2010 Annual Report

DATANG INTERNATIONAL POWER GENERATION CO., LTD.
                              (Stock Code: 00991)

                              2010 Annual Report


Contents 


-- Company Profile 
-- Distribution of Projects 
-- Major Events in 2010 
-- Financial and Operating Highlights 
-- Chairman's Statement 
-- Management Discussion and Analysis 
-- Fulfillment of Social Responsibilities 
-- Human Resources Overview 
-- Management of Investor Relations 
-- Investor Q&A 
-- Corporate Governance Report 
-- Report of the Directors 
-- Report of the Supervisory Committee 
-- Taxation in the United Kingdom 
-- Independent Auditor's Report 
-- Consolidated Statement of Comprehensive Income 
-- Consolidated Statement of Financial Position 
-- Consolidated Statement of Changes in Equity 
-- Consolidated Statement of Cash Flows 
-- Notes to the Financial Statements 
-- Differences between Financial Statements 
-- Corporate Information 
-- Glossary of Terms 



Focus in Power Generation
Pursue Synergistic Diversifications
Brighten Tomorrow with Clean Energy

All these years, Datang Power has been steadfastly implementing its development 
strategy of "focusing in the power generation business whilst seeking synergistic 
diversifications". It has gone a long way towards achieving diversified expansion 
of its power sources structure as well as its assets structure: concurrent 
developments on coal-fired power, hydropower and wind power; continued capacity 
growth on clean and renewable energies; and continuous growth on various business 
segments including power generation, coal, coal-to-chemical, transport and 
recycling economy.

During the Twelfth Five-year Plan period, Datang Power will continue to focus in 
the power generation business whilst capitalising on the complementary advantages 
of various power sources, and will rely on the coal operations as a foundation for 
strengthening the Group's risk-aversion capability. It will build the 
coal-to-chemical business into a new profit platform, and develop railway, port 
and shipping into a transportation backbone to link up the Group's 
upstream-downstream assets chain. In fully leveraging the synergy of its 
diversified businesses, Datang Power aims to enhance its competitiveness and 
profitability in various energy sectors, building itself into a brighter tomorrow.


Company Profile


STRATEGIC POSITIONING

The Company focuses in the power generation business whilst deploying 
diversifications; and strives for profitability as a priority whilst seeking 
synergistic developments. Datang Power aims to develop itself into a company with 
an operation-cum-holding orientation, an integrated energy company that enjoys a 
domestic leadership position and international reputation having strong 
development capabilities, profitability and competitiveness.

IMPLEMENTATION STRATEGIES

-- The Company will enhance its coal-fired power; aggressively expand its 
   hydropower; continuously develop wind power; strategically develop nuclear 
   power; appropriately develop solar energy; focus on suitable coal operations;
   actively and steadily develop coal-to-chemical; accelerate the development of 
   high-aluminium pulverised fuel ash integrated use projects; and secure a 
   complementary development of railway, port and shipping.

-- The Company will gather its strengths to build six major profit bases with core 
   competitiveness, with a view to strengthening the capabilities of important 
   regions and enhancing the Company's brand and profitability. The six major 
   profit bases are the Western Inner Mongolia Coal-Electricity-Aluminium Profit 
   Base, the Eastern Inner Mongolia Chemical Profit Base, the Pan-Bohai 
   Co-generation Profit Base, the Southwestern Hydropower Profit Base, the 
   Southeastern Coastal Coal- Fired Power Profit Base and the New Energy Power 
   Generation Profit Base, respectively.

COMPANY INTRODUCTION

Datang International Power Generation Company Limited ("Datang Power" or the 
"Company", formerly Beijing Datang Power Generation Company Limited) was 
incorporated as a joint stock limited company and registered with the State 
Administration for Industry and Commerce of the People's Republic of China (the 
"PRC") on 13 December 1994. As one of the largest independent power producers in 
China, Datang Power develops various businesses including coal, coal-to-chemical, 
transportation and recycling economy according to its strategy of "focusing in the 
power generation business whilst complementing with synergistic diversifications". 
As at 31 December 2010, the total consolidated assets of the Company and its 
subsidiaries amounting to approximately RMB212.915 billion. Total installed 
capacity in operation of the Company and its subsidiaries amounted to 36,300 MW. 
The businesses in power generation, coal-to-chemical, transportation and recycling 
economy of the Company spread across 17 provinces (municipalities and autonomous 
regions) throughout the country.

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Major Events in 2010

 
January

-- Fujian Provincial Development and Reform Commission issued the "Reply on the 
   Approval on Changle Wushan Wind Power Plant Project" (Minfagaijiaoneng [2010] 
   No. 2) and agreed to the construction of Changle Wushan Wind Power Plant with 
   total wind power installed capacity of 28MW.

February

-- Unit 2 (300MW) at Hebei Datang International Zhangjiakou Thermal Power 
   Generation Company Limited successfully passed the 168-hour full-load operation 
   test and was put into trial generation.

March

-- The National Development and Reform Commission issued the "Reply on Approval on 
   Liaoning Datang International Fuxin Coal-based Gas Company Limited Project" 
   (Fagainengyuan [2010] No. 378), approving the Liaoning Datang International Fuxin
   Coal-based Gas Project. The project's production capacity is 4 billion 
   cubic-metres per annum (12 million cubic-metres per day) of coal-based natural 
   gas, with by-products of 509,000 tonnes of tar and 101,000 tonnes of naphtha. 
   The project commenced official construction in the same month.

-- Units 1 to 3 (3 x 660MW) at Jiangsu Datang International Lvsigang Power Generation
   Company Limited successfully passed the 168-hour full-load operation test and were
   put into trial generation.

-- Completed the issuance of non-public offering of 530,000,000 A shares to target 
   subscribers, raising net proceeds of RMB3,248,246,600. Upon completion of the 
   issuance, total share capital of the Company increased from 11,780,037,578 shares 
   to 12,310,037,578 shares.
 
April

-- Datang Power was awarded the Gold Award of "2009 Business Awards" and the award of
   "2009 China's Most Promising Companies" by the Asset Magazine.

May

-- Unit 2 (80MW) at Malutang Hydropower Station Phase 2  of  Yunnan Datang 
   International Wenshan Hydropower Development Company Limited completed 72-hour 
   full-load operation test and was put into trial generation.

-- Unit 4 at Tianjin Datang International Panshan Power Generation Company Limited
   was named "2009 National Gold Medal for Being Reliable Power Generation Units" in 
   the 600 MW coal-fired category, an award granted jointly by the State Electricity 
   Regulatory Commission and the China Electricity Council.

June

-- Unit 4 (660MW) at Jiangsu Datang International Lvsigang Power Generation Company 
   Limited successfully passed 168-hour full-load operation test and was put into 
   trial generation.

-- Phase 1 Project (with an annual production of 10 million tonnes) of the open-cut 
   Shengli Coal Mine East Unit 2 of Inner Mongolia Datang International Xilinhaote 
   Mining Company Limited passed the construction completion acceptance check by the 
   National Energy Board and the project was officially delivered for production.

July

-- National Development and Reform Commission issued the "Reply on Approval on Units
   3 and 4 of Guangdong Datang Chaozhou Sanbaimen Power Plant" (Fagainengyuan [2010] 
   No. 1584), approving Units 3 and 4 of Guangdong Datang International Chaozhou 
   Power Generation Company Limited. The project consists of two 1,000 MW 
   ultra-supercritical coal-fired generating units and was a milestone for the 
   Company's first-ever 1,000 MW generating unit.

-- Datang Power won the Golden Ox Award of the "China Top 100 Listed Companies". 
   Meanwhile, it ranked No. 1 in the public utilities sector of the "China Top 100 
   Listed Companies" and among the top places in the sub-ranking lists of revenue 
   from core business and market value.

August

-- Members of the seventh session of the Board and the Supervisory Committee were 
   elected at the Company's shareholders' general meeting.
 
September

-- The main tower wall of the prilling tower of the urea plant, a milestone 
   construction of Datang Hulunbei'er Fertilizer Company Limited 18 . 30, completed 
   the construction of roof-sealing. The prilling tower is 88.95m in height.

October

-- The construction of the wind power station of Wulong Xingshun Wind Power 
   (46.75MW) had completed and commenced generation.

-- The 45,000-tonne bulk carrier No. 1 (Datang No. 7) of Jiangsu Datang Shipping 
   Company Limited was christened.

November

-- National Development and Reform Commission issued the "Reply on Approval on 
   Sichuan Daduhe Changheba Hydropower Station Project" (Fagainengyuan [2010] No. 
   2665) and agreed to the construction of Sichuan Daduhe Changheba Hydropower 
   Station. Four 650MW mixed flow turbine generator units with a total installed
   capacity of 2,600MW will be installed at Changheba Hydropower Station.

-- 45,000-tonne bulk carrier No. 2 (Datang No. 6) of Jiangsu Datang Shipping 
   Company Limited was christened.

-- The Company was awarded as "Top 250 Global Energy Companies" and "Fastest 
   Growing Energy Companies in Asia" by Platts.

December

-- Three wind power units (each 4.5 MW) of the Phase 1 project at Hebei Chongli 
   Xiqiaoliang, 48 MW power project at the Liaoning Faku Fengbeibao Wind Power 
   Station, 14 wind power units (21 MW) of the Phase 3 project at Shanxi Zuoyun 
   Wind Power, the first unit (1.5 MW) of the Phase 2 project at Inner Mongolia 
   Hongmu Wind Power and two units (4 MW) of the Fujian Changle Wushan Wind Power
   Project commenced on-grid power generation.

-- The Fujian Zhaoan Meiling Wind Power Plant Project (48 MW), the Liaoning 
   Manjing Wind Power Phase 2 Project (49.5 MW) and the Liaoning Fuzhoucheng Wind
   Power Plant Phase 1 Project (48 MW) received respective approvals by the Fujian
   Provincial Development and Reform Commission, the Liaoning Provincial 
   Development and Reform Commission and the Dalian Municipal Development and 
   Reform Commission.

-- The Lixianjiang Gelantan Hydropower Station Project of Yunnan Datang 
   International Power Company Limited was awarded "2010 China's High-Quality 
   Construction Award". The project was Datang International's first hydropower
   project to attain high-quality construction award at the State level and was 
   the country's only hydropower project to attain such honour in 2010.

-- 45,000-tonne bulk carrier No. 3 (Datang No. 8) of Jiangsu Datang Shipping 
   Company Limited was christened.

-- National Development and Reform Commission issued the "Reply on Approval on the
   "Replacing Small Units with Large Units" Project of Fujian Ningde Power Plant 
   Phase 2" (Fagainengyuan [2010] No. 3156) , approving Units 1 and 2 (2 x 660 MW)
   of the Phase 2 project at Fujian Datang International  Ningde Power Generation
   Company Limited.
 

Financial and Operating Highlights

Consolidated Statements of Comprehensive Income (Note)
(Amounts expressed in millions of RMB)

For the year ended 31 December         2006      2007      2008        2009      2010
                                                                  (Restated)   

Operating revenue                    24,899    32,763    36,900      47,943    60,672
Profit before tax                     4,664     6,063       600       3,132     4,700
Income tax expense                   (1,081)   (1,498)      (72)       (615)     (871)
Profit for the year 
 attributable to:
  - Owners of the Company             2,778     3,564       749       1,537     2,570
  - Non-controlling interests           805     1,001      (221)        980     1,259  


Consolidated Statements of Financial Position (Note)
(Amounts expressed in millions of RMB)

As at 31 December                      2006      2007      2008        2009      2010
                                                                  (Restated)  
  
Total assets                         90,711   119,789   158,719     184,149   212,915
Total liabilities                   (63,510)  (85,434) (127,813)   (151,376) (174,483)
Non-controlling interests            (3,305)   (4,599)   (4,654)     (6,650)   (7,582)
Equity attributable to owners
 of the Company                      23,896    29,756    26,252      26,123    30,850

Note:  Financial highlights as at and for the years ended 31 December 2006 and 2007 have
       not been restated as a result of consolidation of the business entities under 
       common control taken place in 2009.



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Chairman's Statement

Looking forward to 2011 which marks the commencement of the "Twelfth Five-year Plan",
the Chinese government has created a favourable environment for the transformation of
the economic development pattern by placing the focus of its macroeconomic policies on
accelerating economic restructuring and improving the quality and profitability of
development. In 2011, Datang Power will accelerate the implementation of its strategy
which is aimed at focusing in the power generation business whilst complementing with
synergistic diversifications. The Company will uphold an integrated-assets positioning:
with the power generation business as its core development; with coal operations as its
foundation; with coal-to-chemical projects as a new source of profits; and with railway,
port and shipping as a transportation backbone. These will ultimately develop Datang
Power into a company with an operation-cum-holding orientation, an integrated energy
conglomerate that enjoys domestic leadership and international reputation having strong
development capabilities, profitability and competitiveness, with a view to building 
longterm competitiveness for the Company and achieving stable returns for shareholders.
 

To all shareholders,

In 2010, China took the lead in the world in emerging from the trough of the global 
financial crisis, making a significant economic recovery and registering an annual GDP 
increase of 10.3% year-on-year. However, the unfavourable situations for domestic power 
generation enterprises remained unchanged, where prices of thermal coal stayed at a high 
level and rose for a number of times, while on-grid electricity tariffs failed to be 
adjusted in a synchronised manner. Faced with the complex and volatile external 
environment and unprecedented severe challenges, all staff of Datang Power endeavoured 
to make innovative development ideas and models based on the theme of scientific 
development and the impetus of carrying out advanced and excellent performance. We 
braved the difficulties, struggled to make progress and successfully completed the 
production and operation tasks for the year. We strode ahead in various aspects 
including scientific development, production safety, green operations, staff development, 
harmony and win-win, thereby successfully accomplishing the Company's "Eleventh Five-year" 
development objectives.
 
In 2010, we fully pushed forward the implementation of the strategy aimed at focusing 
in the power generation business whilst complementing with synergistic diversifications, 
strived to transform the development model, further launched the campaign on "Two 
Increases and Two Reductions, Pursuit of Profits and Conquest of Difficulties", and also 
pushed forward the optimisation and upgrade of our assets structure while achieving 
substantial growth in operating results. As at 31 December 2010, total installed power 
generation capacity of the Company and its subsidiaries amounted to 36,300 MW. While 
optimising and adjusting its power generation business structure, the Company continued 
to proceed with the development of non-power assets such as coal and coal-to-chemical 
projects. As a result, the deployment of synergistic development of diversified assets 
has begun to take shape.

As at 31 December 2010 (the "Year"), total consolidated assets of the Company and its 
subsidiaries amounted to approximately RMB212,915 million, representing an increase of 
approximately 15.62% over the corresponding period of 2009 (the "Previous Year"). 
Consolidated operating revenue amounted to approximately RMB60,672 million, representing 
an increase of approximately 26.55% as compared to the Previous Year. Profit attributable 
to equity holders of the Company amounted to approximately RMB2,570 million, representing 
an increase of approximately 67.24% as compared to the Previous Year. Earnings per share 
was approximately RMB0.21, representing an increase of approximately RMB0.08 per share as 
compared to the Previous Year.

In 2010, the Company continued to maintain production safety on a continuously stable 
basis, achieving an overall equivalent availability coefficient of operational generating 
units of 95.31% for the Company and its subsidiaries, an increase of 0.55 percentage 
points as compared to the Previous Year. Power generated by the Company and its 
subsidiaries amounted to 178.48 billion kWh, an increase of 25.81% as compared to the 
Previous Year. Unit coal consumption was approximately 323.59 g/kWh, a decrease of 
approximately 2.92 g/kWh as compared to the Previous Year.
 
Looking forward to 2011 which marks the commencement of the "Twelfth Five-year Plan", the 
Chinese government has created a favourable environment for the transformation of the 
economic development pattern by placing the focus of its macroeconomic policies on 
accelerating economic restructuring and improving the quality and profitability of 
development. Against this backdrop, Datang Power is yet faced with both challenges and 
opportunities. As to challenges, firstly, the State's monetary policy will be gradually 
tightened; secondly, coal-fired power enterprises will continue to face a grave situation 
with the possibility of incurring losses; and thirdly, the pressure from the requirements 
of energy conservation and emissions reduction is mounting gradually. For opportunities, 
firstly, the domestic economic landscape will remain favourable in the long run; secondly, 
the utilisation hours of the Company's generating units will continue to increase steadily; 
thirdly, we will further capitalise on the strengths of our generating units; and fourthly, 
the Company's diversified developments will gradually see their harvest day.

In 2011, Datang Power will accelerate the implementation of its strategy which is aimed at 
focusing in the power generation business whilst complementing with synergistic 
diversifications. The Company will uphold an integrated-assets positioning: with the power 
generation business as its core development; with coal operations as its foundation; with 
coal-to-chemical projects as a new source of profits; and with railway, port and shipping 
as a transportation backbone. The Company will enhance its coal-fired power; aggressively 
expand its hydropower; continuously develop wind power; strategically develop nuclear 
power; appropriately develop solar energy; focus on suitable coal operations; actively and 
steadily develop coal-to-chemical; accelerate the development of high-aluminium pulverised 
fuel ash integrated use projects; and secure a complementary development of railway, port 
and shipping. In regions where it has advantages in terms of resources, market and policy, 
the Company will reinforce the dynamic integration of assets development with regional 
development; make innovative development ideas and models on a continuous basis with the 
support of projects; and focus its strengths on developing a batch of integrated and 
clustering projects that combine good profitability, advanced technologies, integrated 
innovations and synergetic diversifications. These will ultimately develop Datang Power 
into a company with an operation-cum-holding orientation, an integrated energy 
conglomerate that enjoys domestic leadership and international reputation having strong 
development capabilities, profitability and competitiveness, with a view to building 
long-term competitiveness for the Company and achieving stable returns for shareholders.

In the new year, Datang Power's visions are to make top-notch achievements, set top-notch 
standards and provide top-notch development models. The Company will proactively carry out 
full-scale accountability management and a performance appraisal mechanism for all staff; 
aim to transform the development model, adjust the structure, strengthen the mechanism and 
enhance profitability within a very short time; build itself into a top-rated enterprise, 
unleash potentials and make innovations according to the benchmarks by developing key 
projects into quality projects; and aggressively explore a new way for the dynamic 
integration of high-level scientific development with persistent excellent performance to 
create a new value for shareholders.

Last but not least, may I express  my sincere gratitude to all shareholders, various 
organisations and friends for their trust and support.


                                                                                Liu Shunda
                                                                                  Chairman
                                                                             22 March 2011


 
Management Discussion and Analysis


The Company is one of the largest independent power producers in the PRC. As at the end of 
2010, the Group managed a total installed capacity of approximately 36,300.3MW. The power
generation business of the Group is mainly distributed across the power grids of North China, 
Gansu, Jiangsu, Zhejiang, Yunnan, Fujian, Guangdong, Chongqing, Jiangxi, Liaoning, Ningxia 
and Qinghai.


A.  Overview

In 2010, the Company and its subsidiaries (the "Group") adhered to implementing the strategy 
of "focusing in the power generation business whilst complementing with synergistic 
diversifications". It steadily enhanced its management and control capabilities; increased 
economic efficiency and shareholders' returns; placed emphasis on resources saving and 
environmental protection; fulfilled social responsibilities; and seized business opportunities 
and overcame difficulties, thereby achieving the business targets for the Year.

1.  Safe Production was Stably Maintained

    The Company aims to build a fundamentally safe enterprise. The Company has experienced no 
    significant incidents at its facilities and no casualties for the Year. It has fulfilled  
    its roles of securing power supply for the Shanghai World Expo and the Guangzhou Asian 
    Games.

2.  Overall Accomplishment of Operation Targets

    The Company's power generation amounted to 178.478 billion kWh for the whole year, 
    representing an increase of 25.81% year-on-year. Operating revenue amounted to 
    approximately RMB60,672 million, representing an increase of 26.55% over the Previous Year. 
    Net profit attributable to equity holders of the Company amounted to approximately 
    RMB2,570 million, representing an increase of approximately 67.24% over the Previous Year. 
    As at 31 December 2010, total consolidated assets of the Group amounted to RMB212,915 
    million, representing an increase of 15.62% year-on-year. Net assets attributable to the 
    equity holders of the Company amounted to RMB30,850 million, representing an increase of 
    18.10% year-on-year. The assets-to-liabilities ratio was 81.95%, representing a decrease 
    of 0.25 percentage point year-on-year.

3.  Breakthrough on Preliminary Works

    For the Year, seven power generation projects were approved with total generation capacity
    of 6,093.5 MW. The Fuxin Coal-based Natural Gas Project with an annual output of 4 billion
    cubic meters was approved. The Phase 2 project of Shengli Coal Mine East Unit 2, with the 
    construction scale of 20 million tonnes per year, was approved in March 2011.
 
4.  Projects Construction Commenced Operations and Achieved Good Results

    Total capacity for generation units which commenced operation amounted to 5,558.5MW. As at
    31 December 2010, the Group's installed capacity amounted to 36,300.3 MW, representing an 
    increase of 18.08% year-on-year. Of such capacity, coal-fired power amounted to 32,010 MW,
    accounting for 88.18%; hydropower amounted to 3,855.9 MW, accounting for 10.62%; and wind
    power amounted to 434.4 MW, accounting for 1.20%.

5.  Continuously Intensifying Energy Conservation and Emissions Reduction

    In 2010, the Group achieved coal consumption of 323.59 g/kWh, a decrease of 2.92 g/kWh 
    year-on-year. The emission rates of sulphur dioxide, nitrogen oxides, smoke ash and waste
    water of the Group decreased by 5.34%, 9.40%, 14.52% and 43.44% year-on-year to 0.420g/kWh,
    1.396g/kWh, 0.126g/kWh and 75g/kWh, respectively, which were substantially lower than the
    national average levels.

6.  More Effective Capital Operation

    In 2010, the Company completed the acquisition of 70% equity interests in Inner Mongolia 
    Baoli Coal Company Limited and achieved a profit in the same year of acquisition. The 
    Company acquired the entire equity interest in Fuxin Jinshilun Wind Power Company, which
    has been renamed as Liaoning Datang International Fuxin Wind Power Company Limited, and has
    basically completed the acquisition of the hydropower stations at the Jintang River Basin 
    in Sichuan. The proceeds (net: RMB3,248,246,600) from the 2009 non-public issue of A shares
    were booked. The new proposal of non-public issue of A shares has been approved by the 
    Public Offering Review Committee of the China Securities Regulatory Commission.

7.  Steady Enhancement of Management and Control Capabilities

    The three-level management system of the Company basically operated well. The 
    responsibility body at each level has obviously enhanced its capability of duty fulfillment.
    By means of effective integration of management resources of the enterprise, the Company has
    formulated a new scheme of online management featuring "four in one", that is, mechanisms
    and systems, codes and standards, operation flows and appraisals of results.

8.  Winning Honours in the Capital Market

    The Company won the "China Top 100 Listed Companies - Gold Ox Award" again, ranking 1st in
    the public utilities sector. It was named again among the "Global Top 250 Global Energy 
    Companies" by Platts Energy Information, and ranked 16th among the world's fastest growing
    energy corporations. The Company was on the lists of "Fifth China Investor Relations 
    Management Top 100" and "Contribution to Social Responsibility Top 10".

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B.  Review by the Management on the Performance of Various Business Operations

(Financial data are shown according to China Accounting Standards for Business Enterprises 
("PRC GAAP"). For segment information, please refer to Note 8 to the audited financial information 
below.)

1.  The Power Generation Business

(1)  Business Review

     The Company is one of the largest independent power producers in the PRC. As at the end of
     2010, the Group managed a total installed capacity of approximately 36,300.3MW. The power 
     generation business of the Group is mainly distributed across the power grids of North China, 
     Gansu, Jiangsu, Zhejiang, Yunnan, Fujian, Guangdong, Chongqing, Jiangxi, Liaoning, Ningxia, 
     and Qinghai.

     In 2010, the PRC's overall economy operated with a good momentum, achieving a year-on-year
     Gross Domestic Product (GDP) growth of 10.3%. Both power generation and power consumption
     nationwide re-climbed at an accelerated rate. According to relevant statistics, during the
     Year, the nationwide installed capacity grew by approximately 10.07% year-on-year. Social 
     power consumption increased by 14.56% over the Previous Year, while nationwide power 
     generation increased by approximately 13.3% over the Previous Year. Utilisation hours of 
     power generation facilities were on the rise as a whole, but prices of coal for power 
     generation increased significantly and remained at high levels. Meanwhile, due to 
     exceptionally serious droughts in the southwestern regions in spring, the profitability of 
     hydropower enterprises has been affected significantly. Under the market conditions of the 
     co-existence of opportunities and challenges, the Company's power generation business has 
     been developing at a stable and fast pace, thereby enabling its profit to maintain 
     significant growth.
 
(i)   Maintaining Safe and Stable Power Production

      During the Year, total power generation of the Group amounted to 178.4781 billion kWh, 
      representing an increase of 25.81% over the Previous Year. Aggregate on-grid power 
      generation amounted to 168.2278 billion kWh, representing an increase of 25.96% over the 
      Previous Year. The increases in power generation and on-grid power generation were mainly
      attributable to an increase in the capacity of operational generating units of the Group,
      safe and stable operation of the generating units and a steadily increasing power demand
      in the service territories. During the Year, the Group added new installed capacity of 
      5,558.5 MW. Consolidated utilisation hours amounted to 4,998 hours, an increase of 91 hours
      year-on-year. No casualties or material damage to the production facilities occurred to the
      Group during the course of power production. The equivalent availability coefficient of the
      operational generating units amounted to 95.31%, representing an increase of 0.55 percentage
      point over the Previous Year.

(ii)  Steady Progress in Energy Conservation and Emissions Reduction

      During the Year, the Company adhered to management by objective, program control, dynamic
      benchmarking and monitoring; enhanced management on energy conservation; focused on economic
      operation of power generation facilities; and intensified technological renovation on energy
      conservation and facilities treatment, thereby enhancing the utilisation efficiency of 
      generating units. During the Year, coal consumption for power supply was 323.59 g/kWh, 
      representing a decrease of approximately 2.92 g/kWh over the Previous Year. Consolidated 
      electricity consumption rate of power plants was 5.82%, representing a decrease of 0.03 
      percentage-point year-on-year. The desulphurization facilities operation rate and the overall
      desulphurisation efficiency rate amounted to 99.20% and 93.61%, respectively. The coal-fired 
      generating units of the Group continued to  achieve a desulphurisation facilities installation
      rate of 100%. The emission rates of sulphur dioxide, nitrogen oxides, smoke ash and waste 
      water decreased by 5.34%, 9.40%, 14.52% and 43.44% year-on-year to 0.420g/kWh, 1.396g/kWh, 
      0.126g/kWh and 75g/ kWh, respectively, which were lower than the national average levels.

(iii) Strengthened Economic Analysis and Enhanced Operational Management Efficiency

      During the Year, the Company was still impacted by unfavourable factors such as soaring coal
      prices lingering at high levels and an inability to implement tariff adjustments. Faced with
      such a continuously tough operating environment, the Company kept abreast of the market trends
      while taking initiatives in planning budgets, strengthening internal management and at the 
      same time creating a favourable external environment, thereby rigorously enhancing production
      and operation: (1) Management accountability has been implemented gradually, and targets of 
      power generation were achieved. Consolidated utilisation hours of generating units amounted 
      to 4,998 hours, an increase of 91 hours year-on-year. (2) Through measurements such as 
      developing economical coal to ensure fuel supply, enhancing coal blended burning and setting 
      up an improvement platform on fuel management indices, fuel costs were effectively controlled.
      (3) Through various measures such as proper cash allocation, distribution of capital according
      to needs, prompt repayment of loans, reduction of capital sedimentation and optimisation of 
      loan structure, capital costs were lowered.

(iv)  Actively Pushed Forward Projects Construction and Increased Green Energy Capacity

      During the Year, seven power projects of the Company have been approved by the State 
      including two coal-fired power generation projects with total approved capacity of 3,320 MW,
      one hydropower project with an approved total capacity of 2,600 MW, and four wind power 
      projects with total approved capacity of 173.5MW. As for nuclear power, the National 
      Development and Reform Commission approved in writing the commencement of preliminary works on 
      Phase 1 of the Liaoning Xudabao Nuclear Power Project, of which 20% equity interests are held 
      by the Company. Details on the approved projects are as follows:

      -- Coal-fired power projects: The Phase 2 project for two 1,000MW generating units at Chaozhou
         Power Generation in Guangdong and the Phase 2 project for two 660MW generating units at 
         Ningde Power Generation in Fujian.

      -- Hydropower project: 2,600MW generating units at the Changheba Hydropower Station Project in 
         Sichuan (in the first quarter of 2011, the 850MW operating unit at Huangjingping Hydropower
         Station in Sichuan was approved).

      -- Wind power projects: The Phase 1 project for 28MW generating units at the Changle Wind Power
         Station in Fujian; the Phase 1 project for 48MW generating units at Fuzhoucheng Wind Power in
         Liaoning; the Phase 2 project for 49.5MW generating units at Manjing Wind Power in Liaoning;
         and the project for 48MW generating units at Zhao'an Meiling Wind Power in Fujian.

      In 2010, a number of major power generation projects of the Company commenced operation one 
      after another, with newly installed capacity amounting to 5,558.5MW:

      -- Coal-fired power projects: Newly installed capacity of 4,940MW, including two 1,000MW 
         generating units at Chaozhou Power Generation Company, one 300MW generating unit at 
         Zhangjiakou Thermal Power Company and four 660MW generating units at Lvsigang Power Company.

      -- Hydropower projects: Newly installed capacity of 474.23MW, including two 100MW hydropower 
         generating units at Wenshan Hydropower Development Company and 274.23MW hydropower generating
         units at Yuneng Group.

      -- Wind power projects: Newly installed capacity of 144.25MW, including 49.5MW generating units
         at Zuoyun Wind Power Company, 48MW generating units at Inner Mongolia Wind Power Company and
         46.75MW generating units at Wulong Wind Power Company.

      As at the end of 2010, the generation capacities of coal-fired power, hydropower and wind power 
      accounted for 88.18%, 10.62% and 1.20% of the Company's installed capacity, respectively. As 
      compared to the Previous Year, the proportion of capacity in clean and renewable energy 
      increased to 11.82%. The Company's power generation structure was further optimised.

(2) Major Financial Indicators and Analysis

(i)   Operating Revenue

      During the Year, revenues of the Group from electricity sales and heat sales accounted for
      approximately 89.22% of the total operating revenue, of which revenue from electricity sales 
      accounted for approximately 88.33% of the total operating revenue.

      During the Year, the Group achieved revenues of approximately RMB53,594 million and RMB540
      million from electricity sales and heat sales, respectively, representing increases of 
      approximately 27.47% and 40.92% over the Previous Year, respectively. In particular, the 
      increase in revenue from electricity sales was mainly due to the increases in on-grid power 
      generation and average tariff of on-grid power. During the Year, the commencements of 
      operation of the Group's generating units in coastal regions optimised the power generation 
      structure of the Group and raised the average on-grid power tariff. The average on-grid power 
      tariff of the Group increased by 1.2% over the Previous Year, and the operating revenue from 
      electricity increased by approximately RMB831 million accordingly. The increase in on-grid 
      power generation resulted in an increase of approximately RMB10,719 million in the Group's 
      revenue.

(ii)  Operating Costs

      During the Year, the power and thermal fuel costs of the Group increased to RMB32,143 million
      comparing with the Previous Year. The increase is mainly attributable to: 1) an increase of 32.192
      billion kWh in on-grid coal-fired power generation over the Previous Year; 2) an increase of 
      RMB25.99/MWh in unit fuel cost over the Previous Year.

      During the Year, depreciation expenses of the Group for the year decreased by approximately
      RMB1,800 million, which was mainly attributed to changes in accounting estimates of fixed assets
      made by the Group in order to enhance the comparability of accounting information among listed 
      companies of the same industry.

(iii) Operating Profit

      During the Year, operating profit from electricity sales and heat sales amounted to approximately
      RMB10,690 million, while the gross profit margin was approximately 19.75%, representing an 
      increase of approximately 30.86% over the Previous Year.
 
2.  The Coal Chemical Business

(1)  The Duolun Coal Chemical Project, developed and constructed by the Group as a controlling interest,
     is located at Duolun County, Xilinguole Pledge, Inner Mongolia. It uses lignite coal from the Inner
     Mongolia Shengli Coal Mine as raw materials; and it applies internationally advanced technologies
     including the technology of vaporising coal ash, the syngas purification technology, the large-scale
     ethanol synthesis technology, the technology to convert methanol to propylene, and the propylene 
     polymerisation technology to produce coal chemical products. The final product of the project is 
     460,000 tonnes/year of polypropylene and other by-products.

     The coal chemical project is under construction and has succeeded in the first trial run at two 
     gasifiers. The successful conduct of critical phases such as the successful operation of the 
     response system of the methanol-to-propylene (MTP) facility in one go and the production of alkene
     with qualified constituents marked a significant breakthrough on the core technologies of the Duolun
     Coal Chemical Project. This has laid a solid foundation for opening up the whole-line process flows 
     and ensuring a stable production of polypropylene products. It is expected that upon its successful
     development and construction, the project will become a new income base for the Group.

(2)  The Keqi Coal-based Natural Gas Project with an annual output of 4 billion cubic meters, developed
     and constructed by the Group with controlling interests, is located in Keshiketeng Qi, Chifeng City,
     the Inner Mongolia Autonomous Region. Upon its completion, the major supply targets of the project 
     are Beijing and cities along the gas transmission pipeline. As a political, cultural and financial
     centre of the PRC, Beijing has a strong demand for clean energy such as natural gas, given the 
     city's higher requirement for air quality. The Company believes that upon completion of the
     Keqi Coal-based Natural Gas Project, it will benefit from the growing demand for clean energy in 
     Beijing and cities along the gas transmission pipeline, thereby increasing the overall 
     profitability of the Company.

     During the Year, the power plants at the Keqi Coal-based Natural Gas Project were completed and
     delivered for operation before the Year end. Other construction works are proceeding at an 
     accelerated speed, with the project aiming to commence operation in 2012.

(3)  The Fuxin Coal-based Natural Gas Project in Liaoning with an annual output of 4 billion cubic meters,
     developed and constructed by the Group with controlling interests, is located in Fuxin City, Liaoning
     Province. The project was approved  and commenced construction in 2010. Upon its completion, the 
     project aims to supply natural gas largely to Shenyang City and nearby cities such as Tieling, 
     Fushun, Benxi and Fuxin in Liaoning Province. Liaoning Province has experienced fast economic growth.
     With the acceleration of urbanisation, the reform in coal-fired boilers and the development of gas 
     buses and industries using natural gas as raw material, the supply gap of natural gas in the above
     cities will grow bigger and bigger. Upon completion of the Fuxin Coal-based Natural Gas Project, the 
     Company will benefit from the growing demand for clean energy in Shenyang and nearby cities which 
     have experienced rapid economic development, thereby increasing the overall profitability of the 
     Company. The Fuxin Coal-based Natural Gas Project is expediting its construction with the target to 
     commence production in 2012.

(4)  The High-Aluminium Pulverised Fuel Ash Project of Inner Mongolia Datang International Renewable 
     Energy Resource Development Company Limited, constructed by the Company with controlling interests,
     proceeded smoothly. During the Year, the project opened up process flows involving the extraction of
     alumina from high-aluminium pulverised fuel ash, providing technical support to the Group's 
     deployment of its recycle economy businesses.
 
3.  The Coal Business

(1)  Business Review

     The Shengli Coal Mine East Unit 2, developed and constructed by the Group, is located in the central
     part of Shengli Coal Mine in Inner Mongolia with a planned construction scale of 60 million tonnes.
     Its coal products will mainly be supplied as raw materials to the Company's coal chemical and 
     coal-based natural gas projects including the Duolun Coal Chemical Project, the Keshiketeng Qi 
     Coal-based Natural Gas Project and the Fuxin Coal-based Natural Gas Project. For such projects, the
     annual production capacity of the Phase 1 project amounted to 10 million tonnes, and the Phase 2 
     project was approved by the National Development and Reform Commission in March 2011 with an annual
     production capacity of 20 million tonnes.

     During the Year, the Company completed the acquisition of 70% equity interests in Inner Mongolia
     Baoli Coal Company Limited, thereby further increasing the self-supply ratio of coal. The Inner 
     Mongolia Baoli Coal Company Limited, located in E'erduosi City, Inner Mongolia, produced 1.92 
     million tonnes of coal products in 2010. Meanwhile, the Company is currently engaged in preliminary
     development works on the Wujianfang Coal Mine, the Kongduigou Coal Mine and the Changtan Coal Mine.
     The successful developments of the above- said coal mine projects will enhance the coal consumption
     self-sufficiency of the Company's power plants.

     During the Year, the Tashan Coal Mine and the Yuzhou Coal Mine, constructed by the Company with 
     holding interests, supplied to the Company with 9.57 million tonnes and 3.92 million tonnes of coal, 
     respectively, thereby assuring stable coal sources for the Company.

(2)  Major Financial Indicators and Analysis

(i)   Operating Revenue

      During the Year, the coal self-sufficiency ratio of the Group was further increased.

      During the Year, operating revenue from the coal business after consolidation elimination amounted 
      to approximately RMB2,823 million, accounting for
 
      4.66% of the total revenue of the Group, representing a decrease of approximately 45.11% over the 
      Previous Year.

(ii)  Operating Costs

      During the Year, operating costs in the coal business amounted to approximately RMB2,694 million, 
      representing a decrease of approximately RMB2,166 million over the Previous Year. The decrease in
      operating costs was mainly due to a decrease in coal sales business of Fuel Company.

(iii) Operating Profit

      During the Year, operating profit from the coal business was approximately RMB129 million, while 
      the gross profit margin was approximately 4.58%, representing a decrease of approximately 54.37% 
      over the Previous Year.

C.  Management's Review on Consolidated Operating Results

1.  Operating Revenue

    During the Year, operating revenues of the Group amounted to approximately RMB60,672 million, 
    representing an increase of approximately 26.55% over the Previous Year, of which the increase in 
    electricity sales amounted to approximately RMB11,551 million. 

2.  Operating Costs

    During the Year, total operating costs of the Group amounted to approximately RMB51,469 million, 
    representing an increase of approximately RMB10,171 million, or approximately 24.63%, over the 
    Previous Year. Among the operating costs, fuel cost accounted for approximately 66.49%, and 
    depreciation cost accounted for approximately 14.34%. Since the standard coal unit price of the
    Company increased by RMB85.54/tonne over the Previous Year, the fuel cost for power generation 
    of the Company increased by RMB4,335 million.
 
3.  Net Finance Costs

    During the Year, finance costs of the Group amounted to RMB5,373 million, representing an 
    increase of approximately RMB1,263 million or 30.72% over the Previous Year. The significant
    increase was mainly due to an increase in interest expenses during the Year caused by an increase
    in borrowings and the ending of capitalisation of interests for newly operated generating units.

4.  Profit before Tax and Net Profit

    During the Year, the Group reported a profit before tax amounting to approximately RMB4,700 
    million, representing an increase of 50.10% over the Previous Year. Net profit attributable to
    equity holders of the Company amounted to approximately RMB2,570 million, representing an increase
    of 67.24% over the Previous Year. The increase in profits of the Group was mainly attributable to 
    the increase in sales revenue.

5.  Financial Position

    As at 31 December 2010, total assets of the Group amounted to approximately RMB212,915 million, 
    representing an increase of approximately RMB28,768 million as compared to the end of 2009. The
    increase in total assets mainly resulted from the implementation of the expansion strategy by 
    the Group which led to a corresponding increase in investments in projects under construction.

    Total liabilities of the Group amounted to approximately RMB174,483 million, representing an 
    increase of approximately RMB23,107 million over the end of 2009. Of the total liabilities, 
    long-term liabilities increased by approximately RMB10,218 million over the end of 2009. The 
    increase in total liabilities was mainly due to an increase in the Group's borrowing level so 
    as to meet the needs of daily operations and infrastructure construction. Equity attributable 
    to equity holders of the Company amounted to approximately RMB30,850 million, representing an
    increase of approximately RMB4,727 million over the end of 2009. Net asset value per share 
    attributable to equity holders of the Company amounted to RMB2.51, representing an increase of
    RMB0.29 per share over the end of 2009.
 
6.  Liquidity

    As at 31 December 2010, the assets-to-liabilities ratio for the Group was approximately 81.95%.
    The net debt-to-equity ratio (i.e. (loans + long-term bonds - cash and cash equivalents)/total
    equity) was approximately 379.72%.

    As at 31 December 2010, the cash and cash equivalents held by the Group amounted to 
    approximately RMB3,443 million, of which deposits equivalent to approximately RMB211 million 
    were foreign currency deposits. During the Year, the Group had no entrusted deposits or overdue
    fixed deposits.

    As at 31 December 2010, short-term loans of the Group amounted to approximately RMB19,375 
    million, bearing annual interest rates ranging from 1.31% to 5.56%. Long-term loans (excluding
    those repayable within 1 year) amounted to approximately RMB109,585 million and long-term loans
    repayable within 1 year amounted to approximately RMB14,470 million. All long-term loans 
    (including those repayable within 1 year) were at annual interest rates ranging from 1.13% to 
    8%, of which loan balances equivalent to approximately RMB1,051 million were loans denominated
    in US dollar, and loan balances equivalent to approximately RMB616 million were loans 
    denominated in HK dollar. The Group constantly pays close attention to foreign exchange market 
    fluctuations and cautiously assesses foreign currency risks.

7.  Welfare Policy

    As at 31 December 2010, the number of staff of the Group totalled 17,307. During the Year, the
    costs of salaries and staff welfare of the Group amounted to RMB2,048 million. The Group adopts
    the basic salary system on the basis of position-points salary distribution. The Group carries
    out evaluation of its subordinated enterprises based on a profit accountability system. The 
    Group is concerned about personal growth and occupational training, and implements a reward 
    mechanism of "unification of training, usage and remuneration". Based on the basic principles 
    of "identifying targets scientifically and providing training depending on actual needs", and 
    led by the strategy of developing talents for a strong corporation, the Group relies on a 
    three-tier management organisational structure and implements an all-staff training scheme for 
    various levels.
 
D.  Outlook for 2011

    2011 is the first year of the "Twelfth Five-year Plan" implemented by the State. It is full
    of opportunities and challenges in both the internal and external environments.

    As far as opportunities are concerned, firstly, the long-term development of the domestic 
    economy remains favourable. As indicated by relevant forecasts, the GDP growth rate is likely 
    to be approximately 9% in 2011, and the growth rate of social power consumption is expected to
    exceed 10%. Secondly, the national growth rate of installed generating units is expected to
    reach approximately 9.5% in 2011, which is slightly lower than the growth rate of social power
    consumption. Utilisation hours of generating units are likely to remain basically stable or 
    undergo a slight increase. Thirdly, the Group has achieved leadership positions in the PRC in 
    various aspects such as reliability of generating units and facilities, indices of energy
    conservation and emissions reduction, and technical skills and qualifications of personnel.
    Owing to its outstanding advantages of having expanding capacity in generating units located 
    along the southeastern coastal region and having large-capacity generating units, the Company
    is in a favourable position amidst the fierce competition in the electricity market. Fourthly, 
    given the successive commencements of operation and developments in the Company's non-power 
    businesses such as coal, railway, port, shipping, petrochemical and recycle economy, 
    achievements of the Company's diversified developments will gradually be seen.

    As far as challenges are concerned, firstly, the impact of the global financial crisis is 
    profound and long-lasting, and the post-financial-crisis era will bring about various risks. 
    Secondly, the current successive implementation of policies regarding upward adjustments of
    the deposit-reserve ratio and increases of interest rates has further tightened the 
    availability of funds for power generation enterprises. Thirdly, there are uncertainties in
    the coal and electricity markets, and fuel coal prices are still expected to rise and to 
    remain at a high level, thus rendering the operating situation severe for power enterprises
    which have coal-fired generating units as their major assets. Fourthly, the pressure on 
    energy conservation and emissions reduction will continuously increase.

    Faced with the above-mentioned complicated and volatile situations, the Company will continue
    to adhere to the strategy of "focusing in the power generation business whilst complementing
    with synergistic diversifications", and will keep on implementing the development strategy of
    "enhancing its coal-fired power, aggressively expanding its hydropower, continuously 
    developing wind power, strategically developing nuclear power, appropriately developing solar
    power, focusing on suitable coal operations, actively and steadily developing coal-to-chemical
    business, speedily developing the high-aluminium pulverised fuel ash integrated use projects,
    and securing a complementary development of railway, port and shipping". It will seize new 
    opportunities, overcome new challenges, achieve new breakthroughs, stride ahead and build up
    new strengths.

