During a recent investor inquiry session, China Longyuan Power Group Corporation Limited outlined its established, comprehensive lifecycle cost management system. This framework spans the entire project lifecycle, from initial planning and construction through to operations, financial control, post-project evaluation, and equipment decommissioning.

Initial Project Phase

In the preliminary project stage, the company enhances resource assessment and feasibility studies, employing scientific methods to calculate investment parameters. It continuously refines technical plans and design standards to boost project economics from the outset. The company strictly regulates preliminary expenses and deepens cost control during the feasibility study phase to ensure investment quality.

Construction Phase Management

For engineering and construction, the company strengthens project cost management and strictly controls engineering changes. By expanding centralized procurement, it effectively reduces equipment purchase costs. The company reported that the engineering costs for its wind and photovoltaic projects in 2025 have decreased year-on-year.

Operational Efficiency

Regarding production operations, management is enhanced across multiple areas including project handover, warranty acceptance, production operations, equipment maintenance, technical upgrades, energy conservation, equipment decommissioning, and integrated production planning. These measures have effectively lowered the per-unit capacity operation and maintenance costs for both wind and solar power.

Financial Controls and Optimization

In terms of capital management, the company has fully implemented zero-based budgeting to reinforce cost discipline. It continuously optimizes its financing structure, secures long-term low-cost funding, and improves capital utilization efficiency. Concurrently, it advances the optimization of existing debt by restructuring loan portfolios and adjusting interest rates, leading to a reduction in overall debt costs. The company's average financing cost continues to maintain a competitive advantage within the industry.