Third Quarterly Report of 2011

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) PRICE-SENSITIVE INFORMATION/ OVERSEAS REGULATORY ANNOUNCEMENT THIRD QUARTERLY REPORT OF 2011 In accordance with the requirements of the China Securities Regulatory Commission, Datang International Power Generation Co., Ltd. (the "Company") is required to publish quarterly reports for the first and third quarters of the year. The financial information contained in this quarterly report is unaudited, and was prepared in accordance with the China Accounting Standards for Business Enterprises ("PRC GAAP"). This announcement is made pursuant to Rules 13.09(1) and (2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. 1. IMPORTANT NOTICE 1.1 The board of directors (the "Board"), the supervisory committee, the directors, the supervisors and senior management members of the Company warrant that there are no false representations and misleading statements contained in, or material omissions from, this report, and severally and jointly accept the responsibility for the truthfulness, accuracy and completeness of the content hereof. 1.2 Any directors who failed to attend the Board meeting should be disclosed separately. Name of director Post of director Explanation of Name of proxy not attending not attending director not attending Li Gengsheng Director Business engagement Ye Yonghui Guan Tiangang Director Business engagement Liu Haixia Su Tiegang Director Business engagement Ye Yonghui Zhao Zunlian Independent Business engagement Li Yanmeng director 1.3 The third quarterly financial report of the Company is unaudited. 1.4 Mr. Liu Shunda, the person-in-charge of the Company and Mr. Wang Xianzhou, the person-in-charge of accounting operations and of the accounting department (head of the accounting function), hereby make representation in respect of the truthfulness and completeness of the financial statements contained in this quarterly report. 2. BASIC INFORMATION OF THE COMPANY 2.1 Major accounting data and financial indicators Currency: RMB At the end of At the end of the Increase/decrease the reporting previous year at the end of the period reporting period as compared to the end of the previous year (%) Total assets (RMB'000) 235,161,473 210,755,870 11.58 Interests of equity holders (or Interests of shareholders) 39,032,218 30,737,256 26.99 (RMB'000) Beginning of the year Increase/decrease to the end of as compared to the the reporting period corresponding (Jan - Sep) period of the previous year (%) Net cash flows generated from operating activities (RMB'000) 9,987,837.00 -6.44 Net cash flows per share generated from operating activities (RMB/share) 0.7831 -9.70 The reporting Beginning of the Increase/decrease of period year to the end the reporting (Jul - Sep) of the reporting period as period compared to the (Jan - Sep) corresponding period of the previous year (%) Net profit attributable to shareholders of the Company (RMB'000) 354,710 1,208,842 -53.74 Basic earnings per share (RMB/per share) 0.0266 0.0948 -57.30 Basic earnings per share excluding non-recurring profit/loss (RMB/per share) 0.0205 0.0841 -63.39 Diluted earnings per share (RMB/per share) 0.0266 0.0948 -57.30 Weighted a decrease of average 1.68 percentage return on net 0.92 3.52 points assets (%) Weighted average return on net assets excluding a decrease of non-recurring 1.63 percentage profit/loss (%) 0.71 3.13 points Excluding non-recurring profit/loss items and amounts: RMB'000 Item Amount from the Explanation beginning of the year to the end of the reporting period (Jan-Sep) Gains and losses -8,751 Gain from disposal from disposal of of non-current assets non-current assets Government's grants 123,609 Government's grants accounted for in the for the reporting profit and loss period account for the reporting period (except for the grants that are closely related to the Company's ordinary course of business; and that are continuously enjoyed in compliance with the State's policies and regulations in an amount or quantity specified by certain standards) Profit/loss from 25 Profit gained from liabilities restructuring of