(Yicai Global) Aug. 25 -- China National Nuclear Power Co., Ltd (CNNP) [SH:601985] reported net profit of USD375 million (CNY2.5 billion) -- up 0.99 annual percentage points -- in its performance evaluation for the first half of this year. Noteworthy is that its net growth is not apparent due to a sharp rise in its sale and financing costs, although its operating income has seen an annual rise of 9.6 percentage points.
The Beijing-headquartered company said that its operating revenues in the first half of the year hit CNY 14,131 million, an increase of 9.60 percentage points over the same time last year, courtesy of three new generator sets in service. However, the new generators also boosted sales costs which increased by 50.51 annual percentage points.
Its financial costs in the first half of the year reached as high as CNY 2.2 billion, up 44.07 percentage points per year, due to increased exchange losses as the yuan continued to slide against the greenback.
In addition, the group set up a branch in the UK in the first half of the year, the outcome of a Sino-UK agreement on nuclear investment, research and development cooperation. Moreover, in accordance with English laws and regulations, international companies must establish a local branch if they wish to invest in and undertake projects within the country, as well as satisfying requirements for personnel, taxation, investment and financing, and project management. The firm has sunk USD24 million (GBP18 million) into the subsidiary.
CNNP did not detail the influence of the British government's announced suspension of the partially Chinese-funded Hinckley Point C nuclear power station on CNNP's performance and operations.