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●Huang Cong, reporter of Yangtze Business Daily

As the world's largest listed hydropower company, China Yangtze Power's hydropower installed capacity will increase again.

On July 20, China Yangtze Power (600900.SH) issued an announcement showing that the company's board of directors agreed that Hunan Youxian Pumped Storage Power Co., Ltd. would invest in the construction of the Guanghanping Pumped Storage Power Station project in Youxian, Hunan, with a total investment of no more than 10.997 billion yuan, of which capital would account for 20% of the total investment.

While expanding in size, Yangtze Power also returns "real money" to shareholders. Historically, the company has distributed dividends 21 times since its listing, with a total amount of 184.196 billion yuan.

In the secondary market, Yangtze Power is a ten-year "long bull" stock. Since July 2014, the company's stock price has continued to rise amid fluctuations. As of the close of July 19, the company's stock price reached 30.58 yuan per share, an increase of about 36% this year, and the total market value reached 748.238 billion yuan, setting a record high.

In the first half of the year, the power generation of the six cascade power stations increased by 16.86%

China Yangtze Power was established on September 29, 2002 and was listed on the Shanghai Stock Exchange in November 2003. In September 2020, the company's "Shanghai-London Stock Connect" global depositary receipts were listed and traded on the London Stock Exchange in the UK.

According to information, China Yangtze Power is mainly engaged in hydropower generation, pumped storage, smart integrated energy, new energy, investment and financing, and power distribution and sales businesses. Its operating areas cover China, Peru, Brazil, Pakistan and other countries. It is China's largest listed power company and the world's largest listed hydropower company.

Hydropower has the characteristics of being renewable, pollution-free, technologically mature, and having strong peak-shaving capabilities. Against the background of the country's carbon peak and carbon neutrality strategies, the clean energy advantages of hydropower are becoming increasingly prominent.

In 2023, the six cascade power stations under China Three Gorges Corporation in the country completed a power generation of 276.263 billion kWh, an increase of 14.015 billion kWh year-on-year, a growth of 5.34%.

It is worth mentioning that China Yangtze Power has focused on its main responsibilities and businesses to carry out overseas investments in areas such as large hydropower, new energy, regional energy platforms, smart integrated energy, and overseas markets. The annual contribution of investment income has increased from approximately RMB 1.3 billion at the beginning of the 13th Five-Year Plan to approximately RMB 4.75 billion in 2023, with a multi-year compound growth rate of 20%. The proportion of investment income to total profit is approximately 15%.

Among them, in 2023, China Yangtze Power will start the construction of the main project of the Zhangye Pumped-Storage Power Station in Gansu, and will be fully entrusted with the operation and maintenance of the Changlongshan Pumped-Storage Power Station in Zhejiang. It will also acquire 2.4 million kilowatts of pumped-storage project resources in Xiuning, Anhui and Ningxiang, Hunan within the year.

The 2023 annual report shows that the total installed hydropower capacity of China Yangtze Power is 71.795 million kilowatts, of which domestic hydropower installed capacity is 71.695 million kilowatts, accounting for 17.01% of the country's hydropower installed capacity.

In the future, the installed capacity of hydropower of China Yangtze Power will increase again.

On July 20, China Yangtze Power issued an announcement showing that the company's board of directors agreed that Hunan Youxian Pumped Storage Power Co., Ltd. would invest in the construction of the Guanghanping Pumped Storage Power Station project in Youxian County, Hunan, with a total investment of no more than 10.997 billion yuan, of which capital would account for 20% of the total investment.

In recent years, China Yangtze Power's performance has continued to grow.

In 2023, the operating income of China Yangtze Power reached 78.112 billion yuan, a year-on-year increase of 13.43%; the net profit reached 27.239 billion yuan, a year-on-year increase of 14.81%.

In the first quarter of 2024, China Yangtze Power's operating income reached 15.641 billion yuan, a year-on-year increase of 1.58%; net profit reached 3.967 billion yuan, a year-on-year increase of 9.80%.

