annual results 2015 - todayirsource: corporate annual report 2015, ifrs in 2015, the company accrued...
TRANSCRIPT
Annual Results 2015
April 7th, 2016
Hong Kong
2
2015 Operational Performance and Analysis
Review of the Corporate Performance in “The 12th Five-
Year Plan” Period
2016 Market Environment Analysis
Business Prospects in 2016
1
2 Source: Corporate Information and Data
Results Summary: 2015 Operation Highlights
30000
32000
34000
36000
38000
40000
42000
44000
2014 2015
41341 42338
2.41%
1000
1200
1400
1600
1800
2000
2014 2015
1888.45
1697.252 10.12%
3300
3400
3500
3600
3700
3800
3900
2014 2015
3486
3848
10.38%
0
2
4
6
8
10
12
14
2014 2015
9.21
13.7
48.75%
Installed Capacity
(MW)
Gross Power Generation
(100 million kWh)
Coal Production
(10 thousand tonnes)
Polypropylene Production
(10 thousand tonnes)
400
500
600
700
800
2014 2015
701.94
618.9
11.83%
0
10
20
30
2014 2015
17.67
27.88
57.73%
0
0.05
0.1
0.15
0.2
0.25
2014 2015
0.13
0.21
57.68%
78
78.5
79
79.5
2014 2015
79.36 79.38 0.02%
Sales Revenue
(RMB: 100 million)
Net Profit Attributable to Shareholders
(RMB: 100 million)
Earnings Per Share
(Yuan/shares) Debt-to-Asset Ratio
(%)
3 Source: Corporate Annual Report 2015, IFRS
In 2015, the company accrued the provision for impairment of assets of RMB 1.371 billion, bad debt provision of RMB
1.249 billion, inventory depreciation provision of RMB 347 million, and long-term investment impairment provision of
RMB 2.958 billion (This provision doesn’t impact the consolidated gross profit and net profit attributable to shareholders)
The impairment provisions mentioned above reduced the company profit in 2015 by RMB 2.967 billion, reduced the net
profit attributable to the parent company in the consolidated financial statement by RMB 2.062 billion, and reduced the
net profit of the company by RMB 1.381 billion
Results Summary: 2015 Financial Highlights
20000
25000
30000
35000
40000
45000
Managed Capacity (MW) Attributable Capacity (MW)
41341
30448
42338
32127
End of 2014 End of 2015
76.15%
6.99%
12.23% 4.18% 0.46%
Capacity Structure by the end of 2014
Coal-fired Power Gas-fired Power Hydro PowerWind Power Solar Power 4
Growth in Installed Capacity in 2015
2.41%
5.51%
In 2015, the company’s installed capacity has achieved 5.51% yoy growth, and the power
generation capacity has been raised.
In 2015, the company’s energy structure has been further optimized by raising the weight of
clean energy in gross capacity.
Source: Corporate Information and Data
73.88%
6.83% 14.41%
4.43% 0.45%
Capacity structure by the end of 2015
Coal-fired Power Gas-fired Power Hydro Power
Wind Power Solar Power
Power Business: Steady Growth and Structural Optimization
Power Business: Utilization Hours Dropped, but Remained
Above Sector Average
5 Source: Corporate Information and Data, CEC
In 2015, the company’s average
utilization hours has dropped on
yoy basis, but the utilization
hours of hydropower increased.
In 2015, except for
hydropower, the company’s
utilization hours of thermal
power, wind power and
average are all above the
sector average.
