HUANENG POWER INTERNATIONAL, INC. NET LOSS ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY IN 2021 AMOUNTED TO RMB 10.636 BILLION YEAR-ON-YEAR DECREASE 547.27%

Rhea-AI Summary

Huaneng Power International, Inc. reported a consolidated operating revenue of RMB204.605 billion for 2021, representing a 20.75% increase year-on-year. However, the company recorded a net loss of RMB-10.636 billion, a significant decrease of 547.27% compared to the prior year, primarily due to rising coal prices. The Board proposed no dividend for 2021. Despite challenges, including the Covid-19 pandemic, the company achieved a 13.20% increase in total power generated. Huaneng aims to enhance its operational strategies and sustainability initiatives in 2022.

Positive

• Consolidated operating revenue increased by 20.75% to RMB204.605 billion.
• Total power generated increased by 13.20% to 457.336 billion kWh.
• Sahiwal power plant in Pakistan reported a pre-tax profit of RMB776 million, an increase of RMB38 million.

Negative

• Net loss attributable to equity holders was RMB-10.636 billion, a decrease of 547.27%.
• No dividend proposed due to negative net profit.
• Unit fuel cost for sales of power rose to RMB316.36/MWh, a year-on-year increase of 51.32%.

BEIJING, March 22, 2022 /PRNewswire/ -- Huaneng Power International, Inc. (hereinafter referred to as the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) announces the audited operating results of the Company for the year ended 31 December 2021 prepared in accordance with IFRS (International Financial Reporting Standards): the Company realized consolidated operating revenue of RMB204.605 billion (calculated based on the conversion price of USD to RMB on December 31, 2021, 1 US dollar to RMB6.3757, equivalent to approximately US $32.091 billion), representing an increase of 20.75% compared to the same period last year, and net profit attributable to equity holders of the Company amounted to RMB-10.636 billion (equivalent to approximately US $-1.668 billion), representing a decrease of 547.27% as compared with the same period last year. Earnings per share amounted to RMB-0.81 (equivalent to approximately US $-0.13). Earnings per American Depositary Share (ADS) amounted to RMB-32.55 (equivalent to approximately US$-5.105). The main reason for the decrease in profit was that the increase in coal prices negatively affected the profit of domestic power business.

In accordance with the Company's Articles of Association, the Board proposed no dividend for 2021 due to the negative net profit attributable to equity holders of the company achieved in 2021, comprehensive consideration of the investment needs of the Company's transformation and development as well as the increase in the Company's gearing ratio in 2021. The proposal has been reviewed and approved by the Board and the Supervisory Committee of the Company and will be submitted to the annual general meeting of the Company for deliberation.

In 2021, facing up to the risk of the Covid-19 pandemic and the market environment of sharply rising coal prices, the Company fully coordinated the work of epidemic prevention and control, production and operation, transformation and development. Throughout the year, safety production maintained steady, electricity and heat supply were stable, the pace of transformation and upgrading was accelerated, and scientific innovation achieved new progress. We have completed the major objectives of the year, and actively fulfilled the responsibility of providing sufficient, reliable, and environmentally friendly electricity to the society.

In 2021, based on the principle of maximizing overall interests, the company strengthened market analysis, adhered to the overall planning of volume and price, made every effort on market transactions, strived to generate more and more profitable electricity, and took advantage of the policy opportunity of expanding the floating range of electricity prices to timely optimize marketing strategies, so that both the electricity and heat supply achieved increase in volume and price. Total power generated by the Company's domestic operating power plants on consolidated statements basis amounted to 457.336 billion/kWh, representing a year on-year increase of 13.20%. The electricity sold amounted to 430.165 billion/kWh, representing a year-on-year increase of 13.23%. The annual average utilization hours of the Company's domestic power plants reached 4,058 hours, representing a year-on-year increase of 314 hours. The utilization hours of coal-fired power generating units was 4,488 hours, representing a year-on -year increase of 429 hours. The utilization hours of most of the Company's coal-fired power plants were leading in its corresponding areas respectively. Total heat supplied by the Company's domestic operating power plants on consolidated statements basis amounted to 297 million GJ, representing a year-on-year increase of 12.64%.

