In recent years, according to the national energy policy, Guodian Power has actively adjusted its development strategy, vigorously implemented the “New Energy Leads Enterprises in Transition and Achieved Green Development” strategy, and on the basis of continuously optimizing the thermal power structure, vigorously promoted new energy sources such as wind power, hydropower and solar energy. With the development of coal resources, the company’s comprehensive competitiveness and anti-risk capabilities have been continuously enhanced. At present Guodian Electric is carrying out the issuance of RMB 5.5 billion convertible bonds, and investors are very concerned about the issuance of convertible bonds. The author interviewed Mr. Feng Shuchen, General Manager of Guodian Power, on issues of concern to the majority of investors. He gave detailed answers to relevant questions.

Author: Feng, hello! At present, Guodian Electric's issuance of convertible bonds is ongoing. The majority of investors want to have a better understanding of Guodian Power. Please briefly introduce the company's basic situation.

Feng Shuchen: Guodian Power Development Co., Ltd. (stock code 600795) is a national listed power generation company controlled by China Guodian Corporation, a top 500 national enterprise, and a top 250 global energy company. The company was formally established in 1992 with the approval of the Economic System Reform Committee of Liaoning Province. It was listed on the Shanghai Stock Exchange on March 18, 1997 and entered China Guodian Corporation at the end of 2002.

Since its listing, Guodian Power has always adhered to standardized operation and sound management, actively participated in the capital market, strengthened capital strength, expanded business scale, and achieved sustainable development. As of the end of June 2011, the company had 61 directly-affiliated and controlled enterprises and 21 equity-holding companies. The industry involved electric power, coal, coal chemical industry, finance, high-tech and many other industries. Its subsidiaries were distributed in 23 provinces, cities and autonomous regions across the country. . As of the end of March 2011, the total assets of the company reached 156.6 billion yuan. The company has been rated as the listed company with the most development potential for many years. It has been listed in the Shanghai 180 Index (5901.705, -110.05, -1.83%), the CITIC S&P 50 Index and the 300 Index. It is among the best in the domestic A-share stock market comprehensive indicators. Excellent blue chip position. In recent years, the company has won the 2007 China Top 100 Listed Companies, National Advanced Unit for Electric Power Reliability Management, 2008 Corporate Credit Rating AAA Grade Credit Enterprise, 2009 Annual 8th China Corporate Governance Forum Listed Company Information Disclosure Award, 2009 Capital Civilized units and other honorary titles, in 2011 by the All-China Federation of Trade Union awarded the national "May 1 Labor Award."

The author: In recent years, Guodian Power has vigorously implemented the “New Energy Leads Enterprises in Transition and Achieved Green Development” strategy. Will you talk about Guodian Power's obvious competitive advantages?

Feng Shuchen: As one of the largest independent power generation listed companies in China, the company has a leading position in the market with excellent equipment, advanced management, and solid strength. The company is actively promoting the strategy of “Strengthening the development of new energy and building innovative enterprises”, and adopting the general idea of ​​“optimizing the development of thermal power, vigorously developing wind power, hydropower, and coal industries, optimizing solar energy development, steadily developing coal chemical industry, and actively developing nuclear power”. Scale expansion further strengthens the company's strength, further enhances the company's asset quality through structural optimization, reduces the company's power generation cost through cost control, and continuously expands the company's new market competition advantages. Specifically embodied in:

Location and cost advantages increase. The company's current power plants are located in the Northeast, East China, North China, Southwest, and Northwest China, and the distribution of power generation assets is reasonable. The power plants are basically distributed in the pits or load centers, or in resource-rich areas, or in economically developed areas, with obvious regional advantages, and the rational distribution of assets is conducive to reducing the risk of over-concentration in operating areas. The company's main thermal power company is located in Datong City, Shanxi Province, Shizuishan City, Ningxia Hui Autonomous Region and Hangkou Power Plant in Ordos, Inner Mongolia Autonomous Region (17.21, -0.37, -2.10%). The coal supply can be guaranteed and the transportation cost is low; some are located at long With the triangular load center, the power demand is very strong, and the social power consumption is growing rapidly. The fuel mainly depends on major coal distribution bases such as the Qinhuangdao Port, and through sea transportation, the coal supply is guaranteed, and the transportation cost is relatively low. The company's hydropower projects are mainly located in the Sichuan Dadu River Basin, Xinjiang Ili Kashi River and Dahe River Basin, etc. The hydropower resources are abundant, the cascade development of the river basin, unified scheduling, low cost of power generation.

