Summary of Conference Call Notes Industry Overview - The power equipment industry is underperforming due to multiple factors including delays in UHV projects, risks associated with new energy installations, price reductions in grid procurement, and weak industrial investment [1][3] - The anticipated approval for UHV DC lines in early 2025 is five lines, with two to four AC lines expected. However, only one AC line has been approved in the first half of the year, which is below expectations [1][4] Key Insights and Arguments - UHV construction aims to address the insufficient transmission channels caused by the rapid expansion of new energy sources, indicating a demand for advanced construction. However, the expectation of 5 to 6 DC lines annually during the 14th Five-Year Plan may be difficult to sustain [1][5] - The development of nuclear power significantly boosts the demand for grid equipment and transmission channel construction. Since 2022, over 10 nuclear power units have been approved annually, enhancing the value and profitability of transmission and transformation equipment [1][6] - New nuclear projects in inland areas will further promote the demand for supporting transmission and AC ring networks, presenting growth opportunities for related companies [1][6] Company-Specific Insights - Companies like XJ Electric and Xi'an Xikai are expected to benefit directly from UHV DC construction due to their involvement with DC converter valve-related businesses, making them more resilient in the short term [1][7] - For a more stable investment approach, companies such as Pinggao and NARI are recommended as they are less affected by negative industry impacts. Pinggao currently holds 16 interval orders, with 14 being competitive nuclear projects, and maintains a steady delivery rhythm for 750 kV [2][7] - Domestic solar energy companies are also showing slightly better performance due to mandatory installation power forecasts, suggesting potential investment opportunities [2][8] Additional Important Points - The overall market sentiment for the UHV sector has been negative since October 2024, with companies like XJ Electric and Pinggao experiencing nearly a 20% decline in 2025. This downturn is attributed to underwhelming performance expectations and various adverse factors affecting the power equipment industry [3][4] - The synchronization between UHV construction and new energy development is not complete, as UHV projects are required to catch up with the previous pace of new energy expansion [5][6]

Investment Rating - The report maintains a "Buy" rating for the following companies: Guodian NARI (国电南瑞), Pinggao Electric (平高电气), China XD Electric (中国西电), and XJ Electric (许继电气) [8][9]. Core Insights - The approval of the Southeast Tibet to Guangdong-Hong Kong-Macao ultra-high voltage (UHV) transmission line marks an upward cycle for the UHV sector, with an expected investment of 53.168 billion yuan and a total transmission capacity of 10GW [1]. - The "Three North" photovoltaic desertification control plan aims to add 253GW of solar capacity by 2030, indicating sustained growth in renewable energy infrastructure [2]. - The acceleration of UHV project construction is evident, with multiple projects expected to be operational within the year, enhancing the overall market dynamics [3]. - The UHV market exhibits high barriers to entry and profitability, with significant value in components such as converters and transformers, indicating a concentrated competitive landscape [4]. Summary by Sections UHV Projects and Approvals - The National Development and Reform Commission approved the Southeast Tibet to Guangdong-Hong Kong-Macao UHV project, with a total length of 2681.3 kilometers and dynamic investment of 53.168 billion yuan [1]. - It is anticipated that 5-6 additional UHV direct current lines will be approved in 2025, with key equipment suppliers likely to benefit significantly from this trend [1]. Photovoltaic Development - The "Three North" photovoltaic desertification control plan has been approved, targeting the addition of 253GW of solar capacity by 2030 and the reclamation of 10.1 million acres of desertified land [2]. - The ongoing construction of large-scale wind and solar bases in desert areas is expected to drive long-term demand for UHV transmission [2]. Market Dynamics and Company Performance - The UHV market is characterized by high profit margins and a limited number of participants, with significant revenue potential for core equipment manufacturers [4]. - Guodian NARI is projected to generate net profits of 1.15-1.64 billion yuan from each UHV project, while Pinggao Electric and China XD Electric are also expected to see substantial profit increases due to the anticipated surge in UHV orders [5]. - The report highlights the strong growth potential for these companies, with expected net profit growth rates of 23.8% CAGR from 2025 to 2027 for XJ Electric [10].

