Serving the Overall Situation and Deepening Core Business

Accelerating the Construction of a World-Class Enterprise

Consolidating leading advantages and enhancing core competitiveness. Closely aligning with the national strategic deployment of "actively, safely, and orderly developing nuclear power," we forged leading advantages in nuclear power construction and advanced the "three-step" nuclear energy strategy with greater depth and solidity. We undertook the batch construction of the major national project "Hualong One" and international mega-science projects like the International Thermonuclear Experimental Reactor (ITER) with high quality and standards, successfully completing various annual milestone nodes. To date, the company has accumulatively undertaken the construction of 101 units, achieving a qualitative leap; 36 units are currently under construction, reaching a record high. Seven units, namely Lufeng Unit 1, Lufeng Unit 2, Jin Qimen Unit 1, Ningde Unit 6, San'ao Unit 3, Zhaoyuan Unit 1, and Bailong Unit 1, achieved First Concrete Pouring (FCD). Three units, namely Sanmen Unit 4, Haiyang Unit 4, and Lufeng Unit 6, completed dome lifting. Two units, namely Zhangzhou Unit 1 and Rongcheng Unit 2, commenced commercial operation.

Establishing standards and norms, leading industry development. The company undertook tasks from the National Energy Administration's Nuclear Power Industry Quota General Station with high quality, further standardizing quota management for nuclear power plant construction projects to better serve the high-quality development of the nuclear industry chain. We strengthened the operational system construction of the Quota General Station, released the "Nuclear Power Plant Nuclear Island Engineering Budget Quota," revised the "Nuclear Power Plant Conventional Island Engineering Budget Quota," promoted the application of new quotas, and advanced the "three-step" nuclear energy strategy with greater depth and solidity. We built an integrated collaborative system for the nuclear power industry chain, continuously improving the level of integrated design and construction, as well as integrated construction and installation. We completed the compilation of the World Association of Nuclear Operators (WANO) Construction Industry Peer Assessment (Civil and Installation) system standards and organized pilot applications, continuously shaping leading advantages.

Deepening Reform, Improving Quality and Efficiency

Steadily Advancing the Company's High-Quality Development

Adhering to steady and long-term progress, promoting enterprise reform and development. The company consistently drives high-quality development, with a trillion-yuan scale comprehensive economy showing steady progress. It ranked 123rd on the 2025 Engineering News-Record (ENR) "Top 250 International Contractors" list and 38th among Chinese enterprises, significantly enhancing the international influence of its engineering contracting brand. CNEC's subsidiary, China Nuclear Mechanical Engineering, has ranked among the global top 10 in the International Crane Operations IC100 list for four consecutive years and has been recognized as one of China's Top 10 Lifting Enterprises (State-Owned) for ten consecutive years. We continue to drive traditional industries towards high-end, intelligent, and green development, foster new quality productive forces according to local conditions, continuously strengthen, optimize, and enlarge the enterprise, and implement the positioning of the "three functions."

Deepening value creation, focusing on enhancing sustainable development capabilities. The operational indicators of "One Profit and Five Ratios" were further optimized. Adhering to the combination of "stabilizing the present and benefiting the long-term," we spared no effort in resolving historical issues, driving comprehensive improvement in indicators such as asset-liability ratio, accounts receivable and inventory, and operating cash flow, enhancing operational quality and efficiency, and focusing on improving the company's value creation and sustainable development capabilities. CNNC's reform assessment has been rated Grade A for four consecutive years, and two "Double Hundred Action" enterprises have received the highest rating of "Benchmark" from the SASAC assessment for four consecutive years.

Focusing on tapping potential and increasing revenue, promoting high-quality and stable growth. Members of the company's leadership team personally engaged, supervised key tasks with assigned responsibilities, and set targets for everyone, treating "high-quality and stable growth" as an important political task to be advanced under pressure. After in-depth research, we promptly issued the "CNEC 2025 High-Quality and Stable Growth Supporting Incentive and Constraint Plan," focusing on tapping potential for revenue increase, debt collection, and expense reduction, implementing strong constraints and heavy incentives, and making every effort to implement measures to bridge gaps.

Innovative Development, Technology Leading the Way

Deeply Empowering the Development of New Quality Productive Forces

Technological innovation empowers the enhancement of advanced construction capabilities. Deepening "intelligent manufacturing, intelligent construction, and digital management," we gradually built a "large rear, small front" construction model. Taking the Jin Qimen project as a pilot, we implemented the group company's integrated design and construction implementation plan.

Focusing on value creation, promoting technology research and development. We established the Nuclear Power Advanced Construction Center to accelerate the formation of standardized and serialized advanced construction technologies. We mapped out the technology roadmap in the construction field, establishing three major modernization transformations and six key R&D directions. Focusing on the goal-oriented transformation of achievements, we explicitly incorporated the effectiveness of achievement transformation into the assessment system.

Innovation-driven development, digital transformation empowers new quality productive forces. We conducted in-depth discussions on the top-level design and implementation path of the company's digital transformation. We continued to implement "intelligent manufacturing + intelligent construction + digital management." The first set of equipment for the mobile factory entered the on-site debugging stage, and factory digital systems such as MES and SCADA were successfully deployed. We resolutely promoted the deployment and implementation of "Nuclear Intelligence Hub ERP," adopting a "concentrated major campaign" model to launch pilot projects in the first batch of four units.

