Group 1 - The core strategy of the company is defined as "oil is the foundation, gas is the focus, electricity is the trend, and service is the future," aiming to transform from traditional oil sales to a comprehensive energy service provider [1] - In 2024, the company is projected to achieve a net profit of 99.33 million, marking a peak in nearly a decade, driven by the expansion of refined oil sales margins, increased market share, and effective cost control [1] - The company has improved its gasoline and diesel market shares by 0.46 and 0.93 percentage points respectively, aided by government initiatives to combat illegal activities in the sector [1] Group 2 - The company is actively developing integrated service stations that combine charging and photovoltaic systems, with plans to expand its charging and photovoltaic business [2] - The company acknowledges that the hydrogen energy application scenarios are not yet mature, but it has the capability to build and operate hydrogen refueling stations, which will be initiated based on market conditions [2] - The company plans to increase its dividend payout ratio to 50% in 2024 and has established a share repurchase plan to optimize its capital structure [2]

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - Foshan City Gas is a leading player in the urban gas sector, transitioning towards a comprehensive energy service enterprise. The company has implemented an equity incentive plan, with stable cash dividends enhancing its safety margin [2]. - The company has diversified its energy sources and is benefiting from policy support, with significant growth expected in gas consumption and photovoltaic installation capacity [2]. - The company is expanding its supply chain, engineering services, and technology research and development, contributing to multiple revenue streams [2]. Summary by Sections 1. Transition to Comprehensive Energy Services - Foshan City Gas is evolving from traditional urban gas services to a comprehensive energy service model, backed by state-owned capital for stable development. The company has expanded its gas business beyond Foshan, acquiring 13 regional gas operation rights [14][20]. - The company has successfully implemented an equity incentive plan, exceeding performance targets from 2020 to 2024, with an average dividend payout ratio exceeding 70% [43][44]. 2. Energy Business Growth - The company has a diversified natural gas supply model, with a policy target of an 8.9% increase in natural gas consumption from 2025 to 2035. The company has a competitive advantage in Foshan and has secured multiple gas operation rights [2][47]. - The natural gas sales volume has shown a compound annual growth rate of 17.59% from 2018 to 2024, with a stable user structure primarily consisting of industrial and commercial users [56][58]. 3. Supply Chain and Technological Development - The company is leveraging its supply chain advantages, with significant revenue growth in its supply chain business, which includes bio-diesel and bonded fuel oil imports [8]. - The company is also focusing on technology research and development, including solid oxide fuel cells and hydrogen energy equipment manufacturing, to drive innovation [8]. 4. Financial Projections and Valuation - The company is projected to achieve a net profit of 8.72 billion, 9.22 billion, and 9.76 billion yuan from 2025 to 2027, with corresponding P/E ratios of 15.3, 14.5, and 13.7 [2][8].

Core Viewpoint - The energy-saving industry is poised to become a trillion-yuan market, with the Chinese government targeting a scale of approximately 15 trillion yuan by 2030, emphasizing the importance of energy efficiency for sustainable development and international competitiveness [2][3]. Group 1: Market Potential - China is the world's largest energy consumer, with energy intensity 1.5 times the global average and 2 to 3 times that of developed countries, indicating significant potential for energy-saving initiatives [3]. - If energy efficiency in China were to reach that of developed countries, it could save at least half of the current energy consumption annually, leading to substantial reductions in pollutant emissions [3]. - The energy-saving and environmental protection industry is expected to create new economic growth points, driven by the urgent need for energy efficiency improvements across various sectors, including industry, construction, and transportation [3][4]. Group 2: Policy Support - The national "carbon peak" action plan includes energy-saving and carbon reduction initiatives, with numerous policies introduced to support the development of the energy-saving industry [3][6]. - The ongoing release of policy dividends and deepening energy market reforms are anticipated to generate more opportunities within the energy-saving sector [3]. Group 3: Industrial Focus - The industrial sector presents the greatest potential for energy-saving advancements, as it is a significant contributor to energy consumption and carbon emissions [4]. - Key areas for energy efficiency improvements in industry include waste heat recovery, motor upgrades, and intelligent control of air conditioning systems [5]. Group 4: Urbanization and Energy Efficiency - Urbanization is identified as a major area for energy-saving potential, with estimates suggesting that a 1% increase in urbanization could lead to an additional 60 million tons of standard coal consumption [5]. - Despite rapid growth in building area, energy-efficient buildings remain a small proportion, and there is a significant gap in energy-saving standards compared to developed countries [5]. Group 5: Systematic Approach - The energy-saving service sector is transitioning from single measures to comprehensive energy services, integrating advanced technologies and digital solutions to enhance energy utilization across various fields [5][6]. - A systematic approach to energy-saving is necessary, requiring collaboration among various stakeholders to overcome existing challenges and promote a culture of energy conservation [6].

