2
|
Interim Results
|
2
|
Business Review for the First Half of the Year
|
3
|
Prospects for the Second Half of 2013
|
3
|
Management’s Discussion and Analysis (Prepared Under IFRS)
|
12
|
Share Capital Structure
|
12
|
Purchase, Sale or Redemption of Shares
|
12
|
Major Shareholding Structure
|
13
|
Material Interests and Short Positions in Shares and Underlying Shares of the Company
|
13
|
Directors’ and Supervisors’ Right to Purchase Shares
|
14
|
Public Float
|
14
|
Dividends
|
14
|
Disclosure of Major Events
|
14
|
Corporate Governance
|
20
|
Review by the Audit Committee
|
21
|
Legal Proceedings
|
21
|
Documents for Inspection
|
Prepared in accordance with International Financial Reporting Standards
|
22
|
Condensed Consolidated Interim Balance Sheet (Unaudited)
|
24
|
Condensed Consolidated Interim Statement of Comprehensive Income (Unaudited)
|
26
|
Condensed Consolidated Interim Statement of Changes in Equity (Unaudited)
|
28
|
Condensed Consolidated Interim Statement of Cash Flows (Unaudited)
|
28
|
Notes to the Unaudited Condensed Consolidated Interim Financial Information
|
1.
|
POWER GENERATION
|
2.
|
COST CONTROL
|
3.
|
ENERGY CONSERVATION AND ENVIRONMENTAL PROTECTION
|
4.
|
PROJECT DEVELOPMENT AND CONSTRUCTION
|
I.
|
COMPARISON AND ANALYSIS OF OPERATING RESULTS
|
|
1.
|
The growth of electricity output of the Company was affected by the slowdown of the national economy which led to the growth of the nationwide and society-wide electricity consumption lower than that anticipated at the beginning of the year.
|
|
2.
|
As a result of the distribution of installed generation capacity of the Company, the growth rate of power output of the regions where the power plants of the Company are located was relatively low during the first half of the year and certain regions even recorded negative growth. At the same time, hydropower recorded a big growth in certain provinces and the electricity output of local thermal generating units decreased substantially.
|
|
3.
|
The average growth rate of installed capacity of the Company was below the nationwide average level during the first half of the year.
|
|
4.
|
According to the national energy saving and emission reduction requirements, the Company arranged denitrification transformation for a greater number of generating units during the first half of the year and it has affected the Company’s power generation growth to a certain extent.
|
Domestic Power Plant
|
Power Generation for the first half year of 2013
|
Power Generation for the first half year of 2012
|
Change
|
Electricity sold for the first half year of 2013
|
Electricity
sold for the first half year of 2012
|
Change
|
||||||||||||||||||
Liaoning Province
|
||||||||||||||||||||||||
Dalian
|
3.009 | 2.961 | 1.62 | % | 2.863 | 2.819 | 1.56 | % | ||||||||||||||||
Dandong
|
1.568 | 1.602 | -2.12 | % | 1.495 | 1.527 | -2.10 | % | ||||||||||||||||
Yingkou
|
3.803 | 4.163 | -8.65 | % | 3.567 | 3.900 | -8.54 | % | ||||||||||||||||
Yingkou Co-generation
|
1.587 | 1.777 | -10.69 | % | 1.486 | 1.666 | -10.80 | % | ||||||||||||||||
Wafangdian Wind Power
|
0.063 | 0.055 | 14.55 | % | 0.061 | 0.054 | 12.96 | % | ||||||||||||||||
Suzi River Hydropower
|
0.008 | 0.001 | 700.00 | % | 0.008 | 0.001 | 700.00 | % | ||||||||||||||||
Changtu Wind Power
|
0.048 | – | – | 0.048 | – | – | ||||||||||||||||||
Inner Mongolia
|
||||||||||||||||||||||||
Huade Wind Power
|
0.116 | 0.110 | 5.45 | % | 0.115 | 0.109 | 5.50 | % | ||||||||||||||||
Hebei Province
|
||||||||||||||||||||||||
Shang’an
|
6.726 | 7.345 | -8.43 | % | 6.324 | 6.834 | -7.46 | % | ||||||||||||||||
Kangbao Wind Power
|
0.039 | 0.028 | 39.29 | % | 0.036 | 0.027 | 33.33 | % | ||||||||||||||||
Gansu Province
|
||||||||||||||||||||||||
Pingliang
|
5.031 | 5.249 | -4.15 | % | 4.812 | 4.960 | -2.98 | % | ||||||||||||||||
Jiuquan Wind Power
|
0.417 | 0.392 | 6.38 | % | 0.413 | 0.382 | 8.12 | % | ||||||||||||||||
Beijing
|
||||||||||||||||||||||||
Beijing Co-generation (Coal-fired)
|
2.412 | 2.371 | 1.73 | % | 2.131 | 2.082 | 2.35 | % | ||||||||||||||||
Beijing Co-generation (Combined Cycle)
|
2.253 | 1.450 | 55.38 | % | 2.198 | 1.412 | 55.67 | % |
Tianjin
|
||||||||||||||||||||||||
Yangliuqing Co-generation
|
3.591 | 3.404 | 5.49 | % | 3.353 | 3.163 | 6.01 | % | ||||||||||||||||
Shanxi Province
|
||||||||||||||||||||||||
Yushe
|
1.434 | 1.995 | -28.12 | % | 1.326 | 1.842 | -28.01 | % | ||||||||||||||||
Zuoquan
|
3.306 | 2.791 | 18.45 | % | 3.104 | 2.617 | 18.61 | % | ||||||||||||||||
Shandong Province
|
||||||||||||||||||||||||
Dezhou
|
7.182 | 7.649 | -6.11 | % | 6.743 | 7.183 | -6.13 | % | ||||||||||||||||
Jining
|
2.446 | 2.490 | -1.77 | % | 2.272 | 2.310 | -1.65 | % | ||||||||||||||||
Xindian
|
1.578 | 1.822 | -13.39 | % | 1.473 | 1.709 | -13.81 | % | ||||||||||||||||
Weihai
|
4.997 | 5.139 | -2.76 | % | 4.756 | 4.889 | -2.72 | % | ||||||||||||||||
Rizhao Phase II
|
3.298 | 4.037 | -18.31 | % | 3.131 | 3.824 | -18.12 | % | ||||||||||||||||
Zhanhua Co-generation
|
0.783 | 0.898 | -12.81 | % | 0.722 | 0.819 | -11.84 | % | ||||||||||||||||
Henan Province
|
||||||||||||||||||||||||
Qinbei
|
9.806 | 8.195 | 19.66 | % | 9.265 | 7.731 | 19.84 | % | ||||||||||||||||
Jiangsu Province
|
||||||||||||||||||||||||
Nantong
|
4.036 | 4.510 | -10.51 | % | 3.850 | 4.309 | -10.65 | % | ||||||||||||||||
Nanjing
|
1.698 | 1.922 | -11.65 | % | 1.609 | 1.814 | -11.30 | % | ||||||||||||||||
Taicang
|
5.340 | 6.100 | -12.46 | % | 5.086 | 5.810 | -12.46 | % | ||||||||||||||||
Huaiyin
|
3.457 | 3.647 | -5.21 | % | 3.251 | 3.438 | -5.44 | % | ||||||||||||||||
Jinling (Combined-cycle)
|
1.053 | 1.995 | -47.22 | % | 1.030 | 1.951 | -47.21 | % | ||||||||||||||||
Jinling (Coal-fired)
|
6.242 | 5.347 | 16.74 | % | 5.956 | 5.096 | 16.88 | % | ||||||||||||||||
Qidong Wind Power
|
0.179 | 0.162 | 10.49 | % | 0.175 | 0.158 | 10.76 | % |
Domestic Power Plant
|
Power Generation for the first half year of 2013
|
Power Generation for the first half year of 2012
|
Change
|
Electricity sold for the first half year of 2013
|
Electricity sold for the first half year of 2012
|
Change
|
||||||||||||||||||
Shanghai
|
||||||||||||||||||||||||
Shidongkou First
|
3.873 | 3.985 | -2.81 | % | 3.655 | 3.769 | -3.02 | % | ||||||||||||||||
Shidongkou Second
|
3.317 | 3.414 | -2.84 | % | 3.190 | 3.283 | -2.83 | % | ||||||||||||||||
Shanghai Combined-cycle
|
0.793 | 0.528 | 50.19 | % | 0.775 | 0.515 | 50.49 | % |
Shidongkou Power
|
4.053 | 3.743 | 8.28 | % | 3.873 | 3.561 | 8.76 | % | ||||||||||||||||
Chongqing
|
||||||||||||||||||||||||
Luohuang
|
6.735 | 5.875 | 14.64 | % | 6.223 | 5.437 | 14.46 | % | ||||||||||||||||
Zhejiang Province
|
||||||||||||||||||||||||
Yuhuan
|
12.082 | 11.470 | 5.34 | % | 11.509 | 10.913 | 5.46 | % | ||||||||||||||||
Hubei Province
|
||||||||||||||||||||||||
Enshi Maweigou Hydropower
|
0.024 | 0.027 | -11.11 | % | 0.023 | 0.026 | -11.54 | % | ||||||||||||||||
Hunan Province
|
||||||||||||||||||||||||
Yueyang
|
3.745 | 3.804 | -1.55 | % | 3.502 | 3.553 | -1.44 | % | ||||||||||||||||
Xiangqi Hydropower
|
0.174 | 0.052 | 234.62 | % | 0.171 | 0.052 | 228.85 | % | ||||||||||||||||
Jiangxi Province
|
||||||||||||||||||||||||
Jinggangshan
|
4.023 | 4.103 | -1.95 | % | 3.844 | 3.908 | -1.64 | % | ||||||||||||||||
Fujian Province
|
||||||||||||||||||||||||
Fuzhou
|
5.739 | 5.713 | 0.46 | % | 5.457 | 5.412 | 0.83 | % | ||||||||||||||||
Guangdong Province
|
||||||||||||||||||||||||
Shantou Coal-fired
|
2.526 | 3.081 | -18.01 | % | 2.393 | 2.920 | -18.05 | % | ||||||||||||||||
Haimen
|
7.740 | 6.414 | 20.67 | % | 7.401 | 6.132 | 20.69 | % | ||||||||||||||||
Yunnan Province
|
||||||||||||||||||||||||
Diandong Energy
|
4.711 | 5.392 | -12.63 | % | 4.355 | 4.982 | -12.59 | % | ||||||||||||||||
Yuwang Energy
|
2.442 | 2.965 | -17.64 | % | 2.238 | 2.738 | -18.26 | % | ||||||||||||||||
Total
|
149.483 | 150.173 | -0.46 | % | 141.268 | 141.637 | -0.26 | % |
|
1.
|
Operating revenue and tax and levies on operations
|
|
2.
|
Operating expenses
|
|
2.1
|
Fuel costs
|
|
2.2
|
Depreciation
|
|
2.3
|
Labor
|
|
2.4
|
Maintenance
|
|
2.5
|
Other operating expenses (including purchase of electricity and service fees on transmission and transformer facilities of HIPDC)
|
|
3.
|
Financial expenses
|
|
4.
|
Share of profit of associates/jointly controlled entities
|
|
5.
|
Income tax expenses
|
|
6.
|
Net profit attributable to equity holders of the Company
|
|
7.
