Earnings Call: Q1 2017

May 3, 2017

Earnings release

Ladies and gentlemen, on behalf of Huaneng Power International, I'd like to welcome you all to the conference call regarding the first quarterly result announcement of 2017. [Foreign language] Now may I introduce the management of the company today. [Foreign language] the Vice President of the company, Mr. Liu Ranxing. [Foreign language] 主持人好，大家好。 [Foreign language] The general managers for the departments of budget, corporate management, engineering, production, marketing, fuel, finance and capital markets, as well as the office for board business are also joining us in this meeting. [Foreign language] First of all, Mr. Liu will review the business performance for the first quarterly results of 2017, followed by Q&A session. [Foreign language] May we have the honor to invite Mr. Liu to review the business performance, and Mr. Zhou Biao will conduct the English interpretation. [Foreign language] 女士们、先生们，大家下午好，欢迎各位参加华能国际一季度业绩推介简报记者会议。 Ladies and gentlemen, good afternoon. Welcome to attend Huaneng Power conference call for the first quarter result. 昨天公司刚刚公布了今年第一季度的经营业绩。按照中国会计准则计算，2017年第一季度公司实现合并营业收入375.77亿元人民币，同比上升了7.54%；归属于本公司股东的净利润6.52亿元人民币，同比下降了86.97%。公司净利润下降的主要原因是燃料价格上涨。 Yesterday, the company released its first quarter results for this year. Under PRC accounting standards for the first quarter of this year, the company realized consolidated operating revenue of CNY 37.577 billion, increasing by 7.54% year-on-year. The net profit attributable to the shareholders of the company was CNY 652 million, decreasing by 86.97% year-on-year, and the profit decrease was mainly due to the increase of fuel price. 展望全年，公司将继续坚持以提高发展质量、效率为中心，主动参与市场竞争，努力实现区域利用小时领先，继续优化燃料采购策略，严格控制燃料成本，积极拓展融资渠道，提高资金使用效率，不断提升公司核心竞争力和盈利能力，为股东创造长期稳定增长的回报。 In respect of the whole year outlook, the company will focus on improving growth quality and efficiency, actively participate in the market competition, trying to realize our utilization hours are leading in regional level, continuously optimize fuel purchasing strategy that has controlled the fuel cost, exploring the financing channels to improve our capital using efficiency. Through these measures, we hope we could continuously improve our core competitiveness and profitability to create long term stable and increasing returns to our shareholders. 下面的时间，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 glad to answer your questions. Thanks. [Foreign language] Thank you, Mr. Liu. Here we come to the Q&A session. Operator. 感谢主持人和管理层，大家好，下面是问答环节，如需提问，请在话机上按星键后，先星号键，再数字键1。Thank you everyone, we are now going to the Q&A section. If you would like to ask any questions, please press star 1 on your telephone keypad. Thank you. 第一位提问者是来自花旗银行的刘显达，您好，有请。管理层你们好，我是刘显达，花旗银行的。我有三个问题，第一个问题是：我们看归属于上市公司股东净资产今年一季度比去年下降了16%，那我想知道是什么原因？第二个问题是，华能公司一季度电厂的利用小时是多少？跟去年同比的情况怎么样？对今年整年的经营怎么样？第三个问题是，公司一季度管理费用是有所下降的，我想知道原因。谢谢。 I'm from Citi. Three questions. First is we noticed that your net assets attributable to shareholders decreased by 16% year-on-year. Could you please talk about the reason for this decrease? The second question is about the utilization hours. Could you please provide us your utilization hours for the first quarter and also the whole year's pipeline? The third question is, we noticed that your management fee increased. Could you please provide the reason for that? 这个我来回答一下这个头一个问题。从这个季度来看，合并的资产，今年17年的3月31日是930亿，去年就是重述之后，到2016年12月31日的这些资产是1,073亿，就是减少了140亿，就相当于你刚才说的那个下降了16%。这个主要原因是收购这个飞扬项目的投资，我们当时公告的是花了152亿，然后按照中国会计准则规定，是跟这个资本公积进行一个抵消。抵消完了之后，又加上一些经营的盈利，因此今年这个资产比去年相当于是减少了142亿，相当于其中有152亿是一种会计处理，然后正常经营的又增加了10亿左右。 For the first quarter of this year, our net assets attributable to shareholders was RMB 93 billion comparing to the restated net assets, which was RMB 107.3 billion. That means that the net assets figures decreasing by 16% year-on-year. This decrease mainly due to the acquisition of the power assets from Huaneng Power with the consideration totally RMB 15.2 billion. That has offset effects referring to the surplus and also the operation of the income for this acquisition. 第二个问题，利用小时数的事。这个一季度的利用小时数，公司整个情况是跟去年同比是增加了10个小时，也就是利用小时数978小时，同比增加10个小时。特别可惜的是，煤机，就是燃煤的利用小时数增加了17个小时，达到了1,023小时。 For the utilization hours, for the first quarter, the average hours was 938 hours, increasing by 10 hours year-on-year. Among this, we have the coal hours, which is 1,023 hours, increasing by 17 hours year-on-year. 所以根据这个利用小时的变化，我们就判断，就是我们年初制定的这个发电量3,920小时，整个增长也就是说，按照目前的增长来说，也是能够完成的。 Based on the current growth rates and the actual situation, we say that the whole year's guideline for the utilization hours, which will be 3,920 hours, will not be changed. 这个我来回答一下这第三个问题。注意到我们今年这个公告的这个利润表，就是这个管理费用，今年一季度是8.8亿，然后去年同期的16年一季度是11.5亿。从这个数据来看的是减少2.7亿，其中大部分的2亿左右的这个减少，主要是我们是去年进行了一个电厂统一的这个人工成本的薪酬的一个分摊，就是把这些所有的电厂，所有的部门，跟生产有关的这个部门的这个费用，这种统一的结果是由这个管理费用到了生产成本，这是一个会计标准化的一个明细的这个结果的影响。 