Good afternoon, ladies and gentlemen. On behalf of Huaneng Power International, Incorporated, I would like to welcome you all to the conference call regarding third-quarter results announcement of 2025. [Foreign language]. Now, may I introduce the management of the company today? [Foreign language], the Chairman of the company, Mr. Wang Kui. [Foreign language]. [Foreign language]. [Foreign language], the independent director of the company, Ms. Zhang Liy ing. [Foreign language]. [Foreign language]. [Foreign language], the Vice President, General Counsel, and Chief Compliance Officer of the company, Mr. Qin Haifeng. [Foreign language]. [Foreign language]. [Foreign language] the vice president and board secretary of the company, Mr. Huang Chaoquan. [Foreign language]. [Foreign language]. [Foreign language], people in charge of the related departments are also joining us in this meeting. [Foreign language]. First of all, the Chairman of the company, Mr. Wang, will reveal the business performance for the third-quarter results of 2025, followed by the Q&A session. [Foreign language]. May we have the honor to invite Mr. Wang to review the business performance and Ms. Liu Tianyu to conduct the English interpretation? [Foreign language]. Ladies and gentlemen, good afternoon. Welcome to the Third-Quarter Result Conference Call of Huaneng Power International. [Foreign language] Yesterday, the company released the third-quarter results. Please let me give a brief introduction. [Foreign language]. In the third quarter, under the leadership of the board of directors, the company centered on annual targets, identified and responded to the changes, overcame difficulties, and pushed forward operation, transition, innovation, and overseas management, achieved a record-high operating performance, and laid a solid foundation for high-quality accomplishment of annual tasks. [Foreign language]. Under the Chinese accounting standard, the company achieved a consolidated operating revenue of CNY 172.975 billion, decreasing by 6.19%. Net profit attributable to company shareholders was CNY 14.841 billion, increasing by 42.52%. The earnings per share was CNY 0.81. [Foreign language]. In terms of the power generation, the company pushed forward the green transition. With the installed capacity of wind and solar increasing, the renewable power generation increased year on year. However, affected by oversupply and market share being taken by the renewables, coal generation decreased year on year. In the first three quarters, the company's domestic on-grid power sales was 331.451 billion kilowatt-hours, decreasing by 2.87%. The average tariff was CNY 478.71 per megawatt-hour, decreasing by 3.54%. [Foreign language]. In terms of coal supply, the company seized the opportunities. Optimized procurement strategy, improved the quality of contracted coal, purchased low-cost spot market coal, and optimized inventory structure, achieving significant results in cost control. The standard coal price of the first three quarters was CNY 892.34 per ton, a year-on-year decrease of 11.01%. [Foreign language]. In terms of the development, the company continued the low-carbon transition, focusing on quantity and quality, tracked the implementation of policies, carried out regional policy research to optimize investment strategies. In the first three quarters, the company added 10.3 GW of units, including 6.83 GW of renewables and 3.46 GW of gas units. By the end of September, the company's installed capacity reached 155 GW, wind and solar capacity reached 44.66 GW, low-carbon clean energy accounts for 40.15% of total capacity. [Foreign language]. In terms of overseas operation, Tuas Power researched the Singapore power market, ensured stable supply of fuel, optimized the strategies and management. The profit before tax of the first three quarters was CNY 1.754 billion. The performance of Sahiwal Power Plant in Pakistan remained stable. The profit before tax was CNY 697 million. [Foreign language] In the fourth quarter, the company will focus on annual development goals, research the policies and market environment, adhere to the constraints of target yields, build high-quality projects, and steadily push forward the green and low-carbon development. The company will track changes in the coal market, optimize the procurement structure, prepare for the next year's contract signing, and control the fuel cost. The company will research the trends of generation and tariffs, actively respond to policy and market challenges, work on the signing of power purchasing agreements, coordinate volume and price, and increase profitable generation. The company will strengthen fund management, maintain a stable financing structure, funding for energy security and green transition. [Foreign language] Facing a complex market environment, the company will prioritize high-quality and steady growth, improve operating efficiency, ensure the successful conclusion of the 14th Five-Year Plan. The company will study, implement, and carry out the spirit of the Fourth Plenary Session, focus on dual carbon goals and energy security policies, systematically plan the strategies for the 15th Five-Year period, and lay a solid foundation for further high-quality transformation and