Smart Finance Hong Kong Stock Morning Brief | International oil prices surge past $100 again, and the first "Hualong One" nuclear power unit in the Yangtze River Delta is connected to the grid and begins power generation

【Today’s Headlines】

UK Wind Power Zero Tariff Policy Implemented to Accelerate North Sea Offshore Wind Development

Starting April 1, the UK eliminated import tariffs on 33 wind turbine components, reducing the tariffs on core parts like blades and cables from 6% and 2% to 0%. This policy adjustment is a key move to speed up the construction of North Sea offshore wind projects and expand renewable energy capacity. According to related plans, the zero-tariff policy aims to unlock approximately £22 billion in investment.

Amid turbulence in Europe’s energy markets, Chinese wind power companies are quietly securing major contracts. Recently, Dajin Heavy Industries signed an agreement with Poland’s state-owned Szczecin Wulkan Shipyard to supply 40 sets of core foundation components for the Nordseecluster B offshore wind project in the North Sea, demonstrating the overseas expansion capabilities of domestic wind and offshore engineering firms.

Guosen Securities released a research report stating that domestic wind power new installations are expected to grow by 10%-20% in 2026, supported by strong order prices. Profit margins for main equipment are improving quarter by quarter, with increased exports boosting performance, creating a synchronized boom domestically and internationally. Components are expected to see “volume growth with stable prices” by 2026. Key focus areas include wind turbines, components, and leading offshore wind enterprises, such as Goldwind Technologies (02208), Dongfang Electric (01072), and Times Electric (03898), which leverage their advantages in rail transit technology to hold significant market share in wind power control systems, especially in offshore and high-power models.

【Market Outlook】

Nasdaq China Golden Dragon Index Falls 1.02%

Overnight, U.S. stocks closed with the Dow Jones Industrial Average down 739.42 points at 46,677.85, a decline of 1.56%; the S&P 500 fell 103.18 points to 6,672.62, down 1.52%; the Nasdaq Composite dropped 404.15 points to 22,311.98, a decrease of 1.78%.

Large tech stocks declined broadly, with Intel dropping over 5%, AMD, Micron Technology, and Tesla falling more than 3%. Banking stocks also declined, with Deutsche Bank down over 6%, Barclays nearly 6%, Morgan Stanley and Goldman Sachs down over 4%. Most popular Chinese concept stocks declined, with the Nasdaq China Golden Dragon Index down 1.02%. KE Holdings (房多多) surged over 16%, Xpeng Motors (小鹏汽车) up over 3%, Tencent Music up over 2%. Hang Seng Index ADRs declined, with the index closing at 25,603.31 points, down 113.45 points or 0.44% from Hong Kong’s close.

NYMEX WTI crude oil futures for the current month rose by $9.14 to $96.39 per barrel, up 10.48%. COMEX gold futures for the current month fell by $95.00, down 1.83%, to $5,084.1 per ounce.

【Hot Topics Preview】

Iran’s New Supreme Leader Makes First Statement, Oil Prices Surge Past $100 Again

According to CCTV News, on Thursday, Iran’s new Supreme Leader, Mujtaba Khamenei, issued a statement via national TV, saying Iran will continue strategic measures including blocking the Strait of Hormuz and attacking U.S. military bases in the Middle East. This marks his first public statement since succeeding after his father’s assassination. Following the news, international oil prices surged, with U.S. WTI crude reaching $96.39 per barrel, up over 10% intraday; Brent crude also rose over 10%, to $101.59 per barrel. Previously, oil prices had retreated after Trump indicated the war was nearing an end.

CITIC Securities: Subsidiary Under Investigation by Hong Kong Regulators and ICAC, Business Normal

CITIC Securities announced that it has noted recent media reports about its Hong Kong subsidiary being investigated by the Hong Kong Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC). Verification shows that on March 10, 2026, SFC and ICAC officers visited the subsidiary’s premises with search warrants and took some documents. An employee was questioned by ICAC. The company emphasizes its high regard for the matter and will continue to monitor developments. As of the disclosure date, the company and its Hong Kong subsidiary are operating normally, with all businesses ongoing. The company will fulfill its disclosure obligations according to listing rules.

Guotai Haitong (02611): Subsidiary Under Investigation by HK Regulators and ICAC, Business Unaffected

Guotai Haitong announced that recent media reports indicated its controlling subsidiary, Guotai Junan International, was under investigation by the Hong Kong SFC and ICAC. Verification confirms that on March 10, authorities visited with search warrants and took some documents; one employee was taken for cooperation. As of the disclosure date, operations are normal, and the incident is not expected to significantly impact the company’s production or business. The company will closely follow the situation and comply with disclosure requirements.

Largest Domestic AI Video Funding Round This Year

On March 12, AI video generation company AiShi Technology announced it completed a Series C funding of $300 million, led by CDH Hong Kong Fund, CDH VGC, and CDH Baifu. Nearly 20 investors, including China Ruyi and 37 Interactive Entertainment, participated.

Spring Farming Begins: Potash Fertilizer Companies Call for Stable Production and Supply

On March 12, China National Chemical Fertilizer Co., Ltd. issued a notice emphasizing the importance of ensuring fertilizer supply during the key spring planting season. To implement national policies on stabilizing fertilizer prices and supply, customers are urged not to speculate or hoard, and to maintain market stability. A staff member from China National Chemical Fertilizer (00297) stated the notice aims to encourage prompt delivery to end-users and regulate market order. Previously, several potash fertilizer companies announced their prices and sales volumes for social supervision.

