China General Nuclear 2025 Annual Report Analysis: Non-recurring Net Profit Down 15.13%, Financing Cash Flow Turns Losses to Profits with a 200.31% Increase

Core Profitability Indicators Under Pressure, Decline in Profit Quality

Slight decrease in operating revenue, main power business revenue contracts

In 2025, China General Nuclear Power Group achieved operating revenue of 75.7B yuan, down 4.11% year-on-year. In terms of revenue composition, power business revenue was 61.76B yuan, a 6.33% decline year-on-year, which is the main reason for the revenue decrease. Due to the overall decline in trading prices in the electricity market, the company’s average market electricity price decreased by approximately 8.8% year-on-year. Although the total grid-connected electricity volume of subsidiaries and joint ventures increased by 2.36% to 232.65B kWh, the negative impact of falling electricity prices outweighed the positive contribution from increased volume.

Net profit and non-recurring net profit both decline, profit quality deteriorates

Net profit attributable to shareholders of the listed company was 9.11B yuan, down 9.90% year-on-year; non-recurring net profit was 1.2B yuan, a 15.13% decrease, indicating a clear decline in profit quality. Quarterly data shows that in the fourth quarter, net profit was only 9.34B yuan, a significant drop from the average of 3 billion yuan in the previous three quarters, with annual profit showing a decreasing trend each quarter.

Per-share earnings decline in tandem

Basic earnings per share were 0.193 yuan/share, down 10.23% year-on-year; non-recurring earnings per share were 0.181 yuan/share, down 15.14%, consistent with the trend of net profit and non-recurring net profit, reflecting an overall decline in the company’s profitability.

Cost structure optimization, R&D investment contraction

Total expenses decrease by 7.75% YoY, structural optimization

In 2025, the company’s total expenses were 36.52M yuan, down 7.75% year-on-year. Among them, sales expenses, financial expenses, and R&D expenses all declined to varying degrees, while management expenses saw a slight increase, indicating an optimized expense structure.

Sales expenses drop sharply by 23.05%, market investment contracts

Sales expenses were 36.516 million yuan, a 23.05% decrease, mainly due to reduced market development investment by subsidiaries. As the trading rules in the electricity market stabilize gradually, the company’s market expansion investments have contracted.

Management expenses increase by 6.83%, intangible asset amortization rises

Management expenses reached 2.86B yuan, up 6.83%, mainly due to increased amortization of intangible assets. The company’s investments in technology R&D and intellectual property have entered amortization periods, pushing up management expenses.

Financial expenses decrease by 11.88%, debt financing costs decline

Financial expenses were 4.52B yuan, down 11.88%, benefiting from lower debt financing costs. The company optimized its debt structure, seized low-interest market opportunities to replace loans, effectively reducing financing costs. The annual debt financing interest rate ranged from 0.74% to 5.15%.

R&D expenses decrease by 21.53%, capitalized R&D investments decline

R&D expenses were 29.97B yuan, down 21.53%, mainly due to the type and progress of scientific research projects, leading to reduced expense recognition. However, the company’s R&D capitalization rate increased from 41.75% to 52.82%, with more R&D investments being converted into intangible assets.

Reduction in R&D personnel, ongoing structural optimization

At the end of 2025, the company’s R&D personnel numbered 4,240, a 6.69% decrease year-on-year. The proportion of R&D personnel fell from 21.25% to 18.49%. However, the structure of R&D staff further optimized: master’s degree R&D personnel increased by 12.94% to 1,964, accounting for 46.32%; R&D personnel under 30 years old increased by 38.38% to 822, indicating a trend of younger, higher-educated R&D teams, laying a talent foundation for long-term technological innovation.

Cash flow structure improves, financing turns profitable

Operating cash flow declines by 20.09%, weakening cash realization

In 2025, net cash flow from operating activities was 6.68B yuan, down 20.09% year-on-year. The main reason is that cash paid for purchasing goods and services increased by 8.99%, and the pace of electricity sales collection slowed, causing operating cash inflows to grow less than outflows, weakening cash realization.

Investment cash flow nearly flat, increased investment in projects under construction

Net cash flow from investing activities was -10.31M yuan, a 0.35% change, basically flat. Investment cash inflows increased by 119.16% year-on-year, mainly due to the shift of fixed deposits to current accounts and increased dividends from equity investments; investment cash outflows increased by 16.16%, mainly due to increased investments in nuclear power projects under construction. The number of nuclear units under construction rose from 8 to 16, with capacity increasing from 9,738 MW to 19,376 MW.

Financing cash flow turns positive, a significant increase of 200.31% YoY

Net cash flow from financing activities was 71k yuan, up 200.31%, achieving a turnaround from loss. The company increased borrowings to meet production, operation, investment, and debt repayment needs. Total financing cash inflows increased by 10.95% year-on-year, while outflows decreased by 1.20%, reflecting an optimized financing structure.

Multiple risks remain, ongoing attention and response needed

Rise in power sales risk

Some provinces where nuclear power units are located have loose power supply and demand, with declines in spot market prices and long-term contract trading prices year-on-year. Additionally, grid construction and extreme weather also impact power output. Despite increased market development efforts, downward pressure on market prices will persist, requiring close monitoring of the company’s trading strategy adjustments.

Increased pressure on construction project management

In 2025, the number of nuclear power units under construction managed by the company increased from 8 to 20 (including 4 entrusted to controlling shareholders), capacity from 9,738 MW to 24,222 MW, with the “Hualong One” batch construction advancing comprehensively. The large increase in project quantity and scale raises higher requirements for safety, quality, progress, and cost control, necessitating attention to the adaptability and effectiveness of the company’s project management system.

Exchange rate and interest rate fluctuation risks

The company holds foreign currency debt; fluctuations in EUR/RMB exchange rates will affect foreign exchange gains and losses. Market interest rate fluctuations will impact debt financing costs. Although the company manages risks through forward foreign exchange hedging and optimizing debt maturity structures, bidirectional fluctuations in exchange rates and interest rates may still affect its financial condition.

Stable executive compensation, reasonable core management salaries

In 2025, the company’s total compensation for directors, supervisors, and senior management was 10.312 million yuan, with a stable compensation structure:

• Chairman Yang Changli received no pre-tax remuneration from the company during the reporting period, with his salary paid by China General Nuclear Power Group;
• President Pang Songtao, who only started receiving salary from the company in December 2025, earned 71k yuan pre-tax for the year;
• Former President Gao Ligang received 1.93M yuan pre-tax for the year;
• CFO Yin Engang received 2.02 million yuan pre-tax;
• Vice Presidents Qin Yuxin, Zhou Jianping, Liu Haijun earned 1.98M, 2.1M, and 1.917 million yuan pre-tax, respectively.

Senior management compensation is linked to annual performance assessments, with results rated as good or above, aligning compensation levels with company performance and industry standards.

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