2009 Interim report
Furthering Diversifications,
Pursuing Synergy.
Committed to its diversification development strategy throughout the years, Datang Power has witnessed its generation structure evolving from single-mode thermal generation into a strategically balanced deployment of thermal power, hydropower, wind power and nuclear power. Its business structure has also extended from a pure power generation operation to a chain of upstream and downstream businesses related to power generation.
In the future, based on various successful initiatives in its diversification strategy, Datang Power will further the development of its generation structure and business structure. It will continue to enhance its coal-fired power; aggressively expand its hydropower; continuously develop wind power; actively pursuing nuclear power; prudently proceed with coal-to-chemical projects; focus on suitable coal operations; and secure a complementary development of railway, port, and shipping.
Through furthering its diversifications, Datang Power marches towards all-encompassing synergistic developments, endeavouring to develop into an integrated energy company that enjoys a domestic leadership position and international reputation.
Contents
Company Results 2
Management Discussion and Analysis 3
Share Capital and Dividends 11
Significant Events 13
Purchase, Sale and Redemption of the Company's Listed Securities 14
Compliance with the Code on Corporate Governance Practices 15
Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers 16
Audit Committee 17
Condensed Consolidated Interim Balance Sheet (Unaudited) 18
Condensed Consolidated Interim Statement of Comprehensive Income (Unaudited) 20
Condensed Consolidated Interim Statement of Changes in Equity (Unaudited) 21
Condensed Consolidated Interim Cash Flow Statement (Unaudited) 23
Notes to the Condensed Consolidated Interim Financial Information (Unaudited) 24
Supplemental Information (Unaudited) 58
Company Results
|
OPERATING AND FINANCIAL HIGHLIGHTS ● Operating revenue amounted to approximately RMB20,684 million, representing an increase of 18.90% over the first half year of 2008. ● Net profit attributable to equity holders of the Company amounted to approximately RMB722 million, representing an increase of 53.04% over the first half year of 2008. ● Basic earnings per share attributable to equity holders of the Company amounted to approximately RMB0.0613, representing an increase of approximately RMB0.0211 per share over the first half year of 2008. |
The board of directors (the 'Board') of Datang International Power Generation Co., Ltd. (the 'Company') hereby announces the unaudited consolidated operating results of the Company and its subsidiaries (the 'Group') prepared in conformity with the International Financial Reporting Standards ('IFRS') for the six-months ended 30 June 2009 (the 'Period'), together with the unaudited consolidated operating results of the first half of 2008 (the 'Corresponding Period Last Year') for comparison. Such operating results have been reviewed and confirmed by the Company's audit committee (the 'Audit Committee').
Operating revenue of the Group for the Period was approximately RMB20,684 million, representing an increase of approximately 18.90% as compared to the Corresponding Period Last Year.
Net profit attributable to equity holders of the Company was approximately RMB722 million, representing an increase of approximately 53.04% as compared to the Corresponding Period Last Year. Basic earnings per share attributable to equity holders of the Company amounted to approximately RMB0.0613, representing an increase of approximately RMB0.0211 per share as compared to the Corresponding Period Last Year.
The Board does not recommend any payment of interim dividend for 2009.
Please refer to the unaudited financial information for details of the consolidated operating results of the Group.
Management Discussion and Analysis
The Group is one of the largest independent power generation companies in the People's Republic of China (the 'PRC'), which is primarily engaged in power generation businesses with its main focus on coal-fired power generation. As at 30 June 2009, the Group managed a total installed capacity of 27,790.2MW. The power generation businesses of the Group are primarily distributed in the North China Power Grid, the Gansu Power Grid, the Zhejiang Power Grid, the Yunnan Power Grid, the Fujian Power Grid, the Guangdong Power Grid, the Chongqing Power Grid, the Qinghai Power Grid, the Jiangxi Power Grid and the Liaoning Power Grid.
During the Period, the Group continued the implementation of the development strategy of 'pursuing the power generation business as its core development whilst complementing with synergistic diversifications', and pushed forward power-related upstream and downstream projects such as coal mining, coal chemical, railway construction and shipping at a steady pace in accordance with plans.
During the Period, impacted by the global financial crisis, the PRC's economy was faced with tough challenges, realising a growth of approximately 7.1% Gross Domestic Product (GDP) which represented a decrease of approximately 3.3 percentage-points as compared to the Corresponding Period Last Year. Although power demand saw a rebound in May and June this year, power consumption during the Period saw a decline as compared to the Corresponding Period Last Year and utilisation hours of power generation facilities were lower than that in the Corresponding Period Last Year. These factors have affected the profitability of power companies. During the Period, the consolidated average on-grid tariff of the Group saw an increase over the Corresponding Period Last Year, and the Group, with reference to the changes in the market environment, took initiatives in planning budgets, implemented measures to expand income sources and reduce expenditure, as well as ensuring steady, safe and orderly production and operation management. As a result, the Group achieved a significant growth in profit as compared to the Corresponding Period Last Year.
Management's review on the operating results of various businesses
(Financial data are presented according to the PRC Accounting Standards. For segment information, please refer to note 14 to the unaudited condensed consolidated interim financial information attached.)
Power generation businesses
1. Business review
(1) Maintained stable power production
During the Period, the operational generating units of the Group maintained safe and stable operation. No casualties or incidents regarding the production facilities occurred to the Group during the course of power production. The equivalent availability factor of operational generating units amounted to 93.41%, maintaining at relatively high levels.
During the Period, total power generation of the Group amounted to approximately 61.3117 billion kWh, representing a decrease of approximately 1.51% as compared to the Corresponding Period Last Year. Total on-grid power generation of the Group amounted to approximately 57.7371 billion kWh, representing a decrease of approximately 1.47% over the Corresponding Period Last Year. The slight decreases in total power generation and on-grid power generation year-on-year were mainly attributable to a considerable decrease in utilisation hours of the Group's power generation facilities as compared to the Corresponding Period Last Year, primarily due to the impact of the PRC's macro-economy.
Details of the power generation of the Group during the Period (Unit: billion kWh):
|
Power generation for |
Growth |
|
|
|
No. |
Power plant/company |
the first half year of 2009 |
(%) |
|
|
|
|
|
|
1 |
Gao Jing Thermal Power Plant |
1.3539 |
-22.78% |
|
2 |
Dou He Power Plant |
3.5957 |
-33.91% |
|
3 |
Xia Hua Yuan Power Plant |
0.6924 |
-2.36% |
|
4 |
Zhang Jia Kou Power Plant |
6.2422 |
-16.88% |
|
5 |
Tianjin Datang International Panshan Power Generation Company Limited |
|
|
|
|
('Panshan Power Company') |
3.1572 |
-9.53% |
|
6 |
Inner Mongolia Datang International Tuoketuo Power Generation Company Limited |
|
|
|
|
('Tuoketuo Power Company') |
8.8999 |
-9.87% |
|
7 |
Shanxi Datang International Yungang Thermal Power Company Limited |
|
|
|
|
('Yungang Thermal Power Company') |
2.1242 |
44.38% |
|
8 |
Hebei Datang International Tangshan Thermal Power Company Limited |
|
|
|
|
('Tangshan Thermal Power Company') |
1.9276 |
-16.71% |
|
9 |
Shanxi Datang International Shentou Power Generation Company Limited |
|
|
|
|
('Shentou Power Company') |
2.3104 |
-27.56% |
|
10 |
Gansu Datang International Liancheng Power Generation Company Limited |
|
|
|
|
('Liancheng Power Company') |
1.4367 |
-33.34% |
|
11 |
Hebei Datang International Wangtan Power Generation Company Limited |
|
|
|
|
('Wangtan Power Company') |
3.2426 |
-12.89% |
|
12 |
Zhejiang Datang International Wushashan Power Generation Company Limited |
|
|
|
|
('Wushashan Power Company') |
5.9703 |
-5.53% |
|
13 |
Guangdong Datang International Chaozhou Power Generation Company Limited |
|
|
|
|
('Chaozhou Power Company') |
3.3272 |
-4.60% |
|
14 |
Fujian Datang International Ningde Power Generation Company Limited ('Ningde Power Company') |
3.4914 |
-0.40% |
|
15 |
Yunnan Datang International Honghe Power Generation Company Limited ('Honghe Power Company') |
1.5756 |
-24.53% |
|
16 |
Jiangxi Datang International Xinyu Power Generation Company Limited ('Xinyu Power Company') |
0.8181 |
-6.34% |
|
17 |
Shanxi Datang International Yuncheng Power Generation Company Limited ('Yuncheng Power Company') |
2.9647 |
34.45% |
|
18 |
Inner Mongolia Datang International Hohhot Thermal Power Generation Company Limited |
|
|
|
|
('Hohhot Thermal Power Company') |
0.4586 |
119.22% |
|
19 |
Chongqing Datang International Pengshui Hydropower Development Company Limited |
|
|
|
|
('Pengshui Hydropower Company') |
2.6167 |
157.09% |
|
20 |
Yunnan Datang International Nalan Hydropower Development Company Limited |
|
|
|
|
('Nalan Hydropower Company') |
0.2045 |
18.48% |
|
21 |
Yunnan Datang International Lixianjiang Hydropower Development Company Limited |
|
|
|
|
('Lixianjiang Hydropower Company') |
1.2857 |
181.27% |
|
22 |
Inner Mongolia Datang International Duolun Hydropower Multiple Development Company Limited |
|
|
|
|
('Duolun Hydropower Company') |
0.0041 |
27.49% |
|
23 |
Qinghai Datang International Zhiganglaka Hydropower Generation Development Company Limited |
|
|
|
|
('Zhiganglaka Hydropower Company') |
0.3570 |
58.10% |
|
24 |
Hebei Datang International Huaze Hydropower Development Company Limited |
|
|
|
|
('Huaze Hydropower Company') |
0.0090 |
2.27% |
|
25 |
Inner Mongolia Datang International Zhuozi Windpower Company Limited |
|
|
|
|
('Zhuozi Windpower Company') |
0.0549 |
12.50% |
|
26 |
Inner Mongolia Datang International Tuoketuo No. 2 Power Generation Company Limited |
|
|
|
|
('Tuoketuo No. 2 Power Company') |
2.9386 |
Not Applicable |
|
27 |
Liaoning Datang International Jinzhou Thermal Power Generation Company Limited |
|
|
|
|
('Jinzhou Thermal Power Company') |
0.1967 |
Not Applicable |
|
28 |
Shandong Datang International Dongying Wind Power Generation Company Limited |
|
|
|
|
('Dongying Windpower Company') |
0.0078 |
Not Applicable |
|
29 |
Shanxi Datang International Zuoyun Wind Power Company Limited ('Zuoyun Windpower Company') |
0.0480 |
Not Applicable |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
61.3117 |
-1.51% |
|
|
|
|
|
(2) Steadily advanced with energy savings and emissions reduction
During the Period, coal consumption of the Group amounted to approximately 326.8g/kWh, representing a decrease of approximately 5.67g/kWh over the Corresponding Period Last Year, while the consolidated electricity consumption rate of power plants amounted to approximately 5.86%. Desulphurisation facilities operation rate and consolidated desulphurisation efficiency rate reached approximately 99.82% and 95.07%, respectively, representing increases of approximately 2.44 and 2.06 percentage-points year-on-year. Emission rates of sulphur dioxide, nitrogen oxides, smoke ash and waste water amounted to approximately 0.418, 1.586, 0.151 and 154g/kWh, respectively, representing decreases of approximately 72.06%, 27.97%, 41.47% and 24.88% year-on-year, which were significant decreases over the Corresponding Period Last Year.
(3) Achieved results in expanding income sources and reducing expenditure
During the Period, utilisation hours of the Group's generating units declined considerably due to sluggish power demand. Faced with the tough operating environment, the Group persisted in increasing revenues and reducing expenses at the same time; implemented various measures simultaneously to unearth potentials; and embarked on work to increase production and generate revenue at the opportune moment when the PRC economy stabilised and rebounded. Meanwhile, benefitting from the two tariff hikes in the second half of 2008, power sales of the Group increased by approximately RMB1,329 million year-on-year, representing an increase of approximately 7.84%.
(4) New projects commenced production as scheduled
During the Period, the Group delegated management responsibilities level-by-level according to production commencement targets, thereby ensuring that new generating units with a total capacity of approximately 2,653.5MW commenced production successfully for power generation. Of such new capacity, 1,860MW, 735MW and 58.5MW were attributable to coal-fired units, hydropower units and wind power units, respectively.
2. Major financial indicators and analysis
(1) Operating revenue
Revenues from power and heat sales of the Group accounted for approximately 89.27% of the total operating revenue of the Group. Sales revenue from principal power generation business accounted for 88.42% of the total operating revenue.
