2011 Annual Report

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

                                       2011 Annual Report

ACHIEVING SUSTAINABLE 
DEVELOPMENT
THROUGH THE SYNERGY 
IN DIVERSITY


Contents 


-- Company Profile 
-- Distribution of Projects 
-- Major Events in 2011
-- 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 


The year 2011 was the year in which  China's "Twelfth  Five-year Plan" was launched. During the 
year, Datang Power continued to intensify the adjustment of its business structure. While  
further optimising the structure of its principal business of power generation, the Company 
constantly pushed forward the development of non-power businesses - including coal, coal to 
chemical and transport - thereby achieving the complementary development of diversified power 
sources, ensuring coal supply, stabilising the transport of coal, expanding the profit platform 
and shaping a diversified business model. The advantages of synergy are set to be gradually 
realized.

In 2012, Datang Power will accelerate the implementation of its strategy aimed at focusing on its 
power generation business whilst complementing it with synergistic diversifications. It will 
focus its strengths on developing the integrated and clustered projects that combine 
profitability, advanced technology, integrated innovations and synergetic diversifications, 
with a view to building long-term competitiveness and achieving sustainable development for 
the Company and stable returns for its shareholders.


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.

DEVELOPMENT STRATEGIES
The Company will enhance its coal-fired power; aggressively expand its hydropower; continuously 
develop wind power; safely and effectively develop nuclear power; appropriately develop solar
energy; focus on suitable coal operations; steadily develop coal-to-chemical; accelerate the 
development of metallurgy; and secure a complementary development of railway, port and shipping.

MISSION
To be a responsible power enterprise with quality, talent and efficiency.

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 2011, the total consolidated assets of the Company and its subsidiaries 
amounted to approximately RMB247.697 billion. Total installed capacity in operation of the 
Company amounted to 38,484 MW. The businesses in power generation, coal-to-chemical, 
transportation and recycling economy of the Company spread across 18 provinces (municipalities 
and autonomous regions) throughout the country.

EQUITY STRUCTURE AND SHAREHOLDING OF THE COMPANY

Please visit http://www.prnasia.com/sa/attachment/2012/04/20120430203959230563.pdf for the 
infographic for Equity Structure and Shareholding of The Company.

Distribution of Projects

Please visit http://www.prnasia.com/sa/attachment/2012/04/20120430203959708342.pdf for 
Distribution of Projects map. 


Major Events in 2011

01 JANUARY

-- Units 1 and 2 (2 x 300MW) at Shanxi Datang International Linfen Thermal Power Company Limited 
   were launched for commercial operation.

02 FEBRUARY

-- The National Development  and Reform Commission sent an official reply to the Company granting 
   approval for the Phase 2 project (with a capacity of 20 million tonnes/year) of the Shengli 
   open-pit Coal Mine East Unit 2 at Datang Power and the Dadu River Huangjinping Hydropower 
   Project (850MW) of Sichuan Datang International Ganzi Hydropower Development Company Limited.

03 MARCH

-- Datang Power received a Titanium Award from The Asset, a Hong Kong-based magazine, for 
   corporate governance, social and environmental responsibility and investor relations 
   management for 2010, making it the only award-winning large-scale power generation company 
   under the category of Chinese power/utilities enterprises.

-- Datang Power ranked 17th among the "Top 50 Chinese Domestic Companies" in the first-ever 
   "China Corporate Social Responsibility Top 100 Rankings"  released by Fortune (Chinese Edition).

05 MAY

-- Jiangsu Datang International Lvsigang Power Generation Company Limited and Guangdong Datang 
   International Chaozhou Power Generation Company Limited received the 2011 China Quality Power 
   Project Silver Award for the 4 x 600MW new project and units 3 and 4 (2 x 1,000MW), 
   respectively, from the China Electric Power Construction Association.

-- The Company successfully completed the non-public issue of 1 billion A shares, raising funds 
   amounting to RMB6,740 million.

-- Datang No. 6, Datang No. 7, Datang No. 8 and Datang No. 10 (bulk carriers with loading 
   capacity of 45,000-tonnes each) of Jiangsu Datang Shipping Company Limited were delivered 
   upon completion of their construction.

06 JUNE

-- The Faku Wulongshan Wind Power Project (48MW) in Liaoning, the  Qingtongxia (Shashidunliang)
   Wind Farm Project (48MW) in Ningxia, Phase 2 of the Qingtongxia Photovoltaic Grid Power 
   Station (20MWp) in Ningxia and the Golmud Grid Photovoltaic Power Generation Project (20MWp) 
   in Qinghai were approved by the Development and Reform Commissions of Liaoning Province, the 
   Ningxia Hui Autonomous Region and Qinghai Province, respectively.

07 JULY

-- Datang International Fengning Wanshengyong Wind Farm Project, with a capacity of 150MW, was 
   approved by the National Development and Reform Commission.

08 AUGUST

-- The Series A Gasifier 8 at the gasification plant of Inner Mongolia Datang International 
   Keshiketeng Qi Coal-based Gas Company Limited was successfully launched after the first 
   ignition at 22:58.

-- Datang Inner Mongolia Duolun Coal Chemical Company Limited achieved a breakthrough at the 
   methanol-to-propylene ("MTP") plant in the production of propylene products, marking the 
   successful large-scale industrial application of MTP at the Duolun Coal Chemical Project.

-- The Jishan Wind Farm Project (48MW) in Jiangxi was approved by the Development and Reform 
   Commission of Jiangxi Province.

09 SEPTEMBER

-- Thirty-three stand-alone wind turbines at the Xiqiaoliang Wind Farm of Hebei Datang 
   International Wind Power Development Company Limited were launched for commercial operation.

10 OCTOBER

-- Units 1 and 2 (total capacity of 130MW) at the Shimenkan Hydropower Station of Yunnan Datang 
   International Lixianjiang Hydropower Development Company Limited were launched for commercial 
   operation upon the successful completion of a 72-hour test run.

11 NOVEMBER 

-- The 49.5MW Xiqiaoliang Phase 1 Project of Hebei Datang International Chongli Wind Power 
   Company Limited and the 49.5MW Dahexi Phase 1 Project of Hebei Datang International Fengning 
   Wind Power Company Limited were launched for commercial operation.

-- Datang Power was rated the 162nd overall by Platts, a provider of energy information, in 
   the "Top 250 Global Energy Companies for 2011 Rankings".

-- At the China Securities Golden Bauhinia Awards ceremony hosted by Hong Kong-based Ta Kung Pao, 
   Datang Power's Chairman Liu Shunda received "The Most Influential Leader Award", while Datang 
   Power was named the "Listed Companies with  the  Most  Investment  Value during the Twelfth 
   Five-year Plan".

12 DECEMBER

-- The 48MW Luotuogou Phase 1 Project of Hebei Datang International Fengning Wind Power Company 
   Limited was launched for commercial operation.

-- Units 1, 2, 3 and 4 at the Wujiang Yinpan Hydropower Station of Chongqing Datang International 
   Wulong Hydropower Development Company Limited, with a total installed capacity of 600MW, were 
   launched for commercial operation, having achieved the annual construction project target of 
   "launching  four units into operation within one year".

-- Two 350MW coal-fired generating units at Chongqing Datang International Shizhu Power Generation
   Company Limited  were  approved by the National Development and Reform Commission.

-- The Development and Reform Commission of Zhejiang Province sent an official reply to the
   Company granting approval for the two  sets of 452MW gas-steam combined cycle thermal 
   cogeneration units at the Datang Shaoxing Jiangbin Natural Gas Thermal Cogeneration Project 
   and the two sets of 115MW gas-steam combined cycle thermal cogeneration units at the Datang 
   Jiangshan Natural Gas Thermal Cogeneration Project.

-- The Development and Reform Commission of Jiangxi Province sent an official reply to the 
   Company granting approval for the Jiangxi Songmenshan Wind Farm Project (48MW) of 
   Datang International Wind Power Development Company Limited.

-- Phase 1 of the 20MWp photovoltaic array at the Golmud Photovoltaic Power Station of Qinghai 
   Datang International Golmud Photovoltaic Power Generation Company Limited was formally 
   connected to the grid for power generation.

Financial and Operating Highlights

CONSOLIDATED STATEMENT  OF COMPREHENSIVE  INCOME (Note)

(Amounts expressed in millions of RMB)
 
For the year ended 31 December    2007     2008      2009      2010     2011  
                                                  (Restated)
_______________________________________________________________________________

Operating revenue               32,763   36,900    47,943    60,672   72,382
_______________________________________________________________________________

Profit before tax                6,063      600     3,132     4,700    3,710 

Income tax expense              (1,498)     (72)     (615)     (871)    (668)
_______________________________________________________________________________
Profit for the year 
  attributable to:

  - Owners of the Company        3,564      749     1,537     2,570    1,971

  - Non-controlling 
    interests                    1,001     (221)      980     1,259    1,071
_______________________________________________________________________________



Please visit http://www.prnasia.com/sa/attachment/2012/05/20120502193925929150.pdf for 
more details. 

Chairman's Statement

Looking forward to 2012, the Chinese government will continue to focus on the macroeconomic 
policy  on accelerating  economic  restructuring and improving the quality of development and the 
profitability. Datang Power will continue to remain focused on economic benefits as the core 
basis of the theme of scientific development, and will accelerate the pace of restructuring to 
ensure that the objectives in the second phase of its medium-term development plan could be 
achieved.

To all shareholders,

In 2011, domestic thermal coal prices remained high and surged dramatically. The upward 
adjustment to on-grid tariffs was far from enough to offset the higher prices. The unfavorable 
situation of an imbalance in thermal coal prices remained fundamentally unchanged. As a result 
of the implementation of a tight monetary policy in China, the cost of borrowing rose alongside 
increasing finance costs borne by power generation companies. In these challenging market 
conditions and the pressure exerted on operations, we pushed forward the full-scale 
implementation of our strategy, which was aimed at focusing on the power generation business 
whilst being complemented by synergistic diversifications, and launched the campaign on "Two 
Increases and Two Reductions, Pursuit of Profits and Conquest of Difficulties" in a profound 
manner. Despite a decline in benefits, we managed to make some hard-won achievements.

As at 31 December 2011 (the "Year"), the total installed capacity of the Company and its 
subsidiaries was 38,484MW, while consolidated assets amounted to approximately RMB247,697 million,
 representing an increase of 16.34% as compared to the corresponding period of 2010 (the 
"Previous Year"). Consolidated operating revenue amounted to approximately RMB72,382 million, 
representing an increase of approximately 19.30% as compared to the Previous Year. Profit 
attributable to equity holders of the Company amounted to approximately RMB1,971 million, 
representing a decrease of approximately 23.29% as compared to the Previous Year. Earnings per 
share were approximately RMB0.15, representing a decrease of approximately RMB0.06 per share as
compared to the Previous Year.

The Company continued to maintain good production safety in 2011, achieving an overall equivalent 
availability factor of all operating units of 93.64% for the Company and its subsidiaries. Power 
generated by the Company and its subsidiaries amounted to 203.72 billion kWh, an increase of 
14.14% as compared to the Previous Year. Coal consumption per unit production of power supply 
was approximately 319.69 g/kWh, a decrease of approximately 3.90 g/kWh as compared to the 
Previous Year.

Looking forward to 2012, the Chinese government will continue to focus on the macroeconomic 
policy on accelerating economic restructuring and improving the quality of development and the 
profitability. Against this backdrop, Datang Power will still be exposed to challenges and 
opportunities. With respect to challenges, firstly, China's economic growth will slow down 
due to the impact of the structural adjustment of the macro economy. Secondly, the development 
of enterprises will be limited due to lack of funds. Thirdly, the State issued higher standards 
on energy conservation and emissions reduction. With respect to opportunities, firstly, pressure 
on the Company's operations is expected to be alleviated. Secondly, the advantage of diversified 
businesses will be revealed gradually. Thirdly, the efficiency of management will be further 
improved.

In 2012, Datang Power will enter the final year of the second phase of its medium-term 
development plan, which primarily focuses on reinforcing Datang Power's dominant position in 
the power generation industry, the successive commencement of production of its coal chemical 
and metallurgy projects, further assuring the availability of the Company's own coal, the initial
creation of a logistics industry value chain and the shaping of a diversified industrial pattern. 
Datang Power will continue to remain focused on economic benefits as the core basis of the theme
of scientific development, and will accelerate the pace of restructuring to ensure that the 
objectives in the second phase of its medium-term development plan could be achieved.

In the new year, Datang Power will continue to implement its core mechanisms - the comprehensive 
accountability management system and the performance appraisal system for all staff - and will 
take advantage of the opportunities  arising from the "Year  of Primary Level Organizational 
Setup" and the "Year  of Management Enhancement"  to carry out benchmarking, overcome weaknesses 
and strengthen internal management. We will manage our staff according to such systems, 
discipline our staff according to established procedures and handle our business according 
to proven processes. We will rely on scientific and accurate data and will offer rewards or 
impose penalties according to these mechanisms. We will complete our projects in progress to 
best possible standards and will generate returns for our shareholders and the community by 
delivering top-notch achievements, top-notch standards and top-notch development models.

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




                                                                                      Liu Shunda
                                                                                       Chairman


                                                                                     23 March 2012




Management Discussion and Analysis

The Company is one of the largest independent power generation companies in the PRC. As at the 
end of 2011, the Group managed a total installed capacity of approximately 38,484.2 MW. 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, Qinghai, and Sichuan.

A.  OVERVIEW

The Company, principally engaged in power generation business focusing on coal-fired power 
generation, is one of the largest independent power generation company in the People's Republic 
of China (the "PRC"). In 2011, 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 established an innovative management mechanism to 
enhance its control capabilities. Faced with a challenging situation in its production and 
operation, it unleashed its potential according to its benchmarks, created excellence and 
improved efficiency, constantly enhanced economic benefits and shareholder returns of the 
Company as well as resource conservation and environmental protection, and earnestly fulfilled 
its social responsibilities, thereby successfully achieving the business targets set for the Year.

1.  Safe Production was Stably Maintained

    The Company aims to build a fundamentally safe enterprise and to further deepen the 
    establishment of a long-term mechanism for safe production. The Company has experienced no 
    significant incidents at its facilities and no casualties during the Year. It has fulfilled 
    its role of securing power supply during the Year.

2.  Overall Accomplishment of Operation Targets

    The Company's power generation amounted to 203.7156 billion kWh for the Year, representing 
    an increase of 14.14% year-on-year. Consolidated operating revenue amounted to approximately
    RMB72,382 million, representing an increase of approximately 19.30% over the Previous Year. 
    Net profit attributable to equity holders of the Company amounted to approximately RMB1,971 
    million, representing a decrease of approximately 23.29% over the Previous Year. As at 31 
    December 2011, total consolidated assets of the Group amounted to RMB247,697 million, 
    representing an increase of 16.34% year-on-year. Net assets attributable to the parent 
    company of the Company amounted to RMB38,941 million, representing an increase of 26.23% 
    year-on-year. The assets-to-liabilities ratio was 79.52%, representing a decrease of 2.43 
    percentage points year-on-year.
 
3.  Breakthrough on Preliminary Works
    
    For the Year, fourteen power generation projects were approved, including three coal-fired 
    power projects, four hydropower projects, five wind power projects and two photovoltaic power 
    projects, with total approved generation capacity of 3,270.6 MW. Phase 2 of Shengli Coal 
    Mine East Unit 2, with a capacity of 20 million tonnes per year, was approved and was also 
    the first approved largest single open-pit coal mine in the PRC.

4.  Frequent Reports of Success in Commencement of Project Construction 
 
    Total generating capacity recorded an increase of 2,183.9 MW. As at 31 December 2011, the 
    Group's installed capacity amounted to 38,484.2 MW, representing an increase of 6.02% 
    year-on-year. Of such capacity, coal-fired power amounts to 32,360 MW, accounting for 
    84.08%; hydropower amounts to 4,825.6 MW, accounting for 12.54%; wind power amounts to 
    1,268.6 MW, accounting for 3.30%; and photovoltaic power amounts to 30 MW, accounting for 0.08%.

5.  Energy Conservation and Emissions Reduction Proceeded in an Orderly Manner

    In 2011, the  Group achieved coal consumption for power supply of 319.69 g/kWh, a decrease 
    of 3.90 g/kWh year-on-year. The emission rates of sulphur dioxide, nitrogen oxides, smoke 
    ash and waste water of the Group have decreased by 9.90%, 5.01%, 6.06% and 20.48% year-on-year
    to 0.38 g/kWh, 1.33 g/kWh, 0.12 g/kWh and 60 g/kWh respectively, which are substantially 
    lower than the national average levels.

6.  Capital Operation Reaped Better Results

    In 2011, the Company completed the acquisition of equity interests in Sichuan Jinkang 
    Hydropower Development Co., Ltd., increasing its installed hydropower capacity in operation 
    and under construction by 380 MW. The Company successfully completed  the non-public issuance 
    of an additional one billion A shares, with net proceeds raised from the issue amounting to 
    RMB6,740 million. The Company successfully issued RMB3,000 million of corporate bonds 
    carrying a rate of 23% lower than the lending rate during the same period, the lowest 
    level against comparable interest rates during the same period in China.

7.  Ongoing Innovation of Management Mechanism
 
    The Company's management system "overall accountability management and all-staff performance 
    appraisal" officially came online in 2011 which realized the coverage of performance 
    orientation and accountability   management. The Company established its internal controls in 
    full swing by systematically making smooth the business processes in various fields, 
    identifying various types of risks at all levels and setting up an information management 
    platform for internal controls in a regulated manner. The concept of project-based 
    management  was  introduced  to the Company by establishing a regular scheduling mechanism 
    that shaped a unique pattern of project-based management.

8.  Winning Honours in the Capital Market

    The Company once again ranked among the "Top 250 Global Energy Company Rankings" by Platts 
    Energy Information, ranking 162th in the general ranking and 8th among independent power 
    generation enterprises around the world. It ranked 17th among the "Top 50 Chinese Domestic 
    Companies" in the rankings of the "Top 100 Chinese Corporations' Corporate Social 
    Responsibility", published by Fortune, the only independent power generation company in the 
    rankings. It received a "Titanium Award for Corporate Governance, Social and Environmental 
    Responsibility and Investor Relations Management" from The Asset Magazine, the only 
    large-scale power generation company in the PRC that ever won this award.


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 Financial Statements.)

1.  The Power Generation Business

(1) Business Review

    The Company is one of the largest independent power generation companies in the PRC. As at 
    the end of 2011, the Group managed a total installed capacity of approximately 38,484.2 MW. 
    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, Qinghai, and Sichuan.

    In 2011, the PRC's overall economy operated with a good momentum, reaching a year-on-year 
    9.2% Gross Domestic Product (GDP) growth. Both power generation and power consumption 
    nationwide continued to grow in a stable manner. According to the relevant statistics, during 
    the Year, the nationwide capacity of power generating facilities grew by approximately 9.2% 
    year-on-year. Social power consumption increased by 11.7% over the Previous Year, while 
    nationwide power generation increased by approximately 11.7% over the Previous Year. Overall, 
    the power supply was tight across the country in 2011, with shortages more severe in certain 
    areas and during certain periods primarily due to a number of factors such as the decline in 
    hydropower output, tension in the supply of thermal coal, imbalance in the structure of power 
    resources and power grid as well as rapid growth in the economy and power demand. Although the
    utilisation hours of power generating facilities continued to rise, the profitability of 
    coal-fired power enterprises was significantly undermined as the prices of coal for power 
    generation increased substantially and stayed high. The Group maintained a certain level of
    profitability despite the impact on its power generation business under such a challenging 
    business environment.

(i) Maintenance of Safe and Stable Power Production

    During the Year, total power generation of the Group amounted to 203.7156 billion kWh, 
    representing an increase of 14.14% over the Previous Year. The accumulative on-grid power 
    generation amounted to 192.1434 billion kWh, representing an increase of 14.22% 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 
    2,183.9 MW. Utilisation hours of power generation amounted to 5,376 hours, an increase of 
    379 hours year-on-year. No casualties or material damage to the facilities occurred to the 
    Group during the course of power production during the Year. The equivalent availability 
    coefficient of the operational generating units amounted to 93.64%.

(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 generating 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 319.69 g/kWh, 
    representing a decrease of approximately 3.90 g/kWh over the Previous Year. 
    Consolidated electricity consumption rate of power plants was 5.74%, representing a decrease 
    of 0.08 percentage-point year-on-year. The desulphurisation facilities operation rate and an 
    overall desulphurisation efficiency rate amounted to 99.54% and 93.76%, 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 9.90%, 5.01%, 6.06% and 20.48% year-on-year 
    to 0.38 g/kWh, 1.33 g/kWh, 0.12 g/kWh and 60 g/kWh, respectively, which were lower than the 
    national average levels.


Please visit http://www.prnasia.com/sa/attachment/2012/05/20120504141307290874.pdf for 
the bar chart.


(iii) Reinforced Economic Analysis and Improved Operational Management Efficiency

    During the Year, the Company continued to encounter various unfavourable situations such as 
    rising and high coal prices and inability to realize tariff adjustments target. Faced with 
    such an ongoing challenging operating environment, the Company closely monitored the market 
    situation, actively conducted researches on budget plans, strengthened internal management 
    and adjusted its strategies to adapt the external environment for pushing forward production 
    and operation in a rigorous manner: (1) Management accountability was implemented 
    level-by-level, and targets of power generation were achieved.The accumulated utilisation 
    hours of generating units amounted to 5,376 hours, an increase of 379 hours year-on-year; 
    (2) Through measurements such as developing economical coal to secure fuel supply, 
    enhancing coal blending and mixed burning and setting up an improved platform on fuel 
    management indices, fuel costs were effectively controlled; (3) Cash allocation and capital 
    availability according to needs were improved, loans were repaid on a timely basis to 
    reduce capital sedimentation, optimise loan portfolio and lower capital costs.

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

    During the Year, 14 power projects of the Company were approved by the State including three 
    coal-fired power projects with an approved total capacity of 1,834 MW, four hydropower 
    projects with an approved total capacity of 1,054.6 MW, five wind power projects with an 
    approved total capacity of 342 MW, and two photovoltaic power projects with an approved 
    total capacity of 40 MW. Details on the approved projects are as follows:

     --  Coal-fired power projects: two 350 MW generating units at Shizhu Coal-fired Power 
         Project in Chongqing; two 452 MW generating units at Jiangbin Gas Thermal Power 
         Project in Shaoxing; and two 115 MW generating units at Xincheng Gas Thermal Power 
         Project in Jiangshan.

     --  Hydropower projects: 850  MW  generating units at Huangjinping Hydropower Station
         Project in Sichuan; 9.6 MW generating units at  Bodui Hydropower Station Project in
         Tibet; 125 MW generating units at Haokou Hydropower Station Project in Chongqing; 
         and 70 MW generating units at Jiaomutang Hydropower Station Project in Guizhou.

     --  Wind  power projects: 150 MW generating units at Wanshengyong Wind Power Project in 
         Hebei; the Phase 3 project for 48 MW generating units at Faku Wind Power in Liaoning;
         the Phase 1 project for 48 MW generating units at Shengjiadun Wind Power in Qingtongxia, 
         Ningxia; the Phase 1 project for 48 MW generating units at Jishang Wind Power in 
         Jiangxi; and 48 MW generating units at Songmenshan Wind Power Project in Jiangxi.

     --  Photovoltaic power projects: the  Phase 2 project for 20 MW generating units at 
         Qingtongxia Photovoltaic Power in Ningxia and the Phase 1 project for 20 MW generating 
         units at Golmud Photovoltaic Power in Qinghai.

     --  Coal mine projects: Phase 2 project with annual output of 20 million tonnes for 
         Shengli Coal Mine East Unit 2 in Xilinhaote, Inner Mongolia.
    
    In 2011, a number of major power generation projects of the Company commenced operation 
    one after another, with newly installed capacity amounting to approximately 2,183.9 MW:

     --  Coal-fired power project: newly installed capacity of 600 MW, including two 300 MW
         generating units at Linfen Thermal Power Company;

     --  Hydropower projects: newly installed capacity of 989.7 MW, including four 150 MW 
         hydropower generating units at Yinpan Hydropower Station in Chongqing, 150 MW 
         hydropower generating units at Liguo, in Chengdu, one 100 MW hydropower generating 
         units at Malutang and two 65 MW hydropower generating units at Shimenkan of Yunnan 
         Electric Power Company Limited and a 9.7 MW hydropower generating units at Yuneng Group;

     --  Wind power projects: newly installed capacity of 834.2 MW, including 345 MW generating 
         units at Hebei Wind Power Company, 194.25 MW generating units at Inner Mongolia Wind 
         Power Company, 246 MW generating units at Liaoning Wind Power Company, 28 MW 
         generating units at Fujian Wind Power Company, and 21 MW generating units at Shanxi 
         Zuoyun Wind Power Company; and

     --  Photovoltaic power projects: newly installed capacity of 30 MW, including 30 MW 
         generating units at Qingtongxia Photovoltaic Power Project in Ningxia.

    As at the end of 2011, the generation capacities of coal-fired  power, hydropower, wind 
    power and photovoltaic power  accounted for  84.08%, 12.54%, 3.30% and 0.08% of the 
    Company's installed power generation capacity, respectively. As compared to the Previous 
    Year, the proportion of capacity in clean and renewable energy increased to 15.92%, 
    representing an increase of 4.10 percentage points year-on-year, making the Company's 
    power generation structure further optimised.

(2) Major Financial Indicators and Analysis

(i) Operating Revenue

    During the Year, revenues from electricity sales and heat sales of the Group accounted for 
    approximately 89.92% of the consolidated operating revenue of the Group. Of which, revenue 
    from electricity sales accounted for 88.93% of the consolidated operating revenue.

    During the Year, revenues from electricity sales and heat sales of the Group amounted 
    to approximately RMB64,367 million and RMB719 million, respectively, representing 
    increases of approximately 20.10% and 33.23% 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 5.1% over the Previous 
    Year, and the operating revenue from electricity increased by approximately RMB3,150 million 
    accordingly. The increase in on-grid power generation resulted in the increase of 
    approximately RMB7,623 million in the Group's revenue.

(ii) Operating Costs

    During the Year, the power fuel expenses incurred by the Group amounted to RMB41,160 
    million, representing an increase of RMB9,695 million as compared to RMB31,465 million 
    in the Previous Year. The increase is mainly due to: 1) an increase of RMB4,435 million
    in fuel cost caused by the increase of 21.946 billion kWh in on-grid coal-fired power
    generation over the Previous Year; 2) an increase of RMB5,260 million in fuel cost caused 
    by the increase of RMB29.61/MWh in unit fuel cost over the Previous Year.

(iii) Operating Profit

    During the Year, operating profit from electricity and heat amounted to approximately 
    RMB11,022 million, while the gross profit margin was approximately 16.93%, representing a 
    decrease of approximately 2.82% over the Previous Year.

2.  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 advanced
    technologies in the world 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 
    chemical products. The final product of the project is 460,000 tonnes/year of polypropylene 
    and other by-products.

    In the first half of 2011, the Duolun Coal Chemical Project succeeded in the first trial 
    run of two gasifiers. The accomplishment of certain critical phases such as the successful 
    operation of  the response system of the methanolto-propylene (MTP) facility on the first 
    attempt and the production of alkene with qualified constituents marked significant 
    breakthroughs in the development of the core technologies of the Duolun Coal Chemical 
    Project. In June 2011, the project produced qualified methanol, and on 28 September 2011, 
    the project's  entire  device was ready for full operation to produce qualified polypropylene 
    end-product. On 16 March 2012, the Duolun Coal Chemical Project underwent trial production. 
    It is expected that the project will become a new profit growth  point of the Group upon 
    its successful development and operation.

(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 City and cities along the gas 
    transmission pipeline. As a political, cultural and financial centre of the PRC, 
    Beijing City has a strong demand for clean energy such as natural gas, given the city's 
    higher requirement for the quality of the air environment. The Company believes that 
    following the completion of the Keqi Coal-based Natural Gas Project, it will benefit from 
    the growing demand for clean energy in Beijing City and the cities along the gas
    transmission pipeline, thereby increasing the overal profitability of the Company.

    During the Year, the Keqi Coal-based Natural Gas Project achieved its targets for the 
    trial operation of air separation and ignition of the first gasifier. On 26 August 2011, 
    the No. 8 gasifier at gasification plant was ignited successfully on its first attempt, 
    and on 28 November 2011, the air separation plant made a successful test run and
    produced oxygen and nitrogen that met the required standards. Other construction works 
    are proceeding at an accelerated speed, with the aim of launching the project for 
    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 in Liaoning Province and nearby cities such as Tieling, Fushun, 
    Benxi and  Fuxin.  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. Following the 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. 
    During the Year, the Fuxin Coal-based Natural Gas Project successfully hoisted its 
    first gasifier. Other construction works are proceeding at an accelerated speed, with 
    the aim of launching the project for operation in 2013.

(4) The High-Aluminium Pulverised Fuel Ash Project of Inner Mongolia Renewable Energy Resource 
    Development Company Limited, constructed by the Company with controlling interests,
    proceeded smoothly. During the Year, the project was fully completed and is currently 
    achieving continuous production of alumina and the quality of product has been 
    verified by a professional assessment institution. The project provides technical 
    support to the Group's deployment of its recycling 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 coal chemical and coal-based natural gas projects including the Duolun Coal Chemical
    Project, the Keshiketeng Qi Coal-based Natural Gas Project and Fuxin Coal-based Natural 
    Gas Project. In particular, the annual production capacity of Phase 1 project amounted 
    to 10 million tonnes. The Phase 2 project with an annual production capacity of 20 million 
    tonnes was approved by the National Development and Reform Commission in March 2011, 
    and was the first  approved largest single open-pit coal mine in the PRC. During the 
    Year, the raw coal output of the Shengli Coal Mine East Unit 2 reached 10.71 million tonnes.

