senior executives of the company
qiao baoping delivers a speech
li enyi introduces business pe
on march 18, china longyuan power held the 2013 annual results announcement in hong kong. qiao baoping, chairman of the board and secretary of party leadership group of china guodian corporation, and chairman of the board of china longyuan power, attended the meeting and made a speech; xie changjun, vice president and member of party leadership group of the group company, and chairman of supervisory board of china longyuan power, attended the meeting; li enyi, president and executive director of china longyuan power, attended the meeting and presented the 2013 operating results of the company; president assistant and heads of the related department of the group company, and directors, supervisors, secretary of board of directors and chief accountant of china longyuan power attended the meeting. 23 media agencies such as economic daily and hong kong economic journal, and 258 investment analyst institutions including morgan stanley and goldman sachs attended the meeting.
mr. qiao pointed out that the whole company felt full of responsibilities in the presence of the investors’ expectations, the tremendous pressure of energy conservation and emission reduction as well as the urgent need for energy structure adjustment. developing new energies was the company’s duty-bound and divine mission, and we would continue to maintain the growth advantages in relation to the new energy industry. efforts should be devoted to the transformation and upgrading of industry, the mechanism reform of institution, the improvement of management capability, the optimization of asset structure as well as the construction of harmonious enterprises. mr. qiao said the company would continue to implement the strategy of “ushering in the business transformation by vigorously developing the new energy”, move heaven and earth to turn china longyuan power into a well-run, well-managed and well-developed company, and make every effort to establish a world-class new energy listed company, thus making new and even greater contribution for responding to the global climate change and building the “beautiful china”.
in 2013, the company obtained significant results in the following areas:
1)favourable corporate operating results were recorded due to the comprehensive leverage of potential and efficiency enhancement. in 2013, faced with the unfavourableconditions of cdm, the company further tapped into its potentialsand enhanced efficiencyby strengthening operations management. its operating revenue for the year amounted to rmb18,456 million, excluding service concession construction revenue, representing an increase of 10.1% year on year; adjusted ebitda profit rate was 57.2%, representing an increase of 6.8 percentage points year on year;its profit before taxation amounted to rmb3,529 million; net profit attributable to shareholder amounted to rmb2,049 million; average earning per share amounted to rmb0.255. in 2013, confronted with intense capital market at home and abroad andmounting cost of capital, the companyactively tapped domestic and international financing channels, broadened its cooperation with various large financial institutions and acquireda substantial amount of low-cost capital by issuing senor notes and private placement bonds etc. the cost of capital was at a leading position in the industry.through centralizing management platforms, the companyimproved its utilisationefficiency of capitaland the average daily reduction of loan balance amounted to over rmb400 million, which effectively cut down its cost of capital.. through centralisedmanagement and control of monetary capital and optimised adjustment on structure of debt, the company successfully controlled the increase in interest-bearing liabilities upon completion of the budget of capital expenditures for the whole year, and improved the operation level of capital of the company.
2) its development layout was continuouslyoptimized, which was achieved by accelerating the acquisitionof quality resources.in 2013, the company accelerated its pace in seizing quality resources. at the same time, it continued to maximise the depth of its preliminary work. it controlled its investment risks strictly to ensure investment income, thus optimised its wind power development continuously. the company had wind power projects approved with aggregate installed capacity of 2,760 mw, the majority of which were located in regions not subject to grid curtailment, a historical high in terms of the approved capacity andrepresenting 10% of the newly added approved capacity in the nation. hubei, jiangxi and shanghai, which hadnever got any approvals hadalso made a breakthrough.its wind power project in tibet, which is at the highest altitude in the world, has received approval and the phase 1 project has commenced operation and power generation. the company cooperated with branches (subsidiaries) of guodian group in 5 development projects with capacity of 250 mw. these projects were located in shandong and guizhou provinces which are situated in areas that are more profit-making and have great development potential. the company obtained approved offshore wind power of 250 mw. it hadobtained the permit for preliminary work for offshore wind power project of a capacity of 949 mw.among which, the offshore wind power project of 400 mw in nanri, putian, fujian is the largest integrated offshore wind power farm which has obtained the permit in china. the company has fully entered into a stage of scale development of offshore wind power. in 2013, 33 projects of the company were enlisted in the third batch of approval plans (including supplemented) under the 12th five-year plan of the national energy administrationwith the aggregate installed capacity of 2,270 mw. as at the moment,an aggregate capacity of 8,874 mw from the group was enlisted in the first three batches of approved plans accounting for 10.7% of the aggregate installed capacity enlisted, reliably placing the group in the top position among the enterprises of the same category. as at the moment, the wind power projects that have not put into production of the company but were included in the plans for wind power projects to be approvedby national energy administration reached 5.8 gw, and the approved wind power projects not put into production reached 4.7 gw, which laid a solid resource foundation for future development.
