Core Insights - The Daan Project, a green hydrogen and ammonia integration demonstration project by State Power Investment Corporation, has been launched, marking a historic leap for China in the green hydrogen energy sector [1] - The project features four global firsts: large-scale green ammonia production, mixed hydrogen production, direct current microgrid, and solid-state hydrogen storage [1] - Jilin Electric Power Co., the only green hydrogen energy platform of State Power Investment Corporation, has signed sales agreements with multiple international companies, expanding green ammonia products to the international market [1] Company Developments - The Daan Project commenced production on July 26, showcasing China's advancements in green hydrogen technology [1] - Jilin Electric Power Co. has established partnerships with various domestic and international firms, including EDF China, China National Petroleum Corporation, Itochu Corporation of Japan, and Vopak of the Netherlands [1] - The first batch of green ammonia was officially dispatched to downstream markets on the day of production launch, indicating successful market entry [1]

Group 1 - The project marks a historic leap for China in the green hydrogen energy sector, featuring four global firsts in green ammonia and hydrogen production [1][3] - The project employs an integrated design approach for the entire industry chain, achieving significant technological breakthroughs and securing 1 invention patent and 33 utility model patents [3] - The project has a total installed capacity of 800 megawatts, consisting of 700 megawatts from wind power and 100 megawatts from solar power, with an annual production capacity of 32,000 tons of green hydrogen and 180,000 tons of green ammonia [4] Group 2 - The project is expected to reduce carbon emissions by approximately 650,000 tons annually and save about 230,000 tons of standard coal, equivalent to offsetting the carbon emissions from nearly 500,000 households' annual electricity consumption [4] - The chairman of Jilin Electric Power Co., Yang Yufeng, emphasized the commitment to strengthening the green hydrogen energy industry and developing benchmark projects like green methanol and green aviation fuel [6] - The city of Da'an aims to integrate ecological and energy advantages to establish a new green energy hub in western Jilin, aligning with national carbon neutrality strategies and high-quality development goals [6]

Core Viewpoint - The launch of the Daan project marks a significant advancement in the green ammonia sector, showcasing a new model for local consumption of renewable energy through large-scale wind and solar projects [1][2]. Group 1: Project Overview - The Daan project is the world's largest single green ammonia project, with an annual production capacity of 180,000 tons of green ammonia and 32,000 tons of green hydrogen [1][3]. - The project utilizes a comprehensive design approach that integrates green hydrogen production, green ammonia synthesis, and renewable energy generation [1][2]. - The project is powered by 800 MW of renewable energy, consisting of 700 MW from wind and 100 MW from solar [4]. Group 2: Technological Innovations - The Daan project features four global firsts, including the largest single production of 180,000 tons/year of green ammonia, and the largest dual technology route for hydrogen production [3]. - It employs a proprietary "electric-hydrogen-chemical" flexible control system to address the challenges of renewable energy volatility and chemical production stability [3]. Group 3: Market and Sales Strategy - Prior to the project's launch, the company signed sales agreements with multiple international firms, including EDF China and Japan's Itochu Corporation, to ensure market absorption of the produced green ammonia [4]. - The project has received a pre-certification report from Bureau Veritas, confirming compliance with EU low-carbon fuel standards, facilitating international market expansion [5]. Group 4: Environmental Impact - The Daan project is expected to reduce carbon emissions by approximately 650,000 tons annually and save about 230,000 tons of standard coal, equivalent to the annual carbon emissions of nearly 500,000 average households [1].

Core Viewpoint - Jilin Electric Power Co., Ltd. (吉电股份) has signed strategic cooperation agreements with EDF (China) and China National Petroleum International Company to enhance collaboration in the green hydrogen energy sector, aiming to leverage each other's strengths for mutual benefits in technology and market expansion [1][2]. Group 1: Cooperation with EDF (China) - Jilin Electric Power Co. is positioned as a key player in China's green hydrogen energy development, responsible for the entire industry chain including R&D, investment, and marketing [1]. - The partnership with EDF (China) is expected to deepen collaboration in technology and global market synergy, establishing a solid foundation for future cooperation [1]. Group 2: Cooperation with China National Petroleum International Company - The company aims to implement a balanced growth strategy in collaboration with China National Petroleum International, focusing on green hydrogen products, carbon reduction, and international market expansion [2]. - The partnership will leverage China National Petroleum's global marketing network to promote green ammonia, green methanol, and green aviation fuel, accelerating the global application of green hydrogen products [2]. - Both companies will integrate their production, sales, and logistics resources to enhance cooperation in green electricity trading and carbon business projects [2].