    During the Year, Inner Mongolia Baoli Coal Mine, in which the Company has controlling 
    interests, produced 1.31 million tonnes of coal. 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 increase the self-sufficiency ratio of coal consumption of the Company's 
    power plants.

    The Tashan Coal Mine and the Yuzhou Coal Mine, constructed by the Company with holding 
    interests,  produced  23 million tonnes and 7.2 million tonnes of raw 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 further increased. During the 
    Year, operating revenue from the coal business after consolidation elimination amounted to 
    approximately RMB2,938 million, accounting for 4.06% of the Group's total operating revenue, 
    representing an increase of approximately 4.05% over the Previous Year.

(ii) Operating Costs

    During the Year, operating costs in the coal business amounted to approximately RMB2,331 
    million, representing a decrease of approximately RMB363  million over the  Previous Year. 
    The decrease in operating costs was mainly attributable to the increase in coal exports of 
    its self-owned coal mines and the decrease in the unit cost of coal per tonne.

(iii) Operating Profit

    During the Year, operating profit from the coal business amounted to approximately RMB606 
    million, while the gross profit margin was approximately 20.63%, representing an increase 
    of approximately 16.05% over the Previous Year.

C. MANAGEMENT'S REVIEW ON CONSOLIDATED OPERATING  RESULTS

1. Operating Revenue

   During the Year, consolidated operating revenues of the Group amounted to approximately 
   RMB72,382 million, representing an increase of approximately 19.30% over the Previous Year. 
   Of the operating revenue, revenue from electricity sales increased by approximately 
   RMB10,773 million.

2. Operating Costs

   During the Year, total operating costs of the Group amounted to approximately RMB62,829 
   million, representing an increase of approximately RMB11,360 million, or approximately 
   22.07%, over the Previous Year. Among the operating costs, fuel costs accounted for 
   approximately 70.80%,  and depreciation accounted for approximately 13.70% of the 
   operating costs.

3. Net Finance Costs

   During the Year, the Group's finance costs amounted to approximately RMB7,102 million,
   representing an increase of approximately RMB1,729 million or approximately 32.17% over the 
   Previous Year. The significant increase was mainly due to an increase in borrowings and the 
   cessation of capitalisation of interest 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 
   RMB3,710 million, representing a decrease of approximately 21.07% over the Previous Year. 
   Net profit attributable to equity holders of the Company amounted to approximately 
   RMB1,971 million, representing a decrease of 23.29% over the Previous Year. The decrease 
   in the Group's profit was mainly due to the increase in fuel costs and finance costs.

5. Financial Position

   As at 31 December 2011, total assets of the Group amounted to approximately RMB247,697 
   million, representing an increase of approximately RMB34,782 million as compared to the 
   end of 2010. 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 RMB196,965 million, representing
   an increase of approximately RMB22,483 million over the end of the Previous Year. Of the 
   total liabilities, non-current liabilities increased by approximately RMB13,351 million 
   over the end of the PreviousYear.The increase in total liabilities was mainly due to an 
   increase in the Group's borrowings so as to meet the needs of daily operations and 
   infrastructure construction. Equity attributable to equity holders of the 
   Company amounted to approximately RMB38,941  million,  representing an increase of 
   approximately RMB8,091 million over the end of the Previous Year. Net asset value per 
   share attributable to equity holders of the Company amounted  to  RMB2.93,  representing 
   an increase of approximately RMB0.42 per share over the end of the Previous Year.

6. Liquidity

   As at 31 December 2011, the asset-to-liability ratio of the Group was approximately 
   79.52%. The net debt-to-equity ratio [i.e. (loans + short-term bonds + long-term bonds 
   - cash and cash equivalents)/ total equity] was approximately 315.88%.

   As at 31 December 2011, the cash and cash equivalents held by the Group amounted to 
   approximately RMB4,467 million, of which deposits equivalent to approximately 
   RMB308 million were foreign currency deposits. During the Year, the Group had no
   entrusted deposits or overdue fixed deposits. As at 31 December 2011, short-term loans 
   of the Group amounted to approximately RMB21,524 million, bearing annual interest rates 
   ranging from 1.31% to 8.50%. Long-term loans  (excluding those repayable within one 
   year) amounted to approximately RMB117,654 million and long-term loans repayable within  
   one year amounted to approximately RMB15,202 million. Long-term loans (including 
   those repayable within one year) were  at annual interest  rates ranging from  1% to 
   7.76%. Loans of approximately RMB1,570 million were denominated in US dollar, and 
   loans equivalent of approximately RMB563 million were denominated in HK dollar 
   ("HK$"). The Group constantly pays close 
   attention to foreign exchange market fluctuations and cautiously assesses foreign 
   currency risks.

7. Welfare Policy

   As at 31 December 2011, the number of staff of the Group totalled 19,365. During the Year, 
   the costs of salaries and staff welfare of the Group amounted to RMB2,367 million. The 
   Group adopts the basic salary system on the basis of position-points salary distribution. 
   The Group carries out comprehensive accountability management and the performance appraisal
   for all staff of its subordinated enterprises based on a profit accountability system. 
   The Group is concerned about personal growth and occupational training of its staff, 
   and implements a reward mechanism of "unification  of training, usage and remuneration". 
   Led by the strategy of developing a strong corporation with talents, the Group relies on 
   a three-tier management organizational structure and implements  an all-staff training 
   scheme for various levels.

D. OUTLOOK FOR 2012

   The year 2012 marks the final year for the Company to achieve the targets for the second 
   phase of its  medium-term  development  plan, a year for both opportunities and 
   challenges. The Company will meet new challenges and make new strides by leveraging new 
   opportunities under new situations.

   Looking forward to 2012, the Company will encounter opportunities while facing challenges 
   at the same time. With respect to challenges, firstly, China's economic growth will slow 
   down due to the impact of the structural adjustment of the macro economy. Secondly, 
   the development of enterprises will be limited due to lack of funds. Thirdly, the State 
   issued higher standards on energy conservation and emissions reduction. With respect to 
   opportunities, firstly, pressure on the Company's operations is expected to be alleviated. 
   Secondly, the advantage of diversified businesses will be revealed gradually. Thirdly, 
   the efficiency of management will be further improved.

   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 "optimising 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, pushing forward the development 
   of alumina, and securing a complementary development of railway, port and shipping".
   The Company will commit effort into the following six areas to reach its annual 
   work targets.

1. Deepen the Building of a "Four-feature" Enterprise

   The Company will accelerate the establishment of 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 strive to increase power generation, strictly control the price of thermal 
   coal, strengthen cost controls, strive for policy concessions and to turn loss into profit
   for loss-making enterprises. It will further improve the comprehensive budget management, 
   with the objective of enhancing profits. Focusing on capital flows and emphasising cost 
   controls, it will increase power generation with all efforts and to control coal prices 
   by applying various measures, with an aim to enhance the profitability of the Company. 
   In 2012, the Company will strive to accomplish a power generation of 205 billion kWh and 
   realize an increase in sales revenue of more than 15% year-on-year.

3. Continuously Optimise the Business Structure

   The Company will continue to strengthen its power generation business, excel in its non-power
   businesses and promote synergistic diversification. In its power generation business, 
   the Company will step up the development and  exploration of alternative energy, 
   clean energy and renewable energy to increase their proportion in the total installed
   capacity. 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. The Company will accelerate the commercial operation of the 
   Duolun Coal Chemical Project, Keqi Coal-based Natural Gas Project and the project of 
   alumina-extraction from high-aluminium pulverised fuel ash by the renewable energy 
   company, to increase their contribution to the overall profitability of the Company and 
   further propel the Company into 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, step up efforts in the integration of the Company's 
   internal assets, further optimise the Company's equity structure and actively pursue
   acquisitions of quality assets, with a view to achieving maximum investment returns 
   for the Company.   

5. Continuously Intensify Energy Conservation and Emissions Reduction

   Adapting the plan of energy conservation and emissions reduction during the  
   "Twelfth Five-year" period, the Company is accelerating the construction of key projects,
   enhancing the comparison and selection of  technologies in environmental protection 
   and efficiency improvement, and participating in market research with regard to the 
   trading of carbon emission and pollution discharge rights. Focusing on the denitration 
   transformation, the Company will manage and schedule energy conservation for 
   coal-fired generating units, basins for hydropower stations and regional optimization 
   for wind farms.

6. Establish Comprehensive Internal Control System

   In 2012, 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 of "job duties, 
   mechanisms and systems, standards and criteria, operation flows, evaluation and auditing 
   and performance appraisal", the Company will complete the establishment of operation 
   flow management system to optimise the flow, and will complete the compilation of the 
   "Internal Control Management Manual", "Risk Control Manual" and "Internal  Control 
   Evaluation Manual" to carry out comprehensive internal control evaluations and audits 
   so as to carry out a transformation from external supervision to internal supervision.

Fulfillment of Social Responsibilities

MAINTAINING SAFE PRODUCTION IN A STABLE MANNER

Enhancing the Production Safety System
The Company consistently adheres to the production safety policy that treats "safety and 
prevention as top priorities complemented with comprehensive maintenance". It continued to 
promote the long-term production safety mechanism with its own characteristics, 
conduct comprehensive safety supervision as well as investigation and government of 
potential risks, strengthen the training of all staff in safety knowledge, create a safe 
environment and steadily promote the building of a fundamentally safe enterprise, thereby 
laying a solid foundation for sustainable, stable and rapid development of the Company.

Safety Philosophy:

-- All accidents can be avoided.

-- Hazards can be eliminated, risk can be prevented, errors should be controlled, and 
   accidents can be avoided.

-- Safe production depends on everyone at a worksite.

-- Safe production is everyone's responsibility, regardless of position.

-- There will always be someone accountable for every matter, some documents to support 
   every matter, someone to supervise every matter and some rules to follow for every matter.

Safety Methodology:

-- Three Evaluations and One Control: Safety evaluation, economic evaluation, environmental 
   protection evaluation, and control and analysis of hazards.

-- Three Highlights and One Implementation: highlights of work tasks, risks, and measures; 
   safety risk control measures are properly implemented.

-- Information management: The network platform is used to achieve standardization, 
   digitalisation and institutionalization of data and information, so any incident is 
   recorded immediately and checked as it occurs, realize real-time control and process
   management.

-- Safety Interview: Senior leaders will  have a warning interview with the responsible 
   person of the Company if there is great potential hazards in safe production.

Safety Mechanism:

-- Two Databases and Two Systems: Safe production issue database, and safe production 
   expert database; case closure system and supervision system for production safety issues.

-- Performance Management: compile and analyze operational data and data on equipment 
   reliability indicators carry out production safety assessments. Results are incorporated
   into the "Two Databases" and are linked to personal compensation rates and promotions.

-- Emergency Management: The Company has strengthened the preparation of its emergency plans
   and training, and enhanced the building of emergency rescue teams. Emergency Case 
   Management Rules and emergency plans for coal chemicals, shipping, and coal mining 
   businesses, as well as the information network incidents system have also been prepared.

Management System:

-- Spot Inspection and Regular Maintenance: An equipment responsibility system is 
   implemented through a whole-life and whole-process management approach, where each spot 
   inspector is accountable for each piece of equipment.

-- Centralized Control and Operations System: Operations, and control of equipment and 
   systems are centralized.

-- Project Management System: Each maintenance item is treated as a project, where each item 
   is carefully planned beforehand, process management is implemented during performance, 
   and a summarization is made afterwards. By doing "Five Confirmations and One Honoring", 
   we change from planned maintenance to condition-based maintenance.

Building a Safe Production Environment

The Company has built and implemented an effective investigation mechanism to identify and 
eliminate potential safety hazards, promoted 6S production team  management, and improved
safety facilities. By means of monthly routine inspections and irregular special 
inspections, we have prevented and controlled occurrence of accidents effectively through
strengthening the management of all production elements including people, equipments, 
materials, methods and environment to build a company with safe production environment.

In 2011, the Company concentrated on creating an intrinsically safe enterprise, and carried 
out the work in accordance with  three  levels of  compliance, i.e., indicator compliance,
management compliance, and culture compliance. Twenty-one enterprises took the lead to pass 
the indicator compliance inspection, and the Douhe Power Plant and the Pengshui Hydropower 
Station satisfied the "management compliance" level. The Company also launched the 
standardization production of safe production by establishing a long-standing potential 
hazard inspection and governance mechanism. The Company strengthened the management and
control of high-risk operations, and throughout the year no accident of negligence has 
occurred, keeping the good and steady situation of safe production.

Enhancing Production Equipment Management

In equipment management, the Company has formed a spot inspection-based management model 
supplemented by operations management and maintenance management. Tools, methods, and 
standards are specified to carry out the whole dynamic management of equipment.

AWARDS  IN THE NATIONAL  LARGE COAL-FIRED POWER UNIT  CONTEST

Category          Level         Unit                   Proportion
600MW class       Third prize   Unit #1,               1/30
  supercritical                   Wushashan Power  
  units                           Generation Company

600MW class       First prize   Unit #4 Tuoketuo       3/24
  subcritical                     Power Generation  
  units                           Company 

                  Second prize  Unit #1, Wangtan 
                                  Power Generation  
                                  Company

                  Third prize   Unit #1, Tuoketuo 
                                  Power Generation
                                  Company

600MW class       Second prize  Unit #8, Tuoketuo      2/11
  air-cooling                     Power Generation  
  units                           Company

                  Third prize   Unit #6 Tuoketuo 
                                  Power Generation
                                  Company

600MW class       Second prize  Unit #3, Shentou       1/2
  Russia                        Power Generation 
  (Eastern                      Company
  Europe)
  made units

300MW class       First prize   Unit #1, Hohhot        8/43
  condensing                      Thermal Power
  units                           Company

                                Unit #2, Zhangjiakou 
                                  Power Plant

                  Second prize  Unit #4 and Unit #5, 
                                  Zhangjiakou Power
                                  Plant

                  Third prize   Unit #2, Hohhot 
                                  Thermal Power  
                                  Company

                                Unit #1, Unit #6 
                                  and Unit #8, 
                                  Zhangjiakou Power
                                  Plant

300MW class       Second prize  Unit #3 and Unit       2/5
  air-cooling                     #4, Yungang Thermal
  units                           Power  Company


In 2011, the Company revised its Equipment Defect Management Rules to improve the maintenance
quality of equipment, reduce the incidence of equipment defects, and improve the prevention 
and control of equipment failures. The Company firmly established the "zero  defect" management 
philosophy, actively carried out technological innovation for equipment, implemented 
reliability information management of auxiliary equipment in addition to of the implementation 
of the reliability management of main machines, constantly improved the multi-dimensional 
statistical analysis of equipment, and effectively propelled the equipment maintenance process.

Improving Production Safety Quality

The Company considers safety education and training as a policy of strengthening the 
foundation of safe production, uses safety warnings every time and everywhere and visual 
systems to create a safe atmosphere and improve the quality of the safety of all personnel. 
In 2011, the Company organized the "a case every week"  campaign, the communication on 
typical experience and the discussion of "four  responsibilities"  in safe production, 
and through these efforts staff at all levels have obtained a more in-depth understanding 
and knowledge of safety management responsibilities. Professionals from the China Academy 
of Safety Science and Technology and the State Administration of Coal Mine Safety were 
invited to carry out professional training for registered safety engineers and coal mine 
safety qualifications.


Please visit http://www.prnasia.com/sa/attachment/2012/05/20120504141417147816.pdf for 
the circle chart. 


CONTINUOUSLY PUSHING FORWARD GREEN OPERATION

Responsibility 

Faced with global warming, frequent abnormal weather and the depletion of fossil fuels, 
exploring energy-conserving  development,   clean  development and sustainable development
have become a global consensus. The power industry, as major player in resource consumption 
and pollutant emissions, is assuming an extremely important responsibility. In promoting a 
structural adjustment of energy conservation and emissions reduction as the major task, 
the Company has responsibilities in actively carrying out energy-saving research in the 
low-carbon economy technologies, implementing various ecological and environmental protection 
measures, and achieving conservation-based development and clean development.

Philosophy

We have always adhered to the corporate mission of "providing clean power to light a better 
life",  and the construction of an intrinsically safe, resource-saving, environmentally-friendly
and technically-innovative enterprise. We make great efforts to promote the "Two-type" social
construction, incorporate energy saving and omission reducing policy into the Company's 
production, operations and management and strive to achieve the coordinated development of 
economic efficiency and environmental protection.

Strategy

We implement the national energy saving and emission reduction policy strictly, promote the 
Energy Conservation and Low-carbon Actions of Ten Thousand Enterprises, continuously optimize 
the industrial structure, make efforts to strengthen environmental management and ecological 
protection, actively adopt energy saving and environmental protection technologies, implement 
energy saving and emission reducing  equipment  modifications,  and  steadily improve the 
Company's comprehensive energy efficiency levels.

Deepening Environmental Protection Management

From the perspectives of production environment assessments, environmental protection audits 
and building a "four-type" enterprise, the Company continues to make great efforts to 
build long-standing environment protection management mechanisms, to set up an energy saving 
and emissions reduction work system, and to set up supervision and performance assessment 
systems that cover all production sectors. We have strengthened environment protection data 
online supervision, field audits and technical monitoring work, implemented whole-process, 
digitalized, normalized environmental management, and achieved a dynamic correction and 
proactive prevention system for environmental issues, thus continuously improving the 
environmental protection level.

In 2011, the Company prepared and distributed "Datang Power Pollutant Emissions Reduction Plan
during the 12th Five-year Plan", conducted environmental protection audits in 40 subordinate 
enterprises, implemented field environmental assessment of eight enterprises, and included the 
problems found into the question bank for closed-loop corrections. We established an 
environmental information communication and supervision mechanism, prepared "Environmental 
Protection Dynamics" periodically, and released environmental policy and management 
requirements and environmental dynamics of basic-level enterprises in a timely manner. In 
2011, the Zhangjiakou Power Plant, Yuncheng Power Generation Company, Tuoketuo Power 
Generation Company, Honghe Power Generation Company and Daba Power Generation Company 
were awarded the title of "provincial-level advanced enterprise" in energy saving during 
the 11th Five-year Plan.

Conserving Resource Use

The Company emphasises on the rational allocation and the comprehensive use of resources 
and energy, actively introduced new energy-saving and emissions-reducing technologies 
and equipment, and pays special attention to recycling ash, coal ash, desulfurized plaster, 
and wastewater.

In 2011, combined with the Company's production and operation characteristics and the 
environmental protection situation, we promoted the implementation of the Ten Thousand 
Enterprises Energy Conservation and Low-carbon Actions Plan of effectively control energy 
consumption in operations, while actively seek new ways of conserving energy and reducing 
emissions. Through the introduction of heat pump technology, waste heat use and other new 
technologies and contracted energy management and other new methods, we strengthened the 
comprehensive utilization of renewable resources and further reduced the Company's energy 
consumption levels.

Reducing Pollution Emissions

In strict compliance with the relevant national provisions on pollutant emission, the Company 
developed the "Major Pollutants Emission Reduction Plan for the 12th Five-year Plan",  
prepared the "Total Volume Auditing and Verification Manual",  established weekly 
desulfurization reports to announce the operating conditions of desulphurization facilities 
and emissions compliance of the Company, and took the control of the total volume of major 
pollutants as a key task.

In 2011, the Company continued to promote the retrofitting of low-nitrogen burners and 
denitrification and desulfurization systems, and strengthened the performance evaluation 
of pollutant emissions. The Company further promoted desulfurization, wastewater treatment, 
and other environmental technology research and project implementation in its 
non-power-generation division. Pollutant emission rates, including that of dusts, sulfur 
dioxide, nitrous oxide and wastewater, are far below the national average. The Company has 
not encountered any environmental pollution incidents or fines. Among which the Tuoketuo 
Power Generation Company in Inner Mongolia reduced emission of carbon dioxide of 110,000 
tonnes in 2011, and was awarded the title of "Asia's Power Plant with Best Environmental 
Performance".

Strengthening Ecological Protection

The Company fully implements international conventions and resolutely implements national 
environmental policies. It integrates industrial engineering, production operations, and 
ecological protection. The Company diligently carries out environmental impact assessments 
prior to the commencement of construction project and environmental protection reviews upon 
completion, focuses on water and soil conservation, biodiversity, and vegetation protection 
during construction, while making great efforts to balance the utilization of resources 
and environmental protection in all-win harmony. For example:

-- The Inner Mongolia Xilinhaote Mining Company strengthened its water and soil preservation 
   in mining areas, implemented turning immature soil into cultivated land measures, optimized 
   the ecological system structure, and built an eco-tourism mine.

-- The Inner Mongolia Duolun Coal Chemical Company, located in the heart of a grassland, 
   paid great attention to ecologic protection during construction and operations, and built 
   an environmentally-friendly demonstration project.

-- The Yunnan Power Company strictly implemented the water and soil conservation and 
   protection of rare species, trying to minimize its impacts on the environment.


Human Resources Overview

TALENT CULTIVATION

1. Composition of Employees

                                                             2011
Total number of in-service employees                       19,365
Number of departed/retired employees for                    5,467
  which the Company has to bear costs


                            Specialty
                                                         Number of
Category                                                 Employees

Economics and management                                     2,616
Science and technology                                      11,855
Literature and history                                         622
Others                                                       4,272

                        Educational Background

                                                         Number of
Category                                                 Employees

Doctoral graduate and above                                     31
Postgraduate                                                   392
Undergraduate                                                7,296
College graduate                                             5,436
Secondary technical school                                   1,964
Vocational school                                              806
Senior high school                                           1,711
Junior high school                                           1,729


2. Management

The Company has established a scientific view towards talented personnel which emphasizes 
that "human  resources are the Company's most valuable resources";  remains committed  to 
its "people-focused" approach; and carries forward the concept that "Datang Power is a 
platform on which staff can showcase their sense of responsibility and talents". The 
Company continues to improve its organizational structure, strengthen innovation in its 
management mechanism, optimize the allocation of human resources, revitalize talented 
personnel and strengthen different training programmes for  various levels so as to offer 
smooth career paths for staff development that would enable individual growth among staff 
alongside the growth of the Company and sharing the achievements in the Company's 
development. These provide organizational assurance and talented staff support for 
the implementation of the Company's strategy of "focusing on the power generation business 
as its core development, complemented by synergistic diversifications".

The Company has completed the compilation of its "Twelfth Five-year Plan" for human 
resources, launched the "talent forest" plan in a profound way and improved the second-grade 
reserve talent pool comprising ten categories. It continued to select experts to build a 
pool of experts comprising "112" talented staff from the Corporation, safe production experts 
from the Company and experts from the power plants with  technical skills. It deepened the 
policy for the selection of "chief staff"; further expanded the paths of growth of talented 
staff; continued to care about the vital interests of all staff; and continued to improve 
remuneration management and strengthen the incentive and pay schemes to fully mobilize the
work enthusiasm of staff.

3. Training

The Company vigorously implemented a strategy which focuses on talent development to ensure 
that the business continues to thrive with the establishment of three teams of talented 
staff. It employed training programmes as an important tool to improve the overall quality 
of employees, enhance corporate cohesion and shape an excellent corporate culture. By 
taking a number of initiatives such as the compilation and the implementation of third-grade 
training programmes, the development of well-targeted professional training and the 
establishment of a platform to attract a pool of talented staff, and by adopting a number 
of supporting measures such as the establishment of an ongoing training mechanism, the 
constant reinforcement of the training infrastructure and the increased commitment to 
training, the Company pushed forward the development of its vocational training 
programmes in a comprehensive and vigorous manner. These initiatives have helped ensure 
that there is enough talented staff to drive the implementation of the Company's strategy 
to a deeper level to achieve synergistic diversifications. In 2011, the Company invested a 
total of RMB38.4763 million in training. Its training courses were cumulatively attended 
by 253,808 man-times, of which 32,439 were on corporate management and professional 
skills; 164,017 on production skills; and 9,544 on other skills. A total of 1,925 employees 
of the Company achieved professional and technical qualification assessments during the year, 
of whom 101 received  senior  titles; 313, intermediate titles; and 1,511, junior titles. 
60 employees acquired professional skill qualifications from the National Unified Entrance 
Examinations; 2,288 obtained occupational skill appraisals through the Company's system, of 
whom 59 acquired senior technician qualifications; 256, technician qualifications; and
638, senior engineer qualifications. During the year, 362 employees attended the 
Corporation's training programmes for on-the-job qualifications.

4. Implementing Measures

Incentive mechanism. The Company adopted various incentive mechanisms to attract, retain
and inspire talented staff. It applied a differentiated salary allocation policy and continued 
to implement a subsidy policy by providing allowances for staff working in nuclear power 
plants, remote areas, harsh environment as well as the chemical industry as an incentive to 
lure professional and talented technicians to join the nuclear power industry. It also helps 
retain staff working in remote areas or under harsh conditions as well as those working in 
the coal chemical industry. The Company implemented a comprehensive accountability management 
system and a performance appraisal system  covering all staff. Through the systems the 
Company can enhance the appraisal and evaluation process so that "accurate positioning,
delicacy management and precise assessment"  can be achieved. They also help make the 
objectives and responsibilities of staff more specific, more clearly defined and more 
visible. Results of the performance appraisals are linked to salary and career advancement 
as a way to motivate staff.

5. Achievements and Awards

Title of Outstanding
Individual                                            Granted by
Government's Special              1            Ministry of Human 
Allowances Receiver                         Resources and Social 
                                                        Security
Technical Expert of Central       8           State-owned Assets 
Enterprise                                       Supervision and 
                                                  Administration 
                                                      Commission

Special Award for New Star        1            China Electricity
in Power Education Training                              Council
Technical Expert of the           36                China Datang
Corporation                                          Corporation
Outstanding Technical             54                China Datang
Contestants of the                                   Corporation
Corporation


BOARD, SUPERVISORY COMMITTEE AND SENIOR MANAGEMENT

Liu Shunda                  Aged 56, is a professor grade senior engineer with a post-graduate
Chairman and Non-executive  degree. He is currently Chairman and Party Secretary of China Datang
Director                    Corporation. 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 Vice President 
                            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. 
                            Mr. Liu possesses extensive knowledge and diversed experience.


Hu Shengmu                  Aged 51, university graduate, is a senior accountant. He is 
Non-executive Director      currently the Party Committee  Member  and Chief Accountant 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.


Cao Jingshan                Aged 49, graduated from Dalian University of Technology majoring 
Vice Chairman,              in technical economics and management. He holds a doctorate degree 
Executive Director          and is a senior economist. He is currently President of the Company.
and President               Mr. Cao commenced his career in 1981 in Yuanbaoshan Power Plant and 
of the Company              successively held the office of 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 December 2003. Since 
                            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 production and operation and management.


Fang Qinghai                Aged 57, post-graduate, is a senior engineer. He is currently the 
Non-executive Director      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.


Zhou Gang                   Aged 48, graduated from East China Institute of Water Conservancy 
Executive Director, Vice    (currently known as Hehai University) with a master degree of 
President of the            technology and a master degree of business administration, is a 
Company and                 senior engineer. He is currently Vice President of the Company and 
Secretary to the Board      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.


Liu Haixia                  Aged 51, graduated from North China Power College majoring in power 
Non-executive Director      plant thermal energy. He subsequently pursued a postgraduate degree 
                            in Business Administration in 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 45, graduated from North China Power College majoring in 
Non-executive Director      thermal dynamics and received 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 then 
                            became 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 64, university graduate, is a senior engineer. He is currently 
Non-executive Director      the Consultant of Hebei Construction & Investment Group Co., Ltd. 
                            He started his career in 1968 and had successively worked in the 
                            County Commission of Zeku of 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. With  his longstanding involvement in '
                            corporate management and planning management, Mr. Su is well 
                            experienced in corporate management and industrial planning and 
                            investment.


Ye Yonghui                  Aged 60, is presently the Deputy Chief Economist of Hebei 
Non-executive Director      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 up to present, 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 52, a holder of MBA, graduated from Northeast Power College 
Non-executive Director      with a bachelor's degree in thermal dynamic and from China Europe 
                            International Business School with a 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.


Li Yanmeng                  Aged 67, graduated from the Wuhan University of Hydraulic and 
Independent Non-executive   Electric Engineering majoring in power plants and power systems, 
Director                    is a senior engineer. Mr. Li is currently the External Director of 
                            China National Coal Group Corporation and the Independent 
                            Non-executive Director of China Coal Energy Company Limited. 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 Head of the Division of 
                            Construction Coordination of 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.


Zhao Zunlian                Aged 65, a professor grade senior engineer and a master degree 
Independent Non-executive   holder in engineering, is a doctoral supervisor. Mr. Zhao is 
Director                    currently the Independent Director of Hezong Science & Technology 
                            Co., Ltd. Mr. Zhao graduated from Wuhan Institute of Hydraulic 
                            and Electric Engineering in 1969, and served as Dispatching Deputy 
                            Head, Deputy Chief and Chief of Central China Power Grid since 
                            1981, Chief Engineer of Central China Power Corporation in 1995,
                            Director of State Power Dispatching Center in 1999. 
                            Director of State Power Dispatching Center and Chief Engineer of 
                            State Grid Corporation of China in 2003, Chief Engineer of State
                            Grid Corporation of China in 2005 and Consultant of State Grid
                            Corporation of China from 2006 to 2009. He has long been engaged 
                            in production and management of the power industry, with extensive
                            experience in power generation and management.


