Earnings Call: Q3 2017

Oct 25, 2017

Earnings release

Ladies and gentlemen, on behalf of Huaneng Power International, I would like to welcome you all to the conference call regarding the third quarter results announcement of 2017. [Foreign language] Now, may I introduce the management of the company today. [Foreign language] The Vice President of the company, Mr. Li Jianmin. 女士们、先生们，大家好。公司副总经理，公司总会计师黄立新先生。The Chief Accountant of the company, Mr. Huang Lixin. 黄总，您好。你好，大家好。 [Foreign language] The general managers for Department of Budget, Corporate Management, Engineering, Production, Marketing, Fuel, Finance and Capital Market, as well as the Office for Trust Business are also joining us today. [Foreign language] The Chief Accountant of the company, Mr. Huang Lixin will review the business performance for the third quarter results, followed by Q&A session. [Foreign language] Now, please let us have Mr. Huang to review the business performance and Mr. Li Chaoran will conduct English interpretation. [Foreign language] 好。女士们、先生们，大家好，欢迎各位参加华能国际三季度业绩推介电话会议。 Ladies and gentlemen, good afternoon everyone. Welcome to join Huaneng Power International Third Quarter Results Announcement Investors and Analysts Conference Call. 公司刚刚公布了今年前三季度的经营业绩。按照中国会计准则，公司2017年前三季度实现合并营业收入人民币1,110.74亿元，比上年同期上升10.79%。合并报表归属于本公司股东的净利润为人民币28.6亿元，比上年同期下降74.3%，每股盈利为0.19元。 Yesterday, the company just announced its business performance for the first three quarters of this year. According to PRC GAAP, for the first three quarters of 2017, the company realized records consolidated operating revenue of RMB 111.074 billion, representing an increase of 10.79% over the same period last year. The net profit attributed to the equity holders of company was RMB 2.86 billion, representing a decrease of 74.30% compared to the same period last year. The earning per share is RMB 0.19. 前三季度公司发电量和营业收入都实现了同比上涨，但由于燃料价格的大幅上升，导致公司净利润同比下降。 For the first three quarters, even though the total power generation and operating revenue realized a year-on-year increase, the hike of fuel price lead to year-on-year decrease of net profit of the company. 四季度，公司将继续坚持以质量和效益为中心，加快电源结构调整，全力推动清洁能源项目按计划投产，积极参与各类市场交易，努力提高市场份额，做大有效电量，密切跟踪国家政策和电力市场改革进展，加强与国家和地方政府价格主管部门的沟通，通过煤电联动解决企业经营中的实际困难，加强燃料精细化管理，进一步控制燃料成本与费用支出，努力提升运营效率，持续为公司股东创造长期稳定增长的回报。 In the fourth quarter, the company will continue focusing on quality and effectiveness, accelerate adjusting energy structure, promote on schedule production of clean energy projects, actively participate in all kinds of market trading. Make effort to gain market share and generate effectively. Closely follow state policy and the power system reform progress. Strengthen to negotiate with the price and tariff making department of state and local governments through the implementation of coal electricity price linkage mechanism. Solve the practical difficulties of enterprise operation. Improve the detailed management of fuel. Make further efforts to control fuel cost and CapEx. In order to enhance operating efficiency, keep making long term stable and increasing return for the shareholder of the company. 下面的时间，我和我的同事愿意回答各位的提问。谢谢大家。 If you have any question, feel free to ask. My colleague and I are willing to answer. Thank you everyone. 好的，谢谢黄总的介绍。接下来是问答时间。Thank you, Mr. Huang. Here we come to the Q&A session. [Foreign language] Please state your name and your organization before question. If you would like to ask a question at this time, please press star followed by 1 on your telephone keypad and wait for your name to be announced. May I invite the first question, please. [Foreign language] The question comes from Liu Xianda, of Citibank. 