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 March, 2005
(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
----- -----
(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
----- -----
(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 annual operating results for the year 2004 by Huaneng
Power International, Inc. in English on March 15, 2005.
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/ Huang Long
--------------
Name: Huang Long
Title: Company Secretary
Date: March 15, 2005
[GRAPHIC OMITTED]
To: Business Editor
[For Immediate Release]
HUANENG POWER INTERNATIONAL, INC.
Announces Annual Operating Results for 2004
Net Profit amounted to RMB 5.324 billion
(Beijing, China, March 15, 2005) Huaneng Power International, Inc. (the
"Company") [NYSE: HNP; HKEx: 902; SSE: 600011] today announced its audited
operating results under International Financial Reporting Standards for the
year ended December 31, 2004. The Company's net operating revenues for 2004
amounted to RMB30.118 billion (approximately US$3.639 billion based on the
exchange rate of US$1 to RMB8.2765 on December 31, 2004), a 28.78% increase
over 2003. Net profit was RMB5.324 billion (approximately US$643 million), a
1.96% decrease over 2003. Basic earnings per share was RMB0.44 (approximately
US$0.05). Basic earnings per American Depository Share (ADS) was RMB17.60
(approximately US$2.13). In view of the difficult situations of the coal
supply market in 2004, the Board of Directors of the Company was satisfied
with the operating results of last year.
The Board of Directors proposed to declare cash dividend of RMB0.25 per share
to all shareholders in 2004.
The main reason for the decline of the Company's net profit in 2004 was due to
the sharp increase of operation costs of the Company and its subsidiaries.
Although the increase in power generation and rise in tariffs had resulted in
a significant increase in the Company's net operating revenues in 2004, and
newly acquired plants (Xindian Power Plant and Yushe Power Plant acquired in
October 2003; and five power plants including Yingkou Power Plant,
Jinggangshan Power Plant, Yueyang Power Plant, Luohuang Power Plant and
Hanfeng Power Plant acquired in July 2004) had brought considerable profits to
the Company, these could not completely offset the increase in power
generation costs caused by escalating coal prices and its impact to profits.
Therefore, total net profit of the Company and its subsidiaries has dropped
when compared to RMB 5.430 billion in 2003.
In 2004, the operating power plants of the Company and its subsidiaries
achieved power generation totaling 114.28 billion kWh on a consolidated basis,
representing an increase of 25.7% over the same period of the previous year.
The average availability factor of the power plants of the Company was 93.84%,
with an average capacity factor of 72.92% while weighted average coal
consumption rates for power sold and power generated were 337.49 gram/kWh and
319.27 gram/kWh respectively. The weighted average house consumption rate was
5.64%. The Company's technical and economic indices remained at the forefront
among power companies in the PRC.
During 2004, the nationwide short supply of coal, rising coal prices and
declining coal quality caused great impact on the production and operation of
the Company. Although there is a relatively significant increase in power
generation when compared to the same period in 2003 and the Company has
adopted various measures to control costs, the Company still could not offset
the increase in power generation costs caused by escalating coal prices. Unit
fuel cost of the Company increased 32.97% when compared to the same period of
the previous year.
On power asset acquisition, during 2004 the Company has completed the largest
acquisition since its establishment. The Company acquired the equity interests
in five power plants including Jinggangshan Power Plant, Hanfeng Power Plant,
Yingkou Power Plant, Luohuang Power Plant and Yueyang Power Plant. Power
generation capacity on an equity basis increased by 3,096MW and generation
capacity under construction on an equity basis increased by 1,050MW. The
Company also acquired 60% equity interest in Sichuan Hydro Power and 65%
equity interest in Pingliang Power Plant from the China Huaneng Group
Corporation. The acquisitions were effective in January 2005, thereby
increasing the power generation capacity of the Company on an equity basis by
1,146MW and the generation capacity under construction of the Company on an
equity basis by 389MW. Owing to the current strong growth of demand for
electricity in the PRC and shortage of coal, both the acquisition of
hydropower assets for improving the energy structure of power generation and
the acquisition of mine-mouth power plant (such as Pingliang Power Plant) for
lowering fuel costs are instrumental in enhancing the profitability of the
Company and effectively controlling fuel costs.
