Core Viewpoint - The report provides an independent verification of Huadian New Energy Group Co., Ltd.'s pre-investment of self-raised funds into fundraising projects, ensuring compliance with regulatory standards and reflecting the company's commitment to transparency and accountability [2][4][5]. Summary by Sections 1. Report Basis - The report is prepared in accordance with the regulations set by the China Securities Regulatory Commission and the Shanghai Stock Exchange, ensuring that the pre-investment report is accurate and compliant with relevant guidelines [5]. 2. Fundraising Amount and Receipt Status - The company successfully issued 4,968,944,214 shares at a price of RMB 3.18 per share, raising a total of RMB 15,801,242,600.52. After deducting issuance costs, the actual amount received was RMB 15,688,233,691.30 [5][6]. 3. Planned Investment Projects - The fundraising will be allocated to four main project categories: "Wind and Solar Base Projects," "Local Load Center Projects," "New Power System Collaborative Development Projects," and "Green Ecological Civilization Collaborative Development Projects," with an estimated total investment of approximately RMB 18 billion [6][7]. 4. Pre-Investment of Self-Raised Funds - As of July 17, 2025, the company has pre-invested a total of RMB 1,559,187.31 million in various projects using self-raised funds before the actual fundraising was completed [9][10]. 5. Fund Replacement for Pre-Invested Projects - The company plans to use the raised funds to replace the self-raised funds previously invested in projects, with a total amount of RMB 1,559,187.31 million designated for this purpose [10][11]. 6. Other Matters - Additional costs incurred from the issuance, totaling RMB 209,369,531.47 (excluding VAT), will also be covered by the raised funds, ensuring that all financial obligations are met [14].

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the national unified electricity market reform in China, focusing on cross-regional trading to optimize resource allocation and address renewable energy consumption issues in the northwest region [1][3][5]. Core Insights and Arguments - The unified electricity market aims to facilitate the transfer of surplus electricity from regions like the northwest to demand-heavy areas such as East China and Guangdong, although short-term impacts are limited due to channel capacity constraints [1][5]. - Inter-provincial electricity trading is categorized into medium to long-term and spot market segments, with various trading forms including bilateral negotiations, listing trades, and centralized bidding [1][8]. - Recent trends show a decrease in inter-provincial electricity trading prices, primarily due to falling coal prices, with inter-provincial prices generally being slightly lower than intra-provincial prices [7]. - The State Grid and Southern Grid have achieved interconnectivity in medium to long-term trading, but current full capacity limits restrict immediate impacts [9]. - The development of ultra-high voltage (UHV) direct current lines is crucial for transmitting renewable energy from large wind and solar bases, although approval processes are lagging [10][12]. Challenges and Considerations - The "14th Five-Year Plan" for large wind and solar bases faces multiple challenges, including land acquisition, environmental assessments, and price negotiations, which may slow down project timelines [12][14]. - The volatility of wind and solar power generation necessitates backup from thermal power, complicating acceptance by receiving provinces and leading to disputes among provinces regarding renewable energy transmission [15]. - The lack of systematic rules for pricing in UHV transmission relies heavily on negotiations between provinces, which can lead to variability in pricing outcomes [16][17]. Future Projections - By 2030, wind power capacity is expected to double to approximately 1 billion kilowatts, with solar power reaching 2 billion kilowatts, while coal power is projected to increase to 1.35 billion kilowatts [4][22][23]. - The upcoming review cycle for pumped storage capacity and transmission pricing will significantly influence future investment decisions and operational costs [18][20]. - The rapid growth of renewable energy, particularly solar, is expected to alleviate daytime electricity supply shortages, especially during peak hours [34][37]. Additional Important Points - The inter-provincial trading mechanism is still in a pilot phase, and full implementation will take time due to the need for coordination among various local interests and technical limitations [6][9]. - The current electricity supply-demand balance in East China has improved compared to previous years, although summer demand pressures remain [32][33]. - Extreme weather events can disrupt supply-demand balance, but the likelihood of nationwide extreme heat is currently low, allowing for inter-regional support [36]. This summary encapsulates the key points discussed in the conference call, highlighting the ongoing developments and challenges within China's electricity market reform and the implications for future energy supply and demand dynamics.