As filed with
the Securities and Exchange Commission on April 28,
2009
|
£
|
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
|
OR
|
||
R
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2008
|
|
OR
|
||
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
OR
|
||
£
|
SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
|
For
the transaction period form ____________ to
__________
|
Title of Each
Class
|
Name
of each exchange
on which
registered
|
Ordinary
American Depositary
Shares
|
New
York Stock Exchange
|
Overseas
Listed Foreign Shares of RMB1.00
each
|
New
York Stock Exchange*
|
Domestic
Shares of RMB1.00
each
|
9,000,000,000
|
Overseas
Listed Foreign Shares of RMB1.00
each
|
3,055,383,440
|
Yes þ
|
No o
|
Yes o
|
No þ
|
Yes þ
|
No o
|
Large
accelerated filer þ
|
Accelerated
filer o
|
Non-accelerated
filer o
|
U.S.
GAAP o
|
International
Financial Reporting Standards as issued by the International Accounting
Standards Board þ
|
Other
o
|
Item
17 o
|
Item
18 o
|
Yes o
|
No þ
|
PART
I.
|
1
|
|||
ITEM
1
|
Identity
of Directors, Senior Management and Advisers
|
1
|
||
ITEM
2
|
Offer
Statistics and Expected Timetable
|
1
|
||
ITEM
3
|
Key
Information
|
1
|
||
A.
|
Selected
financial data
|
1
|
||
B.
|
Capitalization
and indebtedness
|
2
|
||
C.
|
Reasons
for the offer and use of proceeds
|
2
|
||
D.
|
Risk
factors
|
3
|
||
ITEM
4
|
Information
on the Company
|
9
|
||
A.
|
History
and development of the Company
|
9
|
||
B.
|
Business
overview
|
10
|
||
C.
|
Organizational
structure
|
19
|
||
D.
|
Property,
plants and equipment
|
21
|
||
ITEM
4A
|
Unresolved
Staff Comments
|
35
|
||
ITEM
5
|
Operating
and Financial Review and Prospects
|
35
|
||
A.
|
General
|
35
|
||
B.
|
Operating
results
|
37
|
||
C.
|
Financial
position
|
44
|
||
D.
|
Liquidity
and cash resources
|
45
|
||
E.
|
Trend
information
|
50
|
||
F.
|
Employee
benefits
|
52
|
||
G.
|
Guarantee
on loans and restricted assets
|
52
|
||
H.
|
Off-balance
sheet arrangements
|
52
|
||
I.
|
Performance
of significant investments and their prospects
|
52
|
||
J.
|
Tabular
disclosure of contractual obligations and commercial
commitments
|
53
|
||
K.
|
Goodwill
impairment
|
53
|
||
L.
|
Business
plan
|
53
|
||
ITEM
6
|
Directors,
Senior Management and Employees
|
54
|
||
A.
|
Directors,
members of the supervisory committee and senior management
|
54
|
||
B.
|
Compensation
for Directors, Supervisors and Executive Officers
|
58
|
||
C.
|
Board
practice
|
60
|
||
D.
|
Employees
|
60
|
||
E.
|
Share
ownership
|
61
|
||
ITEM
7
|
Major
Shareholders and Related Party Transactions
|
61
|
||
A.
|
Major
shareholders
|
61
|
||
B.
|
Related
party transactions
|
62
|
||
C.
|
Interests
of experts and counsel
|
65
|
||
ITEM
8
|
Financial
Information
|
65
|
||
A.
|
Consolidated
statements and other financial information
|
66
|
||
B.
|
Significant
changes
|
66
|
||
ITEM
9
|
The
Offer and Listing
|
66
|
||
A.
|
Offer
and listing details and markets
|
66
|
||
ITEM
10
|
Additional
Information
|
67
|
||
A.
|
Share
capital
|
67
|
||
B.
|
Memorandum
and articles of association
|
67
|
||
C.
|
Material
contracts
|
73
|
||
D.
|
Exchange
controls
|
74
|
||
E.
|
Taxation
|
74
|
||
F.
|
Dividends
and paying agents
|
78
|
||
G.
|
Statement
by experts
|
78
|
||
H.
|
Documents
on display
|
79
|
||
I.
|
Subsidiary
information
|
79
|
||
ITEM
11
|
Quantitative
and Qualitative Disclosures About Market Risk
|
79
|
||
ITEM
12
|
Description
of Securities Other than Equity Securities
|
82
|
||
PART
II.
|
83
|
|||
ITEM
13
|
Defaults,
Dividend Arrearages and Delinquencies
|
83
|
||
ITEM
14
|
Material
Modifications to the Rights of Security Holders and Use of
Proceeds
|
83
|
||
ITEM
15
|
Controls
and Procedures
|
83
|
||
ITEM
16
|
Reserved
|
83
|
ITEM
16A
|
Audit
Committee Financial Expert
|
83
|
|||
ITEM
16B
|
Code
of Ethics
|
84
|
|||
ITEM
16C
|
Principal
Accountant Fees and Services
|
84
|
|||
ITEM
16D
|
Exemptions
from the Listing Standards for Audit Committees
|
85
|
|||
ITEM
16E
|
Purchases
of Equity Securities by the Issuer and Affiliated
Purchasers
|
85
|
|||
ITEM
16F
|
Change
in Registrant's Certifying Accountant
|
85
|
|||
ITEM
16G
|
Corporate
Governance
|
85
|
|||
ITEM
17
|
Financial
Statements
|
87
|
|||
ITEM
18
|
Financial
Statements
|
87
|
|||
ITEM
19
|
Exhibit
|
87
|
|||
actual
generation
|
The
total amount of electricity generated by a power plant over a given period
of time.
|
auxiliary
power
|
Electricity
consumed by a power plant in the course
of
generation.
|
availability
factor
|
For
any period, the ratio (expressed as a percentage)
of
a power plant's available hours to the total number
of
hours in such period.
|
available
hours
|
For
a power plant for any period, the total number of hours in such period
less the total number of hours attributable to scheduled maintenance and
planned overhauls as well as to forced outages, adjusted for partial
capacity outage hours.
|
capacity
factor
|
The
ratio (expressed as a percentage) of the gross amount of electricity
generated by a power plant in a given period to the product of (i) the
number of hours in the given period multiplied by (ii) the power plant's
installed capacity.
|
demand
|
For
an integrated power system, the amount of power demanded by consumers of
energy at any point in time.
|
dispatch
|
The
schedule of production for all the generating units on a power system,
generally varying from moment to moment to match production with power
requirements. As a verb, to dispatch a plant means to direct the plant to
operate.
|
GW
|
Gigawatt.
One million kilowatts.
|
GWh
|
Gigawatt-hour.
One million kilowatt-hours. GWh is typically used as a measure for the
annual energy production of large power plants.
|
installed
capacity
|
The
manufacturers' rated power output of a generating unit or a power plant,
usually denominated in MW.
|
kV
|
Kilovolt.
One thousand volts.
|
kW
|
Kilowatt.
One thousand watts.
|
kWh
|
Kilowatt-hour.
The standard unit of energy used in the electric power industry. One
kilowatt-hour is the amount of energy that would be produced by a
generator producing one thousand watts for one hour.
|
MVA
|
Million
volt-amperes. A unit of measure used to express the capacity of electrical
transmission equipment such as transformers.
|
MW
|
Megawatt.
One million watts. The installed capacity of power plants is generally
expressed in MW.
|
MWh
|
Megawatt-hour.
One thousand kilowatt-hours.
|
peak
load
|
The
maximum demand on a power plant or power system during a specific period
of time.
|
planned
generation
|
An
annually determined target gross generation level for each of our
operating power plants used as the basis for determining planned
output.
|
total
output
|
The
actual amount of electricity sold by a power plant in a particular year,
which equals total generation less auxiliary power.
|
transmission
losses
|
Electric
energy that is lost in transmission lines and therefore is unavailable for
use.
|
A.
|
Selected
financial data
|
Year
Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
2008
|
|||||||||||||||||||
RMB
and US Dollars in thousands except per share data
|
(RMB)
|
(RMB)
|
(RMB)
|
(RMB)
|
(RMB)
|
(US$)(1)
|
||||||||||||||||||
Income
Statement Data
|
||||||||||||||||||||||||
IFRS
|
||||||||||||||||||||||||
Operating
revenue
|
30,150,602 | 40,190,004 | 44,301,403 | 49,767,849 | 67,563,815 | 9,885,555 | ||||||||||||||||||
Sales
tax
|
(32,324 | ) | (113,475 | ) | (148,057 | ) | (139,772 | ) | (106,385 | ) | (15,565 | ) | ||||||||||||
Operating
expenses
|
(23,200,088 | ) | (33,067,563 | ) | (35,594,935 | ) | (41,705,766 | ) | (68,713,379 | ) | (10,053,753 | ) | ||||||||||||
Profit/
(Loss) from operations
|
6,918,190 | 7,008,966 | 8,558,411 | 7,922,311 | (1,255,949 | ) | (183,763 | ) | ||||||||||||||||
Total
financial expenses, net
|
(739,784 | ) | (1,124,391 | ) | (1,471,304 | ) | (1,874,461 | ) | (3,624,421 | ) | (530,305 | ) | ||||||||||||
Investment
income
|
20,554 | 60,872 | 28,415 | 585,379 | 51,061 | 7,471 | ||||||||||||||||||
Gain/ (Loss) on fair value changes
|
- | - | 100,180 | 87,132 | (54,658 | ) | (7,997 | ) | ||||||||||||||||
Share
of profits of associates
|
312,037 | 644,376 | 790,629 | 586,323 | 72,688 | 10,635 | ||||||||||||||||||
Other
income, net
|
18,666 | 2,385 | 10,442 | 12,617 | 19,723 | 2,886 | ||||||||||||||||||
Profit/
(Loss) before tax
|
6,529,663 | 6,592,208 | 8,016,773 | 7,319,301 | (4,791,556 | ) | (701,073 | ) | ||||||||||||||||
Income
tax (expense)/benefit
|
(948,734 | ) | (1,044,297 | ) | (1,127,699 | ) | (838,270 | ) | 239,723 | 35,075 | ||||||||||||||
Profit/
(Loss) for the year
|
5,580,929 | 5,547,911 | 6,889,074 | 6,481,031 | (4,551,833 | ) | (665,998 | ) | ||||||||||||||||
Attributable
to:
|
||||||||||||||||||||||||
Equity
holders of the Company
|
5,323,876 | 4,871,794 | 6,071,154 | 6,161,127 | (3,937,688 | ) | (576,140 | ) | ||||||||||||||||
Minority
interests
|
257,053 | 676,117 | 817,920 | 319,904 | (614,145 | ) | (89,858 | ) | ||||||||||||||||
Basic
earnings/(loss) per share
|
0.44 | 0.40 | 0.50 | 0.51 | (0.33 | ) | (0.05 | ) | ||||||||||||||||
Diluted
earnings/(loss) per share
|
0.44 | 0.40 | 0.50 | 0.51 | (0.33 | ) | (0.05 | ) |
As
of December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
2008
|
|||||||||||||||||||
RMB
and US Dollars in thousands
|
(RMB)
|
(RMB)
|
(RMB)
|
(RMB)
|
(RMB)
|
(US$)(1)
|
||||||||||||||||||
Balance
Sheet Data
|
||||||||||||||||||||||||
IFRS
|
||||||||||||||||||||||||
Current
assets
|
9,653,653 | 12,063,175 | 13,564,516 | 18,551,059 | 20,018,177 | 2,928,946 | ||||||||||||||||||
Property, plant and equipment, net
|
57,780,410 | 78,997,297 | 90,444,225 | 90,125,919 | 116,737,198 | 17,080,326 | ||||||||||||||||||
Available-for-sale
financial assets
|
254,990 | 1,033,225 | 1,458,759 | 3,462,158 | 1,524,016 | 222,985 | ||||||||||||||||||
Investments
in associates
|
4,328,307 | 4,593,984 | 5,418,213 | 8,731,490 | 8,758,235 | 1,281,455 | ||||||||||||||||||
Land use rights and other non-current assets
|
1,771,916 | 2,016,144 | 2,282,884 | 2,658,583 | 3,643,431 | 533,087 | ||||||||||||||||||
Power generation licence
|
- | - | - | - | 3,811,906 | 557,737 | ||||||||||||||||||
Deferred
income tax assets
|
97,539 | 64,075 | 98,429 | 211,654 | 316,699 | 46,338 | ||||||||||||||||||
Goodwill
|
376,726 | 671,796 | 671,796 | 555,266 | 11,108,096 | 1,625,274 | ||||||||||||||||||
Less:
negative goodwill
|
(1,483,670 | ) | -- | -- | -- | -- | -- | |||||||||||||||||
Total
assets
|
72,779,871 | 99,439,696 | 113,938,822 | 124,296,129 | 165,917,758 | 24,276,148 | ||||||||||||||||||
Current
liabilities
|
(16,732,953 | ) | (23,107,142 | ) | (26,842,684 | ) | (31,376,561 | ) | (52,486,200 | ) | (7,679,484 | ) | ||||||||||||
Non-current
liabilities
|
(16,515,006 | ) | (30,188,367 | ) | (36,487,446 | ) | (40,839,926 | ) | (70,871,605 | ) | (10,369,532 | ) | ||||||||||||
Total
liabilities
|
(33,247,959 | ) | (53,295,509 | ) | (63,330,130 | ) | (72,216,487 | ) | (123,357,805 | ) | (18,049,016 | ) | ||||||||||||
Net
assets
|
39,531,912 | 46,144,187 | 50,608,692 | 52,079,642 | 42,559,953 | 6,227,132 | ||||||||||||||||||
Total
equity
|
39,531,912 | 46,144,187 | 50,608,692 | 52,079,642 | 42,559,953 | 6,227,132 |
Year
Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
2008
|
|||||||||||||||||||
RMB
and US Dollars in thousands except per share data
|
(RMB)
|
(RMB)
|
(RMB)
|
(RMB)
|
(RMB)
|
(US$)(1)
|
||||||||||||||||||
Cash
Flow Data
|
||||||||||||||||||||||||
IFRS
|
||||||||||||||||||||||||
Purchase of property, plant and equipment
|
(9,877,553 | ) | (13,842,293 | ) | (15,998,575 | ) | (14,223,310 | ) | (27,893,520 | ) | (4,081,222 | ) | ||||||||||||
Net cash provided by operating activities
|
9,132,800 | 10,652,419 | 14,005,841 | 12,078,833 | 5,185,893 | 758,771 | ||||||||||||||||||
Net cash used in investing activities
|
(13,650,285 | ) | (15,413,369 | ) | (15,915,542 | ) | (16,257,355 | ) | (47,957,065 | ) | (7,016,806 | ) | ||||||||||||
Net cash (used in) / provided by financing activities
|
2,679,588 | 5,119,559 | 2,473,002 | 8,287,893 | 41,255,291 | 6,036,240 | ||||||||||||||||||
Other
Financial Data
|
||||||||||||||||||||||||
IFRS
|
||||||||||||||||||||||||
Dividend declared per share
|
0.25 | 0.25 | 0.28 | 0.30 | 0.10 | 0.01 | ||||||||||||||||||
Number of ordinary shares (’000)
|
12,055,383 | 12,055,383 | 12,055,383 | 12,055,383 | 12,055,383 | 12,055,383 |
_____________
|
|
Note:
|
|
(1)
|
The
US Dollar data has been translated from RMB solely for convenience at the
PBOC Rate on December 31, 2008 of US$1.00 to RMB6.8346. See
“Item 10 Additional Information — Exchange controls for more information
on exchange rates between RMB and US
Dollars”.
|
B.
|
Capitalization
and indebtedness
|
C.
|
Reasons
for the offer and use of proceeds
|
D.
|
Risk
factors
|
A.
|
History
and development of the Company
|
B.
|
Business
overview
|
Year
Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
|||||||||||||||||||
Average
Tariff
(1)
|
Average
Tariff
(1)
|
Average
Tariff
(1)
|
Average
Tariff
(1)
|
Average
Tariff
(1)
|
Approved
Tariff
(1)
|
|||||||||||||||||||
Dalian
Power
Plant
|
283.62 | 317.58 | 315.95 | 323.27 | 338.05 | 361.70 | ||||||||||||||||||
Dandong
Power
Plant
|
289.05 | 301.67 | 322.76 | 330.38 | 340.82 | 363.50 | ||||||||||||||||||
Yingkou
Power
Plant
|
315.48 | 360.09 | 334.47 | 343.37 | 360.45 | 375.50 | ||||||||||||||||||
393.80 | ||||||||||||||||||||||||
Fuzhou
Power
Plant
|
365.00 | 367.06 | 342.46 | 369.61 | 401.22 | 429.80 | ||||||||||||||||||
Shang’an Power Plant | 303.25 | 319.91 | 340.22 | 344.47 | 356.52 | 387.30 | ||||||||||||||||||
402.30 | ||||||||||||||||||||||||
371.80 | ||||||||||||||||||||||||
Nantong
Power
Plant
|
325.18 | 343.00 | 344.92 | 339.47 | 385.53 | 425.00 | ||||||||||||||||||
Nanjing
Power
Plant
|
321.67 | 340.65 | 345.56 | 342.99 | 375.47 | 425.00 | ||||||||||||||||||
Taicang
Power Plant
|
||||||||||||||||||||||||
Phase
I
|
341.10 | 360.00 | 361.64 | 359.69 | 401.60 | 439.00 | ||||||||||||||||||
Phase
II
|
-- | -- | 371.50 | 358.08 | 396.48 | 439.00 | ||||||||||||||||||
Huaiyin
Power Plant
|
||||||||||||||||||||||||
Phase
I
|
330.88 | 346.43 | 366.44 | -- | -- | 424.5 | ||||||||||||||||||
Phase
II
|
-- | 373.77 | 362.26 | 357.47 | 396.80 | 435.8 | ||||||||||||||||||
Phase
III
|
-- | -- | 362.26 | 357.47 | 396.80 | |||||||||||||||||||
Shidongkou
I
|
285.43 | 320.30 | 358.85 | 369.54 | 377.35 | 435.60 | ||||||||||||||||||
420.60 | ||||||||||||||||||||||||
Shidongkou
II
|
342.56 | 357.60 | 357.08 | 347.93 | 377.04 | 425.60 |
Year
Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
|||||||||||||||||||
Average
Tariff
(1)
|
Average
Tariff
(1)
|
Average
Tariff
(1)
|
Average
Tariff
(1)
|
Average
Tariff
(1)
|
Approved
Tariff
(1)
|
|||||||||||||||||||
Shantou
Power Plant
|
||||||||||||||||||||||||
Phase
I
|
446.86 | 462.83 | 487.55 | 497.7 | 522.42 | 548.71 | ||||||||||||||||||
Phase
II
|
-- | -- | 446.54 | 453.2 | 472.96 | 504.20 | ||||||||||||||||||
Dezhou
Power Plant(2)
(Phases
I, II &
III)
|
332.58 | 349.56 | 360.68 | 360.45 | 394.08 | 408.90 | ||||||||||||||||||
423.90 | ||||||||||||||||||||||||
Jining
Power Plant(2)
|
||||||||||||||||||||||||
Phases
I,
II
|
299.89 | 323.41 | 342.42 | 310.90 | 356.56 | 397.40 | ||||||||||||||||||
Phase
III
|
299.89 | 323.41 | 342.42 | 370.90 | 384.29 | 413.40 | ||||||||||||||||||
Weihai
Power
Plant
|
394.06 | 398.93 | 402.99 | 403.00 | 422.78 | 448.50 | ||||||||||||||||||
Xindian
Power Plant(2)
|
||||||||||||||||||||||||
Phases
I, II
|
320.83 | 337.25 | 350.54 | 379.71 | 371.86 | 413.40 | ||||||||||||||||||
Phase
III
|
-- | -- | 351.90 | 356.01 | 370.99 | 397.40 | ||||||||||||||||||
Changxing Power Plant | 351.94 | 392.83 | 408.90 | 428.16 | 450.86 | 480.50 | ||||||||||||||||||
Yushe
Power Plant
|
||||||||||||||||||||||||
Phase
I
|
282.10 | 319.37 | 316.16 | 332.53 | 345.77 | 359.40 | ||||||||||||||||||
Phase
II
|
282.10 | 256.00 | 268.21 | 274.16 | 289.32 | 315.30 | ||||||||||||||||||
Qinbei
Power
Plant
|
-- | 299.77 | 311.20 | 311.86 | 339.85 | 394.20 | ||||||||||||||||||
Jinggangshan
Power Plant
|
-- | 353.90 | 369.87 | 366.94 | 379.99 | 413.00 | ||||||||||||||||||
Yueyang Power Plant | ||||||||||||||||||||||||
Phase
I
|
316.52 | 341.34 | 360.88 | 366.49 | 388.53 | 425.50 | ||||||||||||||||||
Phase
II
|
-- | -- | 363.38 | 378.91 | 398.62 | 440.50 | ||||||||||||||||||
Luohuang
Power
Plant
|
||||||||||||||||||||||||
Phases
I,
II
|
286.74 | 300.90 | 314.87 | 308.65 | 338.27 | 366.50 | ||||||||||||||||||
Phase
III
|
-- | -- | 337.30 | 337.30 | 354.89 | 379.30 | ||||||||||||||||||
Pingliang Power Plant | -- | 211.43 | 216.27 | 223.31 | 238.89 | 275.10 | ||||||||||||||||||
Sichuan
Hydropower
|
-- | 262.52 | 266.32 | -- | -- | -- | ||||||||||||||||||
Yuhuan
Power
Plant
|
-- | -- | 360.95 | 415.05 | 444.92 | 465.70 | ||||||||||||||||||
Rizhao
Power Plant Phase II
|
-- | -- | -- | -- | -- | 382.40 | ||||||||||||||||||
Jinling Power Plant | -- | -- | -- | 481.99 | 528.73 | -- |
Notes:
|
(1)
|
Includes
value-added tax.
|
(2)
|
For
the 2009 approved tariff, some power plants may have several different
approved tariffs which will be applied to the different generating units
of such plants.
|
(i)
|
regular
checks and routine maintenance are carried out throughout the period
during which generating unit is in operation;
|
|
(ii)
|
a
small-scale servicing is performed every year, which takes approximately
20 days;
|
|
(iii)
|
a
medium-scale check-up is carried out between the two overhauls, the length
of which depends on the actual condition of the generating unit at the
time of the check up; and
|
|
(iv)
|
a
full-scale overhaul is conducted at the end of each operating cycle, which
takes approximately 60 days.
|
C.
|
Organizational
structure
|
Notes: |
(1)
|
Huaneng
Group indirectly holds 100% equity interests in Pro-Power Investment
Limited through its wholly-owned subsidiary, China
Hua Neng Hong Kong Company Limited, and Pro-Power Investment Limited in
turn holds 5% equity interests in HIPDC. As a result, Huaneng Group
indirectly holds additional 5% equity interests in
HIPDC.
|
|
(2)
|
Of
the 8.92% equity interest, 8.75% was directly held by Huaneng Group, and
the remaining 0.17% was held by Huaneng Group through its wholly-owned
subsidiary,China Hua Neng Hong Kong Company
Limited.
|
D.