In 2004, the Company is making good and smooth progress on the preliminary
work of its power plant construction and planned projects. Owing to the
Company's careful organisation and various parties' efforts, generating units
3 and 4 of Yushe Power Plant commenced commercial operation in October and
November 2004 respectively whereas generating units 1 and 2 of Qinbei Power
Plant also commenced commercial operation in November and December
respectively. Moreover, generating unit 3 and unit 4 of Huaiyin Power Plant
Phase II project commenced commercial operation in January and March 2005.
Construction works for one 600MW generating unit at Shantou Power Plant Phase
II, two 300MW generating units at Yueyang Power Plant Phase II, two 600MW
generating units at Taicang Phase II, two 600MW generating units at Luohuang
Phase III and two 1,000MW generating units at Yuhuan Phase I has been carried
out smoothly, with works quality and investment costs under effective control
and works being carried out on schedule.
Year 2005 is a year full of challenges and opportunities. On the one hand,
driven by the continued rapid development of the national economy, continued
growth in power demand will provide opportunities to the Company for stable
power generation. On the other hand, coal will continue to be in short supply
in 2005. However, the Company has full confidence and strength to seize
opportunities and overcome challenges, and will endeavor to fulfill the
following work objectives in 2005:
1. To enhance production safety and to ensure stable and safe power
generation;
2. To strengthen coal purchase management and ensure a safe, stable and
effective supply of coal;
3. To strengthen marketing and cost controls so as to increase income
and decrease expenses, thus enhancing economic returns;
4. To strengthen management of projects under construction so as to
achieve high quality, speedy completion, low costs and on-time
commencement of operation;
5. To enhance strategic planning to ensure a long-term, stable and
healthy development of the Company.
The Company develops, constructs, operates and manages large thermal power
plants in China nationwide, with a total generation capacity of 21,418MW on an
equity basis. The Company wholly owns 16 operating power plants, and has
controlling interests in ten operating power companies and minority interests
in four operating power companies. Today, the Company is one of the largest
independent power producers in China.
~ End ~
Attached are the consolidated financial information of the Company and its
subsidiaries as at and for the year ended December 31, 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
HUANENG POWER INTERNATIONAL, INC.
BALANCE SHEET
AS OF 31ST DECEMBER, 2004
(Amounts expressed in thousands)
The Company and its subsidiaries The Company
-------------------------------------- --------------------------------------
As of 31st December, As of 31st December,
-------------------------------------- --------------------------------------
2004 2003 2004 2003
-----------------------------------------------------------------------------
ASSETS (Rmb) (US$) (Rmb) (Rmb) (US$) (Rmb)
Non-current assets
Property, plant and equipment, net 57,780,410 6,981,261 42,658,365 36,861,955 4,453,810 34,290,511
Investment in associates 4,328,307 522,963 2,766,031 4,309,319 520,669 2,766,031
Investment in subsidiaries - - - 5,835,204 705,033 2,445,550
Available-for-sale investments 254,990 30,809 254,990 254,990 30,809 254,990
Land use rights 1,546,026 186,797 831,026 1,091,128 131,834 763,483
Other non-current assets 225,890 27,293 206,833 115,060 13,902 108,046
Deferred income tax assets 97,539 11,785 21,311 12,536 1,515 13,239
Goodwill 376,726 45,518 298,876 108,938 13,162 107,231
Less: Negative goodwill (1,483,670) (179,263) (1,730,949) (1,483,670) (179,263) (1,730,949)
----------- ------------ ------------ ------------ ----------- ------------
Total non-current assets 63,126,218 7,627,163 45,306,483 47,105,460 5,691,471 39,018,132
----------- ------------ ------------ ------------ ----------- ------------
Current assets
Inventories, net 1,431,404 172,948 800,281 822,344 99,359 624,762
Other receivables and assets, net 723,316 87,394 259,421 327,865 39,614 611,444