restructuring liabilities Profit/loss gained 4,480 Profit gained from from loans entrusted loans entrusted to to external entities associates (joint ventures) Other non-operating 18,343 Net amount of other income and expenses non-operating excluding the income and expenses above-mentioned items Other profit/loss 58,239 Gain from disposal items conforming of long-term with the definition investment in of non-recurring equity profit or loss Impact of income tax -30,423 Impact of above items on income tax expenses Effects of minority -28,967 Impact of above shareholders' items on minority interests (after shareholders' tax) interests Total 136,555 2.2 Total number of shareholders as at the end of the reporting period and tabl e of shareholding of the top ten holders of shares free from selling restrictions Unit: share Total number of shareholders at the end of the reporting period 226,007 Shareholdingo fthe topten holderso fcirculating sharesfre efromselling restrictions Name of shareholder Number of Type of shares (Full name) circulating shares held not subject to selling restrictions as at the end of the reporting period China Datang 4,038,977,414 RMB-denominated ordinary share Corporation 4,038,977,414 HKSCC Nominees 3,262,369,081 Overseas-listed foreign shares Limited 3,262,369,081 Hebei Construction 1,281,872,927 RMB-denominated ordinary share & Investment Group 1,281,872,927 Co., Ltd Beijing Energy 1,260,988,672 RMB-denominated ordinary share Investment 1,260,988,672 (Group) Company Limited Tianjin Jinneng 1,197,012,600 RMB-denominated ordinary share Investment 1,197,012,600 Company Zhongrong Hui 160,000,000 RMB-denominated ordinary share Investment 160,000,000 Guarantee Co., Ltd. China Dongfang 139,960,000 RMB-denominated ordinary share Electric 139,960,000 Group Co., Ltd. Aerospace Science & 69,097,023 RMB-denominated ordinary share Technology Finance 69,097,023 Co., Ltd CCCC Investment 59,900,000 RMB-denominated ordinary share Co., Ltd. 59,900,000 Account No.1 of the 33,000,000 RMB-denominated ordinary share National Council 33,000,000 for Social Security Fund CDC Overseas Investment Co., Ltd., China Datang Corporation's wholly-owned subsidiary, holds 480,680,000 H shares of the Company as at the end of the reporting period, representing approximately 3.61% of the Company's total share capital, which are included in the shareholding of HKSCC Nominees Limited. Hence China Datang Corporation and its subsidiary hold a total of 4,619,657,414 issued shares of the Company, representing approximately 34.71% of the Company's total issued shares as at the end of the reporting period. 3. SIGNIFICANT MATTERS 3.1 The details of and the reasons for the material changes in the major financial statement items and financial indicators of the Company / Applicable 0 Not applicable (1) Cash balance of the Company and its subsidiaries as at the end of the reporting period increased by approximately 202% over the beginning of the reporting period. This was mainly because of the non-public issue of A shares, the public issue of corporate bonds and an increase in borrowings. (2) Prepayments of the Company and its subsidiaries as at the end of the reporting period increased by approximately 308% over the beginning of the reporting period. This was mainly because of increases in prepayments for fuel coal made by the Company's coal-fired power plants and Beijing Datang Fuel Co., Ltd. (3) Inventories of the Company and its subsidiaries as at the end of the reporting period increased by approximately 32% over the beginning of the reporting period. This was mainly because of increases in coal inventories of the Company's coal-fired power plants and Beijing Datang Fuel Co., Ltd. (4) Taxes payable of the Company and its subsidiaries as at the end of the reporting period decreased by approximately 146% over the beginning of the reporting period. This was mainly because of increases in input value-added taxes not yet deducted from the Company's subsidiaries. (5) Debentures payable of the Company as at the end of the reporting period increased by approximately 50% over the beginning of the reporting