Core Insights - Recently, China Nuclear Shandong Nuclear Energy Co., Ltd. has undergone a business change, increasing its registered capital from approximately 5.435 billion to 5.571 billion yuan [1] Company Overview - The company was established in 2021 and is represented by legal representative Hong Yuanping [1] - Its business scope includes power generation technology services, seawater desalination treatment, nuclear power equipment complete sets and engineering technology research and development, as well as engineering and technology research and experimental development [1] Shareholding Structure - The company is jointly held by China National Nuclear Corporation (601985), Wanhua Chemical (600309), and Yantai Energy Investment Development Group Co., Ltd. [1]

Core Viewpoint - The global nuclear power sector is experiencing significant growth, driven by the accelerated deployment of small modular reactor technology, but faces potential uranium supply shortages due to resource depletion in existing mines over the next decade [1][3][9]. Group 1: Nuclear Power Capacity Growth - The International Atomic Energy Agency (IAEA) projects that global nuclear power generation capacity could reach 561 GW in a low scenario and 992 GW in a high scenario by 2050, marking the fifth consecutive year of upward revisions to nuclear expansion forecasts [3]. - As of the end of last year, there were 440 operational nuclear reactors worldwide, with a total installed capacity of 398 GW, an increase of 6 GW from the previous year [5]. - The average capacity factor for nuclear power plants rose to 83%, continuing a trend of high operational performance since 2000, with over 60% of nuclear units maintaining capacity factors above 80% [5][6]. Group 2: Regional Developments - The growth in global nuclear power generation over the past decade has been primarily driven by developments in Asia, where five out of seven new reactors connected to the grid last year were located [7]. - The United States operates the most nuclear reactors globally, with 94 reactors and a total capacity of 97 GW, and aims to increase its nuclear capacity to 400 GW by 2050 [7]. Group 3: Uranium Demand and Supply Challenges - Uranium demand is expected to increase by one-third to 86,000 tons by 2030, and to 150,000 tons by 2040, while existing uranium production is projected to halve during the same period, leading to a supply-demand imbalance [10][11]. - The IAEA and the OECD Nuclear Energy Agency indicate that while proven uranium resources can support nuclear power through 2050 and beyond, significant investment in exploration, mining, and processing technologies is necessary to meet rising demand [10]. - Current uranium spot prices are around $80 per pound, with projections suggesting prices could rise to $100 per pound by 2026 due to supply challenges and stable demand [11].

Core Insights - The Daya Bay Nuclear Power Station, China's first million-kilowatt commercial nuclear power plant, was constructed with significant support from French experts, marking the beginning of Sino-French cooperation in nuclear energy [1][3] - China General Nuclear Power Group (CGN) has successfully developed the "Hualong One" third-generation nuclear technology, showcasing China's ability to innovate and absorb foreign technology [1] - The visit by the French media group highlighted the evolving dynamics of personnel exchanges, with Chinese engineers who trained in France now being highly valued, while French technicians are also coming to China for technical learning [1] - Beyond nuclear energy, there is a growing interest in collaboration between China and France in renewable energy sectors, such as photovoltaics, solar energy, and offshore wind power, as France seeks to catch up in these areas [1] - The long-standing cooperation between China and France in nuclear energy not only reflects their friendship but also represents a shared vision for energy transition and sustainable development [1][3]

扎波罗热核电站培训中心大楼遭无人机袭击。 扎波罗热核电站是欧洲最大核电站之一。2 0 22年2月乌克兰危机全面升级后，俄方控制了扎波罗热核电站。此后，该 核电站多次遭到炮击或无人机攻击，引发国际社会对这座核电站安全的忧虑。 来源：央视新闻客户端 欢迎分享给你的朋友！ 出品 | 中国能源报（c n e ne rgy） 编辑丨赵方婷 End 扎波罗热核电站新闻处9月2 0日发布消息称，19日，乌克兰军方再次对核电站实施袭击，目标是核电站一座培训中心 大楼。 至少3架无人机被动用，其中2架在建筑物屋顶上方被引爆。 未记录到严重破坏和人员伤亡。 消息称，袭击发生时，身处核电站培训中心综合体的国际原子能机构专家及时转移至安全地点。 厂区及周边区域的辐 射水平处于正常范围内，核电机组的安全运行限值和条件未受破坏。 目前，乌克兰方面对此暂无回应。 ...

