PR Newswire | Mar 23, 2021 01:20PM EDT

The Company In 2020 Amounted To Rmb 2.378 Billion Year-on-year Increase 210.28%

03/23 12:19 CDT

Huaneng Power International, Inc. Net Profit Attributable To Equity Holders Of The Company In 2020 Amounted To Rmb 2.378 Billion Year-on-year Increase 210.28% HONG KONG, March 23, 2021

HONG KONG, March 23, 2021 /PRNewswire/ -- Huaneng Power International, INC (hereinafter referred to as "Huaneng International" or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) is pleased to announce the audited operating results of the Company for the year ended 31 December 2020 prepared in accordance with IFRS(International Financial Reporting Standards): the Company realized consolidated operating revenue of RMB169.446 billion (calculated based on the conversion price of USD to RMB on December 31, 2020, 1 US dollar to RMB6.5249, equivalent to approximately US $25.969 billion), representing a decrease of 2.62% compared to the same period last year, and net profit attributable to equity holders of the Company amounted to RMB2.378 billion (equivalent to approximately US $0.364 billion), representing an increase of 210.28% as compared with the same period last year. Earnings per share amounted to RMB0.04 (equivalent to approximately US $0.006). Earnings per American Depositary Share (ADS) amounted to RMB1.55 (equivalent to approximately US$0.237). The main reason for the increase of the Company's net profit was the year-on-year decrease in domestic coal purchase prices and financial expenses. The Board is satisfied with the Company's results last year.

The Board proposed to declare a 2020 cash dividend of RMB0.18 (inclusive of tax) for each ordinary share of the Company held by shareholders.

In 2020, facing up to the impacts and challenges of the COVID-19 pandemic, the Company fully coordinated the work of epidemic prevention and control, production and operation, reform and development. Through the efforts of overcoming difficulties and fighting courageously, the pandemic prevention and control made major progress, safety production and business performance maintained steady, restructuring continued to optimize, new energy construction achieved significant results, scientific innovation achieved new progress and enterprise reform was deeply promoted. We have successfully completed the major objectives of the year.

In 2020, total power generated by the Company's domestic operating power plants on consolidated statements basis amounted to 404.016 billion kWh, representing a year-on-year decrease of 0.24%. The electricity sold amounted to 379.894 billion KWh, representing a year-on-year decrease of 2.14%. The annual average utilization hours of the Company's domestic power plants reached 3,744 hours, representing a year-on-year decrease of 171 hours. The utilization hours of coal-fired power generating units was 4,059 hours, representing a year-on -year decrease of 163 hours. In most of the areas where the Company's coal-fired power plants are located, the utilization hours of the Company were in a leading position. Total heat supplied by the Company amounted to 263 million GJ, representing a year-on-year increase of 11.18%.

In 2020, the Company procured an aggregate of 171 million tons of coal. By accurately judging coal market trends, optimizing procurement strategy and regional supply structure, reinforcing cooperation with major coal enterprises, targeting high-quality low-cost resources on an advanced basis, the Company lowered the unit price of standard coal purchase effectively and relatively well control the fuel procurement cost of the Company. The unit fuel cost of our domestic power plants throughout the year incurred for sales of power was RMB209.07/MWh, representing a year-on-year decrease of 6.34%.

In 2020, the Company maintained a leading position among major domestic thermal power producers, with the average equivalent availability ratio of the domestic thermal generating units of the Company of 94.92%, coal consumption of production power supply of 291.08g/kWh and the house consumption rate of plants of 4.33%. With respect to air pollution emissions, the power generation companies affiliated to the Company have carried out ultra-low-emissions transformation as planned with marked results. All of them have met or outperformed the national emission standards. With respect to treatment of wastewater discharge and coal yards and ash yards, the Company has allocated funds to carry out environmental technological transformation projects such as wastewater treatment, coal yard closure, and ash yard transformation in power plants in key regions. All power plants have accelerated environmental protection transformation projects to ensure that pollutant emissions meet the requirements under pollution discharge permits and other ecological and environmental protection policies.

The Company progressed smoothly in the construction of power supply projects. During the year, the controlled generation capacity of the newly commissioned thermal generating units, wind generating units, photovoltaic units and biomass units was 1,925.04 MW, 2,177.9 MW, 771.93 MW and 65 MW respectively. As of December 31, 2020, the Company's controlled and equity-based generation capacity was 113,357 MW and 98,948 MW, respectively.

