Huaneng Power International, Inc.

H1 2026 consolidated operating revenue was RMB 106.91 billion, down 4.58% year over year. Net profit attributable to shareholders was RMB 6.59 billion, down 28.89% year over year, and EPS was RMB 0.35. Domestic on-grid power sales were 199.78 billion kWh, down 2.97%, and the average domestic tariff was RMB 463.02/MWh, down 4.59%. Standard coal price in H1 was RMB 891.02/ton, down 2.84% year over year. By business, Tuas Power posted EBIT of RMB 745 million and Sahiwal earned RMB 451 million. For the full year, management said it has not adjusted the 7.7 GW new installed capacity target and said more than 10 GW is under construction.

Management’s tone was constructive despite the weaker earnings, emphasizing stable operations, faster transformation, and a focus on energy security and efficiency. The CEO said the company is balancing development with safety and production while accelerating low-carbon transition and business transformation to support annual goals. He also framed the next stage as higher-quality growth under the upcoming Five-Year Plan, with renewables, storage, and cleaner thermal assets playing a larger role.

The CFO highlighted that H1 net profit was RMB 6.59 billion, down 28.89%, against revenue of RMB 106.91 billion, down 4.58%. He pointed to a H1 average tax rate of 18.6% versus 16.63% previously, citing different plant tax preferences plus DTA/DTL effects. He also said perpetual bonds stood at RMB 73.47 billion at the end of H1, down RMB 4 billion after rescheduling issuance, and expects the scale to remain relatively stable by year-end.

Analysts focused on Tuas Power, thermal power profitability, PV earnings, coal costs, capacity additions, tax, perpetual bonds, and dividend policy. Management said Tuas Power’s H1 margin declined due to FX, Singapore carbon tax rising from SGD 25 to SGD 45, and a lower margin environment, but noted the spot market is still helping new contract pricing. On PV, management said Q2 PV earnings were RMB 989 million, up RMB 756 million quarter over quarter, driven by higher output and seasonality. On capital returns, management reiterated a dividend payout ratio of no less than 50% under the articles and said 2026 dividends were RMB 0.4/share, up 50% from RMB 0.27/share in 2024.