Since the beginning of this year, Xizi Clean Energy (002534.SZ), an energy equipment supplier, has been gaining significant momentum. The company’s core businesses in solar thermal power generation and nuclear power are entering a high-growth cycle, with the market expecting strong performance from this trending company.
Recently, reporters from Cailian Press conducted on-site research at Xizi Clean Energy. Relevant company executives stated: “We believe that the recent rise in market attention is primarily due to changes in corporate governance.”
In May this year, Wang Kefei, the son of the company’s actual controller, assumed the position of Chairman of Xizi Clean Energy. This “post-80s” new chairman explicitly proposed to develop the nuclear power business after taking office and proclaimed the strategic slogan of “recreating another Xizi Clean Energy.”
Looking ahead to the next 3-5 years, relevant company executives stated that although solar thermal power generation and nuclear power businesses are currently small in scale, they will gradually become the main drivers of the company’s performance growth. Solar thermal power generation is starting to enter a large-scale commercial stage. During the 15th Five-Year Plan period, the company expects to secure solar thermal power generation orders of around RMB 1 billion annually. The nuclear power business aims to first achieve annual order opportunities worth RMB 300-500 million, then rely on increasing market share and expanding its product portfolio to reach a medium- to long-term plan of securing RMB 1-2 billion in additional nuclear power orders annually.
When asked about the prospects of the traditional waste heat boiler business, the aforementioned executive stated that waste heat boilers would play more of a “cash cow” role, serving as a leading product to be pushed into international markets. Once overseas operations are successfully established, it will lay the foundation for other business lines.
Solar Thermal Business: Entering Large-Scale Commercialization, Significant Market Growth Expected During the 15th Five-Year Plan Period
As one of the renewable energy technology pathways, compared with photovoltaic power generation, solar thermal power generation has been relatively slower in terms of commercialization. Its mainstream molten salt energy storage technology uses nitrate salts to store thermal energy, which has lower costs, is more environmentally friendly, and safer than batteries. After years of development, it is now in the pre-stage of large-scale commercial application.
Data shows that in recent years, molten salt energy storage has mainly been applied in specific scenarios such as integrated solar thermal + photovoltaic/wind power bases, flexible retrofitting of coal-fired power plants, and clean heating in industrial parks. Typical projects include the zero-carbon factory for Xizi Aviation built by Xizi Clean Energy, the Shaoxing green electricity project; the China Power Engineering Hami molten salt tower 50MW solar thermal power generation project participated in by Dongfang Boiler Co., Ltd., a subsidiary of Dongfang Electric Corporation (600875.SH); and the Three Gorges Energy Qinghai Golmud 100MW solar thermal project participated in by ST Hanggao (now delisted).
With the completion and commissioning of demonstration projects, entering 2025, solar thermal power generation is stepping into a new phase characterized by “large capacity, low cost, and independent installation,” drawing attention to the prospect of large-scale commercial applications of molten salt energy storage. According to CSPPLAZA, in 2024, the total newly installed solar thermal power generation capacity nationwide reached 250MW. Currently, there are 42 solar thermal power generation projects under construction or being advanced domestically, with a total installed capacity of nearly 5GW. Based on project timelines and progress, it is estimated that the total installed capacity will exceed 1.8GW this year.
In this rapidly growing sector, Zhejiang Cosin Technology Co., Ltd. (hereinafter referred to as Cosin Technology) is the global leader, specializing in tower-based concentrated solar power (CSP) and molten salt energy storage. Established in 2010, the company received investment from Xizi Clean Energy in 2011, which currently holds 3.25% of Cosin Technology’s shares. Benefiting from improving industry conditions, Cosin Technology is striving for a Hong Kong listing, with the market expecting its IPO success to bring substantial investment returns to Xizi Clean Energy.
Around 2011, Xizi Clean Energy, primarily engaged in waste heat boiler operations, began exploring new energy fields such as solar thermal power generation, nuclear power equipment, IGCC, and comprehensive coal gasification utilization. In its 2015 annual report, the company first disclosed order information in the solar thermal power generation sector, officially entering the CSP field.