development. {Foreign language] Now, my colleague and I would like to answer your questions. Thank you. [Foreign language] Thank you, Mr. Wang. Here we come to the Q&A session. [Foreign language]To register your questions, please press star followed by one on your telephone keypad. Thank you. [Foreign language]. Please state your name and your organization before question raised. [Foreign language] The first question comes from Liu Xianda of Citibank. [Foreign language] I have three questions. First, in the third quarter, the company has achieved sound profitability, mainly due to the unit fuel cost decrease. Could you talk about the reason? Is there any one-off item such as the increase of spot market purchase and overseas purchase? In the fourth quarter and 2026, what will be the company's unit fuel cost outlook? Will that have a further decrease? Second, as the government has recently announced a plan in the 15th Five-Year period, what will be the company's target of the 15th Five-Year period? What will be the company's investment focus in the future? Third, as we see from the news that we have a value-added tax refund for renewables, what is the profit impact to the company? In the fourth quarter, will the company have any asset impairment taken in wind and solar projects? [Foreign language] In the third quarter, the company's fuel costs have decreased because the company has dug into the strategies to consume in the peak season and purchase in the off-season. The company has purchased both from the spot market and the overseas market and tried to find the bottom spot of the coal prices and to control the company's coal cost. In the fourth quarter, we will begin the peak season for coal market. The company has already purchased the coal from the market to help stabilize the coal price. In 2026, according to the supply and demand situation, the company will have our coal purchasing strategy in the light of the Document 136. As the renewable capacity installation will be stable in the future, we think the power generation taken by the renewable will be stabilized. [Foreign language] As 2026 is the beginning year of the 15th five-year period, we think the government will try to stabilize the macroeconomy and the economy will have a recovery. [Foreign language] In the environment that the government is strengthening the inspection of oversupply and environment, we think the coal price will hit bottom and rebound in the future. [Foreign language] Now the company is working on editing the 15th Five-Year Plan. The company's plan will be in accordance with the government and industry plan. [Foreign language] The company will insist on the transition in green and low carbon development. The company will continue our investment in renewables, and the company, we think, in the next period will still have high-speed growth in renewables. The company will strive for high-quality development. [Foreign language] In terms of our coal development, the company will have some replacement projects for our old and outdated units, and we will focus on the areas that have high consumption of power. With all these measures taken to optimize our power generation structure and our generation structure for the coal sector. [Foreign language] About your questions about the refund of VAT tax, as we know from the authorities, there will be change for the value-added tax for renewables. For onshore wind, the 50% refund of VAT will be canceled November 1st, and for offshore wind, the VAT refund will be canceled in 2027. [Foreign language] There will be limited impact to the company, and we see the numbers from our operating in renewables recently, the input VAT is higher than the output VAT. I can give you the number, in 2024, only CNY 100 million-CNY 200 million of VAT, and we don't have any VAT related to our offshore wind. [Foreign language] In the future, the company will track the policy change and keep to invest in the high-quality renewable projects to decrease the cost, and the company will try to increase the efficiency to tackle this policy change. [Foreign language] [Foreign language] The next question comes from Li Yalin of Huatai Securities. [Foreign language] I have three questions. First, could you give us the market-based tariff in the third quarter and the year-over-year changes, as well as the quarter-on-quarter changes in market-based tariff? Could you give us some information about the signing of power purchase contracts in 2026? Second, could you give us the profit breakdown by different energy sectors in the third quarter alone? Third, we can see from the company's results that from the second quarter to the third quarter, the company's solar performance was leading the industry. Could you talk about why we have leading performance in solar? [Foreign language] The average tariff for our wind project was CNY 460 per megawatt hour, decreasing by 14% year-over-year and 2% quarter-on-quarter. Tariff of solar was CNY 394 per MW h, decreasing by 9% year-over-year and increased by 2% quarter-on-quarter. In the first nine months, the tariff for wind was CNY 474 per megawatt hour, decreasing by 8.3%. In the first nine months, the tariff for solar was CNY 392 per megawatt hour, decreasing by 8.8%. [Foreign language] According