Annual Report *
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* (A joint stock limited company incorporated in the People's Republic of China with limited liability) Stock Code: 1798 2016 Annual Report * Building 1, No.1 Caishikou Street, Xicheng District, Beijing, P.R.China Tel: 010-83956262 Fax: 010-83956519 Website: www.dtxny.com.cn 2016 Annual Report Annual 2016 * For identification purpose only * For identification purpose only Contents Chairman’s Statement 2 Message from the President 3 Company Profile 4 Key Operating and Financial Data 6 Financial Highlights 8 Management Discussion and Analysis 10 Major Events in 2016 28 Report of Directors 29 Corporate Governance Report 63 Investor Relations 86 Report of the Supervisory Committee 87 Profile of Directors, Supervisors and Senior Management 90 Human Resources 102 Independent Auditor’s Report 104 Consolidated Statement of Profit or Loss 111 Consolidated Statement of Comprehensive Income 112 Consolidated Statement of Financial Position 113 Consolidated Statement of Changes in Equity 116 Consolidated Statement of Cash Flows 118 Notes to Financial Statements 121 Glossary of Terms 252 Corporate Information 257 Chairman’s Statement Dear Shareholders, In 2016, Datang Renewable conducted exploration continuously and forged ahead resolutely. Facing opportunities and challenges for the development of renewable energy, we have always upheld the ideas of green development and optimised development. In addition to putting more efforts on optimisation of asset structure, we continued to enhance development quality. The gradual normalisation of management system and mechanism and continued enhancement of professional capacity promoted the benign and healthy development of the Company, laying a solid foundation for the new leaping development in the “Thirteenth Five Year” period. At present, the world economic situation is complicated and changing and domestic economy has entered a new normal, and global climate governance has been propelled in an accelerated way. With the formal effectiveness of the Paris Agreement and the expedited implementation of renewable energy quota and assessment mechanism, and policies on guaranteed acquisition and promotion of consumption, the National Carbon Emissions Trading Market will be officially put into operation and the accelerated implementation of “Go Global” strategy for energy will provide powerful policy guarantee for the development of new energy industry. Furthermore, competition in the industry has been intensifying with the deepening of the power system reform, bringing new challenges to the new energy industry. Confronted with opportunities and challenges, we will speed up the adjustment to industrial structure and optimisation of regional layout. Continued efforts will be exerted for building a first rate enterprise in accordance with standards. We will vigorously improve development quality, economic benefits and management, and continued to enhance the Company’s sustainable development capacity and comprehensive competitiveness to create more enterprise value for shareholders, staff and society. Finally, on behalf of the Board, I would like to express our heartfelt gratitude to all the shareholders and friends from all circles in the society for their trust and support. Chairman of the Board Chen Feihu 2 China Datang Corporation Renewable Power Co., Limited Message from the President Dear Shareholders, In 2016, the Board of the Company, with the great support from all shareholders, insisted on the development concept of “value-based, efficiency-oriented”, adopted prior planning and scientific layout, and proactively coped with the changes in the internal and external situation of the industry. While speeding up project development and adjustment to regional structure, the Company thoroughly implemented various measures for quality and efficiency enhancement and innovative development, giving rise to rapid increase in the size of installed capacity and significant promotion of economic benefit as well as continuous enhancement of sustainable development capacity and corporate soft power. The accumulated approved capacity throughout the year was 868.5 MW, and new grid connection capacity and capacity qualified for grid connection was 1,350 MW. The accumulated installed capacity exceeded 8,500 MW, hitting a new historic record again. The utilization hours of wind power generation units were 1,755 hours, representing a year-on-year increase of 10 hours, and electricity generation amounted to 12,297 GWh, representing a year-on-year increase of 1,536 GWh. With significant improvement of profitability, competitiveness and sustainable development capacity, the Company has witnessed a good opening of the Thirteenth Five-Year Plan period. At present, the Chinese