In 2019, CR Power, under the strategic guideline of the "double engines and two wings" of the Group, actively coped with challenges of macroeconomic situation, and the in-depth development of energy revolution and industrial revolution, focused on transformation, innovation and quality development management themes, seized opportunities, overcame difficulties, marched forward in a fast, steady and earnest way, and gave an excellent answer to the 70th anniversary of China and shareholders thereof with outstanding business results!
In order to review the development track of CR Power in 2019 in an all-round way and sum up and display corporate business results and practical results, CR Power conducted the activity of "Collection and Selection of Major Events in 2019" within the scope of the entire company. CR Power received 118 great events submitted by all the units in total, among which 18 events were shortlisted upon comprehensive screening. Upon the voting for shortlisted events by members of the management of CR Power, the "Ten Great Events of CR Power in 2019" were finally selected. Specifically:
1. The wind power development speed of CR Power hit a record high

Along with the grid-connection of #15, #16 and #18 fans of the Longquan Wind Farm of Sui County, Hubei Province on December 12, 2019, the wind power grid-connection capacity of CR Power exceeded 9,000 MW, 198 days after the wind power grid-connection capacity exceeded 8,000 MW on May 28, 2019. In 2019, CR Power newly added the wind power grid-connection capacity of 1,958.9 MW. It marked that the wind power construction and development were accelerated further, clean energy accounted for a larger percentage, and business structure was optimized further, laying a solid foundation for the satisfactory completion of strategic objectives in the period of the "Thirteenth Five-year Plan" and the construction of a world-class clean energy enterprise.
2. "Power Transmission from Hezhou to Guangdong" energy precise poverty alleviation project of CR Power was formally established

On April 19, 2019, the "Power Transmission from Hezhou to Guangdong" energy precise poverty alleviation project of CR Power was formally established. As per the plan of the project, the Hezhou Power Plant of CR Power can annually transmit the power of 3 billion KWH in 2019 and 2020. In the two years, the Hezhou Power Plant can add local industrial output of about RMB1.98 billion and taxes of about RMB90 million, effectively enhancing local economic endogenous development force and assisting in the place getting rid of poverty on schedule. Meanwhile, the capacity of the Hezhou Power Plant was released, creating the marginal revenue of RMB480 million and easing the business difficulty thereof.
The Hezhou Power Plant, located at the inland of Guangxi and far from load center, is the power plant with the largest coal transport distance in Guangxi, without any competitive advantages in market electricity. Especially after the comprehensive opening of Guangxi power market, it has been difficult for it to strive for electricity power, and its business situation has been severe. Under the support of the Group, CR Power, Guangdong Province, Guangxi Province and China Southern Power Grid jointly established the “Power Transmission from Hezhou to Guangdong” energy precise poverty alleviation project, realizing "poverty alleviation by industry, precise poverty alleviation and poverty alleviation by consumption", improving enterprise operation, assisting in local poverty alleviation, and established the first long-acting mode of transmission of surplus power from a poverty-stricken area to a developed area in China, playing a demonstration role in "national counterpart poverty alleviation, counterpart poverty alleviation of central enterprises and precise poverty alleviation in electricity industry", and being of important significance for and profound influence on the poverty alleviation collaboration of Guangdong and Guangxi.
3. The first offshore wind power project of CR Power in China was approved

On December 17, 2019, the first offshore wind power project of CR Power in China, i.e. Cangnan 1# offshore wind power project, was approved. The project, located at the eastern sea of Cangnan County, Wenzhou City, Zhejiang Province, records the total installed capacity of 400 MW, the supporting construction of 220 kV offshore booster station and one land centralized control center and the total investment of about RMB7.14 billion. It indicated that CR Power had made a breakthrough in the clean energy business and started a new chapter about offshore wind power development.
4. The carbon capture technology test platform of CR Power was formally put into production

