Earnings Call: Q2 2016

Aug 2, 2016

Good afternoon, ladies and gentlemen. On behalf of Huaneng Power International, Inc., I'd like to welcome you all to the conference call regarding the first half year results announcement of 2016. [Foreign language] Now may I introduce the management of the company today. [Foreign language] they are, [Foreign language] The Vice President and Board Secretary of the company, Mr. Du Daming. [Foreign language] 你好，主持人好，大家好。 [Foreign language] The Chief Accountant of the company, Mr. Huang Lixin. [Foreign language] 大家好。 [Foreign language] The general managers for the Department of Budget, Corporate Management, Engineering, Production, Marketing, Fuel, Finance and Capital Market as well as the office for Task Business are also joining us in this meeting. Mr. Du will first review the business performance for the first half year results of 2016, followed by Q&A session. [Foreign language] May we have the honor to invite Mr. Du to review the business performance and Mr. Zhou Biao will conduct the English interpretation. 好，谢谢。女士们、先生们，大家好，欢迎各位参加华能国际中期业绩推介电话会议。 Ladies and Gentlemen, welcome to attend the conference call for the interim results of Huaneng Power International. 昨天公司公布了今年上半年的经营业绩，上半年公司实现合并营业收入529.24亿元人民币，同比下降18.96%。中国准则下，归属本公司股东的净利润62.92亿元人民币，同比下降30.54%，每股盈利为0.41元。国际准则下，归属于本公司股东的净利润61.77亿元人民币，同比下降30.99%，每股盈利为0.41元。公司净利润减少的主要原因是燃煤电厂上网电价下调，公司电量同比下降，以及市场交易电量同比增加。 Yesterday the company released its first half of 2016 result. We have realized consolidated operating revenue of CNY 529.24 billion, decreasing by 18.96% year-on-year. Under the PRC Accounting Standards, net profit attributable to the shareholders of the company was CNY 6.292 billion, decreasing by 30.54% year-on-year. The earnings per share was CNY 0.41. Under the International Financial Reporting Standards, net profit attributable to shareholders of the company was CNY 6.177 billion, decreasing by 30.99% year-on-year, and the earnings per share was CNY 0.41. The profit decrease was mainly due to the on-grid tariff cuts for coal-fired power under the year-on-year decrease of power generation by the company and also the increased supply of unplanned electricity sold in market. 下半年公司将继续注重安全生产，坚持以质量和效益为中心，加快电源结构调整，坚持以增发效益电量为核心，进一步控制燃料成本，努力提升运营效率，积极参与电力体制改革，主动适应市场变化，持续为公司股东创造长期稳定增长的回报。 During the second half of the year, the company will continue to focus on safety production, improve quality and return levels, and accelerate structural adjustment of power supply. The company will also persist in and focus on effective generation power, reducing the cost of fuel and strive to improve its operation efficiency. Proactively participate in the reform of power system and cope with market changes and persistently create a long term, stable and growing return to our shareholders. 下面时间我和我的同事愿意回答各位的提问。谢谢大家。 Well, in the following time, my colleagues and I are going to answer your questions. Thanks. [Foreign language] Thank you, Mr. Du. Here we come to the Q&A section. 感谢领导层，大家好。下面是问答环节，如您需要提问，请在话机上按星键等候，先星号键再数字1。谢谢。第一位提问者是来自瑞士信贷的周天宇，您好，您可以提问。瑞士信贷的周天宇，你好。我有三个问题想请教一下，第一个想问一下，我们上半年的话，直供电的电量的比例和电价的折扣是多少？对于全年的话，我们有没有一个更新的指引？同时可不可以介绍一下，我们有没有算过一季度和二季度分别的我们燃煤机组的平均的上网电价？第二个想问一下，我们对于未来几年的资本开支有没有一个指引？假设我们如果不做任何新电厂投资的话，我们剩余的正常的一些技术改造和运营维护方面的资本开支一年大概需要多少亿？然后最后一个想问一下，上半年有没有哪些电厂是亏损的？区域分布大概在哪里？谢谢。 I am from Credit Suisse. I have three questions. First, could you please provide us the power direct sales amount and its percentage, and also the discount rate for the first half of this year? Also, please provide us your guidance for the whole year. Also, do you have the number for the coal-fired tariff level for your power plant in Q1 and Q2? The second question is about your guideline for the CapEx. If there are no new projects anymore in the future, which CapEx will be for just the renovation and the technical improvements? The third question is, could you please talk about the loss-making power plants in the first half of this year and also the locations of these power plants? 