Core Viewpoint - Xu Ji Electric has appointed Ji Kan as the chairman of its ninth board of directors, with a term lasting until the board's term ends, and he will also act as the general manager during the vacancy [2][4]. Group 1: Leadership and Experience - Ji Kan has a career focused on core technologies in the power system, holding a senior engineer title and a doctoral degree, with previous roles including director of the Urban and Rural Power Grid Automation Research Institute at the State Grid Electric Power Research Institute [2]. - He has extensive management experience in the electric automation sector, having served as deputy general manager and then general manager at Guodian Nari Technology Co., Ltd., and later as general manager at Shandong Electric Group [4]. Group 2: Strategic Importance - Ji Kan's dual roles as chairman of Xu Ji Electric and chairman of China Electric Equipment Group highlight the demand for versatile leaders in the energy industry amid ongoing transformations [4]. - The establishment of China Electric Equipment Group in 2021 aims to enhance the competitiveness of the power transmission and distribution equipment industry, aligning with national investment trends [4]. Group 3: Market Position and Technology - Xu Ji Electric is a leading manufacturer of power equipment in China, with significant advantages in ultra-high voltage direct current transmission, particularly in core products like converters and control protection systems [4]. - The company has achieved a leap from technology introduction to global leadership in ultra-high voltage and flexible direct current technologies, supported by the National Engineering Research Center for High Voltage Direct Current Transmission Equipment [4]. Group 4: Governance Structure - The recent board meeting also adjusted the composition of two specialized committees, with Ji Kan as the chairman of the strategy committee and independent director Dong Xinzhou as the chairman of the nomination committee, ensuring unified strategic decision-making and independent nomination processes [5].

Core Insights - The Kunliulong Direct Current Project, the world's first ±800 kV ultra-high voltage flexible direct current transmission project, marks a significant milestone in China's power industry, having operated safely for five years and demonstrating advanced technology in global power transmission [1][7] Group 1: Project Achievements - Over the past five years, the Kunliulong project has delivered more than 113.5 billion kilowatt-hours of clean electricity, equivalent to a reduction of 87 million tons of CO2 emissions, contributing significantly to low-carbon development [1] - The project has achieved 19 world-firsts, showcasing its scale, reliability, and technological maturity, and providing critical technical support for large-scale renewable energy transmission [1][7] Group 2: Technological Innovations - The flexible direct current converter, described as the "heart" of the project, utilizes over 5,000 IGBT modules that operate with high precision, adjusting every 100 microseconds, thus overcoming a major challenge in the global power industry [2] - The control and protection system, referred to as the "super brain," can manage 17,000 control objects with ultra-fast, high-precision coordination, achieving a control response time of under 150 microseconds, setting a new global record [3] - A hybrid topology structure was developed to address lightning strike issues, allowing for rapid fault clearance and restoration of power supply within 0.5 seconds, significantly enhancing grid reliability [4][5] Group 3: Emergency Response and Stability - The flexible direct current technology features an "emergency rescue" capability, enabling quick transitions to support modes during grid faults, thus providing voltage support and ensuring grid safety [6] - The technology has proven to stabilize the integration of renewable energy sources like wind and solar power, addressing challenges in connecting these variable power sources to the grid [6] Group 4: Recognition and Future Prospects - The Kunliulong project has received multiple accolades, including being named one of the "Top Ten Super Projects" by state-owned enterprises and winning the "National Quality Engineering Gold Award" [7] - The project exemplifies China's leadership in high-end power equipment and is seen as a significant contribution to global sustainable energy development, with ongoing advancements supporting the construction of a new energy system and achieving carbon neutrality goals [7]

Investment Rating - The report maintains an "Overweight" rating for the electric equipment and new energy industry [2] Core Viewpoints - The report suggests focusing on the new energy storage segment, highlighting the need for system-friendly new energy power plants to address the instability of renewable energy output [2][39] - The report emphasizes the importance of enhancing the predictive accuracy of wind and solar power generation to improve grid integration [39] - It recommends paying attention to leading inverter companies that benefit from the development of new energy storage technologies [39] Market Review - As of August 28, 2025, the electric equipment industry has increased by 6.08% over the past two weeks, underperforming the CSI 300 index by 0.88 percentage points, ranking 9th among 31 industries [11] - The electric equipment industry has risen by 11.88% this month, outperforming the CSI 300 index by 2.35 percentage points, ranking 7th [11] - Year-to-date, the electric equipment sector has increased by 15.01%, outperforming the CSI 300 index by 1.56 percentage points, ranking 16th [11] Valuation and Industry Data - As of August 28, 2025, the PE (TTM) for the electric equipment sector is 28.32 times, with sub-sectors showing varied valuations: - Electric motor II: 57.18 times - Other power equipment II: 54.33 times - Photovoltaic equipment: 21.08 times - Wind power equipment: 35.53 times - Battery: 27.20 times - Grid equipment: 26.13 times [22][25] Industry News - The report discusses the Chinese government's initiatives to promote green and low-carbon urban development, emphasizing energy efficiency and the adoption of advanced technologies [35] - It highlights the National Energy Administration's focus on enhancing the adaptability of the power system to renewable energy, including the construction of a new power system and the promotion of energy storage solutions [36] Company Announcements - The report includes recent financial performance announcements from various companies, such as: - GreenMe achieved a revenue of 17.56 billion yuan in the first half of 2025, a year-on-year increase of 1.28% [41] - XianDai Intelligent reported a revenue of 6.61 billion yuan, up 14.92% year-on-year [41] - Euro Continental's revenue reached 2.12 billion yuan, reflecting a growth of 32.59% [41]