Deepening international cooperation, innovation-driven industrial chain development. We innovatively achieved a panoramic cooperation model with Électricité de France (EDF) covering "management consulting + technical consulting + technology R&D + personnel exchange + industrial chain cooperation." Cooperation with EDF continued to deepen, signing the "Joint Laboratory Agreement for Advanced Nuclear Power Construction Technology" and the "Supplemental Agreement to the EPR2 Special Task Strategic Consulting Contract." During the French President's visit to China, we facilitated the signing of the "Letter of Intent for Deepening Comprehensive Cooperation in Advanced Nuclear Power Construction" between the group company and EDF, deepening the panoramic cooperation.

Focusing on Key Points, Resolving Difficulties

Deepening Reform and Enhancement with Greater Depth and Solidity

Comprehensively completing the tasks and objectives of the reform deepening and enhancement action. The overall completion rate of the company's reform task list reached 100%. We improved corporate governance, with the company headquarters and 49 subsidiary enterprises included in the group company's management grading fully completing the board of supervisors reform. We revised and improved the "World-Class Enterprise Construction Plan" and established a world-class enterprise indicator evaluation system with CNEC characteristics. The company has been rated Grade A in the group company's three-year reform action assessment for four consecutive years, facilitating CNEC 23 and CNEC Huaxing to be rated as "Benchmark" in the SASAC's "Double Hundred Action" assessment for four consecutive years.

Deeply carrying out special governance of organizational structures. We released the "Standardized Guidance Plan for Headquarters Organizational Structures of Member Units," promoting organizational structure governance of member units with a "one enterprise, one policy" approach, and deeply carried out work on compressing multi-layer structures, multiple management levels, and reducing legal entities. We revised and released the "Term-Based and Contractual Management Measures" and completed the first-phase assessment, deepening the application of the three-system reform evaluation results.

Adhering to the pursuit of excellence, comprehensively improving management quality and efficiency. We fully implemented the group company's unified deployment for the "Year of Pursuing Excellence." Taking the introduction of the Excellence Performance Model as an opportunity, we continuously improved standardized management capabilities and levels, promoting the company's comprehensive construction into a world-class enterprise.

Focusing on resolving security risks in key areas. Focusing on asset-liability ratio, "two funds" (accounts receivable and inventory), and cash flow control, we continuously adopted more precise and effective measures such as assigned supervision, special oversight, and dynamic tracking. We normalized the special supervision of scientific decision-making and compliance risk prevention and control for overseas projects. We enhanced the foresight of audit risk identification and prevention, providing "precise mine clearance" for high-quality development.

Unifying Thought, Gathering Strength

Party Building Leading and Ensuring High-Quality Development

The leading force of Party building continues to strengthen. We conducted 23 study sessions and reading classes on the spirit of the Fourth Plenary Session of the 20th Central Committee and the in-depth implementation of the Central Committee's Eight-Point Regulations, with 6,532 participants. Party committees and leading members at all levels published 5 signed articles.

The combat effectiveness of Party building continues to improve. The company consolidated the "Three Basics" construction, implemented the "Four Synchronizations" and "Four Alignments," and systematically planned the three-year action to enhance the capabilities and quality of the Party affairs team. We built and improved the Party building brand matrix of "Party Building Red Leading Nuclear Construction Blue," deeply exploring grassroots pioneering experiences and cases of Party building integrating into the center.

The safeguarding force of Party building continues to solidify. We strengthened the cadre team, emphasizing selection, cultivation, management, and utilization. We optimized the standardized construction plan for the leadership teams of member units, selecting and appointing excellent and capable leaders at all levels. We improved the cadre training and cultivation system, continuously focusing on capacity building. Firmly establishing the concept that talent is the primary resource, we improved the full-lifecycle talent cultivation system and advanced special talent cultivation projects with high quality. In 2025, 3 employees were awarded the title of National Model Worker.

The influence of Party building continues to expand. We continuously improved the brand system, brand positioning, and brand connotation, forging a globally leading enterprise brand in the field of nuclear power construction. CNEC was rated as one of the first batch of excellent enterprise brands in CNNC's brand leading action, and CNEC Maintenance was rated as a second batch of excellent service brand.

Brand and cultural achievements are rich and diverse. We made our debut at the 25th China International Industry Fair, globally launching the CNEC corporate brand with significant impact. We participated in the formulation of ESG standards for the construction industry and case exchanges. We received the "Excellent Case" award in the China Enterprise Global Image Building for four consecutive years. The AIGC work "Colorful CNNC" won the Excellent Recommended Work award at the 11th "Good News of State-Owned Enterprises."

Upholding integrity and innovation, extensively carrying out thematic publicity. The 2025 Two Sessions series publicity featuring Shi Yancai was featured in major mainstream media such as People's Daily and Guangming Daily. We conducted in-depth publicity focusing on CNEC's 3 National Model Workers and 1 National Civilized Unit. We published special articles such as "Promoting Technological Innovation and Intelligent Construction Upgrade" and "Inheriting the Spiritual Legacy, Forging Major National Projects" in Liberation Daily.

The cohesive force of Party building continues to manifest. Focusing on issues of urgent concern and difficulty for employees, we deeply advanced "practical matters for the people." Matters such as children's enrollment in nearby schools were praised by employees. We carried out the selection of CNEC Craftsmen and CNEC Model Workers, building a distinctive talent echelon. We deepened and promoted the construction of "Happy CNEC," creating "Happy Project Departments."