On May 15, 2019, the first multi-thread and multi-technology test platform of carbon dioxide capture technology (CCUS) based on ultra-supercritical thermal power plant, ranking the third in the world, was formally put into operation at Haifeng Power Plant of CR Power. The said platform advocates spirits of "opening" and "sharing", and provides test site and technical services for customers with different customers and carbon capture technology. The project includes test platform area, chemical laboratory and technology and international communication center. The carbon dioxide capture capability of 20,000 tons/year is designed for Phase I.
Along with global concerns about climate warming, the emission reduction of carbon dioxide and industrial application need technical research and exploration. CR Power launched pioneering and pilot programs, actively explored the carbon emission reduction of conventional thermal power units, inspired the CCUS industrial chain of Guangdong Province and even China, integrated the technical demonstration of industry-university-research resource promotion, and made contributions to the carbon emission reduction and ecological civilization construction of China and even the world.
5. "Runyoushi" project won the first prize of the first safety science and technology progress award of China

In 2019, Phase 2 of function development of the "Runyoushi" project independently researched and developed by CR Power made a breakthrough, adding functions such as indoor and outdoor positioning technology, 3D visual application and intelligent terminal, and upgrading and adding 22 video algorithms. The project obtained 4 invention patents, 1 patent for utility model and 5 software copyrights, and was appraised by the China Occupational Safety and Health Association as "international advanced" scientific and technical achievements. On December 20, 2019, "Runyoushi" won the first prize of the first safety science and technology progress award of the China Association of Work Safety, among 1,113 declaration projects.
The "Runyoushi" operation site security intelligent control system, independently researched and developed under the leadership of the technology institute, has been promoted and applied at projects of Fengrun District of Tangshan, Puqi of Hubei, Yundong of Cangzhou and so on. The system innovatively applies technologies such as artificial intelligence image recognition, biometric feature recognition, intelligent sensing, intelligent robot, machine learning, 3D modeling and high-precision indoor and outdoor positioning, and mainly solves safety problems and difficulties such as the difficult supervision and management of production site, large monitoring blind area and weak monitoring areas, which is an important link of intelligent power plant construction. The system can be also applied in industries such as chemical industry, buildings, cement, airports, stations and supermarkets, provides intelligent solutions such as essential safety, disaster prevention and reduction and emergency rescue, and promote work safety. Therefore, it has a great market promotion value. This prize indicates that CR Power has obtained industry leading advantages in terms of intelligent power plant construction.
6. The wind power poverty alleviation development mode of CR Power made obvious effects

In 2019, CR Power actively promoted the "wind power poverty alleviation" development mode, and issued the Work Guidelines for Wind Power Poverty Alleviation Mode, propelling the realization of clean energy development strategic objectives in the period of the "Thirteenth Five-year Plan". In 2019, CR Power implemented wind power poverty alleviation project with the capacity totalling 235 MW in Guangdong and Hubei. CR Power has a cumulative capacity of 425 MW. It can provide power alleviation funds totalling around RMB28.4 million each year (RMB3,000 for each of 9,467 poverty-stricken households each year), helping about 28,400 poor people and achieving significant social benefits. Meanwhile, CR Power can provide the clean energy of about 900 million KWH each year, saving about 269,600 tons of standard coal, reducing the emission of carbon dioxide of approximately 474,100 tons and making remarked environmental protection and energy conservation benefits.
The wind power poverty alleviation development mode, an innovative measure realizing green transformation and innovative development objectives, can not only promote the regional collaborative development of the enterprise and the place concerned, but also solve different appeals of local governments, village collectives, villagers and so on in the process of project construction, showing satisfactory social, economic and environmental benefits.
7. Accelerated the special governance for reversing losses and realized zero losses
In 2019, CR Power comprehensively conducted the governance for enterprises recording losses, formulated "one policy for one plant" loss reversing measures for 6 major coal power enterprises of Banqiao, Shenyang, Liyujiang, Gucheng, Dengkou and Lianyuan recording losses, promoted the implementation of all measures, and finally obtained the comprehensive income exceeding RMB550 million through effective measures such as power transfer substitution, sales market expansion, economical coal blending and cost optimization, realizing the zero loss of all coal power projects.
The deep special governance for turning losses into profits is an important measure of CR Power carrying out the State's decisions on and arrangements for deepening the reform of the state-owned assets and enterprises and propelling supply-side structural reform. By firmly implementing the "one policy for one plant" loss reversing measures, CR Power has achieved the objective of "comprehensively eliminating coal power projects recording losses", laying a solid foundation for the high-quality development of CR Power.
8. CR Power obtained several international and regional honors such as the Asian Power Awards

