Core Viewpoint - The National Energy Administration's guidance emphasizes the integration of coal and renewable energy, promoting a balanced approach to energy supply and low-carbon transition, recognizing coal's ongoing role in energy security despite the push for cleaner alternatives [1][2]. Group 1: Development Strategy - The guidance aims to leverage coal mining areas for renewable energy development, utilizing existing infrastructure and land to support solar and wind energy projects, thereby reducing construction costs and enhancing efficiency [2][3]. - The integration of coal and renewable energy is seen as a necessary response to the changing energy market, where traditional coal consumption is declining, pushing companies to seek new growth avenues [2][3]. Group 2: Implementation Measures - Production integration involves accelerating the construction of solar power stations in coal mining regions and exploring geothermal energy and distributed solar heating to utilize local resources effectively [3][4]. - Consumption integration focuses on electrifying key coal production processes, replacing traditional energy sources with renewables, and establishing smart microgrids to enhance green energy usage in mining areas [3][4]. Group 3: Industry Transformation - Coal companies are encouraged to invest in clean and efficient power generation and transition towards comprehensive energy service providers, enhancing the value of coal through innovative products [4]. - The successful transformation of traditional energy sectors, as demonstrated by Germany's Ruhr area, illustrates the potential for sustainable development through strategic industry restructuring [4].

Core Viewpoint - The National Energy Administration's guidance emphasizes the integration of coal and renewable energy, promoting the clean energy transition while ensuring energy security and sustainable development in the coal industry [1][2]. Group 1: Development Strategy - The guidance aims to leverage coal mining areas to develop renewable energy, implementing clean energy alternatives and extending the coal industry chain [1]. - The "14th Five-Year Plan" suggests reaching peak coal and oil consumption, indicating a shift towards clean energy while recognizing coal's ongoing role in energy security due to China's resource endowment [1][2]. Group 2: Resource Utilization - Coal mining regions are identified as natural sites for renewable energy development, with abundant wind and solar resources available [2]. - Existing infrastructure in mining areas, such as substations and transmission lines, can support renewable energy projects, reducing construction costs [2]. - The workforce in coal mining areas can be retrained for renewable energy operations, optimizing resource utilization [2]. Group 3: Industry Transformation - The coal industry faces pressure from shrinking consumption and rising costs, necessitating a shift towards renewable energy to sustain growth [2]. - Transitioning to renewable energy can lower production costs and extend the industry chain, allowing companies to evolve from selling coal to providing energy and services [2]. Group 4: Implementation Measures - The strategy includes promoting photovoltaic and wind power projects in mining areas, utilizing land effectively for energy production [3]. - Electrification of key coal production processes and the establishment of charging stations are recommended to enhance energy efficiency [3]. - The development of smart microgrids and green electricity trading is encouraged to increase the use of renewable energy in mining areas [3]. Group 5: Future Outlook - The coal industry is expected to transition towards comprehensive energy service providers, enhancing the value of coal products through innovation [4]. - Successful examples from regions like Germany's Ruhr area illustrate the potential for traditional energy sectors to transform and achieve sustainable development [4]. - By the end of the "14th Five-Year Plan," significant advancements in photovoltaic and wind energy integration in coal mining areas are anticipated, leading to cleaner and more efficient operations [4].

Core Viewpoint - The National Energy Administration released guidelines on November 7, 2025, to promote the integration of coal and renewable energy, aiming for significant achievements by the end of the 14th Five-Year Plan, with a mature development model for photovoltaic and wind power in coal mining areas and a substantial increase in electricity substitution and renewable energy penetration [1][2]. Industry Insights - The entire photovoltaic industry chain is currently experiencing an oversupply, with adjustments underway to counteract internal competition. There exists a significant gap in demand expectations that requires supplementary industrial policies to promote the development of renewable energy in mining areas, which will help enhance demand expectations [1][4]. - The development of photovoltaic and wind power industries in mining areas can effectively improve land resource utilization. This includes planning large photovoltaic bases in coal-producing regions with concentrated land resources and good grid access, utilizing mining subsidence areas for solar power stations, and promoting integrated models of photovoltaic and aquaculture or crop planting [3]. Investment Recommendations - Companies in the photovoltaic industry chain are recommended for attention, particularly in the silicon material segment, including GCL-Poly Energy (03800), Tongwei Co., Ltd. (600438), and Daqo New Energy (688303). Integrated manufacturers such as LONGi Green Energy (601012), JinkoSolar (688223), and Trina Solar (688599) are also suggested for investment focus [1][4].

