During the year, the company was confronted with unprecedented challenges in its operation and development under a grim operating environment. Facing such enormous operating pressure, the company took initiatives in planning budgets, rigorously enhancing production and operation, and stringently controlling costs and expenses, with a view to conscientiously mitigating the impact of various factors that depressed profits and ensuring steady, safe and orderly production and operation management of the company, thereby maintaining profitability for the company.
During the year, total power generation of the company and its subsidiaries amounted to 126.689 billion kWh, representing an increase of 7.12% when compared to the Previous Year. Total on-grid power generation amounted to 119.106 billion kWh, representing an increase of 6.97% over the previous year.
The increases in total power generation and on-grid power generation were mainly attributable to an increase in the capacity of operational generating units of the company and its subsidiaries as well as the safe and stable operation of the generating units.
Comparing to the Previous Year, the company and its subsidiaries’ newly installed capacity increased by 5,162MW. Given the shutdown of a 200MW generating unit at Xia Hua Yuan power plant, the company and its subsidiaries had a net capacity increase of 4,962MW.
During the Year, no casualties or material damage to the production facilities occurred to the company and its subsidiaries during the course of power production. The equivalent availability factor of operational generating units amounted to 95.64%, representing an increase of 1.02 percentage-points as compared to the previous year.
Achieved remarkable results in energy savings and emissions reduction
During the Year, while striving to increase power generation, the company proactively responded to the State’s appeal for environmental protection, energy savings and emissions reduction by pushing forward environmental management and implementing Green Operation. During the Year, the company established an environmental protection online supervision system in order to obtain timely data related to environmental protection of the enterprises belonging to the company. Meanwhile, the company endeavored to commence technology innovation to enhance the operational mode of the generating units so as to raise their energy efficiency. During the Year, the coal consumption of the company decreased by about 4.87g/kWh over the Previous Year, while the consolidated electricity consumption rate of power plants was 6.01%.
Since 2004, the company has successively invested CNY2.7 billion in environmental protection works for its power plants. As at the end of 2008, the coal-fired generating units of the company and its subsidiaries achieved a desulphurization installation rate of 100%. The emission rates of smoke ash, sulphur dioxide, nitrogen oxides and waste water decreased by 24.74, 62.72, 20.82 and 1.11 percentage-points, respectively, over the Previous Year, which are substantially lower than the national average levels.
The company also focused on strengthening the management of water saving in coal-fired power plants and proactively promoted the application of new technologies, new techniques, new systems and new equipment on water saving.
As at the end of 2008, eight air-cooling generating units and ten seawater-cooling generating units commenced operation, thereby leading to a decrease of 37.8% in water consumption per unit power generation of the company.
The company valued the recycling of water resources and carried out treatment and recycling of industrial waste water. Ten of its enterprises including Xia Hua Yuan Power Plant and Gao Jing Thermal Power Plant realized “zero emission” of industrial waste water.
The company took an active role in the development of a recyclable economy, emphazing the strengthening of recycled and integrated use of pulverized fuel ash, desulphurised gypsum and waste water, as well as the development and the use of high-aluminum pulverized fuel ash. In 2008, the company’s integrated use of pulverized fuel ash amounted to 11.54 million tones with an integrated use rate of 65.7%.
Implemented turn-around and profit increasing measures to realise profits for the company
During the Year, impacted by unfavourable factors such as a surge in fuel coal prices, a decrease in power demand, limited increases in tariffs and difficulties in financing for companies, the company witnessed a sharp decline in its profitability.
Faced with such tough operating environment, the company kept abreast of the trends of the market while taking initiatives in planning budgets, strengthening internal management and at the same time creating a favourable external environment, thereby rigorously enhancing production and operation:
— stepped up efforts in pressing delivery and transport of fuel coal, expanded procurement channels, and effectively controlled fuel costs;
— Conscientiously coordinated and reasonably realigned the operation method of generating units, thereby achieving “every watt counts”;
— adjusted priority of power generation with higher profit margins and optimized the power generation structure, with a view to maximizing economic efficiency;
— increased revenue through measures including implementing the fuel-tariff pass-through mechanism, proactively seeking adjustments in thermal prices and ensuring the securing of satisfactory desulphurization tariff rates. In particular, two implementations of fuel-tariff pass-through mechanisms have increased revenue by about CNY1,500 million; the increases of thermal prices of certain power plants have increased revenue by CNY48 million; and the desulphurization tariff rates secured have increased revenue by CNY500 million;
— strengthened daily profit analysis, and implemented cash management and control measures in order to enhance funds usage efficiency.
Through thorough organization and conscientious work, profit for the company has been ensured. During the Year, the company and its subsidiaries realized net profit attributable to equity holders of the company of about CNY761 million, representing a decrease of about 78.64% compared to the Previous Year.
Achieved new breakthroughs in basic construction works
During the Year, the company’s preliminary works in coal-fired, hydropower, nuclear power and wind power proceeded smoothly with sixteen projects being approved by the State. Of these approved projects, five were coal-fired power projects with a total capacity of 3,600MW; two were hydropower projects with a total capacity of 700MW; and eight were wind power projects with a total capacity of 391.3MW. Meanwhile, Phase 1 of the Fujian Ningde Nuclear Power Project with a total capacity of 4,000MW was approved and officially commenced construction. On non-power business, Phase 1 of the Unit 2 coal mine located east of Shengli Coal Mine, Baihao Railway and Phase 2 of Hufeng Railway were approved. The details are as follows:
Coal-fired power projects: Two 600MW generating units at Phase 4 of Tuoketuo power generation project; two 300MW generating units at the Jinzhou Thermal power project; two 300MW generating units at Phase 2 of the Yungang thermal power project; two 300MW generating units at the Zhang Jia Kou thermal power project; and two 300MW generating units at the Fengrun thermal power project.
Hydropower projects: Yinpan hydropower project with a generating capacity of 600MW; and Dandahe hydropower project with a generating capacity of 100MW.
Nuclear power project: Four 1,000MW generating units at Phase 1 of the Ningde Nuclear power project.
