HUANENG POWER INTERNATIONAL, INC.
 


 

 

Annual Report On Form 20-F
20142016



 


As filed with the Securities and Exchange Commission on April 16, 201517, 2017

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
_______________________
FORM 20-F
(Mark One)
¨☐REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
þ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 20142016
OR
¨☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
¨☐SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
For the transaction period form _______to ______________
Commission file number: 1-13314
华能国际电力股份有限公司

HUANENG POWER INTERNATIONAL, INC.

(Exact name of Registrant as specified in its charter)
PEOPLE’SPEOPLE'S REPUBLIC OF CHINA

(Jurisdiction of incorporation or organization)
HUANENG BUILDING

6 FUXINGMENNEI STREET, XICHENG DISTRICT, BEIJING, PEOPLE’SPEOPLE'S REPUBLIC OF CHINA

(Address of principal executive offices)
Mr. Du Daming

HUANENG BUILDING,

6 FUXINGMENNEI STREET, XICHENG DISTRICT, BEIJING, PEOPLE’SPEOPLE'S REPUBLIC OF CHINA

Tel: +86 (10) 6322 6999 Fax: +86 (10) 6322 6888

(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of Each Class
Name of each exchange

on which registered
American Depositary Shares Each Representing 40 Overseas Listed SharesNew York Stock Exchange
Overseas Listed Shares with Par Value of RMB1.00 Per ShareNew York Stock Exchange*
Securities registered or to be registered pursuant to Section 12(g) of the Act.
NONE
(Title of Class)
_______________________
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
NONE
(Title of Class)
_______________________
Indicate the number of outstanding shares of each of the issuer’sissuer's classes of capital or common stock as of the close of the period covered by the annual report:
Domestic A Shares with Par Value of RMB1.00 Per Share
10,500,000,000
Overseas Listed Shares with Par Value of RMB1.00 Per Share3,920,383,440
 4,700,383,440
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes þ☒ No ¨☐
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ¨☐ No þ☒
Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes þ☒ No ¨☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ¨☐ No ¨☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated"accelerated filer and large accelerated filer”filer" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer þLarge accelerated filer ☒                       Accelerated filer ☐                       Non-accelerated filer ☐
Accelerated filer ¨
Non-accelerated filer ¨
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP ¨☐
 
International Financial Reporting Standards as issued by the International Accounting Standards Board þ☒
 
Other ¨☐

If “Other”"Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 ¨☐ Item 18 ¨☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨☐ No þ☒
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes ¨☐ No ¨☐

*Not for trading, but only in connection with the registration of American Depositary Shares


TABLE OF CONTENTS
PART I1
ITEM 1Identity of Directors, Senior Management and Advisers1
ITEM 2Offer Statistics and Expected Timetable1
ITEM 3  Key Information1
ITEM 3Key Information1
A.Selected financial data1
B.Capitalization and indebtedness32
C.Reasons for the offer and use of proceeds32
D.Risk factors32
ITEM 4Information on the Company1012
A.History and development of the Company1012
B.Business overview1214
C.Organizational structure2230
D.Property, plants and equipment2331
ITEM 4AUnresolved Staff Comments4577
ITEM 5Operating and Financial ReviewReviews and Prospects4577
A.General4577
B.Operating results4879
C.Financial position5996
D.Liquidity and cash resources6098
E.Trend information64102
F.Employee benefits64103
G.Guarantees and pledges onfor loans and restricted assets65103
H.Off-balance sheet arrangements65104
I.Performance of significant investments and their prospects66104
J.Tabular disclosure of contractual obligations and commercial commitments66104
K.Impairment sensitivity analysisSensitivity analysis to impairment test67105
L.Prospects for 2017Business plan67106
ITEM 6Directors, Senior Management and Employees67106
A.Directors, members of the supervisory committee and senior management67106
B.Compensation for Directors, Supervisors and Executive Officers70110
C.Board practice71111
D.Employees72112
E.Share ownership72112
ITEM 7Major Shareholders and Related Party Transactions73113
A.Major shareholders73113
B.Related party transactions74115
C.Interests of experts and counsel82121
ITEM 8Financial Information82121
A.Consolidated statements and other financial information82121
B.Significant changes83122
ITEM 9The Offer and Listing83122
A.Offer and listing details and markets83122
ITEM 10Additional Information84123
A.Share capital84123
B.Memorandum and articles of association84123
C.Material contracts89130
D.Exchange controls89130
E.Taxation90131
F.Dividends and paying agents94136
G.Statement by experts95136
H.Documents on display95137
I.Subsidiary information95137
ITEM 11Quantitative and Qualitative Disclosures About Market Risk95137

i

ITEM 12Description of Securities Other than Equity Securities98141
A.Debt Securities98141
B.Warrants and Rights98141
C.Other Securities98141
D.American Depositary Shares98141
i

PART II100142
ITEM 13Defaults, Dividend Arrearages and Delinquencies100142
ITEM 14Material Modifications to the Rights of Security Holders and Use of Proceeds100142
ITEM 15Controls and Procedures100142
ITEM 16Reserved102144
ITEM 16AAudit Committee Financial Expert102144
ITEM 16BCode of Ethics102144
ITEM 16CPrincipal Accountant Fees and Services102144
ITEM 16DExemptions from the Listing Standards for Audit Committees103145
ITEM 16EPurchases of Equity SecuritiesSecurity by the Issuer and Affiliated Purchasers103145
ITEM 16FChange in Registrant’sRegistrant's Certifying Accountant103145
ITEM 16GCorporate Governance103145
ITEM 16HMine Safety Disclosure105149
ITEM 17Financial Statements105149
ITEM 18Financial Statements105149
ITEM 19Exhibits106149


ii


INTRODUCTION
We maintain our accounts in Renminbi Yuan (“Renminbi”("Renminbi" or “RMB”"RMB"), the lawful currency of the People’sPeople's Republic of China (the “PRC”"PRC" or “China”"China"). References herein to “US$”"US$" or “U.S. dollars”"U.S. dollars" are to United States Dollars, references to “HK$”"HK$" are to Hong Kong Dollars, and references to “S$”"S$" are to Singapore Dollars. References to ADRs and ADSs are to American Depositary Receipts and American Depositary Shares, respectively. Translations of amounts from Renminbi to U.S. Dollars are solely for the convenience of the reader. Unless otherwise indicated, any translations from Renminbi to U.S. Dollars or from U.S. Dollars to Renminbi were translated at the average rate announced by the People’sPeople's Bank of China (the “PBOC Rate”"PBOC Rate") on December 31, 20142016 of US$1.00 to RMB6.1190.RMB6.9370. No representation is made that the Renminbi or U.S. Dollar amounts referred to herein could have been or could be converted into U.S. Dollars or Renminbi, as the case may be, at the PBOC Rate or at all.
References to “A Shares”"A Shares" are to common tradable shares issued to domestic shareholders.
References to the “central government”"central government" refer to the national government of the PRC and its various ministries, agencies and commissions.
References to the “Company”"Company", “we”"we", “our”"our" and “us”"us" include, unless the context requires otherwise, Huaneng Power International, Inc. and the operations of our power plants and our construction projects.
References to “HIPDC”"HIPDC" are to Huaneng International Power Development Corporation and, unless the context requires otherwise, include the operations of the Company prior to the formation of the Company on June 30, 1994.
References to “Huaneng Group”"Huaneng Group" are to China Huaneng Group.
References to the “key contracts” refer to coal purchase contracts entered into between the Company and coal suppliers for the amount of coals at the annual national coal purchase conferences attended by, among others, representatives of power companies, coal suppliers and railway authorities. These conferences were coordinated and sponsored by National Development and Reform Commission (“NDRC”). The Company enjoys priority railway transportation services with respect to coal purchased under such contracts. Starting from 2008, NDRC ceased to coordinate the annual national coal purchase conferences. At the end of each year subsequent to 2008, the National Railway Administration (previously, the Ministry of Railways) will promulgate the railway transportation capacity plan for the next year. References to the “key contracts” for the year 2008 and thereafter refer to coal purchase contracts entered into between the Company and coal suppliers under the guidance of such railway transportation capacity plan, which, once confirmed by the National Railway Administration, secures the railway transportation capacity for the coal purchased thereunder. Starting from the beginning of 2013, key contracts were terminated pursuant to a notice issued by the PRC Government in December 2012.
References to “local governments”"local governments" in the PRC are to governments at all administrative levels below the central government, including provincial governments, governments of municipalities directly under the central government, municipal and city governments, county governments and township governments.
References to “our"our power plants”plants" are to the power plants that are wholly owned by the Company or to the power plants in which the Company owns majority equity interests.
References to the “PRC Government”"PRC Government" include the central government and local governments.
References to “provinces”"provinces" include provinces, autonomous regions and municipalities directly under the central government.
References to “Singapore”"Singapore" are to the Republic of Singapore.
iii
References to the “State Plan”"State Plan" refer to the plans devised and implemented by the PRC Government in relation to the economic and social development of the PRC.
References to “tons”"tons" are to metric tons.
Previously, the Overseas Listed Foreign Shares were also referred to as the “Class"Class N Ordinary Shares”Shares" or “N Shares”"N Shares". Since January 21, 1998, the date on which the Overseas Listed Foreign Shares were listed on The Stock Exchange of Hong Kong Limited by way of introduction, the Overseas Listed Foreign Shares have been also referred to as “H Shares”"H Shares".

iiiiv


GLOSSARY
actual generation The total amount of electricity generated by a power plant over a given period of time.
   
auxiliary power Electricity consumed by a power plant in the course of generation.
   
availability factor For any period, the ratio (expressed as a percentage) of a power plant’splant's available hours to the total number of hours in such period.
   
available hours For a power plant for any period, the total number of hours in such period less the total number of hours attributable to scheduled maintenance and planned overhauls as well as to forced outages, adjusted for partial capacity outage hours.
   
capacity factor The ratio (expressed as a percentage) of the gross amount of electricity generated by a power plant in a given period to the product of (i) the number of hours in the given period multiplied by (ii) the power plant’splant's installed capacity.
   
demand For an integrated power system, the amount of power demanded by consumers of energy at any point in time.
   
dispatch The schedule of production for all the generating units on a power system, generally varying from moment to moment to match production with power requirements. As a verb, to dispatch a plant means to direct the plant to operate.
   
GW Gigawatt. One million kilowatts.
   
GWh Gigawatt-hour. One million kilowatt-hours. GWh is typically used as a measure for the annual energy production of large power plants.
   
installed capacity The manufacturers’manufacturers' rated power output of a generating unit or a power plant, usually denominated in MW.
   
kV Kilovolt. One thousand volts.
   
kW Kilowatt. One thousand watts.
   
kWh Kilowatt-hour. The standard unit of energy used in the electric power industry. One kilowatt-hour is the amount of energy that would be produced by a generator producing one thousand watts for one hour.
   
MVA Million volt-amperes. A unit of measure used to express the capacity of electrical transmission equipment such as transformers.
   
MW Megawatt. One million watts. The installed capacity of power plants is generally expressed in MW.
   
MWh Megawatt-hour. One thousand kilowatt-hours.
   
peak load The maximum demand on a power plant or power system during a specific period of time.
   
planned generation An annually determined target gross generation level for each of our operating power plants used as the basis for determining planned output.
   
total output The actual amount of electricity sold by a power plant in a particular year, which equals total generation less auxiliary power.
   
transmission losses Electric energy that is lost in transmission lines and therefore is unavailable for use.
ivv

PART I
ITEM 1ITEM 1   Identity of Directors, Senior Management and Advisers
Not applicable.
ITEM 2ITEM 2   Offer Statistics and Expected Timetable
Not applicable.
ITEM 3   Key Information
ITEM 3Key Information
A.A.            Selected financial data
Our consolidated balance sheet data of financial position as of December 31, 20142016 and 20132015 and the consolidated income statement and cash flow data for each of the years in the three-year period ended December 31, 20142016 are derived from the historical financial statements included herein. Our consolidated balance sheet data of financial position as of December 31, 2012, 20112014, 2013 and 20102012 and consolidated income statement and cash flow data for each of the years in the two-year period ended December 31, 2011,2013, are derived from the historical financial statements not included herein. The Selected Financial Data should be read in conjunction with the consolidated financial statements and “Item"Item 5 Operating and Financial ReviewReviews and Prospects”Prospects". The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”("IFRS") as issued by the International Accounting Standards Board. The Selected Financial Data may not be indicative of future earnings, cash flows or financial position.
  Year Ended December 31, 
  2012  2013  2014  2015  2016 
RMB in thousands except
per share data
 (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
Consolidated Income Statement Data 
Operating revenue  133,966,659   133,832,875   125,406,855   128,904,873   113,814,236 
Tax and levies on operations  (672,040)  (1,043,855)  (932,485)  (1,157,760)  (1,177,818)
Operating expenses  (116,337,679)  (108,677,981)  (99,199,728)  (98,604,187)  (94,258,678)
Profit from operations  16,956,940   24,111,039   25,274,642   29,142,926   18,377,740 
Interest income  175,402   170,723   159,550   160,723   147,063 
Financial expenses, net  (9,063,875)  (7,693,363)  (7,823,606)  (7,970,070)  (7,067,602)
Other investment income  187,131   224,908   80,580   115,238   1,070,034 
(Loss)/Gain on fair value changes of
financial assets/liabilities
  (1,171)  (5,701)  42,538   (16,742)  (12,986)
Share of profits less losses of associates and joint ventures  622,358   615,083   1,315,876   1,525,975   1,298,889 
Profit before income tax expense  8,876,785   17,422,689   19,049,580   22,958,050   13,813,138 
Income tax expense  (2,510,370)  (4,522,671)  (5,487,208)  (5,698,943)  (3,465,151)
Net profit  6,366,415   
12,900,018
   
13,562,372
   
17,259,107
   
10,347,987
 
Attributable to: ��                  
Equity holders of the Company  5,512,454   10,426,024   10,757,317   13,651,933   8,520,427 
Non-controlling interests  853,961   2,473,994   2,805,055   3,607,174   1,827,560 
Basic earnings per share  0.39   0.74   0.76   0.94   0.56 
Diluted earnings per share  0.39   0.74   0.76   0.94   0.56 

  
Year Ended December 31,
 
  
2010
  
2011
  
2012
  
2013
  
2014
 
RMB in thousands except per share data (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
Consolidated Income Statement Data               
                
Operating revenue  104,318,120   133,420,769   133,966,659   133,832,875   125,406,855 
Tax and levies on operations  (147,641)  (484,019)  (672,040)  (1,043,855)  (932,485)
Operating expenses  (95,541,488)  (124,189,148)  (116,337,679)  (108,677,981)  (99,199,728)
Profit from operations  8,628,991   8,747,602   16,956,940   24,111,039   25,274,642 
Interest income  89,026   166,183   175,402   170,723   159,550 
Financial expenses, net  (5,194,585)  (7,659,712)  (9,063,875)  (7,693,363)  (7,823,606)
Other investment income  60,013   93,460   187,131   224,908   80,580 
Gain/ (Loss) on fair value changes of financial assets/ liabilities  11,851   (727)  (1,171)  (5,701)  42,538 
Share of profits less losses of of associates and joint ventures  568,794   703,561   622,358   615,083   1,315,876 
Profit before income tax expense  4,164,090   2,050,367   8,876,785   17,422,689   19,049,580 
Income tax expense  (842,675)  (868,927)  (2,510,370)  (4,522,671)  (5,487,208)
Net profit  3,321,415   1,181,440   6,366,415   12,900,018   13,562,372 
Attributable to:                    
Equity holders of the Company  3,347,985   1,180,512   5,512,454   10,426,024   10,757,317 
Non-controlling interests  (26,570)  928   853,961   2,473,994   2,805,055 
Basic earnings per share  0.28   0.08   0.39   0.74   0.76 
Diluted earnings per share  0.28   0.08   0.39   0.74   0.76 
1

  As of December 31, 
  2012  2013  2014  2015  2016 
RMB in thousands (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
Consolidated Financial Position Data               
Current assets  36,086,261   34,186,911   37,865,284   33,565,403   36,966,616 
Property, plant and equipment  177,013,627   181,415,181   188,379,057   219,673,070   223,061,809 
Available-for-sale financial assets  3,052,822   3,111,164   4,333,377   5,077,863   3,406,032 
Investments in associates and joint ventures  14,596,771   16,678,694   17,626,910   19,745,192   19,632,113 
Land use rights and other non-current assets  9,316,455   9,593,252   10,636,352   14,384,078   14,524,284 
Power generation license  4,084,506   3,837,169   3,720,959   3,679,175   3,849,199 
Deferred income tax assets  532,387   652,358   884,274   1,064,391   1,263,957 
Goodwill  14,417,543   
12,758,031
   
11,725,555
   
11,677,182
   
12,135,729
 
Total assets  259,100,372   
262,232,760
   
275,171,768
   
308,866,354
   
314,839,739
 
Current liabilities  (93,594,320)  (98,978,845)  (104,846,121)  (123,836,633)  (130,196,251)
Non-current liabilities  (99,545,710)  (88,060,941)  (85,542,941)  (83,336,032)  (82,456,751)
Total liabilities  (193,140,030)  (187,039,786)  (190,389,062)  (207,172,665)  (212,653,002)
Total equity  65,960,342   
75,192,974
   
84,782,706
   
101,693,689
   
102,186,737
 

  Year Ended December 31, 
  2012  2013  2014  2015  2016 
RMB in thousands except per share data (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
Consolidated Cash Flow Data               
                
Purchase of property, plant and equipment  (15,474,614)  (17,691,382)  (19,858,216)  (24,191,285)  (20,144,903)
Net cash provided by operating activities  26,928,082   40,239,429   33,320,067   42,362,708   31,510,824 
Net cash used in investing activities  (15,309,604)  (19,054,250)  (19,470,813)  (33,015,012)  (17,649,646)
Net cash used in financing activities  (9,816,900)  (22,240,088)  (10,894,180)  (14,140,659)  (13,601,850)
                     
Other Company Data                    
                     
Dividend declared per share  0.21   0.38   0.38   0.47   0.29 
Number of ordinary shares ('000)  14,055,383   14,055,383   14,420,383   15,200,383   15,200,383 
  
As of December 31
 
  
2010
  
2011
  
2012
  
2013
  
2014
 
RMB in thousands (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
                
Consolidated Balance Sheet Data               
                
Current assets  31,556,149   36,417,338   36,086,261   34,186,911   37,865,284 
Property, plant and equipment  155,224,597   177,968,001   177,013,627   181,415,181   188,379,057 
Available-for-sale financial assets  2,223,814   2,301,167   3,052,822   3,111,164   4,333,377 
Investments in associates and joint ventures  11,973,216   13,588,012   14,596,771   16,678,694   17,626,910 
Land use rights and other non-current assets  9,541,540   8,820,722   9,316,455   9,593,252   10,636,352 
Power generation license  4,105,518   3,904,056   4,084,506   3,837,169   3,720,959 
Deferred income tax assets  672,475   526,399   532,387   652,358   884,274 
Goodwill  12,640,904   13,890,179   14,417,543   12,758,031   11,725,555 
Total assets  227,938,213   257,415,874   259,100,372   262,232,760   275,171,768 
Current liabilities  (83,636,880)  (96,597,620)  (93,594,320)  (98,978,845)  (104,846,121)
Non-current liabilities  (81,875,861)  (101,260,501)  (99,545,710)  (88,060,941)  (85,542,941)
Total liabilities  (165,512,741)  (197,858,121)  (193,140,030)  (187,039,786)  (190,389,062)
Total equity  62,425,472   59,557,753   65,960,342   75,192,974   84,782,706 


  
Year Ended December 31,
 
  
2010
  
2011
  
2012
  
2013
  
2014
 
RMB in thousands except per share data (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
                
Consolidated Cash Flow Data               
                
Purchase of property, plant and equipment  (20,704,224)  (16,673,632)  (15,474,614)  (17,691,382)  (19,858,216)
Net cash provided by operating activities  18,066,724   20,949,155   26,928,082   40,239,429   33,320,067 
Net cash used in investing activities  (26,980,538)  (21,664,831)  (15,309,604)  (19,054,250)  (19,470,813)
Net cash provided by / (used in) financing activities  13,063,323   69,648   (9,816,900)  (22,240,088)  (10,894,180)
                     
Other Company Data                    
                     
Dividend declared per share  0.20   0.05   0.21   0.38   0.38 
Number of ordinary shares (‘000)  14,055,383   14,055,383   14,055,383   14,055,383   14,420,383 
2
B.B.            Capitalization and indebtedness
Not applicable.
C.C.            Reasons for the offer and use of proceeds
Not applicable.
D.D.            Risk factors
Risks relating to our business and the PRC’sPRC's power industry
Government regulation of on-grid power tariffs and other aspects of the power industry may adversely affect our business
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Similar to electric power companies in other countries, we are subject to governmental and electric grid regulations in virtually all aspects of our operations, including the amount and timing of electricity generations, the setting of on-grid tariffs, the performance of scheduled maintenance, and the compliance with power grid control and dispatch directives as well as environment protection regulations. There can be no assurance that these regulations will not change in the future in a manner which could adversely affect our business.
The on-grid tariffs for our planned output are subject to a review and approval process involving the NDRC and the relevant provincial government. Since April 2001, the PRC Government has been implementing an on-grid tariff-setting mechanism based on the operating terms of power plants as well as the average costs of comparable power plants. Pursuant to the NDRC circular issued in June 2004, the on-grid tariffs for our newly built power generating units commencing operation from June 2004 have been set on the basis of the average cost of comparable units adding tax and reasonable return in the regional grid. Any future reductions in our tariffs, or our inability to raise tariffs (for example, to cover any increased costs we may have to incur) as a result of the new on-grid tariff-setting mechanism, may adversely affect our revenue and profit.
profits.
In addition, the PRC Government started a program in 1999 to effect power sales through competitive bidding in some of the provinces where we operate our power plants. The on-grid tariffs for power sold through competitive bidding are generally lower than the pre-approved on-grid tariffs for planned output. In the more recent few years, power sales through competitive bidding only accounted for a small portion of our overall power sales. Nevertheless, the PRC Government is seeking to expand the program. Any increased power sales through competitive bidding may reduce our on-grid tariffs and may adversely affect our revenue and profits.
Furthermore, the PRC Government started in 2009 to promote the practice of direct power purchase by large power end-users. Pursuant to the circular jointly issued by NDRC, the State Electricity Regulatory Commission (“SERC”("SERC") and China National Energy Administration in June 2009, the direct power purchase price consists of direct transaction price, on-grid dispatch and distribution price and governmental levies and charges, in which the direct transaction price shall be freely determined through negotiation between the power generation company and the large power end-user. The price of direct power purchase shall be subject to the supply and demand in the power market, and may increase due to power supply shortfall.market. Furthermore, the scale and mode of the transaction are also subject to the structure and level of development of local economy. In terms of power generation companies engaged in direct power purchase, direct power sales constitute a portion of the total power sales and the on-grid power tariffs for this portion are generally lower than the benchmark tariff of each region, thus affecting the on-grid power sales of the Company. In 2013,For the past few years, the PRC Government continued the reform in the area of direct power purchase by large power end-users. In July 2013, China National Energy Administration issued the Notice on Direct Purchases between Power End-users and Power Generation Companies, which officially implementedlaunched the direct purchases programs by large end-users. Among thepower purchase program in seven provinces where we operate ourhave power plants seven of them, namely Shanxi, Jiangsu, Henan, Hunan, Guangdong, Fujian, and Gansu, had started the direct purchase program has been steadily rolled out in 2013, and four of them, namely Jiangxi, Yunnan, Hubei and Liaoning, are actively promoting the direct purchase pilot program.  In 2014, direct purchase programs by large end-users were also implemented in Zhejiang and Anhui.other provinces, Although the direct power purchase may act as an alternative channel for our power sales, there is uncertainty as to the effect of the practice of direct power purchase over our operating results.
The on-grid tariff-setting mechanism is evolving with the reforming of the PRC electric power industry. The PRC government announced a number of development and reform plans for the power market in 2016, covering areas including laws and regulations, power transmission and distribution prices and supply side dynamics. There is no assurance that it will not change in a manner which could adversely affect our business and results of operations. See “Item"Item 4 Information of the Company – B. Business Overview – Pricing Policy”Policy".
If our power plants receive less dispatching than planned generation, the power plants will sell less electricity than planned
Our profitability depends, in part, upon each of our power plants generating electricity at a level sufficient to meet or exceed the planned generation, which in turn will be subject to local demand for electric power and dispatching to the grids by the dispatch centers of the local grid companies.

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The dispatch of electric power generated by a power plant is controlled by the dispatch center of the applicable grid companies pursuant to a dispatch agreement with us and to governmental dispatch regulations. In each of the markets we operate, we compete against other power plants for power sales. No assurance can be given that the dispatch centers will dispatch the full amount of the planned generation of our power plants. A reduction by the dispatch center in the amount of electric power dispatched relative to a power plant’splant's planned generation could
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have an adverse effect on the profitability of our operations. However, we have not encountered any such event in the past.
In August 2007, the General Office of the State Council issued a notice, promoting the energy saving electricity dispatch policy, which provides dispatching priority to electricity generated from renewable resources over electricity generated from unrenewable resources. In October 2008,For past years, the SERC approved the trial implementation of the policy of energy saving electricity dispatch in certain pilot provinces. In 2013, the PRC Government continued promoting the policy of energy saving electricity dispatch.  In 2014, the NDRC issued the Guidelines to Strengthen and Improve Operation and Management of Power Generations in angovernment made continuous effort to further improve energy saving, emission reduction and resources allocation.  In 2015, the NDRC and China National Energy Administration jointly issued Guidelines on Improving Electric Power Operations and Deepening Clean Energy Generation confirming a system ensuring the full-priced purchasing of renewable energy, and requests furthering the electric power differentiation system on coal-fired units. In 2016, the NDRC and China National Energy Administration issued three official documents, namely Notice on Issuing the Measures for the Administration of the Guaranteed Buyout of Electricity Generated by Renewable Energy Resources, Directive on the Measures for the Administration of the Guaranteed Buyout of Electricity Generated by Solar and Wind Energy Resources and Provisionary Measures for Priority Dispatch of Renewable Peaking Power Generation Units, to further develop the system ensuring the full-priced purchasing of renewable energy and to encourage renewable energy producers to join the market for peaking power supplies. We cannot assure that such implementation will not result in any decrease in the amount of the power dispatched by any of our power plants.
The power industry reform may affect our business
The PRC Government in 2002 announced and started to implement measures to further reform the power industry, with the ultimate goal of creating a more open and fair power market. As part of the reform, five power generation companies, including Huaneng Group, were created or restructured to take over all the power generation assets originally belonging to the State Power Corporation of China. In addition, two grid companies were created to take over the power transmission and distribution assets originally belonging to the State Power Corporation of China. An independent power supervisory commission, the SERC, was created to regulate the power industry. There might be further reforms, and it is uncertain how these reform measures and any further reforms will be implemented and impact our business.
In December 2012, the PRC Government issued a notice to further reform the coal pricing mechanism, which mandated (1) the termination of all key coal purchase contracts between power generation companies and coal suppliers, and the abolition of national guidance of the railway transportation capacity plan, and (2) the cancellation of the dual-track coal pricing system, effective from January 1, 2013. For a detailed discussion of the reform, see “Item"Item 4 Information on the Company – B. Business overview – Pricing policy”policy". There can be no assurance that such coal pricing reform will not adversely affect our results of operation. In 2013, the PRC Government continued the reform in power industry. In July 2013, China National Energy Administration issued the Notice on Direct Purchases between Power End-users and Power Generation Companies, which officially implemented the direct purchases programs by large end-users.
On March 15, 2015, the Opinions of CPC Central Committee and State Council Regarding Further Deepening Reform of the Electricity Systemwas released, according to which the reform will be focused and directed to orderly liberalize the tariff of the competitive markets other than electricity transmission and distribution, gradually allow investment from private investors in power distribution and selling businesses, consistently open the power generation market other than those for non-profit purpose or under regulation, push for independent and regulated operation of the parties involved in electricity transactions, continue the study of regional power grid construction and the transmission and distribution system suitable for China, further strengthen government regulations for enhanced  power coordination and planning, and further improve safe and efficient operation of electricity and reliable power supply. These reforms will have a profound impact on the business models of power generation enterprises and may intensify the competition which may adversely affect our business.
In November 2015, the NDRC and China Energy Administration issued six official documents regarding electricity system reform, namely Opinions on Deepening Electricity Price Reform, Opinions on Furthering Electricity Market Development, Opinions on Establishing and Institutionalizing Electricity Purchasing Organizations, Opinions on Orderly Open Up Electricity Generation and Consumption, Opinions on Deepening Electricity Sales Reform and Guidelines on Fortifying and Institutionalizing the Management of Coal-fired Power Plants, further confirming the direction of the newest round of reforms of the electricity system.
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                In 2016, the PRC Government implemented various measures to further reform the power industry on many fronts, including (i) seeking public comments on the proposed amendment to the electric power law of the People's Republic of China, (ii) implementing structural reform pilot programs in nineteen provinces; (iii) establishing national electricity exchanges in Beijing and Guangzhou, (iii) setting up independent third party credit rating system for market players, (iv) promulgating rules governing the price and method of direct power purchase/competitive bidding programs as well as the market entrance and exit mechanism, and (v) furthering reform on the pricing mechanism for power transmission and distribution prices. These reform actions will have profound impact on the operations of power generation companies and may intensify competition, which may negatively impact our company.
We are effectively controlled by Huaneng Group and HIPDC, whose interests may differ from those of our other shareholders
Huaneng Group, directly or indirectly holds 14.87%13.83% of our total outstanding shares, and HIPDC directly holds 35.14%33.33% of our total outstanding shares. As Huaneng Group is HIPDC’sHIPDC's parent company, they may exert effective control over us acting in concert. Their interests may sometimes conflict with those of our other minority shareholders. There is no assurance that Huaneng Group and HIPDC will always vote their shares, or direct the directors nominated by them to act in a way that will benefit our other minority shareholders.
Disruption in coal supply and its transportation as well as increase in coal price may adversely affect the normal operation of our power plants
A substantial majority of our power plants are fueled by coal. Prior to 2013, we obtainedThe coal supply for our power plants is arranged through a combination of purchases pursuant to the key contracts and purchases in the open market. Starting from 2013, the NDRC no longer issues inter-provincial guidance of the railway transportation capacity plan and all key coal purchase contracts between power generation companies and coal suppliers were terminated. The coal price will be determined based on free negotiation between power companies, and coal suppliers, and the amount of coal supply will be determined based on free negotiation between power companies and railway authorities, which increases the uncertainty of theauthorities. Thus, any material disruption in coal supply and the coal price andits transportation may adversely affect our operations. To date, we have not experienced shutdowns or reduced electricity generation caused by inadequate coal supply or transportation services, but there can be no assurance that, in the event of national coal supply shortfalls, our operations will not be adversely affected.

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services.
In addition, our results of operations are sensitive to the fluctuation of coal price. In 2014,For the past few years, the Chinese coal market was showing a surplus in production, resulting in a significantly decreased coal price. However, the policies of reducing overcapacity of the Chinese coal producers implemented in early 2016 led to a supply shortage with surging coal prices experienced significant decrease due to the supply over demand for coal as a result of excessive production capacities, soft economic growth in China, increasingly strict policies on environment protection, and the increased volume of electricity generated through hydropower and the use of ultra-high-voltage grid.  After a marked drop during the first half of 2014, coal prices rose slightly during the second half of the year following implementation of a series of policies by the government to improve the financial conditions of coal producers.  For example, during 2014, the Bohai-Rim Steam Coal Price Index (“BSPI”) decreased from RMB631/ton in the beginning to RMB528/ton at the end of June, and further dropped  to RMB478/ton at the end of August, before rising to RMB525/ton at the end of December.  By strengthening our cooperation with key domesticChinese coal mines, and increasing the volume of coal purchased through annual contract arrangements and imported coal, we have been able to partially offset the impact of price fluctuation of domestic coals, and our standard unit coal price decreased by more than RMB 50/ton in 2014. However, theremarket. There is no assurance that this increase in coal prices will not increasecontinue in the future, and if the price increase does increase,continue, there is no assurance that we will be able to adjust our power tariff to pass on the increase in the coal price to our customers.in time. Although the government has established a coal-electricity price linkage mechanism to allow power generation companies to increase their power tariffs to cope with the increase in the coal price, the implementation of the mechanism involves significant uncertainties. For a detailed discussion of the coal-electricity price linkage mechanism, see “Item"Item 4 Information on the Company – B. Business overview – Pricing policy”policy".
Power plant development, acquisition and construction are a complex and time-consuming process, the delay of which may negatively affect the implementation of our growth strategy
We develop, construct, manage and operate large power plants. Our success depends upon our ability to secure all required PRC Government approvals, power sales and dispatch agreements, construction contracts, fuel supply and transportation and electricity transmission arrangements. Delay or failure to secure any of these could increase cost or delay or prevent commercial operation of the affected power plant. Although each of our power plants in operation and the power plants under construction received all required PRC Government approvals in a timely fashion, no assurances can be given that all the future projects will receive approvals in a timely fashion or at all. In addition, due to national policies and related regulations promoting environment-friendly energy and the restrictions on coal fired projects, the approval requirements and procedures for thermalcoal fired power plant are becoming increasingly stringent, which may negatively affect the approval process of our new projects and therefore negatively affect the implementation of our growth strategy.
this kind.
We have generally acted as, and intend to continue to act as, the general contractor for the construction of our power plants. As with any major infrastructure construction effort, the construction of a power plant involves many risks, including shortages of equipment, material and labor, labor disturbances, accidents, inclement weather, unforeseen engineering, environmental, geological, delays and other problems and unanticipated cost increases, any of which could give rise to delays or cost overruns. Construction delays may result in loss of revenues. Failure to
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complete construction according to specifications may result in liabilities, decrease power plant efficiency, increase operating costs and reduce earnings.  Although the construction of each of our power plants was completed on or ahead of schedule and within its budget, no assurance can be given that construction of future projects will be completed on schedule or within budget.
In addition, from time to time, we may acquire existing power plants from HIPDC, Huaneng Group or other parties. The timing and the likelihood of the consummation of any such acquisitions will depend, among other things, on our ability to obtain financing and relevant PRC Government approvals and to negotiate relevant agreements for terms acceptable to us.
Substantial capital is required for investing in or acquiring new power plants and failure to obtain capital on reasonable commercial terms will increase our finance cost and cause delay in our expansion plans
An important component of our growth strategy is to develop new power plants and acquire operating power plants and related development rights from HIPDC, Huaneng Group or other companies on commercially reasonable terms. Our ability to arrange financing and the cost of such financing depend on numerous factors, including general economic and capital market conditions, credit availability from banks or other lenders, investor confidence in us and the continued success of our power plants. Although we have not been materially affected by inflation in the past, there is no assurance that we would not be affected in the future. In 20142015, the PBOC maintained the prudencerepeatedly cut down money market rate and continuity of itsreserve ratio to stabilize China's money supply. The PBOC continued to implement a prudent monetary policies bypolicy, with moderate and timely adjustments within 2016, which helped the focus towards generally consistent and structurally improvedCompany to manage its financing costs. We expect that that the prudent monetary policy implementations. The consecutively lowered lending interest rates in November 2014 and February 2015 means that China’s monetary policies will be liberalized and it is expected by the market that money supply will be more abundant than that in 2013. The domestic capital market is generally balanced and liberalization of interest rates is expected to accelerate.continue. The interest bearing debts of the Company are mostly denominated in RMB. The interest rates applicable to existing RMB loan contracts will be adjusted from time to timeRenminbi, changes in accordance with the adjustment of benchmark lending interest ratesrate published by the PBOC andwill have a direct impact on the Company's cost of debt. In the Singaporean capital market, the SOR interest rate will continue to rise as a result of increase in the interest rates applicable to new RMBfor U.S. dollar denominated loan contractsas well as depreciation of Singapore dollar, which will be determined based onlikely increase the benchmark lending interest rates published by the PBOC.financing costs of Tuas Power. The change of the benchmark lending interest rates published by the PBOC will have direct impact on the borrowing costs of the Company. As a result, we may not be able to carry out our expansion plans due to the failure to obtain financing or increased financing costs. Furthermore, although we have historically been able to obtain financing on terms acceptable to us, there can be no assurance that financing for future power plant developments and acquisitions will be available on terms acceptable to us or, in the event of an equity offering, that such offering will not result in substantial dilution to existing shareholders.
Operation of power plants involves many risks and we may not have enough insurance to cover the economic losses if any of our power plants’plants' ordinary operation is interrupted
The operation of power plants involves many risks and hazards, including breakdown, failure or substandard performance of equipment, improper installation or operation of equipment, labor disturbances, natural disasters, environmental hazards and industrial accidents. The occurrence of material operational problems, including but not limited to the above events, may adversely affect the profitability of a power plant.

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Our power plants in the PRC currently maintain insurance coverage that is typical in the electric power industry in the PRC and in amounts that we believe to be adequate. Such insurance, however, may not provide adequate coverage in certain circumstances. In particular, in accordance with industry practice in the PRC, our power plants in the PRC do not generally maintain business interruption insurance, or any third party liability insurance other than that included in construction all-risks insurance or erection all-risks insurance to cover claims in respect of bodily injury or property or environment damage arising from accidents on our property or relating to our operation. Although each of our power plants has a good record of safe operation, there is no assurance that the afore-mentioned accidents will not occur in the future.
If the PRC Government adopts new and stricter environmental laws and additional capital expenditure is required for complying with such laws, the operation of our power plants may be adversely affected and we may be required to make more investment in compliance with these environmental laws
Most of our power plants, being coal-fired power plants, discharge pollutants into the environment. We are subject to central and local government environmental protection laws and regulations, which currently impose
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base-level discharge fees for various polluting substances and graduated schedules of fees for the discharge of waste substances. The amounts of discharge fees are determined by the local environmental protection authority based on the periodic inspection of the type and volume of pollution discharges. In addition, such environmental protection laws and regulations also set up the goal for the overall control on the discharge volume of key polluting substances. These laws and regulations impose fines for violations of laws, regulations or decrees and provide for the possible closure by the central government or local government of any power plant which fails to comply with orders requiring it to cease or cure certain activities causing environmental damage. In 2007,Also, the PRC Government issued additional policies on discharge of polluting substances and on desulphurization for coal-fired generating units. Certain provinces have raised the rates of waste disposal fees since 2008. In 2012, the new and more stringent standards on discharge of polluting substances by thermal power plants promulgated by the PRC Government in 2011 came into effect, which also require newly commencedrequires thermal power plants to equip all units with desulphurization and denitrification facilities, and all existing thermal power plants to be modified with denitrification facilities equipped on all units by the end of 2015. In September 2013, the State Council issued the Air Pollution Prevention Action Plan, which sets higher anti­pollutionanti-dust standards. Local governments promulgated relevant local regulations, many of which set even more stringent standards.  As of July 1, 2014, the new pollutants emission standards for coal-fired generating plants and dust emission standards in key regions came into effect. In September 2014, the NDRC, the Ministry of Environmental Protection and the China National Energy Administration jointly issued the 2014-2020 Action Plans for Energy Saving, Emission Reduction and Renovation of Coal-fired Generation Units,, imposing stricter requirements for efficient and clean development of coal-fired generating plants. Such stringent standards, together with the increase in the discharge fees, will result in the increases in the environmental protection expenditure and operating costs of power plants and may have adverse impact on our operating results.
We attach great importance to the environmental related matters of our existing power plants and our power plants under construction. We have implemented a system that is designed to control pollution caused by our power plants, including the establishment of an environmental protection office at each power plant, adoption of relevant control and evaluation procedures and the installation of certain pollution control equipment. We are also upgrading the super low emission facilities on our coal fired units, which may be completed by the end of year 2017. We believe our environmental protection systems and facilities for the power plants are adequate for us to comply with applicable central government and local government environmental protection laws and regulations. However, the PRC Government may impose new, stricter laws and regulations on environmental protection, which may adversely affect our operations.
The PRC is a party to the Framework Convention on Climate Change (“("Climate Change Convention”Convention"), which is intended to limit or capture emissions of “greenhouse”"greenhouse" gases, such as carbon dioxide. Ceilings on such emissions could limit the production of electricity from fossil fuels, particularly coal, or increase the costs of such production. At present, ceilings on the emissions of “greenhouse”"greenhouse" gases have not been assigned to developing countries under the Climate Change Convention. Therefore, the Climate Change Convention would not have a major effect on us in the short term because the PRC as a developing country is not obligated to reduce its emissions of “greenhouse”"greenhouse" gases at present, and the PRC Government has not adopted relevant control standards and policies. If the PRC were to agree to such ceilings, or otherwise reduce its reliance on coal-fired power plants, our business prospects could be adversely affected.  In addition, pilot carbon emission trading programs have been conducted in certain regions and are expected to be gradually implemented throughout China.  This may also adversely affect our business and financial prospects in the future.
Our business benefits from certain PRC Government tax incentives. Expiration of, or changes to, the incentives could adversely affect our operating results
Prior to January 1, 2008, according to the relevant income tax law, domestic enterprises were, in general, subject to statutory income tax of 33% (30% enterprise income tax and 3% local income tax). If these enterprises are located in certain specified locations or cities, or are specifically approved by State Administration of Taxation, a lower tax rate would be applied. Effective from January 1, 1999, in accordance with the practice notes on the PRC income tax laws applicable to foreign invested enterprises investing in energy and transportation infrastructure businesses, a reduced enterprise income tax rate of 15% (after the approval of State Administration of Taxation) was applicable across the country. We applied this rule to all of our wholly owned operating power plants after obtaining the approval of State Administration of Taxation. In addition, certain power plants were exempted from enterprise income tax for two years starting from the first profit-making year, after offsetting all tax losses carried forward from the previous years (at most of five years), followed by a 50% reduction of the applicable tax rate for the next three years. The statutory income tax was assessed individually based on each of their results of operations.

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On March 16, 2007, the Enterprise Income Tax Law of PRC, or the New Enterprise Income Tax Law, was enacted, and became effective on January 1, 2008.2008 and was amended on February 24,2017. The New Enterprise Income Tax Law imposes a uniform income tax rate of 25% for domestic enterprises and foreign invested enterprises. Therefore, our power plants subject to a 33% income tax rate prior to January 1, 2008 are subject to a lower tax rate of 25% starting on January 1, 2008. With regard to our power plants entitled to a reduced enterprise
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income tax rate of 15% prior to January 1, 2008, their effective tax rate gradually increased to 25% within a five-year transition period commencing on January 1, 2008. Accordingly, the effective tax rate of our wholly owned power plants has increased over time. In addition, although our power plants entitled to tax exemption and reduction under the income tax laws and regulations that are effective prior to the New Enterprise Income Tax Law will continue to enjoy such preferential treatments until the expiration of the same, newly established power plants will not be able to benefit from such tax incentives, unless they can satisfy specific qualifications, if any, provided by then effective laws and regulations on preferential tax treatment.
The increase of applicable income tax rate and elimination of the preferential tax treatment with regard to certain of our power plants may adversely affect our financial condition and results of operations. Moreover, our historical operating results may not be indicative of our operating results for future periods as a result of the expiration of the tax benefits currently available to us.
In addition, according to the New Enterprise Income Tax Law and its implementation rules, any dividends derived from the distributable profits accumulated from January 1, 2008 and paid to the shareholders who are non-resident enterprises in the PRC will be subject to the PRC withholding tax at the rate of 10%. The withholding tax will be exempted if such dividends are derived from the distributable profits accumulated before January 1, 2008. Under a notice issued by the State Administration of Taxation of the PRC on November 6, 2008, we are required to withhold PRC income tax at the rate of 10% on annual dividends paid for 2008 and later years payable to our H Share investors who are non-resident enterprises.
Fluctuations in exchange rates could have an adverse effect on our results of operations and your investment
As a power producer operating mainly in China, we collect most of our revenues in Renminbi and have to convert Renminbi into foreign currencies to (i) repay some of our borrowings which are denominated in foreign currencies, (ii) purchase foreign made equipment and parts for repairs and maintenance, (iii) purchase fuel from overseas suppliers, and (iv) pay out dividend to our overseas shareholders.
The value of the Renminbi against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in China’sChina's political and economic conditions. The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the PBOC. On July 21, 2005, the PRC government introduced a floating exchange rate system to allow the value of Renminbi to fluctuate within a regulated band based on market supply and demand and by reference to a basket of foreign currencies. Renminbi appreciated by more than 20% against the U.S. dollar between July 2005 and July 2008. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. On June 19, 2010, the PBOC decided to further promote the reform of the Renminbi exchange rate formation mechanism, and improve the flexibility of Renminbi exchange rate. Since June 2010,The Company and its subsidiaries (both domestic and overseas) have debts denominated in foreign currencies, fluctuations in the exchange rates of Renminbi has regained steady appreciation againstand Singapore dollar into foreign currencies creates exchange risk for the U.S. dollar,Company. With the internationalization process and RMB joining the SDR, RMB exchange rate may continue to fluctuate in the future. In August 2015, the PBOC perfected its midpoint rate determination mechanism, which was reversed by slightled to a 2% depreciation of Renminbi against the U.S. dollar at the turn to and early 2014. On March 15, 2014, the PBOC announced to further widen Remninbi’s daily trading band against U.S. dollar from 1% to 2% on either side of the daily reference rate, allowing for greater fluctuations of the exchange rate.dollar. However, it is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future. There remains significant international pressure on the PRC Government to further liberalize its currency policy, which could result in further fluctuations in the value of the Renminbi against the U.S. dollar. However, there is no assurance that there will not be a devaluation of Renminbi in the future. If there is such devaluation, our debt servicing cost will increase and the return to our overseas investors may decrease.
Our revenues from SinoSing Power Pte. Ltd. (“("SinoSing Power”Power") and its subsidiaries are collected in Singapore dollars. However, commencing from 2008, the operating results of SinoSing Power and its subsidiaries were consolidated into our financial statements, which use Renminbi as the presentation currency. As a result, we are exposed to foreign exchange fluctuations between Renminbi and the Singapore dollar. Appreciation of Renminbi against the Singapore dollar may cause a foreign exchange loss upon conversion of SinoSing Power and its subsidiaries’ operating results denominated in Singapore dollars into Renminbi, which may have adverse impact on our operation results.
results and foreign translation difference.
The audit report included in this annual report is prepared by an auditor who is not inspected by the Public Company Accounting Oversight Board and, as such, you are deprived of the benefits of such inspection
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Auditors of companies that are registered with the U.S. Securities and Exchange Commission and traded publicly in the United States, including our independent registered public accounting firm, must be registered with the U.S. Public Company Accounting Oversight Board (United States) (the “PCAOB”"PCAOB") and are required by the laws of the United States to undergo regular inspections by the PCAOB to assess their compliance with the laws of the United States and professional standards. Because we have substantial operations within the People’sPeople's Republic of China and the PCAOB is currently unable to conduct inspections of the work of our auditors as it relates to those operations without the approval of the Chinese authorities, our auditor’sauditor's work related to our operations in China is not currently inspected by the PCAOB. In May 2013, PCAOB announced that it had entered into a Memorandum of Understanding on Enforcement Cooperation with the China Securities Regulatory Commission (“CSRC”("CSRC") and the PRC Ministry of Finance, which establishes a cooperative framework between the parties for the production and exchange of audit documents relevant to investigations undertaken by PCAOB, the CSRC or the PRC Ministry of Finance in the United States and the PRC, respectively. PCAOB continues to be in discussions with the CSRC and the PRC Ministry of Finance to permit joint inspections in the PRC of audit firms that are registered with PCAOB and audit Chinese companies that trade on U.S. exchanges.

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This lack of PCAOB inspections of audit work performed in China prevents the PCAOB from regularly evaluating audit work of any auditors that was performed in China including that performed by our auditors. As a result, investors may be deprived of the full benefits of PCAOB inspections. Investors may lose confidence in our reported financial information and procedures and the quality of our financial statements.
The Chinese member firm of the KPMG network, of which ourOur independent registered public accounting firm is also a member, may be temporarily suspended from practicing before the SEC. If a delay in completion of our audit process occurs as a result, we could be unable to timely file certain reports with the SEC, which may lead to the delisting of our stock
On January 22, 2014, Judge Cameron Elliot, an SEC administrative law judge, issued an initial decision suspending the Chinese member firms of the “Big Four”"Big Four" accounting firms, including KPMG network,our independent registered public accounting firm, from, among other things, practicing before the SEC for six months.  In February 2014, the initial decision was appealed. While under appeal and in February 2015, the Chinese member firms of “Big Four”"Big Four" accounting firms reached a settlement with the SEC. As part of the settlement, each of the Chinese member firms of “Big Four”"Big Four" accounting firms agreed to settlement terms that include a censure; undertakings to make a payment to the SEC; procedures and undertakings as to future requests for documents by the US SEC; and possible additional proceedings and remedies should those undertakings not be adhered to.
Our independent registered public accounting firm currently relies on the Chinese member firm of the KPMG network for assistance in completing the audit work associated with our operations in China.  If the settlement terms are not adhered to, Chinese member firms of “Big Four”"Big Four" accounting firms may be suspended from practicing before the SEC which could in turn delay the timely filing of our financial statements with the SEC.  In addition, it could be difficult for us to timely identify and engage another qualified independent auditor. A delinquency in our filings with the SEC may result in NYSE initiating delisting procedures, which could adversely harm our reputation and have other material adverse effects on our overall growth and prospect.
Forward-looking information may prove inaccurate
This document contains certain forward-looking statements and information relating to us that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. When used in this document, the words “anticipate,” “believe,” “estimate,” “expect,” “going forward”"anticipate," "believe," "estimate," "expect," "going forward" and similar expressions, as they relate to us or our management, are intended to identify forward-looking statement. Such statements reflect the current views of our management with respect to future events and are subject to certain risks, uncertainties and assumptions, including the risk factors described in this document. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. We do not intend to update these forward-looking statements.
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There can be no assurance that we will not be passive foreign investment company, or PFIC, for United States federal income tax purposes for any taxable year, which could subject United States investors in the ADSs or our H shares to significant adverse United States income tax consequences.
We will be a “passive"passive foreign investment company,”" or “PFIC,”"PFIC," if, in the case of any particular taxable year, either (a) 75% or more of our gross income for such year consists of certain types of “passive”"passive" income or (b) 50% or more of the average quarterly value of our assets (as determined on the basis of fair market value) during such year produce or are held for the production of passive income (the “asset test”"asset test"). For United States federal income tax purposes, and based upon our current and expected income and assets, we do not presently expect to bebelieve that we were classified as a PFIC for the current taxable year orended December 31, 2016, and do not anticipate becoming one in the foreseeable future.
While we do not expect to become a PFIC, because the value of our assets for purposes of the asset test may be determined by reference to the market price of the ADSs, fluctuations in the market price of the ADSs may cause us to become a PFIC for the current or subsequent taxable years. The determination of whether we will be or become a PFIC will also depend, in part, on the composition of our income and assets. Under circumstances where we determine not to deploy significant amounts of cash for active purposes, our risk of being a PFIC may substantially increase. Because there are uncertainties in the application of the relevant rules and PFIC status is a factual determination made annually after the close of each taxable year, there can be no assurance that we will not be a PFIC for the current taxable year or any future taxable year.
If we are a PFIC in any taxable year, a U.S. holder (as defined in “Item"Item 10. Additional Information—E. Taxation—United States federal income tax considerations”considerations") may incur significantly increased United States income tax on gain recognized on the sale or other disposition of the ADSs or H shares and on the receipt of distributions on the ADSs or H shares to the extent such gain or distribution is treated as an “excess distribution”"excess distribution" under the United States federal income tax rules and such holders may be subject to burdensome reporting requirements. Further, if we are a PFIC for any year during which a U.S. holder holds the ADSs or our H shares, we generally will continue to be treated as a PFIC for all succeeding years during which such U.S. holder holds the ADSs or our H shares. For more information see “Item"Item 10. Additional Information—E. Taxation—Passive Foreign Investment Company Considerations.”"

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Risks relating to doing business in the PRC
China’sChina's economic, political and social conditions as well as government policies could significantly affect our business
As of December 31, 2014,2016, the majority of our business, assets and operations are located in China. The economy of China differs from the economies of most developed countries in many respects, including government involvement, control of foreign exchange, and allocation of resources.
The economy of China has been transitioning from a planned economy to a more market-oriented economy. After multiple years of strenuous and sustained economic restructuring reforms, China has become a leading player in the global economy and a major contributing force to the economic revival and growth worldwide.
The PRC Government has implemented economic reform measures emphasizing utilization of market forces in the development of the economy of China and a higher level of autonomy for the private sector. Some of these measures will benefit the overall economy of China, but may have a negative effect on us for a short term. For example, our operating results and financial condition may be adversely affected by changes in taxation, changes in power tariff for our power plants, changes in the usage and costs of State-controlled transportation services, and changes in State policies affecting the power industry.
Interpretation of PRC laws and regulations involves significant uncertainties
The PRC legal system is based on written statutes and their interpretation by the Supreme People’sPeople's Court. Prior court decisions may be cited for reference but have limited value as precedents.
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We are subject to certain PRC regulations governing PRC companies that are listed overseas. These regulations contain certain provisions that are required to be included in the articles of association of these PRC companies and are intended to regulate the internal affairs of these companies. TheAs the PRC regulatory agenciesregulations are intensifying their efforts to protectconstantly evolving with the goal of better protecting shareholder's interests, we may face greater uncertainties in the interpretation of shareholders. WePRC laws and regulations. Furthermore, the PRC regulations for protection of shareholder's rights are listeddifferent from those applicable in three exchanges. Given that each exchange and jurisdiction has different rules for shareholder protection,the United States and/or exchanges where we are listed.  Therefore we made it is our policy to adopt the strictest standards of theseany listing rules.rules potentially applicable to us. Some of these standards are incorporated in our articles of association and bylaws with the view to providing most protection for the interests of our shareholders.
Risks relating to our operations in Singapore
Our operations in Singapore are subject to a number of risks, including, among others, risks relating to electricity pricing, dispatching, fuel supply, project development, capital expenditure, environmental regulations, government policies, and Singapore’sSingapore's economic, political and social conditions. Any of these risks could materially and adversely affect our business, prospects, financial condition and results of operations.
Fluctuation in demand and intensified competition may adversely affect Tuas Power’sPower's business and results of operations.
Our operations in Singapore depend on market demand and are subject to competition. Overall power system demand grew by more than 3%2.5% in 20142016 over 2013.2015. The future growth is highly dependent on sustained recovery in the Singapore and global economies. The liberalization of Singapore’sSingapore's power market and the further deregulation of its power industry have resulted in more intense competition among the power generation companies in Singapore. Tuas Power Group, or Tuas Power, one of our wholly owned business units, is one of the three largest power generation companies in Singapore. If Tuas Power is unable to compete successfully against other power generation companies in Singapore, its business, prospects, financial condition and results of operations may be adversely affected. Existing incumbents, including Tuas Power Generation Pte Ltd (“TPG”), and new entrants have embarked on repowering and new-build capacities
An electricity futures market was also established in line with2015 through an incentive scheme by the planned development of Singapore’s first Liquefied Natural Gas (“LNG”) Regasification Terminal. At the end of 2014, 2,000MW of new gas-fired generating capacity using LNG were competingauthority to market makers (MM) in the Singaporefutures market. Another 400MW of new capacity is under construction and isThis has attracted independent retailers which are expected to come online beforeexert some price competition in the end ofretail market. A Demand Response (DR) scheme is currently being established which could potentially introduce further price competition in the next year.
Following the introduction of LNG intowholesale generation market in Singapore. Furthermore, the Singapore Market andgovernment recently announced plans to raise the additional generating capacities facilitatedadoption of solar energy to 350 MWp by the Energy Market Authortiy’s (the “EMA”) LNG Vesting Scheme, the electricity market has turned from a gas-constrained market2020, compared to 60 MWp in the last few years to one that is oversupplied. This is expected to have negative impact on prices until the excess capacity is absorbed by increase in demand.
2016.
TP Utilities Pte Ltd (“TPU”("TPU"), an entity in Tuas Power Group, sells utilities, such as steam, industrial water and demineralized water to industrial customers for their direct consumption. The timing for those potential investorscustomers to site their premises is uncertain due to economic situations. The demand of the utilities by these customers may vary as well. Therefore, it is necessary for TPUDespite Tuas Power's efforts to understand the customers’ demand and timing to arrive at a demand projection. Thedevelop its facilities will be developed in stages and/or in modules to provide sufficient capacity matching the demand. Customers are requireddemand, and require customers to pay minimum capacity payment charges to mitigate the demand risk.

risk, its business and results of operations may be adversely affected by fluctuation in demand.
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Regulatory changes of the vesting regime in Singapore could expose Tuas Power to electricity price volatility and adversely affect its business and results of operations
Tuas Power derives its revenue mainly from sale of electricity to the National Electricity Market of Singapore (the “NEMS”"NEMS") through a bidding process and vesting contracts under which a significant portion of power sales is predetermined by the EMA.Energy Market Authority ("EMA"). The vesting contract regime in Singapore is targeted at mitigation of market power in the wholesale electricity spot market. The regime achieves this objective by assigning a quantity of vesting contracts to generatinggeneration companies, thereby limiting their incentives to exercise whatever level of market power they may possess. Vesting contracts are a form of bilateral contract imposed/vested on the major power generation companies in Singapore. Vesting contract price is set by the EMA, which is Singapore’sSingapore's power market regulator. Vesting contract price is set at the long run marginal cost of the most efficient base-loaded technology plant employed in Singapore and is reviewed every two years. On a quarterly basis, the EMA allows for vesting contract quantity to be adjusted to account for changes in demand (due to seasonality) and the vesting contract price to be adjusted to account for inflation and changes in fuel prices. Such a mechanism helps
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protect the profit margins of the power generatinggeneration companies in the Singapore market, such as Tuas Power, to a large degree. The quantity of eachvesting contract allocated to the power generation company’s capacity reserved for vesting contractscompany depends on the proportion of such power generation company’scompany's capacity to the total licensed or planned generation capacity at the commencement of the vesting contracts regime. A portion of the volume under the Vesting Contract Scheme has also been allocated to the LNG Vesting Scheme - an incentive scheme where players who have committed to an initial tranche of LNG for Singapore are allocated electricity sale contracts.  The volume allocated to the generation companies under the LNG vesting scheme is fixed for a period of 10 years until 2023. By the end of 2015, the vesting contract has been rolled back to 25% of system demand (inclusive of the LNG Vesting Scheme). Following an appeal by some of the players in the NEMS system. The contract quantity and price are recalculated every three months. Formarket, the period from January 1, 2014 to December 31, 2014, power sold through vesting contracts represented approximately 42% of Tuas Power’s total power sold. As an important governmental policy in Singapore’s power market, vesting contracts may continue as long as the EMA considers that high market concentration persists and that power generation companies may potentially exercise their market power. The biennial review carried out in 2014 saw a phased reduction of vesting contract levels over a two-year period from an immediate level has been maintained at 25% for 2016. Following EMA's review of 30% forthe Vesting Contract Regime in 2016, it is determined that the vesting contract level will be maintained at 25% until the end of the first half 2015of 2018 and 25% forit will be reduced to LNG vesting level by the second half 2015 before lowingof  2019.  The vesting contract regime will be phased out by 2023 when the LNG vesting contract expires, which could lead to 20% for 2016.
volatility in electricity prices and adversely affect our business, financial condition and results of operation..
The fuel cost of Tuas Power is exposed to volatility of international fuel price and foreign currency risk
The fuel for Tuas Power consists of natural gas, coal, biomass, fuel oil and diesel oil. Since the procurement price of natural gas is closely linked to oil price and the procurement price of coal and biomass is linked to a coal index, the fuel cost of Tuas Power is exposed to the volatility of international oil and coal prices. The prices of oil and coal, after dipping to low level in the first half of 2016, have moved up in the second half of 2016. In addition, the commitments for the purchase of fuel are denominated in U.S. dollars, which further exposes Tuas Power to foreign currency risk. Any increase in fuel price and/or appreciation of the U.S. dollar against the Singapore dollar will translate into an increase in fuel cost for Tuas Power. Part of this increase can be passed through electricity sale contracts and utilities sale contracts, while fuel and foreign exchange hedging strategies done appropriately will mitigate the impact of such increase. No assurance can be given that such increase will not adversely affect results of its operation. Tuas Power is highly dependent upon the import of gas via pipelines from Indonesia. The rapid and sharp fall in the price of oil over the course of 2015 has resulted in wide variation in the price for its various sources of gas supply within the same month. Any disruption of such supply would impact the normal operation of Tuas Power significantly. This risk has been mitigated through Tuas Power’sPower's contract to buy LNG for its incremental needs, although there is no assurance that, in the event of fuel supply shortfall, Tuas Power’sPower's operations will not be adversely affected.
ITEM 4   Information on the Company
ITEM 4Information on the Company
A.A.           History and development of the Company
Our legal and commercial name is Huaneng Power International, Inc. Our head office is at Huaneng Building, 6 Fuxingmennei Street, Xicheng District, Beijing, People’sPeople's Republic of China and our telephone number is (8610) 63226999. We were established in June 1994 as a company limited by shares organized under the laws of the People’sPeople's Republic of China.
On April 19, 2006, we carried out the reform to convert all non-tradable domestic shares to tradable domestic shares. According to the reform plan, Huaneng Group and HIPDC offered three shares to each holder of A Shares for every ten shares held by them. The total number of shares offered in connection with the reform was 150,000,000 shares. As a result, all non-tradable domestic shares were permitted to be listed on the stock exchange for trading with certain selling restrictions. The period of selling restrictions is sixty months for the non-tradable shares held by Huaneng Group and HIPDC, and one year for most non-tradable shares held by others starting from April 19, 2006. All such selling restrictions were released by April 19, 2011. The reform did not affect the rights of shareholders of our overseas listed foreign shares.
In 2010, we increased our share capital through non-public issuances of new shares, including A shares and H shares. With the approval from shareholders and relevant PRC governmental authorities, we were authorized to issue (i) not exceeding 1,500 million new A shares by way of placement to not more than 10 designated investors including Huaneng Group, which would subscribe for no more than 500 million new A shares, and (ii) no more than 500 million new H Shares to China Hua Neng Hong Kong Company Limited (“Hua Neng HK”). On December 23, 2010, we completed the non-public issuance of 1,500 million new A shares (ordinary shares with a par value of RMB1 per share) to 10 designated investors, including Huaneng Group, at the issuance price of RMB5.57 per share. The shares subscribed by Huaneng Group are subject to a lock-up period of 36 months, and the shares subscribed by other designated investors are subject to a lock-up period of 12 months. On December 28, 2010, we completed the placement of 500 million H shares (ordinary shares with a par value of RMB1 per share) to Hua Neng HK at the subscription price of HK$4.73 per share. On November 13, 2014, we issued a total of 365 million H Shares to nine placees, at an issue price of HK$8.60 per share. After these non-public issuances, we have a total share capital of approximately 14.42 billion shares.