第一个问题关于直供电，还有直供电的数量，还有价格的折扣。这里面我们现在统计整个的总数，我们有一个叫整个的交易电量，交易电量里面包括了直供电量。我想还是这样说可能更好一点，上半年整个交易电量上网电量是270.66亿。那么交易的价格，加成的价格是301.36。如果跟基准的价格是390，这样的折扣接近9分钱。整个交易电量的总量是270.66，这个价格是301.36。那么标准的价格应该是390。刚刚这位先生提的直供电，我们也分类统计了，在交易电里面，其中直供电是有217.55亿。直供电的折扣是大约6分钱。就这个情况。 Well, for the first part, actually, we have new regulations parameters for the transaction scale, which include the power direct sale amount. The total amount for this part for the first half of this year was 27.066 billion kWh, with its average tariff level of CNY 301.36 per MWh. That means a discount of CNY 0.09 comparing to our benchmark tariff. Also, we have the amount for the power direct sale amount, with the power generation for this part was 21.755 billion kWh, with the discount about CNY 0.06 against our benchmark tariff levels. 全年的交易电的预期，目前全年已经签订了656亿的交易电量。 Well, for the guideline for the whole year's transaction power generation, we have signed the contract about 65.6 billion kWh. 好，我来回答一下你的第二个问题。从目前的计划看，我们2017年、2018年的资本性支出分别是244亿和223亿。如果扣除掉基建工程的支出，其他项目的资本性支出分别是69亿元跟51亿元。 In terms of the CapEx questions, actually in the following two years, which is 2017 and 2018, we have a plan for the CapEx totaling CNY 24.4 billion and CNY 22.3 billion. Among these, excluding the infrastructure construction projects and the other expenses, only for the technical improvements and renovation projects, the CapEx for these were CNY 6.9 billion and CNY 5.1 billion respectively. 我来回答后面两个问题。第一个是关于上半年分季度的燃煤机组的电价。上半年总体燃煤机组电价含税的是373.92元/MWh，比去年同期降了13.55%，其中一季度是380.62元/MWh，二季度是366.58元/MWh。 For the tariff for the coal-fired business, for the first half of this year, the average tariff for the coal-fired units was CNY 373.92 per MWh. For the first quarter, this figure was CNY 380.62 per MWh, and CNY 366.58 per MWh for the second quarter. 第二个问题我接，是关于公司亏损电厂的分布。公司目前有84个运营的电厂，其中有13家今年一到六月份是亏损的，主要分布在云南、山西、甘肃所在区的电厂，跟境外的大士公司。 Well, among the total 84 power plants of our company, in the first half of this year, we had 13 power plants making losses, located in Yunnan, Shanxi, Gansu provinces and also one in Singapore. 不好意思，管理层，想追问一个小问题，就是我们一季度的时候说的我们66.8亿的交易电量，比标杆低8.68分，这个指的也是那个交易电量吗？ The following question about the transaction power generation. Actually, for the first quarter, you have mentioned that this part was 6.68 billion kilowatt hours. With the discount of tariff about CNY 0.087. Is this the same indicators or do they have differences? 一季度的，指的是大用户直供电量，就是大用户直供电量。 Well, the first quarter's figure is just for the power direct sales. 谢谢管理层，我们没有其他问题了。感谢您的提问，管理层的耐心解答。大家好，有需要提问，请在话机上按星键等号，先信号键再1。谢谢。下面一位提问者是来自德意志银行的朱欣然。您好，您可以提问了。华能管理层你们好，我这边有两个问题。第一个是关于燃料成本的，想问一下我们上半年单位燃料成本的情况，到现在的话，目前的单位燃料成本的水平。鉴于现在煤价还是在上升的趋势，想问一下这样的话，我们全年煤价的同比下降幅度的指引是什么？这是第一个问题。第二个是关于资本开支这一块，留意到我们上半年整个资本开支大概70个亿，同比下降的幅度挺大的。这样的话想问一下，我们今年全年250亿的资本开支的计划有没有一个调整？另外就是，今年发改委也在有序放开发用电计划的征求意见稿里提到，明年3月15号新增的煤电机组不再参与计划电量了。公司对于这个政策怎么看？我们是不是欢迎这个政策，因为它对我们存量机组的电量是一个保护。然后我们17、18年以后机组的投产计划有没有一个考虑？谢谢。 From Deutsche Bank. I have three questions. First is about the fuel cost. Could you please provide your first half year unit fuel cost and also the most recent trend for this part? We also noticed that the coal price is going up recently. Could you please talk about your whole year guideline for the decreasing magnitude for the cost for this year? The second question is about the CapEx. First half of this year, your actual CapEx is only CNY 7 billion, which decreased a lot comparing to that of last year. As your guideline given earlier that the whole year's CapEx will be CNY 25 billion, this company has a plan to adjust this guideline. The third question is about the NDRC's draft to release the power generation plan since the March of next year. If that was the case, then the companies will have any plan to cooperate this kind of policy? 我说一下上半年单位燃料成本的情况。今年上半年综合单位燃料成本含燃煤的跟燃气的，是146.37元每兆瓦时，比去年同期下降了20.19%。 