Business News Agency April 30. The main performance indicators of the state-owned and state-controlled enterprises in the first quarter of 2010 showed that power generation companies suffered losses due to rising coal prices and significant cost increase from January to February. Although from January to March once again turned losses into profits, the recent fluctuations in the profits of power generation companies are still mainly affected by coal prices and the profound contradictions between industries. According to the current electricity price and coal price level, many thermal power plants are close to the break-even point.

Since the beginning of this year, the southwestern region has experienced continuous drought, and some hydropower generating units have been shut down. The amount of hydropower generation in various regions is much lower than the historical period. To ensure power supply, thermal power must be fully powered. However, from the second half of last year to January this year, the price of coal rose from about 570 yuan per ton to about 700 yuan. Compared with the difference in ignition price, the major power groups fell in the first quarter. As of the end of February 2010, the pre-tax ROE and profit margin levels of the thermal power industry were only 5.4% and 3.2%, respectively, which fell compared to the previous period. There were 533 loss-making households with a loss of 6.89 billion yuan. In view of the lack of authoritative data in March, some media said that from January to March, the industry turned losses into profits, but we expect that as the inflation expectation gradually strengthens, the government will slam the device, and the adjustment of the electricity price will drag on again, making the first quarter of this year the thermal power industry. It is difficult to change the situation where the increase does not increase profits, and the possibility of a renewed loss in the power industry will increase.

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