FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August, 2004
(Indicate by check mark whether the registrant files or
will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934. )
Yes No X
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(If "Yes" is marked, indicate below the file number assigned to
registrant in connection with Rule 12g3-2(b): 82-__________. )
N/A
Huaneng Power International, Inc.
West Wing, Building C, Tianyin Mansion
No. 2C Fuxingmennan Street
Xicheng District
Beijing, 100031 PRC
This Form 6-K consists of:
A press release on the announcement on 2004 interim results, made on
August 10, 2004, in English by Huaneng Power International Inc.
[GRAPHIC OMITTED]
TO: BUSINESS EDITOR
[FOR IMMEDIATE RELEASE]
HUANENG POWER INTERNATIONAL, INC.
Announces 2004 Interim Results
Net Profit Increases 8.58% to RMB 2,481 Million
(Beijing, China, August 10, 2004) Huaneng Power International, Inc. (the
"Company") [NYSE: HNP; HKEx: 902; SSE: 600011] today announced its unaudited
operating results for the six months period ended June 30, 2004.
Net operating revenues of the Company and its subsidiaries for the first half
of 2004 were RMB12.964 billion (equivalent to US$1.566 billion), representing
an increase of 23.30% compared to the same period last year. Consolidated net
profit was RMB2.481 billion (equivalent to US$0.30 billion), representing an
increase of approximately 8.58% compared to the same period last year.
Earnings per share was RMB0.21 or RMB8.23 for each American Depositary Share
(equivalent to US$0.99). The board of directors does not recommend any interim
dividends for year 2004.
During the first half of 2004, the PRC's national economy continued to
maintain rapid and steady growth with GDP growth rate reaching 9.7%, which led
to a rapid increase in power demand, and power generation of the State
increased 15.8% when compared to the same period last year. The macro-control
policies and measures adopted by the State began to see their impact. However,
there were still difficulties regarding the fuel transportation for power
generation. The trend of overall tight power supply has not been eased, in
particular the drastic increase in coal prices brought great pressure upon
cost control efforts of the Company. The Company's management and staff made
great efforts to seize the favorable opportunities as presented by substantial
increase in power demand brought about by the rapid growth of the national
economy, working hard to cope with the challenges of tight fuel supply,
drastic coal price increase and declining coal quality. Facing the
increasingly keen competition in the power market, the Company made its best
endeavours to overcome the difficulties with every possible means, thus
accomplishing generation and operation tasks in the first half of this year.
During the first half of this year, the Company's power plants achieved power
generation totalling 48.83 billion kWh on a consolidated basis, representing
an increase of 18.87% over the same period last year. The growth of power
generation was mainly attributable to the power generation contributed by
Yushe Power Plant and Xindian Power Plant acquired in 2003, and by the stable
generation capacity created by the newly operated generating units no.5 and 6
at Jining Power Plant. On the other hand, continued rapid growth of power
consumption in the regions where the Company's power plants are located also
created favorable conditions for the Company to increase its power generation.
Huaneng Power International, Inc. Announces 2004 Interim Results...P.2
In the aspect of cost control, the persistent rise in coal prices since the
end of 2003 had brought about a significant impact on the Company's generation
and operation. Such effect became particularly conspicuous since the second
quarter of 2004 as the coal price had been surging prominently. Despite the
relatively significant increase in power generation as compared to the same
period last year and the implementation of various cost control measures by
the Company, such gain still could not offset the increase in power generation
costs brought about by the rise in coal prices. The unit fuel cost of the
Company for the first half of the year increased by 25.85% when compared to
the same period last year. Facing such unfavorable operating situation, the
Company adopted measures in a timely manner to actively implement and enhance
the planned realization rate of the State's major coal contracts; increased
the supply of coal with good quality and competitive prices through the
amicable business relationship established with large-sized coal enterprises;
entered into medium to-long-term coal supply agreements with major coal supply
enterprises and established stable long-term supply and demand relationships;
actively and effectively commenced work on coal imports; and reinforced the
transportation co-ordination with shipping companies, thereby relieving the
delivery pressure. Besides, the Company further enhanced its internal
management and tapped on its full potential: through coal blending burning,
the price-rising pressure of the main coal and coal source could be eased; and
through the process of up-grading the generating units, the Company it reduced
the unit coal consumption, and to a large extent minimized the adverse effect
brought about by the increase in coal prices to the Company.
