As a leader in technological innovation and institutional innovation, the Group is proactively implementing its transformation and development strategy. We are striving to become the world’s leading clean energy enterprise by focusing on establishing comprehensive energy projects and predominantly acquiring clean energy companies.
In order to accelerate the transformation towards a clean energy company, the Company has completed its acquisition of clean energy assets in Guangxi, Shandong, Anhui and Hubei from the parent companies in 2018.
In the future, the Company will continue to optimize its asset structure and enhance its market competitiveness. Currently, apart from the information already disclosed by the Company, there is no other disclosable information in relation to the acquisition of the assets from the parent companies.
In 2018, a number of coal-fired power plants and clean energy power plants of the Group participated in direct power supply transactions. The volume of electricity sold through direct power supply transactions amounted to 23,273,641MWh. For those power plants of the Group which participated in direct power supply transactions, the average post-tax tariff of coal-fired power was at a discount of approximately 8.02% as compared with the average post-tax benchmark on-grid tariff, while the average post-tax tariff of hydropower was at a discount of approximately 1.03% as compared with the average post-tax benchmark on-grid tariff.
In 2019, China Electricity Council anticipated that the growth of national total electricity consumption will slightly slow down, with a year-on-year increase of approximately 5.5% and the newly-installed capacity nationwide is expected to reach 110 million kW, hence, the overall national supply and demand of electricity will remain balanced. Nevertheless, the power supply during the peak hours of electricity consumption will remain tight in certain regions. In conclusion, the Group expects that the fluctuation of utilization hours will be relatively stable in 2019.
In 2019, with the weakening effect of cutting overcapacity of coal production and the stable growth of advanced production capacity, the national coal output is expected to increase steadily, and the demand for coal will maintain a steady increase. The national regulatory policies will play an active role in leading a stable operation of the coal market, resulting in a relatively loose balance of supply and demand for coal. The Group expects that coal price will remain at a high level in general for 2019, albeit a slight decrease and with less volatility.
In 2018, the capital expenditure of the Group for the year was RMB11,563,878,000. Among which, the capital expenditure for the coal-fired power segment was RMB3,730,637,000, which was mainly used for the construction of new environmental friendly coal-fired power generating units with large capacity and technical upgrade for the existing power generating units. Meanwhile, the capital expenditure for the clean energy segment, including newly acquired assets, was RMB7,672,993,000, which was mainly used for the construction of new power plants and power stations.
In 2019, the Group has a planned capital expenditure of approximately RMB10,000,000,000. Of which, the expected expenditures for coal-fired power segment and clean energy segment will be approximately RMB3,600,000,000 and approximately RMB6,400,000,000, respectively, which will be mainly used for the construction of new power generating units and technical upgrade for the existing power generating units.
The Company announced its revised dividend policy in January 2019, which increased the amount of dividends from not less than 25% of the profit attributable to owners of the Company to not less than 50% of the profit attributable to owners of the Company. In addition, the Board of the Company has reached a consensus and is planning to maintain a relatively consistent amount of dividend per share for the three consecutive years starting from 2018, which, in principle, will be not less than the dividend per share declared by the Company in 2017.