First Quarterly Report of 200

RNS Number : 2631R

Datang Intl Power Generation Co Ld

28 April 2009

 



Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

DATANG INTERNATIONAL POWER GENERATION CO., LTD.

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

(Stock Code: 991)

PRICE-SENSITIVE INFORMATION/

OVERSEAS REGULATORY ANNOUNCEMENT

FIRST QUARTERLY REPORT OF 2009

In accordance with the requirements of the China Securities Regulatory Commission, Datang International Power Generation Co., Ltd. (the 'Company') is required to publish quarterly reports for the first and third quarters of the year.

The financial information contained in this quarterly report is unaudited, and was prepared in accordance with the PRC GAAP.

This announcement is made pursuant to Rules 13.09(1) and (2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

1.    IMPORTANT NOTICE

1.1    The board of directors (the 'Board'), the supervisory committee, the directors, the supervisors and senior management members of the Company warrant that there are no false representations and misleading statements contained in, or material omissions from, this report, and severally and jointly accept the responsibility for the truthfulness, accuracy and completeness of the content hereof.

1.2    All directors of the Company attended the Board meeting.

1.3    The first quarterly financial report of the Company is unaudited.

1.4    Mr. Zhai Ruoyu, the person-in-charge of the Company, Mr. Wang Xianzhou, the person-in-charge of accounting matters, and Mr. Liu Heping, the person-in-charge of the accounting institution (head of accounting function), hereby make representation in respect of the truthfulness and completeness of the financial statements contained in this quarterly report.

2.    BASIC INFORMATION OF THE COMPANY

2.1    Major accounting data and financial indicators                                                                                                    Currency: RMB

	At the end of the reporting period	At the end of the previous reporting period	Increase/decrease  at the end of the reporting period as compared to the end of the previous year (%)
Total assets (RMB'000)	160,431,065	157,280,757	2.00
Interests of equity holders (or Interests of shareholders) (RMB'000)	30,203,179	30,550,780	-1.14
Net assets per share attributable to shareholders of the Company (RMB)	2.20	2.20	0.00

			Beginning of the year to the end of the reporting period (Jan - Mar)			Increase/decrease  as compared to the corresponding period of the previous year(%)
Net cash flows generated from operating activities (RMB'000)			1,850,851			-16.82
Net cash flows per share generated from operating activities (RMB)			0.16			-15.79
	The reporting period (Jan-Mar)			Beginning of  the year to  the end of the reporting period (Jan - Mar)		Increase/decrease of the  reporting period  as compared to the corresponding period of the previous year (%)
Net profit attributable to shareholders of the Company (RMB'000)	34,933			34,933		-92.02
Basic earnings per share (RMB)	0.003			0.003		-92.50
Basic earnings per share excluding non-recurring profit/loss (RMB)	-0.005			-0.005		-112.50
Diluted earnings per share (RMB)	0.003			0.003		-92.50
Return on net assets (fully diluted) (%)	0.13%			0.13%		a decrease of 1.40 pct. pts.
Return on net assets excluding non-recurring profit/loss (fully diluted) (%)	-0.25%			-0.25%		a decrease of 1.78 pct. pts.
Excluding non-recurring profit/loss items and amounts:
Non-recurring profit/loss items		Amount from the beginning of the year to the end of the reporting period (Jan-Mar)  (RMB'000)			Explanation
Gains and losses from disposal of non-current assets		114,557			Gain on disposal of long-term equity investments
Government's grants accounted for in the profit and loss account for the reporting period (except for the grants that are closely related to the Company's ordinary course of business; and that are continuously enjoyed in compliance with the State's policies and regulations in an amount or quantity specified by certain standards)		7,232			Government's grants for the reporting period
Profit/loss gained from loans entrusted to external entities		816			Interest income from loans entrusted to associates
Net amount of other non-operating income and expenses excluding the above-mentioned items		11,492			Net amount of other non-operating income and expenses
Effects of minority shareholders' profit/loss		-2,935			Impact of above items on minority interests
Impact of income tax		-32,438			Impact of above items on income tax expenses
Total		98,724

