wsdl(SH:600995)2025-11-03 02:36Summary of Conference Call for Nanning Meixu Pumped Storage Project Industry Overview - The conference call discusses the pumped storage and new energy storage industry, focusing on the Nanning Meixu pumped storage project and other related projects by the company. Key Points and Arguments 1. Project Timeline and Capacity - The Nanning Meixu pumped storage project is expected to be fully operational by the end of 2025 with a capacity of 2.4 million kilowatts. Two units are already operational, and the remaining two are expected to be operational by the end of the year, entering commercial operation in January 2026 [2][6][4]. 2. Future Projects - Other projects, including Zhaoqing Langjiang and Huizhou Zhongdong, are planned to have their first units operational by the end of 2026, with full operation expected in the first half of 2027. Additional projects in Maoming, Guilin, and other locations are scheduled for completion between 2027 and 2029 [2][6]. 3. Revenue Composition - For the first three quarters, the company's pumped storage business generated revenue of 3.083 billion yuan, accounting for 62% of total revenue. Peak regulation hydropower contributed 1.65 billion yuan (31%), while new energy storage contributed 267 million yuan (5.02%) [2][9]. 4. Profit Contribution - Pumped storage and new energy storage businesses contribute over 90% of the company's total profit. However, due to centralized management costs, it is challenging to break down the specific profitability of each business segment [2][10]. 5. Pricing Mechanism - The pricing mechanism for new energy storage is expected to reference pumped storage, including capacity compensation and market transaction income. The National Development and Reform Commission is working on a unified pricing policy [4][15]. 6. Cost of Projects - The comprehensive cost of the Ningxia project is approximately less than 0.8 yuan per watt. The construction cost for the Lijiang Huaping all-vanadium flow battery project is estimated at 1.7-1.8 yuan per watt [4][17]. 7. Market Entry and Profitability - The Meixu project has entered the spot market, but the contribution to overall profit is limited due to low price differentials in the Guangdong spot market. The revenue from the spot market is around ten million yuan, which is relatively small compared to capacity fees [2][7]. 8. Future Capacity Goals - The company aims to achieve a total installed capacity of 3.6 billion kilowatts by 2035, with plans to add 2 million kilowatts during the 14th Five-Year Plan and 3 million kilowatts during the 15th Five-Year Plan [4][14]. 9. Technological Advancements - The company is exploring various energy storage technologies, including sodium-ion batteries and emerging technologies like gravity storage and compressed air storage, to enhance its portfolio [4][18]. 10. Regulatory Environment - The company is closely monitoring the regulatory environment as provinces are developing specific policies regarding capacity compensation and participation in the spot market [4][15]. Additional Important Information - The company is currently in the first pricing cycle, and the reduction of capacity and energy fees will be spread over three years to mitigate profit impacts [2][12]. - The internal rate of return for completed projects is set at 6.5%, influenced by capital input, loan rates, and operational costs [3][16]. - The company emphasizes that it will not pursue unprofitable projects, adhering to a conservative approach in project development [4][19].