Core Viewpoint - The consensus among industry leaders is to enhance upstream and downstream resource integration, strengthen customer service and comprehensive energy service capabilities, and utilize new AI technologies to improve operational efficiency [1][8]. Industry Challenges - The urban gas industry is undergoing deep adjustments due to changes in business models, increased safety costs, and complex international situations, which pose new challenges for company development [1][4]. - The industry has transitioned from a decade of rapid growth to a more saturated market, with major players and numerous small companies creating a fragmented landscape [4]. - The operating environment for urban gas companies is becoming less optimistic due to intensified safety regulations, rising costs, and international market fluctuations caused by geopolitical events like the Russia-Ukraine conflict [4][5]. Financial Performance - Urban gas companies have seen a decline in net profits, shifting from double-digit growth to single-digit or even negative figures, largely due to reduced margins in gas connection services [5]. - The engineering installation business has also been negatively impacted by the ongoing downturn in the real estate market, leading to significant revenue and margin declines [5]. Pricing and Market Dynamics - The pricing structure in the urban gas sector is characterized by a mismatch between upstream pricing controlled by major oil companies and government-regulated downstream sales prices, which limits flexibility [5][6]. - Companies are experiencing pressure from gas price inversions, particularly in regions like Wuhan, where selling gas incurs losses [5]. Infrastructure and Investment - Companies are investing heavily in upgrading aging pipeline networks, with Shanghai Gas completing 770 kilometers of pipeline renovations and planning to invest around 10 billion yuan for an additional 900 kilometers [6][8]. - The strategic focus includes enhancing local high-pressure gas networks and improving interconnectivity with other regions to ensure stable gas supply [8]. Customer Service and Technological Integration - Companies are recognizing the need to diversify energy services to meet the evolving demands of industrial clients, who now require various forms of energy beyond just gas [9]. - The adoption of AI and digital technologies is seen as crucial for reducing operational costs and improving service efficiency, with initiatives like the installation of smart gas meters being implemented [9].

Core Insights - The natural gas industry in China has experienced rapid growth over the past decade, with apparent consumption expected to exceed 4260.5 billion cubic meters in 2024, marking an 8% year-on-year increase and doubling from 1848 billion cubic meters in 2014 [2][3] - Despite optimistic forecasts, city gas companies face significant challenges, including operational pressures from an imperfect pricing mechanism and competition from alternative energy sources as electrification increases [3][4] Industry Growth and Challenges - The National Development and Reform Commission projects that by 2030, natural gas will account for approximately 15% of China's primary energy consumption, up from 8.5% in 2023, indicating a need for continued growth in the sector [2][3] - City gas companies are experiencing pressure on sales revenue, primarily relying on commercial gas sales to subsidize residential gas sales, which is becoming increasingly challenging [3][4] Transformation of City Gas Companies - City gas companies are transitioning from being mere gas suppliers to becoming comprehensive energy service providers, reflecting a shift in market demands [4][5] - The focus is shifting from quantity of gas supplied to quality of service, emphasizing technological innovation and rapid response to new market conditions [4][5] Future Directions - Companies are exploring diversified gas supply models, efficient emergency response mechanisms, and digital governance systems to enhance service delivery [4][5] - The integration of AI and digital technologies is being considered to reduce costs and improve service efficiency in the labor-intensive gas industry [5]