2.2    Total number of shareholders as at the end of the reporting period and table of shareholding of the top ten holders of shares free of selling restrictions

Unit: share

Total number of shareholders at the end of the reporting period		267,539
Shareholding of the top ten holders of circulating shares free of selling restrictions
Name of shareholder (Full name)	Number of circulating shares held notsubject to selling restrictions as atthe reporting period		Type of share
HKSCC NOMINEES LIMITED	3,303,291,850		Overseas-listed foreign shares
Beijing Energy Investment (Group) Company	1,343,584,800		RMB ordinary shares
Hebei Construction Investment Company	1,303,878,100		RMB ordinary shares
Tianjin Jinneng Investment Company	1,119,654,000		RMB ordinary shares
UBS AG	10,949,562		RMB ordinary shares
Guotai Junan -China Construction Bank-The Hongkong and Shanghai Banking Corporation Limited  (國泰君安-建行-香港上海滙豐銀行有限公司)	10,493,655		RMB ordinary shares
Shenyin Wanguo - HSBC -MERRILL LYNCH INTERNATIONAL	10,396,939		RMB ordinary shares
Shenyin Wanguo - Chartered - BARCLAYS BANK PLC	8,500,998		RMB ordinary shares
Citic Securities -Industrial and Commercial Bank of China - CREDIT SUISSE （HONG KONG） LIMITED (中信證券-工行-CREDIT SUISSE (HONG KONG) LIMITED)	8,497,346		RMB ordinary shares
ABN AMRO BANK N.V.	8,379,864		RMB ordinary shares

3.    SIGNIFICANT MATTERS

3.1    The details of and the reasons for the material changes in the major financial statement items and financial indicators of the Company Applicable   Not applicable

(1)    Notes receivable of the Company and its subsidiaries as at the end of the reporting period decreased by approximately 73% over the beginning of the reporting period. This was mainly because enhanced efforts were made to note settlement for the purpose of recovery of funds. 

(2)    Prepayments of the Company and its subsidiaries as at the end of the reporting period increased by approximately 83% over the beginning of the reporting period. This was mainly because various coal-fired power plants of the Company have not reached consensus on the coal prices under their respective plans with the suppliers for the reporting period. Accordingly, payments were temporarily settled in the form of prepayments at the contract prices in 2008. 

(3)    Other current assets of the Company and its subsidiaries as at the end of the reporting period decreased by approximately 98% over the beginning of the reporting period. This was mainly because the Company disposed of its subsidiary, Shanxi Zhongqiang Trading Company Limited, during the reporting period. 

(4)    Advances from customers of the Company and its subsidiaries as at the end of the reporting period decreased by approximately 84% over the beginning of the reporting period. This was mainly because, the advances from the disposal of equity interests in Shanxi Zhongqiang Trading Company Limited at the end of the previous year were settled during the reporting period. 

(5)    The taxes payable of the Company and its subsidiaries as at the end of the reporting period decreased by approximately 87% over the beginning of the reporting period. This was mainly because the Company and its subsidiaries paid enterprise income tax for the previous year during the reporting period.

(6)    Other payables of the Company and its subsidiaries as at the end of the reporting period increased by approximately 48% over the beginning of the reporting period. This was mainly because the Company and its subsidiaries did not pay but have already accrued expenses such as environmental protection expenses and repair expenses for the reporting period.

(7)    Debentures payable of the Company and its subsidiaries as at the end of the reporting period increased by 100% over the beginning of the reporting period. This was mainly because the Company issued 5-year medium-term note of RMB3 billion during the reporting period. 

(8)    Net finance costs of the Company and its subsidiaries for the reporting period increased by approximately 51% over the corresponding period of the previous year. This was mainly because the principal of borrowings for the reporting period increased and certain completed power generating units were classified as fixed assets and the interests previously capitalised were changed into expenses during the reporting period.

(9)    Investment income of the Company and its subsidiaries for the reporting period increased by approximately 1,806% over the corresponding period of the previous year. This was mainly because the Company gained an investment income of approximately RMB70 million from the disposal of the equity interest in Beijing Texin Datang Heat Company Limited during the reporting period.

