Core Viewpoint - The profitability of nuclear power companies in China is significantly impacted by the acceleration of market-oriented electricity trading, leading to a decline in net profits for both China Nuclear Power and China General Nuclear Power in the third quarter of 2023 [4][6]. Financial Performance - In the first three quarters of 2023, China Nuclear Power's net profit attributable to shareholders decreased by 10.42% to 8 billion yuan, while China General Nuclear Power's net profit fell by 14.14% to 8.576 billion yuan [6]. - In Q3 2023, China Nuclear Power's net profit dropped by 23.45% to 2.336 billion yuan, and China General Nuclear Power's net profit decreased by 8.81% to 2.624 billion yuan [6]. Market Impact - The decline in profitability is attributed to the increased participation in market-oriented electricity trading, which has led to a decrease in market electricity prices [6][7]. - The average market electricity price has fallen due to the accelerated construction of a unified national electricity market and increased competition from renewable energy sources [7]. Future Outlook - The transition from planned electricity to market electricity is expected to continue, with market trading volume projected to increase, leading to greater price volatility [9]. - The cancellation of the value-added tax refund policy for newly approved nuclear power units starting in November 2023 may increase tax burdens and cash flow pressures for companies, potentially affecting new project construction and R&D investments [9][10]. Strategic Responses - Nuclear power companies are preparing for market challenges by optimizing their nuclear energy operations and electricity sales [10]. - China Nuclear Power plans to track and study new market trading rules and implement various measures to secure favorable trading conditions [10]. - The company is focusing on cost control in the upstream nuclear fuel supply chain to ensure stable power generation efficiency [10].

Core Viewpoint - The profitability of Chinese nuclear power companies is significantly impacted by the decline in market electricity prices due to increased market transactions and competition from renewable energy sources [2][4]. Group 1: Financial Performance - In the first three quarters, China Nuclear Power's net profit attributable to shareholders decreased by 10.42% to 8.002 billion yuan, while China General Nuclear Power's net profit fell by 14.14% to 8.576 billion yuan [2]. - In Q3, China Nuclear Power's net profit dropped by 23.45% to 2.336 billion yuan, and China General Nuclear Power's net profit decreased by 8.81% to 2.624 billion yuan [2]. - The decline in profits is attributed to the impact of market electricity prices, with both companies indicating that increased participation in market transactions has led to lower market prices [2][3]. Group 2: Market Dynamics - The average market price for electricity has decreased due to the overall decline in market transaction prices, with specific regional impacts noted in Guangdong and Guangxi [3]. - The transition from "planned electricity" to "market electricity" has resulted in a significant increase in market transaction volumes, from 10.7 trillion kWh during the 13th Five-Year Plan to 23.8 trillion kWh during the 14th Five-Year Plan [4]. Group 3: Strategic Responses - In response to market challenges, nuclear power companies are preparing by optimizing their nuclear energy operations and electricity sales [5]. - China Nuclear Power plans to track and adapt to new electricity market trading rules expected to be released by the end of the year, aiming to secure favorable trading conditions [5]. - The company is focusing on equipment manufacturing localization and design optimization to enhance the economic viability and competitiveness of new nuclear power units [5][6]. Group 4: Cost Management - China Nuclear Power is implementing measures to control upstream nuclear fuel costs, which account for approximately 20% of its operating costs [6]. - The company has secured stable long-term fuel costs by purchasing natural uranium and processing it into fuel components, alongside investments in uranium supply stability [6].