Net Profit Rose 41.86% to RMB1,807 Million
Operating and Financial Highlights
-- Consolidated operating revenue amounted to RMB15,465 million, a year-
on-year increase of 42.26%.
-- Net profit attributable to the equity holders amounted to approximately
RMB1,807 million, a year-on-year increase of 41.86%.
-- Basic earnings per share amounted to approximately RMB0.16.
HONG KONG, Aug. 27 /Xinhua-PRNewswire-FirstCall/ -- Datang International Power Generation Co., Ltd. (“Datang Power” or the “Company”) (HKEx: 991; SSE: 601991; LSE: DAT; ADR: DIPGY) announced today the unaudited consolidated operating results of the Company and its subsidiaries and a jointly controlled entity (the “Group”) for the six months ended 30 June 2007 (the “Period”).
During the Period, consolidated operating revenue of the Group was approximately RMB15,465 million, representing an increase of 42.26% as compared to the first half of 2006. Consolidated net profit attributable to the equity holders of the Company was approximately RMB1,807 million, an increase of approximately 41.86% year-on-year. Basic earnings per share amounted to approximately RMB0.16 (including the impact of on the issue of 10 bonus shares for every 10 shares outstanding by utilising the capital reserve fund), an increase of approximately RMB0.04 per share year-on-year. The board of directors does not recommend any interim dividend.
Mr. Zhai Ruoyu, Chairman of Datang Power, said, “With the PRC economy maintaining a relatively fast growth, social power consumption during the first half of 2007 increased by about 15.56% over the same period last year, while nationwide power generation increased by approximately 16%. Benefiting from a positive operating environment, the Group also maintained satisfactory growth on its power generation. In addition, an increase in on-grid power generation, upward adjustments of average on-grid power tariffs, continued stringent cost controls and energy savings and consumption reduction measures have all enabled the Group to achieve satisfactory performance in the first half of 2007.”
During the Period, total power generation of the Group amounted to 56.042 billion kWh, an increase of 35.54% year-on-year. Total on-grid power generation amounted to 52.812 billion kWh, an increase of 35.79%. The satisfactory increase in the Group’s power generation and on-grid power generation was attributable to increased capacity of operating generation units, steady rapid growth of power demand in the Group’s service areas, and an improvement in operating reliability of generation units.
The Group continued to implement energy savings and consumption reduction measures during the Period, which has enabled the unit coal consumption for power supplied to decrease by approximately 8g/kwh over the same period last year to 336.99g/kwh, while consolidated self electricity consumption was down approximately 0.2 percentage point over the same period last year to 5.78%.
During the Period, the Phase 1 project (installed capacity: two 600 MW units) of Ningxia Datang International Daba Power Generation Company Limited, a company in which the Company holds 45% interests, was approved by the relevant State authorities and construction would commence within the current year. The Group has also achieved progress in other power generation fields. As for hydropower projects, the Hengjiang region Luoze River Two-Level hydropower projects (total installed capacity: 48 MW), controlled and constructed by the Company, were respectively approved by the relevant State authorities and construction is expected to commence within the current year. The preliminary works on Fujian Ningde Nuclear Power Company Limited reported smooth progress, and to date, the project has finished the compilation of the “Project Application Report”. For wind power projects, the Bayin Wind Power Plant Phase II (installed capacity: 48 MW) and the Shanxi Datong Zuoyun Wing Power Plant Phase I (installed capacity: 49.5 MW), planned to be solely developed by the Company, were respectively approved by the relevant State authorities. Construction of these projects is expected to officially commence within the current year.
Apart from actively optimising the power generation structure of the Company, the business structure of the Company has also been transformed from simply an electricity producer into a chain of relevant businesses. Apart from the Group’s coal projects such as Ta Shan Coal Mine in Shanxi and Shengli Coal Mine in Xilinhaote City, Inner Mongolia, the Company has recently considered and approved the development and construction of the “Coal-based Olefin Project in Duolun County, Xilinguole League, Inner Mongolia” with controlling interests. The project uses coal from Shengli Coal Mine in Inner Mongolia, of which the Company participated in the development, as raw materials. It produces chemical products with advanced technologies. The project is expected to produce annually 460,000 tonnes of polypropylene and other by-products. The Inner Mongolia Development and Reform Commission has approved the preliminary application for the project. In addition, the Company entered into an equity transfer agreement with Inner Mongolia Huineng Group to participate in the development of Changtan Coal Mine in Ordos City of Inner Mongolia. It is expected that the relevant acquisition procedures will be completed before the end of the current year.
While endeavouring to increase power generation, the Group also put a strong emphasis on the implementation of environmental protection projects in accordance with the State’s environmental protection requirements. As at 30 June 2007, the installed capacity of the Group with desulphurisation facilities in use accounted for about 70% of the coal-fired units of the Group. Meanwhile, other environmental protection projects such as denitration and denitrification upgrades are currently in progress as scheduled.
Looking forward to the second half of 2007, Mr. Zhai said, “Facing the challenges ahead in the power market, the Company will continue to implement its diversified development strategy, striving to expand the reserve of preliminary projects, and strengthening fuel management to contain fuel costs at a lower level. In addition, the Company will strive to secure funding for the Company’s development by actively studying low-cost financing channels. By implementing the strategies above, the Company will be forging ahead to a new development platform.”
Datang International Power Generation Co., Ltd.
Datang International Power Generation Co., Ltd. is one of the largest independent power producers in China. As at 30 June 2007, the Company’s total installed capacity in operation amounted to 19,430 MW. Datang Power has been listed on The Stock Exchange of Hong Kong Limited and the London Stock Exchange respectively since March 1997. Since September 2001, the Company’s American Depositary Receipts (ADRs) have been traded in the U.S. over-the-counter market. The Company has been successfully listed on the Shanghai Stock Exchange since December 2006.
Datang International Power Generation Co., Ltd.
2007 Interim Results
(prepared in conformity with International Financial Reporting Standards)
Condensed Consolidated Income Statement (unaudited)
Six months ended 30 June
2007 2006
RMB’000 RMB’000
Operating revenue 15,465,022 10,870,962
Operating costs (11,544,567) (8,100,949)
Operating profit 3,920,455 2,770,013
Share of profit/(loss) of associates 6,905 (3,426)
Interest income 31,121 14,463
Finance costs (973,005) (560,936)
Profit before taxation 2,985,476 2,220,114
Taxation (732,806) (598,386)
Profit for the Period 2,252,670 1,621,728
Attributable to:
Equity holders of the Company 1,807,257 1,273,947
Minority interest 445,413 347,781
2,252,670 1,621,728
Earnings per share for profit
attributable to the equity
holders of the Company
-- basic (RMB) 0.16 0.12
-- diluted (RMB) 0.16 0.12
For enquiries, please contact:
Mr. Grant Zhang / Ms. Karen Chen
Datang International Power Generation Co., Ltd.
Tel: (8610) 8358 1428 / 8358 2217
Fax: (8610) 8358 1911
Ms. Edith Lui / Ms. Denice Lee
Rikes Communications Limited
Tel: (852) 2520 2201
Fax: (852) 2520 2241
