Consolidated Net Profit Rises 18.16% to Rmb2,778 Million
HONG KONG, April 2 /Xinhua-PRNewswire-FirstCall/ --
Financial Highlights
-- Consolidated operating revenue amounted to approximately Rmb24,835
million, representing an increase of 38.02% over the Previous
Year.
-- Consolidated net profit attributable to equity holders of the Company
amounted to approximately Rmb2,778 million, representing an increase
of 18.16% over the Previous Year.
-- Basic earnings per share amounted to approximately Rmb0.54,
representing an increase of approximately Rmb0.08 per share over the
Previous Year.
-- The board of directors has recommended the distribution of proposed
dividend of Rmb0.234 per share for the year of 2006.
(Logo: http://www.prnasia.com/sa/200704022007-min.JPG )
Datang International Power Generation Co., Ltd. ("Datang Power" or the "Company") (HKEx: 991; SSE: 601991; LSE: DAT; ADR: DIPGY) announced the audited consolidated operating results of the Company and its subsidiaries and a jointly controlled entity (the "Group") for the year ended 31 December 2006 (the "Year"). Consolidated operating revenue of the Group for the Year was approximately Rmb24,835 million, representing an increase of 38.02% over the same period of 2005 (the "Previous Year"). The consolidated net profit attributable to equity holders of the Company was approximately Rmb2,778 million, representing an increase of approximately 18.16% as compared to the Previous Year. Basic earnings per share of the Company was approximately Rmb0.54, an increase of approximately Rmb0.08 per share as compared to the Previous Year. The board of directors of the Company has recommended the distribution of proposed dividend of Rmb0.234 per share for the year of 2006 (2005: Rmb0.228).
Mr. Zhai Ruoyu, Chairman of Datang Power, said, "In 2006, the Group benefited from the steadily increasing power demand from the service areas, and power generation continued to maintain a satisfactory rate of increase. During the Year, although the nationwide shortage of supply of electricity was further alleviated due to the commencement of operations of a substantial number of new generation units, the Group actively capitalised on market opportunities, diligently carried out effective production operations, and further refined the operating strategies to strive for greater production and more revenue while increasing power generation. Accordingly, the overall economic efficiency of the Group reported a relatively significant increase over the Previous Year."
During the Year, total power generation of the Group amounted to 93.459 billion kWh, an increase of 31.65% when compared to the Previous Year. Total on-grid power generation of the Group amounted to 87.902 billion kWh, an increase of 31.83% when compared to the Previous Year. The Group has achieved satisfactory increases in total power generation and on-grid power generation, mainly attributable to an increased capacity of the Company's operating generation units; increased power demand in the Company's service areas and an improvement in the operating reliability of the Company's generation units.
During the Year, a total of approximately 5,400 MW of coal-fired generation units of the Group commenced operation. These included four 600 MW power generation units at Wushashan Power Project, two 600 MW power generation units at Chaozhou Power Company, two 600 MW power generation units at Ningde Power Company and two 300 MW power generation units at Honghe Power Company. As for hydropower projects, the Group added a capacity of 220 MW in hydropower units, including two 50 MW hydropower generation units at Nalan Hydropower Company and two 60 MW hydropower generation units at Lixianjiang Hydropower's Yayangshan Project.
Datang Power has been actively carrying out strategic extension of its business scope in recent years, with its power source structure transforming from a single mode of coal-fired power generation to the development of renewable energy including hydropower, nuclear power and wind power as well as its business structure transforming from simply a power generator into an integrated industry chain of power-related businesses.
As for nuclear power projects, the Company entered into an investment agreement with Guangdong Nuclear Investment Company Limited to participate in the construction of two nuclear power generation units of 1,000 MW each, and the State has given consent for the commencement of relevant preliminary works of the project. In the field of wind power projects, construction work on Bayin Wind Power Plant Phase I, developed and constructed by the Company's wholly-owned subsidiary, Inner Mongolia Datang International Zhuozi Wind Power Co., Ltd., has officially commenced. It is expected that the project will commence operation in 2007.
For the development of power-related upstream and downstream projects, as at the end of 2006, the Company had signed the "Qiangcao Railway Construction Project Investment Agreement" with six companies including Beijing Railway Bureau, establishing "Tanggang Railway Limited Liabilities Company" and "Hebei Yuzhou Energy Consolidated Development Company Limited", to promote the consolidated development of coal mining, railway and power plants. The Ta Shan Coal Mine in Shanxi, a project which the Company invested in and got the development right, has formed its production capacity in 2006. Meanwhile, Unit 2 of the open-cut coal mine located east of Shengli Coal Mine in Xilinhaote City, Inner Mongolia, has completed the mining site border adjustment. In March 2007, 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, which will further secure the coal supply for the Group's power plants.
While endeavouring to increase power generation, the Company has also put strong emphasis on environmental protection. As at the end of 2006, the installed capacity with desulphurisation facilities in use accounted for 67.3% of the coal-fired units of the Group. Desulphurisation upgrade projects for units totalling 1,600 MW are currently in progress. In addition, renovation works with respect to flue-gas denitro-oxidisation facilities of the Group also commenced, of which the project at Gao Jing Thermal Power Plant was classified as a State model project.
Looking forward to 2007, Mr. Zhai said, "In 2007, power consumption in the PRC is expected to grow at around 12.5%. Such a scenario will provide new development opportunities to the Company. With utilisation rates of power generation units expected to decrease slightly and in view of the uncertainties regarding coal prices and coal quality, the Company will actively pursue expansion in renewable energy projects and the development of power-related upstream and downstream projects, strengthening production safety management, the management of construction quality and schedule, and the management of energy conservation and consumption reduction, with a view to enhancing the overall efficiency of the Company and maintaining a stable and healthy development."
Datang International Power Generation Co., Ltd.
Datang International Power Generation Co., Ltd. is one of the largest independent power producers in China. As at 31 December 2006, 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.
Encl: Extract of Consolidated Income Statement (audited)
Datang International Power Generation Co., Ltd. 2006 Annual Results
(prepared in conformity with International Financial Reporting Standards)
Extract of Consolidated Income Statement (audited)
For the year ended 31 December
2006 2005
Rmb' 000 Rmb' 000
Operating revenue 24,835,218 17,994,389
Total Operating costs (18,847,028) (13,494,749)
Operating profit 5,988,190 4,499,640
Share of results of associates 9,458 (1,273)
Interest income 24,674 40,051
Finance costs (1,358,713) (675,494)
Profit before income tax 4,663,609 3,862,924
Taxation (1,081,256) (813,294)
Profit for the year 3,582,353 3,049,630
Attributable to:
- Equity holders of the Company 2,777,781 2,351,056
- Minority interests 804,572 698,574
3,582,353 3,049,630
Dividends paid 1,177,130 1,135,827
Proposed dividends 1,348,714 1,177,130
Proposed dividend per share (Rmb) 0.234 0.228
Earnings per share for profit
attributable to the equity
holders of the Company during
the year
- basic (Rmb) 0.54 0.46
- diluted (Rmb) 0.52 0.44
For questions, please contact:
Datang International Power Generation Co., Ltd.
Mr. Grant Zhang / Ms. Karen Chen
Tel: +86-10-8358-1428 / 8358-2217
Fax: +86-10-8358-1911
Rikes Communications Limited
Ms. Edith Lui / Ms. Denice Lee
Tel: +852-2520-2201
Fax: +852-2520-2241