For the first quarter, our management fees was 880 million RMB comparing to 1.15 billion RMB of last year, first quarter. The decreasing reason for this is because we have transferred the management fees to the costs, which have totally about 200 million RMB. 那就是那个管理费用，每一个季度就是减少两个亿。那我们接下来一年都会有这样的情况吗？但是就这样，它这个全年来看，我们去年特案统一对16年的影响大概是这个6个亿左右。但是就是说，因为它是一个成本费用和成本之间的一个转移，因此整体来看是没有什么影响。这就是这个。还有一个影响的是根据这个会计准则要求，这个在管理费用列支的房产税、土地使用税、印花税、车船使用税等一些税类的科目，管理费用调整到税金及附加的科目。 Because of this, which has 600 million impact for the whole year of 2016. It is coming from the adjustment according to the financial accounting standards for some effects. 好，谢谢。感谢您的提问，也感谢王立成的解答。大家好，如您需要提问，请在话机上按星号键，然后先听号键，再输入键1。谢谢。As a reminder, if you would like to ask any questions, please press star 1 on your telephone keypad. Thank you。下面一位提问者是来自摩根大通的简正华。你好，请提。摩根大通证券的简正华。我有三个问题，第一个问题想请教一下，在第一季度的时候的平均电价是多少？然后交易电、市场电的那个部分占多少，平均的价差是多少？这个是第一条问题。第二条问题，也想请教，可不可以帮我们证一下，在1月、2月、3月分别的单位的燃料成本。最后一条问题，我们也留意到媒体报道说总体上火电的近期情况比较困难，有一个亏损状况。那不知道有没有听说或者有可能那个煤电联动价电价的那个步伐可能会加快的，谢谢。 I am from JP Morgan, I have three questions. First is about the tariffs. Could you please provide us the average tariff the first quarter and also the percentage for the long-term power generation and also the discount for this part? The second question is about the fuel cost. Could you please provide us the separate month for first quarter fuel cost? Third question is about the loss-making power plants. We heard that there are lots of power plants making loss in the first quarter. Do you think that the government will push forward to implement the potential mechanism? 关于平均电价以及交易电情况。这个季度的平均电价是405.97，也就是4毛06，是405.97平均电价。 For the average price for the first quarter, it was 405.97 RMB per megawatt hour. 就是大家关注的交易电量情况。这个交易电整个一季度的交易的量是139亿，同比增加了61亿。 For the long-term power generation for the first quarter, it was 13.9 billion kilowatt hours, increasing by 6.1 billion kilowatt hours. 交易电的比例是15.49%，同比增加了4.7个百分点。 The percentage for the long-term power generation was 15.49%, increasing by 4.7 percentage points. 大家关心的这个结算的价格，结算的价格是3360.14，比标杆价低38.59。 The average settled price tariff for this part was CNY 336.14 per megawatt hour. The discount rate for this part was CNY 0.038. 这个降幅跟去年同比，降价的幅度减少了40.31。 We can say that the discount level is reducing about CNY 0.0403. 这个降幅的减少也说明这个市场竞争逐步地趋于一种理性。 Well, the reducing of the discount means that the market players are more reasonable to compete in this market. 我来说一下这个第二个问题，就单位成本的情况。单位成本，从我们感觉来看，因为月度的尤其有季节的影响，我们一般的月度变数更大，一般反映单位趋势，我们是用季度环比这个指标可能更能反映这个情况。从这个数字来看，今年一季度的单位成本是222.08元每千瓦时，这个是含燃机跟煤机的综合单位成本，比去年四季度的215.69元每千瓦时有小幅上升，季度环比增加了2.96%。 In terms of the unit fuel cost, actually we say the quarterly basis change may reflect more similarly the operation situation. For the first quarter of this year, our unit fuel cost was RMB 223.08 per megawatt hour, increasing by 2.96% compared to the fourth quarter of last year. 第三个关于煤电联动。因为煤价波动的周期和速度的变化，现在比较快。所以煤电的联动机制相对是滞后的，也就是说煤价下跌的时候，电价也不一定马上降下来；煤价上涨的时候，电价也不一定马上调上来。根据这个特点，我们作为发电企业，也在积极建议电价政府主管部门优化联动机制，通过缩短联动的周期，平滑煤价对电价的影响。但是到目前为止，还没有新的联动的办法出台，也没有调价的讯息。 In terms of the pass-through policy, we say just because of the very huge fluctuations of the coal price, and also a little bit longer risk cycling for the pass-through policy, the tariffs cannot reflect the cost change in time. The power producers suggested and called for the government to maybe optimize their pass-through policy to shorten the implementation cycle. But currently, we have not received any notifications from the government. 好，第一个问题，就是说全年的单位燃料成本的指引还是维持在15%的增长吧？对。我们其他问题，谢谢。综合单位的成本比去年是增长15%。 We do not change the guidelines for the unit fuel cost, which will still be 15% yearly increase. 感谢您的提问。大家好，有需提问，请在话机上按星号键，再按一次键1。As a reminder, if you would like to ask any questions, please press star 1 on your telephone keypad. Thank you. 下面一位提问者是来自中信证券的崔林。你好，有请。各位管理层下午好，我是中信证券的崔林。我这边有两个小问题。第一个是关于燃料成本的，我想知道一下长协煤和市场煤的一个比例，以及各自的一个价格，就是一季度。还有一个就是关于燃料的第一个小问题。第二个小问题是关于进口煤那一块的比例，以及全年的比例的一个指引。这是关于燃料的这两个问题。第二个问题是关于整个市场竞争这一块，目前的话，因为煤价的上升，我们认为我们整个价格的降幅是有所收窄。那从全年来看的话，目前看一季度的市场化交易比例还比较低，那我们认为全年的市场化交易比例怎么样？然后后面的一个降价趋势，可能还想请教一下管理层，我们对于未来，比如说煤价跌了，或者煤价涨了，未来市场化交易部分的价格传导的能力，也是一个定性的描述。好，谢谢。 From CITIC Securities. Actually, I have three questions. First is, could you please talk about the percentage for the long-term agreements and the spot market purchase respectively, and also its price for the first quarter of this year? The second question is about the import. Could you please talk about the percentage for the import and also the pipeline for the whole year? The third question is about the competition. We noticed that along with the coal price increase, the discount for the non-plan power generation tariff is smaller compared to the previous years. Could you please talk about the guideline for the whole year in terms of the percentage for this non-plan power generation? Also, based on the coal price change, could you please talk about whether there is or there will be some tariff adjustment mechanism for this part? 