to the government requirement, from 2026, in the areas such as Yunnan and Sichuan that have a faster growth rate, faster transition for the coal power, the capacity payment will be increased to no less than 70% of our fixed cost, and for other areas, this number will raise to 50%. After the capacity payment was raised, we have a better recovery capability of our fixed cost. The competitive pressure will be released in terms of the trading, so the monthly and annually based long-term contract purchase will still be 80%- 90% of our total market-based tariff. Other will be complemented by the spot market. [Foreign language] Currently, the signing of 2026 contract hasn't begun yet. We estimated that it will begin by the end of November. For now, the cost of primary energy was relatively low; however, it will rebound in the long run, and the local government still required a tariff cut. It is estimated that in 2026, the range of the contract tariff will change based on the capacity tariff. However, we think the capacity tariff plus the power tariff will have a slight decrease comparing to 2024. [Foreign language] Please let me give you the numbers of net profit breakdown to different energy sectors in the first nine months. For the coal sector, CNY 10.819 billion, increasing by CNY 5.765 billion, or 114.05%. Gas sector, CNY 625 million, increasing by CNY 26 million, or 4.43%. Wind sector, CNY 4.043 billion, decreasing by CNY 566 million, or 12.27%. Solar sector, CNY 3.074 billion, increasing by CNY 831 million, or 37.06%. [Foreign language] For the hydro sector, in the first nine months, the net profit was CNY 76 million, decreasing by CNY 28 million, or 26.87%. For biomass sector, the net profit was negative CNY 19 million, increasing by CNY 434 million, or 95.85%. [Foreign language] The company has achieved a great profit for our solar sectors. The unit profit for the solar was CNY 179.52 per megawatt hour. It has an CNY 8.73 per megawatt hour increase quarter-on-quarter, or 5.11% increase. [Foreign language] A lot of reasons can explain that. First, the utilization hour in the third quarter for solar sector was 355 hours. It increased by 17 hours, or 5.03%. [Foreign language] From the tariff in terms of the tariff, the tariff for our solar sector in the third quarter was CNY 394.23 per megawatt hour. It has an CNY 8.83 per megawatt hour increase quarter-on-quarter. It increased by 2.29%. [Foreign language] The company has strengthened the operation management of our solar sector. In the third quarter, the cost and expense in the solar sector have decreased. The unit cost was CNY 181.39 per megawatt hour, decreasing by CNY 4.31 per megawatt hour quarter-on-quarter, or 2.32%. [Foreign language] After the implementation of Document 136, the competition in the solar sector will be more fierce. The company will have more potent investment in our solar projects and have a more strict selection to control the cost, and the company will strengthen our research and try to have power generation that with profit. The other way is to control the construction cost. [Foreign language] The company also will strengthen the cooperation between the different types of energy and give full play to our management capability and enhance the competitiveness of solar sector. [Foreign language] What is the company's view on the capacity payment? Because we heard that in Gansu, they originally brought up the 330 coverage for the capacity; however, it should multiply a factor. So what is your view about this capacity payment and the factor? [Foreign language] About the capacity payment of company, so in accordance with the renewable capacity that's being included in the market, there will be a full coverage in the capacity payment. This is also mentioned in document in the province like Gansu and Liaoning about you mentioned the supply demand factors impact. In our calculation, the supply and demand factor was calculated in the peak season of the whole year. This factor multiplied is not a discount. For the companies, the major factor that impact our capacity tariff is our capability of peak season, our utilization in the peak season. Thank you. [Foreign language] [Foreign The next question comes from Song Yingying of China Merchants Securities. [Foreign language] I have three questions. First, could you give us the tariff breakdown to power tariff and capacity tariff, and what is the year-on-year changes? Second, about the company's power generation. The company's coal power generation has decreased and is worse than the industry average. So could you give us the reason? Is that because of the maintenance, or is the reason reasonable factor? And the third, could you give us the answer to service income in the third quarter? [Foreign language] The company's power generation in the first three quarters was 350.9 billion KWh, decreased by 2.93%. The coal power generation was 299.12 billion KWh, decreasing by 6.28%. Wind power generation was 30.276 billion KWh, increasing by 9.95%. Solar power generation was 20.687 billion KWh, increasing by 48.59%. [Foreign language] The company's thermal generation has decreased because of the following reasons. First, in terms of the structure, the renewable installation has had rapid growth that has