Group 1 - The core component of fusion devices is the fusion power supply, which enhances the fusion "triple product" by optimizing heating temperature and energy confinement time, thus promoting fusion ignition [1][2] - The overall technical and customer barriers for power supply are high, with power supply costs accounting for 30%-50% of the total device cost [1][5] - The investment climate for fusion in China is improving, and the demand for fusion power supply is expected to be fully released as multiple technical routes progress simultaneously [1][5] Group 2 - The power supply plays a crucial role in assisting plasma heating and controlling plasma position, with strict requirements for precision to avoid electromagnetic radiation hazards [2][3] - Different fusion routes, such as linear, Z-pinch, and stellarator, have stringent requirements for power supply, with costs for linear devices reaching about 50% and Z-pinch devices around 30% of total costs [4][5] - Domestic capabilities for core components of power supplies have been established, reducing reliance on imports for critical components like electron tubes [3][5] Group 3 - Recommended stocks include Aikesaibo (688719.SH), with attention to Yingjie Electric (300820.SZ), Guoguang Electric (688776.SH), Xuguang Electronics (600353.SH), Hongxun Technology (603015.SH), and Wangzi New Materials (002735.SZ) [6]

Group 1: Industry Overview - The controlled nuclear fusion, known as "artificial sun," is considered a key to achieving infinite, clean, and safe energy, and has become a strategic direction for many countries since the 20th century [3] - The nuclear fusion industry is experiencing rapid commercialization and industrialization, with significant interest in both primary and secondary markets [4] - The global market for nuclear fusion is expected to reach a scale of trillions, with various regions in China, including Shanghai, Guangdong, Zhejiang, and Sichuan, targeting nuclear fusion as a future industry [7][8] Group 2: Company Developments - Several A-share companies, including Yingjie Electric, Lianchuang Optoelectronics, Hezhong Intelligent, and Jingye Intelligent, are accelerating their layouts in the nuclear fusion field, with recent disclosures of progress [10] - Yingjie Electric provides comprehensive key power supply services for nuclear fusion projects, successfully applied in multiple national-level projects [10] - Lianchuang Optoelectronics is advancing its "3+N" product layout in high-temperature superconducting equipment, aiming for increased product and technology contract amounts [10] - Hezhong Intelligent focuses on the R&D and manufacturing of complex components for fusion reactors, participating in the preliminary research of core components [10] - Shanghai Electric Group has become one of the most comprehensive equipment manufacturers in the nuclear fusion field, achieving 36 breakthroughs in key manufacturing technologies over 20 years [9] Group 3: Recent Milestones - Hanhai Fusion announced the completion of its HHMAX-901 main unit construction, marking a transition from laboratory to application for controlled nuclear fusion technology in China [2] - The BEST project in Hefei has advanced its total assembly work two months ahead of schedule, achieving significant milestones in plasma current and ion temperature [5] - The International Fusion Association (FIA) indicates that most fusion companies expect to achieve the first power supply to the grid between 2031 and 2035 [5]

Summary of the Conference Call for Yingjie Electric Industry and Company Overview - **Company**: Yingjie Electric - **Industry**: Nuclear Fusion Power, Semiconductor, Charging Piles, Energy Storage, Photovoltaics Key Points and Arguments 1. **Nuclear Fusion Market Potential**: Yingjie Electric has been deeply involved in the nuclear fusion power sector for 20 years, collaborating with research institutions like the Southwest Institute of Physics and the Chinese Academy of Sciences. The company expects to achieve over 100 million in revenue in 2024 from this sector, indicating significant market potential [2][6][10]. 2. **Technological Advantages**: The company has a strong technological edge in heating power and magnetic field power control, with current fluctuation rates controlled within 1/10,000. They have achieved long pulse continuous waves lasting 1,066 seconds, showcasing their technical capabilities [2][19][31]. 3. **Competition**: Yingjie Electric faces competition from companies like Anshan Tongchuang and Tianjin Mingwei, but its IGBT technology and flexible production capabilities position it well to capture market opportunities in nuclear fusion projects, which are expected to attract hundreds of billions in investment [2][7][10]. 4. **Impact of Photovoltaic Industry Decline**: The downturn in the photovoltaic industry has significantly affected Yingjie Electric, with domestic orders dropping sharply. The company has proactively expanded into semiconductors, charging piles, and energy storage, with semiconductor revenue expected to exceed 400 million this year, marking a growth of over 30% [2][22][34]. 5. **Response to Bad Debt Risks**: The company has taken measures to address bad debt risks in its photovoltaic business, including a provision of over 50 million for losses and strategies to recover customized power products through legal means [2][27]. 6. **Revenue Goals**: Yingjie Electric aims to achieve 5 billion in revenue within three to four years, leveraging growth in semiconductor, charging pile, energy storage, and overseas markets [4][42]. 7. **Nuclear Fusion Project Clients**: The company is involved in several domestic nuclear fusion projects, including those at the Southwest Institute of Physics and the Chinese Academy of Sciences, indicating a strong client base in the sector [4][5]. 8. **Market Share in Magnetic Field Power**: Yingjie Electric holds a market share of over 50% in the magnetic field power and cyclotron power sectors, reflecting its strong position in the industry [29]. 9. **Future Development Directions**: The company plans to focus on semiconductor, charging pile, energy storage, and photovoltaic sectors, with significant potential for growth in these areas [38][40]. 10. **International Market Challenges**: Yingjie Electric faces challenges in expanding into international markets due to geopolitical uncertainties and tariffs but continues to seek solutions and opportunities for growth [39]. Other Important but Possibly Overlooked Content - **Production Flexibility**: The company has strong flexible production capabilities, allowing it to quickly adapt to new industry demands despite current low photovoltaic orders [9][16]. - **R&D in Nuclear Fusion**: Yingjie Electric does not anticipate the need for new product development for nuclear fusion projects, as existing technologies can meet most requirements [12][31]. - **Sales Performance**: The company has signed contracts worth several million in 2025, indicating a positive trend in securing new orders despite challenges in the photovoltaic sector [21][24]. - **Long-term Outlook**: The company expresses confidence in a gradual recovery of the photovoltaic market and anticipates significant contributions from nuclear fusion projects in the coming years [43].

