Overview

Energy Saving and Emission Reduction

The Group has always been placing a great emphasis on environmental protection from the perspective of sustainable corporate development, vigorously promoting energy saving and emission reduction, conscientiously fulfilling its social responsibilities and actively responding to global climate change.

In active response to the policy of "Action Plan of the Upgrade and Renovation of Energy Saving and Emission Reduction of Coal-fired Units (2014–2020) ( 煤電節能減排升級與改造行動計劃 (2014–2020 年))" promulgated by the PRC government, the Group has strengthened the environmental control and rectification measures for its coal-fired power generating units. Currently, more than 95% of the operating coal-fired power generating units have met the standards of ultra-low-emission.

In 2018, the operational ratio of desulphurization facilities for the coal-fired power generating units of the Group was 100% (2017: 100%), and the efficiency ratio of desulphurization was 99.20% (2017: 98.42%); the operational ratio of denitration facilities reached 100% (2017: 100%) and the efficiency ratio of denitration reached 91.02% (2017: 92.98%).

During the year under review, the environmental protection indicators for coal-fired power generating units were further improved:

  • the emission rate of sulphur dioxide (SO2) at 0.056g/kWh, representing a decrease of 0.007g/kWh as compared with the previous year;

  • the emission rate of nitrogen oxide (NOx) at 0.097g/kWh, representing an increase of 0.002g/kWh as compared with the previous year; and

  • the emission rate of flue gas and dusts at 0.008g/kWh, representing a decrease of 0.005g/kWh as compared with the previous year.


To prevent pollutants from exceeding the emission standards at source, the Group has also incorporated concepts and requirements of social responsibilities in the management of suppliers, and clearly stipulated that the materials must meet the standards of the relevant national environmental protection laws while signing material purchase contracts.

During the year under review, all the power plants over which the Group has operational control complied with the relevant PRC environmental protection regulations. No fines or charges were imposed due to violation of regulations.

Operational Safety

The Group's employees are equipped with labor tools and labor protection gears that are compliant with safety standards, while a variety of safety knowledge, safety skills training, as well as emergency training and drills have been arranged, as the Group continues to improve its conditions for operations in strict compliance with the Work Safety Law of the People's Republic of China and the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and other laws and regulations relating to safety and hygiene.

In order to further enhance its core competitiveness and promote sustainable development, the Group has established the accredited Quality, Occupational Health and Safety, and Environment (QHSE) "three standards" management system in line with international standards, which plays an important role in enhancing management quality and promoting transformational development.

In 2018, no material accident in relation to employees, facilities and environmental protection occurred in the Group.

During the year under review, all operating power plants over which the Group has operational control complied with the relevant PRC production safety regulations. No fines or charges were imposed due to violation of regulations.

Employees and Remuneration Policies

As at 31 December 2018, the Group had a total of 10,269 (31 December 2017: 9,780) full-time employees. The increase in the number of employees was due to the consolidation of the newly-acquired project companies.

The Group has put great emphasis on the establishment of the performance evaluation as well as reswarding and punishment mechanism for all employees. It determines the emoluments of its directors and employees based on their respective performance, working experience, duties and market rates. The Group has also implemented an incentive policy linking emoluments with performance.

The Group has attached importance to the learning and training of employees and to the communication between employees of different positions. It has improve the professional and technical capabilities and overall competence of its employees on an on-going basis, so as to satisfy the needs of its expanding businesses.

During the year under review, all business units over which the Group has operational controls complied with the local labor laws. No fines or charges were imposed due to violation of regulations.

Relationships with Customers and Suppliers

We regard customers and suppliers as very important stakeholders. The Group has been maintaining good communication and establishing a long-term and stable cooperative relationship with them. During the year ended 31 December 2018, there were no significant disputes with customers and suppliers.

Relationship with customers

The Group is an independent power producer. Because of the special nature of electricity production and sales, its major customers are regional and provincial power grid companies, through which it sells the electricity generated by its power plants to power users and settles the transactions. The Group has been maintaining longterm and good customer relationships with the power grid companies in various locations where its power plants locate. During the year under review, the aggregate turnover attributable to the Group's five largest customers (regional power grid companies) accounted for 78.39% of the Group's total turnover.

In recent years, with the PRC government moving forward the system reform in the power industry, the Group has promoted the customer-centered philosophy and actively participated in market-oriented direct electricity transactions. It has also established and invested in electricity sales and distribution companies, and developed distributed and integrated intelligent energy projects. In the meantime, the Group has made direct connections with power users and maintained good cooperation with them by developing and providing value-added services. Due to the gradual advancement of market-oriented reform in the power industry, the share of open market transactions, such as direct power supply, will further increase.

Relationship with suppliers

The Group's major suppliers are coal production and sales enterprises, while its coal-fired power plants purchase the majority of coal from neighboring coal production enterprises primarily under long-term contracts. The Group has been maintaining long-term and good relationships with major suppliers in order to ensure efficient coal procurement. During the year under review, the aggregate purchases from the Group's five largest suppliers (for production materials like coal and consumables) accounted for approximately 75.42% of the Group's total purchases. The Group will continue to explore different procurement channels to ensure the stability of coal supply.

The Group strives to establish fair, just and stable mid-to-long-term cooperation with suppliers, strictly fulfills the contractual agreements, respects and treats each supplier equally. It has formulated a stringent and standardized supplier selection and management system, established a supplier review team and conducted strict reviews according to the integrity, quality assurance, punctuality of supply, price reasonableness, etc., so as to select more competent and reputable suppliers to jointly maintain a healthy and orderly market environment.

The Group also incorporates concepts and requirements of social responsibilities in supplier management, and clearly stipulates that materials must meet the relevant national environmental protection laws and standards while signing purchase contracts, in order to prevent pollutants from exceeding the emission standards at source.