Solar: 50% VAT refund has not been extended since 2018. October 20, 2025 12:40 AM GMT China – Clean Energy | Asia Pacific China Scales Back VAT Refunds for Wind and Nuclear Power Key Takeaways China's Ministry of Finance, State Taxation Administration and General Administration of Customs announced VAT refund policy changes: Wind Nuclear We estimate VAT refund removal for onshore wind will save the government ~Rmb25bn in subsidy payments each year. Longyuan got VAT refunds of Rmb901mn in 2024 and Rmb481mn i ...

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the impact of VAT policy adjustments on the wind power and nuclear power industries, effective from November 2025 [1][2]. Core Insights and Arguments - **VAT Policy Changes**: - Onshore wind power will lose its VAT exemption and will be subject to a full 13% VAT starting November 2025. Offshore wind power will enjoy a 50% immediate refund from November 2025 until the end of 2027, after which it will also be fully taxed [1][2]. - **Profit Impact**: - The VAT adjustment is estimated to reduce profit by approximately 0.017 CNY per kilowatt-hour (kWh) for wind power projects. For a 1 GW wind project, this translates to a profit decrease of about 40 million CNY [1][3][4]. - **Company-Specific Performance**: - Different companies will experience varying impacts: - Longyuan Power: Expected profit decline of 11% - Zhongmin Energy: Expected decline of 5% - Huaneng New Energy: Expected decline of 4% - Jieneng Wind Power: Expected decline of 7% - Three Gorges Energy: Expected decline of 3% [1][6]. - **Long-term Investment Outlook**: - Despite a slight decrease in overall investment returns (0.5-1 percentage points) and capital returns (1-2 percentage points), onshore wind resources remain attractive with a central return level around 15%, higher than offshore wind (9%) and solar (7.5%) [7][8]. Additional Important Content - **Impact on Equipment Manufacturers**: - Companies like Goldwind Technology may see a 5-10% impact on overall performance due to the policy changes, but the overall demand for new installations remains strong due to clear planning for renewable energy capacity [3][12]. - **Nuclear Power Specifics**: - The VAT policy for nuclear power is divided into three categories, with existing operational units maintaining the original policy and new projects post-October 2025 not receiving any VAT refunds. The short-term impact on nuclear profits is expected to be limited [10][11]. - **Market Reaction**: - The overall sentiment suggests that while there will be some performance impact on the renewable energy sector, it is not expected to lead to significant downturns. The market's overreaction could present investment opportunities [13]. This summary encapsulates the key points discussed in the conference call regarding the VAT policy changes and their implications for the wind and nuclear power industries.

Core Insights - China Nuclear Power stated on October 20 that the value-added tax (VAT) refunds for its nuclear power projects are generally received within the normal settlement cycle, based on the accrual basis of accounting [2] Company Summary - The company has clarified its accounting practices regarding VAT refunds, indicating a structured approach to financial management [2]

Core Viewpoint - The company aims to enhance its core competitiveness and value creation capabilities through a new strategy focused on "intensification, standardization, and digitalization" [1] Group 1: Strategic Initiatives - The company plans to integrate resources intensively to reduce costs and improve efficiency [1] - It will establish unified management standards to strengthen safety foundations and continuously enhance operational efficiency [1] - The company is committed to building smart power plants through digitalization to empower the traditional energy industry's upgrade [1] Group 2: Policy Support and Collaboration - The company will continue to collaborate with other nuclear power groups to seek policy support from national ministries, particularly regarding electricity pricing [1] - This effort aims to provide strong support for the healthy development of the nuclear power industry [1]

Group 1 - The recent announcement by the Ministry of Finance to abolish tax incentives for the wind power industry, which have been in place for eight years, and the countdown for nuclear power subsidies, indicates significant policy shifts in the energy sector [1][3] - The price of Moutai has dropped below 1700 yuan per bottle ahead of the "Double Eleven" shopping festival, suggesting a potential price war among e-commerce platforms [1][3] - The article highlights the historical context of market behavior, noting that during previous bull markets, retail investors often faced significant losses despite apparent gains in stock prices [4][6] Group 2 - The article discusses the implications of the recent tax policy changes on the wind and nuclear power sectors, emphasizing that these adjustments are not coincidental and may lead to market volatility [3][4] - It mentions that the price drop of premium liquor brands, including Moutai, reflects broader market dynamics and consumer behavior during promotional events [1][3] - The text emphasizes the importance of understanding institutional trading behavior and market sentiment, suggesting that retail investors should not be swayed by surface-level news [15][12]