During the Period, revenues from power and heat sales of the Group amounted to approximately RMB18,289 million and RMB176 million, respectively, representing increases of approximately 7.84% and 54.46% over the Corresponding Period Last Year. Of the revenues, revenue from power sales increased by approximately RMB1,329 million, which was mainly attributable to the two on-grid tariff adjustments in the second half of 2008.
(2) Operating costs
During the Period, operating costs of power and heat generation of the Group increased by approximately RMB325 million and RMB3 million respectively as compared to the Corresponding Period Last Year to approximately RMB14,499 million and RMB261 million, respectively, representing increases of approximately 2.29% and 0.97%, respectively. Including which, fuel costs accounted for approximately 63.34% of the operating costs of power and heat generation of the Group. As coal consumption declined caused by the year-on-year decrease of power generation, fuel costs decreased by approximately RMB494 million over the Corresponding Period Last Year, representing a decrease of approximately 5.02%. Depreciation expenses accounted for approximately 23.90% of the costs of power and heat generation, realising an increase of approximately RMB667 million over the Corresponding Period Last Year, representing an increase of approximately 23.33%. The increase was mainly attributable to the commencement of operation of certain generating units in the second half of 2008 and the Period.
(3) Operating profit
During the Period, operating profit from power generation amounted to approximately RMB3,790 million while gross margin was approximately 20.72%, representing an increase of approximately 4.30% over the Corresponding Period Last Year.
Coal chemical business
Duolun Coal Chemical Project, a project developed and constructed by the Group with a controlling interest, is located in Duolun County, Xilinguole League in the Inner Mongolia Autonomous Region. The project uses the brown coal from Shengli Coal Mine in Inner Mongolia as raw materials. It produces chemical products with the world's advanced technologies, including the pulverised coal gasification technology, the synthetic gas purification technology, the large-scale methanol synthesis technology, the methanol-to-propylene technology and the propylene polymerisation technology. It is a most advanced coal chemical project adopting clean, efficient and high value-added utilisation of coal. The ultimate products of the project are 460,000 tonnes of polypropylene per year and other by-products.
The project is in the process of construction and it is expected that the project will become a new source of profit growth of the Group upon its successful development and construction.
Coal business
1. Business review
The East Unit 2 coal mine of Shengli Coal Mine, developed and constructed by the Group, is located in the central area of Shengli Coal Mine in Inner Mongolia, with a planned production scale reaching 60 million tonnes. The coal produced will be mainly used as raw materials for coal chemical projects and coal-based gas projects including Duolun Coal Chemical Project and Kesheketeng Qi Coal-based Natural Gas Project. Including which, the Phase 1 project pertains to a production scale of 10 million tonnes and has been approved by the relevant PRC authorities. During the Period, production of coal has commenced.
Meanwhile, the Group is also proceeding with the preliminary development works on the Phase 2 and Phase 3 projects of the East Unit 2 coal mine of Shengli Coal Mine in Inner Mongolia, Wujianfang Coal Mine and Kongduigou Coal Mine. The successful development of the above-mentioned coal mine projects will increase the coal self-sufficiency ratio of the Group's power plants.
2. Major financial indicators and analysis
(1) Operating revenue
During the Period, operating revenue from the coal business amounted to approximately RMB2,117 million, accounting for approximately 10.24% of the total operating revenue of the Group, representing an increase of approximately RMB1,908 million over the Corresponding Period Last Year.
The increase in operating revenue, apart from the sales of self-produced coal of the Group, was mainly attributable to the growth in coal sales business of Beijing Datang Fuel Company Limited ('Fuel Company'), a wholly-owned subsidiary of the Company.
(2) Operating costs
During the Period, operating costs of the coal
business amounted to approximately RMB2,045 million, representing an increase of approximately RMB1,840 million over the Corresponding Period Last Year. The increase in operating costs was mainly attributable to the growth in coal sales business of Fuel Company.
(3) Operating gains
During the Period, operating profit from the coal mine business amounted to approximately RMB72 million while gross margin was approximately 3.43%, representing an increase of approximately 1.41% over the Corresponding Period Last Year.
Management's review on the consolidated operating results
Operating revenue
During the Period, the Group realised an operating revenue of approximately RMB20,684 million, representing an increase of approximately 18.90% over the Corresponding Period Last Year. Of the operating revenue, revenue from power sales increased by approximately RMB1,329 million.
Operating costs
During the Period, total operating costs of the Group amounted to approximately RMB17,673 million, representing an increase of approximately RMB2,208 million or approximately 14.28% over the Corresponding Period Last Year. Of the total operating costs, fuel costs accounted for approximately 64.10%. Depreciation costs accounted for approximately 20.09% of the operating costs.
Net finance costs
During the Period, finance costs of the Group amounted to approximately RMB2,007 million, representing an increase of approximately RMB419 million or approximately 26.34% over the Corresponding Period Last Year. The significant increase was mainly due to the increase in the drawdown of borrowings and the termination of capitalisation of interests for newly operated generating units, resulting in an increase in interest expensing off during the Period.
Profit before income tax expense and net profit
During the Period, the Group reported a total profit before income tax expense amounting to approximately RMB1,346 million, representing an increase of approximately 126.64% over the Corresponding Period Last Year. Net profit attributable to equity holders of the Company amounted to approximately RMB722 million, representing an increase of approximately 53.04% over the Corresponding Period Last Year. The increase in profit of the Group was mainly attributable to the increase in sales revenue.
Financial position
As at 30 June 2009, total assets of the Group amounted to approximately RMB166.691 billion, representing an increase of approximately RMB9,299 million over the end of 2008. 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 construction-in-progress.
Total liabilities of the Group amounted to approximately RMB136.544 billion, representing an increase of approximately RMB9,796 million over the end of 2008. Of the total liabilities, long-term liabilities increased by approximately RMB18,701 million over the end of 2008. The increase in total liabilities was mainly due to an increase in the Group's borrowing level so as to meet the needs of daily operations and infrastructure construction.
Equity attributable to equity holders of the Company amounted to approximately RMB25,475 million, representing a decrease of approximately RMB515 million over the
end of 2008. Net asset value per share attributable to equity holders of the Company amounted to approximately RMB2.16, representing a decrease of approximately RMB0.05 per share over the end of 2008.
Liquidity
As at 30 June 2009, the asset-to-liability ratio of the Group was approximately 81.91%. The net debt-to-equity ratio (i.e. (loans + medium-term notes + short-term bonds - cash and cash equivalents - bank deposits with a maturity of over 3 months)/total equity) was approximately 376%.
As at 30 June 2009, cash and cash equivalents and bank deposits with a maturity of over 3 months of the Group amounted to approximately RMB1,874 million, of which deposits equivalent to approximately RMB138 million were foreign currency deposits. The Group had no entrusted deposits and overdue fixed deposits during the Period.
As at 30 June 2009, short-term loans of the Group amounted to approximately RMB21,172 million, bearing annual interest rates ranging from 2.10% to 7.47%. Long-term loans (excluding those repayable within 1 year) amounted to approximately RMB84,034 million and long-term loans repayable within 1 year amounted to approximately RMB3,484 million. All long-term loans (including those repayable within 1 year) were at annual interest rates ranging from 1.61% to 7.83%.
Loans of approximately RMB1,482 million was denominated in US dollar while a loan of approximately RMB618 million was denominated in HK dollar. The Group paid close attention to foreign exchange market fluctuations constantly and cautiously assessed foreign currency risks. Part of the borrowings of the Group was pledged against assets including accounts receivable and property, plant and equipment, etc. For details, please refer to notes 9 and 13 to the unaudited condensed consolidated interim financial information attached.
Welfare policy
As at 30 June 2009, the Group had 13,908 staff. During the Period, wages and staff welfare of the Group amounted to RMB901 million. The Group adopted a basic remuneration system with salaries determined-by-positions. It also adopted an incentive system based on assessments of profit accountabilities, as well as assessments of senior management executives of group entities in terms of their performance on assets operation, production safety and cultivation of party's disciplines and integrity culture. The Group attached importance to the staff's personal growth and vocational training and implemented an incentive system of 'integrating training, application and remuneration'. Adopting a basic principle of 'scientifically classifying staff groups and providing training according to varied needs', the Group adhered to its strategy of preserving talents and establishing a strong enterprise, relied on its three-tier management structure, and pushed forward training to all staff level by level.
Outlook for the second half of 2009
In the second half of 2009, the Group has a daunting task on maintaining stable and healthy development whilst being faced with both opportunities and challenges. As the macro-economy of the PRC is gradually recovering, power demand is expected to have a growth trend in the second half of the year, thereby easing considerably the pressure on the operation of the Group. However, the uncertainties arising from key-contract coal prices; the volatilities arising from market coal prices; the relatively low utilisation hours; and continuous increase in finance costs will further impose pressure on the operations of the Group.
Faced with a difficult operating environment, the Group will actively expand its room for development and strengthen its marketing and sales efforts by fully leveraging its advantages in resources, scale, geographical distribution and costs, aiming to achieve the power generation target for the year. It will exercise stringent cost controls and strive to contain unit fuel cost increase, with a view to enhancing the profitability of the Company.
In the second half of 2009, the Group will focus on the following tasks:
1. Strengthening production safety and management and ensuring stable operations of its generating units;
2. Implementing the power generation increment plan, ensuring adequate fuel supply, increasing revenues and reducing expenses, and enhancing economic efficiency;
3. Fulfilling its social obligation on environmental protection by striving to expedite energy-saving and emissions reduction, ensuring that the Group achieves a 100% rate of desulphurisation facility installation for all coal-fired units, with the desulphurisation facility operation rate and desulphurisation efficiency both reaching 95%;
4. Actively pushing forward preliminary works in an orderly manner. The Company will have a proper control in different phases of its construction-in-progress so as to complete commissioning of its generation units in a safe and high quality manner through adhering to the principle of ensuring synchronised advancement in safety, quality, progress and production preparation;
5. Continuing the implementation of the Company's diversified development strategy by actively pursuing the expansion of the Company in projects of coal-fired power, hydropower, wind power and nuclear power, as well as pursuing the development of power-related upstream and downstream projects such as coal mining, coal chemical and railway, with a view to ensuring the Company's sustainable development;
6. Actively expanding financing channels to secure fundings for the Company's scale development;
7. Comprehensively strengthening risk prevention and control. The Company will establish a sound risk prevention and control system so as to effectively safeguard the safety and integrity of its properties and assets and to facilitate an effective operation of the Company.
Share Capital and Dividends
Share capital
As at 30 June 2009, the total share capital of the Company amounted to 11,780,037,578 shares, divided into 11,780,037,578 shares carrying a nominal value of RMB1.00 each.
Shareholding of substantial shareholders
So far as the directors of the Company are aware, as at 30 June 2009, the persons listed below held the interests or short positions in the shares or underlying shares of the Company which were required to be disclosed to the Company under section 336 of the Securities and Futures Ordinance (the 'SFO') (Chapter 571 of the Laws of Hong Kong):
|
|
|
|
Approximate |
Approximate |
Approximate |
|
|
|
|
percentage |
percentage |
percentage |
|
|
|
|
to total issued |
to total issued |
to total issued |
|
|
|
Number of |
share capital of |
A shares of |
H shares of |
|
Name of shareholder |
Class of shares |
shares held |
the Company |
the Company |
the Company |
|
|
|
|
(%) |
(%) |
(%) |
|
|
|
|
|
|
|
|
China Datang Corporation |
A shares |
3,959,241,160 |
33.61 |
46.77 |
- |
|
|
H shares |
234,680,000(L) |
1.99(L) |
- |
7.08(L) |
|
Beijing Energy Investment |
A shares |
1,343,584,800 |
11.41 |
15.87 |
- |
|
(Group) Company Limited |
|
|
|
|
|
|
Hebei Construction |
A shares |
1,303,878,100 |
11.07 |
15.40 |
- |
|
Investment Company |
|
|
|
|
|
|
Tianjin Jinneng |
A shares |
1,212,012,600 |
10.29 |
14.32 |
- |
|
Investment Company |
|
|
|
|
|
|
Barclays PLC |
H shares |
263,464,802(L) |
2.24(L) |
- |
7.95(L) |
|
|
|
13,371,568(S) |
0.11(S) |
- |
0.40(S) |
|
|
|
|
|
|
|
|
(L) means Long Position (S) means Short Position (P) means Lending Pool |
|
|
|||
Dividends
The distribution proposal on the payment of cash dividends for the year of 2008 was considered and approved at the 2008 annual general meeting of the Company held on 3 June 2009. The above distribution proposal was completed before the date of this interim report.
The Board does not recommend the payment of any interim dividend for 2009.
Shareholding of the directors and supervisors
As at 30 June 2009, Mr. Fang Qinghai, a director of the Company, was interested in 24,000 A shares of the Company. Save as disclosed above, none of the directors, supervisors and chief executives of the Company nor their associates had any interests or short positions in the shares, underlying shares and debentures of the Company or any of its associated corporation (within the meaning of the SFO) that were required to be notified to the Company and The Stock Exchange of Hong Kong Limited (the 'Hong Kong Stock Exchange') under the provisions of Divisions 7 and 8 of Part XV of the SFO, or are required to be recorded in the register mentioned in the SFO pursuant to section 352 or otherwise required to be notified to the Company and the Hong Kong Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the 'Model Code') in Appendix 10 of the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (the 'Listing Rules').