|
Comparison of financial positions
|
|
8.
|
Major financial position ratios
|
Ratio of liabilities and shareholders’ equity
|
=
|
balance of liabilities as at period end
balance of shareholders’ equity
(excluding non-controlling interests) as at period end
|
||
Current ratio
|
=
|
balance of current assets as at period end
balance of current liabilities as at period end
|
||
Quick ratio
|
=
|
(balance of current assets as at period end
– net amounts of inventories as at period end)
balance of current liabilities as at period end
|
||
Multiples of interest earned
|
=
|
(profit before income tax expense + interest expenses)
interest expenditure (including capitalized interest)
|
The Company and its subsidiaries
|
||||||||
As at
|
As at
|
|||||||
Item
|
30 June 2013
|
31 December 2012
|
||||||
Ratio of liabilities and shareholders’ equity
|
3.35 | 3.44 | ||||||
Current ratio
|
0.41 | 0.39 | ||||||
Quick ratio
|
0.34 | 0.31 | ||||||
For the
|
For the
|
|||||||
six months ended
|
six months ended
|
|||||||
Item
|
30 June 2013
|
30 June 2012
|
||||||
Multiples of interest earned
|
3.12 | 1.63 |
II.
|
LIQUIDITY AND CASH RESOURCES
|
|
1.
|
Liquidity
|
For the six months ended 30 June 2013
(RMB in billion)
|
For the six months ended 30 June 2012
(RMB in billion)
|
Change
(%)
|
||||||||||
Net cash provided by operating activities
|
20.580 | 12.755 | 61.35 | |||||||||
Net cash used in investing activities
|
(7.239 | ) | (7.018 | ) | 3.16 | |||||||
Net cash used in financing activities
|
(8.111 | ) | (0.971 | ) | 735.70 | |||||||
Effect of exchange rate fluctuations on cash held
|
(0.114 | ) | 0.075 | (253.53 | ) | |||||||
Net increase in cash and cash equivalents
|
5.116 | 4.841 | 5.68 | |||||||||
Cash and cash equivalents as at the beginning of the period
|
10.505 | 8.553 | 22.83 | |||||||||
Cash and cash equivalents as at the end of the period
|
15.621 | 13.394 | 16.63 | |||||||||
|
2.
|
Capital expenditure and cash resources
|
|
2.1
|
Capital expenditure for construction and renovation projects
|
|
2.2
|
Cash resources and anticipated financing costs
|
|
2.3
|
Other financing requirements
|
III.
|
PERFORMANCE AND PROSPECTS OF SIGNIFICANT INVESTMENTS
|
IV.
|
EMPLOYEE BENEFITS POLICIES
|
V.
|
GUARANTEES AND PLEDGES ON LOANS AND RESTRICTED ASSETS
|
|
1.
|
The Company pledged certain accounts receivable for certain short-term loans borrowed in the first half of 2013. As at 30 June 2013, the balance of the secured loans was RMB5.420 billion, and the pledged accounts receivable were approximately RMB5.749 billion.
|
|
2.
|
As at 30 June 2013, a short-term loan of RMB50 million was secured by certain future revenue to be generated of a subsidiary.
|
|
3.
|
As at 30 June 2013, a long-term loan of RMB95 million of the Company and its subsidiaries was secured by territorial waters use right with net book value of RMB83.41 million.
|
|
4.
|
As at 30 June 2013, a long-term loan of RMB149 million of the Company and its subsidiaries was secured by certain property, plant and equipment with net book value amounting to RMB209 million.
|
|
5.
|
As at 30 June 2013, a long-term loan of approximately RMB12.103 billion of the Company and its subsidiaries was secured by future electricity revenue.
|
|
6.
|
As at 30 June 2013, a long-term loan of approximately RMB15.22 million of a subsidiary of the Company was secured by the current and future assets of the subsidiary.
|
VI.
|
CONTINGENT LIABILITY
|
VII.
|
RISK FACTORS
|
Name of Shareholders
|
Total Shareholdings
|
Percentage of shareholding in total issued shares (%)
|
||||||
Huaneng International Power Development Corporation
|
5,066,662,118 | 36.05 | ||||||
HKSCC Nominees Limited1
|
2,836,735,657 | 20.18 | ||||||
China Huaneng Group
|
1,561,371,213 | 11.11 | ||||||
Hebei Construction & Investment Group Co., Ltd
|
603,000,000 | 4.29 | ||||||
China Hua Neng Group Hong Kong Limited
|
472,000,000 | 3.36 | ||||||
Liaoning Energy Investment (Group) Limited Liability Company
|
422,679,939 | 3.01 | ||||||
Jiangsu Provincial Investment & Management Limited Liability Company
|
416,500,000 | 2.96 | ||||||
Fujian Investment Development (Group) Co., Ltd.
|
374,467,500 | 2.66 | ||||||
Dalian Municipal Construction Investment Company Limited
|
301,500,000 | 2.15 | ||||||
HSBC Nominees (Hong Kong) Limited2
|
227,389,040 | 1.62 |
1.
|
HKSCC Nominees Limited acts as nominee of holders of H shares of the Company and its shareholdings in the Company represent the total number of H shares held by it as nominees of H shareholders.
|
2.
|
HSBC Nominees (Hong Kong) Limited acts as nominee of holders of the underlying shares of the Company’s ADR while its shareholdings in the Company represent the total number of the underlying shares of the Company’s ADR held by it as nominee of ADR holders.
|
Name of substantial shareholder
|
Class of shares
|
Number of shares held (shares)
|
Capacity
|
Type of interest
|
Percentage in the relevant class share capital
|
Percentage in total of share capital
|
||||||||||
HIPDC (1)
|
Domestic Shares
|
5,066,662,118(L) |
Beneficial owner
|
Corporate
|
48.25% (L) | 36.05% (L) | ||||||||||
Huaneng Group
|
Domestic Shares
|
1,672,769,384(L) (2) |
Beneficial owner
|
Corporate
|
15.93% (L) | 11.90% (L) | ||||||||||
H Shares
|
472,000,000(L) (3) |
Beneficial owner
|
Corporate
|
4.49% (L) | 3.36% (L) | |||||||||||
Hebei Construction & Investment Group Co., Ltd
|
Domestic Shares
|
603,000,000(L) |
Beneficial owner
|
Corporate
|
5.74% (L) | 4.29% (L) | ||||||||||
BlackRock, Inc.
|
H Shares
|
212,078,901(L) |
Interest of controlled corporation
|
Corporate
|
5.96% (L) | 1.50% (L) | ||||||||||
11,070,000(S) |
Interest of controlled corporation
|
Corporate
|
0.31% (S) | 0.078% (S) | ||||||||||||
UBS
|
H Shares
|
30,264,489(L) |
Beneficial owner
|
Corporate
|
0.85% (L) | 0.21% (L) | ||||||||||
2,840,032(S) |
Beneficial owner
|
Corporate
|
0.07% (S) | 0.02% (S) | ||||||||||||
143,914,400 (L)
|
Person having a security interest in share
|
Corporate
|
4.04% (L) | 1.02 % (L) | ||||||||||||
12,461,479 (L)
|
Interest of controlled corporation
|
Corporate
|
0.35% (L) | 0.08 % (L) | ||||||||||||
5,202,000 (S)
|
Interest of controlled corporation
|
Corporate
|
0.14% (S) | 0.03 % (S) |
1.
|
As at 30 June 2013, Huaneng Group holds 51.98% equity interest in HIPDC.
|
2.
|
Huangeng Group through its wholly owned subsidiary, Huaneng Capital Services Company Limited, held 6,246,664 domestic shares. Huaneng Group through its controlling subsidiary, China Huaneng Finance Corporation Limited, held 111,398,171 domestic shares.
|
3.
|
472,000,000 H Shares were held by Huaneng Group through its wholly owned subsidiary, China Hua Neng Group Hong Kong Limited.
|
(A)
|
CODE OF CORPORATE GOVERNANCE
|
|
(1)
|
Enhancing and improving corporate governance
|
|
(2)
|
Enhancing and improving the information disclosure system
|
|
(3)
|
Regulating financial management system, strengthening internal control
|
|
1.
|
In order to strictly implement the accounting rules, accounting standards and accounting systems, to strengthen accounting and accounts supervision, and to truthfully and fairly reflect the financial position, operating results and cash flow, the Company has compiled the Measures on Accounting, the Measures on Construction Accounting, the Measures on Fixed Assets Management, Lists of Fixed Assets and the Measures on Cost Management. The Company’s Board, the Supervisory Committee and the Audit Committee have examined the Company’s financial reports on a regular basis and the Company has fulfilled the requirements of making the Chairman, the President and the Chief Accountant responsible for the truthfulness and completeness of the financial reports.
|
|
2.
|
In order to safeguard the independence of the listed company, the Company maintained the separation of personnel in organizational structure and specifically established the relevant institutions responsible for the entrusted business so that the Company may realize the complete separation of the listed company and the controlling shareholder in terms of personnel, assets and finances according to the laws and regulations of the State and the requirements of regulatory rules.
|
|
3.
|
Since 2003, the Company has initiated internal control system construction work in order to establish a sound internal control system for the Company, to achieve an efficient operating effect for ensuring the reliability of financial reports, and to effectively enhance the capability of risk prevention. For the past ten years, the Company has established an internal control system construction strategic plan and highlighted the targets for internal control system construction. By promoting the internal control, the Company’s development capability, competitive edges and risk resistance ability have been further enhanced. The Company has realized its strategic targets, established a system for internal control and reinforced the work requirements for internal control systems for the corporate level, the regional branch level and the unit level. Having reference to the internal control regulations by the relevant domestic and international regulatory requirements, the Company has established an internal control procedure that was consistent with the management features of the Company, and has designed and promulgated the internal control handbook which was identified as having the highest authority to govern the Company’s internal management issues. The Company has insisted on organizing various self-assessments on internal control every year, discovering control deficiencies and implementing rectifications in time. The Company also held all-rounded internal publicity and training on the philosophy and knowledge for internal control.
|
|
|
After due assessment, the management of the Company has considered that the internal control system of the Company was sound and the implementation of which was effective.
|
|
|
The Company was among the first batch of US listed PRC enterprises which had satisfied the requirement on internal control in the financial reports under section 404 of the Sarbanes – Oxley Act. Since 2011, as a domestic and international listed company, the Company has smoothly passed the dual standards for past two years on internal controls by the fundamental governing rules on enterprise internal controls and their ancillary guidances and section 404 of the Sarbanes – Oxley Act. So far, the external auditors had issued the auditor’s report on the Company’s internal control for seven successive years without any qualification opinion. The Company has been implementating the internal control work standardization for establishing a long-term internal control system.
|
|
4.
|
In regard to fund management, the Company has formulated a number of management measures including the Measures on Financial Management, the Measures on the Management of the Income and Expenditure of the Funds, the Measures on the Assessment of Management of Receipt and Payment of Funds, the Measures on the Management of Bills of Exchange, the Measures on Management of Fund Raising, Rules on the Management of Transactions Involving Financial Derivatives, the Measures on the Management of Provision of Security to Third Parties and the Measures for Regulating Fund Transfers with the Related Parties. The Company’s Articles of Association also set out provisions relating to loans, guarantees and investment. In the annual reports of the Company over the previous years, the Company has engaged certified accountants to conduct auditing on the use of funds by the controlling shareholders and other related parties, and issue specific statements according to the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange for confirmation that there has not been any violation of rules relating to the use of funds. Moreover, the Company also conducted checking and clearing with related parties on a quarterly basis in relation to the operational fund transfers in order to ensure the safety of funds. At the same time, the Company has reported the fund use position each quarter to the Beijing Securities Regulatory Bureau and urged itself to comply with the relevant requirements at any time.
