Summary of XiZi Clean Energy Conference Call Company Overview - **Company**: XiZi Clean Energy - **Industry**: Clean Energy Equipment and Solutions Key Points Financial Performance - Revenue for the first three quarters of 2025 was 4.33 billion RMB, a slight decrease year-on-year due to delays in the Nigeria gas turbine project, impacting revenue by approximately 300 million RMB and gross profit by about 80 million RMB [3][3] - Net profit for the same period was 226 million RMB, with a non-recurring net profit of 180 million RMB, showing significant growth in non-recurring profit compared to the previous year [3][3] - Gross profit margin remained stable at around 19.33%, with a target to exceed 20% for the year [3][3] - Operating cash flow reached 348 million RMB, a year-on-year increase of 129% [4][4] Order Composition and Market Position - New orders totaled 4.054 billion RMB in the first three quarters, with significant contributions from: - Waste heat boilers: 1.2 billion RMB - Clean energy equipment: 1.426 billion RMB - Solutions: 1.94 billion RMB - Spare parts and services: 492 million RMB - Total backlog of orders reached 5.884 billion RMB, expected to exceed 6 billion RMB by year-end [2][5] - The company aims to capture 60-70% of the domestic market share in the gas-fired waste heat boiler sector [5][5] International Market Expansion - XiZi Clean Energy is actively expanding into overseas markets, particularly in Southeast Asia and countries along the Belt and Road Initiative, with overseas orders expected to reach approximately 1.4 billion RMB in 2024, accounting for 23-24% of total orders [2][6] - The company faced challenges during the pandemic but has seen a resurgence in overseas project opportunities since 2023 [6][6] North American Market Dynamics - The development of the North American computing power market has significantly increased equipment demand, with planned gas-fired power project capacity in the U.S. rising from 1.62 GW this year to 3 GW next year [8][8] - XiZi Clean Energy plans to collaborate with major companies like NE and GE, focusing on subcontracting due to increased tariffs from the U.S.-China trade war [9][9][10] - The company can cover 70-80% of the total cost of gas turbine waste heat boiler orders, with core pressure components making up 65-66% of total costs [11][11] Nuclear Power Business Development - Nuclear power has become a key growth area, with plans to achieve 300-500 million RMB in orders in 2026 through partnerships with major players like China National Nuclear Corporation and State Power Investment Corporation [15][16] - The company aims to enhance its supply chain capabilities and expand its market share in the nuclear sector, which has a market size of approximately 5 billion RMB [20][20] Energy Storage Initiatives - XiZi Clean Energy is focusing on molten salt energy storage applications, participating in multiple projects and planning to commercialize new storage technologies in 2026 [22][24] - The company has been involved in various molten salt storage projects since 2018, generating approximately 500 million RMB in new orders annually [22][22] Market Outlook and Strategy - The domestic market for new gas installations is expected to decline, with a cautious outlook for 2026, while overseas markets are projected to grow by over 20% [14][14] - The company is developing new KPIs for the upcoming year to clarify order guidance for 2026 [14][14] Competitive Landscape - In the domestic waste heat boiler market, key competitors include Huaguang Huaneng, Hailu Heavy Industry, and Huagi Energy [7][7] - Globally, Chinese manufacturers are gaining market share, with Chinese waste heat boiler products accounting for about 20% of the global market [7][7] Conclusion - XiZi Clean Energy is strategically positioned to leverage growth opportunities in both domestic and international markets, particularly in the clean energy and nuclear sectors, while navigating challenges posed by trade tariffs and market competition. The focus on innovative energy storage solutions and partnerships will be crucial for future growth.

Group 1: Company Overview - The main business of Suzhou Hailu Heavy Industry Co., Ltd. remains unchanged, focusing on the manufacturing and sales of industrial waste heat boilers, large and special material pressure vessels, and nuclear safety equipment [1] - The company also provides environmental comprehensive governance services for solid waste and wastewater treatment and recycling, as well as photovoltaic power station operations [1] Group 2: Nuclear Power Business - The company supplies nuclear power equipment for various reactor types, including Generation II+, Generation III (Hualong One, Guohe One, AP1000, VVER, EPR), Generation IV (high-temperature gas-cooled reactors, sodium-cooled fast reactors, thorium molten salt reactors), and thermonuclear fusion reactors [1] - The nuclear safety equipment includes a wide range of components such as injection tanks, internal component lifting baskets, spent fuel coolers, and emergency water supply tanks, contributing to domestic nuclear power construction [2] - The ongoing investment in new Generation IV nuclear power equipment projects is progressing normally, which will effectively meet the manufacturing capacity demand for nuclear power upon production [2] Group 3: Future Strategic Planning - The company plans to deepen its core business while increasing efforts in technological innovation and management, enhancing management and cost control, and optimizing resource allocation to improve profitability and market competitiveness [2]

