**Star News, Jinkai New Energy (600821) replied to investors' concerns on the investor relations platform on February 28.
Investors:With the continuous expansion of the scale of electricity market transactions, what is the impact of electricity prices on the company's performance?
Secretary of the Board of Directors of Jinkai New Energy:Dear investors, hello! Overall, the marginal impact of electricity price fluctuations on the company is at the bottom. Up to now, most provinces in China have carried out medium and long-term electricity market-oriented transactions, and the construction of electricity spot markets has made rapid progress, among them, Shanxi and Guangdong have been transferred to formal operation at the end of 2023, and Shandong, Mengxi and Gansu have entered the stage of long-term settlement trial operation. Judging from the electricity trading situation in recent years, the company believes that the marginal impact of the most volatile fluctuations caused by the electricity market-based transaction has been at the bottom. From the company's point of view, projects are divided into stock projects and incremental projects. From the perspective of stock projects: Xinjiang region accounts for more than 1 3 of the company's total power generation, and almost all of them are quasi-Anhui DC projects planned by the state for the West-East Power Transmission Channel, and the receiving end is the East China Power Grid, with very competitive electricity prices and high-quality assets; The Ningxia region is mainly photovoltaic assets, and the medium- and long-term trading policies in 2023 will have a great impact on the electricity price in the region, but the company judges that the electricity price has been at the bottom of the stage; The spot market in Shanxi has been in trial operation for 3 years, and from the perspective of historical transactions, the electricity price has gradually increased every year, and the company is a leading photovoltaic project in Shanxi, and a differentiated electricity price policy may be introduced in the future; The Shandong regional spot market has been in operation for 2 years, and the company has a high proportion of wind power assets, and the impact of electricity prices is small from the transaction results. From the perspective of incremental projects: the company has fully considered the possible impact of electricity prices after the future spot transaction in terms of the power supply structure, grid structure, and power supply and demand development trend of the project area in combination with the power supply structure, grid structure, and power supply and demand development trend of the project area when making investment decisions; On the other hand, the company continues to innovate the project development model, and in some projects, it refers to international practices and introduces mechanisms such as long-term PPA or take-or-pay agreements to hedge the risk of electricity price fluctuations in the future electricity market. In addition, the company actively responds to the call of the state to promote green power consumption, relies on the green power trading mechanism, actively participates in green electricity and green certificate trading, and gives full play to the environmental value of green power. Since 2023, the company has traded a total of 45,302 green electricity across provinces and regions90,000 kWh, with a total of 64,288 green certificates traded, effectively improving the income level of the corresponding projects. Generally speaking, the company continues to increase the research and development and application of digital technology for power trading, benchmarking the advanced level in the industry in terms of power, power supply and demand and electricity price, and has established a five-in-one trading system covering "strategy, trading, marketing, and risk control", which has effectively coped with the challenges brought by electricity price fluctuations in the past three years, and from the perspective of the company's current asset structure and future layout planning, the marginal impact of electricity marketization on the company has been at the bottom. Thank you for your interest.
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