YOY Growth of Utilization Hours of the
Company in 2015 (Hours)
Utilization Hours of the Company Compared
with Sector Average (Hours)
0
1000
2000
3000
4000
5000
6000
Average Thermal Power Hydropower Wind Power
4701 5046
3427
2000
4240 4482
3595
1875
2014 2015
0
1000
2000
3000
4000
5000
Total Thermal Power Hydropower Wind Power
4240 4482
3595
1875
3969 4329
3621
1728
Company Average 2015 Sector Average 2015
0
20
40
60
80
100
120
140
Coal-fired Power Gas-fired Power Hydropower Wind Power Solar Power
122.34
2.23 5.49 3.09 0.46
117.13
6.48 10.48 3.08 0.61
2014 2015
6
Comparison of Profitability of Power Business by Segment
(RMB:100 million)
Source: Corporate Information and Data
Profit Split of Power Business by Segment in 2015
85.01%
4.70% 7.60%
2.23% 0.44%
Coal-fired Power Gas-fired Power Hydropower Wind Power Solar Power
Power Business: Obvious Advantage of Power Sector and
Outstanding Contribution from Thermal Power Business
140
145
150
155
160
165
170
2014 2015
169.66
151.18
7 Source: Corporate Information and Data
Cost Breakdown for 2014 Cost Breakdown for 2015
10.89%
Unit Fuel Cost of Thermal Power Generation (RMB/MWh)
1.06%
42.79%
17.86%
3.62%
5.07%
13.57%
15.99%
1.23%
38.98%
20.21%
2.88%
6.15%
14.19%
16.33%
Power Business: Effective Cost Control
0
0.2
0.4
0.6
0.8
1
1.2
2008 2009 2010 2011 2012 2013 2014 2015
1.14
0.45 0.42 0.38 0.37 0.34 0.25
0.17
8 Source: Corporate Information and Data
SO2 emission (g/kWh)
In 2015, the company realized the unit coal consumption of 305.72 g/kWh, decreased by 3.55g /kWh on yoy basis.
In 2015, the company completed the ultra-low emission upgrade and renovation for 29 units; reached the accumulative
rate of desulphurization of 100.00%, and comprehensive desulphurization efficiency of 97.13%; and reached the
accumulative deNOx rate of 99.44%, and comprehensive deNOx efficiency of 81.12%.
0
0.5
1
1.5
2
2.5
2008 2009 2010 2011 2012 2013 2014 2015
2.03
1.7
1.4 1.33 1.22
0.84
0.36 0.24
NOX emission (g/kWh)
0
0.05
0.1
0.15
0.2
0.25
2008 2009 2010 2011 2012 2013 2014 2015
0.24
0.17
0.13 0.12 0.1 0.1
0.07 0.046
Ash emission (g/kWh)
0
0.05
0.1
0.15
0.2
0.25
2008 2009 2010 2011 2012 2013 2014 2015
0.23
0.17
0.075 0.06 0.05
0.038 0.021 0.032
Sewage emission (kg/kWh)
Power Business: Continuous Improvement in Emissions
Indicators and Obvious Energy Saving Effect
9
2014年 ,公司共7项电源项目获得核准,共计2796 MW 。
Hydropower Wind power Solar power Thermal power
Leizhou” 2x1,000MW Coal-fired Power
Generation Project
Tangshan Northern Suburb 2× 350MW CHP Project
Fengning Datan 200MW Wind Farm Project
Fengning Phase I 20MW Solar Power Generation Project
Xilinhot 2x660MW Coal-fired
Power Generation Project
Huludao 2x350MW Coal-fired
Thermal Power Project
Jintan 2x400MW Gas Turbine CHP Project
Rugao Economic And Technological Development
Zone 2x12MW CHP Project
Xinyu Phase II 2x1,000MW Expansion Project
Wuning Sun Mountain 50MW Wind Farm Project
Shicheng Jinhua Mountain 99.5MW Wind Farm
Project
Pingluo 2x660MW Coal-fired
Power Generation Project
Qingtongxia Shashidunliang
48MW Wind Farm Project
Golmud Phase III 50MW Solar Power Generation Project
Gonghe Phase III 10MW Solar Power Generation Project
Gonghe Phase IV 20MW Solar Power Generation Project
Pinghu 32MW Wind Farm Project
Zuoyun Xiaojingzhuang Village 49.5MW Wind
Farm Project
Wujiang River Yinpan Hydropower Station
45MW Capacity Increasing Project
In 2015, the company obtained government approval for projects with total capacity of 9,488.5 MW, among which
8,864 MW for thermal power projects, 479.5 MW for wind power projects, 100MW for solar power projects, and 45MW
for hydropower capacity increasing projects.