1.  Endeavour to be a "Four-feature Enterprise"

    The Company will place emphasis on establishing a new type of enterprise featuring fundamental
    safety, resources conservation, green environment and technology innovation. It will continue
    to further implement a comprehensive accountability management system and a performance 
    appraisal system for all staff, building a "four-feature" enterprise with a focus on 
    fundamental safety.
 
2.  Enhance Profitability

    The Company will further improve the comprehensive budget management system, with the 
    objective of enhancing profits. Focusing on capital flows and emphasising cost controls, and
    through advance analysis and forecast, on-the-spot control and post-incident appraisals, the 
    Company will effectively control and monitor budget execution and promptly discover and 
    rectify any existing deviations in the course of execution. It will increase power generation
    with all efforts and control coal prices by applying various measures, with an aim to enhance
    the profitability of the Company. In 2011, the Company will strive to accomplish a power
    generation of 190 billion kWh and realise an increase in sales revenue of more than 15% 
    year-on-year.

3.  Continuously Adjust and Optimise the Development Structure

    The Company will continue to strengthen its power generation business, excel in its non-power
    businesses and promote synergistic diversifications. In respect of its power generation 
    business, the Company will actively take part in the development of low-carbon power 
    generation, integrated utilisation, distributed energy sources and construction of 
    high-efficiency power plants. In respect of its non-power businesses, it will strive to obtain
    coal resources through all means, and achieve the target of realising continued profits through 
    stabilising coal sources. In particular, it will speed up the promotion and application of the 
    core coal-to-chemical technology, push forward the deployment of the coal-to-chemical business 
    with full efforts, and further expand the room of development for the Company in the regions 
    with resources advantages.
 
4.  Actively Push Forward Capital Operation

    The Company will further leverage its financing platform as a listed company, strengthen the 
    direct financing function and actively pursue acquisitions of good-quality assets, with a view
    to achieving maximum investment returns for the Company.

5.  Continuously Intensify Energy Conservation and Emissions Reduction

    The Company will further enhance the benchmark management of energy consumption, strive to 
    enable more than 20% of the economic indices for generating units to be in leading positions 
    nationwide. The Company will further enhance environmental protection and supervision to 
    realise a normalised management of environmental protection assessments.

6.  Comprehensively Strengthen Risks Prevention and Control

    In 2011, the Company will comprehensively implement the State's "Basic Standards for Enterprise
    Internal Control", as well as its application guidelines, evaluation guidelines and auditing 
    guidelines. According to the principle of integrating "job duties, mechanisms and systems, 
    standards and criteria, operation flows, evaluation and auditing and performance appraisal", 
    the Company will accomplish the top-level design and ensure advancement in good order, so as
    to fully implement the comprehensive accountability management system, the comprehensive budget 
    management system and the comprehensive risk management system.
 
Enhancing Profitability with Six Major Bases

During the period of the "Twelfth Five-year Plan", the Company will gather its strengths to build a 
number of industrial bases with core competitiveness, with a view to strengthening the capabilities
of important regions and enhancing the Company's brand and profitability, and in particular building 
six major profit bases.

Firstly, the Company will build the Western Inner Mongolia Coal-Electricity-Aluminium Profit Base 
with the Tuoketuo as the centre. The Western Inner Mongolia region has rich reserves of quality 
thermal coal. Burnt pulverised fuel ashes contain high alumina content. This region is a key 
development area of the Company with resources advantages. With the construction and operation 
supported by Tuoketuo Power Generation Co. and Renewal Energy Co., a comprehensive 
"coal-fired-ash-alumina" value chain under a recycling economy will be created.

Secondly, the Company will build the Eastern Inner Mongolia Chemical Profit Base with Xiduoke as 
the centre. The Eastern Inner Mongolia region has abundant coal and water resources, and is both a 
major region of the Company for the development of the coal-to-chemical industry and a base for a 
stable supply of raw materials and fuel for the coal-to-chemical industry. The Duolun coal-based 
olefin project has an annual output of 460,000 tonnes of polypropylene, while the Keqi and Fuxin 
coal-based natural gas project has a total annual output of 8 billion cubic meters of natural gas, 
and can generate more profits from further processing by-products to become the Company's new profit 
driver.

Thirdly, the Company will build the Pan-Bohai Co-generation Profit Base with 
Beijing-Tianjin-Hebei-Liaoning as the centre. The Pan-Bohai Region is a region where the Company's 
power and heat energy assets are very densely located. Backed by the Beijing-Tianjin-Tangshan power 
grid and the Liaoning power grid, and making use of the industrial space developed in the Bohai 
region, the Company will leverage the cluster advantage and increase the deployment density for 
effectively enhancing the presence of the Datang Power brand.

Fourthly, the Company will build the Southwestern Hydropower Profit Base with 
Yunnan-Chongqing-Sichuan-Tibet as the centre to aggressively develop hydropower and optimise the 
power structure. The hydropower base in Dadu River Basin, Ganzi, is the Company's recent focus on 
hydropower development. Upon completion of the cascade hydropower project for the Changheba and 
Huangjinping hydropower stations, the installed capacity can reach up to 3,450MW. Meanwhile, the 
Company will develop small hydropower projects to suit local conditions so that a cluster of green 
hydropower industries will be built in the southwestern region.

Fifthly, the Company will build the Southeastern Coastal Coal-Fired Power Profit Base with 
Jiangsu-Zhejiang-Fujian-Guangdong as the centre. The southeastern coast is a favourable location 
in the traditional market, where power demand is robust, tariff levels are high, port facilities are 
good, and efficient and large generation units are centrally located. In this region, the Company 
will focus on the "coal-power-railway-port-based" integrated development to build a profit "aircraft 
carrier" in the southeastern coast.

Sixthly, the Company will build the New Energy Power Generation Profit Base with the "Three Norths" 
and Southeastern Coastal Wind Power as the focus. The Company's important strategic plan is to focus 
on wind power for coordinating new energy development. A northern onshore wind power base will be 
built with the three "Norths" as the centres, namely northern Hebei, western Inner Mongolia, western 
and northern Liaoning and northern Shanxi; with Fujian as the centre, the Company will expand its 
presence to Guangdong, Zhejiang, Shanghai, Jiangsu and Liaoning, and focus on the development and 
construction of large-scale offshore wind power resources. On this basis, depending on market 
conditions and technical requirements, the Company will, by building pilot projects as a 
breakthrough strategy, carry out the development of power generation projects using new energy such 
as solar, tidal and biomass energy in an orderly manner.



Fulfillment of Social Responsibilities

Maintaining Safe Production in a Stable Manner

Endeavouring to Build a Fundamentally Safe Enterprise

The Company consistently adheres to the production safety policy that treats "safety and prevention 
as top priorities complemented with comprehensive maintenance", having set up a long-term production 
safety mechanism with its own characteristics, conducted comprehensive safety supervision as well as 
investigation and control of potential risks, strengthened the training of all staff in safety 
knowledge, created a safe environment and steadily proceeded with the building of a fundamentally 
safe enterprise, thereby laying a solid foundation for sustainable, stable and rapid development of 
the Company.

The Company received positive comments from various sectors of the society upon its successful 
completion of the guaranteed power supply tasks for the Shanghai World Expo, the Guangzhou Asian 
Games and the Asian Paralympic Games in 2010.

During the period of the "Eleventh Five-Year Plan", the average number of non-stop services for 
Datang Power's coal-fired power unit sets fell from 1.12/set/year to 0.32/set/year, a decrease of 
71.4%; and the average equivalent availability coefficient of the units increased from 93.15% to 
95.31%, an increase of 2.16 percentage points.

Safety is Always the Top Priority

The generation, transmission, distribution, supply and utilisation of electricity constitute a safety 
chain. If there is a problem in one part of the chain, it will trigger chain reactions of other parts. 
The special nature of electricity generation, and the close association of electricity generation with 
the society and people's livelihood determine that the production safety of power generation companies 
is extremely important.

The Company always treats production safety as a precondition and a basis for corporate development, 
and is insistently committed to putting safety in the first priority, conducting stringent appraisals, 
and taking strict precautions and protection, with a view to building a fundamentally safe enterprise.

Strengthening Facilities Maintenance

The Company actively implements leadership accountability, technical accountability, supervisory 
accountability and on-site management accountability in production safety. It takes such 
accountabilities as the basis for building a fundamentally safe enterprise. The Company further 
implements a spot inspection and regular maintenance system; continuously improves the standards on 
equipment reliability management; and enhances technological renovation of equipment, technology 
supervision, inspection and maintenance, and operations management in full scale.

In 2010, the Company continued to intensify the management work on spot inspection and regular 
maintenance, carried out performance evaluation on spot inspectors, and put more efforts on the 
training of the professionals, with a view to efficiently enhancing the professional level of spot 
inspectors and improving their capabilities on equipment management and planning. Based on the host 
equipment reliability management, the Company launched an auxiliary equipment reliability information 
management, continuously improved the equipment statistical analysis in multiple dimensions, and 
efficiently pushed forward the maintenance process of equipment conditions. Meanwhile, the Company 
continued to intensify safety evaluation work, carried out the mechanism of equipment inspection and 
maintenance as well as quality tracking, and strengthened whole process management on inspection and 
maintenance of generation units.
 
Building a Safe Environment

The Company has established and effectively implemented a mechanism to investigate and prevent 
potential risks, enhancing safety monitoring of the working environment and supervision of major 
risk sources, proceeding with the "6S" management for production teams and groups, improving safety 
auxiliary facilities, and attaching great importance to labour protection of its staff. Through 
continuously strengthening strict management on each production section and each production factor, 
the Company has effectively prevented and controlled safety-related accidents, and has provided overall 
environment protection for building a fundamentally safe enterprise.

In 2010, the Company further implemented the "6S" management for production teams and groups, 
established standardised work behavior with all efforts, continuously improved site conditions, 
regulated operation management, enhanced the quality of staff, and secured their occupational safety. 
The Company regards supervision and management of major sources of hazards as an important measure to 
prevent and control safety-related accidents. On the basis of scientific assessment and tier-by-tier 
management, the Company has strengthened dynamic management to ensure risks would be under control. The 
Company has prepared a major hazard source monitoring report to enhance the investigation, registration, 
recording, evaluation and monitoring of major hazard sources.

Improving Safety-related Quality

The safety-related quality of staff is essential in establishing a fundamentally safe enterprise. The 
Company consistently puts safety education and training at the centre of its strategy for safe 
production. It has created an atmosphere where "everyone is conscious of safety, everyone's purpose is 
safety, and everyone ensures safety" by leading the staff to hold the belief that "potential hazards 
can be eliminated, risks can be prevented, errors should be controlled, and accidents can be prevented".

In 2010, the Company conducted a variety of safety-related trainings for various levels of staff, and 
particularly strengthened trainings for key departments and key positions. It aligned safety-related 
training results to performance management to achieve an integration of training, evaluations, 
appointments and compensation.

The Company organised experts to summarise their years of field experience and spent two years to 
compile the "Casualty Prevention and Typical Cases", which illustrates eleven categories of casualty 
hazards common in production life and typical cases. This book reproduces accident scenes, analyses 
accident reasons, proposes prevention measures, and lists the knowledge and relevant systems and 
regulations for preventing various kinds of casualty. The publication of this book plays an active role 
in enhancing the safety-related quality of the Company's internal staff, and also provides safety 
management reference for the coal mine, chemical, metallurgical and other non-power industries.

Continuously Pushing Forward Green Operation

Continuously Intensifying Energy Conservation and Emissions Reduction

The Company strictly implements the State's energy conservation and emissions reduction policies, 
strengthens the adjustment of assets structure, actively uses energy conservation and environmental 
protection technologies, effectively conducts renovation on energy conservation and emissions 
reduction, and continuously improves the level of information-based supervision and management, thereby 
significantly improving the comprehensive energy efficiency level and reducing pollutant emission 
indicators. Among domestic large-scale power enterprises, the Company took the lead in achieving a 
desulphurisation facilities installation rate of 100%.

During the "Eleventh Five-Year Plan" period, the Company's coal consumption for power supply decreased 
by 27.03 g/kWh; its consolidated electricity consumption rate of power plants decreased by 0.32 
percentage point; and the emission rates of sulphur dioxide, nitrogen oxides, smoke ash and waste water 
decreased by 93.2%, 57.6%, 79.4% and 78.2%, respectively.

Continuously Optimising the Power Generation Structure

The Company continues to optimise the development of coal-fired power; aggressively expands its 
hydropower; continuously develops wind power; strategically pursues nuclear power; and continuously 
increases the Company's core competitiveness, with a view to creating a better path for the 
sustainable development of the Company.
 
Please visit the link below for more details:
http://www.prnasia.com/sa/attachment/2011/04/20110428451895.29.pdf

The structure of power resources was being continuously optimised during the period of the "Eleventh 
Five-Year Plan". The percentage of the Company's coal-fired power decreased from 99.49% to 88.18%; 
the percentage of hydropower increased from 0.51% to 10.62%; and the percentage of wind power 
increased from 0% to 1.20%. Efficiency of generation units continued to improve. The percentage of 
coal-fired power units with a capacity of more than 600 MW increased from 50.95% to 66.73%, an 
increase of 15.78 percentage points; and the capacity of thermal power cogeneration units increased 
from 1,790 MW to 4,860 MW, an increase of 1.72 times. Meanwhile, unit coal consumption decreased from 
350.62 g/kWh to 323.59 g/kWh, a decrease of 7.70%.

Innovating Technologies for Energy Conservation

The Company further implements the concept of energy conservation, strengthens the whole-process 
management of coal consumption, and carries out energy-saving technological renovation and equipment 
management to facilitate the smooth progress in energy conservation and emissions reduction.
 
The Company applies coal consumption indices at each power plant and for each generation unit. It 
benchmarks the energy efficiency indices of generation units against the advanced indices of similar 
generation units, enhances dynamic tracking, conducts economic evaluations, and optimises the power 
generation structure to tap the potential of energy saving.

The Company adheres to integrating self-innovation capability and corporate development strategy, 
and focuses on training a professional technology team as well as establishing key laboratories of 
metals, thermal engineering, high voltage, relay protection and chemical. The Company has successively 
conducted studies on coal chemical, coal-based natural gas, desulfurization of coal-fired power 
plants, denitrification, air cooling, dry type slag removal, sewage treatment and other high 
technologies.

In 2010, the Company applied for nine patents in total, of which there were eight invention patents 
and one new type of applicable patent. The Company won both second and third prizes from Chinese 
Power Science and Technology, and 35 management innovation prizes for national power enterprises and 
for enterprises in Beijing City.
 


Human Resources Overview
 
The Company believes in a scientific view of talents which emphasises "people are the prime resources" 
and "everyone has talent and can be successful". Led by the strategy of being a strong corporation with 
talents, the Company has firmly established the concept in talents that "Datang Power is a platform on 
which staff can showcase their sense of responsibility and talents". It fully adheres to its motto of 
"respect labour, knowledge and talents" in allocating man-power. While continuing to enhance its 
organisational structure, the Company has strengthened innovation in the management mechanism and 
enhanced the allocation of human resources. It has also organised large-scale staff training for 
various levels and of different types, continuously energising the talent team. The Company has strove 
to align individual growth of staff with the growth of the Company by providing staff with sufficient 
career development opportunities and sharing developmental achievements of the Company with them. It 
provided organisational security and talent support for the in-depth implementation of the Company's 
strategy of "focusing on pursuing the power generation business as its core development whilst 
complementing with synergistic diversifications".

A Sound Training System

The Company placed high emphasis on employee development. It continues to strengthen training and 
reinforce training for maintaining the skills of talents while expanding the channels for the 
growth of talents so as to provide training support to the healthy development of employees' career. 
In light of the growth aspirations of employees, the Company undertook various tasks such as 
conducting training at various levels, employee skills assessments, professional/technical 
qualifications evaluation and "112 Talent Appraisal". The Company persisted in combining learning 
and practice and combining nurturing and deployment to promote the all-round development of talents.

In 2010, the Company provided training for its staff with a total enrollment of 187,271 man-times, 
covering 100% of the employees. Various units of the Group attained a total of 1,061,515 training 
hours with training fees invested amounting to RMB31.35 million. During the Year, a total of 1,564 
employees of the Company passed professional and technical qualification assessments, and 31 
employees obtained professional and technical qualifications from national examinations. A total of 
2,528 employees of the Group passed occupational skills assessments, of which 665 employees were 
qualified as senior technicians and 110 employees were qualified as technicians.
 
During the Year, the Company launched 17 management systems including the "Management Measures on 
Incentives and Punishments for Employees", the "Management Measures on Operation Staff Planning" and 
the "Management Measures on Education and Training Budgets", thereby further enhancing the human 
resources management mechanism. It also launched the "Guiding Opinions on Further Expanding the 
Channels for the Growth of Talents" and implemented a "chief" system in which a team comprising chief 
officers from professional technical and production operation staff was actively built.

The Company organised and set out a "Twelfth Five-Year Plan" for its human resources, in which the 
human resources demand and supply of the Company for the coming five years were rationally forecasted 
and the corresponding safeguarding measures and major safeguarding work were formulated, with an aim 
to offer strong and effective human resources support for the achievement of the Company's middle and 
long-term development strategic targets.

Incentive Mechanism

The Company adopted various incentive mechanisms to retain and encourage talents. It has studied and 
formulated allowance policies such as the nuclear power industry allowance, the remote and poverty 
regions allowance and the chemical industry allowance, and adopted differential remuneration policies 
with an aim to attract professional technical talents in nuclear power, stabilise the teams working 
in remote and poverty regions and meet the demands for talents in the coal chemical industry.

Safeguarding the Fundamental Interests of Employees

The Company strictly complied with the "Labour Law", the "Labour Contract Law" and the "Law on the 
Protection of Women's Rights and Interests" and protected the legitimate interests of employees 
according to the law. The ratio of entering into labour contracts was 100% and the collective 
contract coverage was 100%. The Company also continued to implement the paid leave system, fulfilling 
the requirement of caring for the physical and mental health of employees. The Company regularly 
organised health checks for all employees and created health files, with a focus on checking on 
employees engaged in special tasks, and offered guiding advice to employees on their health conditions 
so as to continuously improve the livelihood of employees.

Staff Training in 2010


Training programmes                                               4,005
Percentage of staff trained                                        100%
Training enrollment (man-times)                                 187,271
Among which: Corporate management
              and professional technicians                       40,727
             Production technicians                             127,106
             Others                                              19,438


Major Awards and Titles of Outstanding Individuals in 2010


Title of Outstanding
Individual:                                              Granting Unit:

National                           1        Ministry of Human Resources
Technical Expert                                    and Social Security
-----------------------------------------------------------------------
New Star of Power                  1          China Electricity Council
Education and
Training Special Award
-----------------------------------------------------------------------
Technical Expert in the            7          China Electricity Council
Power Industry
-----------------------------------------------------------------------
Outstanding Technical              3          China Electricity Council
Expert in the Power Industry
-----------------------------------------------------------------------
"112 Talent" of the              719           China Datang Corporation
Corporation
-----------------------------------------------------------------------
Top Twenty Outstanding             4           China Datang Corporation
Talents of the Corporation
-----------------------------------------------------------------------
Technical Expert of the           25           China Datang Corporation
Corporation
-----------------------------------------------------------------------
Outstanding Technical             40           China Datang Corporation
Expert of the Corporation
-----------------------------------------------------------------------


Certification and Evaluation of Professional and Technical Qualifications of the Staff


With professional qualifications                           1,564 people 
With operation qualifications                              1,176 people 
With technical qualifications                              2,528 people
 

Board, Supervisory Committee and Senior Management
 
Members of the Board

Chairman and Non-executive Director

Liu Shunda

Aged 56, a member of the Chinese Communist Party, is a professor grade senior engineer with 
post-graduate qualifications. Mr. Liu has served as Deputy Head of the General Services 
Department of the Electric Power Division of the Ministry of Energy; Deputy Director of the 
Office of the Minister of Electricity; Party Committee Member, Assistant to the Chief and 
Deputy Chief (Deputy General Manager) of the Electric Power Bureau (Power Company) of Hunan 
Province; Party Committee Member and Deputy Chief (Deputy General Manager) of the East China 
Power Administration Bureau (Power Corporation); Party Secretary and Chief (Chairman cum 
General Manager) of the Electric Power Bureau (Power Company Limited) of Fujian Province; 
and Party Committee Member and Deputy General Manager of China Datang Corporation. Mr. Liu 
is currently Chairman and Party Secretary of China Datang Corporation. Mr. Liu has long been 
engaged in electricity production, the management of production and technology, 
administration management and enterprise operation and management, and has extensive work 
experience.

Vice Chairman and Executive Director

Cao Jingshan

Aged 48, graduated from Dalian University of Technology major in technical economics and 
management. He holds a doctorate degree and is a senior economist. Mr. Cao commenced his 
career in 1981 in Yuanbaoshan Power Plant and was successively Assistant to Plant Manager, 
Chairman of the Labour Union, Deputy Plant Manager and Plant Manager of Yuanbaoshan Power 
Plant. From January 2003, he became Deputy Head of the President's Office (Person-in-Charge), 
and has been the Head of the President's Office cum Head of the International Cooperation 
Department of China Datang Corporation since January 2003. Starting from April 2008, Mr. Cao 
has been the President of the Company, and he has been the Executive Director and Vice 
Chairman of the Company since 30 May 2008. From September 2010, he has been a member of the 
Party Committee of China Datang Corporation. Mr. Cao has long been engaged in electricity 
production, technical and operation management, with extensive knowledge and practical 
experience in electricity generation and operation management.
 
Non-executive Director

Hu Shengmu

Aged 51, university graduate, is a senior accountant. He is currently the Party Commissioner 
and Chief Financial Controller of China Datang Corporation. Mr. Hu joined North China Power 
Corporation as he worked in Beijing Power Supply Bureau in 1981. He had been the Deputy Head 
and the Deputy Manager of the Finance Department of the North China Power Administration 
Bureau (NCPGC), the Chief Accountant (Financial Manager) of the Company and the Chief 
Accountant of NCPGC. Mr. Hu was appointed Chief Accountant of China Datang Corporation in 
January 2003. Mr. Hu has long been involved in financial management of power system. He is 
knowledgeable in financial management and has extensive experience in financial practices.
 
Executive Director

Zhou Gang

Aged 47, graduated from East China Institute of Water Conservancy (currently known as Hehai 
University) with master degree of technology and master of business administration, is a 
senior engineer. He  is currently Deputy General Manager of the Company and Secretary to the 
Board. Mr. Zhou started his career in 1985 in Fu Chun Jiang Hydropower Plant of East China 
Electricity Administrative Bureau. Mr. Zhou later worked for China National Water Resources 
& Electric Power Materials & Equipment Corporation as Deputy Manager of the Information 
Department, Deputy Director and then Director of the General Manager's Office, Deputy General 
Engineer and Deputy General Manager; Deputy General Manager of China National Water Resources 
& Electric Power Materials & Equipment Co., Ltd. and General Manager of its Shanghai company 
as well as Deputy Director of the International Cooperation Division of the General Manager's 
Office of China Datang Corporation. Mr. Zhou has become Vice President of the Company since 
June 2007. Mr. Zhou has extensive experience in international cooperation, power resources 
management and power generation enterprise operation and management.
 
Non-executive Directors

Fang Qinghai

Aged 57, post-graduate, is a senior engineer. He is currently the Head of the Planning, 
Investment and Financing Department of China Datang Corporation. Mr. Fang joined Anshan Power 
Plant in 1974 and since then took up various positions including Head of the Boiler Office of 
Anshan Power Plant, Director of the Fund Raising Office of Northeast Power Administration Bureau, 
Deputy Head of the Integrated Planning Department, Deputy Head and Head of the Development and 
Planning Department of the State Power Corporation (Northeast Company), Head of the Power 
Exchange Centre of Northeast China Power Grid, Deputy Chief Engineer and Head of the Development 
and Planning Department of Northeast China Power Grid Company Ltd. He became Deputy Chief of the 
Development and Planning Department of China Datang Corporation in April 2005, and has become 
Head of the Planning, Investment and Financing Department of China Datang Corporation since 
November 2006. Mr. Fang has been involved in the power system for many years and is well 
experienced in power generation and operation.

Liu Haixia

Aged 50, graduated from North China Power College majoring in power plant thermal energy. He 
subsequently pursued postgraduate studies in Business Administration in the Renmin University of 
China. He is a senior engineer and Vice President of Beijing Energy Investment Holding Company 
Limited. Mr. Liu joined Beijing Electric Power Company in 1983 and since then took up positions 
of Technician, Engineer and Assistant to Manager and Deputy Manager. He has been Assistant to 
President of Beijing International Power Development and Investment Company since 1998. He has 
been Assistant to President of Beijing Energy Investment (Group) Company Limited since December 
2004. He has been Vice President of Beijing Energy Investment (Group) Company Limited since May 
2009. With his long-standing involvement in corporate management and planning management of power 
companies, Mr. Liu has acquired extensive experience in corporate management and industrial 
planning and investment.

Guan Tiangang

Aged 44, graduated from North China Power College majoring in thermal dynamics and possesses a 
master degree in Finance from the Renmin University of China. She is a senior engineer and 
currently the Chief Engineer of Beijing Energy Investment (Group) Company Limited. She started 
her career in 1990, and had worked as a teacher in Shijingshan Thermal Power Plant Education 
Centre and as Project Manager of the Investment Department of Beijing International Power 
Development and Investment Company. She has become the Deputy Manager of the Power Investment 
and Management Department of Beijing International Power Development and Investment Company and 
Manager of the Power Generation and Operation Department of Beijing International Power 
Development and Investment Company. She has become the Manager of the Power Generation and 
Operation Department of Beijing Energy Investment (Group) Company since December 2004. Since 
January 2007, she has become the Vice President and the Secretary to the Board of Directors of 
Beijing Jingneng International Energy Company Limited. She has been the Chief Engineer of 
Beijing Energy Investment (Group) Company Limited since May 2009. Ms. Guan has long been engaged 
in the work of power investment operation, and has extensive experience in power investment and 
finance planning and management.
 
Su Tiegang

Aged 63, university graduate, is a senior engineer. He started his career in 1968 and had worked 
in the County Commission of Zefu, Qinghai Province, the Provincial Construction Commission of 
Qinghai Province and Qinghai No. 3 Construction Engineering Company. Mr. Su became Head of the 
Raw Materials and Projects Division of Hebei Construction Investment Company since October 1989. 
Since December 1990, he served in Hebei Provincial Planning Committee as Head of the Investment 
Department. He has become Vice President of Hebei Construction Investment Company since October 
1993. He has become Consultant of Hebei Construction & Investment Group Co., Ltd. since 2010. With 
his long-standing involvement in corporate management and planning management, Mr. Su is well 
experienced in corporate management and industrial planning and investment.

Ye Yonghui

Aged 59, is presently the Deputy Chief Economist of Hebei Construction & Investment Group Co., Ltd. 
Mr. Ye started his career in 1969 and joined the Energy Branch of Hebei Construction Investment 
Company in 1990, holding positions such as Administrative Officer, Deputy Manager and Manager of 
the Jibei Branch. From September 1999 to January 2004, he was the Manager of the Energy Branch of 
Hebei Construction Investment Company. From January 2004 to March 2006, he was the Manager of the 
Energy Business Department I of Hebei Construction Investment Company. From March 2006 to March 2007, 
he served as Deputy Chief Economist and Manager of the Energy Business Department I of Hebei 
Construction Investment Company From March 2007 to date, he was the Deputy Chief Economist of Hebei 
Construction & Investment Group Co., Ltd. With his long-standing involvement in corporate management 
and planning management, Mr. Ye has acquired extensive experience in corporate management and 
industrial planning and investment.
 
Li Gengsheng

Aged 51, a holder of MBA, graduated from Northeast Power  College with  a bachelor's degree in 
thermal dynamic and from China Europe International Business School with a postgraduate MBA degree. 
Mr. Li is a professor grade senior engineer and he is currently the General Manager of Tianjin Jinneng 
Investment Company. Mr. Li joined Hebei Electric Construction Company in 1983, and subsequently worked 
as Deputy Head of the Thermal Control Office of Tianjin Power Scientific Institute, Deputy Manager of 
Tianjin Power Infrastructure Subcontracting Company, Deputy General Manager of Huaneng Yangliuqing 
Thermal Power Co., Ltd., Deputy General Manager of Tianjin Jinneng Investment Company, and has been 
General Manager of Tianjin Jinneng Investment Company since 2007. Mr. Li has been engaged in power 
corporate management and corporate investment for a long time, and has rich experience in corporate 
management and investment.

 
Independent Non-executive Directors

Li Yanmeng

Aged 66, graduated from the Wuhan University of Hydraulic and  Electric Engineering with a major in 
power plants and power systems, is a senior engineer. Mr. Li previously held various positions at 
Shandong Power Construction Group, including Deputy Secretary to the Youth League Committee of the 
First Project Office, Head of the Publicity Section, Deputy Party Secretary, and Deputy Manager, 
Manager and Party Secretary of the Second Engineering Company. He was Plant Manager and Party 
Secretary of Shandong Huangtai Power Plant, and then Chief of Shandong Electric Power Industry Bureau. 
Since 1994, he has held various positions, including Deputy Director of the Division of Construction 
Coordination, at the Ministry of Electric Power Industry; Deputy Director of the Division of Key 
Constructions, Deputy Director of the Division of Investments and Director of the Division of 
Development of Primary Industries (Director of the Office of the Working Group on National Power 
System Reform) of the State Planning Commission. From December 2002 to December 2004, he served as 
Deputy General Manager and Party Member of State Grid Corporation. Mr Li has long been engaged in 
production, management and construction in the power industry, with extensive experience in 
electricity production, management and construction. Mr. Li is currently the External Director of 
China National Coal Group Corporation and the Non-executive Director of China Coal Energy Company 
Limited and Independent Director of Dongfang Electric Co., Ltd.
 
Zhao Zunlian

Aged 65, a professor grade senior engineer and a master degree holder in engineering, is a doctoral 
supervisor. Mr. Zhao graduated from the Wuhan Institute of Hydraulic and Electric Engineering in 1969,
and served as Dispatching Deputy Head, Deputy Chief and Chief of Central China Power Grid from 1981; 
Chief Engineer of Central China Power Corporation in 1995; Director of State Power Dispatching Center 
in 1999; Chief Engineer of State Grid Corporation of China in 2005; and Consultant of State Grid 
Corporation of China in 2006. He has long been engaged in production and management of the power 
industry, with extensive experience in power generation and management. Mr. Zhao is currently the 
Independent Director of Hezong Science & Technology Co., Ltd.
 
Li Hengyuan

Aged 68, graduated from Chengdu University of Technology, majoring in Analytical Chemistry under the 
School of Mathematics, Physics and Chemistry. He is a senior engineer and currently Deputy 
Secretary-general of All-China Environment Federation. Mr. Li participated in the work of Mining and 
Metallurgical Research Institute under Chinese Academy of Sciences in 1965. He took the office of 
Director of Environmental Protection Bureau of Zigong City, Sichuan Province and then the Chief 
Director of the Laws and Regulations Department in the State Environmental Protection Administration. 
Mr. Li has become a part-time professor and guest professor of Jilin University and a part-time 
professor of Beijing Normal University since 1994. He has been Deputy Secretary-general of All-China 
Environment Federation since 2004. Mr. Li has long been engaged in environmental protection studies 
including environment capacity and pollution prevention. He has extensive academic knowledge and years 
of practical experience in environmental protection. He, through his research results, has won the 
National Scientific and Technological Progress Award (Second Class), the Ministerial and Provincial 
Scientific and Technological Progress Award (Second Class) and the Ministerial and Provincial 
Scientific and Technological Progress Award (Third Class), and has presented a considerable number 
of academic papers at international academic conferences and in national academic journals. Mr. Li 
has also participated in drafting various laws, regulations and codes in relation to environmental 
protection.
 
Zhao Jie

Aged 55, with a bachelor's degree from Tsinghua University, is currently Deputy General Manager of 
China Power Engineering Consulting Group Corporation.  Ms. Zhao joined the North China Electric Power 
Design Institute after graduating with a bachelor's degree from the Department of Electrical 
Engineering of Tsinghua University Branch Campus in 1983, and has previously served as Deputy Head, 
Deputy Chief Design Engineer, Deputy Director, Project Manager, Deputy Chief Engineer and Deputy Dean. 
Ms. Zhao acts as Deputy Dean of the Electric Power Planning and Design Institute in 1998; General 
Manager of China Power Engineering Consulting Corporation in 1999; and Deputy General Manager of 
China Power Engineering Consulting Group Corporation in 2003. She has long been engaged in electric 
power design and planning, with extensive experience in electric power design and planning.
 
Jiang Guohua

Aged 40, graduated with a doctorate in accountancy, is currently Associate Professor of 
Accountancy of the Guanghua Institute of Management at Beijing University, as well as a doctoral 
supervisor. After Mr. Jiang received a bachelor's degree in economics from Beijing University in 1995, 
he subsequently received a master's degree in accountancy from the Hong Kong University of Science and 
Technology, and a doctorate in accountancy from the Haas School of Business, University of California 
in Berkeley. He has long been engaged in theoretical and applied researches in the field of 
Accountancy, and analysis of issues regarding investor protection, corporate governance and the 
regulations of the stock market. Mr. Jiang is a member of a nationwide project of the Ministry of 
Finance for the training of senior accounting talents.
 
Members of the Supervisory Committee

Qiao Xinyi

Aged 58, graduated from North China Power Institute majoring in thermal power equipment. He is 
university educated and a Senior Economist. He is currently the Head of the Disciplinary Division 
and Chairman of the  Staff Union of  the Company. Mr. Qiao joined North China Power Corporation in 
1969. He worked successively as Head of the Cadre Office, Assistant to Manager and Deputy Manager 
of the Personnel Department of North China Power Corporation, and Party Secretary and Deputy Chief 
at the Qinhuangdao Electric Power Bureau. He has been Deputy Chief Political Engineer cum Head of 
the Corporate Culture Department, Director of the Work Assignment Committee, Chairman of the Staff 
Union, and Head of the Disciplinary Division of the Company since February 2000. He has become 
Chairman of the Supervisory Committee of the Company since May 2009. Mr. Qiao has long been engaged 
in the management of power generation companies and has extensive experience in human resources 
management and corporate management in power generation companies.

Zhang Xiaoxu

Aged 48, university graduate. He graduated from the Central Communist Party College majoring in 
economics management and graduated from Liaoning Power University with specialisation in industrial 
accounting. He is a senior accountant and is presently Manager of Financial Department of Tianjin 
Jinneng Investment Company. Mr. Zhang began his career with First Construction Company of Fushun 
City, Liaoning Province in 1982. He served as Accounting Officer in First Construction Company of 
Fushun City in Liaoning Province and was Accounting Officer and Chief Accountant of Liaoning Power 
Plant; and Deputy Head and Head of Finance Division, Deputy Chief Accountant, Chief Accountant at 
Liaoning Nenggang Power Generation Co., Ltd. He was Deputy Manager and Manager of Financial 
Department of Tianjin Jinneng Investment. Mr. Zhang has long been engaged in financial management 
and has extensive practical work experience.

Fu Guoqiang

Aged 48, university graduate, is a senior accountant, CPA. Mr. Fu is the Head of the Finance and 
Assets Management Department of China Datang Corporation. He was the Head of the Finance and 
Assets Management Department of Hebei Power Company, Manager of the Finance Department of NCPGC. 
Mr. Fu has been the Head of the Finance and Assets Management Department of China Datang 
Corporation since December 2003. Mr. Fu has long been engaged in finance management in power system 
and has extensive practical experience in operation and management.
 
Guan Zhenquan

Aged 47, graduated from University of  Fuzhou majoring in power system. He is university educated 
and a Senior Economist. He is currently Deputy Director of the Human Resources Department of the 
Company. Mr. Guan joined North China Power Corporation in 1988. He served successively as Deputy 
Director of the Personnel and Education Department of Beijing General Power Equipment Plant, 
Deputy Head of the Administrative Office of Leading Cadres, and Head of the Labour Administrative 
Office of the Personnel Department at North China Power Corporation; and Deputy Party Secretary 
cum Secretary of the Disciplinary Committee as well as Chairman of the Staff Union at Tianjin 
Datang International Panshan Power Generation Company Limited. He has served as Deputy Head, 
Director and Deputy Director of the Human Resources Department of the Company since March 2002. 
He has become member of the Supervisory Committee of the Company since May 2009. Mr. Guan is 
familiar with the development and management of human resources in power generation companies and 
has extensive experience in human resources management in power generation companies.


Secretary to the Board

Zhou Gang
Aged 47, an Executive Director and Vice President of the Company.
 
 
Senior Management

An Hongguang

Aged 52, graduated from Wuhan University majoring in Administration Science and Engineering with 
a master degree. He is a senior engineer and currently the Vice President of the Company. Mr. An 
joined North China Power Corporation in 1982 and since then held various positions including 
Deputy Head of the Chemical Workshop of Xia Hua Yuan Power Plant, Deputy Head and Head of the 
Chemical Workshop of Dou He Power Plant, Division Chief of the Biotechnology Unit of Dou He Power 
Plant, Assistant to Director of Tangshan General Power Plant, Assistant to Director of Dou He Power 
Plant, Deputy Manager of the Production Department of the Company and Director of Zhangjiakou Power 
Plant. From June 2005 to December 2005, he served as Assistant to President of the Company. He has 
become Vice President of the Company since December 2005. Mr. An has more than 20 years' experience 
in the area of power systems and has been long engaged in power plant production and administration 
management. He is well experienced in power generation and operation, with specific expertise in 
production safety management of power plants.

Qin Jianming

Aged 48, graduated from North China Electric Power University majoring in technical economics. He 
has post graduate qualification and is a senior engineer. He is currently a Vice President of the 
Company. Mr.  Qin commenced his career in 1984 with Ministry of Water Resources and Power and had 
been successively person-in-charge of the Office of the Planning Division of the Power Department, 
Head of the General Office of Project Construction Bureau of the State Power Corporation, Head of 
the Thermal Power Construction Management Office of the Thermal Power Construction Department, 
Head of  the General Management Office of Power Construction Department and Deputy Director of the 
Construction Management Department of China Datang Corporation. Mr. Qin has been a Vice President of the Company from June 2007 and he has extensive experience in power project construction and 
management.
 
Liu Lizhi

Aged 45, graduated from Northeast Power Institute majoring in power system and engineering 
automation. He is a Senior Economist and  Senior Engineer with graduate school education. He is 
currently the Deputy General Manager of the Company. In July 1994, he was Deputy Chief of the 
Dynamics and Economics Research Office at the Beijing Power Scientific Research Institute. He has 
been working at the Company since September 1999 and has successively held the positions of 
Manager of the Planning and Development Department and Manager of the Development and Planning 
Department of the Company. He served as General Manager of Hebei Datang International Huaze 
Hydropower Development Company Limited; Director of the Preparation Division of Hebei Yuzhou 
Energy Multiple Development Company Limited; General Manager of Datang International Chemical 
Technology Research Institute Company Limited; and then Secretary to the Communist Party 
Committee cum General Manager of Inner Mongolia Branch of the Company. He has been Chief Economist 
of the Company since December 2005, and Deputy General Manager of the Company since March 2009. Mr. 
Liu is familiar with power system project management, investment and financing management. He has 
extensive experience in capital operation and corporate management.
 
Wang Zhenbiao

Aged 47, graduated from North China Power Institute majoring in thermal dynamics. He is a Senior 
Engineer with graduate school education. He is currently the Deputy General Manager of the Company. 
Mr. Wang joined Beijing Power Construction Company in 1984.  He successively held the positions of 
Deputy Chief and Engineer Director of the Production and Technology Department of North China Power 
Corporation, and then Chief Engineer of Inner Mongolia Datang International Tuoketuo Power 
Generation Company Limited. He was Deputy Manager and Manager of the Engineering and Construction 
Department of the Company since February 2001, and then served as Deputy Chief Engineer of the 
Company. He has been Chief Engineer of the Company since September 2007, and Deputy General Manager 
of the Company since March 2009. Mr. Wang has extensive working experience and is familiar with the 
management of power system infrastructure construction as well as the management of production and 
technology.

Wang Xianzhou

Aged 57, graduated from Beijing Broadcast and Television University majoring in industrial 
statistics. He is a senior accountant and the Chief Financial Officer of the Company. Mr. Wang 
joined North China Power Corporation in 1970 and had held various positions including Head of the 
Financial Department of Xia Hua Yuan Power Plant and Deputy Chief Accountant and Head of the 
Financial Division of Zhang Jia Kou Power Plant. Since 1995, Mr. Wang had held various positions 
including Deputy Financial Manager and Financial Manager of NCPGC, Financial Manager and Chief 
Accountant of the Company. He has been Chief Financial Officer of the Company since August 2000. 
Mr. Wang has acquired extensive experience in the financial management of power companies from his 
longstanding focus in this area.

 
Management of Investor Relations


The philosophy of Datang Power's investor relations practice hinges on integrity as the basis and 
communication as the means. In order to maintain smooth communication with investors, the Company 
highly values investor relations work. The Chairman, General Manager and other senior executives 
personally attend results announcement conferences, roadshows, reverse roadshows and various 
investment forums. A special office has been set up and staff have been assigned to be responsible 
for the management of investor relations work, and various channels have been set up to enable 
investors to establish smooth contact with the Company.

Communicate Actively with the Market

During 2010, the Company conducted active and sincere communication with investors at large and 
analysts by various channels including results presentation, domestic and overseas roadshows, 
reverse roadshows, investor forums, company visits and telephone conferences as well as through 
answering enquiry phone calls and replying to emails.

During the Year, the Company has communicated with analysts and fund managers with over 1,000 
person-times. In particular, the Company met analysts and fund managers 382 person-times through 
results presentations and domestic and overseas roadshows; met analysts and fund managers 40 
person-times at reverse roadshows; met analysts and fund managers 260 person-times at investor 
forums; and met analysts and fund managers 386 person-times through company visits and telephone 
conferences.


Major Investor Relations Activities Conducted in 2010:

           Information on                                                Being a         No. of
           Investor Relations                                         Speaker at     One-on-one         No. of
Month      Activities                                             the Conference        Meeting     People Met

January    Deutsche Bank Access China Conference                              No             13             27
           UBS 10th Greater China Conference                                  No             14             35
March      Morgan Stanley China Industry Investment Summit                    No              7             16
April      Annual Results Presentation                                       Yes             --             60
           Annual Results Telephone Conference                               Yes             --             36
           Annual Results Domestic Roadshows                                  No             11             46
May        Annual Results Overseas Roadshows                                  No             24             53
           CLSA China Forum                                                   No             13             27
June       JP Morgan China Conference                                         No             15             35
           UBS A-share Conference 2010                                        No              7             23
August     Interim Results Presentation                                      Yes             --             78
           Interim Results Reverse Roadshows                                 Yes             --             40
September  Interim Results Hong Kong and Singapore Roadshows                  No             15             23
October    Third Quarterly Results Telephone Conference                      Yes             --             86
           BNP China Economic Forum                                           No             11             25
November   Bank of America Merrill Lynch China Investment Summit              No             15             38
December   Guosen Securities Annual Strategy Conference                      Yes              2             16
           Haitong Securities Annual Strategic Conference                    Yes              2             18
 

The Company has also paid high regard to individual investors. Through enhancing the management 
of investor hotlines, Datang Power was able to effectively communicate with individual investors 
and guide them to understand the Company's disclosed information accurately. As such, Individual 
investor's confidence in investing in the Company was raised.

Improving the Work System

In 2010, the Company has actively commenced the establishment of the investor relations work 
system and streamlined the process. A series of work systems, detailed rules and regulations 
such as the "Datang Power Investor Relations Management System" were developed. The core work 
content such as results presentations, roadshows and reverse roadshows, investor meetings, 
replies to investors, etc was elaborated and the work process was streamlined.
 
Outlook for 2011 Investor Relations Work

In 2011, Datang Power will continue to implement the strategy which aims to "focus in power 
generation and pursue synergistic diversifications", developing itself into a company with an 
operation-cum-holding orientation, an integrated energy company that enjoys domestic leadership 
and international reputation having strong development capabilities, profitability and 
competitiveness.