好，我有三个问题想跟你们请教的。第一个问题是咱们公司在三季度那个平均上网电价是多少？还有就是三季度里头我们卖电从市场电价那些比例是多少，还有结构大概是多少？第二个问题是公司在中期业绩的时候呢，提到了今年煤价上涨大概是24%。我想知道现在2017年那个上涨24%的煤价上涨的指引，现在有没有更新的改变？第三个问题就是，咱们在三季度把一些长江水电的一些股票卖掉，想知道一共卖掉了多少？谢谢。 The first question is from Mr. Liu from Citibank. The first question is what is the company's first quarter average on-grid tariff and about the on-planning power sales, the portion and the discount rate. The second question is the coal price this year is high, about 24%. We want to know the guidance of coal price in the next year from the government. The last question is, our company just recruited the Changjiang shares. We want to know why. The Changjiang shares, we want to know the reason why we do that. 不好意思，第三个问题其实我是想问，那个长江水电卖了多少股票？ The last question is how many Changjiang shares we sold? 尊敬的刘先生，现在由我来回答你的第一个问题，就是本公司三季度的平均电价是每千千瓦时¥0.412元。这个是第一个，就是三季度的电价。另外一部问题就是三季度的这个交易，你说的是交易电量的比例和交易电价是吧？对。截止17年三季度，公司结算的交易电量是809.16亿千瓦时，同比增加了368亿，交易的比例是30.19%，同比增加了5.98个百分点，交易电价是354.66元每千千瓦时。我的回答完毕。 The first question our answer is the on-grid tariff for the first three quarters is CNY 0.412 per kilowatt hour. The on-planning power sold, the total on-planning power sold is 18.916 billion kilowatt hour, representing an increase of 368. The portion of off-planning power sales for the first three quarters is 30.19%, representing an increase of 5.98%. 关于第二个问题，是这样的，就是公司前三个季度财务的燃煤价是完成了543元/吨，这个价格确实是略高于我们的这个指引。但是近期国家发改委也在采取一系列的措施，释放产能来保证降煤价，那么调整的目标就是要将煤价控制在500到570元的这个绿色区间。那么鉴于此，我们就不再对全年的煤价指标进行调整，那么还是按照这个同比增加24%来进行控制。 [说话者2轻声笑] The company's raw coal purchase price is around CNY 550 per ton. According to the government's guidance, the government is trying to ensure the supply and stable the price. The guidance of the price is still CNY 500 to CNY 570 per ton, AKA the green area. We still expect that 24% hike for the coal price. We sold 0.12 billion shares for Changjiang Power, which we sold all our shares. The question comes from Zhou Tianyu of Credit Suisse. From September to October, the coal price from the spot market is pretty high right now. We want to ask the benefit-and-loss balance for the coal unit. Also because of the hike of the coal price, we want to know whether the pass-through mechanism will be implemented. The second question is, we want to know the second and third quarters, the average on-grid tariff of coal unit. For the first question, the National Development and Reform Commission, they have a mandate for the pass-through mechanism. The implementation cycle is one year. The mechanism tries to linkage the electricity coal price. When the fluctuation is above 2 cents, it will trigger the mechanism. We will advocate the government trying to implement the mechanism. For the second quarter, the settled on-grid tariff for coal unit is CNY 389.61. For the first quarter, the tariff is CNY 395.77. 下面有请德意志银行 Michael Pong 提问. The question comes from Michael Pong of Deutsche Bank. 我有三个问题。第一个就是刚才说的电价，从二季度和三季度的电价变化趋势来看的话，好像是7月1号的电价涨幅还有一点显得比较小。请解释一下，是不是直供电的价格价差和份额的扩大，造成了季度环比的变化，跟7月1号价格电价上来的幅度比相对比较小。第二个问题就是请管理层梳理一下，今后两年在供给侧改革的情况下，你们的一些准备在建的火电项目有没有一个新的规划？包括在山东、江西的几个火电，还有可能在建的燃气机组。第三个问题就是关于公司的分红政策。我是想问一下，今年明明因为受到的煤价影响比较大，但是明年在考虑分红的时候，会不会适量地考虑分红率，通过其他方式来维持一个相对比较稳定的分红水平。 Mr. Pong from Deutsche Bank. I got three questions. The first one is still about the tariff. For the second quarter and third quarter from July 1st, we estimate that the tariff will be high. But actually after you post the announcement, we found that the tariff is increasing lower than our expected. Why is that? Is it the reason that the portion of direct power sales is rising? The second question is about supply side reform. We want to know our new plan for a new project about the thermal unit construction. The third question is about the dividend policy, because we know our business performance is adversely affected by the coal price. So we want to know, can we still maintain a higher rate to have a stable dividend? 