Datang Power Announces 2012 Interim Results

HONG KONG, Aug. 21, 2012 /PRNewswire-Asia/ --

Financial Highlights:

Datang International Power Generation Co., Ltd. ("Datang Power" or the "Company") (991:HK; 601991:SH; DAT:LN; DIPGY:US) announced the unaudited consolidated operating results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2012 (the "Review Period").

According to International Financial Reporting Standards, the operating revenue of the Group increased by approximately 10.67% to approximately RMB36,877 million during the Review Period. Benefited from tariff increase as well as the profits contribution driven by clean energy projects (such as hydropower and wind power) and other non-power projects, net profit attributable to owners of the Company rose by approximately 23.87% to approximately RMB1,154 million. Basic earnings per share attributable to owners of the Company grew by approximately 16.06% to approximately RMB0.0867.

The Group maintained a stable and healthy financial position. As at 30 June 2012, cash and cash equivalents of the Group amounted to approximately RMB5,435 million, representing an increase of approximately 21.67% as compared to the end of 2011. The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2012 (2011: Nil).

Mr. Cao Jingshan, Vice Chairman & President of Datang Power, said, "In the first half of 2012, the slowdown of economic growth and other factors, which were a result of the combined effects of domestic and international factors, led to a lower growth rate of electricity demand in recent years. Power shortage continued in certain areas and during certain periods. The aggregate average utilisation hours of national power generating facilities decreased year-on-year. The profitability of the thermal power operations was still under pressure even though the price of thermal coal began to fall from May this year. Although our power generation business was hit by the deceleration of the economy, it still managed to maintain a steady pace and a greater growth in profitability."

Business Review

During the Review Period, the total power generation of the Group and the accumulative on-grid power generation increased by approximately 1.5% and 1.65% to 97.5877 billion kWh and 92.1577 billion kWh respectively. Benefited from the increase in on-grid power generation and the rise in average on-grid tariffs, revenues from electricity sales increased by approximately 8.27% to approximately RMB32,767 million, accounting for approximately 88.85% of the total operating revenue.

As at 30 June 2012, the Group managed an installed capacity of approximately 38,865MW, of which coal-fired power, hydropower and wind power accounted for 84.2%, 12.42% and 3.3% respectively. The proportion of capacity in clean and renewable energy accounted for 15.8%, continuously optimizing the power generation structure.

In addition, the Group continued to intensify and improve the technologies and facilities for energy saving, and reaped remarkable results in energy saving and emissions reduction. During the Review Period, total coal consumption for power supply was 318.15 g/kWh, representing a year-on-year decrease of approximately 1.52 g/kWh. Total consolidated electricity consumption rate of power plants was approximately 5.57%, representing a year-on-year decrease of approximately 0.22 percentage point. Coal-fired generating units achieved total desulphurisation facilities operation rate and total overall desulphurisation efficiency rate of approximately 99.34% and 93.74% respectively. The aggregate emission performance of sulphur dioxide, smoke ash, nitrogen oxides and waste water decreased by approximately 1.55%, 15.54%, 7.86% and 27.32% year-on-year to approximately 0.382g/kWh, 0.106g/kWh, 1.279g/kWh and 0.046kg/kWh, respectively. The emission performance of various pollutants reached a national top class level.

During the Review Period, preliminary works on projects of the Group proceeded steadfastly, with three power projects being approved by the State, including gas turbine, hydropower and wind power projects with approved total capacities of 1,380MW, 125MW and 48MW respectively.

Meanwhile, the Group continued to push ahead its expansion in power-related upstream and downstream projects. For the coal chemical business, the Duolun Coal Chemical Project underwent trial production since 16 March 2012. As at the end of the reporting period, various chemical systems in the chemical industry zone commenced production successively. Currently, the entire system has been put into continuous operation and reached a loading rate over 70% after a one-month major system maintenance during the Period. The milestone planned schedule for the public works, power engineering and slag disposal pit of the Keqi Coal-based Natural Gas Project was completed. Currently, the construction of Series 1 of Phase 1 of the project has gone through all the technological processes and produced qualified natural gas. The installation of the air-cooling and gasification framework structure for the Fuxin Coal-based Natural Gas Project was completed and the project construction is being stepped up, with the objective to commence production in 2013. The High-Aluminium Pulverised Fuel Ash Project of Inner Mongolia Renewable Energy Resource Development Company Limited also proceeded smoothly. Currently, a long-cycle, continuous and stable operation for renewable resources alumina was achieved.

The Group also continued to push ahead its coal business. Among which, the annual production scale of Phase 1 project of the Shengli Open-cut Coal Mine East Unit 2 reached 10 million tonnes. Phase 2 project, with an annual production scale of 20 million tonnes, was the first largest single open-pit coal mine in China to receive approval and was currently scheduled to undergo infrastructure construction. Meanwhile, the Group is carrying out preliminary development works on the Wujianfang Coal Mine, the Kongduigou Coal Mine and the Changtan Coal Mine. The successful development of such coal mine projects would increase the self-sufficiency ratio of coal consumption of the Company's power plants.

Outlook

Looking forward to the second half of 2012, the Group expected that substantial downside risks of the global economy will remain. There will be overcapacity in some domestic sectors and increasingly prominent conflicts between the lack of energy resources and a fragile ecological environment. However, following the launch of the economic stimulus policies, the coal market has picked up gradually, and the fall in coal price is narrowing gradually. This will continue to be a key factor in restricting electricity production and supply as well as corporate performance. Meanwhile, the State has adjusted the energy structure by devoting more efforts to the promotion of clean and renewable energy development, which has imposed more stringent requirements on the development of new projects of the Company.

Mr. Cao concluded, "Faced with such complex and volatile situations, Datang Power will continue to adhere to the strategy of 'focusing on the power generation business whilst complementing with synergistic diversifications', and to reinforce the management of production safety, strengthen capital management, step up the efforts in the development of business resources, actively push forward capital operation, continuously intensify energy saving and emissions reduction, comprehensively strengthen risk prevention and control, and take proactive initiatives to cope with market changes with a committed focus on profitability to ensure that the business objectives for the whole year will be accomplished as planned, thereby generating maximum returns for the shareholders."

Datang International Power Generation Co., Ltd. (991:HK; 601991:SH; DAT:LN; DIPGY:US)

Datang International Power Generation Co., Ltd. is one of the largest independent power producers in China and the first Chinese power company listed in Hong Kong, London and Shanghai simultaneously. Its American Depositary Receipts are traded in the U.S. over-the-counter market. The Company is principally engaged in the construction and operation of power plants, the sale of electricity and thermal power, the repair, testing and maintenance of power generating facilities and power-related technology services. Currently, the Company manages over 100 wholly-owned and holding power generation companies or other project companies, which are located across 18 provinces (including municipalities and autonomous regions) in China. As at 30 June 2012, the Group's total installed capacity in operation amounted to 38,865MW.

For more information, please visit the Company's website: http://www.dtpower.com/.

For the Extract of Condensed Consolidated Statement of Comprehensive Income (unaudited), please visit: http://www.prnasia.com/sa/attachment/2012/08/20120821151723382168.pdf

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SOURCE Datang International Power Generation Co., Ltd.