Group 1: Hydropower Performance - In the first half of the year, hydropower generation was significantly affected, with a cumulative output of 3.842 billion kWh, a year-on-year decrease due to low water levels and insufficient rainfall [2] - The hydropower sector is expected to enter the flood season after February, but the company cannot accurately predict the annual water situation [2] Group 2: Thermal Power Generation - Thermal power generation saw a substantial increase, with a cumulative output of 1.504 billion kWh, representing a year-on-year growth of 77.14% [2] - The company anticipates that thermal power generation will continue to maintain high growth rates throughout the year [2] Group 3: Market Transactions and Pricing - In 2018, the company’s cumulative direct trading volume was 5.194 billion kWh, accounting for 25.79% of the total annual generation of 20.143 billion kWh [3] - The market transaction volume is expected to see significant growth in 2019 due to new thermal power installations [3] Group 4: Future Installations - Future hydropower projects include Jiangpinghe Hydropower Station (450,000 kW), Linxi River Hydropower Station (175,200 kW), and Xiakoutang Hydropower Station (58,000 kW) [3] - The company plans to add two thermal power units in Yingkou, totaling 1,000,000 kW [3] Group 5: Coal Supply and Costs - The Menghua Railway, as the longest coal transportation line in China, will improve coal supply channels for Hubei and surrounding provinces, benefiting local coal-fired power plants [3] - The impact of coal price reductions on thermal power generation costs remains uncertain due to various influencing factors [3]

Group 1: Company Operations - The coal storage and distribution base in Jingzhou, Hubei, is designed to connect with the Menghua Railway, facilitating coal supply to Hubei, Jiangxi, Hunan, and Anhui provinces [2] - The construction of the Jingzhou coal storage base is synchronized with the Menghua Railway project, which is expected to lower procurement costs for the company once completed [2] - The company’s coal procurement mainly comes from Shanxi, Shaanxi, Anhui, and Henan provinces, with long-term contracts accounting for over 70% of the procurement [2] Group 2: Power Trading - Direct electricity trading in Hubei province is set to fully commence in June 2019, currently in the training phase [2] - The company is preparing for the direct electricity trading, which is anticipated to enhance operational efficiency [2]

Group 1: Hydropower Generation - The company's hydropower generation volume from January to May 2019 decreased by 37.56% year-on-year, primarily due to lower water levels and reduced rainfall compared to the previous year [2]. Group 2: Project Updates - The construction of the Ezhou Power Plant Phase III is not yet completed, and the final settlement is pending [2]. - The company is making progress on the construction of the Jingzhou coal-water intermodal transport base, with the first phase proceeding smoothly [3]. Group 3: Coal Procurement and Transportation - The opening of the Menghua Railway is expected to alleviate transportation pressure for coal from the north to the south, increasing procurement channels for the company [2]. - The impact of the Menghua Railway on coal procurement prices will depend on the sales strategies of coal suppliers and railway transportation costs [2]. Group 4: Market Electricity Trading - The company is preparing for market electricity trading in 2019, with an expected significant increase in trading volume compared to 2018, while keeping the overall discount level reasonable [3]. Group 5: Natural Gas Business - The company's natural gas pipeline transportation business has been growing rapidly due to the continuous increase in gas consumption in Hubei Province, with profitability expected to improve further in 2019 [3].

Group 1: Hydropower Revenue and Forecast - The company's hydropower revenue is primarily dependent on the annual water inflow in the Qingjiang River basin, which is difficult to predict accurately due to its smaller area compared to the Yangtze River [2] - The company collaborates with meteorological departments to assist in forecasting water inflow, but predictions remain uncertain until the third quarter of each year [2] - There is currently no risk of shutdowns for the company's hydropower stations due to environmental policies [2] Group 2: Coal Procurement and Pricing - The company sources coal mainly from Henan, Shaanxi, Shanxi, and Anhui, with long-term contracts accounting for approximately 60% of procurement [3] - There is no import coal procurement, and coal prices have seen a slight decrease month-on-month as of January [3] Group 3: Power Generation and Market Dynamics - The available hours for thermal power generation in Hubei are influenced by electricity demand and hydropower output, prioritizing hydropower generation before planning thermal power [3] - The market trading price for electricity in Hubei is relatively low compared to regions like Henan and Guangzhou [3] Group 4: Future Development in Renewable Energy - The company is actively developing wind and solar projects, but faces increasing challenges due to industry and environmental policies, leading to a focus on acquisitions and mergers as primary growth strategies [3]