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Leadership Speech

Dear Shareholders,

2016 was the opening year of China’s 13th “Five-Year Plan”. The 13th “Five-Year Plan” for renewable energy, wind power, solar energy and natural gas development has been introduced, which is anticipated to have positive impact on the development of the Group’s business. With the government’s strong support on clean energy and new energy industries, the Group actively expanded its renewable energy and clean energy business in 2016 and accelerated the development of wind resource reserves, grew rapidly in installed capacity and continuously improved its operational and management standards, significantly increased the utilization hours of wind farms were actively promoted the construction of natural gas infrastructure projects, continued to explore the downstream user market, developed its CNG and LNG business as in an orderly and prudent manner to actively build a secured multi-gas supply system.

In 2016, the Group realized total sales of wind and photovoltaic power generation of 4,534 million kWh; sold 1,111 million cubic meters of natural gas; the consolidated total assets of the Group amounted to RMB29.374 billion; realized revenue of RMB4,384 million, total profit of RMB744 million and net profit of RMB647 million, of which the net profit attributable to the owners of the Group amounted to RMB542 million.

In 2017, the Group will continue its business development direction of focusing on new energy and clean energy, giving full play to its listing platform as well as the management resources of wind power and natural gas. To secure energy sources as its first priority and followed by project implementation. With the support of the capital market and having wind power and natural gas business as the base, the Group will actively seek for other types of business in new energy and clean energy, strive to build a much stronger business structure, keeping abreast to new technologies and their application. By euriching the technical content of our operation, we will strengthen the Group with a more reasonable business structure, a more diversified source of profit, a more efficient management system and more targeted fund management measures, so as to steadily enhance the management for production, operation and maintenance and become a highly recognized listed company known for its innovative capability and sustainability for enhancing shareholder value and protecting shareholders’ interests.

 

Cao Xin

Chairman

Shijiazhuang, PRC, 21 March 2017