Investment Rating - The report maintains a positive outlook on the Guangdong electricity market, particularly highlighting the expected revenue increase for nuclear power due to the discontinuation of the variable cost compensation mechanism [3]. Core Insights - The Guangdong Electricity Trading Center has released the key mechanisms and parameters for the 2026 electricity market, indicating that all renewable energy generation will enter the market, with a trading price based on a benchmark price plus a floating range [3]. - The annual trading price for 2026 is set with a reference price of 0.463 yuan/kWh, with an upper limit of 0.554 yuan/kWh and a lower limit of 0.372 yuan/kWh [3]. - The nuclear power market transaction volume is expected to increase, with a planned market transaction volume of approximately 312 billion kWh for 2026, which is an increase of 39 billion kWh from the previous year [3]. - The discontinuation of the variable cost compensation mechanism for nuclear power is anticipated to enhance revenue, with projections indicating an increase of approximately 4 billion yuan if the trading price remains at the lower limit [3]. Summary by Sections Annual Trading Arrangements - The annual trading arrangements for 2026 will follow the guidelines set forth in the Guangdong Electricity Market's annual trading implementation plan, with all renewable energy projects entering the market [3]. Pricing Mechanisms - The trading price will be determined based on a benchmark price of 0.453 yuan/kWh, with a floating range of 20%, leading to a market reference price of 0.463 yuan/kWh for 2026 [3]. Nuclear Power Market - The nuclear power sector is set to see a significant increase in market transaction volume, with the planned volume for 2026 being 312 billion kWh, which is a notable increase from the previous year [3]. - The removal of the variable cost compensation mechanism is expected to lead to a revenue increase for nuclear power, with estimates suggesting an additional 10 billion yuan in revenue if the trading price remains stable [3].

Investment Rating - The report maintains a positive outlook on the Guangdong electricity market, indicating an "Overweight" rating for the industry [2]. Core Insights - The Guangdong Electricity Trading Center has released the key mechanisms and parameters for the 2026 trading year, which includes all new energy generation entering the market and a defined annual trading arrangement [2]. - The initial trading cap for coal, gas, and nuclear power plants is set at 70%, with potential adjustments based on market conditions [2]. - The benchmark electricity price for 2026 is set at 0.463 yuan/kWh, with upper and lower limits of 0.554 yuan/kWh and 0.372 yuan/kWh, respectively [2]. - Nuclear power's market transaction volume is expected to increase, with a planned volume of 312 billion kWh for 2026, up from 273 billion kWh in 2025 [2]. - The removal of the variable cost compensation mechanism for nuclear power is anticipated to enhance revenue, with projections indicating an increase of approximately 4 billion yuan to 10 billion yuan based on market conditions [2]. Summary by Sections Annual Trading Mechanism - The annual trading mechanism for 2026 has been established, allowing all new energy sources to enter the market, with trading limits based on historical performance [2]. Pricing Structure - The pricing structure remains unchanged, with a floating range based on a benchmark price of 0.453 yuan/kWh for coal, leading to a market reference price of 0.463 yuan/kWh for 2026 [2]. Nuclear Power Revenue - The nuclear power sector is expected to see revenue growth due to the elimination of the variable cost compensation mechanism, with significant increases in market transaction volumes planned for 2026 [2].

Company Situation - On October 21, the Guangdong Power Trading Center released the "Key Mechanisms and Parameters for Guangdong Power Market Trading in 2026," which indicates that the annual marketized electricity volume will increase from 27.3 billion kWh in 2025 to 31.2 billion kWh in 2026 [1] - The new plan reflects the Guangdong government's recognition of the value of nuclear power as a clean baseload energy source, providing positive support for the performance of the nuclear power industry in China in 2026 [1] Electricity Pricing - In 2026, nuclear power units will no longer execute the variable cost compensation mechanism, with the theoretical floor price for thermal and nuclear power set at 20% below the coal benchmark price, which is 0.372 yuan/kWh [1] - Compared to 2025, the annual market trading average price was 0.392 yuan/kWh, with variable cost compensation of 0.041 yuan/kWh, resulting in an effective price of approximately 0.351 yuan/kWh after compensation [1] - Monthly market trading prices have been close to the floor price since February, with an effective price of approximately 0.332 yuan/kWh after variable cost compensation [1] Electricity Volume - The new plan increases the market trading proportion of the 10 marketized trading units (with utilization hours under 7,500 hours) from about 35% to 40%, and the overall proportion from about 40% to 45% when considering all hours above 7,500 hours entering market trading [1] - It is assumed that annual trading will account for about 90% of marketized trading, with the remainder being monthly and other types [1] Profit Forecast and Valuation - The impact on profitability for Guangdong units in 2026 may include a bottoming out of annual market trading electricity prices, an increase in comprehensive electricity prices after the cancellation of variable cost compensation, and a reduction in some electricity prices from planned to market trading prices [2] - Assuming relatively fixed costs and unchanged net profit attributable to the parent company, the comprehensive impact on profitability is estimated to be 300 to 400 million yuan [2] - Based on the 2026 electricity trading plan, the comprehensive electricity price is expected to increase compared to 2025, with a 4.8% increase in profit forecast for 2026 to 10.1 billion yuan [2] - Current A/H share prices correspond to 21.3x/20.2x and 15.5x/14.5x price-to-earnings ratios for 2025-26, maintaining an outperform rating and target prices of 5.07 yuan and 3.59 HKD, indicating an upside potential of 26% and 13% respectively compared to current A/H share prices [2]

