Core Viewpoint - 京能国际 is strategically transforming from a traditional asset-heavy model to a light asset operation model, focusing on high-quality development and innovation in response to national policies promoting clean energy [1][2][4] Financial Performance - Total assets reached 105.627 billion yuan, an increase of 3.1% from the beginning of the year [1] - Total installed capacity was 13.692 million kilowatts, up 8.3% year-to-date [1] - Operating revenue amounted to 4.086 billion yuan, reflecting a year-on-year increase of 24.9% [1] Industry Policy and Trends - National policies emphasize avoiding vicious competition and low-efficiency expansion in the clean energy sector, promoting a new path for high-quality development [1] - The "Zero Carbon Park Construction Notice" highlights the need for a shift from heavy asset development to lightweight operations, focusing on collaborative energy management [1] Strategic Focus - 京能国际 aims to become a professional manager of renewable energy assets, enhancing financial performance and shareholder returns through continuous securitization and value creation [2] - The company is focusing on three key tasks: innovating operational models, seizing opportunities in green electricity, and optimizing business layout to enhance risk resilience [2] Operational Efficiency - The company is implementing an efficiency revolution across four dimensions: production, marketing, finance, and management to improve operational quality [2] - Emphasis on safety management and cross-department collaboration to enhance operational efficiency and achieve high-quality electricity generation [2] Financial Innovation - 京能国际 is advancing financial innovation by promoting REITs and optimizing capital management to lower financial costs and enhance shareholder returns [3] - The company is exploring innovative financing models and strict cost control to improve operational efficiency [3] Cultural and Organizational Development - The company is fostering a culture of innovation and market-oriented mechanisms to stimulate organizational vitality and enhance core competitiveness [4] - 京能国际 plans to focus on long-term value creation and sustainable development through technological innovation and business model optimization in the second half of 2025 [4]

Core Viewpoint - The Chinese government has introduced a series of policies aimed at promoting high-quality development in the clean energy sector, steering away from excessive competition and resource monopolization [1][2]. Group 1: Policy Environment - The State-owned Assets Supervision and Administration Commission emphasizes abandoning the "resource king" mindset to avoid vicious competition [1]. - The National Energy Administration has outlined the "three no principles" in the 2024 Energy Work Guidance, which include no vicious competition, no resource monopolization, and no inefficient expansion [1]. - Multiple ministries have collaborated to standardize new energy subsidies, focusing on supporting technological and model innovations [1]. Group 2: Company Strategy - Jingneng International is adapting to policy directions by focusing on light asset operations to break through development bottlenecks and embark on a new journey of high-quality development [1]. - The company aims to transition from a traditional "investment, construction, and operation" model to a professional asset management approach, enhancing asset liquidity and turnover [2]. - Jingneng International is committed to becoming a professional manager of new energy assets, discovering value, and integrating the industry [2]. Group 3: Operational Focus - The company has identified three key tasks: innovating operational models, seizing opportunities in green electricity, and optimizing business layouts to enhance risk resistance [3]. - Jingneng International plans to leverage existing platforms and expand partnerships to create a multi-layered light asset operation system [3]. - The company is focusing on diversifying its energy portfolio by increasing investments in wind, gas, and hydropower while promoting offshore wind and green hydrogen development [3]. Group 4: Efficiency Revolution - Jingneng International is implementing an efficiency revolution by enhancing operational quality across production, marketing, finance, and management [4]. - The company is emphasizing safety management and cross-department collaboration to improve operational efficiency and achieve quality electricity generation [4]. - A professional marketing team is being developed to optimize trading strategies and maximize environmental rights value through green electricity trading [4]. Group 5: Financial Innovation - The company is advancing financial innovation by promoting REITs and optimizing capital management to lower financial costs and enhance shareholder returns [5]. - Jingneng International has issued the first public REITs for solar power and is expanding its asset portfolio to include hydropower [5]. - The company is focusing on cash flow and profitability to ensure sustainable financial health [5]. Group 6: Organizational Effectiveness - Jingneng International is enhancing organizational effectiveness through lean management and cost control measures [6]. - The company is exploring innovative payment models and expanding diverse revenue streams while strengthening financial training and process supervision [6]. - The efficiency revolution is driving the company towards a strategic transformation focused on quality improvement rather than mere scale growth [7]. Group 7: Innovation and Culture - Jingneng International is fostering a culture of innovation by integrating talent, wisdom, and business into a cohesive ecosystem [8]. - The company is establishing a market-oriented incentive system to encourage innovation and create a supportive environment for risk-taking [8]. - With a strong foundation in technology and management, Jingneng International is poised to achieve its vision of becoming a respected international clean energy investment operator [8].

