Group 1 - On January 9, 2026, Alibaba-W (09988), Goldwind Technology (02208), and SMIC (00981) were the top three companies by trading volume in the Southbound Stock Connect, with transaction amounts of 6.569 billion, 3.307 billion, and 2.174 billion respectively [1] - In the Southbound Stock Connect for the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), Tencent Holdings (00700), and SMIC (00981) also ranked as the top three, with transaction amounts of 3.420 billion, 2.095 billion, and 1.749 billion respectively [1] Group 2 - The top active companies in the Southbound Stock Connect included Alibaba-W (09988) with a net buy amount of -2.114 billion, Goldwind Technology (02208) with -0.130 billion, and SMIC (00981) with -0.174 billion [2] - In the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988) had a net buy amount of -0.508 billion, Tencent Holdings (00700) had +0.529 billion, and SMIC (00981) had +0.866 billion [2]

Group 1 - The Hong Kong stock market saw a net inflow of 68.15 billion HKD from northbound trading, with 16.6 billion HKD from Shanghai and 51.55 billion HKD from Shenzhen [1] - The most bought stocks included Tencent (00700), Xiaomi Group-W (01810), and Kuaishou-W (01024), while the most sold stocks were Alibaba-W (09988), China Mobile (00941), and Goldwind Technology (02208) [1][2] Group 2 - Alibaba-W (09988) had a net outflow of 26.21 billion HKD, with a total trading volume of 65.69 billion HKD, indicating significant selling pressure [2][7] - Tencent (00700) received a net inflow of 14.11 billion HKD, supported by a report from Morgan Stanley highlighting its AI strategy and high potential for monetization [4][5] - Xiaomi Group-W (01810) attracted a net inflow of 8.69 billion HKD, with plans for 200 billion HKD in R&D investment over the next five years [5] - Kuaishou-W (01024) saw a net inflow of 7.76 billion HKD, driven by strong performance in AI-generated content [5] - Semiconductor company SMIC (00981) had a net inflow of 6.92 billion HKD, following a strategic acquisition that is expected to positively impact earnings [6] - Goldwind Technology (02208) faced a net outflow of 1.94 billion HKD, despite potential positive catalysts from its stake in Blue Arrow Aerospace [7]

Group 1 - The core viewpoint of the report highlights that China National Offshore Oil Corporation (CNOOC) benefits from strong production growth and effective cost control, demonstrating resilience during periods of declining oil prices [1] - The company is expected to balance its oil and gas operations with new energy initiatives, contributing to the construction of a maritime power [1] - The profit forecast for CNOOC remains unchanged, with projected net profits attributable to shareholders for 2025, 2026, and 2027 estimated at 135.4 billion, 139.8 billion, and 144.3 billion yuan respectively, translating to EPS of 2.85, 2.94, and 3.04 yuan per share [1] Group 2 - The brokerage maintains a "Buy" rating for CNOOC's A-shares and initiates coverage on its H-shares with a "Buy" rating as well [1]

