HUANENG POWER INTERNATIONAL, INC.: The Profit Attributable to Equity Holders of the Company Increased by 21.09% Compared to the Same Period Last Year

BEIJING, July 29, 2014 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI", the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its unaudited operating results prepared in accordance with the International Financial Reporting Standards ("IFRS") for the six months ended June 30, 2014.

For the six months ended June 30, 2014, the Company and its subsidiaries recorded consolidated operating revenue of RMB 64.606 billion, representing an increase of 0.85% compared to the same period last year. The profit attributable to equity holders of the Company was RMB 6.808 billion, representing an increase of 21.09% compared to the same period last year. Its earnings per share were RMB 0.48 and earnings per American Depositary Share ("ADS") were RMB 19.2 (equivalent to approximately USD 3.12). The increase of the Company's net profit was mainly attributable to the fall of the coal price and the increase of power generation , each compared to the same period last year.

During the first half of 2014, in face of structural changes of the Chinese economy and the stagnant growth of total electricity consumption nationwide compared to the same period last year, the Company seized the favorable situation of the decline coal prices with strict controls on expenditure and strengthened internal fuel management efforts, while encouraging its power plants to make more power generation and control coal prices. The Company has achieved satisfactory performance of each of its business plans in the first half of 2014.

Power Generation.  In the first half of this year, the operating power plants of the Company within China achieved a total power generation of 151.739 billion kWh, aggregate electricity sold of 143.554 billion kWh, and a total of 2,374 utilization hours, representing an increase of 1.51%, an increase of 1.62%, and a decrease of 24 hours, respectively, compared to the same period previous year.

Cost Control.  Coal supply still outstripped demand within China in the first half of 2014, leading to a sharp fall of the prices of both domestic and imported coal. With a close watch on market changes, the Company seized the favorable market opportunity by taking various efforts for fuel cost controls, including adjustment of business modes and structures, strengthened strategic cooperation with large coal companies, increased purchase of competitively priced imported coal, and enhanced management of internal fuels through automatic and digital means.

Energy Conservation and Environmental Protection.  The Company attaches great importance to energy conservation and environmental protection and has equipped all of its coal-fired generating units with desulphurization devices. For the first half of this year, the Company's coal-fired generating units with a total power generation capacity of 55,059 MW (representing approximately 90% of its total coal fired generating capacity) had completed the denitrification process or were newly equipped with denitrification devices. Since the new emission standards promulgated by PRC Government took effect on July 1, 2014, emissions of sulfur dioxide and nitrogen oxide from the Company's generating units were generally in compliance with the requirements of these standards, while the dust removal devices on certain generating units of the Company will be upgraded.

Project Development and Construction.  For the first half of 2014, the Company obtained approval for its Liaoning Huaneng Yingkou Xianrendao thermal power project (100 MW), Shanxi Huaneng Dongshan Gas Turbine Project (859 MW), Jiangsu Huaneng Liuhe Wind Farm Project (49.5 MW) and Huaneng Hunan Guidong Wind Farm Project (36 MW).

In addition, Tembusu Phase II Project A (32.5 MW) of Tuas Power Ltd., which is wholly owned by the Company, was put into operation. The aggregate power generation of Tuas Power Ltd. accounted for a market share of 21.6% in Singapore, representing an increase of 0.7% from the same period last year. Certain generating units of the Company had also experienced upgrade for increased capacity, and the installed capacity from power plants which we have minor interests has also changed. As of June 30, 2014, the Company had a controlled installed capacity of 66,888 MW, of which 9.34% came from clean energy sources (hydropower, wind power and gas turbine).

For the second half of this year, the Company will continue accelerating the transformation of its development mode; further consolidate and optimize its geographical coverage; make increased efforts on structural change; strengthen its investment and strategy in clean energy so as to further advance its synergy in relevant sectors as well as to accomplish its targets for the year. The Company will also strengthen the management of safe production to ensure safe, stable and economical operation of its generating units; reinforce the marketing efforts to maintain its leading position in terms of utilization hours. It will also strengthen its efforts for cost and expense controls and improved construction project management, make consistent endeavors focusing on sustained profitability, and maintain sustainable, healthy and sound development of the Company.