After nearly a decade of development, the company is poised to reap significant benefits during this upturn in the industry. “The policies supporting CSP have recently gained considerable momentum. It is generally expected that during the 15th Five-Year Plan period, there will be an annual addition of 3 GW of CSP installations, corresponding to a total investment scale of nearly RMB 50 billion. The company could capture approximately 15% of the value share, presenting a substantial opportunity for a marked increase in new orders.” According to a company representative, due to CSP being a relatively new industry domestically, the gross margin levels of new products are significantly higher than those of traditional products, thereby offering notable benefits to the company’s performance.
It should be noted that the 15th Five-Year Plan has not yet been released, and the aforementioned order projections are mainly based on other policy objectives and actual implementation progress. According to multiple documents issued by the National Development and Reform Commission and the National Energy Administration, by 2030, the total installed capacity of large-scale renewable energy bases focused on desert, Gobi, and barren areas is planned to reach 455 GW. This creates a rigid demand for complementary stable power sources, leading the industry to estimate an annual addition of 3 GW of CSP installations during the 15th Five-Year Plan period.
Nuclear Power Business: Chairman Takes Charge Personally; Future External M&A Opportunities Sought
Following the successful deployment of its CSP business, Xizi Clean Energy also made breakthroughs in its nuclear power business. In its 2016 annual report, the company first disclosed securing nuclear power orders worth RMB 14.16 million. It is reported that Xizi Clean Energy primarily focuses on upstream equipment in the nuclear power sector, including moisture separators, high-pressure heaters, and deaerators.
“Our company holds Class II and III nuclear manufacturing qualifications. Assuming the approval of 10 nuclear power units annually, our company’s potential participation in the nuclear power market is estimated at around RMB 4 billion per year. Our short-term goal in the nuclear power market is to secure RMB 300-500 million in orders within 1-2 years.” A company representative stated that short-term order growth would primarily depend on increasing the market share of existing nuclear power operations.
According to interviews conducted by Cailian Press reporters, due to the unique nature of the industry, domestic market growth each year largely depends on the number of approved nuclear power units. Over the past four years, the annual approval figure has consistently remained around 10 units, forming a general expectation of future market growth rates. The 2025 Blue Book of China’s Nuclear Energy Development Report shows that China has a total of 102 operational, under-construction, and approved nuclear power units with a combined installed capacity of 113 GW, making China’s overall nuclear power scale the largest globally for the first time.
In May this year, Wang Kefei succeeded his father Wang Shuifu as chairman of Xizi Clean Energy. After taking office, he began personally overseeing the nuclear power business and set a medium- to long-term goal of “creating incremental growth in the nuclear power market as a second growth curve.”
To achieve this goal, Xizi Clean Energy upgraded and constructed a dedicated clean manufacturing workshop for nuclear power at its Chongxian Manufacturing Base this year, with a planned total production capacity capable of handling RMB 2 billion in orders. Phase I of the project was just completed and put into operation in September. Simultaneously, in August, the company established Hangzhou Xizi Nuclear Energy Technology Co., Ltd., positioning it as the main platform for its full entry into the nuclear power sector.
Relying on the new factory and platform, the aforementioned official stated that the company plans to expand into more new nuclear power businesses to achieve its medium- and long-term goals. It is also preparing to participate in backend nuclear activities such as spent fuel processing, spent fuel containers, nuclear-related instrumentation, nuclear material protection facilities, and nuclear fusion-related businesses. The company may also introduce some teams. The overall goal is to increase its penetration rate in the nuclear power industry.
It is reported that, apart from the growth prospects of the domestic nuclear power market, the surge in overseas nuclear power demand is also one of the reasons attracting manufacturers to aggressively expand their nuclear power businesses. Recently, the World Nuclear Association predicted that global nuclear power installed capacity will double to 746 gigawatts by 2040. The global AI boom has driven explosive growth in data centers, making relatively clean and high-output nuclear energy a key competitive factor. Stimulated by this trend, shares of nuclear power companies, especially those related to nuclear fusion, have soared. In the U.S. stock market, several super-performing stocks such as OKLO, SMR, and LEU have emerged, with annual gains reaching nearly 700%. In China’s A-share market, companies like Sifang Co., Ltd. (601126.SH) and Yingliu Co., Ltd. (603308.SH) have gained market attention due to their association with nuclear power concepts.