Core Insights - The forum focused on the theme "Nuclear Power Empowering the Future, Innovation Leading Change," gathering over 150 representatives from various sectors to discuss the nuclear power industry [1][3] Industry Overview - The global nuclear power generation is expected to reach a near ten-year high in 2024, with strong growth anticipated [4] - By 2050, global nuclear power installed capacity is projected to exceed 900 million kilowatts, doubling from current levels [4] - China plays a crucial role in this growth, with 59 operational nuclear reactors and a total installed capacity of 62.48 million kilowatts [4] Safety and Performance - China's operational nuclear reactors have achieved over 600 reactor years of safe and stable operation, maintaining the highest WANO comprehensive index score globally for nine consecutive years [4] - 43.18% of the world's top-performing nuclear reactors are from China, highlighting its leadership in nuclear safety [4] Technological Advancements - The "Hualong One" reactor design signifies China's complete autonomy in nuclear power equipment design and manufacturing, with over 400 key equipment items being independently developed [5][6] - The nuclear industry in China is advancing towards digital transformation, with the "Hemu System" being implemented across 33 reactors of various technologies [7][8] Future Directions - The forum emphasized the importance of collaborative innovation in developing nuclear fusion as a "ultimate clean energy," with significant research efforts ongoing in China [9]

Core Viewpoint - The global nuclear power generation is experiencing strong growth, presenting new development opportunities for the nuclear energy sector, which is expected to play a significant role in addressing climate change [1][4]. Group 1: Global Nuclear Power Trends - In 2024, global nuclear power generation is expected to reach a nearly ten-year high, with continued strong growth anticipated [1]. - Multiple international authoritative organizations have raised their nuclear energy development forecasts for four consecutive years, predicting that by 2050, global nuclear power installed capacity will exceed 900 million kilowatts, achieving a doubling of current levels [1]. Group 2: China's Nuclear Power Industry - China has established a world-class nuclear power industry chain, starting from the operation of the Daya Bay Nuclear Power Plant in 1994, with over 30 years of technological accumulation and industrial collaboration [4]. - As of now, China operates 59 nuclear power units with an installed capacity of 62.48 million kilowatts and has 53 units under construction with a capacity of 62.93 million kilowatts, leading the world with a total installed capacity exceeding 125 million kilowatts [4][5]. Group 3: Safety and Operational Performance - China's operational nuclear power units have safely and stably operated for over 600 reactor years, achieving the top score in the WANO (World Association of Nuclear Operators) comprehensive index for nine consecutive years [5]. - In the 2024 WANO report, 43.18% of the globally top-scoring units were from China, highlighting the country's strong safety performance [5]. Group 4: Industry Development and Future Outlook - The implementation of the "Hualong One" technology has marked a significant milestone in China's nuclear power development, with over 5,400 upstream and downstream enterprises innovating together [4][6]. - The upcoming implementation of the "Atomic Energy Law of the People's Republic of China" in early 2026 is expected to further promote the healthy and sustainable development of China's nuclear energy sector [5]. - The "Hualong One" units currently under construction and operation total 41, leading globally, with continuous optimization in construction indicators reflecting a positive development trend [6].