Group 1 - In 2023, Sichuan has conducted three batches of customized production key enterprise selection, with 106 enterprises selected, bringing the total to 443 key enterprises in the province [1][2] - The selection of customized production key enterprises aims to efficiently connect manufacturing with consumer demand, creating a well-known brand "Sichuan Custom" and enhancing the quality and growth of advantageous industries [1][2] - The selected enterprises utilize customized production models to precisely link with differentiated customer needs, thereby improving market competitiveness [1] Group 2 - In July 2023, Sichuan issued an implementation opinion to enhance the production supply capacity of quality products, promoting large-scale, multi-variety, and flexible manufacturing models to quickly respond to market demands [2] - The focus is on developing customized products in sectors such as clothing, furniture, crafts, bags, cosmetics, and 3D printing [2] - The initiative is expected to strengthen the supply capacity of quality products and support the growth of advantageous industries in the province [2]

Core Viewpoint - ST Huaxi possesses advanced supercritical boiler technology and is one of the few companies in China capable of independent research, design, and mass production of supercritical complete boiler systems [1] Group 1 - The company has the capability to independently research and design supercritical complete boilers [1] - ST Huaxi can mass-produce supercritical complete boiler systems, highlighting its manufacturing capabilities [1] - The company's supercritical complete boiler products have been successfully operational in multiple projects [1] Group 2 - The primary application of the company's technology is in the field of efficient and clean power generation [1]

Core Viewpoint - Xizi Clean Energy experienced a decline of 5.01% on November 20, with a stock price of 15.36 CNY per share and a total market capitalization of 12.84 billion CNY [1] Company Overview - Xizi Clean Energy Equipment Manufacturing Co., Ltd. is located in Hangzhou, Zhejiang Province, and was established on January 10, 2011. The company specializes in the consulting, research and development, production, sales, installation, and engineering contracting of products such as waste heat boilers, power station boilers, and industrial boilers [1] - The revenue composition of the company includes: Solutions (50.21%), Waste Heat Boilers (18.98%), Clean and Environmental Energy Equipment (17.00%), Spare Parts and Services (10.14%), and Others (3.67%) [1] Fund Holdings - According to data, Guolian Fund has one fund heavily invested in Xizi Clean Energy. Guolian Xin Value Mixed A (004836) held 6,018 shares in the third quarter, accounting for 0.46% of the fund's net value, making it the fourth-largest holding [2] - The fund was established on March 9, 2018, with a latest scale of 10.32 million CNY. Year-to-date return is 4.95%, ranking 6707 out of 8136 in its category; the one-year return is 8.09%, ranking 6021 out of 8055; and since inception, the return is 1.67% [2] - The fund manager, Pan Wei, has been in the position for 7 years and 72 days, with total assets under management of 15.103 billion CNY. The best fund return during his tenure is 22.74%, while the worst is -3.81% [2]

Core Viewpoint - The company, ST Huaxi, possesses supercritical boiler technology and has the capability for independent research, design, and mass production of supercritical complete boiler systems, making it one of the few enterprises in China with such advanced technology [1]. Group 1 - The company has supercritical boiler technology reserves and can produce supercritical complete boiler systems [1]. - ST Huaxi is one of the few companies in China with the research and manufacturing capabilities for supercritical high-tech boilers [1]. - The company's supercritical complete boiler products have been successfully operated in multiple projects, primarily in the field of efficient and clean power generation [1].

Core Insights - The stock of Lijun Thermal Energy experienced a slight decline of 0.23% on November 18, with a trading volume of 92.82 million yuan [1] - The company reported a financing net buy of -3.11 million yuan on the same day, indicating a higher level of financing repayment compared to new purchases [1] - As of November 18, the total balance of margin trading for Lijun Thermal Energy reached 124 million yuan, accounting for 9.12% of its circulating market value, which is above the 90th percentile of the past year [1] Financial Performance - For the period from January to September 2025, Lijun Thermal Energy achieved an operating income of 522 million yuan, representing a year-on-year decrease of 12.29% [2] - The net profit attributable to the parent company was 56.30 million yuan, reflecting a significant year-on-year decline of 60.49% [2] Shareholder Information - As of November 10, the number of shareholders for Lijun Thermal Energy was 5,765, a decrease of 0.69% from the previous period [2] - The average number of circulating shares per shareholder increased by 0.69% to 3,946 shares [2] Dividend Distribution - Since its A-share listing, Lijun Thermal Energy has distributed a total of 227 million yuan in dividends [3] Institutional Holdings - As of September 30, 2025, two funds, Taikang Quality Life Mixed A and Taikang Strategy Preferred Mixed, have exited the list of the top ten circulating shareholders [3]

