Gelonghui, August 2 | Shenwan Hongyuan's research indicates that due to pressure on thermal power, Huaneng International (600011.SH)'s Q2 performance declined month-on-month, and the financial situation continued to improve. The feed-in electricity volume for Q24's coal engines and combustion engines was 78.133 and 5.18 billion degrees, respectively, down 9.65% and 7.28% year-on-year. The decline in feed-in electricity volume led to a total pre-tax profit of 1.155 and 0.034 billion yuan in domestic coal, gas, and electricity in the second quarter, a significant decrease from the first quarter. The long-term loan size of 1H24 declined again year on year, and the balance ratio fell further to 68.05%, remaining below the 70% red line. I am optimistic that the company's financial expenses will continue to decline and enhance the company's performance. Considering the current continuous decline in the prices of fan equipment and photovoltaic modules, the company is expected to accelerate the pace of new energy installations and ensure the achievement of the “14th Five-Year Plan” new energy plan target of 45% clean energy installed and a total installed capacity of wind power photovoltaics exceeding 40 million kilowatts. Based on the significant improvement in the company's cash flow, the decline in coal prices since '24, and the continuation of the trend of high growth in new energy installed capacity, the “increase in holdings” rating was maintained.