Company abbreviation: CYPC

China Yangtze Power Co., Ltd.

2025 Annual Report

Important Notes

I.  The Board of Directors, directors, and senior executives of the Company guarantee that the present annual report is true, accurate, and complete in contents without the existence of false records, misleading statements, or major omissions, and undertake the individual and joint legal responsibilities therefore.

II.  Absent Directors

III.  ShineWing Certified Public Accountants LLP has provided the Company with a standard and unqualified auditor's report.

IV.  Liu Weiping, the person in charge of the Company, Zhang Chuanhong, person in charge of accounting work, and Zhang Na, leading member of the accounting body (accountant in charge) guarantee the truthfulness, accuracy and integrity of financial report in the annual report.

V.  Profit Distribution Plan or Capital Reserves Share Capitalization Plan for the reporting period, adopted by the Board of Directors via resolution.

Based on the total share capital of 24,468,217,716 shares as of the end of 2025, a cash dividend of RMB 10.00 per 10 shares (tax included, same below) will be distributed, totaling RMB 24,468,217,716.00. Among them, an interim cash dividend of RMB 2.10 per 10 shares was already distributed on February 12, 2026, with a total interim cash dividend of RMB 5,138,325,720.36. The proposed final cash dividend will be based on 24,468,217,716 shares, distributing RMB 7.90 per 10 shares, totaling RMB 19,329,891,995.64. No capital reserve will be converted into share capital for 2025. This plan will be submitted to the 2025 Annual General Meeting of Shareholders for review.

VI.  Forward-looking Risk Statement

Forward-looking statements such as the future plans and development strategies involved in this report do not constitute substantial commitments by the Company to investors. Investors are advised to pay attention to investment risks.

VII.  Whether there is any non-operating occupation of the Company's funds by the controlling shareholder or other related parties?

No

VIII.  Is there any external guarantee that violates the prescribed decision-making procedures?

No

IX.  Whether there exists a situation where a majority of the directors are unable to ensure the truthfulness, accuracy, and completeness of the annual report disclosed by the company.

No

X.  Major Risk Warning

The Company has already elaborated possible risks in this report. Please refer to the related contents in "VI. Discussion and Analysis by the Company on Future Development of the Company" of Section III Management Discussion and Analysis.

XI. Other

□ Applicable 锟斤拷 Inapplicable

Responsibility Statement

For the purposes of the United Kingdom's Financial Conduct Authority's Disclosure Guidance and Transparency Rule 4.1.12(3), each Director of the Company named in the section 锟斤拷Directors and senior management锟斤拷 of this report, to the best of his or her knowledge, confirms that

l the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole;

l and the annual report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

Contents

Section I Definitions 

Section II Company Profile and Major Financial Indexes 

Section III Management Discussion and Analysis 

Section IV Corporate Governance, Environment and Society 

Section V Important Matters  

Section VI Changes in Shares and Shareholders 

Section VII Relevant Information of Corporate Bonds 

Section VIII Financial Report 

Section I  Definitions

I.  Definitions

In the Report, unless otherwise indicated in meanings, the following words and expressions had implications as follows:

Section II  Company Profile and Major Financial Indexes

I. Company Information

II. Contact Information

III. Brief Introduction to Basic Information

IV. Information Disclosure and Place for Preparation

V. Stock Profile

VI. Other Related Information

VII. Principal Accounting Data and Financial Index in the Recent Three Years

(I) Principal Accounting Data

Unit: yuan  Currency: RMB

(II) Principal Financial Indexes

Description of major accounting data and financial indexes in past three years at the end of reporting period

锟斤拷 Applicable □ Inapplicable

During the reporting period, the Company experienced a business merger under the same control, and corresponding retrospective adjustments were made to the financial data during the comparative period.