Core Points - China Construction Bank Shanxi Branch has signed an asset transfer contract with China Great Wall Asset Management Shanxi Branch, transferring its rights to certain borrowers and guarantors [1] - The announcement requires listed borrowers and guarantors to fulfill their repayment obligations immediately to China Great Wall Asset Management [1] Group 1: Asset Transfer Details - The asset transfer involves the main and subordinate creditor rights and other related rights held by China Construction Bank Shanxi Branch [1] - The announcement specifies that if borrowers or guarantors undergo changes such as name changes, restructuring, or bankruptcy, the relevant parties must still fulfill their obligations [1] Group 2: Debt Announcement List - The debt announcement list includes specific borrowers, their principal amounts, interest, and guarantors, with the total principal amount for the listed borrowers being significant [2] - For example, Shanxi Fuyuan New Energy Co., Ltd. has a principal of approximately 52.58 million yuan and interest of about 21.13 million yuan [2] - The list also includes other companies with varying amounts of debt, indicating a diverse portfolio of borrowers [2][3]

Core Insights - Beijing Energy International (00686) reported a mid-year performance for 2025, with revenue reaching 4.086 billion, representing a year-on-year increase of 24.88% [1] - The profit attributable to equity holders surged to 173 million, marking a year-on-year growth of 424% [1] - Earnings per share stood at 7.87 cents [1] Revenue Growth Factors - The increase in revenue is attributed to: (i) the expansion of grid-connected installed capacity from approximately 10,045 megawatts as of June 30, 2024, to about 13,692 megawatts as of June 30, 2025, reflecting a growth of approximately 36.3% [1] - (ii) Effective operation and management of power stations contributed to the revenue increase [1]

Core Viewpoint - Beijing Energy International (00686) reported a significant increase in mid-year performance for 2025, with revenue reaching 4.086 billion yuan, representing a year-on-year growth of 24.88% [1] Financial Performance - The company's profit attributable to equity holders surged to 173 million yuan, marking a year-on-year increase of 424% [1] - Earnings per share stood at 0.0787 yuan [1] Revenue Drivers - The revenue growth is attributed to two main factors: 1. The expansion of grid-connected installed capacity from approximately 10,045 megawatts as of June 30, 2024, to about 13,692 megawatts as of June 30, 2025, reflecting an increase of approximately 36.3% [1] 2. Effective operation and management of power stations [1]

Core Insights - Beijing Energy International (00686.HK) reported revenue and EBITDA for the six months ending June 30, 2025, at approximately RMB 4,086 million and RMB 3,276 million, respectively, compared to RMB 3,272 million and RMB 2,686 million in the same period last year [1] Group 1 - The increase in revenue and EBITDA is attributed to the expansion of grid-connected installed capacity from approximately 10,045 MW as of June 30, 2024, to approximately 13,692 MW by June 30, 2025, representing a growth of about 36.3% [1] - Effective operation and management of power plants contributed to the financial performance [1] - The net profit slightly increased from approximately RMB 292 million in the previous year to about RMB 293 million in the current period [1]

[Report Overview](index=1&type=section&id=Interim%20Results%20Announcement) This report provides an overview of the Group's business operations, financial performance, future strategies, and detailed financial statements for the interim period [Business Review](index=1&type=section&id=Business%20Review) The Group is committed to becoming an international clean energy ecosystem investment operator, primarily engaged in the development, investment, operation, and management of power stations and other clean energy projects, achieving significant growth in installed capacity and power generation while reducing financing costs [Diversification of Investment Locations and Portfolio](index=1&type=section&id=Diversification%20of%20Investment%20Locations%20and%20Portfolio) The Group expanded its grid-connected installed capacity and diversified its clean energy portfolio across various regions, primarily in China Changes in Grid-Connected Installed Capacity (As of June 30, 2025) | Type | June 30, 2025 (Units) | December 31, 2024 (Units) | | :--- | :--- | :--- | | Solar Power Stations | 187 | 166 | | Wind Power Stations | 39 | 38 | | Hydro Power Stations | 26 | 26 | | Energy Storage Power Stations | 3 | 3 | - Total grid-connected installed capacity increased from approximately **12,639 MW** as of December 31, 2024, to approximately **13,692 MW** as of June 30, 2025[4](index=4&type=chunk) - Except for a few projects in Australia and Vietnam, the Group's remaining power stations are located in **28 different provinces in China**[4](index=4&type=chunk) [Other Clean Energy Projects](index=2&type=section&id=Other%20Clean%20Energy%20Projects) The Group holds significant hydro power development rights and plans to diversify its clean energy portfolio further - Holds hydro power development rights with an estimated capacity of approximately **5 GW**, awaiting preliminary work approval[6](index=6&type=chunk) - Will focus on developing solar, wind, hydro power, and energy storage businesses in the short term, enhancing the diversity of its clean energy portfolio[6](index=6&type=chunk) [Power Generation](index=2&type=section&id=Power%20Generation) The Group achieved substantial growth in total power generation, driven by increased installed capacity across its subsidiary and associate power stations Total Power Generation and Growth (For the six months ended June 30) | Metric | 2025 (MWh) | 2024 (MWh) | Growth Rate | | :--- | :--- | :--- | :--- | | Total Power Generation