Earnings Call: Q1 2022

Apr 28, 2022

Earnings release

First of all, the director of the board and the president of the company, Mr. Zhao Ping, will review the business performance for the first quarterly results of 2022, followed by Q&A section. Now, may we have the honor to invite Mr. Zhao to review the business performance, and Ms. Liu Tienyu will conduct the English interpretation. 女士们、先生们，大家好，欢迎各位参加一季度业绩推介电话会议。下面我先简要介绍一下一季度公司经营基本情况，然后我和我的同事与大家进行交流。 Ladies and gentlemen, good afternoon. Welcome to the first quarter results conference call of Huaneng Power International. Please let me briefly introduce the operating results of the first quarter, and my colleague and I would like to answer your questions. 昨天公司公布了第一季度的经营业绩。一季度公司安全生产保持平稳，发电量价环比提升，单位燃料成本环比下降，煤电板块环比大幅减亏，境外项目效益增长，为统筹推进全年经营发展各项任务打下良好基础。按照中国会计准则计算，2022年一季度公司实现合并营业收入652.5亿元人民币，同比上升30.54%；归属本公司股东的净利润是负的9.56亿元人民币，每股收益为负的0.09元。 The company has just released the first quarter result. In the first quarter, the company maintained safe operations. The power generation and tariff increased, and the unit fuel cost decreased comparing to the last quarter. The coal power sector has significantly reduced losses, and the profit of overseas projects increased, which laid a solid foundation to complete various tasks of operation and development in 2022. Under the Chinese accounting standards, the company achieved a consolidated operating revenue of 65.25 billion yuan, increasing by 30.45% year-on-year. The net profit attributable to the company's shareholders was negative 956 million yuan. The earning per share was negative 0.09 yuan. 发电方面，公司境内电厂合计完成上网电量1071.17亿千瓦时，同比增长2.42%。发电设备平均利用小时971小时，同比减少32小时。供热量同比增长8.22%。公司电量上升的主要原因是一季度全国用电需求保持增长，拉动发电侧电量同比上升。公司新能源投产并网容量同比增加，新能源发电量同比快速增长。另外，公司境内电厂落实有关电价支持政策，公司平均结算电价同比、环比均实现增长。 In terms of power generation, the company's domestic on-grid electricity was 107.7 billion kWh, increasing by 2.42%. The average utilization hour was 971 hours, decreasing by 32 hours. Heat supply increased by 8.22% year-on-year. The increase in company's electricity was mainly attributable to the steady growth of national power consumption, driving the power generation to increase year-on-year. Renewable energy installed capacity has increased, and the power generation had a higher growth rate comparing to the same period last year. Furthermore, the company's domestic power plants have implemented supporting policies about the tariff. The average tariff increased year-on-year and quarter-on-quarter. 燃料方面，公司积极落实国家出台的相关政策，积极与上游供应商进行沟通，继续推进落实长期资源，努力提升长期合同的覆盖率，同时加强燃料采购成本管控，优化燃料库存管理。公司境内电厂一季度单位燃料成本为361.01元每千千瓦时，同比上升52.8%，环比下降17.8%。 In terms of the coal, the company is implementing the government policies and actively negotiating with upstream suppliers, locking contracted coal resources and moving forward the full coverage of long-term contract. At the same time, strictly control procurement costs and optimize inventory management. The unit fuel cost of the first quarter was CNY 361.01 per megawatt hour, a year-on-year increase of 52.8% and a quarter-on-quarter decrease of 17.8%. 发展方面，公司持续推进清洁能源项目的开发建设。一季度公司投产和并网发电装机容量242万千瓦，其中风电149万千瓦，光伏89万千瓦，生物质4万千瓦。公司可控发电装机含季度末的并网容量是达到了1.21亿千瓦，风电光伏发电装机容量达到1500万千瓦。 In terms of the development, the company is pushing forward clean energy development. In the first quarter, the company added 2.42 GW of units, including 1.49 GW of wind power, 890 MW of solar power, and 40 MW of biomass power. The company's installed capacity reached 121 GW. Wind and solar capacity reached 15 GW. 二季度及下半年，公司将坚持稳字当头，稳中求进，统筹安全生产、电力供应、建设发展与疫情防控，推进落实安全排查整治，提升发电设备的安全可靠性，坚持效益为先，量价统筹，增发效益电，加强电力营销管理，推动落实交易电价上浮。着力推进煤炭中长期合同的签约兑现工作，优化供应结构，多措并举，控制燃料成本。坚持绿色发展，加大清洁能源建设开发力度，积极创新融资手段，拓宽融资渠道，降低融资成本。公司将聚焦效益和质量，推动经营发展和各项工作。 In the second quarter and the last half of the year, the company will maintain stable operation and insist on making steady progress. The company will coordinate safe production, power supply, construction development and COVID control, improve the facility reliability by safety inspection, insist on profitability, coordinating volume and price, and strive for the profitable power generation. Strengthen the marketing management to implement the market-based tariff hike, promote the signing and fulfillment of medium to long term coal contracts, optimize the supply structure and take multiple measures to control fuel costs. Continue the green development and move forward the clean energy construction. Explore innovative financing and expand financing channels to reduce costs. The company will focus on quality and profitability, striving to complete the annual tasks of operation and development. 