Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a revenue of 3.674 billion yuan for the first three quarters of 2025, a year-on-year decrease of 28.88%. The net profit attributable to the parent company was 359 million yuan, down 60.56% year-on-year. In Q3 2025, the revenue was 1.192 billion yuan, a decline of 29.96% year-on-year and 12.17% quarter-on-quarter. The net profit for Q3 was 35 million yuan, a significant drop of 88.77% year-on-year and 82.54% quarter-on-quarter [2][5] Summary by Sections Smart Meter Segment - In Q3 2025, the company announced several large orders, including winning bids totaling approximately 142 million yuan in the State Grid's electric meter procurement and 244 million yuan in the Southern Grid's metering equipment framework. Internationally, the company has established a presence in over 50 countries and regions, with a significant order of 383 million yuan for smart meters from Australia [12] New Energy Segment - The company continues to develop various renewable energy projects, holding a total of 1.17 GW of renewable energy stations as of the end of Q3 2025. It has also expanded its green electricity trading and green certificate sales business across several provinces [12] Financial Data - The company reported a period expense ratio of 19.27% in Q3 2025, an increase of 4.18 percentage points quarter-on-quarter, primarily due to lower financial expenses in Q2. The operating cash flow turned positive for the first time in the year [12] Future Outlook - The demand for smart meters is expected to increase due to new domestic distributed photovoltaic project regulations and opportunities in overseas markets. The company's smart meter business is anticipated to continue expanding, while the new energy business is expected to see concentrated shipments in Q4 [12]

Core Viewpoint - The publication of the "Basic Rules for Metering and Settlement in the Electricity Market" is a crucial step in the construction of a unified national electricity market, aimed at standardizing metering and settlement, protecting the rights of operating entities, and promoting the optimal allocation of electricity resources [3]. Group 1: Inheritance and Improvement of Existing Policies - The "Basic Rules" closely collaborate with the "Basic Rules for Electricity Market Operation," which outlines the overall operational framework of the electricity market. The responsibilities of market participants are aligned, requiring them to perform transactions based on accurate metering data for settlement [4]. - The "Basic Rules" deepen and supplement existing rules for the electricity spot market, ensuring that metering and settlement can promptly and accurately reflect market trading conditions, thus providing precise data support for subsequent trading decisions [5]. Group 2: Impact on the Electricity Market - The "Basic Rules" enhance market transparency by providing accurate and transparent metering and settlement data, allowing operating entities to clearly understand their electricity trading costs and revenues. This transparency increases trust in the electricity market and promotes active trading [6]. - The "Basic Rules" guide electricity resources towards more efficient utilization by highlighting cost differences among various generation methods and consumption patterns, encouraging the adoption of cleaner and more efficient technologies [7]. - The "Basic Rules" establish standardized operational norms for operating entities, requiring them to install metering devices and accurately report electricity usage data, which helps improve overall operational management and maintain order in the electricity market [9].

Core Viewpoint - The issuance of the "Basic Rules for Metering and Settlement in the Electricity Market" by the National Development and Reform Commission and the National Energy Administration aims to enhance market efficiency and fairness through standardized measurement and settlement processes [2][7]. Group 1: Data Management - Accurate metering data is fundamental for market efficiency, influencing the physical precision of electricity delivery and the overall transaction costs in the market [3]. - The rules establish a standardized framework for the data required for settlement, including archives, contracts, dispatch execution, metering, and pricing policies, thereby laying a foundation for unified settlement management [3][4]. - The rules also define measurement units at the national level, standardizing the format for quantity, price, and fee data across the electricity market [3]. Group 2: Process Coordination - The rules outline a clear workflow for metering and settlement, specifying the roles and responsibilities of market participants, grid companies, and market operators [4]. - This structured approach enhances operational efficiency and transparency in the electricity market, supporting the development of a unified national electricity market [4]. Group 3: Efficiency Improvement - The rules introduce a "daily clearing and monthly settlement" requirement, with precise timelines for each step in the settlement process, thereby improving efficiency and reducing cash flow cycles [5]. - Key deadlines include the issuance of settlement bases by trading institutions by the 8th working day of each month and the issuance of electricity bills by grid companies by the 10th working day [5]. Group 4: Fairness and Equity - Fairness is a fundamental principle of the electricity market, with the rules implementing measures to ensure timely, accurate, and traceable metering and settlement [6]. - The rules prohibit the establishment of unbalanced funds and require independent recording of each settlement item, ensuring clarity and accountability [6]. - In cases of metering data errors, the rules provide mechanisms for correction and compensation, safeguarding the rights of market participants [6]. Conclusion - The core objective of the rules is to create a "precise value settlement system" that aligns with modern electricity market needs, balancing efficiency and fairness while showcasing innovative institutional design [7].

