京能清洁能源(00579) - 2025 - 中期业绩

Financial Summary Performance Summary For the six months ended June 30, 2025, revenue grew by 2.91% year-on-year, but profit before tax and profit attributable to equity holders declined, with basic and diluted earnings per share at RMB 24.05 cents Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,899.7 | 10,591.4 | +2.91 | | Profit Before Tax | 2,515.8 | 2,615.2 | -3.80 | | Profit Attributable to Equity Holders of the Company | 1,982.7 | 2,086.7 | -4.98 | | Basic and Diluted Earnings Per Share | 24.05 cents | 25.31 cents | -4.98 | Unaudited Consolidated Financial Statements Unaudited Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, revenue increased to RMB 10,899.7 million, but operating profit and profit for the period decreased year-on-year due to lower other income and a shift from other gains to losses Key Data from Unaudited Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 10,899,657 | 10,591,388 | | Other income | 149,231 | 222,153 | | Operating profit | 3,047,642 | 3,122,642 | | Profit before tax | 2,515,799 | 2,615,236 | | Profit for the period | 2,070,587 | 2,187,033 | | Profit for the period attributable to equity holders of the Company | 1,982,660 | 2,086,711 | Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, total comprehensive income was RMB 2,087.7 million, slightly below the prior year, positively impacted by a shift in foreign exchange differences but negatively affected by increased fair value losses on cash flow hedges Key Data from Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 2,070,587 | 2,187,033 | | Exchange differences on translation of foreign operations | 19,964 | (76,144) | | Cash flow hedges: fair value loss for the period | (4,073) | (14,836) | | Total comprehensive income for the period | 2,087,700 | 2,104,466 | | Total comprehensive income for the period attributable to equity holders of the Company | 1,988,428 | 2,004,144 | Unaudited Consolidated Statement of Financial Position As of June 30, 2025, both total assets and liabilities grew, with increases in property, plant and equipment, and significant rises in bank borrowings and short-term financing bills, leading to an improved net current liability position Key Data from Unaudited Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 77,538,221 | 76,988,205 | | Total current assets | 26,410,007 | 24,065,236 | | Total current liabilities | 29,929,891 | 28,114,771 | | Net current liabilities | (3,519,884) | (4,049,535) | | Net assets | 38,346,081 | 37,482,775 | | Total equity | 38,346,081 | 37,482,775 | Notes to the Unaudited Interim Financial Report General and Basis of Presentation This interim financial report is prepared on a going concern basis despite net current liabilities, as directors believe the Group can meet its obligations, and is presented in RMB in accordance with IAS 34 - As of June 30, 2025, the Group had net current liabilities of RMB 3,519,884,000, but the Board of Directors is confident in the Group's ability to continue as a going concern[11] - The interim financial report is presented in RMB and prepared in accordance with International Accounting Standard 34[11][12] Principal Accounting Policies The interim financial report is prepared primarily on a historical cost basis, with the first-time application of amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," which had no material impact on financial performance - This interim financial report is primarily prepared on a historical cost basis, with certain financial instruments measured at fair value[13] - The Group applied the amendments to IAS 21 for the first time, which had no material impact on its financial performance and position[14] Revenue For the six months ended June 30, 2025, total revenue was RMB 10,899.7 million, primarily from contracts with customers, with sales of electricity and heat being the main components, recognized mostly at a point in time and dominated by the Mainland China market Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 10,874,248 | 10,563,318 | | Leases | 25,409 | 28,070 | | Total Revenue | 10,899,657 | 10,591,388 | Breakdown of Revenue from Contracts with Customers (H1 2025) | Type of Goods and Services | Gas-fired Power and Heat (RMB thousand) | Wind Power (RMB thousand) | Photovoltaic Power (RMB thousand) | Hydropower (RMB thousand) | Others (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sale of electricity | 5,306,485 | 2,683,464 | 1,535,364 | 70,922 | – | 9,596,235 | | Sale of heat | 1,274,656 | – | – | – | – | 