Core Points - A heavy water leak incident occurred at the Yeonggwang Nuclear Power Plant in South Korea on the 19th, with approximately 265 kilograms of heavy water leaked, but no radiation abnormalities were detected [2][2][2] - The leak was reported while the plant's Unit 2 was undergoing routine maintenance, and the operator, Korea Hydro & Nuclear Power, immediately shut down the relevant nuclear pump upon detection of the leak [2][2][2] - This incident marks the second leak reported at the Yeonggwang Nuclear Power Plant this year, following a previous incident on January 12, where about 29 tons of untested nuclear waste liquid was discharged into the sea [2][2][2]

Group 1 - The core viewpoint of the article highlights the growth in China's nuclear power generation, with a projected output of 384 billion kilowatt-hours in May 2025, representing a year-on-year increase of 6.7% [1] - Cumulative nuclear power generation in China from January to May 2025 is reported at 1,969.2 billion kilowatt-hours, showing a cumulative growth of 11.5% [1] - The article references a report by Zhiyan Consulting, which provides insights into the market dynamics and investment strategies for the nuclear power industry in China from 2025 to 2031 [1] Group 2 - Listed companies in the nuclear power sector include China General Nuclear Power (003816), China National Nuclear Power (601985), and others, indicating a diverse market landscape [1] - The data presented is sourced from the National Bureau of Statistics, emphasizing the reliability of the statistics used in the analysis [1] - Zhiyan Consulting is described as a leading industry consulting firm in China, specializing in comprehensive industry research and providing tailored consulting services [1]

Core Insights - The energy sector is undergoing a significant transformation driven by the increasing power consumption of AI applications like ChatGPT, with nuclear energy emerging as a key player in supporting the AI industry [1] - Nuclear power's stability is its greatest advantage, providing uninterrupted base load power, with a million-kilowatt nuclear power plant generating up to 8 billion kilowatt-hours annually, sufficient to support 1.6 million high-power AI servers [3] - China is accelerating its nuclear energy development, approving the construction of 10 nuclear power units in both 2022 and 2023, and a record 11 units in 2024, with a total of 19 units under construction or planned by mid-2025 [3][4] Company Performance - China Nuclear Power is facing a profit decline despite revenue growth, with net profit expected to drop by 17.38% to 8.777 billion yuan in 2024 and a further 3.66% to 5.666 billion yuan in the first half of 2025 [3][4] - In the core nuclear power business, electricity generation increased by 12.13% year-on-year in the first half of 2025, reaching 93.551 billion kilowatt-hours, but the average on-grid electricity price fell from 0.367 yuan to 0.35 yuan per kilowatt-hour, compressing profit margins [4] - The renewable energy segment is growing rapidly, with a 42.5% increase in generation to 33.2 billion kilowatt-hours in 2024, but net profit decreased by 5 billion yuan due to rising depreciation costs and a high market transaction ratio leading to lower electricity prices [4] Strategic Outlook - Despite short-term challenges, the strategic layout of China Nuclear Power is showing results, with the synergistic development of nuclear and renewable energy ensuring stable base load and enhancing the grid's capacity to absorb variable power [5] - The ongoing commissioning of new units and the scale effects of renewable energy are expected to accumulate energy for the transition, positioning the company advantageously in the energy transformation landscape [5]

Macro Background - The Federal Reserve is expected to cut interest rates twice this year and three more times by 2026, bringing rates down to around 3.25% [1] - U.S. households currently hold $19 trillion in cash, which is 30% higher than pre-pandemic levels, and this cash is being eroded by inflation and taxes, necessitating better investment options [1] - Economic indicators show a "weak recovery but not recession" trend, with soft data slightly improving and hard data remaining stable [1] AI Enablers - "AI enablers" refer to sectors that provide foundational support for the AI industry, including utilities, industrials, nuclear energy, and pipeline MLPs [4] - Over the past two years, these sectors have outperformed the Nasdaq 100, with significant absolute returns and better risk-adjusted returns in some areas [4] - However, the correlation between these "AI enablers" and tech stocks has reached new highs, indicating potential risks if AI spending slows [7][4] Sector Analysis Energy - Natural gas is experiencing a "double benefit" with increased demand from data centers and the lifting of LNG export bans, leading to a reevaluation of natural gas sector valuations [8] - The construction of LNG export facilities is accelerating, creating a second growth curve for the natural gas sector over the next five years [8] - Government policies are becoming more favorable towards the energy sector, with recent approvals for pipeline projects in the Appalachian region [9] Industrials - The industrial sector is driven by AI and manufacturing reshoring, with record order growth expected in the next 2-3 years, particularly in semiconductors, pharmaceuticals, and defense [10] - AI contributes approximately 20-25% to the increase in electricity demand, with the majority coming from electrification policies and the rise of electric vehicles [10] Utilities - The utility sector is projected to grow at 6-8%, driven by increased industrial electricity demand and aging infrastructure [11] - Regulated utility companies are expected to see growth rates rise from 2-4% to 6-8%, with a total annualized return potential of 10% [11] Nuclear Energy - Nuclear energy is favored for its low correlation with tech stocks and long-term growth potential, especially in the context of carbon neutrality goals [13] - The market for small modular reactors (SMRs) is expected to reach $1 trillion by 2050, meeting about 25% of global electricity demand [13] Investment Recommendations - Two core ETFs are highlighted for investors: AIRR (small-cap industrials) and PAVE (infrastructure), both offering high returns with lower volatility [16] - For nuclear energy, URA (uranium ETF) and NLR (nuclear ETF) are recommended due to their low correlation with tech stocks and strong performance metrics [17]

