2015 interim results · 2019-01-07 · section 1 overview of 1h2015 results 4 ... section 3 1h2015...

绝密

August 2015

2015 Interim Results

1

Disclaimer

This presentation and the information contained herein does not constitute or take the form of any recommendation for the purchase or sale of any securities of China Longyuan Power Group Corporation Limited (“Longyuan” or “the Company”), and does not constitute an offer to purchase or sell any securities of the Company, nor does it constitute the foundation or basis of any contract or commitment.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither the Company nor any of the Company's advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially.

This presentation includes several forward-looking statements regarding the Company’s financial status, operating results and business, and several plans and targets of the Company’s management. These forward-looking statements include foreseen and unforeseen risks, uncertainties or other factors, and these risks, uncertainties and other factors may lead to a material difference in the actual future results and performance of the Company from the results and performance explicitly or implicitly hinted in these forward-looking statements. These forward-looking statements are based on the Company’s current and future business strategies, and assumptions made based on the political and economic environment where the Company operates in the future. The above forward-looking statements are a reflection of the views held by the Company’s management on the day the data was published. No persons shall rely on these forward-looking statements. The Company shall not ensure the consistency of the forward-looking statements with the Company’s future results or events.

The information contained in this presentation is provided to you in confidence, where the information shall not be forwarded or disclosed to any other person, and shall not be photocopied.

Important Notice：In 2014, the Company completed the acquisition of one wind power project held by China Guodian Corporation. Acquisition stated above belongs to the business merger under the same control. The Company made restatement in its consolidated financial statements, as if the business combination occurs before the start of the earliest period reported. Unless otherwise statement, the 2013 and 1H2014 financial data in this presentation are restated data.

2

Section 1 Overview of 1H2015 Results 4

Section 2 1H2015 Business Performance 9

Section 3 1H2015 Financial Performance 22

Section 4 2H2015 Outlook 30

Contents

3

Summary

In the first half of 2015, Longyuan Power comprehensively followed and

implemented the “One, Five and Five(一五五)” core strategy, steadily carried out the

“Double Enhancements(双提升)” work, adhered to “Eight Focuses (八个注重)”,

pursued “Four First-Classes (四个一流)”, strengthened operation and management,

deepened reform and innovation, and spared no effort to carry out its work. And

thus, the Group sustained a sound momentum in its operation and development

Overview of 1H2015 Results

Sector 1

2,052

2,558

1,366

2,207

0

1,000

2,000

3,000

2013 2014 1H2014 1H2015

10,963 11,361

5,652 7,094

7,525 6,156

2,999

3,056

659 690

357

391

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

2013 2014 1H2014 1H2015

Wind¹ Coal² Others³

19,147 18,207

9,008

10,541

5

2015 Interim Results Overview

Net Profit Attributable to Shareholders

Revenue (RMB MM) (RMB MM)

Notes: 1 Includes concession construction revenue 2 Includes sales of coal 3 Includes inter-segment elimination revenue 4 Unless otherwise noted, all 2013 and 1H2014 financial data in this presentation are restated data. Please refer to “Important Notice” on page 1 for details

YoY Growth for Total

YoY Growth for Wind

25.53

31.83

17.00

27.46

0

5

10

15

20

25

30

35

40

2013 2014 1H2014 1H2015

3.85 4.11

4.32

0

1

2

3

4

5

6

2013 2014 1H2015

6

2015/6/30


Earning Per Share Net Asset Per Share

(RMB Cent) (RMB Yuan)

11,910 13,543

11,910

14,568

1,875

1,875

1,875

1,875 288

280

288

280

0

4,000

8,000

12,000

16,000

20,000

2013 2014 1H2014 1H2015

14,073

15,697

14,073

16,723

7

20,611 22,131

11,243 13,358

10,330 8,958

4,392

4,555

616 615

362

269

0

6,000

12,000

18,000

24,000

30,000

36,000

2013 2014 1H2014 1H2015

31,557 31,704

15,997 18,182

2014/6/30 2015/6/30


Wind Other Renewable Energy Coal

YoY Growth for Total

YoY Growth for Wind YoY Growth for Total

YoY Growth for Wind

Consolidated Installed Capacity (MW)

Net Power Generation (GWh)

5,277

5,686

3,118

3,827

0

1,100

2,200

3,300

4,400

5,500

6,600

2013 2014 1H2014 1H2015

1,140

792

416

564

0

200

400

600

800

1,000

1,200

1,400

2013 2014 1H2014 1H2015

-254

199

93 71

(300)

(200)

(100)