The unit fuel cost for the first half of this year for us was 146.37 RMB per MWh, decreasing by 20.19% year on year. 从目前的预计来看，因为我们二季度的单位燃料成本基本上是跟去年四季度的基本持平，所以我们预计还是维持年初我们披露的全年单位燃料成本下降10%左右。 As we say, in the second quarter, the unit fuel cost is very similar to that in the fourth quarter of last year. We still maintain our forecast for the whole year's unit fuel cost decreasing by 10%. 好，我回答一下你后两个问题。第一个问题关于资本开支，公司上半年资本开支是支出了73亿元，但是我们对全年的资本支出计划没有做调整。 Well, in terms of the CapEx plan, actually for the first half of this year, the actual CapEx was 7.3 billion RMB. Right now, we have no plan to adjust this guideline for the whole year. 第二个问题，关于计划电量的2017年3月15日的调整的政策，目前公司非常地重视，我们对于已经在建的项目，我们尽量地按照工期，高速度、高质量地低造价地能够争取早日建成投产，赶上政策。对于其他的一些项目，我们会逐一地进行评估，再进行具体安排。 Well, in terms of the NDRC's new policy, of course, the company is paying much more attention to this. For the current projects, we will try our best to commence this kind of units as early as March next year. For the other projects, we will do the separate research and analysis in terms of the progress of these projects. 好，谢谢。感谢您的提问。大家好，有任何提问，请在话机上按星一键等候，先声号键再按一。谢谢。Hello, everyone, if you would like to ask any questions, please press star one on your telephone keypad. Press star followed by one. Thank you。下面一位提问者是来自汇丰银行的黄媛媛。你好，你可以提问了。各位领导你们好，我有两个问题。第一个就是关于利用小时数的。利用小时数全年的指引有变化吗？就是同比的话。然后第二个问题，因为现在我看公司每家各厂下面都还有一些比较小的机组，比如低于300个MW。那对于低于300个MW的机组的话，是不是有把它关闭或者是取代的这样子的一个可能性呢？我还再加一个问题，就是关于零售，就是售电这一块业务的一些进展。好，谢谢。 Well, I'm from HSBC. I have three questions. The first is about the utilization hours. Do you have any plan to adjust your guideline for the utilization hours for the whole year? The second is about your small units. Actually, is it possible that the units with the capacity lower than 300 MW will be shut down in the future? The third question is, could you please provide your progress of your electricity retail business? 好，我来回答。一个是利用小时数的情况，先回答这个问题。利用小时数的情况，在半年报上大家也看到了，上半年我们利用小时数依然是一个下降的态势。上半年同比利用小时数下降了260小时。那么根据上半年的情况，我们就把全年也做了客观的一些预测调整。那么全年我们预计利用小时数3700小时，这样同比要下降197小时。全年的情况下，因为年度计划的是3950小时，这样就又调低了预期的目标利用小时数。 Well, in terms of the utilization hours, as you may say, the first half of this year, our utilization hours decreased by 262 hours compared to last year. Based on this fact, we have made the calculations for the whole year's utilization hours. Currently, according to our calculations, maybe the whole year's utilization hours is possibly to be 3,700 hours, which is lower than the earlier forecast given by us, which was about 3,950 hours. 我继续回答关于这个售电业务开展情况。首先，这个售电按照国家各个地区的政策，要参与地方的售电业务，必须成立售电公司。那么公司整个情况就是说已经成立了五个售电公司，最近陆续所有有业务的地方都要成立能源销售公司、售电公司，都在进行当中。那么从已经参与交易的售电公司，我们现在有一个广东售电公司参与了交易，到目前为止已经获得了交易电量是1.3个亿。 Well, of course, along with the policy given by the government, we are proactively participating in this business area. As requirements, we established some subsidiaries in terms of the retailing business. Actually, currently we have five subsidiaries in terms of the electricity retailing business. Among these, only the Huaneng Guangdong Retail Company subsidiary have participated in the transaction with the total power generation amount about 130,000,000 kWh. 另外，目前公司的机组大部分都是在30万千瓦装机以上，这些机组不在政府要求的关停小机组之列。 In terms of the shutdown plan, actually for our company, most of our units now with the capacity more than 300 MW. For these units, the government has no requirements of shutting down. 谢谢。感谢您提问和领导层的耐心解答。大家好，如您需要提问，请在话机上按星键等候，星号键再按1。If you would like to ask any questions, please press star 1 on your telephone keypad. Press star followed by 1. Thank you。下面一位提问者是来自中信证券研究部的崔林。你好，你可以提问了。好的，谢谢各位管理层。我这边主要有三个方面的问题。第一个方面就是交易电量那一块。刚才我就想问一下，除了这个直供电量之外的交易电量是否指代发电？因为这部分电量我倒推了一下，可能会降了两毛钱左右，幅度会比较大。然后还想问一下，全年这个656里面是有多少直供电的合同？这是第一个问题。然后第二个问题是关于煤价的一个走势预判，因为按照目前煤价线性去推全年的话，可能今年整个煤价跟去年的秦皇岛均价是持平的。而管理层刚才预期全年的燃料成本是下降10%，这是第二个问题。然后第三个就是关于利用小时这一块。刚才管理层讲了，上半年是下降了260，然后预判全年是下降197。这是否意味着全年我们预计下半年整个利用小时是否比去年同比还有一个回升？主要是这三个问题。 