Core Viewpoint - The company reported a decline in revenue and net profit for Q1 2025, primarily due to lower electricity prices, reduced electricity consumption, and increased operating expenses [1][2]. Financial Performance - The company achieved revenue of 6.42 billion yuan, a year-on-year decrease of 8.1% - The net profit attributable to shareholders was 444 million yuan, down 1.98% year-on-year [1]. Operational Analysis - Electricity prices in Anhui province decreased slightly by over 0.02 yuan/kWh compared to 2024, leading to a 6% drop in the company's purchasing price [2]. - The company’s electricity generation cost fell by approximately 7% due to a decline in coal prices, with long-term and market coal prices dropping by 2.6% and 17.5% respectively [2]. - Despite an increase in installed capacity, electricity consumption in Anhui province fell by 1.5% year-on-year, which negatively impacted the utilization hours of thermal power plants [2][3]. Expense Analysis - Management and R&D expenses increased significantly by 35.3% and 195.6% respectively, leading to a rise in the expense ratio by 1.1 percentage points [3]. - Investment income from associates decreased by 42.1% due to similar pressures from electricity prices and consumption [3]. Future Outlook - The company anticipates potential growth in performance for the remainder of 2025, supported by ongoing declines in coal prices and the commissioning of new power generation units [3]. - The company projects net profits of 2.19 billion, 2.32 billion, and 2.39 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.96, 1.03, and 1.05 yuan [4]. - The current stock price corresponds to PE ratios of 8.05, 7.57, and 7.37 for the years 2025, 2026, and 2027, maintaining a "buy" rating [4].