0

100

200

300

2013 2014 1H2014 1H2015

8


Coal Power Operating Profit1 Wind Power Operating Profit Other Business Operating Profit (RMB MM) (RMB MM) (RMB MM)

Note: 1 Coal power operating profit including sales of electricity & heat and others, and coal sales business

1H2015 Business Performance

Sector 2

26,282 26,624

0

7,000

14,000

21,000

28,000

35,000

1H2014 1H2015

26,918 27,091

0

7,000

14,000

21,000

28,000

35,000

1H2014 1H2015

10

785

990

0

300

600

900

1,200

1H2014 1H2015

986 1,002

0

300

600

900

1,200

1H2014 1H2015

Industry Review

Power Generation of National-Scale Power Plants Power Consumption Across the Country (100 million kWh) (100 million kWh)

Wind Power Utilisation Hours Across the Country in 1H2015 Wind Power Generation Across the Country in 1H2015 (hours) (100 million kWh)

Source: “Statistics of China Power Industry from January to June 2015” issued by the China Electricity Council

With Safety Production Management being Strengthened Continuously, the Leading Position in terms of Wind Power Production Indicators was Sustained

11

Electricity Output Assessment was Detailed

• Improved the assessment system, and steered the assessment incentives toward production line

• Guided wind farms to intensify the economic operation model so as to uplift the awareness of capturing every single kWh of electricity

Multiple Measures were Made to Address

Grid Curtailment

• Spared no efforts in securing power consumption through control over both the percentage and quantity of our electricity subject to grid curtailment

• Actively developed external channels for consumption

Electricity Output Benchmarking was

Enhanced

• Made innovation in benchmarking method, which enhanced the comparability, fairness and guidance quality of benchmarking

• Strengthened the benchmarking against the leading indicators in the industry to uplift the benchmarking standard and expand the benchmarking scope

11,624

14,191

0

4,000

8,000

12,000

16,000

1H2014 1H2015

+ 2,567GWh

Region 1H2015 1H2014 YoY

Heilongjiang 1,171,125 1,041,608 12.43% Jilin 288,499 221,921 30.00% Liaoning 1,007,576 807,672 24.75% Inner Mongolia 2,644,701 2,312,323 14.37% Jiangsu 1,389,618 1,341,748 3.57% Zhejiang 128,124 107,032 19.71% Fujian 681,114 684,487 -0.49% Hainan 61,984 61,945 0.06% Gansu 853,586 942,479 -9.43% Xinjiang 1,186,029 919,104 29.04% Hebei 1,244,730 1,019,104 22.14% Yunnan 978,110 685,211 42.75% Anhui 520,721 426,965 21.96% Shandong 297,602 125,163 137.77% Tianjin 164,137 134,920 21.66% Shanxi 502,905 332,756 51.13% Ningxia 263,400 157,450 67.29% Guizhou 396,419 224,640 76.47% Shaanxi 220,686 69,054 219.58% Tibet 8,229 8,019 2.62% Chongqing 47,893 -- -- Canada 134,201 -- -- Total 14,191,391 11,623,601 22.09%

12


(GWh)

Wind Consolidated Gross Power Generation

Geographical Breakdown of Wind Consolidated Gross Power Generation (MWh)

+ 49 Hours + 4.73%

13


Heilongjiang 974 916 6.33% Jilin 733 636 15.25% Liaoning 1,005 807 24.54% Inner Mongolia 1,115 1,014 9.96% Jiangsu 1,162 1,287 -9.71% Zhejiang 799 785 1.78% Fujian 1,346 1,352 -0.44% Hainan 626 626 0.00% Gansu 770 903 -14.73% Xinjiang 997 1,180 -15.51% Hebei 1,179 1,048 12.50% Yunnan 1,770 1,660 6.63% Anhui 1,069 1,075 -0.56% Shandong 1,310 1,264 3.64% Tianjin 1,243 1,086 14.46% Shanxi 1,074 958 12.11% Ningxia 944 768 22.92% Guizhou 1,364 1,230 10.89% Shaanxi 1,125 998 12.73% Tibet 1,097 1,069 2.62% Chongqing 958 -- -- Canada 1,471 -- -- Total 1,085 1,036 4.73%


(Hours)

Wind Average Utilization Hours

Geographical Breakdown of Wind Average Utilization Hours (Hours)

1,036 1,085

0

200

400

600

800

1,000

1,200

1,400

1H2014 1H2015

+ 0.09%

(%)