7月1号国家煤电价格调整应该是超过1分钱，但是反映在综合电价上，由于公司的交易电量的比例现在已经达到了30%，同比增长了5.98个百分点。这个电价是比较低的，所以拉低了最后的平均综合的电价水平。 From the July 1st, from the mandate of the government, we estimate that the tariff will be increasing by 1 cent. But actually, the rest of power sale and the on-site power sale, the portion of on-premise power sale is higher than 30%, representing an increase of 5.98% over the same period last year. So that's why it lower the average tariff. 我回答一下这位先生，在今后两年对一些相关的火电发展的项目计划，现在从18年、19年，我们仍然是以清洁能源为主的发展目标。另外，在山东，在江西，可能在江苏，我们仍然有个别的火电或者大的燃机的项目在计划之中。我们也要根据国家的政策慢慢地看发展的前景。回答完毕。 For the next year, 2018 and 2019, we still will focus on clean energy and renewable energy. But in some provinces like Shandong, Jiangxi and Jiangsu, we will have some gas turbine projects in those provinces. We will stick to the national policy and try to focus on the clean energy. 关于分红的问题，我觉得现在讨论明年分红方案的一些具体细节还是不具备条件。但是公司的分红政策是在章程里头对外公布的，大家都很清楚。那么我们每年分配的比例就是在可供分配的50%以上，是有这么个分红的政策。那么我们回过头来看我们的历史上，有两个年份是比较特殊的，一个是08年，上海有亏损的时候，我们公司也是处于亏损，但是我们坚持了分红。另外就是10年，10年也是经营情况不是很好，但是我们当年的分红的比例，也就是我们的派息也远远超过了50%。就解释到这里。 When we talk about the dividends, right now, it is still early for the details for the next year. If you want to know more about our dividend policy, please refer to our company's provisions and regulation. In our regulation, the dividend payout rate is higher than 50%. Even in 2 years, especially for 2018, even the whole industry is in loss, we still stick to the dividend and payout dividend. in 2010, even though our company was not doing well at that time, we still have payout dividends and the payout ratio is above 50%. [Foreign language] The question comes from Zhu Yi of JP Morgan. 彭总领导，你们好。我有三个小的问题。第一个问题，刚才咱们也谈到煤电联动，想问一下，如果假设有煤电联动的话，比如说根据现在的煤价，大概煤电联动的可能性，这个范围大概是一个怎么样的？然后第二个问题，因为今年前三季度已经过去了，咱们对2017年全年跟2018年，利用小时，尤其是火电和清洁能源这两块，我们利用小时的判断大概是怎么样的？然后第三个问题，咱们新加坡这方面，今年业绩会有改善吗？然后比如说我们未来有什么计划？谢谢。 This is Mr. Zhu from JP Morgan. He has 3 questions. The first one is about the pass-through mechanism. He wants to know, according to the coal price, right now, the coal price is pretty high. He wants to know, if the mechanism is implemented, the range of tariff adjustment. The second question is for 2017 and 2018, the utilization hour of thermal unit and the renewable energy. The third question is about our company in Singapore, Tuas Power. He wants to know whether the business operation will be getting better, and what is the plan for the Tuas Power. 根据目前电煤价格上涨的情况，我们进行初略的粗算，煤电联动的幅度大概在1分5到2分之间，这个数可能还不太确定。你那个公式都可以自己算的，这是一个。关于利用小时，目前17年公司计划的利用小时是3,800小时，目前公司没有调整的计划。对于明年的小时数，我们预测明年可能基本维持这个水平。 For the pass-through mechanism, we estimate that the range is from 1.5 to 2 cent. Right now, we are not sure about the price. Everyone has the equation, we can calculate. The second question is that the utilization hour this year, we estimate is 3,800 hours. We haven't adjusted for the next year. For the next year, it is still that number. 关于新加坡的运营情况，由于新加坡电力及天然气的双重固损，目前新加坡的售电的毛利水平没有明显的恢复。所以新加坡大士能源的业绩看不到有明显改善的趋势。 We do have some problem in Singapore. The supply exceeds the demand. The net profit is not recovering right now. We cannot see a recovering right now. 但是随着裕廊岛供应用户的用量的增加，我们在裕廊岛上的登波斯项目，今年下半年以来，我们持续处于盈利状态。对于先导性信号，应该说预示着将来新加坡电力市场上的需求会有一些提升。 