China Longyuan Power Issued its Interim Results 2010

On Aug. 19^th, China Longyuan Power Group Corporation Ltd. officially issued its Interim Results 2010. By June 30, the consolidated income of the company is RMB 6.244 billion with a half-on-half increase of 59.6%. The income before tax is RMB1.474 billion with a half-on-half increase of 55.3%. The net profit attributable to equity shareholders is RMB 852 million with a half-on-half increase of 100.5%. And basic profit per share attributable to equity shareholders is approximately RMB0.1141.

In the first half of this year, China Longyuan Power has made the following significant achievements:

Firstly, the electricity production grew stably. The accumulated installed holding capacity is 10.491KWh among which wind power is 4.893KWh with an increase of 59.4%; coal power is 5.564KWh with an increase of 15.2%; other renewable energy is 34 million KWh with an increase of 13.3%. The average utilization hour of wind turbines is 1086. The rate of grid congestion is 4.9%. The average utilization rate of wind turbines is 98.19% with a half-on-half increase of 1.22%.

Secondly, the level of profitability increased in large scale. With the stable increase of the installation, the company continued to fortify the safety production, made a detailed work of cost control, optimized the management of wind power operation, stressed the work of tariff claim and tariff recovery, actively utilized preferential policies to decrease the financial cost, strengthened the development of CDM so that the profitability of the company could be greatly increased. In the first half, the net profit attributable to the equity shareholders is RMB 852 million with a half-on-half increase of 100.5%.

Thirdly, the tariff level kept stable. The average feed-in tariff of wind power in the first half is 565yuan/MWh(including value-added tax) with a half-on-half increase of 25yuan/MWh. The average feed-in tariff of coal power is 422yuan/MWh(including value-added tax) which is equal to that of last year.

Fourthly, the procurement cost of the wind power equipment decreased. The company continued to lower the procurement cost through the unified bidding of wind power equipment and its advantage of large scale procurement. The average procurement cost of major components of wind power equipments in the first half decreased by 10% compared with that of last year, which greatly reduced the level of construction cost of wind power project.

Fifthly, the company reduced its financing cost through a multi-channel mode. The company stuck to the fortification of unified management of capital and financial management. It developed the multi-channel financing mode and on the premise of the capital security, it stressed the optimization and management of the debt structure and tried its best to lower the financing cost. On Feb. 10, the company successfully issued the 7 year enterprise bond with fixed interest rate of 4.52% and raised RMB 1.6 billion. The subsidiary company, Jiangyin Sulong Coal Power Co. Ltd[ 1] issued RMB 0.6 billion of short-term financing bond and its term is 365 days and the interest is 3.42%.

Sixthly, project development and constructions were sped up. The company actively promoted the preliminary work of wind power project, stressed the construction of the evaluation system of wind power resources, further fortified the preliminary work and increased the ability of project design. Meanwhile, it continued to expand the reserves of wind power projects. By June 30, the volume of the accumulated reserves of wind power project was 50,000MW.

At present, the company is actively participated in the bidding for the four chartered offshore projects by NDRC. In addition, the company also paid close attention to the construction of excellent wind power project. In 2010, it recommended three projects to participate in the selection of the prize for the Excellent Electric Power Engineering by China Electric Power Construction Association and all of the three projects passed the selection and won the prize of excellent electric power engineering.

Seventhly, the company made new breakthroughs in the development of CDM. By June 30, the accumulated CDM projects approved by NDRC were 87 and 36 projects had been successfully registered, among which 11 projects were the newly registered in the first half and their relevant installed capacity was 487.4MW. In the first half, the consolidated net income of the sale of CERs and VERs was RMB162 million with a half-on-half increase of RMB45 million.

In order to guarantee the successful realization of the goals of the full year, China Longyuan Power will do a good work in the following fields in the second half: to strengthen the engineering management and stress cost control so that the company can achieve the goal of wind power projects which are ready for the production; to optimize operation and equipment management so that to achieve the annual generation capacity goals; to detail the cost management and promote marketing so as to greatly increase its level of profitability; to try its best to expand the space of development by optimizing the deployment of wind power projects and fortifying project development; to enhance the company s level of overall management by innovating management mechanism and increasing the operational efficiency; to provide strong financial guarantee for the company s development through exploiting financial channels and lowering financial cost; to stably promote development of the oversea market by using the company s advantages and deploying oversea projects. (by Fang Tao)