2012 Annual Results Announcement

Transcription

1 2012 Annual Results Announcement

2 Forward-looking Statement Disclaimer This presentation and subsequent discussion may contain forward-looking statements that involve risks and uncertainties. These statements typically use "believe," "expects," "expect," "estimate," "plans," "anticipates," "target," "may," "will," forward-looking terminology to express or may be described as possible or expected results of operations will occur in the future. You should not place undue reliance on these apply only to the date of the forwardlooking statements in this report. These forward-looking statements based on our own information from the sources which we believe is reliable. Such statements related to future events or our future financial, business or other performance and are subject to a number may cause actual results to differ materially from the uncertainties. 2

3 Table of Contents 1 The Overall State of Operation 2 Status Quo of Core Business Development 3 Future Prospects 3

4 1 The Overall State of Operation 4

5 1.1 Operating Environment Current Macro-economic Situation Current Industry Situation USA EU Emerging Markets China limited growth trend due to the sluggish recovery of the economy; the implementation of Reindustrialization inflicts greater challenges on Chinese equipment manufacturers long exists the aftermath of sovereign debt crisis; uncertainty of the economic growth prospect maintaining a certain percentage of economic growth; featured by rampant trade protectionism, aggravating trade friction and continuous geopolitical risks the 30-year rapid growth of the economy gradually flattens out; the conversion of economic growth stresses more on quality, restructuring and innovation, setting higher requirements for enterprises International Markets Domestic Markets Equipment utilization hours Presently saw a slowdown in overseas electric power investment and insufficient market needs thereof. Heightened trade protectionism in local markets (i.e. India) witnesses higher requirements for market access Oriented towards equipments with largecapacity, high-parameter, low-carbon, systemization, intellectualization and easyservice", the electric power equipment suppliers are confronting tougher requirements on technology and system integration capabilities; The flat electric power construction domestically puts limits on the increase of electric power equipments. ( 10MW ) Added Installed Capacity 5

6 1.2 Annual Operation Results Review DEC Operating Results in 2012 High-efficient and clean energy generating equipment New Energy Equipment Hydro power and environmental protection Equipment Engineering projects and services Main Operating Indexes Operating Revenue RMB Billion RMB Billion Year-on-year Increase/Decrease Of Operating Revenue 12.70% % Net Profit RMB Billion RMB Billion Year-on-year Increase/Decrease Of Net Profit 18.60% % Consolidated Gross Profit Margin 20.74% 20.84% Production Volume MW MW EPS RMB 1.53 RMB 1.09 Cash and Cash Equivalents RMB Billion RMB Billion 6

7 1.3 Achievements in Market Expansion New Orders in 2012 and Orders in Hand Chinese Markets 64% 14% 8% 14% High efficiency and clean energy generation equipment New energy equipment Hydro power and environmental protection Equipment Engineering projects and services 60% 14% 9% 17% Xianju pumped-storage projects in Zhejiang province by far the largest domestic pumped- storage hydro power units Wanzhou MW project contract in Chongqing city; Anyuan 2 660MW double reheat units E&M works contract; T/G package equipment development and procurement contract of SNPTC Largescale Advanced PWR CAP1400 Demonstration Project. International Markets New orders in recent 2 years Unit: RMB 100 Million Signed Bosnia-Herzegovina Stanari EPC contract; formally entered into Eastern European thermal power EPC market; Kazakhstan BTPP 2 660MW project boiler supply contract; New orders for export stand 12% of the total; orders in hand for export stand 19% of the total. 7

8 1.4 Accelerated Technological Innovation In 2012, RMB1.258 Billion were invested in R&D, accounting for 3.3% of the total operating revenue New Product Development Projects: 62 Scientific Research Projects:149 Patent Applications: 349 Hydro Power: accomplished conceptual design of 1000MW mixed-flow units 1000MW Thermal Power : 660MW and1000mwsupercritical and ultra-supercritical taking a lead in the world market 1000MW Gas Power : localization rate of improved HD gas turbine topped 80% and its performance matched up with national advanced level Nuclear Power : TG package of SNPTC Large-scale Advanced PWR CAP1400 demonstration projects entered into development stage of substance. Wind Power : 5.5MW offshore wind power project accomplished the trial-producing of prototypes 80% CAP MW 8