Source: Corporate Information and Data
Power Business: Preliminary projects Bore Fruit
Coal Production 2012-2015
(10 thousand tonnes)
Source: Corporate Information and Data 10
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2012 2013 2014 2015
4477
3663 3486
3848
Non-power Business: Promoting Steadily
Coal-to-Chemical Business
Operation
Duolun Coal –to-Chemical Project: 137,000
tonnes of PP produced in 2015;
Hexigten Banner Coal-based Natural Gas
Project: 552 million standard cubic meters of
natural gas produced in 2015.
Reorganization
On July 7, 2014, Datang Power signed the
Framework Agreement for Reorganization of
Coal-to-chemical Segment and Related Projects
(“Reorganization Framework Agreement”) with
China Reform Holdings.
On March 29, 2016, Datang Power entered into
a termination agreement to the Reorganization
Framework Agreement with China Reform
Holdings to confirm the termination of the
Reorganization Framework Agreement.
China Datang Corporation will direct and
promote the reorganization of the coal-to-
chemical segment and other related projects
further.
12
2015 Operational Performance and Analysis
Review of the Corporate Performance in “The
12th Five-Year Plan” Period
2016 Market Environment Analysis
Business Prospects in 2016
11
From 2011 to 2015, the company adhered
to the value thinking and benefits
orientation, focused on strengthening
advantages of core power generation
business and promoting the structural
adjustment, and improved the production
and operation situation, laying a solid
foundation for the sound development in
the period of “The 13th Five-Year Plan”!
Source: Corporate Information and Data
12
Business
Performance
Safety
Production
Structural
Adjustment
Energy
Conservation
and Emission
Reduction
Technical
Innovation
Corporate
Governance
Review of “The 12th Five-Year Plan” Period(Ⅰ)
Operating Performance Over the past five years, the total assets of the
company have increased from RMB 210.8 billion to RMB 303.4 billion, increasing by 43.92%. The installed capacity has increased from 36.3 million KW to 42.34 million KW, increasing by 16.63%. The annual profit has increased from RMB 4.624 billion to RMB 6.568 billion, increasing by 42.04%. The ratio of loss-making coal-based power enterprises has decreased from 48% to 8%, and many enterprises suffering from long-run loss have become profitable.
Safety Production Over the past five years, the company has successfully
completed the task of ensuring power supply for the Eighteenth National Congress, APEC Conference, 70th Anniversary of Victory of the Anti-Japanese War, and the activities during “two festivals” and “NPC & CPPCC”. 26 generating units of the company have gained the title of Reliability Golden Generating Units (Grade A), accounting for 13.5% of the total number in China. The safety management level of enterprises engaging in coal chemical, coal mining, and metallurgical industries have been continuously improved, and the production safety has been under control.
Structural Adjustment During the period of “The 12th Five-Year Plan”, the
company approved 22.6 GW of power generating projects in total, and realized the total production capacity of 7.21 GW. The power generation structure has been constantly optimized; the structure of coal-fired power, hydropower and wind power with the proportions of 88.18%, 10.62% and 1.20% has been turned to that of coal-fired power, hydropower, wind power, gas turbine and solar power generation with the proportions of 73.88%, 14.41%, 4.43%, 6.83% and 0.45%. The power supply of the company has become greener and more efficient.