好，我回答一下第一个问题。今年一季度，我们总共采购煤量是3,980万吨。其中里面长协的量是1,905万吨，占比是47.9%。那么市场的煤量是2,074万吨，这是一个量的情况。那么价格呢，长协煤的价格，一季度是547.37元/吨。市场的煤价是574.19元/吨。这是长协和市场煤的情况。那么进口煤呢，我们一季度的进口煤量总共是950万吨，总体我们减少了28万吨。那么我们全年的进口的安排是全年安排3,300万吨的进口煤，同比大约是减少了1,000万吨。 In terms of the fuel cost. For the first quarter, we have 47.90% of coal purchase from the long-term agreement and the remaining part is the spot market purchase. For the price, the coal price for the long-term agreement was CNY 547.37 per ton and the spot market purchase price was CNY 574.16 per ton. In terms of the import coal, for the first quarter, we purchased 9.5 million tons from the overseas markets, decreasing by 380,000 tons compared to that of last year. For the whole year, we have a guideline of 33 million tons for the imported coal purchase, decreasing by 10 million tons compared to the last year. 关于市场竞争交易电量、电价交易价格走势，以及价格传导的能力情况。交易电量，我们预计公司所在地区的交易电量会占到整个电量的20%到25%左右。那么公司年度的交易电量也是在这个范围，25%左右，年度的交易电量。同样的，我们在这个价格，按照一季度情况，包括整个刚说市场的参与主体，目前竞争这种策略，那么这个交易电的价格总体是会上升的。第二个。第三个关于这个，在煤价影响传导。应该说公司在这个目前交易地区，我们占有发电成本相对比较低，基数能耗指标比较好。这个优势吧，所以应该说市场的燃料价格的上涨也会带动整个发电电价上涨的预期，应该说我们更有承受煤价变化这个传导能力吧。这个能力更强。 In terms of the non-planned power generation part, actually for the whole year, we expect that this part will be around 25% for the non-planned power generation. The price, we say based on the first quarter situation and also the optimization of the strategy, we say the average tariff for this part will be increasing. For the adjusting mechanism, we say currently there is no fixed mechanism, but we say if the coal price increase and the tariff has reason to increase accordingly, of course, we believe we have the advantage to maybe control the cost of change for this part. 好，谢谢各位。我没有问题了。感谢您的提问。大家好，有提问请在话机上按星号键打好，星号键再次击一。As a reminder, if you want to ask any questions, please press star one on your telephone keypad. Thank you. 下面一位提问者是来自贝莱德的黄佳瑶。你好，有请。喂，管理层下午好。喂，你好，请问听得见吗？你好，请讲。你好，我有两个问题。第一个问题是关于交易电量，你刚才也提过这个事情。所以想管理层再讲一下，如果煤价真的往下降的话，大家对于煤价有一个预期，煤价应该往下降，你觉得煤价如果真的往下降的话，这个交易电的那个折让会不会也继续扩大呢？现在我们估计，这个交易电的折让会比往年收窄。这个是基于煤价其实在这个高位继续维持。如果煤价真的往下降，你觉得这个折让会变成怎么样呢？因为在这个产能也是比较过剩的情况下，好像大家对于竞争还是比较积极的。这个是第一个问题。第二个问题是关于这个产能，你觉得国家现在今年对于火电有没有可能有一些比较明显的去产能这个工作呢？我们之前听过有一些缓建停建等等，但是对于一些比较老的旧的火电厂，你觉得有没有一些比较大的动作呢？谢谢。 From BlackRock. I have two questions. First is, for the non-plan power generation, because for the first quarter, we noticed that the discount rate for the tariff has been squeezed because of the higher coal cost. So if in the future the coal price decrease, does that mean that it is possible for the discount to get bigger and bigger? The second question is about the capacity cutting by the government. Because the government has released a series of policy to reshape and to cancel some thermal power projects. Is there any possibility for the government to raise new policy to shut down or to maybe cancel the old and maybe the smaller power generation units? 我就回答第一个问题，因为假设煤价下降，那么如果煤价下降，肯定对我们发电企业首先是一件大好事。因为煤价下降以后，交易电的价格也并不是会同比例地降低，还没有这个比例。这是一个心理上的影响因素，更多的是取决于我们这个交易的策略，是吧？特别是我们发电企业参与交易的策略如何更重要。也就是说，你走什么样的合作的价格，再去参与这个交易。再一个，也取决于用电的用户对这个价格的接受程度。这里面也没法一下子说煤价下降了，交易电价也必须下降，没有这个必然的规律。Well, for this first, it's good to say that the coal price will decrease. Actually for the tariff discount for this part, it's really up to our strategy and the competition in this market, and also the capacity for the end users, whether they can accept the price change for this part. So there is no fixed or no regulation for the adjustment for the tariff for this part. 我回答一下这位先生提的第二个问题。这位先生可能已经注意到了，在今年的两会上，总理的报告中是明确提出来了电力去产能的一个目标，就是三个一批，就是停建一批、缓建一批，还有淘汰一批。大家可能现在已经注意到了，那么我们国家现在电力发展的速度正在逐渐地向着比较有节奏的方向发展。这是一个。再一个就是关于淘汰一批，那么主要重点是淘汰一些纯凝小机组。那实际上我们华能这些年来一直在做一些更新改造工作，把我们的这些纯凝机组基本上都改造成了热电联产的机组。这样的话，在这次去产能过程中，应该说我们还站在一个比较好的、优势的地位。但是具体的这个产能，就是说小机组能不能关停，去产能能不能去，还要等待国家发改委进一步的文件的出台。Sure, you have noticed that Premier Li has stated that there will be some projects will be delayed or cancelled in the following period. So we do believe that this will be the general trend for the future for the thermal power generation. For our company, actually we have made the renovations on the traditional small units to convert these units to the co-generation units. So in this respective, we have the advantage in the market competition. But for the further government policy, it's really up to the NDRC's notifications. Currently we don't have this side. 请问这位分析师还有其他的问题吗？没有了。谢谢。好，非常感谢您的提问。