Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the electricity industry in China, focusing on the performance of various energy sectors in the first half of 2025, including thermal, hydro, nuclear, and renewable energy sources [1][2][3]. Core Insights and Arguments - **Electricity Generation Growth**: In the first half of 2025, industrial electricity generation increased by 0.8% year-on-year, reaching 4,500 billion kWh. Thermal and hydro power faced significant competitive pressure, while nuclear, photovoltaic, and wind energy saw double-digit growth, with photovoltaic energy growing by 20% [1][4]. - **Electricity Price Trends**: The overall electricity price is under pressure and declining, with significant regional differentiation. Northern regions experienced smaller declines, while southern provinces saw more substantial drops, with some months exceeding 15% [1][5]. - **Coal Prices Impact**: Coal prices continued to decline due to weak demand, with the spot price of 5,500 kcal coal dropping by 27.6% year-on-year to 621 RMB/ton by the end of June. High inventory levels are expected to keep costs low in the third quarter [1][6]. - **Public Utility Sector Performance**: The public utility index outperformed the CSI 300 index by 2.2 percentage points, with a 2.23% increase in the public utility index compared to a 0.03% increase in the CSI 300 index [1][7]. - **Fund Holdings**: Public fund holdings in the public utility sector showed signs of recovery, with a combined holding ratio of 2.16% by the end of the second quarter [1][8]. Performance by Sector - **Thermal Power**: The thermal power sector reported a revenue decline of 3.7% to 572.6 billion RMB but achieved a net profit increase of 6.3% to 44.1 billion RMB, benefiting from lower coal prices [1][10]. - **Hydropower**: Despite challenges from high base figures and lower water levels, hydropower companies managed to achieve a revenue increase of 4.7% to 87.9 billion RMB and a net profit increase of 10.7% to 26.2 billion RMB [1][11]. - **Nuclear and Renewable Energy**: The nuclear and renewable energy sectors faced challenges, with revenues declining by 2% to 153 billion RMB and net profits decreasing by 6.4% to 25.1 billion RMB [1][12]. Investment Recommendations - **Thermal Power**: Focus on companies in southern regions like Baoneng New Energy and Guangzhou Development, as well as high-dividend stocks like Guodian Power [1][13]. - **Renewable Energy**: Look for opportunities in companies like Xintian Green Energy and Longyuan Power, which are expected to benefit from market reforms and policy support [1][13]. - **Hydropower**: Consider relatively undervalued assets in the hydropower sector for investment [1][13]. - **Nuclear Power**: Despite short-term pressures, long-term growth in installed capacity and asset expansion makes companies like China General Nuclear Power a focus for investment [1][13]. Additional Important Insights - The overall electricity consumption growth is expected to recover in the second half of 2025, with an annual growth forecast of around 5% [2]. - The elasticity of electricity consumption has decreased significantly, indicating a shift in demand dynamics [2]. This summary encapsulates the key points from the conference call, providing a comprehensive overview of the electricity industry's performance and outlook for 2025.

