Huaneng Power International, Inc.

Good afternoon, ladies and gentlemen. On behalf of Suanen Power International, Inc., I would like to welcome you all to the conference call regarding the interim results announcement of 2026. Now, may I introduce the management of the company today? Executive Director and the President of the company, Mr. Liu Ancang. Hello, Mr. Liu. Good afternoon, everyone. Mr. Zhang Xianchong, the independent director of the company. Mr. Zhang Xianchong. Good afternoon, everyone. Mr. Wen Minggang, the chief accountant and the board secretary of the company. Mr. Wen Minggang.

Good afternoon, everyone. Good afternoon, everyone.

People in charge of the related departments are also joining us in this meeting. First of all, Executive Director and the President of the company, Mr. Liu, will review the business performances for the interim results of 2026, followed by the Q&A session. Now, I would like to invite the head of the company, Mr. Liu Ancang, to introduce the performance of the company, Mr. Li Guoyun, to do the English translation and translation. May we have the honor to invite Mr. Liu to review the business performances and Mr. Li Guoyun to conduct the English interpretation.

Ladies and gentlemen, good afternoon. Welcome to the China Energy International's mid-term performance recommendation call meeting in 2016.

Ladies and gentlemen, good afternoon. Welcome to the 26th Interim Results Conference with Huaneng Power International. We've already announced the operating results for the first half of 2026 yesterday, and now I'd like to give you a brief introduction.

The company struck a balance between tangible development outcomes as well as security and production.

our business both at home and abroad maintained stable, while witnessing steady progress in scientific innovations. We also accelerated our pace towards business transformation, which has paved the way for fulfilling our annual development goals.

According to Chinese accounting standards, in the first half of the year, the company achieved a combined revenue of RMB 1069.09 billion, which is a 4.57% decline. Calculating EnerChina's accounting principles, in the first half of this year, the company has realized a consolidated operating revenue of 106.91 billion yuan, decreased by 4.58% year-on-year.

The net profit, attributable to the company's shareholders, scaled to 6.69 billion yuan, decreasing by 28.89% yearly, and the ETS is now at 0.35 yuan per RMB.

In terms of electrical production, the company has continued to improve its green carpet transformation, wind power, lighting, and installation capacity. However, due to the increase in the number of new energy installations in the country,

In terms of power production, we actively promoted the low-carbon green energy transformation. The overall installed capacity of the company's photovoltaic and wind farms has seen a consistent growth. While the ungrid power sold has seen a year-on-year decrease, the capacity of renewables is growing rapidly nationwide and taking the share of coal-fired units in the energy mix.

In the first half of the year, the company managed to complete a total of 1,995.78 billion kilowatts of online power in each operating power plant, with a downfall of 2.97% on the same level. On average, the total power cost is 463.02 yuan per kilowatt-hour, with a downfall of 4.53%.

In H1, the company's domestic on-grid power sales decreased by 2.97% at 199.78 billion kilowatt-hours, and the average tariff was 463.02 yuan per megawatt-hour, decreasing by 4.59%. In terms of fuel supply, the company actively expanded its market plan and electricity prediction, dynamic adjustment, and electricity and coal purchase plan.

In terms of coal supply, we swiftly adjusted our goal purchase plan based on the solid research of coal market dynamics and the estimation of electricity consumptions.

The company has made multiple efforts in controlling the fuel cost, including strengthening the automation of high-quality long-term contracts and updating our strategies in making spot market deals. Besides, we also replaced the propulsion of coal from price surge to overseas market and optimized our dynamic control in coal inventory. The standard coal price of each line decreasing by 2.84% year-on-year at 891.02 yuan per can. 转型发展方面,公司坚持低碳转型的战略方向,科学安排工期,在确保安全合规,质价双优的前提下,全力推进项目建设。 The company always holds a strategy of low-carbon transformation. In the first half of this year, it has taken every effort propelling the construction of infrastructure.

In the first half of this year, the company has sold a strategy of low-carbon transformation. In the first half of this year, it has taken every effort propelling the construction of infrastructure. In the first half of this year, the company has sold a strategy of low-carbon transformation. In the first half of this year, the company has sold a strategy of low-carbon transformation.

We've added 2.55 gigawatts of renewable capacity out of 3.04 gigawatts in total this year by the end of June. All those newly installed capacity are with competitiveness, both in their quality and market bidding capabilities. Plus 490 megawatts newly installed gas-fired units The total input capacity and control now scale 159 gigawatts. Low carbon clean energy takes more than 42% in the chart. In terms of business overseas, we swiftly optimize our market bidding strategy based on the solid research of both Singaporean electricity market and fuel market, pursuing the best performance at our current conditions. In the first half of this year, 2S Power has realized an earning before interest and taxes of 745 million yuan. Sahiwal Plants in Pakistan keeps a stable operation as well, earning 451 million yuan.

In the second half of this year, 2S Power has realized an earning before interest and taxes During the last year,

Putting efficiency and quality first, we will push forward our costs in optimizing those power generation and assets portfolio, cementing the very foundation of energy security. In terms of the power generation, the company will level up our analyzation and demand-supply relation. We will find market strategy will shift our power generation curve for better efficiency at peak hours.

