Chinese power producer Guizhou Qianyuan Power Co., Ltd. (SZSE: 002039) gained net profit of CNY 120.46 million, skyrocketing 766 percent from a year earlier.
Operating revenue surged 135 percent year on year to CNY 722.75 million, and earnings per share (EPS) stood at CNY 0.86, citing its 2008 financial report. The Shenzhen-listed company plans to deliver a pre-tax dividend of CNY 1.5 in cash for every ten shareholders.

The company, based in the southwestern province of Guizhou, witnessed a sharp rise in power generation and sent about 3.14 billion kilowatt-hours to power grids last year, hiking 111 percent from a year earlier. The good performance is ascribed mostly to the sufficient water supply to its hydropower stations and the increased generation sets.

The abnormal water flow of the Sancha River in November 2008 was near 300 percent of the average of the past years. Therefore, the company's hydropower stations in Puding and Yinzidu all gained a rapid production growth in the month and the following period, as the water reservoirs of the two stations had received above-average inflow by November 30, 2008.

The Guangzhao Power Station based in Guizhou put four generation sets into operation in 2008, adding CNY 336.46 million to sales income and reaping CNY 82 million to net profit.

Moreover, its income was driven up by the power markdown. The pricing regulators of Guizhou had raised the price of electricity that hydropower stations send to power grids by CNY 0.013 from October 15, 2007 and further lifted it by CNY 0.006 from July 1, 2008.

So far, Qianyuan Power has installed a total generation capacity of 1.559 million kilowatts, and is building and planning hydropower plants with installed capacity of over 1.5 million.

By the 2008-end, it had had total assets of CNY 11.611 billion, with a 334.39 percent surge year on year, and net assets per share had risen 20.56 percent to CNY 4.3314, earlier reports said.

The company says that it needs to make use of the capital market to support its growth. On November 14, 2008, however, the shareholders' meeting said no to a private placement plan.

Qianyuan Power predicts that it will gain electricity sales income of CNY 1.136 billion in 2009, and net profit of CNY 20.04 million with a drop of more than 80 percent.

The China Electricity Council (CEC) previously forecast that the country's power demand would be on the continuous decline in the first half of 2009, and that the total electricity consumption growth for this year was estimated to be around 5 percent.