taken the shares of the thermal generation. Second, in terms of the market shares, the company's thermal unit market share has decreased. Third, in terms of the strategies, the company has decreased the power generation to increase the profit in some spot market areas. [Foreign language] The company's average tariff in the first nine months was CNY 478.71 per megawatt hour, decreasing by 3.54% year-on-year. The average tariff for coal sector was CNY 465.87 per megawatt hour, decreasing by CNY 15.1 per megawatt hour. Gas sector CNY 713.4 per megawatt hour, increasing by CNY 1.73 per megawatt hour. Wind sector CNY 474.07 per megawatt hour, decreasing by CNY 44.96 per megawatt hour. Solar sector CNY 392.46 per megawatt hour, decreasing by CNY 37.34 per megawatt hour. The reason for the company's tariff to decrease are as follows. First, the supply and demand balance was in a loose state in the third quarter. Second, the long-term contract tariff have decreased. Third, there is a lot of renewable projects that have been put into operation without that feed-in tariff for the company. The above factors can explain the average tariff decrease for the company. [Foreign language] In terms of the on-grid power sales, the coal sector's on-grid power sales was 258.358 billion kilowatt hours, decreasing by 7.1%. Gas sector 22.031 billion kilowatt hours, increasing by 4.23%. Wind 29.219 billion kilowatt hours, increasing by 8.9%. Solar 20.51 billion kilowatt hours, increasing by 47.73%. Hydro 0.078 billion kilowatt hours, decreasing by 4.26%. Biomass is 0.055 billion kilowatt hours, increasing by 17.4%. [Foreign language] For the capacity tariff in the first nine months, the capacity payment in total was CNY 7.181 billion. It was CNY 27.85 per megawatt hour, and it increased by CNY 3.26 per megawatt hour. The main reason for the increase is because our power generation has decreased. [Foreign language] About the company's ancillary services income in the first nine months, the ancillary services income from peak and frequency regulations, the total income was CNY 1.251 billion, decreasing by CNY 600 million. The ancillary service income for the thermal sector was CNY 1.568 billion. The ancillary services expense for the renewable sector was negative CNY 314 million. The ancillary services income has decreased because in some areas it turned swift into a spot market, and there will no longer be an ancillary services market. 好[Foreign language] [Foreign language] The next question comes from Wu Jie of Guotai Junan Securities. [Foreign language] I have three questions. First question about the coal consumption rate. What is the company's coal consumption rate in the third quarter? In the first half of the year, the coal consumption rate was 296 g for the coal sector alone, and it has decreased comparing to the same period last year. I would like to ask what will be the outlook for the whole year's coal consumption rate? The second question, you just mentioned the capacity factor taken in the province Gansu. You said that only in the tightness period that we need to calculate the supply demand factor. How can you calculate this number? In my calculation, Gansu can get CNY 80 per megawatt hours capacity tariff. Will that be a correct calculation? Third, in the first three quarters, the company has great control in the cost and expense. I would like to ask, is there any further measures taken by the company, and what was the change, and what is the outlook for the cost and expense in the fourth quarter? Will there be any improvement? [Foreign language] The third quarter's coal consumption rate for our thermal sector was 304.33 g per kilowatt hour. It decreased by 0.78 g year-on-year. In the first nine months of 2024, the coal consumption rate for the thermal sector was 294.7 g per kilowatt hour. It decreased by 1.82 g year-on-year. The reason for the decrease was as follows. First, the company had put some high-efficiency gas units such as Nanshan, Liangjiang, and Dongguan into operation. It optimized our generation structure. Second, the company has shut down and put on standby some of our old coal units. It also optimized our structure. Third, the proportion of heat supply has increased. It dragged down the coal consumption rate. [Foreign language] Looking at the whole year, as we enter, as we are entering the heat supply season, in the fourth quarter, the coal consumption rate will have a further decline. So in the whole year, the average coal consumption rate will be lower than the number of the first three quarters. [Foreign language] About your questions about the full coverage of capacity payment in Gansu, I can explain by the following reason. First, the supply and demand factors calculation should consider the cross-region power transmission. If we consider the power transmission, the demand and supply was around the same level, and it will reach balance. Second, the supply and demand ratio is calculated when the utilization was the highest. Mostly that will occur in the winter when wind and solar capacity generation was relatively low. If we consider above factors, we can see the supply demand ratio will be around one. [Foreign language] Please let me answer your question about the cost control. First, in terms of