In terms of coal consumption, we will partly focus on the dynamics of coal market, safeguarding a stable supply while controlling the cost via multiple channels,

Improving the fulfillment of medium and long-term contracts, optimizing schedule and heat value while purchasing our domestic and international spot markets, and via better inventory management as well.

In the face of a complex market environment, the company will strengthen strategic leadership, continue to promote the development of new industries, and fully promote the completion of all kinds of target tasks throughout the year.

Studying on the starting points of the 15th Five-Year Plan, amid the complex market horizon and new requirements, TPA will reinforce strategic leadership to ensure better development quality and efficiency. It will secure the achievements of the four-year target while stepping up development of new programs, delivering an excellent prologue of the next Five-Year Plan. And now, my colleagues and I are willing to take your questions. 谢谢刘总的介绍。 接下来是问答时间。 Thank you, Mr. Liu. Here we come to the Q&A session.

如需提问,请在话题上按新意见等候。 先按信号键,再按意见。 To register your questions, please press star followed by 1 on your telephone keypad. Thank you. 欢迎各位提问。 也请各位在提问前告诉我们您所属的机构与姓名。 Please state your name and your organization before question is raised. 有请第一条问题。 The first question comes from 国金证券,江涛. 哎,好的,可以听到吗?

可以听到。 哎,好的,各位观众很好,我是国金证券公众煤炭的行业研究员江涛。 我有三个小问题想请教一下。 The first question is about DaShi Energy. I would like to ask about DaShi Energy's current power supply system. Considering that there will be a mass production this year, what is the level of power supply in the second quarter of this year compared to the power supply in the same period last year? If we look at the third quarter, how should we look at it? Will there be an additional decline in the performance of the second quarter? This is my first question. Then I will ask the second question together. The second question is that during the press conference, I also asked if there was a change in the level of marketization of the second-level marketization of the second-level marketization of the second-level marketization of the second-level marketization of the second-level marketization of the second-level marketization of the second-level marketization of the second-level marketization of the second-level

I have three questions. My first question goes to the 2S Power in Singapore. And I wanted to ask, what is the tariff mechanism in Singapore? And also in the second quarter of the year, what is the year-on-year change of the tariff and the power generation output of 2S Power? And going to the first quarter, how does the company optimize the performance based on this revenue in the second quarter? And my second question goes to... As I will say, raised the question in the conference call of the first quarter performance conference, and we wanted that based on the market-based transactions of thermal power generators and what is the profitability change quarter-on-quarter in the second quarter. And my first question goes to the PV sectors of the cooperation. How does the company view the profitability of the PV sector in the second quarter? We have seen a quarter-on-quarter increase and what is the expectation going forward? Thank you.

Thank you.

In the first quarter, in the first half of this year, Tuas Power has accomplished the 5.32 billion kilowatt-hours entire power generation output, which has saw a 49 million kilowatt-hour increase. And we have a Earnings Before Interest and Taxes increase of 618 million yen.

In the same period last year and now, it has dropped nearly 6.3% overall. So, the impact on our overall profit of the time-honored RMB is nearly 90 million RMB.

The first reason that triggered the year-on-year decrease is about the exchange rate. We have still a 6.3% year-on-year decrease in exchange rate from the Singaporean to RMB, which has a factor of profit of about 90 million RMB.

The second major impact is the inflation. Since this year, the Singapore government has increased inflation from 25 trillion to 45 trillion yuan. The second I want to argue is about the carbon dioxide tax in the Singaporean market.

The Singaporean administration has raised the tax rates from 25 grand to 45 grand, which has triggered about a 24 million RMB increase in terms of the expenditures on the carbon dioxide tax.

And the third reason is the margin has shown a year-on-year decrease as well, which is about 22% per NYL. Singapore's electricity price mechanism, as you just mentioned, is due to Singapore's energy production structure. 20% of it comes from the government's fixed contract. This part of the interest rate is relatively stable. Another 70% is due to some of the sales contracts we have signed with long-term customers. This part of the sales contract has a certain deadline. The price of this part of the retail contract is relatively stable. 10% of the electricity is from Singapore's line-of-sale market. Singapore's line-of-sale market is a completely competitive market. Its price increase level is completely related to the price of natural gas. The current market price is around 181 billion yuan in the beginning of this year, and it has grown to about 204. It is such a level, so it leads And as you mentioned about the price mechanism in Singaporean electricity market,

Now, the 2S Power has a contract that 20% of the electricity contract was signed with the government and authorities, which has a comparatively stable profitability. And another proportion, about 70%, which is a retail contract with a longer term, and that has a margin that connects it with the long-term contracts, it's gas and the financial tools as well. And then it's also comparatively, they don't compare with the spot market, And we also have 10% of the entire power generation output on the market, which was settled on the spot market. And that is fully public, which is with many competitions on the spot market. And the price was tightly connected with the gas price. And on the other hand, the gas price of Singaporeans' electricity market is connected with the GDN index in the International Oil Index. In the first half of 26, the The spot market price has raised from 181 yuan per megawatt hour to 2,240 Singaporean yuan per megawatt hour. But although the spot market price of electricity has shown a year-on-year increase, but the gas price has increased simultaneously, so the margin of Singaporean electricity market, especially the 2S power, has been decreased year-on-year.

