Proposed A Shares Issue

Datang Intl Power Generation Co Ld
17 November 2006


                    Datang International Power Generation Co., Ltd

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

                                (Stock Code: 991)

                              PROPOSED A SHARES ISSUE

SUMMARY

The Board would like to announce that the Company has submitted to the CSRC a
draft prospectus for the A Shares Issue in respect of the Company's proposed
plan of issuing A Shares. The consolidated financial information of the Group
for the Relevant Periods prepared under the PRC GAAP will be contained in the
prospectus for the A Shares Issue, of which a draft has been announced on the
CSRC website and made available for the public starting from the afternoon of 16
November 2006. In accordance with the announcement on the CSRC website, the
Public Offering Review Committee of CSRC will convene a meeting on 21 November
2006 to consider and review the Company's application of the A Shares Issue.

To enable Shareholders and investors to better understand the material
differences between the consolidated financial information of the Group for the
Relevant Periods prepared under IFRS and those prepared under PRC GAAP, this
announcement presents the consolidated financial information of the Group for
the Relevant Periods prepared under PRC GAAP and a reconciliation of the Net
Profit/Net Assets, each attributable to equity holders of the Company prepared
under PRC GAAP to those prepared under IFRS.

     
1.   PROPOSED A SHARES ISSUE

Reference is made to the announcements dated 6 May 2004, 4 May 2005 and 19 April
2006  issued by the Company and the Company's circulars dated 27 May 2004, 25
May 2005 and 3 May 2006  in respect of the Company's intention to apply to the
CSRC for the proposed A Shares Issue.      

The aggregate amount of the proposed A Shares Issue will not exceed 500,000,000
A Shares, of which not more than 150,852,380 A Shares and 46,179,300 A Shares
will be strategically placed to CDGC and TJIC, respectively. The remaining A
Shares following the strategic placements to CDGC and TJIC will be sold by way
of a combination of placing off- line to target placees with price consultation
through book-building and on-line subscription. CDGC and TJIC have already
committed in writing that they will subscribe to the shares in full and by cash
according to the determined price of the public offering.

The offer price range for the A Shares Issue will be determined through price
consultation with the targets for price consultation. Price consultation will be
conducted through a book-building process among placement targets within the
offer price range. The offer price will be determined by the results of the
price consultation through book-building and the market conditions.

The A Shares Issue is subject to the approval of the relevant regulatory
authorities including the CSRC. As such, as at the date of this announcement, no
guarantee could be made that the A Shares Issue will be approved by the relevant
regulatory authorities and will proceed. Shareholders and investors are advised
to act cautiously when trading in the H Shares.

The Company will disclose the relevant information in respect of the approval,
offer price, offer time and other details of the A Shares Issue simultaneously
in the PRC and in the newspapers of Hong Kong in accordance with the Listing
Rules.

The exact timing of the A Shares Issue is subject to the relevant approval
obtained by the Company and the market conditions, but will be carried out as
soon as possible.

The consolidated financial information of the Group prepared under PRC GAAP for
the Relevant Periods will be contained in the prospectus for the A Shares Issue,
of which a draft has been announced on the CSRC website and made available for
the public starting from the afternoon of 16 November 2006. In accordance with
the announcement on the CSRC website, the Public Offering Review Committee of
CSRC will convene a meeting on 21 November 2006 to consider and review the
Company's application of the A Shares Issue.


