2016 marked the first year of the 13th Five-year Plan period. Against the backdrop of an economic slowdown, staggering growth in power demand and adjustment of the energy structure, we rose to challenges, seized opportunities and achieved steady growth through reform, innovation and standard management. By the end of 2016, the Company had a total installed capacity of 7,791MW, a newly installed wind power capacity of 348MW, and a newly installed PV power capacity of 203MW, hitting record highs; it utilized 2,026 hours of wind power and 1,555 hours of PV power, which were higher than the national average.
Following the development concept of “creating value for shareholders”, we implemented the investment and operation principles of “ensuring steady growth, strengthening integration, fostering innovation and seeking development”, expanded financing channels, reinforced risk management, capitalized on the economy of scale, and registered a profit attributable to equity holders of RMB** million. While advancing business operations in Beijing, we actively expanded overseas and set up the first large-scale combined wind and solar power plant in Australia, laying a solid foundation for our “going global” initiative. In 2016, the Company was ranked 42th on the list of “Global Top 500 New Energy Enterprises” by China Energy News and China Institute of Energy Economics.
As Chairman Mao said in his poem, “The strong pass of the enemy is like a wall of iron. Yet with firm strides, we are conquering its summit.” 2017 is an important year for implementing the 13th five-year plan for the energy sector and advancing the supply-side structural reform. We will grasp the opportunities brought by the Belt and Road Initiative and the proposal in the 13th five-year plan for the energy sector to “take the development of clean and low-carbon energy as a key direction of adjusting energy structure”, improve energy pattern, coordinate domestic and international markets, make great strides while putting stable operation in the first place, strive to be a leading clean energy supplier at home and abroad, and create better returns on investment for shareholders.
General Manager’s Message
2016 was an exceptional year in the Company’s history. Despite the great challenges posed by the economic slowdown and sluggish growth of electricity demand, we made concerted efforts and reached new records in business performance under the strong leadership of the Board of Directors, taking our business to the next level. We exceeded our annual targets, and further improved our comprehensive strength and influence.
By the end of December 2016, the Company had an installed capacity of 7,791MW in total, of which the installed gas-fueled power, wind power, hydropower, and PV power capacities were 4,436MW, 2,263MW, 449MW and 643MW respectively. In 2016, 12 new projects were put into operation, with an installed capacity of 551MW; the installed capacity of projects approved was 838MW and that of projects under construction was 592MW. The Company registered an annual power output of 26.221 billion kilowatt-hours, an income of RMB14.64 billion, and pre-tax profit of RMB2.57 billion. The total assets reached RMB47.73 billion.
In 2016, we conscientiously implemented the concept of “innovative, coordinated, green, open and shared development”, upheld the work guidelines of strengthening management, improving layout, integrating industry and finance, and increasing efficiency through innovation, made active efforts to expand our market share in Beijing, China and abroad, and capitalized on our strengths to expand quality projects. While boosting our business in Beijing, we energetically sought development opportunities in other parts of China and aboard. With sound operation and good benefits, the GR wind power project in Australia accumulated experience for our “going global” initiative. The acquisition of the Gullen 10MW PV power project consolidated our market position in the Australian market. In 2017, we will continue to expand the Australian market, seek new M&A opportunities, and open up overseas markets under the framework of the Belt and Road Initiative.
The Management will stick to the principle of creating maximum value for all shareholders, implement the deployments of the Board of Directors, and see to it that all tasks are fulfilled. First, we will focus on quality and efficiency, strengthen safety management, improve efficiency, and ensure that all business targets of the year are attained. Second, we will improve management according to due standards, strengthen legal-based management, strictly control legal risks, and promote the safe, healthy and scientific development of the Company. Third, we will underpin the promotion of electric heating, strengthen communication with upstream and downstream enterprises, and improve the marketing system. Fourth, we will put a premium on precision management, make every effort to improve quality and efficiency, and reinforce the ability to resist risks. In face of both opportunities and challenges in the new year, the management is full of confidence in the Company’s development.
On behalf of the management and all employees, I would like to express sincere gratitude to all shareholders and investors for their trust and support.