Summary of Conference Call Notes Company and Industry Overview - The conference call discusses the **Yalong River Yazi Hydropower Station Project**, which has a total investment of **1.2 trillion** (1.2万亿) and is expected to generate significant revenue from geotechnical engineering, estimated to be **15%-20%** of the total investment, approximately **200 billion** (2000亿) [2][4]. Key Points and Arguments - The company anticipates securing around **100 billion** (1000亿) in orders due to its core competencies in **dam foundation treatment** and **slope support** [2]. - The peak order release for the Yazi project is expected to occur after the completion of the diversion tunnel construction, which will take about **three years** [5]. - The company has an in-house R&D team capable of customizing equipment based on performance requirements, with core components patented and primarily used internally, while some patents are licensed out [6][7]. - In tunnel engineering, geotechnical engineering accounts for **70%-80%** of the work, indicating the company's significant position in this core application area [8]. - The company’s **super jet grouting technology** is suitable for ground reinforcement, and its solidifying agent and anchor rod technology can be applied to slope protection [10]. - The technical difficulty of the Yazi project is considered higher than that of nuclear power and port sectors, potentially leading to higher profit margins, although actual realization depends on future developments [3][17]. Additional Important Insights - The company collaborates with large state-owned enterprises like **PowerChina** and **EnergyChina**, leveraging its proprietary technology and problem-solving capabilities as competitive advantages [13]. - Compared to competitors like **Shanghai Port and China Geotechnical**, the company’s technology allows for deeper reinforcement applications, achieving depths of **50 to 70 meters** [14]. - Smaller geotechnical companies face challenges in participating in large hydropower projects, often limited to labor or less critical tasks [15]. - The company is tracking additional projects in the water conservancy and hydropower sector, including the **Pinglu Canal** and the **Three Gorges Waterway New Channel**, which is currently in the design phase [19]. - The company has made personnel adjustments and talent reserves to meet the anticipated peak in business in the second half of the year, with a strategic cooperation agreement signed with **Gezhouba Municipal** to support future projects [20]. Conclusion The Yalong River Yazi Hydropower Station Project presents substantial opportunities for the company, with significant expected orders and a strong competitive position in geotechnical engineering. The company's technological capabilities and strategic partnerships are key factors in navigating the complexities of large-scale hydropower projects.