Earnings Call: Q2 2008

Aug 28, 2008

Huaneng Power International, I would like to thank you for joining today's telephone conference on the company's year 2008 interim results. I am Raymond Siu from Veurite and Logan, and I will be your moderator for this conference. [Foreign language] We are very pleased to have a number of senior management members of the company joining us today. Let me introduce them to you one by one. 今天我们很高兴华能国际好几位领导跟我们在一起，我先介绍他们一下。Vice Chairman, Mr. Huang Long. 副董事长黄荣先生。嗯。总，你好。大家好。 President, Mr. Liu Guoyue. 总经理刘国跃先生。刘总，你好。大家好。 Vice President, Mr. Fan Xiaxia. 副总经理范佳佳先生。范总，你好。嗨，大家好。 Company Secretary and Vice President, Mr. Gu Biquan. [Foreign language] 你好，你好。 Vice President, Mr. Ye Xiangdong. 副总经理叶江东先生。叶总，你好。大家好。 Vice President, Mr. Lin Gang. 副总经理林刚先生。林总，你好。你好，大家好。 Company Ms. Zhou Hui. 总会计师周慧女士。周总，你好。你好，大家好。 Chief Engineer, Mr. Zhao Ping. 总工程师赵平先生。赵总，你好。大家好。 [Foreign language] And we are very pleased to have Mr. Jin Xin, the company interpreter, to help us to interpret. We will first have Vice Chairman Mr. Huang Long, to walk you through the results, and then it will be the Q&A session for you to raise questions. [Foreign language] I would like to pass on to Mr. Huang. [Foreign language] 女士们，先生们，大家好，欢迎大家参加华能国际2008年中期业绩电话会议。昨天公司召开了董事会，随后公布了业绩。今天通过电话会议，希望能与境内外的投资者和分析师，就公司2008年中期经营情况和今后的业务发展进行交流。 Good afternoon, ladies gentlemen. Welcome to Huaneng International 2008 Interim Results Conference Call. Yesterday, the company convened a board meeting and subsequently announced its operating results. Today's conference call would like to discuss with investors and analysts, both home and abroad, about company's operating results for the first six months of 2008 and the company's future business plan. 2008年上半年，按国际财务报告准则计算，公司及其子公司的合并经营收入为人民币307.37亿元，比上年同期增长32.81%。公司权益净亏损为人民币5.44亿元，每股亏损为人民币0.05元。 For the first half of 2008, under International Financial Reporting Standards, the company and its subsidiaries achieved consolidated operating revenue of CNY 30.737 billion, representing an increase of 32.81% over the same period of last year. Net loss attributable to the equity holders of the company was CNY 544 million. Loss per share was CNY 0.05. 按照中国会计准则计算，公司及其子公司的合并经营收入为人民币307.91亿元，比上年同期增长30.83%。公司权益净亏损为人民币4.70亿元，每股亏损为人民币0.04元。 Under Chinese accounting standards, the consolidated operating revenue of company and its subsidiaries amounted to CNY 30.791 billion, representing an increase of 30.83% over the same period last year. Net loss was CNY 470 million. Loss per share was CNY 0.04. 今年上半年，公司境内各运行电厂按合并报表口径累计完成发电量914.48亿千瓦时，比去年同期增长13.43%。另外，2008年上半年，新加坡大士能源有限公司归属于公司的发电量为27.86亿度。 During the first half of this year, the company's domestic operating power plants achieved total generation of 91.448 billion kilowatt hour, representing an increase of 13.43% over the same period last year. In addition, for the first six months of 2008, Tuas Power Ltd of Singapore achieved power generation, which was attributable to the company, was 2.786 billion kilowatt hour. 截至2008年7月31日，公司权益发电装机容量达到 [Foreign language] As of July 31st, 2008, the installed capacity on aggregate basis of company amounted to 36,993 megawatts. Controllable installed capacity reached 14,389 megawatts. [Foreign language] The key tasks of the company in the second half of this year include: to accurately reflect to the state the current operating conditions of power generating sector and strive for improvement of operating environment; to strengthen optimization of power generation mix, make best endeavors to ensure fuel supply and drive to enhance the fulfillment rate of contracts and control market purchase prices; to promote energy saving emission reduction work in full force, and to activate commencement detailed measurement of energy consumption units and optimize operation of generation units; to strengthen internal management and to effectively control financing costs; to actively push forward renewable work projects, and to further optimize power plant structure and adjust their deployment; and to strengthen the management of infrastructure construction, ensuring safe, stable and economical operation of power generation units, so as to meet the requirements of energy saving environmental friendly generation units. [Foreign language] With that, my colleagues and I will be more than happy to take your questions. Thank you. 