I just mentioned that most of our contracts are locked through retail contracts. So because of the retail contract, we signed the retail contract in 25 years. It was basically in 23 or 24 years. At that time, the retail price of Singapore's electricity was relatively high in its offline market. So we have some retail contracts last year. The overall retail price is going to be good. So as the 26th year comes, there will be a large batch of this high-price retail contracts. This year, from the beginning of the second half of last year to the beginning of this year, the overall price of the entire retail market is relatively low. So it led to some of the contract interest rates that we signed later and a relatively large decline compared to the same level as last year. So it led to some unfavorable effects on our master's performance in the first half of this year.

As I mentioned, the majority of our contracts of electricity was settled by the retail contracts, and the price was locked. In the year of 2025, the contract was largely signed between the year of 2023 and 2024. At that time, the price of electricity on the spot market was comparatively high. But last year, so that triggers the better profitability and the better tariffs in the Singaporean tourist power last year. But this year, as the contract, the higher profit margin has been expired, and the newly signed contract on a spot market is based on the downward trend of the spot market tariffs. So that also triggers the decrease of our marginals, and that also triggers the year-on-year decrease in the first quarter of the year for the 2S power in Singapore.

随着今年上半年这个现货市场的价格在逐步的回升, Since the beginning of this year, Apple's price on the stock market seems to have survived.

And we also urge the two of us in Singapore to reconsider the contract with higher margin and to implement new strategies on the stock market to lock even more contracts with higher profitability, selling the foundation for a better profitability in the second half of this year and going forward. Thank you.

Hello. I will come back to your second question. In the first half of the year, the company's average sales volume was about 1,529,000. In the first of this year, the coal-fired units of the power have generated the electricity about 162.9 billion kilowatt-hour, as the medium-large contractor signed about 158 billion kilowatt-hour and takes about 84%. Bidding in the spot market for the co-part units

can improve its profitability. In the first half of this year, the co-partner of the company has realized a tariff of about 387 yuan per megawatt-hour on the market, and that is about 24 yuan per megawatt-hour increase compared with the median long-term contract-assigned price.

Hello, investor. Please allow me to answer your third question about the increase in the growth rate of the low-income economy. In the second quarter, the company's lighting profit is 9.89 billion yuan, and the net growth is 7.56 billion yuan, which is more than the net growth. This is mainly due to the increase in electricity in the second quarter of lighting. There are two factors in this. One factor is that the company's lighting installation is steadily growing under the low-carbon background of the company. I'd like to answer the quarter-on-quarter increase in terms of the profitability of the PV sectors of the company.

In the second quarter, the PV sectors of the company has realized the earning of 989 million yuan, which has been increased about 756 million, which is a large increase. And that is because of the power generation, the power output of the PV sector of the company has shown a quarter-on-quarter increase in the second quarter. And that is because during the recent years, Under the guidelines of low-carbon emission strategy initiatives of the country, we have a larger input capacity of PV sectors. And the second reason is about the seasonal reason, because the utilization hour in the second quarter is comparatively high.

In the second quarter, the power supply of Guangfu is 76.59, 1,020. Compared to the previous quarter, it increased by 21.93, 1,020. Guangfu is around 40%.

And the second reason is about the increase of the on-grid power cells. The PV sectors have scaled about 7.65 billion kWh on-grid power cells, which has a 40% increase equivalent to 2.19 billion kWh increase. Okay, thank you, everyone.

We have no other questions.

Welcome to the next question. The next question comes from Liu Xianza of Citibank.

Hello, everyone. I'm Liu Xianza of Citibank. I have three questions for you. The first problem is that in the first half of this year, the average online electricity price in China has dropped by about 4.6% to 463%. I want to know how much is the average electricity price in the first half of this year, and how much is the average electricity price in the second half of this year, and how much is the average electricity price in the second half of this year? The second question is about the cost of large-scale manufacturing. We also see that the cost of large-scale manufacturing in the second quarter should have a rebound in the first quarter. Maybe we are also affected by the Sino-US war. We know that Guangcheng City's cost of large-scale manufacturing this year should be higher than the second quarter or lower than the second quarter. I have three questions. My first question goes to the ungrid power sales of the thermal power plants.

We have saw a 4.6% decrease in the on-grid power tariff of the thermal power generation, which is at about 463 yuan per megawatt hour. And I want to know the tariff broken down by different energy types, including the thermal power generators, wind power, and PV sectors. And what about its year-on-year change? And what about the expectation of the company towards the tariff in the second half of this year? And my second question goes to the unit view cost of the company. And we have saw a unit view cost rebounded compared with the first quarter of the year and the second quarter of the year. And I believe that is mainly because of the geopolitical contradictions in the Middle East areas. And what does the company's expectation towards the unit view cost and its trends in the coming next half of this year? And my first question is, The company has set a goal for newly installed capacity in the year of 2026 at 7.7 gigawatts in total, and we have accomplished already in the first half of this year at 3 gigawatts. And what does the company view in the coming next half of this year, and does the company will change the four-year goal of the newly installed capacity? Thank you.