Group 1 - The core viewpoint of the article emphasizes the integration of coal mining and renewable energy, advocating for the development of photovoltaic and wind power industries in mining areas [1] - The report highlights the importance of electrification transformation in key areas and encourages the construction of smart microgrids in mining regions [1] - It suggests orderly development of green electricity direct connection and aims to deeply explore the potential for green electricity consumption in the mining industry [1] Group 2 - The report indicates that the demand for new energy in mining is expected to expand from coal mining to other mining sectors [1] - It specifically recommends Longjing Environmental Protection (600388.SH) as a key investment opportunity [1] - Additionally, it suggests paying attention to high-quality green electricity operators such as Longyuan Power (00916) and Three Gorges Energy (600905.SH) [1]

Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Viewpoints - The report highlights the significant progress expected in the integration of coal and renewable energy by the end of the 14th Five-Year Plan, with a focus on enhancing the demand for renewable energy installations [5] - The report emphasizes the need for innovative methods to consume renewable energy, particularly in coal mining areas, to improve land resource utilization and promote the development of large-scale photovoltaic bases [6] - The report suggests that despite the oversupply in the photovoltaic industry chain, there is a substantial expectation gap in demand that can be addressed through supportive industrial policies [7] Summary by Sections Industry Overview - The closing index is at 10836.31, with a 52-week high of 10836.31 and a low of 6107.84 [2] Relative Index Performance - The report provides a relative performance index for the electricity equipment sector compared to the CSI 300 index, showing a range of percentage changes from -21% to +39% over specified periods [4] Investment Recommendations - The report recommends focusing on the photovoltaic industry chain, particularly on companies like GCL-Poly Energy, Tongwei Co., and Daqo New Energy in the silicon material segment, and integrated manufacturers such as LONGi Green Energy, JinkoSolar, and Trina Solar [7]

Group 1 - The core viewpoint of the report emphasizes the integration of coal and new energy development, with significant progress expected by the end of the 14th Five-Year Plan [2] - The report outlines key tasks for coal and new energy integration, including the development of photovoltaic and wind power in mining areas, clean energy substitution, and innovation in green energy utilization [2] - The "China's Action on Carbon Peak and Carbon Neutrality" white paper highlights the importance of green and low-carbon energy transformation to achieve carbon neutrality goals [2] Group 2 - The weekly performance of various indices shows significant increases, with the lithium battery index rising by 8.00% and the energy storage index by 4.60% [1] - Lithium prices have increased, with carbonate lithium priced at 80,600 yuan/ton, up 6.8% from the previous week, and hydroxide lithium at 75,800 yuan/ton, up 2.9% [1] - The average national electricity purchase price is projected to decrease by 1% year-on-year by June 2025, while coal prices have increased by 47 yuan/ton week-on-week [3] Group 3 - Investment recommendations include focusing on undervalued thermal power assets and opportunities in charging pile and photovoltaic infrastructure [4] - Specific companies recommended for investment in thermal power include Jingtian Energy, Jingneng Power, and Datang Power [4] - The report suggests that the growth potential of green electricity is re-emerging, with historical issues regarding national subsidies expected to be resolved [4]

Investment Rating - The report maintains an "Overweight" rating for the utility sector [1]. Core Insights - The report emphasizes the integration of coal and renewable energy development, highlighting the significant progress expected by the end of the 14th Five-Year Plan, including the establishment of clean and low-carbon mining areas and increased penetration of renewable energy [4]. - The release of the "China's Action on Carbon Peak and Carbon Neutrality" white paper underscores the importance of green and low-carbon energy transformation as a key to achieving carbon neutrality goals [4]. Industry Data Tracking - **Electricity Prices**: The average grid purchase price in June 2025 was 389 RMB/MWh, showing a year-on-year decrease of 1% and a month-on-month decrease of 1.3% [33]. - **Coal Prices**: As of November 7, 2025, the price of thermal coal at Qinhuangdao was 817 RMB/ton, reflecting a year-on-year decrease of 3.54% but an increase of 47 RMB/ton week-on-week [42]. - **Water Conditions**: As of November 6, 2025, the water level at the Three Gorges Reservoir was 173 meters, consistent with previous years, and the inflow and outflow rates increased by 65% and 46% year-on-year, respectively [53]. - **Electricity Consumption**: Total electricity consumption from January to September 2025 reached 7.77 trillion kWh, a year-on-year increase of 4.6% [12]. - **Power Generation**: Cumulative power generation from January to September 2025 was 7.26 trillion kWh, with a year-on-year increase of 1.6% [19]. - **Installed Capacity**: From January to August 2025, new installed capacity for thermal power was 49.87 million kW, a year-on-year increase of 74.4% [44]. Investment Recommendations - **Thermal Power**: Focus on undervalued investment opportunities in thermal power, particularly in the Beijing-Tianjin-Hebei region, with recommendations for companies like Jingtou Energy, Jingneng Power, and Datang Power [4]. - **Charging Infrastructure**: Attention to companies involved in charging pile equipment such as Teruid and Shenghong [4]. - **Renewable Energy Assets**: Potential for value reassessment in solar and charging pile assets, with recommendations for companies like Southern Power Grid Energy and Longxin Group [4]. - **Green Electricity**: Opportunities in green electricity with expected improvements in asset quality and growth potential, recommending companies like Longyuan Power and China Minmetals [4]. - **Hydropower**: Benefiting from marketization with low costs and strong cash flow, recommending companies like Yangtze Power [4]. - **Nuclear Power**: Growth potential with increased approvals for new units, recommending companies like China National Nuclear Power and China General Nuclear Power [4].

