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.
(a sino-foreign joint stock limited company incorporated in the People’s Republic of China)
(Stock Code: 00991)
OVERSEAS REGULATORY ANNOUNCEMENT
AND
INSIDE INFORMATION
THIRD QUARTERLY REPORT OF 2013
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 China Accounting Standards for Business Enterprises (“PRC GAAP”).
This announcement is made by the Company pursuant to the Inside Information Provisions (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), under Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and Rules 13.09(2) (a) and 13.10(B) of the Listing Rules.
§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 The names of the directors who did not attend the Board meeting for the quarterly results and the reasons for not attending are disclosed separately as follow:
Hu Shengmu / Director / Business engagement / Fang Qinghai
Cao Jingshan / Executive Director / Business engagement / Zhou Gang
Li Gengsheng / Director / Business engagement / Zhou Gang
1.3
Person-in-charge of accounting matters / Wang Xianzhou
Person-in-charge of accounting institution
(head of accounting function) / Chen Song
Mr. Chen Jinhang, the person-in-charge of the Company and Mr. Wang Xianzhou, the person-in-charge of accounting matters and Mr. Chen Song, the person-in-charge of 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.
1.4 The third quarterly financial report of the Company is unaudited.
§2 CHANGES IN MAJOR FINANCIAL INDICATORS AND SHAREHOLDERS OF THE COMPANY
2.1 Major financial data
Unit: RMB’000 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 ascompared to the end of the
previous year (%)
Total assets / 287,077,005 / 271,214,243 / 5.85
Net assets attributable to equity holders of the Company / 44,088,734 / 41,490,236 / 6.26
Beginning of the year to the end of the reporting period
(Jan – Sep) / Beginning of the previous year to the end of the previous reporting period
(Jan – Sep) / Increase/decrease as compared to the corresponding period of the previous year (%)
Net cash flows generated from operating activities / 22,085,975 / 17,740,979 / 24.49
Beginning of the year to the end of the reporting period
(Jan – Sep) / Beginning of the previous year to the end of the previous reporting period
(Jan – Sep) / Increase/decrease as compared to the corresponding period of the previous year (%)
Operating revenue / 55,513,116 / 56,772,045 / -2.22
Net profit attributable to equity holders of the Company / 3,674,058 / 1,804,944 / 103.56
Net profit attributable to equity holders of the Company after excluding non-recurring items / 3,324,814 / 1,521,597 / 118.51
Return on net assets
(weighted average) (%) / 8.56 / 4.59 / Increase of 3.97 percentage points
Basic earnings per share
(RMB/per share) / 0.2760 / 0.1356 / 103.54
Diluted earnings per share
(RMB/per share) / 0.2760 / 0.1356 / 103.54
Excluding non-recurring profit/loss items and amounts:
Unit: RMB’000 Currency: RMB
Item / Amount for theperiod
(Jul – Sep) / Amount from the
beginning of the year to the end of
the reporting period
(Jan-Sep)
Profit/loss from disposal of non-current assets / 17 / 2
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) / 41,704 / 172,752
Profit/loss gained from loans entrusted to external entities / 17,955 / 118,845
Other non-operating income and expenses excluding the above-mentioned items / 46,449 / 82,466
Other profit/loss items conforming with the definition of non-recurring profit or loss / 83,188
Impact of income tax / -18,548 / -90,393
Effects of minority shareholders’ interest (after tax) / -6,592 / -17,616
Total / 80,985 / 349,244
2.2 Total number of shareholders as at the end of the reporting period and table of the top ten shareholders and shareholding of the top ten holders of shares free from selling restrictions
Unit: share
Total number of shareholders at the end of the reporting period / 188,367Shareholding of the top ten shareholders
Name of shareholder / Nature of
shareholder / Percentage of
Shareholding (%) / Total number
of shares held / Number of
shares held
with selling
restrictions / Number of
shares subject
to pledge or
freeze
China Datang Corporation / State-owned
legal person / 31.10 / 4,138,977,414 / 100,000,000 / 49,000,000
HKSCC Nominees Limited / Foreign legal person / 24.65 / 3,281,216,919 / Nil
Tianjin Jinneng Investment Company / State-owned
legal person / 9.74 / 1,296,012,600 / Nil
Hebei Construction & Investment Group Co., Ltd. / State-owned
