The principal business of the Group is to develop, construct, own, operate and manage large scale power plants in China.The Company has 100% or controlling interest in its six large-capacity coal-fired power plants under commercial operation and 50% equity interest in the associated company, Changshu Power Plant. The Company also owns a 63% controlling interest in Wuling Power Corporation, which is one of the leading hydropower companies in China. In addition, the Company owns a 18.86% stake in Shanghai Electric Power Co., Ltd., which is listed on the Shanghai Stock Exchange. Currently, the Company has an attributable installed capacity of approximately 11,585 MW, among which the hydropower installed capacity is approximately 2,528MW and hence the Company has the highest percentage of hydropower capacity among the overseas listed Chinese independent power producers.

2010 was the first complete accounting year for Wu Ling Power to be consolidated into the Group. Wu Ling Power is primarily engaging in hydro-power development, generation and supply in Hunan and Guizhou. Benefitting from the favourable government policies, hydro-power enjoys apparent competitive advantages and strong profitability with high growth potential. The asset structure of the Group has been further optimized with the additional hydro-power assets. Risks associated to coal-fired business were reduced and pressure of rising costs of fuel used in coal-fired power was relieved by a more balanced and beneficial fuel mix. The Group recorded a strong growth in sales volume of power and profit, and achieved significant improvement in profitability as compared to 2009. Wu Ling Power contributed satisfactory results to the Group and its net profit amounted to approximately RMB591,117,000, accounting for 68.24% of the net profit of the Group. Fully leveraging on the strategic advantages of "balanced hydro and coal-fired generation", the business operation of the Company show a diversity among the industry.

In 2010, turnover of the Group was approximately RMB14,436,659,000, representing an increase of approximately 32.00% as compared to the previous year. Profit attributable to equity holders of the Company was approximately RMB666,892,000, representing an increase of approximately RMB147,884,000 as compared to the previous year. The basic earnings per share was approximately RMB0.13.

In 2010, the net profit of the Group amounted to approximately RMB866,255,000, representing an increase of approximately RMB314,645,000 as compared with the previous year. Among which, the net profit of hydro power amounted to approximately RMB591,117,000 while the net profit of coal-fired power amounted to approximately RMB275,138,000, representing a ratio of 2.15 to 1. Hydro power contributed strong and stable stream of profit for the Group, while coal- fired power continued to contribute positive earnings as a whole.