Li Hengyuan                 Aged 69, graduated from  the School of Mathematics,  Physics and 
Independent Non-executive   Chemistry of Chengdu University of Technology, majoring in 
Director                    Analytical Chemistry. He is a senior engineer and currently Vice 
                            President of Technology Standards Committee of All-China Environment
                            Federation. Mr. Li started working in Mining and Metallurgical
                            Research Institute of Chinese Academy of Sciences in 1965. He took
                            the office of Head 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 Prize), the Ministerial and Provincial Scientific and
                            Technological Progress Award (Second Prize) and the Ministerial
                            and Provincial Scientific and Technological Progress Award 
                            (Third Prize), 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 56, holder of a bachelor's degree from Tsinghua University,
Independent Non-executive   is currently Deputy General Manager of China Energy Construction 
Director                    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 served 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 and Deputy General Manager 
                            of China Energy Construction Group Corporation and Dean of its 
                            Electric Power Planning and Design Institute. She has long been 
                            engaged in electric power design and planning, with extensive
                            experience in electric power design and planning.


Jiang Guohua                Jiang Guohua, aged 41, graduated from University of California, 
Independent Non-executive   Berkeley, with  a doctorate degree in accountancy, is currently
Director                    Professor of Accountancy of the Guanghua School of Management 
                            at Peking University,  as well  as a doctoral supervisor, 
                            Vice President of Graduate School of Peking University, Deputy 
                            Head of Account Department of Guanghua School of Management at 
                            Peking University, Executive Director of MPACC Project, Executive
                            Director of the Sixth and Seventh Session of Branch of Financial 
                            cost of Accounting Society of China, and Committee Member of 
                            Education Committee of Accounting Society of China. Dr. Jiang 
                            has long been engaged in theoretical and practice researches 
                            in the field of accountancy, and analysis of issues regarding  
                            investor protection, corporate governance and the regulation 
                            of the stock market.


Qiao Xinyi                  Aged 59, graduated from North China Power Institute majoring in 
Chairman of the Supervisory thermal power equipment. He is university educated and a senior 
Committee                   economist. He is currently the Head of the Disciplinary Division 
                            and Chairman of the Labour 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 of 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 Labour 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                Zhang Xiaoxu, aged 49, university graduate, is a senior 
Vice Chairman of the        accountant. He is currently Manager of Financial Department of 
Supervisory Committee       Tianjin Jinneng Investment Company. He used to serve as Chief 
                            Accountant of Finance Department of Liaoning Power Plant; and 
                            Deputy Head and Head of Finance Department, Deputy Chief 
                            Accountant, Chief Accountant of Liaoning Nenggang Power Generation
                            Co., Ltd., Chief Financial Officer of Tianjin SDIC Jinneng Electric
                            Power Co., LTD., and Deputy Manager of Financial Department of 
                            Tianjin Jinneng Investment Company. He has long been engaged in
                            financial management and has extensive practical working experience.


Zhou Xinnong                Zhou Xinnong, aged 43, university graduate, is a senior accountant. 
Member of the Supervisory   He is currently Deputy Director of the Finance Management 
Committee                   Department of China Datang Corporation (Person-in-Charge). Mr. 
                            Zhou used to serve as Chief Accountant and Deputy Manager of the 
                            Finance Department of the Company, Head of the Price General
                            Services Office of the Finance and Assets Management Department 
                            and Deputy Director of the Finance and Assets Management Department 
                            of China Datang Corporation.


Guan Zhenquan               Aged 47, graduated from University of Fuzhou majoring in power 
Member of the Supervisory   system. He is university educated and a senior economist. He is 
Committee                   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 Leaders and Cadres, 
                            and Head of the Labour Administrative Office of the Personnel 
                            Department of North China Power Corporation; and Deputy Party 
                            Secretary cum Secretary of the Disciplinary Committee as well as 
                            Chairman of the Labour Union of Tianjin Datang International 
                            Panshan Power Generation Company Limited. He has served as 
                            Deputy Head 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.


Fu Guoqiang                 Fu Guoqiang, aged 49, university graduate, is a senior accountant 
Vice President              and a Certified Public Accountant. He is currently Deputy General 
of the Company              Manager of the Company. He was previously Head of the Finance and 
                            Assets Management Department of Hebei Power Company and Manager of 
                            the Finance Department of North China Power Generation Corporation. 
                            Mr. Fu has been 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. 
                            Mr. Fu is concurrently serving as Director of Guangxi Guiguan 
                            Electric Power Company Limited.


An Hongguang                Aged 53, graduated from Wuhan University majoring in Administration
Vice President of           Science and Engineering with a master degree. He is a senior
the Company                 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 Plant Manager of Tangshan 
                            General Power Plant, Assistant to Plant Manager of Dou He Power 
                            Plant, Deputy Manager of the Production Department of the Company
                            and Plant Manager 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 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.


Liu Lizhi                   Aged 46, graduated from Northeast Power Institute  majoring in 
Vice President of           power system and engineering automation. He is a senior economist 
the Company                 and senior engineer with a post-graduate degree. He is currently 
                            the Deputy General Manager of the Company. In July 1994, he became 
                            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 also 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 48, graduated from North China Power Institute majoring in 
Vice President              thermal dynamics. He is a senior engineer with  a post-graduate 
of the Company              degree. 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 Zhenbiao 
                            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 58, graduated from  Beijing Broadcast and Television 
Chief Financial Officer     University majoring in industrial statistics. He is a senior 
Company                     accountant and currently 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 Zhangjiakou Power Plant. 
                            Since 1995, Mr. Wang had held various positions including Deputy 
                            Financial Manager and Manager of the Finance Department of North 
                            China Power Generation Corporation, 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, a 
special office  has been set up and staff  has been assigned to be responsible for the 
management of investor relations work,  and various channels have been set up to enable 
investors to establish contact with  the Company. During 2011, 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. In particular:

The Company met analysts and fund managers 539 man-times through results presentations and 
domestic and overseas roadshows; met analysts and fund managers 258 man-times at investor 
forums; and met analysts and fund managers 303 man-times through company visits and telephone
conferences.


MAJOR INVESTOR RELATIONS ACTIVITIES CONDUCTED IN 2011:

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

January     Deutsche Bank Access        No                         12            31
            China Conference          

            UBS 11th Greater China      No                         13            32
            Conference

March       Annual Results              Yes                         -            68
            Presentation

            Annual Results Telephone    Yes                         -            45
            Conference

            Annual Results Domestic     No                          -            97
            Roadshow

            Annual Results Hong Kong    No                          9            27
            Roadshow

April       Annual Results Singapore    No                         11            17
            Roadshow

            Nomura China Conference     No                          9            23

            Company's First Quarterly   Yes                         -            75 
            Results Telephone 
            Conference

May         Bank of China International No                          7            13
            Investors Conference

            Deutsche Bank 2nd Access    No                         15            26
            Asia Conference

June        JP Morgan China Conference  No                         13            29

August      Company's Interim Results   Yes                         -            35
            Domestic Presentation

            Company's Interim Results   Yes                         -            54    
            Overseas Presentation

            Company's Interim Results   No                          8            16
            Hong Kong Roadshow

September   Company's Interim Results   No                          7            27
            Domestic Roadshow
 
October     Third Quarterly Results     Yes                         -            78
            Telephone Conference

            BNP China Economic Forum    No                          9            27

            Goldman Gao Hua Annual      No                          9            19
            Investment Conference

November    Bank of America Merrill     No                         13            38
            Lynch China Investment 
            Summit

December    Haitong Securities Annual   Yes                         -            15
            Strategic Conference
            


Investor Q&A

1. What is the Company's view  towards nationwide power supply and demand in 2012?

   The rate of economic and electricity growth  will decline, though "pursuing progress while 
   ensuring stability" - China's objective for 2012 - as well as effective macro-control 
   initiatives will ensure that the economy will maintain a steady and relatively rapid pace 
   of development. According to forecasts by the China Electricity Council, power consumption 
   across the society is expected to grow at a rate of approximately 9.5%, and annual power 
   consumption is estimated at 5.14 trillion kWh, possibly demonstrating "a rise in the rate 
   after a fall". On the supply side, newly-added installed capacity is expected to be 
   approximately 85,000MW, of which approximately 20,000MW is newly  added by hydropower, 
   and approximately 50,000MW is newly contributed by thermal power on a reduced scale. 
   Overall nationwide power-generating installed capacity will reach approximately 1,140,000 
   MW by the end of 2012.

   Judging from the current situation, it is likely that in 2012, water flow for hydropower 
   generation will dry up before the flood season arrives; the tension in the supply of thermal 
   coal in certain regions and during certain periods will remain a prominent issue; and the 
   external environment for supply will remain relatively challenging. Our overall analysis 
   suggests that overall national power supply and demand is anticipated to remain tense in 
   2012 as it will be characterized by a prominent shortage of power in certain regions and 
   during certain periods and seasons, with a maximum power shortfall of approximately 
   30,000MW  to 40,000MW. Annual utilization hours of power generation facilities will be 
   around 4,750 hours, while utilization hours of coal-fired power generation facilities will 
   be around 5,300-5,400 hours.

2. What is the Company's estimate for coal contracts to be signed up in 2012?

   According to the Company's power generation plan for 2012, it is estimated that the Company 
   will consume approximately 100 million  tonnes of natural coal in 2012. Up to now, the 
   Company has signed up contracts for 40.52 million tonnes of coal, and other contracts 
   currently are under negotiation. The prices of coal under the contracts which already been 
   signed up have risen by 5% against the 2011 level.

3. What progress did the Company make in its coal operations in 2011?

   In 2011, the Company made significant progress in the approval and construction of coal 
   mines as well as in coal production.

   As for project approval, the Phase 2 project of the Shengli Coal Mine  East Unit 2 in 
   Xilinhaote was approved by the State in 2011, providing an additional approved capacity of 
   20 million tonnes of raw coal.

   With respect to project construction, construction of the Phase 2 project of Shengli Coal 
   Mine East Unit 2 in Xilinhaote formally commenced in 2011.

   On the production side, the Shengli Coal Mine East Unit 2 and the Baoli Coal Mine, both of 
   which the Company has controlling interests, produced 10.71 million tonnes and 1.31 million 
   tonnes of raw coal, respectively, while Tashan Coal Mine and Yuzhou Coal Mine,  both of 
   which the Company owns holding interests, achieved an output of 23 million tonnes and 
   7.2 million tonnes of raw coal, respectively, in 2011.

   In 2011, the capacity 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.

4. What progress did the Company make in its coal-to-chemical projects in 2011 and what 
   are the Company's work targets for 2012?

   The Company has made significant progress in the three super-large coal-to-chemical 
   projects under construction in 2011. The progress made in 2011 and the work targets for 
   2012 are outlined below:

   Duolun Coal Polypropylene Project:

   In January 2011, gasification plants No. 2 and No. 3 and the MTP plant conducted successful 
   test runs, having overcome the problems in core and technical aspects of the plants.

   From February to July 2011, comprehensive technological improvement, inspection and repair 
   were carried out to solve the problems and defects exposed during the debugging process 
   of the plants.

   At the end of June 2011, up-to-standard methanol (with a purity of 99.9%) was produced, 
   having opened up the entire technological process by battery limit.

   In the beginning of September 2011, up-to- standard propylene was produced.

   At the end of September 2011, up-to-standard polypropylene was produced.

   From October to December 2011, a transformation project was carried at the MTP plant.

   On 16 March 2012, it underwent trial production. 

   The Company's objectives for 2012 are to achieve a loading rate of 70% for its equipment 
   within the year.

   Keqi Coal-based Natural Gas Project:

   On 26 August 2011, Gasifier No. 8 of Series 1 at the gasification plant was successfully 
   launched after first ignition.

   On 28 November 2011, the air separation plant produced up-to-standard oxygen and nitrogen
   following a successful trial run.

   On 31 December 2011, the laying of the gas pipeline was completed.

   The work objective for 2012 are to launch the first production line into commercial
   operation.

   Fuxin Coal-based Natural Gas Project:

   The lifting of the first gasifier was completed in 2011.

   The Company's objective for 2012 is to complete the ignition of the gasifier and the 
   trial run of the air separation plant.

5. What are the Company capital expenditure plans and structures for 2012?

   The capital expenditure on a consolidated basis to be incurred in 2012 is expected to 
   be approximately RMB22,550 million, of which the non-power business segment will account 
   for more than half of the total capital expenditure. Details of the structure are set out 
   in the table below.


   Table showing the percentages of capital expenditure of the Company by business
   sector for 2012

                                                  Proportion of the Capital 
                                                 Expenditure of the Company
   Investment sector                                                in 2012

   Company's total (on a consolidated basis)                           100%
   Coal-fired projects                                               20.78%
   Hydropower projects                                               20.94% 
   Wind power projects                                                6.94%
   Coal projects                                                     10.46%
   Coal-to-chemical projects                                         38.62%
   Other projects                                                     2.26%

6. 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 Development 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 projects; accelerate the 
   development of alumina projects; and secure a complementary development of railway, port
   and shipping operations.

   In the regions where the Company has resources and market advantages, the Company will
   optimize the deployment, carry out innovative development 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 period of the "Twelfth Five-year Development Plan", the Company 
   will focus on designing the following six profit bases with distinct assets 
   characteristics and synergistic efficiencies as well as strong development capacity 
   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 Profit Base with the "Three North Areas" as the centre.


Corporate Governance Report

The Company was incorporated 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 incorporated, 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 ("Articles of Association"). Shareholders' general meeting
is the 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 laws and protecting the interests of shareholders, 
having received high recognition from the capital market.

COMPLIANCE WITH CORPORATE GOVERNANCE PRINCIPLES

In 2011, the actual situation of corporate governance of the Company did not deviate 
substantially from the rules and requirements under the China Securities Regulatory 
Commission (the "CSRC") and relevant regulatory authorities. 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 2011, 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.

The Company places great importance in fulfilling its corporate responsibilities. The 
Directors and the staff of the Company are fully dedicated to discharging their duties 
in ways to ensure that the Company is operating in compliance with the principle of 
maintaining fairness and impartiality as well as safeguarding the interests of all 
shareholders.

CORPORATE GOVERNANCE ORGANIZATION AND ITS OPERATION

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 five 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 following matters were considered at the shareholders' general meetings of the Company
   in 2011:

   (1)  work reports of the Board and the Supervisory Committee of the Company; 

   (2)  final accounts;

   (3)  profit distribution plan for 2010 which approved cash dividends of RMB0.07/share to 
        the shareholders recorded on the register of members as of 31 May 2011;

   (4)  changes in supervisors as approved by representatives of the Company's shareholders 
        -- Mr. Zhou Xinnong shall serve as a supervisor from 6 December 2011 until 30 June 
        2013, as approved by representatives of the Company's shareholders, and Mr. Fu 
        Guoqiang would no longer serve as supervisor of the Company from 6 December 2011 due 
        to work adjustment;

   (5)  the provision of a guarantee for the financing of Duolun Coal Chemical Company, a 
        subsidiary of the Company, based on its actual needs for the construction of certain
        major projects;

   (6)  certain connected transactions approved by independent shareholders in relation to 
        the Company's provision of entrusted loans to connected parties;

   (7)  approval of the issue of RMB10,000 million super short-term commercial papers by the
        Company and the non-public offering of RMB10,000 million in debt financing 
        instruments to specific target investors.

   For details about the resolutions made at shareholders' general meetings in 2011, please 
   refer to the announcements on such resolutions made at previous shareholders' general 
   meetings published by the Company on the Hong Kong Stock Exchange's website.

   In 2011, the Company placed particular emphasis on shareholders' relations, specifically 
   to maintain communication with shareholders through various channels to facilitate mutual 
   understanding between the Company and its shareholders. In particular, the Company 
   established a division to assign designated staff to receive visitors, making its contact
   numbers available to the public, to answer telephone enquiries at any time. In addition, 
   the Company's website was set up to provide updates and past results on the Company, as 
   well as an organisational map of the Company's management, so as to facilitate a 
   comprehensive understanding of the Company by its shareholders and investors.

   For details about the Company's communication with shareholders and investors in 2011, 
   please refer to the "Management of Investor Relations" section of this Annual Report.

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. Pursuant to the Articles of Association, the Board currently comprises
   15 members, including five independent non-executive directors (i.e. Independent 
   Directors). The respective non-executive 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 conveners 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.

   Pursuant to the resolution made at the twenty-third meeting of the seventh session of the
   Board of the Company held on 23 March 2012, the duties of the aforementioned three 
   specialized committees were replenished and revised. The Strategy and Investment Committee
   was renamed as the "Strategic Development and Risk Control Committee" to further clarify
   the responsibilities of the committee in terms of risk management. Moreover, the Board set
   up the Nomination Committee to clarify the duties of the committee responsible for the
   appointment and dismissal of the Company's directors. The specialized committees under the
   Board carried out their work in accordance with their respective work rules.

   The Board formulated the "Rules of Proceedings for Board Meetings", which clarify the 
   matters to be decided by the Board as well as the terms of reference and the rules of 
   proceedings for the Board. During the reporting period, the Board held 18 meetings. The 
   convening and voting procedures of the meetings were in compliance with the requirements 
   under the Articles of Association and the "Rules of Proceedings for Board Meetings". 
   Major particulars of the resolutions made at the previous Board meetings include:

   (1)  consideration of matters related to the operating results of the Company, which 
        primarily includes the annual budget and final accounting plans as well as the annual 
        profit distribution plan of the Company;

   (2)  consideration of financing plans, which primarily includes the corporate bond 
        issuance plan, super short-term commercial paper issuance plan and non-public offering
        of debt financing instruments to specific target investors;

   (3)  consideration of investment plans, which primarily includes capital contributions to
        the development and construction of various power projects such as wind power, 
        photovoltaic power and gas thermal power projects, and equity investment in the 
        construction of non-power projects such as specialized coal terminal and railway 
        projects;

   (4)  consideration of equity adjustment plans for subsidiaries, which primarily includes
        the transfer of part of the equity interest in Daba Power Generation Co. to the 
        Company; the adjustment of the equity interest in Chaozhou Power Generation Co., 
        Ganzi Hydropower Co. and Beijing Datang Fuel Co.; and the acquisition of part of 
        the equity interest in Baxin Railway Co. and 100% equity interest in Erdos Ruidefeng
        Mining Co. Ltd.;

   (5)  consideration of the plans of the Company and its subsidiaries for the provision of
        guarantees to external parties;

   (6)  consideration of significant connected transaction plans, which primarily includes 
        continuing connected transactions such as those for the centralized purchase of 
        production materials, ash disposal services, entrusted loans and capacity indexes of
        small generating units; and connected transactions in relation to capital 
        contributions to the establishment of companies and adjustment of equity interests 
        in subsidiaries;

   (7)  consideration of the corporate governance report, which primarily includes the "Work
        Rules for the Secretary to the Board", "Self-assessment Report on the Company's 
        Internal Control" and "Specialized Policy for Preventing Substantial Shareholders and
        Connected Parties from Taking up the Funds of Listed Companies";

   (8)  consideration of plans for changes to certain directors, supervisors and senior 
        management members of the Company;

   (9)  consideration of the "2011  Social Responsibility Report" of the Company;

   (10) consideration of the plan for the engagement of the Company's accountant for 2011.

   In 2011, 18 Board meetings were held, of which 5 were on-site meetings and 13 were meetings
   held through various means of  communication. All  directors  attended  all  the  meetings
   either in person or by authorizing proxies to attend the meetings on their behalf. Details
   about the directors' attendance of the meetings are set out in the following table:

   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

3. Supervisors and the Supervisory Committee

   Pursuant to the Articles of Association, 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 
   five 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.

   During  2011,  attendances  of  the  Supervisory Committee are set out in the following
   table:

   Shareholder
   Representative Supervisor                 Attendance (%)
   Zhang Xiaoxu (Vice-chairman of the
      Supervisory Committee)                            100
   *Zhou Xinnong                                        100
   *Fu Guoqiang                                         100


   Employee
   Representative Supervisor                 Attendance (%)
   Qiao Xinyi (Chairman of the
      Supervisory Committee)                            100
   Guan Zhenquan                                        100

   *  Mr Zhou Xinnong was elected as a shareholder representative supervisor at the general
      meeting since 6 December 2011; Due to the work arrangement, Mr. Fu Guoqiang would no 
      longer assume the office of shareholder representative supervisor of the Company after
      the approval from the general meeting on 6 December 2011.

4. Non-executive Directors and Independent Non-executive Directors

   The Company has a total of 13 non-executive directors, of whom five are independent 
   non-executive directors. According to the Articles of Association, the term of service of
   each of the directors (including non-executive directors) shall not exceed three years,
   and the directors are eligible for re-election and reappointment upon the expiry of their
   terms of service. Any new director shall take office only after being elected and approved
   at a shareholders' general meeting. The consecutive term of service of each of the
   independent non-executive directors (i.e. Independent Directors) shall not exceed six
   years.

   Pursuant to the rules of the CSRC, 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 Independent Directors,
   the principles of the exercise of their functions and powers, the rights to which they are
   entitled and their 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 with 
   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 
   specialized committees; discharged their duties conscientiously; offered positive 
   recommendations on the business development and operational management of the Company 
   making 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 2011 Annual Report, the Independent Directors played an 
   active role in the Company as they listened to and inspected carefully details of the 
   Company's annual production and operations in strict compliance with the requirements of
   the securities regulatory authorities and the "Annual Report Work System for Independent
   Directors"; 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 duties.

5. Chairman and Chief Executive Officer (President)

   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.
   
   Pursuant to the Articles of Association, the general manager of the Company shall draft a
   special "Work Report of General Manager" on details of the implementation of the Board
   resolutions and the operation of the Company, and shall present the same to the Board for
   consideration; the Chairman (Chairman of the Board) shall draft a special "Work Report of
   the Board" on behalf of the Board regarding the details of the Board's work and present it
   to the Company's annual general meeting for consideration.



DUTIES AND OPERATION OF SPECIALIZED COMMITTEES UNDER THE BOARD

1. Strategic Development and Risk Control Committee (formerly known as Strategy and 
   Investment Committee)

(1)  Composition: Pursuant to the resolution made at the twenty-third meeting of the seventh
     session of the Board of the Company held on 23 March 2012, the Board has renamed the 
     Strategy and Investment Committee as the "Strategic Development and Risk Control 
     Committee" ("Committee"), which consists of eight directors (formerly seven directors.
     At the meeting, it was decided that Zhao Jie would be added as a member to the Committee
     as a Director), two of whom are Independent Directors. The Committee has a convener to 
     be selected and appointed by the Board. The convener is an Independent Director of the 
     Company who is in charge of the work of the Committee.

(2)  Rules of Proceedings: The Committee convenes a meeting at least once every year and 
     holds irregular meetings based on the needs of work. Committee meetings can be held as
     on-site meetings or through other means of communication (including teleconference, 
     facsimile or otherwise).

(3)  Major Duties:

(i)    To conduct research and make recommendations on the Company's long-term strategic 
      development plan;

(ii)   to conduct research and make recommendations on major investment and financing plans 
       which are subject to the Board's approval as according to the Articles of Association;

(iii)  to conduct research and make recommendations on major capital operations and asset 
       management projects which are subject to the Board's approval as according to the 
       Articles of Association;

(iv)   to conduct research and make recommendations on other significant matters that may have
       an impact on the development of the Company;

(v)    to conduct prior risk assessments and discussions on matters set out in (i) to (iv) 
       above, and recommend corresponding control and preventive measures;

(vi)   to conduct risk assessment and make recommendations on the sectors or industries in 
       which Company intends to operate;

(vii)  to inspect the execution of the above matters, and to conduct follow-up research on 
       the risk factors that may exist or occur during the execution process, and to make 
       recommendations accordingly;

(viii) the Committee is accountable to the Board. Any proposals made by the Committee shall 
       be submitted to the Board for consideration and decision.

(4)  Meetings: The former Strategy and Investment Committee held a meeting in March 2012 at 
     which the progress of the Company's corporate strategy for 2011 and the major investment
     plans that the Company intended to present to the Board for consideration were 
     considered. Five of the seven former members of the Committee attended the meeting, and 
     two members did not attend the meeting for business reasons. Details about each member's 
     attendance of the meetings are as follows:

     Committee Members                       Attendance (%)
     Li Yanmeng (Convener and                           100
         Independent Director)
     Zhao Zunlian (Independent Director)                100
     Fang Qinghai (Non-executive Director)              100
     Li Gengsheng (Non-executive Director)              100
     Cao Jingshan (Executive Director)                  100
     Zhou Gang (Executive Director)*                      0
     Ye Yonghui (Non-executive Director)                100
     Liu Haixia (Non-executive Director)*                 0

     * Zhou Gang and Liu Haixia, both Directors, did not attend the meeting due to business 
       engagement.

2. Remuneration and Appraisal Committee

   During the year, the Company implemented a basic salary policy based on the pay points of 
   positions for its executive directors and senior management members who were also covered 
   under the Company's "comprehensive account ability  management system" and "performance
   appraisal system for all staff". Upon preliminary review by the  Remuneration and Appraisal
   Committee and decision made by the Board, the annual remuneration of an independent
   non-executive director was RMB60,000 (after tax). The remuneration of other non-executive
   directors of the Company was paid under the salary policies of their respective work units
   at which they are working, and was paid by such work units.

(1)  Composition: The Board has established a Remuneration and Appraisal Committee that 
     comprises five directors, three of whom are Independent Directors, making up more than 
     half of the Committee. The committee has a convener selected and appointed by the Board.
     The convener is an Independent Director of the Company who is in charge of the work of 
     the Committee.

(2)  Rules of Proceedings: The committee shall convene at least one meeting each year and hold
     irregular meetings according to work requirements. Committee meetings may be convened by
     way of on-site meetings or through other means of communications (including 
     teleconference, facsimile, etc).

(3)  Major Duties:

(i)  To be accountable to the Board; proposals of the committee shall be submitted to the
     Board for consideration and approval;

(ii) to make remuneration plan or proposal according to the major scopes of work, duties and
     significance of the directors, supervisors and senior management positions as well as 
     the remuneration levels of comparable positions in other comparable companies; 
     remuneration plan or proposal include but not limited to performance appraisal 
     criteria, procedures and key  appraisal system, and major incentive and penalty plans
     and systems;

(iii)to review the fulfillment of the responsibilities of the Company's directors, 
     supervisors and senior management and to conduct annual performance appraisal thereon;

(iv) to supervise the implementation of the remuneration system of the Company's directors,
     supervisors and senior management;  

(v)  to execute other matters as authorised by the Board.

(4)  Meeting: The Remuneration and Appraisal Committee held a meeting in March 2011 to review
     the work performance and level of remuneration for the Company's executive directors and
     members of the senior management for 2010. The composition and level of remuneration were
     disclosed in this annual report (please refer to the Financial
     Report for details about the remuneration of directors, supervisors and senior management
     members). The attendance of the meeting by each of the members was as follows:

     Committee Members                            Attendance
     Convener (Chairman):
     Zhao Jie (Independent Non-executive                100% 
         Director)
     Members:
     Jiang Guohua (Independent Non-executive            100% 
         Director)
     Li Hengyuan (Independent Non-executive             100% 
         Director)
     Hu Shengmu (Non-executive Director)                100% 
     Zhou Gang (Executive Director)                     100%


3. Nomination Committee

   According to the Articles of Association, directors are elected and formed by the 
   shareholders' general meeting of the Company, with each term of the directors' service not
   exceeding three years, renewable upon re-election and re-appointment.

   Pursuant to the resolution made at the twenty-third meeting of the seventh session of the
   Board of the Company held on 23 March 2012, the Board decided to establish a Nomination
   Committee under the Board to clarify the duties of the committee for the appointment and
   removal of directors.

(1)  Composition: The Nomination Committee comprises five directors, which Independent 
     Directors make up more than half of the membership. The committee has a convener selected
     and appointed by the Board.The convener is an Independent Director of the Company who is
     in charge of the work of the Committee.

     The composition of the Nomination Committee is as follows:

     Convener (Chairman):      Zhao Jie (Independent Non-executive Director)
     Members:                  Li Hengyuan (Independent Non-executive Director) 
                               Jiang Guohua (Independent Non-executive Director)
                               Hu Shengmu (Non-executive Director) 
                               Zhou Gang (Executive Director)

(2)  Rules of Proceedings: The committee shall convene at least one meeting each year and hold
     irregular meetings based on work requirements. Committee  meetings may be convened by way
     of on-site meetings or through other means of communication (including teleconference, 
     facsimile, etc).

(3)  Major Duties:

(i)    To make recommendations to the Board with respect to the scale, constitution and 
       composition (including skills, knowledge and experience) of the Board based on the of 
       operating activities, asset scale and shareholding structure of the Company;

(ii)   to examine the selection criteria and procedures of directors and managers and to make
       recommendations to the Board;

(iii)  to identify broadly candidates suitably qualified to become directors and managers;

(iv)   to investigate the candidates of directors and managers and other senior management 
       staff, and to make recommendations;

(v)    to assess the independence of Independent Directors.

(vi)   to execute other matters as authorised by the Board.

   In 2011, the Nomination Committee was not yet established. The duty of appointment and 
   dismissal of Directors was borne by the Board. The Board reviews the qualifications of the 
   directors proposed to be appointed or dismissed and submits proposal to the shareholders' 
   general meetings for shareholders' approval. In 2011, there was no appointment or dismissal
   of Director.

4. Audit Committee

(1)  Composition: The Board has established an Audit Committee that currently comprises five
     directors, three of whom are Independent Directors, making up more than half of the 
     membership. The committee has a convener selected and appointed by the  Board. The 
     convener is an independent director of the Company who is in charge of the committee's
     work.