1,274,656 | | Repair, maintenance and other services | – | – | – | – | 3,357 | 3,357 | | Revenue from contracts with customers | 6,581,141 | 2,683,464 | 1,535,364 | 70,922 | 3,357 | 10,874,248 | - Effective January 1, 2024, subsidies for gas-fired power generation have been reclassified to electricity sales revenue[20] Segment Information The Group is managed and reports based on its main business segments, including gas-fired power and heat, wind power, photovoltaic power, and hydropower, with all segments except hydropower showing revenue growth in H1 2025 Reportable Segment Revenue and Results (H1 2025) | Segment | Revenue from External Customers (RMB thousand) | Reportable Segment Results (RMB thousand) | | :--- | :--- | :--- | | Gas-fired power and heat | 6,581,141 | 996,227 | | Wind power | 2,683,464 | 1,498,942 | | Photovoltaic power | 1,535,364 | 822,988 | | Hydropower | 70,922 | (22,210) | | Others | 28,766 | (248,305) | | Total | 10,899,657 | 3,047,642 | Reportable Segment Revenue and Results (H1 2024) | Segment | Revenue from External Customers (RMB thousand) | Reportable Segment Results (RMB thousand) | | :--- | :--- | :--- | | Gas-fired power and heat | 6,449,227 | 899,699 | | Wind power | 2,457,115 | 1,384,663 | | Photovoltaic power | 1,513,994 | 720,457 | | Hydropower | 141,213 | 273,167 | | Others | 29,839 | (155,344) | | Total | 10,591,388 | 3,122,642 | Other Income For the six months ended June 30, 2025, other income decreased by 32.85% year-on-year to RMB 149.2 million, primarily due to a significant drop in carbon emission rights income, despite an increase in VAT refunds or exemptions Other Income Composition (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants and subsidies for clean energy production | 12,813 | 12,179 | | Government grants and subsidies for asset construction | 10,672 | 9,997 | | Income from carbon emission rights | 13,150 | 72,864 | | VAT refund or exemption | 75,801 | 73,286 | | Others | 36,795 | 53,827 | | Total | 149,231 | 222,153 | - Income from carbon emission rights is mainly derived from the sale of carbon credits registered in regulated trading systems in Australia and China[29] - The Group benefits from a 50% VAT refund on wind farm sales revenue and a full VAT exemption on residential heat sales revenue[29] Other Gains and Losses For the six months ended June 30, 2025, the company shifted from other gains of RMB 340.6 million in the prior year to other losses of RMB 11.0 million, mainly due to fair value losses from the declining share price of CGN Power and compensation received for a hydropower station shutdown in the prior year Other Gains and Losses Composition (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss on disposal of property, plant and equipment | (3,522) | (988) | | Net foreign exchange gain/(loss) | 26,156 | (11,217) | | (Loss)/gain arising on changes in fair value of financial assets at FVTPL | (18,747) | 177,376 | | Others | (14,840) | 175,379 | | Total | (10,953) | 340,550 | - In H1 2025, other losses were primarily due to fair value losses from the decline in CGN Power's share price[73] - In H1 2024, other gains mainly included compensation for a hydropower station shutdown and fair value gains from the rise in CGN Power's share price[73] Interest Income / Finance Costs For the six months ended June 30, 2025, interest income decreased year-on-year while total finance costs slightly increased, mainly due to the expensing of interest as more project companies commenced operations Interest Income and Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 21,790 | 31,452 | | Interest expense | 654,753 | 684,344 | | Less: Amount capitalised in property, plant and equipment | (42,792) | (85,093) | | Total finance costs | 611,961 | 599,251 | - The increase in finance costs was mainly due to the expensing of interest expenses as more project companies commenced operations with increased installed capacity[80] Income Tax Expense For the six months ended June 30, 2025, income tax expense increased by 3.97% year-on-year to RMB 445.2 million, calculated mainly at the 25% China EIT rate, with some enterprises in western regions benefiting from a preferential 15% rate and "three-free, three-half" policies Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax: China Enterprise Income Tax | 445,052 | 396,732 | | Deferred tax: Current period | 160 | 31,471 | | Income tax expense | 445,212 | 428,203 | - Enterprises in encouraged industries in Western China benefit from a preferential 15% tax rate and a "three-free, three-half" EIT holiday, which applies to some of the Group's wind and photovoltaic projects[31] - Australian profits tax is calculated at 30% of the estimated assessable profit[33] Profit for the Period For the six months ended June 30, 2025, profit for the period was RMB 2,070.6 million, a year-on-year decrease of 5.32%, after deducting total depreciation and amortization of RMB 1,863.4 million Items Deducted from Profit for the Period (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 1,293 | 2,003 | | Operating lease payments for land and buildings | 31,754 | 24,094 | | Total depreciation and amortization | 1,863,422 | 2,034,760 | Dividends The company approved a final ordinary dividend of RMB 14.30 cents per share for 2024, totaling RMB 1,178.964 million, on June 18, 2025, and the Board does not recommend an interim dividend for H1 2025 - A final ordinary dividend for 2024 of RMB 14.30 cents per share (tax inclusive), totaling RMB 1,178,964,000, was approved on June 18, 2025[37] - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[37] Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 24.05 cents, down from RMB 25.31 cents in the prior year, based on the profit attributable to ordinary equity holders and the number of shares in issue Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 24.05 | 25.31 | - The decrease in basic earnings per share was mainly due to the decline in profit attributable to ordinary equity holders from RMB 2,086,711,000 to RMB 1,982,660,000, while the number of shares in issue remained unchanged[36] - There is no difference between basic and diluted earnings per share as there were no potential dilutive shares outstanding[36] Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables increased to RMB 15,971.8 million from year-end 2024, driven by receivables for clean energy tariff surcharges, with major customers being state-owned grid companies in China and an average credit period of 60 days Trade and Bills Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables - goods and services | 2,422,714 | 2,857,184 | | Trade receivables - clean energy tariff surcharge | 13,590,316 | 11,197,931 | | Bills receivable | 1,450 | 4,481 | | Less: Allowance for credit losses | (42,690) | (42,690) | | Total | 15,971,790 | 14,016,906 | Aging Analysis of Trade and Bills Receivables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 3,722,086 | 2,957,793 | | 61 to 365 days | 3,128,547 | 2,506,582 | | 1 to 2 years | 3,322,067 | 3,211,951 | | 2 to 3 years | 2,351,135 | 2,396,370 | | Over 3 years | 3,447,955 | 2,944,210 | | Total | 15,971,790 | 14,016,906 | Trade and Other Payables As of June 30, 2025, total trade and other payables slightly decreased to RMB 6,528.2 million from year-end 2024, with a notable reduction in payables for the acquisition of property, plant and equipment, while trade payables and retention money payable increased Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 2,644,666 | 2,467,597 | | Payables for acquisition of property, plant and equipment | 2,228,166 | 3,206,406 | | Retention money payable | 730,658 | 312,321 | | Bills payable | 60,000 | 50,000 | | Salaries and employee benefits | 122,360 | 122,671 | | Non-income taxes payable | 143,380 | 270,529 | | Others | 598,936 | 354,593 | | Total | 6,528,166 | 6,784,117 | Aging Analysis of Trade and Bills Payables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 789,502 | 1,792,715 | | 31 to 365 days | 1,364,215 | 322,290 | | 1 to 2 years | 469,716 | 380,124 | | 2 to 3 years | 60,738 | 22,298 | | Over 3 years | 20,495 | 170 | | Total | 2,704,666 | 2,517,597 | Power Industry Overview Power Industry Overview In H1 2025, China's power system operated stably with a 3.7% rise in electricity consumption, while non-fossil fuel generation capacity reached 60.9% of the total, though equipment utilization hours generally declined due to the rapid expansion of wind and solar capacity - In H1 2025, China's total electricity consumption was 4.8 trillion kWh, a year-on-year increase of 3.7%[42] - As of H1 2025, national power generation installed capacity reached 3.65 billion kW, up 18.7% YoY, with non-fossil fuel capacity at 2.22 billion kW, accounting for 60.9% of the total[42] - Wind and photovoltaic power accounted for 89.9% of the total new installed capacity, with a combined addition of 260 million kW[42] - The average utilization hours of power generation equipment of 6,000 kW and above decreased by 100 hours YoY, with declines in gas, wind, and solar, linked to rapid capacity