好，下面时间我和我同事愿意回答各位的提问。谢谢大家。 Now my colleague and I would like to answer your questions. Thank you. 感谢赵总的介绍，接下来是问答时间。 Thank you, Mr. Zhao. Here we come to the Q&A session. 如需提问，请在话机上按星1键等候。先按星号键，再按1键。 To register your questions, please press the followed by one on your telephone keypad. Thank you. 第一位有请来自花旗银行的刘显达提问。 The first question comes from 刘显达 of 花旗银行. 你好，我是刘显达，花旗银行的。我有三个问题。第一个问题想请教一下咱们一季度那个利润分板块的情况，比如说火电、燃气、风电、光伏等等，每个板块大概利润亏损是多少？第二个问题是想理解的是我们这个月有一些疫情，很多地方可能一些运输包括其他方面，对咱们二季度的影响大概是什么样的？第三个问题是今年新上一些风电光伏需要配储能的情况，想理解对咱们风电光伏新上的项目，长板化和回报率的影响大概怎么样？谢谢。 I have three questions. First, could you please provide the profit breakdown to different energy sources in the first quarter? Second, what is the impact of the company under the current COVID control measures? Third, as some provincial government has released document to require the energy storage for certain solar and wind power, could you please tell us what will this measure increase the company's project cost? 首先我来回答您第一个利润板块的拆分情况。以下是一个根据各个电厂进行的一个适宜性的拆分。从税前利润来看，一季度煤机亏损是32.7亿元左右，燃气电厂大约盈利2.2亿左右，风电是盈利超过15个亿，光伏税前是大约1.6个亿左右，水电和生物质基本是盈亏平衡。 Firstly, let me give you the profit breakdown to different energy sources. In the first quarter, the profit before tax for our coal sector, it was -3.27 billion CNY. For gas sector it was 222 million CNY profit. For wind sector it was positive 150 million CNY. For solar sector it was positive 160 million CNY. For hydro sector and biomass sector, it is break even. 我来回答一下疫情对发展的影响。从年初以来，国内28个省市都同时发生了疫情的变异株的影响。作为发展来讲，我们不管是火电，还有新能源的项目的推进，资源供应上面、设备供应上面和技术人员进场服务方面都受到了相关的影响，对整个我们的发展、开工和投产都有不同程度的受到干扰。我们现在还在努力地推进，克服现在的困难，努力达到年初的计划水平。疫情的影响回答到这儿。 Please let me answer the questions about COVID impact to our development plan. From the beginning of this year, we can see about 28 provinces have some COVID control measures that have deeply impacted our development plan, whether it is our thermal power projects or our renewable projects, as from the resources obtainers, our technician, our supply structures, it is all negatively impacted by the COVID control measures. For now, the company is actively moving forward the construction of certain projects, and strive for complete the whole year plan of development. 好，下面由我来回答关于今年新开工风电储能配置对我们收益率的影响。配套储能已基本成为新能源项目开发的标配。2021年以来，全国有20多个省份都已经明确了新能源配套储能的政策要求，普遍配置在10%到20%，也就是两个小时这么一个范围。近期储能的价格也有一些波动，根据测算，按照10%两个小时来配套储能设施，将对风电增加成本在7%左右。2022年3月，国家发改委、国家能源局都已经印发了《"十四五"新型储能发展实施方案》，明确在发展电源侧储能的同时，要加快合理的成本疏导机制。我们测算了，配套的风电7%的成本影响将影响全投资收益率大概在1%到1.3个百分点。预计随着国家政策的引导，随着储能技术的进一步成熟，成本也将逐渐下降。配套储能以及相关的一些政策对经济性的影响也将有所缓解。谢谢。 Please let me answer your questions about the energy storage facility with the renewable energy development. This year, more than 20 provinces has clarified its policy about energy storage alongside with the renewable energy development. Most of the policy is between 10%-20% of the total capacity of our renewable installed. That is to say about two hours of energy storage. From the current policies, we can estimate that if we add 10% of energy storage to our total capacity about two hours, that will increase 7% for the construction cost for a single solar power project. By March 2022, the NDRC and NEA has released the working plan for the energy storage development. It has clarified that with the development of energy storage, we also need to make sure the cost relief to the buyer side. As we estimate that 7% cost increase for our wind project, that implies 1%-1.3% IRR increase when deciding our investment. After the policy's guidance and the technician update, we think our cost will be lower in the future. That is all. Thank you. 好，谢谢。问回答。下一位有请来自中银国际费云清提问。The next question comes from 费云清 of BOC International。各位领导好。我这边有三个问题，两个是关于煤价的，一个是关于新能源的。第一个是大家都非常关心的发改委的303号文，应该是马上5月1号就要生效了。想请问一下，公司目前跟煤炭企业的长协谈判的情况怎么样？我们应该去预期5月1号之后，我们大概有多少的长协采购能够落在这个570到770这个范围内？虽然发改委的要求是100%，那么从现实的运营情况去考虑，是不是预期年度长协这一部分落在这个范围内的概率会更大？这是第一个问题。那第二个是关于进口煤的，因为现在进口煤的价格跟国内的下水煤的价格有一个倒挂，然后人民币最近的贬值也是比较快，那么以后要保证我们今年年初预计的这些进口煤的量能够买进来，应该是困难比较大的。那我们了解上周发改委也是组织了电力企业跟煤炭企业补签了一部分的长协，应该有1.8亿吨左右。想问一下公司这方面的补签的采购量有多少，然后这个定价机制是怎么样的？那第三个问题是关于新能源，因为我们也看到发改委之前能源局出了一个文，就是今年新核准的风电的光伏项目继续按平价去走，不用竞价了。那么公司有没有测算这块能够释放大概多少的新增的核准的项目？那么这个对今年我们的新增装机或者说新开工的这些风光项目有没有一个增量的影响？谢谢。 