Core Insights - China General Nuclear Power Group (CGN) has become a leader in the global nuclear power sector, with its "Hualong One" design being the most widely constructed third-generation nuclear reactor type worldwide [1][4] - CGN's brand value is projected to exceed 200 billion yuan by 2025, ranking 411th in the TopBrand World Brand 500 list [3][4] Group 1: Brand Development and Recognition - CGN has achieved continuous growth in brand building for four consecutive years, as recognized by the State-owned Assets Supervision and Administration Commission [1][4] - The company is committed to integrating brand strategy with corporate development strategy, focusing on five major brand projects during the 14th Five-Year Plan [7][8] Group 2: Technological Advancements - The "Hualong One" reactor technology has over 800 domestic and international patents and has passed various international certifications, making it a key player in China's nuclear power expansion [4][5] - The "Harmony System," CGN's first self-developed digital control system, has saved over 10 billion yuan in construction costs and has been successfully applied in 33 nuclear units [5][6] Group 3: International Expansion and Social Responsibility - CGN's international business now accounts for over 23% of its operations, with projects in more than 20 countries [7][8] - The company has initiated various social responsibility programs in countries like Brazil, Malaysia, and Laos, enhancing its international brand presence [7][8]

Core Viewpoint - The "Hualong One" nuclear reactor technology has become the most widely constructed and operated third-generation nuclear power technology globally, with 41 units currently approved for construction or operation [1] Company Summary - China General Nuclear Power Group (CGN) has developed the "Hualong One" technology, which is a third-generation nuclear power technology with complete independent intellectual property rights [1] - The technology encompasses core competencies in overall design, fuel and core design, equipment research and development, construction, and operational convenience, with over 800 domestic and international patents, including three China Patent Gold Awards [1] - "Hualong One" serves as the main reactor type for the mass construction of nuclear power in China and is a primary choice for the country's nuclear power expansion abroad [1]

Investment Rating - The report maintains a "Buy" rating for China General Nuclear Power Corporation (003816) [2] Core Views - The company's performance in the first half of 2025 showed a slight decline in revenue and net profit, attributed to increased generation but decreased electricity prices, leading to reduced gross profit from electricity sales [7] - The company has a significant number of nuclear power units under construction, which is expected to support future growth, and the reduction in financing costs due to interest rate cuts will help alleviate financial pressure [7] - The planned acquisition of nuclear power assets from the group is anticipated to inject further growth momentum into the company [7] - The profit forecasts for 2025-2027 have been adjusted downward due to significant price declines in the Guangdong and Guangxi regions and the expiration of tax incentives [7] Financial Data and Earnings Forecast - Total revenue for 2025 is projected at 85,690 million, with a year-on-year decrease of 1.3% [6] - Net profit attributable to shareholders is expected to be 10,172 million in 2025, reflecting a decline of 5.9% year-on-year [6] - Earnings per share for 2025 is forecasted at 0.20 yuan, with a projected PE ratio of 19 [6] - The company managed to reduce financial expenses by 8.78% in the first half of 2025, amounting to 22.82 million [7]

（在中華人民共和國註冊成立的股份有限公司） H股代號：1816 A股代號：003816 融合潔淨能源 締造綠色生活 2025中期報告 中廣核電力於2014年3月25日成立，2014年12月10日於香港聯交所主板上 市，並於2019年8月26日於深交所上市，是中廣核核能發電的唯一平台，公司 致力於安全高效、穩定可靠、清潔低碳的核能電力與能源供應，以及與之相 關的核能專業服務。 於本報告中，我們將闡述本集團截至2025年6月30日止六個月未經審計之合併 中期業績，連同2024年同期的比較數字，並概述為實現發展戰略而取得的進 展。 除本報告另有界定外，本報告所用詞彙與本公司《2024年度報告》所界定者具 有相同涵義。本報告中「子公司」與上市規則定義下的「附屬公司」具有相同含 義。本報告分別以中英文兩種文字編製，如中英文版本有任何歧義，以中文 版為準。 目錄 | 中期業績摘要 | 2 | | --- | --- | | 財務摘要 | 4 | | 股東價值 | 5 | | 財務、資產與投資 | 8 | | 業務表現與展望 | 15 | | 公司治理 | 34 | | 審閱報告 | 43 | | 合併資產負債表 | 44 ...