VIII. Discrepancy of Accounting Data under the Accounting Standards at Home and Abroad

(I)  Discrepancy between the net profits and the net assets attributable to shareholders of the Listed Company in the Financial Reports disclosed simultaneously according to the International Accounting Standard and China Accounting Standard

□ Applicable 锟斤拷 Inapplicable

(II)  Discrepancy between the net profits and the net assets belonging to shareholders of the Listed Company in the Financial Reports disclosed simultaneously according to foreign accounting standards and China Accounting Standards

□ Applicable 锟斤拷 Inapplicable

(III)  Explanation on differences between foreign and domestic accounting standards:

□ Applicable 锟斤拷 Inapplicable

IX. 2025 Principal Financial Data in Quarters

Unit: yuan  Currency: RMB

Explanation of discrepancy between quarterly data and previously disclosed accounting period data

□ Applicable 锟斤拷 Inapplicable

X. Items of Non-recurring Profits and Losses and the Relevant Amounts

锟斤拷 Applicable □ Inapplicable

Unit: yuan  Currency: RMB

Where the Company identifies items not listed in the Information Disclosure and Presentation Rules for Companies Publicly Issuing Securities No. 1 - Non-recurring Profit and Loss as non-recurring profit and loss items and the amount is significant, or defines non-recurring profit and loss items listed therein as recurring profit and loss items, the reasons should be explained.

□ Applicable 锟斤拷 Inapplicable

Items Measured by Fair Value

锟斤拷 Applicable □ Inapplicable

Unit: yuan  Currency: RMB

XI. Other

锟斤拷 Applicable □ Inapplicable

Implementation Status of the Controlling Shareholder's Shareholding Increase Plan

On August 22, 2025, the Company received a notice from its controlling shareholder, CTG. Based on its confidence in the Company's future development, CTG plans to increase its shareholding in the Company via the secondary market within the next 12 months through methods such as centralized bidding and block trading. The total amount of the shareholding increase will not be less than RMB 4 billion nor more than RMB 8 billion. This shareholding increase does not have a fixed price range and will be carried out in accordance with market conditions. The source of funds will be CTG's own and self-raised funds. For details, please refer to the Company's announcement "CYPC Announcement on the Plan for Controlling Shareholder's Shareholding Increase" (Announcement No: 2025-041) published on the Shanghai Stock Exchange website on August 23, 2025.

As of December 31, 2025, CTG had increased its shareholding in the Company by a total of 161,581,335 shares through centralized bidding on the SSE system, with a total investment amount of RMB 4,498.53 million (excluding transaction fees).

Section III  Management Discussion and Analysis

I. Business during the Reporting Period

The Company's main business is large-scale hydropower operation, and it is the world's largest listed hydropower company. Its current total installed hydropower capacity is 71.795 million kilowatts, of which domestic hydropower installed capacity is 71.695 million kilowatts, accounting for approximately 16% of the country's hydropower installed capacity.

The Company manages and operates six hydropower stations, including Wudongde, Baihetan, Xiluodu, Xiangjiaba, Three Gorges and Gezhouba, with the spirit of "striving for excellence" and the attitude of "taking responsibility", continuously providing the society with high-quality, stable and reliable clean energy.

In 2025, the Company's main business continued to improve. The six river basin cascade power stations in the country generated 307.194 billion kWh of electricity, a year-on-year increase of 3.82%, playing an important role in comprehensive benefits, energy conservation and emission reduction, energy supply, and promoting economic and social development.

While consistently strengthening and enhancing its core hydropower business, the Company has also achieved outstanding results in capital operations, cost reduction, pumped storage business, and international business. The Company carried out stable external investments and achieved an investment income of RMB 4.959 billion throughout the year. The Company actively implemented cost reduction and efficiency improvement initiatives, with total annual financial expenses of RMB 9.371 billion, a YoY decrease of RMB 1.76 billion. Construction of pumped storage projects in locations such as Zhangye, Gansu, progressed steadily, and investment decisions were completed for two projects in Gongyi, Henan and Xunwu, Jiangxi, as well as equity acquisitions for four project companies in Qinglong, Hebei, and other places. Luz del Sur achieved a total profit of USD 298 million, an increase of 42.91% compared with the initial acquisition period, demonstrating significant results in enhancing the quality and efficiency of international business operations.

II. Industry Situation during the Reporting Period

The Company is mainly engaged in the hydropower generation business, which has the characteristics of being renewable, pollution-free, technologically mature, and having strong peak-shaving capabilities. Against the backdrop of the national carbon peak and carbon neutrality strategy, the clean energy advantages of hydropower are becoming increasingly prominent.

In terms of electricity consumption demand, the nationwide total electricity consumption reached 10.37 trillion kWh in 2025, a YoY increase of 5.0%, with an average annual growth rate of 6.6% during the 14th Five-Year Plan period. In 2025, China focused on energy development, consumption transformation, and market construction, continuously improving energy policies to provide a solid policy foundation for the green and low-carbon transition. In January, the National Development and Reform Commission and the National Energy Administration jointly issued the Action Plan for Optimization of Power System Flexibility (2025-2027), systematically advancing construction of flexibility, flexible resource dispatching mechanisms, and market participation pathways. Efforts are focused on enhancing power system flexibility and hydropower basin regulation efficiency to support the annual addition of over 200 million kW of new energy connected to the grid and absorbed.

