Jilin Electric Power Co Ltd: A Financial Overview Amidst Challenges
In a recent financial disclosure, Jilin Electric Power Co Ltd, a prominent player in China’s power generation sector, reported a significant downturn in its half-yearly net profit for 2025. The company, listed on the Shenzhen Stock Exchange, saw its net profit plummet by 33.72% to 7.26 billion CNH. This decline is a stark contrast to the company’s performance over the past five years, where it maintained a generally stable financial condition.
Revenue and Profit Decline
The company’s total operating revenue for the period stood at 65.69 billion CNH, marking a 4.63% decrease from the previous year. This downturn in revenue has directly impacted the net profit, which has seen a substantial decline. The basic earnings per share have been reported at 0.20 CNH, reflecting the challenges faced by the company in maintaining its profitability.
Asset and Cash Flow Analysis
Despite the profit decline, Jilin Electric Power’s total assets at the end of the reporting period were valued at 882.82 billion CNH, with accounts receivable amounting to 113.61 billion CNH. The company’s cash flow from operating activities was positive, generating a net cash flow of 24.09 billion CNH. This indicates a robust operational capability, despite the challenges in revenue and profit.
Financial Highlights and Risks
The company has managed to maintain two significant financial highlights: a growth in net assets with an average annual increase of 35.05%, placing it at the forefront of its industry, and a net profit cash inclusion rate averaging 426.30%, ranking it among the top in its sector. However, the company faces a notable risk in its debt obligations, with a debt servicing ratio of 63.53%, indicating substantial pressure in debt repayment.
Overall Financial Health
Jilin Electric Power’s overall financial health is deemed satisfactory, with a total score of 2.94 out of 5, based on an evaluation by the samehui financial diagnosis model. The company’s asset quality and profitability are considered good, while its solvency is average. This mixed financial performance underscores the challenges and opportunities facing Jilin Electric Power in the competitive utilities sector.
Recent Developments
In addition to the financial report, Jilin Electric Power has announced new regulations for managing related-party transactions and updated its company charter as of August 2025. Furthermore, the company has made a public announcement regarding the issuance of its first batch of ultra-short-term financing bonds for 2025, indicating strategic moves to bolster its financial position.
Conclusion
Jilin Electric Power Co Ltd faces a challenging financial landscape, marked by a significant decline in net profit and revenue. However, the company’s strong asset base, positive cash flow from operations, and strategic financial maneuvers suggest a resilient foundation. As the company navigates through these challenges, its ability to manage debt and leverage its financial strengths will be crucial in maintaining its competitive edge in the power generation industry.