Core Viewpoint - The collaboration between major Chinese oil companies and electric vehicle manufacturers is accelerating the development of charging and battery swapping infrastructure, which is crucial for the growth of the electric vehicle market in China [2][8]. Group 1: Infrastructure Development - Sinopec and BYD have successfully established China's first megawatt fast charging station in Shenzhen, which is part of a broader initiative to create a comprehensive energy service network [2][3]. - China National Petroleum Corporation (CNPC) has opened its first supercharging station in Shanghai, equipped with multiple high-capacity charging units to cater to various user needs [4]. - The partnership between CATL and Sinopec aims to build at least 500 battery swapping stations this year, with a long-term goal of expanding to 10,000 stations nationwide [2][3]. Group 2: Strategic Partnerships - Sinopec and CATL have signed a cooperation agreement to leverage their respective strengths in energy infrastructure and battery technology for the development of battery swapping stations [3][6]. - CNOOC has partnered with NIO to promote battery swapping models, with plans to create a comprehensive energy service area that integrates oil, solar power, supercharging, and battery swapping [4][6]. Group 3: Market Trends and Opportunities - The rural areas are emerging as a new growth point for the electric vehicle market, prompting major oil companies to engage in the development of charging infrastructure in these regions [5][8]. - The transition from traditional energy suppliers to integrated energy service providers is reshaping the competitive landscape, with oil companies aiming to capture new market shares in the electric vehicle sector [2][8]. Group 4: Future Outlook - The ongoing development of charging networks is expected to provide comprehensive coverage across urban and rural areas, enhancing the convenience of electric vehicle usage [10]. - Innovations in charging speed, battery life, and energy storage efficiency are anticipated, which will further improve the user experience in the electric vehicle market [10]. - The exploration of diverse business models, including energy retail and data operations, is likely to create a comprehensive energy service ecosystem [10].

Group 1: Research Basic Information - The research object is Jingwei Co., Ltd., and the reception time is May 20, 2025. The listed company's reception staff includes the chairman Ye Xiaohua, the financial controller Huang Danyu, the board secretary Xu Jianzhen, the independent director Wang Fengxiang, and the sponsor representative Li Shouwei [16] Group 2: Detailed Research Institutions - The institution-related personnel are others, and the reception objects are all investors who participated in the company's 2024 annual performance briefing online [19] Group 3: Main Content Data - To enhance market competitiveness, the company will innovate in technology and service models, consolidate its integrated power service capabilities, and strengthen cooperation with strategic partners [23] - The significant decline in net profit in 2024 was mainly due to the overall decrease in industry gross profit margin and the narrowing of profit space [24] - The company is making arrangements in the development and construction of new energy assets according to industry and its own development [25] - The company has made arrangements in energy storage technology and market [27] - The company is actively looking for overseas market opportunities and will select potential target markets for expansion [27] - The company aims to become a leading integrated energy service operator in China, and will strengthen its integrated power service capabilities and build a comprehensive energy service system [28] - The company's short-term financial situation will not be under pressure due to sufficient funds and good bank credit [29] - The company has a sound internal control process to ensure the authenticity, accuracy, and completeness of financial data [31] - The company's battery remote online capacity verification system can achieve functions such as remote real - time monitoring and fault warning, and can be widely used in multiple fields [31]

Group 1: Market Competitiveness - The company aims to enhance its market competitiveness through over 10 years of experience in the power and renewable energy sectors and over 20 years of digital expertise, focusing on technological and service model innovations [2][3] - The company plans to strengthen its integrated service capabilities in power planning, design, engineering construction, and operation and maintenance, along with developing a one-stop smart application platform [3] Group 2: Financial Performance - The significant decline in net profit for 2024 is attributed to a decrease in overall industry gross margins, leading to a narrower profit margin [3] - The company has sufficient funds and good banking credit support, ensuring that short-term financial conditions will not be under pressure despite long investment cycles in renewable energy projects [4] Group 3: Future Investments and Strategies - The company is actively investing in the development and construction of renewable energy assets, with plans for new capital expenditures based on industry and internal development conditions [3] - The company is exploring opportunities in overseas markets, evaluating potential target markets based on market demand and its own business advantages [4] Group 4: Technological Developments - The company has established a layout in energy storage technology and market, indicating a commitment to innovation in this area [3] - The online remote battery capacity testing system allows for real-time monitoring, fault warning, health assessment, and lifespan prediction, enhancing operational efficiency and safety across various sectors [4] Group 5: Internal Controls and Reporting - The company has a comprehensive internal control process in place to ensure the authenticity and accuracy of financial data during the reporting process [4] - The recent investor relations activity did not involve any undisclosed significant information [4]

