on september 12, zhang guohou, member of party leadership group and vice president of china guodian corporation inspected longyuan canada renewables ltd. (hereinafter referred to as “longyuan canada company”), the first overseas new energy enterprise of china longyuan power. he extended sincere regards to the staff in canada, and encourage them to continuously advance overseas business. zhang yuan, vice president of china longyuan power accompanied the inspection.
zhang guohou pointed out that, as the first overseas new energy investment entity for state-owned power generation enterprises, longyuan canada company is a successful example that responds to china guodian corporation’s “going global” strategy. both china and canada have assigned management teams to overcome difficulties and forge ahead. longyuan canada company has made outstanding achievements and opened north american market historically. zhang made four requests concerning the future development of china longyuan power’s overseas business: first, fully adapt to the new investment environment and learn to respect local commercial culture. longyuan canada company should function as the bridgehead for overseas development, and return the rules, customs and concepts of north american market to china as feedback so as to promote the connection between domestic management mode and overseas market requirements. second, correctly understand the dialectical relationship between risk and revenue. the overseas investment must be bold to prudently bear certain risks, and should try to reduce risks and strive for high and reasonable revenues through knowledge and technology in the process. third, cultivate and protect overseas talents. overseas staff has made huge sacrifices in family and emotion, etc. that is beyond understanding of domestic staff, so longyuan canada company should build a stable high-quality overseas development team, which is the basis for future development of overseas business and also the intangible assets. fourth, attach great importance to financial analysis, financing management and financial management and control in project investment, and establish cooperative partnership with local consulting companies and financial institutions so as to build good market reputation and independent financing ability.
longyuan canada company acquired dufferin wind power project which is located in toronto, province of ontario in july 2011. this made china guodian corporation become the first state-owned enterprise that invested new energy project abroad. the project has an installed capacity of 99.1 mw with good wind resources. it is also entitled to 20 years of preferential electricity price subsidized by the government of ontario, which also promises good economic benefits. the project has successively passed a series of strict approval procedures such as environmental impact assessment through persistent efforts, and obtained permission to start construction on july 8. the operation is expected to begin in the first half of 2014.