Huadian's next reform study is how the group is liberated from repeated approvals. And in accordance with the group's "grasping the total", the regional "doing the real", the grassroots "strong base" policy. The key is to make the regional companies "real".
The global economy is deeply adjusted, the growth rate of emerging economies is slowing down, and the Chinese economy has entered a new normal of medium and high speed development. With the changes in the domestic and international economic situation, the development situation of China's power generation enterprises has also had new challenges - the decline in electricity consumption, the reduction in electricity prices of coal-fired units, and the increasingly stringent environmental requirements. Faced with a series of new pressures, China Huadian Corporation started with a strategic strategy to accelerate the development of the “short boardâ€, deepen the reform and add momentum, and take the education activities to the wind and the work to a new level. The main business indicators have reached the best level in history and entered the best development period since its establishment.
Business homogenization is another major challenge for power generation companies. Among the power generation groups, Huadian Group has distinctive business characteristics, and its business structure and asset structure have been traded off. Instead of moving forward together, it has seized the key points and led the transformation and upgrading of enterprises in the high-end links of the value chain, laying the foundation for the next step of reform.
2014 is the first year of comprehensive deepening reform. In the new wave of reforms, the reform of state-owned enterprises has attracted the attention of all parties. How did Huadian comprehensively deepen the reform of the enterprise in accordance with the requirements of the Third Plenary Session of the 18th Central Committee and the deployment of the State-owned Assets Supervision and Administration Commission [microblogging]? Li Qingkui, chairman and party secretary of China Huadian Corporation, described the reform direction of Huadian to reporters: “Strive for three to five years to establish a clear strategic orientation, excellent governance structure, scientific management of the group, efficient system and mechanism, and basic management. Solid management, strong risk prevention and control, and a management system with Huadian characteristics, to modernize the corporate governance system and governance capabilities."
Layout transformation upgrade
China's power companies generally have a problem of low profitability. How to improve profitability is a difficult problem in front of power generation enterprises, and transformation and upgrading is the development path that power generation companies have chosen together. In the new power situation, the layout of the business sector directly determines how much the company is profitable.
"The healthy development of a company requires itself to adjust its structure and promote development. Under the current circumstances, quality and efficiency must be placed in a more prominent position." Li Qingkui said. Paying attention to the quality and efficiency of development is the basic principle for Huadian's transformation and upgrading.
Q: Since the first three quarters of this year, the growth rate of electricity consumption in China's whole society has slowed down, and even negative growth has occurred in August, which is not good news for power generation companies. What is the operation of Huadian in the first three quarters?
A: The current downward pressure on the economy is indeed very big. For power companies, it means the market is shrinking. We have predicted that by the end of the year, the growth rate of electricity consumption in the whole society will be about 4%. The overall situation of Huadian Group this year is still good. It is necessary to benefit from the market and benefit from management. The relative competitiveness of most regional operations is more obvious. In the first 9 months, the main indicators such as total profit, return on net assets, and value-added rate of state-owned assets have once again set a new record. The accumulated sales revenue was 161.5 billion yuan, up 5% year-on-year; the completed power generation was 369.7 billion kWh, a year-on-year increase. 7%, which is nearly three percentage points higher than the average growth rate of power generation of power plants above the national scale; 33.47 million tons of raw coal is produced, up 54% year-on-year; the asset-liability ratio is 83%, down 1.21 percentage points year-on-year; the company's clean energy accounts for the total installed capacity. The proportion has reached 30%.
In fact, the Chinese economy has entered a “new normalâ€. Under the background of slowing growth, the level of overcapacity has increased and the profit pressure has gradually increased. According to the current situation of China's power supply and demand, power generation companies need to plan ahead, achieve development and pressure, and strive to become stronger and better core industries.
Q: In the power industry, it is widely believed that Huadian has developed very rapidly in the past two years, relying on the transformation and upgrading of enterprises. In terms of transformation and upgrading, what kind of work does Huadian do?