黄副董事长，谢谢。And now it's time for everyone to ask questions. If you would like to ask a question, you may push one on your telephone pad. You may also push star and zero if you need any operator assistance. 现在是欢迎大家提问的时间了。如果要提问的话，请你在电话机上按1。如果大家需要电话公司协助的话，请按星加0。按1是提问，星加0是电话公司协助。我们第一个提问是Mr. Pierre Lau。刘先生，有请。管理层你们好，我是刘显达，花旗银行的。我有两个问题，第一个问题是我想了解公司管理层现在估计今年08年整年，单位燃料成本上涨的情况会是怎么样？第二个问题，我想知道公司现在对08、09、10年最新基本建设投资的数据分别是怎么样？谢谢。 I have two questions. The first question is: could the management share with us the guidance for the unit fuel cost increase for full year of 2008? The second question is: could you talk about the CapEx plan for 2008, 2009 and 2010? 好，这两个问题请刘辉总经理回答。你好，我现在回答这两个问题。一个今年08年全年的单位的燃料成本的涨幅，我们认为，鉴于今年前七个月的情况，因为一季度总体的影响力还不错，而二季度的不是很好。所以我们想可能全年的水平，它的涨幅不会低于上半年成本的涨幅，大约在40%左右。For the 2008 unit fuel cost increase. In light of the situation in the first seven months of this year, where in the first quarter fuel contract fulfillment rate was relatively satisfactory, while in the second quarter the fulfillment rate was less than ideal. We expect the unit fuel cost increase for the remainder of the year to be not lower than that of the unit fuel cost increase we saw in the first half of this year. Overall, we expect unit fuel cost increase to be around 40%. [Foreign language] For the capital expenditure in 2008 and 2009. In 2008, the CapEx is CNY 26.9 billion; in 2009, CNY 29.7 billion. 其他人有其他提问吗？没有了，谢谢。好，谢谢你。谢谢。Next question comes from JP Morgan's Mr. Edmond Ni。下一个提问，请问大通的你先生。管理层你们好，我有三个问题。第一个还是关于燃料成本的，想请问一下七八月份其实有没有数据的说你们的单位燃料成本大概是多少？跟上半年比较有没有继续的上升？还有也是燃料成本的，关于兑现率，可不可以介绍一下第一季度、第二季度，还有最近的情况大概是怎么样？这个是第一个问题。第二个问题关于电价调整的展望。第三个问题是在上半年的时候，大概有多少个电厂是有利润的状况的。谢谢。 I'm going to ask three questions. The first question is a follow-up on unit fuel cost. Could you provide the unit fuel cost for July and August, and how does that compare with unit fuel cost in the first half of this year? You talk about the contract fulfillment rate in the first quarter and second quarter. Could you talk about the exact fulfillment rate in first quarter, second quarter, and in more recent months? The second question is the company mentions also tariff hike going forward. The third question is how many power plants were actually profitable in the first 6 months of this year? 第一个问题请刘锐先生回答，第二个问题请林刚先生回答，第三个问题请周慧女士回答。关于七月份的煤炭的供应情况看，应该说还是在六月份的基础上，还是在继续地上涨，大概涨幅在百分之几左右。兑现率总体来讲，一季度的兑现率还是比较好一些。一季度的兑现率，我们总的在重点合同大概在80%以上。二季度的兑现率略差一些，在70%左右。 In July, we saw a 9% increase in coal price month-on-month. In the first quarter, contract fulfillment rate was around 80% for the key contracts. In second quarter, the fulfillment rate inclined to around 70%. 电价的情况，为了防止煤炭和电力价格的轮番上涨，国家发改委分别于6月29号和7月29号出台了电价的调整决定。这两次决定同时在6月19号以后，也同时出台了对煤炭的限价的要求。我们预计在下半年的时间，国家有关部会继续地高度关注煤价和电价的涨幅情况。 To prevent a situation where coal price continue to rise, our tariff continue to rise in tandem with coal price. The government authorities announced policies of tariff hike and price cap for coal respectively on June 29th and July 29th. For the remainder of the year, we believe that government policies will continue to closely monitor the situation. 周慧。目前公司有16家全资电厂，13家控股电厂。那么如果按电厂的个数来算的话，下半年亏损的19家，占65%。 Right now, we have 15 wholly owned operating power plants and 13 partially owned operating power plants. During the first 6 months of this year, 19 power plants reported positive profits, which account for 65% of the company's presenting fleet. 你现在还有跟进问题吗？有的。其实刚才说七月份的单位燃料成本，有没有每兆瓦时的数据？还有就是新加坡有没有上半年净利润贡献的数据。净利润贡献。 Could you give us the kilowatt hour unit fuel cost for July? Could you talk about the profit contributions from Tuas Power? 请周慧女士回答。新加坡下半年中新电力的盈利是1亿0500万。那么如果再加上公司本部由于收购大士业的股本金7亿8800万美元所产生的汇兑收益和利息相比以后还有1亿2000万，那这个价值就是1亿2350万。人民币是吗？人民币。单位燃料成本。 The profit contribution from Sanmenxia Power was CNY 105 million, plus the exchange gain for the loan we borrowed to finance the acquisition. The total amount of profit contribution was CNY 225 million. The fuel cost in July was CNY 289 per megawatt hour. 谢谢。谢谢你，李先生。This question comes from Mr. Tian from Great Wall Fund。下一个提问是长城基金的田先生。田先生，有请。田先生。田先生你在吗？喂，你好。你是田小姐。田小姐，对。对不起，田小姐，有请。我想问一下，上半年公司的合同煤价和市场煤价分别具体是多少？然后合同煤和市场煤的比重大概是什么样的比例？就是具体的每吨煤的价位。能回答一下吗？然后第二个问题就是，听到您这个一季度的一个电话会议，谈到存货在一季度的时候还能维持到13天的这个程度。那经过上半年后几个月的煤价的上涨，现在还能达到13天吗？然后刚才您说的七月份的单月煤价我有点没听清楚，是不是890元每吨？我就是三个问题，谢谢。 