China Longyuan Power (00916): 2010 Performance Announced, with Net Profit Attributable to Shareholders Rising by 125.8% YoY

On March 16, 2011, China Longyuan Power Group Corporation Limited (00916.HK) held 2010 performance conference in Hongkong. President Zhu Yongpeng attended the conference and made a speech; executive director and general manager Xie Changjun introduced operating performance in 2010; directors Wang Baole and Luan Baoxing, chairmen of supervisory board Chen Bin, supervisor Yu Yongping, deputy general manager Huang Qun, general accountant Li Hongmei and secretary of the board of directors Jia Nansong all attended this conference.

Zhu Yongpeng said that wind power is still the main profit growth point of Longyuan.

In 2010, Longyuan realized operating revenue of RMB14.213 billion (+45.9% YoY), net profit attributable to shareholders of RMB2.019 billion (+125.8% YoY) and basic EPS of RMB0.27 (+55.4%).

In 2010, the generating capacity from wind power reached up to 10.094 billion KWH (+62.5% YoY); sales income ran into RMB4.613 billion, which increased RMB1.861 billion or 67.6% than the RMB2.752 billion of 2009.

In the past year, Longyuan has adjusted wind power development strategy to reinforce developing wind power projects in areas of low wind speed and higher electricity price, which basically shapes the national wind power development pattern of six wind power bases as the body and inland power wind as complement.

As of 2010 year-end, installed capacity by wind power has arrived at 6,556 MW (+45.6% YoY), which firmly holds the first rank in Asia. Meanwhile, offshore wind power business saw dramatic breakthroughs: 1) the first offshore (intertidal zone) wind power plant worldwide Jiangsu 32 MW test wind power plant of intertidal zone was completely put into operation; 2) successfully winning the first phase national wind power franchise bidding project Jiangsu Dafeng 200 MW offshore (intertidal zone) franchise project; 3) approving Jiangsu Rudong 150 MW offshore (intertidal zone) project.

In respect of project reserve, reserve capacity of Longyuan s wind power project has achieved a total of 61,000 MW by 2010 end, of which reserve of offshore wind power project has come to 4,450 MW, and offshore wind power will become the new growth point for Longyuan s future development.

Longyuan s leading advantage in wind power has been widely recognized by industries and the government: 1) in 2010, Longyuan s three wind power plant projects of Tongyu phase 3, Bayin franchise and Yenanxi won 2010 China electric power quality engineering award; 2) Longyuan was approved to establish China s first national occupational skills assessment station of wind power industry, occupational skills assessment station of industry-specific type and national occupational skills assessment station of Guodian Longyuan wind power generation ; 3) national energy wind power operation technology research center authorized by National Energy Administration, which is the sole national level wind power research center nationwide.

In 2010, Longyuan won another price of Top 500 Excellent Brands in Asia, with the rank rising to 89th from 300th in 2009, which further enhanced brand influence of the company.

As the leading power generation group of renewable energy, besides wind power, Longyuan actively expands other renewable energy projects, such as solar energy, geothermal energy, tidal energy and biomass energy, etc. Up to December 31, 2010, reserved installed capacity of solar energy project has reached 1,950 MW.

With the good performance of 2010, Zhu Yongpeng is quite optimistic on development prospect of Longyuan; he promises to benefit investors and the society with better performance.

Longyuan has set 10 objectives for 2011: 1) to further intensify wind power development and put extra 2,000 MW wind power into production; 2) to strive to build high-quality wind power engineering, with other renewable energy developing in harmony; 3) to keep safe and stable manufacturing and all production quotas continue to lead; 4) to begin building large offshore project and consolidate the leading advantage of offshore wind power; 5) to give priority to oversea project layout and seek for breakthrough of oversea project; 6) to explore photovoltaic power and micro-grid projects and first start pilot project construction; 7) to make full use of whole financing advantage and strengthen financial cost management; 8) to effectively use capital operation platform and actively take over high-quality wind power project; 9) to make efforts to build first-class team and continue advancing comprehensive quality of the enterprise; and 10) to keep annual operating performance stable and ensure steady profit growth.