% decrease year-on-year [2][3][10] - **Net Attributable Profit**: RMB 8.576 billion, down 14.14% year-on-year; adjusted profit (excluding non-recurring items) was RMB 8.18 billion, reflecting a decline of 16.05% [2][3][10] - **Liability Ratio**: 60.8%, an increase of 1.1 percentage points from the end of 2024 [2][11] - **Interest Coverage Ratio**: Stable at 4.6 times year-on-year [2][11] Operational Performance - **Electricity Consumption Growth**: China's total electricity consumption grew by 4.6% year-on-year, reaching approximately 7.77 trillion kWh [2][4] - **Utilization Rate**: Average utilization rate of managed nuclear units increased to 5,750 hours, an improvement of 50 hours compared to last year [4] - **Refueling Outages**: Fewer refueling outages compared to the same period last year contributed positively to performance [4] Market Dynamics - **Market-based Power Transactions**: Accounted for 56.2% of total transactions, up five percentage points from last year; Guangdong province's share increased to approximately 31.8% [4][5] - **Average Market Transaction Price**: Decreased to RMB 0.356 per kWh, down approximately RMB 0.034 from the previous year [5][8] Significant Projects - **Cangnan Unit Two**: Commenced cold functional testing [6] - **HPR1,000 Batch Construction**: Progressing smoothly [6] - **Fangchenggang Unit Four**: Began commercial operation [6] - **Annual Maintenance**: Included twelve annual refueling outages and two ten-year outages, all conducted as planned [6] Future Outlook and Strategies - **Guangdong Power Market Transactions for 2026**: Up to 40% of power generated by specific nuclear plants will serve as the annual market transaction cap [2][14] - **Cost Management**: Focus on controlling inspection and maintenance costs, leveraging advanced technologies for efficiency [32] - **Dividend Policy**: Plans to align post-2025 dividend payouts with investor expectations and regulatory guidelines [32] Additional Insights - **Back Tax Payments**: Total of approximately RMB 1.2 billion, impacting net attributable profit by around RMB 300-400 million [20] - **VAT Refunds**: Positive progress for Yangjiang, with Fangchenggang facing challenges but still securing more refunds than last year [25][30] - **Asset Injection Plans**: Huizhou Nuclear Power to be injected into CGN by the end of 2025 [19] Conclusion CGN's performance in the first three quarters of 2025 reflects a mix of operational stability and financial challenges, influenced by market dynamics and strategic project developments. The company is focused on maintaining operational efficiency while navigating the evolving electricity market landscape.

Performance Overview - In the first three quarters of 2025, the company's subsidiaries achieved a total electricity generation of 135.746 billion kWh, a year-on-year increase of 4.15% [1] - The total electricity generation from subsidiaries and joint ventures reached 172.179 billion kWh, reflecting a year-on-year growth of 3.17% [1] - The company's operating revenue was RMB 59.723 billion, a decrease of 4.09% year-on-year [2] - The net profit attributable to shareholders was RMB 8.576 billion, down 14.14% year-on-year; after excluding non-recurring gains, the net profit was RMB 8.180 billion, a decline of 16.05% [2] Operational Metrics - The company completed 15 major overhauls in the first three quarters, with a total overhaul duration of approximately 578 days, which is 28 days less than the previous year [2] - As of September 30, 2025, the company managed 20 units under construction, including 8 units entrusted by the controlling shareholder, with overall project construction progressing steadily [2] Financial Indicators - The company's Return on Equity (ROE) and Return on Assets (ROA) decreased by 1.5 and 0.8 percentage points, respectively, compared to the same period last year, primarily due to a decline in average market electricity prices [2] - The debt-to-asset ratio stood at 60.8% as of September 30, 2025 [2] - The net cash flow from operating activities was RMB 20.792 billion, indicating a stable cash flow situation that supports the company's development [2] Market and Investment Insights - The marketization ratio of the company's managed nuclear power units in Guangdong Province was approximately 31.8% in the first three quarters, showing an increase year-on-year [3] - The average market electricity price has decreased due to overall declines in market transaction prices [3] - The 2026 marketization trading plan for Guangdong Province has been released, with a 5% increase in marketization ratio compared to 2025 and the removal of variable cost compensation for nuclear power [3] Future Outlook - The company plans to conduct 19 major overhauls in 2025, with 3 already completed by October 30, 2025, and expects a reduction in total overhaul days compared to 2024 [3] - The company is actively preparing for project approvals for nuclear power sites, aiming to meet the application conditions for more projects [4]