Earnings Call: Q1 2008

Apr 23, 2008

Earnings release

Ladies and gentlemen, good afternoon. Welcome to the conference call hosted by Huaneng Power International. Today, we have the majority of the members of new management team with us for this call. First of all, I'd like to give you some highlights of the first quarter results. 按照中国会计准则计算，2008年第一季度，公司实现合并营业收入135.34亿元人民币，同比增长20.23%。合并报表归属于本公司股东的净利润为2.42亿元人民币，同比下降79.95%。公司各运行电厂累计完成发电量461.13亿千瓦时，同比增长18.62%，单位燃料成本与去年同期相比上涨25.92%。Under Chinese accounting standards, in the first three months of 2008, the company realized consolidated operation revenue of RMB 13.534 billion, representing increase of 20.23%. On consolidated basis, net profits attributable to the company's equity holders was CNY 242 million, representing decrease of 79.95%. The company's operating power plants completed total power generation of 46.103 billion kilowatt hour in the first three months of this year, an increase of 18.62% over the same period of last year. Fuel costs increased by 25.92% year on year。由于发电用煤价格的大幅上涨，2008年一季度，合并报表归属于本公司股东的净利润比去年同期大幅下降。Due to drastic increase in thermal coal price, the company's first quarter net profit dropped considerably compared with last year。展望全年，公司在燃料成本控制方面面临较大的经营压力，公司有信心克服困难，在生产经营等各方面完成全年任务。接下来我和管理层愿意回答各位的问题。谢谢大家。Looking ahead, the company will continue to face different pressure with respect to fuel cost control. However, the company is confident that we'll be able to overcome the difficulties and attain the various targets with respect to production and operation for the full year. With that, my colleagues and I are ready to take your questions. Thank you. [Foreign language] Thank you, Mr. Huang. Now it's time for questions. If you would like to ask a question, please push one on your telephone pad, and you may also push star and zero for operator assistance anytime. [Foreign language] Operator, do we have anyone lining up? We have no further question at this time. We will wait。我们等一下，有提问的请按1。大家如果提问的话，请按1，在你的电话机上按1。有提问。好，我们有的一个提问是花旗银行的刘先生，刘先生请。经理们好，我是刘简达，花旗银行的。我有两个问题，第一个问题是，公司之前说是会增加我们产能到6000万，到2010年，那现在这个可能这个水平比较困难的时候，想了解公司会不会维持现在这个目标，还是会减慢？第二个问题是，我想知道今年第一季度，公司那个煤炭价，还有那个合同兑现率是多少？谢谢。 I have two questions. The first question is that the company stated that by year 2010, total installed capacity will reach 60,000 megawatts. Is it very difficult to achieve targets given the current situation? If so, will the company slow down the construction program? The second question is that could the management provide the coal price and contract fulfillment rates for the fourth quarter of 2008? [Foreign language] To answer your first question, there's no change for our target regarding the installed capacity by 2010. We are still aiming to reach 60,000 megawatts installed capacity by 2010. 今年1到3月份重点合同的兑现率达到了88.5%。 In the first three months of this year, contract fulfillment rate for those key coal supply contracts reached 88.5%. 3月份的标煤单价比二月份略有下降，这样一季度累计的标煤单价在每吨680元。 In March of this year, we saw a slight decrease in price of standard coal compared with that of first two months of this year. Therefore, the average standard coal price in the first three months of this year was CNY 680 per ton. 好，谢谢。好，谢谢林先生。接下来这个提问是美林的Vincent Jacoberie，有请。你好，我是Joseph Jacoberie，粤企。我先提到的问题就是，从2018年4月看，下半年公司认为单位燃料的涨幅，2018年全年与2017年大概会在什么样的水平实现？ My question is from April 2008 onwards, what is the management expectation for the fuel price for the whole year compared with that of 2007? 这个请刘总积极来回答。根据目前的情况和一季度的实际的运营情况，我们认为2008年的单位燃料成本涨幅按照18%来控制。 Based on the current situation and also the coal price in the first quarter of this year, we still want to control the unit fuel cost increase for the full year of 2008 at around 18%. 