Summary of China Nuclear Power Conference Call Industry Overview - The conference call primarily discusses the nuclear power industry in China, specifically focusing on the impact of recent tax policy changes on China Nuclear Power's operations and profitability. Key Points and Arguments 1. **Existing VAT Refund Policy**: The VAT refund policy for the 26 operational nuclear power units remains unchanged, adhering to the 2008 document, with refunds of 75% for the first five years, 70% for the second five years, and 55% for the third five years, ensuring stable returns for existing units [2][4][6]. 2. **New VAT Policy for Under-Construction Units**: For the 19 under-construction units approved before October 31, 2025, the VAT refund policy is adjusted to a 50% refund over ten years, impacting cash flow during the first decade post-commissioning [2][4][5]. 3. **Impact on Future Projects**: New units approved after October 31, 2025, will not benefit from VAT refunds, potentially lowering future project returns, although the short-term impact on China Nuclear Power's profits is limited [2][4][5]. 4. **Zhangzhou Unit 2**: This unit is expected to miss the VAT refund adjustment window and is projected to commence commercial operation by the end of the year [2][4][6]. 5. **Impact of Wind Power VAT Cancellation**: The cancellation of VAT refunds for onshore wind power is expected to reduce the company's total profit by approximately 75 million yuan annually, with a net profit impact of about 30 to 40 million yuan [2][8]. 6. **Cost Reduction Measures**: The company is implementing measures such as standardization, digitalization, and financial strategies like interest rate swaps to mitigate the financial pressure from VAT adjustments and ensure investor returns [3][9]. 7. **Future Commissioning Schedule**: The commissioning schedule for the 19 under-construction units includes one unit in 2025, two in 2026, five in 2027, and two to three annually thereafter, with a projected net profit impact of about 20 million yuan per unit during the first five to six years post-commissioning [4][7]. 8. **Profitability of Nuclear Projects**: Each nuclear project with an investment of 20 billion yuan is expected to generate a significant input tax balance, with no clear limit on the input deduction period [8][9]. 9. **Supplier Relations**: The company will not pressure upstream equipment suppliers to lower prices in response to the VAT refund cancellation, emphasizing the importance of maintaining quality and sustainable operations in the supply chain [10]. Other Important Information - The company has been actively communicating with relevant government departments regarding the importance of nuclear power for clean energy and has been monitoring policy changes closely [7]. - The overall impact of the new VAT policy on profits during the 14th Five-Year Plan period (ending in 2025) is expected to be minimal, while potential impacts may arise in the 16th Five-Year Plan and beyond as new projects come online [4][5].

Investment Rating - The report maintains a "Buy" rating for the power sector, emphasizing the potential for upward performance in specific stocks [5][9]. Core Insights - The report highlights that Q3 performance for thermal power is improving, with coal prices rebounding, which enhances expectations for stable electricity prices. The average coal price at ports was 673 RMB/ton in Q3, down 180 RMB/ton year-on-year, but has recently increased to 739 RMB/ton [5][14]. - Hydropower is expected to benefit from improved autumn rainfall, with significant increases in inflow and outflow at the Three Gorges Dam, showing a 48.15% and 102.78% year-on-year increase respectively [5][14]. - Adjustments in tax policies for wind and nuclear power are noted, with offshore wind power receiving a 50% VAT refund policy from November 1, 2025, while onshore wind will no longer enjoy VAT refunds [3][4][14]. Summary by Sections Industry Overview - The Shanghai Composite Index fell by 1.47% and the CSI 300 Index decreased by 2.22% during the week of October 13-17, 2025. The CITIC Power and Utilities Index decreased by 0.43%, outperforming the CSI 300 by 1.79 percentage points [5][63]. Thermal Power - Q3 results for thermal power are on an upward trend, with a notable increase in expected profits for companies like Jiantou Energy, which anticipates a 232% increase in net profit [5][14]. - The report emphasizes the importance of coal price stability for maintaining electricity price expectations for 2026 [5][14]. Hydropower - The report notes significant improvements in hydropower due to favorable autumn rainfall, with a focus on the increased inflow and outflow at the Three Gorges Dam [5][14]. Wind and Nuclear Power - The report discusses the new tax policies affecting wind and nuclear power, highlighting the competitive advantage of offshore wind power due to the new VAT refund policy [3][4][14]. Key Stocks - The report recommends focusing on specific stocks within the thermal power sector, including Huaneng International, Huadian International, and others, as well as emphasizing the value of hydropower investments [5][9].

