Cash flow of 2016

Net cash flows from operating activities

38.99billion RMB

Net cash flows from investment activities

-44.23billion RMB

Net cash flows from financing activities

4.07billion RMB

Effect of foreign exchange rate changes on cash and cash equivalents

100million RMB

Net increase/(decrease) in cash and cash equivalents

-1.16billion RMB

Balance of cash and cash equivalents at the end of the year

3.37billion RMB

Assets structure of 2016

Total current assets

9.075billion RMB

Total non-current assets

289.82billion RMB

Total assets

298.895billion RMB

Total current liabilities

62.111billion RMB

Total non-current liabilities

108.258billion RMB

Total liabilities

17.037billion RMB

Total owner's equity

128.526billion RMB

Changes in Dividend Distribution Policy

According to Article 180 of Articles of Association, the company can distribute dividends by cash or stock and shall distribute by cash bonus with priority. In principle, cash bonus shall be distributed once every year, and the company can distribute profit in the midterm if the conditions are met. The condition for distributing cash bonus is that the company makes profit in the current year; if operation conditions of the company are good, and the Board of Directors thinks that distributing stocks and dividends would be good for the long term development of the company and overall interest of all shareholders, it can propose the plan for distribution of stocks and dividends apart from the said cash bonus distribution. In principle, cash bonus of the company each year shall be no less than 50% of the profit of the parent company distributable to shareholders in the current year. For profit distribution from 2016-2020, no less than RMB 0.65 per share shall be distributed each year as cash bonus; for profit of 2021-2025, cash bonus shall be distributed each year in the amount of no less than 70% of the net profit realized in the year. Profit distribution plan of the company shall be deliberated and approved by Board of Shareholders. After resolutions are made for profit distribution plan on Shareholders Meeting of the company, the Board of Directors shall complete dividend distribution within 60 days after the Shareholders Meeting. The profit realized in the year and distributable to shareholders mentioned in the Articles of Association refers to the after-tax profit realized by the parent company in the year after offsetting losses and withdrawing accumulation fund.

Dividend Distribution Since CYPC's Listing

Operation Performance of 2016

Total assets

298.895billion RMB

Net assets

128.526billion RMB

Operating revenue

48.939billion RMB

Net profits

20.938billion RMB

Earnings per share

0.9446 RMB

Net asset per share

5.83 RMB

Credit of CYPC

CYPC completed issuance of exchangeable bonds in both USD and EUR

On November 2, 2016, CYPC successfully issued double currency exchangeable bonds in Hong Kong in the amount of USD 300,000,000 and EUR 200,000,000, and the objective shares are H shares of China Construction Bank Corporation (CCB).

The duration of the exchangeable bonds is 5 years, with zero coupon rate and zero rate of return. The convertible premium rate of USD bonds is 40%, corresponding to conversion price of HKD 7.896 for each H share of CCB; the convertible premium rate of EUR bonds is 50%, corresponding to conversion price of HKD 8.46 for each H share of CCB. Both bonds realized upper limit pricing within the range. The issuance scale, premium level and currency structure all created various records for exchangeable bonds issued by Chinese enterprises in recent years. This is also the zero interest fund raising of CYPC by efficiently using shares of CCB as the object after it receives considerable returns from investment in CCB.

Upon its first "appearance" in overseas capital markets, CYPC exchangeable bonds were oversubscribed by international investors, receiving more than 50 orders worldwide. Subscription rate of well-known overseas investors like GIC and Blackrock was 2.75 times higher than dollar bond and 3.8 times higher than Euro bond. Such strong demands fully indicate that international investors show high recognition to CYPC's credit level and development strategy.

Seven core credit highlights are the root cause for good sales of CYPC exchangeable bond and these highlights include "a leader in global hydropower industry", "an important national strategic position and favorable industry fundamentals", "the steady growth of business performance", "good credit level", "diversified financing channels and constantly improved financial structure", "transparent and high-efficiency governance structure and experienced management team", and an "eco-friendly enterprise with sustainable development".

Zero-interest funds raised in issuance of exchangeable bonds will be used to repay debts in acquisition of Meyer's offshore wind power project and to expand the company's business in overseas allocation and sales of electricity and thus realize currency matching and natural hedging between debts and assets, which is an important sign for CYPC business to go global.

Zero-interest funds raised in issuance of exchangeable bonds will be used to repay debts in acquisition of Meyer's offshore wind power project and to support expansion of the company's allocation and sales of electricity in Brazil, thus realizing currency matching and natural hedging between debts and assets. Following obtainment of huge profits through investment in China Construction Bank, CYPC further makes use of this part of stocks and goes global.

