Financial Performance - Total revenue for 2025 reached CNY 21.21 billion, an increase of 37.18% compared to CNY 15.46 billion in the previous year[3] - Net profit attributable to shareholders was CNY 3.16 billion, up 54.35% from CNY 2.05 billion year-on-year[3] - Operating profit rose to CNY 3.72 billion, reflecting a growth of 53.13% compared to CNY 2.43 billion in the prior year[3] - Basic earnings per share rose to CNY 4.06, representing a 53.79% increase from CNY 2.64 in the previous year[3] Asset and Equity Growth - The company's total assets increased by 28.46% to CNY 30.16 billion from CNY 23.47 billion at the beginning of the period[3] - The net assets attributable to shareholders increased by 25.22% to CNY 15.50 billion from CNY 12.38 billion[3] - The weighted average return on equity improved to 22.38%, up from 18.05% in the previous year, an increase of 4.33%[3] Cash Flow - Cash flow from operating activities was CNY 2.23 billion, a decrease of 9.54% compared to the previous year, down by CNY 0.24 billion[5] Strategic Outlook - The company aims to leverage opportunities in the new power system and expand into international markets[4] - The company did not provide prior earnings forecasts before this performance announcement[6]

Core Insights - The fundamental driver of AI power supply solutions is the continuous improvement in single-chip and single-cabinet power levels, with companies like NVIDIA leading the charge in upgrading their AI chips [1] - The power of AI data centers in North America is projected to reach 71GW by 2028, driven by advancements in multi-chip designs such as NVL72 from NVIDIA and Superpod from Google [1] Group 1: Power Supply Evolution - The main directions for AIDC power supply iteration are high power, high voltage, and direct current, with NVIDIA's white paper outlining a clear path from AC to 800V DC solutions [2] - The OCP organization has established ±400V power supply standards, aiming for MW-level cabinet power through direct current supply [2] Group 2: Technological Changes and Growth - The evolution of power supply solutions has led to the development of integrated devices like HVDC Sidecar and SST hosts, which can perform multiple functions such as voltage reduction and power quality improvement [3] - Key challenges in R&D include power conversion modules and high-frequency isolation transformers, with third-generation wide bandgap semiconductors like SiC and GaN being crucial for achieving high voltage and efficiency [3] Group 3: Investment Opportunities - Four key areas for investment consideration include AIDC power hosts (PSU, HVDC, SST), with companies like Sungrow Power (300274.SZ) and Megmeet (002851.SZ) being notable mentions [4] - Energy storage solutions at the station level are highlighted, with companies such as Sungrow Power and Fluence Energy (FLNC.US) being potential investment targets [4] - Core incremental components like solid-state circuit breakers and electronic fuses are also identified, with companies like Liyang Technology (002706.SZ) and Vicor Corporation (VICR.US) being recommended [4] - Third-generation semiconductors like GaN and SiC are emphasized as critical components for future developments [4]

Core Viewpoint - The stock of Siyuan Electric has shown significant growth in recent trading sessions, with a notable increase in both revenue and net profit year-on-year, indicating strong financial performance and investor interest [1][2]. Group 1: Stock Performance - On January 15, Siyuan Electric's stock rose by 2.62%, reaching 166.11 yuan per share, with a trading volume of 286 million yuan and a turnover rate of 0.29%, resulting in a total market capitalization of 129.746 billion yuan [1]. - Year-to-date, the stock price has increased by 7.45%, with an 8.65% rise over the last five trading days, an 11.34% increase over the last 20 days, and a 35.21% increase over the last 60 days [1]. Group 2: Financial Performance - For the period from January to September 2025, Siyuan Electric achieved a revenue of 13.827 billion yuan, representing a year-on-year growth of 32.86%, and a net profit attributable to shareholders of 2.191 billion yuan, which is a 46.94% increase compared to the previous year [2]. - Since its A-share listing, Siyuan Electric has distributed a total of 2.509 billion yuan in dividends, with 930 million yuan distributed over the last three years [3]. Group 3: Shareholder Information - As of September 30, 2025, the number of shareholders of Siyuan Electric increased to 21,000, reflecting a 5.11% rise, while the average circulating shares per person decreased by 4.44% to 29,059 shares [2]. - The largest circulating shareholder is Hong Kong Central Clearing Limited, holding 165 million shares, which is an increase of 10.4543 million shares from the previous period [3].

