Investment Rating - The report maintains a "Positive" investment rating for the utility sector [9] Core Insights - In April 2026, the overall trend in Jiangsu's centralized bidding showed a "reduced volume but increased price" pattern, with electricity prices experiencing marginal recovery despite the traditional coal off-season [2][11] - The average trading price of green certificates in February 2026 was 5.16 yuan per certificate, reflecting a 1.0% month-on-month increase, indicating strong demand resilience [7][11] - The report highlights a shift in China's new energy development from "scale-focused" to "structural adjustment and efficiency-focused" following the implementation of policy 136 [2][11] Summary by Sections Market Performance - The utility sector has shown a 20.22% increase over the past year, with a 14.00% rise since the beginning of 2026 [39][41] Electricity Supply and Demand - In the first two months of 2026, China's new installed capacity reached 65.91 million kilowatts, a year-on-year increase of 14.23%, with significant growth in thermal power [11][12] - The report notes a clear differentiation in new installations between wind and solar power, with solar installations decreasing by 17.98% [2][11] Green Certificate Trading - In February 2026, the National Energy Administration issued 198 million green certificates, with a total trading volume of 75.48 million certificates, marking a 166% year-on-year increase [7][11] - The trading of green certificates accounted for 57.96% of the issued tradable scale, an increase of 8.85 percentage points compared to the entire year of 2025 [7][11] Investment Recommendations - The report recommends focusing on quality thermal power operators such as Huaneng International, Guodian Power, and Huadian International, as well as hydropower companies like Yangtze Power and State Power Investment Corporation [7][11] - For new energy, it suggests companies like Longyuan Power and China Nuclear Power, indicating a potential recovery in the sector [7][11]

Core Viewpoint - China Shenhua Energy Co., Ltd. reported a decline in both revenue and net profit for the year 2025, attributing the downturn to factors affecting coal sales and electricity generation [1] Group 1: Financial Performance - In 2025, China Shenhua achieved an operating revenue of 294.916 billion yuan, a year-on-year decrease of 13.2% [1] - The net profit for the year was 52.849 billion yuan, reflecting a year-on-year decline of 5.3% [1] - The board proposed a final cash dividend of 1.03 yuan per share (including tax), with an expected total cash dividend payout of 22.34 billion yuan (including tax) [1] Group 2: Factors Influencing Revenue Decline - The decline in revenue was primarily due to two factors: - A decrease in coal sales volume and average selling price, which fell by 6.4% and 12.1% respectively, leading to a drop in coal sales revenue [1] - A reduction in electricity sales volume and average selling price, which decreased by 3.9% and 4.0% respectively, resulting in lower electricity sales revenue [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之 內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示 概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引 致之任何損失承擔任何責任。 ( 在中華人民共和國註冊成立的股份有限公司 ) (股份代碼:01088) 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而 做出。 茲載列中國神華能源股份有限公司於 2026 年 3 月 31 日在上海證券交 易所網站(www.sse.com.cn)刊登的「2025 年度報告」等文件，僅供參 閱。 承董事會命 中國神華能源股份有限公司 總會計師、董事會秘書 宋靜剛 北京，2026 年 3 月 30 日 於本公告日期，董事會成員包括執行董事張長岩先生，非執行董事康 鳳偉先生及李新華先生，獨立非執行董事袁國強博士、陳漢文博士及 王虹先生，職工董事焦蕾女士。 1 中国神华能源股份有限公司 2025 年度报告 公司代码：601088 公司简称：中国神华 中国神华能源股份有限公司 2025 年度报告 重要提示 1 一、本公司董事会及全体董事、高级管理人员保证年度报告内容的真实、准 ...