(10)    Non-operating income of the Company and its subsidiaries for the reporting period increased by approximately 2,928% over the corresponding period of the previous year. This was mainly because the Company obtained a gain from the disposal of Shanxi Zhongqiang Trading Company Limited, a subsidiary of the Company, during the reporting period. 

(11)    Income tax expenses of the Company and its subsidiaries for the reporting period decreased by approximately 74% over the corresponding period of the previous year. This was mainly because the impact of the decrease in power generation, the surge in coal prices and the increase in finance expenses led to decreases in profits of the Company and its subsidiaries during the reporting period.  

(12)    Net profit attributable to equity holders of the Company and its subsidiaries for the reporting period decreased by approximately 92% over the corresponding period of the previous year. This was mainly because the impact of decrease in power generation, the surge in coal prices and the increase in finance expenses led to decreases in the profits of the Company and its subsidiaries during the reporting period.  

(13)    Minority interests of the Company and its subsidiaries for the reporting period decreased by approximately 118% over the corresponding period of the previous year. This was mainly because the impact of the decrease in power generation, the surge in coal prices and the increase in finance expenses led to decreases in the profits of the Company and its subsidiaries during the reporting period.

3.2    The analysis and explanation of progress and impact of major events and solutions

  Applicable                  Not applicable

3.3    The performance of the undertakings made by the Company, shareholders and the de facto controller

  Applicable                  Not applicable

3.4    The warning and explanation in the forecast of the possible aggregate net profits from the beginning of the year to the end of the next reporting period becoming a loss or significant changes over the corresponding period of the previous year

 Applicable                  Not applicable

3.5    Status of the Implementation of the Cash Dividend Policy during the Reporting Period  

The Board has formulated the amendment proposal to the articles of association of the Company and has determined the cash dividend policy. The Board has also formulated the profit distribution proposal for the year 2008. The above-mentioned proposals will be submitted to the 2008 annual general meeting of the Company for consideration and approval. 

By Order of the Board  

Zhai Ruoyu

Chairman

  Beijing, the PRC, 27 April 2009

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

APPENDIX 

Consolidated balance sheet and balance sheet of the Company (unaudited)

31 March 2009

 (Amounts expressed in thousands of Rmb unless otherwise stated)

Assets		31 March 2009  Consolidated		31 December 2008 Consolidated		31 March 2009  The Company		31 December 2008 The Company
Current assets
Cash balance		5,252,029		5,645,375		1,778,667		2,053,885
Notes receivable		107,922		394,523		4,000		310,800
Accounts receivable		4,711,103		3,906,684		979,738		1,090,164
Prepayments		2,072,796		1,133,029		811,080		224,112
Interest receivable		576		1,848		-		-
Dividends receivable		-		-		96,357		96,357
Other receivables		1,350,640		1,268,214		1,529,594		2,708,047
Inventories		1,954,489		2,142,761		309,030		376,425
Other current assets		17,498		746,713		-		545,000
Total current assets		15,467,053		15,239,147		5,508,466		7,404,790
Non-current assets
Long-term receivables		149,547		129,454		5,255,035		5,212,655
Long-term equity investment		4,060,891		4,028,339		14,708,690		13,507,521
Fixed assets		78,914,095		75,266,574		7,657,335		12,160,462
Construction-in-progress		44,630,671		46,327,759		19,995,914		18,823,663
Construction materials		13,130,814		12,339,615		3,045,677		3,317,897
Intangible assets		2,758,604		2,729,684		1,098,973		1,097,362
Goodwill		532,796		532,796		33,561		33,561
Long-term deferred expenses		59,496		686		-		-
Deferred income tax assets		727,098		686,703		30,811		30,811
Total non-current assets		144,964,012		142,041,610		51,825,996		54,183,932
Total assets		160,431,065		157,280,757		57,334,462		61,588,722

