【Premium Interview】With Sci-Tech Innovation Bonds as Wings, Painting a New Blueprint for High-Quality Development of Energy Technology——Interview with Peng Gangping, Party Secretary and Chairman of China Huadian Science and Technology Engineering Group Co., Ltd.

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Reprinted from: Xinhua Finance

Xinhua Finance Shanghai, March 17 — (Reporter Yang Yiren) By 2025, the scale of the Sci-Tech Innovation Bond market will surpass 1.7 trillion yuan, becoming an important vehicle to guide precise financial support for the sci-tech innovation sector. The empowering effect of the “Technology Board” in the bond market continues to be prominent.

Against this backdrop, China Huadian Science & Industry Group Co., Ltd. successfully issued two rounds of sci-tech innovation bonds, covering both the Shanghai Stock Exchange and the interbank market. With low costs and high subscription enthusiasm, these have become benchmark cases for sci-tech innovation bond issuance in the energy and power sector.

Recently, Peng Gangping, Party Secretary and Chairman of China Huadian Science & Industry Group Co., Ltd., gave an in-depth interview to Xinhua Finance, sharing strategic considerations, funding allocations, and development visions for the company’s deployment of sci-tech innovation bonds. He depicted Huadian Science & Industry’s high-quality development path driven by the dual engines of “Sci-Tech Innovation + Capital.”

Strategic Planning: Dual-Engine Drive to Build Foundations; Sci-Tech Bonds Practice the Original Aspiration

As a high-end equipment platform enterprise in the energy and power sector focused on technological innovation, Huadian Science & Industry has always adhered to a dual-engine strategy of “technological innovation” and “capital operation.” The issuance of sci-tech innovation bonds is a key measure to implement this strategy.

“Our core purpose in deploying sci-tech innovation bonds is to leverage this low-cost, efficient capital market tool to precisely empower technological innovation, accelerate the cultivation of strategic emerging industries, and open a virtuous cycle of ‘technology—capital—industry,’” Peng Gangping said. This not only recognizes the company’s sci-tech capabilities but also demonstrates its active alignment with national innovation-driven development strategies and the “dual carbon” goals.

According to sources, in July and October 2025, Huadian Science & Industry issued 1 billion yuan of sci-tech innovation bonds on the Shanghai Stock Exchange (25HuakeK1) and 500 million yuan of interbank short-term financing bonds, with coupon rates as low as 1.75% and 1.74%, respectively. The first phase of the Shanghai Stock Exchange sci-tech innovation bonds saw a subscription multiple of 4.35 times, attracting many high-quality institutions such as large commercial banks, leading securities firms, and top public funds, thanks to the diversified investor base of the exchange.

Regarding this impressive performance, Peng Gangping said that the market’s enthusiastic response essentially reflects three recognitions of the company’s core value: first, clear strategic positioning and industry layout, with systematic deployment in nine major emerging industries including hydrogen energy, energy storage, biomass energy, and marine energy, demonstrating a first-mover advantage in energy transformation; second, solid sci-tech innovation strength and achievements, with key materials and equipment自主化 in PEM hydrogen production and molten salt thermal storage, supported by national-level R&D platforms, with 452 new patents in 2025, including 238 invention patents; third, stable financial fundamentals and good credit credentials, continuously optimizing asset-liability structure and maintaining stable cash flow, laying a solid credit foundation for debt financing.

The picture shows: Huadian Science & Industry’s “Huazhen” alkaline electrolyzer, “Huahan” PEM electrolyzer, and purification device series (provided by interviewee)

In terms of issuance strategy, Huadian Science & Industry adopts a “long-term and short-term combined, dual-market advancement” approach. The 3-year bonds match the funding needs of medium- and long-term R&D and industrialization projects, while 270-day ultra-short-term financing bonds supplement working capital, smoothing debt repayment pressure and precisely aligning with the funding rhythm.

“We always plan fund usage based on project orientation, evaluate repayment ability based on cash flow, and choose issuance timing with reference to market interest rates, aiming to achieve a dynamic balance among funding needs, financing costs, and repayment capacity,” Peng Gangping explained. To secure favorable financing conditions, the company has prepared systematically in advance, strengthening information disclosure and investor communication, continuously optimizing financial structure, and accurately analyzing regulatory policies and market dynamics. Next, it plans to make breakthroughs in green corporate bonds, carbon-neutral green bonds, and low-carbon transition corporate bonds.

Precise Empowerment: Capital Drip to Strengthen Sci-Tech Innovation; Breakthroughs and New Journeys

The core value of sci-tech innovation bonds lies in empowering technological innovation. Huadian Science & Industry will focus all raised funds on core areas of technological innovation and emerging industries, prioritizing support for “neck-breaking” technologies in hydrogen energy, new energy storage, AI + energy, offshore integrated energy, and other future energy tracks.

