HUNGF (HUNGF) Q2 2026 Earnings Report, Transcript and Summary

Good afternoon, ladies and gentlemen. On behalf of Huaneng Power International, Inc., I would like to welcome you all to the conference call regarding the interim results announcement of 2026. [Foreign Language] Now, may I introduce the management of the company today. [Foreign Language] Executive Director and President of the company, Mr. Liu Ancang [Foreign Language] .

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[Foreign Language] The Independent Director of the company, Mr. Zhang Xianchong.

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[Foreign Language] The Chief Accountant and Board Secretary of the company, Mr. Wen Minggang.

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[Foreign Language] People in charge of the related departments are also joining us in this meeting. [Foreign Language] First of all, Executive Director and President of the company, Mr. Liu will review the business performance for the interim results of 2026, followed by the Q&A session. [Foreign Language] May we have the honor to invite Mr. Liu to review the business performances and Mr. Liu Guoyue to conduct the English interpretation.

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

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[Interpreted] Under solid leadership of the Board, 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.

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[Interpreted] Calculating under China's accounting principle. In the first half of this year, the company has realized a consolidated operating revenue of RMB 106.91 billion, decreased by 4.58% year-on-year. The net profit attributable to the company's shareholders scaled RMB 6.59 billion, decreasing by 28.89% yearly, and the EPS is now at RMB 0.35.

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[Interpreted] 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 farm has seen a consistent growth, while the on-grid power sold has seen a year-on-year decrease as the capacity of renewables is growing rapidly nationwide and taking the share of coal-fired units in the energy mix.

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[Interpreted] In H1, the company's domestic on-grid power sales decreased by 2.97% at RMB 199.78 billion kilowatt hour and the average tariff was RMB 463.02 per megawatt hour, decreasing by 4.59%.

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[Interpreted] In terms of coal supply, we swiftly adjusted our coal purchase plan based on a solid research of coal market dynamics and the estimation of electricity consumption. The company has made multiple efforts in controlling the fuel costs, including strengthening operation of high-quality long-term contracts and updating our strategies and making spot market deals. Besides, we also replaced the proportion of coal from price surge to overseas market and optimize our dynamic control in coal inventory.

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[Interpreted] The standard coal price of H1 decreasing by 2.84% year-on-year at RMB 891.02 per ton.

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[Interpreted] The company always hold a strategy of low carbon transformation. In the first half of this year, we have taken every effort propelling the construction of infrastructure.

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[Interpreted] We've added 2.55 gigawatts of renewable capacity out of 3.04 gigawatts in total this year by the end of June. All this newly installed capacity are with competitiveness, both in their quality and market bidding capabilities, plus 490 megawatts newly installed gas-fired units, the total installed capacity under control now scales 159 gigawatts. Low carbon clean energy takes more than 42% in the chart.

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[Interpreted] In terms of business overseas, we swiftly optimized our market bidding strategy based on the solid research of both Singaporean electricity market and fuel market, pursuing the best performance under current conditions.

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[Interpreted] In the first half of this year, Tuas Power has realized an earnings before interest and taxes of RMB 745 million. Sahiwal plant in Pakistan keeps a stable operation as well, earning RMB 451 million.

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[Interpreted] During the rest of this year, putting efficiency and quality first, we will push forward our costs and optimizing both power generation and asset portfolio, cementing the very foundation of energy security. In terms of the power generation, the company will level our analyzation and demand supply relation. We refined market strategy or shift our power generation curve for better efficiency at peak hours.

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[Interpreted] In terms of coal consumption, we will tightly focus on the dynamics of coal market, safeguarding a stable supply while controlling the cost via multiple channels, improving the fulfillment of mid and long-term contracts, optimizing schedule and heat value while purchasing our domestic and international spot markets and via better inventory management as well.

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[Interpreted] Standing on the starting point of the 15th Five-Year Plan amid the complex market horizon and new requirements, Huaneng Power International will reinforce strategic leadership to ensure better development quality and efficiency. We will secure the achievement of the full year target while stepping up development of new programs, delivering an excellent prologue of the next Five-Year Plan.