A: The company is guided by the development strategy of 2014-2015, and strives to “fill the shortcomings†and make new progress in key projects. The first is to optimize the development of high-efficiency thermal power, with a focus on the development of thermal power “big chunks†with strong profitability and better comprehensive environmental protection benefits. The data shows that in the first half of the year, the company approved high-efficiency thermal power projects accounted for nearly 20% of the total national approval. Some key thermal power projects have been included in the provincial planning. A number of high-efficiency thermal power plants such as Shandong Laizhou and Jiangsu Jurong are becoming important support for the company's efficiency.
The second is to increase the proportion of clean energy. Up to now, our proportion of clean energy installed capacity has reached 30%. The proportion of clean energy in this newly approved project has reached 50%, and the installed capacity of photovoltaic power generation has reached one million kilowatts. In the field of hydropower with traditional advantages, on the basis of protecting ecology and immigration, the company will continue to consolidate the existing high-quality hydropower resources, and in the future will give priority to the development of hydropower projects with good conditions and quick results. In accordance with the new energy development ideas of “focusing on the development of wind power bases, actively developing low wind speed regions, and laying out the layout of offshore wind powerâ€, the company is actively promoting the construction of millions of kilowatts of wind power bases in Mengdong, Gansu, Ningxia, Xinjiang and Hebei. It is estimated that the company's wind power installed capacity will exceed 8 million kilowatts by the end of 2014, while steadily promoting the development of offshore wind power and starting construction in due course.
Third, strategic emerging industries are steadily advancing. With the advantages of natural gas power generation users and distributed energy sources, the company has actively expanded into natural gas supply and application fields in recent years. This is an important measure for us to focus on long-term development and meet the requirements of energy development and build a world-class energy group. The company's total installed capacity of natural gas power generation is 7.568 million kilowatts, and the annual gas consumption is about 3.7 billion cubic meters. By 2020, these two data will be refreshed to 20 million kilowatts and 14 billion cubic meters respectively. In addition, the company's shale gas development and LNG are in a leading position in non-oil central enterprises. Recently, Huadian Group Clean Energy Co., Ltd. was established to build a professional platform for the development of oil and gas business. At present, Huadian Clean Energy Co., Ltd. is mainly responsible for the exploration and development and management of the five shale gas blocks of the group company and the investment of future LNG receiving stations. In the future, LNG receiving stations will be built in Guangdong, Jiangsu, Shanghai, Zhejiang and Fujian. In addition to the domestic market, the company actively participates in overseas natural gas resource projects. In the middle of this year, the company officially completed the delivery of the first overseas LNG gas source project jointly with Sinopec [microblogging]. According to the agreement, Huadian and Sinopec jointly hold a 15% interest in the Pacific Northwest LNG project in Canada.
Q: In the process of transformation and upgrading, how to decide the acquisition and development of the business development sector?
A: Since 2013, we have accelerated the transfer mode, adjusted the structure, promoted innovation, and improved efficiency. We fully grasped the team, brought the team, promoted development, and promoted harmony. All the operational indicators reached the best level in history, profitability, competitiveness and The corporate image has been significantly improved, and a road of transformation and development with Huadian characteristics has emerged.
To sum up, the first is to adhere to the principle of improving quality and efficiency. Development is the last word. The development of a company must be a high-quality and profitable development, so that the company can continue to operate and its foundation is long-lasting.
The second is to adhere to the principle of improving the competitiveness of the main business. The main business is the foundation of Huadian, and it is the “housekeeping skillâ€. It can't deviate from the main channel at any time. Therefore, it is necessary to adhere to the idea of ​​power generation as the mainstay, and the coordinated development of coal, finance, engineering and other industries, taking the power generation industry as the main direction and not blindly expanding the industrial chain.
The third is to adhere to the principle of clean development. Clean and low-carbon is the trend of energy development, the only way to transform and upgrade, and the inevitable requirement for Huadian to fulfill its social responsibilities.
The fourth is to adhere to the principle of innovation drive. Innovation is an important driving force for the company's transformation and upgrading. We must vigorously implement the innovation-driven strategy, deepen technological innovation and management innovation, and accelerate the construction of innovative enterprises.
