Huaneng Power International Q1 2026: Revenue Down 5.89 %, Net Profit Drops 9.83 % on Softer Domestic Tariffs

Huaneng Power International (HUANENG POWER) released its unaudited first-quarter results for 2026, prepared under PRC GAAP.

Operating performance • Revenue fell 5.89 % year on year to RMB 56.78 billion, primarily reflecting lower power output and tariffs in the domestic market. • Profit before tax slipped 6.20 % to RMB 7.69 billion, while net profit attributable to equity holders declined 9.83 % to RMB 4.48 billion. • Excluding non-recurring items of RMB 0.26 billion, underlying net profit dropped 12.04 % to RMB 4.22 billion. • Basic and diluted EPS both decreased to RMB 0.25, down 8.45 %. • Weighted ROE eased to 5.78 % from 7.15 %.

Cost and margin dynamics • Operating costs contracted 6.44 % to RMB 45.70 billion, largely due to lower domestic coal prices. • Other income rose 43.51 % to RMB 0.32 billion, benefiting from higher government grants and tax rebates. • Carbon-credit trading affected non-operating items: related income rose 23.97 % to RMB 0.13 billion, while expenses increased 52.05 % to RMB 0.10 billion.

Segment highlights (domestic power business, profit before tax) • Coal-fired: up 9.01 % to RMB 4.34 billion. • Combined-cycle gas: up 24.93 % to RMB 0.94 billion. • Wind: down 19.70 % to RMB 1.81 billion. • Photovoltaic: down 58.67 % to RMB 0.23 billion. • Hydropower swung to a marginal profit, while biomass more than doubled to RMB 0.01 billion.

Cash flow and investment • Operating cash inflow fell 28.51 % to RMB 12.44 billion, mirroring the revenue decline. • Net investing cash outflow was RMB 9.07 billion, mainly driven by RMB 9.15 billion of capital expenditure on fixed and intangible assets. • Net financing outflow reached RMB 1.04 billion, reflecting RMB 17.00 billion redemption of other equity instruments and RMB 51.41 billion of loan repayments, partially offset by new borrowings of RMB 65.38 billion.

Balance-sheet position (end-March 2026 vs. end-2025) • Total assets edged up 0.48 % to RMB 614.70 billion. • Equity attributable to shareholders decreased 5.58 % to RMB 134.51 billion after the redemption of equity instruments. • Short-term loans expanded 22.61 % to RMB 75.93 billion, while inventories fell 28.14 % on lower coal prices and drawdowns. • Construction-in-progress grew 5.54 % to RMB 70.86 billion, underscoring ongoing investment in new-energy projects.

Shareholding structure As of 31 March 2026 the company had 138,319 ordinary shareholders. Huaneng International Power Development Corporation remained the largest shareholder with a 32.28 % stake, followed by HKSCC Nominees Limited at 26.78 % and China Huaneng Group at 9.91 %.

Outlook Management attributed the profit contraction to weaker domestic demand and tariffs, partly offset by lower fuel costs. Continued investment in new-energy capacity and active management of fuel and financing costs remain key focus areas for the remainder of 2026.