Core Insights - Deep-sea technology is entering a "policy-driven → technological breakthrough → industrial expansion" golden period, similar to the initial stage of the low-altitude economy in 2024 [1][14] - The performance support for deep-sea technology is stronger than that of the early low-altitude economy, and both belong to national strategic emerging industries, indicating a potential continuation of the market trend [1][14] Industry Value Dimensions - **Resources**: Deep-sea resources include abundant energy, minerals, and biological resources, with over 70% of major oil and gas discoveries coming from depths exceeding 1,000 meters [2][4] - **Military**: The militarization of deep-sea regions is accelerating due to global competition for resources, with major military powers developing capabilities for deep-sea operations [2][4] - **Scientific Research**: The deep sea serves as a "natural laboratory" for studying life origins, geological evolution, and climate change, with significant potential yet to be explored [2][4] - **Economic Impact**: China's marine economy is projected to exceed 10 trillion yuan in 2024, with deep-sea technology as a core driver [3][4] Deep-Sea Technology Industry Chain - **Upstream**: Focuses on basic materials and core components, requiring high strength and corrosion resistance due to deep-sea conditions [6] - **Midstream**: Involves equipment manufacturing and system integration, with underwater robots being a key area of development [6] - **Downstream**: Applications include resource development, marine observation, and military defense [7] Key Segments of Deep-Sea Technology - **Underwater Operations Equipment**: The global UUV market is valued at 57 billion yuan in 2023, expected to grow to 85 billion yuan by 2028, with a CAGR of 8.32% [10] - **Marine Engineering Equipment**: The marine engineering sector is experiencing an upturn, benefiting major companies like Zhenhua Heavy Industries and China Shipbuilding [10] - **Offshore Power Generation**: Floating wind and solar power generation are emerging trends, with high entry barriers and promising market potential [11] - **Marine Resource Development**: Offshore oil and gas production is becoming a major source of China's energy increase, with significant reserves in the South China Sea [12] - **Marine Aquaculture**: The marine fishery sector is a crucial part of China's economy, with substantial growth potential in deep-sea aquaculture [13] Investment Logic and Stock Analysis - Deep-sea technology is positioned for growth through a cycle of policy support, technological advancements, and industrial expansion, mirroring the low-altitude economy's development path [14] - Relevant stocks include Zhongtian Technology, Dongfang Cable, and China Shipbuilding, among others [14]

Group 1 - The company has approved a profit distribution plan for the year 2024, which includes a cash dividend of 1.50 yuan per 10 shares, with no bonus shares issued [1][2] - The total number of shares for the distribution is 1,018,749,309, following the cancellation of 125,000 repurchased shares [1][2] - The dividend will be distributed to all shareholders registered by the cut-off date of July 8, 2025, with the ex-dividend date set for July 9, 2025 [2] Group 2 - The cash dividend will be subject to different tax treatments based on the type of shareholder, with specific rates for Hong Kong investors and mainland investors [1][2] - The company will not withhold individual income tax for certain shareholders, and tax obligations will be calculated based on the holding period upon the transfer of shares [1][2] - Shareholders can consult the company for any inquiries regarding the dividend distribution process [2][3]

1.公司 2024 年年度利润分配方案已获 2025 年 5 月 12 日召开的 2024 年度股 东大会审议通过，以 1,018,874,309 股为基数，向全体股东每 10 股派发现金红 利 1.50 元（含税），送红股 0 股（含税），不以公积金转增股本。 证券简称：许继电气 证券代码：000400 公告编号：2025-28 许继电气股份有限公司 2024 年年度分红派息实施公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 许继电气股份有限公司（以下简称"公司"、"本公司"）2024 年年度利 润分配方案已获 2025 年 5 月 12 日召开的 2024 年度股东大会审议通过，现将分 红派息事宜公告如下： 一、股东大会审议通过利润分配及资本公积金转增股本方案等情况 自董事会审议利润分配预案后至实施利润分配方案的股权登记日期间，若公 司总股本因股份回购、股权激励等原因发生变动的，依照未来实施权益分派时股 权登记日的总股本为基数实施，并保持上述分配比例不变对总额进行调整。 2.自分配方案披露至实施期间，因限制性股票激励计划回购注销，公司股本 减少 12 ...