In 2021, the Company procured an aggregate of 203 million tons of coal throughout the year. Facing up to the tense market environment of coal supply and demand, the Company tracked the trend of the coal market in real time, made full use of policy support, actively seized market opportunities, optimized procurement strategy and regional supply structure, reinforced cooperation with key coal enterprises, and targeted high-quality low-cost resources on an advanced basis and strived to control coal procurement costs. However, due to the sharp rise in coal prices, the Company's unit fuel cost throughout the year incurred for sales of power rose to RMB316.36/MWh, a year-on-year increase of 51.32%.

In 2021, the Company maintained a leading position among major domestic thermal power producers in terms of production safety, technical economy and energy consumption indicators throughout the year. The average equivalent availability ratio of the domestic thermal generating units of the Company was 93.26%, coal consumption of production power supply was 290.69g/kWh and the house consumption rate of plants was 4.34%. With respect to air pollution emissions, the power plants of 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 the process of environmental protection transformation projects to ensure that pollutant emissions meet the strict requirements of sewage discharge permission and other ecological and environmental protection policies.

In 2021, the controlled generation capacity of the newly commissioned thermal generating units, wind generating units, solar power units and biomass units was 2,000 MW, 2,403.45 MW, 799 MW and 30 MW respectively. As of December 31, 2021, the Company's controlled and equity-based generation capacity was 118,695 MW and 103,875 MW, respectively.

In 2021, Tuas Power Ltd., 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 19.2%. The Singapore business recorded a pre-tax profit of RMB163 million for 2021, a year-on-year increase of 32 million.

Sahiwal coal-fired power plant in Pakistan is the first large-scale coal-fired power plant in the China-Pakistan Economic Corridor to be put into operation, which has greatly eased the power shortage in Pakistan. The Pakistan business recorded a pre-tax profit of RMB776 million for 2021, representing an increase of RMB38 million compared to the same period of last year.

In 2022, the Company will continue to implement the four strategies of green development, innovative development, safe development, and excellent operation, focus on improving the "five capabilities" of transformation and development, independent innovation, operation management, risk prevention and international management, and thoroughly implement the company's development strategy, and strive to create a new situation of high-quality development of the Company.

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Appendix: Consolidated financial information of the Company and its subsidiaries for 2021 prepared in accordance with the International Financial Reporting Standards.
https://mma.prnewswire.com/media/1771606/HPI_SEC_20211231.pdf

About Huaneng Power International, Inc.

Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 118,695 MW and equity-based generation capacity of 103,875 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. 
Mr. CHEN Zhelu / Ms. LIU Tianyu  
Tel:  (8610) 6322 6554 / 6322 6595
Fax: (8610) 6322 6888
Email: zqb@hpi.com.cn

Wonderful Sky Financial Group Limited

Ms. Ketrina Yang / Ms. Hester Li
Tel: (852) 3970 2171 / (852) 3970 2239
Fax: (852) 3102 0210
Email: hpi@wsfg.hk

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SOURCE Huaneng Power International, Inc.

FAQ

What were Huaneng Power's revenue and net profit for 2021?

Huaneng Power reported revenue of RMB204.605 billion and a net loss of RMB10.636 billion for 2021.

Why did Huaneng Power not propose a dividend for 2021?

The Board proposed no dividend due to a negative net profit attributable to equity holders for 2021.

How much power did Huaneng Power generate in 2021?

Huaneng Power generated 457.336 billion kWh of electricity in 2021, a 13.20% increase year-on-year.

What were the implications of rising coal prices for Huaneng Power?

Rising coal prices significantly impacted Huaneng Power's profitability, resulting in a 547.27% decrease in net profit.