The year 2025 has marked a critical juncture between the conclusion of the 14th Five-Year Plan and the inception of the 15th Five-Year Plan. Standing at this pivotal historical moment, China Power deeply embraced the new development philosophy in light of a global wave of energy transition and the comprehensive advancement of Chinese modernization. We have aligned our strategies with the nation’s Dual Carbon goals. With foresight, we have recognized the strategic direction outlined for the 15th Five-Year Plan period, which aims to accelerate the construction of a new power system and build a strong energy nation. Our development focus has firmly centered on green and low-carbon energy, and we have made significant efforts to accelerate the establishment of a new power system while unwaveringly pursuing a path of high-quality development. Aware of our mission to strengthen the foundation of our Company while serving the national strategy, we remain steadfast in our original aspiration to promote China Power’s sustainable development.
Advancing with the Momentum to Shape a Greener Energy System
China Power fully implements the Balanced Growth Strategy, establishing itself as a leading platform for comprehensive clean energy1 industries. By adhering to the simultaneous promotion of new energy, coal power, and hydropower, we have continuously optimized our energy structure and consolidated our advantages in the clean energy sector. By the end of 2025, the proportion of China Power's consolidated installed capacity of clean energy has surged to 82.07%, reflecting an increase of 1.95 percentage points compared to the same period last year. Additionally, revenue from clean energy has accounted for 64.51%, underscoring the effectiveness of our green transition, which is fundamentally reshaping our business towards clean energy.
We steadily advance the development of our clean energy business. During this reporting period, the Company has established a model of “new energy coupled with coal power”, which has laid a solid foundation for the stable consumption of large-scale renewable energy. We have actively promoted multiple models, including integrated Wind-Photovoltaic-Thermal-and-Storage, Source-Grid-Load-and-Storage, Hydropower-Photovoltaic Complementary, the Complementarity of Fishery and Photovoltaic Power Generation as well as Direct Supply of Green Electricity, thereby setting a benchmark in key areas. Notably, part of the capacity from the Integrated Wind-Photovoltaic-Thermal-and-Storage Demonstration Project of CP Pu’an has been connected to the grid, exemplifying a new paradigm of intelligent dispatch. Additionally, the China Power Shenhuo Mulei 800 MW captive green power substitution wind power project has been successfully put into operation, establishing a standard for Direct Supply of Green Electricity. Concurrently, we have advanced clean and efficient coal power technologies, employing the world’s leading ultra-supercritical single reheat technology to facilitate the high-standard transformation of supporting power sources. The Company has completed the direct control of SPIC Hydropower2, thereby fully leveraging its advantages in core business areas such as air pollution control, water treatment, solid waste disposal, and new energy environmental protection projects, which has created significant synergy with our existing clean thermal power operations.
We focus on innovation in new energy technologies. China Power continues to increase R&D investment, concentrating on breakthroughs in core technologies and digital and intelligent transformation, to accelerate the conversion of scientific and technological achievements into productive forces. During the reporting period, XYZ Storage, a subsidiary of the Company, has realized dual breakthroughs in intelligent energy storage technology research and development and market expansion, with its implemented project capacities ranking among the highest nationally. The subsidiary has successfully launched a variety of new energy storage products and core control systems, receiving multiple industry awards in recognition of its efforts. Concurrently, China Power’s technological innovation platform has expanded, culminating in the addition of two Specialized, Refined, Distinctive, and Innovative (SRDI) enterprises and four National High-tech Enterprises, thereby significantly enhancing innovation levels and bolstering collaborative capabilities.
We are propectively positioning ourselves in the electricity trading market. As a proactive response to the ongoing market-oriented reforms in the national power industry, China Power continuously enhances its market-based power sales capabilities and customer service levels, by strengthening its tracking and research of policies and regulations governing spot trading, Green Electricity Certificates (GEC), green power, and Carbon Emission Allowances (CEA). The scale of GEC and green electricity trading has experienced steady growth, while the economic value derived from green environmental benefits has been consistently realized, thereby injecting renewed momentum into the energy sector's green transformation.
Consolidating Our Foundation to Nurture Long-term Success with Sound Governance
China Power consistently views efficient and robust corporate governance as fundamental to achieving high-quality development. We continually optimize our corporate governance system to enhance the scientific rigor and execution of decision-making processes. Our commitment to equitable treatment of all shareholders, coupled with the maintenance of a prudent, stable, transparent, and standardized corporate governance culture, underscores our strategic approach. During the reporting period, we focused on bolstering core competitiveness and strengthening essential functions by systematically optimizing our institutional framework. This effort has cultivated a corporate governance structure characterized by clear positioning, well-defined functions, a balance between control and empowerment, and modern governance practices. Consequently, our systemic approach, coordination, and execution efficiency have been significantly enhanced, providing robust support for the successful implementation of the Company's strategic initiatives.
