[Company News] Fuan Shares Invests RMB 320 Million to Establish a Joint Venture, Paving the Way for a Gas Turbine Industry Base

　　On September 9, 2025, Liaoning Fuan Heavy Industry Co., Ltd. (stock code: 603315; short name: “Fuan Shares”) issued an announcement stating that its subsidiary, Liaoning Fuan Gas Turbine Co., Ltd. (short name: “Liaoning Gas Turbine”), together with Leshan High-tech Investment and Development (Group) Co., Ltd. (short name: “Leshan High-tech Investment”) and Leshan Characteristic and Advantage Equity Investment Fund Partnership (Limited Partnership) (short name: “Leshan Equity Fund”), plans to jointly invest in the establishment of Sichuan Fuan Gas Turbine Co., Ltd., with the aim of fully developing Leshan into a major gas turbine manufacturing base.

　　The newly established joint venture has a registered capital of RMB 620 million, with the respective contribution methods and equity stakes of the three parties already clearly defined. Specifically, Leshan High-tech Investment and the Leshan Equity Fund each contribute RMB 150 million in cash, each holding a 24.1935% stake; Liaoning Gas Turbine, on the other hand, contributes a total of RMB 320 million in a combination of in-kind assets, technology, and cash, thereby acquiring a 51.613% stake and becoming the joint venture’s largest shareholder. Subsequently, Leshan High-tech Investment and the Leshan Equity Fund may, in accordance with the joint venture’s development needs, increase their respective capital contributions on a pro rata basis.

　　According to the joint venture’s operational plan, its core business will focus on the R&D, manufacturing, and sales of gas turbines with capacities of 50 MW or less, and it will establish a component machining workshop, an assembly workshop, a complete-system integration workshop, and a full-load test platform. In addition, the joint venture will provide critical gas-turbine components, as well as installation, commissioning, and maintenance services, with the goal of organizing production and supplying gas-turbine products globally. At the corporate governance level, the joint venture’s board of directors will consist of five members, ensuring that each party can leverage its respective strengths in operations and management.

　　The establishment of this joint venture holds significant strategic importance for the future development of Liaoning Gas Turbine. From the perspective of industrial deployment and implementation, locating the joint venture in Leshan will enable it to fully leverage local advantages and the resources of its partners, thereby accelerating the construction of a gas-turbine industry base. This will facilitate the transition of core products with independent intellectual property rights—such as the 10 MW and 4 MW models—from technological achievements to industrial-scale production, and swiftly bridge the critical link between technology, production capacity, and market access.

　　From a long-term development perspective, through deep collaboration with local state-owned assets and funds in Leshan, the company can efficiently leverage the strengths of multiple stakeholders—drawing on their proven expertise in industrial operations, their capabilities in capital integration and resource allocation, and their robust R&D pipelines for technological innovation—to further optimize the gas-turbine industry value chain and enhance the market competitiveness of its core products.

　　From the perspective of strategic synergy, this investment is perfectly aligned with the company’s long-term development plan: on the one hand, it will accelerate the industrialization of gas turbines and enable the company to capitalize on the new wave of growth opportunities in the gas-turbine industry; on the other hand, it will inject strong momentum into the company’s continued deep cultivation in the high-end equipment-manufacturing sector, thereby laying a solid foundation for sustainable development.