growth[43] Business Review Operating scale steadily increased, with resilience in the gas-fired power generation segment In H1 2025, the Group's total assets grew by 2.9% to RMB 103.95 billion and total operating revenue increased by 2.9% to RMB 10.90 billion, with the gas-fired power and heat segment demonstrating stable performance and utilization hours above the national average - As of June 30, 2025, total assets reached RMB 103.95 billion, a 2.9% increase from the beginning of the year[45] - Total operating revenue was RMB 10.90 billion, a year-on-year increase of 2.9%[45] - The gas-fired power and heat segment generated 9.72 billion kWh, up 2.3% YoY, with equipment utilization of approximately 2,036 hours, exceeding the national average[45] - Beijing Jingneng Gaoantun Gas-fired Cogeneration Co, Ltd's power generation grew by 19%, and Beijing Shangzhuang Gas-fired Cogeneration Co, Ltd's profit increased by 26.9%[45] Installed capacity continued to expand, power generation grew steadily, and unit operating efficiency was continuously optimized As of June 30, 2025, the Group's total installed capacity rose by 21.4% to 17.914 million kW, with non-fossil fuels accounting for 73.3%, while total power generation grew by 8.8% to 21.87 billion kWh, driven by significant growth in wind and solar power whose utilization hours surpassed national averages - As of June 30, 2025, total installed capacity increased to 17.914 million kW, a 21.4% year-on-year growth[46] - Non-fossil fuel installed capacity reached 13.139 million kW, accounting for 73.3% of the total[46] - Total power generation in H1 was 21.87 billion kWh, an 8.8% increase year-on-year[46] - The wind power segment generated 8.49 billion kWh, up 18.9%, with utilization hours of 1,240, which is 153 hours above the national average[46] - The photovoltaic power segment generated 3.36 billion kWh, up 17.4%, with utilization hours of 680, which is 120 hours above the national average[46] New progress in strategic emerging projects, with steady advancement in project development The Group actively responded to new energy market reforms, securing 540,000 kW of new approvals or development quotas in H1 and maintaining a project pipeline exceeding 10 million kW, while achieving substantial progress on key strategic projects - In the reporting period, the Group secured 540,000 kW of new approvals or renewable energy development quotas, with a project pipeline exceeding 10 million kW[47] - Construction began on the first 1.5 million kW phase of the 4.9 million kW Xilingol League windbreak and sand fixation project, with 100,000 kW fully connected to the grid in H1[48] - The Shantou offshore wind power project's submarine cable route plan was approved, and resource surveys for the Chengde green power to Beijing project were completed[48] - The Group received approval for the layout optimization of the Mentougou pumped storage project and signed a cooperation agreement for the Hulunbuir-Xing'an League green power to Beijing project[48] Digital and intelligent empowerment drives innovation, building new quality productive forces in green energy The Group enhanced production and management efficiency through technological innovation, such as optimizing unit control strategies and introducing drone inspections, and digital transformation, centered on a "Smart Energy Management Platform" - Unit generation capacity and reliability were improved through refined power curve verification, blade extensions, and preventive generator replacements[50] - The innovative introduction of a drone intelligent inspection system enhanced equipment monitoring efficiency and reduced unplanned downtime[50] - A comprehensive digital ecosystem was built around the "Smart Energy Management Platform," covering intelligent waste heat utilization, power marketing control, distributed PV O&M, and AI-enabled safety production[51] - The Jingqiao Thermal Power waste heat project reduced heat network losses by 6%, and the distributed PV intelligent O&M platform shortened fault location time by 80%[51] In-depth research on marketing strategies to actively respond to power market reforms The Group closely monitored power market reforms, developed a sensitivity analysis model to enhance price-volume analysis, actively pursued high-value transactions like inter-provincial trading, and pioneered new transaction models such as "green electricity direct connection" - A market marketing data sensitivity analysis model for existing assets was established to strengthen price-volume