Significant Events
1. Pursuant to the resolutions passed at the twenty-third meeting of the sixth session of the Board held on 30 March 2009 by the Company, the Company agreed to appoint Mr. Liu Lizhi and Mr. Wang Zhenbiao as Deputy General Managers of the Company with their terms of office effective from 30 March 2009.
2. Pursuant to the resolutions passed at the first meeting of the fourth session of Staff Representatives Congress held on 18 May 2009 by the Company, the Company agreed that Mr. Qiao Xinyi and Mr. Guan Zhenquan would serve as the supervisors representing the staff for the sixth session of the Supervisory Committee, for terms from 18 May 2009 to 30 June 2010. Mr. Zhang Jie and Mr. Shi Xiaofan ceased to be the supervisors representing the staff of the Company.
3. Pursuant to the resolutions passed at the eleventh meeting of the sixth session of the Supervisory Committee held on 26 May 2009 by the Company, the Company agreed to appoint Mr. Qiao Xinyi as Chairman of the sixth session of the Supervisory Committee of the Company for a term from 26 May 2009 to 30 June 2010. Mr. Zhang Jie ceased to be Chairman of the Supervisory Committee of the Company.
Purchase, Sale and Redemption of the Company's Listed Securities
During the Period, the Group has not purchased, sold or redeemed any of the listed securities of the Company.
Compliance with the Code on Corporate Governance Practices
To the knowledge of the Board, the Company has complied with all the code provisions under the Code on Corporate Governance Practices as set out in Appendix 14 of the Listing Rules during the Period.
Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers
Upon specific enquiries made to all the directors of the Company and in accordance with the information provided, the Board confirmed that all directors of the Company have complied with the provisions under the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules during the Period.
Audit Committee
The Audit Committee has reviewed the accounting principles and methods adopted by the Group with the management of the Company. They have also discussed matters regarding internal controls and the financial statements, including the review of the financial information for the Period.
The Audit Committee considers that the 2009 interim financial report of the Group has complied with the applicable accounting standards, and that the Group has made appropriate disclosures thereof.
By Order of the Board
Zhai Ruoyu
Chairman
Beijing, the PRC, 17 August 2009
Condensed Consolidated Interim Balance Sheet (Unaudited)
As At 30 June 2009
(Amounts expressed in thousands of Renminbi ('Rmb'))
|
|
Note |
30 June 2009 |
|
31 December 2008 |
|
|
|
|
|
(Restated) |
|
|
|
|
|
(Note 2) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
4 |
141,533,249 |
|
133,827,482 |
|
Investments in jointly controlled entities |
|
1,637,802 |
|
1,302,097 |
|
Investments in associates |
|
2,289,610 |
|
2,050,393 |
|
Available-for-sale investments |
5 |
900,343 |
|
675,849 |
|
Land use rights |
|
1,256,320 |
|
1,231,322 |
|
Deferred housing benefits |
|
178,461 |
|
193,469 |
|
Intangible assets |
|
2,047,354 |
|
2,031,158 |
|
Long-term entrusted loans to associates |
|
123,273 |
|
50,104 |
|
Other long-term assets |
|
137,862 |
|
79,350 |
|
Deferred income tax assets |
|
735,362 |
|
710,559 |
|
|
|
|
|
|
|
|
|
150,839,636 |
|
142,151,783 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
|
2,003,604 |
|
2,142,761 |
|
Prepayments and other receivables |
6 |
6,302,067 |
|
2,335,552 |
|
Accounts and notes receivable |
7 |
5,289,488 |
|
4,301,207 |
|
Fixed deposits over three months |
8 |
28,000 |
|
30,000 |
|
Restricted cash |
8 |
381,931 |
|
460,477 |
|
Cash and cash equivalents |
8 |
1,846,337 |
|
4,977,691 |
|
Assets of disposal group classified as held for sale |
|
- |
|
992,146 |
|
|
|
|
|
|
|
|
|
15,851,427 |
|
15,239,834 |
|
|
|
|
|
|
|
Total assets |
|
166,691,063 |
|
157,391,617 |
|
|
|
|
|
|
|
|
Note |
30 June 2009 |
|
31 December 2008 |
|
|
|
|
|
(Restated) |
|
|
|
|
|
(Note 2) |
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves attributable to the |
|
|
|
|
|
Company's equity holders |
|
|
|
|
|
Share capital |
|
11,780,038 |
|
11,780,038 |
|
Reserves |
|
12,620,400 |
|
11,483,771 |
|
Retained earnings |
|
|
|
|
|
- Proposed final dividend |
|
- |
|
1,295,804 |
|
- Others |
|
1,074,881 |
|
1,430,392 |
|
|
|
|
|
|
|
|
|
25,475,319 |
|
25,990,005 |
|
Minority interests |
|
4,672,192 |
|
4,654,462 |
|
|
|
|
|
|
|
Total equity |
|
30,147,511 |
|
30,644,467 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Long-term loans |
9 |
84,034,415 |
|
68,130,422 |
|
Long-term bonds |
10 |
3,000,000 |
|
- |
|
Deferred income |
|
520,148 |
|
475,212 |
|
Deferred income tax liabilities |
|
370,777 |
|
395,539 |
|
Other long-term liabilities |
11 |
3,947,341 |
|
4,170,097 |
|
|
|
|
|
|
|
|
|
91,872,681 |
|
73,171,270 |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
12 |
15,364,578 |
|
13,144,818 |
|
Taxes payable |
|
644,465 |
|
381,272 |
|
Dividend payable |
|
36,693 |
|
145 |
|
Short-term loans |
13 |
21,172,052 |
|
29,584,108 |
|
Short-term bonds |
|
3,500,000 |
|
3,500,000 |
|
Current portion of long-term liabilities |
9, 11 |
3,953,083 |
|
6,821,589 |
|
Liabilities of disposal group classified as held for sale |
|
- |
|
143,948 |
|
|
|
|
|
|
|
|
|
44,670,871 |
|
53,575,880 |
|
|
|
|
|
|
|
Total liabilities |
|
136,543,552 |
|
126,747,150 |
|
|
|
|
|
|
|
Total equity and liabilities |
|
166,691,063 |
|
157,391,617 |
The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.
Condensed Consolidated Interim Statement of Comprehensive Income (Unaudited)
For The Six Months Ended 30 June 2009
(Amounts expressed in thousands of Rmb, except per share data)
|
|
|
For the six months |
|
|
|
|
ended 30 June |
|
|
|
Note |
2009 |
2008 |
|
|
|
|
(Restated) |
|
|
|
|
(Notes 2 and 3) |
|
|
|
|
|
|
Operating revenue |
14 |
20,683,761 |
17,395,565 |
|
|
|
|
|
|
Operating costs |
|
|
|
|
Local government surcharges |
|
(186,361) |
(175,141) |
|
Fuel-power generation |
|
(9,349,143) |
(9,843,501) |
|
Fuel-coal sales |
|
(1,978,614) |
(213,115) |
|
Depreciation |
|
(3,549,784) |
(2,878,173) |
|
Repairs and maintenance |
|
(761,913) |
(657,718) |
|
Wages and staff welfares |
|
(901,340) |
(914,105) |
|
Others |
|
(945,662) |
(782,964) |
|
|
|
|
|
|
|
|
(17,672,817) |
(15,464,717) |
|
|
|
|
|
|
Operating profit |
|
3,010,944 |
1,930,848 |
|
Share of post-tax (loss)/profit of jointly controlled entities |
|
(7,495) |
24,752 |
|
Share of post-tax profit of associates |
|
185,747 |
195,789 |
|
Interest income |
|
19,513 |
31,318 |
|
Finance costs |
20(b) |
(2,007,402) |
(1,588,853) |
|
Other gain |
18 |
144,633 |
- |
|
|
|
|
|
|
Profit before income tax (expense)/benefit |
|
1,345,940 |
593,854 |
|
|
|
|
|
|
Income tax (expense)/benefit |
15 |
(225,109) |
28,130 |
|
|
|
|
|
|
Profit for the period |
|
1,120,831 |
621,984 |
|
|
|
|
|
|
Other comprehensive income/(loss), net of tax |
|
|
|
|
Fair value loss on available-for-sale financial assets |
|
- |
(1,508,116) |
|
Share of other comprehensive income/(loss) of associates, |
|
|
|
|
net of tax |
|
50,110 |
(234,113) |
|
Currency translation differences |
|
(148) |
25,828 |
|
|
|
|
|
|
Other comprehensive income/(loss) for the period, net of tax |
|
49,962 |
(1,716,401) |
|
|
|
|
|
|
Total comprehensive income/(loss) for the period |
|
1,170,793 |
(1,094,417) |
|
|
|
|
|
|
Profit attributable to: |
|
|
|
|
- Equity holders of the Company |
|
721,960 |
471,757 |
|
- Minority interests |
|
398,871 |
150,227 |
|
|
|
|
|
|
|
|
1,120,831 |
621,984 |
|
|
|
|
|
|
Total comprehensive income/(loss) attributable to: |
|
|
|
|
- Equity holders of the Company |
|
771,922 |
(1,244,644) |
|
- Minority interests |
|
398,871 |
150,227) |
|
|
|
|
|
|
|
|
1,170,793 |
(1,094,417) |
|
|
|
|
|
|
Earnings per share for profit attributable to the equity |
|
|
|
|
holders of the Company during the period |
|
|
|
|
- basic (Rmb) |
16 |
0.0613 |
0.0402 |
|
- diluted (Rmb) |
16 |
0.0613 |
0.0402 |
|
|
|
|
|
|
Dividends proposed and paid |
|
1,295,804 |
1,408,582 |
|
|
|
|
|
The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.
Condensed Consolidated Interim Statement of
Changes in Equity (Unaudited)
For The Six Months Ended 30 June 2009
(Amounts expressed in thousands of Rmb)
l
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority |
|
|
|
|
Attributable to equity holders of the Company |
interests |
Total equity |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for-sale |
|
|
|
|
|
|
|
|
|
|
Statutory |
Discretionary |
|
Currency |
investment |
|
|
|
|
|
|
|
|
Share |
Capital |
surplus |
surplus |
Restricted |
translation |
revaluation |
Other |
Retained |
|
|
|
|
|
Note |
capital |
reserve |
reserve |
reserve |
reserve |
differences |
reserve |
reserves |
earnings |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2009, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as previously reported |
|
11,780,038 |
1,592,988 |
2,913,296 |
6,800,692 |
115,656 |
17,036 |
126,435 |
(55,168) |
2,699,032 |
25,990,005 |
4,654,462 |
30,644,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to beginning balance |
2 |
- |
- |
(27,164) |
- |
- |
- |
- |
- |
27,164 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2009, as restated |
|
11,780,038 |
1,592,988 |
2,886,132 |
6,800,692 |
115,656 |
17,036 |
126,435 |
(55,168) |
2,726,196 |
25,990,005 |
4,654,462 |
30,644,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
- |
- |
- |
- |
- |
- |
- |
- |
721,960 |
721,960 |
398,871 |
1,120,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of other comprehensive income of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
associates, net of tax |
|
- |
- |
- |
- |
- |
- |
50,110 |
- |
- |
50,110 |
- |
50,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences |
|
- |
- |
- |
- |
- |
(148) |
- |
- |
- |
(148) |
- |
(148) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
period ended 30 June 2009 |
|
- |
- |
- |
- |
- |
(148) |
50,110 |
- |
721,960 |
771,922 |
398,871 |
1,170,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital injection into subsidiaries from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
minority shareholders |
|
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
234,826 |
234,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of a subsidiary |
|
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(443,198) |
(443,198) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
- |
- |
- |
- |
- |
- |
- |
9,196 |
- |
9,196 |
3,033 |
12,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit appropriation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer to restricted reserve |
17 |
- |
- |
- |
- |
11,975 |
- |
- |
- |
(11,975) |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer to surplus reserve |
17 |
- |
- |
- |
1,065,496 |
- |
- |
- |
- |
(1,065,496 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends relating to 2008 |
17 |
- |
- |
- |
- |
- |
- |
- |
- |
(1,295,804) |
(1,295,804) |
(175,802) |
(1,471,606) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 30 June 2009 |
|
11,780,038 |
1,592,988 |
2,886,132 |
7,866,188 |
127,631 |
16,888 |
176,545 |
(45,972) |
1,074,881 |
25,475,319 |
4,672,192 |
30,147,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority |
|
|
|
|
Attributable to equity holders of the Company |
interests |
Total equity |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for-sale |
|
|
|
|
|
|
|
|
|
|
Statutory |
Discretionary |
|
Currency |
investment |
|
|
|
|
|
|
|
|
Share |
Capital |
surplus |
surplus |
Restricted |
translation |
revaluation |
Other |
Retained |
|
|
|
|
|
Note |
capital |
reserve |
reserve |
reserve |
reserve |
differences |
reserve |
reserves |
earnings |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2008, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as previously reported |
|
11,734,083 |
1,519,014 |
2,620,950 |
6,762,061 |
124,625 |
(2,844) |
3,314,579 |
14,921 |
3,668,287 |
29,755,676 |
4,599,081 |
34,354,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to beginning balance |
2 |
- |
- |
(12,253) |
- |
- |
- |
- |
- |
12,253 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2008, as restated |
|
11,734,083 |
1,519,014 |
2,608,697 |
6,762,061 |
124,625 |
(2,844) |
3,314,579 |
14,921 |
3,680,540 |
29,755,676 |
4,599,081 |
34,354,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
- |
- |
- |
- |
- |
- |
- |
- |
471,757 |
471,757 |
150,227 |
621,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value loss, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale investments |
|
- |
- |
- |
- |
- |
- |
(1,508,116) |
- |
- |
(1,508,116) |
- |
(1,508,116) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of other comprehensive loss of associates, net of tax |
|
- |
- |
- |
- |
- |
- |
(234,113) |
- |
- |
(234,113) |
- |
(234,113) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences |
|
- |
- |
- |
- |
- |
25,828 |
- |
- |
- |
25,828 |
- |
25,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) for the |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
period ended 30 June 2008 |
|
- |
- |
- |
- |
- |
25,828 |
(1,742,229) |
- |
471,757 |
(1,244,644) |
150,227 |
(1,094,417) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business combination |
|
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
781,143 |
781,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital injection into subsidiaries from minority shareholders |
|
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
96,520 |
96,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion of convertible bonds |
|
9,272 |
14,979 |
- |
- |
- |
- |
- |
(3,011) |
- |
21,240 |
- |
21,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
- |
- |
- |
- |
- |
- |
- |
10,880 |
(5,552) |
5,328 |
- |
5,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit appropriation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer from restricted reserve |
17 |
- |
- |
- |
- |
(20,553) |
- |
- |
- |
20,553 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer to surplus reserve |
17 |
- |
- |
- |
38,631 |
- |
- |
- |
- |
(38,631) |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends relating to 2007 |
17 |
- |
- |
- |
- |
- |
- |
- |
- |
(1,408,582) |
(1,408,582) |
(812,733) |
(2,221,315) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 30 June 2008 |
|
11,743,355 |
1,533,993 |
2,608,697 |
6,800,692 |
104,072 |
22,984 |
1,572,350 |
22,790 |
2,720,085 |
27,129,018 |
4,814,238 |
31,943,256 |
The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.
