When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

Due to investment income, the total market value of gd power development (600795.SH) exceeded 90 billion yuan in the first three quarters, with a year-on-year net profit growth of over 60%. However, during the same period, the non-GAAP net profit declined by more than 10% year-on-year, mainly due to a provision for impairment of over 0.8 billion yuan at Daxingchuan Power Station.

Specifically, gd power development achieved revenue of 133.862 billion yuan in the first three quarters, a 2.79% year-on-year decrease; net income attributable to shareholders was 9.191 billion yuan, a 63.41% year-on-year increase. However, looking at the performance by quarter, Q3 revenue was 48.034 billion yuan, with a net income of 2.475 billion yuan, showing a double-digit decrease year-on-year of 2.08% and 6.47% respectively.

In its announcement, gd power development stated that the growth in net profit in the first three quarters was mainly due to increased investment income from the transfer of controlling subsidiary, Inner Mongolia Energy Co., Ltd., by gd power construction investment, and increased investment income from joint ventures. According to a previous announcement by gd power development, the company plans to transfer 50% equity in gd power construction investment to Western Energy Company, a wholly-owned subsidiary of the controlling shareholder, China Energy Investment Corporation. The equity corresponding to this transaction was valued at 6.739 billion yuan.

Thanks to investment income, the company's net income attributable to shareholders in the first three quarters showed a significant year-on-year increase. However, the main reason for the non-GAAP net profit decreasing by 12.49% year-on-year was the provision for asset impairment at Daxingchuan Power Station.

Daxingchuan Power Station is a wholly-owned hydropower project of the company, located in the middle reaches of the Erdaosonghua River in Jilin Province, with a planned installed capacity of 0.0485 million kilowatts. During the construction period, the project was delayed due to dam breaches caused by floods in 2010 and 2013, followed by delays due to dam reconstruction, ecological protection, and resettlement of residents. As of October 2022, Daxingchuan Power Station was in a slow construction state.

In an announcement in August, gd power development stated that during the construction slowdown, the project's economic indicators continued to deteriorate. To minimize losses in a timely manner, the company engaged Walker (Beijing) International Asset Appraisal Co., Ltd., to conduct an impairment test on Daxingchuan Power Station. As of March 31, 2024, the cumulative investment value completed on the book value of Daxingchuan Power Station was 0.922 billion yuan, the recoverable amount was 79.8917 million yuan, and the impairment valuation was 0.842 billion yuan, reducing the company's current net income attributable to shareholders by 0.842 billion yuan.

GD Power Development's main business is thermal power generation, hydropower generation, and new energy generation, with thermal power generation accounting for over 80% of last year's revenue. According to the company's announcement, as of September 30, 2024, the company's consolidated statement caliber control installed capacity is 108.0633 million kilowatts, including: thermal power 71.969 million kilowatts, hydropower 14.9506 million kilowatts, wind power 9.5323 million kilowatts, and photovoltaic 11.6114 million kilowatts. In the first three quarters of 2024, the company's new energy control installed capacity increased by 3.3086 million kilowatts.

Tonight, GD Power Development also announced its plans to invest in the Anhui Huoshan Pumped Storage Power Station project. The announcement indicates that the project's planned installed capacity is 1.2 million kilowatts, invested, constructed, and operated by Shang'an Energy's wholly-owned subsidiary, GNE Huoshan Pumped Storage Co., Ltd. The total dynamic investment for the project is 7.556 billion yuan, with a 20% capital proportion and the rest to be resolved through bank loans. According to the equity ratio, Shang'an Energy will allocate 1.511 billion yuan in capital to GNE Huoshan Pumped Storage Co., Ltd. for the project's investment and construction.