14


Heilongjiang 99.18 99.10 0.08% Jilin 97.98 98.79 -0.81% Liaoning 99.00 98.70 0.30% Inner Mongolia 98.46 98.93 -0.47% Jiangsu 98.37 98.54 -0.17% Zhejiang 98.68 98.96 -0.28% Fujian 98.57 98.97 -0.40% Hainan 98.79 99.13 -0.34% Gansu 99.13 98.91 0.22% Xinjiang 99.16 97.69 1.47% Hebei 98.73 99.39 -0.66% Yunnan 99.03 97.80 1.23% Anhui 99.42 99.39 0.03% Shandong 98.97 99.24 -0.27% Tianjin 99.44 99.08 0.36% Shanxi 98.89 99.18 -0.29% Ningxia 99.18 99.44 -0.26% Guizhou 99.10 99.07 0.03% Shaanxi 99.07 98.57 0.50% Tibet 98.53 99.00 -0.47% Chongqing 98.84 -- --

Total 98.84 98.75 0.09%


Wind Power Generation Equipments Average Availability Factor

Geographical Breakdown of Wind Power Generation Equipments Average Availability Factor (%)

98.75 98.84

90

92

94

96

98

100

1H2014 1H2015

15

With the Preliminary Work being Pushed forward Steadily, the Development Quality is Elevated in a Stable Manner

151.0 GW

In the 5 Batches of Approval Plan and 1 Batch of Offshore Construction Plan, Longyuan’s Proportion Ranked 1st

Longyuan accounted to 13.2GW Accounting for

8.74% nationwide

1,557 MW

Capacity of Longyuan Listed in the 5th Batch of Approval Plan

Provinces 1 with grid curtailment

3%

Provinces 2 without grid curtailment

97%

Abundant Wind Power Project Reserves

• As of 30 June 2015, the Company had wind power projects of 6.1 GW which were approved but not yet put into operation

• The Company had wind power projects of 10.6 GW which were included in the national plan but not yet put into operation

• Accumulated wind power project pipelines amounted to 70.3GW

Innovative Cooperation and Development Model

• Deepened cooperation and made innovations in the mode of joint development, set up the first batch of provincial-level investment platform for cooperative development in Chongqing and Guangdong

• Continued to promote the cooperation with other subsidiaries of Guodian Group in regions such as Gansu, Hainan, Jiangxi and Guizhou, etc.

• Up to today, there were total of 33 projects under joint development which covered 11 provinces with gross capacity of 2.87GW

Notes: 1 Provinces include Inner Mongolia, Jilin, Heilongjiang, Liaoning and Gansu 2 Provinces exclude Inner Mongolia, Jilin, Heilongjiang, Liaoning and Gansu

16

With Effective Promotion of Project Progress, the Project Quality Continued to Improve

• In first half of 2015, taking the infrastructure “Double Enhancement” program as an opportunity, Longyuan achieved excellent performance in putting new projects into operation

• The Group witnessed the commencement of operation of its projects with capacity of over one million kW in the first half year, a record high as compared to the corresponding period of previous years in terms of project construction

• The Group strived for developing Excellence Project and Benefit Project. The 150MW Jiyangshan Wind Power Project in Shenchi, Shanxi of the Company was awarded the "Premium Quality Power Construction in China" in 2015

11,910

14,568

1,875

1,875

288

280

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1H2014 1H2015

Wind Coal Other Renewable Energy

14,073

16,723

Region 2015-6-30 2014-6-30 YoY

Heilongjiang 1,234.7 1,136.9 8.60% Jilin 447.9 348.9 28.37% Liaoning 1,003.2 1,003.2 0.00% Inner Mongolia 2,384.1 2,285.1 4.33% Jiangsu 1,578.2 1,056.8 49.34% Zhejiang 211.7 137.6 53.85% Fujian 506.1 506.1 0.00% Hainan 99.0 99.0 0.00% Gansu 1,289.8 1,039.3 24.10% Xinjiang 1,291.8 1,090.8 18.43% Hebei 1,070.1 971.1 10.19% Yunnan 619.5 528.0 17.33% Anhui 588.1 396.0 48.51% Shandong 294.7 99.0 197.68% Tianjin 132.0 132.0 0.00% Shanxi 597.0 399.0 49.62% Ningxia 376.7 277.7 35.65% Guizhou 442.0 247.5 78.59% Shaanxi 198.0 148.5 33.33% Tibet 7.5 7.5 0.00% Chongqing 49.5 -- -- Shanghai 47.5 -- -- Canada 99.1 -- -- Total 14,568.2 11,910.0 22.32%

+ 2,658 MW + 22.32%

+ 2,650 MW + 18.83%

2014/6/30 2015/6/30

17

With Effective Promotion of Project Progress, the Project Quality Continued to Improve

Consolidated Installed Capacity

(MW)