|
Property,
plants and equipment
|
Plant
or Expansion
|
Province/
Municipality
|
Actual
In-service
Date
|
Current
Installed
Capacity
|
Ownership
|
Attributable
Capacity
|
Type
of
Fuel
|
||||||||
(Names
as defined below)
|
(MW)
|
%
|
MW
|
|||||||||||
Dalian
|
Phase
I
|
Liaoning
|
Unit
I: Sep. 1988
|
2 x
350
|
100%
|
700
|
Coal
|
|||||||
Unit
II: Dec. 1988
|
||||||||||||||
Phase
II
|
Unit
III: Jan. 1999
|
2 x
350
|
100%
|
700
|
Coal
|
|||||||||
Unit
IV: Jan. 1999
|
||||||||||||||
Dandong
|
Liaoning
|
Unit
I: Jan. 1999
|
2 x
350
|
100%
|
700
|
Coal
|
||||||||
Unit
II: Jan. 1999
|
||||||||||||||
Yingkou |
Phase
I
|
Liaoning
|
Unit
I: Jan. 1996
|
2 x
320
|
100%
|
640
|
Coal
|
|||||||
Unit
II: Dec. 1996
|
||||||||||||||
Phase II | Unit III: Aug. 2007 |
1 x
600
|
100%
|
600
|
Coal
|
|||||||||
Unit
IV: Oct. 2007
|
1 x
600
|
100%
|
600
|
Coal
|
||||||||||
Fuzhou
|
Phase
I
|
Fujian
|
Unit
I: Sep. 1988
|
2 x
350
|
100%
|
700
|
Coal
|
|||||||
Unit
II: Dec. 1988
|
||||||||||||||
Phase
II
|
Unit
III: Oct. 1999
|
2 x
350
|
100%
|
700
|
Coal
|
|||||||||
Unit
IV: Oct. 1999
|
||||||||||||||
Shang’an
|
Phase
I
|
Hebei
|
Unit
I: Aug. 1990
|
2 x
350
|
100%
|
700
|
Coal
|
|||||||
Unit
II: Dec. 1990
|
||||||||||||||
Phase
II
|
Unit
III: Oct. 1997
|
2 x
300
|
100%
|
600
|
Coal
|
|||||||||
Unit
IV: Oct. 1997
|
||||||||||||||
Phase
III
|
Unit
V: Jul 2008
|
2 x
600
|
100%
|
1200
|
Coal
|
|||||||||
Unit
VI: Aug 2008
|
|
|||||||||||||
Nantong
|
Phase
I
|
Jiangsu
|
Unit
I: Sep. 1989
|
2 x
352
|
100%
|
704
|
Coal
|
|||||||
Unit
II: Mar. 1990
|
||||||||||||||
Phase
II
|
Unit
III: Jul. 1999
|
2 x
350
|
100%
|
700
|
Coal
|
|||||||||
Unit
IV: Oct. 1999
|
||||||||||||||
Nanjing
|
Jiangsu
|
Unit
I: Mar. 1994
|
2 x
320
|
100%
|
640
|
Coal
|
||||||||
Unit
II: Oct. 1994
|
||||||||||||||
Taicang(4)
|
Phase
I
|
Jiangsu
|
Unit
I: Dec. 1999
|
2 x
320
|
75%
|
480
|
Coal
|
|||||||
Unit
II: Apr. 2000
|
||||||||||||||
Phase
II
|
Unit
III: Jan. 2006
|
2 x
630
|
75%
|
945
|
Coal
|
|||||||||
Unit
IV: Feb. 2006
|
|
|||||||||||||
Huaiyin
(3)
|
Phase
I
|
Jiangsu
|
Unit
II: Aug. 1994
|
1 x
220
|
100%
|
220
|
Coal
|
|||||||
Phase
II
|
Unit
III: Jan. 2005
|
2 x
330
|
63.64%
|
420
|
Coal
|
|||||||||
Unit
IV: Mar. 2005
|
||||||||||||||
Phase
III
|
Unit
V: May 2006
|
2 x
330
|
63.64%
|
420
|
Coal
|
|||||||||
Unit
VI: Sep. 2006
|
||||||||||||||
Shidongkou
I
|
Shanghai
|
Unit
I: Feb. 1988
|
1 x
300
|
100%
|
1,270
|
Coal
|
||||||||
Unit
II: Dec. 1988
|
1 x
325
|
|||||||||||||
Unit
III: Sep. 1989
|
1 x
325
|
|||||||||||||
Unit
IV: May 1990
|
1 x
320
|
|||||||||||||
Shidongkou
II
|
Shanghai
|
Unit
I: Jun. 1992
|
2 x
600
|
100%
|
1,200
|
Coal
|
||||||||
Unit
II: Dec. 1992
|
|
|||||||||||||
Shanghai
CCGT
|
Shanghai
|
Unit
I: May 2006
|
3 x
390
|
70%
|
819
|
Gas
|
||||||||
Unit
II: Jun. 2006
|
||||||||||||||
Unit
III: Jul. 2006
|
||||||||||||||
Shantou
|
Phase
I
|
Guangdong
|
Unit
I: Jan. 1997
|
2 x
300
|
100%
|
600
|
Coal
|
|||||||
Unit
II: Jan. 1997
|
||||||||||||||
Phase
II
|
Unit
III: Oct. 2005
|
1 x
600
|
100%
|
600
|
Coal
|
|||||||||
Dezhou(1)
|
Shandong
|
Units
I: 1992
|
1 x
330
|
100%
|
650
|
Coal
|
||||||||
Unit
II: 1992
|
1 x
320
|
|||||||||||||
Units
III: Jun. 1994
|
1 x
300
|
100%
|
300
|
Coal
|
||||||||||
Unit
IV: May 1995
|
1 x
320
|
100%
|
320
|
Coal
|
||||||||||
Units
V: Jun. 2002
|
2 x
700
|
100%
|
1,400
|
Coal
|
Plant
or Expansion
|
Province/
Municipality
|
Actual
In-service
Date
|
Current
Installed
Capacity
|
Ownership
|
Attributable
Capacity
|
Type
of
Fuel
|
||||||||
(Names
as defined below)
|
(MW)
|
%
|
MW
|
|||||||||||
Unit
VI: Oct 2002
|
||||||||||||||
Jining
|
Shandong
|
Unit
IV: 1978
|
1 x
110
|
100%
|
110
|
Coal
|
||||||||
Unit
V: Jul. 2003
|
2 x
135
|
100%
|
270
|
Coal
|
||||||||||
Unit
VI: Aug. 2003
|
||||||||||||||
Rizhao | Phase II |
Shandong
|
Unit
III: Dec 2008
|
2 x
680
|
100%
|
1360
|
Coal
|
|||||||
Unit
IV: Dec 2008
|
||||||||||||||
Weihai(2)
|
Shandong
|
Units
III: Mar. 1998
|
2 x
320
|
60%
|
384
|
Coal
|
||||||||
Unit
IV: Nov. 1998
|
||||||||||||||
Xindian
|
Shandong
|
Unit
III: Jan 2002
|
2 x
225
|
100%
|
450
|
Coal
|
||||||||
Unit
IV: Dec 2001
|
||||||||||||||
Unit
V: Sep 2006
|
2 x
300
|
95%
|
570
|
Coal
|
||||||||||
Unit
VI: Nov. 2006
|
||||||||||||||
Changxing
|
Zhejiang
|
Unit
I: Jan. 1992
|
1 x
135
|
100%
|
260
|
Coal
|
||||||||
Unit
II: Aug. 1992
|
1 x
125
|
|||||||||||||
Yuhuan | Phase I |
Zhejiang
|
Unit
I: Nov. 2006
|
2
x 1000
|
100%
|
2000
|
Coal
|
|||||||
Unit
II: Dec. 2006
|
||||||||||||||
Phase II |
Unit
III: Nov. 2007
|
2 x
1000
|
100%
|
2000
|
Coal
|
|||||||||
Unit
IV: Nov. 2007
|
||||||||||||||
Tuas | Phase I |
Singapore
|
Unit
I: Mar. 1999
|
2 x
600
|
100%
|
1200
|
Oil
|
|||||||
Unit
II: Dec 1999
|
||||||||||||||
Phase II |
Unit
III: Nov 2001
|
4 x 367.5
|
100%
|
1470
|
Natural
Gas
|
|||||||||
Unit
IV: Jan 2002
|
||||||||||||||
Unit
V: Feb 2005
|
||||||||||||||
Unit
VI: Sep 2005
|
||||||||||||||
Yushe | Phase I | Shanxi | Unit I: Jun. 1994 |
2 x
100
|
60%
|
120
|
Coal
|
|||||||
Unit
III: Dec 1994
|
||||||||||||||
Phase II |
Unit
IV: Oct. 2004
|
2 x
300
|
60%
|
360
|
Coal
|
|||||||||
Unit
II: Nov. 2004
|
||||||||||||||
Qinbei | Phase I |
Henan
|
Unit
I: Dec. 2004
|
2 x
600
|
60%
|
720
|
Coal
|
|||||||
Unit
II: Dec. 2004
|
||||||||||||||
Phase II |
Unit
III: Nov. 2007
|
2 x
600
|
60%
|
720
|
Coal
|
|||||||||
Unit
IV: Nov. 2007
|
||||||||||||||
Jinggangshan
|
Jiangxi
|
Unit
I: Dec. 2000
|
2 x
300
|
100%
|
600
|
Coal
|
||||||||
Unit
II: Aug. 2001
|
||||||||||||||
Yueyang | Phase I |
Hunan
|
Unit
I: Aug. 1991
|
2 x 362.5
|
55%
|
398.75
|
Coal
|
|||||||
Unit
II: Sep. 1991
|
||||||||||||||
Phase II |
Unit
III: Mar. 2006
|
2 x
300
|
55%
|
330
|
Coal
|
|||||||||
Unite
IV: May 2006
|
||||||||||||||
Luohuang | Phase I |
Chongqing
|
Unit
I: Sep. 1991
|
2 x
360
|
60%
|
432
|
Coal
|
|||||||
Unit
II: Feb. 1992
|
||||||||||||||
Phase II |
Unit
III: Dec. 1998
|
2 x
360
|
60%
|
432
|
Coal
|
|||||||||
Unit
IV: Dec. 1998
|
||||||||||||||
Phase III |
Unit
V: Dec. 2006
|
2 x
600
|
60%
|
720
|
Coal
|
|||||||||
Unit
VI: Jan. 2007
|
||||||||||||||
Pingliang
|
Gansu
|
Unit
I: Sep. 2000
|
4 x
300
|
65%
|
780
|
Coal
|
||||||||
Unit
II: Jun. 2001
|
||||||||||||||
Unit
III: Jun. 2003
|
||||||||||||||
Unit
IV: Nov. 2003
|
||||||||||||||
Jinling | Phase I |
Jiangsu
|
Unit
I: Dec. 2006
|
2 x
390
|
60%
|
468
|
Gas
|
|||||||
Unit
II: Mar. 2007
|
(1)
|
The
installed capacity of Unit IV of Dezhou was expanded to 320 MW in January
2009.
|
(2)
|
The
Unit I and Unit II of Weihai were shut down in November and December 2008
respectively. The installed capacities of Unit III and Unit IV of Weihai
were expanded to 320 MW in January
2009.
|
(3)
|
The
Company acquired 10% equity of the phase I of Huaiyin at the end of 2008
and the attributable capacity was expanded to 220
MW.
|
(4)
|
The
installed capacities of Unit I, Unit II, Unit III and Unit IV of Taicang
were expanded to 320MW, 320 MW, 630 MW and 630 MW respectively in April
2008.
|
Availability
factor (%)
|
Capacity
factor (%)
|
|||||||||||||||||||||||
2006
|
2007
|
2008
|
2006
|
2007
|
2008
|
|||||||||||||||||||
Dalian
|
93.96 | 97.31 | 92.86 | 81.76 | 83.39 | 74.01 | ||||||||||||||||||
Dandong
|
93.93 | 96.39 | 90.35 | 80.66 | 80.58 | 68.45 | ||||||||||||||||||
Yingkou
|
92.04 | 95.97 | 91.19 | 87.22 | 73.07 | 66.42 | ||||||||||||||||||
Fuzhou
|
98.37 | 93.80 | 91.53 | 68.02 | 66.34 | 66.11 | ||||||||||||||||||
Shang’an
|
91.76 | 92.42 | 94.05 | 69.38 | 63.36 | 53.18 | ||||||||||||||||||
Nantong
|
94.32 | 92.93 | 92.45 | 62.28 | 67.58 | 67.53 | ||||||||||||||||||
Nanjing
|
93.76 | 92.61 | 85.57 | 61.56 | 65.25 | 61.70 | ||||||||||||||||||
Taicang
|
93.22 | 93.35 | 89.60 | 63.94 | 68.60 | 65.71 | ||||||||||||||||||
Huaiyin
|
94.16 | 93.87 | 91.89 | 60.27 | 55.38 | 54.84 | ||||||||||||||||||
Shidongkou
I
|
92.22 | 89.06 | 89.70 | 70.15 | 64.35 | 60.79 | ||||||||||||||||||
Shidongkou
II
|
97.21 | 90.58 | 89.86 | 70.45 | 75.70 | 71.47 | ||||||||||||||||||
Shantou
|
92.51 | 88.74 | 88.13 | 80.35 | 70.38 | 66.60 | ||||||||||||||||||
Dezhou
|
92.22 | 92.21 | 90.62 | 62.48 | 56.95 | 60.24 | ||||||||||||||||||
Jining
|
94.37 | 96.08 | 89.15 | 65.61 | 59.48 | 68.61 | ||||||||||||||||||
Weihai
|
95.18 | 96.51 | 93.58 | 59.50 | 54.73 | 60.96 | ||||||||||||||||||
Xindian
|
96.21 | 85.62 | 92.42 | 60.93 | 52.03 | 45.98 | ||||||||||||||||||
Changxing
|
95.33 | 91.18 | 89.68 | 78.25 | 70.37 | 66.38 | ||||||||||||||||||
Yushe
|
93.16 | 94.48 | 88.04 | 79.45 | 81.22 | 70.45 | ||||||||||||||||||
Qinbei
|
90.59 | 96.72 | 97.51 | 66.84 | 64.96 | 49.87 | ||||||||||||||||||
Jinggangshan
|
92.74 | 91.67 | 92.12 | 68.09 | 67.10 | 60.76 | ||||||||||||||||||
Yueyang
|
95.14 | 93.24 | 86.64 | 60.39 | 58.14 | 51.69 | ||||||||||||||||||
Luohuang
|
90.88 | 91.30 | 89.28 | 69.93 | 49.62 | 49.62 | ||||||||||||||||||
Pingliang
|
93.08 | 94.97 | 92.41 | 75.48 | 77.15 | 68.31 | ||||||||||||||||||
Yuhuan
|
- | 94.23 | 90.32 | - | 60.05 | 55.33 | ||||||||||||||||||
Rizhao
II
|
-- | - | 8.41 | - | - | 69.14 |
A.
|
General
|
2008
|
2007
|
|||
Port
facilities
|
20-40
years
|
N/A
|
||
Buildings
|
8-35
years
|
15-35
years
|
||
Electric
utility plant in service
|
5-35
years
|
7-35
years
|
||
Transportation
facilities
|
6-14
years
|
6-15
years
|
||
Others
|
3-18
years
|
4-18
years
|
B.
|
Operating
results
|
For
the Year Ended December 31
|
||||||||||||
2008
|
2007
|
Increased/
(Decreased)
|
||||||||||
RMB’000
|
RMB’000
|
%
|
||||||||||
Operating
revenue
|
67,563,815 | 49,767,849 | 35.76 | |||||||||
Sales
tax
|
(106,385 | ) | (139,772 | ) | (23.89 | ) | ||||||
Operating
expenses
|
||||||||||||
Fuel
|
(49,810,275 | ) | (27,790,310 | ) | 79.24 | |||||||
Maintenance
|
(1,702,274 | ) | (1,534,016 | ) | 10.97 | |||||||
Depreciation
|
(7,718,773 | ) | (7,225,964 | ) | 6.82 | |||||||
Labor
|
(3,164,613 | ) | (2,786,109 | ) | 13.59 | |||||||
Service fees on transmission and transformer facilities of
HIPDC
|
- | (140,771 | ) | |||||||||
Purchase of electricity
|
(2,726,028 | ) | - | |||||||||
Others
|
(3,591,416 | ) | (2,228,596 | ) | 61.15 | |||||||
Total
operating expense
|
(68,713,379 | ) | (41,705,766 | ) | 64.76 | |||||||
(Loss)/Profit
from operations
|
(1,255,949 | ) | 7,922,311 | (115.85 | ) | |||||||
Financial
expenses
|
||||||||||||
Interest
income
|
83,522 | 53,527 | 56.04 | |||||||||
Interest
expense
|
(4,064,779 | ) | (2,132,122 | ) | 90.64 | |||||||
Exchange gain and bank charges , net
|
356,836 | 204,134 | 74.80 | |||||||||
Total
financial expenses, net
|
(3,624,421 | ) | (1,874,461 | ) | 93.36 | |||||||
Share
of profits of associates
|
72,688 | 586,323 | (87.60 | ) | ||||||||
(Loss)/Gain
on fair value changes
|
(54,658 | ) | 87,132 | (162.73 | ) | |||||||
Investment
income
|
51,061 | 585,379 | (91.28 | ) | ||||||||
Other
income, net
|
19,723 | 12,617 | 56.32 | |||||||||
(Loss)/Profit
before income tax expense
|
(4,791,556 | ) | 7,319,301 | (165.46 | ) | |||||||
Income
tax benefit/(expense)
|
239,723 | (838,270 | ) | (128.60 | ) | |||||||
(Loss)/Profit
for the year
|
(4,551,833 | ) | 6,481,031 | (170.23 | ) | |||||||
Attributable
to:
|
||||||||||||
Equity
holders of the Company
|
(3,937,688 | ) | 6,161,127 | (163.91 | ) | |||||||
Minority
interests
|
(614,145 | ) | 319,904 | (291.98 | ) | |||||||
(4,551,833 | ) | 6,481,031 | (170.23 | ) |
Domestic
Power Plant
|
Power
generation in 2008
|
Power
generation in 2007
|
Change
|
|||||||||
Dalian
|
9.102 | 10.227 | -11.00 | % | ||||||||
Fuzhou
|
8.129 | 8.136 | -0.09 | % | ||||||||
Nantong
|
8.329 | 8.345 | -0.19 | % | ||||||||
Shang’an
|
9.299 | 7.216 | 28.87 | % | ||||||||
Shidongkou
II
|
7.534 | 7.957 | -5.32 | % | ||||||||
Dezhou
|
14.022 | 13.22 | 6.07 | % | ||||||||
Shidongkou
I
|
6.757 | 6.99 | -3.33 | % | ||||||||
Shantou
Coal-fired
|
7.020 | 7.408 | -5.24 | % | ||||||||
Dandong
|
4.209 | 4.941 | -14.81 | % | ||||||||
Nanjing
|
3.469 | 3.658 | -5.17 | % | ||||||||
Jining
|
2.290 | 2.579 | -11.21 | % | ||||||||
Changxing
|
1.516 | 1.603 | -5.43 | % | ||||||||
Weihai
|
4.495 | 4.075 | 10.31 | % | ||||||||
Taicang
|
10.389 | 10.817 | -3.96 | % | ||||||||
Huaiyin
|
7.458 | 8.539 | -12.66 | % | ||||||||
Yuhuan
|
19.442 | 11.772 | 65.15 | % | ||||||||
Xindian
|
4.241 | 4.785 | -11.37 | % | ||||||||
Yushe
|
4.951 | 5.692 | -13.02 | % | ||||||||
Qinbei
|
10.514 | 7.12 | 47.67 | % | ||||||||
Luohuang
|
11.506 | 11.241 | 2.36 | % | ||||||||
Shanghai
CCGT
|
0.598 | 0.533 | 12.20 | % | ||||||||
Yueyang
|
6.016 | 6.748 | -10.85 | % | ||||||||
Yingkou
|
10.735 | 6.207 | 72.95 | % | ||||||||
Jinggangshan
|
3.202 | 3.527 | -9.21 | % | ||||||||
Pingliang
|
7.201 | 8.11 | -11.21 | % | ||||||||
Nanjing
Jinling
|
2.204 | 2.242 | -1.69 | % |
Average tariff rate (VAT
inclusive) (RMB/MWh)
|
||||||||||||
Power
Plant
|
2007
|
2008
|
Change
|
|||||||||
Dalian
|
323.27 | 338.05 | 4.57 | % | ||||||||
Fuzhou
|
369.61 | 401.22 | 8.55 | % | ||||||||
Nantong
|
339.47 | 385.53 | 13.57 | % | ||||||||
Shang’an
|
344.47 | 356.52 | 3.50 | % | ||||||||
Shantou
Coal-fired
|
476.26 | 496.60 | 4.27 | % | ||||||||
Dandong
|
330.38 | 340.82 | 3.16 | % | ||||||||
Shidongkou
II
|
347.93 | 377.04 | 8.37 | % | ||||||||
Nanjing
|
342.99 | 375.47 | 9.47 | % | ||||||||
Dezhou
|
360.45 | 394.08 | 9.33 | % | ||||||||
Weihai
|
403.00 | 422.78 | 4.91 | % | ||||||||
Jining
|
350.80 | 378.41 | 7.87 | % | ||||||||
Shidongkou
I
|
369.54 | 377.35 | 2.11 | % | ||||||||
Taicang
|
359.69 | 401.60 | 11.65 | % | ||||||||
Changxing
|
428.16 | 450.86 | 5.30 | % | ||||||||
Huaiyin
Phase II
|
357.47 | 396.80 | 11.00 | % | ||||||||
Xindian
|
379.71 | 371.86 | -2.07 | % | ||||||||
Yushe
|
288.45 | 305.07 | 5.76 | % | ||||||||
Yingkou
|
343.37 | 360.45 | 4.97 | % | ||||||||
Jinggangshan
|
366.94 | 379.99 | 3.56 | % | ||||||||
Luohuang
|
319.86 | 344.98 | 7.85 | % | ||||||||
Yueyang
|
372.19 | 392.58 | 5.48 | % | ||||||||
Qinbei
|
311.86 | 339.85 | 8.98 | % | ||||||||
Pingliang
|
223.31 | 238.89 | 6.98 | % | ||||||||
Yuhuan
|
415.05 | 444.92 | 7.20 | % | ||||||||
Taicang
II
|
358.08 | 396.48 | 10.72 | % | ||||||||
Xindian
II
|
356.01 | 370.99 | 4.21 | % | ||||||||
Nanjing
Jinling
|
481.99 | 528.73 | 9.70 | % | ||||||||
Consolidated
(Domestic)
|
359.71 | 387.34 | 7.68 | % |
For
the Year Ended December 31
|
||||||||||||
2007
|
2006
|
Increased/
(Decreased)
|
||||||||||
RMB’000
|
RMB’000
|
%
|
||||||||||
Operating
revenue
|
49,767,849 | 44,301,403 | 12.34 | |||||||||
Sales
tax
|
(139,772 | ) | (148,057 | ) | (5.60 | ) | ||||||
Operating
expenses
|
||||||||||||
Fuel
|
(27,790,310 | ) | (22,608,151 | ) | 22.92 | |||||||
Maintenance
|
(1,534,016 | ) | (1,306,888 | ) | 17.38 | |||||||
Depreciation
|
(7,225,964 | ) | (6,719,158 | ) | 7.54 | |||||||
Labor
|
(2,786,109 | ) | (2,886,767 | ) | (3.49 | ) | ||||||
Service fees on transmission and transformer facilities of
HIPDC
|
(140,771 | ) | (140,771 | ) | - | |||||||
Others
|
(2,228,596 | ) | (1,933,200 | ) | 15.28 | |||||||
Total
operating expense
|
(41,705,766 | ) | (35,594,935 | ) | 17.17 | |||||||
Profit
from operations
|
7,922,311 | 8,558,411 | (7.43 | ) | ||||||||
Financial
expenses
|
||||||||||||
Interest
income
|
53,527 | 51,910 | 3.12 | |||||||||
Interest
expense
|
(2,132,122 | ) | (1,591,033 | ) | 34.01 | |||||||
Exchange gain and bank charges , net
|
204,134 | 67,819 | 201.00 | |||||||||
Total
financial expenses, net
|
(1,874,461 | ) | (1,471,304 | ) | 27.40 | |||||||
Share
of profits of associates
|
586,323 | 790,629 | (25.84 | ) | ||||||||
Gain
on fair value changes
|
87,132 | 100,180 | (13.02 | ) | ||||||||
Investment
income
|
585,379 | 28,415 | 1,960.11 | |||||||||
Other
income, net
|
12,617 | 10,442 | 20.83 | |||||||||
Profit
before income tax expense
|
7,319,301 | 8,016,773 | (8.70 | ) | ||||||||
Income
tax expense
|
(838,270 | ) | (1,127,699 | ) | (25.67 | ) | ||||||
Profit
for the year
|
6,481,031 | 6,889,074 | (5.92 | ) | ||||||||
Attributable
to:
|
||||||||||||
Equity
holders of the Company
|
6,161,127 | 6,071,154 | 1.48 | |||||||||
Minority
interests
|
319,904 | 817,920 | (60.89 | ) | ||||||||
6,481,031 | 6,889,074 | (5.92 | ) |
Average
tariff rate
(VAT
inclusive)
(RMB/MWh)
|
||||||||||||
Power
Plant
|
2006
|
2007
|
Change
|
|||||||||
Dalian
|
315.95 | 323.27 | 2.32 | % | ||||||||
Fuzhou
|
342.46 | 369.61 | 7.93 | % | ||||||||
Nantong
|
344.92 | 339.47 | (1.58 | %) | ||||||||
Shang’an
|
340.22 | 344.47 | 1.25 | % | ||||||||
Shantou
Coal-fired
|
467.37 | 476.26 | 1.90 | % | ||||||||
Dandong
|
322.76 | 330.38 | 2.36 | % | ||||||||
Shidongkou
II
|
357.08 | 347.93 | (2.56 | %) | ||||||||
Nanjing
|
345.56 | 342.99 | (0.74 | %) | ||||||||
Dezhou
|
360.68 | 360.45 | (0.06 | %) | ||||||||
Weihai
|
402.99 | 403.00 | 0.00 | % | ||||||||
Jining
|
342.42 | 350.80 | 2.45 | % | ||||||||
Shidongkou
I
|
358.85 | 369.54 | 2.98 | % | ||||||||
Taicang
|
361.64 | 359.69 | (0.54 | %) | ||||||||
Changxing
|
408.90 | 428.16 | 4.71 | % | ||||||||
Huaiyin
Phase I
|
366.44 | N/A | N/A | |||||||||
Huaiyin
Phase II
|
362.26 | 357.47 | (1.32 | %) | ||||||||
Xindian
|
350.54 | 379.71 | 8.32 | % | ||||||||
Yushe
|
281.47 | 288.45 | 2.48 | % | ||||||||
Yingkou
|
334.47 | 343.37 | 2.66 | % | ||||||||
Jinggangshan
|
369.87 | 366.94 | (0.79 | %) | ||||||||
Luohuang
|
315.46 | 319.86 | 1.39 | % | ||||||||
Yueyang
|
361.68 | 372.19 | 2.91 | % | ||||||||
Qinbei
|
311.20 | 311.86 | 0.21 | % | ||||||||
Pingliang
|
216.27 | 223.31 | 3.26 | % | ||||||||
Yuhuan
|
360.95 | 415.05 | 14.99 | % | ||||||||
Taicang
II
|
371.50 | 358.08 | (3.61 | %) | ||||||||
Xindian
II
|
351.90 | 356.01 | 1.17 | % | ||||||||
Shanghai
CCGT
|
N/A | N/A | N/A | |||||||||
Nanjing
Jinling
|
N/A | 481.99 | N/A | |||||||||
Consolidated
|
343.59 | 359.71 | 4.69 | % |
C.
|
Financial
position
|
2008
|
2007
|
|||||||
Current ratio
|
0.38
|
0.59
|
||||||
Quick ratio
|
0.28
|
0.52
|
||||||
Ratio of liability and shareholders' equity
|
3.35
|
1.54
|
||||||
Multiples of interest earned
|
-0.14
|
3.41
|
D.
|
Liquidity
and cash resources
|
For
the Year Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
RMB’000
|
RMB’000
|
RMB’000
|
||||||||||
(Restated)
|
(Restated)
|
|||||||||||
Cash flows from operating activities
|
||||||||||||
(Loss)/Profit
before income tax
expense
|
(4,791,556 | ) | 7,319,301 | 8,016,773 | ||||||||
Non-cash
items
adjustments
|
11,613,508 | 7,697,722 | 7,429,529 | |||||||||
Changes
in working
capital
|
(1,294,151 | ) | (1,798,882 | ) | (99,402 | ) | ||||||
Interest
received
|
72,940 | 52,825 | 53,444 | |||||||||
Income
tax
paid
|
(414,848 | ) | (1,192,133 | ) | (1,394,503 | ) | ||||||
Net
cash provided by operating activities
|
5,185,893 | 12,078,833 | 14,005,841 |
For
the year ended December 31,
|
||||||||||||
2008
|
|
2007
|
2006
|
|||||||||
RMB’000
|
RMB’000
|
RMB’000
|
||||||||||
|
|
|||||||||||
Cash flows from investing activities
|
||||||||||||
Purchase
of property, plant and equipment
|
(27,893,520 | ) | (14,223,310 | ) | (15,998,575 | ) | ||||||
Proceeds
from disposals of property, plant and equipment, net
|
25,336 | 270,131 | 32,180 | |||||||||
Prepayments
of land use rights
|
(76,050 | ) | (216,752 | ) | (250,627 | ) | ||||||
Prepayments
of territorial waters use right
|
- | (152,409 | ) | - | ||||||||
Increase
in other non-current assets
|
(16,004 | ) | (6,247 | ) | (8,973 | ) | ||||||
Decrease
in temporary cash investments
|
- | - | 2,652 | |||||||||
Cash
dividend received
|
381,854 | 518,934 | 482,609 | |||||||||
Capital
injections in associates
|
(281,754 | ) | (1,654,000 | ) | (174,918 | ) | ||||||
Purchases
of financial assets at fair value through profit or loss
|
- | (370,189 | ) | - | ||||||||
Cash
paid for acquiring available-for-sale financial assets
|
(146,375 | ) | (449,457 | ) | - | |||||||
Proceeds
from trading of available-for-sale financial assets
|
- | 603,411 | - | |||||||||
Cash
consideration paid for acquisitions
|
(21,772,563 | ) | (485,750 | ) | - | |||||||
Acquisition
of minority interest of a subsidiary
|
(67,485 | ) | - | - | ||||||||
Cash
from the acquisition of a subsidiary
|
1,624,108 | 259,924 | - | |||||||||
Cash
outflow upon deemed disposal of Sichuan Hydropower
|
- | (322,176 | ) | - | ||||||||
Cash
received on repayment of a loan receivable
|
254,255 | - | - | |||||||||
Others
|
11,133 | (29,465 | ) | 110 | ||||||||
Net cash used in investing activities | (47,957,065 | ) | (16,257,355 | ) | (15,915,542 | ) |
For
the year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
RMB’000
|
RMB’000
|
RMB’000
|
||||||||||
(Restated)
|
(Restated)
|
|||||||||||
Cash
flows from financing activities
|
||||||||||||
Issuance
of short-term bonds
|
4,980,000 | 4,980,000 | 4,980,000 | |||||||||
Repayments
of short-term bonds
|
(5,000,000 | ) | (5,000,000 | ) | (4,862,200 | ) | ||||||
Drawdown
of short-term loans
|
57,696,660 | 23,898,505 | 14,458,700 | |||||||||
Repayments
of short-term loans
|
(39,483,770 | ) | (19,771,700 | ) | (13,215,850 | ) | ||||||
Drawdown
of long-term bank loans
|
36,510,900 | 8,186,176 | 9,982,982 | |||||||||
Repayments
of long-term bank loans
|
(8,265,180 | ) | (3,282,102 | ) | (3,010,623 | ) | ||||||
Drawdown
of other long-term loans
|
145,386 | - | 40,000 | |||||||||
Repayments
of other long-term loans
|
(1,989,258 | ) | (210,873 | ) | (472,154 | ) | ||||||
Issuance
of long-term bonds
|
3,933,302 | 5,903,644 | - | |||||||||
Interest
paid
|
(4,731,749 | ) | (2,722,935 | ) | (2,507,354 | ) | ||||||
Net
capital injection from minority shareholders of the
subsidiaries
|
1,162,562 | 116,890 | 588,708 | |||||||||
Government
grants
|
236,013 | - | - | |||||||||
Dividends
paid to shareholders of the Company
|
(3,570,334 | ) | (3,375,507 | ) | (3,013,846 | ) | ||||||
Dividends
paid to minority shareholders of the subsidiaries
|
(301,662 | ) | (434,205 | ) | (495,361 | ) | ||||||
Others
|
(67,579 | ) | - | - | ||||||||
Net
cash provided by financing activities
|
41,255,291 | 8,287,893 | 2,473,002 |
For
the year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
RMB’000
|
RMB’000
|
RMB’000
|
||||||||||
(Restated)
|
(Restated)
|
|||||||||||
Net (decrease) / increase in cash and cash equivalents
|
(1,515,881 | ) | 4,109,371 | 563,301 | ||||||||
Cash and cash equivalents, beginning of the year
|
7,312,265 | 3,207,192 | 2,647,665 | |||||||||
Exchange
loss
|
(229,759 | ) | (4,298 | ) | (3,774 | ) | ||||||
Cash
and cash equivalents as of the end of the year
|
5,566,625 | 7,312,265 | 3,207,192 |
Capital
expenditure
arrangement
|
Contractual
arrangement
|
Financing
methods
|
Cash
resources arrangements
|
Financing
costs and note on use
|
|||||||||||||||||
2009
|
2010
|
2009
|
2010
|
||||||||||||||||||
(RMB
in billions)
|
|||||||||||||||||||||
Thermal
power projects
|
21.586 | 23.0 | 21.586 | 23.0 |
Debt
financing
|
Internal
cash resources & bank loans, etc.