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On December 31, 2009, we entered into an equity transfer contract with Shandong Electric Power Corporation (“Shandong Power”) and Shandong Luneng Development Group Company Limited (“Luneng Development”) to acquire various interests and preliminary stage projects in nine entities. As of December 31, 2011, the operating results of all the nine entities were consolidated into ours.
On January 4, 2011, we entered into an equity transfer agreement relating to the acquisition of Fushun Suzihe Hydropower Development Company Limited (“Fushun Suzihe Hydropower”) with its existing shareholders, pursuant to which we agreed to acquire the entire equity interest in Fushun Suzihe Hydropower with an aggregate consideration of RMB50 million. Fushun Suzihe Hydropower has a planned hydropower capacity of 37.5 MW (3 x 12.5 MW). In September 2012, unit I of Suzihe Hydropower passed trial run.
On June 29, 2011, we entered into an equity transfer agreement relating to the transfer of Huaneng Jilin Biological Power Generation Limited Company (“Jilin Biological”) with Huaneng Jilin Power Generation Co., Ltd. and Huaneng Group, pursuant to which we agreed to transfer the entire equity interest in Jilin Biological with an aggregate consideration of approximately RMB106 million.
On August 9, 2011, we entered into a capital increase agreement with China Huaneng Finance Limited Liability Company (“Huaneng Finance”), pursuant to which we subscribed for its own part of the newly increased registered capital of Huaneng Finance for a consideration of RMB600 million. The equity interest held by us in Huaneng Finance remains unchanged, representing 20% of the equity interests of Huaneng Finance.
On October 25, 2011, we entered into a capital increase agreement with Huaneng Group, GreenGen Co., Ltd. (“GreenGen”) and Tianjin Jinneng Investment Company (“Tianjin Jinneng”), pursuant to which our Company made a capital contribution of RMB264 million to the registered capital of Huaneng (Tianjin) Coal Gasification Power Generation Co., Ltd., which was jointly funded by GreenGen and Tianjin Jinneng immediately prior to the capital increase. We hold 35.97% of the equity interests in Coal Gasification Co after the completion of the capital increase.
On January 11, 2013, we entered into an equity transfer agreement with Huaneng Group, pursuant to which we agreed to acquire a 50% interest in China Huaneng Group Fuel Co., Ltd. (“Fuel Company”) from Huaneng Group for a consideration of approximately RMB108 million. On the same day, we entered into a capital increase agreement with Huaneng Group and the Fuel Company, pursuant to which we agreed to make a capital injection of RMB1.4 billion into the Fuel Company after the completion of the acquisition.
As resolved at the 2010 annual general meeting held on May 17, 2011, our Company has been given a mandate to apply to the competent authority for a quota of the non-public issuance of debt financing instruments with a principal amount not exceeding RMB10 billion within 12 months from the date of obtaining an approval at the general meeting (to be issued within such period on a rolling basis). On September 8, 2011, we received the approval from the competent authority. On November 7, 2011, we completed the issuance of the first tranche of non-public issuance of debt financing instruments in the amount of RMB5 billion with a maturity period of 5 years, a unit face value of RMB100 and an interest rate of 5.74%. On January 5, 2012, we completed the issuance of the second tranche of the non-public issuance of debt financing instruments in the amount of RMB5 billion with a maturity period of 3 years, a unit face value of RMB100 and an interest rate of 5.24%. On June 4, 2013, we completed the issuance of the third tranche of non-public issuance of debt financing instruments in the amount of RMB5 billion with a maturity period of 3 years and an interest rate of 4.82%.
As resolved at the 2010 Annual General Meeting on May 17, 2011, our Company has been given a mandate to issue one or multiple tranches of financing instruments of RMB-denominated debt instruments of a principal amount up to RMB5 billion in or outside PRC within 12 months from the date of approval at the general meeting. On April 19, 2012, we received an approval regarding the issuance of RMB-denominated debt instruments in Hong Kong in the sum of RMB5 billion issued by the NDRC, approving our Company to issue the RMB-denominated debt instruments in Hong Kong in an aggregate amount of up to RMB5 billion, with an effective period of one year from the date of approval. On January 30, 2013, our Company and the managers entered into a subscription agreement in relation to the proposed issuance of RMB1.5 billion bonds due 2016 with an interest rate of 3.85% (“RMB Bonds”). The RMB Bonds are listed and traded on the Hong Kong Stock Exchange effective from February 5, 2013.
As resolved at the 2012 annual general meeting on June 19, 2013, our Company has been given a mandate to issue one or more tranches of super short-term notes within the PRC in a principal amount not exceeding RMB30 billion on a rolling basis within 24 months of approval by the general shareholders’ meeting. on August 22, September 10 and November 3, 2014, we issued super short-term notes in three installments at principal amount of RMB2 billion, RMB3 billion and RMB3 billion and with nominal annual interest rate of 4.63%, 4.63% and 4.00%, respectively.  All these series of notes were denominated in RMB, issued at par value, and would mature in 270 days from issuance.
As resolved at the 2012 annual general meeting on June 19, 2013, our Company has been given a mandate to issue one or more tranches of short-term notes in the PRC in a principal amount not exceeding RMB 15 billion on a rolling basis within 24 months of approval by the general shareholders’ meeting.  On April 25 and November 14, 2014, we issued unsecured short-term bonds in two installments each at principal amount of RMB5 billion with nominal annual interest rate of 4.90% and 3.98%, respectively.  Each of the bonds was denominated in RMB, issued at par value, and would mature in 365 days from issuance.
As resolved at the 2012 annual general meeting held on June 19, 2013, our Company has been given a mandate to issue non-public debt financing instruments in the PRC in a principal amount of not exceeding RMB10 billion within 24 months from the date of obtaining an approval at the general meeting.  On July 11, 2014, we issued  mid-term notes at principal amount of RMB4 billion with nominal annual interest rate of 5.30%.  The notes were denominated in RMB, issued at par value, and would mature in five years from issuance.
As resolved at the second meeting of the 8th session of the board of the Company on October 13, 2014 and adopted at the third extraordinary general meeting of the Company, we entered into the Huaneng Group Interests Transfer Agreement with Huaneng Group, and the HIPDC Interests Transfer Agreement and the Chaohu Power Interests Transfer Agreement with HIPDC. Pursuant to these transfer agreements, we will acquireacquired from Huaneng Group 91.8% interests of Hainan Power, 75% interests of Wuhan Power,

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53.45% interests of Suzhou Thermal Power, 97% interests of Dalongtan Hydropower and 100% interests of Hualiangting Hydropower at a total price of RMB7,337,647,400,RMB7.338 billion, and acquire from HIPDC 60% interests of Chaohu Power, 100% interests of Ruijin Power, 100% interests of Anyuan Power, 100% interests of Jingmen Thermal Power and 100% interest of Yingcheng Thermal Power Interests at a total price of RMB1,938,178,900.  InRMB1.938 billion. The total consideration is RMB9.647 billion after adjustment of the profits generated from the date of valuation to the acquisition date in accordance with the equity transfer agreements. The transaction was completed in January 2015.
On November 20, 2015, we haveissued a total of 780 million new H shares by way of placement at the issuance price of HKD7.32 per share. The aggregate consideration received for these shares was approximately HKD5.71 billion. After this issuance, our total share capital increased from 14,420,383,440 shares to 15,200,383,440 shares, including an increase in our total share capital for H shares from 3,920,383,440 shares to 4,700,383,440 shares.
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As resolved at the 2014 annual general meeting on June 25, 2015, our Company has been given a mandate to issue one or more tranches of short-term debentures in the PRC in a principal amount not exceeding RMB 15 billion on a rolling basis within 24 months of approval by the general shareholders' meeting.  On August 10 and October 20, 2016, we issued short-term debentures in two tranches each at principal amount of RMB3 billion with nominal annual interest rate of 2.50% and 2.60%, respectively.  Each of the debentures was denominated in RMB, issued at par value, and would mature in 365 days from issuance.
On October 14, 2016, the Company signed the Agreement for the Transfer of Equity Interests in Certain Companies with Huaneng Group (the "Transfer Agreement"). Pursuant to the Transfer Agreement, the Company shall accept the transfer of (i) 80% equity interest of Huaneng Shandong Power Limited; (ii) 100% equity interest of Huaneng Jilin Power Limited; (iii) 100% equity interest of Huaneng Heilongjiang Power Limited; and (iv) 90% equity interest of Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. from Huaneng Group for the consideration of RMB15,113,825,800. This transaction was considered and approved at the 21st meeting of the Eighth Session of the Board held on October 14, 2016, and was considered and approved at the 2016 Second Extraordinary General Meeting held on November 30, 2016. According to the terms of the agreements, the Company has paid 50% of the total priceconsideration for such transaction to Huaneng Group and HIPDC pursuant to these transfer agreements. We are still in the process of reviewing the financial information of these newly acquired entities as of the acquisition date.on January 9, 2017.
See “Item"Item 5 Operating and Financial ReviewReviews and Prospects – Liquidity and Cash Resources”Resources" for a description of our principal capital expenditures since the beginning of the last three financial years.
B.B.           Business overview
We are one of the China’sChina's largest independent power producers. As of March 31, 2015,2017, we had controlling generating capacity of 78,693MW,101,270 MW, and a total generating capacity of 70,736MW89,486 MW on an equity basis.
Operations in China
We are engaged in developing, constructing, operating and managing power plants throughout China. Our domestic power plants are located in 2124 provinces, provincial-level municipalities and autonomous regions. We also have a wholly owned power company in Singapore.
In 2014,2016, the Company overcame difficulties posed by the decline in the growth rate of power generation, actively responded to the new trendsmarket environments arising from the development of the social demand for power, implemented and changes inprogressed the power market,relevant work, generally maintained a stable and safe production and made new progress in various aspects, including power generation, energy saving, emission reduction, project development and capital management. Meanwhile,efforts on cost control. The operating result of the Company managedreached a record high while the Company continued to fulfill the duties of providing sufficient, reliable and green energypower to the society.
In 2014,2016, new generating units with a total installed capacity of 3,6291,227 MW were put into operation. In 2014,2016, our total domestic power generation from all operating power plants on a consolidated basis amounted to 294.388313.690 billion kWh, representing a 7.27% decrease of 2.13% from 2013.2015. The annual average utilization hours of our domestic generating units reached 4,5723,921 hours. Our fuel cost per unit of power sold by domestic power plants decreased by 7.96%1.76% from the previous year to RMB201.19RMB 170.62 per MWh.
We believe our significant capability in the development and construction of power projects, as exemplified in the completion of our projects under construction ahead of schedule, and our experience gained in the successful acquisitions of power assets in recent years will enable us to take full advantage of the opportunities presented in China’sChina's power market.
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With respect to the acquisition or development of any project, we will consider, among other factors, changes in power market conditions, and adhere to prudent commercial principles in the evaluation of the feasibility of the project. In addition to business development strategies, we will continue to work onenhance our profit enhancement through relentlesslyprofitability by further strengthening our cost control, especially in respect of fuel costs and construction costs, so as to hedge against fluctuations in fuel price and increase competitiveness in the power market.
Operations in Singapore
Tuas Power, one of our wholly owned business units, operates in Singapore and is engaged in the business of generation, wholesale and retail of power and other relating utilities. Tuas Power is comprised of Tuas Power Ltd (“TPL”("TPL"), the investment holding company, and seven subsidiaries. Among those subsidiaries, TPGTuas Power Generation Pte. Ltd. ("TPG") is the electricity generation company that owns 100% of Tuas Power Supply Pte Ltd (“TPS”("TPS"), which is the retail arm of TPG. Separately, TPU, a wholly owned subsidiary of TPL is engaged in the business of production and supply of utilities to industrial customers at Tembusu, Jurong Island in Singapore, as well as the generation of electricity dispatched to the electricity wholesale market. The commercial operation of Phase IIA of the coal-biomass fired cogeneration plant commenced operations in June 2014, which provided a timely response to the increased steam demand from customers with electricity output dispatched to the electricity wholesale market. We have consolidated Tuas Power’sPower's results of operations since March 2008. The total assets and revenue of Singapore operations represented approximately 11%8.98% and 11%7.70%, respectively, of our consolidated total assets and revenue as of and for the year ended December 31, 2014.2016. In 2014,2016, the power generated by Tuas Power in Singapore accounted for 21.80%21.5% of the total power generated in Singapore, representing an increase of 1.17 percentage points from 2013.
slightly lower than 2015.
Development of power plants
The process of identifying potential sites for power plants, obtaining government approvals, completing construction and commencing commercial operations is usually lengthy. However, because of our significant experience in developing and constructing power plants, we have been able to identify promising power plant projects in China and to obtain all required PRC Government approvals in a timely manner.
Opportunity identification and feasibility study
We initially identify an area in which additional electric power is needed by determining its existing installed capacity and projected demand for electric power. The initial assessment of a proposed power plant involves a preliminary feasibility study. The feasibility study examines the proposed power plant’splant's land use requirements, access to a power grid, fuel supply arrangements,

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availability of water, local requirements for permits and licenses and the ability of potential customers to afford the proposed power tariff. To determine projected demand, factors such as economic growth, population growth and industrial expansion are used. To gauge the expected supply of electricity, the capacities of existing plants and plants under construction or development are studied.
Approval process
Prior to July 2004, any project proposal and supporting documents for new power plants had to first be submitted to the NDRC for approval and then be submitted to the State Council. In July 2004, the State Council of the PRC reformed the fixed asset investment regulatory system in China. Under the new system, new projects in the electric power industry that do not use government funds will no longer be subject to the examination and approval procedure. Instead, they will only be subject to a confirmation and registration process. Coal-fired projects will be subject to confirmation by the NDRC. Wind power projects with installed capacity of 50 MW or above shall be subject to confirmation and registration with the relevant department of the central government, while wind power projects with installed capacity lower than 50 MW shall be subject to confirmation and registration with relevant local government departments. Wind power projects confirmed by local government departments at provincial level shall also be filed with the NDRC and China National Energy Administration.
In November 2014, pursuant to the Catalogue of Investment Projects Approved by the Government (2014 Version) issued by the State Council, administrative approval power for certain activities in the energy sector has been delegated to a lower level. The administrative approval power for thermal power stations has been delegated to the provincial level (with coal-fired thermal power station projects being subject to national-level administrative
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approval based on state-promulgated constructions plans limited by total volume), the administrative approval power for heat power stations has been delegated to the local level (with condensing steam heat power station projects being subject to provincial-level administrative approval based on state-promulgated constructions plans limited by total volume), and the administrative approval power for wind power plants delegated to the local level subject to state-promulgated constructions plans limited by total volume as well as the scope as set out in the annual developmental guides. The Interim Measures for Supervision and Administration of Photovoltaic Power Station Projects issued by China National Energy Administration in 2013 requires that photovoltaic power station projects be regulated by on a filing-based system by the provincial-level energy supervisory departments in accordance with regulations related to investment projects issued by the State Council. The same administrative approval standard was again re-affirmed in December 2016 pursuant to the Catalogue of Investment Projects Approved by the Government (2016 Version) issued by the State Council.
Joint venture power projects are subject to additional governmental approvals. Approval by Ministry of Commerce is also required when foreign investment is involved.
In January 2007, the Office of theFrom 2014, China National Energy Leading GroupAdministration has placed stringent control on coal-fired projects within the Beijing-Tianjin-Hebei region, the Yangtze River Delta Region and the NDRC,Pearl River Delta Region. All new coal –fired generating projects, other than those involving co-generation, were prohibited from being approved. Multi coal-fired generating units with a total capacity of more than 300 MWh may be reconstructed into large capacity units based on the principles of equivalent replacement for coal but reduction in replacement pollutant emission.
From 2016, to counter the issue of overcapacity in the coal-fire power sector, China National Energy Administration strengthened the approval of the State Council, jointly issued the opinions to accelerate shutdownscoal-fire projects nationwide, a number of smallnew coal-fired generating units. Power generation companies are encouraged to close small coal-fired generating unitsprojects, other than those involving co-generation, were cancelled, postponed or terminated. Considering the increasingly limited availability of prime locations and replace themdecreasing subsidies, China National Energy Administration also suspended approval of new wind power plants and photovoltaic power station projects in provinces with newly built large units,wind curtailment rate over 20% and their new projects may be granted priority in the confirmation and registration process on the basis of their proactive implementation of the opinions.
solar curtailment rate over 5%.
Permits and contracts
In developing a new power plant, we, and third partieslike other players in the industry, are required to obtain permits before commencement of the project. Such permits include operating licenses and similar approvals related to plant site, land use, construction, and environment. To encourage the cooperation and support of the local governments of the localities of the power plants, it has been and will be our policy to seek investment in such power plants by the relevant local governments.
Power plant construction
We have generally acted as the general contractor for the construction of our power plants. Equipment procurement and installation, site preparation and civil works are subcontracted to domestic and foreign subcontractors through a competitive bidding process. All of our power plants were completed on or ahead of schedule, enabling certain units to enter service and begin generating income earlier than the estimated in-service date.
Import duties
China’s general import-tariff level has been declining since China acceded to the WTO in November 2001. China’s average import-tariff rate was reduced annually from 15.3% in 2001 to 9.9% in 2005 and 2006. Starting from January 1, 2007, the average import-tariff rate was further reduced to 9.8%. In general, China’s accession to WTO continues to bring its import-tariff to a level consistent with the average level of all other WTO members. Under the relevant PRC laws and regulations, foreign invested enterprises (“FIE”), will be entitled to import duty exemption in respect of self-use imported equipment and raw materials for investment projects that fall into the encouraged category under the Catalogue for the Guidance of Foreign Investment Industries (the “Catalogue”). Pursuant to the current Catalogue, effective on January 30, 2012, construction and operation of power stations using integrated gasification combined cycle, circulating fluidized bed with a generating capacity of 300MW or above, pressurized fluidized bed combustor with a generating capacity of 100MW or above and other clean combustion technologies belong to the category of encouraged projects. Therefore, all of our construction projects that meet the conditions for encouraged projects under the current catalogue are eligible for import-duty exemption for imported generating units.
Pursuant to the Interim Rules to Promote Structural Adjustment of Industries issued in December 2005 and Guidance Catalogue for Structural Adjustment of Industries effective on June 1, 2011, our power plants construction projects with independent legal person status belonging to an encouraged category of investments are eligible for exemption from import duty and related value-added tax with regard to the imported equipments used in such projects, subject to the approval of the relevant government authorities.
Plant start-up and operation
We have historically operated and intend to continue to operate our power plants. Our power plants have established management structures based on modern management techniques. We select the superintendent for a new power plant from the senior management of our operating plants early in the construction phase of the new plant, invest in the training of operational personnel, adopt management techniques that improve efficiency and structure our plant bonus program to reward efficient and cost-effective operation of the plant in order to ensure the safety, stability and high availability factor of each power plant. Our senior management meets several times a year with the superintendents of the power plants as a group, fostering a team approach to operations, and conducts annual plant performance reviews with the appropriate superintendent, during which opportunities to enhance the power plant’splant's performance and profitability are evaluated.

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After a coal-fired generating unit is constructed, the contractor tests its installation and systems. Following such tests, the contractor puts the unit through a continuous 168-hour trial run at full load. After successfully passing the continuous 168-hour test and obtaining approval from the local governments, the unit may commence its commercial operation. Trial run of a wind power project consists of two phases: (i) trial run of single wind power generating unit and (ii) trial run of the entire wind power project as a whole. After successfully passing the trial run, the wind power project may commence its commercial operation.
Development of Power Plants in Singapore
The Singapore electricity industry had traditionally been vertically integrated and owned by the government. Since 1995, steps have been taken to liberalize the power industry, including the incorporation of the Public Utilities Board (“PUB”("PUB") in 1995, establishment of Singapore Electricity Pool (“SEP”("SEP") in 1998, formation of Energy Market Authority (“EMA”("EMA") in 2001, and the evolvement of the SEP into the New Electricity Market of Singapore (“NEMS”("NEMS") in 2003. The EMA is a statutory body responsible for the economic, technical and competition regulation of the gas and electricity industry in Singapore. In carrying out its functions as the regulator of the power sector, EMA is empowered under the Electricity Act to issue and enforce licenses, codes of practices and performance standards. Energy Market Company Pte Ltd. (the “EMC”"EMC") is the market company licensed to operate the wholesale market, or the NEMS.
In Singapore, a company is required to hold a generation license issued by the EMA if it generates electricity by means of one or more generating units with capacity of 10 MW or above. If connected to the power grid, the generating unit(s) must be registered with the EMC and will have to compete with other power generation companies to secure dispatch in the NEMS.
To ensure adequate electricity supply in Singapore, the EMA targets a minimum reserve margin (the excess of generating capacity over peak electricity demand) of 30% based on a loss of load probability (a measure of the probability that a system demand will exceed capacity during a given period, often expressed as the estimated number of days over a year) of three days per year. The 30% required reserve margin is to cater for scheduled maintenance as well as forced outages of generating units in the system. If the reserve margin falls below the required 30% due to demand growth and/or plant retirements, it would be an indication that new generation investments in generation units are needed to maintain system security.
The EMA intends to keep the increase and decrease in generating capacity commercially driven as far as practicable. As a precaution against the risk of insufficient generating capacity in the system, to maintain system security, the EMA has planned to put in place a capacity assurance scheme to incentivize new generation planting in case new generating capacity that is required to maintain system security is not forthcoming from the market. EMA has not provided any update to the proposed scheme but given the current oversupply of capacity, it is not anticipated that the scheme will be put into place anytime soon.
By most measures of market power, the Singapore market is highly concentrated, as the three largest power generation companies account for approximately 70%60% of total power capacity. ItSince December 2002, EMA has imposed a licensed capacity cap (in MW) on these three power generation companies to prevent them from increasing their market dominance/power. Following a review of the vesting contract regime in 2016, EMA imposed a 25% cap on capacity market share to all generation licensees to prevent structural increases in market concentration/power. With regard to the three largest power generation companies, the cap imposed by EMA is therefore unlikely that the EMA will allowhigher of either the 25% capacity market share cap or their respective licensed capacity cap, until the expiry of their respective generation license. This provides an option for the three largest power generation companies to increase their licensedgeneration capacities beyond their current generation license up to 25% capacity and these generation companies will have to rely on the optimization of their existing capacity within license capacities to improve efficiency and forestall any new entrant.
market share cap.
New entrants as well as existing competitors have invested in new generating capacity or repowering of existing plants to take advantage of the LNG Vesting Scheme. This will impact the market negatively as these new capacities compete for market share as well as to avoid the gas take-or-pay penalties arising out of an oversupplied market.
EMA issued a Singapore Electricity Market Outlook (SEMO) 2016, which provides a long term outlook of the energy market, such as the projected supply and demand conditions to facilitate power generation investment
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decisions. Based on the data provided by EMA, there will be approximately 300MW of new investments in 2017 and 700MW of plant retirement in 2019.
We are in the process of developing the Tembusu Multi-Utilities Complex (the “TMUC”"TMUC") in Singapore. The TMUC is expected to consist of a co­generationco-generation plant, a desalination plant and a wastewater treatment facility, with a total installed capacity of 165 MW. The complex will be developed in multiple phases in order to meet customers’customers' demand. Phase 1 consists of 1 x 450 t/h coal-biomass co-fired circulated fluidized bed boiler, 2 x 200 t/h diesel/natural gas fired boilers and 1 x 101MW steam turbine-generator, and other components of the plant. Phase 2A consists of 1 x 450 t/h coal-biomass co-fired circulated fluidized bed boiler, 1 x 200 t/h diesel/natural gas fired boiler and 1 x 32MW steam turbine-generator, and other components of plant. Phase 1 and Phase IIA commenced commercial operations in March 2013 and June 2014 respectively. The first train of 62.5 m³/h wastewater treatment facility commenced commercial operation in September 2015.  TPL owns 100% equity interest in this project.
Pricing policy
Pricing policy in China
Prior to April 2001, the on-grid tariffs for our planned output were designed to enable us to recover all operating and debt servicing costs and to earn a fixed rate of return. Since April 2001, however, the PRC Government has gradually implemented a new on-grid tariff-setting mechanism based on the operating terms of power plants as well as the average costs of comparable power plants.
On July 3, 2003, the State Council approved the tariff reform plan and made it clear that the long-term objective of the reform is to establish a standardized and transparent tariff-setting mechanism.
Pursuant to the NDRC circular issued in June 2004, on-grid tariffs for newly built power generating units commencing operation from June 2004 should be set on the basis of the average cost of comparable units adding tax and reasonable return in the regional grid. It provides challenges and incentives for power generation companies to control costs for building new generating units.

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On March 28, 2005, the NDRC issued the Interim Measures on Regulation of On-grid Tariff, the Interim Measures on Regulation of Transmission and Distribution Tariff, and the Interim Measures on Regulation of End-user Tariff, or collectively the “Interim Measures”"Interim Measures", to provide guidance for the reform of tariff-setting mechanism in the transition period. Under the Interim Measures, tariff is classified into on-grid tariff, transmission and distribution tariff and end-user tariff. Transmission and distribution tariff will be instituted by the government. End-user tariff will be based on on-grid tariff and transmission and distribution tariff. The government is responsible for regulating and supervising power tariffs based on the principles of promoting efficiency, encouraging investment and improving affordability.
In December 2004, the NDRC proposed and the State Council approved the establishment of a linkage mechanism between coal and power prices, pursuant to which, the NDRC may adjust power tariffs if the change of the average coal price reaches 5% within a period of six months compared with the preceding same period. The change in a period, if less than 5%, will be carried forward to the future periods until the accumulated amounts reach 5%. With a goal to encourage power generation companies to reduce cost and improve efficiency, only around 70% of coal price increases will be allowed to pass to end-users through an increase of power tariffs, and power generation companies will bear the remaining 30%. In May 2005, the NDRC activated the coal-electricity price linkage mechanism for the first time to increase on-grid tariffs and end-user tariffs in the northeastern region, central region, eastern region, northwestern region and southern region. We accordingly increased the on-grid tariffs of our power plants in the northeastern region, central region, eastern region and northwestern region on May 1, 2005 and in the southern region on July 15, 2005. In June 2006, the coal-electricity price linkage mechanism was reactivated by the NDRC to increase on-grid tariffs and end-user tariffs in the northeastern region, central region, eastern region, northwestern region and southern region. We accordingly increased the on-grid tariffs of most of our power plants in the same regions on June 30, 2006.
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In May 2007, NDRC and the State Environment Protection Administration jointly promulgated Interim Administrative Measures on Electricity Price of Coal-fired Generating Units installed with Desulphurization Facilities and the Operations of Such Facilities, which provided that a premium for desulphurization may be charged on the price of the electricity generated by generating units installed with desulphurization facilities on and from the date on which such desulphurization facilities are tested and accepted by a relevant environment protection regulator. Such pricing policy is also applicable to the old generating units which are installed with desulphurization facilities. The new measures are more stringent on the regulation of the coal-fired power plants with desulphurization facilities, setting forth the categories under which the price including a desulphurization premium will be offset or otherwise penalized based on the ratio of utilization of the relevant desulphurization facilities on an annual basis. As of December 31, 2013, all of our existing coal-fired generating units have installed and operated the desulphurization facilities and enjoyed the desulphurization premium.
In June 2008, NDRC issued Notice of Raising the Power Tariff, pursuant to which, the power tariff in provincial grids nationwide was increased by an average of RMB0.025 per kWh. In August 2008, NDRC issued Notice of Raising the On-grid Tariffs of the Thermal Power Plants, pursuant to which, the on-grid tariff of thermal power plants, including plants fueled by coal, oil, gas and co-generation, was increased by an average of RMB0.02 per kWh.
On February 25, 2009, NDRC, SERC and China National Energy Administration jointly promulgated the Notice regarding Cleaning up the Concessional Tariff Scheme, pursuant to which, (i) the concessional tariff scheme at the local level is banned, and (ii) certain measures, such as direct purchase by large end-users and adopting peak and off-peak power pricing policy, will be carried out to reduce enterprises’enterprises' power cost. In addition, the notice emphasizes the supervision and inspection over the setting of power tariffs. On October 11, 2009, in order to promote a fair market condition and the optimization of electric power resources, NDRC, SERC and China National Energy Administration jointly promulgated the Circular on Regulating the Administration of Electric Power Transaction Tariffto regulate the tariff-setting mechanism for the on-grid tariff, transmission and distribution tariff and end-user tariff and clean up the local preferential power tariffs provided to high energy consumption companies. Pursuant to a notice issued by NDRC, with effect from November 20, 2009, certain adjustments on the on-grids tariffs have been made in various regions of China in order to resolve the inconsistencies in tariffs, rationalize the tariff structure and promote the development of renewable energy.
In 2010, the PRC Government started to implement the direct power purchase policy. As of December 31, 2013, some of the provinces where we operate power plants are approved by the NDRC to implement the direct power purchase by large power end-users. In addition, during 2010 SERC issued several circulars and notices to regulate the trans-provincial and interregional transaction of power and/or power generation right, in which the power purchase price shall be freely determined by negotiation through market pricing mechanism. In December 2012, SERC issued another circular to further regulate the trans-provincial and interregional transaction of power and/or power generation right.
In May 2011, NDRC issued a notice, increasing the on-grid tariffs of thermal power plants to partially compensate the increased costs incurred by thermal power plants resulting from increases in coal prices. Different adjustments on tariffs were made in different provinces. In November 2011, PRC Government made further nationwide adjustments on power tariffs, including an average of RMB0.026 per kWh increase in on-grid tariff for thermal power plants. In December 2012, NDRC issued a notice, which provided that, from January 1, 2013, NDRC would provide a RMB0.008 per kWh denitrification premium for all coal-fired generating units equipped with denitrification facilities that are inspected and accepted by authorized national or provincial authority.

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In March 2012, the PRC Government issued a notice, which mandated the confirmation method for the power generation projects, subsidy standards and fund appropriation standards relating to the application for subsidy for renewable energy power price of power generation projects. In December 2012, the PRC Government issued the Notice on the Guidelines of Enhancing the Reform of Marketization of Coal Used for Power Generationto further reform the coal pricing mechanism. Effective January 1, 2013, all key coal purchase contracts between power generation companies and coal suppliers were terminated and contracts are directly negotiated between power generation companies and coal suppliers without the interference of local governments. According to the notice, the NDRC will no longer issue inter-provincial guidance on the railway transportation capacity plan. In addition, the dual-track coal pricing system, which included the government regulated mandatory annual contract pricing and spot
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market prices for the remaining coal production output of each coal supplier, was abolished due to the narrowing gap between the government regulated coal contract price and the spot market price. Pursuant to the notice, future coal contract prices will be determined by the market and freely negotiated between power generation companies and coal suppliers. Furthermore, the coal-electricity price linkage mechanism will continue to be implemented and constantly improved. Once the coal price fluctuates for more than 5% on an annual basis, on-grid tariff would be adjusted accordingly. The notice also mandates that power generation companies absorb 10% of the coal price fluctuations as compared to 30% prior to 2013. Given the narrow gap between the key contract coal price and the spot market price, the overall on-grid tariff was not adjusted.
In September 2013, NDRC issued the Notice on the Adjustment of Power Tariff for Power Generation Companies and Related Matters, pursuant to which the on-grid tariffs for coal-fired generating units were lowered, by a national average of RMB0.013 per kWh, and the on-grid tariff for gas turbine power plants were slightly increased. The Notice also increased the power tariff for power-generating companies that are equipped with denitrification facilities and dust-removal facilities.
In March 2014, the NDRC and the Ministry of Environmental Protection jointly issued the Measures to Monitor the Operation of Environmental Protection Tariffs and Facilities Regarding Coal-fired Generating Units, under which the standard on-grid electricity tariff incorporating environmental protection element will no longer be applicable to coal-fired generating units unless the coal-fired power generating enterprise has completed renovation for environmental protection acceptable after testing.  In August 2014, the NDRC issue the Notice to Further Resolve Conflicts Regarding Environmental Protection Tariff, under which the standard on-grid tariff for coal-fired power generating units is lowered with the view to resolve the environmental protection tariffs conflicts such as denitrification and dedusting of coal-fired power generation enterprises, and setting the tariff subsidy for denitrification and dedusting at RMB0.01/kWh and RMB0.002/kWh, respectively.  In December 2014, the NDRC issued the Notice Regarding Adjusting Standard On-grid Tariff for Onshore Wind Powers, under which the standard on-grid tariff for each of Class I, Class II and Class III wind powers is lowered by RMB0.02, and the tariff for Class IV wind power remain unchanged at RMB0.61/kWh.  In December 2014, the NDRC issued the Notice Regarding Certain issues of On-grid Tariff of Natural Gas Powers, defining the principles to formulate and modify the tariff of electricity generated by natural gas, aiming to regulate on-grid tariff administration and used facilitate healthy and orderly growth of natural gas power generating sector in China.
In termsApril 2015, the NDRC issued the Notice on Reducing On-grid Tariff for Coal-fired Power and Commercial and Industrial Power Tariff in order to release the pressure on tariffs for natural gas and for companies that utilize denitration or dedusting techniques or with extremely low emissions, to lower commercial and industrial power tariff, and to moderately lower on-grid tariff for coal-fired power, the power tariff in provincial grids nationwide was decreased by an average of RMB0.02 per kWh.
In December 2015, the NDRC issued the Notice on Issues of Perfecting the Mechanism of Coal-electricity Price Linkage, confirming the annual cycle of the mechanism, the NDRC's leading role in implementing the mechanism, and provinces and cities' executor role in implementing the mechanism. The coal-electricity prices with which the mechanism of coal-electricity price linkage is in line are indexed to the national thermal coal price index. The benchmark coal price is the provincial average price in China's thermal coal price index of 2014. And the benchmark tariff is in principle the on-grid tariff in line with the benchmark coal price. The tariff adjustment may be triggered after the annual review based on the calculations according to the formula given by Policy of the Mechanism of Coal-electricity Price Linkage. Also in December 2015, the NDRC issued the Notice on Reducing On-grid Tariff for Coal-fired Power and General Commercial and Industrial Power Tariff, which ordered a decrease of national on-grid tariffs for coal power and general commercial and industrial power tariff by an average of RMB0.03 per kWh, based on the relevant regulations prescribed in the mechanism of coal-electricity price linkage. In the same month of 2015, the NDRC also issued the Notice on Improving On-grid Tariff Policy for Wind Power and Photovoltaic Power, which established a policy that the benchmark on-grid tariffs for wind power and photovoltaic power decrease in line with the development of these two types of power plants. To further indicate the investment expectation, the Notice confirmed the benchmark on-grid tariffs for wind power of 2016 and 2018. The 2016 benchmark on-grid tariff for photovoltaic power has been confirmed, yet that of 2017 and onward will be confirmed at a later stage.
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On January 1, 2016, after the annual review based on the calculations prescribed in the mechanism of coal-electricity price linkage, the NDRC adjusted on-grid tariff for coal-fired power and commercial and industrial power tariff.  National on-grid tariffs for coal power decreased by an average of RMB0.03 per kWh, based on the relevant regulations, RMB0.01 per kWh of which shall be contributed to a specialized corporate restructuring fund with the purpose of supporting placement of personnel laid off during the supply-side reform. The NDRC also increased on-grid tariff for renewable power by RMB0.004 per kWh in order to replenish the renewable energy fund and to support emission reduction efforts of coal-fired power generation enterprises and to resolve conflicts regarding environmental protection tariffs.
In December  2016, in order to implement General Office of the State Council’s Energy Development Strategic Action Plan (2014-2020) about achieving equal on-grid tariff for wind and solar power with coal power to encourage the orderly development of wind and solar power by properly guiding investments in these areas, the NDRC issued the Announcement on the Adjustment of Standard On-Grid Tariff for Solar and Onshore Wind Power (NDRC Price [2016]No. 2729). From January 1, 2017, standard on-grid tariffs for Class I, Class II and Class III solar powers was adjusted to RMB0.65 per kWh, RMB0.75 per kWh and RMB0.85 per kWh, respectively, which is RMB0.15 per kWh, RMB0.13 per kWh and RMB0.13 per kWh lower than corresponding tariff in 2016. Such standard on-grid tariff will be adjusted annually. 2018 standard on-grid tariff for Class I, Class II and Class III onshore wind power decreased by RMB0.04 per kWh, RMB0.02 per kWh, RMB0.01 per kWh, respectively.  Yunnan Province has been recategorized as Class II from Class IV, which meant the standard on-grid tariff for wind power projects, pursuant to the applicable policies and regulations, the PRC is categorized into four wind-resource zones, and the onshore wind power projects approved after August 1, 2009 andgenerated in the same zone are subject to the same standard on-grid tariff applicable to that zone. In addition, the power grid companies are generally required to purchase all of the electricity generatedYunnan province will decrease by wind power generating units.an additional RMB0.12 per kWh.
Pricing Policy in Singapore
Pricing Policy of Electricity in Singapore
All licensed power plants in Singapore sell their plant output into the NEMS under a half-hourly competitive bidding process, during which a clearing price is determined based on the projected system demand. All successful bids/power plants that are cleared in each half hour will be dispatched automatically by control signals from the Power System Operator, a division of the EMA, and in turn will receive the cleared price as determined earlier. The cleared price paid to the power plants is the nodal price at their point of injection, and the Market Clearing Engine, the computer software that creates dispatch schedules and determines market clearing prices, automatically produces a different price at each node on the network.
A Demand Response scheme is being introduced where demand could be curtailed in response to high prices in return for a share of the total savings arising out of lower prices as a result of demand being reduced.
As there is no certainty in the price or the dispatch levels for any power plants, operators of power plants may enter into short- or long-term financial arrangements with other counterparties or their own subsidiary company involved in the electricity retail market (to end consumers of electricity) to secure stability in their revenue stream and manage the commercial risks associated with operations in a competitive market.
In addition, the major power generation companies, including Tuas Power, are obliged to hold vesting contracts. Vesting contracts are a form of bilateral contract imposed/vested on the generation companies who had been licensed by the EMA before the establishment of NEMS. Market Support Services Licensee is the counterparty to all of the vesting contracts, and the vesting contracts are settled between the parties through the EMC’sEMC's settlement system. The quantity of eachvesting contract allocated to the power generation company’s capacity covered by vesting contractscompany depends on the proportion of itssuch power generation company's capacity to the total licensed or planned generation capacity inat the NEMS system.commencement of the vesting contract regime. Vesting contract price is set by the EMA at the long-run marginal cost and is adjusted by the EMA on a periodic basis for changes in the long-run marginal cost and on a quarterly basis for inflation and changes in fuel prices.prices and electricity demand. Such mechanism helps protect the profit margins of the power generation companies in the Singapore market to a large degree. The contract quantity and
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price are currently recalculated every three

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months. The existing Vesting Contract SchemeThere has been reduceda rollback on the vesting contract level from 40% in 2015 to an intermediateimmediate level of 30%25%. Following the review of system demandvesting contract regime by EMA in 2016, it is determined that the vesting contract level will maintain at 25% until the end of first half of 20152018 and 25% inreduce to LNG vesting level by second half of 2015, before lowering to 20% in 2016 (from 40% in 2014).2019. The vesting contract regime will be phased out by 2023 when the LNG vesting contracts expires. This translates into increased exposure to a more volatile pool price. The authority is further considering introducinghas introduced a demand response scheme to be implemented in 2015 where loads can choose to participate in peak load shaving and share in part of the consumer surplus. Ansurplus and an Electricity Futures Market is also being contemplated. Going forward, we intendwhich attracts independent retailers to enter the Singapore market. We continue to monitor closely and evaluate the impact of such marketmarkets on our business.
The gross pool design adopted in NEMS means all quantity sold by retailers to contestable consumers (currently defined as customers with average monthly usage more than of 4,000kWh)42,000kWh) has to be in turn purchased from the pool. The retailers pay for their electricity purchases at the Uniform Singapore Energy Price, which is a weighted average of nodal prices and is determined on a half-hourly basis in the NEMS.
Pricing Policy of Utilities in Singapore
Utilities supply to industrial customers is based on long-term contracts. The pricing of utilities has both fixed and variable components.
Power sales
Each of our power plants has entered into a written agreement with the local grid companies for the sales of its planned power output. Generally, the agreement has a fixed term of one year and provides that the annual utilization hours of the power plant will be determined with reference to the average annual utilization hours of the similar generating units connected to the same grid.
In 2003, SERC and the State Administration of Commerce and Industry jointly promulgated a model contract form (the “Model"Model Contract Form”Form") for use by power grid companies and power generation companies in connection with electricity sale and purchase transactions. The Model Contract Form contains provisions on the parties’parties' rights and obligations, amount of electricity subject to purchase, payment method and liabilities for breach of contract, etc. We believe that the publication of the Model Contract Form has facilitated the negotiation and execution of electricity purchase contracts between power grid companies and power generation companies in a fair, transparent and efficient manner. In 2014,2015, a majority of the agreements entered into between our power plants and the local grid companies were based on the Model Contract Form.
From 2008, with the purpose of improving energy usage efficiency, the government implemented an optimized-dispatch electricity policy in some provinces in China, as a result of which, the utilization hours of low energy consumption and low pollution generating units have been improved. We believe that our large generating units with high efficiency and low emission are competitive in the market.
Power sales through competitive bidding are one of the targets of PRC power market reform. The PRC Government started in 1999 to experiment with a program to effect power sales through competitive bidding in some provinces, and has been gradually expanding the program with a view to creating a market-oriented electric power industry. Pursuant to the opinions regarding promotion of electric power system reform in the period of “The Eleventh Five-Year Plan” adopted by the State Council in November 2006, the SERC has sped up the reform to establish an electric power market suitable to China’s circumstances.provinces. Furthermore, the PRC Government started in 2009 to experiment with a program for direct power purchase by large power end-users, and has promulgated relevant rules governing the price and method of direct power purchase transactions as well as the market entrance and exit mechanism. In accordance with the above policies, we are conducting research on the program for direct power purchases by large power end-users. In July 2013, China National Energy Administration issued the Notice on Direct Purchases between Power End-users and Power Generation Companies, which officially implemented the direct purchases programs by large end-users. Among the provinces where we operate our power plants, seven of them, namely Shanxi, Jiangsu, Henan, Hunan, Guangdong, Fujian and Gansu, started the direct purchase program in 2013, and four of them, namely Jiangxi, Yunnan, Hubei and Liaoning, are actively promoting the direct purchase pilot program. programs.
In 2014, the programs were also implemented in Zhejiang and Anhui. In addition to these regions, the direct purchase programs by large end-users were also implemented in Liaoning, Jiangxi, Hubei and Chongqing in 2015 and in the whole nation except Shanghai, Hainan and Tibet in 2016. The national volume of electricity sold in 2016 via the direct purchase programs was approximately 800 billion kWh, which represented a huge increase from the 430 billion kWh sold in 2015. Most of the sale was negotiated between power producers and large end users, with a minority completed through the competitive bidding process.  We participated in all regions with pilot direct purchase programs.
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Establishing regional                In general, establishing liberalized power markets and increasing the use of the bidding method arerepresents the general trend in China’sChina's power market reform, which is conducive to creating a competition environment that is fair, transparent and equitable. Power sales through a bidding process have been tested, to a small degree, in the power market in the Northeastern region and Eastern region. However, as of December 31, 2014, the use of the bidding method in power sales had not been substantively implemented yet.
In 2008, with the purpose of improving energy usage efficiency, the government implemented an optimized-dispatch electricity policy in Henan Province, Sichuan Province, Jiangsu Province, Guangdong Province and Guizhou Province on a pilot basis, as a result of which, the utilization hours of low energy consumption and low pollution generating units have been improved. We believe that our large generating units with high efficiency and low emission in Henan, Jiangsu and Guangdong provinces are competitive in the market.
The following table sets forth the average power tariff (RMB/MWh) of electric power sold by our power plants in China, for each of the five years ended December 31 through 20142016 and the approved power tariff for 2015.2017.

  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Heilongjiang Province
                  
Xinhua Power Plant*  —   —   —   —   —   377.21 
Hegang Power Plant*  —   —   —   —   —   378.70 
Daqing Co-generation  —   —   —   —   —   372.30 
Yichun Co-generation*  —   —   —   —   —   382.30 
Sanjiangkou Wind Power*  —   —   —   —   —   630.00 
Linjiang Jiangsheng Wind Power*  —   —   —   —   —   630.00 
Daqing Heping Aobao Wind Power*  —   —   —   —   —   630.00 
Jilin Province
                        
Jiutai Power Plant*  —   —   —   —   —   371.70 
Changchun Co-generation*  —   —   —   —   —   371.70 
Nongan Biomass*  —   —   —   —   —   750.00 
Linjiang Jubao Hydropower*  —   —   —   —   —   375.70 
Zhenlai Wind Power*  —   —   —   —   —   595.00 
Siping Wind Power*  —   —   —   —   —   610.00 
Tongyu Tuanjie Wind Power*  —   —   —   —   —   580.00 
Liaoning Province
                        
Dalian Power Plant  409.18   407.89   394.50   375.55   346.76   368.50 
Dandong Power Plant  405.73   401.09   393.06   371.45   352.52   368.50 
Yingkou Power Plant  409.35   406.85   399.33   378.32   344.71   368.50 
Yingkou Co-generation  397.59   396.96   399.21   365.04   331.39   368.50 
Wafangdian Wind Power  610.82   632.85   609.68   598.12   603.72   620.00 
Changtu Wind Power  610.00   605.30   602.82   590.93   626.09   620.00 
Suzihe Hydropower  364.25   330.00   330.00   329.96   332.67   330.00 
Dandong Photovoltaic  —   —   —   —   950.00   950.00 
Yingkou Co-generation Photovoltaic  —   —   —   —   950.00   950.00 
Inner Mongolia Autonomous Region
                        
Huade Wind Power  520.00   520.00   520.00   520.00   471.22   520.00 
Hebei Province
                        
Shang’an Power Plant  434.63   431.15   429.39   401.79   358.48   367.57 
 
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  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Kangbao Wind Power  536.72   534.47   538.84   538.14   554.60   540.00 
Kangbao Photovoltaic －  －  －  －  784.95   982.50 
Gansu Province
                        
Pingliang Power Plant  336.12   332.16   322.72   259.51   207.63   297.80 
Jiuquan Wind Power  520.60   520.60   520.60   473.12   367.54   520.60 
Jiuquan II Wind Power  —   —   540.00   497.75   402.36   540 
Yumen Wind Power  —   —   520.60   472.01   390.06   520.60 
Yigang Wind Power  —   —   —   —   447.65   580.00 
Beijing Municipality
                        
Beijing Co-generation  494.00   529.47   514.72   480.70   454.99   462.60 
Beijing Co-generation CCGT  —   468.79   882.33   959.91   687.33   650.00 
Tianjin Municipality
                        
Yangliuqing Co-generation  438.03   483.73   434.28   416.54   370.82   383.80 
Lingang Co-generation CCGT  —   —   —   817.57   726.44   700 
Shanxi Province
                        
Yushe Power Plant  396.56   393.37   391.22   334.87   253.01   331.50 
Zuoquan Power Plant  383.25   389.83   382.01   333.25   252.96   325.5 
Dongshan CCGT  —   —   —   703.80   682.40   670.50 
Shandong Province
                        
Dezhou Power Plant  468.90   464.89   463.36   445.44   389.78   403.51 
Jining Power Plant  459.63   455.46   446.73   429.20   372.57   384.52 
Xindian Power Plant  453.75   453.35   448.55   432.30   381.58   389.60 
Weihai Power Plant  461.89   474.38   461.18   440.45   382.53   398.51 
Rizhao Power Plant Phase II  446.90   446.38   441.59   422.33   372.08   382.90 
Zhanhua Co-generation  450.55   446.56   434.71   424.66   389.33   372.90 
Baiyanghe Power Plant*
  —   —   —   —   —   394.64 
Rizhao Power Plant Phase I*
  —   —   —   —   —   448.50 
Jiaxiang Power Plant*
  —   —   —   —   —   377.90 
Jining Co-generation*
  —   —   —   —   —   385.50 
QufuCo-generation*
  —   —   —   —   —   372.90 
Huangtai Power Plant*
  —   —   —   —   —   382.90 
Yantai Power Plant*
  —   —   —   —   —   405.40 
Linyi Power Plant*
  —   —   —   —   —   384.23 
Jining Yunhe Power Plant*
  —   —   —   —   —   394.50 
  Year Ended December 31, 
  
2010
  
2011
  
2012
  
2013
  
2014
  
2015
 
  
Average
Tariff(1)
  
Average
Tariff(1)
  
Average
Tariff(1)
  
Average
Tariff(1)
  
Average
Tariff(1)
  
Approved
Tariff(1)
 
Liaoning Province                  
Dalian Power Plant  375.44   382.84   409.18   407.89   394.50   402.40 
Dandong Power Plant                                                     376.61   383.08   405.73   401.09   393.06   402.40 
Yingkou Power Plant  387.78   394.82   409.35   406.85   399.33   402.40 
Yingkou Co-generation  386.29   391.92   397.59   396.96   399.21   402.40 
Wafangdian Wind Power  —   610.00   610.82   632.85   609.68   610.00 
Changtu Taiping Wind Power  —   —   610.00   605.30   602.82   610.00 
Suzihe Hydropower  —   —   364.25   330.00   330.00   330.00 
Inner Mongolia Autonomous Region                        
Huade Wind Power   510.00   528.45   520.00   520.00   520.00   510.00 
Hebei Province                        
Shang’an Power Plant  378.59   408.20   434.63   431.15   429.39   — 
Phase I   —   —   —   —   —   426.90 
Phase II  —   —   —   —   —   435.50 
Phase III  —   —   —   —   —   421.40 
Kangbao Wind Powert  —   —   536.72   534.47   538.84   540.00 
Gansu Province                        
Pingliang Power Plant  275.91   306.36   336.12   332.16   322.72   326.90 
Jiuquan Wind Power  —   —   520.60   520.60   520.60   520.60 
Anbei Third Wind Power  —   —   —   —   540.00   540.00 
Beijing Municipality                        
Beijing Co-generation  474.21   481.35   494.00   529.47   514.72   501.50 
Beijing Co-generation CCGT  —   —   —   468.79   882.33   714.90 
Tianjin Municipality                        
Yangliuqing Co-generation  407.08   414.23   438.03   483.73   434.28   457.70 
Lingang Co-generation CCGT  —   —   —   —   —   — 
Shanxi Province                        
Yushe Power Plant  333.36   363.66   396.56   393.37   391.22   386.20 
Zuoquan Power Plant  —   —   383.25   389.83   382.01   375.20 
Shandong Province                        
Dezhou Power Plant  417.68   443.20   468.90   464.89   463.36   463.40 
Jining Power Plant                        
    Phases I, II  398.11   —   —   —   —   — 
    Phases III  411.16   418.76   451.40   446.14   437.55   438.00 
    Co-generation  401.90   423.82   459.40   457.23   448.94   432.00 
Xindian Power Plant  405.67   426.77   453.75   453.35   448.55   444.30 
Weihai Power Plant  456.31   435.32   461.89   474.38   461.18   502.00 
Rizhao Power Plant Phase II  397.60   420.06   446.90   446.38   441.59   437.60 
Zhanhua Co-generation  397.40   419.76   450.55   446.56   434.71   427.60 

1824
  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Liaocheng Co-generation*
  —   —   —   —   —   385.20 
Taian Power Plant*
  —   —   —   —   —   372.90 
Laiwu Power Plant*
  —   —   —   —   —   380.40 
Muping Wind Power*
  —   —   —   —   —   640.00 
Penglai Wind Power*
  —   —   —   —   —   635.00 
Rushan Wind Power*
  —   —   —   —   —   640.00 
Changdao Wind Power*
  —   —   —   —   —   630.00 
Rongcheng Wind Power*
  —   —   —   —   —   630.00 
Dongying Wind Power*
  —   —   —   —   —   640.00 
Boshan Photovoltaic*
  —   —   —   —   —   1,000.00 
Sishui Photovoltaic*
  —   —   —   —   —   1,200.00 
Gaozhuang Photovoltaic*
  —   —   —   —   —   1,000.00 
Jining Co-generation Photovoltaic*
  —   —   —   —   —   611.45 
Henan Province
                        
Qinbei Power Plant  441.43   437.01   435.42   401.65   354.30   361.01 
Zhongyuan CCGT*
  —   —   —   —   —   600.00 
Luoyang Co-generation Power  —   —   —   384.33   365.91   365.10 
Luoyang Yangguang Power  —   —   —   365.10   316.83   355.10 
Mianchi Co-generation  —   —   —   —   328.10   328.10 
Zhumadian Wind Power  —   —   —   —   610.00   610.00 
Jiangsu Province
                        
Nantong Power Plant  441.25   435.69   436.00   430.98   407.55   385.50 
Nanjing Power Plant  442.17   436.35   463.50   453.08   400.81   383.00 
Taicang Power Plant  430.43   432.81   419.19   387.68   349.31   381.32 
Huaiyin Power Plant  458.25   449.87   438.98   450.81   433.30   380.50 
Jinling Power Plant                        
Coal-fired  427.34   428.38   408.24   385.24   348.86   388.00 
CCGT  581.35   585.53   606.21   712.13   708.41   575.00 
CCGT Co-generation  —   635.42   690.00   760.99   617.12   584.00 
Suzhou Co-generation  —   —   508.66   489.38   453.42   457.00 
Nanjing Thermal Power  —   —   —   —   445.21   462.00 
Qidong Wind Power  542.65   541.34   555.92   556.76   553.91   549.67 
Rudong Wind Power  —   610.00   610.00   610.00   606.24   610.00 

  
Year Ended December 31
 
  
2010
  
2011
  
2012
  
2013
  
2014
  
2015
 
  
Average
Tariff(1)
  
Average
Tariff(1)
  
Average
Tariff(1)
  
Average
Tariff(1)
  
Average
Tariff(1)
  
Approved
Tariff(1)
 
Henan Province                  
Qinbei Power Plant  379.68   412.75   441.43   437.01   435.42   417.10 
Jiangsu Province                        
Nantong Power Plant  409.06   425.97   441.25   435.69   436.00   429.00 
Nanjing Power Plant  414.19   442.54   442.17   436.35   463.50   429.00 
Taicang CCGT                        
Phase I   415.37   424.09   430.43   432.81   419.19   432.00 
Phase II  414.13   429.44   443.88   427.58   395.38   432.00 
Huaiyin Power Plant                        
Phase II  443.17   438.72   458.25   449.87   438.98   429.00 
Phase III   443.17   438.72   458.25   449.87   438.98   429.00 
Jinling Power Plant                         
CCGT(2)
  568.00   587.53   581.35   585.53   606.21   606.00 
Coal-fired  430.00   417.99   427.34   428.38   408.24   429.00 
CCGT Co-generation(2)
  —   —   —   635.42   690.00   690.00 
Qidong Wind Power                        
Phases I  487.70   519.08   487.70   487.75   486.88   487.70 
Phases II  —   —   610.00   610.03   609.35   610.00 
Rudong Wind Power     —   —   —   610.00   610.00   610.00 
Shanghai Municipality                        
Shidongkou I   435.52   441.11   457.18   453.27   438.21   447.10 
Shidongkou II  416.36   422.25   442.13   442.00   437.54   432.10 
Shanghai CCGT(1)
  415.32   445.00   457.11   486.74   551.48   554.00 
Shidongkou Power  445.70   457.20   463.85   462.02   449.92   457.30 
Chongqing Municipality                        
Luohuang Power Plant                        
Phases I, II  373.30   409.95   448.95   448.57   439.56   436.30 
Phase III   388.30   411.91   448.95   448.57   440.90   436.30 
Liangjiang CCGT  —   —   —   —   —   — 
Zhejiang Province                        
Yuhuan Power Plant  459.86   462.49   491.37   484.79   468.71   456.00 
Tongxiang CCGT(2)
  —   —   —   —   895.42   904.00 
Changxing Power Plant  519.39   —   —   —   431.03   456.00 
Hunan Province                        
Yueyang Power Plant                        
Phase I  433.09   467.74   506.75   504.31   496.56   492.00 
Phase II  439.92   467.74   506.75   499.63   495.90   492.00 
Phase III   —   461.98   507.03   508.31   494.20   492.00 
Xiangqi Hydropower   —   —   390.00   390.00   410.00   410.00 
Subaoding Wind Power  —   —   —   —   494.00   610.00 
Hubei Province                        
Enshi Maweigou Hydropower  —   437.03   360.00   356.96   366.59   360.00 
Jiangxi Province                        
Jinggangshan Power Plant                        
Phase I  427.56   448.30   490.70   481.54   474.79   459.50 
Phase II  408.51   446.55   482.19   483.46   467.29   453.50 
Jianggongling Wind Power  —   —   —   —   610.00   610.00 
Fujian Province                        
Fuzhou Power Plant  413.22   —   —   —   —   — 
Phase I  —   426.56   455.89   446.22   445.43   443.40 
Phase II  —   440.86   455.68   461.38   460.33   458.40 
Phase III  —   415.49   435.93   430.33   431.75   435.90 
Guangdong Province                        
Shantou Power Plant                        
Phase I  540.70   546.51   565.78   562.12   553.85   542.51 
Phase II  496.20   501.76   521.31   520.71   509.35   500.00 
Haimen  496.33   498.77   529.06   514.30   503.18   500.00 
Haimen Power  —   —   —   —   479.55   500.00 
Yunnan Province                        
Diandong Energy  —   345.43   359.58   371.30   401.59   370.60 
Diandong Yuwang  —   345.31   361.70   377.41   395.96   370.60 
Wenbishan Wind Power  —   —   —   —   610.00   610.00 
25
___________________________________________
  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Tongshan Wind Power  —   —   —   —   610.00   610.00 
Luhe Wind Power  —   —   —   —   —   610.00 
Rudong Offshore Wind Power  —   —   —   —   —   850.00 
Shanghai Municipality
                        
Shidongkou I  457.18   453.27   438.21   435.48   395.18   394.60 
Shidongkou II  442.13   442.00   437.54   410.35   380.60   395.80 
Shidongkou Power  463.85   462.02   449.92   427.42   382.31   404.80 
Shanghai CCGT(2)
  674.00   820.92   866.20   937.13   899.62   705.60 
Chongqing Municipality
                        
Luohuang Power Plant  448.95   448.57   440.90   427.84   376.92   379.60 
Liangjiang CCGT  —   —   —   872.20   649.74   491.30 
Zhejiang Province
                        
Yuhuan Power Plant  491.37   484.79   468.71   452.99   403.82   417.30 
Changxing Power Plant  —   —   431.03   487.93   420.54   442.30 
Tongxiang CCGT(2)
  —   —   1,298.37   1,278.17   887.70   580.00 
Changxing Photovoltaic  —   —   —   1,125.67   1,208.23   1,100.00 
Hongqiao Photovoltaic  —   —   —   —   980.00   980.00 
Hunan Province
                        
Yueyang Power Plant  506.87   505.13   495.31   480.55   449.87   451.85 
Subaoding Wind Power  —   —   494.00   611.72   610.00   610.00 
Guidong Wind Power  —   —   —   610.00   610.00   610.00 
Xiangqi Hydropower  390.00   390.00   410.00   410.00   404.19   380.00 
Hubei Province
                        
Wuhan Power Plant  —   —   461.99   435.47   376.53   402.62 
Jingmen Thermal Power  —   —   432.20   444.09   378.97   398.10 
Yingcheng Thermal Power  —   —   —   477.26   392.73   398.10 
Jieshan Wind Power  —   —   —   610.00   610.00   690.00 
Enshi Maweigou Hydropower  360.00   356.96   366.59   379.26   380.43   370.00 
Dalongtan Hydropower  —   —   366.89   374.80   376.38   370.00 
Jiangxi Province
                        
Jinggangshan Power Plant  483.90   482.95   468.92   443.73   399.06   404.61 
Ruijin Power  —   —   466.57   441.24   399.27   404.30 
Anyuan Power  ���   —   —   424.63   400.98   409.30 
Jianggongling Wind Power  —   —   —   —   610.00   610.00 
26
  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Anhui Province
                  
Chaohu Power Plant  —   —   412.93   409.79   351.24   374.30 
Huaining Wind Power  —   —   —   —   610.00   610.00 
Hualiangting Hydropower  —   —   346.85   392.89   385.60   369.30 
Fujian Province
                        
Fuzhou Power Plant  445.64   442.81   441.83   392.29   348.95   383.99 
Guangdong Province
                        
Shantou Power Plant  542.97   541.39   529.99   498.01   464.69   472.76 
Haimen  529.06   514.30   503.18   483.38   440.21   450.50 
Haimen Power  —   —   479.55   485.46   444.53   450.50 
Shantou Photovoltaic  —   —   —   —   980.00   980.00 
Yunnan Province
                        
Diandong Energy  359.58   371.30   401.59   435.58   513.58   335.80 
Yuwang Energy  361.70   377.41   395.96   545.42   1,394.49   335.80 
Fuyuan Wind Power  —   —   610.00   600.61   494.71   610.00 
Guizhou Province
                        
Panxian Wind Power  —   —   —   —   610.00   610.00 
Hainan Province
                        
Haikou Power Plant  —   —   474.14   457.71   420.45   419.80 
Dongfang Power Plant  —   —   482.69   460.53   420.90   419.80 
Nanshan CCGT  —   —   439.84   629.32   672.26   665.80 
Wenchang Wind Power  —   —   619.72   571.95   609.78   610.00 
Gezhen Hydropower  —   —   392.63   399.78   400.07   400.00 
Dongfang Photovoltaic  —   —   —   —   1,010.00   1,000.00 
Notes:
(1)The tariffpower plants marked * are newly acquired entities of Shanghai CCGT is on-grid settlement price without capacity subsidy income.the Company in January 2017.
(2)The tariff of Jinling CCGT, Jinling Co-generation CCGTShanghai Combined Cycle and Tongxiang CCGT isCombined Cycle consist of on-grid settlement price without generation right transferand capacity subsidy income.
19
Power sales in Singapore
According to the latest available update from EMA,EMC, the total licensedregistered capacity in commercial operation as of first half 2014for 2016 in Singapore was 12,521MW.13,366 MW, of which 10,373 MW belonged to CCGT/Cogen/Trigen facilities. In 2014,2016, the peak demand for electricity was 6,849MW6,846 MW against 2013’s 6,613MW.2015's 6,696MW. The power market in Singapore is competitive, and power generation companies compete to sell their power output into NEMS through a bidding process with hedging via vesting contracts and retail sales. ForAt the year endedend of December 31, 2014,2016, power sold through vesting contracts represented approximately 40%25% of total system demand. The existing Vesting Contract Scheme will roll back tobe maintained at 25% of total system demand byuntil the end of 2015.the first half of 2018. The decrease in allocated Vesting Contractvesting contract volumes will have to be made up through increased retail sales, or otherwise, be translated into increased exposure to more volatile pool prices.
The volatility in the sales price of the revenue associated with the sale of electricity in the NEMS is effectively managed via vesting contracts and direct retail sales which is carried out through a Tuas Power’sPower's subsidiary. The effective tariffs Tuas Power received for its electricity output is thus largely dependent on the vesting contract prices and volumes as well as prices secured under retail sales. The gas-fired combined cycle unitsMinister has also indicated the year of Tuas Power enjoy advantages in the competitive bidding of the pool market given their relatively low cost and high efficiency. For the period from January 1, 2014 to December 31, 2014, power sold through vesting contracts and retail sales represented approximately all of Tuas Power’s total power sold2018 for the same period.start of Full Retail Contestability.
Utility sales in Singapore
With the commercial operation of the Phase I in March 2013 and the Phase IIA in June 2014,In 2016, TMUC sold 1,824,6382,151,143 MT of steam to customers, in 2014,representing an increase of 54.4%8.2% as compared to 1,181,3801,988,927 MT in 2013.2015.
27
Fuel supply arrangements
In 2014,2016, the majority of our power plants were fueled by coal, gas and oil.
Coal
Our coal supply for our coal-fired power plants is mainly obtained from numerous coal producers in Shanxi Province, Inner Mongolia Autonomous Region and Gansu Province. We also obtain coal from overseas suppliers.
For past years, as part of its efforts to make a transition from a comprehensive planned economy to a “socialist market economy”, the PRC has experimented with a variety of methods of setting coal prices. In 1996, the government allowed coal prices to fluctuate within a range around a reference price for coal allocated under the State Plan to be used in electricity generation, and set maximum allowable prices in various coal-producing areas for coal used in electricity generation.
From 2002 to 2003, there was no longer an official State Plan for coal supplies, but the government continued to coordinate the coal prices at the annual national coal purchase conferences attended by, among others, representatives of each of power companies, coal suppliers, and the railway authorities and sponsored and coordinated by NDRC. Power companies obtain allocations for coal on a plant-by-plant basis. Each of the power plants then signs supply contracts with the coal suppliers, and with the railway and shipping companies for the amount of coal and transportation allocated to them. From 2004 to 2008, although such annual coal purchase conferences continue to be held, only key contracts are negotiated and executed at such conferences. Starting from 2009, in furtherance of the coal purchase reform, NDRC ceased to coordinate annual coal purchase conference and took measures to reduce government’s involvement in the coal supply negotiation. NDRC will no longer make allocation of coal supply to power companies, but instead will consolidate and publish overall framework for the coal demand and supply. The price and amount of coal supply will be determined based on the free negotiation between power companies, coal suppliers, and the railway authorities.
In 2010, the average coal price increased significantly. We purchased 114.82 million tons of coal and consumed 113.23 million tons of coal. Of our total coal purchases, 52.50% was purchased under the key contracts and the remainder was purchased in the open market. The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB605.04 per ton. Our average unit fuel cost in 2010 increased by 14.72% from that in 2009.
In 2011, the average coal price increased significantly. We purchased 144.72 million tons of coal and consumed 144.07 million tons of coal. In 2011, we adjusted the thresholds of key contracts in accordance with the NDRC’s catalogue and criteria. Of our total coal purchases, 26.13% was purchased under the key contracts and the remainder was purchased in the open market. The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB637.22 per ton. Our average unit fuel cost in 2011 increased by 9.24% from that in 2010.
In 2012, the average coal price decreased significantly. We purchased 133.47 million tons of coal and consumed 133.93 million tons of coal. Of our total coal purchases, 28.1% was purchased under the key contracts and the remainder was purchased in the open market. The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB598.27 per ton. Our average unit fuel cost in 2012 decreased by 7.6% from that in 2011.
In December 2012, the PRC Government issued a notice to further reform coal price, which mandated (1) the termination of all key coal purchase contracts between power generation companies and coal suppliers under the guidance of railway transportation capacity plan, and (2) the termination of the dual pricing system for coal pricing, from the beginning of 2013.

