Stock Abbreviation: Longyuan Power
Stock Code: 001289
China Longyuan Power Group Corporation Limited
2025 Prospectus for Issuance of A-Shares to Specific Targets
(Registration Draft)
Sponsor (Lead Underwriter)
CITIC Securities Company Limited
North Tower, Excellence Times Plaza (Phase II), No. 8 Central Third Road, Futian District, Shenzhen, Guangdong Province
July 2026
Declaration
The Company and all directors and senior management warrant that the contents of this prospectus are true, accurate, and complete, free from false records, misleading statements, or major omissions. They undertake to fulfill their commitments in accordance with the principle of good faith and assume corresponding legal liabilities.
The controlling shareholder of the Company warrants that the contents of this prospectus are true, accurate, and complete, free from false records, misleading statements, or major omissions. They undertake to fulfill their commitments in accordance with the principle of good faith and assume corresponding legal liabilities.
The person in charge of the Company, the person in charge of accounting work, and the person in charge of the accounting institution guarantee that the financial and accounting information in this prospectus is true and complete.
Any decision or opinion made by the China Securities Regulatory Commission or the Shenzhen Stock Exchange regarding this issuance does not imply their guarantee of the authenticity, accuracy, or completeness of the application documents and disclosed information, nor does it constitute a substantive judgment or guarantee of the issuer's profitability, investment value, or investor returns. Any statement to the contrary is a false and untrue representation.
In accordance with the Securities Law, after the securities are issued according to law, the issuer is solely responsible for changes in its operations and earnings. Investors shall independently judge the investment value of the issuer, make their own investment decisions, and bear the investment risks arising from changes in the issuer's operations and earnings or fluctuations in securities prices after the issuance.
Important Notice
The Company requests that investors carefully read the full text of this prospectus before making investment decisions, and specifically draws attention to the following summary of risk factors. For detailed information, please read "Section VI: Risk Factors Related to This Issuance" of this prospectus.
I. Risk of Electricity Price Volatility Due to Market-Oriented Trading
In January 2025, the National Development and Reform Commission and the National Energy Administration jointly issued the "Notice on Deepening the Market-Oriented Reform of On-Grid Electricity Prices for New Energy and Promoting High-Quality Development of New Energy" (Document No. 136), which clarifies that all new energy on-grid electricity will enter the power market. Electricity prices will be formed through market transactions, and a sustainable development price settlement mechanism will be established. Document No. 136 sets June 1, 2025, as a milestone, implementing a mechanism for price linkage with current policies for existing projects (commissioned before June 1, 2025), and linking guaranteed electricity volume with coal-fired power benchmark prices. Incremental projects (commissioned after June 1, 2025) will determine mechanism electricity prices through market-oriented bidding, with scale dynamically matched to consumption responsibility weights. Simultaneously, a "make up for the deficiency or refund the surplus" settlement mechanism will be established, with the difference between the market transaction average price and the mechanism price included in system operating costs to stabilize corporate earnings expectations. This reform marks the transition of new energy from "policy-driven" to "market-driven," guiding resource optimization through price signals and restructuring the power market supply-demand landscape to help achieve "dual carbon" goals.
Following the release of Document No. 136 and the implementation of related supporting policies and plans, new energy on-grid electricity will gradually enter the power market in full and have prices formed through market transactions. In the short term, this may lead to fluctuations in the Company's average on-grid electricity price, thereby creating risks of volatility in the Company's revenue and performance.