analysis[52] - 250 million kWh of green electricity was transmitted to Beijing from the Xilingol League Phase II project through multi-year green power transactions[52] - The first transaction in Beijing to replace reduced gas-fired generation with new energy was completed, totaling 460 million kWh and yielding favorable economic returns[52] - The Group explored direct transaction models with electricity consumers under the "green electricity direct connection" policy to enhance local consumption[52] Multi-dimensional measures to boost market confidence and proactively create value The Group actively managed its market capitalization through investor roadshows, set a strategic goal for inclusion in the Hang Seng Index and Stock Connect, and announced a three-year dividend plan to drive a stable recovery in market value - Completed roadshows in Hong Kong, Singapore, Beijing, and Shanghai, and hosted multiple investor visits, covering nearly 50 institutions[53] - Set the strategic goal of "inclusion in the Hang Seng Index and Stock Connect" to increase liquid market capitalization[53] - Released a three-year shareholder dividend plan and is actively exploring diversified market value management tools such as share buybacks[53] - A combination of "strategic upgrade + profit growth + dividend enhancement" is being used to promote a stable recovery in market value[53] Performance Outlook Strengthening the safety line of defense and consolidating the foundation of energy supply In H2, the Group will deepen its safety production responsibility system and enhance equipment lifecycle management, while leveraging AI large models to optimize operational parameters for gas-fired units and improve safety monitoring at other power plants - The Group will continue to deepen the full-staff safety production responsibility system and strengthen equipment lifecycle management[55] - Gas-fired power plants in Beijing will optimize load distribution, enhance peak-shaving capabilities, and develop an AI large model for gas-fired units to achieve automatic optimization of operating parameters[55] - Power plants outside Beijing will develop a multi-modal large model-based safety management platform to enhance intelligent equipment status perception and personnel behavior recognition[55] Enhancing market-oriented marketing capabilities and optimizing trading strategies The Group will develop a wind and solar power forecasting platform using advanced weather models to maximize returns, while implementing differentiated pricing and focusing on securing green electricity premiums to reduce subsidy dependence - A wind and solar power forecasting and market load forecasting platform will be developed using cutting-edge weather large models to provide high-precision forecast data[56] - The Group will secure high-priced transactions through settlement data analysis and bilateral negotiations[56] - A differentiated pricing mechanism will be implemented to create customized power allocation and trading strategies, with a focus on securing green electricity transaction premiums[56] Focusing on green power transmission to Beijing and large-scale base projects, reserving incremental projects for the 15th Five-Year Plan The Group will prioritize green power transmission to Beijing and large-scale base projects, focusing on resource planning for three key transmission channels, while advancing pumped storage and wind power projects in the Beijing-Tianjin-Hebei region - The Group will focus on resource surveys and planning for three major transmission channels to Beijing: Chengde, Hulunbuir-Xing'an League, and Ningxia[57] - In the Beijing-Tianjin-Hebei region, the Group will advance the preliminary planning of the Mentougou pumped storage project, the Zhuwo project, the "Guanting replacement" project, and the Huainan Phase II wind power project[57] - The implementation progress of the Xilingol League windbreak and sand fixation project and the Shantou offshore wind power project will be closely monitored to achieve major milestones in H2[57] Proactively maintaining company market value and striving for early inclusion in the Stock Connect In H2, the Group will continue to actively manage its market value through enhanced investor communication and transparency, while exploring special dividends and share buybacks to boost market confidence and aim for early inclusion in the Stock Connect - The Group will continue to proactively maintain and enhance its market value, communicate with investors, and improve information