Three questions. The first question is, could you give a breakdown of the contract coal supply in the first six months of the year and their respective prices? Second question is, in the first quarter conference call, the company stated that it kept about 13 days of coal inventory at its power plants. Given that coal price has risen so much, could you still be able to keep a 13-day coal inventory right now? The third question, I wasn't exactly sure about the coal price for July you talked about earlier. Could you clarify that? 请刘先生回答一下。今年1到6月份，重点合同的煤价是460元，是原煤到厂含税价，市场采购是609元每吨。截止到目前，公司的存煤的数量还是能满足13天以上的用量。因为最近的煤炭市场略有一些缓解。 In the first six months of this year, the average key contract coal price delivered to our power plants was CNY 460 per ton, while spot price on average was CNY 609 per ton. Right now, we are still able to keep more than 13 days of coal inventory at our power plants, because of slight easing in coal supply market. The fuel cost for July was CNY 289 per kilowatt hour, per megawatt hour. 好，谢谢。好，谢谢你，田小姐。好的。你没有其他问题了吗？没有了。好，谢谢。 Jimmy, do we have any other questions lined up? Hello? Jimmy? Operator? 有了。好的。 The next question comes from Mr. Wang from Huaneng Fund. 下一个提问是华能基金的王先生。喂，你好。王先生，有请你。我想问一下，脱硫给的电价补偿是1分5，那么我想知道，现在煤炭也涨价，脱硫的每度电的成本现在是多少钱？那么国家有没有可能在未来的半年到一年内调涨脱硫这个补偿？就这个问题，谢谢。 This is regarding the desulfurization units. Right now, the government policy is to grant CNY 0.016 per MWh add-on to the tariff for the units that have been installed with the desulfurization facilities. Given that coal prices have risen so much and the cost of installing desulfurization facilities has also been increasing, do you think there's a likelihood in the next 6-12 months the government will raise the incentives? 请刘先生回答一下。目前执行的脱硫电价仍然是每度电1分5。但是也确有一部分电厂由于最近的煤中的含硫量高，造成实际的成本大概在2分钱左右。最近我们也在积极向国家有关部门在反映，也得到了一些比较积极的理解和回应。 Right now, the government policy is still to grant CNY 0.016 per kilowatt hour interest for these desulfurization units. It's true that due to high sulfur content. Cost of these positions can be as high as CNY 0.02 per kilowatt hour. We are appealing to the government authorities for the understanding and so far are positive. 王先生。哎。大家有跟进的问题吗？没有，谢谢。好，谢谢你王先生。下一个提问是国信证券的陈俊华女士。关先生您好，我有几个问题想请教一下。第一个就是上半年我们公司的平均标煤价格是怎样的？还有第二个就是您前面提到了7月份单月它的单位燃料成本上涨了9%，这个是环比还是同比？我们7月份入炉的标煤单价状况是怎么样？第二个大的问题，主要就是关于折旧方面。我们上半年的发电量增长了18%，但是我们的折旧却只增长了4.9%。是不是我们有一些基础折旧到期或者说是其他的原因？谢谢。 I have a couple questions. First question is, could you provide the average standard coal price for 6 months of this year? Earlier you talked about 9% increase in coal price in July. Is that a month-on-month increase or a year-on-year increase? The other question is that, in the first 6 months of this year, generation increased 13% while depreciation only increased 4.9%. Could you talk about the reason of that? 第一个问题还是请刘悦先生回答，第二个问题请周先生回答。这个上半年公司累计的标煤单价是730元。刚才说的采购的，就7月份比6月份的采购的单价是环比上涨了9%。 The average standard coal price for the first 6 months of this year was CNY 730 a ton, and the 9% increase in coal price in July was the month-on-month increase. 公司的折旧采用的是分类折旧的直线法，不是工作量法。所以折旧的增减比例跟电量的增减比例是没有一定的关系。 Because company use a straight line method for depreciation, therefore there is no direct correlation between generation output and depreciation amount. 那么在当中，老机因为有的是到期了，所以减少了折旧2亿9。新机因为机组投产以后折旧增加了3亿4400万。另外中新电力大士能源增加1亿2000万。 Because the depreciation of the power plants, we use categorized depreciation method for the existing power plants. For some older generating units, some of them the depreciation. For the newly operated units, depreciation in the first 6 months of this year was CNY 344 million, while the depreciation of Sanmen Power was CNY 122 million. 陈女士。好，谢谢关先生。我还有两个问题，就是7月份我们的入炉标煤单价状况是怎么样子的呀？还有一个就是，在我们的财报的第97页有一个按国际准则合并的利润表，其中有一项是电力采购成本。我想问一下，这电力采购成本主要是什么？因为在以前的年报当中并没有看到这一项。 Could you provide the standard coal price for July? The other question is, in the company's financial statement under IFRS, there is item called power purchase cost. Could you clarify what that exactly is? 第一个问题，请刘先生回答一下。第二个问题，周先生。到7月底的标煤单价是759块钱每吨。谢谢刘先生. At the end of July, the standard coal price was RMB 759 per ton. 这个电力采购成本主要是大士能源的零售部分这个成本。 The power purchase expense refers to the cost incurred by the retail arm of Chuan Power. 因为大士的55%是固定合同，45%应该是市场的价格，那么这部分由公司自己零售，所以有电力采购成本。 Because of the total outputs of Chuan Power, 55% is sold through vesting contracts, while the remaining 45% is sold through its retail arm and market bidding. 