Core Viewpoint - China General Nuclear Power Corporation (CGN) experienced a 16% decline in net profit attributable to shareholders in the first half of 2024, impacted by market-driven electricity prices and increased fuel component costs [1] Group 1: Financial Performance - In 1H2024, CGN completed 10 scheduled refueling outages, totaling approximately 523 days [1] - The electricity generation from Daya Bay Nuclear Power, Lingdong Nuclear Power, and Fangchenggang Nuclear Power (Unit 4) increased by 39.78%, 11.80%, and 33.85% year-on-year, respectively [1] - In 1H2025, the subsidiary's electricity generation grew by 8.84% compared to the same period last year [1] Group 2: Future Outlook - In 2Q2025, the subsidiary's electricity generation increased by 4.0% year-on-year, with Daya Bay and Fangchenggang showing significant growth of 51.5% and 12.6%, respectively [1] - The nuclear power reserve projects are abundant, with Unit 1 in Huizhou expected to commence operations in the second half of the year [1] - As of 1H2025, the company manages 28 operational nuclear power units and 20 under construction, including 8 units under entrusted management, indicating a strong project reserve [1]

Investment Rating - The investment rating for China General Nuclear Power Corporation is maintained at "Hold" [5][7]. Core Views - The company reported a slight increase in electricity revenue of 1% despite a decrease in average market electricity prices, which fell by approximately 8.23% year-on-year [3][4]. - The net profit attributable to shareholders decreased by 16.30% year-on-year, primarily due to increased R&D expenses and higher fuel component payments [3][5]. - The company managed to increase its online electricity generation by 8.84% year-on-year in the first half of 2025, with significant contributions from specific nuclear power plants [4][5]. Financial Performance Summary - In the first half of 2025, the company achieved revenue of 39.167 billion yuan, a decrease of 0.53% year-on-year, and a net profit of 5.952 billion yuan, down 16.30% year-on-year [2][3]. - The gross profit margin and net profit margin decreased by 3.57 percentage points and 5.00 percentage points, respectively, to 34.99% and 22.55% [3]. - The company expects net profits for 2025-2027 to be 9.883 billion, 10.438 billion, and 10.553 billion yuan, respectively, with corresponding P/E ratios of 19.5, 18.5, and 18.3 [5][6]. Operational Highlights - The company completed 8 annual refueling outages in the first half of 2025, with a total outage calendar of 414 days, compared to 10 outages and 523 days in the same period of 2024 [4]. - The company has a robust pipeline with 28 operational and 20 under-construction nuclear power units, with the Huizhou Unit 1 expected to commence operations in the second half of 2025 [4][5].

Group 1 - China General Nuclear Power Corporation (CGN) plans to acquire 100% or partial stakes in four nuclear power companies from its controlling shareholder, China General Nuclear Group, for a total price of 9.375 billion yuan [2][3] - The acquisition is part of a commitment made by the controlling shareholder to avoid competition and transfer retained nuclear power-related businesses to CGN, as promised prior to CGN's A-share market listing in August 2019 [3][4] - As of June 30, 2025, CGN manages 28 operational nuclear power units and 20 under construction, accounting for 44.46% of the total operational and under-construction nuclear power capacity in China [2][5] Group 2 - The acquisition includes stakes in Huizhou Nuclear Power (82%), Huizhou Second Nuclear Power (100%), Huizhou Third Nuclear Power (100%), and Zhanjiang Nuclear Power (100%), with the total transaction price based on an asset evaluation report [4][5] - The financial performance of CGN showed a decline in the first half of 2025, with revenue of 39.167 billion yuan, a decrease of 0.53% year-on-year, and a net profit of 5.952 billion yuan, down 16.30% year-on-year, attributed to falling transaction electricity prices [7][8] - Despite the decline in net profit, CGN's total electricity generation increased, with a total of 113.36 billion kWh generated in the first half of 2025, representing a year-on-year growth of 6.93% [8]