by Subsidiaries | 11,514,751 | 7,590,356 | 51.7% | | Total Power Generation by Associates | 1,088,710 | 651,831 | 67.0% | | Total Group Power Generation | 12,603,461 | 8,242,187 | 52.9% | Overview of Subsidiary Power Stations (For the six months ended June 30) | Type | 2025 Installed Capacity (MW) | 2025 Power Generation (MWh) | 2024 Installed Capacity (MW) | 2024 Power Generation (MWh) | | :--- | :--- | :--- | :--- | :--- | | Solar | 7,958 | 4,863,871 | 6,391 | 4,220,057 | | Wind | 4,432 | 5,177,066 | 2,602 | 1,874,559 | | Hydro | 952 | 1,348,606 | 952 | 1,495,740 | | Energy Storage | 350 | 125,208 | 100 | – | - Energy storage power stations officially commenced production and operation in the second half of 2024, generating **125,208 MWh** of electricity during this period[9](index=9&type=chunk) [Financing Activities](index=5&type=section&id=Financing%20Activities) The Group successfully reduced its weighted average interest rate and secured significant funding through perpetual medium-term notes and investment contracts - The weighted average annual interest rate for bank and other borrowings decreased from approximately **3.73%** as of December 31, 2024, to approximately **3.17%** for this period[11](index=11&type=chunk) - Completed the issuance of two tranches of perpetual medium-term notes, totaling **RMB 900 million** and **RMB 600 million**, with fixed distribution rates of **2.47%** and **2.38%**, respectively[11](index=11&type=chunk) - Secured funds of **RMB 1,500 million** (approximately **RMB 1,184 million** received) and **RMB 1,050 million** (approximately **RMB 442 million** received) through investment contracts with China Life Investment and Allianz Insurance, in the form of private placement perpetual medium-term notes, for working capital replenishment and loan repayment[12](index=12&type=chunk)[13](index=13&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) During this period, the Group's net profit slightly increased, while revenue and EBITDA significantly rose due to expanded installed capacity, with financing costs decreasing through debt structure optimization, but average electricity price declining due to a higher proportion of grid-parity projects, and accounts receivable and electricity price subsidy receivables substantially increasing, while the capital gearing ratio improved Key Financial Indicators (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Profit | 293 | 292 | 0.34% | | Revenue | 4,086 | 3,272 | 24.87% | | EBITDA | 3,276 | 2,686 | 21.97% | [Revenue and EBITDA](index=6&type=section&id=Revenue%20and%20EBITDA) Revenue and EBITDA saw significant growth driven by increased installed capacity, though average electricity prices declined due to grid-parity projects - Revenue and EBITDA growth primarily attributed to the expansion of grid-connected installed capacity from approximately **10,045 MW** to approximately **13,692 MW**, an increase of approximately **36.3%**[15](index=15&type=chunk) Average Electricity Price (Excluding VAT) | Metric | 2025 (RMB/kWh) | 2024 (RMB/kWh) | | :--- | :--- | :--- | | Average Electricity Price | 0.35 | 0.43 | - The decrease in average electricity price was mainly due to the continuous increase in grid-connected installed capacity of grid-parity solar and wind power projects, whose power generation accounted for a significantly higher proportion of total power generation, and these projects' electricity prices do not include subsidies[15](index=15&type=chunk) [Financing Costs](index=7&type=section&id=Financing%20Costs) Total financing costs decreased due to the refinancing of high-interest loans with lower-interest RMB loans Total Financing Costs (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Total Financing Costs | 1,099 | 1,105 | - The decrease in financing costs was primarily due to the gradual refinancing of certain high-interest loans with lower-interest RMB loans[16](index=16&type=chunk) [Income Tax Expense](index=7&type=section&id=Income%20Tax%20Expense) The Group's income tax expense is subject to China's statutory rate, with certain renewable energy projects benefiting from preferential tax reductions - The statutory corporate income tax rate in China is **25%**, with certain renewable energy projects enjoying preferential tax reductions[17](index=17&type=chunk) [Accounts Receivable, Bills, and Electricity Price Subsidy Receivables](index=7&type=section&id=Accounts%20Receivable%2C%20Bills%2C%20and%20Electricity%20Price%20Subsidy%20Receivables) Accounts receivable, bills, and electricity price subsidy receivables significantly increased, primarily due to central government subsidies for renewable energy projects Details of Accounts Receivable, Bills, and Electricity Price Subsidy Receivables | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Accounts Receivable and Bills | 881 | 590 | | Electricity Price Subsidy Receivables (China) | 9,645 | 7,465 | | Total | 10,526 | 8,055 | - Electricity price subsidy receivables primarily refer to central government subsidies for renewable energy projects, which will be settled according to government policies and the Ministry of Finance's payment model[18](index=18&type=chunk) [Bank and Other Borrowings](index=8&type=section&id=Bank%20and%20Other%20Borrowings) The Group's bank and other borrowings are diversified across currencies and maturities, with a significant portion denominated in RMB Maturity and Currency Mix of Bank and Other Borrowings (As of June 30, 2025) | Currency | Within One Year (RMB million) | Second Year (RMB million) | Three to Five Years (RMB million) | Six to Ten Years (RMB million) | After Ten Years (RMB million) | Total (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | RMB | 9,867 | 11,767 | 19,832 | 11,438 | 4,249 | 57,153 | | USD | 6,394 | 3,472 | – | – | – | 9,866 | | AUD | 1,890 | – | – | – | – | 1,890 | | HKD | 648 | – | – | – | – | 648 | | Total | 18,799 | 15,239 | 19,832 | 