Datang Power Announces 2010 Interim Results

    HONG KONG, Aug. 20 /PRNewswire-Asia/ --

    Financial Highlights
    -- Operating revenue amounted to approximately Rmb28,946 million, an
       increase of 39.66% year-on-year.
    -- Net profit attributable to equity holders of the Company amounted to
       approximately Rmb912 million, an increase of 27.91% year-on-year.
    -- Basic earnings per share attributable to equity holders of the Company
       amounted to approximately Rmb0.0757, an increase of Rmb0.0151 per share
       year-on-year.

Datang International Power Generation Co., Ltd. ("Datang Power" or the "Company") (HKEx: 991; SSE: 601991; LSE: DAT; ADR: DIPGY) announced the unaudited consolidated operating results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2010 (the "Period").

For the Period, operating revenue of the Group was approximately Rmb28,946 million, representing an increase of 39.66% over the corresponding period of 2009 (the "Corresponding Period Last Year"). Net profit attributable to equity holders of the Company was approximately Rmb912 million, an increase of 27.91% year-on-year. Basic earnings per share attributable to equity holders of the Company amounted to approximately Rmb0.0757, an increase of Rmb0.0151 per share year-on-year. The board of directors of the Company did not recommend any distribution of 2010 interim dividend.

Mr. Zhai Ruoyu, Chairman of Datang Power, said, "During the Period, the PRC's economy maintained a steady rapid growth, with both power generation and power consumption nationwide showing a rapid recovery. Overall, power supply and demand in the PRC was balanced in general. Also, the Group seized the opportunities of the upward economic trend and a recovery of the power market, while continuing steadfastly the implementation of the development strategy of "pursuing the power generation business as its core development whilst complementing with synergistic diversifications", and pushed forward power-related upstream and downstream projects such as coal mining, coal chemical, railway construction and shipping at a steady pace in accordance with plans. The Group, with reference to changes in the State policies and the market environment, took initiatives in tackling the changes and making prompt responses, while ensuring steady, safe and orderly production and operation management. As a result, the Group achieved a significant growth in profit over the Corresponding Period Last Year."

During the first half of 2010, the operational generating units of the Group maintained safe and stable operation. Benefiting from the buoyant macro-economy of the country and the continuously strong demand of social power consumption, a growth in capacity of the operational generating units and an increase in average utilisation hours of the coal-fired generating units of the Company and its subsidiaries, total power generation and total on-grid power generation of the Group amounted to approximately 80.768 billion kWh and 76.013 billion kWh respectively, representing year-on-year increases of 31.75% and 31.65%.

During the Period, a total of new capacity of 3,511MW of generating units commenced operation. Of such new capacity, a total of 2,940MW was on the coal-fired front, with generating units at Lvsigang Power Company and Zhangjiakou Thermal Power Company commencing operations successfully; a total capacity of 473.5MW was from hydropower generating units at Wenshan Hydropower Development Company and Yuneng Group Company; and a total capacity of 97.5MW was from Inner Mongolia Windpower Company and Zuoyun Windpower Company.

In addition, the Group continued to push ahead its expansion in related upstream and downstream projects. During the Period, operating revenue from the coal business amounted to approximately RMB2,930 million, accounting for approximately 10.12% of the total operating revenue of the Group, representing an increase of approximately RMB813 million over the Corresponding Period Last Year. The Phase 1 project of East Unit 2 coal mine of Shengli Coal Mine pertains to a production scale of 10 million tonnes. The Group is also proceeding with the preliminary development works on the Phase 2 project of East Unit 2 coal mine of Shengli Coal Mine in Inner Mongolia, Wujianfang Coal Mine and Kongduigou Coal Mine. The successful development of the above-mentioned coal mine projects and the successful acquisition of Baoli Company, which pertains to a designed production capacity of 1.2 million tonnes per year, will increase the coal self-sufficiency ratio of the Group's power plants.

As regards the coal chemical business, the Duolun Coal Chemical Project is in the process of construction and the project is expected to become a new source of profit growth of the Group upon operation. Meanwhile, the Keqi Coal-based Natural Gas Project will, upon completion, benefit from an increasingly higher demand for clean energy from Beijing and other markets along the gas pipelines; whilst the Fuxin Coal-based Natural Gas Project has been approved by the National Development and Reform Commission and will, upon completion, benefit from an increasingly higher demand for clean energy from the rapidly developing Shenyang and its peripheral cities. The two projects will help lift the profit level of the Company as a whole.

Jiangsu Datang Shipping Company Limited ("Datang Shipping Company"), in which the Group holds 97.54% interest, actively commenced shipbuilding works and entered into relevant agreements on planned construction of four 45,000-ton bulk cargo vessels and two 76,000-ton bulk cargo vessels, thereby further expanding the fleet scale of the Group. The development and strengthening of Datang Shipping Company will help ease the tense situation facing the Group's coastal power plants in regard to transportation of thermal coal, stabilise transportation costs for thermal coal, and enhance its transportation self-sufficiency.

During the Period, the Company made steady progress in energy savings and emissions reduction. Coal consumption of the Group was approximately 324.92g/kWh, representing a decrease of approximately 1.88g/kWh over the Corresponding Period Last Year, while the consolidated electricity consumption rate of power plants was approximately 5.95%. The coal-fired generating units of the Company and its subsidiaries continued to achieve a desulphurisation facilities installation rate of 100%. Emission rates of sulphur dioxide, nitrogen oxides, smoke ash and waste water were approximately 0.459g/kWh, 1.41g/kWh, 0.131g/kWh and 86g/kWh, respectively. Emission rates of various pollutants were lower than the national average levels.

Looking forward to the second half of 2010, Mr. Zhai said, "In the second half of 2010, the aftermath of the global financial crisis will still linger. Although the domestic economy has been developing along the expected direction of the State's macro-economic controls, it still faces the risk of a relapse. The Group, therefore, has a daunting task on maintaining stable and healthy development and is faced with both opportunities and challenges. Although social power consumption will experience a first-high-then-low growth trend, thermal coal supply is expected to remain basically stable. However, uncertain factors such as shortage in coal supply and a surge in thermal coal prices remain. Faced with a difficult operating environment, the Group will continue to implement an overall strategy that focuses on "pursuing the power generation business as its core development whilst complementing with synergistic diversifications". The Group will do its utmost to achieve the production and operation targets for 2010 with a persistent focus on profitability and safe production. It will actively expand its room for development by fully leveraging its advantages in resources, scale, geographical distribution and costs. It will also exercise stringent cost controls and strive to contain unit fuel cost increase, with a view to enhancing the profitability of the Company."

Datang International Power Generation Co., Ltd.

Datang International Power Generation Co., Ltd. is one of the largest independent power producers in China. The Company has been listed on The Stock Exchange of Hong Kong Limited and the London Stock Exchange respectively since March 1997. Since September 2001, the Company's American Depositary Receipts (ADRs) have been traded in the U.S. over-the-counter market. The Company has been successfully listed on the Shanghai Stock Exchange since December 2006.

    Encl: Extract of Condensed Consolidated Income Statement (unaudited)
          http://www.prnasia.com/sa/attachment/2010/08/20100820340066.pdf

    For enquiries, please contact:

    Datang International Power Generation Co., Ltd.
     Mr. Grant Zhang / Ms. Karen Chen
     Tel: +86-10-8800-8678 / 8800-8682
     Fax: +86-10-8800-8684

    Rikes Hill & Knowlton Limited
     Mr. Karl Cheung / Ms. Christy Lai
     Tel: +852-2520-2201
     Fax: +852-2520-2241

SOURCE Datang International Power Generation Co., Ltd.