Huaneng Power Intl Inc-h Stock

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.

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[Foreign Language] Independent Director of the company, Mr. [indiscernible].

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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.

[Foreign Language]

[Interpreted] Ladies and gentlemen, good afternoon. Welcome to the 26th Interim Results Conference of Huaneng Power International. We 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] Solid leadership of the Board, the company struck a balance between tangible development outcomes as well as securing 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.

[Foreign Language]

[Interpreted] Calculating China's accounting principles, in the first half of this year, the company has realized a consolidated operating revenue of CNY 106.9 billion, decreased by 4.58% year-on-year. The net profit attributable to the company's shareholders scaled CNY 6.59 billion, decreasing by 28.89% year and the EPS is now at CNY 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 wind farm has a consistent growth, while the on-grid power saw a year-on-year decrease while the capacity of renewables is growing rapidly nationwide and taking the share of coal-fired units in the energy mix.

[Foreign Language]

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

[Foreign Language]

[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 2.8% year-on-year at CNY 891.02 per can.

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[Interpreted] The company always hold its strategy of low carbon transformation in the first half of this year is taking 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 scaled 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 Singapore electricity market and fuel market, pursuing the best performance at the 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 CNY 745 million. Sahiwal plant in Pakistan keeps a stable operation as well, earning CNY 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 [indiscernible] market strategy will shift our power generation curve for better efficiency at peak hours.

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[Interpreted] In terms of coal consumption, we will partly 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.

[Foreign Language]

[Interpreted] Setting on the starting point of the 15th 5-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 [indiscernible] the next 5-year plan.

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

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[Operator Instructions] [Foreign Language]

The first question comes from [indiscernible].

[Foreign Language]

[Interpreted] I have 2 questions. My first question goes to the Tuas Power in Singapore. And I wanted to ask 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 the second question goes to -- I raised the question in the conference call of the first quarter performance conference. And we wanted 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 cooperation. How does the company view the profitability of the PV sector in the second quarter, we have seen a quarter-on-quarter increase? And what is the expectation going forward?

[Foreign Language]

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

[Foreign Language]

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

[Foreign Language]

[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 CNY 25 to RMB 45, which has triggered about CNY 24 million increase in terms of the expenditures on the carbon dioxide tax.

[Foreign Language]

[Interpreted] And the third reason is the margin have shown a year-on-year decrease as well, which is about CNY 22 [indiscernible].

[Foreign Language]

[Interpreted] And as you mentioned about the price mechanism in Singapore's electricity market, now the Tuas Power has a contract, 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 low compared with the spot market.

And we also have 10% of the entire power generation out 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 GDM index in the International Oil Index. In the first half of '26, the spot market price has raised from CNY 181 per megawatt hour to CNY 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.

[Foreign Language]

[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 margin and that also triggered the year-on-year decrease in the first part of the year for the Tuas Power in Singapore.

[Foreign Language]

[Interpreted] Since the beginning of this year, [indiscernible] contract with higher margin and implement new strategies on the market to even more contracts to higher profitability [indiscernible] 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 [indiscernible] has generated about 152.9 million kilowatt hour [indiscernible] 158 million kilowatt hour and takes about 84%.

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

[Foreign Language]

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 CNY 989 million, which is an increase of about CNY 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.

[Foreign Language]

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

[Foreign Language] The next question comes [indiscernible] of Citibank.

[Foreign Language]

[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 CNY 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 cost of the company. And we have saw unit 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 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 in capacity?

[Foreign Language]

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 CNY 445.26 per megawatt hour, which has shown a year-on-year decrease of CNY 26.21 per megawatt hour, equivalent to 5.56%. In terms of the gas-fired unit, the tariff was CNY 792.57 per megawatt hour, increasing by CNY 49.86 per megawatt hour equivalent to 6.7% increase. In terms of wind turbine, we have an average tariff of CNY 462.67 per megawatt hour, which has decreased by CNY 16.9 per megawatt hour, equivalent to 3.4% decrease.

[Foreign Language]

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

[Foreign Language]

[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 flagged as well. On the demand side, the domestic [indiscernible] 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 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.

[Foreign Language]

[Interpreted] This year, in 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 reasons, 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 that will support the comparatively higher price of the coal on the spot market.

[Foreign Language]

[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 [indiscernible] of Industrial Securities.

[Foreign Language]

[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 [indiscernible] of the company. I wonder that the [indiscernible] 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 Singapore market is signed for the retail customers, and that is including the customers in industries and in business. 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 CNY 22 for Singapore current.

[Foreign Language]

[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.

[Foreign Language]

[Interpreted] I'd like to answer a question towards the tax rate 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 [indiscernible] of the company.

[Foreign Language]

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

In terms of the biomass sectors, the company has a price of CNY 839.58 per ton, decreasing by CNY 53.44 per ton, which equivalent to 5.98% decrease.

[Foreign Language]

[Interpreted] In terms of the perpetual bond payout plan, by the end of the first half of '26, we have a RMB 73.47 billion of perpetual bond 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 stable.

[Foreign Language]

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

[Foreign Language]

[Interpreted] In the second quarter alone, we have an average unit fuel cost of CNY 281.03 per megawatt hour, which has quarter-on-quarter increase of CNY 35.7 per megawatt hour equivalent to 14.56%. In terms of coal-fired units, it has an average unit fuel cost of CNY 269.92 per megawatt hour, which is a quarterly increase of CNY 36.03 per megawatt hour, increasing by 15.4%. In terms of gas-fired units, we have a unit fuel cost of CNY 443.82 per megawatt hour, a quarterly increase of CNY 68.41 per megawatt hour equivalent to 18.22%. In terms of the biomass sector, we scaled a unit fuel cost on average of CNY 372.32 per megawatt hour, a quarterly increase of CNY 89.6 per megawatt hour equivalent to 31.69%.

[Foreign Language]

The next question comes from [indiscernible].

[Foreign Language]

[Interpreted] 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 -- and what about the yearly contract coverage ratio by province, especially in [indiscernible] 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 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 higher profitability of the company.

[Foreign Language]

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

[Foreign Language]

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

[Foreign Language]

[Interpreted] In terms of [indiscernible] is around 60%.

[Foreign Language]

[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 is 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 decreasing by RMB 704 million equivalent to 20.5% decrease.

[Foreign Language]

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

[Foreign Language]

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

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

[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 break 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 CNY 48 per megawatt hour, which is a year-on-year increase of CNY 70 per megawatt hour.

[Foreign Language]

[Interpreted] By the end of the first half of the year, the 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 CNY 12.04 billion, which is year-on-year -- quarter-on-quarter decrease of CNY 24.63 billion equivalent to 67% decrease. The gas-fired units has made a loss of CNY 32 million, which is a quarter-on-quarter decrease of CNY 721 million.

The wind power generators has made a contribution of CNY 177 million, which has a quarter-on-quarter decrease of CNY 374 million, which equivalent to 24%. The PV sector has made a contribution of CNY 871 million, a quarter-on-quarter increase of CNY 677 million, equivalent to 35x the net profit in the first quarter of the year. And [indiscernible] Power has made a contribution of CNY 43 million equivalent to CNY 43 million increase.

[Foreign Language]

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

[Foreign Language]

[Interpreted] [indiscernible] the first half of 2026, the coal-fired unit, the plant in North and West China as well as in [indiscernible] province made a loss. And for gas units, Hainan has made a loss.

[Foreign Language]

[Interpreted] [indiscernible] tariff saw a decrease as well as the increase of unit fuel cost.

[Foreign Language]

[Foreign Language]

[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 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 CNY 907.56 per ton. Those from the spot market takes the share of 30.72% coal price of spot market coal scales CNY 958.66 per ton. And those on overseas market takes 24.78% of the share and the coal price of those from overseas scales CNY 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 a year-on-year decrease in the revenue from the ancillary services. In the first half of this year, we 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 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 is no longer exist.