Hello, investors. Let me answer your first question about the share price. In the first half of the year of 2026, the share price of each machine was 445.26 yuan per 1000 watts. At the same time, the share price dropped to 26.21 yuan per 1000 watts. The share price dropped to 5.56%. The share price of the machine was 792.57 yuan per 1000 watts. At the same time, the share price rose to 49.86 yuan per 1000 watts. The share price rose to 6.71%. I'd like to answer a question about on-grid power towers. In the first half of the year of 2026, we have realized coal-fired units on grid-powered towers of 445 tons.

which has shown a year-on-year decrease of 26.21 RMPH, equivalent to 5.56%. In terms of the gas part unit, the Taurus was 792.57 RMPH, increasing by 49.86 RMPH, equivalent to 6.71% increase. In terms of wind turbine, We have an average tariff of 462.67 mWh, which has decreased by 16.69 mWh, equivalent to 3.48% decrease. 光伏的电价是370.44元每千瓦时,同比是下降20.83元每千千瓦时,降幅在5.32%。 水电的电价是361.40元每千千瓦时,

In terms of the PV farms, we have an average tariff of 370.44 yuan per megawatt hour, decreasing by 20.83 yuan per megawatt hour, equivalent to 5.32%.

In terms of HEPA power, the average charge was 361.4 gram per megawatt hour, increasing by 2.77 gram per megawatt hour. The percentage is about 0.77%. The biomass sector of the company has scaled 718.38 gram per megawatt hour and decreasing by 6.63 gram per megawatt hour, equivalent to 0.91%.

Hello, Mr. President. Let me answer your second question. In general, in the second half of the year, the fuel market is still relatively tense, and there will be a gradual rise in demand. In terms of supply, domestic coal has been affected by safe high-pressure inspections, and supply recovery is relatively difficult. The price of other markets is rising, and the long-term supply chain of long-term suppliers is declining.

I'd like to answer a question about the coal market going forward to the second half of this year, and we believe that the coal supply in the second half of this year will be tightened as well, and the supply will be slacked as well. In the demand side, the domestic output was constrained as the country is delivering a security inspection. And on the spot market, the price is comparatively higher recently. The suppliers of the long-term contract calls are not willing to fulfill their contract as well. In terms of the international market, as Indonesia has delivered its quota for the export and the delivery Middle East contradictions between the Iran and U.S. So it also increased the risk on the international spot market of coal.

In the next 100 years, due to the low storage, the overall supply needs will be further revived. It is expected that after the end of the climate crisis, if the overall consumption of various power plants exceeds the expected, the entire coal price will remain at a high level. If the storage is better than expected, This year, in the supply side, the average temperature is comparatively high, comparing with the same period of other years, and the tightened supply of logistic market.

as well as the security inspection in Shanxi province and other regions, we believe that the inventory is lower than the average of previous years. And going to the second half of this year, we believe that if the inventory is better than our prediction, so the coal price on the spot market will be better than our expectation. But if the inventory is comparatively tightened, we believe that that will support the comparatively higher price of the coal buyers of the coal in the spot market. We haven't adjusted our installment plan on the renewables for the four-year, and by the end of June, we have more than 10 gigawatts of entire installed capacity at Ener Construction, and that is able to support to fulfill the four-year goal.

So next, the question comes from of Industrial Equalities. Hello, everyone. I'm Xie Jiahao, a researcher at CME. I have three questions I'd like to ask. First, I'd like to ask about the situation of large-scale energy. We know that the high-power contract was signed in the early days, and it will have an impact on the energy of large-scale energy. I'd like to ask about the situation of high-power contracts, and how large-scale energy will be used in the future. Then the second small problem is that I want to ask about our financial indicators. On the one hand, we see that the income tax rate of our second quarter has been increased. Then I want to ask about this reason. Then there is the income tax rate of the follow-up. How do you look at it? Then there is also what kind of situation is our company's long-term plan for the future debt. The first question goes to the 2S Power in Singapore to the company. As we mentioned, the profitability of the 2S Power has been decreased because the contract with higher profit margin has been expired.

And I wanted to know that how many contracts is due in fulfillment with higher profit margin. And the second question goes to the tax rate in the second part of the year. So one of the reasons that why the company's tax rate has fallen a quarter-on-quarter increase and what about the expectations with the tax rate of the company. And what about the company's plan to return the perpetual down. And the first question goes to the federal co-price of the company. I wondered that the historical price of the company in the second quarter and in the first quarter respectively, and what is the quarter-on-quarter change? Thank you.

Let me answer your question about the big picture. As I mentioned, this year's profit decline is mainly due to some of the high-performance contracts in the previous period, which have been gradually delayed and updated. . . . . . And in terms of to us power and the profit margin has been decreased mainly because of the contracts and higher

Profitability and profit margin has been expired. And we have a 70% of the contract in Singaporean's market was signed for the retail customers, and that is including the customers in industries and in business circle. And those contracts are signing based on a rolling – based on a rollover signing basis. And in the first half of this year, for 2S Power, the average profit margin has shown a year-on-year decrease at 22 yuan for Singaporean current.

But now, due to the tension in the whole country's TNC for the first half of this year, the current market price in Singapore continues to rise. So for us, the future, in the future, the new retail contract is a good condition. So we are also in the hope that we will continue to revive the new retail contract in the future, so as to gradually improve our entire new and large-scale energy efficiency level.

But since the beginning of this year, and first off, the gas price worldwide saw a year-on-year increase and the supply was tightened. And that also supports the higher price in the spot market of electricity in Singaporean's market, which is conducive for us to sign a new contract and the fulfillment of new contracts that increase and expand our profit margins.