Source: Corporate Information and Data
13
Review of “The 12th Five-Year Plan” Period(Ⅱ)
Energy Conservation and Emission Reduction Over the past
five years, the net coal consumption rate of coal fired units of the company has reduced by 17.87g/kWh. 59 units have gained the title of Energy Efficiency Benchmarking Winning Units of National 600MW Coal-fired Units. According to the national policies and new local environmental protection requirements, the company has accelerated the implementation of upgrading and reconstruction of environmental protection systems of the operating units, and the installing rate of denitrition equipment has the first to reach 100% among similar enterprises. It has arranged the ultra-low emission transformation for 31 units, and the implementation progress and coverage have reached the industry leading level. Over the past five years, the annual total emissions of SO2 and NOX have respectively decreased by 90% and 89.2%, over-fulfilling the emission reduction task of “The 12th Five-Year Plan”.
Technical Innovation During the period of “The 12th Five-Year Plan”, the
company assumed 6 projects of "863" Plan, and 12 national and provincial & ministerial-level scientific supporting projects; it gained the National Award for Science and Technology Progress for 2 times, made 98 industry level and provincial & ministerial-level scientific and technological achievements, and gained 576 authorized patents.
Company Governance During the period of “The 12th Five-Year Plan”, the
company added A shares and collected the fund of RMB 6.74 billion, and issued the corporate bonds of RMB 9 billion at low cost for three successive times. The company has been continuously listed in Top 250 Global Energy Companies, Top 100 Listed Companies in China, Top 100 Brand Value Companies, the Best Listed Companies of Investor Relations Management, Listed Companies with Best Investment Value during the Period of “The 12th Five-Year Plan”, and Listed Companies with the Most Social Responsibility, etc.
14
Review of “The 12th Five-Year Plan” Period(Ⅲ)
Source: Corporate Information and Data
16
2015 Operational Performance and Analysis
Review of the Corporate Performance in “The 12th Five-
Year Plan” Period
2016 Market Environment Analysis
Business Prospects in 2016
15
In 2016, the macro economic growth will stably increase at a lower speed, and the year-on-year
growth rate of GDP is expected to be 6.5%; driven by economic transformation, the year-on-year growth
rate of total electricity consumption is expected to be 1%-2%.
In 2016, the incremental installed capacity will be 100GW, among which 52GW belongs to non-fossil
energy. At the end of the year, the national installed capacity will reach 1610GW, and the proportion of
non-fossil fuel capacity will be around 36%.
The annual utilization hours of power generation equipments is expected to be around 3700 hours in
2016, and that of coal-based power generation equipments is expected to be around 4,000 hours.
Monthly social electricity consumption and growth in 2013
Source: National Energy Administration
16
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
0
1000
2000
3000
4000
5000
6000
Total electricity consumption (100 million kWh) Year-on-year rate (%)
Macro-economy and Power Demand-supply Analysis
17
Trend of general average price of thermal coal with calorific value of 5,500 kcal at ports
in the Circum- Bohai - Sea Region from May, 2012 to March, 2016
The economic development of China is in a new normal, and new changes have taken place in coal
demand: Firstly, the economic growth has slowed down to a medium – high speed from high speed, and it
will be hard to reach the rate of over 10%; secondly, the economic structure has been deeply adjusted, the
second industry faces the pressure of de-capacity, and the third industry as the driving force of economic
development are growing fast; thirdly, energy consumption has turned to be renewable and low-carbon.
The market price of thermal coal has become historically low. Although the coal supply environment is
loose in general, the coal price will still maintain low; however, the declining space will be quite limited.
Meanwhile, there is also the possibility of price rising if the oversupply situation is reversed and the
excess capacity is eliminated through the greater efforts made by the government to weed out and shut
down the coal mines with backward production capacity.
Source: Qinhuangdao Coal Net
100
200
300
400
500
600
700
800
900
General average price of thermal coal with calorific value of 5,500 kcal at ports in the Circum- Bohai - Sea Region
Steady and Gradual Decrease in Coal Price
18
In March, 2015, Several Advices of State Council on Further Deepening the Power
System Reform (ZF [2015] No.9) was officially issued, starting a new round of
power market reform.
