Huaneng Power International, Inc.

Q3’26 headline results (IFRS): revenue down, profit down sharply - Consolidated operating revenue: CNY 165.85bn, -4.12% YoY - Net profit attributable to shareholders: CNY 7.82bn, -47.29% YoY - EPS (end of Q3): CNY 0.39 - Investor takeaway (bad/surprising): despite “operational effort,” earnings fell much faster than revenue—margin pressure is the core story.

Power generation & tariff pressure from renewables/hydro + coal/spot dynamics - Mainland on-grid electricity sold: 312.9bn kWh, -5.6% YoY - Avg on-grid tariff: CNY 467.63/MWh, -2.32% YoY - Management attributes volume/tariff softness to: renewables & hydro generating more (market share shift away from coal) - Coal cost management helped but did not fully protect profits.

Coal-fired performance: still profitable in Q3, but losses are widespread and contract mix matters - Q3 coal-fired on-grid tariff (given): ~CNY 465/MWh - Q3 coal-fired mid/long-term contract coverage: ~60% of signed mid/long-term contracts - Loss-making incidence (negative): in Q1, 43.7% of coal units made losses and this increased QoQ by ~10pp (used by management to illustrate stress). - Coal standard price (Q3): ~CNY 933.4–933.55/ton (tax excluded/with similar figure) - Coal procurement: long-term contract coal ~40.79% of total coal consumption in Q3; Jan–Sep mid/long-term coal ~43.8% - Investor takeaway: coal plants are not uniformly profitable; profitability depends heavily on region/unit condition and the ability to pass through fuel cost via tariff mechanisms and contract terms.