Huaneng Power International (902) Q2 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 was RMB 106.91 billion, down 4.58% year-on-year, with net profit attributable to shareholders at RMB 6.59 billion, a 28.89% decrease year-on-year, and EPS at RMB 0.35.

• Domestic power generation declined 2.97% year-on-year, driven by lower utilisation hours and a reduced share of coal-fired units, despite growth in wind and PV capacity.

• Renewables capacity grew, 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 in Singapore and Pakistan showed mixed results, with Singapore's pre-tax profit falling due to higher carbon taxes and contract expiries, while Pakistan's pre-tax profit increased slightly.

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

Financial highlights

• Consolidated operating revenue: RMB 106.91 billion, down 4.58% year-on-year.

• Net profit attributable to shareholders: RMB 6.59 billion, down 28.89% year-on-year.

• EPS: RMB 0.35.

• Fuel costs fell 6.02% year-on-year to RMB 54.80 billion, reflecting improved cost control and lower coal prices.

• Net cash provided by operating activities was RMB 25.24 billion, down 17.91% year-on-year.

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.

• The company expects a more balanced national electricity supply-demand in the second half, but local shortages may occur during peak periods.

• Strategic focus on quality and efficiency for the 15th Five-Year Plan, with continued green energy transformation.