Address by Manager

Speech by the Board Chairman


- "CYPC remembers well the duty and mission of being loyal to the Party and country, consistently prioritizes the interests of the nation, society and people, and fully implements its political, economic and social responsibilities to make greater contributions to the People's Republic of China on a new starting point."


2017, when the 19th National Congress of the Communist Party of China (CPC) was held, is a crucial year for the implementation of the 13th Five-Year Plan and also the 15th anniversary of CYPC. We followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely put into action the central Party leadership's decisions and endeavored to achieve growth, development, reform, capacity improvement and Party building. As a result, we hit record highs in the annual power generation, total profit and market capitalization of the company, stepping toward the goal of "becoming a leader in the world hydropower industry".

Keeping the mission firmly in mind and considering benefit maximization in the Yangtze River basin as our major political responsibility. We adhere to the sacred mission of "providing flood protection in the Yangtze River Basin and contributing clean energy to the society" �C on the premise of ensuring the life and property security of people in the middle and lower reaches of the Yangtze River, we closely combine safety in flood control & navigation, power generation, reservoir operation and national water resources, and run 4 mega hydropower plants well with a sense of political responsibility and mission, retaining 12.872 billion m3 of flood and replenishing 31.060 billion m3 of water for the downstream in 2017. We will set up a precise reservoir operation system based on big data, take more scientific and correct management measures and better play the role of cascaded hydropower plants in the Yangtze River basin with Three Gorges Project as focus in flood control, navigation, power generation, water replenishment, etc. to actually maximize benefits in the Yangtze River basin.

Bravely taking responsibilities and regarding reform and development as the way for CYPC to become a great enterprise. Forging ahead for 15 years, we have taken active and prudent steps in power generation management and capital operation to turn the company from operating and managing a single hydropower plant into controlling giant cascaded hydropower plants in the Yangtze River basin. We successively develop from a traditional state-owned enterprise into a modern listed company, from a follower in hydropower operation and management into a leader in the global hydropower industry. In 2017, CYPC reported record-high market capitalization of nearly RMB 380 billion, thus rated as a Chinese national sovereign-level credit unit by the world's major rating organization and becoming the most valuable listed power company in China's A-share market. We will follow the Belt and Road Initiative and CTG�� "going out" strategy, insist on promoting and leading development with reform and innovation, improve global competitiveness in safety management, core technology, brand construction, market-oriented management, etc. and boost connotative development featuring better structure, higher efficiency and strong anti-risk capability to lead the global hydropower industry to move forward.

Realizing green development and making joint efforts on protection of the Yangtze River as the cornerstone of sustainable development. We remain committed to the principle of "ecology first and green development", play a key role in protecting the Yangtze River and actively facilitate CTG�� shift from "constructing the Three Gorges Project and developing the Yangtze River�� to ��managing the Three Gorges Project and protecting the Yangtze River". In 2017, CYPC generated 210.893 TWh of clean electricity, equal to reducing the emission of carbon dioxide by 173.354 million tons, which built a green ecological defense for the Yangtze River. As the most powerful listed company along the Yangtze River, we will combine our advantages in clean energy and industry formats to build a platform for the comprehensive utilization and integrated operation of water resources in the Yangtze River basin, conduct research in green shore power projects, ship electrification, energy storage technology and other new formats, as well as make the Three Gorges dam area an ecological, green, intelligent energy demonstration base; therefore actually developing a virtuous circle where electricity generated by hydropower can be used to directly protect the Yangtze River��s ecological environment.

Working together toward the goal of helping people satisfy their yearning for a good life. CYPC follows the guiding principles from China��s President Xi Jinping's speeches on poverty relief and development, and sets a goal of helping people satisfy their yearning for a good life. In 2017, we invested altogether RMB 62.09 million in fulfilling our social responsibilities and paid RMB 16.829 billion of taxes to the state, giving the corporate development achievements back to the society and people. We will keep supporting the national economic development, improvement of people's livelihood and environmental protection, carry out the task of precise poverty relief without any reservation, and contribute to helping poverty-stricken families in the Three Gorges dam area and Jinsha River dam/reservoir area to get rid of poverty and become better off and meanwhile improving their livelihood, thereby facilitating economic development in the Yangtze River Economic Belt.

We don't simply dream about something, but act on them. In 2018, CYPC will focus on power generation safety, do well in the operation and management of 4 cascaded hydropower plants �C the Three Gorges, Gezhouba, Xiluodu and Xiangjiaba HPPs �C to maximize the comprehensive benefits of cascaded hydropower plants in the river basin, and further preparations for Wudongde and Baihetan HPPs. We will conduct research in green shore power projects, ship electrification, energy storage technology and other new formats for protection on the Yangtze River and endeavor to make breakthroughs in the ecological environmental protection industry. We will comprehensively and deeply promote reform to build up endogenous power for corporate development and provide system / mechanism guarantee for corporate sustainable development. We will still be innovation-driven, boosting the transformation and upgrading of traditional hydropower, leading the industry to develop, continuously enhancing scientific and technological innovation and training leading talents for the hydropower industry. Also, we will delve into international business development strategies for higher professional competence. We will act on the requirement for full and rigorous Party self-governance to maintain sustainable corporate development and continuously improve employees�� happiness index to make the company a stage for employees to show their talents and a house to place their emotions.

We march into the new era, start a new journey and deliver better performance. CYPC will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and endeavor to carve out a way with a stronger sense of responsibility, greater confidence and huger enthusiasm for development featuring higher quality & efficiency, better structure and full use of advantages to develop itself into a great enterprise that benefits the world. We will make new and greater contributions on building a well-off society in an all-round way and striving for the success of socialism with Chinese characteristics for a new era!

Lu Chun

April 2018

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