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How does the Company arrive at its contemplated return on investment in relation to power plants under proposed acquisitions or power plants under construction?
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Question content:
How does the Company arrive at its contemplated return on investment in relation to power plants under proposed acquisitions or power plants under construction?
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Answer:
The purpose of an acquisition by the Company is to further enhance the advantage of economies of scale, thereby increasing market share and enhancing competitive strengths. Based on these criteria, the Company will choose and assess projects based on whether the acquired projects are commercially feasible and on their abilities to enhance shareholder value:
? in the short run, the acquired projects should bring an increase in earnings per share for shareholders; and
? in the long run, the acquired projects should provide guaranteed growth in profits of the Company in a continuous and reliable manner.
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How does the Company strike a balance between protecting the interests of shareholders and working with the government’s policy on investing in more costly environmental projects?
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Question content:
How does the Company strike a balance between protecting the interests of shareholders and working with the government’s policy on investing in more costly environmental projects?
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Answer:
To abide by the laws has consistently been the principle of the Company in undertaking any project construction. All construction projects of the Company are in compliance with the State’s production and environmental policies.
The State’s policy to intensify efforts on environmental protection is beneficial to the society and in accordance with the sustainable development strategy, thereby guaranteeing the shareholders’ long-term benefits. The Company gives its full support to the policy.
The Company will make concrete analysis on specific projects, and adopt measures for effective environmental protection. This will not be only for satisfying the State’s environmental protection requirements for electricity-related projects, but also for preserving the interests of its shareholders.
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In view of an expected decrease in utilization hours for the next two years, how will the Company ensure a reliable inflow of income?
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Question content:
In view of an expected decrease in utilization hours for the next two years, how will the Company ensure a reliable inflow of income?
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Answer:
(a) To enhance market analysis and forecasting work; to upgrade the timeless, accuracy and completeness of collected information; and to grasp the market pulse in a timely manner under the increasingly competitive market environment.
(b) To research on the operation modes of power grid and the operation situation of power plants, and to grasp all opportunities striving for developing the power market.
(c) Pinpointing on the change from a tight supply to a relative supply-demand balance and the distinguishing feature of power shortage in certain regions or for particular timeframes, to focus on the fundamental work such as planning on the annual generation volume for each of the regions, and committing contracts on sales of electricity and on electricity transmission adjustments among power grids.
(d) To reinforce market risk analysis, to formulate strategies on enhancing supply and sales that are beneficial to the Company and to strive for increasing the utilization hours of the generating units.
(e) To actively participate in the development of regional power markets and to diligently research on market mechanisms. Likewise, to reinforce the co-operation among power plants of the Company within the same market; to organize concisely and to quote prices using scientific methods for maximizing the benefits of the Company as a whole.
(f) To closely follow and analyze the policy for power tariffs; to carry out power tariff work with emphasis and focus so as to increase the overall sales of electricity.
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