YoY Growth for Total YoY Growth for Wind

Geographical Breakdown of Wind Consolidated Installed Capacity (MW)

437

423

360

380

400

420

440

460

1H2014 1H2015

583 588

500

520

540

560

580

600

1H2014 1H2015

+ 5 RMB/MWh

- 14 RMB/MWh

18

Maintaining Steady in the Tariff

(RMB/MWh) (RMB/MWh)

Average Wind On-grid Tariff (Inc. VAT) Average Coal On-grid Tariff (Inc. VAT)

19

With the Advantage of Capital Cost being Further Reinforced, the Credit Standing Rose Significantly

• In the first half of this year, the Group keenly grasped the favorable opportunity to aggressively conduct replacement of existing loans with an aim to adjust the interest rate. Meanwhile, the Group took full advantage of its diversified financing channels

• Successfully issued a total of five tranches of ultra short-term debentures of RMB13 billion, the coupon rate of which was 23.7% lower than the interest rate for bank loans of the same term

• Successfully registered private issuance of debt financing instruments of RMB10 billion with National Association of Financial Market Institutional Investors

• Hero Asia Investment Limited, a subsidiary of the Company, successfully completed the interest rate adjustment for the existing borrowings of US$890 million, which reduced the interest rate by over 25%

• In June, Standard & Poor's raised the rating of the Group from BBB+ to A-, and Moody's also raised the rating from Baa3 to Baa1

• The improvement in credit standing will bring the Company stronger advantage in domestic and foreign capital operation and hence further reduce the cost of our debt financing

Cost of Capital at a Leading Position in the Industry

20

Notable Achievements in Technological Innovation

• The Group developed the first domestic wind power operator to initiate wind power Big Data project, and thus secured a favourable technological commanding height for future wind power development in a timely manner

• As one of the pacesetters in renewable energy, the Group co-edited the Energy Technological Innovation Programme of the National Energy Administration under the "Thirteenth Five-year Plan" as well as the proposal for a national new energy collaborative innovation community in Beijing, Tianjin and Hebei. As such, the Group aligns itself effectively with national blueprint and strategies, while further cementing its leadership and voice in domestic wind power development

• According to its needs in wind power development, construction and operation, the Group filed 9 technological projects to Guodian Group and identified 13 in-house projects, as screened out from its programme for 2015 after strict review

• In the first half of this year, the Company obtained 1 invention patent, 4 patents for utility models and 9 software copyrights

• The Group took full advantage of technology as the supporting platform. The five subsidiaries specializing in technical services, while focusing on core businesses to further strengthen service awareness, stepped up their technological endeavors in monitoring centre capacity improvement, technological supervision services, offshore wind power design consulting and EPC project development so as to upgrade technological level and business capability

21

Overseas Business Progressed in an Orderly Manner

• Benefiting from the favorable on-grid tariffs, sound wind resources, relatively low financing cost and preferential tax policy on accelerated depreciation, the Canadian Dufferin project developed by the Company achieved desirable profitability

• In the first half of 2015, generator units in wind farms operated well with 134,201MWh gross power generated and average utilization hours reaching 1,471 hours

Canadian Project

• In February 2015, the South African De Aar wind power project developed by the Company closed the financing process as required by South Africa government, and has entered the preparation stage for construction

• The project will break ground as scheduled in the second half of 2015, with capacity of 244.5MW

South African Project

1H2015 Financial Performance

Sector 3

19,147 18,207

9,008

10,541

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

2013 2014 1H2014 1H2015

10,586 11,147

5,797

6,897

57.3%

62.0% 64.5%

67.9%

50%

60%

70%

80%

90%

100%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2013 2014 1H2014 1H2015

23

1H2015 Results Overview

Adjusted EBITDA and EBITDA Margin 2

Revenue 1

(RMB MM) (RMB MM)

Notes: 1 Including concession construction revenue 2 Adjusted EBITDA excludes other net income, adds back non-recurring impairments

6,186 6,146

3,381

4,214

33.5% 34.2% 37.6%

41.5%

0%

20%

40%

60%

80%

100%

0

2,000

4,000

6,000

8,000

2013 2014 1H2014 1H2015

2,052

2,558

1,366

2,207

920

993

525

668

16.1% 19.8%

21.1%

28.3%

0%

20%

40%

60%

80%

0

1,000

2,000

3,000

4,000

2013 2014 1H2014 1H2015

2,972

3,551

1,892

2,875

24

1H2015 Results Overview

Net Profit and Profit Margin 2 Adjusted Operating Profit and Profit Margin 1

(RMB MM) (RMB MM)