大家好，有提问请大家继续按下星号键等候，先星号键再1. As a reminder, if you would like to ask any questions, please press star one on your telephone keypad. Next question is from the PRD. Please go ahead. Yeah, hi. I just wanted to ask about the CapEx plan to the company. It seems like every year you keep acquiring some assets from the parent company, and it's almost quite a large CapEx, CNY 10 billion-CNY 15 billion every year. Given that the coal power plants are not making good profits, what is the rationale behind such acquisition? Is it likely to continue in future? Thanks. 那么关于公司的资本支出方面的一个计划，实际上就是去年我们收购母公司这个资产，其实金额也比较大，花了150亿。从公司角度来讲的话，目前在这种情况下，收这些火电资产背后的逻辑是什么？未来对于资本支出方面的规划是什么样的？我来回答这个问题。公司未来几年的资本支出基本上相当于往新能源方面来倾斜，风电光伏方面来倾斜。但是由于煤电，现在不是都缓建了，刚才我们刘总也说了，煤电缓建，它现在资本支出目前是这样一个规律，就是在投产年支出20%，投产前两年基本上分别支出40%。所以我们就是按这样一个资本支出的原则，整个来测算。 First about our CapEx, we should note that for our growth plans, the CapEx has in general transferred to the renewable projects in the future. For the coal-fired projects, actually in terms of the specific allocations of the CapEx plan, there are 3 years allocations as the 40% for the first 2 years and 20% for the year of the commencing operations. 因为在国家的十三五产业规划。对，在国家的十三五产业规划发布之后，我们公司在十三五期间，也就是着力推进低碳清洁能源的充分利用，大力发展风电，加速发展太阳能发电，择优发展天然气发电，酌情布局抽水蓄能电站，努力参与核电投资，密切关注其他的新能源应用，有序发展清洁煤电，坚持构建并重、合资合作的方针，积极寻求项目开发合作，重组并购新能源发电资产的投资机会，不断提高低碳清洁能源装机比重。 After the release of the national 13th Five-Year Plan, we have our own goals for the future development. That is to enhance our development in the low carbon emission clean energy projects, especially for the renewable sectors. For example, the wind projects, the solar projects, and also the relatively cleaner projects for the gas-fired power generation. We may are looking for some opportunities in the other clean energy projects, including for example, the pumping energy and also the nuclear energy sectors. So in general, we have the very clear goal to transfer us to increase our percentage of the clean energy sector. Sorry, my question was regarding this recent asset acquisition that you did, the 16 billion renminbi. What are those assets? Are they mainly coal and gas-fired assets? Why are you doing these kinds of large acquisitions every year of coal-fired assets? 还是刚才那个问题，就是说为什么去年我们花那么大一笔钱去买这个资产？我回答一下这位女士的问题。就说华能去年收购这个项目，主要是我们一个是市场问题，一个是结构调整问题。大家可以看到了，山东这个电力市场发展的还是比较稳步的，它的增长还是比较有力，增长比较好。再一个就是说，我们提的黑龙江随着国家振兴东北老工业基地这个政策的不断推进，那么他们的电量的增长也将有一个好的前提，这是一点。再一个就是大家可能已经注意到了，这次我们收购的项目里头，他们热电联产的基础占的比例就很大。这样的话，对于我们今后占领电力市场，占领热力市场，增加新的利润增长点都是非常有益的。 Well, in terms of the acquisition last year, we can say from the market reason and also the reason for the adjustment of our structure. Specifically, actually there are three provinces we have entered into in Shandong, Jilin, and Heilongjiang provinces. For the Shandong province, actually its power market has a relatively higher growth rate for the past years. In the future, we believe the growth rate will be better than other regions. For the northeast regions, including the Jilin and Heilongjiang provinces, the government has the policy to encourage an investment in these regions. So we believe there will be a better perspective in the future for these two provinces. For the projects under this acquisition, there are a relatively higher percentage of cogeneration projects, which will be very good for us to compete in the futures market. Okay, thank you. You will continue to look for such opportunities in future, these sort of large asset acquisitions. 那么未来公司还会有这种大型的资产收购吗？这个要根据我们电力市场的发展以及公司产业结构的调整而进行做出决策。 We'll make the study based on the market situation and also the demands for our energy structure adjustment. Thank you. 感谢这位参会者的提问。下面一位提问者是来自法国巴黎银行的张静。你好，请。管理层你好，我想问一下，一个是单位燃料成本，煤机的能不能给我们一个一季度和四季度的数字，然后还有标煤也是，一季度和去年四季度。另外我想问一下，新加坡的大士能源管理层能不能给我们一个收入和净利润对公司一季度的影响贡献，谢谢。 From BNP Paribas, two questions. First is, could you please provide us your coal-fired unit fuel cost for the first quarter and the fourth quarter of last year, and also the standard coal price for the first quarter and the fourth quarter of last year? The second question is, could you please provide us the revenue and the net profit contribution to Tuas for the first quarter? 我来回答这个，我再补充说一下单位燃料成本。刚才说的那个综合的单位燃料成本是222.08元每千瓦时，这是依据的一季度的数字。其中煤机的是213.96元每千瓦时，燃机的是354.49元每千瓦时。这是今年一季度的。四季度我刚才说过了，综合的是215.69，其中煤机的是208.18，燃机的是337.85。因此从这几个数据来看，无论综合的，还是煤机的，还是燃机的，季度管理来看，都有小幅上升。 In terms of the unit fuel cost, I did the first quarter of this year for our company. The average cost for us was CNY 222.08 per megawatt hour. Among these, it was CNY 213.96 per megawatt hour for the coal, and CNY 354.49 per megawatt hour for gas. For the fourth quarter of last year, the average cost for us was CNY 215.69 per megawatt hour. Among these, it was CNY 208.18 per megawatt hour for the coal, CNY 337.85 per megawatt hour for the gas. We can see that the unit fuel cost for the first quarter increased a little bit quarter-on-quarter. 一季度的标煤单价是812.89元每吨。那么今年四季度是784.19元每吨。 For the standard coal price, for the first quarter of this year, it was CNY 812.89 per ton, and the fourth quarter of last year it was CNY 786.99 per ton. 