|
(B)
|
SECURITIES TRANSACTIONS BY DIRECTORS
|
(C)
|
BOARD OF DIRECTORS
|
|
Number of
|
Number of
|
||||||
Number of
|
meetings
|
meetings
|
Rate of
|
|||||
meetings to
|
attended
|
attended
|
Attendance
|
|||||
Name
|
be attended
|
in person
|
by proxy
|
(%)
|
||||
Executive Directors
|
||||||||
Cao Peixi
|
4
|
4
|
0
|
100%
|
||||
Liu Guoyue
|
4
|
4
|
0
|
100%
|
||||
Fan Xiaxia
|
4
|
4
|
0
|
100%
|
||||
Non-executive Directors
|
||||||||
Huang Long
|
4
|
4
|
0
|
100%
|
||||
Li Shiqi
|
4
|
4
|
0
|
100%
|
||||
Huang Jian
|
4
|
4
|
0
|
100%
|
||||
Shan Qunying
|
4
|
4
|
0
|
100%
|
||||
Guo Hongbo
|
4
|
4
|
0
|
100%
|
||||
Xu Zujian
|
4
|
4
|
0
|
100%
|
||||
Xie Rongxing
|
4
|
4
|
0
|
100%
|
||||
Independent Non-executive
|
||||||||
Directors
|
||||||||
Shao Shiwei
|
4
|
3
|
1
|
75%
|
||||
|
|
|
(Attendance by
|
|||||
|
|
|
proxy rate: 25%)
|
|||||
Wu Liansheng
|
4
|
4
|
0
|
100%
|
||||
Li Zhensheng
|
4
|
3
|
1
|
75%
|
||||
|
|
|
(Attendance by
|
|||||
|
|
|
|
proxy rate: 25%)
|
||||
Qi Yudong
|
4
|
4
|
0
|
100%
|
||||
Zhang Shouwen
|
4
|
3
|
1
|
75%
|
||||
|
|
|
(Attendance by
|
|||||
|
|
|
proxy rate: 25%)
|
(D)
|
CHAIRMAN AND PRESIDENT
|
(E)
|
NON-EXECUTIVE DIRECTORS
|
Name of Non-executive Directors
|
Term of office
|
|
Huang Long
|
17 May 2011–May 2014
|
|
Li Shiqi
|
17 May 2011–May 2014
|
|
Huang Jian
|
17 May 2011–May 2014
|
|
Shan Qunying
|
17 May 2011–May 2014
|
|
Guo Hongbo
|
21 February 2012–May 2014
|
|
Xu Zujian
|
17 May 2011–May 2014
|
|
Xie Rongxing
|
12 June 2012–May 2014
|
(F)
|
DIRECTORS’ REMUNERATION
|
Name of meeting
|
Date of meeting
|
Members who attended the meeting in person
|
Members who attended the meeting by proxy
|
|||
First meeting of the Remuneration and Appraisal Committee of the Seventh Session of the Board in 2013
|
18 March 2013
|
Qi Yudong, Liu Guoyue, Guo Hongbo, Xu Zujian, Wu Liansheng
|
Shao Shiwei, Li Zhensheng
|
(G)
|
NOMINATION OF DIRECTORS
|
(H)
|
APPOINTMENT OF AUDITORS
|
(I)
|
AUDIT COMMITTEE
|
|
(1)
|
the accuracy of the Company’s financial statement;
|
|
(2)
|
the Company’s compliance with laws and regulations;
|
|
(3)
|
the qualification and independence of the Company’s independent auditors;
|
|
(4)
|
the performance of the Company’s independent auditors and internal auditing departments of the Company; and
|
|
(5)
|
the control and management of the related party transactions of the Company.
|
Name of meeting | Date of meeting | Members who attended the meeting in person | Members who attended the meeting by proxy | |||
First meeting of the Audit Committee of the Seventh Session in 2013
|
22 February 2013
|
Wu Liansheng, Shao Shiwei, Li Zhensheng, Qi Yudong, Zhang Shouwen
|
–
|
|||
Second meeting of the Audit Committee of the Seventh Session in 2013
|
18 March 2013
|
Wu Liansheng, Qi Yudong, Zhang Shouwen
|
Shao Shiwei, Li Zhensheng
|
|||
Third meeting of the Audit Committee of the Seventh Session in 2013
|
22 April 2013
|
Wu Liansheng, Shao Shiwei, Li Zhensheng, Qi Yudong, Zhang Shouwen
|
–
|
(J)
|
RESPONSIBILITY STATEMENT BY THE DIRECTORS IN RELATION TO THE FINANCIAL STATEMENTS
|
(K)
|
SHARES HELD BY SENIOR MANAGEMENT
|
(L)
|
STRATEGY COMMITTEE
|
|
(1)
|
reviewing and advising on the Company’s long-term strategic development plan;
|
|
(2)
|
reviewing and advising on the major fund raising proposals that need to be approved by the Board;
|
|
(3)
|
reviewing and advising on the major production and operating projects that need to be approved by the Board;
|
|
(4)
|
studying and advising on the matters that would significantly affect the development of the Company;
|
|
(5)
|
examining the implementation of the above-mentioned matters; and
|
|
(6)
|
attending those matters at the request of the Board.
|
(M)
|
DIRECTORS’ TRAINING
|
PRC
|
Huaneng Power International, Inc.
|
|
Huaneng Building
|
||
6 Fuxingmennei Street
|
||
Xicheng District
|
||
Beijing
|
||
The People’s Republic of China
|
Telephone Number: (8610) 6322 6999
|
||
Fax Number: (8610) 6641 2321
|
||
Hong Kong
|
Wonderful Sky Financial Group Limited
|
|
Unit 3102-05, 31/F., Office Tower,
|
||
Convention Plaza, 1 Harbour Road,
|
||
Wanchai, Hong Kong
|
||
Tel: (852) 2851 1038
|
||
Fax: (852) 2865 1638
|
||
Websites of the Company
|
http://www.hpi.com.cn;
|
|
http://www.hpi-ir.com.hk
|
By Order of the Board
|
|
Cao Peixi
|
|
Chairman
|
Cao Peixi (Executive Director)
|
Shao Shiwei (Independent Non-executive Director)
|
|
Huang Long (Non-executive Director)
|
Wu Liansheng (Independent Non-executive Director)
|
|
Li Shiqi (Non-executive Director)
|
Li Zhensheng (Independent Non-executive Director)
|
|
Huang Jian (Non-executive Director)
|
Qi Yudong (Independent Non-executive Director)
|
|
Liu Guoyue (Executive Director)
|
Zhang Shouwen (Independent Non-executive Director)
|
|
Fan Xiaxia (Executive Director)
|
||
Shan Qunying (Non-executive Director)
|
||
Guo Hongbo (Non-executive Director)
|
||
Xu Zujian (Non-executive Director)
|
||
Xie Rongxing (Non-executive Director)
|
As at 30
|
As at 31
|
|||||||||||
Note
|
June 2013
|
December 2012
|
||||||||||
ASSETS
|
||||||||||||
Non-current assets
|
||||||||||||
Property, plant and equipment
|
5 | 176,422,192 | 177,013,627 | |||||||||
Investments in associates/jointly controlled entities
|
16,218,984 | 14,596,771 | ||||||||||
Available-for-sale financial assets
|
3,265,700 | 3,052,822 | ||||||||||
Land use rights
|
4,354,293 | 4,297,183 | ||||||||||
Power generation licence
|
3,887,294 | 4,084,506 | ||||||||||
Mining rights
|
1,922,655 | 1,922,655 | ||||||||||
Deferred income tax assets
|
454,829 | 532,387 | ||||||||||
Derivative financial assets
|
6 | 9,777 | 13,723 | |||||||||
Goodwill
|
7 | 13,870,400 | 14,417,543 | |||||||||
Other non-current assets
|
8 | 2,892,826 | 3,082,894 | |||||||||
Total non-current assets
|
223,298,950 | 223,014,111 | ||||||||||
Current assets
|
||||||||||||
Inventories
|
6,544,903 | 7,022,384 | ||||||||||
Other receivables and assets
|
9 | 3,229,417 | 2,990,395 | |||||||||
Accounts receivable
|
10 | 13,689,339 | 15,299,964 | |||||||||
Trading securities
|
6 | – | 93,753 | |||||||||
Derivative financial assets
|
6 | 49,453 | 55,268 | |||||||||
Bank balances and cash
|
22 | 15,702,540 | 10,624,497 | |||||||||
Total current assets
|
39,215,652 | 36,086,261 | ||||||||||
Total assets
|
262,514,602 | 259,100,372 | ||||||||||
As at 30
|
As at 31
|
|||||||||||
Note
|
June 2013
|
December 2012
|
EQUITY AND LIABILITIES
|
||||||||||||
Capital and reserves attributable to equity
|
||||||||||||
holders of the Company
|
||||||||||||
Share capital
|
14,055,383 | 14,055,383 | ||||||||||
Capital surplus
|
17,363,907 | 17,719,077 | ||||||||||
Surplus reserves
|
7,085,454 | 7,085,454 | ||||||||||
Currency translation differences
|
(664,307 | ) | (35,937 | ) | ||||||||
Retained earnings
|
||||||||||||
– Proposed dividend
|
– | 2,951,631 | ||||||||||
– Others
|
19,976,709 | 14,354,526 | ||||||||||
57,817,146 | 56,130,134 | |||||||||||
Non-controlling interests
|
11,094,431 | 9,830,208 | ||||||||||
Total equity
|
68,911,577 | 65,960,342 | ||||||||||
Non-current liabilities
|
||||||||||||
Long-term loans
|
12 | 68,413,203 | 72,564,824 | |||||||||
Long-term bonds
|
13 | 25,408,624 | 22,884,688 | |||||||||
Deferred income tax liabilities
|
1,966,932 | 2,011,729 | ||||||||||
Derivative financial liabilities
|
6 | 435,860 | 837,005 | |||||||||
Other non-current liabilities
|
14 | 1,201,236 | 1,247,464 | |||||||||
Total non-current liabilities
|
97,425,855 | 99,545,710 | ||||||||||
Current liabilities
|
||||||||||||
Accounts payable and other liabilities
|
15 | 22,548,564 | 19,992,901 | |||||||||
Taxes payable
|
1,542,048 | 1,275,430 | ||||||||||
Dividends payable
|
3,518,004 | 70,839 | ||||||||||
Salary and welfare payables
|
203,869 | 217,967 | ||||||||||
Derivative financial liabilities
|
6 | 71,140 | 88,641 | |||||||||
Short-term bonds
|
16 | 25,360,079 | 35,449,763 | |||||||||
Short-term loans
|
17 | 29,656,560 | 27,442,076 | |||||||||
Current portion of long-term loans
|
12 | 9,288,230 | 9,056,703 | |||||||||
Current portion of long-term bonds
|
13 | 3,988,676 | – | |||||||||
Total current liabilities
|
96,177,170 | 93,594,320 | ||||||||||
Total liabilities
|
193,603,025 | 193,140,030 | ||||||||||
Total equity and liabilities
|
262,514,602 | 259,100,372 |
For the six months
ended 30 June
|
||||||||||||
Note
|
2013
|
2012
|
||||||||||
Operating revenue
|
4 | 64,062,329 | 67,180,473 | |||||||||
Tax and levies on operations
|
(521,253 | ) | (318,556 | ) | ||||||||
Operating expenses
|
||||||||||||
Fuel
|
(35,677,117 | ) | (43,271,787 | ) | ||||||||
Maintenance
|
(1,433,270 | ) | (1,309,178 | ) | ||||||||