The industrial structure continues to be optimized. As of June 30, 2011, the company’s installed capacity for power generation was 30,509,800 kilowatts, of which the consolidated installed capacity of thermal power, hydropower, and wind power was 2237.40 million kilowatts, 6.8528 million kilowatts, 1.359 million kilowatts, and the ratio of thermal power, hydropower, and wind power was approximately 16.5:5:1, hydropower and wind power capacity accounted for approximately 27% of the total capacity. The proportion of clean energy was the highest among the top five A-share listed companies. With the Dadu River cascade hydropower projects, Xinjiang company hydropower projects and a large number of wind power projects completed and put into operation one after another, the ratio of clean renewable energy and thermal power will be more reasonable, which will effectively reduce the company's operating risks and the company's industrial structure will be further optimized.

Coal development has begun to take shape. With the continuous expansion of the company's installed capacity, the company adjusted its development strategy at an appropriate time, actively developed upstream and downstream industries, and increased the development and control of coal resources. The company has invested in the development of coal projects in the Inner Mongolia Autonomous Region and Shanxi Province, and has mastered 2.329 billion tons of coal resources, and the production capacity of the participating coal mines has reached 10 million tons/year, and the investment results are good; the company’s coal development work in Xinjiang has also achieved substantial progress. The company's participation in coal resources investment can not only reduce the impact of rising coal prices on the company's power generation costs, but also provide support for the company's power plant coal.

The unit equipment is advanced and efficient. The company's 300,000-kilowatt and above fire-engine assembly capacity accounted for 87.79% of the company's thermal power generation capacity, 600,000 kilowatts and above of thermal power plants accounted for 53.14% of the company's thermal power holdings, and 9 of the million-kilowatt units invested by the company When it is put into production, the newly-built and planned thermal power projects of the company are all high-parameter and large-capacity units with a capacity of 350,000 kilowatts or more, and have good environmental protection performance and index parameters. As the new projects are put into operation one after another, the proportion of the company's large units will be further increased. .

Subsequent project reserves are adequate. The company actively promotes the development of quality projects. At present, it has reserved 20 million kilowatts of thermal power projects, 30 million kilowatts of wind power, 10 million kilowatts of hydropower, 2.2 million kilowatts of solar energy projects, and nearly 70% of new energy and clean energy. In the next few years, with the successive launch of new energy projects, large-scale coal-electricity integration projects and river basin cascade hydropower development projects, the company's profitability will be further enhanced, providing continuous momentum for the company's asset size and profit growth.

Controlling shareholders have strong support. In the development process, the company received strong support from the controlling shareholder, China Guodian. In April 2010, China State Power confirmed that the company will use the company as an integrated platform for its thermal power and hydropower business. Through asset mergers and acquisitions, restructuring, etc., China Guodian’s assets for thermal power and hydropower business (excluding China Guodian’s direct holding of listed companies in addition to the company’s The company's related assets, business and equity are injected into the company, bringing the company faced with unprecedented historical development opportunities.

Advanced enterprise management. The company has extensive experience in the management and operation of large-scale power generation enterprises. After years of practice, it has established a complete system of regulations, management standards, and production safety management system. Since the establishment of the company, no major safety accidents have occurred. The company's profitability has always been in the same category in the country. The forefront of power generation companies. Since the beginning of this year, Guodian Power has vigorously promoted management innovation, vigorously carried out the construction of a comprehensively-operated power plant within the company's scope, and effectively improved the level of benefits; comprehensively carried out benchmarking management, implemented full-scale professional and full-process benchmarking against domestic and foreign industries, and continuously managed. Improve; In-depth performance of all staff performance assessment, the company's senior management personnel to the grass-roots staff were all included in the assessment system, formed an effective incentive and assessment of the entire staff, and fully stimulated the company's creative energy.

The author: Investors are very concerned about the use of this raised funds. Would you please briefly introduce the status of the funds raised in this fundraising project?

Feng Shuchen: The issuance of convertible bonds is an important measure to accelerate the development of Guodian Power's use of the capital market**. The raised funds will be fully invested in the development of hydropower and wind power projects of the company. The investment projects meet the requirements of the national energy policy and both have good resource endowments. The development prospects and investment income are conducive to promoting the healthy and rapid development of the company, expanding the company's main business scale, improving the company's power supply structure and asset distribution, and improving the company's market competitiveness.