谢谢。好，谢谢Mr. Jacoberie。接下来是Mr. Tony Yap，BluePool。叶先生，有请。叶先生你在吗？好，接下来我们由this国际的叶小姐。你好，王立成。我有两个问题，第一就是税率的问题，因为这一次我算了一下，有效的税率差不多33%，想问一下有没有什么关于税率的变化，还是这是一个provision来的？第二个问题就是想问一下，其实大家都在等电价的增加，想问一下王立成最新政府的取态，对于CPI增加的一个平衡，跟各个发电公司已经开始有部分的IPP出现亏损的这个情况的平衡，他们的取态是怎么样？谢谢。 I have two questions. The first question concerns tax rate. According to my calculation, the effective tax rate was 33%+. The second question is that right now everybody is holding their breath for possible coal pass through. What is the government's attitude on this question, given the current CPI number and how to strike a balance between controlling CPI inflation and ensuring the power companies not to make losses? 第一个问题请朱飞女士回答，第二个问题请刘总经理。税率是有变化的。2008年我们控股的电厂税率由33%下降到了25%。那么一季度实际的综合的所得税率是12%。 In 2008, we have some changes in tax rates. For those power plants that are controlled by HPI, the statutory tax rate decreased from 33% to 25%. As a result, the average effective tax rate for the company in the first three months of this year was 12%. 关于目前煤价的大幅上涨，我们公司也正在积极地向各个方面反映和汇报。目前关于电价调整方面没有新的说法。 On the question of tariff hike. Right now we are actively presenting our case to the government. We haven't received any new information from the government. 叶小姐，OK？叶小姐？好，我们接下来这个提问是由永丰金证券的黄小姐。Wendy Huang from Sinopac Securities。黄小姐。不好意思，我是叶欣欣，我想按照刚才的问题，很快就 follow up 问一下。好，你是 Willis 是吗？对。好，你先来。我想问一下周辉女士，那个税，我就是按照你们说的税费用，就是1.12个亿，然后就是除了上面的利润总额的3.38个亿，这样算出来的。不知道你的那个12%是不是应该按照怎么样的一个数据来算？我给你解释一下，你可能按照报表的总数来除。对。实际上，我们各个电厂是就地纳税的，不是按照综合的数来交税。那么因为今年一季度电厂亏损面超过了50%，对于亏损的电厂是不能抵税的，所以你拿报表总数来除，肯定算不出这个数值。就是说有一部分的电厂是有亏损，所以那个部分就没有税，所以如果这样除下来的话，就是比较高的一个数字，是这样吧？对。明白，好。你说的是50%的电厂是亏损。对。好的，谢谢。好，谢谢你，Willis。谢谢。Operator，我们现在有请Sinopac Securities的Wendy Huang，黄小姐，永丰金证券的。管理层你们好，我有两个问题。第一个，我们昨天也是有注意到电监会的副主席有出来说话，就是说煤电联动的话会考虑通胀。那种情况下面，你们觉得政府会不会对整个电力行业来讲，会有一个补贴，就像给石油石化公司这样的补贴。第二个问题是，我们有注意到，第一季度玉环的电厂，它的发电量，还有利用小时都比较低，那是不是这个电厂在雪灾的时候有影响？是不是有停产的现象？谢谢。 I have two questions. First question that yesterday we noticed that the Vice Chairman of State Electricity Regulatory Commission stated that for the implementation of the fuel cost pass-through policy, the government needs to take the CPI inflation into consideration. Do you think government will provide subsidies to gen cos, just like they provided subsidies to petrol and petrochemical companies? The second question is that we have noticed that in the first quarter of this year, Yuhuan power plants saw a decrease in both generation and utilization hours. Does that have to do with the snowstorm earlier this year? 第一个问题请刘先生回答，下一个问题请林亮先生回答。我们也非常关注近期电监会领导的讲话，相关的一些反应，也希望能够有一些补贴之类的措施，但是目前还没有。 We are paying close attention to the statements made by government officials recently, but for the time being, we haven't received any confirmation on whether the government will provide subsidies to the gen cos. 好，关于玉环一季度少发电的事件。的确，在一季度受到冰冻雨雪的灾害，玉环电厂少发电，按照计划少发6个亿。这主要是因为浙江是重灾区之一，继湖南以后，主要是在浙江。浙江的主要问题出在50万的线路受损上，而我们玉环它的送出只能靠50万线路往外送输出的，所以受影响比较大。 To answer your second question, the decrease in generation at Yuhuan power plant in the first quarter of this year was caused by the snowstorm early this year. As Yuhuan is located in Zhejiang province, it suffered from transmission constraints as the 500 kilovolt transmission line was very damaged during snowstorm. Therefore, due to both the extreme weather condition and also the transmission constraints, Yuhuan's power generation in the first quarter dropped by 600 million kilowatt hour. Wendy。谢谢。我还有一个问题想再补充问一下，那今年管理层看，玉环全年的利用小时的目标大概可以达到多少？ The follow-up question is: what is the management expectation in terms of the utilization hours for the full year 2008 for Yuhuan Power Plant? 我们预计玉环电厂能够完成公司下达的任务，利用小时度在6000左右。 