11,438 | 4,249 | 69,557 | [Key Performance Indicators](index=8&type=section&id=Key%20Performance%20Indicators) Key performance indicators show a decrease in EBITDA margin but improvements in debt-to-EBITDA ratio and interest coverage Changes in Key Performance Indicators (For the six months ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | EBITDA Margin | 80% | 82% | Down 2% | | Debt to EBITDA Ratio | 19.5 | 22.7 | Down 3.2 | | Operating Cash Flow to Net Debt Ratio | 3.5% | 2.7% | Up 0.8% | | Interest Coverage Ratio | 2.98 | 2.61 | Up 0.37 | - The decrease in EBITDA margin was mainly due to the continuous expansion of power generation business and additional operating expenses[21](index=21&type=chunk) [Liquidity, Financial Resources, Capital Gearing Ratio, and Capital Structure](index=9&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20Capital%20Gearing%20Ratio%2C%20and%20Capital%20Structure) The Group's capital gearing ratio improved due to increased equity from perpetual medium-term note issuance, while managing financial risks with derivative instruments Capital Structure and Capital Gearing Ratio | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Net Debt | 63,848 | 62,978 | | Total Equity | 25,460 | 22,660 | | Total Capital | 89,308 | 85,638 | | Capital Gearing Ratio | 71.5% | 73.5% | - The decrease in capital gearing ratio was mainly due to the increase in equity resulting from the issuance of perpetual medium-term notes[25](index=25&type=chunk) - The Group holds derivative financial instruments (cross-currency swaps) to hedge against foreign exchange and interest rate fluctuation risks of bank borrowings[23](index=23&type=chunk) [Other Operating Information](index=11&type=section&id=Other%20Operating%20Information) The Group had no significant acquisitions or disposals during this period but continues to seek investment opportunities, with its electricity sales business highly dependent on major customers, and employee count slightly increased, while hedging exchange rate and interest rate risks through cross-currency swaps and planning to issue asset-backed commercial papers post-period end [Significant Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=11&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%2C%20and%20Joint%20Ventures) The Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - No significant acquisitions or disposals occurred during this period[27](index=27&type=chunk) [Performance and Future Prospects of Significant Investments Held and Future Plans for Significant Investments or Capital Assets](index=11&type=section&id=Performance%20and%20Future%20Prospects%20of%20Significant%20Investments%20Held%20and%20Future%20Plans%20for%20Significant%20Investments%20or%20Capital%20Assets) The Group held no significant investments as of June 30, 2025, but actively seeks suitable opportunities to enhance future financial performance - As of June 30, 2025, the Group did not hold any significant investments[28](index=28&type=chunk) - Will actively seek suitable and promising investment opportunities to enhance future financial performance and profitability[28](index=28&type=chunk) [Significant Reliance on Major Customers](index=12&type=section&id=Significant%20Reliance%20on%20Major%20Customers) The Group's electricity sales business is heavily reliant on State Grid and Inner Mongolia Power, which account for a substantial portion of receivables - The primary customers for electricity sales business are subsidiaries of **State Grid** and **Inner Mongolia Power (Group) Co., Ltd.**[29](index=29&type=chunk) Proportion of Receivables from Major Customers (As of June 30, 2025) | Customer | Proportion of Total Accounts Receivable, Bills, and Electricity Price Subsidy Receivables | | :--- | :--- | | State Grid Subsidiaries | 74.5% | | Inner Mongolia Power Subsidiaries | 17.9% | [Pledge of Assets](index=12&type=section&id=Pledge%20of%20Assets) Approximately 30.5% of the Group's bank and other borrowings are secured by various assets, including power generation modules and equipment - Approximately **30.5%** of bank and other borrowings are secured by pledged power generation modules and equipment, guarantee deposits, electricity sales collection rights, and/or shares/equity of subsidiaries[30](index=30&type=chunk) [Employees and Remuneration Policy](index=12&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's full-time employee count slightly increased, with competitive remuneration and benefits provided Number of Full-time Employees and Employee Benefit Expenses | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 1,918 | 1,856 | | Employee Benefit Expenses (Excluding Share-based Payments) | RMB 279 million | RMB 251 million | [Exchange Rate Fluctuation Risk and Related Hedging](index=12&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group primarily operates in Mainland China and Hong Kong, with most transactions settled in RMB, HKD, and USD, leading to exchange rate fluctuation risk upon conversion - The Group primarily operates in Mainland China and Hong Kong, with most transactions settled in **RMB, HKD, and USD**, and exchange rate fluctuation risk mainly arises when converting to the presentation currency[32](index=32&type=chunk) [Contingent Liabilities](index=13&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no other significant contingent liabilities - As of June 30, 2025, the Group had no other significant contingent liabilities[33](index=33&type=chunk) [Significant Events After the Statement of Financial Position Date](index=13&type=section&id=Significant%20Events%20After%20the%20Statement%20of%20Financial%20Position%20Date) Post-period end, Jingneng Development plans to issue asset-backed commercial papers totaling approximately RMB 2,000 million through a trust contract - Jingneng Development entered into a trust contract with Industrial Bank International Trust, planning to issue