Summary of Conference Call on China Power Grid Investment and Nari Tech Industry Overview - **Industry**: China Power Grid Investment - **Current Year-to-Date (YTD) Investment**: +14% year-over-year (yoy) [1] - **Tendering Progress**: +23% yoy YTD [1] - **Power Generation Investment**: Underperformed at +0% yoy YTD [1] Key Points on UHV (Ultra High Voltage) Equipment - **UHV Construction**: Five lines have started construction in 2025, aligning with expectations of six lines [1][21] - **4th Batch Tendering**: Recently released, potentially totaling approximately Rmb15 billion, significantly higher than the first three batches' total of Rmb6.3 billion [1][22] - **Challenges**: Complex negotiations between provinces hinder progress on long-distance transmission projects [3] Nari Tech Insights - **Market Share**: Nari Tech's market share in SVC/STATCOM has dropped from 86% in 2024 to 51% in 2025 YTD [1][16] - **Potential Benefits**: The upcoming UHV equipment tendering may benefit Nari Tech due to its historical 50% market share in converter valves [1] State Grid Transmission Equipment - **Growth**: State Grid transmission equipment tendering has shown +23% yoy growth, exceeding grid investment growth of +14% yoy [2] - **Strong Product Categories**: - Insulated busbar: +62% yoy - Power cables: +52% yoy - Protective relay: +45% yoy - GIS: +29% yoy - Capacitors: +26% yoy [2] Competitive Landscape - **Consolidation**: The market is consolidating towards top players in various product categories, benefiting companies like Pinggao, XD Electric, and Sieyuan [15][20] - **Rising Market Shares**: - TBEA's power transformer market share increased from 16% in 2024 to 24% in 2025 YTD [16] - Sieyuan's disconnector market share rose from 28% in 2024 to 48% in 2025 YTD [16] Additional Insights - **UHV Equipment Tendering**: The 4th batch tendering is the largest to date, indicating a positive trend in UHV investments [22] - **Investment in New Lines**: Two new lines, Mongolia West - Beijing/Tianjin/Hebei and Tibet Southeast - Guangdong/HK/Macao, have received approvals with total investments of Rmb17 billion and Rmb53 billion respectively [22] This summary encapsulates the key insights and data points from the conference call regarding the China power grid investment landscape and the performance of Nari Tech within this context.