Event description. Important progress has been made in energy storage products for supercomputing projects: the company has received a "transaction notice" from Xuchang Xuji material Co., Ltd., confirming that the company has become the trader of energy storage batteries and ancillary equipment used in Xuji Electric Energy Storage Project, with a transaction amount of 236 million yuan.

Excess energy storage ushered in the opportunity, the first single cooperation pattern opened. Supercomputing energy storage is imperative: the strategic position of supercomputing is becoming increasingly prominent, which is of vital significance to the promotion of national economic construction, national defense construction and social development, and has become the commanding point of science and technology for countries all over the world. A large number of supercomputing processors, the resulting high energy consumption has attracted widespread attention in the industry. The application of energy storage system can improve energy efficiency and effectively reduce the cost of power purchase. Industrialization is expected to speed up. Frequent policy escorts: in recent years, many governments have introduced relevant policies to encourage the development of energy storage projects in data centers. In August 2022, Anhui Energy Bureau proposed to encourage application scenarios such as big data Center to explore new energy storage application scenarios and actively promote the construction of decentralized energy storage facilities. In November 2022, Shenzhen Municipal Bureau of Industry and Information Technology proposed to use green energy to build a new data center to share resources with substations and photovoltaic power stations. In August 2023, the General Office of Henan Provincial Government issued "several policies of Henan Province on supporting the Construction of Major New Infrastructure", which separately emphasized supporting the construction of energy storage facilities for computing infrastructure, and encouraged supercomputing centers, computing centers and new data centers to allocate energy storage according to local conditions, so as to improve the self-balancing capacity of electric power, especially to give one-time incentives to the main bodies of energy storage facilities above 1000KWh. A number of documents strongly confirm the necessity and encouragement of the application of energy storage in the field of supercalculation. The technical level and customer resources have been demonstrated: since the beginning of this year, the company has won the bid for a number of energy storage projects, including the integration of Muling's 35MW distributed optical storage and integrated energy management system, and has also signed a "Strategic Cooperation Framework Agreement" with Honghe Yuan Storage, where the two sides have reached agreement on joint research and development and commercial cooperation in the field of energy storage. The company's excellent products have been recognized by the market, thus supporting the smooth acceptance of this supercomputing project, which is the first case of the company's energy storage project in the supercomputing center.

The rechargeable electricity business is favored by Russia and the globalization is advancing rapidly. The company and the Middle East Representative Office of the Russian Federation Chamber of Commerce and Industry (referred to as CCI) signed a Memorandum of Cooperation on Highway recharging Construction of the "Life supply Line". The two sides agreed to build a highway from Iran to Russia in order to achieve the development goal of full-line intelligence and electric power, and strengthen the construction of new energy facilities such as light, storage, charging and replacement. Trunk line: 3500 km, 70 stations are expected to be invested, with a total investment of 1.4 billion yuan. Branch line: the planned length is 170000 kilometers, and it is planned to invest 3400 stations, with a total investment of 68 billion yuan. This cooperation may enhance the overseas competitiveness of the company's recharging business, enjoy industry dividends and participate in the distribution of global value chains.

Investment suggestion: we expect the company to achieve revenue of RMB 23.93 million in 2023-2025, with revenue of RMB 4.791 million, compared with the same period last year, with a year-on-year increase of + 105.3%, 45.9% and 46.9%, respectively, with net profits of RMB 1.60, 266, and 46.9 million, respectively, compared with the same period of last year. The closing price on August 11 is 36x/22x/15x corresponding to PE, maintaining the "recommended" rating.

Risk hints: overcalculation industrialization is not as expected, capacity expansion is not as expected, industry competition is intensified, Russian electrification willingness and project implementation progress are not as expected.