Summary of Su Yan Jing Shen Conference Call Company Overview - Su Yan Jing Shen is actively advancing multiple energy storage projects, including collaborations with China National Petroleum Corporation (CNPC) and Jiangsu Guoxin, aiming to diversify energy storage methods and enhance overall profitability [2][3] Strategic Goals - The company aims to achieve a rock salt production capacity of 12 million tons, gas storage capacity of 5 billion cubic meters, operating revenue of 20 billion yuan, and tax revenue exceeding 3 billion yuan during the 14th Five-Year Plan period [2][3] Financial Performance - As of the first half of 2025, total assets were 9.99 billion yuan, net assets attributable to shareholders were 6.079 billion yuan, operating revenue was 2.358 billion yuan, and total profit was 415 million yuan, reflecting a year-on-year decline of 28% [2][3] - Earnings per share were 0.4404 yuan, down 28.86% year-on-year [5] Product Sales and Market Dynamics - Calcium chloride sales declined due to reduced domestic and international demand, with a 20% drop in sales volume [6] - The company is expanding into the liquid calcium market and developing new de-icing agents, with liquid calcium having a higher gross margin than solid calcium chloride [7][8] Project Updates - The Zhang Ying gas storage facility has commenced operations, with plans to inject 190 million cubic meters of base gas in 2025, of which 144 million cubic meters have been completed [12] - The project is expected to be completed by the end of the year, with a signed contract for 200 million cubic meters of working gas, anticipating over 100 million yuan in revenue and approximately 10 million yuan in profit [14] Future Projects and Capacity Expansion - The company plans to construct additional gas storage projects, including the Huai'an 10 billion cubic meter storage project and the Yanghuai mining area storage project, targeting a total capacity of 5 billion cubic meters by 2030 [4][22][23] - The Zhang Ying storage facility is strategically located in a high-demand area, with Jiangsu's natural gas consumption projected at 40 billion cubic meters in 2024 [4][17] Revenue and Cost Structure - The revenue model includes injection fees, extraction fees, and storage fees, with expected annual income from the working gas contract exceeding 100 million yuan [14] - The cost of natural gas storage is approximately 0.65 yuan per cubic meter, with downstream customers able to bear the pricing [26] Research and Development - R&D expenses are typically higher in the second quarter due to project initiation timelines, with overall annual R&D costs remaining stable [30] Investment and Returns - The investment in the compressed air energy storage project is expected to yield returns reflected in next year's financial statements, with projected annual equity investment returns of approximately 70 million yuan [31] Conclusion - Su Yan Jing Shen is positioned to enhance its market presence and profitability through strategic projects, diversification of product offerings, and a focus on innovative energy storage solutions, despite facing challenges in sales and profit margins.

Core Viewpoint - Su Yan Jingshen is facing market challenges but is implementing lean management and technological improvements to enhance efficiency and reduce costs, while also focusing on the development of new growth areas in the salt cavern comprehensive utilization industry. Financial Performance - In the first half of 2025, the company achieved total revenue of 2.358 billion yuan and a net profit of 344 million yuan, with basic earnings per share of 0.44 yuan [1] - The total profit decreased by 28.40% year-on-year to 416 million yuan, while the net cash flow from operating activities was 156 million yuan [1] - The total assets reached 9.990 billion yuan, with accounts receivable amounting to 328 million yuan [1] Cost Management and Efficiency - The company reduced maintenance costs by 31.96 million yuan and saved 1.59 million yuan in electricity costs through optimization of boiler desulfurization pump operations [1] - The average procurement prices for coal, coke, and stone decreased by 17.3%, 24.32%, and 16.73% respectively [1] - The cost per ton of products from the subsidiary Ruihong Salt Industry decreased by 27.41 yuan year-on-year [1] Strategic Development - Su Yan Jingshen is actively promoting the salt cavern comprehensive utilization industry, with significant mining rights in Huai'an, including the Yanghuai salt mine with over 3 billion tons of reserves [2] - The Zhangxing gas storage project has commenced production, with a cumulative injection of 34.35 million cubic meters of gas [2] - The company is collaborating with Jiangsu Guoxin to build a 600MW salt cavern compressed air energy storage project, expected to be operational by July 2025 [2] Innovation and R&D - The company is committed to technological innovation, with multiple provincial-level R&D platforms and ongoing applications for high-tech enterprise recognition and provincial key laboratory establishment [2] - New product developments include five types of refined rock salt and instant snowflake salt, along with several technological achievements [2] - The company has filed 13 patent applications and received 21 patents, focusing on key technologies for salt cavern hydrogen and helium storage [2] Future Outlook - Over the next 3 to 5 years, the company aims to become a new manufacturing and renewable energy enterprise, with a projected net profit exceeding 3 billion yuan [3] - Plans include increasing salt chemical product capacity to over 10 million tons and developing a gas storage capacity of 10 billion cubic meters [3] - The Zhangxing gas storage project is expected to be fully completed by 2026, with a total design capacity of 3.126 billion cubic meters by 2030 [3] - The company has unveiled a technology center for original technology in salt cavern gas storage, addressing global challenges in constructing large gas storage facilities [3]