Hello, I would like to answer your question about the income tax rate. In the first half of 2020, the income tax rate of the company was 18.6%, and in the same period last year, it was 16.63%. It is also within the normal range of the income tax rate. The main reason for this increase is that the income tax of the 3.3.5% enterprise income tax I'd like to answer a question towards the tax rate of the company. In the first half of the year of 2026, the average tax rate of the company is 18.6%.

In the first half of 2026, that number was 16.63%. And that is within the regular range of the tax rates of the company. And that is mainly because of the following two reasons. The first is that we have a different policy in terms of different plans, in terms of this taxational preferential policies. And the second is because the DDA and DDL of the company.

Let me answer your question. The third one is related to Power International, Inc. In terms of the standard coal price of the company in the first half of 2026, the average of the company scaled about 891.02 yen per 10,

which has shown a year-on-year decrease of 26.03 gram per tonne, equivalent to 2.84%. In terms of the coal-fired units specifically, the coal-fired units have a standard coal price of 832.67 gram per tonne, decreasing by 16.33 gram per tonne, which is equivalent to 1.92%. The gas-fired units have a standard coal price of 2,057.19 gram per tonne, decreasing by 96.96 yuan per 10, equivalent to 4.5% decrease. In terms of the biomass sectors, the company has a numerical price of 839.58 yuan per 10, decreasing by 53.44 yuan per 10, which is equivalent to 5.98% decrease. Thank you. Hello, Chairman Zhou. I would like to answer about the future of the Yongxu债的未来偿还计划方面。

In terms of the perpetual balance payout plan,

And by the end of the first half of 26, we have a $73.47 billion of perpetual balance in the company, which has sort of decreased of $4 billion RMB. And that is because we have rescheduled our insurance plan. We anticipated that by the end of the year of 2026, the scale of our perpetual balance will keep comparatively stable.

I'd like to ask you about the unit fuel cost. Do we have a quarterly calculation of the unit fuel cost?

Power International, Inc. Power International, Inc. Zeng Fu Zeng Fu Zeng Fu Zeng Fu Zeng Fu Zeng Fu Zeng Fu

And in the second quarter alone, we have an average unit fuel cost of 281.03 gram per megawatt hour, which has a quarter-on-quarter increase of 35.7 gram per megawatt hour, equivalent to 14.56%. In terms of coal-fired units alone, it has an average unit fuel cost of 269.92 megawatt hour, which is a quarterly increase of 36.03 gram per megawatt hour, increasing by 15.4%. In terms of gas-fired units, we have a unit fuel cost of 443.82 yen per megawatt hour, a quarterly increase of 68.41 yen per megawatt hour, equivalent to 18.22%. In terms of the biomass sector, we scaled a unit fuel cost on average of 372.32 yen per megawatt hour, a quarterly increase of 89.60 yen per megawatt hour, equivalent to 31.69% increase. Thank you.

The next question comes from Song Yingming of Channel 250. Hello, everyone. Thank you for your question.

My name is Song Yingming. I have three questions to ask you.

The first one is about the overall annual long-term ratio of coal power. Because just now the company leader has shared that one of our long-term deals here is about 84% of coal-powered long-term power. Then I would like to ask specifically about the annual long-term ratio. Then if there is a division about the province, I would like to ask about the annual long-term ratio of Jiangsu and Zhejiang, which I do not know if there is a division. This is the first question. Thank you.

Well, I do have three questions. My first question goes to the electricity long-term contract signed. How many electricity long-term contracts are signed in both the coal-fired units of the company, and how many long-term contracts were signed yearly? And as you mentioned, we have 84% of near long-term coverage ratio, and how many are signed yearly? And if we have a provincial... If we have a... And what about the yearly contract coverage ratio by province, especially in Zhejiang province and Jiangsu province? And the second question also goes to the 2S power and about the tourist mechanism of 2S power in Singapore. And what is the signing cycle for the long-term contract to the final users or end users in Singaporean electricity market? contract assigned between the company and the end users was fixed by its profit margin or fixed by TARs. And my first question goes to the net profit broken down by different energy types in the second quarter of the year. Thank you.

In terms of the price of our retail contract, the corresponding contract price is actually the same as the current market price. However, in the process of production and operation, after the contract of the retail contract is signed, we will sign a long-term contract with Tiananmen Square . . . In terms of the 2S Power's electricity selling contract, the contracts were signed with those end users, so we do not have a fixed cycle of signing those contracts, but

But the signing price of the long-term contract has a mechanism that the price is tightly connected with the electricity average price on the spot market. And we also use the gas long-term contract as financial tools to lock our profit margins as well. So in a year, the price on the Singapore electricity spot market is comparatively low. The gas fire, the gas long-term contract is not that effective. So just in the year of, and only in the year that the spot market tariffs is comparatively higher, and just like the year of 2022 and the year of 2023, and that will ensure a comparatively higher profitability of the company. Thank you.

Hello, Mr. Wu. I would like to answer your question about the disbursement of the normal period. And in terms of the long-term contract, need a long-term contract of electricity, for the coal-fired units, we have to find a need long-term contract of about 128 billion kilowatt hour, and the yearly contract would take about 58%. In Zhejiang Province, the yearly signed contract is comparatively higher, which is around 75%. In Jiangsu Province, the proportion is around 60%.