9 1.5 Steady Progress In Manufacturing and Engineering Projects Power generating equipment with total capacity of 32610MW were produced in 2012, less than predicted earlier this year. At present, the engineering projects in hand are 30, with total installed capacity of 23227MW; Throughout the year, 3 sets (900MW) of units accomplished preliminary transfer and 6 sets (2820MW) of units were combined to the grid. China Power Li Xin 2 300MW CHP project in Guangzhou city combined to the grid at full capacity, finished the preliminary transfer Indian Mettur power plant combined to the grid at full capacity 2 units of Saudi Arabian Rabigh power plant project combined to the grid at full capacity The world s first 600MW DFB unit delivered to the client Taishan nuclear power plant project, the world s biggest per-unit installed capacity with 1750MW, successfully manufactured The most sizable and weighted coal water slurry gasifier in and out of China finished its manufacturing, achieving a breakthrough of zero even in this field. Pingdingshan MW units De-NOx EPC project awarded Gold medal of National Quality Project Award " 9

10 2 Status Quo of Core Business Development 10

11 2.1 Business Segments Overall Review 2012 Revenue and Gross Profit Margin by Segment Analysis of Revenue and Gross Profit Margin by Segment With a decelerated growth of domestic economy and the electricity consumption growth rate that lower than expected, market demands are consequently cut down and multiple projects were therefore suspended or delayed in delivery. Pursuant to the project requirements, DEC conducted correspondent schedule refinement and manufacturing adjustment by extending delivery date of some projects, thereby seeing a decrease in revenue of thermal power products; Affected by a slowdown of state approval of nuclear power projects after Japan's fukushima nuclear accident, DEC suffered a year-on-year decrease of revenue in nuclear power due to suspension or defer of partial projects at hand; Inflicted by an intensifying competition in the wind power market, revenue gross profit margin in wind power products witnessed a year-on-year drop; Influenced by project implementation and product structure, the gross profit margin of engineering projects saw a marked fall; Revenue in projects for export accounts for 23% of the total operating revenue throughout the year 11

12 2.2 High-efficient and Clean Energy Generating Equipments Revenue, Breakdown and Gross Profit Margin of High Efficient and Clean Energy Generating Equipments Segment Product Development Achievements Successfully signed Jiaozuo Thermal Power Plant 660 MW projects (owned by CR Power and State Grid), as well as a patch of 1000MW high parameter units; RMB 57 Billion of thermal power project orders in hand Actively carrying out R&D in design and manufacturing of G4 nuclear power relevant equipments; Incorporating the State Key Science and Technology Project CAP1400 and developed the half-speed TG package with independent IPR; Awarded CNOOC Zhuhai CHP projects and Zhongshan Jiaming CCHP project power island equipment contract; Maintaining the leading position in the F-class gas turbine industry ; New orders in 2012 topped RMB 9 Billion. 12

13 2.3 New Energy Equipments Revenue, Breakdown and Gross Profit Margin of New Energy Equipments Segment product Product development Development achievements Achievements Acquired orders from State Key Science and Technology Project with independent IPR SNPTC Large-scale Advanced PWR CAP1400 demonstration projects; The unique manufacturer capable of producing both G3 EPR and G3 AP1000 nuclear power equipments. Oriented towards large-capacity, high-efficient, anti-typhoon offshore wind power units, accelerating R&D in design and manufacturing technology and development of 3MW and 5MW wind power units; Comprehensively upgrade product quality and after-sale services. 13

14 2.4 Hydro Power and Environmental Protection Equipments Revenue, Breakdown and E Gross Protection Profit Margin of Equipments Hydro Power and Environmental Protection Equipments Segment product Product development Development achievements Achievements Occupy 40% of domestic market share in hydro power; Enjoy distinct advantages in pumpedstorage hydro power businesses, and entered into electric machinery contract with Zhejiang Xianju 4 375MW pumped-storage hydro power project, the largest per-unit capacity in China. New orders in environmental protection equipments value RMB 1.7 Billion, exceeding year-on-year 400%; Pingdingshan MW units De- NOx EPC project awarded "Gold medal of National Quality Project Award ; Large-scale power plant boiler SCR flue gas De-NOx equipment included as one of the State Key New Products. 14

15 2.5 Engineering Projects and Services Revenue, Breakdown and Gross Profit Margin of Engineering Projects and Services co Segment product Product development Development achievements Achievements New orders of Engineering projects in 2012 value $500 Million; Amongst Middle-east, India, Pakistan, Indonesia and Vietnam over the past 5 years, 23 sets (total 4537MW) of units combined to the grid, 36 sets (total 10830MW) of units finished preliminary transfer and 15 sets (total 5073MW) of units finished final transfer to the clients. Making breakthrough in technological upgrading of power plant services, and signed complete equipment retrofitting contract for Hengyun power plant. Concluded and signed the company s first comprehensive O&M contract regarding Bosnia-Herzegovina Stanari 1X300MW thermal power plant. Prepare for the establishment of Indonesian Service Center. 15