In terms of power production and supply, the national installed power generation capacity reached 3.89 billion kW by the end of 2025, a YoY increase of 16.1%, with an average annual growth rate of 12.0% during the 14th Five-Year Plan period. The total installed renewable energy capacity reached 2.34 billion kW, up 24% YoY, accounting for about 60% of the country's total installed power generation capacity. Specifically, the national hydropower installed capacity reached 450 million kW, up 2.8% year-on-year, accounting for approximately 11.5% of the country's total. In 2025, the country's total renewable energy power generation reached 3.99 trillion kWh, an increase of 15% year-on-year, accounting for about 38.5% of total electricity consumption. The national hydropower generation was 1.46 trillion kWh, up 2.8% year-on-year, accounting for about 14.1% of total social electricity consumption.

In terms of the electricity market, the national unified power market has been preliminarily established, and the construction of a multi-level market system and various trading varieties is being steadily advanced. In 2025, the scale of national electricity market trading continues to grow, with the proportion of market-based transactions reaching new highs. Inter-regional and inter-provincial transmission and traded electricity volumes continue to increase. The medium- and long-term markets operate continuously and stably, mechanisms for electricity spot markets and ancillary service markets are further improved, and new market entities such as new-type energy storage, distributed energy, and virtual power plants are entering the market at a faster pace, providing important support for the green transformation of industrial structure and the green development of the economy and society.

III. Discussion and Analysis on Operations

In 2025, the Company focused on its core functions and fulfilled its strategic mission, successfully accomplishing all annual targets and tasks and achieving a comprehensive victory in the final year of the 14th Five-Year Plan.

(I) Focusing on responsibilities and mission; core functions fully demonstrated

Remarkable results were achieved in scientific dispatch. By carefully assessing inflow conditions and fully seeking dispatch support. The Company锟斤拷s hydropower stations generated a total of 307.194 billion kWh throughout the year, surpassing 300 billion kWh for the first time, with cumulative generation exceeding 4 trillion kWh. Water-saving power generation reached 14.01 billion kWh, and key indicators such as comprehensive water consumption rate, water utilization rate, and short-term forecasting accuracy all achieved historical bests, laying a solid foundation for the performance of the cascade hydropower stations. The Company calmly responded to the strongest Western China autumn rain since 1961, and smoothly managed 9 flood events exceeding 25,000 cubic meters per second at the Three Gorges Reservoir within 50 days, effectively ensuring the safety and tranquility of the Yangtze River.

Fruitful results were achieved in lean operation. Pilot demonstrations of status maintenance for the Three Gorges and Gezhouba stations were completed and promoted across the entire basin. The rate of high-quality overhauls and repairs for equipment and facilities remained at 100% for three consecutive years, with key operational indicators remaining at the international leading level. Successfully ensured energy supply during critical periods such as the "Two Sessions", the September 3 military parade, and the Fourth Plenary Session, receiving letters of appreciation from multiple provinces and cities. "Double zero" work safety goal was achieved.

Operation of high dams and large reservoirs remained stable. The Company carried out a three-year work safety fundamental improvement action and the "Thunderbolt" operation, dynamically eliminating major and typical accident hazards. The Company fully implemented the dual prevention mechanism and completed safety risk assessments of the dams at the Three Gorges, Baihetan, and Wudongde power stations. The Company comprehensively strengthened dam management, completing the first safety inspection of the Xiluodu Dam, and smoothly taking over the dam safety monitoring business for downstream Jinsha River hydropower stations.

(II) Maintaining strategic focus and orderly expanding development space

Incremental expansion progressed steadily. The Company formally submitted capacity adjustment application reports for Xiluodu and Xiangjiaba Hydropower Stations to Sichuan and Yunnan Provinces. The Company conducted research on key issues in southwest river basins and issued a work plan for obtaining incremental hydropower resources.