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[Interpreted] And now my colleagues and I are willing to take your questions.

[Foreign Language] [Operator Instructions] [Foreign Language] The first question comes from Guojin [indiscernible] , Jiang Tao.

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[Interpreted] I have 3 questions. My first question goes to the Tuas Power in Singapore. And I wonder that 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 Tuas Power? And going to the third quarter and what -- how does the company optimize the performance based on this revenue in second quarter? And my second question goes to -- I raised the question in the conference call of the first quarter performance conference. And we wonder that based on the market-based transactions of thermal power generators, what is the profitability change quarter-on-quarter in the second quarter? And my first question goes to the PV sectors of the corporation. How does the company view the profitability of the PV sector as in the second quarter, we have seen a quarter-on-quarter increase? And what is the expectation going forward?

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[Interpreted] In the first quarter -- in the first half of this year, Tuas Power has accomplished 5.32 billion kilowatt hours in entire power generation output, which has saw a 49 million kilowatt hour increase. And we have an earnings before interest and taxes increase of RMB 618 million.

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[Interpreted] The first reason that triggered this year-on-year decrease is about the exchange rate. We have saw a 6.3% year-on-year decrease in exchange rate from the Singapore to RMB, which has affected our profit about RMB 90 million.

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[Interpreted] The second I want to argue is about the carbon dioxide tax in the Singaporean market. The Singaporean administration has raised the tax rate from SGD 25 to SGD 45, which has triggered about RMB 24 million increase in terms of the expenditures on the carbon dioxide tax.

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[Interpreted] And the third reason is the margin have shown a year-on-year decrease as well, which is about SGD 22 per megawatt hour.

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[Interpreted] And as you mentioned about the price mechanism in Singaporeans electricity market, now the Tuas 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 is -- has a margin that connected with the -- with the long-term contract of gas and the financial tools as well, and that is also comparatively stable compared 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 Singaporean electricity market is connected with the GPM index in the International Oil Index. In the first half of '26, the spot market price has raised from RMB 181 per megawatt hour to SGD 2,240 per megawatt hour. But -- although the spot market price of electricity has shown a year-on-year increase, but the gas prices increased simultaneously. So the margin of Singaporean electricity market, especially the Tuas Power has been decreased year-on-year.

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[Interpreted] As I mentioned that the majority of our contracts of electricity was settled by the retail contracts and the price was locked. In the year 2025, the contracts fulfilled 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 tariff in the Singaporean Tuas Power last year. But this year, as the contracts with higher profit margin has been expired, and the newly signed contracts on the spot market is based on the downward trend of the spot market tariff. So that also triggers the decrease of our marginal and that also triggered the year-on-year decrease in the first part of the year for the Tuas Power in Singapore.

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[Interpreted] Since the beginning of this year, as the tariff on the spot market of Singapore has rised, we also urge the Tuas Power in Singapore to reconsider the contract with higher margin and implement new strategies on the spot market to lock even more contracts with higher profitability, cement the foundation for a better profitability in the second half of this year and going forward.

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[Interpreted] In the first half of this year, the coal-fired units of the power has generated about 152.9 million kilowatt hour, and the medium long term contracts has signed 158 billion kilowatt hour and takes about 84%.

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[Interpreted] Bidding in the spot market for the coal-fired units can improve its profitability. In the first half of this year, the coal-fired unit of the company has realized a tariff about RMB 387 per megawatt hour on the market, and that is about RMB 24 per megawatt hour increase compared with the medium long term contract with signed price.

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[Interpreted] 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 earnings of RMB 989 million, which is an increase of about RMB 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 that during the recent years, under the guidelines of low carbon emission strategy initiatives of the country, we have a larger installed capacity of PV sectors. And the second question -- the second reason is about the seasonal reason because of the utilization in the second quarter is comparatively high.