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In 2013, as a result of the termination of the key contracts, coal prices in PRC fluctuated wildly. The Bohai-Rim Steam Coal Price Index (“BSPI”) decreased from RMB633 per ton in the beginning of 2013 to RMB530 per ton in early October 2013, and increased again to RMB631 per ton by the end of 2013. The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB531.37 per ton. Our average unit fuel cost in 2013 decreased by 12.5% from that in 2012
In 2014, the average coal purchase price decreased significantly while the quality of the purchased coals saw marked improvement.  We purchased 120.7 million tons of coal and consumed a total of 134.9 million tons of coal. Of our total coal purchases, 52% was purchased under annual contracting arrangements, and the remainder was purchased in the open market.  The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB494.86 per ton in 2014. Our average unit fuel cost in 2014 decreased by 7.96% from that in 2013.
In 2015, the average coal purchasing price decreased significantly from the previous year. We purchased 130.56 million tons of coal and consumed 132.12 million tons of coal. Of our total coal purchases, 48% was purchased under annual contracting arrangements and the remainder was purchased in the open market. The coal
Singapore’s
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purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB408.71 per ton in 2015. Our average unit fuel cost in 2015 decreased by 13.68% from that in 2014.
In 2016, we purchased 131.60 million tons of coal and consumed 132.18 million tons of coal. Of our total coal purchases, 39% was purchased under annual contracting arrangements and the remainder was purchased in the open market. The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB423.16 per ton in 2016, representing an increase of 3.54% compared to 2015. Our average unit fuel cost in 2016 decreased by 1.76% from that in 2015.
Singapore's Tuas Power used coal as primary fuel for its TMUC’sTMUC's cogeneration plants. Coal is procured from coal producers in Indonesia via two long-term coal supply contracts with 10 yearsyear and 15 years termyear terms respectively. The prices are indexed to the Global Coal Newcastle Index.
In 2016, Tuas Power purchased an incremental amount of coal in the open market.
Gas
Currently, the Company has seventen Combined Cycle Gas Turbine Power Plants (“CCGT”("CCGT") in China, including:
1.Huaneng Shanghai Combined Cycle Gas Turbine Power Plant (“("Shanghai CCGT”CCGT") with gas supply transported through the pipeline of “West-East"West-East Gas Transport Project”Project";
2.Huaneng Jiangsu Jinling Combined Cycle Gas Turbine Power Plant (“("Jinling CCGT”CCGT") with gas supply transported through the pipeline of “West-East"West-East Gas Transport Project”Project";
3.Huaneng Jiangsu Jinling Combined Cycle Gas Turbine Co-generation Power Plant (“("Jinling CCGT Co-generation”Co-generation") with gas supply transported through the pipeline of “West-East"West-East Gas Transport Project”Project";
4.           The gas co-generation expansion project ofHuaneng Beijing Co-generation CCGT Power Plant (“("Beijing Co-generation CCGT”CCGT") with gas supply transported through the pipeline of “Shaanxi-Gansu-Ningxia Transport Project”;Shaanxi-Beijing Pipeline;
5.Huaneng Zhejiang Tongxiang Combined Cycle Gas Turbine Power Plant (“("Tongxiang CCGT”CCGT"), with gas supply transported through the pipeline of “West-East"West-East Gas Transport Project”Project";
6.Huaneng Chongqing Liangjiang Combined Cycle Gas Turbine Power Plant (“("Liangjiang CCGT”CCGT") with gas supply transported through the pipeline of “West-East"West-East Gas Transport Project”Project"; and
7.Huaneng Tianjin Lingang Combined Cycle Gas Turbine Co-generation Power Plant (“("Lingang CCGT Co-generation”Co-generation") with gas supply by CNOOC Tianjin Trading Branch and Petro China Tianjin Trading Branch;
8.Huaneng Shanxi Dongshan Combined Cycle Gas Turbine Power Plant ("Dongshan CCGT") with gas supply transported through Shaanxi-Beijing Pipeline II; and
9.Huaneng Hainnan Nanshan Combined Cycle Gas Turbine Power Plant ("Nanshan CCGT") with gas supply by CNOOC Hainan Branch.
10.               Huaneng Zhongyuan Combined Cycle Gas Turbine Power Plant ("Zhongyuan CCGT") with gas supply transported through the pipeline of “Shaanxi – Gansu – Ningxia"West-East Gas Transport Project”Project".
Also, the Tuas Power in Singapore has five gas-fired combined cycle generating units and three gas-fired backup boilers. The piped gas for Tuas Power is provided by Pavilion Gas Pte Ltd and Sembcorp Gas Pte Ltd., whereas LNG is provided by Shell Gas Marketing Pte Ltd (formally known as BG Singapore Gas Marketing Pte Ltd.Ltd).
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Oil
Tuas Power maintains operation of one 600 MW oil-fired steam generating unit. The oil supply for Tuas Power is purchased from the open market. With the increased competition from new gas-fired CCPs, fuel oil consumption is expected to be marginal at best and therefore future purchases, if any, will be on a spot basis. Diesel, as backup fuel for oil-fired unites, is also purchased on a spot basis.

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Repairs and maintenance
Each of our power plants has a timetable for routine maintenance, regular inspections and repairs. Such timetables and the procedures for the repairs and maintenance of generating units comply with the relevant regulations promulgated by the former Ministry of Electricity Power.
Pursuant to our procedures, generating units are currently operating on a cycle of four to six years. In each cycle, there are four different levels of maintenance:
(i)regular checks and routine maintenance are carried out throughout the period during which generating unit is in operation;
(ii)a small-scale servicing is performed every year, which takes approximately 20 days;
(iii)a medium-scale check-up is carried out between the two overhauls, the length of which depends on the actual condition of the generating unit at the time of the check-up and the inspections and improvements to be carried out; and
(iv)a full-scale overhaul is conducted at the end of each operating cycle, which takes approximately 60 days.
C.C.            Organizational structure
We are 35.14%33.33% owned by HIPDC, which in turn is a subsidiary of Huaneng Group. Huaneng Group was established in 1988 with the approval of the State Council. Huaneng Group also holds a 14.87%13.83% equity interest in us besides HIPDC.  In 2002, Huaneng Group was restructured as one of the five independent power generation group companies to take over the power generation assets originally belonging to the State Power Corporation of China. Huaneng Group has a registered capital of RMB20 billion and is controlled and managed by the central government. Huaneng Group is principally engaged in development, investment, construction, operation and management of power plants; organizing the generation and sale of power (and heat); and the development, investment, construction, production and sale of products in relation to energy, transportation, new energy and environmental protection industries.
HIPDC was established in 1985 as a joint venture with 67.75% of its equity interests directly ownedcontrolled by Huaneng Group. HIPDC is engaged in developing, investing, operating and constructing power plants in China. Some of the power plants currently owned and operated by us were originally built and later transferred to us by HIPDC. Both Huaneng Group and HIPDC have agreed to give us preferential rights in the power development business and power assets transfers. See “Item"Item 7.A. Major shareholders”shareholders" for details.
The following organizational chart sets forth the organizational structure of HIPDC and us as of March 31, 2015:2017:
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Notes:
Notes:
(1)*Huaneng Group indirectly holds 100% equity interests in Pro-Power Investment Limited through its wholly owned subsidiary, China Hua Neng Hong Kong Company Limited, and Pro-Power Investment Limited in turn holds 5%25% equity interests in HIPDC. As a result, Huaneng Group indirectlybeneficially holds additional 5%100% of equity interests in HIPDC.

(2)**Of the 14.87%13.83% equity interest, 10.78%10.23% was directly held by Huaneng Group, 3.27%3.11% was held by Huaneng Group through its wholly owned subsidiary, China Hua Neng Hong Kong Company Limited, 0.04% was held by Huaneng Group through its wholly owned subsidiary, Huaneng Captial Services Company Limited, and the remaining approximately 0.77%0.49% was held by Huaneng Group through its subsidiary, China Huaneng Finance Corporation Limited.
For a detailed discussion of the Company’sCompany's subsidiaries, see Note 9 to the Financial Statements.

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D.D.            Property, plants and equipment
The following table presents certain summary information on our power plants as of March 31, 2015.2017.
Plant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
           
Heilongjiang Province
          
Xinhua Power Plant Unit I: Sep. 1979 1 x 200 70% 140 Coal
  Unit II: Sep. 2005 1 x 330 70% 231  
Hegang Power Plant Unit I: Nov. 1998 1x 300 64% 192 Coal
  Unit II: Nov. 1999 1x 300 64% 192  
  Unit III: Apr. 2007 1 x 600 64% 384  
Daqing Co-generation Unit I: Jun. 2013 1 x 350 100% 350 Coal
  Unit II: Aug. 2013 1 x 350 100% 350  
Yichun Co-generation Unit I: Sep. 2015 1 x 350 100% 350 Coal

Plant or Expansion
 
Actual
In-service Date
 
Current
Installed
Capacity
 
Ownership
 
Attributable
Capacity
 
Type
of Fuel
(Names as defined below)   (MW) % MW  
             
Liaoning Province            
Dalian Power Plant Phase I Unit I: Sep. 1988 2 x 350 100% 700 Coal
    Unit II: Dec. 1988        
  Phase II Unit III: Jan. 1999 2 x 350 100% 700 Coal
    Unit IV: Jan. 1999        
Dandong Power Plant   Unit I: Jan. 1999 2 x 350 100% 700 Coal
    Unit II: Jan. 1999        
Yingkou Power Plant Phase I Unit I: Jan. 1996 2 x 320 100% 640 Coal
    Unit II: Dec. 1996        
  Phase II Unit III: Aug. 2007 2 x 600 100% 1,200 Coal
    Unit IV: Oct. 2007        
Yingkou Co-generation   Unit I: Dec. 2009 2 x 330 100% 660 Coal
    Unit II: Dec. 2009        
Wafangdian Wind Power   24 turbines: Jun. 2011 48 100% 48 Wind
Changtu Taiping Wind Power   33 turbines: Nov. 2012 49.5 100% 49.5 Wind
Changtu Laocheng Wind Power   24 turbines: Oct. 2014 48 100% 48 Wind
Suzihe Hydropower   Unit I: Aug. 2012 1 x 12.5 100% 12.5 Hydro
    Unit II: Jun. 2012 1 x 12.5 100% 12.5 Hydro
    Unit III: Jun. 2012 1 x 12.5 100% 12.5 Hydro
Inner Mongolia            
Autonomous Region            
Huade Wind Power Phase I 33 turbines: Dec. 2009 49.5 100% 49.5 Wind
  Phase II 33 turbines: Jun. 2011 49.5 100% 49.5 Wind
Hebei Province            
Shang’ an Power Plant Phase I Unit I: Aug. 1990 2 x 350 100% 700 Coal
             
    Unit II: Dec. 1990        
  Phase II Unit III: Oct. 1997 2 x 300 100% 600 Coal
    Unit IV: Oct. 1997        
  Phase III Unit V: Jul. 2008 2 x 600 100% 1,200 Coal
    Unit VI: Aug. 2008        
Kangbao Wind Power Phase I 33 turbines: Jan. 2011 49.5 100% 49.5 Wind
Gansu Province            
Pingliang Power Plant   Unit I: Sep. 2000 3 x 325 65% 633.75 Coal
    Unit II: Jun. 2001        
    Unit III: Jun. 2003        
    Unit IV: Nov. 2003 1 x 330 65% 214.5 Coal
    Unit V: Feb. 2010 2 x 600 65% 780 Coal
    Unit VI: March 2010        
Jiuquan Wind Power   326 turbines: Dec. 2011 501.5 100% 501.5 Wind
Anbei Third Wind Power   100 turbines: Dec. 2014 200 100% 200 Wind
Beijing Municipality            
Beijing Co-generation   Unit I: Jan. 1998 2 x 165 41% 135.3 Coal
    Unit II: Jan. 1998        
    Unit III: Dec. 1998 2 x 220 41% 180.4 Coal
    Unit IV: Jun. 1999        
    Unit V: Apr. 2004 1 x 75 41% 30.75 Coal
Beijing Co-generation   Unit I: Dec. 2011 2 x 306.9 41% 251.66 Gas
CCGT            
    Unit II: Dec. 2011        
    Unit III: Dec. 2011 1 x 309.6 41% 126.94 Gas
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Plant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
           
  Unit II: Dec. 2015 1 x 350 100% 350  
Sanjiangkou Wind Power 66 turbines: Feb. 2010 99 82.85% 82 Wind
Linjiang Jiangsheng Wind Power 66 turbines: Oct. 2015 99 82.85% 82 Wind
Daqing Heping Aobao Wind Power 32 turbines: Dec. 2011 96 100% 96 Wind
  32 turbines: May. 2012 96 100% 96  
  16 turbines: Dec. 2016 48 100% 48  
  16 turbines: Dec. 2016 48 100% 48  
Jilin Province
          
Jiutai Power Plant Unit I: Oct. 2009 1 x 670 100% 670 Coal
  Unit II: Dec. 2009 1 x 670 100% 670  
Changchun Co-generation Unit I: Dec. 2009 1 x 350 100% 350 Coal
  Unit II: Apr. 2009 1 x 350 100% 350  
Nongan Biomass Dec. 2011 1 x 25 100% 25 Biomass
Linjiang Jubao Hydropower Sep. 2004 2 x 10 100% 20 Solar
Zhenlai Wind Power 33 turbines: Jun. 2009 49.5 100% 49.5 Wind
  33 turbines: Dec. 2011 49.5 100% 49.5  
Siping Wind Power 50 turbines: Oct. 2010 75 100% 75 Wind
  25 turbines: Nov. 2010 50 100% 50  
  50 turbines: Dec. 2010 75 100% 75  
Tongyu Tuanjie Wind Power 74 turbines: Dec. 2015 148 100% 148 Wind
Liaoning Province
          
Dalian Power Plant       Phase I Unit I: Sep. 1988 2 x 350 100% 700 Coal
  Unit II: Dec. 1988        
Phase II Unit III: Jan. 1999 2 x 350 100% 700 Coal
  Unit IV: Jan. 1999        
Dandong Power Plant Unit I: Jan. 1999 2 x 350 100% 700 Coal
  Unit II: Jan. 1999        
Yingkou Power Plant   Phase I Unit I: Jan. 1996 2 x 320 100% 640 Coal
  Unit II: Dec. 1996        
Phase II Unit III: Aug. 2007 2 x 600 100% 1,200 Coal
  Unit IV: Oct. 2007        
Yingkou Co-generation Unit I: Dec. 2009 2 x 330 100% 660 Coal
  Unit II: Dec. 2009        
Wafangdian Wind Power 24 turbines: Jun. 2011 48 100% 48 Wind
Changtu Wind Power 33 turbines: Nov. 2012 97.5 100% 97.5 Wind
  24 turbines: Oct. 2014        
Suzihe Hydropower 2012 3 x 12.5 100% 37.5 Hydro
Dandong Photovoltaic May. 2016 10 100% 10 Solar
Yingkou Co-generation Photovoltaic Jun. 2016 10 100% 10 Solar
Xianrendao Co-generation Mar. 2017 1 x 50 100% 50 Coal
Inner Mongolia
          
Autonomous Region
          
Huade Wind Power      Phase I 33 turbines: Dec. 2009 49.5 100% 49.5 Wind
Phase II 33 turbines: Jun. 2011 49.5 100% 49.5 Wind
Hebei Province
          
Shang' an Power Plant   Phase I Unit I: Aug. 1990 2 x 350 100% 700 Coal
  Unit II: Dec. 1990        
  Phase II Unit III: Oct. 1997 2 x 330 100% 660 Coal
  Unit IV: Oct. 1997        

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Plant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
           
   Phase III Unit V: Jul. 2008 2 x 600 100% 1,200 Coal
  Unit VI: Aug. 2008        
Kangbao Wind Power    Phase I 33 turbines: Jan. 2011 49.5 100% 49.5 Wind
Kangbao Xitan Photovoltaic Jun. 2016 20 100% 20 Solar
Gansu Province
          
Pingliang Power Plant Unit I: Sep. 2000 3 x 325 65% 633.75 Coal
  Unit II: Jun. 2001        
  Unit III: Jun. 2003        
  Unit IV: Nov. 2003 1 x 330 65%  214.5  Coal
  Unit V: Feb. 2010 2 x 600 65%  780  Coal
  Unit VI: March 2010        
Jiuquan Wind Power 259 turbines: Dec. 2011 401 100%  401  Wind
Jiuquan II Wind Power 100 turbines: Dec. 2014 200 100%  200 Wind
  100 turbines: Jun. 2015 200 100%  200  Wind
Yumen Wind Power 24 turbines: Jun. 2015 48 100%  48  Wind
  67 turbines: Jun. 2015 100.5 100%  100.5  Wind
Yigang Wind Power 96 turbines: Dec. 2015 192 100%  192  Wind
Beijing Municipality
          
Beijing Co-generation Unit I: Jan. 1998 2 x 165 41% 135.3 Coal
  Unit II: Jan. 1998        
  Unit III: Dec. 1998 2 x 220 41% 180.4 Coal
  Unit IV: Jun. 1999        
  Unit V: Apr. 2004 1 x 75 41% 30.75 Coal
Beijing Co-generation CCGT Unit I: Dec. 2011 2 x 306.9 41% 251.66 Gas
  Unit II: Dec. 2011        
  Unit III: Dec. 2011 1 x 309.6 41% 126.936 Gas
Tianjin Municipality
          
Yangliuqing Co-generation Unit I: Dec. 1998 4 x 300 55% 660 Coal
  Unit II: Sep. 1999        
  Unit III: Dec. 2006        
  Unit IV: May 2007        
Lingang Co-generation CCGT Unit I: Dec. 2014 1 x 313 100% 463 Gas
    1 x 150      
           
Shanxi Province
          
Yushe Power Plant       Phase I Unit I: Aug. 1994 2 x 100 60% 120 Coal
  Unit III: Dec. 1994        
Phase II Unit IV: Oct. 2004 2 x 300 60% 360 Coal
  Unit II: Nov. 2004        
Zuoquan Power Plant Unit I: Dec. 2011 2 x 673 80% 1,076.8 Coal
  Unit II: Jan. 2012        
Dongshan CCGT Unit I: Oct. 2015 2 x297.7 100%  595.4  Gas
  Unit II: Oct. 2015        
  Unit III: Oct. 2015 263.6 100%  263.6  Gas
Shandong Province
          
Dezhou Power Plant Phase I
 Unit I: 1992 1 x 330 100% 330 Coal
  Unit II: 1992 1 x 320 100% 320 Coal
Phase II Unit III: Jun. 1994 1 x 330 100% 330 Coal

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Plant or Expansion  
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)    (MW) % MW  
            
   Unit IV: May 1995 1 x 320 100% 320 Coal
   Phase III Unit V: Jun. 2002 2 x 700 100% 1,400 Coal
   Unit VI: Oct. 2002        
Jining Power Plant      Coal-fired Unit V: Jul. 2003 2 x 135 100% 270 Coal
   Unit VI: Aug. 2003        
 Co-generation Unit I: Nov. 2009 2 x 350 100% 700 Coal
   Unit II: Dec. 2009        
Xindian Power PlantPhase III Unit V: Sep 2006 2 x 300 95% 570 Coal
   Unit VI: Nov. 2006        
Weihai Power PlantPhase II Unit III: Mar. 1998 2 x 320 60% 384 Coal
   Unit IV: Nov. 1998        
Phase III Unit V: Dec. 2012 2 x 680 60% 816 Coal
   Unit VI: Dec. 2012        
Rizhao Power PlantPhase II Dec. 2008 2 x 680 100% 1,360 Coal
            
Zhanhua Co-generation  Jul. 2005 2 x 165 100% 330 Coal
            
Baiyanghe Power Plant  Unit I: Oct. 2003 1 x 145 80% 116 Coal
   Unit II: Oct. 2003 1 x 145 80% 116  
   Unit III: Dec. 2009 1 x 300 80% 240  
   Unit IV: Dec. 2009 1 x 300 80% 240  
Rizhao Power PlantPhase I Unit I: Sep. 1999 1 x 350 88.8% 311 Coal
   Unit II: Jan. 2003 1 x 350 88.8% 311  
Jiaxiang Power Plant  Unit I: Oct. 2006 1 x 330 40% 132 Coal
   Unit II: May. 2007 1 x 330 40% 132  
Jining Co-generation  Unit I: Apr. 2004 1 x 30 40% 12 Coal
   Unit II: Jul. 2004 1 x 30 40% 12  
Qufu Co-generation  Units I: Feb. 2009 1 x 225 40% 90 Coal
   Unit II: Sep. 2009 1 x 225 40% 90  
Huangtai Power Plant  Unit I: Nov. 1987 1 x 330 72% 237.6 Coal
   Unit II: Jan. 2011 1 x 350 72% 252  
   Unit III: Jan. 2011 1 x 350 72% 252  
Yantai Power Plant  Unit I: Apr. 1996 1 x 110 80% 88 Coal
   Unit II: Oct. 2005 1 x 160 80% 128  
   Unit III: Dec. 2005 1 x 160 80% 128  
   Unit IV: Oct. 2006 1 x 160 80% 128  
Linyi Power Plant  Unit I: Dec. 2012 1 x 350 60% 210 Coal
   Unit II: Oct. 2013 1 x 350 60% 210  
   Unit III: Dec. 1997 1 x 140 60% 84  
   Unit IV: Apr. 2003 1 x 140 60% 84  
   Unit V: Sep. 2003 1 x 140 60% 84  
   Unit VI: Apr. 2005 1 x 140 60% 84  
Jining Yunhe Power Plant  Unit I: Jul. 2000 1 x 145 78.68% 114.09 Coal
   Unit II: Nov. 2000 1 x 145 78.68% 114.09  
   Unit III: Sep. 2003 1 x 145 78.68% 114.09  
   Unit IV: Feb. 2004 1 x 145 78.68% 114.09  
   Unit V: Sep. 2006 1 x 330 78.68% 259.64  
   Unit VI: Mar. 2006 1 x 330 78.68% 259.64  
Liaocheng Co-generation  Unit I: Jan. 2006 1 x 330 60% 198 Coal

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Plant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
           
  Unit II: Sep. 2006 1 x 330 60% 198  
Taian Power Plant Unit I: May. 2007 1 x 150 80% 120 Coal
  Unit II: Dec. 2007 1 x 150 80% 120  
Laiwu Power Plant Unit I: Dec. 2015 1 x 1000 64% 640 Coal
  Unit II: Nov. 2016 1 x 1000 64% 640  
Muping Wind Power 28 turbines: Dec. 2010 42 80% 34 Wind
Penglai Wind Power 24 turbines: Sep. 2014 48 80% 38.4 Wind
  1 turbine: Sep. 2014 1.8 80% 1.44  
  24 turbines: Oct. 2016 48 80% 3.8.4  
  1 turbine: Oct. 2016 1.8 80% 1.44  
Rushan Wind Power 8 turbines: Sep. 2014 12 80% 9.6 Wind
  11 turbines: Sep. 2014 16.5 80% 13.2  
  2 turbines: Oct. 2016 3 80% 2.4  
  5 turbines: Oct. 2016 10.5 80% 8.4  
Changdao Wind Power 8 turbines: Sep. 1999 4.8 48% 10 Wind
  6 turbines: Dec. 2004 3.6 48% 1.73  
  3 turbines: Jul. 2005 2.25 48% 1.08  
  1 turbine: Apr. 2006 1.3 48% 0.62  
  3 turbines: Apr. 2006 2.25 48% 1.08  
  2 turbines: Sep. 2006 2.6 48% 1.25  
  1 turbine: Sep. 2006 0.75 48% 0.36  
  2 turbines: Jan. 2007 1.5 48% 0.72  
  2 turbines: Oct. 2008 1.5 48% 0.72  
Rongcheng Wind Power 1 turbine: Jan. 2006 1.5 48% 0.72 Wind
  1 turbine: Jan. 2006 1.5 48% 0.72  
  1 turbine: Jan. 2006 1.5 48% 0.72  
  2 turbines: Feb. 2006 3 48% 1.44  
  2 turbines: Feb. 2006 3 48% 1.44  
  3 turbines: Mar. 2006 4.5 48% 2.16  
Dongying Wind Power 32 turbines: Dec. 2009 48 56% 27 Wind
Boshan Photovoltaic May. 2016 12 80% 10 Solar
Sishui Photovoltaic Jun. 2015 20 80% 16 Solar
Gaozhuang Photovoltaic May. 2016 20 80% 16 Solar
Jining Co-generation Photovoltaic   20 80% 16 Solar
Henan Province
          
Qinbei Power Plant      Phase I Unit I: Nov. 2004 2 x 600 60% 720 Coal
  Unit II: Dec. 2004        
Phase II Unit III: Nov. 2007 2 x 600 60% 720 Coal
  Unit IV: Nov. 2007        
Phase III Unit V: Mar. 2012 2 x 1000 60% 1,200 Coal
  Unit VI: Feb. 2013        
Zhongyuan CCGT Unit I: Aug. 2007 2 x 390 90% 702  Coal
  Unit II: Jan. 2008        
Luoyang Co-generation Power Plant Unit I: May. 2015 2 x 350 80%  560  Coal
  Unit II: Jun. 2015        
Luoyang Yangguang Power Plant Unit I: Jun. 2006 2 x 135 80% 216  Coal
  Unit II: Oct. 2006        
Mianchi Co-generation Unit I: Dec. 2016 2 x 350 60% 420  Coal
  Unit II: Dec. 2016        
Guoji Wind Power 16 turbines: Dec 2016 32 90% 28.8 Wind
Jiangsu Province
          
 
2335

Plant or Expansion
Actual
In-service Date
Current Installed CapacityOwnershipAttributable CapacityType of Fuel
(Names as defined below) (MW)%MW 
      
Nantong Power Plant Phase I
Unit I: Sep. 19892 x 352100%704Coal
 Unit II: Mar. 1990    
   Phase IIUnit III: Jul. 19992 x 350100%700Coal
 Unit IV: Oct. 1999    
Nanjing Power PlantUnit I: Mar. 19942 x 320100%640Coal
 Unit II: Oct. 1994    
Taicang Power Plant Phase I
Unit I: Dec. 19992 x 32075%480Coal
 Unit II: Apr. 2000    
  Phase IIUnit III: Jan. 20062 x 63075%945Coal
 Unit IV: Feb. 2006    
Huaiyin Power Plant Phase II
Unit III: Jan. 20052 x 33063.64%420Coal
 Unit IV: Mar. 2005    
 Phase IIIUnit V: May 20062 x 33063.64%420Coal
 Unit VI: Sep. 2006    
Jinling Power Plant      CCGTUnit I: Dec. 20062 x 39060%468Gas
 Unit II: Mar. 2007    
CCGTUnit I: April 20132 x 126.751%195.1Gas
CogenerationUnit II: May 20132 x 64.6   
Jinling Coal-FiredUnit III: Dec. 20092 x 1,03060%1,236Coal
 Unit IV: Aug. 2012    
Suzhou Co-generationUnit I: Aug. 20062 x 6053.45%64.14Coal
 Unit II: Oct. 2006    
Nanjing Chemical Industry Park Co-generationUnit I: Apr. 20165070%35Coal
 Unit II: Dec. 20165070%35 
Qidong Wind Power Phase I
61 turbines: Mar. 200991.565%59.5Wind
 Phase II25 turbines: Jan. 20115065%32.5Wind
 22 turbines: Jun. 20124465%28.6Wind
Rudong Wind Power24 turbines: Nov. 20134890%43.2Wind
Tongshan Wind Power25 turbines: Mar. 20165070%35Wind
Luhe Wind Power25 turbines: Dec. 201650100%50Wind
Rudong Offshore Wind Power 12 x 4.270%35.3Wind
Shanghai Municipality
     
Shidongkou IUnit I: Feb. 19884 x 325100%1,300Coal
 Unit II: Dec. 1988    
 Unit III: Sep. 1989    
 Unit IV: May 1990    
Shidongkou IIUnit I: Jun. 19922 x 600100%1,200Coal
 Unit II: Dec. 1992    
Shidongkou PowerUnit I: Oct. 20112 x 66050%660Coal
 Unit II: Oct. 2011    
Shanghai CCGTUnit I: May 20063 x 39070%819Gas
 Unit II: Jun. 2006    
 Unit III: Jul. 2006    
Chongqing Municipality
     
Luohuang Power Plant Phase I
Unit I: Sep. 19912 x 36060%432Coal
 Unit II: Feb. 1992    
     Phase IIUnit III: Dec. 19982 x 36060%432Coal
 Unit IV: Dec. 1998    
     Phase IIIUnit V: Dec. 20062 x 60060%720Coal
Plant or Expansion
 
Actual
In-service Date
 
Current
Installed
Capacity
 
Ownership
 
Attributable
Capacity
 
Type
of Fuel
(Names as defined below)   (MW) % MW  
Tianjin Municipality            
Yangliuqing Co-generation   Unit I: Dec. 1998 4 x 300 55% 660 Coal
    Unit II: Sep. 1999        
    Unit III: Dec. 2006        
    Unit IV: May 2007        
Lingang Co-generation CCGT   Unit I: Dec. 2014 1 x 463 100 463 Gas
Shanxi Province            
Yushe Power Plant Phase I Unit I: Jun. 1994 2 x 100 60% 120 Coal
    Unit III: Dec. 1994        
  Phase II Unit IV: Oct. 2004 2 x 300 60% 360 Coal
    Unit II: Nov. 2004        
Zuoquan Power Plant   Unit I: Dec. 2011 2 x 673 80% 1,076.8 Coal
    Unit II: Jan. 2012        
Shandong Province            
Dezhou Power Plant Phase I Units I: 1992 1 x 330 100% 330 Coal
    Unit II: 1992 1 x 320 100% 320 Coal
  Phase II Units III: Jun. 1994 1 x 300 100% 300 Coal
    Unit IV: May 1995 1 x 320 100% 320 Coal
  Phase III Units V: Jun. 2002 2 x 700 100% 1,400 Coal
    Unit VI: Oct. 2002        
Jining Power Plant Coal-fired Unit V: Jul. 2003 2 x 135 100% 270 Coal
    Unit VI: Aug. 2003        
  Co-generation Unit I: Nov. 2009 2 x 350 100% 700 Coal
    Unit II: Dec. 2009        
Xindian Power Plant Phase III Unit V: Sep 2006 2 x 300 95% 570 Coal
    Unit VI: Nov. 2006        
Weihai Power Plant Phase II Units III: Mar. 1998 2 x 320 60% 384 Coal
    Unit IV: Nov. 1998        
  Phase III Unit V: Dec. 2012 2 x 680 60% 816 Coal
    Unit VI: Dec. 2012        
Rizhao Power  Plant Phase I Unit I: Apr. 2000 2 x 350 44% 308 Coal
    Unit II: Apr. 2000        
  Phase II Unit III: Dec. 2008 2 x 680 100% 1,360 Coal
    Unit IV: Dec. 2008        
Zhanhua Co-generation   Unit I: Jul. 2005 2 x 165 100% 330 Coal
    Unit II: Jul. 2005        
Henan Province            
Qinbei Power Plant Phase I Unit I: Nov. 2004 2 x 600 60% 720 Coal
    Unit II: Dec. 2004        
  Phase II Unit III: Nov. 2007 2 x 600 60% 720 Coal
    Unit IV: Nov. 2007        
  Phase III Unit V: Mar. 2012 2 x 1000 60% 1,200 Coal
    Unit VI: Feb. 2013        
Jiangsu Province            
Nantong Power Plant Phase I Unit I: Sep. 1989 2 x 352 100% 704 Coal
    Unit II: Mar. 1990        
  Phase II Unit III: Jul. 1999 2 x 350 100% 700 Coal
    Unit IV: Oct. 1999        
  Phase III Unit V: Jan. 2014 1 x 1050 35% 367.5 Coal
Nanjing Power Plant   Unit I: Mar. 1994 2 x 320 100% 640 Coal
    Unit II: Oct. 1994        
Taicang Power Plant Phase I Unit I: Dec. 1999 2 x 320 75% 480 Coal
    Unit II: Apr. 2000        
  Phase II Unit III: Jan. 2006 2 x 630 75% 945 Coal
    Unit IV: Feb. 2006        

2436

Plant or Expansion 
Actual
In-service Date
Current Installed CapacityOwnershipAttributable CapacityType of Fuel
(Names as defined below)  (MW)%MW 
       
  Unit VI: Jan. 2007    
Liangjiang CCGT Unit I: Oct. 20142 x 46790%840.6Gas
  Unit II: Dec. 2014    
Zhejiang Province
      
Changxing Power Plant Unit I: Dec. 20142 x 660100%1320Coal
  Unit II: Dec. 2014    
Yuhuan Power Plant 
Phase IUnit I: Nov. 20062 x 1,000100%2,000Coal
  Unit II: Dec. 2006    
 Phase IIUnit III: Nov. 20072 x 1,000100%2,000Coal
  Unit IV: Nov. 2007    
Tongxiang CCGT Unit I: Sep. 20141 x 258.495%245.48Gas
  Unit II: Sep. 20141 x 20095%190Gas
Changxing  Photovoltaic Dec. 20145100%5Solar
  Mar. 20155100%5Solar
Changxing Hongqiao Photovoltaic Sep. 201630100%30Solar
Hunan Province
      
Yueyang Power Plant 
Phase IUnit I: Sep. 19912 x 362.555% 398.75 Coal
  Unit II: Dec. 1991    
 Phase IIUnit III: Mar. 20062 x 30055% 330 Coal
  Unite IV: May 2006    
 Phase IIIUnit V: Jan. 20112 x 60055% 660 Coal
  Unit VI: Aug. 2012    
Xiangqi Hydropower Unit I: Dec. 20114 x 20100% 80 Hydro
  Unit II: May 2012    
  Unit III: Jul. 2012    
  Unit IV: Aug. 2012    
Subaoding Wind Power 40 turbines: Dec. 201480100%80 Wind
  35 turbines: May. 201570100%70 Wind
Guidong Wind Power 42 turbines: Aug. 201548100% 48 Wind
  18 turbines: Sep. 201536100% 36 Wind
Hubei Province
      
Enshi  Maweigou Hydropower Dec. 20113 x 5100% 15 Hydro
  Dec. 20152 x 20100% 40 Hydro
Dalongtan Hydropower Unit I: May 20063 x 1297% 34.92 Hydro
  Unit II: Aug. 20051 x 1.697% 1.55 Hydro
  Unit III: Mar. 2006    
Wuhan Power Plant 
Phase IUnit I: Jun. 19932 x 30075% 450 Coal
  Unit II: Jan. 1994    
 Phase IIUnit III: May 19972 x 33075% 495 Coal
  Unite IV: Dec. 1997    
 Phase IIIUnit V: Oct. 20062 x 60075% 900 Coal
  Unit VI: Dec. 2006    
Jingmen Co-generation Unit I: Nov. 20142 x 350100%700Coal
  Unit II: Oct. 2014    
Yingcheng Co-generation Unit II: Jan. 20151 x 350100%350Coal
  Unit I: Jun. 20161 x 50100%50Coal
Jieshan Wind Power 
Phase I24 turbines: Jun. 201548100% 48 Wind
 Phase II36 turbines: Aug. 201672100%72 Wind
Jiangxi Province
      

Plant or Expansion
 
Actual
In-service Date
 
Current
Installed
Capacity
 
Ownership
 
Attributable
Capacity
 
Type
of Fuel
(Names as defined below)   (MW) % MW  
Huaiyin Power Plant Phase II Unit III: Jan. 2005 2 x 330 63.64% 420 Coal
    Unit IV: Mar. 2005        
  Phase III Unit V: May 2006 2 x 330 63.64% 420 Coal
    Unit VI: Sep. 2006        
Jinling Power Plant CCGT Unit I: Dec. 2006 2 x 390 60% 468 Gas
    Unit II: Mar. 2007        
  
CCGT
Cogeneration
 Unit I: April. 2013 Unit II: May. 2013 2 x 191 51% 194.82 Gas
Jinling Coal-fired   Unit III: Dec. 2009 2 x 1,030 60% 1,236 Coal
    Unit IV: Aug. 2012        
Qidong Wind Power Phase I 61 turbines: Mar. 2009 91.5 65% 59.5 Wind
  Phase II 25 turbines: Jan. 2011 50 65% 32.5 Wind
    22 turbines: Jun. 2012 44 65% 28.6 Wind
Rudong Wind Power   24 turbines: Nov. 2013 48 90% 24.48 Wind
Suzhou Co-generation   Unit I: Aug. 2006 2 x60 53.45% 64.14 Coal
    Unit II: Oct. 2006        
Shanghai Municipality            
Shidongkou I   Unit I: Feb. 1988 4 x 325 100% 1,300 Coal
    Unit II: Dec. 1988        
    Unit III: Sep. 1989        
    Unit IV: May 1990        
Shidongkou II   Unit I: Jun. 1992 2 x 600 100% 1,200 Coal
    Unit II: Dec. 1992        
Shidongkou Power   Unit I: Oct. 2011 2 x 660 50% 660 Coal
    Unit II: Oct. 2011        
Shanghai CCGT   Unit I: May 2006 3 x 390 70% 819 Gas
    Unit II: Jun. 2006        
    Unit III: Jul. 2006        
Chongqing Municipality            
Luohuang Power Plant Phase I Unit I: Sep. 1991 2 x 360 60% 432 Coal
    Unit II: Feb. 1992        
  Phase II Unit III: Dec. 1998 2 x 360 60% 432 Coal
    Unit IV: Dec. 1998        
  Phase III Unit V: Dec. 2006 2 x 600 60% 720 Coal
    Unit VI: Jan. 2007        
 Liangjiang CCGT   Unit I: Oct. 2014 2 x 467 100% 934 Gas
    Unit II: Dec. 2014        
Zhejiang Province            
Changxing Power Plant   Unit I: Dec. 2014 2 x 660 100% 1320 Coal
    Unit II: Dec. 2014        
Yuhuan Power Plant Phase I Unit I: Nov. 2006 2 x 1,000 100% 2,000 Coal
    Unit II: Dec. 2006        
  Phase II Unit III: Nov. 2007 2 x 1,000 100% 2,000 Coal
    Unit IV: Nov. 2007        
Tongxiang CCGT   Unit I: Sep. 2014 1 x 258.4 95% 245.48 Gas
    Unit II: Sep. 2014 1 x 200 95% 190 Gas
Si’an  Photovoltaic   Unit I: December 2014 5 100% 5 Solar
Hunan Province            
Yueyang Power Plant Phase I Unit I: Sep. 1991 2 x 362.5 55% 398.75 Coal
    Unit II: Dec. 1991        
  Phase II Unit III: Mar. 2006 2 x 300 55% 330 Coal
    Unite IV: May 2006        
  Phase III Unit V: Jan. 2011 2 x 600 55% 660 Coal
    Unit VI: Aug. 2012        
Xiangqi Hydropower   Unit I: Dec. 2011 4 x 20 100% 80 Hydro
    Unit II: May 2012        
    Unit III: Jul. 2012        
    Unit IV: Aug. 2012        
Subaoding Wind Power   40 turbines: Dec. 2014 80 100% 80 Wind
2537

Plant or Expansion  
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)    (MW) % MW  
            
Jinggangshan Power Plant 
Phase I Unit I: Dec. 2000 2 x 300 100% 600 Coal
   Unit II: Aug. 2001        
           Phase II Unit III: Nov. 2009 2 x 660 100% 1,320 Coal
   Unit IV: Dec. 2009        
Jianggongling Wind Power  24 turbines: Dec. 2014 48 100% 48 Wind
Ruijin Power Plant  Unit I: May 2008 2 x 350 100% 700 Coal
   Unit II: Aug. 2008        
Anyuan Power Plant  Unit I: Jun. 2015 2 x 660 100%  1,320  Coal
   Unit II: Aug. 2015        
 Hushazui Wind Power  13 turbines: Dec. 2016 26 100% 26 Wind
Anhui Province
           
Chaohu Power Plant  Unit I:  May 2008 2 x 600 60% 720 Coal
   Unit II:  Aug. 2008        
Hualiangting Hydropower 
Phase I Unit I: Oct. 1981 2 x 10 100% 20 Hydro
   Unit II: Nov. 1981        
           Phase II Unit III: Nov. 1987 2 x 10 100% 20 Hydro
   Unit IV: Nov. 1987        
Huaining Wind Power  25 turbines: Jun. 2016 50 100% 50 Wind
Fujian Province
           
Fuzhou Power Plant 
Phase I Unit I: Sep. 1988 2 x 350 100% 700 Coal
   Unit II: Dec. 1988        
Phase II Unit III: Oct. 1999 2 x 350 100% 700 Coal
   Unit IV: Oct. 1999        
 Phase III Unit V: Jul. 2010 2 x 660 100% 660 Coal
Guangdong Province
           
Shantou Power Plant 
Phase I Unit VI: Oct. 2011 2 x 300 100% 600 Coal
   Unit I: Jan. 1997        
   Unit II: Jan. 1997        
 Phase II Unit III: Oct. 2005 1 x 600 100% 600 Coal
Haimen  Unit I: Jul. 2009 2 x 1,036 100% 2,072 Coal
   Unit II: Oct. 2009        
Haimen Power  Unit I: Mar. 2013 2 x 1,036 80% 1,657.6 Coal
   Unit II: Mar. 2013        
Shantou Photovoltaic  Sep. 2016 17 100% 17 Solar
Yunnan Province
           
Diandong Energy        Phase I Unit I: Feb. 2006 2 x 600 100% 1,200 Coal
   Unit II: Jul. 2006        
 Phase II Unit III: Nov. 2006 2 x 600 100% 1,200 Coal
   Unit IV: May 2007        
Yuwang Energy            Phase I Unit I: Jul. 2009 2 x 600 100% 1,200 Coal
   Unit II: Feb. 2010        
Fuyuan Wenbishan Wind Power  20 turbines: Dec. 2014 40 100% 40 Wind
Fuyuan Yibasan Wind Power  24 turbines: Dec. 2014 48 100% 48 Wind
Fuyuan Shengjing Wind Power  20 turbines: Jun. 2016 48 100% 48 Wind
Hainan Province
           
Haikou Power Plant  Unit IV: May 2000 2 x 138 91.8% 253.368 Coal
   Unit V: May 1999        
   Unit VIII: Apr. 2006 2 x 330 91.8% 605.88 Coal
   Unit IX: May 2007        

Plant or Expansion Actual
In-service Date		 
Current
Installed Capacity
 Ownership Attributable
Capacity		 Type
of Fuel
(Names as defined below)     (MW) % MW  
Hubei Province            
Enshi  Maweigou Hydropower   Unit I: Dec. 2011 3 x 5 100% 15 Hydro
    Unit II: Dec. 2011        
    Unit III: Dec. 2011        
Dalongtan Hydropower   Unit I: May 2006 3 x12 97% 34.92 Hydro
    Unit II: Aug. 2005        
    Unit III: Mar. 2006        
Wuhan Power Plant Phase I Unit I: Jun. 1993 2 x 300 75% 450 Coal
    Unit II: Jan. 1994        
  Phase II Unit III: May 1997 2 x 330 75% 495 Coal
    Unite IV: Dec. 1997        
  Phase III Unit V: Oct. 2006 2 x 600 75% 900 Coal
    Unit VI: Dec. 2006        
Jingmen Co-generation   Unit I: Nov. 2014 2 x 350 100% 700 Coal
    Unit II: Oct. 2014        
Yingcheng Co-generation   Unit II: Feb. 2015 1 x 350 100% 350 Coal
Jiangxi Province            
Jinggangshan Power Plant Phase I Unit I: Dec. 2000 2 x 300 100% 600 Coal
    Unit II: Aug. 2001        
  Phase II Unit III: Nov. 2009 2 x 660 100% 1,320 Coal
    Unit IV: Dec. 2009        
Jianggongling Wind Power   24 turbines: Dec. 2014 48 100% 48 Wind
Ruijin Power Plant   Unit I: May 2008 2 x 350 100% 700 Coal
    Unit II: Aug. 2008        
Anhui Province            
Chaohu Power Plant   Unit I:  May 2008 2 x 600 60% 720 Coal
    Unit II:  Aug. 2008        
Hualiangting Hydropower Phase I Unit I: Oct. 1981 2 x 10 100% 20 Hydro
    Unit II: Nov. 1981        
  Phase II Unit III: Nov. 1987 2 x 10 100% 20 Hydro
    Unit IV: Nov. 1987        
Fujian Province            
Fuzhou Power Plant Phase I Unit I: Sep. 1988 2 x 350 100% 700 Coal
    Unit II: Dec. 1988        
  Phase II Unit III: Oct. 1999 2 x 350 100% 700 Coal
    Unit IV: Oct. 1999        
  Phase III Unit V: Jul. 2010 2 x 660 100% 660 Coal
Guangdong Province            
Shantou Power Plant Phase I Unit VI: Oct. 2011 Unit I: Jan. 1997 2 x 300 100% 600 Coal
    Unit II: Jan. 1997        
  Phase II Unit III: Oct. 2005 1 x 600 100% 600 Coal
Haimen   Unit I: Jul. 2009 2 x 1,036 100% 2,072 Coal
    Unit II: Oct. 2009        
Haimen Power   Unit I: Mar. 2013 2 x 1,036 80% 1,657.6 Coal
    Unit II: Mar. 2013        
Yunnan Province            
Diandong Energy Phase I Unit I: Feb. 2006 2 x 600 100% 1,200 Coal
    Unit II: Jul. 2006        
  Phase II Unit III: Nov. 2006 2 x 600 100% 1,200 Coal
    Unit IV: May 2007        
Yuwang Energy Phase I Unit I: Jul. 2009 2 x 600 100% 1,200 Coal
    Unit II: Feb. 2010        
Wenbishan Wind Power   20 turbines: Dec. 2014 40 100% 40 Wind
Hainan Province            
Haikou Power Plant   Unit IV: May 2000 2 x 138 91.8% 253.368 Coal
    Unit V: May 1999        
    Unit VIII: Apr. 2006 2 x 330 91.8% 605.88 Coal
    Unit IX: May 2007        
Dongfang Power Plant Phase I Unit I: Jun. 2009 2 x 350 91.8% 642.6 Coal
    Unit II: Dec. 2009        
  Phase II Unit III: May 2012 2 x 350 91.8% 642.6 Coal
    Unit IV: Dec. 2012        
Nanshan Co-generation   Unit I: Apr. 1995 2 x 50 91.8% 91.8 Gas
    Unit II: Apr. 1995        
    Unit III: Oct. 2003 2 x 16 91.8% 29.370 Gas
    Unit IV: Oct. 2003        
Gezhen Hydropower   Unit I: Nov. 2009 2 x 40 91.8% 73.40 Hydro
    Unit II: Nov. 2009        
    Unit III: Dec. 2009 2 x 1 91.8% 1.836 Hydro
    Unit IV: Dec. 2009        
Wenchang Wind Power   33 turbines: Jan. 2009 49.5 91.8% 45.441 Wind
Singapore   Unit I: Mar. 1999 1 x 600 100% 600 Oil
Tuas Power   Unit III: Nov. 2001 4 x 367.5 100% 1,470 Gas
    Unit IV: Jan. 2002        
    Unit V: Feb. 2005        
    Unit VI: Sep. 2005        
    Unit VII: Dec. 2013 405.9 100% 405.9   Gas
TMUC Phase I Feb. 2013 1 x 101 100% 101 Coal & biomass
  Phase IIA Jun. 2014 1 x 32.5 100% 32.5 Coal & biomass
2638

Plant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)    (MW) % MW  
            
Dongfang Power Plant 
Phase I Unit I: Jun. 2009 2 x 350 91.8% 642.6 Coal
   Unit II: Dec. 2009        
    Phase II Unit III: May 2012 2 x 350 91.8% 642.6 Coal
   Unit IV: Dec. 2012        
Nanshan Co-generation  Unit I: Apr. 1995 2 x 50 91.8% 91.8 Gas
   Unit II: Apr. 1995        
   Unit III: Oct. 2003 2 x 16 91.8% 29.370 Gas
   Unit IV: Oct. 2003        
Gezhen Hydropower  Unit I: Nov. 2009 2 x 40 91.8% 73.40 Hydro
   Unit II: Nov. 2009        
   Unit III: Dec. 2009 2 x 1 91.8% 1.836 Hydro
   Unit IV: Dec. 2009        
Wenchang Wind Power  34 turbines: Jan. 2009 51.5 91.8% 47.277 Wind
Dongfang Photovoltaic  Jul. 2016 12 91.8% 11.016 Solar
Guizhou Province
           
Panxian Wind Power  12 turbines: Dec. 2015 24 100% 24 Wind
Singapore
  Unit I: Mar. 1999 1 x 600 100% 600 Oil
Tuas Power  Unit III: Nov. 2001 4 x 367.5 100% 1,470 Gas
   Unit IV: Jan. 2002        
   Unit V: Feb. 2005        
   Unit VI: Sep. 2005        
   Unit VII: Dec. 2013 405.9 100% 405.9   Gas
TMUC                           Phase I Feb. 2013 1 x 101 100% 101 Coal & biomass
 Phase IIA Jun. 2014 1 x 32.5 100% 32.5 Coal & biomass
The following table presents the availability factors and the capacity factors of our coal-fired operating power plants in China for the years ended December 31, 2012, 20132014, 2015 and 2014.

Coal-fired Power Plant
 
Availability factor (%)
  
Capacity factor (%)
 
  
2012
  
2013
  
2014
  
2012
  
2013
  
2014
 
Liaoning Province                  
Dalian  98.20   97.03   97.76   48.62   50.71   54.13 
Dandong  94.96   96.77   95.89   52.08   50.79   52.14 
Yingkou  94.21   92.05   94.16   48.67   45.42   49.64 
Yingkou Co-generation  97.76   98.08   100   58.93   60.2   52.63 
Hebei Province                        
Shang’an  99.94   97.91   98.15   68.54   66.84   63.52 
Gansu Province                        
Pingliang  92.36   91.48   94.63   42.38   46.79   51.85 
Beijing Municipality                        
Beijing  93.01   95.13   94.48   62.46   59.53   54.79 
Tianjin Municipality                        
Yangliuqing  90.61   94.8   93.9   62.70   67.88   62.95 
Shanxi Province                        
Yushe  92.92   94.98   92.53   64.61   60.64   61.22 
Zuoquan  92.88   91.69   92.93   56.16   56.67   50.88 
Shandong Province                        
Dezhou  95.19   95.51   97.01   65.66   65.87   64.46 
Jining  88.84   95.74   92.03   58.78   59.43   55.56 
Weihai  100.00   94.63   95.87   65.31   64.84   65.83 
Xindian  100.00   90.94   87.15   69.51   61.92   62.83 
Rizhao II  91.43   92.58   91.27   62.65   65.26   64.23 
Zhanhua Co-generation  93.89   95.01   95.63   59.47   54.62   57.92 
Henan Province                        
Qinbei  95.51   95.12   92.85   62.80   60.47   50.92 
Jiangsu Province                        
Nantong  95.28   92.49   90.6   68.16   68.14   55.67 
Nanjing  93.95   93.82   94.45   68.07   71.21   62.52 
Taicang  93.31   98.09   99.99   69.93   74.41   65.2 
Huaiyin  89.00   90.79   91.4   61.68   67.22   58.26 
Jinling Coal-fired  95.21   89.49   88.66   76.20   72.72   64.1 
Shanghai Municipality                        
Shidongkou I  96.80   95.81   98.53   67.52   71.14   52.96 
Shidongkou II  91.82   93.42   90.15   64.20   64.83   50.71 
Chongqing Municipality                        
Luohuang  88.72   93.57   94.84   52.57   63.21   48.21 
Zhejiang Province                        
Changxing  -   -   -   -   -   - 
Yuhuan  93.08   92.76   95.45   68.64   72.07   63.22 
Hunan Province                        
Yueyang  95.21   99.99   99.97   43.55   45.02   39.27 
Jiangxi Province                        
Jinggangshan  94.74   92.59   95.03   52.42   57.69   50.5 
Fujian Province                        
Fuzhou  92.77   93.83   94.53   60.26   63.52   58.66 
Guangdong Province                        
Shantou  93.19   97.85   96.55   60.97   59.55   50.75 
Haimen  94.75   96.1   96.99   68.84   55.76   53.09 
Yunnan Province                        
Diandong  93.07   94.25   94.92   40.36   35.8   28.32 
Yuwang  96.81   93.92   95.36   47.25   43.31   34.88 
______________________________________
Note:
(1)The details of our operating power plants, construction projects and related projects as of March 31, 2015 are described below.

2016.

Coal-fired Power Plant Availability factor (%)  Capacity factor (%) 
  2014  2015  2016  2014  2015  2016 
Liaoning Province
                  
Dalian  97.76   92.95   99.86   54.13   49.04   49.91 
Dandong  95.89   93.34   97.4   52.14   49.74   47.49 
Yingkou  94.16   100   100   49.64   48.86   48.70 
Yingkou Co-generation  100   100   100   52.63   53.35   43.55 
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Coal-fired Power Plant Availability factor (%)  Capacity factor (%) 
  2014  2015  2016  2014  2015  2016 
Hebei Province
                  
Shang’an  98.15   95.50   93.18   63.52   66.74   57.50 
Gansu Province
                        
Pingliang  94.63   88.83   96.3   51.85   27.76   39.77 
Beijing Municipality
                        
Beijing  94.48   85.60   92.79   54.79   53.01   45.89 
Tianjin Municipality
                        
Yangliuqing  93.9   95.02   96.78   62.95   54.02   53.38 
Shanxi Province
                        
Yushe  92.53   93.18   94.77   61.22   53.32   53.01 
Zuoquan  92.93   90.93   87.61   50.88   47.71   46.68 
Shandong Province
                        
Dezhou  97.01   97.01   93.96   64.46   60.83   57.97 
Jining  92.03   92.03   91.35   55.56   57.58   59.22 
Weihai  95.87   97.04   93.47   65.83   64.03   65.83 
Xindian  87.15   89.12   90.10   62.83   60.08   63.07 
Rizhao II  91.27   92.22   94.08   64.23   66.91   66.34 
Zhanhua Co-generation  95.63   94.33   97.32   57.92   51.98   55.27 
Henan Province
                        
Qinbei  92.85   97.18   96.69   50.92   46.22   55.06 
Luoyang Cogeneration Power Plant  -   -   92.71   -   -   46.20 
Luoyang Yangguang Power Plant  -   -   100   -   -   67.70 
Mianchi Co-generation  -   -   100   -   -   59.04 
Jiangsu Province
                        
Nantong  90.6   91.41   
91.37
   55.67   50.15   52.99 
Nanjing  94.45   93.54   
96.92
   62.52   47.59   57.24 
Taicang  99.99   94.39   
99.84
   65.2   60.57   71.16 
Huaiyin  91.4   91.40   
89.66
   58.26   50.28   48.04 
Jinling Coal-fired  88.66   89.82   
93.85
   64.1   64.99   70.19 
Suzhou Co-generation  94.27   98.42   
96.41
   76.71   75.10   74.35 
Shanghai Municipality
                        
Shidongkou I  98.53   95.43   99.86   52.96   44.44   43.53 
Shidongkou II  90.15   92.57   92.81   50.71   51.15   55.07 
Zhejiang Province
                        
Changxing  93.9   97.69   96.5   29.82   47.03   49.18 
Yuhuan  95.45   95.53   93.64   63.22   55.43   55.58 
Chongqing Municipality
                        
Luohuang  94.84   94.44   95.58   48.21   42.23   35.16 
Hunan Province
                        
Yueyang  99.97   98.94   99.71   39.27   35.04   33.56 
Hubei Province
                        
Wuhan Power  92.17   95.36   94.54   53.06   46.53   46.84 
Jingmen Thermal Power  100   98.09   97.86   34.28   26.80   41.39 
Yingcheng Thermal Power  -   100   90.80   -   33.52   44.30 
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Coal-fired Power Plant Availability factor (%)  Capacity factor (%) 
  2014  2015  2016  2014  2015  2016 
Jiangxi Province
                  
Jinggangshan  95.03   92.92   92.19   50.5   53.47   49.55 
Ruijin Power  -   -   92.43   -   -   49.77 
Pingxiang  -   -   88.6   -   -   55.29 
Anhui Province
                        
Chaohu Power  95.03   95.50   86.29   50.5   55.62   56.42 
Fujian Province
                        
Fuzhou  94.53   91.62   99.98   58.66   45.72   36.05 
Guangdong Province
                        
Shantou  96.55   98.42   97.91   50.75   43.29   43.39 
Haimen  96.99   96.53   94.41   53.09   45.98   38.88 
Yunnan Province
                        
Diandong  94.92   98.68   98.82   28.32   19.00   15.73 
Yuwang  95.36   96.79   100   34.88   15.07   2.54 
Hainan Province
                        
Haikou  95.36   96.02   91.15   34.88   87.47   60.46 
Dongfang  94.92   92.73   94.33   28.32   74.05   60.23 
___________________         
The details of our operating power plants, construction projects and related projects as of March 31, 2017 are described below.
 