Investment Rating - Maintain "Buy" rating for the utility sector [1] Core Insights - Anhui Province is promoting the development of green electricity direct connection, with a focus on new loads and existing loads that meet specific criteria [4] - Guangdong Province has announced the first batch of zero-carbon park construction, with 15 parks included, emphasizing green electricity supply models [4] - The average electricity purchase price in March 2026 decreased by 11% year-on-year [36] - The price of thermal coal at Qinhuangdao port increased by 14.4% year-on-year as of March 27, 2026 [42] - The inflow and outflow of the Three Gorges Reservoir decreased by 3.62% and 23.9% year-on-year, respectively [50] Industry Data Tracking - **Electricity Consumption**: In 2025, total electricity consumption reached 10.37 trillion kWh, a year-on-year increase of 5.0% [14] - **Power Generation**: Total power generation in 2025 was 9.72 trillion kWh, with a year-on-year increase of 2.2% [21] - **Electricity Prices**: The average electricity purchase price in March 2026 was 352 RMB/MWh, down 11% year-on-year [36] - **Coal Prices**: As of March 27, 2026, the price of thermal coal was 761 RMB/ton, up 14.4% year-on-year [42] - **Water Conditions**: The water level of the Three Gorges Reservoir was 165.26 meters, with inflow and outflow rates showing significant decreases [50] Investment Recommendations - **Green Electricity**: Focus on companies like Longyuan Power, Zhongmin Energy, and Three Gorges Energy, with a strong recommendation for Longjing Environmental Protection [4] - **Thermal Power**: Explore reliability and flexibility value in companies like Huaneng International and Huadian International [4] - **Hydropower**: Long-term benefits from low-cost operations, with a focus on Changjiang Power [4] - **Nuclear Power**: Growth potential with increased profitability and dividends, recommending China Nuclear Power and China General Nuclear Power [4] - **Solar and Charging Assets**: Revaluation opportunities in solar and charging pile assets, with recommendations for companies like Southern Power Grid Energy and Longxin Technology [4]

- The report does not contain any quantitative models or factors related to ESG analysis, nor does it provide any specific construction processes, formulas, or backtesting results for such models or factors[1][2][3][10][19][20] - The content primarily focuses on ESG market trends, policy updates, and industry developments, such as the deployment of green finance mechanisms, carbon market upgrades, and corporate governance practices[10][11][19] - Key highlights include the performance of ESG-related indices, carbon pricing trends, and sectoral capital flows, but these are descriptive and lack quantitative modeling or factor-based analysis[19][20][28]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $486 million for the full year, with approximately $445 million of that being non-cash losses [12][13] - Total assets as of December 31, 2025, were approximately $1.4 billion, with property, plant, and equipment totaling $935 million, primarily in construction in progress [12] - Cash and cash equivalents were $409 million at year-end, while total stockholders' equity stood at $1.1 billion [12] Business Line Data and Key Metrics Changes - The company is in full-scale construction with nearly $570 million of investor capital deployed into physical infrastructure at Project Matador [11][14] - The majority of capital was allocated to natural gas power generation, including turbine procurement and balance of plant equipment [15] Market Data and Key Metrics Changes - The company has received a 6 GW air permit and filed for an additional 5 GW, indicating strong market interest and potential for future growth [9][88] - Engagement with prospective tenants has increased significantly since the air permit was finalized, with many companies now eager to secure power [88] Company Strategy and Development Direction - The company aims to create a private community powered by a private grid, focusing on building trust with investment-grade counterparties [7][10] - The strategy includes securing multiple tenants to maximize the efficiency of the power generation sets and ensuring diverse demand [9][10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of executing definitive tenant agreements and securing project financing before committing significant capital to the next phase of construction [17][19] - The company is actively negotiating with multiple potential tenants, with expectations for tenant revenues to commence in 2027 [18] Other Important Information - The company intends to elect REIT status for U.S. federal income tax purposes, aligning with its long-duration, infrastructure-oriented assets [20] - The lock-up agreement for pre-IPO investors expired on the day of the call, which may impact stock liquidity [20] Q&A Session Summary Question: What are the key discussion points with prospective tenants? - The primary concern for tenants is securing all available power for the long term, with a focus on investment-grade wraps [24][27] Question: What is the timeline for energization milestones? - The company has received SGT-800 frames and is preparing for deployment, with foundations ready for installation [24][26] Question: Are there sticking points in negotiations with tenants? - Tenants are focused on locking in power at current prices, while the company aims for multiple tenants to ensure efficiency [35][36] Question: What is the expected cash burn for FY 2026? - The company is managing cash burn carefully and expects to have sufficient liquidity until tenant agreements are signed [95][96] Question: What is the status of the equipment financing facility? - The financing is currently non-recourse and will not come onto the balance sheet until project financing is secured [94][96] Question: How has the tenant list evolved since the air permit was finalized? - The engagement with potential tenants has increased significantly, with many now eager to secure power [88]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a net loss of $486 million, with approximately $445 million being non-cash losses [12][13] - Total assets were approximately $1.4 billion, with property, plant, and equipment totaling $935 million, primarily in construction in progress [12] - Cash and cash equivalents stood at $409 million at year-end [12] Business Line Data and Key Metrics Changes - The company is in full-scale construction of Project Matador, with nearly $570 million of investor capital deployed into physical infrastructure [11][14] - The focus is on natural gas power generation, with significant investments in turbine procurement and related infrastructure [15] Market Data and Key Metrics Changes - The company has received a 6-gigawatt air permit and filed for an additional 5 gigawatts, indicating strong market interest and potential for future growth [9][88] - Engagement with prospective tenants has increased significantly since the air permit was finalized, with potential tenants now more serious about securing power [88] Company Strategy and Development Direction - The company aims to establish a private community powered by a private grid, focusing on building trust with investment-grade counterparties [6][8] - The strategy includes securing multiple tenants to maximize the efficiency of power generation and ensure diverse demand [9][10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of executing definitive tenant agreements and securing project financing as critical milestones for future capital deployment [17][18] - The company is actively negotiating with multiple potential tenants, with expectations for tenant revenues to commence in 2027 [18] Other Important Information - The company intends to elect REIT status for U.S. federal income tax purposes, aligning with its long-duration, infrastructure-oriented assets [20] - The lock-up agreement for pre-IPO investors expired, allowing for potential changes in shareholding dynamics [20] Q&A Session Summary Question: What are the key discussion points with prospective tenants? - The primary concern for tenants is securing all available power for the long term, with a focus on locking in prices [24][27] Question: What is the timeline for energization milestones? - The company is ready to deploy SGT-800 units, with foundations prepared and significant cost savings achieved during importation [25][26] Question: Are there different sticking points for Fermi as a landlord versus potential tenants? - Tenants are focused on securing power at current prices, while the company is negotiating to ensure multiple tenants for efficiency [35][36] Question: What is the expected cash burn for FY 2026? - The company is managing cash burn carefully, with sufficient liquidity to meet obligations until tenant agreements are signed [95][96] Question: Can you provide more color on potential asset relinquishment? - The company does not intend to relinquish assets but mentioned it as a potential lever if necessary [102][104]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $486 million for the full year, with approximately $445 million of that being non-cash losses [10][11] - Total assets as of December 31, 2025, were approximately $1.4 billion, with property, plant, and equipment totaling $935 million, primarily in construction in progress [10] - Cash and cash equivalents were $409 million at year-end, with total stockholders' equity at $1.1 billion [10] Business Line Data and Key Metrics Changes - The company is in full-scale construction and has deployed nearly $570 million of investor capital into physical infrastructure at Project Matador [9][12] - The focus is on natural gas power generation, with significant investments in turbine procurement and related infrastructure [12] Market Data and Key Metrics Changes - The company has received a 6-gigawatt air permit and has filed for an additional 5 gigawatts, indicating strong market interest and potential for future growth [7][8] - Engagement with potential tenants has increased significantly since the air permit was finalized, with prospective tenants now more serious about securing power [86] Company Strategy and Development Direction - The company aims to create a private community powered by a private grid, focusing on earning the trust of investment-grade counterparties [5][6] - The strategy includes securing multiple tenants to maximize the efficiency of the power generation sets and ensuring diversity of demand [7][8] - The company plans to elect REIT