Core Insights - The 2025 China Computing Power Conference main forum was held in Datong City, where seven computing power centers signed agreements to officially connect to the National Supercomputing Internet [1] - The National Supercomputing Internet aims to integrate supercomputing resources across the country, facilitating coordinated scheduling and widespread application of computing power [1] - The initiative, launched by the Ministry of Science and Technology in April 2023, has already provided over 1,600 software applications, more than 600 large models, and over 70 SaaS platforms to support various computing power demands [1] Group 1 - The connection of seven computing power centers marks a significant milestone, bringing the total number of backbone node computing centers in the National Supercomputing Internet to over 30 and more than 200 joint members [1] - The establishment of the "Supercomputing Internet Standard System" is a major advancement, which will have profound implications for the national layout of computing power and breaking regional barriers [1] - The inclusion of the National Cybersecurity Base (Wuhan) Computing Center will provide critical support for local technological innovation and digital economic upgrades [1] Group 2 - The Wuhan Data Bureau plans to leverage this connection to encourage local enterprises and research institutions to utilize supercomputing services, enhancing cross-city collaboration and improving the supercomputing ecosystem [2] - This initiative aims to solidify the foundation for high-quality development of Wuhan's digital economy [2]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **electric power industry** and its transition towards **high-quality development** influenced by policy document **No. 136** [1][2] - The role of **thermal power** is shifting from being the main power source to a **backup and peak regulation** role, with coal prices significantly impacting profitability [1][2] Core Insights and Arguments - **Coal Price Impact**: The price of coal has dropped significantly, with the northern port 5,500 kcal thermal coal index reaching a low of **620 RMB/ton**. This decline has positively affected the profitability of thermal power plants [1][6] - **Performance of Power Companies**: Major thermal power companies like **Jingneng** and **Huadian** reported strong performance in Q1, with continued growth expected in Q2 despite a slight decrease in thermal power generation [1][4] - **Hydropower Performance**: Hydropower companies have also performed well due to favorable water conditions and stable electricity prices, with notable performance from the **Yalong River** in Q2 [1][4] - **Green Power Transition**: The green power sector is moving towards quality over quantity, with expectations for new installations to slow down. The focus is on improving yield rates and addressing subsidy and pricing pressures [3][5][12][13] Additional Important Content - **Capacity Pricing Mechanism**: The capacity pricing mechanism is expected to enhance revenue stability for thermal power companies, with projections indicating that the recovery of fixed costs will increase from **30%-50%** in 2024-2025 to **50%-70%** by 2026 [9][10] - **Investment Recommendations**: The call suggests focusing on large thermal power companies with high market procurement ratios and strong resilience, such as **Jingneng** and **Huadian**. Additionally, smaller projects with stable returns, like waste-to-energy projects, are also recommended [8][24][26] - **Long-term Outlook**: The long-term outlook for the thermal power sector is positive due to the multi-revenue system that enhances stability and reduces dependence on coal prices. Companies are expected to increase dividend rates as profitability stabilizes [11][24] Regional Contractual Insights - The signing of long-term contracts varies by region, influenced by supply-demand dynamics and coal price levels. For instance, Shanghai has a tight supply situation, while Jiangsu has seen an increase in new energy installations [7] Renewable Energy Challenges - The renewable energy sector faces challenges such as subsidy issues and consumption pressure, particularly in western regions where wind and solar energy utilization rates are low. The government is implementing measures to improve consumption scenarios [15][14] Conclusion - The electric power industry is undergoing significant changes driven by policy shifts and market dynamics. The focus on quality development, coupled with favorable coal prices, presents both opportunities and challenges for investors in the sector.