~ End ~

Encl: The consolidated financial information of the Company and its subsidiaries prepared under IFRS for the six months ended June 30, 2014.

About the Company
The Company is one of China's largest listed power producers with controlled generation capacity of 66,888 MW and equity-based generation capacity of 60,184 MW. The power plants of the Company are located in 19 provinces, municipalities and autonomous regions in China. The Company also has a wholly-owned power company in Singapore.

For enquiries, please contact:
Huaneng Power International, Inc.                            
Ms. MENG Jing / Ms. ZHAO Lin                                                        
Tel: (8610) 6608 6765 / 6322 6596                      
Fax: (8610) 6641 2321                                     
Email: zqb@hpi.com.cn

Wonderful Sky Financial Group Limited
Ms. Erica Tao / Ms. Irene Gao / Ms. Mary Ma/ Ms. Corrine Wang
Tel: (852) 2851 1038
Fax: (852) 2865 1638
Email: ericatao@wsfg.hk / irenegao@wsfg.hk / maryma@wsfg.hk / corrinewang@wsfg.hk


                                                                                                     








HUANENG POWER INTERNATIONAL, INC.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET (UNAUDITED)
 AS AT June 30, 2014

(Amounts expressed in thousands)


As at
June 30, 2014


As at
December 31, 2013

ASSETS

RMB


US$


RMB

Non-current assets






    Property, plant and equipment

182,484,813


29,658,824


181,415,181

    Investments in associates






          and joint ventures

17,139,717


2,785,678


16,678,694

Available-for-sale financial assets

3,087,236


501,761


3,111,164

Land use rights

4,447,762


722,884


4,491,285

Power generation licence

3,989,469


648,399


3,837,169

Mining rights

1,922,655


312,485


1,922,655

Deferred income tax assets

1,064,199


172,962


652,358

Derivative financial assets

7,241


1,177


14,245

Goodwill

13,090,776


2,127,613


12,758,031

Other non-current assets

3,505,361


569,717


3,165,067

Total non-current assets

230,739,229


37,501,500


228,045,849

 

Current assets






Inventories

6,690,458


1,087,384


6,469,026

Other receivables and assets

2,563,746


416,680


2,072,981

Accounts receivable

13,558,063


2,203,560


15,562,121

Derivative financial assets

67,644


10,994


91,727

Bank balances and cash

11,957,720


1,943,460


9,433,385

Assets held for sale

-


-


557,671

Total current assets

34,837,631


5,662,078


34,186,911

Total assets

265,576,860


43,163,578


262,232,760



       


As at
June 30, 2014


As at
December 31, 2013


RMB


 US$


 RMB

EQUITY AND LIABILITIES






Capital and reserves attributable to equity
      holders of the Company






    Share capital

14,055,383


2,284,388


14,055,383

Capital surplus

17,306,919


2,812,853


17,347,068

Surplus reserves

7,085,454


1,151,582


7,085,454

Currency translation differences

(326,211)


(53,018)


(817,243)

Retained earnings






-Proposed dividend

-


-


5,341,046

-Others

26,247,328


4,265,916


19,438,957


64,368,873


10,461,721


62,450,665

Non-controlling interests

14,324,735


2,328,165


12,742,309

Total equity

78,693,608


12,789,886


75,192,974







Non-current liabilities






Long-term loans

60,990,577


9,912,654


60,513,671

Long-term bonds

18,723,908


3,043,152


23,726,550

Deferred income tax liabilities

2,052,316


333,558


2,032,417

Derivative financial liabilities

438,370


71,247


383,405

Other non-current liabilities

2,358,441


383,312


1,404,898

Total non-current liabilities

84,563,612


13,743,923


88,060,941

 