Condensed Consolidated Interim Cash Flow Statement (Unaudited)
For The Six Months Ended 30 June 2009
(Amounts expressed in thousands of Rmb)
|
|
|
For the six months |
|
|
|
|
ended 30 June |
|
|
|
Note |
2009 |
2008 |
|
|
|
|
(Restated) |
|
|
|
|
(Note 2) |
|
|
|
|
|
|
Net cash provided by operating activities |
|
5,920,865 |
3,490,673 |
|
|
|
|
|
|
Net cash used in investing activities |
20(c) |
(12,669,046) |
(15,530,406) |
|
|
|
|
|
|
Net cash provided by financing activities |
20(c) |
3,613,340 |
17,788,952 |
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
(3,134,841) |
5,749,219 |
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
4,977,691 |
3,421,861 |
|
|
|
|
|
|
Exchange gain/(losses) on cash and cash equivalents |
|
3,487 |
(6,044) |
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
1,846,337 |
9,165,036 |
|
|
|
|
|
The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.
Notes to the Condensed Consolidated Interim Financial Information (Unaudited)
For The Six Months Ended 30 June 2009
(Amounts expressed in thousands of Rmb unless otherwise stated)
1. Company Organisation and Principal Activities
Datang International Power Generation Co., Ltd. (the 'Company') was incorporated in Beijing, the People's Republic of China (the 'PRC'), on 13 December 1994 as a joint stock limited company. The Company listed its H Shares on the Stock Exchange of Hong Kong Limited and the London Stock Exchange Limited on 21 March 1997 and was registered as a sino-foreign joint stock limited company on 13 May 1998. On 20 December 2006, the Company listed its A Shares on the Shanghai Stock Exchange.
The principal activities of the Company and its subsidiaries are power generation and power plant development in the PRC.
This unaudited condensed consolidated interim financial information has been approved for issue by the Board of Directors on 14 August 2009.
2. Principal Accounting Policies
The unaudited condensed consolidated interim financial information for the six months ended 30 June 2009 has been prepared in accordance with International Accounting Standard ('IAS') 34 'Interim Financial Reporting'. The unaudited condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2008.
As at 30 June 2009, a significant portion of the funding requirements of the Company and its subsidiaries for capital expenditure was satisfied by short-term borrowings. Consequently, as at 30 June 2009, the Company and its subsidiaries had a negative working capital balance of approximately Rmb28,819 million (31 December 2008: Rmb38,336 million). The Company and its subsidiaries had significant undrawn borrowing facilities, subject to certain conditions, amounting to approximately Rmb100.02 billion (31 December 2008: Rmb38.16 billion) and may refinance and/or restructure certain short-term loans into long-term loans and will also consider alternative sources of financing, where applicable. The directors of the Company and its subsidiaries are of the opinion that the Company and its subsidiaries will be able to meet its liabilities as and when they fall due within the next twelve months and have prepared this unaudited condensed consolidated interim financial information on a going concern basis.
Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2008, as described in those annual financial statements.
(a) Change of accounting policies as a result of change in standard requirements
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2009.
• IAS 1 (revised), 'Presentation of financial statements'. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement.
Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income).
The Company and its subsidiaries elected to present one performance statement and this unaudited condensed consolidated interim financial information has been prepared under the revised disclosure requirements.
• Amendments to International Financial Accounting Standard ('IFRS') 1 and IAS 27, 'Cost of an investment in a subsidiary, jointly controlled entity or associate', which the amendments to part of IAS 27 are relevant to the Company and its subsidiaries. The amendments to IAS 27 remove the definition of cost method and require an entity to recognise a dividend from a subsidiary, jointly controlled entity or associate in statement of comprehensive income in its separate financial statements when its right to receive the dividend is established. The Company and its subsidiaries apply the amendments prospectively from 1 January 2009 in their separate financial statements.
• IFRS 8, 'Operating segments'. IFRS 8 replaces IAS 14, 'Segment reporting'. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. The Company and its subsidiaries categorised their operating activities into power generation segment, chemical segment, coal segment and other segments for the purpose of segment reporting.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-makers have been identified as executive directors and certain senior management of the Company that make strategic decisions.
IFRS 8 revised certain disclosure items which the Company and its subsidiaries have restated comparative information accordingly.
• Amendment to IFRS 7, 'Financial instruments: disclosures'. The amendment increases the disclosure requirements about fair value measurement and reinforces existing principles for disclosure about liquidity risk. The amendment introduces a three-level hierarchy for fair value measurement disclosures about financial instruments and requires some specific quantitative disclosures for those financial instruments classified in the lowest level in the hierarchy. It also requires entities to provide additional disclosures about the relative reliability of fair value measurements. In addition, the amendment clarifies and enhances the existing requirements for the disclosure of liquidity risk primarily requiring a separate liquidity risk analysis for derivative and non-derivative financial liabilities. The Company and its subsidiaries will make additional relevant disclosures in its financial statements ending 31 December 2009.
(b) Change of accounting policy on jointly controlled entities at consolidation level
In 2007, the Company and its subsidiaries accounted for investments in jointly controlled entities under proportionate consolidation method at consolidation level, which is consistent with the accounting policy under PRC Accounting Standards ('PRC GAAP') and IFRS. In 2008, according to the CAS Interpretation No. 2 issued by the Ministry of Finance of the People's Republic of China ('MOF') released in September 2008, jointly controlled entities are no longer allowed to be proportionately consolidated and only the equity method is allowed when preparing consolidated financial statements. Since the Company is listed in both the PRC and Hong Kong and publishes financial statements under both PRC GAAP and IFRS simultaneously, to keep the comparability of the financial information produced under PRC GAAP and IFRS, the directors changed the accounting policy of jointly controlled entities under IFRS from proportionate consolidation into equity method at consolidation level as at 2008 year end, which has been retrospectively applied. Accordingly, this 2008 consolidated interim operating results were restated as follows. There is no impact on the earnings per share as a result of such a change.
|
|
For the six months ended |
|
|
30 June 2008 |
|
|
|
|
Reduction in operating revenue |
(256,386) |
|
Reduction in operating costs |
(210,007) |
|
Increase in share of post-tax profit of jointly controlled entities |
24,752 |
|
Reduction in interest income |
(1,327) |
|
Reduction in finance costs |
(24,202) |
|
Increase in income tax expense |
55 |
|
Increase in cash and cash equivalents |
28,391 |
(c) Adjustment on statutory surplus reserve
In year 2009, the Company and its subsidiaries adopted CAS Interpretation No. 3 promulgated by MOF on 11 June 2009 since 1 January 2009. According to CAS Interpretation No. 3, the Company and its subsidiaries recorded certain retrospective adjustments under PRC GAAP and adjusted statutory surplus reserves accordingly. In order to ensure the distributable reserve under IFRS is not affected by the adjustments at each period above, directors of the Company and its subsidiaries retrospectively reclassified the same amounts from retained earnings to statutory surplus reserve accordingly under IFRS. Please refer to Note 17 for further details.
3. Correction of Prior Period Errors
As at 2008 year end, an error was discovered whereby an associate engaged in coal mining business accrued certain provisions that did not meet the definition of liabilities under IFRS during 2007 and 2008. This error was corrected subsequently and disclosed in 2008 annual financial statements. The 2008 interim comparative figure of share of post-tax profit of associates was also increased by Rmb67.779 million accordingly. The basic and diluted earnings per share for profit attributable to equity holders of the Company for the six months ended 30 June 2008 were increased by Rmb0.0058 and Rmb0.0058, respectively.
4. Property, Plant and Equipment
|
|
30 June |
|
31 December |
|
|
2009 |
|
2008 |
|
|
|
|
|
|
Beginning of the period/year |
133,827,482 |
|
99,967,852 |
|
Business combination |
- |
|
2,288,524 |
|
Additions |
11,527,758 |
|
43,093,885 |
|
Sales for lease-back |
- |
|
(4,499,254) |
|
Transferred to disposal group classified as held for sale |
- |
|
(117,872) |
|
Disposals |
(255,349) |
|
(695,081) |
|
Depreciation |
(3,566,642) |
|
(6,189,452) |
|
Impairment |
- |
|
(21,120) |
|
|
|
|
|
|
End of the period/year |
141,533,249 |
|
133,827,482 |
Dam, electricity utility plants in services and construction-in-progress included in property, plant and equipment include the following amounts which the Company and its subsidiaries are the lessees under finance leases:
|
|
|
30 June |
|
31 December |
|
|
|
2009 |
|
2008 |
|
|
|
|
|
|
|
Cost - capitalised finance leases |
|
4,599,926 |
|
4,599,926 |
|
Accumulated depreciation |
|
(403,893) |
|
(252,200) |
|
|
|
|
|
|
|
Net book value |
|
4,196,033 |
|
4,347,726 |
Pursuant to Document No.2004[32] issued by National Development and Reform Commission ('NDRC') in November 2004, the State government has tightened its control over the construction of power plants that have not received the relevant government approvals. The directors of the Company and its subsidiaries have assessed the approval requirements of Document No.2004[32] and are of the opinion that their power plants under construction that are within the scope of this document will ultimately obtain the approvals from NDRC.
5. Available-for-sale Investments
|
|
|
30 June |
|
31 December |
|
|
|
2009 |
|
2008 |
|
|
|
|
|
|
|
Beginning of the period/year |
|
675,849 |
|
4,733,764 |
|
Business combination |
|
- |
|
223,416 |
|
Addition of investments |
|
281,000 |
|
8,500 |
|
Revaluation losses* |
|
- |
|
(2,899,860) |
|
Disposals |
|
(56,506) |
|
(1,389,971) |
|
|
|
|
|
|
|
End of the period/year |
|
900,343 |
|
675,849 |
* Revaluation losses of available-for-sale investments mainly represents the decrease of the A share price of Daqin Railway Company Limited, which are listed in the Shanghai Stock Exchange. By 31 December 2008, the Company sold all the shares of Daqin Railway Company Limited.
