senior executives of the company
qiao baoping delivers a speech
xie changjun attends the meeting
li enyi introduces business performance
on 20 august, china longyuan power group corporation limited* conducted the 2013 interim results announcement in hong kong. qiao baoping, chairman and secretary of party leadership group of china guodian corporation and chairman of china longyuan attended the conference and delivered a speech. xie changjun, member of the party leadership group and vice president of china guodian corporation, and chairman of the supervisory board of china longyuan attended the conference. li enyi, president and executive director of china longyuan attended the conference and introduced the business results of the company in the first half of 2013. those who attended the conference also include president assistant of china guodian corporation, the members of the board of directors and members of the board of supervisors, chief accountant and secretary of the board of china longyuan. several hong kong media including south china morning post and hong kong economic journal, etc. and investment analysis agencies including morgan stanley and goldman sachs, etc. also attended the conference.
in his speech, qiao baoping indicated that as the leading enterprise in china’s new energy industry, china longyuan power always upholds the operation principle of “good faith, profession, standardization and efficiency”, constantly expands the enterprise scale and improves the development quality, and has made its due contribution to the development of the national energy saving and emission reduction and low-carbon economy. this year marks the 20th anniversary of china longyuan. mr. qiao stressed that standing at a new historical starting point, we will continue to center on economic benefit, take transformation of development mode and advancement of development quality as the main line and focus on strengthening operation management and deepening reform and innovation to strengthen and expand longyuan brand, speed up business transformation, constantly tap the potentials to improve the efficiency, fully launch the third undertaking and realize healthy and sustainable development of strengths.
in the first half of 2013, under the correct leadership of guodian group and the board of directors of the company, longyuan power tightly focused on objectives set for the year, made solid progress in various aspects, andmaintained a sound momentum in production and operation as a whole. the company obtained remarkable achievements in the following aspects: i. thoroughly exploring potential and maintaining stable profitability. in the first half of 2013, the company continued to strengthen the guiding role of budget and promoted cost reduction and efficiency enhancementacross the organization by reducing various cost and expenses through the advantage of scale development. operating revenue amounted to rmb9,654 million in the first half of the year, representing an increase of 14.5% year on year. profit before taxation amounted to rmb million, representing an increase of 15.2% year on year, of which, net profit attributable to shareholders amounted to rmb1,464 million. the company maintained an industry-leading position in terms of profitability of the wind power business. revenue from sales of electricity and others in the first half of the year amounted to rmb5,119 million, representing an increase of 31.6% year on year and operating profit amounted to rmb3,010 million, representing an increase of 7.6% year on year. in the first half of 2013, the company completed the introduction of low-cost capital such as the private issue of bonds, resulting in a continuous decline in its financing cost, the level of which outperformed its peers. the balance of interest-bearing liabilities amounted to rmb57,200 million by the end of june, while the net gearing ratio was 58.8%, representing a decrease of rmb1,500 million and 0.7 percentage point as compared to that in the beginning of the year, respectively. solvency indictors were optimising. in the first half of 2013, the company increased 25 newly registered cdm projects, accounted for 1,338 mw installed capacity in total. as at the end of june, the company had accumulated 215 registered cdm projects, with 11,216.3 mw installed capacity. in the first half of the year, the company achieved eur52.27 million of payment collection for cers sales through rapidly propelling cers verification and actively ensuring the performance of contracts. the average on-grid tariffs for wind power and coal power of the company for the first half of 2013 amounted to rmb582 per mwh (value-added tax inclusive) and rmb454 per mwh (value-added tax inclusive), respectively, which represented a year-on-year increase. the company further ensured the suitability of equipment tenders through refining the bidding process and further reduced the cost of procurement through scale advantages. ii. continuously optimising development layout and maintaining a sound development of the enterprise. in the first half of 2013, the company, amidst a complex and changing external environment, committed itself to the efficiency-foremost principle and devoted its greater efforts in increasing and preparing for projects with favourable resources and construction conditions in regions not subject to grid curtailment. it reserved wind power projects in areas where power grid connection planning had taken place in the three-north regions. the company also concentrated on jiangsu and fujian for the development of offshore wind power. in the meantime, to ensure the considerable project profitability, the company continuously increased its efforts in preliminary processes and prevented investment risks. in the first half 2013, 33 projects of the company were included in the third batch of the national wind power projects approval plan under the “twelfth five-year plan”. with the total installed capacity up to 2,270 mw, the company ranked the first among its peers. 