SPIC IFH(SZ:000958)2022-12-06 11:08Group 1: Development Plans - The company and Hebei company are discussing the 13th Five-Year Plan, focusing on creating three energy bases: a comprehensive energy base in the Beijing-Tianjin-Hebei region, a northern renewable energy base primarily for wind and solar, and a combined heat and power base centered around cities [1][2]. - The company aims to achieve three major leaps: from a focus on Hebei to a national presence, and then to international expansion during the 13th Five-Year period [2]. Group 2: Electricity Supply and Subsidies - There are varying degrees of electricity supply restrictions in different regions due to insufficient grid infrastructure, but the company's situation is not particularly severe [2]. - The national electricity price reduction has increased the renewable energy fund from 1.5 cents to 1.9 cents per kilowatt-hour, which is expected to effectively address subsidy arrears [3]. Group 3: Financial Status and Funding - As of the end of the third quarter, the company's cash on hand was approximately 60 million, and after a non-public fundraising of 1.3 billion in December, the company paid 917 million to Hebei company, leaving a year-end cash balance of 560 million [3]. - The company anticipates manageable funding pressure for 2016 based on project construction status [3]. Group 4: Heating Projects and Economic Viability - The development of small nuclear heating projects is complicated by market demand and long construction periods, with significant investment and economic viability still under discussion [4]. - The company has closed several thermal power plants as per national requirements, with losses reported: 23 million for Plant 1 and 25 million for Plant 3, while Plant 2 remains operational with a profit of 75 million in 2015 [5]. Group 5: Future Projects and Investment Returns - The demand for heating in the region is rapidly increasing, necessitating the construction of the second phase of the Liangcun Thermal Power project, which is estimated to require a total investment of 560 million [6]. - The internal rate of return for the project is estimated at 19.44% after tax, with a capital return rate of 51% and a payback period of 6.58 years [7].