Group 1: Subsidy and Financial Performance - The company received a total of 1.888 billion CNY in subsidies in the first three quarters of 2025, with recoveries of 1.694 billion CNY, 1.083 billion CNY, and 791 million CNY for the years 2022-2024 respectively. As of the end of Q3 2025, the balance of receivable renewable energy subsidies is 5.498 billion CNY [3][4] - The company has three projects that are included in the subsidy list but did not pass compliance checks, with a total installed capacity of 240,000 kW [4][5] Group 2: Pricing Strategy and Market Adaptation - In response to the implementation of Document No. 136, the company is actively adjusting its pricing strategy to adapt to market fluctuations and explore multiple value opportunities [3][4] - The company combines medium to long-term contracts with spot market participation, locking in most of its electricity sales while leaving a portion for high-price peak periods [4][5] Group 3: Investment Focus and Project Development - As of June 2025, the company has an operational installed capacity of 19.9255 million kW and is focusing on investment returns, shifting from photovoltaic to wind energy and from the northwest to the central and eastern regions [4][5] - The company’s ongoing and planned projects are primarily located in Xinjiang, Qinghai, Gansu, Shaanxi, Hebei, and Guizhou [5][6] Group 4: Energy Storage and Technological Development - The company is increasing its investment in energy storage projects, having already implemented a 50,000 kW electrochemical storage project in Qinghai and is developing additional projects in various regions [5][6] - The company’s energy storage technologies include electrochemical storage, liquid compressed air storage, and flywheel storage, aimed at addressing industry challenges [5][6] Group 5: Market Trends and Challenges - Recent trends indicate a downward fluctuation in electricity market trading prices and an increase in curtailment rates due to a significant rise in renewable energy installations [6] - The curtailment issue is particularly pronounced in western provinces, while eastern coastal provinces like Jiangsu, Shanghai, and Zhejiang have better absorption rates for renewable energy [6][6] Group 6: Management Assessment Criteria - The annual assessment of the company’s management includes performance metrics related to operational results, corporate governance, project expansion, market capitalization management, and party building [6]

Core Viewpoint - The introduction of the "531" policy marks a significant shift in China's renewable energy market, transitioning to a fully market-oriented pricing mechanism for new energy projects, with a clear distinction between existing and new projects based on their commissioning dates [1][4]. Group 1: Policy Changes - The National Development and Reform Commission and the Energy Administration have issued a notice promoting the market-oriented reform of renewable energy pricing, requiring all renewable energy projects to enter the electricity market [1]. - The "531" policy establishes June 1, 2025, as a critical date for differentiating between existing (stock) and new (incremental) projects, with existing projects maintaining stable revenue under current pricing policies [1][4]. - New projects after June 1, 2025, will not benefit from fixed pricing protections and will face potential revenue declines due to market-based pricing [1]. Group 2: Industry Response - Companies like Huaneng New Energy are accelerating project completions to qualify for the existing project category before the deadline [2]. - The distributed photovoltaic sector is experiencing heightened demand as projects that connect to the grid before May 1 can still receive full subsidies [2]. - In Guangdong, distributed photovoltaic installations have surged, with a record increase of 4.46 million kilowatts in April alone, reflecting a 94% year-on-year growth [2]. Group 3: Capacity and Growth Statistics - From January to April, China added 10,493 megawatts of photovoltaic capacity, a year-on-year increase of 74.56%, with April alone seeing a 214.68% increase compared to the previous year [3]. - Wind power installations also grew, with 1,996 megawatts added from January to April, representing an 18.53% year-on-year increase [4]. Group 4: Market Mechanisms and Future Outlook - The "136" document outlines the establishment of a sustainable pricing settlement mechanism for renewable energy, with local governments required to implement specific plans by the end of 2025 [4]. - The pricing mechanism for new projects will have defined upper and lower limits, providing a stable revenue expectation for approximately 12 years, despite uncertainties in pricing and volume [5]. - There are concerns regarding the exclusion of green certificate benefits for energy included in the sustainable pricing mechanism, which may impact the overall revenue for renewable energy projects [5][6].