Operational Overview - The company operates a total of 60 power plants with a controlling installed capacity of 51,570.5 MW, including 40,225 MW from coal-fired generation and 5,118.1 MW from gas-fired generation[6]. - The renewable energy generation capacity amounts to 6,227.4 MW, which includes hydro, wind, and solar power projects[6]. - The company has a total workforce of 27,386 employees as of December 31, 2018[6]. - The company has significant ownership stakes in various power plants, with the highest being 100% in several facilities, including the Zouxian Power Plant (2,575 MW) and the Shiliquan Power Plant (2,060 MW)[7]. - The company has a controlling interest of 69% in the Zouxian Company, which has an installed capacity of 2,000 MW[7]. - The company reported a total of 5,906.4 MW capacity from the Hubei Company, with an ownership interest of 82.56%[10]. - The installed capacity of Huadian International Power Co., Ltd. in Hubei includes 2,570 MW from Xiangyang Company, with a 60.10% ownership stake[12]. - The company has a total of 1,311.5 MW from Ningxia New Energy Company, fully owned by Huadian International[13]. - The company operates a total of 660 MW from Jiangling Company, fully owned[12]. - The installed capacity of Huadian's wind power projects includes 99.3 MW from Longkou Wind Power Company, with a 65% ownership stake[14]. Financial Performance - The group's revenue for 2018 was approximately RMB 87.419 billion, an increase of about 11.41% compared to 2017, with electricity sales revenue of RMB 69.111 billion, up 12.13% year-on-year[18]. - The operating profit for 2018 was approximately RMB 6.269 billion, an increase of about 43.16% year-on-year, primarily due to increased power generation and higher grid electricity prices[18]. - The net profit attributable to shareholders for the year was approximately RMB 1.446 billion, with basic earnings per share of RMB 0.132[18]. - The company reported a significant increase in revenue, achieving a total of 10 billion RMB for the year, representing a 15% year-over-year growth[32]. - The company’s revenue for the year ended December 31, 2018, was RMB 87,419,418 thousand, an increase of 11.3% from RMB 78,463,912 thousand in 2017[155]. - Operating profit for 2018 was RMB 6,268,605 thousand, up 43.1% from RMB 4,378,937 thousand in 2017[155]. - Net profit for the year was RMB 1,912,032 thousand, representing a significant increase of 174.3% compared to RMB 694,476 thousand in 2017[155]. - The total comprehensive income for the year was RMB 1,896,138 thousand, an increase from RMB 672,141 thousand in 2017[155]. Investment and Expansion Plans - The company plans to expand its renewable energy projects to enhance its sustainability and reduce carbon emissions[6]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its operational capabilities[6]. - Approximately RMB 16 billion is planned for investment in 2019, with about 68% allocated to power project infrastructure, 27% to environmental protection and energy-saving technology upgrades, and 5% to other projects[26]. - The company is focused on expanding its power generation and heating services across China, leveraging its established infrastructure[164]. - The company is actively evaluating potential mergers and acquisitions to enhance its market position and operational capabilities[164]. Environmental and Sustainability Initiatives - The company aims to transition from scale expansion to efficiency improvement, focusing on high-quality transformation and development to become a competitive integrated energy company[25]. - The management team emphasized the importance of sustainability initiatives, with a goal to reduce carbon emissions by 30% by 2030[32]. - Environmental protection policies are becoming stricter, requiring higher standards for the company's projects and operations[27]. - The company will focus on enhancing ecological and environmental self-discipline and improving the management of environmental protection facilities[27]. - The company emphasizes the importance of legal compliance in asset acquisitions, project development, and contract management to mitigate legal risks[26]. Governance and Compliance - The company emphasizes strict adherence to corporate governance principles, achieving compliance with the Hong Kong Listing Rules and maintaining a governance level that exceeds the requirements of the Corporate Governance Code[101]. - The board consists of 11 members, including 4 independent non-executive directors, ensuring a strong balance of oversight and independence[103]. - The company has established a Securities Trading Code for directors and employees, which is stricter than the standard code outlined in the Hong Kong Listing Rules[101]. - The independent non-executive directors possess extensive skills and experience, with one being an accounting professional, enhancing the board's ability to provide independent judgment[104]. - The company has implemented a comprehensive investor relations management system to enhance communication with shareholders[101]. Risk Management - The company has established a risk management and internal control system, which is reviewed at least annually to ensure its effectiveness[119]. - The risk management system aims to manage rather than completely eliminate risks, providing reasonable assurance against significant misstatements or losses[120]. - The internal control department conducts annual evaluations covering operations, business, finance, and major procedures[121]. - The management is responsible for the design, implementation, and monitoring of the risk management and internal control systems[122]. Shareholder Engagement - The company allows shareholders holding more than 10% of shares to request the convening of an extraordinary general meeting within 10 days of submitting a written request[138]. - The company’s last annual general meeting was held on June 26, 2018, in Beijing, where the chairman addressed shareholder questions[139]. - The company is committed to enhancing shareholder value, with plans to increase dividends by 10% in the upcoming fiscal year[32]. Financial Reporting and Audit - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2018[145]. - The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), ensuring compliance and transparency[165]. - The company’s annual report for 2018 was published in April 2019, providing comprehensive financial information[143]. - The audit committee reviewed the group's annual performance and financial statements for the fiscal year ending December 31, 2018[96]. Employee and Compensation - The total number of employees in the group as of December 31, 2018, was 27,386, with a focus on performance-based compensation and a fair distribution mechanism[130]. - Independent non-executive directors received a pre-tax allowance of approximately RMB 80,000 each in 2018[131]. - The company has implemented an active profit distribution policy, prioritizing cash dividends, with a minimum cash dividend ratio of 40% during profit distribution[136].