Group 1 - The core viewpoint of the news is that Xizi Clean Energy has seen a 5% increase in stock price, reaching 17.22 CNY per share, with a trading volume of 192 million CNY and a turnover rate of 1.37%, resulting in a total market capitalization of 14.395 billion CNY [1] - Xizi Clean Energy Equipment Manufacturing Co., Ltd. is located in Hangzhou, Zhejiang Province, and was established on January 10, 2011. The company specializes in the consulting, research and development, production, sales, installation, and engineering contracting of products such as waste heat boilers, power station boilers, and industrial boilers [1] - The main business revenue composition of Xizi Clean Energy includes: solutions (50.21%), waste heat boilers (18.98%), clean and environmentally friendly energy equipment (17.00%), spare parts and services (10.14%), and others (3.67%) [1] Group 2 - From the perspective of major holdings in funds, Yongying Fund has one fund heavily invested in Xizi Clean Energy. The Yongying Manufacturing Upgrade Smart Selection Mixed Fund A (024202) held 757,800 shares in the third quarter, accounting for 4.84% of the fund's net value, making it the eighth largest holding [2] - The Yongying Manufacturing Upgrade Smart Selection Mixed Fund A (024202) was established on June 11, 2025, with a latest scale of 59.3587 million CNY and has achieved a return of 15.02% since inception [2] - The fund manager of Yongying Manufacturing Upgrade Smart Selection Mixed Fund A is Hu Ze, who has been in the position for 2 years and 163 days, managing total assets of 3.428 billion CNY, with the best fund return during his tenure being 126.96% and the worst being -2.15% [2]

Core Viewpoint - Xizi Clean Energy (002534.SZ) is a leader in the domestic gas turbine waste heat boiler industry, holding over 50% market share, and is expanding its presence in overseas markets due to increasing demand for natural gas power generation [1] Group 1: Domestic Market - The company signed a technology transfer agreement with the US N/E company in 2002, which is the largest technology transfer entity globally [1] - Gas turbine waste heat boilers are key equipment for addressing the slow start-up of traditional thermal power and the instability of renewable energy, thanks to their low carbon efficiency and rapid peak response capabilities [1] - The company has supplied over 450 sets of gas turbine waste heat boilers, covering a full range of products compatible with major global gas turbine brands such as GE, Siemens, and Mitsubishi [1] Group 2: International Market - The company has gained recognition from overseas clients due to its brand effect, equipment quality, and delivery services, with notable projects including the first set of 9H gas turbine waste heat boilers in Pakistan [1] - In the past two years, the company has secured multiple overseas project orders, capitalizing on the booming demand for electricity in international markets [1] - The company aims to seize opportunities for gas turbine waste heat boiler orders driven by the explosive demand for natural gas units [1]

Core Insights - The company reported a significant decline in performance for Q3 2025, with revenue of 4.33 billion yuan, a year-on-year decrease of 11.2%, and a net profit attributable to shareholders of 180 million yuan, down 58.3% year-on-year. The decline is attributed to delays in the delivery of overseas boiler equipment to Q4 [1] - Despite the Q3 downturn, the company anticipates an overall improvement in performance for the full year, with a projected net profit of 400-500 million yuan for 2025-2026, reflecting a year-on-year change of -9%/+25% [1] Financial Performance - Revenue for Q3 was 1.54 billion yuan, a year-on-year decline of 18.6%, with a net profit of 30 million yuan, down 64.6% year-on-year [1] - Gross margin for the first three quarters was 19.3%, a decrease of 0.26 percentage points year-on-year, while the net profit margin was 5.2%, down 4.2 percentage points year-on-year. For Q3 alone, the gross margin was 17.1%, down 1.1 percentage points, and the net profit margin was 3%, down 1.9 percentage points [1] Orders and Cash Flow - New orders for the first three quarters of 2025 totaled 4.05 billion yuan, a year-on-year decrease of 11.6%. The backlog of orders stood at 5.88 billion yuan, down 8.3% year-on-year, but the company expects a good growth trend in orders for the full year [1] - Operating cash flow for the first three quarters was 350 million yuan, representing a year-on-year increase of 130%, indicating ongoing improvement in operational quality [2] Strategic Developments - The chairman has increased his stake in the company by nearly 50 million yuan at a price of 17.09 yuan per share, reflecting confidence in the company's development [3] - In the nuclear power sector, the company has provided significant equipment to major partners and is set to launch a new nuclear power workshop by the end of September 2025. A joint venture focused on nuclear energy technology has also been established [3] - In the solar thermal sector, the company has developed advanced systems for solar thermal and storage, with projections indicating substantial growth in China's solar thermal market by 2030, 2040, and 2050 [3] Market Position and International Expansion - The company is recognized as a leading domestic manufacturer of waste heat boilers, with a strong market share and potential benefits from domestic infrastructure investments [4] - The company is actively pursuing international opportunities, collaborating with renowned global firms to expand into markets along the Belt and Road Initiative [4] Profit Forecast and Valuation - The projected net profit for 2025-2027 is estimated at 430 million, 510 million, and 560 million yuan, with year-on-year changes of -3%, +21%, and +8%, respectively. The corresponding price-to-earnings ratios are expected to be 32, 27, and 25 times [5]