我来说一下大士。大士这一季度收入是23.21亿。税前利润是负的1.39亿，权益利润是负的1.16亿。 The operational towards power for the first quarter of this year, we realized total operating revenue of RMB 2.321 billion. The loss before tax was RMB 139 million. The net loss was RMB 116 million. 不好意思，我刚才标煤价格可能说错了，一季度的标煤价是805.85元每吨，这是一季度。去年四季度是805.88元每吨，基本上持平。 Let's make some corrections on the standard coal price. For the first quarter of this year, it was RMB 805.85 per ton, and for the fourth quarter of last year, it was RMB 805.88 per ton. 好的，谢谢。感谢您的提问。大家好，有提问请在话机上按星号键等候，星号键按数字键1。As a reminder, if you would like to ask any questions, please press star 1 on your telephone keypad. Thank you。下面一位提问的是来自摩根士丹利的张静。你好，张静。管理层你们好，我就有几个小问题想请问一下。第一个，我就想请问一下，刚才关于单位煤价的话，其实就是说四季度就是持平了，为什么我们反映到单位燃料成本上面反而会有点增加？是因为效率方面有点差异吗？这是第一个问题。第二个问题，我就是想请问一下，从今年初到现在为止，关于市场化电量新的合同总共签了多少？刚才管理层也提供了一季度的量，但是我就想请教一下总共签了多少量，以及签的这些量里面的交易价格和普通上网电价的差异。然后还有个问题，我就是想请问一下，今年一季度其实我们的财务成本相比去年也是增长了一点，所以我就想请问一下，这个主要是债务的增加，还是平均财务成本的增加？然后并且想请管理层预测一下今年全年的一个平均财务成本。然后还有一个问题就是关于亏损电厂和占比，就是因为四季度的时候，好像说我们是有15个电厂是亏损，所以想请问一下一季度这个亏损有没有好转还是变差，谢谢。 From Morgan Stanley, I have four questions. First is, we notice that you have a relatively flat standard coal price for the first quarter compared to the fourth quarter of last year. There are big differences between the two quarters, the first quarter and fourth quarter of last year. Could you please talk about the reasons for this difference? The second question is, could you provide us the contract you have signed in terms of the non-plan power generation and also the tariff discount for this part? The third question is, we notice that in the first quarter, your cost has been increasing a lot. Could you please talk about the detail about that? Is it the increase of the variability or other costing increase? Could you please provide us your full year guideline? The fourth question is, fourth quarter of last year, you mentioned that you have 15 power plants making loss. Could you please talk about the loss-making power plants in the first quarter? 我来解决第一个问题。刚才燃料部的领导说标煤单价是一个含税的采购的标煤单价，就是跟我们这个是变到单位端成本，还有一个就是从财务角度反应来说，还有一个叫不含税的耗用的标煤单价，就把税后储位再加上厂里的一些厂内的管理成本。所以说这个数今年一季度除税的耗用标煤单价是729.67元每千瓦时，四季度是687.43元每千瓦时，这相当于上涨了6%。 In terms of the coal price, we say the standard coal price we have given is the coal price including the tax. This is the price for the purchase of coal. In terms of the standard coal price for the consumed and also excluding the tax for the first quarter of this year, it was CNY 729.61 per ton, comparing to the first quarter of last year, CNY 687.43 per ton, accounting about increasing by 6%. 还有一个，从不含税的标煤单价跟燃料的变化比率也不完全一致，还有影响的是，因为我们从这种燃料的计算是从耗用的，等于采购这些移动的加权平均这种会计上的这种算法。因此，因为电厂大概平均有15到21天的储煤的影响，因此这两个比率从纸面上来看可能会有一些微小的差异。 The differences may come from the different calculations and also the lagging behind for the inventory rate of our coal, which is about 2-3 weeks. 我把这三、四、一块回答了，因为又是再回那第二题。第三个问题是问财务成本。财务成本从我们今年整体来看，一季度综合的财务成本是4.16%，去年全年是4.27%，今年四季度大概是4.3%。因此，从综合财务成本来看，今年4.16%目前我们预测应该是一个最低水平，因为今年一季度以来，尤其是从1月份以来，银根持续收紧，融资成本是持续地提高。我们感觉从二季度或是以后，可能会有小幅上升。 In terms of our cash cost, for the first quarter, it was 4.16%, which is maybe the lowest level comparing to the fourth quarter's 4.3% and the whole year's 4.27% last year. Entering the second quarter of this year, we say there is a situation of the tightening of maybe the supply of the funds. So we say in the future, these costs will be increasing a little bit. 你刚才问到的这个，财务成本的这个供给的变化是略有上升，主要原因是债务规模的同比上升影响了大概是4.5亿。然后这个债务利息平均利率的下降减少了6.2亿。这么个影响。 Specifically for our total debts increased about CNY 450 million, and our interest is decreased by CNY 620 million. 关于你问到这个第三个问题，从这个我们现在这个季度，自从收购完项目之后，我们现在这个电厂，大概我们现在总计的这个季度是127家，就是跟可能去年四季度有加持很多关系一样，其中是87家盈利，40家是亏损。亏损面大概是31%，比去年四季度应该是略有上升。 Actually, for the first quarter after the completion of the acquisition, we totally have 127 power plants. Among this, we have 87 power plants making profits and 40 power plants making loss, accounting about 31% of loss-making power plants. This figure is higher than that in the fourth quarter last year. 关于已经新建的这个交易电量，到目前为止，这个一季度，已经签那个交易电量大约是550亿。这个价格我手头没有，我们应该大概有一个数字，这个经过会后，可以我们再提交给证券部，到时候再提供。 In terms of the long plans project, we have signed the contract with the amount of 55 billion kilowatt hours. We do not have the settled figures for the tariff, maybe we reply later. 关于这个公司我没有问题。感谢您提问，和感谢管理层的耐心解答。大家好，下面一位提问者是来自汇丰银行的黄媛媛。您好，有请。王总，就是两个问题想确认一下，因为前面已经问了，就是之前说那个大用户直供电的这个价格的，就是跟标杆电价的那个折扣幅度收窄，收窄大概四分，这个是从去年全年相比，还是从去年四季度相比？然后第二个问题是关于这个亏损电厂的，那如果不加，就是我们新收的这个电厂的话，那今年是还保持在去年的14%，还是说也增加了？ From HSBC. I have two questions. Firstly, it is about your tariff discount. You mentioned that the discount rate is about CNY 0.04 lower. This is based on the whole year figure or the figure in the fourth quarter last year? The second question is about the loss-making power plants. Could you talk about whether this loss-making power plants increase or decrease excluding the newly acquired power plants? 