period. This was mainly because the Company has publicly issued corporate bonds of RMB3 billion during the reporting period. (6) Long-term payables of the Company and its subsidiaries as at the end of the reporting period increased by approximately 58% over the beginning of the reporting period. This was mainly because of the growth in the financial leasing business of the Company's subsidiaries. (7) Capital reserve of the Company and its subsidiaries as at the end of the reporting period increased by approximately 148% over the beginning of the reporting period. This was mainly because of the capital premium arisen from the Company's issue of shares. (8) Undistributed profits of the Company and its subsidiaries as at the end of the reporting period increased by approximately 45% over the beginning of the reporting period. This was mainly because of the profit realised for the nine months ended 30 September 2011. (9) Business tax and surcharges of the Company and its subsidiaries for the nine months ended 30 September 2011 increased by approximately 37% over the corresponding period of the previous year. This was mainly because of an increase in tax as a result of an increase in operating revenues during the reporting period. (10) Financial expenses of the Company and its subsidiaries for the nine months ended 30 September 2011 increased by approximately 30% over the corresponding period of the previous year. This was mainly because of an increase in interest expenses as a result of an increase in borrowings of the Company and its subsidiaries. (11) Investment income of the Company and its subsidiaries for the nine months ended 30 September 2011 increased by approximately 64% over the corresponding period of the previous year. This was mainly because the invested entities recorded growth in results performance, resulting in an increase in investment income as recognised in accordance with the equity method. (12) Other comprehensive income of the Company and its subsidiaries for the nine months ended 30 September 2011 decreased by approximately 326% over the corresponding period of the previous year. This was mainly because of decreases in other comprehensive incomes at the Company's invested entities during the reporting period. (13) Net cash flows generated from investing activities of the Company and its subsidiaries for the nine months ended 30 September 2011 decreased by approximately 39% over the corresponding period of the previous year. This was mainly because of an increase in capital expenditure during the reporting period. (14) Net cash flows generated from financing activities of the Company and its subsidiaries for the nine months ended 30 September 2011 increased by approximately 290% over the corresponding period of the previous year. This was mainly because of an increase in cash inflow as a result of the non-public issue of A shares and the public issue of corporate bonds. 3.2 The analysis and explanation of progress and impact of major events and solutions 0 Applicable / Not applicable 3.3 The performance of the undertakings made by the Company, shareholders and the de facto controller 0 Applicable / Not applicable 3.4 The warning and explanation in the forecast of the possible aggregate net profits from the beginning of the year to the end of the next reporting period becoming a loss or significant changes over the corresponding period of the previous year 0 Applicable / Not applicable 3.5 Status of the implementation of the cash dividend policy during the reporting period On 26 August 2011, the 2011 Second Extraordinary General Meeting of the Company considered and approved the dividend distribution plan for 2010 of the Company. Based on the total share capital of 13,310,037,578 shares as at 30 May 2011, the Company will distribute 2010 cash dividends of RMB0.07 per share (tax inclusive) to all shareholders. The relevant dividend distribution plan will be completed before 26 October 2011. By Order of the Board Zhou Gang Secretary to the Board Beijing, the PRC, 25 October 2011 As at the date of this announcement, the directors of the Company are: Liu Shunda, Hu