HEGC(SZ:000883)2025-09-07 13:02Group 1: Company Strategy and Development Goals - The company has initiated the "14th Five-Year Plan" preparation, focusing on key business and new business research, benchmarking against external enterprises, and discussing future development positioning and goals [2][3] - The strategic goal is to "base in Hubei, expand nationwide, and radiate overseas," aiming to refine hydropower, strengthen thermal power, expand renewable energy, and optimize comprehensive energy [3] Group 2: Financial Performance and Profit Margins - For the first half of 2025, the company's gross profit was CNY 2.018 billion, with hydropower gross profit at CNY 775 million, a decrease of CNY 644 million, primarily due to low water levels and a 34.10% decrease in hydropower generation [4] - Thermal power gross profit increased by CNY 48 million to CNY 669 million, while renewable energy gross profit decreased by CNY 1.24 billion to CNY 448 million due to intensified market competition and declining on-grid prices [4] Group 3: Revenue Improvement Measures - To enhance revenue and improve gross margins, the company plans to strengthen market marketing, enhance management efficiency, control costs, and optimize resource allocation [4][5] - Specific measures include scientific electricity market transaction planning, improving equipment utilization, controlling coal procurement costs, and maximizing the synergy of hydropower and thermal power [5] Group 4: Project Development and Capacity Expansion - The company expects to add 1 million kW of new capacity in 2025, with key projects including three pumped storage projects and a 150 MW wind power project scheduled for completion by December 2025 [6] - The company’s ongoing projects include the Jiangling Phase II thermal power project, expected to be fully operational by 2026, and various pumped storage projects anticipated to be completed by 2030 [6] Group 5: Renewable Energy Subsidies and Market Conditions - As of June 2025, the company had not yet recovered CNY 3.139 billion in renewable energy subsidies, with CNY 425 million recovered in 2024 [8] - The company is adapting to the evolving electricity market in Hubei, where competition is increasing due to policy changes and market reforms [9] Group 6: Financing and Dividend Policy - As of June 2025, the company’s interest-bearing debt was CNY 47 billion, with a financing cost rate below 3% [10] - The company is exploring options to increase dividend frequency and proportion while considering profitability and investment needs [11] Group 7: Market Trading Participation - The company participates in market trading for all electricity generated from its coal and new energy projects, with over 70% of annual trading volume coming from medium to long-term transactions [10]