"CYPC is always an important customer of Deutsche Bank and the success of CYPC also marks the success of Deutsche Bank in energy. We will, as always, go all out for the development of CYPC. "As one of the global coordinators, Deutsche Bank, after participation in launch and issuance of CYPC exchangeable bond, thought highly of CYPC.

It is learned that CYPC serving as China Securities Regulatory Commission's preferred pilot unit in 2007 issued the first listed company bonds of China's capital market. In July 2007, CYPC obtained National Association of Securities Dealers' license on unified registration of debt financing instruments, facilitating issuance of super short-term commercial paper, commercial paper and medium term note. In October 2016, corporate bonds were issued, reaching a record low of 10-year comparable bond rate.

As an important promoter in reform of China's capital market, CYPC boats excellent credit level and favorable market image. By issuing different bonds, CYPC has been widely praised by domestic and overseas investors, constantly building "CYPC bond" brand. The issuance of exchangeable bonds marks a solid and powerful step of "CYPC bond" towards internationalization.

Fitch Ratings maintained CYPC's international credit rating of "A+"

On November 18, 2015, CYPC announced a major asset restructuring plan based on which the international credit rating agency Fitch made an analysis and deemed that the restructuring transactions did not change CYPC's rating results of "A+/ stable outlook".

Previously, Fitch Ratings upgraded CYPC's issuer default rating in long-term foreign currency and local currency from 'A-' to 'A+', with stable outlook, consistent with China's sovereign rating. Fitch also upgraded CYPC's issuer default rating in short-term foreign currency and local currency from 'F2' to 'F1'. That showed Fitch's confidence in CYPC committed to growing into a leader in hydropower development of the world and fully affirmed the company's excellent business development and good financial indicators, sending a positive signal to international capital market.

Fitch indicated that CYPC, after the major asset restructuring, would have a closer relationship with its parent company China Three Gorges Corporation (hereinafter, "CTG"). Due to major asset restructuring of CYPC, Chuanyun Company's hydropower assets were injected into CYPC, further giving play to integration effects and making contribution to CTG's asset size and cash flow as well as consolidating its relationship with the parent company CTG.

Despite completion of the transaction, CTG's shareholding ratio in CYPC dropped from 72% to 62%, without influencing CTG's absolute control of CYPC. This is consistent with the rating agency Fitch's rating methodology from the upper to the lower.

The analysis also showed that CYPC's financial conditions will continue to be improved. CYPC has exerted the role of equity financing platform again through the major asset restructuring, making CTG has abundant cash flow. By utilizing the funds raised, CTG will conduct progressive development to Jinsha River Wudongde Hydropower Station and Baihetan Hydropower Station. CTG (including CYPC) will raise cash of RMB 24.2 billion from the capital market. Influenced by this, the proportion of CTG's consolidated net debt to its free cash flow after adjustment is expected to maintain below 4 times.

In addition, CYPC, after the major asset restructuring, rose in liability scale and its debt paying ability indicators weakened in a short term and the indicators of net debt and free cash flow after adjustment increased from 3 times below to about 5 times. However, Chuanyun Company owned Xiangjiaba and Xiluodu Hydropower Station which can produce constant and stable cash flow, so financial situation of CYPC will be improved gradually. Fitch believes that the transaction still needs to be approved by relevant agencies and the management of CTG is expected to complete this in the first quarter of 2016.

According to the analysis of Fitch, CYPC CFO Xie Feng said the rating, on one hand, is a high affirmation of CYPC's management idea and performance, facilitating CYPC's enhancement of market image and increasing corporation goodwill and core competitive ability. On the other hand, the rating can reduce CYPC's financing cost in capital market. After completion of major asset restructuring of Jinsha River, CYPC's debt totaled about RMB 180 billion. CYPC actively participates in the reform of state-owned enterprises and electricity market, which also requires support of a large number of low-cost funds. It is a must to increase the capital market financing, optimize the debt structure and reduce the cost of financing. Aside from that, the rating also facilitates CYPC's positive role in international strategy of China Three Gorges Corporation. With steady progress of CYPC's internationalization strategy, demands for overseas investment will also increase and Fitch gives CYPC the credit consistent with China sovereign, which will enhance CYPC's availability in overseas financing and reduce financing cost. After the asset restructuring, CYPC will continue to realize stable operation and scientific development, and further consolidate its leading position in hydropower industry of the world through progressive development of clean energy, thus making positive contributions to China's energy and resource strategies.

It's learned that CYPC has yet to form a trust relationship with Fitch, so the rating belongs to passive rating (i.e. the rating actively conducted to enterprises by the rating agency). Fitch Rating is one of the world's three most famous rating agencies, on a par with Standard & Poor's and Moody's and is the only European credit rating agency. Headquartered in New York and London, Fitch is a credit rating company committed to providing timely, accurate and prospective rating suggestions.