Core Insights - Nuclear energy development presents a paradox, generating significant low-carbon electricity while facing political and public perception challenges [1] - Global nuclear power generation is projected to reach a record high of 2817 terawatt-hours (TWh) in 2024, surpassing the previous peak in 2021 [1] - The growth rate of global nuclear power generation over the past decade is 2.6% annually, recovering from the lows following the Fukushima disaster [1] Group 1: Global Trends - Non-OECD countries are adding nuclear capacity at a faster rate of 3% per year compared to OECD countries at 2.5% [1] - The Asia-Pacific region accounts for over 28% of global nuclear power generation, more than double the proportion from a decade ago [1] - China's nuclear power generation has increased from 213 TWh in 2014 to over 450 TWh in 2024, with an average annual growth rate of nearly 13% [1] Group 2: Regional Developments - The United States remains the largest producer of nuclear power, generating approximately 850 TWh annually, which constitutes 29.2% of global nuclear output [1] - Canada's nuclear generation has decreased from 106 TWh in 2016 to 85 TWh in 2024 [1] - France's nuclear output has declined from 442 TWh in 2016 to 338 TWh in 2024, while Germany has completed its nuclear phase-out [2] Group 3: Emerging Markets - Countries like the Czech Republic, Hungary, and Slovakia are increasing their nuclear power generation, while Brazil and Argentina maintain levels between 15 to 25 TWh [2] - The UAE has increased its nuclear output from zero in 2019 to over 40 TWh in 2024 [2] - Japan has restarted some nuclear reactors, but its output remains significantly below pre-Fukushima levels, projected at 84 TWh in 2024 compared to over 300 TWh in 2010 [2]

Company Overview - China General Nuclear Power Corporation Huizhou Third Nuclear Power Co., Ltd. was established on February 16, 2025, in Huizhou, Guangdong Province, with a registered capital of RMB 1.8 billion [3] - The company operates in the nuclear power generation industry, with business activities including power generation, transmission, and distribution [3][4] Financial Reporting - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the company's financial position as of June 30, 2025 [4] - The reporting currency is Renminbi, and the accounting period is from February 16, 2025, to December 31, 2025 [2][4] Accounting Policies - The company follows the accrual basis of accounting and uses historical cost as the measurement basis for most assets [4][5] - Cash and cash equivalents are defined as cash on hand and deposits that are readily convertible to known amounts of cash [4] Financial Instruments - Financial assets are classified at initial recognition as either measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss [6][7] - The company assesses expected credit losses on financial instruments based on historical data and current economic conditions [14][15] Fixed Assets - Fixed assets are recognized when it is probable that future economic benefits will flow to the company and the cost can be measured reliably [18] - Depreciation is calculated using the straight-line method based on the estimated useful life of the assets [19] Intangible Assets - Intangible assets are recognized when it is probable that future economic benefits will flow to the company and the cost can be measured reliably [28] - Research phase expenditures are expensed as incurred, while development phase expenditures can be capitalized if certain criteria are met [30] Borrowing Costs - Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized [24] - Capitalization of borrowing costs ceases when the asset is ready for use or sale [24] Employee Benefits - The company recognizes short-term employee benefits as liabilities and expenses in the period in which the services are rendered [31] - Contributions to defined benefit plans are recognized based on the present value of the defined benefit obligation [33]