Summary of Key Points Core Viewpoint The recent disclosures from several major energy state-owned enterprises in China regarding the 2024 annual compensation of their executives reveal significant salary figures, reflecting the financial health and strategic priorities of these companies in the energy sector. Group 1: China National Petroleum Corporation (CNPC) - The chairman, Dai Houliang, received a pre-tax salary of 97.85 million RMB, with additional benefits totaling 26.36 million RMB [2] - Other executives, such as Duan Liangwei and Zhou Song, received pre-tax salaries of 85.13 million RMB, with similar additional benefits [2] - The total compensation for various executives includes social insurance, enterprise annuities, and supplementary medical insurance [2] Group 2: China Petroleum and Chemical Corporation (Sinopec) - Chairman Ma Qiansheng's pre-tax salary is reported at 93.55 million RMB, with additional benefits of 23.76 million RMB [3] - Other executives, including Zhang Shaofeng and Li Yonglin, received pre-tax salaries around 83 million RMB, with additional benefits in the range of 23 million RMB [3] - The compensation structure includes social insurance and other monetary income [3] Group 3: China National Offshore Oil Corporation (CNOOC) - Chairman Wang Dongjin's pre-tax salary is 96.69 million RMB, with additional benefits of 26.48 million RMB [5] - Other executives, such as Zhou Xinhai and Wang Rujia, received salaries between 80 million and 86 million RMB, with corresponding benefits [5] - The compensation details include social insurance and housing fund contributions [5] Group 4: China National Petroleum and Natural Gas Pipeline Group - Chairman Rong Wei's pre-tax salary is 87.29 million RMB, with additional benefits of 23.51 million RMB [7] - Other executives received salaries ranging from 6.55 million to 80.02 million RMB, with similar benefits [7] - The compensation includes social insurance and other monetary income [7] Group 5: China Huadian Corporation - Chairman Jiang Yi's pre-tax salary is reported at 96.11 million RMB, with additional benefits of 31.04 million RMB [12] - Other executives, including Ye Xiangdong and Zu Bin, received salaries around 86 million RMB, with substantial additional benefits [12] - The compensation structure includes social insurance and other monetary income [12] Group 6: China Huaneng Group - Chairman Wen Shugang's pre-tax salary is 96.17 million RMB, with additional benefits of 27 million RMB [9] - Other executives received salaries ranging from 40 million to 89 million RMB, with corresponding benefits [9] - The compensation includes social insurance and other monetary income [9] Group 7: China Datang Corporation - Chairman Zhong Yong's pre-tax salary is 92.21 million RMB, with additional benefits of 28.32 million RMB [11] - Other executives received salaries ranging from 6.9 million to 82.99 million RMB, with similar benefits [11] - The compensation structure includes social insurance and other monetary income [11] Group 8: China Longyuan Power Group - Chairman Liu Weiping's pre-tax salary is 61.15 million RMB, with additional benefits of 18.07 million RMB [15] - Other executives received salaries ranging from 45 million to 82 million RMB, with corresponding benefits [15] - The compensation includes social insurance and other monetary income [15] Group 9: Harbin Electric Corporation - Chairman Cao Zhishou's pre-tax salary is 79.11 million RMB, with additional benefits of 20.04 million RMB [17] - Other executives received salaries ranging from 17.80 million to 79.11 million RMB, with similar benefits [17] - The compensation structure includes social insurance and other monetary income [17]

Core Viewpoint - The article discusses the 2024 annual salary disclosures of executives from several major energy state-owned enterprises in China, highlighting the pre-tax remuneration and additional benefits for key personnel. Group 1: China National Petroleum Corporation (CNPC) - The chairman, Ma Yongsheng, has a pre-tax salary of 935,500 RMB, with additional social insurance and pension contributions totaling 237,600 RMB [3] - Other executives, such as Da Dong and Zhong Ren, also have salaries around 935,500 RMB and 842,000 RMB respectively, with similar additional benefits [3] Group 2: China Petroleum and Chemical Corporation (Sinopec) - Chairman Wang Dongjin's pre-tax salary is 966,900 RMB, with social insurance contributions of 264,800 RMB [5] - Other executives, including Zhou Xinhai and Wang Dehua, have salaries ranging from 289,200 RMB to 867,800 RMB, with similar additional benefits [5] Group 3: China National Offshore Oil Corporation (CNOOC) - Chairman Wang Dongjin earns 966,900 RMB, with social insurance contributions of 264,800 RMB [5] - Other executives have salaries from 14,510 RMB to 867,800 RMB, with additional benefits [5] Group 4: China Huaneng Group - Chairman Wen Shugang's pre-tax salary is 961,700 RMB, with social insurance contributions of 270,000 RMB [9] - Other executives, such as Zhang Wenfeng and Deng Jianling, have salaries ranging from 400,700 RMB to 860,000 RMB [9] Group 5: China Datang Corporation - Chairman Ren Jian's pre-tax salary is 922,100 RMB, with social insurance contributions of 283,200 RMB [11] - Other executives have salaries from 7,680 RMB to 824,900 RMB, with similar additional benefits [11] Group 6: China Huadian Corporation - Chairman Jiang Yi's pre-tax salary is 961,100 RMB, with social insurance contributions of 310,400 RMB [13] - Other executives have salaries ranging from 43,260 RMB to 865,000 RMB, with additional benefits [13] Group 7: China Longyuan Power Group - Chairman Liu Ming's pre-tax salary is 885,700 RMB, with social insurance contributions of 237,000 RMB [14] - Other executives have salaries from 7,250 RMB to 860,000 RMB, with similar additional benefits [14] Group 8: China Energy Investment Corporation - Chairman Yu Bing's pre-tax salary is 953,700 RMB, with social insurance contributions of 292,000 RMB [17] - Other executives have salaries ranging from 42,650 RMB to 850,000 RMB, with additional benefits [17] Group 9: China National Coal Group - Chairman Wang Shudong's pre-tax salary is 910,200 RMB, with social insurance contributions of 287,300 RMB [23] - Other executives have salaries from 15,170 RMB to 819,200 RMB, with similar additional benefits [23]