3) the highest power generation in record by increasing power generation. since 2013, the company, through consistently deepening benchmarking management, has innovated its assessment and incentive mechanism, strengthened equipment management, conducted equipment optimisation, and adopted various measures simultaneously to increase the generating capacity of the equipment. the company generated an annual cumulative wind power output of 21,929 million kwh, representing an increase of 30.38% year on year. the increase in the generating capacity exceeded that of the installed capacity by 17 percentage points. daily electricity output exceeded 100 million kwh twice, being the highest in record.the average utilisation hours of the wind power business was 2,111 hours, representing an increase of 126 hours from the corresponding period last year, which is at leading position in the industry.
4)the strict control of construction quality and cost by insisting on refined management. the company further reduced the procurement costs with its advantages in scale production. the company made a tighter and more stringent budget during construction and tendering process, increased the accuracy of the reference budget and stringently controlled the construction budget and design modification. despite the cost of forest and land expropriation and labour increased sharply, the average construction cost per kw of wind power project reduced by 2.7%. the group insisted to foster the awareness of quality and reinforced meticulous management in the four phases of designing, tendering, construction and inspection. meanwhile, the company compared construction plans in detail, thereby strictly controlled quality from the beginning. in 2013, two of the group’s projects, the longyuanrudong offshore wind farm (龍源如東海上風電場30 mw+150 mw工程) and the longyuanyangbajing phase ii grid-connected photovoltaic power generation station (龍源羊八井二期20mwp併網光伏電站工程) were honouredasouredasuredasnected photovoltaic power genera中國電力優質工程獎) respectively, and became the first offshore wind power and photovoltaic power generation project which won this award within guodian group.
5) a new breakthroughs in business overseas after accelerating its development overseas. in 2013, the company's overseas business has made material progress in two key development areas once again, as the wind power project in canada commenced construction and the wind power project in south africa was successfully bid. the company, working together with and local pr companies, consulting firms and the embassy of the prc in canada, has been communicating and coordinating with the departments of ontario, canada. after compiling 18 research reports covering the topics of archeology, heritage, hydrogeology, distribution of plants and animals and the preparation of a report ofmore than 3,000 pages to apply for the approval of renewable energy, approval for the renewable energy and approval on line construction from ontario hadbeen granted to dufferin wind power projects in canada, and ultimately on 8 july the approval on project construction was granted by ontario power authority. the construction started in august and the commercial operation is expected to commence in 2014. on 29 october, in the third round of bidding for the renewable energy project organised by the government of south africa, the company became the successful bidder for two wind power projects with a total installed capacity of 244.5 mw, and one of the projects successfully possesses the highest basic tariff. adhering to the principle of opting for countries and regions with a stable political environment,a high degree of market orientation, a sound legal system and the projects which would offer returns as required by the company, the company will primarily develop in south africa, north america, australia and central and eastern europe.
