senior executives of the company
zhu yongpeng was delivering an speech
qiao baoping was attending the meeting
xie changjun was introducing business performance
on march 26, china longyuan power group corporation limited (china longyuan power) convened a conference to announce its business achievements in hong kong in 2012. zhu yongpeng, the president of china guodian corporation and chairman of the board of china longyuan power attended the conference and took the floor；qiao baoping, secretary of party committee of china guodian corporation and chairman of the supervisory board of china longyuan power attended the meeting; xie changjun, vice-president of china guodian corporation, and the president and executive director of china longyuan power attended the meeting and introduced the business performance of the china longyuan power in 2012; those attending the conference also include the members of the board of directors and members of the board of supervisors of china longyuan power, the president assistant of china guodian corporation, secretary of party committee and vice-president, chief accountant, secretary of the board of china longyuan power.
zhu yongpeng said in his speech that as the leading enterprise in china’s new energy industry, in the past year, china longyuan power worked hard to constantly accelerate the speed of development, expand the development scale, optimize the development layout and improve the development quality, achieving satisfactory results and making great contributions to the development of the new energy industry in this country. this year marks the 20th anniversary of china longyuan power. mr. zhu stressed that standing at a new historical starting point, this corporation would continue to carry forward the fine tradition of hard work, persist in innovation, adhere to the loyal and faithful business philosophy and efficient and rigorous working style, maintain the united and harmonious working environment, and follow the spirit of striving to be the best. meanwhile, focusing on the economic benefit, positive efforts would be made in speeding up business transformation, constantly tapping the potentials to improve the efficiency, launching the third round of campaign for starting a new business in an all round way and working hard to build the corporation into a world-class listed one in the new energy sector.
in 2012, under the proper leading of the group of guodian and board of directors of the company, longyuan across-the-board accomplished annual objectives and steadily implemented various work tasks and therefore the overall production and operation are well maintained:
1) the continuous enhancement of operational management attained the ideal level of profitability. in 2012, the company thoroughly implemented cost cutting by using the advantage of large scale development. for the year ended 31 december 2012, revenue amounted to rmb16,770 million (excluding service concession construction revenue), representing an increase of 6.2% over last year; profit before taxation amounted to rmb3,667 million; net profit attributable to shareholders of the company amounted to rmb2,593 million, basically maintain the same level with 2011; earnings per share amounted to rmb0.3466. the leading position of wind power business profitability in china maintained, its revenue from electricity sales and other revenue amounted to rmb7,981 million in 2012 (excluding service concession construction revenue), representing an increase of 23.6% over last year; operating profit of the wind power business of the group amounted to rmb5,109 million, representing an increase of 15.2% over last year. as of 31 december 2012, an aggregate of 190 cdm projects of the group were successfully registered with the cdm executive board, involving a cumulative installed capacity of 9,878 mw. in 2012, additional 83 cdm projects were successfully registered with total installed capacity of 3,826 mw. the group’s net income from sales of cers and vers for 2012 amounted to rmb742 million in total. in 2012, the average on-grid tariffs for wind power and coal power of the group amounted to rmb582 per mwh and rmb452 per mwh respectively, representing an increase over last year.
2) continuous optimisation in investment strategy and more reasonable layout of development. in 2012, the company heightened standard of review. the risk of investment was controlled strategically and systemically so as to secure investment return. during the reporting period, 50 projects of the group were listed under the second batch of plans for wind power projects to be approved (supplemented projects included) during the “twelfth five-year period” issued by the national energy administration, with aggregate installed capacity of 2,824.8 mw, of which projects in regions not subject to grid curtailment* accounted for 89.4%. the aggregate installed capacity of the group’s projects included in the first and second batch of projects to be approved under the plan of the prcm was 6,354.8 mw, which ranked the first among the development enterprises. approvals for preliminary work from the national energy administration were received for three projects with aggregate installed capacity of 790 mw, all of which are located in regions not subject to grid curtailment. the layout of project development was optimised and the foundation of the preliminary works was further reinforced. in 2012, the group obtained approvals for its wind power projects with 2,231.8 mw. the projects are located in yunnan, guizhou, fujian, jiangsu etc., of which 73.3% of the projects are in the regions not subject to grid curtailment. as at the end of 2012, wind power projects of the group which were approved but had not yet been commissioned exceeded 3,000 mw. the group’s accumulated pipeline capacity of wind power projects reached 63.10 gw, providing more flexibility in further screening of projects and optimising the group’s investment layout. in 2012, the group implemented the principal strategy of “small scale trial first, medium scale demonstration second, large scale development last” and proceeded with the development of offshore wind power in a proactive and steady manner. in 2012, the group’s offshore wind power projects with an additional installed capacity of 100 mw have commenced operation, and the accumulated operating installed capacity has reached 232 mw. as at the end of 2012, the group entered into development agreements for offshore wind power projects with an aggregated installed capacity of 5,900 mw, which covers areas such as jiangsu, fujian, liaoning, hebei and tianjin.
3) management on safe production continuously deepened and the leading position in the wind power generation industry maintained. the group fully tapped the space and efficiency for the potential improvement of its power plants through formulating a series of implementation measures and prudently implementing all these rules and measures, and endeavoured to ensure the safety, stability and efficiency in its power generation. the group generated a cumulative gross electricity output of 28,638 gwh, of which electricity generated from our wind power business amounted to 16,820 gwh, representing an increase of 25.95% over last year. the group maintained a high availability factor of its equipment, with an average availability factor of its wind power generating units at 98.43%.