Core Viewpoint - The core contradiction in artificial intelligence infrastructure construction is shifting from the pursuit of GPU quantity to the competition for power supply speed, with "Time-to-Power" becoming the most severe bottleneck in AI construction [1][2]. Group 1: Power Supply Challenges - The average lifespan of power grids in the US and EU has reached 35 to 40 years, and the infrastructure is increasingly fragile in the face of explosive energy demands from AI data centers (AIDC) [1][2]. - The domestic power equipment capacity in the US can only meet about 40% of local demand, with waiting times for grid connection extending to nearly five years [1][2]. - This structural shortage is reshaping the pricing power in the supply chain, with qualified Chinese suppliers gaining advantages not just from lower costs but from shorter delivery times [1][3]. Group 2: Market Growth and Demand - Goldman Sachs projects that by 2030, electricity consumption by US data centers (including AI and non-AI) will increase by approximately 175% compared to 2023, contributing about 120 basis points to overall electricity demand [5]. - The overall addressable market for AI data center power products is expected to expand at a compound annual growth rate (CAGR) of about 39% from 2025 to 2030, covering various product categories [7][8]. Group 3: Product Prioritization - Goldman Sachs has provided a clear preference ranking for Chinese power supply-related product categories: gas turbine blades > power transformers > electrical components > uninterruptible power supplies/power racks > liquid cooling systems > server power [3][16]. - Gas turbine blades rank highest due to high material science and manufacturing barriers, while power transformers follow due to labor-intensive manufacturing and lengthy certification cycles [17]. Group 4: Competitive Advantages of Chinese Suppliers - The decisive competitive advantage for qualified Chinese suppliers is not only lower costs but also shorter delivery cycles, which have become the primary decision factor for data center operators and utility companies [10]. - Companies like Siyi Electric have gained market share in the US due to their short delivery cycles, with expected revenue from the US market increasing from 26% in 2026 to 28% in 2028 of their overseas income [10]. Group 5: Pricing Power and Profit Margins - Due to severe supply shortages, Chinese suppliers can achieve significant price premiums in overseas markets, ranging from 10% to 80% compared to domestic sales [12]. - For example, Siyi Electric's products have a gross margin of about 45% in the US, compared to 30% domestically, indicating a substantial profit margin increase despite potential tariffs and logistics costs [12].

Core Insights - The core contradiction in AI infrastructure construction is shifting from merely pursuing GPU quantities to competing for power supply speed, with "Time-to-Power" becoming the most severe bottleneck in AI development [1] - Chinese power solution providers with rapid delivery capabilities and large-scale production advantages are experiencing a historic revaluation opportunity [1] Group 1: Power Supply Challenges - The average lifespan of power grids in the US and EU has reached 35 to 40 years, and the infrastructure is increasingly fragile due to the explosive energy demands of AI data centers (AIDC) [1] - Current domestic power equipment capacity in the US can only meet about 40% of local demand, with interconnection waiting times extending to nearly five years [1] - Goldman Sachs predicts that the power supply shortage in the US will persist until 2030, with a projected 175% increase in electricity consumption by data centers by 2030 [2][3] Group 2: Market Dynamics and Growth - The overall addressable market for AI data center power products is expected to expand at a compound annual growth rate (CAGR) of approximately 39% from 2025 to 2030 [3] - The growth is driven by continuous capacity construction, increasing power density, and a shift from AC to DC architecture, with 800V DC distribution becoming the standard for many AI data center projects [4] Group 3: Competitive Advantages of Chinese Suppliers - Chinese suppliers are gaining a decisive competitive advantage not only through lower costs but also through shorter delivery cycles, which have become a primary decision factor for data center operators [5] - Companies like Siyi Electric and Yinglite are positioned to benefit from the supply shortages in the US market, with Siyi Electric's revenue from the US expected to grow from 26% in 2026 to 28% in 2028 [5][6] Group 4: Product Prioritization - Goldman Sachs has provided a clear preference ranking for Chinese power supply-related product categories: gas turbine blades > power transformers > electrical components > uninterruptible power supplies/power racks > liquid cooling systems > server power [6][7] - Gas turbine blades rank highest due to high material science and manufacturing barriers, while power transformers follow due to labor-intensive manufacturing and lengthy certification processes [7]