To achieve this objective, Datang Power will further enhance the quality of its work on investor 
relations, understand the shortcomings from past experience, carry out a top-rate benchmarking 
exercise, draw on the appropriate experience of others, make up for each other's deficiencies 
and strive to make progress. It will fully ensure that information disclosure is made in a timely, 
accurate and comprehensive manner; communicate and interact with the capital market smoothly and 
efficiently; and publicise and implement its development strategies on an ongoing basis to enable 
the capital market to understand its development strategies and business conditions, gradually 
enhancing its brand in investor relations.
 


Investor Q&A

1.  What is the Company's view towards nationwide power supply and demand in 2011?

    China's economy will continue to maintain steady and relatively fast growth in 2011, 
    characterised by a continuous increase in electricity demand. According to the forecasts by 
    the China Electricity Council, nationwide social power consumption is expected to reach 
    approximately 4.7 trillion kWh in 2011, an increase of approximately 12% year-on-year, which 
    is lower than the increase in 2010. The degree of the implementation and effect of industrial 
    development, energy conservation initiatives and tariff policies will have a substantial impact 
    on the increase in power consumption and the consumption pattern.

    Power generation using new energy, construction of trans-regional power grids and renovation of 
    power grids in rural areas will further increase investment in power generation. Completed 
    investment in power project construction is expected to be approximately RMB750 billion for the 
    entire year, of which completed investment in power supply project construction will amount to 
    approximately RMB400 billion. Installed capacity of approximately 90,000 MW will be newly added 
    to nationwide infrastructure. Considering the newly-added installed capacity and the "shutdown 
    of small power plants", overall nationwide power-generating installed capacity will exceed 
    1,040,000 MW by the end of 2011.

    In 2011, provided that the thermal coal supply and normal water resources are secured, there 
    will be an overall balance on nationwide power supply and demand, with surplus power supply in
    some areas. However, due to various uncertainties such as climate, water resources and thermal
    coal supply, there will be periodic tensions between power supply and demand in some areas. In 
    particular, there will be power supply and demand tensions in northern, eastern and southern 
    China; an overall balance with periodic tensions in central China; an overall power surplus in 
    northeastern and northwestern China; and a structural tension in  some provinces in 
    northwestern China. Annual utilisation hours of power generation facilities are expected to be 
    approximately 4,650 hours, basically the same as in 2010; and utilisation hours of coal-fired 
    power generation facilities will be around 5,200 hours, an increase of 150 hours over 2010.

2.  What is the Company's estimate on coal contracts to be signed up in 2011 and what is the 
    Company's assessment towards the supply and demand situation of domestic thermal coal during 
    the year?

    According to the Company's power generation plan for 2011, it is estimated that the Company
    will consume approximately 88 million tonnes of natural coal in 2011. Up to now, the Company 
    has signed up contracts for 35.01 million tonnes of coal, with some contracts being negotiated.
    The prices of coal under the contracts already signed up are maintained at the 2010 level.

    According to the forecasts by the China Coal Transportation & Sale Association and the China 
    Electricity Council, domestic thermal coal supply will continue to maintain relatively fast 
    growth in 2011. However, given the presence of railway and road transportation tensions, 
    thermal coal supply will become particularly tight during climate anomalies. As to coal prices, 
    the National Development and Reform Commission imposed stringent restrictions in 2010 on 
    contract coal prices for 2011 so that contract coal prices cannot be adjusted upwards, and so 
    prices of spot coal will definitely become the only focus for coal enterprises to improve their 
    profitability. Moreover, according to the current trends, international coal prices will very 
    likely remain at a high level or continue to surge in 2011, while given the sharp rise in coal 
    imports to China, China's coal market will become more and more closely linked with the global 
    coal market. As a result, the market prices of coal in China will remain at a high level in 
    2011.

3.  What are the Company's measures to reduce the assets-to-liabilities ratio and to control  
    financial expenses?

    As at 31 December 2010,  the Company's consolidated assets-to-liabilities ratio was 81.95%, 
    representing a decrease of 0.25 percentage points as compared to the end of 2009. The Company's 
    financial expenses in 2010 amounted to RMB5.373 billion, representing an increase of 30.72 % as 
    compared to 2009.

    In response to this situation, the Company has the following three measures to reduce the 
    assets-to-liabilities ratio and to control financial expenses:

    (1)  Actively push forward equity financing;

    (2)  Accelerate the launch of the Company's second issue of corporate bonds;

    (3)  Coordinate the pace of progress of the Company's various projects so as to effectively 
         control capex outlays.

4.  What progress did the Company make on its coal operations in 2010?

    In 2010, the Company made significant progress in the construction and acquisition of coal  
    mines as well as in coal production.

    As to project construction, the Phase 1 project of Shengli Coal Mine East Unit 2 in Xilinhaote 
    was completed and accepted upon inspection in 2010, providing an annual capacity of 10 million 
    tonnes. Preliminary work on the Phase 2 project is progressing smoothly as well.

    With respect to project acquisition, the Company successfully acquired 70% equity interests in 
    Inner Mongolia Baoli Coal Company Limited. The mine has high-quality thermal coal resources,  
    with a capacity of nearly 3 million tonnes/year.

    On the production side, in 2010, Shengli Coal Mine East Unit 2 and Baoli Coal Mine, in both of 
    which the Company has controlling interests, produced 10 million tonnes and 1.92 million tonnes 
    of raw coal respectively, while Tashan Coal Mine and Yuzhou Coal Mine, in both of which the 
    Company owns holding interests, achieved outputs of 20.20 million tonnes and 6.90 million 
    tonnes of raw coal respectively.

    In 2010, the capacities contributed by the coal mines in which the Company owns controlling 
    interests and holding interests provided a strong support to the Company's core power  
    generation business.

5.  What progress did the Company make in its coal-to-chemical projects in 2010 and what are the 
    Company's work targets for 2011?

    The Company has made significant progress in the three super-large coal-to-chemical projects 
    under construction in 2010. The progress made in 2010 and the work targets for 2011 are 
    respectively described as below:

    Duolun Coal Polypropylene Project:

    As at January 2011, the gasification plants No. 2 and No. 3 as well as the MTP plant succeeded
    in operation successively. The synthesised gas produced by the gasification plants had a purity 
    of 86%, while the methanol conversion rate at the MTP plant was over 99%. The purification, 
    methanol and polypropylene plants met the requirements for operation; facilities of coal 
    transportation, power supply, air separation and utilities engineering operated continuously
    and steadily; and a breakthrough progress was made in the overall trial commissioning and 
    operation, having achieved a run-through process in a real sense. In particular, the 
    gasification plants No. 2 and No. 3 as well as the MTP plant have recently succeeded in test 
    runs successively under extreme weather conditions at -30 degrees Celsius, having made a 
    breakthrough in the most core and the most complex technical process of the entire plant and 
    deblocking the major bottleneck of the overall production process. This marks a substantial 
    victory made in the large-scale industrial application of the world's first "Shell" 6-burner 
    brown-coal gasification plant and the world's first MTP plant to the Duolun Coal Chemical 
    Project, which has substantially enhanced our confidence in managing coal-to-chemical plants 
    and delivering continuous and stable production.
 
    The Company's target for 2011 is to open up all the technical processes to achieve stable 
    production of polypropylene.

    Keqi Coal-based Natural Gas Project:

    In 2010, power plants No. 1 and No. 2 of the Keqi Project were connected to the grids, and the 
    chemical water plant commenced operation; chimney No. 1 was put into use while chimney No. 2 
    was topped out. Phase 1 of the architectural engineering structure and sealing of the air 
    separation zone as well as equipment installation were completed. Phase 1 of the main plant 
    structure in the gasification zone was completed and was sealed 70%; major equipment was 
    installed, and service facilities were almost completed.

    Phase 1 of the project is scheduled for production in 2012, with an annual gas transmission 
    capacity of 1.33 billion cubic meters.

    Fuxin Coal-based Natural Gas Project:

    In 2010, the works on plant levelling was almost completed; the works on laying water supplies 
    was completed; foundation earth was excavated for chimney construction in the power plant zone; 
    and demolition works in the main plant zone was almost completed. The overall preliminary 
    design was basically completed.

    Phase 1 of the project is scheduled for production in 2012, with an annual gas transmission 
    capacity of 1.33 billion cubic meters.

6.  What are the market situations that the Company is faced with in 2011 and what are the  
    Company's major work initiatives?

    2011 is the first year of the State's implementation of the "Twelfth Five-year Plan", and marks
    the commencement of the second phase of Datang Power's medium-term development plan. In terms 
    of both the internal and external environments, we are faced with both opportunities and 
    challenges.

    For opportunities, firstly, the domestic economic development will remain favourable in the 
    long run; secondly, the utilisation hours of the Company's generating units will continue to 
    increase steadily; thirdly, we will further capitalise on the strengths of our generating units; 
    and fourthly, the Company's diversified developments will gradually see their harvest day.

    As to challenges, firstly, the global financial crisis has a profound and long-lasting impact; 
    secondly, the State's monetary policy will be gradually tightened; thirdly, coal-fired power 
    enterprises will continue to face a grave situation with the possibility of incurring losses; 
    and fourthly, the pressure from the requirements of energy conservation and emissions reduction 
    is mounting gradually; fifthly, the development of our non-power assets is still facing 
    uncertainties; and sixthly, the operations and reserves of high-quality projects are obviously 
    inadequate.

    In response to such operating conditions, the Company will undertake the following eight major 
    initiatives in 2011, striving to achieve its overall work targets:

    (1)  Intensify safety and technology management, with the focus on creating a fundamentally 
         safe enterprise;

    (2)  Undertake various initiatives to increase income and reduce expenditure, with the focus 
         on enhancing profitability;

    (3)  Become a leading player in the power business, and excel in the non-power businesses, with
         the focus on adjusting and optimising the development structure;

    (4)  Strengthen project construction management, with the focus on building quality projects;
 
    (5)  Enhance the monitoring of energy consumption and environmental protection, with the 
         focus on intensifying energy conservation and emissions reduction;

    (6)  Strengthen direct financing capability, with the focus on pushing forward capital 
         operation;

    (7)  Regulate internal control mechanisms and assessments, with the focus on improving the 
         internal control system;

    (8)  Strengthen the retention and management of talented staff, with the focus on resolving 
         the constraints on human resources.


7.  What are the main missions and objectives under the Company's "Twelfth Five-year" development 
    plan?

    The general mission under the Company's "Twelfth Five-year" plan is based on the strategy which 
    is "focusing in the power generation business whilst deploying diversifications, and striving 
    for profitability as a priority whilst seeking synergistic development". The Company will uphold 
    an integrated-assets positioning: with the power generation business as its core development; 
    with coal operations as its foundation; with coal-to-chemical and alumina projects as a new 
    source of profits; and with railway, port, and shipping as a transportation backbone. The 
    Company will enhance its coal-fired power; aggressively expand its hydropower; continuously 
    develop wind power; strategically develop nuclear power; appropriately develop solar energy; 
    focus on suitable coal operations; actively and steadily develop coal-to-chemical; accelerate 
    the development of integrated use of high-aluminium pulverized fuel ash; and secure a 
    complementary development of railway, port and shipping.
 
    In the regions where the Company has resources and market advantages, the Company will optimise 
    the deployment, carry out innovative developments and dwell on its advantages to build a batch 
    of industrial bases with core competitiveness, strengthening the capabilities of the regional 
    operations and enhancing the Company's brand and profitability. During the "Twelfth Five-year 
    Plan" period, the Company will focus on designing the following six profit bases with distinct 
    assets characteristics and synergistic efficiencies as well as strong development capacities and 
    profitability:

    (1)  The Western Inner Mongolia Coal-Electricity-Aluminium Profit Base with the Tuoketuo Power 
         Plant as the centre;

    (2)  The Eastern Inner Mongolia Energy Chemical Profit Base with "Xiduoke" as the centre;

    (3)  The Pan-Bohai Co-generation Profit Base with Beijing-Tianjing-Liaoning-Hebei as the centre;

    (4)  The Southwestern Hydropower Profit Base with Yunnan-Chongqing-Sichuan-Tibet as the centre;

    (5)  The Southeastern Coastal Coal-Fired Power Profit Base with Jiangsu-Zhejiang-Fujian-Guangdong 
         as the centre;

    (6)  The New Energy Power Generation Profit Base with the "Three Norths" and Southeastern Coastal 
         Wind Power as the focus.
 


Corporate Governance Report

 
The Company was founded in December 1994. Its H shares were listed in both Hong Kong and London in 
March 1997, while its A shares were listed on the Shanghai Stock Exchange in December 2006. Since 
its inception, the Company has established a standardised and sound corporate governance structure 
under the "Company Law", "Securities Law" and the Articles of Association of the Company. 
Shareholders' meeting is highest authority of the Company; the Board is the business 
decision-making body of the Company; and the Supervisory Committee is the supervisory body of the 
Company. The Board and the Supervisory Committee are accountable to shareholders' general meetings 
and execute the resolutions made at shareholders' general meetings. The management is specifically 
responsible for conducting day-to-day production and business activities of the Company, and 
implementing the decision schemes of the Board. Over the years, the shareholders' general meetings, 
the Board, the Supervisory Committee and the management have been operating according to the law 
and protecting the interests of shareholders, having received high recognition from the capital 
market.

The Company Complies with the Requirements of Domestic and Overseas Regulators

In 2010, the actual situation of corporate governance of the Company did not deviate substantially 
from the rules and requirements under the relevant documents of the CSRC. None of the Company, the 
Board or the directors of the Company was subject to the inspection, administrative punishment or 
criticism by means of circular by the CSRC, nor were they penalised by any other regulators or 
reprimanded by any other stock exchanges.

During 2010, the Company fully complied with the principles as set out in the Code on Corporate 
Governance Practices in Appendix 14 to the Rules Governing the Listing of Securities (the "Listing 
Rules") on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") and reached or 
even exceeded the best recommended practices in the Code on Corporate Governance Practices in 
certain aspects.
 
Pursuant to the regulatory requirements updated from time to time, the "System Governing Investors 
Relations", the "System of Accountability for Significant Mistakes in Annual Report Information 
Disclosure", the "System Governing Users of External Information" and the "Rules Governing Fund 
Raising" were considered and approved at the thirty-fourth meeting of the sixth session of the 
Board held on 19 April 2010. The Articles of Association were amended and the amendments were 
submitted to the shareholders' general meeting of the Company for consideration. The "Management 
System of Connected Transactions" was considered and approved at the thirty-seventh meeting of the 
sixth session of the Board held on 29 June 2010, and the "System for Registering Informed Parties 
with Access to Insider Information" was considered and approved at the fourth meeting of the 
seventh session of the Board held on 15 December 2010.

During the reporting period, the Company proactively applied the following various measures to 
govern relevant securities transactions, improved the confidentiality of insider information and 
strengthened the management of parties with access to insider information and users of external 
information to prevent insider trading.

1.  Reminder

    Prior to the commencement of share price sensitive periods such as 60 and 30 days prior to the 
    results announcement, as set out in the Model Code the Company carried out the prevention and 
    control of insiders' trading, by means of email, SMS or otherwise, or by means of issuing open 
    reminder on the Company's in-house website, for informed parties with access to insiders' 
    information within a particular sector to raise the awareness about restrictions on securities 
    trading.

2.  Voluntary Disclosure

    The Company disclosed the "Announcement on Power Generation for the First Quarter of 2010", the
    "Announcement on Power Generation for the First Half Year of 2010", the "Announcement on Power 
    Generation for the Third Quarter of 2010" and the "Announcement on Power Generation for 2010" 
    dated 14 April, 15 July, 13 October 2010 and 19 January 2011, respectively, which voluntarily 
    published the basic information of the Company on production. The Company disclosed the 
    "Announcement on Progress in Major Investment" on 25 March and 16 November 2010, respectively, 
    which voluntarily published details of the progress in the Company's major projects for 2010. 
    The "Announcement on Estimated Increase in Profit for the Annual Results of 2010" was published 
    on 25 January 2011, which voluntarily published basic information on the results of the Company 
    for 2010. The Company's insistent practice to voluntarily disclose major operational data and 
    announcements on the progress in major projects in the day-to-day information disclosure will 
    help minimise information inconsistency, eliminate insiders' trading and prevent exceptional 
    volatility in share prices.

3.  Self-inspection

    Upon a self-inspection by the Company of the relevant parties with access to insiders' 
    information, neither was it found that trading was conducted in the shares of the Company by 
    making use of any insiders' information prior to the disclosure of material sensitive 
    information that might affect the share prices of the Company, nor was the Company subject to 
    any investigation or rectification by the regulatory authorities.

Standardised Operation of Corporate Governance Organisation of the Company

1.  Shareholders and Shareholders' General Meeting

    For years, apart from committing itself to the operation and expansion of its businesses in 
    order to attain appropriate returns for shareholders, the Company also provides details on  
    the Company's operations management and relevant information to shareholders in a timely and 
    accurate manner through a variety of channels and methods, including: convening and holding 
    shareholders' general meetings in strict compliance with the Articles of Association, the 
    Listing Rules and relevant regulations stipulated by the Securities and Futures Commission
    (the "SFC"), and timely announcing relevant information to shareholders on an irregular basis 
    according to the requirements of the Listing Rules.
 
    During the reporting period, the Company held a total of three shareholders' general meetings
    and a professional lawyer was invited to each shareholders' general meeting as a witness to 
    ensure all shareholders were treated equally and exercised their rights adequately.

    The Company has also established specific divisions to assign specific staff to handle 
    relevant work and receive visitors, with contact numbers published to answer phone enquiries
    at any time. In addition, the Company's website has been set up to provide updates and past
    results on the Company, as well as the management organisation of the Company, so as to 
    facilitate a comprehensive understanding of the Company by shareholders and investors.

2.  Directors and the Board

    The Company has established a Board whose members come from diverse backgrounds. The Board 
    members possess remarkable professional characteristics. In the overall composition of the
    Board, the knowledge mix and the area of expertise of each of the directors are both 
    specialised and complementary, thus ensuring the Board makes decisions in a scientific  
    manner. The Board currently comprises 15 members, including five independent directors. The 
    respective directors have extensive experiences in various areas such as macroeconomic
    management, power industry management and financial accounting management, thus ensuring the 
    Company makes major decisions in an effective and scientific way.

    The Directors fully understood their responsibilities, powers and obligations, and managed to 
    discharge their duties with truthfulness, integrity and diligence. In order to enhance the 
    decision-making mechanism, increase the scientific nature of decision-making and improve the 
    quality of substantial decisions, the Board has established three specialised committees, 
    namely the Audit Committee, the Strategy and Investment Committee and the Remuneration and 
    Appraisal Committee, with detailed work rules devised for the respective committees. The 
    convenors of the three specialised committees are independent Directors. In particular, 
    independent Directors make up a majority in the Audit Committee and the Remuneration and 
    Appraisal Committee.

    During the reporting period, the Board held 12 meetings. The convening and voting procedures 
    of the meetings complied with the regulations stipulated by the Articles of Association and
    the "Rules of Proceedings for Board Meetings".


    Executive Directors              Attendance (%)

    Cao Jingshan (Vice Chairman)               100
    Zhou Gang                                  100


    Non-executive Directors          Attendance (%)

    Liu Shunda (Chairman)                      100
    Hu Shengmu                                 100
    Fang Qinghai                               100
    Liu Haixia                                 100
    Guan Tiangang                              100
    Su Tiegang                                 100
    Ye Yonghui                                 100
    Li Gengsheng                               100


    Independent
    Non-executive Directors          Attendance (%)

    Li Yanmeng                                 100
    Zhao Zunlian                               100
    Li Hengyuan                                100
    Zhao Jie                                   100
    Jiang Guohua                               100

    Note:  12 Board meetings were held during 2010. 
           In particular, the seventh session of the 
           Board of the Company commenced from 20 
           August 2010. As at the end of 2010, 4 
           meetings of the seventh session of the 
           Board were held.


    Pursuant to the rules of the China Securities Regulatory Commission, the Company has
    formulated a "Work System for Independent Directors" and an "Annual Report Work System for 
    Independent Directors" to govern a number of areas such as the requirements and procedures 
    for serving as independent directors, the principles of the exercise of powers, the rights 
    entitled to and the corresponding responsibilities and obligations. The systems contain 
    explicit rules specifying the duties, responsibilities and other aspects of independent 
    directors during the preparation and review of the Company's annual reports.

    The independent directors of the Company discharged the relevant duties faithfully based on an
    attitude of integrity and diligence towards the Company and all shareholders (especially small 
    and medium shareholders). During the reporting period, the independent directors proactively 
    attended the shareholders' general meetings, Board meetings and relevant meetings of the 
    specialised committees; discharged their duties conscientiously; offered positive 
    recommendations on the business development and operational management of the Company with full
    use of their expertise and experience in financial, corporate management and other aspects; and
    conducted cautious review and presented independent opinions on the material connected 
    transactions, external guarantees and other matters of the Company. During the preparation of 
    the 2010 Annual Report, the independent directors listened to and inspected carefully the 
    Company's annual production and operations details in strict compliance with the requirements 
    of the securities regulatory authorities and  the  "Annual Report Work System for Independent 
    Directors", and maintained communication with the accountants for the annual audit to acquire 
    a comprehensive understanding of the Company's annual audit arrangements and process, and 
    carried out supervision and inspection, thus playing an active role of an independent director.

3.  Supervisors and the Supervisory Committee

    The Company's Supervisory Committee comprises four members, of whom two are supervisors 
    representing the staff. The membership and composition of the Supervisory Committee comply 
    with the requirements of the laws and regulations. Supervisory Committee members shall exercise 
    their supervisory duty as mandated by the laws, regulations, the Articles of Association and 
    the rights granted by the shareholders' general meeting, and shall be accountable to the 
    shareholders' general meeting in order to ensure that shareholders' interests, the Company's 
    interests and the staff's lawful interests are not violated. During the reporting period, the
    Supervisory Committee held seven meetings and attended all Board meetings and Audit Committee
    meetings. Through various channels and methods, the Supervisory Committee carried out regular
    inspections on the Company's finances and substantial matters, as well as supervising the 
    lawfulness and compliance of the Directors, the President and other management members in 
    discharging their duties.

4.  Chairman and Chief Executive Officer

    The positions of Chairman (chairman of the Board) and President of the Company are held by two 
    different persons, respectively. Mr. Liu Shunda and Mr. Cao Jingshan are the Chairman and the 
    President of the Company, respectively. The power of the Chairman and the President is 
    expressly provided in the Articles of Association. The main duties of the Chairman include 
    presiding over the shareholders' general meetings, convening and presiding over Board meetings
    and reviewing the status of the implementation of the Board's resolutions. The main duties of 
    the President include: (1) to take charge of the production and operation management of the 
    Company, and coordinate the implementation of the Board resolutions; (2) to coordinate the 
    implementation of the Company's annual operation plans and investment proposals; (3) to 
    formulate the plan for establishing the Company's internal management  institutions; (4) to 
    lay down the Company's fundamental management system;  (5) to formulate the fundamental 
    constitution of the Company; (6) to propose the appointments or dismissals of the Vice
    President and the person in charge of finance; and (7) to appoint or dismiss other officers 
    who are not appointed or dismissed by the Board.

5.  Non-executive Directors

    The Company has a total of 13 non-executive Directors. It is provided in the Articles of 
    Association that the term of appointment of Directors (including non-executive Directors) 
    shall not exceed three years and Directors are eligible for re-election and re-appointment. 
    Any new Director will take office only after being elected and approved at the general meeting.

    As stipulated by the regulations of the State's supervisory authorities, the consecutive terms 
    of services of independent non-executive Directors (i.e. independent Directors) shall not 
    exceed six years. The Articles of Association has not expressly provided that the Directors 
    would retire in rotation once every three years.

6.  Remuneration of Directors

    During the Year, the Company and the remunerations of the executive Directors and senior 
    management of the Company followed a salary system primarily based on positional salaries. 
    In accordance with the decision of the Board, the annual remuneration for each independent 
    non-executive Director was RMB60,000 (after tax). The remunerations for other non-executive 
    Directors of the Company were determined by their respective salary systems as provided and 
    paid by their respective affiliated entities. The Board has established the Remuneration and 
    Appraisal Committee, which comprises five Directors with independent Directors making up more 
    than half of the membership.

    The major duties of the Remuneration and Appraisal Committee include: to examine the criteria 
    for the appraisal of Directors and managers, to conduct appraisals and make recommendations 
    thereon; and to examine and review the remuneration policy and plans of the Directors and 
    senior management (as the Company did not enter into service contracts with executive 
    Directors, the duties of the Remuneration and Appraisal Committee did not include the 
    approval of the terms for the service contracts of executive Directors). In March 2011, the 
    Remuneration and Appraisal Committee held a meeting to review the performance and level of 
    remuneration for executive Directors and senior management of the Company in 2010. The 
    composition and level of remuneration were disclosed in this annual report. The attendance
    of the committee members at meetings was as follows:


                                                 Attendance

    Convenor (Chairman):

    Zhao Jie                                           100% 
     (Independent non-executive Director)

    Members:

    Jiang Guohua                                       100% 
     (Independent non-executive Director)
    Li Hengyuan                                        100% 
     (Independent non-executive Director)
    Hu Shengmu (Non-executive Director)                100% 
    Zhou Gang (Executive Director)                     100%


    For relevant details of remuneration of Directors, supervisors and senior management, please 
    refer to Note 12 to the Financial Statements.

7.  Nomination of Directors

    It is provided in the Articles of Association that Directors are elected and formed by the 
    shareholders' general meeting of the Company with each term of appointment not exceeding three 
    years and are eligible for re-election and re-appointment. The Board has yet to set up a 
    nomination committee. Any change to the composition of the Board will be initiated through the
    Board, for which the Board will publish biographies of candidates recommended before the 
    shareholders' general meeting on the basis of recommendations of the shareholders and a review 
    of the candidates' experience, so that all shareholders will be fully aware of the background 
    of the candidates and exercise the power of the shareholders to elect the Directors.
 
    Pursuant to the resolution made at the thirty-seventh meeting of the sixth session of the Board 
    held on 29 June 2010, it was agreed to nominate Liu Shunda, Cao Jingshan, Hu Shengmu, Fang 
    Qinghai, Zhou Gang, Liu Haixia, Guan Tiangang, Su Tiegang, Ye Yonghui and Li Gengsheng as 
    candidates for non-independent Directors of the seventh session of the Board of the Company; 
    it was agreed to nominate Li Yanmeng, Zhao Zunlian, Li Hengyuan, Zhao Jie and Jiang Guohua as
    candidates for independent Directors of the seventh session of the Board of the Company. The 
    above elections for the new session of the Board have been submitted to the 2010 second 
    extraordinary general meeting of the Company held on 19 August 2010 for consideration and 
    approval. The term of office of the seventh session of the Board commenced from the date 
    immediately after the date of approval by the shareholders' general meeting until 30 June 2013.

    Pursuant to the resolution made at the seventeenth meeting of the sixth session of the 
    Supervisory Committee held on 29 June 2010, it was agreed to nominate Zhang Xiaoxu and Fu 
    Guoqiang as candidates for shareholders' representatives of the seventh session of the 
    Supervisory Committee. Qiao Xinyi and Guan Zhenquan have been elected in a workers' congress 
    as supervisors of worker representatives for the seventh session of the Supervisory Committee.
    The above elections for the new session of the Supervisory Committee have been submitted to the 
    2010 second extraordinary shareholders' general meeting of the Company held on 19 August 2010 
    for consideration and approval. The term of office of the seventh session of the Supervisory 
    Committee commenced from the date immediately after the date of approval by the shareholders' 
    general meeting until 30 June 2013.
 
8.  Auditor's Remuneration

    During the Year, the audit service fee payable to RSM China Certified Public Accountants Limited
    Company and RSM Nelson Wheeler, the Company's domestic and international auditors, respectively, 
    amounted to approximately RMB11.8 million. Approximately RMB2.58 million were paid for non-audit 
    service fees which were primarily related professional services fees for the Company's internal
    control audit.

9.  The Audit Committee

    The Audit Committee under the Board comprises five Directors, among whom three are independent
    Directors making up more than half of the membership. Major duties of the Audit Committee 
    include: to supervise the Company's internal audit system and its implementation; to facilitate  
    the communication between internal and external audit parties; to review the Company's financial 
    information and periodic disclosures; to review the Company's internal control system; and to 
    propose the appointment or replacement of external audit firms. The Company's Directors, 
    supervisors, chief financial manager, other senior management members and external auditors of 
    the Company are invited to attend the Audit Committee meetings.
 
    During 2010, the Audit Committee held two meetings in total. Conscientious reviews of the 
    Company's interim and annual results and related financial matters as well as the Company's 
    internal control system were conducted. It also duly assessed the auditors' work. Pursuant to 
    the "Annual Report Work System for the Audit Committee" considered and approved by the Board,
    members of the Audit Committee participated in the process of the preparation of the Company's
    2010 Annual Report. The Company communicated in writing with independent directors and members
    of the Audit Committee during the annual review of the 2010 results announcement and financial
    position. According to the annual audit plan determined in consultation with the accountants, 
    the Audit Committee tracked and supervised the entire annual audit. After the accountants 
    presented the preliminary audit opinion, the Company held a meeting of the Audit Committee and 
    a meeting with independent Directors, at which the independent Directors and members of the Audit
    Committee communicated with the senior management of the Company and the accountants over the 
    Company's 2010 results and financial statements as well as the work of the accountants and the
    internal control status of the Company, and opinions and resolutions were formed accordingly. In 
    response to the establishment situation of the internal control of the Company, the Audit 
    Committee is of the view that the Company's internal control systems were effectively
    implemented, have achieved significant results and have effectively controlled the production 
    and operation risks of the Company. Based on the work of the accountants during the Year, the
    Audit Committee has recommended to the Board the reappointment of RSM China Certified Public 
    Accountants (Special General Partnership) and RSM Nelson Wheeler as respective domestic and 
    international auditors of the Company for 2011, subject to approval at the 2010 Annual General 
    Meeting.

    During the Year, the attendance by the Audit Committee members at the committee's meetings was
    as follows:
 
                                               Attendance
    Convenor (Chairman):

    Ye Guohua                                        100%
     (Independent non-executive Director, 
      financial management expert)

    Members:

    Li Yanmeng                                       100% 
     (Independent non-executive Director)
    Li Hengyuan                                      100% 
     (Independent non-executive Director)
    Ye Yonghui (Non-executive Director)              100% 
    Guan Tiangang (Non-executive Director)            50%


The Company Continues to Improve the Internal Control System

Improving and effectively implementing the internal control is an ongoing responsibility of the 
Board and the management of the Company. The objectives of Datang Power's internal control are to 
provide reasonable assurances that the Company's operations management is lawful and compliant, the 
assets are safe, the financial statements and related information are truthful and complete, and 
operational efficiency and effectiveness are enhanced, thereby promoting the achievement of the 
development strategy of the Company. Due to its inherent limitations, the internal control can only 
provide reasonable assurances for achieving the above objectives in compliance with basic principles. 
Moreover, whether internal control is effective or not may also vary with the changes in the internal 
or external environment or the operating conditions of the Company. An inspection and supervision 
mechanism is set up for the internal control of the Company, under which the Company will take 
immediate corrective measures once a defect is identified in the internal control.

Since its inception, the Company has been continuously building and improving the risk 
management-oriented internal control system to safeguard its sustainable, rapid, healthy, stable and 
orderly development, and to protect the interests of its shareholders pursuant to  the requirements 
of the "Company Law of the People's Republic of China", the "Securities Law of the People's Republic 
of China", the "Governance Standards for Listed Companies", the "Rules Governing the Listing of 
Stocks on Shanghai Stock Exchange", the "Guidelines of the Shanghai Stock Exchange for Internal 
Control of Listed Companies" and "Rules Governing the Listing of Securities on The Stock Exchange of 
Hong Kong Limited" as well as other relevant laws, regulations, rules and normative documents, and 
in line with any changes in the internal and external environments.

As to system build-up, from the perspectives of business management, job functions management and 
job positions management, the Company established various basic corporate management systems that 
comprise a financial management internal control system, a financial accounting system, an internal 
audit system, an administrative system, an information management system and a production management 
system.

With the development of the Company, its business has evolved from the original single conventional 
coal-fired power operation into diversified power and energy developments such as nuclear power, 
railway, port, shipping, coal mining and coal-to-chemical projects. Therefore, in order to improve 
the internal control system of the Company for effective prevention of risks, the Company smoothened, 
modified and replenished the existing internal control system during the reporting period primarily 
by formulating or revising an array of rules or measures of the Company such as the "Measures 
Governing Invitation of Tenders for the Procurement of Project Construction Equipment and Materials", 
the "Measures Governing Property Insurance", the "Measures Governing the Costs of Co-generation 
Production", the "Measures Governing Prepayments" and the "Measures Governing the Invitation of 
Tenders for Production", covering various aspects of the Company such as staff, finance, property, 
production, supply, marketing, decision- making, execution and supervision, These have reinforced 
the Company's internal management rules and systems, and effectively ensured that the Company 
operates and conducts business in a regulated and lawful manner.

As to organisational structure, the Company has established the Supervision and Auditing Department, 
with a comprehensive and effectively operating internal audit system. During the reporting period, 
the Company's internal audit work put its focus on the implementation of the internal control, with 
major inspections conducted on assets, materials and supplies management, contract management and 
connected transactions. Reports on the inspections and supervision of the Company's internal control 
are submitted to the Audit Committee of the Board on a regular basis. Meanwhile, several specialised 
task forces on aspects such as financial budgeting, bidding and tenders, and handling of emergency 
incidents were established at the management level to assist the Company's President to make major 
decisions and to devise risk-prevention proposals in daily operations. Implementation of the 
Company's various management systems and an effective operation of the decision-making system 
facilitated by the Company's specialised committees serve the function of risk-prevention and assure 
the normal production and operation of the Company.
 
The Board of the Company believes that during 2010 the internal control system pertaining to the 
Company's operations and financial accounting complied with the requirements of the relevant 
regulators in all material respects, and that it played a role in the control and prevention of the 
loss of control over major risks, serious management malpractices, errors in important process and so 
forth. During the implementation of the internal control system, the Company has not identified any 
loss of control over major risks, serious management malpractices or errors in important processes. 
Therefore, the Board believes that no major defects were identified in the design or implementation 
of the internal control system of the Company during 2010.

The Company will continue to improve the internal control system in line with continuously 
accumulated management experience, shareholders' recommendations, trends in the development of 
internal control at home and abroad, changes in internal and external risks, and with reference to 
the regulatory rules and requirements.
 
The Company has engaged accounting firm RSM China Certified Public Accountants ("RSM China") to 
present a "Special Explanation regarding the Self-assessment Report of the Board of Directors of 
Datang International Power Generation Co., Ltd. on the Internal Control of the Company (2010)" (the 
"Special Explanation") with respect to the "Self-assessment Report of the Board of Directors of 
Datang International Power Generation Co., Ltd. on the Internal Control of the Company (2010)" (the 
"Self-assessment Report"). The Special Explanation says that based on the work of RSM China, in 2010 
RSM China did not found any inconsistencies in all material respects between the Self-assessment 
Report prepared by the Board, details of the assessment of the internal control pertaining to the 
preparation of financial statements, and audit findings by RSM China on the Company's financial 
statements.

Please refer to the relevant announcements of the Company dated 23 March 2011 on the website of the 
Shanghai Stock Exchange regarding the "Self-assessment Report" and the "Special Explanation".


 
Report of the Directors


The Directors are pleased to present the audited results of the Company for the year ended 31 
December 2010.

Company Results

During the Year, consolidated operating revenue of the Group was approximately RMB60,672 million, 
representing an increase of 26.55% as compared to the Previous Year. Net profit attributable to 
equity holders of the Company was approximately RMB2,570 million, representing an increase of 
approximately 67.24% as compared to the Previous Year. Basic earnings per share attributable to 
equity holders of the Company amounted to approximately RMB0.21, representing an increase of 
approximately RMB0.08 per share as compared to the Previous Year. Please refer to the "Management 
Discussion and Analysis" section for details of the Company results.

In view of the operating results of the Group during the Year, the Board has recommended the 
distribution of a final dividend of RMB0.07 per share (tax included) for the Year, such profit 
distribution plan is subject to the approval by the shareholders at the annual general meeting.

Issues and Listings of Shares

The Company's H Shares have been listed on the Hong Kong Stock Exchange and the London Stock 
Exchange Limited since 21 March 1997. On 9 September 2003, the Company issued 5-year US Dollar 
convertible bond of US$153.8 million, which are listed on the Luxembourg Stock Exchange, at 0.75% 
interest rate per annum and a conversion premium of 30%. The Company's A shares have been listed 
on the Shanghai Stock Exchange since 20 December 2006. Pursuant to the resolution passed at the 
2006  annual general meeting, the Company implemented the share capital expansion proposal by 
utilising its capital reserve fund to issue 10 bonus shares for every 10 shares held by the 
shareholders of the Company in 2007. The Company completed the non-public offering of A shares 
in March 2010, with newly issued A shares of 530,000,000 shares. Due to such changes, as at 31 
December 2010, the total number of shares of the Company was 12,310,037,578 shares. Apart from 
that, the Company did not issue any new shares.

 
Performance of the Company's H shares during 2010:

Closing price of H shares
 as at 31 December 2010                               HK$2.73

Highest trading price of H shares 
 between 1 January and
 31 December 2010                                     HK$3.76

Lowest trading price of H shares 
 between 1 January and
 31 December 2010                                     HK$2.68

Total number of H shares 
 traded between 1 January
 and 31 December 2010                    5.778 billion shares


Performance of the Company's A shares during 2010:

Closing price of A shares
 as at 31 December 2010                               RMB6.09

Highest trading price of A shares 
 between 1 January and
 31 December 2010                                     RMB9.49

Lowest trading price of A shares 
 between 1 January and
 31 December 2010                                     RMB6.00

Total number of A shares 
 traded between 1 January
 and 31 December 2010                    1.638 billion shares


Public Float

Based on information that is publicly available to the Company and within the knowledge of the 
Directors as at the latest practicable date prior to the issue of the annual report, the Company 
confirms that the public float of the Company's H shares and A shares has complied with the 
requirements under the Listing Rules.
 
Accounts

The Company and its subsidiaries' audited results for the year ended 31 December 2010 are set out 
in the Consolidated Statement of Comprehensive Income. The financial position of the Company and 
its subsidiaries as at 31 December 2010 is set out in the Consolidated Statement of Financial 
Position.

The Company and its subsidiaries' consolidated cash flows for the year ended 31 December 2010 are 
set out in the Consolidated Statement of Cash Flows.

Principal Businesses

The Company is principally engaged in the development and operation of power plants, the sale of 
electricity and thermal power, the repair and testing of power equipment, and power related 
technical services, the sale and development of coal, the production and sale of chemical 
products.

Major Suppliers and Customers

The percentage of purchases and sales attributable to the Company's suppliers and customers for 
the Year are as follows:


                                 2010      2009

Purchases
  The largest supplier            16%       18%
  Top five suppliers              37%       35%

Sales
  The largest customer            30%       36%
  Top five customers              60%       70%


To the knowledge of the Directors, none of the Directors, supervisors, their respective 
associates or shareholders (owning 5% or more of the Company's issued share capital of the same 
class) owned any direct or indirect interest in the Company's suppliers and customers mentioned 
above during the Year.
 
Subsidiaries, Associates and Jointly Controlled Entities

Details of subsidiaries, associates and jointly controlled entities of the Company are set out in 
Note 45 to the Financial Statements, Note 19 to the Financial Statements and Note 20 to the 
Financial Statements, respectively.

Dividend, Earnings per Share

The Board recommended the distribution of a proposed final dividend amounting to RMB0.07 per share 
(tax inclusive) for the Year. Dividends to be distributed to domestic shareholders will be declared 
in and paid by RMB, while those to be distributed to foreign shareholders will be declared in RMB 
but paid in Hong Kong dollar. The Hong Kong dollar exchange rate for the purpose of dividends 
payment shall be based on the average of the closing rates of the Hong Kong dollar/RMB exchange 
rates quoted by the People's Bank of China on each business day within the week immediately prior 
to payment.

Details of dividends and earnings per share are set out in Notes 14 and 15 to the Financial 
Statements.

Reserves

Movements in reserves during the Year are set out in Consolidated Statement of Changes in Equity 
and Note 31(b) to the Financial Statements, among which distributable reserves attributable to the 
shareholders amounted to approximately RMB10.136 billion.

Property, Plant and Equipment

Details of movements in property, plant and equipment during the Year are set out in Note 16 to the 
Financial Statements.

Donation

During the Year, the Company and its subsidiaries have made charity and relief donations of 
approximately RMB411,000.

Share Capital

As at 31 December 2010, total share capital of the Company amounted to 12,310,037,578 shares, divided 
into 12,310,037,578 shares carrying a nominal value of RMB1.00 each. Movements in share capital 
during the Year are set out in Note 29 to the Financial Statements.
 
Share Capital Structure

As at 31 December 2010, total number of shares issued by the Company was 12,310,037,578. The 
Company's shareholders were China Datang Corporation ("CDC"), Hebei Construction & Investment Group 
Co., Ltd., Beijing Energy Investment (Group) Company, Tianjin Jinneng Investment Company and other 
holders of domestic shares and foreign holders of H shares, holding 3,959,241,160 A shares, 
1,281,872,927 A shares, 1,278,988,672 A shares, 1,212,012,600 A shares, 1,262,244,641 A shares and 
3,315,677,578 H shares, respectively, representing 32.16%, 10.41%, 10.39%, 9.85%, 10.25% and 26.93%, 
respectively, of the issued share capital of the Company.

Among the H shares, CDC's controlling subsidiary, China Datang Foreign Investment Company Limited, 
held 480,680,000 H shares, and therefore CDC and China Datang Foreign Investment Company Limited 
held a total of 4,439,921,160 shares in the Company, representing 36.07% of the total share capital 
of the Company.
 
Number of Shareholders

Details of the shareholders as recorded in the register of members of the Company as at 31 December 
2010 were as follows:


Total number of shareholders      236,699
Holders of domestic shares        236,057
Holders of H shares                   642


Substantial Shareholders of the Company

As far as the Directors of the Company are aware, as at 31 December 2010, the interests or short 
positions of the person or entities in the shares or underlying shares of the Company as recorded in 
the register required to be kept under section 336 of the Securities and Futures Ordinance (the 
"SFO") (Chapter 571 of the Law of Hong Kong), were as follows:



                                                                 Percentage    Percentage   Percentage 
                                                                   to total      to total       issued
                                                               issued share      issued A     to total
Name of                               Class of         No. of    capital of     shares of  H shares of 
shareholder                             shares    shares held   the Company   the Company  the Company
                                                                        (%)           (%)

CDC (note 1)                          A shares  3,959,241,160         32.16         44.02           --
                                      H shares  480,680,000(L)       3.91(L)           --      14.50(L)

Hebei Construction & Investment       A shares  1,281,872,927         10.41         14.25           --
 Group Co., Ltd. (note 2)

Beijing Energy Investment (Group)     A shares  1,278,988,672         10.39         14.22           --
Company Limited (note 3)

Tianjin Jinneng Investment            A shares  1,212,012,600          9.85         13.48           --
Company (note 4)

(L) = Long positions (S) = Short positions (P) = Lending pool

Notes: 
(1)   Mr. Liu Shunda, Mr. Hu Shengmu and Mr. Fang Qinghai, all non-executive Directors, are 
      employees of CDC.
(2)   Mr. Su Tiegang and Mr. Ye Yonghui, both non-executive Directors, are employees of Hebei 
      Construction & Investment Group Co., Ltd. 
(3)   Mr. Liu Haixia and Ms. Guan Tiangang, both non-executive Directors, are employees of 
      Beijing Energy Investment (Group) Company Limited.
(4)   Mr. Li Gengsheng, a non-executive Director, is an employee of Tianjin Jinneng Investment 
      Company.



Save as disclosed above, as far as the Directors are aware, as at 31 December 2010, apart from Mr. 
Fang Qinghai, Director of the Company, holding 24,000 A shares of the Company, there was no person 
holding interests or short positions in the shares or underlying shares of the Company which was 
required to make disclosure in accordance with the requirements of the SFO.

Interests of Directors and Supervisors in Share Capital

As at 31 December 2010, Director Mr. Fang Qinghai owned 24,000 A shares of the Company. Apart from 
this, none of the Directors, supervisors and chief executives of the Company or their respective 
associates had any interests and short positions in the shares, underlying shares or debentures of 
the Company or any of its associated corporation (as defined in the SFO) that was required to 
notify the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the 
SFO; or required to be recorded in the register mentioned in the SFO pursuant to section 352 of the 
SFO or otherwise required to notify the Company and the Hong Kong Stock Exchange pursuant to the 
Model Code in Appendix 10 to the Listing Rules.