Hello, Mr. President. Let me answer your question about the division of the net profit. In the first half of 2020, the net profit of each machine was 48.71 billion yuan. In comparison, it dropped by 11.18 billion yuan and fell by 18.66%. The profit of the combustion machine was 7.07 billion yuan. In comparison, it rose by 1.80 billion yuan and increased by 34.22%. The profit of the wind turbine was 27.29 billion yuan.

In terms of the net profit broken down by different energy types, in the first half of the year of 2026, the cohort units of the company has realized a net profit of 4.87 billion RMB, which is a 1.18 billion decrease, which is equivalent to 18.36%. The gas-fired unit has a net profit of 707 million, which has increased about 180 million, equivalent to a 34.22% increase. In terms of the wind power generator sector, we have a net profit of 2.73 billion, which has decreased by 704 million RMB, equivalent to a 20.5% decrease. Guangfu is 10.64 billion yuan.

In terms of the PV sector, we have a net profit about $1.06 billion, which has decreased by $594 million, equivalent to a 35.84% decrease.

And the hydropower has a 44 million margin, which is increasing about a 31 margin. And the biomass is pretty even.

Thank you.

The yearly contracts of the medium-long-term contracts takes 58% of the entire medium-long-term contracts. Thank you.

The next question comes from Shunhui Jian of Oriental Securities.

Hello, everyone. I'm Sun Weixian from Dongfeng Central Hospital. I have three questions to ask you. The first one is, what is the level of the capacity of a power supply in the second quarter? And the second one is, what is the situation in the second quarter, or in the first half of the year, in terms of the loss of power, wind, and light? I have three questions. My first question goes to the capacity-based subsidy in the second quarter of the coal-fired unit, and my second question goes to

in the second quarter and in the first half of the year respectively, how many plants of thermal power generators and PV sectors and wind sectors have made a loss? And my third question is about the net profit attributable to the company's shareholders breaking down by different energy types. Thank you.

Hello, Mr. President. I would like to answer your question about the cost of solar energy. Over the past few years, The demand for power generation in various regions has increased to more than 50%. In the first half of this year, the power generation cost of the coal-fired machine was about 7.4 billion yuan, and the power generation cost was about 4.8 billion yuan, which was about 1.7 billion yuan higher than the same period last year.

In the first half of this year, the capacity-based subsidy policy has been changed. In many provinces, based on the regulation of number 136, the capacity-based subsidy was improved to no less than 50%. And in the first half of this year, we have a capacity-based subsidy receipt in total around 7.4 billion RMB yuan, equivalent to 48 yuan per megawatt hour, which has an year-on-year increase of 70 yuan per megawatt hour.

投资者,您好,我来回答您有关第二和第三个问题。 第二个问题是分板块的亏损面。 2026年上半年,公司燃煤亏损是12家, 占公司整体燃煤数量是16%左右。 By the end of the first half of the year,

of coal-fired power generators have made a loss equivalent to 60% of all the power generation plants of the company. In the gas-fired units, four plants have made a loss, which takes about 25%. The wind power generation units have 11 farms made a loss, which is equivalent to 8.8%. The PV sector, 44 farms have made a loss equivalent to 11%.

The net profit of the third division is 12.04 billion yuan. The return is 24.63 yuan. The downfall is about 67%. The net profit of the second division is 0.32 yuan. The return is 7.71 yuan. Power International, Inc. Power International, Inc. Power International, Inc.

In terms of the nonprofit attributable to the company's shareholders, in the second quarter of the law, the co-partners of the company have made a nonprofit attributable to the company's shareholders, which is about 12.04 billion yen, which is a quarter-on-quarter decrease of 24.63 billion yen, equivalent to 67% decrease. The gas-fired units have made a loss of 32 million yen, which is a quarter-on-quarter decrease of 771 million yen. The wind power generators have made a contribution of 177 million yen, which is also a quarter-on-quarter decrease of 374 million yen, which is equivalent to 24%. The PV sector has made a contribution of 871 million yen, a quarter-on-quarter increase of $677 million, equivalent to 35 times the net profit in the first quarter of the year. And Hypo Power has made a contribution of $43 million then, equivalent to a $43 million increase as well.

I also want to ask that we have a 12 months of coal-fired units has made a loss. I wonder about the geopolitical distribution and the reason that the company has made a loss. Thank you.

The plants that made a loss in the first half of 2026, the coal-fired units, the plants in Liaoning and in northwest China, as well as in Hubei Province have made a loss. And for gas-fired units, the Hainan has made a loss. And that is triggered because of that the tariff of solar decrease as well as the increase of unit fuel cost. Thank you.

The next question comes from Jiang Yuching of COFC. Hello, can you hear me?

Can you hear me now? Yes, we can. Hello, everyone. I'm Jiang Yimceng, a researcher at the Center.

Thank you for giving me the opportunity to ask a few questions. I have a few more questions to ask. One is about the coal purchase structure. Can the company help to separate the ratio of our long-term stock and imported coal purchase in the second quarter, including the price of each one?

The second is to ask if the company has any statistics on the price of this year's record, and is there a possibility of a cost contribution in this area? I have three questions.