6. Prepayments and Other Receivables
|
|
30 June |
|
31 December |
|
|
2009 |
|
2008 |
|
|
|
|
|
|
Prepayments for |
|
|
|
|
- Fuel and materials |
2,951,739 |
|
744,644 |
|
- Construction |
799,302 |
|
706,711 |
|
Prepayments for investments |
1,355,000 |
|
- |
|
Value-added tax recoverables |
775,437 |
|
- |
|
Receivables from disposal of property, plant and equipment |
195,752 |
|
584,942 |
|
Advances to employees |
35,119 |
|
12,419 |
|
Staff housing maintenance fund deposits |
24,047 |
|
21,205 |
|
Receivables from sale of materials |
8,410 |
|
84,540 |
|
Others |
157,261 |
|
181,091 |
|
6,302,067 |
|
2,335,552 |
7. Accounts and Notes Receivable
Accounts and notes receivable of the Company and its subsidiaries primarily represent receivables from regional or provincial grid companies for tariff revenue and coal sales customers. These receivables are unsecured and non-interest bearing.
As at 30 June 2009, certain accounts receivable and tariff collection rights of Rmb2,796 million (31 December 2008: Rmb1,506 million) were pledged for bank loans (Notes 9(a) and 13(a)).
The Company and its subsidiaries usually grant about one month's credit period to local power grid customers and coal purchase customers from the end of the month in which the sales are made. Ageing analysis of accounts and notes receivable is as follows:
|
|
30 June |
|
31 December |
|
|
2009 |
|
2008 |
|
|
|
|
|
|
Within 1 year |
5,286,477 |
|
4,298,196 |
|
Between 1 to 2 years |
3,011 |
|
3,011 |
|
|
|
|
|
|
|
5,289,488 |
|
4,301,207 |
8. Bank Balances and Cash
|
|
30 June |
|
31 December |
|
|
2009 |
|
2008 |
|
|
|
|
|
|
Bank deposits |
1,152,635 |
|
3,988,882 |
|
Deposits with China Datang Group Finance Company Limited |
|
|
|
|
('Datang Finance') |
692,129 |
|
986,969 |
|
Cash on hand |
1,573 |
|
1,840 |
|
|
|
|
|
|
Cash and cash equivalents |
1,846,337 |
|
4,977,691 |
|
|
|
|
|
|
Restricted cash |
381,931 |
|
460,477 |
|
Fixed deposits over three months |
28,000 |
|
30,000 |
|
|
|
|
|
|
|
2,256,268 |
|
5,468,168 |
9. Long-term Loans
|
|
30 June |
|
31 December |
|
|
2009 |
|
2008 |
|
|
|
|
|
|
Long-term bank loans (a) |
84,989,150 |
|
72,309,093 |
|
Other long-term loans (b) |
2,529,670 |
|
2,173,232 |
|
Entrusted loan (c) |
- |
|
110,000 |
|
|
|
|
|
|
|
87,518,820 |
|
74,592,325 |
|
Less: amounts due within one year included under current liabilities |
(3,484,405) |
|
(6,461,903) |
|
|
|
|
|
|
|
84,034,415 |
|
68,130,422 |
|
|
|
|
(a) Long-term bank loans
|
|
|
|
|
|
30 June 2009 |
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
Foreign |
|
Rmb |
|
amounts due |
|
Non-current |
|
Annual |
|
|
currency |
|
equivalent |
|
within one year |
|
portion |
|
interest rate |
|
|
'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured loans |
|
|
|
|
|
|
|
|
|
|
- Rmb denominated |
|
|
38,099,876 |
|
(1,373,500) |
|
36,726,376 |
|
4.62%-7.05% |
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed loans (i) |
|
|
|
|
|
|
|
|
|
|
- Rmb denominated |
|
|
7,376,880 |
|
(1,313,000) |
|
6,063,880 |
|
3.60%-6.72% |
|
|
|
|
|
|
|
|
|
|
|
|
- USD denominated |
49,571 |
|
338,649 |
|
(327,826) |
|
10,823 |
|
LIBOR+1.2%/ |
|
|
|
|
|
|
|
|
|
|
4.14% |
|
|
|
|
|
|
|
|
|
|
|
|
Secured loans (ii) |
|
|
|
|
|
|
|
|
|
|
- Rmb denominated |
|
|
39,173,745 |
|
(417,625) |
|
38,756,120 |
|
4.86%-7.83% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
84,989,150 |
|
(3,431,951) |
|
81,557,199 |
|
|
|
|
|
|
|
|
31 December 2008 |
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
Foreign |
|
Rmb |
|
amounts due |
|
Non-current |
|
Annual |
|
|
currency |
|
equivalent |
|
within one year |
|
portion |
|
interest rate |
|
|
'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured loans |
|
|
|
|
|
|
|
|
|
|
- Rmb denominated |
|
|
29,897,070 |
|
(3,069,770) |
|
26,827,300 |
|
4.86%-7.74% |
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed loans (i) |
|
|
|
|
|
|
|
|
|
|
- Rmb denominated |
|
|
7,477,850 |
|
(1,388,170) |
|
6,089,680 |
|
3.60%-7.83% |
|
|
|
|
|
|
|
|
|
|
|
|
- USD denominated |
73,564 |
|
502,783 |
|
(327,971) |
|
174,812 |
|
LIBOR+1.2%/ |
|
|
|
|
|
|
|
|
|
|
4.14% |
|
|
|
|
|
|
|
|
|
|
|
|
Secured loans (ii) |
|
|
|
|
|
|
|
|
|
|
- Rmb denominated |
|
|
34,431,390 |
|
(1,257,585) |
|
33,173,805 |
|
5.10%-7.83% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
72,309,093 |
|
(6,043,496) |
|
66,265,597 |
|
|
(i) As at 30 June 2009, long-term bank loans of approximately Rmb6,820 million were guaranteed by the Company (31 December 2008: Rmb6,767 million) while approximately Rmb880 million (31 December 2008: Rmb1,214 million) were guaranteed by minority shareholders of certain subsidiaries.
As at 30 June 2009, long-term bank loan of approximately Rmb15 million (31 December 2008: nil) were guaranteed by Jiangxi Provincial Investment Corporation.
(ii) As at 30 June 2009, long-term bank loans of Rmb1,025 million (31 December 2008: Rmb810 million) were secured by the following assets:
|
|
30 June |
|
31 December |
|
|
2009 |
|
2008 |
|
|
|
|
|
|
Bank balances and cash |
4,071 |
|
8,277 |
|
Accounts and notes receivable |
27,974 |
|
10,757 |
|
Prepayments and other receivables |
14,102 |
|
14,168 |
|
Inventories |
436 |
|
436 |
|
Property, plant and equipment |
1,666,330 |
|
1,706,359 |
|
|
|
|
|
|
|
1,712,913 |
|
1,739,997 |
As at 30 June 2009, certain long-term bank loans of Rmb6 million (31 December 2008: Rmb30 million) were secured by equity interest of a subsidiary while long-term bank loans of Rmb38,143 million (31 December 2008: Rmb33,591 million) were secured by tariff collection right of certain subsidiaries.
(b) Other long-term loans
|
|
|
|
|
30 June 2009 |
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
Foreign |
|
Rmb |
amounts due |
|
Non-current |
Annual |
|
|
currency |
|
equivalent |
within one year |
|
portion |
interest rate |
|
|
'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured loans (i) |
|
|
|
|
|
|
|
|
- Rmb denominated |
|
|
1,200,000 |
- |
|
1,200,000 |
4.86%-5.35% |
|
|
|
|
|
|
|
|
|
|
Guaranteed loans |
|
|
|
|
|
|
|
|
- Rmb denominated (ii) |
|
|
220,000 |
- |
|
220,000 |
4.86% |
|
|
|
|
|
|
|
|
Approximately |
|
- USD denominated (iii) |
162,425 |
|
1,109,670 |
(52,454) |
|
1,057,216 |
1.61% |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
2,529,670 |
(52,454) |
|
2,477,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 December 2008 |
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
Foreign |
|
Rmb |
amounts due |
|
Non-current |
Annual |
|
|
currency |
|
equivalent |
within one year |
|
portion |
interest rate |
|
|
'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured loans (i) |
|
|
|
|
|
|
|
|
- Rmb denominated |
|
|
810,000 |
- |
|
810,000 |
4.86%-7.35% |
|
|
|
|
|
|
|
|
|
|
Guaranteed loans |
|
|
|
|
|
|
|
|
- Rmb denominated (ii) |
|
|
203,500 |
(203,500) |
|
- |
6.80% |
|
|
|
|
|
|
|
|
Approximately |
|
- USD denominated (iii) |
169,685 |
|
1,159,732 |
(104,907) |
|
1,054,825 |
3.29% |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
2,173,232 |
(308,407) |
|
1,864,825 |
|
(i) It represented unsecured loan from Datang Finance, a non-bank financial institution and an associate of the Company.
(ii) It represented loan borrowed by the Company and its subsidiaries from Datang Finance and guaranteed by the Company.
(iii) It represented loan borrowed by 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 Corporation ('China Datang') provided guarantees on 60% of the loan balance.
(c) Entrusted loan
As at 31 December 2008, entrusted loan represented an unsecured loan borrowed by Inner Mongolia Datang International Hohhot Thermal Power Generation Company Limited from Tuketuo Guoneng Investment Company Limited through Bank of Communication Beijing Branch, bearing annual interest at 7.47%. As at 30 June 2009, the loan has been fully repaid.
10. Long-term Bonds
As at 30 June 2009, 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 5-year term with annual interest rate of 4.10%. As at 30 June 2009, accrued interests for these notes amounted to Rmb41 million.
11. Other Long-term Liabilities
|
|
|
30 June |
31 December |
|
|
|
2009 |
2008 |
|
|
|
|
|
|
Finance lease payables |
|
4,340,389 |
4,454,153 |
|
Others |
|
75,630 |
75,630 |
|
|
|
|
|
|
|
|
4,416,019 |
4,529,783 |
|
Less: Amounts due within one year included under current liabilities |
|
(468,678 |
(359,686 |
|
|
|
|
|
|
|
|
3,947,341 |
4,170,097 |
12. Accounts Payable and Accrued Liabilities
|
|
|
30 June |
31 December |
|
|
|
2009 |
2008 |
|
|
|
|
|
|
Accounts and notes payable |
|
14,256,431 |
12,159,099 |
|
Other payables and accrued liabilities |
|
1,108,147 |
985,719 |
|
|
|
|
|
|
|
|
15,364,578 |
13,144,818 |
|
|
|
|
|
|
Ageing analysis of accounts and notes payable was as follows: |
|
|
|
|
|
|
|
|
|
|
|
30 June |
31 December |
|
|
|
2009 |
2008 |
|
|
|
|
|
|
Within 1 year |
|
12,235,514 |
9,798,639 |
|
Between 1 to 2 years |
|
1,185,578 |
1,834,367 |
|
Over 2 years |
|
835,339 |
526,093 |
|
|
|
|
|
|
|
|
14,256,431 |
12,159,099 |
13. Short-term Loans
|
|
|
|
30 June |
31 December |
|
|
|
|
2009 |
2008 |
|
|
|
|
|
|
|
Short-term bank loans (a) |
|
|
19,107,172 |
25,982,130 |
|
Other short-term loans (b) |
|
|
2,064,880 |
3,601,978 |
|
|
|
|
|
|
|
|
|
|
21,172,052 |
29,584,108 |
|
|
|
|
|
|
(a) Short-term bank loans |
|
|
|
|
|
|
|
|
30 June 2009 |
|
|
|
Foreign |
|
Rmb |
Annual |
|
|
currency |
|
equivalent |
interest rate |
|
|
'000 |
|
|
|
|
|
|
|
|
|
|
Unsecured loans |
|
|
|
|
|
- Rmb denominated |
|
|
16,053,961 |
4.17%-7.47% |
|
- USD denominated |
5,002 |
|
34,173 |
USD 3 months |
|
|
|
|
|
LIBOR+350 BP |
|
|
|
|
|
|
|
Guaranteed loans |
|
|
|
|
|
- Rmb denominated (i) |
|
|
2,251,600 |
4.78%-7.47% |
|
- HKD denominated (ii) |
700,000 |
|
618,438 |
2.27% |
|
|
|
|
|
|
|
Secured loans |
|
|
|
|
|
- Rmb denominated (iii) |
|
|
149,000 |
2.10%-2.25% |
|
|
|
|
|
|
|
|
|
|
19,107,172 |
|
|
|
|
|
|
|
|
|
|
|
31 December 2008 |
|
|
|
Foreign |
|
Rmb |
Annual |
|
|
currency |
|
equivalent |
interest rate |
|
|
'000 |
|
|
|
|
|
|
|
|
|
|
Unsecured loans |
|
|
|
|
|
- Rmb denominated |
|
|
19,438,876 |
4.78%-7.47% |
|
- USD denominated |
9,600 |
|
65,612 |
4.00%/ |
|
|
|
|
|
USD 3 months |
|
|
|
|
|
LIBOR+350 BP |
|
|
|
|
|
|
|
Guaranteed loans |
|
|
|
|
|
- Rmb denominated (i) |
|
|
5,277,000 |
5.99%-7.74% |
|
- HKD denominated (ii) |
700,000 |
|
617,323 |
4.35% |
|
|
|
|
|
|
|
Secured loans |
|
|
|
|
|
- Rmb denominated (iii) |
|
|
268,800 |
5.04%-6.03% |
|
|
|
|
|
|
|
Discounted notes receivable |
|
|
|
|
|
- Rmb denominated (iv) |
|
|
314,519 |
0%-0.37% |
|
|
|
|
|
|
|
|
|
|
25,982,130 |
|
|
|
|
|
|
(i) As at 30 June 2009, the Company provided guarantees for short-term bank loans, including which Rmb540 million (31 December 2008: Rmb927 million) of which were counter-guaranteed by the minority shareholders of certain subsidiaries at their respective equity interests.