Core Insights - The Su Yan Jing Shen Academy's achievements in deep underground energy storage were presented at a conference, marking a significant advancement in China's energy storage capabilities [1] - The development of the "Chinese solution" for salt cavern gas storage has transitioned the traditional salt chemical industry towards a new salt cavern energy storage industry [1] - The company aims to accelerate the restructuring of the "salt + energy storage" industry and foster innovation in technology and standards [1] Group 1 - The Su Yan Jing Shen Academy's deep underground energy storage results were developed over more than 10 years and represent a breakthrough in the field [1] - The conference included participation from experts, scholars, and government officials, highlighting the collaborative effort in advancing this technology [1] - The chairman of the group emphasized the importance of collaborative research and innovation to achieve original results and promote the industrialization of gas storage [1] Group 2 - The company is focused on building a comprehensive innovation ecosystem that includes basic research, technological breakthroughs, and talent support [1] - There is a goal to accelerate the industrialization and scaling of gas storage facilities, targeting a hundred billion yuan gas storage industry [1] - The initiative aims to enhance the efficiency of gas storage and contribute to the overall energy transition in China [1]

□ 本报记者 张宣 杨易臻 数千万年前形成的盐矿，经过开采后在地下形成一个个盐穴。如今，随着新型储能技术的发展，这些原 本闲置的地下盐穴，正在化身为储存能源的巨型"仓库"。 近日，由中盐集团与清华大学等单位合作的"大规模盐穴储氢"主体工程在常州正式开工建设。这标志着 我国在基于盐穴的大规模储氢领域迈出了关键一步。 为什么用盐穴来储氢？为何选择落地常州？带着这些疑问，《科技周刊》记者采访到该项工程的氢能和 储能专家。 盐穴：地质演化馈赠的天然储库 "大规模盐穴储氢"项目属于国家重点研发计划，由中盐集团和清华大学合作，联合中国地质大学（北 京）、中国科学院理化技术研究所、天津大学、中国矿业大学等多家单位共同开展。该项目将形成具有 自主知识产权的盐穴储氢全套技术体系，以推动盐穴储氢的规模化产业应用。 记者注意到，储氢的载体是盐穴。那什么是盐穴？"所谓盐穴，是指利用水溶开采方式在地下较厚的盐 层或盐丘中形成的人造地下洞穴。这些人工构建的空腔具有良好的密封性和稳定性，成为石油、天然 气、压缩空气等能源储存的理想场所。"江苏省地质调查研究院正高级工程师刘志宏解释说。 盐穴具体是如何形成的？他告诉《科技周刊》记者，可食用的 ...