CYPC won the special prize for advanced enterprise implementing excellent performance mode in national power sector

On November 28, 2014, sine CYPC won the "advanced enterprise implementing excellent performance mode in national power sector" of China Water Resource Electricity Quality Control Association Power Branch for three consecutive years, it was awarded the "2014 special prize for advanced enterprise implementing excellent performance mode in national power sector" by the association.

As an important carrier of China Three Gorges Corporation's mission of "constructing the Three Gorges and developing the Yangtze River", CYPC is the operating manager of the world's largest renewable energy base Three Gorges-Gezhouba hydro project and China's largest hydropower listed company. Currently, the company operates and manages an installed capacity of 45.495GW, of which, the installed capacity of Three Gorges and Gezhouba Hydropower Station totals 25.235GW and that of the Xiluodu and Xiangjiaba Power Stations under trustee management is 20.260GW, and there are 58 units with capacity of 700MW and above. The company strictly implements relevant national electric power production systems and rules and ensures the quality of electric energy through technical innovation and standardized management, with qualification rate of voltage and frequency meeting requirements of the power grid. The rate of contract implementation, equipment availability and qualification rate of main equipment's first operation (start) reach 100% and main reliability indices always keep the leading level among power stations of the same type in China. Relying on rapid development of CTG's hydropower development business, CYPC's such indices as main business, total profits, contribution rate of total assets and asset maintaining and increasing ratio increase year by year. Overall labor productivity leads the industry, with annual target completion rate of 100% and customer satisfaction of recent 3 years reaching 99.86%, 100% and 100% respectively. Meanwhile, the company won national AAA credit rating.

CYPC will continue adhering to the Scientific Outlook on Development and take "building the first-class listed company and establishing world-class hydropower station" as the goal, and "precise dispatching, lean operation and careful maintenance" as core management philosophy, in order to provide clean energy for society and flood protection guarantee for Yangtze River. In this way, CYPC endeavors to be a leader in the global hydroelectric power industry, which makes the country secure, shareholders satisfied and staff happy, thus boosting China Dream with high-quality electric energy and making contributions to great rejuvenation of Chinese nation.

CYPC was awarded as one of "The First Batch of AAA Credit Enterprises in the Power Industry"

On December 23, 2008, China Yangtze Power Co., Ltd. was rated as one of "The First Batch of AAA Credit Enterprises in Power Industry" by China Electricity Council.

On December 19, 2008, the release conference on evaluation results of the first batch of AAA credit enterprises was held in the Great Hall of the People in Beijing. A total of 100-odd people took part in the conference including Wang Yumin, vice-chairman of the State Electricity Regulatory Commission, Zhao Xizheng, president of China Electricity Council, and relevant government departments of National Energy Administration of China, State-owned Assets Supervision and Administration Commission (SASAC) and the Ministry of Commerce and enterprise leaders as well as relevant enterprise representatives. At the conference, leaders such as Wang Yumin, vice-chairman of the State Electricity Regulatory Commission issued certificates for representatives of those enterprises winning AAA credit enterprise in the power industry and the information was publicized through China Anti-Fraud, China Electric Power News and China Electricity Council.

Selection of AAA credit enterprises was conducted by China Electricity Council according to the General Office of the State Council's Opinions on Construction of Social Credit System, relevant requirements of the State Electricity Regulatory Commission, the Ministry of Commerce and SASAC on construction of credit systems in the industry market. After such evaluation procedures as organization application, first review of materials and onsite interview, the Working Committee on Credit System Construction in Power Industry Market approved and selected 41 enterprises with AAA credit, including 4 hydropower enterprises. The validity period for evaluation results of 3A credit enterprises is three years and review will be conducted once each year.

3A credit enterprise in the power enterprise is CYPC's another honor in credit management following its award of "people's trustworthy brand award" in 2006, which will further promote CYPC's credit system construction.


Credit Rating

In 2015, Fitch Ratings maintained CYPC's rating results of "A+/ stable outlook" ... ...


Domestic Business

CYPC has four large hydropower stations include Three Gorges, Gezhouba, Xiluodu... ...


International Business

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"Lean-Responsibility" Culture is the core of CYPC’s enterprise Culture systerm... ...


Temporary Announcement

Financial information temporary change announcement of CYPC... ...


The Three Gorges Project

The Three Gorges Hydropower Station is the largest completed hydropower station... ...


Dividend Distribution

cash bonus shall be distributed once every year, The condition for... ...