legal person / 9.63 / 1,281,872,927 / Nil
Beijing Energy Investment (Group) Company Limited / State-owned
legal person / 9.47 / 1,260,988,672 / Nil
China Dongfang Electric Group Co., Ltd. / State-owned
legal person / 1.80 / 239,960,000 / Nil
Harbin Electric Co. Ltd. / State-owned
legal person / 1.50 / 200,000,000 / Nil
Aerospace Science & Technology Finance Co., Ltd. / State-owned
legal person / 1.26 / 167,696,960 / Nil
Shanghai Tonghui Industrial Co., Ltd. / Others / 1.25 / 166,000,000 / 166,000,000
Zhongrong Hui Investment Guarantee Co., Ltd. / Others / 1.20 / 160,000,000 / Nil
Shareholding of the top ten holders of circulating shares free from selling restrictions
Name of shareholder (Full name) / Number of circulating shares held not subject to selling restrictions as at the end of the reporting period / Type and quantity of shares
China Datang Corporation / 4,038,977,414 / RMB-denominated ordinary share / 4,038,977,414
HKSCC Nominees Limited / 3,281,216,919 / Overseas-listed foreign shares / 3,281,216,919
Tianjin Jinneng Investment Company / 1,296,012,600 / RMB-denominated ordinary share / 1,296,012,600
Hebei Construction & Investment Group Co., Ltd. / 1,281,872,927 / RMB-denominated ordinary share / 1,281,872,927
Beijing Energy Investment (Group) Company Limited / 1,260,988,672 / RMB-denominated ordinary share / 1,260,988,672
China Dongfang Electric Group Co., Ltd. / 239,960,000 / RMB-denominated ordinary share / 239,960,000
Harbin Electric Co. Ltd. / 200,000,000 / RMB-denominated ordinary share / 200,000,000
Aerospace Science & Technology Finance Co., Ltd. / 167,096,960 / RMB-denominated ordinary share / 167,096,960
Shanghai Tonghui Industrial Co., Ltd. / 166,000,000 / RMB-denominated ordinary share / 166,000,000
Zhongrong Hui Investment Guarantee Co., Ltd. / 160,000,000 / RMB-denominated ordinary share / 160,000,000
Notes on the connected relationship or acting in concert among the above shareholders / China Datang Overseas (Hong Kong) Co., Limited., China Datang Corporation’s wholly-owned subsidiary, held 480,680,000 H shares of the Company as at the end of the reporting period, which were included in the shareholding of the Company held by HKSCC Nominees Limited, representing approximately 3.61% of the Company’s total share capital. Hence China Datang Corporation and its subsidiary held a total of 4,619,657,414 issued shares of the Company, representing approximately 34.71% of the Company’s total issued 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) Cash balance of the Company and its subsidiaries as at the end of the reporting period increased by approximately 99% over the beginning of the reporting period. This was mainly because of the increase in profit and the increase in the scale of long-term debt;
(2) Dividends receivable of the Company and its subsidiaries as at the end of the reporting period increased by approximately 1,646% over the beginning of the reporting period. This was mainly because the dividend of approximately RMB1 billion to be distributed by Tongmei Datang Tashan Coal Mine Company Limited, an associate of the Company, for the reporting period was not yet received;
(3) Available-for-sale financial assets of the Company and its subsidiaries as at the end of the reporting period decreased by approximately 33% over the beginning of the reporting period. This was mainly because of the decline in the share prices of the financial assets held by the Company;
(4) Short-term borrowings of the Company and its subsidiaries as at the end of the reporting period decreased by approximately 31% over the beginning of the reporting period. This was mainly because of the adjustment to the debt structure during the reporting period;
(5) Notes payable of the Company and its subsidiaries as at the end of the reporting period increased by approximately 60% over the beginning of the reporting period. This was mainly because of the increase in payments settled by way of notes for purchases;
(6) Advances from customers received by the Company and its subsidiaries as at the end of the reporting period increased by approximately 88% over the beginning of the reporting period. This was mainly because of the increase in the advances received from sales;
(7) Salaries payable of the Company and its subsidiaries as at the end of the reporting period increased by approximately 405% over the beginning of the reporting period. This was mainly because the payment of wages and bonus provided by the Company was not yet completed;