Depreciation
|
(5,605,718 | ) | (5,612,839 | ) | ||||||||
Labor
|
(2,409,750 | ) | (2,192,451 | ) | ||||||||
Service fees on transmission and
|
||||||||||||
transformer facilities of HIPDC
|
(70,386 | ) | (70,386 | ) | ||||||||
Purchase of electricity
|
(2,664,797 | ) | (3,823,905 | ) | ||||||||
Others
|
(3,364,720 | ) | (3,070,444 | ) | ||||||||
Total operating expenses
|
(51,225,758 | ) | (59,350,990 | ) | ||||||||
Profit from operations
|
12,315,318 | 7,510,927 | ||||||||||
Interest income
|
83,862 | 77,042 | ||||||||||
Financial expenses, net
|
||||||||||||
Interest expense
|
(3,948,892 | ) | (4,564,904 | ) | ||||||||
Exchange gain/(loss) and bank charges, net
|
85,959 | (51,308 | ) | |||||||||
Total financial expenses, net
|
(3,862,933 | ) | (4,616,212 | ) | ||||||||
Share of profits of associates/jointly controlled entities
|
319,493 | 290,666 | ||||||||||
Loss/(gain) on fair value changes of financial assets/liabilities
|
7,427 | (1,036 | ) | |||||||||
Other investment income
|
185,576 | 185,333 | ||||||||||
Profit before income tax expense
|
19 | 9,048,743 | 3,446,720 | |||||||||
Income tax expense
|
20 | (2,288,062 | ) | (994,643 | ) | |||||||
Net profit
|
6,760,681 | 2,452,077 | ||||||||||
For the six months
ended 30 June
|
||||||||||||
Note
|
2013 | 2012 | ||||||||||
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
|
9,659 | 35,809 | ||||||||||
Share of other comprehensive (loss)/income
|
||||||||||||
of investees accounted for under the equity method
|
(38,022 | ) | 13,357 | |||||||||
Effective portion of cash flow hedges
|
308,856 | (463,510 | ) | |||||||||
Translation differences of the financial
|
||||||||||||
statements of foreign operations
|
(629,007 | ) | 236,457 | |||||||||
Other comprehensive loss, net of tax
|
(348,514 | ) | (177,887 | ) | ||||||||
Total comprehensive income
|
6,412,167 | 2,274,190 | ||||||||||
Net profit attributable to:
|
||||||||||||
– Equity holders of the Company
|
5,622,740 | 2,121,963 | ||||||||||
– Non-controlling interests
|
1,137,941 | 330,114 | ||||||||||
6,760,681 | 2,452,077 | |||||||||||
Total comprehensive income attributable to:
|
||||||||||||
– Equity holders of the Company
|
5,274,863 | 1,943,512 | ||||||||||
– Non-controlling interests
|
1,137,304 | 330,678 | ||||||||||
6,412,167 | 2,274,190 | |||||||||||
Earnings per share attributable to the equity holders of the Company
|
||||||||||||
(expressed in RMB per share)
|
||||||||||||
– Basic and diluted
|
21 | 0.40 | 0.15 | |||||||||
Dividends paid
|
11 | – | – |
Attributable to equity holders of the Company
|
Non-controlling interests
|
Total equity
|
||||||||||||||||||||||||||||||||||||||||||||||
Share capital
|
Capital surplus
|
Surplus reserves
|
Currency translation differences
|
Retained earnings
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||
Share premium
|
Hedging reserve
|
Available-for-sale financial asset revaluation reserve
|
Other capital reserve
|
Subtotal
|
||||||||||||||||||||||||||||||||||||||||||||
Balance as at 1 January 2012
|
14,055,383 | 16,780,924 | (393,710 | ) | 358,398 | 1,070,883 | 17,816,495 | 7,013,849 | (570,973 | ) | 12,568,175 | 50,882,929 | 8,674,824 | 59,557,753 | ||||||||||||||||||||||||||||||||||
Profit for the six months ended 30 June 2012
|
– | – | – | – | – | – | – | – | 2,121,963 | 2,121,963 | 330,114 | 2,452,077 | ||||||||||||||||||||||||||||||||||||
Other comprehensive (loss)/income:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Fair value changes from available -for-sale financial asset, net of tax
|
– | – | – | 35,809 | – | 35,809 | – | – | – | 35,809 | – | 35,809 | ||||||||||||||||||||||||||||||||||||
Shares of other comprehensive income/(loss) of investees accounted for under the equity method, net of tax
|
– | – | – | 17,614 | (4,257 | ) | 13,357 | – | – | – | 13,357 | – | 13,357 | |||||||||||||||||||||||||||||||||||
Effective portion of cash flow hedges
|
– | – | (463,510 | ) | – | – | (463,510 | ) | – | – | – | (463,510 | ) | – | (463,510 | ) | ||||||||||||||||||||||||||||||||
Currency translation differences
|
– | – | – | – | – | – | – | 235,893 | – | 235,893 | 564 | 236,457 | ||||||||||||||||||||||||||||||||||||
Total comprehensive (loss)/income for the six months ended 30 June 2012
|
– | – | (463,510 | ) | 53,423 | (4,257 | ) | (414,344 | ) | – | 235,893 | 2,121,963 | 1,943,512 | 330,678 | 2,274,190 | |||||||||||||||||||||||||||||||||
Transfer to surplus reserve fund
|
– | – | – | – | – | – | 71,606 | – | (71,606 | ) | – | – | – | |||||||||||||||||||||||||||||||||||
Dividends relating to 2011
|
– | – | – | – | – | – | – | – | (702,867 | ) | (702,867 | ) | (274,200 | ) | (977,067 | ) | ||||||||||||||||||||||||||||||||
Capital injections from non-controlling interests of subsidiaries
|
– | – | – | – | – | – | – | – | – | – | 171,950 | 171,950 | ||||||||||||||||||||||||||||||||||||
Balance as at 30 June 2012
|
14,055,383 | 16,780,924 | (857,220 | ) | 411,821 | 1,066,626 | 17,402,151 | 7,085,455 | (335,080 | ) | 13,915,665 | 52,123,574 | 8,903,252 | 61,026,826 |
Attributable to equity holders of the Company
|
Non-controlling interests
|
Total equity
|
||||||||||||||||||||||||||||||||||||||||||||||
Share capital
|
Capital surplus
|
Surplus reserves
|
Currency translation differences
|
Retained earnings
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||
Share premium
|
Hedging reserve
|
Available-for-sale financial asset revaluation reserve
|
Other capital reserve
|
Subtotal
|
||||||||||||||||||||||||||||||||||||||||||||
Balance as at 1 January 2013
|
14,055,383 | 16,881,764 | (719,085 | ) | 492,976 | 1,063,422 | 17,719,077 | 7,085,454 | (35,937 | ) | 17,306,157 | 56,130,134 | 9,830,208 | 65,960,342 | ||||||||||||||||||||||||||||||||||
Profit for the six months ended 30 June 2013
|
– | – | – | – | – | – | – | – | 5,622,740 | 5,622,740 | 1,137,941 | 6,760,681 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss):
|
||||||||||||||||||||||||||||||||||||||||||||||||
Fair value changes from available-for-sale financial asset, net of tax
|
– | – | – | 9,659 | – | 9,659 | – | – | – | 9,659 | – | 9,659 | ||||||||||||||||||||||||||||||||||||
Share of other comprehensive loss of investees accounted for under the equity method, net of tax
|
– | – | – | (24,348 | ) | (13,674 | ) | (38,022 | ) | – | – | – | (38,022 | ) | – | (38,022 | ) | |||||||||||||||||||||||||||||||
Effective portion of cash flow hedges
|
– | – | 308,856 | – | – | 308,856 | – | – | – | 308,856 | – | 308,856 | ||||||||||||||||||||||||||||||||||||
Currency translation differences
|
– | – | – | – | – | – | – | (628,370 | ) | – | (628,370 | ) | (637 | ) | (629,007 | ) | ||||||||||||||||||||||||||||||||
Total comprehensive income/(loss) for the six months ended 30 June 2013
|
– | – | 308,856 | (14,689 | ) | (13,674 | ) | 280,493 | – | (628,370 | ) | 5,622,740 | 5,274,863 | 1,137,304 | 6,412,167 | |||||||||||||||||||||||||||||||||
Dividends relating to 2012 (Note 11)
|
– | – | – | – | – | – | – | – | (2,951,631 | ) | (2,951,631 | ) | (596,352 | ) | (3,547,983 | ) | ||||||||||||||||||||||||||||||||
Capital injections from non-controlling interests of subsidiaries
|
– | – | – | – | – | – | – | – | – | – | 612,068 | 612,068 | ||||||||||||||||||||||||||||||||||||
Acquisition of a subsidiary (Note 25)
|
– | – | – | – | – | – | – | – | – | – | 120,000 | 120,000 | ||||||||||||||||||||||||||||||||||||
Acquisition of non-controlling interests
|
– | – | – | – | – | – | – | – | (557 | ) | (557 | ) | (8,797 | ) | (9,354 | ) | ||||||||||||||||||||||||||||||||
Others*
|
– | (635,663 | ) | – | – | – | (635,663 | ) | – | – | – | (635,663 | ) | – | (635,663 | ) | ||||||||||||||||||||||||||||||||
Balance as at 30 June 2013
|
14,055,383 | 16,246,101 | (410,229 | ) | 478,287 | 1,049,748 | 17,363,907 | 7,085,454 | (664,307 | ) | 19,976,709 | 57,817,146 | 11,094,431 | 68,911,577 | ||||||||||||||||||||||||||||||||||
For the six months
ended 30 June
|
||||||||||
Note
|
2013
|
2012
|
||||||||
Net cash provided by operating activities
|
20,580,466 | 12,754,918 | ||||||||
Net cash used in investing activities
|
(7,239,143 | ) | (7,017,423 | ) | ||||||
Net cash used in financing activities
|
(8,110,592 | ) | (970,518 | ) | ||||||
Effect of exchange rate fluctuations on cash held
|
(114,712 | ) | 74,715 | |||||||
Net increase in cash and cash equivalents
|
5,116,019 | 4,841,692 | ||||||||
Cash and cash equivalents as at beginning of the period
|
10,505,387 | 8,552,782 | ||||||||
Cash and cash equivalents as at end of the period
|
22
|
15,621,406 | 13,394,474 | |||||||
1.
|
COMPANY ORGANIZATION AND PRINCIPAL ACTIVITIES
|
2.
|
BASIS OF PREPARATION
|
3.
