Di Yi Cai Jing·2025-09-01 23:40Core Viewpoint - The five major power generation companies in China reported a significant increase in net profits for the first half of the year, reaching a combined net profit of 24.267 billion yuan, the highest in nearly a decade, despite a decline in revenue due to falling electricity prices and generation volumes [1][2]. Group 1: Financial Performance - The five major power generation companies achieved a total net profit of 24.267 billion yuan, surpassing the total net profit for the same period in 2024, marking the highest net profit since 2016 [1]. - Among these companies, Huaneng International and Datang Power reported net profit increases of 24.26% and 47.25%, reaching 9.262 billion yuan and 4.579 billion yuan respectively, leading the group [1]. - Only Guodian Power experienced a decline in net profit, attributed to the previous year's transfer of a subsidiary, but its adjusted net profit excluding non-recurring items increased by over 56% to 3.41 billion yuan [1]. Group 2: Cost Factors - The decline in coal prices was a primary factor contributing to the collective profit growth of these companies, with the average price of thermal coal dropping by approximately 22.2% year-on-year to about 685 yuan per ton [2]. - Huaneng International's coal-fired power segment saw a net profit increase of 84% to 7.31 billion yuan, while Datang Power's coal-fired segment nearly doubled, reaching 3.148 billion yuan [2]. - Despite profit growth, the companies faced a nearly 10% decline in revenue, primarily due to reduced electricity generation and falling electricity prices [2]. Group 3: Market Dynamics - The implementation of market-based pricing for renewable energy has led to a collective decline in electricity prices and generation volumes, impacting overall revenue for the companies [2][3]. - Guodian Power highlighted the increased volatility and uncertainty in electricity prices due to the expansion of the electricity spot market, which is influenced by real-time supply and demand [3]. - The average on-grid electricity price for Huaneng International decreased by 2.7% to 485.27 yuan per megawatt-hour, which was less than the 9.2% decline in coal prices [3]. Group 4: Strategic Responses - In response to the challenges posed by the entry of renewable energy and the acceleration of the electricity spot market, China Power plans to adjust its trading strategies and enhance asset management to ensure competitive pricing [5]. - Guodian Power emphasized the importance of training and selecting traders, as well as utilizing big data and AI to improve market analysis and forecasting capabilities [5]. - The introduction of capacity pricing for coal-fired power plants has improved profitability and reduced losses, providing a more stable profit structure for these companies [4].