I have three questions. First question is about the coal price. As the NDRC's release Document 303, the new pricing mechanism will come into effect in May the 1st. Could you please provide us some information about company's current negotiation status with our upstream suppliers? By how much of our coal purchase can be arranged in the 570 to 770 yuan price range? As the government has asked 100% full coverage of long-term contracts, by how much does the company estimate can be fully implemented? My second question is about imported coal. As we all know, the imported coal price is now higher than the domestic coal. With the RMB depreciating, is there any difficulty in implementing all the quantity planned by the beginning of the year? Last week, the NDRC has arranged about 180 million tons of long-term contracts resigned. By how much percentage is the company's contracts resigned in this process? My third question is about renewable energy. As new policies released by the government about the renewable energy, new capacity will be on grid without the feed-in tariff. Could you please give us an estimation by how much more projects can be added to the resources, and what is the company's renewable energy reserves by this point? Thank you. [Foreign language] Please let me answer your questions about the coal contract. In the first quarter, by the end of March 31st, the company has already negotiated the total quantity of 1.53 billion tons of coal. It increased by 6.9% comparing to last year, and it can cover our coal demand about 75.1%. If we excluded the imported coal, it can cover 96.3% of our total coal demand. [Foreign language] Currently, there's about 1.53 billion tons of our contracted coal. Of the long-term contract coal that can be arranged in the government guidance 570 to 770 yuan price range about 40%. And other quantities, we are now negotiating with our upstream suppliers to resign those contracts and strive for the new pricing mechanism。在303号文件里面，也明确了这个长协的价格570到770块钱，是针对北方港下水煤5500大卡含税的这么一个价格。然后各个产地的价格，它们有各自的国家给设定的合理区间。 According to the government Document 303, the 570 to 770 yuan price range is for the 5,500 kcal North Port coal and for the coals in the pit head, they have their own price range set by the government. 目前我们认为下水煤的长协价格完全地回归到合理区间的可能性还是比较大的。一方面我们也可以看到最近基本面的供需矛盾有了明显的缓和。另一方面我们也可以看到国家对于煤炭价格监管的决心很大。近期国常会也是特别提出将要运用市场化、法治化的手段，确保煤炭价格在303号文提出的合理价格区间内运行。 Currently, we estimate that there is great possibility that the seaborne coal will be run between the reasonable range of coal price. First, it is because we can see the demand and supply fundamentals. It is of recent days. Second, the government have great resolution in expecting the coal supplies and using the market ties as well as legal methods to ensure the supply and control the price. We can see, there are great possibility that the price will drop to the reasonable range. 而且您也可以注意到，最近北方港下水煤价回落的速度是非常明显的。截止到4月25号，北方港口5,500大卡市场煤的平仓价格是CNY 1,150元每吨，比3月10号，也就是今年一季度的最高点CNY 1,720元每吨，下降了33%。 Recently we can see from the market spot price, the coal price has been dropped dramatically. The 5,500 kcal coal in North Port in April 25th, the price was at CNY 1,250 per ton, it has a 33% decrease comparing to the price in March 10th, which is CNY 1,720 per ton. 进入5月以后，也是全年煤炭价格的一个淡季。而且加上现在疫情对于用电需求有所扰动，我们认为市场煤价还有进一步回落的空间。市场与长协价差大幅收窄，也更加有利于303号文政策全面落地。 Entering May, we can see it is the off-peak season for the coal market. With the COVID control measures, it also has an active effect to the market demand. Recently we can see there is still room for the further decrease of the coal price with the narrowing down of the market price to the contract price. We are quite confident about the price drop to the reasonable zone. 关于您说的运力问题，确实是存在一定的制约情况。但是国家给发电用热企业的运力给予了很大的政策倾斜，给我们的长协合同都配置了基本的运力。 About the transportation problems, we have seen some transportation difficulties, but the government has said the transportation is exclusive for the power generation and heat supply power plants. 同时公司也会和集团进行一个运力的优化和配置，来解决运力制约，还有运力瓶颈方面的问题。我们认为后期运力会逐渐地缓解这个矛盾。 At the same time, the company and our group company have optimized our transportation management. We believe in the future the transportation problem will be eased off. 您的第一个问题我就回答到这里。然后回答一下您的关于进口煤的问题。最近你也注意到国家主管部门牵头，给进口煤依存度比较高的这些电力集团配置了1.8亿吨的进口煤应急保障合同。 About the second question about imported coal. We can see that the government has set 180 million tons of long-term contracts for those power plants that rely on the imported coal. 公司得到的资源大概占我们全年进口煤总需求的73%，这个是国家部委已经给我们配置好的资源。 The company has obtained resources amounted to 73% of our total demand that has already settled by the government. [Foreign language] Furthermore, the company have about 10 to 20 million tons of long-term imported coal contract with overseas companies. [Foreign language] Combine all the above factors, our demand can be met by our supply. [Foreign language] 你好，我来回答您第三个问题。