Core Viewpoint - Guangdong Power Development Co., Ltd. (referred to as "the company") is facing significant losses in its coal and gas power segments while its renewable energy sector is generating modest profits, prompting a strategic shift towards renewable energy investments [1][2]. Financial Performance - In Q1, the company's coal power segment reported a net loss of approximately 1.42 billion yuan, and the gas power segment incurred a loss of about 2.27 billion yuan, while the renewable energy segment contributed a profit of around 36 million yuan [1]. - The company's overall revenue has declined due to increased competition in the Guangdong electricity market and a 10% year-on-year decrease in electricity generation [1][2]. Market Conditions - The average transaction price for bilateral negotiations in the Guangdong electricity market has decreased significantly, with the average price falling by 73.77 yuan per thousand kilowatt-hours compared to the previous year [2]. - The company is closely monitoring coal market prices and has a procurement structure where domestic and imported coal each account for about 50% of its total coal supply [2]. Investment Plans - The company has initiated a transformation plan with an annual investment of approximately 160 billion yuan, focusing on expanding renewable energy capacity alongside coal power expansion [1][3]. - By 2025, the company expects to add around 2 million kilowatts of new renewable energy capacity, with 120 million kilowatts already planned for 2025 [3]. Project Development - Currently, the company has 800 million kilowatts of coal power under construction, with an expected 300-500 million kilowatts to be operational by 2025 [3]. - The company has also planned investments in technological upgrades and acquisitions, with a focus on both thermal and renewable energy projects [3].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The economic growth in the central Jiangsu region is rapid, but the industrial layout is still traditional, and the tax - source cultivation ability lags behind that of the southern Jiangsu region. The government's fiscal revenue is under pressure due to the real - estate market adjustment, resulting in dual debt pressure. However, significant progress has been made in debt risk prevention and control. The bond - issuing urban investment enterprises in the three cities in central Jiangsu have prominent problems such as large debt scale, weak profitability, and over - dependence on government subsidies, and they need to transform and resolve debts [3][38][39]. Summary According to the Table of Contents 1. Debt Cause Analysis - **Economic and Demographic Situation**: The central Jiangsu region has strong economic development momentum, with a compound GDP growth rate of 6.32% in the past five years. However, the population growth in some cities is slow, and the urbanization rate and per - capita disposable income still have room for improvement [5]. - **Industrial Structure**: The fixed - asset investment in the three cities in central Jiangsu has promoted industrial transformation, but the industrial structure is still "secondary - tertiary - primary", and the proportion of the tertiary industry is relatively low compared to the provincial average. The traditional industries in each city are relatively strong, and the emerging industries are weak, with low tax - creation ability [7]. - **Fiscal Revenue**: From 2020 - 2024, the compound growth rate of the general budget revenue in the three cities in central Jiangsu was 2.9%. The fiscal budget balance rate is mostly below 65%, and the fiscal self - sufficiency rate is low. The government - funded revenue is under pressure due to the real - estate market adjustment, and the urban investment platforms' land - acquisition behavior has increased their debt burden [11]. - **Debt Scale**: The local debt in the central Jiangsu region has expanded rapidly in the past five years, with a compound growth rate of 13.6%. Since 2021, the broad - based debt ratio has been on the rise [14]. 2. Main Debt - Resolution Measures and Progress - **Policy and Measures**: The Jiangsu provincial government implements a full - scale debt classification management system. The three cities in central Jiangsu have formulated corresponding management policies, including debt scale control, cost reduction, and platform transformation [18]. - **Specific Actions**: Each city has introduced a series of measures, such as debt risk warning mechanisms, budget management reforms, and platform company integration. As of March 1, 2025, 105 government financing platforms in the three cities have exited. The financing costs in each city have also been significantly reduced [19][21]. 3. Observation of the Fundamentals of Bond - Issuing Urban Investment Enterprises in the Three Cities in Central Jiangsu - **Enterprise Hierarchy and Credit Rating**: As of December 31, 2024, there were 151 bond - issuing urban investment enterprises in the three cities in central Jiangsu, mainly at the district - county level, and the credit ratings are mainly AA and AA+. The overall quality of the district - county - level enterprises is relatively weak [24][25]. - **Asset and Financial Leverage**: The asset scale of the bond - issuing urban investment enterprises is increasing, mainly driven by government - related assets. The financial leverage is also rising [24]. - **Operating Performance**: The operating cash - generating ability of the enterprises is limited, and they are highly dependent on government subsidies. The cash - recovery ability is acceptable, but the profitability of some enterprises is declining [31]. - **Debt Situation**: The scale of the existing interest - bearing debt is increasing, and the progress of debt scale reduction is average, but the financing cost has decreased significantly. The financing is generally tightening, and the effect of non - standard financing reduction is remarkable [24][33][36]. 4. Summary - The economic development in the central Jiangsu region is accompanied by dual debt pressure. Although progress has been made in debt control, the bond - issuing urban investment enterprises still face problems such as large debt scale and weak self - hematopoietic ability. They need to transform and resolve debts [38][39].