Core Viewpoint - The company, Shengruan Technology, is seeking to relist on the Hong Kong Stock Exchange after a previous failure, highlighting its position as a leading independent provider of smart oil and gas field solutions in China, with a market share of 4.9% [1] Company Performance - Shengruan Technology's revenue is projected to grow at a compound annual growth rate (CAGR) of 15.9% from 2022 to 2024, while net profit is expected to grow at a CAGR of 25.66% during the same period [1] - In the first four months of 2025, revenue growth slowed to 4.07%, and the company reported a net loss of 0.2 billion RMB, primarily due to product delivery cycles and revenue recognition issues [1] - As of April 30, 2025, the company had cash and cash equivalents of 0.67 billion RMB [1] Business Segments - The company operates in three main business segments: smart energy solutions (65.4% of revenue), smart manufacturing solutions (9.6%), and smart city solutions (25%) [2] - The smart energy solutions segment has shown steady growth from 2022 to 2024, but revenue significantly declined in 2025, dropping from 85.9% to 65.4% of total revenue [2] - The smart city solutions segment experienced a remarkable growth of 112.8% in 2025, increasing its revenue share by 12.8 percentage points [3] Financial Metrics - The company's gross margin has been declining, with a gross margin of 24.6% in the first four months of 2025, down 6.3 percentage points year-on-year [6] - The gross margin for the smart energy solutions segment fell from 42.7% to 26.9%, a decrease of 15.8 percentage points [6] - Despite the decline in gross margin, the company has managed to optimize its expense ratios, leading to an increase in net profit margin from 9.6% in 2022 to 11.3% in 2024 [6] Industry Outlook - The smart energy solutions market in China is expected to grow at a CAGR of 19.1%, reaching a market size of 32.4 billion RMB by 2024, and is projected to reach 66.9 billion RMB by 2029 [7] - The smart city solutions market is also significant, with a projected market size of 2.83 trillion RMB in 2024 and a CAGR of 16.3% [7] - Shengruan Technology holds a leading position in the smart energy solutions market, ranking second with a market share of 2.3% among the top five players [8] Competitive Position - The company faces challenges as its growth rate is lagging behind the industry average, indicating a potential decline in competitive strength [8] - The company has a high customer concentration, with the top five customers contributing over 70% of revenue, which poses risks to revenue stability [5] - The company's financial health is under pressure, with a high accounts receivable ratio, as 91.4% of revenue in 2024 was tied up in receivables [8]

Core Viewpoint - The company, Shengruan Technology, is seeking to relist on the Hong Kong Stock Exchange after a previous failure, highlighting its position as a leading independent provider of smart energy solutions in China, with a market share of 4.9% in the smart oil and gas field solutions market [1] Company Performance - Shengruan Technology's revenue is projected to grow at a compound annual growth rate (CAGR) of 15.9% from 2022 to 2024, while net profit is expected to grow at a CAGR of 25.66% during the same period [1] - In the first four months of 2025, revenue growth slowed to 4.07%, and the company reported a net loss of 0.2 billion RMB, primarily due to product delivery cycles and revenue recognition issues [1] - As of April 30, 2025, the company had cash and cash equivalents of 0.67 billion RMB [1] Business Segments - The company operates in three main business segments: smart energy solutions (65.4% of revenue), smart manufacturing solutions (9.6%), and smart city solutions (25%) [2] - The smart energy solutions segment has shown steady growth from 2022 to 2024, but revenue significantly declined in 2025, causing its revenue share to drop from 85.9% to 65.4% [2] - The smart city solutions segment experienced a remarkable growth of 112.8% in 2025, increasing its revenue share by 12.8 percentage points [3] Financial Metrics - The company’s gross margin has been declining, with a gross margin of 24.6% in the first four months of 2025, down 6.3 percentage points year-on-year [6] - The gross margin for the smart energy solutions segment decreased from 42.7% to 26.9%, a drop of 15.8 percentage points [6] - Despite the decline in gross margin, the company has managed to optimize its expense ratios, leading to an increase in net profit margin from 9.6% in 2022 to 11.3% in 2024 [6] Industry Outlook - The smart energy solutions market in China is expected to grow at a CAGR of 19.1%, reaching a market size of 32.4 billion RMB by 2024, and is projected to reach 66.9 billion RMB by 2029 [7] - The smart city solutions market is also significant, with a projected market size of 2.83 trillion RMB by 2024 and a CAGR of 16.3% [7] - Shengruan Technology holds a leading position in the smart energy solutions market, ranking second with a market share of 2.3% in 2024, while maintaining the top position in the independent smart oil and gas field solutions market [8] Customer Concentration - The company has a high customer concentration, with the top five customers contributing over 70% of revenue, which was 73.5% in the first four months of 2025 [5] - The reliance on a limited number of customers poses a risk, but stable relationships have allowed the company to negotiate higher revenue shares [5]