Power Plants in Heilongjiang Province
Xinhua Power Plant
Huaneng Xinhua Power Plant ("Xinhua Power Plant") is located in the city of Daqing in Heilongjiang Province. Xinhua Power Plant, including Phase I and Phase II, has an installed capacity of 530 MW and consists of one 200 MW coal-fired generating unit and one 330 MW coal-fired generating unit and which commenced operations in 1979 and 2005 respectively. We hold 70% equity interest in Xinhua Power Plant.
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The coal supply for Xinhua Power Plant is mainly obtained from Inner Mongolia Autonomous Region. Xinhua Power Plant typically stores 120,000 tons of coal on site. Xinhua Power Plant obtained 93.1% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Xinhua Power Plant in 2016 was RMB269.07 (2015: RMB291.78) per ton.
Xinhua Power Plant sells its electricity to Heilongjiang Electric Power Company.
Hegang Power Plant
Huaneng Hegang Power Plant ("Hegang Power Plant") is located in the city of Hegang in Heilongjiang Province. Hegang Power Plant, including Phases I to III, has an installed capacity of 1,200 MW and consists of two 300 MW coal-fired generating unit and one 600 MW coal-fired generating unit and which commenced operations in 1998, 1999 and 2007 respectively. We hold 64% equity interest in Xinhua Power Plant.
The coal supply for Hegang Power Plant is mainly obtained from the city of Hegang. Hegang Power Plant typically stores 120,000 tons of coal on site. Hegang Power Plant obtained 62.5% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Hegang Power Plant in 2016 was RMB317.73 (2015: RMB310.49) per ton.
Hegang Power Plant sells its electricity to Heilongjiang Electric Power Company.
Daqing Co-generation
Huaneng Daqing Co-generation Power Plant ("Daqing Co-generation") is located in the city of Daqing in Heilongjiang Province. Daqing Co-generation, including Phase I and Phase II, has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operations in 2003. We hold 100% equity interest in Daqing Co-generation.
The coal supply for Daqing Co-generation is mainly obtained from Inner Mongolia Autonomous Region. Daqing Co-generation typically stores 80,000 tons of coal on site. Daqing Co-generation obtained 88.9% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Daqing Co-generation in 2016 was RMB263.84 (2015: RMB288.24) per ton.
Daqing Co-generation sells its electricity to Heilongjiang Electric Power Company.
Yichun Co-generation
Huaneng Yichun Co-generation Power Plant ("Yichun Co-generation") is located in the city of Yichun in Heilongjiang Province. Yichun Co-generation, including Phase I and Phase II, has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operations in 2015. We hold 100% equity interest in Yichun Co-generation.
The coal supply for Yichun Co-generation is mainly obtained from the city of Hegang. Daqing Co-generation typically stores 80,000 tons of coal on site. Yichun Co-generation obtained 93.3% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yichun Co-generation in 2016 was RMB334.03 (2015: RMB334.78) per ton.
Yichun Co-generation sells its electricity to Heilongjiang Electric Power Company.
Sanjiangkou Wind Power
Huaneng Shanjiangkou Wind Power Plant ("Sanjiangkou Jiangsheng Wind Power") is located in the city of Jiamusi in Heilongjiang Province. The installed capacity of Sanjiangkou Wind Power Plant is 99 MW and consists of 66 turbines. It commenced operation in February 2010. We hold 82.85% equity interest in Sanjiangkou Wind Power Plant.
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Sanjiangkou Wind Power sells its electricity to Heilongjiang Electric Power Company.
Linjiang Jiangsheng Wind Power
Linjiang Jiangsheng Wind Power Plant ("Linjiang Jiangsheng Wind Power") is located in the city of Jiamusi in Heilongjiang Province. The installed capacity of Linjiang Jiangsheng Wind Power Plant is 99 MW and consists of 66 turbines. It commenced operation in October 2015. We hold 82.85% equity interest in Linjiang Jiangsheng Wind Power Plant.
Linjiang Jiangsheng Wind Power sells its electricity to Heilongjiang Electric Power Company.
Daqing Heping Aobao Wind Power
Daqing Heping Aobao Wind Power Plant ("Daqing Heping Aobao Wind Power") is located in the city of Jiamusi in Heilongjiang Province. Phase I of the Daqing Heping Aobao Wind Power commenced operation in December 2011, with an installed capacity of 96 MW, consisting of 32 wind power turbines of 3 MW each. Phase II of the Daqing Heping Aobao Wind Power commenced operation in May 2012, with an installed capacity of 96 MW, consisting of 32 wind power turbines of 3 MW each. Phase III of the Daqing Heping Aobao Wind Power commenced operation in December, with an installed capacity of 96 MW, consisting of 32 wind power turbines of 3 MW each. We hold 100% of the equity interest in Daqing Heping Aobao Wind Power.
Daqing Heping Aobao Wind Power sells its electricity to Heilongjiang Electric Power Company.
Power Plants in Jilin Province
Jiutai Power Plant
Huaneng Jiutai Power Plant ("Jiutai Power Plant") is located in the city of Changchun in Jilin Province. Jiutai Power Plant, including Phase I and Phase II, has an installed capacity of 1,340 MW and consists of two 670 MW coal-fired generating units which commenced operations in 2009. We hold 100% equity interest in Jiutai Power Plant.
The coal supply for Jiutai Power Plant is mainly obtained from Inner Mongolia Autonomous Region. Jiutai Power Plant typically stores 120,000 tons of coal on site. Jiutai Power Plant obtained 63% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jiutai Power Plant in 2016 was RMB260.52 (2015: RMB282.47) per ton.
Jiutai Power Plant sells its electricity to Jilin Electric Power Company.
Changchun Co-generation
Huaneng Changchun Co-generation Power Plant ("Changchun Co-generation") is located in the city of Changchun in Jilin Province. Changchun Co-generation, including Phase I and Phase II, has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operations in 2009. We hold 100% equity interest in Changchun Co-generation.
The coal supply for Changchun Co-generation is mainly obtained from Inner Mongolia Autonomous Region. Changchun Co-generation typically stores 160,000 tons of coal on site. Changchun Co-generation obtained 88% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Changchun Co-generation in 2016 was RMB288.58 (2015: RMB299.64) per ton.
Changchun Co-generation sells its electricity to Jilin Electric Power Company.
Nongan Biomass
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Huaneng Nongan Biomass Power Plant ("Nongan Biomass") is located in the city of Changchun in Jilin Province. The installed capacity of Nongan Biomass is 25 MW and consists of one 25 MW generating unit, which commenced operation in December 2011. We hold 100% equity interest in Nongan Biomass.
Nongan Biomass also uses coal to meet part of its fuel needs. Nongan Biomass typically stores 40,000 tons of coal on site. The average coal purchase price for Nongan Biomass in 2016 was RMB286.16 (2015: RMB292.82) per ton.
Nongan Biomass sells its electricity to Jilin Electric Power Company.
Linjiang Jubao Hydropower
Huaneng Linjiang Jubao Hydropower Station ("Linjiang Jubao Hydropower") is located in the city of Baishan of Jilin Province. Linjiang Jubao Hydropower consists of four 20 MW hydraulic generating units with a total installed capacity of 80 MW. In December 2011, Unit I of Linjiang Jubao Hydropower with an installed capacity of 20 MW passed a trial run. Unit I and Unit II of Linjiang Jubao Hydropower with an installed capacity of 20 MW each commenced operation in December 2011 and May 2012, respectively. Unit III and Unit IV of Linjiang Jubao Hydropower with an installed capacity of 20 MW commenced operation in May and August 2012, respectively. We hold 100% equity interest in Linjiang Jubao Hydropower.
Zhenlai Wind Power
Huaneng Zhenlai Mali Wind Power Plant ("Zhenlai Wind Power") is located in the city of Baicheng in Jilin Province. Phase I of the Zhenlai Wind Power commenced operation in June 2009, with an installed capacity of 49.5 MW, consisting of 33 wind power turbines of 1.5 MW each. Phase II of the Zhenlai Wind Power commenced operation in December 2011, with an installed capacity of 49.5 MW, consisting of 33 wind power turbines of 1.5 MW each. We hold 100% of the equity interest in Zhenlai Wind Power.
Zhenlai Wind Power sells its electricity to Jilin Electric Power Company.
Siping Wind Power
Huaneng Siping Wind Power Plant ("Siping Wind Power") is located in the city of Siping in Jilin Province. Phase I of the Siping Wind Power commenced operation in October 2010, with an installed capacity of 75 MW, consisting of 50 wind power turbines of 1.5 MW each. Phase II of the Siping Wind Power commenced operation in November 2010, with an installed capacity of 50 MW, consisting of 25 wind power turbines of 2 MW each. Phase III of the Siping Wind Power commenced operation in December 2010, with an installed capacity of 75 MW, consisting of 50 wind power turbines of 1.5 MW each. We hold 100% of the equity interest in Siping Wind Power.
Siping Wind Power sells its electricity to Jilin Electric Power Company.
Tongyu Tuanjie Wind Power
Huaneng Jilin Tongyu Tuanjie Wind Power Plant ("Tongyu Tuanjie Wind Power") is located in the city of Baicheng in Jilin Province. Tongyu Tuanjie Wind Power commenced operation in December 2015, with an installed capacity of 148 MW, consisting of 74 wind power turbines of 2 MW each. We hold 100% of the equity interest in Tongyu Tuanjie Wind Power.
Tongyu Tuanjie Wind Power sells its electricity to Jilin Electric Power Company.
Power Plants in Liaoning Province
Dalian Power Plant
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Huaneng Dalian Power Plant (“("Dalian Power Plant”Plant") is located on the outskirts of Dalian, on the coast of Bohai Bay. Dalian Power Plant, including Phase I and Phase II, has an installed capacity of 1,400 MW and consists of four 350 MW coal-fired generating units which commenced operations in 1988 and 1999 respectively. We hold 100% equity interest in Dalian Power Plant.
The coal supply for Dalian Power Plant is obtained from several coal producers located mostly in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and shipped by special 27,000 ton automatic unloading ships to the wharf at the Dalian Power Plant. The wharf is owned and maintained by the Dalian Port Authority and is capable of handling 30,000 ton vessels. Dalian Power Plant typically stores 200,000 tons of coal on site.
In 2014,2016, Dalian Power Plant obtained 84.4%98% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Dalian Power Plant in 20142016 was RMB488,89 (2013: RMB525.33)RMB461.63 (2015: RMB417.54) per ton.
Dalian Power Plant sells its electricity to Liaoning Electric Power Company.
Dandong Power Plant
Huaneng Dandong Power Plant (“("Dandong Power Plant”Plant") is located on the outskirts of the city of Dandong in Liaoning. Dandong Power Plant had originally been developed by HIPDC which, pursuant to the Reorganization Agreement, transferred all its rights and interests therein to us effective December 31, 1994. In March 1997, we began the construction of Dandong Power Plant, which comprises two 350 MW coal-fired generating units. We hold 100% equity interest in Dandong Power Plant.
The coal supply for Dandong Power Plant is obtained from several coal producers in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and shipped by barge to the Dandong port in Dandong, where it is unloaded and transported to Dandong Power Plant using special coal handling facilities. The wharf is owned and maintained by Dandong Power Plant and is capable of handling 28,000 ton vessels. Dandong Power Plant typically stores 220,000 tons of coal on site.
In 2014,2016, Dandong Power Plant obtained 37.6%25% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Dandong Power Plant in 20142016 was RMB461.38(2013: RMB483.99)RMB417.25 (2015: RMB396.52) per ton.
Dandong Power Plant sells its electricity to Liaoning Electric Power Company.
Yingkou Power Plant
Huaneng Yingkou Power Plant (“("Yingkou Power Plant”Plant") is located in Yingkou City in Liaoning Province. Yingkou Power Plant Phase I has an installed capacity of 640 MW and consists of two 320 MW supercritical coal-fired generating units which commenced operations in January and December 1996, respectively. Yingkou Power Plant Phase II has an installed capacity of 1,200MW and consists of two 600 MW coal-fired generating units which commenced operations in August and October 2007, respectively. We hold 100% equity interest in Yingkou Power Plant.
The coal supply for Yingkou Power Plant is mainly obtained from Shanxi Province. Yingkou Power Plant typically stores 400,000 tons of coal on site. In 2014,2016, Yingkou Power Plant obtained 70.6%35% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yingkou Power Plant in 20142016 was RMB482,94 (2013: RMB488.49)RMB453.18 (2015: RMB427.85) per ton.
Yingkou Power Plant sells its electricity to Liaoning Electric Power Company.
Yingkou Co-generation
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Huaneng Yingkou Co-generation Power Plant (“("Yingkou Co-generation”Co-generation") is located in Yingkou City in Liaoning Province. Yingkou Co­generationCo¬-generation Power Plant has an installed capacity of 660 MW and consists of two 330 MW generating units which commenced operation in December 2009. We hold 100% equity interest in Yingkou Co-generation Power Plant.
The coal supply for Yingkou Co-generation Power Plant is mainly obtained from Inner Mongolia Autonomous Region. Yingkou Co-generation Power Plant typically stores 140,000 tons of coal on site. In 2014,2016, Yingkou Co-generation Power Plant obtained 97.7%100% of its total consumption of coal from annual contracts and the remainder from the open marketcontracts. The average coal purchase price for Yingkou Co-generation Power Plant in 20142016 was RMB398.55 (2013: RMB393.77)RMB327.68 (2015: RMB384.98) per ton.

28
Yingkou Co-generation Power Plant sells its electricity to Liaoning Electric Power Company.
Wafangdian Wind Power
Dalian Wafangdian Wind Power Plant (“("Wafangdian Wind Power”Power") is located in Dalian City in Liaoning Province. The installed capacity of phase I of Wafangdian Wind Power Plant is 48 MW and consists of 24 turbines. It commenced operation in June 2011. We hold 100% equity interest in Wafangdian Wind Power Plant.
Wafangdian Wind Power sells its electricity to Liaoning Electric Power Company.
Suzihe Hydropower
Liaoning Suzihe Hydropower Plant (“("Suzihe Hydropower”Hydropower") is located in Liaoning Province. The installed capacity of Suzihe Hydropower Plant is 37.5 MW and consists of three 12.5 MW generating units. Unit I (12.5 MW) of Suzihe Hydropower commenced operation in August 2012. We hold 100% equity interest in Suzihe Hydropower.
Changtu Taiping Wind Power
Huaneng Liaoning Changtu Taiping Wind Power Plant (“("Changtu Taiping Wind Power”Power") is located in Liaoning Province. Phase I of the Changtu Taiping Wind Power commenced operation in November 2012, with an installed capacity of 49.5 MW, consisting of 33 wind power turbines of 1.5 MW each. We hold 100%Phase II of the equity interest in Changtu Taiping Wind Power.
Changtu Laocheng Wind Power
Huaneng Liaoning Changtu Laocheng Wing Power Plant (“Changtu Laocheng Wind Power”) is located in Liaoning Province. Changtu Laocheng Wind Power commenced operation in October 2014 , with an installed capacity of 48 MW, consisting of 24 wind power turbines of 2 MW each. We hold 100% of the equity interest in Changtu Laocheng Wind Power.
Dandong Photovoltaic
Dandong 10 MW Photovoltaic Power Plant ("Dandong Photovoltaic") is located in Liaoning Province. Dandong Photovoltaic commenced operation in May 2016, with an installed capacity of 10 MW. We hold 100% of the equity interest in Dandong Photovoltaic.
Dandong Photovoltaic sells its electricity to Liaoning Electric Power Company.
Yingkou Co-generation Photovoltaic
Yingkou Co-generation 10 MW Photovoltaic Power Plant ("Yingkou Co-generation Photovoltaic") is located in Liaoning Province. Yingkou Co-generation Photovoltaic commenced operation in June 2016, with an installed capacity of 10 MW. We hold 100% of the equity interest in Yingkou Co-generation Photovoltaic.
Yingkou Co-generation Photovoltaic sells its electricity to Liaoning Electric Power Company.
Construction Project in Liaoning Province
 Yingkou Xianrendao Co-generation Power Project.In December 2013, the project of Yingkou Xianrendao Co-generation Power Plant was approved by the Development and Reform Commission of Liaoning Province. We
46
hold 100% equity interest in this project. The project is planned to have two sets of high temperature back-pressure turbo-generating units of 50 MW each. The first set commenced operation in March 2017.
Dalian Second Cogeneration Power Plant project. In October 2014, the project of Dalian Number 2 Power Plant was approved by the Development and Reform Commission of Liaoning Province. We hold 100% equity interest in this project. The project is planned to have two sets of high temperature back-pressure turbo-generating units of 50 MW each.
each.
Power Plant in Inner Mongolia Autonomous Region
Huade Wind Power
Huaneng Huade Wind Power Plant (“("Huade Wind Power”Power") is located in Huade, Inner Mongolia Autonomous Region. Phase I of Huade Wind Power has an installed capacity of 49.5 MW and consists of 33 wind power turbines which commenced operation in 2009. Phase II of Huade Wind Power has an installed capacity of 49.5 MW and consists of 33 wind power turbines which commenced operation in June 2011. We hold 100% equity interest in Huade Wind Power Plant.
Huade Wind Power sells its electricity to Inner Mongolia Power (Group) Co., Ltd.
Power Plants in Hebei Province
Shang’anShang'an Power Plant
Huaneng Shang’anShang'an Power Plant (“Shang’an("Shang'an Power Plant”Plant") is located on the outskirts of Shijiazhuang. Shang’anShang'an Power Plant has been developed in three separate expansion phases. The Shang’anShang'an Power Plant Phase I has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operations in 1990. Shang’anShang'an Power Plant Phase II shares with the Shang’anShang'an Power Plant Phase I certain facilities, such as coal storage facilities and effluence pipes, which have been built to accommodate the requirements of plant expansions. The Shang’anShang'an Power Plant Phase II utilizes two 300330 MW coal-fired generating units, which commenced operation in 1997. The Shang’anShang'an Power Plant Phase III has an installed capacity of 1,200 MW and consists of two 600 MW supercritical coal-fired generating units which commenced operations in July and August 2008, respectively. Unit 5 of Shang’anShang'an Power Plant is the first 600MW supercritical air-cooling unit which commenced operation in the PRC. We hold 100% equity interest in Shang’anShang'an Power Plant.
The coal supply for Shang’anShang'an Power Plant is obtained from numerous coal producers in Central Shanxi Province, which is approximately 64 kilometers from Shang’anShang'an Power Plant. The coal is transported by rail from the mines to the Shang’anShang'an Power Plant. We own and maintain the coal unloading facilities which are capable of unloading 10,000 tons of coal per day. Shang’anShang'an Power Plant typically stores 300,000 tons of coal on site.
In 2014, Shang’an2016, Shang'an Power Plant obtained 88.6%86% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Shang’anShang'an Power Plant in 20142016 was RMB442.91 (2013: RMB503.93)RMB337.33 (2015: RMB319.33) per ton.

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Shang’anShang'an Power Plant sells its electricity to Hebei Electric Power Company.
Kangbao Wind Power
Huaneng Kangbao Wind Power Plant (“("Kangbao Wind Power”Power") consists of 33 wind power turbines with a total installed capacity of 49.5 MW. In January 2011, the Phase I of Kangbao Wind Power with a total generation capacity of 49.5MW completed the trial run. We hold 100% equity interest in Kangbao Wind Power.
Kangbao Wind Power sells its electricity to Beijing-Tianjin-TangguHebei Electric Power Company.
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Kangbao Xitan Photovoltaic
Kangbao Xitan Photovoltaic ("Kangbao Xitan Photovoltaic") is located in Kangbao, Zhangjiakou, Hebei. Kangbao Xitan Photovoltaic commenced operation in June 2016, with an installed capacity of 20 MW. We hold 100% equity interest in Kangbao Xitan Photovoltaic.
Kangbao Xitan Photovoltaic sells its electricity to Hebei Electric Power Company.
Construction Project in Hebei Province
Zhuolu Dabao Wind Power.  In September 2014, the project of Zhuolu Dabao Wind Power was approved by the Development and Reform Commission of Hebei Province. We hold 100% equity interest in this project. The project is planned to have an installed capacity of 48 MW consisting of 24 wind power turbines of 2 MW each.
Power Plant in Gansu Province
Pingliang Power Plant
Huaneng Pingliang Power Plant (“("Pingliang Power Plant”Plant") is located in Pingliang City of Gansu Province. Pingliang Power Plant consists of three 325 MW and one 330 MW coal-fired generating units which commenced operation in 2000, 2001 and June and November 2003 respectively. The installed capacity of Unit I, Unit II and Unit III of Pingliang Power Plant were expanded from 300 MW to 325 MW in January 2010, respectively. The installed capacity of Unit IV of Pingliang Power Plant was expanded from 300 MW to 330 MW in January 2011. Pingliang Power Plant Phase II consists of two 600 MW generating units with a total installed capacity of 1200 MW, which commenced operation in February 2010 and March 2010, respectively. We hold 65% equity interest in Pingliang Power Plant.
The coal supply for Pingliang Power Plant is obtained from local coal mines. Pingliang Power Plant typically stores 230,000 tons of coal on site. In 2014,2016, Pingliang Power Plant obtained 95.0%82% of its coal supplies from annual contracts and the remainder from the open market. The average coal purchase price for Pingliang Power Plant in 20142016 was RMB358,47 (2013: RMB360.24)RMB270.81 (2015: RMB256.44) per ton.
Pingliang Power Plant sells its electricity to Gansu Electric Power Company.
Jiuquan Wind Power
Jiuquan Wind Power Plant (“("Jiuquan Wind Power”Power") consists of three wind power plants, Ganhekou Wind Power Plant II, Qiaowan Wind Power Plant II and Qiaowan Wind Power Plant III. It has 326234 wind power turbines with a total installed capacity of 501.5 MW.1.5 MW each and 25 wind power turbines of 2 MW each. In December 2011, all threethe wind power plants completed the trial run. We hold 100% equity interest in Jiuquan Wind Power.
Jiuquan Wind Power sells its electricity to Gansu Electric Power Company.
Anbei ThirdJiuquan II Wind Power
Anbei ThirdJiuquan II Wind Power Plant (“Anbei Third("Jiuquan II Wind Power ”)Power") is located in Gansu Province. PartZone A of this plant commenced operation in December 2014, with an installed capacity of 200 MW in operating, consisting of 100 wind power turbines of 2 MW each. Zone B of this plant commenced operation in June 2015, with an installed capacity of 200 MW in operating, consisting of 100 wind power turbines of 2 MW each. We hold 100% equity interest in Anbei ThirdJiuquan II Wind Power.
Jiuquan II Wind Power sells its electricity to Gansu Electric Power Company.
Construction Projects in Gansu ProvinceYumen Wind Power
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Anbei Third
Yumen Wind Power Plant . Anbei("Yumen Wind Power Project was approved by China’s National DevelopmentPower") is located in Gansu Province. This plant commenced operation in June 2015, with an installed capacity of 148.5 MW, consisting of 67 wind power turbines of 1.5 MW each and Reform Commission in September 2012.24 wind power turbines of 2 MW each. We hold 100% equity interest in the AnbeiYumen Wind Power.
Yumen Wind Power Project. Thesells its electricity to Gansu Electric Power Company.
Yigang Wind Power
Yigang Wind Power ("Yigang Wind Power") is located in Gansu Province. This plant is planned to havecommenced operation in December 2015, with an installed capacity of 400192 MW, consisting of 20096 wind power turbines of 2MW each, among which, 100 wind power turbines have commenced operation in December 2014.
482 MW Project of Beiyi Wind Power Plant.  In September 2011, the Beiyi Wind Power Plant in Yumen Bridge Bay was approved by China’s Nantional Development and Reform Commission.each. We hold 100% equity interest in the plant. The plant is plannedYigang Wind Power.
Yigang Wind Power sells its electricity to have an installed capacity of 48 MW, consisting of 16 wind power turbines of 3MW.
Gansu Electric Power Company.
Power Plant in Beijing Municipality
Beijing Co-generation
Huaneng Beijing Co-generation Power Plant (“("Beijing Co-generation”Co-generation") is located in Beijing Municipality. Beijing Co-generation has an installed capacity of 845 MW and consists of two 165 MW generating units, two 220 MW generating units and one 75 MW generating units which commenced operation in January 1998, December 1998, June 1999 and April 2004, respectively. We hold 41% equity interest in Beijing Co­generationCo-generation and believe we exercise effective control over Beijing Co-generation.
The coal supply for Beijing Co-generation is mainly obtained from Inner Mongolia Autonomous Region. Beijing Co-generation typically stores 165,000 tons of coal on site. In 2014,2016, Beijing Co-generation obtained 89.5%100% of its total consumption of coal from annual contracts and the remainder from the open market.contracts. The average coal purchase price for Beijing Co-generation in 20142016 was RMB501.97 (2013: RMB551.32)RMB434.53 (2015: RMB422.39) per ton.

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Beijing Co-generation sells its electricity to North ChinaBeijing Electric Power Company.
Beijing Co-generation CCGT
Beijing Co-generation CCGT consists of one set of “two"two on one”one" F-grade gas and steam combined cycle generating units with a power generation capacity of 923.4 MW, heat supply capacity of 650 MW and heat supply area of approximately 13,000,000 square metres.meters. High-standard denitrification, noise reduction, water treatment and other environmental protection facilities were constructed concurrently. In December 2011, Beijing Co-generation CCGT completed its trial run. Beijing Co-generation CCGT sells its electricity to North China Electric Company.
Being the first project commencing construction among the four major co-generation centers in Beijing, Beijing Co-generation CCGT firstly introduced the most efficient world-class F-grade gas turbine in the PRC, thus setting a new record of the maximum heat supply capacity, minimum power consumption for power generation and highest annual thermal efficiency for the same type of generating units in the PRC and attaining a leading and international class design standard in the PRC.
Construction Project in Beijing Municipality
Beijing Co-generation Phase III Project.  In March 2015, the project of Beijing Co-generation Phase III was approved by the Development and Reform Commission of Beijing Municipality. We hold 41% equity interest in this project. The project is planned to have two sets of F-grade gas-steam combined-cycle generators with total capacity of 998 MW.
Power Plant in Tianjin Municipality
Yangliuqing Co-generation
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Tianjin Huaneng Yangliuqing Co-generation Power Plant (“("Yangliuqing Co-generation”Co-generation") is located in Tianjin Municipality. Yangliuqing Co-generation has an installed capacity of 1,200 MW and consists of four 300 MW coal-fired co-generation units which commenced operation in December 1998, September 1999, December 2006 and May 2007, respectively. We hold 55% equity interest in Yangliuqing Co-generation.
The coal supply for Yangliuqing Co-generationis mainly obtained from Shanxi Province and Inner Mongolia Autonomous Region. Yangliuqing Co-generation typically stores 300,000 tons of coal on site. In 2014,2016, Yangliuqing Co-generation obtained 88.0%62% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yangliuqing Co-generation in 20142016 was RMB458,42 (2013: RMB502.55)RMB404.07 (2015: RMB369.26) per ton.
Yangliuqing Co-generation sells its electricity to North ChinaTianjin Electric Company.
Lingang Co-generation CCGT
Lingang Co-generation CCGT is located in Tianjin Municipality. The first set of generating units of Lingang Co-generation CCGT commenced operation in December 2014, with an installed capacity of 463 KW. We hold 100% equity interest in the Lingang Co-generation CCGT. The gas supply for Lingang Co-generation CCGT is transported through the pipeline of “Shannxi-Gansu-Ningxia"Shaanxi-Gansu-Ningxia Transport Project.”  
"
Lingang Co-generation CCGT sells its electricity to North ChinaTianjin Electric Company.
Power Plant in Shanxi Province
Yushe Power Plant
Huaneng Yushe Power Plant (“("Yushe Power Plant”Plant") is located in Yushe County of Shanxi Province. Yushe Power Plant Phase I has an installed capacity of 200 MW and consists of two 100 MW coal-fired generating units which commenced operations in August and December 1994, respectively. Two 300 MW coal-fired generating units of Yushe Power Plant Phase II commenced operations in October and November 2004, respectively. Yushe Power Plant Phase I was shut down in 2011. We hold 60% equity interest in Yushe Power Plant.
The coal supply for Yushe Power Plant is obtained from several coal producers located mostly in Shanxi Province. Yushe Power Plant typically stores 500,000 tons of coal on site. In 2014,2016, Yushe Power Plant obtained approximately 31.7%17% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yushe Power Plant in 20142016 was RMB 273.51 (2013: RMB328.53)RMB252.95 (2015: RMB194.96) per ton.
Yushe Power Plant sells its electricity to Shanxi Electric Power Company.
Zuoquan Power Plant
Shanxi Huaneng Zuoquan Power Plant (“("Zuoquan Power Plant”Plant") is located in Zuoquan County of Shanxi Province. Zuoquan Power Plant has an installed capacity of 1,346 MW and consists of two 673 MW coal-fired generating units which commenced operations in December 2011 and January 2012, respectively. We hold 80% equity interest in Zuoquan Power Plant.
Zuoquan Power Plant typically stores 200,000 tons of coal on site. In 2014,2016, Zuoquan Power Plant obtained approximately 11.3%3% of its total consumption of coal from annual contracts and the remainders from the open market. The average coal purchase price for Zuoquan Power Plant in 20142016 was RMB341.60 (2013: RMB396.58)RMB266.31 (2015: RMB256.99) per ton.
Zuoquan Power Plant sells its electricity to Shanxi Electric Power Company.

Dongshan Combined Cycle Gas Turbine Power Plant
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Construction Project in Shanxi Province
Taiyuan Dongshan 2×F Class Co-generation Power Project. The Taiyuan Dongshan 2×F Class Co-generationCombined Cycle Gas Turbine Power Project was approved by the Development and Reform Commission("Dongshan CCGT") is located at Taiyuan City of Shanxi ProvinceProvince. Dongshan CCGT commenced operation in May 2014. We hold 100% equity interest in the project. The project is planned to haveOctober 2015 with an installed capacity of 859 KW, consisting of one 2×F Class gas-steam combined cycle co-generating unit. We hold 100% equity interest in the plant.
Dongshan CCGT sells its electricity to Shanxi Electric Power Company.
Power Plants in Shandong Province
Dezhou Power Plant
Huaneng Dezhou Power Plant (“("Dezhou Power Plant”Plant") is located in Dezhou City, near the border between Shandong and Hebei Provinces, close to an industrial zone that is an important user of electric power for industrial and commercial purposes. Dezhou Power Plant is comprised of three phases, with Phase I consisting of one 320MW and one 330MW coal-fired generating units, Phase II consisting of two 300 MWone 330MW and one 320MW coal-fired generating units, and Phase III consisting of two 700 MW coal-fired generating units. The installed capacity of Unit IV was upgraded from 300 MW to 320 MW in January 2009. We hold 100% equity interest in Dezhou Power Plant.
Dezhou Power Plant is approximately 200 km from Taiyuan, Shanxi Province, the source of the plant’splant's coal supply. The plant is located on the Taiyuan-Shijiazhuang-Dezhou rail line, giving it access to transportation facilities for coal. Dezhou Power Plant typically stores 400,000 tons of coal on site. In 2014,2016, Dezhou Power Plant obtained approximately 73.2%61% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Dezhou Power Plant in 20142016 was RMB497.30 (2013: RMB555.47)RMB387.99 (2015: RMB370.37) per ton. The plant is connected to the main trunk rail line at Dezhou by a dedicated 3.5 km spur line owned by us.
Dezhou Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Jining Power Plant
Huaneng Jining Power Plant (“("Jining Power Plant”Plant") is located in Jining City, near the Jining load center and near numerous coal mines. Yanzhou coal mine, which is adjacent to the plant, alone has annual production of approximately 20 million tons. Jining Power Plant typically stores 100,000 tons of coal on site.
Jining Power Plant currently consists of two coal-fired generating units, with an aggregate installed capacity of 270 MW. In addition, Jining Power Plant (Co-generation) has an installed capacity of 700 MW and consists of two 350 MW generating units which commenced operation in November and December 2009, respectively. We hold 100% equity interest in Jining Power Plant.
In 2014,2016, Jining Power Plant obtained approximately 33.4%44% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jining Power Plant in 20142016 was RMB482.55 (2013: RMB533.71)RMB428.63 (2015: RMB370.51) per ton.
Jining Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Xindian Power Plant
Huaneng Xindian Power Plant (“("Xindian Power Plant”Plant") is located in Zibo City of Shandong Province. Xindian Power Plant has an installed capacity of 450 MW and consists of two 225 MW coal-fired generating units which commenced operations in December 2001 and January 2002, respectively, and were shut down in September 2009. Xindian Power Plant Phase III Expansion consists of two 300 MW generating units with a total installed capacity of 600 MW, which were put into operation in September and November 2006, respectively. We hold 95% equity interest in Xindian Power Plant.
Plant Phase III.
The coal supply for Xindian Power Plant is obtained from several coal producers located mostly in Shanxi Province. Xindian Power Plant typically stores 250,000 tons of coal on site. In 2014,2016, Xindian Power Plant obtained 45.6%
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7% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Xindian Power Plant in 20142016 was RMB491.23 (2013: RMB542.98)RMB437.49 (2015: RMB372.93) per ton.
Xindian Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Weihai Power Plant
Huaneng Weihai Power Plant (“("Weihai Power Plant”Plant") is located approximately 16 km southeast of Weihai City, on the shore of the Bohai Gulf. Its location provides access to cooling water for operations and transportation of coal as well as ash and slag disposal facilities. We hold 60% equity interest in Weihai Power Plant, the remaining 40% interest of which is owned by Weihai Power Development Bureau (“WPDB”("WPDB").
Weihai Power Plant Phase I consists of two 125 MW generating units (Units I and II), and Phase II consists of two 320 MW generating units (Units III and IV). Unit I began commercial operation in May 1994 and was shut down in December 2008, and Unit

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II began commercial operation in January 1995 and was shut down in November 2008. Unit III and Unit IV commenced operation in March and November 1998, respectively. Each of the Units III and IV was upgraded from 300 MW to 320 MW in January 2009. Weihai Power Plant Phase III consists of two 680 MW generating units which commenced operations in December 2012. The coal supply for Weihai Power Plant is obtained from Shanxi Province and Inner Mongolia. Weihai Power Plant typically stores 160,000 tons of coal on site. In 2014,2016, Weihai Power Plant obtained approximately 19.0%8% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Weihai Power Plant in 20142016 was RMB496.83 (2013: RMB535.57)RMB478.06 (2015: RMB419.15) per ton.
Weihai Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Rizhao Power Plant
Huaneng Rizhao Power Plant (“("Rizhao Power Plant”Plant") is located in Rizhao City of Shandong Province. Rizhao Power Plant currently has an aggregate installed capacity of 2,060 MW. Rizhao Power Plant Phase I has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which both commenced operations in April 2000. We hold 44%88.8% equity interests in Phase I of Rizhao Power Plant.
We hold 100% equity interest in Phase II of Rizhao Power Plant, which commenced operation in December 2008 and consists of two 680 MW supercritical coal-fired generating units. The coal supply for Phase II of Rizhao Power Plant is obtained from Shanxi Province. Phase II of Rizhao Power Plant typically stores 200,000217,800 tons of coal on site. In 2014,2016, Phase II of Rizhao Power Plant obtained 3.43%0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Phase II of Rizhao Power Plant in 20142016 was RMB538.31 (2013: RMB570.52)RMB467.33 (2015: RMB456.98) per ton.
Rizhao Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Zhanhua Co-generation
Shandong Zhanhua Co-generation Limited Company (“("Zhanhua Co-generation”Co-generation") is located in Zhanhua City of Shandong Province. Zhanhua Co-generation currently has an aggregate installed capacity of 330 MW, consisting of two generating units which commenced operations in July 2005. We hold 100% equity interest in Zhanhua Co-generation.
The coal supply for Zhanhua Co-generation is mainly obtained from Inner Mongolia Autonomous Region. Zhanhua Co-generation typically stores 90,000 tons of coal on site. In 2014,2016, Zhanhua Co-generation obtained 58.0%6% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Zhanhua Co-generation in 20142016 was RMB434.15 (2013: RMB490.48 )RMB405.46 (2015: RMB334.29) per ton.
Zhanhua Co-generation sells its electricity to State Grid Shandong Electric Power Company.
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Baiyanghe Power Plant
Huaneng Shandong Zibo Baiyanghe Power Plant ("Baiyanghe Power Plant") is located in the city of Zibo in Shandong Province. Baiyanghe Power Plant currently has an aggregate installed capacity of 890 MW. Baiyanghe Power Plant Phase I has an installed capacity of 290 MW and consists of two 145 MW coal-fired generating units which commenced operations in October 2003. Baiyanghe Power Plant Phase II has an installed capacity of 600 MW and consists of two 300 MW coal-fired generating units which commenced operations in December 2009. We hold 80% equity interests in Baiyanghe Power Plant.
The coal supply for Baiyanghe Power Plant is obtained from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Baiyanghe Power Plant typically stores 125,300 tons of coal on site. In 2016, Baiyanghe Power Plant obtained 21.98% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Baiyanghe Power Plant in 2016 was RMB425.78 (2015: RMB362.90) per ton.
Baiyanghe Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Jiaxiang Power Plant
Huaneng Jiaxiang Power Plant ("Jiaxiang Power Plant") is located in the city of Jining in Shandong Province. Jiaxiang Power Plant currently has an aggregate installed capacity of 660 MW which consists of two 330 MW coal-fired generating units which commenced operations in September 1999 and January 2003, respectively. We hold 40% equity interests in Jiaxiang Power Plant.
The coal supply for Jiaxiang Power Plant is obtained from several coal producers located in the Shandong Province. Jiaxiang Power Plant typically stores 115,300 tons of coal on site. In 2016, Jiaxiang Power Plant obtained 97.65% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jiaxiang Power Plant in 2016 was RMB378.87 (2015: RMB348.56) per ton.
Jiaxiang Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Jining Co-generation
Huaneng Jining Co-generation Power Plant ("Jining Co-generation") is located in the city of Jining in Shandong Province. Jining Co-generation currently has an aggregate installed capacity of 60 MW which consists of two 30 MW coal-fired generating units which commenced operations in April and  July 2004, respectively. We hold 40% equity interests in Jining Co-generation.
The coal supply for Jining Co-generation is obtained from several coal producers located in the Shandong Province. Jining Co-generation typically stores 10,600 tons of coal on site. In 2016, Jining Co-generation obtained 67.81% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jining Co-generation in 2016 was RMB353.48 (2015: RMB282.30) per ton.
Jining Co-generation sells its electricity to State Grid Shandong Electric Power Company.
Qufu Co-generation
Huaneng Qufu Shengcheng Co-generation Power Plant ("Qufu Co-generation") is located in the city of Jining in Shandong Province. Qufu Co-generation currently has an aggregate installed capacity of 450 MW which consists of one 225 MW coal-fired generating unit which commenced operations in February 2009 and one 225 MW coal-fired generating unit which commenced operations in September 2009. We hold 40% equity interests in Qufu Co-generation.
The coal supply for Qufu Co-generation is obtained from several coal producers located in the Shandong Province. Qufu Co-generation typically stores 34,100 tons of coal on site. In 2016, Qufu Co-generation obtained
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95.98% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Qufu Co-generation in 2016 was RMB396.87 (2015: RMB344.91) per ton.
Qufu Co-generation sells its electricity to State Grid Shandong Electric Power Company.
Huangtai Power Plant
Huaneng Jinan Huangtai Power Plant ("Huangtai Power Plant") is located in the city of Jinan in Shandong Province. Huangtai Power Plant currently has an aggregate installed capacity of 680 MW which consists of one 330 MW coal-fired generating unit which commenced operations in November 1987 and one 350 MW coal-fired generating unit which commenced operations in January 2011. We hold 72% equity interests in Huangtai Power Plant.
The coal supply for Huangtai Power Plant is obtained from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Huangtai Power Plant typically stores 155,700 tons of coal on site. In 2016, Huangtai Power Plant obtained 33.11% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Huangtai Power Plant in 2016 was RMB416.26 (2015: RMB366.43) per ton.
Huangtai Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Yantai Power Plant
Huaneng Yantai Power Plant ("Yantai Power Plant") is located in the city of Yantai in Shandong Province. Yantai Power Plant currently has an aggregate installed capacity of 590 MW which consists of one 110 MW and three 160 MW coal-fired generating units. The 110 MW unit commenced operations in April 1996, and the three 160 MW units commenced operation in October 2005, December 2005 and October 2006 respectively. We hold 80% equity interest in Yantai Power Plant.
The coal supply for Yantai Power Plant is obtained from Shanxi Province, Inner Mongolia Autonomous Region and partially imported coal. Yantai Power Plant typically stores 176,100 tons of coal on site. In 2016, Yantai Power Plant obtained 63.20% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yantai Power Plant in 2016 was RMB456.69 (2015: RMB395.46) per ton.
Yantai Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Linyi Power Plant
Huaneng Linyi Power Plant ("Linyi Power Plant") is located in the city of Linyi in Shandong Province. Linyi Power Plant currently has an aggregate installed capacity of 1,260 MW which consists of four 140 MW and two 350 MW coal-fired generating units. The 350 MW units commenced operations in December 2012 and October 2013, respectively, and the four 140 MW units commenced operation in December 1997, April 2003, September 2003 and April 2005, respectively. We hold 60% equity interest in Linyi Power Plant.
The coal supply for Linyi Power Plant is obtained from from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Linyi Power Plant typically stores 249,000 tons of coal on site. In 2016, Linyi Power Plant obtained all of its total consumption of coal from the open market. The average coal purchase price for Linyi Power Plant in 2016 was RMB490.55 (2015: RMB416.64) per ton.
Linyi Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Jining Yunhe Power Plant
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Huaneng Jining Yunhe Power Plant ("Jining Yunhe Power Plant") is located in the city of Jining in Shandong Province. Jining Yunhe Power Plant currently has an aggregate installed capacity of 1,240 MW which consists of four 145 MW and two 330 MW coal-fired generating units. The 330 MW units commenced operations in March and September 2006, respectively, and the four 145 MW units commenced operation in July 2000, November 2000, September 2003 and February 2004, respectively. We hold 78.68% equity interest in Jining Yunhe Power Plant.
The coal supply for Jining Yunhe Power Plant is obtained from from several coal producers located in the Shandong Province. Jining Yunhe Power Plant typically stores 50,900 tons of coal on site. In 2016, Jining Yunhe Power Plant obtained 86.32% of its total consumption of coal from annual contracts and the remainder from the open market from the open market. The average coal purchase price for Jining Yunhe Power Plant in 2016 was RMB413.60 (2015: RMB353.08) per ton.
Jining Yunhe Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Liaocheng Co-generation
Huaneng Liaocheng Co-generation Power Plant ("Liaocheng Co-generation") is located in the city of Liaocheng in Shandong Province. Liaocheng Co-generation currently has an aggregate installed capacity of 660 MW which consists of two 330 MW coal-fired generating unit which commenced operations in January and September 2006, respectively. We hold 60% equity interests in Liaocheng Co-generation.
The coal supply for Liaocheng Co-generation is obtained from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Liaogcheng Co-generation typically stores 141,300 tons of coal on site. In 2016, Liaogcheng Co-generation obtained 14.13% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Liaogcheng Co-generation in 2016 was RMB405.01 (2015: RMB355.97) per ton.
Liaogcheng Co-generation sells its electricity to State Grid Shandong Electric Power Company.
Taian Power Plant
Huaneng Taian Zhongtai Power Plant ("Taian Power Plant") is located in the city of Taian in Shandong Province. Taian Power Plant currently has an aggregate installed capacity of 300 MW which consists of two 150 MW coal-fired generating units, which commenced operations in May and December 2007, respectively. We hold 80% equity interest in Taian Power Plant.
The coal supply for Taian Power Plant is obtained from from several coal producers located in the Shandong and Shanxi. Taian Power Plant typically stores103,600 tons of coal on site. In 2016, Taian Power Plant obtained 27.66% of its total consumption of coal from annual contracts and the remainder from the open market from the open market. The average coal purchase price for Taian Power Plant in 2016 was RMB347.60 (2015: RMB283.63) per ton.
Taian Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Laiwu Power Plant
Huaneng Laiwu Power Plant ("Laiwu Power Plant") is located in the city of Laiwu in Shandong Province. Laiwu Power Plant currently has an aggregate installed capacity of 2,000 MW which consists of two 1,000 MW coal-fired generating units, which commenced operations in December 2015 and November 2016, respectively. We hold 64% equity interest in Laiwu Power Plant.
The coal supply for Laiwu Power Plant is obtained from from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Laiwu Power Plant typically stores 246,600 tons of coal on site. In 2016, Laiwu Power Plant obtained 14.24% of its total consumption of coal
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from annual contracts and the remainder from the open market from the open market. The average coal purchase price for Laiwu Power Plant in 2016 was RMB460.61 (2015: RMB362.41) per ton.
Laiwu Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Muping Wind Power
Muping Wind Power Plant ("Muping Wind Power") is located in the city of Yantai in Shandong Province. Muping Wind Power Plant consists of 28 wind power turbines of 1.5 MW each. We hold 80% equity interest in Muping Wind Power.
Muping Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Penglai Wind Power
Huaneng Penglai Daliuhang Wind Power Plant ("Penglai Wind Power") is located in the city of Yantai in Shandong Province. Penglai Wind Power Plant consists of 48 wind power turbines of 2 MW each and 2 wind power turbines of 1.8 MW each. We hold 80% equity interest in Penglai Wind Power.
Penglai Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Rushan Wind Power
Huaneng Rushan Wind Power Plant ("Rushan Wind Power") is located in the city of Weihai in Shandong Province. Rushan Wind Power Plant consists of 28 wind power turbines of 1.5 MW each. We hold 80% equity interest in Rushan Wind Power.
Rushan Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Changdao Wind Power
Huaneng Changdao Wind Power Plant ("Changdao Wind Power") is located in the city of Yantai in Shandong Province. Changdao Wind Power Plant consists of 14 wind power turbines of 0.6 MW each, 11 wind power turbines of 0.75 MW each and 3 wind power turbines of 1.3 MW each. We hold 48% equity interest in Changdao Wind Power.
Changdao Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Rongcheng Wind Power
Huaneng Rongcheng Wind Power Plant ("Rongcheng Wind Power") is located in the city of Weihai in Shandong Province. Rongcheng Wind Power Plant consists of 10 wind power turbines of 1.5 MW each. We hold 48% equity interest in Rongcheng Wind Power.
Rongcheng Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Dongying Wind Power
Huaneng Dongying Wind Power Plant ("Dongying Wind Power") is located in the city of Dongying in Shandong Province. Dongying Wind Power Plant consists of 32 wind power turbines of 1.5 MW each. We hold 56% equity interest in Dongying Wind Power.
Dongying Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Boshan Photovoltaic
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Boshan Photovoltaic Power Plant ("Boshan Photovoltaic") is located in Zibo City. Boshan Photovoltaic commenced its operation in May 2016 and has an installed capacity of 12 MW. We hold 80% equity interest in Boshan Photovoltaic.
Boshan Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Gaozhuang Photovoltaic
Gaozhuang Photovoltaic Power Plant ("Gaozhuang Photovoltaic") is located in Laiwu City. Gaozhuang Photovoltaic commenced its operation in May 2016 and has an installed capacity of 20 MW. We hold 80% equity interest in Gaozhuang Photovoltaic.
Gaozhuang Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Jining Co-generation Photovoltaic.
Jining Co-generation Photovoltaic Project ("Jining Co-generation Photovoltaic") is located in Jining City. The project commenced its operation in February 2017 and has an installed capacity of 20 MW. We hold 80% equity interest in this project.
Jining Co-generation Photovlatic sells its electricity to State Grid Shandong Electric Power Company.
Construction Project in Shandong Province
Yantai Bajiao "Bigger units over Small Projects". In April 2014, Yantai Bajiao "Prioritizing Mega Projects over Small Projects" Power Plant project was approved by the NDRC. The project is planned to have an installed capacity of 1,340 MW, including two sets of ultra-supercritical coal-fired generating units of 670 MW each. We hold 80% equity interest in this project.
Laiwu Niuquan Photovoltaic Project. In June 2015, Laiwu Niuquan Photovoltaic Project was approved by the NDRC of Laiwu Municipality. The project is planned to have an installed capacity of 20 MW. We hold 80% equity interest in this project.
Power Plants and Projects in Henan Province
Qinbei Power Plant
Huaneng Qinbei Power Plant (“("Qinbei Power Plant”Plant") is located in Jiyuan City of Henan Province. Its installed capacity is 2,400 MW which consists of four 600 MW supercritical coal-fired generating units. Two units commenced operations in November and December 2004, and the other two units commenced operation in November 2007. In March 2012 and February 2013, two 1,000 MW domestic ultra-supercritical coal-fired generating units of the Phase III of Qinbei Power Plant commenced operation, respectively. We hold 60% equity interest in Qinbei Power Plant.
The coal supply for Qinbei Power Plant is obtained from Shanxi Province. Qinbei Power Plant typically stores 270,000 tons of coal on site. In 2014,2016, Qinbei Power Plant obtained 79.9%64% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Qinbei Power Plant in 20142016 was RMB495.59 (2013: RMB562.58)RMB401.89 (2015: RMB352.53) per ton.
Qinbei Power Plant sells its electricity to Henan Electric Power Company.
Construction Project in Henan Province
Mianchi CogenerationLuoyang Co-generation Power Plant project. In September 2012, Henan Huaneng Mianchi Cogeneration
Luoyang Co-generation Power Plant project was approved by the National Development and Reform Commission.("Luoyang Co-generation") is located at Luoyang City of Henan Province. The project is planned to consisthas an installed capacity of 700 MW, consisting of two sets of 350MW coal-fired cogeneration units.
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generation units, which commenced operation in May and June 2015, respectively. We hold 51%80% equity interest in this project.plant.
The coal supply for Luoyang Co-generation is obtained from Henan and Shaanxi. Luoyang Co-generation typically stores 120,000 tons of coal on site. In 2016, Luoyang Co-generation obtained 36% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Luoyang Co-generation in 2016 was RMB434.9 (2015: RMB 307.29) per ton.
Luoyang Co-generation sells its electricity to Henan Electric Power Company.
Luoyang Yangguang Power Plant

Luoyang Yangguang Power Plant ("Luoyang Yangguang") is located at Luoyang City of Henan Province. The project has an installed capacity of 270 MW, consisting of two sets of 135 MW coal-fired generation units, which commenced operation in June and October 2006, respectively. We hold 80% equity interest in this plant.

Luoyang Yangguang sells its electricity to Henan Electric Power Company.
 
Luoyang CogenerationMianchi Co-generation
Mianchi Co-generation Power Plant project. ("Mianchi Co-generation") is located in Mianchi City of Henan Province. The project is planned to consisthas an installed capacity of 700 MW, consisting of two sets of 350MW coal-fired generation units.units, which commenced operation in December 2016. We hold 51%60% equity interest in this project.plant.
The coal supply for Mianchi Co-generation is obtained from Yima Coal Group which has mining operations in Henan, Qinghai, Shanxi, Tibet and Inner Mongolia. Mianchi Co-generation typically stores 20,000 tons of coal on site. In 2016, Mianchi Co-generation obtained 100% of its total consumption of coal from annual contracts. The average coal purchase price for Luoyang Co-generation Power Plant in 2016 was RMB450. 00 per ton.
Mianchi Co-generation sells its electricity to Henan Electric Power Company.
Zhumadian Guoji Wind Power
Zhumadian Guoji Wind Power ("Guoji Wind Power") is located in Zhumadian City of Henan Province. The project has an installed capacity of 32 MW, consisting of sixteen 2MW wind turbines, which commenced operation in December 2016. We hold 90% equity interest in this plant.
Guoji Wind Power sells its electricity to Henan Electric Power Company.
Construction Project in Henan Province
Qinbei Photovoltaic Project. In October 2014, Qinbei Photovoltaic Project was approved by the NDRC of Jiyuan Municipality. The project is planned to have an installed capacity of 20MW. We hold 100% euiqty interest in this project.
Power Plants and Projects in Jiangsu Province
Nantong Power Plant

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Huaneng Nantong Power Plant (“("Nantong Power Plant”Plant") is located in Nantong City. Nantong Power Plant, including Phase I, Phase II and Phase III, has an installed capacity of 2,454 MW and consists of two 352 MW, two 350 MW and one 1,050 MW coal-fired generating units  which commenced operations in 1989, 1990 1999 and 2014. We hold 100% equity interest in Phase I and Phase II of Nantong Power Plant and 35% equity interest in Phase III of Nantong Power Plant.
The coal supply for Nantong Power Plant is obtained from several coal producers located mostly in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and then shipped to the Nantong Power Plant. Nantong Power Plant typically stores 300,000 tons of coal on site.
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In 2014,2016, Nantong Power Plant obtained 60.7%16% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Nantong Power Plant in 20142016 was RMB506.88 (2013: RMB545.84)RMB418.91 (2015: RMB415.40) per ton.
Nantong Power Plant sells its electricity to Jiangsu Electric Power Company.
Nanjing Power Plant
Huaneng Nanjing Power Plant (“("Nanjing Power Plant”Plant") has an installed capacity of 640 MW consisting of two 320 MW coal-fired generating units which commenced operations in March and October 1994, respectively. We hold 100% equity interest in Nanjing Power Plant.
The coal supply for the Nanjing Power Plant is obtained from several coal producers located in the Shanxi and Anhui Provinces. The coal is transported by rail from the mines to Yuxikou Port and Pukou Port and shipped to the plant’splant's own wharf facilities. The wharf is capable of handling 6,000 ton vessels. Nanjing Power Plant typically stores 120,000 tons of coal on site and consumes 5,000 tons of coal per day when operating at maximum generating capacity.
In 2014,2016, Nanjing Power Plant obtained approximately 50.8%17% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Nanjing Power Plant in 20142016 was RMB555.62 (2013: RMB614.05)RMB469.51 (2015: RMB440.36) per ton.
Nanjing Power Plant sells its electricity to Jiangsu Electric Power Company.
Taicang Power Plant
Huaneng Taicang Power Plant (“("Taicang Power Plant”Plant") is located in the vicinity of Suzhou, Wuxi and Changzhou, which is the most affluent area in Jiangsu Province. Taicang Power Plant is an ancillary facility of the China-Singapore Suzhou Industrial Park. Taicang Power Plant Phase I consists of two 300 MW coal-fired generating units, which commenced operations in December 1999 and April 2000 respectively. Taicang Phase II Expansion consists of two 600 MW coal-fired generating units, which commenced operations in January and February 2006, respectively. In April 2008, the installed capacities of the four units of Taicang Power Plant were upgraded to 320 MW, 320 MW, 630 MW and 630 MW, respectively, which increased the total installed capacity of Taicang Power Plant to 1,900 MW. We hold 75% equity interest in Taicang Power Plant.
The coal supply for Taicang Power Plant is primarily from Shenhua in Inner Mongolia and Datong in Shanxi Province. Taicang Power Plant typically stores 350,000 tons of coal on site. In 2014,2016, Taicang Power Plant obtained approximately 25.8%24% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Taicang Power Plant in 20142016 was RMB491.01 (2013: RMB505.13)RMB455.26 (2015: RMB395.68) per ton.
Taicang Power Plant sells its electricity to Jiangsu Electric Power Company.
Huaiyin Power Plant
Huaneng Huaiyin Power Plant (“("Huaiyin Power Plant”Plant") is located in the Center of the Northern Jiangsu Power Grid. The plant’splant's two 220 MW coal-fired generating units commenced operation in November 1993 and August 1994, respectively. In order to reduce energy consumption and increase capacity, one generating unit of Huaiyin Power Plant was upgraded in October 2001, which increased the maximum generating capacity of that unit to 220 MW. In 2002, upgrading of the second generating unit was completed, and the actual generating capacity of Huaiyin Power Plant is 440 MW. The other two 330 MW coal-fired generating units of Huaiyin Power Plant Phase II Expansion commenced operations in January and March 2005, respectively. Huaiyin Power Plant Phase III consists of two 330 MW coal-fired generating units, and which were put into operation in May and September 2006, respectively. We hold 100% equity interest in Phase I and 63.64% equity interest in Phase II and Phase III of
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Huaiyin Power Plant. Unit I and Unit II of Huaiyin Power Plant were shut down in December 2007 and January 2009, respectively.
The coal supply for the Huaiyin Power Plant is primarily from Anhui Province, Henan Province and Shanxi Province. Huaiyin Power Plant typically stores 180,000 tons of coal on site. In 2014,2016, Huaiyin Power Plant obtained approximately 53.4%29% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Huaiyin Power Plant in 20142016 was RMB556.52 (2013: RMB590.54)RMB460.77 (2015: RM440.49) per ton.
Huaiyin Power Plant sells its electricity to Jiangsu Electric Power Company.

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Jinling Power Plant
Huaneng Nanjing Jinling Power Plant (“("Jinling Power Plant”Plant") is located in Nanjing, Jiangsu. Jinling Power Plant (CCGT) consists of two 390 MW gas-fired generating units, which commenced operation in December 2006 and March 2007, respectively. We hold 60% equity interest in Jinling Power Plant (CCGT). The gas supply for Jinling Power Plant (CCGT) is transported through the pipeline of “West-East"West-East Gas Transport Project”Project".
Jinling Power Plant (Coal-fired) consists of two 1,030 MW domestic ultra-supercritical coal-fired generating units, which commenced operation in December 2009 and August 2012, respectively. We hold 60% equity interest in Phase I and Phase II of Jinling Power Plant (Coal-fired). The coal supply for Jinling Power Plant (Coal-fired) is primarily from Shanxi Province and Inner Mongolia Autonomous Region. Jinling Power Plant (Coal-fired) typically stores 300,000 tons of coal on site. In 2014,2016, Jinling Power Plant (Coal-fired) obtained approximately 29.7%37% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jinling Power Plant (Coal-fired) in 20142016 was RMB532.62 (2013: RMB571.87)RMB447.20 (2015: RMB421.31) per ton.
Jinling Power Plant sells its electricity to Jiangsu Electric Power Company.
Qidong Wind Power
Huaneng Qidong Wind Power Plant (“("Qidong Wind Power”Power") is located in Nantong City, Jiangsu. Qidong Wind Power Phase I has an installed capacity of 91.5 MW and commenced operation in March 2009. The first stage and second stage of the Phase II Project of Qidong Wind Power with a total generation capacity of 50 MW and 44 MW respectively commenced operation in January 2011 and June 2012, respectively. We hold 65% equity interest in Qidong Wind Power.
Qidong Wind Power Plant sells its electricity to Jiangsu Electric Power Company.
Jinling CCGT Co-generation
Jinling CCGT Co-generation is located in Nanjing, Jiangsu. The plant comprises of two 191 MW class (E grade) combined cycle gas turbine cogeneration units and the corresponding support facilities. The two units commenced operation in April 2013 and May 2013, respectively. We hold 51% equity interest in Jinling CCGT Co-generation. The gas supply for this plant is transported through the pipeline of “West-East"West-East Gas Transport Project”Project".
Jinling CCGT Co-generation sells its electricity to Jiangsu Electric Power Company.
Rudong Wind Power
Rudong Wind Power Plant (“("Rudong Wind Power”Power") is located in Rudong, Jiangsu. Phase I of the plant has a total installed generation capacity of 48MW. It commenced operations in November 2013. We hold 65%90% equity interest in Rudong Wind Power .
Power.
Rudong Wind Power sells its electricity to Jiangsu Electric Power Company.
Tongshan Wind Power
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Tongshan Wind Power Plant ("Tongshan Wind Power") is located in Tongshan, Jiangsu Province. Phase I of the plant has an installed capacity of 50 MW. It commenced operation in March 2016. We hold 70% equity interest in Tongshan Wind Power.
Tongshan Wind Power sells its electricity to Jiangsu Electric Power Company.
Suzhou Co-generation
Huaneng Suzhou Co-generation Power Plant (“("Suzhou Co-generation”Co-generation") is located in Suzhou City in Jiangsu Province. Suzhou Co¬generationCo-generation has an installed capacity of 120 MW and consists of two 60 MW coal-fired generating units which commenced operation in 2006. We hold 53.45% equity interest in Suzhou Co-generation. We acquired the power plant in October, 2014January, 2015 from Huaneng Group.
The coal supply for Suzhou Co-generation is obtained from Shanxi, Inner Mongolia and partially imported coal.Suzhou Co-generation typically stores 30,000 tons of coal on site. In 2016, Suzhou Co-generation obtained 24% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Suzhou Co-generation in 2016 was RMB455.26 (2015: RMB426.30) per ton.
Suzhou Co-generation sells its electricity to Jiangsu Electric Power Company.
Taicang Coal Pier Project
Suzhou Port Taicang Terminal Zone Huaneng Coal Pier (“("Taicang Coal Pier Project”Project") is located in Taicang, Suzhou. The Taicang Coal Pier Project has one berth of 100,000 dead weight tonnage (“DWT”("DWT") and one berth of 50,000 DWT for coal discharging, four berths of 5,000 DWT each and six berths of 1,000 DWT each for coal loading. The above facilities have commenced trial operation in 2013. We hold 100% equity interest in this project.
Nanjing Chemical Industry Park Co-generation Power Plant
Nanjing Chemical Industry Park Co-generation Power Plant ("Nanjing Chemical Industry Park Co-Generation") is located in the city of Nanjing in Jiangsu Province. It has an installed capacity of 100MW consisting of two sets of extraction back-pressure turbines of 50 MW each, which commenced operation in April and December 2016, respectively. We hold 70% equity interest in Nanjing Chemical Industry Park Co-Generation Power Plant.
Nanjing Chemical Industry Park Co-generation typically stores 60,000 tons of coal on site. In 2016, Nanjing Co-generation obtained 85% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Nanjing Chemical Industry Park Co-generation in 2016 was RMB490.8 per ton.
Nanjing Chemical Industry Park Co-generation Power Plant sells its electricity to Jiangsu Electric Power Company.
Luhe Wind Power
Luhe Wind Power ("Luhe Wind Power") is located in Nanjing, Jiangsu. It has an installed capacity of 50 MW, consisting of 25 wind power turbines of 2 MW each, which commenced operation in December 2016. We hold 100% equity interest in Luhe Wind Power.
Luhe Wind Power sells its electricity to Jiangsu Electric Power Company.
Construction Project in Jiangsu Province
Suzhou GasfiredGas fired Co-generation Project. Project. In October 2012, Huaneng Suzhou gas-fired Co-generation Project was approval fromapproved by the Jiangsu Province Development and Reform Commission. We hold 100% equity interest in this
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project. The Project is planned to consist of two sets of 255MW class (E-class) combined cycle gas turbine cogeneration units.
Nanjing Chemical Industry Park Co-generationGuanyun Co-Generation Power Project.Project In October 2013, Nanjing Chemical Industry Park Co-generation Power Project was approved by the Development and Reform Commission of Jiangsu Province. We hold 80% equity interest in the project. The project is planned to have an installed capacity of 100 MW, consisting of three high temperature and pressure coal-fired boiler of 480t/h and two extraction back-pressure turbines of 50 MW.

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Tongshan Wind Power Project. Tongshan Wind. Guanyun Co-Generation Power  Project was approved by the Development and Reform Commission of Jiangsu Province in November 2014.April 2015. We hold 70%100% equity interest in the project. Tongshan WindGuanyun Co-Generation Power  Project is planned to have an installed capacity of 49.550 MW, consisting of 24 wind powertwo sets of extraction back-pressure turbines of 225 MW and one wind power turbines of 1.5 MW.
Luhe Wind Power Phase I Project. Luhe Wind Power Phase I Project was approved by the Development and Reform Commission of Jiangsu Province in December 2013. We hold 100% equity interest in the project. The Project is planned to have an installed capacity of 49.5 MW, consisting of 24 wind power turbines of 2 MW and one wind power turbines of 1.5 MW.
each.
Power Plants in Shanghai Municipality
Shidongkou I
Huaneng Shanghai Shidongkou First Power Plant (“("Shidongkou I”I") is located in the northern region of the Shanghai Power Grid. The plant comprises four 325 MW coal-fired generating units, which commenced operation in February and December 1988, September 1989 and May 1990 respectively, and has a total installed capacity of 1,300 MW. The installed capacities of Unit II and Unit III were expanded from 300 MW to 325 MW in September 2007 and January 2008, respectively. The installed capacities of Unit I and Unit V were expanded from 300 MW and 320 MW to 325 MW and 325 MW in January 2010, respectively. We hold 100% equity interest in Shidongkou I.
The coal supply for Shidongkou I is primarily from Shanxi Province, Anhui Province and Henan Province. Shidongkou I Power Plant typically stores 150,000 tons of coal on site. In 2014,2016, Shidongkou I obtained 12.7%20% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Shidongkou I in 20142016 was RMB417.05 (2013: RMB455.53)RMB318.58 (2015: RMB337.15) per ton.
Shidongkou I sells its electricity to State Grid Shanghai Municipal Electric Power Company.
Shidongkou II
Huaneng Shanghai Shidongkou Second Power Plant (“("Shidongkou II”II") is located in the northern suburbs of Shanghai. Shidongkou II has an installed capacity of 1,200 MW and consists of two 600 MW coal-fired super-critical units which commenced operations in June and December 1992, respectively. We hold 100% equity interest in Phase I of Shidongkou II. Phase II of Shidongkou II has an installed capacity of 1,320 MW and consists of two 660 MW coal-fired super-critical units which commenced operations in October 2011. We hold 50% equity interest in Phase II of Shidongkou II.
The coal supply for Shidongkou II is obtained from several coal producers located mostly in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port or Tianjin port and shipped to the plant’splant's own wharf facilities. The wharf is capable of handling 35,000 ton vessels. Shidongkou II typically stores 180,000 tons of coal on site.
In 2014,2016, Shidongkou II obtained 19.3%9% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Shidongkou II in 20142016 was RMB484.76 (2013: RMB475.21)RMB358.21 (2015: RMB386.06) per ton.
Shidongkou II sells its electricity to State Grid Shanghai Municipal Electric Power Company.
Shanghai CCGT
Shanghai CCGT is located in Baoshan District of Shanghai Municipality. Shanghai CCGT consists of three 390 MW gas-fired combined-cycle generating units with a total installed capacity of 1,170 MW, which were put into operation in May, June and July 2006, respectively. We hold 70% equity interest in Shanghai CCGT.
The gas supply for Shanghai CCGT is transported through the pipeline of “West-East"West-East Gas Transport Project”Project". Shanghai CCGT generates electricity during the peak load periods and sells its electricity to State Grid Shanghai Municipal Electric Power Company.
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Power Plant in Chongqing Municipality
Luohuang Power Plant
Huaneng Luohuang Power Plant (“("Luohuang Power Plant”Plant") is located in Chongqing Municipality. Each of Phase I and Phase II of Luohuang Power Plant has an installed capacity of 720 MW and consists of two 360 MW coal-fired generating units. The two units in Phase I commenced operation in September 1991 and February 1992 respectively, and the two units in Phase II commenced operation in December 1998. Luohuang Power Plant Phase III consist of two 600 MW coal-fired generating units with an installed capacity of 1,200 MW, which were put into operation in December 2006 and January 2007, respectively. We hold 60% equity interest in Luohuang Power Plant.
The coal supply for Luohuang Power Plant is obtained from Chongqing Municipality. Luohuang Power Plant typically stores 450,000 tons of coal on site. In 2014,2016, Luohuang Power Plant obtained 72.1%87% of its coal supplies from annual contracts and the remainder from the open market. The average coal purchase price for Luohuang Power Plant in 20142016 was RMB527.64 (2013: RMB537.73)RMB462.33 (2015: RMB432.97) per ton.

