Core Viewpoint - Longyuan Power's wind power project in Ukraine is operating well, with a cumulative safe production of 1,418 days as of June 30, 2025 [1] Group 1 - Longyuan Power responded to investor inquiries regarding its renewable energy investment projects in Ukraine [1] - The company indicated that it has not expanded its participation in the post-war reconstruction of Ukraine [1] - For details on overseas project operations and construction, the company referred to its periodic reports disclosed on the Shenzhen Stock Exchange [1]

Core Viewpoint - Longyuan Power has successfully implemented an offshore wind power comprehensive detection platform, which enhances operational efficiency and safety in offshore wind farms, significantly reducing operational costs and improving detection capabilities [1]. Group 1: Technology and Innovation - The offshore wind power comprehensive detection platform serves as a crucial infrastructure for safe and efficient operations in offshore wind power [1]. - The platform utilizes an innovative "unmanned surface vessel + underwater robot" model, equipped with high-precision detection devices and inertial navigation technology [1]. - It enables 360-degree "acoustic, optical, and electromagnetic integrated" scanning of submarine cables and foundation equipment, creating a three-dimensional model of the seabed terrain [1]. Group 2: Operational Efficiency - The platform has successfully reduced the time for locating cable faults from 22 days to 2-3 days, enhancing detection efficiency by over 10 times [1]. - The detection accuracy has reached ±0.1 meters, contributing to more effective monitoring and visibility of underwater equipment [1]. - The technology has been applied in various offshore wind projects, including those in Jiangsu Dafeng and Huan Gang, providing strong technical support for the development of offshore wind power in deeper waters [1].

Core Viewpoint - Longyuan Power's stock experienced a slight decline of 0.39% on October 21, with a trading volume of 74.48 million yuan, indicating a low level of financing and margin trading activity [1] Financing and Margin Trading - On October 21, Longyuan Power had a financing buy-in amount of 3.70 million yuan and a financing repayment of 3.25 million yuan, resulting in a net financing buy of 0.45 million yuan [1] - As of October 21, the total margin trading balance for Longyuan Power was 48.80 million yuan, with the financing balance at 48.52 million yuan, accounting for 0.05% of the circulating market value, which is below the 10th percentile level over the past year [1] - In terms of short selling, Longyuan Power repaid 3,600 shares and sold 800 shares on October 21, with a selling amount of 14,200 yuan based on the closing price [1] - The short selling balance was 28.24 million yuan, which is below the 30th percentile level over the past year, indicating a low level of short selling activity [1] Company Overview - Longyuan Power Group Co., Ltd. was established on January 27, 1993, and listed on January 24, 2022, with its main business involving technical transformation, services, and production maintenance related to power systems and electrical equipment [2] - The company's revenue composition shows that 99.22% comes from power products, while other income accounts for 0.78% [2] - For the first half of 2025, Longyuan Power reported a revenue of 15.66 billion yuan, a year-on-year decrease of 17.09%, and a net profit attributable to shareholders of 3.38 billion yuan, down 11.82% year-on-year [2] Dividend Distribution - Longyuan Power has cumulatively distributed dividends of 5.98 billion yuan since its A-share listing, with 4.75 billion yuan distributed over the past three years [3] Institutional Holdings - As of June 30, 2025, Longyuan Power had 41,000 shareholders, an increase of 1.18% from the previous period, with the average circulating shares per person remaining at zero [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited and several ETFs, with notable increases in holdings for various institutional investors [3]

Industry Overview - As of now, the newly installed wind power capacity in China exceeds 57.84 million kilowatts, with a cumulative installed capacity of 580 million kilowatts, accounting for 15.7% of the national power generation capacity [1] - The wind power installed capacity in China has ranked first in the world for 15 consecutive years and is entering a new era of annual new installations exceeding 10 million kilowatts [1] - In the first eight months of 2025, the national wind power installed capacity reached 58 GW, a year-on-year increase of 72%, with Q3 showing continued growth in both onshore and offshore wind deliveries [1] - From January to September 2025, onshore wind turbine bidding reached 79 GW, a year-on-year increase of 7%, while offshore wind bidding reached 8.3 GW, a year-on-year increase of 9% [1] - The 2025 Beijing International Wind Energy Conference and Exhibition, known as a "barometer" for China's wind power industry, opened on October 20, where the "Beijing Wind Energy Declaration 2.0" was released, aiming for an annual new installed capacity of no less than 12 million kilowatts during the 14th Five-Year Plan period [1] Company Insights - Longyuan Power (001289) is a listed company under the State Energy Group, rapidly developing its offshore wind power business with multiple large offshore wind farms in Jiangsu and Fujian [2] - Longyuan Power is expected to benefit from VAT tax refund policies, enhancing cash flow and overall performance, having won a bid for a 1 million kilowatt offshore wind power project in Jiangsu, a key project for 2025 [2] - Goldwind Technology (002202) is a leading player in the domestic wind power industry, heavily investing in offshore wind power technology research and product manufacturing [2] - The new policies are anticipated to further promote the offshore wind power market, providing a favorable market environment for Goldwind's offshore wind equipment sales, with projected revenue from self-owned wind farms reaching 10.8 billion RMB in 2024 [2] - In the first half of 2025, Goldwind's new signed orders in the offshore wind market reached 6 GW, and the company secured over 43% of the bidding volume in the 675 MW wind power project by Huadian in October 2025, showcasing its strong competitive edge [2] - Goldwind plans to invest 6 billion RMB in building a zero-carbon wind power industrial base in the Beibu Gulf, further enhancing its competitiveness in the offshore wind market [2] - Goldwind's cumulative delivery of wind power mixed towers has surpassed 3,000 units, serving over 240 wind power projects across 21 provinces, with a cumulative delivery capacity exceeding 15 GW [2]

