Interim Results Hong Kong 28 August 2014

Transcription

1 Interim Results 2014 Hong Kong 28 August 2014

2 1H 2014 Operational Performance Market and Policy Environment Analysis Business Prospects in 2H Adjustment of Strategy

3 1H 2014 Financial Review Operating Revenue (billion RMB) Consolidated Net Profit Attributable to Equity Holders (billion RMB) % 0.47% 1H H 2014 Total Assets (billion RMB) 1H H 2014 Debt to Asset Ratio (%) % 78.37% 78.98% 0.61% End of 2013 Mid of 2014 End of 2013 Mid of 2014 Source: Company Interim Results 2014, IFRS 3

4 Power Business: Continuous Growth in Installed Capacity and Continuous Improvement in Installed Capacity Structure In 1H 2014, the Company had 542 MW of new capacity commencing commercial operation, with continuous growth in installed capacity of the same caliber Installed capacity structure by mid 2014 Continuous growth of installed capacity in 1H % 4.23% 0.40% 60,000 50,000 40,000 30,000 20,000 10, % 1.21% ,662 29,099 29, % Installed capacity structure by end of % 0.18% 12.32% 0 Attributable Capacity(MW) Managed Capacity(MW) 83.52% End of 2013 Mid 2014 Coal-fired Power Hydropower Wind Power PV 4

5 Power Business: Slight YoY Decline in Power Generation Gross generation (Billion KWh) Coal-fired generation (Billion KWh) % 2.02% 1H H H H 2014 Hydropower generation (Billion KWh) Wind power generation (Billion KWh) % 4.07% 1H H H H

6 Power Business: Slight Decline in Unit Utilization Rate In 1H 2014, the Company s consolidated utilization hours totaled 2,300 hours, representing a YoY decrease of 121 hours, remaining higher than the national average. Compared with National Average Consolidated average unit utilization hours 2,087 National Average 213 2,300 Datang Power Average utilization hours / coal-fired unit 2,528 2, National Average Datang Power Compared with 1H , ,300 2, ,528 1H H H H

7 Power Business: Significant Profit Growth of Coal-fired Power Projects Significant YoY growth in profit of coalfired power business in 1H 2014 (Unit: billion RMB) P&L of coal-fired power companies in 1H % % 92% 1H H coal-fired power companies recorded profit 2 coal-fired power companies recorded losses 7

8 Power Business: Effective Cost Control Cost Breakdown in 1H 2014 YoY change in Unit Fuel Cost (RMB/MWh) 12.65% 14.29% 1.22% 46.34% 4.31% 17.82% 3.36% % Cost Breakdown in 1H % 1H H % 12.98% 15.52% 50.15% 5.07% 3.26% Fuel Cost Depreciation Maintenance and Repair Salaries and Welfare SG&A Financial Expense Local Government Surcharges 8

9 Power Business:Progress in Energy Saving & Emissions Reduction In the first half of the year, the Company stepped up efforts in energy conservation management and environmental protection. Unit coal consumption continued to decline. Indicators of the major pollutants discharged such as sulfur dioxide, nitrogen oxides etc., continued to improve. Various pollutant discharge indicators performed better than industry standard. Unit SO 2 emission (g/kwh) Unit NO x emission (g/kwh) H H 2014 Unit smoke ash emission (g/kwh) Unit sewage emission (g/kwh) Unit coal consumption (g/kwh) H H H

10 Power Business:Progress Achieved in Project Approval In 1H 2014, the Company obtained official approval for 3 projects with a total capacity of 1,310MW. Hebei Wei County power plant 2 600MW Ningxia Hongsibao phase I wind power project 100MW Chongqing Haokou hydropower capacity expansion project 10MW Coal-fired Hydropower Wind power 10

11 Coal Business:Decline in Production Volume upon Market Influence In the first half of 2014,the coal production of the Company s 4 partially-owned and wholly-owned coal mines amounted to million tons. Coal production volume of the Company in recent years Name of mine Coal Production Volume(million tonnes) H 2014 Yuzhou Mining Tashan Mine, Datong Coal Group Xilinhaote Mining Baoli Mine Total

12 Coal Business: Coal Procurement Structure Optimized to Reduce Costs In 1H 2014, the Company focused on consolidating and developing cooperation in demand-supply with large coal enterprises by grasping the favorable opportunities presented by relatively low coal prices. It not only adjusted the structure of coal procurement, but also reduced fuel costs. Structure of coal procurement of the Company in the first half of % 10.90% 36.66% Decrease in unit price of standard coal of the Company (Unit: RMB / ton) 41.74% Domestic spot coal Self-supplied coal Long-term contract coal Imported Coal % Structure of coal procurement of the Company in the first half of % 17.59% 32.12% 1H H % 12