The picture shows: On January 17, 2026, Huadian Yangjiang Sanshan Island’s six offshore wind turbines’ first jacket was successfully hoisted (provided by interviewee)

Peng Gangping said that the issuance of sci-tech innovation bonds by Huadian Science & Industry is a strategic financial renewal initiative. By replacing high-cost existing debt, the company can shed burdens and operate more lightly, channeling valuable financial resources and credit space into the main battlefield of emerging industries. The company’s emerging industries mainly focus on three directions: first, scalable preparation technology for key materials such as proton exchange membranes and gas diffusion layers, as well as research on intelligent batteries, solid-state batteries, sodium-ion batteries, and active safety and intelligent operation platforms for electrochemical energy storage, along with large-capacity molten salt storage equipment; second, pilot-scale production facilities for green ammonia/green methanol, simulation labs for energy storage R&D, testing and inspection labs, and energy storage system verification platforms to accelerate the transition from laboratory results to industrialization; third, demonstration projects such as wind-solar-hydrogen-ammonia integration, offshore energy islands, and zero-carbon parks to expand application scenarios. Peng emphasized that technological strength is the credit cornerstone for sci-tech innovation bonds; the quality of innovation determines the credit profile. Without solid innovative achievements, sci-tech bonds are “water without source.”

The picture shows: Huadian Science & Industry’s R&D center for high-efficiency biogas production and comprehensive utilization technology (provided by interviewee)

It is worth noting that to highlight the sci-tech attributes, pass regulatory review smoothly, and gain market recognition, Huadian Science & Industry has fully implemented a technological innovation action plan. In 2025, it will advance 264 ongoing science and technology projects, including 35 national and provincial-level projects, and promote 15 innovation platforms. It deepens cooperation with universities such as Lanzhou University and Harbin Institute of Technology, establishing multiple joint research institutes, and building a full-chain innovation system of “basic research + application development + pilot verification + achievement transformation.”

Given the long R&D cycles and high uncertainty of technological innovation projects, Huadian Science & Industry has also established a comprehensive risk management mechanism covering all phases—pre-, during, and post-project. This includes dynamic project approval tracking, multi-department compliance supervision, and key risk early warning adjustments to ensure efficient and compliant use of funds.

Peng Gangping said, “Next, we will further improve the innovation platform matrix, support the cultivation of national-level hydrogen energy industry technology centers, plan offshore renewable energy research centers, and promote deep integration of technological and industrial innovation.”

Looking Ahead: Building an Ecosystem for Long-term Development; Crafting a Century-Old Brand with Excellence

Regarding future development, Peng Gangping said that Huadian Science & Industry will treat sci-tech innovation bonds as a routine and tool-based financing method. It will also actively explore diversified innovative financing tools such as green bonds, increase “patient capital” input, and continuously strengthen the positive cycle of “Sci-Tech + Financing.”

“We will establish a closed-loop management system of ‘Sci-Tech Project Library—Financing Planning—Fund Allocation—Benefit Evaluation,’ ensuring that financing closely aligns with innovation needs. Meanwhile, the recognition of sci-tech innovation bonds by capital markets will serve as an external gauge of innovation effectiveness, driving improvements in innovation quality,” Peng said.

From an industry perspective, Peng believes that the vigorous development of the sci-tech innovation bond market has opened low-cost, long-term financing channels for energy technology companies, effectively alleviating the pain points of “difficult and expensive financing.” However, it also raises higher requirements for the “hard tech” quality and continuous innovation capability of enterprises. As an energy central enterprise sci-tech platform, Huadian Science & Industry will take proactive responsibility, exploring paths through its own practices, collaborating with financial institutions, universities, and industry chain companies to create innovation consortia, and providing integrated solutions of “technology + equipment + engineering + investment” to help build an industry ecosystem of “technology innovation + capital empowerment.”

The picture shows: Huadian Science & Industry’s自主研发新型复合隔膜、气体扩散层、质子交换膜等电解槽核心材料，实现自主研发与批量生产 (provided by interviewee)

Regarding the core development goals for the next 3 to 5 years, Peng Gangping clearly stated that the company will fully promote the construction of a world-class technological innovation platform enterprise, aiming to become a century-old leader. In innovation, strive to become a national-level original technology source in energy and power, achieving a leap from “following” and “catching up” to “leading” in 2-3 key fields; in industry leadership, promote 3-4 emerging industries to reach domestic leading and international advanced levels, cultivating “chain-leading” enterprises and hidden champions; in model output, foster listed companies as bond issuers, and increase financing innovations such as green and blue sci-tech innovation bonds.

“The implementation of sci-tech innovation bonds has injected strong capital momentum into us. In the future, we will stay true to our original aspiration of innovation, deepen energy technology research, and contribute Huadian’s strength to national energy security and the realization of the ‘dual carbon’ goals,” Peng Gangping said.

Editor: Wang Jing

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