On November 30, 2015, the 6 supporting documents of power system reform were issued on
the same day: Practical Suggestions on Promoting the Reform of Transmission-Distribution
Price, Practical Suggestions on Promoting the power market Construction, Practical
Suggestions on Establishment and Standardized Operation of Electricity Trading Agencies,
Practical Suggestions on Orderly Releasing the Power Generation and Utilization Plan,
Practical Suggestions on Promoting the Reform of Marketing Electricity Side, and Guiding
Suggestions on Strengthening and Regulating the Supervision and Management of Power
Plants with Self-Provided Coal.
On December 1, 2015, National Energy Administration issued letters for asking for modification
suggestions of Basic Rules for power market Operation (Draft), power market Regulatory
Measures (Draft), and Basic Rules for Medium and Long Term Trading of Electricity (Draft).
Transmission-distribution price reform pilots: 18 provincial power grids including the power grids of Anhui, Ningxia, Yunnan, etc.
Comprehensive reform pilots: Yunnan, Guizhou, Shanxi
Electricity marketing reform pilots: Chongqing, Guangdong
In March, 2016, Beijing Electric Power Trading Center and Guangzhou Electric Power
Trading Center were formally founded.
On March 14, 2016, National Development and Reform Commission issued the Notice on Relevant Matters of
Expanding the Range of Transmission-Distribution Price Reform Pilots, to further expand the range of
transmission-distribution price reform pilots. The Notice stated that the 12 provincial power grids of Beijing,
Tianjin, South Hebei, North Hebei, Shanxi, Shaanxi, Jiangxi, Hunan, Sichuan, Chongqing, Guangdong, and
Guangxi, the power grids in pilot provinces of state electricity system reform, and those in north China would
be included in the range of transmission-distribution price reform pilots in 2016.
In 2016, the power
market reform
will be speeded
up and
strengthened
Steadily Promoting Power Market Reform
Source: China Electricity Council
20 19
2015 Operational Performance and Analysis
Review of the Corporate Performance in “The 12th Five-
Year Plan” Period
2016 Market Environment Analysis
Business Prospects in 2016
20
The thermal coal price will maintain at a
historically low level 1
The overall positive trend of economic
development in China will not be changed 2
The financing environment for corporate
will continue to be improved 5
The strong support from the parent company
will add new development momentum 6
The advantages of company’s ultra-low
emission renovation will come out 4
Obvious declining trend of
electric demand
Operating pressure caused by
the lowering of electricity price
Inevitable price competition
Increased pressure of energy
conservation and emissions
reduction
Unoptimistic business
situation of Non-power projects
Source: Corporate Information and Data
The development prospect of clean
energy will be broader 3
Challenges and Opportunities for the Company in 2016
21
※Center on one main line
※Promote “five major advantages”
Cen
ter o
n o
ne
ma
in lin
e,
pro
mo
te “
five
ma
jor a
dvan
tag
es”
Taking “the establishment of updated version of
power generation industry” as the main line of the work
throughout the year, to consolidate and improve core
advantages of the company.
Promote the advantage of cost leading
Promote the advantage of clean energy development
Promote the advantage of technical innovation
Promote the advantage of professional control
Promote the advantage of talent guarantee
Corporate Operational Target in 2016
Source: Corporate Information and Data
22
Optimize the industrial structure Optimize the power structure
Specific measures: optimize “four major structures”
Optimize the regional structure Optimize the equity structure
The overall development idea of the
company in the period of “The 13th
Five Year Plan” is: adhere to the value
thinking and benefit orientation, take
the improvement of the development
quality and efficiency as the core, the
establishment of updated version of
electric generation industry as the
main line, and technical innovation as
the momentum, to accelerate the
structural adjustment, realize the
high-efficient, clean and sustainable
development of electric generation,
and construct Datang Power as a well-
known integrated energy service
provider with outstanding core
competence and strong sustainable
developing ability.
Overall Development Idea and Specific Measures in the
Period of “The 13th Five Year Plan”
Source: Corporate Information and Data
23
Thank You!