公司近些年也在不断地加大新能源项目的开发的力度，通过多种渠道去获取新能源的项目资源。2022年的一季度，公司已经新获取到了新风电和光伏项目的核准备案规模，超过了600万千瓦。那么后续对于已经取得核准备案的项目，我们将按照各个地区的要求，加快落实建设的指标，落实土地接入以及环评等各边界条件，在确保项目收益的前提下，加快推进有相关项目的建设。谢谢。 Recently, company has focused on the green energy development and actively obtain new energy resources. In the first quarter, the company has obtained 6 GW of renewable energy that has already been approved by the provincial government. Furthermore, the company will follow the provincial government's policies and rules and obtain the approval in the land and in their environmental inspection and in the premises of certain profitability, push forward the construction of those projects. Thank you. 下面有请国信证券黄秀杰提问. The next question comes from 黄秀杰 of Guosen Securities. 公司领导你好。其实我主要关心的问题，前面也有投资者提问到，我补充一个，就是我们确实关注到一季度我们整个资本性支出比去年还要低一些，但低得也不多，就是89亿，去年是92亿。就是我们今年如果要完成8 GW的新能源投产的话，去年因为我们只投产了3.2 GW，如何去安排这个资本性支出，包括我们的投产计划在季度之间是大约怎么分配的，这是一个。然后当然第二个就是我们也看到一季度整个新能源的盈利还是比较符合预期，或者说甚至是好于预期的。我们现在因为投产的1.5 GW的风电里面，可能有一部分是去年遗留下来的一些海风项目，我们这个海风项目是不是已经全部投产了？这是第二个问题。第三个就是我们煤价情况。煤价的话，其实刚才也有投资者提问到，就是我们其实一季度平均价在1200来说，给中电联的沿海煤价来比较的话，其实并没有说体现出非常大的一个优势。然后基本上比平均行业来看的话，因为我们算下来的话，中电联那个综合成交价大约是1000不到100，可能加上运费也差不多到1200这个位置。因为我们公司相对于是龙头，我们在煤价这块是不是后续会享有一部分中长协履约或什么一些优势？对，就主要是这些领导。 I have three questions. My first question is about company's CapEx plan. In the first quarter, we can see the CapEx is relatively low compared to last year. In order to the 8 GW newly added capacity put into operation, what is the company's CapEx plan later this year? My second question is about the offshore wind construction. In the first quarter, the renewable energy has made sound profit for the company. We can see there is 1.5 GW of capacity that put into operation this year. Is that included all the offshore wind that the company announced that has been put on grid last year? Does all the company's reserve capacity has been put into operation? My third question is about the coal price. We can see throughout the industry, the average coal price is about 1,100 CNY per ton. The company did not achieve advantage from this price. Does the company have any advantages in the coal procurement? Thank you. 好，我来回答一下关于新能源的发展的这个问题。对投资者关心的我们新能源发展的规划，我们今年的新能源的规划还是803万，这个没有变。这个年初发布的预告，也就是说我们有303的风电，包括海上风电135万，还有光伏，我们有将近500万的光伏。组合起来，803是今年的新能源的发展的规划，没有变。正像您问到的，我们去年的确有将近550万左右的新能源没有并网。但是这个指的是我们相关的项目，我们开始建设到最后投产的一个考核标准的问题。因为部分的项目已经完成了项目的建设，去年冬季正在进行考核。所以去年有将近500多万的没有完成。但是我们新能源未完成500多万的这个容量头，其中一季度我们已经投了将近110万的这个风电，这是确定投产的。还有剩下的都开工了。就海上风电这个说法，去年我们虽然很多的项目建设到年终的时候也遇到了疫情，还有材料供应等诸多的困难，大部分的项目我们也进入了试运并网的这么一个条件。很多项目已经开始并网，只不过我们没有完成我们考核的240小时的这么一个考核的标准。所以今年一季度我们也在陆续地把这一部分的项目再投产。另外还有一些包括电价的补贴，还有一些我们在进一步地拿到。这一块从今年开始，我们陆续包括我们这个项目都比较稳健地推进。一季度我们认为我们投产的整个的概念比较正常，虽然有疫情的干扰，我们也克服了困难，投产的比较。二季度我们有很好的预期，可能也有一个将近从光伏再加上风电有200多万这么一个投产的预期。年终的计划，剩下的话是三季度和年末的这么一个情况，我们期望干扰会变得更小。从今年的话，我们包括光伏，包括新能源，我们的采购现在到3月底已经有600多万的已经完成的设备采购，设备的订货。630多万完成了采购和设备订货。所以我们的计划还是按规模往前走。我们现在还是比较有信心，年底之内完成800万的这么一个新能源的装机。好，我回答到这。 Please let me answer the questions about renewable energy development. The company has planned 8.03 GW of renewable energy capacity this year, including 3.03 GW of wind power. It also includes 1.35 GW of offshore wind and 5 GW of solar power. Last year the company has put 5.5 GW of capacity that connected into the grid, but for some reason, some of the projects did not pass certain tests to be counted into our operation data. For now, some of those projects have completed the construction, and in the first quarter, in total, we have put 1.1 GW of wind power into operation. For other projects, they have already under construction. Last year, we faced the difficulty in the middle of the year from those COVID control measures from the supply of our facilities. With all those difficulties, the company has not finished our plan in the beginning of the year. In the first quarter this year with the project has been put into operations, we believe we are facing a more positive environment. In the first quarter, we can see there is very stable construction environment. In the second quarter, we also have positive expectation about our project development. In total, we estimate about 2 GW of renewable energy, both wind and solar, be put into operation in the second quarter. Other capacity will be put into operation in the third and fourth quarter in a planned way. In total, this year we have already purchased facility for our 6.3 GW of capacity. So we are quite confident about the company finishing the plan of 8 GW renewable energy capacity this year. Thank you. 下一位有请来自—— Sorry。刚才还有第二个问题，就是配着项目的进展进度的情况呢，关于资本支出的计划和资本支出的计划完成情况，以及资金保障的这一段阐述吧。