CLP Holdings 2025 Annual Results Presentation 26 February 2026 Disclaimer CLP Holdings Limited (the "Company", together with its subsidiaries, the "Group", or "we", "our" or "us" as the context requires) is providing this document and making an oral presentation thereon (together, this presentation) for information only. We do not represent or warrant (expressly or impliedly) the fairness, accuracy, completeness or correctness of the information contained in this presentation. You should not rely on this pr ...

Core Viewpoint - Inner Mongolia Huadian's acquisition of group assets aims to increase the proportion of wind power, with a commitment from the counterpart to contribute no less than 800 million yuan in net profit from the injected wind power assets between 2025 and 2027 [1] Group 1: Acquisition and Financial Impact - The acquisition is expected to enhance cash flow contributions and improve the company's cyclical resilience amid coal price fluctuations [1] - The stable profitability and growth potential of the company are anticipated to improve simultaneously due to the efficient operation of new wind power assets and deepening business synergies [1] Group 2: Shareholder Returns - Inner Mongolia Huadian has prioritized shareholder returns, completing 25 dividend distributions since its listing, with a total cash dividend payout of 11.6 billion yuan, ranking high among peers in terms of dividend fundraising ratio [1] - The stable dividend expectations highlight the long-term investment value of the company [1] Group 3: Coal Business Stability - The coal business provides stable thermal power costs, with coal being directly supplied to the Weijiawa power plant and surrounding controlled power plants via belt transportation, effectively mitigating fuel cost fluctuations [1] Group 4: Rating - The initial coverage of the company has been given an "overweight" rating [1]

Group 1 - The core point of the article highlights that the Li Ka-shing family has sold its 100% stake in UK Power Networks to French energy giant Engie, resulting in a cash-out of over 110 billion HKD [1][3] - This transaction indicates a significant strategic move by the Li family, suggesting a faster-than-expected withdrawal from certain investments [3] - The sale reflects a broader trend of asset reallocation within the Li family's investment strategy, potentially signaling a shift in focus or market conditions [3]

李嘉诚旗下"长和系"又有大消息！ 2月26日早间，港股长和、长江基建、长实集团、电能实业等纷纷发布公告，对出售UK POWER NETWORKS（以下简称UKPN）一事进行披露。 | | | +1.900 +3.06% 换 0.14% 市值2447亿 市净" 0.44 | | | | | | --- | --- | --- | --- | --- | --- | --- | | 分时 | 五日 | EK | 周Ｋ | FK | FE ST | | | 台加 | | | | 均价: 62.969 | | 同人不 | | 300 | | | | 3.71% 室10 | 64.350 | 1.0万(3) | | | | | | 1979 | 64.300 | 4.5万(18) | | | | | | 38 SE / | 64.250 64.200 | 1.4万(7) 2.6万(10) | | | | | | 326 | 64.150 | 1.4万(7) | | | | | | 375 | 64.100 | 3.0万(11) | | 62.000 | | | | 0.00% 54 | 64.050 | 5.6万(16 ...

Group 1 - A-shares showed mixed performance on February 26, with the ChiNext Index dropping over 1% at one point, while the Sci-Tech Innovation Board rose by 1.29%. Over 2800 stocks in the market declined [1] - The computing hardware sector led the gains, with strong performances from PCB, CPO, liquid cooling servers, and computing chip concepts. Notable stocks included ShenNan Circuit, Han's Laser, and Guanghe Technology, all hitting the daily limit [1] - The computing rental concept expanded its gains, with Runze Technology hitting the daily limit and closing up 17.7%. Other stocks like Zhongbei Communication and Huasheng Tiancheng also reached their daily limits [1] Group 2 - The power sector strengthened due to the AI wave, with Ganneng Co. achieving two consecutive limits and Huayin Power hitting the daily limit. The wind power sector also saw gains, with stocks like Xinqianglian and Dajin Heavy Industry rising significantly [2] - The commercial aerospace sector experienced a surge, with stocks like Chunhui Zhikong hitting a 20% limit and many others seeing substantial increases [2] - Conversely, the film and insurance sectors faced declines, with the film industry continuing to adjust, leading to significant drops in stocks like Bona Film and Hengdian Film [2] Group 3 - In the Hong Kong market, the Hang Seng Index fell over 0.8%, and the Hang Seng Tech Index dropped over 2% [3] - Tech stocks in Hong Kong collectively declined, with companies like Hua Hong Semiconductor and Xpeng Motors dropping over 4%, while Baidu and Kuaishou fell over 3% [4] Group 4 - The Asia-Pacific market saw the Nikkei 225 index rise by 0.29%, closing at 58753.39 points, while the KOSPI index increased by 3.67%, reaching a new historical high of 6307.32 points [6]

