CGN debuts China’s No 1 listed company in nuclear technology application in Shenzhen

        A ceremony was held on Feb 27 on the floor of the Shenzhen Stock Exchange (SZSE) to mark the listing of CGN’s applied nuclear science and technology assets on the A-share market.

Earlier, CGN Nuclear Technology Application Co Ltd (CGNAT), a subsidiary of China General Nuclear Power Corporation (CGN), and China Dalian International Cooperation (Group) Holdings Ltd (Dalian International) Co Ltd, completed a major asset restructuring. Dalian International was officially renamed as the CGN Nuclear Technology Development Co Ltd (CGNNT, 000881.SZ) at Monday’s ceremony.

Following the bell-ringing ceremony, CGNNT became the country’s first non-power nuclear technology application company to go public, as well as CGN’s first listed company on the A-share market.

At 9:25 am on Feb 27, senior executives including CGN Chairman He Yu, CGNAT Chairman Zhou Zhenxing, and CGNNT Chairman and General Manager Zhang Jianfeng rang the bell at the SZSE.

SZSE’s General Manager Wang Jianjun and Deputy General Manager Li Mingzhong also attended the ceremony. In his speech, Li congratulated CGNNT on the renaming and getting listed on the stock market. 

China’s first listed company in nuclear technology application

In an announcement filed to the Shenzhen Stock Exchange on Jan 24, Dalian International said a major asset restructuring between the company and CGNAT had been completed, making CGNAT its largest shareholder and CGN the actual controlling shareholder of Dalian International. Dalian International was officially renamed as CGNNT on Monday, and its main business will transform from traditional ocean transport to non-power nuclear technology.

At a press conference following the listing ceremony, CGNNT Chairman and General Manager Zhang Jianfeng said the deal consisted of two parts – 4.2 billion yuan ($645 million) through share acquisition and another 2.8 billion yuan through private placements. The restructuring will incorporate 10 high-tech companies, two third-party accredited state laboratories, one academician workstation, four post-doctoral research workstations, two national research platforms and 13 local research centers, which hold more than 300 patents and 2,000 technological know-hows.

The restructuring was the largest of its kind in China, Zhang said. As CGNAT was a leading manufacturer and operator in all fields of nuclear technology application in China, “CGNNT, the first domestic nuclear technology application company to get listed on the stock market, is also China’s No 1 public company in nuclear technology application in every sense,” he said.

According to Zhang Shanming, president of CGN, the group owns three listed companies on the H-share market – CGN Power Co Ltd (01816.HK), CGN New Energy Holdings Co Ltd(01811.HK) and CGN Mining Co Ltd (01164.HK). With CGNNT getting listed on the A-share market through the latest deal, CGN now owns a total of four listed companies, which will serve as financing platforms in nuclear power, nuclear fuels, new energy and nuclear technology sectors.

Tapping trillion-dollar market

According to CGNNT General Manager Zhang Jianfeng, nuclear technology applications are widespread in people’s daily lives and are related to about one-third of segments of the manufacturing industry.

Across the world nuclear technology is also widely used, in the fields including industry, agriculture, biology, medical care, food safety, environmental protection, resources exploration and public security, he said. About 150 countries and regions have made efforts in nuclear technology research, development and application, generating annual output of nearly a trillion dollars. As an emerging industry in China, a 100-billion-yuan market has also been created, according to him. He expected China’s nuclear technology applications to see even faster growth with the commercialization of more mature technologies.

Since its launch in 2011, CGNAT has been growing rapidly and seen an annual sales compound growth in excess of 300 percent. To CGN president Zhang Shanming, nuclear technology application is a green, environmentally-friendly sunrise industry that has huge potential. “It is a strategic industry for CGN to tap further and has even greater growth potential than nuclear power, judging from developed countries’ experiences,” Zhang noted.

CGN will give full support to the growth of its listed companies, as part of the effort to help drive further integration and upgrading of China’s nuclear technology industries, and work to develop nuclear technology application into a new pillar sector for CGN, Zhang said.