2.   CONSOLIDATED FINANCIAL INFORMATION OF THE GROUP FOR THE RELEVANT PERIODS
PREPARED UNDER PRC GAAP AND A RECONCILIATION OF THE NET PROFIT/NET ASSETS, EACH
ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY PREPARED UNDER PRC GAAP TO THOSE
PREPARED UNDER IFRS

To enable Shareholders and investors to better understand the material
differences between the consolidated financial information of the Group for the
Relevant Periods prepared under IFRS and those prepared under PRC GAAP, this
announcement presents the consolidated financial information of the Group for
the Relevant Periods prepared under PRC GAAP and a reconciliation of the Net
Profit/Net Assets, each attributable to equity holders of the Company prepared
under PRC GAAP to those prepared under IFRS. (The consolidated accounts of the
Group for the years ended 31 December 2003, 2004 and 2005 prepared in accordance
with IFRS were audited by PricewaterhouseCoopers, and unqualified opinions were
issued thereof. The figures for the 6 months ended 30 June 2006 prepared in
accordance with IFRS were unaudited. The consolidated accounts for the years
ended 31 December 2003, 2004 and 2005, and for the six months ended 30 June 2006
prepared in accordance with PRC GAAP have been audited by PricewaterhouseCoopers
Zhong Tian CPAs Limited Company, and standard unqualified opinions were issued
thereof.)



Consolidated Balance Sheet
(All amounts expressed in thousands of Rmb)

                                                      30 June       31 December       31 December       31 December
                                                         2006              2005              2004              2003
ASSETS
CURRENT ASSETS
  Cash and cash equivalents                         1,259,637         1,029,339         3,672,428         5,427,558
  Short-term investment                                     -                 -                 -                 -
  Notes receivable                                     10,891            64,829                 -                 -
  Dividends receivable                                  1,200                 -                 -                 -
  Interest receivable                                      19                 -                 -                 -
  Accounts receivable                               2,169,896         1,409,528         1,289,931         1,035,870
  Other receivables                                   337,075           289,605           121,687           101,227
  Prepayments                                         287,023           202,695           102,956            34,350
  Government grants                                         -                 -                 -                 -
  Inventories                                         892,014           693,019           442,615           342,834
  Deferred expenses                                     1,934                 -                 -                 -
  Current portion of long-term
    debt investments                                        -                 -                 -                 -
  Other current assets                                      -                 -                 -                 -

Total current assets                                4,959,689         3,689,015         5,629,617         6,941,839
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -
LONG-TERM INVESTMENTS
  Long-term equity investments                      1,538,356         1,099,609           851,115           380,055
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -
  Long-term debt investments                                -                 -                 -                 -

Total long-term investments                         1,538,356         1,099,609           851,115           380,055
  Including: Consolidated difference
            in value                                   54,388                 -                 -                 -
FIXED ASSETS
  Fixed assets, cost                               57,188,467        43,631,437        33,526,477        26,801,352
  Less: accumulated depreciation                  (13,947,900 )     (12,128,849 )      (9,523,176 )      (7,555,682 )

  Fixed assets, net                                43,240,567        31,502,588        24,003,301        19,245,670
  Less: Provision for impairment of
        fixed assets                                        -                 -                 -                 -

  Fixed assets, net book value                     43,240,567        31,502,588        24,003,301        19,245,670
  Leasehold improvement                                     -                 -                 -                 -
  Construction materials                            5,505,985         8,910,939         7,386,327         3,435,979
  Construction-in-progress                         17,435,531        18,539,978        10,865,397         4,926,680
  Disposal of fixed assets                                215                 -                 -                 -

Total fixed assets                                 66,182,298        58,953,505        42,255,025        27,608,329
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -
INTANGIBLE AND OTHER ASSETS
  Intangible assets                                   429,831           353,460           276,176           275,884
  Long-term deferred expenses                         100,351           177,720           107,644            23,848
  Other long-term assets                                    -                 -           100,000           100,000

Total intangible and other assets                     530,182           531,180           483,820           399,732
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -
DEFERRED TAX
  Deferred tax assets                                       -                 -                 -                 -

