Earnings Call: Q3 2019

Oct 22, 2019

Earnings release

Good afternoon, ladies and gentlemen. On behalf of Huaneng Power International Incorporated, I would like to welcome you all to the conference call regarding the third quarterly results announcement of 2019. [Foreign language] Now, may I introduce the management of the company today. [Foreign language] the President of the company, Mr. Zhao Keyu. [Foreign language] 大家下午好。公司副总经理赵平先生，the Vice President of the company, Mr. 赵平。赵总您好。大家好。公司副总经理李建民先生，the Vice President of the company, Mr. 李建民。李总您好。主持人好，大家好。公司总会计师黄立兴先生，the Chief Accountant of the company, Mr. 黄立兴。黄总您好。你好，大家好。公司董事会秘书黄朝泉先生，the Board Secretary to the company, Mr. 黄朝泉。黄总您好。你好，大家好。 [Foreign language] people in charge of the related departments are also joining us in this meeting. [Foreign language] First of all, the Chief Accountant of the company, Mr. Huang Lixing will review the business performance for the third quarterly results of 2019, followed by Q&A session. May we have the honor to invite Mr. Huang to review the business performance and Mr. Zhou Biao will conduct English interpretation. 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。昨天公司公布了三季度经营情况，按照中国会计准则计算，前三季度公司实现合并营业收入CNY 1,272.32亿元，同比上升0.99%；归属于本公司股东的净利润CNY 53.89亿元，同比上升170.95%；每股盈利为CNY 0.32元。公司净利润上升的原因主要是燃料价格同比下降。 Ladies and gentlemen, welcome to attend the conference call for the third quarter results of the company. The company released its third quarter results yesterday. In the first three quarters of the year, according to PRC accounting principles, the company realized consolidated operating revenue of CNY 127.232 billion, increasing by 0.99% year-on-year. Net profit attributable to the equity holders of the company was CNY 5.389 billion, increasing by 170.95% year-on-year. The EPS was CNY 0.32. The main reason for the increase of the net profit is the decrease of the fuel cost year-on-year. 四季度公司将继续强化安全生产，抓好节能减排，推进低碳清洁能源发展，主动应对电改，积极提升市场份额，继续控制燃料成本，优化债务结构，持续为公司股东创造长期稳定增长的回报。下面的时间我和我的同事愿意回答各位的提问，谢谢大家。 In the fourth quarter, the company will continue to strengthen production safety, focus on energy conservation and emission reduction, promote the development in low carbon clean energy, initiatively adapt to the power industry reform, proactively increase market share, strive to reduce fuel cost, optimize debt structure, consistently provide long term sustainable and increasing returns for the shareholders of the company. Well, next, my colleagues and I are glad to answer your questions. Thanks. 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. 欢迎各位提问，也请各位在提问前告诉我们您所属的机构及姓名。有请第一条问题。Please state your name and your organization before question raised. May I invite the first question, please. 大家好，如需提问，请在话机上按星1排队等候。谢谢。Thank you everyone. If you would like to ask any questions, please press star 1 on your telephone keypad. 第一位有请花旗银行的刘显达提问。你好，有请。你好，管理层，我是花旗银行的刘显达。下午好。我有三个问题想跟公司请教的，第一个问题就是对于国家打算在明年年初取消火电的标杆电价的话，那公司预计明年2020年我们的上网电价大概比今年改变会是怎么样？第二个问题想请教的是今年三季度公司市场卖电的电价，还有比我们原来那个结构大概是怎么样？第三个问题是有关我们最近兄弟公司华能新能源在香港上市的，那我想知道这样的话，对我们公司华能国际未来发展风电会有什么改变？会做得更多，还是有什么一些改变？有没有一些其他的协同效应等等？谢谢。 I am from Citi. I have three questions. First is recently the government released the policy to cancel the standard tariff policy in 2020. Could you please talk about the change and also the analysis about the impact on the company's average on-grid tariff in next year? The second question is could you please provide us the tariff discount comparing to the standard tariff in the third quarter for your market-based power sold? The third question is about the current company just want to delist the Huaneng Renewables in Hong Kong Stock Exchange. Could you please talk about the impact and also the company's future development strategy in the wind? Also is there any change in terms of the wind business for your company? 首先回答一下第一个问题。大家都关注到国务院常务会议出台了一个决定，取消煤电联动机制，将现行的标杆上网电价机制改为基准价加上下浮动的一个市场化机制。 