|
|
 |
FAQ Message |
| |
 Please describe the development strategies of the Company. |
Strategy of Resource Securing: Datang Power is mainly a coal-fired power generation company. Stable supply of fuel and guarantee of transportation capacity are of great importance to the Company. The Company has made constant efforts in securing a certain amount of coal sources and corresponding transportation capacity. The Company invested and acquired an equity interest in the development project of the Tashan Coal Mine in Shanxi. The coal mine will be able to provide 10,000,000 tonnes of thermal coal to the Company once the production capacity has been established completely. At present, the preliminary work of the project progresses smoothly. The coal mine is expected to achieve initial production status at the end of 2005. The Company will also actively seek new development of coal sources, in order to secure its own coal sources to satisfy over 50% of its demand . During the Year, the Company invested in the Daqin Railway Corporation to secure significant transportation capacity assurance with a relatively small investment. The Company will also actively seek other opportunities to expand its transportation capacity resources to guarantee the transportation for the Company's coal sources and other thermal coal for electricity generation.
Strategy of Active Hydropower Development: In November 2002, the Company announced the development of hydropower projects in Yunnan Province, and became the first among its peers to invest in the hydropower sector. In 2004, the Chongqing Pengshui Hydropower project of the Company was approved by the State. The project comprises five 350 MW hydropower units (a total of 1,750 MW). After the completion of the project, hydropower assets will form a significant portion of the Company's total assets. On the basis of its existing hydropower projects, the Company will continue to seek appropriate hydropower resources with an aim to increase the share of hydropower in Datang Power's asset structure to 25% to 30% in the future.
Strategy of expanding into regions with market advantages: The Company will, on the basis of maintaining its market share in northern China and the western region and, through its rational distribution of newly-developed projects, further develop the eastern coastal markets. It will distribute its power generation assets strategically in the economically-developed but electricity-lacking region. In this region, the Company will deploy high-capacity, highly efficient generating units. These units will also need to meet the state's environmental protection requirements at the initial stage of design and construction, so as achieve superior standards in power generation technology. The economy of the eastern coastal region has been developing rapidly with a commemorate strong demand for electricity, and so the market advantage is very obvious. At the same time, having experienced several years' rapid development, the business sector and common residents in the eastern region are able to bear higher power tariffs, which will greatly enhance the future profitability of the Company.
|
| |
| Copyright © 2000-2005 Datang Power |
|
|
|
|