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

[Foreign Language]

[Interpreted] I have 3 questions. My first question goes to the tariffs of the coal-fired units of the company. And 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 dispatch plan of the company. And we have -- 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 dispatch ratio and earnings per share in the year 2026?

[Foreign Language]

[Interpreted] And we have offered 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.

[Foreign Language]

[Interpreted] According to the document #136, the electricity storage is not the prerequisition 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 construction scaled 653 megawatts equipment [indiscernible] megawatt hour.

[Foreign Language]

[Interpreted] Going forward, we will deliver 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 dispatch plan, and we also deliver dispatch plan based on the articles 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 dispatch ratio is no less than 50% according to the articles of [indiscernible].

[Foreign Language]

[Interpreted] In the year of 2026, we have dispatched the dividend at CNY 0.4 per share, which is increasing about 50% compared with the CNY 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] The last question is from [indiscernible].

[Foreign Language]

[Interpreted] I have 3 questions and the management has introduced the coal-fired unit electricity contract, coal-fire unit 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 [indiscernible] both 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 direction?

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 5-year plan. And is there some information that is ready for disclosure around the company's 15th 5-year development plan.

[Foreign Language]

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

[Foreign Language]

[Interpreted] About the selling price, respectively, those contracts signed yearly is around CNY 360 per megawatt hour.

[Foreign Language]

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

[Foreign Language]

[Interpreted] In the terms of the mid and long-term contract price of electricity, in terms of province, the price is around CNY 335 per megawatt hour, in [indiscernible] province, CNY 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 CNY 907.20 per ton in the second quarter, which is a quarterly increase by CNY 33 per ton equivalent to 3.77%. The coal-fired unit, respectively, has a standard coal price of CNY 855.79 per ton, a quarterly increase of CNY 47.26 per ton, increasing by 5.85%. The gas-fired unit scales at CNY 2,013.33 per ton, a quarterly decrease of CNY 83.45 per ton, equivalent to 4% decrease.

[Foreign Language]

[Interpreted] About the company's 15th 5-year plan, we will also highlight the quality and efficiency of development just like what we did during the 14th 5-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 -- the coal-fired unit, we are expanding our in balance between the green energy as well as the power output.

[Foreign Language]

[Interpreted] Expanding the 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] The energy transformation of the coal-fired units equivalents to 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 [indiscernible].

[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 plant.

[Foreign Language]

[Interpreted] I also want to argue that we're still dropping our specific 15th 5-year plan based on the country's regulations and those documents from administration as well as the 15th 5-year plan of the entire group. And when the 15th 5-year plan of the company was ready, we will deliver that to the market in our disclosure.

[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.]

[Foreign Language] 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 first quarterly 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, Ms. Liu Ancang.

[Foreign Language]

[Interpreted] Independent Director of the company Mr. He Qiang [Foreign Language]

[Foreign Language]

[Foreign Language] Vice President Mr. Du Canxun, [Foreign Language]

[Foreign Language]

[Foreign Language] Chief Accountant, Board Secretary, Mr. Wen Minggang, [Foreign Language]

[Foreign Language]

[Foreign Language] People in charge of the related departments are also joining us in this meeting.

[Foreign Language] First of all, the President of the company, Mr. Liu will review the business performance for the first quarterly results of the 2026, followed by the Q&A session.

[Foreign Language] Now may we have the honor to invite Mr. Liu to review the business performance and Mr. Liu Guoyue is going to conduct the English interpretation.

[Foreign Language]

[Interpreted] Ladies and gentlemen, good afternoon. Welcome to the first quarter results conference of Huaneng Power International.

[Foreign Language]

[Interpreted] We have announced the operating results for the first quarter of 2026 yesterday, and now I'd like to give a brief introduction.

[Foreign Language]

[Interpreted] In the first quarter, we actively respond to the change of the policy and challenges on the market. Our business maintained stable while witnessing progress. As the electricity spot market mechanism was introduced in more and more provinces and regions and the power supply and demand is in a loose state, the company's total power production and tariff went down continuously.

[Foreign Language]

[Interpreted] Calculating under China's accounting principle, in the first quarter of 2026, the company has realized a consolidated operating revenue of CNY 56.8 billion, decreasing by 5.89% year-on-year. The net profit attributable to the company's shareholders scaled CNY 4.48 billion with a year-on-year decrease of 9.83%.

[Foreign Language]

[Interpreted] In terms of the power production, we actively promote the low-carbon green energy transformation. The overall installed capacity of the company's photovoltaic and wind power plants have shown a consistent growth, while the on-grid power sold have shown a year-on-year decrease as the capacity renewables growing rapidly nationwide, taking share of coal-fired units in the energy mix.

[Foreign Language]

[Interpreted] In quarter 1, the company's domestic on-grid power sales decreased by 4.82% at 101.48 billion kilowatt hour. The average tariff was CNY 460.73 per megawatt hour, decreasing by 5.93%.

[Foreign Language]

[Interpreted] In terms of coal supply, the company swiftly responded to the landscape of both the domestic market and overseas market, optimizing our strategy for coal procurement timely and attaching greater importance to long-term contracted coal as a cost and supply stabilizer while optimizing our fuel supply structure via seizing opportunities on the spot market.

[Foreign Language]

[Interpreted] The standard coal price of the quarter 1 decreased by 9.39% at CNY 874.24 per ton.

[Foreign Language]

[Interpreted] In terms of business transformation, we spotlight the strategy of low-carbon transformation while balancing the quantity and quality of renewable projects, promoting the development and construction of renewables based on the policy and market dynamics.

[Foreign Language]

[Interpreted] In the first quarter of 2026, we have added 1.1 gigawatts capacity in total, including 610 megawatts of renewables and 490 megawatts of gas-fired units. By the end of this quarter, the total installed capacity of the company scaled 157 gigawatts. Low carbon clean energy now takes 41.42%.

[Foreign Language]

[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 at the current conditions.

[Foreign Language]

[Interpreted] In the first quarter of this year, Tuas Power has realized an earnings before tax of CNY 381 million and Sahiwal Plant in Pakistan keeps a stable operation as well, earning CNY 225 million this quarter.

[Foreign Language]

[Interpreted] Going forward, during the rest of this year, we'll actively promote the construction of renewable projects while coordinating the pace and performance of development. We'll focus not only the scale projects, but also on investment efficiency and building better energy mix.

[Foreign Language]

[Interpreted] The company aimed to optimizing bidding strategy based on the in-depth researches of the policy and the demand supply relations improve the efficiency of power production.

[Foreign Language]

[Interpreted] We will also follow tightly the dynamics of fuel markets, optimizing the signing and renovation of high-quality long-term contracts while keep flexibility in our core procurement, taking every effort to control our fuel cost.

[Foreign Language]

[Interpreted] Keeping carbon peaking and carbon neutrality goals in mind in the complex market horizon, we will firmly focus on improving business performance and set a solid foundation for high-quality transformation.

[Foreign Language]

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

[Foreign Language] [Operator Instructions] The first question comes from of Liu Xianda of Citibank.

[Foreign Language]

[Interpreted] I have 3 questions. The first question that in the quarter 1 report, we have seen a 5.6% decrease in the company's tariffs. But recently, in some southern areas in China, southern provinces, we have seen an increase of the tariffs on the spot market of electricity. And what is the expectation of the company's worth the tariffs going forward?

And my second question is towards the unit fuel cost of the company. In the first quarter, we have seen a 10% decrease in the unit fuel cost comprehensively. Does the company believes that the Middle East contradictions between U.S., Israel and Iran will start have an impact towards the company's unit fuel cost in the next quarter?

And my third question goes to the profit of the company. In quarter 1, we have saw a year-on-year decrease for the company's profit in wind, power generators and photovoltaic. And what's the company's expectations towards the wind and EV sectors and the utilization hours and its year-on-year change?

