Interview with the President

The beautiful future of CYPC can be expected!

Q:What are considered in the strategic plan of CYPC during the "13th Five-year Plan" period?

A: The"13th Five-year Plan" is a decisive phase for China to build a well-off society. It is also an important window period for the development of CYPC. With the acquisition of power generation assets of Jinsha River, CYPC has reached a new level. At the new start point, CYPC will face the major change of developing environment during the "13th Five-year Plan" period. Under the new situation, the strategic adjustment of CYPC is mainly based on its own advantages and the environment it faces.

CYPC has advantages in hydropower resource and product. With the unique water resource from the trunk stream of the Yangtze River and the formation of reservoir group of the river basin as well as enhancement of water resource utilization ability, the value of this resource will further be embodied. With advantages in large hydropower stations and large reservoirs as well as hydropower clean energy products, advantages in cost and energy quality will further be embodied. CYPC is the largest listed power company in China, with good resource endowment and asset quality, sufficient cash flow and national sovereignty level credit rating. These are unique advantages enjoyed by CYPC.

Meanwhile, CYPC also faces a certain development pressure. The risk faced by CYPC has changed from uncertainty in incoming water to multiple risks of incoming water, market and policy etc. During the "13th Five-year Plan" period, the span of management has been greatly expanded, the number of hydropower stations operated and managed and those for which CYPC provides technical consultation will exceed 10. It faces great pressure for maintaining growth and management difficulty will be increased.

Based on the above factors, CYPC will steadfastly focus on "one main line", make great efforts in "two markets", steadily promote "three major strategies", upgrade and deploy "four guarantees", with concept innovation as the guide, marketization as the orientation and serving national strategy as the mission. CYPC will cultivate independent development ability and create an international brand for hydropower operation to enhance its core market competitiveness and realize synchronous growth of scale and performance.

Q:How will CYPC plan its main business in the "13th Five-year Plan" period after the perfect closure of the "12th Five-year Plan"?

A: CYPC now has four hydropower stations and we will work hard to finish the tough tasks of "maintaining growth and pursuing development" during the "13th Five-year Plan" period. CYPC will realize main business development through various initiatives. The first is to strengthen production management, improve quality and enhance efficiency. The second is to improve comprehensive utilization level of water resource and explore to enhance efficiency. The third is to establish a river basin overhaul and maintenance management system to strengthen the core ability of river basin overhaul and maintenance. The fourth is to actively deal with the power marketization reform and maintain its advantages in the market competition. The fifth is to focus on development by innovation and improve innovation ability.

Q:What are the new businesses and development orientations for the strategies during the "13th Five-year Plan" period?

A: While enhancing current business level, we will actively implement two strategies, namely power industry chain extension strategy and international development strategy.

The focus for extension of the power industry chain is to develop power distribution and sales. We will actively grasp the policy opportunity of power system reform and work hard to build TGEP into a comprehensive energy service enterprise with a nationwide influence during the "13th Five-year Plan" period. We will take providing clean, stable and differentiated energy service as the tenet to shape the company brand of "clean, intelligent and efficient", making TGEP stand out from the power system reform and become an enterprise respected by the society and peers.

The focus for international development is to develop overseas operation and management business sector and overseas investment and acquisition business. On one hand, we will establish business platform and business teams for operation and management of overseas hydropower stations to realize a smooth start with a rapid and sound development of operation and management for the overseas hydropower stations as soon as possible. On the other hand, we will actively seek for opportunities to invest in and acquire quality overseas power assets to expand the development room of CYPC and realize synchronous growth of scale and benefit.

Q:What safeguard measures have CYPC made to better implement the plan?

A: CYPC has made four safeguard measures.

The first is to optimize the management and control system of the company to promote efficient operation of the company. During the "13th Five-year Plan" period, CYPC's management and control system will be designed to provide support for the development of the company in accordance with the overall thought of "rational authorization, equal authority and responsibility, differentiated management and coordinated development", in order to establish a mechanism for strengthening management and gather force for brand creation.

The second is to strengthen construction of core abilities to improve the competitive advantage of the company. We will consolidate and strengthen the ability to operate and maintain large hydropower stations, establish a scientific and complete water resource dispatching system of the Yangtze River basin, and form the market-oriented power generation and marketing system. We will focus on strengthening capital operation to promote performance improvement and business development, and we will establish an information system suitable for the development of the company.

The third is to establish a uniform technical standard system and build a duplicable management mode. We will build a duplicable production and management mode to promote the overall management and coordination of power production for the company and form core advantages. We will also establish brand image to realize the output of operation brand and standards of Three Gorges Hydropower.

The fourth is to strengthen party construction and cultural works to create a harmonious enterprise atmosphere. We will strengthen party construction and legal system construction to serve for the development of the company and we will develop a top class enterprise culture suitable for the positioning of the company.

Q:How will CYPC deal with the future development during the "13th Five-year Plan" period?

A: During the "13th Five-year Plan" period, CYPC's development is still in an important strategic opportunity period in which it can achieve a lot. But it also faces a number of risks. We will take innovation as the first impetus to usher in development and grasp opportunities, and establish the development concept of innovation, coordination, greening, openness and share to better deal with various risks and challenges. We will maintain our development advantages to promote the development of the company to a new level.

As the largest listed power company of China at present, CYPC will further grasp the opportunities brought by reform of state-owned enterprises, power market reform and the Yangtze River Economic Zone development strategy, realize coordinated development, open development, innovative development, green development and sharing development, provide clean energy for the society and provide satisfactory return for shareholders. Let's look forward to the beautiful future of CYPC!

Development Strategy

During the "13th Five-year Plan" period, CYPC will be dedicated to becoming an enterprise in the Yangtze River Economic Zone. CYPC will become a respected enterprise by the society, competitors in the power market, and an ideal objective for value investment on the capital market. CYPC is an enterprise representing the highest level in the global hydropower industry in river basin dispatching, operation, management and technical standards and a happy homeland where employees can live and work in peace with a smooth career development path.

Development Goals:

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