CIRC (01763) subsidiary China Nuclear High-Tech initiates capital increase listing to bring in industrial capital and strengthen existing businesses.

CIRC (01763) announces that, in relation to the proposed capital increase by its non-wholly-owned subsidiary China Nuclear High-Tech through a public listing process at the China Beijing Equity Exchange, the board has resolved to approve the potential capital increase. The potential capital increase is intended to raise funds corresponding to 17,645,851 new shares of China Nuclear High-Tech, representing a 20% equity interest. The potential capital increase shall be conducted through a public listing process at an approved equity exchange, and will be carried out through the China Beijing Equity Exchange. The selected investors will enter into a capital increase agreement in accordance with the relevant rules of the China Beijing Equity Exchange and relevant PRC laws and regulations. In order to carry out the formal public listing process for the potential capital increase, China Nuclear High-Tech has, on the date of this announcement, submitted a listing notice to the China Beijing Equity Exchange in respect of the potential capital increase, including (but not limited to) (i) the shareholding percentage (%) or number of shares corresponding to the proposed fundraising amount; (ii) the proposed number of investors to be solicited; and (iii) the qualification requirements and capital increase conditions for potential interested investors. The announcement period will initially be twenty (20) business days after the date of the listing notice. During the announcement period, eligible interested investors may submit applications to the China Beijing Equity Exchange. Interested investors that pay the transaction deposit and pass qualification confirmation will become qualified interested investors. This capital increase aims to meet the funding needs of China Nuclear High-Tech for future business development and capital expenditure, and to introduce strategic investors with relevant industrial resources. According to the business development plan of China Nuclear High-Tech, it intends to increase research and development investment in areas such as new-type radioactive sources and source-containing equipment during the "15th Five-Year Plan" period, advance the construction of production bases, and gradually extend the existing industrial chain through potential acquisitions. In view of the relatively large funding requirements involved in the above business development plans and the fact that the existing internal resources of China Nuclear High-Tech are insufficient to fully meet the relevant funding needs, this capital increase is expected to help supplement its development funds and optimize its capital structure. At the same time, considering the support policies related to the nuclear technology application industry introduced by national and local governments in recent years, China Nuclear High-Tech intends to introduce investors with relevant industry experience and resources through this capital increase to explore cooperation opportunities in technology research and development, industrial chain expansion, and market development, thereby supporting the development of its existing businesses and the expansion of related business areas. The potential capital increase is intended to raise funds corresponding to a 20% new equity interest in China Nuclear High-Tech. Upon completion of the capital increase, the Company's shareholding percentage in China Nuclear High-Tech will decrease but will remain at a controlling position. The Company hopes to support the development of China Nuclear High-Tech by introducing diversified shareholders, generate synergies with shareholders in areas such as the market and industry, and continue to give play to the role of new investors as long-term shareholders, active shareholders, enabling shareholders, and strategic shareholders, so as to support the long-term development of China Nuclear High-Tech.