|
Within
the floating range of benchmark lending interest rates of
PBOC
|
||||||||||||||
Hydropower
projects
|
0.5 | 0.3 | 0.5 | 0.3 |
Debt
financing
|
Internal
cash
|
Within
the floating
|
resources
& bank loans, etc.
|
range
of benchmark lending interest rates of PBOC
|
||||||||||||||||||
Wind
power projects
|
3.56 | 0.65 | 3.56 | 0.65 |
Debt
financing
|
Internal
cash resources & bank loans, etc.
|
Within
the floating range of benchmark lending interest rates of
PBOC
|
||||||||||||
Port
projects
|
0.6 | 1.5 | 0.6 | 1.5 |
Debt
financing
|
Internal
cash resources & bank loans, etc.
|
Within
the floating range of benchmark lending interest rates of
PBOC
|
||||||||||||
Coal
mining projects
|
1.164 | 5.8 | 1.164 | 5.8 |
Debt
financing
|
Internal
cash resources & bank loans, etc.
|
Within
the floating range of benchmark lending interest rates of
PBOC
|
||||||||||||
Reservoir
projects
|
0.83 | 0.6 | 0.83 | 0.6 |
Debt
financing
|
Internal
cash resources & bank loans, etc.
|
Within
the floating range of benchmark lending interest rates of
PBOC
|
||||||||||||
Technical
renovation projects
|
4.927 | — | 4.927 | — |
—
|
Internal
cash resource
|
—
|
Maturity
Profile
|
||||||||||||||||||||
(RMB
billions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
|||||||||||||||
Principal
proposed to be repaid
|
40.3 | 15.0 | 9.7 | 6.3 | 8.9 | |||||||||||||||
Interest
proposed to be repaid
|
5.7 | 3.7 | 3.1 | 2.6 | 2.0 | |||||||||||||||
Total
|
46.0 | 18.7 | 12.8 | 8.9 | 10.9 |
Notes:
|
(1) |
This
table is prepared according to the amounts in the contracts which have
been entered into;
|
(2) | The amount of the principal to be repaid in 2009 is relatively large compared to the amount presented in the “Tabular disclosure contractual obligations and commercial commitments” because this includes expected repayment of short-term loans and short-term bonds. |
E.
|
Trend
information
|
F.
|
Employee
benefits
|
G.
|
Guarantee
on loans and restricted assets
|
H.
|
Off-balance
sheet arrangements
|
I.
|
Performance
of significant investments and their
prospects
|
J.
|
Tabular
disclosure of contractual obligations and commercial
commitments
|
Contractual
Cash Obligations
|
||||||||||||||||||||
(RMB
million)
|
2009
|
2010-2011
|
2012-2013
|
Thereafter
|
Total
|
|||||||||||||||
Long-term
Loans from a Shareholder(1)
|
- | - | 800 | 2,000 | 2,800 | |||||||||||||||
Long-term
Bank Loans(1)
|
6,524 | 24,600 | 13,331 | 22,111 | 66,566 | |||||||||||||||
Other
Long-term Loans(1)
|
38 | 186 | - | 40 | 264 | |||||||||||||||
Long-term
bonds(2)
|
- | - | 1,000 | 9,000 | 10,000 | |||||||||||||||
Interest
Payments
|
4,588 | 6,712 | 4,631 | 8,709 | 24,640 | |||||||||||||||
Operating
Lease - Head Office(3)
|
26 | - | - | - | 26 | |||||||||||||||
Operating
Lease - Nanjing Power Plant(3)
|
1 | 3 | 3 | 47 | 54 | |||||||||||||||
Operating
Lease - Dezhou Power Plant(3)
|
30 | 60 | 60 | 312 | 462 | |||||||||||||||
Operating
Lease - Shang’an Power Plant(3)
|
2 | 4 | 4 | 58 | 68 | |||||||||||||||
11,209 | 31,565 | 19,829 | 42,277 | 104,880 | ||||||||||||||||
Other
Commercial Commitments
|
||||||||||||||||||||
(RMB
million)
|
2009
|
2010-2011
|
2012-2013
|
Thereafter
|
Total
|
|||||||||||||||
Long-term
coal purchase contracts(3)
|
7,893 | - | - | - | 7,893 | |||||||||||||||
Long
– term gas purchase contract(4)
|
7,129 | 14,258 | 14,258 | 9,595 | 45,240 | |||||||||||||||
Other
commitments(3)
|
23,780 | 19 | - | - | 23,799 | |||||||||||||||
38,802 | 14,277 | 14,258 | 9,595 | 76,932 |
(1)
|
See
Note 26 to the Financial Statements, “Long-term Loans”.
|
|
(2)
|
See
Note 27 to the Financial Statements, "Long – term Bonds".
|
|
(3)
|
See
Note 38 to the Financial Statements, “Commitments”.
|
|
(4)
|
The
numbers shown in the table above were calculated based on the minimum
purchases stipulated in the long-term gas contracts disclosed in Note 38
to financial
statements.
|
K.
|
Goodwill
impairment
|
L.
|
Business
plan
|
ITEM 6 | Directors, Senior Management and Employees |
A.
|
Directors,
members of the supervisory committee and senior
management
|
Name
|
Age
|
Position
with us
|
|||
Cao
Peixi
|
54 |
Chairman
of the Board of Directors
|
|||
Huang
Long
|
56 |
Vice
Chairman of the Board of Directors
|
|||
Wu
Dawei
|
56 |
Director
|
|||
Huang
Jian
|
47 |
Director
|
|||
Liu
Guoyue
|
46 |
Director,
President
|
|||
Fan
Xiaxia
|
47 |
Director,
Vice President
|
|||
Shan
Qunying
|
56 |
Director
|
|||
Xu
Zujian
|
55 |
Director
|
|||
Huang
Mingyuan
|
51 |
Director
|
|||
Liu
Shuyuan
|
59 |
Director
|
|||
Liu
Jipeng
|
53 |
Independent
Director
|
|||
Yu
Ning
|
55 |
Independent
Director
|
|||
Shao
Shiwei
|
64 |
Independent
Director
|
|||
Zheng
Jianchao
|
70 |
Independent
Director
|
|||
Wu
Liansheng
|
39 |
Independent
Director
|
Name
|
Age
|
Position
with us
|
|||
Guo
Junming
|
44 |
Chairman
of the Supervisory Committee
|
|||
Yu
Ying
|
54 |
Vice
Chairman of the Supervisory Committee
|
|||
Wu
Lihua
|
54 |
Supervisor
|
|||
Gu
Jianguo
|
43 |
Supervisor
|
|||
Wang
Zhaobin
|
54 |
Supervisor
|
|||
Dai
Xinmin
|
48 |
Supervisor
|
B.
|
Compensation
for Directors, Supervisors and Executive
Officers
|
Name
|
Position
with the Company
|
Remuneration
Paid by the Company in 2008 (1)
|
||||
(RMB
in thousand)
|
||||||
Directors
|
||||||
Mr.
Cao Peixi
|
Chairman
of the Board of Directors (appointed on August 27, 2008)
|
- | ||||
Mr.
Huang Long
|
Vice
Chairman of the Board of Directors
|
- | ||||
Mr.
Wu Dawei(2)
|
Director
|
492 | ||||
Mr.
Huang Jian
|
Director
(appointed on August 27, 2008)
|
- | ||||
Mr.
Liu Guoyue(3)
|
Director
and President (appointed on May 13, 2008)
|
764 | ||||
Mr.
Fan Xiaxia(4)
|
Director
and Vice President (appointed on May 13, 2008)
|
763 | ||||
Mr.
Shan Qunying
|
Director
|
48 | ||||
Mr.
Xu Zujian
|
Director
|
48 | ||||
Ms.
Huang Mingyuan(5)
|
Director
(appointed on May 13, 2008)
|
24 | ||||
Mr.
Liu Shuyuan
|
Director
|
48 | ||||
Mr.
Liu Jipeng
|
Independent
Director
|
74 |
Name
|
Position
with the Company
|
Remuneration
Paid by the Company in 2008 (1)
|
||||
(RMB
in thousand)
|
||||||
Mr.
Yu Ning
|
Independent
Director
|
74 | ||||
Mr.
Shao Shiwei(5)
|
Independent
Director (appointed on May 13, 2008)
|
37 | ||||
Mr.
Zheng Jianchao(5)
|
Independent
Director (appointed on May 13, 2008)
|
37 | ||||
Mr.
Wu Liansheng(5)
|
Independent
Director (appointed on May 13, 2008)
|
37 | ||||
Mr.
Li Xiaopeng
|
Chairman
of the Board of Directors (resigned on June 2, 2008)
|
- | ||||
Mr.
Huang Yongda
|
Vice
Chairman of the Board of Directors (resigned on August 27,
2008)
|
- | ||||
Mr.
Na Xizhi(6)
|
Director
and President (retired on May 13, 2008)
|
162 | ||||
Mr.
Ding Shida(6)
|
Director
(retired on May 13, 2008)
|
24 | ||||
Mr.
Qian Zhongwei(6)
|
Independent
Director (retired on May 13, 2008)
|
37 | ||||
Mr.
Xia Donglin(6)
|
Independent
Director (retired on May 13, 2008)
|
37 | ||||
Mr.
Wu Yusheng(6)
|
Independent
Director (retired on May 13, 2008)
|
37 | ||||
Sub-total:
|
2,743 | |||||
Supervisors
|
||||||
Ms.
Guo Junming
|
Chairman
of the Supervisory Committee
|
- | ||||
Ms.
Yu Ying
|
Vice
Chairman of the Supervisory Committee
|
48 | ||||
Ms.
Wu Lihua(5)
|
Supervisor
(appointed on May 13, 2008)
|
- | ||||
Mr.
Gu Jiangou
|
Supervisor
|
48 | ||||
Mr.
Wang Zhaobin
|
Supervisor
|
765 | ||||
Mr.
Dai Xinmin(7)
|
Supervisor
(appointed on May 13, 2008)
|
425 | ||||
Mr.
Shen Zongmin(6)
|
Supervisor
(retired on May 13, 2008)
|
24 | ||||
Ms.
Zou Cui(6)
|
Supervisor
(retired on May 13, 2008)
|
233 | ||||
Sub-total
|
1,543 | |||||
Other Executive
officers
|
||||||
Mr.
Gu Biquan
|
Vice
President and Secretary to the Board
|
753 | ||||
Mr.
Lin Weijie(8)
|
Vice
President (appointed in April, 2008)
|
667 | ||||
Mr.
Ye Xiangdong(9)
|
Vice
President (appointed in April, 2008)
|
670 | ||||
Mr.
Lin Gang(10)
|
Vice
President (appointed in April, 2008)
|
666 | ||||
Ms.
Zhou Hui
|
Chief
Accountant
|
960 | ||||
Mr.
Zhao Ping(11)
|
Chief
Engineer (appointed in April, 2008)
|
667 | ||||
Sub-total:
|
4,383 | |||||
Total
|
8,669 |
|
(1)
|
The
remuneration paid by the Company in 2008 includes the basic salaries,
performance salaries and pension, please see Note 9 to the Item 17
Financial Statements, “Directors’, supervisors’ and senior management’
emoluments”.
|
|
(2)
|
Wu
Dawei has been paid by the Company from January 2008 to August
2008.
|
|
(3)
|
The
remuneration of Liu Guoyue excludes the compensation received before
appointed as the director amounting to RMB292,000 from January 2008 to
April 2008 in the capacity of
Vice President of Company.
|
|
(4)
|
The
remuneration of Fan Xiaxia excludes the compensation received before
appointed as the director amounting to RMB291,000 from January 2008 to
April 2008 in the capacity Vice President of
Company.
|
|
(5)
|
The
remuneration paid was calculated from May 2008 to December
2008.
|
|
(6)
|
The
remuneration paid was calculated from January 2008 to April
2008.
|
|
(7)
|
The
remuneration of Dai Xinmin excludes the compensation received before
appointed as the supervisor amounting to
RMB169,000 from January 2008 to April 2008 in the capacity
of the Manager of the Audit and Supervisory Department of the
Company.
|
|
(8)
|
The
remuneration of Lin Weijie excludes the compensation received
before appointed as the vice president amounting to RMB182,000 from
January 2008 to March 2008 in the capacity of the Assistant
to the President of the
Company.
|
|
(9)
|
The remuneration of Ye Xiangdong excludes
the compensation received before appointed as the vice president amounting
to
RMB179,000 from January 2008 to March 2008 in the capacity of the
Assistant to the President of the
Company.
|
|
(10)
|
The remuneration of Lin Gang excludes the
compensation received before appointed as the vice president amounting
to
RMB182,000 from January
2008 to March 2008 in the capacity of the Assistant
to the President of the
Company.
|
|
(11)
|
The
remuneration of Zhao Ping excludes the compensation received before
appointed as the chief engineer amounting to
RMB182,000 from January 2008 to March 2008 in the capacity
of the Deputy Chirf Engineer of the
Company.
|
C.
|
Board
practice
|
D.
|
Employees
|
E.
|
Share
ownership
|
ITEM 7 | Major Shareholders and Related Party Transactions |
A.
|
Major
shareholders
|
Shareholder
|
Number
of shares
|
Approximate
percentage in the total issued domestic share capital %
|
Approximate
percentage in the total issued
share
capital %
|
|||||||||
Huaneng
International Power Development Corporation
|
5,066,662,118 | 56.30 | 42.03 | |||||||||
China
Huaneng Group(1)
|
1,075,124,549 | 11.72 | 8.92 | |||||||||
Hebei
Provincial Construction Investment Company
|
603,000,000 | 6.70 | 5.00 |
Note:
(1)
|
Of
the 1,075,124,549 shares, 1,055,124,549 shares are directly held by
Huaneng Group, 20,000,000 shares are held by Huaneng Group through its
wholly-owned subsidiary, China Hua Neng Hong Kong Company
Limited. In addition, Huaneng Group indirectly holds 22% of our
total issued shares through HIPDC, its 51.98% owned
subsidiary.
|
B.
|
Related
party transactions
|
Guarantor
|
Guarantee
|
|
Interest
Rate
|
Largest
Amount Outstanding
in
2008
|
Amount
Outstanding
As
of March 31, 2009
|
|||||||||
(%)
|
(RMB)
|
(RMB)
|
||||||||||||
Huaneng
Group
|
The
Company
|
6.36 | 284,332,417 | 221,565,772 | ||||||||||
(Ultimate
Parent of the Company)
|
The
Company
|
LIBOR
+ 0.075
|
346,638,829 | 259,517,385 | ||||||||||
Luohuang
Power Company(1)
|
5.95 | 704,735,628 | 412,197,646 | |||||||||||
Qinbei
Power Company(2)
|
LIBOR+0.43
|
73,045,999 | 48,827,856 | |||||||||||
Qinbei
Power Company(2)
|
LIBOR+0.3
|
53,386,667 | 41,446,429 | |||||||||||
HIPDC
|
The
Company
|
5.95 | 453,044,903 | 264,984,541 | ||||||||||
The
Company
|
6.60 | 357,816,809 | 260,444,686 | |||||||||||
The
Company
|
6.60 | 145,083,494 | 108,619,364 | |||||||||||
The
Company
|
6.54 | 562,410,958 | 350,882,548 |
The
Company
|
5.95 | 523,426,630 | 367,380,702 | |||||||||||
The
Company
|
5.20 | 4,000,000,000 | 4,000,000,000 | |||||||||||
The
Company
|
Rizhao
Power Company(3)
|
7.83 | 17,000,000 | 4,250,000 | ||||||||||
Rizhao
Power Company(3)
|
7.83 | 17,000,000 | 8,500,000 | |||||||||||
Rizhao
Power Company(3)
|
7.83 | 17,000,000 | 8,500,000 | |||||||||||
Rizhao
Power Company(3)
|
7.83 | 35,062,500 | 18,062,500 | |||||||||||
SinoSing
Power Company(4)
|
LIBOR+1.25
|
342,025,880 | 340,131,433 | |||||||||||
SinoSing
Power Company(4)
|
LIBOR+1.25
|
3,009,827,744 | 2,993,156,611 | |||||||||||
SinoSing
Power Company(4)
|
SIBOR+1.25
|
692,727,450 | 672,247,489 |
(1)
|
Luohuang
Power Company is a subsidiary of the
Company.
|
(2)
|
Qinbei
Power Company is a subsidiary of the
Company.
|
(3)
|
Rizhao
Power Company is an associate of the
Company.
|
(4)
|
SingSing
Power Company is a subsidiary of the
Company.
|
Lender
|
Borrower
|
Interest
Rate
|
Largest
Amount Outstanding
in
2008
|
Outstanding
Balance
as
of March 31, 2009
|
||||||||||
(%)
|
(RMB)
|
(RMB)
|
||||||||||||
Huaneng
Group
|
The
Company
|
5.02 | 2,000,000,000 | 2,000,000,000 | ||||||||||
(Ultimate
Parent of the Company)
|
Yushe
Power Company(1)
|
4.60 | 225,000,000 | 225,000,000 | ||||||||||
Yushe
Power Company(1)
|
4.32 | 75,000,000 | 75,000,000 | |||||||||||
Qinbei
Power Company(2)
|
4.60 | 375,000,000 | 375,000,000 | |||||||||||
Qinbei
Power Company(2)
|
4.32 | 125,000,000 | 125,000,000 | |||||||||||
Huaneng
Finance
|
Weihai
Power Company(3)
|
5.75 | 100,000,000 | - | ||||||||||
(Subsidiary
of Huaneng Group)
|
Weihai
Power Company(3)
|
6.72 | 50,000,000 | - | ||||||||||
Weihai
Power Company(3)
|
6.72 | 100,000,000 | 100,000,000 | |||||||||||
Weihai
Power Company(3)
|
6.72 | 100,000,000 | 100,000,000 | |||||||||||
Taicang
Power Company(4)
|
6.16 | 200,000,000 | - | |||||||||||
Taicang
II Power Company(5)
|
6.56 | 490,000,000 | - | |||||||||||
Taicang
II Power Company(5)
|
6.24 | 90,000,000 | 90,000,000 | |||||||||||
Taicang
II Power Company(5)
|
5.99 | 200,000,000 | 200,000,000 | |||||||||||
Huaiyin
II Power Company(6)
|
5.43 | 200,000,000 | - | |||||||||||
Huaiyin
II Power Company(6)
|
6.72 | 200,000,000 | - | |||||||||||
Huaiyin
II Power Company(6)
|
6.24 | 200,000,000 | 200,000,000 | |||||||||||
Yushe
Power Company(1)
|
5.91 | 40,000,000 | - | |||||||||||
Yushe
Power Company(1)
|
6.56 | 70,000,000 | - |
Yushe
Power Company(1)
|
6.56 | 67,700,000 | - | |||||||||||
Yushe
Power Company(1)
|
6.32 | 30,000,000 | - | |||||||||||
Yushe
Power Company(1)
|
6.72 | 30,000,000 | 30,000,000 | |||||||||||
Yushe
Power Company(1)
|
6.72 | 100,000,000 | 100,000,000 | |||||||||||
Yushe
Power Company(1)
|
5.10 | 130,000,000 | 130,000,000 | |||||||||||
Qinbei
Power Company(2)
|
5.75 | 230,000,000 | - | |||||||||||
Qinbei
Power Company(2)
|
5.91 | 200,000,000 | - | |||||||||||
Yueyang
Power Company(7)
|
6.56 | 130,000,000 | - | |||||||||||
Yueyang
Power Company(7)
|
6.48 | 130,000,000 | 130,000,000 | |||||||||||
Pingliang
Power Company(8)
|
6.16 | 110,000,000 | - | |||||||||||
Pingliang
Power Company(8)
|
6.56 | 290,000,000 | - | |||||||||||
Pingliang
Power Company(8)
|
5.99 | 150,000,000 | 150,000,000 | |||||||||||
Pingliang
Power Company(8)
|
5.02 | 140,000,000 | 140,000,000 | |||||||||||
Jinling
Power Company(9)
|
4.78 | 100,000,000 | - | |||||||||||
Jinling
Power Company(9)
|
4.78 | 100,000,000 | - | |||||||||||
The
Company
|
Weihai
Power Company(3)
|
7.20 | 200,000,000 | 200,000,000 | ||||||||||
Weihai
Power Company(3)
|
6.93 | 200,000,000 | 200,000,000 | |||||||||||
Taicang
II Power Company(5)
|
7.47 | 500,000,000 | 500,000,000 | |||||||||||
Shidongkou
Power Company(10)
|
5.58 | 1,500,000,000 | 1,700,000,000 | |||||||||||
Daditaihong(11)
|
5.58 | 40,000,000 | 40,000,000 | |||||||||||
Daditaihong(11)
|
5.31 | - | 100,000,000 |
(1)
|
Yushe
Power Company is a subsidiary of the
Company.
|
(2)
|
Qinbei
Power Company is a subsidiary of the
Company.
|
(3)
|
Weihai
Power Company is a subsidiary of the
Company.
|
(4)
|
Taicang
Power Company is a subsidiary of the
Company.
|
(5)
|
Taicang
II Power Company is a subsidiary of the
Company.
|
(6)
|
Huaiyin
II Power Company is a subsidiary of the
Company.
|
(7)
|
Yueyang
Power Company is a subsidiary of the
Company.
|
(8)
|
Pingliang
Power Company is a subsidiary of the
Company.
|
(9)
|
Jinling
Power Company is a subsidiary of the
Company.
|
(10)
|
Shidongkou
Power Company is a subsidiary of the
Company.
|
(11)
|
Daditaihong
is a subsidiary of the Company.
|
C.
|
Interests
of experts and counsel
|
ITEM
8
|
Financial Information
|
A.
|
Consolidated
statements and other financial
information
|
B.
|
Significant
changes
|
ITEM 9 | The Offer and Listing |
A.
|
Offer
and listing details and
markets
|
Closing
Price Per ADS
|
||||||||
High
|
Low
|
|||||||
(US$)
|
(US$)
|
|||||||
2004
|
86.91 | 27.30 | ||||||
2005
|
31.24 | 26.21 | ||||||
2006
|
36.35 | 24.05 | ||||||
2007
|
57.12 | 33.19 | ||||||
2008
|
42.15 | 16.57 | ||||||
2007 First
Quarter
|
40.45 | 32.01 | ||||||
Second
Quarter
|
46.45 | 35.58 |
Closing
Price Per ADS
|
||||||||
High
|
Low
|
|||||||
(US$)
|
(US$)
|
|||||||
Third
Quarter
|
53.00 | 37.83 | ||||||
Fourth
Quarter
|
57.12 | 37.83 | ||||||
2008 First
Quarter
|
42.15 | 24.00 | ||||||
Second
Quarter
|
36.85 | 26.00 | ||||||
Third
Quarter
|
34.87 | 24.74 | ||||||
Fourth
Quarter
|
29.47 | 16.57 | ||||||
2008 October
|
27.63 | 16.58 | ||||||
November
|
27.41 | 16.57 | ||||||
December
|
29.47 | 22.25 | ||||||
2009 January
|
31.03 | 23.22 | ||||||
February
|
30.42 | 25.71 | ||||||
March
|
29.99 | 22.65 | ||||||
Closing
Price Per H shares
|
||||||||
High
|
Low
|
|||||||
(HK$)
|
(HK$)
|
|||||||
2004
|
13.45 | 6.05 | ||||||
2005
|
6.10 | 5.10 | ||||||
2006
|
7.00 | 4.70 | ||||||
2007
|
10.8 | 6.51 | ||||||
2008
|
8.22 | 2.96 | ||||||
2007 First
Quarter
|
7.77 | 6.51 | ||||||
Second
Quarter
|
8.95 | 6.85 | ||||||
Third
Quarter
|
10.74 | 7.24 | ||||||
Fourth
Quarter
|
10.8 | 7.41 | ||||||
2008 First
Quarter
|
8.22 | 4.61 | ||||||
Second
Quarter
|
7.03 | 4.76 | ||||||
Third
Quarter
|
6.49 | 4.78 | ||||||
Fourth
Quarter
|
5.76 | 2.96 | ||||||
2008 October
|
5.37 | 2.96 | ||||||
November
|
5.56 | 3.13 | ||||||
December
|
5.76 | 4.50 | ||||||
2009 January
|
6.00 | 4.45 | ||||||
February
|
5.84 | 4.91 | ||||||
March
|
5.80 | 4.85 | ||||||
ITEM 10 | Additional Information |
A.
|
Share
capital
|
B.
|
Memorandum
and articles of association
|
|
·
|
recovery
of losses, if any;
|
|
·
|
allocations
to the statutory surplus reserve fund;
and
|
|
·
|
allocations
to a discretionary surplus reserve
fund.
|
|
·
|
where
the number of directors is less than the number required by the PRC
Company Law or two-thirds of the number specified in our Articles of
Association;
|
|
·
|
where
our unrecovered losses reach one-third of the total amount of our share
capital;
|
|
·
|
where
shareholder(s) holding 10% or more of our voting rights request(s) in
writing the convening of an extraordinary general meeting;
or
|
|
·
|
whenever
our board deems necessary or our supervisory committee so
requests.
|
|
·
|
an
increase or reduction of our registered share capital or the issuance of
shares, including stock distributions, of any class, warrants and other
similar securities;
|
|
·
|
issuance
of debentures;
|
|
·
|
our
division, merger, dissolution, liquidation and change of the legal
form;
|
|
·
|
amendments
to our Articles of Association; and
|
|
·
|
any
other matters our shareholders have resolved by way of an ordinary
resolution at a general meeting to be of a nature which may have a
material impact on us and should be adopted by special
resolution.
|
|
·
|
is
in a position to elect more than one-half of the board of
directors;
|
|
·
|
has
the power to exercise, or to control the exercise of, 30% or more of our
voting rights;
|
|
·
|
holds
30% or more of our issued and outstanding shares;
or
|
|
·
|
has
de facto control of us in any other
way.