(ii) As at 30 June 2009 and 31 December 2008, the HKD denominated short-term bank loans were guaranteed by the headquarters of Bank of China and counter-guaranteed by the Company.
(iii) As at 30 June 2009, certain short-term bank loans of Rmb149.0 million (31 December 2008: Rmb252.5 million) were secured by accounts receivable of certain subsidiaries.
As at 31 December 2008, short-term bank loans of Rmb16.3 million were secured by tariff collection rights of certain subsidiaries. There was no such secured short-term bank loan as at 30 June 2009.
(iv) The amount represented the discounted notes receivable with recourse. Interest on certain discounted notes is 0% as those interest is borne by the drawers.
(b) Other short-term loans - Rmb denominated
|
|
|
30 June |
31 December |
|
|
|
2009 |
2008 |
|
|
|
|
|
|
Unsecured loans |
|
|
|
|
- Datang Finance |
|
1,564,880 |
2,504,000 |
|
- Jilin Province Trust and Investment Co., Ltd. |
|
500,000 |
500,000 |
|
|
|
|
|
|
Guaranteed loans |
|
|
|
|
- CITIC Trust and Investment Co. Ltd. ('CITIC') (i) |
|
- |
497,978 |
|
- Zhongrong International Trust Company ('Zhongrong Trust') (ii) |
|
- |
100,000 |
|
|
|
|
|
|
|
|
2,064,880 |
3,601,978 |
(i) It represented loan acquired by Yunnan Datang International Lixianjiang Hydropower Development Company Limited from CITIC, which was guaranteed by China Construction Bank.
(ii) It represented a borrowing from Zhongrong Trust, for which the Industrial and Commercial Bank of China Shanxi Branch committed to provide a loan facility to Shanxi Datang International Yuncheng Power Generation Company Limited for the repayment of the borrowings upon maturity.
14. Operating Revenue and Segment Reporting
|
|
For the six months |
|
|
|
|
ended 30 June |
|
|
|
|
2009 |
|
2008 |
|
|
|
|
|
|
Sales of electricity |
18,288,619 |
|
16,959,162 |
|
Heat supply |
175,767 |
|
113,794 |
|
Sales of coal |
2,117,230 |
|
209,117 |
|
Transportation service fees |
24,751 |
|
27,683 |
|
Others |
77,394 |
|
85,809 |
|
|
|
|
|
|
|
20,683,761 |
|
17,395,565 |
|
|
|
|
|
Executive directors and certain senior management of the Company perform the function as chief operating decision makers (collectively referred to as the 'senior management'). The senior management reviews the internal reporting of the Company and its subsidiaries 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, chemical and coal separately. Other operating activities include investments in transportation services, financial services, etc., and are included in 'other segments'.
Senior management assesses the performance of the operating segments based on a measure of profit before income tax (expense)/benefit prepared under PRC accounting standards.
Segment assets exclude deferred income tax assets. Segment liabilities exclude the current income tax liabilities and deferred income 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.
|
|
|
|
|
|
|
(Under PRC GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
discontinued |
|
|
|
Power |
|
|
|
Total |
operations |
|
|
|
generation |
Chemical |
Coal |
Other |
continuing |
(coal |
|
|
|
segment |
segment |
segment |
segments |
operations |
segment) |
Total |
|
|
|
|
|
|
|
|
|
|
For the six months ended 30 June 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
|
|
|
|
|
|
|
Total revenue |
18,498,130 |
1,540 |
2,355,372 |
- |
20,855,042 |
- |
20,855,042 |
|
Inter-segment revenue |
(2,648) |
- |
(168,633) |
- |
(171,281) |
- |
(171,281) |
|
|
|
|
|
|
|
|
|
|
External revenue |
18,495,482 |
1,540 |
2,186,739 |
- |
20,683,761 |
- |
20,683,761 |
|
|
|
|
|
|
|
|
|
|
Segment results |
1,118,938 |
(31,599) |
63,245 |
86,396 |
1,236,980 |
40,000 |
1,276,980 |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortisation |
(3,540,331) |
(1,624) |
(20,786) |
- |
(3,562,741) |
- |
(3,562,741) |
|
Net gain on disposal of property, |
|
|
|
|
|
|
|
|
plant and equipment |
19,406 |
- |
- |
- |
19,406 |
- |
19,406 |
|
Discontinued operations |
- |
- |
- |
- |
- |
40,000 |
40,000 |
|
Interest income |
15,411 |
3,083 |
1,019 |
- |
19,513 |
- |
19,513 |
|
Interest expense |
(1,955,383) |
- |
(11,164) |
- |
(1,966,547) |
- |
(1,966,547) |
|
Share of post-tax (loss)/profit of |
|
|
|
|
|
|
|
|
jointly controlled entities |
(24,892) |
- |
2,382 |
- |
(22,510) |
- |
(22,510) |
|
Share of post-tax (loss)/profit of associates |
(52,706) |
- |
126,998 |
56,223 |
130,515 |
- |
130,515 |
|
Income tax (expense)/benefit |
(237,234) |
4,204 |
14,778 |
- |
(218,252) |
- |
(218,252) |
|
|
|
|
|
|
|
(Under PRC GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
discontinued |
|
|
|
Power |
|
|
|
Total |
operations |
|
|
|
generation |
Chemical |
Coal |
Other |
continuing |
(coal |
|
|
|
segment |
segment |
segment |
segments |
operations |
segment) |
Total |
|
|
|
|
|
|
|
|
|
|
For the six months ended 30 June 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
|
|
|
|
|
|
|
Total revenue |
17,111,579 |
1,662 |
5,202,957 |
- |
22,316,198 |
- |
22,316,198 |
|
Inter-segment revenue |
(835) |
- |
(4,919,798) |
- |
(4,920,633) |
- |
(4,920,633) |
|
|
|
|
|
|
|
|
|
|
External revenue |
17,110,744 |
1,662 |
283,159 |
- |
17,395,565 |
- |
17,395,565 |
|
|
|
|
|
|
|
|
|
|
Segment results |
365,538 |
(21,734) |
189,474 |
19,455 |
552,733 |
- |
552,733 |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortisation |
(2,873,688) |
(2,670) |
(17,057) |
- |
(2,893,415) |
- |
(2,893,415) |
|
Net loss on disposal of property, |
|
|
|
|
|
|
|
|
plant and equipment |
(2,510) |
- |
- |
- |
(2,510) |
- |
(2,510) |
|
Interest income |
29,353 |
663 |
1,302 |
- |
31,318 |
- |
31,318 |
|
Interest expense |
(1,629,527) |
(25) |
(18,227) |
- |
(1,647,779) |
- |
(1,647,779) |
|
Share of post-tax profit of |
|
|
|
|
|
|
|
|
jointly controlled entities |
- |
- |
15,834 |
- |
15,834 |
- |
15,834 |
|
Share of post-tax profit of associates |
6,179 |
- |
102,375 |
19,455 |
128,009 |
- |
128,009 |
|
Income tax benefit/(expense) |
50,373 |
- |
(19,831) |
- |
30,542 |
- |
30,542 |
|
|
|
|
|
|
|
(Under PRC GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
discontinued |
|
|
|
Power |
|
|
|
Total |
operations |
|
|
|
generation |
Chemical |
Coal |
Other |
continuing |
(coal |
|
|
|
segment |
segment |
segment |
segments |
operations |
segment) |
Total |
|
|
|
|
|
|
|
|
|
|
30 June 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
149,324,146 |
20,732,165 |
10,219,146 |
1,453,530 |
181,728,987 |
- |
181,728,987 |
|
|
|
|
|
|
|
|
|
|
Including: |
|
|
|
|
|
|
|
|
Investments in jointly controlled entities |
731,299 |
- |
826,112 |
- |
1,557,411 |
- |
1,557,411 |
|
Investments in associates |
294,283 |
2,637 |
1,337,877 |
659,636 |
2,294,433 |
- |
2,294,433 |
|
Additions to non-current assets |
|
|
|
|
|
|
|
|
(other than financial assets and |
|
|
|
|
|
|
|
|
deferred income tax assets) |
8,890,491 |
2,234,447 |
891,505 |
- |
12,016,443 |
- |
12,016,443 |
|
|
|
|
|
|
|
|
|
|
Segment liabilities |
124,849,184 |
19,624,102 |
7,512,390 |
- |
151,985,676 |
- |
151,985,676 |
|
|
|
|
|
|
|
|
|
|
31 December 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
142,560,838 |
17,978,028 |
8,166,766 |
1,122,703 |
169,828,335 |
1,132,146 |
170,960,481 |
|
|
|
|
|
|
|
|
|
|
Including: |
|
|
|
|
|
|
|
|
Investments in jointly controlled entities |
412,991 |
- |
814,015 |
- |
1,227,006 |
- |
1,227,006 |
|
Investments in associates |
343,628 |
2,637 |
1,173,648 |
553,303 |
2,073,216 |
- |
2,073,216 |
|
Additions to non-current assets |
|
|
|
|
|
|
|
|
(other than financial assets and |
|
|
|
|
|
|
|
|
deferred income tax assets) |
29,158,320 |
9,599,891 |
5,188,059 |
- |
43,946,270 |
747,626 |
44,693,896 |
|
|
|
|
|
|
|
|
|
|
Segment liabilities |
116,607,970 |
16,606,693 |
6,939,774 |
- |
140,154,437 |
7,700 |
140,162,137 |
A reconciliation of segment results to profit before income tax (expense)/benefits presented in the unaudited condensed consolidated interim statement of comprehensive income is provided as follow:
|
|
For the six months |
|
|
|
ended 30 June |
|
|
|
2009 |
2008 |
|
|
|
|
|
Segment results |
1,276,980 |
552,733 |
|
|
|
|
|
Reconciling items: |
|
|
|
Elimination among segments |
(2,525) |
(1,833) |
|
IFRS adjustment on reversal of general provision on mining funds |
86,491 |
76,702 |
|
Other IFRS adjustments |
(15,006) |
(33,748) |
|
|
|
|
|
Profit before income tax (expense)/benefit per consolidated |
|
|
|
statement of comprehensive income |
1,345,940 |
593,854 |
A reconciliation of total segment assets to total assets presented in unaudited condensed consolidated interim balance sheet is provided as follows:
|
|
30 June |
31 December |
|
|
2009 |
2008 |
|
|
|
|
|
Total segment assets |
181,728,987 |
170,960,481 |
|
|
|
|
|
Reconciling items: |
|
|
|
Deferred income tax assets |
738,122 |
686,703 |
|
Elimination between segments |
(16,685,490) |
(14,418,695) |
|
IFRS adjustment on reversal of general provision on mining funds |
75,569 |
52,268 |
|
Reclassification of value-added tax recoverables |
764,642 |
- |
|
Other IFRS adjustments |
69,233 |
110,860 |
|
|
|
|
|
Total assets per consolidated balance sheet |
166,691,063 |
157,391,617 |
A reconciliation of total segment liabilities to total liabilities presented in unaudited condensed consolidated interim balance sheet is provided as follows:
|
|
30 June |
31 December |
|
|
2009 |
2008 |
|
|
|
|
|
Total segment liabilities |
151,985,676 |
140,162,137 |
|
|
|
|
|
Reconciling items: |
|
|
|
Current income tax liabilities |
104,232 |
423,755 |
|
Deferred income tax liabilities-continuing operations |
365,330 |
370,333 |
|
Deferred income tax liabilities-discontinued operations |
- |
136,247 |
|
Elimination among segments |
(16,681,771) |
(14,370,529) |
|
Reclassification of value-added tax recoverable |
764,642 |
- |
|
Other IFRS adjustments |
5,443 |
25,207 |
|
|
|
|
|
Total liabilities per consolidated balance sheet |
136,543,552 |
126,747,150 |
Reconciliations of other material items are provided as follows:
|
|
|
IFRS |
|
Total per |
|
|
|
adjustments |
|
consolidated |
|
|
|
on reversal of |
|
statements of |
|
|
Total of |
general |
|
comprehensive |
|
|
reportable |
provision on |
Other IFRS |
income/ |
|
|
segments |
mining funds |
adjustments |
balance sheet |
|
|
|
|
|
|
|
For the six months ended 30 June 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of post-tax (loss)/profit of |
|
|
|
|
|
jointly controlled entities |
(22,510) |
15,015 |
- |
(7,495) |
|
Share of post-tax profit of associates |
130,515 |
55,232 |
- |
185,747 |
|
Income tax expense |
(218,252) |
(4,061) |
(2,796) |
(225,109) |
|
|
|
|
|
|
|
For the six months ended 30 June 2008 |
|
|
|
|
|
|
|
|
|
|
|
Share of post-tax profit of |
|
|
|
|
|
jointly controlled entities |
15,834 |
8,918 |
- |
24,752 |
|
Share of post-tax profit of associates |
128,009 |
67,780 |
- |
195,789 |
|
Income tax benefit/(expense) |
30,542 |
- |
(2,412) |
28,130 |
|
|
|
|
|
|
|
30 June 2009 |
|
|
|
|
|
|
|
|
|
|
|
Investments in jointly controlled entities |
1,557,411 |
80,391 |
- |
1,637,802 |
|
Investments in associates |
2,294,433 |
(4,823) |
- |
2,289,610 |
|
|
|
|
|
|
|
31 December 2008 |
|
|
|
|
|
|
|
|
|
|
|
Investments in jointly controlled entities |
1,227,006 |
75,091 |
- |
1,302,097 |
|
Investments in associates |
2,073,216 |
(22,823) |
- |
2,050,393 |
Geographical information:
For the six months ended 30 June 2009 and 2008, all revenues from external customers are generated domestically. As at 30 June 2009, non-current assets (excluding financial assets and deferred income tax assets) amounted to Rmb148,917 million (31 December 2008: Rmb140,557 million) and Rmb84 million (31 December 2008: Rmb79 million) are located in the PRC and foreign countries, respectively.