Summary of Key Points from the Conference Call Company Overview - The conference call pertains to China General Nuclear Power Corporation (CGN) and its operations in the nuclear power sector. Core Developments - **Project Updates**: - Huizhou Unit 3 achieved First Concrete Date (FCD) on June 10, 2025, marking the start of full construction [2] - Lufeng Unit 6 completed dome lifting on July 14, 2025, and entered equipment installation [2] - Huizhou Unit 2 completed its hot functional test on July 30, 2025, preparing for commercial operations [2] - A-share convertible bonds were issued on July 25, 2025, to support nuclear projects and optimize capital structure [2] - **Financial Performance**: - On-grid power generation reached 1,133.6 billion kWh in H1 2025, up 6.93% YoY [5] - Revenue was RMB 39.167 billion, down 0.5% YoY, with net attributable profit at RMB 5.952 billion, down 16.3% YoY [5] - Electricity sales revenue increased by 0.9% YoY to RMB 306.58 billion, but overall growth was hindered by declining market-based tariffs [21] Industry Context - **Electricity Consumption**: - China's electricity consumption rose by 3.7% YoY in H1 2025, totaling approximately 4.84 trillion kWh, driven by high summer temperatures [6] - Non-fossil energy sources accounted for over 60% of installed capacity and contributed 43.1% to total power generation, up 3.7 percentage points YoY [6] - **Nuclear Power's Role**: - Nuclear power represented about 1.7% of China's total installed capacity but contributed around 5.2% of total power generation as of June 2025 [7] - The average utilization hours for nuclear facilities increased by 167 hours YoY, indicating high stability [7] Safety and Operational Management - The company maintained zero incidents classified as Level 2 or above on the International Nuclear Event Scale in H1 2025 [9] - 91.07% of managed nuclear power units reached the world's top quartile advanced level based on WANO key performance indicators [10] Financial Strategy and Market Dynamics - **Market-Based Tariffs**: - The average market-based tariff in Guangdong was approximately 0.33 RMB per kWh, down by 6.5 RMB cents YoY [32] - The company is actively negotiating with provincial authorities regarding tariff adjustments to mitigate revenue impacts [33] - **Acquisitions and Capital Expenditures**: - The company approved a cash acquisition of equity interests in four companies, including Huizhou Nuclear Power, expected to complete by year-end [4] - Future capital expenditures will primarily be funded through bank loans, with minimal additional capital anticipated for completed projects [34] Environmental Impact - The company's operations contributed to a reduction of approximately 34.09 million tons of standard coal consumption and about 107 million tons of CO2 emissions, supporting national carbon neutrality goals [14] Future Outlook - The company plans to enhance research on strategic issues and improve operational management to ensure safe production during peak demand seasons [25] - Anticipated stable macroeconomic growth is expected to drive higher electricity consumption demand in H2 2025, benefiting nuclear unit generation [26] Conclusion - The company is positioned to leverage ongoing projects and market dynamics while focusing on safety, operational efficiency, and environmental sustainability to navigate the challenges and opportunities in the nuclear power sector.

