Annual Report Review | After Turning Losses, Yunnan Energy Investment Holdings' Evolution in the Role of Power Grid Coordination

Viewpoint Network: A traditional power utility leader holding nearly 10 million kW of installed capacity has not stopped at the core of thermal power.

In 2025, Yu Energy Holdings disclosed its 2025 annual report. The data show that in 2025, Yu Energy Holdings achieved revenue of RMB 11.23 billion, down 7.61% year-on-year; net profit attributable to shareholders of listed companies was RMB 390 million, up 421.54% year-on-year.

What is worth noting is that at the beginning of the year, Yu Energy Holdings planned to enter the computing power track by taking a stake in Shitian Computing Power Technology Co., Ltd., and acquiring the controlling stake of Zhengzhou Heying Data Co., Ltd., thereby shifting its role in the power-computing synergy from a single “energy provider” to a “computing power infrastructure participant” through the acquisition.

In fact, the optimization of electricity costs for computing power operations is inseparable from the economic benefits of the computing power industry. Data from the China Academy of Information and Communications Technology shows that the growth rate of electricity consumption at computing power centers is far higher than the growth rate of electricity consumption across society, and the proportion of electricity used for computing power in total social electricity consumption continues to rise.

Turning losses into profits in a year

Yu Energy Holdings is the only energy-listed platform under Henan Province. Its business mainly covers three segments: power generation, coal, and other businesses.

During the reporting period, the company’s total installed capacity was 9.3967 million kW, slightly higher than 9.3679 million kW in the same period of the prior year; the installed capacity of newly commissioned units was 0.2879 million kW, down year-on-year; and the planned installed capacity of projects under construction was 2.8046 million kW.

In 2025, the company’s total electricity generation was 24.73 billion kWh, with grid-connected electricity or electricity sales of 23.162 billion kWh; the average grid-connected electricity price or electricity sales price was 474.73 million yuan per 100 million kWh (tax-inclusive). The average plant electricity consumption rate was 5.19%.

A close read of the financial statements makes it clear that Yu Energy Holdings’ core business base remains thermal power generation and heating supply. By the end of 2025, the company’s controlled thermal power total installed capacity was 7,660 MW.

In 2025, this segment generated revenue of RMB 10.34 billion. Due to large fluctuations in unit load in the spot market, the impact of a decline in the load factor led to a decrease in the overall electricity generation of thermal power; consequently, revenue from this segment decreased by 4.79% year-on-year.

Within the power segment, the wind and photovoltaic power generation segments recorded some growth. Among them, the wind power generation segment achieved revenue of RMB 247 million in 2025, up 4.69% year-on-year; photovoltaic power generation achieved revenue of RMB 114 million, up 2.68% year-on-year;

Although revenue from the foundation segment of thermal power generation and heating supply narrowed compared with 2024, it still accounted for 92.07% of the company’s total revenue, a higher share than in 2024. In addition, the gross margin increased to 14.35% during the reporting period, up 6.90% year-on-year.

And benefiting from the profit contribution brought by this segment, while the company’s total revenue contracted in 2025, net profit increased significantly to RMB 390 million, up 421.54% year-on-year, driving the overall turnaround from loss to profit compared with 2024.

At the same time, the traditional coal business is going “downhill.” During the period, coal sales and transportation business revenue was RMB 343 million, down sharply 53.32%% year-on-year; other segments generated revenue of RMB 186 million, down 12.96% year-on-year.

Based on these changes, Yu Energy Holdings also stated that it would adjust its asset structure.

The announcement mentioned that to accelerate the construction of a new power system, help advance the adjustment of the company’s installed capacity structure, and achieve its transformation and development goals, during the reporting period, the company and its wholly owned subsidiary Henan Yu Energy New Energy Co., Ltd. jointly contributed RMB 1.0 billion to establish Yu Energy (Puyang) Smart Energy Co., Ltd., with capital contribution proportions of 70% and 30%, respectively. The venture is mainly responsible for advancing the pre-development work of Yu Energy’s 2×1000MW coal power projects in Taitou and developing new energy resources.

