1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:HSBC Qianhai Securities Limited View HSBC Qianhai Securities at:https:/ Capacity is being ramped up at sever

2、al large projects and their operational status is key to watch Besides technological advancement,we see changes in grid policies that could benefit green hydrogen projects Prefer Sungrow Power(rated Buy);maintain Buy on CNCEC(lower TP to RMB12.33 from RMB12.80)and Hold on Longi Project plan and exec

3、ution have picked up in 2025 YTD.In 1H25,a total of 2726 MW electrolysers were tendered,more than the total tendering of 2239 MW in the full-year 2024.This is an uptick from the slowdown in 2024.While actual electrolyser deliveries might be less than the orders(as occurred in 2022-24),several mega p

4、rojects are going into operation this year,marking true progress.In July 2025,the first phases of three mega projects entered trial operations:the Chifeng(green ammonia),Daan(green ammonia)and Taonan(green methanol)projects.These projects have announced overseas clients uptake contracts and have sho

5、wn technological progress.For example,the Chifeng project is running off-grid and relying on 100%solar/wind energy(as per Sina Finance,16 July 2025).We believe more time is needed to verify the projects operational status and the scale of their long-term overseas selling contracts.If these projects

6、operate smoothly,the green hydrogen business could be fully commercialised once the economics improve.We have seen operational progress at Sinopecs Kuga project,as its average utilisation was 32.5%in the past two years,and it is expected to reach full utilisation in 2026.Still many bright spots.We h