Recently, China Yangtze Power released an announcement on the completion of its semi-annual power generation in 2024, showing that in the first half of 2024, the total power generation of the company's six cascade power stations in the country was about 120.618 billion kWh, an increase of 16.86% over the same period last year. Among them, in the second quarter of 2024, the total power generation of the company's six cascade power stations in the country was about 67.871 billion kWh, an increase of 42.54% over the same period last year.

The stock price has risen by about 36% this year.

While its performance was growing, China Yangtze Power was also actively returning rewards to investors.

Recently, China Yangtze Power released its 2023 profit distribution plan. The company plans to distribute 8.2 yuan (including tax) for every 10 shares, with a total estimated cash distribution of 20.064 billion yuan, accounting for 73.66% of net profit. This is the second consecutive year that its dividend amount has exceeded 20 billion yuan. Calculated at the average transaction price in 2023, the company's dividend yield is 3.74%.

In fact, this is the 21st dividend distribution since China Yangtze Power went public. Previously, the company's cumulative dividend amount was 164.132 billion yuan, making it one of the 18 stocks with cumulative dividends exceeding 100 billion yuan. Including the dividends in 2023, the company's cumulative dividend amount is as high as 184.196 billion yuan.

From 2016 to 2020, the net profit of China Yangtze Power was RMB 20.781 billion, RMB 22.261 billion, RMB 22.611 billion, RMB 21.543 billion and RMB 26.298 billion, respectively, and the dividend amounts in the same period were RMB 15.688 billion, RMB 14.960 billion, RMB 14.960 billion, RMB 14.960 billion and RMB 15.919 billion, respectively.

In 2021 and 2022, the net profit of China Yangtze Power was RMB 26.273 billion and RMB 21.309 billion respectively, and the dividend amounts in the same period were RMB 18.541 billion and RMB 20.092 billion respectively.

Among them, in 2022, the dividend amount of China Yangtze Power accounted for more than 94% of its net profit, the highest dividend amount and the highest dividend ratio in all previous years.

Moreover, since its listing, China Yangtze Power has issued additional shares five times, with a cumulative actual net amount of funds raised of 118.58 billion yuan, and the company's dividend amount exceeded the amount of funds raised.

In the secondary market, by the end of 2023, the market value of China Yangtze Power exceeded 580 billion yuan for the first time, ranking first among domestic listed power companies.

Since 2024, the share price of China Yangtze Power has continued to rise amid fluctuations. As of the close of July 19, the company's share price reached 30.58 yuan per share, with a year-to-date increase of approximately 36%. The total market value reached 748.238 billion yuan, a record high.

If we look at a longer period of time, China Yangtze Power has been a ten-year "bull" stock. Since July 2014, the company's stock price has continued to rise amid fluctuations.

China Yangtze Power said that in the future, the company will continue to strengthen its core competitiveness, deepen quality and efficiency improvements, continuously enhance its market value management capabilities, strive to create a world-class clean energy listed company with hydropower as its core, create long-term, stable and sustainable investment returns for shareholders, and contribute due strength to the high-quality development of the national economy.

It is worth mentioning that in June 2024, an announcement from China Yangtze Power showed that the company's board of directors elected Director Liu Weiping as the company's chairman.

The announcement shows that Liu Weiping was born in November 1964, has a university degree, is a professor-level senior engineer, and has been engaged in water conservancy work for a long time.

According to his resume, Liu Weiping has served as director of the Reservoir Resettlement Development Bureau of the Ministry of Water Resources, president and party secretary of the China Water Resources and Hydropower Planning and Design Institute, chairman of China Water Resources North Survey, Design and Research Co., Ltd., chairman of China Water Resources Northeast Survey, Design and Research Co., Ltd., director of the Construction and Management Department of the Ministry of Water Resources, chief engineer of the Ministry of Water Resources, vice minister and member of the party group of the Ministry of Water Resources, and is currently the chairman and party secretary of China Three Gorges Corporation and chairman of China Yangtze Power Co., Ltd.