China Huadian achieved year-on-year growth in operating income and total profit in the first half of 2022

The latest data shows that in the first half of 2022, ChinaHuadian GroupThe main indicators such as operating income and total profit of the Co., Ltd. (hereinafter referred to as "China Huadian") have achieved year-on-year growth, and have been ranked as the "Double A" in the annual and term operating performance assessment of the State-owned Assets Supervision and Administration Commission of the State Council for the first time and last year, and have been rated as the A-level assessment of the three-year action assessment of central enterprise reform. Behind the impressive report card, the reform of state-owned enterprises is inseparable from the in-depth advancement of state-owned enterprise reform. Since the launch of the three-year action plan for state-owned enterprise reform in 2020, China Huadian’s goals and tasks have been basically completed, and a series of important phased results have been achieved. The competitiveness, innovation, control, influence and risk resistance of enterprises have been further enhanced.

Live mechanism

Break the "old three irons" and build the "new three energy"

Wu Ke, who has worked in Guodian Nan Ziwei Company for many years, received another reward this year.

As the director of the R&D center, Wu Ke, a technical leader in thermal control major, has made considerable contributions to the scientific research and development of the enterprise. The independent and controllable DCS he participated in the research and development solved the "bottleneck" problem of major equipment key core technologies in the energy field. Its achievements won the first prize of China Electric Power Science and Technology Progress and have been put into operation or implemented in nearly 20 units.

Strengthening positive motivation, he is not the only beneficiary. In the past two years, the company has established a market-oriented salary incentive mechanism, which has improved the treatment of personnel in key positions, and the root causes of talent loss and restrict vitality have been removed one after another.

Huadian Technology Steel Structure Design Institute, which was recently established, has broken the tradition of design and R&D personnel to "eat big pot" and optimize the management of design and research and development personnel, so that more work and more gains can be fully reflected.

The focus of state-owned enterprise reform is to release vitality and improve efficiency. China Huadian has enriched the reform toolkit, improved the market-oriented salary distribution mechanism, and flexibly carried out medium- and long-term incentives. In the reform of the three systems, we will break the "old three irons" of "iron seats, iron rice bowls, and iron wages" and establish the "new three energy" of "managers can go up and down, employees can go in and out, and income can increase and decrease."

Managers can go up and down. At present, China Huadian subsidiaries at all levels have fully realized the term system and contractual management of the management level, and some subsidiaries have promoted the rigid implementation of the professional manager system, and the adjustment of the management personnel at the end and incompetent withdrawal of the management personnel are adjusted.

Employees can enter and exit. We have comprehensively promoted the marketization of employment, and all new employees are recruited publicly, and a market-oriented employment system with labor contracts as the core and job management as the basis.

Income can increase or decrease. Establish a new business responsibility system covering all management members at all levels, highlighting business performance, and highlighting rigid rewards and punishments. Deepen the performance appraisal of all employees, and give priority to the front line, to talents, and to value creators.

The key to the reform of state-owned enterprises is to "live" the mechanism. Only when the mechanism is activated and people’s potential is released will the enterprise be more competitive and achieve high-quality development. In the practice of implementing the three-year action plan for state-owned enterprise reform, China Huadian continues to turn its blade inward and innovate mechanisms to allow "people" to play greater value in the development of enterprises.

Excellent layout

Continue to improve the ability to transform and develop

In Daban City, Urumqi, 6 fans are being piled and hoisted on the Gobi Desert with a radius of 1,800 square kilometers. By the end of this year, 124 fans and 147,600 photovoltaic panels will stand here. This is a 1 million kilowatt wind power photovoltaic base project invested and built by China Huadian.

In July this year, the first unit of Suwalong Hydropower Station, the first hydropower station in the upper reaches of the Jinsha River, was officially put into production and power generation, marking the substantial progress in the creation of a national-level large-scale wind and light water storage demonstration base in the upper reaches of the Jinsha River.

In recent years, China Huadian has continued to improve its transformation and development capabilities, and regards wind and photovoltaics as the company's medium- and long-term incremental entity, actively develop hydropower, orderly develop natural gas power generation, continue to promote the positioning of coal-fired power functional regulation power supplies, and actively plan and steadily expand the development of emerging businesses such as energy storage and hydrogen energy. The carbon peak action plan and the "13th Five-Year Plan" carbon emission white paper were released, and a carbon asset operation company was established. 105 power generation companies completed the national carbon emission rights transaction performance, completed the first national CCER (national certified voluntary emission reduction) offset carbon quota clearance. The carbon emission rights performance completion rate in the first fulfillment cycle of the national carbon market reached 100%. Through practical actions, China Huadian's responsibility to actively respond to the "dual carbon" goal.