the accounting standards, the company used the actual occurring principle. So the cost occurs in accordance with our operation. [Foreign language] Second, the company has continuously taken measures to control our cost, especially from operations. Side, so if you see the unit cost for our power sales, it has a continuous improvement. [Foreign language] About the pace of our cost, because in the first quarter there might be more maintenance happen, the labor cost will be higher than the first three quarters. We will consider that, but this is only a reference for you. The actual situation will be based on our actual maintenance. [Foreign language] Could you provide the cost consumption rate for our coal sector? [Foreign language] The coal consumption rate for our coal sector in the third quarter alone was 311.16 g per kilowatt-hour. The coal consumption rate in the first nine months was 301.78 g per kilowatt-hour. [Foreign language] [Foreign language] [Foreign language] The company's coal consumption rate in the first nine months decreased by 1.55 g per kilowatt-hour year-on-year. [Foreign language] The next question comes from Jiang Tao of GF Securities. [Foreign language] I have three questions. First, in the first nine months for the company, we can see we achieve great performance both in our market management as well as in our result. Could you talk about the company's market management target in the future? Second, the CSRC have held some conference to stabilize the tariff, stabilize the coal cost, and promote the anti-involution. Could you talk about the differences between different provinces? Third, could you talk about the performance contribution from long-term contract side and spot market side, and could you give us some numbers on that? [Foreign language] [Foreign language] About the question of market management, the company attached great importance to our shares management, and in the beginning of the year, the company have released our regulation on that issue, and the company also have researched the plans for the following steps. [Foreign language] However, the market value management core or basis is the value creation. In the first three quarters this year, the company have tackled difficulties and achieved a sound result. We think that our performance can represent our effort in the market value management. [Foreign language] The company also research into the instrument in the capital market, and the company will use methods such as dividend payout and the innovative way of finance in appropriate time to help with our market value. The company, all those measures taken is aiming to increase our competitiveness in the market and help with the high-quality development. With all these measures, the company wishes to increase the returns to our investors. [Foreign language] In the next step, the company will reinforce our management in capital market. The company will strengthen our information exposure and our investor relation management to enhance the operation and share the company's result with all our investors. [Foreign language] About the question of anti-involution, in 2025, in September, the CSRC held a conference in order to stabilize the tariffs, stabilize the coal price, and push forward the anti-involution strategy. All these measures are used to guard against vicious competition and to form stable expectations for our tariffs. [Foreign language] For the measures taken, first from the fuel market, the fuel market will begin to rebound and stabilize in 2026, and the improvement in the primary energy price will be a strong support to the tariff. [Foreign language] In terms of the coal power generation, the capacity tariff will be a very important adjustment. It will help the coal power generators to recover some of our fixed cost. It will improve our profitability. [Foreign language] In terms of the renewables, the government have announced, in September 24th, the self-contribution to the low carbon transition. So in twenty, by the end of 2025, the renewable consumption will be around 35% of total power consumption. The wind and solar capacity will be around 360 GW. In the future, the renewable capacity will maintain a high speed growth, and government will strengthen the guidance in renewable investment. [Foreign language] From the policy side, document 136 will lay the foundation to the high-quality development of renewable and it will provide some reasonable profit for renewable projects. That will help to balance and keep a stable market situation for the development. [Foreign language] About your question, about your search question, firstly let me give you some numbers. In the first three quarters, the market-based power sales in the first three quarters for the company was 281.73 billion kilowatt-hour. For coal, the market-based tariff, market-based power sold was 257.173 billion kilowatt-hour, gas 3.632 billion kilowatt-hour, wind 13.148 billion kilowatt-hour, solar 7.092 billion kilowatt-hour. [Foreign language] In the mid to long-term power purchase agreement, the coal power sales was 22.228 billion kilowatt-hours, gas 3.36 billion kilowatt-hours, wind 12.95 billion kilowatt-hours, solar 5.2 billion kilowatt-hours, and the sales in the spot market for coal, it was 