First “Hualong One” Nuclear Power Unit in Yangtze River Delta Grid-Connected and Power Generation

The first “Hualong One” nuclear power unit in the Yangtze River Delta—CGN Zhejiang San’ao Nuclear Power Plant Unit 1—successfully connected to the grid, marking it’s ready to supply power. With the grid connection command issued, Unit 1 of the Zhejiang San’ao Nuclear Power Plant achieved its first power generation, taking a key step toward official operation. Involving CGN Power (01816).

GF Securities (01776): Plans to Increase Capital in GF Holdings by Up to HKD 6.101 Billion

GF Securities announced that GF Holdings Limited, its wholly owned subsidiary established in Hong Kong in June 2006 with paid-in capital of HKD 10.337 billion, plans to increase its capital in GF Hong Kong by no more than HKD 6.101 billion. The funds will come from the company’s general authorized placement of new H-shares and issuance of convertible bonds, as well as internal funds, to support business development.

China Biologic Products (01177): Positive Results in Phase III Clinical Trial of TQB3454 (IDH1 Inhibitor) for Cholangiocarcinoma

China Biologic announced that its subsidiary, Zhengda Tianqing Pharmaceutical Group, completed interim analysis of Phase III clinical trial of the innovative Class 1 drug TQB3454 (IDH1 inhibitor) for advanced cholangiocarcinoma with IDH1 mutation. The independent Data Monitoring Committee (DMC) found that the primary endpoints—progression-free survival (PFS) and overall survival (OS)—met the predefined efficacy thresholds. The company has communicated with the CDE regarding marketing approval and received written approval to submit an application soon. This is the world’s second and China’s first successful Phase III trial of an IDH1 inhibitor in cholangiocarcinoma.

Tencent (00700) Launches OpenClaw Security Toolbox

On March 12, Tencent launched the OpenClaw security toolbox to address security challenges posed by lobsters, providing safety guarantees for enterprises and users. For cloud-deployed developers and businesses, Tencent Cloud Lighthouse and ClawPro upgrade to support environment isolation and snapshot rollback; Tencent Cloud AI Agent Security Center can centrally manage cloud AI Agents, monitor abnormal commands, and scan for skill risks. For users deploying lobsters on personal computers, Tencent PC Manager 18.0 adds “Lobster Guardian - AI Security Sandbox” for isolated operation.

Weichai Power (02338) and China National Heavy Duty Truck Hydrogen Power Invest 589 Million RMB in Weichai New Energy Power Tech

According to Zhitong Finance, Weichai Power (02338) announced that on March 12, 2026, the company and China National Heavy Duty Truck Hydrogen Power (as existing shareholders) signed a capital increase agreement with Weichai New Energy Power Technology. The company and China National Heavy Duty Truck Hydrogen Power will each contribute RMB 412 million (about HKD 468 million) and RMB 177 million (about HKD 201 million), respectively, to increase registered capital and capital reserves of the target company.

United Federation Pharma (03933) Warns of Profit Drop to About HKD 2 Billion in 2025

Zhitong Finance reports that United Federation Pharma expects to record a profit of about HKD 2 billion in 2025, down from approximately HKD 2.658 billion in 2024. The decrease is mainly due to falling market prices of intermediates and raw materials, leading to a decline of about HKD 1.6 billion and HKD 400 million in respective segment profits. The formulation segment’s profit surged by about HKD 1.4 billion, mainly from licensing income of about HKD 1.3 billion from Novo Nordisk, partially offsetting the declines in intermediates and raw materials.

Long Resources (01712) Reports Annual Results, Net Profit Attributable to Shareholders Rises 367.85% to AUD 60.24 Million

Zhitong Finance states that Long Resources (01712) announced its FY2025 results, with revenue of AUD 144 million, up 97.47%; net profit attributable to shareholders of AUD 60.24 million, up 367.85%; earnings per share of 36.09 cents.

Youzan (08083): 2025 Net Profit About RMB 160 Million, Operating Cash Inflow About RMB 250 Million

On March 12, Youzan released its 2025 annual results. Revenue was approximately RMB 1.49 billion, up about 3%. Merchant solutions revenue was about RMB 710 million, up 9%. Average revenue per user (ARPU) increased to RMB 28,159, up 9%. Gross profit was about RMB 980 million, with a gross margin of 66%. Net profit was about RMB 160 million, turning profitable, with a net profit margin of about 11%. Operating cash inflow was about RMB 250 million. Cash balance was approximately RMB 1.1 billion.

【Stock Highlights】

Quzhi Group (00917) Reports 2025 Results, Parent Company’s Shareholders’ Profit About RMB 286 Million, Turns from Loss to Profit

Zhitong Finance reports that Quzhi Group (00917) announced FY2025 results, with revenue of about RMB 1.663 billion, up 24.2%; gross profit of about RMB 953 million, up 27.1%; net profit attributable to parent shareholders about RMB 286 million, turning from loss to profit; basic earnings per share of RMB 1.08.

Management noted that in 2025, despite multiple global challenges, the economy showed resilience, especially with rapid AI development and national consumption stimulus policies creating favorable external conditions. Continued investment in AI has given the company a competitive edge. R&D expenditure reached RMB 160 million, up 75%, reflecting focus on technological strength.

Segment-wise, marketing services revenue was RMB 1.402 billion, up 27.8%, with gross profit of RMB 875 million, up 28.8%. Goods sales revenue was RMB 194 million, up 5.2%. Other services contributed RMB 67 million, up 16.8%. Overall, innovation and R&D in AI marketing services drove sustained growth.