Group 1: Market Conditions - The current market electricity trading model shows that bilateral negotiations account for approximately 41% of the market electricity volume, with the remainder primarily from monthly platform bidding and sporadic listed trading [2][3] - The market electricity release policy has resolved the dual-track pricing system, allowing coal prices to be reflected in electricity prices more promptly, which enhances the motivation of power generation and electricity sales companies [3] Group 2: Coal Supply and Pricing - The company's long-term coal supply accounts for about 70%, with a ratio of monthly to annual long-term contracts approximately 1:1 [3][4] - The long-term coal prices are aligned with the five major power generation groups [3] Group 3: External Electricity Impact - The influx of external electricity has significantly reduced the utilization hours of local coal-fired power generation in Jiangsu Province, primarily due to the province's coal reduction plan [3] - The company is planning to establish a holding company to acquire coal and power generation projects in Shanxi, aiming to increase its power generation share in Jiangsu [3] Group 4: Future Development and Expansion - The company has successfully obtained approval for a 2×100MW gas-fired cogeneration project in Jingjiang in the first half of 2018 [4] - The company will continue to pursue a dual-driven strategy, integrating finance and energy sectors, leveraging the stable cash flow from power generation to support the development of the thermal power sector [4]

Group 1: Electricity Transmission and Generation - The electricity transmitted from Shanxi to Jiangsu this year is approximately 17.5 billion kWh [2] - The growth rate of electricity consumption in Jiangsu has maintained at 6%-7% in recent years, with a stable forecast for next year's utilization hours [2][3] Group 2: Coal Inventory and Storage - The current coal inventory of the company is about 25 days' worth, with a maximum storage capacity of approximately 2.1 million tons [3] Group 3: Market Electricity Competition - The market electricity share has reached 50% this year, expected to increase to 80% next year, with plans to eliminate scheduled electricity by 2020 [3] - The main sources of market electricity currently include annual bilateral negotiations, monthly platform bidding, and listed trading [3] - The company has essentially reached sales intentions for 2019 with major users and electricity sales companies as competition intensifies [3]

Group 1: Coal Consumption and Supply - The annual coal consumption of power plants in Jiangsu Province is approximately 1,500,000 tons [2] - The long-term coal supply agreements account for about 70% of the coal used, with a fulfillment rate of around 90% [2] - The company’s coal inventory is approximately 12 days, which is lower than in previous years due to high coal prices [3] Group 2: Gas Supply and Pricing - The main gas sources for gas turbine units are PetroChina and Sinopec, with expected seasonal gas prices at 1.97 yuan per cubic meter [3] - Heating prices are approved by local pricing departments, with southern Jiangsu prices being higher than central and northern regions [3] Group 3: Future Development and Carbon Neutrality - The company plans to start construction on a new 1 million kilowatt unit this year, with future additions expected to be more challenging [3] - In the context of carbon neutrality, coal-fired power remains the main source of electricity generation, but there will be a reduction in coal consumption over time [4] - The company’s units are equipped with auxiliary service capabilities, which have generated considerable revenue [4]

Group 1: Company Overview - Jiangsu Guoxin is primarily composed of two sectors: energy and finance, with a focus on traditional coal-fired power generation [2] - The company operates power plants mainly in Jiangsu and Shanxi provinces, with coal-fired plants located along the Jiangsu coastline and three coal plants in Shanxi [2] - The company aims to become a comprehensive energy service provider, enhancing traditional energy while actively participating in new energy projects and expanding energy storage initiatives [2] Group 2: New Energy Initiatives - Since the end of 2021, Jiangsu Guoxin has invested in new energy projects, which will help achieve carbon emission and carbon neutrality goals [2] - The company is exploring chemical energy storage and considering establishing carbon investment trusts to participate in the carbon market [3] Group 3: Coal and Electricity Pricing - The company anticipates that coal prices will stabilize in 2022, returning to a more reasonable range due to government efforts [3] - The long-term coal price for 2022 is yet to be finalized, pending guidance from the National Development and Reform Commission [3] - The long-term electricity price for 2022 is set at 0.466 yuan per kWh, approximately 20% higher than the benchmark coal-fired electricity price in Jiangsu [3] Group 4: Market Dynamics - The electricity market in Jiangsu is fully marketized for coal-fired generation, but residential and institutional electricity usage remains non-marketized [3] - All of the company's thermal power units have completed peak-shaving and frequency modulation upgrades, with varying costs depending on the depth of modifications and associated projects [4] Group 5: Auxiliary Services - To encourage thermal power companies to participate in peak-shaving and frequency modulation, the grid compensates based on participation depth, duration, and time slots [4] - The compensation costs for auxiliary services are shared among all regulated power generation companies, with thermal power units receiving higher compensation due to their significant participation [4]