Summary of Conference Call Records Industry Overview - The conference call primarily discusses the **power grid sector**, focusing on high voltage direct current (HVDC) projects, digital investments in distribution networks, and the export of electrical equipment. Key Points and Arguments HVDC Projects and Investments - The acceleration of HVDC projects is noted, with an expected approval for **3-4 new lines** this year, leading to a **120 billion** yuan increase in converter valve bidding, which is a **100% year-on-year increase** [1][2][4]. - The State Grid's fixed asset investment is projected to increase by **200 billion** yuan to **7,000 billion** yuan, reflecting a **12% year-on-year growth**, primarily directed towards distribution network upgrades and digital investments [2][5]. Digital Investments in Distribution Networks - Digital investments are focused on smart integration terminals, distributed metering installations, and AI technology applications, enhancing the ability to perceive status information and manage power outages [3][6][9]. - The overall investment growth in distribution networks is expected to reach nearly **10%** this year, driven by the need for upgrading old equipment and improving reliability in urban and rural areas [5][6]. Price Trends and Profitability - Initial price reductions due to regional joint procurement are not expected to be sustainable, with transformer prices dropping by an average of **10%** and some products seeing reductions of **20-30%** [7]. - The gross margin for transformers has decreased from **25% to 20%**, indicating potential quality and safety issues if prices continue to decline [7]. Export Performance - The export of electrical equipment remains robust, with transformer exports increasing by **34%** year-on-year in the first five months, and high voltage switchgear exports rising by approximately **25%** [11]. Company-Specific Insights - **XJ Electric** anticipates a **15-20%** net profit growth in 2025, driven by margin improvements and revenue increases [13]. - **Pinggao Group** expects a **25%** net profit growth, supported by increased deliveries and reduced losses in international business [14]. - **China West Electric** projects a **25%** net profit growth this year, with a focus on improving management fees and gross margins [16][18]. - **State Grid South** expects its HVDC revenue to double to around **30 billion** yuan by 2025, with significant contributions from overseas projects [19]. Future Growth and Market Opportunities - The conference highlights the potential for significant growth in the **overseas market**, particularly in regions like Southeast Asia and the Middle East, where demand for smart grid solutions is increasing [11][32]. - Companies are encouraged to focus on undervalued stocks and those with high dividend yields, such as **Samsun Medical** and **Sifang Co.**, to capitalize on the ongoing market dynamics [12][27][30]. Conclusion - The power grid sector is poised for growth driven by HVDC project approvals, digital transformation investments, and strong export performance. However, companies must navigate pricing pressures and maintain product quality to sustain profitability in a competitive landscape [34].

为助力项目顺利地按时落地，工作人员面对工程现场的复杂环境和各种突发状况，争分夺秒进行解决完善。同时，全新产品 的初次安装，需要顶着缺乏经验的巨大压力，兼顾工艺流程和装配效率，保证产品性能，这无疑是一次重大的考验。尽管困 难重重，但经过多日鏖战，最终履险如夷，成功完成交付，用智慧与坚韧点亮了这座城市新的电力枢纽。 技术攻坚，破解行业难题 6月28日，许继电气所属德理施尔公司自主研发的MISELA-40.5/4000-40气体绝缘开关设备，在宁夏宁东绿科新能源有限公司 现代煤化工产业绿电园区复合光伏项目330千伏输变电工程中顺利投入运行，实现了其全球首台套的工程应用，标志着许继电 气在大容量气体绝缘开关设备领域取得了重大突破，不仅推动了开关设备的创新进步，更引领了行业技术的发展方向。 勠力同心，实现圆满交付 宁夏宁东绿科新能源有限公司现代煤化工产业绿电园区复合光伏项目330千伏输变电工程，位于宁夏灵武市宁东镇境内，共包 含三期工程，德理施尔公司为该项目提供了共计112台40.5千伏气体绝缘开关设备。 其中主变进线柜采用MISELA-40.5/4000-40气体绝缘开关设备，这是40.5千伏4000安等级气体绝缘开 ...

Investment Rating - The report maintains a "Positive" investment rating for the industry [5] Core Viewpoints - The report emphasizes the expected acceleration in the approval of ultra-high voltage (UHV) projects in the second half of 2025, with several key transmission corridors likely to be approved [10][15] - The current pace of construction for UHV direct current projects is increasing, with several projects nearing completion and others in the early stages of construction [15][16] - The report highlights a significant potential for equipment bidding in the second half of 2025, estimating a total bidding volume of approximately 55 billion yuan, with a substantial portion allocated for UHV converter valve equipment [28][30] Summary by Sections UHV Project Approvals - The 2025 National Energy Work Conference proposed the active promotion of several UHV transmission corridors, indicating a likely increase in project approvals in the latter half of 2025 [10] - Currently, only two projects have received approval, but expectations are high for a surge in approvals later in the year [10][15] UHV Direct Current Projects - Several UHV direct current projects are nearing completion, with the Jinshang-Hubei and Longdong-Shandong projects already operational [15] - Projects such as the Ningxia-Hunan and Shaanxi-Anhui are in advanced stages of construction, with expectations for operational readiness by 2026 [15][16] UHV Alternating Current Projects - The report notes that UHV alternating current projects are also in a peak construction phase, with several projects expected to commence in 2025 [16][18] Equipment Bidding Trends - In the first half of 2025, equipment bidding has been relatively low, totaling 2.48 billion yuan, while material bidding reached 17.87 billion yuan [25] - The report anticipates a rapid increase in bidding activity in the second half of 2025, driven by the approval of multiple UHV projects [28][30] Market Dynamics - The report indicates that the UHV equipment market remains concentrated, with leading companies expected to benefit from increased order volumes as the market expands [35]