|
PRINCIPAL ACCOUNTING POLICIES
|
|
‧
|
Amendments to IAS 1, ‘Presentation of financial statements – Presentation of item of other comprehensive income’ require entities to present the items of other comprehensive income that would be reclassified to profit or loss in the future if certain conditions are met separately from those that would never be reclassified to profit or loss. The Company and its subsidiaries’ presentation of other comprehensive income has been modified accordingly when the amendments are adopted for the first time. The Company and its subsidiaries adopt the amendments from 1 January 2013. These amendments have no material impact on the unaudited condensed consolidated interim financial information.
|
|
‧
|
IFRS 10, ‘Consolidated financial statements’ introduces a single control model to determine whether an investee should be consolidated, by focusing on whether the entity has power over the investee, exposure or rights to variable returns from its involvement with the investee and the ability to use its power to affect the amount of those returns.
|
|
As a result of the adoption of IFRS 10, the Company and its subsidiaries have changed their accounting policy with respect to determining whether they have control over an investee. The adoption does not change any of the control conclusions reached by the Company and its subsidiaries in respect of their involvement with other entities as at 1 January 2013.
|
|
‧
|
IFRS 11, ‘Joint arrangements’ divides joint arrangements into joint operations and joint ventures. Entities are required to determine the type of an arrangement by considering the structure, legal form, contractual terms and other facts and circumstances relevant to their rights and obligations under the arrangement. Joint arrangements which are classified as joint operations under IFRS 11 are recognised on a line-by-line basis to the extent of the joint operator’s interest in the joint operation. All other joint arrangements are classified as joint ventures under IFRS 11 and are required to be accounted for using the equity method in the Company and its subsidiaries’ consolidated financial statements. Proportionate consolidation is no longer allowed as an accounting policy choice.
|
|
As a result of the adoption of IFRS 11, the Company and its subsidiaries have changed their accounting policy with respect to their interests in joint arrangements and re-evaluated their involvement in their joint arrangements. The adoption of IFRS 11 does not have any material impact on the financial position and the financial result of the Company and its subsidiaries.
|
|
‧
|
IFRS 12 ‘Disclosures of interests in other entities’ brings together into a single standard all the disclosure requirements relevant to an entity’s interests in subsidiaries, joint arrangements, associates and unconsolidated structured entities. The disclosures required by IFRS 12 are generally more extensive than those previously required by the respective standards. Since those disclosure requirements only apply to a full set of financial statements, the Company and its subsidies has not made additional disclosures in the interim financial information as a result of adopting IFRS 12.
|
3.
|
PRINCIPAL ACCOUNTING POLICIES (Cont’d)
|
|
‧
|
IFRS 13 ‘Fair value measurement’ replaces existing guidance in individual IFRSs with a single source of fair value measurement guidance. IFRS 13 also contains extensive disclosure requirements about fair value measurements for both financial instruments and non-financial instruments. Some of the disclosures are specifically required for financial instruments in the interim financial reports. The Company and its subsidiaries has provided those disclosures in note 6. The adoption of IFRS 13 does not have any material impact on the fair value measurements of the Company and its subsidiaries’ assets and liabilities.
|
|
‧
|
Revised IAS 19 ‘Employee benefits’ introduces a number of amendments to the accounting for defined benefit plans. Among them, revised IAS 19 eliminates the “corridor method” under which the recognition of actuarial gains and losses relating to defined benefit schemes could be deferred and recognised in profit or loss over the expected average remaining service lives of employees. Under the revised standard, all actuarial gains and losses are required to be recognised immediately in other comprehensive income. Revised IAS 19 also changed the basis for determining income from plan assets from expected return to interest income calculated at the liability discount rate, and requires immediate recognition of past service cost, whether vested or not. This change in accounting policy does not have any material impact on the financial position and the financial result of the Company and its subsidiaries.
|
|
‧
|
Annual Improvements to IFRSs 2009-2011 Cycle contains amendments to five standards with consequential amendments to other standards and interpretations. Among them, IAS 34 has been amended to clarify that total assets for a particular reportable segment are required to be disclosed only if the amounts are regularly provided to the chief operating decision maker (CODM) and only if there has been a material change in the total assets for that segment from the amount disclosed in the last annual financial statements. The amendment also requires the disclosure of segment liabilities if the amounts are regularly provided to the CODM and there has been a material change in the amounts compared with the last annual financial statements. The amendment does not have any impact on the segment disclosure of the Company and its subsidiaries because the Company and its subsidiaries have been disclosing and will continue to disclose the segment assets and liabilities (note 4).
|
|
‧
|
Amendments to IFRS 7 – Disclosures – Offsetting financial assets and financial liabilities. The amendments introduce new disclosures in respect of offsetting financial assets and financial liabilities. Those new disclosures are required for all recognised financial instruments that are set off in accordance with IAS 32, Financial instruments: Presentation and those that are subject to an enforceable master netting arrangement or similar agreement that covers similar financial instruments and transactions, irrespective of whether the financial instruments are set off in accordance with IAS 32.
|
|
|
The adoption of the amendments does not have an impact on the Company and its subsidiaries’ interim financial report because the Company and its subsidiaries have not offset financial instruments, nor have they entered into master netting arrangement or similar agreement which is subject to the disclosures of IFRS 7.
|
4.
|
REVENUE AND SEGMENT INFORMATION
|
For the six months
|
||||||||
ended 30 June
|
||||||||
2013
|
2012
|
|||||||
Sales of power and heat
|
63,236,097 | 66,111,825 | ||||||
Sales of coal
|
229,071 | 336,336 | ||||||
Port and transportation service
|
210,354 | 203,745 | ||||||
Others
|
386,807 | 528,567 | ||||||
Total
|
64,062,329 | 67,180,473 | ||||||
4.
|
REVENUE AND SEGMENT INFORMATION (Cont’d)
|
PRC power segment
|
Singapore segment
|
All other segments
|
Total
|
|||||||||||||
For the six months
|
||||||||||||||||
ended 30 June 2013
|
||||||||||||||||
Total revenue
|
56,349,262 | 7,486,237 | 286,747 | 64,122,246 | ||||||||||||
Inter-segment revenue
|
– | – | (59,917 | ) | (59,917 | ) | ||||||||||
Revenue from external customers
|
56,349,262 | 7,486,237 | 226,830 | 64,062,329 | ||||||||||||
Segment results
|
8,939,569 | 343,697 | (38,862 | ) | 9,244,404 | |||||||||||
Interest income
|
48,096 | 35,203 | 563 | 83,862 | ||||||||||||
Interest expense
|
(3,480,187 | ) | (230,313 | ) | (63,488 | ) | (3,773,988 | ) | ||||||||
Depreciation and amortization
|
(5,234,094 | ) | (345,407 | ) | (80,648 | ) | (5,660,149 | ) | ||||||||
Net loss on disposal of property, plant and equipment
|
(113,614 | ) | (1,004 | ) | – | (114,618 | ) | |||||||||
Share of profits of associates and jointly controlled entities
|
356,412 | – | (131,095 | ) | 225,317 | |||||||||||
Income tax expense
|
(2,229,265 | ) | (67,424 | ) | (7,909 | ) | (2,304,598 | ) | ||||||||
For the six months
|
||||||||||||||||
ended 30 June 2012
|
||||||||||||||||
Total revenue
|
56,321,446 | 10,653,220 | 307,770 | 67,282,436 | ||||||||||||
Inter-segment revenue
|
– | – | (101,963 | ) | (101,963 | ) | ||||||||||
Revenue from external customers
|
56,321,446 | 10,653,220 | 205,807 | 67,180,473 | ||||||||||||
Segment results
|
2,875,463 | 867,327 | (77,193 | ) | 3,665,597 | |||||||||||
Interest income
|
41,290 | 35,430 | 322 | 77,042 | ||||||||||||
Interest expense
|
(4,111,685 | ) | (234,091 | ) | (70,637 | ) | (4,416,413 | ) | ||||||||
Depreciation and amortization
|
(5,234,967 | ) | (300,923 | ) | (71,014 | ) | (5,606,904 | ) | ||||||||
Net loss on disposal of property, plant and equipment
|
(66,279 | ) | (654 | ) | (1,803 | ) | (68,736 | ) | ||||||||
Share of profits of associates
|
||||||||||||||||
and jointly controlled entities
|
242,495 | – | (28,375 | ) | 214,120 | |||||||||||
Income tax expense
|
(863,149 | ) | (156,737 | ) | (5,373 | ) | (1,025,259 | ) |
4.
|
REVENUE AND SEGMENT INFORMATION (Cont’d)
|
PRC power segment
|
Singapore segment
|
All other segments
|
Total
|
|||||||||||||
30 June 2013
|
||||||||||||||||
Segment assets
|
213,126,203 | 30,765,209 | 11,192,561 | 255,083,973 | ||||||||||||
Including:
|
||||||||||||||||
Additions to non-current assets
|
||||||||||||||||
(excluding financial assets and deferred income tax assets)
|
4,906,923 | 498,791 | 431,293 | 5,837,007 | ||||||||||||
Investments in associates
|
10,581,654 | – | 2,390,122 | 12,971,776 | ||||||||||||
Investments in jointly controlled entities
|
697,000 | – | 980,396 | 1,677,396 | ||||||||||||
Segment liabilities
|
(162,767,816 | ) | (16,575,110 | ) | (4,453,076 | ) | (183,796,002 | ) | ||||||||
31 December 2012
|
||||||||||||||||
Segment assets
|
210,014,318 | 32,283,757 | 9,225,290 | 251,523,365 | ||||||||||||
Including:
|
||||||||||||||||
Additions to non-current assets
|
||||||||||||||||
(excluding financial assets and deferred income tax assets)
|
30,557,482 | 2,396,858 | 1,261,944 | 34,216,284 | ||||||||||||
Investments in associates
|
10,449,684 | – | 914,600 | 11,364,284 | ||||||||||||
Investments in jointly controlled entities
|
640,000 | – | 1,056,637 | 1,696,637 | ||||||||||||
Segment liabilities
|
(160,960,185 | ) | (17,872,738 | ) | (4,060,893 | ) | (182,893,816 | ) |
4.
|
REVENUE AND SEGMENT INFORMATION (Cont’d)
|
For the six months
ended 30 June
|
||||||||
2013
|
2012
|
|||||||
Segment results (PRC GAAP)
|
9,244,404 | 3,665,597 | ||||||
Reconciling items:
|
||||||||
Loss related to the headquarters
|
(98,496 | ) | (306,385 | ) | ||||
Investment income from China Huaneng Finance Co., Ltd. (“Huaneng Finance”)
|
80,467 | 67,464 | ||||||
Dividend income of available-for-sale financial assets
|
185,399 | 185,880 | ||||||
Impact of IFRS adjustments*
|
(363,031 | ) | (165,836 | ) | ||||
Profit before income tax expense per unaudited condensed consolidated interim statement of comprehensive income
|
9,048,743 | 3,446,720 |
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Total segment assets (PRC GAAP)
|
255,083,973 | 251,523,365 | ||||||
Reconciling items:
|
||||||||
Investment in Huaneng Finance
|
1,299,492 | 1,257,181 | ||||||
Deferred income tax assets
|
614,671 | 672,840 | ||||||
Prepaid income tax
|
941 | 14,850 | ||||||
Available-for-sale financial assets
|
3,315,700 | 3,102,822 | ||||||
Corporate assets
|
447,864 | 290,811 | ||||||
Impact of IFRS adjustments*
|
1,751,961 | 2,238,503 | ||||||
Total assets per unaudited condensed consolidated interim balance sheet
|
262,514,602 | 259,100,372 |
4.