Core Insights - The report discusses the fundamental principles of the electricity spot market, its operational status in typical provinces, and the opportunities and challenges it presents for the industry [1][2]. Group 1: Basic Principles of the Electricity Spot Market - The electricity spot market is a crucial phase in the development of China's electricity market, complementing the medium- and long-term markets, with an overall structure that includes medium- and long-term, day-ahead, and real-time markets [1][2]. - The medium- and long-term market accounts for over 70% of the trading volume, while the spot market facilitates precise balancing of electricity supply and demand through competitive bidding [1][2]. - The trading methods in the spot market include bilateral, centralized, and auction trading, utilizing a nodal pricing mechanism to optimize clearing and form time-based prices [1][2]. Group 2: Operational Status in Typical Provinces - Provinces such as Guangdong, Shanxi, and Shandong have adopted centralized market models, primarily using nodal marginal pricing mechanisms, with varying participation from power sources and users [1][2]. - Guangdong has transitioned to formal operation, while regions like Mengxi and Jiangsu are in trial phases, with spot prices influenced by supply-demand dynamics and coal costs [1][2]. - The scale of green electricity trading is expanding in provinces like Gansu, Mengxi, and Zhejiang, with innovative trading models emerging [1][2]. Group 3: Opportunities and Challenges in the Electricity Market - The development of the electricity spot market has led to industry transformation, with increasing shares of renewable energy generation, which also raises system adjustment demands due to its intermittent nature [2]. - The high proportion of renewable energy entering the market has caused marginal electricity prices to decline, with some regions experiencing zero or negative prices [2]. - Market participants are encouraged to leverage policy opportunities, explore inter-provincial green electricity trading, and adopt technologies like AI and machine learning to enhance electricity and price forecasting accuracy [2].

Group 1 - A total of 61 stocks in the market reached the daily limit up on February 26, with 9 stocks achieving consecutive limit ups [1] - 23 stocks attempted to reach the limit but failed, resulting in a sealing rate of 73% (excluding ST and delisted stocks) [1] - Notable stocks include YN Holdings, which achieved 6 consecutive limit ups, and Farsens in the optical fiber sector, which reached 4 consecutive limit ups [1] Group 2 - In the chemical sector, Chengxing Co. and Jinzhen Da both advanced to 3 consecutive limit ups [1]

Market Overview - The market experienced fluctuations with mixed results across major indices, where the Shanghai Composite Index fell by 0.01%, the Shenzhen Component rose by 0.19%, and the ChiNext Index decreased by 0.29% [1] - The trading volume in the Shanghai and Shenzhen markets reached 2.54 trillion yuan, an increase of 75.9 billion yuan compared to the previous trading day [1] Key Sectors Computing Power Sector - The computing power sector surged following Nvidia's impressive earnings report, leading to strong performances in related hardware stocks such as optical fiber, optical modules, PCB, and liquid-cooled servers [3][4] - Notable stocks in this sector included Guanghe Technology, Chuanrun Shares, and Farsens, which all hit the daily limit [3] - The computing power leasing concept also saw significant gains, with stocks like Aofei Data and Huasheng Tiancai reaching their daily limits or increasing by over 10% [3] Electric Power Sector - Electric power stocks showed resilience, with companies like Shenneng Power and Huayin Power hitting their daily limits [5][6] - The National Energy Administration's recent report indicated that by 2025, the new installed capacity for renewable energy generation is expected to reach 452 million kilowatts, a year-on-year increase of 21%, accounting for 83% of the new power generation capacity in the country [6] Commercial Aerospace Sector - The commercial aerospace sector continued its upward trend, with stocks like Aerospace Power hitting their daily limits [7][8] - The upcoming launch of the reusable liquid rocket by Zhongke Aerospace is anticipated to enhance investor interest in this sector, which is expected to be one of the most valuable segments by 2026 [8] Rare Metals Sector - The rare metals sector remained active, with Yunnan Zinc Industry and Zhangyuan Tungsten Industry both hitting their daily limits [9][10] - The U.S. government plans to utilize AI models developed by the Department of Defense to establish reference prices for critical mineral trades, including germanium, gallium, antimony, and tungsten [10] Institutional Perspectives - Multiple foreign institutions express optimism about the A-share market entering a "slow bull" phase, indicating a significant shift in market driving logic [2][11] - Morgan Stanley's chief strategist noted that the A-share market has transitioned into a "slow bull" phase, emphasizing the importance of earnings over liquidity for sustainable market growth [12] - Union Investment anticipates a shift from "valuation recovery" to "profit-driven" phases in the A-share market by 2026, highlighting the potential for improved corporate profitability as a key driver for long-term investment value [12]