[Foreign Language]

[Interpreted] Well, I'll answer your first question, the reason that in the first quarter, the company's tariff has decreased by 5.6%, especially in some southern areas of China. And by the end of the March, the 5 provinces in Southern China areas have shown a spot market price rise, especially the clearance price, and it has consistent for more than a month. And that is because of the unbalanced demand and supply relation in these areas.

And from the horizon of the whole country, we have monitored the spot market price in many provinces from February to March to April, the settlement tariff was around CNY 300 per megawatt hour. And the reason that caused the high tariff -- high spot market tariffs in the Southern China areas is because that we have -- we do not have enough water resources in Mekong River areas and some requirement to deliver the preparation for summer peak seasons and also it's degenerating of the hydropower generation.

And also in the Guangdong province, the spot market electricity has saw a growth in its prices because that the marginal cost for gas-fired units have seen a rise as the gas price is increasing in the international market. And so the spot market price in Guangdong province have shown a surge. And as in that province, the electricity load is comparatively huge. So it also have an impact towards the neighbor provinces. But we believe that the spot market price rise in Southern China areas is just regional problems and it's caused by the peak season in summer and the marginal cost of gas.

[Foreign Language]

[Interpreted] And towards -- going forward, we expect that the demand and supply on the spot market electricity will tend to be balanced and the power price on the spot market will be decreased in the future. But as you may know that in Liaoning province in Northern East China, it has introduced a policy that -- including the capacity-based subsidy, the ancillary services as well as the operational subsidy for the power generators. And we believe that under these regulations the total settlement price will be stabilized in the future. And it also rely on the ancillary services -- rely on the generators to deliver ancillary services to secure its profit. But for the renewable sectors, including the wind power generation and photovoltaic, it depends on the resources and other related reasons.

[Foreign Language]

[Interpreted] I will answer your second question towards the geopolitical conflict in the Middle East area. And in the coal market around the world, we have seen that the cost of maritime sea has been increased dramatically. And secondly, the gas-fired unit, the gas price across the world is also see a dramatically increase.

They may cost 2 phenomenon. The first one is the in the worldwide electricity market, more producers want to replace their coal-fired units with the gas-fired units. So it's also because the high -- and they're tend to use the higher caloric value of coal.

And the second part, the chemistry industry will also be activated to use coal. And the third reason is the transportation fee domestically will also see a surge. The first one is the transportation via road and expressway will be increased, and that will deliver this kind of demand to railway transportation and also increase the preoccupation in the market.

[Foreign Language]

[Interpreted] In terms of your profitability this year, and we have seen that -- we have seen this year's profitability in wind power generation in quarter 1 is RMB 1.8 billion. In the first quarter of 2025 is RMB 2.25 billion, and we saw a RMB 444 million decrease, which is equivalent to 90%. In photovoltaic power generation, we have a profit of RMB 233 million and last year, RMB 564 million. We have a decrease of RMB 331 million, which is equivalent to 58%.

[Foreign Language]

[Interpreted] In terms of the utilization hours in the first quarter of this year, the wind power has a utilization hour of 523 hours, which is a year-on-year decrease of 71 hours for PV sector, 215 hours, year-on-year decrease of 35 hours.

[Foreign Language]

[Interpreted] Could you please tell us the on-grid power settlement price of the wind sector and PV sector? And what is the year-on-year change?

[Foreign Language]

[Interpreted] In the first quarter of the year, the wind power has a settlement price of CNY 472.9 per megawatt hour, which is a year-on-year decrease of CNY 15.07, equivalent to 3%. And for the photovoltaic, the settlement price was CNY 369.76 per megawatt hour, year-on-year decrease by CNY 30.40 per megawatt hour and 7.6%.

[Foreign Language] The next question comes from Li Yalin of Huata Securities.

[Foreign Language]

[Interpreted] I also have 3 questions. My first question goes to the coal price for the first quarter of the year. And what's the company's long-term contract coal price in the first quarter and its year-on-year change? And also the spot market coal and its year-on-year change.

The second is we have heard in the market that some -- we have heard on the market that the power generators of coal-fired dominance does not have the willing to expand its inventory before the peak season. And what's the company's schedule for expanding inventory? And does that expanding inventory has an impact towards the market price at all?

And the second question is about the -- we have saw in the quarter 1 report that the gas-fired unit has an increase significantly in its profit. And is that because of the increase of the capacity-based subsidy? Or in which provinces this increase is more -- is bigger and does that because the peak load management or other ancillary services?

And the third question is, could the company give us a net income broken down by different energy types?

[Foreign Language]

[Interpreted] In terms of the first question, in the first quarter of the year, the domestic long-term coal contract has a standard coal price of CNY 871.15 per ton, a year-on-year decrease of 7.15%. On the spot market, the price was CNY 832.9 year-on-year decrease of 12.23%. And as far as we know, main power generators has also have a schedule to expand its inventory before the peak season in summer. And in accordance with our schedule, we will expand our inventory from April to June and to loosen impact towards the entire coal-fired market.

[Foreign Language]

[Interpreted] In terms of the profit of gas-fired units of the company, as you can see that in this quarter, we have a significant increase in the profit of gas-fired units. In the quarter 1 of 2026, gas-fired unit has made a profit of CNY 941 million. In the quarter 1 of last year, it was CNY 753 million, which has a 24% increase.

[Foreign Language]

[Interpreted] The reason caused the increase of this profitability are because of the following 3 reasons. And the first one is we have seen that in our company, the gas-fired units having decreased in its on-grid power sales. In quarter 1, we have an on-grid power sales in the gas-fired units of 680.4 billion kilowatt hour, which saw a decrease of 796 million kilowatt hours year-on-year. And on its tariff on grid, we have an on-grid settlement tariff at CNY 805.06 per megawatt hour, increasing by CNY 36.50 per megawatt hour, which is about 5% of increase. And thirdly, it also affected by the unit fuel cost decrease. In the first quarter of the year, the gas-fired units have a unit fuel cost of CNY 375.41 per megawatt hour, which has saw a decrease of CNY 41.39 per megawatt hour.

[Foreign Language]

[Interpreted] We have seen a comparatively larger increase in its profitability in Dongguan gas-fired unit, and that is because of the increase of the recovery rate of capacity-based subsidy and the heat supply subsidy.

[Foreign Language]

[Interpreted] In terms of the net profit by energy types, the coal-fired units have a profit of CNY 3.67 billion, which is an increase of CNY 335 million. Gas-fired units, CNY 739 million, increasing by CNY 175 million. Wind power -- wind sector, CNY 1.61 billion and photovoltaic, CNY 193 million, decreasing by CNY 330 million. And the hydropower sector and the biomass sector of the company are breakeven.

[Foreign Language]

[Interpreted] I want to ask that what's the reason for the increase in the heating supply subsidy of gas-fired units?

[Foreign Language]

[Interpreted] We have a consistent subsidy in Dongguan gas-fired units, but the pace has become quick -- faster in this quarter.

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

[Foreign Language]

[Interpreted] I have 3 questions. My first is the on-grid tariff of coal-fired units and gas-fired units in the first quarter of the company. And what is the per megawatt hour capacity based subsidy in the first quarter of the year?

My second question is, we have seen the profitability has decreased year-on-year in Tuas Power in Singapore. What is the reason? And does that because the gas unit -- the gas price has been increased in the worldwide market since March? And what's the expectation from the company towards the profitability of Tuas Power?

And my third question is what is the -- in which companies and which plants of the wind power generator and PV generators have a loss in quarter 1?

[Foreign Language]

[Interpreted] In terms of the on-grid tariff of coal-fired and gas-fired units in the first quarter, the company's coal-fired units have the on-grid power tariff at CNY 435.04 per megawatt hour, year-on-year decrease by CNY 32.27 per megawatt hour. Gas-fired unit, CNY 805.06 per megawatt hour, year-on-year increase of CNY 36.51 per megawatt.

