Core Viewpoint - The company held an earnings briefing on September 15, focusing on its business layout and financial status, highlighting its strengths in low-carbon smart heating solutions and semiconductor business development [1] Group 1: Smart Heating Business - The company positions itself as a provider of "one-stop low-carbon smart heating solutions," utilizing technologies such as AI Agent and digital twin, and has obtained 24 AI technology invention patents [2] - The RUNA - STORM AI smart heating system integrates multiple advanced technologies, achieving a leading level in smart heating management platforms in China [2] - The company aims to support national carbon reduction strategies through a diversified smart heating platform centered around cloud technology, offering comprehensive lifecycle solutions [2] Group 2: Semiconductor Business - The company is making steady progress in its third-generation semiconductor SiC business, with optimized processes ensuring stable crystal growth and production capabilities [3] - The carbon silicon powder has met standards and is in mass production, with ongoing upgrades to the dual-temperature zone crystal growth furnace [3] Group 3: Contract Energy Management - Contract Energy Management (EMC) is a key operational model for the company, providing heating energy-saving services and sharing profits with heating enterprises [4] - The company indicated that specific financial details regarding EMC's current order amounts and confirmation cycles will be available in future reports [4] Group 4: Financial Status and Improvement Plans - In the first half of the year, the company reported a revenue increase of 27.2% year-on-year and a net profit growth of 59.63%, although it still faced losses after deducting non-recurring items and negative operating cash flow [5] - The company attributed these results to seasonal impacts in the heating industry, with project implementation and payments concentrated in the fourth quarter [5] Group 5: Smart Hardware and Business Expansion - The company plans to increase R&D investment in smart hardware products, such as magnetic levitation heat pump units and intelligent IoT balancing valves, while enhancing product performance through AI technology [6] - Currently, there are no plans to expand into other industrial sectors or new energy-saving and environmental protection business areas [6] Group 6: Specialized and New Technology in Smart Cities - As a "specialized and innovative small giant" enterprise recognized by the Ministry of Industry and Information Technology, the company aims to strengthen its competitive position through continuous technological innovation [7] - The company is focusing on industrial internet technology to enhance its smart city construction efforts, developing a complete product system covering core aspects of heating systems [7] Group 7: Data and AI Technology Applications - The company currently uses accumulated heating data solely to provide energy-saving and carbon reduction services to heating companies, with no plans for market commercialization [8] - In AI smart heating, the company has established a multi-dimensional AI technology application system to improve heating efficiency and energy-saving effects, with no current plans to extend AI technology to other energy management fields [8]

Group 1 - The core viewpoint of the article highlights that Ruina Intelligent has announced a successful implementation of contract energy management services, which are encouraged by national and local policies and welcomed by heating enterprises [2] - The company collaborates with heating enterprises through contracts to share energy-saving benefits, utilizing AI systems for managing digital assets, thereby enhancing production technology and management levels [2] - The model is recognized for its low risk as heating enterprises do not need to invest upfront, achieving energy savings and cost reductions, which has received positive feedback from the heating sector [2] Group 2 - During the reporting period, the company has demonstrated good energy-saving and economic benefits through its contract energy management business [2]

Core Viewpoint - The company, Ruina Intelligent (301129.SZ), focuses on the smart heating sector, providing core products for heating system intelligence to reduce energy consumption and carbon emissions through technological innovation [1] Company Overview - Ruina Intelligent primarily operates in the smart heating field, offering intelligent core products for heating enterprises [1] - The company aims to achieve energy savings and carbon reduction from the source, addressing the energy consumption and carbon emissions of heating enterprises [1] Business Scope - Currently, the company has not engaged in energy management support for technology enterprises [1]

Core Viewpoint - Company has been awarded the contract for the Dongying District Smart Heating Renovation and Upgrade Project, indicating a significant opportunity for growth and revenue generation in the smart heating sector [1] Project Details - The project consists of two phases: renovation construction period and energy-saving benefit sharing period [1] - Phase one involves upgrading the smart heating monitoring platform and addressing issues at 266 heat exchange stations [1] - Phase two includes balancing and regulating 20 million square meters of secondary network, installation of smart valve control systems for buildings and households, and installation of temperature collection devices for no less than 40,000 households [1] Investment Overview - The estimated investment for the project is approximately 100 million yuan [1] - The project aims to achieve intelligent upgrades for heat networks and heating stations, ensuring optimal supply without under or over-supply [1]

