Energy Weekly Report

Two Ministries Issue Guidelines to Accelerate the Development of Virtual Power Plants
On April 8, the National Development and Reform Commission (NDRC) and the National Energy Administration jointly released the Guiding Opinions on Accelerating the Development of Virtual Power Plants. This document emphasizes that virtual power plants aggregate decentralized resources to participate in the optimization and market trading of electricity systems, playing a significant role in power supply security and renewable energy absorption. It outlines development targets for virtual power plants for 2027 and 2030, specifies conditions for their participation in electricity markets, and encourages financial support and low-interest loans through “new” policies.

<b>NDRC Releases Draft Regulations for Fair Access to Oil and Gas Pipeline Facilities</b>
On April 8, the NDRC published the <b>Draft Regulations on Fair Access to Oil and Gas Pipeline Facilities</b>. The draft states that operators of oil and gas pipeline facilities must promote independent operations and cannot use control over facilities to exclude other oil and gas enterprises or restrict market competition in upstream and downstream sectors. It requires the establishment of sound financial management systems for various operational and sales activities.

<b>China's Ecological Environment Monitoring Network Accelerates Digital Transformation</b>
The Ministry of Ecology and Environment recently issued the <b>Digital Transformation Plan for the National Ecological Environment Monitoring Network</b>, aimed at enhancing technological capabilities and establishing a new generation of ecological environment monitoring systems. This marks a significant step forward in the digital transformation of ecological monitoring.

<b>New Mineral Species Discovered in China</b>
On April 10, the Ministry of Natural Resources announced a <b>New Mineral Species Bulletin</b>, revealing the discovery of high-purity quartz deposits in the eastern Qinling area of Henan and the Altay region of Xinjiang. This material is essential for strategic emerging industries like semiconductors and photovoltaics, playing a crucial role in national high-tech competition. A representative from the Ministry stated that high-purity quartz is a globally scarce resource that China heavily depends on imports for. Recently approved by the State Council, it has been officially recognized as a new legal mineral species in China.

<b>Export Controls Implemented on Certain Medium and Heavy Rare Earth Elements</b>
On April 4, the Ministry of Commerce and the General Administration of Customs announced export controls on certain medium and heavy rare earth items, effective immediately. The announcement stated that this decision aims to safeguard national security and interests and fulfill international obligations regarding non-proliferation. The controlled items include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, which have dual-use attributes.

<b>China Releases General User Requirements Document for Small Modular Reactors Globally</b>
On April 8, China published the <b>General User Requirements Document for Small Modular Reactors</b> aimed at establishing technical discourse rights in the development and application of small reactors. This release marks a new phase of independent innovation and international cooperation in small reactor technology, facilitating global promotion and application of these reactors and contributing to the achievement of global "zero carbon" goals. The document consists of 25 chapters detailing over 1,180 specific requirements, which encapsulate China's wisdom and practical experience in the design, construction, operation, and regulation of small reactors.

<b>National Energy Administration to Conduct Comprehensive Supervision in Six Provinces in 2025</b>
On April 10, the National Energy Administration announced plans for comprehensive supervision in the electricity sector across six provinces, including Shanxi, in 2025. The focus will be on implementing planning policies, supervising natural monopoly segments, building electricity markets, and addressing pressing issues in electricity services for residents. The initiative will proceed through four steps: deployment, self-inspection, on-site supervision, and problem resolution, urging all relevant entities to enhance compliance and discipline to regulate market order and promote high-quality development in the electricity industry.

<b>State-Owned and Private Energy Companies Intensify Share Buybacks</b>
On April 8, the State-owned Assets Supervision and Administration Commission expressed full support for state-owned enterprises to increase share buybacks. Since the morning of April 8, several energy and electricity companies have demonstrated positive signals through buybacks or increased shareholding, boosting market confidence with substantial investments.

China Petroleum announced plans to increase its holdings in Sinopec's A-shares and H-shares by no less than 2 billion yuan and no more than 3 billion yuan, funded by its own resources and special loans for stock repurchases.

China National Petroleum Corporation revealed intentions to increase its holdings in PetroChina A-shares and H-shares within the next 12 months.

China National Offshore Oil Corporation announced plans for buybacks of its A-shares and Hong Kong shares within the next 12 months, with a total investment of no less than 2 billion yuan and no more than 4 billion yuan.

The State Energy Group declared its commitment to support subsidiaries in enhancing core competitiveness, advancing asset integration, and ensuring quality asset aggregation within listed companies.

China Huaneng announced plans to enhance its listed companies' quality and investment value through various measures, including timely buybacks, to create shareholder value and protect investors' interests.

China CEC announced that it plans to use 100 billion yuan for stock buybacks to support listed companies. Additionally, following stock increases on April 7, it continued to significantly invest in ETFs and stocks of central enterprises to promote capital market stability.

The China Machinery Industry Group stated it would study establishing a regular stock buyback mechanism to support the high-quality development of listed companies and protect investor interests.

China Coal Group announced ongoing support for the steady and high-quality development of its subsidiaries, launching a new shareholding plan on April 8.

On April 8, China Aviation Industry Corporation revealed share buyback and increase announcements from several subsidiaries, boosting investor confidence.

China Energy Construction Group announced it would accelerate buyback plans for its listed companies to strengthen investor confidence.

China Electronics Technology Group expressed strong support for the capital market and announced buybacks of its listed companies' stocks.

The State Grid announced measures to improve investment value in its listed companies, including planned buybacks, to solidify market confidence. Currently, its subsidiary Guodian Nari has proposed a share buyback plan amounting to 500 million to 1 billion yuan.