Pumped storage business developed steadily. The Company completed investment decisions for two projects in Gongyi, Henan and Xunwu, Jiangxi, as well as equity acquisitions for four project companies in Qinglong, Hebei and other places. The main works of the Youxian project in Hunan commenced, and the Company is entrusted with its operation and maintenance. Zhejiang Changlongshan Power Station achieved its "ZUO" for the first time throughout the year ,completing the Company's first pumped storage power plant safety production level 1 standard creation.

International business quality and efficiency improved. The Company smoothly completed the unit takeover, power generation and initial entrusted operation and management of the SanGaban III Hydropower Station in Peru. Luz del Sur received a Fitch BBB+ credit rating, surpassing Peru's national sovereign rating and making it one of the highest-rated companies in Peru. The Company acquired the Peru Red Coral project, adding 135,700 kW of wind power capacity and becoming Peru's largest wind power operator.

(III) Focusing on consolidation and strengthening the foundation, further improving operation and management quality and efficiency

Corporate governance capabilities continuously improved. The Board of Directors was further strengthened, corporate governance structure optimized, and the supervisory function of the Audit Committee under the Board implemented. The Company won multiple awards including the "2025 Best Board Practice Case" by the China Association for Public Companies (CAPCO).

Management efficiency continued to improve. The Company actively implemented cost reduction and efficiency improvement measures, resulting in a year-on-year decrease of RMB 1.76 billion in financial expenses for the year. The Company successfully reduced the number of overseas legal person hierarchy levels to five (excluding the impact of SPVs). Completed the disposal of 3 items under the "two nons" and "two assets", achieved progress in revitalizing and selling idle properties.

The capital operation was highly effective. Lean management of existing equity resulted in investment income of RMB 4.959 billion and received cash dividends of around RMB 2.6 billion. The Company's credit rating remains at the highest levels, with Fitch A and Moody's A1 international credit ratings.

(IV) Upholding technological self-sufficiency and self-improvement, with continued core capability enhancement

Outstanding achievements in scientific and technological innovation were achieved. The Company achieved orderly advancement in the construction of "China Three Gorges No. 1" hydropower satellite constellation; successful deployment of intelligent lifting equipment for giant turbine cover into maintenance practice, accelerated formation of new quality productive forces. All provincial-level scientific research platforms received excellent assessment results. A total of 28 achievements won provincial, ministerial and industry association science and technology awards.

Self-controllability has been steadily promoted. The Company achieved a demonstration of independent and controllable critical applications for the entire system of Three Gorges Power Station, completed the independent and controllable substitution for all units of Xiangjiaba Power Station and the Three Gorges power source plant's industrial control system, mastered the independent overhaul technology for generator outlet circuit breaker arc chambers, and completed independent and controllable research on a series of key equipment such as stator bars and DC demagnetization switches.

Industry leadership further consolidated. The Company led the completion of national "15th Five-Year" new energy (hydropower) standard system research, with 34 new national and industry standard projects led or mainly participated in throughout the year. Quality and efficiency of smart hydropower and digital twin construction improved, intelligent response speed of the industrial internet platform soared, and new achievements were made in digital-intelligent leadership.

(V) Deepening Party building to provide stronger leadership and support

Significant results achieved in study and education. The Company thoroughly studied and implemented the spirit of the 20th CPC National Congress and the plenary sessions of the 20th Central Committee, carefully implemented President Xi Jinping's important speeches and instructions, rigorously studied and implemented the spirit of the Eight-point Regulation, and conducted earnest issue identification and corrective actions in the Company and secondary Party organizations, achieving tangible results in integrated study, inspection, and improvement, and establishing regular and long-term mechanisms.

The foundation for Party building was further consolidated. The Company persistently advanced the "Lean Party Building" brand construction, deeply integrated Party building work with core business, and saw both the "Lean Party Building" brand and grassroots Party building classification guidance topics selected as innovative Party building cases by People's Daily Press.

Stronger and better organizational talent building was achieved. The Company optimized the market marketing organization structure, improved the production unit post management system, and added frontline operation positions. The Company vigorously advanced the cultivation and introduction of outstanding talents: 4 were newly selected for national-level talent plans, 1 was named National Model Worker, and 11 received provincial, ministerial or Group talent honors.

