Datang International Power Generation Co., Ltd. (Datang Power) reported solid first-quarter 2026 results, with earnings growth outpacing revenue on the back of lower fuel costs and stronger contributions from associates and joint ventures.

Revenue and Profitability • Operating revenue edged up 0.22% year-on-year to RMB 30.27 billion. • Net profit attributable to equity holders rose 29.26% to RMB 2.89 billion, while total profit reached RMB 4.14 billion, up 27.39%. • Basic and diluted EPS increased to RMB 0.1408, a 40.24% improvement. • Weighted average ROE advanced 1.42 percentage points to 7.35%.

Cost Structure and Margins • Operating costs declined 3.25% to RMB 24.32 billion, reflecting lower coal prices and efficiency gains. • Selling expenses climbed 36.93% due to higher service and agency fees at power-trading subsidiaries. • Financial expenses fell 8.74% to RMB 1.05 billion. • Other income dropped 33.57% as a value-added tax rebate for certain wind projects expired. • Investment income grew 37.59%, supported by improved performance of associates and joint ventures.

Non-Recurring Items Non-recurring gains totaled RMB 25.78 million, driven mainly by government subsidies and asset disposals; the underlying (adjusted) net profit rose 29.94% to RMB 2.87 billion.

Cash Flow and Balance Sheet • Net cash generated from operating activities declined 7.99% to RMB 8.57 billion. • Financing cash flow turned more negative at ‑RMB 4.75 billion, as the company used higher operating cash to repay debt. • Total assets stood at RMB 331.35 billion, little changed from end-2025, while equity attributable to shareholders increased 3.15% to RMB 82.88 billion. • Contract liabilities dropped 84.49%, reflecting the end of the heating season, whereas prepayments rose 40.61% due to higher advance payments for fuel.

Capital Structure Interest-bearing short- and long-term borrowings amounted to RMB 156.35 billion, broadly stable quarter-on-quarter. State-owned parent China Datang Corporation Ltd. remained the largest shareholder with a 53.04% aggregate stake (A and H shares).

Outlook Indicators Management attributed the earnings improvement primarily to declining fuel costs and modest revenue expansion. While operating cash generation remains robust, heightened debt repayments pressured financing cash flows during the quarter.

The first-quarter figures are unaudited and prepared under China Accounting Standards for Business Enterprises.