(2)  Rules of Proceedings: The committee shall convene at least one meeting each year and hold
     irregular meetings according to work requirements. Committee meetings may be convened by
     way of on-site meetings or through other means of communication (including 
     teleconference, facsimile, etc).

(3)  Major Duties:

(i)    to be accountable to the Board; the proposals of the committee shall be submitted to
       the Board for consideration and approval;

(ii)   to make recommendations  on the appointment and replacement of external audit firms;

(iii)  to supervise the Company's internal audit system and its implementation;

(iv)   to be responsible for the communication between internal and external auditors;

(v)    to review the Company's financial information and its disclosures;

(vi)   to complement  with  the supervisory committee and the supervisors in reviewing the
       Company's financial matters;

(vii)  to review the establishment of the comprehensive internal control system;

(viii) to review the "Internal Control Evaluation Report" and the "Internal Control Assessment
       Report";

(ix)   to inspect the completeness of the establishment of the comprehensive internal control
       system;

(x)    to coordinate the audit of the internal controls and other related matters.


(4)  Meetings: In 2011, the Audit Committee performed its work mainly through convening of 
     meetings. The Audit Committee held two meetings in 2011. The Company's Directors, 
     supervisors, chief financial officer and other members of the senior management as well 
     as the external auditors of the Company were invited to attend the Audit Committee 
     meetings. 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 2011 Annual Report. 
     The Company communicated in writing with Independent Directors and members of the Audit
     Committee during the annual review of the 2011 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 2011 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 domestic and international 
     auditors of the Company for 2012, subject to approval at the 2011 annual general meeting.

     The attendance of the meeting by each of the Audit Committee members was as follows:

     Convener (Chairman):                        Attendance
     Jiang Guohua (Independent Non-executive           100% 
         Director, financial management expert)
     Members:
     Li Yanmeng (Independent Non-executive             100% 
         Director)
     Li Hengyuan (Independent Non-executive            100% 
         Director)
     Ye Yonghui (Non-executive Director)               100% 
     Guan Tiangang (Non-executive Director)*            50%

     * Guan Tiangang did not attend the Audit Committee meeting on March 2011 due to business
       engagement.


ESTABLISHMENT OF THE COMPANY'S 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 the Company'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. Since its incorporation, 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 "Basic Standards for Internal Control", the 
"Rules Governing the Listing of Stocks on Shanghai Stock Exchange", 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.

The Board has conducted a review of the effectiveness of the internal control system of the 
Company and its subsidiaries and consider that its internal control system is effective.

1. Established a specialized internal control setup office. In 2011, the Company established a
   specialized office responsible for setting up, improving and implementing an internal 
   control system, as well as compiling an internal control management manual in accordance 
   with the requirements of the "Basic Standards for Corporate Internal Control" and related 
   guidelines, and also in accordance with the five major components of internal control as a 
   framework, which contains various particulars such as the definitions of internal control, 
   internal control framework, principle of compilation, scope of applicability, division of 
   responsibility, updates and maintenance mechanism. Moreover, a risk control manual 
   containing a risk control matrix, flow chart and description of processes was compiled on 
   the basis of the outcome of the smoothening of business processes to identify the critical 
   control points with particular emphasis on risks in combination with the external legal 
   requirements and management needs, and to follow communications with all business 
   departments and various modifications.

2. Build-up of internal control system. 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 administration management 
   system, an information management system and a production  management system.  In 2011, 
   according to its work schedule, the Company smoothened its existing internal control system
   by making necessary changes with the aim to establish a sound internal control system so 
   that the internal control system covers all levels and all aspects of the operation and 
   management activities.

3. Internal control supervision and inspection. The internal control setup office established
   by the company is responsible for organizing and conducting internal control assessment to
   assess high-risk areas and work units which fall within the scope of assessment. In 2011, 
   the Company engaged Deloitte & Touche to assist in the compilation of an internal control 
   assessment manual and the formulation of an internal control self-assessment proposal and 
   plan, as well as to assist the internal control assessment department to undertake a 
   comprehensive assessment of the effectiveness of the internal control of the Company's 
   headquarters. The Company has set up a specialized internal audit office -- the Supervisory
   and Audit Department -- staffed by four full-time internal auditing officers specifically
   responsible for the monitoring and inspection of production and business activities as well
   as the enforcement of internal control to ensure the implementation of the internal control
   system and the normal conduct of production and business activities.

4. Internal control self-assessment. In 2011, the Company set up an independent internal
   control assessment working group responsible for carrying out the Company's internal 
   control self-assessment. The enterprises under the Company deployed the key business staff
   of their relevant departments to form an internal control self-assessment team to conduct
   internal control assessments for themselves. Deloitte Touche Tohmatsu CPA supervised in the.
   internal control self-assessment of the Company.

   In 2011, the scope of the Company's internal control assessment covered seven branches and
   44 directly invested subsidiaries (including enterprises directly under such subsidiaries)
   included in the consolidated statements. The enterprises which fell into the scope of
   assessment were those engaged in the power generation (coal-fired power, hydropower and 
   wind power), coal chemical, coal, transportation (shipping), metallurgy and other sectors.

   During the establishment of the internal control system, 46 first-level processes were
   smoothened, including the corporate governance structure, organizational structure, 
   strategic management, major decisions and human resources, and an assessment of 841 control
   measures identified in 262 final-level processes was conducted, covering the major aspects
   of the Company's business management.

   Various methods were employed during the internal control assessment process, including 
   individual interviews, survey questionnaires, seminars, walkthrough tests, site inspections,
   sampling and comparative analysis to collect evidence so as to determine whether or not 
   the design and operation of internal control were effective. This was completed in the 
   working  papers on assessment tests for analyzing and identifying any internal control 
   defects. During the internal control assessment process, the quality of the assessment test
   was assured by cross-checking the working papers on the assessment test and supplementary 
   verification of the assessment test results.

   After a detailed and thorough internal control assessment, the Board of the Company 
   believes that in 2011, the internal control system pertaining to the Company's operations
   and financial accounting was in compliance 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 crucial 
   processes 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 crucial 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 2011.

   The Company has engaged RSM China Certified Public Accountants (Special General 
   Partnership) ("RSM China") to present the "Audit Report on the Self-assessment Report of 
   the Board of Directors of Datang International Power Generation Co., Ltd. on the Internal 
   Control of the Company (2011)" (the "Audit Report") 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 (2011)" (the "Self-assessment Report"). The Audit Report 
   says that based on the work of RSM China in 2011, RSM China did not discover any 
   discrepancies in all material respects between the details of the assessment of the 
   internal control pertaining to the preparation of financial statements in the 
   Self-assessment Report prepared by the Board and in the audit findings by RSM China on the 
   Company's financial statements.

   Please refer to the relevant announcements of the Company dated 26 March 2012 on the 
   websites of the Shanghai Stock Exchange and the Hong Kong Stock Exchange regarding the 
   "Self-assessment Report" and the "Audit Report".

5. Work arrangements for internal control build-up

   The Board has considered and approved the "Implementation Scheme on Internal Control 
   Standards" devised by the Company. The Company will further accelerate the standardization
   of corporate finance and related business and management activities in line with 
   continuously accumulated management experience, shareholders' recommendations, trends in 
   the development of internal control at home and abroad as well as changes in internal and
   external risks with reference to the regulatory rules and requirements and in accordance 
   with a set implementation scheme. The Company will continue to build up the internal 
   control system by transforming text-based internal control management into online-based 
   internal control management. The Company plans to further deepen and optimize the internal
   control system in 2012 in the following areas:

(1)  continuing to keep abreast of China's relevant requirements on internal control and risk
     management for improving the internal control system of the Company in a timely manner 
     to guard against operational risks.

(2)  optimizing the internal control management platform and further carrying out the 
     down-to-earth operation of the internal control system. The Company will optimize the 
     internal control management platform to make its interface more friendly and convenient 
     to use. Moreover, the Company will continue to carry out the down-to-earth operation of
     its internal control system by selecting key business processes for applying information
     technology and by strengthening the connection of the internal control management 
     platform with the business system so that the internal control management platform can 
     play a role as the "central nervous system" of the Company's management system.

(3)  deepening and improving the comprehensive internal control systems of specialized 
     (regional) companies and grass-roots enterprises. The Company will deepen and improve the
     implementation of its internal control systems of enterprises under the Company and urge
     the coal-fired power, hydropower, wind power, coal chemical and coal enterprises to 
     further improve their risk control manuals.


COMPANY'S AUDITORS

In 2011, the Company engaged RSM China Certified Public Accountants (Special General 
Partnership) and RSM Nelson Wheeler to be its domestic and international auditors 
respectively, making them responsible for providing impartial and objective advice on the 
Company's financial statements. The Company's Audit Committee has confirmed the independence 
and objectivity of the auditors. In 2011, the fee payable to RSM China Certified Public 
Accountants (Special General Partnership) and RSM Nelson Wheeler for the provision of audit 
service amounted to RMB13.78 million. The sum of HK$10,000 was paid by the Company as 
non-audit service fee, which was professional services fee in relation to taxation filing for 
a subsidiary of the Company.


Report of the Directors

The Directors are pleased to present the audited results of the Company for the year ended 31 
December 2011.



COMPANY RESULTS


During the Year, consolidated operating revenue of the Group was approximately RMB72,382 
million, representing an increase of approximately 19.30% as compared to the Previous Year. 
Net profit attributable to shareholders of the Company was approximately RMB1,971 million, 
representing a decrease of approximately 23.29% as compared to the Previous Year. Basic 
earnings per share attributable to shareholders of the Company amounted to approximately 
RMB0.15, representing a decrease of  approximately RMB0.06 per share as compared to the 
Previous Year. Please refer to the "Management Discussion and Analysis" section for details 
of the Company's results.

In view of the operating results of the Group during the Year, the Board has recommended the 
distribution of a final dividend of RMB0.11 per share (tax included) for the Year, and such 
profit distribution plan is subject to the approval by the shareholders at the annual general 
meeting.


ISSUE 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 bonds of US$153.8 million, which have been listed on the Luxembourg Stock 
Exchange, at 0.75%  interest rate 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. Further, the Company had non-public offering of A shares in May 2011, with 
newly-issued A shares of 1,000,000,000 shares. Due to above-mentioned changes, as at 31 
December 2011, the total number of shares of the Company was 13,310,037,578 shares. Apart 
from that, the Company did not issue any new shares.

Performance  of the Company's H shares during 2011:


Closing price of H shares as at
31 December 2011                                         HK$2.57 per share

Highest trading price of H shares between
1 January and 31 December 2011                           HK$3.12 per share

Lowest trading price of H shares between
1 January and 31 December 2011                           HK$1.80 per share

Total number of H shares traded between
1 January and 31 December 2011                          3.652 billion shares


Performance  of the Company's A shares during 2011:


Closing price of A shares as at
31 December 2011                                         RMB5.16 per share

Highest trading price of A shares between
1 January and 31 December 2011                           RMB7.63 per share

Lowest trading price of A shares between
1 January and 31 December 2011                           RMB4.34 per share

Total number of A shares traded between
1 January and 31 December 2011                          2.502 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, i.e. 
27 April 2012 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 2011 are set
out in the Consolidated  Statement of Comprehensive  Income. The financial position
of the Company and its subsidiaries as at 31 December 2011 is set out in the Consolidated 
Statement of Financial Position.

The Company and its subsidiaries' consolidated cash flows for the year ended 31 December 2011 
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 and 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:

                             2011     2010
Purchases
   The largest supplier    16.68%      16% 
   Top five suppliers      27.23%      37%

Sales
   The largest customer    27.16%   29.58%
   Top five customers      60.90%   59.84%


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, JOINTLY CONTROLLED ENTITIES AND ASSOCIATES


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


DIVIDEND, EARNINGS PER SHARE


The Board recommended the distribution of a proposed final dividend of RMB0.11 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 dividend payment shall be based on the average of the closing rates of the Hong 
Kong dollar/RMB exchange rates announced 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 Note 30 to the Financial Statements,
among which distributable reserves attributable to the shareholders 
amounted to approximately RMB11.734 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 charitable and relief donations 
of approximately RMB1.537 million.


SHARE CAPITAL


As at 31 December 2011, total share capital of the Company amounted to 13,310,037,578 shares, 
divided into 13,310,037,578 shares of a nominal value of RMB1.00 each. Movements in share 
capital during the Year are set out in Note 28 to the Financial Statements.

SHARE CAPITAL STRUCTURE


As at 31 December 2011, total number of shares issued by the Company was 13,310,037,578. The 
Company's shareholders were China Datang Corporation ("CDC"), Tianjin Jinneng Investment 
Company, Hebei Construction & Investment Group Co., Ltd., Beijing Energy Investment (Group) 
Company, and other shareholders of A shares and H shares, holding 4,138,977,414 A shares, 
1,296,012,600 A shares, 1,281,872,927 A shares, 1,260,988,672 A shares, 2,016,508,387 A shares
and 3,315,677,578 H shares, respectively, representing 31.10%, 9.74%, 9.63%, 9.47%, 15.15% and
24.91%, respectively, of the total issued share capital of the Company.

Among the H shares, CDC's controlling subsidiary, China Datang Overseas (Hong Kong) Co., 
Limited, held 480,680,000 H shares, and therefore CDC and China Datang Overseas (Hong Kong) 
Co., Limited held a total of 4,619,657,414 shares in the Company, representing 34.71% 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 2011 were as follows:
_______________________________________
Total number of shareholders    218,785
_______________________________________
Holders of domestic shares      218,077
_______________________________________
Holders of H shares             708
_______________________________________


SUBSTANTIAL SHAREHOLDERS OF THE COMPANY


So far as the Directors of the Company are aware, as at 31 December 2011, the interests or 
short positions of the persons in the shares or underlying shares of the Company as required 
to be disclosed under section 336 of the Securities and Futures Ordinance (the "SFO")  
(Chapter 571 of the Law of Hong Kong), were as follows:

_________________________________________________________________________________________

                                                  Approximate   Approximate   Approximate
                                                   percentage    percentage    percentage
                                                     of Total      of Total      of Total
                                                Issued Shared      Issued A      Issued H
                         Class of       No. of Capital of the Shares of the Shares of the
Name of Shareholder        Shares  Shares Held        Company       Company       Company
                                                          (%)           (%)           (%)
_________________________________________________________________________________________
CDC                      A shares 4,138,977,414         31.10         41.41            -
                         H shares   480,680,000 (L)      3.61 (L)         -     14.50 (L)
_________________________________________________________________________________________
Tianjin Jinneng 
  Investment Company     A shares 1,296,012,600          9.74         12.97            -
_________________________________________________________________________________________
Hebei Construction
  & Investment Group 
  Co., Ltd.              A shares 1,281,872,927          9.63         12.83            -
_________________________________________________________________________________________
Beijing Energy 
  Investment (Group)
  Company Limited        A shares 1,260,988,672          9.47         12.62            -

(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. Liu Haixia and Ms. Guan Tiangang, both non-executive Directors, are employees of 
     Beijing Energy Investment (Group) Company Limited.

(3)  Mr. Su Tiegang and Mr. Ye Yonghui, both non-executive Directors, are employees of Hebei 
     Construction & Investment Group Co., Ltd.

(4)  Mr. Li Gengsheng, a non-executive Director, is an employee of Tianjin Jinneng Investment
     Company.



INTERESTS OF DIRECTORS AND SUPERVISORS IN SHARE CAPITAL


As at 31 December 2011, Director Mr. Fang Qinghai held 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 were 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' AND SUPERVISORS' SERVICE CONTRACTS


As at 31 December 2011, the Company has not entered into any service contracts with its 
Directors and supervisors. Therefore, none of the Directors and supervisors have or proposed 
to have any service contracts with the Company which is not determinable by the Company 
within one year without payment of compensation (other than statutory compensation).


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 any time 
of the Year.


DIRECTORS AND SUPERVISORS' BENEFITS FROM ACQUISITION  OF 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 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, the Group implemented a basic salary policy based on the post salary points 
for the Company's Directors, supervisors and members of senior management, and appraisals were
carried out in accordance with the "comprehensive  accountability management system and the 
performance appraisal system for all staff". The Remuneration and Appraisal Committee reviewed
the work performance and remuneration level of each individual.

All of the highest paid individuals of the Company during the Year included Directors, 
supervisors and members of senior management. 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, other long-term loans and short-term bonds set 
out in Note 38 to the Financial Statements, Note 31 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 2011.


MEDIUM-TERM NOTES AND CORPORATE BONDS



(1)  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%.

(2)  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.

(3)  In April 2011, the Company issued corporate bonds of RMB3 billion, carrying a fixed 
     coupon interest rate of 5.25% 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.

___________________________________________________________________________

Connected Parties              Major Details of Transactions    Transaction
                                                                     Amount
                                                                  (RMB'000)
___________________________________________________________________________
CDC                                      Coal ash processing         57,890
___________________________________________________________________________
China National Water Resources &
  Electric Power Materials  &       Procurement of equipment
  Equipment Corporation                  and materials, etc.         83,576
___________________________________________________________________________
China Datang Group Finance
  Company Limited                          Interest expenses        234,492
___________________________________________________________________________
China Datang Group Finance
  Company Limited                            Interest income         44,296
___________________________________________________________________________

Note 1:  Pursuant to the "Financial Services Agreement" entered into by the Company and China
         Datang Group Finance Company Limited ("Datang Finance Company"), a controlled company
         of China Datang Corporation ("CDC"), the balance of deposit of the Company and its 
         subsidiaries in Datang Finance Company was RMB1,719 million as at 31 December 2011, 
         which did not exceed the cap on the average daily deposit balance of RMB8,000 million
         as set out in the agreement.


Continuing Connected Transactions in 2011


(1)  On 26 October 2010, the Company and Datang Finance Company entered into the "Financial 
     Services Agreement" which was effective from 1 January 2011 to 31 December 2013. Within 
     the effective term of the agreement, Datang Finance Company provided deposit services, 
     loan services and other relevant financial services to the Company and its subsidiaries; 
     while the daily maximum balance for the deposit of the Group in Datang Finance Company 
     shall not exceed RMB8,000 million. Within the effective term of the agreement, the 
     transaction amount did not exceed the cap as set out in the agreement. For details of 
     the transaction, please refer to the announcement of the Company dated 26 October 2010.

(2)  On 22 March 2011, the Company entered into the "Supplemental Agreement to the Ash 
     Disposal Agreement" with CDC, the controlling shareholder of the Company, which was 
     effective from 22 March 2011 to 31 December 2013. Within the effective term of the 
     agreement, CDC agreed to provide disposal services for ash generated by the power plants 
     which are wholly-owned, operated and managed by the Company. The annual cap on the fees 
     for ash disposal services payable to CDC by the Company for each year shall be 
     RMB57,890,000. Within the effective term of the agreement, the transaction amount did not
     exceed the cap as set out in the agreement. For details, please refer to the announcement
     of the Company dated 22 March 2011.

(3)  On 22 March 2011, the  Company and China National Water Resources & Electric Power 
     Materials & Equipment Corporation ("China Water Resources and Power"),  a subsidiary of 
     the Company's controlling shareholder, CDC, entered into the "Framework Agreement for 
     Centralised  Purchase of Materials" which was effective from 1 January 2011 to 31 
     December 2013. Within the effective term of the agreement, China Water Resources and 
     Power was commissioned to plan and organize group purchases based on the demands for 
     production materials of the Company and its subsidiaries. The annual cap on the purchase 
     amount shall be approximately RMB200 million. Within  the effective term of the 
     agreement, the transaction amount did not exceed the cap as set out in the agreement. 
     For details of the transaction, please refer to the announcement of the Company dated 
     22 March 2011.


Other Connected Transactions in 2011


(4)  On 28 April 2011, the Company entered into the Framework Agreement on the Transfer of 
     Shut-down Capacity Indices in Hunan ("Framework Agreement")  with the Company's 
     controlling shareholder CDC's Hunan Branch ("Hunan Branch"), pursuant to which Hunan 
     Branch (and the enterprises managed by it) agreed to transfer to the Company the total 
     capacity indices of 600 MW of the shut-down small generating units to accelerate the 
     development, construction and approval of large-scale coal-fired power projects of the
     Company, and the Company had to pay Hunan Branch a compensation fee of RMB600 million 
     for the small-capacity units. For details of the transaction, please refer to the 
     announcement of the Company dated 28 April 2011.

(5)  On 28 April 2011, the Company entered into the Compensation Agreement on the Acquisition 
     by Lvsigang of shut-down capacity indices with Datang International Lvsigang Power 
     Generation Company Limited ("Lvsigang Power Generation Company"). In order to facilitate 
     project construction, Lvsigang Power Generation Company acquired the generating unit with
     125 MW shut-down capacity at Douhe Power Plant from the Company in accordance with the 
     State's replacing "small units with large units" policy. Lvsigang Power Generation 
     Company had to pay the Company a compensation fee for the small-capacity unit in an 
     aggregate sum of RMB100 million. The compensation fee is mainly for arrangement of the 
     personnel of the shut-down units.

     As CDC is the controlling shareholder of the Company, and CDC also holds 35% of the 
     equity interests of Lvsigang Power Generation Company, therefore CDC and Lvsigang Power 
     Generation Company are connected persons of the Company, and the agreement(s) constitutes
     connected transaction of the Company. For details of the transaction, please refer to the
     announcement of the Company dated 28 April 2011.

(6)  On 14 August 2009, Inner Mongolia Datang International Zhuozi Windpower Company Limited 
     ("Zhuozi Windpower Company"), a wholly-owned 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"), a subsidiary of the Company's controlling Shareholder, 
     CDC. Datang Technologies would provide general contracting services for Phase IV project 
     of the Zhuozi Windpower Company. The contract amount was approximately RMB382 million. 
     In 2011, both parties to the agreement continued to execute the agreement. The 
     transaction amount was approximately RMB35.5 million. For details of the transaction, 
     please refer to the announcement of the Company dated 17 August 2009.

(7)  On 24 October 2011, the Company entered into the "Entrusted Loan Framework Agreement" 
     ("Framework Agreement") with Datang Energy and Chemical Company Limited ("Energy and 
     Chemical Company"), a wholly-owned subsidiary of the Company, Datang Inner Mongolia 
     Duolun Coal Chemical Company Limited ("Duolun Coal Chemical Company"), in which Energy 
     and Chemical Company and CDC hold 60% and 40% equity interests respectively, and Diao Yu 
     Tai Branch of China Construction Bank ("CCB Diao Yu Tai Branch"). The term for the 
     Framework Agreement commenced from 12 October 2011 to 11 October 2014, pursuant to which 
     the Company, or Energy and Chemical Company, provided an entrusted loan in several 
     tranches to Duolun Coal Chemical Company through the Entrusted Loan Framework Agreement 
     arrangement in which CCB Diao Yu Tai Branch acted as a lending agent. The principal of 
     the entrusted loan totalled approximately RMB2 billion. In 2011, the entrusted loan 
     granted under the Framework Agreement amounted to RMB500 million. For details of the 
     transaction, please refer to the announcement of the Company dated 24 October 2011.

(8)  On 28 January 2011, the Company provided a counter guarantee in favour of China Datang 
     Overseas (Hong Kong) Co., Limited ("Datang Overseas"), a wholly-owned subsidiary of the 
     Company's controlling shareholder, CDC. In consideration of the pledge agreed by Datang 
     Overseas of H shares of the Company to the Bank of China (Hong Kong) Limited for the 
     provision of a guarantee for a loan facility not exceeding HK$690 million by the bank to 
     Datang International (Hong Kong) Ltd. ("Datang Hong Kong"), a wholly-owned subsidiary of 
     the Company, and the Company agreed and confirmed that it voluntarily provided the 
     counter guarantee in favour of Datang Overseas in the capacity of counter guarantor. The 
     counter guarantee was provided in favour of Datang Overseas against all amounts incurred 
     by Datang Hong Kong under the Deed of Guarantee. The term of the counter guarantee 
     commenced from the effective date of the Deed of Guarantee to the expiry date of the 
     Deed of Guarantee and the two-year period thereafter. The counter guarantee was provided 
     on a joint liability basis. For details of the transaction, please refer to the 
     announcement of the Company dated 28 January 2011.

(9)  On 17 May 2011, the Company entered into the Entrusted Loan Agreement with the Xuanwu 
     Branch of Industrial and Commercial Bank of China Limited and Duolun Coal Chemical 
     Company, in which the Company indirectly holds 60% equity interests and the Company's 
     controlling Shareholder, CDC, holds 40% equity interests, in relation to the provision 
     of a RMB600 million entrusted loan by the Company according to the Entrusted Loan 
     Agreement to Duolun Coal Chemical Company through the Entrusted Loan Arrangement, in 
     which the Xuanwu Branch of Industrial and Commercial Bank of China Limited acted as a 
     lending agent. The lending rate is in line with the benchmark interest rate to be 
     charged by the People's Bank of China for the same period, and to be adjusted every 
     twelve months commencing from the actual drawdown date. The term for the entrusted loan 
     is 36 months. For details of the transaction, please refer to the announcement of the 
     Company dated 17 May 2011.

(10) On 6 May 2011, the Board of Directors of the Company considered and approved that the 
     Company, CDC, the controlling shareholder of the Company, Datang Huayin Electric Power., 
     Ltd., a controlling subsidiary of CDC, and Guangxi Guiguan Electric Power Co., Ltd., a 
     controlling subsidiary of CDC, would participate in the increase in capital contribution
     to Datang Finance Company by further contributing RMB280 million to Datang Finance 
     Company according to the Company's percentage of shareholding in Datang Finance Company. 
     Upon the completion of the increase in capital contribution, the Company's aggregate 
     contribution to Datang Finance Company amounted to RMB600 million and the equity 
     interests held by the Company in Datang Finance Company remained at 20%. The increase 
     in capital contribution was completed on 24 May 2011. For details of the transaction, 
     please refer to the announcement of the Company dated 6 May 2011.

(11) On 26 August 2011, the Company entered into the Entrusted Loan Agreement with CCB Diao 
     Yu Tai Branch and Lvsigang Power Generation Company in relation to the provision of the 
     first tranche of an entrusted loan amounting to RMB400 million commencing from 31 August
     2011 to 30 August 2012 (the Board considered and approved to provide Lvsigang Power 
     Generation Company with an entrusted loan of not more than RMB600 million) by the 
     Company to Lvsigang Power Generation Company through the Entrusted Loan Arrangement, in 
     which the CCB Diao Yu Tai Branch acted as a lending agent. The lending rate is the 
     benchmark interest rate to be charged for the same level of loans in RMB by the People's 
     Bank of China for the same period as announced by the People's Bank of China on the date 
     when each batch of borrowing is withdrawn. For details of the transaction, please refer 
     to the announcement of the Company dated 2 September 2011.

(12) On 24 August 2011, the Company entered into the Entrusted Loan Agreement with CCB Diao 
     Yu Tai Branch and Duolun Coal Chemical Company, in which the Company indirectly holds 
     60% equity interests and CDC holds 40% equity interests, in relation to the provision of
     the first tranche of an entrusted loan amounting to RMB400 million commencing from 24 
     August 2011 to 23 August 2014 (the Board considered and approved to provide Duolun Coal 
     Chemical Company with  an entrusted loan of not more than RMB700 million) by the Company 
     to Duolun Coal Chemical Company through the Entrusted Loan Arrangement, in which CCB 
     Diao Yu Tai Branch acted as a lending agent. For details of the transaction, please refer
     to the announcement of the Company dated 24 August 2011.

(13) On 21 September 2011, the Company entered into the Capital Contribution Agreement for 
     Guangdong Datang International Chaozhou Power Generation Company Limited ("Chaozhou Power
     Company") ("Capital Contribution Agreement") with CDC, Beijing China Power Huaze 
     Investment Company Limited ("China Power Huaze"), Wenshan Guoneng Investment Company 
     Limited ("Wenshan Guoneng") and Chaozhou Xinghua Energy Investment Company Limited 
     ("Chaozhou Xinghua"). Pursuant to the Capital Contribution Agreement, CDC agreed to make 
     a capital contribution in the sum of approximately RMB874 million to Chaozhou Power 
     Company, a controlled subsidiary of the Company, to secure 22.5% of the shares in 
     Chaozhou Power Company, whereas China Power Huaze, Wenshan Guoneng and Chaozhou Xinghua 
     agreed to make corresponding capital contributions to Chaozhou Power Company in 
     proportion to their respective original shareholding in Chaozhou Power Company. The 
     Company did not participate in this capital contribution. Upon the completion of the 
     increase in capital contribution, the shareholders and the shareholding structure of 
     Chaozhou Power Company were adjusted as follows: the Company holds 52.5% (originally 
     75%), CDC holds 22.5%, China Power Huaze holds 12%, Wenshan Guoneng holds 8% and 
     Chaozhou Xinghua holds 5%. Chaozhou Power Company remains a controlled subsidiary of 
     the Company. As CDC is a controlling shareholder of the Company, Chaozhou Power Company 
     is a subsidiary of the Company, CDC holds 22.5% equity interests in Chaozhou Power 
     Company and China Power Huaze holds 12% equity interests in Chaozhou Power Company, 
     therefore CDC and China Power Huaze are connected persons of the Company, and the 
     Capital Contribution Agreement constitutes a connected transaction of the Company. For 
     details of the transaction, please refer to the announcement of the Company dated 21 
     September 2011.