Group 1: Coal Supply and Pricing - The company's main coal suppliers include State Power Investment Corporation Inner Mongolia, Shenhua Energy Northeast Trading Company, and Huaneng Hohhot Energy Development Company, with long-term contracts accounting for approximately 90% of coal supply [1] - Long-term coal prices are executed according to the National Development and Reform Commission's pricing policy, while market coal prices are determined through bidding or negotiation based on market fluctuations [1] Group 2: Power Generation and Market Mechanisms - All heating units of the company are cogeneration units that participate in market transactions [1] - The cross-provincial electricity market trading mechanism in Jilin Province is smooth, with inter-provincial trading plans organized by the Beijing Trading Center [2] - Currently, bilateral trading accounts for a relatively large proportion of the electricity market in Jilin Province [2] Group 3: Future Plans and Financial Metrics - The company will focus on "new energy+" and "green hydrogen-based energy" as dual tracks to continuously improve operational performance and promote high-quality development [2] - The company's basic requirement for project IRR is 8%, which will be determined based on market changes and project conditions [2] - The company plans to conduct dividends in the second half of 2025 and the third quarter, with cash dividends not exceeding 10% of the net profit attributable to shareholders for the corresponding period, provided that the company maintains profitability and positive undistributed profits [2]

Core Viewpoint - The credit rating of Jilin Electric Power Co., Ltd. is affirmed at AAA with a stable outlook, supported by strong backing from its actual controller, advantages in renewable energy scale, and robust profitability and cash generation capabilities [3][4][9]. Financial Overview - Total assets of Jilin Electric Power increased from 668.25 billion in 2021 to 810.46 billion in 2024 [4][28]. - Total liabilities rose from 524.72 billion in 2021 to 600.28 billion in 2024, indicating an upward trend in debt levels [4][28]. - Operating revenue decreased from 149.55 billion in 2022 to 144.43 billion in 2023, reflecting a year-on-year decline of 3.42% [4][10]. - Net profit increased from 11.84 billion in 2022 to 15.63 billion in 2023, showing a growth of 32.5% [4][10]. Operational Strength - The company has a significant installed capacity of 1,342.12 MW as of 2023, with a high proportion of renewable energy [7][18]. - The average utilization hours for thermal power units were 3,849 hours in 2022, which decreased to 2,697 hours in 2023, indicating operational challenges [21][19]. - The company’s renewable energy projects are distributed across 30 provinces, enhancing risk diversification [17][19]. Industry Context - The overall power supply and demand in China is expected to remain balanced in 2024, with a continued trend towards cleaner energy sources [15][16]. - The average utilization hours of power generation equipment are declining due to rapid growth in installed capacity outpacing demand [15][16]. - The industry is facing challenges such as high coal prices and uncertainties in water resources, which may impact the balance of power supply and demand [15][16]. Debt and Financing - The company’s debt levels are increasing, with total debt reaching 592.60 billion by 2024, reflecting a high financial leverage [4][28]. - The company has a strong financing capability, with total credit facilities from financial institutions amounting to 41.85 billion [29][32]. - The debt structure is primarily long-term, which is considered reasonable [27][28]. Cash Flow and Profitability - Operating cash flow decreased to 54.45 billion in 2023 from 73.28 billion in 2022, indicating a decline in cash generation [31][29]. - The company’s profitability has improved due to lower coal prices and reduced financial costs, with EBIT increasing to 33.59 billion in 2023 [4][26]. - The EBITDA interest coverage ratio improved to 4.48 in 2023, reflecting enhanced debt servicing capacity [31][30].

Core Viewpoint - Jidian Co., Ltd. is making significant investments in green hydrogen-based energy, with a total investment of 4.92 billion yuan in the Lishu Green Methanol Innovation Demonstration Project, marking a key step in its transition to renewable energy [1][2][4]. Investment Details - The Lishu Green Methanol Innovation Demonstration Project has a total investment of 4.92 billion yuan, with a construction period of approximately 27 months [2][3]. - The project includes a wind power installation of 400,000 kW and a methanol synthesis facility with a capacity of 200,000 tons [2][3]. - The financial internal rate of return for the project is estimated at 8.88%, with a payback period of 13.86 years [2]. Renewable Energy Expansion - Jidian Co., Ltd. has announced a total investment of around 11 billion yuan in major renewable energy projects for 2024 [1][6]. - The company's clean energy installed capacity reached 11.14 million kW by the end of 2024, accounting for 77.15% of its total installed capacity [1][6]. Financial Performance - The company's net profit excluding non-recurring gains has shown continuous growth from 2020 to 2024, with a net profit of over 600 million yuan in the first quarter of this year, representing a year-on-year increase of 5.65% [1][7]. - Financial expenses have decreased significantly, from 1.84 billion yuan in 2022 to 1.447 billion yuan in 2024 [1][7]. Strategic Importance - The Lishu project is the first green methanol innovation demonstration project for Jidian Co., Ltd., which is expected to play a leading role in the company's overall layout and accelerate the development of its green hydrogen energy platform [4][5].

