PLAN FOR 2019

With the continuous implementation of the “13th Five- Year Plan” and the further deepening of the power market reform, the macro-economy is expected to grow at a stable but slightly slower pace and the development of the industry will continue to be under pressure given the influence of the continued supply-side structural reform of the domestic market. Against such backdrop, power demand is evolving in the direction of “slower growth, structural optimisation and change of growth drivers”, whereas power supply is “largely abundant, excessive in some areas, and sufficient to meet the demand”. The Company will maintain its strategic strength, stay focus on the clean energy industry, and continue to explore the electricity market according to government policies and market demands, and adopt a down-to-earth attitude to grow such business that has stable profitability. The Company will continue to focus on the environmental protection industry, keep an eye on the opportunities of industrial synergy, and carry out coordinated treatment and recycling of urban pollutants; study clean energy policies and market trends, and focus on subsidies for renewable energy and electricity market transactions (including quotas, spot, power generation rights, green cert i f icates, and carbon emissions) , incremental distribution networks and other market hotspots; track the latest technological progress of clean energy, step up the harmless treatment and co-processing of domestic waste, increase the capacity and efficiency of obsolete photovoltaic power plants, and integrate technical resources such as energy storage; continue to conduct international business research and track project opportunities in neighboring countries, especially those in Southeast Asia. In this regard, the Company aims to become a model enterprise in the industry.

The Company’s key task in 2019 remains primarily on the development of environmentally-friendly power projects. The Company will give priority to the expansion and radiation of stock projects to peripheral regions, continue to optimise the industrial layout, and continuously bring out regional scale benefits; vigorously develop environmental power generation, continue to develop large-scale wasteto- energy projects in prefecture-level cities and across regions, keep an eye on small-scale projects in countylevel regions, and continuously increase market share; track the recycling industrial projects that focus on domestic waste incineration and power generation with coordinated treatment of food waste, sludge and medical waste, and explore construction projects of joint treatment of waste incineration and biomass power generation. To steadily promote gas power generation, the Company will promote distributed energy projects of natural gas in mature key cities, and encourage production diversification by appropriately matching heat supply with installed power capacity. The Company will develop its wind and photovoltaic power segments in an orderly manner by expanding and establishing wind power projects in southeastern regions, and establish reserve projects of wind and photovoltaic power as appropriate in western regions, particularly those adjacent to the corridor of high-voltage electricity transmission.

KEY TASKS IN 2019

Overcoming operational difficulties and improving its operating results


The Group will continue to adhere to the principle of “maximising corporate efficiency” by taking “steady” and “growth” as its major goals, to make all-rounded marketing efforts in the power market, strive to generate more electricity to improve its economic efficiency, reduce production costs, improve capital utilisation efficiency, reduce capital redundancy and occupation, save capital costs and improve economic benefits. For natural gas power generation, we should strive for more valuable market electricity while ensuring the basic electricity volume, and at the same time, enhance the fuel cost control. For wind and photovoltaic power projects, we should take advantages of the current favourable situation, continue to reduce wind and photovoltaic power curtailment rate, and further improve its profitability. For hydropower projects, we should reverse the decline in profitability brought about by climate reasons, modulate water flow volume with scientific methods, and increase water-saving and power generation level. For waste-to-energy power generation, we should determine the amount of waste, ensure proper operation of generating units and improve the utilisation rate of generating units. For projects with poor performance, we will take targeted measures to overcome difficult situations and strive for a rebound in efficiency.

Strictly implementing the accountability system to ensure safe production


The Group will firmly establish the development concept of safe production, vigorously promote the idea of “lives and safety come first”, and continue to improve the safe production responsibility system, supervision system and support system. The Group will also implement safe production accountability system, and step up its safety supervision of key projects, key segments and key processes. Moreover, the Group will strengthen the transformation of generating units and ensure the reliability and safe operation of them in order to further improve the safety risk prevention level and the level of ecological environmental protection, which will ensure to meet the emission standards.

Keeping up with policy orientation and looking for project opportunities


In 2019, the Group will continue to focus on waste-to-energy environmental power generation, and strive to sharpen the edge of the segment. The Group will promote the coordinated development of existing projects in the region for wind and photovoltaic power projects, and accelerate the Phase II expansion work of qualified waste-to-energy environmental power projects so as to establish a regional benchmark. Relying on the existing waste-to-energy environmental power projects, the Group will actively explore opportunities for the development of veinous industrial parks, and attempt to develop power projects which generate electricity from medical waste, food waste and sludge treatment. In western regions, particularly the corridor of ultra-high voltage electricity transmission, the Group will look for development opportunities for wind and photovoltaic projects. In Jiuquan area of Gansu Province, the Group will explore the use of wind and photovoltaic curtailment to develop energy storage, heat supply and smart energy projects. In the meantime, the Group will continue to focus on project development in the “One Belt, One Road” countries and actively pursue quality project overseas.

Constructing quality projects with quality as the core


The Group will continue to strengthen project quality management so as to achieve high standards. Activation, construction and commencement of operation of the projects will strictly focus on the four requirements of “safety, progress, quality and costs”. The Group will coordinate and plan for the project progress, and reinforce the whole process management of the projects. On the premise of ensuring safety and quality, efforts will be made to improve the progress, and the Group will strengthen the overall investment control of projects. By reducing the auxiliary plant area, the Group will optimise the control of construction cost of structures and system design to ensure projects are completed with high quality.

Attaching great importance to talent development and improving core competitiveness of the enterprise


The Group will continue to adhere to its “people-oriented” value concept and assignment approach by reinforcing its talent incentive system, recruitment and assignment mechanism, strengthening the talents pool and trainings of professional talents, constantly optimising its workforce, developing a talent exchange mechanism between similar projects and further enhancing talent efficiency to establish a stable enterprise team with unity, pragmatism, progressiveness and aggressiveness.