The funds raised by the company will be used for the development of 5 hydropower projects and 11 wind power projects. The five hydropower projects are: Dadushan Hydropower Station Project in Dadu River, Xinjiang, Xinjiang Nileke I Hydropower Station in Yili, Xinjiang, Ili Suricat Hydropower Station in Xinjiang, Talimdha Hydropower Station in Ili, Xinjiang and Turpan River in Turpan, Xinjiang Cascade Hydropower Projects. Among them, the Dadushan Dagangshan Hydropower Project in Sichuan Province is located in the middle reaches of the mainstream of the Dadu River Basin and has a total installed capacity of 2.6 million kilowatts. It is one of the backbone hydropower stations of the Dadu River Hydropower Station. After the project is put into operation, it can meet the electricity demand of Sichuan Province, and The implementation of the West-to-East power transmission to optimize the allocation of resources within the Central China and East China regions has resulted in good project investment returns. The Ili Nileke I Hydropower Project in Xinjiang, the Suricat Hydropower Station Project, and the Tarad Sayi Hydropower Station are all projects in the Xinjiang Ili River Basin with a total installed capacity of 380,000 kilowatts. The investment and construction of the three projects will be conducive to the adjustment of northern Xinjiang. The grid power supply structure enables the transformation of energy advantages to promote the further economic and social development in northern Xinjiang, and is conducive to accelerating the development of the Ishi Kashi River to enrich the hydropower resources, promote the construction of hydropower bases, and bring into play the benefits of the Jilintai I water conservancy hub, realizing the reach of the middle reaches of the Kashgar River. Water elevator grade rolling development. The Turpan River cascade hydropower station project in Xinjiang includes an expansion power station and 7 new power stations with a total installed capacity of 42,000 kilowatts, which can increase the power supply capacity of the Turpan power grid, and better meet the development of the power grid and the power users' needs for electricity. . All four hydropower projects in Xinjiang are expected to be put into operation in 2012 and have good investment returns. The 11 wind power projects are: Phase 1 and 2 projects of Yanchi Qingshan Wind Farm in Ningxia, Phase 1 of the Shibanquan wind farm at Hongsibao, Phase I, II and III projects of Qingtongxia Niuthoushan Wind Farm, and Daqingbeishan of Huachuan, Heilongjiang Wind Farm Phase II Project, Liaoning Tieling Taizishan Wind Farm Project; Shanxi Youyu Gaojiabao Phase II Wind Farm Project; Shandong Wendeng Zijinshan Wind Farm Project, Weihai Yamagyu Wind Farm Project. The investment and construction of these wind power projects will help improve regional energy structure, promote regional economic development, and improve the ecological environment. At the same time, wind power, as a green energy advocated by the country, has good development prospects and good investment returns.

The author: Guodian Power is one of the largest listed power generation companies in the country. The majority of investors are very concerned about the future development of the company. Will you talk about Guodian Power's development ideas for the next five years?

Feng Shuchen: As a national electric power listed company, Guodian Power always adheres to the concept of “scientific development”. It actively works hard, works hard, maintains a clear head and guards against various risks, ensuring that the development of Guodian Power conforms to the national industrial policy and complies with The direction of development of the energy industry. During the “Twelfth Five-Year Plan” period, Guodian Power will follow the development roadmap of “optimizing the development of thermal power, vigorously developing hydropower, wind power, and coal industries, optimizing the development of solar energy, steadily developing coal chemical industry, and actively developing nuclear power”, highlighting efficiency orientation, and stressing the quality of development. To take all factors into consideration, coordinate development, actively develop projects that meet the company's transformation strategy, continue to enhance the company's overall strength, and achieve the company's sustainable development. In thermal power, focusing on the resource center area, load center area, and the UHV channel, we will speed up the development and construction of 600,000 kilowatts and above of supercritical, ultra-supercritical units and 350,000 kilowatts of supercritical thermal power units. At the end of the "Twelfth Five-year Plan," The company's capacity of over 300,000 kilowatts accounts for more than 90% of the thermal power capacity. In terms of hydropower, Dadu River will focus on supporting the development of hydropower projects in the river basin, strengthening the development of small and medium-sized hydropower projects, and expanding the scale of hydropower. In terms of wind power, while stepping up efforts to develop decentralized wind farms, we will vigorously promote the development of large-scale wind farms and offshore wind power and accelerate the conversion of reserve resources. In the coal and coal chemical industry, it is actively occupying coal resources, focusing on the development of coal resources projects with good resource quality, good development conditions, high return on investment, and favorable for solving coal used by regional power plants, and transforming the Company’s advantages in coal resources into production capacity as soon as possible. With its industrial and technological advantages, Inlite (16.80, -0.65, -3.72%) actively promotes the development and construction of coal chemical and coal gas projects. In terms of solar energy, it closely follows national policies, focuses on accelerating resource reserves in regions rich in light resources, and does a good job in the development of large-scale photovoltaic projects. By the end of the “Twelfth Five-Year Plan” period, irrespective of China Guodian’s plan of paying attention to the company and Xinjiang’s new regional development plan that entered the company last year, the company’s consolidated installed capacity will exceed 60 million kilowatts, of which thermal power accounted for 59% of the installed capacity, hydropower, The proportion of new energy and renewable energy such as wind power and solar energy will account for 41% of the total installed capacity; the coal resources will exceed 5 billion tons, and the controlled coal production capacity will be 66 million tons per year. Through these five years of unremitting efforts, we must achieve remarkable results in promoting the transformation of the company. The overall strength has been significantly enhanced, the industrial structure has become more reasonable, the ability to resist risks has been further improved, and the achievements in energy saving and environmental protection have been remarkable. We have truly turned our company into a leading domestic and first-class international company. Power listed companies.