Market Review - The Shanghai Composite Index decreased by 1.47% and the ChiNext Index fell by 5.71% during the week of October 13-17, 2025. The coal sector increased by 5.66%, while the public utility sector rose by 0.05%. The environmental protection sector declined by 0.97%, and the carbon neutrality sector dropped by 3.14% [1][12]. Industry Insights - The coal price is expected to rise due to continuous abnormal autumn rain affecting production, along with safety and environmental inspections limiting supply. Despite October being a traditional off-peak season, traders are preparing for winter storage needs, leading to accelerated coal price increases post-National Day [4][31]. - The electricity demand is anticipated to increase as the peak winter season approaches, with NOAA predicting a 71% chance of La Niña occurring from October to December, which may lead to a colder winter [4][33]. - The annual long-term electricity price for 2025 has been locked in, and the capacity price mechanism is expected to stabilize electricity prices in the coming months [4][33]. Investment Recommendations - For the thermal power sector, it is recommended to focus on companies with power generation assets located in regions with tight supply-demand dynamics and favorable competition, such as Anhui Energy and Huadian International [4][65]. - In the hydropower sector, attention is drawn to leading operators like Yangtze Power, which is expected to benefit from stable electricity prices and regional supply-demand tightness [4][65]. - In the nuclear power sector, China National Nuclear Power is highlighted as a key player due to the expected increase in electricity generation and stable pricing [4][65]. - For renewable energy, the focus is on leading wind power operator Longyuan Power [4][65]. - In the environmental protection sector, the recommendation is to pay attention to urban comprehensive operation management service providers like Yuhua Tian [4][65]. Industry News - On October 15, 2025, Weiqiao Group announced the integration of its self-built power plant into the national grid, marking a significant shift towards collaboration and green transformation [4][59]. - The Gansu Electric Power Investment Company completed the commissioning of the largest million-kilowatt coal-fired power plant in the country, with a total installed capacity of 6 million kilowatts and an expected annual electricity generation of 33 billion kilowatt-hours [4][59]. - The National Development and Reform Commission issued a management method to support energy-saving and carbon reduction projects, including green methanol and sustainable aviation fuel production [4][60].

Core Insights - The "Hualong One" nuclear technology has become a significant achievement in China's nuclear industry, marking its 10th anniversary and contributing to global energy transition [1][2] - The technology has achieved a total of 41 operational and approved units, making it the most widely used third-generation nuclear technology globally [1][7] Group 1: Technological Innovation - The first "Hualong One" unit, Fujian Fuqing Nuclear Power Unit 5, began commercial operation on January 30, 2021, showcasing China's advancement in third-generation nuclear technology [2][5] - The success of "Hualong One" is attributed to its focus on independent technological innovation, combining lessons learned from global nuclear incidents to enhance safety systems [3][4] - The technology includes significant improvements such as a dual-layer safety shell and capabilities to withstand extreme events like tsunamis [3][4] Group 2: Equipment and Manufacturing - The domestic manufacturing rate of core equipment for the "Hualong One" has reached 88%, demonstrating significant advancements in equipment development and manufacturing capabilities [4][6] - The project has fostered a complete supply chain involving approximately 6,000 enterprises, enhancing the domestic nuclear power industry [4][6] Group 3: Batch Construction and Expansion - The "Hualong One" has transitioned from initial construction to batch production, with ongoing optimization and digital transformation efforts [5][6] - The successful operation of the first unit has led to the planning of six additional units at the Zhangzhou Nuclear Power Base, marking a significant step in batch construction [6] Group 4: International Collaboration - The "Hualong One" technology has been successfully implemented in Pakistan, addressing a significant portion of the country's electricity needs [7][8] - The technology has gained acceptance in over 20 countries, establishing itself as a key player in the international nuclear market [7][8] - The collaborative efforts involve numerous domestic and international organizations, contributing to the development of 179 key technologies [8]

Core Insights - The "Linglong No. 1" has successfully completed its cold test, marking it as the world's first land-based commercial modular small reactor, expected to generate 1 billion kWh annually [1][15]. Group 1: Project Overview - "Linglong No. 1" is recognized as a significant breakthrough in China's nuclear power innovation, being the first small modular reactor to pass the International Atomic Energy Agency's safety review [5][13]. - The reactor's design is compact, with a diameter of only 30 meters, making it one-tenth the size of traditional commercial reactors, and it has a power output of 125,000 kW [7][10]. Group 2: Design and Construction Features - The reactor features an integrated design and modular construction, eliminating the need for separate installation of key components, which enhances safety and reliability while reducing construction time and costs [8][10]. - The steam generator is installed inside the pressure vessel, allowing for a compact reactor module that can be easily transported and installed on-site [8][10]. Group 3: Applications and Flexibility - "Linglong No. 1" is designed for versatile energy supply applications, including electricity generation, urban heating, seawater desalination, industrial steam supply, and oil extraction, making it suitable for various locations such as inland areas, islands, and offshore oil platforms [10][12]. - The reactor is also being developed for use in floating nuclear power stations, enhancing its mobility and ability to provide power where needed [12]. Group 4: Future Plans and Environmental Impact - The reactor is scheduled to be operational by 2026, with the potential to meet the electricity needs of 526,000 households in Hainan [15]. - Each "Linglong No. 1" unit is expected to reduce carbon dioxide emissions by 880,000 tons annually, equivalent to planting 7.5 million trees [15].