We expect full year utilization of Yuhuan to be around 6,000 hours, which will meet our target for this year. 好，谢谢。 Thank you, thank you. [Foreign language] Mr. Zhou from Electron Capital, please go ahead. 关于管理，你们好。我有三个小问题。第一个关于煤炭采购，我想知道你们采购的时候有没有用到那种中间商那种方式采购，因为听说别的，就是你们同行或者算竞争对手，说他们不用中间商采购，所以煤价可能会相对低一些。所以这点想请您谈一下。然后第二个问题关于现在，因为所有原材料价格都在涨，不知道你们的新建电厂的成本是不是也相应提高，大概不知道会提高多少，对你们未来的盈利会有什么样的影响？然后第三个问题关于你们dividend，就是每股的这个分红。如果像今年，由于这种客观原因造成公司效益不是很好的话，请问你们每股分红的政策，就等于是明年的这个时候的决策会怎么样？就这三个问题，多谢。 Three questions. The first question is that for the purchase of coal, some of your peers said they do not want to let middlemen involved, therefore they want to buy directly from suppliers, therefore, the price they paid is relatively low. What is your practice in terms of coal purchase? Second question is that given that the raw material price has increased considerably, how does that translate into the increase in construction cost? How will that affect your overall profitability? The third question is regarding dividend per share. As we expect company's earnings to be quite poor for this year, therefore by this time next year, how will the management tackle the issue of dividend payments? What will the management think with respect to dividend payout? 第一个问题请刘先生，刘泽月先生回答。第二个问题请范夏夏先生回答。我先回答第三个问题。公司的分红的方针，应该来说是一个一贯的、长期的方针。现在因为第一季度刚过完，离全年完成任务的话，还有三个季度。所以现在谈具体的分红方案的话，还太早了一点。 To answer your third question, our dividend policy has been quite consistent and stable. We have just passed the first quarter of this year. We do have three more quarters to go before we reach end of this year. Therefore, it is a bit premature to talk about the dividend payout for 2008. 我们目前煤炭供应商里，大部分都是国有的大矿和上游有资源的能源公司，没有中间供应商。 At present, we purchase coal from mainly state-owned large coal mines and energy companies who have coal resources. We do not purchase from the middlemen or from intermediaries. 这个基本建设，现在新项目的成本确实在增加。这种成本增加一般分为两个部分，第一部分是由于现在的原材料以及人工成本的增加；第二部分是由于技术进步，我们现在采购的机组是最新的、技术比较领先的机组。那么这两部分的成本都在增加，我想大概我们影响成本估计在15%左右。你说到的影响以后的盈利能力问题，我想我们的机组从横向比较来说，在国内造价是最低的，所以我相信将来机组会有盈利。 On your question regarding raw material price increase, it is true due to the rise in raw material price, our construction cost has been on the rise, and such an increase may come from two parts. The first part is the increase in the price of raw material and labor cost. The second part comes from the technical advancement as we are building a large unit with advanced technology. Therefore, the cost per megawatt is much higher than our previous units. Overall, we are seeing a 15% increase in new construction. As to how will that impact our profitability, if we compare the construction costs of our existing units, we are the lowest. 好，多谢，我就这些问题。多谢。好，谢谢刘先生，谢谢您的参与。下一个提问来自德意志银行的唐先生。The next question comes from Deutsche Bank, Michael Tang. Mr. Tang，有请。黄总您好，我有两个问题。第一个问题是公司现在的煤炭的平均存货是多少天？第二个问题是公司在贷款的时候，原先银行对电力行业的10%的利率优惠，这一点最近有没有一些变化？谢谢。 Two questions. The first question is, what is the company's current average inventory for coal? Second question is that the banks used to grant 10% discounts in making loans to the power sector. Has there any change in your policy? 请刘先生回答第一个问题，请周女士回答第二个问题。目前公司的电厂煤可以用13天。 At present, our power plants reach about 13% coal stockpile. 13 days coal stockpile. 13 days. 由于国家实行从紧的货币政策，那么银行的贷款规模的增长受到限制，所以贷款利率的下浮的水平确实跟以前相比，幅度要比以前小一些。但是从我们公司的情况来看呢，第一，贷款额度还是能够满足我们公司的资金的需求。第二，大部分的贷款目前还是下浮10%，那么大概有40%这样的贷款，目前它的下浮幅度在5%到8%这个水平。谢谢。 Due to the implementation of tight monetary policy, government has kept credit growth under quite tight control. Therefore, we are seeing less favorable terms offered by commercial banks when we take out a loan. Our existing credit facilities are sufficient to cover our construction needs. Some of the loans we can still enjoy a 10% discount. For about 40% of our loans, the discount rate ranges from 5%-8%. 