Sunpower Group (5GD) Investor Presentation summary

Business overview and strategy

• Leading provider of clean industrial steam with a focus on recurring, high-quality income and circular economy models, supporting China's carbon neutrality goals.

• Operates 11 GI projects with a robust pipeline, serving over 20 industries and 541 customers across 406 km of pipelines.

• Maintains exclusive concessions, typically for 30 years, with B2B arrangements and price adjustment mechanisms.

• Business model features high entry barriers, resilient demand, and innovative technologies for environmental protection and efficiency.

• Strategic alignment with national policies, including the 14th Five-Year Plan and carbon emission targets.

Financial performance

• 1H2024 steam sales volume rose 14.4% YoY to 5.68 million tons; GI recurring revenue up 3.3% YoY to RMB1,655.1 million.

• GI recurring EBITDA increased 24.8% YoY to RMB549.5 million; GI recurring PATMI up 34.5% YoY to RMB193.9 million.

• Group revenue for 1H2024 was RMB1,737.0 million, with gross profit of RMB469.1 million and net profit of RMB251.1 million.

• Net cash from operating activities in 1H2024 was RMB126.6 million; underlying operating cash flow RMB150.0 million.

• Convertible bonds maturity extended to April 2025; group exploring funding options to meet obligations.

Project portfolio and updates

• Key projects include Changrun, Yongxing, Shantou, Xinyuan, Suyuan, Tongshan, and Shanxi Xinjiang, each with exclusive supply rights and circular economy features.

• Projects located in economically developed regions, serving diverse industrial clusters and residential customers.

• Recent upgrades and expansions have improved operational efficiency and broadened product offerings, such as electricity, compressed air, and waste treatment.

• New revenue streams added through waste product sales, sludge incineration, and expanded heating supply.

• High IRR and double-digit investment returns reported across major projects.