Summary of Longking Environmental Conference Call Company Overview - **Company**: Longking Environmental - **Industry**: Environmental Protection and Green Energy Key Points Industry and Market Dynamics - Longking Environmental benefits from the accelerated development of green electricity projects, with new projects and high electricity prices enhancing profitability, expected to be in a continuous release cycle for the next three years [2][3] - The traditional environmental protection business is stable, contributing approximately 900 million in profit annually, corresponding to over 10 billion in revenue [2][6] - The market demand for flue gas governance in the thermal power sector is growing, with a market size of 15-16 billion annually, driven by new installations and replacement needs [7][9] Core Business Segments - **Traditional Environmental Business**: Focused on air pollution control equipment delivery, waste incineration, and hazardous waste treatment, with a historical revenue exceeding 10 billion [6] - **Green Electricity Projects**: Includes self-generated green electricity projects related to Zijin Mining, with both existing and new projects accelerating investment [4][10] - **Equipment Manufacturing**: Involves the production of new energy mining equipment and energy storage solutions, with significant progress in domestic and international projects [4][16] Financial Performance and Projections - New signed orders for 2024 are projected at 10.1 billion, with a backlog of 18.7 billion, sufficient to support two years of revenue recognition [6] - The overall market size for the flue gas governance industry is estimated at 26-27 billion annually, with thermal power accounting for about 60% and non-thermal sectors about 40% [9] - The company’s green electricity business showed significant growth, with profits nearing 100 million in the first half of the year, contributing about 20% to total profits [10][11] Project Highlights - **Xizang Mami Cuo Photovoltaic Storage Diesel Generator Off-grid Project**: Total investment of 2.391 billion, with expected annual profits exceeding 200 million [12] - **Democratic Republic of the Congo 140 MW Hydropower Project**: Total investment of 399 million USD, with a competitive advantage due to low costs and high selling prices [13][14] Future Growth Opportunities - The company is actively pursuing projects in Tibet and overseas, with a projected renewable energy generation target of 30% by 2030 for Zijin Mining [15] - The company has a growth potential from 1 GW to 7 GW in green electricity capacity [15] Valuation and Market Position - Current valuation is approximately 15-16 times earnings, with expected net profit growth of about 30% year-on-year, reaching 1.4 to 1.5 billion next year [18] - The company benefits from supportive policies for direct consumption of green electricity, enhancing its investment appeal [18] Additional Insights - The company has made significant strides in the energy storage sector, achieving profitability in the first half of the year after previous losses [16] - Longking Environmental is expanding into the mining equipment sector, providing comprehensive solutions that include wind and solar energy applications [17]

Core Viewpoint - The recent notice from the National Development and Reform Commission and the Energy Administration aims to enhance the price mechanism to promote the nearby consumption of renewable energy, requiring that the annual self-consumption of renewable energy should account for no less than 60% of the total available generation capacity and 30% of total electricity consumption, with new projects starting from 2030 required to meet at least 35% [1] Investment Highlights - The notice recommends commercial rooftop photovoltaics and highlights the potential of companies like Ankerui. It emphasizes the need for projects to have metering conditions and for grid companies to install metering devices to accurately measure electricity data at various stages [1] - The bidding for large-scale energy storage in August exceeded expectations, with a recommendation for storage operators like Southern Grid Storage. The combination of AI and the finalized document No. 136 is expected to drive the economic viability of large-scale storage, with domestic demand exceeding expectations [1] - Southern Grid Storage is positioned to benefit significantly as a large-scale storage operator within the Southern Grid, with a projected cumulative installed capacity of 654,200 kW and 1,298,300 kWh by the first half of 2025, alongside 10.28 million kW of pumped storage capacity [1] Industry Core Data Tracking - Electricity prices saw a 2% year-on-year