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Luohuang Power Plant sells its electricity to Chongqing Municipal Electric Power Company.
Liangjiang CCGT
Liangjiang CCGT is located in Chongqing Municipality. Two generating units of this plant commenced operation in October and December 2014, respectively, with an installed capacity of 934 MW. We hold 100%90% equity interest in Liangjiang CCGT. The gas supply for Liangjiang CCGT is transported though pipeline of “West-East"West-East Gas Transport Project.”
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Liangjing CCGT sells its electricity to State Grid Chongqing Municipal Electric Power Company.
Power Plants in Zhejiang Province
Yuhuan Power Plant
Huaneng Yuhuan Power Plant (“("Yuhuan Power Plant”Plant") is located in Taizhou of Zhejiang Province. Yuhuan Power Plant Phase I consists of two 1,000 MW ultra-supercritical coal-fired generating units with a total installed capacity of 2,000 MW. Unit I and Unit II were put into operation in November 2006 and December 2006, respectively. Yuhuan Power Plant Phase II consists of two 1,000 MW ultra-supercritical coal-fired generating units with a total installed capacity of 2,000 MW, which commenced operations in November 2007. We hold 100% equity interest in Yuhuan Power Plant.
The coal supply for Yuhuan Power Plant is primarily obtained from Shanxi Province and Inner Mongolia Autonomous Region. Yuhuan Power Plant typically stores 500,000 tons of coal on site. In 2014,2016, Yuhuan Power Plant obtained 46.1%76% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yuhuan Power Plant in 20142016 was RMB557.96 (2013: RMB615.59)RMB475.90 (2015: RMB474.23) per ton.
Yuhuan Power Plant sells its electricity to State Grid Zhejiang Electric Power Company.
Changxing “Replacing"Replacing Small Units with Large Ones”Ones" Project
Changxing Power Plant “Replacing"Replacing Small Units with Large Ones”Ones" Project ("Changxing Power Plant") is located in Changxing County of Zhejiang Province. Changxing “Replacing"Replacing Small Units with Large Ones”Ones" Project commenced operation in December 2014, with an installed capacity of 1,320 MW. This is the first project of ultra-supercritical coal-fired generating units of the Company. We hold 100% equity interest in the project.
The coal supply for Changxing Power Plant is primarily obtained from Inner Mongolia,Hebei and partially imported coal. Changxing Power Plant typically stores 150,000 tons of coal on site. In 2016, Changxing Power Plant
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obtained 41% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Changxing Power Plant in 2016 was RMB477.36 (2015: RMB484.53) per ton.
Tongxiang CCGT
Tongxiang CCGT is located in Tongxiang City of  Zhejiang Province. The plant commenced operation in September 2014 with an installed capacity of 458.4 MW. We hold 95% equity interest in the Tongxiang CCGT. The gas supply for Tongxiang CCGT is transported thoughthrough pipeline of “West-East"West-East Gas Transport Project.”
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Tongxiang CCGT sells its electricity to State Grid Zhejiang Electric Power Company.
Si’anChangxing Photovoltaic
Si’anSi'an 10MW Distributed Photovoltaic Power Project (“Si’an Photovoltaic”("Changxing Photovoltaic") is located in Changxing County of Zhejiang Province. Part of the project commenced operation in December 2014, with an installed capacity of 5 MW. In March 2015, the rest of the project commenced operation in March 2015, with an installed capacity of 5 MW. We hold 100% equity interest in Si’anChangxing Photovoltaic.
Changxing Hongqiao Photovoltaic
Changxing Hongqiao Photovoltaic Power Project ("Changxing Hongqiao Photovoltaic") is located in Changxing Country of Zhejing Province. It commenced operation in Setpotember 2016, with an installed capacity of 30 MW. We hold 100% euiqty interest in this project.
Power Plant in Hunan Province
Yueyang Power Plant
Huaneng Yueyang Power Plant (“("Yueyang Power Plant”Plant") is located in Yueyang City of Hunan Province. Yueyang Power Plant Phase I has an installed capacity of 725 MW and consists of two 362.5 MW sub-critical coal-fired generating units which commenced operation in September and December 1991 respectively. Yueyang Power Plant Phase II consists of two 300MW coal-fired generating units with installed capacity of 600 MW, which were put into operation in March and May 2006, respectively. Huaneng Yueyang Power Plant Phase III (“("Yueyang Power Plant Phase III”III") consists of two 600 MW generating units with a total installed capacity of 1,200 MW. In January 2011 and August 2012, Unit 5 and Unit 6 of Yueyang Power Plant Phase III, two 600MW coalfired generating units, commenced operation, respectively. We hold 55% equity interest in Yueyang Power Plant.
The coal supply for Yueyang Power Plant is obtained from Datong in Shanxi Province. Yueyang Power Plant typically stores 500,000 tons of coal on site. In 2014,2016, Yueyang Power Plant obtained 22.5%4% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yueyang Power Plant in 20142016 was RMB554.65 (2013: RMB604.30)RMB485.68 (2015: RMB436.55) per ton.
Yueyang Power Plant sells its electricity to State Grid Hunan Electric Power Company.
Xiangqi Hydropower

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Huaneng Yongzhou Xiangqi Hydropower Station (“("Xiangqi Hydropower”Hydropower") is located in Xiangqi County of Hunan Province. Xiangqi Hydropower consists of four 20 MW hydraulic generating units with a total installed capacity of 80 MW. In December 2011, Unit I of Xiangqi Hydropower with an installed capacity of 20 MW passed a trial run. Unit I and Unit II of Yongzhou Xiangqi Hydropower with an installed capacity of 20 MW each commenced operation in December 2011 and May 2012, respectively. Unit III and Unit IV of Xiangqi Hydropower with an installed capacity of 20 MW commenced operation in May and August 2012, respectively. We hold 100% equity interest in Xiangqi Hydropower.
Xiangqi Hydropower sells its electricity to Hunan Electric Power Company.
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Subaoding Wind Power
Subaoding Wind Power ("Subaoding Wind Power") is located between Hongjiang City and Dongkou County in Hunan. Part of the Subaoding Wind Power commenced operation in December 2014, with an installed capacity of 80MW, consisting of 40 wind power turbines of 2 MW. The rest of the Subaoding Wind Power commenced operation in March 2015, with an installed capacity of 70 MW, consisting of 35 wind power turbine of 2 MW each. As of the date of this report, all of the wind power turbines have commenced operation with a total installed capacity of 150 MW. We hold 100% equity interest in the Subaoding Wind Power.
Construction Projects in Hunan Province
Subaoding Wind Power Plant. Subaodingsells its electricity to Hunan Electric Power Company.
Guidong Wind Power Plant was approved by the Development and Reform Commission
Guidong Wind Power ("Guidong Wind Power") is located at Guidong County of Hunan ProvinceProvince. Guidong Wind Power commenced operation in June 2013.2015, with an installed capacity of 84 MW, consisting of 42 wind power turbines of 2 MW each. We hold 100% equity interest in the project. The project is planned to have an installed capacity of 150MW, consisting of 75 wind power turbines of 2 MW, among which, 40 wind power turbines have commenced operation with an installed capacity of 80 MW.this plant.
Guidong Hankou Wind Power Plant. Guidong Hankou Windsells its electricity to Hunan Electric Power Plant Project was approved by the Development and Reform Commission of Hunan Province. We hold 100% equity interest in the project. The project is planned to have an installed capacity of 48 MW, consisting of 24 wind power turbines of 2 MW.
Guidong Huangni Lake Wind Power Plant. Guidong Huangni Lake Wind Power Plant was approved by the Development and Reform Bureau of Guidong County of Hunan Province. We hold 100% equity interest in the project. The project is planned to have an installed capacity of 36 MW, consisting of 18 wind power turbines of 2 MW.
Company.
Power Plant in Hubei Province
Enshi Maweigou Hydropower
Hubei Enshi Maweigou Hydropower Station (“("Enshi Maweigou Hydropower”Hydropower") is located in Enshi City of Hubei Province. We entered into an equity transfer agreement to acquire Enshi Maweigou Hydropower on September 30, 2011. Enshi Maweigou Hydropower is planned to consistconsists of eleventhree 5 MW hydraulic generating units and two 20 MW hydraulic generating units with a total installed capacity of 55 MW. In December 2011, an installed capacity of 15 MW of Enshi Maweigou Hydropower commenced operation. We hold 100% equity interest in Enshi Maweigou Hydropower.
Enshi Maweigou Hydropower sells its electricity to Hubei Electric Power Company.
Wuhan Power Plant
Huaneng Wuhan Power Plant (“ ("Wuhan Power Plant”Plant") is located in Wuhan City in Hubei Province. Wuhan Power Plant has an installed capacity of 2,460 MW and consists of two 300 MW coal-fired generating units which commenced operation in 1993 and 1994, two 330 MW coal-fired generating units which commenced operation in 1997, and two 600 MW coal-fired generating units which commenced operation in 2006. We hold 75% equity interest in Wuhan Power Plant. We acquired the power plant in October, 2014January, 2015 from Huaneng Group.
Wuhan Power Plant sells its electricity to Hubei Electric Power Company.
Dalongtan Hydropower
Huaneng Dalongtan Hydropower Station (“ ("Dalongtan Hydropower”Hydropower") is located in Enshi City of Hubei Province. Dalongtan Hydropower has an installed capacity of 37.6 MW. We hold 97% equity interest in Dalongtan Hydropower. We acquired the power plant in October, 2014January, 2015 from Huaneng Group.
Dalongtan Hydropower sells its electricity to Hubei Electric Power Company.
Jingmen Co-generation
Huaneng Jingmen Co-generation Power Plant (“ ("Jingmen Co-generation”Co-generation" or "Jingmen Thermal Power") is located in Jingmen City in Hubei Province. Jingmen Co-generation has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operation in 2014. We hold 100% equity interest in Jingmen Co-generation. We acquired the power plant in October, 2014January, 2015 from HIPDC.
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The coal supply for Jingmen Co-generation is obtained from Shaanxi and Gansu. Jingmen Co-generation typically stores 90,000 tons of coal on site. In 2016, Jingmen Co-generation obtained 69% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jingmen Co-generation in 2016 was RMB464.31 (2015: RMB399.46) per ton.
Jingmen Co-generation sells its electricity to Hubei Electric Power Company.

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Yingcheng Co-generation
Huaneng Yingcheng Co-generation Power Plant (“ ("Yingcheng Co-generation”Co-generation") is located in Yingcheng City in Hubei Province. Unit II of Yingcheng Co-generation has an installed capacity of 350 MW which commenced operation in January 2015. Unit I of Yingcheng Co-generation has an installed capacity of 50 MW, which commenced operation in June 2016. We hold 100% equity interest in Yingcheng Co-generation. We acquired the power plant in October, 2014January, 2015 from HIPDC.
The coal supply for Yingcheng Co-generation is obtained from Shanxi and Shaanxi.Yingcheng Co-generation typically stores 50,000 tons of coal on site. In 2016, Yingcheng Co-generation obtained 100% of its total consumption of coal from the open market. The average coal purchase price for Yingcheng Co-generation in 2016 was RMB632.52 (2015: RMB516.10) per ton.
Yingcheng Co-generation sells its electricity to Hubei Electric Power Company.
Jieshan Wind Power
Construction Projects in Hubei Province
Enshi Qinglong Hydropower Project. We entered into an equity transfer agreement in September 2011 to purchase the Enshi Qinglong Hydropower Project. We hold 100% equity interest in the project. The project is planned to have an installed capacity of 40 MW, consisting of two hydropower generator of 20 MW.
Suixian Jieshan Wind Power Plant (“("Jieshan Wind Power") is located at Suixian County of Hubei Province. The Phase I”). SuixianI of Jieshan Wind Power Plant was approved by the Development and Reform Commission of Hubei Provincecommenced operation in December 2013. We hold 100%  equity interest in the project. The project is planned to haveJune 2015, with an installed capacity of 48 MW, consisting of 24 wind power turbines of 2 MW. Phase II of Jieshan Wind Power commenced operation in August 2016, with an installed capacity of 72 MW, consisting of 36 wind power turbines of 2 MW. We hold 100% equity interest in the Jieshan Wind Power.
Jieshan Wind Power sells its electricity to Hubei Electric Power Company.
Power Plant in Jiangxi Province
Jinggangshan Power Plant
Huaneng Jinggangshan Power Plant (“("Jinggangshan Power Plant”Plant") is located in Ji’anJi'an City of Jiangxi Province. Jinggangshan Power Plant has an installed capacity of 1,920 MW and consists of two 300 MW coal-fired generating units which commenced operation in December 2000 and August 2001 respectively, and two 660 MW generating units which commenced operation in November and December 2009, respectively. We hold 100% equity interest in Jinggangshan Power Plant.
The coal supply for Jinggangshan Power Plant is obtained from Henan Province, Anhui Province and Jiangxi Province. Jinggangshan Power Plant typically stores 255,000 tons of coal on site. In 2014,2016, Jinggangshan Power Plant obtained 56.3%29% of its total coal consumption from annual contracts and the remainder from the open market. The average coal purchase price for Jinggangshan Power Plant in 20142016 was RMB631.58 (2013: RMB669.05)RMB544.48 (2015: RMB532.70) per ton.
Jinggangshan Power Plant sells its electricity to Jiangxi Electric Power Company.
Jianggongling Wind Power
Jianggongling Wind Power Plant (“("Jiangongling Wind Power”Power") is located in Jiujiang Municipality of Jiangxi Province. Jianggongling Wind Power commenced operation in December 2014 (Phase I), with an installed capacity of
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48 MW, consisting of 24 wind power turbine of 2 MW, and in December 206 (Phase II), with an installed capacity of 26 MW, consisting of 13 wind power turbines of 2 MW. We hold 100% equity interest in the Jianggongling Wind Power.
Ruijin Power Plant
Huaneng Ruijin Power Plant (“ ("Ruijin Power Plant”Plant") is located in Ruijin City in Jiangxi Province. Ruijin Power Plant has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operation in 2008. We hold 100% equity interest in Ruijin Power Plant. We acquired the power plant in October, 2014January, 2015 from HIPDC.
The coal supply for Ruijin Power Plant is obtained from Shanxi, Shaanxi, and partially imported coal. Ruijin Power Plant typically stores 110,000 tons of coal on site. In 2016, Ruijin Power Plant obtained 6% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Ruijin Power Plant  in 2016 was RMB509.45 (2015: RMB555.52) per ton.
Ruijin Power Plant sells its electricity to Jiangxi Electric Power Company.
Anyuan Power Plant
Construction Project in Jiangxi Province
Anyuan Power Plant in"Replacing Small Units with Large Ones" Project ("Anyuan Power Plant") is located at Pingxiang City of Jiangxi Province. The plant has a total installed capacityof 1,320 MW, consisting of two ultra supercritical units with second reheat cycle of 660 MW each. Anyuan Power Plant is the first project equipped with 660MW ultra supercritical unit with second reheat cycle. We acquired 100% equity interest of the power plant in October, 2014January 2015.
The coal supply for Anyuan Power Plant is obtained from HIPDC.Gansu and Shanxi. Ruijin Power Plant typically stores 130,000 tons of coal on site. In 2016, Anyuan Power Plant obtained 25% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Ruijin Power plantPlant  in 2016 was RMB546.5 (2015: RMB460.08) per ton.
Anyuan Power Plant sells its electricity to Jiangxi Electric Power Company.
Construction Project in Jiangxi Province
Linghuashan Wind Power Project Phase I. The project of Linghuashan Wind Power was approved by the Energy Administration of Jiangxi Province. We hold 100% equity interest of the project. The project is planned to have an installed capacity of 120048 MW, consisting of two 600 MW coal-fired generating units.
24 wind power turbines of 2 MW.
Power Plant in Anhui Province
Chaohu Power Plant
Huaneng Chaohu Power Plant (“(" Chaohu Power Plant”Plant") is located in Chaohu City in Anhui Province. Chaohu Power Plant has an installed capacity of 12001,200 MW and consists of two 600 MW coal-fired generating units which commenced operation in 2008. We hold 100%60% equity interest in Chaohu Power Plant. We acquired the power plant in October, 2014January, 2015 from HIPDC.
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The coal supply for Chaohu Power Plant is obtained from Shandong and Gansu. Chaohu Power Plant typically stores 110,000 tons of coal on site. In 2016, Chaohu Power Plant obtained 77% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Chaohu Power Plant  in 2016 was RMB479.8 (2015: RMB440.56) per ton.
Chaohu Power Plant sells its electricity to Anhui Electric Power Company.

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Hualiangting Hydropower
Huaneng Hualiangting Hydropower Plant (“ ("Hualiangting Hydropower”Hydropower") is located in Anqing City in Anhui Province. Hualiangting Hydropower has an installed capacity of 40 MW which commenced operation in 1981 and 1987. We hold 100% equity interest in Hualiangting Hydropower. We acquired the power plant in October, 2014January, 2015 from Huaneng Group.
Hualiangting Hydropower sells its electricity to Anhui Electric Power Company.
Huaining Shijing Wind Power
Construction Project in Anhui Province
Shijing Wind Power Plant in Huaining County. The project of ShijingCountry ("Huaining Wind Power") is located in Huaining Country, Anhui Province. Huaining Wind Power Plant in Huaining County was approved by the Development and Reform Commission of Anhui Province. We hold 100% equity interest of the project. The project is planned to have anhas a total installed capacity of 50 MW, consisting of 25 wind power turbines of 2 MW.2MW each, which commenced operation in June 2016. We hold 100% equity interest of the plant.
Huaining Wind Power sells its electricity to Anhui Electric Power Company.
Power Plant in Fujian Province
Fuzhou Power Plant
Huaneng Fuzhou Power Plant (“("Fuzhou Power Plant”Plant") is located on the south bank of the Min River, southeast of the city of Fuzhou. Fuzhou Power Plant has been developed in three phases. The Fuzhou Power Plant Phase I and Phase II utilize four 350 MW coal-fired generating units with an installed capacity of 1,400 MW, and commenced operations in 1988 and 1999, respectively. The Fuzhou Power Plant Phase III consists of two 600 MW generating units with a total installed capacity of 1,200 MW, and commenced operations in 2010 and 2011, respectively. The capacity of Unit V and Unit VI of the Fuzhou Power Plant Phase III was expanded to 660 MW per unit since January 2012. We hold 100% equity interest in Fuzhou Power Plant.
The coal supply for Fuzhou Power Plant is obtained from several coal producers located mostly in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and by ship down to the east coast of China and up to the Min River to a wharf located at Fuzhou Power Plant. We own and maintain the wharf, which is capable of handling vessels of up to 20,000 tons and of unloading 10,000 tons to 15,000 tons of coal per day. Fuzhou Power Plant typically stores 180,000 tons of coal on site.
In 2014,2016, the Fuzhou Power Plant obtained 22.9%13% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Fuzhou Power Plant in 20142016 was RMB529.91 (2013: RMB586.87 )RMB394.11 (2015: RMB431.36) per ton.
Fuzhou Power Plant sells its electricity to Fujian Electricity Power Company.
Construction ProjectProjects in Fujian Province
Jiangjunmao Operating Zone Phase I Project in the Port of Fuzhou Luoyuan Bay Area.  Power PlantJiangjunmao Operating Zone Phase I Project in the Port of Fuzhou. Luoyuan Bay AreaPower Plant was approved by the NDRC. We entered into an asset transfer agreementNDRC in December 2009 to purchase the Jiangjunmao Operating Zone Phase I Project in the Port of  Fuzhou Luoyuan Bay Area.2014. We hold 100% equity interest in the project. The project is plannedplaned to build a dock with a loadinghave an installed capacity of 0.15 million tons and  annual throughput1,320 MW, consisting of 10 million tons.two ultra supercritical coal-generating units of 660 MW each.
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The Project of Bili Operating Zone Number Six Ship Berth in the Port of Fuzhou Luoyuan Bay Area. The Project of Bili Operating Zone Number Six Ship Berth in the Port of Fuzhou Luoyuan Bay Area was approved by the Development and Reform Commission of Fujian Province in July 2010. We entered into an asset transfer agreement in December 2009 to purchase the Project of Bili Operating Zoon Number Six Ship Berth in the Port of  Fuzhou Luoyuan Bay Area. We hold 100% equity interest in the project. The project is planned to build a ship berth with a loading capacity of 0.05 million tons and annual throughput of 2.3 million tons.Power Plants in Guangdong Province
 
Power Plants in Guangdong Province
Shantou Power Plant
Huaneng Shantou Coal-Fired Power Plant (“("Shantou Power Plant”Plant") had originally been developed and constructed by HIPDC which transferred all its rights and interests therein to us effective on December 31, 1994. Located on the outskirts of the city of Shantou, Shantou Power Plant was set up with the support of the Shantou municipal government and the Guangdong provincial government. Shantou Power Plant Phase I consists of two 300 MW coal-fired generating units with boilers, which commenced operation in January 1997. Shantou Power Plant Phase II consists of one 600 MW coal-fired generating unit and commenced operation in October 2005. We hold 100% equity interest in Shantou Power Plant.
The coal supply for Shantou Power Plant is obtained from several coal producers located mostly in the northern area of Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and by ship down the east coast of China to the wharf located at Shantou Power Plant, which is maintained by the Shantou Port Authority and is capable of handling 35,000 ton vessels. The Shantou Power Plant typically stores 300,000 tons of coal on site.
In 2014,2016, the Shantou Power Plant obtained 26.8%16% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Shantou Power Plant in 20142016 was RMB516.82 (2013: RMB579.67)RMB444.61 (2015: RMB430.14) per ton.

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Shantou Power Plant sells its electricity to Guangdong Electric Power Company.
Haimen Power Plant
Huaneng Haimen Power Plant (“Haimen Power Plant”) is located in Shantou City, Guangdong Province. Haimen Power Plant has an installed capacity of 4,144 MW and consists of four 1,036 MW generating units. The first two generating units ("Haimen") commenced operation in July 2009 and October 2009, respectively. We hold 100% equity interest in the first two generating units. The other two generation units commenced operation at the beginning of 2013.2013 ("Haimen Power"). We hold 80% equity interest in the other two generating units.
units.
The coal supply for Haimen Power Plant is mainly imported from Indonesia. Haimen Power Plant typically stores 400,000 tons of coal on site. In 2014,2016, Haimen Power Plant obtained 40.4%100% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Haimen Power Plant in 20142016 was RMB530.99 (2013: RMB558.60)RMB476.75 (2015: RMB498.17) per ton.
Haimen Power Plant sells its electricity to Guangdong Electric Power Company.
Shantou Photovoltaic
Construction Project
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Shantou Power Plant 17 MW Photovoltaic Power Plant ("Shantou Photovoltaic") is located in Shantou City, Guangdong Province
Shantou Port Haimen Terminal Zone Huaneng Coal Transit Base Project. Shantou Port Haimen Terminal Zone Huaneng Coal Transit Base Project (“Haimen Terminal Project”) was approved by the NDRCProvince.  It has an installed capacity of 17 MW, which commenced operation in February 2012. Currently, weSeptember 2016. We hold 100% equity interest in this project. Haimen Terminal Project is plannedthe Project.
Shantou Photovoltaic sells its electricity to transform and newly construct a 70,000 DWT coal unloading berth, a 50,000 DWT coal loading berth and a 3,000 DWT multi-purpose berth, with a planned annual throughput capacity of 22.7 million tons, including ship unloading capacity of 21.5 million tons and ship loading capacity of 1.2 million tons.
Guangdong Electric Power Company.
Power Plants in Yunnan Province
Diandong Energy
Yunnan Diandong Energy Limited Company (“("Diandong Energy”Energy") is located in Qujing City, Yunnan Province. Diandong Energy has an installed capacity of 2,400 MW and consists of four 600 MW generating units which commenced operation in February 2006, July 2006, November 2006 and May 2007, respectively. We hold 100% equity interest in Diandong Energy.
The coal supply for Diandong Energy is mainly obtained from Yunnan and Guizhou Provinces. Diandong Energy typically stores 1,200,000 tons of coal on site. In 2014,2016, Diandong Energy obtained 18.8%20% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Diandong Energy in 20142016 was RMB468.62 (2013: RMB469.18)RMB342.39 (2015: RMB371.25) per ton.
Diandong Energy sells its electricity to Yunnan Electric Power Company.
Yuwang Energy
Yunnan Diandong Yuwang Energy Limited Company (“("Yuwang Energy”Energy") is located in Qujing City, Yunnan Province. Yuwang Energy has an installed capacity of 1,200 MW and consists of two 600 MW generating units which commenced operation in July 2009 and February 2010, respectively. We hold 100% equity interest in Yuwang Energy.
The coal supply for Yuwang Energy is mainly obtained from Yunnan and Guizhou Provinces. Yuwang Energy typically stores 600,000 tons of coal on site. In 2014,2016, Yuwang Energy obtained 56.8%100% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price of coal for Yuwang Energy in 20142016 was RMB454.56 (2013: RMB456.19)RMB380.58 (2015: RMB341.80) per ton.
Yuwang Energy sells its electricity to Yunnan Electric Power Company.
WenbishanFuyuan Wind Power
WenbishanFuyuan Wind Power Plant (“Wenbishan("Fuyuan Wind Power”Power") is located in the Fuyuan County of Qujing Municipality of Yunnan Province. Fuyuan Wind Power consists of Wenbishan Wind Power, which commenced operation in November 2014 with an20 wind power turbines of 2 MW each, Yibasan Wind Power, which commenced operation in 2014 with 24 wind power turbines of 2 MW each, and Shengjing Wind Power, which commenced operation in December 2016 with 24 wind power turbines of 2 MW each. We hold 100% equity interest in Fuyuan Wind Power.
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Fuyuan Wind Power sells its electricity to Yunnan Electric Power Company.
Construction Project in Yunnan Province
Fuyuan Wind Power also has new wind projects under construction, with installed capacity of 4048 MW, consisting of 2024 wind power turbines of 2 MW each. We hold 100% equity interest in the Wenbishan Wind Power.
Construction Project in Yunnan Province
Yunnan Chuxiong Gas Co-generation Project. Huaneng Yunnan Chuxiong Gas Co-generation Project (“Yunnan Chuxiong Project”), which is wholly owned by us, was approved by the Development and Reform Commission of the Yunnan Province in February 2012. We hold 100% equity interest in this project. Yunnan Chuxiong Project is planned to build two 300 MW class combined cycle gas turbine cogeneration units.

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Diandong Mine Project. Diandong Mine Project consists of Bailongshan Coal Mine and Yuwang Coal Mine with an area of approximately 131.4 square kilometers. It has a recoverable reserve of approximately 1.788 billion tons. Diandong Mine Project is planned to commence operation gradually from 2014 to 2018, with an aggregate planned production capacity of approximately 6.0 million tons per year.
Power Plants in Hainan Province
Haikou Power Plant
Huaneng Haikou Power Plant (“ ("Haikou Power Plant”Plant") is located in Haikou City in HainanProvince.Hainan Province. Haikou Power Plant has an installed capacity of 936 MW and consists of two 138 MW coal-fired generating units which commenced operation in 1999, 2000, and two 330 MW coal-fired generating units which commenced operation in 2006. We hold 91.8% equity interest in Haikou Power Plant. We acquired the power plant in October, 2014January, 2015 from Huaneng Group.
The coal supply for Haikou Power Plant  is mainly obtained from Inner Mongolia, Shanxi, and partially imported coal. Haikou Power Plant typically stores 120,000 tons of coal on site. In 2016, Haikou Power Plant obtained 19% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price of coal for Haikou Power Plant in 2016 was RMB393.68 (2015: RMB428.82) per ton.
Haikou Power Plant sells its electricity to Hainan Electric Power Company.
Dongfang Power Plant
Huaneng Dongfang Power Plant (“ ("Dongfang Power Plant”Plant") is located in Dongfang City in Hainan Province. Dongfang Power Plant has an installed capacity of 14001,400 MW and consists of four 350 MW coal-fired generating units which commenced operation in 2009, 2012. We hold 91.8% equity interest in Dongfang Power Plant. We acquired the power plant in October, 2014January, 2015 from Huaneng Group.
The coal supply for Dongfang Power Plant  is mainly obtained from Shanxi and partially imported coal. Dongfang Power Plant typically stores 160,000 tons of coal on site. In 2016, Dongfang Power Plant obtained 8% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price of coal for Dongfang Power Plant in 2016 was RMB385.97 (2015: RMB431.69) per ton.
Dongfang Power Plant sells its electricity to Hainan Electric Power Company.
Nanshan Co-generation
Huaneng Nanshan Co-generation Power Plant (“ ("Nanshan Co-generation”Co-generation") is located in Sanya City in Hainan Province. Nanshan Co-generation has an installed capacity of 132 MW which commenced operation in 2003. We hold 91.8% equity interest in Nanshan Co-generation. We acquired the power plant in October, 2014January 2015 from Huaneng Group.
Nanshan Co-generation sells its electricity to Hainan Electric Power Company.
Gezhen Hydropower Plant
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Huaneng Gezhen Hydropower Plant (“ ("Gezhen Hydropower Plant”Plant") is located in Dongfang City in Hainan Province. Gezhen Hydropower Plant has an installed capacity of 82 MW which commenced operation in 2009. We hold 91.8% equity interest in Gezhen Hydropower Plant. We acquired the power plant in October, 2014January, 2015 from Huaneng Group.
Gezhen Hydropower Plant sells its electricity to Hainan Electric Power Company.
Wenchang Wind Power
Huaneng Wenchang Wind Power Plant (“ ("Wenchang Wind Power”Power") is located in Wenchang City in Hainan Province. Wenchang Wind Power has an installed capacity of 49.551.5 MW and consists of 33 turbines with each capacity of 1.5 MW which commenced operation in 2008.2008, and one turbine with capacity of 2 MW which commenced operation in 2015. We hold 91.8% equity interest in Wenchang Wind Power. We acquired the power plant in October, 2014January, 2015 from Huaneng Group.
Wenchang Wind Power sells its electricity to Hainan Electric Power Company.
Dongfang Photovoltaic
Dongfang Photovoltaic Power Plant ("Dongfang Photovoltaic") is located in Dongfang City in Hainan Province. Dongfang Photovoltaic has an installed capacity of 12 MW which commenced operation in July 2016. We hold 91.8% equity interest in Dongfang Power Plant.
Dongfang Photovoltaic sells its electricity to Hainan Electric Power Company.
Construction Project in Guangxi Province
Distribution Energy Project of Guilin World Tourism City. City. Distribution Energy Project of Guilin World Tourism City was approved by the Development and Reform Commission of Guangxi Autonomous. We hold 100 %100% equity interest in the project. The project is planned to have an installed capacity of 237 MW, consistingconsists of four co-generating units of 42 MW, three dual pressure waste-heat boilers, three condensing turbo-generating units of 21 MW and one back-pressure turbo- generating unit of 6 MW.
Power Plant in Guizhou
Panxian Wind Power
Panxian Wind Power ("Panxian Wind Power") is located at Panxian county of Guizhou Province. It commenced operation in December 2015, with an installed capacity of 24 MW, consisting of 12 wind power turbine of 2 MW each. We hold 100 % equity interest in Panxian Wind Power.
Panxian Wind Power sells its electricity to Guizhou Electric Power Company.
Construction Project in Guizhou Province
Panxian Dapashan Wind Power Project. Panxian Dapashan Wind Power Project was approved by the Energy Administraion of Guizhou Province. We hold 100 % equity interest in the project. The project is planned to have an installed capacity of 48 MW, consists of 24 turbines of 2 MW each. 12 turbines are operational and 12 turbines are currently under construction.
Panxian Jiaoziding Wind Power Project. Panxian Jiaoziding Wind Power Project was approved by the Energy Administraion of Guizhou Province. We hold 100 % equity interest in the project. The project is planned to have an installed capacity of 48 MW, consists of 24 turbines of 2 MW each.
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Power Plant in Singapore
Tuas Power
With a licensed generating capacity of 2,670MW, Tuas Power is one of the three largest power generation companies in Singapore. It currently has an installed operation generating capacity of 2,609MW, comprising of  1,876 MW gas-fired combined cycle generating units, 133 MW of coal-biomass fired steam turbine generating units and 600 MW of oil-fired steam generating unit.
Supply of coal is procured from coal producers in Indonesia via two long-term coal supply contracts with 10 years and 15 years term respectively. Supply of gas is obtained from Pavilion Gas Pte Ltd, Sembcorp Gas Pte Ltd and Shell Gas Marketing Pte Ltd (formally known as BG Singapore Gas Marketing Pte Ltd).BG Singapore Gas Marketing Pte Ltd.  Oil supply, if required, is obtained through the spot market.

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Competition and Dispatch
All power plants in China are subject to dispatch conducted by various dispatch centers. A dispatch center is required to dispatch electricity pursuant to the Regulations on the Administration of Electric Power Dispatch Networks and Grids, issued by the State Council with effect from November 1, 1993, and in accordance with its agreements with power plants subject to its dispatch. Power generation companies are also required to enter into on-grid dispatch agreements with power grid companies. As a result, there is competition for favorable dispatch treatment in the PRC electric power industry, especially during the off-peak load periods. More efficient power plants usually operate at higher output than less efficient power plants. We believe that in order to increase system stability, large and efficient power plants such as ours will be preferred as base load plants to generate power for the grids to which they connect. We believe that our dispatch arrangements with the local power corporations and dispatch centers, superior quality equipment, lower coal consumption rate, higher efficiency of plant operation, lower emission levels and larger capacity represent competitive advantages in the markets in which we operate.
Since 2002, we have been facing competition from four other major power generation groups: China Power Investment Corporation, China Huadian Power Corporation, China Guodian Power Corporation and China Datang Power Corporation, which were created following the break-up of the former State Electric Corporation in 2002. Although we were not affected by this reform measure, as we have developed good working relationship with the dispatch centers and the relevant government departments in the areas where our power plants are located, there can be no assurance that such good working relationships will not be adversely affected as more power generation companies compete for favorable dispatch treatment.
As power generation companies were separated from power grid companies and more competitors entered into the market, the SERC issued the Interim Measures Regarding Promotion of Openness, Fairness and Equitableness of Power Dispatch, requiring power dispatch centers to treat all competitors indiscriminately in respect of dispatch administration and information disclosure, except in cases where safe and stable operation of the electric power system requires different treatment.
In 2008, with the purpose of improving energy usage efficiency, the government implemented an electricity-optimized dispatch policy in Henan Province, Sichuan Province, Jiangsu Province, Guangdong Province and Guizhou Province on a pilot basis, and plans to roll out to others if the trial operation is successful. In addition, as of December 31, 2014, in all regions in which we operate power plants, the government’sgovernment's power administrative departments make differential power generation plan policies with the aim to improve the planned utilization hours of the environment-protecting and energy-saving units. In 2015, the NDRC and China Energy Administration jointly issued the Guidelines on Improving Electric Power Operations and Deepening Clean Energy Generation, which confirms a system that aims to ensure the full-priced acquisitions of renewable energy and ensure that the hours of usage for high-efficiency energy-saving generators be significantly higher than that for coal-fired generators. And the Guidelines also demands within a certain time period an increase of the hours of usage for coal-fired generators, of which the emission level is close to or reaches the cap level of gas turbine.
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In 2016, China National Energy Administration issued Guidelines on Improving Clean Energy Consumption and Distribution in Northern China, Notice on Issuing the Measures for the Administration of the Guaranteed Buyout of Electricity Generated by Renewable Energy Resources, Pilot Program of Local Clean Energy Consumption and Distribution in Gansu, Inner Mongolia and Jilin, and Provisionary Measures for Priority Dispatch of Renewable Peaking Power Generation Units, which require an improvement on clean energy consumption and distribution.  For the purposes of enhancing the dispatch priority of energy that is produced with high-efficient and low emission, China National Energy Adminstration also requested for comments in connection with the proposed Measures for the Administration of the Guaranteed Buyout of Electricity Generated by Nuclear Power, Guildance on High-efficiency, Low Emission Energy, Guildelines on Prioritizing Utilization and Dispatching and the Announcement on the Orderly Reform on Power Generation and Consumption Planning.
Competition and Dispatch in Singapore
TheFollowing the introduction of LNG into Singapore, power market remains concentrated,new players as well as incumbents have invested in new gas-fired generating capacities to compete in the three largest power generation companies account for approximately 80% of total generating capacity.Singapore electricity market. Tuas Power competes in the NEMS using its portfolio of gas-fired, coal-biomass fired and oil-fired generating units. It was able to achievemaintain a market share of approximately 21.80%21.5% in the NEMS for 2014.2016. Its major competitors include Senoko Energy (formerly Senoko Power) which is owned by a Japanese/French consortium led by Marubeni Group, YTL PowerSeraya that is owned by YTL Group of Malaysia, SembCorp Cogen and Keppel Merlimau Cogen.Cogen and PacificLight Power Pte Ltd. A new entrant, PacificLight Power Pte Ltd,Tuaspring, entered the market in 2014.2015. Tuas Power’s generating units are relativelyPower's investment in its new with a track record of steady operation and high reliability. The technical and economic parameters of Tuas Power’s units make Tuas Power one of the leaderscombined cycle will allow it to maintain its leadership position in Singapore’sSingapore's power industry.
In the NEMS, power generation companies compete to generate and sell electricity every half-hour by offering their capacity (specifying price/quantity pairs). The EMC, the operator of Singapore’sSingapore's wholesale electricity market, determines the least-cost dispatch quantities and the corresponding market-clearing or spot prices based on the offers made by power generation companies. The spot prices in the NEMS reflect the least-cost market solution for the dispatch of energy and provision of operating reserves. In general, this means that each power generation company that submitted an offer below the spot price will be dispatched, and a power generation company that submitted an offer above the spot price will not be dispatched. The spot price that a power generation company receives is a nodal price, which may vary according to their location on the network. Nodal prices would be higher in areas where highernetwork to reflect the cost of transmission losses are incurred in getting the electricity to the load facilities.
or network constraints.
Environmental Regulation
We are subject to the PRC Environmental Protection Law, the regulations of the State Council issued thereunder, the PRC Law on the Prevention and Treatment of Water Pollution, the PRC Law on the Prevention and Treatment of Air Pollution, the Emission Standard of Air Pollutants for Thermal Power Plants thereunder and the PRC Law on Ocean Environment Protection (collectively the “National"National Environmental Laws”Laws") and the environmental rules promulgated by the Local Governments in whose jurisdictions our various power plants are located (the “Local"Local Environmental Rules”Rules"). According to the National Environmental Laws, the State Environmental Protection Bureau sets national environmental protection standards and local environmental protection bureaus may set stricter local standards. Enterprises are required to comply with the stricter of the two standards.
At present, new projects are subject to the environmental evaluation approval. The project proposal is required to be submitted to the StateMinistry of Environmental Protection Administration (“SEPA”)of PRC for approval.

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Effective July 1, 2003, all power plants in China became subject to the pollutant discharge levy system, pursuant to which discharge fees are levied based on the actual amount of pollutants discharged. As a result, all of our power plants are now required to pay discharge fees in such manner. Since 2008, certain provinces have raised the rates of waste disposal fees. In 2011, 20122014, 2015 and 2013,2016, we paid to the local governments total discharge fees of approximately  RMB530RMB387 million, RMB543RMB311 million and RMB475RMB372 million, respectively.
In 2011, the PRC Government promulgated a New Emission Standards of Air Pollutants for Thermal Power Plants, which implement more stringent standards on discharge of polluting substances by thermal power plants. These restrictive standards govern both the total sulfur dioxide and nitrous oxide emissions from the power
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plant and the emission density of each chimney, and also require thermal power plants to equip all units with denitrification facilities by the end of 2015.
In September 2013, the State Council issued the Air Pollution Prevention Action Plan (the “Plan”"Plan"), setting forth stricter requirements for air pollution prevention and control. Local government departments have released local rules and regulations under the Plan, some of which require higher emission standards than the national ones. Carbon emission trading has been conducted in certain regions on a trial basis and could be gradually introduced to an expanded market in the future. On July 1, 2014, the new pollutants emission standards for thermal power plants and the dust emission standards in key regions will also come into effect.  In September 2014, the NDRC, the Ministry of Environmental Protection and theChina National Energy Administration jointly issued the 2014-2020 Action Plan for Energy Saving, Emission Reduction and Renovation of Coal-fired Generation Units, imposing more strict requirements for efficient and clean development of coal-fired generating plants.
In December 2016, the State Council issued the Comprehensive Work Plan for Conserving Energy and Reducing Emissions for the 13th Five-Year, puting forward new goals and requirements for energy saving and emission reduction.
In order to meet with the requirements of the New Emission Standards, we have installed flue gas desulphurization (“FGD”("FGD") facilities and denitrification facilities with all of our newly constructed generating units. We have also carried out sulfur disposal reform on the existing generating units. As of the end of 2012, we have installed and operated desulphurization facilities on all our existing coal-fired generating units.  By the end of 2014, all coal-fired generating units of the Company have been renovated to include denetrification facilities.
In order to reduce fly ash, we use very high-efficiency electrostatic precipitators and conduct efficiency improvement and renovations according to increasingly strict state and local emission standards. Each power plant is also equipped with a wastewater treatment facility to treat water used by the power plant before it is released into the river or the sea. We pay discharge fees on the basis of measurements made at discharge points of each plant where waste is released. All of the disposal equipment and facilities for sulfur dioxide, fly ash, wastewater, nitrogen oxides, smoke dust and noise in our existing power plants completely satisfy the existing national standards.
We believe we have implemented systems that are adequate to control environmental pollution caused by our facilities. In addition to the measures identified above, each power plant has its own environment protection office and staff responsible for monitoring and operating the environmental protection equipment. The environmental protection departments of the local governments monitor the level of emissions and base their fee assessments on the results of their tests.
We believe our environmental protection systems and facilities for the power plants are adequate for us to comply with the currently effective national and local environmental protection regulations. It is expected that the PRC Government will impose additional and stricter regulations to implement the emission plan which would require additional expenditure in compliance with environmental regulations.
Environmental Regulation in Singapore
Tuas Power’sPower's generation operations are subjectedsubject to Singapore’sSingapore's Environmental Protection and Management Act and Environmental Public Health Act. The former sets out requirements pertaining to control of pollution and management of hazardous substance while the latter focuses mainly on proper waste management.
Tuas Power Station
To address the environmental concerns and regulatory requirements, Tuas Power Station has put in place an environmental management system. All generating units are equipped with pollution control facilities. Stage I steam plant burn low sulfur content fuel oil and employ an electro-precipitator to control sulfur dioxide and particulate emissions. Stage II combined-cycle plants burn natural gas and are fitted with low-nitrogen oxide burners to control nitrogen oxide emissions. Source emission testtests are conducted annually by National Environment Agency (NEA) accredited contractors and the results are submitted to theNEA Pollution Control Department.
75
Tuas Power Station has a dedicated wastewater treatment plant to treat its oily wastewater and process wastewater prior to discharge into the sea. The treatment processes are automated to prevent accidental adverse discharge and critical parameters are monitored on a real-time basis. Trade effluent testing is performed annually and the results are shared with the Pollution Control Department.
Land contamination is prevented through well-designed storage and containment procedures. Specific areas for storage of waste and hazardous substances are designated within the power plant.
Waste generated in Tuas Power Station plants is identified and managed accordingly. Waste with residual value, such as waste oil, is resold to licensed collectors for reuse while other waste is disposed through licensed disposal contractors.

44
Hazardous substances which have potential to cause environmental pollution are controlled within the power plant compound. A-hazardousA hazardous substance permit, issued by the Pollution Control Department, is required to store the hazardous substances in the premises. OperatorsOur personnel who handle these chemicals are competentproperly trained and theour storage concept of thesefacility for hazardous substances isare specifically designed to prevent and mitigate the likelihood and impact of any abnormal release.releases. Regular audits are conducted to ensure these hazardous substances are managed properly and the findings and recommendations for improvements are reported to the Pollution Control Department.
TMUC
TMUC utilisesutilizes an efficient cogeneration process where aboutup to 80% of the useful energy from the plant is used to produce steam for industrial customers and the remaining 20%energy is converted to electricity for internal use and transmission to the national grid. TheIn 2016, the energy split between heat and power is 45% and 55% respectively, and the overall plant system efficiency is up to 70%averaged at 59%.
The TMUC plant is designed to comply with stringent environmental standards set by the local authority. TMUC adopts the circulating fluidized bed boiler technology that enableenables use of high percentage of carbon neutral biomass (palm kernel shell and woodchips) co-fired with clean coal (low sulphur and low ash) to reduce carbon footprint significantly to the same level as oil-fired plant and with lower the sulphur and nitrogen oxides emission. High efficiency bag filters are installed to ensure low particulates emission.
Coal, biomass and ash handling, transfer and storage systems at TMUC are fully enclosed to prevent any fugitive dust during unloading, storage and handling operation. Coal and ash are stored in silo while biomass is stored in enclosed warehouse.
Fly ash and bed ash generated from the CFB boilers are fully recycled and processed for use as value-added construction materials.
Oily wastewater and coal/ash washing wastewater are treated prior to discharge. Online monitoring of oil-in-water and suspended solids (through turbidity meter) are carried out for oily wastewater and coal/ash washing wastewater respectively to prevent accidental discharge.  Chemical/regeneration wastewater is neutralized prior to discharge. Online monitoring of pH is conducted to prevent accidental discharge. Stop-gates are strategically installed at drain to prevent poor quality effluent/water from entering the sea
sea.
Insurance
We currently maintain property all-risks insurance and machinery-breakdown insurance for all of our power plants, and construction all-risks insurance or erection all-risks insurance for all of our newly built and expansion projects as well as large-scaled upgrading projects. Our current insurance coverage on our property, plant and equipment (including construction all-risk insurance) is mainly maintained with Yongcheng Property and Casualty Insurance Company, and co-insured by PICC Property and Casualty Company Ltd. and China Pacific Property Insurance Co., Ltd., which amounted to approximately RMB298RMB412.93 billion. In 2014,2016, we renewed the liabilities insurance for our directors and officers with a coverage of US$10 million.
76
We do not maintain any third-party liability insurance to cover claims in respect of bodily injury or property or environment damage arising from accidents on our property or relating to our operation other than the third-party additional risk insurance included in construction all-risk insurance or erection all-risk insurance. We do not usually carry business interruption insurance either, which is not customarily carried by power companies in the PRC. We believe that our insurance coverage is adequate and is standard for the power industry in China. Please refer to the section entitled “Risk"Risk factors – Risks relating to our business and the PRC’sPRC's power industry – Operation of power plants involves many risks and we may not have enough insurance to cover the economic losses if any of our power plant’splant's ordinary operation is interrupted.”
"
Tuas Power purchases key insurance policies, such as industrial all-risks insurance business-interruption(including business interruption insurance productcoverage), public and publicproducts liability insurance, directors’directors' and officers’officers' liability insurance, and pollution legal liability insurance. The insured value under industrial all-risks is S$2.72 billion. For the Tembusu Multi-Utilities Complex project, the owner-controlled insurance program covers erection/ construction all-risks insurance with delay in start-up, third party liability insurance and marine cargo insurance. Total insured value under the industrial all-risks insurance with delay in start-up.is US$4.5 billion for 2017.
ITEM 4A    Unresolved Staff Comments
ITEM 4AUnresolved Staff Comments
None.
ITEM 5   Operating and Financial Reviews and Prospects
None
ITEM 5Operating and Financial Review and Prospects
A.A.            General
The principal activities of the Company are investment, construction, operation and management of power plants. The Company provides stableconsistent and reliable electricity supply to customers through grid operators where theits operating plants are located. The Company is committed to scientific development through increasing economic efficiency, enhancing returns for shareholders, conserving resources and protecting the environment. The Company also attaches importance to social responsibilities and makes active effortscontribution to buildthe building of a harmonious society.

45
Since its incorporation, the Company has continued to expand its operatingoperational scale. The Company has been thea leader in its industry onin terms of competitiveness, resourcesresource utilization efficiency and environmental protection. The Company is Asia’sAsia's largest listed power producer.producer and China's most dynamic power generator. Its power generation operations are widely located with coverage in the Northeast China Grid, the Northern China Grid, the Northwest China Grid, the Eastern China Grid, the Central China Grid, the Southern China Grid, and the overseas coveragemarket in Singapore.
Looking back in 2014,2016, with the strong support offrom its shareholders and the employees, of the Company made active and concerted efforts in responseto respond to the changes in power, coal and capital markets by expanding overseas markets,market share, improving marketing analysis and enhancing internal management with a focusfocuses on key operations, thorough planning and sound controls.internal control. These efforts have contributed to the growth of the Company in various aspects in 2014. During 2014,2016. Throughout 2016, the Company maintained its leading position in major technological and economic indexesindicators and utilization hours through safe production and active marketing activities. It also maintained a leading position in utilization hours in most of the area, where the Company’s coal-fired power plants are located. Its fuel management was strengthened fuel costs were considerably reduced, and financial costs were effectively controlled. Marked improvement was noticeable in the Company’sCompany's growth quality because of its active power generation restructuringreorganizing efforts. The Company has also made new developments in energy saving, ultra-low emission and technological renovation, diligently fulfilling its social responsibilities as a reliable provider of sufficient, stable and clean energyenvironmentally-friendly power to the society.
Critical accounting policies
The Company and its subsidiaries have identified the policies below as critical to our business operations and the understanding of our results of operations. The impact of and any associated risks related to these policies on the business operations are discussed throughout the Operating and Financial ReviewReviews and Prospects where such policies affect our reported and expected financial results. For a detailed discussion on the application of these and other accounting policies, see Note 2 to the Financial Statements in Item 18 of this Annual Report on Form 20-F.
77
Note that our preparation of this Annual Report on Form 20-F requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amount of revenue and expenses during the reported periods. There can be no assurance that actual results will not differ from those estimates.
Depreciation of property, plant and equipment
Depreciation of property, plant and equipment is provided based on book value of assets less estimated residual value over estimated useful life using a straight-line method. For the impaired property, plant and equipment, depreciation is provided based on book value after deducting the impairment provision over estimated useful life of assets. The estimated useful lives are as follows:
 20142016
Dam8 – 50 years
Port facilities20 – 40 years
Buildings8 – 30 years
Electric utility plant in service5 – 30 years
Transportation facilities8 – 27 years
Others5 – 14 years
Where parts of an item of property, plant or equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. At the end of each year, the Company and its subsidiaries review the estimated useful life, residual value and the depreciation method of the property, plant and equipment and make adjustment when necessary.

46
Useful life of power generation license
The Company and its subsidiaries acquired the power generation license as part of the business combination with Tuas Power. The power generation license is initially recognized at fair value at the acquisition date. The license has an indefinite useful life and is not amortized. The assessment that the license has an indefinite useful life is based on the expected renewal of power generation license without significant restriction and cost, together with the consideration on related future cash flows generated and the expectation of continuous operations. It is tested annually for impairment and carried at cost less accumulated impairment loss. Useful life of the power generation license is reviewed by the Company and its subsidiaries each financial period to determine whether events and circumstances continue to support the indefinite useful life assessment.
Impairment of non-financial assets
The carrying amounts of property, plant and equipment, intangible assets with definite useful lives, land use rights, mining rights and long-term equity investments not accounted for as financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’sasset's recoverable amount is estimated. Goodwill and indefinite-lived intangible assets are tested for impairment annually regardless of whether there are indications of impairment or more frequently if events or changes in circumstances indicate a potential impairment. An impairment loss is recognized if the carrying amount of an asset or cash-generating unit (“CGU”("CGU") exceeds its recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less cost to sell. For impairment testing, assets are grouped together into the smallest group of assets that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.
Subject to an operating segment ceiling test, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes.
78
Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
Impairment losses are recognized in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs of disposal (if measurable) or value in use (if determinable).
An impairment loss in respect of goodwill is not reversed. Except for goodwill, all impaired non-financial assets are subject to review for possible reversal of impairment at each reporting date. A reversal of an impairment loss is limited to the asset’sasset's carrying amount that would have been determined had no impairment loss been recognized in prior year. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized.
Deferred income tax
Newly adopted
       Deferred income tax assets and liabilities are recognized based on the differences between tax bases of assets and liabilities and respective book values (temporary differences). For deductible tax losses or tax credit that can be brought forward in accordance with tax law requirements for deduction of taxable income in subsequent years, it is considered as temporary differences and related deferred income tax assets are recognized. No deferred income tax liability is recognized for temporary difference arising from initial recognition of goodwill. For those temporary differences arising from initial recognition of an asset or liability in a non-business combination transaction that affects neither accounting policiesprofit nor taxable profit (or deductible loss) at the time of the transaction, no deferred income tax asset and liability is recognized. The temporary differences relating to investments in subsidiaries to the extent that, in the case of taxable differences, the Company and its subsidiaries control the timing of the reversal and it is probable that the differences will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future.

       The Company and its subsidiaries recognize deferred income tax assets to the extent that it is probable that taxable profit will be available to offset the deductible temporary difference, deductible tax loss and tax credit.
 
                At the end of reporting period, deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or liability is settled.

The following new amendmentscarrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to standardsthe extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available.

