Zhejiang Zheneng Electric Power (600023) Q2 2026 earnings summary

Executive summary

• Largest power generation company in Zhejiang, operating coal, gas, nuclear, cogeneration, and integrated energy businesses, with a growing presence in photovoltaics through control of Zhonglai Co.

• Faced with declining electricity prices and rising coal costs, focused on cost control, efficiency, and expanding green energy projects.

• Completed major coal power and nuclear projects, and increased green power transactions and retail user contracts.

Financial highlights

• Operating revenue for H1 2026 was RMB 32.58 billion, down 8.16% year-over-year.

• Net profit attributable to shareholders was RMB 1.50 billion, down 57.21% year-over-year.

• Operating cash flow was RMB 4.06 billion, down 26.62% year-over-year.

• Basic and diluted EPS were RMB 0.11, down 57.69% year-over-year.

• Gross margin and net margin declined due to lower power prices and higher fuel costs.

Outlook and guidance

• National electricity demand expected to grow 5-6% in H2 2026; new installed capacity to reach 4 GW for the year.

• Company will continue to focus on energy supply security, green transformation, and cost reduction.

• Plans to further expand nuclear and renewable energy investments and maintain high dividend payout.