(14) On 29 September 2011, the Company entered into the Capital Contribution Agreement 
     ("Capital Contribution Agreement") with CDC, Ganzi County Gantou Hydropower Development 
     Company Limited ("Gantou Hydropower") and Sichuan Datang International Ganzi Hydropower 
     Development Co., Ltd. ("Ganzi Hydropower Company"). Pursuant to the Capital Contribution 
     Agreement, CDC agreed to make a capital contribution in the sum of approximately 
     RMB220.1 million to Ganzi Hydropower Company; Gantou Hydropower agreed to increase its 
     capital contribution in the sum of approximately RMB148.7 million to Ganzi Hydropower 
     Company in proportion to its original shareholding in Ganzi Hydropower Company; the 
     Company did not participate in this capital contribution. Upon the completion of the 
     increase in capital contribution, the Company remains the controlling shareholder of 
     Ganzi Hydropower Company, and the shareholders and shareholding structure of Ganzi 
     Hydropower Company were adjusted as follows: the Company holds 52.5% (originally 80%), 
     CDC holds 27.5% and Gantou Hydropower holds 20%. Ganzi Hydropower Company remains a 
     controlled subsidiary of the Company. As CDC is a controlling shareholder of the 
     Company, Ganzi Hydropower Company is a subsidiary of the Company and CDC holds 27.5% 
     equity interests in Ganzi Hydropower Company, therefore CDC and Ganzi Hydropower Company 
     are connected persons of the Company, and the Capital Contribution Agreement constitutes 
     a connected transaction of the Company. For details of the transaction, please refer to 
     the announcement of the Company dated 29 September 2011.

(15) On 15 September 2011, the Company entered into the Entrusted Loan Agreement with CCB Diao
     Yu Tai Branch and Ganzi Hydropower Company in relation to the provision of the first 
     tranche of an entrusted loan amounting to RMB500 million (the Board considered and 
     approved to provide Ganzi Hydropower Company with an entrusted loan of not more than 
     RMB1,000 million) by the Company to Ganzi Hydropower Company through the Entrusted Loan 
     Arrangement commencing from 15 September 2011 to 14 September 2016, in which CCB Diao Yu 
     Tai Branch acted as a lending agent. The lending rate is the benchmark interest rate to 
     be charged for the same level of loans in RMB by the People's Bank of China for the same 
     period as announced by the People's Bank of China on the date when each batch of 
     borrowing is withdrawn. For details of the transaction, please refer to the announcement 
     of the Company dated 15 September 2011.

     As CDC is a controlling shareholder of the Company, Ganzi Hydropower Company is a 
     subsidiary of the Company and CDC holds 27.5% equity interests in Ganzi Hydropower 
     Company, therefore CDC is a connected person of the Company, and the Capital Contribution
     Agreement constitutes a connected transaction of the Company.

(16) On 12 October 2011, the Company and Beijing Datang Fuel Company Limited ("Datang Fuel 
     Company"), a wholly-owned subsidiary of the Company, entered into the Capital 
     Contribution Agreement for Datang Fuel Company ("Capital Contribution Agreement") with 
     Datang Power Fuel Company Limited ("Group Fuel Company"), a wholly-owned subsidiary of 
     CDC, the controlling shareholder of the Company. Pursuant to the Capital Contribution 
     Agreement, Group Fuel Company agreed to make a capital contribution in the sum of 
     approximately RMB557 million to Datang Fuel Company to secure a 49% equity interest in 
     Datang Fuel Company. The Company did not participate in this capital contribution. Upon 
     the completion of the increase in capital contribution, Datang Fuel Company remains a 
     controlled subsidiary of the Company and the shareholders and the shareholding structure 
     of Datang Fuel Company was adjusted as follows: the Company holds 51% (originally 100%) 
     and Group Fuel Company holds 49% equity interest in Datang Fuel Company. For details of 
     the transaction, please refer to the announcement of the Company dated 12 October 2011.

(17) On 17 October 2011, the Company entered into the Capital Contribution Agreement with 
     China Datang Coal Industry Company Limited ("Datang Coal Industry Company"), a 
     wholly-owned subsidiary of CDC, the controlling shareholder of the Company, to set up 
     Inner Mongolia Datang Da Ta Energy Company Limited ("Da Ta Energy Company") for the 
     purposes of the construction and operation of the Da Ta Coal Logistics Park Zone. The 
     Company and Datang Coal Industry Company agreed to make capital contributions in the sum 
     of approximately RMB65.03 million and approximately RMB120.75 million, respectively, to 
     set up Da Ta Energy Company in the proportions of 35% and 65%, respectively. Da Ta Energy
     Company was established in 2011. For details of the transaction, please refer to the 
     announcement of the Company dated 17 October 2011.

(18) On 21 December 2011, the Company entered into a transfer agreement with Datang Shandong 
     Power Generation Company ("Datang Shandong Company"), a wholly-owned subsidiary of CDC, 
     the controlling shareholder of the Company, in relation to the transfer of the shutdown 
     capacity indices of small coal-fired power generating units, pursuant to which the 
     Company agreed to acquire the shut-down capacity indices of small coal-fired power 
     generating units owned by Datang Shandong Company in order to accelerate the construction
     of Phase 2 of the Company's Wushashan Power Plant Project. The transaction amount was 
     RMB144 million. For details of the transaction, please refer to the announcement of the 
     Company dated 21 December 2011.


The relevant procedures for reporting, announcement and approval by independent shareholders 
have been carried out for the aforesaid connected  transactions and continuing connected 
transactions in compliance with the requirements under Chapter 14A of the Listing Rules in 
relation to connected transactions.

The independent non-executive Directors have discussed the aforesaid transactions and 
confirmed such transactions are:

(1) in the 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 auditors 
of the Company to perform certain factual finding procedures on the above continuing 
connected transactions on a sample basis in accordance with  Hong Kong Standard on 
Related Services 4400 "Engagements to perform Agreed-Upon Procedures Regarding 
Financial Information" issued by the Hong Kong Institute of Certified Public 
Accountants. The auditors have reported their factual findings on the selected samples 
based on the agreed procedures to the Board. It stated that:

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

(2) the said transactions were made in accordance with the pricing policy of the 
    Company, if applicable;

(3) the said transactions were conducted pursuant to the relevant agreement governing 
    those transactions;

(4) the said transactions did not exceed their respective caps applicable to such
    transactions.

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 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 contributions as 
supplementary pension insurance funds. The Company may at its discretion provide 
additional non-recurring 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 
contributed 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 RMB2,469.120 million.


OTHER SIGNIFICANT  MATTERS


1. Pursuant to the resolutions passed at the 2011 second extraordinary general meeting 
   of the Company held on 26 August 2011, the Company distributed cash dividend of 
   RMB0.07 per share (tax included) to all shareholders for the year of 2010 on the 
   basis of the total share capital of 13,310,037,578 shares as at 31 May 2011.

2. Pursuant to the resolutions passed at the seventh meeting of the seventh session 
   of the Supervisory Committee  held  on  25  October 2011, the Supervisory 
   Committee approved the nomination of Mr. Zhou Xinnong as a candidate for a supervisor 
   representing shareholders of the seventh session of the Supervisory Committee
   of the Company; Mr. Fu Guoqiang would no longer assume the office of supervisor 
   due to work adjustment; The afore-mentioned matter regarding the adjustment of 
   supervisors was submitted to the 2011 fourth extraordinary general meeting of the 
   Company held on 6 December 2011 for consideration and approval.

3. On 16 December 2010, pursuant to the "Reply on the Approval of Non-public Offering 
   of Shares by Datang International Power Generation Co., Ltd."  
   (CSRC Approval No. [2010] 1842) issued by the China Securities Regulatory 
   Commission, the Company completed the non-public offering  of A shares in May 
   2011. Total issued share capital of the Company amounted to 13,310,037,578 shares with 
   newly-issued A shares of 1 billion 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


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 for Securities 
Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing 
Rules 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 2011 prepared under 
International Financial Reporting Standards were audited by RSM Nelson Wheeler.

PricewaterhouseCoopers Zhong Tian CPAs Limited Company and PricewaterhouseCoopers were the 
Company's domestic and international auditors for carrying out the audit work for year 2009,
and their respective term of service ended on the date of the 2009 annual general meeting. 
On the 2009 annual general meeting, RSM China Certified Public Accountants (Special General 
Partnership) and RSM Nelson Wheeler have been appointed as the Company's domestic and 
international auditors for carrying out the audit work for year 2010, and their respective 
term of service was further extended on the 2010 annual general meeting. For details of the 
change of auditors of the Company, please refer to the announcement of the Company dated 11 
June 2010.


                                                                        By Order of the Board 
                                                                                   Liu Shunda 
                                                                                     Chairman

                                                                                23 March 2012


Report of the Supervisory Committee


Mr Qiao Xinyi              During 2011, in compliance with the principle of being accountable
Chairman of the            to all shareholders of the Company and in accordance with the
Supervisory Committee      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 2011, 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 2011 is as follows:


A. SUPERVISORY COMMITTEE  MEETING
 
Convening of Supervisory Details   Details of the Subjects Discussed at the Supervisory 
of the Subjects Discussed at the   Committee Meetings
Supervisory Committee Meetings

On 22 March 2011, the 3rd meeting  Considered and approved "Work Report of the Supervisory
  of the seventh session of          Committee for Year 2010", "Proposal of Final Accounts for 
  Supervisory Committee of the       Year 2010","  2011 Financial Budget Report", "2010 Profit
  Company was held                   Distribution Proposal", and "Full Text of the 2010 Annual 
                                     Report and Summary of the Annual Report", "Results 
                                     Announcement" and "Resolution on the Correction of 
                                     Accounting Errors for Year 2010"

On 26 April 2011, the 4th meeting  Considered and approved the "Resolution on the Explanation 
  of the seventh session of          on the 2011 First Quarterly Report"
  Supervisory Committee of the 
  Company was held by way of 
  written correspondence

On 8 July 2011, the 5th meeting    Considered and approved the "Resolution on the Company's 
  of the seventh session of          Replacement of Self-financing Funds Already Committed in 
  Supervisory Committee of the       Advance to Fund-raising Projects with  Raised Funds"
  Company was held by way of 
  written correspondence

On 26 August 2011, the 6th         Considered and approved the "Resolutions on the Explanation
  meeting of the seventh session     on the Disclosure of 2011 Interim Results" and the "Specific
  of Supervisory Committee of the    Report on the Deposit and the Actual Application of the Fund
  Company was held                   Raised by the Company during the First Half of 2011".

On 25 October 2011, the 7th        Considered and approved the "Resolution on the Explanation on 
  meeting of the seventh session     the 2011 Third Quarterly Report" and the "Resolution on
  of Supervisory Committee of the    Adjusting Shareholders Representative Supervisor".
  Company was held


B. INDEPENDENT OPINIONS OF THE SUPERVISORY COMMITTEE ON THE COMPANY'S RELEVANT MATTERS

1. 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 2011 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.

2. Financial Activities of the Company

   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 Systems for Business Enterprises and Accounting Standards for Business 
   Enterprises, and that the Company's 2011 financial report and the standard unqualified audit 
   report issued by the accountants truthfully reflect the financial position and operating 
   results of the Company.

3. Actual Application of the Latest Fundraising Proceeds by the Company

   In May 2011, the Company raised proceeds amounting to RMB6,740,000,000 (a net amount of 
   RMB6,670,950,000) from the non-public offering of 1 billion A shares in total. These proceeds 
   had been fully utilised as at the end of 2011.

4. Acquisition and Disposal of Assets by the Company

   In 2011, the Company mainly carried out the acquisition of a 30% equity interest in Baxin 
   Railway and the sale of a 90.43% equity interest in Huaze Hydropower. The details are as 
   follows:

(1)   Pursuant to the agreement signed, the Company acquired a 20% equity interest in Baxin 
      Railway Company at a price of RMB533 million. Baxin Railway is an important channel for 
      the external transport of coal of Ximeng, which transports the coal of Ximeng to  
      Liaoning Province or to sea routes via Fuxin. The Company's investment in the equity 
      interest in Baxin Railway may help the Company further establish the external transport of
      coal from the Ximeng region while guaranteeing that the coal required in the Fuxin project
      is delivered, carrying significant strategic implications.

(2)   Pursuant to the agreement signed, the Company transferred its 90.43% (equivalent to a 
      transfer price of approximately RMB126,300,800) equity interest in Huaze Hydropower to 
      Hebei Feng Ning Pumped Storage Company Limited based on the valuation of net assets at 
      RMB139,666,900.

The above-mentioned acquisitions and disposals were considered and approved by the Board and 
among those acquisitions and disposals which constitute connected transactions, the Independent 
Directors have expressed independent opinions. The Supervisory Committee is of the view that the
considerations of the relevant acquisitions and disposals were reasonable, and did not harm the 
interests of the Company's shareholders.

5. The Connected Transactions Engaged by the Company

   In 2011, continuing connected transactions of the Company mainly carried out  included: 
   pursuant to  the Ash Disposal Agreement and the "2011 Supplemental Agreement entered into with
   China Datang Corporation ("CDC"), the Company paid a coal ash disposal fee of RMB57,890,000; 
   pursuant to the Framework Agreement for Centralised Materials Purchase entered into with China
   National Water Resources & Electric Power Materials & Equipment Corporation, a subsidiary of 
   CDC, during the period from 1 January 2011 to 31 December 2013, the annual cap for purchases 
   is RMB200 million; pursuant to the Financial Services Agreement entered into with China 
   Datang Group Finance Co., Ltd., a subsidiary of CDC, interest expenses of approximately 
   RMB234,490,000 and interest income of RMB44,300,000 were incurred through deposit services 
   and loan services, plus an average daily maximum deposit balance of RMB1.512 billion (the 
   agreed maximum average daily deposit balance was RMB6.643 billion). After checking, all the 
   said transactions did not exceed the agreed upon caps of transaction amount.

   During 2011, the Company entered into the following major connected transaction agreements as
   defined by the Listing Rules with CDC and the relevant subsidiaries: the Company provided a 
   counter-guarantee for the guarantee provided by China Datang Overseas (Hong Kong) Co., 
   Limited for the loan of the Hong Kong branch of the Company; the Company carried out a 
   transfer in the volume ratio of the closure of small-scale thermal power units with Datang 
   Shandong Company, a subsidiary of CDC, and CDC Hunan Branch Company, a branch of CDC; CDC 
   increased its capital contributions and enlarged its shareholding in Chaozhou Power 
   Generation and Ganzi Hydropower, both of them subsidiaries of the Company; Datang Electric 
   Power Fuel Co., Ltd., a subsidiary of CDC, increased its capital contributions and enlarged 
   its shareholding in Beijing Datang Fuel Company Limited; the Company increased its capital 
   contributions in China Datang Finance Co., Ltd., a subsidiary of CDC.

   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 
   Year 2011 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.


C. WORK PLAN FOR 2012

   In 2012, 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.


                                                                                  23 March 2012

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


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 2011, 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 2011, 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

23 March 2012


___________________________________________________________________________________________

Consolidated Statement of Comprehensive Income

For the year ended 31 December  2011

___________________________________________________________________________________________
                                                  Note              2011             2010 
                                                                 RMB'000          RMB'000
___________________________________________________________________________________________
Operating revenue                                    6        72,381,865       60,672,375

Operating costs  
                         
  Fuel for power and heat generation                         (42,152,791)     (32,143,481) 
  Fuel for coal sales                                         (2,331,552)      (2,693,996) 
  Depreciation                                                (8,604,808)      (7,381,972) 
  Repairs and maintenance                                     (1,898,832)      (1,897,715) 
  Salaries and staff welfare                                  (2,367,473)      (2,047,788) 
  Local government surcharges                                   (568,654)        (395,380) 
  Others                                                      (4,904,592)      (4,908,348)
___________________________________________________________________________________________

Total operating costs                                        (62,828,702)     (51,468,680)
___________________________________________________________________________________________
Operating profit                                               9,553,163        9,203,695

  Shares of profits of associates                   19           945,970          718,231    
  Shares of profits of jointly controlled entities                94,229            1,104
  Investment income                                               50,191           10,015
  Other gains                                        7            58,564          102,377
  Interest income                                                109,820           38,215 
  Finance costs                                      9        (7,102,002)      (5,373,337)
___________________________________________________________________________________________
Profit before tax                                              3,709,935        4,700,300 
  Income tax expense                                10          (667,786)        (871,355) 
___________________________________________________________________________________________

Profit for the year                                 11         3,042,149        3,828,945   
___________________________________________________________________________________________
Other comprehensive income after tax:           

  Reclassification adjustments for amounts 
    transferred to profit or loss upon disposals 
    of available-for-sale investments                                 (4)         (14,605) 
  Fair value loss on available-for-sale investments              (28,519)         (55,120) 
  Share of other comprehensive income of associates              (63,516)         (25,900)
  Foreign currency translation differences                        21,825           17,610
  Income tax relating to components of other
    comprehensive income                                           7,131           17,430
___________________________________________________________________________________________

Other comprehensive income for the year, net of tax              (63,083)         (60,585)
___________________________________________________________________________________________

Total comprehensive income for the year                        2,979,066        3,768,360
___________________________________________________________________________________________
Profit for the year attributable to:   
  
  Owners of the Company                                        1,971,200        2,569,734
  Non-controlling interests                                    1,070,949        1,259,211
___________________________________________________________________________________________

                                                               3,042,149        3,828,945
___________________________________________________________________________________________
Total comprehensive income for the year attributable to: 
        
    Owners of the Company                                      1,908,050        2,513,417
    Non-controlling interests                                  1,071,016        1,254,943
___________________________________________________________________________________________

                                                               2,979,066        3,768,360
___________________________________________________________________________________________
                                                                     RMB              RMB
Earnings per share
  Basic and diluted                                  15             0.15             0.21
___________________________________________________________________________________________



Consolidated Statement of Financial Position
At 31 December 2011
___________________________________________________________________________________________
                                                   Note              2011             2010
                                                                  RMB'000          RMB'000
ASSETS

Non-current assets
  Property, plant and equipment                      16       200,923,064      179,233,770
  Investment properties                              17           502,302          211,866
  Intangible assets                                  18         2,644,303        2,498,329
  Investments in associates                          19         5,289,166        4,591,838
  Investments in jointly controlled entities         20         3,585,867        2,649,778
  Available-for-sale investments                     21         2,710,073        2,304,158
  Deferred housing benefits                          22           102,839          132,530
  Deferred tax assets                                34         1,453,359          972,760
  Other non-current assets                                        412,628          428,477
___________________________________________________________________________________________

                                                              217,623,601      193,023,506
___________________________________________________________________________________________
Current assets

  Inventories                                        23         6,093,786        4,011,713
  Accounts and notes receivables                     24        10,208,546        8,158,622
  Prepayments and other receivables                  25         8,877,100        4,101,545
  Short-term entrusted loans to a jointly                        
    controlled entity                                26           365,198          100,153
  Tax recoverable                                                  61,586           76,820
  Cash and cash equivalents                          27         4,467,372        3,442,976
___________________________________________________________________________________________

                                                               30,073,588       19,891,829
___________________________________________________________________________________________

TOTAL ASSETS                                                  247,697,189      212,915,335
___________________________________________________________________________________________


Consolidated Statement of Financial Position
At 31 December 2011

___________________________________________________________________________________________
                                                 Note                2011              2010         
                                                                  RMB'000           RMB'000
___________________________________________________________________________________________

EQUITY AND LIABILITIES

Capital and reserves
  Share capital                                    28          13,310,038        12,310,038
  Reserves                                         30          23,037,968        15,343,804
  Retained earnings  
    Proposed dividends                             14           1,464,104           861,703
    Others                                                      1,128,582         2,334,526
___________________________________________________________________________________________
Equity attributable to owners of the Company                   38,940,692        30,850,071
Non-controlling interests                                      11,791,362         7,582,760
___________________________________________________________________________________________

Total equity                                                   50,732,054        38,432,831
___________________________________________________________________________________________
Non-current liabilities
  Long-term loans                                  31         117,654,356       109,585,377
  Long-term bonds                                  32           8,937,277         5,949,018
  Deferred income                                  33             504,071           460,989      
  Deferred tax liabilities                         34             585,488           439,226
  Provisions                                       35              41,680            41,603
  Other non-current liabilities                    36           5,827,268         3,723,182
___________________________________________________________________________________________

                                                              133,550,140       120,199,395
___________________________________________________________________________________________
Current liabilities
  Accounts payables and accrued liabilities        37          23,940,013        18,930,066
  Taxes payables                                                  771,475         1,165,696
  Dividends payables                                              154,881             2,336
  Short-term loans                                 38          21,523,709        19,374,828
  Short-term bonds                                 39           1,400,000                 -
  Current portion of non-current liabilities     31, 36        15,624,917        14,810,183
___________________________________________________________________________________________

                                                               63,414,995        54,283,109
___________________________________________________________________________________________

Total liabilities                                             196,965,135       174,482,504 
___________________________________________________________________________________________

TOTAL EQUITY AND LIABILITIES                                  247,697,189       212,915,335  
___________________________________________________________________________________________

Net current liabilities                                       (33,341,407)      (34,391,280) 
___________________________________________________________________________________________

Total assets less current liabilities                         184,282,194       158,632,226  
___________________________________________________________________________________________

Approved by the Board of Directors on 23 March 2012
 

                      Cao Jingshan                  Zhou Gang
                        Director                     Director



Please visit 
http://www.prnasia.com/sa/attachment/2012/05/20120508200711183480.80 Consolidated Statement.pdf
for the Consolidated Statement of Changes in Equity. 


Consolidated Statement of Cash Flows
For the year ended 31 December  2011

_________________________________________________________________________________________
                                                 Note              2011             2010
                                                                RMB'000          RMB'000 
_________________________________________________________________________________________
CASH FLOWS FROM OPERATING ACTIVITIES  

  Cash generated from operations                40(a)        14,104,378       18,352,813
  Interest received                                             109,820           38,215 
  Income tax paid                                            (1,279,484)        (881,439)  
_________________________________________________________________________________________

Net cash generated from operating activities                 12,934,714       17,509,589
_________________________________________________________________________________________
CASH FLOWS FROM INVESTING ACTIVITIES

  Additions to property, plant and equipment                (26,010,097)     (22,717,180)
  Additions to intangible assets                                (43,062)        (127,031)
  Acquisitions of subsidiaries                                 (929,602)         458,211 
  Additional investments in jointly controlled entities        (841,359)      (1,012,000)
  Establishments of associates                                  (26,000)               -
  Additional investments in associates                         (334,300)        (276,860)
  Investments in available-for-sale investments                (430,327)        (786,686)
  Acquisitions of non-controlling interests                     (33,279)        (590,039) 
  Prepayments for investments                                  (378,592)        (350,000)  
  Additional entrusted loans made                              (364,500)        (274,000)
  Deposits for land development                                (242,540)               -
  Proceeds from disposals of property, plant 
    and equipment                                                 8,025          209,690
  Proceeds from disposals of investment 
  properties                                                          -           10,800
  Disposal of a subsidiary                      40(c)           122,137                -
  Proceeds from disposals of associates                               -          319,848
  Proceeds from disposals of available-for-sale 
  investments                                                     1,336           62,734
  Repayments of entrusted loans                                 100,000          191,000
  Dividends received                                            581,213          264,413 
  Increase in security deposits for notes 
    payables                                                          -          (29,562) 
  Others                                                         66,603         (141,054)
_________________________________________________________________________________________

Net cash used in investing activities                       (28,754,344)     (24,787,716)
_________________________________________________________________________________________
CASH FLOWS FROM FINANCING ACTIVITIES

  Capital injections from non-controlling interests           2,405,626          671,982
  Disposal of ownership interests in 
    subsidiaries without loss of control        40(d)         1,763,576                -
  Drawdown of short-term loans                               40,231,192       46,051,309
  Drawdown of long-term loans                                27,006,551       32,397,025
  Issuance of short-term bonds                                1,400,000                -
  Proceeds from issue of shares, net of expenses              6,670,950        3,248,372
  Issuance of long-term bonds, net of issuance 
    costs                                                     2,976,000                -
  Proceeds from sale and leaseback transactions               2,187,173          415,977 
  Repayment of short-term loans                             (38,082,311)     (46,047,517) 
  Repayment of long-term loans                              (18,232,728)     (17,204,614) 
  Repayment of finance lease payables                          (505,998)      (1,319,845) 
  Interest paid                                              (9,001,178)      (7,237,519)  
  Dividends paid to owners of the Company                      (931,703)        (861,703) 
  Dividends paid to non-controlling interests                (1,067,213)        (942,526)
  Others                                                         (1,949)          21,824
_________________________________________________________________________________________

Net cash generated from financing activities                 16,817,988        9,192,765
_________________________________________________________________________________________

NET INCREASE IN CASH AND CASH EQUIVALENTS                       998,358        1,914,638

Effect of foreign exchange rate changes                          26,038           21,903

CASH AND CASH EQUIVALENTS AT 1 JANUARY                        3,442,976        1,506,435
_________________________________________________________________________________________

CASH AND CASH EQUIVALENTS AT 31 DECEMBER          27          4,467,372        3,442,976
_________________________________________________________________________________________


Notes to the Financial Statements

For the year ended 31 December 2011

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 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  2011. 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.

Related party disclosures

IAS 24 (Revised) "Related Party Disclosures" revises the definition  of a related 
party and provides a partial exemption of disclosing related party transactions for 
government-related entities.

A related party is a person or entity that is related to the Group.

(A)   A person or a close member of that person's family is related to the Group 
      if that person: 

(i)   has control or joint control over the Group;

(ii)  has significant  influence over the Group; or

(iii) is a member of the key management personnel of the Company or of a 
      parent of the Company. 

(B)   An entity is related to the Group (reporting entity) if any of the following 
      conditions applies:

(i)   The entity and the Company are members of the same group (which means that 
      each parent, subsidiary and fellow subsidiary is related to the others).

(ii)  One entity is an associate or joint venture of the other entity (or an 
      associate or joint venture of a member of a group of which the other entity 
      is a member).

(iii) Both entities are joint ventures of the same third party.

(iv)  One entity is a joint venture of a third entity and the other entity is an 
      associate of the third entity.

(v)   The entity is a post-employment benefit plan for the benefit of employees of 
      either the Group or an entity related to the Group. If the Group is itself 
      such a plan, the sponsoring employers are also related to the Group.

(vi)  The entity is controlled or jointly controlled by a person identified  in (A).

(vii) A person identified  in (A)(i) has significant  influence over the entity
      or is a member of the key management personnel of the entity (or of a parent of 
      the entity).

IAS 24 (Revised) exempts an entity  from the disclosure requirements in relation
to related party transactions and outstanding balances, including commitments, 
with

-- a government that has control, joint control or significant influence over 
   the entity; and

-- another entity that is a related party because the same government has control, 
   joint control or significant influence over both entities.

The entity that applies the exemption is required to disclose the following:

-- the name of the government and the nature of its relationship with the 
   entity (i.e. control, joint control or significant influence); and

-- the following information in sufficient detail to enable users of the entity's 
   financial statements to understand the effect of related party transactions on 
   its financial statements:

   i.  the nature and amount of each individually significant transaction; and
   ii. for other transactions that are collectively, but not individually, 
       significant, a qualitative or quantitative indication of their extent.

The revision of the definition of a related party has no material impact on the 
financial statements of the Group. The partial disclosure exemption relating to 
transactions between the Group and government-related  entities has been applied 
retrospectively. The Group discloses only individually  or collectively 
significant transactions with government-related entities.

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 2011, a significant  portion of the funding requirements of 
the Group for capital expenditures was satisfied by short- term borrowings. 
Consequently, at 31 December 2011, the Group had net current liabilities  of 
approximately RMB33.34 billion. The Group had significant undrawn borrowing 
facilities,  subject to certain conditions, amounting to approximately 
RMB145.35 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 Group structure as 
    at 31 December 2011 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 
           constant charge is allocated to each period during the lease term so as to produce a 
           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.

(I)   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 short-term entrusted loans, other receivables,  accounts and notes receivable 
      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 payables and accrued liabilities

      Accounts payables 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. 

      Dividend income is recognised when the shareholders' rights to receive payment 
      are established.

(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.

(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 payables are determined 
      by applying 17% or 13% or 6% on the taxable revenue after offsetting deductible input
      VAT of the period.

(aa)  Related parties

      A related party is a person or entity that is related to the Group.

      (A) A person or a close member of that person's family is related to the Group 
          if that person: 

          (i)   has control or joint control over the Group;

          (ii)  has significant  influence over the Group; or

          (iii) is a member of the key management personnel of the Company or of a
                parent of the Company. 

      (B) An entity is related to the Group (reporting entity) if any of the 
          following conditions applies:
 
          (i)   The entity and the Company are members of the same group (which
                means that each parent, subsidiary and fellow subsidiary is related 
                to the others).
 
          (ii)  One entity is an associate or joint venture of the other entity
                (or an associate or joint venture of a member of a group of which the
                other entity is a member).

          (iii) Both entities are joint ventures of the same third party.

          (iv)  One entity is a joint venture of a third entity and the other entity is
                an associate of the third entity.

          (v)   The entity is a post-employment  benefit plan for the benefit
                of employees of either the Group or an entity related to the Group. 
                If the Group is itself such a plan, the sponsoring employers are also
                related to the Group.

          (vi)  The entity is controlled or jointly controlled by a person 
                identified  in (A).
 
          (vii) A person identified  in (A)(i) has significant influence over the 
                entity or is a member of the key management personnel of the entity 
                (or of a parent of the entity).


          Government-related entities, other than entities under China Datang which
          is a state-owned  enterprise and its subsidiaries, directly or indirectly 
          controlled by the Central People's Government of the PRC ("Government-Related
          Entities") are also regarded as related parties of the Group.