IV. Core Competitiveness Analysis in the Reporting Period

锟斤拷 Applicable □ Inapplicable

(I) Cascade combined dispatching capacity in the river basin

The Company has refined its practical experience in joint dispatching and the research results of "six-reservoir joint dispatching", carefully determined the water supply situation, continuously optimized the use of cascade reservoirs, and adopted multiple measures to optimize the power generation head and improve power generation efficiency. By fully utilizing the coordination mechanism of water and power dispatching and the flexible advantages of joint dispatching, the Company effectively promoted dynamic control of Three Gorges reservoir water levels during flood season and comprehensive use of downstream flood control capacity in the Jinsha River, with continuous optimization of dispatching rules, realizing resource utilization of floodwater and further improvement of flood control, energy storage and power generation capabilities.

In 2025, the Company effectively responded to the complex situation of "lean main flood season and concentrated autumn floods" in the Yangtze River Basin, comprehensively carried out key tasks such as drought relief and water replenishment, flood control and safe flood season management, and energy supply assurance, and successfully complete the annual water storage tasks. Comprehensive water consumption rate, water utilization rate, and short-term forecasting accuracy at cascade power stations all reached historical bests, with water-saving-induced additional power generation reaching 14.01 billion kWh, laying a solid foundation for the performance of cascade power stations.

(II) Operation and management capacity of large-sized hydropower stations

The Company scientifically organizes power production and manages power station operations in a streamlined and efficient manner. Currently, the Company operates and manages six cascade power stations on the mainstream of the Yangtze River, including 86 giant hydropower generating units of 700,000 kilowatts and above, accounting for nearly 70% of similar units in the world.

In 2025, the Company continued to uphold the power production management concept of "precise scheduling, lean operation, and meticulous maintenance", refined the operation of cascade power stations, successfully completed multiple rounds of supply guarantee tasks during critical time periods, and demonstrated the Company's operational capabilities and sense of responsibility with practical actions and management results. In 2025, the Company successfully completed the entrusted operation and management of the SanGaban III Hydropower Plant in Peru, shared the "Three Gorges Standard" and "CYPC Solution" and received high recognition from the local grid company.

(III) Overhaul and maintenance capacity of large-sized hydropower stations

The Company continued to strengthen its core capabilities in the inspection and maintenance of large hydropower stations by empowering itself with digital transformation, developing a digital inspection and maintenance management system, structurally organizing inspection and maintenance data, deepening the construction of production safety monitoring systems, improving the technical management system and maintenance quality management system that are suitable for inspection and maintenance of the entire river basin, promoting the intelligent management level of technical equipment. Robots have been deployed across virtually all inspection and maintenance scenarios, and the development of new quality productive forces is accelerating. Optimize the maintenance process, continuously carry out equipment status assessments, carry out scientific maintenance and diagnostic maintenance, dynamically optimize annual maintenance work, realize intelligent management and control of river basin maintenance, and further improve the maintenance capabilities and levels of equipment and facilities.

In 2025, the Company completed the maintenance tasks of all 110 units (including A/B overhaulof 9 large hydropower units) and other equipment and facilities safely, with high quality and on time, with the excellent acceptance rate of major overhauls remaining at 100% for three consecutive years.

(IV) Cross-regional power marketing capacity

The Company's six cascade hydropower stations on the main stream of the Yangtze River are all national key energy projects and backbone power sources for the "West-to-East Power Transmission" project, playing an important role in ensuring national energy security, promoting energy structure adjustment, helping to achieve energy conservation and emission reduction targets, and implementing national strategies such as the development of the Yangtze River Economic Belt. The Company's large hydropower is transmitted to many provinces and cities across the country for consumption via cross-regional, long-distance supporting lines. The consumption range is mainly in economically developed areas such as the Yangtze River Delta and the Pearl River Delta, providing stable energy support for China's economic development.

The Company has always adhered to the principle of stability first and steady progress, focused on its main responsibilities and core business, leveraged platform and resource advantages, and worked together at all levels to proactively integrate into the power market reform. The Company will continue to implement existing consumption arrangements, pricing mechanisms and other policy measures, adapt to the direction of power market development, combine with business layout, establish a marketing system for large hydropower that fits the national unified market, and promote the overall optimization of company benefits.

(V) Capacity of financing and asset acquisition and integration

The Company has excellent financial condition, stable and abundant cash flow, good reputation in the international and domestic capital markets, a domestic AAA credit rating and an international credit rating consistent with the country's sovereign rating, and strong investment, M&A and financing capabilities. In recent years, the Company has adhered to strategic guidance, focused on its main responsibilities and businesses, and carried out steady overseas investment in clean energy sector. The investment structure has become more reasonable, the investment quality has been further optimized, and it has the ability to contribute investment returns commensurate with the Company's scale.