[Foreign Language]

[Interpreted] For the capacity-based subsidy broken down by every megawatt, for coal-fired units, we have a capacity-based subsidy is CNY 47 per megawatt hour. The gas-fired unit as it has generated less power compared with the coal-fired units, we have a subsidy of CNY 134 per megawatt hour.

[Foreign Language]

[Interpreted] In the first quarter, the Tuas Power has generated the power of 257.9 billion kilowatt hour, which has saw an increase of 10 million megawatt hour and year-on-year increase of 0.78%. And it also generated the profit of RMB 3.18 billion, which has a decrease of RMB 296 million.

[Foreign Language]

[Interpreted] In terms of the reason that we have entered the -- since we have entered the year of 2026, the Singaporean spot market electricity has been stabilized demand. But as the government has introduced some transformation in its regulations and articles and other power generations has also introduced their new power generators. So the supply becoming loose, it triggers the spot market price decrease in Singaporeans spot market of electricity in quarter 1.

[Foreign Language]

[Interpreted] And in Singaporean electricity market, we formally signed the agreement of electricity with higher marginal contribution, but those agreements has already been expired by the end of this quarter. And the newly signed agreement on the spot market of Singaporeans market is based on the pressure of the decrease of the spot market price, and that has also threatened our profitability in Tuas Power.

[Foreign Language]

[Interpreted] In terms of the carbon tax in Singapore's market, formally, the Singaporean government has allocated the carbon dioxide tax for CNY 25 per month. And this year, it has increased to CNY 45, which is a quarter-on-quarter and year-on-year increase. And that has also threatened the profitability of Tuas Power by CNY 40 million.

[Foreign Language]

[Interpreted] And since the end of February, the contradiction between Iran and U.S. has also triggered the increase of the coal market worldwide. But the agreement of gas in Tuas Power that was signed is also based on a long-term contract. So that does not have a marginal -- does not have a larger impact towards our Tuas profitability.

[Foreign Language]

[Interpreted] As the Singaporean government towards this situation also introduced some regulations and articles to safeguarding the backup of LNG and also the policies towards the pricing cap. So we estimated that the Singaporean electricity market will become stable in the future. And if the contradiction in the Middle East areas could be end soon, we estimated that in the year of 2026, the power generation and profitability of Tuas Power will keep stable as well.

[Foreign Language]

[Interpreted] In terms of the loss -- in terms of the power plants that have a loss in the first part of the year, we calculate it based on the equity that we hold in the company. In the first quarter in 2026, we have 10 power plants of wind power generation have a loss and 111 plants of PV sectors have a loss.

[Foreign Language]

[Interpreted] Well, I want to further ask that what -- how many plants we have in PV and wind power generations, respectively?

[Foreign Language]

[Interpreted] The company boasts 122 wind power turbines and among those 8.2% of those plants have made a loss. For PV sector, we have 383 power plants of photovoltaic and 28% have made a loss.

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

[Foreign Language]

[Interpreted] I have 2 questions. And in the first quarter, we have seen that our financial expense saw a decrease. And what is the expectation towards the full year financial expense? And we have any extra spaces for improve our financial space -- financial expense?

And my second question goes to the tax refund for VAT of the inland wind power generators. Does that have an estimated profitability impact?

[Foreign Language]

[Interpreted] In the first quarter of 2026, the company has seized the advantages and opportunities on the financial market and to use the market-based tools and optimized strategies to optimize our financial costs in this quarter.

[Foreign Language]

[Interpreted] And in terms -- in order to meet the needs for the future development and sustainability of development, we have used the mid- and long term -- we have optimized our structure of financial by mid- and long-term debentures and to optimizing our financial expenses.

[Foreign Language]

[Interpreted] In the first quarter of the year of 2026, the consolidated balance -- on the consolidated balance sheet, we have a financial expense of CNY 1.73 billion, which has saw a CNY 10 million decrease equivalent to 0.04%. And going forward, we will seize the atmosphere and -- we'll seize the opportunities and the atmosphere for both the financial market domestically and across the world to save the opportunities of the policy changing and actively optimizing our financial expense.

[Foreign Language]

[Interpreted] By the end of the first quarter, the comprehensive rate of interest-bearing debt of the company was 2.36%, which saw an 8 basis point decrease compared with the beginning of the year 2026.

[Foreign Language]

[Interpreted] In terms of the value-added tax refund in the October of 2026, the Head of Custom, the Ministry of Finance and Taxation Administration of China has introduced this policy. We have ended the tax refund for VAT of inland wind power plant since the November of last year. And for the offshore power generators, we still have the 50% of tax refund for VAT credit carryforward until the end of 2027.

[Foreign Language]

[Interpreted] This policy change does have some impact towards the company's profitability, but it does not have the major impact to our profitability. And in the year of 2025, the company's inland wind power turbine has entered the catalog, which has a VAT refund of CNY 137 million.

[Foreign Language]

[Interpreted] And in the first quarter of 2026, the offshore power turbine has a VAT refund of CNY 18 million.

[Foreign Language]

[Interpreted] Going forward, we encourage our plants of offshore power turbine to use -- fully use this kind of policy.

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

[Foreign Language]

[Interpreted] I have 3 questions. And first, in some provinces, especially in Northern China provinces, we have introduced a higher recovery ratio of the capacity-based subsidy. And does that because the optimization of demand and supply relation and in which provinces, this change is bigger and higher.

And the second question is in the first quarter of the year, we have write-off CNY 13.1 billion of the perpetual bond of the company. And what is the pace in the future?

And my third question is in the coal-fired unit, what is the market -- what is the profit generated by the coal-fired unit in the market-based electricity?

[Foreign Language]

[Interpreted] Well, in terms of the capacity-based subsidy and according to the -- in the previous year, the country has announced the document of 1501. This year, it further introduced the 114 document. It aims to improve the capacity-based subsidy recovery ratio to 50% at the country level. And according to the document #1501 that introduced in the year of 2024, in some areas and provinces which the utilization hour is comparatively low, it has a standard of CNY 165 per megawatt hour per year. And in some northern areas in China, the standard was CNY 100 per megawatt per year. And going forward to the year of 2016, the target -- the policy is targeting us to improve the recovery ratio for those provinces that have a capacity-based subsidy recovery ratio of CNY 100 per megawatt hour per year and all those provinces should receive CNY 165 per megawatt per year. And except for Hainan province and all the provinces in China has raised the standard of recovery ratio to CNY 165.

[Foreign Language]

[Interpreted] According to the policy of the document #114, we are introducing a new mechanism for the capacity-based subsidy recovery. And for those areas, the capacity-based subsidy is higher, and it also boasts a loser supply. And the loser supply means that in that area, but the utilization of our coal-fired units will decrease in a faster -- at a faster pace. So it is also impacted by the renewable installed capacity and coal-fired install capacity as well and the capacity-based subsidy is connecting tightly with the utilization of coal-fired units of the company.

[Foreign Language]

[Interpreted] And for the further introduction of the policy of capacity-based subsidy, you can look up for the document that introduced by Liaoning government and Gansu province government. And in Liaoning province, the capacity-based subsidy in this year will be CNY 370 per megawatt hour per year. In Gansu province, the number will be CNY 330. And the -- that is all beyond the limitation and requirement according to the document #1501. So that is also connected tightly with ancillary services and the power generation to the electricity market by the coal-fired unit.

[Foreign Language]

[Interpreted] And by the end of this quarter, the equity-based financing has decreased by CNY 12.3 billion, and that is because that we rescheduled the issuance of the perpetual bonds, and we will deliver further schedule for the issuance.

[Foreign Language]

[Interpreted] In terms of the market-based tariff increase. And in the first quarter of the year, our daily clearance price on the spot market has increased by CNY 15 per megawatt hour compared with the already signed long-term contract for electricity.