Liabilities and shareholders' equity		31 March 2009  Consolidated		31 December 2008 Consolidated		31 March 2009  The Company		31 December 2008 The Company
Current liabilities
Short-term loans		26,594,694		29,584,108		9,991,537		13,302,587
Notes payable		1,631,470		1,470,648		-		-
Accounts payable		10,315,705		10,688,451		2,178,413		2,602,900
Advances from customers		16,873		104,355		-		240,000
Salary payable		34,300		27,513		8,695		7,840
Taxes payable		51,404		381,660		41,531		401,718
Interest payable		492,527		421,878		336,090		233,653
Dividends payable		145		145		-		-
Other payables		646,849		438,005		238,895		425,543
Non-current liabilities due within one year		4,027,385		6,821,589		512,500		712,500
Other current liabilities		3,500,000		3,637,527		3,500,000		3,500,000
Total current liabilities		47,311,352		53,575,879		16,807,661		21,426,741
Non-current liabilities
Long-term loans		74,955,542		68,130,422		10,857,500		13,697,500
Debentures payable		3,000,000		-		3,000,000		-
Long-term payables		4,103,548		4,170,097		-		-
Deferred income tax liabilities		378,874		378,367		33,984		34,413
Other non-current liabilities		478,570		475,212		312,754		318,336
Total non-current liabilities		82,916,534		73,154,098		14,204,238		14,050,249
Total liabilities		130,227,886		126,729,977		31,011,899		35,476,990
Shareholders' equity
Share capital		11,780,038		11,780,038		11,780,038		11,780,038
Capital surplus		1,682,946		1,665,397		1,737,726		1,720,178
Surplus reserves		9,751,916		9,746,126		9,751,423		9,751,423
Undistributed profits		2,730,509		2,701,364		3,053,376		2,860,093
Currency translation differences		16,148		17,036		-		-
Total shareholders' equity attributable to the equity holders of the Company		25,961,557		25,909,961		26,322,563		26,111,732
Minority interests		4,241,622		4,640,819		-		-
Total shareholders' equity		30,203,179		30,550,780		26,322,563		26,111,732
Total liabilities and shareholders' equity		160,431,065		157,280,757		57,334,462		61,588,722

  Consolidated profit and loss account and profit and loss account of the Company (unaudited) 

For the three months ended 31 March 2009

(Amounts expressed in thousands of Rmb unless otherwise stated)

						For the three months ended 31 March
Item						2009 Consolidated		2008 Consolidated (Restated)		2009 The Company		2008  The Company
1.    Operating Revenue						8,542,446		8,215,522		1,885,669		2,162,593
Less: Operating cost						(7,247,215)		(6,463,572)		(1,698,439)		(1,737,018)
				Tax and levies on principal operations		(77,756)		(83,593)		(18,317)		(24,379)
				Selling expense		(6,017)		(173)		-		-
				General and administrative expense		(292,252)		(318,414)		(122,443)		(159,629)
				Financial expenses, net		(997,182)		(662,189)		(66,418)		(10,698)
				Assets impairment loss		-		-		-		-
Add: Fair value loss						-		-		-		-
			Investment income			68,113		(3,993)		193,333		80,491
			Including: Investment income in associates and jointly controlled entities			(3,123)		(1,816)		(2,401)		15,762
2.    Operating profit						(9,863)		683,588		173,385		311,360
Add: Non-operating income						58,870		1,944		45,582		13
Less: Non-operating expenses						(144)		(2,250)		(17)		(360)
3.    Total profit						48,863		683,282		218,950		311,013
Less: Income tax						(34,614)		(132,559)		(25,666)		(57,321)
4.    Net profit						14,249		550,723		193,284		253,692
			Net profit attributable to equity holders of the Company			34,933		437,825		193,284		253,692
			Net profit attributable to shareholders of the Company Minority shareholders			(20,684)		112,898
5.    Earnings per share (Based on net profit attributable to shareholders of the parent company)
			Basic earnings per share (yuan/share)			0.003		0.04		／		／
			Diluted earnings per share (yuan/share)			0.003		0.04		／		／

  Consolidated cash flow statements and cash flow statements of the Company (unaudited) 

