China Longyuan Power held videophone conference on analysis of 2010 economic activities and 2011 fund management

On the afternoon of Feb. 21, China Longyuan Power held the Videophone Conference on the Analysis of 2010 Economic Activities and 2011 Fund Management. Xie Changjun, general manager of the Company presided over the conference and delivered a summary speech. LI Hongmei, chief accountant, and Fei Zhi, deputy general manager, also attended it.

At the conference, Fei Zhi overviewed 2010 operation of China Longyuan Power and put forward specific requirements on 2011 operations. Li Hongmei analyzed the present situation of the credit market in macro-economic control and introduced the work idea and strategy of 2011 fund management.

Xie Changjun said that in 2010 the Company realized continuous growth: indexes including the wind power profitability of per kWh, profitability of per KW installation, capital profit margin, and ROE were higher than those in the same period last year. The profit of thermal power was better than expected and its risk resistance capability was significantly enhanced.

However, on the other hand, the pressure to reduce loss still existed in other new energies: the realization of the objective of biomass generation was directly influenced by the increase of fuel price and the completion rate of PV generation was low due to the delay of the polysilicon components supply.

Xie Changjun put forward some requirements on the Company s 2011 operations: it is imperative to make thorough analysis, to do a good job of production and construction, to reduce power rationing and ensure generation increase; it is imperative to reduce cost and increase efficiency through strictly controlling operation cost, strengthening fundraising and fortifying the means of fund management; it is imperative to further consolidate the achievement that the Company had made in wind power field and make full use of the development potential; it is imperative to keep pace with the time, accelerate system innovation and maintain sustainable development.

As to fund management, in 2011, the central government would implement credit tightening policy. As a result, the pressure of corporate fundraising would increase. Although China Longyuan Power had raised sufficient fund through its successful IPO and issuance of bonds, the Company should also stress capital management. The principal duty leaders of each subordinate unit were required to study capital management strategy, widen fundraising channel and ensure capital supply.

After two years practice, the Company s group capital management mode had been initially effective and in the special credit conditions this year, this mode would play greater role.

The leaders attending this conference in the main venue include directors of each department of the headquarters of the Company, general managers of the units in Beijing, company leaders in charge of finance and operation; other leaders attending the conference in the sub-venue are general managers, leaders in charge of the finance and operation, and duty persons of relevant department of each subordinate unit.