The information of external revenue by major customers which related individual sales accounted for equals or more than 10% of the total revenue is provided as follows:
|
|
Power generation |
|
Percentage of the |
|
|
segment |
|
total revenue |
|
|
|
|
|
|
For the six months ended 30 June 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North China Grid Company Limited |
7,880,343 |
|
38.1% |
|
State Grid Corporation of China |
2,443,155 |
|
11.8% |
|
Zhejiang Electric Power Corporation |
2,079,437 |
|
10.1% |
|
|
|
|
|
|
|
12,402,935 |
|
60.0% |
|
|
|
|
|
|
For the six months ended 30 June 2008 |
|
|
|
|
|
|
|
|
|
North China Grid Company Limited |
7,870,301 |
|
45.3% |
|
State Grid Corporation of China |
2,483,957 |
|
14.3% |
|
Zhejiang Electric Power Corporation |
1,866,674 |
|
10.7% |
|
|
|
|
|
|
|
12,220,932 |
|
70.3% |
15. Income Tax Expense/(Benefit)
|
|
For the six months |
|
|
|
ended 30 June |
|
|
|
2009 |
2008 |
|
|
|
|
|
Current income tax |
128,421 |
193,002 |
|
Deferred income tax |
96,688 |
(221,132) |
|
|
|
|
|
|
225,109 |
(28,130) |
Income tax is provided on the basis of the statutory profit for financial reporting purposes, adjusted for income and expense items, which are not assessable or deductible for income tax purposes.
Upon the implementation of the new Corporate Income Tax Law from 1 January 2008, the applicable corporate income tax rate of the Company was adjusted to 25%. Those entities located in western region continue to enjoy income tax rate of 15% without any upward adjustment before 2011 when such income tax rate will change to 25% thereafter.
In addition, certain subsidiaries, being located in specially designated regions, are subject to preferential income tax rates. Moreover, certain subsidiaries are exempted from the PRC income tax for two years starting from the first year of commercial operation followed by a 50% exemption of the applicable tax rate for the next three years.
The subsidiary of the Company registered in Hong Kong applies income tax rate of 17.5%.
For the six months ended 30 June 2009, the weighted average effective tax rate applicable to the Company and its subsidiaries was approximately 16.7% (for the six months ended 30 June 2008: -4.7%). The change of weighted average effective tax rate from corresponding period of 2008 was attributable to effects of the increase in current period profitability.
16. Earnings Per Share
(a) Basic earnings per share
The calculation of basic earnings per share for profit attributable to the equity holders of the Company was based on profit attributable to equity holders of the Company and on the weighted average amount of shares outstanding during the period.
|
|
For the six months |
|
|
|
ended 30 June |
|
|
|
2009 |
2008 |
|
|
|
|
|
Profit attributable to equity holders of the Company (Rmb'000) |
721,960 |
471,757 |
|
|
|
|
|
Weighted average number of ordinary shares for |
|
|
|
basic earnings per share (shares in thousand) |
11,780,038 |
11,735,810 |
|
|
|
|
|
Basic earnings per share for profit attributable to the |
|
|
|
equity holders of the Company (Rmb) |
0.0613 |
0.0402 |
|
|
|
|
(b) Diluted earnings per share
The diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The convertible bonds are assumed to have been converted into ordinary shares and the profit attributable for the equity holders of the Company is adjusted to eliminate the interest expense less the income tax effect. There is no such dilutive effect in the first half of 2009 given no such convertible bonds outstanding in the current period.
|
|
For the six months |
|
|
|
ended 30 June |
|
|
|
2009 |
2008 |
|
|
|
|
|
Profit attributable to equity holders of the Company (Rmb'000) |
721,960 |
471,757 |
|
Interest expense on convertible bonds |
|
|
|
(net of income tax expense) (Rmb'000) |
- |
1,762 |
|
|
|
|
|
Profit used to determine diluted earnings per share (Rmb'000) |
721,960 |
473,519 |
|
|
|
|
|
Weighted average number of ordinary shares for |
|
|
|
basic earnings per share (shares in thousand) |
11,780,038 |
11,735,810 |
|
Adjustments for assumed conversion of convertible bonds |
|
|
|
(shares in thousand) |
- |
36,682 |
|
|
|
|
|
Weighted average number of ordinary shares for |
|
|
|
diluted earnings per share (shares in thousand) |
11,780,038 |
11,772,492 |
|
|
|
|
|
Diluted earnings per share for profit attributable to the |
|
|
|
equity holders of the Company (Rmb) |
0.0613 |
0.0402 |
17. Profit Appropriation
Dividends
The 2008 final dividends distribution plan of the Company was approved in the shareholder's meeting on 3 June 2009. Applying total share capital of 11,780,037,578 shares as at 31 December 2008 as the basis, cash dividends per share distributed amounted to Rmb0.11, totalling approximately Rmb1,296 million and was fully paid as at 30 June 2009.
The 2007 final dividends distribution plan of the Company was approved in the shareholder's meeting on 30 May 2008. Applying total share capital of 11,738,183,947 shares as at 30 April 2008 as the basis, cash dividends per share distributed amounted to Rmb0.12, totalling approximately Rmb1,409 million and was fully paid as at 30 June 2008.
Reserves
According to relevant regulations and guidance issued by the MOF, deferred housing benefits are charged to equity directly when incurred under PRC GAAP. To reflect the undistributable retained earnings in this financial information 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. For the six months ended 30 June 2009, approximately Rmb4 million (for the six months ended 30 June 2008: Rmb21 million) had been transferred from restricted reserve to retained earnings.
Pursuant to relevant PRC regulations, coal mining companies are required to set aside an amount to a fund for work safety and future development 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 are incurred, an equivalent amount is transferred from restricted reserve to retained earnings. For the six months ended 30 June 2009, a net amount of approximately Rmb16 million (for the six months ended 30 June 2008: nil) was transferred from retained earnings to restricted reserve.
An appropriation of approximately Rmb1,065 million (2007 final: Rmb39 million) from retained earnings to the discretionary surplus reserve for the year ended 31 December 2008 was approved by the shareholders on the general meeting held on 3 June 2009.
18. Other Gain
|
|
For the six months |
|
|
|
ended 30 June |
|
|
|
2009 |
2008 |
|
|
|
|
|
Gain on disposal of available-for-sale investments |
30,173 |
- |
|
Gain on disposal of assets and liabilities held for sale (a) |
40,000 |
- |
|
Gain on disposal of an associate (b) |
74,460 |
- |
|
|
|
|
|
|
144,633 |
- |
|
|
|
|
(a) On 22 December 2008, the Company entered into agreements with the other two shareholders of Shanxi Zhongqiang Trade Company Limited ('Zhongqiang Company'), pursuant to which the Company will withdraw the investment in Zhongqiang Company. On 27 March 2009 ('disposal date'), the transfer was completed and the Company realized a gain of Rmb40 million (Note 20(d)).
(b) The Company realised a gain on disposal of a 49% equity interest in Beijing Texin Datang Heat Company Limited ('Datang Texin') to Beijing District Heating Group on 30 March 2009 for a cash consideration of Rmb87.1 million.
19. Related Parties and Transactions
(a) The related parties of the Company and its subsidiaries are as follows:
|
Names of related parties |
Nature of relationship |
|
|
|
|
Related parties in which the Company has no equity interest: |
|
|
|
|
|
China Datang |
Ultimate parent company |
|
China National Water Resources and Electric Power |
Subsidiary of China Datang |
|
Materials and Equipment Co., Ltd. |
|
|
('China Water Resources and Power') |
|
|
China Datang Technologies and Engineering Co., Ltd. |
Subsidiary of China Datang |
|
('Datang Technologies') |
|
|
Datang Gansu Power Generation Co., Ltd. |
Subsidiary of China Datang |
|
Liancheng Power Plant ('Datang Gansu Liancheng Power') |
|
|
Datang Power Fuel Co., Ltd. ('Datang Power Fuel') |
Subsidiary of China Datang |
|
Yunnan Datang Honghe Power Fuel Co., Ltd. |
Subsidiary of an associate |
|
('Yunnan Datang Fuel') |
|
|
Other State-controlled Enterprises |
Related parties of the Company |
|
|
|
|
Related parties in which the Company has equity interest: |
|
|
|
|
|
Kailuan (Group) Yuzhou Mining Company Limited |
Jointly controlled entity |
|
('Yuzhou Mining Company') |
|
|
Hebei Yuzhou Energy Multiple Development Company Limited |
Jointly controlled entity |
|
('Yuzhou Energy') |
|
|
North China Electric Power Research Institute Company Limited |
Associate |
|
('NCEPR') |
|
|
Datang Texin |
Associate |
|
Tongmei Datang Tashan Power Generation Company Limited |
Associate |
|
('Tashan Power Company') |
|
|
Datang Finance |
Associate |
|
Inner Mongolia Datang Tongfang Silicon and |
Associate |
|
Aluminium Technology Company Limited |
|
|
('Tongfang Silicon and Aluminium') |
|
|
Tangshan Huaxia Datang Power Fuel Company Limited |
Associate |
|
('Huaxia Datang') |
|
|
Yunnan Datang International Deqin Hydropower Development |
Associate |
|
Company Limited ('Deqin Hydropower') |
|
|
Tongmei Datang Tashan Coal Mine Company Limited |
Associate |
|
('Tashan Coal Mine') |
|
(b) The following is a summary of the major related party transactions undertaken by the Company and its subsidiaries during the period:
|
|
For the six months |
|
|
|
ended 30 June |
|
|
|
2009 |
2008 |
|
|
|
|
|
Ash disposal fee to China Datang |
28,946 |
28,946 |
|
Rental expense for buildings to China Datang |
3,614 |
3,614 |
|
Technical support, assistance and testing service fee to NCEPR |
26,864 |
18,255 |
|
Sales of heat to Datang Texin |
94,260 |
58,053 |
|
Fuel management fee to Datang Power Fuel |
1,260 |
4,852 |
|
Interest expense to Datang Finance |
53,315 |
76,186 |
|
Rental expense for public facility to |
|
|
|
Datang Gansu Liancheng Power |
7,500 |
- |
|
Purchases of materials and fuel from |
|
|
|
Datang Gansu Liancheng Power |
429 |
2,569 |
|
Purchases of power generation quota from |
|
|
|
Datang Gansu Liancheng Power |
- |
2,392 |
|
Purchases of equipment from Datang Technologies |
3,789 |
- |
|
Sales of equipment to China Water Resources and Power |
6,649 |
68,371 |
|
Agency commission paid to China Water Resources and |
|
|
|
Power for equipment purchases |
4,027 |
7,850 |
|
Interest income from Tongfang Silicon and Aluminium |
1,763 |
1,533 |
|
Sales of power to Tongfang Silicon and Aluminium |
1,208 |
- |
|
Interest income from Datang Finance |
3,764 |
6,333 |
|
Purchases of coal from Yunnan Datang Fuel |
177,478 |
- |
|
Purchases of coal from Yuzhou Mining Company |
153,904 |
125,406 |
|
Interest income from Deqin Hydropower |
41 |
- |
As at 30 June 2009, China Datang and the other minority shareholders of subsidiaries of the Company provided guarantees for loans of the Company and its subsidiaries amounting to Rmb666 million and Rmb880 million (31 December 2008: Rmb696 million and Rmb1,567 million), respectively (Notes 9 and 13).