|
REVENUE AND SEGMENT INFORMATION (Cont’d)
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Total segment liabilities (PRC GAAP)
|
(183,796,002 | ) | (182,893,816 | ) | ||||
Reconciling items:
|
||||||||
Current income tax liabilities
|
(675,802 | ) | (788,624 | ) | ||||
Deferred income tax liabilities
|
(1,767,331 | ) | (1,776,203 | ) | ||||
Corporate liabilities
|
(6,577,514 | ) | (6,484,987 | ) | ||||
Impact of IFRS adjustments*
|
(786,376 | ) | (1,196,400 | ) | ||||
Total liabilities per unaudited condensed consolidated interim balance sheet
|
(193,603,025 | ) | (193,140,030 | ) |
Reportable segment total
|
Headquarters
|
Investment income from Huaneng Finance
|
Impact of IFRS adjustments*
|
Total
|
||||||||||||||||
For the six months
|
||||||||||||||||||||
ended 30 June 2013
|
||||||||||||||||||||
Interest expense
|
(3,773,988 | ) | (174,904 | ) | – | – | (3,948,892 | ) | ||||||||||||
Depreciation and amortization
|
(5,660,149 | ) | (26,129 | ) | – | (31,743 | ) | (5,718,021 | ) | |||||||||||
Share of profits of associates and jointly controlled entities
|
225,317 | – | 80,467 | 13,709 | 319,493 | |||||||||||||||
Income tax expense
|
(2,304,598 | ) | – | – | 16,536 | (2,288,062 | ) | |||||||||||||
For the six months
|
||||||||||||||||||||
ended 30 June 2012
|
||||||||||||||||||||
Interest expense
|
(4,416,413 | ) | (148,491 | ) | – | – | (4,564,904 | ) | ||||||||||||
Depreciation and amortization
|
(5,606,904 | ) | (22,307 | ) | – | (87,031 | ) | (5,716,242 | ) | |||||||||||
Share of profits of associates and jointly controlled entities
|
214,120 | – | 67,464 | 9,082 | 290,666 | |||||||||||||||
Income tax expense
|
(1,025,259 | ) | – | – | 30,616 | (994,643 | ) |
|
*
|
The GAAP adjustments above primarily represented the classification adjustments and other adjustments. The GAAP adjustments other than classification were primarily brought forward from prior years. Such differences will be gradually eliminated following subsequent depreciation and amortization of related assets or the extinguishment of liabilities.
|
4.
|
REVENUE AND SEGMENT INFORMATION (Cont’d)
|
For the six months
ended 30 June
|
||||||||
2013
|
2012
|
|||||||
PRC
|
56,576,092 | 56,527,253 | ||||||
Singapore
|
7,486,237 | 10,653,220 | ||||||
64,062,329 | 67,180,473 |
|
(ii)
|
Non-current assets (excluding financial assets and deferred income tax assets) are located in the following countries:
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
PRC
|
193,485,250 | 192,281,707 | ||||||
Singapore
|
25,369,816 | 26,459,701 | ||||||
218,855,066 | 218,741,408 |
For the six months ended 30 June
|
||||
2013
|
2012
|
|||
Amount
|
Proportion
|
Amount
|
Proportion
|
|
Jiangsu Electric Power Company
|
7,891,269
|
12%
|
8,129,786
|
12%
|
Shandong Electric Power Corporation
|
7,604,824
|
12%
|
8,159,383
|
12%
|
5.
|
PROPERTY, PLANT AND EQUIPMENT
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Beginning of the period/year
|
177,013,627 | 177,968,001 | ||||||
Acquisition
|
30,885 | – | ||||||
Additions
|
5,787,358 | 12,970,059 | ||||||
Disposals/write-off
|
(230,263 | ) | (2,327,091 | ) | ||||
Depreciation charge
|
(5,609,905 | ) | (11,083,756 | ) | ||||
Impairment charge
|
(64,448 | ) | (903,463 | ) | ||||
Currency translation differences
|
(505,062 | ) | 389,877 | |||||
End of the period/year
|
176,422,192 | 177,013,627 |
6.
|
FINANCIAL INSTRUMENTS
|
|
(i)
|
Fair value measurements
|
|
‧
|
Level 1– Quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
|
‧
|
Level 2– Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
|
|
‧
|
Level 3– Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
|
6.
|
FINANCIAL INSTRUMENTS (Cont’d)
|
|
(i)
|
Fair value measurements (Cont’d)
|
The Company and its subsidiaries
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets
|
||||||||||||||||
Financial assets at fair value through profit or loss
|
||||||||||||||||
– Trading derivatives
|
– | 12,032 | – | 12,032 | ||||||||||||
Derivatives used for hedging
|
– | 47,198 | – | 47,198 | ||||||||||||
Available-for-sale financial assets
|
||||||||||||||||
– Equity securities
|
1,782,313 | – | – | 1,782,313 | ||||||||||||
Total assets
|
1,782,313 | 59,230 | – | 1,841,543 | ||||||||||||
Liabilities
|
||||||||||||||||
Financial liabilities at fair value through profit or loss
|
||||||||||||||||
– Trading derivatives
|
– | 5,272 | – | 5,272 | ||||||||||||
Derivatives used for hedging
|
– | 501,728 | – | 501,728 | ||||||||||||
Total liabilities
|
– | 507,000 | – | 507,000 |
6.
|
FINANCIAL INSTRUMENTS (Cont’d)
|
|
(i)
|
Fair value measurements (Cont’d)
|
The Company and its subsidiaries
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets
|
||||||||||||||||
Financial assets at fair value through profit or loss
|
||||||||||||||||
– Trading derivatives
|
– | 1,286 | – | 1,286 | ||||||||||||
– Trading securities*
|
93,753 | – | – | 93,753 | ||||||||||||
Derivatives used for hedging
|
– | 67,705 | – | 67,705 | ||||||||||||
Available-for-sale financial assets
|
||||||||||||||||
– Equity securities
|
1,769,435 | – | – | 1,769,435 | ||||||||||||
Total assets
|
1,863,188 | 68,991 | – | 1,932,179 | ||||||||||||
Liabilities
|
||||||||||||||||
Financial liabilities at fair value
|
||||||||||||||||
through profit or loss
|
||||||||||||||||
– Trading derivatives
|
– | 1,214 | – | 1,214 | ||||||||||||
Derivatives used for hedging
|
– | 924,432 | – | 924,432 | ||||||||||||
Total liabilities
|
– | 925,646 | – | 925,646 |
|
*
|
In December 2011, SinoSing Power acquired 70,320,000 shares of Beijing Jingneng Clean Energy Co., Ltd., a listed entity in Hong Kong. The fair value of such trading securities was determined based on quoted market price of HKD 1.66 per share as at 31 December 2012. The trading securities were disposed of in March 2013.
|
6.
|
FINANCIAL INSTRUMENTS (Cont’d)
|
|
(i)
|
Fair value measurements (Cont’d)
|
|
‧
|
The forward exchange contracts and fuel oil swaps are both valued using quoted market prices or dealer quotes for similar instruments.
|
|
‧
|
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.
|
|
(ii)
|
Fair value disclosures
|
7.
|
GOODWILL
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Beginning of the period/year
|
14,417,543 | 13,890,179 | ||||||
Impairment charge
|
– | (107,735 | ) | |||||
Adjustment on 2011 acquisitions
|
– | 134,460 | ||||||
Currency translation differences
|
(547,143 | ) | 500,639 | |||||
End of the period/year
|
13,870,400 | 14,417,543 |
8.
|
OTHER NON-CURRENT ASSETS
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Prepaid territorial waters use right
|
815,015 | 814,813 | ||||||
Finance lease receivables
|
563,405 | 589,136 | ||||||
Intangible assets
|
392,042 | 415,524 | ||||||
VAT recoverable
|
470,419 | 540,505 | ||||||
Prepaid connection fees
|
99,687 | 115,284 | ||||||
Others
|
552,258 | 607,632 | ||||||
Total
|
2,892,826 | 3,082,894 |
9.
|
OTHER RECEIVABLES AND ASSETS
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Prepayments for inventories
|
994,437 | 780,042 | ||||||
Prepayments for pre-construction cost
|
332,674 | 415,621 | ||||||
Prepaid income tax
|
941 | 14,850 | ||||||
Others
|
158,663 | 127,705 | ||||||
Total prepayments
|
1,486,715 | 1,338,218 | ||||||
Staff advances
|
33,343 | 14,153 | ||||||
Dividends receivable
|
500,425 | 50,000 | ||||||
Financial lease receivables
|
14,272 | 13,746 | ||||||
Fuel receivables
|
163,128 | 211,987 | ||||||
Others
|
476,629 | 448,820 | ||||||
Subtotal other receivables
|
1,187,797 | 738,706 | ||||||
Less: provision for doubtful accounts
|
(28,628 | ) | (28,641 | ) | ||||
Total other receivables, net
|
1,159,169 | 710,065 | ||||||
VAT recoverable
|
583,533 | 942,112 | ||||||
Gross total
|
3,258,045 | 3,019,036 | ||||||
Net total
|
3,229,417 | 2,990,395 |
10.
|
ACCOUNTS RECEIVABLE
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Accounts receivable
|
13,104,594 | 14,953,794 | ||||||
Notes receivable
|
593,845 | 357,589 | ||||||
13,698,439 | 15,311,383 | |||||||
Less: provision for doubtful accounts
|
(9,100 | ) | (11,419 | ) | ||||
13,689,339 | 15,299,964 |
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Within 1 year
|
13,466,519 | 15,236,883 | ||||||
Between 1 to 2 years
|
196,069 | 49,693 | ||||||
Between 2 to 3 years
|
26,175 | 12,951 | ||||||
Over 3 years
|
9,676 | 11,856 | ||||||
13,698,439 | 15,311,383 |
11.
|
DIVIDENDS
|
12.
|
LONG-TERM LOANS
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Loans from Huaneng Group (a)
|
800,000 | 800,000 | ||||||
Bank loans (b)
|
75,467,468 | 80,386,702 | ||||||
Other loans (c)
|
1,433,965 | 434,825 | ||||||
77,701,433 | 81,621,527 | |||||||
Less: Current portion of long-term loans
|
(9,288,230 | ) | (9,056,703 | ) | ||||
Total
|
68,413,203 | 72,564,824 |
|
(a)
|
Loans from Huaneng Group
|
As at 30 June 2013
|
||||||||||||||||||||
Original
currency
|
RMB
equivalent
|
Less: Current
portion
|
Non-current
portion
|
Annual
interest rate
|
||||||||||||||||
’000 | ||||||||||||||||||||
Loans from
|
||||||||||||||||||||
Huaneng Group
|
||||||||||||||||||||
Unsecured
|
||||||||||||||||||||
– RMB
|
800,000 | 800,000 | (800,000 | ) | – | 4.05%-4.60 | % | |||||||||||||
As at 31 December 2012
|
||||||||||||||||||||
Original
currency
|
RMB equivalent
|
Less: Current
portion
|
Non-current portion
|
Annual interest rate
|
||||||||||||||||
’000 | ||||||||||||||||||||
Loans from
|
||||||||||||||||||||
Huaneng Group
|
||||||||||||||||||||
Unsecured
|
||||||||||||||||||||
– RMB
|
800,000 | 800,000 | (800,000 | ) | – | 4.05%-4.60 | % |
12.
