Sunpower Group (5GD) Investor Presentation summary

Business overview and strategy

• Operates as a leading provider of clean industrial steam, electricity, and heating, focusing on centralized facilities and the circular economy model in China.

• Holds a sizeable GI portfolio with 11 projects in operation, typically under ~30-year exclusive concessions, serving over 20 industries.

• Recognized for ultra-low emissions capability, supporting China's carbon peak and neutrality goals, and listed among the 2024 Top 500 China Energy Enterprises.

• Demonstrates robust 1Q2025 performance: steam sales up 4.6% YoY, recurring gross profit up 8.8%, and recurring PATMI up 9.3%.

• Awarded for ESG leadership and green development, with a focus on shareholder value and special dividends.

Investment highlights

• Maintains a leading market position aligned with national policies on carbon reduction and circular economy.

• Proven GI business model generates long-term, high-quality recurring income with high entry barriers and exclusive rights.

• Demonstrates continuous financial growth, with a 15% CAGR in steam sales and 53% CAGR in recurring PATMI from FY22 to 1Q25.

• Well positioned for long-term growth through organic expansion, technological upgrades, and a robust project pipeline.

• Strong ESG and sustainability practices, with zero discharge and recycling initiatives, and disciplined management.

Project portfolio and updates

• Changrun Project: Exclusive supplier in a major towel manufacturing cluster, using treated wastewater and sludge as feedstock, with high IRR and growth potential.

• Shantou Project: Rapid ramp-up in a textile hub, exclusive supplier, high IRR, circular economy model, and new revenue streams.

• Yongxing Plant: Located in a developed region, diversified customers, ultra-low emissions, and post-M&A upgrades.

• Other projects (Xinyuan, Suyuan, Xintai, Tongshan, Shanxi Xinjiang, Lianshui, Quanjiao, Jining) feature exclusive concessions, circular economy models, and growth from industrial park development.