陈小姐。你好，谢谢管理层。好，谢谢你的参与，谢谢。下个提问是光大保德信基金的侯斌先生，侯先生有请。喂？侯斌在吗？光大的。侯先生？Operator？ Raymond？侯先生他走了。他走了。中国人保的梁旭金呢？就是可能我想请教几个宏观一点的问题。你是梁先生吗？哎，我是。欢迎你，欢迎你。你好。第一个就是请问一下公司对09年经营情况怎么看？就是说能否说扭亏，或者说如果有盈利的话，有多大的恢复？第二个是，比如说像公司的在消化这个成本方面，像利用小时数这一块的改善还有多大的空间？如果这一块有改善的话，能够应付多少煤炭成本的上升？然后第三个就是想了解一下，对电网的这一块的看法，就是现在电网的中端是物价了，那它这个压力最后的话会怎么释放出来？我看到有的数据说，如果电网在考虑它地震的时候的资本开支，还有其他的一些每年投资的话，那它这个压力也蛮大的。想听听公司对这一块的看法是怎么样。好，谢谢。 I have several macro questions to ask. The first question is how do the management view the operating conditions in 2009? Do you think the company will return to profitability? The second question is on the company's ability to absorb cost increase. Do you see any possibility that utilization will improve? The improvement in utilization, to what extent help the company to see improvement in the margin? The third question is how do you see the grid company, and how do you see they pass through the increase in tariffs to the end users through retail tariff adjustments, or how do you see the issue of the large CapEx incurred by the grid company is due to the earthquakes and also the need for the upgrade of the existing transmission system? 好，请刘副总现在回答一下。这三个都是比较大的问题，我就公司的一些基本的情况，我想简要地回答一下。从09年看了公司的整体，无论我们所服务的省市的区域，无论是我们公司内部机组的正常的运营，一切都是正常的。关键在于煤炭供应的情况。鉴于目前中国国内煤炭供应的供需不平衡的问题，我们认为煤炭的供应短时间内得不到一些根本的改善，将来还是影响公司经营的一个很大的问题。 Talking about the outlook for 2009. We believe that the generation unit of the company will continue to operate normally and the regions that we serve will continue to be in a state of development. The basic deciding factor is the coal demand and supply dynamic. Right now for the short term, we do not see the current coal shortage situation to ease significantly going forward. 虽然我们也预测了可能09年电力需求的增幅有可能还是会有一些回落，但是由于公司的服务的区域和公司机组的节能环保的优势，我们还是坚信我们机组的利用小时还是能够大于全国的平均利用小时。 We do anticipate some slowdown in power demand growth next year. But given the broad geographic coverage of our generating units and the excellent environmental-friendly performance of our generating units, we still believe the added utilization of the units to be higher than the nationwide average. 这次8月20号的调整电价是调整了上网电价，没有调整销售电价，所以电网公司确实也遇到了很大的经营困难。我们相信，因为国家对电力行业的问题也是充分地了解，在有条件的情况下，一定会继续出台这个价格。 The most recent tariff hike, which took place on August 20, only raised on-grid tariffs, while leaving the retail tariffs intact. We understand that the grid company will face some difficulties in their operations. In the interim, we think that government is clearly aware of the current situation, and they will continue to take steps to address the current imbalance. 好，谢谢老郑。梁先生你有没有其他的提问？可能还得问一下，会不会出现这种情况：因为电价涨了，所以煤这块它更有涨的理由，你还可以承受更高的煤价；煤要涨了，电又变成它涨价的重力，会不会出现这种比较困难的情况？ Is there any possibility that we may enter a vicious circle where the tariff has been increased, then the coal suppliers will use that as excuse to raise coal price further, and with the further increase in coal price, then the generators will want to ask government for another tariff hike? 我们不希望看到这种情况。 We certainly do not want to see that happen. 好，梁先生。没有了。好，谢谢你的参与。好。下一个提问是中信证券的吴飞先生。吴先生，有请。各位观众朋友大家好。我有两个问题，一个是能不能介绍一下目前我们在建机组及规划情况，就是在08年底到10年的情况。然后另外，在目前这种经营环境下，我们对于新建机组的投产速度，包括未来投产方面有没有一些放缓，这样一些考虑。第二个大的问题是，在目前这种情况下，我们以前一直是坚持以火电为主，那么未来几年我们是否会考虑重新参与水电的建设，以及对煤炭的一些投资的一些想法？谢谢。 I have two questions. The first question concerns the company's construction project. Could you talk about the company's plan for 2008 through to 2010, especially regarding the commencement of new generating units? Do you think that the company will want to slow down the pace of construction in light of the current condition? The second question is that the company has always been heavily relied on coal-based generation. In light of the current tight supply of coal, would company reconsider its strategy and focus more on other alternative energy productions, such as hydropower generation? Also, will the company look at investing in coal mines? 第一个问题请范先生回答一下，第二个问题还是请林先生回答。我们现在已经在建设的项目有三个，一个是在河北的石家庄上安三期工程，这个工程在不久前投产了。第二个是海门，在广东的汕头，海门一期工程，这是两台100万千瓦的机组，这个机组我们估计在2009年可以投产。第三个是山东的日照项目，这是两台68万千瓦的机组，我们预计在今年年底或者明年年初可以投产。公司未来几年的装机，在2008年，我们可能会有240万左右千瓦的这个装机容量投入生产；在09和10年，分别会有540万和1150万千瓦。 