HUANENG LANCANG RIVER HYDROPOWER (600025) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥11.88 billion, up 13.10% year-over-year, with net profit attributable to shareholders at ¥4.17 billion, up 22.47% year-over-year.

• Power generation volume increased 12.15% year-over-year to 46.695 billion kWh, driven by higher hydropower output and expanded new energy capacity.

• Hydropower and new energy projects remain the core business, with the company leading in installed capacity in Yunnan and advancing integrated clean energy base construction.

• No interim dividend or capital increase from reserves was proposed for the half-year period.

Financial highlights

• Operating income: ¥11.88 billion, up 13.10% year-over-year.

• Net profit attributable to shareholders: ¥4.17 billion, up 22.47% year-over-year.

• Basic and diluted EPS: ¥0.22, up 22.59% year-over-year.

• Net cash from operating activities: ¥7.54 billion, up 6.76% year-over-year.

• Gross margin improved as cost increases lagged revenue growth.

Outlook and guidance

• The company will closely monitor hydrological conditions and optimize dispatch to maximize power generation and revenue.

• Faces challenges from evolving power market reforms and single-customer concentration in the supply region.

• Will continue to expand new energy projects and enhance integrated clean energy base development.