We have a project in Jurong Island. Right now, the customer is increasing by using the gas. We think this [Foreign language] a good point for, maybe it is the indicator of the recovery. The steam consumption is increasing. [Foreign language] The question comes from Li Chen of Sunshine Insurance. 你好，管义强，能听到吗？可以。管义强，我想问几个问题。首先第一个问题是，我们对这个四季度交易电的比例有没有一个指引，以及对折价状态有没有一个指引？这是第一个问题。然后第二个问题是，我们目前对于今年火电这一块的利用小时的计划是多少，以及明年的火电利用小时的计划是多少？我说的是火电利用小时。然后第三个问题是关于煤价这一块的，就是公司目前的这个长协煤的占比是多少，以及这个长协煤相对于现货的话，大概是折价多少钱？主要是这三个问题。 This is Mr. Lee from Sunshine Insurance. He got three questions. The first one is, for the first quarter, he wants to know the unplanned power sales, the tariff of unplanned power sales and the discount rate in the fourth quarter. The second question is about the utilization hours for this year and next year for the thermal power. The third question is about the long term agreement of coal purchases, the portion of long term agreement, and what is the price difference between the long term agreement and spot market? 关于这个交易电比例的情况，目前前三季度公司的交易电比例是30.19%。原来我们年度预算的时候大概在25%，已经超了。我们预测四季度应该维持目前的这个比例不变，这个是第一个。第二个就是关于小时数，也回答到了，应该还是在3800小时左右。 The portion of unplanned power sales for the fourth quarter is still around 30%, remain unchanged, because we got a guidance of this year is only 25%, but right now the number is above 25%, is 30.19%. For the fourth quarter, the portion is unchanged. 你好，还有一个就是关于成本的问题。原料成本的问题，长协的占比以及—— 好的，我给你说一下哈。今年前三个季度，公司的长协的合同量总共是7861万吨，那么占比是63%，这是前三季度。那么长协前三季度的价格，原煤的价格是552.52元每吨，标煤是788.51元每吨。那么标煤的价格比市场的煤价，市场的煤价是802.34元每吨。是这样一个情况。你好，黄经理，我再追问一下一个问题，黄经理这边对于明年市场化电量的比例是一个怎么样的研判？另外还有一个是关于未来公司新增装机的计划，未来公司的资本支出对于火电和新能源这一块，大概是一个有多大的金额的指引？以及公司未来借款和股权融资是偏好于使用加杠杆的方式，还是偏好于使用股权融资的方式来应对未来的资本支出，或者是使用自己本身的现金流？这是我的两个问题。 We have a further question. The first one is we want to know the portion of unplanned power sales for next year, for the whole of 2018. The second question is about the newly installed generation capacity. What is the portion of renewable energy and other energy source? 对于明年的交易电比例，按照国家的电力改革的趋势来看，各地的电改正在加快推进，8个现货试点也在明年应该会启动。所以我们预测交易比例按照趋势来看会有所增长。这是第一个问题。第二个，跟刚才那个小时数，3800小时是全部机组的平均小时，火电预测应该在4100小时左右。 For the first further question is that on planning the power cell, our state is trying to promote the portion of unplanned power sales, so the portion will be increasing next year. Because you asked the second question about the utilization hours for the thermal power and the utilization hours for 2018 is 4,100. 你好，黄立新，刚才我还问了一个对于未来公司资本支出以及新增装机的情况，公司未来大概能不能给一个具体的数，未来准备装多少的火电，以及13五期间准备装多少的新能源，以及这对应的资本支出大概是有多少？ I still have some questions about the CapEx of our newly installed power generation capacity and what kind of energy source will you have in the near future, and the portion of clean and renewable energy. 我来回答一下你的这两年的清洁能源的占比。从今年开始，基本清洁能源的占比已经成为今年的投资资本性支出的主体，大约占了今年的资本性支出的50%。今年的资本性支出里头，其中227亿的这么一个资本性支出里头，火电的资本性支出只占到58亿，而清洁能源的支出已经到将近120亿的这么一个概念，明显的要向清洁。今后两年，每年可能将近有200万的清洁能源的发展的需求。但是明年、后年，我们仍然有一些存量的、经济条件比较好的火电项目在投产。但总体这个来讲，清洁能源的比例到十三五末，可能今后每年要有200万以上的增长幅度。火电还维持大约每年100万左右的容量投产。我的问题就这么多了，谢谢。 For the CapEx, renewable energy accounted for the dominant of the CapEx. Right now is about 50%. For the whole year, our CapEx is CNY 22.7 billion. For the thermal power is only CNY 5.8 billion. The rest is renewable and clean energy. CNY 12 billion for the renewable energy. For the 13th Five-Year Plan, there will be 200 million megawatt kilowatt hours for the renewable energy and about 100 million kilowatts for the thermal power. [Foreign language] The question comes from Liu Jin of CICC. 关先生，你们好。我想请教一下，关于我们的交易电价这一块，它会不会传导我们的电价调整？因为我测算了一下，我们三季度的电价折让好像是和上半年也差不多。但是我们从行业里了解到，长协的电价，18年初签订的话，它是一个电价绝对值，一开始不会做出电价的一个调整。