4) construction objectives achieved with satisfactory quality and quantity, and wind power installed capacity exceeded 10 gw. in 2012, the group had 30 wind power projects and 4 photovoltaic power generation projects newly put into operation, with installed capacity of 1,598.9 mw and 59 mw, respectively. the group completed the acquisition of 7 wind power projects and 4 biomass power generation projects, with installed capacity of 346.5 mw and 120 mw, respectively. as at 31 december 2012, the consolidated installed capacity of the group was 12,698 mw, of which the consolidated installed capacity of our wind power business was 10,544 mw. the first top position in asia and china maintained. the group’s projects, namely the 300 mw large-scale self-developed pilot project in guazhou, gansu, the 150 mw longyuan wind farm project in shangyi, hebei, the 4×49.5 mw longyuan laian wind farm project in anhui and the phase ii 49.5 mw wind farm project of alashankou were honoured as premium quality power construction in china. among these projects, the project in guazhou, gansu and the longyuan laian project in anhui were granted national premium quality construction award, while the project in shangyi, hebei was granted the most prestigious award of project quality in the construction industry in china luban award, which was the first wind power project in wind power industry in the prc to have obtained this honour.
5) overall enhancement of financing capability and continued rise in creditstanding. in 2012, the company successfully completed the refinancing of h shares, the total capital raised up to usd$375 million, the placing attainted more than three times over-subscription.the company successfully completed a private issue of debt financinginstruments of rmb4,000 million and received a short-term loan of rmb3,500million from guodian group. the group also issued short-term debenturesof rmb1,000 million and hero asia investment limited, a subsidiary of thecompany, issued senior perpetual securities of usd400 million overseas. throughall of these, the group has established diversified financing channels bothdomestically and overseas with financing costs lower than the industry average.in 2012, the group entered into strategic financial cooperation agreements witha number of major domestic and foreign financial institutions with total amountexceeding rmb150,000 million, and successfully registered private debt financinginstruments of rmb10,000 million with the national association of financialmarket institutional investors, thereby significantly improved the subsequentfinancing capacity of the company. in november, the company was assigned abbb+ rating by standard and poor’s rating services and its credit standing iscontinuously rising.
6) coordinated development of other renewable energy sources.in addition to wind power development, the group has been actively expandingsolar and other renewable energy projects. during the reporting period, four solarphotovoltaic power generation stations with an installed capacity of 59 mw wereput into operation. as at 31 december 2012, the cumulative installed capacity ofthe group’s solar energy projects was 129 mw. five solar energy projects wereapproved during the year, with installed capacity of 57.4 mw, located in suchregions as qinghai, gansu, beijing and xinjiang. the project in turpan, xinjiangwas the first project among the 100 new locations mentioned in the notice of thenational energy administration on the reporting of pilot cities and industrialparks of new energy issued by the national energy administration in august 2012. as at31 december 2012, the pipeline installed capacity of the group’s solar energyprojects amounted to 2,000 mw, located in such regions as tibet, qinghai,gansu, xinjiang, inner mongolia and yunnan. in 2012, the group was the firstpower corporation to undertake the project of “sending electricity to households”for the households with no access to electricity in the tibet autonomousregion and put that into production, thereby solved the problem of the 160,000households having no access to electricity in the whole tibet. in 2013, the groupwill base its development on the large scale ground power station projects that areequipped with better conditions in those western regions with abundantresources,focus on“distributed photovoltaic power generation”projects and continue topush forward the power supply projects for those households with no access toelectricity in such regions as xinjiang and qinghai.
7) strengthened technological research and development and enhanced contribution by technological advance to the development of the company. in 2012, the group commenced 33 science and technology projects in total (comprising of 7 subsisting projects and 26 newly commenced projects), including one project under the national science and technology support program, six national 863 planned projects, two national 973 planned projects and one national oceanic renewable energy fund project. in 2012, one project under the national science and technology support program and two national 863 planned projects were successfully completed and passed the review by the prc. the national oceanic renewable energy fund project provided financial support for the research and development of new tidal generating units and renovation of existing power stations. the group worked out three basic industry standards for safety regulations, operation regulations and inspection and maintenance regulations of wind farms. those regulations were promulgated and implemented after they passed the review by the national energy administration. the company successfully convened the advanced seminar on critical technology of offshore wind power businesses, thereby facilitated the exchange of wind power technology between the prc and the other countries and improved the technological skills of the offshore wind power professionals of the group and the prc.
at present, although the deep impact of the international financial crisis is continuing to expand and the slowdown of china's domestic economy has become a long-term trend, under the stimulation of china’s macro-control policy, our macro-economy has recovered and the demand for electricity increased steadily. above all, the 18th national congress of the communist party of china has expressively stated that it will upgrade the construction of ecological civilization to an all-time high level; generating electricity by new energy complies with the strategic development direction and industrial policy of the national strategic and emerging industries and therefore enjoys great potential for growth. all of the above-stated points have created favorable conditions for the operation and development of the company.
in order to ensure the completion of the 2013 business objectives, longyuan power will undertake the planning and deployment on various tasks according to the mindset of “six insistences and six improvements” in order to ensure sound and sustainable development of the company: 1)to insist on strategic transformation and improve sustainability; 2)to insist on exploring potentials and increasing efficiency and improve corporate profitability; 3)to insist on professional management and improve corporate core competitiveness; 4)to insist on the stable operation and improve risk control capability of the enterprise; 5)to insist on science and technology innovation and improve the technical support; 6)to insist on harmony development and improve the corporate soft power.