|
|
·
|
is
necessary to enable them and the public to appraise the position of us and
our subsidiaries;
|
|
·
|
is
necessary to avoid the establishment of a false market in its securities;
and
|
|
·
|
might
be reasonably expected materially to affect market activity in and the
price of its securities.
|
|
·
|
between
a holder of H Shares and us;
|
|
·
|
between
a holder of H Shares and any of our directors, supervisors, general
managers or other senior officers;
or
|
|
·
|
between
a holder of H Shares and a holder of domestic ordinary shares, arising
from any provision of our Articles of Association, any right or obligation
conferred or imposed by the Company Law or any other relevant law or
administrative regulation which concerns our
affairs
|
|
·
|
a
fee (for each instrument of transfer) of HK dollar 2.50, or any higher fee
as agreed by the Hong Kong Stock Exchange, has been paid to
us;
|
|
·
|
the
instrument of transfer only involves H
Shares;
|
|
·
|
the
stamp duty chargeable on the instrument of transfer has been
paid;
|
|
·
|
the
relevant share certificate and upon the reasonable request of the board of
directors, any evidence in relation to the right of the transferor to
transfer the shares have been
submitted;
|
|
·
|
if
it is intended to transfer the shares to joint owners, then the maximum
number of joint owners must not exceed
four;
|
|
·
|
we
do not have any lien on the relevant
shares.
|
C.
|
Material
contracts
|
D.
|
Exchange
controls
|
Noon
Buying Rate
|
||||||||||||||||
Period
|
End
|
Average(1)
|
High
|
Low
|
||||||||||||
(RMB
per US$1.00)
|
||||||||||||||||
2004
|
8.2765 | 8.2767 | 8.2774 | 8.2764 | ||||||||||||
2005
|
8.0702 | 8.1826 | 8.2765 | 8.0702 | ||||||||||||
2006
|
7.8041 | 7.9579 | 8.0702 | 7.8041 | ||||||||||||
2007
|
7.2946 | 7.6052 | 8.0300 | 7.7232 | ||||||||||||
2008
|
6.8225 | 6.8193 | 7.2946 | 6.7800 | ||||||||||||
October
|
6.8388 | 6.8358 | 6.8521 | 6.8171 | ||||||||||||
November
|
6.8254 | 6.8281 | 6.8373 | 6.8220 | ||||||||||||
December
|
6.8225 | 6.8539 | 6.8842 | 6.8225 | ||||||||||||
2009 January
|
6.8392 | 6.8360 | 6.8392 | 6.8225 | ||||||||||||
February
|
6.8395 | 6.8363 | 6.8470 | 6.8241 | ||||||||||||
March
|
6.8329 | 6.8360 | 6.8438 | 6.8240 |
Note:
(1)
|
Annual
averages are calculated from month-end rates. Monthly averages are
calculated using the average of the daily rates during the relevant
period.
|
E.
|
Taxation
|
|
·
|
an
individual who is a citizen or resident of the United
States;
|
|
·
|
a
corporation, partnership or other entity created in or organized under the
laws of, the United States or any state or political subdivision
thereof;
|
|
·
|
an
estate the income of which is includible in gross income for United States
federal income tax purposes regardless of its
source;
|
|
·
|
a
trust the administration of which is subject to the primary supervision of
a United States court and which has one or more United States persons who
have the authority to control all substantial decisions of the trust;
or
|
|
·
|
a
trust that was in existence on August 20, 1996, was treated as a United
States person, for United States federal income tax purposes, on the
previous day and elected to continue to be so
treated.
|
|
·
|
has
not held the H shares or ADSs for at least 16 days in the 30-day period
beginning 15 days before the ex-dividend date, during which it is not
protected from risk of loss;
|
|
·
|
is
obligated to make payments related to the dividends;
or
|
|
·
|
subject
to the promulgation of future Treasury regulations that are anticipated to
be retroactively applied, holds the H shares or ADSs in an arrangement in
which the expected economic profit of the US Holder is insubstantial
compared to the value of the foreign tax credit expected to be obtained as
a result of the arrangement.
|
|
·
|
the
dividends received or gain recognized on the sale of H shares or ADSs by
such person are treated as effectively connected with the conduct of a
trade or business by such person in the United States as determined under
United States federal income tax law;
or
|
|
·
|
in
the case of gains recognized on a sale of H shares or ADSs by an
individual, such individual is present in the United States for 183 days
or more and certain other conditions are
met.
|
F.
|
Dividends
and paying agents
|
G.
|
Statement
by experts
|
H.
|
Documents
on display
|
I.
|
Subsidiary
information
|
ITEM
11
|
Quantitative
and Qualitative Disclosures About Market
Risk
|
(RMB
expressed in million, except interest rate and exchange
rate)
|
As
of December 31, 2008
|
||||||||||||||||||||||||||||||||
Expected
Maturity Date
|
Total
recorded value
|
Fair
value
|
||||||||||||||||||||||||||||||
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
|||||||||||||||||||||||||||
On-balance
sheet financial instruments
|
||||||||||||||||||||||||||||||||
Bank
balances and cash:
|
||||||||||||||||||||||||||||||||
In
US Dollar
|
157 | - | - | - | - | - | 157 | 157 | ||||||||||||||||||||||||
In
Japanese Yen
|
6 | - | - | - | - | - | 6 | 6 | ||||||||||||||||||||||||
Debts
|
||||||||||||||||||||||||||||||||
Fixed
rate bank loans (US Dollar)
|
656 | 649 | 647 | 158 | 35 | 54 | 2,199 | 2,266 | ||||||||||||||||||||||||
Average
interest rate
|
6.227% | 6.260% | 6.465% | 6.360% | 6.360% | 6.360% | ||||||||||||||||||||||||||
Fixed
rate bank loans (Euro)
|
52 | 52 | 51 | 51 | 51 | 280 | 537 | 466 | ||||||||||||||||||||||||
Average
interest rate
|
2.000% | 2.000% | 2.000% | 2.000% | 2.000% | 2.000% | ||||||||||||||||||||||||||
Variable
rate bank and other loans (US Dollar)
|
63 | 63 | 484 | 474 | 3,826 | 4,106 | 9,016 | 9,065 | ||||||||||||||||||||||||
Average
interest rate
|
3.164% | 3.162% | 3.174% | 3.187% | 2.901% | 2.895% | ||||||||||||||||||||||||||
Variable
rate other loans (JPY)
|
18 | 18 | 9 | - | - | - | 45 | 45 | ||||||||||||||||||||||||
Average
interest rate
|
1.311% | 1.311% | 1.311% | - | - | - | ||||||||||||||||||||||||||
Capital
commitments
(US Dollar)
|
28 | 17 | 2 | - | - | - | 47 | 47 | ||||||||||||||||||||||||
Capital
commitments (Euro)
|
1 | - | - | - | - | - | 1 | 1 | ||||||||||||||||||||||||
Gas
purchase commitments
(US
Dollar)
|
6,235 | 6,235 | 6,235 | 6,235 | 6,235 | 655 | 31,830 | 31,830 | ||||||||||||||||||||||||
Forward
exchange contracts
(Receive
US$/Pay S$)
|
||||||||||||||||||||||||||||||||
Contract
amount
|
2,234 | 67 | 4 | - | - | - | 2,305 | (11 | ) | |||||||||||||||||||||||
Average
Contractual Exchange
Rate
|
1.46 | 1.44 | 1.37 |
NA
|
NA
|
NA
|
NA
|
NA
|
(RMB
expressed in millions, except interest rate)
|
||||||||||||||||||||||||||||||||
As
of December 31, 2008
|
||||||||||||||||||||||||||||||||
Expected
Maturity Date
|
Total
recorded
value
|
Fair
value
|
||||||||||||||||||||||||||||||
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
|||||||||||||||||||||||||||
Debts
|
||||||||||||||||||||||||||||||||
Fixed rate shareholder's, bank and other loans
|
24,533 | 14,685 | 9,205 | 4,081 | 4,328 | 17,015 | 73,847 | 73,765 | ||||||||||||||||||||||||
Average interest rate
|
6.159% | 6.186% | 6.225% | 6.208% | 6.169% | 6.147% | ||||||||||||||||||||||||||
Variable rate bank and other loans
|
10,758 | 81 | 493 | 474 | 4,519 | 4,146 | 20,471 | 20,471 | ||||||||||||||||||||||||
Average interest rate
|
3.109% | 3.110% | 3.120% | 3.130% | 2.914% | 2.910% |
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Short-term bonds
|
5,096 | - | - | - | - | - | 5,096 | 5,096 | ||||||||||||||||||||||||
Average
interest rate
|
5.251% | - | - | - | - | - |
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Long-term
bonds
|
- | - | - | 985 | - | 8,850 | 9,835 | 11,306 | ||||||||||||||||||||||||
Average
interest rate
|
5.854% | 5.854% | 5.854% | 5.854% | 5.823% | 5.823% |
|
|
(1)
|
The
interest rates for variable rate bank and other loans are calculated based
on the individual year end indices.
|
As
of December 31, 2008
|
|||||||||||||||||||||||||||||
Expected
Maturity Date
|
Total
recorded
value
|
Fair
value
|
|||||||||||||||||||||||||||
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
||||||||||||||||||||||||
Fuel
swap contracts
|
|||||||||||||||||||||||||||||
Contract
Volumes (MT)
|
514,075 | 18,615 | 270 | - | - | - | 532,960 |
NA
|
|||||||||||||||||||||
Weighted
Average Price (US$/MT)
|
409.67 | 411.17 | 733.33 |
NA
|
NA
|
NA
|
NA
|
NA
|
|||||||||||||||||||||
Contract
Amount (RMB ’million)
|
1,439 | 53 | 1 | - | - | - | 1,493 |
(534)
|
ITEM
12
|
Description
of Securities Other than Equity
Securities
|
ITEM
13
|
Defaults,
Dividend Arrearages and
Delinquencies
|
ITEM
14
|
Material
Modifications to the Rights of Security Holders and Use of
Proceeds
|
ITEM
15
|
Controls
and Procedures
|
ITEM
16
|
Reserved
|
ITEM
16A
|
Audit
Committee Financial Expert
|
ITEM
16B
|
Code
of Ethics
|
ITEM
16C
|
Principal
Accountant Fees and Services
|
For
the year ended
December
31,
|
||||||||
(RMB
million)
|
2008
|
2007
|
||||||
Audit
fees
|
25.0 | 29.9 | ||||||
Audit-related
fees
|
0.2 | 0.5 | ||||||
Tax
fees
|
- | - | ||||||
All
other
fees
|
- | - | ||||||
Total
|
25.2 | 30.4 |
ITEM
16D
|
Exemptions
from the Listing Standards for Audit
Committees
|
ITEM
16E
|
Purchases
of Equity Securities by the Issuer and Affiliated
Purchasers
|
ITEM
16F
|
Change
in Registrant's Certifying
Accountant
|
ITEM
16G
|
Corporate
Governance
|
NYSE
corporate governance rules
|
Corporate
governance rules applicable to the domestically listed companies in China
and the Company’s governance practices
|
|
Director
Independence
|
||
A
listed company must have a majority of independent directors on its board
of directors. No director qualifies as “independent’’ unless the board of
directors affirmatively determines that the director has no material
relationship with the listed company (either directly or as a partner,
shareholder or officer of an organization that has a relationship with the
company). In addition, a director must meet certain standards to be deemed
independent. For example, a director is not independent if the director
is, or has been within the last three years, an employee of the listed
company, or if the director has received, during any twelve-month period
within the last three years, more than US$120,000 in direct compensation
from the listed company.
|
It
is required in China that any listed company must establish an independent
director system and set forth specific requirements for the qualification
of independent directors. For example, an independent director shall not
hold any other position in the listed company other than being a director
and shall not be influenced by the main shareholders or the controlling
persons of the listed company, or by any other entities or persons with
whom the listed company has a significant relationship. The Company has
complied with the relevant Chinese corporate governance rules and has
implemented internal rules governing the independence and responsibilities
of independent directors. The Company determines the independence of
independent directors every year.
|
|
To
empower non-management directors to serve as a more effective check on
management, the non-management directors of each listed company must meet
at regularly scheduled executive sessions without
management.
|
No
similar requirements.
|
|
Nominating/Corporate
Governance Committee
|
||
Listed
companies must have a nominating/corporate governance committee composed
entirely of independent directors.
|
The
board of directors of a listed company may, through the resolution of the
shareholders’ meeting, establish a nominating committee composed entirely
of directors, of which the independent directors shall be the majority and
the convener. The Company has established a nominating
committee.
|
The
nominating/corporate governance committee must have a written charter that
addresses the committee’s purposes and responsibilities which, at minimum,
must be to: search for eligible people for the board of directors, select
and nominate directors for the next session of the shareholders’ annual
meeting, study and propose corporate governance guidelines, supervise the
evaluation of the board of directors and management, and evaluate the
performance of the committee every year.
|
Relevant
responsibilities of the nominating/corporate governance committee are
similar to those stipulated by the NYSE rules, but the main
responsibilities do not include the research and recommendation of
corporate governance guidelines, the supervision of the evaluation of the
board of directors and management, or the annual evaluation of the
committee.
|
|
Compensation
Committee
|
||
Listed
companies must have a compensation committee composed entirely of
independent directors.
|
The
board of directors of a listed company can, through the resolution of
shareholders’ meeting, have a compensation and evaluation committee
composed entirely of directors, of whom the independent directors are the
majority and act as the convener.
|
|
The
written charter of the compensation committee must state, at least, the
following purposes and responsibilities:
|
The
responsibilities are similar to those stipulated by the NYSE rules, but
the committee is not required to produce a report on the executive
compensation or make an annual performance evaluation of the committee.
The board of directors of the Company has established a compensation and
evaluation committee composed mainly of independent directors who act as
the convener, and the committee has a written charter.
|
|
(1) review and approve the corporate goals associated with CEO’s
compensation, evaluate the performance of the CEO in fulfilling these
goals, and based on such evaluation determine and approve the CEO’s
compensation level;
|
||
(2) make recommendations to the board with respect to non-CEO executive
officer compensation, and incentive-compensation and equity-based plans
that are subject to board approval;
|
||
(3) produce a committee report on executive compensation as required by
the SEC to be included in the annual proxy statement or annual report
filed with the SEC.
|
||
The
charter must also include the requirement for an annual performance
evaluation of the compensation committee.
|
||
Audit
Committee
|
||
Listed
companies must have an audit committee that satisfies the requirements of
Rule 10A-3 of Exchange Act. It must have a minimum of three members, and
all audit committee members must satisfy the requirements for independence
set forth in Section 303A.02 of NYSE Corporate Governance Rules as well as
the requirements of Rule 10A-3b (1) of the Exchange Act.
|
The
board of directors of a listed company can, through the resolution of the
shareholders’ meeting, establish an audit committee composed entirely of
directors, of which the independent directors are the majority and act as
the convener, and, at minimum, one independent director is an accounting
professional.
|
|
The
written charter of the audit committee must specify that the purpose of
the audit committee is to assist the board oversight of the integrity of
financial statements,
|
The
responsibilities of the audit committee are similar to those stipulated by
the NYSE rules, but according to the domestic practices, the
Company
|
|
the
company’s compliance with legal and regulatory requirements,
qualifications and independence of independent auditors and the
performance of the listed company’s internal audit function and
independent auditors.
|
is
not required to make an annual performance evaluation of the audit
committee, and the audit committee is not required to prepare an audit
report to be included in the Company’s annual proxy statement. The Board
of Directors of the Company has established an audit committee that
satisfies relevant domestic requirements and the audit committee has a
written charter.
|
|
The
written charter must also require the audit committee to prepare an audit
committee report as required by the SEC to be included in the listed
company’s annual proxy statement as well as an annual performance
evaluation of the audit committee.
|
||
Each
listed company must have an internal audit department.
|
China
has a similar regulatory provision, and the Company has an internal audit
department.
|
|
Shareholders
must be given the opportunity to vote on equity-compensation plans and
material revisions thereto, except for employment incentive plans, certain
awards and plans in the context of mergers and
acquisitions.
|
The
relevant regulations of China require the board of directors to propose
plans on the amount and types of director compensation for the
shareholders’ meeting to approve. The compensation plan of executive
officers is subject to approval by the board and announced at the
shareholders’ meeting and disclosed to the public upon the approval of the
board of directors.
|
|
Corporate
governance guidelines
|
||
Listed
companies must adopt and disclose corporate governance guidelines,
involving director qualification standards, director compensation,
director continuing education, annual performance evaluation of the board
of directors, etc.
|
CSRC
has issued the Corporate Governance Rules, with which the Company has
complied.
|
|
Code
of ethics for directors, officers and employees
|
||
Listed
companies must adopt and disclose a code of business conduct and ethics
for directors, officers and employees, and promptly disclose any waivers
of the code for directors or executive officers.
|
China
does not have such requirement for a code for ethics. But, the directors
and officers must perform their legal responsibilities in accordance with
the Company Law of PRC, relative requirements of CSRC and Mandatory
Provisions to the Charter of Companies Listed Overseas.
|
|
Each
listed company’s CEO must certify to the NYSE each year that he or she is
not aware of any violation by the Company of NYSE corporate governance
listing standards and he or she must promptly notify the NYSE on writing
of any material non-compliance with any applicable provisions of Section
303A.
|
No
similar requirements.
|
ITEM
17
|
Financial
Statements
|
ITEM
18
|
Financial
Statements
|
ITEM
19
|
Exhibit
|
|
1.1
|
Articles
of Association dated June 13, 2006, incorporated by reference to Exhibit
1.1 of our annual report on Form 20-F for the year ended December 31,
2006, filed with the SEC on April 16,
2007.
|
|
3.1
|
Shareholders’
Agreement dated May 31, 1994, incorporated by reference to Exhibit 9.1 of
our Registration Statement on Form F-1, filed with the SEC on August 24,
1994. Amendment to Shareholders’ Agreement dated May 12, 2006,
incorporated by reference to Exhibit 3.1 of our annual report on Form 20-F
for the year ended December 31, 2006, filed with the SEC on April 16,
2007.
|
|
8
|
A
list of subsidiaries.
|
|
12.1
|
Certifications
of Principal Executive Officer pursuant to Rule 13a-14(a) promulgated
under the U.S. Securities Exchange Act of
1934.
|
|
12.2
|
Certifications
of Principal Financial Officer pursuant to Rule 13a-14(a) promulgated
under the U.S. Securities Exchange Act of
1934.
|
|
13.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
|
For
the year ended December 31,
|
||||||||||||||||||||
Note
|
2008
|
2007
|
2006
|
|||||||||||||||||
RMB
|
US$
|
RMB
|
RMB
|
|||||||||||||||||
Operating
revenue
|
67,563,815 | 9,885,555 | 49,767,849 | 44,301,403 | ||||||||||||||||
Sales
tax
|
(106,385 | ) | (15,565 | ) | (139,772 | ) | (148,057 | ) | ||||||||||||
Operating
expenses
|
||||||||||||||||||||
Fuel
|
(49,810,275 | ) | (7,287,958 | ) | (27,790,310 | ) | (22,608,151 | ) | ||||||||||||
Maintenance
|
(1,702,274 | ) | (249,067 | ) | (1,534,016 | ) | (1,306,888 | ) | ||||||||||||
Depreciation
|
(7,718,773 | ) | (1,129,367 | ) | (7,225,964 | ) | (6,719,158 | ) | ||||||||||||
Labor
|
(3,164,613 | ) | (463,028 | ) | (2,786,109 | ) | (2,886,767 | ) | ||||||||||||
Service
fees on transmission and
transformer
facilities of HIPDC
|
- | - | (140,771 | ) | (140,771 | ) | ||||||||||||||
Purchase
of electricity
|
(2,726,028 | ) | (398,857 | ) | - | - | ||||||||||||||
Others
|
(3,591,416 | ) | (525,476 | ) | (2,228,596 | ) | (1,933,200 | ) | ||||||||||||
Total
operating expense
|
(68,713,379 | ) | (10,053,753 | ) | (41,705,766 | ) | (35,594,935 | ) | ||||||||||||
(Loss)
/ Profit from operations
|
(1,255,949 | ) | (183,763 | ) | 7,922,311 | 8,558,411 | ||||||||||||||
Interest
income
|
83,522 | 12,220 | 53,527 | 51,910 | ||||||||||||||||
Interest
expense
|
(4,064,779 | ) | (594,735 | ) | (2,132,122 | ) | (1,591,033 | ) | ||||||||||||
Exchange gain and bank charges, net
|
356,836 | 52,210 | 204,134 | 67,819 | ||||||||||||||||
Total
financial expense, net
|
(3,624,421 | ) | (530,305 | ) | (1,874,461 | ) | (1,471,304 | ) | ||||||||||||
Share
of profit of associates
|
12
|
72,688 | 10,635 | 586,323 | 790,629 | |||||||||||||||
|
||||||||||||||||||||
(Loss)
/ Gain on fair value changes
|
6
|
(54,658 | ) | (7,997 | ) | 87,132 | 100,180 | |||||||||||||
Investment
income
|
51,061 | 7,471 | 585,379 | 28,415 | ||||||||||||||||
Other
income, net
|
5
|
19,723 | 2,886 | 12,617 | 10,442 | |||||||||||||||
(Loss)
/ Profit before income tax expense
|
6
|
(4,791,556 | ) | (701,073 | ) | 7,319,301 | 8,016,773 | |||||||||||||
Income
tax benefit / (expense)
|
35
|
239,723 | 35,075 | (838,270 | ) | (1,127,699 | ) | |||||||||||||
(Loss)
/ Profit for the year
|
(4,551,833 | ) | (665,998 | ) | 6,481,031 | 6,889,074 | ||||||||||||||
Attributable
to:
|
||||||||||||||||||||
Equity
holders of the Company
|
(3,937,688 | ) | (576,140 | ) | 6,161,127 | 6,071,154 | ||||||||||||||
Minority
interests
|
(614,145 | ) | (89,858 | ) | 319,904 | 817,920 | ||||||||||||||
(4,551,833 | ) | (665,998 | ) | 6,481,031 | 6,889,074 | |||||||||||||||
Dividends
paid
|
3,570,334 | 522,391 | 3,375,507 | 3,013,846 | ||||||||||||||||
Proposed
dividend
|
25
|
1,205,538 | 176,387 | 3,616,615 | 3,375,507 | |||||||||||||||
Proposed dividend per share (expressed
in RMB per share)
|
25
|
0.10 | 0.01 | 0.30 | 0.28 | |||||||||||||||
(Loss) / Earnings per share for (loss) /profit attributable to the equity
holders of the Company (expressed in RMB per share)
|
||||||||||||||||||||
- Basic and diluted
|
36
|
(0.33 | ) | (0.05 | ) | 0.51 | 0.50 |
As
of December 31,
|
||||||||||||||||
Note
|
2008
|
2007
|
||||||||||||||
RMB
|
US$
|
RMB
|
||||||||||||||
ASSETS
|
||||||||||||||||
Non-current
assets
|
||||||||||||||||
Property,
plant and equipment, net
|
11
|
116,737,198 | 17,080,326 | 90,125,919 | ||||||||||||
Investments
in associates
|
12
|
8,758,235 | 1,281,455 | 8,731,490 | ||||||||||||
Available-for-sale
financial assets
|
14
|
1,524,016 | 222,985 | 3,462,158 | ||||||||||||
Land
use rights
|
15
|
2,895,359 | 423,633 | 2,269,208 | ||||||||||||
Power
generation licence
|
16
|
3,811,906 | 557,737 | - | ||||||||||||
Deferred
income tax assets
|
33
|
316,699 | 46,338 | 211,654 | ||||||||||||
Goodwill
|
17
|
11,108,096 | 1,625,274 | 555,266 | ||||||||||||
Other
non-current assets
|
18
|
748,072 | 109,454 | 389,375 | ||||||||||||
Total
non-current assets
|
145,899,581 | 21,347,202 | 105,745,070 | |||||||||||||
Current
assets
|
||||||||||||||||
Inventories,
net
|
20
|
5,169,847 | 756,423 | 2,319,290 | ||||||||||||
Other
receivables and assets, net
|
21
|
1,099,720 | 160,904 | 822,691 | ||||||||||||
Accounts
receivable, net
|
22
|
7,794,500 | 1,140,447 | 7,876,318 | ||||||||||||
Prepaid
taxes
|
30
|
172,758 | 25,277 | - | ||||||||||||
Derivative
financial assets
|
19
|
15,479 | 2,265 | - | ||||||||||||
Bank
balances and cash
|
37
|
5,765,873 | 843,630 | 7,532,760 | ||||||||||||
Total
current assets
|
20,018,177 | 2,928,946 | 18,551,059 | |||||||||||||
Total
assets
|
165,917,758 | 24,276,148 | 124,296,129 | |||||||||||||
As
of December 31,
|
||||||||||||||||
Note
|
2008
|
2007
|
||||||||||||||
RMB
|
US$
|
RMB
|
||||||||||||||
EQUITY
AND LIABILITIES
|
||||||||||||||||
Capital and reserves attributable to equity holders of the
Company
|
||||||||||||||||
Share
capital
|
23
|
12,055,383 | 1,763,875 | 12,055,383 | ||||||||||||
Capital
surplus
|
8,642,617 | 1,264,539 | 10,663,422 | |||||||||||||
Surplus
reserves
|
24
|
6,096,100 | 891,947 | 6,096,100 | ||||||||||||
Currency
translation differences
|
(534,433 | ) | (78,195 | ) | - | |||||||||||
Retained
earnings
|
||||||||||||||||
Proposed
dividend
|
25
|
1,205,538 | 176,387 | 3,616,615 | ||||||||||||
Others
|
9,364,115 | 1,370,105 | 14,497,060 | |||||||||||||
36,829,320 | 5,388,658 | 46,928,580 | ||||||||||||||
Minority
interests
|
5,730,633 | 838,474 | 5,151,062 | |||||||||||||
Total
equity
|
42,559,953 | 6,227,132 | 52,079,642 | |||||||||||||
Non-current liabilities
|
||||||||||||||||
Long-term loans
|
26
|
59,027,181 | 8,636,523 | 33,438,647 | ||||||||||||
Long-term
bonds
|
27
|
9,834,688 | 1,438,956 | 5,885,615 | ||||||||||||
Deferred
income tax liabilities
|
33
|
1,371,572 | 200,681 | 1,092,545 | ||||||||||||
Derivative
financial liabilities
|
19
|
17,242 | 2,523 | - | ||||||||||||
Other
non-current liabilities
|
28
|
620,922 | 90,849 | 423,119 | ||||||||||||
Total
non-current liabilities
|
70,871,605 | 10,369,532 | 40,839,926 | |||||||||||||
Current liabilities
|
||||||||||||||||
Accounts
payable and other liabilities
|
29
|
10,867,480 | 1,590,068 | 9,241,069 | ||||||||||||
Taxes
payables
|
30
|
420,464 | 61,520 | 955,334 | ||||||||||||
Dividends
payable
|
56,734 | 8,301 | 12,150 | |||||||||||||
Salary
and welfare payables
|
212,236 | 31,053 | 213,403 | |||||||||||||
Derivative
financial liabilities
|
19
|
542,442 | 79,367 | - | ||||||||||||
Short-term
bonds
|
31
|
5,095,936 | 745,609 | 5,064,690 | ||||||||||||
Short-term
loans
|
32
|
28,745,488 | 4,205,877 | 11,670,400 | ||||||||||||
Current portion of long-term loans
|
26
|
6,545,420 | 957,689 | 4,219,515 | ||||||||||||
Total
current liabilities
|