Summary of Conference Call on Chinese Power Solution Providers Industry Overview - The focus is on the **AI Data Center (AIDC)** power supply sector, particularly the **Chinese power solution providers** that are positioned to address the critical bottleneck of **time-to-power** in the AI buildout [3][4][13]. Key Insights - **Export-Driven Opportunities**: Chinese firms with expertise in **High-Voltage Direct Current (HVDC)** systems and established OEM/ODM relationships are expected to benefit from the increasing demand for robust AIDC power infrastructure, particularly in the US market [3][4][17]. - **Market Dynamics**: The US is experiencing a severe power bottleneck, with local power equipment capacity covering only **40%** of demand. This creates an opportunity for non-traditional suppliers, including qualified Chinese companies, to fill the gap [13][24]. - **Growth Projections**: The average sales CAGR for AIDC power products is projected to reach **39%** through **2030E**, driven by capacity buildout and technology-driven ASP inflation [15][58]. Preferred Companies - **Yingliu**: A leading manufacturer of gas turbine blades, expected to benefit from supply shortages, with a projected revenue and EPS CAGR of **25%** and **40%** respectively from **2025-30E** [21][81]. - **Sieyuan**: Positioned as a top supplier for power transformers, with a projected revenue CAGR of **23%** and net profit CAGR of **28%** from **2025-30E** [21][82]. - **Kstar**: Anticipated to see a **27%** total sales CAGR, driven by overseas high-power electricals and a strong focus on 800V DC products [21][81]. - **Envicool**: A liquid cooling specialist with a projected **98%** CAGR in server cooling sales from **2025-30E** [21][81]. - **Hongfa**: Expected to benefit from rising demand for HVDC relays, with a revenue target of **Rmb2,160 million** by **2030E** [21][81]. - **Jianghai**: Anticipated to see earlier-than-expected demand for aluminum electrolytic capacitors, with a focus on supercapacitors as a medium-term growth driver [21][22]. Competitive Landscape - **Supply Constraints**: The supply of gas turbines and transformers is expected to remain tight until **2028E-2030E**, with significant backlogs reported by major manufacturers [14][40]. - **Pricing Power**: Chinese suppliers can command price premiums of **10% to 80%** in overseas markets compared to domestic sales, driven by shortages and the ability to deliver faster [17][77]. Structural Trends - **Power Demand Growth**: The US is projected to see a **175%** increase in data center electricity use by **2030**, contributing to a **2.6%** CAGR in power demand [23][24]. - **Technological Shift**: The transition to **800V DC architecture** is becoming standard for new AI data center projects, which is expected to enhance energy efficiency and reduce operational costs [57][70]. Conclusion - The Chinese power solution providers are well-positioned to capture significant market share in the AIDC sector, driven by their ability to meet stringent technical requirements and deliver products with shorter lead times. The combination of strong demand, supply constraints, and technological advancements presents a compelling investment opportunity in this sector [3][4][17][72].