16 2.6 Cash Dividend Plan Cash Dividend Plan in 2012 To distribute a cash dividend of RMB 1.1 per 10 shares, totaling RMB 220,424,600.00; Stock dividend and the capital reserve transferred to common shares are not to be implemented. DEC constantly attaches great importance to deliver returns to our shareholders; The company paid dividends to shareholders annually ever since its listing in 2008,. Statement of Cash Dividend Plan in 2012 Affected by the macro-economic environment in and out of China, the monetary fund balance by the end of 2012 saw a year-on-year decline of 13.38%; net cash flow from operating activities was RMB-179 Million; Meanwhile, substantial cash flow is a prerequisite for operating activities in 2013 due to large volume of production tasks in hand; To promote company development with quality and speed, and to realize long-term returns to our investors, according to the Articles of Association of the Company that stipulated the profit distributed in cash for the last three years shall not be less than 30% of the average annual distributable profit realized for the last three years, cash dividend plan is thereby formulated. The said plan is in accordance with the sustained, steady profit distribution policy of the company, conducive to reducing financial expenses and beneficial to long-term sustainable development of the company Proceeding with the operating philosophy to bring about long-term sustained returns to the investors, DEC endeavors to pay back the mass investors with better profit distribution plan under a more favorable capital position. 16

17 3 Future Prospects 17

18 3.1 Industry Development Trends 能源发展 China:sustained 十二五 and 规划 stable ( 电力装机容量 growth in energy ) development Energy Development 12 th 5-year Plan (installed power generating capacity ) Unit:10MW World:emerging markets and developing economies lead a pickup in growth By 2020, the world total installed power generating capacity is to reach 5470GW, 单位 with : 万千瓦 new orders of 830 GW(IEA); Main sources of growth comes from China, India, Indonesia, Vietnam and Brazil. Breakdown of installed power generating capacity plan Vietnam: total Installed capacity of 51GW by 2015 India: 12 th 5-year plan ( ) electrical power capacity to reach 100GW,20GW annually on average Indonesia: newly planned installed capacity in 2013 is 23.44GW Brazil: hydro power projects enjoy greater prospects 18

19 3.2 Competitive Advantages 1 2 Technology and Brand Competitiveness Top-notch Manufacturing Capability Has proprietary technology in design and manufacturing complete sets of hydro power equipments from MW unit capacity, thermal power equipments from MW unit capacity, nuclear power equipments up to 1000MW unit capacity, megawatt-level wind power equipments, heavy duty gas turbines, etc.; Has proprietary technology in power plant EPC contracting, equipment packaging and engineering ; The overall technological level matches with the first-class nationwide, while some aspects taking the lead nationally and even coming up to the world advanced level Occupies world-class manufacturing capability via advanced manufacturing technology, processes, production equipments, management medium and method of international level ; Equipped to mass-produce hydro power equipments from MW unit capacity, thermal power equipments from MW unit capacity, nuclear power equipments up to 1000MW unit capacity and megawatt-level wind power equipments; Equipped to produce E-class and F-class HD gas turbines and large-scale power plant boiler flue gas desulfurization and denitrification products, etc. 3 Fairly Complete Industrial Structure 4 Strong Market Development Capability Initially formed a multi-power product structure codeveloping hydro power, thermal power, wind power, nuclear power and gas power ; Fairly reasonable order-structure of distinctive products strengthens risk resistance capacity of the company. Technological innovation and product restructuring enables the company to maintain strong market development capability domestically, and is conducive for further expansion in overseas markets; Market expansion initiated via traditional markets (Southeast Asia, South Asia and Middle-east) to the African, South American and European markets. 19

20 3.3 Outlook for 2013 To highlight efficiency; to emphasize transformation; to manage risks; to guarantee sustainable development; The Company is expected to produce power generating equipments with total capacity of 33,000MW in Measures taken to achieve the annual target 1 Dedicated to expand markets home and abroad 2 To Constantly promote internationalization of the company 3 To motivate innovation-driven strategy 4 To improve and upgrade production and engineering management 5 To enhance the overall quality and management level 20

21 Strive to build a world-class energy equipment manufacturing enterprise with technology of international competitive edge 21