disclosure transparency[58] - Special dividend and share buyback plans will be studied to enhance market confidence and align the Group's interests with those of its shareholders[58] - Efforts will be made to increase the liquid market capitalization and gain shareholder support to achieve early inclusion in the "Stock Connect"[58] Operating Performance and Analysis Overview In H1 2025, the company's profit for the period and profit attributable to equity holders decreased by 5.32% and 4.98% year-on-year, respectively Profit for the Period Overview (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 2,070.6 | 2,187.0 | -5.32 | | Profit attributable to equity holders | 1,982.7 | 2,086.7 | -4.98 | Operating Revenue In H1 2025, total operating revenue increased by 2.91% to RMB 10,899.7 million, primarily driven by higher electricity sales from the wind and photovoltaic power segments, while the hydropower segment's revenue declined significantly due to a station shutdown - Total operating revenue increased by 2.91% from RMB 10,591.4 million in H1 2024 to RMB 10,899.7 million in H1 2025, mainly due to increased electricity sales from wind and photovoltaic power projects[60] Segment Operating Revenue Change (For the six months ended June 30) | Segment | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gas-fired power and heat | 6,581.1 | 6,449.2 | +2.05 | | Wind power | 2,683.5 | 2,457.1 | +9.21 | | Photovoltaic power | 1,535.4 | 1,514.0 | +1.41 | | Hydropower | 70.9 | 141.2 | -49.79 | | Others | 28.8 | 29.8 | -4.01 | Other Income In H1 2025, other income decreased by 32.85% to RMB 149.2 million, primarily due to the expiration of a power purchase agreement in Australia and a sharp decline in green certificate market prices, which reduced carbon emission revenue Other Income Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other income | 149.2 | 222.2 | -32.85 | - The decrease in other income was mainly due to the expiration of an Australian power purchase agreement and a sharp fall in green certificate market prices, leading to a year-on-year reduction in carbon emission revenue[66] Operating Expenses In H1 2025, operating expenses rose by 4.03% to RMB 8,001.2 million, driven by higher gas consumption, staff costs, and maintenance expenses, although this was partially offset by lower depreciation and other expenses due to policy adjustments and cost-saving measures Operating Expenses Change (For the six months ended June 30) | Item | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total operating expenses | 8,001.2 | 7,690.9 | +4.03 | | Gas consumption | 4,902.4 | 4,743.5 | +3.35 | | Depreciation and amortization expenses | 1,863.4 | 2,034.8 | -8.42 | | Staff costs | 557.1 | 535.4 | +4.05 | | Repair and maintenance | 189.2 | 174.7 | +8.30 | | Other expenses | 478.2 | 543.0 | -11.93 | | Other losses and gains | -11.0 | 340.6 | N/A (Gain to Loss) | - The decrease in depreciation and amortization expenses was mainly due to adjustments in the depreciation policy for fixed assets[69] - The reduction in other expenses was primarily due to the significant results of the Group's cost reduction and efficiency enhancement initiatives[72] Operating Profit In H1 2025, operating profit decreased by 2.40% to RMB 3,047.6 million, as profit growth in the wind, gas, and solar segments was offset by the hydropower segment swinging to a loss and wider losses in the "others" segment due to the decline in CGN Power's share price Segment Operating Profit Change (For the six months ended June 30) | Segment | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total operating profit | 3,047.6 | 3,122.6 | -2.40 | | Wind power | 1,498.9 | 1,384.7 | +8.25 | | Gas-fired power and heat | 996.2 | 899.7 | +10.73 | | Photovoltaic power | 823.0 | 720.5 | +14.23 | | Hydropower | -22.2 | 273.2 | N/A (Profit to Loss) | | Others | -248.3 | -155.5 | N/A (Loss Widened) | - The operating loss in the hydropower segment was mainly due to a significant year-on-year decrease in electricity sales following a power station shutdown in H1 2024[78] - The increased loss in the "others" segment was primarily due to the decline in the share price of CGN Power held by the Group[79] Finance Costs In H1 2025, finance costs increased by 2.12% to RMB 612.0 million, mainly due to the expensing of interest expenses as more project companies commenced operations Finance Costs Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 612.0 | 599.3 | +2.12 | Share of results of associates and a joint venture In H1 2025, the share of