6)its continuous leading position in installed capacity by coordinating growth of different energy sources. in 2013, the companynewly added 28 wind power projects with capacity of 1286.7 mw which commenced production. it acquired 1 wind power project with capacity of 79.5 mw. as of the end of december 2013, the company’s consolidated installed capacity of wind power was 11,910 mw, continuously maintaining the firstin china and asia, as well as the second in the world.in addition to wind power, the company has been actively developing other renewable energy projects including the solar energy. the company continued to develop the centralised grid-connected photovoltaic power generation stations in areas with good resources and construction conditionswhich formulated economies of scales, and increased efforts in developing distributed photovoltaic power generation projects. its developed areas continued to increase. based on the existing experience, the company has accelerated the research work of the development and utilisation of other new energy sources such as geothermal energy, tidal energy, ocean energy and small-and-medium-scale hydropower. as unforeseeable changes had occurred to the environment of china’s biomass power generation market and the trend for future development was uncertain, the company would no longer include biomass power generation business as part of the major business of the company. as at the end of december 2013, the consolidated installed capacity of the company's other renewable energy was 287.6 mw, among which solar power generation projects accounted for 137.7 mw, biomass power generation projects 144 mw, tidal power generation projects 3.9 mw and geothermal power generation projects 2 mw.
7) the consolidation of foundation for the continuous development of the wind power business by enhancing technological strength.in 2013, the companyhas further enhanced its technological strength and completed the construction of the technical institute for wind power operation (風電運營技術研究所) and the research institute for marine geothermal energy (海洋能地熱研究所), which significantly improved the research conditions for the wind power and new energy technologies, and enhanced its research teams. the company won the team award for the innovative enterprise in the prc (中國創新企業團隊獎) by the china enterprise directors association and pushed ahead with a string of key scientific and technological projects such as research on key technology for offshore wind farm construction (《海上風電場建設關鍵技術研究》)as part of china’s 863 program. meanwhile, it converted its technical research results into practicalities and obtained 40 patents. the project of research and application on new single pile basic and auxiliary installation equipment for offshore wind farm (《海上風電新型單樁基礎及配套安裝設備研究與應用》) of longyuan was shortlisted as the first prize in the technology advancement award for the power in china. the project of technology for the observation and evaluation of the offshore wind resources and hydrological information (《海上風資源及水文資訊觀測與評價技術》) passed the review conducted by chinese society for electrical engineering. both of the technologies have reached internationally advanced levelsand laid a solid technical foundation for the company’s future development of offshore wind power. the company hadapplied for 9 technological projects of guodian group and 2 technological projects of the company, while executed 7 technological projects at the national level, 10 technological projects of guodian group and 15 technological projects of longyuan. the company initiated and organised the work of drafting the standards, among which 2 national standards passed preliminary review and 3 industry standards obtained approval upon submission. cnen energy (中能公司), design company (設計公司) and technology company (技術公司), pressed ahead with the new techniques for evaluation of wind resources, the guarantee for the safe operation of wind power, the monitor of turbines and the verification of power curve, which extended the application scope of the technologies. the successful commissioning of jiangsu offshore “longyuanzhenhua no. 2” and the construction vessel and “longyuanyunwei no. 1”, the operation support vessel, indicated that the company has owned a platform integrating the construction and operation support for the intertidal and offshore area and its equipment has reached the first-class standard in the world.
at present, the economic development in china is increasingly affected by resources and environment. especially, smoggy weather is frequent throughout the country in 2013, which causes strong reactions from all walks of life. faced with such a stern fact in resources and environment, the country should make a long-term and firm determination to adjust the energy structure and vigorously develop new energy sources, which is bound to create a broader development space for the new energy sector.
to ensure the completion of its operation targets in 2014, longyuan power will put key emphasis in the following work: - firstly, it will strengthen and refine the professional management to improve the operation level of stock assets. secondly, it will step up efforts to improve the quality of developing earned assets. thirdly, it will deepen the reform of system and mechanism and improve the innovation on the management. fourthly, it will strengthen the facilities in the party comprehensively and strengthen the capability of innovative corporate management.