Moving forward, the Company will further leverage its credit advantages, broaden financing channels, improve capital utilization efficiency, optimize the debt structure, and reduce financial costs. It will proactively serve major national strategies such as the Yangtze River Economic Belt, Yangtze River Protection, "carbon peak and carbon neutrality," seizing opportunities in clean energy transition, new energy development and power market reform, focusing on steady investment in core business, and carefully managing market value.

V. Main Operation Conditions in the Reporting Period

In 2025, the Company's total electricity generation was 309.735 billion kWh, representing an increase of 11.814 billion kWh, or 3.97%. In particular, the electricity generated by six cascade power stations in China reached 307.194 billion kWh, an increase of 11.29 billion kWh or 3.82% year on year. The total profit was RMB 41.74 billion, an increase of RMB 2.877 billion year-on-year, an increase of 7.40%. The net profit attributable to the parent company was RMB 34.503 billion, an increase of RMB 2.007 billion year-on-year, a growth of 6.17%. Earnings per share was RMB 1.4101, an increase of RMB 0.0820 year-on-year, a growth of 6.17%.

(I) Analysis of Main Business

1.  Analysis of changes in items relevant to statements of profit and cash flow

Unit: yuan  Currency: RMB

Detailed description of major changes in the Company's business type, profit composition, or source in the current period

□ Applicable 锟斤拷 Inapplicable

2.  Income and Cost Analysis

锟斤拷 Applicable □ Inapplicable

(1)  Performance of principal businesses by industry, by product, by region and by sales model

Unit: yuan  Currency: RMB

(2)  Analytical statement of production and sales

□ Applicable 锟斤拷 Inapplicable

(3)  Performance for major purchase contracts and major sales contracts

□ Applicable 锟斤拷 Inapplicable

(4)  Cost Analysis Table

Unit: yuan  Currency: RMB

(5)  Changes in the scope of consolidation due to changes in the shareholdings of major subsidiaries during the reporting period

□ Applicable 锟斤拷 Inapplicable

(6)  Major changes or adjustments in business, product, or service of the Company during the reporting period

□ Applicable 锟斤拷 Inapplicable

(7)  Information on main sales customers and main suppliers

Explanatory notes on client and supplier information listed on a consolidated basis under the same control standard

The Company combines and presents as the same client those clients controlled by the same controlling party (except where such control is solely due to the same state-owned asset management institution). The Company combines and presents as the same supplier those suppliers controlled by the same controlling party (except where such control is solely due to the same state-owned asset management institution).

A. Information on main sales customers and main suppliers

锟斤拷 Applicable □ Inapplicable

The Company's top five customers generated sales revenue of RMB 85,640.05 million, comprising 100% of total domestic annual sales. Related party sales from these customers totaled RMB 0, representing 0% of total domestic annual sales.

The Company's top five suppliers had procurement value of RMB 4,367,469,200, comprising 55.29% of total domestic annual purchases. Related party purchases from these suppliers totaled RMB 2,077,710,000, representing 26% of total domestic annual purchases.

B. During the Reporting Period, there were cases in which sales to a single customer exceed 50% of the total, there are new customers among the top five customers, or the Company is heavily dependent on a few customers.

锟斤拷 Applicable □ Inapplicable

Unit: ten thousand yuan Currency: RMB

During the Reporting Period, there were cases in which purchases to a single supplier exceed 50% of the total, there are new suppliers among the top five suppliers, or the Company is heavily dependent on a few suppliers.

□ Applicable 锟斤拷 Inapplicable

3.  Expenses

□ Applicable 锟斤拷 Inapplicable

4.  R&D Investment

(1) R&D Investment Table

锟斤拷 Applicable □ Inapplicable

Unit: ten thousand yuan Currency: RMB

(2) R&D personnel

锟斤拷 Applicable □ Inapplicable

(3) Description

□ Applicable 锟斤拷 Inapplicable

(4) Reasons for significant changes in the composition of R&D personnel and impact on the company's future development

□ Applicable 锟斤拷 Inapplicable

5.  Cash Flow

锟斤拷 Applicable □ Inapplicable

Net cash flow from investing activities was -RMB 18.215 billion, a decrease of RMB 7.244 billion year-on-year, mainly due to increased investment in construction projects during the reporting period.

