Recently, Jin Kai New Energy (600821.SH) announced that it will collaborate with the Xinjiang branch of the National Supercomputing Center in Guangzhou to invest in the construction of the Xinjiang Changji Prefecture Changji City Intelligent Computing Center project, with a total computing power scale reaching 5,000P, and the initial construction scale being 2,000P. The recent initiation and construction of a batch of intelligent computing center projects signify China's further expansion in the field of computational economy, enhancing the country's competitiveness in the global digital transformation. Intelligent computing centers, characterized by capital and technology intensity, share commonalities with new energy power generation projects in terms of business models, and the industry development is burgeoning. As a well-known new energy power generation enterprise, Jin Kai New Energy has endowed the intelligent computing center with new energy features, which is expected to promote the deep integration of green energy and intelligent computing, and help achieve the goals of carbon peak and carbon neutrality.

At present, Jin Kai New Energy has covered more than 20 provinces nationwide, with an approved installed capacity of 6,958 megawatts and a grid-connected capacity of 4,767 megawatts, showing a good momentum in the development of its main business in new energy. In March 2024, Jin Kai New Energy signed a Strategic Cooperation Framework Agreement with Bai Xin Information Technology Co., Ltd., and both parties plan to establish a comprehensive strategic partnership in green computing centers, green electricity, and industry chain integration. The landing of "green computing power" in Xinjiang Changji by Jin Kai New Energy is a practical exploration of the company's strategic layout, and with the continuous landing of other intelligent computing projects, it is expected to create a "second main business" for the company.

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The Perfect Integration of Computing Power and New Energy

In the past two years, the breakthroughs achieved in the field of artificial intelligence have been widely regarded as the most important scientific and technological achievements. At this stage, the core of developing artificial intelligence lies in computing power, and the complex neural network models relied upon by deep learning technology often contain billions or even tens of billions of parameters. Only sufficient computing power can enable the model to learn from massive data. For a while, computing power has become a scarce resource sought after globally. According to the Implementation Opinions on Deeply Implementing the "East Data West Computing" Project and Accelerating the Construction of a National Integrated Computing Power Network jointly issued by the National Development and Reform Commission and four other departments, by the end of 2025, a preliminary mechanism for the two-way collaboration between computing power and electricity will be formed, and the proportion of green electricity in new data centers at national hub nodes will exceed 80%. This year's government work report also specifically mentioned "moderately advancing the construction of digital infrastructure in advance, and accelerating the formation of a national integrated computing power system," and various places across the country have introduced policies related to the construction of computing power centers.

The operation of massive computing power requires huge energy to maintain, and against the strategic background of carbon peak and carbon neutrality, how to achieve the green and low-carbon intelligent computing has become the focus of industry attention. Jin Kai New Energy, a leading domestic energy ecological enterprise, has taken a big step towards green intelligent computing based on a profound insight into industry development trends and market demands. The 2,000P intelligent computing center project invested and constructed by Jin Kai New Energy in Changji City, Changji Prefecture, Xinjiang, will use domestic and international advanced GPU chips, with an initial construction scale of 2,000P, an investment of 451 million yuan, and an expected construction period of 2 months; the long-term computing power scale is expected to reach 5,000P. At the same time, Jin Kai New Energy will build supporting new energy power generation projects to increase the company's installed capacity and optimize electricity consumption.

As a cutting-edge facility in today's information technology field, the intelligent computing center has strong computing power and data processing capabilities. It can provide a solid support for the development of emerging technologies such as artificial intelligence, big data, and cloud computing. The intelligent computing center invested and constructed by Jin Kai New Energy will fully integrate its professional technology in solar and wind energy fields and the renewable energy advantages of the Changji region to provide green energy for the intelligent computing center. The advanced technologies such as source-network-load-storage applied in the project support the integrated development with renewable energies such as wind power and photovoltaics, achieving local consumption of energy, which can greatly reduce the operating costs of the intelligent computing center. At the same time, the intelligent computing center will optimize equipment layout, adopt advanced energy-saving technologies and intelligent temperature control systems, automatically adjust the cooling capacity according to equipment operation and environmental temperature, achieve energy saving and consumption reduction, and create a truly green computing power. This will make the project not only a significant expansion of Jin Kai New Energy in the business field but also better reflect its corporate philosophy of green development and scientific and technological innovation.

