The company, China Guangdong Nuclear Power Group Co., Ltd. (Guangdong Nuclear Power), Shenneng Co., Ltd. (Shenneng Company) and Shanghai Electric Power Co., Ltd. (Shanghai Electric Power) plan to establish a new joint venture, Anhui Wuhu Nuclear Plant (Wuhu Nuclear), with planned holding proportions of 15%, 51%, 20% and 14% respectively. The registered capital of Wuhu Nuclear will be RMB 200 mln, of which a capital contribution of RMB 30 mln will be borne by the company.

Upon the establishment, Wuhu Nuclear will oversee the development and construction of the first phase of a 2 million kilowatt-class nuclear power unit project. At present, the Development and Reform Commission of Anhui Province is cooperating with Guangdong Nuclear Power to submit the project proposal of Wuhua Nuclear (Phase I) to relevant government authorities.

A proposal related to the joint establishment of Wuhu Nuclear was approved at the 23rd Meeting of the 5th Board of Directors, held on 24 Sept 2008. It is projected that the establishment of Wuhu Nuclear (Phase I) will optimize the structure of the company's assets and increase its capacity for sustainable development.

There still exists uncertainty as to whether the project will be approved by relevant government authorities, in addition, the project will not be able to generate targeted revenue within the near future, thus investors are advised to exercise caution when dealing in the company's shares.

Related developments in the matter will be disclosed in a timely manner as information becomes available.

Board of Directors
26 Sept 2008


Source: Securities Times

Date: 26 Sept 2008

CN01/VW/DM/BT/KM