                Deferred income tax assets and one interpretationdeferred income tax liabilities are adopted foroffset when meeting all the first time for the financial year beginning January 1, 2014.conditions below:
 
·(1)
Amendments to IFRS 10, IFRS 12 and IAS 27, ‘Investment entities’. The amendments provide consolidation relief to those parents which qualify to be an investment entity as defined in the amended IFRS 10. Investment entities are required to measure their subsidiaries at fair value through profit or loss. These amendments do not have an impact on the consolidated financial statements as the Company and its subsidiaries do not qualifyhave the legal enforceable right to be investment entities.
offset current income tax assets and current income tax liabilities;
 
·(2)
Amendments to IAS 32, ‘Financial instruments: Presentation – Offsetting financialDeferred income tax assets and financial liabilities’ clarifydeferred income tax liabilities are related to the offsetting criteria in IAS 32 . The amendments do not have any material impact onincome tax levied by the consolidated financial statements as they are consistent with the policies already adopted bysame tax authority of the Company and its subsidiaries.
·
Amendments to IAS 36, ‘Impairment of Assets – Recoverable amount disclosures for non-financial assets’ modify the disclosure requirements for impaired non-financial assets. Among them, the amendments expand the disclosures required for an impaired asset or CGU whose recoverable amount is based on fair value less costs of disposal. The amendments do not have any material impact on the consolidated financial statements.
·
Amendments to IAS 39, ‘Financial Instruments: Recognition and Measurement - Novation of derivatives and continuation of hedge accounting’ provide relief from discontinuing hedge accounting when novation of a derivative designated as a hedging instrument meets certain criteria. The amendments do not have any material impact on the consolidated financial statements as the Company and its subsidiaries have not novated any of its derivatives.
47Principal accounting policies

·
IFRIC 21 ‘Levies’ provides guidance on when a liability to pay a levy imposed by a government should be recognized. The amendments do not have any material impact on the consolidated financial statements as the guidance is consistent with the Company and its subsidiaries’ existing accounting policies.
The IASB has issued a new standard and a number of amendments to IFRSs that are first effective for the current accounting period of the Company and its subsidiaries. None of these new standard or developments have had a material effect on how the Company and its subsidiaries’ results and financial position for the current or prior periods have been prepared or presented. The Company and its subsidiaries have not applied any new standard or interpretation that is not yet effective for current accounting period.
New accounting pronouncements
For a detailed discussion of new accounting pronouncements, see Note 2(ac)2(ab) to the Financial Statements.
B.B.           Operating results
Our financial statements are prepared under IFRS as issued by IASB. The following management’smanagement's discussion and analysis is based on the financial information prepared under IFRS.
Year ended December 31, 20142016 compared with year ended December 31, 20132015
  For the Year Ended December 31,    
  2016  2015  
Increased/
(Decreased)
 
  RMB'000  RMB'000  % 
Operating revenue  113,814,236   128,904,873   (11.71)
Tax and levies on operations  (1,177,818)  (1,157,760)  1.73 
Operating expenses            
Fuel  (56,617,542)  (59,242,367)  (4.43)
Maintenance  (4,343,349)  (4,556,361)  (4.68)
Depreciation  (14,815,620)  (14,411,632)  2.80 
Labor  (8,043,406)  (7,751,551)  3.77 
Service fees on transmission and transformer facilities of HIPDC  (138,038)  (140,771)  (1.94)

  
For the Year Ended December 31,
    
  
2014
  
2013
  
Increased/ (Decreased)
 
  RMB’000  RMB’000   % 
Operating revenue  125,406,855   133,832,875   (6) 
Tax and levies on operations  (932,485)  (1,043,855)  (11) 
Operating expenses            
Fuel  (64,762,908)  (73,807,817)  (12) 
Maintenance  (3,729,912)  (3,856,975)  (3) 
Depreciation  (11,646,683)  (11,293,522)  3 
Labor  (6,259,588)  (5,762,884)  9 
Service fees on transmission and transformer facilities of HIPDC  (140,771)  (140,771)  0 
Purchase of electricity  (5,055,076)  (4,955,603)  2 
Others  (7,604,790)  (8,860,409)  (14) 
Total operating expenses  (99,199,728)  (108,677,981)  (9) 
             
Profit from operations  25,274,642   24,111,039   5 
             
Interest income  159,550   170,723   (7) 
Financial expenses, net            
Interest expense  (7,814,114)  (7,787,472)  0 
Exchange (loss) / gain and bank charges , net  (9,492)  94,109   (110) 
Total financial expenses, net  (7,823,606)  (7,693,363)  2 
Share of profits less losses of associates and joint ventures  1,315,876   615,083   114 
Gain / (loss) on fair value changes of financial assets / liabilities  42,538   (5,701)  846 
Other investment income  80,580   224,908   (64) 
Profit before income tax expense  19,049,580   17,422,689   9 
Income tax expense  (5,487,208)  (4,522,671)  21 
Net Profit  13,562,372   12,900,018   5 
Attributable to:            
-Equity holders of the Company  10,757,317   10,426,024   3 
-Non-controlling interests  2,805,055   2,473,994   13 
   13,562,372   12,900,018   5 
4879

  For the Year Ended December 31,    
  2016  2015  
Increased/
(Decreased)
 
  RMB'000  RMB'000  % 
Purchase of electricity  (3,066,415)  (3,581,517)  (14.38)
Others  (7,234,308)  (8,919,988)  (18.90)
Total operating expenses  (94,258,678)  (98,604,187)  (4.41)
             
Profit from operations  18,377,740   29,142,926   (36.94)
Interest income  147,063   160,723   (8.50)
Financial expenses, net            
Interest expense  (6,817,526)  (7,945,734)  (14.20)
Exchange (loss)/gain and bank charges , net  (250,076)  (24,336)  927.60 
Total financial expenses, net  (7,067,602)  (7,970,070)  (11.32)
Share of profits less losses of associates and joint ventures  1,298,889   1,525,975   (14.88)
Loss on fair value changes of financial assets / liabilities  (12,986)  (16,742)  (22.43)
Other investment income  1,070,034   115,238   828.54 
Profit before income tax expense  13,813,138   22,958,050   (39.83)
Income tax expense  (3,465,151)  (5,698,943)  (39.20)
Net Profit  10,347,987   17,259,107   (40.04)
Attributable to:            
-Equity holders of the Company  8,520,427   13,651,933   (37.59)
-Non-controlling interests  1,827,560   3,607,174   (49.34)
ForTotal power generated by the Company's domestic operating power plans for the year ended December 31, 2014, the Company’s total power generation on a consolidated basis amounted to 304.869 billion kWh, of which, the domestic power generation of the Company amounted to 294.388313.690 billion kWh, representing a decrease of 7.27%2.13% year-on-year. TotalThe electricity sold by the Company’s power plants within China was 277.538amounted to 295.800 billion kWh, representing a decrease of 7.49% over the same period last year.
2.05% year-on-year. The main reasons for the decrease in the Company’sCompany's power output are as follows: firstly, China’s economicgeneration for the year was mainly attributable to the following reasons: (i) the installed capacity growth slowed in 2014 andoutpaced the growth of the nationwide power consumption while the utilization hours of coal-fired power generation units saw a year-on-year fall; (ii) the growth nationwide declined correspondingly. Secondly,of the commencementCompany's installed capacity was below the regional average; and (iii) the launch of operationnew nuclear power generators in areas, including Liaoning, Guangdong, Fujian and Hainan provinces, had a relatively great impact on the output of a number of ultra-high voltage west-to-eastthe coal-fired power transmission lines in China reduced the power market for thermal power generating units in the southeast coastal regions where a high proportion of thermal power generating units owned the Company are located. Thirdly, most of China experienced a sharp decrease of temperature during the summer in 2014 compared with the same period of 2013 and an increase in rainfall, thus resulting in a lower demand for electricity and a significant decline in power output compared with the higher number registered in 2013. Fourthly, the commencement of operation of many hydropower generating units in the southwest region as well as the abundant water supply in the same region contributed to a significant increase in hydro-power generations, which has reduced the market for thermal power generating units in Yunnan Province as well as Shanghai, Zhejiang, Jiangsu and Guangdong. Meanwhile, power output from thermal power generating units in Liaoning and Fujian were affected by the commencement of operation of large nuclear generatinggeneration units in these two provinces.regions.
The annual average utilization hours of the Company's domestic power plants reached 3,921 hours. The utilization hours of coal-fired power generating unit was 4,107 hours. In most of the areas where the Company's coal-fired power plants are located, the utilization hours of the Company was in a leading position .
The power generation of the Company’sCompany's domestic power plants for the year ended December 31, 20142016 is listed below (in billion kWh):
Domestic Power Plant
 
Power generation
 in 2014
  
Power generation
in 2013
  
Change
Liaoning Province         
Dalian  6.423   6.132   4.74%
Dandong  3.197   3.115   2.64%
Yingkou  7.980   7.321   9.00%
Yingkou Co-generation  3.043   3.329   (8.58)%
Wafangdian Wind Power  0.099   0.111   (11.21)%
Suzihe Hydropower  0.040   0.027   48.51%
Changtu Wind Power  0.127   0.093   37.04%
Inner Mongolia Autonomous Region            
Huade Wind Power  0.217   0.226   (4.14)%
Hebei Province            
Shang’an  12.836   13.633   (5.85)%
Kangbao Wind Power  0.085   0.080   6.39%
Gansu Province            
Pingliang  9.129   10.144   (10.00)%
Jiuquan Wind Power  0.838   0.887   (5.49)%
Anbei Wind Power Third  0.039   –   – 
Beijing Municpality            
Beijing Co-generation  4.456   4.686   (4.92)%
Beijing Co-generation CCGT  4.051   3.980   1.79%
Tianjin Municipality            
Yangliuqing Co-genertion  6.572   6.851   (4.07)%
Lingang CCGT Co-generation  0.126   –   – 
Shanxi Province            
Yushe  2.608   2.951   (11.62)%
Zuoquan  5.999   6.682   (10.22)%
Shandong Province            
Dezhou  15.348   15.405   (0.37)%
Jining  5.096   5.050   0.91%
Xindian  3.303   3.254   1.49%
Weihai  11.771   11.361   3.61%
Rizhao Phase II  8.236   7.775   5.93%
Zhanhua Co-generation  1.674   1.761   (4.93)%
Henan Province            
Qinbei  20.366   21.927   (7.12)%
Jiangsu Province            
Nantong  6.752   7.951   (15.08)%
Nanjing  3.154   3.678   (14.24)%
Taicang  11.174   11.445   (2.37)%
Huaiyin  6.486   7.244   (10.47)%
Jinling CCGT  1.895   2.400   (21.03)%
Jinling Coal-fired  11.567   12.811   (9.71)%
Jinling Co-generation  1.358   1.115   21.81%
Rudong Wind Power  0.113   0.012   839.76%
Qidong Wind Power  0.379   0.350   8.33%
Shanghai Municipality            
Shidongkou I  5.665   7.875   (28.06)%
Shidongkou II  5.190   6.708   (22.63)%
Shidongkou Power  6.018   7.603   (20.85)%
Shanghai CCGT  2.097   1.974   6.23%
Chongqing Municipality            
Luohuang  10.862   14.278   (23.93)%
Liangjiang CCGT  0.246   –   – 

Domestic Power Plant Power generation in 2016  Power generation in 2015  Change (%) 
Liaoning Province
         
Dalian  5.656   5.921   (4.47)
Dandong  2.920   3.050   (4.26)
Yingkou  7.872   7.875   (0.04)
Yingkou Co-generation  3.028   3.085   (1.84)
Wafangdian Wind Power  0.098   0.094   4.37 
Suzihe Hydropower  0.034   0.051   (32.36)
Changtu Wind Power  0.199   0.196   1.45 
Dandong Photovoltaic  0.009  －  － 
Yingkou Co-generation Photovoltaic  0.0071  －  － 
Inner Mongolia Autonomous Region
            
Huade Wind Power  0.218   0.193   12.82 
Hebei Province
            
Shang’an  12.931   12.519   3.29 
Kangbao Wind Power  0.116   0.097   19.68 
Kangbao Photovoltaic  0.016  －  － 
Gansu Province
            
Pingliang  8.443   6.020   40.24 
Jiuquan Wind Power  0.410   0.438   (6.32)
Jiuquan II Wind Power  0.443   0.444   (0.24)
Yumen Wind Power  0.169   0.150   12.61 
Yigang Wind Power  0.251   0.001   19,611.99 
Beijing Municpality
            
Beijing Co-generation  3.406   3.924   (13.19)
Beijing Co-generation CCGT  4.136   4.159   (0.54)
Tianjin Municipality
            
Yangliuqing Co-generation  5.280   5.427   (2.71)
Lingang Co-generation CCGT  1.973   1.966   0.35 
Shanxi Province
            
Yushe  2.642   2.750   (3.92)
Zuoquan  5.519   5.625   (1.89)
Dongshan CCGT  2.546   1.139   123.53 
Shandong Province
            
Dezhou  13.749   14.388   (4.44)
Jining  4.733   4.893   (3.27)
Xindian  3.214   3.158   1.77 
Weihai  10.179   10.894   (6.56)
Rizhao Phase II  7.877   7.499   5.04 
4980


Domestic Power Plant Power generation in 2016  Power generation in 2015  Change (%) 
Zhanhua Co-generation  1.602   1.503   6.59 
Henan Province
            
Qinbei  17.429   18.710   (6.85)
Luoyang Co-generation  2.841   1.485   91.3 
Luoyang Yangguang  0.742  －  － 
Mianchi Co-generation  0.422  －  － 
Guoji Wind Power
  
0.019
  －  － 
Jiangsu Province
            
Nantong  6.129   6.167   (0.62)
Nanjing  3.001   2.736   9.68 
Taicang  10.507   10.081   4.22 
Huaiyin  5.570   5.813   (4.17)
Jinling CCGT  1.717   2.581   (33.49)
Jinling Coal-fired  12.766   11.728   8.85 
Jinling Co-generation  1.801   1.711   5.26 
Rudong Wind Power  0.101   0.095   6.23 
Qidong Wind Power  0.394   0.340   15.80 
Suzhou Thermal Power  0.784   0.789   (0.67)
Nanjing Thermal Power  0.168  －  － 
Rudong Offshore Wind Power  0.002  －  － 
Luhe Wind Power  0.001  －  － 
Tongshan Wind Power  0.082  －  － 
Shanghai Municipality
            
Shidongkou I  4.971   5.060   (1.76)
Shidongkou II  5.385   5.252   2.53 
Shidongkou Power  6.133   6.039   1.56 
Shanghai CCGT  1.649   1.775   (7.11)
Chongqing Municipality
            
Luohuang  8.154   9.767   (16.51)
Liangjiang CCGT  1.862   0.938   98.50 
Zhejiang Province
            
Yuhuan  18.469   18.957   (2.57)
Changxing  5.702   5.438   4.85 
Tongxiang CCGT  0.518   0.270   91.87 
Changxing Photovoltaic  0.009   0.008   13.87 
Hongqiao Photovaltaic  0.012  －  － 
Hunan Province
            
Yueyang  7.444   7.859   (5.28)
Xiangqi Hydropower  0.334   0.363   (7.94)
Subaoding Wind Power  0.328   0.318   3.03 
Guidong Wind Power  0.209   0.069   203.56 
81

Domestic Power Plant
  
Power generation
in 2014
   
Power generation
in 2013
   Change
Zhejiang Province         
Yuhuan  21.771   24.819   (12.28)%
Changxing  0.488   –   – 
Tongxiang CCGT  0.171   –   – 
Si’an Photovoltaic  0.000   –   – 
Hunan Province            
Yueyang  8.553   9.958   (14.10)%
Xiangqi Hydropower  0.310   0.267   16.16%
Subaoding Wind Power  0.020   –   – 
Hubei Province            
Enshi Maweigou Hydropower  0.042   0.045   (7.41)%
Jiangxi Province            
Jinggangshan  9.244   9.702   (4.72)%
Jianggongling Wind Power  0.001   –   – 
Fujian Province            
Fuzhou  13.925   14.666   (5.05)%
Guangdong Province            
Shantou  5.200   5.614   (7.37)%
Haimen  12.270   18.105   (32.20)%
Haimen Power  6.152   –   – 
Yunnan Province            
Diandong Energy  5.953   7.527   (20.92)%
Yuwang Energy  3.651   4.553   (19.82)%
Wenbishan Wind Power  0.022   –   – 
Total  294.388   317.481   (7.27)%

Domestic Power Plant Power generation in 2016  Power generation in 2015  Change (%) 
Hubei Province
         
Enshi Maweigou Hydropower  0.178   0.063   182.12 
Jingmen Thermal Power  2.335   1.930   20.99 
Yingcheng Thermal Power  1.418   1.062   33.50 
Wuhan Power Plant  9.850   10.027   (1.77)
Dalongtan Hydropower  0.116   0.086   35.18 
Jieshan Wind Power  0.188   0.054   248.65 
Jiangxi Province
            
Jinggangshan  8.095   8.993   (9.98)
Jianggongling Wind Power  0.107   0.090   19.14 
Ruijin Power  3.060   3.289   (6.95)
Anyuan Power  6.179   3.015   104.93 
Anhui Province
            
Chaohu Power Plant  5.617   5.847   (3.94)
Hualiangting Hydropower  0.140   0.129   8.66 
Huaining Wind Power
  0.089   －   － 
Fujian Province
            
Fuzhou  7.677   10.892   (29.52)
Guangdong Province
            
Shantou  4.476   4.550   (1.62)
Haimen  5.326   7.631   (30.20)
Haimen Power  7.643   8.770   (12.86)
Shantou Photovoltaic  0.007  －  － 
Yunnan Province
            
Diandong Energy  3.317   3.994   (16.96)
Yuwang Energy  0.268   1.585   (83.12)
Fuyuan Wind Power  0.299   0.147   103.21 
Guizhou Province
            
Panxian Wind Power  0.045   0.0003   16515.56 
Hainan Province
            
Haikou Power Plant  4.842   7.047   (31.30)
Dongfang Power Plant  6.687   9.081   (26.37)
Nanshan Power Plant  0.127   0.248   (48.64)
Gezhen Hydropower  0.164   0.093   75.99 
Wenchang Wind Power  0.101   0.099   1.93 
Dongfang Photovoltaic  0.008  －  － 
Total  3,136.90   320.529   (2.13)
 
In 2014,For the year ended December 31, 2016, the accumulated power generated bygeneration of Tuas Power Ltd., the Company's wholly owned subsidiary in Singapore, operations accounted for 21.8%a market share of the total power generated21.5% in Singapore, representing an increasea decrease of 1.2 percentage points from 2013.
0.2% compared to the same period last year of 21.7%.
In respect of the tariff, the Company’sCompany's average tariff of domestic power plants for the year ended December 31, 20142015 was RMB454.95RMB396.60 per MWh, representing an increase of RMB0.57perdown by RMB46.66 per MWh from the year ended December 31, 2013.2015. SinoSing Power’sPower's average tariff for 20142016 was RMB920.74RMB514.00 per MWh, representing a decrease by 7.42%of 17.88% from the same period last year.
In respect of fuel cost,costs, the decrease of coal price and effective cost controls of the Company contributed to reduced fuel costs of the Company. Compared to last year,with 2015, the unitCompany's fuel cost per unit of power sold of the Company’s domestic power plantsplant decreased by 7.96%1.76% to RMB 201.19RMB170.62 per MWh.
Combining the foregoingforgoing factors, the operating revenue of the Company and its subsidiaries for the year ended December 31, 2014 remained generally2016, the same as last year at approximately RMB125.407Company recorded an operating revenue of RMB113.814 billion, representing a decrease of 6.30%11.71% from RMB 133.833RMB128.905 billion of last year. Foryear, and the year ended December 31, 2014, the Company and its subsidiaries recorded a net profit attributable to equity holders of the Company of RMB10.757RMB8.520 billion, representing an increasea decrease of 3.18%37.59% from the profitRMB13.652 billion of RMB 10.426 billion for the year ended December 31, 2013.
last year.
For the year ended December 31, 2014,2016, the net profit attributable to equity holders of the Company from domestic power plantsoperations was RMB 10.629RMB8.760 billion, representing an increasea decrease of RMB 0.316RMB4.951 billion compared to RMB10.313from RMB13.711 billion for the same period last year. The increasedecrease was primarily attributable to the combined effectdecreases of on-grid tariff for coal-fired power generator administered by the NDRC, the decreases of domestic power generation of the decrease of coal market priceCompany and the decreaseincrease of volume of market power generation.
For the year ended December 31, 2014, the profittransactions. The net loss attributable to equity holders of the Company from its operations in Singapore operations was RMB 0.128 billion, increased by RMB 0.015 billionRMB240 million, representing an increase of RMB181 million compared to the same period last year.
Operating revenue
and tax and levies on operations
Operating revenue mainly consists of revenue from powerelectricity sold. For the year ended December 31, 2014,2016, the consolidated operating revenue of the Company and its subsidiaries amounted to RMB125.407RMB113.814 billion, representing a decrease of 6.30%11.71% from RMB133.833RMB128.905 billion for the year ended December 31, 2013.2015. The operating revenue from domestic operations of the Company decreased by RMB8.557RMB13.706 billion over the same period of last year, while the operating revenue generated from newly acquired entities and newly operated generating units was RMB3.525 billion.
In 2016, the operating revenue from the operations of the Company in Singapore decreased by RMB1.385 billion over the same period of last year, which iswas mainly because of reduced power generations. The operation of new generation capabilities contributed RMB1.655 billionattributed to the consolidated revenuecontinued oversupply in the Singapore power and natural gas market, causing continued decline of electricity tariff and a drop of the Company, while the operating revenue generated from existing generating units decreased by RMB10.212 billion.
The operating revenue of Singapore operations increased by RMB0.131 billion for the year ended December 31, 2014 from last year, which is mainly because of increased power output from operation of new generating units and increase of revenue generated from steam sales.

revenue.
5082
The following table sets forth the average tariff rate of the Company’sCompany's power plants, as well as percentage changes from 20132015 to 2014.
  
Average tariff rate (VAT inclusive) (RMB/MWh)
Power Plant 
2014
  
2013
  
Change
Liaoning Province         
Dalian  394.50   407.89   (3.28)%
Dandong  393.06   401.09   (2.00)%
Yingkou  399.33   406.85   (1.85)%
Yingkou Co-generation  399.21   396.96   0.57%
Wafangdian Wind Power  609.68   632.85   (3.66)%
Suzihe Hydropower  330.00   330.00   0.00%
Changtu Wind Power  602.82   605.30   (0.41)%
Inner Mongolia Autonomous Region            
Huade Wind Power  520.00   520.00   0.00%
Hebei Province            
Shang’an  429.39   431.15   (0.41)%
Kangbao Wind Power  538.84   534.47   0.82%
Gansu Province            
Pingliang  322.72   332.16   (2.84)%
Jiuquan Wind Power  520.60   520.60   0.00%
Anbei Third Wind Power  540.00   —   — 
Beijing Municipality            
Beijing Co-generation  699.19   500.06   39.82%
Tianjin Municipality            
Yangliuqing Co-generation  434.28   438.73   (1.01)%
Lingang Co-generation CCGT  —   —   — 
Shanxi Province            
Yushe  391.22   393.37   0.55%
Zuoquan  382.01   389.83   (2.01)%
Shandong Province            
Dezhou  463.36   464.89   (0.33)%
Jining  446.73   455.46   (1.92)%
Xindian  448.55   453.35   (1.06)%
Weihai  461.18   474.38   (2.78)%
Rizhao Phase II  441.59   446.38   (1.07)%
Zhanhua Co-generation  434.71   446.56   (2.65)%
Henan Province            
Qinbei  435.42   437.01   (0.36)%
Jiangsu Province            
Nantong  436.00   435.69   0.07%
Nanjing  436.50   436.35   0.03%
Taicang I  419.19   432.81   (3.15)%
Taicang II  395.38   427.58   (7.53)%
Huaiyin  443.04   449.87   (1.52)%
Jinling Coal-fired  408.24   428.38   4.70%
Jinling Combined-Circle  606.21   585.53   3.53%
Jinling Combined-Cycle Cogeneration  690.00   635.42   8.59%
Qidong Wind Power  555.92   541.34   2.69%
Rudong Wind Power  610.00   610.00   0.00%
Shanghai Municipality            
Shidongkou I  438.21   453.27   3.32%
Shidongkou II  437.54   442.00   (1.01)%
Shanghai CCGT  551.48   486.74   13.30%
Shidongkou Power  449.92   462.02   (2.62)%
Chongqing Municipality            
Luohuang  440.21   448.57   (1.86)%
Liangjiang CCGT  —   —   — 
Zhejiang Province            
Yuhuan  468.71   484.79   (3.32)%
Changxing  431.03   —   — 
Tongxiang Combined-cycle  895.42   —   — 
Hunan Province            
Yueyang  495.31   505.13   (1.94)%
Xiangqi Hydropower  410.00   390.00   5.13%
Subaoding Wind Power  494.00   —   — 
Hubei Province            
Enshi Maweigou Hydropower  366.59   356.96   2.70%
Jiangxi Province            
Jinggangshan  468.92   482.95   (2.91)%
Jianggongling Wind Power  610.00   —   — 
Fujian Province            
Fuzhou  441.83   442.81   (0.22)%
Guangdong Province            
Shantou Coal-fired  529.99   541.39   (2.11)%
Haimen  503.18   514.30   (2.16)%
Haimen Power  479.55   —   — 
Yunnan Province            
Diandong Energy  401.59   371.30   8.16%
Yuwang Energy  395.96   377.41   4.91%
Wenbishan Wind Power  610.00   —   — 
Domestic total  454.95   454.38   0.13%
Singapore            
SinoSing Power  920.74   994.54   (7.42)%
2016.

  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2016  2015  Change (%) 
Liaoning Province
         
Dalian  346.76   375.55   (7.67)
Dandong  352.52   371.45   (5.10)
Yingkou  344.71   378.32   (8.88)
Yingkou Co-generation  331.39   365.04   (9.22)
Wafangdian Wind Power  603.72   598.12   0.94 
Suzihe Hydropower  332.67   329.96   0.82 
Changtu Wind Power  626.09   590.93   5.95 
Dandong Photovoltaic   950.00   —   — 
Yingkon Co-generation Photovoltaic    950.00    —   — 
Inner Mongolia Autonomous Region
            
Huade Wind Power  471.22   520.00   (9.38)
Hebei Province
            
Shang’an  358.48   401.79   (10.78)
Kangbao Wind Power  554.60   538.14   3.06 
Kangbao Photovoltaic  784.95   —   — 
Gansu Province
            
Pingliang  207.63   259.51   (19.99)
Jiuquan Wind Power  367.54   473.12   (22.32)
Jiuquan II Wind Power  402.36   497.75   (19.16)
Yumen Wind Power  390.06   472.01   (17.36)
Yigang Wind Power  447.65   —   — 
Beijing Municipality
            
Beijing Co-generation (Coal-fired)  454.99   480.70   (5.35)
Beijing Co-generation (Combined Cycle)  687.33   959.91   (28.40)
Tianjin Municipality
            
Yangliuqing Co-generation  370.82   416.54   (10.980 
Lingang Co-generation CCGT  726.44   817.57   (11.15)
Shanxi Province
            
Yushe  253.01   334.87   (24.45)
Zuoquan  252.96   333.25   (24.09)
Dongshan CCGT  682.40   703.80   (3.04)
Shandong Province
            
Dezhou  389.78   445.44   (12.50)
Jining  372.57   429.20   (13.19)
Xindian  381.58   432.30   (11.73)
Weihai  382.53   440.45   (13.15)
Rizhao Phase II  372.08   422.33   (11.90)
Zhanhua Co-generation  389.33   424.66   (8.32)
Henan Province
     ��      
Qinbei  354.30   401.65   (11.79)
Luoyang Co-generation  365.91   384.33   (4.79)
5183


  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2016  2015  Change (%) 
Luoyang  Yangguang  316.83   365.10   (13.22)
Mianchi Co-generation  328.10   —   — 
Guoji Wind Power  610.00   —   — 
Jiangsu Province
            
Nantong  407.55   430.98   (5.44)
Nanjing  400.81   453.08   (11.540 
Taicang I  349.31   387.68   (9.90)
Taicang II  349.31   387.68   (9.90)
Huaiyin  433.30   450.81   3.88 
Jinling Coal-fired  348.86   385.24   (9.44)
Jinling Combined-Circle  708.41   712.13   (0.52)
Jinling Combined-Cycle Cogeneration  617.12   760.99   (18.91)
Suzhou Thermal Power  453.42   489.38   (7.35)
Qidong Wind Power  553.91   556.76   (0.51)
Rudong Wind Power  606.24   610.00   (0.62)
Nanjing Thermal Power  445.21   —   — 
Tonngshan Wind Power  610.00   —   — 
Shanghai Municipality
            
Shidongkou I  395.18   435.48   (9.25)
Shidongkou II  380.60   410.35   (7.25)
Shanghai CCGT  382.31   937.13   (59.20)
Shidongkou Power  899.62   427.42   110.48 
Chongqing Municipality
            
Luohuang  376.92   427.84   (11.90)
Liangjiang CCGT  649.74   872.20   (25.51)
Zhejiang Province
            
Yuhuan  403.82   452.99   (10.85)
Changxing  420.54   487.93   (13.81)
Tongxiang Combined-cycle  887.70   1,278.17   (0.55)
Changxing Photovoltaic  1,208.23   1,125.67   7.33 
Hongqiao Photovoltaic  980.00   —   — 
Hunan Province
            
Yueyang  449.87   480.55   (6.38)
Xiangqi Hydropower  610.00   410.00   48.78 
Subaoding Wind Power  610.00   611.72   (0.28)
Guidong Wind Power  404.19   610.00   (33.74)
Hubei Province
            
Enshi Maweigou Hydropower  380.43   379.26   0.31 
Jingmen Thermal Power  378.97   444.09   (14.66)
Yingcheng Thermal Power  392.73   477.26   (17.71)
Wuhan Power  376.53   435.47   (13.53)
Dalongtan Hydropower  376.38   374.80   0.42 
Jieshan Wind Power  610.00   610.00   — 
84


  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2016  2015  Change (%) 
Jiangxi Province
         
Jinggangshan  399.06   443.73   (10.0)
Jianggongling Wind Power  610.00   610.00   — 
Ruijin Power  399.27   441.24   (9.51)
Anyuan Power  400.98   424.63   (5.57)
Anhui Province
            
Chaohu Power  351.24   409.79   (14.29)
Hualiangting Hydropower  385.60   392.89   (1.86)
Huaining Wind Power  610.00   —   — 
Fujian Province
            
Fuzhou  348.95   392.29   (11.05)
Guangdong Province
            
Shantou Coal-fired  464.69   498.01   (6.69)
Haimen  440.21   483.38   (8.93)
Haimen Power  444.53   485.46   (8.43)
Shantou Photovoltaic  980.00   —   — 
Yunnan Province
            
Diandong Energy  513.58   435.58   17.91 
Yuwang Energy  1,394.49   545.42   155.67 
Fuyuan Wind Power  494.71   600.61   (17.63)
Guizhou Province
            
Panxian Wind Power  610.00   —   — 
Hainan Province
            
Haikou  420.45   457.71   (8.14)
Dongfang  420.90   460.53   (8.61)
Nanshan Combined Cycle  672.26   629.32   6.82 
Gezhen Hydropower  400.07   399.78   0.07 
Wenchang Wind Power  609.78   571.95   6.61 
Dongfang Photovoltaic  1,010.00   —   — 
Domestic total  396.60   443.26   (10.53)
Singapore
            
SinoSing Power  514.00   625.88   (17.88)
 
TaxNote: The tariff of combined-cycle power plants in Shanghai and levies on operationsTongxiang consists of on-grid settlement price and capacity subsidy income.
Tax and levies on operations mainly consistsconsist of taxes associated with value-added tax surcharges.surcharges of value added tax. According to relevant administrative regulations, these surcharges include City Construction Tax and Education Surcharges calculated at prescribed percentages on the amounts of the value-added tax paid. For the year ended December 31, 2014,2016, the tax and levieslevis on operations amounted to RMB0.932of the Company and its subsidiaries were RMB1.178 billion, representing a decreasean increase of RMB0.112 billionRMB20 million from RMB1.044RMB1.158 billion for the same period of last year. This is largely dueyear, of which the tax and levies on operations attributable to reduced surcharges resulting from less value added tax payment by the Company during the same period.
newly acquired entities and new generating units accounted for RMB14 million.
Operating expenses
For the year ended December 31, 2014,2016, the total operating expenses of the Company and its subsidiaries was RMB99.200RMB94.259 billion, representing a decrease of 8.72%4.41% from the same period last year.
The operating costs and expenses in domestic power plantsoperations of the Company decreased by RMB9.659RMB2.823 billion, or 10.17%3.19%, from the same period last year, of which the newly acquired entities and the new generating units accounted for RMB2.945 billion; the costs attributable to the existing entities decreased by RMB5.768 billion, which was primarily attributable to the decreased fuel costs for domestic operations in China.
85
The operating expenses from operations in Singapore operations decreased by RMB1.522 billion, or 14.89%, from the same period last year, which was primarily attributablemainly due to the reduced market pricedecline of coal in the PRC.
The operating expenses of Singapore operations increased by RMB0.181 billion, or 1.32%, for the year ended December 31, 2014fuel costs resulting from last year. This is mainly because of the commencement of new generating unit in 2014.
Fuel
decreased natural gas price.
Fuel cost representscosts
Fuel costs account for the majority of the operating expenseexpenses for the Company and its subsidiaries. For the year ended December 31, 2014,2016, fuel costcosts of the Company and its subsidiaries decreased by 12.25%4.43% to RMB64.763RMB56.618 billion from RMB73.808the RMB59.242 billion for the year ended December 31, 2013.2015. The fuel costs from domestic operations of domestic power plantsthe Company and its subsidiaries decreased by RMB9.384RMB1.603 billion, from last year, which was primarily attributable to the lowered coal pricedecreased power generation in the domestic market.
The fuel costs of the newly acquired entities and new generating units were RMB2.043 billion and the fuel costs of the existing generating units decreased by RMB3.646 billion from same period last year. Fuel costs in Singapore decreased by RMB1.022 billion from the same period last year, mainly due to decreased fuel costs arising from decreased natural gas prices. For the year ended December 31, 2014,2016, the average unit price (excluding tax) of natural fuel coal consumed of the Company and its domestic subsidiaries was RMB434.88RMB376.30 per ton, representing a decrease of 6.86%2.73% increase from RMB466.91RMB366.30 per ton for the year ended December 31, 2013.2015. The fuel cost per unit of power sold by the Company’sCompany's domestic coal-fired power plantplants decreased by 7.96%1.76% to RMB170.62/MWh from RMB218.59/RMB173.67/MWh in 2013 to RMB201.19/MWh in 2014.
Fuel costs of Singapore operations was increased by RMB0.339 billion from last year, mainly due to increased fuel costs as a result of increased power generation in Singapore.
2015.
Maintenance
For the year ended December 31, 2014,2016, the maintenance expenses of the Company and its subsidiaries amounted to RMB3.730RMB4.343 billion, representing a decrease of RMB0.127 billionRMB213 million from RMB3.857RMB4.556 billion for the year ended December 31, 2013.2015. The maintenance expenses of the Company's domestic operations decreased by RMB0.128 billion.RMB225 million compared to the same period last year. The maintenance expenses of operations in Singapore operations increased by approximately RMB1 million.
RMB12 million compared to the same period last year.
Depreciation
For the year ended December 31, 2014,2016, depreciation expenses of the Company and its subsidiaries increased by 3.13%2.80% to RMB11.647RMB14.816 billion, from RMB11.294compared to RMB14.412 billion forin the year ended December 31, 2013.2015; the increase is mainly due to the expansion of the Company's operations. The depreciation expenses of domestic operations increased by RMB397 million compared to the same period last year, of which the depreciation costs incurred by the newly acquired entities and new generating units was RMB605 million. The depreciation expenses of the new generation units were RMB0.186 billion.
operations in Singapore increased by RMB7 million compared to the same period last year.
Labor
Labor costs consist of salaries to employees and contributions payable for employees’employees' housing fund,funds, medical insurance, pension and unemployment insurance, as well as training costs and others.costs. For the year ended December 31, 2014,2016, the labor costs of the Company and its subsidiaries amounted to RMB6.260RMB8.043 billion, representing an 8.62% increase of RMB291 million from RMB5.763RMB7.752 billion for the year ended December 31, 2013.2015. This is mainly attributable to the operation of new generation unitslabor costs of the Company, increase of mandatory social insurance contribution,newly acquired entities and new generating units, which were RMB164 million. Labor costs for Singapore operations increased by RMB14 million compared to the increase of employees’ performance-related salaries.
same period last year.
Other operating expenses (including electricity power purchase of electricitycosts and service fees paid to HIPDC)
Other operating expenses include environmental protection expenses, land fee, insurance premiums, office expenses, amortization, Tuas Power’sPower's electricity power purchase of electricity, assetscosts, impairment losses, and non-operating expensesgovernment subsidies and net losslosses on disposalsdisposal of property,properties, plant and equipment. For the year ended December 31, 2014,2016, other operating expenses (including electricity power purchase cost of electricity)costs and service fees paid to HIPDC) of the Company and its subsidiaries was RMB12.800RMB10.439 billion, representing a decrease of RMB1.157RMB2.203 billion from RMB13.957RMB12.642 billion for the year ended December 31, 2013.

2015. The other operating expenses from the Company's domestic operations decreased by RMB1.669 billion; other operating expenses of the existing entities decreased by RMB1.650 billion
5286
Other operating expenses from domestic operations ofcompared to the Company decreased by RMB0.843 billion,  due to a subsidy in its amount of RMB0.534 billion from the government, of which RMB0.462 billion was earmarked by Ministry of Finance for Tuas Power and TMUC,same period last year. The impairment loss experienced a decrease of RMB 0.469RMB1.886 billion of asset disposal losses of certain subsidiaries largely due to technical renovations for energy saving and safe production, a decrease of RMB 0.154 billion for pollution discharge fees and expenses for non-maintenance materials such as desulfurization. The combination of the aforementioned factors led to a decrease in operating expenses, nonwithstanding  an increase of RMB0.055 billion from costs of entrusted power generation of certain subsidiaries.  The impairment loss for the Company’s operation in China increased by RMB1.012 billion, mainly duecompared to the impairment of goodwill arisen from the acquisition of Diandong Energy and Diandong Yuwang as well as the assets impairment of Yingkou port.
same period last year.
Other operating expenses of Singapore operations decreased by RMB0.314 billion. The assets impairment in the operations in Singapore decreased by RMB0.347 billionRMB534 million compared to the same period last year. The electricity power purchase cost decreased by RMB523 million compared to the same period last year, which was largely due to the provisiondecreased price of goodwill impairment last year.
electricity in retail business.
Financial expenses
Financial expenses consist of interest expense, bank charges and net exchange differences.
Interest expense
expenses
For the year ended December 31, 2014,2016, the interest expenses of the Company and its subsidiaries were RMB7.814RMB6.818 billion, representing an increasea decrease of 0.35%14.20% from RMB 7.787RMB7.946 billion for the year ended December 31, 2013.2015. The interest expenses from the Company's domestic operations decreased by RMB1.157 billion. The interest expenses from the newly acquired entities and new generating units were RMB303 million and those incurred by the existing entities in China decreased by RMB1.460 billion, which is largely attributable to decreased benchmark interest rate of RMB. The interest expenses of Singapore operations increased by RMB0.049 billion.
RMB29 million compared to the same period last year.
Net exchange differences and bank charges
For the year ended December 31, 2016, the Company and its subsidiaries recorded a net loss of RMB250 million in net exchange losses and bank charges, representing a net loss increase of RMB226 million compared with the net loss of RMB24 million for the year ended December 31, 2015, mainly due to the weakened exchange rate of RMB against U.S. dollar.
The operations in Singapore recorded net gains of RMB50 million from net exchange difference and bank charges, representing a decrease of RMB120 million from the net gains of RMB170 million for the year ended December 31, 2015, mainly due to the strengthened exchange rate of U.S. dollar against Singapore dollar.
Share of profits less losses of associates and joint ventures
For the year ended December 31, 2014,2016, the Company and its subsidiaries registered netshare of profits less losses of RMB9 million in exchange differenceassociates and bank charges,joint ventures was RMB1.299 billion, representing a net decrease of RMB 103 million compared with the net gains of RMB94 million for the year ended December 31, 2013, mainly because of decrease of exchange gain resulting from weaken of exchange rate between Renminbi and U.S. dollar.
The operations in Singapore registered a net gains of RMB50RMB227 million from exchange difference and bank charge, representing an increase of RMB55 millionRMB1.526 billion from the net loss of RMB5 million in the last year, mainly due to the strengthen exchange rate between U.S. dollar and Singapore dollar.
Share ofdecreased profit of associates and joint venturesventures.
Income tax expenses
For the year ended December 31, 2014, the share of profit of associates and joint ventures was RMB1.316 billion, representing an increase of RMB0.701 billion from RMB0.615 billion from last year, mainly due to increased profit from associates and joint ventures.
Income tax expense
For the year ended December 31, 2014,2016, the Company and its subsidiaries recorded an enterpriserecognised income tax expense of RMB5.487RMB3.465 billion, representing an increasea decrease of RMB0.964RMB2.234 billion from RMB4.523RMB5.699 billion for the year ended December 31, 2013. The enterprise income tax expense of domestic operations increased by RMB0.999 billion, which was primarily due to the increase of pre-tax profit.2015. The income tax expense of Singaporeexpenses for the domestic operations decreased by approximately RMB35RMB2.445 billion primarily attributable to the decrease of pre-tax profit.
The income tax expenses of the operations in Singapore increased by RMB211 million.
It is mainly due to RMB204 million of income tax credit granted by Singapore government last year and no such tax credit was granted in the current year.
Net Profit, Profitprofit, net profit attributable to the equity holders of the Company and non-controlling interests
For the year ended December 31, 2014,2016, the Company and its subsidiaries achieved a net profit of RMB13.562RMB10.348 billion, representing an increasea decrease of RMB0.662RMB6.911 billion, or 5.13%40.04% from RMB12.900RMB17.259 billion for the year ended December 31, 2013. For2015; the year ended December 31, 2014, thenet profit attributable to equity holders of the Company was RMB10.757RMB8.520 billion, representing an increasea decrease of RMB0.331RMB5.132 billion from RMB0.426RMB13.652 billion for the year ended December 31, 2013.2015.
87
The net profit attributable to equity holders of the Company from its domestic operations decreased by RMB4.951 billion, mainly contributable to lowered on-grid tariff for coal-fired power generators administered by the NDRC, reduced domestic power generation of the Company and increased by RMB0.316 billion, which was mainly due to the effectvolume of lowered coal market price, which helped to offset the impact of reduced power generation.transactions. The profitnet loss attributable to equity holders of the Company from its operations in Singapore operations was RMB0.128 billion,RMB240 million, representing an increase of RMB0.015RMB181 million from the same period last year.
This was mainly due to commenced operation of many generators during the recent years, which led to the continued oversupply in the Singapore's power and natural gas market and subsequently continued reduction of power tariff and a marked drop in the profitability of the Company's overseas power generation business.
The Company's recorded net profit attributable to non-controlling interests of the Company increased from RMB2.474decreased to RMB1.828 billion for the year ended December 31, 2013 to RMB2.8052016 from RMB3.607 billion for the year ended December 31, 2014. This was2015, mainly attributable to the increasedreduced profit of the Company's non-wholly owned subsidiaries of the Company.
53
subsidiaries.
Year ended December 31, 20132015 compared with year ended December 31, 20122014
  For the Year Ended December 31,    
  2015  2014  
Increased/
(Decreased)
 
  RMB'000  RMB'000  % 
Operating revenue  128,904,873   125,406,855   2.79 
Tax and levies on operations  (1,157,760)  (932,485)  24.16 
Operating expenses            
Fuel  (59,242,367)  (64,762,908)  (8.52)
Maintenance  (4,556,361)  (3,729,912)  22.16 
Depreciation  (14,411,632)  (11,646,683)  23.74 
Labor  (7,751,551)  (6,259,588)  23.83 
Service fees on transmission and transformer facilities of HIPDC  (140,771)  (140,771)  0.00 
Purchase of electricity  (3,581,517)  (5,055,076)  (29.15)
Others  (8,919,988)  (7,604,790)  17.29 
Total operating expenses  (98,604,187)  (99,199,728)  (0.60)
             
Profit from operations  29,142,926   25,274,642   15.31 
Interest income  160,723   159,550   0.74 
Financial expenses, net            
Interest expense  (7,945,734)  (7,814,114)  1.68 
Exchange gain and bank charges , net  (24,336)  (9,492)  156.38 
Total financial expenses, net  (7,970,070)  (7,823,606)  1.87 
Share of profits less losses of associates and joint ventures  1,525,975   1,315,876   15.97 
(Loss) / gain on fair value changes of financial assets / liabilities  (16,742)  42,538   (139.36)
Other investment income  115,238   80,580   43.01 
Profit before income tax expense  22,958,050   19,049,580   20.52 
Income tax expense  (5,698,943)  (5,487,208)  3.86 
Net Profit  17,259,107   13,562,372   27.26 
Attributable to:            
-Equity holders of the Company  13,651,933   10,757,317   26.91 
-Non-controlling interests  3,607,174   2,805,055   28.60 

  
For the Year Ended December 31,
    
  
2013
  
2012
  
Increased/ (Decreased)
 
  RMB’000  RMB’000   % 
Operating revenue  133,832,875   133,966,659   - 
Tax and levies on operations  (1,043,855)  (672,040)  55 
Operating expenses            
Fuel  (73,807,817)  (82,355,449)  (10) 
Maintenance  (3,856,975)  (2,846,521)  35 
Depreciation  (11,293,522)  (11,032,748)  2 
Labor  (5,762,884)  (5,112,484)  13 
Service fees on transmission and transformer facilities of HIPDC  (140,771)  (140,771)  - 
Purchase of electricity  (4,955,603)  (7,101,878)  (30) 
Others  (8,860,409)  (7,747,828)  14 
Total operating expenses  (108,677,981)  (116,337,679)  (7) 
             
Profit from operations  24,111,039   16,956,940   42 
             
Interest income  170,723   175,402   (3) 
Financial expenses, net            
Interest expense  (7,787,472)  (8,897,097)  (12) 
Exchange gain / (loss) and bank charges , net  94,109   (166,778)  (156) 
Total financial expenses, net  (7,693,363)  (9,063,875)  (15) 
Share of profits less losses of associates and joint ventures  615,083   622,358   (1) 
Loss on fair value changes of financial assets / liabilities  (5,701)  (1,171)  387 
Other investment income  224,908   187,131   20 
Profit before income tax expense  17,422,689   8,876,785   96 
Income tax expense  (4,522,671)  (2,510,370)  80 
Net Profit  12,900,018   6,366,415   103 
Attributable to:            
-Equity holders of the Company  10,426,024   5,512,454   89 
-Non-controlling interests  2,473,994   853,961   190 
   12,900,018   6,366,415   103 
54
ForTotal power generated by the Company's domestic operating power plans for the year ended December 31, 2013, the Company’s total power generation on a consolidated basis amounted to 317.481320.529 billion kWh, representing an increase of 8.9% year-on-year. The electricity sold amounted to 301.979 billion kWh, representing an increase of 8.8% year-on-year. Newly acquired entities and newly operated generating units mainly contributed to the power generation growth of the Company.
The annual average utilization hours of the Company's domestic power plants reached 4,147 hours. In most of the areas where the Company's coal-fired power plants are located, the utilization hours of the Company was in a 4.98% increase fromleading position within those areas.
In January 2015, the year ended December 31, 2012.Company completed the acquisition under common control of the subsidiaries of Huaneng Group including Huaneng Hainan Power Inc. ("Hainan Power"), Huaneng Wuhan Power Generation Co., Ltd. ("Wuhan Power"), Huaneng Suzhou Thermal Power Co., Ltd. ("Suzhou Thermal Power"), Enshi Qingjiang Dalongtan Hydropower Development Co., Ltd. ("Dalongtan Hydropower") and Huaneng Hualiangting Hydropower Co., Ltd. ("Hualiangting Hydropower"), and the subsidiaries of HIPDC including Huaneng Chaohu Power
88
Generation Co., Ltd. ("Chaohu Power"), Huaneng Ruijin Power Generation Co., Ltd. ("Ruijin Power"), Huaneng Anyuan Power Generation Co., Ltd. ("Anyuan Power"), Huaneng Jingmen Thermal Power Co., Ltd. ("Jingmen Thermal Power") and Huaneng Yingcheng Thermal Power Co., Ltd. ("Yingcheng Thermal Power") (collectively, the "Newly Acquired Entities"). The increaseaforementioned entities were included in the Company’s power generation was mainly attributable to the Company efforts to restructure its power generation processes.
consolidated financial statements.
The power generation of the Company’sCompany's domestic power plants for the year ended December 31, 20132015 is listed below (in billion kWh):

Domestic Power Plant
 
Power generation
in 2013
  
Power generation
in 2012
  
Change
Liaoning Province         
Dalian  6.132   5.980   2.54%
Dandong  3.115   3.202   (2.72)%
Yingkou  7.321   7.867   (6.94)%
Yingkou Co-generation  3.329   3.337   (0.24)%
Wafangdian Wind Power  0.111   0.102   8.82%
Suzihe Hydropower  0.027   0.013   107.69%
Changtu Wind Power  0.093   0.006   1,450.00%
Inner Mongolia Autonomous Region            
Huade Wind Power  0.226   0.203   11.33%
Hebei Province            
Shang’an  13.633   14.265   (4.43)%
Kangbao Wind Power  0.080   0.062   29.03%
Gansu Province            
Pingliang  10.144   9.214   10.09%
Jiuquan Wind Power  0.887   0.756   17.33%
Beijing Municpality            
Beijing Co-generation  4.686   4.636   1.08%
Beijing Co-generation (CCGT)  3.980   3.955   0.63%
Tianjin Municipality            
Yangliuqing Co-generation  6.851   6.609   3.66%
Shanxi Province            
Yushe  2.951   3.405   (13.33)%
Zuoquan  6.682   6.358   5.10%
Shandong Province            
Dezhou  15.405   15.400   0.03%
Jining  5.050   5.097   (0.92)%
Weihai  11.361   11.608   (2.13)%
Xindian  3.254   3.256   (0.06)%
Rizhao Phase II  7.775   7.484   3.89%
Zhanhua Co-generation  1.761   1.724   2.15%
Henan Province            
Qinbei  21.927   17.764   23.44%
Jiangsu Province            
Nantong  7.951   8.406   (5.41)%
Nanjing  3.678   3.827   (3.89)%
Taicang  11.445   11.672   (1.94)%
Huaiyin  7.244   7.152   1.29%
Jinling CCGT  2.400   3.788   (36.64)%
Jinling Coal-fired  12.811   11.538   11.03%
Jinling Co-generation  1.115   —   — 
Rudong Windpower  0.012   —   — 
Qidong Wind Power  0.350   0.357   (1.96)%
Shanghai Municipality            
Shidongkou I  7.875   7.710   2.14%
Shidongkou II  6.708   6.472   3.65%
Shidongkou Power  7.603   7.739   (1.76)%
Shanghai CCGT  1.974   1.633   20.88%
Chongqing Municipality            
Luohuang  14.278   12.191   17.12%
Zhejiang Province            
Yuhuan  24.819   24.116   2.92%
Hunan Province            
Yueyang  9.958   8.204   21.38%
Xiangqi Hydropower  0.267   0.183   45.90%
Hubei Province            
Enshi Hydro  0.045   0.050   (10.00)%
Jiangxi Province            
Jinggangshan  9.702   8.842   9.73%
Fujian Province            
Fuzhou  14.666   13.800   6.28%
Guangdong Province            
Shantou Coal-fired  5.614   6.420   (12.55)%
Haimen  18.105   12.529   44.50%
Yunnan Province            
Diandong  7.527   8.509   (11.54)%
Yuwang  4.553   4.992   (8.79)%
Domestic Power Plant Power generation in 2015  Power generation in 2014  Change 
Liaoning Province
         
Dalian  5.921   6.423   (7.82)%
Dandong  3.050   3.197   (4.60)%
Yingkou  7.875   7.980   (1.32)%
Yingkou Co-generation  3.085   3.043   1.38%
Wafangdian Wind Power  0.094   0.099   (5.05)%
Suzihe Hydropower  0.051   0.040   27.50%
Changtu Wind Power  0.196   0.127   54.33%
Inner Mongolia Autonomous Region
            
Huade Wind Power  0.193   0.217   (11.06)%
Hebei Province
            
Shang’an  12.519   12.836   (2.47)%
Kangbao Wind Power  0.097   0.085   14.12%
Gansu Province
            
Pingliang  6.020   9.129   (34.06)%
Jiuquan Wind Power  0.438   0.838   (47.73)%
Jiuquan II Wind Power  0.444   0.039   1038.46%
Yumen Wind Power  0.150   -   - 
Yigang Wind Power  0.001   -   - 
Beijing Municpality
            
Beijing Co-generation  3.924   4.456   (11.94)%
Beijing Co-generation CCGT  4.159   4.051   2.67%
Tianjin Municipality
            
Yangliuqing Co-genertion  5.427   6.572   (17.42)%
Lingang CCGT Co-generation  1.966   0.126   1460.32%
Shanxi Province
            
Yushe  2.750   2.608   5.44%
Zuoquan  5.625   5.999   (6.23)%
Dongshan CCGT  1.139   -   - 
Shandong Province
            
Dezhou  14.388   15.348   (6.25)%
Jining  4.893   5.096   (3.98)%
Xindian  3.158   3.303   (4.39)%
Weihai  10.894   11.771   (7.45)%
Rizhao Phase II  7.499   8.236   (8.95)%
Zhanhua Co-generation  1.503   1.674   (10.22)%
Henan Province
            
Qinbei  18.710   20.366   (8.13)%
Luoyang Co-generation  1.485   -   - 
 
89
Domestic Power Plant Power generation in 2015  Power generation in 2014  Change 
Jiangsu Province
         
Nantong  6.167   6.752   (8.66)%
Nanjing  2.736   3.154   (13.25)%
Taicang  10.081   11.174   (9.78)%
Huaiyin  5.813   6.486   (10.38)%
Jinling CCGT  2.581   1.895   36.20%
Jinling Coal-fired  11.728   11.567   1.39%
Jinling Co-generation  1.711   1.358   25.99%
Rudong Wind Power  0.095   0.113   (15.93)%
Qidong Wind Power  0.340   0.379   (10.29)%
Suzhou Thermal Power  0.789   0.806   (2.1)%
Shanghai Municipality
            
Shidongkou I  5.060   5.665   (10.68)%
Shidongkou II  5.252   5.190   1.19%
Shidongkou Power  6.039   6.018   0.35%
Shanghai CCGT  1.775   2.097   (15.36)%
Chongqing Municipality
            
Luohuang  9.767   10.862   (10.08)%
Liangjiang CCGT  0.938   0.246   281.30%
Zhejiang Province
            
Yuhuan  18.957   21.771   (12.93)%
Changxing  5.438   0.488   1014.34%
Tongxiang CCGT  0.270   0.171   57.89%
Changxing Photovoltaic  0.008   -   - 
Hunan Province
            
Yueyang  7.859   8.553   (8.11)%
Xiangqi Hydropower  0.363   0.310   17.10%
Subaoding Wind Power  0.318   0.020   1490.00%
Guidong Wind Power  0.069   -   - 
Hubei Province
            
Enshi Maweigou Hydropower  0.063   0.042   50.00%
Jingmen Thermal Power  1.930   0.530   264.1%
Yingcheng Thermal Power  1.062   -   - 
Wuhan Power Plant  10.027   9.760   2.7%
Dalongtan Hydropower  0.086   0.102   (15.8)%
Jieshan Wind Power  0.054   -   - 
Jiangxi Province
            
Jinggangshan  8.993   9.244   (2.72)%
Jianggongling Wind Power  0.090   0.001   8900.00%
Ruijin Power  3.289   3.329   (1.2)%
90
Domestic Power Plant Power generation in 2015  Power generation in 2014  Change 
Anyuan Power  3.015   -   - 
Anhui Province
            
Chaohu Power Plant  5.847   6.807   (14.1)%
Hualiangting Hydropower  0.129   0.097   32.9%
Fujian Province
            
Fuzhou  10.892   13.925   (21.78)%
Guangdong Province
            
Shantou  4.550   5.200   (12.50)%
Haimen  7.631   12.270   (37.81)%
Haimen Power  8.770   6.152   42.56%
Yunnan Province
            
Diandong Energy  3.994   5.953   (32.91)%
Yuwang Energy  1.585   3.651   (56.59)%
Fuyuan Wind Power  0.147   0.022   568.18%
Guizhou Province
            
Panxian Wind Power  0.0003   -   - 
Hainan Province
            
Haikou Power Plant  7.047   6.424   9.7%
Dongfang Power Plant  9.081   10.079   (9.9)%
Nanshan Power Plant  0.248   0.273   (9.0)%
Gezhen Hydropower  0.093   0.202   (53.9)%
Wenchang Wind Power  0.099   0.083   19.4%
Total  320.529   294.388   8.9%
 
55
In 2013,                The Company's growth of power generation within China mainly originated from the capacity contribution from the Newly Acquired Entities and power plants newly put into production. The main reasons for the decrease in some of the Company's power plants are as follows: firstly, as a result of the slowdown of the economy and the deepening of China's economic restructuring, nation-wide electricity consumption in China declined, which led to the decrease of utilization hours. Secondly, the commencement of operations of multiple West-to-East UHV transmission lines has squeezed the generation potential of thermal power generators in the coastal regions in southeastern China. Thirdly, the lower temperature in summer 2015 resulted in lower electricity demand for cooling, while the heating demand in winter also failed to increase significantly. Fourthly, the commencement of operation of many nuclear power units in Liaoning, Zhejiang, Fujian and other provinces reduced the power generated byoutput of the thermal power generating units in such regions. For the year ended December 31, 2015, the accumulated power generation of Tuas Power Ltd., the Company's wholly owned subsidiary in Singapore, operations accounted for 20.60%a market share of the total power generated21.7% in Singapore, decreased by 4.6 percentage points from 2012, mainly attributablerepresenting a decrease of 0.1% compared to the decreased power generation in Singapore resulting from intensified competition in the Singaporean market.
same period last year of 21.8%.
In respect of the tariff, the Company's average tariff of domestic power plants for the year ended December 31, 20132015 was RMB 454.38RMB443.26 per MWh, an increase of RMB0.19down by RMB11.69 per MWh from the year ended December 31, 2012.2014.
91
SinoSing Power's average tariff for 2015 was RMB625.88 per MWh, representing a decrease of 32.02% from the same period last year.
In respect of fuel cost,costs, the decrease of coal market price and effective cost controlscontrol of the Company contributed to reduced fuel costs of the Company. Compared to last year,with 2014, the unitCompany's domestic fuel cost per unit of power sold of the Company’s domestic power plants decreased by 12.50%13.68% to RMB218.59RMB173.67 per MWh.
Combining the foregoing factors, the operating revenue of the Company and its subsidiaries for the year ended December 31, 2013 remained generally2015, the same asCompany registered operating revenue of RMB128.905 billion, representing an increase of 2.79% from RMB125.407 billion of last year, at approximately RMB133.833 billion. For the year ended December 31, 2013, the Company and its subsidiaries recorded a net profit attributable to equity holders of the Company of RMB10.426RMB13.652 billion, representing an increase of 89.14%26.91% from the profitRMB10.757 billion of RMB5.512 billion for the year ended December 31, 2012.
last year.
For the year ended December 31, 2013,2015, the profit attributable to equity holders of the Company from domestic power plantsoperations was RMB10.313RMB13.711 billion, representing an increase of RMB5.842RMB3.082 billion compared to RMB4.471from RMB10.629 billion for the same period last year. The increase was primarily attributable to the increasedecrease of sold electricitydomestic fuel costs and the decreaseprofits contributed by the Newly Acquired Entities and the operation of coal market price.new generating units. The reduced market price of coal was mainly because of the change of coal supply-demand situation within the PRC.
For the year ended December 31, 2013, the profitloss attributable to equity holders of the Company from its operations in Singapore operations was RMB0.113 billion, decreased by RMB0.928 million compared to the same period last year.RMB59 million. This is largely attributable tobecause of the intensified competitioncontinued oversupply in theSingapore's power generation market in Singapore as a result of growingcommenced operations of many generators during the recent years, which led to a continued reduction of local power generation capacities, thus reducing the tariff and volumesignificantly decreased the profit margin per unit of power generation operations of the Company in the Singaporean market.
sold.
Operating revenue
and tax and levies on operations
Operating revenue mainly consists of revenue from powerelectricity sold. For the year ended December 31, 2013,2015, the consolidated operating revenue of the Company and its subsidiaries amounted to RMB133.833RMB128.905 billion, representing a 0.10% decreasean increase of 2.79% from RMB133.967RMB125.407 billion for the year ended December 31, 2012. Due to power generation growth as well as capacity increase2014.  The operating revenue from domestic operations of the Company increased by RMB7.725 billion over the same period of last year, while the operating revenue from domestic power plants increased by approximately RMB5.468the Newly Acquired Entities and the operation of new generating units was RMB21.228 billion.
The operating revenue of Singapore operations decreased by approximately RMB5.602 billion for the year ended December 31, 2013 from last year, which is mainly because of the intensified competition in the power generation market in Singapore as a result of growing power generation capacities since 2013, which has reduced the tariff and volume of power generation operations of the Company in overseasSingapore decreased by RMB4.227 billion over the same period of last year, which was mainly attributable to the continued oversupply in Singpore's power market, and consequently reduced its operating revenue.
which has led to continued decline of the profit margin per unit of power sold.
The following table sets forth the average tariff rate of the Company’sCompany's power plants, as well as percentage changes from 20122014 to 2013.2015.
  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2015  2014  Change 
Liaoning Province
         
Dalian  375.55   394.50   (4.80)%
Dandong  371.45   393.06   (5.50)%
Yingkou  378.32   399.33   (5.26)%
Yingkou Co-generation  365.04   399.21   (8.56)%
Wafangdian Wind Power  598.12   609.68   (1.90)%
Suzihe Hydropower  329.96   330.00   (0.01)%
Changtu Wind Power  590.93   602.82   (1.97)%
Inner Mongolia Autonomous Region
            
Huade Wind Power  520.00   520.00   — 
Hebei Province
            
Shang'an  401.79   429.39   (6.43)%
Kangbao Wind Power  538.14   538.84   (0.13)%
Gansu Province
            
Pingliang  259.51   322.72   (19.59)%
Jiuquan Wind Power  473.12   520.60   (9.12)%
Jiuquan II Wind Power  497.75   540.00   (7.82)%
Yumen Wind Power  472.01   520.60   (9.33)%
Beijing Municipality
            
Beijing Co-generation (Coal-fired)  480.70   514.71   (6.61)%
Beijing Co-generation (Combined Cycle)  959.91   882.33   8.79%

  
Average tariff rate (VAT inclusive) (RMB/MWh)
Power Plant 
2013
  
2012
  
Change
Liaoning Province         
Dalian  407.89   409.18   (0.32)%
Dandong  401.09   405.73   (1.14)%
Yingkou  406.85   409.35   (0.61)%
Yingkou Co-generation  396.96   397.59   (0.16)%
Wafangdian Wind Power  632.85   610.82   3.61%
Suzihe Hydropower  330.00   364.25   (9.40)%
Changtu Wind Power  605.30   610.00   (0.77)%
Inner Mongolia Autonomous Region            
Huade Wind Power  520.00   520.00   - 
Hebei Province            
Shang’an  431.15   434.63   (0.80)%
Kangbao Wind Power  534.47   536.72   (0.42)%
Gansu Province            
Pingliang  332.16   336.12   (1.18)%
Jiuquan Wind Power  520.60   520.60   - 
Beijing Municipality            
Beijing Co-generation  500.06   494.00   1.23%
Tianjin Municipality            
Yangliuqing Co-generation  438.73   438.03   0.16%
Shanxi Province            
Yushe  393.37   396.56   (0.80)%
Zuoquan  389.83   383.25   1.72%
Shandong Province            
Dezhou  464.89   468.90   (0.86)%
Jining  455.46   459.63   (0.91)%
Xindian II  453.35   453.75   (0.09)%
Weihai  474.38   461.89   2.70%
Rizhao Phase II  446.38   446.90   (0.12)%
Zhanhua Co-generation  446.56   450.55   (0.89)%
5692


  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2015  2014  Change 
Tianjin Municipality
         
Yangliuqing Co-generation  416.54   434.28   (4.08)%
Lingang Co-generation CCGT  817.57   —   — 
Shanxi Province
            
Yushe  334.87   391.22   (14.40)%
Zuoquan  333.25   382.01   (12.76)%
Dongshan CCGT  703.80   —   — 
Shandong Province
            
Dezhou  445.44   463.36   (3.87)%
Jining  429.20   446.73   (3.92)%
Xindian  432.30   448.55   (3.65)%
Weihai  440.45   461.18   (4.49)%
Rizhao Phase II  422.33   441.59   (4.36)%
Zhanhua Co-generation  424.66   434.71   (2.31)%
Henan Province
            
Qinbei  401.65   435.42   (7.76)%
Luoyang Co-generation  384.33   —   — 
Jiangsu Province
            
Nantong  430.98   436.00   (1.15)%
Nanjing  453.08   436.50   3.80%
Taicang I  387.68   419.19   (7.52)%
Taicang II  387.68   395.38   (1.95)%
Huaiyin  450.81   443.04   1.75%
Jinling Coal-fired  385.24   408.24   (5.63)%
Jinling Combined-Circle  712.13   606.21   17.47%
Jinling Combined-Cycle Cogeneration  760.99   690.00   10.29%
Suzhou Thermal Power  489.38   508.66   (3.79)%
Qidong Wind Power  556.76   555.92   0.15%
Rudong Wind Power  610.00   610.00   0.00%
Shanghai Municipality
            
Shidongkou I  435.48   438.21   (0.62)%
Shidongkou II  410.35   437.54   (6.21)%
Shanghai CCGT  937.13   866.20   8.19%
Shidongkou Power  427.42   449.92   (5.00)%
Chongqing Municipality
            
Luohuang  427.84   440.21   (2.81)%
Liangjiang CCGT  872.20   —   — 
Zhejiang Province
            
Yuhuan  452.99   468.71   (3.35)%
Changxing  487.93   431.03   13.20%
Tongxiang Combined-cycle  1,278.17   1,298.37   (1.56)%
Changxing Photovoltaic  1,125.67   —   — 
Hunan Province
            
Yueyang  480.55   495.31   (2.98)%
Xiangqi Hydropower  410.00   410.00   0.00%
Subaoding Wind Power  611.72   494.00   23.83%
Guidong Wind Power  610.00   —   — 
Hubei Province
            
Enshi Maweigou Hydropower  379.26   366.59   3.46%
Jingmen Thermal Power  444.09   432.20   2.75%
Yingcheng Thermal Power  477.26   —   — 
Wuhan Power  435.47   461.99   (5.74)%
Dalongtan Hydropower  374.80   366.89   2.16%
Jieshan Wind Power  610.00   —   — 
Jiangxi Province
            
Jinggangshan  443.73   468.92   (5.37)%
Jianggongling Wind Power  610.00   610.00   — 
Ruijin Power  441.24   466.57   (5.43)%
AnyuanPower  424.63   —   — 
Anhui Province
            
Chaohu Power Plant  409.79   412.93   (0.76)%
Hualiangting  392.89   346.85   13.27%
Fujian Province
            
Fuzhou  392.29   441.83   (11.21)%
Guangdong Province
            
Shantou Coal-fired  498.01   529.99   (6.03)%
Haimen  483.38   503.18   (3.93)%
Haimen Power  485.46   479.55   1.23%

  
Average tariff rate (VAT inclusive) (RMB/MWh)
Power Plant 
2013
  
2012
  
Change
Henan Province         
Qinbei  437.01   441.43   (1.00)%
Jiangsu Province            
Nantong  435.69   441.25   (1.26)%
Nanjing  436.35   442.17   (1.32)%
Taicang I  432.81   430.43   0.55%
Taicang II  427.58   443.88   (3.67)%
Huaiyin  449.87   458.25   (1.83)%
Jinling            
Qidong Wind Power  541.34   542.65   (0.24)%
Shanghai Municipality            
Shidongkou I  453.27   457.18   (0.86)%
Shidongkou II  442.00   442.13   (0.03)%
Shanghai CCGT  486.74   457.11   6.48%
Shidongkou Power  462.02   463.85   (0.39)%
Chongqing Municipality            
Luohuang  448.57   448.95   (0.08)%
Zhejiang Province            
Yuhuan  484.79   491.37   (1.34)%
Hunan Province            
Yueyang  505.13   506.87   (0.34)%
Xiangqi Hydropower  390.00   390.00   - 
Hubei Province            
Enshi Maweigou Hydropower  356.96   360.00   (0.84)%
Jiangxi Province            
Jinggangshan  482.95   483.90   (0.20)%
Fujian Province            
Fuzhou  442.81   445.64   (0.64)%
Guangdong Province            
Shantou Coal-fired  541.39   542.97   (0.29)%
Haimen  514.30   529.06   (2.79)%
Yunnan Province            
Diandong Energy  371.30   359.58   3.26%
Yuwang Energy  377.41   361.70   4.34%
Singapore            
Tuas Power  994.54   1,206.23   (17.55)%
93
Tax
  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2015  2014  Change 
Guizhou Province
         
Panxian Wind Power  —   —   — 
Yunnan Province
            
Diandong Energy  435.58   401.59   8.46%
Yuwang Energy  545.42   395.96   37.75%
Fuyuan Wind Power  600.61   610.00   (1.54)%
Hainan Province
            
Haikou  457.71   474.14   (3.47)%
Dongfang  460.53   482.69   (4.59)%
Nanshan Combined Cycle  629.32   439.84   (43.08)%
Gezhen Hydropower  399.78   392.63   1.82%
Wenchang Wind Power  571.95   619.72   (7.71)%
Domestic total  443.26   454.95   (2.57)%
Singapore
            
SinoSing Power  625.88   920.74   (32.02)%
Note 1:  The tariff of Shanghai Combined Cycle and levies on operations
Tongxiang Combined Cycle consists of on-grid settlement price and capacity subsidy income.
Tax and levies on operations mainly consistsconsist of taxes associated withsurcharges of value-added tax surcharges.tax. According to relevant administrative regulations, these surcharges include City Construction Tax and Education Surcharges calculated at prescribed percentages on the amounts of the value-added tax paid. For the year ended December 31, 2013,2015, the tax and levies on operations amountedof the Company and its subsidiaries were RMB1.158 billion, representing an increase of RMB226 million from RMB932 million for the same period of last year, of which the tax and levies on operations attributable to RMB1.044 billion.
the Newly Acquired Entities and new generating units accounted for RMB136 million.
Operating expenses
For the year ended December 31, 2013,2015, the total operating expenses of the Company and its subsidiaries was RMB108.678RMB98.604 billion, representing a 6.58% decrease of 0.60% from RMB116.338 billion for the year ended December 31, 2012.
same period last year. The operating costs and expenses in domestic power plantsoperations of the Company increased by RMB3.08 billion, or 3.61%, from the same period last year, of which the Newly Acquired Entities and the new generating units accounted for RMB15.349 billion; the costs attributable to the existing entities decreased by RMB3.310RMB12.269 billion, which was primarily attributable to the balanced results of reduced market price of coaldecreased fuel costs for domestic operations in the PRC and assets impairment and increase of assets disposal loss. China.
The operating expenses offrom operations in Singapore operations decreased by RMB4.350RMB3.676 billion, foror 26.45%, from the same period last year, ended December 31, 2013 from last year. The decreasewhich was mainly becausedue to the decline of decreased fuel costs and retail electricity purchase cost as a result of the declined electricity price of Singapore.
Fuel
resulting from decreased natural gas price.
Fuel cost representscosts
Fuel costs represented the majoritylargest portion of the operating expenseexpenses for the Company and its subsidiaries. For the year ended December 31, 2013,2015, fuel costcosts of the Company and its subsidiaries decreased by 10.38%8.52% to RMB73.808RMB59.242 billion from RMB82.355RMB64.763 billion for the year ended December 31, 2012.2014. The fuel costs of domestic power plantsoperations decreased by RMB5.976RMB3.394 billion, from last year, which was primarily attributable to the reduced marketdecreased coal price of coal in the PRC and effective cost controlsdomestic market together with the expansion of the Company.
The fuel costs of the Newly Acquired Entities and new generating units were RMB9.855 billion and the fuel costs of the existing generating units decreased by RMB13.249 billion from same period last year. Fuel costs in Singapore decreased by RMB2.126 billion from the same period last year, mainly due to the decline of fuel costs resulting from decreased natural gas price. For the year ended December 31, 2013,2015, the average unit price (excluding tax) of natural fuel coal consumed of the Company and its domestic subsidiaries was RMB466.91RMB366.30 per ton, representing a 11.28% decrease of 15.77% from RMB526.25RMB434.88 per ton for the year ended December 31, 2012.2014. The fuel cost per unit of power sold by the Company’s domesticCompany's coal-fired power plantplants in China decreased by 12.50%13.68% to  RMB173.67/MWh  from RMB249.82/RMB201.19/MWh in 2012 to RMB218.59/MWh in 2013.
Fuel costs of Singapore operations was reduced by RMB 2.571 billion from last year, mainly due to decreased fuel costs as a result of declined power generation in Singapore.