Group 1: Transformation Strategy - The company aims to transform into a comprehensive energy service provider, focusing on expanding integrated energy service projects and establishing a "investment, construction, operation, and maintenance" platform [2][3]. - In 2024, the company completed an initial investment of 50 million yuan in a storage mother fund and established a storage subsidiary fund with a total scale of 400 million yuan, targeting projects like independent storage power stations and integrated solar-storage-charging stations [2][3]. Group 2: Financial Performance - In 2024, the company reported total revenue of 443 million yuan and a net profit of 21.91 million yuan, with total assets of 2.013 billion yuan and net assets of 1.485 billion yuan by the end of the year [7][8]. - The company achieved a marginal contribution of over 60 million yuan from electricity business and capacity fee income exceeding 48 million yuan [5][8]. Group 3: Project Development and Operations - The company successfully completed the commercial storage project with a total investment of 9.39 million yuan, generating revenue of 1.22 million yuan in its first year of operation [3]. - The company signed contracts worth over 60 million yuan for the restart of a 300MW gas turbine power station in Qinghai [3]. Group 4: Asset Management and Optimization - The company dynamically adjusted its electricity marketing and fuel procurement strategies, completing an electricity supply of 510 million kWh and recovering over 220 million yuan from asset management activities [5][9]. - The company successfully transferred 40% of its equity in Huizhou Xiefu, recovering 57.89 million yuan [5]. Group 5: Market Position and Competitive Advantages - The company leverages its state-owned enterprise advantages, industry expertise, and a solid asset base to enhance its competitiveness in the energy service market [6][9]. - The company has accumulated significant experience in the storage sector through independent storage power stations and photovoltaic projects, positioning itself well for future growth [7][12]. Group 6: Future Outlook - The company plans to focus on optimizing its operational management and enhancing its core value while actively seeking new development opportunities [10]. - The new energy and storage sectors are expected to see rapid growth, with the installed capacity of new storage projects reaching 73.76 million kW by the end of 2024, marking a 130% increase from the previous year [11][12].

Summary of Jiangsu Guoxin Conference Call Company Overview - Jiangsu Guoxin reported a revenue of 36.933 billion yuan for 2024, a year-on-year increase of 6.83% [2][3] - Net profit reached 5.073 billion yuan, up 46.43%, with attributable net profit to shareholders at 3.238 billion yuan, marking a 73.12% increase, a historical high [2][3] - In Q1 2025, revenue was 7.76 billion yuan, a decline of 14% year-on-year, while attributable net profit was 864 million yuan, an increase of 11.1% [2][3] Key Financial Metrics - Total assets grew by 1.6% in Q1 2025 [2][3] - The average market price of electricity in Jiangsu for 2025 is 408.98 yuan/MWh, with coal-fired power long-term contract prices at 412.45 yuan/MWh [2][5] - The cost of coal-fired power in Jiangsu for 2025 is 4.1356 yuan/kWh, compared to 4.16 yuan/kWh in Shanxi [11] Industry Dynamics - The Jiangsu electricity market is rapidly advancing towards a spot market, with a target for full coverage by the end of 2025 [2][8] - The average coal price in Jiangsu is around 910 yuan, down approximately 130 yuan year-on-year, with expectations for further declines in Q2 2025 [10][12] - The coal supply structure is shifting, with long-term coal contracts now accounting for 70%-75% of total supply, down from previous levels [20][21] Future Projects and Growth - Jiangsu Guoxin plans to commission multiple projects in 2025, including the Binhai Port Airport and two 1 million kW units at the Shazhou and Xinjiang power plants, which are expected to enhance asset growth and operational efficiency [2][6] - The company has secured annual electricity arrangements and long-term contracts for the new units, ensuring supply reliability in the southern Jiangsu region [16] Market and Pricing Strategies - The company is exploring comprehensive energy services, including renewable energy, storage, and virtual power plants, to adapt to market demands [4][30] - The pricing mechanism in Shanxi allows for fixed prices during peak demand periods, with opportunities for arbitrage in non-peak periods [19][17] Profitability and Cost Management - Coal price fluctuations significantly impact profitability, with strategies in place to manage costs and maintain profit margins despite market volatility [22] - The company maintains a stable dividend policy, with expectations for continued stability in future distributions [27][28] Regulatory and Market Outlook - The national push for a unified electricity market aims to balance regional disparities, with Jiangsu's electricity demand expected to fluctuate due to rapid development in renewable energy [23][24] - The company is committed to enhancing its market performance and exploring new avenues for growth in line with state-owned enterprise management requirements [29][30] Conclusion - Jiangsu Guoxin is positioned for growth through strategic project investments and market adaptations, while navigating challenges in pricing and supply dynamics within the evolving energy landscape.