I am from CITICS. Actually, I have three questions. First is about the unplanned power generation. Actually, you have mentioned that this part has included the power direct sales. Besides of this, does that include the power generation from the substitution power generation? Because we can make the calculations about the tariff for this part, which has decreased by 0.2 CNY per kWh. Also, could you please provide us your percentage for the power direct sales among the total unplanned power generation? The second question is about the coal price. Actually, we say that maybe the whole year's coal price for this year will be relatively very similar to that in the fourth quarter of last year, but actually the company has maintained the forecast of a 10% decrease over the whole year's coal price decrease. Could you please provide the explanation for that? Third question is about the utilization hours. For the first half of this year, the utilization hours for the company has decreased by 260 hours. But you also mentioned that the second half in whole year's guideline, the utilization hours will be decreasing by 197 hours. Does that mean that the second half, the utilization hours will be recovering in a considerable magnitude? 我先说交易电的主线。我先纠正一下刚刚说的有关全年利用小时数预计的，修正后的预计的小时数是3700小时，这样的同比是下降447小时。刚才说成了197了，是447小时。 First, make corrections about the utilization hours forecast. Actually, we have mentioned that the new guideline for the utilization hours will be 3,700 hours. That means these hours will be decreasing by 447 hours year-on-year. 刚才这个问题关于交易电量分类。交易电量里边，刚刚说大部分是自供电量，还有一部分是替代电量，再有一部分是外送电量。确实是替代电量、外送电量电价是比较低，但这个量相对来说跟自供电量比，这个份额比较低。我手头这里没有分类表。我们是有分类统计的，但是我手头没有。如果需要的话，我们合适的时候再回答你这个问题。就比如说刚刚说的656亿，自供电多少，替代发电多少，外送电多少，到时候再给你个答复。现在手头没有这个数据。 Well, actually among the unplanned power generation, there are three parts, including the power direct sales, which is the largest one, and also the power generation from the substitution and also the cross-region transactions. But the power generation from the cross-regions and also the substitutions is in a very small amount. Maybe currently we don't have the exact numbers, maybe later we give you the percentages for this. 好，我来回答一下这个下半年那个煤价情况。应该说从16年上半年开始，国家有序推进了煤炭行业的去产能工作。煤炭价格应该说自12年以来是连续大幅下滑，今年以来是出现小幅回升。环渤海指数从年初的371上涨到7月初的414。应该是目前全国煤炭现货价格水平已经回落至去年的同期水平。下半年预计国家宏观经济对煤炭的需求不会有明显的提升，影响煤炭需求的主要还是气候因素。而煤价主要取决于供给侧，国家限制产量的力度和执行力，以及煤价上涨后刺激地方中小矿的复产力度。如果这些政策严格实施，中小矿复产的力度不大，下半年的市场的趋向于供需平衡。加上我们长协比例占有50%左右，所以对我们煤炭的上涨有一定的缓冲。所以我们综合分析，16年的煤价同比15年下降的幅度是10%。 In terms of the coal price, actually we can say that the coal price since 2012 has dropped a lot. But we say in this first half of this year, the coal price has rebounded from the original CNY 371 per ton at the earliest of this year, to CNY 414 per ton in July of this year, which was very similar to that in last year. Actually, in the second half of this year, we forecast that the coal price is really up to the government's policy, which is to de-capacity of the coal mines. And also this will be balanced by some maybe incentives of recovery of some small coal mines. So we say that this may be reached to a new balance of the demand and supply. So we expect that the whole year's coal price will be decreasing by 10% year-on-year. 好的，我的问题就这些，谢谢各位管理层。感谢您提问和领导层的解答。大家好，如您需要提问，请在话机上按星号键等候，先星号键再1。谢谢。Hello, everyone, if you would like to ask a question, please press star 1 on your telephone keypad. Press star followed by 1. Thank you. 下面一位提问者是来自Morgan Stanley的张青。你好，你可以提问了。管理层你们好，我有几个小问题想请问一下。第一个我就想问一下管理层能不能给一下利用小时，上半年火电的利用小时和同比的变化，还有火电的燃煤成本的第一季度和第二季度的一个数字。然后另外一个就是，上位投资者也问了，管理层说到有长协，我就想问一下华能签的长协的话，大概煤价是多少？这是两个问题。还有一个我就是想问一下，刚才管理层给的guidance来看的话，全年大用户直供电这个交易电量大概占到2016年可能要占到20%，是比一季度时候的一个guidance的话会更多，所以不知道管理层对这一方面的市场的开放是怎么看的，就是2017年和2018年这样一个大用户直供电的比例会达到一个什么样的比例？还有一个问题就是想请问一下，现在其实电力供给已经供大于求的一个状况，但是公司好像在CapEx这方面，资本支出17、18年也没有明显下降的趋势，所以想请问一下，公司16、17、18一个新增机组，一个投产的计划，谢谢。 