Right now, we are building several projects. One is the Shang'an Phase III, which has already been put into operation. The other is the Haimen Phase I, which involves the construction of 2 by 1000MW units, and these units are due for completion in 2009. The third project is Rizhao, where we are building 2 by 680MW units, and these two units are expected to be completed by the end of this year or early next year. The capacity for 2008 is expected to be around 2,400MW, the capacity for 2009 is expected to be 5,400MW, and the capacity for 2010 is around 11,500MW. 公司在未来的发展中，也高度地重视，也加大了在煤炭和港口等上游企业的投入。 The company has intensified its efforts in the investment of coal mine and port facilities. 近期也有规划参与山西省煤炭整合过程中，我们要对煤炭企业进行参股。 The company also has the plan for the near term to get involved in the consolidation of the coal assets in Shanxi province by taking participating stakes in some of the coal enterprises. 好，谢谢。吴建三，你有问题吗？我还想再问一下，因为我们后面09到10年大概有1,700万左右装机投产，那么我们自己建厂的煤源的一个落实情况，现在目前是采取一个什么样的形式？是还是以煤炭企业为主，还是说我们也会参与一部分自己有些自有的一些矿来为这些提供煤炭资源？另外，能不能说一下我们08年上半年的供电煤耗情况？谢谢。 For 2009 and 2010, the company expects to put 17,000 megawatts of capacity into operation, and most of them will be coal-based. How do you think the company will supply coal to these power plants? Will the coal mainly come from the coal mine directly invested by the company or from the coal enterprises where the company takes a minority stake? 好，刘先生来回答一下。我们公司在今后的发展中的项目，大部分都是沿海沿江的项目，所以我们还是一个立足于通过比较有优势的沿海煤炭的运输来解决，包括利用我们集团公司的在内蒙、在东北的一些煤炭企业的产量来进一步提高保障能力。 As most of the company's future projects are located in the coastal region and Yangtze River Basin region, we expect these power plants will continue to rely on Seaborne coal supply for immediate needs. Our parent company, Huaneng Group, will provide support in this regard with their coal resources in Inner Mongolia and Northeast China. 上半年公司的生产的供电煤耗是325克每千瓦时。 For the first six months of this year, coal consumption rate for power supply was 325 grams per kilowatt hour. 吴建三，你还有没有问题？没有了，非常感谢。好，谢谢你。下一个提问是Mitch Investment，刘先生。刘先生你在吗？喂，刘先生？Mitch Investment。Operator？Operator？ Raymond？哎呀。我们这边有刘先生。好，刘安安吗？是的。下一个问题是招商证券的钱成，钱成方的，钱先生你好。你好，能听到吗？听到，你说。管you先生，你们好。我还想问一下，关于燃料成本的问题，就是二季度重点合同煤的成本，还有市场煤的成本各是多少，然后支出各是多少？重点合同支出，然后还有市场煤的支出是多少？这是一个问题。另外再有一个问题，在现在按7月份的燃料成本，单位发电成本，就煤价，然后按照第二次上调上网电价之后的电价，公司在这种情景下面，它每发一度电的净利能有多少呢？是赚钱还是亏钱？谢谢。喂？喂。能听到吗？我听到，管义程。管义程你。喂？你听到吗？刚才钱成的问题。听到了。好。 Actually, two questions. The first question concerns the coal price in the second quarter of this year. Could you provide the key price for key contract coal and spot coal and respective spending on the procurement? The other question is based on the coal price in July and the tariff by now after the second tariff hike, what is the per kilowatt net profit? For company. 这个二季度的煤炭的情况是，重点合同的原煤价是471，市场采购的原煤价是632。 During second quarter, the key contracts price for our raw coal was CNY 471 per ton, while the spot coal purchase price was CNY 632. 在这个购煤量的结构上，重点合同是占47%，市场采购占53%。 Key contracts coal accounted for 47% of the total supply, while the remaining 53% came from spot purchase. 行，谢谢张。还有其他提问吗？还有就是，按煤的支出是多少？一共是多少？合同煤的？对。听见了，要回答。第二季度的合同煤的支出，看你们的支出总量，乘出来。二季度支出2178万吨。第二季度一共支出总量是2178万吨，单价是561元。 The total amount of coal consumed during the second quarter of this year was 21.78 million tons, with an average price of CNY 561. 好，第一个问题没有了。是。第二个问题，8月20号调价以后，我们目前平定的电价水平是千瓦时404块5，那么扣掉如果按7月份的来算，289块钱的单位燃料成本，所以边际贡献还有每千瓦时56块钱。再要跑掉一个固定的成本，这就跟电量有关了，就看电量多大。所以这个盈利的空间几乎也是很小。 After the second tariff hike on August 20, the average tariff of the company's public power plants right now is about CNY 404.5 per megawatt hour, while the fuel cost in July was CNY 289 per megawatt hour. With that, we can arrive at a spot spread of about CNY 66 per megawatt hour. After deducting the fixed cost, which is associated with the generating output, we can see that we are barely break even right now with the tariff hike and the rising cost of coal. OK，Thank you。田先生可以吗？可以。 [Foreign language] The next question comes from Daiwa Securities, Mr. Alan Chen. [Foreign language] 管理层你们好。我有几个问题。第一个也是关于燃料成本的。在首六个月，大概多少是，以百分比来算，多少是合同煤，多少是市场煤？而且到19年、18年，你们预计一整年的合同煤有多少百分比？第二个问题就是关于在你们的报表说到，你们预计今年的利用小时将会下降到大概5500小时，跟你们3月的时候所说的5700多小时下调了一点，可以分享一下你们的看法吗？第三个问题就是关于你们在新加坡那个大士收购的时候产生了一个大概110亿人民币的商誉，那个goodwill。我想看一下，你们看有没有一个风险，就是有减值或者write off的风险。就是这样，谢谢。 