TOTAL ASSETS                                       73,210,525        64,273,309        49,219,577        35,329,955

LIABILITIES AND
  SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
  Short-term loans                                  8,003,766         5,717,280         5,979,560         2,860,834
  Notes payable                                       186,002                 -                 -                 -
  Accounts payable                                  5,959,080         4,079,501         2,971,467         2,001,873
  Advance from customers                                    -                 -                 -                 -
  Salary payable                                      121,350           100,000             3,605             3,350
  Welfare payable                                      54,066            46,718            68,817            59,544
  Interest payable                                     86,189            94,430            72,095            49,272
  Dividends payable                                         -                 -                 -           219,452
  Taxes payable                                       406,305           366,608           509,551           534,038
  Other levies payable                                  9,271            11,233             6,532            11,570
  Other payables                                      520,636           264,245           218,546           218,598
  Accrued expenses                                     83,927                 -                 -                 -
  Provisions                                                -                 -                 -                 -
  Deferred income                                           -                 -                 -                 -
  Current portion of long-term loans                2,159,715         2,488,884         1,106,875           829,209
  Other current liabilities                                 -                 -                 -                 -

Total current liabilities                          17,590,307        13,168,899        10,937,048         6,787,740
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -
LONG-TERM LIABILITIES
  Long-term loans                                  33,579,554        29,215,217        17,949,062        10,306,487
  Bonds payable                                     1,232,553         1,244,099         1,275,912         1,275,912
  Long-term payables                                        -                 -                 -                 -
  Government grants                                   210,942           210,942           170,177           138,928
  Other long-term liabilities                               -                 -                 -                 -

Total long-term liabilities                        35,023,049        30,670,258        19,395,151        11,721,327
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -
DEFERRED TAX
  Deferred tax liabilities                                  -                 -                 -                 -

TOTAL LIABILITIES                                  52,613,356        43,839,157        30,332,199        18,509,067
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -
MINORITY INTERESTS                                  2,560,063         2,470,093         2,058,394         1,344,612
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -
SHAREHOLDERS' EQUITY
  Share capital                                     5,162,849         5,162,849         5,162,849         5,162,849
  Capital surplus                                   3,659,467         3,659,467         3,653,421         3,653,421
  Surplus reserves                                  8,277,791         7,517,881         5,677,528         4,601,911
  Including: Statutory public
            welfare fund                                    -           559,456           464,488           256,981
  Proposed cash dividends                                   -         1,177,130         1,135,827           903,499
  Undistributed profits                               937,348           446,916         1,199,359         1,154,596
  Foreign currency translation                           (349 )            (184 )               -                 -

Total shareholders' equity                         18,037,106        17,964,059        16,828,984        15,476,276
                                                - - - - - - -   - - - - - - - -   - - - - - - - -   - - - - - - - -

TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY                             73,210,525        64,273,309        49,219,577        35,329,955



Consolidated Profit and Loss Accounts and Statement of Income Appropriation
(All amounts expressed in thousands of Rmb)

                                                      6 months ended
                                                        30 June 2006        Year 2005       Year 2004       Year 2003

Revenue from principal operations                         10,828,881       17,994,389      13,583,739       9,950,564

Less:  Cost of principal operations                       (7,439,263 )    (12,720,252 )    (8,835,476 )    (6,257,373 )
       Tax and levies on principal
         operations                                         (125,922 )       (205,439 )      (168,933 )      (125,390 )

Profit from principal operations                           3,263,696        5,068,698       4,579,330       3,567,801

Add:   Profit from other operations                            2,163            3,239           1,267           5,713
Less:  Operation expenses                                          -                -               -               -
       General and administrative expenses                  (476,651 )       (510,921 )      (377,313 )      (347,982 )
       Financial expenses, net                              (560,967 )       (669,641 )      (597,032 )      (367,252 )

Operation profit                                           2,228,241        3,891,375       3,606,252       2,858,280

Add:   Investment income                                      21,764           80,309          15,518          25,329
       Subsidy income                                            846            2,919               -               -
       Non-operating income                                    1,571           42,160          35,802          16,768
Less:  Non-operating cost                                    (41,208 )       (121,596 )       (49,517 )       (60,217 )

