China Longyuan Power Issues Its 2011 Results

公司高管团队 

Senior Executives of the Company

   

朱永芃致辞 

Zhu Yongpeng is delivering an speech

 

乔保平出席会议 

Qiao Baoping is attending the meeting

 

谢总介绍经营业绩  修后22222

Xie Changjun is introducing business performance

 

记者提问

Questions from Reporters

 

分析师提问

Questions from Analyzers

 

  On March 26, China Longyuan Power Group Corporation Limited convened its Results Announcement Conference 2011 in Hong Kong. Zhu Yongpeng, the President of China Guodian Corporation and the Chairman of Board of Directors of Longyuan Power, attended the meeting and delivered a speech to the meeting. Qiao Baoping, the secretary of China Guodian Corporation CPC Committee and the Chairman of Board of Supervisors of Longyuan Power also attended the meeting. Xie Changjun, the President Assistant of China Guodian Corporation, President and Executive-Director of Longyuan Power, reported Longyuan Power’s operation 2011 to the meeting. Other directors and supervisors of Longyuan Power, chiefs of some headquarters departments in China Guodian Corporation, the secretary of CPC Committee and vice president of Longyuan Power, chief accountant, the Board secretary of Longyuan Power, as well as nearly 20 Hong Kong-based media participated in the meeting. 

  Zhu Yongpeng pointed out that, Longyuan Power, in complex and volatile environmental landscape both domestically and internationally, further strengthened its core competence, steadily increased corporate profits and achieved good results in 2011 by optimizing its business portfolio and improving internal management system on a continual basis. He also added that, as a key year for the 12th Five-Year Plan of China, 2012 was a year essential to new energy industry in China, the Company has determined to furtherly speed up corporate governance transition, identify more growth potentials, reinforce internal management, and enhance corporate profitability, risk preventive capability, innovative strength and sustainable development capability, while the Company also would focus more on project management, production safety and external financing. 

  In 2011, Longyuan Power under the wise leadership of the board of directors closely focused on the job objective, sturdily pushed all jobs forward, and maintained the production and operation in a good state.

  Longyuan made the following excellent achievements through 2011:

  1.Stronger budge management and continuously-higher profitability. In 2011, Longyuan launched an overall management on budget, strengthened budget analysis, and reduced the cost of each item with scale development advantages. Full-year operating revenue was RMB 15.366 billion (deducting the income from franchise projects) with a growth of 20.4% year-on-year. Pretax income was RMB 3.609 billion and net attributable profit was RMB 2.638 billion with a growth of 31% year-on-year. Earning per share was RMB 0.3534. Wind power business income of RMB 6.212 billion through the full year (deducting the income from franchise project) continuing to be at the leading level among the national peers increased by 34.4% year-on-year. Profit on operation of RMB 4.309 billion increased by 36.2% year-on-year. Through the full year, 52 new CDM projects were registered, bringing a subtotal installed capacity of 3,198 megawatts (MW). Cumulatively, 107 CDM projects were registered, cumulating to an installed capacity of 6,052MW from which a full-year net income of RMB 727 million was obtained. That was a year-on-year growth of 85.5%, and therefore topped the industry. The company’s on-grid tariff of wind power and thermal power in 2011 were respectively RMB 578/MWh (VAT-included) and RMB 433/MWh (VAT-included). Both increase year-on-year. Longyuan has effectively controlled the procurement cost of wind turbines through central procurement and uniform tender. Thus, average cost of unit megawatt in wind power projects further decreased year-on-year.

  2.Stable work safety and steady improvement on power generation. Cumulative power generation of 2011 was 25.273 billion MWh that was an increase of 17.26% year-on-year, including 13.355 billion MWh that was an increase of 32.30% year-on-year from wind power, 59.26% on other renewable energy, and 3.49% on thermal power.

  3.Well-organized engineering construction and installed capacity at new high. In 2011, 38 wind power projects were increased in service with an installed capacity of 2,042MW. 3 solar photovoltaic (PV) projects created an installed capacity of 58MW. As of December 31, 2011, installed capacity held by Longyuan was 10,573MW of which 8,598MW of wind power capacity ranked No.1 in Asia and China. The company’s Jiangsu Rudong Franchise Phase-I 100.5MW Expansion Project, Hebei Weichang Zhuzixia 49.5MW Wind Power Project and Inner Mongolia Xing’an League Mangniuhai Phase-II 49.5MW Wind Power Project won the “2011 China’s Excellent Power Project Award”, of which the two projects in Jiangsu and Hebei also won silver awards of the National Excellent Project Award.