Summary of Conference Call Notes Industry Overview - The global grid equipment industry is experiencing a structural shortage driven by demand for grid upgrades and increased automation in data centers (AIDC) [31][32] - In the US, power has become a significant bottleneck for data center construction, with average wait times for grid connections increasing to nearly five years from three years in 2020 [31] - Major companies like Siemens Energy and GE Vernova have order backlogs equivalent to 3.0 to 3.7 years of revenue, indicating strong demand outpacing manufacturing capacity [31] - The shortage of power transformers and tank-type circuit breakers is particularly acute, with forecasts indicating a 30% shortage in 2026 narrowing to around 10% by 2030 [37] Company Insights: Sieyuan Electric - Sieyuan Electric is one of the top-3 suppliers to China's State Grid, with 34% of its revenue coming from overseas markets in 1H25 [2] - The company has a significantly shorter delivery cycle for transformers (6-9 months) compared to competitors (2-3 years), allowing it to capture market share in the US [2] - Expected overseas revenue growth for Sieyuan is projected at a 43% CAGR from 2025 to 2030, with contributions to total revenue reaching 53% by 2030 [2][51] - Sieyuan's global market share in switchgear and transformers is expected to grow to 8% and 6% respectively by 2030 [13][51] - The company is valued at 25X 2028E P/E, with a 12-month target price of Rmb194.6, implying a 22% upside [2][50] Company Insights: Huaming Power Equipment - Huaming holds a 32% market share by value and 90% by volume in on-load tap changers in China as of 2025 [3] - The company is expected to see overseas revenue growth at a 26% CAGR from 2025 to 2030, with global market share rising from 13% to 18% by 2030 [3][20] - However, the lengthy certification process for tap changers (18-36 months) limits rapid market entry despite the overall equipment shortage [3][22] - Huaming is valued at 22X 2028E P/E, with a 12-month target price of Rmb24.2, indicating a 12% downside [3][27] Key Market Dynamics - The US transformer market is projected to reach USD 5.5-6 billion by 2025, driven by data centers and renewable energy interconnections [56][58] - AIDC is contributing approximately 40% of incremental demand, significantly impacting order backlogs and lead times [58] - The pricing for power transformers in the US could be several times higher than in China, with potential gross profit margins increasing from 15% in China to 42% for exports to the US [65][77] Competitive Advantages of Sieyuan - Sieyuan's competitive edge lies in its high product quality, strong R&D capabilities, and efficient market execution [81] - The company has established itself as a leader in State Grid tendering, securing top ranks across multiple product categories [86] - Sieyuan's partnerships and operational excellence position it well to capitalize on the structural shortages in the US market [79][81] Conclusion - The grid equipment industry is poised for significant growth due to structural shortages and increasing demand for modernization - Sieyuan Electric is well-positioned to benefit from these trends, while Huaming Power Equipment faces challenges due to certification delays - Investors should consider the potential for high profitability in the US market, particularly for companies with shorter lead times and strong product offerings