Hot News - The Ministry of Finance released the report on the implementation of China's fiscal policy in the first half of 2025. It will make full use of a more proactive fiscal policy, compact the budget execution responsibility chain, combine improving the efficiency of fund use with ensuring fund safety, and promote the implementation of funds and policies [2] - The National Energy Administration issued the guiding opinions on promoting the integrated development of coal and new energy. By the end of the 15th Five - Year Plan, significant achievements are expected in the integrated development of coal and new energy, with a basically mature development model for the photovoltaic and wind power industries in coal mining areas, a substantial increase in electricity substitution and new energy penetration, and the construction of a number of clean and low - carbon mining areas [2] - On November 7 local time, the U.S. Senate failed to pass the motion to advance the Specific Federal Employees Appropriations Act, with 53 votes in favor and 43 against, falling short of the 60 - vote threshold. The government shutdown is difficult to lift for the time being [2] - The General Administration of Customs decided to revoke the 2025 No. 30 announcement on suspending the soybean export qualifications of three U.S. enterprises including CHS Inc., and resume their soybean export qualifications to China from November 10, 2025 [2] - The China Securities Regulatory Commission approved the registration of platinum, palladium futures and options at the Guangzhou Futures Exchange and will supervise the exchange to ensure the smooth launch and stable operation of these products [2] Plate Performance - Key focus: Pulp, crude oil, coking coal, Shanghai copper, Shanghai gold [3] - Night session performance: Non - metallic building materials rose 3.13%, precious metals 28.56%, oilseeds 9.61%, non - ferrous metals 23.20%, soft commodities 2.77%, coal, coke, steel and ore 13.36%, energy 2.90%, chemicals 11.33%, grains 1.21%, and agricultural and sideline products 3.93% [3] Big Asset Performance | Category | Name | Daily % Change | Monthly % Change | Year - to - Date % Change | | --- | --- | --- | --- | --- | | Equity | Shanghai Composite Index | - 0.25 | 1.08 | 19.27 | | Equity | SSE 50 | - 0.21 | 0.89 | 13.17 | | Equity | CSI 300 | - 0.31 | 0.82 | 18.90 | | Equity | CSI 500 | - 0.24 | - 0.04 | 27.98 | | Equity | S&P 500 | 0.13 | - 1.63 | 14.40 | | Equity | Hang Seng Index | - 0.92 | 1.29 | 30.82 | | Equity | German DAX | - 0.69 | - 1.62 | 18.39 | | Equity | Nikkei 225 | - 1.19 | - 4.07 | 26.02 | | Equity | UK FTSE 100 | - 0.55 | - 0.36 | 18.47 | | Fixed Income | 10 - year Treasury Bond Futures | - 0.09 | - 0.22 | - 0.44 | | Fixed Income | 5 - year Treasury Bond Futures | - 0.05 | - 0.15 | - 0.59 | | Fixed Income | 2 - year Treasury Bond Futures | - 0.02 | - 0.07 | - 0.49 | | Commodity | CRB Commodity Index | 0.01 | - 0.54 | 1.41 | | Commodity | WTI Crude Oil | 0.66 | - 1.72 | - 16.82 | | Commodity | London Spot Gold | 0.59 | - 0.06 | 52.44 | | Commodity | LME Copper | 0.12 | - 1.80 | 21.79 | | Commodity | Wind Commodity Index | 0.20 | - 1.90 | 28.15 | | Other | US Dollar Index | - 0.15 | - 0.18 | - 8.24 | | Other | CBOE Volatility Index | - 2.15 | 9.40 | 9.97 | [5]