A Win-Win for Enterprises and Local Economic Development

The successful landing of the 2,000P intelligent computing center project in Changji City will have important economic value for both Jin Kai New Energy and Changji City. Jin Kai New Energy has been committed to the development and utilization of new energy, and has developed rapidly in recent years. By the end of the first half of 2024, the company has covered more than 20 provinces nationwide, with an approved installed capacity of 6,958 megawatts and a grid-connected capacity of 4,767 megawatts. At this stage, the competition in new energy power generation is becoming increasingly fierce, and the market is gradually forming a competitive pattern dominated by central and state-owned enterprises. Major companies in the industry are actively exploring new application scenarios. The intelligent computing center has a huge demand for electricity and is also a recognized trend in current scientific and technological development. This time, the company's strategic layout around new technologies and digitalization, promoting the integration of computing power and new energy, and investing in a 5,000P intelligent computing center in Xinjiang Changji, is expected to create a replicable and broad market space for new business models. From a longer-term perspective, "computing power + energy" will also provide strong support for Jin Kai New Energy's technological research and development in fields such as artificial intelligence and big data, enhance the company's technical level and innovation ability, and strengthen the company's core competitiveness.

At present, China's total computing power scale ranks second in the world. According to estimates by the China Academy of Information and Communications Technology, the proportion of electricity consumption for data centers in China's total electricity consumption will increase to 4% by 2030. According to the data of the China Academy of Information and Communications Technology, for every 1 yuan invested in computing power, it will drive 3 to 4 yuan of GDP growth. As a major infrastructure project, the intelligent computing center will attract a large influx of talent, technology, and capital, and drive the development of related industries. The Intelligent Computing Center Innovation and Development Guide issued by the National Information Center points out that during the "14th Five-Year Plan" period, under the condition of achieving 80% application level in intelligent computing centers, the investment of cities in intelligent computing centers can drive the core industry of artificial intelligence to grow about 3 times and the related industries to grow about 40 times. Changji has great potential in new energy power generation and is a power output area of the "West-East Electricity Transmission" project. The landing of Jin Kai New Energy's intelligent computing center project will also have a significant role in promoting the local economic development of Changji.

Energy Transition Creates Opportunities for the Development of the Second Main BusinessThe 20th National Congress of the Communist Party of China proposed that promoting the green and low-carbon development of economic and social progress is a key link in achieving high-quality development. Against this backdrop, the green development evolution of intelligent computing is not only a need for energy conservation and carbon reduction but also a demand for the sustainable development of the industry. Yu Mingyang, Secretary of the Party Committee and Chairman of Jin Kai New Energy, once stated in an interview that achieving the "dual carbon" goals is not something that can be achieved overnight. It requires the industrial chain to further increase green added value, transform green electricity into green products, and promote the green and low-carbon upgrade of the economy.

Jin Kai New Energy continues to optimize, strengthen, and expand its main business of new energy power stations. Relying on its existing operational foundation and scale advantages, it increases the integration of green electricity with high-energy-consuming and high added-value industries, expands the upstream and downstream of the industrial chain to further increase green added value, and actively explores strategic opportunities in the fields of green aviation fuel and green computing power through models such as "source-load linkage and multi-energy complementarity."

According to the "Action Plan for High-Quality Development of Computing Infrastructure" jointly issued by the Ministry of Industry and Information Technology and five other departments on October 8, 2023, the target scale of computing power by 2025 is expected to exceed 300 EFLOPS, with intelligent computing accounting for 35%. It is estimated that the compound annual growth rate of computing power from 2022 to 2025 will be about 18.6%, and with the dual increase in intelligent computing scale and proportion, the compound annual growth rate is expected to exceed 32.6%.

The "green computing power" combined with new energy electricity and intelligent computing power has obvious advantages in policy support, development speed, and market space, and the industry development is in its infancy. Jin Kai New Energy has been deeply involved in the field of new energy power generation for many years, and the "three curves" business layout centered on new energy, new technology, and digitalization has reached a considerable scale. The "green computing power" has similarities with existing businesses in terms of business models. With the continuous implementation of subsequent projects, it is expected to create a "second main business" for the company.

Jin Kai New Energy's investment of 450 million yuan in the construction of an intelligent computing center is an important layout under the green development strategy. The company is expected to use such a green, efficient, and intelligent intelligent computing center to set a new benchmark for promoting the deep integration of the digital economy and green development. Following the "green" path, Jin Kai New Energy is practicing the green development concept with practical actions and striving tirelessly to achieve the dual carbon goals and develop new quality productive forces.