1.Works in 2003

The year of 2003 saw the Company’s stable development and remarkable progresses; it also saw how the Company was tested in the face of so many difficulties. We had to face the sudden nationwide spreading of SARS epidemics and face the weld defects in the connecting pips of pressure vessel. Under the correct leadership of China National Nuclear Corporation and the Board of Directors of the Company, focusing our works on production of unit one and installation of unit two, the General Managers Group made aborative organizations and careful plans to ensure both the stable production and smooth installation, and the success of fightion against SARS. With our common efforts, the beginning of the year, obtained good economic benefits. All the safety indicators were well controlled within our targets. All the commissioning tasks before fueling for unit two were completed ahead of schedule.

1) The performance of unit one was greatly improved, power generation plan for the unit was fulfilled 69 days ahead of schedule.

By October 23, total power generation of unit one reached the planned figure-3.5MWh.This means the first unit has fulfilled its yearly generation plan 69 days ahead of schedule. By the end of 2003, the first unit generated 4.617TWh, in which 4.324TWh supplied to the grid. The load factor of the unit was 81%, 6.25% increase than that of 2002.

2) The commissioning of unit two has been moving on smoothly according to the new progress plan.

On January 19, the hydraulic tests of the main system were completed, 19 days ahead of schedule. On April 2, tests of the containment intension and tightness were completed. On June 1, the first turbine running by non-nuclear steam was performed, 60 days ahead of schedule. By the end of November, 520 commissioning and testing items for unit two, about 86% of the total, have been performed and completed. There were 86 items to be performed or completed.

3) Production safety was well secured and met the annual control targets

At the beginning of 2003, according to the actual status production and construction and by certain regulations, we set up a series of yearly safety control targets. In 2003, we had 3 forced outages, no fire accident, no traffic accident, no serious accident of high pressure components, no equipment mistakes. The discharge of flowing outs was far below than the control point. In general, all the safety values were controlled within the yearly safety control targets, met the yearly control standards for securing safety production as requested by China Nuclear Industry Group Co.

4) We completed successfully by ourselves the overhaul and the first fuel replacement.

On April 4, 2003, we began the first refueling outage for unit one. It was a test on our maintenance team, and production organization and management system as well, as the tasks were to be performed mainly by us. With our common efforts, the tasks were completed on June 4. It took us 62 days, 18 days less than schedule.

5) The annual investment plan was completed in principal, cost control was well done, and financial status was good

6) Being active in cooperation and exchanges both with foreign forces and domestic, to improve our operation and management level

7) Improved and strengthened our internal management based on the present production and construction status of the Power Plant

8) Fresh progresses were made in spiritual civilization and enterprise culture

In the past year, under the correct leadership of the General Managers’ Group and the Party Committee of the company, the staff of the company were united closely, kept pace with times, never stopped striving, innovating and seeking for progress, obtained many fresh progresses in both material civilization and spiritual civilization construction. Many of these achievements were recognized by the State and the Party Committee. In April 2004, the Company got the “May 1st Labor Diploma”. In October, the project of “Design and Construction of Qinshan 600 MWe Nuclear Power Plant” mainly prepared by our company obtained the “First Class Scientific and Technological Progress” award by the State Commission of Science, Technology and Industry of National Defense. Mr. Ye Qizhen was elected as the academician of Chinese Academy of Engineering.

2. Master Plan for works in 2004

The year of 2004 is of vital significance in the development history of the Company. The second unit will be put into commercial operation, which represents the thoroughly completion of the construction. From then on, the focus of our work will be transferred to production and management.

Our targets in 2004 are: complete 102 outage of unit one, operate unit one smoothly, complete commissioning of unit two and bring it into commercial operation successfully; keep the two units be operated safely, stably and economically. The bottom line plan of power generation quantity of the whole year is 6.2 TWh, 6.4 TWh is our higher target. It is planned that we shall have 1.9 billion Yuan of sales income and 82 million Yuan of profit. We should ensure that all the control indexes set by CNNC are well met. We shall narrow our gaps with those top ones in the same field in such aspects as economic indexes, performance capabilities, production safety and enterprise culture. We shall increase the welfare status of our staff, get all of our staff united and motivated, to build our company into a first class nuclear enterprise.

Targets for unit one:

1.1.Operate safely until February 28, 2004, generate 0.9 TWh of power.

2.On February 28, shut down the unit, starts the 100 days, refueling outage. Try our best to shorten 20 days.

3. Ensure full power operation on June 10.

4. Ensure an annual power generation quantity of 4.1 TWh.

Progress and generation targets for unit two:

1. By February 1, complete fabrication and treatment of the weld defect in the pressure vessel;

2.2.By March 10, the first nuclear fueling;

3. By May 10, reactor reaches the first critical condition;

4. By June 10, the first connection with the grid;

5. By August 10, commercial operation;

6. Ensure an annual power generation quantity of 2.3 TWh.

Safety and quality control targets:

Unscheduled automatic shutdown should be no more than 10 times (4 times for unit one, 6 times for unit two, Man caused unscheduled automatic shutdown should be no more than 2 times for each unit. Accident rate of industrial safety should be lower than control value. Annual individual dose should be no more than 15mSv, annual total dose should be no more than 1300 person.mSv. The discharge of three types of wastes should be lower than control value, no unplanned discharge. Ensure no serious disobeying items, try hardly to avoid high level disobeying items, reduce normal disobeying items, prevent any type of serious quality accident and safety accident.

To have these targets fulfilled and have all tasks of the year be accomplished, we should give priorities to the following.

1. Ensure safe, stable and economic operation of generating units by cause everything related to production and operation be well implemented.

2. Carry out with great attention the maintenance works, in particular, the fuel replacement overhaul of unit one, to provide a solid foundation for stable operation of the units;

3. Complete successfully the commissioning of unit two, be ensure that the unit will be put into operation on August 10;

4. Take every possible measures to control overall investment, strengthen management and production;

5. Emancipate our minds, keep ace with the times, deepen our enterprise reform, improve our internal management level;

6. Strengthen enterprise culture building, which takes xocialist spiritual civilization as its core.