Datang Renewable Power H1 2026 Profit Slides 59% as Wind Output Falls; Revenue Down 14%

Bulletin Express08-27 20:21

China Datang Corporation Renewable Power Co., Limited (“Datang Renewable”) reported a sharp earnings decline for the six months ended 30 June 2026, as weaker wind resources offset solid growth in solar output.

Financial Performance • Revenue fell 13.91% year-on-year to RMB 5.89 billion, reflecting lower electricity sales volumes and prices. • Profit before tax dropped 54.44% to RMB 1.07 billion. • Profit attributable to owners of the parent slumped 59.20% to RMB 0.69 billion, translating into basic earnings per share of RMB 0.0708. • Net profit margin contracted to 12.93% from 27.89% a year earlier. • Operating cash flow reached RMB 3.33 billion (up 6.8%), but capital expenditure rose 66.60% to RMB 4.25 billion, turning free cash flow negative. • The board did not declare an interim dividend.

Cost & Capital Structure • Operating expenses increased 3.99% to RMB 4.18 billion, driven mainly by a 6.55% rise in depreciation and amortisation to RMB 3.10 billion. • Finance expenses edged up 2.94% to RMB 0.74 billion; the group’s blended financing cost stood at 2.31%, down 10 basis points from year-end 2025. • Total borrowings climbed 5.09% to RMB 72.97 billion, lifting the net gearing ratio slightly to 64.49%. • During the period the company issued three ultra-short-term debentures and four perpetual bonds, raising RMB 9.00 billion and refinancing higher-cost debt.

Operating Metrics • Consolidated installed capacity reached 19,857.55 MW (+4.14%). Wind capacity slipped 1.12% to 14,353.25 MW, while photovoltaic capacity grew 7.51% to 4,894.30 MW; new-type energy storage totaled 610 MW. • Power generation declined 10.79% to 16.60 TWh. Wind generation fell 13.51% as average utilisation hours dropped 171 hours to 967, reflecting weaker wind conditions. Solar generation rose 7.74% to 2.57 TWh, though utilisation hours dipped to 521 (-21 hours). • Projects under construction amounted to 4,005.28 MW; the group secured 5,218 MW of new project quotas across seven provinces.

Balance Sheet & Liquidity • Total assets stood at RMB 118.35 billion; cash and cash equivalents were RMB 3.74 billion. • Unutilised bank facilities totaled RMB 76.21 billion; registered but unissued corporate bonds amount to RMB 21.00 billion.

Strategic Priorities for H2 2026 Management plans to expedite key project commissioning—especially large wind-solar bases and direct green-power supply schemes—enhance trading strategies to mitigate tariff pressure, maintain strict safety and risk controls, optimise financing and cost structures, and advance technological demonstrations in energy storage and solar-thermal integration.

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