China Southern Power Grid announced increases in holdings of shares in its energy companies.

On April 8, China National Nuclear Corporation announced a stock buyback to further bolster market confidence. The group emphasized promoting nuclear energy development and enhancing the quality of its listed companies.

LONGi Green Energy announced a stock buyback based on confidence in future development, with a total of 1,050,000 shares purchased for approximately 15.0093 million yuan.

Chint Electric announced plans for a stock buyback of 270 million to 540 million yuan to support employee stock ownership plans.

Contemporary Amperex Technology Co., Ltd. announced plans to buy back shares worth no less than 4 billion yuan and no more than 8 billion yuan for employee incentive plans within 12 months.

<b>Leadership Adjustments at Major Energy Companies</b>
On April 9, Harbin Electric Group held a meeting to announce the appointment of Yang Xiao as Chief Accountant and a member of the Party Committee.

On April 9, China Three Gorges Energy announced the resignation of General Manager Zhang Long, with Liu Zi appointed as the new General Manager and Zhang Li appointed as Deputy General Manager. Zhang Long is now listed in personnel adjustments at Hubei Energy.

On April 1, Kunlun Energy, a subsidiary of China National Petroleum, announced that Fu Bin has resigned due to retirement age, with Liu Guohai appointed as the new executive director and chairman.

<b>Annual Reports Released: Mixed Results</b>
On April 7, Shandong Steel reported a net loss of 2.258 billion yuan for 2024, a significant increase from the 400 million yuan loss in 2023. However, they expect a reduced loss of 14.5 million yuan in Q1 2025 compared to a 638 million yuan loss in the same period last year.

Tianqi Lithium's 2024 annual report showed revenues of 13.063 billion yuan, a 67.75% decrease, with a net loss of 7.905 billion yuan, marking a 208.32% drop. Quarterly losses were substantial, particularly in Q1.

New Energy announced a 5.51% decrease in revenue to 135.836 billion yuan, with a net profit of 4.493 billion yuan, down 36.64%, marking its first decline after three years of growth. The company reported a 50.89% increase in net profit after exclusions.

Wanhua Chemical reported a 3.83% increase in total revenue to approximately 18.206 billion yuan, while its net profit fell by 22.49%. The company attributed the revenue growth to increased sales, but rising research costs and other expenses led to profit declines.

On April 10, China Huadian announced a revenue growth of 18.46% and a 50.14% increase in net profit, enhancing its profitability.

China Communications Construction Company reported revenues of 771.944 billion yuan in their annual report, with a net profit of 23.384 billion yuan and a proposed cash dividend of 4.911 billion yuan.

Jiahua Energy reported 9.153 billion yuan in revenue, a 4.32% increase, and a net profit of 1.008 billion yuan, down 14.57%.

Hekang New Energy held a performance briefing and reported a revenue increase of 220.31% for 2024, with a net profit of 10.2961 million yuan.

Jin Kai New Energy's annual report indicated total revenue of 3.612 billion yuan, a rise of 8.55%, with a slight increase in net profit.

<b>Haicheng Energy Plans IPO in Hong Kong</b>
Recently, Haicheng Energy submitted an IPO application to the Hong Kong Stock Exchange, aiming to raise funds due to a revenue increase to 12.917 billion yuan and a return to profitability. The company believes an IPO will enhance its market visibility and attract international talent.

<b>Sinopec and Saudi Aramco Sign Cooperation Framework Agreement</b>
On April 8, Sinopec announced the signing of a <b>Cooperation Framework Agreement for the Yanbu Refinery Expansion Project</b> with Saudi Aramco, which involves the construction of new ethylene and aromatics units to maximize integrated refining and chemical synergy.

<b>World's First Ultra-High Voltage Quantum Current Sensor Operational</b>
On April 8, the world's first ±800kV ultra-high voltage quantum current sensor was put into operation at the Liuzhou converter station of the Kunliulong DC project, marking a significant breakthrough in national key research on quantum sensing technology.

<b>China's First Integrated Large Fracturing Vessel Launched Successfully</b>
On April 3, China's first integrated large fracturing vessel, "Marine Oil 696," was launched, marking a significant milestone in its construction and entering a new phase of testing.

<b>Hualong One Zhangzhou Nuclear Power Unit 2 Completes Successful Hot Test</b>
On April 8, the hot performance test for Unit 2 of the Hualong One project at Zhangzhou Nuclear Power was successfully completed, simulating actual operational conditions to verify system performance.

<b>Dongfang Electric's High-Altitude Wind Power Industrial Base Officially Launched</b>
On April 8, Dongfang Electric's high-altitude wind power industrial base officially broke ground in Changdu, Tibet, aiming to manufacture high-capacity wind turbines suitable for extreme environments.

<b>State Power Investment Corporation Receives Approval for Asset Restructuring</b>
On April 10, State Power Investment Corporation announced plans to restructure assets and raise financing, following approval from the State-owned Assets Supervision and Administration Commission.

<b>Shendong Coal Mine Establishes AI Gas Panel Recognition System</b>
Recently, Shendong Coal Mine successfully developed its first AI gas panel recognition system, enhancing gas monitoring efficiency and data accuracy.

<b>Energy Storage Industry Research White Paper 2025</b>
At the recent International Energy Storage Summit, a white paper was released indicating that China's new energy storage market will gradually transition from being "policy-driven" to "market-driven" by 2030.

<b>First Steel Structure Building Industry Chain Innovation Promotion Conference Held</b>
From April 8 to 9, the first conference on promoting innovations in the steel structure building industry was held in Tangshan, Hebei, focusing on collaborative development and new initiatives.