Core Viewpoint - The report highlights the performance and strategic developments of Shango New Energy, emphasizing its financial results and growth potential in the integrated AI computing ecosystem [1][2][3] Financial Performance - For the first half of fiscal year 2025, the company reported total revenue of RMB 2.4 billion and net profit of RMB 287 million, aligning with previous estimates [1] - Profit improvement was driven by three main factors: enhanced profits from joint ventures and associates, refinancing to lower-cost financing, and effective cost control leading to reduced management expenses [1] Wind Power Development - As of June 30, 2025, the total installed capacity of wind power projects under construction and approved reached 4.9 GW, with 13 projects of 100 MW or more [2] - The company has a grid-connected wind power project capacity of 234 MW in Shandong and a wind power reserve of 991 MW, which could exceed 1 GW upon completion, representing a growth of over 300% [2] Integrated AI Computing Ecosystem - The collaboration with Century Internet for IDC business aims to create a synergistic effect, utilizing both "base-type" and "city-type" operations [2] - The Ulanqab base's single-unit design power density reaches 8 kW, 60% higher than traditional data centers, which will support AI infrastructure with green electricity once connected to the grid [2] Strategic Partnerships - A memorandum of understanding with Shandong High-speed Group aims to promote strategic cooperation, enhancing mutual advantages for high-quality development [3] - The comparison with Equinix, a global leader in AIDC, highlights the establishment of a competitive moat for Shango New Energy through deep engagement in renewable energy and green asset valuation premiums [3] ESG and Financial Strategy - Equinix's deep involvement in renewable energy, green bond financing, and ESG ratings is expected to lower WACC and operational costs, thereby increasing ROIC and attracting long-term capital [3] - The trend towards ESG is anticipated to enhance the valuation of "green assets," contributing to sustained growth in corporate market value [3]

Group 1: Financial Performance - In the first half of 2025, the company reported total revenue and net profit of RMB 2.4 billion and RMB 287 million, respectively, aligning closely with updated forecasts of RMB 2.479 billion and RMB 285 million [1] - Gross profit reached RMB 1.203 billion, with a gross margin of 50.2%, while administrative expenses decreased to RMB 201 million, reflecting ongoing cost optimization and operational efficiency efforts [1] - Net profit attributable to shareholders increased by 4% year-on-year, driven by improvements in joint ventures, refinancing to lower financing costs, and reduced management expenses [1] Group 2: Wind Power Development - As of June 2025, the company had a total installed capacity of 4.9 GW in construction and approved projects, including 13 projects of 100 MW or more and 890 MW of projects awaiting approval [1] - The company’s wind power project capacity in Shandong is 234 MW, with an additional 991 MW in reserve, indicating a potential increase of over three times in grid-connected projects once all reserves are completed [1] - The company is also pursuing offshore wind projects in Shandong [1] Group 3: AI and Data Center Integration - By the end of 2024, China's computing power is expected to reach 414 EFlops, with a projected compound annual growth rate of 44% from 2024 to 2026, leading to significant increases in data center capacity and electricity consumption [2] - The company has formed a partnership with Century Internet for IDC business, utilizing both "base" and "city" models, with the Ulanqab base achieving a power density of 8 kW per rack, 60% higher than traditional data centers [2] - The integration of green electricity from the Ulanqab project is anticipated to provide substantial support for AI infrastructure [2] Group 4: Strategic Partnerships and Valuation - The company is collaborating with Shandong High-Speed Group to enhance integrated energy capabilities, aiming for mutual benefits and high-quality growth [3] - Compared to global leader Equinix, the company is building a competitive edge through its integrated AI computing ecosystem and deep involvement in renewable energy [3] - The company's stock is currently undervalued at HKD 2.15, with a market capitalization of HKD 48.3 billion, and a forward P/E ratio of 16, below the industry average of 20, presenting an attractive investment opportunity [3]