economy is in a critical period for economic transformation and upgrading and the existing electric power pattern is confronted with new reform. With the effectiveness of the Paris Agreement, there will be more certainties with the energy and climate policies in the PRC, and renewable energy enterprises will enter a new period of development. In 2017, the Company will pay more attention to policy developments, and proactively cope with power system reform and challenges in the market. The Company will increase efforts for optimised development, proactively implement new development initiatives and reinforce management in accordance with the standards of first-rate companies, aiming at promoting new leaping development of the Company by leveraging opportunities and initiating a new situation for all kinds of work. In the end, we would like to extend our heartfelt gratitude to all the shareholders and friends from all circles in the society. Under the leadership of the Board, we will strive to achieve better development of the Company in the longer term through building up our confidence. President Zhou Kewen Annual Report 2016 3 Company Profile The predecessor of China Datang Corporation Renewable Power Co., Limited (stock code: 1798) was Datang Chifeng Saihanba Wind Power Generation Co., Ltd. (大唐赤峰塞罕壩風力發電有限 公司) which was established on 23 September 2004 and subsequently renamed to China Datang Corporation Renewable Power Co., Limited (中國大唐集團新能源有限責任公司) on 19 March 2009. It was one of the earliest power enterprises that engaged in the development of new energy in PRC. Since the establishment of the Company and after several years of rapid development, the Company was successfully listed on the Main Board of the Hong Kong Stock Exchange on 17 December 2010. As at 31 December 2016, the Company had a total of 7,273,701,000 issued shares, among which the Company’s controlling shareholder Datang Corporation holds an aggregate of 65.61%. The Group is principally engaged in the development, investment, construction and management of wind power and other renewable energy sources; research and development, application and promotion of low carbon technology; research, sale, testing and maintenance of renewable energy-related equipment; power generation; design, construction and installation, repair and maintenance of domestic and overseas power projects; import and export services of renewable energy equipment and technologies; foreign investment; renewable energy-related consulting services; as well as leasing of property. The Group is actively engaged in the renewable sources business including wind power, solar power and biomass. As at 31 December 2016, the Group’s consolidated installed capacity amounted to 8,497.92 MW, including 8,345.45 MW of wind power installed capacity. 4 China Datang Corporation Renewable Power Co., Limited Company Profile (Continued) Corporate Structure: As at 31 December 2016, the Company’s major corporate structure was as follows: Datang Jilin Datang Corporation Holders of H Shares 8.24% 57.37% 34.39% The Company China Datang Corporation Renewable Power Co., Limited 49% 100% 100% 86.57% Guangdong Yueneng Datang Renewable Power Co., Ltd. Datang Kunming Xishan Renewable Power Co., Ltd. Datang Tuquan Wind Power Co., Ltd. Datang Yilan Wind Power Generation Co., Ltd. 100% 100% 100% 100% Datang Yiliang Renewables Co., Ltd. Datang Dingbian Hujianshan Renewable Power Co., Ltd. Datang Hunyuan Mimazongliang Renewable Power Co., Ltd. Datang Huachuan Wind Power Generation Co., Ltd. 100% 100% 100% 100% Datang (Fuzhou) Renewable Power Co., Ltd. Datang Gonghe Renewable Power Co., Ltd. Datang (Kezuohouqi) Renewable Power Co., Ltd. Datang Jixian Wind Power Generation Co., Ltd. 100% 51% 100% 100% Datang Renewables (H.K.) Co., Limited DTM (Beijing) Energy Technology Development Co., Ltd. Datang (Keyouzhongqi) Renewable Power Co., Ltd. Datang Xilin Gol Wind Power Generation Co., Ltd. 51% 100% 100% 100% Datang Dianbai Renewable Power Co., Ltd. Datang Yan'an Renewable Power Co., Ltd. Datang Suibin Renewable Power Co., Ltd. Datang Bayannur Wind Power Generation Co., Ltd. 100% 100% 51% 100% Beijing Tanghao Electricity Engineering Datang Yantai Renewable Power Co., Ltd. Datang Pu'er Renewable Power Co., Ltd. Datang Zhangbei Wind Power Generation Co., Ltd. Technology Reasearch Co., Ltd. 100% 100% 100% 60% Datang Renewables (Singapore) Pte., Limited Datang Guazhou Renewable Power Co., Ltd. Datang Jiaonan Wind Power Generation Co., Ltd. Gansu Datang Yumen Wind Power Co., Ltd. 87.5% 100% 60% 100% Auschina Energy Development Limited Datang Shuyang Renewable Power Co., Ltd. Datang (Chifeng) Renewable Power Co., Ltd. Datang Yumen Changma Wind Power Generation Co., Ltd. 95.0% 100% 100% 100% Datang (Qingdao) Wind Power Generation Co., Ltd. Datang Sihong Renewable