Core Viewpoint - Jilin Electric Power Co., Ltd. is transitioning from a traditional coal and electricity enterprise to a focus on renewable energy and green hydrogen, aiming for over 20% year-on-year growth in net profit attributable to shareholders in 2024, with clean energy revenue surpassing 50% of its main business for the first time [2][3]. Group 1: Renewable Energy Development - The company has increased its installed capacity from 850,000 kW in 2002 to over 14 million kW, with nearly 80% from renewable sources, establishing bases in five regions [3]. - Since the 14th Five-Year Plan, Jilin Electric has added over 6 million kW of renewable capacity, nearly doubling its previous figures, and increasing the renewable share by 14 percentage points [3]. - The company plans to enhance its leadership in renewable energy in Jilin Province while expanding its development scale in other regions such as Shandong, Jiangsu, and Xinjiang [3]. Group 2: Smart Operations and Efficiency - Jilin Electric has implemented "smart station" upgrades in 40 renewable energy stations over the past three years, reducing operational staff by 30% and achieving "无人值班" (unmanned operation) in 10 stations [4]. Group 3: Green Hydrogen Energy Initiatives - The company is focusing on green hydrogen energy, leveraging national policies to support the development of zero-carbon industries across various sectors [5]. - Jilin Electric is investing nearly 6 billion yuan in the world's largest green hydrogen production project, expected to produce 32,000 tons of green hydrogen and 180,000 tons of green ammonia annually [6]. - The company is also developing additional projects for green methanol and expanding its footprint in regions like the Middle East and North Africa [6]. Group 4: Research and Development - Over the past three years, Jilin Electric has invested 1.632 billion yuan in R&D, with an average annual intensity exceeding 3% [7]. - In 2024, the company plans to implement 62 research projects with a total R&D investment of 520 million yuan, increasing the R&D intensity to 3.29% [7].

Group 1: Financial Performance - In Q1 2025, the company's thermal power revenue was 1.271 billion CNY, a year-on-year decrease of 7.40% [1] - The heating revenue reached 647 million CNY, an increase of 8.44% year-on-year [1] - Wind power revenue was 837 million CNY, down 1.17% compared to the previous year [1] - Solar power revenue amounted to 937 million CNY, reflecting a year-on-year increase of 3.08% [1] Group 2: Future Development and Strategy - The company focuses on "New Energy+" and "Green Hydrogen-based Energy" as its key development directions [2] - The company is implementing a "Three-Three-Three" development strategy to establish three product lines: green ammonia, green alcohol, and green aviation fuel [2] - The company aims to create a replicable development model for its first demonstration projects in green ammonia, green alcohol, and green aviation fuel [2] Group 3: Market and Policy Changes - The National Energy Administration issued new auxiliary service market rules on May 20, 2025, which will take effect on June 1, 2025 [2] - The new rules eliminate the tiered pricing for deep peak regulation and align with the provincial new energy grid price [2] - The auxiliary service fees will no longer be generated under the new market operation rules [2] Group 4: Project Updates - The Daan wind-solar hydrogen synthesis ammonia integration project has completed mechanical completion and is in the sub-commissioning phase [2] - The Lishu wind-solar green hydrogen biomass coupling green methanol project is currently in the preliminary work phase [2] - The company is advancing the BaiCheng thermal power supply unit project [2]

Core Viewpoint - Jilin Electric Power Co., Ltd. (吉电股份) has demonstrated solid performance in its 2024 annual report, highlighting its commitment to the "New Energy +" and green hydrogen dual-track strategy, which has led to significant operational achievements and a strong foundation for future growth [1][2][3] Group 1: Financial Performance - The company achieved a net profit of 1.099 billion yuan, marking a steady increase and setting a new record for profitability [1] - Total installed capacity reached 14.4411 million kilowatts, with clean energy capacity accounting for 11.1411 million kilowatts, representing 77.15% of the total [6][8] Group 2: Strategic Development - The dual-track strategy of "New Energy +" and green hydrogen is being effectively implemented, with five new energy platform companies and three production operation centers established nationwide [2][4] - Significant progress has been made on key projects, including the Baicheng Phase II coal power supply project and the Lishu green methanol wind power project, which have received provincial approval [2] Group 3: Industry Positioning - The company is transitioning from a traditional coal power enterprise to a comprehensive energy company focused on new energy and green hydrogen, contributing to the establishment of a new energy system [1][4] - Jilin Electric Power Co., Ltd. is strategically positioned to leverage its advantages in various regions, including Jilin, Shandong, Jiangsu, and others, to foster new growth in the renewable energy sector [4][6] Group 4: Policy Support - National and local governments are actively supporting the development of green hydrogen, with recent policies emphasizing hydrogen's role in the energy transition [5][6] - The implementation of the Energy Law in 2025 will legally incorporate hydrogen into the energy system, providing a solid foundation for industry growth [5] Group 5: Technological Innovation - The company has achieved significant breakthroughs in the hydrogen energy value chain, including the successful certification of a renewable hydrogen project, marking a milestone in green hydrogen certification [8] - The integration of renewable energy with hydrogen production processes is enhancing the efficiency of green electricity consumption [7][8] Group 6: Future Outlook - The company aims to continue focusing on energy security, market demand, and advanced technology to explore replicable business models and technical pathways for the hydrogen industry [9] - Jilin Electric Power Co., Ltd. is committed to deepening the collaboration between "New Energy +" and green hydrogen to enhance its competitive edge in the global clean energy market [9]