Electric power industry: Hydroelectricity and power generation are subject to stable profitability in the power supply industry

From January to September, the profits of industrial enterprises nationwide increased by 27% year-on-year. From January to September, the industrial enterprises above designated size achieved a profit of 3.7 trillion yuan, a year-on-year increase of 27%. Under the influence of the macroeconomic policies of the national adjustment structure, industrial profits have maintained a relatively rapid growth, but the cumulative growth rate has declined since the second quarter.

The rapid increase in power supply performance and overall reduction in power generation profits. The total profits of the industry from January to September totaled 108.8 billion yuan, up 1% year-on-year; total profits from July to September totaled 41.1 billion yuan, down 9% year-on-year. Among them, for the electronics industry to benefit from a good increase in electricity demand, profit growth is faster, is the support of the entire power industry, accounting for 47% of industry profits. The electronics industry, although the overall power generation achieved growth, but due to the increase in thermal power fuel and water and water during the flood season, the overall decline in profitability.

The demand for electricity is more optimistic, and grid profits remain stable. The total profit of the electronics industry from January to September was 611.4 billion yuan, an increase of 31% year-on-year; total profit from July to September was 22.3 billion yuan, a year-on-year increase of 19%. In the first three quarters, the country’s electricity demand was good, up 12% year-on-year, which led to a rapid growth in power grid performance. In the fourth quarter, due to the low base of electricity consumption due to energy saving and emission reduction last year, the growth rate will remain stable, and grid profitability will be more optimistic.

Rising coal prices dragged down thermal power, and profitability has not improved. The total profit of the fire electronics industry from January to September was 10.4 billion yuan, a year-on-year drop of 50%; the total profit from July to September was 1.7 billion yuan, a year-on-year drop of 58%. Affected by the increase in electricity demand, reduction in hydropower generation, and the increase in electricity prices in some regions, thermal power operating revenue increased by 19% year-on-year, but due to rising fuel costs and financial costs, gross profit margin dropped to 7.3%, which is in a meager state.

The entire hydropower system is subject to incoming water, and it appears that the performance improvement will look like a year. The total profit of the water electronics industry from January to September was 23.5 billion yuan, a year-on-year decrease of 21%; the total profit from July to September was 12.9 billion yuan, a year-on-year decrease of 37%. The major rivers in the country had a relatively low level of total water supply, which resulted in a year-on-year decrease in hydropower generation from January to September, and a significant year-on-year drop in profits. In July-September, the flood season was in the main flood season, and the decline in profitability was even more pronounced.

The power generation industry did not give power, and overall earnings growth slowed. It is expected that the electric power and heat industry's operating income from January to November will be 4.0255 trillion yuan, a year-on-year increase of 16%, and the total profit will be about 143.5 billion yuan, an increase of 2% year-on-year.

The increase in revenue was mainly due to better electricity demand, while the decline in profitability was mainly due to the decline in the profitability of the electronics industry.