Qianyuan Power's electricity generation increased profit by 1.75 times, interest-bearing debt decreased by over 1.5 billion, and financial expenses were reduced.

Yangtze Business Daily report ●Yangtze Business Daily reporter Shen Yourong

When sweet rain fell from the sky, Qianyuan Electric Power (002039.SZ) became a beneficiary.

According to the latest disclosed annual report, in 2025, Qianyuan Electric Power achieved operating revenue of nearly 3.3 billion yuan, up about 70%; profit attributable to shareholders was 0.6 billion yuan, up about 1.75 times.

The company’s operating performance in 2025 is the best level in Qianyuan Electric Power’s 21-year listing history.

Qianyuan Electric Power mainly engages in hydropower development and operations. In recent years, it has also expanded into new energy power generation, including photovoltaic (PV) power. The core factor behind the record-high operating performance in 2025 is a substantial increase in electricity generation.

In 2025, Qianyuan Electric Power’s generation volume was 12.12 billion kWh, up about 72%. The main reason for the large increase in generation is above-average inflows of water, which grew by 45% compared with 2024.

In addition to the sharp rise in operating performance, with its position in the heavy-asset sector, Qianyuan Electric Power’s financial condition has also improved significantly. As of the end of 2025, the company’s interest-bearing liabilities were about 6.0 billion yuan, down more than 1.5 billion yuan from the end of the previous year. At the same time, the company’s finance costs have continued to decline.

Qianyuan Electric Power adopts a prudent dividend policy. In 2025, the company planned to distribute cash dividends of more than 200 million yuan. The dividend payout ratio was 34.91%, remaining around 30% for four consecutive years.

Generation surges; operating performance hits record highs

Qianyuan Electric Power achieved the best operating performance in its history.

The annual report shows that in 2025, Qianyuan Electric Power achieved operating revenue of 3.29B yuan, up 69.98%; profit attributable to shareholders was 0.6 billion yuan, up 175.02%; and profit after deducting non-recurring items was 598M yuan, up 153.16%.

Qianyuan Electric Power was listed on the Shenzhen Stock Exchange in 2005. Over the past 21 years, the company’s operating performance has seen clear fluctuations.

In terms of operating revenue, in 2005, the company’s operating revenue was 354 million yuan. After three consecutive years of fluctuation around the 300-million-yuan level, in 2008 operating revenue reached 723 million yuan, up 135.24%. From 2009 to 2013, operating revenue continued to fluctuate. In 2014, operating revenue saw a historic breakthrough for the first time exceeding 2 billion yuan, reaching 300M yuan. From then through 2024, over these 11 years, the company’s operating revenue has remained in the vicinity of 2 billion yuan.

For profit attributable to shareholders, in 2005 it was 47 million yuan; in 2006 it was a loss of 35 million yuan; in 2007 and 2008 it was 17 million yuan and 121 million yuan respectively; in 2009 it fell again to 34 million yuan. From 2010 to 2013, it was 65 million yuan, -84 million yuan, 137 million yuan, and -99 million yuan respectively, showing significant volatility. From 2014 to 2024, although profit attributable to shareholders also occasionally fluctuated, overall profitability capacity clearly strengthened compared with before 2014. Over these 10 years, the lowest annual profit attributable to shareholders was also at least 130 million yuan, and the highest was 444 million yuan, occurring in 2020.

Over the 20 years from 2005 to 2024, Qianyuan Electric Power’s profit attributable to shareholders and profit after deducting non-recurring items were not greatly different, indicating that the company’s profit attributable to shareholders basically came from its main business.

Qianyuan Electric Power mainly engages in the development, construction, and operational management of hydropower plants, and has also laid out a photovoltaic power generation business. However, the core business is still hydropower. Hydropower is highly related to weather conditions, and this is also the main reason for the company’s performance fluctuations.

In 2025, Qianyuan Electric Power’s operating performance hit a record high, which is also related to rainfall.

According to disclosures, in 2025, inflows for Qianyuan Electric Power were about 45% more than in the same period of the previous year, and corresponding generation volume rose significantly. The company’s full-year generation volume was 12.12 billion kWh, up 71.90%. Of this, hydropower generation was 2.15B kWh, up 80.89% year over year; and photovoltaic generation was 668 million kWh, down 7.19% year over year.

Net operating cash flow up 94% to 2.4 billion

While operating performance hit record highs, Qianyuan Electric Power’s financial condition improved markedly.

Qianyuan Electric Power is Guizhou province’s only listed power company under China Huadian Group. It is committed to stepped development of hydropower resources in the “Two Rivers and One Lake” (Beipan River, Furong River, and Sancha River) within Guizhou, with most major plants achieving the “remote centralized control” target required by hydropower efficiency improvement plans. By building a centralized control system, it provides technical support for optimizing dispatch and remote control of stepped cascade power stations in the basin, based on the centralized control system.

Qianyuan Electric Power’s power plants have achieved complementary hydropower and solar (water-solar complementarity). In 2020, Qianyuan Electric Power successfully bid and secured three photovoltaic power projects—Guangzhao, Mamyajiang (Mamayagawa), and Dongqing (totaling 750MW)—in the Beipan River basin. These were included in the scope of the 2020 national bidding subsidy program. In mid-to-late December 2020, they were connected to the grid and began generating in sequence, achieving the “three firsts,” namely: building the country’s first basin-scale stepped hydropower-solar complementary renewable energy base; having the largest scale among China Huadian’s photovoltaic bidding competitive allocation projects; and having the largest single-unit installed capacity in Guizhou Province. It also achieved the “three most,” namely: the shortest commissioning time for the 500kV booster station; the highest voltage level; and the mountain-region photovoltaic project with the greatest construction difficulty among projects of the same scale nationwide.

In recent years, Qianyuan Electric Power has relatively few new investment and construction projects. As of the end of 2025, the company’s total installed capacity put into operation was 3.9731 million kW, including hydropower plant installed capacity of 3.2335 million kW and photovoltaic power plant installed capacity of 0.7396 million kW.

With fewer newly invested and constructed projects, combined with sustained profitability, Qianyuan Electric Power’s financial condition has continued to improve.

At the end of 2013, Qianyuan Electric Power’s asset-liability ratio had once as high as 80.32%. After 10 years of continuous decline, it was 58.56% at the end of 2023, falling below 60% for the first time. At the end of 2024 and at the end of 2025, the asset-liability ratios were 56.14% and 48.85% respectively, further decreasing, and at the end of 2025 the company reached a historical low.

Since listing, Qianyuan Electric Power’s operating cash flows have continued to net inflow. From 2021 to 2024, they were 11.45B yuan, 1.31B yuan, 1.95B yuan, and 1.81B yuan respectively. In 2025, the company’s net operating cash flow was 1.26B yuan, also setting a historical record high, up 93.63% year over year.

Finance costs, which are somewhat related to this, were 215 million yuan in 2025, the lowest level in the past 10 years. In 2015, the company’s finance costs once reached as high as 786 million yuan, and then declined continuously thereafter.

In 2025, Qianyuan Electric Power’s interest-bearing liabilities decreased significantly. At period end, the company’s interest-bearing liabilities were 2.43B yuan, down 6.01B yuan from 7.53B yuan at the end of the previous year.

In full-year 2025, Qianyuan Electric Power’s cash dividend amounted to 210 million yuan, setting a new historical high. The dividend payout ratio was 34.91%, continuing to remain above 30%, and it was the highest since 2017.

Editor in charge: ZB

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