好，唐先生，还有吗？没有了，谢谢。好，谢谢你，唐先生。下一个提问是华夏基金的林青小姐。林小姐，有请。管理层您好。我听到公司说一季度的燃煤成本，就是单元燃煤成本的上涨幅度是25.92%。我想能不能给我们分拆一下，大概有多少是因为雪灾影响了局部电厂的煤炭价格上涨，还有多少，就是说我们可能需要一个从口径比较的一个数据，来判断公司全年的18%的涨幅是不是比较可行，或者说有什么样的下调的空间。这是第一个问题。第二个问题就是刚才周波女士也提到了，我们现在已经有很多电厂处于亏损，这样会不会影响我们对新建电厂的规划，会不会推迟新建电厂的投产的时间，以及对长远的我们实现2011年6000万千瓦的这个目标上面长期规划的一些影响吧。谢谢。 I have two questions. You mentioned earlier that unit fuel cost increased by 25.92% in the first quarter of this year. Could you give a breakdown of this number? How much was due to the effect of snowstorm? How do you justify your prediction of 18% increase in unit fuel cost for the full year? The second question is that Madam Zhou mentioned that large numbers of power plants are now making this due to higher coal price. How will that affect company's new construction? Will the company's 60,000 megawatts targets be affected given the current situation? 请刘先生回答第一个问题。雪灾对煤炭价格的影响应该说是全国性的。由于雪灾，由局部，由华中引起，以后造成现货煤的大幅上涨。所以从趋势上来看，可能是比较困难。可能从业务上来讲，就造成2月份的煤价明显地高于1月份的煤价，3月份的煤价在2月份的基础上略有回落。 The snowstorm caused major disruptions in coal supply. In February of this year, the snowstorm started in central China and spread to the neighboring provinces. The most affected parts were coal delivered to our powerful plants. It's kind of difficult to give a detailed breakdown as to which region suffered most impact. Talking about the coal price, in the first few months of this year, we saw significant increase in February compared with January. In March, the coal price decreased slightly compared with that of February. 关于50%的电厂亏损是否会影响我们电厂建设的目标，我认为不会。因为电厂亏损并不是没有电力市场。从我们一季度来看，我们发电量仍然增长了18.62%。亏损主要是燃料成本大幅度上涨，煤电联动没有联动起来所造成的。 On your second question regarding whether our capacity target will be affected due to the fact that over 50% of our power plants are making losses right now. We do not think that our target will be affected as we still have a quite robust demand for electricity, which is evidenced by 18.2% increase in generations in the first 3 months of this year. The losses made by some of our plants was due primarily to surging coal costs and no fuel price pass-through in the first 3 months of this year. 林小姐，听得懂？我再接着对燃煤成本这边再追问一下。就是说，能不能披露一下重点合同和市场合同比去年同比的涨幅？因为我觉得25.9%的涨幅还是比较高，我们想到底弄清楚一下是什么原因。谢谢。 To follow up on the question of coal price. We still think that 25.9% in the fuel cost is a bit out of our expectation. Could you talk about the price difference between key contracts and spot market price? 一季度燃料涨幅的主要原因，一部分是原煤采购价格的上涨，一部分是燃料热值的下降，还有一部分是海运费的上涨。 The major reasons that contributed to the significant increase in coal price were, firstly, the increase in the price of coal at mines. Second, the decline in the calorific value of coal supplied to our power plants. Thirdly, the significant increase in shipping freight rate. 重点合同上涨了19%，市场采购上涨了23%，再加上一些热值的下降。 In the first quarter of this year, key contract price increased by 18% on average, while spot price increased by 23% and heating value of coal decreased. 谢谢。好，谢谢你，林小姐。接下来的提问是由石富证券研究的张先生。This question comes from Mr. Anthony Zhang of Case Research. Mr. Zhang。对，高管先生好。我的问题是公司有没有通过介入上游的一些煤炭行业，比如说参股煤炭公司，或者是直接购买煤矿等等，通过这些措施来提高煤炭供应的保障能力和一个成本的控制能力。谢谢。 My question is that, has the company taken a noted interest in upstream business? For example, coal mines, or have you considered acquiring some of the coal mines as a way to ensure the security of supply and gain the ability of controlling the price relation? 请刘先生回答这个问题。公司在业绩会上已介绍了公司的发展战略，6543的5就是指的我们要在2010年可控煤炭的供应能力要达到每年的5000万吨。在这方面我们有这一个目标，还是有一个行动。 