asset-backed commercial papers with a total scale of approximately **RMB 2,000 million**[95](index=95&type=chunk) [Future Outlook](index=13&type=section&id=Future%20Outlook) As 2025 marks the final year of the '14th Five-Year Plan', the Company will align with the national 'dual carbon' strategy, shifting from a heavy asset-holding model to a hybrid asset operation development approach, focusing on low-cost project development and diversified business expansion, strengthening comprehensive cost control and risk resilience, and building a clean energy industrial ecosystem that is 'green-centric, multi-energy complementary, and intelligently coordinated' - Strategic Development: Shifting from a heavy asset-holding development approach to a hybrid asset operation development approach, prioritizing comprehensive project development costs and regional consumption capacity, and exploring light asset development and operation models[35](index=35&type=chunk) - Business Expansion: Deepening efforts in diversified business segments such as hydro power (Yunnan and Tibet), gas turbines (focusing on industrial parks with high heat loads or regions with high peak power demand), integrated energy (transitioning to light assets), and green hydrogen (tracking policy and technological advancements)[36](index=36&type=chunk) - Operational Management: Focusing on quality improvement and efficiency enhancement, implementing comprehensive cost control, post-project evaluation, improving regional benchmarking rankings, seizing opportunities in electricity spot trading, introducing equity financing, and continuously promoting overall management improvement[36](index=36&type=chunk) [Financial Statements](index=15&type=section&id=Financial%20Statements) This section includes the Group's unaudited condensed consolidated income statement, statement of comprehensive income, and statement of financial position for the six months ended June 30, 2025, reflecting operating results, financial performance, and asset and liability status for the period, showing growth in revenue and total comprehensive income, and changes in the asset and liability structure [Condensed Consolidated Interim Income Statement](index=15&type=section&id=Condensed%20Consolidated%20Interim%20Income%20Statement) The condensed consolidated interim income statement shows increased revenue, EBITDA, and profit for the period, with higher profit attributable to equity holders Summary of Condensed Consolidated Interim Income Statement (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Revenue | 4,086 | 3,272 | | EBITDA | 3,276 | 2,686 | | Profit Before Income Tax | 448 | 434 | | Profit for the Period | 293 | 292 | | Profit for the Period Attributable to Equity Holders of the Company | 173 | 33 | | Non-controlling Interests | 120 | 259 | | Basic and Diluted Earnings Per Share (RMB cents) | 7.87 | 1.48 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=17&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) The condensed consolidated interim statement of comprehensive income reflects profit for the period and other comprehensive income items, including currency translation differences Summary of Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Profit for the Period | 293 | 292 | | Currency Translation Differences | 195 | (134) | | Total Comprehensive Income for the Period | 488 | 158 | | Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | 368 | (101) | | Non-controlling Interests | 120 | 259 | [Condensed Consolidated Interim Statement of Financial Position](index=18&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) The condensed consolidated interim statement of financial position shows an increase in total assets and equity, with changes in non-current and current liabilities Summary of Condensed Consolidated Interim Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Non-current Assets | 86,046 | 85,867 | | Total Current Assets | 19,581 | 16,602 | | Total Assets | 105,627 | 102,469 | | Total Equity | 25,460 | 22,660 | | Total Non-current Liabilities | 53,652 | 50,833 | | Total Current Liabilities | 26,515 | 28,976 | | Total Liabilities | 80,167 | 79,809 | - Perpetual medium-term notes increased from **RMB 10,777 million** as of December 31, 2024, to **RMB 13,322 million** as of June 30, 2025, a significant factor in the growth of total equity[47](index=47&type=chunk) [Notes to the Financial Statements](index=20&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed notes to the condensed consolidated interim financial information, covering key information such as basis of preparation, changes in accounting policies, significant estimates, financial risk management, segment information, financing costs, income tax, accounts receivable, share capital, perpetual medium-term notes, bank borrowings, acquisitions, and post-balance sheet events, with a particular emphasis on significant uncertainties regarding going concern and mitigation measures [General Information](index=20&type=section&id=1%20General%20Information) The Company is primarily engaged in the development, investment, operation, and management of power stations and clean energy projects, with Beijing Energy Investment Group (Hong Kong) Co., Ltd. as its direct controlling shareholder - The Company is primarily engaged in the development, investment, operation, and management of power stations and other clean energy projects[48](index=48&type=chunk) - Beijing Energy Investment Group (Hong Kong) Co., Ltd. is the Company's direct controlling shareholder, holding approximately **32.14%** of the issued share capital[48](index=48&type=chunk) [Basis of Preparation](index=20&type=section&id=2%20Basis%20of%20Preparation) This section outlines the basis for preparing the financial statements, including considerations for going concern, changes in accounting policies, significant estimates, and financial risk management [Going