I have three questions. The first question concerns the fuel cost. In the first six months of this year, in percentage terms, how much coal comes from key contracts and how much comes from a spot purchase? What is the full year forecast in terms of coal supply from key contracts and spot market purchase? The second question is that in your financial statements, you stated that management expects utilization hours this year to be around 5,500 hours, which were lower than the company's previous statements of around 5,700 hours. Could you share your thoughts with us on this adjustment? The third question is: when the company acquired Huazhu Power early this year, it generated about CNY 11 billion of goodwill, and is there any possibility that there will be some write-off or impairment? 第一个问题请刘卫先生回答一下。第二个问题请铃刚先生回答。第三个请秋芬女士回答。我先回答第一个问题。1到6月份，合同煤占的比例是53.4%，市场煤的采购占的比例是46.6%。我们目前的目标和我们工作的努力的方向是争取年底重点合同煤要达到60%以上。 From January to June, 53.4% of our coal supply came from our key contracts, while the remaining 46.6% of coal supply came from spot markets. The company's target for the full year was 60% of coal supply to be covered by the key contract. 关于利用小时的事，今年由于供需的这个缓解，全国的利用小时比年初预计都有不同程度的下降。 On the question of utilization hours, because of the easing in power demand growth, we are seeing some decline in utilization hours on a nationwide basis. 根据相关部门的统计，年初利用小时全国火电预计在5350小时以上，目前已经调整到5200小时以下。 According to some authorities and institutions, at the beginning of the year, their forecast was that nationwide utilization hours this year would be around 5,300. Right now, they have adjusted that number downward to below 5,200. 尽管华能Power也有所下降，但是它会高于全国的火电利用小时。 In spite of the fact that Huaneng Power will also see some decline in utilization of hours this year, we still expect that the utilization hour of our generators to be higher than the nationwide average. 还有一个提问关于这个商誉，是吗？对。对，新加坡这个111的商誉的情况。对，谢谢。这个商誉从目前来看，没有减值的风险。 For the 11 billion goodwill for the time being, there is no danger of impairment. 陈先生，你有其他的跟进问题吗？还有一个就是想追问一下关于煤价的，可以说明年合同煤，你们有没有看法，那个上浮或者是那个降浮，有没有看法，大概有升多少，或者是降多少？谢谢。 Regarding the price of contract coal next year, what is the management's view as to the pricing trend? Whether the key contract price will rise or fall next year, and by how much? 今年国家发改委6月19日发布过一个公告，7月23日又发布过一个内部的意见。应该从近期看，这些措施在逐步地得到落实。 On June 19, the NDRC issued a public notice announcing several measures to curb coal price increase. On July 23, the NDRC issued an internal memo setting out additional measures to curb coal price increase. 我们认为目前市场上的煤炭价格不会再有太大的涨幅。 We believe there will not be a sharp increase in market coal price. 陈先生可以了吗？可以了，谢谢。好，谢谢你的参与。大家如果还有提问的话，请按1，在电话机上按1。还有，对不起，我还以为这个是最后的疑问。接下来的提问是Soldier的Miss Maureen Yao。喂。 Yao 小姐，你好。听得了吗？听得到，请说。请问一下，刚才提到那个往上游以及那个码头，我没听错的是码头，煤炭跟上游那个发展的话，请问公司长远有没有一个计划，那个自供的比例到哪一年到什么水平，或者是那个总金额有没有一个幅度？还有那个如果是码头的话，麻烦可不可以再解释一下？大家等等啊。其实还有一个最后一个问题就是玉环，我想请问一下玉环上半年的情况是怎么样？玉环的情况。是，利润的情况。 Just now the management mentioned that the company plans to invest in upstream assets, including coal mines and port facilities. What is the company's long-term goal in terms of coal supply from the coal mines owned by itself, both in terms of amount of coal supply to power plants or the amount of billion dollar terms? The other question is could the management talk a little bit about the situation at Yuhuan power plant for the first half of this year? 好，第一个问题还是请刘桂业先生回答，第二个问题请周芬女士回答。关于煤炭的开发，公司也定了一个到2010年前的一个目标，就是要力争煤炭的参股，通过参股，通过一些长期的合同，可控能力能达到每年5,000万吨这么一个目标。 On the question of coal mine investment, the company set the target to reach 50 million tons of controllable coal supply by 2010 through partially owned coal mines and long term contracts. 在码头建设上，公司目前布局了三个点，一个是辽宁的营口港。现在我们已经和营口港合作建设了两座1,000万吨的泊位，主要是将来从东北煤和蒙东煤的下水。 On the issue of port developments, we have identified three locations. One is in Yingkou, in Northeast China. We have set about to jointly build two 10 million ton capacity first, so as to facilitate coal transportation from Northeast China and the east of Inner Mongolia. 第二个是准备在江苏的太仓港搞一个季节性的储存煤的基地，同时做一些煤炭海进江的一些配送工作。第三个泊位是在广东的汕头的海门港，重点主要也是想要通过进口煤炭，大船找小船，对广东福建的煤给一个支撑的作用。 The second location is in Taicang, Jiangsu Province, and we intend to build that into a seasonal logistic center for coal and providing certain logistic services for coal transportation. The third location is in Haimen, Guangdong Province, and we intend to use that location to facilitate imports of coal from abroad. 玉环上半年的累计营业，最近利润197，最后159。 For the first six months of this year, pre-tax profits of Yuhuan Power Plant was CNY 197 million, while after-tax profit was CNY 159 million. Maureen, do you have a question? 