57
2014.
Maintenance
94
For the year ended December 31, 2013,2015, the maintenance expenses of the Company and its subsidiaries amounted to RMB3.857RMB4.556 billion, representing a 35.47%an increase of RMB826 million from RMB2.847RMB3.730 billion for the year ended December 31, 2012.2014. The maintenance expenses of domestic operations increased by RMB 0.978 billion mainly because of extensive maintenances scheduled in 2013.RMB792 million compared to the same period last year. The maintenance expenses of Singapore operations increased by approximately RMB32 million.
RMB34 million compared to the same period last year.
Depreciation
For the year ended December 31, 2013,2015, depreciation expenses of the Company and its subsidiaries increased by 2.37%23.74% to RMB11.294RMB14.412 billion, from RMB11.033compared to RMB11.647 billion forin the year ended December 31, 2012.2014; the increase was mainly due to the expansion of the Company's operations. The depreciation expenses of domestic operations increased by RMB2.81 billion compared to the same period last year, of which the Newly Acquired Entities and new generating units accounted for RMB2.637 billion. The depreciation expenses of the new generation units were RMB 0.450 billion.
operations in Singapore decreased by RMB44 million compared to the same period last year.
Labor
Labor costs consist of salaries to employees and contributions payable to relevant state authorities for employees’employees' housing fund,funds, medical insurance, pension and unemployment insurance, as well as training costs and others.costs. For the year ended December 31, 2013,2015, the labor costs of the Company and its subsidiaries amounted to RMB5.763RMB7.752 billion, representing a 12.73%an increase of RMB1.492 billion from RMB5.112RMB6.260 billion for the year ended December 31, 2012. The increase was2014. This is mainly attributable to the operation of new generation unitslabor cost of the Company,Newly Acquired Entities and new generating units, and increase of mandatory social insurance contribution,the salaries linked to the performance of the Company. The labor costs of the Newly Acquired Entities and new generating units were RMB1.242 billion. Labor costs for Singapore operations decreased by RMB10 million compared to the increase of employees’ performance-related salaries.
same period last year.
Other operating expenses (including electricity power purchase of electricitycosts and service fees paid to HIPDC)
Other operating expenses include environmental protection expenses, land fee, insurance premiums, office expenses, amortization, Tuas Power’sPower's electricity power purchase costs, impairment losses, government subsidies and net losses on disposal of electricityproperties, plant and others.equipment. For the year ended December 31, 2013,2015, other operating expenses (including electricity power purchase of electricity)costs and service fees paid to HIPDC) of the Company and its subsidiaries was RMB13.957RMB12.642 billion, representing a decrease of RMB1.033 billionRMB158 million from RMB14.990RMB12.800 billion for the year ended December 31, 2012. Other2014. The other operating expenses from domestic operations of the Company and its subsidiaries increased by RMB0.825RMB1.371 billion, including RMB 0.639billionof which RMB876 million was from asset retirement lossesthe Newly Acquired Entities and new generating units; the other operating expenses of the existing entities increased by RMB495 million compared to the same period last year. The impairment loss increased RMB968 million compared to the same period last year, mainly consisting of the impairment loss of goodwill, property, plant and equipment and mining rights of Diandong Energy, Yuwang Energy, Pingliang and other entities; the costs of entrusted power generation of certain subsidiaries RMB0.125 billion from assets impairment,decreased by RMB114 million; expenses for non-maintenance materials decreased by RMB90 million, pollutants discharge fees decreased by RMB86 million and RMB0.223 billion from replacement electricity costs of ceratin subsidiaries.water-resources fees decreased by RMB53 million compared to the same period last year. Other operating expenses of Singapore operations decreased by RMB1.858 billion, of which purchase of electricity decreased by RMB2.146 billion, which was mainly because of intensified competition in the power generation market in Singapore as a result of growing power generation capacities in 2013, which has reduced the electricity tariff. The assets impairment in the operations in Singapore increaseddecreased by RMB0.319RMB1.53 billion largelycompared to the same period last year. The electricity purchase cost decreased by RMB1.474 billion compared to the same period last year, which was mainly due to the provisiondecrease in purchase volume and price of goodwill impairment by SinoSing Power.
electricity in retail business.
Financial expenses
Financial expenses consist of interest expense, bank charges and net exchange differences.
Interest expense
expenses
For the year ended December 31, 2013,2015, the interest expenses of the Company and its subsidiaries were RMB7.787RMB7.946 billion, representing a decreasean increase of 12.48%, compared with that of RMB8.8971.68% from RMB7.814 billion for the year ended December 31, 2012.2014. The interest expenses from domestic operations decreased by RMB1.077 billion, primarily attributable to the reduced debts of the Company and a decreaseits subsidiaries increased by RMB106 million.
95
The interest expenses from the Newly Acquired Entities and new generating units were RMB1.384 billion and those incurred by the existing entities in China decreased by RMB1.278 billion. The interest expenses of RMB borrowing interest rates.
Singapore operations increased by RMB26 million compared to the same period last year.
Net exchange differences and bank charges
For the year ended December 31, 2015, the Company and its subsidiaries recognised a net loss of RMB24 million in net exchange gains and bank charges, representing a net loss increase of RMB15 million compared with the net loss of RMB9 million for the year ended December 31, 2014, mainly because of the decrease of exchange gain resulting from weaken exchange rate between RMB and U.S. dollar for domestic operations. The operations in Singapore recognised  net gains of RMB170 million from net exchange difference and bank charges, representing a net gain increase of RMB120 million from the net gain of RMB50 million in the last year, mainly due to the strengthen exchange rate between U.S. dollar and Singapore dollar.
Share of profits less losses of associates and joint ventures
For the year ended December 31, 2013,2015, the exchange gains plus bank chargesshare of the Companyprofits less losses of associates and its subsidiaries amounted to RMB94 million,joint ventures was RMB1.526 billion, representing a netan increase of RMB 261RMB210 million compared with the net losses of RMB167 millionfrom RMB1.316 billion for the year ended December 31, 2012. The reasons for the increase include reduced borrowing in United States dollars and steady increase of exchange rate between RMB and United States dollars. The operations in Singapore registered a net loss of RMB5 million from exchange difference and bank charge, representing a decrease of RMB117 million, which can2014, mainly be attributabledue to the increased exchange rate between US dollar and Singaporean dollar.
Share of profit of associates /and joint venturesventures.
Income tax expenses
For the year ended December 31, 2013, the share of profit of associates and joint ventures was RMB615 million, which is similar to the amount in 2012.
Income tax expense
For the year ended December 31, 2013,2015, the Company and its subsidiaries recorded anrecognized income tax expense of RMB4.523RMB5.699 billion, representing an increase of RMB2.013 billion or 80.20%RMB212 million from RMB2.510RMB5.487 billion for the year ended December 31, 2012.2014. The income tax expense offor the domestic operations increased by RMB2.181 billion, which wasRMB476 million, primarily dueattributable to the increase of profit before income tax expense.pre-tax profit.  The income tax expenseexpenses of the operations in Singapore operations decreased by approximately RMB168RMB264 million, which was mainly attributable to the decreaseRMB204 million of profit before income tax expense.

58
credit granted by Singapore government in the current period.
Net Profit, Profitprofit, net profit attributable to the equity holders of the Company and Non-controllingnon-controlling interests
For the year ended December 31, 2013,2015, the Company and its subsidiaries achieved a net profit of RMB12.900RMB17.259 billion, representing an increase of RMB6.534RMB3.697 billion, or 102.64%27.26%, from RMB6.366RMB13.562 billion for the year ended December 31, 2012. For2014; the year ended December 31, 2013, thenet profit attributable to equity holders of the Company was RMB10.426RMB13.652 billion, representing an increase of RMB4.914RMB2.895 billion from RMB5.512RMB10.757 billion for the year ended December 31, 2012. 2014.
The net profit attributable to equity holders of the Company from domestic operations increased by RMB5.842RMB3.082 billion, which was mainly duecontributable to the increased power generationdecrease of domestic fuel cost and reduced coal costs.profits contributed by the Newly Acquired Entities and new generating units. The profitloss attributable to equity holders of the Company from operations in Singapore operations was RMB113 billion, representing a decrease of RMB928 million from the same period last year.RMB59 million.. This was primarilyis mainly because of the continued oversupply in Singapore's power and natural gas generation market as result of commenced operations of many generators during the recent years, which led to a continued reduction of local power tariff and significantly decreased market share and electricity sold within Singapore due toprofitability of the new generation units of other power plant companiesCompany's operations in Singapore.
The profit attributable to non-controlling interests of the Company increased RMB1.620from RMB3.607 billion in 2015 from the year ended December 31, 2012 to RMB2.474RMB2.805 billion for the year ended December 31, 2013. This wasin 2014, mainly attributable to the increased profit of the Company.non-wholly owned subsidiaries.
C.            Financial position
C.Financial position
General
Comparison of assets items
As of December 31, 2014,2016, consolidated total assets of the Company and its subsidiaries were RMB275.172RMB314.840 billion, representing an increase of 4.93%1.93% from RMB262.233RMB308.866 billion as of December 31, 2013.2015.
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As of December 31, 2014, total liabilities of the Company and its subsidiaries were RMB190.389 billion, representing an increase of 1.79% from RMB187.040 billion as of December 31, 2013.
Assets
As of December 31, 2014,2016, total assets of the domestic operations increased by RMB13.770RMB5.312 billion to RMB246.270RMB286.557 billion, including a net increase of RMB10.373RMB2.004 billion in non-current assets, which is mainly attributable to the increase in the Company and its subsidiaries’ capital expenditureexpenditures on construction projects and increased fair value of available-for-sale financial assets during 2014.
projects.
As of December 31, 2014,2016, total assets of the operations in Singapore were RMB28.902RMB28.283 billion, representing a decreasean increase of RMB0.831 billion from the same period last year.RMB661 million as of December 31, 2015. Non-current assets decreasedincreased by 4.36%RMB568 million to RMB24.377RMB24.174 billion, primarily attributable to depreciationappreciation of property, plant and equipment. Current assets increased by 6.60% to RMB4.525 billion, mainly attributable to increased fairSingapore dollar against RMB resulting in higher RMB value of hedging instrumentsgoodwill, power generation license and increase in inventoryother non-current assets.
Comparison of materials and spare parts.
Liabilities
liability items
As of December 31, 2014,2016, consolidated total liabilities of the Company and its subsidiaries were RMB212.653 billion, representing an increase of 2.65% from RMB207.173 billion as of December 31, 2015.
As of December 31, 2016, interest-bearing debts of the Company and its subsidiaries totaled RMB156.135RMB176.098 billion. The interest-bearing debts consist of long-term loans (including those maturing within a year), long-term bonds payable (including those maturing within a year), short-term loans, short-term bonds and finance leasefinancial leases payable. The interest-bearing debts denominated in foreign currencies were RMB3.746amounted to RMB3.290 billion.
As of December 31, 2014,2016, the total liabilities of the operations in Singapore were RMB16.980RMB15.205 billion, representing a decrease of 1.48%4.09% from RMB17.235RMB15.853 billion as of December 31, 2013, mainly attributable2015, principally due to the decrease in long-term loans.fair value changes of fuel swap contract.
Shareholders’Comparison of equity
items
Excluding the impact of profit and profit appropriations, total equity attributable to the equity shareholdersholders of the Company increased as of December 31, 2014 compared to2016, including a decrease of post-tax impact of RMB890 million arising from disposal of available-for-sale financial asset and fair value changes of available-for-sale financial assets held by the beginningCompany and its subsidiaries, a decrease of post-tax impact of RMB181 million arising from changes in other comprehensive income of the year, including increase of RMB2.454 billion from new share issuance,Company's investees accounted for under equity method, an increase of post-tax impact of RMB 0.840RMB1.015 billion arising from reduced fair value of tradable stocks held by the Company, decrease of post-tax impact of RMB0.790 billion due to decreased fair valuechanges of cash flow hedge instruments, an increase of RMB540 million from translation difference of the operations, decreasefinancial statements of RMB0.378 billion from foreign currency translation differences. operations.
Non-controlling interests as of December 31, 20142016 increased by approximately RMB1.911 billion as compared to the end of the last year.
RMB1.368 billion.
Major financial position ratios
  2016  2015 
Current ratio  0.28   0.27 
Quick ratio  0.23   0.23 
Ratio of liability to shareholders' equity  2.47   2.46 
Multiples of interest earned  2.84   3.55 
 
  
2014
  
2013
 
Current ratio  0.36   0.35 
Quick ratio  0.30   0.28 
Ratio of liability and shareholders’ equity  2.71   3.00 
Multiples of interest earned  3.21   3.04 
         
Formula of the financial ratios:        
Current ratio = balance of current assets as of year end / balance of current liabilities as of year end        
Quick ratio = (balance of current assets as of year end – net inventories as of the year end) / balance of current liabilities as of year end        
Ratio of liabilities to shareholders' equity = balance of liabilities as of year end / balance of shareholders' equity (excluding non-controlling interests) as of year end        
Multiples of interest earned = (profit before income tax + interest expense) / interest expenditure (inclusive of capitalized interest)        
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Formula of the financial ratios:
Current ratio = balance of current assets as of the year end / balance of current
liabilities as of the year end
Quick ratio = (balance of current assets as of the year end – net inventories as of the
year end) / balance of current liabilities as of the year end
Ratio of liabilities to shareholders' equity = balance of liabilities as of the year end /
balance of shareholders' equity (excluding non-controlling interests) as of the year end
Multiples of interest earned = (profit before tax + interest expense) / interest
expenditure (inclusive of capitalized interest)
The current ratio and quick ratio remained at relatively low levels for the years endedincreased as of December 31, 20142016 compared to that of December 31, 2015 mainly due to increase of current assets especially inventories and 2013 with slight increase at year-end of 2014 from year-end of 2013.other current assets. The decrease in the ratio of liabilities and shareholders’to shareholders' equity as of December 31, 2016 increased compared to that of December 31, 2015 mainly due to the increase in loans at the year end of 2014 compared with that of 2013 was primarily due to the increased shareholder’s equity as a result of profit increase of the Company and issuance of new shares.end. The multiples of interest earned increased, primarily attributabledecreased mainly due to the increase of netreduced pre-tax profit for the year ended December 31, 2014.2016.
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D.
D.            Liquidity and cash resources
The primary sources of funding for the Company and its subsidiaries have been cash provided by internal funds from operating activities, short-term and long-term loans and proceeds from issuances of bonds, and the primary use of funds have been for working capital, capital expenditure and repayments of short-term and long-term borrowings.
As of December 31, 2014, net current liabilities of the Company and its subsidiaries were approximately RMB66.981 billion. Based on the Company’s proven financing record, readily available banking facilities and sound credibility, the Company believes it is able to duly repay outstanding debts, obtain long-term financing and secure funding necessary for its operations. The Company has also capitalized on its good credit record to make short-term borrowings at relatively lower interest rates, thus reducing its interest expenses.
Cash flows from operating activities
 
For the Year Ended December 31,
  For the Year Ended December 31, 
 
2014
  
2013
  
2012
  2016  2015  2014 
 RMB’000  RMB’000  RMB’000  RMB'000  RMB'000  RMB'000 
Cash flows from operating activities                  
Profit before income tax expense  19,049,580   17,422,689   8,876,785   13,813,138   22,958,050   19,049,580 
Non-cash items adjustments  20,391,789   20,575,691   20,430,486   21,255,080    24,484,383   20,391,789 
Changes in working capital  (226,180)  6,777,910   (175,854)  1,050,309    1,013,467   (226,180)
Interest received  97,374   100,278   109,635   84,806    102,813   97,374 
Income tax expense paid  (5,992,496)  (4,637,139)  (2,312,970)  (4,692,509)  (6,196,005)  (5,992,496)
Net cash provided by operating activities  33,320,067   40,239,429   26,928,082   31,510,824    42,362,708   33,320,067 
Net cash generated by operating activities is the main source of cash for the Company. For the year ended December 31, 2014,2016, net cash generatedprovided by operating activities of the Company and its subsidiaries was RMB33.320RMB31.511 billion, representing a decrease of 25.62% from last year, mainly attributable to reduced operating revenue as a result of decrease of power generation and tariff. Net cash provided by operating activities in Singapore was RMB772 million.
For the year ended December 31, 2015, net cash provided by operating activities of the Company and its subsidiaries was RMB 42.363 billion, of which RMB0.806RMB 0.871 billion was provided by the operating activities in Singapore.

For the year ended December 31, 2014, net cash provided by operating activities of the Company and its subsidiaries was RMB 33.320 billion, of which RMB 0.805 billion was from its operating activities in Singapore.
Cash flows used in investing activities
  For the Year Ended December 31, 
  
2014
  
2013
  
2012
 
  RMB’000  RMB’000  RMB’000 
Cash flows used in investing activities         
Payment for the purchase of property, plant and equipment  (19,858,216)  (17,691,382)  (15,474,614)
Proceeds from disposals of property, plant and equipment  70,712   166,459   949,469 
Prepayments of land use rights  (500,100)  (5,947)  (81,382)
Payment for the purchase of other non-current assets  (21,576)  (32,601)  (51,615)
Cash dividend received  565,334   408,166   728,754 
Payment for investment in associates and joint ventures  (266,877)  (2,017,853)  (947,574)
Cash paid for acquiring available-for-sale financial assets  -   (200,000)  (500,000)
Cash consideration paid for acquisitions of subsidiaries, net of cash acquired  (17,991)  36,599   (149,048)
Cash received from disposal of trading securities  -   102,784   - 
Cash received from disposal of a subsidiary  503,809   6,199   - 
Short-term loan repayment from an associate  -   -   100,000 
Others  54,092   173,326   116,406 
Net cash used in investing activities  (19,470,813)  (19,054,250)  (15,309,604)

  For the Year Ended December 31, 
  2016  2015  2014 
  RMB’000  RMB’000  RMB’000 
Cash flows used in investing activities         
Payment for the purchase of property, plant and equipment  (20,144,903)  (24,191,285)  (19,858,216)
Proceeds from disposals of property, plant and equipment  144,346   109,013   70,712 
Prepayments of land use rights  (89,430)  (136,045)  (500,100)
Payment for the purchase of other non-current assets  (50,653)  (6,981)  (21,576)
Cash dividend received  1,057,642   937,189   565,334 
Payment for investment in associates and joint ventures  (276,118)  (889,780)  (266,877)
Cash consideration paid for acquisitions of subsidiaries, net of cash acquired  157,421   (8,887,882)  (17,991)
Cash received from disposal of available-for-sale financial assets  1,474,301   -   - 
Cash received from disposal of a subsidiary  -   -   503,809 
Others  77,748   50,759   54,092 
Net cash used in investing activities  (17,649,646)  (33,015,012)  (19,470,813)
 
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Net cash used in investing activities amountedwas RMB17.650 billion for the end of December 31, 2016, representing a decrease of 46.54% from last year, mainly due to approximately RMB19.471 billion, RMB19.054 billion and RMB15.310 billionconsideration paid for newly acquired entities in 2014, 2013 and 2012. The cash2015.
Net Cash used in investing activities was RMB 33.015 billion for the year ended December 31, 2014, mainly attributable to the consideration paid for the Newly Acquired Entities from business combination under common control.

Net Cash used in 2014, 2013 and 2012 wasinvesting activities amounted to RMB 19.471 billion, mainly attributable to capital expenditure for construction projects.
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Cash flows from financing activities

  For the Year Ended December 31, 
  2016  2015  2014 
  RMB’000  RMB’000  RMB’000 
Cash flows from financing activities            
Issuance of short-term bonds  32,982,340   18,980,000   17,971,000 
Repayments of short-term bonds  (25,000,000)  (18,000,000)  (15,000,000)
Proceeds from short-term loans  85,689,874   67,298,044   61,503,204 
Repayments of short-term loans  (77,904,489)  (62,600,955)  (55,896,200)
Proceeds from long-term loans  15,978,023   9,943,689   9,647,090 
Repayments of long-term loans  (20,702,421)  (12,799,719)  (17,522,953)
Issuance of long-term bonds  4,200,000   -   3,988,000 
Repayment of long-term bonds  (11,500,000)  (5,000,000)  (5,700,000)
Interest paid  (7,344,781)  (8,677,316)  (8,097,216)
Net proceeds from the issuance of new H shares  -   4,684,314   2,453,986 
Net capital injection from non-controlling interests of the subsidiaries  285,620   623,107   606,719 
Dividends paid to shareholders of the Company  (7,206,220)  (5,535,655)  (5,341,046)
Dividends paid to non-controlling interests of the subsidiaries  (2,695,378)  (2,954,194)  (1,474,329)
Proceeds from sales leaseback classified as finance lease  -   100,000   1,500,000 
Cash received from disposal of non-controlling interests of a subsidiary  -   -   384,702 
Others  (384,418)  (201,974)  82,863 
Net cash used in financing activities  (13,601,850)  (14,140,659)  (10,894,180)
  
For the Year Ended December 31,
 
  
2014
  
2013
  
2012
 
 RMB’000  RMB’000  RMB’000 
Cash flows from financing activities         
Issuance of short-term bonds  17,971,000   24,950,000   34,930,000 
Repayments of short-term bonds  (15,000,000)  (45,000,000)  (11,000,000)
Proceeds from short-term loans  61,503,204   41,314,000   48,294,295 
Repayments of short-term loans  (55,896,200)  (30,869,290)  (64,832,425)
Proceeds from long-term loans  9,647,090   5,091,175   19,425,661 
Repayments of long-term loans  (17,522,953)  (12,889,078)  (32,483,848)
Issuance of long-term bonds  3,988,000   6,485,000   4,985,000 
Repayment of long-term bonds  (5,700,000)  -   - 
Interest paid  (8,097,216)  (8,290,433)  (8,941,814)
Net proceeds from the issuance of new H shares  2,453,986   -   - 
Net capital injection from non-controlling interests of the subsidiaries  606,719   868,225   665,333 
Government grants  188,406   274,472   266,949 
Dividends paid to shareholders of the Company  (5,341,046)  (2,951,631)  (702,867)
Dividends paid to non-controlling interests of the subsidiaries  (1,474,329)  (539,876)  (460,607)
Proceeds from sales leaseback classified as finance lease  1,500,000   -   - 
Repayment of state-owned fund received from China Huaneng Group in prior years  -   (640,485)  - 
Cash received from disposal of non-controlling interests of a subsidiary  384,702   -   - 
Others  (105,543)  (42,167)  37,423 
Net cash used in financing activities  (10,894,180)  (22,240,088)  (9,816,900)
Net cash used in financing activities was RMB13.602 billion, representing a decrease of 3.81% from last year.
Net cash outflow used in financing activities in 20142015 amounted to RMB 10.894RMB14.141 billion, which was largely attributable to repayment of short-term and long-term borrowings.
Net cash outflow used in financing activities in 20132014 amounted to RMB 22.240RMB10.894 billion, which was primarilylargely attributable to the decreased drawdown of loans, accelerated repayment of its borrowingsshort-term and increased dividends payment of the Company in 2013, as a result of the increase in cash provided by operating activities.
Net cash outflow used in financing activities in 2012 amounted to RMB 9.817 billion, which was primarily attributable to the decreased drawdown of loans in 2012, as a result of the increase in cash generated by operating activities.
long-term borrowings.
Cash and cash equivalents
 
For the Year Ended December 31,
  For the Year Ended December 31, 
 
2014
  
2013
  
2012
  2016  2015  2014 
 RMB’000  RMB’000  RMB’000  RMB’000  RMB’000  RMB’000 
Effect of exchange rate  (58,379)  (108,806)  151,027   72,923   32,846   (58,379)
Net increase / (decrease) in cash and cash equivalents  2,896,695   (1,163,715)  1,952,605   332,251   (4,760,117)  2,896,695 
Cash and cash equivalents, beginning of the year  9,341,672   10,505,387   8,552,782   7,478,250   12,238,367   9,341,672 
Cash and cash equivalents as of the end of the year  12,238,367   9,341,672   10,505,387   7,810,501   7,478,250   12,238,367 
 
As of December 31, 2016, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, Singapore dollar and U.S. dollar were RMB6.620 billion, RMB870 million and RMB320 million, respectively.
As of December 31, 2015, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, Singapore dollar and U.S. dollar were RMB5.788 billion, RMB1.130 billion and RMB0.560 billion, respectively.
As of December 31, 2014, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, HK dollar, Singapore dollar and U.S. dollar were RMB7.976 billion, RMB2.445 billion, RMB1.064 billion and RMB0.753 billion, respectively.
As of December 31, 2013, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, Singapore dollar, U.S. dollar, and Japanese Yen were RMB7.689 billion, RMB1.110 billion, RMB0.543 billion, and RMB0. 015 million, respectively.
As of December 31, 2012, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, Singapore dollar, U.S. dollar, Japanese Yen, and HK dollar were RMB7.934 billion, RMB2.143 billion, RMB0.546 billion, RMB0.4 million, and RMB0.5 million, respectively.

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Capital expenditure and cash resources
Capital expenditures on acquisition activities
On October 14, 2016, the Company signed an agreement for the transfer of equity interests in Certain Companies with Huaneng Group (the "Transfer Agreement"). Pursuant to the Transfer Agreement, the Company agreed to purchase (i) 80% equity interest of Huaneng Shandong Power Limited; (ii) 100% equity interest of Huaneng Jilin Power Limited; (iii) 100% equity interest of Huaneng Heilongjiang Power Limited; and (iv) 90% equity interest of Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. from Huaneng Group for the consideration of RMB 15.114 billion. According to the terms of the agreements, the Company paid 50% of the consideration for such transaction to Huaneng Group in January 2017. The aforementioned acquired entities will be included in the Company’s consolidated financial statements in 2017.
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Capital expenditures onfor infrastructure construction and renovation projects
The capital expenditures for the year ended December 31, 20142016 were RMB20.380RMB20.285 billion, mainly for construction and renovation of projects, including RMB2.277RMB1.558 billion for Changxing expansionRudong Baxianjiao Offshore Wind Power project, RMB1.742 billionRMB878 million for LiangjiangBeijing Cogeneration project, RMB0.861 billionRMB594 million for LuoyangHainan Power project, RMB587 million for Xianrendao Cogeneration project, RMB0.853 billionRMB558 million for JiuquanJiangxi Clean Energy project, RMB537 million for Guilin Gas Distributed Energy project, RMB534 million for Tongwei Wind Power Second, RMB0.611 billionproject, RMB520 million for QinbeiSuzhou combined cycle project, RMB0.550 billionRMB493 million for HaimenTaiyuan Combined Cycle project, RMB0.525 billion for Subaoding project, RMB0.515 billion for Tongxiang Cogeneration project, RMB0.511 billion for Diandong project, RMB0.510 billion for Luoyuan Project, RMB0.500 billion for Dalian project, RMB0.451 billion for Dongshan Combined-cycle project, RMB0.445 billion for Shang’an project, RMB0.408 billionRMB467 million for Mianchi Cogeneration project, RMB0.393 billionRMB458 million for Taicang PortYuhuan project, RMB0.332 billionRMB448 million for Lingang Combined-cycleLuoyuan Power project, RMB0.320 billionRMB423 million for PingliangDezhou project, RMB0.318 billionRMB405 million for Huaiyin IIShang'an project, RMB0.310 billionRMB401 million for YueyangQinbei Power project, and RMB0.302 billionRMB384 million for DezhouNanjing Cogeneration project, RMB348 million for Wuhan Power project, RMB325 million for Jieshan Wind Power project, RMB323 million for Changxing project, RMB299 million for Luoyang Power project, RMB274 million for Weihai Power project, RMB267 million for Guanyun Cogeneration project, RMB259 million for Shidongkou Power project, RMB252 million for Yingcheng Cogeneration project, RMB239 million for Fuzhou project. The capital expenditures of the Company’sCompany's operations in Singapore were RMB0.456 billion.RMB151 million. The expenditures on other projects were RMB7.190RMB8.303 billion.
The above capital expenditures on construction and renovation amounted to approximately RMB17.729 billion and RMB15.608 billion in 2013 and 2012, respectively.
The capital expenditures above are sourced mainly from internal capital, cash flows provided by operating activities and debt and equity financings.
financing.
The Company expects to have significant capital expenditures in the next few years. During the course, the Company will make active efforts to improve the project planning process on a commercially viable basis. The Company will also actively develop newly planned projects to pave the way for its long-term growth. The Company expects to finance the above capital expenditures through internal funding,capital, cash flows provided by operating activities, and debt and equity financing.
The following table sets forth the major capital expenditure cash requirements, usage plans and cash resources of the Company for the next year 2015.are as following:
Capital Expenditure Project 
Capital expenditure arrangements
RMB billion
Plan for
2017
(RMB100 million)
 FundingCash resources arrangements Financing costs and note on usage
use
Thermal power projects 1058.74 InternalIncluding internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Hydropower projects 0.10 InternalIncluding internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Wind power projects 5.7103 Internal cash resources and bank loansWithin the floating range of benchmark lending interest rates of the PBOC
Port projects0.4InternalIncluding internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Coal mining projects 0.90 InternalIncluding internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Photovoltaic power projects 0.213.50 InternalIncluding internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Others 0.70 InternalIncluding internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Technology renovation 6.151.83 InternalIncluding internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Cash resources and anticipated financing costs
The Company expects to finance its capital expenditure and acquisitionsacquisition costs primarily throughwith internal capital, cash flow fromprovided by operating activities, and debt and equity financing.
Good operating results and a sound credit status provide the Company with strong financing capabilities. As of December 31, 2014,2016, the undrawn available banking facilities available to the Company and its subsidiaries amountedamount to more than RMB190approximately RMB262.8 billion, which are granted by Bank of China, China Construction Bank and Industrial and Commercial Bank of China, and China Development Bank, among other sources.etc.
On November 13, 2014, theThe Company issued an aggregatecompleted issuances of 365,000,000 H Shares to nine placees at the issue price of HK$8.60 per share. The aggregate gross proceeds from the placing amounted to approximately HK$3,139 million.
As resolved at the 2010 annual general meeting held on May 17, 2011, our Company has been given a mandate to apply to the competent authority for quota of the non-public issuance of debt financing instruments with a principal amount of not exceeding RMB10 billion within 12 months from the date of obtaining an approval at the general meeting (to be issued within such period on a rolling basis). On September 8, 2011, we received the approval from the competent authority. On November 7, 2011, we completed the issuance of the first tranche of non-public issuance of debt financing instruments in the amount of RMB5 billion with a maturity period of 5 years, a unit face value of RMB100 and an interest rate of 5.74%. On January 6, 2012, we completed the issuance of the second tranche of the non-public issuance of debt financing instruments in the amount of RMB5 billion with a maturity period of 3 years, a unit face value of RMB100 and an interest rate is 5.24%. On June 4, 2013, we completed the issuance of the third tranche of non-public issuance of debt financing instruments in the amount of RMB5 billion with a maturity period of 3 years and an interest rate of 4.82%.
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As resolved at the 2010 annual general meeting on May 17, 2011, our Company has been given a mandate to issue one or multiple tranches of financing instruments of RMB-denominated debt instruments of a principal amount up to RMB5 billion in or outside PRC within 12 months from the date of approval at the general meeting. On April 19, 2012, we received an approval regarding the issuance of RMB-denominated debt instruments in Hong Kong in the sum of RMB5 billion issued by the NDRC, approving our Company to issue the RMB-denominated debt instruments in Hong Kong in an aggregate amount of up to RMB5 billion, with an effective period of one year from the date of approval. On January 30, 2013, our Company and the managers entered into a subscription agreement in relation to the proposed issuance of RMB1,500 million bonds due 2016 with an interest rate of 3.85% (“RMB Bonds”). On February 5, 2013, the listing of and dealing in the RMB Bonds became effective.
As resolved at the 2012 annual general meeting on June 19, 2013, our Company has been given a mandate to issue one or multiple tranches of super short-term notes within the PRC in a principal amount not exceeding RMB30 billion on a rolling basis within 24 months of approval by the general shareholders’ meeting. on August 22, September 10 and November 3, 2014, we issued super short-term notes in three installments at principal amount of RMB2 billion, RMB3 billion and RMB3 billion and with nominal annual interest rate of 4.63%, 4.63% and 4.00%, respectively.  All these series of notes were denominated in RMB, issued at par value, and would mature in 270 days from issuance.
As resolved at the 2012 annual general meeting on June 19, 2013, our Company has been given a mandate to issue one or multiple tranches of short-term notes in the PRC in a principal amount not exceeding RMB 15 billion on a rolling basis within 24 months of approval by the general shareholders’ meeting.  On April 25 and November 14, 2014, we issued unsecured short-term bonds in two installments on August 4, 2016 and October 14, 2016, each at a principal amount of RMB5RMB3 billion with nominal annual interest raterates of 4.90%2.5% and 3.98%
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2.6%, respectively. Each installment of the bonds was denominated in RMB, issued at par value, and would mature in 365 days from issuance.the value date.
As resolvedThe Company completed issuances of unsecured super short-term bonds in nine installments on March 3, March 9, March 23, April 8, April 20, May 26, July 13, November 9 and December 1, 2016, at the 2012 annual general meeting held on June 19, 2013, our Company has been given a mandate to issue non-public debt financing instruments in the PRC in a principal amount of not exceeding RMB10RMB2 billion, within 24 months from the date of obtaining an approval at the general meeting.  On July 11, 2014, we issued  mid-term notes at principal amount ofRMB2 billion, RMB2 billion, RMB4 billion, RMB3 billion, RMB3 billion, RMB4 billion, RMB2 billion and RMB2 billion with nominal annual interest rates of 2.59%, 2.48%, 2.48%, 2.42%, 2.62%, 2.73%, 2.50%, 2.79% and 3.45%, respectively. Each installment of the bonds was denominated in RMB, issued at par value, and would mature in 270 days from the value date.
The Company completed issuance of one installment of unsecured super short-term bond on November 16, 2016 at a principal amount of RMB3 billion with a nominal annual interest rate of 5.30%2.98%. The notes werebond was denominated in RMB, issued at par value, and would mature in 180 days from the value date.
The Company completed issuances of unsecured corporate bonds in two installments on June 8, 2016 at a principal amount of RMB3 billion and RMB1.2 billion with nominal annual interest rates of 3.48% and 3.98%, respectively. Each installment of the bonds was denominated in RMB, issued at par value, and would mature in five years and ten years, respectively, from issuance.
the value date.
As of December 31, 2014,2016, short-term borrowingsloans of the Company and its subsidiaries totaled RMB43.529totalled RMB57.669 billion (2013: RMB37.937(2015: RMB49.883 billion). Loans from banks were charged at interest rates ranging from 4.00%2.77% to 6.00%4.35% per annum (2013: 2.67%(2015: 3.19% to 6.10%5.60%).
Short-term bonds payable by the Company and its subsidiaries totaled RMB18.245were RMB27.311 billion (2013: RMB15.135(2015: RMB19.348 billion).
As of December 31, 2014,2016, long-term borrowingsloans (including those maturing within a year) of the Company and its subsidiaries totaled RMB65.031totalled RMB74.551 billion (2013: RMB73.311(2015: RMB78.379 billion), including RMB denominated borrowings of RMB48.413RMB58.876 billion (2013: RMB55.342(2015: RMB62.441 billion), U.S. dollar denominated borrowingsloans of approximately US$0.542 billion (2013:410 million (2015: US$0.616 billion)473 million), Euro denominated borrowingsloans of approximately €58€39 million (2013: €67(2015: €49 million), and SingaporeanSingapore dollar denominated borrowingsloans of S$2.7742.581 billion (2013:(2015: S$2.852 billion).  The U.S. dollar denominated borrowings charged at floating interest rate were US$0.539 billion (2013: US$0.6082.697 billion), and Japanese yen denominated loans of ¥2.703 billion (2015: ¥2.812 billion). Among them, all of the borrowingsloans denominated in SingaporeanUS dollar and Singapore dollar were floating-rate borrowings.  For the year endedfloating rate, and loans denominated in all other foreign currencies were fixed rate. As of December 31, 2014,2016, long-term bank borrowingsloans of the Company and its subsidiaries have had interest rates ranging from 0.81%0.75% to 6.55%5.65% per annum (2013: 0.81%(2015: 0.75% to 6.55%).
As of December 31, 2014, the borrowings for the Singapore operations were all long-term loans approximately in aggregate of RMB12.872 billion, including borrowings denominated in Singapore dollars in the amount of S$2.772 billion, with interest rates 1.98% per annum, and borrowings denominated in U.S. dollars in the amount of US$1.706 million with interest rate of 4.25% per annum.
The Company and its subsidiaries will closely monitor any change in the exchange rate and interest rate markets and cautiously assess the currency rate and interest rate risks.
Combining the current development of the power generation industry and the growth of the Company, the Company will make continuous efforts to not only to meet cash requirements of daily operations, constructions and acquisitions, but also to establish an optimal capital structure to minimize the cost of capital and manage financial risks through effective financial management activities, thus maintaining sustainable and stable returns to the shareholders.

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Other financing requirements
The objective of the Company is to bring long-term, steadily growing returns to shareholders.shareholders in the long run. In line with this objective, the Company follows a proactive, stable and balanced dividend policy. In accordance with the profit appropriation plan of the board of directors of the Company (subject to the approval at the shareholders’annual general meeting), for 2016, the Company expects to pay a cash dividend of RMB 5.480 billion for 2014.
RMB4.408 billion.
Maturity profile of borrowings
loans and bonds
The following table sets forth the maturity profile of the Company’sCompany's borrowings as of December 31, 2014.2016.
Maturity Profile
(RMB in billions)
 
2015(1)
  
2016
  
2017
  
2018
  
2019
 
                
Principal proposed to be repaid  73.921   20.497   12.592   9.667   10.870 
Interest proposed to be repaid  6.697   3.852   2.765   2.236   1.760 
Total  80.618   24.349   15.357   11.903   12.630 

Note:101
(1)The amount of the principal to be repaid in 2015 is relatively large because this includes expected repayment of short-term loans and short-term bonds.
Maturity Profile
(RMB billion) 2017  2018  2019  2020  2021 
                
Principal amount planned for repayment  97.530   16.090   13.203   9.221   9.407 
Interest amount planned for repayment  5.545   3.150   2.443   1.755   1.386 
Total  103.075   19.240   15.646   10.976   10.793 
Note:  The amount of the principal to be repaid in 2017 is relatively large because of the maturity of short-term loans and short-term bonds.
E.E.             Trend information
The major trend of the electricity power market
Based onIt is predicted by China Electricity Council’s forecast, China’s GDP is expected toCouncil that, in 2017, total electricity consumption nationwide will grow by 7.0% in 2015,3% and national power consumption is estimated to increase by 4% to 5%, among which, the power consumption by primary industries is estimated to increase by 2%, the power consumption by secondary industries is estimated to increase by 3.5% and the power consumption by tertiary industries is estimated to increase by 8.5%. Residential electricity consumption is estimated to increase by 7%. Total2017 will see newly installed generationgenerating capacity in the PRC is expected to increase by 100of approximately 110 million KW, representing an increase of 7.5% compared with that of last year, among which its hydro powernon-fossil energy capacity is espected to increase by 14 milliion KW, thermal power capacity is expected to increase by 44will account for 60 million KW, nuclear power capacity is expected to increase by 8.76 million KW, on-grid wind power capacity is expected to increase by 19 million KW, and on-grid solar power capacity is expected to increase by 10 million KW. By the end of 2015,kW; the total installed generation capacity in the PRCnationwide is expected to reach 1.461.75 billion KW.  The powerkW, an 6% increase compared to that of 2016, of which non-fossil energy capacity will account for 660 million kW.
In 2017, electricity supply and demand in China are expected towill generally ease upbe balanced, with abundant surplus capacity in Northeast and Northwest region,some regions, balanced supply and demand in Eastern, Central and Southern regions, andNorthern region, broadly balanced supply in Northern region,Central, Eastern, and Southern regions, where some supply shortagea number of provinces are abundant, and big surplus in Shandong, South Hebei, Beijing, TianjinNortheastern and Tangshan area still exists during peak hours. AsNorthwestern regions. In 2017, the growth rate of generation capacity would be higher than that of electricity consumption, annual power generation utilization hours in 2015 will experience a slight decline and power generations areis expected to grow by about 4%be around 3,600 hours, and the utilization hours of thermal generating equipment are estimated down to 5%.
be around 4,000 hours.
The trend of the fuel supply
We expectAccording to see the Center for Forecasting Science of Chinese economy shift gearAcademy of Sciences, thermal generating units are expected to use less coal in 2015 from2017 than in 2016 as a result of the previous high speed growth modelgovernment policy to reduce production capacities in the coal sector and a medium-to-high-speed growth model thatweakened power market in China. Total coal consumption is characterized by improved industry structureexpected to experience a year-on-year decrease of 3% in 2017, while excessive coal supply will continue due to the generally weak-supply-and-weak-demand and new driving forces.  Instructural-oversupply situation nationwide. Railway transport and air freight capacity will further loosen. Considering the effect of RMB exchange rate and a gradually stabilized domestic coal market, supplyless coal may be imported than in 2016 while coal imports are expected to have certain impact on domestic coal price. The Company estimates that the coal price in 2017 will remain in excess of demand, due to excess production capacities.  Additionally, coal prices will be subject to the following uncertainties: (i) the government has enacted the Safe Production Law and taken other measures to limit coal production capacities and quantities; and (ii) the newly issued Enviromental Protection Law and Commodity Coal Quality Management Measures is imposing stricter environmental protection measures and requirments for the production of coal, electricity and steel and the inspection of imported coals.  Wegradually stabilize after fluctuation within a narrow range.
The Company will closely monitor any changethe changes in policies and the climate in coal market, continue to cooperateenhance its cooperation with competitive major mines, continuously explore new sourcing channels, conduct bidding of existing commodities, perfect the imported coal vendors, timely adjust purchasing strategy, initiate a centralized purchasing program,business, strengthen the refining management of the fuel and take effortsstrive to control fuel costs by improving the management of fuel usage.
costs.
The trend of capital market and foreign exchange
In 2015,The interest-bearing debts of the Company are mostly denominated in RMB. The interest rates applicable to RMB loan contracts will be determined and regularly adjusted based on the adjustment of benchmark lending interest rates published by the PBOC. The PBOC will continue to implement steady monetary policiesexercise a stable and make predicative fine-tuning monetary policies from time to time. In respectelastic moderate currency policy, which will help reduce financing costs of the creditCompany.
In the Singaporean capital market, money suppply is expectedthe SOR interest rate will continue to increaserise as a result of two successive cutincrease of benchmark interest rateUS dollar lending rates as well as depreciation of Singapore dollar, which is anticipated to increase the financing costs of Tuas Power.
We will closely watch the changes in domestic and a cut of deposit reserve ratio byoverseas capital marketsand maintain its good reputation on the PBOC.  In respect of monetary policies, the PBOC will continuecapital markets, make reasonable financing arrangements, explore new financing methods, and strive to maintain a prudent monetary policy that allows for steady macro-control and flexible micro-adjustment, making on-going efforts to liberalize Renminbi interest rates and improve the mechanism the interest rate regulated.control financing costs.
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F.
F.             Employee benefits
As of December 31, 2014,2016, the Company and its subsidiaries had 37,737 domestic42,210 employees within and overseas employees.outside the PRC. The Company and its subsidiaries providedprovide employees with competitive remuneration and linkedlink such remuneration to operating results as workingto provide incentives for the employees. Currently, the Company and its subsidiaries do not have any stock or option based incentive plan.

64
Based on the development plans of the Company and its subsidiaries and the requirements of individual job positions, together with consideration of specific characteristics of individual employees, the Company and its subsidiaries tailored various training programs for their employees on management, technological and otherskills.
All employees of the Company have entered into employmentlabor contracts with the Company.  The Company’sCompany's standard contract includes description of the position, responsibilities, compensations and causes of termination.  The terms of the employmentlabor contracts vary and they generally range from one to five years. The contracts are typically renewable upon expiration by mutual agreement of the Company and the relevant employee.
The Company is unionized, both at its head office and with respect to all power plants.  Labor unions are intended to protect the rights of employees, while allowing the Company to achieve economic objectives. They encourage employees’employees' participation in the Company’sCompany's decision-making process, and serve as mediators in any dispute between the Company and its employees.  The Company has experienced no occurrence of any strike or labor dispute which have impact upon the Company’sCompany's operations.  The Company believes that the Company and its employees are in a good relationship.
CompensationsCompensation of our employees consists of salaries, bonuses and allowances.  Compensations areCompensation is linked to performance of the Company as well as the employee.individual employees.  Our employees are also entitled to certain education, healthcare and other benefits and allowances provided by the Company.
The Company maintains social security schemes for its employees pursuant to government regulations.  These social security benefits are subject to changes in the relevant law and policy.  As of December 31, 2014, the Company has performed its obligation to contribute to these social security schemes and is not aware of any violation of any relevant law or policy.
Based on the development plans of the Company and its subsidiaries and the requirements of individual positions, together with the consideration of specific characteristics of individual employees, the Company and its subsidiaries tailored various training programs for their employees on management skills, technical skills and marketing skills. These programs have enhanced both the knowledge and operational skills of the employees.
G.Guarantees and pledges onG.            Guarantees for loans and restricted assets
As of December 31, 2014,2016, the Company provided a guaranteeguarantees of approximately RMB12.861RMB12.379 billion for Tuas Power’sthe long-term bank borrowings.
borrowings of Tuas Power.
As of December 31, 2014,2016, the details of secured loans of the Company and its subsidiaries arewere as follows:
(1)The Company pledged certain accounts receivable for certain short-term loans borrowed in 2014. As of December 31, 2014,2016, short-term loans of RMB3.150 billionRMB126 million represented the notes receivable that were secured by accountsdiscounted with recourse. As these notes receivable ofhad not yet matured, the Company and its subsidiaries with net book value amounting to RMB3.592 billion.proceeds received were recorded as short-term loans.
(2)As of December 31, 2014, a short-term loan of RMB40 million was secured by a subsidiary port facility.
(3)As of December 31, 2014, bank borrowings of RMB114.90 million were secured by discount of notes receivable with recourse. The borrowings were so recorded as the underlying discounted notes were not mature yet.
(4)As of December 31, 2014,2016, a long-term loan of RMB37 million of a subsidiary of the Company was secured by territorial water use right with net book value amounting to RMB80.36 million.
(5)As of December 31, 2014, a long-term loan of RMB95 millionapproximately RMB2.902 billion of a subsidiary of the Company was secured by certain property, plant and equipment with net book value of RMB194 million.approximately RMB3.105 billion.
(6)(3)As of December 31, 2014, a2016, the long-term loanloans of approximately RMB10,404 million wasRMB9.032 billion were secured by future electricity revenue of the Company and its subsidiaries.
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(7)As of December 31, 2014, a long-term loan of RMB69 million was secured by a subsidiary’s port facility.
                
As of December 31, 2014, notes payable2016, the restricted bank deposits of RMB13 millionthe Company and its subsidiaries were secured by notes receivableRMB71 million.
                As of December 31, 2016, the property, plant and equipment leased under finance lease of the Company and its subsidiaries with net book value amounted to RMB15 million.RMB1.763 billion.
H.            Off-balance sheet arrangements
As of December 31, 2014, restricted bank deposits of the Company and its subsidiaries were RMB370 million.
H.Off-balance sheet arrangements
As of December 31, 2014,2016, there were no off-balance sheet arrangements which have or are reasonably likely to have an effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

65
I.I.             Performance of significant investments and their prospects
The Company acquired a 25% equity interest in Shenzhen Energy Group for RMB2.39 billion on April 22, 2003. In 2011, Shenzhen Energy Group divided into a remainder Company,company Shenzhen Energy Group and a new Company,company Shenzhen Energy Management Company, and the Company holds 25% equity interests in each of the two companies.successors. The Company acquired 200 million shares from Shenzhen Energy Corporation ("Shenzhen Energy"), a subsidiary of Shenzhen Energy Group, in December 2007. Shenzhen Energy allotted shares with its capital surplus in 2011. In February 2013, Shenzhen Energy merged Shenzhen Energy Management Corporation through the combination of a directional seasoned offering and cash paymentspayment to the shareholders of Shenzhen Energy Management Corporation, Shenzhen State-owned Assets Supervision and Administration Commission and the Company. After the merger, the Company directly held 661,161,106661 million shares of Shenzhen Energy, representing 25.02% of its equity interests. In 2016, Shenzhen Energy distributed two shares inof stock dividend out of every 10 shares to its shareholders, and therefore the Company held 992 million shares of Shenzhen Energy.Energy by December 31, 2016. These investments brought a net profit attributable to the equity holders of RMB479the Company of RMB435 million tofor the Company for the year ended December 31, 20142016 under IFRS. This investment is expected to provide steady returns to the Company.
The Company has held directly 60% direct equity interest in Sichuan Hydropower as of December 31, 2006. In January 2007, Huaneng Group increased its capital investment in Sichuan Hydropower by RMB615 million, thus reducing the Company’sCompany's equity interest in Sichuan Hydropower to 49% and making Huaneng Group the controlling shareholder of Sichuan Hydropower. This investment brought a net profit attributable to the equity holders of RMB180the Company of RMB85 million for the year ended December 31, 20142016 under IFRS. This investment is expected to provide steady returns to the Company.
J.J.             Tabular disclosure of contractual obligations and commercial commitments
A summary of payments due by period of our contractual obligations and commercial commitments as of December 31, 20142016 is shown in the tables below. A more complete description of these obligations and commitments is included in the Notes to Financial Statements as referenced below.
Contractual Cash Obligations
(RMB in millions)
 2017   2018-2019   2020-2021  Thereafter  Total 
                  
Long-term loans from Huangeng Group and its subsidiaries(1)
  855   1,668   1,160   135   3,818 
Long-term bank loans and other loans(1)
  8,706   22,502   15,389   24,136   70,733 
Long-term bonds(2)
  3,300   8,000   3,000   1,200   15,500 
Interest payments  2,987   4,653   2,836   3,134   13,610 
Operating Lease – Head Offce(3)
  115   172   -   -   287 
Operating Lease – Huabei Branch(3)
  6   6   -   -   12 
Operating Lease – Nanjing Power Plant(3)
  2   9   9   51   71 
Operating Lease – Shantou Haimen Power(3)
  11   -   -   -   11 
Operating Lease – Xingang Heating Co., Ltd.(3)
  12   -   -   -   12 
Operating Lease – Hualu Sea Transportation Ltd.(3)
  10   -   -   -   10 
Operating Lease – Tuas Power Generation Pte Ltd.(3)
  25   43   48   911   1,027 

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Contractual Cash Obligations
(RMB in millions)
 2017   2018-2019   2020-2021  Thereafter  Total 
                     
   16,029   37,053   22,422   29,567   105,091 
Contractual Cash Obligations
(RMB in millions)
 
2015
   2016-2017   2018-2019  
Thereafter
  
Total
 
                  
Long-term loans from a shareholder(1)
  -   640   -   -   640 
Long-term bank loans(1)
  6,942   16,614   12,537   26,801   62,894 
Other long-term loans(1)
  450   1,035   -   11   1,496 
Long-term bonds(2)
  5,000   14,800   8,000   -   27,800 
Interest payments  2,972   4,759   3,349   4,441   15,521 
Operating Lease – Head Offce(3)
  116   146   -   -   262 
Operating Lease – Shang’an Power Plant(3)
  2   4   4   48   58 
Operating Lease – Nanjing Power Plant(3)
  2   4   4   65   75 
Operating Lease – Liaoning Branch(3)
  2   1   -   -   3 
Operating Lease – Hebei Branch(3)
  1   -   -   -   1 
Operating Lease – Liaoning Wind Power Branch(3)
  1   -   -   -   1 
Operating Lease – Dezhou Power Plant(3)
  34   68   68   146   316 
Operating Lease – Tuas Power Generation Pte Ltd.(3)
  25   53   48   928   1,054 
   15,547   38,124   24,010   32,440   110,121 
Other commercial commitments                    
(RMB in millions)  2015   2016-2017   2018-2019  Thereafter  Total 
Long – term gas purchase contract(4)
  11,800   23,690   23,780   103,490   162,760 
Other commitments(3)
  21,953   -   -   -   21,953 
   33,753   23,690   23,780   103,490   184,713 

Other commercial commitments
(RMB in millions)
 2017   2018-2019   2020-2021  Thereafter  Total 
                     
Long – term gas purchase contract(4)
  10,204   20,408   20,424   64,554   115,590 
Other commitments(3)
  33,717   -   -   -   33,717 
   43,921   20,408   20,424   64,554   149,307 
Notes:
Notes:
(1)See Note 23 to the Financial Statements, “Long-term Loans”"Long-term Loans".
(2)See Note 24 to the Financial Statements, “Long-term Bonds”"Long-term Bonds".
(3)See Note 38 and 42 to the Financial Statements, “Commitments”"Commitments" and "Subsequent Events".
(4)The numbers shown in the table above were calculated based on the minimum purchases stipulated in the long-term gas contracts disclosed in Note 38 to the Financial Statements.
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In addition, in accordance with a 30-year operating lease agreement signed by Huaneng Dezhou Power Plant (“Dezhou Power Plant”) and Shandong Land Bureau for the land occupied by Dezhou Power Plant Phases I and II in June 1994, annual rental amounted to approximately RMB30 million effective from June 1994 and is subject to revision at the end of the fifth year from the contract date. Thereafter, the annual rental is subject to revision once every three years. The increment for each rental revision is restricted to no more than 30% of the previous annual rental amount. For the years ended December 31, 2016, 2015 and 2014, the annual rentals was approximately RMB34 million.
The Company and its subsidiaries have various defined contribution plans in accordance with the local conditions and practices in the provinces in which they operate. The Company and its subsidiaries pay fixed contributions into separate entities (funds) and will have no further payment obligations if the funds do not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.
Disclosures of the pension plans, including the contribution amounts, are included in Note 36 to the Financial Statements.
K.SensitivityK.            Impairment sensitivity analysis to impairment test
Goodwill impairment
The Company and its subsidiaries performconducts impairment test on an annual basis to determine whether there is anyeach individually goodwill at the end of each year. In 2016, the management recognized no goodwill impairment in goodwill. In 2014, due to the delay in coal mine construction schedule and continuous lower utilization of the power plants in Yunnan province, the goodwill arising from the acquisition of Diandong Energy and Yuwang Energy have been impaired based on the impairment testing result. The above mentioned goodwill impairment provided in 2014 approximately amounted to RMB641 million in the aggregate.
assessment.
For goodwill allocated to CGUs in the PRC, changes of assumptions in tariff and fuel price could have affected the results of goodwill impairment assessment. As ofat December 31, 2014,2016, if tariff had decreased by 1% or 5% from management’smanagement's estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against goodwill by approximately RMB357RMB176 million and RMB1,113RMB1,043 million, respectively. If fuel price had increased by 1% or 5% from the management’smanagement's estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against goodwill by approximately RMB25RMB37 million and approximately RMB124RMB899 million, respectively.
Property, plant and equipment impairment
Impairment of other non-current assets
The Company and its subsidiaries test whetherits property, plant and equipment and mining rights suffered any impairment whenever any impairment indication exists.
In 2014,2016, impairment losses for certain property, plant and equipment and land use rights of approximately RMB1,359RMB1,064 million and RMB52 million have been recognized.recognized, respectively. Factors leading to the impairment of operating projects primarily included continuous losseslower utilization hours and external environment deteriorationtariff of two coal-fired power plants as a result of over supply of electricity in respecttwo provinces, as well as low utilization hours of port industry, continuousa hydropower plant as a result of low level of water inflow to the main dam of a hydropower plant and shut-down of a coal-fired power plant.
inflow.
Changes of assumptions in tariff and fuel price will affect the result of property, plant and equipment, land use rights and mining rights impairment assessment. For power plants assets that are subject to impairment testing, asAs at December 31, 2014,2016, if tariff had decreased by 1% or 5% from management’smanagement's estimates with other variables constant with the expectations,expectation, the Company and its subsidiaries would have to further recognizerecognise impairment against property, plant and equipment and land use rights by approximately RMB108RMB92 million and RMB1,186RMB779 million, respectively. Ifrespectively; if fuel price had increased by 1% or 5% from the management’smanagement's estimates with other variables constant with the expectations, the impairment against property, plant
105
and equipment, land use rights and mining rights of the Company and its subsidiaries would have to further recognize impairment against property, plant and equipmentdecrease by approximately RMB8 million and RMB39RMB38 million, respectively.
L.Business plan
L.            Prospects for 2017
In 2015,2017, the Company will seekfurther establish a firm sense of leadership, competitive awareness, market awareness and risk awareness. The Company will adhere to further improve its market position, encourage technologicalan issue-oriented approach, strengthen innovation drive, undertake responsibility and reduce risks, increase its profitabilitymissions, enhance corporate vitality, and competitiveness,place greater emphases on quality and efficiency, transformation and upgrading, standardizing management and risk prevention work, constantly improve the sustainabilityprofitability, competitive strength and sustainable development capability of its operation. Forthe Company.
In respect of the power market, the Company will activelycontinue to deepen research regarding market supply and demand situation, and take active part in market competitioncompetition. We will ensure market share is higher than capacity share, and aimstrive for a leading position in the region in terms of utilization hour benchmark in an effort to achieve a power generation of 345392.0 billion kWh and 4,4603,800 utilization hours in 2015. Forfor the year.
Regarding the fuel market, the Company will striveadhere to controlthe market-oriented development, and strengthen the benchmarking management system, further refine the refined management and thus creating a cost advantage. We will continue to optimize fuel costsprocurement chain and secure stable fuel supply in the long term. Forproduction and operation chain.
In respect of the capital market, the Company intendswill make active response to changes in the financial market, expand financing channels, strengthen internal control over capital and improve capital usage efficiency, continuing to maintain itsthe Company's leading position in the industry in obtaining low costterms of financing through market meanscost.
In respect of innovative development, the Company will further perform innovation driven development strategy, strengthen production management innovation and improve intelligent production, enhance management efficiency and effectiveness.
We will reinforce marketing activitiesITEM 6   Directors, Senior Management and optimize the adjustment in production operation. We will continue to foster the establishment of a stable and reliable fuel supply system, reinforce the operation and management of Tuas Power in Singapore and strive to increase our market share, so as to create long term, stable and increasing returns for our shareholders.Employees
ITEM 6Directors, Senior Management and Employees
A.A.            Directors, members of the supervisory committee and senior management
Directors
The table below sets forth certain information concerning our directors as of March 31, 2015.2017. The current term for all of our directors is three years which will expire in 2017.commencing from the signing of the contracts.
Name
 
Age
 
Position with us
Cao Peixi 5961 Chairman of the Board of Directors
Guo Junming 4951 Vice Chairman of the Board of Directors
Liu Guoyue 5153 Executive Director, President
Fan Xiaxia54Executive Director, Vice President
Li Shiqi 5860 Director
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Name AgePosition with us
Huang Jian 5254 Director
Fan Xiaxia52Director, Vice President
Mi Dabin 4648 Director
Guo Hongbo 4648 Director
Xu ZujianZhu Yousheng 6051 Director
Li Song 5759 Director
Li Zhensheng 70Independent Director
Qi Yudong48Independent Director
Zhang Shouwen4872 Independent Director
Yue Heng 4041 Independent Director
Zhang LiziGeng Jianxin 5161Independent Director
Xia Qing59Independent Director
Xu Mengzhou66 Independent Director
CAO Peixi, aged 59,61, is the Chairman of the Company. He is alsoCompany and the President of Huaneng Group andGroup. He was the Chairman of HIPDC and Huaneng Renewables Co., Ltd. He was the Vice President and the President of China Huadian Corporation and the Chairman of Huadian Power International Corporation Limited. He graduated from Shandong University, majoring in electrical engineering. He holdsis a postgraduate with master’s degree of master in engineering awarded by the Party School of the Central Committee, and is a researcher-grade senior engineer.

GUO Junming, aged 49,51, is the Vice Chairman of the Company, the Chief Accountant of Huaneng Group and a Director of HIPDCHIPDC. He was the Chief Accountant of Huaneng Group and the Chairman of Huaneng Capital Services Co. Ltd.. He was the Deputy Chief Accountant and the ManagerSupervisory Committee of the Finance Department of Huaneng Group.Company. He graduated from Shanxi Finance and Economic Institute, majoring in business finance and accounting, and holdsis a bachelor’s degree.university graduate. He is a senior accountant.


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LIU Guoyue, aged 51,53, is a Director and the President of the Company, the Vice President of Huaneng Group, an Executive Director of Huaneng International Power Fuel Limited Liability Company, the Chairman of Shanghai Times Shipping Limited Company, a Director of Xi’an Thermal Research Institute Limited Company, an Executive Director of HuanengSinoSing Power International Fuel Co.Pte. Ltd., Ltd. and a Directorthe chairman of Tuas Power Ltd., Tuas Power Supply Pte Ltd. and Tuas Power Utilities Pte Ltd.. He was the Vice President of the Company. He graduated from North China Electric Power University, majoring in thermal engineering. He holds a Doctor’s degree in engineering. He is a senior engineer.

LI Shiqi, aged 58, is a Director of the Company and the President of HIPDC. He was the Chairman and the Executive Vice Chairman of Huaneng Capital Services Co., Ltd. Mr. Li graduated from Renmin University of China, majoring in finance. He is a senior accountant.
HUANG Jian, aged 52, is a Director of the Company, an Assistant to the President of Huaneng Group, the Executive Vice Chairman of Huaneng Capital Services Co.,Ltd. and the Chairman of Huaneng Hainan Power Ltd and Huaneng Carbon Assets Management Company Limited. He was the Deputy Chief Economist and the Chief of Financial Planning of Huaneng Group. Mr. Huang graduated from the Department of Accounting of Institute of Fiscal Science of the Ministry of Finance with a master’s degree in economics. He is a senior accountant.
FAN Xiaxia, aged 52,54, is a Director and the Vice President of the Company. He was an Assistant to theCompany, and also Vice President of the Company and the General Manager (Officer) of the Company’s Zhejiang Branch (Yuhuan Power Plant Preparatory Office).Huaneng Group. He graduated from the Economic Management School of Tsinghua University with an EMBA degree. He is a senior engineer.

