2025-02-13 10:51Summary of China General Nuclear Power Corporation Conference Call Company Overview - China General Nuclear Power Corporation (CGN) is listed on both the Hong Kong and A-shares markets, focusing on the investment, construction, operation of nuclear power plants, and electricity sales from these plants [3][4] - CGN's operational and under-construction capacity accounts for approximately 45% of the national nuclear power total capacity, primarily located in Guangdong, Guangxi, Fujian, and Liaoning [3][4] Key Financial and Operational Highlights - In 2024, CGN's electricity generation increased by 6.13% year-on-year, with utilization hours reaching 7,710 hours, attributed to new unit commissioning and reduced maintenance downtime [5] - The company expects to announce its financial performance in late March [5] Project Updates - The Ningde Unit 6 has completed testing and is set to commence operations soon [6] - The Cangnan Unit 3 is preparing for the First Concrete Pour (FCD), with the Guizhou project expected to enter FCD in Q3 2024 [7] - The Huizhou Units 3 and 4 received approval at the end of 2023, while Cangnan Units 3 and 4 are expected to be approved in the second half of 2024 [7] Market Pricing and Sales - Average market trading prices in various provinces: - Guangdong: 0.391 CNY/kWh, with total signed contracts of 32.1 billion kWh - Guangxi: 0.34 CNY/kWh, with over 10 billion kWh signed - Liaoning: 471 billion kWh generated, with 324 billion kWh signed contracts - Fujian: 330 billion kWh traded [8][9] - In Guangxi, the long-term contract price decreased by 0.06 CNY/kWh compared to 2024, leading to an estimated revenue reduction of approximately 600 million CNY [10][11] Impact of Price Changes - The price decline in Guangdong and Guangxi is expected to have a significant impact in 2025, while Liaoning and Fujian will be less affected [13] - The company has locked in uranium supply costs through long-term agreements to mitigate cost fluctuations [14] Future Outlook - The national plan aims for nuclear power to account for 10% of total electricity generation by 2035, with approximately 8 new units expected to be approved this year [20][21] - Despite price declines, the impact on dividends is expected to be minimal, with new units partially offsetting revenue losses [22] - The transition to a unified national electricity market is anticipated to begin trial operations in southern regions by the end of 2025 [17] Industry Trends - The introduction of comprehensive policies for renewable energy is expected to influence future electricity pricing, with nuclear power also facing potential impacts [20][23] - The competition for nuclear power generation is projected to remain stable, supported by new projects and the integration of additional nuclear stations into the company [27] Conclusion - CGN is positioned to maintain a strong operational and financial performance despite market challenges, with ongoing projects and strategic pricing agreements supporting its growth trajectory [27][31]