此次 "A" 评级的获得，不仅印证了海辰储能在项目可融资性上的坚实基础，更凸显了这家以技术创新 为驱动的全球化科技企业，在行业中持续攀升的竞争力与投资价值。这一评级背后，更是合作伙伴对海 辰储能 "持续交付高质量解决方案" 的深度信赖，其不仅能提供定制化储能方案，更始终致力于为客户 与行业创造长期价值。 PV Tech可融资性评级体系是行业内广受认可的权威评估工具。该报告通过对全球储能系统供应商的生 产制造能力和财务健康表现进行综合评估。获评 "A" 级的企业，意味着其在制造领域（涵盖电池及系 统生产研发、交付力、产品可靠性及出货量等）与财务稳健性（流动性、盈利能力、估值等）表现上均 达到国际公认的优质水准，是全球合作伙伴值得信赖的优选对象。 而海辰储能的市场表现正是这一评级的生动诠释：据鑫椤锂电统计数据，其 2025 年上半年全球电力储 能出货量排名跃升至第二；同时，成功跻身胡润研究院《2025 全球独角兽榜》，展现出强劲的发展势 能与市场认可度。 近日，国际权威研究机构 PV Tech Research 发布的《2025 第二季度储能可融资性评级报告》中，海辰 储能凭借强大的综合实力获 "A" 级（高级别 ...

Core Insights - Renewable energy is not only cost-competitive compared to fossil fuels but also reduces dependence on international fuel markets and enhances energy security [1][2] - The business case for renewable energy is stronger than ever, driven by technological advancements and improved supply chains, although short-term challenges remain [2][5] Cost Competitiveness - In 2024, solar photovoltaic power is expected to be 41% cheaper than the lowest-cost fossil fuel electricity, while onshore wind projects will be 53% cheaper [1] - Onshore wind remains the most affordable new renewable energy source at $0.034 per kilowatt-hour, followed by solar photovoltaic at $0.043 per kilowatt-hour [1] - The addition of 582 gigawatts of new renewable energy capacity in 2024 is projected to save approximately $57 billion in fossil fuel costs [1] Structural Challenges - Integration costs are becoming a new constraint for renewable energy deployment, particularly due to grid connection bottlenecks and slow approval processes [3] - Financing costs are a critical factor in project feasibility, with high capital costs significantly increasing the levelized cost of electricity (LCOE) in many developing countries [3] - The cost structure for onshore wind projects differs significantly between Europe and Africa, with European projects driven mainly by capital expenditures, while African projects face higher financing costs [3] Technological Advancements - Battery storage systems have seen a 93% cost reduction since 2010, with utility-scale storage systems expected to reach $192 per kilowatt-hour by 2024 [3] - Digital technologies and hybrid systems combining solar, wind, and battery storage are becoming essential for integrating intermittent renewable energy [4] Policy and Investment Framework - A stable and predictable revenue framework is crucial for reducing investment risks and attracting capital in both mature and emerging markets [2][5] - International cooperation is necessary to ensure open and resilient supply chains and to establish stable policy and investment frameworks, especially in the Global South [5]