Core Viewpoint - The company has been awarded a contract for the Dongying District Smart Heating Renovation and Upgrade Project, with a contract amount of 124.5% [1] Group 1: Project Details - The project is divided into two phases: renovation construction period and energy-saving benefit sharing period [1] - Phase one involves upgrading the smart heating monitoring platform and addressing issues at 266 heat exchange stations [1] - Phase two includes a balancing adjustment renovation for 20 million square meters, installation of smart valve control systems for buildings and households, and installation of temperature collection devices for no less than 40,000 households [1] Group 2: Technological Upgrades - The project aims to achieve intelligent upgrades for the heating network and heating stations, enabling time and temperature control for public buildings [1] - The unmanned heating stations will be linked to ensure no under-supply or over-supply of heating [1] Group 3: Financial Model - The project adopts an energy-saving benefit-sharing cooperation model, where the energy-saving benefits will be returned to the construction investment and profits annually after the completion and acceptance of phase two upgrades [1]

Core Insights - The company reported a steady growth in profit levels despite a complex market environment, with a net profit of 524 million yuan, an increase of 9.87% year-on-year, while operating revenue decreased by 2.65% to 1.898 billion yuan [1] Group 1: Business Performance - The company optimized its heating service area layout through acquisitions and collaborations to expand market share [1] - Customer satisfaction significantly improved due to enhanced quality control in heating services, utilizing multiple channels for user feedback [1] Group 2: Technological Advancements - The company is advancing smart heating initiatives, achieving breakthroughs in energy saving and efficiency through AI, with a pilot project for dynamic heat load distribution set to be implemented in the 2024-2025 heating season [1] - The company developed the "Lianmei Smart Operation Platform" to create a closed-loop system for data collection, analysis, and control, enhancing both energy conservation and service quality [1] Group 3: Future Strategies - In 2025, the company plans to scale up the application of smart technologies, focusing on optimizing energy efficiency across the entire supply chain [2] - The company aims to integrate smart heating renovations with urban renewal projects, upgrading old pipeline networks to intelligent heating systems with self-sensing and self-optimizing capabilities [2] - The company will continue to deepen its dual strategy of "clean energy + smart operation," exploring zero-carbon technologies and innovative service models [2]

Core Insights - The company achieved revenue of 1.898 billion and a net profit of 524 million in the first half of 2025, marking a year-on-year growth of 9.87% in net profit despite a complex market environment [1] Group 1: Financial Performance - In the first half of 2025, the company reported revenue of 1.898 billion and a net profit of 524 million, reflecting a 9.87% increase in net profit year-on-year [1] Group 2: Technological Advancements - The company’s subsidiary, Guoxin New Energy, has made significant progress in its flue gas waste heat recovery project, achieving a recovery of approximately 445,700 GJ of waste heat, saving 117,600 tons of water, and reducing coal consumption by 37,200 tons, resulting in a total reduction of 50,400 tons of CO2 emissions [2] - The company has developed a smart operation platform that utilizes IoT, big data, cloud computing, and AI technologies for real-time monitoring and intelligent control of the entire heating process, significantly improving energy efficiency and reducing energy loss [3] Group 3: Strategic Initiatives - The company plans to increase R&D investment in clean heating and deepen technological innovation to enhance the proportion of clean energy in the heating system, while also promoting collaboration with Moer Thread to leverage technological advantages for resource sharing and collaborative development [4]

Core Viewpoint - The recent financial report of Ruina Intelligent (301129) shows significant growth in revenue and improvement in profitability metrics, indicating a positive trend in the company's financial health and operational efficiency [1][3]. Financial Performance - As of the latest report, the company's total revenue reached 92.5867 million yuan, a year-on-year increase of 27.2% [1]. - The net profit attributable to shareholders was -6.9287 million yuan, showing a year-on-year improvement of 59.63% [1]. - In Q2 alone, total revenue was 80.5169 million yuan, up 83.71% year-on-year, with a net profit of 14.5235 million yuan, reflecting a 278.43% increase [1]. - The gross margin improved to 75.13%, a year-on-year increase of 42.47%, while the net margin was -7.48%, up 68.26% year-on-year [1]. - Total expenses (selling, administrative, and financial) amounted to 61.1831 million yuan, accounting for 66.08% of revenue, a decrease of 10.65% year-on-year [1]. Key Financial Ratios - The company's return on invested capital (ROIC) was 4.44%, indicating a relatively weak capital return, while the historical median ROIC since listing is 20.93% [3]. - The net profit margin for the previous year was 17.93%, suggesting high added value in products or services [3]. - The average operating cash flow over the past three years was negative, raising concerns about cash flow management [3]. Technological Advancements - The company has made significant advancements in technology, including the RUN-STORM I smart heating system, which integrates big data, cloud computing, and digital twin technology to enhance energy efficiency and reduce carbon emissions by 10%-30% [4]. - The development of a 100kW magnetic levitation centrifugal compressor fills a gap in waste heat recovery and heating, characterized by low vibration, low noise, and high efficiency [5]. - The integration of the RUN I intelligent system with DeepSeek's large model aims to transform the industry from experience-driven to data-driven decision-making [5].

Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 35.63 CNY per share, compared to the current price of 25.62 CNY [1]. Core Insights - The company is positioned as a leading player in the smart heating sector, leveraging platformization and AI algorithms to enhance its growth trajectory. The acceleration of EMC model deployment, EPC project deliveries, and initial developments in silicon carbide business are expected to strengthen the company's growth logic [1][2]. Financial Summary - The company’s total revenue is projected to grow from 428 million CNY in 2024 to 678 million CNY in 2025, reflecting a year-on-year increase of 58.4%. Net profit is expected to rise from 77 million CNY in 2024 to 162 million CNY in 2025, marking a significant growth of 110.6% [3][6]. - The earnings per share (EPS) is forecasted to increase from 0.56 CNY in 2024 to 1.19 CNY in 2025, with a net asset return rate projected to reach 8.7% in 2025 [3][6]. Revenue and Profitability Forecast - The core business of heating energy-saving system engineering is expected to generate revenue of 1.26 billion CNY in 2024, with anticipated growth rates of 100%, 30%, and 20% for the years 2025 to 2027, respectively [10]. - The intelligent modular heat exchange unit business is projected to achieve revenues of 0.76 billion CNY in 2024, with growth rates of 30%, 20%, and 15% for the subsequent years [11]. - The software business is expected to see a dramatic increase in revenue from 0.17 billion CNY in 2024 to 1.02 billion CNY in 2025, reflecting a growth rate of 500% [12]. Strategic Development - The company has established a comprehensive smart heating business system that integrates delivery and operation, focusing on energy-saving solutions and system upgrades. The low-carbon smart heating solution exemplifies the company's capabilities in system integration [24][26]. - The company is transitioning from a project-based delivery model to a more productized and standardized approach, enhancing its market resilience [30][31]. Competitive Positioning - The company maintains a high gross margin, consistently above 55%, with a gross margin of 59.69% in 2024, significantly higher than its peers [34]. - The company’s R&D expenditure reached 0.74 billion CNY in 2024, reflecting a commitment to technological advancement and competitive positioning in the market [36].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - The heating industry is undergoing rapid transformation, with trends towards energy - saving, clean heating, digitalization, and technological innovation [23]. - The company has achieved a significant reduction in operating costs and financing costs in 2024 by strengthening financing control and optimizing the capital structure [26]. 3. Summary by Relevant Catalogs 3.1. Research Basic Information - The research object is Huatong Thermal Power, belonging to the public utilities industry. The reception time was July 30, 2025, and the company's reception staff included the deputy general manager and the secretary of the board, Xie Lingyu [16]. 3.2. Detailed Research Institutions - The research institutions include China Enterprise Planning Institute, Daqin Fund, Shenzhen Qianhai Guojin, Jiangsu Bank, Zhongtou Wanfang Beijing, Beijing Guotou Taikang Trust Investment, Beijing Xinrongheng, Beijing Tianxiang, Jintai Capital, Beijing Sanhe Hongxin, and Beijing Qingqingyuanzhongkui Consulting [17]. 3.3. Main Content Information - **Net profit increase in Q1 2025**: The company's main business is heating supply, with strong seasonal characteristics. Revenue is concentrated in the first and fourth quarters, while equipment procurement and maintenance expenses are evenly distributed throughout the year [23]. - **Challenges and responses in the energy industry**: The heating industry is experiencing rapid innovation, with trends including energy - saving and emission - reduction, clean heating, digitalization, and technological innovation. Companies are expected to explore zero - carbon heating technologies [23]. - **Cooling technology**: The company provides comprehensive energy services including cooling. The cooling source uses a combination of new energy sources, which has higher cooling efficiency and is more energy - saving and environmentally friendly than traditional central air - conditioning. The pricing of cooling projects is determined through negotiation between supply and demand [25]. - **Change in financing costs**: In 2024, the company's operating costs and financial expenses decreased significantly due to strengthened financing control and optimized capital structure [26].