Zhejiang Zheneng Electric Power (600023) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was RMB 17.60 billion, down 12.09% year-over-year due to lower electricity prices.

• Net profit attributable to shareholders fell 40.81% year-over-year to RMB 1.07 billion, mainly from price declines and reduced affiliate performance.

• Cash flow from operating activities nearly doubled year-over-year to RMB 3.57 billion, reflecting lower cash outflows for coal payments.

Financial highlights

• Basic and diluted EPS were RMB 0.08, down 42.86% year-over-year.

• Gross margin and operating profit declined in line with revenue and net profit.

• Total assets at quarter-end were RMB 153.24 billion, down 0.55% from year-end 2024.

• Shareholders' equity increased 1.99% to RMB 74.78 billion.

• Non-recurring profit items contributed RMB 114 million, mainly from government grants and asset disposals.

Outlook and guidance

• Management attributes profit and revenue declines to lower electricity prices and weaker results from affiliates.

• Ongoing construction of major projects (e.g., Jiaxing Phase IV, Tai'er Power II, Binhai Thermal IV, Aksu Thermal PV) is expected to support future growth.