所以我不知道是不是说三季度的时候，电价折让有所减少，还是我们有一些电价的浮动条款。然后第二个问题，就是我想请教一下，我们七八月、九三个月的陆路煤价，有没有可能披露一下。那么第三个问题，我要请教一下，现在有说法，我们现在五大电力是不是在已经跟煤炭企业开始讨论明年的长协的一个价格。现在听到行业内有说法说明年可能会提升电煤的一个预设区间和长协价格，不知道公司这边有没有这方面的消息。好，谢谢。 This is Mr. Liu from CICC. He got three questions. The first one is still about the on-site power sales. He wants to know the discount rate, because right now the tariff is going up. The second question is, he wants to know from July, August and September, he wants to know the coal price of Lan coal. The third question is about the coal price of long term agreement. Because right now, for the next year, we will purchase more long term agreement. That's why the long term agreement price are going up. The green area still stick to CNY 500 to CNY 517. 今年前三个季度，我们的交易电价的降幅是每千千瓦39.96元，同比少降了43.5元。这个也反映了交易电价今年应该比去年同比是上升的。另外一个就是长协是根据合同签订的情况，在合同里如果有约定，随着国家煤电联动上调，那7月1号以后就可以跟着上调。如果当合同没有约定的，就难以上调。 For the first three quarters, the discount rate is CNY 39.96 per 1,000 kilowatt hour. Which is lower, representing a decrease of CNY 43.5 per kilowatt hour. If you have agreement, the tariff is going up. If there's no agreement, the tariff remains the same. 第二个问题是这样，我先把这个煤价的情况跟你说一下。这个公司七月份的煤价是517.6元每吨，八月份的煤价是534.6元每吨，九月份是539.1元每吨。那么其中的三季度的陆运煤的价格是540元每吨，这是一个煤价的情况。关于你说的这个长协的这样一个情况，发改委在10月11号也专门召开了深化推进煤电运逐步取消中长期合同的一个座谈会。那么下一步，发改委也会继续主导这个中长期合同的一个签订的工作。目前我们也对跟供煤单位做一些初步的接触。至于你说的关于提高预设的区间以及提高煤炭的价格，我们也没有这方面任何的消息，没有听说。好的，谢谢关先生。那我第一个问题，我再追问一下，就是关于我们这个市场，就是说您刚刚说到这个合同里面，如果有相应的条款，它就会传导，没有相应的条款就不会传导。有没有可能大概说一下，我们有没有统计过，有多少的一个比例的条款是有这个传导的一个机制的。 Do we have a portion about agreement whether it will transfer to the tariff? 对不起，这现在不能提供。没有统计，手上没有。 Sorry. We don't have a data right now. For July, the coal price is CNY 571.6 per ton. For August, is CNY 584.6 per ton, and September is CNY 531 per ton. Inner Mongolia coal price in the first quarter is CNY 140 per ton. For the green area, we don't have any notice or mandate by changing the green area. 好的，谢谢管理层，我没有问题了。现在有请瑞银证券 Alex Liu 提问. The question comes from Alex Liu of UBS Securities. 管理层你们好，我有两个问题。第一个就是我们对于明年的市场化电量的占比有没有一个大概的预期和目标？另外就是当市场化电量达到一定水平后，我们对于市场化电价的折扣是不是会有一个平衡点，基本上稳定在一个固定的折扣水平上？那么第二个问题就是，近期有没有关于对于我们电企和煤企，或者电企之间的整合，从行业或是公司层面有没有一些更新的动态？好，谢谢。 This is Alex from UBS. He got 2 questions. The first one is about the on-site power sales. Can we get a guidance of 2018, the portion of on-site power sales and the discount rate. The balance of discount rate. That is, the discount rate, it's got a balance. Whether the discount rate is stable, maintained, unchanged. The second question is that whether we have news about the power generation enterprise M&A. 根据国家电力市场化的要求，刚才我也说到了，可能各地在加快推进市场化比例，现货市场也在积极推进。我们只能预测明年市场化比例可能会提高。这个比例的提高是由各地的电改地方政府所决定的。我们也会积极向各地政府反映发电企业目前面临着的成本压力，建议他们有序推进市场化。具体的比例可能现在还不能预判。关于市场化电价的平衡点问题，目前来看，各地的交易电价的水平今年应该比去年有所上涨，我们也会积极推进电改的有序化，积极维护市场价格，帮助发电企业面对电煤价格的上涨。谢谢。 For the first question, the portion of on-site power sales right now is determined by the government. We just have a rough forecast for that. We will definitely know that the portion is going up next year. Some of the portion is determined by local government. We will advocate our difficulties and our demand to the government and let them know our cost, the pressure. The second question is that the level is going up for the marketization of on-site power sales. 关于电企整合的情况，公司到目前都没有得到过比较明确的信息，更没有需要更新的一些动态。 We do not have a solid date news for M&A, and right now we have no comment for that. 好的，谢谢管理层。 [Foreign language] The question comes from Yue Tingyang of Bloomberg. 各位好，我是彭博行业研究的岳庭洋，我有几个小问题。第一个，可不可以说明一下贵公司的单位燃料成本在第一季度、第二季度和第三季度，这个趋势大概是什么样子的？然后可不可以分别说全公司的，还有煤电，只是煤电的单位燃料成本。