Zhejiang Xinzhonggang Thermal Power Co Ltd

On August 26, the A-share market fluctuated lower in the afternoon. The Shanghai Composite Index rose 0.59 percent to 3,912.52 points, the Shenzhen Component Index rose 0.69 percent to 13,841.33 points, the ChiNext Index rose 0.51 percent to 3,414.88 points, and the Beijing Stock Exchange 50 Index rose 0.45 percent to 1,067.97 points. Total turnover across the three exchanges reached 1.8218 trillion yuan, down 22.4 billion yuan from the previous session. In the afternoon, the power sector strengthened. Lixil New Energy surged in a straight line and hit the daily limit up within one minute, closing at 13.52 yuan per share with a total market value of 12.619 billion yuan. Earlier, Xinzhonggang and Chenzhou Electric Power International had already hit their daily limit up, while Huadian Liaoning Energy and GCL Energy rose in tandem. On the news front, the 2026 Green Computing and Artificial Intelligence Conference opened in Hohhot on August 22. Data showed that in 2025, electricity consumption by China's computing facilities reached 170 billion kilowatt-hours, up about 30 percent year on year. The National Energy Administration expects that during the 15th Five-Year Plan period, national computing electricity consumption will increase by an average of more than 100 billion kilowatt-hours per year. Lixil New Energy mainly operates wind power and photovoltaic power generation. In the first half of the year, its operating revenue was 644 million yuan, up 29.75 percent year on year, and net profit was 73.0239 million yuan, up 715.75 percent year on year. The profit growth was mainly driven by the grid connection and operation of the Xinjiang power transmission project by an associated company and an increase in new energy subsidy payments received.

On July 23, the A-share power sector was active again, with Lixinnengyuan strongly securing six consecutive daily limit-ups, Xinneng Shares and Xinzhonggang both achieving two consecutive daily limit-ups, and stocks such as Shimao Energy, Huadian Liaoneng, Chuanneng Dongli, and Jinko Technology also collectively surging. Behind the market heat is the climbing electricity load this summer. In July, electricity loads on power grids in many regions continued to hit historical peaks. The maximum load on the Jiangsu power grid reached 157.59 gigawatts, Zhejiang reached 133 gigawatts, and the national maximum load reached 1.551 billion kilowatts, exceeding the historical extreme of 1.508 billion kilowatts set on July 17, 2025. The National Development and Reform Commission expects that this summer the national maximum electricity load will reach 1.6 billion kilowatts, an increase of 90 million kilowatts year-on-year, and the peak summer power supply guarantee has entered a critical period. In the medium to long term, new economic formats have become an important increment in electricity consumption growth. In June, total electricity consumption in society was 898.1 billion kilowatt-hours, a year-on-year increase of 3.7 percent, of which electricity consumption by high-tech and equipment manufacturing industries was 112.1 billion kilowatt-hours, a year-on-year increase of 10.3 percent, and the growth rates of electricity consumption in charging and battery swap services and internet data services were as high as 57.1 percent and 41.4 percent respectively. On the policy front, the National Development and Reform Commission has publicly solicited opinions on the 'Management Measures for Medium- and Long-Term Contracts for Energy Supply Guarantee', clarifying the definition of medium- and long-term power supply guarantee contracts and the government guidance and supervision framework. Prices for cross-provincial and cross-regional contracts are to be determined through negotiation between the sending and receiving parties based on the principle of 'benefit sharing and risk sharing'. Institutions generally favor the allocation value of the power sector. Great Wall Securities believes that the valuation of leading thermal power companies is at a three-year low and has potential for valuation repair. Sinolink Securities points out that leading coal and power companies have a dividend basis and are both offensive and defensive. CICC believes that the fundamentals of the distributed photovoltaic operation sector have bottomed out and long-term investment value is emerging.