First, for the first question, we all noticed that the state government has released the notice that cancel the standard tariff policy instead of releasing the new policy for the tariff mechanism based on the standard tariff plus the fluctuations. 首先说吧，这个取消煤电联动机制，因为原有的煤电联动机制，原来因为种种原因，存在执行不及时和不到位的问题。现在我们将执行一个市场化的电价机制。短期内虽然给公司的电价会带来一定的压力，但是从长远上看，对行业上来说，机制将更加地合理。 As we know, for the past years, for the current passing through mechanism, for the tariff has not been implemented strictly for the new policy to cancel this passing through mechanism. We think in temporary period, we think this will bring us some pressure on our on-grid tariff level. But in long term, we believe this will give the relatively reasonable market mechanism for the power industry. 从长期来看，电价将更多地由供需形势和公司成本的变化来决定。同时，这个政策是设置了一个限价的空间，也保证了我们经营不会出现大幅的波动。 We also believe in the longer term, this will be really up to the balance between the supply and demand of the power and also the operational cost for the power producers. The government has also set some cap for the fluctuations of the tariff in order to maintain or prevent the large fluctuations for the performance of the power producers. 对于明年的电价水平的预测，首先说公司的平均结算电价主要是受到两个因素的影响，一个是我们交易电量的比重，第二个是交易电价的水平。 For tariff of next year for us, actually, it's up to two factors. First is the percentage of the market-based power sold. The second one is the tariff level for this part. 从市场电的比重来看，随着全面放开经营性用户的发用电计划，预计市场电的比重会略有上升。 According to the government policy this year to open all the end users for the general commercial users next year, we believe that the percentage for the market-based power sold will be increasing. 从交易电价的水平上，我们认为交易电价总体将保持一个稳中有升的态势，主要有三个原因。 In terms of the tariff of the market-based power sold, we believe it will be increasing due to following three factors. 第一个因素是，因为随着交易比例的扩大，发电企业的报价策略也在做调整。当少量的交易电的时候，我们主要考虑的是回收变动成本即可。当这个交易比例达到一定的程度之后，我们还要回收固定成本，因此交易的电价可能会提高。 First is because of the percentage will be increasing, there will be some change and adjustment on our pricing mechanism for this part. For the previous years, we just making the price of this part based on the variable cost. But if the percentage of this part will be increasing in a large magnitude, maybe the pricing will be based on the fixed cost. 第二个因素，新开放进入市场的这些工商业的用户多为中小用户，他们的用电量较小，然后电能的成本在它总成本中的比重较低，因此这些用户对电价的敏感性是相对差的，对降价的诉求相对低。 Second is maybe the new entrants for the end users will be the medium and small sized end users, and they are not so sensitive to the tariff from the power. So maybe they don't have strong appeal to decrease their power tariffs. 第三个因素是随着市场长时间的连续运行，市场主体的竞争也更加的理性和有序。 The third will be that after so many years of operation and experience in this industry, the power producers may become much more reasonable and much more orderly in the competition of the pricing. 因此我们的平均结算电价虽然是有压力，但总体是风险可控的。 In general, maybe temporarily there will be some pressure under this new policy, but we believe this is limited for the impact of our business performance. 现在回答第二个问题。2019年第三季度公司结算的市场交易电总共是590.25亿千瓦时，交易电价的折扣是每度电平均降价大约3分钱。 For the third quarters, for the market-based power sold, the amount was 59.025 billion kilowatt hours with a tariff discount about CNY 0.03. 华能新能源已经向市场披露了这个相关退市的情况，那么新能源的退市不会对华能国际独立发展新能源造成任何影响，公司仍然坚持致力于大力发展新能源，提高新能源的占比。 Huaneng Renewables has released the delisted announcement. We said there will be no impact on our own independent development in the future, especially in the renewables sector. We are going to increase the percentage of the renewables in our power capacity structure. 可以了，谢谢管理层。感谢您的提问，也感谢管理层解答。大家好，下面一位提问者是来自瑞士信贷的戴维。您好，有请。管理层你好，我是戴维。也是三个问题。第一个问题还是回到新的电价机制上，我们现在时间点是，因为我理解这个应该是电价制定权下放到各个省，就是地方吧。那我想知道的是，我们公司判断的话，大概什么时候会有一点眉目？电价到底要下降多少？是比如说是年底呢，还是要等到明年年初？然后第二个是想知道一下三季度的平均的单位燃料成本，还有如果可以的话，能不能给一下七月、八月、九月三个单月的单燃成本，想看一下有没有一个进一步的下降趋势。然后第三就是刚才你也提到在新的环境下，电价可能在短期有点压力，那我在想如果电价有压力的话，那我们会不会觉得明年的煤价更有可能继续下降？因为现在电力需求也是在放缓，然后煤炭那边的供给，产能也在慢慢的释放出来。基本就是这三个问题。谢谢。 