第二个问题是一个策略的问题，就是贵公司的输电这一块，目前在全国是不是已经与几家大规模的企业有这种直供电的一些协议？然后第三个问题是关于新加坡。您已经提到新加坡的状况不是最理想，然后明年整个市场都会放开了。那么是不是对于现货电价会有一些不好的影响？就是说你们在新加坡可以得到的现货电价是不是会降低了一些？谢谢。 This is Mr. Lu from Bloomberg. He got three questions. The first one is, can we know the unit fuel cost for the thermal power and the whole unit respectively for the first, second, and third quarter? The second question is about the power retail. Do we have any contract or agreement to some enterprise in the whole nation? The third question is about the Singapore market. Tell us, next year, the Singapore market is going to be 100% marketization. Is it adversely affect the spot market price? 公司的综合单位燃料成本分季度的，我为大家报道一下。第一季度是222.08元/MWh，二季度是225.99元/MWh，三季度是227.16元/MWh。有一个缓慢上升的一个小的趋势。综合起来，1到9月份是225.13元/MWh。 For the unit fuel cost for the whole unit. For the first quarter, the number is CNY 222.08 per megawatt hour. The second is CNY 220.69. For third quarter is CNY 227.76. The unit fuel cost is a little bit going up this year. The average unit fuel cost so far is CNY 225.13. 刚才是综合的单位燃料成本，下面是煤机的单位燃料成本，一季度是213.96元/MWh，二季度是217.24元/MWh，三季度是219.46元/MWh，1到9月份的综合是216.99元/MWh。 For the coal unit. For the first quarter, the unit fuel cost is CNY 213.96 per megawatt hour. For the second quarter is CNY 217.24 per megawatt hour. For third quarter, the number is CNY 219.46 per megawatt hour. From January to September, the unit fuel cost is CNY 216.99 per megawatt hour. 截至三季度，公司大用户直接交易电量是完成673.58亿，同比增长了321.39亿千瓦时。这个是第一个售电的情况。另外一个就是关于跟战略用户，我们为了应对这个市场化，我们也在积极推进和有关的用电大户，正在进行沟通，签订战略合作协议。目前正在推进过程中。但具体的细节，因为涉及商业机密，不方便告知。如果有了重大进展，我们将会通知各位。 For the first three quarters of this year, the contract is worth CNY 67.3569 billion, and it is representing an increase of CNY 231.39 per kilowatt hour. Right now, we still have a strategic cooperation with the big customers for direct power sales. Because this is involved in business secrets. Right now it's not convenient to disclose more news. If we have more details, we will tell you guys. 我回答一下新加坡电力市场。就像你说的，2018年新加坡就采用全零售售电策略，就是full retail contestability。所以它会对新加坡电力市场的整个电价产生影响。 For Singapore, for next year, they will have a retail strategy. They will definitely affect the tariff. 但是这个影响今年已经开始显现。所以说今年的现货市场，就是你说的现货市场，就是pool market，它的毛利水平是负毛利，就是10个新元每兆瓦时，这个是不可持续的。 The affection is showing up right now from the spot market. The profit is about 10 SGD per megawatt hour. 它主要的原因是因为天然气照付不议的影响。所以随着天然气照付不议在2018年的影响的减弱，我们期待着现货市场，就是pool price，会逐渐地恢复，这是一个。第二个就是关于零售市场的价格，因为刚才说的是负10新元每兆瓦时的零售市场价格负毛利，使得今年的零售价格也受到了很大的打压。我们也判断到明年现货市场价格平稳以后，零售市场的价格也会逐渐地恢复。我们对于全零售开放的策略也是比较乐观，我们觉得全零售以后，可能使得整个的市场价格会有所恢复。 For the tariff, from the spot market, we just say that the profit is -10. This is mainly because of the natural gas. If the spot market recovers, it will lead to the recovery in retail markets. Right now, we are positive about the retail market. 市场分析师，我再补充一个问题可以吗？就是关于单位燃料成本，大概比四季度是不是在增加的一个趋势呢？谢谢。 We still have one more question about the unit fuel cost. We want to know the unit fuel cost for the fourth quarter according to the coal price. 四季度，根据当时的情势来看，随着国内制约煤炭产量增加、民促的减少，煤炭产能置换、核增以及一些煤矿逐步合法化等释放产能措施的累积效应逐步显现。那么我们预计煤炭的供应状况将会得到一定的改善。从四季度的情况来看，应该说产量会得到一定的释放。同时从需求来看，四季度水电的减量应该说好于去年同期的概率还是比较大的，这也会减少四季度电煤的消耗。另外，京津冀以及周边地区已经明确四季度要实施工业企业秋冬季错峰生产，也将减少秋冬季节的一段煤炭的消耗。所以说我们预计四季度的煤炭供需偏紧的局面将会有所缓解。所以说我们预判煤炭市场在国家层面保供降价这样一个政策的引导下，煤价将会有所回落，并逐步地回到一个绿色区间。所以说我们预计四季度的加权平均应该是有所回落。 For the fourth quarter, according to the production capacity for coal market, the supply is not that tight because the government is trying to urge to release the priority production. Also, there will be a strong output for hydro. The hydro output is better than last year. Also, from Jing-Jin-Ji area. In the winter, the government urged the company and the enterprise to produce in different sections. That is why we think there will be more supply in the market. It indicates that the coal price will go back to the green area. 