Summary of Guodian NARI's Conference Call Company Overview - Guodian NARI achieved a revenue of 57.32 billion yuan in 2024, representing a year-on-year growth of 8.76% [2] - The net profit attributable to shareholders was 7.61 billion yuan, with a year-on-year increase of 6.06% [2] - The company was recognized as a benchmark enterprise for scientific and technological reform by the State-owned Assets Supervision and Administration Commission (SASAC) [2] Financial Performance - In Q1 2025, Guodian NARI reported a revenue of 8.895 billion yuan, a nearly 15% increase year-on-year, and a net profit of 1.68 billion yuan, up 14.14% [11] - The company plans to increase its dividend payout ratio to 60% of net profit attributable to shareholders and has initiated a share buyback plan of 500 million to 1 billion yuan [2][9] Business Segment Performance - **Smart Grid**: Revenue reached 28.468 billion yuan, growing 10.7% with a gross margin of 29.52% [4] - **Digital Energy**: Revenue was 12.36 billion yuan, up 11.05% with a gross margin of 22.41% [4] - **Low Carbon Energy**: Revenue increased by 26.43% to 12.185 billion yuan, though gross margin decreased by 0.94 percentage points [6] - **Industrial Internet**: Revenue fell by 9.5% to 2.867 billion yuan, but gross margin improved by 0.94 percentage points [6] - **International Business**: Revenue surged by 135.14% to 3.279 billion yuan, now accounting for 5.7% of total revenue [7] Research and Development - R&D investment for 2024 was 4.032 billion yuan, representing 7.02% of revenue [8] - The company focuses on technologies related to source-network-load-storage and foundational technologies, with several projects recognized as internationally leading [8] Future Outlook - For 2025, Guodian NARI expects a revenue growth of 12.34% and plans to invest 933 million yuan in capital expenditures for production line upgrades [12] - The company anticipates significant revenue from ultra-high voltage projects, estimating around 1.5 billion yuan in revenue from these projects [5][19] - The international market remains a key growth area, particularly in the Middle East for large-scale energy storage projects [12][31] Strategic Initiatives - The company is undergoing internal reforms to enhance efficiency, including management restructuring and streamlining organizational structure [13] - Guodian NARI is adapting to the regional joint procurement policy, which may impact its distribution equipment business [21][22] Market Trends and Challenges - The new generation dispatch system is expected to improve market conditions and provide growth opportunities [27] - The company faces challenges in promoting energy storage solutions in developed markets but remains optimistic about expanding its market share [31] Conclusion Guodian NARI is positioned for continued growth through strategic investments in R&D, a focus on international markets, and a commitment to enhancing shareholder returns through dividends and share buybacks. The company is navigating challenges in the domestic and international landscape while capitalizing on emerging opportunities in smart grid and energy storage technologies.