The integration of ESG governance has been a catalyst for our high-quality development. We have established a comprehensive four-tier ESG governance framework that extends ESG management across various functional departments and grassroots units. Climate risks have been fully incorporated into the Company's risk management system, while ESG evaluation criteria are now integral to key processes such as investment decisions and procurement bidding. The ESG information management system has significantly enhanced the standardization and transparency of data governance practices. We prioritize the development of an ESG talent pool, having organized 2025 China Power’s ESG Training Program for Listed Companies, as well as conducting climate risk stress test training for key departments. These initiatives aim to elevate the sustainable development literacy of all employees. During the reporting period, China Power successfully achieved its phased strategic ESG objectives, thereby infusing robust momentum into the Company’s pursuit of high-quality and sustainable development.
Digital transformation has empowered significant enhancements in operational quality and efficiency. During the reporting period, we effectively implemented the “1455” framework for establishing a world-class financial management system in central SOEs, as proposed by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. Our concerted efforts advanced benchmark digital projects, culminating in the successful completion of a high-quality system switchover and launch across all units. Consequently, we have enabled nearly 200 business processes to function entirely online, encompassing critical areas such as finance, human resources, procurement, production, equipment, and sales. This transformation substantially boosts management efficiency and enhances the rigor of risk supervision. Furthermore, it provides a robust foundation for advancing the deep integration of business and finance, unlocking the potential of data elements, and further empowering operational quality and efficiency.
In 2025, China Power's governance practices garnered widespread recognition from various social sectors. The Company received multiple awards, including the 2025 Golden Hong Kong Stock Award at the 10th Listed Company Selection by Zhitong Caijing and the Excellent High-Quality Development Listed Company award at the 15th China Securities Golden Bauhinia Awards. Furthermore, its MSCI ESG rating was elevated to an A level, and it was once again acknowledged as a benchmark Double Hundred Enterprise by SASAC. These accolades underscore the Company's ongoing advancements in governance capabilities and sustainable development initiatives.
Marching Forward with Our Community to Gather Strength for Development
China Power steadfastly upholds the principles of shared responsibility and value, effectively aligning its corporate development with the public's well-being and overall social progress. The Company remains committed to a people-oriented approach, continuously enhancing its employee development and care systems. In response to the demands of strategic transformation and high-quality development, China Power systematically optimizes its organizational structures and talent allocation. It innovates mechanisms for talent acquisition and cultivation, while also promoting differentiated assessments and precise incentives to energize the workforce. Additionally, the Company takes key measures, such as providing technical support to newly established units, offering subsidies for employees in remote and underserved areas, and enhancing service provisions for retired personnel. These initiatives successfully address employee concerns, fortifying their sense of fulfillment, belonging, and cohesion within the organization.
Work Safety remains the cornerstone of China Power's development strategy. We rigorously fulfill our primary work safety responsibility and continually enhances its risk prevention and control systems to guarantee a safe, stable, and reliable power supply. During the reporting period, China Power achieved a record of zero major accidents in safety. By reinforcing comprehensive management practices, advancing system standardization, and deepening the dual prevention mechanism alongside emergency response capabilities, the foundation of the Company’s safety management has been robustly strengthened.
In terms of fulfilling social responsibilities, China Power has continuously enhanced the development of its Yingshanhong public welfare brand. The education assistance funds have notably benefited students in regions such as Anhui, Guizhou, and Xinjiang. Young volunteers have effectively conveyed warmth and support through various initiatives aimed at assisting individuals with disabilities, impoverished communities, and promoting environmental protection. Moreover, on the front lines of energy supply, we adeptly navigated challenges such as peak summer loads and severe winter cold waves, successfully accomplishing significant missions to ensure consistent power and heat supply. These performances exemplified the unwavering commitment of a central energy enterprise to reliable and stable energy provision.
Looking ahead, we remain committed to our vision of becoming The World’s Leading Green and Low-carbon Energy Provider while fulfilling our mission of Lower Carbon Empower Better Life. We will steadfastly pursue green and low-carbon development. China Power is poised to collaborate with all partners, utilizing technological innovation as our driving force and green development as our guiding principle. Together, we will address global climate challenges, contribute to the construction of a Beautiful China, and author a new chapter in sustainable development.
1 Clean energy covers hydropower, wind power, photovoltaic power, natural gas power, environmental power generation and energy storage.
2 SPIC Hydropower is a company listed on the Shanghai Stock Exchange (Stock Code: 600292).