I have three questions. The first is about the new policy of the tariff. We noticed that the government is making the decision that the local government can make decision about the tariff adjustment. Could you please talk about the timetable of this new policy? Is it will be implemented at the end of this year, or it will be implemented next year? My second question is about the unit fuel cost. Could you please provide us the average unit fuel cost for the first three quarters and also separately the three months for the third quarter for the unit fuel cost? My third question is you mentioned that you have maybe temporarily pressure under the new policy in terms of the tariff. Do you think that maybe under this new policy, the coal price next year will be decreasing continuously? Based on the current very weak power demand and also the increasing of the coal capacity. 首先说新的电价政策，目前正式文件还尚未出台，因此各地方也没有进一步的实施细则。公司也在密切关注各地的政策进展，各地区也会结合当地的实际情况，结合火电企业的经营状况来出台相应的政策。 Currently, we have not received any formal notifications from the government in terms of the tariff policy. We are going to keep close eyes on this progress. Maybe after the release of these notifications, the local government will make the detailed implementation procedures and rules for the tariff policy. 刚刚那位先生问到的第二个问题，就是判断单燃运行的趋势。我们这没有按月的，我可以给你报一下一、二、三季度的情况。一般从我们的经验角度来看，能更好地判断单燃运行的趋势。今年的一季度总体燃料成本是CNY 219.72元/MWh，二季度是CNY 228.56元/MWh，三季度是CNY 231.29元/MWh。有点微小的逐渐上升的趋势。 Currently, we don't have the month figures at hand right now. We're going to give the quarterly figures. For the first quarter, the unit fuel cost for us was CNY 219.72 per MWh. For the second quarter, it was CNY 228.56 per MWh. For the third quarter, it was CNY 231.29 per MWh. We can see the unit fuel cost has increased quarterly. 从内部的结构来看，因为燃料有燃煤的、燃气的，这两个还稍微有所不同。燃煤的一季度是CNY 211.09元/MWh，二季度是CNY 220.22元/MWh，三季度是CNY 219.83元/MWh。燃煤来说，三季度的燃料比二季度是有所降低。从燃气来看是逐级升高的，一季度是CNY 374.14元/MWh，二季度CNY 397.65元/MWh，三季度是CNY 400.65元/MWh，所以有一个逐级缓慢增加的态势。 Specifically for the coal and gas. For the unit fuel cost of the coal business, in the first quarter, it was CNY 211.09 per MWh, and CNY 220.22 for second quarter, CNY 219.83 for third quarter. We can see that the third quarter's cost has been decreasing compared to the second quarter. For the gas business, the unit fuel cost for the first quarter, it was CNY 374.14 per MWh, and CNY 397.65 per MWh for second quarter, and CNY 465 per MWh for the third quarter, which is a little bit higher than that of the second quarter. 我来回答一下第三个问题。在回答这个问题之前，我想把到厂的含税燃煤价格，三个季度的说一下。一季度到厂的燃煤价是CNY 515.05元/吨，二季度是CNY 499.26元/吨，三季度是CNY 503.32元/吨。这是到厂的含税燃煤价。 For the first three quarters, first I give the figures for the raw coal price including tax. For the first quarter, the coal price was CNY 515.05 per ton. Second quarter, it was CNY 499.26. The third quarter, it was CNY 503.32 per ton. 从对明年煤炭市场的一个大概的预判，我们认为随着先进产能继续释放、铁路运输能力提升，在这个大背景下，供给端是具备增长的潜力的。 For the outlook of the coal, actually we say along with the increasing of the capacity of the coal and also the capacity increasing for the transportation, we say there is a potential increasing room for the supply side. 在需求侧，随着新能源及清洁能源这种占比的提升，我们认为动力煤的需求是以稳为主。这样的话，总体上明年煤炭的供需形势是保持一个偏宽松的状态。 Also for the demand side, we say along with the increasing percentage of the renewable sectors, and also we believe that the power demand will be maintained a stable level. So in general, we see the balance between the supply side and the demand side will be easing comparing to that of this year. 这种宽松的状态也为我们控制煤价带来了好的外部环境。刚才我们同事也说到了，电力市场化改革，这样的话也对燃料成本的控制提出了更高的要求，这也是控制燃料成本，也是明年燃料工作的一个重点。 Based on above mentioned factors, we say maybe next year the outer side factors will be good for us to control the coal cost. Also there is a requirement for us to strictly control the coal cost because of the new tariff policy which will be implemented next year. 所以在明年订货的过程中，我们有一个努力的方向，一个就是在订货谈判中，我们努力争取长协合同的基准价格有所下调。 For next year's coal contract negotiations, first, we are going to maybe ask the coal suppliers to decrease the benchmark price for the coal next year. 第二方面是进一步优化资源结构、运输结构，加大经济煤种燃烧的力度，降低采购成本。 The second is to optimize the coal purchasing structure and also to optimize the coal types to increase the general purchasing strategy. 