  4.Optimized debt structure and obviously safer financial security and capital control. Longyuan employed a capital central control and diverse raising system to reasonably adjust debt structure and safeguard financial security. In 2011, Longyuan issued RMB 3 billion of bonds, RMB 1 billion of short-term commercial paper, RMB 1 billion of non-public directional debt financing instruments, and RMB 2.4 billion of insurance bond plans, as well as renminbi bonds in Hong Kong, and obtained a total of RMB 2.3 billion of borrowings from oversea financial organizations and RMB 3.8 billion of trust loans and agency entrust loans. All above has effectively safeguarded the needs of capital for the company’s development. As of the end of 2011, the company’s long-term borrowings over one year were 65.7% and the debt structure was increasingly strong and stable.

  5.Faster business transformation and constantly optimized development layout. The company stepped forwards for transformation under the strategic guidance of “Leading the business transformation with big efforts to develop new energy” of 2011, explored for new fields of development, and further completed the strategic layout of wind power. Longyuan successfully bought a Canadian 100MW wind power project in 2011 and became China’s first state-owned power generation company investing in oversea new energy project. As the biggest offshore wind power station in China was built, Longyuan successfully tracked out and became the first one to have the core single-pile settlement technology for offshore wind power construction (intertidal zone), which has created important conditions for future mass development of offshore wind power. Longyuan positively drove the development of wind power in high elevation and low wind speed areas. Two high elevation wind power projects were commenced and put in service one after another. China’s first large-scale low wind speed power stations in Lai’an, Anhui created a cumulative installed capacity of 250MW by the end of the year, which had an active, leading and demonstrative influence on the development and utilization of wind power in low wind speed areas inland China. At the same time, on the basis of the principles of suitable response to local conditions and disperse development, Longyuan intensified the development of projects in inland areas with good wind resources and well-connected power grid, enlarged preliminary development in northeast China, Inner Mongolia, Hebei, etc. Through the full year, 2,603MW of wind power projects were approved. As of the end of 2011, wind power projects cumulated to a reserve capacity of 63GW. A much more reasonable development layout was formed.

  6.Pluralistic simultaneous and coordinative development of renewable energy. Longyuan was also active in the development of solar energy and biomass renewable energy. In 2011, three solar PV projects in Golmud, Qinghai (Phase I, Phase II) and Zhangye, Gansu created an installed capacity of 58MW. And, a 2,000MW capacity was reserved from solar power bases in Tibet, Qinghai, Gansu, Xinjiang, Inner Mongolia, etc. Longyuan was also active in biomass power generation, tidal power generation and thermal power generation projects. The company developed multiple renewable energies in a coordinative way.

  7.Bigger R&D input and richer technological achievements. Longyuan continued its bigger input in R&D by running 20 technology projects of which the newly-applied National 863 Program project – “Study on 100MW PV System Design Assembly Technology and Development of Major Equipment” was approved, and the two undergoing “Offshore (intertidal zone) Wind Power Construction Technology Study and Practice” and “Development of New Tidal Power Generator” projects won the second award of the 2011 China’s Power Technology Award.

  Nowadays, the world’s economy encounters hardships one after another. China’s new energy development is also facing lots of problems and uncertainties. However, generally during the Twelfth Five-Year Program, Chinese government shows firmer determination to speed up energy restructuring, energy conservation and emission reduction, so there are still very abundant opportunities for new energy development. In the meantime, some countries while the world’s economy is recovering have initiated economic stimulation plans and opened investment markets. Some developed countries strive to develop new energy and establish low-carbon economy, while the developing countries cannot wait exploring their power resources. New energy industry has been listed by a lot of countries as a new growth engine in the future. Today, China attaches high attention to international cooperation and encourages domestic enterprises to “go global”. This will surely help in a favorable way Longyuan’s investment in foreign market.

  In order to fulfill the full-year operation goal, Longyuan Power will focus on the followings in 2012: 1. Strengthen the awareness of responsibility to stabilize safe work. 2. Tap potentials and increase efficiency to maintain the company’s sustainable development. 3. Optimize the development layout to ensure the development quality. 4. Adhere to optimal design to ensure the project quality and cost objective. 5. Speed up the establishment of R&D platform and improve technological innovation. 6. Intensify training on introduced talents and offer strong talent safeguards. 7. Publicize and implement incorrupt business. Promote cultural and ideological progress. Advocate cohesive cultural concept.