          For the purpose of the related party transactions 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 Government-Related Entities to ensure the adequacy of disclosure
          for all material related party transactions given that many Government-Related 
          Entities have multi-layered corporate structures and the 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 
    Hong Kong dollar ("HKD"), United States dollar ("USD") and Euro dollar ("EUR"). 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 2011, if RMB had weakened  by 5 per cent (2010: 5 per cent) against 
    HKD, USD or EUR with  all other variables held constant, consolidated profit after
    tax for the year would have been RMB69,982 thousand (2010: RMB67,134 thousand) 
    lower, arising as a result of the foreign  exchange loss on HKD, USD and EUR loans
    and deposits. If RMB had strengthened  by 5 per cent (2010: 5 per cent) against
    HKD, USD or EUR with all other variables held constant, consolidated profit after 
    tax for the year would have been RMB69,982 thousand (2010: RMB67,134 thousand) 
    higher, arising as a result of the foreign  exchange  gain on HKD, USD and EUR
    loans and deposits.


(b) Price risk

    The Group's certain available-for-sale  investments  amounted to RMB67,531 
    thousand (2010: RMB91,043 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 2011 and 2010. 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 receivables, other receivables 
    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 government-related 
    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 
    government-related 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 receivables 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 receivables 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 2011, accounts and notes receivables due from the top five debtors
    amounted to RMB5,010,677 thousand (2010: RMB4,604,734 thousand), representing 
    49.08% (2010: 56.44%) of the total accounts and notes receivables. Except for 
    accounts and notes receivables, the Group has no significant  concentrations of 
    credit risk.

    Other receivables primarily include amounts due from related parties while all 
    short-term entrusted loans are lent to a jointly controlled entity. 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:

    _______________________________________________________________________________ 

                                                   Between    Between
                                      Less than      1 and      2 and
                                         1 year    2 years    5 years  Over 5 years
                                        RMB'000    RMB'000    RMB'000       RMB'000
    _______________________________________________________________________________

    At 31 December 2011
 
      Long-term loans                15,202,156 12,873,116 35,211,628    69,569,612
      Long-term bonds                         -          -  3,000,000     6,000,000
      Finance lease payables            695,443    914,261  2,844,305     3,513,856
      Other non-current liabilities, 
        excluding finance lease payables 82,774      9,000          -             -
      Accounts payables and 
        accrued liabilities          23,940,013          -          -             -
      Short-term loans               21,523,709          -          -             -
      Interest payables for loans     9,212,198  7,160,909 16,887,477    45,611,358
      Interest payables for bonds       439,500    439,500  1,045,500     1,237,500
    _______________________________________________________________________________

    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 non-current liabilities, 
        excluding finance lease payables 76,468     24,987      9,000             -
      Accounts payables 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
    _______________________________________________________________________________


(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 2011 
    and 2010.

    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 2011, if interest rates on RMB, HKD and USD denominated loans had been 50 
    basis points (2010: 50 basis points) lower respectively with all other variables held 
    constant, consolidated profit after tax for the year would have been RMB526,324 thousand 
    (2010: RMB503,604 thousand), RMB2,110 thousand (2010: RMB2,311 thousand) and RMB5,887 
    thousand (2010: RMB4,275 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 (2010: 50 basis points) higher respectively with all other 
    variables held constant, consolidated profit after tax for the year would have been 
    RMB526,324 thousand (2010: RMB503,604 thousand), RMB2,110 thousand (2010: RMB2,311 thousand) 
    and RMB5,887 thousand (2010: RMB4,275 thousand) lower, respectively, arising as a result of 
    an increase in interest expense on the loans.

(f) Categories of financial  instruments at 31 December 2011

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Financial assets:
      Loans and receivables (including 
        cash and cash equivalents)                 15,827,117   12,337,868
      Available-for-sale investments                2,710,073    2,304,158

    Financial liabilities:
      Financial liabilities  at amortised 
        cost                                      195,062,421  172,374,990
    ______________________________________________________________________

(g) Fair values

    Except as disclosed in notes 21, 31 and 32 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 2011:
    ______________________________________________________________________

    Description                                   Fair value measurement 
                                                   using Level 1:  
    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Available-for-sale investments 
      Equity securities                                67,531       91,043
    ______________________________________________________________________


6. OPERATING REVENUE

   The Group's operating revenue which primarily represents sales of electricity, 
   heat, coal and chemical products is as follows:
   ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
   ______________________________________________________________________

   Sales of electricity                           64,367,360   53,593,750
   Heat supply                                       719,013      539,680
   Sales of coal                                   2,937,638    2,823,291
   Sales of chemical products                      3,070,651    2,692,513
   Others                                          1,287,203    1,023,141  
   ______________________________________________________________________

                                                  72,381,865   60,672,375
   ______________________________________________________________________


7. OTHER GAINS
   ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
   ______________________________________________________________________

   Gain on disposal of a subsidiary                   58,239            -
   Gain on disposals of associates                         -       93,811
   Gain on disposals of available-for-sale investments   325        8,212 
   Others                                                  -          354
   ______________________________________________________________________
   
                                                      58,564      102,377
   ______________________________________________________________________


8. SEGMENT INFORMATION

   Executive directors and certain senior management (including chief accountant) of the
   Company (collectively referred to as the "Senior Management")  perform the function as 
   chief operating decision makers. 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 and 
   sales of coal ash, 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 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:
   ________________________________________________________________________________________

                                          Power     
                                     generation       Coal   Chemical      Other
                                        segment    segment    segment   segments      Total 
                                        RMB'000    RMB'000    RMB'000    RMB'000    RMB'000
   ________________________________________________________________________________________

   Year ended 31 December 2011

   Revenue from external customers   65,275,284  2,986,809  3,100,132  1,019,640 72,381,865
   Intersegment revenue                 425,307 23,512,906      4,500    156,728 24,099,441

   ________________________________________________________________________________________
 
   Segment profit                     1,329,805  1,658,588    471,600    197,314  3,657,307
   ________________________________________________________________________________________

   Depreciation and amortisation      8,425,131     56,425     71,490     98,129  8,651,175
   Gain/(loss) on disposals of 
     property, plant and equipment       13,004          -         14         (3)    13,015
   Loss on disposal of intangible 
       assets                                 -          -          -       (419)      (419)
   Gain on disposals of long-term 
       investments                       58,239          -          -          -     58,239
   Interest income                       97,324      4,558      4,695      3,243    109,820
   Interest expense                   6,594,829    315,227     48,755    119,409  7,078,220
   Share of profits of associates         2,396    663,761          -    202,760    868,917
   Shares of (losses)/profits of 
     jointly controlled entities         (9,076)    57,190          -          -     48,114
   Income tax expense                   346,797    248,745     49,909     20,356    665,807
   ________________________________________________________________________________________

   Year ended 31 December 2010

   Revenue from external customers   54,122,551  2,825,178  2,712,214  1,012,432 60,672,375
   Intersegment revenue                  74,030 21,770,917          -     95,186 21,940,133
   ________________________________________________________________________________________

   Segment profit                     3,314,713    841,185    331,707    141,885  4,629,490
   ________________________________________________________________________________________

   Depreciation and amortisation      7,036,509    189,173    101,466    102,770  7,429,918
   Net gain on disposals of 
     property, plant and equipment       47,810          -         27     10,084     57,921
   Gain on disposals of investment 
     properties                               -          -          -     26,813     26,813
   Gain on disposals of long-term 
     investments                             11          -          -     93,800     93,811
   Interest income                       29,211      1,347      1,670      5,987     38,215
   Interest expense                   4,800,594    238,386     37,986    126,053  5,203,019
   Share of profits of associates         7,653    474,427          -    109,179    591,259
   Shares of losses of jointly
     controlled entities                (14,384)    (2,657)         -          -    (17,041) 
   Income tax expense                   715,456     87,872     83,219     57,906    944,453
   ________________________________________________________________________________________



   __________________________________________________________________________________________

                                        Power     
                                   generation        Coal    Chemical       Other
                                      segment     segment     segment    segments       Total 
                                      RMB'000     RMB'000     RMB'000     RMB'000     RMB'000
   __________________________________________________________________________________________

   At 31 December 2011

   Segment assets 
   Including:                     173,575,788  22,574,026  49,088,856  11,223,724 256,462,394
     
     Investments in associates        505,662   1,927,786           -   2,817,723   5,251,171

     Investments in jointly 
       controlled entities          2,506,286     942,342           -           -   3,448,628

     Additions to non-current 
       assets (other than financial
       assets and deferred tax 
       assets)                     14,882,988   2,485,568  17,125,982     140,152  34,634,690
   __________________________________________________________________________________________

   Segment liabilities            148,527,057  15,622,773  37,287,079   3,440,531 204,877,440
   __________________________________________________________________________________________

   At 31 December 2010

   Segment assets
   Including:                     152,509,810  16,058,293  39,345,040  10,625,419 218,538,562

     Investments in associates        490,467   1,682,565           -   2,447,088   4,620,120

     Investments in jointly  
     controlled entities            1,693,442     845,959           -           -   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
   __________________________________________________________________________________________

   Segment liabilities            134,105,377  10,067,614  29,220,166   3,473,751 176,866,908
   __________________________________________________________________________________________



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

   ____________________________________________________________________________
                                                        2011            2010
                                                     RMB'000         RMB'000
   ____________________________________________________________________________

   Revenue

     Total revenue of reportable segments         96,481,306      82,612,508 
     Elimination of intersegment revenue         (24,099,441)    (21,940,133)
   ____________________________________________________________________________

   Consolidated revenue                           72,381,865      60,672,375
   ____________________________________________________________________________
   
   Profit or loss

     Total profit or loss of reportable segments   3,657,307       4,629,490

     Gain on disposals of available-for-sale 
       investments                                         5           8,212

     Dividend income from available-for-sale
       investments                                     4,940              40 

     Elimination of intersegment profits              (9,463)        (13,861)

     IFRS adjustment on reversal of general 
       provision on mining funds                      86,837         107,273

     Other IFRS adjustments                          (29,691)        (30,854)
   ____________________________________________________________________________

   Consolidated profit before tax                  3,709,935       4,700,300
   ____________________________________________________________________________

   Assets
 
     Total assets of reportable segments         256,462,394     218,538,562

     Deferred tax assets                           1,425,210         944,269

     Available-for-sale investments                   67,531          91,043

     Elimination of intersegment assets          (13,885,059)     (8,818,003)
     Reclassification of non-income taxes 
       recoverable                                 3,426,857       2,022,816

     IFRS adjustment on reversal of general 
       provision on mining funds                     175,734          82,095

     Other IFRS adjustments                           24,522          54,553
   ____________________________________________________________________________

   Consolidated total assets                     247,697,189     212,915,335
   ____________________________________________________________________________

   Liabilities

     Total liabilities of reportable segments   (204,877,440)   (176,866,908)
     Current tax liabilities                        (318,588)       (339,967)
     Deferred tax liabilities                       (556,624)       (414,377)
     Elimination of intersegment liabilities      12,243,238       5,186,413
     Reclassification of non-income taxes 
       recoverable                                (3,426,857)     (2,022,816)
     Other IFRS adjustments                          (28,864)        (24,849)
   ____________________________________________________________________________
 
   Consolidated total liabilities               (196,965,135)   (174,482,504)
   ____________________________________________________________________________




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

   Year ended 31 December 2011

     Share of profits of 
       associates                868,917               -        77,053            -       945,970
     Shares of profits of jointly 
       controlled entities        48,114               -        46,115            -        94,229
     Income tax expense          665,807          (2,377)        7,601       (3,245)      667,786
   ______________________________________________________________________________________________

   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
   ______________________________________________________________________________________________

   At 31 December 2011

     Investments in associates 5,251,171               -        37,995            -     5,289,166 
     Investments in jointly 
       controlled entities     3,448,628               -       137,239            -     3,585,867
   ______________________________________________________________________________________________

   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
   ______________________________________________________________________________________________


   Geographical information (under IFRS):

   During the years ended 31 December 2011 and 2010, all revenues from external customers are 
   generated domestically. At 31 December 2011, non-current assets (excluding financial assets 
   and deferred tax assets) amounted to RMB213,318,898 thousand (2010: RMB189,360,741 thousand) 
   and RMB44,904 thousand (2010: RMB47,444 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:

   ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
   ______________________________________________________________________

   Power generation segment 

     North China Grid Company Limited             19,658,707   17,948,672
     Guangdong Power Grid Corporation              8,298,202    4,822,035
     State Grid Corporation of China               6,029,222    5,495,123
   ______________________________________________________________________


9. FINANCE COSTS
   ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
   ______________________________________________________________________

   Interest expense on: 
     Short-term bank loans                           885,719      844,812
     Other short-term loans                          210,303      194,894
     Short-term entrusted loans                            -          361
     Long-term bank loans
       - Wholly repayable within five years        1,523,851    1,376,004
       - Not wholly repayable within five years    5,822,812    4,283,599
     Other long-term loans
       - Wholly repayable within five years          174,387      211,696
       - Not wholly repayable within five years       89,290       24,674
     Short-term bonds                                 13,975            -
     Long-term bonds                                 394,993      283,474
     Finance leases                                  354,683      190,243
     Acquisitions of property, plant and 
       equipment by instalments                        1,650        3,354
     Discounted notes receivables                     52,173       50,092
     Others                                           23,504            -
   ______________________________________________________________________

   Total borrowing costs                           9,547,340    7,463,203 

   Amount capitalised                             (2,469,120)  (2,083,847)
   ______________________________________________________________________

                                                   7,078,220    5,379,356 

   Exchange gain, net                                (38,107)     (28,069)
   Others                                             61,889       22,050
   ______________________________________________________________________

                                                   7,102,002    5,373,337
   ______________________________________________________________________

   Borrowing costs on funds borrowed generally are capitalised at a rate of 
   6.06% (2010: 5.33%) per annum.


10. INCOME TAX EXPENSE

    ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
    ______________________________________________________________________

    Current tax - PRC Enterprise Income Tax

      Provision for the year                        1,193,292    1,125,789 
      Under/(over)-provision in prior years             9,826         (833)

    ______________________________________________________________________
    
                                                    1,203,118    1,124,956
    ______________________________________________________________________

    Deferred tax (note 34)                           (535,332)    (253,601)
    ______________________________________________________________________

                                                      667,786      871,355
    ______________________________________________________________________


    The Company and its subsidiaries, other than as stated below, are generally subject to 
    PRC Enterprise Income Tax statutory  rate of 25% (2010: 25%).

    (i)   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.

    (ii)  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.

    (iii) 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.

    (iv)  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.

    (v)   Pursuant to document Cai Shui [2011]58 "Further Implementing the Western China 
          Development Strategy" issued by the MOF, the General Administration  of Customs and 
          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 are eligible
          to pay PRC Enterprise Income Tax at a preferential rate of 15% from 1 January 2011 to
          31 December 2020.


    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:

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Profit before tax                               3,709,935    4,700,300

    Tax at the domestic income tax rate of 
      25% (2010: 25%)                                 927,484    1,175,075 

    Tax effect of income that is not taxable         (331,779)    (137,611)

    Tax effect of expenses that are not deductible     34,554       24,769

    Tax effect of utilisation of tax losses
      not previously recognised                        (4,189)      (5,078)

    Tax effect of temporary differences not
      recognised                                      269,839      155,186

    Reversal of tax losses previously 
      recognised                                       33,359            -

    Under/(over)-provision in prior years               9,826         (833) 

    Tax effect of tax concession                     (264,995)    (350,486)
 
    Others                                             (6,313)      10,333
    ______________________________________________________________________

    Income tax expense                                667,786      871,355
    ______________________________________________________________________


11. PROFIT FOR THE YEAR

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

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________
  
    Auditors' remuneration                             13,780       11,800
 
    Acquisition-related costs (included in
      operating costs)                                    100        7,860 

    Amortisation of deferred income                   (33,760)     (48,238)

    Amortisation of intangible assets (included 
      in operating costs)                              18,335       23,409

    Cost of major inventories sold and consumed

      - Fuel                                       44,484,343   34,837,477

      - Spare parts and consumable supplies           494,000      589,106 

    Rental income generated from investment 
      properties                                      (15,714)      (9,260)

    Dividend income from available-for-sale 
      investments

      - Listed investments                             (4,985)        (450) 

      - Unlisted investments                          (37,369)      (8,877) 

    Net gains on disposals of property, plant 
      and equipment                                   (13,015)     (58,867) 

    Gain on disposals of investment properties              -      (26,813) 

    Reversal of allowance for accounts receivables        (70)        (130) 

    Reversal of allowance for other receivables           (88)     (41,685) 

    Reversal of allowance for inventories                 (97)           -

    Staff costs excluding directors' and 
      supervisors' emoluments                         

      - Salaries and welfares                       1,646,675    1,416,413

      - Retirement benefits                           265,339      229,138

      - Housing benefits                              185,137      168,102

      - Other costs                                   270,322      234,135
    ______________________________________________________________________



12. DIRECTORS', SUPERVISORS' AND EMPLOYEES' EMOLUMENTS

    The emoluments of each director and supervisor were as follows:

    ________________________________________________________________________________________

                                          Basic 
                                   salaries and           Retirement      Other
                               Fee   allowances    Bonus    benefits   benefits     Total
                           RMB'000      RMB'000  RMB'000     RMB'000    RMB'000   RMB'000
    ________________________________________________________________________________________


    Name of director

    Liu Shunda                   -            -        -           -          -         -
    Cao Jingshan                 -          200      358          39         34       631
    Hu Shengmu                   -            -        -           -          -         -        
    Fang Qinghai                 -            -        -           -          -         -  
    Zhou Gang                    -          179      350          31         34       594
    Liu Haixia                   -            -        -           -          -         - 
    Guan Tiangang                -            -        -           -          -         - 
    Su Tiegang                   -            -        -           -          -         - 
    Ye Yonghui                   -            -        -           -          -         - 
    Li Gengsheng                 -            -        -           -          -         - 
    Li Hengyuan                 75            -        -           -          -        75 
    Li Yanmeng                  75            -        -           -          -        75
    Zhao Zunlian                75            -        -           -          -        75
    Zhao Jie                    75            -        -           -          -        75
    Jiang Guohua                75            -        -           -          -        75
    ________________________________________________________________________________________

                               375          379      708          70         68     1,600
    ________________________________________________________________________________________


    Name of supervisor

    Fu Guoqiang    (i)           -            -        -           -          -         - 
    Qiao Xinyi                   -          187      327          36         34       584 
    Zhang Xiaoxu                 -            -        -           -          -         -             
    Guan Zhenquan                -          167      255          21         29       472
    Zhou Xinnong   (ii)          -            -        -           -          -         -
    ________________________________________________________________________________________

                                 -          354      582          57         63     1,056
    ________________________________________________________________________________________

    Total for 2011             375          733    1,290         127        131     2,656 
    ________________________________________________________________________________________


    Notes:

    (i)    Retired on 6 December 2011
    (ii)   Appointed on 6 December 2011


    _______________________________________________________________________________

                                       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                -            -        -          -         -        -
   Cao Jingshan              -          176      430         44        17      667
   Hu Shengmu                -            -        -          -         -        -
   Fang Qinghai              -            -        -          -         -        -
   Zhou Gang                 -          175      319         41        17      552
   Liu Haixia                -            -        -          -         -        - 
   Guan Tiangang             -            -        -          -         -        -
   Su Tiegang                -            -        -          -         -        -
   Ye Yonghui                -            -        -          -         -        -
   Li Gengsheng              -            -        -          -         -        -
   Xie Songlin    (i)        -            -        -          -         -        -
   Yu Changchun   (i)        -            -        -          -         -        -
   Liu Chaoan     (i)        -            -        -          -         -        -
   Li Hengyuan               75           -        -          -         -       75
   Xia Qing       (i)        -            -        -          -         -        -
   Li Yanmeng                75           -        -          -         -       75
   Zhao Zunlian              75           -        -          -         -       75
   Zhao Jie                  75           -        -          -         -       75
   Jiang Guohua              75           -        -          -         -       75
   _______________________________________________________________________________

                            375         351      749         85        34    1,594
   _______________________________________________________________________________
   Name of supervisor

   Fu Guoqiang               -            -        -          -         -        -
   Qiao Xinyi                -          183      307         45        17      552
   Zhang Xiaoxu              -            -        -          -         -        -
   Guan Zhenquan             -          164      195         37        17      413
   _______________________________________________________________________________

                             -          347      502         82        34      965
   _______________________________________________________________________________

   Total for 2010          375          698    1,251        167        68    2,559
   _______________________________________________________________________________

   Note: 

   (i) Retired on 19 August 2010  


   There was no arrangement under which a director or a supervisor waived or agreed to waive 
   any emoluments during the years ended 31 December 2011 and 2010.

   The five highest paid individuals in the Group during the year included 2 (2010: 1) 
   director(s) and no (2010: 1) supervisor whose emoluments are reflected in the analysis 
   presented above. The emoluments of the remaining 3 (2010: 3) individuals are set out below:

   ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
   ______________________________________________________________________

   Basic salaries and allowances                         541          543

   Bonus                                               1,053          943

   Retirement benefits                                    98          126

   Other benefits                                        102           51
   ______________________________________________________________________

                                                       1,794        1,663
   ______________________________________________________________________

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

   ______________________________________________________________________ 

                                                    Number of individuals
   ______________________________________________________________________ 

                                                        2011         2010
   ______________________________________________________________________ 

   Nil to RMB810,700 (2010: RMB850,900) 
     (equivalent to  HKD1,000,000)                         5            5
   ______________________________________________________________________

   During the years ended 31 December 2011 and 2010, 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% (2010: 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 2011 
    pursuant to these arrangements amounted to RMB334,820 thousand (2010: RMB284,816 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% (2010: 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 2011, the Group provided RMB189,805 thousand (2010: RMB168,980 
    thousand) to the fund.

14. DIVIDENDS

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Proposed final of RMB0.11 (2010: RMB0.07) 
      per share                                     1,464,104      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 RMB1,971,200 
    thousand (2010: RMB2,569,734 thousand) and the weighted average number of ordinary shares 
    of 12,893,371 thousand (2010: 12,192,421 thousand) in issue during the year.

    Diluted earnings per share

    During the years ended 31 December 2011 and 2010, the Company did not have any dilutive 
    potential ordinary shares. Therefore, diluted earnings per share is equal to basic earnings 
    per share.


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 2010     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 and 
      1 January 2011      2,146,761   50,889,163   106,606,796       2,243,565  2,363,588     57,089,442   221,339,315
    Transfer in/(out)             -    5,681,552     7,358,919         700,575    481,847    (14,496,226)     (273,333)
    Additions               133,210      115,441       178,379         116,042     67,843     27,505,023    28,115,938 
    Acquisition of   
      subsidiaries                -      813,100       428,393           6,618     64,999      1,536,161     2,849,271  
    Disposals                (3,179)    (207,240)      (40,622)        (25,810)       (28)             -      (276,879) 
    Disposal of a 
      subsidiary               (960)    (167,046)      (39,178)           (456)         -              -      (207,640)
    __________________________________________________________________________________________________________________

    At 31 December 2011   2,275,832   57,124,970   114,492,687       3,040,534  2,978,249     71,634,400   251,546,672
    __________________________________________________________________________________________________________________

    Accumulated 
     depreciation and 
     impairment losses     
    At 1 January 2010       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  
      and 1 January 2011    155,772    7,653,946    33,070,677         671,969    553,181              -    42,105,545
    Charge for the year      38,652    1,890,291     6,281,599         232,142    203,098              -     8,645,782 
    Disposals                  (110)     (44,881)      (12,648)         (6,350)       (26)             -       (64,015) 
    Disposal of a 
      subsidiary                (22)     (38,515)      (25,087)            (80)         -              -       (63,704)
    __________________________________________________________________________________________________________________

    At 31 December 2011     194,292    9,460,841    39,314,541         897,681    756,253              -    50,623,608
    __________________________________________________________________________________________________________________

    Carrying amount

    At 31 December 2011   2,081,540   47,664,129    75,178,146       2,142,853  2,221,996     71,634,400   200,923,064
    __________________________________________________________________________________________________________________

    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
    __________________________________________________________________________________________________________________



    During the year, depreciation expenses charged into operating costs and construction in 
    progress amounted to RMB8,588,644 thousand (2010: RMB7,376,954 thousand) and RMB57,138 
    thousand (2010: RMB42,276 thousand), respectively.

    At 31 December 2011 the carrying amount of property, plant and equipment pledged as
    security for the Group's long-term loans amounted to RMB4,152,799 thousand (2010: 
    RMB546,550 thousand).


    At 31 December 2011 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 RMB669,634 thousand (2010: RMB706,068 thousand), 
    RMB3,288,120 thousand (2010: RMB2,432,021 thousand), RMB777,328 thousand (2010: 
    RMB108,374 thousand) and RMB200,000 thousand (2010: RMB555,375 thousand) respectively.

    The Group's land use rights are analysed as follows:
    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Outside Hong Kong:

      Long leases                                     138,415      231,435         
      Medium-term leases                            1,943,125    1,759,554
    ______________________________________________________________________
  
                                                    2,081,540    1,990,989
    ______________________________________________________________________
 
17. INVESTMENT PROPERTIES
    ______________________________________________________________________
                                                                   RMB'000
    ______________________________________________________________________

    Cost

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

    At 31 December 2010 and 1 January 2011                         216,279

    Transfer in                                                    273,333
    Additions                                                       33,267
    ______________________________________________________________________ 


    At 31 December 2011                                            522,879
    ______________________________________________________________________ 

    Accumulated depreciation

    At 1 January 2010                                                    -
    Charge for the year                                              5,018
    Disposals                                                         (605)
    ______________________________________________________________________

    At 31 December 2010 and 1 January 2011                           4,413
    Charge for the year                                             16,164
    ______________________________________________________________________

    At 31 December 2011                                             20,577
    ______________________________________________________________________

    Carrying amount
    At 31 December 2011                                            502,302
    ______________________________________________________________________
 
    At 31 December 2010                                            211,866
    ______________________________________________________________________

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

   At 31 December 2011, the Group's total  future minimum lease payments under 
   non-cancellable operating leases of investment properties are receivable as 
   follows:

   ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
   ______________________________________________________________________

   Within one year                                     6,904        6,670

   In the second to fifth years inclusive              9,794       14,577

   After five years                                   15,418        9,000
   ______________________________________________________________________

                                                      32,116       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 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 
      and 1 January 2011        570,515   1,249,130       37,763      596,920      86,240     14,590   2,555,158
    Additions                         -           -            -       29,996      14,612          -      44,608
    Acquisition of 
      subsidiaries              130,830           -            -            -           -          -     130,830
    _____________________________________________________________________________________________________________
 
    At 31 December  2011        701,345   1,249,130       37,763      626,916     100,852     14,590   2,730,596
    _____________________________________________________________________________________________________________

    Accumulated amortisation
    At 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 
      and 1 January 2011              -       2,050       19,136          273      25,991      9,379      56,829
    Amortisation for 
      the year                        -       8,416        3,695        2,340       9,802      5,211      29,464
    _____________________________________________________________________________________________________________

    At 31 December  2011              -      10,466       22,831        2,613      35,793     14,590      86,293
    _____________________________________________________________________________________________________________

    Carrying amount 
    At 31 December 2011        701,345   1,238,664       14,932       624,303      65,059          -   2,644,303
    _____________________________________________________________________________________________________________
  
    At 31 December 2010        570,515   1,247,080       18,627       596,647      60,249      5,211   2,498,329
    _____________________________________________________________________________________________________________


    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:

    ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
    ______________________________________________________________________

    Power generation segment

      Qinghai Datang International Zhiganglaka 
        Hydropower Development                       273,795      273,795

      Jiangxi Datang International Xinyu Power 
        Generation Company Limited                   104,361      104,361

      Zhangjiakou Power Plant No. 2 generator         33,561       33,561
 
      Datang Tongzhou Technology Company Limited         949          949
 
      Inner Mongolia Datang International Hohhot 
        Thermal Power Generation Company Limited         902          902
 
      Yunnan Datang International  Deqin Hydropower 
        Development Limited                               18           18

      Chengdu Liguo Energy Company Limited, Chengdu 
        Qingjiangyuan Energy Company Limited and 
        Chengdu Zhongfu Energy Company Limited       130,830            -
    ______________________________________________________________________

                                                     544,416      413,586
    ______________________________________________________________________

    Coal segment

      Inner Mongolia  Datang International 
        Zhunge'er Mining  Company Limited             120,177      120,177

      Inner Mongolia  Baoli Coal Company 
        Limited                                        18,712       18,712
    ______________________________________________________________________
 
                                                      138,889      138,889
    ______________________________________________________________________

    Other segments
  
      Yuneng (Group) Company Limited                   18,040       18,040
    ______________________________________________________________________

                                                      701,345      570,515
    ______________________________________________________________________

    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
    __________________________________________________________________________
  
    Qinghai Datang International Zhiganglaka 
      Hydropower Development Company Limited            5 years          6.93%

    Jiangxi Datang International Xinyu Power 
      Generation Company Limited                        3 years          7.03%

    Inner Mongolia  Datang International 
      Zhunge'er Mining  Company Limited                 3 years         21.04%

    Chengdu Liguo Energy Company Limited, 
      Chengdu Qingjiangyuan Energy Company 
      Limited and Chengdu Zhongfu Energy 
      Company Limited                                   5 years          8.55%

    Others                                          3 - 5 years  5.42% - 9.87%
 
    __________________________________________________________________________

    Based on the assessments, the Group believes that there is no impairment of goodwill 
    at 31 December 2011 and 2010.

