(Yicai) Aug. 29 -- China General Nuclear Power and China National Nuclear Power, the country's two biggest atomic power companies, reported lower first-half profits as the rapid rollout of the nation’s electricity spot market and the entry of renewables into the market pushed down energy prices.

CGN's net profit tumbled 16 percent to CNY6 billion (USD838.7 million) in the six months ended June 30 from a year ago, the first decline since 2019, while revenue dipped 0.5 percent to CNY39.2 billion (USD5.5 billion). Profit at CNNP, a unit of China National Nuclear Corporation, fell 3.7 percent to CNY5.7 billion despite revenue rising 9.4 percent to CNY41 billion.

CGN's power generation increased 6.9 percent to 113.36 billion kilowatt-hours, while that of CNNP rose 12.1 percent to 93.55 billion kWh.

CGN's market-based power trading volume reached 56.1 percent of its total output in the first half, up from 52.4 percent a year earlier, contributing to its earnings decline as a result of lower prices. CNNP did not disclose any such figures, but Galaxy Securities estimates that profit at its new energy business plunged 66 percent to CNY344 million (USD48.1 million).

CGN and CNNP are implementing new strategies to address market volatility risks, with the former strengthening its marketing efforts and developing diverse customer bases to reduce exposure to spot market fluctuations, while the latter has set up three independent energy sales units to deepen its market presence and optimize trading strategies.

In addition, the pair are exploring multiple applications of nuclear energy to counter the economic impact of market reforms on relevant projects.

Editor: Martin Kadiev