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%

Rhea-AI Summary

Huaneng Power International (HNP) reported a consolidated operating revenue of RMB169.446 billion in 2020, a 2.62% decline from the previous year. However, net profit attributable to equity holders surged by 210.28% to RMB2.378 billion, driven by lower coal prices and reduced financial expenses. Earnings per share were RMB0.04. The company plans a cash dividend of RMB0.18 per share. Power generation slightly decreased by 0.24%, with a target of 410 billion kWh for 2021. The company continues to focus on clean energy and operational efficiency amid ongoing challenges from the COVID-19 pandemic.

Positive

• Net profit increased by 210.28% to RMB2.378 billion due to lower coal prices.
• Planned cash dividend of RMB0.18 per share indicates shareholder return.
• Successful decrease in unit fuel cost by 6.34%, enhancing profit margins.
• Tuas Power in Singapore improved market share by 0.7 percentage points to 21.4%.
• Pre-tax profit turnaround for Tuas Power, increasing from a loss of RMB569 million last year.

Negative

• Consolidated operating revenue decreased by 2.62% year-on-year.
• Power generation slightly decreased by 0.24%, indicating operational challenges.
• Net profit from Sahiwal coal-fired power plant dropped by RMB1 million compared to last year.

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 Zhelu
Tel: (8610) 6608 6750 / 6322 6596 / 6322 6554
Fax: (8610) 6322 6888
Email: zqb@hpi.com.cn

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

	As at December 31, 2020				As at 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 ventures	22,375,377		3,429,229		20,783,259
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 December 31, 2020				As at December 31, 2019
	RMB		US$		RMB
EQUITY AND LIABILITIES
Capital and reserves attributable to equity 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 liabilities	65,277		10,004		65,277
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 transformer facilities of HIPDC	(95,894)		(14,697)		(95,067)
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 of associates and joint ventures	1,774,322		271,931		1,185,622
Gain/(Loss) on fair value changes of financial assets/liabilities	(1,566)		(240)		36,667
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 profit or loss:
Fair value changes of other equity instrument investments	(175,984)		(26,971)		(61,652)
Share of other comprehensive income/(loss) of joint ventures and associates	(178,501)		(27,357)		367,528
Income tax effect	43,996		6,743		15,413
Items that may be reclassified subsequently to profit or loss:
Share of other comprehensive income/(loss) of joint ventures and associates	(4,348)		(666)		1,168
Cash flow hedges, net of tax:
Effective portion of changes in fair value of hedging instruments arising during the year	(166,323)		(25,491)		264,691
Reclassification adjustments for gains included in the consolidated statement of profit or loss	414,821		63,575		(119,793)
Exchange differences on translation of foreign operations	(862,454)		(132,179)		128,494
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 ordinary shareholders of the Company (expressed in RMB per 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.