Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with a significant drop in investment income, while the non-recurring net profit showed substantial growth due to the absence of previous year’s asset transfer impact [1][2]. Financial Performance - In H1 2025, the company achieved operating revenue of 776.55 billion yuan, a year-on-year decrease of 9.52% - The net profit attributable to shareholders was 36.87 billion yuan, down 45.11% - Basic earnings per share were 0.207 yuan, a decline of 45.09% - The weighted average return on equity (ROE) was 6.36%, down 6.50 percentage points year-on-year - Total cash dividends amounted to 17.84 billion yuan, with a cash dividend ratio of 48.38% - Investment income was 12.29 billion yuan, a significant decrease of 79.72% - The non-recurring net profit reached 34.10 billion yuan, a substantial increase of 56.12% [1]. Operational Data - The company’s coal, gas, and hydropower generation in H1 2025 was 1601.24 billion kWh, 13.43 billion kWh, and 228.7 billion kWh, respectively, showing year-on-year declines of 7.58%, 19.91%, and 6.44% - The on-grid electricity prices were 428.75 yuan/MWh for coal, 853.43 yuan/MWh for gas, and 273.53 yuan/MWh for hydropower, with year-on-year changes of -6.97%, -2.65%, and +4.96% - The corresponding utilization hours were 2185, 802, and 1530 hours, with declines of 9.75%, 26.96%, and 6.42% respectively - The net profit from thermal and hydropower segments was 19.67 billion yuan and 8.83 billion yuan, accounting for 53.35% and 23.95% of total profit, respectively [2]. Growth Drivers - In H1 2025, the company’s wind and solar power generation was 113.55 billion kWh and 103.35 billion kWh, reflecting year-on-year increases of 10.37% and 122.55% - The on-grid electricity prices for wind and solar were 450.10 yuan/MWh and 329.84 yuan/MWh, with year-on-year decreases of 6.0% and 21.8% - The utilization hours for wind and solar were 1127 and 606 hours, with increases of 1.99% and 15.43% - The net profit from wind and solar segments was 5.29 billion yuan and 5.91 billion yuan, accounting for 14.35% and 16.03% of total profit, with year-on-year changes of -31.1% and +37.1% - The company added 645.16 MW of new renewable energy capacity, with 32.93 MW from wind and 612.23 MW from solar, establishing a foundation for future revenue growth [3]. Project Pipeline - As of June 2025, the company had a total installed capacity of 120.2 GW, with coal accounting for 63.8%, hydropower for 12.4%, wind for 8.5%, and solar for 15.3% - In H1 2025, the company secured 353.48 MW of new energy resources and completed approvals for 377.39 MW of new energy capacity, including 144.45 MW from wind and 232.94 MW from solar - The company has 211.83 MW of wind projects and 343.34 MW of solar projects under construction, primarily located in Inner Mongolia, Gansu, Tianjin, Xinjiang, and other regions, which will continue to drive performance growth [4].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index in the next six months [5][18]. Core Views - The company's non-recurring profit increased significantly, with a year-on-year growth of 56.12% in non-recurring net profit, primarily due to the impact of equity transfer in the previous year [1]. - The company is experiencing a decline in revenue and net profit, with a projected revenue of 176.29 billion yuan in 2025, down 1.6% year-on-year, and a net profit of 7.42 billion yuan, down 24.5% year-on-year [1][9]. - The company is expanding its renewable energy capacity, with significant increases in wind and solar power generation, which are expected to support future revenue growth despite current price pressures [3][9]. Financial Summary - **Revenue and Profitability**: The company reported a revenue of 77.655 billion yuan in the first half of 2025, a decrease of 9.52% year-on-year, and a net profit of 3.687 billion yuan, down 45.11% year-on-year [1][2]. - **Earnings Per Share (EPS)**: The latest diluted EPS is projected to be 0.42 yuan in 2025, with a P/E ratio of 11.6 times [1][9]. - **Return on Equity (ROE)**: The ROE is expected to be 9.4% in 2025, reflecting a decrease from previous years [1][9]. Operational Data - **Power Generation**: In the first half of 2025, the company generated 160.124 billion kWh from coal, 13.43 billion kWh from gas, and 228.7 billion kWh from hydropower, with respective year-on-year changes of -7.58%, +19.91%, and -6.44% [2]. - **Renewable Energy Growth**: The company achieved a wind power generation of 11.355 billion kWh and solar power generation of 10.335 billion kWh, with year-on-year increases of 10.37% and 122.55% respectively [3]. Project Pipeline - The company has a total installed capacity of 120.2 GW as of June 2025, with significant contributions from coal, hydropower, wind, and solar [4][9]. - The company has ongoing and reserve projects that are expected to continuously drive performance growth, with 645.16 MW of new renewable energy capacity added in the first half of 2025 [3][9].