Concern](index=20&type=section&id=2.1%20Going%20Concern) Despite current liabilities exceeding current assets and significant borrowings maturing, the Board has implemented measures to ensure the Group's ability to continue as a going concern - Current liabilities exceeded current assets by approximately **RMB 6,934 million**, with approximately **RMB 18,784 million** of borrowings maturing within the next 12 months, indicating significant uncertainty[51](index=51&type=chunk) - The Board has adopted several measures, including issuing perpetual medium-term notes, obtaining long-term borrowings, financial support from Jingneng Group, and operating cash inflows from existing power stations, to ensure going concern[52](index=52&type=chunk) [Changes in Accounting Policies and Disclosures](index=22&type=section&id=2.2%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The adoption of HKAS 21 (Amendment) 'Lack of Exchangeability' had no significant impact on the Group's financial position or performance - The adoption of HKAS 21 (Amendment) 'Lack of Exchangeability' had no significant impact on the Group's financial position and performance[55](index=55&type=chunk) [Significant Accounting Estimates and Assumptions](index=23&type=section&id=2.3%20Significant%20Accounting%20Estimates%20and%20Assumptions) Significant judgments, estimates, and assumptions made by management in preparing the financial information are consistent with those applied in the prior year's consolidated financial statements - Significant judgments, estimates, and assumptions made by management in preparing the financial information are consistent with those applied in the prior year's consolidated financial statements[57](index=57&type=chunk) [Financial Risk Management](index=23&type=section&id=2.4%20Financial%20Risk%20Management) The Group manages market risks, credit risks, and liquidity risks, utilizing cross-currency swaps to mitigate foreign exchange and interest rate fluctuations - The Group faces market risks (foreign exchange risk and cash flow interest rate risk), credit risk, and liquidity risk[58](index=58&type=chunk) - Cross-currency swaps are used to convert floating-rate foreign currency borrowings into fixed-rate RMB borrowings to reduce foreign exchange risk and cash flow interest rate risk[59](index=59&type=chunk) [Revenue and Segment Information](index=24&type=section&id=3%20Revenue%20and%20Segment%20Information) This section provides a breakdown of the Group's revenue and segment performance by business and geographical location, along with information on major customer contributions [Business Segments](index=25&type=section&id=3(a)%20Business%20Segments) The Group's business segments include solar, wind, and hydro power generation, with varying revenue and segment performance contributions Business Segment Revenue and Results (For the six months ended June 30) | Business Segment | 2025 Revenue (RMB million) | 2025 Segment Results (RMB million) | 2024 Revenue (RMB million) | 2024 Segment Results (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Solar Power Generation Business | 2,161 | 1,115 | 2,168 | 1,273 | | Wind Power Generation Business | 1,529 | 660 | 747 | 339 | | Hydro Power Generation Business | 330 | 130 | 357 | 150 | | Others | 66 | (359) | – | (267) | | Total | 4,086 | 1,546 | 3,272 | 1,495 | [Geographical Segments](index=27&type=section&id=3(b)%20Geographical%20Segments) The Group's revenue and non-current assets are primarily concentrated in China, with smaller contributions from Australia and Vietnam Revenue by Geographical Segment (For the six months ended June 30) | Region | 2025 Revenue (RMB million) | 2024 Revenue (RMB million) | | :--- | :--- | :--- | | China | 3,918 | 3,123 | | Australia | 146 | 130 | | Vietnam | 22 | 19 | | Total | 4,086 | 3,272 | Non-current Assets by Geographical Segment (As of June 30) | Region | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | China | 75,166 | 75,048 | | Australia | 7,321 | 6,841 | | Vietnam | 469 | 505 | | Hong Kong | 3 | 4 | | Total | 82,959 | 82,398 | [Information on Major Customers](index=28&type=section&id=3(c)%20Information%20on%20Major%20Customers) The Group's revenue is significantly contributed by a few major customers, with Customer A being the largest contributor Revenue Contribution from Major Customers (For the six months ended June 30) | Customer | 2025 Revenue (RMB million) | 2024 Revenue (RMB million) | | :--- | :--- | :--- | | Customer A | 2,833 | 2,165 | | Customer B | 513 | 388 | | Customer C | 315 | 336 | - Customer C's contribution to the Group's total revenue for the six months ended June 30, 2025, did not exceed **10%**[68](index=68&type=chunk) [Financing Costs](index=28&type=section&id=4%20Financing%20Costs) This section details the components of financing costs, including interest expenses on bank borrowings, loan financing fees, and lease liabilities Details of Financing Costs (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Interest Expense on Bank and Other Borrowings | 1,046 | 1,060 | | Loan Financing Fees for Bank and Other Borrowings | 20 | 19 | | Interest Expense on Lease Liabilities | 31 | 24 | | Interest Expense on Restoration Provisions | 2 | 2 | | Total | 1,099 | 1,105 | [Income Tax Expense](index=28&type=section&id=5%20Income%20Tax%20Expense) Income tax expense is based on China's statutory corporate income tax rate, with certain renewable energy projects enjoying preferential tax treatments - The statutory corporate income tax rate in China is **25%**, and certain subsidiaries involved in renewable energy projects have received preferential tax reductions[71](index=71&type=chunk) [Earnings Per Share Attributable to Equity Holders of the Company](index=29&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) This section presents the basic and diluted earnings per share, reflecting the profit attributable to equity holders of the Company [Basic](index=29&type=section&id=6(a)%20Basic) Basic earnings per share are calculated based on the profit attributable to equity holders and the weighted average number of ordinary shares outstanding Basic Earnings Per Share | Metric | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 7.87 | 1.48 | - The weighted average number of ordinary shares for the six months ended June 30, 2024, has been adjusted for the effect of the share consolidation effective November 1, 2024[74](index=74&type=chunk) [Diluted](index=30&type=section&id=6(b)%20Diluted) Diluted earnings per share are presented, with no assumed exercise of share options as their exercise price exceeded the average market price Diluted Earnings Per Share | Metric | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Diluted Earnings Per Share | 7.87 | 1.48 | - The exercise of share options was not assumed in calculating diluted earnings per share, as their exercise price was higher than the average market price of the shares[76](index=76&type=chunk) [Dividends](index=30&type=section&id=7%20Dividends) This section outlines the final dividends declared for previous years, noting that no interim dividends were paid or declared for the current period Final Dividend Distribution (For the six months ended June 30) | Dividend Year | Dividend Per Ordinary Share | Total Amount (RMB million) | | :--- | :--- | :--- | | 2024 Final Dividend | 1.00 HK cents (approx. RMB 0.90 cents) | 193 | | 2023 Final Dividend | 1.00 HK cents (approx. RMB 0.90 cents) | 196 | - During this period, the Company did not pay or declare any interim dividends[78](index=78&type=chunk) [Accounts Receivable, Bills, and Electricity Price Subsidy Receivables](index=31&type=section&id=Accounts%20Receivable%2C%20Bills%2C%20and%20Electricity%20Price%20Subsidy%20Receivables) This section provides an aging analysis of accounts receivable, bills, and electricity price subsidy receivables, primarily related to central government subsidies for renewable energy projects Aging Analysis of Accounts Receivable and Electricity Price Subsidy Receivables (By Invoice Date) | Aging | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Unbilled | 10,460 | 8,002 | | Within One Year | 61 | 45 | | One to Two Years | 3 | 1 | | Two to Three Years | 2 | – | | Over Three Years | – | 4 | | Total | 10,526 | 8,052 | - Electricity price subsidy receivables primarily refer to central government subsidies for renewable energy projects, and management considers the impairment provision to be adequate[79](index=79&type=chunk)[80](index=80&type=chunk) [Share Capital](index=32&type=section&id=9%20Share%20Capital) This section details the Company's authorized and issued share capital, including the impact of a share consolidation effective November 1, 2024 Authorized and Issued Share Capital (As of June 30) | Metric | Number of Shares (million shares) | Amount (RMB million) | | :--- | :--- | :--- | | Authorized Share Capital (HKD 1.00 par value per share) | 3,000 | 2,525 | | Issued and Fully Paid Share Capital (HKD 1.00 par value per share) | 2,234 | 1,915 | - The share consolidation effective November 1, 2024, combined every **10 shares** with a par value of **HKD 0.10** into **1 share** with a par value of **HKD 1.00**[86](index=86&type=chunk) [Perpetual Medium-Term Notes](index=33&type=section&id=10%20Perpetual%20Medium-Term%20Notes) This section outlines the changes in perpetual medium-term notes, including new issuances and distributions to noteholders, significantly contributing to equity growth Changes in Perpetual Medium-Term Notes (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | As at January 1 | 10,777 | 3,494 | | Issuance of Perpetual Medium-Term Notes | 2,550 | 7,300 | | Profit Attributable to Perpetual Medium-Term Note Holders | 87 | 145 | | Distributions to Perpetual Medium-Term Note Holders | (87) | (145) | | As at End of Period | 13,322 | 10,777 | - Two tranches of perpetual medium-term notes were issued during this period, with a total principal of **RMB 1,500 million** and distribution rates of **2.47%** and **2.38%**, respectively[85](index=85&type=chunk) - Private placement perpetual medium-term notes secured a total of **RMB 1,050 million** at a fixed distribution rate of **3.30%** per annum[87](index=87&type=chunk) [Bank and Other Borrowings](index=34&type=section&id=11%20Bank%20and%20Other%20Borrowings) This section provides a breakdown of bank and other borrowings into non-current and current portions, along with their weighted average interest rate and maturity Total Bank and Other Borrowings | Type | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Non-current | 50,758 | 47,936 | | Current | 18,784 | 20,646 | | Total | 69,542 | 68,582 | - Weighted average annual interest rate of approximately **3.17%** (December 31, 2024: approximately **3.73%**), with a weighted average maturity of approximately **5.45 years** (December 31, 2024: approximately **5.67 years**)[90](index=90&type=chunk) [Convertible Bonds](index=35&type=section&id=12%20Convertible%20Bonds) The three-year convertible bonds were fully redeemed during the six months ended June 30, 2024 - The three-year convertible bonds were fully redeemed during the six months ended June 30, 2024[91](index=91&type=chunk) [Acquisition of Subsidiaries](index=35&type=section&id=13%20Acquisition%20of%20Subsidiaries) No business combinations or asset acquisitions occurred during the current period - No business combinations or asset acquisitions occurred during this period[93](index=93&type=chunk)[94](index=94&type=chunk) [Events After the Statement of Financial Position Date](index=35&type=section&id=14%20Events%20After%20the%20Statement%20of%20Financial%20Position%20Date) Post-period end, Jingneng Development plans to issue asset-backed commercial papers totaling approximately RMB 2,000 million through a trust contract - Jingneng Development entered into a trust contract with Industrial Bank