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[Interpreted] And the second reason is about the increase of the on-grid power sales. The PV sector have scaled about 7.65 billion kilowatt hours on-grid power sales, which is a 40% increase equivalent to 2.19 billion kilowatt hours increase.

[Foreign Language] The next question comes Liu Xianda of Citibank.

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[Interpreted] I have 3 questions. My first question goes to the on-grid power sales of the thermal power plant saw a 4.6% decrease in the on-grid power tariff of thermal power generation, which is at about RMB 463 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 this 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 fuel cost of the company. And we have saw unit fuel cost rebounded compared with the first quarter of the year in 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 fuel cost and its trend in the coming next half of this year? And my third 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 full year goal of the newly installed capacity?

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I like to answer your question about on-grid power tariff. In the first half of the year of 2026, we have realized coal-fired unit on grid power tariff of RMB 445.26 per megawatt hour, which has shown a year-on-year decrease of RMB 26.21 per megawatt hour, equivalent to 5.56%. In terms of the gas-fired unit, the tariff was RMB 792.57 per megawatt hour, increasing by RMB 49.86 per megawatt hour equivalent to 6.71% increase. In terms of wind turbine, we have an average tariff of RMB 462.67 per megawatt hour, which has decreased by RMB 16.69 per megawatt hour, equivalent to 3.48% decrease.

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[Interpreted] In terms of the PV farms, we have an average tariff of RMB 370.44 per megawatt hour, decreasing by RMB 20.83 per megawatt hour equivalent to 5.32%. In terms of hydropower, the average tariff was RMB 361.4 per megawatt hour, increasing by RMB 2.77 per megawatt hour. The percentage is about 0.77%. The biomass sector of the company has scaled RMB 718.38 per megawatt hour and decreasing by RMB 6.63 per megawatt hour equivalent to 0.91%.

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[Interpreted] I'd like to answer your question about the coal market going forward to the second half of this year. And we believe that the coal supply in the second quarter -- second half of this year will be tightened as well and the supply will be slack as well. On the demand side, the domestic output was constrained as the company -- 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 coals are not willing to fulfill their contract as well. In terms of the international market, as the Indonesia has delivered its quota for the coal export and the Middle East contradictions between the Iran and U.S. So it also increased the risk on the international spot market of coal.

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[Interpreted] This year, I think 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 will support the comparatively higher price of the coal on the spot market.

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[Interpreted] We haven't adjusted our installment plan on the renewables for the full year. And by the end of Q1, we have more than 10 gigawatts of entire installed capacity under construction, and that is able to support to fulfill the full year goal.

[Foreign Language] The next question comes from [Shui Jiahang] of Industrial Securities.

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[Interpreted] My first question goes to the Tuas Power in Singapore for the company. As we mentioned that the profitability of the Tuas Power has been decreased because of the contracts with higher profit margin have been expired. And I wanted to know that how many contracts is still in fulfillment with higher profit margin? And my second question goes to the tax rate in the second part of the year. For one of the reasons that why the company's tax rate 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 bond? And the third question goes to the standard coal price of the company. I wondered that the standard coal price of the company in the second quarter and in the first quarter, respectively? And what is the quarter-on-quarter change?

[Foreign Language]

[Interpreted] In terms of Tuas Power, the profit margin has been decreased mainly because of the contracts with higher profitability and profit margin has been expired. And we have a 70% of the contract in Singaporean 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 rolling -- based on a rollover signing basis. And in the first half of this year, for Tuas Power, the average profit margin has shown a year-on-year decrease at SGD 22 for Singaporean current.

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[Interpreted] But since the beginning of this year in the first half, the gas price worldwide has 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 market, which is conducive for us to sign new contracts and the fulfillment of new contracts that increase and expand our profit margin.

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[Interpreted] I'd like to answer a question towards the tax rates 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 '26, that number was 16.63%, and that is within the regular range of the tax rate of the company. And that is mainly because of the following 2 reasons. The first is that we have a different policy in terms of different plants in terms of this tax preferential policies. And the second is because the DTA and DTL of the company.