(8) Dividends payable of the Company and its subsidiaries as at the end of the reporting period increased by approximately 252% over the beginning of the reporting period. This was mainly because of the dividends announced by some of the subsidiaries have not been paid;
(9) Long-term payables of the Company and its subsidiaries as at the end of the reporting period increased by approximately 32% over the beginning of the reporting period. This was mainly because of the increase in financial leasing business;
(10) Undistributed profits of the Company and its subsidiaries as at the end of the reporting period increased by approximately 55% over the beginning of the reporting period. This was mainly because of the increase in operating profit of the Company;
(11) Minority interests of the Company and its subsidiaries as at the end of the reporting period increased by approximately 30% over the beginning of the reporting period. This was mainly because of the combined effect of certain factors, such as the increase in operating profit of the Company and the increase in capital contribution of minority shareholders to subsidiaries;
(12) General and administrative expenses of the Company and its subsidiaries for the nine months ended 30 September 2013 increased by approximately 69% over the corresponding period of the previous year. This was mainly because of the losses from work suspension of the Duolun Coal Chemical Project of the Company;
(13) Income tax expense of the Company and its subsidiaries for the nine months ended 30 September 2013 increased by approximately 136% over the corresponding period of the previous year. This was mainly because of an increase in income tax as a result of the increase in profits;
(14) Other comprehensive income of the Company and its subsidiaries for the nine months ended 30 September 2013 decreased by approximately 1,569% over the corresponding period of the previous year. This was mainly because of the change in the fair value of the available-for-sale financial assets of the Company;
(15) Net profit attributable to equity holders of the Company and its subsidiaries for the nine months ended 30 September 2013 increased by approximately 104% over the corresponding period of the previous year. This was mainly because of the increase in net profit as a result of the decrease in costs;
(16) Basic earnings per share of the Company and its subsidiaries for the nine months ended 30 September 2013 increased by approximately 104% over the corresponding period of the previous year. This was mainly because of the increase in the net profit attributable to the equity holders of the Company as a result of decrease in costs;
(17) Net cash flows generated from financing activities of the Company and its subsidiaries for the nine months ended 30 September 2013 decreased by approximately 50% over the corresponding period of the previous year. This was mainly because of the increase in net cash generated from operating activities and decrease in the amount of new loans 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 and shareholders with equity interests higher than 5%
✓ Applicable ¨ Not applicable
In October 2010, the Company received from its controlling shareholder, China Datang Corporation (“CDC”), an “Undertaking on Matters Regarding Further Avoidance of Business Competition with Datang International Power Generation Co., Ltd. by China Datang Corporation”. In order to further avoid business competition with the Company, CDC further undertakes that: (1) CDC confirms that the Company shall be the ultimate platform for integrating the coal-fired power businesses of CDC; (2) in respect of the non-listed coal-fired power assets of CDC, CDC undertakes that it will inject those assets into the Company in 5 to 8 years when the profitability of such assets has improved and the relevant conditions are met; (3) in respect of the coal-fired power business assets of CDC located in Hebei Province, CDC undertakes that it will inject those assets into the Company in approximately 5 years when the profitability of such assets has improved and the relevant conditions are met; (4) CDC will continue to perform each of its undertakings previously given to support the development of its subordinated listed companies. Such commitments are presently being undertaken and no material progress was made.