Accounts receivable 4,973,103 600,870 2,804,026 3,090,071 373,355 2,341,204
Due from subsidiaries - - - 20,256 2,447 3,437
Due from other related parties 14,970 1,809 5,862 14,970 1,809 5,862
Restricted cash 202,688 24,490 159,961 157,691 19,053 158,621
Temporary cash investments 12,641 1,527 144,996 12,641 1,527 69,660
Cash and cash equivalents 2,295,531 277,355 4,128,648 1,211,178 146,339 3,291,923
----------- ------------ ------------ ------------ ----------- ------------
Total current assets 9,653,653 1,166,393 8,303,195 5,657,016 683,503 7,106,913
----------- ------------ ------------ ------------ ----------- ------------
Total assets 72,779,871 8,793,556 53,609,678 52,762,476 6,374,974 46,125,045
=========== ============ ============ ============ =========== ============
EQUITY AND LIABILITIES
Shareholders equity
8,500,000,000 (2003: 4,250,000,000)
Domestic Shares, par value Rmb
1.00 each, in form of legal
person shares 8,500,000 1,027,004 4,250,000 8,500,000 1,027,004 4,250,000
500,000,000 (2003: 250,000,000) A
shares, par value Rmb 1.00 each 500,000 60,412 250,000 500,000 60,412 250,000
3,055,383,440 (2003: 1,527,671,200)
Overseas Listed Foreign Shares,
par value Rmb 1.00 each 3,055,383 369,164 1,527,671 3,055,383 369,164 1,527,671
Additional paid-in capital 8,972,184 1,084,055 10,780,133 8,972,184 1,084,055 10,780,133
Dedicated capital 4,065,970 491,267 4,328,423 4,065,970 491,267 4,328,423
Equity component of convertible
notes - - 255 - - 255
Retained earnings
Proposed dividend 3,013,846 364,145 3,013,836 3,013,846 364,145 3,013,836
Others 8,158,136 985,699 9,805,037 8,158,136 985,699 9,805,037
----------- ------------ ------------ ------------ ----------- ------------
Total shareholders equity 36,265,519 4,381,746 33,955,355 36,265,519 4,381,746 33,955,355
----------- ------------ ------------ ------------ ----------- ------------
Minority interests 3,266,393 394,659 1,155,197 - - -
----------- ------------ ------------ ------------ ----------- ------------
Non-current liabilities
Long-term loans from shareholders,
unsecured 800,000 96,659 - - - -
Long-term bank loans, unsecured 14,854,471 1,794,777 8,305,320 6,485,209 783,569 5,317,804
Other long-term loans, unsecured 300,818 36,346 848,284 - - 575,000
Deferred income tax liabilities 546,717 66,057 103,114 15,306 1,849 14,028
Other non-current liability 13,000 1,571 - - - -
----------- ------------ ------------ ------------ ----------- ------------
Total non-current liabilities 16,515,006 1,995,410 9,256,718 6,500,515 785,418 5,906,832
----------- ------------ ------------ ------------ ----------- ------------
Current liabilities
Accounts payable and other liabilities 4,551,158 549,887 3,342,517 2,844,987 343,742 2,906,516
Dividends payable to shareholders of
the Company 8,250 997 - 8,250 997 -
Taxes payable 999,792 120,799 917,362 547,545 66,157 601,337
Due to HIPDC 1,258,799 152,093 87,508 1,258,518 152,059 87,508
Due to other related parties 13,426 1,622 27,338 6,645 803 24,387
Staff welfare and bonus payables 259,291 31,329 220,896 175,355 21,187 212,875
Short-term loans, unsecured 8,099,000 978,554 1,600,000 4,330,000 523,168 280,000
Current portion of long-term loans
from shareholders, unsecured - - 420,380 - - 388,875
Current portion of long-term bank
loans, unsecured 1,257,476 151,933 2,409,240 825,142 99,697 1,756,074
Current portion of other long-term
loans, unsecured 285,761 34,527 211,881 - - -
Liability component of convertible notes
- - 935 - - 935
Other financial liabilities
- - 4,351 - - 4,351
----------- ------------ ------------ ------------ ----------- ------------
Total current liabilities 16,732,953 2,021,741 9,242,408 9,996,442 1,207,810 6,262,858
----------- ------------ ------------ ------------ ----------- ------------
Total equity and liabilities 72,779,871 8,793,556 53,609,678 52,762,476 6,374,974 46,125,045
=========== ============ ============ ============ =========== ============
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$1.00=Rmb8.2765 announced by the People's Bank of China as of 31st December, 2004. No representation
is made that Renminbi amounts could have been, or could be, converted into United States dollars at that rate as of 31st
December 2004. or at any other certain rate.