decrease and a 1.3% month-on-month increase in August 2025. The price of thermal coal was reported at 680 RMB/ton as of September 12, 2025, reflecting a week-on-week increase of 1 RMB/ton [2] - The water level at the Three Gorges Reservoir was recorded at 162.88 meters, with inflow and outflow rates showing significant year-on-year increases of 33.59% and 198.15%, respectively [2] - Total electricity consumption from January to July 2025 reached 5.86 trillion kWh, a year-on-year increase of 4.5%, with various sectors showing different growth rates [2] - Cumulative power generation for the same period was 5.47 trillion kWh, with a year-on-year increase of 1.3%, while installed capacity additions in the first half of 2025 showed significant growth in renewable sources like wind and solar [2] Investment Recommendations - Companies within the Southern Grid system, such as Southern Grid Energy, Southern Grid Storage, and Southern Grid Technology, are recommended for investment opportunities [3] - The green electricity sector is expected to see improvements in asset quality and growth potential, with specific companies highlighted for attention [3] - The value of photovoltaic assets and charging station assets is anticipated to be reassessed positively due to regulatory support and market dynamics [3] - Investment opportunities in thermal power, particularly in the Beijing-Tianjin-Hebei region, are also recommended [3] - The hydropower sector is expected to benefit from rising prices and low costs, with strong cash flow and dividend capabilities [3] - The nuclear power sector is projected to grow, with multiple approvals for new units expected to enhance profitability and dividends [3]

Summary of Longyuan Power Conference Call Company Overview - Longyuan Power is a wind power business integration platform under the State Energy Group and is the largest wind power operator globally as of mid-2025, with a controlling stake of 59% held by the State Energy Group [6][12] - The group has a total installed capacity of 355 GW, with 122 GW in green energy, of which Longyuan Power accounts for 46% in wind and 19% in solar [6][12] Industry Dynamics - The domestic wind and solar installation has reached a turning point, with significant policy support leading to a recovery in cash flow for companies like Longyuan Power [2][3] - The implementation of Document No. 136 and mandatory green energy consumption policies have driven the price-to-book ratio (P/B) recovery to 0.76, although it remains at historical lows [2][12] Financial Performance - Longyuan Power's long-term return on equity (ROE) has been stable at 8%-9%, with only two years (2013 and 2022) showing declines due to external factors [7][8] - The company’s electricity price from desulfurization has decreased from 0.5 yuan per kWh in 2017 to 0.19 yuan per kWh in mid-2025, reflecting market pressures [2][9] - The company’s P/B ratio has dropped from a peak of 2.34 in September 2021 to a low of 0.52 in February 2024, with a slight rebound to around 0.76 [4][5] Cash Flow and Valuation - Longyuan Power is expected to face a free cash flow deficit of 12.1 billion yuan in 2024, but with a slowdown in conventional project development and accelerated national subsidy repayments, free cash flow may turn positive in 2025 [4][17] - The company’s accounts receivable stood at 49.5 billion yuan, representing 56% of net assets, indicating a high dependency on subsidy recoveries [18] Future Growth and Asset Development - Future growth will be supported by the injection of approximately 4 GW of green energy units from the group, upgrades to older units, and over 5 GW of offshore wind power reserves [14][15] - The company aims to add 7.5 GW of new capacity in 2024 and 5 GW in 2025, focusing on high-quality resource areas [13][14] Market Conditions and Pricing - The market for green certificates has seen a significant decline in prices, but recent policy changes have led to a recovery, with trading volumes increasing substantially [19] - The competitive advantage of wind power over solar is highlighted by better alignment with load curves and higher market prices [15] Profit Forecast - Longyuan Power's projected net profits for 2025, 2026, and 2027 are 6.43 billion yuan, 7.22 billion yuan, and 7.93 billion yuan, respectively, indicating growth rates of 0.1%, 12%, and 10% [20] Conclusion - Longyuan Power is positioned to benefit from industry recovery and policy support, with a strong asset base and growth potential despite current market pressures and historical low valuations [2][20]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company announced the investment in the Ma Mi Cuo