I'm from Morgan Stanley. I have actually four questions. First is about the utilization hours and the unit fuel cost. Could you please provide the utilization hours for your thermal power units and also its year-on-year change? And also the unit fuel cost for the thermal power business for the first quarter and the second quarter. The second question is the management has mentioned that the coal contracts in the longer term. Could you please provide us the price of these contracts? Third question is, you have mentioned that the unplanned power generation has accounted about 20% for this year, which is higher than that in the first quarter. So could you please provide us your opinion about the percentage in the following two years? The fourth question is about the power demand. Actually, we can say currently the supply is over the demand in the power industry in China right now. We do not see any declining sign of the CapEx levels. Could you please provide your project's expansion plan in the following three years? 利用小时数。刚才说到利用小时数，整个公司上半年是下降了262小时。如果说火电，包括煤机，下降的趋势是相同的，下降的数值也是比较接近的。其中火电下降是258小时。 In terms of the utilization hours, actually, the average utilization hours decreased by 262 hours. The hours for the thermal units decreased by 258 hours. 煤机，就是燃煤的，下降了277小时。 Also, the hours for the coal-fired units decreased by 277 hours. 利用小时数的情况。刚才说到交易量的比例，因为一季度各个地方的交易都在进行当中，所以看到这个量比较小。到二季度这个量就增加了。后续也是要根据各个地方，特别是各个地方交易机构的成立，成立交易机构以后，它就开展这个电量的交易。总的预期来说，按照电改政策，逐步放开电量计划，交易电量肯定是一个增长的过程，多年增长。 In terms of the unplanned power generation, sure, we can say that the percentage is higher than that in the first quarter. Actually, we say that this part in the first quarter generally is relatively small, because governments have not started these transactions thoroughly. Also, up to the local government policy that in the following years, this part will be open to a relatively higher percentage. So we expect that in the following years, the percentage will be increasing. 我们在交易电，应该是我们公司的决策，目前的情况下还是比较有边际贡献，我们也要积极地争取更多的交易电量，来提高我们的发电市场份额。 For this part, as for the company's policy, actually, if there is the marginal contributions from this kind of unplanned power generation transactions, we will try our best to get the market share to increase our revenues. 说一下今年半年的和分季度的燃煤机组的单吨燃耗成本的情况。今年上半年的燃煤机组的单吨燃耗成本是133.71元/MWh。其中一季度是133.72元/MWh，二季度是133.71元/MWh，这三个数差不多。然后为了便于比较，去年上半年是171.65元/MWh。去年一季度是178.46元/MWh，二季度是164.19元/MWh。 In terms of the unit fuel cost for our coal-fired business. For first half of this year, this figure was 133.71 RMB/MWh, comparing to last year's 171.65. For the first quarter of this year, this figure was 133.72 RMB/MWh, comparing to last year's first quarter, 178.46 RMB/MWh. In the second quarter of this year, it was 133.71 RMB/MWh, comparing to the second quarter of last year, 164.19 RMB/MWh. 未来两年我们公司投产的计划是明年投产398万千瓦，2018年投产200万千瓦。这两年目前计划总的资本支出没有明显下降的主要原因，是我们这几年公司大力发展新能源发电，所以在未来两年新能源装机会有一个明显的增加，所以资本支出不会有一个明显的下降。 Well, in terms of the capacity expansion plan, next year, we're going to add totally 3,980 MW and 2,000 MW for the year of 2018. We can say that the CapEx for these two years does not decrease because of the enhancement of the investment in the renewable sectors. 谢谢管理层。我还有一个小问题，刚才说到签的长协，煤价是怎么定的？谢谢。我来回答一下这个问题。公司2016年和神华、眼光澳洲、山西、陕西、重庆等一些大矿签订了大约是3173万吨的长协合同，上半年兑现了将近一半。长协的定价机制，我们是按照季度定价，月度修订这样的一个调节机制。总体下来，上半年长协的标煤价比市场的标煤价低15块钱左右。 Actually, for the first half of the year, we have signed some contracts with Shenhua and other big coal companies with a total amount 31 million tons, which has settled about half of this. The pricing mechanism is quarterly pricing and monthly adjustments. The price for this part is about 15 RMB per ton lower than the spot market price. 我没有问题了。谢谢管理层。感谢您提问和管理层的耐心解答。大家好，问答环节正在进行中。如您需要提问，请在话机上按星一键等号，先星号键再数字1。谢谢。Hello everyone, if you would like to ask any questions, please press star 1 on your telephone keypad. Press star followed by 1. Thank you. 下面一位提问者是来自中金公司的徐王阳。你好，你可以提问了。喂，管理层你们好，这边是中金的王阳。就有三个小问题想请教一下，一个是关于我们的财务成本，我们上半年的大概的利率是多少？