HUANENG POWER INTERNATIONAL, INC.
STATEMENT OF INCOME
FOR THE YEAR ENDED 31ST DECEMBER, 2004
(Amounts expressed in thousands, except per share data)
The Company and its subsidiaries
-------------------------------------------------------------
For the Year ended 31st December,
-------------------------------------------------------------
2004 2003 2002
------------------------------ -------------- --------------
(Rmb) (US$) (Rmb) (Rmb)
Operating revenue, net 30,118,278 3,639,011 23,388,237 18,474,469
-------------- -------------- -------------- --------------
Operating expenses
Fuel (15,068,188) (1,820,599) (9,025,013) (6,916,038)
Maintenance (807,689) (97,588) (921,561) (607,951)
Depreciation (4,706,992) (568,718) (4,117,478) (3,533,609)
Labor (1,877,264) (226,819) (1,439,673) (1,035,740)
Service fees to HIPDC (133,609) (16,143) (214,723) (263,716)
Others (606,346) (73,261) (596,627) (539,401)
-------------- -------------- -------------- --------------
Total operating expenses (23,200,088) (2,803,128) (16,315,075) (12,896,455)
-------------- -------------- -------------- --------------
Profit from operations 6,918,190 835,883 7,073,162 5,578,014
-------------- -------------- -------------- --------------
Interest income 43,092 5,207 53,044 83,015
Interest expense (663,424) (80,158) (569,148) (561,875)
Bank charges and exchange losses, net (119,452) (14,433) (28,181) (31,405)
-------------- -------------- -------------- --------------
Total financial expenses (739,784) (89,384) (544,285) (510,265)
-------------- -------------- -------------- --------------
Share of profit of associates 377,565 45,619 212,091 (11,145)
Investment income 22,542 2,724 - -
(Loss) / Gain from disposal of
investments (1,988) (240) 10,705 1,288
Other income, net 18,666 2,255 12,070 -
-------------- -------------- -------------- --------------
Profit before tax 6,595,191 796,857 6,763,743 5,057,892
Income tax expense (1,014,262) (122,547) (1,149,441) (980,854)
-------------- -------------- -------------- --------------
Profit before minority interests 5,580,929 674,310 5,614,302 4,077,038
Minority interests (257,053) (31,058) (183,894) (156,034)
-------------- -------------- -------------- --------------
Net profit attributable to shareholders 5,323,876 643,252 5,430,408 3,921,004
============== ============== ============== ==============
Dividends paid and proposed 6,019,432 727,292 5,063,244 3,849,408
============== ============== ============== ==============
Proposed dividend 3,013,846 364,145 3,013,836 2,049,408
============== ============== ============== ==============
Proposed dividend per share 0.25 0.03 0.25 0.17
============== ============== ============== ==============
Basic earnings per share 0.44 0.05 0.45 0.33
============== ============== ============== ==============
Diluted earnings per share 0.44 0.05 0.45 0.33
============== ============== ============== ==============
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=Rmb8.2765 announced by the People's Bank of China as of 31st December,
2004. No representation is made that Renminbi amounts could have been, or
could be, converted into United States dollars at that rate as of 31st
December 2004, or at any other certain rate.