HUADIAN POWER (01071) continues to carry out the "improve quality, increase efficiency, and achieve higher returns" action.

HUADIAN POWER (01071) issued an announcement. In order to thoroughly implement the spirit of the 19th National Congress of the Communist Party of China and the Central Economic Work Conference, and continuously implement the relevant deployment of the State-owned Assets Supervision and Administration Commission of the State Council to improve the quality of listed companies controlled by central enterprises, actively respond to the initiative of the Shanghai Stock Exchange to carry out the special action of "Improving Quality, Increasing Efficiency, and Returning Value" for listed companies in the Shanghai market, HUADIAN POWER Co., Ltd. ("the Company") will further deepen the improvement of quality and efficiency as a focal point, focusing on promoting the high-quality development of the Company, guiding the Company to return to reasonable value, and continuously carrying out the action of "Improving Quality, Increasing Efficiency, and Returning Value". 1. Enhancing operational quality and strengthening market value management The Company adheres to the principles of seeking progress while maintaining stability, advancing stability through progress, and setting up breakthroughs after achievements. The Company is solidly carrying out the annual activity of improving the quality of listed companies, coordinating the promotion of transformation and development, quality improvement and efficiency enhancement, and integrated management of internal control compliance risks, focusing on enhancing the Company's capability for high-quality development and innovative coordinated service guarantee capability, and promoting the deep and solid development of the Company. The Company attaches great importance to market value management. After the release of market value management-related opinions and guidelines by the State-owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission last year, the Company carefully studied and implemented the relevant regulatory spirits, and timely formulated the Company's market value management system. In 2025, the Company will continue to strengthen the control of operating elements, consolidate and improve quality and efficiency. Actively adapt to the new requirements of the power market, participate in spot market transactions scientifically, efficiently coordinate long-term, spot, and ancillary service market transactions, further enhance overall market competitiveness. Strengthen the research on energy industry policies and market trends, conduct market transactions with quantity and price coordination. Strengthen the research on coal procurement strategies under the new situation, expand coal procurement channels, optimize the coal procurement structure, effectively coordinate coal procurement and inventory control, scientifically blend and optimize blending and burning, promote structural price reduction. Take multiple measures to reduce capital costs, optimize debt structure, and reduce financial expenses. The Company will actively research and explore market value management solutions that meet the Company's development requirements, and based on actual needs, conduct further research and promote more in-depth market value management measures to reflect the Company's intrinsic value more reasonably. 2. Improving corporate governance and strengthening regulated operations The Company has always attached importance to corporate governance, continuously promoted management innovation, strictly followed the requirements of relevant laws and regulations such as the Company Law, Securities Law, as well as the relevant provisions of domestic and foreign securities regulatory agencies, improved the Company's governance structure, improved the internal control system, and strived to achieve the coordinated development of the Company's growth and shareholder interests. Since its listing, the Company has attached great importance to corporate legal construction, especially modern corporate system construction. The Company's shareholders' general meeting, board of directors, and supervisory board operate in accordance with the law and form a set of internal management and control system that effectively balances and operates effectively, effectively safeguarding shareholder interests and guaranteeing the exercise of rights by directors and supervisors. The Company deepens and improves the modern corporate system with Chinese characteristics, improves and perfects the board of directors system, ensures the standardized operation of the board of directors and supervisory board, plays the outstanding strategic leadership ability and professional, diverse decision-making advantages of the board and supervisors, leading the high-quality development of the Company. The Company has been effective in compliance and internal control management, effectively safeguarding the Company's operation in compliance with the law. The improvement of corporate governance is a long-term systematic project that requires continuous improvement and enhancement. In 2025, the Company will continue to actively update and improve its internal systems in a timely manner according to relevant regulations, continuously track and evaluate the implementation of board of directors' decisions, strengthen the management foundation, continually strengthen enterprise management, enhance scientific decision-making and internal control through improving legal governance, strengthening internal management, and advancing informatization, continually enhancing the level of regulated operations and legal governance of the Company, promoting the Company's stable and healthy development. The Company will complete the revision of the Company's Articles of Association and supporting systems in accordance with the Reform Plan of the State-Owned Enterprise Supervisory Board of the State-owned Assets Supervision and Administration Commission and the guidelines of the China Securities Regulatory Commission for the Articles of Association of listed companies, further improving the governance and system rules of listed companies, and enhancing the level of regulated operations and corporate transparency of the Company. 3. Increasing dividend distribution and enhancing investor returns The Company actively responds to the country's policies to strengthen the construction of the capital market and enhance investor returns. In 2024, the Company completed multiple dividend payments, with the dividend amount for 2024 accounting for 45.72% of the distributable net profit attributable to the parent, an increase of 2.07 percentage points compared to 2023. The 10th meeting of the 10th session of the Board of Directors of the Company proposed to distribute a dividend of RMB 0.08 per share (including tax) for the first half of 2024, based on a total share capital of 10,227,561,133 shares, totaling approximately RMB 818,204.89 thousand (including tax). The 19th meeting of the 10th Board of Directors proposed to distribute a dividend of RMB 0.21 per share (including tax) for the full year of 2024, including the dividend of RMB 0.08 per share (including tax) already distributed in the first half of 2024. The proposed final dividend payment is RMB 0.13 per share (including tax), based on a total share capital of 10,227,561,133 shares, totaling approximately RMB 1,329,582.95 thousand (including tax). In 2025, the Company will continue to adhere to an active and prudent dividend policy, comprehensively considering various factors such as the Company's strategic planning, operational efficiency, capital expenditure, capital cost, shareholder preferences, etc., implement the new "Nine Articles" policies on dividends, and strive to provide continuous returns to shareholders.