Summary of Key Points from the Conference Call Industry Overview - The hydrogen energy industry is focused on several key segments including hydrogen production, storage, transportation, refueling, and utilization, with a significant emphasis on renewable energy hydrogen production as per the national development plan [2][10]. Core Insights and Arguments - Electrolytic water hydrogen production is identified as the key technological route for future hydrogen energy development, supported by national policies that favor renewable energy over fossil fuel hydrogen production [1][2]. - The cost of hydrogen production is heavily influenced by electricity prices; a reduction in electricity costs from 0.3 CNY/kWh to 0.1 CNY/kWh can lower hydrogen production costs from 22.8 CNY/kg to approximately 11 CNY/kg, enhancing economic viability [1][4]. - China Energy Construction (中国能建) plans to procure approximately 125 electrolyzers in 2025, consisting of 110 alkaline electrolyzers and 15 PEM electrolyzers, indicating a competitive market with declining prices for both types of electrolyzers [1][5]. Market Dynamics - Alkaline electrolyzers currently dominate the market with over 98% share due to their maturity and cost advantages, while PEM electrolyzers are expected to gain market share as technology advances [3][8]. - The domestic electrolyzer market is characterized by numerous participants and an unstable competitive landscape, with a growing focus on operational data and historical project experience by owners [3][9]. - In the first three quarters of 2025, domestic hydrogen equipment orders reached 4.1 GW, significantly surpassing the total from the previous two years, indicating a shift from megawatt to gigawatt scale projects [1][7]. Key Players and Competitive Landscape - Notable companies consistently appearing on the supplier shortlist for China Energy Construction include Beijing Electric Power Equipment General Factory, Tianhe Yuanqing, and Sunshine Hydrogen for alkaline electrolyzers, and Sunshine Hydrogen and Changchun Green Dynamics for PEM electrolyzers, reflecting their leading technical capabilities and experience [6][9]. - The competitive landscape is evolving with new entrants, and the focus is shifting towards reliable operational metrics such as lifespan and stability, making historical project experience a critical factor for selection [9]. Future Trends and Policy Support - The national policy framework is expected to continue supporting the hydrogen industry significantly over the next five years, with initiatives aimed at fostering new growth points, including green fuels, and promoting infrastructure development through subsidies [10]. - The anticipated effects of domestic substitution and economies of scale are expected to drive down costs across the entire industry chain, presenting further growth opportunities [10].

Group 1 - General Secretary Xi Jinping emphasized the importance of central enterprises in serving the Party and the country's work, promoting high-quality economic and social development, and contributing to the modernization of China [1][2] - Central enterprises are encouraged to focus on their main responsibilities and continuously optimize the layout of state-owned economy to enhance core functions and competitiveness [2][3] - The State-owned Assets Supervision and Administration Commission (SASAC) plans to implement the "14th Five-Year Plan" for central enterprises, aiming for a comprehensive optimization of the state-owned economy [2] Group 2 - Companies like China Southern Power Grid and China Huaneng Group are committed to fulfilling their economic, political, and social responsibilities while ensuring energy supply and supporting national energy security [2][3] - China Railway Engineering Corporation is focused on integrating into national strategies and promoting the transformation and upgrading of the construction industry [3] - The aviation and energy sectors, represented by China Aviation Industry Corporation and China Dongfang Electric Corporation, are prioritizing technological innovation and deep integration of technology and industry [4] Group 3 - The need for further reform and improvement of the modern enterprise system with Chinese characteristics is highlighted, aiming to build world-class enterprises [6][7] - China Energy Construction Group is focusing on reform to stimulate corporate vitality and enhance operational efficiency [6] - China Changan Automobile Group is committed to transforming into a smart low-carbon travel technology company, aiming for global competitiveness [7]

Core Viewpoint - The central economic work conference in December 2025 emphasizes the need to "promote investment stabilization" in 2026, leading to an optimistic outlook on fiscal policy for the upcoming year, particularly in infrastructure investment, which is expected to grow by 4.5% in 2026 [1][3][18]. Fiscal Policy Outlook - The fiscal measures for 2026 are anticipated to be more proactive, with a focus on stabilizing investment and stimulating private sector investment [3][4]. - The trend of "central government increasing leverage while local governments reduce leverage" is expected to continue, with the central government taking a more significant role in driving investment due to limited local government borrowing capacity [4][18]. Infrastructure Investment - Infrastructure investment is projected to be a crucial growth stabilizer in 2026, with a forecasted growth rate of 4.5% [18]. - The central government is expected to play a vital role in supporting infrastructure investment, particularly in the western regions, where there is significant potential for growth [18][32]. Construction Sector Insights - The construction state-owned enterprises (SOEs) are expected to benefit from debt reduction initiatives, leading to improved asset quality and valuation recovery [2][22]. - The share of receivables in total assets for major construction SOEs has been rising, indicating a need for financial improvement and valuation recovery as local government funding stabilizes [22][26]. Regional Investment Opportunities - The western provinces, particularly Sichuan, are highlighted as having high potential for infrastructure investment due to favorable central government funding and strategic positioning [32][39]. - The central transfer payment to western provinces is projected to be 4 trillion yuan, accounting for 42.2% of total central transfer payments, indicating strong financial support for infrastructure projects [32][36]. Manufacturing Sector Outlook - Manufacturing investment is expected to stabilize with a growth rate of around 5% in 2026, driven by a recovery in semiconductor capital expenditures [14][46]. - The cleanroom engineering sector is anticipated to benefit significantly from the upturn in semiconductor investments [46]. International Market Growth - The overseas market is projected to become a second growth curve for construction companies, with expectations of continued growth in new contracts and revenue from international projects [2][18].