非常感谢，王记者。现在有请长江证券，金玲提问。The question comes from Ling of Changjiang Securities. 管理层您好，我这边有三个问题。第一个问题就是您这边刚才说的是今年前三季度的市场化电量是30.19%，那请问单独的第三季度市场电的占比是多少？而且市场化的电量的折价的幅度请问是多大？然后相较于上年同期水平的话，它的变化情况。这是第一个问题。那么第二个问题，想请教一下三季度的咱们入炉的标煤单价水平是多少？然后环比的变化的一个具体情况。第三个问题，我想请教一下公司三季度的少数股东损益的占比是比上半年要大幅下降，请问具体的原因是什么？ This is Mr. Jin from Changjiang Securities. You have three questions. The first one is, the management just told us that the proportion of marketization for the first three quarters is 30%. We want to know for only the third quarter, what is the proportion of on-premise power sales and the discount rate and the changing rate? The second question is about the unit standard coal price. The third question is that the gain loss is pretty lower than last year. What is the reason for that? 三季度的耗用的标煤价综合来看是745.15元/吨。第二季度是741.98元/吨。对，原煤吨。然后环比略有上升，增长了0.23%。 For the coal consumption, the first quarter is CNY 345.15/ton, and the second quarter is CNY 741.98/ton, representing a slight increase. 关于刚才这位先生问到少数股东权益占比，从报表上看的确实是略有变化，主要影响因素是今年这个原煤基础的亏损面有所增加。从这个股权结构来说，没有任何变化。 For the gain loss portion is going down, it is mainly attributed to the loss-making coal unit getting more than last year. The structure of the shareholder is remaining unchanged. 现在有请华泰证券，刘旭彤提问。 The question comes from Liu Xutong of Huatai Securities. 管理层好，我有两个问题，主要是关于市场售电这一块的。第一个就还是价格这个问题，我们说三季度对于标杆电价的折价有一个缩窄，主要是来自于煤价比较高，电厂降价的空间不大，还是说是一个买方的需求比较旺盛，它的定价有个提高带来的？那这样的话，如果明年煤价有个下降，然后煤电联营之后标杆电价会上升的话，这一块折价是不是有一个扩大的可能？那第二块的话，就是这个市场售电业务以后的发展。那随着市场售电这个占比越来越大的话，我们会不会增加一些附属业务，包括配电在内的一个附加业务来提高我们这块的盈利能力？那这样的话，也就是关于我国这个售电侧电改的一个发展状况。谢谢管理层。 This is Mr. Liu from Huatai Securities. He got two questions. The first question is about the on-premise power sales. Right now, we compare the second quarter and third quarter, the discount is slightly decreasing. Is it because the price, the coal price, is too high or the demand is higher than our expected? If next year the pass-through mechanism is implemented, the coal price is going down a little bit. So will the discount rate get higher? The second question is that the portion of market power sales is going up significantly. So we have more business expense and business in power distribution. 关于交易电价这个降幅收窄，这个原因是多方面的。第一个可能就是煤价上涨对整体发电行业的成本的推动。这是第一个。第二个就是随着市场化的加深，发电企业对交易市场化的参与更加理性，报价更加理性。另外一个就是国家调整基础电价，对市场电价有一定的示范作用。另外一个就是部分地区夏季高温会对用电出现局部的紧张，可能对电价也有拉动作用。这是第一个。第二个关于电力体制改革，我们目前已经在积极参与国家开展的售电的交易。截止九月底，我们已经完成了售电公司完成的售电346亿。这是一个，就是对售电我们积极参与。另外一个就是我们还将积极应对国家开展的跨地区交易、现货交易、辅助服务等市场交易，进入增量配电业务，开拓和培育电力用户，创新经营模式，加快向综合能源提供商的转变，扩大市场份额，提高公司的经营效益，控制市场风险。谢谢。好，谢谢王理事。 For the first question, we have four reasons for the discount rate is slightly lower than our expected. The first one is the coal price is going up. The second is the marketization. It is different for marketization, so the bidding price is going to be reasonable. The third one is the benchmark tariff is adjusted by the government, so it will transfer to the discount rate. The last one is the hot temperature during the summertime. The second question is that we are proactively participating in the power retailing. We realized that 34.6 billion megawatt-hour this year. We are going to spend more business in spot market, in auxiliary services. We are trying to get more market shares in those areas and try our best to control the risk. 下面有请瑞士信贷 David 提问。 The question comes from David of Credit Suisse. 