Core Viewpoint - The Shandong Province has issued a notification to ensure a smooth transition for the electricity market, aiming for full market participation of renewable energy sources by the end of 2025, with a focus on market-driven pricing for electricity generated from wind and solar sources [1] Group 1: Mechanism Design and Market Transition - The notification outlines a mechanism for dividing existing and new projects, where existing projects will continue under previous supportive policies while new projects will follow market pricing rules [2] - A phased implementation plan for new projects will be introduced, with annual bidding organized by provincial authorities to determine the mechanism electricity based on competitive pricing [2] - The notification allows for flexible participation in the market through virtual power plants or as price takers represented by the grid [2] Group 2: Business Development and Optimization - The company is expanding its operations into energy digitalization, with a focus on marketing, data collection, and AI applications, achieving breakthroughs in relevant fields [3] - The company has connected over 6,500 utility service providers, serving more than 500 million users with online billing and payment services, achieving nearly 20 million daily active users [3] - The company’s platform for electric vehicle charging has entered a high-quality growth phase, with over 18 million registered users and connections to 3,000 charging operators [3] - The company is optimizing its revenue structure through the restructuring of its television set-top box, digital city, and industrial internet segments [3] Group 3: Market Expansion and Performance Outlook - The electricity trading market is rapidly expanding, with the company conducting trading operations in 11 provinces and achieving over 1.9 billion kWh in trading volume in 2024, a year-on-year increase of over 500% [4] - The company has a strong foundation in user and data assets from over 10 years of service in various energy scenarios, facilitating the transition of users from consumption to trading [4] - The company is developing an energy trading platform that utilizes AI predictive models to enhance market analysis and pricing accuracy [4] Group 4: Profit Forecast and Valuation - The company is a leader in energy IT and is accelerating the nationwide promotion of its marketing 2.0 strategy while focusing on high-growth areas such as charging stations and virtual power plants [5] - The company expects to gradually divest from non-core internet terminal businesses, leading to improved profitability, with projected net profits of 513 million, 636 million, and 931 million yuan for 2025-2027 [5]