The first question goes to the coal purchase mechanism of the company in the second quarter of the law, and how many coal are purchased via the long-term contract and those from the stock market as well as the markets from overseas? and what about their price, respectively? And the second question goes to the depreciation this year of the coal-fired units, and will that save some costs or expenditures by the end of this year? And my first question goes to the second quarter alone, and how many ancillary services revenue has received by the company? Thank you.

In the second quarter, the domestic long-term retail price is 907.56 yuan per ton, with a ratio of 44.5%. The domestic line-up is 958.66 yuan per ton, with a ratio of 30.72%. The imported retail price is 998.01 yuan, with a ratio of 24.78%.

In the second quarter long, the long-term contract has covered the entire consumption of 44.5%, and the standard call price of long-term call is around 907.56 yuan per 10. Those from the spot market takes the share of 30.72%. The standard call price of spot market call scales 958.66 yuan per 10, and those from overseas market takes 24.78% of the share, and the center comprises those from overseas, scales 998.01 yuan per ton. Hello, Professor.

I would like to answer your second question, which is about the issue of rescuing those who have passed away. Indeed, there are some companies that have not been able to do so due to the impact of rescuing those who have passed away and then the reduction of rescuing and the release of profits. In the first half of 2026,

The coal-fired unit depreciation has delivered a contribution in the company's revenue as much as some of the coal-fired units have finished its depreciation cycle. By the end of the first half of the 2026, the coal-fired unit depreciation has saved the company's expenditure around... with 393 million RMB year-on-year.

Thank you.

In the first half of this year, we have some year-on-year decrease in the revenue from the ancillary services. In the first half of this year, we received the revenue from the ancillary services, which is around 530 million RMB year.

The reason for this decline is mainly because in recent years, most regions across the country have already realized the continuous operation of power line goods. In the area of continuous operation of line goods, the market is through this perfecting this market rule and widening this limit to lead to the realization of wind control function. So there is no longer a single wind control market.

Since the beginning of this year, the country has introduced the relevant regulations, and that has implemented or introduced the spot market mechanism in more and more areas and provinces, and that triggers that the peak and load management no longer exists. Thank you.

Thank you, Duoling. I have another question.

Hello, I'm Gary Zhang from the U.S. Bank of America.

I would like to ask the first question. We have just mentioned the price of coal-fired electricity. Is there a difference between the price of coal-fired electricity and the price of coal-fired electricity? The second question is that the leader mentioned at the beginning that he hopes that our power generation will match more and more in the peak time. I would like to emphasize what our specific strategy is. What is our attitude towards Chu Nong now? In the recent planning, it also mentioned a demand for a new output. This company will have a different idea for this allocation or multi-asset. Can you share with us? There is only one question that I would like to ask about Tai Chi. Because this year, I saw some pressure on profits in the first half of this year. Maybe there will be some declines all year round. Will it be for the Tai Chi rate or an absolute value? I have three questions.

My first question goes to the tariffs of the coal-fired units of the company. And so the company has a broken down by different contract types, including the long-term, medium-long-term contracts of electricity price and those from spot markets, especially those from the yearly contracts and the monthly contracts and the year-on-year change as well. And my second question goes to that of the The chief executive officer of the company has mentioned that we'd like to generate even more power at peak hours to improve the company's profitability. And what is the company's specific strategy towards that? And what's the company's expectation towards electricity storage plants as the country and the relevant documents are encouraging that? The first question goes to the dividend dispatching plan of the company. And we have saw by the end of the first half of this year, we have saw a downward pressure of the company's revenue. And what about the company's anticipation towards its dividend dispatching ratio and earnings per share in the year of 2026? Thank you.

Hello, President. We just answered the question about the dividend dispatching ratio in the first half of this year.

And we have offered you the need on long-term contract, the finding price of the first half of this year, and the quarterly data I will give you after this conference. Thank you.

Thank you. According to the document number 136, the electricity storage is not the prerequisition of the construction of the renewable project. According to that policy change, it also triggers that in our country, the strategy for constructing electricity storage is transitioning to a more market-based mentality. So the efficiency of those electricity storage plants has become the very important factors when we are delivering that.

By the end of the June, we already have about 802 megawatts equivalent to 1,661 megawatt hours of electricity storage plants have already entered business operation. Those electricity storage and construction have scaled 653 megawatts, equivalent to 1390 megawatt-hours. Going forward, we are delivering this electricity storage construction plan based on different local conditions, including those conditions in the electricity market as well as the demand side of electricity. We believe that this mentality is responsible for the quality of both the storage capacity itself and our shareholders. Thank you.

Hello, I would like to answer your question about the division of the red card. The division of the red card has always been a very important job for the company. The company has always been strictly following the rules of Zhang Cheng to design the division of the red card plan. In terms of the development of the company and the demand for normal company capital development, there are more than 50% of the profits that can be allocated.

We always highlight the dividend dispatching plan, and we're also delivering those dividend dispatching plans based on the articles associated with the company. And we want to strike a balance between the company's financial need as well as the development plan. And the dividend dispatching ratio is no less than 50%, according to the articles of the associate.

In 2025, the company's per share increase is $0.04, compared to the previous year's $0.02 increase. In the year of 2026, we have dispatched the dividends at 0.4 yuan per share, which is increasing about 50% compared with the 0.27 yuan

Due to time constraints, we will have the last question.