王理事你好，我这边就是想请教一下政策的问题，因为之前我们也知道国家一直在计划出台绿色证书交易，我想请教一下，王理事现在是不是认为火电行业还是会参与这方面交易，还是会从绿证的买方的话，这个主体有可能会慢慢地转到用户端或者电网端。然后还有就是说之前的话，我记得国家是计划2018年推出碳交易。那碳交易的话，以西方国家的例子来看的话，其实火电也是一个交易主体。那我就在想，就刚才提到这两个政策，其实都是需要火电在里面处理，但是火电现在运营情况又比较艰难，即使是1月份加了一些电价的话，那我们的盈利情况也不可能像几年前那么好。所以我就在想，想听听王理事怎么去看火电和这些政策的一些推行的可能性。谢谢。 This is Mr. Dai from Credit Suisse. He got two questions. Those two questions are about the regulation and policy. The first one is about the green certificate. Will the thermal power proactively participate in purchase? Will the certificate transfer from buyer to the grid or customer? The second question is that in 2018, next year, the government is promoting the carbon trading, so the thermal unit is still the dominant in participate carbon trading. But right now, we all see the operation difficulties in thermal unit. So the profit is not very good. My question is that whether we will participate in carbon trading. 2017年6月28号，国家可再生能源信息管理中心公布了绿色证书的认购交易实施细则，自7月1号正式开展自愿认购工作。2018年起可能会实时启动可再生能源电量的配额考核和绿色证书的强制约束交易。目前可再生能源发电配额相关的实施细则还尚未出台，考核的主体也尚未明确。如实施可再生能源发电配额制度，将提高公司清洁能源发电量的消纳能力，减少弃风、弃光，增加公司清洁能源发电量，进一步提高经济效益。目前，绿证强制交易的交易细则也尚未出台。绿证自愿交易制度的出台在保证合理交易价格情况下，可有效提高可再生能源的补贴资金回收的速度，减少银行贷款，降低资产负债率，改善新能源企业的经营状况。 For the green certificate. For the first question, the government has a conference about the green certificate purchase. The details, right now we still volunteer to purchase the certificate. The examination details right now have not published yet. The certificate, the main reason why we have certificate is that we are trying to lower the abandoned wind power curtailment and abandoned solar. We are trying to get more market share for renewable energy and trying to change the business operation for the renewable energy company. 关于碳交易的情况，我给大家把公司的情况说一说。从国家启动五市两省碳交易这个工作以来，实鉴公司已经进行了四个履约季。为了能够顺利开展试点地区的碳排放权的交易，降低履约成本，同时储备一些碳排放的指标，公司在专业公司的帮助支持之下，就开展了碳排查、碳排放交易权以及一些自愿减排项目的开发。到今年这个时间为止，在原来五市两省的基础之上，又增加了福建省这样一个加入的试点地区。从公司13家在这些地区的企业来讲，都能够按时按要求足额完成了配额的履约的工作。从17年履约季情况看，上海和湖北的市场履约，配额相对来讲是紧张一些，其他试点地区省份履约相对宽松。在确保完成地方政府碳排放配额履约任务的同时，各排放企业还积极开展了自愿减排以及碳交易，以及一些金融运作的一些工作，进一步降低了履约的成本。从17年这个履约季情况看，公司大概除了营业的支出和营业的收入，总体算下账来，履约的成本费用大概在1000多万不到2000万这种状态。从目前情况看，国家发改委也正在积极推动全国碳市场的建设，电力行业的配额的分配方案也已经对外在征求意见。从总的安排的时间表来看，17年底还是要启动全国的碳排放市场的交易。而现在存在一些政策的不明朗，一个是全国的市场和省级市场的这种关系。另外一个方面，对于主要的排放行业，包括电力、冶金，包括建材，那么哪个行业分配在哪个市场去履约，这个到现在政策没有确定下来。从现在情况看，政策还存在一些不明朗、不确定。 For carbon trading, right now we are go by four quarters. So we are trying to purchase the saving indicators and the carbon examination, trying to lower the agreement realization fee. Right now, we have five municipals and two provinces, and Fujian is the newly province for carbon trading. We are trying to realize all the agreements in time. A lot of enterprise, like financing firms, are helping us to realize the agreement. The realized fee for this year is around CNY 10 million to CNY 20 million. The National Development and Reform Commission is urging the enterprise to operate the carbon trading. By the end of 2017, the carbon trading will be implemented in time. But policy right now is not very clear because we don't know what industry is into which industry. Right now, the policy is not that clear. We will still focus and follow the carbon trading policy. Thank you so much for all of the questions and participation today. Finally, Mr. Huang would like to give us a brief summary. Thank you for participating in Huaneng Power International Investors and Analysts Conference Call. We appreciate your strong support and strong focus for the company. Right now is the curtain call. If you have more questions, you can contact the company's IR department. Thank you everyone. Have a good day.