At our annual earnings meeting, we mentioned that our target is to reach 50 million tons per year controllable coal supply by 2010. We will be able to reach this goal. By achieving the target, we will be able to gain control of coal to ensure the coal supply to our power plant. 公司在07年的9月份和山西焦煤集团合作开发一年1000万吨的煤矿，这个项目已经在进行着启动，已有部分工程。 In September 2007, we signed contract to enter into investment agreement with Shanxi Jiaomei, which expects to produce 10 million tons of coal annually. This project has already kicked off and the supply has been gradually coming to our power plant. 另外，我们的母公司华能集团公司在内蒙、山西、河南、河北的主要产煤省，也有一些煤炭的开发项目，对我们也给予了一定的支持。 In addition, China Huaneng Group has invested in some coal mines in Inner Mongolia, Shanxi and Henan, and such investments have provided some relief to us in terms of coal supply. 张先生，你有其他的提问吗？我想问一下高管对今年下半年电煤价格的走势有何看法呢？ What is the management expectation for coal price in the second half of this year? 目前我们判断还是在一个高位运行。 We think coal price will remain high in the second half this year. 喂？喂？张先生？请说。喂？喂？你听得到吗？我听到，但是姑娘听不到。喂？喂？我的问题已经问完了，谢谢。好，喂？李先生，你这边听得到吗？听见。好的。我们下一个提问的是天相投资的李先生。是李小姐。李小姐，对不起。没关系。高管好，这么多问题过后，我有一个小问题问一下，就是08年公司的这些下属电厂大概有多少小机组计划被关停。谢谢。 Could you confirm how many small units under Huaneng Power will be shut down? 请卢总监现在回答一下。今年正常的上大压小项目预计关停有两台小机组，共40万千瓦。但是我们在推进上大压小的过程中，也积极在落实上大的项目。如果上大项目政府能够扩大批准的范围，我们还会继续扩大关停的机组数。谢谢。 For 2008, as part of the program of shutting down small units and replace them with large ones, we are planning to close down two small units with a combined capacity of 400 megawatts. But if the government grants more approval of the new construction projects under the policy of replacing small units with large units, we will close down more small units. 好，谢谢。好，谢谢李小姐。谢谢。好，下一个提问是摩根大通的李先生。JP Morgan, Mr. Edmund Lee, please. 你们好，我有两个简单的问题：第一个是第一季度的各个成本，燃料成本、维修成本、折旧，还有人工，这是第一季度的，可不可以提供一些具体的数据？第二，还是关于煤价的情况，想请问一下第一季度的现货跟合同的那个，如果看那个比例，就是量的比例，大概这个比例是多少？还有就是分别的那个价格，现货跟合同大概的平均价格是多少？ I have two questions. The first question is that can you provide a breakdown of expenses in the first quarter of this year, including fuel expense, maintenance expense, labor expense, etc. Second question is regarding coal. Coal price in the first quarter of this year. Could you provide the respective quantities of spot coal supply from spot markets and from annual contracts and their respective prices? 请Tony先回答第一个问题，刘先生回答第二个问题。 2008年第一季度燃料是CNY92.9亿，维修费用CNY3.6亿，折旧CNY17.5亿，工资福利CNY5.04亿，其他费用CNY4.48亿，财务费用CNY5.91亿，管理费用CNY4.02亿。第一个是燃料，第二个是？维修。 In the first quarter of 2008, fuel expense was CNY 9.251 billion. Maintenance expense was CNY 360 million. Depreciation, CNY 1.75 billion. Labor, CNY 540 million. Others, CNY 448 million. Finance expense was CNY 597 million. Lastly, administrative expense was CNY 402 million. 第一季度燃料采购的比例，重点合同占60%，现货采购占40%。重点合同的原煤采购价在450元每吨左右，现货采购在580元每吨左右。 In the first quarter of this year, 60% of our coal requirements was met by key contracts, with the remaining 40% of coal requirements met by spot market purchase. The average key contract price from a key contract was CNY 450 per ton, while the spot market price was CNY 580 per ton. 还有一个跟进的，就是刚才管理层说三月份的煤价跟二月份比较是降低了一点点，那四月份的情况是否还是跟三月份相比还有降低或者只是持平这样的？ Just on the mention that coal price in March decreased slightly compared with that of February. What is the situation for April? Is it flat or is there a decrease compared with that of March? 从四月份上中旬的情况看，可能会略有降低。 Based on the situation in the first couple of weeks in April, we expect a slight decrease in coal price from the level of March. 谢谢。好，谢谢你，李先生。下一个提问的是OC Capital的Ken Chi，Chi先生。管理层你好，可以听见吗？听得到，请说。管理层你好，我想请教一下关于煤炭供应方面的问题。最近有一些报道说一些电厂的煤炭的存货又出现了比较紧张的局面。那么刚才听管理层说，现在我们的存货大概是13天左右，那么跟比如说三月份比较的话，你们有没有看到煤炭供应的一个紧张？另外关于运输方面，像海运和汽车以及铁路方面的运力的话，当然华能会没有问题，但是会不会看到其他的一些运输瓶颈，就是4月比3月的增加的情况，谢谢。 