Profit before taxation and

  minority interests                                       2,211,214        3,895,167       3,608,055       2,840,160
Less:  Income tax                                           (613,951 )       (859,880 )      (914,993 )      (919,271 )
       Minority interests                                   (338,698 )       (674,547 )      (436,855 )       (83,956 )

Net profit                                                 1,258,565        2,360,740       2,256,207       1,836,933

Add:   Unappropriated profit brought
         forward                                             446,916        1,199,359       1,154,596         626,830
       Adjustment to opening
         unappropriated profit                                (8,223 )              -               -               -
       Other transfers                                             -                -               -               -

Unappropriated profit                                      1,697,258        3,560,099       3,410,803       2,463,763

Less:  Transfer to statutory surplus
         reserve fund                                              -         (357,493 )      (307,488 )      (204,538 )
       Transfer to statutory public
         welfare fund                                              -         (296,783 )      (259,052 )      (201,130 )
       Transfer to employee bonus and
         welfare fund                                              -                -               -               -

Profit distributable to shareholders                       1,697,258        2,905,823       2,844,263       2,058,095

Less:  Dividend distributed to
         preferred stock                                           -                -               -               -
       Discretionary surplus reserve                        (759,910 )     (1,281,777 )      (509,077 )             -
       Proposed cash dividends                                     -       (1,177,130 )    (1,135,827 )      (903,499 )
       Bonus shares                                                -                -               -               -

Unappropriated profit carried forward                        937,348          446,916       1,199,359       1,154,596




Consolidated Cash Flow Statement
(All amounts expressed in thousands of Rmb)

                                                    6 months ended
                                                      30 June 2006        Year 2005        Year 2004       Year 2003
Cash flows from operating activities
Cash received from sale of goods
  and services                                          11,962,604       20,937,990       15,634,897      11,386,210
Other cash received relating to
  operating activities                                      13,584           95,342           62,217          21,274

Sub-total of cash inflows                               11,976,188       21,033,332       15,697,114      11,407,484
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -
Cash paid for goods and services                        (5,066,892 )     (9,816,223 )     (6,359,298 )    (3,975,325 )
Cash paid to and on behalf
  of employees                                            (564,813 )     (1,202,300 )       (775,284 )      (566,818 )
Payment of all types of taxes                           (2,054,143 )     (3,287,291 )     (2,850,854 )    (2,458,000 )
Other cash paid relating
  to operating activities                                 (278,851 )       (749,418 )       (595,703 )      (625,824 )

Sub-total of cash outflows                              (7,964,699 )    (15,055,232 )    (10,581,139 )    (7,625,967 )
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -

Net cash flows generated from
  operating activities                                   4,011,489        5,978,100        5,115,975       3,781,517
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -
Cash flows from investing activities
Cash received on disposal of
  investments other than subsidiaries                            -          119,215           23,016          18,736
Cash received on disposals
  of subsidiaries                                                -                -                -               -
Cash received on investment income                          28,052           47,038           40,808          82,364
Net cash received from disposals
  of fixed assets, intangible assets
  and other long-term assets                                     -          213,513            5,153             671
Other cash received relating to
  investing activities                                      14,776          210,409        1,061,665         604,536

Sub-total of cash inflows                                   42,828          590,175        1,130,642         706,307
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -
Cash paid to acquire fixed assets,
  intangible assets and other
  long-term assets                                      (6,929,412 )    (17,916,250 )    (15,635,454 )    (7,854,365 )
Cash paid to acquire investments
  in other than equity interest
  in subsidiaries                                         (388,984 )       (330,043 )       (497,340 )      (210,031 )
Cash paid to acquire equity
  interest in subsidiaries                                (280,965 )              -                -               -
Other cash paid relating to
  investing activities                                     (60,000 )       (156,719 )              -        (102,073 )