8,874.3 mw of the company’s projects were included in the first three batches of the approved plans (including supplement), which accounted for 10.71% of the total approved plans. the proportion was the highest among similar enterprises. in the first half of the year, the company obtained approvals for 6 wind power projects with total installed capacity of 397.5 mw, all being located in regions not subject to grid curtailment. it also obtained approval for 1 solar power project with installed capacity of 20 mw. as at the end of june, the company had wind power projects of 3,596 mw capacity which were approved but not yet commenced. it had a total of 63.41 gw wind power project reserves. the company achieved a substantial breakthrough in overseas projects. after two years’ unremitted effort, the 100 mw wind power project of the company in ontario, canada obtained approval on environment assessment, approval on line construction and approval on project construction. the project is thus ready to commence construction officially. the company is coordinating between relevant suppliers and construction teams to make sure all preparations have fallen into place with the endeavour to start the project as soon as possible. iii. innovating production safety management and hitting the highest year-on-year power generation in record. the company had been continuously strengthening production safety management during the first half of 2013, with a firm grip on the implementation of the responsibility mechanism of production safety. areas which were up to our standard were expanded. the company continuously optimise the productivity of wind power equipments and strived to improve the meticulous management level. the average utilisation hours of wind power of the company in the first half of 2013 was 1,104 hours, representing an increase of 101 hours year on year. the company’s cumulative gross power generation was 16,684 million kwh, of which electricity generated from our wind power business accounted for 11,085 million kwh, representing an increase of 31.44% year on year. iv. strengthening entire process control of project construction and improving the speed and quality of infrastructure construction. in the first half of 2013, the company reinforced benchmarking management on its schedule, and established supervision groups to tackle the issues such as grid connection, forest and land expropriation as well as project approval on project sites. the company reinforced site management of its infrastructure construction and met conditions for project commencement in advance. the project constructions ware carried forward smoothly. as at the end of june, the consolidated installed capacity of the company was 12,815 mw, among which the consolidated installed capacity of the wind power business, the consolidated installed capacity of the coal power business and the consolidated installed capacity of other renewable power business were 10,661 mw, 1,875 mw and 279 mw, respectively. in the meantime, the group insisted to foster a sense of quality and reinforced meticulous management in the four phases of design, tendering, construction and inspection, thereby allowed its infrastructure management to be more regulated, standardised and systematic. the company reinforced the inspection and improvement on its design, compared and verified construction plans in detail, and thereby strictly controlled quality from the beginning. in the first half of the year, two of the company’s projects, the 30 mw+150 mw project of longyuan rudong offshore wind farm and the 20 mwp longyuan yangbajing phase ii grid-connected photovoltaic power generation stationwere honoured as “premium quality power construction in china” respectively. v. reinforcement of technical strength to heighten the contribution of technological progresses to the development of the company. as the company valued the effect of scale expansion and continued to maintain the leading position in wind power installed capacity, it attached even greater importance to reinforcing technological strengths to raise the contribution of science and technology to the development of the company. during the first half of the year, besides having carried out projects under the national 863 projects and 973 projectsas planned, the company had established 6 technological projects of guodian group and 8 independent projects of the company. some research projects meeting the needs of production had made certain progress, and have been underway of producing sample machines and conducting experiments on a larger scale. four national 863 projects such as operation and maintenance technology and equipment design for offshore wind farm passed interim review. in addition, four projects including research and application on new single pile basic and auxiliary installation equipment for offshore wind farm were awarded 1 first prize, 2 second prizes and 1 third prize in the evaluation of the technology advancement award of the guodian group in 2013. the company further improved the development of its production and operation control centre, thereby allowed less or no personnel to be stationed in some of its wind farms. findings from a research in modeling strategies of statistics for prediction of the power of wind power plants and development of an operational systemhave been applied on a large scale to all the wind farms of the company, thus effectively increased the accuracy for short-term and ultra short-term power prediction.
the development trend of energy transformation characterized by vigorously developing new energy is irreversible in terms of long-term energy safety and sustainable development in china, where the determination to develop new energy is firm and long-term. the 18th cpc national congress put ecological civilization construction in a prominent position, and put forward the idea of striving to build a beautiful china, which bring more development opportunities to new energy enterprises. all of these provides favorable conditions for business development of the company.
in the second half of 2013, the general business guidelines of the group are focusing on economic benefits, taking adjusting development roadmap and improving development quality as main principles, emphasizing on enhancing management and deepening reform and innovation, seeking the growing and powerful influence of the brand of longyuan and deliver a sound and sustainable development. to ensure the completion of operating objectives set for the year, the company will endeavour to achieve the following tasks in the second half of 2013: i. to expedite corporate transformation and comprehensively improve the development quality; ii. to strengthen infrastructure management and assure commencement of production; iii. to reinforce production safety and improve the operation of stock assets; iv. to insist on exploring potential and increasing efficiency for the comprehensive improvement of corporate profitability; v. to innovate systems and mechanisms so as to further enhance corporate competitiveness; and vi. to increase corporate soft power and absorb positive energy from harmony.