[Foreign Language]

[Interpreted] And does the CNY 15 per megawatt hour increase of the profitability from the market of electricity have the consistency or stability?

[Foreign Language]

[Interpreted] And it's also based on the coverage for the mid- and long-term contract. We optimizing our mid- and long-term assignment based on the curve of supply and demand. And delivering better storage of the mid- and long-term contract.

[Foreign Language]

[Interpreted] Towards those coal-fired units that could deliver an ancillary services, we will -- we have a lower price at the spot market in the -- when the output was low, and we also have a higher price on the spot market when the output is high. So we also have the confidence and capability to maintain the comparatively low price just like at the beginning of this year.

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

[Foreign Language]

[Interpreted] I have 3 questions. The first question is about the coal procurement structure of the company. And what proportion of the company's long-term contracted coal and those coal from the spot market as well as those from the overseas market and its year-on-year change?

And the second question is, we have a larger capital expenditure plan on the wind power sector. And what is the IRR threshold for the company's wind power generators and photovoltaic projects? And how does the company expect the investment and installation from the year of '26 to the year of '28 in terms of PV sectors and the wind sectors?

And the third question is: we know that the company has both a compute center in [ Xiong'an ] as well as in Shanghai. And does that become the company's consolidated balance sheet? Or what about its profitability anticipation?

[Foreign Language]

[Interpreted] In the year of 2026, we have a coal consumption of -- we have an anticipated coal consumption of 181 million tons and the long-term coal contract has signed 100 million tons. The coverage ratio is 80%. And we cannot give you an actual or real proportion for the spot market coal and those coals from the international market as the market dynamics is changing continuously. And in general, the proportion of the company's long-term contracted coal will be keeps similar compared with the year of 2025, which is around 80%. But as the international market horizon is changing gradually, we believe that the import proportion of the coal will be saw a year-on-year decrease and those from the spot market will saw a year-on-year increase.

[Foreign Language]

[Interpreted] And about your second question, in the first quarter of the year, our installed capacity -- newly installed capacity of wind is larger than the newly installed capacity of photovoltaic that is inverse compared with the trend of year 2025. By the end of March, we have a project under construction and those in wind power generation was 7.2 gigawatts in total and the photovoltaic 4.3 gigawatts in total. And in general, we estimated that the threshold has never been changed, but the profitability is changing because of that electricity spot market was already introduced. And now we are spotlighting the investment in wind power generators.

[Foreign Language]

[Interpreted] We still keep the IRR threshold for renewable projects by 6%, and that hasn't been changed.

[Foreign Language]

[Interpreted] And going forward to the 15th 5-year plan period, we still spotlighting the installed capacity growth of renewable power generation. During the 15th 5-year plan, we still highlighting the 2 carbon goals, and we insist that the main direction of developing the renewable energy and to optimizing the company's energy mix. But the outline of the 15th 5-year plan of the company is still based on the country's goal for development and other relevant conditions.

[Foreign Language]

[Interpreted] As for the 2 specific projects, we do not have any further information to deliver as they are still in the early stage of research and development, and we'll timely deliver the further information when it was ready for disclosure.

[Foreign Language] Here comes the last question. The last question comes from Wu Jie of Haitong Securities.

[Foreign Language]

[Interpreted] I have 4 questions. The company has said that the coal-fired units of the company has a net profit of CNY 3.6 billion. Is that right?

And my second question is for the coal-fired units, the coal price by the end of the first half of April, what is the change compared with the price right now and the price of the first quarter of the year. As the market horizon has been changed and long-term coal has already been changed as well.

My third question is: in the period -- in last year, according to the company's annual results, we have a wind power plants has a tariff of negative CNY 40 per megawatt hour. What is the reason that triggering this negative tariff?

And the fourth question is the management has mentioned that we have a CNY 15 per megawatt hour decrease comparing with the long-term contract, and that's from the market-based tariff? That's all.

[Foreign Language]

[Interpreted] You are right. The net profit to the coal-fired unit of the company in the first quarter of the year is RMB 3.6 billion.

[Foreign Language]

[Interpreted] In Shanxi province, in the fourth quarter of last year, we've written off some renewable subsidies and that triggered the negative tariff.

[Foreign Language]

[Interpreted] Well, in terms of supply, as the country has delivered the inspection of the security for production, the relevant administration has also introduced the relevant regulations to curb the production capabilities of the mines. And in the domestic market, we have a limitation of supply growth and plus in the overseas market, the price of coal market is comparatively high. And some restrictions have also added the uncertainty, including the regulations introduced by the government of Indonesia. So we believe that the tight supply will continue.

[Foreign Language]

[Interpreted] In terms of the demand, April was a flat season and the hydropower and the renewable sectors will deliver the better power output. So the daily consumption by the power generators will see a decrease. But the international market, the gas price has been seen a dramatically increase, and we believe that the tightened demand will still keep for a little while. And in Hainan province, high temperature triggered by the El Nino effect has also delivered the better -- the higher demand of coal. And that is also delivered the increase of the coal price of the market.

[Foreign Language]

[Interpreted] We believe the supply and demand curve is still tightening. And in March, the company's standard coal price for coal purchase was CNY 862 per ton, which is an increase of CNY 10 per ton. And by the first half of April, we have seen another CNY 50 per ton increase, and that is also significant.

[Foreign Language]

[Interpreted] To your question about the increase in tariff of the market-based tariff towards the overall tariff, we have a benchmark of annually signed long-term contracts as well as the monthly contract, weekly contracts as well as the daily clearance. So we were holding different kind of settlements and the improvement of CNY 15 per megawatt hour is the clearance price on the spot market comparing with the mid- and long-term contract price.

[Foreign Language]

[Interpreted] Besides those electric market-based tariff, we still have revenue from the ancillary services as well as the operation fee on the spot market, and that has also narrowed the overall divide between those 2 tariffs.

[Foreign Language]

[Interpreted] For the company's coal=fired units, the net profit, you have said is RMB 3.667 billion, and the equity-based profit is RMB 2.57 billion and the percentage of the equity-based profit has been a year-on-year increase. What is the reason?

[Foreign Language]

[Interpreted] The equity-based profit of the coal-fired units have saw a RMB 145 million increase compared with the same period last year, scaling RMB 2.56 billion. And that percentage of net profit is because the minority -- the fraction of minority interest divided by the profit of different power plants, and we have no assurance of new REIT program.

[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 appreciate your long-term support to Huaneng Power International. This marks the end of today's conference. For any further inquiries, please feel free to contact the IR team. Goodbye.

[Foreign Language] Thanks again for your attention of the conference call regarding the first quarter results announcement of 2026. We are looking forward to meeting with all of you in our next results announcement. Thank you.

[Interpreted]

Good afternoon, ladies and gentlemen. On behalf of Huaneng Power International, Inc., I would like to welcome you all to the conference call regarding third quarter results announcement of 2025.

Now may I introduce the management of the company today.

The Chairman of the company, Mr. Wang Kui.

[Foreign Language]

[Interpreted]

Independent Director of the company, Ms. Zhang Liying.

[Foreign Language]

[Interpreted]

The Vice President, General Counsel and Chief Compliance Officer of the company, Mr. Qin Haifeng.

[Foreign Language]

[Interpreted]

The Vice President and Secretary of the company, Mr. Huang Chaoquan.

[Foreign Language]

[Interpreted]

People in charge of the related departments are also joining us in this meeting. First of all, the Chairman of the company, Mr. Wang, will reveal the business performance for the third quarter results of 2025, followed by the Q&A session.

May we have the honor to invite Mr. Wang to review the business performance and Ms. [indiscernible] to conduct the English interpretation.

[Interpreted]

Ladies and gentlemen, good afternoon. Welcome to the third quarter results conference call of Huaneng Power International.