Directors' Service Contracts

As at 31 December 2010, the Company has not entered into any service contracts with its Executive 
Directors.

Interests of Directors and Supervisors in Contracts

No contracts of significance in relation to the Company's business to which the Company or any of 
its subsidiaries was a party, and in which any Director or supervisor had a material interest, either 
directly or indirectly, subsisted at the end of the Year or during the Year.
 
Directors and Supervisors' Benefits from Rights to Acquire Shares or Debentures

No arrangements were made by the Company or its subsidiaries at any time during the Year for any 
Director or supervisor to acquire any shares in or debentures of the Company or any of its 
subsidiaries.

Interests of Substantial Shareholders in Contracts

Save as disclosed in this annual report, none of the Company or its subsidiaries have entered into 
any material contracts or material service contracts with the Company's substantial shareholders or 
its subsidiaries.

Highest Paid Individuals

During the Year, a remuneration system which was mainly based on positional salaries was adopted for 
the Company's  Directors, supervisors and senior management, and appraisals were carried out in 
accordance with the three accountability appraisal management systems. The Remuneration and Appraisal 
Committee assessed such person's performance and remuneration level.

All of the highest paid individuals of the Company during the Year were Directors, supervisors or 
senior management staff. Details of their remunerations are set out in Note 12 to the Financial 
Statements.

Purchase, Sale or Redemption of the Company's Listed Securities

There was no purchase, sale or redemption of the Company's listed securities by the Company or its 
subsidiaries during the Year.

Bank Borrowings, Overdrafts and Other Borrowings

Apart from the loans from China Datang Group Finance Company Limited, short-term bank loans, other 
short-term loans, long-term bank loans and other long-term loans as set out in Note 32 to the 
Financial Statements, and Note 39 to the Financial Statements, there were no other loans of the 
Company and its subsidiaries as at 31 December 2010.

Medium-term Notes, Corporate Bonds

In March 2009, the Company completed the issue of the first tranche of the 2009 medium-term notes. 
The principal amount was RMB3 billion with a term of issue of five years. The nominal value of the 
medium-term notes was RMB100 and the fixed coupon interest rate was 4.1% per annum. In August 2009, 
the Company issued corporate bonds of RMB3 billion, carrying a fixed coupon interest rate of 5% 
with a term of 10 years.

Pre-emptive Rights

There are no provisions for pre-emptive rights under the Articles of Association and applicable PRC 
Laws that require the Company to offer new shares to the existing shareholders in proportion to 
their shareholdings.
 
Connected Transactions

During the Year, the Company or its subsidiaries carried out the following major continuing 
connected transactions (as defined in Chapter 14A of the Listing Rules) with its connected parties 
as defined by the Listing Rules, and such transactions were in compliance with the requirements on 
connected transactions under Chapter 14A of the Listing Rules.


Details of such                                      Amount
major transactions                                 (RMB'000)                  

CDC                                                  57,890

China Datang Technologies and
 Engineering Co., Ltd.                               91,294

China National Water Resources
 & Electric Power Materials
 & Equipment Corporation                            146,378

Interest expenses to China Datang
 Group Finance Company Limited                      193,121

Interest income from China Datang
 Group Finance Company Limited                       15,407

Note 1:  As at 31 December 2010, the balance of deposits of
         the Company and its subsidiaries in China Datang 
         Group Finance Company Limited ("Datang Finance") 
         was RMB1,087,815 million.
Note 2:  Pursuant to the "Financial Services Agreement" 
         dated 28 August 2008 entered into by the Company 
         and Datang Finance, the average daily deposit 
         balance for the Company's deposits at Datang 
         Finance in 2010 did not exceed the cap of the 
         average daily deposit balance of RMB4.5 billion
         as set out in the agreement.

 
Continuing Connected Transactions in 2010

(1)  In August 2008, the Company entered into the "Supplemental Agreement to the Ash Disposal 
     Agreement" with CDC, pursuant to which, CDC agreed to provide disposal service for the 
     ashes generated by all power plants which are wholly-owned, operated and managed by the 
     Company. The annual caps for ash disposal fees payable to CDC by the Company for each of
     the three years ending 31 December 2010 was RMB57,890,000. Within the effective term of 
     the agreement, the transaction amount did not exceed the cap as set out in the agreement.

(2)  In August 2008, the Company and Datang Finance entered into the "Financial Services 
     Agreement (2008)" which was effective from 1 January 2008 to 31 December 2010. Within the 
     effective term of the agreement, Datang Finance provided the relevant financial services 
     to the Company; while the average daily deposit balance for the deposits of the Group 
     with Datang Finance should not exceed RMB4.5 billion during the term of the Agreement. 
     Within the effective term of the agreement, the transaction amount did not exceed the cap
     as set out in the agreement.

(3)  In April 2010, the Company and China National Water Resources & Electric Power Materials 
     & Equipment Corporation ("China Water Resources and Power"), a subsidiary of CDC, entered 
     into a "Framework Agreement for Centralised Materials Purchase". China Water Resources 
     and  Power  was commissioned for planning and organising centralised purchase in 
     accordance with the demands for production material of the Company and its subsidiaries.
     The purchase amount under the framework agreement amounted to approximately RMB300 
     million. The agreement was effective until 31 December 2010. Within the effective term 
     of the agreement, the transaction amount did not exceed the cap as set out in the 
     agreement.
 
The Independent Non-executive Directors have discussed the aforesaid transactions and confirmed 
such transactions are:

(1)  in ordinary and usual course of business of the Company;

(2)  based on the following terms: (a) normal  commercial terms (i.e. terms and conditions 
     applied to similar transactions made by similar domestic business entities) or (b) if 
     there are no comparable terms, on terms that are fair and reasonable and in the interests 
     of the shareholders of the Company;

(3)  based on the following terms: (a) under the terms of the agreements governing such
     transactions or (b) if there are no such agreements, on terms no less favourable to the 
     Company than terms available to or from the third parties.

In accordance with Rule 14A.38 of the Listing Rules, the Board engaged the auditor of the 
Company, RSM Nelson Wheeler, to carry out procedures on the above continuing connected 
transactions in accordance with Hong Kong Standard on Assurance Engagements 3000 "Assurance
 Engagements Other Than Audits or Reviews of Historical Financial Information" and with 
reference to Practice Note 740 "Auditor's Letter on Continuing Connected Transactions under 
the Hong Kong Listing Rules" issued by the Hong Kong Institute of Certified Public Accountants. 
The auditor has reported to the Board based on the agreed engagement stating that:

(1)  the aforesaid transactions have been approved by the Board;

(2)  the aforesaid transactions have been entered into in accordance with the relevant 
     agreements governing the aforesaid transactions;

(3)  the amounts of the aforesaid transactions have not exceeded the relevant caps as 
     disclosed.

Other Connected Transactions in 2010

(1)  In August 2009, Inner Mongolia Datang International Zhuozi Windpower Company Limited, a 
     subsidiary of the Company, entered into the "General Project Contracting Agreement for 
     Inner Mongolia Datang International Zhuozi Windpower Mill Phase IV (48.75MW)" with China 
     Datang Technologies and Engineering Company Limited ("Datang Technologies"). Datang 
     Technologies would provide general contracting services for the Phase 4 of the Zhuozi 
     Windpower project and the contract amount was approximately RMB382 million. Both parties 
     of the agreement continued to execute the contract terms throughout 2010.

(2)  In December 2009 and January 2010, the Company entered into the "General Entrusted Loan 
     Agreement" and "Revolving Entrusted Loan Agreement" with Datang Finance and Datang Inner 
     Mongolia Duolun Coal Chemical Company Limited (the "Duolun Coal Chemical Company") 
     respectively, whereby the Company designated Datang Finance to act as a lending agent 
     through an entrusted loan arrangement to release a general entrusted loan of RMB300 
     million and a revolving entrusted loan of RMB3 billion to Duolun Coal Chemical Company. 
     The above-mentioned entrusted loan matters constituted connected transactions of the 
     Company which were subject to reporting, announcement and independent shareholders' 
     approval requirements under Chapter 14A of the Listing Rules.

(3)  In September 2010, Jiangsu Datang Shipping Company Limited ("Datang Shipping"), a 
     subsidiary of the Company, entered into a "Finance Lease Agreement" with Datang Finance. 
     For a term of 15 years, Datang Finance should provide a financial lease at RMB280 million 
     to Datang Shipping for building a new vessel of 76,000-tonne bulk carrier and the 
     commencement of business operation.

(4)  In May 2010, the Directors approved the Company's proposed non-public issue of not more 
     than 1 billion A shares. On 25 May 2010, the Company and CDC entered into the 
     "Subscription Agreement". CDC intended to subscribe for 10% of the total issued size of 
     A shares issued by the Company at a cash price of not less than RMB6.81 per share. The 
     proposed A shares issue has been approved by China Securities Regulatory Commission. As 
     of the end of 2010, the issue has not been completed.

(5)  In May 2010, Datang Energy and Chemical Co., Ltd., a wholly-owned subsidiary of the 
     Company, entered into a "Capital Contribution Agreement of Inner Mongolia Datang 
     International Keshiketeng Qi Coal- based Gas Company Limited" with Beijing Gas Group, 
     CDC and Tianjin Jinneng Investment Company to contribute to the establishment of a 
     project company in the proportions of 51%, 34%, 10% and 5%, respectively, for the 
     purposes of constructing and operating the Keqi Coal-based Gas Project of 4 billion cubic 
     meters. In 2010, the project company has been established and the coal-based natural gas 
     project has commenced construction.

(6)  In May 2010, Datang Energy and Chemical Co., Ltd, a wholly-owned subsidiary of the 
     Company, entered into a "Capital Contribution Agreement of Liaoning Datang International 
     Fuxin Coal-based Gas Company Limited" with CDC to contribute to the establishment of a 
     project company in the proportions of 90% and 10%, respectively for the purposes of 
     constructing and operating the Liaoning Fuxin Coal-based Gas Project of 4 billion cubic 
     meters. In 2010, the project company has been established and the coal-based natural 
     gas project has commenced construction.

(7)  In May 2010, the Company entered into a "Capital Contribution Agreement of Inner 
     Mongolia Datang International Xilinhaote Mining Company Limited" with China Datang Coal 
     Industry Co.,Ltd. ("China Datang Coal"), a subsidiary of CDC. China Datang Coal 
     increased capital contributions of approximately RMB329 million in cash to the Company's 
     subsidiary, Inner Mongolia Datang International Xilinhaote Mining Company Limited 
     ("Ximeng Mining Company") for jointly developing and constructing Shengli Coal Mine East 
     Unit 2 with the Company. After the increase in capital contributions, the Company held 
     60% equity interest in Ximeng Mining Company while China Datang Coal held 40% equity 
     interest.

(8)  In March 2010, pursuant to the resolution resolved at Datang Finance's shareholders' 
     general meeting, the Company and other shareholders of Datang Finance (including CDC and 
     other existing shareholders) would  increase their capital contributions in Datang 
     Finance totaling RMB600 million in cash in proportion to their original shareholdings in 
     Datang Finance. Among the capital contributions, the Company contributed RMB120 million. 
     Upon completion of the capital contributions, the Company's shareholding in Datang 
     Finance Company remained as 20%.

Material Litigation

The Company was not involved in any material litigation during the Year.

Retirement Scheme

In accordance with the State's employee retirement scheme, the Company has to pay a basic 
pension insurance premium on behalf of the employees at a rate of 20% of the staff's salaries 
whereby the employees would receive a monthly pension payment each month after retirement. In 
addition, the Company has also implemented an enterprise annuity plan, whereby employees will 
make monthly contributions at fixed amounts as individual savings pension insurance funds, 
while the Company will contribute proportionate amounts of the employees' contributions as 
supplementary pension insurance funds. The Company may at its discretion provide additional 
nonrecurring individual savings pension insurance funds depending on the operating results of 
the year. When retired, an employee will receive individual savings pension insurance fund 
and corporate supplemental savings pension insurance fund by the Company. Apart from such 
contributions, the Company has no other liabilities towards the staff retirement scheme.
 
Interest Capitalisation

During the Year, the interest capitalised in respect of construction-in-progress amounted to 
approximately RMB2,083.847 million.

Other Significant Matters

1.  Pursuant to the resolutions passed at the 2009 Annual General Meeting of the Company held 
    on 11 June 2010, the Company distributed a 2009 cash dividend of RMB0.07 per share (tax 
    included) to all shareholders on the basis of the total share capital of 11,780,037,578 
    shares as at 19 April 2010.

2.  Pursuant to the resolutions passed at the thirty-seventh meeting of the sixth session of 
    the Board held on 29 June 2010, the Board approved the nominations of Liu Shunda, Cao 
    Jingshan, Hu Shengmu, Fang Qinghai, Zhou Gang, Liu Haixia, Guan Tiangang, Su Tiegang, Ye 
    Yonghui and Li Gengsheng as candidates for non-independent directors of the seventh 
    session of the Board of the Company; and the nominations of Li Yanmeng, Zhao Zunlian, Li 
    Hengyuan, Zhao Jie and Jiang Guohua as candidates for independent directors of the seventh
    session of the Board of the Company. The afore-mentioned matters regarding the election 
    of the new session of the Board were submitted to the 2010 second extraordinary general
    meeting of the Company held on 19 August 2010 for consideration and approval. The term of
    office of the seventh session of the Board commenced from the day after the approval 
    from the annual general meeting to 30 June 2013.

3.  Pursuant to  the resolutions passed at  the seventeenth meeting of the sixth session of 
    the supervisory committee held on 29 June 2010, the supervisory committee approved the 
    nominations of Zhang Xiaoxu and Fu Guoqiang as candidates for shareholders' 
    representatives of the seventh session of the supervisory committee of the Company. Mr. 
    Qiao Xinyi and Mr. Guan Zhenquan were elected as supervisors representing staff of the 
    seventh session of the supervisory committee of the Company at the staff representatives
    meeting. The afore-mentioned matters regarding the election of the new session of the 
    supervisory committee were submitted to the 2010 second extraordinary general meeting of 
    the Company held on 19 August 2010 for consideration and approval. The term of office of 
    the seventh session of the supervisory committee commenced from the day after the approval 
    from the annual general meeting to 30 June 2013.

4.  Pursuant to the approval by "Reply on the Approval of Non-public Offering of Shares by 
    Datang International Power Generation Co., Ltd." (CSRC Approval No. [2009]1492) issued by
    the China Securities Regulatory Commission, the Company completed the non-public offering 
    of A shares in March 2010. Total issued share capital of the Company amounted to 
    12,310,037,578 shares with newly issued A shares of 530,000,000 shares.

Compliance of the Code on Corporate Governance Practices

To the knowledge of the Board, the Company has complied with the Code on Corporate Governance 
Practices (the "Code") as set out in Appendix 14 to the Listing Rules during the Year.
 
Compliance of the Model Code for Securities Transactions by Directors of Listed Issuers

Upon specific enquiries made to all Directors and in accordance with information provided, the 
Board confirmed that all Directors have complied with the Model Code as the code of conduct for 
securities transactions by Directors during the Year.

Independent Non-executive Directors

After making queries and reviewing the annual confirmation letters from all Independent 
Non-executive Directors in respect of their independence according to Rule 3.13 of the Listing 
Rules, the Company confirms that all Independent Non-executive Directors are independent 
individuals.

Auditor

The Company's financial statements for the year ended 31 December 2010 prepared under 
International Financial Reporting Standards have been audited by RSM Nelson Wheeler.


                                                                          By Order of the Board 
                                                                                     Liu Shunda
                                                                                       Chairman

                                                                                  22 March 2011
 


Report of the Supervisory Committee


Mr Qiao Xinyi
Chairman of the Supervisory Committee
 
During 2010, in compliance with the principle of being accountable to all shareholders of the 
Company and in accordance with the Company Law of the PRC (the "Company Law"), the Articles of 
Association of Datang International Power Generation Co., Ltd. (the "Articles of Association"), 
the Order of Meeting of the Supervisory Committee of Datang International Power Generation Co., 
Ltd. (the "Order of Meeting of the Supervisory Committee") and the relevant requirements of the 
listing rules of the Company's listing jurisdictions, members of the Supervisory Committee of 
the Company dutifully and conscientiously discharged their monitoring duty. In 2010, the 
Supervisory Committee attended all general meetings, Board meetings and meetings of the 
specialised committees of the Board held during the Year. Meanwhile, it actively participated 
in the review of the Company's major decisions and examined the Company's operation and 
financial position periodically. It also strove to protect the rights of the shareholders, the 
benefits of the Company as well as the legal interests of staff. The detailed report on the 
work of the Supervisory Committee for 2010 is as follows:
 

A.  The Supervisory Committee's Work

During 2010, the Supervisory Committee of the Company convened a total of 7 meetings, with 
details as below:


Supervisory Committee
 Meetings Convened            Details of Subjects Discussed

The 14th meeting of           The Company's replacement of self-financed funds already committed  
  the sixth session of the     in advance to investment projects by raised funds
  Supervisory Committee

The 15th meeting of           "Work Report of the Supervisory Committee for Year 2009", "Proposal 
  the sixth session of the     of Final Accounts for Year 2009"," 2010 Financial Budget Report",
  Supervisory Committee        "2009 Profit Distribution Proposal", and "Full Text of the 2009  
                               Annual Report and Summary of the Annual Report"

The 16th meeting of           2010 First Quarterly Report and changes in accounting estimates of  
  the sixth session of the     fixed assets
  Supervisory Committee

The 17th meeting of           Nomination of candidates for the seventh session of the Supervisory 
  the sixth session of the     Committee
  Supervisory Committee

The 18th meeting of           2010 Interim Results Report and the Summary 
  the sixth session of
  Supervisory Committee

The 1st meeting of the        Election of chairman and vice chairman for the seventh session of  
  seventh session of the       the Supervisory Committee
  Supervisory Committee

The 2nd meeting of            Explanation on the 2010 Third Quarterly Report 
  the seventh session of the
  Supervisory Committee
 

 
B.  Independent Opinions of the Supervisory Committee on the Company's Operation in Compliance 
    with Laws

    During the reporting period, members of the Supervisory Committee participated in the 
    discussions on major operating decisions through attending Board meetings and general meetings 
    of the Company, and monitored the financial position and the operation of the Company. The 
    Supervisory Committee is of the view that the Company's business was regulated and operating 
    in strict compliance with the Company Law and the Articles of Association and other relevant 
    regulations and systems in 2010 and its operation and decisions were scientific and rational. 
    Meanwhile, the Company enhanced its internal management and internal control systems and 
    established sound internal control mechanisms. In fulfilling their duties, Directors and 
    senior management of the Company acted diligently and dutifully, abiding by the State laws 
    and regulations and the Articles of Association and systems as well as safeguarding the 
    interests of the Company. No act which violated laws and regulations or contravened the 
    Company's interests and minority shareholders' lawful interests were discovered.

C.  Independent Opinions of the Supervisory Committee on the Inspection of the Company's 
    Financial Status

    During the reporting period, the Supervisory Committee conscientiously and carefully examined 
    and reviewed the Company's accounting statements and financial information. The Supervisory 
    Committee also took part in reviewing the auditor's report and offered opinions and 
    recommendations on the auditor's work. The Supervisory Committee is of the view that the 
    preparation of the Company's financial statements complies with the relevant requirements of
    the Accounting Standards for Business Enterprises, and that the Company's 2010 financial 
    report and the standard unqualified audit report issued by the accountants truthfully reflect
    the financial position and operating results of the Company.

D.  Independent Opinions of the Supervisory Committee on the Actual Application of Proceeds from 
    the Latest Fund-Raising Exercise of the Company

    In March 2010, the Company raised proceeds amounting to RMB3,301,900,000 (a net amount of 
    RMB3,248,246,600) from the non-public offering of 530,000,000 A shares in total. These proceeds
    had been fully utilised as at the end of 2010. The projects to which such proceeds were 
    actually applied were the same projects to which the proceeds had been originally committed.

E.  Independent Opinions of the Supervisory Committee on Acquisitions and Sales of Assets by the 
    Company

    The Supervisory Committee considered that the acquisition of the 100% equity interests in 
    Yuneng (Group) Company Limited and the acquisition of the 70% equity interests in Inner Mongolia 
    Baoli Coal Company Limited and so forth could improve the strategic deployment of the Company,
    reinforce the core power generation business, expand to diversified assets and increase the 
    overall profitability of the Company, which was in line with the Company's strategy of "focusing
    in the power generation business whilst complementing with synergistic diversifications", and 
    was beneficial to the sustainable and healthy development of the Company.

    The Supervisory Committee was of the view that the relevant acquisition prices were reasonable
    and did not harm the interests of the Company's shareholders.

F.  Independent Opinions of the Supervisory Committee on the Connected Transactions Engaged by the 
    Company

    The Supervisory Committee was of the view that the material connected transactions engaged by 
    the Company and its connected persons (including those related to daily operation, assets 
    acquisition or disposal, joint external investment and related debts and liabilities) during 
    the Year complied with normal commercial terms. Such transactions complied with the requirements 
    of the State laws, regulations and the Articles of Association, while the information disclosure 
    and related obligations were timely and thoroughly fulfilled in accordance with the requirements
    of the listing rules of the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
 
G.  Work Plan for 2011

    In 2011, members of the Supervisory Committee of the Company will conscientiously learn the 
    relevant State laws and regulations in order to enhance its political quality and business 
    ability, and to raise the awareness of strengthening supervision and diligently and dutifully 
    fulfilling obligations. With a spirit of being accountable to shareholders and the staff of the 
    enterprise, as well as aligning with the Company's operating activities, members of the 
    Supervisory Committee exercise effective supervision over the Company's major decisions through
    attending Board meetings and relevant important business meetings of the Company, with a view 
    to raising the Company's awareness of risk-prevention.  They will also improve the internal 
    control system of the Company and continuously enhance the corporate governance structure, with
    a view to further upgrading the regulated operation standards of the Company.

                                                                               Supervisory Committee
                                                     Datang International Power Generation Co., Ltd.
 

                                                                                       22 March 2011
 


Taxation in the United Kingdom

 
The comments below are a general guide only, based on the tax law and practice in force as at the 
date of this document which may be subject to changes or revisions. They relate only to certain 
limited aspects of the tax position of shareholders of the Company who are United Kingdom ("UK") 
resident, and (if an individual) who are also UK ordinarily resident and domiciled and who hold 
shares in the Company as an investment, not as a share dealer or financial trader ("Relevant 
Shareholders"). This section is not intended to be and should not be construed as legal or tax 
advice to any particular shareholder. If you are in any doubt as to your tax position you should 
consult an appropriate professional advisor.

Relevant Shareholders will generally be subject to UK income tax or corporation tax on the gross 
amount of dividends paid by the Company, but will normally be entitled to a credit against such 
UK income tax or corporation tax for any PRC withholding tax charged on the dividend.
 
Under the current double taxation treaty between the PRC and the UK, Relevant Shareholders will 
generally be entitled to a reduced rate of PRC withholding tax on dividends paid to them by the 
Company (details of which can be obtained from HM Revenue & Customs). Individual shareholders 
will also be entitled to a non-payable tax credit of one ninth of the distribution.

A corporate Relevant Shareholder should generally be exempt from UK Corporation tax in respect 
of dividends paid to them by the Company. Where this is not the case, corporate Relevant 
Shareholders who control (directly or indirectly) at least 10% of the voting rights of the 
Company may be entitled to credit against UK corporation tax chargeable in respect of dividends 
paid to them by the Company for any underlying PRC tax payable by the Company in respect of the 
profits out of which dividends were paid.

Relevant Shareholders will generally be subject to UK tax on chargeable gains on any gain on a 
disposal of shares, as computed for the purposes of such tax.
 


Independent Auditor's Report

RSM Nelson Wheeler
Certified Public Accountants


TO THE SHAREHOLDERS OF DATANG INTERNATIONAL POWER GENERATION CO., LTD.
(Incorporated in the People's Republic of China with limited liability)

We have audited the consolidated financial statements of Datang International Power Generation 
Co., Ltd. (the "Company") and its subsidiaries (collectively referred to as the "Group"), which 
comprise the consolidated statement of financial position as at 31 December 2010, and the 
consolidated statement of comprehensive income, consolidated statement of changes in equity and 
consolidated statement of cash flows for the year then ended, and a summary of significant 
accounting policies and other explanatory information.

Directors' responsibility for the consolidated financial statements

The directors of the Company are responsible for the preparation of consolidated financial 
statements that give a true and fair view in accordance with International Financial Reporting 
Standards and the disclosure requirements of the Hong Kong Companies Ordinance, and for such 
internal control as the directors determine is necessary to enable the preparation of 
consolidated financial statements that are free from material misstatement, whether due to fraud 
or error.

Auditor's responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on 
our audit and to report our opinion solely to you, as a body, and for no other purpose. We do not 
assume responsibility towards or accept liability to any other person for the contents of this 
report. We conducted our audit in accordance with International Standards on Auditing. Those 
standards require that we comply with ethical requirements and plan and perform the audit to 
obtain reasonable assurance about whether the consolidated financial statements are free from 
material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and 
disclosures in the consolidated financial statements. The procedures selected depend on the 
auditor's judgement, including the assessment of the risks of material misstatement of the 
consolidated financial statements, whether due to fraud or error. In making those risk 
assessments, the auditor considers internal control relevant to the entity's preparation of 
consolidated financial statements that give a true and fair view in order to design audit 
procedures that are appropriate in the circumstances, but not for the purpose of expressing an 
opinion on the effectiveness of the entity's internal control. An audit also includes evaluating 
the appropriateness of accounting policies used and the reasonableness of accounting estimates 
made by the directors, as well as evaluating the overall presentation of the consolidated 
financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 
basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements give a true and fair view of the state of 
affairs of the Group as at 31 December 2010, and of the Group's results and cash flows for the 
year then ended in accordance with International Financial Reporting Standards and have been 
properly prepared in accordance with the disclosure requirements of the Hong Kong Companies 
Ordinance.



RSM Nelson Wheeler 
Certified Public Accountants 
Hong Kong

22 March 2011
 



Consolidated Statement of Comprehensive Income



For the Year Ended 31 December 2010
                                                                     Note              2010          2009
                                                                                    RMB'000       RMB'000
                                                                                                (restated)

Operating revenue                                                       6        60,672,375    47,942,923

Operating costs
  Fuel for power generation                                                     (32,143,481)  (22,147,443)
  Fuel for coal sales                                                            (2,693,996)   (4,860,370)
  Depreciation                                                                   (7,381,972)   (7,521,873)
  Repairs and maintenance                                                        (1,897,715)   (1,809,210)
  Salaries and staff welfare                                                     (2,047,788)   (1,822,231)
  Local government surcharges                                                      (395,380)     (382,296)
  Others                                                                         (4,908,348)   (2,754,701)
                                                                                ------------  ------------
Total operating costs                                                           (51,468,680)  (41,298,124)
                                                                                ------------  ------------
Operating profit                                                                  9,203,695     6,644,799
  Shares of profits of associates                                      19           718,231       462,112
  Shares of profits/(losses) of jointly controlled entities                           1,104       (52,685)
  Investment income                                                                  10,015         6,245
  Other gains                                                           7           102,377       148,441
  Interest income                                                                    38,215        33,124
  Finance costs                                                         9        (5,373,337)   (4,110,557)
                                                                                ------------  ------------
Profit before tax                                                                 4,700,300     3,131,479
  Income tax expense                                                   10          (871,355)     (614,926)
                                                                                ------------  ------------
Profit for the year                                                    11         3,828,945     2,516,553
                                                                                ------------  ------------
Other comprehensive income after tax:
  Reclassification adjustments for amounts transferred
   to profit or loss upon disposals of available-forsale
   investments, net of tax                                                          (10,955)           --
  Fair value (loss)/gain on available-for-sale investments, net 
   of tax                                                                           (41,340)       10,955
  Share of other comprehensive income of associates, net of tax                     (25,900)      (29,494)
  Foreign currency translation differences                                           17,610           655
                                                                                ------------  ------------
Other comprehensive income for the year, net of tax                                 (60,585)      (17,884)
                                                                                ------------  ------------
Total comprehensive income for the year                                           3,768,360     2,498,669
                                                                                ============  ============



                                                                                       2010          2009
                                                                                    RMB'000       RMB'000
                                                                                                (restated)

Profit for the year attributable to:
  Owners of the Company                                                           2,569,734     1,536,554
  Non-controlling interests                                                       1,259,211       979,999
                                                                                ------------  ------------
                                                                                  3,828,945     2,516,553
                                                                                ============  ============
Total comprehensive income for the year attributable to:
  Owners of the Company                                                           2,513,417     1,516,479
  Non-controlling interests                                                       1,254,943       982,190
                                                                                ------------  ------------
                                                                                  3,768,360     2,498,669
                                                                                ============  ============
                                                                                        RMB           RMB
                                                                                                (restated)
Earnings per share
  Basic                                                                15              0.21          0.13
                                                                                ============  ============






Consolidated Statement of Financial Position



At 31 December 2010

                                                                      At               At              At
                                                             31 December      31 December       1 January 
                                                  Note              2010             2009            2009
                                                                 RMB'000          RMB'000         RMB'000
                                                                                (restated)      (restated)

ASSETS
                     
Non-current assets                     
  Property, plant and equipment                     16       179,233,770      157,440,059     136,090,312
  Investment properties                             17           211,866               --              --
  Intangible assets                                 18         2,498,329        2,122,836       2,031,470
  Investments in associates                         19         4,591,838        3,772,537       2,050,393
  Investments in jointly controlled entities        20         2,649,778        1,636,674       1,302,097
  Available-for-sale investments                    21         2,304,158        1,339,829         675,849
  Deferred housing benefits                         22           132,530          163,384         193,469
  Long-term entrusted loans to associates           23                --          130,194          50,104
  Deferred tax assets                               35           972,760          767,899         711,096
  Other long-term assets                                         428,477          109,422          80,170
                                                            -------------    -------------   -------------
                                                             193,023,506      167,482,834     143,184,960
                                                            -------------    -------------   -------------
Current assets                     
  Inventories                                       24         4,011,713        1,840,510       2,142,781
  Accounts and notes receivable                     25         8,158,622        6,634,917       4,312,697
  Prepayments and other receivables                 26         4,101,545        6,574,901       2,486,512
  Short-term entrusted loans to related parties     27           100,153           17,000          31,330
  Tax recoverable                                                 76,820           91,216              --
  Restricted cash                                                     --               --         460,477
  Fixed deposits over three months                                    --               --          30,000
  Cash and cash equivalents                         28         3,442,976        1,506,435       5,078,032
  Assets of disposal group classified as held
   for sale                                                           --               --         992,146
                                                            -------------    -------------   -------------
                                                              19,891,829       16,664,979      15,533,975
                                                            -------------    -------------   -------------
TOTAL ASSETS                                                 212,915,335      184,147,813     158,718,935
                                                            =============    =============   =============



At 31 December 2010

                                                                      At               At              At
                                                             31 December      31 December       1 January 
                                                  Note              2010             2009            2009
                                                                 RMB'000          RMB'000         RMB'000
                                                                                (restated)      (restated)

EQUITY AND LIABILITIES              

Capital and reserves              
  Share capital                                     29        12,310,038       11,780,038      11,780,038
  Reserves                                          31        15,343,804       12,692,473      11,769,363
  Retained earnings              
    Proposed dividends                              14           861,703          861,703       1,295,804
    Others                                                     2,334,526          788,508       1,406,306
                                                            -------------    -------------   ------------- 
Equity attributable to owners of the Company                  30,850,071       26,122,722      26,251,511

Non-controlling interests                                      7,582,760        6,649,510       4,654,462
                                                            -------------    -------------   -------------
Total equity                                                  38,432,831       32,772,232      30,905,973
                                                            -------------    -------------   ------------- 
Non-current liabilities              
  Long-term loans                                   32       109,585,377       99,506,545      69,026,422
  Long-term bonds                                   33         5,949,018        5,938,544              --
  Deferred income                                   34           460,989          475,788         499,328
  Deferred tax liabilities                          35           439,226          323,789         395,549
  Provisions                                        36            41,603           36,008              --
  Other long-term liabilities                       37         3,723,182        3,701,165       4,170,097
                                                            -------------    -------------   -------------
                                                             120,199,395      109,981,839      74,091,396
                                                            -------------    -------------   -------------
Current liabilities                     
  Accounts payable and accrued liabilities          38        18,930,066       14,040,020      13,229,560
  Taxes payable                                                1,165,696          380,778         382,216
  Dividends payable                                                2,336           36,909             145
  Short-term loans                                  39        19,374,828       19,569,023      29,604,108
  Short-term bonds                                                    --               --       3,500,000
  Current portion of non-current liabilities    32, 37        14,810,183        7,367,012       6,861,589
  Liabilities of disposal group classified
   as held for sale                                                   --               --         143,948
                                                            -------------    -------------   -------------
                                                              54,283,109       41,393,742      53,721,566
                                                            -------------    -------------   -------------
Total liabilities                                            174,482,504      151,375,581     127,812,962
                                                            -------------    -------------   -------------
TOTAL EQUITY AND LIABILITIES                                 212,915,335      184,147,813     158,718,935
                                                            -------------    -------------   -------------
Net current liabilities                                      (34,391,280)     (24,728,763)    (38,187,591)
                                                            =============    =============   =============
Total assets less current liabilities                        158,632,226      142,754,071     104,997,369
                                                            =============    =============   =============

Approved by the Board of Directors on 22 March 2011                     



                    Cao Jingshan                       Zhou Gang
                      Director                         Director



For the Consolidated Statement of Changes in Equity, please visit:
http://www.prnasia.com/sa/attachment/2011/04/20110428697356.80.pdf



Consolidated Statement of Cash Flows



For the Year Ended 31 December 2010               

                                                                Note              2010             2009
                                                                               RMB'000          RMB'000
                                                                                             (restated)

CASH FLOWS FROM OPERATING ACTIVITIES               

  Cash generated from operations                               40(a)        18,352,813       12,841,813
  Interest received                                                             38,215           33,124
  Income tax paid                                                             (881,439)      (1,130,084)
                                                                           ------------     ------------
Net cash generated from operating activities                                17,509,589       11,744,853
                                                                           ------------     ------------
CASH FLOWS FROM INVESTING ACTIVITIES               

  Additions to property, plant and equipment                               (22,717,180)     (27,488,769)
  Additions to intangible assets                                              (127,031)         (11,417)
  Decrease in fixed deposits over three months                                      --           30,000
  Acquisitions of subsidiaries                                                 458,211         (218,527)
  Additional investments in jointly controlled entities                     (1,012,000)        (387,262)
  Acquisitions of associates                                                        --         (184,892)
  Establishments of associates                                                      --          (53,300)
  Additional investments in associates                                        (276,860)        (108,100)
  Investments in available-for-sale investments                               (786,686)        (655,880)
  Acquisitions of non-controlling interests                                   (590,039)          (7,000)
  Prepayments for investments                                                 (350,000)      (1,289,000)
  Additional entrusted loans made                                             (274,000)        (124,270)
  Proceeds from disposals of property, plant and equipment                     209,690          758,749
  Proceeds from disposals of investment properties                              10,800               --
  Proceeds from disposals of subsidiaries                                           --          395,990
  Proceeds from disposals of associates                                        319,848           87,099
  Proceeds from disposals of available-for-sale investments                     62,734           86,631
  Repayments of entrusted loans                                                191,000           58,600
  Dividends received                                                           264,413          344,923
  (Increase)/decrease in security deposits for notes payable                   (29,562)         184,437
  Others                                                                      (141,054)           6,793
                                                                           ------------     ------------
Net cash used in investing activities                                      (24,787,716)     (28,575,195)
                                                                           ------------     ------------
CASH FLOWS FROM FINANCING ACTIVITIES

  Capital injections from non-controlling interests                            671,982        2,003,680
  Drawdown of short-term loans                                              46,051,309       57,298,202
  Drawdown of long-term loans                                               32,397,025       44,211,565
  Proceeds from issue of shares                                              3,248,372               --
  Issuance of medium-term notes and long-term bonds, net of
   issuance costs                                                                   --        5,967,000
  Proceeds from sale and leaseback transactions                                415,977               --
  Repayment of short-term loans                                            (46,047,517)     (53,305,028)
  Repayment of long-term loans                                             (17,204,614)     (30,201,544)
  Repayment of short-term bonds                                                     --       (3,500,000)
  Payments on sale and leaseback transactions                               (1,319,845)        (578,951)
  Interest paid                                                             (7,237,519)      (6,621,328)
  Dividends paid to owners of the Company                                     (861,703)      (1,295,804)
  Dividends paid to non-controlling interests                                 (942,526)        (609,490)
  Underwriting fees paid                                                            --          (35,800)
  Others                                                                        21,824          (74,284)
                                                                           ------------     ------------
Net cash generated from financing activities                                 9,192,765       13,258,218
                                                                           ------------     ------------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS                         1,914,638       (3,572,124)
 
Effect of foreign exchange rate changes                                         21,903              527
               
CASH AND CASH EQUIVALENTS AT 1 JANUARY                                       1,506,435        5,078,032
                                                                           ------------     ------------
CASH AND CASH EQUIVALENTS AT 31 DECEMBER                       28            3,442,976        1,506,435
                                                                           ============     ============



Notes to the Financial Statements


For the Year Ended 31 December 2010


1.  GENERAL INFORMATION

    Datang International Power Generation Co., Ltd. (the "Company") was incorporated in the
    People's Republic of China (the "PRC") as a joint stock limited liability company. The 
    Company's H shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited
    (the "Hong Kong Stock Exchange") and the London Stock Exchange Limited while the Company's 
    A shares are listed on the Shanghai Stock Exchange. The address of its registered office is 
    No. 482, Guanganmennei Avenue, Xuanwu District, Beijing 100053, the PRC. The addresses of 
    its principal place of business in the PRC and the Hong Kong Special Administrative Region 
    of the PRC ("Hong Kong") are No. 9 Guangningbo Street, Xicheng District, Beijing 100033, the 
    PRC and Stephen Mok & Co. in association with Eversheds, 21/F., Gloucester Tower, 15 Queen's 
    Road Central, Hong Kong respectively.

    The principal activities of the Company and its subsidiaries (collectively referred to as 
    the "Group") are power generation and power plant development in the PRC. The Group also 
    engaged in coal trading, chemical products manufacturing and selling, etc.

    In the opinion of the directors of the Company, China Datang Corporation ("China Datang"), 
    a company incorporated in the PRC, is the ultimate parent of the Company.

2.  ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

    In the current year, the Group has adopted all the new and revised International Financial 
    Reporting Standards ("IFRSs") that are relevant to its operations and effective for its 
    accounting year beginning on 1 January 2010. IFRSs comprise International Financial 
    Reporting Standards ("IFRS"); International Accounting Standards ("IAS"); and Interpretations. 
    The adoption of these new and revised IFRSs did not result in significant changes to the 
    Group's accounting policies and amounts reported for the current year and prior years except 
    as stated below.

    (a)  Business combinations

         IFRS 3 (Revised) "Business Combinations" continues to require acquisition method to be 
         applied to business combinations with some significant changes:

         --  Contingent consideration is recognised at its acquisition-date fair value and forms 
             part of the cost of acquisition. The previous IFRS 3 requires that a contingent 
             consideration be recognised if it is probable and can be measured reliably.

         --  In a business combination achieved in stages, the previously held equity interest 
             in the subsidiary is remeasured at its acquisition-date fair value and the resulting 
             gain or loss is recognised in consolidated profit or loss. The fair value is added 
             to the cost of acquisition to calculate goodwill. The previous IFRS 3 does not have 
             a requirement for such fair value measurement.

         --  There is a choice to measure initially the non-controlling interests in a subsidiary 
             either at their acquisition-date fair value or the non-controlling shareholders' 
             proportionate share of the net fair value of the subsidiary's identifiable assets and 
             liabilities at the acquisition date. The previous IFRS 3 only allows the latter 
             choice.

         --  If a business combination is accounted for using provisional amounts, the measurement
             period that the provisional amounts can be adjusted retrospectively is limited to one
             year from the acquisition date to reflect new information obtained about facts and 
             circumstances that existed as of the acquisition date and, if known, would have 
             affected the measurement of the amounts recognised as of that date. The previous IFRS
             3 does not have a time limit for adjustments in relation to contingent considerations
             and deferred tax assets. Subsequent adjustments to contingent considerations and 
             deferred tax assets will adjust goodwill.

         --  Acquisition-related costs are recognised as expenses in the periods in which the costs
             are incurred and the services are received. The previous IFRS 3 requires that 
             acquisition-related costs form part of the cost of a business combination.

         IFRS 3 (Revised) has been applied prospectively to business combinations for which the 
         acquisition date is on or after 1 January 2010 and resulted in changes in the consolidated
         amounts reported in the financial statements as follows:

                                                            2010       2009
                                                         RMB'000    RMB'000
                                                          unless 
                                                       otherwise
                                                          stated

         Decrease in goodwill                             (7,860)        --
         Increase in operating expenses - others           7,860         --
         Decrease in earnings per share (RMB)                 --         --


    (b)  Classification of land leases

         Amendments to IAS 17 "Leases" deleted the guidance in IAS 17 that when the land has an 
         indefinite economic life, the land element is normally classified as an operating lease
         unless title is expected to pass to the lessee by the end of the lease term.

         The adoption of the amendments to IAS 17 has resulted in a change in accounting policy for
         the classification of leasehold land of the Group. Previously, leasehold land was 
         classified as an operating lease and stated at cost less accumulated amortisation. In 
         accordance with the amendments, leasehold land is classified as a finance lease and 
         stated at cost less accumulated depreciation if substantially all risks and rewards of 
         the leasehold land have been transferred to the Group. As the present value of the minimum
         lease payments (i.e. the transaction price) of the land held by the Group amounted to 
         substantially all of the fair value of the land as if it were freehold, the leasehold land 
         of the Group has been classified as a finance lease. The amendments have been applied 
         retrospectively to unexpired leases at the date of adoption of the amendments on the basis
         of information existing at the inception of the leases.

         Amendments to IAS 17 has been applied retrospectively and resulted in changes in the 
         consolidated amounts reported in the financial statements as follows:

  
                                                                At              At              At
                                                       31 December     31 December       1 January
                                                              2010            2009            2009
                                                           RMB'000         RMB'000         RMB'000

         Increase in property, plant and equipment       1,990,989       1,523,509       1,269,909
         Decrease in land use rights                    (1,990,989)     (1,523,509)     (1,269,909)


         The Group has not applied the new IFRSs that have been issued but are not yet effective. 
         The Group has already commenced an assessment of the impact of these new IFRSs but is not 
         yet in a position to state whether these new IFRSs would have a material impact on its 
         results of operations and financial position.

3.  SIGNIFICANT ACCOUNTING POLICIES

    These financial statements have been prepared in accordance with IFRSs and the applicable 
    disclosures required by the Rules Governing the Listing of Securities on the Hong Kong Stock 
    Exchange and by the Hong Kong Companies Ordinance.

    These financial statements have been prepared under the historical cost convention, as modified 
    by the revaluation of certain available-for-sale investments.

    At 31 December 2010, a significant portion of the funding requirements of the Group for capital
    expenditures was satisfied by short-term borrowings. Consequently, at 31 December 2010, the Group
    had net current liabilities of approximately RMB34.39 billion (2009, as restated: RMB24.73 
    billion). The Group had significant undrawn borrowing facilities, subject to certain conditions, 
    amounting to approximately RMB145.98 billion (2009: RMB169.00 billion) and may refinance and/or 
    restructure certain short-term borrowings into long-term borrowings and will also consider 
    alternative sources of financing, where applicable. The directors of the Company are of the 
    opinion that the Group will be able to meet its liabilities as and when they fall due within the 
    next twelve months and have prepared these financial statements on a going concern basis.

    The preparation of financial statements in conformity with IFRSs requires the use of certain key 
    assumptions and estimates. It also requires the directors to exercise their judgements in the 
    process of applying the accounting policies. The areas involving critical judgements and areas 
    where assumptions and estimates are significant to these financial statements, are disclosed in 
    note 4 to the financial statements.

    The significant accounting policies applied in the preparation of these financial statements are
    set out below.