19. INVESTMENTS IN ASSOCIATES


    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Unlisted investments:
    Share of net assets                             5,289,166    4,591,838
    ______________________________________________________________________

    Details of the Group's associates at 31 December 2011 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 Institute Company 
      Limited                             PRC                  100,000     30%            -   Power related technology
                                                                                              services
    Tongfang Investment Company
      Limited                             PRC                  550,000     36%            -   Project investments and
                                                                                              management 
    Tongmei Datang Tashan Power 
      Generation Company Limited          PRC                  410,000     40%            -   Power generation

    Tongmei Datang Tashan Coal 
      Mine Company Limited                PRC                2,072,540     28%            -   Coal construction and 
                                                                                              mining
    Tangshan Huaxia Datang Power 
      Fuel Company Limited                PRC                   20,000     30%            -   Power fuel trading

    China Datang Group Finance Company    
      Limited ("Datang Finance") *        PRC                1,600,000      20%           -   Financial services

    Inner Mongolia Bazhu Railway
      Company Limited                     PRC                  100,000      20%           -   Railway and highway 
                                                                                              construction and  
                                                                                              operational management
    CNNC Liaoning Nuclear  Power 
      Co., Ltd.                           PRC                  100,000      20%           -   Nuclear power plant 
                                                                                              construction and 
                                                                                              operations
    Liaoning Diaobingshan Coal Gangue 
      Power Generation  Co., Ltd. 
      ("Diaobingshan Power Company")      PRC                  603,400      40%           -   Power generation

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

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

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

    Inner Mongolia  Datang Da Ta Energy   
      Company Limited                     PRC                   20,000      35%           -   Construction and 
                                                                                              operation of 
                                                                                              coal logistics park 
                                                                                              zone

    Datang Wealth Management Co., Ltd.    PRC                   50,000      30%           -   Investment management  
                                                                                              and advisory
    
    Fuxin Huanfa Wastage Disposal
      Company Limited                     PRC                   20,000        -         20%   Environmental greening

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

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

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

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

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

    *   Datang Finance is a non-bank financial institution.

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

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    At 31 December 
      Total assets                                 50,537,287   38,104,887 
      Total liabilities                           (32,968,578) (24,266,193)
    ______________________________________________________________________

    Net assets                                     17,568,709   13,838,694
    ______________________________________________________________________

    The Group's share of associates' net assets     5,289,166    4,591,838
    ______________________________________________________________________

    Year ended 31 December 
      Total revenue                                12,718,759    9,599,931
    ______________________________________________________________________

    Total profit for the year                       3,595,562    2,585,808
    ______________________________________________________________________

    The Group's share of associates' profit
      for the year                                    945,970      718,231
    ______________________________________________________________________


20. INVESTMENTS IN JOINTLY CONTROLLED ENTITIES


    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

     Unlisted investments:
     Share of net assets                            3,585,867    2,649,778
    ______________________________________________________________________

    Details of the jointly controlled entities at 31 December 2011 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  
      Development Company Limited   PRC                 825,023      50%            -   Investment holding
  
    Kailuan  (Group) Yuzhou Mining 
      Company Limited               PRC                 812,254      34%          15%   Coal mining and sales


    Inner Mongolia  Huineng Datang 
      Changtan Coal Mining
      Company Limited               PRC                  50,000      40%            -   Coal mining and sales

    Fujian Ningde Nuclear Power
      Company Limited               PRC               1,900,000      44%            -   Nuclear power plant
                                                                                        construction and 
                                                                                        operations
    _____________________________________________________________________________________________________________

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

    ______________________________________________________________________
                                                        2011         2010
                                                     RMB'000      RMB'000
    ______________________________________________________________________

    At 31 December 


      Current assets                               4,615,813    5,941,178
      Non-current assets                          32,604,632   20,771,068 
      Current liabilities                         (7,109,347) (10,169,992) 
      Non-current liabilities                    (21,552,514) (10,382,329)
    ______________________________________________________________________

    Net assets                                     8,558,584    6,159,925
    ______________________________________________________________________

    Proportionate shares of capital commitments    8,553,986    2,701,533
    ______________________________________________________________________

    Year ended 31 December

    Revenue                                        7,893,688    4,492,671
    ______________________________________________________________________

    Expenses                                      (7,835,417)  (3,836,804)
    ______________________________________________________________________

21. AVAILABLE-FOR-SALE INVESTMENTS

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Equity securities, at fair value
      Listed outside Hong Kong                         67,531       91,043


    Unlisted equity securities, at cost             2,642,542    2,213,115
    ______________________________________________________________________

                                                    2,710,073    2,304,158
    ______________________________________________________________________

    Market value of listed securities                  67,531       91,043
    ______________________________________________________________________


    The fair values of listed securities are based on current bid prices. All the 
    unlisted equity were 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 remaining average service 
    life 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 2011 (2010: nil). The benefits were amortised over 
    the remaining average service life of the relevant employees.

    ______________________________________________________________________

                                                                 RMB'000
    ______________________________________________________________________

    Cost

    At 1 January 2010, 31 December 2010, 1 January 
      2011 and 31 December 2011                                  662,532  
    ______________________________________________________________________

    Accumulated amortisation

    At 1 January 2010                                            499,148
    Charge for the year                                           30,854
    ______________________________________________________________________

    At 31 December 2010 and 1 January 2011                       530,002
    Charge for the year                                           29,691
    ______________________________________________________________________
 
    At 31 December 2011                                          559,693
    ______________________________________________________________________

    Carrying amount
    At 31 December 2011                                          102,839
    ______________________________________________________________________

    At 31 December 2010                                          132,530
    ______________________________________________________________________

23. INVENTORIES

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Raw materials                                    4,579,700   2,352,979
    Finished goods                                     522,591     915,437
    Others                                             991,495     743,297
    ______________________________________________________________________

                                                     6,093,786   4,011,713
    ______________________________________________________________________

    The carrying amount of inventories pledged as security for banking facilities 
    granted to the Group amounted to RMB86,454 thousand (2010: RMB103,964 thousand)
    (note 38).

24. ACCOUNTS AND NOTES RECEIVABLES

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


    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Accounts receivables from third parties         9,872,875    7,966,699
    Notes receivables from third parties              257,818      190,185 
    Accounts and notes receivables from related 
      parties                                          77,853        1,738
    ______________________________________________________________________

                                                   10,208,546    8,158,622
    ______________________________________________________________________

    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 receivables is as follows:

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Within one year                                10,044,753    8,013,428
    Between one to two years                           74,133      143,990
    Between two to three years                         89,009        1,096
    Over three years                                      651          108
    ______________________________________________________________________

                                                   10,208,546    8,158,622
    ______________________________________________________________________

    At 31 December 2011, the Group applied tariff  collection rights in securing 
    loans, for which details please refer to notes 31 and 38 to the financial 
    statements.

    Reconciliation of allowance for accounts and notes receivables:

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    At 1 January                                        5,912            -
    Acquisition of subsidiaries                             -        6,042
    Reversal of allowance                                 (70)        (130)
    ______________________________________________________________________

    At 31 December                                      5,842        5,912
    ______________________________________________________________________


    At 31 December 2011, accounts and notes receivables of RMB163,793 thousand 
    (2010: RMB145,194 thousand) were past due but not impaired. The major portion 
    of the past due accounts and notes receivables were due from certain local 
    thermal power companies and customers of coal purchases, and the directors 
    believe that such receivables can be recovered because such local thermal 
    companies and customers of coal purchases had no recent history of default. 
    The ageing analysis of these accounts and notes receivables is as follows:

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Between one to two years                           74,133      143,990
    Between two to three years                         89,009        1,096
    Over three years                                      651          108
    ______________________________________________________________________
  
                                                      163,793      145,194
    ______________________________________________________________________


25. PREPAYMENTS AND OTHER RECEIVABLES

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Prepayments                                     

      Prepayments for fuel and materials            2,627,814      395,262
      Prepayments for construction                     46,444       63,890
      Value added tax recoverable                   3,425,846    1,914,234
      Prepayment for an investment                    578,592      350,000
      Other taxes recoverable                          20,604       31,761
      Prepayments to related parties                  168,566        1,324
      Prepayments for transportation cost             239,159       95,023
      Others                                          220,444      177,212
    ______________________________________________________________________
 
                                                    7,327,469    3,028,706
    ______________________________________________________________________


    Other receivables                              

      Advanced payments for construction              403,648      411,569
      Receivables from disposals of property,
        plant and equipment                            14,201       61,819
      Staff advances                                   26,311       23,223
      Staff housing maintenance fund deposits          25,217       25,153
      Receivables from sales of materials             140,325       59,218
      Receivables from related parties                 11,685       64,172
      Deposits for land development                   334,763       92,223
      Others                                          638,216      380,285
    ______________________________________________________________________

                                                    1,594,366    1,117,662 

     Allowance for doubtful debts                     (44,735)     (44,823)
    ______________________________________________________________________

                                                    1,549,631    1,072,839
    ______________________________________________________________________
 
                                                    8,877,100    4,101,545
    ______________________________________________________________________


    Reconciliation of allowance for other receivables:

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________
 
    At 1 January                                       44,823        4,203
    Acquisition of subsidiaries                             -       88,273 
    Reversal of allowance                                 (88)     (41,685) 
    Amounts written off                                     -       (5,968)
    ______________________________________________________________________

    At 31 December                                     44,735       44,823
    ______________________________________________________________________

    At 31 December 2011, other receivables of RMB1,930 thousand (2010: RMB2,035 
    thousand) were past due but not impaired. These relate to a number of independent 
    customers for whom there is no recent history of default. The ageing analysis of
    these other receivables is as follows:

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Between two to three years                              -           90
    Over three years                                    1,930        1,945
    ______________________________________________________________________

                                                        1,930        2,035
    ______________________________________________________________________

26. SHORT-TERM ENTRUSTED LOANS TO A JOINTLY CONTROLLED ENTITY

    At 31 December 2011, the short-term entrusted loans to a jointly controlled entity 
    carried interest rate ranging from 6.1% to 6.56% (2010: 5.00%) 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 
    12 months from the end of the reporting period.

27. CASH AND CASH EQUIVALENTS

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Bank deposits                                   2,747,016    2,353,927
    Deposits with Datang Finance                    1,719,012    1,087,815
    Cash on hand                                        1,344        1,234
    ______________________________________________________________________

    Cash and cash equivalents                       4,467,372    3,442,976
    ______________________________________________________________________

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

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    RMB                                             4,159,265    3,231,787
    USD                                               307,833      210,613
    HKD                                                    98          442
    EUR                                                    23          126
    Singapore dollar                                      153            8
    ______________________________________________________________________
  
                                                    4,467,372    3,442,976
    ______________________________________________________________________


28. 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 (2010: RMB1) each

  At 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 and
    1 January 2011 (iii)                  8,994,360      3,315,678   12,310,038   8,994,360   3,315,678   12,310,038 
  Issue of shares (iv)                    1,000,000              -    1,000,000   1,000,000           -    1,000,000
_____________________________________________________________________________________________________________________

At 31 December  2011 (v)                  9,994,360      3,315,678   13,310,038   9,994,360   3,315,678   13,310,038
_____________________________________________________________________________________________________________________


    Notes:

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

    (ii)  In 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 issue 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 A shares were subject to lock-up 
          periods and were not freely tradable.

    (iv)  In May 2011, the Company issued 1,000,000,000 A shares to specific 
          investors by way of non-public offering at a subscription price of 
          RMB6.74 per share for a total  cash consideration of RMB6,740,000 
          thousand. The premium on the issue of shares, amounting to RMB5,670,950 
          thousand, net of share issue expenses, was credited to the Company's 
          capital reserve account.

    (v)   At 31 December 2011, 1,000,000,000 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 2011 was 79.52%
    (2010: 81.95%).

    The decrease in the assets-to-liabilities  ratio during 2011 was primarily due 
    to the increase of accounts and notes receivables accompanied by the growth in 
    operating revenue and the increase in cash and cash equivalents resulted from 
    issue of new shares. 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.

29. STATEMENT OF FINANCIAL POSITION OF THE COMPANY

    ______________________________________________________________________
                                                         2011         2010
                                                      RMB'000      RMB'000
    ______________________________________________________________________

    Property, plant and equipment                  11,326,953   10,131,643
    Investments in subsidiaries                    28,124,781   21,155,786
    Other non-current assets                       19,384,595   13,875,483
    Cash and cash equivalents                       2,302,521    2,145,796
    Other current assets                            5,032,978    4,406,609
    ______________________________________________________________________

    TOTAL ASSETS                                   66,171,828   51,715,317
    ______________________________________________________________________

    Share capital                                  13,310,038   12,310,038
    Reserves                                       25,381,187   17,797,509
    Long-term loans                                10,510,800   12,135,200
    Long-term bonds                                 8,937,277    5,949,018
    Other non-current liabilities                     309,916      334,317
    Short-term loans                                2,450,000      880,000
    Other current liabilities                       5,272,610    2,309,235
    ______________________________________________________________________

    TOTAL EQUITY AND LIABILITIES                   66,171,828   51,715,317
    ______________________________________________________________________

30. 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 2010                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              28  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
_____________________________________________________________________________________________________________________

At 1 January 2011                4,311,360   3,316,892      7,866,188      29,542      4,020  2,269,507  17,797,509

Total comprehensive income  
  for the year                           -           -              -           -          -  2,844,431   2,844,431

Issue of shares              28  5,670,950           -              -           -          -          -   5,670,950

Transfer from restricted                 -           -              -      (8,531)         -      8,531           -
  reserve                         

Transfer to surplus reserve              -     322,721      1,337,804           -          - (1,660,525)          -

Dividends paid                           -           -              -           -          -   (931,703)   (931,703)
_____________________________________________________________________________________________________________________

At 31 December 2011              9,982,310   3,639,613      9,203,992      21,011      4,020  2,530,241  25,381,187
_____________________________________________________________________________________________________________________


    (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, 2010 and 2011; 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 its 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.



31. LONG-TERM LOANS

______________________________________________________________________

                                                     2011         2010
                                                  RMB'000      RMB'000
______________________________________________________________________
Long-term bank loans                          129,143,046  118,352,026

Other long-term loans                           3,713,466    5,703,793
______________________________________________________________________
  
                                              132,856,512  124,055,819
______________________________________________________________________


Long-term loans are repayable as follows:


                                                     2011                                    2010    

                                                     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      13,909,226    1,292,930    15,202,156    13,229,902    1,240,540    14,470,442

In the second year                 12,437,186      435,930    12,873,116    16,078,045    3,120,540    19,198,585

In the third to fifth year, 
  inclusive                        34,452,838      758,790    35,211,628    30,714,130      641,620    31,355,750

After five years                   68,343,796    1,225,816    69,569,612    58,329,949      701,093    59,031,042
__________________________________________________________________________________________________________________

                                  129,143,046    3,713,466   132,856,512   118,352,026    5,703,793   124,055,819

Less: Amount due for settlement 
      within 12 months
      (shown under current
      liabilities)                (13,909,226)  (1,292,930)  (15,202,156)  (13,229,902)  (1,240,540)  (14,470,442)

__________________________________________________________________________________________________________________

Amount due for settlement 
  after 12 months                 115,233,820    2,420,536   117,654,356   105,122,124    4,463,253   109,585,377
__________________________________________________________________________________________________________________



Long-term loans are classified as follows:


                                                     2011                                    2010    

                                                     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                      48,178,194            -    48,178,194    46,196,300            -    46,196,300
 
Guaranteed loans                   10,910,520      773,705    11,684,225     5,197,430    1,922,793     7,120,223

Unsecured loans                    70,054,332    2,939,761    72,994,093    66,958,296    3,781,000    70,739,296
__________________________________________________________________________________________________________________

                                  129,143,046    3,713,466   132,856,512   118,352,026    5,703,793   124,055,819
__________________________________________________________________________________________________________________

Less: Amount due for settlement 
      within 12 months
      (shown under current
      liabilities)              
 
Secured loans                      (3,505,710)           -    (3,505,710)   (2,713,320)           -    (2,713,320) 

Guaranteed loans                     (785,737)    (110,000)     (895,737)   (2,717,450)  (1,120,540)   (3,837,990) 

Unsecured loans                    (9,617,779)  (1,182,930)  (10,800,709)   (7,799,132)    (120,000)   (7,919,132)
__________________________________________________________________________________________________________________

                                  (13,909,226)  (1,292,930)  (15,202,156)  (13,229,902)  (1,240,540)  (14,470,442)
__________________________________________________________________________________________________________________

Non-current portion

Secured loans                      44,672,484            -    44,672,484    43,482,980            -    43,482,980

Guaranteed loans                   10,124,783      663,705    10,788,488     2,479,980      802,253     3,282,233

Unsecured loans                    60,436,553    1,756,831    62,193,384    59,159,164    3,661,000    62,820,164
__________________________________________________________________________________________________________________

                                  115,233,820    2,420,536   117,654,356   105,122,124    4,463,253   109,585,377
__________________________________________________________________________________________________________________


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

                                                     2011                                    2010    

                                                     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                               129,003,671    2,898,139   131,901,810   118,352,026    4,781,000   123,133,026

USD                                   139,375      773,705       913,080             -      922,793       922,793

EUR                                         -       41,622        41,622             -            -             - 
__________________________________________________________________________________________________________________

                                  129,143,046    3,713,466   132,856,512   118,352,026    5,703,793   124,055,819
__________________________________________________________________________________________________________________



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

________________________________________________________________________
                                                      2011          2010
                                                   RMB'000       RMB'000
________________________________________________________________________

Long-term bank loans                         4.99% - 7.76%    2.16% - 8%

Other long-term loans                           1% - 6.65% 1.13% - 6.32%
________________________________________________________________________

Long-term loans of RMB5,788,505 thousand (2010: RMB4,686,354 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 2011, 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 RMB132,856,512 thousand (2010: RMB124,055,819 thousand). 
The discount rates applied as at 31 December 2011 were ranging from 1% to 7.76%
(2010: 1.13% to 8%) per annum.

At 31 December 2011, long-term bank loans amounted to RMB2,151,000 thousand 
(2010: RMB403,910 thousand) were secured by the following assets:


________________________________________________________________________
                                                     2011           2010
                                                  RMB'000        RMB'000
________________________________________________________________________

Inventories                                             -        103,964
Property, plant and equipment                   4,152,799        546,550
________________________________________________________________________

                                                4,152,799        650,514
________________________________________________________________________

At 31 December 2011, long-term bank loans amounted to RMB46,027,194 thousand (2010: 
RMB45,792,390 thousand) were secured by certain tariff collection rights of the Group.

At 31 December 2011, long-term  bank loans  amounted  to RMB10,910,520  thousand 
(2010: RMB5,197,430  thousand)  were guaranteed by the following parties:

________________________________________________________________________
                                                     2011           2010
                                                  RMB'000        RMB'000
________________________________________________________________________

The Company                                     6,930,902      3,967,706
A subsidiary of the Company                       141,500              -
China Datang                                       99,500        794,500
Certain non-controlling shareholders
  of subsidiaries                               3,438,618        435,224
Ex-shareholder of a subsidiary of the Company     300,000              -
________________________________________________________________________

                                               10,910,520      5,197,430
________________________________________________________________________

In addition, at 31 December 2011, long-term bank loans amounted to nil (2010: 
RMB990,000 thousand) guaranteed by the Company were counter-guaranteed by 
non-controlling shareholders of a subsidiary.


At 31 December 2011, other long term loans amounted to RMB1,887,230 thousand (2010: 
RMB781,000 thousand) which  were borrowed from Datang Finance were unsecured and 
interest-bearing at 5.04% to 6.35% (2010: 4.78% to 5.76%) per annum.


At 31 December 2011, other long-term loans amounted to nil (2010: RMB4,000,000 
thousand) were  borrowed  from non-bank financial institutions. Included in the 
amount was nil (2010: RMB1,000,000 thousand) which were guaranteed by the Company, 
of which nil (2010: RMB450,000 thousand) were counter-guaranteed by non-controlling 
shareholders of a subsidiary. The remaining balance amounted to nil (2010: 
RMB3,000,000 thousand) was unsecured.

At 31 December 2011, other long term loans included a loan amounted to RMB773,705 
thousand (2010: RMB922,793 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.



32. LONG-TERM BONDS

    ________________________________________________________________________
                                                         2011           2010
                                                      RMB'000        RMB'000
    ________________________________________________________________________

    Medium-term  notes (i)                          2,979,293      2,970,375
    Corporate bonds (ii)                            5,957,984      2,978,643
    ________________________________________________________________________

                                                    8,937,277      5,949,018
    ________________________________________________________________________

    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 2011, accrued interest for these notes amounted to RMB126,400 
          thousand (2010: RMB117,482 thousand).

    (ii)  Corporate bonds represented unsecured bonds issued by the Company on 19 
          August 2009 and 22 April 2011 with  par value of RMB100 each totalling 
          RMB6 billion. Such bonds are of 10-year term with fixed annual coupon 
          and effective interest rates of 5.00%/5.25% and 5.10%/5.36%, respectively. 
          At 31 December 2011, accrued interest for these bonds amounted to RMB171,608 
          thousand (2010: RMB58,533 thousand).

    At 31 December 2011, the fair value of long term bonds is estimated to be 
    RMB9,179,816 thousand (2010: RMB6,085,663 thousand). The fair value of medium-term 
    notes is derived from discounted future cash flows using bond interest rate with 
    similar terms of 4.98% (2010: 4.17%) per annum while the fair value of corporate 
    bonds is derived from quoted price available in the market.

33. DEFERRED INCOME


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

34. DEFERRED TAX

    The following are the major deferred tax assets (before offset) recognised by the Group:

    Please visit 
    http://www.prnasia.com/sa/attachment/2012/05/20120508200525794535.134%20Deferred%20Tax.pdf
    for the Deferred Tax table. 


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

    ________________________________________________________________________
                                                         2011           2010
                                                      RMB'000        RMB'000
    ________________________________________________________________________

    Deferred tax assets                             1,453,359        972,760
    Deferred tax liabilities                         (585,488)      (439,226)
    ________________________________________________________________________

                                                      867,871        533,534
    ________________________________________________________________________

    No deferred tax asset has been recognised in respect of certain unused tax losses of 
    RMB1,503,840 thousand (2010: RMB2,569,630 thousand) due to the unpredictability of 
    future profit streams. The related unrecognised tax losses will  expire in the following 
    years ending 31 December:

    ________________________________________________________________________
                                                         2011           2010
                                                      RMB'000        RMB'000
    ________________________________________________________________________

    2012                                                2,838         48,548
    2013                                              319,830        923,885
    2014                                              333,468        888,711
    2015                                              445,420        708,486 
    2016                                              402,284              -
    ________________________________________________________________________

                                                    1,503,840      2,569,630
    ________________________________________________________________________

35. PROVISIONS

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

    At 1 January 2011                              37,167             4,436       41,603
    Provisions used                                     -            (1,120)      (1,120) 
    Changes in present value                        1,197                 -        1,197
    ________________________________________________________________________________________

    At 31 December 2011                            38,364             3,316       41,680
    ________________________________________________________________________________________


    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.


36. OTHER NON-CURRENT LIABILITIES

    ________________________________________________________________________
                                                         2011           2010
                                                      RMB'000        RMB'000
    ________________________________________________________________________

    Finance lease payables                          6,162,250      3,957,795
    Others                                             87,779        105,128 
    ________________________________________________________________________

                                                    6,250,029      4,062,923 

    Less: Amount due for settlement within 
      12 months (shown under current liabilities)    (422,761)      (339,741)
    ________________________________________________________________________

                                                    5,827,268      3,723,182
    ________________________________________________________________________


    Finance lease payables



                                                                          Present value of minimum  
                                                Minimum lease payments          lease payments  

                                                     2011         2010          2011         2010
                                                  RMB'000      RMB'000       RMB'000      RMB'000
    _______________________________________________________________________________________________
 
    Within one year                               695,443      536,556       344,383      267,751
    In the second to fifth years, inclusive     3,758,566    2,646,489     2,675,059    1,692,334
    After five years                            3,513,856    2,535,871     3,142,808    1,997,710
    _______________________________________________________________________________________________

                                                7,967,865    5,718,916     6,162,250    3,957,795
    Less: Future finance charges               (1,805,615)  (1,761,121)          N/A          N/A
    _______________________________________________________________________________________________


    Present value of lease obligations          6,162,250     3,957,795    6,162,250    3,957,795

    _______________________________________________________________________________________________

    Less: Amount due for settlement within 
      12 months (shown under current 
      liabilities)                                                          (344,383)    (267,751)
    _______________________________________________________________________________________________

    Amount due for settlement 
      after 12 months                                                      5,817,867    3,690,044
    _______________________________________________________________________________________________

    It is the Group's policy to lease certain of its plant, property and equipment under 
    finance leases. The average lease term is 11 years (2010: 12 years). At 31 December 2011, 
    the average effective borrowing rate was 6.33% (2010: 5.39%) 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 RMB411,152 thousand  (2010: 
    RMB720,980 thousand) were guaranteed  by the Company for the same amount while  certain 
    the Group's finance lease payables amounted to RMB486,681 thousand (2010: RMB810,216 
    thousand) were secured by restricted deposits of RMB116,836 thousand (2010: RMB122,085 
    thousand), all of which will be refunded after settlements of last installments of 
    respective finance lease arrangements.

    At 31 December 2011, the total  future minimum sublease payments expected to be received 
    under non-cancellable subleases amounted to RMB93,693 thousand (2010: RMB115,995 
    thousand).


37. ACCOUNTS PAYABLES AND ACCRUED LIABILITIES


    __________________________________________________________________________
                                                           2011           2010
                                                        RMB'000        RMB'000
    __________________________________________________________________________
    Accounts and notes payables
      Fuel and materials payables to third parties    8,323,277      7,100,568
      Fuel and materials payables to related parties    153,138         49,076
      Notes payables to third parties                 1,685,269        980,127
    __________________________________________________________________________

                                                     10,161,684      8,129,771

    Construction payables to third parties            9,462,257      8,132,531
    Construction payables to related parties            341,430        209,902
    Acquisition considerations payables                 164,989         91,627
    Receipts in advance from related parties             11,312            591
    Receipts in advance from third parties              556,701        621,925
    Salaries and welfares payables                       64,346         51,444
    Interests payables                                  580,359        390,087
    Other payables to related parties                   204,789         95,528
    Others                                            2,392,146      1,206,660
    __________________________________________________________________________
 
                                                     23,940,013     18,930,066
    __________________________________________________________________________

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

    ________________________________________________________________________
                                                         2011           2010
                                                      RMB'000        RMB'000
    ________________________________________________________________________

    Within one year                                 9,537,844      8,129,771
    Between one to two years                          623,840              -
    ________________________________________________________________________

                                                   10,161,684      8,129,771
    ________________________________________________________________________


38. SHORT-TERM LOANS

    ________________________________________________________________________
                                                         2011           2010
                                                      RMB'000        RMB'000
    ________________________________________________________________________

    Short-term bank loans                          18,404,009     16,665,728
    Other short-term loans                          3,119,700      2,709,100
    ________________________________________________________________________
 
                                                   21,523,709     19,374,828
    ________________________________________________________________________


    Short-term loans are classified as follows:



                                                   2011                              2010 

                                                  Other                              Other  
                                 Short-term  short-term              Short-term short-term  
                                 bank loans       loans       Total  bank loans      loans        Total
                                    RMB'000     RMB'000     RMB'000     RMB'000    RMB'000      RMB'000
    ___________________________________________________________________________________________________

    Secured loans                 1,082,940           -   1,082,940     669,370          -      669,370
    Guaranteed loans                962,619           -     962,619     816,336          -      816,336
    Unsecured loans              16,358,450   3,119,700  19,478,150  15,180,022  2,709,100   17,889,122
    ___________________________________________________________________________________________________

                                 18,404,009   3,119,700  21,523,709  16,665,728  2,709,100   19,374,828
    ___________________________________________________________________________________________________



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

                                                   2011                              2010 

                                                  Other                              Other  
                                 Short-term  short-term              Short-term short-term  
                                 bank loans       loans       Total  bank loans      loans        Total
                                    RMB'000     RMB'000     RMB'000     RMB'000    RMB'000      RMB'000
    ___________________________________________________________________________________________________

    RMB                          17,184,608   3,119,700  20,304,308  15,921,339  2,709,100   18,630,439
    USD                             656,782           -     656,782     128,053          -      128,053
    HKD                             562,619           -     562,619     616,336          -      616,336
    ___________________________________________________________________________________________________

                                 18,404,009   3,119,700  21,523,709  16,665,728  2,709,100   19,374,828
    ___________________________________________________________________________________________________

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

    ________________________________________________________________________
                                                         2011           2010
                                                      RMB'000        RMB'000
    ________________________________________________________________________

    Short-term bank loans                       1.31% - 8.50%  1.31% - 5.56%
    Other short-term loans                      5.04% - 6.56%  3.89% - 5.23%
    ________________________________________________________________________

    Short-term loans of RMB11,100,699 thousand (2010: RMB7,297,432 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 2011, short-term bank loans amounted to RMB1,032,940 thousand 
    (2010: RMB669,370 thousand) were secured by certain tariff collection rights
    of the Group.

    At 31 December 2011, short-term  bank loans amounted to RMB50,000 thousand 
    (2010: nil) were secured by the inventories amounted to RMB86,454 thousand 
    (2010: nil).

    At 31 December 2011, short-term bank loans amounted to RMB320,000 thousand 
    (2010: RMB200,000 thousand) and RMB80,000 thousand (2010: nil) were guaranteed 
    by the Company and a subsidiary of the Company respectively.

    At 31 December 2011, short-term bank loans amounted to RMB562,619 thousand 
    (2010: RMB616,336 thousand) were guaranteed by a related party and secured 
    by a charge over 358,680,000 H shares of the Company executed by the related 
    party in favour of the bank and counter-guaranteed by the Company.


    At 31 December 2011, other short-term loans amounted to RMB1,844,700 thousand 
    (2010: RMB2,709,100 thousand) which was borrowed from Datang Finance was unsecured 
    and interest-bearing  at 5.04% to 6.35% (2010: 4.37% to 5.23%) per annum.