Core Viewpoint - The article emphasizes optimism regarding fiscal policy in 2026, particularly in infrastructure investment as a means to stabilize economic growth amid a challenging real estate market [2][4][5]. Fiscal Policy Outlook - The 2026 fiscal policy is expected to be more proactive, with a focus on stabilizing investment and stimulating private sector activity [4][5]. - Central government investment is anticipated to increase, while local governments will continue to reduce leverage due to rising debt risks [5]. Infrastructure Investment - Infrastructure investment is projected to grow at a rate of 4.5% in 2026, driven by ongoing support from central fiscal measures [2][15]. - The central government is expected to play a significant role in funding infrastructure projects, particularly in the western regions of China [27][28]. Regional Investment Opportunities - The western provinces, especially Sichuan, are highlighted as having high potential for infrastructure investment due to favorable central government support and strategic positioning [3][27][34]. - Sichuan's transportation investment is leading nationally, with a compound annual growth rate of 4.9% from 2020 to 2024, indicating strong growth prospects [32]. Manufacturing Sector Insights - Manufacturing investment is expected to stabilize with a growth rate of around 5% in 2026, benefiting from a potential recovery in semiconductor capital expenditures [3][12]. - The cleanroom engineering sector is identified as a key beneficiary of increased capital spending in high-end manufacturing [3]. International Engineering Opportunities - The overseas market is anticipated to become a second growth curve for construction companies, with significant growth in new contracts and revenue from foreign projects since 2025 [3][12]. Debt Management and Corporate Valuation - The ongoing debt management efforts are expected to improve the asset quality and valuation of state-owned construction enterprises, which have seen a decline in price-to-book ratios due to rising receivables [2][16]. - The average funding cost for major construction enterprises is around 4%, with some companies achieving lower rates through bond issuance [22][23]. Construction Sector Dynamics - The construction sector is experiencing a shift towards higher market concentration, with leading companies increasing their market share significantly in recent years [22][23]. - The article notes that the average market share of major construction enterprises has risen to 22.9% in revenue terms and 48.9% in order terms [22][23].

Group 1 - General Secretary Xi Jinping emphasized the importance of central enterprises in serving the Party and the country's work, contributing to high-quality economic and social development, and fulfilling social responsibilities for the modernization of China [1] - Central enterprises are urged to focus on their main responsibilities and continuously optimize the layout of state-owned economy to enhance core functions and competitiveness [2] - China Southern Power Grid is committed to fulfilling economic, political, and social responsibilities while ensuring electricity supply for over 270 million people [2] - China Huaneng Group aims to maintain energy security and innovate in energy technology to better support the modernization process [2] - China Railway Engineering Group is focused on integrating into national strategies and promoting the transformation and upgrading of the construction industry [3] Group 2 - Xi Jinping called for strengthening key core technology research and promoting deep integration of technological and industrial innovation [4] - China Aviation Industry Corporation is focusing on independent innovation and advanced manufacturing to enhance capabilities and stabilize growth [4] - China Baowu Steel Group has achieved significant milestones in low-carbon products and aims to strengthen its steel business while integrating technology and industry [4] Group 3 - Xi Jinping highlighted the need for further reform to establish a modern enterprise system and improve corporate governance structures to build world-class enterprises [5] - China Energy Construction Group is committed to deepening reforms to enhance corporate vitality and improve management efficiency [6] - China CRRC Corporation is accelerating the application of new high-speed train technologies to enhance its global competitiveness [6] - China Changan Automobile is focused on transforming into a smart low-carbon mobility technology company while adhering to the Party's directives [6] Group 4 - The China Enterprise Confederation is working to optimize evaluation indicators and expand the range of evaluated enterprises to support central enterprises in building world-class status [7]

