Interim Results

Beijing Datang Power Generation Com
25 August 2003


                         Beijing Datang Power Generation Company Limited

              (A Sino-foreign Joint Stock Limited Company incorporated in the People's Republic of China)



                                         Announcement of 2003 Interim Results



I.    INTERIM RESULTS


The board of directors (the 'Board') of Beijing Datang Power Generation Company Limited (the 'Company') hereby
announces the unaudited operating results of the Company and its subsidiaries for the six months ended 30th June
2003 (the 'Period') prepared in conformity with International Financial Report Standards. Such results have been
reviewed and confirmed by the Audit Committee of the Company.

The Company's consolidated operating revenue for the Period amounted to approximately Rmb4,501,679,000, an
increase of 28.93% as compared to the corresponding period last year. Consolidated net profit was approximately
Rmb784,233,000, an increase of 30.42% as compared to the corresponding period last year. Earnings per share
amounted to approximately Rmb0.15, an increase of approximately Rmb0.03 per share as compared to the
corresponding period last year.

The Board is satisfied with the above results. Please refer to the unaudited condensed consolidated income
statement set out below for details of the operating results.


CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited)
FOR THE SIX MONTHS ENDED 30TH JUNE 2003
(Amounts expressed in thousands of Rmb, except per share data)


                                                                          Six months ended 30th June
                                                         Note                    2003                   2002

Operating revenue                                          2                4,501,679              3,491,543

Operating costs                                            6               (3,129,463 )           (2,473,133 )


Operating profit                                                            1,372,216              1,018,410

Share of profit of associates                                                   7,223                  3,718

Interest income                                                                24,503                 48,153

Finance costs                                              6                 (233,700 )             (236,584 )


Profit before taxation                                                      1,170,242                833,697

Taxation                                                   3                 (390,427 )             (277,565 )


Profit before minority interests                                              779,815                556,132

Minority interests                                                              4,418                 45,186


Net profit                                                                    784,233                601,318


Earnings per share - basic (Rmb)                           4                     0.15                   0.12



1.  Principal accounting policies


The condensed consolidated financial statements are prepared in accordance with International Accounting
Standard No. 34 Interim Financial Reporting and Appendix 16 of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited.

The principal accounting policies adopted for the preparation of the condensed consolidated financial
statements for the six months ended 30th June 2003 are consistent with those adopted for the preparation
of the consolidated financial statements for the year ended 31st December 2002.


2.  Operating revenue


Operating revenue represents amount of tariffs billed for electricity generated and transmitted to North
China Power Group Company ('NCPGC'). Operating revenue is billed and recognised upon transmission of
electricity to the power grid controlled and owned by NCPGC.


3.  Taxation


                                                                   Six months ended 30th June
                                                                        2003                      2002
                                                                        '000                      '000

PRC enterprise income tax
- Current tax                                                        428,552                   339,918
- Deferred tax                                                       (38,125 )                 (62,353  )


                                                                     390,427                   277,565



Enterprise 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. The
applicable PRC enterprise income tax rate for the Company and its subsidiaries is 33%.


4.  Earnings per share


The calculation of basic earnings per share for the six months ended 30th June 2003 was based on net
profit of approximately Rmb784,233,000 (2002 - Rmb601,318,000) and on the weighted average number of
5,162,849,000 shares outstanding during the period.

No diluted earnings per share have been presented, as there were no dilutive potential ordinary shares
outstanding for the six months ended 30th June 2003 and 2002.


5.  Profit appropriations


Dividends

On 3rd March 2003, the Board of Directors proposed a dividend of Rmb0.12 per share, totalling
approximately Rmb619,542,000 for the year ended 31st December 2002. The proposed dividend distribution
was approved by the shareholders in their general meeting dated 10th July 2003.

Reserves

Approximately Rmb16,180,000 has been transferred from the restricted reserve, which is specifically set
up to reflect the reduction of the statutory public welfare fund under PRC GAAP, to retained earnings.
This amount represented amortisation of deferred housing benefits for the six months ended 30th June
2003.