Core Viewpoint - Huayuan Securities issued a report on July 31, giving a "buy" rating to Su Yan Jingshen (603299.SH, latest price: 10.48 yuan) based on several positive factors related to the company's performance and market position [2] Group 1: Company Strengths - The company is a leading player in the salt industry, focusing on "salt + energy storage," characterized by low debt and high cash flow, resulting in stable profitability [2] - The integrated development of salt, alkali, and calcium products allows for stable pricing and potential growth in salt product sales [2] - Jiangsu province has the highest natural gas demand in the country, with strong seasonal peak-shaving storage needs [2] Group 2: Growth Opportunities - The rapid development of salt cavern gas storage business is expected to lead to increased storage capacity, positioning the company for a sustained growth phase [2] - The company is advancing projects in compressed air energy storage and small molecule gas storage, continuously exploring the utilization of salt cavern resources [2]

Investment Rating - The investment rating for the company is "Buy" (首次) [5] Core Views - The company is a leading player in the salt chemical industry in East China, focusing on "salt + energy storage," with low debt and stable cash flow [5] - The core business includes salt and salt chemical products, contributing 85% of revenue gross profit, benefiting from stable product pricing and declining coal prices [5] - The company is actively developing salt cavern storage for natural gas and compressed air, which are expected to significantly contribute to performance in the next five years [5][6] - The company plans to increase production capacity significantly by 2030, with a projected total capacity of 12 million tons for salt and salt chemical products [5] - The company is also expanding into compressed air energy storage and small molecule gas storage projects, enhancing its growth potential [8] Summary by Sections Market Performance - The closing price as of July 31, 2025, is 10.48 yuan, with a market capitalization of 8,191.78 million yuan [3] Financial Data - The company has a total share capital of 781.66 million shares and a debt-to-asset ratio of 37.23% [3] - The net asset value per share is 7.97 yuan [3] Profit Forecast and Valuation - Revenue projections for 2023 to 2027 are 5,682 million, 5,344 million, 5,560 million, 6,728 million, and 7,727 million yuan respectively, with a growth rate of 4.03% in 2025 [7] - The net profit attributable to shareholders is forecasted to be 738 million, 769 million, 705 million, 917 million, and 1,130 million yuan from 2023 to 2027, with a significant increase expected in 2026 and 2027 [7] - The price-to-earnings ratio (P/E) is projected to decrease from 11.09 in 2023 to 7.25 in 2027, indicating potential for valuation growth [7] Business Development - The company is planning to invest up to 1.8 billion yuan in developing a brine salt project, which is expected to increase solid salt production by 3 million tons per year [5] - The company is also pursuing partnerships for compressed air energy storage and small molecule gas storage projects, indicating a strategic expansion into new business areas [8]

Group 1 - The company held a performance briefing on May 22, 2025, to discuss its 2024 annual and Q1 2025 results, with key executives present for investor interaction [1] - The company reported a revenue of 5.344 billion yuan for 2024, a decrease of 5.95% year-on-year, while net profit attributable to shareholders increased by 4.15% to 769 million yuan [3][4] - The company aims to enhance its long-term core competitiveness through a strategic transformation towards a "salt + energy storage" industry model [3] Group 2 - The investment in the air energy storage project by Jiangsu Guoxin Su Yan Storage Power Co., Ltd. is approximately 3.74 billion yuan, with a planned capacity of 300MW for the first phase, expected to commence production in July 2025 [2] - The company maintains a cash dividend payout ratio of 45.04% for 2024, with cumulative cash dividends of 960 million yuan from 2022 to 2024, indicating a commitment to shareholder returns [4] - The company is focusing on the development of its "traditional, emerging, and future" industries, particularly in the salt cavern energy storage sector, to create new business opportunities and enhance profitability [3]