Investment Rating - The report maintains a "Buy" rating for key companies in the electric equipment and new energy sectors, including CATL, Keda, and others [5]. Core Insights - The electric equipment and new energy sector saw a weekly increase of 5.11%, outperforming the Shanghai Composite Index, with the new energy vehicle index rising by 6.53% [1]. - In the photovoltaic sector, domestic installations reached 197.85 GW from January to May 2025, a year-on-year increase of 149.97% [3][30]. - The report highlights a significant investment growth in power grid projects, with a 19.8% year-on-year increase in investment from January to May 2025 [4][44]. Summary by Sections New Energy Vehicles - Xiaomi launched its first luxury high-performance SUV, the YU7, featuring advanced design and technology, including a 22000rpm motor and a 3.23-second acceleration time [2][10]. - The vehicle's interior is designed for comfort, with high-quality materials and advanced noise reduction features [10][15]. Photovoltaic Sector - The report notes a substantial increase in photovoltaic installations, with May 2025 alone contributing 92.92 GW, marking a 388.03% year-on-year increase [3][30]. - The report anticipates a potential decline in new installations due to changes in grid connection policies and market pricing [3][30]. - The photovoltaic supply chain is experiencing price declines, particularly in silicon materials and components [33][34]. Electric Equipment and Industrial Control - National statistics indicate that the average utilization of power generation equipment was 1249 hours from January to May 2025, a decrease of 132 hours year-on-year [4][44]. - Investment in power grid projects reached 2040 billion yuan, reflecting a 19.8% increase compared to the previous year [4][44]. - The report emphasizes the importance of monitoring key companies such as CATL, Keda, and others for potential investment opportunities [4][44].

Core Viewpoint - Kangjin Electric is facing challenges with increasing revenue but declining profits, as indicated by a significant drop in net profit for 2024 despite revenue growth [1][5]. Company Overview - Established in 2006, Kangjin Electric is a technology-driven integrated power equipment provider and smart energy management solutions provider [3]. - The company shifted its strategy towards smart renewable energy solutions since 2016, participating in the "source-grid-load-storage" system integration [3]. - Kangjin Electric operates three production facilities in Zhuhai and Ganzhou, employing over 1,400 staff, with approximately 17.1% being R&D and technical engineers [3]. Business Segments - The company has two main business segments: smart distribution network equipment and smart renewable energy business solutions [3]. - The smart distribution network equipment segment includes ring main units, transformers, low and high voltage complete equipment, and distribution automation terminal equipment [3]. Financial Performance - Revenue for Kangjin Electric from 2022 to 2024 was approximately 638 million, 824 million, and 969 million yuan, respectively [5]. - Net profit for the same period was 51.78 million, 56.25 million, and 38.34 million yuan, with a notable 31.83% decline in net profit for 2024 [5]. - The company's gross margin has been declining, with gross profits of 186 million, 230 million, and 246 million yuan, corresponding to gross margins of 29.1%, 27.9%, and 25.4% [5]. Market Position - According to Frost & Sullivan, Kangjin Electric ranks third in the Chinese market for ring main unit sales, holding a market share of 4.4% in 2024 [4]. - Competitors such as Xuchang Electric and Teruid have significantly larger revenue and profit scales compared to Kangjin Electric [5][6]. Listing History - Kangjin Electric has changed its listing plans multiple times, initially aiming for the Shenzhen Stock Exchange in 2020, then switching to the Beijing Stock Exchange, and now applying for a listing on the Hong Kong Stock Exchange [7][8]. - The company aims to raise funds for a new production base in Ganzhou, a new R&D center in Shenzhen, debt repayment, and general corporate purposes [10].