Pursuant to the Accounting System for Business Enterprises of the PRC, statutory public welfare fund is
transferred out to discretionary surplus reserve upon utilisation for the collective benefits of the
employees. For the six months ended 30th June 2003, approximately Rmb16,673,000 (2002 - Nil) of the
statutory public welfare fund was transferred out to discretionary surplus reserve.


6.  Supplemental financial information


                                                                    Six months ended 30th June
                                                                           2003                  2002
                                                                           '000                  '000

Interest expenses                                                       254,991               243,108
Less: amount capitalised in property, plant
       and equipment                                                    (85,416 )            (103,756 )


                                                                        169,575               139,352
Exchange loss, net                                                           13                     -
Fair value loss on an interest rate swap                                 64,112                97,232


Finance costs                                                           233,700               236,584
Cost of inventories
  - Fuel                                                              1,524,410             1,094,233
  - Spare parts and consumable supplies                                  22,112                22,723

Depreciation and amortisation                                           716,794               666,358

Dividend income                                                         (10,063 )              (7,107 )



II.   MANAGEMENT DISCUSSION AND ANALYSIS


The People's Republic of China (the 'PRC') recorded a GDP growth rate of 8.2% during the Period. Driven by
domestic economic growth, power demand increased substantially, and aggregate social power consumption
increased by 15.43% as compared to the corresponding period last year. Power generation by the Company and
its subsidiaries during the Period increased by 29.87% as compared to the corresponding period last year,
while consolidated operating revenue increased by 28.93% as compared to the corresponding period last year.
In summary, consolidated net profit of the Company and its subsidiaries increased by 30.42%, or approximately
Rmb182,915,000, as compared to the corresponding period last year.


1.  Operating Conditions


During the Period, the Company and its subsidiaries' operating installed capacity was 6,770MW and total
power generation amounted to 18,241,529MWh, representing an increase of 29.87% as compared to the
corresponding period last year. On-grid power generation during the Period amounted to 17,114,600MWh,
representing an increase of 30.97% as compared to the corresponding period last year. The increase in
power generation and on-grid power generation was mainly attributable to: (1) the increase of installed
capacity, owing to the addition of Unit 2 (600MW) of Tianjin Datang Panshan Power Generation Company
Limited ('Datang Panshan Power') which commenced commercial operation in July 2002, and Unit 1 (600MW) of
Inner Mongolia Datang Tuoketuo Power Generation Company Limited ('Datang Tuoketuo Power') which commenced
power generation in June 2003; (2) the rising power demand in the Beijing-Tianjin-Tangshan ('BTT') area,
marked by a 15.5% increase in power sold during the Period; and (3) safe and stable operation of existing
units at high operating levels, as reflected by an equivalent availability factor of 92.15% for the
Period.


2.  Business Expansion


The Company continued to implement a pro-active expansion strategy while enhancing management of
construction in progress ('CIP') and preparatory works. The current status of CIP and preliminary works
in which the Company owns controlling stakes is as follows:


*    Unit 1 of Datang Tuoketuo Power Phase I (600MW) commenced power generation in June 2003.

*    Unit 2 of Datang Tuoketuo Power Phase I (600MW) commenced power generation in July 2003.

*    The two units of Shanxi Datang Pingwang Thermal Power Company Limited (2X220MW) are expected to
     commence power generation in the second half of 2003.

*    Datang Tuoketuo Power Phase II (2X600MW) are expected to commence power generation in 2004.

*    The first unit of Shanxi Datang Shentou Power Generation Limited (2X500MW) is expected to commence
     power generation in 2004.

*    Technological upgrade work of Hebei Datang Tangshan Thermal Power Company Limited Phase I and II
     (2X300MW) is expected to commence power generation in 2004.

*    The two units of Gansu Datang Liancheng Power Generation (2X300MW) is expected to commence power
     generation in 2004.

*    The first unit of Yunnan Datang Nalan Hydropower Development Company Limited (3X50MW hydropower
     units) is expected to commence power generation in 2005.




Datang Tuoketuo Power Phase I is an integral part of the 'West-to-East Power Transmission Plan'. It
transmits electricity directly to the BTT area power grid, and will play a pivotal role in securing a
steady supply of power to Beijing.