对，就是一个跟进的问题，就是5,000万吨的话，应该到2010年代表我们总共用煤的比例是多少呢？还有就是要达到5,000万吨的话，我们投资的金额在刚才我们提到08、09年的基本建设投资是否已经打了进去，如果是的话，要多少呢？ As the company stated that the company intends to reach 50 million ton coal supply by 2010 from its internal sources. How does that compare with total consumption of the company by then? How much investment is needed to achieve this 50 million ton supply? Has this capital expenditure been included in the numbers you provided for the capex spending in 2008 and 2009? 这个我们还是力争能够达到总量的40%以上。具体的资金支出，由于参股的比例和有些项目正在洽谈过程中，所以有些资金可能会略有一些出入。 We expect 40% of our coal supply by 2010 to come from internal sources. As to the exact amount of capital expenditure needed, because we are still in negotiation with several coal companies, we might need to adjust the CapEx numbers accordingly based on our results of the negotiation. Maureen，可以吗？对，就是简单就没有打进去了，是不是？简单说就是还没有算进去。 08、09年。对。这个算了一部分。 Oh，OK。 Part of the CapEx co-production have been included in the CapEx spending numbers for 2008, 2009. 好。 OK, thank you, Maureen。谢谢啊。下一个提问是来自于来自新加坡的APS Alan Tsang。曾先生是吗？曾先生。好的，谢谢管义程。我第一个问题是想问一下利用小时数。因为管义程提到，在08年我们的利用小时数还会高于全国平均水平。我想问一下这个原因是不是因为其他那些小电厂没有拿到煤炭资源，所以他们会关闭，然后我们的利用小时数会高于全国平均水平。然后在明年的话，一方面如果电价调整的话，或者是煤价下调的话，会不会这些小电厂的计息会把我们的利用小时数继续带下来？然后第二个问题就是关于财务状况这方面。因为明年和后年的资本支出还是会蛮大的。然后今年上半年管义程也谈到，其实因为在上半年全国调控货币紧缩的情况下，财务成本有很明显上升。然后我想询问一下，下半年跟明年还有什么方法可以降低财务成本，谢谢。 Two questions. The first question is regarding utilization hours. In 2008, the company expects the utilization of the company's power plant to be higher than the nationwide average. Is it because some smaller power plants cannot buy coal separately under the current situation, therefore, the company is able to generate more electricity compared with these smaller power plants? Next year, if the government raise cap again or coal price come down, then these smaller units will be able to generate more electricity, therefore, take some market share away from the company's power plant, which might result in utilization hours to come down further. The second question is regarding the company's financial expenses. Due to the macro economy control policy seeing an increase in capital expenses. What measures will the management take to keep a tighter control on the capital expenses? 第一个问题，楚明高建来回答一下。第二个问题还是请周总回答一下。好，我来回答第一个问题。我们做出的公司今年的利用小时数要高于全国的平均火电的小时数，是基于以下两个考虑。第一个，就是我们公司的平均的装机的容量，单机的容量是高于全国的。节能优化调度是全国火电发展的一个趋势。大机组能耗低的多发是这个趋势。这是第一个。 The reason for us to say we will have a higher utilization hours compared with the nationwide average is firstly, we have a higher first portion of percentage of large capacity units compared with the nationwide situation. The optimized dispatching scheme is the future trend as we have large numbers of big units. Therefore, we will naturally enjoy a certain advantage when the optimization dispatch scheme is implemented. 第二点是根据公司的装机分布的情况，公司的装机分布在东南沿海一带和京津唐这一带，包括沿江一带，这些地区的发电利用系数高于其他的地区。 Secondly, if you look at our geographic coverage, most of our generating plants are located in Southeast coast and also Jing Jin Tang region, and also the Yangtze River Basin region. These regions have a higher power demand growth. 关于财务状况呢，确实我们今年上半年和去年同期相比，负债率上升了很多。去年年底我们是58%的负债率，今年净资产负债率达到了68.2%。一方面是由于收购大士增加了负债大概6个点。另外也是由于我们规模的扩大，资本支出增加，这也是公司负债率增加了将近5.5个点。所以随着今后09年、10年投资的支出增加，负债率水平还会继续提高。估计到年底的话，我们的净资产负债率可能要到43%、44%这样的水平。但是我们也会努力想办法控制负债的规模。 If you look at our balance sheet, at the end of last year, our debt ratio was 58%, then now reached 58.2%. The acquisition of Huaneng Power results about 6 percentage increase in debt ratio while the capex spending for new projects resulted in about 5.5 percentage increase in the debt ratio. In 2009 and 2010, with increased capital spending, we expect our debt ratio will continue to rise. Actually, by the end of the year, we expect our debt ratio to reach 73% or 74%. 另外，由于去年六次利率的调整，所以跟去年统计相比较，今年上半年由于利率下降导致公司都支出了利息是214。 Because of six rate hikes this year, if we compare the first half this year with the first half last year, we spent CNY 240 million more on our financing expense. 但是由于公司在债务规模扩大的过程当中，采用了一些金融的创新产品，比如说我们发行了110亿的公司债，发行了51亿的短融，所以使得平均的利率比去年这个全年还要降低。去年全年我们平均利率是5.53%，今年是5.4%。那么今后我们还会继续采用一些金融创新产品来降低我们的融资成本。 