52,486,200 | 7,679,484 | 31,376,561 | |||||||||||||
Total
equity and liabilities
|
165,917,758 | 24,276,148 | 124,296,129 |
Attributable
to equity holders of the Company
|
Minority
interests
|
Total
equity
|
|||||||||||||||||||
Share
capital
|
Capital
surplus
|
Surplus
reserves
|
Currency
translation
differences
|
Retained
earnings
|
|||||||||||||||||
Additional
paid-in capital
|
Hedging
reserve
|
Available-for-sale
financial asset revaluation reserve
|
Subtotal
|
Statutory
and discretionary surplus reserve funds
|
Statutory
public welfare fund
|
||||||||||||||||
Balance
as of January 1, 2006
|
12,055,383
|
8,988,107
|
-
|
636,964
|
9,625,071
|
2,682,424
|
2,217,005
|
-
|
13,457,591
|
6,106,713
|
46,144,187
|
||||||||||
Changes
in equity for the year ended December 31, 2006
|
|
|
|
||||||||||||||||||
Fair
value changes from available-for-sale financial asset –
gross
|
-
|
-
|
-
|
425,769
|
425,769
|
-
|
|
-
|
-
|
-
|
-
|
425,769
|
|||||||||
Fair
value changes from available-for-sale financial asset –
tax
|
-
|
-
|
-
|
(63,908)
|
(63,908)
|
-
|
-
|
-
|
-
|
-
|
(63,908)
|
||||||||||
Net
income recognized directly in equity
|
-
|
-
|
-
|
361,861
|
361,861
|
-
|
-
|
-
|
-
|
-
|
361,861
|
||||||||||
Profit
for the year ended December 31, 2006
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6,071,154
|
817,920
|
6,889,074
|
||||||||||
Total
recognized income and expense for the year ended December 31,
2006
|
-
|
-
|
-
|
361,861
|
361,861
|
-
|
-
|
-
|
6,071,154
|
817,920
|
7,250,935
|
||||||||||
Net
capital injection from minority shareholders of
subsidiaries
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
588,201
|
588,201
|
|||||||||
Dividends
waived by a shareholder of a subsidiary
|
-
|
866
|
-
|
-
|
866
|
-
|
-
|
-
|
-
|
|
495
|
1,361
|
|||||||||
Dividends
relating to 2005
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3,013,846)
|
|
(362,146)
|
(3,375,992)
|
|||||||||
Transfer
from statutory public welfare fund to statutory surplus reserve
fund
|
-
|
-
|
-
|
-
|
-
|
2,217,005
|
(2,217,005)
|
-
|
-
|
-
|
-
|
||||||||||
Transfer
to dedicated capital (Note 24)
|
-
|
-
|
-
|
-
|
|
555,038
|
-
|
-
|
(555,038)
|
-
|
-
|
||||||||||
Balance
as of December 31, 2006
|
12,055,383
|
8,988,973
|
-
|
998,825
|
9,987,798
|
5,454,467
|
-
|
-
|
15,959,861
|
7,151,183
|
50,608,692
|
||||||||||
|
|
|
|
||||||||||||||||||
Balance
as of January 1, 2007
|
12,055,383
|
8,988,973
|
-
|
998,825
|
9,987,798
|
5,454,467
|
-
|
-
|
15,959,861
|
7,151,183
|
50,608,692
|
||||||||||
Changes
in equity for the year ended December 31, 2007
|
|
|
|
|
|||||||||||||||||
Fair
value changes from available-for-sale financial asset – gross (Note
14)
|
-
|
-
|
-
|
1,607,251
|
1,607,251
|
-
|
-
|
-
|
-
|
-
|
1,607,251
|
||||||||||
Fair
value changes from available-for-sale financial asset – tax (Note
33)
|
-
|
-
|
-
|
(483,366)
|
(483,366)
|
-
|
-
|
-
|
-
|
-
|
(483,366)
|
||||||||||
Reversal
of deferred income tax
|
-
|
-
|
-
|
79,105
|
79,105
|
-
|
-
|
-
|
-
|
-
|
79,105
|
||||||||||
Disposals
of available-for-sale financial asset
|
-
|
-
|
-
|
(527,366)
|
(527,366)
|
-
|
-
|
-
|
-
|
-
|
(527,366)
|
||||||||||
Net
income recognized directly in equity
|
-
|
-
|
-
|
675,624
|
675,624
|
-
|
-
|
-
|
-
|
-
|
675,624
|
||||||||||
Profit
for the year ended December 31, 2007
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6,161,127
|
319,904
|
6,481,031
|
||||||||||
Total
recognized income and expense for the year ended December 31,
2007
|
-
|
-
|
-
|
675,624
|
675,624
|
-
|
-
|
-
|
6,161,127
|
319,904
|
7,156,655
|
||||||||||
Deemed
disposal of a subsidiary (Note 12)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,216,278)
|
(2,216,278)
|
||||||||||
Acquisition
of a subsidiary
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
225,718
|
225,718
|
||||||||||
Net
capital injection from minority shareholders of
subsidiaries
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
116,890
|
116,890
|
||||||||||
Dividends
relating to 2006
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3,375,507)
|
(446,355)
|
(3,821,862)
|
||||||||||
Transfer
to dedicated capital (Note 24)
|
-
|
-
|
-
|
-
|
-
|
631,806
|
-
|
-
|
(631,806)
|
-
|
-
|
||||||||||
Others
|
-
|
-
|
-
|
-
|
-
|
9,827
|
-
|
-
|
-
|
-
|
9,827
|
||||||||||
Balance
as of December 31, 2007
|
12,055,383
|
8,988,973
|
-
|
1,674,449
|
10,663,422
|
6,096,100
|
-
|
-
|
18,113,675
|
5,151,062
|
52,079,642
|
Attributable
to equity holders of the Company
|
Minority
interests
|
Total
equity
|
||||||||||||||||||||
Share
capital
|
Capital
surplus
|
Surplus
reserves
|
Currency
translation
differences
|
Retained
earnings
|
||||||||||||||||||
Additional
paid-in capital
|
Hedging
reserve
|
Available-for-sale
financial asset revaluation reserve
|
Subtotal
|
|||||||||||||||||||
Balance
as of January 1, 2008
|
12,055,383 | 8,988,973 | - | 1,674,449 | 10,663,422 | 6,096,100 | - | 18,113,675 | 5,151,062 | 52,079,642 | ||||||||||||
Changes
in equity for the year ended December 31, 2008
|
||||||||||||||||||||||
Fair
value changes from available-for-sale financial asset – gross (Note
14)
|
- | - | - | (2,080,389 | ) | (2,080,389 | ) | - | - | - | - | (2,080,389 | ) | |||||||||
Fair
value changes from available-for-sale financial asset – tax (Note
33)
|
- | - | - | 520,097 | 520,097 | - | - | - | - | 520,097 | ||||||||||||
Changes
in fair value of effective portion of cash flow hedge -
gross
|
- | - | (1,059,646 | ) | - | (1,059,646 | ) | - | - | - | - | (1,059,646 | ) | |||||||||
Changes
in fair value of effective portion of cash flow hedge -
tax
|
- | - | 190,736 | - | 190,736 | - | - | - | - | 190,736 | ||||||||||||
Cash
flow hedge recorded in shareholders’ equity transferred to profit and
loss-gross
|
- | - | 478,426 | - | 478,426 | - | - | - | - | 478,426 | ||||||||||||
Cash
flow hedge recorded in shareholders’ equity transferred to profit and loss
- tax
|
- | - | (86,117 | ) | - | (86,117 | ) | - | - | - | - | (86,117 | ) | |||||||||
Net
expenses recognized directly in equity
|
- | - | (476,601 | ) | (1,560,292 | ) | (2,036,893 | ) | - | - | - | - | (2,036,893 | ) | ||||||||
Loss
for the year ended December 31, 2008
|
- | - | - | - | - | - | - | (3,937,688 | ) | (614,145 | ) | (4,551,833 | ) | |||||||||
Total
recognized income and expense for the year ended December 31,
2008
|
- | - | (476,601 | ) | (1,560,292 | ) | (2,036,893 | ) | - | - | (3,937,688 | ) | (614,145 | ) | (6,588,726 | ) | ||||||
Acquisitions
of subsidiaries (Note 40)
|
- | - | - | - | - | - | - | - | 35,047 | 35,047 | ||||||||||||
Dividends
relating to 2007
|
- | - | - | - | - | - | - | (3,606,334 | ) | (310,246 | ) | (3,916,580 | ) | |||||||||
Net
capital injection from minority shareholders of
subsidiaries
|
- | - | - | - | - | - | - | - | 1,522,730 | 1,522,730 | ||||||||||||
Acquisition
of minority interest of a subsidiary
|
- | - | - | - | - | - | - | - | (55,867 | ) | (55,867 | ) | ||||||||||
Currency
translation differences
|
- | - | - | - | - | - | (534,433 | ) | - | (2,205 | ) | (536,638 | ) | |||||||||
Others
|
- | 16,088 | - | - | 16,088 | - | - | - | 4,257 | 20,345 | ||||||||||||
Balance
as of December 31, 2008
|
12,055,383 | 9,005,061 | (476,601 | ) | 114,157 | 8,642,617 | 6,096,100 | (534,433 | ) | 10,569,653 | 5,730,633 | 42,559,953 |
For
the year ended December 31,
|
|||||||||||||||||
Note
|
2008
|
2007
|
2006
|
||||||||||||||
RMB
|
US$
|
RMB
|
RMB
|
||||||||||||||
Restate
|
Restate
|
||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|||||||||||||||||
(Loss)
/ Profit before income tax expense
|
(4,791,556 | ) | (701,073 | ) | 7,319,301 | 8,016,773 | |||||||||||
Adjustments
to reconcile (loss) / profit before income tax expense to net cash
provided by operating activities:
|
|||||||||||||||||
Depreciation
|
7,752,706 | 1,134,332 | 7,229,108 | 6,721,684 | |||||||||||||
Provision for impairment loss on property, plant and
equipment
|
- | - | 7,044 | 11,920 | |||||||||||||
Amortization
of land use rights
|
74,800 | 10,944 | 46,447 | 42,484 | |||||||||||||
Amortization of other non-current assets
|
44,478 | 6,508 | 17,813 | 15,719 | |||||||||||||
Amortization of housing loss
|
36,751 | 5,377 | 38,059 | 38,810 | |||||||||||||
Amortization of bonds issuance expense
|
4,302 | 629 | 17,403 | 19,052 | |||||||||||||
Excess of acquirer’s interest in the net fair value of acquiree’s
identifiable assets, liabilities and contingent liabilities over
cost
|
- | - | - | (24,758 | ) | ||||||||||||
Gain on deemed disposal of Huaneng Sichuan Hydropower Co., Ltd.
(“Sichuan Hydropower”)
|
- | - | (17,864 | ) | - | ||||||||||||
Gain on disposal of available-for-sale financial asset
|
- | - | (527,366 | ) | - | ||||||||||||
Provision for impairment on goodwill
|
130,224 | 19,054 | - | - | |||||||||||||
Provision for / (Reversal of) provision for doubtful
accounts
|
10,951 | 1,602 | (1,466 | ) | (4,853 | ) | |||||||||||
Provision for / (Reversal of) inventory
obsolescence
|
3,901 | 571 | (6,615 | ) | 1,808 | ||||||||||||
Loss / (Gain) on fair value changes
|
54,658 | 7,997 | (87,132 | ) | (100,180 | ) | |||||||||||
Investment income
|
(51,061 | ) | (7,471 | ) | (40,149 | ) | (28,415 | ) | |||||||||
Loss / (Gain) on disposals or write-off of property, plant and
equipment, net
|
54,056 | 7,909 | (238,037 | ) | 100,018 | ||||||||||||
Unrealized exchange gain, net
|
(410,827 | ) | (60,110 | ) | (231,795 | ) | (112,254 | ) | |||||||||
Share
of profit of associates
|
(72,688 | ) | (10,635 | ) | (586,323 | ) | (790,629 | ) | |||||||||
Interest
income
|
(83,522 | ) | (12,220 | ) | (53,527 | ) | (51,910 | ) | |||||||||
Interest
expense
|
4,064,779 | 594,735 | 2,132,122 | 1,591,033 | |||||||||||||
Changes
in working capital:
|
|||||||||||||||||
Inventories
|
(2,159,007 | ) | (315,894 | ) | (190,332 | ) | 188,060 | ||||||||||
Other
receivables and assets
|
104,165 | 15,241 | (201,660 | ) | (107,126 | ) | |||||||||||
Accounts
receivable
|
566,249 | 82,850 | (1,498,184 | ) | (883,033 | ) | |||||||||||
Restricted
cash
|
21,247 | 3,109 | (13,520 | ) | (2,587 | ) | |||||||||||
Other
non-current liabilities
|
- | - | 251,761 | 183,003 | |||||||||||||
Accounts payable and other liabilities
|
566,371 | 82,868 | 195,770 | 179,438 | |||||||||||||
Taxes
payable
|
(370,796 | ) | (54,253 | ) | (40,650 | ) | 151,412 | ||||||||||
Salary
and welfare payables
|
(22,345 | ) | (3,269 | ) | (270,994 | ) | 189,641 | ||||||||||
Others
|
(35 | ) | (4 | ) | (31,073 | ) | 1,790 | ||||||||||
Interest
received
|
72,940 | 10,672 | 52,825 | 53,444 | |||||||||||||
Income
tax expense paid
|
(414,848 | ) | (60,698 | ) | (1,192,133 | ) | (1,394,503 | ) | |||||||||
Net
cash provided by operating activities
|
5,185,893 | 758,771 | 12,078,833 | 14,005,841 |
For
the year ended December 31,
|
||||||||||||||||||||
Note
|
2008
|
2007
|
2006
|
|||||||||||||||||
RMB
|
US$
|
RMB
|
RMB
|
|||||||||||||||||
Restate
|
Restate
|
|||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||
Purchase
of property, plant and equipment
|
(27,893,520 | ) | (4,081,222 | ) | (14,223,310 | ) | (15,998,575 | ) | ||||||||||||
Proceeds
from disposals of property, plant and equipment, net
|
25,336 | 3,707 | 270,131 | 32,180 | ||||||||||||||||
Prepayments
of land use rights
|
(76,050 | ) | (11,127 | ) | (216,752 | ) | (250,627 | ) | ||||||||||||
Prepayments
of territorial waters use right
|
- | - | (152,409 | ) | - | |||||||||||||||
Increase
in other non-current assets
|
(16,004 | ) | (2,342 | ) | (6,247 | ) | (8,973 | ) | ||||||||||||
Decrease
in temporary cash investments
|
- | - | - | 2,652 | ||||||||||||||||
Cash
dividend received
|
381,854 | 55,871 | 518,934 | 482,609 | ||||||||||||||||
Capital
injections in associates
|
(281,754 | ) | (41,225 | ) | (1,654,000 | ) | (174,918 | ) | ||||||||||||
Purchases
of financial assets at fair value through profit or loss
|
- | - | (370,189 | ) | - | |||||||||||||||
Cash
paid for acquiring available-for-sale financial assets
|
(146,375 | ) | (21,417 | ) | (449,457 | ) | - | |||||||||||||
Proceeds
from trading of available-for-sale financial assets
|
- | - | 603,411 | - | ||||||||||||||||
Cash
consideration paid for acquisitions
|
(21,772,563 | ) | (3,185,638 | ) | (485,750 | ) | - | |||||||||||||
Acquisition
of minority interest of a subsidiary
|
(67,485 | ) | (9,874 | ) | - | - | ||||||||||||||
Cash
from acquisition of a subsidiary
|
40
|
1,624,108 | 237,630 | 259,924 | - | |||||||||||||||
Cash
outflow upon deemed disposal of Sichuan Hydropower
|
- | - | (322,176 | ) | - | |||||||||||||||
Cash
received on repayment of a loan receivable
|
254,255 | 37,201 | - | - | ||||||||||||||||
Others
|
11,133 | 1,630 | (29,465 | ) | 110 | |||||||||||||||
Net
cash used in investing activities
|
(47,957,065 | ) | (7,016,806 | ) | (16,257,355 | ) | (15,915,542 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||
Issuance
of short-term bonds
|
4,980,000 | 728,645 | 4,980,000 | 4,980,000 | ||||||||||||||||
Repayments
of short-term bonds
|
(5,000,000 | ) | (731,572 | ) | (5,000,000 | ) | (4,862,200 | ) | ||||||||||||
Drawdown
of short-term loans
|
57,696,660 | 8,441,849 | 23,898,505 | 14,458,700 | ||||||||||||||||
Repayments
of short-term loans
|
(39,483,770 | ) | (5,777,041 | ) | (19,771,700 | ) | (13,215,850 | ) | ||||||||||||
Drawdown
of long-term bank loans
|
36,510,900 | 5,342,068 | 8,186,176 | 9,982,982 | ||||||||||||||||
Repayments
of long-term bank loans
|
(8,265,180 | ) | (1,209,314 | ) | (3,282,102 | ) | (3,010,623 | ) | ||||||||||||
Drawdown
of other long-term loans
|
145,386 | 21,272 | - | 40,000 | ||||||||||||||||
Repayments
of other long-term loans
|
(1,989,258 | ) | (291,057 | ) | (210,873 | ) | (472,154 | ) | ||||||||||||
Issuance
of long-term bonds
|
3,933,302 | 575,498 | 5,903,644 | - | ||||||||||||||||
Interest
paid
|
(4,731,749 | ) | (692,323 | ) | (2,722,935 | ) | (2,507,354 | ) | ||||||||||||
Net
capital injection from minority shareholders of the
subsidiaries
|
1,162,562 | 170,099 | 116,890 | 588,708 | ||||||||||||||||
Government
grants
|
236,013 | 34,532 | - | - | ||||||||||||||||
Dividends
paid to shareholders of the Company
|
(3,570,334 | ) | (522,391 | ) | (3,375,507 | ) | (3,013,846 | ) | ||||||||||||
Dividends
paid to minority shareholders of the subsidiaries
|
(301,662 | ) | (44,137 | ) | (434,205 | ) | (495,361 | ) | ||||||||||||
Others
|
(67,579 | ) | (9,888 | ) | - | - | ||||||||||||||
Net
cash provided by financing activities
|
41,255,291 | 6,036,240 | 8,287,893 | 2,473,002 | ||||||||||||||||
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS
|
(1,515,881 | ) | (221,795 | ) | 4,109,371 | 563,301 | ||||||||||||||
Cash and cash equivalents, beginning of the year
|
7,312,265 | 1,001,049 | 3,207,192 | 2,647,665 | ||||||||||||||||
Exchange loss
|
(229,759 | ) | 35,223 | (4,298 | ) | (3,774 | ) | |||||||||||||
CASH AND CASH EQUIVALENTS, END OF THE YEAR
|
37
|
5,566,625 | 814,477 | 7,312,265 | 3,207,192 |
|
(b)
|
Consolidation
(cont’d)
|
|
(c)
|
Segment
reporting
|
|
(d)
|
Foreign
currency translation
|
|
(e)
Property, plant and equipment, net
(cont’d)
|
2008
|
2007
|
|||
Port
facilities
|
20
– 40 years
|
N/A
|
||
Buildings
|
8 –
35 years
|
15
– 35 years
|
||
Electric
utility plant in service
|
5 –
35 years
|
7 –
35 years
|
||
Transportation
facilities
|
6 –
14 years
|
6 –
15 years
|
||
Others
|
3 –
18 years
|
4 –
18 years
|
|
* |
The
adjustment of the useful life from 2007 to 2008 was primarily attributable
to the establishment of Huaneng Yingkou Port Limited Liability Company,
which has property, plant and equipments with longer useful lives compared
with the remaining of the Company and its
subsidiaries.
|
2. | PRINCIPAL ACCOUNTING POLICIES (CONT’D) |
(j) Inventories | |
Inventories include fuel for power generation, materials for repairs and maintenance and spare parts, etc. and are stated at lower of cost and net realizable values. | |
Inventories are initially recorded at cost and are charged to fuel costs or repairs and maintenance respectively when used, or capitalized to property, plant and equipment when installed, as appropriate, using weighted average cost basis. Cost of inventories includes costs of purchase and transportation costs. | |
When the forecast transaction that is hedged results in the recognition of the inventory, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the inventory. | |
Provision for inventory obsolescence is determined by the excess of cost over net realizable value. Net realizable values are determined based on the estimated selling price less estimated conversion costs during power generation, selling expenses and related taxes in the ordinary course of business. | |
|
(k)
Loans and receivables
|
Loans and receivables including accounts receivable, notes receivable, other receivables, etc. are recognized initially at fair value. Loans and receivables are subsequently measured at amortized cost less provision for doubtful debts using the effective interest method. | |
When there is objective evidence that the Company and its subsidiaries will not be able to collect all amounts due according to the original terms of the receivables, impairment test is performed on individual account and related provision for doubtful accounts is made based on the shortfall between carrying amounts and respective present value of estimated future cash flow. The carrying amounts of the receivables are reduced through the use of allowance accounts, and the amount of the provision is recognized in the income statement within ‘operating expenses – others’. When a receivable is uncollectible, it is written off against the allowance account for the receivable. Subsequent recoveries of amounts previously written off are credited against ‘operating expenses – others’ in the income statement. |
|
(iii)
|
Current
and deferred income tax (cont’d)
|
On March 16, 2007, the National People’s Congress promulgated the “Corporate Income Tax Law of the People’s Republic of China” which became effective from January 1, 2008. Domestic entities of the Company and its subsidiaries which originally enjoyed preferential tax treatments will transit to 25% gradually in five years from January 1, 2008 onwards. Domestic subsidiaries with original applicable tax rate of 33% apply tax rate of 25% from January 1, 2008 onwards. Pursuant to Guo Fa [2007]39 document, starting from January 1, 2008, entities which originally enjoyed two-year tax exemption and three-year 50% reduction tax treatments, continue to follow the original tax laws, administrative regulations and relevant documents until respective expiration dates. However, those not being entitled to preferential tax treatment as a result of tax losses, the preferential period started from 2008 onwards. | |
|
The
oversea subsidiaries of the Company applies income tax rate of
18%.
|
|
Pursuant
to Guo Shui Han [2009]33 document, starting from January 1, 2008, the
Company and its branches calculate and pay income tax on a combined basis
according to relevant tax laws and regulations. The original regulation
specifying locations for power plants and branches of the Company to make
enterprise income tax payments was abolished. The income tax of
subsidiaries remains to be calculated individually based on their
individual operating results.
|
|
Deferred
income tax assets and liabilities are recognized based on the differences
between tax bases of assets and liabilities and respective book value
(temporary differences). For deductible tax losses or tax credit that can
be brought forward in accordance with tax law requirements for deduction
of taxable income in subsequent years, it is considered as temporary
differences and related deferred income tax assets are
recognized. No deferred income tax liability is recognized for
temporary difference arising from initial recognition of
goodwill. For those temporary differences arising from initial
recognition of an asset or liability in a non-business combination
transaction that affects neither accounting profit nor taxable profit (or
deductible loss) at the time of the transaction, no deferred income tax
asset and liability is recognized.
|
|
The
Company and its subsidiaries recognize deferred income tax assets to the
extent that it is probable that taxable profit will be available to offset
the deductible temporary difference, deductible tax loss and tax
credit.
|
|
On
the balance sheet date, deferred income tax assets and liabilities are
measured at the tax rates that are expected to apply to the period when
the asset is realized or liability is settled.
|
Deferred income tax assets and deferred income tax liabilities are offset when meeting all the conditions below: |
|
(1)
The Company and its subsidiaries have the legal enforceable right to
settle current income tax assets and current income tax
liabilities;
|
|
(2)
Deferred income tax assets and deferred income tax liabilities are related
to the income tax levied by the same tax authority of the Company and its
subsidiaries.
|
|
2.
|
PRINCIPAL
ACCOUNTING POLICIES (CONT’D)
|
|
(t)
|
Leases
|
|
2.
|
PRINCIPAL
ACCOUNTING POLICIES (CONT’D)
|
|
2.
|
PRINCIPAL
ACCOUNTING POLICIES (CONT’D)
|
|
(z)
Standards and amendments to published standards that are not yet effective
but relevant to the Company and its
subsidiaries
|
|
·
|
International
Accounting Standard (“IAS”) 1 (Revised), ‘Presentation of financial
statements’ (effective from January 1, 2009). The revised standard will
prohibit the presentation of items of income and expenses (i.e. ,
'non-owner changes in equity') in the statement of changes in equity,
requiring 'non-owner changes in equity' to be presented separately from
owner changes in equity. All non-owner changes in equity will be required
to be shown in a performance statement, but entities can choose whether to
present one performance statement (the statement of comprehensive income)
or two statements (the consolidated income statement and statement of
comprehensive income). Where entities restate or reclassify comparative
information, they will be required to present a restated balance sheet as
of the beginning comparative period in addition to the current requirement
to present balance sheets at the end of the current period and comparative
period. The Company and its subsidiaries will apply IAS1 (Revised) from
January 1, 2009. It is likely that both the consolidated income statement
and statement of comprehensive income will be presented as performance
statements.
|
· |
IAS
23 (Revised), ‘Borrowing costs’ (effective from January 1, 2009). The
amendment requires an entity to capitalize borrowing costs directly
attributable to the acquisition, construction or production of a
qualifying asset (one that takes a substantial period of time to get ready
for use or sale) as part of the cost of that asset. The option of
immediately expensing those borrowing costs will be removed. The Company
and its subsidiaries will apply IAS 23 (Revised) from January 1, 2009. The
adoption of IAS 23 (Revised) will not affect the Company and its
subsidiaries as interest and other costs on borrowings to finance the
construction of property, plant and equipment are capitalized under the
existing accounting policy of the Company and its
subsidiaries.
|
|
· |
IAS
27 (Revised), ‘Consolidated and separate financial statements’ (effective
from July 1, 2009). The revised standard requires the effects of all
transactions with non-controlling interests to be recorded in equity if
there is no change in control and these transactions will no longer result
in goodwill or gains and losses. The standard also specifies the
accounting when control is lost. Any remaining interest in the entity is
re-measured to fair value and a gain or loss is recognized in income
statement. The Company and its subsidiaries will apply this standard
prospectively to transactions with non-controlling interests from January
1, 2010.
|
|
2.
|
PRINCIPAL
ACCOUNTING POLICIES (CONT’D)
|
(z)
|
Standards
and amendments to published standards that are not yet effective but
relevant to the Company and its subsidiaries (cont’d)
|
||
·
|
IFRS
3 (Revised), ‘Business combinations’ (effective from July 1, 2009). The
revised standard continues to apply the acquisition method to business
combinations, with some significant changes. For example, all payments to
purchase a business are to be recorded at fair value at the acquisition
date, with contingent payments classified as debt subsequently re-measured
through the consolidated income statement. There is a choice on
an acquisition by acquisition basis to measure the non-controlling
interest in the acquiree either at fair value or at the non-controlling
interest’s proportionate share of the acquiree’s net
assets. All acquisition-related costs should be expensed. The
Company and subsidiaries will apply this standard prospectively to all
business combinations from January 1, 2010.
|
||
·
|
IFRS
8, ‘Operating segments’ (effective from January 1, 2009). IFRS
8 replaces IAS 14 ‘Segment Reporting’ and requires a ‘management
approach’, under which segment information is presented on the same basis
as that used for internal reporting purpose. The Company and its
subsidiaries will apply IFRS 8 from January 1, 2009. Management considered
there is no material impact from adopting this new standard on the
financial statements of the Company and its
subsidiaries.
|
||
IASB’s annual improvements project published in May 2008 | |||
·
|
IAS
1 (Amendment), ‘Presentation of financial statements’ (effective from
January 1, 2009). The amendment clarifies that some rather than all
financial assets and liabilities classified as held for trading in
accordance with IAS 39, ‘Financial instruments: recognition and
measurement’ are examples of current assets and liabilities respectively.
