Given 2021 is the first year of the PRC government’s “14th Five-year Plan”, the Group has also commenced the formulation of its own “14th Five-Year” development plan. During the “14th Five-Year” period, the Group will continue to promote the strategy of clean, integrated, intelligent and transnational development with an aim to nurturing technology-based energy segments and further enhancing the Group’s comprehensive strengths.
In the next five years, following the Group’s clean energy projects under construction being put into operation successively, it is expected that the revenue of the Group and the proportion of clean energy installed capacity will increase significantly. In addition, as the Group has entered into strategic cooperation agreements with various local governments, it is expected that the integrated intelligent energy and high-technology energy business will also develop rapidly. Furthermore, through the management of the Entrusted Companies of CPI Holding and SPIC Overseas, the Company will accumulate more overseas management experience, which will facilitate breakthroughs in international business expansion in the future.
In 2021, the Group will prioritize the following tasks:
Unlocking potentials and enhancing efficiency to improve the overall performance. The Group will normalize its efforts to contain the pandemic and oversee the progress of safe production in strive for enhancing quality and efficiency. Strengthened efforts will be made to increase efficiency of marketing in the electricity market as well as the planning and coordination for maintaining both power generation and electricity tariffs. We will take full advantage of cascade adjusting watershed management of hydropower to realize stable hydropower generation; to promote the consumption of renewable energy and ensure full release of all the potential efficiency of newly-added renewable energy; to improve the operation efficiency of coal-fired power generating units and enhance its ability in terms of securing fuel supply and cost control; and to increase the efficiency of capital use, reduce costs of capital and secure sufficient funds through reasonable use of domestic and international financing markets.
Accelerating transformational development to develop green and low-carbon intelligent energy. Focusing on its principal business of clean energy, the Group will accelerate the increase in reserve and development of renewable energy grid parity projects by pushing forward the construction of Shanxi Datong Zero Carbon Green Energy Base and Liaoning Chaoyang Intelligent and Ecological New Energy Demonstration Base. It will also put greater efforts in the technical upgrade of coal-fired power in a bid to realize the Company’s goal for “Carbon Emission Peak” as soon as possible. Emphasis will be placed on management of carbon assets, based on which the Group will scientifically estimate and measure the carbon emission indicators of various departments, and examine the strategies for carbon trading in the future. The Group will also focus its resources on new technologies and new business models so as to actively expand the research and application of new technologies. We will gear up the development of Sichuan Deyang Combustion Engine Technological Innovation Project with a view to realizing the launch of this first national key technology demonstration project of co-generation of electricity and heat soon.
Optimizing asset structure to enhance the risk aversion ability. The Group will continue to increase the proportion of clean energy by means of self-construction, merger and acquisition, and hence increase the revenue and profit contribution from clean energy. It will gradually reduce the proportion of coal-fired power by actively introducing investors such as upstream and downstream enterprises and industrial funds, and reduce the proportion of shareholdings in coal-fired power assets by pushing forward the disposal and divestment of inefficient and non-performing assets. Meanwhile, we will conduct in-depth studies on the pilot scheme of real estate investment trusts (REITs) in the infrastructure sector initiated by the state government level and further optimize our shareholding structure by reducing the gearing ratio of traditional coal-fired power assets.
Promoting the reform of systems and mechanisms to bolster motivation for high-quality development. The Group will further promote the development of the management and control system of “Plan-Budget-Appraisal-Incentives”, improve the market-oriented operation mechanism, put more efforts in the development of human resources and optimize the incentive mechanism so as to foster corporate vitality. Furthermore, by coordinating its innovative resources, the Group will press ahead with the building of a corporation that embodies technological innovation and professional operation.