results from associates and a joint venture decreased year-on-year to RMB 58.3 million Share of Results of Associates and a Joint Venture Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Share of results of associates and a joint venture | 58.3 | 60.4 | Profit Before Tax In H1 2025, profit before tax decreased by 3.80% year-on-year to RMB 2,515.8 million Profit Before Tax Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit before tax | 2,515.8 | 2,615.2 | -3.80 | Income Tax Expense In H1 2025, income tax expense increased by 3.97% year-on-year to RMB 445.2 million Income Tax Expense Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 445.2 | 428.2 | +3.97 | Profit for the Period In H1 2025, profit for the period decreased by 5.32% year-on-year to RMB 2,070.6 million Profit for the Period Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 2,070.6 | 2,187.0 | -5.32 | Profit for the period attributable to equity holders of the Company In H1 2025, profit for the period attributable to equity holders of the Company decreased by 4.98% year-on-year to RMB 1,982.7 million Profit for the Period Attributable to Equity Holders of the Company Change (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to equity holders of the Company | 1,982.7 | 2,086.7 | -4.98 | Financial Position Analysis Overview As of June 30, 2025, the Group's total assets were RMB 103,948.2 million, total liabilities were RMB 65,602.1 million, and total equity was RMB 38,346.1 million Financial Position Overview (As of June 30) | Indicator | June 30, 2025 (RMB million) | | :--- | :--- | | Total assets | 103,948.2 | | Total liabilities | 65,602.1 | | Total equity | 38,346.1 | | Equity attributable to equity holders | 33,969.2 | Assets and Liabilities As of June 30, 2025, total assets grew by 2.86% to RMB 103,948.2 million and total liabilities increased by 3.20% to RMB 65,602.1 million, primarily due to new project investments and related financing needs, while equity grew from retained earnings Assets, Liabilities and Equity Change (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 103,948.2 | 101,053.4 | +2.86 | | Total liabilities | 65,602.1 | 63,570.6 | +3.20 | | Total equity | 38,346.1 | 37,482.8 | +2.30 | | Equity attributable to equity holders of the Company | 33,969.2 | 33,161.1 | +2.44 | - The increase in total assets was mainly due to investments in new projects[87] - The increase in total liabilities was primarily due to increased debt to fund project construction[87] Liquidity As of June 30, 2025, current assets stood at RMB 26,410.0 million, while current liabilities were RMB 29,929.9 million, resulting in a 13.08% reduction in net current liabilities to RMB 3,519.9 million, indicating improved liquidity Key Liquidity Data (As of June 30) | Item | June 30, 2025 (RMB million) | | :--- | :--- | | Current assets | 26,410.0 | | Cash and cash equivalents | 7,975.6 | | Trade and bills receivables | 15,971.8 | | Current liabilities | 29,929.9 | | Short-term borrowings | 14,729.3 | | Short-term financing bills | 7,040.1 | | Net current liabilities | -3,519.9 | - Net current liabilities decreased by 13.08% from RMB 4,049.5 million on December 31, 2024 to RMB 3,519.9 million on June 30, 2025[88] Net Gearing Ratio As of June 30, 2025, the net gearing ratio slightly decreased by 0.02 percentage points to 55.51%, as a 7.76% increase in cash and bank deposits offset a 2.97% rise in total borrowings Net Gearing Ratio and Related Indicators Change (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net gearing ratio | 55.51% | 55.53% | -0.02 p.p. | | Total long-term and short-term borrowings (RMB million) | 55,824.5 | 54,216 | +2.97% | | Bank deposits and cash (RMB million) | 7,975.6 | 7,401.6 | +7.76% | Other Significant Events Fundraising In H1 2025, the Group successfully issued multiple tranches of super short-term commercial papers and medium-term notes, raising a total of RMB 6.0 billion at interest rates ranging from 1.67% to 1.98% - On March 21, 2025, the Group issued RMB 2.0 billion of 238-day super short-term commercial papers at a rate of 1.87%[90] - On April 8, 2025, the Group issued RMB 1.5 billion of 121-day super short-term commercial papers at a rate of 1.67%[90] - On April 18, 2025, the Group issued RMB 1.5 billion of 180-day super short-term commercial papers at a rate of 1.68%[90] - On June 26, 2025, the Group issued RMB 1.0 billion of 3+N year medium-term notes at a rate of 1.98%[90] Capital Expenditure In H1 2025, the Group's total capital expenditure amounted to RMB 3,013.6 