Update | China Power International Development sounds sales warning

China Power International Development (CPI), a Hong Kong-listed mainland power-producer, said the price it charged customers might fall to reflect lower coal prices, as it posted a better-than-expected 156 per cent jump in interim profit.

"The group will closely monitor the relevant national policies which require tariff adjustments following changes in coal prices, actively strengthen operational risk management and strive for improving the annual results," CPI said in a statement.

Chaired by Li Xiaolin, the daughter of former premier Li Peng, the firm said its net profit in the first six months rose to 1.4 billion yuan (HK$1.8 billion) from 547.8 million yuan in the year-earlier period, thanks to lower coal costs and soaring hydropower output.

Its net profit exceeded the average 886 million yuan estimate of four analysts polled by Bloomberg.

Evan Li, head of utilities research at Standard Chartered, said lower-than-expected interest expenses and taxes led to the jump in earnings. He added that projecting second-half profit was not easy because it was not possible to forecast weather conditions and hydropower output.

The National Development and Reform Commission is likely to review on-grid tariffs at the end of the year, under a pricing mechanism announced in December. Whenever coal prices fluctuate more than 5 per cent within 12 months, coal-fired power prices will be "adjusted accordingly".