Address from Board Chairman  

Reform Promotes Transformation, Innovation Powers Future

In 2015, YUDEAN Group entered the successful ending year for the implementation of the “Twelfth Five-year Plan”. Facing more complicated external economic environment and tedious work of reform and development, YUDEAN kept all people together to strive and struggle as a whole, grasped the opportunities, improved the innovation awareness, persisted in green development and basically fulfilled the objectives of the “Twelfth Five-year” plan, so as to make positive contributions to the steady and rapid economic development of Guangdong Province.

In 2015, we extensively implemented the new Production Safety Law, fulfilled the responsibilities of the enterprise as a safety subject, and further solidified the foundation for the management of production safety. Also, we carried out the investigation and treatment of hidden problems in an all-round way, improved the emergency response plan system, and successfully guaranteed the power supply for important activities including the 70th Anniversary of the Victory of the War of Resistance and “Two Sessions”. In general, we achieved the steady and reliable safety situation in the whole year.

In 2015, we kept market-oriented and effectiveness-centered to actively cope with the adverse environment with insufficient demand for power supply and worsening market competition, and guaranteed the steady progress of business operation through broadening sources of income and reducing expenditure, and improving the quality and efficiency. To actively face the challenges in deepening the reform of electric power system, we established a specialized electric power sales company to explore the electric power sales business model. The Group was listed as an excellent performer in the business performance evaluation for fourteen consecutive years through establishing the cost and expense control system, creating the innovative mechanism of coal purchase via bid, and effectively controlling the operating cost.

In 2015, we optimized the industrial structure in an all-round way, and actively transformed the mode of development, to vitalize the development of enterprise. We accelerated the development of new energy and obtained the new energy units in production and under construction with the total installed capacity exceeding 1,000MW for the first time; and cooperated with the enterprises owned by provincial government to innovate the development and construction model for new energy. We actively responded to the national strategic arrangement of “One Belt and One Road”, and explored the overseas power supply projects. While actively diversifying the businesses, we had developed and steadily pushed forward the projects of natural gas, shipping, coal, water supply and environmental protection, etc.

In 2015, we actively coped with the challenges in resource and environment, dedicated ourselves to creating green energy and practically performed our social responsibility. We released the Upgrade and Reconstruction Program (2015-2020) for Energy Conservation and Emission Reduction of Coal-fired Power Plants of YUDEAN Group, further promoted the work of energy conservation and emission reduction including denitration, desulfurization and comprehensive upgrade and reconstruction, and realized the desulfurization and denitration in all coal-fired power plants of the Group, so as to facilitate the green and low-carbon development of Guangdong.
In 2015, we further promoted reform and innovation, and facilitated the transformation and upgrade of enterprise. We gradually released the management authorities to three enterprises involved in this experiment, including Yangjiang Port Co., Ltd., and further vitalized the operation expansively by introducing strategic investors, acquiring and integrating regional power supply projects and taking other measures; changed the management and control model of 4 new energy enterprises including Guangdong Provincial Wind Power Co., Ltd., to speed up the development of clean energy business; strengthened the construction of “Three Importance and One Greatness” policy-making management system and steadily improved the management and control level of the Group to guarantee its healthy development.

In 2015, we created a decent and honest work atmosphere and developed the harmonious and stable YUDEAN in an all-round way.

The profound knowledge must be attributed to assiduity, while more gains come from more efforts. Looking back at what we achieved in 2015, we must thank the provincial committee, the provincial government and State-owned Assets Supervision and Administration Commission, the People’s Government of Guangdong Province for their correct guidance, thank our shareholders for their great support, thank various circles of society for their care and help, and thank all YUDEAN people for their wisdoms and dedications. Hence, I would like to express our greatest respect and sincerest gratitude to all of them!

All march forward as a whole and overcome troubles and setbacks proudly. The year of 2016 welcomes the arrival of the “Thirteenth Five-year Plan” and is also crucial to the Group’s deepening reform and speeding up transformation. We will keep the spirit of fearing neither hardship nor danger and exploring bravely, and continue facing the practical challenges including surplus production capacity in power generation, increasing pressure from market adjustment, tremendous tasks of emission reduction and worsening risks in operation. We will embrace more liberated mind, more scientific method, more solid style, and more determined heart to optimize strategic arrangement, solidify the basis for development, improve the management system, and strictly control the operational risks, so as to realize better and faster development of enterprise. We will rely on the wisdoms and efforts of all YUDEAN people to develop a large national energy enterprise group integrating traditional energy with new energy, having outstanding competitive power and ranking high among national energy enterprises, and bring YUDEAN to a new stage of development, so as to make more contributions to realizing harmonious YUDEAN, happy Guangdong and beautiful China!

Li Zhuoxian

Chairman of YUDEAN Group