Huaneng Power, the listed arm of China's biggest power generator, saw its first-half net profit plummet 96 percent, hit by a sharp rise in coal prices.
Huaneng Power International Inc said in a statement on the Hong Kong stock exchange on Tuesday its net profit in the first six months of 2017 fell to 243.9 million yuan ($36.31 million) from 6.18 billion yuan a year earlier, according to IFRS accounting standards.
Net profit of Huaneng Power, a unit of Huaneng Group, fell by 90 percent during the same period, based on Chinese accounting standards.
"Economic growth and increase in power demand will remain steady in the second half of the year, with newly increased installed capacity still large in scale and nationwide power supply capability sufficient on the whole," Huaneng said.
High coal prices have been dampening the profitability of power companies in China, the world's top power market.
Last month, China's coal prices rose to around 600 yuan a tonne, a threshold the state planner said would trigger the government to implement moves to cool the market.
China Resources Power Holdings Co Ltd , Guangxi Guiguan Electric Power Co Ltd, and Guangdong
Electric Power Development Co Ltd expect their first-half net profit to fall by at least 60 percent, they said in July.
($1 = 6.7170 Chinese yuan renminbi)
