Zhejiang Zheneng Electric Power (600023) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for Q3 was RMB 2.77 billion, down 12.90% year-over-year; YTD net profit rose 12.37% to RMB 6.70 billion, driven by lower coal costs.

• Operating cash flow for the first nine months surged 88.69% year-over-year to RMB 9.85 billion due to reduced procurement costs.

Financial highlights

• Q3 revenue was RMB 26.13 billion, down 5.93% year-over-year; YTD revenue was RMB 66.30 billion, down 4.62%.

• Basic and diluted EPS for Q3 was RMB 0.21, down 8.70% year-over-year; YTD EPS was RMB 0.50, up 13.64%.

• Total assets at quarter-end reached RMB 152.88 billion, up 3.83% from year-end; equity attributable to shareholders rose 6.88% to RMB 72.04 billion.

• Non-recurring gains YTD totaled RMB 310 million, mainly from government subsidies and asset disposals.

Outlook and guidance

• Net profit growth for the nine-month period was mainly due to a significant decrease in coal costs.

• Revenue decline attributed to lower sales from Zhonglai Power.