Group 1: Company Strategy and Product Development - The company has initiated a strategic direction called "Manufacturing Industry Restart" since 2024, focusing on the R&D of various smart distribution network devices, including modular UPS systems and high-voltage DC power systems [2][3] - The company is developing solid-state transformer (SST) products and has a strong technical background, having exported high-voltage frequency converter technology in 2012 [2][3] - The company has established a new R&D center in Jiangsu to enhance product competitiveness and reduce transportation costs [4] Group 2: Financial Performance - As of Q3 2025, the company reported total revenue of CNY 947 million, a year-on-year decrease of 2.75%, while the net profit attributable to shareholders was CNY 43.12 million, down 41.09% [3][4] - The company achieved a significant increase in non-recurring net profit, which rose by 170.88% to CNY 48.01 million [3] - Operating cash flow improved significantly, exceeding CNY 300 million, a year-on-year increase of 320% [3][4] Group 3: Market and Sales Strategy - The company aims for a 20% increase in orders for its manufacturing sector in 2025, with a detailed sales plan in place [4] - The company is focusing on large clients and has begun establishing an overseas sales team to enhance international sales capabilities [4] - The distribution of smart distribution network equipment orders is approximately 1/3 from the grid and 2/3 from outside the grid, with a gross margin of about 20% and a net margin of around 3% [4] Group 4: Renewable Energy and New Projects - The company has received over CNY 200 million in national subsidies for renewable energy this year, with a faster repayment speed [3][5] - The company is developing a new business model combining decentralized wind power and heating, with over 300 MW of wind power indicators reserved [5][6] - The projected internal rate of return for the decentralized wind power and clean energy heating projects is over 10% [5][6] Group 5: Future Outlook and Goals - The company has set revenue growth targets for 2025: 20% for smart distribution networks, 10% for renewable energy, and 10% for comprehensive smart energy [6] - The company is exploring overseas business opportunities, particularly in Central Asia and ASEAN countries, and has successfully bid for a key energy storage project [6]

Core Viewpoint - The company is actively focusing on emerging technologies such as solid-state transformers to seize market opportunities in the distribution equipment sector [1] Group 1: Company Products and Services - The company's distribution equipment business includes high and low voltage busbars, medium and low voltage complete equipment, transformers, and smart components [1] - The company can provide a variety of products for data centers, including power busbars, smart busbars, complete equipment, and components [1]

Core Insights - The Ministry of Industry and Information Technology, along with two other departments, has issued the "Power Equipment Industry Steady Growth Work Plan (2025-2026)", indicating a strong demand for the power equipment industry due to the global transition to a green and low-carbon energy structure [1] - The main targets for 2025-2026 include maintaining an average revenue growth rate of around 6% for traditional power equipment, ensuring stable growth for new energy equipment, and increasing the export volume of new energy equipment [1][2] - The plan emphasizes the importance of leading regions and enterprises, aiming for an average revenue growth rate of 7% for advanced manufacturing clusters in the power equipment sector and 10% for leading enterprises [1] Industry Growth Targets - The average revenue growth target for traditional power equipment has been adjusted to 6%, lower than the previous plan's target of over 9%, reflecting a slowdown in electricity consumption growth [2] - The export prospects for new energy equipment remain positive despite external uncertainties, with emerging markets outside of Europe and the U.S. presenting significant opportunities [2] Nuclear Power Development - The plan encourages the steady advancement of nuclear power development, with a focus on safely and orderly promoting coastal nuclear power projects [3] - The language used in the current plan suggests a potential acceleration in the pace of nuclear power development compared to previous plans [3] Digital Transformation and Smart Upgrades - The plan calls for the integration of new information technologies with power equipment, promoting green upgrades and digital transformation across the industry [4] - Enhancements in the intelligence of distribution bus systems are crucial for supporting the construction and operation of computing power centers, which are expected to see significant increases in electricity demand due to advancements in artificial intelligence [5][6] Impact of Computing Power Centers - The construction of computing power centers poses challenges for electricity demand, necessitating low-carbon and intelligent support systems [5] - Smart bus technology is identified as a key technology for ensuring high-quality development of computing power centers, improving power distribution reliability, and enhancing energy efficiency [6]