Advance and retreat, lightly. In 2021, China Huadian increased its efforts to reduce the number of legal persons, effectively controlled the net increase in the number of households, and took multiple measures to improve efficiency and increase profits. The total reduction of 32 legal persons was reduced, exceeding the SASAC task goals, and the completion rate of "two non-" divestitures was 100%. The company's asset-liability ratio continued to maintain the best enterprise of the same type.

Chuang Technology

Promote high-level science and technology self-reliance and self-improvement

Innovation is the primary driving force for development. How can the country shoulder the country's heavy weapons? China Huadian concentrates its advantageous resources and drives scientific and technological innovation with institutional innovation.

On July 12, China Huadian's first 1,200-meter hourly electrolytic cell and gas diffusion layer product were successfully launched, marking a key step in the road of electrolytic water hydrogen production equipment and key technologies for hydrogen fuel cells. Behind the achievement of innovative achievements, China Huadian has played an important role in deepening reform—

A series of reform measures have been implemented in China Huadian, enhancing employees' innovative vitality.

While activating the key variable of "scientific and technological personnel", China Huadian also seeks institutional innovation and accelerates the transformation of scientific and technological achievements. In 2020, China Huadian established a hydrogen energy technology research center, building a "1+1+N" group science and technology management system and Huadian science and technology innovation ecosystem with one think tank + one Central Research Institute + N R&D institutions, actively creating a collaborative innovation platform for "production, education, research and application" to provide strong support for the country to achieve the "dual carbon" goal and build a clean and low-carbon new power system, a safe and efficient energy system.

We will increase the research and development of key core technologies, fully promote the research and development of joint research projects of central enterprises, projects to make up for shortcomings and national key special projects, and achieve major breakthroughs in independent controllable industrial control systems such as DCS and 9E gas turbine TCS and the online operation of new energy domestic cryptographic systems, successively solve a number of "bottleneck" problems, and create 7 "first domestic" in a year. Promote the construction and digital transformation of "Digital Huadian", jointly build the "Chang'an Chain" with Beijing, and launch the first application scenario in the field of power procurement, China Huadian's "Sunshine Procurement Chain".

Strengthen Party Building

Promote the modern enterprise system to a deeper and more practical

Upholding the leadership of the Party and strengthening Party building are the "roots" and "soul" of state-owned enterprises.

China Huadian will carry out the Party’s leadership throughout the work of reform and development. The red gene background becomes more distinct and the role of the red engine is stronger.

To fully implement the "two consistent" principles, strengthen the Party's leadership in improving corporate governance, and transform institutional advantages into governance effectiveness, the key lies in correctly handling the relationship between the Party Group (Party Committee) and the board of directors, management and other governance entities, and form a corporate governance mechanism with legal rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances.

To this end, China Huadian has carried out a series of explorations: better integrate the Party’s leadership into corporate governance, fully complete the “Party Building into the Charter”, comprehensively establish a “two-way entry and cross-appointment” leadership system, innovate the Party Group’s pre-research methods, and effectively improve governance efficiency while controlling decision-making risks; subsidiaries at all levels fully realize that all boards of directors should be built, and external directors account for the majority.

The board of directors must cover a wide range of contents and enhance functions. China Huadian adopts a combination of internal transfer and external recruitment, establishes a talent pool for external directors at two levels, and regularly organizes director performance training and board work training. The quality of the construction and operation of the enterprise board of directors has been improved, and strengthening the Party’s leadership and improving corporate governance have also achieved better unity.

General Secretary Xi Jinping emphasized that we must unswervingly deepen the reform of state-owned enterprises, focus on innovating systems and mechanisms, accelerate the establishment of a modern enterprise system, give full play to the enthusiasm, initiative and creativity of all kinds of talents in state-owned enterprises, and stimulate the vitality of various factors. Under the strong leadership of the Party Central Committee with Comrade Xi Jinping as its core, China Huadian will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, overcome difficulties with key issues, and win the three-year action plan for state-owned enterprise reform to ensure that reform results can stand the test of history and practice, and welcome the successful convening of the 20th National Congress of the Communist Party of China with practical actions.