Core Insights - The "Salt Cavern Hydrogen Storage Demonstration Project" and "Million Cubic Meter Hydrogen Storage Demonstration Project" were inaugurated, marking a significant step in utilizing salt cavern resources in China [1] - Salt caverns are recognized for their excellent sealing performance, large storage capacity, low cost, and high safety, making them a promising technology for hydrogen storage [1] - The demonstration projects are located in Pingmei Shenma Group, leveraging its abundant salt field resources and prior experience in salt cavern energy storage [1] Company Overview - Pingmei Shenma Group possesses 6.62 square kilometers of salt field resources, having extracted over 20 million tons of salt from 13 brine wells, with an annual physical volume capacity exceeding 1 million cubic meters [1] - The company has collaborated with China National Petroleum Corporation and Henan Investment Group, gaining experience in salt cavern gas storage, which supports the construction of the national salt cavern hydrogen storage demonstration project [1] Project Details - The demonstration project is set to commence construction in November 2024 and will be the first large-scale deep salt cavern hydrogen storage project in Asia, aiming to store 1.5 million cubic meters of hydrogen [1] - The project is a collaboration between the Wuhan Institute of Rock and Soil Mechanics of the Chinese Academy of Sciences and Pingmei Shenma Group, with the Joint Salt Chemical Company responsible for its implementation [1] - The project has completed geological evaluation, process design, and drilling construction, and is currently progressing with cavity operation [2] - It has been incorporated into the "Deep Earth National Science and Technology Major Project" and the national key research and development plan for "Key Technologies for Geological Hydrogen Storage Applicability and Safety" [2] - The company will also participate in the formulation of national and industry standards related to the safety technology of salt cavern hydrogen storage [2]

Group 1 - The event "Ancient Brine, New Life, Intelligent Manufacturing Health" was hosted by Luyin Investment and its subsidiary Shandong Luyin Group, showcasing the integration of traditional salt-making techniques with modern intelligent manufacturing [1] - Shandong province is a key player in the national salt industry, with policies aimed at optimizing the development environment and promoting the province from a major salt producer to a strong salt producer [1] - In 2024, Shandong is expected to lead the country in the production of major salt products, including raw salt, sea salt, and bromine [1] Group 2 - Luyin Group has been innovating to promote industrial transformation and upgrading, establishing a leading "smart demonstration salt field" in the national sea salt industry through various technological innovations [2] - The company is exploring new paths for salt industry development by integrating renewable energy, such as setting up photovoltaic panels in salt fields to enhance land utilization and create new economic growth points [2] - Luyin Group is also advancing the construction of salt cavern energy storage to develop new growth opportunities [2]

Core Viewpoint - The news highlights the advancements and innovations in the salt industry, particularly focusing on the operations of the Luyin Investment's salt segment, the Shouguang City salt field, and the production of high-value salt products like "salt flower" [2][3][4]. Group 1: Industry Overview - Shandong Province is a major sea salt producer in China, with Shouguang City having a rich history in salt production and abundant underground brine resources, estimated at 2.6 billion cubic meters [3]. - The salt field has an area of approximately 130 square kilometers and an original salt production capacity of around 3 million tons, accounting for 12.5% of the national sea salt capacity [3]. - The salt industry is evolving towards healthier, functional, and high-end salt products, driven by rising consumer health awareness and living standards [4][6]. Group 2: Product Innovations - The "salt flower," a high-end salt product, is produced in limited quantities, with less than 500 grams obtainable from every 50 square meters of salt field annually [4]. - The demand for mid-to-high-end salt products is increasing globally, with a stable apparent demand for table salt in China at around 11.5 million tons [4]. Group 3: Technological Advancements - The salt field is implementing smart technologies to innovate production methods, including remote monitoring, automated operations, and intelligent weather forecasting [6]. - The Shandong provincial government is promoting digital, networked, and intelligent production methods to enhance the salt industry [6][7]. Group 4: Market Position and Future Prospects - In 2024, Shandong is expected to maintain its leading position in salt production, with original salt and sea salt production both ranking first nationally [7]. - Luyin Investment's salt segment is projected to produce 1.35 million tons of salt, accounting for about 80% of the province's total production [6][7]. - The integration of renewable energy sources, such as solar power, into salt production is being explored to enhance economic growth and land utilization [7].