GD Power Development, a Shanghai-listed unit of state-owned electricity giant China Guodian Group, said its first-quarter net profit would surge more than 50 per cent due to higher output and a change in its accounting policy.
GD Power, which had 7,100 megawatts of equity-calculated installed generation capacity at the end of last year - about 25 per cent of the amount of leading power provider Huaneng Power International - had posted a net profit of 175.88 million yuan in last year's first quarter.
Generation volume grew 8.37 per cent to 13.12 billion kilowatt-hours in the first quarter on the back of expansion of two plants, the company said earlier this month.
First-quarter profit growth was also due partly to the cancellation of a previous practice of amortising the difference between market and book value of long-term equity investments under new accounting standards, GD Power said.
Last week, the company announced a 7.63 per cent increase in profit for last year to 1.83 billion yuan following a 7.4 per cent rise in power output.
The company's share price yesterday closed 0.67 per cent firmer at 13.34 yuan. It has risen 116.21 per cent this year.