Sub-total of cash outflows                              (7,659,361 )    (18,403,012 )    (16,132,794 )    (8,166,469 )
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -

Net cash flows used in
  investing activities                                  (7,616,533 )    (17,812,837 )    (15,002,152 )    (7,460,162 )
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -
Cash flows from financing activities
Cash received from investments                             248,945          115,100          343,423         291,488
  Including: cash received from
    minority shareholders' equity
    investments in subsidiaries                            248,945          115,100          343,423         291,488
Cash received from borrowings                           17,039,420       31,110,586       22,934,591       7,202,964
Other cash received relating to
  financing activities                                           -                -                -               -

Sub-total of cash inflows                               17,288,365       31,225,686       23,278,014       7,494,452
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -
Cash paid on repayment of borrowings                   (10,698,927 )    (18,626,991 )    (11,884,245 )    (1,000,253 )
Cash payments of interest expenses,
  dividends and appropriation
  of profit                                             (2,769,896 )     (3,166,931 )     (2,201,057 )      (972,539 )
  Including: Dividends paid to
    minority shareholders
    of subsidiaries                                       (551,018 )       (378,508 )        (66,496 )             -
Other cash paid relating to
  financing activities                                           -                -                -         (47,466 )
  Including: cash payments for
    reduction of registered capital
    in subsidiaries to
    minority shareholders                                        -                -                -         (47,466 )

Sub-total of cash outflows                             (13,468,823 )    (21,793,922 )    (14,085,302 )    (2,020,258 )
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -

Net cash flows generated from
  financing activities                                   3,819,542        9,431,764        9,192,712       5,474,194
                                               - - - - - - - - - -    - - - - - - -    - - - - - - -   - - - - - - -
Effect of foreign exchange rate

  changes on cash                                           (4,200 )        (29,707 )              -               -
Net increase/(decrease) in cash
  and cash equivalents                                     210,298       (2,432,680 )       (693,465 )     1,795,549



Supplementary Information


1. Reconciliation of net profit to
   cash flows from operating activities
   Net profit                                            1,258,565        2,360,740        2,256,207        1,836,933
   Add:   Minority interests                               338,698          674,547          436,855           83,956
          Provision of asset impairment                          -                -                -                -
          Depreciation of fixed assets                   1,788,328        2,713,142        2,057,430        1,622,463
          Amortisation of intangible assets                 10,305           13,265           11,708           11,484
          Amortisation of long-term
            deferred expenses                              122,001           47,248           25,742           63,364
          Increase in deferred expenses                     (1,934 )              -                -                -
          Increase in accrued expenses                      83,927                -                -                -
          Losses on disposal of fixed assets,
            intangible assets and other
            long-term assets                                     -                -                -                -
          Losses on scrapping of
            fixed assets                                         -           39,177           33,912           36,360
          Financial expenses                               587,640          768,955          597,032          373,225
          Exchange gain or loss                            (26,673 )        (99,314 )              -                -
          Investment income                                (21,764 )        (80,309 )        (15,518 )        (25,329 )
          Deferred tax liabilities                               -                -                -                -
          Increase in inventories                         (196,562 )       (302,052 )        (99,780 )        (40,726 )
          Increase in operating
            receivables items                             (722,843 )       (195,367 )       (317,834 )       (285,816 )
          Increase in operating
            payables items                                 791,801           38,068          130,221          105,603
          Net cash flows generated from
            operating activities                         4,011,489        5,978,100        5,115,975        3,781,517
                                                     - - - - - - -    - - - - - - -    - - - - - - -    - - - - - - -
2. Investing and financing activities
   that do not involve cash
   receipts or payments
   Conversion of debt into capital                               -                -                -                -
   Reclassification of current portion
     of Convertible Bonds to
     current liabilities                                         -                -                -                -
   Fixed assets capitalised under
     finance leases                                              -                -                -                -
                                                     - - - - - - -    - - - - - - -    - - - - - - -    - - - - - - -
3. Net increase/(decrease) in cash
   and cash equivalents
   Cash at end of period/year                            1,239,637        1,029,339        3,462,019        4,155,484
   Less: cash at beginning of
         period/year                                    (1,029,339 )     (3,462,019 )     (4,155,484 )     (2,359,935 )
   Cash equivalents at end of
     period/year                                                 -                -                -                -
   Less: cash equivalents at
         beginning of period/year                                -                -                -                -