Group 1 - As of now, China's total installed nuclear power capacity has exceeded 125 million kilowatts, maintaining the world's leading position [1] - The global nuclear power generation in 2024 is expected to reach a nearly ten-year high, with strong growth anticipated [1] - Multiple international authoritative organizations have raised their nuclear energy development forecasts for four consecutive years, predicting that by 2050, global nuclear power installed capacity will exceed 900 million kilowatts, achieving a doubling growth [1] Group 2 - China is one of the few countries with a complete nuclear power industrial system, currently operating 59 nuclear power units with a total installed capacity of 62.48 million kilowatts [1] - There are 53 approved units under construction, with an installed capacity of 62.93 million kilowatts [1] - China's operational nuclear power units have safely and stably operated for over 600 reactor years, ranking first globally in the World Association of Nuclear Operators (WANO) comprehensive index score for nine consecutive years [1] Group 3 - "Batch production" is becoming a key pathway for China's nuclear power to reach a higher level [1] - The domestically developed third-generation million-kilowatt nuclear power technology "Hualong One" has a total of 41 units under construction and in operation, ranking first globally [1] Group 4 - China General Nuclear Power Group has surpassed 100 million kilowatts in clean energy installations, including nuclear and renewable energy [2] - The implementation of the "Atomic Energy Law of the People's Republic of China" is expected to promote the healthy and sustainable development of China's nuclear energy sector [2] - Nuclear energy is anticipated to play a greater role in addressing climate change [2]

Core Insights - The report emphasizes the commitment of China General Nuclear Power Corporation (CGN) to sustainable development in Namibia, coinciding with the 35th anniversary of diplomatic relations between China and Namibia [1][5][7] Group 1: Company Operations - The Husab Uranium Mine, managed by CGN's subsidiary in Namibia, is the largest single investment project by China in Africa, having started construction in 2013 and officially commencing production in 2016 [5][7] - The mine achieved a remarkable performance in the past year, ranking third globally in natural uranium production, attributed to stable and efficient operations [7][8] - The company maintained a 100% planned maintenance rate and received a five-star certification from the South African Occupational Safety Association (NOSA), ensuring robust production progress [7][8] Group 2: Economic Impact - In 2024, the total expenditure of the company reached 10.11 billion Namibian dollars, with 7.42 billion Namibian dollars allocated for local procurement, significantly boosting the local economy [7][9] - Approximately 70% of the company's tender contracts were awarded to local enterprises, injecting vitality into the local economy [9][15] Group 3: Social Responsibility and Cultural Integration - The company has a local employment rate exceeding 95% and has funded over 20 university students through scholarship programs, collaborating with local and Chinese universities to cultivate local mining talent [9][15] - Initiatives such as the "Hope Farm" project, which donated 1,000 goats and sheep to local low-income families, and the establishment of a computer classroom at a local school, demonstrate the company's commitment to social responsibility [9][15] - The annual "Husab Cup" marathon and other community engagement activities have enhanced interaction and trust between the company and the local community, promoting cultural exchange [9][15] Group 4: Strategic Importance - The strategic significance of the Husab Uranium Mine was highlighted by local government officials, emphasizing its role in Namibia's development and alignment with the country's Vision 2030 and national development plans [15] - The mine's operations contribute to global sustainable goals while enhancing local value chains, reflecting a trust-based and mutually beneficial international partnership [15]