Group 1 - The world's first sub-angstrom snapshot spectral imaging chip "Yuheng" has been developed by a team led by Professor Fang Lu from Tsinghua University, marking a significant advancement in intelligent photonics technology for high-precision imaging and measurement [2] - The RoboChallenge, the first large-scale, multi-task benchmark test for real robots operating in real physical environments, has been launched, providing reliable and comparable evaluation standards for visual language action models in robotics [2] Group 2 - A new type of artificial muscle developed by a research team from Ulsan National Institute of Science and Technology can switch between "soft and flexible" and "hard and powerful" states, capable of lifting objects weighing 4,000 times its own weight, which may advance soft robotics, wearable devices, and medical assistive technologies [4][5] - Fudan University has developed a tin-based perovskite solar cell that achieves a world record light-to-electricity conversion efficiency of 17.7% while being environmentally friendly throughout its lifecycle [5] - The "Linglong No. 1" modular small reactor has successfully completed its cold test, laying a solid foundation for subsequent fuel loading and commercial operation, with an expected annual power generation of 1 billion kWh, sufficient to meet the electricity needs of 526,000 households in Hainan and reduce carbon emissions by approximately 880,000 tons [5]

Core Insights - The successful cold test of "Linglong No. 1," the world's first land-based commercial modular small reactor, marks a significant achievement for China's nuclear energy sector and reinforces its competitive advantage in the international small reactor market [2][3] Group 1: Project Overview - "Linglong No. 1" is recognized as the first land-based commercial modular small reactor to pass the International Atomic Energy Agency (IAEA) safety review, representing a major breakthrough in China's nuclear power innovation [2] - The cold test serves as a comprehensive performance check of the reactor, validating the integrity and sealing of the primary circuit pressure boundary and ensuring the quality of equipment installation for safe and stable future operations [2] Group 2: Environmental Impact - Once operational, "Linglong No. 1" is expected to generate an annual electricity output of 1 billion kilowatt-hours, sufficient to meet the annual electricity needs of 526,000 households in Hainan [3] - The project is projected to reduce carbon dioxide emissions by approximately 880,000 tons annually, equivalent to planting 7.5 million trees each year, contributing to China's dual carbon goals and the development of Hainan as a "clean energy island" [3]

Core Viewpoint - The successful completion of the cold performance test for the "Linglong One" modular small reactor marks a significant milestone for China's nuclear power industry, paving the way for subsequent operations and commercial use [1][3]. Group 1: Project Overview - "Linglong One" is the world's first land-based commercial modular small reactor, located in Hainan Changjiang, and has passed the safety review by the International Atomic Energy Agency [3]. - The cold performance test conducted is a comprehensive assessment of the reactor's performance, ensuring its safe and stable operation in the future [3]. Group 2: Future Plans and Impact - Following the cold performance test, "Linglong One" will proceed with planned hot performance tests and criticality tests [5]. - Once operational, it is expected to generate an annual electricity output of 1 billion kilowatt-hours, which can meet the electricity needs of 526,000 households in Hainan, while reducing carbon dioxide emissions by approximately 880,000 tons, equivalent to planting 7.5 million trees in a year [5].

Core Viewpoint - The successful completion of the cold functional test for the "Linglong No. 1" modular small reactor marks a significant advancement in China's nuclear energy capabilities and positions the country favorably in the international small reactor market [1][3]. Group 1: Project Overview - "Linglong No. 1" is the world's first land-based commercial modular small reactor, which has passed the International Atomic Energy Agency's safety review, representing a major breakthrough in China's independent innovation in nuclear power [1]. - The cold functional test serves as a comprehensive assessment of the reactor's performance, ensuring the integrity and sealing of the primary circuit pressure boundary, and verifying the installation quality of related equipment and pipelines [1]. Group 2: Environmental Impact - Once operational, "Linglong No. 1" is expected to generate an annual electricity output of 1 billion kilowatt-hours, meeting the electricity needs of approximately 526,000 households in Hainan [3]. - The project is projected to reduce carbon dioxide emissions by about 880,000 tons annually, equivalent to planting 7.5 million trees in a year, contributing to China's "dual carbon" goals and the construction of Hainan as a "clean energy island" [3]. Group 3: Industry Significance - The successful test enhances China's competitive edge in the small reactor market and establishes a strong foundation for future operations, including thermal testing and reactor loading [1]. - The demonstration of advanced reactor technology is expected to promote the development of nuclear energy globally, setting a benchmark for small reactor advancements [1].

记者从中核集团获悉，"玲龙一号"全球首堆的冷态性能试验今天（16日）圆满完成，为后续的反应堆装 料及商运奠定了坚实的基础。 全球首个陆上商用模块式小型堆——"玲龙一号"位于海南昌江，是全球首个通过国际原子能机构安全审 查的陆上商用模块化小堆。今天完成的冷态功能试验是核电厂大型综合专项调试试验，是对整个反应堆 性能的第一次全面"体检"，确保后续安全稳定运行。 （文章来源：央视新闻） 后续，"玲龙一号"还将按计划开展热态性能试验、临界试验等试验工作。建成投运后，预计每年发电量 可达10亿度，满足海南52.6万户家庭用电需求，减少二氧化碳排放量约88万吨，相当于一年植树750万 棵。 ...