Sunpower Group (5GD) Investor Presentation summary

Business overview and strategy

• Leading provider of clean industrial steam with a focus on recurring, long-term, high-quality income and a robust pipeline of projects in China.

• Pioneers the circular economy model, supporting China's carbon peak and neutrality goals, and operates 11 GI projects with ~415 km of pipeline.

• Maintains exclusive, long-term concessions (typically ~30 years) and serves over 20 customer industries, mainly through B2B arrangements.

• Recognized as a Top 500 China Energy Enterprise and awarded for green and low-carbon development.

• Strategy aligns with national policies promoting centralized steam, circular economy, and ultra-low emissions.

Financial performance and growth

• FY2024 steam sales volume rose 9.5% YoY to 11.46 million tons; GI recurring revenue up 1.7% YoY to RMB3,316.5 million.

• GI recurring PATMI (excluding one-off bad debt) grew 9.5% YoY to RMB372.1 million; including provision, PATMI was RMB292.0 million.

• Group revenue reached RMB3,505.2 million, gross profit RMB892.8 million, and EBITDA RMB911.7 million in FY2024.

• Net cash from operating activities was RMB622.3 million, with underlying operating cash flow at RMB645.6 million.

• Balance sheet as of 31 Dec 2024: cash and equivalents RMB1,406.8 million, equity attributable to holders RMB2,400.9 million.

Business model and operational strengths

• High entry barriers with exclusive concession rights and extensive pipeline networks.

• B2B model with price adjustment mechanisms linked to feedstock costs, supporting long-term profitability.

• Large, diversified customer base across textile, chemical, food, and other industries in economically developed regions.

• Innovative technologies in long-distance steam distribution and environmental protection, achieving emissions below national gas standards.

• Circular economy model enables resource recycling, cost reduction, and additional revenue from waste treatment.