Announcement on the Provision

RNS Number : 6046G

Datang Intl Power Generation Co Ld

24 October 2008

 

DATANG INTERNATIONAL POWER GENERATION CO., LTD.

       (a sino-foreign joint stock limited company incorporated in the People's Republic of China)

(Stock Code: 991)

OVERSEAS REGULATORY ANNOUNCEMENT

ANNOUNCEMENT ON THE PROVISION

OF GUARANTEES 

SPECIAL NOTICES:   The board of directors (the “Board”) and all directors (the “Directors”) of the Company warrant that there are no false representations or misleading statements contained in, or material omissions from, this announcement; and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this announcement.   This announcement is made pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Important notices regarding the content:

• The guaranteed party: Shanxi Datang International Yuncheng Power Generation Company Limited ('Yuncheng Power Company')

• The amount of this guarantee and the aggregate guarantee amount: The amount of this guarantee is RMB300 million.

• The aggregate guarantee amount before this guarantee was nil.

• Provision of counter-guarantee: Nil.

• The aggregate amount of external guarantees: As of 30 June 2008, the aggregate amount of external guarantees of the Company and its controlling subsidiaries amounted to RMB11,398.67 million. Such guarantees were all made for the subsidiaries, jointly-controlled entities and associates of the Company.

• The aggregate amount of overdue external guarantees: Nil.

I.   Information of the Guarantee

The 'Resolution on provision of guarantee for Shanxi Datang International Yuncheng Power Generation Company Limited' was considered at the seventeenth meeting of the sixth session of the Board of Datang International Power Generation Co., Ltd. (the 'Company'). The Board agreed that the Company shall provide a joint liability guarantee for the financing of Yuncheng Power Company, a controlling subsidiary of the Company, in proportion to the capital contribution. The guarantee amount is RMB300 million, which will be used for the replacement of bank loans and replenishment of capital. 

As the asset-to-liability ratio of Yuncheng Power Company is over 70%, this resolution will be proposed to the 2008 first extraordinary general meeting of the Company (the 'EGM') for consideration.

II.  Information of the Guaranteed Party

Yuncheng Power Company was established in 2003 with a registered capital of RMB162.125 million. Its address is Fenglingdu Economic Development Zone, Yuncheng City, Shanxi Province, the People’s Republic of China, and its scope of business includes production and sale of power, power technology consultation and services and integrated utilisation of by-products.

As of 31 December 2007, the total assets, liabilities and asset-to-liability ratio of Yuncheng Power Company were approximately RMB4,486.57 million, RMB4,373.56 million and 97.48%, respectively.

Yuncheng Power Company commenced commercial operation in January 2008. As of 30 June 2008, the total assets, total liabilities, asset-to-liability ratio and total loans of Yuncheng Power Company were approximately RMB4,815.91 million, RMB4,927.91 million, 102.33% and RMB4,233.45 million, respectively. The revenue from principal activities was approximately RMB484.89 million, net profit was approximately RMB-225.01 million (the above figures are unaudited).

III. Major Terms of the Guarantee Contract

In accordance with the relevant guarantee contract to be entered into between the Company and the Bank of China, the Company shall provide a guarantee in respect of the loan of Yuncheng Power Company in an amount of RMB300 million borrowed from the Bank of China. The guarantee covers the principal amount of the loan of RMB300 million, its interest, penalty interest, compensation, penalty, indemnities and expenses for execution of creditor's rights. The guarantee will be provided on a joint-liability basis. The guarantee period is two years from the date of expiration of the term for performance of each loan under the loan contract.

IV. Opinion of the Board

The Board is of the opinion that the bank loan in the amount of RMB300 million borrowed by Yuncheng Power Company from the Bank of China can replace short-term loans which are due and resolve the capital shortage for the purchase of fuel coal arising from rising fuel prices. The provision of the guarantee by the Company for such bank loan is in line with the requirements of the overall development of the Company and its subsidiaries. The Board agreed that the Company shall provide guarantee for the loan of Yuncheng Power Company and will propose this guarantee to the EGM for consideration and approval.

V.  Aggregate Amount of External Guarantees and Amount of Overdue Guarantees

As of 30 June 2008, the Company's aggregate amount of external guarantees was RMB11,398.67 million (unaudited), representing 33.52% of the audited net assets in the latest financial report. Such guarantees were all made for the subsidiaries, jointly-controlled entities and associates of the Company and there were no overdue guarantees.

By Order of the Board  

Zhou Gang  

Secretary to the Board

Beijing, the PRC, 23 October 2008

As at the date of this announcement, the directors of the Company are:

Zhai Ruoyu, Hu Shengmu, Cao Jingshan, Fang Qinghai, Zhou Gang, Liu Haixia, Guan Tiangang, Su Tiegang, Ye Yonghui, Li Gengsheng, Xie Songlin*, Liu Chaoan*, Yu Changchun*, Xia Qing* and Li Hengyuan*

* Independent non-executive directors

 

END

 

 

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