Shengmu, Cao Jingshan, Fang Qinghai, Zhou Gang, Liu Haixia, Guan Tiangang, Su Tiegang, Ye Yonghui, Li Gengsheng, Li Yanmeng*, Zhao Zunlian*, Li Hengyuan*, Zhao Jie*, Jiang Guohua* * Independent non-executive directors 4 APPENDIX 4.1 Datang International Power Generation Co., Ltd. Consolidated and the Company Balance Sheet as at 30 September 2011 (unaudited) (Amounts expressed in thousands of Renminbi unless otherwise stated) Assets 30 September 31 December 30 September 31 December 2011 2010 2011 2010 Consolidated Consolidated The Company The Company Current assets Cash balance 10,382,610 3,442,976 4,804,317 2,145,796 Notes receivable 319,499 190,185 100 - Accounts receivable 7,666,029 7,968,437 1,078,106 1,047,934 Prepayments 2,989,662 732,711 39,558 64,961 Dividends receivable - - 347,855 51,906 Other receivables 1,866,144 1,430,769 4,092,006 2,891,606 Inventories 5,293,297 4,011,713 370,312 350,202 Other current assets 122,423 92,223 - - Total current assets 28,639,664 17,869,014 10,732,254 6,552,405 Non-current assets Available-for-sale 82,396 91,043 - - financial assets Long-term receivables 114,029 122,085 8,475,397 6,086,841 Long-term equity 10,461,580 9,372,636 35,105,208 29,870,872 investments Investment properties 239,775 211,866 - - Fixed assets 122,603,763 120,206,915 7,219,202 7,670,850 Construction-in-progress 58,063,667 49,643,216 2,803,313 2,030,300 Construction materials 8,441,344 7,446,226 - - Disposal of fixed assets 1,320 147 - - Intangible assets 3,931,206 3,918,803 530,137 534,383 Goodwill 696,952 570,515 33,561 33,561 Long-term deferred 294,055 297,487 4,125 12,042 expenses Deferred income tax 1,317,711 944,269 167,119 66,096 assets Other non-current assets 274,011 61,648 - - Total non-current assets 206,521,809 192,886,856 54,338,062 46,304,945 Total assets 235,161,473 210,755,870 65,070,316 52,857,350 Datang International Power Generation Co., Ltd. Consolidated and the Company Balance Sheet as at 30 September 2011 (unaudited) (Amounts expressed in thousands of Renminbi unless otherwise stated) Liabilities 30 September 31 December 30 September 31 December and shareholders' 2011 2010 2011 2010 equity Consolidated Consolidated The Company The Company Current liabilities Short-term 17,617,729 19,374,828 - 880,000 loans Notes payable 1,569,056 980,127 - - Accounts 15,817,837 15,480,360 849,122 1,272,843 payable Advances from 1,174,300 622,516 - 2,500 customers Salary 72,058 51,444 5,132 8,574 payable Taxes payable -2,110,334 -857,120 -6,976 154,329 Interest 388,938 390,087 184,150 180,439 payable Dividends 701,810 2,336 - - payable Other 1,807,184 1,405,532 373,874 227,150 payables Non-current 12,511,857 14,810,183 3,533,400 463,400 liabilities due within one year Total current 49,550,435 52,260,293 4,938,702 3,189,235 liabilities Non-current liabilities Long-term 121,521,464 109,585,377 10,838,000 12,135,200 loans Debentures 8,934,013 5,949,018 8,934,013 5,949,018 payable Long-term 5,881,636 3,722,782 9,000 18,000 payable Specific 400 400 - - payable Accrued 41,603 41,603 - - liabilities Deferred 584,590 414,377 - - income tax liabilities Other 466,195 460,989 299,826 316,317 non-current liabilities Total 137,429,901 120,174,546 20,080,839 18,418,535 non-current liabilities Total 186,980,336 172,434,839 25,019,541 21,607,770 liabilities Shareholders' equity Share capital 13,310,038 12,310,038 13,310,038 12,310,038 Capital 10,059,340 4,056,119 9,927,842 4,321,900 surplus Specific 554,958 491,856 478,424 450,948 reserve Surplus 11,145,646 11,145,646 11,183,080 11,183,080 reserve Undistributed 3,907,138 2,698,296 5,151,391 2,983,614 profits Foreign 55,098 35,301 - - currency conversion differences Total equity 39,032,218 30,737,256 40,050,775 31,249,580 attributable to equity holders of the Company Minority 9,148,919 7,583,775 - - interests Total 48,181,137 38,321,031 40,050,775 31,249,580 shareholders' equity Total 235,161,473 210,755,870 65,070,316 52,857,350 liabilities and shareholders' equity Person-in-charge of the Company: Mr. Liu Shunda Person-in-charge of accounting matters: Mr. Wang Xianzhou Person-in-charge of the accounting institution: Mr. Wang Xianzhou 4.2 Datang International Power Generation Co., Ltd. Consolidated Profit and Loss Account for the nine months ended 30 September 2011 (unaudited) (Amounts expressed in thousands of Renminbi unless otherwise stated) Item Amounts for Amounts for Amounts for Amounts for the the the period the period reporting corresponding from the from the period period of the beginning of beginning of (Jul - Sep) previous year the year to the previous (Jul - Sep) the end of year to the the end of the reporting corresponding period period of the (Jan - Sep) previous year (Jan - Sep) 1. Operating 18,438,030 15,002,503 51,759,594 43,948,509 revenue Less: Operating 15,643,323 11,859,008 43,449,421 35,967,838 cost Business tax and 101,857 98,824 340,802 248,732 surcharges Selling expenses 186,127 96,150 363,284 303,705 General and 438,455 389,712 1,229,899 1,084,604 administrative expenses Financial 1,825,679 1,370,729 5,083,419 3,909,678 expenses - net Impairment loss - -5,009 -56 -6,152 of assets Add: Investment 378,197 134,741 739,458 451,504 income Including: 318,309 111,478 660,994 405,953 Investment income from associates and jointly controlled entities 2. Operating 620,786 1,327,830 2,032,283 2,891,608 profit Add: 38,151 59,221 176,536 154,421 Non-operating income Less: 990 6,828 20,185 10,004 Non-operating expenses 3. Total profit 657,947 1,380,223 2,188,634 3,036,025 Less: Income tax 130,534 217,728 410,336 523,116 4. Net profit 527,413 1,162,495 1,778,298 2,512,909 Net profit 354,710 766,718 1,208,842 1,596,464 attributable to equity holders of the Company Minority 172,703 395,777 569,456 916,445 interests 5. Earnings per share Basic earnings 0.0266 0.0623 0.0948 0.1316 per share Diluted earnings 0.0266 0.0623 0.0948 0.1316 per share 6. Other -2,085 5,293 -51,602 -12,103 comprehensive income 7. Total 525,328 1,167,788 1,726,696 2,500,806 comprehensive income Total 352,578 772,011 1,157,126 1,586,552 comprehensive income attributable to equity holders of the Company Total 172,750 395,777 569,570 914,254 comprehensive income attributable to minority shareholders Person-in-charge of the Company: Mr. Liu Shunda Person-in-charge of accounting matters: Mr. Wang Xianzhou Person-in-charge of the accounting institution: Mr. Wang Xianzhou Datang International Power Generation Co., Ltd. Profit and Loss Account of the Company for the nine months ended 30 September 2011 (unaudited) (Amounts expressed in thousands of Renminbi unless otherwise stated) Item Amounts Amounts for Amounts for Amounts for the the period the period for the corresponding from the from the reporting period of the beginning of beginning of period previous year the year to the previous (Jul - Sep) (Jul - Sep) the end of year to the the end of the reporting corresponding period period of the (Jan - Sep) previous year (Jan - Sep) 1. Operating 2,467,008 2,021,666 7,022,898 6,370,952 revenue Less: Operating 2,398,260 1,814,588 6,631,175 5,767,319 cost Business tax and 15,577 17,357 57,422 31,639 surcharges General and 119,316 107,543 346,067 313,433 administrative expenses Financial 253,604 178,694 727,143 458,219 expenses - net Add: Investment 518,811 358,564 2,804,512 1,933,072 income Including: 318,309 111,478 660,994 405,953 Investment income from associates and jointly controlled entities 2. Operating 199,062 262,048 2,065,603 1,733,414 profit Add: 6,367 9,115 20,547 45,842 Non-operating income Less: 363 3,642 12,464 4,662 Non-operating expenses 3. Total profit 205,066 267,521 2,073,686 1,774,594 Less: Income tax -57,262 10,434 -94,091 31,001 4. Net profit 262,328 257,087 2,167,777 1,743,593 Net profit 262,328 257,087 2,167,777 1,743,593 attributable to equity holders of the Company Minority interests / / / / 5. Earnings per share / / / / Basic earnings per share / / / / Diluted earnings / / / / per share 6. Other -2,685 - -65,008 -7,745 comprehensive income 7. Total 259,643 257,087 2,102,769 1,735,848 comprehensive income Total 259,643 257,087 2,102,769 1,735,848 comprehensive income attributable to equity holders of the Company Total / / / / comprehensive income attributable to minority shareholders Person-in-charge