Dear Friends and Partners,

Electricity is a critical part of our daily lives. As demands for energy grow, the need to provide clean electricity with minimum effects on the environment becomes increasingly important. Also as the natural resources needed to produce energy become scarcer, providing energy at reasonable costs will also become a bigger challenge. As one of the world's largest power companies, AES owns and operates a diverse and growing portfolio of generation and distribution businesses with the capacity to serve 100 million people worldwide. Our power plants encompass a broad range of technologies and fuel types, from coal to gas to renewables such as wind, hydro and biomass. Beyond power, we also mine coal, turn seawater into drinking water, and are committing significant resources to alternative sources of energy to ensure a sustainable future.

AES was the first American power company to enter China in the early 1990s. Today, AES China remains one of the few foreign players in the power sector. We currently operate eight plants in seven different provinces and municipalities, including the 2,100 megawatt Yangcheng plant - the first "coal by wire" power plant in China. Our diverse operations in China also include gas-fired, oil-fired, hydroelectric, wind and four coal-fired plants.

At AES and AES China, social responsibility is an important part of our culture. That is why AES China is committed to being an important part of the communities where we do business and improving lives in the communities we operate in. AES China employees have made donations to local primary and middle schools and funded scholarships for university students. In addition, they have provided financial assistance for a number of local community projects, including the construction of roadway lighting, a police station, a flood control damn, a railway line and a pipeline to bring fresh water to a neighboring village.

In the future, AES China will continue to grow and meet the challenges of the evolving electricity market in China with the passion and enthusiasm we are known for the world over. That is the power of being global.

Sincerely,

Manuel Perez
President AES China