Core Insights - Renewable energy is not only cost-competitive compared to fossil fuels but also reduces dependence on international fuel markets and enhances energy security [1][2][5] - The International Renewable Energy Agency (IRENA) reports that renewable energy maintains a leading cost advantage in the global electricity market, driven by technological innovation, competitive supply chains, and economies of scale [1][2] Cost Competitiveness - In 2024, solar photovoltaic power is expected to be 41% cheaper than the lowest-cost fossil fuel electricity, while onshore wind projects will be 53% cheaper [1] - Onshore wind remains the most affordable new renewable energy source at $0.034 per kilowatt-hour, followed by solar photovoltaic at $0.043 per kilowatt-hour [1] - The addition of 582 gigawatts of new renewable energy capacity in 2024 is projected to save approximately $57 billion in fossil fuel costs [1] Investment and Structural Challenges - Geopolitical changes, raw material shortages, and evolving manufacturing conditions pose short-term challenges that may temporarily increase costs [2] - Stable and predictable revenue frameworks are crucial for reducing investment risks and attracting capital, especially in both mature and emerging markets [2][3] - Financing costs significantly impact project feasibility, particularly in developing countries where high capital costs elevate the levelized cost of electricity (LCOE) [3] Technological Advancements - Battery storage systems have seen a 93% cost reduction since 2010, with utility-scale storage systems expected to reach $192 per kilowatt-hour by 2024 [3] - Digital technologies and hybrid systems combining solar, wind, and battery storage are becoming essential for integrating intermittent renewable energy [4] Future Outlook - The total savings from all operational renewable energy projects in 2024 is estimated to reach $467 billion in avoided fossil fuel costs [5] - The transition to renewable energy is irreversible, but its pace and equity depend on current decisions regarding international cooperation and investment frameworks [5]

Core Viewpoint - The company plans to issue A-shares to specific investors to enhance its capital strength and support business development, aligning with national energy transition goals and industry policies [1][4][14]. Group 1: Background and Purpose of the Issuance - The issuance is driven by the need for technological innovation and strategic support in the energy sector, particularly in response to the "dual carbon" goals and the transformation towards cleaner energy [1][3]. - The company aims to leverage government policies that encourage the development of green hydrogen and other sustainable energy solutions, positioning itself as a leader in the oil and gas resource development sector [1][2]. Group 2: Financial Aspects of the Issuance - The total amount to be raised from the issuance is capped at 353.16 million yuan, which will be used entirely for replenishing working capital and repaying debts, thereby improving the company's financial structure and reducing financial risks [5][10]. - The issuance price is set at 6.59 yuan per share, which is not less than 80% of the average trading price over the previous 20 trading days [6][11]. Group 3: Issuance Process and Compliance - The issuance process has been approved by the company's board and supervisory committee, and it complies with relevant laws and regulations, ensuring a fair and transparent process for all shareholders [14][15]. - The issuance is structured to avoid any adverse effects on existing shareholders, with measures in place to protect their interests [15][22]. Group 4: Impact on Financial Metrics - The issuance may lead to a dilution of immediate returns for existing shareholders, but the company has outlined specific measures to mitigate this impact and enhance future profitability [19][20]. - Projections indicate potential changes in key financial metrics post-issuance, with various scenarios analyzed for net profit growth and earnings per share [17][18].

Financial Performance - H1 2025 EBITDA increased by 10% to $659 million compared to $597 million in H1 2024[6, 21] - H1 2025 Net Income decreased by 8% to $246 million compared to $267 million in H1 2024[21, 33] - H1 2025 FFO was $403 million, driven by $261 million received from PEC's factoring[6, 36] - Q2 2025 EBITDA decreased by 3% to $293 million compared to $304 million in Q2 2024[21, 27] Operational Highlights - Hydro generation in Q2 2025 was in line with last year's levels[6] - Thermal generation and gas trading showed notable performance[6] - H1 2025 North Zone thermal generation increased by 7%[10] - Emission-free production accounted for 78% of net installed capacity[14] Regulatory and Portfolio Management - VAD 2024-28 Consultant's final report is expected in Q3 2025[6, 17] - H2 2025 energy regulated tariff decree was published in July 2025[6, 17] - BESS ancillary system regulation is expected to be released in Q3 2025[6] - Total receivables net of recovery Jun/25 PEC 164 million USD[17] Debt and Liquidity - Gross debt was $3.650 billion as of June 30, 2025[39] - The company has a robust liquidity position of $1.7 billion[39] - 86% of gross debt has a fixed rate[39]