Because we utilize some innovative financial instruments to raise financing, actually, the average interest rate of debt facilities has decreased from last year's 5.53% to this year's 5.45%. These financial instruments include the issuance of a CNY 10 billion corporate bond and the issuance of CNY 5 billion short-term notes. Going forward, we will continue to utilize the innovative financing instruments available to us to finance our capital expenditure. 好，谢谢。曾先生，可以了吗？还有一些follow-up question。然后那个08、09年我们的资本开支基本上都是新建电厂，还是有收购电厂的一些开支？就是这个。谢谢。 Of the CapEx numbers for 2008, 2009, they mostly include the construction of new projects. They also include some expenditure for the acquisition. 刚才说那个资本支出都是指的这个新建和扩建，不含这个收购。 The CapEx numbers we provided earlier for 2008, 2009 are both for the construction of new projects, including greenfield projects and expansion projects. These numbers do not include acquisition. 有没有收购计划？再就是比较理想的那个资本净负债率是多少？一年。这个是后边说的。净负债率。 Could you talk about the company's acquisition plan going forward? What do you think is your ideal net debt ratio? 这请古先生回答。收购。公司始终还是坚持开发与收购并重的这个方针，并没有放弃这方面的努力。 The company will continue to stick to its strategy that equal emphasis on development and acquisition. We have never given up our efforts with respect to acquisition. 对华能系统内部，我们要创造条件，条件成熟了，我们才会做收购。对于华能系统外部，我们还是要积极地寻找机会去做收购。现在没有可以收购的地方。 For the acquisition target within Huaneng Group, we need to create certain conditions before we can think about acquiring those assets. For the external acquisition opportunities, we need to closely monitor the market and look for such opportunities. Right now, we do not have any specific plans to disclose. 那么对于这个，我们通常而言，对于基础设施行业的资产负债率，一般是不超过70%是比较合理和安全的。那么对于快速发展期的这个发电企业来讲呢，我们觉得75%也是可以接受。那么目前公司因为规模发展比较快，所以很快会到这个水平。我们现在的目标还是努力要控制在70%到75%。 On the issue of debt, on issue of leverage, we think that for a company that engaged in infrastructure development, 70% debt ratio should be regarded as healthy and reasonable. Given that company is still in a high growth phase, we believe a 75% should also be acceptable to us. For the long term, we will make effort to control our debt ratio between 70% and 75%. 曾先生可以了吗？可以。好，曾先生你先问，谢谢。下一个问题是刚才在线的光大保德信基金的侯斌先生，侯先生。好，我是。这位是小姐，对不起啊。各位官员好。我想问一下，我们刚才公布的度电煤耗好像比去年同期高了很多，我想知道原因。第二个问题就是说我们标煤的这个730元是含税的吗？我先问这两个问题。 Two questions regarding fuel cost. It seems that the fuel cost this year has increased quite a lot over that of last year. Could you talk about the reasons? The 730 CNY per ton standard coal price does not include the VAT. 好，第一个问题请我们总工程师邵平先生回答一下。第二个问题的话，请宗辉女士回答。刚才问题问的是供电煤耗，所以刚才刘先生回答的是325克每千瓦时。可能你问的原来去年提的数是发电煤耗，今年上半年是308，比去年同期降低了3.6克。 Yes, the coal consumption rate for power supply during the first six months of this year was 325 gram per kilowatt hour, while the coal consumption rate for power generated was 308 gram per kilowatt hour. Both were lower than that of last year. 11月份的标煤价格是含税的。 The standard coal price for July does not include VAT. 周小姐可以了。您好，是这样子，我看到我们香港那边公布的燃料成本是195.43亿，然后对应的发电量，就是我们算的煤耗和煤价的发电量是对应于914.48亿，是这个数据吗？燃料和煤耗是含税。请你再说一遍好吗？这个question。对，因为现在您这里告诉我了一个煤价是738，含税的，那么发电煤耗我这里有，那么发电量我是914.48亿，那么这样子会根据香港的中报有一个燃料成本是195.43亿。但是两个数据我算出来可能有点差距。这个你是可能算不出来的，因为这里面是含了大士电力的，含了烧油的，含了燃气的。所以成本不一样，简单的算不出来。那我再问最后一个问题，就是说我们之前的合同煤，在今年1月的时候上涨的这个比例是多少？对不起，刚才有噪音，听不清楚。您好，我想知道一下，我们今年1到8月份的合同煤的实际价格比去年签订的这个价格上涨的百分比是多少？ The first question is the discrepancy between the announcement. Our Chief Accountant just explained that the utility fuel cost announcement statement does not include the oil and gas, which is the primary fuel for our 12 power plants. The second question is could you guys give us the increase in contract coal price for the first 8 months of this year compared with the same period last year? 好，董辉先生回答一下。我回答一下你这个问题。重点合同的煤价在二季度以后也陆续出现了一些涨幅，但是由于时间不同，所以以水路和直达的涨得也不一样。涨幅大概在50到200元左右。 During the second quarter, we saw some increase in the price for the key contract coal. The price increase varies between coal delivered to our coastal power plants through waterways and to the inland power plant, which involve train transportation. Overall, the range of increase is between CNY 50-CNY 200 per ton. 周小姐。然后帮在打听电话的人问一下，就是他想知道这个原煤跟标煤的转换比例是1比1.4吗？标煤是7000大卡。对。原煤那就是看你发电量嘛。我们这边大概就是说，我们合同的跟市场的原煤的热值是多少。据我了解情况，好像是存在热值这种下降，可能在4500左右，我不知道我们这边的热值大概在什么样的状况。大卡。 1.4。 1.4 is the full cost number because standard coal refers to coal with a heating value of about 7,000 calories per kilogram while the average heating rate for coal delivered to our power plants is about 5,000 calories per kilogram.