International Trust, planning to issue asset-backed commercial papers with a total scale of approximately **RMB 2,000 million**[95](index=95&type=chunk) [Comparative Figures](index=35&type=section&id=15%20Comparative%20Figures) Certain comparative figures have been restated to conform to the presentation for the current period - Certain comparative figures have been restated to conform to the presentation for this period[96](index=96&type=chunk) [Other Information](index=36&type=section&id=Other%20Information) This section covers the purchase, sale, or redemption of the Company's listed securities, compliance with the Corporate Governance Code, adherence to the Model Code for Securities Transactions by Directors, and the composition of the Audit Committee and declaration of interim dividends, demonstrating the Company's commitment to maintaining high standards of corporate governance [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period, with 34.5 million treasury shares held - During this period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[97](index=97&type=chunk) - As of June 30, 2025, the Company held **34,500,000 treasury shares**[97](index=97&type=chunk) [Compliance with the Corporate Governance Code](index=36&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules during the period - The Company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules during this period[98](index=98&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=36&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) All Directors confirmed their compliance with the required standards of the Model Code and their own code for securities transactions during the period - All Directors confirmed their continuous compliance with the required standards set out in the Model Code and their own code during this period[99](index=99&type=chunk) [Audit Committee](index=36&type=section&id=Audit%20Committee) The Audit Committee, comprising Mr. Liu Jingwei (Chairman), Mr. Zhu Jianbiao, and Mr. Liu Guoxi, reviewed the Group's unaudited condensed consolidated interim results - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for this period[100](index=100&type=chunk) - The Audit Committee comprises Mr. Liu Jingwei (Chairman), Mr. Zhu Jianbiao (Independent Non-executive Director), and Mr. Liu Guoxi (Non-executive Director)[100](index=100&type=chunk) [Interim Dividends](index=36&type=section&id=Interim%20Dividends) The Board did not declare any interim dividends for the current period - The Board did not declare any interim dividends for this period[101](index=101&type=chunk) [Acknowledgements](index=37&type=section&id=Acknowledgements) The Board extends its sincere gratitude to all stakeholders for their contributions to the Group during the period - The Board extends its sincere gratitude to all stakeholders for their contributions to the Group during this period[102](index=102&type=chunk)

Group 1 - The company plans to launch an asset-backed special plan, with the issuance of asset-backed securities expected on the Shanghai Stock Exchange by November 2025 or a later date [1] - The purpose of the asset-backed securities issuance is to invest in and securitize the underlying assets held by its subsidiary, Beijing Energy Development, and to raise funds for the company's operations and business development [1] - The company will appoint a project manager for the asset-backed special plan, with Beijing Energy Development acting as the seller and original equity holder [1] Group 2 - The company intends to enter into equity transfer contracts for the sale of shares in three companies: Xinyou, Youyu, and Liu'an, with expected cash consideration of not less than RMB 137 million, RMB 344 million, and RMB 163 million respectively [1] - The board believes that the proposed issuance of asset-backed securities will enhance asset utilization, improve overall asset turnover, and increase the company's working capital [1] - This initiative is also expected to lower financial costs and enhance the company's investment and financing capabilities [1]

Group 1 - The company, Beijing Energy International, plans to launch an asset-backed special plan, with the issuance of asset-backed securities expected on the Shanghai Stock Exchange by November 2025 or a later date to be determined [1] - The purpose of the asset-backed securities is to invest in the underlying assets held by its subsidiary, Jingneng Development, and to raise funds for the operation and development of the group's business [1] - The company will appoint a project manager for the asset-backed special plan, and Jingneng Development will conditionally agree to transfer the entire equity of Xinyou, Youyu, and Liu'an to the asset-backed special plan for cash consideration of no less than RMB 137 million, RMB 344 million, and RMB 163 million respectively [1] Group 2 - The board believes that the proposed issuance of asset-backed securities will enhance asset utilization, improve overall asset turnover, and increase the company's overall working capital [1] - This initiative is also expected to help reduce financial costs and enhance the company's investment and financing capabilities [1]

Group 1 - The company, Beijing Energy International, plans to launch an asset-backed special plan, with the issuance of asset-backed securities expected on the Shanghai Stock Exchange by November 2025 or a later date [1] - The purpose of the asset-backed securities issuance is to invest in and securitize the underlying assets held by its subsidiary, Jingneng Development, and to raise funds for the operation and development of the group [1] - The company will appoint a project manager for the asset-backed special plan, which will involve the transfer of equity contracts for the subsidiaries Xinyou, Youyu, and Liu'an at cash prices of not less than RMB 137.49 million, RMB 344.09 million, and RMB 162.63 million respectively [1]