integrated energy station project and the Congo (Kinshasa) Kalan Geng hydropower station project, with expected operational contributions starting from Q2 2026 [2][4] - The Ma Mi Cuo project is projected to generate an annual net profit of 130 million yuan, while the Congo project is expected to yield 358 million yuan annually, indicating a strong growth potential for the company [2][4] - The green electricity logic of the company continues to be validated, and the long-term development outlook remains positive [2] Summary by Sections Project Announcements - On September 12, 2025, the company announced the investment in the Ma Mi Cuo energy station and the Congo hydropower station projects [4] - The Ma Mi Cuo project is expected to be operational by Q2 2026, with a projected electricity price of 0.7 yuan/KWh (including tax) and an estimated annual net profit of 130 million yuan [2][4] - The Congo project is anticipated to be operational by 2029, with a supply electricity price of approximately 0.16 USD/KWh (excluding tax) and an estimated annual net profit of 358 million yuan [2][4] Financial Projections - The company is expected to achieve net profits of 1.103 billion yuan in 2025, 1.402 billion yuan in 2026, and 1.701 billion yuan in 2027, representing year-on-year growth rates of 32.8%, 27.1%, and 21.4% respectively [2] - The projected PE ratios for 2025, 2026, and 2027 are 15.1x, 11.9x, and 9.8x respectively, indicating a favorable valuation outlook [2] Operational Insights - The company has successfully operated the first phase of the La Guo Cuo project at full capacity and has seen stable operations in various overseas projects [2] - The green electricity projects are expected to contribute significantly to the company's profits, with a projected profit elasticity of 59% compared to the company's 2024 net profit [2]

Core Insights - Jilin Province is focusing on renewable energy development, with installed capacity exceeding 30 million kilowatts, injecting new momentum into overall revitalization [1][2] - The province's renewable energy industry is leveraging its natural resources, particularly wind and solar power, to enhance energy stability and reduce carbon emissions [2][3] Renewable Energy Development - Jilin Province has seen an average annual growth rate of 29% in renewable energy external transmission over the past three years [2] - The "Jidian into Beijing" project, the province's first ultra-high voltage transmission line, is included in the national "14th Five-Year" power development plan as a reserve project [2] - The province has exceeded its target by adding over 12 million kilowatts of new energy capacity in the Jilin section of the Songliao New Energy Base during the first four years of the "14th Five-Year" plan [2] Green Chemical Products - Low-carbon transformation is accelerating, with green hydrogen, green ammonia, and green methanol becoming key alternative products in shipping and agriculture [3] - The Shanghai Electric wind power and biomass green methanol integration project in Jilin has begun production, with an expected annual output of 50,000 tons of green methanol, facilitating the consumption of approximately 220 million kilowatt-hours of green electricity [3] - Jilin Province has launched five major green energy chemical projects, focusing on the large-scale utilization of green electricity for high-value chemical products [3] Industry Cluster Development - Jilin Province's renewable energy industry chain is expanding across multiple segments, including raw material production, equipment manufacturing, and product application [4] - Jilin Chemical Fiber dominates the domestic wind power sector with a 95% market share in carbon fiber, experiencing a 29% year-on-year increase in sales revenue [4] - Numerous companies, such as SANY Wind Power and Fanrui Heavy Industry, are establishing a presence in the region, supporting a one-stop procurement model for wind power equipment [4] - The province is witnessing the emergence of hydrogen energy vehicles and high-speed hydrogen-powered trains, indicating a shift towards high-quality economic development driven by renewable energy [4]

在欧阳明高看来，车网互动将成为城市已有配电网在风电光伏占比不断增加的情况下，解决充电容量的关键路径。 欧阳明高预测，到2050年，电动汽车保有量至少3.5亿辆，每辆车平均电量70千瓦时，则车载储能容量超过240亿千瓦时，与中国当前每天消费总电量相 当。"随着绿电逐步成为电力消费主体，电动汽车将成为真正的、能效最高的新能源汽车。"欧阳明高称。 此外，欧阳明高表示，2025年，我国新能源汽车销量预计超过1500万辆，随后将进入稳定增长期，年增长率下降但保有量大幅提升。到2030年，预计我国新 能源汽车保有量将达1亿至1.6亿辆。 图片来源：每经记者 李星 摄 每经记者｜李星 每经编辑｜余婷婷 9月13日，全国政协常委、清华大学教授欧阳明高在2025泰达汽车论坛上表示，电动汽车将实现充电免费甚至成为赚钱工具、纯电动车将占据市场绝对主体 地位。 据欧阳明高介绍，目前，车用磷酸铁锂电池衰减到70%，一般可满充满放循环3000次，日历寿命一般10至15年。按单次续航500公里计算，500次循环可满足 一般家用轿车10至15年、最高25万公里的总里程，富余的2500次循环电池包（按70千瓦时），最大可储能"炒电"近15万度 ...