As at 30 June 2009, the Company provided guarantees for the loans borrowed by Tashan Coal Mine, its associate, proportionate to its shareholding percentage, amounting approximately Rmb319 million. As at 31 December 2008, the Company provided guarantees for the loans borrowed by Datang Texin and Tashan Coal Mine, proportionate to its respective shareholding percentages, totalling approximately Rmb616 million.
As at 30 June 2009, the Company provided guarantees for the loans borrowed by Yuzhou Energy, a jointly controlled entity, proportionate to its shareholding percentage, totalling approximately Rmb542 million (31 December 2008: Rmb542 million).
As at 30 June 2009, Datang Finance provided borrowing facilities of Rmb4.5 billion (31 December 2008: Rmb4.5 billion) to the Company and its subsidiaries, including which undrawn portion of approximately Rmb1.52 billion (31 December 2008: Rmb0.98 billion) was of certain restricted terms attached.
Transactions with other state-controlled entities
The PRC government controls a significant portion of the assets and a substantial number of entities including China Datang and its subsidiaries. Apart from the transactions with China Datang and its subsidiaries disclosed above, the Company and its subsidiaries also conduct a majority of their businesses with these other state-controlled entities that are also regarded as related party transactions in accordance with IAS 24.
Many state-controlled entities have a multi-layered and complicated corporate structure and the ownership structures change over time as a result of transfers and privatisation programs. Nevertheless, management believes that the Company and its subsidiaries have provided meaningful disclosures of related party transactions, with inclusion of the following disclosures of material transactions with other state-controlled entities.
|
|
For the six months |
|
|
|
ended 30 June |
|
|
|
2009 |
2008 |
|
|
|
|
|
Sales of electricity |
18,414,462 |
17,042,761 |
|
Sales of heat |
81,507 |
55,741 |
|
Interest income from state-controlled banks/non-bank |
|
|
|
financial institutions |
19,882 |
31,318 |
|
Interest expense on loans borrowed from state-controlled |
|
|
|
banks/non-bank financial institutions |
2,940,644 |
2,764,874 |
|
Purchases of property, plant and equipment |
|
|
|
(including construction-in-progress) |
6,418,170 |
11,748,122 |
|
Purchases of fuel |
6,758,379 |
8,305,685 |
|
Purchases of spare parts and consumable supplies |
96,068 |
113,648 |
|
Drawdown of short-term loans from state-controlled |
|
|
|
banks/non-bank financial institutions |
12,960,448 |
27,859,760 |
|
Drawdown of long-term loans borrowed from |
|
|
|
state-controlled banks/non-bank financial institutions |
24,901,821 |
12,650,330 |
As at 30 June 2009, loans of Rmb633 million (31 December 2008: Rmb1,215 million) were guaranteed by other state-controlled entities.
As at 30 June 2009, the Company provided guarantees for the loans borrowed by other state-controlled entity of Rmb228 million (31 December 2008: nil).
(c) Key management personnel compensation
|
|
For the six months ended 30 June |
|
|
|
||
|
|
2009 |
2008 |
|
|
|
|
|
Basic salaries and allowances |
554 |
556 |
|
Bonus |
1,776 |
806 |
|
Retirement benefits |
19 |
54 |
|
Other benefits |
666 |
806 |
|
|
|
|
|
|
3,015 |
2,222 |
20. Supplemental Financial Information
(a) Condensed consolidated interim balance sheet
|
|
30 June |
31 December |
|
|
2009 |
2008 |
|
|
|
|
|
Net current liabilities |
(28,819,444) |
(38,336,046) |
|
Total assets less current liabilities |
122,020,192 |
103,815,737 |
(b) Condensed consolidated interim statement of comprehensive income
|
|
For the six months ended 30 June |
|
|
|
||
|
|
2009 |
2008 |
|
|
|
|
|
Interest expense |
3,335,988 |
2,927,621 |
|
Less: amount capitalised in property, plant and equipment |
(1,369,441) |
(1,279,842) |
|
|
|
|
|
|
1,966,547 |
1,647,779 |
|
Exchange gain, net |
(222) |
(138,136) |
|
Fair value loss on an interest rate swap |
- |
36,683 |
|
Others |
41,077 |
42,527 |
|
|
|
|
|
Finance costs |
2,007,402 |
1,588,853 |
|
|
|
|
|
Cost of inventories |
|
|
|
- Fuel for power generation |
9,349,143 |
9,843,501 |
|
- Fuel for coal sales |
1,978,614 |
213,115 |
|
- Spare parts and consumable supplies |
330,801 |
332,551 |
|
|
|
|
|
Amortisation of intangible assets |
4,125 |
6,314 |
|
|
|
|
|
Expense off of land use rights |
8,832 |
8,928 |
|
|
|
|
|
Amortisation of deferred housing benefits |
15,006 |
33,748 |
|
|
|
|
|
Donation |
- |
3,000 |
|
|
|
|
(c) Condensed consolidated interim cash flow statement
|
|
For the six months ended 30 June |
|
|
|
||
|
|
2009 |
2008 |
|
|
|
|
|
Investing activities, including: |
|
|
|
Purchases of property, plant and equipment |
(11,387,698) |
(13,104,861) |
|
|
|
|
|
Financing activities, including: |
|
|
|
Drawdown of short-term loans |
17,992,146 |
27,859,760 |
|
Repayments of short-term loans |
(25,522,761) |
(20,571,836) |
|
Drawdown of long-term loans |
26,931,470 |
13,945,290 |
|
Repayments of long-term loans |
(14,004,975) |
(3,118,259) |
|
Issuance of medium-term notes |
3,000,000 |
- |
(d) Disposal of assets and liabilities held for sale
|
Cash and cash equivalents received for the six months ended 30 June 2009 |
300,000 |
|
Less: Cash and cash equivalents owned by Zhongqiang Company |
(177,207) |
|
|
|
|
Net cash flow from this disposal for the six months ended 30 June 2009 |
122,793 |
|
|
|
|
The assets and liabilities of Zhongqiang Company on the disposal date are as follows: |
|
|
|
|
|
Assets: |
|
|
- Property, plant and equipment |
117,872 |
|
- Intangible assets |
545,129 |
|
- Other current assets |
385,433 |
|
|
|
|
|
1,048,434 |
|
|
|
|
Liabilities: |
|
|
- Accounts payable and accrued liabilities |
6,032 |
|
- Non-current liabilities |
137,916 |
|
|
|
|
|
143,948 |
|
|
|
|
Gain on disposal: |
|
|
|
|
|
Disposal proceeds |
585,000 |
|
|
|
|
Net assets |
904,486 |
|
Equity interest |
51% |
|
|
|
|
Net assets attributable to the Company |
461,288 |
|
Goodwill |
83,712 |
|
|
|
|
Share of net assets disposed |
545,000 |
|
|
|
|
Gain from this disposal |
40,000 |
21. Commitments
(a) Capital commitments
As at 30 June 2009, the Company had capital commitments related to investments in subsidiaries, jointly controlled entities, associates and other investees amounted to Rmb13,530 million (31 December 2008: Rmb14,390 million). In addition, capital commitments of the Company and its subsidiaries in relation to the construction and renovation of the electric utility plants not provided for in the balance sheet were as follows:
|
|
30 June |
31 December |
|
|
2009 |
2008 |
|
|
|
|
|
Contracted but not provided for |
28,566,385 |
29,009,883 |
|
Authorised but not contracted for |
29,308,043 |
16,142,760 |
|
|
|
|
|
|
57,874,428 |
45,152,643 |
A substantial portion of the above capital commitments is in relation to a coal mining project for which the Company and its subsidiaries have not yet obtained the relevant mining license. If the mining license is not obtained at the end of the exploration work, there will be no capital commitment for this coal mining project.
(b) Operating lease commitments
Total future minimum lease payments under non-cancellable operating lease in relation to buildings were as follows:
|
|
30 June |
31 December |
|
|
2009 |
2008 |
|
|
|
|
|
Within one year |
28,333 |
11,483 |
|
Between one to five years |
35,048 |
30,884 |
|
Over five years |
21,684 |
21,683 |
|
|
|
|
|
|
85,065 |
64,050 |
22. Financial Guarantees
|
|
30 June |
31 December |
|
|
2009 |
2008 |
|
|
|
|
|
Guarantees for loan facilities |
|
|
|
|
|
|
|
- granted to associates |
319,480 |
615,930 |
|
|
|
|
|
- granted to a jointly controlled entity |
541,500 |
541,500 |
|
|
|
|
|
- granted to other investees |
167,250 |
167,250 |
|
|
|
|
|
- granted to other state-controlled entity |
227,850 |
- |
Based on historical experience, no claims have been made against the Company and its subsidiaries since the dates of granting the financial guarantees described above.
23. Event after Reporting Period
On 13 August 2009, the Company announced to issue corporate bonds amounting to Rmb3 billion with maturity of 10 years. The pre-determined range of annual interest rate is between 4.7% and 5.0%. These corporate bonds are denominated in Rmb and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. Up to the date of this financial information authorised for issue, this issuance has not been completed.
Supplemental Information (Unaudited)
For The Six Months Ended 30 June 2009
(Amounts expressed in thousands of Rmb unless otherwise stated)
Net assets and Net Profit Reconciliation between PRC GAAP and IFRS
The unaudited condensed consolidated interim financial information, which is prepared by the Company and its subsidiaries in conformity with IFRS, differ in certain respects from PRC GAAP. Major differences between IFRS and PRC GAAP, which affect the net assets and net profit of the Company and its subsidiaries, are summarised as follows:
|
|
|
Net assets |
|
|
|
|
30 June |
31 December |
|
|
|
2009 |
2008 |
|
|
|
|
|
|
Net assets under IFRS |
|
30,147,511 |
30,644,467 |
|
|
|
|
|
|
Impact of PRC GAAP adjustments: |
|
|
|
|
Difference in the commencement of depreciation of property, |
|
|
|
|
plant and equipment |
(a) |
106,466 |
106,466 |
|
Difference in accounting treatment on monetary housing benefits |
(b) |
(178,462) |
(193,468) |
|
Difference in accounting treatment on mining funds |
(d) |
(75,569) |
(52,268) |
|
Applicable deferred income tax impact of the |
|
|
|
|
above GAAP differences |
(e) |
8,206 |
1,349 |
|
|
|
|
|
|
Net assets under PRC GAAP |
|
30,008,152 |
30,506,546 |
|
|
|
Net profit |
|
|
|
|
For the six months |
|
|
|
|
ended 30 June |
|
|
|
|
2009 |
2008 |
|
|
|
|
|
|
Profit under IFRS |
|
1,120,831 |
621,984 |
|
|
|
|
|
|
Impact of PRC GAAP adjustments: |
|
|
|
|
Difference in accounting treatment on monetary housing benefits |
(b) |
15,006 |
15,075 |
|
Difference in the recognition policy on housing |
|
|
|
|
benefits to the employees |
(c) |
- |
18,673 |
|
Difference in accounting treatment on mining funds |
(d) |
(86,491) |
(76,702) |
|
Applicable deferred income tax impact of the |
|
|
|
|
above GAAP differences |
(e) |
6,857 |
2,412 |
|
|
|
|
|
|
Net profit under PRC GAAP |
|
1,056,203 |
581,442 |
(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 IFRS, the monetary housing benefits provided to employees who started work before 31 December 1998 are recorded as deferred assets and amortised on a straight-line basis over the estimated service lives of relevant employees.
Under PRC GAAP, these benefits were directly deducted from the retained earnings and statutory public welfare fund after approval by the general meeting of the Company and its subsidiaries.
(c) Difference in the recognition policy on housing benefits to the employees
The Company and its subsidiaries provided housing to its employees at a preferential price. The difference between the selling price and the cost of housing is considered to be a housing benefit during the related periods and is borne by the Company and its subsidiaries.
For PRC statutory reporting purposes, in accordance with the relevant regulations issued by the MOF of the PRC, the total housing benefits provided by the Company and its subsidiaries before 6 September 2000 should be directly deducted from the statutory public welfare fund and those provided after 6 September 2000 are charged to non-operating expenses as incurred. Under IFRS, the housing benefits provided by the Company and its subsidiaries are recognised on a straight-line basis over the estimated remaining average service lives of the employees.
(d) 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 statement of comprehensive income 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 Company. 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.
(e) Applicable deferred income tax impact on the above GAAP differences
This represents the deferred income tax effect on the above GAAP differences where applicable.
This information is provided by RNS
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