13 Coal Chemical Business: Projects Progress Duolun Project Keqi Project Fuxin Project Jan Jun 2014 Produced approx. 68,200 tonnes of polypropylene, 24,400 tonnes of BTX aromatics; Completed sales of approx. 73,700 tonnes of polypropylene; Accumulated loss of RMB640 million (net profit attributable to the owners of the Company) Jan Jun 2014 Produced million standard cubic meters of natural gas; Currently still in trial production stage Jan Jun 2014 Equipment installation completed in the power, air separation, methanation and sulfur recovery zones; Equipment installation basically completed at the gasification, purification, public works and other zones 13

14 1H 2014 Operational Performance.3 Market and Policy Environment Analysis.. 15 Business Prospects in 2H Adjustment of Strategy

15 Slower Growth in Demand for Power In 1H 2014, the nationwide power demand and supply maintained overall balance; however, utilization hours of power generation facilities gradually decreased YoY Economy remained stable in general; national power consumption increased by 5.3%; year-on-year growth up by 0.2 ppt Negative growth of 12.7% YoY seen in power generation investments, among which investments in hydropower and coal-fired power generation were down 35% and 7.7% YoY, respectively, while that in wind power rose 48.3% compared with same period last year 15% 10% 5% 0% National YoY growth in power consumption by month (%) (June 3013-July 2014) In 1H 2014, utilization hours of power generation facilities nationwide was 2,087 hours, a YoY decline of 79 hours Source: The China Electricity Council 15

16 Continuous Drop in Coal Prices Coal prices saw a continuous drop in 1H 2014, and the trend is accelerating. 700 Run Chart of Qinhuangdao 5500 coal prices (30 June 2013 now)

17 1H 2014 Operational Performance..3 Market and Policy Environment Analysis 15 Business Prospects in 2H Adjustment of Strategy

18 Control Coal Price and Enhance Power Generation Volume Coal Cost Control Strive to raise the utilisation hours of coalfired generating units so that they are higher than grid average Step up monitoring over water regime, flow management and electricity sales Enhance the maintenance quality of wind power and photovoltaic facilities Further reduce power loss and proportion of power rationing Power generator #1 of Ningde Nuclear Power Project shall strive to enhance power generation volume Strategic participation in high usage client direct supply programs Improve the coal source structure and increase the proportion of more economical coal supplied by companies from coastal areas Leverage the advantage of economies of scale through centralized procurement Establish the check and inspection system for coal arriving at plants, coal plant digitalisation, and digitalisation and standardisation of labs Strive to increase power generation 18

19 Expand Financing Channels to Ensure Commencement on Schedule Financing Plans Project Commencement Plans Issuance of RMB3 bn in corporate bonds Chongqing Shizhu Coal-fired project (2x350MW) Gao Jing gas-fired project (2x480MW + 478MW) Issuance of medium-term notes Issuance of super shortterm debentures on a rolling basis Hydropower projects, e.g. power generating unit #4 of Inner Mongolia Haibowan project, Sizhuan Jinping project, Level 2 of Chongqing Qianzhangyan power station and Tibet Wangpai project; total capacity MW Wind farms, e.g. Liaoning Faku Wulongshan, Changtu Tianqiaoshan and Hebei Chongli Xiqiaoliang Phase II; total capacity 145.5MW Yunan Binchuan Laoyingyan 30MW photovoltaic project 19

20 Reorganize Coal-to-chemical and Related Businesses On 7 July 2014, the Company entered into the Framework Agreement for Reorganization of Coal-to-chemical Segment and Related Projects with China Reform Holdings Scope of reorganization includes: Datang Inner Mongolia Duolun Coal Chemical Company Limited, Inner Mongolia Datang International Keshiketeng Qi Coal-based Gas Company Limited, Liaoning Datang International Fuxin Coal-to-gas Company Ltd, Datang Hulunbeier Chemical Fertiliser Co., Ltd., Inner Mongolia Datang International Xilinhaote Mining Co., Ltd. and the respective ancillary facilities and affiliated projects Form of reorganization: Through cooperation in reorganization or acquisition of equity interests, China Reform Corporation will acquire assets or equity interests in the coal-tochemical segment and related projects of the Company 20

21 1H 2014 Operational Performance..3 Market and Policy Environment analysis 15 Business Prospects in 2H Adjustment of Strategy

22 Optimize Business Structure and Consolidate Power Generation Edge The Company is going to set coal-fired power generation as development focus in the future following efficiency of coal-fired power generation saw continuous improvement. Hebei Yu County Project 2 x 600MW Inner Mongolia Tuoketuo Project Phase V 2 x 66MW Jiangsu Lvsigang Project Phase II 2 x 1,260MW Ningxia Pingluo Project 2 1,000MW Zhejiang Wushashan Project Phase II 2 x 1,000MW Guangdong Leizhou Project 2 1,000MW Guangdong Chaozhou Project Phase III 2 x 1,000MW Jiangxi Fuzhou Project 2 1,000MW Projects under construction Projects going to be approved Preliminary projects 22

23 Thank You! 23