然后想问一下展望的话，因为之前降息，所以大概下半年或未来会不会再有下降的空间？然后第二个是关于刚刚说的那个交易电量，就想问一下，交易电量里面的替代电量部分是不是主要是云南那边的替代，把发电权卖给水电那边的一个发电量，那个大概的一个电价是多少钱？然后第三个是关于煤价，管理层觉得今年全年的煤价比去年平均下降10%，那这个基于的一个前提假设是说下半年的煤价大概要回升多少，或者说是预计下半年煤价是稳在现在的一个情况，那预计明年的煤价如果是在公司管理层这边的一个假设前提下，大概明年会比今年上升多少？这个单位的材料成本。谢谢。 I am from CICC. I have three questions. The first is about the capital cost for the company. Could you please provide your first half the interest cost for the company? Could you please give your outlook for the second half and the following years about this? Second, you have mentioned that your unplanned power generation includes the power generation from the substitution. The substitution means the power generation from the Yunnan power plants, which have sale power generation quota to the local hydropower plants. Could you please provide us this part's tariff? Third question is about the coal price. The management has mentioned that the whole year's guideline for the coal decrease magnitude is still 10% year-on-year decrease. Could you please talk about your assumptions based on this in the second half coal price? According to this kind of assumptions, could you please provide your guideline for the coal price change next year? 说一下这个财务成本，就是今年上半年，我们的综合的资本成本的财务成本、债务成本是4.36%，比去年15年上半年是5.22%，下降了16%。从财务成本近两年的变化情况来看，现在是逐季在往下降，因为去年的多次降息在今年是逐步地显现，因为根据银行的贷款合同的约定，有的是按年调，有的是按季调，再加上我们一些债务置换，逐步地到现在，因此降幅跟去年同比来说比较大。展望全年还有赖于大的货币政策、金融市场的这种松紧的影响，跟我们一个总体可能还有小幅的逐步到位的一个，因此感觉可能会略有下降。 In terms of the financial cost, actually, for the first half of this year, this average cost was 4.36%, comparing to the first half of last year's 5.22%. That means about 16% year-on-year decrease. For this part, we can say that the financial cost situation gradually due to the government interest rates cut and also the company's replacement of our debts. For the future, we say it is really up to the market changes and also the government policy. We think maybe there is some room for very small amount, small percentage decrease for the financial cost. 还是刚才说到替代的分类，我们说代发电、替代转移，还有外送，分类的这个表，这个会后我们提供给证券部，几位刚刚提到的，到时候我们可以给大家一个总数。关于说到是否光是云南替代，不光是云南。云南整个替代量目前到上半年，已经结算的量也比较少，还不到一个亿。云南加起来、滇东加起来也就一个亿吧。就是一个亿，这是要替代的。那么包括替代其他地方，还有一些分类的，这里面因为没有分类表，云南是没有得供，替代也就一个多亿，所以整个分类在表里还是会再给大家提供。 In terms of the substitution amount for the Yunnan. Actually for the first half this part it was 100 million kilowatt hours. The power generation from the substitution is not only for Yunnan. Maybe later we will give the details about the other power plants. 我来回答一下煤价。煤价是这样的，15年我们全年是叫前高后低。今年以来，截止到7月15号，秦皇岛5500已经平仓价达到410到425，比年初应该回升了50元。山西、陕西、内蒙主产区的煤价比年初回升是几十到上百元不等。应该说目前全国煤的价格已回调到去年的同期水平，与06年是大体相当。神华8月份公告的煤价比7月份少了18元。9月份随着需求的减少，上涨应该收窄。四季度迎峰度冬有一定程度的上涨。所以我们综合预测三四季度煤价上涨的幅度就是40到45元之间。这样的话，我们上半年的降幅是22块6，降低的绝对值是99块钱。所以上半年和下半年相加，实际降幅是40块钱到45块钱之间。去年煤价是404。这样的话，我们下降的幅度是10%。 In terms of the coal price, actually we say according to the current market changes and also our major coal suppliers' policy of the pricing that its coal price for the following month will be a little bit higher than the current coal price. So according to our forecast that the second half the coal price will be increasing more than 50 RMB per ton. So combining the first half year coal cost, we see that the whole year our coal price will be decreasing by 40-45 RMB per ton, comparing to last year's coal price of 404 RMB per ton. That is roughly about 10% decrease. 感谢您的耐心解答。请问这位参会者你还有别的问题吗？好，谢谢。对，还有一个追加问题，关于交易电量，我们说已经签了650亿度，这个是截止到7月底或者8月份，那我想问一下下半年会不会还会增加这部分的交易电，这部分的份额。然后大概，或者说我们怎么理解上下半年的比例，就是这种交易电量的签署。 The following question about the unplanned power generation. You have mentioned that the contract has been signed with a total amount about 65 billion kilowatt hours. Is it possible that in the second half you will sign further contracts in this part? 刚才前面说了已经签订了656亿，确实后续应该说肯定还会有交易电量的推出，但这个量会不会这么大，也不好预期。真的说预期没这么大了，因为一般情况下，各个省、各个区域在安排这些交易电量的时候，它有一个前面的通盘的考虑。那么现在剩下的一些没有成立交易中心的，成立交易中心以后，它也要进行一些我们叫首秀，就是交易中心成立了，也要拿一笔进来交易，这种情况下还会继续有所增加。 