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[Interpreted] In terms of the standard coal price of the company in the first half of 2026, the average of the company scaled about RMB 891.02 per ton, which has a year-on-year decrease of RMB 26.03 per ton equivalent to 2.84%. In terms of the coal-fired units specifically, the coal-fired units has a standard coal price of RMB 832.67 per ton, decreasing by RMB 16.33 per ton, which equivalent to 1.92%. The gas-fired units by RMB 2,057.19 per ton, decreasing by RMB 96.96 per ton equivalent to 4.5% decrease. In terms of the biomass sectors, the company has a standard coal price of RMB 839.58 per ton, decreasing by RMB 53.44 per ton, which equivalent to 5.98% decrease.

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[Interpreted] In terms of the perpetual bonds payout plan, by the end of the first half of '26, we have a RMB 73.47 billion of perpetual balance in the company, which has a decrease of RMB 4 billion. And that is because we have rescheduled our issuance plan. We anticipated that by the end of the year of 2026, the scale of our perpetual bonds will keep comparatively stable.

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

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

[Foreign Language] The next question comes from Song Yingying of China Merchant Securities.

[Foreign Language]

[Interpreted] Well, I do have 3 questions. My first question goes to the electricity long-term contract signed. How many electricity long-term contracts signed in of the coal-fired units of the company? And how many long-term contracts were signed yearly? And as you mentioned that we have 84% of mid- and long-term coverage ratio and how many are signed yearly? And if we have a provincial -- and what about the yearly contract coverage ratio by province, especially in Zhejiang province and Jiangsu province? And my second question also goes to the Tuas Power and about the tariff mechanism of Tuas Power in Singapore. And what is the signing cycle for the long-term contract to the final users or end users in Singapore electricity market? And does the contract signed between the company and the end users was fixed by its profit margin or fixed tariff? And my third question goes to the net profit broken down by different energy types in the second quarter of the year.

[Foreign Language]

[Interpreted] In terms of the Tuas Power's electricity selling contracts, we do not -- as the contracts were signed with those end users, so we do not have a fixed cycle of signing those contracts. But the signing price of the long-term contract has a mechanism that the price is highly connected with the electricity average price on the spot market. And we also use the gas long-term contract and financial tools to lock our profit margins as well. So in the year that 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 -- only in the year that the spot market tariff is comparatively higher and just like the year of 2022 and year 2023, and that will ensure a comparatively higher profitability of the company.

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[Interpreted] And in terms of the long-term contract -- medium and long-term contract of electricity for the coal-fired unit, we have signed a mid and long-term contract about 128 billion kilowatt hour and the yearly contract take about 58%.

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[Interpreted] In Zhejiang province, the yearly signed contract is comparatively higher, which is around 75%.

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[Interpreted] In Jiangsu province, the proportion is around 60%.

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

[Foreign Language]

[Interpreted] In terms of the PV sector, we have a net profit about RMB 1.06 billion, which has decreased by RMB 594 million, equivalent to 35.84% decrease. And the hydropower has RMB 44 million margin, which is increasing about RMB 31 million, and the biomass is breakeven.

[Foreign Language]

[Interpreted] Yearly contract -- long-term contracts takes 58% of the entire medium and long-term contracts.

[Foreign Language] The next question comes from [indiscernible] from Orient Securities.

[Foreign Language]

[Interpreted] I have 3 questions. My first question goes to the capacity-based subsidy in the second quarter for coal-fired units and how many -- 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 broken down by different energy types.

[Foreign Language]

[Interpreted] In the first half of this year, the capacity-based subsidy policy has been changed in many provinces and based on the regulatory resolution #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 received in total around RMB 7.4 billion equivalent to RMB 48 per megawatt hour, which is a year-on-year increase of RMB 70 per megawatt hour.