Group 1: Financial Performance and Risks - The company emphasizes the importance of receivables collection and sales revenue recognition in the photovoltaic industry, facing challenges such as project delays and potential bad debts [1] - Most of the unrecognized sales in the photovoltaic sector have been prepaid, effectively mitigating financial risks [2] - In 2024, the company has made provisions for inventory impairment related to high-risk clients, maintaining overall financial risk within a controllable range [2] Group 2: Controlled Nuclear Fusion Business - The controlled nuclear fusion business is part of the company's research institute segment, with long-term collaborations with various research institutions, including nearly 20 years with 585 Institute [3] - The company provides power support for most domestic nuclear fusion projects, collaborating with entities like the Chinese Academy of Sciences and New Energy Group [3] - The power supply for nuclear fusion devices typically exceeds megawatt levels, including magnetic field power supplies, heating power supplies, and control system power supplies, with cumulative revenue in this sector reaching several million yuan [4] Group 3: Competitive Landscape - The nuclear fusion power supply sector has high technical barriers due to specific operational requirements, resulting in few domestic competitors capable of research and production [5] - Major competitors in project bidding come from cities like Tianjin, Wuhan, Chengdu, and Anshan [5] Group 4: Semiconductor and Charging Pile Business - In 2024, the semiconductor business revenue reached 350 million yuan, with expectations for year-on-year growth based on increasing orders in the second quarter [7] - The company is collaborating with leading domestic firms on new charging pile products, which are currently in the validation stage, potentially leading to significant revenue growth in 2025 [7]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the nuclear fusion industry, specifically the power supply systems used in fusion devices, which constitute approximately 15% of the overall cost structure of fusion reactors [1][2][3]. Core Insights and Arguments - **Power Supply Systems**: The core components of the power supply systems are the magnet power supply and heating power supply. The magnet power supply is crucial for superconducting magnets, characterized by high current and low energy loss, with key players including Xuji Electric and others [1][2]. - **Heating Power Supply**: This system is essential for plasma heating, requiring high voltage, typically in the tens of kilovolts range. Companies involved include Sichuan Chuangxin Electronics and others [1][2]. - **Global Competition**: There is an active global push for nuclear fusion projects, with the U.S. accelerating approvals for new reactor types and China conducting laboratory and facility design tenders. This competitive landscape is expected to drive technological advancements and market opportunities [3][4]. - **Recent Market Performance**: The nuclear fusion sector has seen significant performance improvements due to U.S. administrative orders speeding up reactor approvals and advancements in key technologies. Despite potential short-term corrections, the long-term growth potential remains substantial [4]. Additional Important Content - **Power System Types**: The nuclear fusion industry utilizes two main types of power systems: pulsed power systems and steady-state power systems. The ITER project exemplifies this, with China responsible for the pulsed power component and the U.S. for the steady-state power component [5]. - **Superconducting Magnet Power Supply**: This power supply operates at high current (thousands of kVA) and low voltage (1 kVA), leveraging the near-zero resistance of superconducting magnets at low temperatures [6]. - **Heating Power Principles**: The heating power supply operates based on electromagnetic induction principles, generating eddy currents to heat plasma, but requires auxiliary heating to achieve the necessary temperatures for fusion [7][8]. - **Auxiliary Heating Technologies**: Two main types of auxiliary heating technologies are identified: Pulsed Step Modulation (PSM) and High Voltage Pulsed Supply (HVPS). The ITER project employs four auxiliary heating methods, including Ion Cyclotron Heating and Electron Cyclotron Heating [9][10]. - **Voltage Requirements**: Different heating methods have specific voltage requirements, with Ion Cyclotron Heating needing 18-27 kV, while Neutral Beam Injection requires up to 1,000 kV, indicating higher technical challenges and value in heating systems compared to magnet power supplies [12]. - **Key Companies to Watch**: Notable companies in the nuclear fusion sector include Sichuan Chuangxin Electronics, Yingjie Electronics, and Xuguang Electronics, which have significant roles in power supply and auxiliary equipment manufacturing. Other companies like Yinxing Energy and Xuji Group are also highlighted for their contributions to the industry [16].