Group 1 - Guodian NARI (600406) is a state-owned enterprise based in Nanjing, recognized as a benchmark for scientific reform among central enterprises, with a strong research and development system and significant achievements in grid technology [1] - The company has a market share of over 75% in dispatch automation systems and over 50% in UHV converter valves, with its products addressing grid stability issues caused by renewable energy generation [1] - The demand for AI computing power and electricity is driving the construction of new power systems, and the company is expanding its overseas business, exporting products like distribution transformers to multiple countries [1] Group 2 - Suyuan Electric (002028) is a comprehensive supplier of power transmission and distribution based in Shanghai, focusing on UHV and energy storage sectors, and is the largest manufacturer of high-voltage packages and coils in China [2] - The company expects 60% of its overseas revenue in 2024 to come from transformers, with overseas orders growing over 50% and a remarkable 89% growth in the first half of 2025 [2] - The surge in demand for high-voltage transmission and distribution equipment driven by AI computing centers and new energy projects presents significant growth opportunities for the company [2] Group 3 - China XD Electric (601179) is a state-owned enterprise based in Xi'an, specializing in high and ultra-high voltage transformers and power transmission and distribution equipment, capable of producing products across a voltage range of 10kV to 1000kV [3] - The company has a significant market share in UHV projects and has seen an increase in exports to Europe, with its technology reaching international advanced levels [3] - The demand for UHV technology is increasing due to the need for long-distance power transmission, and the company is well-positioned to meet both domestic and international market needs [3] Group 4 - Baobian Electric (600550) is a core supplier of UHV DC transformers based in Baoding, with a strong position in high-end transformers and a market share of 30% in UHV products [4] - The company has unique technologies that reduce material costs and has participated in major projects, exporting to over 40 countries [4] - The urgent demand for high-reliability transformers driven by AI computing centers and new energy power stations positions the company to benefit from both domestic and international projects [4] Group 5 - Jinpan Technology (688676) is a leading global manufacturer of dry-type transformers based in Haikou, focusing on wind and solar energy applications, with 98% of its products supporting renewable energy [5] - The company has a significant order backlog of 2.85 billion yuan for 2025, reflecting a substantial year-on-year growth of 180% [5] - The increasing demand for efficient dry-type transformers from AI computing centers and the proliferation of renewable energy generation presents a strong growth opportunity for the company [5] Group 6 - Mingyang Electric (301291) is a leader in offshore wind power transformers based in Zhongshan, specializing in dry-type transformers and prefabricated substations [6] - The company has developed products that meet the extreme conditions of offshore environments and is expected to achieve significant sales in North America by 2026 [6] - The growing demand for offshore wind power and the urgent need for grid upgrades in North America provide ample order support for the company [6] Group 7 - Teruid (300001) is a pioneer in outdoor box-type power equipment based in Qingdao, recognized as a champion enterprise in manufacturing [7] - The company has a complete technology system for modular prefabricated substations and has a leading market share in the new energy sector [7] - The demand for modular products from AI computing centers and the need for grid upgrades position the company to capture significant market growth [7] Group 8 - XJ Electric (000400) is a high-tech enterprise based in Xuchang, focusing on UHV and smart grid technologies, with a comprehensive industrial chain covering all aspects of power transmission and distribution [8] - The company has participated in all domestic UHV DC transmission projects and has a strong patent portfolio [8] - The growth in AI computing and electricity demand is accelerating the construction of smart grids, providing competitive advantages for the company [8] Group 9 - Sifang Co., Ltd. (601126) is based in Beijing and has a strong advantage in smart distribution networks, providing a full range of products for self-healing control and primary and secondary integration [9] - The company has implemented its products in over 30 provinces and cities, significantly improving efficiency in power distribution [9] - The demand for reliable power supply from AI computing centers and the ongoing digital transformation of distribution networks present broad development opportunities for the company [9] Group 10 - Samsung Medical (601567) is based in Ningbo and operates in both smart power distribution and medical services, covering a wide range of products in the power equipment sector [10] - The company has established manufacturing bases in multiple locations and has a marketing presence in over 70 countries [10] - The construction of AI computing centers and new energy projects requires substantial power distribution equipment, positioning the company to benefit from global demand growth [10]

中化新网讯 近日，宁德时代与思源电气签署为期三年的储能合作备忘录，目标合作电量50吉瓦时。双 方将基于各自传统优势领域，推广储能市场化双采模式，共同提升产业链协同效率，助力储能行业高质 量发展。 图为签约现场。(企业供图) 据了解，思源电气专注于电力领域的技术研发、设备制造及工程服务，积极推动能源行业的数字化转 型。此次宁德时代与思源电气签署合作备忘录，是双方继2022年建立合作以来的一次战略性深化与全新 探索，进一步强化了双方在储能产业链中的协同深度。 未来三年，双方将围绕储能系统、输配电等配套设备，实现产业链上下游的双向协同。在此基础上，双 方还将加强技术交流与项目合作，持续优化整体解决方案能力，提升项目交付效率与可靠性，加速储能 系统在新型电力网络中的规模化应用。 ...

Group 1 - The core viewpoint of the news is that Siyuan Electric has shown a significant increase in revenue and net profit for the first nine months of 2025, indicating strong financial performance [2] - As of January 12, 2025, Siyuan Electric's stock price decreased by 2.04% to 156.30 CNY per share, with a total market capitalization of 1220.84 billion CNY [1] - The company has a main business focus on the research, production, sales, and service of power transmission and transformation equipment, with 99.47% of its revenue coming from the power distribution equipment sector [1] Group 2 - For the period from January to September 2025, Siyuan Electric achieved an operating income of 13.827 billion CNY, representing a year-on-year growth of 32.86%, and a net profit attributable to shareholders of 2.191 billion CNY, up 46.94% year-on-year [2] - The company has distributed a total of 2.509 billion CNY in dividends since its A-share listing, with 930 million CNY distributed in the last three years [3] - As of September 30, 2025, the number of shareholders of Siyuan Electric increased by 5.11% to 21,000, while the average circulating shares per person decreased by 4.44% to 29,059 shares [2][3]