Apart from stringent cost controls, the Company has been actively involved in
new development projects. During the first half of the year, projects under
construction including Qinbei Phase I, Yushe Phase II, Huaiyin Phase II and
Shantou Phase II were all running smoothly and the proposed projects of the
company progressed smoothly.
Besides, the Company has been actively acquiring new power assets in order to
enhance its operation scale and profitability. On April 16, 2004, the Company
entered into a transfer agreement with China Huaneng Group ("Huaneng Group"),
Huaneng International Power Development Corporation ("HIPDC") and Jiangxi
Provincial Investment Company. Pursuant to the transfer agreement, the Company
acquired the following power assets for RMB4.575 billion: (1) 90% equity
interest in Jinggangshan Huaneng Power Limited Liability Company and 40%
equity interest in Hebei Hanfeng Power Limited Liability Company, both owned
by Huaneng Group; (2) all the assets and liabilities of Yingkou Power Plant,
60% equity interest in Huaneng Chongqing Luohuang Power Limited Liability
Company and 55% equity interest in Huaneng Hunan Yueyang Power Limited
Liability Company, all owned by HIPDC; (3) 10% equity interest in Jinggangshan
Power Plant owned by Jiangxi Provincial Investment Company. Currently, these
acquisitions have been completed and the generation capacity on an equity
basis of the Company increased by 3,096MW.
In the second half of the year 2004, demand will still be greater than supply
in the power market. On the other hand, tight coal supply and continued
increase in coal prices have aroused great concern to the relevant departments
of the State. The management of the Company will continue to put optimization
of shareholders' interests as its business objective and work targets, seizing
the opportunities and overcoming the difficulties. Accordingly, the management
and all staff of the Company will make joint efforts and overcome the
difficulties to ensure the achievement of the annual targets in terms of
generation and operations, bringing sustainable, steady and increasing returns
to the shareholders.
Huaneng Power International, Inc. Announces 2004 Interim Results...P.3
Huaneng Power International, Inc. develops, constructs, operates and manages
large thermal power plants in China nationwide, with a total generation
capacity of 18,832MW on an equity basis. The Company wholly owns 16 power
plants, and has controlling interests in seven power plants and minority
interests in four power companies. Today, it is one of the largest independent
power producers in China.
~ End ~
For any details regarding the interim results, please refer to the
announcements published on Wen Wei Po and South China Morning Post dated
August 11, 2004. The soft copy of the announcement will also be made available
at the following websites:
Hong Kong Stock Exchange: http://www.hkex.com.hk
The Company: http://www.hpi.com.cn
Encl: The unaudited condensed consolidated balance sheet and condensed
consolidated income statement of the Company and its subsidiary for
the six months period ended June 30, 2004, prepared under
International Financial Reporting Standards.
For further information, please contact:
Ms. Meng Jing / Ms. Zhao Lin Huaneng Power International, Inc. Tel: (8610)
6649 1856 / 1866
Fax: (8610) 6649 1860
Email: ir@hpi.com.cn
Ms. Christy Lai / Ms. Edith Lui Rikes Communications Limited
Tel: (852) 2520 2201
Fax:(852) 2520 2241
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
under-signed, thereunto duly authorized.
HUANENG POWER INTERNATIONAL, INC.
By /s/ Wang Xiaosong
------------------------------
Name: Wang Xiaosong
Title: Vice Chairman
Date: August 10, 2004