CGN New Energy Holdings Co. Ltd. announced that on 18 September 2023 (after trading hours), CGN Daesan Power, a wholly owned subsidiary of the Company, as employer, entered into the Construction Contract with Hanwha Corporation, as contractor, pursuant to which CGN Daesan Power agreed to engage Hanwha Corporation to carry out the Construction Work. The Contract Price payable by CGN Daesan Power under the Construction Contract is approximately KRW 242.6 billion (equivalent to approximately USD 180 million) (subject to adjustments).

A summary of the principal terms of the Construction Contract is set out below: Date, 18 September 2023, Parties, (1) CGN Daesan Power (as employer), (2) Hanwha Corporation (as contractor), Subject matter: Hanwha Corporation shall be appointed as the contractor to carry out the Construction Work. The Scope of the Construction Work includes the construction, installation and testing of the CGN Power Plant, together with the operation of the construction site and any other place as set out in the Construction Contract. The CGN Power Plant, a combined cycle liquefied natural gas fired power plant to be constructed in Korea, will consist of a single unit with an estimated facility capacity of 512 MW.

The construction of the CGN Power Plant was undertaken in furtherance of the Group 's principal business and thus beneficial to the Group 's commercial interest in the long run. The Board considers Hanwha Corporation to be a proven contractor in the construction, installation and testing of power plants and that it possesses the necessary professional qualification and extensive experience in undertaking such work for CGN Daesan Power and is expected to be able to ensure the smooth implementation of the Construction Work. The Construction Contract was negotiated on an arm 's length basis and are on normal commercial terms. Based on the above, the Board is of the view that the terms of the Construction Contract are fair and reasonable and in the interests of the Company and the Shareholders as a whole.