2016 was the first year of the “13th Five-year Plan” as well as an extraordinary year in the development history of China Yangtze Power Co. Ltd. (“CYPC”, or the “Company”). With the continuous promotion of electric power system reform and the sharp contradiction between supply and demand in the power market, the Company has overcome the difficulties and made great achievement while maintaining the growth pace and development plan. As of December 31, 2016, the installed capacity and the total assets of the Company were 45,495 MW and RMB298.895 billion respectively. In 2016, the Company realized power generation of 206.06 TWh. The realized operation income was RMB48.939 billion and net profit attributable to the shareholders reached RMB20.781 billion with EPS of RMB0.9446.
The major assets restructuring of Jinshajiang River basin power generation assets successfully completed this year. The market value, total assets, installed capacity and net profit of the Company recorded substantial growth while the business scale and operating efficiency realized leaping development. Our assets quality and installed capacity were in the leading position in international hydropower industry. In the domestic capital market, we were the first entity making the commitment of high proportion of cash dividend for the next decade, establishing a paradigm for value investment. Power generation segment kept in good condition. The annual power generation of four cascaded hydropower plants owned by the Company exceeded 200 TWh. The cascaded reservoirs group maximized the comprehensive utilization rate of hydro energy through an information sharing platform and joint coordination for optimization, which remarkably leveraged the comprehensive benefits of joint coordination in flood control, power generation, shipping and ecology by the cascaded hydropower plants. Three Gorges Hydropower Plant (TGP) has generated electric power in excess of 1,000 TWh in accumulation and hence became the first hydropower plant with safe, stable and efficient operation in China for 14 consecutive years. Power distribution and sales business made progress. This was a significant strategic layout made in response to electric power system reform, creation of an industrial chain consisting of “power generation, distribution and sales” and development of new profit growth opportunities. This segment also complemented and supported the hydropower consumption business of the Company. We also made stable progression in international business as the Company successfully issued USD 300 million and Euro 200 million dual-tranche zero-coupon bonds and acquired 30% equity in Germany Meerwind Offshore Wind Farm Project, marking our first direct investment and financing activities in overseas capital market. 2017 is an important year for the Company to fully implement the “13th Five-year Plan”, as well as a year of strengthening the structural reform of the supply-side in the country. Electric power system reform will develop vertically and horizontally. The international and domestic economic situations are complicated with both opportunities and challenges ahead. The Company will continue to pursue the vision of “becoming a leader in international hydropower industry” and maintain the general principle of making stable progress. Driven by reform and development, we will take serving the national strategy as our mission with market-oriented attitude and well coordinate the production, operation and reform and development with the “13th Five-year Plan” as the main guidance. In addition, the Company will endeavor to: improve and optimize the power generation mode of cascaded hydropower plant group in the basin, consolidate the joint coordination mechanism of the four plants, continue to enhance the production efficiency, become a corporation with the nature of intrinsic safety, continue to realize safe production, actively participate in the power system reform, build a landscape in response to the fierce competition of the power market in the long run, dedicate to begin capital operation and expedite the development of emerging business, continue to strengthen the core competitiveness of the Company, realize sustainable development of the Company, contribute clean energy to the society and create satisfactory return for shareholders.
Lu Chun, Board Chairman