3.  Financial Analysis


(1)  Operating Results

     During the Period, the Company and its subsidiaries recorded consolidated operating revenue of
     approximately Rmb4,501,679,000, consolidated net profit of approximately Rmb784,233,000 and earnings
     per share of Rmb0.15.

     During the Period, growth in both consolidated operating revenue and consolidated net profit was
     attributed to the following reasons: the on-grid power generation of the four power plants
     wholly-owned by the Company (with installed capacity of 4,950 MW) increased 13.19% as compared to
     the corresponding period last year, thereby sustaining a relatively high level of profit. The smooth
     running of Datang Panshan Power Units 1 and 2 and the two hydropower units of Hebei Huaze Hydropower
     Development Company Limited has led to continued growth in consolidated profit of the Company and
     its subsidiaries. Our consistent and stringent control over costs was effective to the extent that
     growth in consolidated operating revenue of the Company and its subsidiaries out-performed the
     increase in consolidated operating costs. Owing to the factors mentioned above, the consolidated net
     profit of the Company and its subsidiaries increased by approximately 30.42%, or approximately
     Rmb182,915,000, as compared to the corresponding period last year.

(2)  Financial Conditions

     As at 30th June 2003, total assets of the Company and its subsidiaries amounted to approximately
     Rmb28,680,743,000, representing an increase of approximately Rmb1,861,055,000 as compared to that as
     at 31st December 2002. Total liabilities amounted to approximately Rmb13,123,757,000, representing
     an increase of Rmb1,590,582,000 as compared to that as at 31st December 2002. Minority interests
     amounted to Rmb1,013,016,000, representing an increase of Rmb105,782,000 as compared to that as at
     31st December 2002. Shareholders' equity amounted to approximately Rmb14,543,970,000, representing
     an increase of Rmb164,691,000 as compared to that as at 31st December 2002. The growth in the
     Company's total assets mainly reflected the implementation of the Company's development strategy and
     the increase in investments in CIP by the Company.

(3)  Liquidity

     As at 30th June 2003, the Company's asset-to-liability ratio (i.e. the ratio between total assets
     and total liabilities, excluding minority interests) was 45.76%. The net debt-to-equity ratio (i.e.
     (total debt - cash and cash equivalents - short-term bank deposits (over 3 months) - investments
     held for trading)/shareholders' equity) was 40.62%.

(4)  Cash

     As at 30th June 2003, the Company and its subsidiaries had total cash and cash equivalents and
     short-term bank deposits (over 3 months) amounting to approximately Rmb4,228,207,000, among which
     the equivalent of approximately Rmb786,833,000 of deposits was held in foreign currencies. The
     Company had no trust deposits or overdue fixed deposit during the Period.

(5)  Borrowings

     As at 30th June 2003, the Company and its subsidiaries had short-term loans of approximately
     Rmb1,780,450,000 at annual interest rates of 4.54% to 4.79%. Long-term loans (excluding those
     payable within 1 year) amounted to approximately Rmb7,848,948,000 and long-term loans payable within
     1 year amounted to approximately Rmb607,124,000 at annual interest rates of 2.53% to 5.76%,
     including US Dollar loans equivalent to approximately Rmb2,407,512,000.

     As at 30th June 2003, NCPGC and certain minority shareholders of the Company's subsidiaries provided
     guarantees to the loan of the Company and its subsidiaries amounting to approximately Rmb4,972
     million. The Company did not provide any form of guarantee for any company other than its
     subsidiaries.

4.   Future Prospects

     The PRC government has laid down an objective to build a moderately affluent society. The adoption
     of effective economic policies supported by pro-active fiscal and sound monetary policies, and
     flexible economic leveraged realignments not only bolstered the existing economic growth, but also
     laid a solid foundation for the future long-term development of the PRC. PRC will continue to
     maintain its tremendous growth trend with the implementation of strategies like 'Development of the
     West' and 'West-to-East Power Transmission Plan'. Although the business expansion of the Company
     will be greatly benefited by the sustained growth of the domestic economy, its operating results
     will be affected by the impact of surging fuel prices and profitability of newly operating units.
     Taking into account the prevailing market conditions, the Company will adhere to the business
     objectives formulated by the Board early this year. The Company will continue to focus on both
     expansion within and beyond our service area; our dual emphasis on hydropower and coal-fired power;
     and dual strategy of building and acquiring power plants. The Company will strive to pursue greater
     cost efficiency through growth, and growth through greater cost efficiency. It is also our objective
     to bolster competitiveness through new management methods, system reforms and technological
     innovation.