In 2019, CR Power obtained 5 awards, i.e. the "Annual Best Coal Power Project in Asia", "Annual Best Wind Power Project in China", "Annual Best Photovoltaic Project in China", "Annual Best Transformation and Upgrade Project in China" and "Annual Best Information Technology Project in China" under the Asian Power Awards. It was the company obtaining the largest quantity and the most types of awards in Asia in this session. Meanwhile, CR Power and enterprises under it obtained 11 honors including the "Enterprise Green Governance Award - Enterprise Mission", "Excellent Environmental Protection, Safety and Health Award - Platinum Award", "Excellent Environmental Protection Management Award (Enterprise) - Gold Award" and "Award for Excellent Enterprise Obtaining Awards in Five Years Consecutively" under Hong Kong Green Awards.
The Asian Power Awards, sponsored by the magazine Asian Energy with the most influence in Asia, are aimed to commend excellent enterprises advocating technical innovation and sustainable development and fulfilling social responsibilities in the Asia-Pacific region, and are honored as the "Oscar in the energy sector". Their judges are top experts and leaders in the global energy industry. CR Power stood out from lots of international competitors, which was favorable for setting up and improving its brand image overseas and promoting overseas business development." The "Hong Kong Green Awards", which were sponsored by the Green Council of Hong Kong for the first time in 2010, are aimed to praise enterprises with outstanding contributions to eco-friendly procurement, environmental management and green governance.
9. CR Power issued corporate bonds of RMB9.8 billion in China, and financing costs of perpetual medium-term notes were the lowest in the industry in the same period
On March 18, 2019 and August 16, 2019, CR Power successfully issued 3-year corporate bonds of RMB4.8 billion in total at the Shanghai Stock Exchange, with the average nominal interest rate of 3.56%, hitting the lowest level in the industry in the same period; on December 17 and December 24, CR Power successfully issued 3+N-year perpetual medium-term notes of RMB5 billion at the National Association of Financial Market Institutional Investors, with the average nominal interest rate of 3.97%, hitting the lowest level among the interest rates of subordinated medium-term notes in the industry in the same period.
By seizing the time window of adequate and favorable domestic market liquidity, CR Power successfully issued corporate bonds and perpetual medium-term notes respectively. On the one hand, it was favorable for CR Power expanding multiple market financing channels, expanding direct financing scale and strengthening market recognition and setting up good credit image; on the other hand, it provided long-term low-cost fund guarantee for the sustainable development of CR Power, effectively optimized capital structure, and assisted in corporate strategic transformation.
10. Two units were put into use for the first ultra high-voltage external transmission project of CR Power

On November 11, 2019 and December 28, 2019, the 168-hour full load trial operation of #1 and #2 units of Xilingol Power Plant of CR Power was finished smoothly, realizing the annual objective of "putting two units into use". In the period of construction, objectives of "nine one-time successes" in chemical water making, DCS power receiving, hydraulic test, inversely feeding, cylinder buckling, ignition, impulse starting, grid connection and 168-hour trial operation and "three simultaneities" of environmental protection were achieved at high levels for the two units.
The Xilingol Power Plant, as the first ultra high-voltage external transmission project of CR Power, is the supporting power point of Xilingol League-Shandong 1,000 kV ultra high-voltage AC transmission channel, and is one of the first batch of coal and power pool projects primarily promoted by the State. After being put into production, it can generate power of 7 billion KWH annually, and realize the output of nearly RMB1.7 billion and generate taxes of nearly RMB400 million. It will play an actively role in alleviating the power supply pressure of Beijing, Tianjin, Hebei and Shandong, improving regional air quality, adjusting and optimizing energy production pattern and so on.