For the unplanned power generation. For this part, it's really uncertain for the second half of this year. It's really up to maybe the local government, maybe upon its establishment of some transaction institutions. 了解，谢谢管理层，没有问题。感谢您的提问。大家好，如你需要提问，请在话机上按星一键等号，先信号键再一。谢谢。Thank you everyone. If you would like to ask any questions, please press star one on your telephone keypad. Press star followed by one. Thank you. 下面一位提问者是来自国泰君安国际的魏毅超。你好，您可以提问了。你好，管理层，我有一个小问题，想问一下上半年我们燃气电厂的单位燃料成本是多少？然后分一季度跟二季度的话分别是多少？谢谢。 From GTJA, first question is about the unit fuel cost for the gas-fired units. Could you please provide the figure for the first half of this year and also the figure for the first quarter and the second quarter? 上半年燃气电厂的单位燃料成本是374.51元/MWh。其中一季度是358.94元/MWh，二季度是399.73元/MWh。 Well, for the unit fuel cost for the gas-fired units, for the first half of this year it was CNY 374.51 per MWh. For the first quarter, it was CNY 358.14 per MWh. The second quarter it was CNY 399.73 per MWh. 请问这位投资者还有别的问题吗？不好意思，我想知道上半年是374.51元/MWh，这个是不含税，是吧？对。好的，谢谢。 This is the price after tax. 感谢您的提问。大家好，如您需要提问，请在话机上按星键等候，先声号键再一。Thank you everyone, if you would like to ask any questions, please press star one on your telephone keypad. Press star followed by one. 下面一位提问者是来自汇丰银行的黄媛媛。你好，你可以提问了。你好，管理层好，我想再追一个问题，我们电量交易有没有哪一个省还没有参与到这个电量交易或者大用户直购电呢？然后哪一个省占的份额，就是量最多，哪些省比较大？ From HSBC. In terms of the plant power transaction, could you please provide your power plants which do not participate in this transaction? Also, could you please talk about which power plants have the biggest percentage in terms of this transaction? 交易分区域来说，现在什么交易电量都没有的，就是既没有大用户直供，也没有替代，也没有外送的，就是海南省就没有这个交易。海南还有一个贵州，贵州我们有一个风电，但是也没有这些交易。其他的，刚说就或多或少都有了。如果说要说比较大的，甚至我还要戴上眼镜来看一下。我们想象当中大的都是在这个经济比较发达地区，比如说广东地区。甘肃整个是43亿，是吧？甘肃是43亿。山西是现在是20亿。山东42亿。就这些。 Well, for this part, currently we have the power plants in Hainan Province and Guizhou Province that have not participated in this transaction. In terms of the percentage, we say maybe the power plants in Gansu, Shandong, and Shanxi provinces have the biggest percentages. 好，谢谢。谢谢您的提问。大家好，如您需要提问，请在话机上按星键等候，先声号键再一。Thank you everyone. If you would like to ask any questions, please press star one on your telephone keypad. Press star followed by one. 下面一位提问者是来自瑞士信贷的周天宇。你好，你可以提问了。管理层你们好，有几个问题想追问一下。第一个想问一下我们目前的2016、2017、2018年的风电新增装机分别是多少？然后考虑到未来如果我们火电方面的投资有一些改变的话，会不会考虑提高我们风电方面的投资？第二个想问一下，我们对于直供电在2017年和2018年的占比有没有一个大致的预判？第三个想问一下，公司在过去几年一直是维持一个比较稳定的分红比例，考虑到现在火电的市场可能不是特别好，如果在利润有一些影响的情况下，公司会考虑提高一个分红比例呢？还是会降低一下分红比例来保证我们的现金流？谢谢。 I am from Credit Suisse. I have three questions. Firstly, could you please provide us your expansion plan for the wind projects in the following three years? Also, if you decrease or reduce your capacity in the thermal projects, do you have a plan to increase the investment in the wind correspondingly? Second question is about your expectations about the percentage of the unplanned power generation in the following two years. The third question is about your dividend payout policy. We noticed that for the past years, you have maintained a relatively stable payout policy. So in the future, if there is some fluctuations or not so good performance for your company, do you have any plan to adjust this kind of payout policy? 我回答一下这个有关风电的情况，今年的这个公司计划的风电的投产容量是744兆瓦。那么17和18年两年目前的这个计划呢，都是850兆瓦。 In terms of the wind capacity expansion plan for this year, we are going to add totally 744 MW, and also in the following two years, 850 MW respectively. 关于交易电今后这个增长或者这个比例增长的预判，我们现在没有出一个具体数字，但是肯定是一个增长的态势。 In terms of the percentage of this unplanned power generation, actually there is no exact number for this forecast, but definitely this percentage will be increased in the following two years. 公司的分红政策呢，已经写入了章程。那么虽然这个盈利的情况可能会有一些波动，但是我想我们还会坚持这个一贯的、积极平衡稳定的这个派息政策。 