status for U.S. federal income tax purposes, aligning with its long-duration, infrastructure-oriented assets [18] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of executing tenant agreements and securing project financing as critical milestones for future capital deployment [14][15] - The company is actively negotiating with multiple potential tenants, with expectations for tenant revenues to commence in 2027 [16] - Management acknowledged the risks associated with capital availability and the potential need to delay investments if financing does not materialize as planned [17] Other Important Information - The company has a strong liquidity position, with cash provided by financing activities totaling approximately $1 billion, including proceeds from the IPO [13] - The company is focused on capital discipline, with operating cash use for the year reported at $34 million [12] Q&A Session Summary Question: Key discussion points with prospective tenants - The main issues are tenants wanting all available power for extended periods, necessitating multiple tenants for operational efficiency [22] Question: Near-term energization milestones - The company has received SGT-800 frames and is preparing for their deployment, with foundations ready for installation [24] Question: Sticking points in tenant negotiations - Tenants are focused on locking in power at current prices due to anticipated increases, which is a primary negotiation point [33] Question: Cash burn expectations for FY 2026 - The company is managing cash burn carefully, with a focus on aligning development with tenant agreements and project financing [93] Question: Asset relinquishment to preserve cash flow - There are no current plans to relinquish assets, as demand remains strong, but it is a potential lever if necessary [100] Question: Evolution of the tenant list since the air permit - The tenant list has not changed, but engagement has increased significantly, with prospective tenants becoming more serious buyers [86]

Investment Rating - Maintain "Buy" rating for the utility sector [1] Core Insights - Anhui Province is promoting the development of green electricity direct connection, with a focus on new loads and existing loads that meet specific criteria [4] - Guangdong Province has announced the first batch of zero-carbon park construction, with 15 parks included, emphasizing green electricity supply models [4] - The average electricity purchase price in March 2026 decreased by 11% year-on-year [36] - The price of thermal coal at Qinhuangdao port increased by 14.4% year-on-year as of March 27, 2026 [42] - The inflow and outflow of the Three Gorges Reservoir decreased by 3.62% and 23.9% year-on-year, respectively [50] Summary by Sections 1. Industry Trends - The utility index increased by 2.50% from March 23 to March 27, 2026, with notable gains in nuclear power and thermal power sectors [9] 2. Electricity Sector Tracking - Total electricity consumption in 2025 reached 10.37 trillion kWh, a year-on-year increase of 5.0% [14] - Total power generation in 2025 was 9.72 trillion kWh, with a year-on-year growth of 2.2% [21] - The average electricity purchase price in March 2026 was 352 RMB/MWh, down 11% year-on-year [36] 3. Thermal Power - The cumulative installed capacity of thermal power reached 1.54 billion kW by the end of 2025, with a year-on-year increase of 6.3% [43] - The average utilization hours for thermal power in 2025 were 4147 hours, a decrease of 232 hours year-on-year [43] 4. Hydropower - The cumulative installed capacity of hydropower was 450 million kW by the end of 2025, with a year-on-year increase of 2.9% [53] - The inflow and outflow of the Three Gorges Reservoir showed significant decreases, indicating potential impacts on hydropower generation [50] 5. Investment Recommendations - Focus on green electricity, thermal power reliability, and hydropower market benefits [4]

Market Overview - The A-share market showed a mixed performance with the Shanghai Composite Index rebounding slightly, while the Shenzhen Component Index and the ChiNext Index experienced minor declines, indicating a volatile market with noticeable sector rotation [5] - A total of 2,865 stocks rose, reflecting a market environment where more stocks gained than lost, suggesting an improvement in market profitability compared to previous periods [5] - The trading volume across both exchanges exceeded 1 trillion yuan, marking a 3.38% increase, indicating a moderate recovery in market activity and a stable trading environment [5] Capital Flow - Main funds exhibited a slight net outflow, indicating a cautious adjustment and structural optimization by institutional investors, who reduced holdings in high-performing sectors while focusing on low-position and defensive strategies [6] - Retail investors showed a more active participation with a net inflow of funds, indicating a willingness to engage in the market's recovery by targeting both hot and low-position stocks [6] Investor Sentiment - Retail investor sentiment was reported at 75.85%, reflecting a generally positive outlook among individual investors [7] - The sentiment towards market movements indicated that 64.24% of respondents expected the market to rise in the next trading day, showcasing optimism among investors [14]