Hunan Chen Dian International Development Co Ltd

On August 26, the A-share market fluctuated lower in the afternoon. The Shanghai Composite Index rose 0.59 percent to 3,912.52 points, the Shenzhen Component Index rose 0.69 percent to 13,841.33 points, the ChiNext Index rose 0.51 percent to 3,414.88 points, and the Beijing Stock Exchange 50 Index rose 0.45 percent to 1,067.97 points. Total turnover across the three exchanges reached 1.8218 trillion yuan, down 22.4 billion yuan from the previous session. In the afternoon, the power sector strengthened. Lixil New Energy surged in a straight line and hit the daily limit up within one minute, closing at 13.52 yuan per share with a total market value of 12.619 billion yuan. Earlier, Xinzhonggang and Chenzhou Electric Power International had already hit their daily limit up, while Huadian Liaoning Energy and GCL Energy rose in tandem. On the news front, the 2026 Green Computing and Artificial Intelligence Conference opened in Hohhot on August 22. Data showed that in 2025, electricity consumption by China's computing facilities reached 170 billion kilowatt-hours, up about 30 percent year on year. The National Energy Administration expects that during the 15th Five-Year Plan period, national computing electricity consumption will increase by an average of more than 100 billion kilowatt-hours per year. Lixil New Energy mainly operates wind power and photovoltaic power generation. In the first half of the year, its operating revenue was 644 million yuan, up 29.75 percent year on year, and net profit was 73.0239 million yuan, up 715.75 percent year on year. The profit growth was mainly driven by the grid connection and operation of the Xinjiang power transmission project by an associated company and an increase in new energy subsidy payments received.

Chenzhou Electric Power International released its 2026 interim report, with net profit attributable to the parent company of 51.9594 million yuan, up 100.49% from the same period last year. Total operating revenue was 2.006 billion yuan, up 2.51% year on year, marking five consecutive years of growth. Net cash inflow from operating activities was 804 million yuan, up 73.01% year on year. The company's latest asset-liability ratio was 71.41%, down 0.42 percentage points from the same period last year. Gross margin was 7.28%, up 1.95 percentage points from the previous quarter. Return on equity was 1.43%, up 0.71 percentage points year on year. Diluted earnings per share were 0.14 yuan, up 100.57% year on year.

Chenzhou International has disclosed its earnings forecast, expecting net profit attributable to the parent of 44 million yuan in the first half of 2026, up 69.78% year-on-year. Deducted non-recurring net profit is expected to be 54 million yuan, up 1,101.58% year-on-year. The company said the profit growth mainly stems from continuously deepening the six major campaigns, focusing on improving the quality and efficiency of its core power supply business, and coordinating three main lines of reducing losses, cutting expenses, and lowering costs. This includes lowering the comprehensive power supply line loss rate, reducing financial expenses, and accelerating the construction and grid connection of new energy projects for power generation. At the same time, abundant rainfall in the first half of the year increased the share of low-cost power sources and reduced the cost of purchased electricity. Based on the closing price on July 14, Chenzhou International currently has a price-to-earnings ratio of about 29.2 times, a price-to-book ratio of about 0.77 times, and a price-to-sales ratio of about 0.66 times. The company is mainly engaged in power supply and water supply, and has also laid out businesses in industrial gases, hydropower development, sewage treatment, new energy development, and integrated energy services.