刚才说的交易电价这个降幅的这个减少是跟去年一季度相比。 The tariff discount is comparing to the first quarter of last year. We will give the figures for the loss-making power plants, excluding the newly acquired power plants from the parent company last year. 今年特变电工这个变压器项目，总共是19家盈利，9家亏损。 Because of that, we have 19 power plants making profits and 9 power plants making loss. 好，谢谢。非常感谢您的提问。大家好，下面一位提问者是来自富国基金的祝艳迪。您好，有请。喂，你好，王总。喂，听到吗？你好，请讲。我有两个问题，一个是现在公司有没有匡算对于燃煤电厂这边，大概在盈亏平衡点，那个煤价大概现在应该是，比如说以秦皇岛作为大概基准，大概多少钱是盈亏平衡点？然后另外有没有可能近期比如说政府会缓解电厂压力，会上调，比如说五厘到一分钱，比如说以这种基金补贴的形式，这种可能性有没有？第二个问题就是关于原来发改委有计划，就是今年3月15号以后新投产机组都没有计划电量了。我不知道公司最近有没有投产的，然后这个方面的确是不是没有计划电量了。这方面大概怎么执行的吧。好，谢谢。 Actually, three questions. First is, could you please talk about the coal fired power plant. What is the break-even coal price for these power plants based on the QHD coal price index? The second question is about the tariff or the subsidy from the government. Do you think it's possible for the government to increase the price or give subsidy to the coal fired power plants, power companies for reducing its operational pressures? Third question is, could you please talk about the company's situations, just because the government has a new policy that the coal fired generating units will have no planned power generation since March of this year. How this policy has been implemented? 从零值平衡测算来看，其实我们还是根据年初今年的全年的预算安排，零值平衡点的测算，因为当时我们目前的测算电价比实际是略有降低，因此这个测算是220。就跟刚才报的222大家的成本是基本差不多，因此也可以说近似目前一季度的情况，因为我们是略有盈利，就相当于是一个盈亏平衡的状况。 Actually, based on our first quarter actual operational situation and also the tariff level of 220 RMB per megawatt hour, we say this may be the unit fuel cost break-even level for us right now. 我回答一下刚才这位先生提的问题。刚才我们营销部的乔经理已经解释了，就是关于电价这个联动的一个情况。现在国家发改委以及国务院已经注意到我们五大发电集团，特别是煤电机组，现在经历困难的一个情况。最近又召开了几个会议，请有关的发电公司参加，煤炭企业参加，研究怎么稳定或者适当的降低煤价。同时在这种情况下，是否符合我们的电价这个联动的这个政策，是否对联动，可能国家发改委还要综合进行一些平衡，看看我们现在的经济发展的情况，以及我们煤电企业的承受能力，还有煤炭的市场价格等等情况，可能会做决策。 Actually, Mr. Zhou has talked about the housing fuel policy. We've noticed that recently the CERC and also the NDRC, the related government agencies had meetings to discuss how to stabilize the coal price, and also to discuss how to optimize the housing fuel policy to ease the pressure of the coal fired power users. But this will be really up to the government decision and also, it will say the market actual situations and also the capacities of the power users and the coal suppliers. 根据现在煤电机组面临的实际困难，我们也向国家发改委进行建议，能够调整煤电联动的现在目前的一个办法，尽量能够反映煤炭和电力both双方的联动的一个机制。 Being on the difficulties facing by the power users, we actually, CSIC, have suggested to the government that they should adjust the housing fuel policy and its mechanism to fully reflect the actual situations of the power suppliers and power producers and the coal suppliers. 关于这位先生提的另一个问题，如果我没有记错的话，国家的政策是9号文发布之后，完了核准的机组不再安排刚才我们对工程部张经理也确认了一下，就目前为止，我们的投产进度还不受影响。 For the third question, actually the policy should be that the new approved power projects after the No. 9 Document will have no base load hours. Based on this policy, currently our power projects have been no impacted. 这个时间点的话，是2015年3月31日。 The benchmark for this implementation was March 16 in the year of 2015. 请问这位陈记者还有其他的问题吗？没有了，谢谢。好，感谢您的提问。大家好，如您需要提问，请在号键上按星键导航后，先星号键，暂时4键1。As a reminder, if you would like to ask any questions, please press star 1 on your telephone keypad. Thank you. 下面一位提问者是来自招银国际的肖小川。你好，有请。你好，招银国际的肖小川，您这边声音是放开的，您可以提问了。你好，我这边没有问题了。好的，感谢您。下面一位提问者是来自瑞信香港的戴维。你好，有请。黄总你好。我这边有几个小问题，依旧是想问一下，一季度60多亿盈利里面，有多少盈利是来自于我们新收的电厂，大概有几亿？第二就是刚才也提到，解释了一下煤价的变化，感觉上从单元成本的话，一季度比四季度还是要涨了一点。我想知道从趋势来看的话，是不是最高点已经过去了？那我们要是看二季度的话，我们就先不假设煤价会跌多少，按现在这个位置的话，是不是二季度的平均煤价应该是比一季度稍微低一些？然后最后一个问题，刚开始有一个问题我好像没太理解，就是我们净资产的一个变化，跟去年一季度比，我看这个资本公积是下了将近150亿，我想知道主要原因能不能再解释一下？然后还有资产那一面的话是怎样看的？就这块起来的话，在资产那边是怎么样的变化，谢谢。 Actually three questions. First is that the profit contribution from the newly acquired assets for the first quarter of this year. The second question is, we say that the unit fuel cost for the first quarter is higher than that in the fourth quarter of last year. Does it mean that the unit fuel cost is the highest level recently? We understand that in the second quarter, the unit fuel cost will be lower than the first quarter of this year. Also, third question is the following question about the asset decrease. We say that the asset decreased by CNY 15 billion compared to the last year. Could you please talk about the reason for that and how this will impact the asset adjustments? 我先说一下这个头一个问题，就是今年我们这个利润是CNY 6.52亿，其中这个变项是CNY 0.48亿。 The first question is, among our total net profit, CNY 652 million, we have CNY 48 million coming from the newly acquired power plants. 今年一季度，整个的煤炭价格确实还是处于一个高位，而且呈现了一个先抑后扬的这样一个趋势。那么主要的原因就是受春节的影响，以及环保安全检查的影响，煤矿复产不及我们的预期。