Key takeaway

The company released its 2025 annual report and 2026 firstquarter report. The company released its 2025 annual report, with strong growth in full- year performance. In 2025, the company recorded operating revenue of RMB717mn, up 30.49% YoY; net profit attributable to shareholders of the parent company was RMB130mn, up 39.18% YoY; net profit attributable to shareholders of the parent company after deducting nonrecurring gains and losses was RMB123mn, up 49.58% YoY. The company’s core power forecasting business continued to perform strongly. Benefiting from the implementation of the “observable, measurable, adjustable and controllable” management requirements for distributed PV, the number of power plants served by the company hit a new record high in terms of net additions, with 1,684 added throughout the year, bringing the total to 6,029. At the same time, the company achieved notable results in expense control, and operating cash flow was strong, with a net amount of RMB96mn for the year, up 40.50% YoY. The company actively seizes opportunities from AI and power market reform. Innovative businesses are advancing steadily. It newly launched the Kuangming power trading large model 1.0 and built a “tools + custody” service system, accelerating its move toward the blue ocean of asset operations. We maintain “buy” rating on the company.

Event

On April 10, the company released its 2025 annual report. In 2025, the company recorded operating revenue of RMB717mn, up 30.49% YoY; net profit attributable to shareholders of the parent company was RMB130mn, up 39.18% YoY; net profit attributable to shareholders of the parent company after deducting non- recurring gains and losses was RMB123mn, up 49.58% YoY. On April 25, the company released its 2026 first-quarter report. In 1Q26, the company recorded operating revenue of RMB152mn, up 4.67% YoY; net profit attributable to shareholders of the parent company was RMB23mn, up 36.14% YoY; net profit attributable to shareholders of the parent company after deducting non- recurring gains and losses was RMB21mn, up 39.47% YoY.

Risks

(1) Risk from changes in industry policies: The company’s business is significantly affected by national macro policies and local power market-oriented policy regulation. If relevant policies undergo major adjustments, the company’s sustained business growth may be affected.

(2) Market competition risk: The expansion of the industry market size has attracted various participants and accelerated technological iteration. If the company fails to continuously strengthen its core advantages, it may face squeezed market share and weakened core competitiveness.

(3) Accounts receivable risk: With the expansion of business scale, the balance of accounts receivable has increased accordingly. If customer credit conditions deteriorate in the future or collection measures are not effectively implemented, bad debt risk may arise and adversely affect the company’s asset quality and business development.

(4) Technology iteration and cross-industry competition risk: The rapid development of next-generation information technology, together with the accelerated entry of cross-industry competitors such as internet giants and energy equipment manufacturers, may impact the company’s existing technology and product advantages.

(5) Risk of rising costs and expenses driven by business and technological innovation: To maintain the competitiveness of technology and products, the company needs to continuously increase R&D investment. If revenue growth from related businesses cannot cover the investment, it may adversely affect short-term profitability.