China Power 2026 Interim Report: Profit Drops 47% on Weaker Wind & Solar, Hydropower Offsets Partially

Bulletin Express
Sep 18

China Power International Development Limited (“China Power”) reported 2026 interim results showing a sharp earnings contraction amid mixed operational performance across its generation portfolio.

Revenue for the six months to 30 June 2026 fell 5.87 % year on year to RMB 22.46 billion, while profit attributable to equity holders slid 46.8 % to RMB 1.51 billion. Basic earnings per share declined to RMB 0.10 from RMB 0.21.

Operating profit dropped 24.82 % to RMB 5.72 billion, pressured by lower contributions from wind, photovoltaic (PV) and coal-fired segments. Group net profit contracted 39.0 % to RMB 2.81 billion.

Segment performance diverged sharply: • Hydropower: Net profit surged 148.9 % to RMB 1.37 billion, benefitting from a 51.95 % jump in generation on favourable rainfall. • Wind: Profit halved to RMB 1.04 billion (-51.2 %), as generation fell 13.82 % and average on-grid tariff retreated 3.5 %. • Photovoltaic: Profit plunged 89.0 % to RMB 78.43 million on softer irradiation, grid curtailment and lower tariffs. • Thermal (coal-fired): Profit declined 56.2 % to RMB 625.83 million due to a 10.9 % reduction in sales volume and weaker market tariffs. • Energy Storage: Revenue almost tripled to RMB 771.53 million, yet the segment booked a RMB 14.36 million loss amid thin margins.

Total electricity sold slipped 0.81 % to 62.03 million MWh. Installed capacity expanded 6.41 % to 57.40 GW, with clean-energy assets (hydro, wind, PV, gas, environmental) accounting for 82.89 % of the portfolio.

Financial position remained stable: • Cash and cash equivalents rose 60.35 % to RMB 10.23 billion. • Total debt increased 4.35 % to RMB 219.48 billion; gearing ratio held at roughly 65 %. • Capital expenditure reached RMB 8.51 billion, 88 % directed to clean-energy projects. • No interim dividend was declared, though management reiterated a full-year payout target of at least 50 % of earnings.

Post-period events include: • July 2026: SPIC Hydropower’s RMB 4.36 billion A-share placement, diluting China Power’s stake to 50.69 % yet retaining control. • August 2026: Agreement to sell the entire 24.87 % stake in Shanghai Qiyuanxin Power Technology to CATL for RMB 2.56 billion, expected to generate a gain of about RMB 1.37 billion and bolster liquidity. • August 2026: Issuance of a RMB 2.00 billion three-year medium-term note at 1.58 % to refinance existing debt.

Management signalled continued focus on high-quality clean-energy expansion, including offshore wind and large-scale renewables bases, alongside disposal of non-core assets to optimize the capital structure.

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