SDIC Power(SH:600886) Hua Xia Shi Bao·2025-07-13 23:52Core Viewpoint - A significant safety incident occurred at the Huifeng New Energy's wind farm project in Guizhou, which is controlled by Guotou Electric Power, prompting an investigation by local authorities [2][3]. Company Overview - Guotou Electric Power is a major player in China's clean energy sector, primarily relying on hydropower, and is the third-largest listed company by hydropower installed capacity in the country [4]. - The company has a total installed capacity of 44.63 million kilowatts as of the end of 2024, with hydropower accounting for 21.30 million kilowatts, representing 47.73% of its total capacity [4][6]. Financial Performance - In 2024, Guotou Electric Power reported a revenue of 57.82 billion yuan, a year-on-year increase of 1.95%, but net profit decreased by 0.92% to 6.64 billion yuan [5]. - The fourth quarter of 2024 saw a significant decline in net profit, dropping by 90.01% to 0.65 billion yuan, primarily due to increased income tax expenses [5][6]. - For the first quarter of 2025, the company experienced a revenue decline of 6.99% to 13.12 billion yuan, while net profit increased by 2.10% to 2.08 billion yuan, driven by growth in hydropower generation [6]. Business Segmentation - The revenue from hydropower in 2024 was 26.62 billion yuan, accounting for 75.5% of total revenue, while the revenue from thermal power was 21.78 billion yuan, and from new energy sources was 4.85 billion yuan [6]. - The company’s hydropower segment showed a growth of 4.1% in revenue, while the new energy segment's revenue grew by 6.4% [6]. Debt and Financial Strategy - As of the end of 2024, Guotou Electric Power had significant liabilities, including short-term loans of 9.28 billion yuan and long-term loans of 117.79 billion yuan, leading to high interest expenses of 4.37 billion yuan [7]. - The capital-intensive nature of hydropower development necessitates substantial borrowing, which impacts profitability until projects become operational [7].