For the three months ended 31 March 2009

(Amounts expressed in thousands of Rmb unless otherwise stated)  

Item	For the three months ended 31 March
	2009 Consolidated	2008 Consolidated (Restated) （Note)	2009 The Company	2008  The Company
1.    Cash flows generated from operating activities
Cash received from sales of goods and services rendered	9,371,243	10,589,375	2,149,850	3,354,356
Refund of taxes and levies	47,949	1,876	-	-
Other cash received relating to operating activities	55,487	70,753	49,677	3,273
Sub-total of cash inflows	9,474,679	10,662,004	2,199,527	3,357,629
Cash paid for goods and services received	(5,891,697)	(6,326,462)	(1,676,966)	(1,406,010)
Cash paid to and on behalf of employees	(364,736)	(422,623)	(204,907)	(266,569)
Payments of all types of taxes	(1,178,916)	(1,397,777)	(524,312)	(451,385)
Other cash paid relating to operating activities	(188,479)	(289,995)	(66,915)	(110,423)
Sub-total of cash outflows	(7,623,828)	(8,436,857)	(2,473,100)	(2,234,387)
Net cash flows generated from operating activities	1,850,851	2,225,147	(273,573)	1,123,242
2.    Cash flows generated from investing activities
Cash received on disposals of investments	-	-	663,698	106,135
Cash received on investment income	723	(2,181)	112,112	78,182
Net cash received from disposals of fixed assets, intangible assets and other long-term assets	-	70,891	-	-
Net cash received on disposals of subsidiaries and other operating units	122,793	-	300,000	-
Other cash received relating to investing activities	5,214	178,152	3,887,945	300,807
Sub-total of cash inflows	128,730	246,862	4,963,755	485,124
Cash paid to acquire fixed assets, intangible assets and other long-term assets	(5,297,583)	(6,485,607)	(1,706,606)	(2,058,686)
Cash paid to acquire investments	(16,000)	(919,546)	(1,729,029)	(1,880,995)
Other cash paid relating to investing activities	(246,538)	(74,944)	(219,259)	(101,413)
Sub-total of cash outflows	(5,560,121)	(7,480,097)	(3,654,894)	(4,041,094)
Net cash flows used in investing activities	(5,431,391)	(7,233,235)	1,308,861	(3,555,970)
3.    Cash flows generated from financing activities
Cash received from investments	79,396	24,000	-	-
Cash received from borrowings	22,954,123	14,667,520	4,240,000	4,537,300
Other cash received relating to financing activities	59	2,493,193	-	38
Sub-total of cash outflows	23,033,578	17,184,713	4,240,000	4,537,338
Cash paid on repayments of borrowings	(18,009,528)	(7,946,562)	(5,200,000)	(1,400,000)
Cash paid for dividends, profit appropriation or interest expenses	(1,675,953)	(1,228,979)	(321,367)	(167,692)
Cash payments relating to other financing activities	(74,980)	(110,169)	(29,217)	-
Sub-total of cash outflows	(19,760,461)	(9,285,710)	(5,550,584)	(1,567,692)
Net cash flows generated from/(used in) financing activities	3,273,117	7,899,003	(1,310,584)	2,969,646
4.    Effect of foreign exchange rate changes on cash	1,388	(3,315)	74	(3,136)
5.    Net increase/ (decrease) in cash and cash equivalents	(306,035)	2,887,600	(275,222)	533,782
Add: cash and cash equivalents at the beginning of the year	5,369,373	3,421,861	2,053,885	1,164,857
6.    Cash and cash equivalents at the end of the year	5,063,338	6,309,461	1,778,663	1,698,639

Note: According to the CAS Interpretation No.2 issued by the Ministry of Finance of the PRC on 7 August 2008, jointly controlled entity under investment companies and investment parties are no longer allowed to be proportionately consolidated and only equity method is allowed when preparing consolidated financial statements. Accordingly, corresponding retrospective adjustments were made to the consolidated a profit and loss account and consolidated cash flow statement for the three months ended 31 March 2008.

 

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