Yesterday, the company has released the third quarter results. Please let me give a brief introduction.

In the third quarter, under the leadership of the Board of Directors, the company centered on annual targets, identified and responded to the changes, overcame difficulties and push forward operations, transition, innovation and overseas management, achieved a record high operating performance and laid a solid foundation for high-quality accomplishment of annual tasks.

Under the Chinese accounting standard, the company achieved a consolidated operating revenue of CNY 172.975 billion, decreasing by 6.19%. Net profit attributable to company's shareholder was CNY 14.841 billion, increasing by 42.52%. The earnings per share was CNY 0.81.

In terms of the power generation, the company pushed forward the green transition with the installed capacity of wind and solar increasing, the renewable power generation increased year-on-year. However, affected by oversupply and market share being taken by the renewables, coal generation decreased year-on-year. In the first 3 quarter, the company's domestic on-grid power sales was 331.451 billion kilowatt hour, decreasing by 2.87%. The average tariff was CNY 478.71 per megawatt hour, decreasing by 3.5%.

In terms of coal supply, the company seized opportunities, optimized procurement strategy, improved the quality of contracted coal, purchased low-cost spot market coal and optimized inventory structure, achieving significant results in cost control. The standard coal price of the first 3 quarter was CNY 892.34 per ton, a year-on-year decrease of 11.01%.

In terms of the development, the company continued the low-carbon transition, focusing on quantity and quality, track the implementation of policies, carry out regional policy research to optimize investment strategies. In the first 3 quarters, the company added 10.3 gigawatts of units, including 6.83 gigawatts of renewables and 3.46 gigawatts of gas units. By the end of September, the company installed capacity reached 155 gigawatts. Wind and solar capacity reached 44.66 gigawatts. Low carbon clean energy accounts for 40.15% of total capacity.

In terms of overseas operations, Tuas Power researched the Singapore power market, ensured stable supply of fuel, optimized the strategies and management. The profit before tax of the first 3 quarters was CNY 1.754 billion. The performance of Sahiwal Power plant in Pakistan remained stable. The profit before tax was CNY 697 million.

In the first quarter, the company will focus on annual development goals, research the policies and market environment, adhere to the constraint of target yields, build high-quality projects and steadily push forward the green and low-carbon development. The company will track changes in the coal market, optimize the procurement structure, prepare for the next year's contract signing and control the fuel cost. The company will research the trends of generation and tariffs, actively respond to policy and market challenges, work on the signing of power purchasing agreements, coordinate volume and price and increase profitable generation.

The company will strengthen fund management, maintain a stable financing structure, funding for energy security and green transition.

Facing a complex market environment, the company will prioritize high-quality and steady growth, improve operating efficiency, ensure the successful conclusion of 14th Five-Year plan. The company will study, implement and carry out the spirit of the Fourth Plenary Session focused on dual carbon goals and energy security policies, systematically plan the strategies for the 15th Five-Year period and lay a solid foundation for further high-quality transformation and development.

Now my colleague and I would like to answer your questions. Thank you.

[Foreign Language] [Operator Instructions] Thank you, Mr. Wang. Here we come to the Q&A session. [Operator Instructions] The first question comes from [indiscernible] of Citi Bank.

[Interpreted]

I have three questions. First, in the third quarter, the company have achieved a sound profitability and mainly due to the unit fuel cost decrease. Could you talk about the reason? Is there any one-off items such as the increasing of spot market purchase and overseas purchase? And in the first quarter and 2026, what will be the company's unit fuel cost outlook? Will that have a further decrease?

Second, as the government have recently announced the plan in the 15th Five-Year period, what will be the company's target of the 15th Five-Year period? And what will be the company's investment focus in the future?

Third, as we see from the news that we have a value-added tax refund for renewables, what is the profit impact to the company? And in the fourth quarter, will the company have any assets impairment taken in wind and solar project?

[Interpreted]

In the third quarter, the company's unit fuel costs have decreased because the company has sticked into the strategies to consume in the peak season and purchase in the off-season. The company have purchased both from the spot market and the overseas market and tried to find the bottom spot of the coal prices and control the company's coal cost. So in the first quarter, we will begin the peak season for coal market. The company has already purchased the coal from the market to help stabilizing the coal price.

In 2026, according to the supply and demand situation and -- the company will have our coal purchasing strategy in the light of the Document 136. As the renewable capacity installation will be stable in the future, we think the place -- the power generation taken by the renewable will be stabilized.

And as 2026 is the beginning year of the 15th Five years period, we think the government will try to stabilize the macroeconomy and the economy will have a recovery.

In the environment that the government has strengthened the inspection of oversupply and environment, we think the coal price will hit bottom and rebound in the future.

For now the company is under the working of editing the 15th Five years plan. The company's plan will be in accordance with the government and the industry plan.

The company will insist on the transition in green and low-carbon development. The company will continue our investment in renewable. And the company -- we think in the next period, we will still have a high-speed growth in renewables. The company will strive for a high-quality development.

In terms of our coal development, the company will have some replacement projects to our old and outdated units, and we will focus on the areas that have high consumption of power. With all this measure taken to optimize our power generation structure and our generation structure for coal sector.

[Interpreted]

And about your questions about the refund of VAT tax, as we know from the authorities, there will be change for the value-added tax for renewables. For onshore wind, the refund -- 50% refund of VAT will be canceled in November 1. And for offshore wind, the VAT refund will be canceled in 2027.

There will be limited impact to the company, and we see the numbers from our operating in renewables recently, the input VAT is higher than the output VAT. I can give you the number in 2024, only CNY 1 billion to CNY 2 billion -- only CNY 100 million to CNY 200 million of VAT, and we don't have any VAT related to our offshore wind.

In the future, the company will track the policy change and keep to invest in the high-quality renewable projects to decrease the cost and the company will try to increase the efficiency to tackle with this policy change.

[Foreign Language] The next question comes from Li Yalin of Huatai Securities.

[Interpreted]

I have three questions. First, could you give us the market-based tariff in the third quarter and the year-on-year changes as well as the quarter-on-quarter changes in market-based tariff? And could you give us some information about the signing of power purchase contract in 2026. Second, could you give us the profit breakdown to different energy sectors in the third quarter alone? Third, we can see from the company's results that the second quarter to the third quarter, the company's solar performance was leading the industry. So could you talk about why we have a leading performance of solar?

[Interpreted]

The average tariff for our wind project was 460 per megawatt hour, decreasing by 14% year-on-year and 2% quarter-on-quarter. Tariff for solar was CNY 394 per megawatt hour, decreasing by 9% year-on-year and increased by 2% quarter-on-quarter. In the first 9 months, the tariff for wind was CNY 474 per megawatt hour, decreasing by 8.3%. In the first 9 months, the tariff for solar was CNY 392 per megawatt hour, decreasing by 8.8%.

According to the government's requirement from 2026 in the areas such as [indiscernible] that have a faster growth rate -- faster transition for the coal power, the capacity payment will be around -- will be increased to no less than 70% of our fixed cost. And for other areas, this number will raise to 50%. After the capacity payment was raised, we have a better recovery capability of our fixed cost. The competitive pressure will be released in terms of the trading. So the monthly and annually based long-term contract purchase will still be 80% to 90% to our total market-based tariff. Other will be complemented by the spot market.

Currently, the signing of 2026 contract haven't begun yet. We estimated that it will begin by the end of November. For now, the cost of primary energy was relatively low. However, it will rebound in the long run and the local government still required a tariff cut. It is estimated that in 2026, the range of the contract tariff will change based on the capacity tariff. However, we think the capacity tariff plus the power tariff will have a slight decrease comparing to 2024.

