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Message from the president

Dear Shareholders,

In 2017, the Group was confronted with multiple difficulties and challenges such as mounting downward pressure on China¡¯s economy, overcapacity in the power generation sector, continuous decline in utilization hours of power generation facilities and surging coal price. However, under the strong leadership of the Board of Directors of the Company, the Group rose up to the challenges and took the initiatives to speed up business transformation and development and emphasize efficiency improvement, thereby maintaining good momentum in business operation and development. It focused on business transformation and upgrading, optimized and earnestly implemented its development plans for the ¡°13th Five-Year¡± period. During the year, the Group obtained approval for an aggregate capacity of 2,176 MW, all of which was for new energy projects including the 300 MW offshore wind power farm in Fuqing Haitan Strait, the 300 MW Huadian Yuhuan No. 1 offshore wind power project, the 1,200 MW gas turbine project in Zengcheng, Guangzhou and other clean energy projects in central and southeastern regions, laying a solid foundation for the green development of the Group. Thanks to its efforts in putting new projects into operation and promoting the progress and quality of project construction, the Group added 567.9 MW to the consolidated installed capacity of its clean energy business in the year, mainly including the wind and solar power projects with good economic benefits in central and southeastern regions without grid curtailment. In respect of quality and efficiency enhancement, the Group strove for revenue expansion and cost reduction in an all-round way and strictly monitored coal and gas prices and five kinds of expenses. As a result, the Group recorded a total profit of RMB2,808 million for the year with return on net assets exceeding 10%.

2018 is the outset year for full implementation of the guiding principles from the 19th CPC National Congress and a crucial year for pushing ahead with the ¡°13th Five-Year Plan¡±. In line with the state¡¯s energy development policies and power development plans, Huadian Fuxin will position itself for the new era, brave difficulties with firm confidence and adhere to the new development philosophy. To be specific, it will pursue high-quality development of its projects, enhance operation and management efficiency in an all-round way, strive to build an investment and financing platform with strong functions and speed up in the establishment of a professional service platform for new energy. Besides, it will further enhance regulatory compliance by consistently promoting law-based corporate governance and compliance operation, and accelerate in fostering the core competitiveness of the Group for the new era. To sum up, Huadian Fuxin will endeavor to create a new dimension for development in the new era and bring greater returns to all shareholders.

Lastly, on behalf of the management team of the Group, I would like to extend my gratitude to all shareholders, the Board of Directors and the board of supervisors of the Company for their trust and support and also to all employees for their hard work and contribution!

General Manager Wu Jianchun