Notes: 1 Adjusted operating profit excludes other net income, adds back non-recurring impairments 2 Solid line: Net profit excluding MI; dash line: MI. Net profit margin calculated based on net profit including MI, excluding concession construction revenue

10,296

11,133

5,631

6,713

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2013 2014 1H2014 1H2015

8,826

9,669

5,044

6,031

0

3,000

6,000

9,000

12,000

2013 2014 1H2014 1H2015

85.7 86.8

89.6 89.8

60

70

80

90

100

2013 2014 1H2014 1H2015

25

1H2015 Wind Power Business Results

Adjusted EBITDA2

Revenue1

Adjusted EBITDA Margin2

(RMB MM) (RMB MM) (%)

Notes: 1 Revenue excludes concession construction revenue 2 Adjusted EBITDA excludes other net income, adds back non-recurring impairments

5,029 5,311

2,925

3,638

0

1,300

2,600

3,900

5,200

6,500

2013 2014 1H2014 1H2015

48.8 47.7

51.9

54.2

30

35

40

45

50

55

60

2013 2014 1H2014 1H2015

26

1H2015 Wind Power Business Results

Adjusted Operating Profit Margin 1 Adjusted Operating Profit 1

(%) (RMB MM)

Note: 1 Adjusted operating profit excludes other net income, adds back non-recurring impairments

21.6 21.2 21.4

25.2

0

5

10

15

20

25

30

35

2013 2014 1H2014 1H2015

1,628

1,308

642

770

0

500

1,000

1,500

2,000

2013 2014 1H2014 1H2015

4,515 3,768

1,858 1,936

3,010

2,388

1,141 1,120

0

3,000

6,000

9,000

2013 2014 1H2014 1H2015

Sale of electricity & heat and other income Sale of coal

7,525

6,156

2,999 3,056

27

1H2015 Coal Power Business Results

Adjusted EBITDA2

Revenue1

Adjusted EBITDA Margin2

(RMB MM) (RMB MM) (%)

Notes: 1 Includes coal sales 2 Adjusted EBITDA excludes other net income, adds back non-recurring impairments, includes coal sales

15.1

13.1 13.3

18.1

0

4

8

12

16

20

24

2013 2014 1H2014 1H2015

1,138

808

398

553

0

200

400

600

800

1,000

1,200

1,400

2013 2014 1H2014 1H2015

28

1H2015 Coal Power Business Results

Adjusted Operating Profit Margin 1 Adjusted Operating Profit 1

(%) (RMB MM)

Note: 1 Adjusted operating profit excludes other net income, adds back non-recurring impairments, includes coal sales

2015-6-30 2014-12-31 YoY

Bank Deposit and Cash 2,789 2,389 16.7%

Short-term Borrowings 37,312 36,070 3.4%

Long-term Borrowings 33,068 33,762 - 2.1%

Total Liabilities 83,928 82,669 1.5%

Net Asset 43,186 40,849 5.7%

Total Asset 127,114 123,518 2.9%

59.14 62.28 61.02

0

30

60

90

2013 2014 1H2015

29

2015/6/30

Balance Sheet

Key Data in Balance Sheet

(RMB MM)

Note: 1 Net debt / (net debt + shareholder's equity (incl. minority interests))

Net Gearing 1

(%)

2H2015 Outlook

Sector 4

31

2H2015 Outlook

Fully intensify the “double enhancements” to improve operation of

stock assets

• Consolidate safe foundation, devote more efforts to implement safety production responsibility system

• Capture every single kWh of electricity, continuously reinforce the benchmarking of power generation

• Enhance operation and management of assets, put more efforts to raise low-cost funds

Strengthen efficiency awareness and enhance the

development quality of incremental assets

• Stress strategic guidance, stably develop quality resources

• Vigorously press ahead cooperation, expedite the implementation of "going-global" strategy

• Improve the quality of the preliminary works, strengthen project progress control, build high quality projects

Intensify reform of system and mechanism and upgrade corporate management standards

• Comprehensively consolidate basic management, and innovate in management system and mechanism

• Innovate selection and appointment mechanism, reinforce building of professional and skilled talents team

• Implement the technological innovation-driven mechanism, accelerate the construction of wind power "big data" center

Strengthen ideological and political work for

Party building and create harmonious atmosphere

• Proactively carry out education of “Three Stricts and Three Earnests”, deepen the anti-corruption initiatives

• Comprehensively promote the construction of “interior quality and exterior image”

• Enhance corporate growth vigor, and build a happy Longyuan

32

Thank You

2015 interim results · 2019-01-07 · section 1 overview of 1h2015 results 4 ... section 3 1h2015...

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