Yangtze Power

China Yangtze Power Co., Ltd. is a listed company whose main business is hydropower generation. In 2003, building on its restructuring and establishment, the company further established and improved its corporate governance structure, gradually refined its internal control system, and fully achieved its annual production and operating targets and tasks. In September and October of that year it acquired the first four generating units of the Three Gorges Project to enter operation, bringing its total installed capacity to 5,515 MW and making it the largest listed hydropower company in China at the time. In 2003 the company generated a total of 20.637 billion kWh of electricity, exceeding its annual plan; main business revenue was 2.986 billion yuan, total profit 2.145 billion yuan and net profit 1.438 billion yuan.

In November 2003, the company made its initial public offering of 2.326 billion A shares and listed, connecting with the capital markets. The business philosophy the company established was to supply high-quality clean electricity to society, deliver satisfactory returns to shareholders, and create the greatest room for development for employees. It designated 2004 a “year of development” and a “year of management”, setting annual operating targets of main business revenue of 5.621 billion yuan, total profit of 3.922 billion yuan, net profit of 2.618 billion yuan and earnings per share of 0.333 yuan.

In terms of power production, the company’s plan for 2004 was for the Three Gorges power plant to generate 34.02 billion kWh for the year, of which the company’s four units would contribute 16.872 billion kWh, and for the Gezhouba power plant to generate 15.38 billion kWh for the year, striving for combined generation of 50 billion kWh from the Three Gorges–Gezhouba cascade power stations. It planned annual electricity sales of 49.235 billion kWh and aimed to keep total costs and expenses within 2.213 billion yuan.

In terms of business management, the company proposed to transform from a traditional state-owned enterprise into a public company, from focusing solely on production to placing equal emphasis on production and business operations, and from being accountable only to its controlling shareholder to being accountable to all shareholders. It aimed to standardise information disclosure, deepen investor relations management and improve its incentive and constraint mechanisms, and to actively pursue capital operations, successively acquiring newly commissioned units of the Three Gorges Project and other high-quality power assets in order to optimise its generation mix and expand its installed capacity, building a listed clean-energy company characterised by integrity, sound governance, transparency and strong performance.