Top Management Team of China Longyuan Power
On March 24, China Longyuan Power Group Corporation Limited held 2015 Annual Results Announcement in Hong Kong. Qiao Baoping, Chairman, Secretary of Leading Party Group of China Guodian Corporation and Chairman of China Longyuan Power attended the event and delivered a speech; Xie Changjun, member of Leading Party Group, Deputy General Manager of China Guodian Corporation, and Chairman of Board of Supervisors of China Longyuan Power attended the event; Li Enyi, the General Manager Assistant of China Guodian Corporation, General Manager and Executive Director of China Longyuan Power attended the event and introduced operation performance of the Company in 2015; persons in charge of relevant departments of China Guodian Corporation, as well as directors, supervisors, board secretary and chief accountant of China Longyuan Power attended the event. Total 14 mainstream financial and economic media including Economic Daily and Hong Kong Economic Journal, and over 180 international investors and analysts from the organizations of investment analysis such as Morgan Stanley, UBS, Credit Suisse AG, and Citi Bank participated in the event.
Qiao Baoping pointed out in his speech that in 2015, China Longyuan Power, facing severe and complex operating situations, oriented at “One Objective, Five Chapters and Five Guodian”, and sufficiently used national policies supporting new energy development to strengthen operation and management, deepen reform and innovation, and actively carry out activities of “normalized and standardized management improvement year”. China Guodian Power steadily promoted various aspects of work, and kept a favorable operation and development trend.
In 2015, China Guodian Power has made great achievements in the following aspects. Firstly, comprehensive in-depth exploration for potential and synergy, enterprise operation trend was favorable. China Guodian Power adopted multiple measures to dig profit potential, strictly control cost, comprehensively strengthen assets management, and ceaselessly improve profitability of the project; the enterprise acquired operating income of RMB 19.649 billion, with year-on-year growth of 7.8%; realized pre-tax profits of RMB 4.676 billion, with year-on-year growth of 15.3%; net profits attributed to shareholders of RMB 2.881 billion, with year-on-year growth of 12.8%; and earnings per share of RMB 0.3584. In 2015, facing complex and variable domestic and foreign currency markets, the enterprise flexibly used various financing tools such as company bond, ultra short-term financing, perpetual bond and overseas project bond to raise low-cost funds, and kept fund cost in leading level in the industry. Standard & Poor, the internationally well-known credit rating agency, adjusted the rating from “BBB+” up to “A-”, which increases the financing competitiveness of the enterprise in international fund market. Secondly, constant strengthening safety production, and wind power utilization hours kept leading in the industry. China Longyuan Power put great efforts in promoting systemized and normalized management of safety production, increasing safety inspection and rectification strength, deeply implementing anti-accident measures, and strictly controlling safety production capacity construction. The enterprise ceaselessly deepened target management and refined electricity quantity assessment; spared no efforts to cope with power restriction, and comprehensively implemented double-control of electricity and electricity quantity restriction; innovated marketing mode, and actively expanded external consumption channels; deeply promoted “fine maintenance” of equipment, and ceaselessly improved power generation performance of units; comprehensively carried out management by difference ratio, and realized single unit control of generating capacity. In 2015, the enterprise has accumulatively finished generating capacity of 35.731 billion KWH, in which wind power is 25.709 KWH. In the second half year, the generating capacity increased 11.35% year on year under the disadvantageous circumstances of greatly reduced wind resources and severe power restriction. The wind power utilization hours were 1888 hours, being 160 hours higher than average value in the industry and keeping the leading position. Thirdly, development quality kept improving, and development advantages kept the leading position. China Longyuan Power insisted on development principle with good quality and benefits, strengthened development led by strategies, prepared wind power development planning in the “13th five-year plan”, deeply analyzed policy environment and market environment, and formulated development strategies in different regions scientifically combining local layout and electricity restriction situations; ceaselessly deepened the early work, comprehensively improved development quality and sustainably optimized wind power development layout. Total 2628MW wind power projects were approved in 2015, and the approved projects are mainly centralized in the area without electricity restriction and offshore areas, in which the proportion of the area without electricity restriction reached 87%, and offshore projects were 900MW. As of the end of 2015, the wind projects approved by the enterprise but not put into production yet reached 7.2GW. These projects can guarantee current electricity price. And together with the wind power projects listed into national plan or under plan but not approved yet, the total capacity reached 9.6GW with the vast development space. The enterprise stably developed offshore wind power. The new generation self-elevating offshore wind power workboats joint developed by the enterprise and Shanghai Zhenhua Heavy Industries have been successfully applied to hoisting four sample units in Nanri Island, Fujian Province, keeping the leading advantage of offshore wind power technology. Fourthly, the management and control of capital construction process was strengthened and speed and quality of engineering construction was improved. Aiming at the national policy signal of wind power price reduction, China Longyuan Power intensively and rapidly seized the opportunity of some quality wind power projects, and increased wind power installed capacity of 2222MW in 2015. As of the end of 2015, the installed capacity of wind power reached 15765MW, and the enterprise