Key takeaway

In 2025, the company realized an operating revenue of RMB38.98bn, up 14.76% YoY; a net profit attributable to the parent company of RMB7.263bn, down 17.76% YoY. The YoY decline in the net profit attributable to the parent company was mainly due to the downward trend of the average on-grid tariff, which led to revenue growth without profit growth, coupled with the impact of asset impairment. By power source type, in 2025, the company's converted revenue per kWh for wind power and photovoltaics was RMB0.3586 and RMB0.3232/kWh (tax exclusive) respectively, down RMB0.041 and RMB0.038/kWh YoY. Affected by the falling tariff, the gross margin of the company's wind power business decreased YoY to 32.9%. In terms of asset impairment, in 2025, Huadian New Energy made an asset impairment provision of RMB824mn, mainly due to the impact of the asset impairment provision of RMB769mn for the old turbines planned to be renewed and dismantled affecting the total. In 2026Q1, the company realized an operating revenue of RMB10.588bn, up 9.96% YoY; a net profit attributable to the parent company of RMB2.061bn, down 29.44% YoY. Specifically, the YoY decline in the company's operating performance was mainly due to the downward trend of new energy power generation coupled with the YoY decrease in investment income from participating nuclear power projects.

Risks:

Risk of new energy installed capacity growth falling short of expectations:The company is currently actively advancing the construction of projects on hand. If project progress is hindered and installed capacity growth falls short of expectations, the company's revenue and profit may decline.

Risk of rising procurement prices for power generation equipment:Currently, the procurement prices of photovoltaic modules and wind power equipment are at relatively low levels. If the mid to upstream production capacity shrinks significantly, the company's equipment procurement prices will rise, driving up depreciation costs, and the growth of the company's operating performance may fall short of expectations.

Risk of fluctuations in wind and solar on-grid power generation:Wind and photovoltaic on-grid power generation is affected by factors such as natural resource conditions, grid connection project construction, and local new energy consumption capacity. If on-grid power generation declines, the company's operating performance may fall short of expectations.