- China Power Investment Corporation has posted a RMB 8.76 billion net profit for 2016, as reported by Securities Times.
- The group’s operating profit was RMB 13.2 billion.
Why It Matters:
- China Power Investment Corporation is one of five largest power generation groups in China. The group focuses on renewable energy, with nuclear power and solar energy accounting for a large component of the group’s income.
- The income of Chinese power plants came under pressure in 2016. Electricity prices was adjusted downwards due to the decreasing price of coal. However, the trend in the coal price reversed, and the price hit a record high due to speculation. The electricity price was no readjusted, so Chinese power plants’ profits were hit.
- The coal and power industries have become the next target in the Chinese government’s consolidation campaign. The China Power Investment Corporation might outperform due to its renewable energy strength.