We've seen some reports that some power plants have encountered the problem of a tighter supply of coal. As earlier you mentioned that the company keeps about a 13-day coal inventory right now. Do you see any sign that the coal supply is getting tighter compared with the situation in March? The other question is that, are you facing any problem in terms of coal transport, either by trucks or by ships? 我们也非常高度地关注当前形势的发展。目前确实出现局部的燃料供应紧张。 We are paying close attention to the issue of coal supply. It is true that in some regions, the supply is getting tighter. 特别因煤炭原地区的电厂因为燃料上岛，汽车运煤造成一些困难，但华能的海运是有保障的。 In some coal-producing regions, due to the sharp increase in the price of fuel, some problems are being encountered with respect to the transport of coal by trucks. But for Huaneng Power, our coal shipping capacity is assured. 好，谢谢。好，谢谢你啊，谢谢你金先生。下一个提问是UBS的Danny Huang，黄先生。关于成潮，我有两个问题，一个是关于煤价的，就是经季度的单位燃料成本上涨25.92%，然后管理层也预计下半年的煤价可能还在高位运行。那我先请问一下管理层将怎么去达成全年单位燃料成本上涨18%的目标呢？另外第二个就是关于之前提到今年会关停两台小机组，请问具体是哪两台呢？谢谢。 I have two questions. The first question is that in the first quarter, unit fuel cost increased by 25.92%, and management mentioned that you expect coal price to remain high in the second quarter. How do you keep your promise of keeping the interest in unit fuel cost for the full year of 2008? The second question is that the company is going to close down two small units, which units or which power plants are you referring to? 请原先的回答第一个问题，另外原先的回答第二个。从目前的重点合同执行情况来看，随着合同的全面的签订，合同的兑现率会在一二月份的基础上逐步的提高，这样使重点合同的价格能够体现出来。 As we continue to sign more key contracts for coal supply, we expect fulfillment rates to continue to go higher compared with the level of January and February. Therefore, the price of key contracts will help to mitigate the interest in overall coal price. 另外，在18%涨幅的测算里，我们考虑了一定量的市场煤价的上升和海运价格的上升。 Secondly, when we put forward the 18% projection for unit fuel cost, we took into account the factors of coal price rises and also the interest in shipping freight rates. 所以我们也相信全一年一定会有一些季节性的、区域性的一些上下的波动，今后还会有一些机会。另外我们也努力在扩展一些新的煤源。 We think that for the end of the year, we will see some seasonal fluctuations in coal price. On our part, we will also make effort to seek more diversified coal sources. 关于关停机组的情况，我们目前计划是在山东关停一台，在江苏关停一台。其余的按照刚才说的，就是根据实际情况再做安排。 The two small units we are planning to shut down is as follows: one unit in Shandong province, the other one is in Jiangsu province. As we said earlier, based on actual situation, we may plan to close down more small units. 好，谢谢。黄先生。好，谢谢。好，谢谢你啊，黄先生。下一个提问是华安基金的王唯先生。王先生。各位管理层你们好。我想问一下，现在就目前情况来看的话，发电的收入不足以弥补扣除折旧这部分费用、其他的变动的成本和费用，这部分占电厂占总体电厂个数大概百分比是多少？ The question I want to ask is that for the company, some of power plants with the depreciation and variable cost is more than the revenue generated by the power plant. How many of such power plants currently does the company have right now? 请这位回复一下。如果按照电厂的个数来算的话，是占53%。 53% above power plant is depreciation. 周总，不好意思，我问的是后置折旧这部分，就是这个电厂运营下来是有负的现金流的这种。负的现金流的？对。没有。现金流不会是负的。呃。没有盈利不等于就是负的现金流。对，您的意思就是出现经济账面亏损的比例是53%，然后出现现金亏损的暂时还没有。没有。好，谢谢。好，谢谢你。另外还有其他问题吗？没有。好，谢谢。下一个提问是CICC的中国国际金融的陈静华，请问。管理层你们好，我有两个问题，第一个就是我们2008年全年的发电量的计划状况中途会是怎么样的？第二个是关于玉环电厂。玉环电厂在一季度的时候，因为它主站的原因，它发电量受到限制，那么限制到现在，就是现在这个问题解决没有，那么到二三季度或者说今后一段时间，这个电站会不会补偿影响到它全年的一个电量计划。那第二个是提到我们前面的建造成本在国内是比较优秀的，那我想问一下现在我们新进的一个电厂，它平均的一个千瓦的造价单位大概是怎么样的？谢谢。 I have three questions. The first question is what is company's generation target for 2008? Second question, D1 power generation in the first quarter decreased considerably due to some of the issues. Have these issues been resolved? Will there be any increase in output in the second and third quarter of this year? The third question is that what is the current per kilowatt cost of constructing a new power plant? 