    (a)  Consolidation

         The consolidated financial statements include the financial statements of the Company and 
         all its subsidiaries made up to 31 December. Subsidiaries are entities over which the Group 
         has control. Control is the power to govern the financial and operating policies of an 
         entity so as to obtain benefits from its activities. The existence and effect of potential
         voting rights that are currently exercisable or convertible are considered when assessing
         whether the Group has control.

         Subsidiaries are consolidated from the date on which control is transferred to the Group. 
         They are de-consolidated from the date the control ceases.

         The gain or loss on the disposal of a subsidiary that results in a loss of control represents
         the difference between (i) the fair value of the consideration of the sale plus the fair 
         value of any investment retained in that subsidiary and (ii) the Company's share of the net
         assets of that subsidiary plus any remaining goodwill relating to that subsidiary and any
         related accumulated foreign currency translation reserve.

         Intragroup transactions, balances and unrealised profits are eliminated. Unrealised losses
         are also eliminated unless the transaction provides evidence of an impairment of the asset 
         transferred. Accounting policies of subsidiaries have been changed where necessary to ensure
         consistency with the policies adopted by the Group.

         Non-controlling interests represent the equity in subsidiaries not attributable, directly or
         indirectly, to the Company. Non-controlling interests are presented in the consolidated 
         statement of financial position and consolidated statement of changes in equity within 
         equity. Non-controlling interests are presented in the consolidated statement of 
         comprehensive income as an allocation of profit or loss and total comprehensive income for 
         the year between the non-controlling shareholders and owners of the Company.

         Profit or loss and each component of other comprehensive income are attributed to the owners
         of the Company and to the non-controlling shareholders even if this results in the 
         non-controlling interests having a deficit balance.

         Changes in the Company's ownership interest in a subsidiary that do not result in a loss of 
         control are accounted for as equity transactions (i.e. transactions with owners in their 
         capacity as owners). The carrying amounts of the controlling and non-controlling interests
         are adjusted to reflect the changes in their relative interests in the subsidiary. Any 
         difference between the amount by which the non-controlling interests are adjusted and the
         fair value of the consideration paid or received is recognised directly in equity and 
         attributed to the owners of the Company.

    (b)  Business combination under common control

         The consolidated financial statements incorporate the financial statements of the combining
         entities as if they had been combined from the date when they first came under the control
         of the controlling party.

         The consolidated statements of comprehensive income and consolidated statements of cash 
         flows include the results and cash flows of the combining entities from the earliest date 
         presented or since the date when the combining entities first came under the common control,
         where this is a shorter period, regardless of the date of the common control combination.

         The consolidated statements of financial position have been prepared to present the assets
         and liabilities of the combining entities as if the current Group structure had been in
         existence at the end of each reporting period. The net assets of the combining entities 
         are combined using the existing book values from the controlling party's perspective. No 
         amount is recognised in respect of goodwill or gain on bargain purchase at the time of 
         common control combination, to the extent of the continuation of the controlling party's 
         interest.

         There was no adjustment made to the net assets nor the net profit or loss of any combining 
         entities in order to achieve consistency of the Group's accounting policies.

    (c)  Business combination other than under common control

         The acquisition method is used to account for the acquisition of a subsidiary in a business
         combination. The cost of acquisition is measured at the acquisition-date fair value of the 
         assets given, equity instruments issued, liabilities incurred and contingent consideration. 
         Acquisition-related costs are recognised as expenses in the periods in which the costs are 
         incurred and the services are received. Identifiable assets and liabilities of the 
         subsidiary in the acquisition are measured at their acquisition-date fair values.

         The excess of the cost of acquisition over the Company's share of the net fair value of the
         subsidiary's identifiable assets and liabilities is recorded as goodwill. Any excess of the
         Company's share of the net fair value of the identifiable assets and liabilities over the 
         cost of acquisition is recognised in consolidated profit or loss as a gain on bargain
         purchase which is attributed to the Company.

         In a business combination achieved in stages, the previously held equity interest in the 
         subsidiary is remeasured at its acquisition-date  fair value and the resulting gain or loss 
         is recognised in consolidated profit or loss. The fair value is added to the cost of 
         acquisition to calculate the goodwill.

         If the changes in the value of the previously held equity interest in the subsidiary were 
         recognised in other comprehensive income (for example, available-for-sale investments), the 
         amount that was recognised in other comprehensive income is recognised on the same basis as 
         would be required if the previously held equity interest were disposed of.

         Goodwill is tested annually for impairment or more frequently if events or changes in 
         circumstances indicate that it might be impaired. Goodwill is measured at cost less 
         accumulated impairment losses. The method of measuring impairment losses of goodwill is the 
         same as that of other assets as stated in the accounting policy (ab) below. Impairment 
         losses of goodwill are recognised in consolidated profit or loss and are not subsequently 
         reversed. Goodwill is allocated to cash-generating units that are expected to benefit from 
         the synergies of the acquisition for the purpose of impairment testing.

         The non-controlling interests in the subsidiary are initially measured at the 
         non-controlling shareholders' proportionate share of the net fair value of the subsidiary's 
         identifiable assets and liabilities at the acquisition date.

    (d)  Associates

         Associates are entities over which the Group has significant influence. Significant 
         influence is the power to participate in the financial and operating policies of an entity
         but is not control or joint control over those policies. The existence and effect of 
         potential voting rights that are currently exercisable or convertible are considered when 
         assessing whether the Group has significant influence.

         Investments in associates are accounted for in the consolidated financial statements by the
         equity method and are initially recognised at cost. Identifiable assets and liabilities of 
         the associate in an acquisition are measured at their fair values at the acquisition date. 
         The excess of the cost of acquisition over the Group's share of the net fair value of the
         associate's identifiable assets and liabilities is recorded as goodwill. The goodwill is 
         included in the carrying amount of the investment and is tested for impairment together 
         with the investment at the end of each reporting period when there is objective evidence 
         that the investment is impaired. Any excess of the Group's share of the net fair value of
         the identifiable assets and liabilities over the cost of acquisition is recognised in 
         consolidated profit or loss.

         The Group's share of an associate's post-acquisition profits or losses is recognised in 
         consolidated profit or loss, and its share of the post-acquisition movements in reserves 
         is recognised in the consolidated reserves. The cumulative post-acquisition movements are 
         adjusted against the carrying amount of the investment. When the Group's share of losses
         in an associate equals or exceeds its interest in the associate, including any other 
         unsecured receivables, the Group does not recognise further losses, unless it has incurred
         obligations or made payments on behalf of the associate. If the associate subsequently 
         reports profits, the Group resumes recognising its share of those profits only after its
         share of the profits equals the share of losses not recognised.

         The gain or loss on the disposal of an associate that results in a loss of significant 
         influence represents the difference between (i) the fair value of the consideration of the
         sale plus the fair value of any investment retained in that associate and (ii) the Group's 
         share of the net assets of that associate plus any remaining goodwill relating to that 
         associate and any related accumulated foreign currency translation reserve.

         Unrealised profits on transactions between the Group and its associates are eliminated to
         the extent of the Group's interests in the associates. Unrealised losses are also 
         eliminated unless the transaction provides evidence of an impairment of the asset 
         transferred. Accounting policies of associates have been changed where necessary to ensure
         consistency with the policies adopted by the Group.

    (e)  Joint venture

         A joint venture is a contractual arrangement whereby the Group and other parties undertake
         an economic activity that is subject to joint control. Joint control is the contractually 
         agreed sharing of control over the economic activity when the strategic financial and 
         operating decisions relating to the activity require the unanimous consent of the parties
         sharing control (the "venturers").

         A jointly controlled entity is a joint venture that involves the establishment of a 
         separate entity in which each venturer has an interest.

         Investments in jointly controlled entities are accounted for in the consolidated financial 
         statements by the equity method and are initially recognised at cost. Identifiable assets
         and liabilities of a jointly controlled entity in an acquisition are measured at their 
         fair values at the acquisition date. The excess of the cost of acquisition over the Group's 
         share of the net fair value of the jointly controlled entity's identifiable assets and 
         liabilities is recorded as goodwill. The goodwill is included in the carrying amount of
         the investment and is tested for impairment together with the investment at the end of each 
         reporting period when there is objective evidence that the investment is impaired. Any 
         excess of the Group's share of the net fair value of the identifiable assets and 
         liabilities over the cost of acquisition is recognised in consolidated profit or loss.

         The Group's share of the jointly controlled entities' post-acquisition profits or losses is
         recognised in consolidated profit or loss, and its share of the post-acquisition movements 
         in reserves is recognised in the consolidated reserves. The cumulative post-acquisition
         movements are adjusted against the carrying amount of the investments. When the Group's 
         share of losses in the jointly controlled entities equals or exceeds its interest in the
         jointly controlled entities, including any other unsecured receivables, the Group does not
         recognise further losses, unless it has incurred obligations or made payments on behalf of
         the jointly controlled entities. If the jointly controlled entities subsequently report 
         profits, the Group resumes recognising its share of those profits only after its share of
         the profits equals the share of losses not recognised.

         The gain or loss on the disposal of a jointly controlled entity that results in a loss of 
         joint control represents the difference between (i) the fair value of the consideration of
         the sale plus the fair value of any investment retained in that jointly controlled entity 
         and (ii) the Group's share of the net assets of that jointly controlled entity plus any 
         remaining goodwill relating to that jointly controlled entity and any related accumulated 
         foreign currency translation reserve.

         Unrealised profits on transactions between the Group and its jointly controlled entities
         are eliminated to the extent of the Group's interests in the jointly controlled entities. 
         Unrealised losses are also eliminated unless the transaction provides evidence of an 
         impairment of the asset transferred. Accounting policies of jointly controlled entities 
         have been changed where necessary to ensure consistency with the policies adopted by the 
         Group.

    (f)  Foreign currency translation

         (i)   Functional and presentation currency

               Items included in the financial statements of each of the Group's entities are measured
               using the currency of the primary economic environment in which the entity operates (the 
               "functional currency"). The consolidated financial statements are presented in Renminbi
               ("RMB"), which is the Company's functional and presentation currency, and all values are
               rounded to the nearest thousand (RMB'000), unless otherwise stated.

         (ii)  Transactions and balances in each entity's financial statements

               Transactions in foreign currencies are translated into the functional currency on 
               initial recognition using the exchange rates prevailing on the transaction dates. 
               Monetary assets and liabilities in foreign currencies are translated at the exchange 
               rates at the end of each reporting period. Gains and losses resulting from this
               translation policy are recognised in profit or loss.

               Non-monetary items that are measured at fair values in foreign currencies are translated 
               using the exchange rates at the dates when the fair values are determined.

               When a gain or loss on a non-monetary item is recognised in other comprehensive income, 
               any exchange component of that gain or loss is recognised in other comprehensive income.
               When a gain or loss on a non-monetary item is recognised in profit or loss, any exchange 
               component of that gain or loss is recognised in profit or loss.

         (iii) Translation on consolidation

               The results and financial position of all the Group entities that have a functional 
               currency different from the Company's presentation currency are translated into the 
               Company's presentation currency as follows:

               --  Assets and liabilities for each statement of financial position presented are 
                   translated at the closing rate at the date of that statement of financial position;

               --  Income and expenses for each statement of comprehensive income are translated at 
                   average exchange rates (unless this average is not a reasonable approximation of the
                   cumulative effect of the rates prevailing on the transaction dates, in which case 
                   income and expenses are translated at the exchange rates on the transaction dates); 
                   and

               --  All resulting exchange differences are recognised in the foreign currency translation
                   reserve.

               On consolidation, exchange differences arising from the translation of the net investment
               in foreign entities and of borrowings are recognised in the foreign currency translation 
               reserve. When a foreign operation is sold, such exchange differences are recognised in 
               consolidated profit or loss as part of the gain or loss on disposal.

               Goodwill and fair value adjustments arising on the acquisition of a foreign entity are 
               treated as assets and liabilities of the foreign entity and translated at the closing 
               rate.

    (g)  Property, plant and equipment

         Property, plant and equipment, other than construction in progress, are stated at cost less 
         accumulated depreciation and impairment losses.

         Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, 
         as appropriate, only when it is probable that future economic benefits associated with the item 
         will flow to the Group and the cost of the item can be measured reliably. All other repairs and
         maintenance are recognised in profit or loss during the period in which they are incurred.

         Depreciation of property, plant and equipment is calculated at rates sufficient to write off 
         their cost less their residual values over the estimated useful lives on a straight-line basis. 
         The principal useful lives are as follows:


         Land use rights                        10 - 70 years 
         Buildings and structures                8 - 45 years 
         Electricity utility plants              4 - 35 years
         Transportation facilities               6 - 12 years 
         Others                                  5 - 22 years

         The residual values, useful lives and depreciation method are reviewed and adjusted, if 
         appropriate, at the end of each reporting period.

         Construction in progress represents buildings and structures under construction and plant and 
         machinery pending installation, and is stated at cost less impairment losses. Depreciation 
         begins when the relevant assets are available for use.

         The gain or loss on disposal of property, plant and equipment is the difference between the net 
         sales proceeds and the carrying amount of the relevant asset, and is recognised in profit or
         loss.

    (h)  Investment properties

         Investment properties are land and/or buildings held to earn rentals and/or for capital 
         appreciation. An investment property is measured initially at its cost including all direct
         costs attributable to the property.

         After initial recognition, the investment property is stated at cost less accumulated 
         depreciation and impairment losses. The depreciation is calculated using the straight line
         method to allocate the cost to the residual value over its estimated useful life of 30 years.

         The gain or loss on disposal of an investment property is the difference between the net 
         sales proceeds and the carrying amount of the property, and is recognised in profit or loss.

    (i)  Leases

         The Group as lessee

         (i)   Operating leases

               Leases that do not substantially transfer to the Group all the risks and rewards of
               ownership of assets are accounted for as operating leases. Lease payments (net of any
               incentives received from the lessor) are recognised as an expense on a straight-line 
               basis over the lease term.

         (ii)  Finance leases

               Leases that substantially transfer to the Group all the risks and rewards of ownership
               of assets are accounted for as finance leases. At the commencement of the lease term, 
               a finance lease is capitalised at the lower of the fair value of the leased asset and
               the present value of the minimum lease payments, each determined at the inception of 
               the lease.

               The corresponding liability to the lessor is included in the statement of financial 
               position as finance lease payable. Lease payments are apportioned between the finance 
               charge and the reduction of the outstanding liability. The finance charge is allocated
               to each period during the lease term so as to produce a constant periodic rate of 
               interest on the remaining balance of the liability.

               Assets under finance leases are depreciated the same as owned assets.

               A sale and leaseback transaction involves the sale of an asset and the leasing back of
               the same asset. The lease payment and the sale price are usually interdependent because
               they are negotiated as a package. If a sale and leaseback transaction results in a 
               finance lease, any excess of sales proceeds over the carrying amount shall be deferred 
               and amortised over the lease term.

         The Group as lessor

         (i)   Operating leases

               Leases that do not substantially transfer to the lessees all the risks and rewards of 
               ownership of assets are accounted for as operating leases. Rental income from operating 
               leases is recognised on a straight- line basis over the term of the relevant lease.

         (ii)  Finance leases

               Leases that substantially transfer to the lessees all the risks and rewards of ownership
               of assets are accounted for as finance leases. Amounts due from lessees under finance
               leases are recognised as receivables at the amount of the Group's net investment in the
               leases. Finance lease income is allocated to accounting periods so as to reflect a 
               constant periodic rate of return on the Group's net investment outstanding in respect of
               the leases.

    (j)  Intangible assets (other than goodwill)

         Intangible assets, other than goodwill, are stated at cost less accumulated amortisation and 
         impairment losses. Amortisation of intangible assets is calculated either at rates sufficient
         to write off their cost over the estimated useful lives on a straight-line basis or on a 
         systematic and proper method to reflect the pattern in which the asset's future economic 
         benefits are expected to be realised by the Group. Mining rights are amortised on the 
         systematic and proper method while the principal useful lives of other intangible assets are 
         as follows:


         Resource use rights                  10 years
         Technology know-how                  10 years or over the beneficial period upon commencement
                                               of commercial production
         Computer software                    2 - 9 years
         Others                               14 months


    (k)  Inventories

         Inventories are stated at the lower of cost and net realisable value. Cost is determined using
         weighted average method. Costs of inventories include direct material cost and transportation 
         expenses incurred in bringing them to the working locations. Net realisable value is the
         estimated selling price in the ordinary course of business, less the estimated costs in power
         generation and selling expenses.

    (l)  Recognition and derecognition of financial instruments

         Financial assets and financial liabilities are recognised in the statement of financial 
         position when the Group becomes a party to the contractual provisions of the instruments.

         Financial assets are derecognised when the contractual rights to receive cash flows from the
         assets expire; the Group transfers substantially all the risks and rewards of ownership of the 
         assets; or the Group neither transfers nor retains substantially all the risks and rewards of
         ownership of the assets but has not retained control on the assets. On derecognition of a 
         financial asset, the difference between the asset's carrying amount and the sum of the 
         consideration received and the cumulative gain or loss that had been recognised in other 
         comprehensive income is recognised in profit or loss.

         Financial liabilities are derecognised when the obligation specified in the relevant contract
         is discharged, cancelled or expires. The difference between the carrying amount of the 
         financial liability derecognised and the consideration paid is recognised in profit or loss.

    (m)  Investments

         Investments are recognised and derecognised on a trade date basis where the purchase or sale
         of an investment is under a contract whose terms require delivery of the investment within the
         timeframe established by the market concerned, and are initially measured at fair value, plus
         directly attributable transaction costs except in the case of financial assets at fair value
         through profit or loss.

         Investments are classified as either financial assets at fair value through profit or loss or
         available-for-sale investments.

         (i)   Financial assets at fair value through profit or loss

               Financial assets at fair value through profit or loss are either investments classified 
               as held for trading or designated as at fair value through profit or loss upon initial 
               recognition. These investments are subsequently measured at fair value. Gains or losses
               arising from changes in fair value of these investments are recognised in profit or loss.

         (ii)  Available-for-sale investments

               Available-for-sale investments are non-derivative financial assets not classified as 
               loans and receivables or financial assets at fair value through profit or loss. 
               Available-for-sale investments are subsequently measured at fair value. Gains or 
               losses arising from changes in fair value of these investments are recognised in other
               comprehensive income, until the investments are disposed of or there is objective 
               evidence that the investments are impaired, at which time the cumulative gains or losses
               previously recognised in other comprehensive income are recognised in profit or loss. 
               Interest calculated using the effective interest method is recognised in profit or loss.

               Impairment losses recognised in profit or loss for equity investments classified as 
               available-for-sale investments are not subsequently reversed through profit or loss. 
               Impairment losses recognised in profit or loss for debt instruments classified as 
               available-for-sale investments are subsequently reversed and recognised in profit or 
               loss if an increase in the fair value of the instruments can be objectively related to 
               an event occurring after the recognition of the impairment loss.

    (n)  Loans and receivables

         Loans and receivables are non-derivative financial assets with fixed or determinable payments 
         that are not quoted in an active market and are recognised initially at fair value and 
         subsequently measured at amortised cost using the effective interest method, less allowance 
         for impairment. Loans and receivables primarily include long-term entrusted loans to 
         associates, short-term entrusted loans to ultimate parent company, other receivables, accounts
         and notes receivable, restricted cash, fixed deposits over three months and cash and cash 
         equivalents in the statement of financial position. An allowance for impairment of loans and 
         receivables is established when there is objective evidence that the Group will not be able 
         to collect all amounts due according to the original terms of loans and receivables. The 
         amount of the allowance is the difference between the loans and receivables' carrying amount 
         and the present value of estimated future cash flows, discounted at the effective interest 
         rate computed at initial recognition. The amount of the allowance is recognised in profit or
         loss.

         Impairment losses are reversed in subsequent periods and recognised in profit or loss when an
         increase in the loans and receivables' recoverable amount can be related objectively to an 
         event occurring after the impairment was recognised, subject to the restriction that the 
         carrying amount of the loans and receivables at the date the impairment is reversed shall not
         exceed what the amortised cost would have been had the impairment not been recognised.

    (o)  Cash and cash equivalents

         For the purpose of the statement of cash flows, cash and cash equivalents represent cash at 
         bank and on hand, demand deposits with banks and other financial institutions, and short-term
         highly liquid investments which are readily convertible into known amounts of cash and subject
         to an insignificant risk of change in value. Bank overdrafts which are repayable on demand and
         form an integral part of the Group's cash management are also included as a component of cash 
         and cash equivalents.

    (p)  Financial liabilities and equity instruments

         Financial liabilities and equity instruments are classified according to the substance of the
         contractual arrangements entered into and the definitions of a financial liability and an 
         equity instrument under IFRSs. An equity instrument is any contract that evidences a residual 
         interest in the assets of the Group after deducting all of its liabilities. The accounting 
         policies adopted for specific financial liabilities and equity instruments are set out below.

    (q)  Borrowings

         Borrowings  are recognised initially at fair value, net of transaction costs incurred, and 
         subsequently measured at amortised cost using the effective interest method.

         Borrowings are classified as current liabilities unless the Group has an unconditional right 
         to defer settlement of the liability for at least 12 months after the reporting period.


    (r)  Financial guarantee contract liabilities

         The Group issues financial guarantee contracts that transfer significant insurance risk. 
         Financial guarantee contracts are those contracts that require the issuer to make specified 
         payments to reimburse the holders for losses they incur because specified debtors fail to
         make payments when due in accordance with the original or modified terms of debt instruments.

         At the end of each reporting period, liability adequacy tests are performed to ensure the
         adequacy of the contract liabilities. In performing these tests, current best estimates of 
         future contractual cash flows and related administrative expenses are used. Any deficiency 
         is immediately charged to the profit or loss by establishing a provision for losses arising 
         from these tests.

    (s)  Accounts payable and accrued liabilities

         Accounts payable and accrued liabilities are stated initially at their fair values and 
         subsequently measured at amortised cost using the effective interest method unless the effect
         of discounting would be immaterial, in which case they are stated at cost. 

    (t)  Equity instruments

         Equity instruments issued by the Company are recorded at the proceeds received, net of direct
         issue costs.

    (u)  Revenue recognition

         Revenue is measured at the fair value of the consideration received or receivable and is 
         recognised when it is probable that the economic benefits will flow to the Group and the 
         amount of revenue can be measured reliably. Revenue is shown net of value-added tax, returns,
         rebates and discounts.

         Revenue from sales of electricity and heat represents the amount of tariffs billed for 
         electricity and heat generated and transmitted to the respective power companies and heat
         supply companies.

         Revenue associated with sales of coal and other goods is recognised when the title to the 
         goods has been passed to customers, which is the date when the goods are either picked up at
         site or free on board, or delivered to the designated locations and accepted by the customers.

         Interest income is recognised on a time-proportion basis using the effective interest method.


    (v)  Employee benefits

         (i)   Pension and other social obligations

               The Group contributes to defined contribution schemes including pension and /or other 
               social benefits in accordance with the local conditions and practices in the 
               municipalities and provinces in which it operates. Contributions to the schemes by the 
               Group and employees are calculated as a percentage of employees' basic salaries. The 
               scheme cost charged to profit or loss represents contributions payable by the Group to
               the funds.

         (ii)  Staff housing benefits

               The Company provides housing to its employees at preferential prices. The difference 
               between the selling price and the cost of housing is considered a housing benefit to 
               the employees and is recorded as deferred housing benefits which are amortised on a 
               straight-line basis over the estimated remaining average service lives of the relevant
               employees and included in salaries and staff welfare expenses.

               During 2005 to 2007, the Company and some of its subsidiaries also started to provide 
               monetary housing subsidies to their employees. These subsidies are considered housing 
               benefits and are recorded as deferred housing benefits which are amortised on a 
               straight-line basis over the estimated remaining average service lives of the relevant
               employees and included in salaries and staff welfare expenses.

               In addition, the Group also contributes to the state-prescribed housing fund. Such 
               costs are charged to the profit or loss as incurred.

         (iii) Termination benefits

               Termination benefits are recognised when, and only when, the Group demonstrably 
               commits itself to terminate employment or to provide benefits as a result of 
               voluntary redundancy by having a detailed formal plan which is without realistic 
               possibility of withdrawal.

    (w)  Borrowing costs

         Borrowing costs directly attributable to the acquisition, construction or production of 
         qualifying assets, which are assets that necessarily take a substantial period of time  
         to get ready for their intended use or sale, are capitalised as part of the cost of those 
         assets, until such time as the assets are substantially ready for their intended use or 
         sale. Investment income earned on the temporary investment of specific borrowings pending
         their expenditure on qualifying assets is deducted from the borrowing costs eligible for 
         capitalisation.

         To the extent that funds are borrowed generally and used for the purpose of obtaining a 
         qualifying asset, the amount of borrowing costs eligible for capitalisation is determined
         by applying a capitalisation rate to the expenditures on that asset. The capitalisation
         rate is the weighted average of the borrowing costs applicable to the borrowings of the
         Group that are outstanding during the period, other than borrowings made specifically for
         the purpose of obtaining a qualifying asset.

         All other borrowing costs are recognised in profit or loss in the period in which they are
         incurred.

    (x)  Government grants

         A government grant is recognised when there is reasonable assurance that the Group will 
         comply with the conditions attaching to it and that the grant will be received.

         Government grants relating to income are deferred and recognised in profit or loss over
         the period to match them with the costs they are intended to compensate.

         Government grants that become receivable as compensation for expenses or losses already
         incurred or for the purpose of giving immediate financial support to the Group with no 
         future related costs are recognised in profit or loss in the period in which they become
         receivable.

         Government grants relating to the purchase of assets are recorded as deferred income and
         recognised in profit or loss on a straight-line basis over the useful lives of the related
         assets.

    (y)  Taxation

         Income tax represents the sum of the current tax and deferred tax.

         The tax currently payable is based on taxable profit for the year. Taxable profit differs
         from profit recognised in profit or loss because it excludes items of income or expense
         that are taxable or deductible in other years and it further excludes items that are never
         taxable or deductible. The Group's liability for current tax is calculated using tax rates
         that have been enacted or substantively enacted by the end of the reporting period.

         Deferred tax is recognised on differences between the carrying amounts of assets and 
         liabilities in the financial statements and the corresponding tax bases used in the
         computation of taxable profit. Deferred tax liabilities are generally recognised for all 
         taxable temporary differences and deferred tax assets are recognised to the extent that 
         it is probable that taxable profits will be available against which deductible temporary
         differences, unused tax losses or unused tax credits can be utilised. Such assets and 
         liabilities are not recognised if the temporary difference arises from goodwill or from 
         the initial recognition (other than in a business combination) of other assets and 
         liabilities in a transaction that affects neither the taxable profit nor the accounting
         profit.

         Deferred tax liabilities are recognised for taxable temporary differences arising on
         investments in subsidiaries, associates and joint controlled entities, except where the
         Group is able to control the reversal of the temporary difference and it is probable that 
         the temporary difference will not reverse in the foreseeable future.

         The carrying amount of deferred tax assets is reviewed at the end of each reporting 
         period and reduced to the extent that it is no longer probable that sufficient taxable
         profits will be available to allow all or part of the asset to be recovered.

         Deferred tax is calculated at the tax rates that are expected to apply in the period when
         the liability is settled or the asset is realised, based on tax rates that have been 
         enacted or substantively enacted by the end of the reporting period. Deferred tax is
         recognised in profit or loss, except when it relates to items recognised in other 
         comprehensive income or directly in equity, in which case the deferred tax is also 
         recognised in other comprehensive income or directly in equity.

         Deferred tax assets and liabilities are offset when there is a legally enforceable right
         to set off current tax assets against current tax liabilities and when they relate to
         income taxes levied by the same taxation authority and the Group intends to settle its 
         current tax assets and liabilities on a net basis.

    (z)  Value-added tax ("VAT")

         Revenue from sales of electricity and heat and revenue associated with sales of coal and
         other goods are subjected to VAT in the PRC. VAT payable is determined by applying 17% 
         or 13% or 6% on the taxable revenue after offsetting deductible input VAT of the period.

    (aa) Related parties

         A party is related to the Group if:

         (i)   directly  or indirectly through one or more intermediaries, the party controls, is
               controlled by, or is under common control with, the Group; has an interest in the
               Group that gives it significant influence over the Group; or has joint control over
               the Group;

         (ii)  the party is an associate; 
 
         (iii) the party is a joint venture;

         (iv)  the party is a member of the key management personnel of the Company or its parent;

         (v)   the party is a close member of the family of any individual referred to in (i) or
               (iv);

         (vi)  the party is an entity that is controlled, jointly controlled or significantly 
               influenced by or for which significant voting power in such entity resides with,
               directly or indirectly, any individual referred to in (iv) or (v); or

         (vii) the party is a post-employment benefit plan for the benefit of employees of the
               Group, or of any entity that is a related party of the Group.

         State-owned enterprises, other than entities under China Datang which is also a 
         state-owned enterprise, directly or indirectly controlled by the Central People's 
         Government of the PRC ("Other State-Owned Enterprises") are also regarded as related
         parties of the Group.

         For the purpose of the related party transactions and balances disclosure, the Group has
         established procedures for determination, to the extent possible, of the identification 
         of the ownership structure of its customers and suppliers as to whether they are 
         state-owned enterprises to ensure the adequacy of disclosure for all material related 
         party transactions and balances given that many state-owned enterprises have 
         multi-layered corporate structures and their ownership structures change over time as a 
         result of transfers and privatisation programs.

    (ab) Impairment of assets

         At the end of each reporting period, the Group reviews the carrying amounts of its 
         tangible and intangible assets except goodwill, deferred tax assets, investments, 
         inventories and receivables to determine whether there is any indication that those
         assets have suffered an impairment loss. If any such indication exists, the recoverable 
         amount of the asset is estimated in order to determine the extent of any impairment loss.
         Where it is not possible to estimate the recoverable amount of an individual asset, the
         Group estimates the recoverable amount of the cash-generating unit to which the asset 
         belongs.

         Recoverable amount is the higher of fair value less costs to sell and value in use. In
         assessing value in use, the estimated future cash flows are discounted to their present
         value using a pre-tax discount rate that reflects current market assessments of the 
         time value of money and the risks specific to the asset.

         If the recoverable amount of an asset or cash-generating unit is estimated to be less 
         than its carrying amount, the carrying amount of the asset or cash-generating unit is
         reduced to its recoverable amount. An impairment loss is recognised immediately in 
         profit or loss, unless the relevant asset is carried at a revalued amount, in which 
         case the impairment loss is treated as a revaluation decrease.

         Where an impairment loss subsequently reverses, the carrying amount of the asset or 
         cash-generating unit is increased to the revised estimate of its recoverable amount, but
         so that the increased carrying amount does not exceed the carrying amount that would 
         have been determined (net of amortisation or depreciation) had no impairment loss been 
         recognised for the asset or cash-generating unit in prior years. A reversal of an 
         impairment loss is recognised immediately in profit or loss, unless the relevant asset
         is carried at a revalued amount, in which case the reversal of the impairment loss is 
         treated as a revaluation increase.

    (ac) Provisions and contingent liabilities

         Provisions are recognised for liabilities of uncertain timing or amount when the Group
         has a present legal or constructive obligation arising as a result of a past event, it
         is probable that an outflow of economic benefits will be required to settle the 
         obligation and a reliable estimate can be made. Where the time value of money is 
         material, provisions are stated at the present value of the expenditures expected to 
         settle the obligation.

         Where it is not probable that an outflow of economic benefits will be required, or the
         amount cannot be estimated reliably, the obligation is disclosed as a contingent 
         liability, unless the probability of outflow is remote. Possible obligations, whose 
         existence will only be confirmed by the occurrence or non-occurrence of one or more
         future events are also disclosed as contingent liabilities unless the probability of
         outflow is remote.

    (ad) Events after the reporting period

         Events after the reporting period that provide additional information about the Group's
         position at the end of the reporting period or those that indicate the going concern
         assumption is not appropriate are adjusting events and are reflected in the financial 
         statements. Events after the reporting period that are not adjusting events are 
         disclosed in the notes to the financial statements when material.

4.  CRITICAL JUDGEMENT AND KEY ESTIMATES

    Critical judgement in applying accounting policies

    In the process of applying the accounting policies, the directors have made the following 
    judgement that has the most significant effect on the amounts recognised in the financial
    statements (apart from those involving estimations, which are dealt with below).

    Going concern basis

    These financial statements have been prepared on a going concern basis, the validity of 
    which depends upon the availability of funding from various sources to enable the Group to
    operate as a going concern and meet its liabilities as they fall due. Details are explained
    in note 3 to financial statements.

    Key sources of estimation uncertainty

    The key assumptions concerning the future, and other key sources of estimation uncertainty 
    at the end of the reporting period, 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)  Depreciation of property, plant and equipment

         The Group determines the estimated useful lives, residual values and related 
         depreciation charges for its property, plant and equipment. This estimate is based on
         the projected wear and tear incurred during power generation. This could change 
         significantly as a result of technical renovations on power generators. The Group will
         revise the depreciation charge where useful lives and residual values are different to
         those previously estimated, or it will write-off or write-down technically obsolete or
         non-strategic assets that have been abandoned or sold.

    (b)  Impairment of property, plant and equipment

         The Group tests annually whether property, plant and equipment have suffered any 
         impairment in accordance with the accounting policy stated in note 3 (ab) to the 
         financial statements. An impairment loss is recognised when the carrying amount of 
         property, plant and equipment exceeds their recoverable amount which has been 
         determined based on value in use calculations. These calculations require the use of
         estimates such as electricity and heat tariffs and fuel prices. Changes of assumptions 
         in electricity and heat tariffs and fuel prices could affect the result of property, 
         plant and equipment impairment assessment.

    (c)  Approval of construction in new power plants

         The Group has not received relevant government approvals from the National Development
         and Reform Commission (the "NDRC") for its certain power plant construction projects. 
         The ultimate approval from the NDRC on these projects is a critical estimate and 
         judgement of the directors. Such an estimate and judgement are based on initial
         approval documents received as well as their understanding of the projects. Based on
         historical experience, the directors believe that the Group will receive final approval
         from the NDRC on the related power plant projects. Deviation from this estimate and 
         judgement could result in material adjustments to the carrying amount of property, plant
         and equipment.

    (d)  Impairment of goodwill
         Determining whether goodwill is impaired requires an estimation of the value in use of 
         the cash-generating unit to which goodwill has been allocated. The value in use 
         calculation requires the Group to estimate the future cash flows expected to arise from
         the cash-generating unit and a suitable discount rate in order to calculate the present
         value, of which details are provided in note 18 to financial statements.

    (e)  Deferred tax assets

         The estimates of deferred tax assets require estimates over future taxable profit and 
         corresponding applicable income tax rates of respective years. The change in future 
         income tax rates and timing would affect income tax expense or credit, as well as 
         deferred tax balance. The realisation of deferred tax assets also depends on the 
         realisation of sufficient future taxable profits of the Group. Deviation of future 
         profitability from the estimate could result in material adjustments to the carrying 
         amount of deferred tax assets.

    (f)  Income taxes

         The Group is subject to income taxes in various regions. Significant estimates are
         required in determining the provision for income taxes. There are many transactions 
         and calculations for which the ultimate tax determination is uncertain during the 
         ordinary course of business, overall assets transfers and corporate restructuring. 
         Where the final tax outcome of these matters is different from the amounts that were
         initially recorded, such differences will impact the income tax and deferred tax 
         provisions in the period in which such determination is made.

5.  FINANCIAL RISK MANAGEMENT

    The Group's activities expose it to a variety of financial risks: foreign currency risk, 
    price risk, credit risk, liquidity risk and interest rate risk. The Group's overall risk 
    management programme focuses on the unpredictability of financial markets and seeks to
    minimise potential adverse effects on the Group's financial performance.

    (a)  Foreign currency risk

         Foreign currency risk of the Group primarily arises from certain loans denominated 
         in United States dollar ("USD") and Hong Kong dollar ("HKD"). The Group currently 
         does not have a foreign currency hedging policy in respect of foreign currency debts.
         The Group maintains a close look at the international foreign currency market on the
         changing exchange rates and takes these into consideration when raising foreign 
         currency loans and investing in foreign currency deposits.

         At 31 December 2010, if RMB had weakened by 5 per cent (2009: 5 per cent) against
         USD or HKD with all other variables held constant, consolidated profit after tax for 
         the year would have been RMB67,134 thousand (2009: RMB55,482 thousand) lower, 
         arising as a result of the foreign exchange loss on USD and HKD loans. If RMB had
         strengthened by 5 per cent (2009: 5 per cent) against USD or HKD with all other 
         variables held constant, consolidated profit after tax for the year would have been
         RMB67,134 thousand (2009: RMB55,482 thousand) higher, arising as a result of the 
         foreign exchange gain on USD and HKD loans.

    (b)  Price risk

         The Group's certain available-for-sale investments amounted to RMB91,043 thousand
         (2009: RMB18,700 thousand) as disclosed in note 21 to the financial statements are 
         measured at fair value at the end of each reporting period. Therefore, the Group 
         is exposed to equity security price risk. Since the amounts of such investments are
         insignificant to the Group, the directors of the Company are of opinion that the 
         Group is not exposed to any significant equity security price risk as at 31 December
         2010 and 2009. The Group closely monitors the pricing trends in the open market in
         determining their long-term strategic stakeholding decisions.

    (c)  Credit risk

         The carrying amount of the bank deposits, accounts receivable, other receivables, 
         long-term entrusted loans and short-term entrusted loans included in the statement 
         of financial position represents the Group's maximum exposure to credit risk in
         relation to the Group's financial assets.

         The Group maintains most of its bank deposits in several major state-owned financial
         institutions in the PRC and a non-bank financial institution which is a related 
         party of the Group. With strong State support provided to those state-owned 
         financial institutions and the holding of directorship in the board of the related 
         party non-bank financial institution, the directors are of the opinion that there is
         no significant credit risk on such assets being exposed.

         With regard to accounts receivable arising from power sales, most of the power
         plants of the Group sell electricity to their sole customers, the power grid 
         companies of their respective provinces or regions where the power plants operate. 
         These power plants of the Group communicate with their individual grid companies 
         periodically and believe that adequate allowance for doubtful accounts has been made 
         in the financial statements. For accounts receivable arising from coal and chemical
         product sales, the Group assesses the credit quality of the customers, taking into 
         account their financial positions, past experience and other factors. It will also
         collect advanced payments from their customers. The Group performs periodic credit
         evaluations of its customers and believes that adequate allowance for doubtful debts
         has been made in the financial statements. The Group does not hold any collateral as
         security for all the receivables.

         At 31 December 2010, accounts and notes receivable due from the top five debtors 
         amounted to RMB4,604,734 thousand (2009: RMB4,058,404 thousand), representing 56.44%
         (2009: 61.17%) of the total accounts and notes receivable. Except for accounts and
         notes receivable, the Group has no significant concentrations of credit risk.

         Other receivables primarily include amounts due from related parties while all 
         long-term entrusted loans and short-term entrusted loans are lent to related parties.
         The Group assesses the credibility of the related parties by reviewing their
         operating results and gearing ratios periodically.

    (d)  Liquidity risk

         Prudent liquidity risk management implies maintaining sufficient cash and cash 
         equivalents, the availability of funding from an adequate amount of committed credit
         facilities and the ability to close out market positions. Due to the dynamic nature
         of the underlying businesses, the Group aims to maintain flexibility in funding by
         maintaining availability under committed credit facilities.

         The Group monitors the cash flow rolling forecasts of the Group's undrawn borrowing
         facility and cash and cash equivalents available as at each month end in meeting its
         liabilities.

         The maturity analysis of the Group's financial liabilities is as follows:



                                                 Less than     Between 1     Between 2    
                                                    1 year   and 2 years   and 5 years   Over 5 years
                                                   RMB'000       RMB'000       RMB'000        RMB'000
            
         At 31 December 2010            
           Long-term loans                      14,470,442    19,198,585    31,355,750     59,031,042
           Long-term bonds                              --            --     3,000,000      3,000,000
           Finance lease payables                  536,556       544,434     2,102,055      2,535,871
           Other long-term liabilities, 
            excluding finance lease payables        76,468        24,987         9,000             --
           Accounts payable and accrued
            liabilities                         18,930,066            --            --             --
           Short-term loans                     19,374,828            --            --             --
           Interest payables for loans           6,772,063     5,174,062    14,162,498     16,722,868
           Interest payables for bonds             282,000       282,000       555,000        750,000
            
         At 31 December 2009            
           Long-term loans                       6,842,438    19,699,203    39,380,101     40,427,241
           Long-term bonds                              --            --     3,000,000      3,000,000
           Finance lease payables                  685,299       687,859     1,678,151      2,183,695
           Other long-term liabilities, 
            excluding finance lease payables        28,803        35,837        15,360             --
           Accounts payable and accrued 
            liabilities                         14,040,020            --            --             --
           Short-term loans                     19,569,023            --            --             --
           Interest payables for loans           5,922,244     4,919,332    11,545,778      9,137,461
           Interest payables for bonds             282,000       282,000       837,000        750,000



    (e)  Interest rate risk

         As the Group has no significant interest-bearing assets except for bank deposits, the
         Group's operating cash flows are substantially independent of changes in market interest 
         rates.

         Most of the bank deposits are maintained in the savings and fixed deposits accounts in the
         PRC. The interest rates are regulated by the People's Bank of China while the Group closely
         monitors the fluctuation on such rates periodically. As the average interest rates applied
         to the deposits are relatively low, the directors are of the opinion that the Group is not
         exposed to any significant interest rate risk for these assets held as at 31 December 2010
         and 2009.

         The Group's exposure to interest rate risk arises from its loans. Certain loans bear 
         interests at variable rates varied with the then prevailing market condition, thus exposing
         the Group to cash flow interest rate risk. The Group analyses interest rate exposures on a
         dynamic basis. Various scenarios are simulated taking into consideration refinancing, 
         renewal of existing positions and alternative financing.

         At 31 December 2010, if interest rates on RMB, HKD and USD denominated loans had been 50 
         basis points (2009: 50 basis points) lower respectively with all other variables held 
         constant, consolidated profit after tax for the year would have been RMB503,604 thousand
         (2009: RMB366,429 thousand), RMB2,311 thousand (2009: RMB1,980 thousand) and RMB4,275 
         thousand (2009: RMB3,219 thousand) higher, respectively, arising as a result of a decrease
         in interest expense on the loans. If interest rates on RMB, HKD and USD denominated loans 
         had been 50 basis points (2009: 50 basis points) higher respectively with all other 
         variables held constant, consolidated profit after tax for the year would have been 
         RMB503,604 thousand (2009: RMB366,429 thousand), RMB2,311 thousand (2009: RMB1,980 
         thousand) and RMB4,275 thousand (2009: RMB3,219 thousand) lower, respectively, arising as
         a result of an increase in interest expense on the loans.

    (f)  Categories of financial instruments at 31 December 2010

                                                                              2010          2009
                                                                           RMB'000       RMB'000

         Financial assets:
         Loans and receivables (including cash and cash equivalents)    12,337,868     9,082,035
         Available-for-sale investments                                  2,304,158     1,339,829

         Financial liabilities:
         Financial liabilities at amortised cost                       172,374,990   150,159,218
 

    (g)  Fair values

         Except as disclosed in notes 21, 32 and 33 to the financial statements, the carrying
         amounts of the Group's financial assets and financial liabilities as reflected in the
         consolidated statement of financial position approximate their respective fair values.

         The following disclosures of fair value measurements use a fair value hierarchy which 
         has 3 levels: 

         Level 1:   quoted prices (unadjusted) in active markets for identical assets or 
                    liabilities.

         Level 2:   inputs other than quoted prices included within Level 1 that are observable
                    for the asset or liability, either directly (i.e. as prices) or indirectly 
                    (i.e. derived from prices).

         Level 3:   inputs for the asset or liability that are not based on observable market
                    data (unobservable inputs).


