the “asset optimization and risk prevention” is an important mean to do the “five chapters” well, and also an important measure for the enterprise to work without any burden, improve value creation capacity, and realize the sustainable development. it is mainly to solve the problem of asset quality and risk prevention and control. since this year, under the firm leadership of party leadership group of the group company and great support of each department, china longyuan power accelerates cleaning low-efficient and invalid assets, perfects risk prevention and control system, ceaselessly optimizes inventory assets, prevents operating risks and lay first-class benefit foundation by the first-class asset quality.
improve operation of low-efficient assets to prevent from risks of loss
the low-efficient and invalid assets are the barriers for the production and operation of an enterprise, and severely restrict the healthy development of the company. the company takes the “double-improvement” as opportunity, and realizes the management improvement penetrating the entire process of operation by highly setting value creation ideas so as to create operating benefits and prevent from risks of loss to the largest degree.
facing the pressure of long-term loss of biomass assets, the company, through active report and communication with the group company, properly stipulated the disposal program of “return one, sell two and reserve two”, i.e. returning and transferring liaocheng biomass power plant, and withdrawing and impairment reserve for qianjin and tangyuan. at present, the company is arranging sales to resolve the adverse impact caused to capital market and accelerate the progress of capital optimization of the company. the company will strive to operate well the reserved two biomass power plants, innovate fuel collection and storage management mode, strengthen production and operation management and equipment management, actually improve operating status and try to gain achievements in the aspect of loss management.
at present, as impacted by both power limit and wind resource reduction, many wind power projects in northwest china, north china, and northeast china areas have had deficits. relying on own advantages, although the profitability of china longyuan power is obviously higher than the national average level, since this year, individual projects became loss. it is urgent to focus on loss management and reduction of deficit units. the company loses no time to treat the loss jointly, carries out special investigation to seek for reasons of loss around the profit objective, properly stipulate loss recovery and reduction implementation plan and further details the measures according to the principle of “one-enterprise, one-strategy”, actually increase income and reduce expenditure, reduce cost and increase benefits, and guarantee individual deficit unit can reduce loss and increase profits before the end of the year, and reduce the impact on overall benefits of the company to the largest degree through implementing monthly tracing and quarter analysis and strengthening follow-up supervision on loss management work. besides, the company strengthens capital operation, gradually transfer some share equity which has weak profitability or of no strategic significance and optimize asset structure and quality according to the disposal plan for low-efficient or invalid assets of the company in the next three years.
deepen the work to prevent from investment risks
not only speed and scale but also quality and benefit are important for the wind power to develop to what it is today. how to strictly control investment risk is the important link for the company to improve asset quality and benefits. the company reduces the investment risks to the minimum by strengthening the early work depth and normalizing investment decision-making procedures.
the company brings its professional advantages in aspects of early stage wind measurement and micro-sitting selection into full play, and further improves the accuracy of project economic evaluation; conducts feasibility research, risk appraisal, and evaluation by comparison solidly and in details, strictly implement various approved conditions, accurately settle the boundary conditions of the project, strengthen research on market conditions, investment environment and development method and transfer the emphasis of early work to optimization demonstration, investment condition implementation and risk control. the company studies the development characteristics of current wind power projects in depth, has stipulated and issued “key points of comprehensively improving development quality and benefits” and “guidance on strengthening depth and quality of wind farm feasibility research” successively, and has actually improved quality and accuracy of early work by strengthening wind measurement data calculation management, analyzing optimally matching unit type, scientifically measuring reduction coefficient and objectively evaluation grid send out and impact of limited electricity.
on the other hand, the company strengthens investment management, strictly controls the decision-making procedure, always insists on principles of “benefit precedence, within capacity, quality first and risk prevention and control”, strictly carries out the investment decision-making procedures, normalizes kick-off approval process, strengthens control over project construction fund use process, implements project accountability system, and scientifically controls investment steps. the company will never accept investment by power, relationship and relatives so as to reduce investment risks.
perfecting internal control system to prevent from financial risks
to prevent from financial risks, the most important thing is to tighten internal control. the company has put great efforts to promote the construction of financial information and internal control management system, has built the whole-process and systematic internal control system covering planned investment, project construction, production operation and financial management, and meanwhile has built the risk appraisal early warning mechanism and comprehensively used measures such as audit, tour inspection and efficiency supervision to normalize the operating behaviors of the enterprise and make sure various risks are controllable and under control. the company strengthens fund management, carefully settles and studies fund plan and loan replacement plan, strengthens cash flow management, deeply dig the fund intensive management and control benefits and systematically operates the fund management center to further improve fund use efficiency, reduce fund precipitation and make sure the financial expenses saved in the entire year is more than 250 million yuan.
accelerating the subsidy settlement is not only an important way to increase benefits but also the objective requirements to reduce loss and prevent from risks. the company closely follows and studies policies and situations, strengthens the communication and coordination with relevant departments specifically, and fully promotes the renewable energy electricity price subsidy fund application and settlement work. in the first half year, the results of electricity price subsidy fund recovery are favorable, and the recovery speed is obviously faster than the level in the same period in last year. the cash flow risks of the company are effectively prevented. on that basis, the company further strengthens marketing, and finishes the preparation of application for directory of the sixth batch of renewable energy source electricity price additional fund subsidy earlier. the operating projects which haven't gain electricity price will accelerate implementing ideal electricity price, guarantee the full-amount recovery of electricity price, and meanwhile strive to gain larger achievements in the aspect of non-recurring sources of income such as tax planning and financial fund.