Core Viewpoint - The National Energy Administration has issued guidelines to promote the integration of coal and renewable energy, aiming for significant achievements by the end of the 14th Five-Year Plan, with a focus on developing clean and low-carbon mining areas and enhancing the green development momentum of the coal industry [1][2]. Summary by Sections Investment Highlights - The guidelines establish a mechanism for the integration of coal and renewable energy, outlining seven key tasks to be accomplished [2]. - By the end of the 14th Five-Year Plan, the integration of coal and renewable energy is expected to show significant results, with mature development models for photovoltaic and wind power in coal mining areas [2]. Key Tasks 1. Accelerate the development of photovoltaic and wind power industries in mining areas, utilizing land resources effectively and promoting large-scale photovoltaic bases [2]. 2. Promote clean energy substitution in mining areas, including electrification of key production processes and the establishment of charging and hydrogen stations [2][3]. 3. Gradually advance renewable energy heating and cooling in mining areas, utilizing geothermal energy and distributed solar heating [3]. 4. Innovate methods for green energy development in mining areas, including the establishment of smart microgrids and increasing the use of green electricity [3]. 5. Encourage the extension of the coal industry chain and the collaborative development of renewable energy, supporting coal enterprises in diversifying into clean energy investments [4]. 6. Strengthen technological innovation and talent cultivation in the integration of coal and renewable energy [4]. 7. Enhance policy support for the integration of coal and renewable energy, incorporating it into relevant energy planning [4]. Investment Recommendations - The integration of coal and renewable energy presents opportunities in developing photovoltaic and wind power industries, promoting clean energy use, and encouraging the establishment of smart microgrids [4]. - Companies such as Longjing Environmental Protection and Huaneng Longyuan Power are highlighted as key players in the green electricity market [4].

Core Viewpoint - The National Energy Administration has issued guidelines to promote the integration of coal and new energy, establishing a core path for green energy transition during the 14th Five-Year Plan period. Zhaoxin Co., Ltd. has announced a project for low-concentration gas recovery, aligning with national strategies and aiming to become a benchmark in the coal and new energy integration sector [1][2]. Policy and Industry Context - The dual national policies create a solid development moat for the low-concentration gas utilization industry. The guidelines emphasize "strengthening the full concentration utilization of coal mine gas" and "promoting deep integration of coal and new energy," incorporating green transformation of mining areas into the new energy system framework. The revised emission standards for coalbed methane complement the carbon peak and carbon neutrality action plan, focusing on clean and efficient coal utilization and control of non-CO2 greenhouse gases [1]. - The new policies provide robust support for addressing technological transformation and commercial closure challenges in the industry, establishing a development direction of "energy security + low-carbon transition" during the 14th Five-Year Plan period [1]. Company Strategy and Market Potential - Zhaoxin Co., Ltd. is pioneering a differentiated development path by focusing on the resource utilization of low-concentration gas in mining areas. The company has developed a three-dimensional collaborative model of "resource efficient recovery + energy utilization + carbon asset appreciation" through the Qianjiaying project, utilizing core technology for safe and harmless treatment of low-concentration gas and waste heat recovery [2]. - The low-concentration gas and new energy collaborative development is expected to enter a period of explosive growth. By 2025, the national processing demand is projected to reach 1.8 billion cubic meters, requiring approximately 100 new operational projects annually, which could generate over 5 billion yuan in market growth. The industry scale is expected to grow from 28 billion yuan in 2023 to 80 billion yuan by 2030, with a compound annual growth rate of 12% [2]. - Currently, wind-blown gas accounts for 81% of methane emissions from coal mines in China, but the utilization rate is below 10%, indicating a significant supply-demand gap and vast market potential for improvement [2]. Financial Performance and Competitive Advantage - Zhaoxin Co., Ltd. has established a robust competitive advantage through a mature profit model and forward-looking layout. The company has created a multi-revenue closed loop consisting of "treatment service fees + power/heat income + CCER carbon revenue," with the Qianjiaying project expected to achieve a capital return rate of 17%. The CCER could further enhance the internal rate of return (IRR) of the entire investment by over 3.5%, significantly improving the project's profitability and risk resilience [3].