|
LONG-TERM LOANS (Cont’d)
|
|
(b)
|
Bank loans
|
As at 30 June 2013
|
||||||||||||||||||||
Original currency
|
RMB equivalent
|
Less: Current portion
|
Non-current portion
|
Annual interest rate
|
||||||||||||||||
’000 | ||||||||||||||||||||
Bank loans
|
||||||||||||||||||||
Secured
|
||||||||||||||||||||
– US$
|
2,462 | 15,221 | – | 15,221 | 2.70 | % | ||||||||||||||
– RMB
|
12,346,820 | 12,346,820 | (1,163,050 | ) | 11,183,770 | 5.90%-6.55 | % | |||||||||||||
Unsecured
|
||||||||||||||||||||
– RMB
|
44,495,442 | 44,495,442 | (6,419,777 | ) | 38,075,665 | 4.51%-6.55 | % | |||||||||||||
– US$
|
653,491 | 4,037,724 | (460,605 | ) | 3,577,119 | 0.74%-6.36 | % | |||||||||||||
– S$
|
2,887,002 | 13,993,298 | (369,550 | ) | 13,623,748 | 2.02 | % | |||||||||||||
– €
|
71,889 | 578,963 | (75,248 | ) | 503,715 | 2.00%-2.15 | % | |||||||||||||
Total
|
75,467,468 | (8,488,230 | ) | 66,979,238 | ||||||||||||||||
As at 31 December 2012
|
||||||||||||||||||||
Original currency
|
RMB equivalent
|
Less: Current portion
|
Non-current portion
|
Annual interest rate
|
||||||||||||||||
’000 | ||||||||||||||||||||
Bank loans
|
||||||||||||||||||||
Secured
|
||||||||||||||||||||
– US$
|
2,462 | 15,478 | – | 15,478 | 2.74 | % | ||||||||||||||
– RMB
|
12,603,780 | 12,603,780 | (1,057,020 | ) | 11,546,760 | 5.90%-6.55 | % | |||||||||||||
Unsecured
|
||||||||||||||||||||
– RMB
|
47,892,706 | 47,892,706 | (6,266,734 | ) | 41,625,972 | 4.51%-7.05 | % | |||||||||||||
– US$
|
690,764 | 4,341,799 | (468,566 | ) | 3,873,233 | 0.54%-6.36 | % | |||||||||||||
– S$
|
2,924,883 | 14,896,139 | (386,668 | ) | 14,509,471 | 2.15 | % | |||||||||||||
– €
|
76,560 | 636,800 | (77,715 | ) | 559,085 | 2.00%-2.15 | % | |||||||||||||
Total
|
80,386,702 | (8,256,703 | ) | 72,129,999 |
12.
|
LONG-TERM LOANS (Cont’d)
|
|
(b)
|
Bank loans (Cont’d)
|
|
(c)
|
Other loans
|
As at 30 June 2013
|
||||||||||||||||||||
Original
currency
|
RMB equivalent
|
Less: Current portion
|
Non-current portion
|
Annual interest rate
|
||||||||||||||||
’000 | ||||||||||||||||||||
Other loans
|
||||||||||||||||||||
Unsecured
|
||||||||||||||||||||
– RMB
|
1,417,000 | 1,417,000 | – | 1,417,000 | 5.35%-5.84 | % | ||||||||||||||
– S$
|
3,500 | 16,965 | – | 16,965 | 4.25 | % | ||||||||||||||
Total
|
1,433,965 | – | 1,433,965 | |||||||||||||||||
As at 31 December 2012
|
||||||||||||||||||||
Original currency
|
RMB equivalent
|
Less: Current portion
|
Non-current portion
|
Annual interest rate
|
||||||||||||||||
’000 | ||||||||||||||||||||
Other loans
|
||||||||||||||||||||
Unsecured
|
||||||||||||||||||||
– RMB
|
417,000 | 417,000 | – | 417,000 | 5.54%-5.84 | % | ||||||||||||||
– S$
|
3,500 | 17,825 | – | 17,825 | 4.25 | % | ||||||||||||||
Total
|
434,825 | – | 434,825 |
13.
|
LONG-TERM BONDS
|
13.
|
LONG-TERM BONDS (Cont’d)
|
14.
|
OTHER NON-CURRENT LIABILITIES
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Environmental subsidies (a)
|
694,518 | 673,686 | ||||||
Security deposits
|
81,014 | 129,928 | ||||||
Finance lease payables
|
88,423 | 95,886 | ||||||
Government grants and others
|
337,281 | 347,964 | ||||||
1,201,236 | 1,247,464 |
|
(a)
|
These primarily represented subsidies for the construction of desulphurization equipment and other environmental protection projects.
|
15.
|
ACCOUNTS PAYABLE AND OTHER LIABILITIES
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Accounts and notes payable
|
9,893,943 | 7,354,260 | ||||||
Provisions (a)
|
167,119 | 157,263 | ||||||
Other payables and accrued liabilities
|
12,487,502 | 12,481,378 | ||||||
22,548,564 | 19,992,901 |
|
(a)
|
As at 30 June 2013, a provision of RMB167 million was made due to a legal claim by a vendor of the Company’s subsidiary. The outcome of this legal claim is not expected to give rise to any significant loss beyond the amount provided as at 30 June 2013 (31 December 2012: RMB157 million).
|
15.
|
ACCOUNTS PAYABLE AND OTHER LIABILITIES (Cont’d)
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Within 1 year
|
9,806,980 | 7,287,106 | ||||||
Between 1 to 2 years
|
45,079 | 51,847 | ||||||
Over 2 years
|
41,884 | 15,307 | ||||||
9,893,943 | 7,354,260 |
16.
|
SHORT-TERM BONDS
|
17.
|
SHORT-TERM LOANS
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||||||||||||||||||
Original currency
|
RMB equivalent
|
Annual interest rate
|
Original currency
|
RMB equivalent
|
Annual
interest rate
|
|||||||||||||||||||
’000 | ’000 | |||||||||||||||||||||||
Secured
|
||||||||||||||||||||||||
RMB
|
||||||||||||||||||||||||
– Fixed rate
|
5,470,000 | 5,470,000 | 5.04%-6.00 | % | 6,520,000 | 6,520,000 | 5.04%-5.40 | % | ||||||||||||||||
– Fixed rate-discounted
|
||||||||||||||||||||||||
notes receivable
|
– | – | – | 21,250 | 21,250 | 6.08%-6.30 | % | |||||||||||||||||
5,470,000 | 6,541,250 | |||||||||||||||||||||||
Unsecured
|
||||||||||||||||||||||||
RMB
|
||||||||||||||||||||||||
– Fixed rate
|
19,596,560 | 19,596,560 | 5.32%-6.00 | % | 20,900,826 | 20,900,826 | 5.04%-6.56 | % | ||||||||||||||||
– Variable rate
|
4,590,000 | 4,590,000 | 5.32%-5.40 | % | – | – | – | |||||||||||||||||
29,656,560 | 27,442,076 |
18.
|
ADDITIONAL FINANCIAL INFORMATION ON UNAUDITED CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
|
19.
|
PROFIT BEFORE INCOME TAX EXPENSE
|
For the six months
ended 30 June
|
||||||||
|
||||||||
2013
|
2012
|
|||||||
Interest expense on
|
||||||||
– loans
|
2,791,044 | 4,031,952 | ||||||
– short-term bonds
|
706,940 | 228,096 | ||||||
– long-term bonds (including current portion)
|
667,584 | 652,914 | ||||||
Total interest expense on borrowings
|
4,165,568 | 4,912,962 | ||||||
Less: amounts capitalized in property, plant and equipment
|
(216,676 | ) | (348,058 | ) | ||||
Interest expense charged in unaudited condensed consolidated interim statement of comprehensive income
|
3,948,892 | 4,564,904 | ||||||
Loss on disposals/write-off of property, plant and equipment, net
|
114,902 | 68,695 | ||||||
Reversal of doubtful accounts
|
(2,142 | ) | (11,482 | ) |
20.
|
INCOME TAX EXPENSE
|
20.
|
INCOME TAX EXPENSE (Cont’d)
|
21.
|
EARNINGS PER SHARE
|
For the six months
ended 30 June
|
||||||||
2013
|
2012
|
|||||||
Consolidated net profit attributable to equity holders of the Company
|
5,622,740 | 2,121,963 | ||||||
Weighted average number of the Company’s outstanding ordinary shares (’000)
|
14,055,383 | 14,055,383 | ||||||
Basic earnings per share (RMB)
|
0.40 | 0.15 |
22.
|
BANK BALANCES AND CASH
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||
Restricted cash
|
81,134 | 119,110 | ||||||
Cash and cash equivalents
|
15,621,406 | 10,505,387 | ||||||
Total
|
15,702,540 | 10,624,497 |
23.
|
RELATED PARTY TRANSACTIONS
|
Names of related parties
|
Nature of relationship
|
|
Huaneng Group
|
Ultimate parent company
|
|
HIPDC
|
Parent company
|
|
Huaneng Property Co., Ltd.
|
A subsidiary of Huaneng Group
|
|
Huaneng Group Technology Innovation Center
|
A subsidiary of Huaneng Group
|
|
Huaneng Hulunbeier Energy Development Company Ltd. (“Hulunbeier Energy”)
|
A subsidiary of Huaneng Group
|
|
Huaneng Suzhou Thermoelectric Power Company Ltd.
|
A subsidiary of Huaneng Group
|
|
Huaneng Wuhan Power Co., Ltd
|
A subsidiary of Huaneng Group
|
|
Gansu Huating Coal and Power Co., Ltd. (“Huating Coal and Power”)
|
A subsidiary of Huaneng Group
|
|
Alltrust Insurance Co., Ltd.
|
A subsidiary of Huaneng Group
|
|
North United Power Coal Transportation and Marketing Co., Ltd. (“North United Power”)
|
A subsidiary of Huaneng Group
|
|
Huaneng Guicheng Trust Co., Ltd. (“Huaneng Guicheng Trust”)
|
A subsidiary of Huaneng Group
|
|
Huaneng Clean Energy
|
A subsidiary of Huaneng Group
|
|
Huaneng Renewables Corporation Limited (“Huaneng Renewables”)
|
A subsidiary of Huaneng Group
|
|
Huaneng Energy & Communications Holdings Co., Ltd. (“HEC”) and its subsidiaries
|
Subsidiaries of Huaneng Group
|
|
Xi’an Thermal Power Research Institute Co., Ltd. (“Xi’an Thermal”) and its subsidiaries
|
Subsidiaries of Huaneng Group
|
|
Shandong Power Limited and its subsidiaries
|
Subsidiaries of Huaneng Group
|
|
Huaneng Carbon Assets Management Company Limited
|
A subsidiary of Huaneng Group
|
|
Huaneng Anyuan Power Generation Co., Ltd (“Anyuan Power Generation”)
|
A subsidiary of HIPDC
|
|
Huaneng Ruijin Power Generation Co., Ltd. (“Ruijin Power Generation”)
|
A subsidiary of HIPDC
|
|
Huaneng Finance
|
An associate of the Company and also a subsidiary of Huaneng Group
|
|
Huaneng Jinling Combined Cycle Co-generation Co., Ltd (“Jinling CCGT”)
|
An associate of the Company
|
|
Shandong Rizhao Power Company Ltd. (“Rizhao Power Company”)
|
An associate of the Company and also a subsidiary of Huaneng Group
|
|
Chongqing Huaneng Lime Company Limited (“Lime Company”)
|
An associate of a subsidiary
|
|
China Huaneng Group Fuel Co., Ltd. and its subsidiaries
|
An associate of the Company and also a subsidiary of Huaneng Group
|
|
Subsidiaries of Jiangsu Province Guoxin Asset Management Group Limited Company (“Jiangsu Guoxin”)*
|
A minority shareholder of the Company’s subsidiaries
|
|
Shanghai Time Shipping Limited Company (“Time Shipping”)
|
A jointly controlled entity of the Company
|
|
Government-related enterprises**
|
Related parties of the Company
|
|
*
|
The director of the Company, Mr. Xu Zujian also serves as the Vice President of Jiangsu Guoxin. Meanwhile, Jiangsu Guoxin holds 30%, 26.36%, 30% and 21% equity interest of Huaneng Nantong Power Generation Limited Liability Company, Huaneng Huaiyin II Power Limited Company, Huaneng Nanjing Jinling Power Co., Ltd. and Jinling CCGT, respectively.