第三方面是继续做优进口煤采购，发挥进口煤的价格优势。 Third is we're going to continue to optimize the import coal strategy to increase the coal percentage. 不好意思，我想再追问一个小问题，就是如果刚才讲的，假如说12月底之前各个地方出不来大概电价调整的一个方向，然后我们其实11、12月份也要开始去为明年长协煤去谈判。那我想在电价没有出来之前的话，我们在煤价那边是怎么想的？是先把它尽量压下去再说吗？还是已经有一个很具体的想法？ The following question is that if the new tariff policy will not be released by the end of this year, because at that time the coal power producers and the coal suppliers will have the negotiations for the contract next year. So what is your strategy to control the coal price in a lower level? Or we'll maybe make renegotiations after the new tariff policy will be released. 控制价格是我们在过去、现在和将来一直要坚持做的一个工作，这也是对我们经营工作非常重要的一个方面。刚才我说的那几点思路，也是我们明年努力的一个方向。 The coal price control will be continuously implemented for our strategy in terms of the contract negotiations, no matter for the past years or the following year, coming years. Also, we are going to combine the factors of the new change of this industry. 好，谢谢。谢谢各位领导。感谢您的提问。大家好，下面有请里昂证券的刘家洋提问。好，有请。你好，领导听到吗？喂？可以，请讲。你好，我是中信里昂的刘家洋，多谢你。我有两个问题，因为我看到1到9月我们花的基本开支大概在170个亿左右，然后全年本来我们指引是350个亿，那是不是等于说我们在四季都会有一个很大的资本开支要出来，因为我们装很多的新的投产的风电。那第一个问题，请教一下我们1到9月，我们现在到目前为止我们装了多少的风电？谢谢你。 I have two questions. First is, we noticed that for the first nine months, your total CapEx was CNY 17 billion. Also you have given the guideline for the whole year, which was CNY 35 billion. Does that mean that the CapEx for the fourth quarter will be very huge? Because you are going to put lots of wind capacity into operation in the fourth quarter. The second question is, could you please provide us with the figure for the newly added wind capacity for the first nine months? 你好，我先来回答第一个问题。1到9月份目前的资本性支出是170个亿，确实全年可能到第三、第四季度这个支出会比较大，这也是根据以往惯例，每年的大笔的资本支出确实是发生在下半年，甚至是在最后一个季度。 For the first CapEx question. For the first nine months, the actual CapEx was CNY 17 billion. For the fourth quarter, generally, we have a relatively larger CapEx in the fourth quarter. 我现在来回答第二个问题，就是1到9月份我们的装机增加的大概大约是129兆瓦，装机容量增加。 Capacity of wind for the first nine months. It is around nearly 200 megawatts. 好的，下面没有其他问题，谢谢管理层。感谢您的提问。大家好，下面有请光大证券的于红光提问。你好，有请。管理层你好，我是光大证券的公用事业分析员于红光。我这边主要是关于市场电的几个问题，一个是刚才公司披露的第三季度的市场电折价幅度，想可否披露一下前两季度的市场电的折价幅度，想看一下这个变动的趋势。然后还有一个问题就是，因为看到公告里面说公司前三季度的市场电比例是现在到了51%左右，这个市场电比例逐季度提升的原因是因为公司发电策略，比如说是先发计划电、后发市场电，还是因为在三季度新签订了一些市场化的订单合同？另外管理层可否展望一下，2020年的市场电占比的空间大概能到什么样的水平？谢谢。 I have two questions. First is about the market-based power sold. You have given the tariff discount for the third quarter. Could you please talk about the tariff discount for the first quarter and the second quarter in order to compare the trend of the tariff discount? The second question is, you have mentioned for the first nine months, the market-based power sold percentage was 51%. Could you please talk about the reason for the increasing of this percentage? Is it the change of your strategy, or you have signed some new contracts for this year? Also could you talk about the outlook for the percentage of next year? 公司上半年市场电的折价幅度是平均降价0.31分，三季度是降价0.3分，也就是说我们的降幅在收窄。 For the first half, the tariff discount was CNY 0.31 cents, and for the third quarter it was CNY 0.3 cents. It is a little bit lower than that of in the first half. 刚才您也提到了，近期的市场电的比重在上升，这个主要是跟结算的进度有关的。我们的全年大部分交易都是年度的合同，可能是在一季度就完成了，但是一季度的这个交易比重，实际上因为是在合同签订的阶段，所以一季度相对比较低，后面会逐渐地把进度追赶到全年的合同签订的比例上。 For the relatively higher percentage of the market-based power sold, actually, we signed the contract for this part at the first quarter. You may say the relatively lower percentage in the first quarter, but we will balance all the annual targets in the following quarters so that we see the continuously increasing percentage for the second and third quarters. 关于明年的市场电的比重，按照国家全面放开经营性用户发用电计划的政策，预计明年的交易比重会有所上升。 For next year, according to the government opening policy of the general commercial and industrial end users, we expect that next year the percentage for the market-based power sold will be increasing. 但是用户的放开不是一刀切、一步到位的，各地也会结合实际情况，有序地进行放开。 