         Disclosures of level in fair value hierarchy at 31 December 2010:


                                                    Fair value measurement
         Description                                     using Level 1:

                                                          2010        2009
                                                       RMB'000     RMB'000

         Available-for-sale investments
           Equity securities                            91,043      18,700


6.  OPERATING REVENUE

    The Group's operating revenue which primarily represents sales of electricity, heat, coal 
    and chemical products and transportation service fees is as follows:


                                                          2010        2009
                                                       RMB'000     RMB'000

    Sales of electricity                            53,593,750  42,043,163
    Heat supply                                        539,680     382,982
    Sales of coal                                    2,823,291   5,143,707
    Transportation service fees                         28,444          --
    Sales of chemical products                       2,692,513     198,817
    Others                                             994,697     174,254
                                                    ----------  ----------
                                                    60,672,375  47,942,923
                                                    ==========  ==========


7.  OTHER GAINS


                                                          2010        2009
                                                       RMB'000     RMB'000

    Gain on disposals of available-for-sale
     investments                                         8,212      30,125
    Gain on disposals of associates                     93,811      74,460
    Gain on disposals of assets and
     liabilities held for sale                              --      40,000
    Gain on disposals of subsidiaries                       --       3,856
    Others                                                 354          --
                                                    ----------  ----------
                                                       102,377     148,441
                                                    ==========  ========== 


8.  SEGMENT INFORMATION

    Executive directors and certain senior management (including chief accountant) of the 
    Company perform the function as chief operating decision makers (collectively referred
    to as the "Senior Management"). The Senior Management reviews the internal reporting 
    of the Group in order to assess performance and allocate resources. Senior Management
    has determined the operating segments based on these reports.

    Senior Management considers the business from a product perspective. Senior Management
    primarily assesses the performance of power generation, coal and chemical separately. 
    Other operating activities primarily include sales of properties and cement products,
    transportation services, etc., and are included in "other segments".

    Senior Management assesses the performance of the operating segments based on a measure
    of profit before tax prepared under China Accounting Standards for Business Enterprises
    ("PRC GAAP").

    The accounting policies of the operating segments are the same as those described in 
    note 3 to the financial statements. Segment profits or losses do not include dividend
    income from listed available-for-sale investments and gain on disposals of 
    available-for-sale investments. Segment assets exclude deferred tax assets and 
    available-for-sale investments. Segment liabilities exclude the current tax liabilities
    and deferred tax liabilities. Sales between operating segments are marked to market or 
    contracted close to market price and have been eliminated at consolidation level. 
    Unless otherwise noted below, all such financial information in the segment tables 
    below is prepared under PRC GAAP.


    Information about reportable segment profit or loss, assets and liabilities:


             
                                                                                                     Total  
                                     Power                                         Total     discontinued  
                                generation        Coal    Chemical       Other   continuing    operations  
                                   segment     segment     segment    segments   operations (coal segment)       Total
                                   RMB'000     RMB'000     RMB'000     RMB'000      RMB'000       RMB'000      RMB'000

   Year ended 31 December 2010              

   Revenue from external 
    customers                   54,122,551   2,825,178   2,712,214   1,012,432   60,672,375            --   60,672,375
   Intersegment revenue             74,030  21,770,917          --      95,186   21,940,133            --   21,940,133
                               ---------------------------------------------------------------------------------------
   Segment profit                3,786,483     369,415     331,707     141,885    4,629,490            --    4,629,490
                               ---------------------------------------------------------------------------------------
   Depreciation and
    amortisation                 7,036,509     189,173     101,466     102,770    7,429,918            --    7,429,918
   Net gain on disposals of
    property, plant and
    equipment                       47,810          --          27      10,084       57,921            --       57,921
   Gain on disposals of
    investment properties               --          --          --      26,813       26,813            --       26,813
   Gain on disposals of 
    long-term investments               11          --          --      93,800       93,811            --       93,811
   Interest income                  29,211       1,347       1,670       5,987       38,215            --       38,215
   Interest expense              4,800,594     238,386      37,986     126,053    5,203,019            --    5,203,019
   Share of profits of
    associates                       7,653     474,427          --     109,179      591,259            --      591,259
   Shares of losses of jointly
    controlled entities            (14,384)     (2,657)         -—          -—      (17,041)           -—      (17,041)

   Income tax expense              715,456      87,872      83,219      57,906      944,453            --      944,453
                               ---------------------------------------------------------------------------------------


   Year ended 31 December 2009              
              
   Revenue from external
    customers                   42,553,948   5,190,158     198,817          --   47,942,923            --   47,942,923
   Intersegment revenue              5,160   4,824,816          --          --    4,829,976            --    4,829,976
                               ---------------------------------------------------------------------------------------
   Segment profit, as restated   2,572,761     213,915      20,174     146,553    2,953,403        40,000    2,993,403
                               ---------------------------------------------------------------------------------------
   Depreciation and
    amortisation, as restated    7,473,828      48,074       9,426          --    7,531,328            --    7,531,328
   Net gain on disposals of
    property, plant and
    equipment                       32,692          --          --          --       32,692            --       32,692
   Gain on disposals of
    long-term investments           78,316          --          --      30,125      108,441            --      108,441
   Gain on disposals of
    assets and liabilities
    held for sale                       --          --          --          --           --        40,000       40,000
   Impairment of property, 
    plant and equipment, as
    restated                        80,473          --          --          --       80,473            --       80,473
   Allowance for inventories,
    as restated                     14,667          --          --          --       14,667            --       14,667
   Interest income                  26,079       1,739       5,306          --       33,124            --       33,124
   Interest expense              3,997,440      45,876          --          --    4,043,316            --    4,043,316
   Share of (losses)/profits
    of associates                  (29,167)    286,125        (359)    115,523      372,122            --      372,122
   Shares of losses of
    jointly controlled
    entities                       (60,366)    (18,622)         --          --      (78,988)           --      (78,988)
   Income tax expense/
    (credit), as restated          640,512      (4,375)     (7,475)         --      628,662            --      628,662
                                ---------------------------------------------------------------------------------------


   At 31 December 2010              
              
   Segment assets              152,509,810  16,058,293  39,345,040  10,625,419  218,538,562            --  218,538,562
   Including:              
     Investments in
      associates                   490,467   1,682,565          --   2,447,088    4,620,120            --    4,620,120
     Investments in 
      jointly controlled
      entities                   1,693,442     845,959          --          --    2,539,401            --    2,539,401
     Additions to
      non-current assets
      (other than 
      financial assets
      and deferred tax
      assets)                   22,657,532   1,191,307  10,084,264     148,405   34,081,508            --   34,081,508
                               ---------------------------------------------------------------------------------------
   Segment liabilities         134,105,377  10,067,614  29,220,166   3,473,751  176,866,908            --  176,866,908
                               ---------------------------------------------------------------------------------------

   At 31 December 2009              

   Segment assets, as
    restated                   148,230,130  13,517,801  25,056,663   1,923,390  188,727,984            --  188,727,984
   Including:              
     Investments in
      associates                   484,763   2,694,556       2,278     602,260    3,783,857            --    3,783,857
     Investments in
      jointly controlled
      entities                     695,825     846,237          --          --    1,542,062            --    1,542,062
     Additions to 
      non-current assets
      (other than 
      financial assets
      and deferred tax
      assets)                   22,960,322   1,759,230   7,743,357     100,000   32,562,909            --   32,562,909
                               ---------------------------------------------------------------------------------------
   Segment liabilities         128,519,824   7,877,910  19,983,705          --  156,381,439            --  156,381,439
                                --------------------------------------------------------------------------------------



    Reconciliations of reportable segment revenue, profit or loss, assets, liabilities and
    other material items:

                                                                        2010            2009
                                                                     RMB'000         RMB'000
                                                                                   (restated)
    
    Revenue    
      Total revenue of reportable segments                        82,612,508      52,772,899
      Elimination of intersegment revenue                        (21,940,133)     (4,829,976)
                                                                -------------   -------------
    Consolidated revenue                                          60,672,375      47,942,923
                                                                =============   =============
    Profit or loss    
      Total profit or loss of reportable segments                  4,629,490       2,993,403
      Gain on disposals of available-for-sale investments              8,212              --
      Dividend income from available-for-sale investments                 40             200
      Elimination of intersegment profits                            (13,861)          4,851
      IFRS adjustment on reversal of general provision on
       mining funds                                                  107,273         163,109
      Other IFRS adjustments                                         (30,854)        (30,084)
                                                                -------------   -------------
    Consolidated profit before tax                                 4,700,300       3,131,479
                                                                =============   =============
    Assets    
      Total assets of reportable segments                        218,538,562     188,727,984
      Deferred tax assets                                            944,269         739,868
      Available-for-sale investments                                  91,043          18,700
      Elimination of intersegment assets                          (8,818,003)     (7,498,008)
      Reclassification of non-income taxes recoverable             2,022,816       1,991,030
      IFRS adjustment on reversal of general provision on
       mining funds                                                   82,095          83,291
      Other IFRS adjustments                                          54,553          84,948
                                                                -------------   -------------
    Consolidated total assets                                    212,915,335     184,147,813
                                                                =============   =============
    Liabilities    
      Total liabilities of reportable segments                  (176,866,908)   (156,381,439)
      Current tax liabilities                                       (339,967)        (48,359)
      Deferred tax liabilities                                      (414,377)       (286,600)
      Elimination of intersegment liabilities                      5,186,413       7,369,035
      Reclassification of non-income taxes recoverable            (2,022,816)     (1,991,030)
      Other IFRS adjustments                                         (24,849)        (37,188)
                                                                -------------   -------------
    Consolidated total liabilities                              (174,482,504)   (151,375,581)
                                                                =============   =============



    Other material items

                                                                                                 Total per 
                                                                                              consolidated
                                                                                              statement of
                                                              IFRS adjustment                    financial
                                                                  on reversal                   position /
                                       Total of                    of general                 statement of 
                                     reportable  Elimination of  provision on     Other IFR  comprehensive
                                       segments    intersegment  mining funds   adjustments         income
                                        RMB'000         RMB'000       RMB'000       RMB'000        RMB'000


    Year ended 31 December 2010

    Share of profits of associates      591,259              --       126,972            --        718,231
    Shares of (losses)/profits of
     jointly controlled entities        (17,041)             --        18,145            --          1,104
    Income tax expense                  944,453         (60,294)       (9,389)       (3,415)       871,355
                                      ---------------------------------------------------------------------
    Year ended 31 December 2009

    Share of profits of associates      372,122              --        89,990            --        462,112
    Shares of losses of jointly
     controlled entities                (78,988)             --        26,303            --        (52,685) 
    Income tax expense, as
     restated                           628,662         (21,545)       11,703        (3,894)       614,926
                                      ---------------------------------------------------------------------
    At 31 December 2010

    Investments in associates         4,620,120              --       (28,282)           --      4,591,838
    Investments in jointly
     controlled entities              2,539,401              --       110,377            --      2,649,778
                                      ---------------------------------------------------------------------
    At 31 December 2009

    Investments in associates         3,783,857              --       (11,320)           --      3,772,537
    Investments in jointly
     controlled entities              1,542,062              --        94,612            --      1,636,674
                                      ---------------------------------------------------------------------



    Geographical information (under IFRS):

    During the years ended 31 December 2010 and 2009, all revenues from external customers are
    generated domestically. At 31 December 2010, non-current assets (excluding financial assets
    and deferred tax assets) amounted to RMB189,360,741 thousand (2009, as restated: 
    RMB165,092,040 thousand) and RMB47,444 thousand (2009: RMB84,348 thousand) are located in
    the PRC and foreign countries, respectively.

    In presenting the geographical information, revenue is based on the locations of the customers.


    Revenue from major customers:

                                                     2010           2009
                                                  RMB'000        RMB'000

    Power generation segment

    North China Grid Company Limited           17,948,672     17,088,967
    State Grid Corporation of China             5,495,123      5,405,739
    Guangdong Power Grid Corporation            4,822,035      2,741,184


9.  FINANCE COSTS



                                                     2010           2009
                                                  RMB'000        RMB'000

    Interest expense on:       
      Short-term bank loans                       844,812      1,040,391
      Other short-term loans                      194,894        157,244
      Short-term entrusted loans                      361          2,651
      Long-term bank loans      
        - Wholly repayable within five years    1,376,004      1,734,212
        - Not wholly repayable within five
           years                                4,283,599      2,997,829
      Other long-term loans      
        - Wholly repayable within five years      211,696        316,311
        - Not wholly repayable within five
           years                                   24,674         17,993
      Long-term entrusted loan      
        - Wholly repayable within five years           --          1,668
      Short-term bonds                                 --        124,215
      Long-term bonds                             283,474        165,541
      Finance leases                              190,243        240,162
      Acquisitions of property, plant and
       equipment by instalments                     3,354          8,515
      Discounted notes receivable                  50,092         35,423
                                               -----------    -----------
    Total borrowing costs                       7,463,203      6,842,155
    Amount capitalised                         (2,083,847)    (2,798,839)
                                               -----------    -----------
                                                5,379,356      4,043,316
      
    Exchange gain, net                            (28,069)          (262)
    Loan commitment fees                               --         23,865
    Others                                         22,050         43,638
                                               -----------    -----------
                                                5,373,337      4,110,557
                                               ===========    ===========

    Borrowing costs on funds borrowed generally are capitalised at a rate of 5.33% (2009: 5.52%) 
    per annum.



10. INCOME TAX EXPENSE



                                                     2010           2009
                                                  RMB'000        RMB'000
                                                               (restated)
    
    Current tax - PRC Enterprise Income Tax    
      Provision for the year                    1,125,789        652,055
      (Over)/under-provision in prior years          (833)        59,809
                                               -----------    -----------
                                                1,124,956        711,864
                                               -----------    -----------
    Deferred tax (note 35)                       (253,601)       (96,938)
                                               -----------    -----------
                                                  871,355        614,926
                                               ===========    ===========

    The Company and its subsidiaries, other than as stated below, are 
    generally subject to PRC Enterprise Income Tax statutory rate of 25% 
    (2009: 25%).


    (i)    Pursuant  to document Guo Ban Fa [2001] 73 issued by the State Council of the PRC (the 
           "State Council") and document Cai Shui [2001] 202 issued by the State Administration 
           of Taxation of the PRC, certain subsidiaries set up in the western area of the PRC and 
           engaged in a business encouraged by the State have been granted a tax concession to pay
           PRC Enterprise Income Tax at a preferential rate of 15% from 2001 to 2010.

    (ii)   As newly set up domestic invested enterprises engaged in power generation in the western
           area of the PRC, certain subsidiaries are exempted from PRC Enterprise Income Tax during
           the first and second years of operation and have been granted a tax concession to pay 
           PRC Enterprise Income Tax at 50% of the preferential rate of 15% from the third to fifth
           year of operation. This preferential income tax treatment will expire from 31 December 
           2010 to 31 December 2012.

    (iii)  Pursuant to document Guo Shui Han [2006] 804 issued by the Yunnan Provincial Office of 
           the State Administration of Taxation, a subsidiary of the Company, as a newly set up 
           domestic invested enterprise engaged in power generation in the western area of the PRC,
           started to enjoy the exemption from PRC Enterprise Income Tax during the first and second
           years of operation and the grant of a tax concession to pay PRC Enterprise Income Tax at
           50% of the preferential rate of 15% from the third to fifth year of operation since the 
           year 2007.

    (iv)   Pursuant to document Cai Shui Zi [2006] 88 issued by the Ministry of Finance of the PRC
           (the "MOF"), a subsidiary of the Company, being a high and new technology industrial 
           development enterprise set up in the high and new technology industrial development zone 
           approved by the State Council, and as approved by Tax Bureau of Beijing Fengtai District, 
           is exempted from PRC Enterprise Income Tax in the first two operating years and then 
           applies 15% being the preferential rate from the third year, counting from the first year
           when this subsidiary starts to make profit.

    (v)    A subsidiary of the Company set up in Hong Kong is subject to Hong Kong Profits Tax
           levied at 16.5% (2009: 16.5%).

    (vi)   A subsidiary of the Company set up in the British Virgin Islands is subject to local 
           income tax levied at 0% (2009: 0%).

    (vii)  As a newly set up foreign invested enterprise engaged in power generation in the western 
           area of the PRC approved by the local tax authority, a subsidiary of the Company is 
           exempted from PRC Enterprise Income Tax during the first and second years of operation
           and has been granted a tax concession to pay PRC Enterprise Income Tax at 50% of the 
           preferential rate of 15% from the third to fifth year of operation since the year 2008.

    (viii) Pursuant  to documents Cai Shui [2008] 46 and [2008] 116 issued by the MOF, certain 
           subsidiaries are exempted from PRC Enterprise Income Tax during the first three years of
           operation commencing from the year of assessment in which the first sale transaction is
           reported and have been granted a tax concession to pay PRC Enterprise Income Tax at 50% 
           of the statutory rate of 25% from the fourth to sixth year of operation in respect of 
           their operating profit derived from investments in new wind power generation projects 
           approved by government investment task forces after 1 January 2008. This preferential tax
           treatment will expire after 31 December 2014.


    The reconciliation between the income tax expense and the product of profit before tax multiplied
    by the PRC Enterprise Income Tax rate is as follows:



                                                                               2010           2009
                                                                            RMB'000        RMB'000
                                                                                         (restated)

    Profit before tax                                                     4,700,300      3,131,479
      
    Tax at the domestic income tax rate of 25% (2009: 25%)                1,175,075        782,870
    Tax effect of income that is not taxable                               (137,611)       (45,903)
    Tax effect of expenses that are not deductible                           24,769         22,841
    Tax effect of utilisation of tax losses not previously recognised        (5,078)          (822)
    Tax effect of temporary differences not recognised                      155,186        118,723
    Over-provision in prior years and others                                   (833)       (12,150)
    Tax effect of tax concession                                           (350,486)      (249,018)
    Others                                                                   10,333         (1,615)
                                                                         -----------    -----------
    Income tax expense                                                      871,355        614,926
                                                                         ===========    ===========


11. PROFIT FOR THE YEAR

    The Group's profit for the year is stated after charging/(crediting) the following:



                                                                               2010           2009
                                                                            RMB'000        RMB'000
                                                                                         (restated)
      
      
    Auditor's remuneration                                                   11,800         19,811
    Acquisition-related costs (included in operating costs)                   7,860             --
    Amortisation of deferred income                                         (48,238)       (40,131)
    Amortisation of intangible assets (included in operating costs)          23,409          6,637
     Cost of major inventories sold and consumed
      - Fuel                                                             34,837,477     27,007,813
      - Spare parts and consumable supplies                                 589,106        500,029
    Rental income generated from investment properties                       (9,260)            --
    Dividend income from available-for-sale investments      
      - Listed investments                                                     (450)          (200)
      - Unlisted investments                                                 (8,877)          (905)
    Net gains on disposals of property, plant and equipment                 (58,867)       (32,692)
    Gain on disposals of investment properties                              (26,813)            --
    Reversal of allowance for accounts receivable                              (130)            --
    Reversal of allowance for other receivables                             (41,685)            --
    Allowance for inventories (included in operating costs)                      --         14,667
    Impairment losses on property, plant and equipment (included
     in operating costs)                                                         --         80,473
    Staff costs excluding directors' and supervisors' emoluments      
      - Salaries and welfares                                             1,416,413      1,314,718
      - Retirement benefits                                                 229,138        185,731
      - Housing benefits                                                    168,102        151,802
      - Other costs                                                         234,135        169,980



12. DIRECTORS', SUPERVISORS' AND EMPLOYEES' EMOLUMENTS

    The emoluments of each director and supervisor were as follows:



                                              Basic            
                                       salaries and            Retirement      Other   
                                 Fees    allowances     Bonus    Benefits   benefits     Total
                              RMB'000       RMB'000   RMB'000     RMB'000    RMB'000   RMB'000

    Name of director                     

    Zhai Ruoyu       (i)           --            --        --          --         --        --
    Liu Shunda       (ii)          --            --        --          --         --        --
    Cao Jingshan     (iii)         --           176       430          44         17       667
    Hu Shengmu       (iii)         --            --        --          --         --        --
    Fang Qinghai     (iii)         --            --        --          --         --        --
    Zhou Gang        (iii)         --           175       319          41         17       552
    Liu Haixia       (iii)         --            --        --          --         --        --
    Guan Tiangang    (iii)         --            --        --          --         --        --
    Su Tiegang       (iii)         --            --        --          --         --        --
    Ye Yonghui       (iii)         --            --        --          --         --        --
    Li Gengsheng     (iii)         --            --        --          --         --        --
    Xie Songlin      (i)           --            --        --          --         --        --
    Yu Changchun     (i)           --            --        --          --         --        --
    Liu Chaoan       (i)           --            --        --          --         --        --
    Li Hengyuan      (iii)         75            --        --          --         --        75
    Xia Qing         (i)           --            --        --          --         --        --
    Li Yanmeng       (ii)          75            --        --          --         --        75
    Zhao Zunlian     (ii)          75            --        --          --         --        75
    Zhao Jie         (ii)          75            --        --          --         --        75
    Jiang Guohua     (ii)          75            --        --          --         --        75
                              ---------------------------------------------------------------- 
                                  375           351       749          85         34     1,594
                              ----------------------------------------------------------------
    Name of supervisor 

    Fu Guoqiang      (iii)         --            --        --          --         --        --
    Qiao Xinyi       (iii)         --           183       307          45         17       552
    Zhang  Xiaoxu    (iii)         --            --        --          --         --        --
    Guan Zhenquan    (iii)         --           164       195          37         17       413
                              ----------------------------------------------------------------
                                   --           347       502          82         34       965
                              ----------------------------------------------------------------
    Total for 2010                375           698     1,251         167         68     2,559
                              ================================================================

    Notes:   (i)     Retired on 19 August 2010.               
             (ii)    Appointed on 19 August 2010.               
             (iii)   Re-appointed on 19 August 2010.               



                                              Basic            
                                       salaries and            Retirement      Other   
                                 Fees    allowances     Bonus    Benefits   benefits     Total
                              RMB'000       RMB'000   RMB'000     RMB'000    RMB'000   RMB'000

    Name of director                     
                  
    Zhai Ruoyu                     --            --        --          --         --        --
    Cao Jingshan                   --           171       406           5         15       597
    Hu Shengmu                     --            --        --          --         --        --
    Fang Qinghai                   --            --        --          --         --        --
    Zhou Gang                      --           156       335           5         15       511
    Liu Haixia                     --            --        --          --         --        --
    Guan Tiangang                  --            --        --          --         --        --
    Su Tiegang                     --            --        --          --         --        --
    Ye Yonghui                     --            --        --          --         --        --
    Li Gengsheng                   --            --        --          --         --        --
    Xie Songlin                    75            --        --          --         --        75
    Yu Changchun                   75            --        --          --         --        75
    Liu Chaoan                     75            --        --          --         --        75
    Li Hengyuan                    75            --        --          --         --        75
    Xia Qing                       75            --        --          --         --        75
                              ----------------------------------------------------------------
                                  375           327       741          10         30     1,483
                              ----------------------------------------------------------------                    
    Name of supervisor                     
                     
    Zhang Jie                      --           159       335           5         15       514
    Fu Guoqiang                    --            --        --          --         --        --
    Shi Xiaofan                    --            29        --          --         --        29
    Qiao Xinyi                     --           159       335           5         15       514
    Zhang Xiaoxu                   --            --        --          --         --        --
    Guan Zhenquan                  --           133       217           5         15       370
                              ----------------------------------------------------------------
                                   --           480       887          15         45     1,427
                              ----------------------------------------------------------------
    Total for 2009                375           807     1,628          25         75     2,910
                              ================================================================



    There was no arrangement under which a director or a supervisor waived or agreed to 
    waive any emoluments during the years ended 31 December 2010 and 2009.

    The five highest paid individuals in the Group during the year included 1 (2009: 1) 
    director and 1 (2009: 2) supervisor(s) whose emoluments are reflected in the analysis
    presented above. The emoluments of the remaining 3 (2009: 2) individuals are set out
    below:


                                                         2010           2009
                                                      RMB'000        RMB'000
		
    Basic salaries and allowances                         543            314
    Bonus                                                 943            670
    Retirement benefits                                   126             10
    Other benefits                                         51             30
                                                      -------        -------
                                                        1,663          1,024
                                                      =======        =======


    The emoluments of the five highest paid individuals in the Group fell within the 
    following band:


                                                         2010           2009

    Nil to RMB850,900 (equivalent to HKD1,000,000)          5              5


    During the years ended 31 December 2010 and 2009, no emoluments were paid by the
    Group to any of the directors or the supervisors or the highest paid individuals 
    as an inducement to join or upon joining the Group or as compensation for loss of
    office.
 

13. EMPLOYEE BENEFITS

    Retirement benefits

    The Group is required to make specific contributions to the state-sponsored 
    retirement plan at a rate of 20% (2009: 20%) of the specified salaries of the PRC 
    employees. The PRC government is responsible for the pension liability to the 
    retired employees. The PRC employees of the Group are entitled to a monthly 
    pension upon their retirements.

    In addition, the Group has implemented a supplementary defined contribution 
    retirement scheme. Under this scheme, the employees of the Group make a 
    specified contribution based on their service duration. The Group is required to
    make a contribution equal to 2 to 3 times of the staff's contributions. The Group
    may, at their discretion, provide additional contributions to the retirement fund
    depending on the operating results of the year. The employees will receive the 
    total contributions and any returns thereon, upon their retirements.

    The total retirement costs incurred by the Group during the year ended 31 December
    2010 pursuant to these arrangements amounted to RMB284,816 thousand (2009: 
    RMB230,794 thousand).

    Housing benefits

    Apart from the housing benefits and monetary subsidies as stated in note 22 to the
    financial statements, in accordance with the PRC housing reform regulations, the
    Group is required to make contributions to the state-sponsored housing fund at 
    rates 10% to 20% (2009: 10% to 20%) of the specified salaries of the PRC employees.
    At the same time, the employees are required to make a contribution based on 
    certain percentages. The employees are entitled to claim the entire sum of the fund
    under certain specified withdrawal circumstances. The Group has no further 
    obligations for housing benefits beyond the contributions made above. During the 
    year ended 31 December 2010, the Group provided RMB168,980 thousand (2009: 
    RMB138,300 thousand) to the fund.


14. DIVIDENDS


                                                                2010        2009
                                                             RMB'000     RMB'000

    Proposed final of RMB0.07 (2009: RMB0.07) per share      861,703     861,703


    Pursuant to the PRC Enterprise Income Tax Law, the Company is required to withhold 
    10% PRC Enterprise Income Tax when it distributes dividends to its non-PRC resident
    enterprise shareholders.


15. EARNINGS PER SHARE

    Basic earnings per share

    The calculation of basic earnings per share attributable to owners of the Company 
    is based on the profit for the year attributable to owners of the Company of 
    RMB2,569,734 thousand (2009, as restated: RMB1,536,554 thousand) and the weighted
    average number of ordinary shares of 12,192,421 thousand (2009: 11,780,038 thousand) 
    in issue during the year.

    Diluted earnings per share

    No diluted earnings per share are presented as the Company did not have any dilutive
    potential ordinary shares during the years ended 31 December 2010 and 2009.
 

16. PROPERTY, PLANT AND EQUIPMENT



                                       Buildings   Electricity            
                               Land          and       utility  Transportation              Construction   
                         use rights   structures        plants      facilities     Others    in progress         Total
                            RMB'000      RMB'000       RMB'000         RMB'000    RMB'000        RMB'000       RMB'000

    Cost                     

    At 1 January 2009, 
     as previously 
     stated                      --   31,017,565    69,785,245       1,358,857    660,586     58,989,499   161,811,752
    Adoption of
     amendment to
     IAS17                1,380,799           --            --              --         --             --     1,380,799
                         ----------------------------------------------------------------------------------------------
    At 1 January 2009,
     as restated          1,380,799   31,017,565    69,785,245       1,358,857    660,586     58,989,499   163,192,551
    Transfer in/(out)       230,605    8,621,029    14,404,954         748,093    501,503    (24,582,688)      (76,504)
    Additions                35,394      178,599        29,578          64,597    180,710     27,382,370    27,871,248
    Acquisition of
     subsidiaries                --      630,114     3,172,662          12,377      7,224         84,519     3,906,896
    Disposals                    --      (59,467)     (207,700)             --    (14,617)      (342,905)     (624,689)
    Disposal of
     subsidiaries                --           --            --              --        (90)      (244,346)     (244,436)
    Write-offs                 (243)          --            --              --         --             --          (243)
    Acquisition of an
     associate                   --           --            --              --         --     (1,850,935)   (1,850,935)
                         ----------------------------------------------------------------------------------------------
    At 31 December 2009
     and 1 January 2010,
     as restated          1,646,555   40,387,840    87,184,739       2,183,924  1,335,316     59,435,514   192,173,888
    Transfer in/(out)            --    8,684,099    18,959,387          40,208    984,385    (28,879,501)     (211,422)
    Additions               490,214      219,338       125,956         104,665     35,873     26,383,303    27,359,349
    Acquisition of
     subsidiaries             9,992    1,675,160       354,287          28,790     11,019        234,387     2,313,635
    Disposals                    --      (77,274)      (17,573)       (114,022)    (2,871)       (84,261)     (296,001)
    Write-offs                   --           --            --              --       (134)            --          (134)
                         ----------------------------------------------------------------------------------------------
    At 31 December 2010   2,146,761   50,889,163   106,606,796       2,243,565  2,363,588     57,089,442   221,339,315
                         ----------------------------------------------------------------------------------------------

    Accumulated
     depreciation and
     impairment losses                     

    At 1 January 2009,
     as previously
     stated                      --    4,644,010    21,707,723         342,691    296,925             --    26,991,349
    Adoption of 
     amendment to 
     IAS17                  110,890           --            --              --         --             --       110,890
                         ----------------------------------------------------------------------------------------------
    At 1 January 2009,
     as restated            110,890    4,644,010    21,707,723         342,691    296,925             --    27,102,239
    Charge for the year,
     as restated             12,156    1,406,684     5,925,864         149,719     73,532             --     7,567,955
    Impairment for the
     year, as restated           --           --        80,473              --         --             --        80,473
    Disposals                    --       (1,869)      (12,092)             --     (2,877)            --       (16,838)
                         ----------------------------------------------------------------------------------------------
    At 31 December 2009
     and 1 January 2010,
     as restated            123,046    6,048,825    27,701,968         492,410    367,580             --    34,733,829
    Charge for the year      32,726    1,631,857     5,385,519         182,148    186,980             --     7,419,230
    Disposals                    --      (26,736)      (16,810)         (2,589)    (1,274)            --       (47,409)
    Write-offs                   --           --            --              --       (105)            --          (105)
                         ----------------------------------------------------------------------------------------------
    At 31 December 2010     155,772    7,653,946    33,070,677         671,969    553,181             --    42,105,545
                         ----------------------------------------------------------------------------------------------
    Carrying amount                     

    At 31 December 2010   1,990,989   43,235,217    73,536,119       1,571,596  1,810,407     57,089,442   179,233,770
                         ==============================================================================================
    At 31 December 2009,
     as restated          1,523,509   34,339,015    59,482,771       1,691,514    967,736     59,435,514   157,440,059
                         ==============================================================================================



    During the year, depreciation expenses charged into operating costs and construction in 
    progress amounted to RMB7,376,954 thousand (2009, as restated: RMB7,523,537 thousand) and 
    RMB42,276 thousand (2009: RMB44,418 thousand), respectively.

    At 31 December 2010 the carrying amount of property, plant and equipment pledged as security
    for the Group's long-term loans amounted to RMB546,550 thousand (2009: RMB405,208 thousand).

    At 31 December 2010 the carrying amount of buildings and structures, electricity utility 
    plants, transportation facilities and construction in progress held by the Group under finance
    leases amounted to RMB706,068 thousand (2009: RMB420,070 thousand), RMB2,432,021 thousand 
    (2009: RMB2,683,303 thousand), RMB108,374 thousand (2009: Nil) and RMB555,375 thousand (2009: 
    RMB958,560 thousand) respectively.


    The Group's land use rights are analysed as follows:


                                                                2010        2009
                                                             RMB'000     RMB'000
    Outside Hong Kong:
      Long leases                                            231,435     196,775
      Medium-term leases                                   1,759,554   1,326,627
      Short leases                                                --         107
                                                           ---------   ---------
                                                           1,990,989   1,523,509
                                                           =========   =========


    In order to reflect the Group's financial position and operating results in a fairer and more
    appropriate manner so that the depreciation periods for property, plant and equipment is 
    brought closer to their real useful lives, the Group has made changes to the estimated useful 
    lives and estimated net salvage values of the property, plant and equipment pursuant to the
    accounting standards and other related accounting and tax regulations in combination with the 
    actual situation of the Group. The changes to the estimated useful lives and estimated net 
    salvage values of the property, plant and equipment were considered and approved at the 
    thirty-fifth meeting of the sixth session of the Board of the Directors held on 29 April 2010.
    These changes in accounting estimates reduced the Group's depreciation charges by 
    approximately RMB1.8 billion for the year ended 31 December 2010.
 

17. INVESTMENT PROPERTIES



                                                                         RMB'000

    Cost

    At 1 January 2009, 31 December 2009 and 1 January 2010                    --
    Acquisition of subsidiaries                                           16,649
    Transfer in                                                          211,422
    Disposals                                                            (11,792)

    At 31 December 2010                                                  216,279
                                                                        ---------
    Accumulated depreciation

    At 1 January 2009, 31 December 2009 and 1 January 2010                    --
    Charge for the year                                                    5,018
    Disposals                                                               (605)
                                                                        ---------
    At 31 December 2010                                                    4,413
                                                                        ---------
    Carrying amount

    At 31 December 2010                                                  211,866
                                                                        =========
    At 31 December 2009                                                       --
                                                                        =========


    The Group's investment properties are situated in the PRC and are held under medium-term 
    leases.

    At 31 December 2010, the Group's total future minimum lease payments under 
    non-cancellable operating leases of investment properties are receivable as follows:


                                                                2010        2009
                                                             RMB'000     RMB'000

    Within one year                                            6,670          --
    In the second to fifth years inclusive                    14,577          --
    After five years                                           9,000          --
                                                             -------     -------
                                                              30,247          --
                                                             =======     =======


18. INTANGIBLE ASSETS



                                             Mining     Resource   Technology    Computer
                               Goodwill      rights   use rights     know-how    software     Others       Total
                                RMB'000     RMB'000      RMB'000      RMB'000     RMB'000    RMB'000     RMB'000

    Cost

    At 1 January 2009           532,796     890,319       28,646      554,156      55,399         --   2,061,316
    Additions                        --          17           --           --      24,037         --      24,054
    Acquisition of
     subsidiaries                   949          --           --           --       1,823         --       2,772
    Transfer in/(out)                --     142,070           --      (65,566)         --         --      76,504
                               ----------------------------------------------------------------------------------
    At 31 December 2009
     and 1 January 2010         533,745   1,032,406       28,646      488,590      81,259         --   2,164,646
    Additions                        --          --        8,000      105,719      13,312         --     127,031
    Acquisition of
     subsidiaries                36,770     216,724        1,117        2,611       1,644     14,590     273,456
    Transfer out                     --          --           --           --      (9,975)        --      (9,975)
                               ----------------------------------------------------------------------------------
    At 31 December 2010         570,515   1,249,130       37,763      596,920      86,240     14,590   2,555,158
                               ----------------------------------------------------------------------------------
    Accumulated amortisation

    At 1 January 2009                --          --        9,511           --      20,335         --      29,846
    Amortisation for the year        --          --        3,665           --       8,299         --      11,964
                               ----------------------------------------------------------------------------------
    At 31 December 2009 and
     1 January 2010                  --          --       13,176           --      28,634         --      41,810
    Amortisation for the year        --       2,050        5,960          273       7,332      9,379      24,994
    Transfer out                     --          --           --           --      (9,975)        --      (9,975)
                               ----------------------------------------------------------------------------------
    At 31 December 2010              --       2,050       19,136          273      25,991      9,379      56,829
                               ----------------------------------------------------------------------------------
    Carrying amount

    At 31 December 2010         570,515   1,247,080       18,627      596,647      60,249      5,211   2,498,329
                               ==================================================================================
    At 31 December 2009         533,745   1,032,406       15,470      488,590      52,625         --   2,122,836
                               ==================================================================================



    Goodwill

    Goodwill acquired in a business combination is allocated, at acquisition, to the 
    cash-generating units ("CGUs") that are expected to benefit from that business 
    combination. Before recognition of impairment losses, the carrying amount of goodwill 
    had been allocated as follows:



                                                                2010        2009
                                                             RMB'000     RMB'000
      
    Power generation segment      
      Qinghai Datang International Zhiganglaka
       Hydropower Development Company Limited
       ("Zhiganglaka Company")                               273,795     273,795
      Jiangxi Datang International Xinyu Power
       Generation Company Limited ("Xinyu Power
       Company")                                             104,361     104,361
      Zhangjiakou Power Plant No. 2 generator                 33,561      33,561
      Datang Tongzhou Technology Company Limited
       ("Tongzhou Technology Company")                           949         949
      Inner Mongolia Datang International Hohhot
       Thermal Power Generation Company Limited
       ("Hohhot Thermal Company")                                902         902
      Yunnan Datang International Deqin 
       Hydropower Development Limited ("Datang
       Deqin")                                                    18          --
                                                             -------     -------
                                                             413,586     413,568
                                                             -------     -------
    Coal segment      
      Inner Mongolia Datang International 
       Zhunge'er Mining Company Limited 
       ("Zhunge'er Mining Company")                          120,177     120,177
      Inner Mongolia Baoli Coal Company Limited
       ("Baoli Company")                                      18,712          --
                                                             -------     -------
                                                             138,889     120,177
                                                             -------     -------
    Other segments      
      Yuneng (Group) Company Limited ("Yuneng
       Group")                                                18,040          --
                                                             -------     -------
                                                             570,515     533,745
                                                             =======     =======



    The recoverable amounts of the CGUs are determined based on value in use calculations. 
    The key assumptions used for the value in use calculations of power generation units 
    include the expected tariff rates, demands of electricity in specific regions where 
    these power plants are located and fuel cost. The key assumptions used for the value 
    in use calculations of coal mining entity include the expected coal price and annual 
    production capacity. These key assumptions are based on past performance and 
    expectations on market development. The Group estimates discount rates using pre-tax
    rates that reflect current market assessments of the time value of money and the risks
    specific to the CGUs.

    The Group prepares cash flow forecasts derived from the most recent financial budgets
    approved by the directors for a period covering no more than five years (the "Periods
    Covered"). The Group expects cash flows beyond the respective forecast periods below 
    will be similar to that of last year of respective forecast based on existing 
    production capacity.

    The Periods Covered and discount rates used in respective value in use calculations 
    are as follows:


                                                          Periods      Discount
                                                          Covered    rates used

    Zhiganglaka Company                                   5 years         7.49%
    Xinyu Power Company                                   2 years         8.06%
    Zhunge'er Mining Company                              3 years        20.58%
    Others                                            1 - 5 years  6.16%-10.18%


    Based on the assessments, the Group believes that there is no impairment of goodwill 
    at 31 December 2010 and 2009.
 

19. INVESTMENTS IN ASSOCIATES


                                                                2010        2009
                                                             RMB'000     RMB'000

    Unlisted investments:
    Share of net assets                                    4,591,838   3,772,537



    Details of the Group's associates at 31 December 2010 are as follows:



                                           Place of          Registered            
                                           incorporation/      and paid     Percentage of        
    Name                                   registration      up capital    equity interest     Principal activities
                                                                RMB'000   Direct    Indirect    
                                                                 unless            
                                                              otherwise            
                                                                 stated            

    North China Electric Power Research    PRC                  100,000      30%          --   Power related
     Institute Company Limited                                                                 technology services
                    
    Tongfang Investment Company Limited    PRC                  550,000      36%          --   Project investments and
                                                                                               management
                    
    Tongmei Datang Tashan Coal             PRC                2,072,540      28%          --   Coal construction and
     Mine Company Limited                                                                      mining
                    
    Tongmei Datang Tashan Power            PRC                  410,000      40%          --   Power generation
     Generation Company Limited                    
                    
    Tangshan Huaxia Datang Power           PRC                   20,000      30%          --   Power fuel trading
     Fuel Company Limited                    
                    
    China Datang Group Finance Company     PRC                1,600,000      20%          --   Financial services
     Limited ("Datang Finance") (i)                    
                    
    Inner Mongolia Bazhu Railway           PRC                  100,000      20%          --   Railway and highway
     Company Limited                                                                           construction and
                                                                                               operational management
                                                                                               (pre-construction)
                    
    CNNC Liaoning Nuclear Power Co., Ltd.  PRC                  100,000      20%          --   Nuclear power plant
                                                                                               construction and
                                                                                               operations

    Liaoning Diaobingshan Coal Gangue      PRC                  603,400      40%          --   Power generation
     Power Generation Co., Ltd.                    
     ("Diaobingshan Power Company")                    

    Inner Mongolia Xiduo Railway           PRC               Registered      34%          --   Railway transportation
     Company Limited                                           capital:                        services
                                                             3,535,789;            
                                                                paid-up
                                                               capital:            
                                                              3,026,913            

    COSCO Datang Shipping Company          PRC                  100,000      45%          --   Cargo shipping
     Limited                    

    Shantou Fengsheng Power                PRC               Registered      41%          --   Power generation
     Generation Company Limited                                capital:
                                                                30,000;            
                                                                paid-up
                                                               capital:            
                                                                 18,200            

    Macro Technologies Inc.                Vietnam           USD150,000       --         35%   Electricity related
     (Vietnam) Limited                                                                         technical services

    Chongqin Panlong Pumped                PRC                   50,000       --         20%   Power development
     Storage Company Limited                    

    Chongqin Fuling Water Resources        PRC                  120,000       --         42%   Hydropower technology 
     Development Company Limited                                                               development, 
                                                                                               construction, 
                                                                                               management,
                                                                                               power generation and 
                                                                                               power supply

    Fujian Baima Harbor Railway            PRC                  150,000       --         33%   Railway transportation
     Spur Line Company Limited                    

    Jinzhou City Thermal Power             PRC                  145,000       --         26%   Heat supply
     Company Limited                    


    Note:

    (i)  Datang Finance is a non-bank financial institution.



    Summarised financial information in respect of the Group's associates is set out below:



                                                                 2010           2009
                                                              RMB'000        RMB'000

    At 31 December        

    Total assets                                           38,104,887     28,840,441
    Total liabilities                                     (24,266,193)   (17,364,221)
                                                          ------------   ------------
    Net assets                                             13,838,694     11,476,220
                                                          ============   ============    
    The Group's share of associates' net assets             4,591,838      3,772,537
                                                          ============   ============ 
    Year ended 31 December        

    Total revenue                                           9,599,931      7,702,033
                                                          ============   ============ 
    Total profit for the year                               2,585,808      1,794,967
                                                          ============   ============ 
    The Group's share of associates' profit for the year      718,231        462,112
                                                          ============   ============ 



20. INVESTMENTS IN JOINTLY CONTROLLED ENTITIES


                                                                 2010           2009
                                                              RMB'000        RMB'000

    Unlisted investments: 
    Share of net assets                                     2,649,778      1,636,674
                                                          ============   ============ 


    Details of the jointly controlled entities at 31 December 2010 are as follows:


                                    Place of         Registered            
                                    incorporation/     and paid      Percentage of        
    Name                            registration     up capital     equity interest     Principal activities
                                                        RMB'000   Direct     Indirect    

    Hebei Yuzhou Energy Multiple    PRC                 825,023      50%           --   Investment holding
     Development Company Limited                    
                    
    Kailuan (Group) Yuzhou          PRC                 812,254      34%          15%   Coal mining and sales
     Mining Company Limited                    
                    
    Inner Mongolia Huineng Datang   PRC                  50,000      40%           --   Coal mining and sales 
     Changtan Coal Mining                                                               (pre-construction) 
     Company Limited                    
                    
    Fujian Ningde Nuclear Power     PRC               1,900,000      44%           --   Nuclear power plant
     Company Limited                                                                    construction and 
                                                                                        operations
                                                                                        (under construction)



    Summarised financial information in respect of the Group's jointly controlled entities is set
    out below:


                                                                     2010           2009
                                                                  RMB'000        RMB'000

    At 31 December        
        
    Current assets                                              5,941,178      5,038,876
    Non-current assets                                         20,771,068     13,174,463
    Current liabilities                                       (10,169,992)   (12,515,944)
    Non-current liabilities                                   (10,382,329)    (1,767,199)
                                                              ------------   ------------
    Net assets                                                  6,159,925      3,930,196
                                                              ============   ============
    Proportionate shares of capital commitments                 2,701,533      3,432,915
                                                              ============   ============
    Year ended 31 December        
        
    Revenue                                                     4,492,671      1,899,509
                                                              ============   ============
    Expenses                                                   (3,836,804)    (2,012,964)
                                                              ============   ============



21. AVAILABLE-FOR-SALE INVESTMENTS


                                                                     2010           2009
                                                                  RMB'000        RMB'000

    Equity securities, at fair value Listed outside Hong Kong      91,043         18,700
    Unlisted equity securities, at cost                         2,213,115      1,321,129
                                                              ------------   ------------
                                                                2,304,158      1,339,829
                                                              ============   ============
    Market value of listed securities                              91,043         18,700
                                                              ============   ============


    The fair values of listed securities are based on current bid prices. Unlisted equity 
    securities with carrying amount of RMB2,213,115 thousand (2009: 1,321,129 thousand) was 
    carried at cost as they do not have a quoted market price in an active market and whose 
    fair value cannot be reliably measured.