These principles, whether improving quality and efficiency, improving the competitiveness of the main industry, or driving clean development and innovation, boil down to the point of promoting the transformation and upgrading of Huadian's development and achieving sustainable development of the company.
Q: Huadian Group has done a lot of work in the transformation and upgrading. Has it set new targets for future development?
A: Since November last year, we have repeatedly discussed and researched up and down. According to the characteristics of our company, we have proposed the overall layout of the industry, which is based on power generation and coordinated development of coal, finance and engineering technology.
According to the country's demand for electricity for the entire economic and social development, we have formulated the "2014-2020 Development Strategy", proposing that the company's overall overall goal is to complete "1181" and achieve the "three doubling" goal by 2020. “1181†means that power generation capacity will occupy 10% of the national power market share, holding coal production capacity will exceed 130 million tons, asset-liability ratio will be controlled at around 80%, and return on net assets will reach 10%. “Three doublingsâ€, that is, asset size, sales revenue, and total profit all doubled in 2013.
How to further promote reform?
After the Third Plenary Session of the 18th CPC Central Committee, the new round of reform of state-owned enterprises has been opened. As an important part of the state-owned enterprise group, Huadian issued the “Opinions on Comprehensively Deepening Reform†within the group at the beginning of this year, establishing the six goals of the reform, eleven key areas and 25 reform measures, and completed the overall The "top design" of the reform.
Q: How do you envision the reform of Huadian Group?
A: After the Third Plenary Session of the 18th CPC Central Committee, we focused on the layout of the opening plan and acted early, and timely issued the company's comprehensive deepening reform opinions. Then, each special group has formulated reform plans for each key area. Six reform programs including strategic control and investment decision-making and regional management of power generation enterprises have been issued and implemented, and the coal specialization management plan has also been implemented. According to the company's actual situation, we adhere to the overall planning, top-level design, pilot first, step-by-step implementation, first build a strategic management and control framework, and then optimize the allocation of resources, and then establish a supporting incentive mechanism, interlocking, and steadily advance.
At present, the state has continuously increased the power of simple administration and decentralization, and has put a lot of management authority into the province. The characteristics of “provincially as an entity†have become increasingly prominent. At the same time, the national economy has shifted from the past shortage economy to the surplus economy, and quality benefits have become a new factor. The current system is no longer adapted to the new environment, and the focus of management and management is the general trend. Under the "new normal" of the economy, we put forward the strategic management and control reform ideas of the group headquarters "grasping the total", the regional companies "doing the real", and the grassroots enterprises "strong base", which conforms to the requirements of the times and adapts to the reality of our group. On the "grassing total", we must strengthen the strategic management and control capabilities of the group companies, step out from the traditional matters of approval, inspection and appraisal of specific matters, concentrate on the planning and promotion of the strategy, and grasp investment control, standard setting and resource allocation. , supervision and evaluation and policy research. The “real†regional company is the group company that puts down the regional management and good things, and enhances the vitality of the secondary unit and the motivation of doing the work by decentralizing the power, fully mobilizing the secondary unit in project development, production management, enterprise management and safety. Enthusiasm for environmental protection, coordination of services and party building work. All grassroots enterprises are the cornerstone of Huadian Building, and the foundation is not strong. The lean 7S management we are pursuing is to build the foundation through the “strong foundationâ€, so that the grassroots enterprises are safe, environmentally stable, profitable, with excellent main indicators, active institutional mechanisms, and good team building.
Q: Reforms often encounter a lot of resistance. How can we better implement the implementation within Huadian?
A: To raise awareness and enhance confidence. One of my deep feelings is that China is in an era of comprehensive and deep reform, and the tide of reform is booming, providing an important strategic opportunity for enterprise reform and innovation. Reforms in many areas, including state-owned enterprises, not only have the reform design and requirements from the party and the state, but also the source of power for the development and progress of our enterprises, and at the same time the expectations of the society and the people. We must seize the favorable opportunity of reform and make full use of the favorable conditions for reform. After more than ten years of reform and development, Huadian Group has initially entered a healthy track of sustainable development. However, to stand on a new and higher starting point, to achieve higher quality and better efficiency, we must adapt to the new situation of reform, unswervingly push forward reform, and further break through the reform and further break the scientific development of the company. Institutional and institutional obstacles, stimulate innovation, release development potential, enhance corporate vitality, flexibility, tactful response, rapid action, and constantly create a new situation for sustainable development of the company.