The Company and its subsidiaries will apply the IAS 1 (Amendment) from
January 1, 2009. It is not expected to have an impact on
financial statements of the Company and its
subsidiaries.
|
||
·
|
IAS
28 (Amendment), ‘Investments in associates’ (and consequential amendments
to IAS 32, ‘Financial instruments: presentation’ and IFRS 7, ‘Financial
instruments: disclosures’) (effective from January 1, 2009). An
investment in an associate is treated as a single asset for the purposes
of impairment testing and any impairment loss is not allocated to specific
assets included within the investment, for example, goodwill. Reversals of
impairment are recorded as an adjustment to the investment balance to the
extent that the recoverable amount of the associate increases. The Company
and its subsidiaries will apply the IAS 28 (Amendment) to impairment tests
related to investments in associates and any related impairment losses
from January 1,
2009.
|
|
2.
|
PRINCIPAL
ACCOUNTING POLICIES (CONT’D)
|
(z)
|
Standards
and amendments to published standards that are not yet effective but
relevant to the Company and its subsidiaries (cont’d)
|
|||||
IASB’s
annual improvements project published in May 2008
(cont’d)
|
||||||
·
|
IAS
36 (Amendment), ‘Impairment of assets’ (effective from January 1, 2009).
Where fair value less costs to sell is calculated on the basis of
discounted cash flows, disclosures equivalent to those for value-in-use
calculation should be made. The Company and its subsidiaries will apply
the IAS 36 (Amendment) and provide the required disclosure where
applicable for impairment tests from January 1, 2009.
|
|||||
·
|
IAS
38 (Amendment), ‘Intangible assets’ (effective from January 1,
2009). The amendment deletes the wording that states that there
is ‘rarely, if ever’ support for use of a method that results in a lower
rate of amortization than the straight line method. The Company and its
subsidiaries will apply the IAS 38 (Amendment) from January 1,
2009.
|
|||||
·
|
IAS
39 (Amendment), ‘Financial instruments: recognition and measurement’
(effective from January 1, 2009).
|
|||||
Ø
|
This
amendment clarifies that it is possible for there to be movements into and
out of the fair value through profit or loss category where a derivative
commences or ceases to qualify as a hedging instrument in cash flow or net
investment hedge. The definition of financial asset or financial liability
at fair value through profit or loss as it relates to items that are held
for trading is also amended.
|
|||||
Ø
|
The
current guidance on designating and documenting hedges states that a
hedging instrument needs to involve a party external to the reporting
entity and cites a segment as an example of a reporting
entity.
|
|||||
Ø
|
When
remeasuring the carrying amount of a debt instrument on cessation of fair
value hedge accounting, the amendment clarifies that a revised effective
interest rate (calculated at the date fair value hedge accounting ceases)
are used.
|
|||||
The
Company and its subsidiaries will apply the IAS 39 (Amendment) from
January 1, 2009. It is not expected to have material impact on
income statement of the Company and its
subsidiaries.
|
|
2.
|
PRINCIPAL
ACCOUNTING POLICIES (CONT’D)
|
|
(z)
Standards and amendments to published standards that are not yet effective
but relevant to the Company and its subsidiaries
(cont’d)
|
|
·
|
IFRS
5 (Amendment), ‘Non-current assets held for sale and discontinued
operations’ (effective from July 1, 2009). The amendment clarifies that
all assets and liabilities of a subsidiary are classified as held for sale
if a partial disposal sale plan results in loss of control, and relevant
disclosure should be made for this subsidiary if the definition of a
discontinued operation is met. The Company and its subsidiaries will apply
the IFRS 5 (Amendment) prospectively to all partial disposals of
subsidiaries from January 1, 2010.
|
· |
There
are a number of minor amendments to IFRS 7, ‘Financial instruments:
disclosures’, IAS 8, ‘Accounting policies, changes in accounting estimates
and errors’, IAS 10, ‘Events after the balance sheet date’, IAS 16,
’Property, plant and equipment’, IAS 18, ‘Revenue’, IAS 20, ‘Accounting
for government grants and disclosure of government assistance’ , IAS 23,
‘Borrowing costs’ and IAS 34, ‘Interim financial reporting’ which are not
addressed above. These amendments are unlikely to have a material impact
on financial statements of the Company and its
subsidiaries.
|
|
(a)
|
Financial
risk management (cont’d)
|
3. | FINANCIAL, CAPITAL AND INSURANCE RISKS MANAGEMENT (CONT’D) |
|
(b)
Fair value estimation
|
The fair value of financial instruments traded in active markets (such as available-for-sale) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Company and its subsidiaries is the current bid price. | |
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Company and its subsidiaries use a variety of methods and make assumptions that are based on market conditions existing at each balance sheet date. Valuation techniques includes making reference to the prices used by knowledgeable and willing parties in a recent transaction, the current fair value of other financial assets that are same in substance, discounted cash flow method and option pricing model, etc., are used to determine fair value for available-for-sale, forward exchange contracts, fuel oil swaps, long-term loans and long-term bonds. | |
The carrying value less provision for doubtful accounts of accounts receivable, other receivables and assets, accounts payable, other liabilities, short-term bonds and short-term loans are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company and its subsidiaries for similar financial instruments. | |
The estimated fair value of long-term loans including current maturities and long-term bonds was approximately RMB 65.49 billion and approximately RMB 11.31 billion as of December 31, 2008 (2007: RMB37.22 billion and RMB5.89 billion) respectively. The aggregate book value of these liabilities was approximately RMB65.57 billion and RMB9.83 billion as of December 31, 2008 (2007: RMB37.66 billion and RMB5.89 billion) respectively. | |
(c) Capital risk management | |
The objectives of the Company and its subsidiaries when managing capital are to safeguard the ability of the Company and its subsidiaries in continuing as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. | |
The Company and its subsidiaries monitor capital by using debt ratio analysis. This ratio is calculated as total liabilities (sum of current liabilities and non-current liabilities) divided by total assets as shown in consolidated balance sheet. During 2008, the strategy of the Company and its subsidiaries remained unchanged from 2007. The debt ratio of the Company and its subsidiaries as of December 31, 2008 was 74.35% (2007: 58.10%). The significant change of the debt ratio was primarily attributable to the increase of the loans for the acquisition and construction of power plants. Taking into consideration of the expected operating cash flow of the Company and its subsidiaries and the available banking facilities and their experience in refinancing short-term debts, the management believes the Company and its subsidiaries can meet their current obligations when they fall due. |
3. | FINANCIAL, CAPITAL AND INSURANCE RISKS MANAGEMENT (CONT’D) |
|
(d)
Insurance risk management
|
The Company and its subsidiaries issue contracts that transfer significant insurance risk. | |
The risk relates to the financial guarantees provided to banks by the Company on the borrowings of an associate. The risk under any one financial guarantee contract is the possibility that the insured event (default of a specified debtor) occurs and the uncertainty of the amount of the resulting claims. By the nature of a financial guarantee contract, this risk is predictable. | |
Experience shows credit risks from the specified debtors are relatively remote. The Company maintains a close watch on the financial position and liquidity of the associate for which financial guarantees have been granted in order to mitigate such risks (Note 2(w) (ii)). The Company takes all reasonable steps to ensure that they have appropriate information regarding any claim exposures. | |
4. | CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS |
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. | |
The Company and its subsidiaries make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. | |
(a) Accounting estimates on impairment of goodwill and power generation licence | |
The Company and its subsidiaries perform test annually whether goodwill and power generation licence have suffered any impairment in accordance with the accounting policies stated in Notes 2(g) and 2(f). The recoverable amounts of CGUs have been determined based on value-in-use calculations. These calculations require the use of estimates (Notes 17 and 16). It is reasonably possible, based on existing knowledge, that outcomes within the next financial period that are different from assumptions could require a material adjustment to the carrying amount of goodwill and power generation licence. | |
Changes of assumptions in tariff and fuel price will affect the result of goodwill impairment assessment. As of December 31, 2008, if tariff had decreased by 1% or 5% from management’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against goodwill by approximately RMB85 million and RMB1,024 million, respectively. If fuel price had increased by 1% or 5% from the management’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against goodwill by approximately RMB41 million and RMB229 million, respectively. |
For
the year ended December 31,
|
|||||||||||||
2008
|
2007
|
2006
|
|||||||||||
Interest expense on bank loans:
|
|||||||||||||
-wholly
repayable within five years
|
3,200,296 | 1,854,879 | 1,327,990 | ||||||||||
-not
wholly repayable within five years
|
976,670 | 567,464 | 833,739 | ||||||||||
Interest expense on long-term loans from Huaneng Group:
|
|||||||||||||
-wholly
repayable within five years
|
38,768 | - | - | ||||||||||
-not
wholly repayable within five years
|
99,435 | 137,942 | 140,194 | ||||||||||
Interest expense on other long-term loans:
|
|||||||||||||
-wholly
repayable within five years
|
4,584 | 14,945 | 40,483 | ||||||||||
-not
wholly repayable within five years
|
1,078 | - | - | ||||||||||
Interest expense on long-term bonds
|
499,115 | 7,030 | - | ||||||||||
Interest expense on short-term bonds
|
242,720 | 163,951 | 140,275 | ||||||||||
Total interest expense
|
5,062,666 | 2,746,211 | 2,482,681 | ||||||||||
Less: amounts capitalized in property, plant and equipment
|
(997,887 | ) | (614,089 | ) | (891,648 | ) | |||||||
4,064,779 | 2,132,122 | 1,591,033 | |||||||||||
Loss
/ (Gain) on fair value change of derivative financial
instruments
|
54,658 | (87,132 | ) | (100,180 | ) | ||||||||
Excess of acquirer’s interest in the net fair value of acquiree’s
identifiable assets, liabilities and contingent liabilities over
cost
|
- | - | (24,758 | ) | |||||||||
Gain on deemed disposal of Sichuan Hydropower
|
- | (17,864 | ) | - | |||||||||
Auditors’ remuneration
|
30,555 | 34,688 | 48,315 | ||||||||||
Loss / (Gain) on disposals or write-off of property, plant and
equipment,
|
54,056 | (238,037 | ) | 100,018 | |||||||||
Operating leases:
|
|||||||||||||
-Property,
plant and equipment
|
32,894 | 34,366 | 33,724 | ||||||||||
-Land
use rights
|
39,318 | 40,819 | 41,090 | ||||||||||
Depreciation of property, plant and equipment
|
7,752,706 | 7,229,108 | 6,721,684 | ||||||||||
Impairment loss of property, plant and equipment
|
- | 7,044 | 11,920 | ||||||||||
Impairment of goodwill
|
130,224 | - | - | ||||||||||
Amortization of land use rights
|
74,800 | 46,447 | 42,484 | ||||||||||
Amortization of other non-current assets
|
44,478 | 17,813 | 15,719 | ||||||||||
Cost of inventories consumed
|
50,476,167 | 28,330,667 | 23,034,903 | ||||||||||
Provision for / (Reversal of) doubtful accounts
|
10,951 | (1,466 | ) | (4,853 | ) | ||||||||
Bad debts recovery
|
(50,096 | ) | (5,318 | ) | (35,035 | ) | |||||||
Provision for / (Reversal of) inventory obsolescence
|
3,901 | (6,615 | ) | 1,808 | |||||||||
Other operating expenses consist of environmental protection expenses, substituted power arrangement expenses, insurance and other miscellaneous expenses, etc. |
Names
of related parties
|
Nature
of relationship
|
||
Huaneng Group
|
Ultimate parent company
|
||
HIPDC
|
Parent company
|
||
Xi’an Thermal Power Research Institute Co., Ltd. (“Xi’an Thermal”) and its
subsidiaries
|
Subsidiaries of Huaneng Group
|
||
Huaneng Energy & Communications Holdings Co., Ltd. (“HEC”) and its
subsidiaries
|
Subsidiaries of Huaneng Group
|
||
Qufushengcheng Heat-Power Company Ltd. (“Qufushengcheng Heat-Power
Company”)
|
A subsidiary of Huaneng Group
|
||
Huaneng Hulunbeier Energy Development Company Ltd. (“Hulunbeier
Energy”)*
|
A subsidiary of Huaneng Group
|
||
Shandong Rizhao Power Company Ltd. (“Rizhao Power
Company”)
|
An associate of the Company
|
||
China Huaneng Finance Co., Ltd. (“Huaneng Finance”)
|
An associate of the Company
|
||
Chongqing Huaneng Lime Company Limited (“Lime Company”)
|
An
associate of a subsidiary
|
||
State-owned enterprises**
|
Related parties of the Company
|
||
*
|
Zhalainuoer
Coal Mining Company Ltd. (“Zhalainuoer Coal”) is a subsidiary of
Hulunbeier Energy which the latter entity controls the coal transactions
with the Company and its subsidiaries. Hence, the disclosures of related
party are changed from Zhalainuoer Coal to Hulunbeier Energy.
|
|
**
|
Huaneng
Group is a state-owned enterprise. In accordance with the revised IAS 24,
“Related Party Disclosures”, state-owned enterprises and their
subsidiaries, other than entities under Huaneng Group, directly or
indirectly controlled by the PRC government are also considered as related
parties of the Company and its subsidiaries.
|
|
The
majority of the business activities of the Company and its subsidiaries
are conducted with state-owned enterprises. For the purpose of the related
party balances and transactions disclosure, the Company and its
subsidiaries have established procedures to determine, to the extent
possible, the identification of the ownership structure of its customers
and suppliers as to whether they are state-owned enterprises. However,
many state-owned enterprises have a multi-layered corporate structure and
the ownership structures change over time as a result of transfers and
privatization programs. Nevertheless, management believes that all
material related party balances and transactions have been adequately
disclosed.
|
||
In
addition to the related party information shown elsewhere in the financial
statements, the following is a summary of significant related party
transactions entered into in the ordinary course of business between the
Company and its subsidiaries and their related parties during the year and
significant balances arising from related party transactions as of year
end.
|
|
(i)
|
Cash
deposits in a related party
|
As
of December 31,
|
||||
2008
|
2007
|
|||
Deposits
in Huaneng Finance
|
||||
-
Savings deposit
|
3,539,564
|
4,942,264
|
For the year ended December 31, 2008, the annual interest rate for these saving deposits placed with Huaneng Finance ranged from 0.36% to 1.44% (2007 and 2006: 0.72% to 1.53% and 0.72% to 1.62%) per annum. | ||
(ii) | As described in Note 26, certain loans of the Company and its subsidiaries were borrowed from Huaneng Group. | |
(iii) | As described in Notes 26 and 32, certain loans of the Company and its subsidiaries were borrowed from Huaneng Finance. | |
|
(iv) |
As
of December 31, 2008 and 2007, balances with Huaneng Group, HIPDC,
subsidiaries, and associates are unsecured, non-interest bearing and
receivable/repayable within one year. As of and for the years ended
December 31, 2008, 2007 and 2006, no provision is made on receivable
balances from these parties.
|
(v) | As of December 31, 2008 and 2007, balances with other related parties are unsecured, non-interest bearings and receivable / repayable within one year other than prepayments for equipment of approximately RMB156 million (2007: nil) which are presented in non-current assets. As of and for the years ended December 31, 2008, 2007 and 2006, no provision is made on receivable balances from these other related parties. | |
(vi) | Included in the balance sheets, the balances with state-owned enterprises are as follows: |
As
of December 31,
|
|||||
2008
|
2007
|
||||
RMB
million
|
RMB
million
|
||||
Receivables
and other assets, net
|
7,137
|
8,465
|
|||
Cash
at banks
|
631
|
2,335
|
|||
Borrowings
|
74,410
|
37,787
|
|||
Accounts
payable and other liabilities
|
4,032
|
4,346
|
As of December 31, 2008, accounts receivable of approximately RMB505 million was secured to a bank as collateral against a short-term loan of RMB500 million (2007: nil). Except for cash at banks, borrowings and accounts receivable mentioned above, all the balances of assets and liabilities with state-owned enterprises mentioned above are unsecured, non-interest bearing and receivable/repayable within one year. As of December 31, 2008, no provision (2007: RMB51 million) has been made on receivable balances. | ||
Terms of the long-term loans, short-term loans and cash at banks are described in Notes 26, 32 and 37, which have no material difference with the terms with third parties. |
|
(b)
Related party transactions
|
|
(i)
|
Pursuant
to a leasing agreement entered into between the Company and HIPDC, HIPDC
leased the land use right to Nanjing Power Plant for 50 years from January
1, 1999 at an annual rental payment of RMB1.334 million. For the year
ended December 31, 2008, total rental fees of
the land use right were RMB1.334 million (2007 and 2006: RMB1.334
million).
|
(ii) | Pursuant to a leasing agreement between the Company and HIPDC, HIPDC leases its office building to the Company from January 1, 2005 for 5 years at an annual rental of RMB26 million. For the year ended December 31, 2008, the rental expense of office building was RMB26 million (2007 and 2006: RMB26 million). | |
(iii) | Please refer to Note 26 for details of long-term loans on-lent from Huaneng Group through Huaneng Finance to the Company and its subsidiaries. For the year ended December 31, 2008, total long-term loan interest incurred by the Company and its subsidiaries to Huaneng Group amounted to RMB139.25 million (2007 and 2006: RMB137.94 million and RMB 139.95 million). | |
(iv) | For the year ended December 31, 2008, drawdown of short-term loans from Huaneng Finance to the Company and its subsidiaries amounted to RMB1,590 million (2007 and 2006: RMB2,248 million and RMB 3,375 million). Drawdown of long-term loans from Huaneng Finance amounted to RMB130 million (2007 and 2006: nil and RMB40 million). The interest rates for such loans have no material difference from the prevailing average market interest rates. For the year ended December 31, 2008, total short-term loan interest incurred by the Company and its subsidiaries to Huaneng Finance amounted to RMB115.18 million (2007 and 2006: RMB138.29 million and RMB128.41 million) while long-term loan interest incurred by the Company and its subsidiaries to Huaneng Finance amounted to RMB0.5 million (2007 and 2006: nil and RMB4.2 million). | |
(v) | On November 6, 2007 and August 8, 2007, the Company entered into management service agreements with Huaneng Group and HIPDC, respectively. Pursuant to the management service agreements, the Company provides management services to certain power plants owned by Huaneng Group and HIPDC for 3 years. For the year ended December 31, 2008, the total service fees earned from Huaneng Group and HIPDC amounted to RMB39.16 million (2007 and 2006: RMB41.79 million and RMB39.10 million) and RMB14.08 million (2007 and 2006: RMB3.98 million and RMB4.38 million), respectively. For the year ended December 31, 2008, the related costs incurred for the management services rendered amounted to approximately RMB33.52 million (2007and 2006: RMB33.15 million and RMB33.04million). | |
(vi) | For the year ended December 31, 2008, coal sold by the Company and its subsidiaries to HEC and its subsidiaries amounted to RMB13.92 million (2007 and 2006: nil)*. | |
(vii) | For the year ended December 31, 2008, coal purchased by the Company and its subsidiaries from Rizhao Power Company amounted to RMB8.30 million (2007 and 2006: nil)*. | |
(viii) | For the year ended December 31, 2008, coal and transportation services provided by HEC and its subsidiaries to the Company and its subsidiaries amounted to RMB4,198 million (2007 and 2006: RMB2,907 million and RMB735 million)*. | |
(ix) | For the year ended December 31, 2008, coal purchased by the Company and its subsidiaries from Hulunbeier Energy amounted to RMB167.15 million (2007 and 2006: RMB8.56 million and nil)*. | |
|
(b)
Related party transactions
(cont’d)
|
(x) | For the year ended December 31, 2008, equipment purchased by the Company and its subsidiaries from HEC and its subsidiaries amounted to approximately RMB458.02 million (2007 and 2006: RMB247.76 million and nil)*. | |
|
(xi)
|
For
the year ended December 31, 2008, lime products purchased by the Company
and its subsidiaries from Lime Company amounted to approximately RMB73.19
million (2007 and 2006: RMB63.51 million and RMB
47.24million)*.
|
|
(xii)
|
For
the year ended December 31, 2008, information and technology supporting
services rendered by Xi’an Thermal and its subsidiaries to the Company and
its subsidiaries amounted to approximately RMB217 million (2007 and 2006:
RMB139 million and RMB95 million)*.
|
|
(xiii)
|
The
Company and its subsidiaries generated power on behalf of China Huaneng
(Group) Baiyanghe Power Plant (“Baiyanghe Power Plant”), a branch of
Huaneng Group and Qufushengcheng Heat-Power Company. The transacting
parties changed their settlement method from direct settlement with these
related parties by the Company and its subsidiaries in 2007 to payments
made to these related parties after receiving settlements from power grid
company in 2008. For the year ended December 31, 2008, the Company and its
subsidiaries incurred cost of RMB15.16 million for the arrangement above
with Baiyanghe Power Plant (2007 and 2006: revenue generated by the
Company and its subsidiaries from Baiyanghe Power Plant amounted to
RMB6.24 million and nil) while no such arrangement with Qufushengcheng
Heat-Power Company this year (2007 and 2006: revenue from Qufushengcheng
Heat-Power Company amounted to RMB23.06 million and
nil)*.
|
|
(xiv)
|
On
March 10, 2008, SinoSing Power was incorporated as an oversea vehicle of
Huaneng Group and on March 24, 2008, acquired 100% equity interest of Tuas
Power from Temasek Holdings (Private) Limited (“Temasek”) in Singapore. On
April 29, 2008, the Company entered into a transfer agreement with Huaneng
Group, pursuant to which the Company agreed to acquire from Huaneng Group
100% equity interest in SinoSing Power. The consideration paid comprises
the whole costs incurred by Huaneng Group, including (1) approximately
US$985 million being the capital injected into SinoSing Power by Huaneng
Group and (2) an aggregate amount of approximately RMB176 million being
all the related expenses (including loan interest) directly incurred in
connection with the acquisition of 100% equity interest of Tuas Power,
with total amounted to RMB7.08 billion, please refer to Note 40 for
details.
|
|
*
The amounts of related party transactions above have excluded
VAT.
|
|
Transactions with
state-owned enterprises
|
For
the year ended December 31,
|
|||||||||||||
2008
|
2007
|
2006
|
|||||||||||
RMB
million
|
RMB
million
|
RMB
million
|
|||||||||||
Sales of electricity
|
57,124 | 49,628 | 44,646 | ||||||||||
Purchases of fuel
|
(26,323 | ) | (17,888 | ) | (12,499 | ) | |||||||
Acquisition of property, plant and equipment
|
(11,981 | ) | (5,331 | ) | (7,568 | ) | |||||||
Subcontracting labor for construction and
renovation
|
(3,217 | ) | (2,092 | ) | (3,621 | ) | |||||||
Drawdown of short-term loans
|
43,706 | 18,299 | 9,033 | ||||||||||
Drawdown of long-term bank loans
|
35,764 | 8,136 | 9,453 | ||||||||||
Interest expense of loans and bonds to banks and other financial
institutions
|
(3,553 | ) | (1,905 | ) | (1,797 | ) | |||||||
(c) Guarantees |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
(i) Short-term
loan guaranteed by state-owned banks
|
- | 1,000,000 | |||||||
(ii) Long-term
loans guaranteed by
|
|||||||||
- Huaneng Group
|
1,100,117 | 1,462,140 | |||||||
- HIPDC
|
1,463,511 | 2,041,783 | |||||||
- State-owned enterprises
|
3,100,000 | 100,000 | |||||||
(iii) Certain long-term bank loans of Rizhao Power Company
guaranteed by the Company
|
(43,563 | ) | (86,063 | ) | |||||
(iv) Long-term bonds guaranteed by
|
|||||||||
-
HIPDC
|
4,000,000 | - | |||||||
-
State-owned banks
|
6,000,000 | 6,000,000 | |||||||
(d) Pre-tax benefits and social insurance of key management personnel |
For
the year ended December 31,
|
|||||||||||||
2008
|
2007
|
2006
|
|||||||||||
Salaries
|
7,121 | 6,930 | 5,670 | ||||||||||
Pension
|
1,539 | 1,529 | 1,616 | ||||||||||
Total
|
8,660 | 8,459 | 7,286 |
Fees
|
Basic
salaries
|
Performance
salaries
|
Pension
|
Total
|
|||||||||||||||||
Name
of director
|
|||||||||||||||||||||
Mr.
Cao Peixi1
|
- | - | - | - | - | ||||||||||||||||
Mr.
Huang Long
|
- | - | - | - | - | ||||||||||||||||
Mr.
Wu Dawei
|
- | 83 | 319 | 90 | 492 | ||||||||||||||||
Mr.
Huang Jian1
|
- | - | - | - | - | ||||||||||||||||
Mr.
Liu Guoyue2,6
|
- | 112 | 538 | 114 | 764 | ||||||||||||||||
Mr.
Fan Xiaxia2,7
|
- | 112 | 538 | 113 | 763 | ||||||||||||||||
Mr.
Shan Qunying
|
48 | - | - | - | 48 | ||||||||||||||||
Mr.
Xu Zujian
|
48 | - | - | - | 48 | ||||||||||||||||
Ms.
Huang Mingyuan2
|
24 | - | - | - | 24 | ||||||||||||||||
Mr.
Liu Shuyuan
|
48 | - | - | - | 48 | ||||||||||||||||
Mr.
Liu Jipeng
|
74 | - | - | - | 74 | ||||||||||||||||
Mr.
Yu Ning
|
74 | - | - | - | 74 | ||||||||||||||||
Mr.
Shao Shiwei2
|
37 | - | - | - | 37 | ||||||||||||||||
Mr.
Zheng Jianchao2
|
37 | - | - | - | 37 | ||||||||||||||||
Mr.
Wu Liansheng2
|
37 | - | - | - | 37 | ||||||||||||||||
Mr.
Li Xiaopeng3
|
- | - | - | - | - | ||||||||||||||||
Mr.
Huang Yongda4
|
- | - | - | - | - | ||||||||||||||||
Mr.
Na Xizhi5
|
- | 86 | 12 | 64 | 162 | ||||||||||||||||
Mr.
Ding Shida
5
|
24 | - | - | - | 24 | ||||||||||||||||
Mr.
Qian Zhongwei5
|
37 | - | - | - | 37 | ||||||||||||||||
Mr.
Xia Donglin5
|
37 | - | - | - | 37 | ||||||||||||||||
Mr.
Wu Yusheng5
|
37 | - | - | - | 37 | ||||||||||||||||
Sub-total
|
562 | 393 | 1,407 | 381 | 2,743 | ||||||||||||||||
Name
of supervisor
|
|||||||||||||||||||||
Mr.
Guo Junming
|
- | - | - | - | - | ||||||||||||||||
Ms.
Yu Ying
|
48 | - | - | - | 48 | ||||||||||||||||
Ms.
Wu Lihua2
|
- | - | - | - | - | ||||||||||||||||
Mr.
Gu Jianguo
|
48 | - | - | - | 48 | ||||||||||||||||
Mr.
Wang Zhaobin2
|
- | 135 | 490 | 140 | 765 | ||||||||||||||||
Mr.
Dai Xinmin2
|
- | 92 | 255 | 78 | 425 | ||||||||||||||||
Mr.
Shen Zongmin5
|
24 | - | - | - | 24 | ||||||||||||||||
Ms.
Zou Cui5
|
- | 43 | 139 | 51 | 233 | ||||||||||||||||
Sub-total
|
120 | 270 | 884 | 269 | 1,543 | ||||||||||||||||
Total
|
682 | 663 | 2,291 | 650 | 4,286 |
|
(a)
Pre-tax benefits and social insurance of directors and supervisors
(cont’d)
|
Fees
|
Basic
salaries
|
Performance
salaries
|
Pension
|
Total
|
|||||||||||||||||
Name
of director
|
|||||||||||||||||||||
Mr.
Li Xiaopeng3
|
- | - | - | - | - | ||||||||||||||||
Mr.
Huang Yongda4
|
- | - | - | - | - | ||||||||||||||||
Mr.