Core Viewpoint - China Energy Engineering Corporation (CEEC) shows stable trading activity with a financing balance that is relatively high compared to historical levels, indicating investor interest despite a slight decline in net profit year-on-year [1][2]. Group 1: Financial Performance - For the period from January to September 2025, CEEC achieved a revenue of 323.54 billion yuan, representing a year-on-year growth of 9.62% [2]. - The net profit attributable to shareholders was 3.16 billion yuan, which reflects a year-on-year decrease of 12.43% [2]. Group 2: Shareholder and Financing Information - As of December 23, CEEC's total financing balance was 13.13 billion yuan, accounting for 1.70% of its market capitalization, which is above the 60th percentile of the past year [1]. - The company has a cumulative cash distribution of 4.69 billion yuan since its A-share listing, with 3.75 billion yuan distributed in the last three years [3]. - The number of shareholders increased to 473,000, up by 41.21% compared to the previous period [2]. Group 3: Business Segments - CEEC's main business segments include engineering construction (81.18% of revenue), industrial manufacturing (7.42%), investment operations (6.80%), surveying and consulting (4.07%), and other businesses (0.53%) [2].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA ENERGY ENGINEERING CORPORATION LIMITED* （在中華人民共和國註冊成立的股份有限公司） （股份代號：3996） 海外監管公告 本公告乃由中國能源建設股份有限公司（「本公司」）根據香港聯合交易所有限公司證券上 市規則第13.10B條作出。 茲載列本公司於上海證券交易所網站刊發的《中國能源建設股份有限公司股東會議事規 則》，僅供參閱。 承董事會命 中國能源建設股份有限公司 董事長 倪真 中國，北京 2025年12月23日 於本公告日期，本公司執行董事為倪真先生；職工董事為黃埔先生；非執行董事為劉學 詩先生及司欣波先生；及獨立非執行董事為程念高先生、魏偉峰博士、牛向春女士及裴 振江先生。 * 僅供識別 中国能源建设股份有限公司 股东会议事规则 （2025 年 12 月修订） 第一章 总则 第一条 为维护中国能源建设股份有限公司（以下简称 公司）、股东、职工和债权 ...

（在中華人民共和國註冊成立的股份有限公司） （股份代號：3996） 海外監管公告 本公告乃由中國能源建設股份有限公司（「本公司」）根據香港聯合交易所有限公司證券上 市規則第13.10B條作出。 茲載列本公司於上海證券交易所網站刊發的《中國能源建設股份有限公司董事會議事規 則》，僅供參閱。 承董事會命 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA ENERGY ENGINEERING CORPORATION LIMITED* 中國能源建設股份有限公司 董事長 倪真 中國，北京 2025年12月23日 於本公告日期，本公司執行董事為倪真先生；職工董事為黃埔先生；非執行董事為劉學 詩先生及司欣波先生；及獨立非執行董事為程念高先生、魏偉峰博士、牛向春女士及裴 振江先生。 * 僅供識別 中国能源建设股份有限公司 董事会议事规则 （2025 年 12 月修订） 第一章 总则 第一条 为进一步规范中国能源建设股份有限公司（以下 简称公司）董事会议事方 ...

Core Insights - The "Qing Hydrogen No. 1" project, the world's largest integrated green hydrogen and ammonia project, has officially commenced production, marking a significant step in China's energy transition and decarbonization efforts [1] - China Energy Engineering Group (China Energy) is focusing on deepening reforms and enhancing productivity through innovation and optimization of business layouts, aiming to become a leader in energy revolution and water resource security [1][2] - The company has achieved substantial revenue growth in its core energy and water sectors, with a year-on-year increase of 16.76% in revenue and 18.42% in total profit for the first three quarters of 2025 [3] Group 1 - The "Qing Hydrogen No. 1" project is transforming abundant wind and solar resources into green hydrogen energy, contributing to global energy transition [1] - China Energy's strategic focus includes integrating energy with transportation, construction, and digital industries to foster high-quality development [2] - The company has established a comprehensive industrial layout, optimizing resource allocation across its core responsibilities in energy and water [2] Group 2 - China Energy's investment in traditional industries is driving intelligent, green, and integrated transformation, exemplified by major projects like the Longdong carbon capture demonstration and the Dashi Gorge water conservancy project [3] - The company prioritizes technological innovation, with significant investments in R&D, aiming for a budget of 14.6 billion yuan in 2024, nearly double that of 2020 [4] - China Energy is recognized as a key player in national strategic technology, with multiple projects and enterprises selected for government innovation and demonstration programs [5]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 承董事會命 中國能源建設股份有限公司 CHINA ENERGY ENGINEERING CORPORATION LIMITED* （在中華人民共和國註冊成立的股份有限公司） （股份代號：3996） 海外監管公告 本公告乃由中國能源建設股份有限公司（「本公司」）根據香港聯合交易所有限公司證券上 市規則第13.10B條作出。 茲載列本公司於上海證券交易所網站刊發的《北京德恒律師事務所關於中國能源建設股份 有限公司2025年第二次臨時股東大會、第二次A股類別股東大會及第二次H股類別股東大 會的法律意見》，僅供參閱。 2025 年第二次临时股东大会、第二次 A 股类 别股东大会及第二次 H 股类别股东大会的 法律意见 董事長 倪真 中國，北京 2025年12月23日 於本公告日期，本公司執行董事為倪真先生；職工董事為黃埔先生；非執行董事為劉學 詩先生及司欣波先生；及獨立非執行董事為程念高先生、魏偉峰博士、牛向春 ...