   Net increase/(decrease) in cash
     and cash equivalents                                  210,298       (2,432,680 )       (693,465 )      1,795,549



Reconciliation of the Consolidated Financial Statements prepared under PRC GAAP
and IFRS

(RMB'000)                                                                     Net assets
                                                     30 June        31 December        31 December        31 December
                                                        2006               2005               2004               2003

Net assets under PRC GAAP                         18,037,106         17,964,059         16,828,984         15,476,276
Impact of IFRS adjustments:
  Difference in the recognition policy
    on housing benefits to the employees              93,366            112,039            149,387            186,733
  Difference in accounting treatment
    on long-term deferred expenses                   (93,174 )         (136,657 )          (62,874 )          (14,929 )
  Difference in accounting treatment
    on interest rate swap                            (34,613 )          (65,399 )         (100,622 )         (152,457 )
  Difference in capitalisation
    of borrowing costs                               307,485            304,338            256,694            113,280
  Difference in the commencement
    of depreciation of fixed assets                  (67,844 )          (67,844 )          (37,186 )          (18,441 )
  Difference in accounting treatment
    on Convertible Bonds                             119,369            145,341            197,885            244,190
  Difference in accounting treatment
    on monetary housing benefits                      64,603             76,428                  -                  -
  Difference in accounting treatment
    of performance payroll accrual                    59,138             79,000                  -                  -
  Effect of amortisation of goodwill                   8,604              5,736                  -                  -
  Others                                             (23,143 )          (19,633 )          (12,004 )          (13,601 )
  Applicable deferred tax impact
    of the above GAAP differences                    (48,783 )          (71,946 )         (109,847 )          (99,719 )
Net assets under IFRS
  (excluding minority interests)                  18,422,114         18,325,462        17,110, 417         15,721,332


(RMB'000)                                                                           Net profit
                                                       6 months ended
                                                         30 June 2006       Year 2005       Year 2004       Year 2003
Net profit under PRC GAAP                                   1,258,565       2,360,740       2,256,207       1,836,933
Impact of IFRS adjustments:
  Difference in the recognition policy
    on housing benefits to the employees                      (18,673 )       (37,346 )       (37,346 )       (37,346 )
  Difference in accounting treatment
    on long-term deferred expenses                             43,483         (73,783 )       (47,945 )        15,487
  Difference in accounting treatment
    on interest rate swap                                      30,786          35,224          51,835          (8,323 )
  Difference in capitalisation
    of borrowing costs                                          3,147          47,644         143,414          43,840
  Difference in the commencement
    of depreciation of fixed assets                                 -         (30,659 )       (18,745 )       (12,581 )
  Difference in accounting treatment
    on convertible bonds                                      (25,972 )       (52,544 )       (46,305 )        20,614
  Difference in accounting treatment
    on monetary housing benefits                              (20,046 )       (19,272 )             -               -
  Difference in accounting treatment
    of performance payroll accrual                            (19,862 )        79,000               -               -
  Effect of amortisation of goodwill                            2,868           5,736               -               -
  Others                                                       (1,140 )        (1,583 )         1,597           9,681
  Applicable deferred tax impact
    of the above GAAP differences                              20,791          37,899         (10,128 )       (56,506 )
Net profit under IFRS
  (excluding minority interests)                            1,273,947       2,351,056       2,292,584       1,811,799

     
(1)  Difference in the recognition policy on housing benefits to the employees

The Company provided housing to its employees at a discount price. The price
difference between the selling price and the cost of housing is considered as
housing benefits and is borne by the Company.