Well, in terms of the dividend payout policy, [Foreign language] this has been written into our articles of association. So in the future, if there is some fluctuations in our profits and our operational performance, we still try best to insist our proactively balanced and sustainable dividend payout policy. 想要请问这位分析师还有其他的问题吗？没有了，谢谢。好，感谢你的提问。大家好，如你需要提问，请您在话机上按星号键等候，先星号键再1。Thank you everyone, if you would like to ask any questions, please press star 1 on your telephone keypad, press star followed by 1。下面一位提问者是来自Morgan Stanley的张青。您好，您可以提问了。管理层，我只是追问一下，关于股利支付率的话，因为公司一直保持是50%，那现在因为利润可能下降，所以公司会不会去增加这个股利支付率，比如从50%增加到60%？谢谢。 Actually, from Morgan Stanley. For the dividend payout policy, because the past few years you have maintained the payout ratio about 50%, but if in the future your profit decreased, do you have any plan to increase this ratio to, for example, 60% to maintain the exact number of the dividend? 我们主要还是会维持一个比较稳定的派息率，比方说50%的派息率，我们会维持。至于是不是要保证一个高的绝对的派息的水平，这个我们政策里头还是有一个平衡的问题。所以我想大家可以期待，这个派息率的比例应该是会在50%以上。 In terms of the payout ratio, actually we want to maintain this payout ratio no less than 50%. Also in our dividend payout policy, we have the policy on the balanced payout ratio. So in the future, we say maybe it's not focusing on the exact numbers of the dividends, but the ratio that we're focusing on. 谢谢管理层，没有问题了。非常感谢大家的积极提问。大家好，问答环节正在进行中，有您需要提问，请您在话机上按星号键等候，先星号键再数字1。谢谢。Thank you everyone, if you would like to ask any questions, please press star 1 on your telephone keypad. Press star followed by 1. Thank you. 大家好，下面一位提问者是来自创阳投资的金溪。你好，你可以提问了。创阳投资的金溪。我想问一下，刚才你提到装机的计划，说17年是大概在400万千瓦，然后18年是200万千瓦。然后风电的话，17和18年都是85万千瓦，这样是不是相当于这两年我们火电的装机增长还有400多万千瓦左右？ From Chuangyang Investment. Actually, you have mentioned that your capacity plan for the following two years. So does it mean that in the following years you have about 4,000 new capacity will be added? 明年和后年，虽然说我们风电的装机都是一样的，但是火电还是有一定的变化。那么其中17年我们计划投产的煤电是147万，还有燃机有150万。18年这个火电我们目前的计划投的是10万，燃机还有90万。 Specifically for the capacity plan for next year, there will be 1,470 MW for the coal projects and 1,500 MW for the gas. For the year of 2018, we have 100 MW for the coal and then 900 MW for the gas. 大家好，最后一位提问者是来自UBS的岳奇瑶。你好，你可以提问了。下午好，管理层。谢谢你们的电话会议。我想搞清楚一个事情，就是您说总共有三种这种不是计划的电量，一个是售电，应该是卖给大用户，第二个是外送，第三个是代替。那么是不是还有一种，在广州电力交易中心，是一种每个月度的，可以在那边做电力交易，华能有没有参加这种交易呢？谢谢。 From UBS. Actually, I want to clarify that the unplanned power generation modes, actually, you have mentioned that there are three types among these, including the power direct sales, which sell the electricity to the customers directly, and also the other two types are the cross-region transactions of power and also the power generation for the substitutions. I want to confirm that except of these three types, there is also the power monthly bidding in the Guangzhou Transaction Center. Could you please talk about whether the company has participated in this transaction? 因为前面说了，除了三种，一个是直供电，进来发电，还有外送电，这个等于说我们从对上来说，相当于一对一，有买的，有卖的。那么我们现在广州这个交易中心的交易电，我们广东能源销售公司进场交易的，就相当于一个电力的中间商了，它这个对象是不确定的。所以这样的电量，到上半年已经获得了1.3亿的交易电量，作为电力的中间商，它没有对应跟哪一家的，它相当于一个中间商，所以有区别于我刚才所说的三类交易电量。 Sure. Specifically, there is one type in the Guangzhou Transaction Center. For our company, the Huaneng Guangdong Retail Company has participated in this transaction bidding center. That is with the total power generation of about 130 million kWh. 谢谢。 [Foreign language] Thank you so much for all the questions and participation today. [Foreign language] Finally, Mr. Du would like to give us a summary. 感谢各位参加华能的推介会，感谢各位一直以来给予华能公司的大力支持和持续的关注。今天的电话会到此结束，如果有进一步的问题，欢迎大家会后与公司的投资者关系处联系。谢谢大家。 Thanks for attending Huaneng's conference call today. Thanks for your long-term support and lasting attachment to the company. Please contact our IR department after the conference if you have any further questions. Thank you. [Foreign language] Thanks again for your attendance of the conference call regarding the first half year results announcement of 2016. We are looking forward to meeting with all of you in our next results announcement. Thank you.