同时，加上一季度从火电的需求，煤炭的需求也好于预期，再加上水电也是出力不足。另外，四、五月份库存也是偏低，所以受这些因素的影响，导致一季度煤价总体是处于一个高位。那么我们现在也预计二季度随着煤矿的一些复产复工，以及先进产能的一些加快的释放，煤炭的产量会进一步的增加。那么另外国家从政策方面讲，应该说经营度也会更高。一个是国家对电煤的一个中长期合同，要去进行严格的检查，严格的执行。另外国家也出台了一些相应的制度，包括库存的制度，来稳定煤炭市场的预期。另外，国家发改委应该说也已经明确了，2017年也没有必要再大规模地实施减缓发电的措施，也就是276的政策，目的也是引导煤炭价格在绿色区间来运行。通过这样一些措施，预计煤价会逐步地回落到绿色区间。 In terms of the coal price, we believe that we may be having the highest coal price level since the past quarters, just because of the first quarter reasons and also the national reviewing of the safety concerning. We say there is a strong demand from the market component with the reducing power from the hydropower. Combining all the actual situations and also the capacity regulations from the coal suppliers and the safety implementation of the government policy, we expect that the coal price will be in the reasonable and the green zone of the coal price, which is between CNY 500-CNY 570 per ton. 你问的第三个问题，比较具有会计的专业性。第一个，中国水电下同一控制下的合并报表抵消的规则影响。因为山东公司的几项项目的单位都属于国资母公司，中国华能集团公司所有。因此在这个规则底下，它要求长期投资跟资本公积进行双方的抵消。具体操作来看，母公司，比如说股份公司，第一步相当于借了152亿，然后增加了152亿的现金，增加了152亿的债。然后现金是收购给这个母公司之后，就变成长期投资，等于资产没变化。然后合并完的山东公司，就等于说这152亿是跟权益方的152亿资本公积进行双方抵消。所以最终的结果也相当于是资产没变化，债务增加了152亿，权益减少了152亿，整体的资产如果仅就这个因素来说是没有影响。 The net asset difference is just because of the combination of the newly acquired assets, which is controlled by the same controller, China Huaneng Group, which is also the parent company of our company. The consideration of the CNY 15.2 billion will increase our cash and also the liabilities. This long-term investment will be offset by the surplus. In general, we say the liabilities and also the net assets will be increased by CNY 15.2 billion, but in general, there will be no change in the assets adjustments. 好，谢谢关先生。非常感谢您的提问，以及关先生的详细解答。大家好，下面一位提问者是来自中金公司的徐王先生。你好，请。关先生，你好。这边还有两个小问题想请教。刚刚你也提到，我们对煤价的一个预期展望是它会下跌到一个绿色水平。我想请教一下，根据我们这个同比标煤单价上升15%的guidance，那我们预期的是后面九个月的一个平均的标煤单价大概是多少？这个我们隐含的预期大概是一个什么样的水平？然后第二个就是关于我们之前做了一个A股那边增发，那之后的话母公司资产注入还会不会继续，然后母公司就是华能集团那边有没有一个资产证券化比例的要求，像国电投我们了解是有个70%的一个要求，就不知道华能这边有没有一个相应的资产证券化要求，对于未来的一个资产注入大概是一个什么样的看法，就是是不是还会像以前那样做一个A股增发来买母公司煤电资产这边的一个动作。主要是这两个问题。谢谢。 That's two questions. First is about the coal price expectations. You mentioned that the coal price will be falling to the reasonable zones. You have mentioned that the whole year guideline for your EBITDA cost trade will be 15% year-on-year. Could you please provide us the specific coal price for the following three quarters of this year? The second question is about, actually, you have acquired the asset from parent company last year, and also you mentioned that you are going to issue a new share in the A market in China. Could you talk about your plan in the future whether you will use new share to buy the asset from parent company? 我们17年按照中国来的综合单位燃料成本同比上升15%来看的话，我们的煤价大概要在每吨¥700左右。那么按照我们一季度的这个情况，我们在二、三、四季度确实还需要进一步的下降，煤价要下到¥700元以内。就目前我们对整个市场的形势的分析来看，因为国家发改委相关的要求，煤价要尽快地回到绿色区间。如果按照绿色区间来算的话，应该是还有希望来完成这样一个目的。 For the coal price. We have a 15% guideline for the whole year. This was my pricing on the standard coal price of CNY 700 per ton. Based on the first quarter figures, we say it is really difficult for us to control the coal cost. That means that in the following three quarters, the coal price should be lower than CNY 700 per ton. NDRC has a strict guideline that the coal price should be according to the reasonable zone. Based on this range of coal price, we can realize the whole year guideline. 我想插一个小问题，就是我们之前说到长协的比例是48%，然后发改委应该是前几天有一个guidance说需要履约率达到75%，就是想问一下，我们会不会通过长协的比例增加来使得煤价实现一个下降，因为长协价格比市场要低一点。 Actually, the following questions are the long-term contracts. Actually, you have 48% of the long-term contracts. Also, NDRC has outlined for the contract honor rates no less than 75%. Does the company want to increase the long-term contracts to reduce the average coal cost? 就目前来看，我们的长协的价格应该是相对来说还是偏低的。确实我们下半年要通过加大长协执行的力度来降低我们的煤价。发改委最近也要对中长期合同的履约情况进行一个严格的检查。那么下半年我们也会加大长协合同的履约，尽量增加长协合同的比例。 What we are going to do is to increase the honor rate and also to increase our long-term contracts of our coal purchase. 刚才这位先生提的第二个问题，我们听得不是太准确，请他再说一下。他刚才提的。对，因为我们知道国电投他们有一个资产证券化的要求，就是75%达到资产证券化率。就不知道华能集团那边有没有相关的国资委的要求，说资产证券化率达到多少。然后华能国际这边作为华能集团下面比较大的一个上市公司，就会不会从华能集团那个资产证券化率要达到一个比较高的水平，所以未来还会有不断的一个比较大的资产注入，这主要是这个问题，就是集团层面是不是有个比较高的资产证券化率的要求。 The second question is, we know that the State Power Investment Corporation Limited group has a 75% for its asset securitization rate. Does the China Huaneng Group also have a similar percentage of the asset securitization rate, so that Huaneng Power as maybe the largest platform within the China Huaneng Group, has the extensive demands to acquire new assets from the parent company to reach the securitization rate? 我们从华能国际这边，我们没有得到华能集团那边有明确的资产证券化比例的数字。那么我们这边从上市公司做资本运作，是会根据公司的实际需要，包括融资，也是根据市场情况和公司的资金需求来做决定的。 