30.27 billion kilowatt-hours. For gas, it was 0.027 billion kilowatt-hours. For wind, it was 26 million kilowatt-hours. For solar, it was 194 million kilowatt-hours. [Foreign language] About the mark, spot market participation in 2025, so in the first three quarters, the company's thermal spot market power sales have increased. The power generator, the power sales was very stable. For renewable, the power sales via the spot market have increased, although the tariff of renewable have decreased, because of the increased generation, the profit have increased. [Foreign language] In the future, there will be a more close linkage between the spot market tariff and mid to long-term market tariff. The tariff will be decided by the supply and demand situation, the fuel cost, and the demand of systematic regulation. All three factors might impact the market, and the price will be more market-oriented. Thank you. [Foreign language] [Foreign language] [Foreign language] The last question comes from Sun Weixian of Orient Securities. [Foreign language] I have three questions. First, could you tell us the renewable capacity outlook in the fourth quarter? Second, could you give us the coal tariff and the coal profit situation in the third quarter in province of Shandong and Gansu? Third, about the company's asset impairment. In the third quarter, the asset impairment has decreased comparing to the same period last year. Could you talk about the reason? Is that because the company hasn't run the test, or because it is not necessary for the company to have asset impairment? [Foreign language] First, let me give you the situation: the company's power installation in the first three quarters. The company had put about 10.1 GW into construction, including 7.1 GW of renewable and 2.3 GW of thermal power. In the first three quarters, the company had put 10.29 GW of units into operation, including 6.83 GW of renewable and 3.64 GW of thermal. The company's projects that under construction amounted to 18.87 GW, including 7 GW of thermal and 11 GW of renewable. In the fourth quarter, there will be around 200 MW in Qingyuan and 480 MW in Yantai being put into operation. [Foreign language] In the first three quarters, that is the above numbers were in the first three quarters, and I will give you the numbers of whole year's expectation. The company aimed to add 14.19 GW of units, including 4.192 GW of new gas, and 4.2 GW of wind and 5.8 GW of solar. [Foreign language] About the situation in Shandong and Gansu, the average tariff for coal in Shandong was CNY 490 per megawatt-hour, increasing by CNY 6.9 per megawatt-hour. The tariff in Gansu was CNY 398 per megawatt-hour, increasing by CNY 20.8 per megawatt-hour. We can see in those provinces, the long-term contracts have a very low signing, and that leads to a high tariff in spot market. We can see this also from the profit. The coal sector's profit in Gansu was CNY 331 million, and coal profit in Shandong was CNY 2.029 billion. However, the wind profit in Shandong was CNY 342 million, and wind profit in Gansu was CNY 67 million. [Foreign language] From the change in the profit, we can see the coal profit in Shandong has increased by CNY 1.79 billion. The coal profit in Gansu has increased by CNY 583 million. The wind profit in Shandong has decreased by CNY 144 million. The wind profit in Gansu has decreased by CNY 177 million. [Foreign language] Let me answer your question about the asset impairment. First, the company hasn't had any insufficiency in our asset impairment. [Foreign language] First, let me introduce the principle in our asset impairment. We are trying to provide our investors with a very authentic and realistic asset situation, so the asset impairment will be in accordance with our operating and asset standards. [Foreign language] So in order to realize this target, the company has serious principles, measures, and procedures taken in the asset impairment. [Foreign language] The company will have the principle of fairness and consistency and run the evaluation test with the help of professional evaluators. [Foreign language] In the first three quarters, the company's asset impairment was CNY 621 million, including Shang'an CNY 137 million, Luohuang CNY 254 million, Jinbei CNY 110 million, and all this asset impairment was taken in accordance with the asset impairment signs. [Foreign language] In the future, the company will stick to our principles and have consistency in our measures and principles taken in asset impairment. We also aim to enhance the transparency of the release. We will release all these impairment signs in our semi-annual and annual reports. [Foreign language] Thank you. [Foreign language]. Thank you so much for all the questions and participation today. [Foreign language] Finally, Mr. Wang would like to give us a summary. [Foreign language] Thank you for your participation and continued support. Here we come to the end of today's conference call. Please contact our IR department if you have any further questions. Thank you. [Foreign language] Thanks again for your attendance of the conference call regarding the third quarter results announcement of 2025. We are looking forward to meeting with all of you in our next results announcement. Thank you.