For PRC statutory reporting purposes, in accordance with the relevant
regulations issued by the Ministry of Finance of the PRC, the total housing
benefits provided by the Company 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 are recognised on a straight-line
basis over the estimated remaining average service lives of the employees.


(2)  Difference in accounting treatment on long-term deferred expenses

Under PRC GAAP, expenses incurred during construction stage but cannot be
capitalised are accumulated in long-term deferred expenses and charged into the
profit and loss account upon the commencement of commercial operation of a
company. Under IFRS, such expenses are charged to profit and loss accounts when
incurred.


(3)  Difference in accounting treatment on interest rate swap

To hedge the interest risk derived from the long-term borrowings denominated US
dollar, an interest rate swap contract was entered between Tuoketuo Power
Company, a subsidiary of the Company, and a financial institution. Pursuant to
this interest rate swap contract, Tuokekuo Power Company swap a floating-rate
borrowing for a fixed-rate borrowing with the same notional principal amount.
Under PRC GAAP, interest rate swap contract is disclosed as an off balance sheet
item. Under IFRS, derivatives are recognised in balance sheet at fair value as
assets or liabilities, based on the market condition at each balance sheet date.
Depending on whether the derivative is designated as a hedging instrument, the
resulting gain or loss is recorded in profit and loss accounts or shareholders'
equity. Due to the above interest rate swap contract does not qualify for hedge
accounting in according with IAS 39, the changes in its value are included in
the profit and loss accounts.

     
(4)  Difference in capitalisation of borrowing costs

Under PRC GAAP, capitalisation of interests is limited to specific borrowings.
No interest can be capitalised on general borrowings.

In accordance with IAS 23, a company capitalises interest on general borrowings
used for the purpose of obtaining a qualified fixed assets in addition to the
capitalisation of interest on specific borrowings.

The GAAP difference of capitalised interests on general borrowings also causes
the difference of depreciation expense of relevant fixed assets.


(5)  Difference in the commencement of depreciation of fixed assets

Under PRC GAAP, depreciation of fixed assets commences from one month after the
relevant assets are completed and ready for its intended use. Under IFRS,
depreciation commences immediately when the relevant assets are ready for its
intended use.


(6)  Difference in accounting treatment on convertible bonds

Under PRC GAAP, convertible bonds are presented at principal together with
interest payable. Accrued interest expenses are treated in accordance with the
principle of borrowing costs.

Under IFRS, the proceeds received on the issue of convertible bonds are
allocated into liability and equity components. Upon initial recognition, the
liability component represented the present value, at the issuance date, of the
contractually determined stream of cash flows discounted at the market interest
rate for instruments of comparable credit status providing substantially the
same cash flows, on the same terms but without the conversion option. The equity
component is then determined by deducting the liability component from the
proceeds received on the issue of the bonds. Relating interest expenses are
recognised using effective interest rate.


(7)  Difference in accounting treatment on monetary housing benefits

Under PRC GAAP, the monetary housing benefits provided to employees who started
work before 31 December 1998 were directly deducted from the statutory public
welfare fund after approved by the general meeting of the Company.

Under IFRS, these benefits are recorded as deferred assets and amortised on a
straight-line basis over the estimated service lives of relevant employees.

     
(8)  Difference in accounting treatment of performance payroll accrual

Performance payroll accrued under PRC GAAP, in accordance with relevant
government policies, but not paid out at the end of the year does not meet all
the criteria of recognising liabilities under IFRS. Therefore these unpaid
balances were reversed under IFRS.


(9)     Effect of amortisation of goodwill

Under PRC GAAP, goodwill is amortised over its useful life on a straight-line 
method.

Under IFRS, goodwill is no longer amortised since the financial year starting on
or after 31 March 2003. Goodwill is tested annually for impairment.