(II) Explanation on material changes in profits resulted from non-principal activities

□ Applicable 锟斤拷 Inapplicable

(III) Analysis on assets and liabilities

锟斤拷 Applicable □ Inapplicable

1.  Information on assets and liabilities

Unit: yuan  Currency: RMB

Other explanations:

Closing balance of cash and cash equivalents was RMB 4.586 billion, a decrease of RMB 1.987 billion compared with the opening balance, mainly due to reasonable retention of period-end funds to improve capital utilization efficiency.

The closing balance of advances to suppliers was RMB 193 million, an increase of RMB 106 million from opening balance, mainly due to the increase in prepayments from contracts.

The closing balance of other current assets was RMB 576 million, an increase of RMB 320 million from the beginning of the period, mainly due to deductible taxes and fees.

Closing balance of other non-current financial assets was RMB 3.288 billion, an increase of RMB 1.407 billion compared with the opening balance, mainly due to unrealized gains on stocks held during the reporting period.

The closing balance of construction in progress was RMB 15.906 billion, an increase of RMB 6.352 billion from the beginning of the period, mainly due to the increase in investment in engineering construction projects.

Closing balance of other non-current assets was RMB 1.188 billion, an increase of RMB 307 million compared with the opening balance, mainly due to an increase in prepaid project payments and deductible taxes during the reporting period.

The closing balance of short-term borrowings was RMB 15.181 billion, a decrease of RMB 54.511 billion as compared with the opening balance, mainly caused by repayment of due liabilities.

Closing balance of non-current liabilities due within one year was RMB 70.204 billion, an increase of RMB 23.345 billion compared with the opening balance, mainly due to an increase in long-term borrowings due within one year.

The closing balance of bonds payable was RMB 29.781 billion, up RMB 8.04 billion, mainly due to the issuance of corporation bonds.

2.  Overseas assets

锟斤拷 Applicable □ Inapplicable

(1) Asset size

Overseas assets are 553.99 (unit: 100 million yuan, currency: RMB), accounting for 9.91% of total assets.

Notes to the high proportion of oversea assets

□ Applicable 锟斤拷 Inapplicable

3.  Restrictions on major assets by the end of the reporting period

□ Applicable 锟斤拷 Inapplicable

4.  Other descriptions

□ Applicable 锟斤拷 Inapplicable

(IV) Industry Operational Information Analysis

锟斤拷 Applicable  □ Inapplicable

Please refer to "Section III Management Discussion and Analysis - (II) Industry situation of the company during the reporting period."

Power industry operational information analysis

1.  Information on electricity quantity and price in the reporting period

锟斤拷 Applicable □ Inapplicable

2.  Information on electricity quantity, income, and cost in the reporting period

锟斤拷 Applicable □ Inapplicable

Unit: 100 million yuan  Currency: RMB

3.  Installed capacity analysis

锟斤拷 Applicable □ Inapplicable

As of the end of 2025, the Company's controllable hydropower installed capacity is 71.795 million kilowatts. Among them, domestic controllable hydropower installed capacity is 71.695 million kilowatts, and foreign controllable hydropower installed capacity is 100,000 kilowatts.

4.  Generating efficiency analysis

锟斤拷 Applicable □ Inapplicable

In 2025, the utilization hours of the Wudongde Power Station's power generation equipment were 3,624.53 hours, down 6.63% from the same period prior year; the plant's electricity consumption rate was 0.0828%, up 0.0031% from the same period of the prior year.

The utilization hours of the Baihetan Power Station's power generation equipment were 3,773.74 hours, up 0.07% from the same period prior year; the plant's electricity consumption rate was 0.1494%, down 0.0049% from the same period of the prior year.

The utilization hours of the Xiluodu Power Station's power generation equipment were 4,927.23 hours, down 1.51% from the same period of the prior year; the plant's electricity consumption rate was 0.1271%, down 0.0036% from the same period of the prior year.

The utilization hours of Xiangjiaba Power Station's power generation equipment were 5,753.75 hours, up 0.07% from the same period prior year; the plant's electricity consumption rate was 0.0638%, 0.0024% lower than the same period of the prior year.

The utilization hours of the Three Gorges Power Station's generating equipment were 4,303.48 hours, up 13.44% from the same period prior year; the plant's electricity consumption rate was 0.0692%, down 0.013% from the same period of the prior year.

The utilization hours of the Gezhouba Power Station's power generation equipment were 7,025.88 hours, up 11.87% from the same period prior year; the plant's electricity consumption rate was 0.1324%, down 0.0164% from the same period of prior year.