[Interpreted]

Please let me give you the numbers of net profit breakdown to different energy sectors in the first 9 months. For the coal sector, CNY 10.819 billion, increasing by CNY 5.765 billion or 114.05%. Gas sector CNY 625 million, increasing by CNY 26 million or 4.43%. Wind sector CNY 4.043 billion, decreasing by CNY 566 million or 12.27%. Solar sector CNY 3.074 billion, increasing by CNY 831 million or 37.6%.

For the Hydro sector, in the first 9 months, the net profit was CNY 76 million, decreasing by CNY 28 million or 26.87%. For biomass sector, the net profit was negative CNY 19 million, increasing by CNY 434 million or 95.85%.

The company has achieved a great profit for our solar sectors. The unit profit for the solar was CNY 179.52 per megawatt hour. It has CNY 8.73 per megawatt hour, it's increase quarter-on-quarter or 5.11% increase.

A lot of reasons can explain that. First, the utilization hour in the third quarter for solar sector was 355 hours. It increased by 17 hours or 5.03%.

And from the -- in terms of the tariff, the tariff for our solar sector in the third quarter was CNY 394.23 per megawatt hour. It has CNY 8.83 per megawatt hour increase quarter-on-quarter. It increased by 2.29%.

The company has strengthened the operation management of our solar sector. In the third quarter, the cost and expense in the solar sector have decreased. The unit cost was CNY 181.39 per megawatt hour, decreasing by CNY 4.31 per megawatt hour quarter-on-quarter or 2.33% -- 2.32%.

After the implementation of the Document 136, the competition in the solar sector will be more fierce. The company will have more prudent investment in our solar projects and have a more strict selection to control the cost and the company will strengthen our research and try to have power generation that with profit. The other way is to control the construction cost.

The company also will strengthen the cooperation between the different types of energy and give full play to our management capability and enhance the competitiveness of solar sector.

[Interpreted]

What is the company's view on the capacity payment because we heard that in Gansu, they originally bought up the 330 coverage for the capacity. However, it should multiply a factor. So what is your view about this capacity payment and to the factor?

[Interpreted]

About the capacity payment of company. So in accordance with the renewable capacity that's being included in the market, there will be a full coverage in the capacity payment. And this is also mentioned in Document in the province like Gansu and Huaneng. About you mentioned the supply-demand factor impact. So as -- in our calculation, the supply and demand factor was calculated in the peak season of the whole year. So this factor multiplied is not a discount. So for the company, the major factor that impact our capacity tariff is our capability of peak season, our utilization in the peak season.

[Foreign Language]

[Interpreted] The next question comes from [indiscernible] Securities.

[Interpreted]

I have three questions. First, could you give us the tariff breakdown to power tariff and capacity tariff? And what is the year-on-year changes? Second, about the company's power generation. The company's coal power generation have decreased and is worse than the industry average. So could you give us the reason? Is that because of the maintenance or is the -- reasonable factor? And third, could you give us the ancillary services income in the third quarter?

[Interpreted]

The company's power generation was -- in the first quarter was 350.9 billion kilowatt hour, decrease by 2.93%. The coal power generation was 299.12 billion kilowatt hour, decreasing by 6.28%. Wind power generation was 30.276 billion kilowatt hour, increasing by 9.95%. Solar power generation was 20.687 billion kilowatt hour, increasing by 48.59%.

The company's thermal generation have decreased because of the following reasons. First, in terms of the structure, the renewable installation have rapid growth that have taken the shares of the thermal generation. Second, in terms of the market shares, the company's thermal unit market shares have decreased. Third, in terms of the strategies, the company have decreased the power generation to increase the profit in some spot market area.

The company's average tariff in the first 9 months was CNY 478.71 per megawatt hour, decreasing by 3.54% year-on-year. The average tariff for coal sector was CNY 465.87 per megawatt hour, decreasing by CNY 15.1 per megawatt hour. Gas sector, CNY 713.4 per megawatt hour, increasing by CNY 1.73 per megawatt hour. Wind sector, CNY 474.07 per megawatt hour, decreasing by CNY 44.96 per megawatt hour. Solar sector, CNY 392.46 per megawatt hour, decreasing by CNY 37.34 per megawatt hour.

The reason for the company's tariff decrease are as follows: first, the supply and demand balance was in a loose state in the third quarter; second, the long-term contract tariffs have decreased; and third, there is a lot of renewable projects that being put into operation that without that feed-in tariff for the company. So above the -- above factors can explain the average tariff decrease for the company.

In terms of the on-grid power sales, the coal sectors on-grid power sales was 258.358 billion kilowatt hour, decreasing by 7.1%. Gas sector 22.031 billion kilowatt hour, increasing by 4.23%. Wind 29.219, increasing by 8.9%. Solar 20.51 billion kilowatt hour, increasing by 47.73%. Hydro 0.078 billion kilowatt hour, decreasing by 4.26%. Biomass is 0.055 billion kilowatt hour, increasing by 17.4%.

For the capacity tariff in the first 9 months, the capacity payment in total was CNY 7.181 billion. It was CNY 27.85 per megawatt hour, and it increased by CNY 3.26 per megawatt hour. And the main reason for the increase because our power generation have decreased.

And about the company's ancillary services income in the first 9 months, the ancillary services income from peak and the frequency regulations, the total income was CNY 1.251 billion, decreasing by CNY 600 million. And the ancillary service income for the thermal sector was CNY 1.568 billion, and the ancillary services expense for the renewable sector was negative CNY 314 million. The ancillary services income have decreased because in some areas, it turned swift into a spot market, and there will no longer be an ancillary services market.

[Interpreted] The next question comes from Wu Jie of Haitong Securities.

[Interpreted]

I have three questions. First question about the coal consumption rate. So what is the company's coal consumption rate in the third quarter? And in the first half of the year, the coal consumption rate was 296 for the coal sector alone, and it has decreased comparing to the same period last year. I would like to ask a question is, what will be the outlook for the whole year's coal consumption rate?

And the second question, you just mentioned the capacity factor taking in the province Gansu. You said that only in the tightness period that we need to calculate the supply-demand factor. How can you calculate this number? And in my calculation, Gansu can get CNY 80 per megawatt hours capacity tariff. Would that be a correct calculation?

Third, in the first 3 quarters, the company have a great control in the cost and expense. I would like to ask, is there any further measures taken by the company? And what was the change? And what is the outlook for the cost and expense in the fourth quarter? Will there be any improvement?

[Interpreted]

The third quarter's coal consumption rate for our thermal sector was 304.33 grams per kilowatt hour. It decreased by 0.78 gram year-on-year. In the first 9 months 2025, the coal consumption rate for the thermal sector was 294.7 grams per kilowatt hour. It decreased by 1.82 grams year-on-year. The reason for the decrease was as follows: first, the company had put some high-efficiency gas units such as Nanjing, Jiangyin, and Dongguan into operation. It optimized our generation structure.

Second, the company has shut down and standed by some of our old coal units. It also optimized our structure. Third, the proportion of heat supply have increased. It dragged down the coal consumption rate.

[Interpreted]

Looking at the whole year, as we enter -- as we are entering the heat supply season, in the fourth quarter, the coal consumption rate will have a further decline. So in the whole year, the average coal consumption rate will be lower than the number of the first 3 quarters.

[Interpreted]

So about your questions about the full coverage of capacity payment in Gansu, I can explain by the following reason. First, the supply and demand factors calculation should consider the cross-region power transmission. If we consider the power transmission, the demand and supply was around the same level, and it will reach a balance. Second, the supply and demand ratio is calculated when the utilization was the highest. Mostly that will occur in the winter when wind and solar generation was relatively low. So if we consider above factors, we can see the supply-demand ratio will be around 1.

[Interpreted]

Please let me answer your question about the cost control. First, in terms of the accounting standards, the company -- the company used the actual occurring principle. So the cost occurs in accordance with our operation.

Second, the company has continuously taken measures to control our cost, especially from operations side. So if you see the unit cost for power sales, it has a continuously improvement.

