CHINA POWER (02380) revealed that its A-share listed hydropower unit, now part of the restructuring, has posted a stunning profit forecast. The company anticipates a net profit attributable to shareholders of around 1.19 billion yuan for the first half of 2026. This represents a staggering increase of approximately 1.175 billion yuan, or 7,673% year-on-year compared to the pre-restatement period, and a rise of 653 million yuan, or 122%, compared to the post-restatement figure.

The outstanding earnings forecast clearly demonstrates the tangible results of CHINA POWER's major asset restructuring. Combined with the long-term plan of the State Power Investment Corporation (SPIC) to continuously inject high-quality hydropower assets, the company's hydropower business is poised to unlock significant long-term growth potential.

This leap in performance is driven by the implementation of the 2025 major asset restructuring and improved water flow at the newly consolidated basins, which boosted hydropower generation. On October 31, 2025, the hydropower unit completed the asset transfer of Wuling Power Corporation and Guangxi Changzhou Hydropower Development Co., Ltd. Both companies were consolidated into the reporting entity, adding new businesses in hydropower generation and integrated development of new energy at basin-level water stations.

Notably, SPIC demonstrated a clear strategic intent in this restructuring. It made a firm commitment to, within three years of the asset transfer completion, promote the gradual injection of other SPIC hydropower assets into the unit, subject to relevant laws and securities regulations. SPIC also pledged to support CHINA POWER in continuing to control the entity, progressively building it into SPIC's platform for domestic hydropower asset integration.

The arrival of these hydropower and related new energy assets will directly expand the installed capacity and profitability of CHINA POWER's hydropower segment. This is a major initiative to optimize the company's hydropower asset structure and enhance its core competitiveness.

Against the backdrop of energy transition and the construction of a new power system, hydropower assets, known for their stable earnings and strong cash flow, continue to attract market favor. Through its specialized hydropower platform, CHINA POWER will share the benefits of the restructuring and asset injection. In the medium to long term, this creates opportunities for asset expansion, continuously pushing the growth ceiling of the hydropower segment higher and providing solid support for the company's long-term investment value.