Tuas Power Ltd. ("Tuas Power"), a wholly-owned subsidiary of the Company in Singapore, maintained safe and stable operation of the generation units throughout the year. The total market share of Tuas Power in the power generation market for the whole year was 21.4%, representing a year-on-year increase of 0.7 percentage point. The Singapore project (SinoSing Power and Tuas Power combined) recorded a pre-tax profit of RMB131 million, representing a turnaround of RMB700 million compared with the loss of RMB569 million at the same period of last year. The Company invests in a power enterprise located in Pakistan. Sahiwal coal-fired power plant recorded a pre-tax profit of RMB738 million for 2020, representing a decrease of RMB1 million compared to the same period of last year.

In 2021, the Company will regard intrinsic safety as the foundation with a clean and low-carbon direction, focusing on quality and efficiency, taking scientific and technological innovation as the guide and intensifying reform as a means to prevent and control risks, transform and develop, and improve operational efficiency. The power generation is expected to reach 410 billion kWh, with a goal to build a world-class listed power generation company so as to further enhance its competitiveness and create more value for its shareholders.

Appendix: Consolidated financial information of the Company and its subsidiaries for 2020 prepared in accordance with the International Financial Reporting Standards.

About Huaneng Power International, Inc.Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 113,357 MW and equity-based generation capacity of 98,948 MW. The power plants of the Company are located in 26 provinces, autonomous regions and municipalities in China. The Company also has a wholly-owned power company in Singapore, and an invested power company in Pakistan.

For enquiries, please contact:Huaneng Power International, Inc.Ms. ZHU Tao / Ms. ZHAO Lin / Mr. CHEN ZheluTel: (8610) 6608 6750 / 6322 6596 / 6322 6554 Fax: (8610) 6322 6888 Email: zqb@hpi.com.cn

Wonderful Sky Financial Group LimitedMs. Peri Yang / Ms. Karly LaiTel: (852) 3641 1332 / (852) 3970 2286 Fax: (852) 3102 0210 Email: hpi@wsfg.hk



As at As at December 31, 2020 December 31, 2019

RMB US$ RMB

ASSETS

Non-current assets

Property, plant and equipment 300,171,142 46,003,945 285,622,907

Right-of-use assets 18,292,074 2,803,426 17,168,072

Investments in associates and joint 22,375,377 3,429,229 20,783,259ventures

Investment property 647,471 99,231 671,710

Other equity instrument investments 664,946 101,909 779,218

Land use rights - - -

Power generation licenses 3,954,983 606,137 4,149,468

Mining rights 1,611,486 246,975 1,577,505

Deferred income tax assets 2,699,395 413,707 2,160,187

Derivative financial assets 74,554 11,426 16,376

Goodwill 14,738,016 2,258,734 15,934,955

Other non-current assets 18,537,583 2,841,052 18,605,005

Total non-current assets 383,767,027 58,815,771 367,468,662

Current assets

Inventories 6,602,459 1,011,887 8,883,183

Other receivables and assets 7,308,077 1,120,029 6,217,763

Accounts receivables 38,215,715 5,856,904 32,268,939

Contract assets 29,678 4,548 30,466

Derivative financial assets 110,179 16,886 74,911

Bank balances and cash 13,871,523 2,125,936 13,306,139

Assets held for sale - - -

Total current assets 66,137,631 10,136,191 60,781,401

Total assets 449,904,658 68,951,962 428,250,063



As at As at December 31, 2020 December 31, 2019

RMB US$ RMB

EQUITY AND LIABILITIES

Capital and reserves attributable toequity holders of the Company

Share capital 15,698,093 2,405,875 15,698,093

Other equity instruments 48,419,779 7,420,770 25,127,821

Capital surplus 26,162,550 4,009,648 26,215,137

Surplus reserves 8,140,030 1,247,533 8,140,030

Currency translation differences (738,927) (113,248) (54,812)