证券日报网讯川润股份（002272）10月20日在互动平台回答投资者提问时表示，公司相关核电领域产品 主要用于核电领域的发电端设备，包括汽轮机以及给水泵配套润滑系统等产品。 ...

Core Insights - The Ministry of Finance has announced adjustments to the value-added tax (VAT) policies for onshore wind, offshore wind, and nuclear power, transitioning from broad subsidies to targeted support [1][2] - The new VAT policies will take effect from November 1, 2023, with specific provisions for offshore wind and nuclear power projects [1][2] Group 1: Policy Changes - The VAT exemption for onshore wind power, established in 2015, will be abolished starting November 1, 2023 [1] - From November 1, 2023, to December 31, 2027, a 50% VAT refund policy will be implemented for electricity products generated from offshore wind [1] - For nuclear power, projects approved before October 31, 2025, will benefit from a 50% VAT refund for ten years after commercial operation begins [1] Group 2: Industry Implications - The differentiated VAT policies reflect a shift in the government's approach to renewable energy, moving from "policy blood transfusion" to "market blood production" [1] - The new policies indicate a transitional support strategy for the growing offshore wind and nuclear power sectors, with a focus on fostering technological competitiveness [2] - The success of offshore wind power in achieving price parity by 2027 will depend on advancements in floating technology and access to deep-sea development rights [2]

Core Viewpoint - The policy adjustment has a controllable impact on China Nuclear Power (601985.SH), with specific financial implications outlined for both operational and under-construction nuclear power units [1] Summary by Categories Impact on Operational Units - The value-added tax (VAT) refund policy for the 26 operational nuclear power units remains unchanged and consistent with previous policies [1] Impact on Under-Construction Units - For the 19 approved but not yet operational nuclear power units, due to the input tax deduction during the construction period, there will typically be no VAT payable for the first 5-6 years of operation, resulting in no VAT refunds [1] - For a single Hualong One unit, the comparison with the previous policy indicates that there will be no VAT payable in the first 5 years of operation, and no VAT refunds [1] - From the 6th to the 10th year of operation, the estimated annual impact on the company's net profit attributable to shareholders is approximately 20 million yuan, and from the 11th to the 15th year, it is approximately 56 million yuan annually [1] - The total estimated impact on the company's net profit attributable to shareholders over the lifespan of these units is around 400 million yuan [1] - The effects of this policy change on the company's future operating results are expected to gradually manifest after 2030, with no significant impact during the 14th Five-Year Plan period [1] Future Projects - For new nuclear power units approved after October 31, 2025, there will be no VAT refunds [1]

Core Viewpoint - Jiangsu Shentong (002438.SZ) has been actively involved in supplying specialized valves for various new nuclear power plant types in China and is committed to keeping pace with advancements in nuclear energy technology [1] Group 1 - The company has participated in the supply of valves for all types of newly constructed nuclear power plants in China over the years [1] - Jiangsu Shentong is engaged in the research and supply of valves required for nuclear power projects in friendly countries [1] - The company is focused on the development of valves in line with the advancements in the nuclear energy application frontier [1]

Core Viewpoint - Dongfang Zirconium Industry (002167.SZ) has indicated that its oxychloride zirconium products can be utilized in the production of nuclear-grade sponge zircon used in the nuclear power industry [1] Company Summary - Dongfang Zirconium Industry is actively involved in the production of oxychloride zirconium products [1] - The company is positioning its products for applications in the nuclear power sector, specifically for nuclear-grade sponge zircon [1] Industry Summary - The nuclear power industry is a potential market for oxychloride zirconium products, highlighting the relevance of these materials in energy production [1]