Industry Overview - As of now, the newly installed wind power capacity in China exceeds 57.84 million kilowatts, with a cumulative installed capacity of 580 million kilowatts, accounting for 15.7% of the national power generation capacity [1] - The wind power installed capacity in China has ranked first in the world for 15 consecutive years, entering a new era of annual new installations exceeding 10 million kilowatts [1] - In the first eight months of 2025, the national wind power installed capacity reached 58 GW, a year-on-year increase of 72%, with Q3 showing continued growth in both onshore and offshore wind deliveries [1] - From January to September 2025, onshore wind turbine bidding reached 79 GW, a year-on-year increase of 7%, while offshore wind bidding reached 8.3 GW, a year-on-year increase of 9% [1] Event Highlights - The 2025 Beijing International Wind Energy Conference and Exhibition, regarded as a "barometer" for China's wind power industry, opened on October 20 [2] - During the opening ceremony, the "Beijing Wind Energy Declaration 2.0" was released, aiming to unify global consensus in the wind power industry, proposing an annual new installed capacity of no less than 12 million kilowatts during the 14th Five-Year Plan period, doubling the target set in 2020 [2] - According to SANY Renewable Energy's board secretary, the worst pricing situation for wind power has passed, and the industry's profitability is expected to significantly improve next year, although company performance may vary [2] Company Insights - Longyuan Power (00916), a subsidiary of the State Energy Group, is rapidly developing its offshore wind power business, with multiple large offshore wind farms in Jiangsu and Fujian. The company will benefit from VAT refunds under new policies, enhancing cash flow and overall performance [3] - Goldwind Technology (02202), a leading player in China's wind power industry, has made significant investments in offshore wind technology research and product manufacturing. The new policies are expected to further promote the offshore wind market, providing a favorable environment for sales [3] - Goldwind Technology anticipates revenue of 10.8 billion RMB from its own wind farms in 2024, with new orders in the offshore wind market reaching 6 GW in the first half of 2025. The company secured over 43% of the bidding volume in the 675 MW wind power project in October 2025, showcasing its strong competitive edge [3] - Goldwind Technology is also planning to invest 6 billion RMB to establish a zero-carbon wind power industrial base in the Beibu Gulf, further enhancing its competitiveness in the offshore wind market [3] - The cumulative delivery of Goldwind's mixed towers has surpassed 3,000 units, serving over 240 wind power projects across 21 provinces, with a total delivery capacity exceeding 15 GW [3]

Core Viewpoint - The Hong Kong wind power stocks experienced a general increase, driven by the opening of the 2025 Beijing International Wind Energy Conference, which aims to enhance global consensus in the wind power industry and set ambitious installation targets for the coming years [1][2]. Group 1: Market Performance - Wind power stocks in Hong Kong saw significant gains, with Goldwind Technology rising over 6%, Dongfang Electric increasing by 4.4%, China High-Speed Transmission up nearly 3%, Xintian Green Energy rising by 1.6%, and Longyuan Power gaining 0.39% [2]. Group 2: Industry Developments - The 2025 Beijing International Wind Energy Conference opened on October 20, where the "Beijing Wind Energy Declaration 2.0" was released, proposing an annual new installed capacity of no less than 120 million kilowatts during the 14th Five-Year Plan period, doubling the annual installation target set in 2020 [1]. - Industry insiders indicated that with the offshore wind power entering the bidding season, the profitability of the industry is expected to improve continuously, particularly as the third quarter marks the peak season for wind power project commencement, suggesting an acceleration in industry prosperity [1].

Group 1 - The Hong Kong wind power stocks have generally risen, with Goldwind Technology up over 6%, Dongfang Electric up 4.4%, China High-Speed Transmission up nearly 3%, Xintian Green Energy up 1.6%, and Longyuan Power also increasing [1][2] - The 2025 Beijing International Wind Energy Conference and Exhibition, regarded as a "barometer" for China's wind power industry, opened on October 20, where the "Wind Energy Beijing Declaration 2.0" was officially released [1] - The declaration aims to unify global consensus in the wind power industry, proposing an annual new installed capacity of no less than 120 million kilowatts during the 14th Five-Year Plan period, which is double the annual installation target set in 2020 [1] Group 2 - Industry insiders indicate that with the offshore wind power entering the bidding peak season, the profitability of the industry will continue to improve, especially as the third quarter sees a peak in wind power project commencements [1] - The industry is expected to enter a phase of accelerated prosperity, with performance improvements across the entire supply chain, including complete machines and components [1]