of the Company: Mr. Liu Shunda Person-in-charge of accounting matters: Mr. Wang Xianzhou Person-in-charge of the accounting institution: Mr. Wang Xianzhou 4.3 Datang International Power Generation Co., Ltd. Consolidated and the Company Cash Flow Statement for the nine months ended 30 September 2011 (unaudited) (Amounts expressed in thousands of Renminbi unless otherwise stated) Item For the nine months ended 30 September 2011 2010 2011 2010 Consolidated Consolidated The Company The Company 1. Cash flows generated from operating activities Cash received 60,385,258 47,337,318 8,124,654 7,750,339 from sales of goods and services rendered Refund of taxes 59,046 7,506 - - and levies Other cash 836,502 149,786 240,007 228,687 received relating to operating activities Sub-total of cash 61,280,806 47,494,610 8,364,661 7,979,026 inflows Cash paid for 43,338,613 31,251,083 6,724,720 5,180,640 goods and services received Cash paid to and 1,505,632 1,354,900 614,483 608,277 on behalf of employees Payments of all 4,386,145 3,193,541 598,745 409,523 types of taxes Other cash paid 2,062,579 1,020,280 509,210 398,739 relating to operating activities Sub-total of cash 51,292,969 36,819,804 8,447,158 6,597,179 outflows Net cash flows 9,987,837 10,674,806 -82,497 1,381,847 generated from operating activities 2. Cash flows generated from investing activities Cash received on 569,074 1,268,553 2,493,003 1,845,530 disposals of investment Cash received on 729,519 329,248 2,165,501 1,734,308 investment income Net cash received 5,052 133,107 - - from disposals of fixed assets, intangible assets and other long-term assets Other cash 549,492 3,089,078 221,714 5,726,639 received relating to investing activities Sub-total of cash 1,853,137 4,819,986 4,880,218 9,306,477 inflows Cash paid to 14,338,799 13,757,418 607,732 548,181 acquire fixed assets, intangible assets and other long-term assets Cash paid to 3,220,263 2,740,174 10,283,219 10,961,366 acquire investments Other cash paid 819,447 175,172 1,074,887 282,129 relating to investing activities Sub-total of cash 18,378,509 16,672,764 11,965,838 11,791,676 outflows Net cash flow -16,525,372 -11,852,778 -7,085,620 -2,485,199 generated from investing activities Datang International Power Generation Co., Ltd. Consolidated and the Company Cash Flow Statement for the nine months ended 30 September 2011 (unaudited) (Amounts expressed in thousands of Renminbi unless otherwise stated) 3. Cash flows generated from financing activities Cash received from 8,790,169 3,967,364 6,670,950 3,341,763 investment Including: Cash 1,411,303 633,257 - - received from minority shareholders' equity investments in subsidiaries Cash received from 53,075,108 58,989,239 5,700,000 6,300,000 borrowings Cash received from 2,976,000 - 2,976,000 - the issue of debentures Other cash received 2,060,930 37,630 28,454 403,626 relating to financing activities Sub-total of cash 66,902,207 62,994,233 15,375,404 10,045,389 inflows Cash paid on 45,802,556 51,416,526 4,807,200 6,497,200 repayments of borrowings Cash paid for 7,259,281 7,075,619 697,354 1,333,461 dividends, profit appropriation or interest expenses Including: 205,954 287,206 - - Dividends paid to minority shareholders by subsidiaries Other cash paid 347,295 1,040,612 35,570 159,843 relating to financing activities Sub-total of cash 53,409,132 59,532,757 5,540,124 7,990,504 outflows Net cash flows 13,493,075 3,461,476 9,835,280 2,054,885 generated from financing activities 4. Effect of -15,906 -2,894 -8,642 -3,181 foreign exchange rate changes on cash and cash equivalents 5. Net increase 6,939,634 2,280,610 2,658,521 948,352 (decrease)in cash and cash equivalents Add: balance of 3,442,976 1,506,435 2,145,796 291,589 cash and cash equivalents at the beginning of the reporting period 6. Balance of cash 10,382,610 3,787,045 4,804,317 1,239,941 and cash equivalents at the end of the reporting period Person-in-charge of the Company: Mr. Liu Shunda Person-in-charge of accounting matters: Mr. Wang Xianzhou Person-in-charge of the accounting institution: Mr. Wang Xianzhou

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