首先从全年的计划来看的话，风电和光伏整体的资本支出超过310个亿。一季度按照现场项目的进度情况呢，完成的资本支出是在40亿左右，在风电和光伏的领域。 Please let me answer the questions about the company's CapEx plan. So this year the company has planned in total 31 billion CNY in our construction and other perspective. In the first quarter, the company has finished 4 billion CNY of CapEx. 项目的融资渠道是畅通的，而且成本有保障。一季度公司资金成本率环比下降了6个百分点。谢谢。 The company has various channels to finance our project and we can secure our financial cost. In the first quarter, the financing cost decreased by 6% comparing to the last quarter. Thank you. 投资者您好，我来回答一下您的第三个问题。公司在2022年一季度的原煤采购单价是822.52元每吨。我不知道您看到中电联的这个1200块钱是不是原煤价格。 About your third question, the company's raw coal purchase price in the first quarter 2022 was 822.52 CNY per ton. I am not sure if your data is the raw coal price. 领导，可能是这样的，可能热值不一样，中电联上公布的都是5500大卡。我们这边的原煤热值是4565大卡，所以我们的煤价换到7000大卡的标煤采购单价是1261块2毛6元每吨。谢谢。 The authority released coal price is for the coal with heat value 5500 kcal. The company's calculated raw coal heat value was 4565 kcal. If we transfer it into the 7000 standard coal, the coal price was CNY 1,261.26 per ton. Thank you. 好的，谢谢领导。 [Foreign language] The next question comes from Zou Peixuan of Shenwan Hongyuan Securities. 喂，尊敬的管理层，能听到吗？那我一个问题，可能还是关于煤价的，因为刚刚各位同行都已经对煤价提出了比较多的问题，那我再补充问一点，我第一个问题就是，管理层能不能从业内的角度帮我们展望一下整个2022年的煤价走势？因为现在各方面的信息非常多，而且互相都是矛盾的，就比较博弈。现在有一种非常普遍的看法，说是现在的煤价下跌是由于一方面是自然的淡季，另一方面更重要的是以上海为首的整个长三角地区在封控，它导致了这个像长三角用电量的下滑了20%到30%，尤其4月份。那这种情况下，煤价才仅仅从4月初的1300、1400块钱下跌到了现在这1100、1200块钱。然后有一种说法就是等到这个疫情结束之后，可能会暴力反弹，反正说今年七八九月份的话，有可能再次上2000。那关于这种说法的话，请问领导从业内的角度看，怎么看这个问题？然后第二点就是，国家发改委说了大约是570到770这个整体的区间，从5月1号开始执行，那公司可不可以给我们展望一下，到全年，或者是说如果不算一季度，未来从5月1号之后，这个比例大致可以提高到多少？比如说提高到个60%、70%，那么剩下的30%、40%，我们的煤价的价格是怎么确定的？以及您刚刚说的话，发改委已经批了进口煤的额度，以及我们有一些煤炭的长协。但是其实从投资者的角度来看，大家关心的不是量，大家还是关心的价格，因为现在海外的价格比较夸张，现在都是到2000多，最高点的时候都已经达到折合人民币3000块钱的一个煤。那发改委给我们找到的煤源，以及我们签的长协的煤源的价格是多少？以及第三个问题，就是公司能否方便，如果不方便也算了，是否方便透露一下我们4月份的煤电的盈利能力是怎么样的，以及公司展望一下大致什么情况下可以实现扭亏，以及全年有希望实现盈利。全年综合来看的话，就是单独的煤电这部分不算新能源，有可能实现一个正的盈利。好的，我的问题到这里，谢谢管理层。 I have three questions. It's all about the coal price. As your information above and others sources of information, we can see some contradiction in the market. Could you please give us the company's guidance of the coal purchasing cost in the whole year 2022? Some have said that recent days, the coal purchasing price decreased because of the Yangtze River Delta COVID control measures. It decreased by 30%. With the pandemic control measures over, it will have a dramatic rebound of the coal price. The second question, the NDRC has set the reasonable range for coal price within the 570 to 770, and it will be implement in May 1st. Could you give us the guidance of the company's proportion that can use this coal price? If the company's long-term contract about 60%-70% of total coal purchase, will the other 30%-40% using the spot price and with the high price of overseas coals. Could you please give us the guidance of the company's whole year purchasing price and the proportion of the contract coal assignment. Could you please provide us the coal price in April? Could you give us a guidance, when will the company turn loss into profit this year? Thank you. 投资者您好，我来回答一下您的前两个问题。首先我们公司对于2022年全年的煤炭市场的展望是这样一个情况，因为随着十四五期间严格合理控制煤炭消费增长的基调是已经确立的，加上清洁能源是呈现一个规模化的增长，所以我们预计2022年全年煤炭消费的增速会显著放缓。 Please let me give you the company's guidance of the whole year coal price in 2022. During the 14th Five-Year Plan, the government has strictly controlled the consumption of the coal quantity. As the renewable energy capacity increase, we estimate that the coal consumption in the future will decrease. 同时呢，供应方面，国内的先进产能是在持续释放。继去年四季度新增5亿吨保供产能之后呢，最近发改委包括国务院都提出了要继续增加3亿吨先进产能释放这样一个目标和要求，加上呢国家在大力地引导这个发电，还有供热用煤的长协合同全覆盖，所以我们认为整体呢，电煤市场的供应能力还是充足稳定的。在303号文全面落地以后，我们认为全年的价格有很大可能像303号文规定的那样，在一个合理的这个价格区间内运行。 From the supply side, we can see the government has released some advanced capacity into the market. The government has released 500 million tons of capacity in the fourth quarter last year, and NDRC has announced another 300 million tons of capacity added this year. Under the government guidance of the 100% full coverage of long term contract coal, we think in the future the supply will be quite stable. After the Document 303 implemented in May 1st, we think the price have great possibility to drop back to the reasonable range. 你也注意到今年一季度呢，这个国内煤炭市场的价格整体是高位波动运行，我们认为主要是由于一方面一二月份受到印尼禁止煤炭出口，加上二月份俄乌地缘政治冲突升级，导致这个进口煤的补充能力减弱，对我们紧平衡的沿海市场呢，造成了一个大幅的扰动。加上一二月份我们的宏观经济是持续向好发展，加上有这个极寒的天气助力呢，煤耗一直是居高不下，导致今年一二月份煤价处于一个高位运行的态势，并且在3月10号达到了一个一季度的高点，CNY 1,720元每吨。 