And about the pace of our cost because in the first quarter, there might be more maintenance happen. The labor cost will be higher than the first 3 quarters. So we will consider that, but this is only a reference for you. The actual situation will be based on our actual maintenance.

[Interpreted]

Could you provide the coal consumption rate for our coal sector?

[Interpreted]

The coal consumption rate for our coal sector in the third quarter alone was 311.16 gram per kilowatt hour. The coal consumption rate in the first 9 months was 301.78 gram per kilowatt hour.

[Foreign Language]

[Interpreted]

The company's coal customer rate in the first 9 months decreased by 1.55 gram per kilowatt hour year-on-year.

[Interpreted] The next question comes from [indiscernible] Securities.

[Interpreted]

I have three questions. First, in the first 9 months for the company, we can see -- we achieved a great performance both in our market management as well as in our results. And could you talk about the company's market management target and -- in the future? Second, the [indiscernible] to have -- hold some conference to stabilize the tariff, stabilize the coal cost and promote the anti-involution. Could you talk about the differences between different provinces? Third, could you talk about the performance contribution from long-term contract side and spot market side? And could you give us some numbers on that?

[Foreign Language]

[Interpreted]

About your question of market management, the company attached great importance to the -- to our shares management. And in the beginning of the year, the company have released our regulation on that issue and the company also have researched the plans for the following steps.

However, the market value management's core or basis is the value creation. In the first 3 quarters this year, the company have tackled difficulties and achieved a sound result. We think that our performance can represent our effort in the market value management.

The company also researched into the instrument in the capital market, and the company will use methods such as dividend payout and the innovative way of finance in appropriate time to help with our market value. The company -- all those measures taken is aiming to increase our competitiveness in the market and help with the high-quality development. With all these measures, the company wish to increase the returns to our investors.

In the next step, the company will reinforce our management in capital market. The company will strengthen our information exposure and our Investor Relations management to enhance the operation and share the company's results with all our investors.

[Interpreted]

About your question of anti-involution in 2025 in September, the [indiscernible] have held a conference in order to stabilizing the tariff, stabilizing the coal price and push forward the anti-involution strategy. All this measure is used to guard against the vicious competition and to form a stable expectation to our tariff.

And for the measures taken, first from the fuel market, the fuel market will be to rebound and stable in 2026 and the improvement in the primary energy price will be a strong support to the tariff.

In terms of the coal power generation, the capacity tariff will be a very important adjustment. It will help the coal power generators to recover some of our fixed cost. It will improve our profitability.

In terms of the renewables, the government have announced in September '24, the self-contribution to the low carbon transition. So in -- by the end of 2035, the low -- the renewable consumption will be around 35% of total power consumption. The wind and solar capacity will be around 360 gigawatts. So in the future, the renewable capacity will maintain a high-speed growth and government will strengthen the guidance in renewable investment.

And from the policy side, the Document 136 will lay the foundation to the high-quality development of renewable, and it will provide some reasonable profit for renewable projects. So that will help to balance and keep a stable market situation for the development.

[Interpreted]

About your -- about your third question, firstly, let me give you some numbers in the first 3 quarters. The market-based power sales in the first 3 quarter for the company was 281.73 billion kilowatt hour. For coal, the market-based tariff -- market-based power sold was 257.173 billion kilowatt hour. Gas, 3.632 billion kilowatt hour. Wind, 13.148 billion kilowatt hour. Solar, 7.092 billion kilowatt hour.

In the mid- to long-term power purchase agreement, the coal power sales was 228 billion kilowatt hour; gas, 3.36 billion kilowatt hour; wind, 12.95 billion kilowatt hour; solar, 5.2 billion kilowatt hour. And the sales in the spot market for coal, it was 30.27 billion kilowatt hour. For gas, it was 0.027 billion kilowatt hour. For wind, it was 26 million kilowatt hour. For solar, it was 194 million kilowatt hour.

About the spot market participation in 2025. So in the first 3 quarters, the company's thermal spot market power sales have increased. The power sales was very stable. For renewable, the power sales via the spot market have increased, although the tariff of renewable have decreased because of the increased generation, the profit have increased.

So in the future, there will be a more close linkage between the spot market tariff and mid- to long-term market tariff. The tariffs will be decided by the supply and demand situation, the fuel cost and the demand of systematic regulation. So all the three factors might impact the market and the price will be more market-oriented.

[Foreign Language]

[Interpreted] Due to time constraints, we invite the last investor to ask. The last question comes from [indiscernible] Securities.

[Interpreted]

I have three questions. First, could you tell us the renewable capacity outlook in the fourth quarter? Second, could you give us the coal tariff and coal profit situation in the third quarter in province of Shandong and Gansu? Third, about the company's asset impairment. So in the third quarter, the asset impairment have decreased comparing to the same period last year. So could you talk about the reason? Is that because the company haven't run the test or because it is not necessary for a company to have asset impairment?

[Interpreted]

First, let me give you the situation of the company's power installation in the first 3 quarters. The company has put about 10.1 gigawatts into construction, including 7.1 gigawatts of renewable and 2.3 gigawatts of thermal power. And in the first 3 quarters, the company has put 10.29 gigawatts of units into operation, including 6.83 gigawatts of renewable and 3.64 gigawatts of thermal. The company's project that under construction amounted to 18.87 gigawatts, including 7 gigawatts of thermal and 11 gigawatts of renewable. And in the first quarter, there will be around 200 megawatts in [indiscernible] and 480 megawatts in [indiscernible] being put into operation.

In the first 3 quarter -- the above number were in the first 3 quarter, and I will give you the numbers of whole year's expectation. The company aim to add 14.19 gigawatts of units, including 41.92 gigawatts of gas and 4.2 gigawatts of wind and 5.8 gigawatts of solar.

And about situation in Shandong and Gansu, the average tariff for coal in Shandong was CNY 490 per megawatt hour, increasing by CNY 6.9 per megawatt hour. The tariff in Gansu was CNY 398 per megawatt hour, increasing by CNY 20.8 per megawatt hour. And we can see in those provinces, the long-term contracts have a very low signing, and that leads to a high tariff in spot market. And we can see this also from the profit, the coal sector's profit in Gansu was CNY 331 million and coal profit in Shandong was CNY 2.029 billion. However, the wind profit in Shandong was CNY 342 million and the wind profit in Gansu was CNY 67 million.

And from the change in the profit, we can see the coal profit in Shandong have increased by CNY 1.79 billion. The coal profit in Gansu have increased by CNY 583 million. And the wind profit in Shandong have decreased by CNY 144 million. The wind profit in Gansu have decreased by CNY 177 million.

[Interpreted]

Let me answer your question about the asset impairment. First, the company haven't had any sufficiency in our asset impairment.

First, let me introduce the principle in our asset impairment. We are trying to provide with our investor of a very authentic and realistic asset situation. So the asset impairment were in accordance with our operating and our asset standards.

So in this -- in order to realize this target, the company have a serious principle measures and procedures taken in the asset impairment.

The company will have the principle of fairness and consistency and run the evaluation test with the help of professional evaluator.

In the first quarter, the company's asset impairment was CNY 621 million, including Shang'an CNY 137 million, Luohuang CNY 254 million, Qingbei CNY 110 million. And all this asset impairment was taken in accordance with the asset impairment side.

In the future, the company will stick to our principles and have consistency in our measures and principle taken in assets impairment. We're also aiming to enhance the transparency of the release. We will release all those impairment size in our semiannual and annual report.

[Interpreted]

Thank you so much for all the questions and participation today. Finally, Mr. Wang would like to give us a summary.

[Interpreted]

Thank you for your participating and continued support. Here we come to the end of today's conference call. Please contact our IR department if you have any further questions. Thank you.

[Interpreted]

Thanks again for your attendance of the conference call regarding the third quarter results announcement of 2025. 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.]