Huang Long
|
- | - | - | - | - | ||||||||||||||||
Mr.
Na Xizhi5
|
- | 222 | 627 | 197 | 1,046 | ||||||||||||||||
Mr.
Wu Dawei
|
- | 124 | 544 | 123 | 791 | ||||||||||||||||
Mr.
Shan Qunying
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Ding Shida5
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Xu Zujian
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Liu Shuyuan
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Qian Zhongwei5
|
60 | - | - | - | 60 | ||||||||||||||||
Mr.
Xia Donglin5
|
60 | - | - | - | 60 | ||||||||||||||||
Mr.
Liu Jipeng
|
60 | - | - | - | 60 | ||||||||||||||||
Mr.
Wu Yusheng5
|
60 | - | - | - | 60 | ||||||||||||||||
Mr.
Yu Ning
|
60 | - | - | - | 60 | ||||||||||||||||
Sub-total
|
460 | 346 | 1,171 | 320 | 2,297 | ||||||||||||||||
Name
of supervisor
|
|||||||||||||||||||||
Mr.
Guo Junming
|
- | - | - | - | - | ||||||||||||||||
Ms.
Yu Ying
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Gu Jianguo
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Shen Zongmin5
|
40 | - | - | - | 40 | ||||||||||||||||
Ms.
Zou Cui5
|
- | 126 | 458 | 138 | 722 | ||||||||||||||||
Mr.
Wang Zhaobin
|
- | 125 | 457 | 134 | 716 | ||||||||||||||||
Sub-total
|
120 | 251 | 915 | 272 | 1,558 | ||||||||||||||||
Total
|
580 | 597 | 2,086 | 592 | 3,855 |
(a)
|
Pre-tax
benefits and social insurance of directors and supervisors
(cont’d)
|
The remuneration of every director and supervisor of the Company for the year ended December 31, 2006 is set out below: |
Fees
|
Basic
salaries and allowances
|
Discretionary
bonuses
|
Employer’s
contributions to pension schemes
|
Total
|
|||||||||||||||||
Name
of director
|
|||||||||||||||||||||
Mr.
Li Xiaopeng
|
- | - | - | - | - | ||||||||||||||||
Mr.
Huang Yongda
|
- | - | - | - | - | ||||||||||||||||
Mr.
Wang Xiaosong8
|
- | - | - | - | - | ||||||||||||||||
Mr.
Huang Long
|
- | 150 | 350 | 166 | 666 | ||||||||||||||||
Mr.
Na Xizhi
|
- | 225 | 310 | 173 | 708 | ||||||||||||||||
Mr.
Wu Dawei
|
- | 21 | 121 | 21 | 163 | ||||||||||||||||
Mr.
Shan Qunying
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Ding Shida
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Xu Zujian
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Liu Shuyuan
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Qian Zhongwei
|
60 | - | - | - | 60 | ||||||||||||||||
Mr.
Xia Donglin
|
60 | - | - | - | 60 | ||||||||||||||||
Mr.
Liu Jipeng
|
60 | - | - | - | 60 | ||||||||||||||||
Mr.
Wu Yusheng
|
60 | - | - | - | 60 | ||||||||||||||||
Mr.
Yu Ning
|
60 | - | - | - | 60 | ||||||||||||||||
Sub-total
|
460 | 396 | 781 | 360 | 1,997 | ||||||||||||||||
Name
of supervisor
|
|||||||||||||||||||||
Mr.
Guo Junming9
|
- | - | - | - | - | ||||||||||||||||
Ms.
Yu Ying
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Gu Jianguo
|
40 | - | - | - | 40 | ||||||||||||||||
Mr.
Shen Zongmin
|
40 | - | - | - | 40 | ||||||||||||||||
Ms.
Zou Cui
|
- | 128 | 398 | 152 | 678 | ||||||||||||||||
Mr.
Wang Zhaobin
|
- | 126 | 382 | 139 | 647 | ||||||||||||||||
Sub-total
|
120 | 254 | 780 | 291 | 1,445 | ||||||||||||||||
Total
|
580 | 650 | 1,561 | 651 | 3,442 |
1
|
Appointed
on August 27, 2008.
|
2
|
Appointed
on May 13, 2008.
|
3
|
Mr.
Li Xiaopeng resigned from the
capacity of chairman and director on June 2, 2008.
|
4
|
Mr.
Huang Yongda resigned from the
capacity of vice chairman and director on August 27,
2008.
|
5
|
Retired
on May 13, 2008.
|
6
|
Excluded
from basic salaries, performance salaries and pension received before
appointed as the director amounting to RMB0.045 million, RMB0.184 million
and RMB0.062 million, respectively.
|
7
|
Excluded
from basic salaries, performance salaries and pension received before
appointed as the director amounting to RMB0.045 million, RMB0.184 million
and RMB0.062 million, respectively.
|
8
|
Mr.
Wang Xiaosong resigned from the capacity of director on March 7,
2006.
|
9
|
Appointed
on January 18, 2006.
|
For
the year ended December 31,
|
|||||||||||||
2008
|
2007
|
2006
|
|||||||||||
Basic
salaries
|
292 | 536 | 551 | ||||||||||
Performance
salaries
|
1,091 | 2,406 | 1,776 | ||||||||||
Pension
|
330 | 657 | 702 | ||||||||||
1,713 | 3,599 | 3,029 |
Geographical
segments
|
PRC
|
Singapore
|
Total
|
||||||||||
Segment
revenue
|
57,203,465 | 10,360,350 | 67,563,815 | ||||||||||
Segment
expenses
|
(58,654,830 | ) | (9,840,015 | ) | (68,494,845 | ) | |||||||
Segment
results
|
(1,451,365 | ) | 520,335 | (931,030 | ) | ||||||||
Unallocated
expenses
|
(324,919 | ) | |||||||||||
Operating
loss
|
(1,255,949 | ) | |||||||||||
Interest
income
|
83,522 | ||||||||||||
Interest
expense
|
(4,064,779 | ) | |||||||||||
Exchange
gain and bank charges, net
|
356,836 | ||||||||||||
Share
of profits of associates
|
72,688 | - | 72,688 | ||||||||||
Loss
on fair value change
|
(54,658 | ) | |||||||||||
Investment
income
|
51,061 | ||||||||||||
Other
income, net
|
19,723 | ||||||||||||
Loss
before income tax expense
|
(4,791,556 | ) | |||||||||||
Income
tax benefit
|
239,723 | ||||||||||||
Loss
for the year
|
(4,551,833 | ) | |||||||||||
Other
assets
|
131,243,943 | 23,824,750 | 155,068,693 | ||||||||||
Investments
in associates
|
8,758,235 | - | 8,758,235 | ||||||||||
Add:
unallocated assets
|
2,090,830 | ||||||||||||
Total
assets
|
165,917,758 | ||||||||||||
Segment
liabilities
|
10,416,317 | 1,812,038 | 12,228,355 | ||||||||||
Add:
unallocated liabilities
|
111,129,450 | ||||||||||||
Total
liabilities
|
123,357,805 | ||||||||||||
Depreciation
and amortization
|
7,434,858 | 392,378 | 7,827,236 | ||||||||||
Add: depreciation and amortization of unallocated assets
|
17,095 | ||||||||||||
Total depreciation and amortization included in profit and
loss
|
7,844,331 | ||||||||||||
Provision
for inventory obsolescence
|
235 | 3,666 | 3,901 | ||||||||||
(Reversal of) / Provision for doubtful accounts on
receivables
|
(15,345 | ) | 26,296 | 10,951 | |||||||||
Impairment
of goodwill
|
130,224 | - | 130,224 | ||||||||||
Segment
addition of capital assets
|
28,667,051 | 22,387,050 | 51,054,101 | ||||||||||
Add: unallocated addition of capital assets
|
11,518 | ||||||||||||
Total
additions of capital assets
|
51,065,619 |
Dam
|
Port
facilities
|
Buildings
|
Electric
utility plant in service
|
Transportation
facilities
|
Others
|
Construction-in-progress
|
Total
|
|||||||||||||||||||||||||
As of January 1, 2007
|
||||||||||||||||||||||||||||||||
Cost
|
3,553,170 | - | 2,053,942 | 106,111,993 | 224,007 | 2,386,701 | 12,498,547 | 126,828,360 | ||||||||||||||||||||||||
Accumulated depreciation
|
(169,745 | ) | - | (492,405 | ) | (34,363,986 | ) | (100,098 | ) | (1,215,901 | ) | - | (36,342,135 | ) | ||||||||||||||||||
Accumulated impairment loss
|
- | - | - | (42,000 | ) | - | - | - | (42,000 | ) | ||||||||||||||||||||||
Net book value
|
3,383,425 | - | 1,561,537 | 71,706,007 | 123,909 | 1,170,800 | 12,498,547 | 90,444,225 | ||||||||||||||||||||||||
Year ended December 31, 2007
|
||||||||||||||||||||||||||||||||
Beginning of the year
|
3,383,425 | - | 1,561,537 | 71,706,007 | 123,909 | 1,170,800 | 12,498,547 | 90,444,225 | ||||||||||||||||||||||||
Reclassification
|
- | - | 131,973 | (188,275 | ) | (19,800 | ) | 76,102 | - | - | ||||||||||||||||||||||
Acquisition
|
- | - | 98,889 | 1,816,102 | - | 23,165 | 635,171 | 2,573,327 | ||||||||||||||||||||||||
Additions
|
- | - | 16,395 | 30,494 | - | 105,875 | 15,386,036 | 15,538,800 | ||||||||||||||||||||||||
Transfer from CIP
|
- | - | 314,883 | 13,070,043 | 5,565 | 211,436 | (13,601,927 | ) | - | |||||||||||||||||||||||
Disposals / Write-off
|
- | - | (6,613 | ) | (243,984 | ) | - | (14,759 | ) | - | (265,356 | ) | ||||||||||||||||||||
Depreciation charge
|
- | - | (98,590 | ) | (6,896,759 | ) | (15,409 | ) | (233,825 | ) | - | (7,244,583 | ) | |||||||||||||||||||
Impairment charge
|
- | - | - | (7,044 | ) | - | - | - | (7,044 | ) | ||||||||||||||||||||||
Deemed disposal of a subsidiary (Note 12)
|
(3,383,425 | ) | - | (354,363 | ) | (4,909,687 | ) | - | (201,361 | ) | (2,064,614 | ) | (10,913,450 | ) | ||||||||||||||||||
End
of the year
|
- | - | 1,664,111 | 74,376,897 | 94,265 | 1,137,433 | 12,853,213 | 90,125,919 | ||||||||||||||||||||||||
As of December 31, 2007
|
||||||||||||||||||||||||||||||||
Cost
|
- | - | 2,234,479 | 114,342,118 | 206,956 | 2,452,285 | 12,853,213 | 132,089,051 | ||||||||||||||||||||||||
Accumulated depreciation
|
- | - | (570,368 | ) | (39,965,221 | ) | (112,691 | ) | (1,314,852 | ) | - | (41,963,132 | ) | |||||||||||||||||||
Net book value
|
- | - | 1,664,111 | 74,376,897 | 94,265 | 1,137,433 | 12,853,213 | 90,125,919 | ||||||||||||||||||||||||
Year ended December 31, 2008
|
||||||||||||||||||||||||||||||||
Beginning of the year
|
- | - | 1,664,111 | 74,376,897 | 94,265 | 1,137,433 | 12,853,213 | 90,125,919 | ||||||||||||||||||||||||
Reclassification
|
- | - | (11,526 | ) | (32,261 | ) | - | 43,787 | - | - | ||||||||||||||||||||||
Acquisitions
|
- | - | - | 5,983,679 | - | 12,460 | 80,441 | 6,076,580 | ||||||||||||||||||||||||
Additions
|
- | 1,315,393 | 29,211 | 185,228 | - | 201,613 | 27,029,948 | 28,761,393 | ||||||||||||||||||||||||
Transfer from CIP
|
- | - | 41,538 | 14,919,194 | - | 112,805 | (15,073,537 | ) | - | |||||||||||||||||||||||
Disposals / Write-off
|
- | - | (4,099 | ) | (72,385 | ) | - | (2,375 | ) | - | (78,859 | ) | ||||||||||||||||||||
Depreciation charge
|
- | - | (96,468 | ) | (7,413,970 | ) | (12,385 | ) | (239,293 | ) | - | (7,762,116 | ) | |||||||||||||||||||
Currency
translation differences
|
- | - | - | (377,920 | ) | - | (823 | ) | (6,976 | ) | (385,719 | ) | ||||||||||||||||||||
End
of the year
|
- | 1,315,393 | 1,622,767 | 87,568,462 | 81,880 | 1,265,607 | 24,883,089 | 116,737,198 | ||||||||||||||||||||||||
As of December 31, 2008
|
|
|||||||||||||||||||||||||||||||
Cost
|
- | 1,315,393 | 2,276,367 | 141,065,871 | 206,956 | 2,749,454 | 24,883,089 | 172,497,130 | ||||||||||||||||||||||||
Accumulated depreciation
|
- | - | (653,600 | ) | (49,812,854 | ) | (125,076 | ) | (1,483,847 | ) | - | (52,075,377 | ) | |||||||||||||||||||
Accumulated
impairment loss
|
- | - | - | (3,684,555 | ) | - | - | - | (3,684,555 | ) | ||||||||||||||||||||||
Net book value
|
- | 1,315,393 | 1,622,767 | 87,568,462 | 81,880 | 1,265,607 | 24,883,089 | 116,737,198 |
2008
|
2007
|
||||||||
Beginning of the year
|
8,731,490 | 5,418,213 | |||||||
Conversion of Sichuan Hydropower from subsidiary to associate
(a)
|
- | 1,544,206 | |||||||
Additional investments in Huaneng Finance
|
- | 134,000 | |||||||
Acquisition of equity interest in Shenzhen Energy Investment Co., Ltd.
(“SEI”) (b)
|
200 | 1,520,000 | |||||||
Acquisition of 10% equity interest in Rizhao Power Company
|
134,554 | - | |||||||
Establishment of Yangquan Coal Industry Group
Huaneng Coal-fired power Investment Co.,
Ltd. (“Yangmei Huaneng Company”)
|
147,000 | - | |||||||
Share
of other equity movement
|
3,096 | 7,255 | |||||||
Share of profit before income tax expense
|
187,518 | 768,318 | |||||||
Share of income tax expense
|
(114,830 | ) | (181,995 | ) | |||||
Dividends
|
(330,793 | ) | (478,507 | ) | |||||
End of the year
|
8,758,235 | 8,731,490 | |||||||
Investments
in associates as of December 31, 2008 included goodwill of approximately
RMB1,490 million (2007: RMB1,457 million).
|
|||||||||
Notes:
|
(a)
|
In
January 2007, Huaneng Group unilaterally injected capital into Sichuan
Hydropower amounting to RMB615 million, which had therefore reduced the
related equity interest holding of Sichuan Hydropower by the Company from
60% to 49%. From January 2007 onwards, Sichuan Hydropower became an
associate of the Company and was accounted for using equity method in the
consolidated financial statements instead of a full scope of
consolidation.
|
|
(b) | In 2006, Shenzhen Energy Group Co., Ltd. (“SEG”) planned to restructure with its listed subsidiary – SEI. SEI issued new shares to SEG in acquiring most of the assets of SEG and SEG will be deregistered ultimately. In accordance with the resolutions of the board of directors and related signed agreement, the Company subscribed 200 million shares, and will take up a portion of shareholding of SEI from SEG upon the deregistration of the latter entity. The Company will directly hold 25.01% shareholding in SEI by then. As of December 31, 2007, the Company has paid RMB1.52 billion to subscribe 200 million shares, representing 9.08% shareholding of SEI. The Company considered the nature of the investment and classified this as an associate. The 200 million shares mentioned above are subject to a lock-up period of 3 years from the acquisition date. As there is no published price quotation for shares with such specific lock-up arrangement, there is no price information available for the disclosure purpose. |
Name
of associate
|
Country of
incorporation
|
Registered and fully
paid capital
|
Business nature and scope
of
operation
|
Percentage of equity interest held
|
||||||
Direct
|
Indirect
|
|||||||||
Rizhao Power Company
|
PRC
|
RMB1,245,587,900
|
Power
generation
|
44%
|
-
|
|||||
|
|
|||||||||
SEG
|
PRC
|
RMB955,555,556
|
Development, production and sale of regular energy, new energy and energy
construction project, etc.
|
25%
|
-
|
|||||
SEI
|
PRC
|
RMB2,202,495,332
|
Energy and investment in related industries
|
9.08%
|
-
|
|||||
Hebei Hanfeng Power Generation Limited Liability Company
|
PRC
|
RMB1,975,000,000
|
Power
generation
|
40%
|
-
|
|||||
|
|
|||||||||
Lime Company
|
PRC
|
RMB50,000,000
|
Lime
production and sale
|
-
|
25%
|
|||||
Huaneng Finance
|
PRC
|
RMB2,000,000,000
|
Provision
for financial
service
including fund
deposit
services, lending,
finance
lease
arrangements,
notes
discounting
and entrusted
loans
and investment
arrangement
within
Huaneng
Group
|
20%
|
-
|
|||||
Sichuan Hydropower |
PRC
|
RMB800,000,000 |
Development,
investment, construction, operation
and management of
hydropower
|
49%
|
-
|
|||||
Yangmei Huaneng Company |
PRC
|
RMB1,000,000,000 |
Investment,
development, consulting and
management services of coal
and
power generation projects
|
49%
|
-
|
2008
|
2007
|
||||||||
Assets
|
78,806,094 | 82,084,730 | |||||||
Liabilities
|
(51,201,920 | ) | (53,434,823 | ) | |||||
Operating
revenue
|
7,937,524 | 17,339,522 | |||||||
Profit
attributable to equity holders of associates
|
299,872 | 1,992,974 |
Name
of subsidiary
|
Country
of incorporation
|
Type
of legal entity
|
Registered
and fully paid capital
|
Business nature
and
scope
of operations
|
Percentage
of equity
interest
held
|
||||||||
Direct
|
Indirect
|
||||||||||||
Huaneng
Weihai Power Limited Liability Company
|
PRC
|
Limited
liability company
|
RMB761,838,300
|
Power
generation
|
60%
|
-
|
|||||||
Huaneng
Huaiyin Power Generation Co. Ltd. (“Huaiyin Power
Company”)
|
PRC
|
Limited
liability company
|
|
RMB265,000,000
|
Power
generation
|
100%
|
-
|
||||||
Huaneng
Huaiyin II Power Limited Company
|
PRC
|
Limited
liability company
|
RMB774,000,000
|
Power
generation
|
63.64%
|
-
|
|||||||
Huaneng
(Suzhou Industrial Park) Power Generation Co. Ltd.
|
PRC
|
Limited
liability company
|
RMB632,840,000
|
Power
generation
|
75%
|
-
|
|||||||
Huaneng
Taicang Power Co., Ltd.
|
PRC
|
Limited
liability company
|
RMB804,146,700
|
Power
generation
|
75%
|
-
|
|||||||
Huaneng
Qinbei Power Co., Ltd.
|
PRC
|
Limited
liability company
|
RMB810,000,000
|
Power
generation
|
60%
|
-
|
|||||||
Huaneng
Yushe Power Generation Co., Ltd.
|
PRC
|
Limited
liability company
|
RMB615,760,000
|
Power
generation
|
60%
|
-
|
|||||||
Huaneng
Xindian Power Co., Ltd.
|
PRC
|
Limited
liability company
|
RMB100,000,000
|
Power
generation
|
95%
|
-
|
|||||||
Huaneng
Hunan Yueyang Power Generation Limited Liability Company (“Yueyang Power
Company”)
|
PRC
|
Limited
liability company
|
RMB1,055,000,000
|
Power
generation
|
55%
|
-
|
|||||||
Huaneng
Chongqing Luohuang Power Generation Limited Liability
Company
|
PRC
|
Limited
liability company
|
RMB1,658,310,000
|
Power
generation
|
60%
|
-
|
|||||||
|
|||||||||||||
Huaneng
Shanghai Combined Cycle Power Limited Liability Company
|
PRC
|
Limited
liability company
|
RMB699,700,000
|
Power
generation
|
70%
|
-
|
|||||||
Huaneng
Pingliang Power Generation Co., Ltd. (“Pingliang
Power Company”)
|
PRC
|
Limited
liability company
|
RMB924,050,000
|
Power
generation
|
65%
|
-
|
Name
of subsidiary
|
Country
of
incorporation
|
Type
of legal entity
|
Registered
and fully
paid
capital
|
Business
nature and
scope
of operations
|
Percentage
of equity
interest
held
|
||||||||
Direct
|
Indirect
|
||||||||||||
Huaneng
International Power Fuel Limited Liability Company
|
PRC
|
Limited
liability company
|
RMB200,000,000
|
Wholesale
of coal
|
100%
|
-
|
|||||||
|
|||||||||||||
Huaneng
Nanjing Jinling Power Co., Ltd. (“Nanjing Jinling Power
Company”)
|
PRC
|
Limited
liability company
|
RMB1,302,000,000
|
Power
generation
|
60%
|
-
|
|||||||
|
|||||||||||||
Huaneng
Shanghai Shidongkou Power Generation Limited Liability Company
(i)
|
PRC
|
Limited
liability company
|
RMB990,000,000
|
Power
generation
|
50%
|
-
|
|||||||
|
|||||||||||||
Huade
County Daditaihong Wind Power Utilization Limited Liability
Company
|
PRC
|
Limited
liability company
|
RMB5,000,000
|
Wind
power development
and utilization
|
99%
|
-
|
|||||||
|
|||||||||||||
Huaneng
Nantong Power Generation Limited Liability Company
|
PRC
|
Limited
liability company
|
RMB1,560,000,000
|
Power
generation
|
70%
|
-
|
|||||||
Yingkou
Port (i)
|
PRC
|
Limited
liability company
|
RMB720,235,000
|
Loading
and conveying
service
|
50%
|
-
|
|||||||
SinoSing
Power
|
Singapore
|
Limited
liability company
|
US$985,000,100
|
Investment
holding
|
100%
|
-
|
|||||||
|
|||||||||||||
Tuas
Power
|
Singapore
|
Limited
liability company
|
US$1,178,050,000
|
Power
generation and
related products,
derivatives; developing
power supply
resources
and operating
electricity
|
-
|
100%
|
|||||||
Tuas
Power Supply Pte Ltd.
|
Singapore
|
Limited
liability company
|
US$500,000
|
Power
sales
|
-
|
100%
|
|||||||
Tuas
Power Utilities Pte Ltd.
|
Singapore
|
Limited
liability company
|
US$2
|
Provision
of utility
services
|
-
|
100%
|
|||||||
TPGS
Green Energy Pte Ltd.
|
Singapore
|
Limited
liability company
|
US$1,000,000
|
Provision
of utility
services
|
-
|
75%
|
|||||||
New
Earth Pte Ltd.
|
Singapore
|
Limited
liability company
|
US$10,111,841
|
Consultancy
in waste
recycling
|
-
|
60%
|
|||||||
New
Earth Singapore Pte Ltd.