[Foreign Language]

[Interpreted] By the end of the first half of the year, the 12 plants 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, 4 plants have made a loss, which takes about 25%. The wind power generation units have 11 farms made a loss, which equivalent to 8.8%. The PV sector 44 farms have made a loss equivalent to 11%.

[Foreign Language]

[Interpreted] In terms of the net profit attributable to the company's shareholders in the second quarter alone, the coal-fire units of the company has made a net profit attributable to the company's shareholders, which is about RMB 12.04 billion, which has saw year-on-year -- quarter-on-quarter decrease of RMB 24.63 billion equivalent to 67% decrease. The gas-fired units has made a loss of RMB 32 million, which has a quarter-on-quarter decrease of RMB 721 million. The wind power generators has made a contribution of RMB 177 million, which has made a quarter-on-quarter decrease of RMB 374 million, which equivalents to 24%. The PV sector has made a contribution of RMB 871 million, a quarter-on-quarter increase of RMB 677 million, equivalent to 35x the net profit in the first quarter of the year. And hydropower has made a contribution of RMB 43 million equivalent to RMB 43 million increase as well.

[Foreign Language]

[Interpreted] I also want to ask that we have 12 months of coal-fired units that have made a loss. I wonder that the geopolitical distribution and the reason that the company made a loss.

[Foreign Language]

[Interpreted] The plants that made a loss in the first half of 2026, the coal-fired unit, the plants in Liaoning and in Northwest China as well as in Hubei province have made a loss. And for gas-fired units, Hainan has made a loss.

[Foreign Language]

[Interpreted] And that is triggered because the tariff has seen a decrease as well as the increase of unit fuel cost.

[Foreign Language] The next question comes from Jiang [indiscernible] of CICC.

[Foreign Language]

[Interpreted] I have 3 questions. The first question goes to the coal purchase mechanism of the company in the second quarter alone. And how many coal are purchased via the long-term contract and those from the spot 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 cost with issuers by the end of this year? And my third question goes to the second quarter alone and how many ancillary services revenue has received by the company?

[Foreign Language]

[Interpreted] In the second quarter alone, the long-term contract has covered the entire consumption of 44.5% and the standard coal price of long-term coal is around RMB 907.56 per ton. Those from the spot market takes the share of 30.72%, the standard coal price of spot market coal scales RMB 958.66 per ton. And those on overseas market takes 24.78% of the share and the standard coal price of those from overseas scales RMB 998.01 per ton.

[Foreign Language]

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

[Foreign Language]

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

[Foreign Language]

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

[Foreign Language] The next question comes from Gary [indiscernible].

[Foreign Language]

[Interpreted] I have 3 questions. My first question goes to the tariffs of the coal-fired units of the company. And does the company has broken down by different contract types, including the long-term -- mid and long-term contract of electricity price and those from spot market, 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 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 does the company's expectation towards the electricity storage of the country and relevant documents are encouraging that? The third 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 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 2026?

[Foreign Language]

[Interpreted] And we have offered you the mid and long-term contract signing price of the first half of this year and the quarterly data will give you after this conference. Thank you.

[Foreign Language]

[Interpreted] According to the Document #136, the electricity storage is not the prerequisite of the construction of the renewable projects.

[Foreign Language]

[Interpreted] 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.

[Foreign Language]

[Interpreted] So the efficiency of electricity storage plant has become the very important factors when we are delivering that.

[Foreign Language]

[Interpreted] By the end of June, we already have about 802 megawatts equivalent to 1,661 megawatt hours electricity storage plant already into business operation.

[Foreign Language]

[Interpreted] Those electricity storage under construction are scaled at 653 megawatts, equivalent to 1,390 megawatt hour.

[Foreign Language]

[Interpreted] Going forward, we will be 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.

[Foreign Language]

[Interpreted] We believe that this mentality is responsible for the quality of both the storage capacity itself and our shareholders.

[Foreign Language]

[Interpreted] We always highlight the dividend dispatching plan, and we are also delivering those dividend dispatching plan based on the articles of associate of 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 associate.

