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FAQ Message |
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 Please explain the Company's financial conditions and illustrate its relevant financing strategies. |
The Company maintains a sound and healthy financial status: The Company, backed up by strong cash inflows, maintains a satisfactory record in collection of electricity charges and accounts receivable settlements. The Company actively capitalises on its financial leverage and seeks to raise more capital to grasp every opportunity for development and to enhance the returns for shareholders. There has been a rise in the gearing ratio at a certain stage and this was only caused by an increase in the number of projects in-progress over the last two years. In about two years' time, with the completion and commence into commercial operation of the new projects, the Company's cash flow will improve significantly.
The Coal-Electricity Price Linkage Mechanism will effectively improve the Company's financial conditions: During the Year, the relevant state authorities implemented a series of policies which are conducive to the launch of "Coal-Electricity Price Linkage Mechanism". It is believed that such measures will effectively and reasonably help the Company ease the pressure on costs as caused by the increase in coal prices.
The new power plants will boost the Company's financial returns: From what we can see on the new power plants that have commenced operations during the last two years, the investment returns on the new power plants are higher than the existing ones as a result of effective cost control measures. With the commencement of operations of more new power plants, the Company's assets will improve the Company's overall profitability. Such development will further improve the Company's financial conditions.
The A share financing plan will help improve our financial strengths: The project of issuing A shares is in the pipeline. The successful issue of A shares will definitely provide a strong support to the Company's capital base and will help to adjust the Company's capital structure, thereby improving the Company's financial conditions and providing support to the Company's rapid business growth.
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