China Guodian Corporation was established on 29 December 2002, with the approval of the State Council, in the restructuring process of China power industry, serving as the locomotive in the national power industry, tasked with a historical mandate to build up a well-to-do society in all fronts and to power the ever-accelerating modernization drive of China.

Since its inception, China Guodian Corporation has surmounted numerous challenges in its initial development such as undesirable asset quality, low ROA (return on assets), fierce market competition, shortage of growth capital, excessive investment risk-taking, raw material shortages and high operational cost.With development as the consistent highest priority and the scientific concept of development deep-rooted and implemented, we have constantly improved management and efficiency and made gratifying achievements. Within a matter of three years, the total installed capacity had grown from 22130MW by establishment to 35060MW by 2005. And from 2003 to 2005, total assets grew from 73.3 billion RMB Yuan to 132.8 billion RMB Yuan, core business revenue from 26.1 billion RMB Yuan to 42.8 billion RMB Yuan and profit from 1.43 billion RMB Yuan to 2.178 billion RMB Yuan while the generation coal consumption had been reduced from 375 g/kWh to 361 g/kWh. All these contributed to the preservation and increase of State assets value and laid a solid foundation for rapid, sound and sustained corporate growth.

Meanwhile, China Guodian Corporation has defined the guideline of ‘being pragmatic and innovative, larger and stronger’ and established a standardized management system.We have explicitly put forward the target of achieving ‘3×400MW’ each year in average, the ‘1691’ Project as strategic planning and building plants, new and innovative in ‘four aspects’.As a result, we have made considerable progress in capacity building and generation source restructuring. In the past three years, installed capacity has been increased by 12930MW with an average annual growth of 4310MW.We have established a permanent mechanism for safety, resulted in even stronger safe operations. We have also defined the orientation towards overall restructuring and going public, by initiating ‘three restructuring rounds’ and ‘three institutional reforms’ internally. An industry chain centered around our core business has come into shape with increasingly more prominent ‘Guodian’ features. Moreover, new models and mechanisms for human resources management have been explored in the bid to foster a competent workforce of employees and managers. We have innovated our efforts ideological and team-building and nurtured a unique corporate culture and philosophy. We have grown into a major influential national power generation corporation that keeps growing in a sound track.

The first two decades of the 21st century represent an important era of strategic opportunities for China’s economic development and social progress as well as a crucial stage for China Guodian to achieve development on the basis of rationality, resource conservation and harmony.At this new juncture of history, in keeping with the mandates of building a resource-saving and environment-friendly society, we will fully leverage our advantages with regard to technology, environmental protection, energy conservation, clean energy, renewable energy sources, etc., adhere to the strategy of giving priority to hydropower generation, optimizing coal-fired generation, appropriately developing nuclear power and actively promoting new and renewable energy, vigorously implement the ‘1691’ Project, speed up restructuring endeavors, and improve our comprehensive corporate strength and reputation.

Under the leadership of the CPC Central Committee and the State Council, guided by the ‘Three Represents’ notion and the scientific concept of development, and on the basis of the best of SOE traditions, China Guodian Corporation will strive to grow into a large-size modern international holding corporation with economy of scale, resource efficiency and market orientation so as to make greater contribution to preserving and appreciating the value of state-owned assets and to building up a harmonious socialist country with a well-to-do standard of living.