1. Business review of wind power
(1) Stable growth of installed capacity
In 2015, the Group newly increased 396.8 MW of consolidated installed capacity of wind power, and the accumulative consolidated installed capacity was 2,093.6 MW; the newly increased interest in installed capacity was 391.3 MW, and the accumulated interest in installed capacity was 1,922 MW.
As at 31 December 2015, the total designed capacity of the projects under construction of the Group was 704.9 MW.
(2) Decrease in the utilization hours of wind farms
In 2015, the average utilization hours of the Group’s consolidated wind farm were 1,887 hours, representing a decrease of 109 hours as compared with 2014, yet still 79 hours more than the average utilization hours in Hebei Province, mainly due to the significantly dropped of wind speed in November and December. The Group’s controlled wind farms realized a power generation of 3.161 billion kWh, representing an increase of 15.36% as compared with 2014. The average availability factor of the wind power generation units was 95.25%, representing a decrease of 2.53 percentage points as compared with 2014, mainly due to the faults in transmission line caused by the wires and iron towers in the wind farm covered with ice under the bad weather in the located areas.
(3) Continued to seek approvals for wind power projects
In 2015, the Group acquired 722.5 MW newly approved reserve capacity, in which class II resources area and class IV resources area were allocated with 432.5 MW and 290 MW, respectively, and the total approved reserve capacity amounted to 1,595.4 MW.
During the reporting period, wind power projects with 561 MW of the Group were listed as national approved plans and the accumulative capacity of the Group’s national approved plans has reached to 4,650.8 MW and the wind power project are located in 13 provinces across
(4) Enhancement of professional management level of construction
During the reporting period, the Group focused on enhancing the professional management level of construction and completed “the typical design of wind farm booster station” to standardize the outlook and function of the booster station. Chongli Jiaocheshan 49.3 MW wind farm project won the 2014-2015 Annual National Quality Investment Projects Award.
2. Key financial indicators of wind power business (including photovoltaic power)
During the reporting period, the Group realized wind power sales revenue of RMB1,428 million, representing an increase of 14.6% as compared with 2014 and accounting for 34% of the Group’s sales revenue. The increase of revenue was mainly due to two wind farms and one photovoltaic project were put into operation during the year, despite of the wind resources this year were less than last year.
(2) Operating cost
During the reporting period, the operating cost (including cost of sales, selling and distribution expenses, administrative expenses and other expenses) of the Group’s wind power business was RMB811 million, representing an increase of 17.7% as compared with 2014. This was mainly due to an increase in operating cost resulting from the wind farms and photovoltaic project gradually put into operation.
(3) Profit from operations
During the reporting period, the profit from operations of the wind power business was RMB617 million, representing an increase of 9.1% as compared with 2014. The increase was mainly due to an increase in wind power revenue, which resulted in the increase of profit. The gross margin was 49.8%, which was 2.4 percentage points lower than that in 2014. This was mainly due to the weaker wind resources and the reduction of utilization hours of wind power during the year, which resulted in a decrease in the gross margin.