Huaneng Power International (902) Q2 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 was RMB 106.91 billion, down 4.57% year-on-year; net profit attributable to shareholders was RMB 6.868 billion, a 28.29% decrease year-on-year; EPS was RMB 0.37.

• Domestic on-grid power sales decreased by 2.97% to 199.578 billion kWh, with average utilisation hours down by 145 hours to 1,358 hours.

• Renewables capacity expanded, with 2.55 GW of new renewable installations (out of 3.04 GW total new capacity), and low-carbon energy now over 42% of the portfolio.

• Overseas operations saw mixed results: Singapore's pre-tax profit fell RMB 618 million due to higher carbon taxes and contract expiries, while Pakistan's pre-tax profit rose RMB 15 million.

• Business transformation accelerated, focusing on low-carbon and green energy, with steady progress in scientific innovation.

Financial highlights

• Consolidated operating revenue: RMB 106.91 billion, down 4.57% year-on-year.

• Net profit attributable to shareholders: RMB 6.868 billion, down 28.29% year-on-year.

• EPS: RMB 0.37.

• Net cash provided by operating activities: RMB 25.243 billion, down 17.91% year-on-year.

• Total assets as of 30 June 2026: RMB 625.168 billion; asset-liability ratio: 65.20%.

Outlook and guidance

• Focus on optimizing power generation and asset portfolio, improving efficiency and cost control, especially in coal procurement and inventory management.

• No change to the full-year renewables installation target of 7.7 GW; over 10 GW under construction supports this goal.

• Dividend payout ratio to remain no less than 50%, with 2026 dividend at RMB 0.4/share, up 50% from 2024.

• National power supply-demand balance expected to ease, but local shortages and spot market price volatility may persist.

• Coal supply expected to remain tight with rising demand and import uncertainties; company to leverage long-term contracts and optimize procurement.