Core Viewpoint - The ambitious plan of the EU to purchase $750 billion worth of energy products from the US faces significant practical challenges, with analysts deeming the target unrealistic given the current market dynamics and supply capabilities [1][2]. Group 1: Trade Agreement Details - The EU has committed to purchasing approximately $250 billion worth of US energy products annually, including LNG, oil, and nuclear fuel, which represents a more than threefold increase compared to the current energy trade volume of about €65 billion (approximately $76 billion) [2][3]. - To meet the $250 billion target, the EU would need to import around 67% of its energy needs from the US, which is not feasible given the current import levels and market conditions [3]. Group 2: Market Dynamics and Challenges - The US's total energy exports to all global buyers in 2024 are projected to be $318 billion, making it impractical for the EU to triple its imports from the US [3]. - Even with political will, market forces will dictate energy flows, and the EU cannot control the import decisions of its companies, which are primarily private entities [4]. Group 3: Energy Transition and Future Outlook - The EU's plan to increase fuel purchases contradicts its expected decline in demand as it transitions to cleaner energy sources, with oil demand having peaked several years ago [5]. - The most likely outcome of the trade agreement is increased participation of European companies in US LNG projects, rather than a significant change in market dynamics within the next five years [5].

Core Insights - The EU's commitment to purchase $750 billion in energy products from the US faces significant challenges, as analysts believe this figure exceeds both EU import demand and US export capacity [1][2] - The agreement requires the EU to import approximately $250 billion annually in US energy products, which is more than three times the current energy trade volume of about €65 billion (approximately $76 billion) [1][2] - Market analysts warn that this commitment is impractical and could lead to rising global energy prices, affecting domestic energy costs in both the US and EU [1] Group 1: Demand and Supply Discrepancies - To meet the $250 billion target, the EU would need to import about 67% of its energy demand from the US, which is unrealistic given the current import levels [2] - In 2024, the EU's total energy imports from the US are projected to be around €65 billion, with LNG accounting for €20 billion (35 million tons) and oil products for €44 billion [2] - Even if the EU shifted all LNG purchases to the US, the total would only reach €40-50 billion, necessitating a complete withdrawal of other suppliers from the EU market [2] Group 2: Market Forces vs. Political Will - Despite political intentions, market forces will dictate energy flows, and the EU cannot control the import behaviors of its companies [3] - The EU does not directly purchase energy; transactions are conducted by private companies, limiting the EU's ability to enforce compliance with the agreement [3] - Analysts emphasize that the EU would either have to pay excessively high prices for US LNG or receive more LNG than it can handle, making the agreement impractical [3] Group 3: Global Competition and Energy Transition - The EU's plan to increase fuel purchases contradicts its expected decline in demand as it transitions to clean energy [4] - Other countries, such as Japan and South Korea, are also seeking to increase their energy imports from the US, intensifying competition for US energy supplies [3][4] - The most likely outcome of the trade agreement is increased European participation in US LNG projects, which would occur regardless of the agreement [4]

Group 1 - The A-share market showed mixed performance on July 30, with the Shanghai Composite Index rising strongly while the ChiNext Index experienced slight declines. The ChiNext New Energy ETF, Huaxia (159368), saw a 0.79% increase yesterday but adjusted slightly today. The stock Yunda Co. received a patent authorization, boosting its share price and injecting local vitality into the sector [1] - In the first half of this year, China's lithium-ion battery exports reached $34.102 billion (approximately 245 billion RMB), marking a year-on-year increase of 25.14% and setting a historical high for the same period, reversing the export decline seen in 2024 [1] - Domestic new energy installation capacity also demonstrated strong growth. According to the State Grid Energy Research Institute's "China New Energy Power Generation Analysis Report 2025," by the end of 2024, China's cumulative new energy installed capacity is expected to reach 1.41 billion kilowatts, a year-on-year increase of 33.9%, accounting for 42% of the total installed capacity in the country, surpassing coal power to become the largest power source [1] Group 2 - The ChiNext New Energy ETF, Huaxia (159368), is the first ETF in the market tracking the ChiNext New Energy Index, which covers various sectors including batteries, photovoltaics, and semiconductors, indicating high elasticity and strong growth potential [2] - The management fee for the ChiNext New Energy ETF is 0.15%, and the custody fee is 0.05%, totaling only 0.2%, making it the lowest fee among similar products, facilitating quick investment opportunities for investors [2] - Investors are encouraged to continuously monitor future investment opportunities in the new energy sector, given the promising growth outlook [2]