Due to time constraints, we have the last investor to ask. The last question comes from Wang Wenjia of Huatao Security. Please go.

Thank you very much for this opportunity.

The first thing I would like to say is that we have just disclosed I want to confirm the ratio of Zhejiang and Jiangsu that I just mentioned. The share is the annual long-term share, and the share is the total value. This is my first question. And then my second question is that I would like to ask, I don't know if it is convenient for the company to help us share June or July of 2026, our U.S. power supply situation. And then my third question is, Thank you.

I have three questions, and the management has introduced the coal-fired unit electricity contracts of coal-fired units of a company that he has the first of this year, and I wonder that what is the proportion of the yearly contracts and monthly contracts and spot market contracts and its price, respectively? And you mentioned that the Zhejiang and Jiangsu provinces have both a larger proportion of the contract signing ratio in the medium-long-term contracts, We wanted to ask how does the company calculate that number and what is the denominator in this fraction? And the second question is I want to know that in the year of 2026, what is the standard coal price of the coal-fired units in June and July, respectively? And thirdly, I want to know something about the company's 15th five-year plan. And is there some information that is ready for disclosure around the company's 55-year development plan? Thank you.

The denominator of the fraction is the median long-term contract, and we calculated that share of the median long-term contract. About those signing price respectively, those contracts if signed yearly is around 360 yuan per megawatt hour.

The signing price of monthly contracts is a little higher compared with those signing annually, which is around 366 yen per megawatt hour. 关于这个江苏和浙江,江苏和浙江的这个中长期的价格,江苏是在335左右,浙江是在345左右。 In terms of the medium long-term contract price of electricity, in Jiangsu Province, the price is around 335 Yen per meter per hour. In Zhejiang Province, 345.

In these two areas, the company's coal-fired machines can basically be pre-purchased through the supply and demand. Jiangsu's price is slightly higher.

In those two processes, the co-part units of the company can expand its revenue on the spot market, and Jiangsu is better.

Hello, investor. I would like to answer your question about the entry-level unit price. The company does not have monthly entry-level unit price data, but I will share with you our quarter data. In the second quarter of the first half of 2026, the comprehensive entry-level unit price of the company The price is 907.20 yuan per ton. The return rate is 33 yuan per ton. The increase is 3.77%. The average price is 855.79 yuan per ton. The return rate is 47.26 yuan per ton. The increase is 5.85%. The burn rate is 2013.33 yuan per ton. The return rate is 83.45 yuan per ton. The return rate is 4% or so.

In terms of the question about the standard core price broken by month, we do not have the specific data monthly, but I want to show you the standard core price in the second quarter of the year. The standard core price of the company has scaled 907.20 yuan per ten in the second quarter, which is a quarterly increase by 33 yuan per ten, equivalent to 3.77%. The coal-fired unit respectively has a standard coal price of 855.79 yuan per ton, a quarterly increase of 47.26 yuan per ton, increasing by 5.85%. The gas-fired unit scales at 2,000 at 13.33 yuan per ton, a quarterly decrease of 83.45 yuan per ton, equivalent to 4% decrease. Thank you.

About the company's 15th five-year plan, we will also highlight the quality and efficiency of development, just like what we did during the 14th five-year plan period. Thank you. We will continue to serve the National Secondary Strategy of Energy Power, Energy Safety New Strategy, and other series of National Secondary Strategies, and on this basis, deepen the green low-carbon transformation.

We will deepen our green energy transformation based on the support towards the country's strategy, including the energy superpower and as well as the energy security.

Specifically, in terms of three aspects, the first is the electricity sector.

The first is about the coal-fired units. We are expanding our input capacity while tracking the balance between the green energy transformation as well as the power output. Expanding the input capacity of coal-fired units equivalent to delivering a larger and more efficient plant and replace those outdated plants.

控电量指的是要顺应煤电向调节性电源转变的趋势, 接受利用小时的结构性下降的现实。

In terms of controlling the power generation output, we need to accept the trend, the downward trend of the average unit fuel cost of the fuel coal-fired units and transitioning those coal-fired units into ancillary services oriented generators. Implementing the energy transformation of the coal-fired unit equivalent to we need to promote the new technologies in our coal-fired units as well as embrace the industrial revolution.

In terms of the renewables, we want to

We want to improve the development quality of renewables by the means of developing those outstanding plants, including those offshore wind turbines in deep and far seas.

The third is in the industrial sector. We want to improve the development quality of renewables by the means of developing

Third is we want to embrace the strategic new industries and based on this IRR threshold of the company, including the new strategic development and the new strategic programs, including the storage of electricity as well as the clean thermal supply plants.

And I also want to argue that we're still drafting our specific 16th five-year plan based on the country's regulations and those documents from administrations, as well as the 15th five-year plan of the entire CHMG group.

And when the 55-year plan of the companies are ready, we will deliver that to the market in our disclosures.

Thank you. Thank you so much for all the questions and participation today. Finally, Mr. Liu would like to give us a summary.

Thanks for joining us today in this conference call. We always appreciate your long-term support to Huaneng Power International.

Now, this marks the end of today's conference. For any further inquiry, please feel free to contact with our IR team. See you this fall.

Thanks again for your attendance of the conference call regarding the interim results announcement of 2026. We are looking forward to meeting with all of you in our next results announcement. Thank you.