This kind of open to all the end users will be gradually implemented in terms of the different local governments. 同时，这个放开也只是给予了用户选择权。对于中小用户来说，他的用电成本比重低，电价不敏感，可能会有部分的用户选择不进入市场。 This government policy just gives the end user some options. For some medium and small size end users, which are not so sensitive to the tariff cost, maybe some of them will not select these new options. 此外，燃煤机组的电量计划也不会一步全部放开到位，还要保留部分保障供热、保障电网安全的电量计划。 The government will maintain some portion of the planned power generation to secure and to maintain the stable supply of the heat, the coal generation unit, and also maybe some network stable operational concernings. 总的来说，预计公司的交易比重会略有上升，但是不会一步上升到极端的情况。 In general, the percentage will be increasing, but the magnitude will be not huge. 感谢管理层解答。大家好，如需提问，请在话机上按星1排队等候，先星号键，再数字1。Thank you everyone. If you would like to ask any question, please press star 1 on your telephone keypad. Press star followed by 1. 下面有请长城证券的濮阳提问。你好，有请。公司管理层好，我这边主要请教两个问题，第一个就是我在2018年年报当中看到披露了巴基斯坦项目，18年是确认了CNY 11.3亿元的投资收益。我想请教一下，这一块是不是主要由于是合营公司转成子公司带来的投资收益？第二个问题我想请教一下，从目前这个时间点来看，明年的长协煤的谈判的进度，然后公司预计明年的长协煤价格可能较今年处于一个什么样一个变动的趋势？就这两个问题，谢谢。 From Great Wall Securities, I have two questions. The first is according to your annual report of 2018, there was about CNY 1.131 billion investment gains from the Pakistan business. Could you please talk about the nature of these investment gains? Is it the investment gain from the joint ventures and associates items? The second question is, could you please talk about the contracts negotiation for next year, timetable for that? Also, could you please talk about the outlook of the price range for the contract? 关于第一个问题，你提到18年巴基斯坦的投资收益的理解是对的，因为今年从19年1月1号，我们巴基斯坦因为控制权增强了，变成一个子公司，所以说今年的这个投资收益是不含它去年有一个投资收益的这个历史。 Yeah, you are right for your understanding for the investment gains from Pakistan because last year it is our associates for Pakistan business and this year we consolidated Pakistan business. So for this year's investment gains it is not including the return from Pakistan. 关于明年长协的谈判进度的问题，现在就是在进行跟煤炭企业进行一个初步的对接，还没有进行实质的谈判。 For the timetable of the negotiation next year, currently we just make the initial contact with the coal suppliers, has not enter into the substantial negotiations. 好的，我再追问一下，我想请教一下，因为巴基斯坦项目是去年年底从合营公司这块转化成子公司来确认，我想问一下，会计上的重分类会产生投资收益吗？ The following question about the Pakistan is the accounting entries. Could you please talk about the change in the accounting items from the end of last year and the beginning of this year? 重分类，没有。 There's no reentries for the Pakistan's accounting items. 好的，没有其他问题了，谢谢。感谢你的提问，也感谢管理层的解答。大家好，下面有请中金公司的刘佳妮提问。你好，有请。管理层你们好，我是中金公司研究员刘佳妮，我有三个问题。第一个问题是关于我们风电板块的，最近我们也看到风机的价格其实一直是在回升，也出现了一些行业内违约的现象，我想问一下，这样的情况接下来会不会对我们的新增装机的总量目标会有所影响？会不会实质上面最后可能达不到我们原先计划的？这是第一个问题。那第二个问题是对于资产减值的展望，因为过去几年我们每年都有十多个亿的资产减值，不知道今年会不会还有这么大的一个量，或说现在目前来看，是不是已经有一些资产我们看到可能有这么一个可能性。第三个问题是关于进口煤的问题，想问一下现在是不是还在持续着非常严格的监管，以及我们四季度大概还有多少额度是可以让我们去使用的？和去年同期来比的话，是一个什么样的一个情况？谢谢。 From CICC. I have three questions. First is about the wind construction progress. Could you please talk about based on the accounts, maybe there are some defaults on the delivery of the wind units. Could you please talk about whether this will impact the progress of the newly added wind capacity? Do you believe you can reach your target goal of the capacity addition? The second question is about impairment. Generally, the fourth quarter you will make roughly about CNY 1 billion impairment. Could you please talk about the outlook of this year? Is there any signs of the impairment of your assets? The third question is about the import coal. Is there any tight supervision and control on the import coal from the government? Also do talk about the fourth quarter quota for the import amount of your company and also the amount year-on-year change. 我先来回答第一个问题。虽然目前市场上风机的价格确实有上涨，但是从公司的角度来说，我们会和厂商紧密做好协调，做好一些设备的催交，以确保他们的供货进度。同时，我们也会加强我们自己工程的建设进度的协调。从目前来看，对公司年度的投产目标没有什么影响。谢谢。 