现在回答第一个问题，下一个先回答第二个问题。关于全年发电量的预计，公司从一季度可以看出一些征兆和规律来。一季度公司的发电量利用小时高于当地的水平，同比增长高于全国统调水平。 If you look at the company's generation numbers in the first quarter of this year, and also the utilization hours of our generation units, they are higher than the level of their respective provinces, and they are also higher than the nationwide average. 第二个问题，关于Yuhuan受限的问题，现在正在逐步得到解决，估计在近期内会有很大的好转。 To answer your second question about the complaint in generation, which experienced by Yuhuan, this issue has gradually been resolved and the situation is improving. 公司的基本建设工程按照2007年的造价水平衡量，大约在CNY 3,300每千瓦。 The cost of construction in 2007 was CNY 3,300. 这位小姐你有跟进的问题吗？没有了，谢谢。好，谢谢。下一个提问是长城证券的张宁女士，张女士请。管理层你们好。我有两个问题想请问一下，一个就是咱们在2007年3月份左右收购了清远厚大石能源。那么就目前来看的话，我想了解一下它盈利的一些情况和一些财务的数据，以及对我们的华能国际的影响。第二个就是我觉得虽然它相比整个华能国际三千两百多万千瓦的这个装机容量显得是有一点小，但是我们想了解一下，在08年或09年有没有什么后继的一些收购计划。另外的话，我们有没有考虑去收购一些成本相对比较独立的，比如说水电类的这种企业，能够规避这个煤价上涨的一些影响。那么还有就是想问一个问题，我们目前应该说全行业都面临着亏损，有很多小的电厂应该都已经停产避亏了，那么是不是就是说相对能够让出一定的电力技术的空间，对我们的利用小时数可能会有一定的超预期的提升。好，谢谢。 I have three questions. The company acquires Tuas Power in March. Could management provide some information as to the profitability of Tuas Power? Will the company make any new acquisitions in 2008 and 2009? The second question is the company considering to acquire some hydropower plants as a way to mitigate the impact of surging coal price? The third question, given that the whole power generation sector is facing great difficulties, and as some of the small power plants have already been shut down or curbing their generation to avoid making big losses, will there be more room for the company to increase power generation? Can we expect some positive surprise in terms of utilization hours? 周慧女士回答第一个问题。大士电厂这两年每年的税后净利润都是在1亿新币以上。2006年是SGD 1.04亿，2007年是SGD 1.77亿。 In the last two years, the net profit of Tuas Power has been about SGD 100 million. In 2006, net profit was SGD 104 million. In 2007, net profit was SGD 172 million. 我们现在正在把大士能源从集团往股份公司注资的过程中，我们相信注资完成以后，对股份公司的价值会有所提升。 Right now, we are in the process of injecting Tuas Power into HPI. After the completion of this transaction, we expect this transaction to be earnings accretive to HPI. 关于其他的收购项目，我们对其他可能的收购项目也在进行跟踪。这里边也包括水电项目。我们一贯的方针还是开发和收购并重，这并没有变化。 As to other acquisition opportunities, we are currently following and studying some of the acquisition opportunities, and the party that may include hydropower plants. Our strategy has always been to place equal emphasis on acquisition and greenfield development. There's no change in our growth strategy. 关于关停小机组会让出一些发电的空间，增加利用小时。这个应该是这么一个情况。但是现在的亏损并不是因为利用小时低所造成的。公司一季度的发电量、利用小时发电量还是增加的，发电量是增加了18.62%。现在的亏损主要是燃料成本的大幅度增加。 The closing down of small units will certainly help to increase power generation at the company's existing units. However, the losses made by some of power plants were mostly caused by fuel price, not by the hours. As we can see that in the first quarter of this year, power generation increased by 18.62%. 张女士，你有其他的提问吗？你好，想再问一下，我们像这个电力亏损，那么有没有可能通过像类似于常年那样，用出售金融资产来平滑业绩？还有就是您刚才提到的收购水电，你收购的装容量大概有多少？这个。 The company takes some measures to smooth out the earnings decreased by selling some of the financial assets. With respect to acquisition of hydropower plants, what is your expectation in terms of megawatts? 关于是否会出售金融产品来增加盈利的问题，我想这是一个值得考虑和研究的问题。 On whether to sell financial assets to improve, this is the issue we need to consider. 关于这个水电收购资产的容量，现在还没有具体的情况供我们披露。 On the question of how much hydro capacity we are planning to acquire, right now, we don't have anything to disclose. 我们没有问题了，谢谢。好，谢谢你，张女士。下一个提问是光大保德信基金的侯斌小姐。喂，管理员你好。我有几个问题想问一下，第一个问题就是，除掉变动费用当中有公司煤炭和管理费用这一块，那么销售的话有电费这一块，会不会有这种情况，就是我们为了公共职能，我们是亏损的，但是还要发电。如果有的话，这样的电厂大概比例是多少？