[Foreign Language]

[Interpreted] In the year of 2026, we have dispatched the dividends at RMB 0.4 per share, which is increasing about 50% compared with the RMB 0.27 per share in the year of 2024. And the company is always devoted to optimizing our policies and plans for dividend dispatching, and we want to share even more with our shareholders as well.

[Foreign Language] Due to time constraint, we invite the last investor to ask. The last question comes from [indiscernible].

[Foreign Language]

[Interpreted] I have 3 questions and the management has introduced the coal-fired unit electricity contract, coal-fired units of the company by the end of the first half of this year. And I wonder what is the proportion of the yearly contracts, monthly contracts and spot market contracts and its price, respectively. And you mentioned that the Zhejiang and Jiangsu Province exposed a larger proportion of the contract, the signing ratio in the mid and long-term contracts. We wonder how does the company calculating that number? And what is the denominator in this fraction? And my second question is, I want to know that in the year of 2026, what is the standard coal price of the coal-fired unit in June and July, respectively? And thirdly, I want to know that something about the company's 15th Five-Year Plan. And if there is some information that is ready for disclosure around the company's 15th Five-Year Development Plan.

[Foreign Language]

[Interpreted] The denominator of the fraction is the mid and long-term contracts, and we calculated that share of the mid and long-term contract.

[Foreign Language]

[Interpreted] About those signing price respectively, those contracts signed yearly is around RMB 360 per megawatt hour.

[Foreign Language]

[Interpreted] The signing price of monthly contracts is a little higher compared with those signing in annually, which is around RMB 366 per megawatt hour.

[Foreign Language]

[Interpreted] In the terms of the mid and long-term contract price of electricity, in Jiangsu Province, the price is around RMB 335 per megawatt hour. In Zhejiang province, RMB 345.

[Foreign Language]

[Interpreted] In that 2 provinces, the coal-fired units of the company can expand its revenue on the spot market and Jiangsu is better.

[Foreign Language]

[Interpreted] In terms of the question about the standard coal price broken by month, we do not have the specific data monthly. I want to show you the standard coal price in the second quarter of the year. The standard coal price of the company has scaled at RMB 907.20 per ton in the second quarter, which is a quarterly increase by RMB 33 per ton equivalent to 3.77%. The coal-fired unit, respectively, has a standard coal price of RMB 855.79 per ton, a quarterly increase of RMB 47.26 per ton, increasing by 5.85%. The gas-fired unit scales at RMB 2,013.33 per ton, a quarterly decrease of RMB 83.45 per ton, equivalent to 4% decrease.

[Foreign Language]

[Interpreted] 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.

[Foreign Language]

[Interpreted] 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.

[Foreign Language]

[Interpreted] The first is about the coal-fired unit. We are expanding our installed capacity while balance -- striking of balance between the green energy transformation as well as the power output.

[Foreign Language]

[Interpreted] Expanding the installed capacity of coal-fired unit equivalents to delivering a larger and more efficient plant and replace those outdated plants.

[Foreign Language]

[Interpreted] In terms of controlling the power generation output, we need to accept the trend -- downward trend of the average unit fuel cost of coal-fired units and transitioning those coal-fired units into an ancillary services oriented generators.

[Foreign Language]

[Interpreted] Implementing the energy transformation of the coal-fired units equivalents, we need to promote the new technologies in our coal-fired units as well as embrace the industrial revolution.

[Foreign Language] .

[Interpreted] In terms of renewables, we want to improve the development quality of renewables by the means of developing those outstanding plants, including those offshore wind turbine in deep and far sea.

[Foreign Language]

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

[Foreign Language]

[Interpreted] I also want to argue that we're still dropping our specific 15th 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 CHNG Group. And when the 15th Five-Year Plan of the company was ready, we will deliver that to the market in our disclosures. Thank you.

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

[Foreign Language]

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

[Foreign Language]

[Interpreted] 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.

[Foreign Language] [Interpreted] Thanks again for 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. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]