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

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Jul 29, 2014, 10:56 ET

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: [email protected]

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: [email protected] / [email protected] / [email protected] / [email protected]


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.