Shasenhua, deputy general manager of Three Gorges Corporation: asset-liability ratio will gradually decrease

-Our correspondent Shing China Securities News Reporter: From May 8, 2008 to May 18, 2009, the Yangtze River Power reorganization Suspension is a year, why the reorganization so "strewn"? Shasenhua: This year's suspension time, not only investors feel tough, responsible for the Three Gorges main business overall listing scheme design of the system office staff also feel the same.　　On the one hand, due to the particularity of the Three Gorges Project, on the other hand, the capital market from cattle to bear, this environment reorganization work more difficult. In order to do a good job of reorganization, the Three Gorges Corporation set up a restructuring office, the reorganization plan from the brewing to the final release, experienced three stages.　　During the suspension period, there were two employees who had been fathers during this period; a few months ago, at the request of my daughter, I went to the barber shop for the first time and dyed my hair black. Adjustment program to market change China Securities News Reporter: What is the key to the reorganization plan? 　　The market has a variety of speculation on the restructuring plan, why the final choice of this reorganization plan?　　Shasenhua: The key point of programming is two: one is to inject the scope of assets, which to enter the listed companies and what not to enter; second, how to evaluate the injected assets, how the listed companies to the major shareholders of the payment, the transaction structure of the design.　　The first version of the restructuring programme, in addition to the announced plans to inject electricity from the Yangtze River Power generation assets, also considered the Three Gorges company under the Jinsha River downstream of the Xiluodu, to the home Dam two in the construction of power stations, and the main trading mode of targeted additional, to debt financing as a supplement to the existing debt of major shareholders to undertake the past, supplemented by a small amount of cash.　　China Securities News Reporter: Now the reorganization of the scheme in the scope of asset injection and trading methods have been a sharp adjustment, why? Shasenhua: From last August to this February, the preliminary plan underwent a difficult tuning process.　　As a result of the financial crisis, the Shanghai Composite Index fell to 1600多 points from about 3,600 points from the time of the Changjiang power suspension, and the major changes in the capital market and the feedback from the relevant departments made the scheme adjust the injection assets and trading methods. As the Jinsha River project is not yielding immediate benefits, from the maintenance of investors ' interests to consider temporarily do not inject, and the original with directional additional mainly trading mode has been changed, if the number of directional additional increase, equity increased more, will be diluted earnings per share, and if fully through debt financing, the net assets of each share must have an impact,　　is also not conducive to the next business, so the discussion decided to reduce the number of targeted additional to 20 billion yuan.　　Operation and maintenance funds are being implemented in China Securities News Reporter: What is the third phase of the work? Shasenhua: We got a happy result.　　The operation and maintenance funds of commonweal assets of Three Gorges Project are expected to be arranged from the National Special Fund, which will greatly reduce the burden of the company's operation. According to the relevant departments, in the Three Gorges Project construction period, that is, before 2009, the Three Gorges project involving the functions of flood control and shipping, the maintenance cost of commonweal assets is mainly from the income tax returned by the state to the Three Gorges, but there is no relevant institutional arrangement after 2009 years. After repeated communication, the State Council in May this year agreed to the principle of the State in the relevant special funds to arrange a certain amount of maintenance funds, by the Ministry of Finance to implement.　　The specific amount of funds is temporarily inconvenient to disclose, because it is still in implementation, but should be fully considered the needs of operation and maintenance. China Securities News Reporter: After the reorganization, the amount of assets and liabilities of the Changjiang power will increase?　　Will it affect subsequent operations? Shasenhua: After reorganization, long electric assets and liabilities ratio has been greatly improved, but only about 60%, and long electric production and operation of cash flow, annual depreciation of about 7 billion yuan (comprehensive depreciation rate of nearly 4%), this year net profit is expected to achieve 6.3 billion yuan, the future debt rate will gradually reduce.