Group 1 - Oil stocks rose in early trading, with Shanghai Petrochemical (00338) up 4.29% at HKD 1.46, CNOOC (00883) up 1.74% at HKD 21.04, PetroChina (00857) up 1.38% at HKD 8.08, CNOOC Services (601808) (02883) up 0.82% at HKD 7.38, and Sinopec (00386) up 0.43% at HKD 4.69 [1] - International oil prices rebounded on Thursday after two days of decline, with Brent crude oil rising by as much as 5%, reaching a two-week high [1] - A tanker heading to Russia was attacked by a drone in the Black Sea, and Iraq is moving towards nationalization of the West Qurna 2 oil field due to US sanctions on Russia's Lukoil [1] Group 2 - Iran is facing nationwide protests due to economic difficulties and has implemented internet restrictions [1] - On January 8, the State Council approved the restructuring of China National Petroleum Corporation (601857) and China Aviation Oil Group [1] - According to Everbright Securities, the merger between Sinopec Group (600028) and China Aviation Oil Group will enhance Sinopec's competitiveness in the refined oil business by integrating the entire industrial chain of aviation fuel production, sales, and refueling [1]

Core Viewpoint - Oil stocks experienced an upward trend in early trading, driven by a rebound in international oil prices following two days of decline, with Brent crude oil reaching a two-week high [1] Group 1: Stock Performance - Shanghai Petrochemical Co. (00338) rose by 4.29% to HKD 1.46 [1] - CNOOC (00883) increased by 1.74% to HKD 21.04 [1] - PetroChina (00857) gained 1.38% to HKD 8.08 [1] - CNOOC Services (02883) saw a rise of 0.82% to HKD 7.38 [1] - Sinopec (00386) climbed 0.43% to HKD 4.69 [1] Group 2: Market Influences - International oil prices rebounded, with Brent crude oil experiencing a peak increase of 5% [1] - A drone attack on an oil tanker heading to Russia in the Black Sea contributed to market volatility [1] - Iraq is advancing the nationalization of the West Qurna 2 oil field due to U.S. sanctions on Russia's Lukoil [1] - Iran is facing nationwide protests due to economic difficulties, leading to an internet blackout [1] Group 3: Corporate Developments - On January 8, the restructuring of China Petroleum & Chemical Corporation and China Aviation Oil Group was approved by the State Council [1] - According to Everbright Securities, this merger will enhance the competitiveness of China Petrochemical Group's refined oil business by integrating the entire industrial chain of aviation fuel production, sales, and refueling [1] - Listed companies under China Petrochemical Group are expected to benefit from the integrated advantages of the entire industrial chain [1]