As we can see, in the first quarter, the domestic coal price is fluctuating in a very high level because of following reasons. First, the Indonesia ban on export coal price have affected the oversea coal price. Second, the conflict between Russia and Ukraine also drive us the coal price overseas. The imported coal supplementary role to domestic coal has been weakened. Second, as the macroeconomy is still in a recovery trend with the impact from the extreme cold weather, the coal consumption stayed relatively high. That drove up the coal price as well. In March 10th, the coal price have reached a historical high of 1,720 CNY/ton. 3月以后，随着供需基本面发生了明显的变化，特别是进入4月份以后，随着供暖季结束，清洁能源也是出现了非常明显的增长。最近全国的风、光、水发电同比都保持在两位数以上的增速，对于电煤的消费形成了抑制。所以到近期，沿海的煤价也是大幅回落。4月25号，北方港5500大卡动力煤是CNY 1,150元每吨，比一季度的高点下降了33%，下降的幅度还是非常大的。 Entering March, we can see the fundamentals of supply and demand has changed greatly. As in April, with the ending of the heating season and the renewable energy generation has increased dramatically, it can dampens the coal power demand. We can see the wind, solar and hydropower has a growth rate higher than 10%, and that drove the coal price to decrease recently. The coal price of North Port has decreased by 33% to 1,150 CNY/ton. 目前国家发改委、国务院已经明令今年要新增3亿吨产能，将会有效地补充我们进口煤的缺口。所以我认为，您说的等到需求恢复以后，煤价会要再度大幅上涨，这样一个说法基本上是不成立的。特别是303号文中也有明文规定，国家发改委将根据价格法第30条等规定，按照程序，在煤炭价格显著上涨或者有可能显著上涨时，及时启动价格干预措施，引导煤炭价格回归合理区间。所以我们认为今年不再会出现像去年那样大幅涨到CNY 2,600元那种局面。谢谢，第一个问题回答完毕。 The NDRC has also released about 300 million tons new capacity into the coal market that will fill in the gap of the imported coal. We estimate that there won't be a great price rebound in the coal market. With all the measures taken by the government, we are quite positive about the coal market in the future. 有关投资者您的第三个问题，因为公司不太方便做盈利预测方面的分析，所以这个问题暂时不予回答。谢谢理解。 About the third question, the company can't give a profit estimation, so we are sorry we can't answer this question. 好的，那我们长协的比例可以方便透露一下吗？我们的展望就说可以满足570到770这个长协的比例，以及剩下的煤的价格，我们怎么解决？还有进口煤的问题，就是可以给一个稍微具体点的数吗？投资者您好，回答一下您这个问题。首先就是570到770这个合理的价格区间，针对的是下水煤，5500大卡这么一个价格，所以像陆运直达区域，它们有各自的对应区间。现在这个公司已经对接了长协合同量是1.5亿吨，覆盖了需求达到75%，其中完全符合国家量价要求的在40%左右。接下来，我们在剩余的量上，公司会积极地进行长协合同的换改签工作。但是我觉得具体能提高到多大比例，我觉得就是和国家层面推动这个303号文落地执行的力度有关了。从目前情况看，国家层面的决心还是非常大的，但是303号文能否全面落地，我们认为也和地方政府的配合推进程度息息相关。如果中央以及地方政府能够全力配合推行该政策，我们认为公司起码能够有90%以上的长协合同量是能够在这个合理价格区间内运行的。回答到这里，谢谢。 About your questions about what will be the percentage of the company's coal that will be implemented, the CNY 570 to CNY 770 price range, my answer is as follows: The company has already negotiated about 150 million tons of long-term contract coal. That accounted for about 75% of the company's total coal demand, and about 40% have the price that will run in accordance with government reasonable price range. For other contracts, the company is actively re-signing those contracts. We think, in the future, whether those contracts will have the price in the government's guidance pricing mechanism is determined by the enforcement of the government policy. We need the central government, as well as provincial government, to work together to push forward this policy implementation. We estimate that if the central government and the provincial government have great enforcement in the policy, the company will have above 90% long-term coal coverage to our total coal demand. Thank you. The next question comes from Steven Sui of JP Morgan. I have three questions. My first question is, as the company released the average tariff in the first quarter, it increased almost to 20%, and the company's whole year's guidance was only about 10%. Is the company a little conservative when estimating the whole year tariff hike? Is that because the grid company purchased on behalf of the users? My second question is, could you please provide the company's guidance of second quarter about the coal price and the tariff? My third question is, could you please talk about the impact of the COVID control measures? Thank you. Please let me answer the questions about tariff in first quarter. The average tariff of the company was CNY 501.96 per MW hour. It increased by 19.47% year-on-year. It is higher than what we estimated because the coal price is relatively high in the first quarter. The power purchased by the grid company on behalf of user has about 20% tariff hike on average. It is implemented according to the monthly bidding tariff. In the second quarter, after the government Document 303 come into effect after May 1st, with the coal price drop, we think except for those contract sales volume that has fixed in the price [Foreign language]. Please let me give you a brief introduction of how COVID control measures impact our power generation. In short term, our power generation growth rate in March has a 2.3 percentage point decrease comparing to January and February. 