The first, though there are some equipment price increase for the wind, we enhance the communications with the wind suppliers to ensure the progress of the delivery of this equipment. Currently, we say there is no impact on our target of the capacity addition. 关于你问的减值的问题，是这样，按照会计准则规定，每年我们确实是会对有减值迹象的，还有对减值迹象的资产，还有商誉进行减值测试。从目前1到9月份的情况来看，我们159家电厂，大概有23家是亏损的，占比18.87%。虽然跟去年比，亏损面是降低了，有比较大幅度地降低，但是仍有一些是亏损电厂，因此年底我们会根据这些减值迹象的情况进行测试，估计预计会有一定幅度的减值。 According to the accounting principles, we will do the impairment test on our assets and the goodwill. Currently, we say for the first nine months, we have 23 power plants making loss among our total power plants of 159, which is about 18% making loss. This percentage of loss-making power plants has been decreasing compared to the previous years. But we still will do the impairment test for these loss-making power plants to say whether there will be some impairments. But in general, we say there will be some impairment, but we are not sure about the amount. 我来回答一下这位女士的第三个问题。公司前三季度采购进口煤是3455万吨，同比是减少了228万吨，降幅是6.2%。 For the import coal, for first nine months, we have imported 34.55 million tons, decreasing by 2.28 million tons, which is around 6.2% year-on-year decrease. 从前三季度进口情况看，进口煤的政策是维持一个相对稳定的。 The government's policy in terms of the imported coal was stable. 因为四季度是涉及迎峰度冬保供的一个重要时间段，所以我们预计进口煤政策会继续保持一个相对稳定，但是监管措施会相应的有些强化。 Entering the fourth quarter, which is traditionally the peak in winter, the government will maybe maintain the stable policy, and maybe sometimes enhancing its supervisions on the operation of the imported coal. 但是，公司通过近年来不断地调整结构、控制风险，应该说进口煤的政策调整的影响越来越小。 Based on the company's long effort on the structure optimization and the control of the risk of the coal, currently we say the impact coming from the policy has very little impact on our business. 公司已经调整了沿海电厂的供煤结构，加大了优质内贸煤资源开发力度，增加长协量，通过这些手段来增加供应。同时，也利用华能曹妃甸港提前储煤，降低进口煤的风险。 The company has optimized the structure of purchasing coal and also enhanced and expanded the domestic coal purchasing channels and enhancing the implementation of the contract coal. Currently, we say we can secure the coal supply and control the risks of the coal import. 另外，公司将继续做优进口煤采购，主动抓市场机会，发挥进口煤的价格优势和补充供应作用。 Of course, we are going to continue to optimize the imported coal strategy to purchase some relatively lower price imported coal to reduce the cost. 好的，谢谢领导的分享。我没有其他问题了。感谢您的提问。大家好，如需提问，请在话机上按星一，再等候。先星号键，再按数字1。下面有请华创证券的黄世杰提问。你好，有请。你好，各位领导，我有几个小问题想问一下。一个就是我们大士能源去年和今年的分季度盈利和成本的情况。还有一个就是我们供热去年和今年分季度的收入和成本情况。第三个就是借着上面领导的提问，就是我们进口煤的比例现在基本上能做到多少，它的到港价格能比我们内地的低多少？然后还有一个就是我们长协煤的价格，长协煤之前我们说基本价可能会降到520，是不是今年，因为一般都在10月份会签，是不是会到这个水平？然后还有一个就是风机的建设进度问题，因为我们刚才听领导说风机现在投产了126兆瓦，但实际上我们今年对于风机投产的当时预期还是挺多的。第四季度风机投产规模大约是多少？主要是这些问题，谢谢领导。 I have four questions. First, could you please talk about or give us the revenue and cost for the Tuas Power business for the first three quarters of this year and that of last year? The second question is also could you please provide us the revenue and the cost for the heat supply business quarter-on-quarter of this year? The third question is about the percentage of the coal imported for the first three quarters and also the price gap between the imported coal and the domestic coal. Also, could you please talk about the negotiations for next year's coal purchase? Because maybe you have said that the contract of coal price will be maybe decreasing to about CNY 520 per ton. Does that mean that the contract coal for next year will be basing on this price guideline? The fourth question is about the wind turbines capacity addition. You have mentioned that for 9 months you only added more than 100 MW and this has a huge gap for the whole year's target. Please talk about whether you can reach your goal or is there any new guidelines for the newly added capacity for the wind? 黄世杰，我先跟你说一下大士的分季度的收入、成本和利润情况。2019年的一季度，大士公司收入是CNY 31.68亿，二季度是CNY 30.35亿，三季度是CNY 35.17亿，合计是CNY 97.2亿。 For the Tuas Power's revenue, for first quarter of this year, it was CNY 3.068 billion, second quarter it was CNY 3.035 billion. For third quarter, it was CNY 3.517 billion. For first 9 months, it was CNY 9.72 billion. 