Provision for Asset Impairment

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. DATANG INTERNATIONAL POWER GENERATION CO. LTD (a sino-foreign joint stock limited company incorporated in the People's Republic of China) (Stock Code: 00991) PROVISION FOR ASSET IMPAIRMENT This announcement is made by Datang International Power Generation Co., Ltd. (the "Company") pursuant to provisions on Inside Information Provisions (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong) and Rules 13.09(2)a and 13.10B of the Listing Rules. The following announcement is made by the board of directors (the "Board") of the Company in respect of provision for asset impairment. I. SUMMARY OF PROVISION FOR IMPAIRMENT (1) Reason for provision for impairment Pursuant to the requirement under the "Notice about the Execution of Closedown of Coal-fired Power Generation Units in Beijing by Beijing Municipal Commission of Development and Reform", Datang International Power Generation Co., Ltd. Beijing Gao Jing Thermal Power Plant (the "Gao Jing Thermal Power Plant"), an enterprise owned by the Company, will shut down all of its coal-fired power generation units by 2014, and indicators of impairment of its assets are shown. (2) Basis of determining the provision for impairment Pursuant to the requirements of the PRC Accounting Standard, when assets of an enterprise indicate that "they have or will become idle, their usage has been terminated or they are disposed of ahead of planning", provision for impairment of such corresponding asset groups should be made. As a result, the Company conducted an impairment assessment on the corresponding asset groups of the coal-fired power generation units of Gao Jing Thermal Power Plant, which shows indicators of impairment. The time of the assessment was 31 October 2013, and the assessment result shows that a provision for impairment of approximately RMB646 million on the corresponding asset groups of the coal-fired power generation units of Gao Jing Thermal Power Plant should be made. II. IMPACT OF THE PROVISION FOR IMPAIRMENT ON THE FINANCIAL POSITION OF THE COMPANY The Company contemplates to make provision for impairment on the corresponding asset groups of the coal-fired power generation units of Gao Jing Thermal Power Plant in the amount of not more than RMB646 million before the end of 2013 (the exact amount is subject to assessment result by then), and the net profit attributable to equity holders of the Company in the consolidated financial statements of the Company for the year 2013 is expected to decrease by not more than RMB646 million. III. PROCEDURES FOR CONSIDERATION AND APPROVAL OF THE PROVISION FOR IMPAIRMENT The Company convened the fifth meeting of the eighth session of the Board, which considered and approved the "Resolution of Provisions for Impairment of Gao Jing Coal-fired Power Generation Units" on 6 December 2013. The Board is of the view that according to the PRC Accounting Standard, the provision for asset impairment is conducted basing on a prudent approach, is well-founded, and fairly reflects the condition of the Company's assets, and therefore approved the provision for the impairment. IV. OTHERS In order to meet the load demand from the power grids in Beijing and the demand for heating in the Beijing area, the Company convened the twenty-fifth meeting of the seventh session of the Board on 6 June 2012 and considered and approved the "Resolution on Investment in Constructing the Beijing Gao Jing Gas Thermal Power Project", approving the investment in the construction of the Beijing Gao Jing Gas Thermal Power Project. The Beijing Gao Jing Gas Thermal Power Plant project is located at the western side of the Company's Beijing Gao Jing Thermal Power Plant, with a construction scale of three 9F-grade gas-steam combined cycle back-pressure heating generating units with a total installed capacity of 1,380 MW. It was expected that the project would commence production in succession by the end of 2014. After commencing production, the project would help optimise the Company's power sources structure, consolidate its development status in the Beijing area and strengthen its profit base. By Order of the Board Zhou Gang Secretary to the Board Beijing, the PRC, 6 December 2013 As at the date of this announcement, the Directors of the Company are: Chen Jinhang, Hu Shengmu, Cao Jingshan, Fang Qinghai, Zhou Gang, Li Gengsheng, Cao Xin, Cai Shuwen, Liu Haixia, Guan Tiangang, Dong Heyi*, Ye Yansheng*, Li Hengyuan*, Zhao Jie*, Jiang Guohua* * Independent non-executive Directors
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