而且从全国的情况来，分区域来看，用电增速还是有分化的。因为现在疫情对于沿海地区，比如江浙沪、广东这边用电大省的影响是更严重的。所以我们也看到3月份单月沿海地区的用电增速只有1.9%，而我们公司在这几个区域的装机比例相对比较大。 The COVID control measures affected different provinces differently throughout the country. It had a greater impact on the provinces alongside the coast area. In March, we can see a 1.9% growth rate impact on the coastal areas. That is where the company's power plants locate. 4月份是国内传统用电的一个需求，传统淡季，再加上疫情的影响，很多工业企业的开工率不足，相对比较疲弱。到了五月、六月，五月是平水期，六月是丰水期，这样的话，新能源的大发可能也会对我们的煤电产生一些影响。 In April, we enter into the off-peak season for thermal power, and with the COVID pandemic, it also dampens the power demand in the power market. Entering May and June with the hydropower output increase, it can also affect our power generation. 总体看，4月用电增速可能会在2%左右，这是国家的一个情况。五月、六月可能会随着气温的上升会有所好转。但是总体看，我们对完成全年5%到6%的用电增速目标还是没有变的，从中电联公布的这个数据来看。 In April, the power generation growth rate is estimated to be about 2% and in May and June it will become better. In general, the power generation growth rate will be around 5%-6% in the year of 2022. According to authorities, we did not change the guidance of the whole year growth rate. That is all. Thank you. 投资者您好，我来回答一下您关于二季度煤价的展望问题。首先，我们认为二季度的综合采购原煤单价一定会在一季度822.52这样一个基础上有所回落。 Please let me answer the questions about the coal price in second quarter. We estimate that in the third quarter, our purchasing standard coal price will have a decrease comparing to the first quarter, CNY 822.52 per ton. 二季度的煤价回落是基本面和政策面共振发力的结果。从政策上来看，中央平抑煤价的决心是很大的。加上5月1号以后，303号文正式生效，公司将会执行新的中长协合同价格。这样一个政策是有利于公司来控制燃料采购成本的。 In the second quarter, we think the price is affected by both the market situation as well as the policy measures. From the government side, we can see the central government have put great importance in controlling the coal price. After May 1st with the implementation of the Document 303, we think our coal will implement a new price that will help with the control of our fuel cost. 同时，二季度的基本面，供需矛盾也会较一季度大幅缓解。首先从供应情况来看，二季度煤炭生产我们认为将会明显高于一季度，这也是一个季节性的规律。一季度因为一二月份有春节的影响，加上降雪对于煤炭生产也会有扰动。平均一二月份的产量基本上就是年均产量的最多达到90%这样一个水平。所以二季度因为没有了这些节假日，还有重要政治事件这样一些扰动，再加上有国家政策的全力支持，我们认为二季度国内的原煤产量会继续保持在一个高位水平。 At the same time, the fundamental of supply and demand were itself in the second quarter. From the supply side, we can see that the production in the second quarter will be higher than the production in the first quarter, because in first quarter we have holidays of Spring Festival and also the snow weather may impact the coal production. So in the second quarter, without those factors impact the coal production and with the government strict policy controls, we think the supply domestically will increase. 同时从煤炭消费来说，二季度也是全年的煤炭消费淡季。今年风光水都是持续的高位发力，加上疫情对于用电需求也有扰动。近期我们也可以看到电煤消费出现了一个比较明显的下降。 In the second quarter is the off season of the coal consumption. With the hydro power, the wind power, solar power generation increase and with the COVID control measures, we think the consumption will decrease in the second quarter. 随着供应增加，需求减少，加上政策发力，二季度的煤价肯定是环比下降，但是下降的幅度我们认为还是取决于303号文它生效的程度，还有执行的力度。 With the supply increase, the demand decrease, and all those measures taken by the government, we believe in second quarter we will have a quarter-on-quarter decrease of coal price. But it's also determined by the enforcement of the government Document 303. 我就回答到这里，谢谢。 That is all. Thank you. 由于时间关系，我们有请最后两位提问。Due to time constraints, we invite last two investor to ask. Next, we invite Long Haoxiang of CITIC Securities to ask a question. 各位领导好，我有两个问题想请教一下，第一个问题是关于新能源方面的，公司目前的风光大基地项目的获取情况如何呢？然后第二个问题是想请教一下，在一季度末的话，能否帮我拆分一下，在扣除永续债之后，公司的新能源板块和煤电板块的净资产的规模。谢谢。 I have two questions. First, about renewable energy. Could you please provide us some information about company's obtainers of the wind and solar base project? My second question is, could you please provide us the net assets breakdown to different energy resources by the end of first quarter? 您好，回答一下您第一个问题。公司是在积极地参与国家的风光大基地的项目的开发。截止在去年年底，公司纳入国家第一批风光基地的建设的项目，一共规模到234万千瓦的规模，其中风电是在135万，光伏在100万左右。后续今年开展的第二批的风电基地的争取项目，我们所属的各个单位也在积极地参与各个省市的获取的这个工作。那么后续有了新的情况，我们在合适的方式、合适的时候再予以披露。谢谢。 About the company's construction plan of renewable base project. The company now is actively participated in the obtain of those projects. By the end of last year, in the first phase, the company has participate about 2.34 GW of wind and solar base project, including 1.35 GW of wind and 1 GW of solar. In the second phase, the company will continue actively participate in the obtainness of those projects and will update relevant data at appropriate time. Thank you. 