Summary of Earnings Preview for China Utilities Sector Industry Overview - The report focuses on the **China Utilities** sector, specifically highlighting the **Power, Renewables, and Power Grid** industries in the Asia Pacific region - The overall industry view is considered **Attractive** [4][6] Key Insights - **3Q25 Earnings Expectations**: - Continued margin recovery is anticipated for wind component and submarine cable players - Polysilicon earnings may see upside risks - Solar module producers are expected to maintain flat or show mild decline in losses quarter-over-quarter (QoQ) [1][6] - **Coal Prices and Power Tariffs**: - A slight weakening in unit profit is expected due to a small rise in coal prices and a persistently soft power tariff [6][8] - **Sector Performance**: - Wind sector is expected to see a sector-wide gross profit (GP) margin recovery, primarily driven by submarine cables with a favorable product mix in 3Q25 - Wind Turbine Generator (WTG) Original Equipment Manufacturers (OEMs) may experience a more muted recovery [6][8] Company-Specific Highlights - **CGN Power Co., Ltd (1816.HK)**: - On-grid power generation decreased by 3% year-over-year (YoY) in 3Q25 due to longer outage times - Estimated net profit of approximately **Rmb2.6 billion**, down 6% YoY [8][10] - **China Longyuan Power Group (0916.HK)**: - Forecasted net profit of **Rmb937 million** in 3Q25, down from **Rmb1,542 million** in 2Q25 - Net profit for 9M25 expected to be **Rmb4.5 billion**, down 22% YoY [8][10] - **Huaneng Power International Inc. (0902.HK)**: - Estimated net profit of **Rmb4.1 billion**, up approximately 38% YoY but down 5% QoQ - Unit fuel cost expected to decline by **Rmb0.036/kWh** (12% YoY) [8][10] - **Jiangsu Zhongtian Technology Co. Ltd. (600522.SS)**: - Forecasted net profit of **Rmb1.03 billion** for 3Q25, up 21.1% YoY and 9.6% QoQ [8][10] - **Goldwind (2208.HK)**: - Expected net profit of **Rmb953 million**, representing a 135.1% YoY increase [10][10] - **Tongwei Co. Ltd. (600438.SS)**: - Forecasted net loss of **Rmb2.2-2.4 billion** in 3Q25, with improvements in polysilicon business due to price rebounds [10][10] - **LONGi Green Energy Technology Co. Ltd. (601012.SS)**: - Expected loss of **Rmb1.0-1.3 billion** in 3Q25, with slight declines in wafer and module shipments [10][10] Additional Observations - **Polysilicon Players**: Potential earnings surprises are anticipated due to increases in shipments and average selling prices (ASP) in 3Q25 [6][8] - **Demand Outlook**: Weaker demand is expected in 4Q25 compared to 3Q25, particularly for solar products [6][8] This summary encapsulates the key points from the earnings preview for the China Utilities sector, highlighting both the overall industry outlook and specific company forecasts.

Investment Rating - The report maintains an "Outperform" rating for the public utility and environmental sectors [1][5][9]. Core Views - The report highlights the adjustment of value-added tax policies for renewable energy, particularly wind and nuclear power, which is expected to support the profitability of these sectors [3][18][19]. - The report emphasizes the ongoing government support for renewable energy development, indicating a gradual stabilization in profitability for new energy generation [4][29]. - The report suggests that the decline in coal and electricity prices may allow thermal power companies to maintain reasonable profit levels [4][29]. Summary by Sections Market Review - The Shanghai Composite Index fell by 2.22%, while the public utility index decreased by 0.69% and the environmental index dropped by 1.11% [1][15]. - Among the sub-sectors, thermal power decreased by 0.82%, hydropower increased by 1.69%, and new energy generation fell by 1.85% [1][15]. Important Events - The National Development and Reform Commission released a draft on renewable energy consumption targets, which includes both electricity and non-electric consumption minimum ratios [2][16]. - The government announced support for green methanol and sustainable aviation fuel projects, with funding covering up to 80% of project costs in certain regions [17]. Investment Strategy - Recommendations include major thermal power companies like Huadian International and Shanghai Electric, as well as leading renewable energy firms such as Longyuan Power and Three Gorges Energy [4][29]. - The report also suggests focusing on stable dividend-paying hydropower stocks like Yangtze Power and gas companies with trade capabilities like Jiufeng Energy [4][29]. Key Company Earnings Forecasts and Investment Ratings - Huadian International: Outperform, EPS forecast for 2024A at 0.49 and 2025E at 0.62 [9]. - Longyuan Power: Outperform, EPS forecast for 2024A at 0.76 and 2025E at 0.81 [9]. - China Nuclear Power: Outperform, EPS forecast for 2024A at 0.43 and 2025E at 0.50 [9]. Environmental Sector Insights - The water and waste incineration sectors are entering a mature phase, with improved free cash flow and lower risk preferences among investors [30]. - The domestic scientific instrument market presents significant opportunities for domestic replacements, with a market size exceeding $9 billion [30].

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份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 CGN Power Co., Ltd. * 中國廣核電力股份有限公司 （在中華人民共和國註冊成立的股份有限公司） （股份代號：1816） 海外監管公告 本公告由中國廣核電力股份有限公司（「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。 以下為本公司於深圳證券交易所網站發佈之《關於向不特定對象發行A股可轉換公 司債券募集資金專戶銷戶完成的公告》，僅供參閱。 承董事會命 中國廣核電力股份有限公司 尹恩剛 关于向不特定对象发行A股可转换公司债券募集资金专户销 户完成的公告 公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记 载、误导性陈述或者重大遗漏。 一、募集资金基本情况 根据中国证券监督管理委员会出具的《关于同意中国广核电力股份有限公司 向不特定对象发行可转换公司债券注册的批复》（证监许可〔2025〕479 号），中 国广核电力股份有限公司（以下简称"公司"）于 ...