For our company, actually, we do not receive any guideline or notification that the China Huaneng Group has this securitization rate target. For our company, I would say it is really up to the market demands and the situations, and also the company's demands to the funds to make the issue and also the acquisitions from the parent company. 好的，谢谢。最后有一个小问题想请教一下，就是因为最近国企改革的方案，国资委那边也有一些国企改革方案，里面有明确说电力这个行业也会有一些国企改革的事件发生。我就想问一下华能这边有没有相关的一些comment或者看法。 The fourth question is the SOE reform. The NDRC has released some SOE reforms, including the power sector. What do you think of this and what will be the impact of Huaneng Power? 这个国企改革，这肯定是一个大的方向。就我们华能而言，现在还没接到上级单位具体的一些改革方案或者要求。但是我们想，这改革肯定是对我们企业的发展是有利的。 Sure. We believe that the reform will be the future trend in the SOE reform sectors. Currently, we do not receive any requirements on the distribution from the government, but we do believe this is a good thing for the company's development. 好，谢谢。没问题。感谢您的提问。大家好，由于时间的关系，我们有请最后一位提问者。最后一位提问者是来自瑞银证券的Tian Liu。你好，刘青。管理层你们好，有两个小问题。第一个就是我们刚刚说了很多这个叫缓建跟停建的情况，能不能够说一下现在你们感觉到关停机组这一块，就是现有机组，那些小机组关停，有没有看到政府是加抓紧了，要关停更多的机组呢？然后第二个问题呢，就是想问一下，燃料成本里头现货煤跟长协煤，刚刚说的是2017年一季度的情况，能不能够跟我们说一下2016年四季度的情况，那个量跟价格是怎么样？谢谢。 I have two questions. First is, you have mentioned that the government has postponed and will shut some projects. Could you please talk about whether the government will consider to shut down the small generating units in a relatively higher perspective? The second question is about fuel purchase. You have mentioned the percentage and the price for the spot market purchase and the long-term contract rates at the first quarter. Could you please talk about the fourth quarter of last year? 这个我回答一下这位先生第一个问题啊，刚才因为已经说了，就国家的政策，关于淘汰落后产能，主要集中在除名的小机组，和超期服役的机组上。那么请大家相信，我们华能因为做了很多，这些年一直在做这生产改造，我们在这方面是占优势的。 For the first question, as I said, the government shutting down plan for the small unit is focusing on the pure condensing small units, which is not the whole generation power generation units, and also the very old small generation units. For our company, as I said that we have made lots of renovations on the small units. For example, to transfer these units to the cogeneration units. So we have this, maybe the advantage in terms of these innovations. 另外一个就是关于小机组，在国家层面上也非常重视，也非常慎重。可能就是说这个具体的关停方案，要等到国家有关的部门出文件为准。 For the shutting down, this is very important. The government is very prudent to release the regulated plan. So we will say whether the government will release the annual plan for this. 这个有时间点吗？ Is there any timetable for the shutting down? 这个我来接着刘总那边，补充一下，回答一下您的问题。国家能源局于2017年1月份，连续下发了13个省份的停建缓建的煤电项目清单。这个是刘总刚才说的国家那三一批中，缓建一批政策的深入落实。 In January this year, actually the National Energy Administration has released regulations for the postponing projects list in the certain provinces in China. 它这个就是国家能源局下发的，它是以关于衔接某某省十三五煤电投产规模的函，以这样的一个形式下发的。具体的时间没有说，没有说得太细，而且它这个是以衔接函的方式来弄的，还需要各个省发改委，跟各个省的投资发电集团，还要再具体的衔接。所以，这只是一个衔接函，没有具体的时间，也没有一些特别具体的项目，这个等于还是一个协商的机制。 Well, the government just released maybe a general framework notification. It is really up to the discussion and also study by the local government and the local power business and the related parties. So currently, there is no timetable for this. 现在我再说一下刚才你说的这个，关于煤炭采购的长协和市场煤的情况。刚才我已经说了，就我们这个一季度，我们采购的长协的煤量是1,905万吨，那么占比是47.9%，这是今年一季度的情况。那么去年四季度的情况就是，去年四季度长协的采购量是1,379万吨，那么占采购量的总共是百分之三十几，这是长协的情况。价格是今年一季度的长协价格是547元每吨，那么去年四季度是554.8元每吨，这个是价格的情况，这个是长协的情况。那么市场煤的情况，今年一季度我们市场的煤采购，一季度是2,074万吨，占比是52.1%，价格是574元每吨，这是今年一季度的情况。去年四季度的情况，市场煤量是2,157万吨，占比是61%，煤价情况是571元每吨，这是去年四季度的情况。 For the coal purchasing price and the structure. For the first quarter of this year, we have 19.05 million tons for the long-term contract, accounting 47.9% with the price of 547 RMB per ton. For the spot market purchase, we have 20.74 million tons accounting for 52.1% with a coal price of 574 RMB per ton. In the fourth quarter of last year, for the long-term contract, we have 13.79 million tons, accounting for 39% with a coal price of 554.8 RMB a ton. For the spot market purchase, we have 21.57 million tons, accounting for 61% with a coal price of 571 RMB per ton. 好的，谢谢管理层。 [Foreign language] Thank you so much for all the questions and participation today. [Foreign language] Finally, Mr. Liu would like to give us the summary. 感谢各位参加华能的业绩会，感谢各位一直以来给予公司的大力支持和持续关注。今天的电话会议到此结束，如果有进一步的问题，欢迎大家会后与公司投资者关系处联系。谢谢大家。谢谢主持人。 Thanks for attending Huaneng's conference call and thanks for your long-term support and lasting attention to the company. Today's conference call is going to the end. Please contact our investor relations department if you have any further questions. Thank you and thanks lady anchor. 再次感谢各位出席华能国际电力股份有限公司 2017 年一季度业绩发布会，我们期待下季业绩时再见。Thanks again for your attendance of the conference call regarding the first quarter results announcement of 2017. We are looking forward to meeting with all of you in our next results announcement. Thank you.