Core Viewpoint - China National Offshore Oil Corporation (CNOOC) is positioned as a leader in marine energy development, focusing on enhancing oil and gas reserves, technological innovation, and transitioning to new energy systems to support the construction of a marine power nation [1][2]. Group 1: Performance and Financials - CNOOC's performance in 2023 has significantly exceeded historical oil price levels, demonstrating resilience during periods of declining oil prices [1]. - The company's free cash flow has improved markedly, exceeding 100 billion yuan from 2022 to 2023, with interest-bearing debt ratio decreasing from 17% in 2021 to 6% in the first half of 2025 [1]. - CNOOC plans to maintain a dividend payout ratio of no less than 45% from 2025 to 2027, translating strong performance and cash flow into investor returns [1]. Group 2: Production and Cost Efficiency - CNOOC's oil and gas production is projected to grow rapidly, with a compound annual growth rate (CAGR) of 8.0% for crude oil and 10.5% for natural gas from 2021 to 2024 [2]. - The company's major cost per barrel of oil equivalent is $27.35, a 2.8% year-on-year decrease, which is significantly lower than competitors in both domestic and international markets [2]. Group 3: Energy Transition and ESG - CNOOC is actively pursuing energy transition by developing renewable energy resources and enhancing its ESG governance framework [2]. - The company aims to replace 760 million kilowatt-hours with green electricity by 2024 and expects to consume over 1 billion kilowatt-hours of green electricity in 2025, marking a 30% year-on-year increase [2]. - CNOOC is exploring industrialization paths for offshore CCS/CCUS and is establishing two offshore CCUS bases in Bohai and Hainan [2]. Group 4: Investment Outlook - CNOOC is expected to maintain strong performance due to its production growth and cost control, with projected net profits of 135.4 billion, 139.8 billion, and 144.3 billion yuan for 2025-2027, translating to earnings per share (EPS) of 2.85, 2.94, and 3.04 yuan respectively [3]. - The company maintains a "buy" rating for its A-shares and initiates coverage with a "buy" rating for its H-shares [3].

Group 1 - The core viewpoint of the article highlights that southbound funds have increased their holdings in China National Offshore Oil Corporation (CNOOC) by 1.82 million shares on January 8, with a total net increase of 35.2 million shares over the past five trading days [1] - Over the last 20 trading days, southbound funds have reduced their holdings in CNOOC on 10 occasions, resulting in a cumulative net reduction of 7.25 million shares [1] - As of now, southbound funds hold 10.246 billion shares of CNOOC, accounting for 21.55% of the company's total issued ordinary shares [1] Group 2 - CNOOC is primarily engaged in the exploration, development, production, and sales of crude oil and natural gas [1] - The company operates through three segments: exploration and production, trading, and business segment, which includes headquarters management, financial management, and research and development [1] - CNOOC conducts its business in both domestic and international markets [1]

Investment Rating - The report maintains a "Buy" rating for the company's A-shares and initiates coverage with a "Buy" rating for its H-shares [6]. Core Insights - The company is positioned as a leader in marine energy development, contributing significantly to the construction of a maritime power. It has established a comprehensive marine energy development system, including conventional oil and gas, deepwater oil and gas, LNG, and offshore wind power [1][25]. - The company's financial performance has shown resilience during oil price downturns, with significant improvements in free cash flow and a commitment to high dividend payouts, enhancing its investment value [2][4]. - The company has achieved rapid growth in oil and gas production, with a cost advantage that remains solid. Future production growth is expected to stabilize, with a focus on both oil and gas [3][66]. Summary by Sections Marine Energy Development - The company is recognized as a national team in marine energy, actively participating in the construction of a maritime power as part of national strategy [1][16]. - The company aims to enhance energy self-sufficiency and has implemented a "seven-year action plan" for domestic oil and gas production [27]. Financial Performance - The company has demonstrated strong cash flow performance, with free cash flow exceeding 100 billion yuan from 2022 to 2023 and a significant reduction in interest-bearing debt ratio from 17% in 2021 to 6% in the first half of 2025 [2][42]. - The projected net profits for 2025-2027 are 1354 billion, 1398 billion, and 1443 billion yuan, respectively, with corresponding EPS of 2.85, 2.94, and 3.04 yuan per share [4][5]. Production and Cost Efficiency - The company has achieved a compound annual growth rate (CAGR) of 8.0% for crude oil production and 10.5% for natural gas from 2021 to 2024, with future production targets indicating stable growth [3][66]. - The company's main cost per barrel is projected to be 27.35 USD, showcasing a competitive edge compared to domestic and international peers [3][66]. ESG and Green Energy Initiatives - The company is actively pursuing green energy projects, including offshore wind power and carbon capture and storage (CCUS), while maintaining a strong ESG governance framework [3][30]. - The company has committed to a high dividend payout ratio of no less than 45% from 2025 to 2027, reflecting its focus on returning value to shareholders [4][49].