CGN POWER (1816) H1 2024 earnings summary

Executive summary

• Achieved safe and stable operation of 28 nuclear power units and orderly progress on 10 units under construction, with Fangchenggang Unit 4 commencing commercial operation in May 2024 and Ningde Unit 5 construction starting in July 2024.

• On-grid power generation reached 106,009.67 GWh, up 0.09% year-over-year, with emission reductions equivalent to 87.03 million tons of CO2.

• Revenue increased 0.3% year-over-year to RMB39.38 billion; net profit attributable to shareholders rose 2.2% to RMB7.11 billion.

• Maintained a strong safety record with no nuclear events at or above INES level 2.

Financial highlights

• Operating revenue: RMB39.38 billion (+0.3% YoY); operating costs: RMB24.19 billion (+7.5% YoY).

• EBITDA: RMB21.93 billion (+1.4% YoY); EBITDA margin: 55.7%; net profit: RMB10.85 billion.

• Net profit attributable to shareholders (excluding non-recurring items): RMB6.96 billion (+0.1% YoY).

• Basic EPS: RMB0.141; weighted average ROE: 6.13%.

• Finance costs decreased by 15.3% due to higher exchange gains; other gains increased 45% mainly from higher VAT refunds.

Outlook and guidance

• Focus on nuclear safety, quality assurance, and cost control for ongoing and new projects.

• Plan to conduct 8 refuelling outages in H2 2024 and target average utilization hours not less than the three-year average.

• Actively promote A-share convertible bond issuance to support capital structure and business development.

• No interim dividend recommended for H1 2024.