|
|
**
|
Huaneng Group is a state-owned enterprise. In accordance with the revised IAS 24, ‘Related Party Disclosures’, government-related enterprises, other than entities under Huaneng Group, which the PRC government has control, joint control or significant influence over are also considered as related parties of the Company and its subsidiaries (“other government-related enterprises”).
|
23.
|
RELATED PARTY TRANSACTIONS (Cont’d)
|
|
(a)
|
Related party transactions
|
For the six months
ended 30 June
|
||||||||
2013
|
2012
|
|||||||
Huaneng Group
|
||||||||
Interest expense on long-term loans
|
(19,112 | ) | (18,301 | ) | ||||
Training fees
|
(10 | ) | – | |||||
Purchase of capacity quota
|
(411,260 | ) | – | |||||
HIPDC
|
||||||||
Service fees expenses on transmission
|
||||||||
and transformer facilities
|
(70,386 | ) | (70,386 | ) | ||||
Rental charge on land use rights of
|
||||||||
Huaneng Nanjing Power Plant
|
(828 | ) | (667 | ) | ||||
Huaneng Finance
|
||||||||
Drawdown of short-term loans
|
600,000 | 2,715,000 | ||||||
Drawdown of long-term loans
|
– | 150,000 | ||||||
Interest expense on short-term loans
|
(34,046 | ) | (58,357 | ) | ||||
Interest expense on long-term loans
|
(11,836 | ) | (4,232 | ) | ||||
HEC and its subsidiaries
|
||||||||
Purchase of coal and service
|
||||||||
fee occurred for transportation
|
(593,922 | ) | (231,356 | ) | ||||
Purchase of equipment
|
– | (75,935 | ) | |||||
Purchase of materials
|
(2,275 | ) | – | |||||
Lime Company
|
||||||||
Purchase of lime
|
(63,239 | ) | (52,192 | ) |
23.
|
RELATED PARTY TRANSACTIONS (Cont’d)
|
|
(a)
|
Related party transactions (Cont’d)
|
For the six months
ended 30 June
|
||||||||
|
||||||||
2013
|
2012
|
|||||||
Xi’an Thermal and its subsidiaries
|
||||||||
Technical services and industry-specific
|
||||||||
technological project contracting services obtained
|
(37,734 | ) | (87,571 | ) | ||||
Purchase of equipment
|
(96,453 | ) | (236,887 | ) | ||||
Drawdown of short-term loans
|
– | 100,000 | ||||||
Interest expense on short-term loans
|
– | (4,093 | ) | |||||
Hulunbeier Energy
|
||||||||
Purchase of coal
|
(425,978 | ) | (468,741 | ) | ||||
Rizhao Power Company
|
||||||||
Purchase of coal
|
(826,542 | ) | (1,188,867 | ) | ||||
Sales of electricity
|
2,469 | 1,552 | ||||||
Purchase of materials
|
(13,695 | ) | (2,442 | ) | ||||
Purchase of electricity
|
(5,294 | ) | (2,776 | ) | ||||
Sales of coal
|
20,559 | 151,301 | ||||||
Rental charges on lease of intangible assets
|
||||||||
and certain property, plant and equipment
|
(7,713 | ) | (1,652 | ) | ||||
Huaneng Suzhou Thermoelectric Power Company Ltd.
|
||||||||
Sale of coal
|
– | 20,596 | ||||||
Huaneng Wuhan Power Co., Ltd.
|
||||||||
Sales of coal
|
8,851 | 156,606 | ||||||
Ruijin Power Generation
|
||||||||
Sale of coal
|
34,885 | 89,374 | ||||||
Huaneng Property Co., Ltd.
|
||||||||
Rental charge on office building
|
(48,047 | ) | (48,648 | ) | ||||
North United Power
|
||||||||
Purchase of coal
|
(53,347 | ) | (85,877 | ) |
23.
|
RELATED PARTY TRANSACTIONS (Cont’d)
|
|
(a)
|
Related party transactions (Cont’d)
|
For the six months
ended 30 June
|
||||||||
|
||||||||
|
||||||||
2013
|
2012
|
|||||||
Huating Coal and Power
|
||||||||
Purchase of coal
|
(861,978 | ) | (799,037 | ) | ||||
Huaneng Guicheng Trust
|
||||||||
Interest expense on short-term loans
|
– | (118,323 | ) | |||||
Alltrust Insurance Co., Ltd.
|
||||||||
Premiums for property insurance
|
(83,121 | ) | (90,453 | ) | ||||
Huaneng Group Technology Innovation Center
|
||||||||
Technical services and industry-specific technological project contracting services obtained
|
(680 | ) | (485 | ) | ||||
Time Shipping
|
||||||||
Purchase of coal and service fee paid for transportation
|
(1,127,455 | ) | (720,642 | ) | ||||
Purchase of tug boats
|
– | (48,300 | ) | |||||
Shandong Power Limited and its subsidiaries
|
||||||||
Sale of coal
|
– | 5,640 | ||||||
Sale of transportation service
|
15,038 | 6,894 | ||||||
Purchase of coal
|
(944,809 | ) | – | |||||
Interest expense on short-term loans
|
(1,508 | ) | – | |||||
Purchase of power generation quota
|
(61,958 | ) | – | |||||
China Huaneng Group Fuel Co., Ltd. and its subsidiaries
|
||||||||
Purchase of coal
|
(835,127 | ) | (287,125 | ) | ||||
Sale of coal
|
65,586 | – | ||||||
Huaneng Clean Energy
|
||||||||
Interest expense on short-term loans
|
(3,288 | ) | (3,271 | ) | ||||
Jinling CCGT
|
||||||||
Interest income on short-term loans
|
– | 2,637 | ||||||
Entrusted management fee
|
– | 15,544 | ||||||
Sales of heat
|
1,434 | – |
23.
|
RELATED PARTY TRANSACTIONS (Cont’d)
|
|
(a)
|
Related party transactions (Cont’d)
|
For the six months
ended 30 June
|
||||||||
|
||||||||
|
||||||||
2013
|
2012
|
|||||||
Anyuan Power Generation
|
||||||||
Provision of entrusted power generation
|
70,988 | 106,656 | ||||||
Huaneng Renewables
|
||||||||
Agency fee on CDM projects
|
(700 | ) | – | |||||
Huaneng Carbon Assets Management
|
||||||||
Company Limited
|
||||||||
Agency fee on CDM projects
|
(1,702 | ) | – | |||||
Subsidiaries of Jiangsu Guoxin
|
||||||||
Provision of entrusted power generation
|
50,814 | – |
23.
|
RELATED PARTY TRANSACTIONS (Cont’d)
|
|
(b)
|
Guarantees
|
As at 30
|
As at 31
|
|||||||||
June 2013
|
December 2012
|
|||||||||
(i)
|
Loans guaranteed by
|
|||||||||
– Huaneng Group
|
466,537 | 532,508 | ||||||||
– HIPDC
|
2,000,000 | 2,000,000 | ||||||||
(ii)
|
Long-term bonds guaranteed by
|
|||||||||
– HIPDC
|
4,000,000 | 4,000,000 | ||||||||
– Government-related banks
|
5,000,000 | 5,000,000 |
|
(c)
|
Pre-tax benefits and social insurance of key management personnel
|
For the six months
|
||||||||
ended 30 June
|
||||||||
|
||||||||
|
||||||||
2013
|
2012
|
|||||||
Salaries
|
5,803 | 3,498 | ||||||
Pension
|
640 | 501 | ||||||
Total
|
6,443 | 3,999 |
24.
|
CAPITAL AND OTHER COMMITMENTS
|
|
(a)
|
Capital commitments
|
As at 30
|
As at 31
|
|||||||
June 2013
|
December 2012
|
|||||||
Contracted but not provided for
|
||||||||
– construction
|
15,556,403 | 10,463,817 | ||||||
Authorized but not contracted for
|
||||||||
– construction
|
170,927 | 1,062,672 | ||||||
Total
|
15,727,330 | 11,526,489 |
24.
|
CAPITAL AND OTHER COMMITMENTS (Cont’d)
|
|
(b)
|
Other material long-term commitments
|
As at 30 June 2013
|
As at 31 December 2012
|
|||||||||||||
Periods
|
Purchase quantities
|
Estimated unit costs
|
Purchase quantities
|
Estimated unit costs
|
||||||||||
(RMB)
|
(RMB)
|
|||||||||||||
A government-related
|
2013-2023 |
486.9 million
|
2.22/m | 3 |
486.9 million
|
1.63/m | 3 | |||||||
Enterprise
|
m3/year
|
m3/year
|
||||||||||||
Other suppliers
|
2013 |
205.2 BBtu/day
|
approximately
|
175.1 BBtu/day
|
approximately
|
|||||||||
2014 |
90.1 BBtu/day
|
100,000/BBtu
|
90.0 BBtu/day
|
100,000/BBtu
|
||||||||||
2015-2022 |
72.5 BBtu/day
|
* |
72.4 BBtu/day
|
* | ||||||||||
2023 |
72.4 BBtu/day
|
* |
72.4 BBtu/day
|
* | ||||||||||
2024-2028 |
49.9 BBtu/day
|
* |
49.9 BBtu/day
|
* |
|
BBtu:
|
Billion British Thermal Unit
|
|
*
|
As a subsidiary of the Company is not required to commit purchases of one of the contracts until 2014, no estimated unit cost information is available for daily purchase quantities of 42.4BBtu from 2014 to 2028.
|
25.
|
MATERIAL BUSINESS COMBINATION
|
Cash and cash equivalents
|
131,485 | |||
Property, plant and equipment
|
30,885 | |||
Land use rights
|
145,075 | |||
Other receivables
|
2,316 | |||
Payables and other liabilities
|
(9,761 | ) | ||
Total identifiable net assets
|
300,000 | |||
Non-controlling interests
|
(120,000 | ) | ||
Goodwill
|
– | |||
Consideration in cash
|
180,000 |
26.
|
SUBSEQUENT EVENT
|
HUANENG POWER INTERNATIONAL, INC.
|
|||
By
|
/s/ Du Daming
|
||
Name:
|
Du Daming
|
||
Title:
|
Company Secretary
|