22. DEFERRED HOUSING BENEFITS

    Pursuant to the "Proposal on Further Reform of Housing Policy in Urban Areas" of the State
    and the implementation schemes for staff quarters issued by the relevant provincial and 
    municipal governments, the Company implemented a scheme for selling staff quarters in 1999. 
    Under the scheme, the Company provides housing benefits to its staff to buy staff quarters
    from the Company at preferential prices. The offer price is determined based on their 
    length of services and positions pursuant to the prevailing local regulations. The deferred
    housing benefits represent the difference between the net book amount of the staff quarters
    sold and the proceeds collected from the employees, and are amortised over the estimated
    remaining average service lives of the relevant employees.

    During 2005 to 2007, the Company and some of its subsidiaries carried out another housing
    benefit scheme - "Monetary Housing Benefit Scheme" upon the approval from Housing Reform
    Office of the local government. Under the Monetary Housing Benefit Scheme, the Company and
    some of its subsidiaries provided monetary housing subsidies to those employees whose houses 
    did not meet the standard they should have enjoyed based on their length of services and 
    their positions and rankings. There is no such subsidy payment in year 2010 (2009: nil). 
    The benefits were amortised over the remaining average service life of the relevant
    employees.



                                                                                      RMB'000

    Cost

    At 1 January 2009, 31 December 2009, 1 January 2010 and 31 December 2010          662,532
                                                                                      -------
    Accumulated amortisation

    At 1 January 2009                                                                 469,063
    Charge for the year                                                                30,085
                                                                                      -------
    At 31 December 2009 and 1 January 2010                                            499,148
    Charge for the year                                                                30,854
                                                                                      -------
    At 31 December 2010                                                               530,002
                                                                                      -------
    Carrying amount

    At 31 December 2010                                                               132,530
                                                                                      =======
    At 31 December 2009                                                               163,384
                                                                                      =======


23. LONG-TERM ENTRUSTED LOANS TO ASSOCIATES

    At 31 December 2009, the long-term entrusted loans to associates carried interest rates at 
    4.86% to 5.56% per annum and there were neither pledges nor guarantees received on these 
    loans. At 31 December 2010, all the long-term entrusted loans to associates were repaid.


24. INVENTORIES


                                                     2010          2009
                                                  RMB'000       RMB'000
                                                              (restated)

    Raw materials                               2,352,979     1,337,039
    Finished goods                                915,437       503,471
    Others                                        743,297            --
                                                ---------     ---------
                                                4,011,713     1,840,510
                                                =========     =========


    The carrying amount of inventories pledged as security for banking facilities granted to 
    the Group amounted to RMB103,964 thousand (2009: Nil) (note 32).
 

25. ACCOUNTS AND NOTES RECEIVABLE

    Accounts and notes receivable of the Group primarily represent receivables from regional 
    or provincial grid companies for tariff revenue and coal sales customers and comprise the 
    following:


                                                     2010          2009
                                                  RMB'000       RMB'000

    Accounts receivable from third parties      7,966,699     6,459,139
    Notes receivables from third parties          190,185       140,273
    Accounts receivable from related parties        1,738        35,505
                                                ---------     ---------
                                                8,158,622     6,634,917
                                                =========     =========


    The Group usually grants credit period of approximately 1 month to local power grid 
    customers and coal purchase customers from the month end after sales and sale transactions
    made, respectively.

    The ageing analysis of accounts and notes receivable is as follows:


                                                     2010          2009
                                                  RMB'000       RMB'000

    Within one year                             8,013,428     6,447,885
    Between one to two years                      143,990       186,396
    Between two to three years                      1,096           636
    Over three years                                  108            --
                                                ---------     ---------
                                                8,158,622     6,634,917
                                                =========     =========


    At 31 December 2009, accounts and notes receivable amounted to RMB272,599 thousand were 
    pledged for certain loans as set out in note 32 to the financial statements. In addition,
    the Group also applied tariff collection rights in securing loans, for which details
    please refer to notes 32 and 39 to the financial statements.

    Reconciliation of allowance for accounts and notes receivables:


                                                     2010          2009
                                                  RMB'000       RMB'000

    At 1 January                                       --            --
    Acquisition of subsidiaries                     6,042            --
    Reversal of allowance                            (130)           --
                                                ----------    ----------
    At 31 December                                  5,912            --
                                                ==========    ==========


    At 31 December 2010, accounts and notes receivable of RMB145,194 thousand (2009: RMB187,032 
    thousand) were past due but not impaired. The major portion of the past due accounts and 
    notes receivable were due from certain local thermal power companies, and the directors 
    believe that such receivables can be recovered because such local thermal companies had no 
    recent history of default. The ageing analysis of these accounts and notes receivable is as
    follows:


                                                     2010          2009
                                                  RMB'000       RMB'000
        
    Between one to two years                      143,990       186,396
    Between two to three years                      1,096           636
    Over three years                                  108            --
                                                ----------    ----------
                                                  145,194       187,032
                                                ==========    ==========


26. PREPAYMENTS AND OTHER RECEIVABLES



                                                                        2010          2009
                                                                     RMB'000       RMB'000

    Prepayments        

    Prepayments for fuel and materials                               395,262     1,937,168
    Prepayments for construction                                      63,890        62,605
    Value added tax recoverable                                    1,914,234     1,883,613
    Prepayment for an investment (i)                                 350,000     1,289,000
    Other taxes recoverable                                           31,761        16,201
    Prepayments to related parties                                     1,324        71,073
    Others                                                           272,235        57,231
                                                                  -----------   -----------
                                                                   3,028,706     5,316,891
                                                                  -----------   -----------
    Other receivables        

    Advanced payments for construction                               411,569       438,945
    Receivables from disposals of property, plant and equipment       61,819       108,208
    Staff advances                                                    23,223        25,959
    Staff housing maintenance fund deposits                           25,153        25,576
    Receivables from sales of materials                               59,218        50,414
    Receivables from related parties                                  64,172       429,395
    Others                                                           472,508       183,716
                                                                  -----------   -----------
                                                                   1,117,662     1,262,213
    Allowance for doubtful debts                                     (44,823)       (4,203)
                                                                  -----------   -----------
                                                                   1,072,839     1,258,010
                                                                  -----------   -----------
                                                                   4,101,545     6,574,901
                                                                  ===========   ===========

    Note:

    (i)  At 31 December 2009, this represented prepayment for investment in Yuneng Group.



    Reconciliation of allowance for other receivables:


                                                                 2010         2009
                                                              RMB'000      RMB'000

    At 1 January                                                4,203        4,203
    Acquisition of subsidiaries                                88,273           --
    Reversal of allowance                                     (41,685)          --
    Amounts written off                                        (5,968)          --
                                                              --------     --------
    At 31 December                                             44,823        4,203
                                                              ========     ========


    At 31 December 2010, other receivables of RMB2,035 thousand (2009: RMB3,755 thousand) 
    were past due but not impaired. These relate to certain individually impaired 
    receivables which have been long outstanding without any repayment agreements in place
    or possibility of renegotiation. It was assessed that a portion of these receivables is
    expected to be recovered. The ageing analysis of these other receivables is as follows:


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Between two to three years                                     90        1,920
    Over three years                                            1,945        1,835
                                                              --------     --------
                                                                2,035        3,755
                                                              ========     ========


27. SHORT-TERM ENTRUSTED LOANS TO RELATED PARTIES


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Entrusted loans to ultimate parent company (i)                 --       17,000
    Entrusted loans to a jointly controlled entity (ii)       100,153           --
                                                              -------      -------
                                                              100,153       17,000
                                                              =======      =======

    Note:

    (i)  At 31 December 2009, the short-term entrusted loans to ultimate parent company carried
         interest rate at 1.44% per annum and there were neither pledges nor guarantees received 
         on these loans. At 31 December 2010, all such loans were repaid.

         The short-term entrusted loans to ultimate parent company were due within 1 year from 31
         December 2009.

    (ii) At 31 December 2010, the short-term entrusted loans to a jointly controlled entity 
         carried interest rate at 5.00% (2009: Nil) per annum and there were neither pledges nor
         guarantees received on these loans.

         The short-term entrusted loans to a jointly controlled entity are due within 1 year 
         (2009: Nil) from the end of the reporting period.


28. CASH AND CASH EQUIVALENTS


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Bank deposits                                           2,353,927    1,358,163
    Deposits with Datang Finance                            1,087,815      147,097
    Cash on hand                                                1,234        1,175
                                                            ---------    ---------
    Cash and cash equivalents                               3,442,976    1,506,435
                                                            =========    =========


    The carrying amounts of the Group's cash and cash equivalents are denominated in the following
    currencies:


                                                                 2010         2009
                                                              RMB'000      RMB'000

    RMB                                                     3,231,787    1,343,019
    USD                                                       210,613      163,124
    HKD                                                           442          152
    Euro ("EUR")                                                  126          140
    Singapore dollar ("SGD")                                        8           --
                                                            ---------    ---------
                                                            3,442,976    1,506,435
                                                            =========    =========


29. SHARE CAPITAL



                                                      Number of shares                            Amount        

                                        A shares  (i)  H shares  (i)        Total    A shares    H shares        Total
                                                 '000           '000         '000     RMB'000     RMB'000      RMB'000

  Registered, issued and fully paid:                         
  Shares of RMB1 (2009: RMB1) each                        
  At 1 January 2009, 31 December 2009                         
   and 1 January 2010                       8,464,360      3,315,678   11,780,038   8,464,360   3,315,678   11,780,038
  Issue of shares (ii)                        530,000             --      530,000     530,000          --      530,000
                                        ------------------------------------------------------------------------------
  At 31 December 2010 (iii)                 8,994,360      3,315,678   12,310,038   8,994,360   3,315,678   12,310,038
                                          ============================================================================

    Note:            

    (i)   Both A shares and H shares rank pari passu to each other.

    (ii)  On 23 March 2010, the Company issued 530,000,000 A shares to specific investors by way
          of non-public offering at a subscription price of RMB6.23 per share for a total cash
          consideration of RMB3,301,900 thousand. The premium on the issues of shares, amounting
          to RMB2,718,372 thousand, net of share issue expenses, was credited to the Company's
          capital reserve account.

    (iii) At 31 December 2010, 530,000,000 (2009: Nil) A shares were subject to lock-up periods 
          and were not freely tradable.


    The Group's objectives when managing capital are to safeguard the Group's ability to continue
    as a going concern and to maximise the returns to the shareholders through the optimisation 
    of the capital structure.

    The Group sets the amount of capital in proportion to risk. The Group manages the capital 
    structure and makes adjustments to it in the light of changes in economic conditions and the
    risk characteristics of the underlying assets. In order to maintain or adjust the capital 
    structure, the Group may adjust the payment of dividends, issue new shares, raise new debts 
    or sell assets to reduce debts.

    The Group monitors capital on the basis of the assets-to-liabilities ratio. This ratio is
    calculated as total liabilities divided by total assets. The assets-to-liabilities ratio of 
    the Group as at 31 December 2010 was 81.95% (2009, as restated: 82.20%).

    The slight decrease in the assets-to-liabilities ratio during 2010 was primarily due to the 
    increase of accounts and notes receivable accompanied by the growth in operating revenue.
    Taking into consideration of the expected operating cash flows of the Group and the available
    banking facilities and their experience in refinancing short- term borrowings, the directors
    believe the Group can meet their current obligations when they fall due.
 

30. STATEMENT OF FINANCIAL POSITION OF THE COMPANY



                                                                 2010          2009
                                                              RMB'000       RMB'000
                                                                          (restated)

    Property, plant and equipment                          10,131,643    10,010,353
    Investments in subsidiaries                            21,155,786    16,616,425
    Other non-current assets                               13,875,483     9,651,286
    Cash and cash equivalents                               2,145,796       291,589
    Other current assets                                    4,406,609     9,501,882
                                                          ------------  ------------
    TOTAL ASSETS                                           51,715,317    46,071,535
                                                          ============  ============
    Share capital                                          12,310,038    11,780,038
    Reserves                                               17,797,509    14,266,891
    Long-term loans                                        12,135,200    10,409,600
    Long-term bonds                                         5,949,018     5,938,544
    Other non-current liabilities                             334,317       384,299
    Short-term loans                                          880,000       550,000
    Other current liabilities                               2,309,235     2,742,163
                                                          ------------  ------------
    TOTAL EQUITY AND LIABILITIES                           51,715,317    46,071,535
                                                          ============  ============



31. RESERVES

    (a)  Group

         The amounts of the Group's reserves and movements therein are presented in the 
         consolidated statement of comprehensive income and consolidated statement of 
         changes in equity.
 
    (b)  Company



                                               Statutory  Discretionary                
                                     Capital     surplus        surplus  Restricted      Other   Retained    
                                     reserve     reserve        reserve     reserve   reserves   earnings       Total
                              Note   RMB'000     RMB'000        RMB'000     RMB'000    RMB'000    RMB'000     RMB'000

      At 1 January 2009            1,592,988   2,923,568      6,800,692      46,081         --  2,388,465  13,751,794
      Total comprehensive                                
       income for the year,                                 
       as restated                        --          --             --          --         --  1,806,881   1,806,881
      Others                              --          --             --          --      4,020         --       4,020
      Transfer from
       restricted reserve                 --          --             --      (8,608)        --      8,608          --
                                
      Transfer to surplus                                 
       reserves, as restated              --     185,730      1,065,496          --         -- (1,251,226)         --
      Dividends paid                      --          --             --          --         -- (1,295,804) (1,295,804)
                             ----------------------------------------------------------------------------------------
      At 31 December 2009,                                 
       as restated                 1,592,988   3,109,298      7,866,188      37,473      4,020  1,656,924  14,266,891
                             ========================================================================================
      At 1 January 2010,                                 
       as previously                                 
       reported                    1,592,988   3,116,874      7,866,188      37,473      4,020  1,725,111  14,342,654
      Effect of correction of                                 
       prior year errors                  --      (7,576)            --          --         --    (68,187)    (75,763)
                             -----------------------------------------------------------------------------------------
      At 1 January 2010,                                 
       as restated                 1,592,988   3,109,298      7,866,188      37,473      4,020  1,656,924  14,266,891
      Total comprehensive                                 
       income for the year                --          --             --          --         --  1,673,949   1,673,949
      Issue of shares          29  2,718,372          --             --          --         --         --   2,718,372
      Transfer from                                 
       restricted reserve                 --          --             --      (7,931)        --      7,931          --
      Transfer to surplus                               
       reserve                            --     207,594             --          --         --   (207,594)         --
      Dividends paid                      --          --             --          --         --   (861,703)   (861,703)
                             -----------------------------------------------------------------------------------------
      At 31 December 2010          4,311,360   3,316,892      7,866,188      29,542      4,020  2,269,507  17,797,509
                               =======================================================================================



    (c)  Nature and purpose of reserves

         (i)   Capital reserve

               Capital reserve mainly comprised: (i) the difference between the nominal amount of 
               the domestic shares issued and the fair value of the net assets injected into the 
               Company during its formation and also proceeds from the issue of H shares and A shares
               in excess of their par value, net of issuance expenses in 1997, 2006 and 2010; and 
               (ii) the premium from convertible bonds converted to shares. The capital reserve is
               non-distributable.

         (ii)  Statutory surplus reserve

               In accordance with the relevant laws and regulations of the PRC and the articles of
               association of the Company, it is required to appropriate 10% of their net profit 
               under PRC GAAP, after offsetting any prior years' losses, to the statutory surplus 
               reserve. When the balance of such a reserve reaches 50% of the Company's share 
               capital, any further appropriation is optional.

               The statutory surplus reserve can be used to offset prior years' losses, if any, and
               may be converted into share capital by issuing new shares to shareholders in 
               proportion to their existing shareholding or by increasing the par value of the 
               shares currently held by them, provided that the remaining balance of the reserve 
               after such an issue is not less than 25% of share capital. The statutory surplus 
               reserve is non-distributable.

         (iii) Discretionary surplus reserve

               Pursuant to the articles of association of the Company, the appropriation of profit
               to the discretionary surplus reserve and its utilisation are made in accordance with
               the recommendation of the Board of Directors and is subject to shareholders' approval
               at their general meeting.

               The discretionary surplus reserve can be used to offset prior years' losses, if any, 
               and may be converted into share capital by issuing new shares to shareholders in 
               proportion to their existing shareholding or by increasing the par value of the shares
               currently held by them. The discretionary surplus reserve is distributable.
 
         (iv)  Restricted reserve

               Pursuant to relevant regulations and guidance issued by the MOF, certain deferred 
               housing benefits are charged to equity directly when incurred under PRC GAAP. In order
               to reflect such undistributable retained earnings in these financial statements 
               prepared under IFRS, a restricted reserve is set up to reduce the balance of retained
               earnings with an amount equals to the residual balance of deferred housing benefits, 
               net of tax.

               Pursuant to relevant PRC regulations, coal mining companies are required to set aside
               an amount to a fund for future development and work safety which they transferred 
               certain amounts from retained earnings to restricted reserve. The fund can then be 
               used for future development and work safety of the coal mining operations, and is not 
               available for distribution to shareholders. When qualifying development expenditure 
               and improvements of safety incurred, an equivalent amount is transferred from 
               restricted reserve to retained earnings.

    (d)  Basis for profit appropriation

         In accordance with the articles of association of the Company, distributable profit of the 
         Company is derived based on the lower of profit determined in accordance with PRC GAAP and IFRS.


32. LONG-TERM LOANS


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Long-term bank loans                                  118,352,026   99,870,956
    Other long-term loans                                   5,703,793    6,478,027
	                                                  -----------  -----------
                                                          124,055,819  106,348,983
                                                          ===========  ===========


    Long-term loans are repayable as follows:



                                                         2010                                    2009    

                                                         Other                                   Other    
                                        Long-term    long-term                   Long-term    long-term    
                                       bank loans        loans         Total    bank loans        loans         Total
                                          RMB'000      RMB'000       RMB'000       RMB'000      RMB'000       RMB'000

    On demand or within one year       13,229,902    1,240,540    14,470,442     6,731,618      110,820     6,842,438
    In the second year                 16,078,045    3,120,540    19,198,585    18,398,383    1,300,820    19,699,203
    In the third to fifth year,
     inclusive                         30,714,130      641,620    31,355,750    34,827,641    4,552,460    39,380,101
    After five years                   58,329,949      701,093    59,031,042    39,913,314      513,927    40,427,241
                                     ---------------------------------------------------------------------------------
                                      118,352,026    5,703,793   124,055,819    99,870,956    6,478,027   106,348,983
                        
    Less:                        
    Amount due for settlement within                        
     12 months (shown under                        
     current liabilities)             (13,229,902)  (1,240,540)  (14,470,442)   (6,731,618)    (110,820)   (6,842,438)
                                     ---------------------------------------------------------------------------------
    Amount due for settlement                        
     after 12 months                  105,122,124    4,463,253   109,585,377    93,139,338    6,367,207    99,506,545
                                     =================================================================================



    Long-term loans are classified as follows:



                                                         2010                                    2009    

                                                         Other                                   Other    
                                        Long-term    long-term                   Long-term    long-term    
                                       bank loans        loans         Total    bank loans        loans         Total
                                          RMB'000      RMB'000       RMB'000       RMB'000      RMB'000       RMB'000

    Secured loans                      46,196,300           --    46,196,300    43,275,222           --    43,275,222
    Guaranteed loans                    5,197,430    1,922,793     7,120,223     7,910,928    2,278,027    10,188,955
    Unsecured loans                    66,958,296    3,781,000    70,739,296    48,684,806    4,200,000    52,884,806
                                     ---------------------------------------------------------------------------------
                                      118,352,026    5,703,793   124,055,819    99,870,956    6,478,027   106,348,983
                                     ---------------------------------------------------------------------------------
    Less:                        
    Amount due for settlement within                        
     12 months (shown under                         
     current liabilities)                        
                        
    Secured loans                      (2,713,320)          --    (2,713,320)   (2,693,466)          --    (2,693,466)
    Guaranteed loans                   (2,717,450)  (1,120,540)   (3,837,990)   (1,892,788)    (110,820)   (2,003,608)
    Unsecured loans                    (7,799,132)    (120,000)   (7,919,132)   (2,145,364)          --    (2,145,364)
                                     ---------------------------------------------------------------------------------
                                      (13,229,902)  (1,240,540)  (14,470,442)   (6,731,618)    (110,820)   (6,842,438)
                                     ---------------------------------------------------------------------------------
    Non-current portion                        
                        
    Secured loans                      43,482,980           --    43,482,980    40,581,756           --    40,581,756
    Guaranteed loans                    2,479,980      802,253     3,282,233     6,018,140    2,167,207     8,185,347
    Unsecured loans                    59,159,164    3,661,000    62,820,164    46,539,442    4,200,000    50,739,442
                                     ---------------------------------------------------------------------------------
                                      105,122,124    4,463,253   109,585,377    93,139,338    6,367,207    99,506,545
                                     =================================================================================



    The carrying amounts of the Group's long-term loans are denominated in the following currencies:



                                                         2010                                    2009    

                                                         Other                                   Other    
                                        Long-term    long-term                   Long-term    long-term    
                                       bank loans        loans         Total    bank loans        loans         Total
                                          RMB'000      RMB'000       RMB'000       RMB'000      RMB'000       RMB'000

    RMB                               118,352,026    4,781,000   123,133,026    99,696,308    5,420,000   105,116,308
    USD                                        --      922,793       922,793       174,648    1,058,027     1,232,675
                                     ---------------------------------------------------------------------------------
                                      118,352,026    5,703,793   124,055,819    99,870,956    6,478,027   106,348,983
                                     =================================================================================


    The interest rates for long-term loans per annum at 31 December were as follows:


                                                          2010             2009

    Long-term bank loans                            2.16% - 8%       LIBOR+1.2%
                                                                        - 7.83%
    Other long-term loans                        1.13% - 6.32%    1.13% - 7.35%


    Long-term loans of RMB4,686,354 thousand (2009: RMB5,444,912 thousand) are arranged at fixed 
    interest rates and expose the Group to fair value interest rate risk. The remaining long-term 
    loans are arranged at floating rates, thus exposing the Group to cash flow interest rate risk.

    The directors estimate the fair value of the Group's long-term loans (including amount due for
    settlement within 12 months) as at 31 December 2010, by discounting their future cash flows at
    prevailing market rates offered to the Group for loans with substantially the same 
    characteristics and maturity dates, to be RMB124,055,819 thousand (2009: RMB106,353,555 
    thousand). The discount rates applied as at 31 December 2010 were ranging from 1.13% to 8% 
    (2009: 1.13% to 7.83%) per annum.

    At 31 December 2010, long-term bank loans amounted to RMB3,967,706 thousand, RMB794,500 
    thousand and RMB435,224 thousand (2009: RMB6,338,616 thousand, RMB902,500 thousand and 
    RMB669,812 thousand) were guaranteed by the Company, China Datang and certain non-controlling 
    shareholders of a subsidiary, respectively. In addition, at 31 December 2010, long-term bank 
    loans amounted to RMB990,000 thousand (2009: RMB1,692,000 thousand) guaranteed by the Company 
    were counter-guaranteed by non-controlling shareholders of a subsidiary.
 
    At 31 December 2010, long-term bank loans amounted to RMB403,910 thousand (2009: RMB1,730,000
    thousand) were secured by the following assets:


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Inventories                                               103,964           --
    Accounts and notes receivable                                  --      272,599
    Property, plant and equipment                             546,550      405,208
                                                              -------      -------
                                                              650,514      677,807
                                                              =======      =======


    At 31 December 2010, long-term bank loans amounted to RMB45,792,390 thousand (2009: 
    RMB41,545,222 thousand) were secured by certain tariff collection rights of the Group.

    At 31 December 2010, other long term loans amounted to RMB781,000 thousand (2009: 
    RMB1,420,000 thousand) were borrowed from Datang Finance. Included in the amount was 
    nil (2009: RMB220,000 thousand) which were guaranteed by the Company, of which nil (2009: 
    RMB99,000 thousand) were counter-guaranteed by non-controlling shareholders of a subsidiary. 
    The remaining balance amounted to RMB781,000 (2009: RMB1,200,000 thousand) was unsecured.

    At 31 December 2010, other long-term loans amounted to RMB4,000,000 thousand (2009: 
    RMB4,000,000 thousand) were borrowed from non-bank financial institutions. Included in the
    amount was RMB1,000,000 thousand (2009: RMB1,000,000 thousand) which were guaranteed by the
    Company, of which RMB450,000 thousand (2009: RMB450,000 thousand) were counter-guaranteed 
    by non-controlling shareholders of a subsidiary. The remaining balance amounted to 
    RMB3,000,000 thousand (2009: RMB3,000,000 thousand) was unsecured.

    At 31 December 2010, other long term loans included a loan amounted to RMB922,793 thousand
    (2009: RMB1,058,027 thousand) borrowed by the MOF from International Bank for Reconstruction
    and Development ("World Bank") and on-lent to a subsidiary of the Company for the 
    construction of electricity utility plant, with the maturities from 1998 to 2017. The 
    effective annual interest rate was LIBOR Base Rate plus LIBOR Total Spread as defined in the
    loan agreement between MOF and World Bank. China Datang provided guarantees on 60% of the 
    loan balance.
 

33. LONG-TERM BONDS


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Medium-term notes (i)                                   2,970,375    2,961,836
    Corporate bonds (ii)                                    2,978,643    2,976,708
                                                            ---------    ---------
                                                            5,949,018    5,938,544
                                                            =========    =========

    Notes:

    (i)  Medium-term notes represented unsecured notes issued by the Company in inter-bank market
         on 3 March 2009 with par value of RMB100 each totalling RMB3 billion. Such medium-term 
         notes are of 5-year term with fixed annual coupon and effective interest rates of 4.10% 
         and 4.44%, respectively. At 31 December 2010, accrued interest for these notes amounted 
         to RMB117,482 thousand (2009: RMB108,943 thousand).

    (ii) Corporate bonds represented unsecured bonds were issued by the Company on 19 August 2009 
         with par value of RMB100 each totalling RMB3 billion. Such bonds are of 10-year term with
         fixed annual coupon and effective interest rates of 5.00% and 5.10%, respectively. At 31
         December 2010, accrued interest for these bonds amounted to RMB58,533 thousand (2009: 
         RMB56,598 thousand).


    At 31 December 2010, the fair value of long term bonds is estimated to be RMB6,085,663 
    thousand (2009: RMB6,138,705 thousand). The fair value of medium-term notes is derived from 
    discounted future cash flows using bond interest rate with similar terms of 4.17% (2009: 3.76%)
    per annum while the fair value of corporate bonds is derived from quoted price available in the
    market.


34. DEFERRED INCOME

    The Group received government grants from local environmental protection authorities for 
    undertaking approved environmental protection projects.
 

35. DEFERRED TAX

    For details of the major deferred tax assets (before offset) recognised by the Group, please 
    visit: http://www.prnasia.com/sa/attachment/2011/05/20110504114141.155.pdf

    For details of the major deferred tax liabilities (before offset) recognised by the Group, 
    please visit: http://www.prnasia.com/sa/attachment/2011/05/20110504601055.156.pdf

    The following is the analysis of the deferred tax balances (after offset) for consolidated 
    statement of financial position purposes:


                                                                 2010         2009
                                                              RMB'000      RMB'000
                                                                         (restated)

    Deferred tax assets                                       972,760      767,899
    Deferred tax liabilities                                 (439,226)    (323,789)
                                                             ---------    ---------
                                                              533,534      444,110
                                                             =========    =========


    No deferred tax asset has been recognised in respect of certain unused tax losses of 
    RMB2,569,630 thousand (2009: RMB1,861,144 thousand) due to the unpredictability of future
    profit streams. The related unrecognised tax losses will expire in the following years 
    ending 31 December:


                                                                 2010         2009
                                                              RMB'000      RMB'000
      
    2012                                                       48,548       48,548
    2013                                                      923,885      923,885
    2014                                                      888,711      888,711
    2015                                                      708,486           --
                                                           -----------  -----------
                                                            2,569,630    1,861,144
                                                           ===========  ===========


36. PROVISIONS



                                        Mine disposal
                                                  and
                                        environmental       Loss-making
                                          restoration         contracts        Total
                                              RMB'000           RMB'000      RMB'000

    At 1 January 2010                          36,008                --       36,008
    Acquisition of a subsidiary                    --             5,546        5,546
    Provisions used                                --            (1,110)      (1,110)
    Changes in present value                    1,159                --        1,159
                                              --------           -------     --------
    At 31 December 2010                        37,167             4,436       41,603
                                              ========           =======     ========


    The mine disposal and environmental restoration provision represents the Group's best 
    estimate of the Group's liability for remediation costs based on industry standards and
    historical experience.

    The loss-making contracts provision represents the Group's best estimated loss on a number
    of fixed income and entrusted lease agreements signed between the buyers of certain 
    properties of the Group (the "Property Buyers") and the Group for the purpose of property 
    sales boosting, according to which the Group is required to locate tenants for the properties
    acquired by the Property Buyers and to guarantee the Property Buyers a fixed rental return 
    during the whole entrusted leasing period ranging from two to ten years.


37. OTHER LONG-TERM LIABILITIES


                                                                 2010         2009
                                                              RMB'000      RMB'000
    
    Finance lease payables                                  3,957,795    4,115,364
    Others                                                    105,128      110,375
                                                           -----------  -----------
                                                            4,062,923    4,225,739
    
    Less: Amount due for settlement within 12 months    
     (shown under current liabilities)                       (339,741)    (524,574)
                                                           -----------  -----------
                                                            3,723,182    3,701,165
                                                           ===========  ===========


    Finance lease payables



                                                                          Present value of minimum  
                                                Minimum lease payments          lease payments  

                                                     2010         2009          2010         2009
                                                  RMB'000      RMB'000       RMB'000      RMB'000
        
    Within one year                               536,556      685,299       267,751      491,187
    In the second to fifth years, inclusive     2,646,489    2,366,010     1,692,334    1,819,131
    After five years                            2,535,871    2,183,695     1,997,710    1,805,046
                                               -----------  -----------   -----------  -----------
                                                5,718,916    5,235,004     3,957,795    4,115,364
    Less: Future finance charges               (1,761,121)  (1,119,640)          N/A          N/A
                                               -----------  -----------   -----------  -----------
    Present value of lease obligations          3,957,795    4,115,364     3,957,795    4,115,364
                                               ===========  ===========   ===========  ===========
    Less: Amount due for settlement         
     within 12 months (shown         
     under current liabilities)                        --           --      (267,751)    (491,187)
                                               -----------  -----------   -----------  -----------
    Amount due for settlement         
     after 12 months                                   --           --     3,690,044    3,624,177
                                               ===========  ===========   ===========  ===========



    It is the Group's policy to lease certain of its plant, property and equipment under finance 
    leases. The average lease term is 18 years (2009:10 years). At 31 December 2010, the average 
    effective borrowing rate was 5.39% (2009: 5.66%) per annum. Interest rates are fixed at the 
    contract dates and thus expose the Group to fair value interest rate risk. All leases are on 
    a fixed repayment basis and no arrangements have been entered into for contingent rental 
    payments. At the end of each lease term, the Group has the option to purchase the plant and 
    machinery at nominal prices.

    The Group's finance lease payables amounted to RMB720,980 thousand (2009: RMB1,275,901 thousand)
    were guaranteed by the Company for the same amount while certain the Group's finance lease 
    payables amounted to RMB810,216 thousand (2009: RMB1,275,901 thousand) were secured by 
    restricted deposits of RMB122,085 thousand (2009: RMB155,117 thousand), all of which will be
    refunded after settlements of last installments of respective finance lease arrangements.

    At 31 December 2010, the total future minimum sublease payments expected to be received under 
    non-cancellable subleases amounted to RMB115,995 thousand (2009: Nil).


38. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Accounts and notes payable    

    Fuel and materials payable to third parties             7,100,568    5,251,884
    Fuel and materials payable to related parties              49,076       65,932
    Notes payable to third parties                            980,127      697,703
                                                          ------------ ------------
                                                            8,129,771    6,015,519
                                                          ------------ ------------
    Construction payables to third parties                  7,909,939    6,320,814
    Construction payables to related parties                  209,902           --
    Acquisition considerations payable                         91,627      143,796
    Receipts in advance from a related party                      591           --
    Receipts in advance from third parties                    621,925      146,277
    Salaries and welfares payable                              51,444       32,825
    Interests payable                                         390,087      356,389
    Other payables to related parties                          95,528      115,277
    Others                                                  1,429,252      909,123
                                                          ------------ ------------
                                                           18,930,066   14,040,020
                                                          ============ ============


    The ageing analysis of the accounts and notes payable is as follows:


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Within one year                                         8,129,771    5,716,659
    Between one to two years                                       --      127,756
    Between two to three years                                     --       43,857
    Over three years                                               --      127,247
                                                           -----------  -----------
                                                            8,129,771    6,015,519
                                                           ===========  ===========


39. SHORT-TERM LOANS


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Short-term bank loans                                  16,665,728   16,648,453
    Other short-term loans                                  2,709,100    2,880,570
    Short-term entrusted loan                                      --       40,000
                                                          ------------ ------------
                                                           19,374,828   19,569,023
                                                          ============ ============


    Short-term loans are classified as follows:



                                                2010                                          2009 

                                            Other Short-term                              Other Short-term  
                           Short-term  short-term  entrusted              Short-term short-term  entrusted  
                           bank loans       loans       loan       Total  bank loans      loans       loan       Total
                              RMB'000     RMB'000    RMB'000     RMB'000     RMB'000    RMB'000    RMB'000     RMB'000

  Secured loans               669,370          --         --     669,370     220,000         --         --     220,000
  Guaranteed loans            816,336          --         --     816,336   2,480,036         --         --   2,480,036
  Unsecured loans          15,180,022   2,709,100         --  17,889,122  13,901,308  2,880,570     40,000  16,821,878
  Other loans (discounted                 
   notes receivable)               --          --         --          --      47,109         --         --      47,109
                           -------------------------------------------------------------------------------------------
                           16,665,728   2,709,100         --  19,374,828  16,648,453  2,880,570     40,000  19,569,023
                           ===========================================================================================


    The carrying amounts of the Group's short-term loans are denominated in the following 
    currencies:



                                                2010                                          2009 

                                            Other Short-term                              Other Short-term  
                           Short-term  short-term  entrusted              Short-term short-term  entrusted  
                           bank loans       loans       loan       Total  bank loans      loans       loan       Total
                              RMB'000     RMB'000    RMB'000     RMB'000     RMB'000    RMB'000    RMB'000     RMB'000

  RMB                      15,921,339   2,709,100         --  18,630,439  15,978,281  2,880,570     40,000  18,898,851
  USD                         128,053          --         --     128,053          --         --         --          --
  HKD                         616,336          --         --     616,336     670,172         --         --     670,172
                           -------------------------------------------------------------------------------------------
                           16,665,728   2,709,100         --  19,374,828  16,648,453  2,880,570     40,000  19,569,023
                           ===========================================================================================


    The interest rates for short-term loans per annum at 31 December were as follows:


                                                                 2010         2009

    Short-term bank loans                                     1.31% -      2.10% -
                                                                5.56%        7.47%
    Other short-term loans                                    3.89% -      3.88% -
                                                                5.23%        6.72%
    Short-term entrusted loan                                      --        4.35%


    Short-term loans of RMB7,297,432 thousand (2009: RMB18,898,851 thousand) are arranged at 
    fixed interest rates and expose the Group to fair value interest rate risk. The remaining 
    short-term loans are arranged at floating rates, thus exposing the Group to cash flow 
    interest rate risk.

    At 31 December 2010, short-term bank loans amounted to RMB200,000 thousand (2009: 
    RMB1,863,700 thousand) were guaranteed by the Company, including which nil (2009: 
    RMB801,000 thousand) of which were counter-guaranteed by the non-controlling shareholders 
    at their respective equity interests.

    At 31 December 2010, short-term bank loans amounted to RMB616,336 thousand (2009: 
    RMB616,336 thousand) were guaranteed by a related party (2009: the headquarters of Bank 
    of China) and secured by a charge over 358,680,000 H shares of the Company executed by 
    the related party in favour of the bank.

    At 31 December 2010, short-term bank loans amounted to RMB669,370 thousand (2009: 
    RMB70,000 thousand) were secured by certain tariff collection rights of the Group.

    At 31 December 2009, short-term bank loans amounted to RMB150,000 thousand were secured 
    by certain accounts receivable of the Group.

    At 31 December 2009, short-term bank loans amounted to RMB47,109 thousand represented 
    discounted notes receivable with recourse. Interest on certain discounted notes receivable
    is 0% per annum as such interest is borne by the drawers.

    At 31 December 2010, other short-term loans amounted to RMB2,709,100 thousand (2009: 
    RMB2,310,570 thousand) which was borrowed from Datang Finance was unsecured and 
    interest-bearing at 4.37% to 5.23% (2009: 4.37% to 6.72%) per annum.

    At 31 December 2009, other short-term loans amounted to RMB570,000 thousand which was 
    borrowed from a non-bank financial institution was unsecured and interest-bearing at 
    3.88% to 4.25% per annum.

    At 31 December 2009, the short-term entrusted loan which was borrowed from China Datang
    through Datang Finance was unsecured and interest-bearing at 4.35% per annum.
 

40. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

    (a) Reconciliation from profit before tax to cash generated from operations



                                                                             2010         2009
                                                                          RMB'000      RMB'000
                                                                                     (restated)

        Profit before tax                                               4,700,300    3,131,479

        Adjustments for:
          Depreciation of property, plant and equipment                 7,376,954    7,521,873
          Depreciation of investment properties                             5,018           --
          Amortisation of intangible assets                                23,409        6,637
          Amortisation of long-term deferred expenses                      24,537        2,686
          Amortisation of deferred income                                 (48,238)     (40,131) 
          Amortisation of deferred housing benefits                        30,854       30,085
          Net gains on disposals of property, plant and equipment         (58,867)     (32,692) 
          Write-off of property, plant and equipment                           29           -- 
          Gain on disposals of investment properties                      (26,813)          -- 
          Interest income                                                 (38,215)     (33,124) 
          Finance costs                                                 5,323,245    4,075,134
          Dividend income                                                  (9,327)      (1,105) 
          Interest income from entrusted loans lent to related parties       (688)      (5,140) 
          Reversal of allowance for accounts receivable                      (130)          -- 
          Reversal of allowance for other receivables                     (41,685)          -- 
          Allowance for inventories                                            --       14,667
          Impairment losses on property, plant and equipment                   --       80,473
          Shares of profits of associates                                (718,231)    (462,112)
          Shares of (profits)/losses of jointly controlled entities        (1,104)      52,685
          Gain on disposals of available-for-sale investments              (8,212)     (30,125) 
          Gain on disposal of assets and liabilities held for sale             --      (40,000) 
          Gain on disposals of associates                                 (93,811)     (74,460) 
          Gain on disposals of subsidiaries                                    --       (3,856) 
          Other gains - others                                               (354)          --
                                                                      ------------ ------------
        Operating profit before working capital changes                16,438,671   14,192,974
          (Increase)/decrease in inventories                           (1,004,442)     336,446
          Increase in accounts and notes receivable                    (1,353,059)  (2,225,882)
          Decrease/(increase) in prepayments and other receivables      1,702,471     (711,620)
          Increase in accounts payable and accrued liabilities          1,858,290    1,258,678
          Increase/(decrease) in taxes payable                            710,882       (8,783)
                                                                      ------------ ------------
        Cash generated from operations                                 18,352,813   12,841,813
                                                                      ============ ============



    (b) Acquisitions of subsidiaries

        On 1 January 2010, the Group acquired 100% of the issued capital of Yuneng Group for a 
        cash consideration of RMB1,345,000 thousand, of which RMB549,318 thousand was paid for 
        acquisition of non-controlling interests of two subsidiaries of the Company held by 
        Yuneng Group. Yuneng Group and its subsidiaries were engaged in power generation, mining 
        and metallurgy as well as property development during the year.

        The carrying amount and the fair value of the identifiable assets and liabilities of 
        Yuneng Group and its subsidiaries acquired as at its date of acquisition are as follows:



                                                     Carrying    Fair value   
                                                       amount   adjustments   Fair value
                                                      RMB'000       RMB'000      RMB'000

        Net assets acquired:         

        Property, plant and equipment               2,077,687        17,793    2,095,480
        Other non-current assets                      457,084       231,882      688,966
        Cash and cash equivalents                   1,419,070           (33)   1,419,037
        Other current assets                        1,168,879       347,235    1,516,114
        Loans                                      (2,270,840)           --   (2,270,840)
        Other non-current liabilities                 (61,820)     (100,027)    (161,847)
        Current liabilities                        (2,301,832)          120   (2,301,712)
                                                   -----------   -----------  -----------
                                                      488,228       496,970      985,198
        Non-controlling interests                    (102,864)     (104,692)    (207,556)
        Goodwill                                           --            --       18,040
                                                   -----------   -----------  -----------
        Satisfied by: 
        Cash                                               --            --      795,682
                                                   ===========   ===========  ===========
        Net cash inflow arising on acquisition:         

        Cash consideration paid                            --            --     (795,682)
        Cash and cash equivalents acquired                 --            --    1,419,037
                                                   -----------   -----------  -----------
                                                           --            --      623,355
                                                   ===========   ===========  ===========



        At 1 January 2010, Datang Deqin was an associate of the Company in which the Company held
        40% equity interests. On 4 March 2010, the Group further acquired 30% of the issued share 
        capital of Datang Deqin for a cash consideration of RMB613 thousand. Datang Deqin is 
        engaged in hydropower generation construction during the year.

        The fair value of the identifiable assets and liabilities of Datang Deqin acquired as at 
        its date of acquisition, which has no significant difference from its carrying amount, is 
        as follows:



                                                                       RMB'000

        Net assets acquired:

        Property, plant and equipment                                   44,127
        Cash and cash equivalents                                        7,797
        Other current assets                                               355
        Long-term loans                                                (30,000) 
        Current liabilities                                            (12,162)
                                                                       --------
                                                                        10,117

        Net assets attributable to the owners of the Company
         before acquisition of additional interest                      (8,917) 
        Non-controlling interests                                         (605)
        Goodwill                                                            18
                                                                       --------
        Satisfied by:
        Cash                                                               613
                                                                       ========
        Net cash inflow arising on acquisition:

        Cash consideration paid                                           (613) 
        Cash and cash equivalents acquired                               7,797
                                                                       --------
                                                                         7,184
                                                                       ========



        On 23 March 2010, the Group acquired 100% of the issued share capital of Liaoning Datang
        International Fuxin Wind Power Company Limited ("Datang Fuxin") for a cash consideration
        of RMB32,942 thousand. Datang Fuxin is engaged in wind power generation construction 
        during the year.

        The carrying amount and the fair value of the identifiable assets and liabilities of 
        Datang Fuxin acquired as at its date of acquisition are as follows:



                                                  Carrying    Fair value
                                                    amount   adjustments   Fair value
                                                   RMB'000       RMB'000      RMB'000

        Net assets acquired:         

        Property, plant and equipment                1,065            --        1,065
        Intangible assets                               --        14,590       14,590
        Cash and cash equivalents                      197            --          197
        Other current assets                        20,738            --       20,738
        Other non-current liabilities                   --        (3,648)      (3,648)
                                                   --------      --------     --------
                                                    22,000        10,942           --
                                                   ========      ========     ========
        Satisfied by: 
        Cash                                            --            --       32,942
                                                   ========      ========     ========
        Net cash outflow arising on acquisition:         

        Cash consideration paid                                               (32,942)
        Cash and cash equivalents acquired              --            --          197
                                                   --------      --------     --------
                                                        --            --      (32,745)
                                                   ========      ========     ========



        On 30 April 2010, the Group acquired 70% of the issued share capital of Baoli Company for 
        a cash consideration of RMB188,889 thousand. Baoli Company is engaged in coal mining 
        during the year.