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The report tracks the fundamentals of industrial silicon and polysilicon, including price, profit, inventory, and other data, and mentions a macro - industry news about a photovoltaic project in Inner Mongolia. The trend strength of industrial silicon is 0 (neutral), and that of polysilicon is 1 (slightly bullish) [2][4]. 3. Summary by Related Catalogs 3.1 Fundamental Data of Industrial Silicon and Polysilicon - **Futures Market**: Si2511 closed at 8,740 yuan/ton, with a volume of 347,619 lots and an open interest of 287,771 lots; PS2511 closed at 53,710 yuan/ton, with a volume of 278,296 lots and an open interest of 136,326 lots [2]. - **Basis**: Industrial silicon and polysilicon have different spot - futures basis values for different benchmarks, such as the spot premium of industrial silicon to East China Si5530 is +515 yuan/ton [2]. - **Price**: The price of Xinjiang 99 - silicon is 8600 yuan/ton, Yunnan Si4210 is 9650 yuan/ton, and polysilicon - N - type re - feedstock is 51550 yuan/ton [2]. - **Profit**: The profit of silicon plants in Xinjiang and Yunnan is negative, and the profit of polysilicon enterprises is - 14.4 yuan/kg [2]. - **Inventory**: Industrial silicon's social inventory is 53.9 million tons, enterprise inventory is 17.4 million tons, and industry inventory is 71.3 million tons; polysilicon's manufacturer inventory is 21.9 million tons [2]. - **Raw Material Cost**: The prices of raw materials such as silicon ore, washed coal, petroleum coke, and electrodes in different regions are provided [2]. - **Prices in the Polysilicon (Photovoltaic) Industry**: The prices of products such as trichlorosilane, silicon powder, silicon wafers, battery cells, components, photovoltaic glass, and photovoltaic - grade EVA are listed [2]. - **Profit in Related Industries**: The profit of DMC enterprises is - 1224 yuan/ton, and the profit of recycled aluminum enterprises is 90 yuan/ton [2]. 3.2 Macro and Industry News - On September 8th, the 500 - megawatt photovoltaic project of Inner Mongolia Jineneng New Energy in Zhungeer Banner started. It is a key large - scale wind and photovoltaic base project in desert, Gobi, and desert areas. After completion, it will send about 1 billion kWh of green electricity to the Beijing - Tianjin - Hebei region annually, with significant economic, social, and environmental benefits [2][4]. 3.3 Trend Strength - The trend strength of industrial silicon is 0, indicating a neutral outlook; the trend strength of polysilicon is 1, indicating a slightly bullish outlook [4].

Summary of Conference Call Notes Industry Overview - The AIDC (Artificial Intelligence Data Center) power supply system is transitioning to 800V HVDC, with solid-state transformers (SST) expected to become the final solution in the next 3-5 years [1][4] - Domestic companies like Shenghong Co. and Jinpan Technology are anticipated to leverage their technological advantages and existing overseas channels to penetrate the global supply chain [1][4] - The global capital expenditure growth is projected to exceed 50% in 2025, driving the adoption of HVDC over traditional UPS systems and SST over traditional HVDC+BRT [1][7] Key Trends and Developments - The application of green electricity in AIGC has significant potential, which may enhance its market space and impact power quality [1][6] - The UPS market is characterized by regional strengths and a fragmented competitive landscape, with the top three manufacturers holding about 40% market share, while the top three HVDC manufacturers currently dominate with approximately 90% market share, expected to decline to 60-70% [1][16][17] - The increasing power density in server power supplies is a clear trend, with domestic manufacturers like Oton and Meritec beginning to enter overseas supply chains [2][5][19] Market Dynamics - Domestic manufacturers have not yet fully penetrated the downstream market in onboard power supplies but are actively participating in the first-level UPS and second-level floating power supply segments [3] - The overseas market has been slow to adopt HVDC technology due to the stability of UPS systems and a lack of significant power increases in the industry [10] - However, the integration of renewable energy and the increase in cabinet power to over 200 kW are accelerating the introduction of HVDC technology in overseas markets [10][11] Technological Innovations - Delta's 800V HVDC solution utilizes a combination of HVDC modules, supercapacitors, and