Current liabilities






Accounts payable and other liabilities

22,209,276


3,609,622


25,321,374

Taxes payable

1,738,134


282,495


1,647,925

Dividends payable

5,771,894


938,092


166,270

Salary and welfare payables

199,526


32,428


188,837

Derivative financial liabilities

55,213


8,974


43,591

Short-term bonds

15,336,846


2,492,661


15,135,024

Short-term loans

39,024,528


6,342,564


37,937,046

Current portion of long-term loans

11,273,276


1,832,219


12,796,956

Current portion of long-term bonds

6,710,947


1,090,714


5,690,650

Liabilities held for sale

-


-


51,172

Total current liabilities

102,319,640


16,629,769


98,978,845

Total liabilities

186,883,252


30,373,692


187,039,786

Total equity and liabilities

265,576,860


43,163,578


262,232,760


For the convenience of the reader, translation of amounts from Renminbi (Rmb) into United States dollars (US$) has been made at the rate of US$1.00=Rmb6.1528 announced by the People's Bank of China on June 30, 2014. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at June 30, 2014, or at any other certain rate.

 


 

HUANENG POWER INTERNATIONAL, INC.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2014

(Amounts expressed in thousands, except per share data)


 

For the six months ended June 30,


2014


2013


RMB

US$


RMB

 Operating revenue

64,605,521

10,500,182


64,062,329

Tax and levies on operations

(488,913)

(79,462)


(521,253)

 

Operating expenses

Fuel

 

 

(34,570,038)

 

 

(5,618,586)


 

 

(35,677,117)

Maintenance

(1,534,273)

(249,362)


(1,433,270)

Depreciation

(5,792,669)

(941,469)


(5,605,718)

    Labor





Service fees on transmission and

(2,518,878)

(409,387)


(2,409,750)

transformer facilities of HIPDC

(70,386)

(11,440)


(70,386)

Purchase of electricity

(2,572,420)

(418,089)


(2,664,797)

Others

(2,640,025)

(429,077)


(3,364,720)

Total operating expenses

(49,698,689)

(8,077,410)


(51,225,758)

Profit from operations

14,417,919

2,343,310


12,315,318

Interest income

80,816

13,135


83,862

Financial expenses, net





    Interest expense

(3,726,906)

(605,725)


(3,948,892)

Exchange (loss)/gain and bank charges, net

(51,126)

(8,310)


85,959

Total financial expenses, net

(3,778,032)

(614,035)


(3,862,933)

Share of profits of associates/jointly controlled entities

728,274

118,365


319,493

Gain on fair value changes of financial assets/liabilities

4,119

669


7,427

Other investment income

57,573

9,358


185,576

Profit before income tax expense

11,510,669

1,870,802


9,048,743

 Income tax expense

(3,089,354)

(502,106)


(2,288,062)

Net profit

8,421,315

1,368,696


6,760,681

 

HUANENG POWER INTERNATIONAL, INC.


For the six months ended June 30,


2014


2013


RMB


US$


RMB







Other comprehensive income/(loss), net of tax






Items that may be reclassified subsequently to profit or loss:






Fair value changes of available-for-sale financial asset

(19,317)


(3,140)


9,659

Share of other comprehensive income/ (loss) 






of investees accounted for under the equity method

7,730


1,256


(38,022)

Effective portion of cash flow hedges

(76,754)


(12,475)


308,856

Translation differences of the financial






  statements of foreign operations

491,391


79,866


(629,007)

Other comprehensive income/(loss), net of tax

403,050


65,507


(348,514)

Total comprehensive income

8,824,365


1,434,203


6,412,167







Net profit attributable to:






- Equity holders of the Company

6,808,372


1,106,549


5,622,740

- Non-controlling interests

1,612,943


262,147


1,137,941


8,421,315


1,368,696


6,760,681







Total comprehensive income attributable to:






 - Equity holders of the Company

7,211,063


1,171,997


5,274,863

- Non-controlling interests

1,613,302


262,206


1,137,304


8,824,365


1,434,203


6,412,167







Earnings per share attributable to the






equity holders of the Company






(expressed in RMB per share)






- Basic and diluted

0.48


0.08


0.40

Dividends paid

-


-


-







For the convenience of the reader, translation of amounts from Renminbi (Rmb) into United States dollars (US$) has been made at the rate of US$1.00=Rmb6.1528 announced by the People's Bank of China on June 30, 2014. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at June 30, 2014, or at any other certain rate.

SOURCE Huaneng Power International, Inc.



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