became the largest wind power operator in the world. The enterprise innovated work ideas, and implemented kick-off conditions in advance; innovatively established standard management and control model for infrastructure process, and stringent management and control of engineering nodes; comprehensively coordinated equipment supply, and effectively guaranteed supply speed and quality; firmly set up the idea of “getting benefits from infrastructure”, strengthened engineering quality control, strictly controlling engineering cost and spared no efforts to build the quality engineering. Shanxi Shenchi Project has successively won the “Quality Power Project Award of China” and “China Quality Project Award” for the year 2015, and the speed and quality of engineering construction was improved comprehensively. Fifthly, the “going abroad” strategy was promoted steadily, and strategic planning for overseas business was confirmed. China Longyuan Power studied and formulated strategic planning for overseas business, confirmed the development idea of expanding from existing projects to periphery, seeking for strategic cooperation and investment opportunities based on “One Belt One Road” strategy, and seizing investment opportunity to seek for quality projects, optimized overseas strategies and further accelerated the step of “going abroad”. After the Canada-based wind power projects is put into operation successfully, the South Africa-based wind power project (244.5MW) of China Longyuan Power has started constructing with high standards since October 2015, and is expected to put into operation by the end of 2017. The project, by sufficiently referring to experiences of Canada-based project in fields of merger, bidding, early development and construction, has studied and confirmed various policies and boundary conditions in advance, innovatively adopted EPC to build two stages of project simultaneously, and implemented dynamic node control during whole process of infrastructure construction to build overseas quality project. Sixthly, China Longyuan Power highlighted the role of technology support, and kept leading in the industry in the aspect of technology innovation. The construction of wind power “big data” center was started comprehensively to seize the commanding height for future technology development. The project has successfully applied for China energy independent innovation project, and been selected as the only independent innovation subject in new energy industry in 2015 by National Energy Administration. The platform advantages of Guodian Wind Power Center were brought into full play. Offshore Wind Farm Operation and Maintenance Technology and Equipment Design, a national “863” project undertaken by China Longyuan Power has passed the check on its final project report. The offshore wind power operation and maintenance workboat designed makes up the technology blank in China. In 2015, the eight standards proposed by China Longyuan Power are successfully listed to new edition of wind power standard system in energy industry. In 2015, the enterprise has won 33 authorized patents, 20 software copyrights, two China Power Science and Technology Awards, and six Science and Technology Progress Awards of China Guodian Corporation. Seventhly, China Longyuan Power actively practiced green and low-carbon development, and harmoniously developed other renewable energies. The enterprise insisted on taking “contributing clean electricity, and building beautiful China” as its mission, actively responded to energy conservation and emission reduction policy of China, greatly carried out the development under volunteer emission reduction, and formulated the first batch, total 23 CCER projects development plan. The total installed capacity is 1240MW, and the expected annual emission reduction will be 1.7 million ton. At present, 10 projects have been recorded successfully yet. Except wind power, the enterprise harmoniously develops other renewable energy projects such as solar power. In 2015, the Photovoltaic Power Station of the enterprise carried out smart marketing of power, and economic operation of optimal equipment in tide and geothermal project. Longyuan Jiangsu and Longyuan Heilongjiang strengthened fuel management and equipment governance for biomass power plants, and further improved the operation status of other new energies.
Currently, as affected by slowdown of economic growth, the power development enters the new normal situation. The power market enters the “double-low” channel with low growth and low utilization hours. In the previous year, the electricity consumption growth in the entire society was 0.5%, creating the new lowest record in history. The competition in future electricity generation will be fiercer by prediction. In the meantime, the positive factors of national policy orientation in new energy industry will in favor of easing the serious electricity restriction situations. From the long run of energy safety and sustainable development, the trend of energy transformation development featuring in rapid development of new energy is irreversible. China makes firm and long-term resolution on new energy development, so the opportunity of wind power development is larger than challenge.
For further work, Qiao required that China Longyuan Power should, led by “innovation, coordination, green, openness and sharing” and with innovative management and development as main lead, closely follow national strategic deployment about energy, master promotion direction of new round power system reform, spare no efforts to operate, manage and develop China Longyuan Power well, put forth efforts in building innovative, management and benefit-oriented enterprise, and make greater contribution to coping with global climate change, ecological civilization and beautiful China construction. In order to guarantee the accomplishment of operation objective in 2016, China Longyuan Power should focus on the following work: the first is to improve inventory assets operation level based on “dual-improvement”; the second is to improve increment assets development quality centering at economic benefits; the third is to deepen system and mechanism reform and improve innovative ability of enterprise management; and the fourth is to strengthen ideological and political work of party building, and comprehensively create a harmonious atmosphere.