|
Singapore
|
Limited
liability company
|
US$12,516,050
|
Industrial
waste
management and
recycling
|
-
|
75%
|
2008
|
2007
|
||||||||
Beginning
of the year
|
3,462,158 | 1,458,759 | |||||||
Investment
in Jinxing Energy
|
146,375 | 115,599 | |||||||
Additions
due to exercise of stock warrants
|
- | 891,058 | |||||||
Disposals
|
- | (603,411 | ) | ||||||
Revaluation
(loss) / gains
|
(2,084,517 | ) | 1,600,153 | ||||||
End
of the year
|
1,524,016 | 3,462,158 |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
Outside
Hong Kong, held on:
|
|||||||||
Leases
of between 10 to 50 years
|
2,868,599 | 2,242,026 | |||||||
Leases
of over 50 years
|
26,760 | 27,182 | |||||||
2,895,359 | 2,269,208 |
As
of January 1, 2008
|
|||
Cost
|
-
|
||
Movement
in 2008:
|
|||
Opening
net book value
|
-
|
||
Acquisitions
(Note 40)
|
4,073,278
|
||
Currency
translation differences
|
(261,372)
|
||
Closing
net book value
|
3,811,906
|
||
As
of December 31, 2008
|
|||
Cost
|
3,811,906
|
||
As
of December 31, 2006
|
|||
Cost
|
671,796
|
||
Movement
in 2007:
|
|||
Opening
net book value
|
671,796
|
||
Acquisitions
|
13,703
|
||
Deemed
disposal (Note 12(a))
|
(24,287)
|
||
Transfer
to investments in associates(Note 12(a))
|
(105,946)
|
||
Closing
net book value
|
555,266
|
||
As
of December 31, 2007
|
|||
Cost
|
555,266
|
||
Movement
in 2008:
|
|||
Opening
net book value
|
555,266
|
||
Acquisitions
|
11,408,202
|
||
Impairment
charge
|
(130,224)
|
||
Currency
translation differences
|
(725,148)
|
||
Closing
net book value
|
11,108,096
|
||
As
of December 31, 2008
|
|||
Cost
|
11,238,320
|
||
Accumulated
impairment
|
(130,224)
|
||
Net
book value
|
11,108,096
|
2008
|
2007
|
|||||
Huaiyin
Power Company
|
-
|
118,596
|
||||
Yueyang
Power Company
|
100,907
|
100,907
|
||||
Pingliang
Power Company
|
107,735
|
107,735
|
||||
Tuas
Power
|
10,663,879
|
N/A
|
Huaiyin
Power Company
|
9.9%
|
|||
Yueyang
Power Company
|
9.1%
|
|||
Pingliang
Power Company
|
9.5%
|
|||
Tuas
Power
|
7.6%-8.1%
|
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
Software
|
68,131 | 66,770 | |||||||
Deferred
housing loss
|
54,963 | 91,714 | |||||||
Prepayments
for switchhouse and metering station
|
17,746 | - | |||||||
Prepaid
connection fees
|
144,932 | 60,298 | |||||||
Prepaid
territorial waters use right
|
149,097 | 151,650 | |||||||
Prepayments
for equipments
|
155,732 | - | |||||||
Finance
lease receivable
|
97,776 | - | |||||||
Others
|
59,695 | 18,943 | |||||||
Total
|
748,072 | 389,375 |
As
of December 31,
|
|||||
2008
|
|||||
Derivative
financial assets
|
|||||
-Hedging
instruments for cash flow hedge (fuel swap contracts)
|
(17,008 | ) | |||
-Hedging
instruments for cash flow hedge (exchange forwards
contracts)
|
1,767 | ||||
-Financial
instruments at fair value through profit or loss (fuel swap
contracts)
|
30,720 | ||||
Total
|
15,479 | ||||
Derivative
financial liabilities
|
|||||
-Hedging
instruments for cash flow hedge (fuel swap contracts)
|
540,519 | ||||
-Hedging
instruments for cash flow hedge ( exchange forward
contracts)
|
12,379 | ||||
-Financial
instruments at fair value through profit or loss (fuel swap
contracts)
|
6,786 | ||||
Total
|
559,684 |
2009
|
2010
|
2011
|
Total
|
||||||||||||||
Forward
exchange contracts
|
|||||||||||||||||
Amount
of contracts (S$’000)
|
470,009 | 14,024 | 748 | 484,781 | |||||||||||||
Fuel
swap contracts
|
|||||||||||||||||
Amount
of contracts (US$’000)
|
210,599 | 7,654 | 198 | 218,451 |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
Fuel
(coal and oil) for power generation
|
3,986,445 | 1,324,226 | |||||||
Material
and supplies
|
1,328,951 | 1,025,211 | |||||||
5,315,396 | 2,349,437 | ||||||||
Less:
provision for inventory obsolescence
|
(145,549 | ) | (30,147 | ) | |||||
5,169,847 | 2,319,290 |
2008
|
2007
|
|||||||
Beginning of the year
|
(30,147 | ) | (46,540 | ) | ||||
Acquisition
|
(119,630 | ) | - | |||||
Provision
|
(4,326 | ) | (666 | ) | ||||
Write-offs
|
354 | 9,778 | ||||||
Reversal
|
425 | 7,281 | ||||||
Currency translation differences
|
7,775 | - | ||||||
End of the year
|
(145,549 | ) | (30,147 | ) |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
Prepayments
for inventories
|
307,494 | 429,189 | |||||||
Prepayments
for constructions
|
275,085 | 30,641 | |||||||
Other
prepayments
|
238,869 | 114,257 | |||||||
Total
prepayments
|
821,448 | 574,087 | |||||||
Receivable
from Jiangsu Power Grid Company for the construction of transmission
facilities
|
143 | 53,353 | |||||||
Staff
advances
|
11,421 | 8,756 | |||||||
Dividend
receivables
|
- | - | |||||||
Others
|
293,000 | 216,958 | |||||||
Subtotal
other receivables
|
304,564 | 279,067 | |||||||
Less:
provision for doubtful accounts
|
(26,292 | ) | (30,463 | ) | |||||
Total
other receivables, net
|
278,272 | 248,604 | |||||||
Gross
total
|
1,126,012 | 853,154 | |||||||
Net
total
|
1,099,720 | 822,691 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Prepaid to Huaneng Group
|
160,000 | - | ||||||
Due from subsidiaries-other
receivables
|
- | - | ||||||
Prepaid to other related parties
|
28,967 | 560 | ||||||
Total
|
188,967 | 560 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
RMB
|
1,104,056 | 853,154 | ||||||
S$ (RMB equivalent)
|
9,556 | - | ||||||
US$ (RMB equivalent)
|
287 | - | ||||||
JPY (RMB equivalent)
|
12,028 | - | ||||||
AUD(RMB equivalent)
|
85 | - | ||||||
Total
|
1,126,012 | 853,154 |
21. | OTHER RECEIVABLES AND ASSETS, NET (CONT’D) |
Other receivables and assets do not contain significant impaired assets. Movements of provision for doubtful accounts during the years are analyzed as follows: |
2008
|
2007
|
||||||||
Beginning
of the year
|
(30,463 | ) | (33,223 | ) | |||||
Provision
|
- | (33 | ) | ||||||
Reversal
|
1,719 | 1,499 | |||||||
Deemed
disposal of a subsidiary
|
- | 93 | |||||||
Write-off
|
2,452 | 1,201 | |||||||
End
of the year
|
(26,292 | ) | (30,463 | ) |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
Between
1 to 2 years
|
14,057 | 11,869 | |||||||
Between
2 to 3 years
|
13,428 | 4,318 | |||||||
Over
3 years
|
40,371 | 35,246 | |||||||
67,856 | 51,433 |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
Between
1 to 2 years
|
- | 4,783 | |||||||
Between
2 to 3 years
|
3,023 | - | |||||||
Over
3 years
|
26,570 | 30,617 | |||||||
29,593 | 35,400 |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
Accounts
receivable
|
7,153,834 | 6,251,958 | |||||||
Notes
receivable
|
666,255 | 1,674,933 | |||||||
7,820,089 | 7,926,891 | ||||||||
Less:
provision for doubtful accounts
|
(25,589 | ) | (50,573 | ) | |||||
7,794,500 | 7,876,318 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
RMB
|
6,803,558 | 7,926,891 | ||||||
S$ (RMB equivalent)
|
1,014,725 | - | ||||||
US$ (RMB equivalent)
|
1,806 | - | ||||||
Total
|
7,820,089 | 7,926,891 |
2008
|
2007
|
|||||||
Beginning of the year
|
(50,573 | ) | (50,573 | ) | ||||
Provision
|
(26,296 | ) | - | |||||
Reversal
|
13,626 | - | ||||||
Write-off
|
36,947 | - | ||||||
Currency translation differences
|
707 | - | ||||||
End of the year
|
(25,589 | ) | (50,573 | ) |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Within 1 year
|
7,819,926 | 7,737,783 | ||||||
Between 1 to 2 years
|
- | 3,959 | ||||||
Between 2 to 3 years
|
12 | 100 | ||||||
Over 3 years
|
151 | 185,049 | ||||||
7,820,089 | 7,926,891 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Between 1 to 2 years
|
25,589 | - | ||||||
Between 2 to 3 years
|
- | - | ||||||
Over 3 years
|
- | 50,573 | ||||||
25,589 | 50,573 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
2 months to 1 year
|
19,423 | 63,226 | ||||||
Between 1 to 2 years
|
- | 3,959 | ||||||
Between 2 to 3 years
|
12 | 100 | ||||||
Over 3 years
|
151 | 134,476 | ||||||
19,586 | 201,761 |
As
of December 31, 2008
|
||||||||
2008 | 2007 | |||||||
A shares, par value of RMB1.00 each
|
9,000,000 | 9,000,000 | ||||||
Overseas listed foreign shares, par value of RMB1.00 each
|
3,055,383 | 3,055,383 | ||||||
Total
|
12,055,383 | 12,055,383 |
As
of December 31, 2008
|
As
of December 31, 2007
|
||||||||||||||||||||||||||
Original
currency
|
Annual
interest rate
|
Amount
|
Original
currency
|
Annual
interest rate
|
Amount
|
||||||||||||||||||||||
’000 | ’000 | ||||||||||||||||||||||||||
Loans
from Huaneng Group
|
|||||||||||||||||||||||||||
Unsecured
|
|||||||||||||||||||||||||||
RMB
|
|||||||||||||||||||||||||||
-
Fixed rate
|
2,800,000 | 4.32% - 5.67 | % | 2,800,000 | 2,800,000 | 4.32% - 5.67 | % | 2,800,000 | |||||||||||||||||||
Bank
loans
|
|||||||||||||||||||||||||||
Unsecured
|
|||||||||||||||||||||||||||
RMB
|
|||||||||||||||||||||||||||
-
Fixed rate
|
50,112,930 | 3.60%-7.74 | % | 50,112,930 | 30,684,366 | 3.60%-7.05 | % | 30,684,366 | |||||||||||||||||||
US$
|
|||||||||||||||||||||||||||
-
Fixed rate
|
321,710 | 5.95%-6.97 | % | 2,198,760 | 417,630 | 5.95%-6.97 | % | 3,050,616 | |||||||||||||||||||
-
Variable rate
|
1,312,055 | 2.61%-5.15 | % | 8,967,373 | 47,455 | 5.15%-5.51 | % | 346,639 | |||||||||||||||||||
S$ | |||||||||||||||||||||||||||
-
Variable rate
|
145,745 | 2.41%-2.74 | % | 692,727 | - | - | - | ||||||||||||||||||||
€ | |||||||||||||||||||||||||||
-
Fixed rate
|
55,624 | 2 | % | 537,275 | 60,946 | 2 | % | 650,108 | |||||||||||||||||||
62,509,065 | 34,731,729 | ||||||||||||||||||||||||||
Other
loans
|
|||||||||||||||||||||||||||
Unsecured
|
|||||||||||||||||||||||||||
RMB
|
|||||||||||||||||||||||||||
-
Fixed rate
|
130,000 | 5.10 | % | 130,000 | - | - | - | ||||||||||||||||||||
US$
|
|||||||||||||||||||||||||||
-
Variable rate
|
7,143 | 3.24%-5.87 | % | 48,818 | 10,000 | 5.80%-5.87 | % | 73,046 | |||||||||||||||||||
S$ | |||||||||||||||||||||||||||
-
Variable rate
|
8,350 | 4.25 | % | 39,688 | - | - | - | ||||||||||||||||||||
JPY
|
|||||||||||||||||||||||||||
-
Variable rate
|
595,238 | 1.31%-5.80 | % | 45,030 | 833,333 | 5.80 | % | 53,387 | |||||||||||||||||||
263,536 | 126,433 |
Loans
from Huaneng Group
|
Bank
loans
|
Other
loans
|
|||||||||||||||||||||||
As
of December 31,
|
As
of December 31,
|
As
of December 31,
|
|||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||||||||||
1
year or less
|
- | - | 6,507,881 | 4,183,391 | 37,539 | 36,124 | |||||||||||||||||||
More
than 1 year but not more than 2 years
|
- | - | 14,728,355 | 9,661,391 | 37,539 | 36,124 | |||||||||||||||||||
More
than 2 years but not more than 3 years
|
- | - | 9,549,310 | 8,654,175 | 148,770 | 36,124 | |||||||||||||||||||
More
than 3 years but not more than 4 years
|
- | - | 4,555,384 | 3,707,389 | - | 18,061 | |||||||||||||||||||
More
than 4 years but not more than 5 years
|
800,000 | - | 8,046,147 | 2,597,389 | - | - | |||||||||||||||||||
More
than 5 years
|
2,000,000 | 2,800,000 | 19,121,988 | 5,927,994 | 39,688 | - | |||||||||||||||||||
2,800,000 | 2,800,000 | 62,509,065 | 34,731,729 | 263,536 | 126,433 | ||||||||||||||||||||
Less:
amount due within 1 year included under current
liabilities
|
- | - | (6,507,881 | ) | (4,183,391 | ) | (37,539 | ) | (36,124 | ) | |||||||||||||||
2,800,000 | 2,800,000 | 56,001,184 | 30,548,338 | 225,997 | 90,309 |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
Loans
from Huaneng Group
|
|||||||||
-
Wholly repayable within five years
|
800,000 | - | |||||||
-
Not wholly repayable within five years
|
2,000,000 | 2,800,000 | |||||||
2,800,000 | 2,800,000 | ||||||||
Bank
loans
|
|||||||||
-
Wholly repayable within five years
|
36,866,955 | 24,081,310 | |||||||
-
Not wholly repayable within five years
|
25,642,110 | 10,650,419 | |||||||
62,509,065 | 34,731,729 | ||||||||
Other
loans
|
|||||||||
-
Wholly repayable within five years
|
223,848 | 126,433 | |||||||
-
Not wholly repayable within five years
|
39,688 | - | |||||||
263,536 | 126,433 |
As
of December 31,
|
|||||||||
2008
|
2007
|
||||||||
1
year or less
|
4,475,483 | 2,267,851 | |||||||
More
than 1 year but not more than 2 years
|
2,806,836 | 1,816,247 | |||||||
More
than 2 years but not more than 5 years
|
5,291,741 | 2,622,125 | |||||||
More
than 5 years
|
4,973,166 | 1,331,666 | |||||||
Total
|
17,547,226 | 8,037,889 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Accounts and notes payable
|
3,009,966 | 2,349,771 | ||||||
Amounts received in advance
|
877,287 | 844,445 | ||||||
Payables to contractors for construction
|
4,225,236 | 4,540,492 | ||||||
Other payables to contractors
|
444,927 | 339,518 | ||||||
Advances from Yingkou Port Bureau
|
720,235 | - | ||||||
Accrued interest
|
469,823 | 201,492 | ||||||
Tender and performance deposits
|
79,574 | 34,743 | ||||||
Accrued pollutants discharge fees
|
64,367 | 66,664 | ||||||
Accrued water-resources fees
|
48,253 | 16,608 | ||||||
Accrued service fee of intermediaries
|
45,355 | - | ||||||
Others
|
882,457 | 847,336 | ||||||
10,867,480 | 9,241,069 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Due to Huaneng Group
|
2,505 | 3,084 | ||||||
Due to HIPDC
|
101,608 | 80,140 | ||||||
Due to subsidiaries
|
- | - | ||||||
Due to associates
|
21,084 | 12,967 | ||||||
Due to other related parties
|
132,862 | 303,122 | ||||||
Total
|
258,059 | 399,313 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
RMB
|
9,655,505 | 9,241,069 | ||||||
S$ (RMB equivalent)
|
437,590 | - | ||||||
US$ (RMB equivalent)
|
651,487 | - | ||||||
JPY (RMB equivalent)
|
122,764 | - | ||||||
GBP (RMB equivalent)
|
134 | - | ||||||
Total
|
10,867,480 | 9,241,069 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Accounts and notes payable
|
||||||||
Within 1 year
|
2,967,346 | 2,276,034 | ||||||
Between 1 to 2 years
|
29,558 | 71,515 | ||||||
Over 2 years
|
13,062 | 2,222 | ||||||
Total
|
3,009,966 | 2,349,771 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Prepaid taxes
|
||||||||
- Prepaid income tax
|
172,758 | - | ||||||
Taxes payable
|
||||||||
- VAT payable
|
(280,922 | ) | (631,046 | ) | ||||
- Income tax payable
|
(21,357 | ) | (211,418 | ) | ||||
- Others
|
(118,185 | ) | (112,870 | ) | ||||
(420,464 | ) | (955,334 | ) | |||||
As
of December 31, 2008
|
As
of December 31, 2007
|
|||||||||||||||||||||||||
Original
currency
|
Annual
interest rate
|
Amount
|
Original
currency
|
Annual
interest rate
|
Amount
|
|||||||||||||||||||||
’000 | ’000 | |||||||||||||||||||||||||
Secured
|
||||||||||||||||||||||||||
RMB
|
||||||||||||||||||||||||||
-
Fixed rate
|
500,000 | 4.54 | % | 500,000 | - | - | - | |||||||||||||||||||
-
Fixed rate-discounted
notes receivable
|
884,957 | 2.28%-7.92 | % | 884,957 | 302,700 | 3.00%-10.20 | % | 302,700 | ||||||||||||||||||
S$ | ||||||||||||||||||||||||||
-
Variable rate
|
2,246,482 | 1.84%-2.25 | % | 10,677,531 | - | - | - | |||||||||||||||||||
12,062,488 | 302,700 | |||||||||||||||||||||||||
Unsecured
|
||||||||||||||||||||||||||
RMB
|
||||||||||||||||||||||||||
-
Fixed rate
|
16,683,000 | 4.54%-7.47 | % | 16,683,000 | 11,367,700 | 4.35%-6.72 | % | 11,367,700 | ||||||||||||||||||
28,745,488 | 11,670,400 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Deferred income tax assets:
|
||||||||
- Deferred income tax assets to be recovered after more than 12
months
|
441,273 | 209,667 | ||||||
- Deferred income tax assets to be recovered within 12
months
|
329,633 | 87,635 | ||||||
770,906 | 297,302 | |||||||
Deferred income tax liabilities:
|
||||||||
- Deferred income tax liabilities to be realized after more than 12
months
|
(1,749,712 | ) | (1,095,613 | ) | ||||
- Deferred income tax liabilities to be realized within 12
months
|
(76,067 | ) | (82,580 | ) | ||||
(1,825,779 | ) | (1,178,193 | ) | |||||
(1,054,873 | ) | (880,891 | ) |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Deferred income tax assets
|
316,699 | 211,654 | ||||||
Deferred income tax liabilities
|
(1,371,572 | ) | (1,092,545 | ) | ||||
(1,054,873 | ) | (880,891 | ) |
2008
|
2007
|
|||||||
Beginning of the year
|
(880,891 | ) | (980,468 | ) | ||||
Deemed disposal of Sichuan Hydropower
|
- | 314,309 | ||||||
Acquisitions (Note 40)
|
(1,162,824 | ) | (5,614 | ) | ||||
Credited to the income statement (Note 35)
|
288,288 | 195,300 | ||||||
Charged directly to equity
|
626,222 | (404,418 | ) | |||||
Currency translation differences
|
74,332 | - | ||||||
End of the year
|
(1,054,873 | ) | (880,891 | ) |
Hedging
reserve
|
Amortization
of land use rights
|
Provision
for
impairment losses
|
Depreciation
|
Accrued
expenses
|
Tax
refund on purchase of domestically manufactured equipment
|
Deductible
tax losses
|
Others
|
Total
|
||||||||||||||||||||||||||||
As
of January 1, 2007
|
- | 10,370 | 78,679 | 33,164 | 6,449 | - | - | 84,575 | 213,237 | |||||||||||||||||||||||||||
Deemed
disposal of Sichuan Hydropower
|
- | - | (6,483 | ) | (6,979 | ) | (1,301 | ) | - | - | (2,008 | ) | (16,771 | ) | ||||||||||||||||||||||
Acquisition
|
- | - | - | - | 1,440 | - | - | - | 1,440 | |||||||||||||||||||||||||||
Credited
/ (Charged) to the income statement
|
- | 6,311 | (26,666 | ) | 10,985 | 1,609 | 126,742 | 10,913 | (30,498 | ) | 99,396 | |||||||||||||||||||||||||
As
of December 31, 2007
|
- | 16,681 | 45,530 | 37,170 | 8,197 | 126,742 | 10,913 | 52,069 | 297,302 | |||||||||||||||||||||||||||
Acquisition
(Note 40)
|
(15,399 | ) | - | - | 569 | - | - | - | 22,599 | 7,769 | ||||||||||||||||||||||||||
Credited
/ (Charged) to the income statement
|
2,944 | (265 | ) | (11,609 | ) | 2,162 | 5,045 | (15,483 | ) | 325,872 | 44,105 | 352,771 | ||||||||||||||||||||||||
Credited
to the equity
|
116,956 | - | - | - | - | - | - | - | 116,956 | |||||||||||||||||||||||||||
Currency
translation differences
|
(2,236 | ) | - | - | (118 | ) | - | - | - | (1,538 | ) | (3,892 | ) | |||||||||||||||||||||||
As
of December 31, 2008
|
102,265 | 16,416 | 33,921 | 39,783 | 13,242 | 111,259 | 336,785 | 117,235 | 770,906 |
Fair
value gains
|
Amortization
of goodwill and negative goodwill
|
Amortization
of land use rights
|
Depreciation
|
Power
generation license
|
Others
|
Total
|
||||||||||||||||||||||
As
of January 1, 2007
|
(191,262 | ) | (149,693 | ) | (58,219 | ) | (787,167 | ) | - | (7,364 | ) | (1,193,705 | ) | |||||||||||||||
Deemed
disposal of
Sichuan Hydropower
|
- | - | 6,043 | 325,037 | - | - | 331,080 | |||||||||||||||||||||
Acquisitions
|
- | - | (889 | ) | (6,165 | ) | - | - | (7,054 | ) | ||||||||||||||||||
(Charged)
/ Credited to the
income statement
|
(13,070 | ) | (4,083 | ) | (14,064 | ) | 122,815 | - | 4,306 | 95,904 | ||||||||||||||||||
Charged
directly to equity
|
(404,418 | ) | - | - | - | - | - | (404,418 | ) | |||||||||||||||||||
As
of December 31, 2007
|
(608,750 | ) | (153,776 | ) | (67,129 | ) | (345,480 | ) | - | (3,058 | ) | (1,178,193 | ) | |||||||||||||||
Acquisition
|
- | - | (76,600 | ) | (365,261 | ) | (728,732 | ) | - | (1,170,593 | ) | |||||||||||||||||
(Charged)
/ Credited to the
income statement
|
- | 43,292 | 3,365 | (91,277 | ) | - | (19,863 | ) | (64,483 | ) | ||||||||||||||||||
Charged
directly to equity
|
521,129 | - | - | - | - | (11,863 | ) | 509,266 | ||||||||||||||||||||
Currency
translation
differences
|
- | - | 4,829 | 26,503 | 46,761 | 131 | 78,224 | |||||||||||||||||||||
As
of December 31, 2008
|
(87,621 | ) | (110,484 | ) | (135,535 | ) | (775,515 | ) | (681,971 | ) | (34,653 | ) | (1,825,779 | ) |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Year of expiry
|
||||||||
2008
|
N/A | - | ||||||
2009
|
8,502 | 12,970 | ||||||
2010
|
69,804 | 30,252 | ||||||
2011
|
44,038 | 46,574 | ||||||
2012
|
269,160 | 225,766 | ||||||
2013
|
2,530,945 | N/A | ||||||
2,922,449 | 315,562 |
For
the year ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Current income tax expense
|
48,565 | 1,033,570 | 1,304,761 | |||||||||
Deferred income tax (Note 33)
|
(288,288 | ) | (195,300 | ) | (177,062 | ) | ||||||
(239,723 | ) | 838,270 | 1,127,699 |
For
the year ended December 31,
|
|||||||||
2008
|
2007
|
2006
|
|||||||
Average
statutory tax rate
|
20.06
|
%
|
18.03
|
%
|
19.73
|
%
|
|||
Effect
of tax holiday
|
(1.21
|
%)
|
(3.86
|
%)
|
(4.60
|
%)
|
|||
Tax
credit relating to domestically manufactured equipment*
|
(2.52
|
%)
|
(2.24
|
%)
|
-
|
||||
Deductible
tax loss not recognized as deferred income tax assets in the current
year
|
(9.67
|
%)
|
0.58
|
%
|
0.10
|
%
|
|||
Others
|
(1.66
|
%)
|
(1.06
|
%)
|
(1.16
|
%)
|
|||
Effective
tax rate
|
5.00
|
%
|
11.45
|
%
|
14.07
|
%
|
|
*This
represented tax credit granted to certain power plants on their purchases
of certain domestically manufactured equipment upon the approval of the
tax bureaus.
|
As
of December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Restricted cash
|
199,248 | 220,495 | 203,863 | |||||||||
Cash and cash equivalents
|
5,566,625 | 7,312,265 | 3,207,192 | |||||||||
Total
|
5,765,873 | 7,532,760 | 3,411,055 |
As
of December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
RMB
|
4,438,146 | 7,374,824 | 3,249,375 | |||||||||
S$(RMB equivalent)
|
1,164,861 | - | - | |||||||||
US$ (RMB equivalent)
|
156,762 | 157,936 | 161,680 | |||||||||
JPY(RMB equivalent)
|
6,104 | - | - | |||||||||
Total
|
5,765,873 | 7,532,760 | 3,411,055 |
(i)
|
Commitments
mainly relate to the construction of new power projects, certain
complementary facilities and renovation projects for existing power plants
and the purchase of coal. Details of such commitments are as
follows:
|
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Contracted but not provided for
|
||||||||
- purchase of inventories
|
5,536,211 | 3,145,904 | ||||||
- construction
|
18,262,567 | 15,418,352 | ||||||
Sub-total
|
23,798,778 | 18,564,256 | ||||||
Authorized but not contracted for
|
||||||||
- purchase of inventories
|
85,087 | 3,579,423 | ||||||
- construction
|
746,675 | 2,626,945 | ||||||
Sub-total
|
831,762 | 6,206,368 | ||||||
Total
|
24,630,540 | 24,770,624 |
(ii)
|
From
2004 to 2007, the Company also entered into various long-term agreements
subject to termination only under certain limited circumstances for the
procurement of coal from 2005 to 2009 for use in power generation. In most
cases, these agreements contain provisions for price escalations and
minimum purchase level clauses. Purchases for the years ended December 31,
2008 and 2007 were approximately RMB7,893 million and RMB7,852 million
respectively. The future purchase commitment under the above agreements
are as follows:
|
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
2008
|
N/A | 8,760,250 | ||||||
2009
|
7,893,329 | 7,808,250 | ||||||
7,893,329 | 16,568,500 |
(iii)
|
Jinling
Power Company entered into a Gas Purchase Agreement with PetroChina
Company Limited (“PTR”) on December 29, 2004, pursuant to which Jinling
Power Company purchases gas from PTR from the date on which it commenced
commercial operations to December 31, 2023. According to the
agreement, Jinling Power Company is required to pay to PTR at a minimum
annual price equivalent to 486.9 million standard cubic meter of gas from
2008 to the end of gas supply period, which amounted to approximately
RMB694 million based on current market price as of December 31,
2008. The purchase price is negotiated annually between the
contracting parties based on the latest ruling set out by the National
Development and Reform Commission. For the year ended December 31, 2008,
the annual purchase amounted to RMB688
million.
|
(iv)
|
As
of December 31, 2008, SinoSing Power has the following purchase
commitments with subsidiaries of
Temasek:
|
|
·
|
Purchase
of 17.6 billion British Thermal Unit (“BBtu”) of natural gas per day from
Gas Supply Pte Ltd. during the plateau period up to December 31, 2014 with
possible decrease in gas purchase volume thereafter. The agreement will be
terminated on or before 2023 subject to the termination provisions within
the agreement. As of December 31, 2008, the unit contract price was
RMB101,949 per
BBtu. Purchase for the year ended December 31, 2008 amounted to
approximately S$111 million.
|
|
·
|
Purchase of 157.5 BBtu of natural
gas per day from SembCorp Gas Pte Ltd. during the plateau period up to
December 31, 2013 with possible decrease in gas purchase volume
thereafter. The agreement will be terminated on or before 2023 subject to
the termination provisions within the agreement. As of December 31, 2008,
the unit contract price was RMB97,060 per BBtu. Purchase for the year
ended December 31, 2008 amounted to approximately S$892
million.
|
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Land and buildings
|
||||||||
-
not later than 1 year
|
31,707 | 29,254 | ||||||
-
later than 1 year and not later than 2 years
|
3,253 | 3,253 | ||||||
-
later than 2 years and not later than 5 years
|
9,760 | 9,760 | ||||||
-
later than 5 years
|
104,632 | 107,885 | ||||||
149,352 | 150,152 |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
Financial guarantees
|
||||||||
-
granted to an associate
|
43,563 | 86,063 | ||||||
-
granted to a subsidiary
|
- | - | ||||||
43,563 | 86,063 |
40. |
MATERIAL
BUSINESS COMBINATION (CONT’D)
|
||||
Details of consideration and goodwill arising from the acquisition of Tuas Power by SinoSing Power are as follows: | |||||
Consideration
paid in cash
|
21,675,288 | ||||
Directly
incremental costs
|
88,164 | ||||
Total
cost of combination
|
21,763,452 | ||||
Less:
fair value of net identifiable assets acquired
|
(10,374,425 | ) | |||
Goodwill
|
11,389,027 | ||||
The goodwill is attributable to leading position and profitability of Tuas Power in its market. | |||||
The assets and liabilities arising from the acquisition of Tuas Power are as follows: |
Fair
value
|
Acquiree’s
carrying amount
|
||||||||
Cash and cash equivalents
|
1,619,108 | 1,619,108 | |||||||
Property,
plant and equipment
|
6,074,396 | 5,715,125 | |||||||
Land
use rights
|
614,549 | 213,757 | |||||||
Power
generation licence
|
4,073,278 | 24,767 | |||||||
Deferred
income tax assets
|
650 | 650 | |||||||
Other
non-current assets
|
189,863 | 165,097 | |||||||
Inventories
|
746,360 | 746,360 | |||||||
Derivative
financial assets
|
180,595 | 180,595 | |||||||
Receivables
|
1,297,323 | 1,297,323 | |||||||
Payables
|
(3,007,452 | ) | (3,007,452 | ) | |||||
Salary
and welfare payables
|
(14,952 | ) | (14,952 | ) | |||||
Borrowings
|
(102,592 | ) | (102,592 | ) | |||||
Derivative
financial liabilities
|
(98,180 | ) | (98,180 | ) | |||||
Deferred
income tax liabilities
|
(1,163,474 | ) | (293,474 | ) | |||||
Minority
interests
|
(35,047 | ) | (35,047 | ) | |||||
Net
identifiable assets acquired
|
10,374,425 | 6,411,085 | |||||||
Consideration
paid in cash
|
21,675,288 | ||||||||
Direct
costs relating to acquisition
|
82,583 | ||||||||
Less:
cash and cash equivalents from the subsidiary acquired
|
(1,619,108 | ) | |||||||
Net
cash paid for acquiring the subsidiary
|
20,138,763 |
|
Huaneng Power
International, Inc.
|
|
By:
/s/Gu
Biquan
|
|
Name:
Gu Biquan
|
|
Title:
Vice President and Secretary to the
Board
|