Group 1: General Information - The report is about a research on Longyuan Technology in the power equipment industry on May 15, 2025 [1][2][17] - The listed company's reception staff includes the Party Secretary and Chairman Qu Zengjie, Deputy Party Secretary, General Manager and Director Liang Chengyong, Chief Accountant and Board Secretary Liu Keleng, and Independent Director Zhao Yi [17] - The reception object is mainly investors' online questions [20] Group 2: Company Responses to Investor Questions Business Expansion and Development - In 2025, the company will increase R & D, strengthen project management, control costs, expand the market, and optimize organizational efficiency to achieve business goals [24] - As of now, there are no plans for asset injection, integration with the major shareholder, or industrial expansion; relevant information will be disclosed if there are plans [24][25][28] Financial Performance - The company's 2024 annual revenue increased by 13.06% year - on - year [24] - In Q1 2025, the company's performance increased well due to a large increase in peak - shaving revenue from the Lingwu electric boiler project, and the company will monitor local power policies [25] - Dongying Longyuan, in which the company participates, achieved an operating income of 36.83 million yuan and a total profit of 4.06 million yuan in 2024 [28] Project Status - The company completed the first Hebei Longshan molten salt heat storage and extraction project in 2025 and is summarizing experience for future projects [25] - The 2023 ALLAM cycle power generation project completed its research and passed acceptance, and the company will continue to monitor its engineering application [27] Technology Application - The company currently has no participation in thermonuclear fusion experiments [29] Performance Outlook for 2025 - The company will increase R & D, improve project management, and manage accounts receivable, and is confident in achieving business goals [29] Market Value Management - Measures for market value management in 2025 include managing production and operations, R & D, investor relations, and maintaining a stable cash - dividend policy [29] - The company attaches great importance to investor relations, will seize industry opportunities, and aims to improve overall efficiency and profitability [30]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown significant growth in Q1 2025, with revenue reaching 619 million yuan, a year-on-year increase of 317.34%, and net profit attributable to shareholders at 69 million yuan, up 990.26% [1] - The substantial growth is primarily driven by the completion of the "Fish-Solar Complementary" project, which contributed significantly to the company's performance [1] - The company is positioned to benefit from the increasing demand for coal power upgrades and auxiliary equipment, with a projected market potential of 700 million to 2.9 billion yuan over the next three years [2] - The company is actively expanding into international markets and diversifying its product offerings, which are expected to become new growth engines for future performance [3] Financial Summary - The company is projected to achieve revenues of 1.987 billion yuan in 2025, with a year-on-year growth rate of 51.2%, and net profits of 212 million yuan, reflecting a growth rate of 128.2% [4] - Earnings per share (EPS) are expected to be 1.72 yuan in 2025, with corresponding price-to-earnings (P/E) ratios of 15.1, 12.4, and 10.4 for 2025, 2026, and 2027 respectively [4][5] - The financial outlook indicates a steady increase in revenue and profit margins, with net profit margins projected to improve from 8.4% in 2023 to 11.1% by 2027 [4]

Investment Rating - Maintain "Buy" rating for the electricity sector [3] Core Viewpoints - March electricity consumption growth was 4.8%, highlighting the importance of coal power upgrades and flexible regulation value [10][12] - The national electricity consumption in March reached 828.2 billion kWh, with a year-on-year growth of 4.8% [12] - The new three-year coal power upgrade plan emphasizes deep peak regulation and energy-saving carbon reduction [11][12] Summary by Sections Electricity Consumption - In March, the electricity consumption by industry was as follows: primary industry 10.6 billion kWh (9.9% growth), secondary industry 557.8 billion kWh (3.8% growth), tertiary industry 148.4 billion kWh (8.4% growth), and urban and rural residents 111.4 billion kWh (5.0% growth) [12][66] - Cumulative electricity consumption from January to March was 238.46 billion kWh, with a year-on-year growth of 2.5% [66] Power Generation - In March, industrial power generation was 778 billion kWh, with a year-on-year growth of 1.8% [12] - Coal power generation in March decreased by 2.3%, while hydroelectric and nuclear power generation increased by 9.5% and 23.0%, respectively [12][10] Coal Power Upgrade Plan - The new coal power upgrade plan (2025-2027) aims to enhance existing units and establish new ones with improved performance metrics [11][12] - Key upgrade indicators include minimum output levels, load change rates, and carbon emission reductions [11][12] Investment Recommendations - Focus on coal power sector opportunities, with coal prices dropping to 674 RMB/ton, supporting improved profitability [13] - Recommended stocks include Huadian International, Waneng Power, and Zhejiang Energy, among others [7]

Investment Rating - Maintain "Buy" rating for the electricity sector [3] Core Viewpoints - In March, national electricity consumption growth was 4.8%, with significant growth in the internet and automotive manufacturing sectors [10][12] - The future three-year coal power upgrade action plan emphasizes the importance of coal power upgrades and flexible adjustment capabilities [11][12] Summary by Sections Electricity Consumption - In March, total electricity consumption reached 828.2 billion kWh, a year-on-year increase of 4.8%. By sector, the first, second, and third industries, along with urban and rural residents, consumed 106, 557.8, 148.4, and 111.4 billion kWh respectively, with growth rates of 9.9%, 3.8%, 8.4%, and 5.0% [12][65] - Cumulative electricity consumption from January to March was 23,846 billion kWh, up 2.5% year-on-year [12][66] Power Generation - In March, industrial power generation was 778 billion kWh, a year-on-year increase of 1.8%, with a narrowing decline in thermal power generation [12][10] - Water and nuclear power generation increased by 9.5% and 23.0% respectively, while wind and solar power generation growth slowed [12][10] Coal Power Upgrade Plan - The National Development and Reform Commission and the National Energy Administration released a new coal power upgrade action plan for 2025-2027, focusing on enhancing existing units and developing new generation units with improved performance indicators [11][12] - Key upgrade requirements include deep peak regulation, load change rates, and clean carbon reduction measures [11][12] Investment Recommendations - Emphasize investment opportunities in the electricity sector, particularly in thermal power stocks such as Huadian International, Waneng Power, and Zhejiang Energy, as well as in leading companies in thermal power upgrade equipment like Qingda Environmental Protection [6][7] - Recommend focusing on undervalued green electricity sectors, including Hong Kong-listed green electricity and wind power operators [6][7]