Core Viewpoint - The release of the "Basic Rules for Measurement and Settlement in the Electricity Market" is a crucial step in the construction of a unified national electricity market, aimed at standardizing measurement and settlement processes, protecting the rights of market participants, and promoting the optimal allocation of electricity resources [2]. Group 1: Inheritance and Improvement of Existing Policies - The "Basic Rules" closely collaborate with the "Basic Rules for Electricity Market Operation," which outlines the overall operational framework of the electricity market, ensuring that market participants fulfill their trading results and utilize the transmission and distribution network accordingly [2]. - The "Basic Rules" provide detailed settlement methods for various trading types, enhancing operational specifications for transaction execution and ensuring tighter integration of all market operation segments [2]. Group 2: Deepening of Spot Market Rules - The "Basic Rules" deepen and supplement existing regulations for the electricity spot market, ensuring that measurement and settlement can promptly and accurately reflect market trading conditions, thus providing precise data support for subsequent trading decisions [3]. Group 3: Impact on the Electricity Market - The "Basic Rules" enhance market transparency by providing accurate and transparent measurement and settlement data, allowing market participants to clearly understand their trading costs and revenues, which increases trust and activity in the market [4]. - The rules guide electricity resources towards more efficient utilization by highlighting cost differences among various generation methods and consumption patterns, encouraging the adoption of cleaner and more efficient technologies [5]. - The "Basic Rules" establish operational standards for market participants, promoting compliance with regulations and improving overall operational management, thereby maintaining order in the electricity market [6].

Core Viewpoint - The National Development and Reform Commission and the National Energy Administration jointly issued the "Basic Rules for Metering and Settlement in the Electricity Market" to maintain order in the electricity market and protect the legitimate rights and interests of market participants [3]. Group 1: Basic Concepts - Metering refers to the measurement and recording of data such as electricity quantity and power to meet the settlement needs of the electricity market [5]. - Settlement includes forming the basis for settlement and calculating electricity fees, where the electricity trading institution provides settlement basis and services to market participants and grid enterprises [6][7]. Group 2: Principles and Scope - The basic principles of the settlement process are legality, fairness, and impartiality [9]. - The settlement cycle is defined as a natural month, with "daily clearing and monthly settlement" for regions operating in the spot market [10]. Group 3: Rights and Obligations - Electricity quantity is measured in megawatt-hours (MWh) or kilowatt-hours (kWh), while electricity fees are calculated in yuan, and electricity prices are expressed in yuan per MWh or yuan per kWh [13]. Group 4: Market Participants - Market participants are responsible for trading, signing and fulfilling contracts, disclosing and providing data, verifying settlement basis and electricity bills, and submitting settlement guarantees [15]. Group 5: Settlement Management - Settlement preparation involves collecting and summarizing the necessary basic data within a specified timeframe, which includes market participant profiles, transaction contract data, and electricity measurement data [20]. - The settlement basis is compiled and published by the trading institution, with a formal settlement basis released by the 8th of each month [23]. Group 6: Electricity Fee Settlement - The electricity bill is issued by the 10th of each month, with payment from power generation enterprises to the grid within five days [26]. - Users or electricity sales companies are required to pay according to agreements, with overdue payments subject to collection actions [27]. Group 7: Supervision and Management - The regulatory bodies include market participants, market operation institutions, and grid enterprises, with dispute resolution mechanisms in place [29][31].

Core Viewpoint - The article discusses the implementation of the "Basic Rules for Measurement and Settlement in the Electricity Market" issued by the National Development and Reform Commission and the National Energy Administration to enhance the electricity market's order and protect the rights of market participants [4][27]. Summary by Sections Basic Concepts - Measurement refers to the actions of measuring and recording data such as electricity quantity and power to meet the settlement needs of the electricity market [5]. - Settlement includes forming the basis for settlement and calculating electricity fees, where the electricity trading institution provides settlement basis and services to market participants [6][7]. Scope of Application - The rules apply to various types of electricity market measurement and settlement [8]. Basic Principles - The principles of measurement and settlement are based on legality, regulation, fairness, and justice [9]. Settlement Cycle - The settlement cycle is defined as a natural month, with the spot market operating on a "daily clearing and monthly settlement" basis [11]. Rights and Obligations - Market participants have rights and obligations including trading participation, contract signing and fulfillment, data disclosure, and settlement guarantee submission [12]. Measurement Management - Measurement devices are managed by grid enterprises, with calibration performed by measurement testing institutions [18]. Settlement Management - Settlement preparation involves collecting and summarizing the necessary basic data within a specified timeframe, which includes market participant data, transaction contracts, and electricity measurement data [21]. Settlement Basis Compilation and Release - The process for compiling and releasing settlement basis includes the calculation of auxiliary service market fees and the issuance of formal settlement basis by the trading institution [23][24]. Dispute Resolution - Dispute resolution mechanisms include mediation, arbitration, and judicial pathways, with regulatory bodies overseeing compliance with relevant regulations [27]. Implementation Timeline - The rules will take effect from October 1, 2025 [27].