Qianyuan Power posts 766% rise in earnings

Guizhou Qianyuan Power Co, a small-sized Chinese power producer, posted a 766 percent jump in net profit for 2008 thanks to the abundant water supply that fired its hydropower stations.

Its net profit rose to 120 million yuan last year, on sales of 722 million yuan, which was up 135 percent from 2007, the Shenzhen-listed company said in its earnings report.

Qianyuan's 2008 results stood in sharp contrast to those at other power companies, especially the coal-powered electricity producers, who took massive losses from the big increases in the prices of coal and other fuels in the first half of 2008. These companies were hit hard in the second half of the year when power demand weakened sharply amid the economic downturn.