5.  Information on the capital expenditures

锟斤拷 Applicable □ Inapplicable

During the reporting period, the Company's fixed asset investment amounted to RMB 9.443 billion, of which RMB 75 million was spent on the purchase of fixed assets and RMB 9.368 billion was spent on infrastructure. The status of important projects under construction is as follows:

Unit: yuan  Currency: RMB

6.  Market-oriented transaction of electricity

锟斤拷 Applicable □ Inapplicable

7.  Electricity sales business operations

锟斤拷 Applicable □ Inapplicable

In order to comply with the reform of the national power system, in June 2016, the Company and Three Gorges Capital jointly established Three Gorges Electric Power as a platform to carry out market-oriented electricity sales business, focusing on the development of electricity retail customers in the Company's large hydropower and new energy consumption areas, and striving to cultivate and continuously improve the ability to sell electricity in a market-oriented environment. In 2025, Three Gorges Electric Power continued to leverage its own electricity retail license to carry out market-based electricity sales, focusing on developing electricity trading capabilities. The total market-based electricity sales volume exceeded 6 billion kWh, with coverage expanded to 9 provinces. The Company participated in China's first multi-channel cross-operational area green power transaction, with the transaction volume accounting for 6.18% of the total market traded volume. The adjustable capacity of the virtual power plant was expanded to nearly 30 MW, successfully participating in the first precise demand response load control in the Central China region.

8.  Other descriptions

□ Applicable 锟斤拷 Inapplicable

(V) Investment Analysis

Overall analysis on foreign equity investment

锟斤拷 Applicable □ Inapplicable

As of the end of 2025, the Company holds equity investments in 63 entities, including 2 ETF funds, with a cumulative initial investment balance of approximately RMB 58.2 billion. During the reporting period, new external equity investments totaled approximately RMB 1.037 billion.

1.  Major equity investment

□ Applicable 锟斤拷 Inapplicable

2.  Major non-equity investment

锟斤拷 Applicable  □ Inapplicable

The Gongyi Pumped Storage Power Station project in Henan completed an investment of approximately RMB 420 million in 2025 and a cumulative total investment of about RMB 710 million by the end of 2025, with funding coming from internal funds and bank loans.

The Xunwu Pumped Storage Power Station project in Jiangxi completed an investment of approximately RMB 260 million in 2025 and a cumulative total investment of about RMB 450 million by the end of 2025, with funding coming from internal funds and bank loans.

3.  Financial assets at fair value

锟斤拷 Applicable  □ Inapplicable

As of the end of December 31, 2025, the Company's closing balance of other equity instrument investments was RMB 4.524 billion; the closing balance of other non-current financial assets was RMB 3.288 billion.

Unit: ten thousand yuan Currency: RMB

Investment in securities

锟斤拷 Applicable □ Inapplicable

Unit: ten thousand yuan Currency: RMB

Explanation of securities investment situation

锟斤拷 Applicable □ Inapplicable

As of December 31, 2025, the Company invested in a total of 5 securities measured at fair value, including 3 stocks and 2 ETF funds, with a total closing book value of RMB 7.74 billion.

Investments in private equity funds

锟斤拷 Applicable □ Inapplicable

As of December 31, 2025, the Company had fully disposed of two private equity funds measured at fair value.

Investment in derivatives

□ Applicable 锟斤拷 Inapplicable

4.  Specific progress of material asset reorganization and integration during the reporting period

□ Applicable 锟斤拷 Inapplicable

(VI) Sales of Material Assets and Equity

锟斤拷 Applicable  □ Inapplicable

In 2025, the Company exited and disposed of a 14.87% stake in Purun Xingcai Fund and a 5.73% stake in Purun Xinneng Fund via public listing, recovering approximately RMB 220 million and contributing disposal income of about RMB 1.0359 million.

(VII) Analysis of Main Holding Companies and Joint-stock Companies

锟斤拷 Applicable □ Inapplicable

Status of major subsidiaries and joint-stock companies with a net profit impact of 10% or more on the Company

锟斤拷 Applicable □ Inapplicable

Analysis on main subsidiaries:

Unit: ten thousand yuan Currency: RMB

Analysis of major holding and joint-stock companies:

Unit: ten thousand yuan Currency: RMB

Acquisition and disposal of subsidiaries during the reporting period

锟斤拷 Applicable □ Inapplicable