We must unify our thinking and build consensus. It is very complicated to comprehensively deepen reforms to touch deep-level management relations and interest adjustments. Therefore, reforms must constantly unify thoughts on the basis of full preparation and extensive communication in the preparation stage. Since the end of last year, we have carefully planned the company's comprehensive deepening reforms. According to the reform tasks and requirements, we have established a comprehensive reform leadership and special leadership institutions. The company's main leaders and in charge of leadership have pushed forward reforms. A series of reform and development forums and special symposiums were held in different levels, which widely listened to opinions and gathered consensus among all parties. At the same time, they also went to advanced fraternal units to study and research. The company's understanding of reforms continued to deepen and the ideas were more unified in the company system. It has formed a good atmosphere to support reform, participate in reform, and promote reform, and has made ideological and organizational preparations for deepening reform.
We must work hard and be practical. "It is better to open your arms when you break the scorpion." The key to reform is to land, and you need to be serious and really do. On the basis of doing a top-level design, we pay attention to grasping the strength, speed and tolerance of reform, and prioritizing and reforming reforms. Since the beginning of this year, in accordance with the requirements of the company's strategy and sustainable development, we have highlighted the key points of reform, seized the key, focused on improving decision-making efficiency and management efficiency, and vigorously promoted the reform of the management and control system; focused on improving the management level and promoting the regionalization of coal-fired power industry. Industrial specialization reform; focusing on the "big cost" intensive management, focusing on the reform of the resource allocation system of materials, fuel, capital, etc.; focusing on mobilizing the enthusiasm and creativity of cadres and employees, and promoting the reform of the incentive and restraint system. At present, various reforms are being promoted in a coordinated manner, implemented in an orderly manner, and achieved initial results.
To improve the style of work, measures are in place. The construction of style is the basis for ensuring the sustainable and healthy development of the reform. Recently, we successfully completed the second batch of practical education activities for the mass line. The company's system work style and mental outlook have presented a new atmosphere. Work style construction will always be on the road. We will do a good job in building a long-term mechanism. According to the requirements of General Secretary Xi Jinping's "Three Stricts and Three Realities", we will further strengthen the work style of cadres and teams around reform and development. We have also introduced a series of safeguard measures. Through the implementation of the “Thousand Talents Plan†selected by young and middle-aged talents, Huadian employees of different levels and positions have the opportunity to grow into talents; by vigorously promoting the core values ​​of socialism, we will build “ Huadian's core value system of "integrity, truth-seeking, harmony and innovation"; through the innovation of the party-building work system, perfecting the party organization's participation in major issues decision-making system, and ensuring that party organizations play a central role in major issues such as enterprise reform and development; System construction, implementation of the party committee's main responsibility in the construction of party style and clean government and the supervisory responsibility of the Disciplinary Committee, improve the level of governance according to law, and create a good environment for deepening reform and promoting the company's sustainable development.
Before being interviewed by reporters, Li Qingkui had just returned from local investigations. When talking about the scene seen by the Huadian reform pilot unit, he described it as "the reform of the hoof is stable and the situation is clear and positive." On Li Qingkui's schedule, in addition to intensive research arrangements, there are many world-renowned business representatives and foreign government officials. In Li Qingkui's view, Huadian should play a leading role in state-owned enterprises, assume the political, economic and social responsibilities of state-owned enterprises and achieve sustainable development.
Li Qingkui, a power engineer, has been in the power industry for decades. His reforms at Huadian not only focused on the overall situation, but also focused on the improvement of internal management of the group, the mobilization of employees and management, and the adjustment and optimization of the management system. . In the future, this well-managed power veteran will also lead Huadian to the next stage of reform. "We must rely on reforms to keep fit, so that we can seek for the situation, move from time to time, and take advantage of the trend."
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