Chairman’s Message
Dear shareholders,
The year 2017 marked the implementation of the “Thirteenth FiveYear” Plan. While the national economy maintained steady growth and exceeded the expectation, the energy structure underwent significant optimization. In the face of the complex and volatile external environment and the drastically changing domestic market, the Group overcame challenges through ongoing exploration and seized opportunities in adversity. In pursuit of economic benefits, it strived to produce profits from stock, achieve growth from increment and maintain good development momentum. As of the end of 2017, the Group had a total consolidated installed capacity of 8,031 MW and recorded stable growth in installed capacity of the wind power and photovoltaic segments. The utilization hours of wind power and photovoltaic power reached 2,044 hours and 1,558 hours respectively, staying ahead of the nation’s average.
Lowcarbon energy development, climate and environmental change initiatives, as well as green and sustainable development, have become the common goal of the global community. The PRC is poised for the restructuring, optimization and transformation of the energy structure and has achieved initial progress. Under the “Thirteenth Five-Year” Plan, China has set the target to increase the proportion of non-fossil fuel consumption to 15% by 2020. This provides unprecedented opportunities and challenges to clean energy development.
As stated in the report to the “19th CPC National Congress”, “the PRC economy has been transitioning from a phase of rapid growth to a stage of highquality development”. Highquality development refers to meeting the evergrowing needs of people for a better life. It represents the new development philosophy, where innovation is the primary driving force, coordination is a feature of organic growth, green development is the mainstream, opening up is the essential way and sharing is the fundamental purpose. Adhering to the development strategy of “innovation, coordination, green, opening up and sharing”, the Board aims to eliminate bottlenecks in development and resolve deeprooted conflicts. It will expand financing channels, enhance risk management and support the advancement of stateowned enterprises reform for indepth integration, innovation and development, thereby preparing for the new round of challenges.
The “Thirteenth FiveYear” Energy Plan will be taken to the next level in 2018. The Group will grasp the opportunity as “clean and lowcarbon energy development becomes the main theme in the adjustment of energy structure” in the “Thirteenth FiveYear” Energy Plan. To this end, it will optimize the energy portfolio, coordinate the domestic and foreign markets, implement the semiorganic growth strategy, and follow the keynote of achieving progress while maintaining stability. It will also focus on the principal activities and build economies of scale to improve the profitability of assets. Moreover, it will call for joint efforts in integrated development, proceed with reform and innovation, and take the peopleoriented approach to work towards the winwin for enterprise and people, so as to bring more attractive investment returns to shareholders!
General Manager’s Message
In 2017, facing the complex and volatile external environment as well as significant domestic changes, the management worked together and took the leading role with the support of the Shareholders and investors and the guidance of the Board. The Group further strengthened management and control, expanded the business scale and realized growth potential as a diligent, practical and ambitious corporate over the year by adopting the operational approach of “building a solid foundation, refining
management and control, optimizing business plans and boosting efficiency through innovation”. As at the end of 2017, the Group had consolidated total assets of RMB51.0 billion. It had an installed capacity of 8,031 MW under operation, with annual power generation and annual heat generation reaching 25.3 billion kWh and 20.86 million GW respectively. The operating revenue for the year was RMB14.2 billion and the total profit was RMB2.45 billion.
The Group focused on boosting quality and efficiency in 2017. It strived to enhance and expand principal activities, achieved breakthroughs with new growth and implemented the business model driven by development and merger, which led to the rapid and high-quality expansion of the Group. Currently, the Group had an installed capacity of approximately 1,000 MW under construction and a project pipeline of over 5,000 MW. The wind power and photovoltaic projects in Australia have begun to take shape and delivered returns as expected. The overall business of the Group showed good momentum.
During the “Thirteenth Five Year Plan” period, the state has concentrated on developing clean and low carbon energy, bringing the installed capacity of renewable energy into a new round of rapid growth. This opened up a golden opportunity for the Group. We will proceed with the “three space” strategy. Under which, we will first centre on the Beijing-Tianjin-Hebei Coordinated Development Strategy and closely monitor key regional markets including Xiong’an New Area and the venues of the Winter Olympics. Secondly, we will promote development across the country and expanded domestic market. Thirdly, we will follow investment opportunities in countries and regions along the “Belt and Road” and continue to explore overseas market.
Following the 19th National Congress, the clean energy sector has entered the “new era of green development”. Our employees will diligently comply with the new requirements, actively adopt new practices, push hard for new breakthroughs and put great efforts in facilitating new growth of the Group, thereby creating exciting investment returns for all shareholders.
On behalf of the management and all staff, I hereby extend my heartfelt gratitude to all Shareholders and investors for your long-term support and trust.