III. SHARE CAPITAL AND DIVIDENDS


1   Share Capital

    No new shares were issued by the Company during the Period. As at 30th June 2003, the total share capital
    of the Company amounted to Rmb5,162,849,000, divided into 5,162,849,000 shares with a nominal value of
    Rmb1.00 each.

2   Substantial Shareholders

    During the Period, the following persons (other than a director, chief executive or supervisor of the
    Company) have interests or short positions in the shares or underlying shares as recorded in the register
    required to be kept by the Company pursuant to section 336 of the Securities and Futures Ordinance
    (Chapter 571) ('SFO'):


                                                                                            Percentage of
                                                       Class of            Number of       shares capital
Name of shareholder                                      shares               shares             held (%)

China Datang Corporation/                      Domestic Shares*        1,828,768,200                35.43
  North China Power Group
  Company

Beijing International Power                    Domestic Shares*          671,792,400                13.01
  Development and Investment
  Company

Hebei Construction Investment                  Domestic Shares*          671,792,400                13.01
  Company

Tianjin Jinneng Investment                     Domestic Shares*          559,827,000
  Company


*     Shareholder's own interest in the long position


3   Dividends

    Pursuant to a resolution at the Board meeting on 3rd March 2003 and as approved at the annual general
    meeting held on 10th July 2003, the Company declared a dividend of Rmb0.12 for year 2002 payable to the
    shareholders of the Company whose names appear on the Company's register of members as at 1st June 2003.
    Dividends to domestic shares shareholders were declared and paid in Rmb. Dividends to overseas shares
    (the 'H Shares') shareholders were declared in Rmb and paid in Hong Kong Dollars.

    The Board does not recommend the payment of any interim dividend for 2003.

4   Shareholdings of Directors and Supervisors

    At any time during the Period, none of the directors, supervisors, chief executives of the Company or
    their associates held or were deemed to hold interests or short positions in the shares, underlying
    shares or debenture of the Company or any of its associated corporations (as defined in the SFO), nor
    were they granted the right to subscribe for or purchase any interests in shares or debentures of the
    Company or any of its associated corporations.



IV. PURCHASE, SALE AND REDEMPTION OF THE COMPANY'S LISTED SECURITIES


During the Period, the Company had not purchased, sold or redeemed any of the its listed securities.



V.   SIGNIFICANT MATTERS


1.  At the 2002 annual general meeting held on 10th July 2003, the Board was granted the authority to issue
    new shares in the Company not exceeding 20% of its share capital.

2.  At the 2003 extraordinary general meeting, H class meeting and domestic class meeting held on 10th July
    2003, it was resolved that the validity period of the special resolutions passed at the extraordinary
    general meeting, H class meeting and domestic class meeting held on 10th May 2002 authorising the Board
    to issue up to US$300,000,000 overseas convertible bonds be extended until 29th June 2004.



VI.  CODE OF BEST PRACTICE


During the Period, the Company had complied with the Code of Best Practice set out in Appendix 14 of the
Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the 'Listing Rules').



VII. THE AUDIT COMMITTEE


The Audit Committee, together with the management, has reviewed the accounting principles, accounting
standards and practices adopted by the Company, and has discussed the issues on internal controls. It has
also reviewed the unaudited condensed consolidated financial statements for the six months ended 30th June
2003.


                                                                                            By Order of the Board
                                                                                                  Zhai Ruoyu
                                                                                                   Chairman


Beijing, PRC, 22nd August 2003

The interim report of the Company for the six months ended 30th June 2003, containing all the information required by
paragraph 46(1) to 46(6) inclusive of Appendix 16 to the Listing Rules, will be published on the website of The Stock
Exchange of Hong Kong Limited (http://www.hkex.com.hk) within 21 days after publication of this announcement.

Please refer to the South China Morning Post for the published version of the Company's interim results announcement.





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