Zhejiang Zheneng Electric Power (600023) H1 2025 earnings summary

Executive summary

• Largest power generation company in Zhejiang, focusing on thermal, gas, nuclear, cogeneration, and integrated energy, with significant presence in the province and a growing photovoltaic business via Zhonglai acquisition.

• 2025 H1 saw power generation and on-grid electricity increase by 4.48% and 4.57% year-over-year, respectively.

• Net profit attributable to shareholders was ¥3.51 billion, down 10.57% year-over-year, with a narrowing decline compared to Q1.

• Revenue reached ¥35.47 billion, down 11.68% year-over-year, mainly due to lower electricity sales prices and reduced external photovoltaic product sales.

• Proposed interim cash dividend of ¥0.05 per share, totaling ¥670 million.

Financial highlights

• Operating income: ¥35.47 billion, down 11.68% year-over-year.

• Net profit attributable to shareholders: ¥3.51 billion, down 10.57% year-over-year.

• Operating cash flow: ¥5.53 billion, up 3.73% year-over-year.

• Basic and diluted EPS: ¥0.26, down 10.34% year-over-year.

• Gross margin improved due to lower coal prices and cost control.

Outlook and guidance

• National electricity demand expected to grow 5–6% for 2025, with H2 growth outpacing H1.

• Company to continue focusing on high-quality development, cost reduction, and energy transition, with ongoing investments in new energy and storage.

• Interim dividend policy remains stable, with a payout ratio of 50.15% for 2024 and a planned interim payout for 2025.