As of the end of the reporting period, Yu Energy Holdings had operating new-energy installed capacity of 736.71MW, including wind power installed capacity of 366MW, biomass CHP installed capacity of 30MW, and photovoltaic power installed capacity of 340.71MW.

In addition, construction work on the Puyang Yu Energy multi-energy complementary (wind/solar/thermal/storage) integrated project in Fancounty (400MW wind project, Phase I at 200MW), the Linzhou 100MW wind project, the Henan Lushan pumped storage project of 1300MW, and the Linzhou Gongshang pumped storage project of 1200MW is advancing in an orderly manner.

Power-computing synergy

In its announcement, Yu Energy Holdings said it would strengthen the development of new energy, focus on core industries such as wind, solar, hydro, and storage, comprehensively increase efforts in developing new energy, and move into emerging industries such as virtual power plants.

In addition, it is gradually extending toward the load side and expanding toward upstream and downstream. It aims to connect the energy supply and consumption chain, forming an integrated development pattern of “source-grid-load-storage,” linking the upstream (coal) — midstream (coal-fired power, new energy, energy storage) — downstream (data centers and other electricity demand loads).

This layout has taken action in the new year. At the beginning of the year, Yu Energy Holdings announced it planned to take a stake in Shitian Computing Power Technology Co., Ltd., and, together with Henan Investment Group, would make Shitian Computing Power as the acquisition subject to acquire the controlling stake in Zhengzhou Heying Data Co., Ltd.

According to information, Zhengzhou Heying mainly engages in third-party hyperscale data center business. Its core assets include 36 subsidiary companies located in Zhangjiakou and Langfang in Hebei. The three major new green computing power clusters it is developing are situated in key regions for computing power demand in the Jing-Jin-Ji (Beijing-Tianjin-Hebei) area.

As of the end of February 2026, the IT capacity already delivered by Zhengzhou Heying was approximately 570MW, while the planned and already operating total capacity was as high as 1262MW. The listing rate rose steadily from 27% in 2024 to 79%, and it is expected to reach a guaranteed minimum listing rate cap of 93% by 2027.

Data centers have characteristics such as stable electricity demand loads, large demand scale, and long operating cycles, making them high-quality load users in the downstream of the power industry.

Yu Energy Holdings had said that this arrangement could connect the electricity chain of “generation-sales-use,” empower computing power operations with electricity保障 capability, effectively hedge risks related to electricity quantity and electricity price fluctuations, and achieve efficient synergy between its power main business and load-side development.

When AI large models become the next round of competitive tools and the computing power demand needed for training large models shows explosive growth, Yu Energy Holdings, with the “power-computing synergy” concept as its edge, remains highly favored by capital markets.

Within one month after disclosing the acquisition target, the stock price of Yu Energy Holdings surged to as high as RMB 17.88 at one point, with a gain of more than 100%, and its market capitalization jumped by over RMB 10 billion. As of March 23, 2026, the cumulative closing price gain of the company’s stock reached 144.82%.

For Yu Energy Holdings, its main business already has massive generation installed capacity and a stable, reliable power supply capability. By laying out computing power-related industries, it can effectively achieve “source-load interaction” and further leverage its own energy advantages.

The acquired data center assets are based on a “source-grid-load-storage” integrated site selection strategy. Relying on early-stage research and development of liquid cooling technology, they completed end-to-end verification and scaled deployment across all scenarios, from single equipment racks to the park level.

By extending its reach into the computing power sector, it has opened channels for its transition from traditional power to an AI infrastructure + green energy comprehensive service provider, and for building a “computing power + electricity” synergy model.

Even if the acquisition is not yet finalized, in the short term the acquisition target’s assets have not been incorporated into the company’s financial statements, but in the long run, the advantages of “power-computing synergy” may create some profit space.

Disclaimer: The contents and data in this article are compiled by Viewpoint based on publicly available information and do not constitute investment advice. Please verify before use.

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