senior executives of the company
zhu yongpeng is addressing the meeting.
qiao baoping is attending the meeting
xie changjun is introducing business performance
questions from reporters
questions from analyzers
on aug. 24, china longyuan power group cooperation ltd. held its 2011 interim results announcement in hong kong. zhu yongpeng, general manager of china guodian corporation and chairman of china longyuan power group corporation limited, attended and addressed the meeting. qiao baoping, secretary of party leadership group of china guodian corporation and chairman of the supervisory board of china longyuan power group corporation limited also participated in the meeting. xie changjun, assistant general manager of china guodian corporation, general manager and executive director of china longyuan power group corporation limited was present at the meeting and introduced the company’s business performance in the first half of 2011. people as follows from china longyuan power also were present at the meeting: directors, independent directors, supervisors, deputy general managers, chief accountant and secretary of the board of directors. besides 22 media in hong kong including ta kung pao, economic journal, wen wei po and economic times as well as more than 100 investment analysis agencies including morgan stanley, ubs, merrill lynch and citibank attended this meeting.
in his address, zhu yongpeng pointed out that china longyuan power responded actively the complicated operation trends both at home and abroad as well as various significant challenges in the first half. continuing to strengthen delicacy management, it further consolidated and expanded the development achievements in wind power industry so that it had enhanced its profit level and achieved satisfactory results. he said that the 12th five-year plan is the golden period to develop china’s new energy industry. china guodian corporation stuck more firmly to its strategic thought that was to lead enterprise transformation by greatly developing new energy and would give more support to accelerate the development of china longyuan power.
led by the board of directors and closely concentrating on this year’s strategic deployment and work objectives, china longyuan power promoted various work solidly in the first half. therefore, the company had clearly sped up its development and generally continued to maintain good trend in production and operation. first, profit level had been enhanced steadily. in the first half, the income of the company was rmb 7.602 billion yuan with a half-on-half increase of 21.7%. the income before tax was rmb 1.993 billion yuan. among it net profit attributable to equity shareholders was rmb 1.412 billion yuan with an increase of 66.5%. the profit of each share had reached rmb 0.1892 yuan. wind power business was the main growth point and its profit level took leading position in the china’s wind power industry. the income of wind power business was rmb 3.206 billion yuan with an increase of 37.6%. its business profit was rmb 2.351 yuan with an increase of 52.7%. in the first half, the company had 22 newly registered cdm projects with a consolidated installed capacity of 1381mw. the income reached 0.381 billion yuan with a half-on-half increase of 135.2%. the growth speed was far beyond those of other power enterprises. second, generation level had been upgrade continuously. in the first half, the accumulated generation of the company was 129.87 billion mw with an increase of 23.79%. among it, the generation of wind power was 70.69 billion mw with an increase of 44.45%. the generation of other renewable energies had increased by 146.05% and that of coal power had increased by 4.86%. third, project constructions had been promoted steadily. in the first half, the company had 7 wind power projects and 1 pv power project that were launched into production with the consolidated installed capacity of 355.5mw. by june 30, 2011, the holding installed capacity of the company had reached 8829mw. among it, that of wind power was 6894mw, ranking first in china and asia while third in the world. the company also focused on building excellent project. in the first half, three projects of the company as follows had been awarded with “2011 excellent project prize of china electricity”: expansion (phase 2) of jiangsu rudong chartered wind power project, hebei weichang zhuzixia wind power project and phase 2 of mangniuhai wind power project of xing’anmeng league in inner mongolia. fourth, national strategic deployment was further perfected. in the first half, based on the principle of optimizing deployment and dispersed development, the company’s newly increased reserves of wind power in heilongjiang, jilin, inner mongolia, hebei, shandong, anhui, ningxia, shanxi, henan, hunan, hubei and jiangxi was 6000mw. by june 30, 2011, the accumulated reserves of wind power project had. in the first half, the company continued to maintain the steady development of wind power projects in traditional development areas and made further progress in the wind power projects of inner land. as a result, the national strategic deployment tended to be more perfect. fifth, capital guarantee was more powerful. through centralized control of capital and diversified financing system, the company tried to reduce capital cost. in the first half, the company successfully issued enterprise bond of 3 billion yuan with fixed interest rate. meanwhile, the company had introduced capital outside of business banks through various ways including trust loans and entrusted loans of institutions in order to effectively guarantee the capital demands to develop the enterprise. sixth, other renewable energies developed harmoniously. china longyuan power further optimized the structure of new energy industry and realized the harmonious development of various types of new energies. apart from wind power, the company actively developed pv power projects and continued to intensify the operation of generation business of other new energies, such as biomass power, geothermal power and tidal power. 20mw phase 1 of ge’ermu pv project in qinghai had been put into production completely in the first half. by the end of june, the company’s reserves of solar energy projects had reached 2255mw so that it had laid a solid foundation for the massive development of pv project in the future.
according to the latest prediction of imf, the economic increase rate of the world would surpass 4% this year and it continued to keep the basic trend of moderate recovery. at present and for some time to come, the driving force of china’s economic growth would remain strong. according to the 12th five-year plan for renewable energies (consultation draft), the installation objectives of wind power and solar power had been increased to 1 billion mw and 0.1 billion mw. the 12th five-year plan was the golden period to develop new energies, and the company would firmly and greatly develop new energies.
in the recovery of world economy, many countries had opened their investment market. at present, china was at the stage of accelerating outbound investment cooperation and the country also encouraged domestic enterprises to “walk outside”. by now, the company had set up the preparation offices of oversea projects in countries including south africa, the usa, canada and hungary. it also signed the acquisition agreement of 100mw wind power project in canada. taking this opportunity, it tried to make greater breakthrough in oversea projects.
in order to ensure the completion of the whole year’s operation objective, the company would focused on the following works in the second half: first, it is to intensify capital management to respond the change of monetary policy and guarantee this year’s monetary demand; second, it is to fortify production management and promote the increase of generation; third, it is to strengthen operation management and try to increase income and profit; fourth, it is to emphasize preliminary works and ensure sustained development; fifth, it is to intensify project management and ensure production objective to be launched; sixth, it is to carry out “walk outside” strategy and steadily promote the development of oversea business; finally, it is to pay more attention to reform and innovation and improve operation efficiency.