China Yangtze Power Co., Ltd. — Strategic Outlook and Recent Developments

China Yangtze Power (600900) continues to cement its position as a leading green‑energy producer while navigating a landscape of ambitious investment plans and regulatory engagement. The company’s recent communications reveal a clear trajectory toward diversification within the hydropower sector, enhanced operational efficiency, and robust shareholder returns.

1. Reinforcing the Green‑Energy Narrative

The company reiterated that green, low‑carbon development is the industry’s fundamental trend. It underscored the necessity for energy enterprises to balance energy security with accelerated diversification into clean technologies. By positioning itself as a green‑energy pioneer, China Yangtze Power signals confidence in the long‑term viability of hydropower and other renewable sources.

2. Capital Allocation and Investment Strategy

2.1 2025 Investment Plan

  • Total planned investment: ¥163.56 billion.
  • Fixed‑asset investment: ¥136.36 billion.
  • Equity‑project investment: ¥27.20 billion.

The firm highlighted that these funds are earmarked for joint hydropower dispatch in the Yangtze River basin, renewable‑energy projects, and regional clean‑energy initiatives. While specific project allocations were not disclosed in detail, the company has encouraged investors to monitor forthcoming annual reports and interim announcements for granular insights.

2.2 Major Project – GZB Hydropower Expansion

In July, the company announced a ¥26.6 billion investment in the Gezhouba (GZB) hydropower expansion project. The initiative is projected to yield an average net profit margin of 83 % over the past three years. The company confirmed that its strong balance sheet and liquid financing channels provide a stable foundation for both core‑business capital expenditure and shareholder dividends.

3. Operational Excellence and Technological Innovation

3.1 Water‑Power Plant Maintenance and R&D

China Yangtze Power is actively pursuing advanced R&D in water‑power plant operation and maintenance (O&M), focusing on:

  • AI‑assisted management of hydropower and pumped‑storage plants.
  • Development of more efficient hydraulic turbines.
  • Smart grid dispatch and real‑time scientific scheduling.

These efforts aim to enhance the core operating efficiency of existing assets and create new value propositions in emerging energy markets.

3.2 Renewable Energy and Smart Energy Integration

The company is investing in smart integrated energy solutions, combining water, wind, solar, and other renewables. Demonstration projects and research collaborations are underway to validate these technologies, positioning China Yangtze Power as a potential leader in multi‑energy synergy.

4. Green‑Certificate (GEC) Activities

China Yangtze Power confirmed that its conventional hydropower assets qualify for green‑energy certificates (GECs), aligning with national policy that includes hydropower within the GEC issuance framework. The company is actively negotiating with state power grid operators, provincial utilities, and the China Power Trading Center to facilitate GEC transfer and participate in green‑energy trading.

5. Shareholder Relations and Corporate Governance

  • Dividends: An 8 month announcement pledged a minimum 70 % dividend payout over the next five years. The board emphasized that sufficient liquidity is maintained to sustain both dividends and ongoing investments.
  • Share Repurchase: The company disclosed no current share‑repurchase plans, indicating that capital is prioritized for growth and shareholder returns.
  • Major‑Shareholder Activity: As of 29 October 2025, the largest shareholder had acquired 90.7 million shares (≈¥25.3 billion), with the full planned stake still pending.

6. Regulatory and Market Context

China Yangtze Power’s activities were highlighted during a “M&A, Strengthening, and Consolidation” seminar hosted by the Beijing Listed Company Association (北上协) in late November. The event, overseen by the Beijing Securities Regulatory Bureau, underscored the sector’s importance in national energy policy and the strategic value of leading utilities in driving industry consolidation.

In the broader market, the Green Energy ETF (562010) experienced a modest 0.76 % decline on 17 November, while China Yangtze Power itself recorded a 0.11 % gain within the index, reflecting investor confidence in the company’s green‑energy credentials.

China Yangtze Power’s integrated strategy—combining substantial capital deployment, technological advancement, and a clear commitment to shareholder value—positions it to capitalize on China’s renewable‑energy momentum while maintaining fiscal prudence. The company’s proactive engagement with regulators, investors, and industry peers signals a forward‑looking stance that is likely to sustain its leadership role in the evolving utility landscape.