这个营业成本，一季度是CNY 31.24亿，二季度CNY 30.49亿，三季度CNY 34.85亿。一到三季度的一到九月份合计是CNY 96.59亿。 For the cost for Tuas Power, for the first quarter it was CNY 3.124 billion. Second quarter it was CNY 3.049 billion. For third quarter, it was CNY 3.485 billion. For first nine months, it was CNY 9.657 billion. 从盈利情况来看，一季度是负的CNY 3,700万，二季度是负的CNY 2.02亿，三季度是负的CNY 1.32亿，合计是负的CNY 3.71亿。 The net profit of Tuas Power for the first quarter, it was net loss about CNY 37 million. The second quarter it was net loss about CNY 202 million. The third quarter net loss was CNY 132 million. For the first nine months, the net loss was CNY 371 million. 供热的分季度情况，我跟你说一下，这个是国内的，主要都是在国内的供热市场。一季度热力收入是CNY 50.4亿元，二季度是CNY 8.19亿元，三季度是CNY 7.52亿元，一到九月份合计是CNY 66.12亿元。 The revenue from the heat supply business, the first quarter of this year it was CNY 5.04 billion, second quarter was CNY 819 million, and the third quarter it was CNY 752 million. For the first nine months, it was CNY 6.612 billion. 供热的燃料费，因为它是一般的热电，我们是个联产的一种成本。燃料费里头是一季度CNY 38.78亿元，二季度是CNY 8.29亿元，三季度是CNY 3.35亿元，合计是CNY 50.42亿元。 Now for the fuel cost of the heat and supply business for the first quarter of this year, it was CNY 3.878 billion. For the second quarter, it was CNY 829 million. For third quarter, it was CNY 335 million. For the first nine months, it was CNY 5.042 billion. 这个供热的边际贡献总额，一季度是CNY 11.62亿元，二季度是负的CNY 0.1亿元，三季度是盈利CNY 4.17亿元。一到九月份的边际贡献总额是CNY 15.69亿元。 The marginal contribution from the heat and supply business of HPI. For the first quarter, it was CNY 1.101 billion. The second quarter, its net loss was CNY 110 million, and the third quarter it was CNY 417 million. For the first nine months, it was CNY 1.569 billion. 回答一下这位先生的第三个问题。公司前三个季度采购进口煤的占比是25.49%，同比增加了0.63%。 For the import coal percentage for the first three quarters of this year, it was 25.49%, which is higher about 0.63% year-on-year. 从采购进口煤的价格优势看，与当期内蒙煤相比，它的价格优势是CNY 79.1。其中一季度的优势是CNY 79.7，二季度是CNY 86.2，三季度是CNY 71.9。整个今年前三个季度的价格优势都非常明显。 For the coal price of imported coal, it has relatively lower performance. For the first quarter, the gap between the imported coal and the domestic coal was CNY 179.7 per ton. The second quarter it was CNY 86.2 per ton. The third quarter it was CNY 71.9 per ton. For the first nine months average, it was CNY 79.1 per ton. 年度长协合同这块，因为正在进行一个初步的对接，还没有进入实质性谈判阶段。另外，从今年开始，这个合同是从一月份，相当于整年一月到年底这样一个合同的周期。但是不管合同签订的周期原来比如说是从11月到今年的11月，我们努力争取长协机动价格下调，这是一个方向。 The contract negotiation for next year. Currently, just at the very beginning period with the initial communications with the coal suppliers, but no matter of the cycles of the coal contract negotiation, we are going to try our effort to reduce the coal contract benchmark for next year. 我回答第四个问题。首先我先更正一下，一到九月份公司风机可供装机容量增量应该是159兆瓦。 First, I want to make corrections about the newly added capacity of the wind for the first 9 months. The actual addition of wind was 159 megawatts. 根据公司2019年投产计划，我们大部分的项目都是在年底投产，包括很多的海上风电，还有大型的一些风电项目。 I want to add that according to our plan of the capacity addition for this year, lots of our projects will be put into operation in the fourth quarter, including some large capacity projects and some offshore wind projects. 请问这位参会者还有其他的问题吗？林老，我能不能问一下大士能源去年分季度的收入和成本情况？就做一个对比。 A following question about Tuas Power's performance. Could you please provide us the revenue and the cost for Tuas Power in the third quarter of last year? 去年的大士一季度的收入是25.96亿元，二季度是28.07亿元，三季度30.15亿元，合计是84.19亿元。 For the first quarter of last year, Tuas Power's revenue was CNY 2.576 billion. For the second quarter, it was CNY 2.811 billion. For third quarter, it was CNY 3.015 billion. For first 9 months of last year, it was CNY 8.419 billion. 营业成本是一季度25.47亿元，二季度27.31亿元，三季度是30.25亿元，合计去年的一到九月份是83.03亿元。 For the cost of last year's first quarter, it was CNY 2.547 billion. Second quarter, it was CNY 2.731 billion. Third quarter, it was CNY 3.025 billion. For first nine months of last year, it was CNY 8.303 billion. 从经营结果来看，今年的一季度是负的1.15，二季度是负的0.8，三季度是负的3.23，合计是负的5.18。 