39. SHORT-TERM BONDS


    At 31 December 2011, short-term bonds represented unsecured bonds issued by the Group
    in October 2011 and November 2011 at par value of RMB100 each with annual coupon and 
    effective interest rate of ranging from 5.99% to 6.86% and matured within 12 months.

40. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

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

        _______________________________________________________________________________
                                                                    2011           2010
                                                                 RMB'000        RMB'000
        _______________________________________________________________________________

        Profit before tax                                      3,709,935      4,700,300
 
        Adjustments for:

          Depreciation of property, plant and equipment        8,588,644      7,376,954
          Depreciation of investment properties                   16,164          5,018
          Amortisation of intangible assets                       17,698         23,409
          Amortisation of long-term deferred expenses             28,669         24,537  
          Amortisation of deferred income                        (33,760)       (48,238)
          Amortisation of deferred housing benefits               29,691         30,854 
          Net gains on disposals of property, plant and  
            equipment                                            (13,045)       (58,867)
         Loss on disposal of intangible assets                       419              -
         Write-off of property, plant and equipment                    4             29
         Gain on disposals of investment properties                    -        (26,813)      
         Interest income                                        (109,820)       (38,215)
         Finance costs                                         7,102,002      5,323,245 
         Dividend income                                         (42,221)        (9,327) 
         Interest income from entrusted loans lent 
           to a jointly controlled entity                         (7,970)          (688) 
         Reversal of allowance for accounts receivables              (70)          (130) 
         Reversal of allowance for other receivables                 (88)       (41,685)
         Reversal of allowance for inventories                       (97)             -
         Shares of profits of associates                        (945,970)      (718,231) 
         Shares of profits of jointly controlled entities        (94,229)        (1,104) 
         Gain on disposals of available-for-sale  
           investments                                              (325)        (8,212) 
         Gain on disposals of associates                               -        (93,811) 
         Gain on disposal of a subsidiary                        (58,239)             -
         Other gains - others                                          -           (354)
        ________________________________________________________________________________
 
        Operating profit before working capital changes       18,187,392     16,438,671 
          Increase in inventories                             (2,081,976)    (1,004,442) 
          Increase in accounts and notes receivables          (2,037,829)    (1,353,059)
          (Increase)/decrease in prepayments and other 
            receivables                                       (4,073,875)     1,702,471
          Increase in accounts payables and accrued       
            liabilities                                        4,432,227      1,858,290
        (Decrease)/increase in taxes payables                 (321,561)       710,882
        ________________________________________________________________________________

        Cash generated from operations                        14,104,378     18,352,813
        ________________________________________________________________________________


    (b) Major business combinations other than under common control

        On 31 March 2011, the Group acquired 100% of the respective issued capital of Chengdu
        Liguo Energy Company Limited, Chengdu Qingjiangyuan Energy Company Limited and Chengdu 
        Zhongfu Energy Company Limited in order to gain 54.44% indirect equity interest in 
        Sichuan Jinkang Electricity  Development Company Limited ("Jinkang  Company") for a 
        total cash consideration  of RMB996,835 thousand. Jinkang Company was engaged in 
        hydropower generation during the year.

        The carrying amount and the fair value of the identifiable assets and liabilities
        of the above subsidiaries acquired as at their 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                 1,323,236     1,387,509    2,710,745
          Cash and cash equivalents                        86,798             -       86,798
          Other current assets                            182,415             -      182,415
          Loans                                        (1,140,000)            -   (1,140,000) 
          Deferred tax liabilities                              -      (208,126)    (208,126) 
          Other current liabilities                       (78,338)            -      (78,338)
        _____________________________________________________________________________________
    
                                                          374,111     1,179,383    1,553,494 

        Non-controlling interests                        (150,162)     (537,327)    (687,489)
        _______________________________________________________________________

        Goodwill                                                                      130,830
        _____________________________________________________________________________________

        Satisfied by:
          Cash                                                                        996,835
        _____________________________________________________________________________________

        Net cash outflow arising on acquisition:
        Cash consideration paid                                                      (996,835) 
        Cash and cash equivalents acquired                                             86,798
        _____________________________________________________________________________________

                                                                                    (910,037)
        _____________________________________________________________________________________

        The goodwill arising on the acquisition  of above subsidiaries  is attributable to 
        the anticipated profitability  of their hydropower generation operations and the 
        anticipated future operating synergies from the combination.

        The above subsidiaries contributed RMB4,835 thousand to the Group's profit for 
        the year between their date of acquisition and the end of the reporting period.

        If the above acquisition  had been completed on 1 January 2011, total  Group revenue 
        for the year would  have been RMB72,501,467 thousand, and profit  for the year would 
        have been RMB3,044,420 thousand. The proforma information is for illustrative  purposes 
        only and is not necessarily an indication of the revenue and results of operations of 
        the Group that actually would have been achieved had the acquisition been completed on 
        1 January 2011, nor is intended to be a projection of future results.



    (c) Disposal of a subsidiary

        On 1 January 2011, the Group disposed of all its 90.43% equity interest 
        in Hebei Datang International  Huaze Hydropower Development Company Limited.

        Net assets at the date of disposal were as follows:

        _____________________________________________________________________________________
      
                                                                                    RMB'000
        _____________________________________________________________________________________

        Property, plant and equipment                                               143,936
        Cash and cash equivalents                                                     4,164
        Other current assets                                                            705
        Long-term bank loans                                                        (72,500)
        Other current liabilities                                                    (1,040)
        _____________________________________________________________________________________

        Net assets disposed of                                                       75,265
        Non-controlling interests                                                    (7,203)
        Gain on disposal of a subsidiary                                             58,239
        _____________________________________________________________________________________

        Total consideration - satisfied by cash                                     126,301
        _____________________________________________________________________________________

        Net cash inflow arising on disposal: 
        Cash consideration received                                                 126,301
        Cash and cash equivalents disposed of                                        (4,164)
        _____________________________________________________________________________________

                                                                                    122,137
        _____________________________________________________________________________________


    (d) Disposal of interests in subsidiaries without loss of control

        During the year, the non-controlling shareholders of three subsidiaries of the Company 
        injected capital of RMB1,763,576 thousand into the subsidiaries and resulted in decrease 
        in ownership interests in the subsidiaries without loss of control. The ownership interests
        in the three subsidiaries were reduced from 100%, 75% and 100% to 51%, 52.5% and 60% 
        respectively. The effect of the disposals on the equity attributable  to the owners 
        of the Company is as follows:


        _____________________________________________________________________________________

                                                                                    RMB'000
        _____________________________________________________________________________________

        Capital injection received                                                1,763,576
        Share of net assets in the subsidiaries disposed of                      (1,329,843) 
        _____________________________________________________________________________________

        Gain on disposal recognised directly in equity                              433,733
        _____________________________________________________________________________________


    (e) Material non-cash transactions

        Additions to property, plant and equipment during the year of RMB342,406 thousand 
        (2010: RMB556,056 thousand) were financed by finance leases.


41. FINANCIAL GUARANTEES

    The Group issues financial guarantee contracts to its associates, jointly controlled entities 
    and other equity investees 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 and other equity investees 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:

    _______________________________________________________________________________
                                                                2011           2010
                                                             RMB'000        RMB'000
    _______________________________________________________________________________

    Associates                                               470,800        170,000
    Jointly controlled entities                              572,300        614,500
    Other equity investees                                    84,000        108,000 
    _______________________________________________________________________________
 
                                                           1,127,100        892,500
    _______________________________________________________________________________

    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:


    _______________________________________________________________________________
                                                                2011           2010
                                                             RMB'000        RMB'000
    _______________________________________________________________________________


    Property, plant and equipment                       
      Contracted but not provided for                     26,468,785     15,800,987
      Authorised but not contracted for                   16,553,592     16,219,088
    Equity investments                                    
      Contracted but not provided for                        390,000      1,024,710
    Intangible assets 
      Contracted but not provided for                              -      3,251,100
    _______________________________________________________________________________
    
                                                          43,412,377     36,295,885
    _______________________________________________________________________________


43. LEASE COMMITMENTS

    At 31 December 2011 the total future minimum lease payments under non-cancellable 
    operating leases are payable as follows:

    _______________________________________________________________________________
                                                                2011           2010
                                                             RMB'000        RMB'000
    _______________________________________________________________________________

    Within one year                                           29,029         26,158
    In the second to fifth years inclusive                    41,446         51,747
    After five years                                          21,230         23,336
    _______________________________________________________________________________

                                                              91,705        101,241
    _______________________________________________________________________________


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 respective subsidiaries

        _______________________________________________________________________________
                                                                    2011           2010
                                                                 RMB'000        RMB'000
        _______________________________________________________________________________


        China Datang Group                                      

          Sales of electricity                                    91,493              - 
          Clean development mechanism income                       9,160              -
          Sales of coal                                          214,980          4,880
          Receipt of coal ash disposal service                    57,890         57,890  
          Purchases of materials and equipment                   410,765        489,630
          Purchases of fuel                                      142,199         25,763
          Receipt of equipment purchase agency services                -          3,078
          Operating lease expenses for buildings and facilities   22,228         22,228
          Receipt of repairs and maintenance services             16,270         12,047
          Provision of entrusted loans                                 -         24,000
          Sales of pre-project assets                                  -         92,670
          Provision of technical support services                    421            420
          Receipt of transportation services                      32,000              -
        _______________________________________________________________________________
  
        Associates of the Group    
                              
          Purchases of fuel                                       66,471         61,121
          Receipt of technical support services                   65,609         66,929
          Drawdown of loans                                    9,051,500     14,641,600 
          Interest expense on loans                              234,492        193,121
          Interest income on deposits                             44,296         15,407
        _______________________________________________________________________________

        Subsidiary of an associate of the Group                

          Purchases of fuel                                      588,844        497,909
  
        Jointly controlled entities of the Group

          Purchases of fuel                                      319,348        318,359
          Provision of entrusted loans                           364,500        250,000
          Interest income on entrusted loans                       7,970            688
        _______________________________________________________________________________

        During the year, the Company set up a 35% owned associate with a subsidiary of 
        China Datang for a capital injection of RMB7,000 thousand.
 
        During the year, China Datang Group injected capital to three subsidiaries of 
        the Company amounted to RMB874,036 thousand, RMB557,000 thousand and RMB332,540 
        thousand respectively.

        (ii)  Financial guarantees and financing facilities with China Datang Group 
              and associates and jointly controlled entities of the Group

              _______________________________________________________________________________
                                                                          2011           2010
                                                                       RMB'000        RMB'000
              _______________________________________________________________________________

              China Datang Group

                Long-term loans of the Group guaranteed by 
                  China Datang                                         563,723      1,348,176
                Short-term loans of the Group guaranteed by 
                  a subsidiary of China Datang and secured 
                  by a charge over 358,680,000 H shares of 
                  the Company executed by that subsidiary in 
                  favour of the bank and counter-guaranteed
                  by the Company                                       562,619        616,336

              Associates of the Group

                Long-term loans of the associates guaranteed 
                  by the Company                                       470,800        170,000
                Integrated credit facilities provided by 
                  an associate                                      18,000,000      4,500,000

              Jointly controlled entities of the Group

                Long-term loans of jointly controlled entities 
                  guaranteed by the Company                            320,800        389,500
                Short-term loans of a jointly controlled entity 
                  guaranteed by the Company                            251,500        225,000
              _______________________________________________________________________________

        (iii) Significant transactions with Government-Related Enterprises

              During the years ended 31 December 2011 and 2010, the Group sold substantially  
              all of its electricity to local government-related power grid companies. Please 
              refer the details of information  of power generation revenue to major power grid 
              companies to note 8 to the financial statements. The Group maintained most of its 
              bank deposits in government-related  financial institutions while lenders of most 
              of the Group's loans are also government-related financial institutions, associated 
              with the respective interest income or interest expense incurred.

              During the years ended 31 December 2011 and 2010, other collectively significant 
              transactions with Government-Related Entities also included purchases of fuel 
              and property, plant and equipment.

         (iv) Compensation to key management personnel of the Group

              _______________________________________________________________________________
                                                                          2011           2010
                                                                       RMB'000        RMB'000
              _______________________________________________________________________________

              Basic salaries and allowances                              1,958          1,965
              Bonus                                                      2,973          2,829
              Retirement benefits                                          276            372
              Other benefits                                               279            153
              _______________________________________________________________________________

                                                                         5,486          5,319 
              _______________________________________________________________________________

              Further details of directors' and supervisors' emoluments are included in note 12 to 
              the financial statements.


    (b) Significant balances with related parties

        (i)   Significant balances with China Datang Group and associates and jointly controlled 
              entities of the Group and their respective subsidiaries

              _______________________________________________________________________________
                                                                          2011           2010
                                                                       RMB'000        RMB'000
              _______________________________________________________________________________

              China Datang Group

                Deposits paid for property, plant and equipment
                  (included in property, plant and equipment)                -        109,616
                Accounts and notes receivables                          77,853          1,738   
                Prepayments and other receivables                      170,774         64,518
                Accounts payables and accrued liabilities              575,679        268,960

              Associates of the Group 

                Prepayments and other receivables                        6,168            978
                Accounts payables and accrued liabilities               55,488         41,795
                Other non-current liabilities                          112,000              -

              Subsidiary of an associate of the Group

                Accounts payables and accrued liabilities               58,853         26,128

              Jointly controlled entities of the Group 

                Prepayments and other receivables                        3,309              -
                Accounts payables and accrued liabilities               20,648         18,214
                Short-term entrusted loans                             365,198        100,153
              _______________________________________________________________________________

              Except for short-term entrusted loans stated above, all the above balances are  
              unsecured, interest-free and due on demand.

              Terms of short-term entrusted loans are described in note 26 to the financial 
              statements.

        (ii)  Significant balances with Government-Related Enterprises

              At 31 December 2011, the long-term  loans (including current  portion) and
              short-term loans payable to Government-Related Enterprises included in 
              long-term loans (including current portion) and short-term loans amounted 
              to RMB129,549,155 thousand (2010: RMB121,682,226 thousand) and RMB19,644,010 
              thousand (2010: RMB16,651,488 thousand) respectively.

              The balances with Government-Related Entities also included substantially all 
              the accounts receivables of local government-related power grid companies, most 
              of the bank deposits which placed in government-related financial institutions 
              as well as accounts payables and accrued liabilities arising from the purchases 
              of coal and property, plant and equipment. These balances are unsecured, 
              interest-free and due within 12 months.

45. PRINCIPAL SUBSIDIARIES

    Particulars of the principal subsidiaries as at 31 December 2011 
    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 Datang International       PRC                     670,012     100%           -   Wind power generation
  Wind Power Development
  Company Limited

Liaoning Datang International       PRC                     117,170        -        100%   Wind power generation
  Changtu Wind Power
  Company Limited

Datang Hulunbei'er Fertilizer       PRC                     493,470        -        100%   Production and sales 
  Company Limited                                                                          of chemical materials

Datang Zhangzhou Wind Power         PRC                     217,590        -        100%   Wind power generation
  Company Limited

_________________________________________________________________________________________________________________


    (b) Subsidiaries acquired from business combination other than under common control and obtained 
        through other methods'


_________________________________________________________________________________________________________________

                                    Place of 
                                    incorporation/
                                    registration     Registered and     Percentage of
Name                                and operation   paid up capital    equity interest     Principal activities
                                                            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                     647,020     100%           -   Power generation and
  Yungang Thermal Power                                                                    heat supply
  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 and
  Tangshan Thermal Power                                                                   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    52.5%           -   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                   1,098,170      40%         24%   Hydropower generation
  Pengshui Hydropower
  Development Company Limited

Chongqing Datang International      PRC                     771,990      51%       24.5%   Hydropower generation
  Wulong Hydropower Development
  Company Limited

Datang International                Hong Kong          USD2,900,000     100%           -   Import of power related
  (Hong Kong) Limited                                                                      fuel and equipment

Qinghai Datang International        PRC                     380,000        -         90%   Hydropower generation
  Zhiganglaka Hydropower
  Development Company Limited
  ("Zhiganglaka Company")

Hebei Datang International          PRC                     450,000      70%           -   Power generation
  Wangtan Power Generation
  Company Limited

Chongqing Datang International      PRC                     143,330      70%           -   Power generation
  Shizhu Power Generation
  Company Limited

Sichuan Datang International        PRC                      50,000      80%           -   Hydropower generation
  Ganzi Hydropower Development
  Company Limited

Beijing Datang Fuel Company         PRC                     514,650      51%           -   Coal trading
  Limited

Zhejiang Datang Wushashan           PRC                   1,700,000      51%           -   Power generation
  Power Generation Company 
  Limited

Inner Mongolia Datang               PRC                   1,066,050      60%           -   Coal mining
  International Xilinhaote
  Mining Company Limited            

Inner Mongolia Datang               PRC          Registered capital:     40%           -   Power generation
  International Tuoketuo II Power                           500,000;
  Generation Company Limited                        paid-in capital:
  ("Tuoketuo II Power Company") (i)                          100,000

Hebei Datang International          PRC                     458,000     100%           -   Power generation and
  Zhangjiakou Thermal Power                                                                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                     100,000     100%           -   Power generation
  Fuzhou Power Generation
  Company Limited

Liaoning Datang International       PRC                     368,000     100%           -   Power generation and
  Jinzhou Thermal Power                                                                    heat supply
  Generation Limited

Chongqing Datang International      PRC                      93,880     100%           -   Wind power generation
  Wulongxingshun Wind
  Power Company Limited

Hebei Datang International          PRC                     329,330      84%           -   Power generation and
  Fengrun Thermal Power                                                                    heat supply
  Company Limited

Datang Energy and Chemical          PRC                   7,550,180     100%           -   Energy and chemical
  Company Limited                                                                          development

Datang Fuxin Energy and             PRC                      30,000        -        100%   Maintenance of chemical
  Chemical Engineering                                                                     power equipment,
  Company Limited                                                                          construction and
                                                                                           mechanical
                                                                                           subcontracting

Datang Energy and Chemical          PRC                      50,000        -        100%   Wholesale and retail of
  Marketing Company Limited                                                                chemical products

Datang International Chemical       PRC                      50,000        -        100%   Coal chemistry related
  Technology Research                                                                      consultation services
  Institute Company Limited

Datang Inner Mongolia Erdos         PRC                     168,000        -        100%   Silicon and aluminium
  Silicon and Aluminium                                                                    smelting
  Technology Company Limited

Datang Inner Mongolia Duolun        PRC                   4,050,000        -         60%   Coal chemical production
  Coal Chemical Company Limited

Inner Mongolia Datang International PRC                     110,000        -         26%   Production and sale of
  Renewable Energy Resource                                                                alumina
  Development Company Limited
  ("Renewable Energy Resource
  Development Company") (ii)

Inner Mongolia Datang International PRC                      28,520        -         51%   Hydropower generation
  Duolun Hydropower Multiple                                                               and water supply
  Development Company Limited

Inner Mongolia Datang Tongfang      PRC                      10,000        -         26%   Development and
  Silicon and Aluminum Technology                                                          production of silicon
  Company Limited                                                                          and aluminum alloy
  ("Tongfang Silicon and 
  Aluminum") (iii)

Liaoning Datang International       PRC                   1,235,250        -         90%   Coal-based natural gas
  Fuxin Coal-based Gas                                                                     generation
  Company Limited

Inner Mongolia Datang International PRC                   3,921,570        -         51%   Coal-based natural gas
  Keshiketeng Qi Coal-based                                                                generation
  Gas Company Limited

Inner Mongolia Datang International PRC                      60,000        -        100%   Brown coal processing
  Xilinhaote Brown Coal Integrated
  Development Company Limited

Inner Mongolia Datang               PRC                      10,000        -         90%   Hydropower generation
  International Keshiketeng                                                                and water supply
  Dashimen Hydropower

Development Company Limited         PRC                       1,300        -         80%   Sewage disposal
  Fuxin Qingyuan Sewage Disposal      
  Company Limited

Duolun County Huachuan              PRC                       7,000        -        100%   Production of plastic
  Zhuoyue Plastic Products                                                                 products
  Company Limited

Jiangsu Datang Shipping             PRC                     264,900   97.54%           -   Cargo shipping
  Company Limited

Inner Mongolia Datang               PRC                     601,740     100%           -   Wind power generation
  International Wind Power
  Development Company Limited

Fujian Datang International         PRC                     314,670     100%           -   Wind power generation
  Wind Power Development
  Company Limited

Shanxi Datang International         PRC                     282,550      80%           -   Power generation and
  Linfen Thermal Power                                                                     heat supply
  Company Limited

Liaoning Datang International       PRC                     244,950        -        100%   Wind power generation
  Fuxin Wind Power 
  Company Limited

Xizang Datang International         PRC                     100,000     100%           -   Hydropower generation
  Nujiang Upstream Hydropower
  Development Company Limited

Liaoning Datang International       PRC                      60,000     100%           -   Nuclear power generation
  Zhuanghe Nuclear Power
  Company Limited

Datang Tongzhou Technology          PRC                     165,000   60.61%           -   Sales of coal ash and
  Company Limited                                                                          integrated application 
                                                                                           of solid wastes

Beijing Tongzhou High Voltage       PRC                       2,000        -         80%   Sales of ash
  Environmental Protection
  Technology Company Limited

Zhejiang Datang Tongzhou            PRC                       5,000        -         80%   Sales of ash
  Environmental Protection
  Technology Company Limited

Tianjin Datang Tongzhou Tongxin     PRC                       5,000        -         80%   Sales of ash
  Technology Company Limited

Fujian Datang Tongzhou Yicai        PRC                       5,000        -         55%   Sales of ash and
  Environmental Protection                                                                 comprehensive
  Technology Company Limited                                                               utilisation of solid
                                                                                           emissions

Beijing Tongzhou Xinyuan            PRC                       2,000        -         70%   Sales of ash and
  Building Materials                                                                       comprehensive
  Technological Development                                                                utilisation of
  Company Limited                                                                          solid emissions

Nantong Tongzhou Datong             PRC                       1,000        -         60%   Cargo agent and
  Logistics Company Limited                                                                sales of ash

Tangshan Haigang Datang             PRC                      15,000        -         52%   Trading of construction
  Tongzhou Construction                                                                    materials
  Materials Company Limited
 
Yunnan Datang International         PRC                   1,315,352     100%           -   Power plant construction
  Electric Power Company Limited                                                           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                     728,500        -         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                      58,000        -         70%   Hydropower generation
  Hengjiang Hydropower
  Development Company Limited

Yunnan Datang International         PRC                      89,044        -         70%   Hydropower development
  Biyuhe Hydropower
  Development Company Limited

Yunnan Datang International         PRC                      57,270        -        100%   Hydropower development
  Mengyejiang Hydropower
  Development Company Limited

Yunnan Datang International         PRC         Registered capital:        -         70%   Hydropower construction
  Deqin Hydropower                                          54,591;                        and operations
  Development Company Limited                      paid-in capital:
                                                             10,100

Hebei Datang International          PRC                     624,970     100%           -   Wind power generation
  Wind Power Development
  Company Limited

Liaoning Datang International       PRC                      40,000     100%           -   Power generation and
  Wafangdian Thermal Power                                                                 heat supply
  Company Limited

Inner Mongolia Datang International PRC                      60,450     100%           -   Water conservancy
  Haibowan Water Conservancy                                                               hub construction
  Hub Development                                                                          and management
  Company Limited

Ningxia Datang International        PRC                      33,890     100%           -   Solar power generation
  Qingtongxia Photovoltaic Power
  Generation Company Limited

Inner Mongolia Datang International PRC                      60,000      51%           -   Power generation and
  Hohhot Thermal Power                                                                     heat supply Generation 
  Company Limited

Jiangxi Datang International        PRC                     583,912     100%           -   Power generation
  Xinyu Power Generation
  Company Limited

Inner Mongolia Datang               PRC                      50,000      52%           -   Coal mining
  International Zhunge'er
  Mining Company Limited

Ningxia Datang International        PRC                      40,000      45%           -   Power generation
  Daba Power Generation
  Company Limited
  ("Daba Power Company") (iv)

Hebei Datang International          PRC                      33,334      57%           -   Power generation
  Qian'an Thermal Power
  Company Limited
 
Yuneng (Group) Company              PRC                   1,663,266     100%           -   Investment holding, power
  Limited                                                                                  generation and property
                                                                                           development

Qinghai Datang International        PRC                      10,000     100%           -   Solar power generation
  Golmud Photovoltaic Power
  Generation Company Limited

Ningxia Datang International        PRC                       2,000     100%           -   Wind power generation
  Qingtongxia Wind Power
  Company Limited
 
Chengdu Liguo Energy Company        PRC                      45,211     100%           -   Hydropower generation
  Limited

Chengdu Qingjiangyuan Energy        PRC                      38,950     100%           -   Marketing planning
  Company Limited

Chengdu Zhongfu Energy              PRC                      26,297     100%           -   Hydropower generation
  Company Limited

Inner Mongolia Baoli Coal           PRC                      50,000      70%           -   Coal mining
  Company Limited

Sichuan Jinkang Electricity         PRC                     195,000        -      54.44%   Hydropower generation
  Development Company Limited
___________________________________________________________________________________________________________________

    All the above subsidiaries are limited liability companies except that Zhiganglaka Company 
    which is also a foreign investment enterprise.

    The above list contains the particulars of subsidiaries which principally affected the 
    results, assets or liabilities of the Group.



    (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.

46. EVENTS AFTER THE REPORTING PERIOD

    On 8 January 2012, the Company entered into the Zhong Rong - Qiantai Energy Equity 
    Interest Investment Single Trust Fund Agreement with Zhong Rong International Trust 
    Company Limited ("Zhong Rong Trust"), pursuant to which the Company agreed to
    contribute RMB2 billion to invest in the specific trust scheme set up by Zhong Rong 
    Trust for a term of three years. During the term of the specific trust scheme, Zhong 
    Rong Trust agreed to use such trust fund to make capital contribution to the Inner 
    Mongolia Qiantai Energy Investment Company Limited ("Project Company") under the name 
    of the trustee for the purpose of integrating the relevant coal mines within Dalate 
    Qi in Erdos City. Zhong Rong Trust will hold 50% equity interest in the Project 
    Company on behalf of the Company upon completion of the increase in capital contribution 
    by the specific trust scheme to the Project Company. Upon expiration of the term of 
    the specific trust scheme and the completion of the integration of the relevant coal 
    mines, Zhong Rong Trust will transfer 50% equity interest in the Project Company to 
    the Company. The beneficiary and trustor of the specific trust scheme is the Company. 
    The trustee is Zhong Rong Trust. The annual income to be generated from the specific
    trust scheme is expected to be RMB400 million.

47. APPROVAL OF FINANCIAL STATEMENTS

    The financial statements were approved and authorised for issue by the Board of Directors 
    on 23 March 2012.

Differences between Financial Statements

For the year ended 31 December 2011

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 Enterprises ("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

                                                     Note           2011            2010
                                                                 RMB'000         RMB'000
_____________________________________________________________________________________________

Net assets attributable to owners of the Company 
  under IFRS                                                  38,940,692      30,850,071


Impact of IFRS 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)       (102,839)       (132,530)
  Difference in accounting treatment on mining funds  (c)       (175,734)        (82,095)
  Applicable deferred tax impact of the above GAAP 
    Differences                                                      715          (3,641)
  Non-controlling interests' impact of the above GAAP 
    Differences after tax                                         18,564          (1,015)
_____________________________________________________________________________________________

Net assets attributable to owners of the Company 
  under PRC GAAP                                              38,787,864      30,737,256
_____________________________________________________________________________________________


_____________________________________________________________________________________________
                                                                       Net profits

                                                     Note           2011            2010
                                                                 RMB'000         RMB'000
_____________________________________________________________________________________________

Profit for the year attributable to owners of 
  the Company under IFRS                                       1,971,200       2,569,734

Impact of IFRS adjustments:
  Difference in accounting treatment on monetary 
    housing benefits                                  (b)         29,691          30,854
  Difference in accounting treatment on mining 
    funds                                             (c)        (86,838)       (107,273)
  Applicable deferred tax impact of the above  
    GAAP Differences                                               4,357         (12,804)
  Non-controlling interests' impact of the above  
    GAAP Differences after tax                                    (8,299)         (6,827)
_____________________________________________________________________________________________
 
Net profit for the year attributable to owners
  of the Company under PRC GAAP                                1,910,111       2,473,684
_____________________________________________________________________________________________


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.


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
(Special General Partnership)
8-9F, Block A, Corporate Square
No. 35 Finance Street
Xicheng District
Beijing
People's Republic of China

INTERNATIONAL AUDITOR

RSM Nelson Wheeler
Certified Public Accountants
29th Floor, Caroline Centre
Lee Gardens Two
28 Yun Ping Road
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: 00991

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

Hill+Knowlton Strategies Asia
36/F, PCCW Tower, Takioo Place
979 King's Road
Hong Kong


Glossary of Terms

The following terms have the following meaning in this annual report, unless 
otherwise required by the context.

"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

"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

"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

"kWh"                               A unit of power generation equivalent to the output 
                                    generated by 1,000 watts of power in one hour

"MW"                                1,000,000 watts (equivalent to 1,000 kW)

"MWh"                               A unit of power generation equivalent to the output 
                                    generated by 1,000,000 watts of power in one hour

"North China Power"                 The power transmission network covering Beijing, 
                                    Tianjin, Hebei Province, Shanxi Province and Inner 
                                    Mongolia Autonomous Region

"Total on-grid generation"          The amount of power transmitted to a power network 
                                    from a power plant as measured by the grid meter

"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