CNE TECH CORP (00611.HK): Acquisition Consideration Adjusted Down to RMB71.93m

NewTimeSpace News: On 6 October 2026, China Nuclear Energy Technology Corporation Limited (stock code: 00611) issued a third supplementary announcement on its discloseable transaction to acquire the entire equity interest in Ningxia Tianping Boguang New Energy Co., Ltd. (the target company): the consideration was adjusted from RMB80,382,640.20 to RMB71,928,735.18, a decrease of approximately RMB8.45 million or 10.5%, as agreed by the parties through arm's-length negotiation.

Three reasons for the adjustment were disclosed: first, industry and market uncertainty — following policy reforms including the continuous settlement of the Ningxia electricity spot market and the national capacity price mechanism, the Company estimates that the target's total revenue will decrease by approximately RMB5.42 million, and the parties agreed to reduce the first tranche to RMB5 million; second, the operating and financing capability of Ningxia Jiayang — which needed to raise funds for its operations, leading the parties to agree a reduction of the second tranche to RMB1.70 million; and third, the target's overall condition — due diligence found that Ningxia Jiayang had not remedied site matters involving approximately RMB1.75 million to the Company's satisfaction, and the parties agreed to reduce the third tranche by approximately RMB1.75 million.

The directors consider the adjusted consideration fair and reasonable: it represents a discount of approximately 13.9% to the target's unaudited net assets of RMB83,554,253.15 as at 28 February 2026 (a P/B of approximately 0.86 times), while the eight comparable transactions identified by the Company had P/B ratios ranging from 85.50% to 137.00%, with transactions completed after the issuance of Circular 114 typically pricing at discounts of 3.17% to 14.50% to net assets.

As at the date of the announcement, completion has taken place and the Company has paid the first, second and third tranches together with approximately RMB8.58 million (representing receivables recovered by the target after signing the agreement); the adjusted consideration of approximately RMB71.2 million has been paid to Ningxia Jiayang, with the balance of approximately RMB0.75 million to be settled after the outstanding receivables are recovered.

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