Group 1 - Longyuan Power's stock increased by 0.34% on October 20, with a trading volume of 96.19 million yuan [1] - The financing data for Longyuan Power on the same day showed a financing purchase amount of 3.41 million yuan and a financing repayment of 5.55 million yuan, resulting in a net financing outflow of 2.14 million yuan [1] - As of October 20, the total balance of margin trading for Longyuan Power was 48.40 million yuan, with the financing balance accounting for 0.05% of the circulating market value, indicating a low level compared to the past year [1] Group 2 - Longyuan Power Group Co., Ltd. was established on January 27, 1993, and listed on January 24, 2022, focusing on power system and electrical equipment technology transformation, service, and production maintenance [2] - The company's main business revenue composition is 99.22% from power products and 0.78% from other sources [2] - For the first half of 2025, Longyuan Power reported operating revenue of 15.66 billion yuan, a year-on-year decrease of 17.09%, and a net profit attributable to shareholders of 3.38 billion yuan, down 11.82% year-on-year [2] Group 3 - Longyuan Power has distributed a total of 5.98 billion yuan in dividends since its A-share listing, with 4.75 billion yuan distributed in the last three years [3] - As of June 30, 2025, the top ten circulating shareholders of Longyuan Power included Hong Kong Central Clearing Limited and several ETFs, with notable increases in holdings for some shareholders [3]

Core Insights - The article highlights the top and bottom AH share premium rates, with Northeast Electric (00042) leading at 918.87% and Ningde Times (03750) at -17.09% [1][2] Summary by Category Top AH Share Premium Rates - Northeast Electric (00042) has a premium rate of 918.87% with a deviation value of 109.61% [2] - Hongye Futures (03678) follows with a premium rate of 246.28% and a deviation value of 16.95% [2] - Zhejiang Shibao (01057) ranks third with a premium rate of 241.04% and a deviation value of 19.03% [2] Bottom AH Share Premium Rates - Ningde Times (03750) has the lowest premium rate at -17.09% with a deviation value of -2.80% [2] - Heng Rui Pharmaceutical (01276) has a premium rate of -1.38% and a deviation value of 1.69% [2] - China Merchants Bank (03968) has a premium rate of 0.51% with a deviation value of -4.32% [2] Top AH Share Deviation Values - Northeast Electric (00042) leads with a deviation value of 109.61% [2] - Changfei Optical Fiber (06869) has a deviation value of 31.51% [2] - Shandong Molong (00568) follows with a deviation value of 26.68% [2] Bottom AH Share Deviation Values - Shanghai Electric (02727) has the lowest deviation value at -25.42% [3] - China National Foreign Trade Transportation Group (00598) has a deviation value of -16.00% [3] - COSCO Shipping Energy Transportation (01138) has a deviation value of -14.18% [3]

Investment Rating - The report provides a "Buy" rating for several companies in the power and gas sectors, indicating a positive outlook for their performance [41]. Core Insights - The report highlights the recent adjustments in the value-added tax (VAT) policies for wind and nuclear power, which may impact profitability for operators in these sectors [9][10]. - It notes the competitive pricing results for electricity in Xinjiang and Gansu, with Xinjiang's prices nearing the upper limit of the bidding range, suggesting a favorable environment for renewable energy operators [8]. - The report discusses the decline in global LNG prices, with China's comprehensive LNG import price reaching a four-year low, which could benefit domestic gas companies [12][27]. Summary by Sections 1. Power Sector - Xinjiang's mechanism electricity bidding results show a scale of 36 billion kWh for solar and 185 billion kWh for wind, with prices at 0.235 CNY/kWh and 0.252 CNY/kWh respectively, indicating a competitive market [5][8]. - The VAT policy changes will eliminate the 50% VAT refund for onshore wind from November 1, 2025, while maintaining it for offshore wind until the end of 2027 [9][10]. - Recommendations include focusing on companies like Guodian Power, China Nuclear Power, and Longyuan Power due to their stable growth prospects [11]. 2. Gas Sector - Global gas prices have shown slight declines, with the US Henry Hub price at $2.82/mmBtu, reflecting a 2.90% weekly drop [12][15]. - China's LNG import price has dropped to 2852 CNY/ton, the lowest since mid-2021, driven by lower oil prices affecting long-term contracts [27][29]. - The report suggests a positive outlook for gas companies like Kunlun Energy and New Hope Energy, as cost reductions and economic recovery may enhance profitability [29]. 3. Environmental Sector - The report emphasizes the benefits of debt-for-equity swaps and the increasing stability of returns for green energy operators, recommending companies like China Everbright Environment and Hongcheng Environment [11]. - It highlights the ongoing rise in SAF (Sustainable Aviation Fuel) prices, suggesting investment opportunities in related companies [11]. 4. Key Company Valuations - The report includes a valuation table for key companies, with several rated as "Buy," indicating strong expected performance in the coming years [41].