另外，如果没有这样的电厂的话，那我想了解一下，我们现在发电状况最差的电厂的状况是什么样的？谢谢。 My question is that in terms of variable costs, if we take a few labor costs and other costs, what is the percentage of power plants right now making losses? As a public company, you have to generate electricity despite making losses. What is your comment on this question? 请回应。你刚才说的这种情况在我们公司目前还是不存在。那么我们所有的电厂，如果就边际利润来说，边际利润最低的也在每千瓦时35块钱。谢谢。 Of all the power plants we own, the worst performing power plants still have a margin of CNY 35 per megawatt hour. 侯斌小姐。谢谢，没有了。好，谢谢你。下一个提问是群益国际的邱仲容先生。管理员你们好。我这边有个问题就是目前公司的在建项目和一些收购的项目比较多，我不知道公司在资金方面有没有什么样的安排。还有另外就是目前公司的资本负债其实也还是处于一个比较高的位置，不知道公司有没有在股權方面融资的一些计划或者安排？谢谢。 Given that company has a large construction program, while continuing to have more acquisitions, what kind of arrangement do you have with respect to capital expenditure? As the company's debt ratio is already quite high. Do you have any plans for equity financing? 请回应一下。目前对我们公司来说，资金的来源渠道还是比较畅通的。那么昨天董事会已经通过决议，继续发行40亿的公司债，去年我们已经发行了60亿，今年我们下半年会继续发行。另外，我们在今年还会发行100亿的短期融资券。那么到现在为止，我们银行的授信额度也还有260亿。那么另外我们还有一些其他的，比如说委托贷款等等这些渠道。所以资金应该说是没有什么问题。那么从负债率来考虑，尽管我们目前的负债率已经达到了58%的水平，相比较前几年的水平有所提高，但是从国内的电力行业来说，我们目前仍然处于一个最低的负债率的水平。所以到现在为止，我们没有考虑过增加融资的计划。 We have quite smooth channels for raising capital. Yesterday, the board passed a resolution for the issuance of CNY 4 billion of corporate bonds. Last year, we issued CNY 6 billion of corporate bonds. In the meantime, we are planning to issue CNY 10 billion of short-term financing notes. We also have about CNY 26 billion of credit facility with commercial banks. We also have some other financing alternatives. Therefore, we have no problem with respect to raising debt capital. Right now, the debt ratio of the company stands at 58%, which is much higher compared with the level of previous years, but we still have the lowest debt ratio among China's power companies. Therefore, we have no plan for equity financing in the medium to near future. 徐先生还有没有其他提问？谢谢。没有了。好，我们最后一个提问，是中银国际的岳小姐。岳小姐，请。好，谢谢。我想问一下刚才那个税的问题，如果这些现在是亏损的电厂以后有盈利的话，这个loss，就tax loss，可不可以减低以后要交的税？这是第一个。另外一个，就是想问一下，刚才提到现在你们公司集团没有一家电厂是边际利润，是没有边际利润的。但是假设以后煤价继续涨上去，如果有电厂出现发电会有边际利润亏损的情况，你们的策略是去关停这些电厂，还是会继续运行呢？好，谢谢。 Question of tax rates. If some of power plants turn from red to black in the future, can they use their loss to deduct their losses? The second question is that you mentioned earlier, right now there's no power plants under Huaneng having a negative EBITDA margin. If coal price continue to rise, some power plants may start to report negative EBITDA margin, then will you shut down that power plant or will you continue to run the power plant? 请孟先生回答第一个问题。亏损电厂的抵税是在五年内有效。 Tax deductibility for loss-making power plants has a five-year validity period. 关于第二个问题，因为这个事情还没有发生，所以我现在对它进行评论也不太合适。 Your second question actually is a hypothetical question. It would be inappropriate to comment on such a question. OK，岳小姐。好，谢谢。好，今天的提问差不多了。黄副董事长，你还有没有一些补充的话要说？今年一季度，确实由于煤炭大幅上升，一点都没有联动，对公司的经营造成了一定的困难。但是，像我开始说的，展望全年，公司新的经营班子仍然有信心克服困难，在生产经营、资产运作等方面，千方百计地来做工作，争取完成全年的任务。 In the first quarter, due to surging coal price and no pass through, we have encountered different difficulties in our operations. But looking ahead, under the leadership of our new management, we are confident that we will be able to overcome these difficulties and attain our targets with effective production and operations. We will do whatever we can to weather the storm and to reach better performance. 最后，感谢大家对华能国际一贯的关心和支持。 In conclusion, I would like to thank you for your consistent support and also your interest in our company. 谢谢. Ladies and gentlemen, that concludes today's telephone conference. On behalf of Huaneng Power International, thank you very much for joining us