Huaneng Power International (902) Q1 2026 earnings summary

Executive summary

• Operating revenue for Q1 2026 was CNY 56.8 billion, down 5.89% year-on-year, with net profit attributable to shareholders at CNY 4.48 billion, a 9.83% decrease year-on-year.

• Net cash flows from operating activities dropped 28.51% year-on-year to CNY 12.44 billion.

• Total domestic on-grid power sales fell 4.82% to 101.48 billion kWh, and average tariff dropped 5.63% to CNY 460.73/MWh.

• The company continued its low-carbon transformation, with renewables capacity rising and clean energy now accounting for 41.42% of total capacity.

Financial highlights

• Standard coal price decreased 9.39% to CNY 874.24/ton in Q1.

• Financial expense for Q1 was CNY 1.73 billion, a slight decrease of CNY 10 million (0.04%) year-on-year.

• Interest-bearing debt rate was 2.36%, down 8 basis points from the start of 2026.

• Profit before tax was CNY 7.69 billion, down 6.20% year-on-year.

• Basic and diluted EPS were both CNY 0.25, down 8.45% year-on-year.

Outlook and guidance

• The company expects spot market power prices to decrease as supply-demand balances, with stabilization supported by new policies and ancillary services.

• Revenue and profit declines attributed to lower domestic power generation and tariffs, partially offset by reduced fuel costs.

• Plans to expand coal inventory from April to June to mitigate market impacts.

• Focus remains on renewable project construction, investment efficiency, and optimizing the energy mix.