For the net profit of last year, first quarter, the net loss was CNY 115 million. The second quarter's net loss was CNY 80 million, and the third quarter net loss was CNY 323 million. For first nine months net loss, it was CNY 580 million. 好的，谢谢林总。非常感谢各位的积极提问。目前会议当中没有提问者，请需要提问的参会者在话机上按星1排队等候。请按星号键，再按数字1，谢谢。As a reminder, if you would like to ask any questions, please press star 1 on your telephone keypad. Press star followed by 1. Thank you. 管理层好，大家好，下面有请摩根士丹利的严艺书提问。你好，有请。你好，管理层，我是摩根士丹利的严艺书。有三个问题想请教一下。第一个问题是，从目前的煤价走势来看，公司预计19年单位燃料成本大概下降多少？是否还会维持年初的时候的指引不变？然后第二个问题是，现在这个新电价机制，浮动电价的调整频率大概是多少？管理层预计，比如说是一年一调还是一个季度一调？然后第三个问题是，因为前九个月投资收益增长是比较多的，可能主要是深圳能源，然后四川水电这一块的增长比较多。然后管理层能否介绍一下这个盈利情况是否能持续？谢谢。 From Morgan Stanley, I have three questions. First is about the coal price. Could you please talk about the guidelines for the whole year's energy cost? Whether you will change the original coal cost guidelines? The second question is about the new tariff policy. Could you please talk about the outlook of the adjustment frequency? Is it the annual-based adjustment or maybe a quarterly adjustment? The third question is about the investment gains. We see that the increasing of the investment gain mainly coming from the return from the Sichuan Hydropower and also the Shenzhen Energy. Could you please talk about this kind of increasing trend can be maintained in the future? 我来回答第一个问题。公司前三季度采购原煤价实际完成是506.2元每吨，同比是下降了48.79元每吨，降幅是8.79%。 For the first three quarters of this year, the company has realized the natural coal purchasing price CNY 506.2 per ton, decreasing by CNY 48.79 per ton compared to the same period of last year, which is accounting for about 8.79% year-on-year decrease. 到厂的含税标煤采购单价完成是759.4元每吨，同比是下降68.96元每吨，降幅是8.32%。 For the standard coal price for the first 9 months, it was CNY 759.4 per ton, decreasing by CNY 68.96 per ton compared to the same period of last year, which is accounting for 8.72% year-on-year decrease. 我们预计四季度的煤价不会高于前三季度的平均值，这样的话全年的指引是不变。 We expect that the coal price for fourth quarter will be not higher than that for the first 9 months. So we will not change our guideline for the coal price change for this year. 回答第二个问题，从公司目前得到的政策信息上，没有明确这个调价的周期。 According to the current information we have, there is no confirmed cycles for the adjustment of the tariff. 对于新进入市场的用户来说，这个浮动机制实际上是给了一个价格的区间，价格可以在这个区间内浮动。 Actually, for the new entrants for this market, they just have some price change range for the pricing making for the tariff in this market-based power market. 关于你问的投资收益，今年确实像你看到的，今年的1到9月份是CNY 11.63亿，去年同期是CNY 1.69亿，增长了CNY 10亿。其中主要是深圳能源、四川水电、南通发电和海南核电。所以从这个结构来看，我们的投资收益都是一些战略性的、相关的火电、风电、核电投资。所以投资收益的高低主要取决于相关电力产业的大环境的影响。 Sure, for the investment gains for the first nine months of our company was CNY 1.163 billion, comparing to the CNY 169 million for last year. Actually, these investment gains mainly coming from the returns from Shenzhen Energy, Sichuan Hydropower, Nantong Coal-Fired Power Plant, and also the Hainan Nuclear Power Plant. We can see that all of these investments are in the fields of coal-fired, wind, and nuclear industries. So the performance of these investments will be really up to the impact coming from all the industry's performance. 请问这位参会者还有其他的问题吗？谢谢管理层，没有了。谢谢。好的，感谢各位的积极提问。今天的问答环节到此结束。请问管理层是否对今天会议有要做补充的地方？没有。好的，谢谢管理层。那下面的时间交回给主持人，有请主持人。 [Foreign language] Thank you so much for all of the questions and participation today. [Foreign language] Finally, Mr. Huang would like to give us a summary. 感谢各位参加公司的电话会，也感谢各位一直以来给予公司的大力支持和持续关注。那么今天的会议到此结束，如果有进一步的问题，欢迎大家会后与公司投资者关系人员联系。谢谢大家。 Thanks for attending Huaneng's conference call today. Thanks for your long term support and lasting attention to the company. Today's conference call is going to the end. Please contact our IR staff after the conference if you have any further questions. Thank you. [Foreign language] Thanks again for your attendance of the conference call regarding the third quarterly results announcement of 2019. We are looking forward to meeting with all of you in our next results announcement. Thank you.