我来回答关于净资产拆分的这个情况。由于存在着比较多的在同一个法人项下不同发电类型的资产以及分支机构的电厂，所以净资产拆分是示意性供您参考。在煤机的层面是490亿到560亿左右的净资产，风电的是430亿左右的净资产，光伏是80亿左右的净资产。谢谢。 Because of some uncertainty by our branches joint venture situation, the following numbers are only a demonstration. For the coal sector, the net assets was about CNY 59 billion to CNY 60 billion. For the wind sector it is about CNY 43 billion. For solar sector, it is about CNY 8 billion. Thank you. 最后一位有请来自国泰君安的于红光提问。 The last question comes from 于红光 of 国泰君安 Securities. 抱歉，接入的比较晚。我这边有两个问题请教一下管理层。第一个问题是关于经营现金流的情况。看了一下经营现金流，一季度是84亿元。那如果我们把存货的一个减少考虑进去，这块的影响去除掉的话，那其实这个经营现金流也离零也比较近了，那这个经营现金流的压力会比较大。那我想请教一下，目前是否有负的这种经营现金流的电厂，如果有亏现金流的电厂的话，它的一个比例是多少？然后第二个问题是关于市场电，因为我们看到这个市场电比例也是达到一个非常高的水平，那如果煤价和电价深度去联动的话，可能我们对于点火价差会更为关注，那我们这边是否有对于点火价差的一个控制目标？以上就是我的问题，谢谢。 My first question is about the company's power plant operating cash inflow. We can see from the company's statistics that some of our power plants are under great pressure of negative operating cash flow. Could you please provide us the proportion of the power plants that have a negative operating cash flow? My second question is about the margin contribution of the company's power plant. As the market-based power sales accounted for greater proportion of the company's whole power sales, there is a great linkage between the coal price and the tariff. Could you please provide us the unit margin contribution for the company's power sales? 我来回答您的关于点火价差的这个问题。从边际贡献的角度来讲的话，煤机的边际贡献一季度大约是在小70块钱左右，这是对点火价差的一个参考。那如果从现金流的角度来看的话，您说的是比较准确的，这个一季度现在是84个亿的经营现金流，去年全年是60个亿左右的经营现金流。那如果从存煤的角度来看的话，确实公司的存煤量是比年初有比较大幅度的下降，但是这个经营现金流也是由这个存煤量的这个资产的存货价值的下降，其实也是由两块构成的，一块确实是存煤量本身下降引起的，那么大约是从1300多万吨的期初的库存的存煤降到现在800万吨左右的一个库存的存煤，这是一个量上的降。但另外一方面也确实是存在着从期初以来采购价格的大幅下降，对存货价值整体余额下降的影响，当然这部分影响也体现在了公司经营现金流的增加层面。 First, about the company's margin contribution. The unit margin contribution of the company is at CNY 70. The second question about the company's cash inflow. The cash inflow was about CNY 8.4 billion. That is greatly impacted by the company's inventory of coal, considering the following reasons. First, the quantity of the company's inventory has dropped from 13 million tons to 8 million tons. Second, because of the procurement cost has decreased. Those two factors have impacted our inventory value. 但是从经营现金流，从公司的现金保障的情况来看的话，虽然一方面经营现金流是有一个积极的增长的，另一方面其实刚才也谈到了，公司整个融资的渠道是畅通的，而且融资的成本是环比上个季度，比年初还有6个BP的下降。所以从资金保障的角度来讲的话，公司总体情况平稳并且稳中向好。 From the financing side, we can see that the company has an increased cash inflow. As I just said, the financing channels are very great for the company, and the financial cost has decreased by 6 basis points. We can see that we can ensure our cash needed. 从火电的亏损面的情况来看的话，在一季度里边，火电的亏损面大约在60%左右。那么从亏损面衍生出来的，就是经营现金流的情况可以对照着分析，也就是经营现金流其实也环比上个季度公司有了大幅的改善，也意味着整体主要是煤电这个板块，经营现金流环比上个季度有了很大的改善。那当然从经营现金流个别电厂有出现亏损的这个情况来看的话，是远小于整个利润的亏损面的。 In the first quarter, about 60% of the thermal power plants suffered from a loss. From the operating cash flow point of view, we can see that the operating cash flow has increased quarter by quarter, mainly due to the cash inflow for the thermal sector increased. For the power plants that have negative operating cash flow, it is relatively small comparing to the company's whole business picture. 从刚才提到的经营现金流个别电厂是负的这个情况，总体来说并不影响公司的整体现金安全。同时，由于公司有这种从总部到地方的整体的资金保障方案，所以从个别电厂情况来看的话，虽然会出现时段性的经营现金流为负，但是资金安全是总体稳定的。 For some of our power plants may have negative operating cash flow, but it won't affect the total company's cash flow security. The company has made several plans to guard against the risks of negative cash flows. We think we can obtain the safety of our financing channels. That's all. Thank you. 好的，感谢管理层，我没有其他问题了。 [Foreign language] Thank you so much for all of the questions and participation today. [Foreign language] Finally, Mr. Zhao would like to give us a summary. 好，非常感谢各位参加华能国际第一季度的业绩推介电话会，也感谢大家一直以来给予公司的持续的关注和大力的支持。今天的电话会议就到此结束，如果有进一步的问题，也欢迎大家会后与公司投资者关系处联系。好，谢谢大家。 Thanks for participating in the first quarter conference call. Thank you for your continued support. Here we come to the end of today's conference call. Please contact our IR department if you have further questions. Thank you. [Foreign language] Thanks again for your attendance of the conference call regarding the first quarterly results announcement of 2022. We are looking forward to meeting with all of you in our next results announcement. Thank you.