(10)    Applicable deferred tax impact of the above GAAP differences

This represents deferred tax effect on the above GAAP difference where 
applicable.


3.     MAJOR CAPITAL EXPENDITURE PLANS IN FUTURE

After estimation, the capital expenditure plans of the Company for the coming
two years comprise RMB8.34 billion in 2006 and RMB4.05 billion in 2007 (actual
capital expenditure will be adjusted according to approvals and progress of
various projects). Future capital expenditure will be mainly for the fixed
assets investment of the subsidiaries of the Company.


DEFINITIONS

In this announcement, unless the context otherwise requires, the following
expressions have the following meanings:

'A Share(s)'                             the domestic ordinary share(s) with a nominal value of RMB1.00 each which are
                                         to be subscribed in RMB and are proposed to be issued by the Company to (i)
                                         part of the existing holders of domestic shares of the Company and (ii)
                                         natural persons and institutional investors in the PRC

'A Shares Issue'                         the proposed issue of A Shares to (i) part of the existing holders of domestic
                                         shares of the Company and (ii) natural persons and institutional public
                                         investors in the PRC by the Company. The A Shares, subject to the relevant
                                         approval of the relevant authorities in the PRC, are proposed to be listed on
                                         the Shanghai Stock Exchange

'Board'                                  board of Directors

'CDGC'                                   China Datang Corporation, a state-owned enterprise
                                         established under the laws of the PRC and is a substantial shareholder of the
                                         Company holding approximately 35.43% of the issued share capital of the
                                         Company

'Company'                                Datang International Power Generation Co., Ltd., a
                                         sino-foreign joint stock limited company incorporated in the PRC on 13
                                         December 1994, the H Shares are listed on the Hong Kong Stock Exchange and the
                                         London Stock Exchange

'Convertible Bond'                       the convertible bond issued by the Company on 3 September 2003 which can be
                                         converted into new H Shares

'CSRC'                                   China Securities Regulatory Commission

'Directors'                              directors of the Company

'Group'                                  the Company and its subsidiaries from time to time

'Hong Kong'                              the Hong Kong Special Administrative Region of the PRC

'Hong Kong Stock Exchange'               The Stock Exchange of Hong Kong Limited

'H Shares'                               the overseas listed foreign shares of the Company with a nominal value of
                                         RMB1.00 each and are listed on the Hong Kong Stock Exchange and the London
                                         Stock Exchange

'IAS'                                    International Accounting Standards

'IFRS'                                   International Financial Reporting Standards

'Listing Rules'                          the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange

'PRC'                                    the People's Republic of China

'PRC GAAP'                               the applicable accounting rules and financial regulations in the PRC

'Relevant Periods'                       for the years ended 31 December 2003, 2004 and 2005, and for the six months
                                         ended 30 June 2006

'RMB'                                    Renminbi, the lawful currency of the PRC

'Shanghai Stock Exchange'                Shanghai Stock Exchange of the PRC

'Shareholder(s)'                         shareholder(s) of the Company

'TJIC'                                   Tianjin Jinneng Investment Company, a state-owned
                                         enterprise established under the laws of the PRC and a substantial shareholder
                                         of the Company holding approximately 10.84% of the issued share capital of the
                                         Company


'US dollar'                              United States dollars, the lawful currency of the United States of America


By Order of the Board
Yang Hongming
Company Secretary

Beijing, the PRC, 16 November 2006


As at the date of this announcement, the Directors are:

Zhai Ruoyu, Zhang Yi, Hu Shengmu, Fang Qinghai, Yang Hongming, Liu Haixia, Guan
Tiangang, Su Tiegang, Ye Yonghui, Tong Yunshang, Xie Songlin*, Xu Daping*, Liu
Chaoan*, Yu Changchun* and Xia Qing*


*  Independent non-executive Directors


                      This information is provided by RNS
            The company news service from the London Stock Exchange