Huadian Power International Corporation (1071) Q2 2024 earnings summary

Executive summary

• Turnover for the six months ended 30 June 2024 was RMB52,894 million, down 10.43% year-over-year, mainly due to lower power generation, on-grid tariff, and coal trading volume.

• Profit attributable to equity holders rose 19.29% to RMB3,432 million; basic EPS increased 19.67% to RMB0.286.

• Operating profit surged 53.95% to RMB3,365 million, driven by lower fuel prices and improved efficiency.

• Interim dividend of RMB0.08 per share (tax inclusive) proposed, totaling RMB818 million.

Financial highlights

• Revenue from electricity sales: RMB42,877 million (down 9.02% YoY); heat sales: RMB5,613 million (up 2.39% YoY); coal sales: RMB4,404 million (down 31.63% YoY).

• Fuel costs: RMB32,839 million (down 15.43% YoY); depreciation and amortization: RMB5,363 million (up 3.90% YoY).

• Finance costs: RMB1,660 million (down 10.40% YoY); income tax: RMB789 million (up from RMB454 million YoY).

• Net cash inflow from operating activities: RMB5,285 million (up RMB3,534 million YoY).

• Liabilities to assets ratio was 60.78%, down 1.29 percentage points from end-2023.

Outlook and guidance

• The company will focus on optimizing power generation and pricing strategies, controlling marginal costs, and improving efficiency of gas-fired units.

• Plans to accelerate technological upgrades for coal-fired units and improve gas-fired segment profitability.

• Will closely monitor coal market, ensure adequate reserves, and control procurement costs.

• Emphasis on carbon asset management and low-carbon transformation in response to tightening emission quotas.