Retained earnings 32,164,398 4,929,485 33,677,466

129,845,923 19,900,063 108,803,735

Non-controlling interests 21,770,275 3,336,492 21,575,311

Total equity 151,616,198 23,236,555 130,379,046

Non-current liabilities

Long-term loans 112,077,395 17,176,876 115,364,598

Long-term bonds 20,382,405 3,123,788 28,487,115

Lease liabilities 3,805,635 583,248 4,279,925

Deferred income tax liabilities 3,002,527 460,164 3,137,791

Derivative financial liabilities 188,139 28,834 200,408

Other non-current liabilities 4,784,268 733,232 4,780,770

Total non-current liabilities 144,240,369 22,106,142 156,250,607

Current liabilities

Accounts payable and other liabilities 42,755,361 6,552,646 37,270,081

Contract liabilities 2,903,296 444,956 2,706,529

Taxes payable 2,044,869 313,395 2,101,617

Dividends payable 694,854 106,493 1,191,036

Derivative financial liabilities 106,862 16,378 250,300

Short-term bonds 5,002,877 766,736 9,025,535

Short-term loans 66,311,160 10,162,786 67,119,368

Current portion of long-term loans 19,808,313 3,035,803 18,658,114

Current portion of long-term bonds 12,678,511 1,943,097 2,799,808

Current portion of lease liabilities 1,676,711 256,971 432,745

Current portion of other non-current 65,277 10,004 65,277liabilities

Liabilities held for sale - - -

Total current liabilities 154,048,091 23,609,265 141,620,410

Total liabilities 298,288,460 45,715,407 297,871,017

Total equity and liabilities 449,904,658 68,951,962 428,250,063

For the convenience of the reader, translation of amounts from Renminbi (RMB) into United States dollars (US$) has been made at the rate of US$1.00=RMB6.5249 announced by the People's Bank of China on Dec 31, 2020. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at Dec 31, 2020, or at any other certain rate.

For the twelve months ended Dec 31

2020 2019

RMB US$ RMB

Operating revenue 169,446,338 25,969,185 174,009,401

Tax and levies on operations (1,794,004) (274,947) (1,832,975)

Operating expenses

Fuel (88,966,304) (13,634,892) (97,686,799)

Maintenance (5,001,982) (766,599) (4,606,171)

Depreciation (22,146,316) (3,394,123) (21,864,903)

Labor (14,503,290) (2,222,761) (13,514,752)

Service fees on transmission and (95,894) (14,697) (95,067)transformer facilities of HIPDC

Purchase of electricity (4,720,261) (723,423) (5,151,578)

Others (20,300,072) (3,111,169) (16,879,425)

Total operating expenses (155,734,119) (23,867,664) (159,798,695)

Profit from operations 11,918,215 1,826,574 12,377,731

Interest income 292,724 44,863 264,554

Financial expenses, net

?Interest expense (9,200,612) (1,410,077) (10,762,718)

?Exchange loss and bank charges, net 100,643 15,424 (210,422)

Total financial expenses, net (9,099,969) (1,394,653) (10,973,140)

Share of profits and losses ofassociates 1,774,322 271,931 1,185,622and joint ventures

Gain/(Loss) on fair value changes of (1,566) (240) 36,667financial assets/liabilities

Other investment income (109,990) (16,857) 228,026

Profit before income tax expense 4,773,736 731,618 3,119,460

Income tax expense (2,163,173) (331,526) (2,011,255)

Net profit 2,610,563 400,092 1,108,205

For the 12 months ended Dec 31

2020 2019

RMB US$ RMB

PROFIT FOR THE PERIOD 2,610,563 400,092 1,108,205

Other comprehensive income/(loss), net of tax

Items that will not be reclassified to profitor loss:

Fair value changes of other equity instrument (175,984) (26,971) (61,652)investments

Share of other comprehensive income/(loss) ofjoint (178,501) (27,357) 367,528ventures and associates

Income tax effect 43,996 6,743 15,413

Items that may be reclassified subsequently toprofitor loss:

Share of other comprehensive income/(loss) ofjoint (4,348) (666) 1,168ventures and associates

Cash flow hedges, net of tax:

Effective portion of changes in fair value of (166,323) (25,491) 264,691hedging instruments arising during the year

Reclassification adjustments for gains includedin the 414,821 63,575 (119,793)consolidated statement of profit or loss

Exchange differences on translation (862,454) (132,179) 128,494of foreign operations

Income tax effect (42,245) (6,474) (24,962)

Other comprehensive income/(loss), net of tax (971,038) (148,820) 570,887

Total comprehensive income 1,639,525 251,272 1,679,092

Net profit attributable to:

- Equity holders of the Company 2,377,851 364,427 766,345

- Non-controlling interests 232,712 35,665 341,860

Total comprehensive income attributable to:

- Equity holders of the Company 1,599,471 245,133 1,498,013

- Non-controlling interests 40,054 6,139 181,079

Earnings per share attributable to the ordinaryshareholders of the Company (expressed in RMBper share)

- Basic and diluted 0.04 0.01 0.01

For the convenience of the reader, translation of amounts from Renminbi (RMB) into United States dollars (US$) has been made at the rate of US$1.00=RMB6.5249 announced by the People's Bank of China on Dec 31, 2020. No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as at Dec 31, 2020, or at any other certain rate.

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SOURCE Huaneng Power International, Inc.