        The carrying amount and the fair value of the identifiable assets and liabilities of Baoli 
        Company acquired as at its date of acquisition are as follows:



                                                  Carrying    Fair value
                                                    amount   adjustments   Fair value
                                                   RMB'000       RMB'000      RMB'000

        Net assets acquired:            

        Property, plant and equipment              275,974         6,283      282,257
        Cash and cash equivalents                   67,496            --       67,496
        Other non-current assets                    50,264       172,044      222,308
        Other current assets                       202,018            --      202,018
        Non-current liabilities                         --       (44,582)     (44,582)
        Current liabilities                       (476,136)           --     (476,136)
                                                  ---------     ---------    ---------
                                                   119,616       133,745      253,361
        Non-controlling interests                  (43,061)      (40,123)     (83,184)
        Goodwill                                        --            --       18,712
                                                  ---------     ---------    ---------
        Satisfied by: 
        Cash                                            --            --      188,889
                                                  =========     =========    =========
        Net cash outflow arising on acquisition:            

        Cash consideration paid                         --            --     (188,889)
        Cash and cash equivalents acquired              --            --       67,496
                                                  ---------     ---------    ---------   
                                                        --            --     (121,393)
                                                  =========     =========    =========



        The goodwill arising on the acquisition of Yuneng Group, Datang Deqin and Baoli Company 
        is attributable to the anticipated profitability of their power generation or coal mining 
        operations and the anticipated future operating synergies from the combination.

        Yuneng Group, Datang Deqin, Datang Fuxin and Baoli Company increased the Group's profit for 
        the year by RMB30,355 thousand, nil, nil and RMB25,101 thousand respectively between the 
        respective dates of acquisition and the end of the reporting period.

        If all the above acquisitions had been completed on 1 January 2010, total Group revenue for 
        the year would have been RMB60,748,663 thousand, and profit for the year would have been 
        RMB3,835,570 thousand. The proforma information is for illustrative purposes only and is not 
        necessarily an indication of the turnover and results of operations of the Group that actually 
        would have been achieved had the acquisition been completed on 1 January 2010, nor is intended 
        to be a projection of future results.

    (c) Material non-cash transactions

        Additions to property, plant and equipment during the year of RMB556,056 thousand (2009: Nil) 
        were financed by finance leases.

        During the year ended 31 December 2009, there was a material non-cash transaction, which the 
        Company used property, plant and equipment and construction payables and others amounting to 
        RMB1,850,935 thousand and RMB384,905 thousand, respectively, in acquiring an associate. 
        Subsequently, this associate recorded a payable of RMB104,400 thousand, representing the excess 
        investment to be refunded.

    (d) Undrawn borrowing facilities

        The undrawn borrowing facilities of the Group available as at the end of the reporting period 
        were as follows:


                                                                 2010         2009
                                                              RMB'000      RMB'000

        Expiring within one year                                   --    8,166,063
        Expiring beyond one year                          145,984,078  160,837,364
                                                          -----------  -----------
                                                          145,984,078  169,003,427
                                                          ===========  ===========


41. FINANCIAL GUARANTEES

    The Group issues financial guarantee contracts to its associates, jointly controlled entities, 
    other equity investees and a former related party for their borrowings from financial 
    institutions for business developments that transfer significant insurance risk. 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 such financial guarantee contracts, this risk is predictable.

    Experience shows credit risks from specified debtors are relatively remote. The Group maintains 
    a close watch on the financial position and liquidity of the associates, jointly controlled 
    entities, other equity investees and the former related party for which financial guarantees 
    have been granted in order to mitigate such risks. The Group takes all reasonable steps to 
    ensure that it has appropriate information regarding any claim exposure. Details of financial 
    guarantee contracts issued by the Group to the above-mentioned parties at the end of the 
    reporting period are as follows:


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Associates                                                170,000      455,880
    Jointly controlled entities                               614,500      576,500
    Other equity investees                                    108,000      132,000
    A former related party                                         --      193,550
                                                            ---------    ---------
                                                              892,500    1,357,930
                                                            =========    =========


    Based on historical experience, no claims have been made against the Group since the date of
    granting of the above financial guarantees.
 

42. CAPITAL COMMITMENTS

    The Group's capital commitments at the end of the reporting period are as follows:


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Property, plant and equipment 
      Contracted but not provided for                      15,800,987   14,042,926
      Authorised but not contracted for                    16,219,088   34,679,804
    Equity investments
      Contracted but not provided for                       1,024,710    2,283,200
    Intangible assets
      Contracted but not provided for                       3,251,100    4,294,792
                                                           ----------   ----------
                                                           36,295,885   55,300,722
                                                           ==========   ==========


43. LEASE COMMITMENTS

    At 31 December 2010 the total future minimum lease payments under non-cancellable operating 
    leases are payable as follows:


                                                                 2010         2009
                                                              RMB'000      RMB'000

    Within one year                                            26,158       20,578
    In the second to fifth year inclusive                      51,747       68,427
    After five years                                           23,336       46,813
                                                             ---------    ---------
                                                              101,241      135,818
                                                             =========    =========


44. RELATED PARTY TRANSACTIONS

    In addition to those related party transactions and balances disclosed elsewhere in the 
    financial statements, the Group had the following significant transactions and balances with
    its related parties in the normal course of business during the year:

    (a)  Significant transactions with related parties

         (i)    Significant transactions with China Datang and its subsidiaries other than the Group
                (collectively referred to as "China Datang Group") and associates and jointly 
                controlled entities of the Group and their subsidiaries



                                                                                   2010         2009
                                                                                RMB'000      RMB'000

                China Datang Group

                Sales of equipment                                                   --       37,918
                Sales of coal                                                     4,880           --
                Receipt of coal ash disposal service                             57,890       57,890
                Purchases of materials and equipment                            489,630      482,686
                Purchases of fuel                                                25,763       46,893
                Receipt of equipment purchase agency services                     3,078       40,678
                Purchases of generation quota                                        --       18,601
                Operating lease expenses for buildings and facilities            22,228       22,228
                Receipt of repairs and maintenance services                      12,047        7,358
                Receipt of fuel management services                                  --          500
                Provision of entrusted loans                                     24,000       44,270
                Interest income on entrusted loans                                   --          249
                Drawdown of an entrusted loan                                        --      200,000
                Interest expense on an entrusted loan                                --          476
                Sales of pre-project assets                                      92,670           --
                Provision of technical support services                             420           --

                Associates of the Group

                Sales of electricity and heat                                        --      122,115
                Purchases of fuel                                                61,121       40,365
                Receipt of technical support services                            66,929      119,570
                Provision of entrusted loans                                         --       80,000
                Interest income on entrusted loans                                   --        4,891
                Drawdown of loans                                            14,641,600   21,277,950
                Interest expense on loans                                       193,121      139,472
                Interest income on deposits                                      15,407       14,397

                Subsidiary of an associate of the Group

                Purchases of fuel                                               497,909      370,095

                Jointly controlled entities of the Group

                Purchases of fuel                                               318,359      452,216
                Provision of entrusted loans                                    250,000           --
                Interest income on entrusted loans                                  688           --




         (ii)   Financial guarantees with China Datang and associates and jointly controlled 
                entities of the Group



                                                                                   2010         2009
                                                                                RMB'000      RMB'000

                China Datang

                Long-term loans of the Group guaranteed by China Datang       1,348,176    1,537,316

                Associates of the Group

                Long-term loans of the associates guaranteed by the Company     170,000      455,880

                Jointly controlled entities of the Group

                Long-term loans of jointly controlled entities 
                 guaranteed by the Company                                      389,500      401,500
                Short-term loans of a jointly controlled entity
                 guaranteed by the Company                                      225,000      175,000



         (iii)  Compensation to key management personnel of the Group


                                                                                   2010         2009
                                                                                RMB'000      RMB'000

                Basic salaries and allowances                                     1,965        1,888
                Bonus                                                             2,829        3,303
                Retirement benefits                                                 372           50
                Other benefits                                                      153          150
                                                                                 -------      -------
                                                                                  5,319        5,391
                                                                                 =======      =======


                Further details of directors' and supervisors' emoluments are included in note 12 to 
                the financial statements.


         (iv)   Significant transactions with Other State-Owned Enterprises


                                                                                   2010         2009
                                                                                RMB'000      RMB'000

                Sales of electricity                                         52,571,453   42,194,115
                Sales of heat                                                   522,152      262,281
                Interest expense on loans                                     6,692,648    6,083,967
                Purchases of property, plant and equipment                   19,397,979   19,145,878
                Purchases of fuel                                            27,632,526   21,719,904
                Purchases of spare parts and consumable supplies                318,709      248,241
                Drawdown of short-term loans                                 34,443,876   26,224,489
                Drawdown of long-term loans                                  33,346,131   56,312,318
                Disposal of an associate                                             --       87,197


         (v)    Financial guarantees with Other State-Owned Enterprises


                                                                                   2010         2009
                                                                                RMB'000      RMB'000

                Short-term loans of the Group guaranteed by
                 Other State-Owned Enterprises                                  616,336    1,417,336
                Long-term loans of the Group guaranteed by
                 Other State-Owned Enterprises                                1,875,224    2,910,812
                Long-term loans of Other State-Owned
                 Enterprises guaranteed by the Company                          108,000      325,550


         (vi)   Assets/Business transfers with China Datang Group

                During the year ended 31 December 2009, the Company entered into a series of assets 
                transfer agreements and equity transfer agreements with China Datang Group, for which:

                -- the Company acquired 100% equity interests of Liaoning Datang International Wind 
                   Power Development Company Limited ("Liaoning Wind Power") (formerly known as Datang 
                   Liaoning New Energy Company Limited) and its subsidiary and Datang Zhangzhou Wind 
                   Power Company Limited ("Zhangzhou Wind Power") from China Datang for a cash 
                   consideration of RMB264.75 million while Datang Energy and Chemical Company Limited 
                   ("Energy and Chemical Company"), one of the Company's wholly-owned subsidiaries 
                   acquired 100% equity interest of Datang Hulunbei'er Fertilizer Company Limited 
                   ("Hulunbei'er Fertilizer") from China Datang for a cash consideration of RMB51.22 
                   million.

                -- the Company acquired two preliminary project assets of Datang Tieling Energy and 
                   Chemical Project Planning Department and Datang Fujian Power Generation Project 
                   Planning Department and 40% equity interest in Diaobingshan Power Company from China
                   Datang for a cash consideration of RMB25 million and RMB185 million, respectively.

                -- the Company acquired the preliminary project assets of Hulunbei'er Project Planning 
                   Department from Datang Jilin Power Generation Company Limited ("Jilin Power Company"), 
                   a wholly-owned subsidiary of China Datang, for a cash consideration of RMB3 million.

                -- Energy and Chemical Company acquired the preliminary assets of Hulunbei'er Zhaluomude 
                   Water Conservancy and Hydropower Key Project from Jilin Power Company for a cash
                   consideration of RMB5 million.

                -- The Company disposed of its preliminary project assets of Shandong Datang Dongying 
                   Power Plant Planning Department and 100% equity interest in Shandong Datang 
                   International Dongying Wind Power Generation Company Limited to Datang Shandong Power 
                   Generation Company Limited, a wholly-owned subsidiary of China Datang, for a cash 
                   consideration of RMB343 million and RMB104 million, respectively.

    (b)  Significant balances with related parties

         (i)    Significant balances with China Datang Group and associates and jointly controlled 
                entities of the Group


                                                                                   2010         2009
                                                                                RMB'000      RMB'000

                China Datang Group

                Deposits paid for property, plant and equipment
                 (included in property, plant and equipment)                    109,616      450,118
                Short-term entrusted loans                                           --       17,000
                Accounts and notes receivable                                     1,738           --
                Prepayments and other receivables                                64,518      315,060
                Accounts payable and accrued liabilities                        268,960      152,484

                Associates of the Group

                Long-term entrusted loans                                            --      130,194
                Accounts and notes receivable                                        --       35,505
                Prepayments and other receivables                                   978      181,335
                Accounts payable and accrued liabilities                         67,923       17,952

                Jointly controlled entities of the Group

                Prepayments and other receivables                                    --        4,073
                Accounts payable and accrued liabilities                         18,214       10,773
                Short-term entrusted loans                                      100,153           --



                Except for long-term entrusted loans and short-term entrusted loans stated above, all 
                the above balances are unsecured, interest-free and due on demand.

                Terms of long-term entrusted loans and short-term entrusted loans are described in 
                respective notes to the financial statements.

         (ii)   Significant balances with Other State-Owned Enterprises


                                                                                   2010         2009
                                                                                RMB'000      RMB'000

                Deposits paid for property, plant and equipment
                 (included in property, plant and equipment)                  3,945,673    4,188,676
                Accounts and notes receivable                                 6,509,132    5,766,591
                Prepayments and other receivables                             3,420,168    3,066,574
                Cash and cash equivalents                                     2,301,385    1,301,208
                Long-term loans (including current portion)                 121,682,226  103,057,809
                Accounts payable and accrued liabilities                      3,920,689    3,062,454
                Short-term loans                                             16,651,488   16,936,323


                Except for cash and cash equivalents, long-term loans and short-term loans stated above, 
                all the above balances are unsecured, interest-free and due within 12 months.

                Terms of cash and cash equivalents, long-term loans and short-term loans are described 
                in respective notes to the financial statements.

                At 31 December 2010, the interest rates of long-term loans and short-term loans from Other 
                State-Owned Enterprises were ranged from 1.13% to 8% (2009: 2.36% to 7.47%) per annum and 
                from 1.31% to 5.84% (2009: 2.30% to 6.72%) respectively.


45. PRINCIPAL SUBSIDIARIES

    Particulars of the principal subsidiaries as at 31 December 2010 are as follows:

    (a) Subsidiaries acquired from business combination under common control


                                        Place of 
                                        incorporation/
                                        registration     Registered and     Percentage of
        Name                            and operation   paid up capital    equity interest     Principal activities
                                                                RMB'000   Direct    Indirect

        Liaoning Wind Power             PRC                     440,752     100%          --   Wind power generation

        Liaoning Datang International   PRC                      87,000       --        100%   Wind power generation
         Changtu Wind Power Company 
         Limited (formerly known as 
         Datang Changtu New Energy
         Company Limited)

        Hulunbei'er Fertilizer          PRC                     282,700       --        100%   Production and sales
                                                                                               of chemical materials

        Zhangzhou Wind Power            PRC                     217,590       --        100%   Wind power generation



    (b) Subsidiaries acquired from business combination other than under common control and 
        obtained through other methods



                                        Place of 
                                        incorporation/   Registered and     Percentage of
        Name                            registration    paid up capital    equity interest     Principal activities
                                        and operation           RMB'000   Direct    Indirect
                                                       unless otherwise  
                                                                 stated

        Tianjin Datang International    PRC                     831,253      75%          --   Power generation
         Panshan Power Generation
         Company Limited

        Inner Mongolia Datang           PRC                   1,714,020      60%          --   Power generation
         International Tuoketuo 
         Power Generation
         Company Limited

        Shanxi Datang International     PRC                     749,000      60%          --   Power generation
         Shentou Power Generation
         Company Limited
                              
        Shanxi Datang International     PRC                     602,000     100%          --   Power generation 
         Yungang Thermal Power                                                                 and heat supply
         Company Limited

        Hebei Datang International      PRC                      59,162   90.43%          --   Hydropower generation
         Huaze Hydropower Development
         Company Limited

        Gansu Datang International      PRC                     275,500      55%          --   Power generation
         Liancheng Power Generation
         Company Limited

        Hebei Datang International      PRC                     380,264      80%          --   Power generation 
         Tangshan Thermal Power                                                                and heat supply 
         Company Limited

        Jiangsu Datang International    PRC                   1,050,186      55%          --   Power generation
         Lvsigang Power Generation
         Company Limited

        Shanxi Datang International     PRC                     162,125      80%          --   Power generation
         Yuncheng Power Generation
         Company Limited

        Guangdong Datang International  PRC                     391,990      75%          --   Power generation
         Chaozhou Power Generation
         Company Limited

        Fujian Datang International     PRC                     370,000      51%          --   Power generation
         Ningde Power Generation
         Company Limited

        Chongqing Datang International  PRC                     822,250      40%       22.7%   Hydropower generation
         Pengshui Hydropower
         Development Company Limited

        Chongqing Datang International  PRC                     771,990      51%      23.28%   Hydropower generation 
         Wulong Hydropower                                                                     (under construction) 
         Development Company Limited

        Datang International            Hong Kong          USD2,900,000     100%          --   Import of power related
         (Hong Kong) Limited                                                                   fuel and equipment

        Dongneng  (Beijing) Technology  PRC                USD1,500,000       --        100%   Electricity and
         Development Company Limited                                                           energy related 
                                                                                               consultation services

        Zhiganglaka Company             PRC                     380,000       --         90%   Hydropower generation

        Hebei Datang International      PRC                     450,000      70%          --   Power generation
         Wangtan Power Generation
         Company Limited

        Chongqing Datang International  PRC                      10,000      70%          --   Power generation
         Shizhu Power Generation                                                               (under construction)
         Company Limited

        Sichuan Datang International    PRC                      50,000      80%          --   Hydropower generation 
         Ganzi Hydropower                                                                      (under construction)
         Development Company Limited

        Beijing Datang Fuel             PRC                     514,650     100%          --   Coal trading
         Company Limited

        Inner Mongolia Datang           PRC                      10,000       --        100%   Coal sales
         Fuel Company Limited

        Zhejiang Datang Wushashan       PRC                   1,700,000      51%          --   Power generation
         Power Generation
         Company Limited

        Inner Mongolia Datang           PRC                     375,970     100%          --   Coal mining
         International Xilinhaote
         Mining Company Limited

        Inner Mongolia Datang           PRC                  Registered      40%          --   Power generation
         International Tuoketuo  II                            capital:  
         Power Generation Company                              500,000; 
         Limited ("Tuoketuo II                         paid-in capital:
         Power Company") (i)                                    100,000

        Hebei Datang International      PRC                     458,000     100%          --   Power generation
         Zhangjiakou Thermal Power                                                             and heat supply
         Generation Company Limited

        Shanxi Datang International     PRC                     150,000     100%          --   Wind power generation
         Zuoyun Wind Power

         Generation Company Limited

        Jiangxi Datang International    PRC                      50,000     100%          --   Power generation
         Fuzhou Power Generation                                                               (under construction)
         Company Limited

        Liaoning Datang International   PRC                     368,000     100%          --   Power generation
         Jinzhou Thermal Power                                                                 and heat supply
         Generation Limited

        Chongqing Datang International  PRC                      69,040     100%          --   Wind power generation
         Wulongxingshun Wind
         Power Company Limited

        Hebei Datang International      PRC                     200,000      84%          --   Power generation
         Fengrun Thermal Power                                                                 and heat supply
         Company Limited

        Energy and Chemical Company     PRC                   4,024,700     100%          --   Energy and chemical
                                                                                               development

        Datang Fuxin Energy and         PRC                      30,000       --        100%   Maintenance of
         Chemical Engineering                                                                  chemical power
         Company Limited                                                                       equipment, construction
                                                                                               and mechanical
                                                                                               subcontracting

        Datang Energy and Chemical      PRC                      50,000       --        100%   Wholesale and retail
         Marketing Company Limited                                                             of chemical products

        Datang International Chemical   PRC                      50,000       --        100%   Coal chemistry related
         Technology Research                                                                   consultation services
         Institute Company Limited

        Datang Inner Mongolia Erdos     PRC                     100,000       --        100%   Silicon and aluminium
         Silicon and Aluminium                                                                 smelting
         Technology Company Limited                                                            (pre-construction)

        Datang Inner Mongolia           PRC                   4,050,000       --         60%   Coal chemical
         Duolun Coal Chemical                                                                  production
         Company Limited                                                                       (under construction)

        Inner Mongolia Datang           PRC                     110,000       --         26%   Production and sale
         International Renewable                                                               of alumina
         Energy Resource                                                                       (under construction)
         Development Company 
         Limited ("Renewable 
         Energy Resource
         Development Company") (ii)   
 
        Inner Mongolia Datang           PRC                      28,520       --         51%   Hydropower
         International Duolun                                                                  generation and
         Hydropower Multiple                                                                   water supply
         Development Company Limited   
  
        Inner Mongolia Datang Tongfang  PRC                      10,000       --         26%   Development and
         Silicon and Aluminum                                                                  production of silicon
         Technology Company Limited                                                            and aluminum alloy
         ("Tongfang Silicon and 
         Aluminum") (iii)               

        Liaoning Datang International   PRC                     100,000       --         90%   Coal-based natural
         Fuxin Coal-based Gas                                                                  gas generation
         Company Limited                                                                       (under construction)

        Inner Mongolia Datang           PRC                     100,000       --         51%   Coal-based natural
         International Keshiketeng Qi                                                          gas generation
         Coal-based Gas Company Limited                                                        (under construction)

        Inner Mongolia Datang           PRC                      10,000       --        100%   Brown coal processing
         International Xilinhaote Brown                                                        (pre-construction) 
         Coal Integrated Development
         Company Limited

        Inner Mongolia Datang           PRC                      10,000       --         90%   Hydropower generation 
         International Keshiketeng                                                             and water supply 
         Dashimen Hydropower
         Development Company Limited

        Jiangsu Datang Shipping         PRC                     264,900   97.54%          --   Cargo shipping
         Company Limited

        Inner Mongolia Datang           PRC                     554,490     100%          --   Wind power generation 
         International Wind Power                                                              (under construction) 
         Development Company Limited

        Inner Mongolia Datang           PRC                     343,290       --        100%   Wind power generation
         International Zhuozi Wind
         Power Company Limited

        Inner Mongolia Datang           PRC                     151,030       --        100%   Wind power generation 
         International Hongmu Wind                                                             (under construction) 
         Power Company Limited

        Fujian Datang International     PRC                     314,670     100%          --   Wind power generation 
         Wind Power Development                                                                (pre-construction) 
         Company Limited

        Fujian Datang International     PRC                      10,000       --        100%   Wind power generation
         Changle Wind Power                                                                    (under construction) 
         Company Limited

        Fujian Datang International     PRC                       5,000       --        100%   Wind power generation
         Zhaoan Wind Power
         Company Limited

        Shanxi Datang International     PRC                     282,550      80%          --   Power generation
         Linfen Thermal Power                                                                  and heat supply
         Company Limited                                                                       (under construction)

        Liaoning Datang International   PRC                     156,950       --        100%   Wind power generation
         Faku Wind Power
         Development Company Limited

        Xizang Datang International     PRC                     100,000     100%          --   Hydropower generation 
         Nujiang Upstream Hydropower                                                           (pre-construction) 
         Development Company Limited

        Liaoning Datang International   PRC                      30,000     100%          --   Nuclear power
         Zhuanghe Nuclear                                                                      generation
         Power Company Limited                                                                 (pre-construction)

        Tongzhou Technology Company     PRC                     165,000   60.61%          --   Sales of coal ash
                                                                                               and integrated
                                                                                               application of
                                                                                               solid wastes

        Beijing Tongzhou High           PRC                       2,000       --         80%   Sales of ash
         Voltage Environmental
         Technology Company Limited

        Zhejiang Datang Tongzhou        PRC                       5,000       --         80%   Sales of ash
         Environmental Technology
         Company Limited

        Tianjin Datang Tongzhou         PRC                       5,000       --         80%   Sales of ash
         Tongxin Technology
         Company Limited

        Fujian Datang Tongzhou          PRC                       5,000       --         55%   Sales of ash and 
         Yicai Enviromnental                                                                   comprehensive 
         Technology Company                                                                    utilisation of 
         Limited (formerly kmown as                                                            solid emissions
         Xiamen Tongzhou Ylcai
         Technology Trading
         Company Limited)

        Beijing Tongzhou Xinyuan        PRC                       2,000       --         70%   Sales of ash and 
         Building Materials                                                                    comprehensive 
         Technological Development                                                             utilisation 
         Company Limited                                                                       of solid emissions

        Nantong Tongzhou Datong         PRC                       1,000       --         60%   Cargo agent and
         Logistics Company Limited                                                             sales of ash
        Yunnan Datang International     PRC                   1,315,352     100%          --   Power plant
         Electric Power Company Limited                                                        construction 
                                                                                               and operations

        Yunnan Datang International     PRC                     414,550       --         70%   Power generation
         Honghe Power Generation
         Company Limited

        Yunnan Datang International     PRC                     173,370       --         51%   Hydropower generation
         Nalan Hydropower
         Development Company Limited

        Yunnan Datang International     PRC                     598,000       --         70%   Hydropower generation
         Lixianjiang Hydropower
         Development Company Limited

        Yunnan Datang International     PRC                     316,670       --         60%   Hydropower generation
         Wenshan Hydropower
         Development Company Limited

        Yunnan Datang International     PRC                       2,000       --         70%   Hydropower generation
         Hengjiang Hydropower                                                                  (under construction)
         Development Company Limited

        Yunnan Datang International     PRC                      89,040       --         70%   Hydropower
         Biyuhe Hydropower                                                                     development
         Development Company Limited                                                           (under construction)

        Yunnan Datang International     PRC                      10,000       --        100%   Hydropower
         Mengyejiang Hydropower                                                                development
         Development Limited                                                                   (pre-construction)

        Datang Deqin                    PRC                  Registered       --         70%   Hydropower
                                                       capital: 13,571;                        construction and
                                                       paid-in capital:                        operations
                                                                 10,100                        (pre-construction)

        Hebei Datang International      PRC                     570,230     100%          --   Wind power generation
         Wind Power Development                                                                (under construction)
         Company Limited    

        Hebei Datang International      PRC                     410,000       --        100%   Wind power generation
         Fengning Wind Power                                                                   (pre-construction)
         Company Limited    

        Hebei Datang International      PRC                      70,000       --        100%   Wind power generation
         Chongli Wind Power                                                                    (pre-construction)
         Company Limited    

        Liaoning Datang International   PRC                      40,000     100%          --   Power generation and
         Wafangdian Thermal                                                                    heat supply
         Power Company Limited                                                                 (under construction)

        Inner Mongolia Datang           PRC                      30,000     100%          --   Water conservancy hub
         International Haibowan                                                                construction 
         Water Conservancy Hub                                                                 and management Development 
         Company Limited

        Ningxia Datang International    PRC                      33,890     100%          --   Solar power generation
         Qingtongxia Photovoltaic
         Company Limited

        Hohhot Thermal Company          PRC                      60,000      51%          --   Power generation 
                                                                                               and heat supply

        Xinyu Power Company             PRC                     553,912     100%          --   Power generation

        Zhunge'er Mining Company        PRC                      50,000      52%          --   Coal mining
                                                                                               (pre-construction)

        Ningxia Datang International    PRC                      40,000      45%          --   Power generation
         Daba Power Generation
         Company Limited
         ("Daba Power Company") (iv)

        Qian'an Datang                  PRC                      33,334      57%          --   Power generation
         Thermal Power
         Company Limited

        Liaoning Datang International   PRC                     165,860       --        100%   Wind power generation
         Fuxin Wind Power                                                                      (pre-construction) 
         Company Limited

        Yuneng Group                    PRC                   1,086,106     100%          --   Investment holding, 
                                                                                               power generation and 
                                                                                               property development

        Chongqing  Dingtai Energy       PRC                     160,943       --         95%   Development and sales
         Resources (Group)                                                                     of power and
         Company Limited                                                                       electrical machines

        Chongqing Longtai               PRC                     120,000       --         89%   Hydropower generation
         Power Company Limited

        Chongqing Yujiankou             PRC                     114,620       --         78%   Hydropower generation
         Hydropower Company Limited

        Wulong Hydropower               PRC                      26,000       --         77%   Hydropower generation
         Development
         Company Limited

        Chongqing Mayandong             PRC                      80,000       --         95%   Hydropower generation 
         Hydropower Development                                                                (pre-construction) 
         Company Limited

        Chongqing Yuneng Yangzi         PRC                      15,322       --         95%   Hydropower generation
         Power Company Limited

        Chongqing Yujiang Hydropower    PRC                      26,700       --         95%   Hydropower generation
         Development Company Limited                                                           (pre-construction)

        Chongqing Wulong Muzhong        PRC                      10,000       --         48%   Hydropower generation
         River Hydropower
         Company Limited

        Tongzi County Yuneng            PRC                      26,800       --         95%   Hydropower generation
         Hydropower Development
         Company Limited

        Chongqing Qinglong              PRC                      23,500       --         70%   Hydropower generation
         Hydropower Development
         Company Limited

        Tongzi County Yuneng            PRC                       1,000       --         95%   Hydropower generation
         Nitang Hydropower
         Company Limited

        Chongqing Keyuan                PRC                      23,913       --         77%   Development and sales
         Power Company Limited                                                                 of power products

        Chongqing Wushan                PRC                      14,600       --         97%   Hydropower generation
         Qianzhangyan Hydropower
         Development Company Limited

        Chongqing Tuoyuan               PRC                     104,765       --         94%   Power generation
         Company Limited

        Yangpu Heyuan Investment        PRC                      52,200       --         94%   Investment holding
         Company Limited

        Chongqing Luozitang             PRC                         804       --         66%   Hydropower generation
         Hydropower Company Limited

        Chongqing Yu Hao Hydro-         PRC                     132,750       --         48%   Hydropower generation 
         power Development
         Company Limited

        APC Hydropower                  Singapore                SGD100       --         95%   Investment holding
         (Investment) Pte. Ltd.

        Chongqing  Yuneng Real          PRC                     300,000       --         97%   Property development
         Estate (Group) Company
         Limited ("Yuneng Real Estate")

        Chongqing Yuneng                PRC                      50,000       --         77%   Property development
         Chenyang Property                                                                     and property
         Company Limited                                                                       management

        Chongqing Yuneng Property       PRC                      25,000       --         97%   Property development
         Development Company Limited

        Chongqing Yuneng                PRC                      20,000       --         97%   Construction decoration
         Construction and                                                                      and installation
         Installation Company Limited

        Chongqing Yuneng Junyang        PRC                      10,000       --         33%   Property development
         Property Development 
         Company Limited 
         ("Junyang Property") (v)

        Chongqing Yuneng Wanyi          PRC                      80,000       --         44%   Property development
         Property Development
         Company Limited
         ("Wanyi Property") (vi)

        Chongqing Yuneng                PRC                      20,500       --         97%   Sales of electrical
         Jintai Power Equipment                                                                equipment and 
         Company Limited                                                                       construction materials

        Chongqing Yuneng Property       PRC                       5,000       --         97%   Property management
         Services Company Limited    

        Chongqing Yuneng Property       PRC                         500       --         97%   Property consulting
         Consulting Company Limited

        Chongqing Shangshan             PRC                      20,000       --         82%   Property development
         Property Company Limited

        Chongqing Yadongya              PRC                      80,000       --         96%   Sales of power, 
         Electric (Group)                                                                      construction materials
         Company Limited                                                                       and coal products

        Chongqing Taigao Switchgear     PRC                       2,000       --         49%   Sales of high voltage
         Company Limited                                                                       and low voltgage
         ("Taigao Switchgear")                                                                 vaccum switches

        Chongqing Keyuan Energy         PRC                       5,000       --         96%   Sales of
         Technology Development                                                                electrical equipment
         Company Limited   

        Chongqing Keyuan                PRC                       5,000       --         96%   Sales of
         Power Company Limited                                                                 electrical equipment

        Chongqing Yadongya Group        PRC                       5,000       --         96%   Sales of computer
         Software Company Limited                                                              software and hardware

        Chongqing Hongda Cement         PRC                       5,000       --        100%   Production and sales
         Product Company Limited                                                               of cement products

        Chongqing Yuneng Wind Power     PRC                      10,000       --         94%   Wind power generation
         Generation Development
         Company Limited

        Baoli Company                   PRC                      50,000      70%          --   Coal mining


        All the above subsidiaries are limited liability companies except that Zhiganglaka
        Company and Taigao Switchgear are also foreign investment enterprises.

        The above list contains the particulars of subsidiaries which principally affected 
        the results, assets or liabilities of the Group.


        Notes:

        (i)   On 6 September 2006, the Company entered into an agreement with China Datang, 
              one of the shareholders of Tuoketuo II Power Company, which holds 20% equity 
              interest in Tuoketuo II Power Company. Pursuant to this agreement, the 
              shareholder representative and directors appointed from China Datang will act
              in concert with that of the Company's when exercising voting rights in 
              shareholders' and directors' meetings of Tuoketuo  II Power Company. Therefore, 
              the Company obtained de facto control over Tuoketuo  II Power Company and 
              accounted for it as a subsidiary onwards.

        (ii)  The Company entered into an agreement with one of the shareholders of Renewable 
              Energy Resource Development Company, which holds 25% equity interest of this 
              subsidiary in 2007. Pursuant to this agreement, the shareholder representative 
              and directors appointed from this shareholder will act in concert with that of
              the Company's when exercising voting rights in shareholders' and directors' 
              meetings of Renewable Energy Resource Development Company. Therefore, the Company
              obtained de facto control over Renewable Energy Resource Development Company and
              accounted for it as a subsidiary onwards.

        (iii) Energy  and Chemical Company, the subsidiary of the Company entered into an 
              agreement with one of the shareholders of Tongfang Silicon and Aluminum, which 
              holds 26% equity interest of this subsidiary in 2010. Pursuant to this agreement,
              the shareholder representative and directors appointed from this shareholder will
              act in concert with that of Datang Energy and Chemical's when exercising voting 
              rights in shareholders' and directors' meetings of Tongfang Silicon and Aluminum.
              Therefore, the Company obtained de facto control over Tongfang Silicon and Aluminum 
              and accounted for it as a subsidiary onwards.

        (iv)  On 1 July 2009, the Company entered into an agreement with another shareholder of 
              Daba Power Company, which holds 35% equity interest in Daba Power Company. Pursuant
              to this agreement, the shareholder representative and directors appointed from this 
              shareholder will act in concert with that of the Company's when exercising voting 
              rights in shareholders' and directors' meetings of Daba Power Company. Therefore, 
              the Company obtained de facto control over Daba Power Company and accounted for it 
              as a subsidiary since 1 July 2009.

        (v)   Yuneng Real Estate, the subsidiary of the Company entered into an agreement with one 
              of the shareholders of Junyang Property, which held 33% equity interest of this 
              subsidiary. Pursuant to this agreement, the shareholder representative and directors 
              appointed from this shareholder will act in concert with that of Yuneng Real Estate's 
              when exercising voting rights in shareholders' and directors' meetings of Junyang 
              Property. Therefore, the Company obtained de facto control over Junyang Property and 
              accounted for it as a subsidiary onwards.

        (vi)  Yuneng Real Estate, the subsidiary of the Company entered into an agreement with one
              of the shareholders of Wanyi Property, which held 7.5% equity interest of this 
              subsidiary in 2008. Pursuant to this agreement, the shareholder representative and 
              directors appointed from this shareholder will act in concert with that of Yuneng Real 
              Estate's when exercising voting rights in shareholders' and directors' meetings of 
              Wanyi Property. Therefore, the Company obtained de facto control over Wanyi Property 
              and accounted for it as a subsidiary onwards.
 

46. RETROSPECTIVE ADJUSTMENTS

    According to document Shen Qi Jue [2010] 468 "Audit Decisions Pertaining to Financial Affairs of 
    Income and Expenditure of China Datang for Year 2009" dated 31 December 2010 issued by National 
    Audit Office of the PRC, impairment losses on property, plant and equipment, allowance for 
    inventories and depreciation of property, plant and equipment of the Company for the year ended 
    31 December 2009 were understated by RMB80,473 thousand, RMB14,667 thousand and RMB4,408 thousand 
    respectively mainly resulting from closure of certain power generating units and their spare parts 
    or delay in transferring certain construction in progress to property, plant and equipment 
    (collectively referred to as the "Prior Year Errors"). The Group has made retrospective 
    adjustments of the comparative figures for the year ended 31 December 2010 to correct the Prior 
    Year Errors.

    After retrospective adjustments, operating costs of the Group for the year ended 31 December 2009
    increased by RMB99,548 thousand while income tax expense and profit for the year of the Group for 
    the year ended 31 December 2009 decreased by RMB23,785 thousand and RMB75,763 thousand respectively; 
    and deferred tax assets of the Group at 1 January 2010 increased by RMB23,785 thousand while 
    inventories, property, plant and equipment, statutory surplus reserve and retained earnings of the
    Group at 1 January 2010 decreased by RMB14,667 thousand, RMB84,881 thousand, RMB7,576 thousand and
    RMB68,187 thousand respectively.


47. EVENTS AFTER THE REPORTING PERIOD

    Having obtained the "Approval for the Public Issue of Corporate Bonds by Datang International Power 
    Generation Co., Ltd." (Zheng Jian Xu Ke [2009] No.654) from the China Securities Regulatory 
    Commission in July 2009 whereby the Company was permitted to issue corporate bonds not exceeding 
    RMB6 billion, the Company issued first tranche of the corporate bonds amounting to RMB3 billion on 
    19 August 2009.

    In view of the status of the capital market and the capital needs of the Company, the Company 
    intended to complete the issue of the remaining corporate bonds in the amount of RMB3 billion within
    the valid period (i.e. before 21 July 2011) of the authorised document. Up to the date of approval 
    of these financial statements for issue, the Company is actively planning the issue of 2011 first 
    tranche of the corporate bonds.


48. APPROVAL OF FINANCIAL STATEMENTS

    The financial statements were approved and authorised for issue by the Board of Directors on 22 March
    2011.


Differences Between Financial Statements

The consolidated financial statements which are prepared by the Group in conformity with International 
Financial Reporting Standards ("IFRS"), differ in certain respects from China Accounting Standards for 
Business Enterprise ("PRC GAAP"). Major differences between IFRS and PRC GAAP ("GAAP Differences"), which 
affect the net assets and net profit of the Group, are summarised as follows:



                                                                                    Net assets

                                                                                  2010         2009
                                                                               RMB'000      RMB'000
                                                                                          (restated)

Net assets under IFRS                                                       30,850,071   26,122,722

Impact of PRC GAAP adjustments: 
  Difference in the commencement of
   depreciation of property, plant and equipment                       (a)     106,466      106,466
  Difference in accounting treatment
   on monetary housing benefits                                        (b)    (132,530)    (163,384)
  Difference in accounting treatment on mining funds                   (c)     (82,095)     (83,291)
  Applicable deferred tax impact of
   the above GAAP Differences                                          (d)      (3,641)       9,158
  Non-controlling interests' impact of the
   above GAAP Differences after tax                                             (1,015)       6,011
                                                                           ------------ ------------
Net assets under PRC GAAP                                                   30,737,256   25,997,682
                                                                           ============ ============


                                                                                    Net profit

                                                                                  2010         2009
                                                                               RMB'000      RMB'000
                                                                                          (restated)

Profit for the year attributable to owners of the Company under IFRS         2,569,734    1,536,554

Impact of PRC GAAP adjustments:
  Difference in accounting treatment
   on monetary housing benefits                                        (b)      30,854       30,084
  Difference in accounting treatment on mining funds                   (c)    (107,273)    (163,109)
  Applicable deferred tax impact of the above GAAP Differences         (d)     (12,804)       7,809
  Non-controlling interests' impact of the
   above GAAP Differences after tax                                             (6,827)      (7,632)
                                                                           ------------ ------------
Net profit for the year attributable to owners 
 of the Company under PRC GAAP                                               2,473,684    1,403,706
                                                                           ============ ============



Note:

(a)  Difference in the commencement of depreciation of property, plant and equipment

     This represents the depreciation difference arose from the different timing of the start
     of depreciation charge in previous years.

(b)  Difference in accounting treatment on monetary housing benefits

     Under PRC GAAP, the monetary housing benefits provided to employees who started work before
     31 December 1998 were directly deducted from the retained earnings and statutory public 
     welfare fund after approval by the general meeting of the Company and its subsidiaries.

     Under IFRS, these benefits are recorded as deferred assets and amortised on a straight-line
     basis over the estimated remaining average service lives of relevant employees.

(c)  Difference in accounting treatment on mining funds

     Under PRC GAAP, accrual of future development and work safety expenses are included in 
     respective product cost or current period profit or loss and recorded in a specific reserve
     accordingly. When such future development and work safety expenses are applied and related 
     to revenue expenditures, specific reserve is directly offset when expenses incurred. When 
     capital expenditures are incurred, they are included in construction in progress and 
     transferred to fixed assets when the related assets reach the expected use condition. They 
     are then offset against specific reserve based on the amount included in fixed assets while 
     corresponding amount is recognised in accumulated depreciation. Such fixed assets are not 
     depreciated in subsequent periods.

     Under IFRS, coal mining companies are required to set aside an amount to a fund for future 
     development and work safety through transferring from retained earnings to restricted reserve. 
     When qualifying revenue expenditures are incurred, such expenses are recorded in the profit or
     loss as incurred. When capital expenditures are incurred, an amount is transferred to property, 
     plant and equipment and is depreciated in accordance with the depreciation policy of the Group.
     Internal equity items transfers take place based on the actual application amount of future 
     development and work safety expenses whereas restricted reserve is offset against retained 
     earnings to the extent of zero.

(d)  Applicable deferred tax impact on the above GAAP Differences

     This represents the deferred tax effect on the above GAAP Differences where applicable.



Corporate Information


English Name of the Company

Datang International Power Generation Company Limited


Office Address of the Company

No. 9 Guangningbo Street
Xicheng District
Beijing
People's Republic of China


Principal Place of Business in Hong Kong

Stephen Mok & Co in association with Eversheds
21/F Gloucester Tower
15 Queen's Road Central
Hong Kong


Legal Representative

Liu Shunda


Authorised Representatives

Cao Jingshan
Zhou Gang


Secretary to the Board

Zhou Gang


Principal Bankers

In the PRC:
Industrial and Commercial Bank of
China, Xuanwu Branch
No. 3 Nanbinhe Road
Xuanwu District
Beijing
People's Republic of China

Outside the PRC:
Bank of China, Hong Kong Branch
One Garden Road
Central
Hong Kong


Domestic Auditor

RSM China Certified Public Accountants Limited Company
8-9F, Block A, Corporate Square,
No. 35 Finance Street,
Xicheng District,
Beijing,
PRC


International Auditor

RSM Nelson Wheeler
Certified Public Accountants
29th Floor, Caroline Centre,
Lee Gardens Two,
28 Yun Ping Road,
Causeway Bay,
Hong Kong


Legal Advisors

as to PRC law:
Beijing Hylands Law Firm
5A1 Hanwei Plaza
No. 7 Guanghua Road
Chaoyang District
Beijing
People's Republic of China

as to Hong Kong law:
Stephen Mok & Co in association with Eversheds
21/F, Gloucester Tower
15 Queen's Road Central
Hong Kong


Listing Information

H Shares

The Stock Exchange of Hong Kong Limited
Code: 0991

A Shares

Shanghai Stock Exchange
Code: 601991

H Shares

The London Stock Exchange Limited
Code: DAT


Share Register and Transfer Office

Computershare Hong Kong Investor Services Limited
17/F, Hopewell Center
183 Queen's Road East
Wanchai
Hong Kong


Information of the Company

Available at:
The secretary office of the Board
Datang International Power Generation
Company Limited
No. 9 Guangningbo Street
Xicheng District
Beijing
People's Republic of China
and
Rikes Hill & Knowlton Limited
Room 1312, Wing On Centre
111 Connaught Road Central
Hong Kong



Glossary of Terms

The following terms have the following meaning in this annual report, unless otherwise required by the context.

"North China Power"                   The power transmission network covering Beijing, Tianjin, Hebei 
                                      Province, Shanxi Province and Inner Mongolia Autonomous Region

"Installed capacity"                  The highest level of electrical output which a power plant is 
                                      designed to be able to maintain continuously without causing damage 
                                      to the plant

"Gross generation"                    For a specified period, the total amount of electrical power 
                                      produced by a power plant in that period including electrical power 
                                      consumed in the operation of the power plant

"Total on-grid generation"            The amount of power transmitted to a power network from a power 
                                      plant as measured by the grid meter

"Equivalent availability factor"      For a specified period and a given power plant, the ratio (usually 
                                      expressed as a percentage) of the number of available hours in that 
                                      period (reduced, in the case of hours in which the attainable 
                                      generating capacity of such plant is less than the installed 
                                      capacity, by the proportion of installed capacity not so attainable) 
                                      to the total number of hours in that period

"Utilisation hours"                   For a specified period, the number of hours it would take for a 
                                      power plant operating at installed capacity to generate the amount 
                                      of electricity actually produced in that period

"MW"                                  1,000,000 watts (equivalent to 1,000 kW)

"kWh"                                 A unit of power generation equivalent to the output generated by 
                                      1,000 watts of power in one hour

"MWh"                                 A unit of power generation equivalent to the output generated by 
                                      1,000,000 watts of power in one hour