Core Insights - The profitability of nuclear power companies in China is increasingly affected by the trend of market-oriented electricity trading, with both China General Nuclear Power Group (CGN) and China National Nuclear Power Co., Ltd. (CNNP) reporting declines in net profits for the first half of the year [1][2] Financial Performance - CGN's net profit for the first half of the year decreased by 16.3% to 5.952 billion yuan, marking the first decline in net profit for the same period since 2019 [1] - CNNP's net profit slightly fell by 3.66% to 5.666 billion yuan, showing a significant slowdown in growth compared to the past five years [1] - The decline in profits for both companies is attributed to falling electricity market prices due to the accelerated construction of the electricity spot market and the full entry of renewable energy [1][2] Market Dynamics - The main business of CGN and CNNP includes the construction, operation, and management of nuclear power plants, with profitability primarily derived from electricity sales [2] - The average market settlement price for CGN's operating nuclear power units decreased by approximately 8.23% compared to the same period in 2024, despite the approved electricity price remaining unchanged [2] - Both companies reported an increase in the total electricity generated by their operating nuclear units, with CNNP's total electricity generation rising by 12.13% to 93.551 billion kWh and CGN's increasing by 6.93% to 113.36 billion kWh [2] Renewable Energy Integration - CNNP's net profit from nuclear and related businesses grew by 9.48% to 5.322 billion yuan, but the overall net profit declined due to significant holdings in wind and solar energy assets [3] - The installed capacity of renewable energy held by CNNP increased by nearly 50% to 33.225 million kW, with renewable energy electricity generation rising by 35.81% to 21.553 billion kWh [3] - The decline in net profit for CNNP's subsidiary, which holds renewable assets, was 31.7% to 1.14 billion yuan, influenced by lower market settlement prices and increased depreciation [3] Strategic Responses - To address the risks associated with market price fluctuations, CGN is focusing on detailed electricity marketing strategies tailored to specific provinces and enhancing marketing efforts to attract quality customers [4][5] - CNNP plans to deepen its engagement in regional electricity markets through independent electricity sales companies and aims to optimize trading strategies while promoting the synergy between nuclear and renewable energy [4][5] - Both companies are enhancing their internal electricity marketing management systems and strengthening their talent development to adapt to the expanding market [5] Diversification Efforts - CGN is actively developing nuclear energy for heating, having established the first clean heating project in Northeast China, which has been operational for three heating seasons [5] - CNNP is expanding into industrial steam supply, with the first industrial nuclear steam supply project, "Heqi No. 1," successfully supplying over 3 million tons of steam since its launch [5]

Group 1: Economic and Industry Overview - In the first half of 2025, China's economy maintained stable operation, with a rebound in overall electricity consumption growth [1] - Non-fossil energy installed capacity exceeded 60% in the first half of 2025, indicating ongoing progress in the green and low-carbon energy transition [2] Group 2: Company Performance and Projects - The company managed nuclear power units generated approximately 113.36 billion kWh of electricity, a year-on-year increase of 6.93% [2] - The company completed 8 annual overhauls and 2 ten-year overhauls in the first half of 2025, totaling about 414 days, which is a reduction of approximately 109 days compared to the previous year [3] - The company’s revenue for the first half of 2025 was RMB 39.167 billion, a decrease of 0.5% year-on-year, while net profit attributable to shareholders was RMB 5.952 billion, down approximately 16.3% [4] Group 3: Environmental Impact - The company’s operations contributed to a reduction of approximately 34.09 million tons of standard coal consumption and a decrease of about 10.7 million tons of CO2 emissions, supporting national "dual carbon" goals [3] Group 4: Market and Financial Insights - The company’s market-based transaction ratio was approximately 56.1% in the first half of 2025, slightly up from the previous year, although the average market transaction price decreased due to overall market price declines [4] - Cash inflow from operating activities was RMB 46.68 billion, an increase of 1.3% year-on-year, indicating stable cash flow [4] Group 5: Future Plans and Acquisitions - The company plans to expedite the acquisition of shares in Huizhou Nuclear Power and three other companies, aiming to complete the transaction by the end of 2025 [2][6] - The company is preparing for the 2026 electricity market transactions by closely monitoring market conditions and enhancing marketing efforts [4]