million, primarily allocated to wind and photovoltaic power projects Capital Expenditure Composition (H1 2025) | Segment | Capital Expenditure (RMB million) | | :--- | :--- | | Gas-fired power and heat | 60.5 | | Wind power | 1,605.5 | | Photovoltaic power | 1,347.6 | | Total | 3,013.6 | Acquisition and Establishment of Subsidiaries The Group did not acquire or establish any subsidiaries during the first half of 2025 - The Group did not acquire or establish any subsidiaries in H1 2025[92] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[93] Pledge of Assets As of June 30, 2025, the Group had pledged bank deposits, accounts receivable, fixed assets, and the entire equity of certain subsidiaries as security for bank borrowings - Bank deposits of RMB 72.2 million and accounts receivable of RMB 3,243.2 million were pledged as security for bank borrowings[94] - Fixed assets with a value of RMB 1,953.9 million were pledged as security for bank borrowings[94] - The entire equity of Gullen Range Wind Farm Holding Pty Ltd, Gullen Solar Pty Ltd, Ningxia Boyang New Energy Co, Ltd, and Ningxia Kaiyang New Energy Co, Ltd was pledged to banks as security for borrowings[94] Significant Events After the Reporting Period Subsequent to the reporting period, the Group entered into a trust contract to issue asset-backed commercial papers totaling RMB 981,717,888.43, with the book-building process completed on July 7, 2025 - On April 24, 2025, the Group entered into a trust contract with CR SZITIC Trust Co, Ltd to issue asset-backed commercial papers totaling RMB 981,717,888.43[95] - The book-building process for these asset-backed commercial papers was completed on July 7, 2025[95] Share Option Scheme As of June 30, 2025, the Company had not implemented any share option scheme - As of June 30, 2025, the Company had not implemented any share option scheme[97] Foreign Exchange and Currency Risk The Group's operations are primarily conducted in Mainland China and denominated in RMB, but it faces currency risk from overseas investments and foreign currency loans, which it will continue to monitor and manage - The majority of the Group's business is conducted in Mainland China, with most revenue and expenses denominated in RMB[98] - The Group is exposed to currency risk from a small number of overseas investments and foreign currency loans (AUD, HKD, USD, EUR), where RMB fluctuations could result in exchange gains or losses[98] - The Group will continue to monitor foreign exchange rates and strengthen currency risk management through various measures[98] Corporate Governance and Other Information Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[99] - As of June 30, 2025, the Company did not hold any treasury shares[99] Interim Dividend The Board of Directors has not proposed any interim dividend for the six months ended June 30, 2025 - The Board of Directors has not proposed any interim dividend for the six months ended June 30, 2025[100] Compliance with the Corporate Governance Code For the six months ended June 30, 2025, the Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited - The Company has complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[101] Compliance with the Model Code for Securities Transactions The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors and supervisors have confirmed their strict compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[102] - All directors and supervisors have confirmed their strict compliance with the required standards set out in the Model Code during the reporting period[102] Audit Committee's Review of Interim Results The Company's Audit Committee has reviewed the Group's interim results for 2025 and the unaudited interim financial report for the six months ended June 30, 2025, prepared in accordance with IAS 34 - The Company's Audit Committee has reviewed the Group's interim results for 2025 and the unaudited interim financial report for the six months ended June 30, 2025, prepared in accordance with International Accounting Standard 34[103] Publication of Interim Results and Interim Report This results announcement is published on the websites of the Stock Exchange and the Company, and the 2025 interim report will be published in due course - This results announcement is published on the "HKEXnews" website of the Stock Exchange and the Company's website[104] - The Company will publish the 2025 interim report, containing all information required by the Listing Rules, on the Company's and the Stock Exchange's websites in due course[104]