BPU to achieve direct current reduction within IT racks, facilitating the transition from 800V to a 50V system for data center servers [12][13] - SST is expected to see product rollout in 3-5 years, with decreasing semiconductor costs making it more competitive with traditional transformers [14] - The acceptance of SST technology is anticipated to be higher than current market perceptions due to its integration of traditional transformers with SSD and HVDC [14] Competitive Landscape - The competition in the UPS market is fragmented, while the HVDC market is more concentrated, with a significant share held by major internet companies [16][17] - The potential for HVDC technology in overseas markets is increasing, particularly as power requirements rise and existing supply systems approach their limits [11][18] Future Outlook - The market for second-level server power supplies is expected to continue growing, driven by increasing GPU and server power demands [18][19] - The development of power quality equipment is crucial for addressing harmonics and reactive power issues in data centers, with leading companies like Shenghong Co. expected to maintain their market share [20] - Chinese manufacturers are well-positioned to expand overseas, with a focus on first-level power supply innovations like 800V HVDC and SST [21][22]

Group 1 - China's electricity generation is projected to exceed 10 trillion kilowatt-hours in 2024, accounting for nearly 30% of global electricity generation, which is 2.5 times that of the United States and nearly 5 times that of India [3] - In July, China's electricity consumption surpassed 1 trillion kilowatt-hours, exceeding Japan's annual consumption and surpassing the combined annual consumption of Germany and France [4] - China is aggressively pursuing "super electricity projects," including significant investments in hydropower and nuclear power, with approvals for five nuclear projects and ten units [6] Group 2 - Approximately one-third of China's electricity consumption comes from renewable sources, with wind and solar power installations reaching 1.53 billion kilowatts, surpassing thermal power installations [7] - China is leading in power technology, with advancements in ultra-supercritical power generation technology, solar thermal power stations, and thorium molten salt reactors [7][8] - The country is on track to become the world's first "green electricity empire," focusing on clean, low-carbon, and intelligent energy systems [9][8] Group 3 - In 2023, China accounted for 95% of new coal power projects globally, 60% of solar power, and has maintained the largest nuclear power capacity under construction for 18 consecutive years [11] - China aims to increase the share of electricity in total energy consumption to 50%, compared to around 22% in the most developed countries [11] - The country's carbon emissions are projected to peak by 2025, with a 1.6% year-on-year decrease in the first quarter of 2025 [12] Group 4 - China is facing challenges in integrating renewable energy, with a significant amount of electricity wasted due to inadequate grid infrastructure and storage solutions [21][19] - In the first half of the year, China wasted 60 billion kilowatt-hours of electricity, with solar and wind power abandonment rates rising to 6.6% and 5.7%, respectively [21] - The need for advanced storage technology is critical for ensuring the stability and reliability of the power system as China transitions to a green electricity model [28][29] Group 5 - China has become the world's leader in new energy storage, with a total installed capacity of 73.76 million kilowatts, accounting for over 40% of global capacity [28] - Companies like CATL are leading the global market in energy storage battery shipments, with a market share of 36.5% in 2024 [33] - The focus is shifting from hardware competition to creating integrated solutions for renewable energy systems, requiring collaboration across various sectors [37] Group 6 - China's dominance in renewable energy technology includes over 40% of global new energy technology, 80% of solar component production, and 70% of wind power equipment production [42] - The State Grid Corporation of China operates energy networks in multiple countries, contributing to 17% of global cross-border electricity transmission [42] - The emergence of Chinese companies in the renewable energy sector is reshaping the global energy landscape, with increasing reliance on Chinese technology and solutions for a green future [42][43]