Core Viewpoint - The A-share market experienced a mixed performance with the Shanghai Composite Index slightly down by 0.01%, while the Shenzhen Component Index rose by 0.19% and the ChiNext Index fell by 0.29% [1] Market Overview - The total trading volume in the Shanghai and Shenzhen markets reached 2.54 trillion yuan, an increase of 759 billion yuan compared to the previous trading day [1] - Over 2800 stocks in the market declined, indicating a rapid rotation of market hotspots [1] Sector Performance - The computing hardware sector saw significant gains, with strong performances from PCB, CPO, liquid cooling servers, and computing chip concepts [1] - Notable stocks that hit the daily limit include ShenNan Circuit, Dazhu Laser, Guanghe Technology, and Chuanrun Shares [1] - The power sector also performed well, with GanNeng Shares achieving two consecutive limit-ups and HuaYin Power hitting the daily limit [1] - The gas turbine concept stocks collectively surged, with YingLiu Shares, WanZe Shares, DongFang Electric, and ChangBao Shares all reaching the daily limit [1] - The small metals sector was active, with YunNan GeYuan and ZhangYuan Tungsten both achieving two consecutive limit-ups [1] - Environmental stocks saw a late rally, with ZhongKe Environmental and QiDi Environment hitting the daily limit [1] Declining Sectors - The film and television, insurance, and real estate sectors experienced the largest declines [1] - The film and television concept stocks faced continuous declines, with Bona Film Group hitting the daily limit down [1]

Market Overview - The A-share market exhibited a weak oscillation pattern on February 26, with the Shanghai Composite Index closing at 4146.63 points, down 0.01%, while the Shenzhen Component Index rose 0.19% to 14503.79 points. The ChiNext Index fell 0.29% to 3344.98 points, and the STAR Market 50 Index increased by 0.85% to 1485.86 points. The total trading volume in the Shanghai and Shenzhen markets reached 2.54 trillion yuan, an increase of 759 billion yuan from the previous trading day, with over 2800 stocks declining [1]. Key Sectors Computing Power Sector - The computing power sector saw significant activity, driven by Nvidia's impressive earnings report, which boosted global market confidence in AI computing power. Nvidia's CEO highlighted the arrival of an "AI inflection point," further energizing the market. Stocks in the computing power hardware sector, including optical fiber cables, PCBs, and liquid-cooled servers, experienced strong performance, with companies like Huadian Technology and ShenNan Circuit hitting their daily limits [2]. Power Sector - The power and power grid equipment stocks showed a clear upward trend, with companies like Shima Power and Huayin Power reaching their daily limits. The National Energy Administration's recent announcement regarding the addition of 45.2 million kilowatts of renewable energy generation capacity by 2025, a 21% year-on-year increase, provided solid support for the rise in power stocks [3]. Commercial Aerospace Sector - The commercial aerospace sector continued to gain momentum, with stocks like Fushun Special Steel and Aerospace Power hitting their daily limits. The upcoming launch of the reusable liquid-fueled rocket by China Aerospace is expected to enhance the sector's investment appeal, with analysts predicting significant growth potential by 2026 [4]. Minor Metals Sector - The minor metals sector was active, with Yunnan Zhenye and Zhangyuan Tungsten both reaching their daily limits. The U.S. government's plan to establish reference prices for critical minerals, including germanium and tungsten, has stimulated interest in this sector [5]. Underperforming Sectors - The film and cinema sector faced ongoing adjustments, with Bona Film Group experiencing a nearly 9% drop. The real estate sector also saw declines, with companies like Hualian Holdings and Chengdu Investment falling over 5%. Other sectors, including oil services and insurance, also faced downward pressure, indicating a market divergence across different industries [6]. Institutional Insights - JPMorgan's chief strategist indicated that the A-share market has entered a "slow bull" phase, characterized by a focus on earnings rather than just liquidity. The market is expected to see sustainable returns if net profit margins improve [8]. - According to a report from Lianbo Fund, the A-share market is anticipated to shift from "valuation recovery" to "profit-driven" by 2026, with corporate profitability being the key driver for market sustainability [9]. - CITIC Securities highlighted that Zimbabwe's lithium export ban could lead to a short-term supply shortage of lithium carbonate in China, potentially driving up lithium prices and suggesting a focus on unaffected stocks [11].