LI Shiqi, aged 60, is a Director of the Company and a Director of HIPDC. He was the President of HIPDC, the Director of the Business Development Department of Huaneng Group, and the Chairman of Huaneng Carbon Assets Management Company Limited. Mr. Li graduated from Renmin University of China, majoring in finance, and is a college graduate. He is a senior accountant.

HUANG Jian, aged 54, is a Director of the Company, an assistant to the President of Huaneng Group, a Director of Huaneng Capital Services Co., Ltd. and the Chairman of the Supervisory Committee of Huaneng Renewables Corporation Limited. Mr. Huang graduated from the Department of Accounting of Institute of Fiscal Science of the Ministry of Finance with a postgraduate degree of master in economics. He is a senior accountant.

MI Dabin, aged 46,48, is a Director of the Company, the Vice President of Hebei Construction & Investment Group Co., Ltd. and, the Chairman (acting on behalf of the General Manager) of Hebei Construction & Energy Investment Co., Ltd. and the Chairman of Hebei Xingtai Power Generation Limited (河北興泰發電有限責任公司*) He was the Chief Engineer, Vice President and President of Qinhuangdao Power Generation Co., Ltd., the President of Qinhuangdao Thermal Power Generation Co., Ltd., an assistant to the President and the Head of Production and Operation Department of Hebei Construction & Investment Group Co., Ltd., the President of Qinhuangdao Power Generation Co., Ltd. and Qinhuangdao Thermal Power Generation Co., Ltd.. He graduated from North China Electric Power University, majoring in Power Engineering,power engineering, and holds a master’s degree. He is a senior engineer.

GUO Hongbo, aged 46,48, is a Director of the Company, and the Chairman of Liaoning Energy Investment (Group) Limited Liability Company.Company, the director of Shenyang Jinshan Energy Limited (沈陽金山能源股份有限公司*), and the vice chairman of Liaoning Haitong New Energy Low-Carbon Industrial Equity Investment Fund Limited (遼寧海通新能源低碳產業股權投資基金有限公司*). He was the Assistantassistant to the president, vice president, Executiveexecutive vice president, a Director,director, the president and Vice Chairmanvice chairman of Liaoning Energy Investment (Group) Limited Liability Company. Mr. Guo graduated from Jilin University with a master’s degree in administrative management, and holds an MBA degree from Macau University of Science and Technology. He is a profession-gradeprofessorgrade senior engineer.

ZHU YoushengXU Zujian, aged 60,51, is a Director of the Company. He was the Vice President of Jiangsu Provincial International Trust & Investment Corporation, the President of Jiangsu Investment Management Co. Ltd., a DirectorCompany and Vice President of Jiangsu GuoxinProvince Investment GroupManagement Limited Liability Company. He was the Chairmanproject manager of Jiangsu Province Investment Management Co. Ltd.Limited Liability Company, Vice President of Xutang Power Limited Liability Company, the Vice President and the ChairmanPresident of Zking Property & Casualty Insurance Co., Ltd.the Production Safety Department and President of Jiangsu Province Investment Management Limited Liability Company and the vice general manager of Jiangsu Province Investment Management Limited (江蘇省投資管理有限責任公司*). He graduated from Liaoning FinanceNanjing University majoringof Aeronautics and Astronautics specializing in infrastructure finance,power engineering, and holds a bachelor’s degree. He is a master degree postgraduate, researcher-grade senior economist.engineer.

LI Song, aged 57,59, is a Director of the Company, the Vice President of Fujian Investment and Development Group Co., Ltd., Vice Chairman of CNOOC Fujian Natural Gas Co., Ltd., Vice Chairman of CNOOC Fujian Gas Power Generation Co., Ltd. and CNOOC Fujian Zhangzhou Natural Gas Company Limited and a DirectorVice President of Fujian Futou Renewable EnergyZhonghai Emergency Maintenance Co., Ltd. (福建中海應急搶維修有限責任公司*) She graduated from Xiamen Jimei Finance and Commerce College majoring in Finance,finance, Open College of Party School of the Central Committee majoring in Economic Management,economic management, and holds a bachelor’s degree from Party School of the Central Committee.committee. She is an accountant.

68
LI Zhensheng, aged 70,72, is an Independent Director of the Company and TGOOD Electriclectric Co., Ltd. He was the Head of Shanxi Electric Power and Industrial Bureau, the Chiefchief of Rural Power Department of State Power Corporation, the Chief Economist and Consultant of State Grid Corporation. Mr. Li graduated from Hebei University of Technology with a bachelor’s degree. He is also a professor-grade senior engineer.
107


YUE HengQI Yudong, aged 48, is the Independent Director of the Company and the Assistant to the Principal of Capital University of Economics and Business. He is also the Head and a Professor (Grade II) of the Chinese Academy of Industry Economy Research, mentor to PhD and post-doctoral tutor (finance discipline). He is an External Supervisor and the Chairman of the Audit Committee under the Supervisory Committee of Hua Xia Bank Co., Ltd. and an Independent Director of Shenzhen Fountain Corporation. He was the Director of the School of Business Administration of Capital University of Economics and Business. He graduated from the Graduate School of Chinese Academy of Social Sciences, majoring in industrial economics, with a PhD in Economics.
ZHANG Shouwen, aged 48,41, is an Independent Director of the Company, and a Professor and Doctoral Mentor in the Law School of Peking University, the Director of Economic Law Institute of Peking University, the Vice President and Secretary General of the Economic Law Research Society of China Law Society, an Independent Director of Guoxin Securities Co., Ltd. and an Independent Director of Minmetals Development Co., Ltd.. He was a lecturer and Associate Professor of the Law School of PekingSingapore Management University. He graduated from the Law School of Peking University with a PhD in Laws.
YUE Heng, aged 40, is an Independent Director of the Company, a Professor, Dean and Doctorate Mentor of Accounting Department of Guanghua Management School of Peking University, and an Independent Director of Sinopharm, Jingjin Filter Press Group Limited and Beijing United Media Information Technology Co., Ltd. He is the winner of the first session of China National Funds for Distinguished Young Scientists, the winner of New Century Excellent Talents of the Ministry of Education 2012, the leading accounting talent of Ministry of Finance, the Councilor of Accounting Society of China and the Deputy Editor-in-Chief of CJAS magazine of Accounting Society of China. He was the Assistant Professor, Associate Professor, Professor, Dean and ProfessorDoctorate Mentor of Accounting Department of Guanghua Management School of Peking University. He graduated from Tulane University in the United States with a doctor’s degree in accounting.

GENG JianxinZHANG Lizi, aged 51,61, is an Independent Director of the Company, a Professor and Assistant to the PresidentDoctorate Mentor of NorthRenmin University of China, Electric Power University,an Independent Director of Shenzhen Qixin Construction Co., Ltd. (深圳奇信建設股份有限公司*) and the Executive Deputy HeadTriangle Tyre Co., Ltd. (三角輪胎股份有限公司*). He was an assistant accountant of the Academy of Modern Electric Power Research. She was successively as an Associate Professor and Associate Head of FacultyGeophysical Exploration Company of the Beijing Graduate SchoolMinistry of North China Electric Power InstituteMetallurgical Industry and Beijing Instituteassociate professor of Economic Momentum, a ProfessorHebei University of Economics and Head of Faculty of North China Electric Power University. Ms. ZhangBusiness. He graduated from Norththe Renmin University of China Electric Power Institute, majoringspecializing in Electric Power Systemaccounting and Its Automation. She holds a doctor’s degree.

XIA Qing, aged 59, an Independent Director of the Company, a professor and chairman of the Academic Degrees Committee of the Electrical Engineering Department of Tsinghua University, an Independent Director of Tellhow Sci-Tech Co. Ltd., and the Independent Director of Shanghai Zhixin Electricity and Gas Limited (上海置信電氣股份有限公司*). He was an Independent Director of Datang International Power Generation Co., Ltd. and Yunnan Wenshan Electric Power Co., Ltd. He graduated from Tsinghua University specializing in electric power system and automation and holds a doctor’s degree.

XU Mengzhou, aged 66, a professor of Renmin University of China (RUC), an Independent Director of Shandong Hualu-Hengsheng Chemical Co., Ltd. (山東華魯恒升化工股份有限公司) and ENN Ecological Holdings Co. Ltd., (新奧生態控股股份有限公司). He served as a professor of RUC Law School and School of International Studies of Renmin University of China. He graduated from the RUC, with a doctor’s degree in Economic Laws.
Supervisors
The table below sets forth certain information concerning our supervisors as of March 31, 2015.2017. The current term for all of our supervisors is three years, which will expire in 2017.

Name
 
Age
 
Position with us
Ye Xiangdong 4749 Chairman of the Board of Supervisors
Mu Xuan 3941 Vice Chairman of the Board of Supervisors
Zhang Mengjiao 5053 Supervisor
Gu Jianguo 48Supervisor
Wang Zhaobin5950 Supervisor
Zhang LingXiaojun 5450Supervisor
Zhu Daqing44 Supervisor
YE Xiangdong, aged 47,49, is the Chairman of the Board of SupervisorsSupervisory Committee of the Company, and the Vice President of Huaneng Group.Group, a Director of HIPDC, the Executive Director of Huaneng Coal Mining Corporation Company (華能煤業有限公司) and the Chairman of Xi’an Thermal Power Research Institute Co., Ltd. He was the Vice President of the Company, and the Executive Director and President of Huaneng Hulunbeier Energy Development Company Ltd..Ltd. and the Chief Engineer of Huaneng Group. He graduated from Chongqing University, majoring in thermal energy, and holds a master’s degree in Engineering. He is a senior engineer.

MU Xuan, aged 39,41, is the Vice Chairman of the Board of SupervisorsSupervisory Committee of the Company and the Vice President of Dalian Construction Investment Group Co., Ltd. He was the Officer of Finance Department, the Deputy Head and Head of Budget and Finance Department of Dalian Construction Investment Co., Ltd., the Vicedirector, President of Dalian Changxing Island DevelopmentNatural Gas High-pressure Pipelines Limited (大連天然氣高壓管道有限公司*), and Construction Investment Co., Ltd.,the supervisor of Liaoning Hongyan River Nuclear Limited (遼寧紅沿河核電有限公司*) and, the Assistant to the President of Dalian Construction Investment Group Co., Ltd. He graduated from Dongbei University of Finance and Economics, majoring in Technical Economy and Management, and holds a master’s degree.

108

ZHANG Mengjiao, aged 50,53, is a Supervisor of the Company and the Manager of the Finance Department of HIPDC, a Supervisor of Huaneng Anyuan Generation Co., Ltd., Huaneng DuanZhai Coal & Electricity Co., Ltd., Huaneng Chaohu Power Generation Co., Ltd. and Shaanxi Coal Industry Co., Ltd. and the Chairman of the board of Supervisors of Huaneng Shaanxi Power Generation Co., Ltd..HIPDC. She was the Deputy Manager of the Finance Department of the Company. She graduated from Xiamen University, majoring in accounting. She holdsis a master’s degree postgraduate in economics and is a senior accountant.

GU Jianguo, aged 48,50, is a Supervisor of the Company, the Chairman of Nantong Investment & Management Limited Company and the Vice President of Nantong State-ownedState owned Assets Investment Holdings Co., Ltd..Ltd. Mr. Gu was the Chief of Nantong Investment Management Centre, and a Director and the President of Nantong Investment & Management Limited Company. He graduated from Shanghai Jiao Tong University with a master’s degree. He is an economist.

69
ZHANG XiaojunWANG Zhaobin, aged 59,50, is a Supervisor and the Vice Chairman of Labour Union of the Company and the Chairman of the Labour Union. HeCompany. She was theDeputy Manager of the Administration Department and the Corporate Culture Department of the Company. HeShe graduated from China Beijing Municipalthe Central Party School of the Communist Party School,of China, majoring in economic management, and holds a bachelor’s degree. HeShe is a senior corporate culture specialist.an accountant.

ZHU DaqingZHANG Ling, aged 54,44, is a Supervisor and the Manager of the Audit and SupervisoryAuditing Department of the Company. SheHe was theDeputy Manager of the Equity ManagementFinance Department of the Company. SheHe graduated from Zhongnanthe Central University of Finance and Economics, withand holds a master’s degree in finance & accounting, and a bachelor’s degree in management, majoring in financial. Shemanagement. He is a senior accountant.

Other Executive Officers

GU Biquan, aged 57,59, is the Vice President and General Counsel of the Company. He was the Vice President and Secretary to the Board of the Company. He graduated from Beijing Radio and Television University, majoring in Electronics, and holdsis a college degree.graduate. He is an engineer.

ZHOU Hui, aged 51,53, is the Vice President and Chief Accountant of the Company. She was the Vice President and Chief Accountant of the Company. She graduated from Renmin University of China, majoring in Financial Accounting, and holdsis a postgraduate with a master’s degree in Economics. She is a senior accountant.

ZHAO Ping, aged 52,54, is the Vice President of the Company. He was the Chief Engineer of the Company. He graduated from Tsinghua University, majoring in thermal engineering, is a postgraduate with a master’s degree in science and an EMBA degree.science. He is a researcher-grade senior engineer.

DU Daming, aged 48, is50, was the Vice President and the Secretary to the Board of Directors of the Company.Company during the Reporting Period. He was the Chief of the Administration Office of Huaneng GroupVice President and the Chief of the Office of the Board of DirectorsGeneral Counsel of the Company. He graduated from North China Electric Power University, majoring in electric system and automation, is a postgraduate with a master’s degree in science. He is a senior engineer.

WU Senrong, aged 53,55, is currently the Vice PresidentHead of the Discipline Inspection Group of the Company. He was the ManagerHead of the Human Resources DepartmentDiscipline Inspection Group and Vice President of the Company. He graduated from the Economic Management School of Economics and Management of Tsinghua University majoring in business administration for senior management, with a bachelor’s degree and an EMBA degree. He is a researcher-grade senior engineer.

SONG Zhiyi, aged 54,56, is the Vice President of the Company. He was the General Manager of Huaneng Northeast Branch and the Head of Construction Department of Huaneng Group. He graduated from the Guanghua Management Institute of Peking University, majoring in business administration, with a bachelor’s degree and an MBA degree. He is a senior engineer.

LI Jianmin, aged 53,55, is the Vice President of the Company. He was the General Manager (Factory Manager)Deputy Chief Economist of Huaneng Zhejiang Branch (Yuhuan Power Plant) and the General Manager of Huaneng Hebei Branch.Company. He graduated from North China Electricity College, majoring in power plant and electricity system, with a bachelor’s degree in science. He is a researcher-graderesearcher grade senior engineer.

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LIU Ranxing, aged 52,54, is the Vice President of the Company (commencement of term of office: March 2015).Company. He was the President of Huaneng Northeast (Liaoning) Branch, and an Executive Director and President of Huaneng Energy & Communications Holdings Co., Ltd. He graduated from Harbin Institute of Technology, majoring in management engineering, with a master’s degree in science. He is a researcher-grade senior engineer.

HUANG Lixin, aged 50, is the Chief accountant of the Company. He was the Manager of the Finance Department of the Company, and the Head of the Finance Department of Huaneng Group. He graduated from the Economic Management School of Tsinghua University with an EMBA degree. He is a senior accountant.

HE Yong, aged 56,58, is the Chief Engineer of the Company. He was the Manager of the Safety and Production Department and the Deputy Chief Engineer of the Company. He graduated from Wuhan University, majoring in corporate management, is a postgraduate with a master’s degree in management. He is a researcher-grade senior engineer.
B.B.            Compensation for Directors, Supervisors and Executive Officers
The table below sets forth the compensation on individual basis for the directors, supervisors and other executive officers for the year ended December 31, 2014:2016:
Name
 
Position with the Company
 
Pre-tax Remuneration Paid by the
Company in 2014(5)
2016(1)
    (RMB in thousand)
Directors
    
Mr. Cao Peixi Chairman of the Board of Directors -
Mr. Guo Junming(3)
 Vice Chairman of the Board of Directors -
Mr. Liu Guoyue Executive Director and President 653-
Mr. Fan XiaxiaExecutive Director and Vice President845
Mr. Li Shiqi Director -
Mr. Huang Jian Director -
Mr. Fan XiaxiaDirector and Vice President974
70

Name
Position with the Company
Pre-tax Remuneration Paid by the Company in 2014(5)
Mr. Mi Dabin(2)
 Director -48
Mr. Guo Hongbo Director 48-
Mr. Xu ZujianZhu Yousheng Director 48
Ms. Li Song Director -48
Mr. Zhang Shouwe (2)
Director37
Mr. Li Zhensheng Independent Director 74
Mr. Qi YudongYue Heng Independent Director 74
Mr. Zhang ShouwenGeng JianxinIndependent Director74
Mr. Xia Qing Independent Director 74
Mr. Yue Heng(2)Xu Mengzhou (3)
 Independent Director -
Ms. Zhang Lizi(2)
Independent Director-
Mr. Huang Long(1)
Vice Chairman of the Board of Directors-
Mr. Shan Qunying(1)
Director48
Mr. Xie Rongxing(1)
Director48
Mr. Shao Shiwei(1)
Independent Director74
Mr. Wu Liansheng(1)
Independent Director
74
37
     
Sub-total:   
2,189
1,357
     
Supervisors
    
Mr. Ye Xiangdong(2)
 Chairman of the Board of Supervisors -
Mr. Mu Xuan(2)
 Vice Chairman of the Board of Supervisors -48
Ms. Zhang Mengjiao Supervisor -
Mr. Gu Jianguo Supervisor 48
Mr. Wang Zhaobin
Ms. Zhang Xiaojun (5)
 Supervisor 836495
Ms. Zhang Ling
Mr. Zhu Daqing (5)
 Supervisor 491
Mr. Wang Zhaobin (4)
Supervisor52
736Ms. Zhang Ling (4)
Supervisor69
     
Sub-total   1,6201,202
     
Other Executive officers
    
Mr. Gu Biquan Vice President andGeneraland General Counsel 839789
Ms. Zhou Hui Vice President and Chief Accountant 839789
Mr. Zhao Ping Vice President 838789
Mr. Du Daming Vice President and Secretary to the Board of Directors 838789
Mr. Wu Senrong Vice PresidentHead of Discipline Inspection Group 838789
Mr. Song Zhiyi Vice President 834789
Mr. Li Jianmin Vice President 836789
Mr. Liu Ranxing(4)(1)
 Vice President -779
Mr. Huang LixinChief Accountant706
Mr. He Yong Chief Engineer 836789
     
Sub-total:   
6,698
7796
Total   
10,507
13,053


Notes:110
(1)Mr. Huang Long, Mr. Shan Qunying, Mr. Xie Rongxing, Mr. Shao Shiwei and Mr. Wu Liansheng retired on September 18, 2014.
(2)Mr. Mi Dabin, Mr. Yue Heng, Ms. Zhang Lizi, Mr. Ye Xiangdong and Mr. Mu Xuan were appointed on September 18, 2014.

Notes:
(3)Mr. Guo Junming retired as a supervisor and appointed as a director on September 18, 2014.
(1)   The remuneration paid by the Company in 2016 includes fees, basic salaries, performance salaries and pension. Please see Note 37 to the Item 18 Financial Statements, “Directors’, supervisors’ and senior management’s emoluments”.
(4)Mr. Liu Ranxing was appointed on March 24, 2015

(5)The remuneration paid by the Company in 2014 includes fees, basic salaries, performance salaries and pension. Please see Note 37 to the Item 18 Financial Statements, “Directors’, supervisors’ and senior management’s emoluments”.
(2)    Mr. Zhang Shouwen resigned on June 23, 2016.

(3)    Mr. Xu Mengzhou was appointed on June 23, 2016.

(4)    Mr. Wang Zhaobin and Ms. Zhang Ling resigned on April 14, 2016.

(5)    Ms. Zhang Xiaojun and Mr. Zhu Daqing were appointed on April 14, 2016.
 
The total remuneration paid to our directors, supervisors and executive officers is comprised of basic salaries, performance salaries and pension. Of these, performance salaries account for approximately 51%50% of the total remuneration. In addition, directors and supervisors who are also officers or employees of the Company receive certain other benefits, such as subsidized or free health care services, housing and transportation, which are customarily provided by large enterprises in the PRC to their employees. Each of the Company’sCompany's independent directors receives annual after-tax cash compensation of RMB60,000. We do not have any service contract with any director that provides for benefits upon termination of employment. In 2014,2016, no option was granted to the directors or the supervisors.
C.C.            Board practice
We, in accordance with the resolutions passed at a shareholders’shareholders' general meeting, have set up four board committees, namely, the Audit Committee, the Strategy Committee, the Nomination Committee, and the Remuneration and Appraisal Committee, and formulated the working regulations for each committees in accordance with relevant rules and regulations. All committees operate in accordance with the working rules and utilize their members’members' specific backgrounds, experience and industry expertise to provide advice to us,the board, so as to enhance our operation efficiency and to make the decision-making process better informed.

71
The main duties of the Audit Committee are to assist our board in performing its statutory and fiduciary duties of supervising our accounting, financial reports,reporting, internal controlscontrol and compliance, including but not limited to, assisting our board in supervisingensuring (i) the authenticity of our financial statements; (ii) our compliance with the applicable laws and regulations; (iii) the qualification and independence of our independent auditors; (iv) the performances of our independent auditors and internal auditing department and (v) the control and management of the related-party transactions of the Company
Company.
The main duties of the Strategy Committee are to advise on, and conduct research in relation to, our long-term development strategies and decisions regarding significant investments.
The main duties of the Nomination Committee are to conduct research and provide advice in relation to the requirements for selection of directors and managers and the relevant procedures, to search for qualified candidates for the positions of director and manager, to examine the candidates for the positions of director and manager and to advise matters in relation thereto.
The main duties of the Remuneration and Appraisal Committee are to conduct research on the appraisal guidelines for directors and managers, to carry out performance appraisals and provide advice accordingly, and to conduct research on the remuneration policies and proposals regarding the directors and senior management.
The members of Audit Committee are Mr. Yue Heng (Chairman), Mr. Li Zhensheng, Mr. Qi Yudong,Geng Jianxin, Mr. Zhang ShouwenXia Qing and Ms. Zhang Lizi.Mr. Xu Mengzhou.
111
The members of Strategy Committee are Mr. Liu Guoyue (Chairman), Mr. Li Shiqi, Mr. Huang Jian, Mr. Fan Xiaxia, Mr. Li Zhensheng and Ms. Zhang Lizi.
Mr. Xia Qing.
The members of Nomination Committee are Mr. Li Zhensheng (Chairman), Mr. Fan Xiaxia, Mr. Mi Dabin, Ms. Li Song, Mr. Qi Yudong,Yue Heng, Mr. Zhang ShouwenGeng Jianxin and Mr. Yue Heng.
Xu Mengzhou.
The members of Remuneration and Appraisal Committee are Mr. Qi YudongGeng Jianxin (Chairman), Mr. Liu Guoyue, Mr. Guo Hongbo, Mr. Xu Zujian,Zhu Yousheng, Mr. Li Zhensheng, Mr. Yue Heng and Ms. Zhang Lizi.Mr. Xia Qing.
D.D.            Employees
As of December 31, 2014,2016, we have 37,73742,210 employees. Of these, 287295 are headquarters management staff, 10,93311,228 are power plant personnel directly involved in the management and operation of the power plants, and the remainder are maintenance personnel, ancillary service workers and others. Over 71%75% our work force graduated from university or technical college. As of December 31, 20122014 and 2013,2015, we had approximately 36,32637,737 and 37,72942,039 employees, respectively.
We conduct continuing education programs for our employees at our head office and at each power plant. We provide training in foreign language, computer, accounting and other areas to our professionals and technicians in their relevant fields. Employees are trained in accordance with the different requirements for professional and managerial positions.
We have reformed theOur labor system by introducingforce is employed through individual labor contracts. Currently, all employees are employed under employmentlabor contracts, which specify the employee’semployee's position, responsibilities, remuneration and grounds for termination. Short-term employmentlabor contracts have fixed terms of typically one to five years, at the end of which they may be renewed by agreement of both the Company and the employee.
The contract system imposes discipline, provides incentives to adopt better work methods, and provides us with a greater degree of management control over our work force. We believe that, by linking remuneration to productivity, the contract system has also improved employee morale.
Each of our power plants has a trade union and the employees of our headquarters are also members of a trade union. These trade unions protect employees’employees' rights, aim to fulfill our economic objectives, encourage employees to participate in management decisions and mediate disputes between us and union members. We have not been subject to any strikes or other labor disturbances interfering with our operations, and we believe that our relationships with our employees are good.
Total remuneration of our employees includes salaries, bonuses and allowances. The employees also receive certain benefits in the form of education and health services subsidized by the Company and other miscellaneous subsidies.
In compliance with the relevant regulations, we and our employees participate in the local government pension plan under which all the employees are entitled to pension payments upon retirement. See Note 3536 to the Financial Statements.
The Company also participates in the social insurance program administered by the social security institution, under which all employees are entitled to certain social insurance benefits, subject to adjustments in accordance with relevant PRC regulations. The Company is in compliance with all social insurance regulations and has no overdue obligations for any social insurance contribution.
E.E.             Share ownership
None of our directors, supervisors or senior management owns any of our shares.

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ITEM 7    Major Shareholders and Related Party Transactions
ITEM 7Major Shareholders and Related Party Transactions
A.A.            Major shareholders
Our outstanding ordinary shares consist of A Shares and H Shares, each with a par value of RMB1.00 per share. The following table sets forth certain information regarding our major shareholders as of March 31, 2015.2017.
Shareholder 
Number of
shares
  
Approximate
percentage
in the total
issued domestic
share capital %
  
Approximate
percentage
in the total
issued share
capital %
 
Huaneng International Power Development Corporation  5,066,662,118   48.25   33.33 
China Huaneng Group(1)
  1,629,264,402   15.52   10.72 
Hebei Provincial Construction Investment Company  549,169,071   5.23   3.61 
China Hua Neng Hong Kong Company Limited  472,000,000   
-(2)
   3.11 

Shareholder
 
Number of shares
  
Approximate percentage in the total issued domestic share capital %
  
Approximate percentage in the total issued share capital %
 
Huaneng International Power Development Corporation  5,066,662,118   48.25   35.14 
China Huaneng Group(1)
  1,672,769,384   15.93   11.60 
Hebei Provincial Construction Investment Company  603,000,000   5.74   4.18 
China Hua Neng Hong Kong Company Limited  472,000,000   -(2)  3.27 

Notes:Notes:
(1)Of the 1,672,769,3841,629,264,402 shares, 6,246,664 A shares are held by Huaneng Group through its wholly owned subsidiary, Huaneng Capital Services Company Limited and and 111,398,17174,139,853 domestic shares through its controlling subsidiary, Huaneng Finance Corporation Limited.
(2)472,000,000 shares are H shares and represent 12.04%10.04% of the total issued H shares of the Company and 3.27%3.11% of the total issued share capital of the Company.
In 2006, all of our shareholders of non-tradable domestic shares except HIPDC transferred a total of approximately 1.1 billion shares to Huaneng Group, representing 9.24% of our total issued shares. Among others, HPCIC transferred approximately 301 million shares to Huaneng Group, and decreased its shareholdings in the Company to 5.00%.
On April 19, 2006, we carried out our reform plan to convert all non-tradable domestic shares into tradable domestic shares. According to the plan, Huaneng Group and HIPDC transferred a total of 150 million A Shares to our shareholders. As a result, the direct shareholdings of Huaneng Group and HIPDC decreased to 8.75% and 42.03%, respectively.
In June and July of 2008, through its wholly owned subsidiary, China Hua Neng Hong Kong Company Limited, Huaneng Group acquired 20 million H shares from the open market. As a result, the shareholding of Huaneng Group increased to 8.92%.
In 2010, we increased our share capital through non-public issuances of new shares, including A shares and H shares. With the approval of shareholders and relevant PRC governmental authorities, we were authorized to issue (i) not exceeding 1,500 million new A shares by way of placement to not more than 10 designated investors, including Huaneng Group, which would subscribe for no more than 500 million new A shares, and (ii) no more than 500 million new H Shares to China Hua Neng Hong Kong Company Limited (“("Hua Neng HK”HK"). On December 23, 2010, we completed the non-public issuance of 1,500 million new A shares (ordinary shares with a par value of RMB1 per share) to 10 designated investors, including Huaneng Group, at the issuance price of RMB5.57 per share. The other nine investors are CCB International Asset Management (Tianjin) Company Limited, China Life Insurance Asset Management Company Limited, New China Life Assurance Company Limited, Harbin Power Equipment Company Limited, China Three Gorges Corporation, Liaoning Energy Investment (Group) Limited Liability Company, Dongfang Electric Co., Ltd., Dacheng Fund Management Co., Ltd. and China National Offshore Oil Corporation. The shares subscribed by Huaneng Group are subject to a lock-up period of 36 months, and the shares subscribed by other designated investors are subject to a lock-up period of 12 months.
On December 28, 2010, we completed the placement of 500 million H shares (ordinary shares with a par value of RMB1 per share) to Hua Neng HK at the subscription price of HK$4.73 per share.
On November 13, 2014, we completed placement of 365 million H Shares at the price of HK$8.60 per share.
On December 31, 2010, Huaneng Capital Services Company Limited (“Huaneng Capital”), a wholly owned subsidiaryNovember 20, 2015, we completed placement of Huaneng Group, acquired 12,876,654 A shares of our Company through the trading system780 million H Shares at the Shanghai Stock Exchange, representing 0.09%price of the total issued share capital of our Company. Prior to the acquisition, Huaneng Group directly and indirectly controls 7,141,786,667 shares in our Company, representing approximately 50.81% of the total issued share capital of our Company. After the acquisition, Huaneng Group directly and indirectly controls 7,154,663,321 shares of our Company, representing approximately 50.90% of the total issued share capital of our Company. Huaneng Group proposes to continue the acquisition of the A shares of our Company in the secondary market through Huaneng Capital or other concerted party(ies) or in its own name within the 12-month period starting December 31, 2010. The aggregate of such acquisition will not exceed 2% (inclusive of the shares acquired this time) of the issued share capital of our Company.
On December 23, 2011, Huaneng Group acquired 143,620,000 A Shares of our Company through China Huaneng Finance Corporation Limited, a controlling subsidiary of Huaneng Group, via the block trading system at the Shanghai Stock Exchange. After the acquisition, Huaneng Group directly and indirectly controled 7,298,283,321 shares of our Company, representing approximately 51.93% of the total issue share capital of our Company.

73
HK$7.32 per share.
Before we were established in 1994, HIPDC and seven other promoters entered into the Shareholders’Shareholders' Agreement dated May 31, 1994 (the “Shareholders’ Agreement”"Shareholders' Agreement") which, among other things, grants to HIPDC the right to vote all the shares owned by each of the other promoters so as to enable HIPDC to have majority voting
113
rights in general meetings for so long as we are in existence. In addition, directors designated by HIPDC will have majority representation on our board of directors and each of the other promoters will have one representative designated by it appointed as a member of our board of directors. The Shareholders’Shareholders' Agreement also provides that for so long as we are in existence (i) HIPDC and the other signatories to the Shareholders’Shareholders' Agreement will maintain their combined shareholdings to ensure their collective majority control of the Company, (ii) HIPDC has certain priority rights to purchase the shares held by the other signatories to the Shareholders’Shareholders' Agreement, (iii) if HIPDC does not exercise its priority rights to purchase such shares, each of the signatories to the Shareholders’Shareholders' Agreement other than HIPDC shall have a priority right to purchase such shares on a pro rata basis, and (iv) no shares may be sold or transferred unless their transferees agree to abide by the terms of the Shareholders’Shareholders' Agreement. As a result of the Shareholders’Shareholders' Agreement, HIPDC holds 70.09% of the total voting rights of the outstanding shares and, subject to the Shareholders’Shareholders' Agreement, has the power to control the election of all of our directors and to direct our management and policies.
On May 12, 2006, HIPDC and other promoters (including the shareholders who assumed the rights and obligations of original promoters as a result of share transfer) entered into an amendment to the Shareholders’Shareholders' Agreement, pursuant to which each promoter shall be entitled to exercise its own voting rights at the shareholders’shareholders' general meeting. Consequently, HIPDC currently holds 35.14% of our total voting rights. Since HIPDC’sHIPDC's parent company, Huaneng Group, currently holds, directly or indirectly, 14.87% of our total voting rights, HIPDC is able to exert control over us when acting in concert with Huaneng Group.
Huaneng Group and HIPDC had previously given a non-compete undertaking to us during our initial public offering of A shares in 2001, in order to support our business development, to integrate relevant quality assets and to avoid business competition. In September 2010, we received from Huaneng Group an undertaking on relevant matters for further avoidance of business competition. While Huaneng Group will continue to perform its undertakings previously given, Huaneng Group further undertakes that: (i) it shall treat us as the only platform for ultimate integration of the conventional energy business of Huaneng Group; (ii) with respect to the conventional energy business assets of Huaneng Group located in Shandong Province, Huaneng Group undertakes that it will take approximately 5 years to improve the profitability of such assets and when the terms become appropriate, it will invest those assets into us. We have a right of first refusal to acquire from Huaneng Group the newly developed, acquired or invested projects which are engaged in the conventional energy business of Huaneng Group located in Shandong Province; (iii) with respect to the other non-listed conventional energy business assets of Huaneng Group located in other provincial administrative regions, Huaneng Group undertakes that it will take approximately 5 years, and upon such assets meeting the conditions for listing, it will invest such assets into us in order to support our sustainable and stable development; and (iv) Huaneng Group will continue to perform each of its undertakings to support the development of its subordinated listed companies.
On June 28, 2014, pursuant to Guideline No. 4 for the Supervision of Listed Companies No.4 - Commitments and Their Fulfillment by Listed Companies and Their Actual Controllers, Shareholders, Related Parties and Acquirers issued by CSRC, Huaneng Group strengthened its aforementioned non-competing undertaking in the following ways: (i) it shall treat us as the only platform for integrating the conventional energy business of Huaneng Group; (ii) with respect to the conventional energy business assets of Huaneng Group located in Shandong Province, Huaneng Group undertakes that by the end of 2016, it will inject such assets into the our Company when the profitability of such assets has been improved and meets our internal requirements for the listing of our assets, which include clear delineation of assets and shares ownership between our Company and Huaneng Group, absence of decrease in earnings per share of the Company after the injection and any unlawful events of significance, appreciation of state-owned assets, and certain waivers of shareholder rights by Huaneng Group; (iii) with respect to the other non-listed conventional energy business assets of Huaneng Group in other provincial administrative regions, Huaneng Group undertook that by the end of 2016, upon such assets meeting the our aforementioned internal requirements, the Group will inject such assets into the Company, with a view to supporting the Company’sCompany's continuous and stable development; and (iv) Huaneng Group will continue to perform each of its undertakings to support the development of its subordinated listed companies. The period of such undertakings is between June 28, 2014 and December 31, 2016.
 
On October 13, 2014, the Company signed a number of equity transfer agreements with each of Huaneng Group and HIPDC, pursuant to which the Company acquired the equity interests of ten power companies in total held by Huaneng Group and HIPDC for the consideration of approximately RMB9.276 billion. This transaction further reduced the business competition between the Company and major shareholder, and honoring the undertakings provided by major shareholder to support the development of the Company.
114
 
B.B.            Related party transactions
Guarantees
The table below sets forth information on guarantees provided by Huaneng Group, HIPDC and the Company to the related parties in 20142016 for the purposes of financing their operation, construction and renovation.
Guarantor Guarantee Interest Rate Largest Amount Outstanding in 2016 Amount Outstanding As of December 31, 2016
    (%) (RMB) (RMB)
 Huaneng Group 
Yangliuqing Power Company(1)
 2.15 213,993,985.80 190,992,467.43
  Hainan Power 4.17 500,000,000.00 375,000,000.00
HIPDC The Company 5.00 2,000,000,000.00 2,000,000,000.00
  Ruijin Power 4.41 228,000,000.00 142,000,000.00
The Company 
Tuas Power Company(1)
 SIBOR+1.65 10,784,837,243.69 10,796,006,335.62
  
Tuas Power Company(1)
 SIBOR+1.65 1,581,569,715.30 1,583,207,635.02

74
Guarantor
 
Guarantee
 
Interest Rate
  
Largest Amount Outstanding
in 2014
  
Amount Outstanding As of December 31, 2014
 
    (%)  (RMB)  (RMB) 
Huaneng Group The Company 6.36   47,837,704.08   16,315,897.41 
(Ultimate Parent of the Company) The Company LIBOR + 0.075   57,865,516.51   19,358,422.02 
  
Yangliuqing Power Company(1)
 2.15   321,628,569.25   254,845,628.27 
HIPDC The Company 5.00   2,000,000,000.00   2,000,000,000.00 
The Company 
Tuas Power Company(1)
 SIBOR+1.65   11,885,565,887.54   11,216,464,042.81 
  
Tuas Power Company(1)
 SIBOR+1.65   1,742,988,849.27   1,644,866,718.16 
Gas Supply Pte. Ltd. 
TPGS Green Energy Pte Ltd(1)
 4.25   16,745,750.00   10,439,100.00 

Note:Note:
(1)These entities are subsidiaries of the Company.
Loans
The table below sets forth the loans made by Huaneng Group, subsidiaries of Huaneng Group, and the Company to the related parties in 20142016 for the purposes of financing their operation, construction and renovation.
Lender
 
Borrower
 
Interest Rate
  
Largest Amount Outstanding in 2014
  
Outstanding Balance as of December 31, 2014
 
      %  (RMB)  (RMB) 
Huaneng Group The Company  5.400   640,484,600   640,484,600 
(Ultimate Parent of the Company)              
               
Huaneng Finance The Company  5.400   267,000,000   267,000,000 
(Subsidiary of Huaneng Group) 
Yangliuqing(1)
  5.400   150,000,000   150,000,000 
  
Weihai Power Plant(1)
  5.400   100,000,000   100,000,000 
  
Huaiyin II Power Plant(1)
  5.400   100,000,000   100,000,000 
  
Qinbei Power Plant(1)
  5.040   200,000,000   200,000,000 
  
Yushe Power Plant(1)
  5.400   100,000,000   100,000,000 
  
YushePower Plant(1)
  5.040   130,000,000   130,000,000 
  
Yushe Power Plant(1)
  5.600   100,000,000   100,000,000 
  
Xindian Power Plant(1)
  5.700   100,000,000   100,000,000 
  
Luohuang Power Plant(1)
  5.040   200,000,000   200,000,000 
  
Pingliang Power Plant(1)
  5.040   100,000,000   100,000,000 
  
Yangliuqing Co-generation(1)
  5.400   100,000,000   - 
  
Yangliuqing Co-generation(1)
  5.040   200,000,000   200,000,000 
  
The Company(1)
  5.040   200,000,000   200,000,000 
  
The Company(1)
  5.040   200,000,000   200,000,000 
  
Suzhou Power Plant(1)
  5.040   160,000,000   160,000,000 
               
Xi’an Thermal
(Subsidiary of Huaneng Group)
 
Diandong Energy(1)
  5.320   200,000,000   200,000,000 
               
China Huaneng Group Clean Energy Technology Research Institute Co. Ltd. The Company  5.040   150,000,000   150,000,000 
(Subsidiary of Huaneng Group)              
               
Hua Neng HK
(Subsidiary of Huaneng Group)
 
Beijing Co-Generation(1)
  5.400   100,000,000   100,000,000 
               
The Company 
Weihai Power Plant(1)
  6.000   400,000,000   - 
  
Weihai Power Plant(1)
  5.700   200,000,000   - 
  
Weihai Power Plant(1)
  5.700   200,000,000   - 
  
Weihai Power Plant(1)
  5.700   350,000,000   - 
  
Weihai Power Plant(1)
  5.700   300,000,000   - 
  
Weihai Power Plant(1)
  6.000   280,000,000   - 
  
Weihai Power Plant(1)
  5.535   24,203,000   - 
Lender Borrower Interest Rate Largest Amount Outstanding in 2016 Outstanding Balance as of December 31, 2016
    % (RMB) (RMB)
HIPDC Chaohu Power 4.75 210,000 210,000
HIPDC Jingmen Power 5.30 300,000,000 0
Huaneng Finance Dalongtan Hydropower 4.75 30,000,000 25,000,000
Huaneng Finance Hainan Power 4.41 166,000,000 126,000,000
Huaneng Finance Qingdao Co-generation 4.66 60,000,000 60,000,000
Huaneng Finance Qingdao Co-generation 4.66 75,000,000 75,000,000
Huaneng Finance Weihai Power 3.92 100,000,000 0
Huaneng Finance Huaiyin II Power 3.92 150,000,000 0
Huaneng Finance Huaiyin II Power 3.92 200,000,000 200,000,000
Huaneng Finance Suzhou Industrial Park 5.04 0 0
Huaneng Finance Suzhou Industrial Park 3.92 40,000,000 0
Huaneng Finance Qinbei Power 3.92 200,000,000 0
Huaneng Finance Qinbei Power 3.92 200,000,000 200,000,000
Huaneng Finance Yushe Power 4.13 100,000,000 0
Huaneng Finance Yushe Power 4.13 130,000,000 0
Huaneng Finance Yushe Power 4.13 100,000,000 0
Huaneng Finance Yushe Power 4.13 330,000,000 330,000,000
Huaneng Finance Wuhan Power 3.92 200,000,000 0
Huaneng Finance Wuhan Power 3.92 200,000,000 200,000,000
Huaneng Finance Wuhan Power 3.92 200,000,000 200,000,000
Huaneng Finance Wuhan Power 3.92 200,000,000 200,000,000
Huaneng Finance Yangliuqing Power 3.92 200,000,000 0
Huaneng Finance Yangliuqing Power 3.92 80,500,000 0
Huaneng Finance Yangliuqing Power 3.92 200,000,000 200,000,000
Huaneng Finance Yangliuqing Power 3.92 100,000,000 100,000,000
Huaneng Finance Tongxiang CGGT 4.13 100,000,000 0
Huaneng Finance Tongxiang CGGT 4.13 150,000,000 150,000,000
Huaneng Finance Xiangqi Hydropower 3.92 200,000,000 200,000,000
Huaneng Finance Suzhou Power  4.13  100,000,000  0
Huaneng Finance Suzhou Power  4.13 100,000,000  0
Huaneng Finance  Suzhou Power  4.13 70,000,000 0
Huaneng Finance Suzhou Power 4.13 100,000,000 100,000,000
Huaneng Finance Suzhou Power 4.13 100,000,000 100,000,000
Huaneng Finance Suzhou Power  4.13 70,000,000 70,000,000
 
75115
LenderBorrowerInterest RateLargest Amount Outstanding in 2016Outstanding Balance as of December 31, 2016
%(RMB)(RMB)

Lender
 
Borrower
 
Interest Rate
  
Largest Amount Outstanding in 2014
  
Outstanding Balance as of December 31, 2014
 
  
Huaiyin II Power Plant(1)
  5.700   1,560,000,000   - 
  
Huaiyin II Power Plant(1)
  5.885   1,420,000,000   1,200,000,000 
  
Taicang II Power Plant(1)
  5.700   600,000,000   - 
  
Taicang II Power Plant(1)
  5.700   100,000,000   - 
  
Taicang II Power Plant(1)
  6.000   100,000,000   - 
  
Taicang II Power Plant(1)
  6.600   70,000,000   - 
  
Taicang II Power Plant(1)
  5.885   200,000,000   200,000,000 
  
Taicang II Power Plant(1)
  5.350   100,000,000   100,000,000 
  
Taicang II Power Plant(1)
  6.600   50,000   - 
  Taicang Port(1)  6.600   50,000,000   - 
  
Qinbei Power Plant(1)
  5.175   4,200,000   4,200,000 
  
Qinbei Power Plant(1)
  5.600   1,100,000,000   - 
  
Qinbei Power Plant(1)
  5.600   1,000,000,000   - 
  
Qinbei Power Plant(1)
  6.000   1,000,000,000   - 
  
Qinbei Power Plant(1)
  5.350   1,100,000,000   1,100,000,000 
  
Qinbei Power Plant(1)
  5.350   500,000,000   500,000,000 
  
Yushe Power Plant(1)
  5.700   100,000,000   - 
  
Yushe Power Plant(1)
  5.700   100,000,000   - 
  
Yushe Power Plant(1)
  5.700   140,000,000   - 
  
Yushe Power Plant(1)
  5.700   70,000,000   - 
  
Yushe Power Plant(1)
  5.700   70,000,000   - 
  
Yushe Power Plant(1)
  5.700   265,000,000     
  
Yushe Power Plant(1)
  6.000   100,000,000   - 
  
Yushe Power Plant(1)
  5.600   300,000,000   - 
  
Yushe Power Plant(1)
  5.600   40,000,000   - 
  
Yushe Power Plant(1)
  5.600   160,000,000   - 
  
Yushe Power Plant(1)
  6.031   140,000,000   140,000,000 
  
Yushe Power Plant(1)
  5.762   200,000,000   200,000,000 
  
Yushe Power Plant(1)
  5.885   140,000,000   140,000,000 
  
Yushe Power Plant(1)
  5.350   265,000,000   265,000,000 
  
Yushe Power Plant(1)
  5.350   100,000,000   100,000,000 
  
Yushe Power Plant(1)
  5.350   340,000,000   340,000,000 
  
Yushe Power Plant(1)
  5.350   160,000,000   160,000,000 
  
Xindian Power Plant(1)
  6.000   170,000,000   - 
  
Xindian Power Plant(1)
  6.000   400,000,000   - 
  
Xindian Power Plant(1)
  5.700   85,000,000   - 
  
Xindian Power Plant(1)
  5.700   50,000,000   - 
  
Xindian Power Plant(1)
  5.700   50,000,000   - 
  
Xindian Power Plant(1)
  5.700   1,200,000,000   - 
  
Xindian Power Plant(1)
  5.350   1,285,000,000   1,285,000,000 
  
Xindian Power Plant(1)
  5.350   720,000,000   720,000,000 
  
Yueyang Power Plant(1)
  6.000   900,000,000   - 
  
Yueyang Power Plant(1)
  5.175   14,780,000   14,780,000 
  
Luohuang Power Plant(1)
  5.700   330,000,000   - 
  
Luohuang Power Plant(1)
  5.175   34,500,000   34,500,000 
  
Pingliang Power Plant(1)
  5.700   970,000,000   - 
  
Pingliang Power Plant(1)
  5.700   1,250,000,000   - 
  
Pingliang Power Plant(1)
  5.600   100,000,000   - 
  
Pingliang Power Plant(1)
  5.350   970,000,000   970,000,000 
  
Pingliang Power Plant(1)
  5.350   1,250,000,000   1,250,000,000 
  
Pingliang Power Plant(1)
  5.350   100,000,000   100,000,000 
  
Shidongkou Power(1)
  5.175   5,160,000   5,160,000 
  
Daditaihong(1)
  5.600   88,000,000   - 
  
Daditaihong(1)
  5.600   140,000,000   - 
  
Daditaihong(1)
  5.700   67,000,000   - 
  
Daditaihong(1)
  5.700   200,000,000   - 
  
Daditaihong(1)
  5.762   34,000,000   34,000,000 

Huaneng Finance Xindian Power 4.13 0 0
Huaneng Finance Xindian Power 4.13 200,000,000 100,000,000
Huaneng Finance Xindian Power 4.13 100,000,000 100,000,000
Huaneng Finance  Hainan Power 3.92 200,000,000 0
Huaneng Finance Jingmen Power 3.92 400,000,000 200,000,000
Huaneng Finance Luohuang Power 3.92 200,000,000 0
Huaneng Finance Luohuang Power 3.92 100,000,000 0
Huaneng Finance Luohuang Power 3.92 100,000,000 0
Huaneng Finance Luohuang Power 3.92 200,000,000 200,000,000
Huaneng Finance Luohuang Power 3.92 100,000,000 100,000,000
Huaneng Finance Hualiangting Power 4.13 5,000,000 5,000,000
Huaneng Finance Hualiangting Power 4.13 5,000,000 0
Huaneng Finance Yingcheng Thermal Power 3.92 60,000,000 60,000,000
Huaneng Finance Yingcheng Thermal Power 3.92 0 0
Huaneng Finance Yingcheng Thermal Power 3.92 40,000,000 40,000,000
Huaneng Finance Pingliang Power 3.92 100,000,000 0
Huaneng Finance Pingliang Power 3.92 100,000,000 0
Huaneng Finance Pingliang Power 3.92 100,000,000 100,000,000
Huaneng Finance Pingliang Power 3.92 100,000,000 100,000,000
Huaneng Finance Pingliang Power 3.92 100,000,000 100,000,000
Huaneng Group The Company 4.75 640,484,600 640,484,600
Huaneng Group Wuhan Power 4.75 24,530,000 24,530,000
The Company Yuwang Energy 4.75 1,047,000,000 922,500,000
The Company Yuwang Energy 4.51 100,000,000 100,000,000
The Company Yuwang Energy 4.28 78,000,000 78,000,000
The Company Yuwang Energy 4.28 60,000,000 60,000,000
The Company Yuwang Energy 4.35 60,000,000 60,000,000
The Company Yuwang Energy 4.28 15,000,000 15,000,000
The Company Yuwang Energy 4.75 227,000,000 -
The Company Yuwang Energy 4.75 100,500,000 -
The Company Yuwang Energy 4.75 88,000,000 -
The Company Yuwang Energy 5.1 500,000,000 -
The Company Yuwang Energy 5.06 250,000,000 -
The Company Yuwang Energy 4.35 100,000,000 -
The Company Yuwang Energy 5.06 40,000,000 -
The Company Yuwang Energy 4.35 11,000,000 -
The Company Huaide Wind Power 4.35 140,000,000 140,000,000
The Company Huaide Wind Power 4.51 170,000,000 130,000,000
The Company Huaide Wind Power 4.35 30,000,000 30,000,000
The Company Huaide Wind Power 4.35 140,000,000 -
The Company Huaide Wind Power 4.35 68,000,000 -
The Company Dalian Power 4.51 21,000,000 -
The Company Wafangdian Wind Power 4.35 112,500,000 -
The Company Fujian Harbour 4.35 1,561,800,000 1,561,800,000
The Company Fujian Harbour 4.35 188,000,000 188,000,000
The Company Fujian Harbour 4.35 21,000,000 21,000,000
The Company Fujian Harbour 4.35 20,000,000 20,000,000
The Company Fujian Harbour 4.35 20,000,000 20,000,000
The Company Fujian Harbour 4.35 5,000,000 5,000,000
The Company Fujian Harbour 5.70 780,000,000 -
The Company Fujian Harbour 4.66 780,000,000 -
The Company Fujian Harbour 4.66 303,000,000 -
The Company Fujian Harbour 4.66 246,800,000 -
The Company Fujian Harbour 5.70 208,800,000 -
The Company Fujian Harbour 5.10 132,000,000 -
The Company Fujian Harbour 5.70 90,000,000 -
The Company Fujian Harbour 6.46 70,000,000 -
The Company Fujian Harbour 5.70 50,000,000 -
The Company Fujian Harbour 5.70 50,000,000 -
The Company Fujian Harbour 5.70 43,000,000 -
The Company Fujian Harbour 5.70 40,000,000 -
The Company Fujian Harbour 5.70 38,000,000 -
The Company Fujian Harbour 5.70 30,000,000 -
The Company Fujian Harbour 4.35 20,000,000 -
The Company Shanghai Shidongkou 4.28 5,160,000 -
The Company Linggang Co-generation CCGT 4.51 555,000,000 510,000,000
The Company Linggang Co-generation CCGT 4.13 400,000,000 -
The Company Fuyuan Wind Power 4.60 40,000,000 -
 
76116
LenderBorrowerInterest RateLargest Amount Outstanding in 2016Outstanding Balance as of December 31, 2016
%(RMB)(RMB)

Lender Borrower Interest Rate  Largest Amount Outstanding in 2014  Outstanding Balance as of December 31, 2014 
  
Daditaihong(1)
  5.885   200,000,000   200,000,000 
  
Daditaihong(1)
  5.350   140,000,000   140,000,000 
  
Daditaihong(1)
  5.350   68,000,000   68,000,000 
  
Qidong Wind Power(1)
  5.600   360,000,000   - 
  
Qidong Wind Power(1)
  5.350   360,000,000   360,000,000 
  
Qidong Wind Power(1)
  5.350   40,000,000   40,000,000 
  
Yangliuqing Co-generation(1)
  5.580   170,000,000   - 
  
Yangliuqing Co-generation(1)
  5.175   4,390,000   4,390,000 
  
Xiangqi Hydropower(1)
  5.700   100,000,000   - 
  
Xiangqi Hydropower(1)
  5.700   50,000,000   - 
  
Xiangqi Hydropower(1)
  5.700   10,000,000   - 
  
Xiangqi Hydropower(1)
  5.700   10,000,000   - 
  
Xiangqi Hydropower(1)
  5.700   30,000,000   - 
  
Xiangqi Hydropower(1)
  5.600   200,000,000   - 
  
Xiangqi Hydropower(1)
  6.462   100,000,000   - 
  
Xiangqi Hydropower(1)
  5.762   10,000,000   10,000,000 
  
Xiangqi Hydropower(1)
  5.885   100,000,000   100,000,000 
  
Xiangqi Hydropower(1)
  5.885   10,000,000   10,000,000 
  
Xiangqi Hydropower(1)
  5.350   200,000,000   200,000,000 
  
Xiangqi Hydropower(1)
  5.350   20,000,000   20,000,000 
  
Yingkou Co-generation(1)
  5.200   700,000,000   700,000,000 
  
Yingkou Co-generation(1)
  3.720   700,000,000   - 
  
Yingkou Co-generation(1)
  5.600   500,000,000   - 
  
Yingkou Co-generation(1)
  5.350   500,000,000   500,000,000 
  
Zuoquan Power Plant(1)
  5.600   400,000,000   - 
  
Zuoquan Power Plant(1)
  5.700   200,000,000   - 
  
Zuoquan Power Plant(1)
  5.600   500,000,000   - 
  
Zuoquan Power Plant(1)
  5.600   200,000,000   - 
  
Zuoquan Power Plant(1)
  5.320   1,270,000,000   - 
  
Zuoquan Power Plant(1)
  5.350   300,000,000   300,000,000 
  
Zuoquan Power Plant(1)
  5.350   600,000,000   600,000,000 
  
Zuoquan Power Plant(1)
  5.350   500,000,000   500,000,000 
  
Zuoquan Power Plant(1)
  5.350   1,000,000,000   1,000,000,000 
  
Kangbao Wind Power(1)
  6.000   15,000,000   - 
  
Wafangdian Wind Power(1)
  5.600   172,500,000   - 
  
Wafangdian Wind Power(1)
  5.350   142,500,000   142,500,000 
  
Changtu Wind Power(1)
  6.000   24,000,000   - 
  
Changtu Wind Power(1)
  5.762   20,000,000   20,000,000 
  
Changtu Wind Power(1)
  5.885   48,000,000   48,000,000 
  
Changtu Wind Power(1)
  5.885   50,000,000   50,000,000 
  
Changtu Wind Power(1)
  5.350   8,000,000   8,000,000 
  
Changtu Wind Power(1)
  5.350   27,000,000   27,000,000 
  
Haimen Port(1)
  5.700   9,000,000   - 
The Company Fuyuan Wind Power 4.75 10,000,000 -
The Company Diandong Energy 4.75 2,271,000,000 2,271,000,000
The Company Diandong Energy 4.28 1,000,000,000 1,000,000,000
The Company Diandong Energy 4.28 350,000,000 350,000,000
The Company Diandong Energy 4.35 380,000,000 230,000,000
The Company Diandong Energy 4.75 300,000,000 170,000,000
The Company Diandong Energy 4.35 125,000,000 125,000,000
The Company Diandong Energy 4.28 122,000,000 122,000,000
The Company Diandong Energy 4.28 122,000,000 122,000,000
The Company Diandong Energy 4.75 100,000,000 100,000,000
The Company Diandong Energy 4.75 100,000,000 100,000,000
The Company Diandong Energy 4.75 82,000,000 82,000,000
The Company Diandong Energy 4.75 210,000,000 -
The Company Diandong Energy 4.60 200,000,000 -
The Company Diandong Energy 4.60 150,000,000 -
The Company Diandong Energy 4.75 100,000,000 -
The Company Diandong Energy 3.95 1,000,000,000 -
The Company Diandong Energy 4.35 210,000,000 -
The Company Diandong Energy 4.60 200,000,000 -
The Company Diandong Energy 4.60 200,000,000 -
The Company Luhe Wind Power 4.35 10,000,000 10,000,000
The Company Qidong Wind Power 4.35 360,000,000 360,000,000
The Company Qidong Wind Power 4.35 40,000,000 25,000,000
The Company Qidong Wind Power 4.35 360,000,000 -
The Company Qidong Wind Power 4.35 40,000,000 -
The Company Dongshan CCGT 4.51 234,396,000 234,396,000
The Company Dongshan CCGT 4.51 150,000,000 150,000,000
The Company Dongshan CCGT 4.51 65,604,000 65,604,000
The Company Dongshan CCGT 4.51 50,000,000 50,000,000
The Company Dongshan CCGT 4.35 165,000,000 -
The Company Dongshan CCGT 4.35 80,000,000 -
The Company Rudong Wind Power 4.28 270,000,000 -
The Company Rudong Wind Power 4.28 140,000,000 -
The Company Rudong Wind Power 4.28 50,000,000 -
The Company Rudong Wind Power 4.35 100,000,000 100,000,000
The Company Rudong Wind Power 4.35 100,000,000 85,000,000
The Company Rudong Wind Power 4.35 100,000,000 -
The Company Rudong Wind Power 4.35 100,000,000 -
The Company Weihai Power 5.54 24,203,000 -
The Company Anhui Power 4.35 190,000,000 -
The Company Anyuan Power 4.35 150,000,000 -
The Company Anyuan Power 4.35 50,000,000 -
The Company Taihang Power 4.35 50,000,000 -
The Company Zuoquan Power 4.35 1,000,000,000 1,000,000,000
The Company Zuoquan Power 4.35 900,000,000 900,000,000
The Company Zuoquan Power 4.35 1,900,000,000 -
The Company Pingliang Power 4.75 2,320,000,000 2,320,000,000
The Company Pingliang Power 4.60 1,250,000,000 -
The Company Pingliang Power 4.60 970,000,000 -
The Company Haimen Port 4.51 160,000,000 160,000,000
The Company Haimen Port 4.35 410,000,000 -
The Company Guangdong Power 4.35 190,000,000 -
The Company Changtu Wind Power 4.51 118,000,000 -
The Company Changtu Wind Power 4.35 35,000,000 -
The Company Guilin Power 4.35 20,000,000 -
The Company Tongxiang CGGT 4.35 400,000,000 400,000,000
The Company Tongxiang CGGT 4.35 700,000,000 70,000,000
The Company Tongxiang CGGT 4.35 300,000,000 -
The Company Tongxiang CGGT 4.35 100,000,000 -
The Company Tongxiang CGGT 4.35 50,000,000 -
The Company Tongxiang CGGT 4.35 30,000,000 -
The Company Yushe Power 4.28 765,000,000 765,000,000
The Company Yushe Power 4.51 200,000,000 200,000,000
The Company Yushe Power 4.51 140,000,000 140,000,000
The Company Yushe Power 4.75 140,000,000 140,000,000
The Company Yushe Power 4.28 100,000,000 100,000,000
The Company Yushe Power 4.13 100,000,000 100,000,000
The Company Yushe Power 4.13 500,000,000 -
The Company Yushe Power 4.13 365,000,000 -
The Company Yushe Power 4.79 140,000,000 -
The Company Yushe Power 4.35 140,000,000 -
The Company Yushe Power 4.35 100,000,000 -
 
77117
LenderBorrowerInterest RateLargest Amount Outstanding in 2016Outstanding Balance as of December 31, 2016
%(RMB)(RMB)

Lender Borrower Interest Rate  Largest Amount Outstanding in 2014  Outstanding Balance as of December 31, 2014 
  
Haimen Port(1)
  5.700   14,000,000   - 
  
Haimen Port(1)
  5.700   20,000,000   - 
  
Haimen Port(1)
  5.700   15,000,000   - 
  
Haimen Port(1)
  5.700   40,000,000   - 
  
Haimen Port(1)
  5.700   20,000,000   - 
  
Haimen Port(1)
  6.000   120,000,000   - 
  
Haimen Port(1)
  5.700   42,000,000   - 
  
Haimen Port(1)
  5.600   240,000,000   - 
  
Haimen Port(1)
  5.762   160,000,000   160,000,000 
  
Haimen Port(1)
  5.885   24,000,000   24,000,000 
  
Haimen Port(1)
  5.600   10,000,000   - 
  
Haimen Port(1)
  5.350   120,000,000   120,000,000 
  
Haimen Port(1)
  5.600   30,000,000   - 
  
Haimen Port(1)
  5.350   280,000,000   280,000,000 
  
Rudong Wind Power(1)
  5.700   20,000,000   - 
  
Rudong Wind Power(1)
  5.700   10,000,000   - 
  
Rudong Wind Power(1)
  5.700   20,000,000   - 
  
Rudong Wind Power(1)
  5.700   100,000,000   - 
  
Rudong Wind Power(1)
  5.350   100,000,000   100,000,000 
  
Zhanhua Co-generation(1)
  6.000   750,000,000   750,000,000 
  
Zhanhua Co-generation(1)
  6.000   200,000,000   200,000,000 
  
Zhanhua Co-generation(1)
  5.320   300,000,000   300,000,000 
  
Hualu Sea Transportation(1)
  5.700   35,000,000   - 
  
Hualu Sea Transportation(1)
  5.700   130,000,000   - 
  
Hualu Sea Transportation(1)
  5.762   35,000,000   35,000,000 
  
Hualu Sea Transportation(1)
  5.885   130,000,000   130,000,000 
  
Fujian Port(1)
  5.700   43,000,000   - 
  
Fujian Port(1)
  5.700   780,000,000   - 
  
Fujian Port(1)
  5.700   208,800,000   - 
  
Fujian Port(1)
  5,700   90,000,000   - 
  
Fujian Port(1)
  5.700   30,000,000   - 
  
Fujian Port(1)
  5.700   40,000,000   - 
  
Fujian Port(1)
  5.700   50,000,000   - 
  
Fujian Port(1)
  5.700   38,000,000   - 
  
Fujian Port(1)
  5.700   50,000,000   - 
  
Fujian Port(1)
  6.000   132,000,000   132,000,000 
  
Fujian Port(1)
  6.462   70,000,000   70,000,000 
  
Fujian Port(1)
  6.462   780,000,000   780,000,000 
  
Fujian Port(1)
  6.462   303,000,000   303,000,000 
  
Fujian Port(1)
  6.462   246,800,000   246,800,000 
  
Diandong Energy(1)
  5.700   100,000,000   - 
  
Diandong Energy(1)
  5.201   1,000,000,000   1,000,000,000 
  
Diandong Energy(1)
  5.700   60,000,000   - 
  
Diandong Energy(1)
  5.700   60,000,000   - 
  
Diandong Energy(1)
  6.000   175,000,000   - 
  
Diandong Energy(1)
  5.600   100,000,000   - 
  
Diandong Energy(1)
  5.600   1,000,000,000   - 
  
Diandong Energy(1)
  6.462   200,000,000   - 
  
Diandong Energy(1)
  5.762   100,000,000   100,000,000 
  
Diandong Energy(1)
  5.885   150,000,000   150,000,000 
  
Diandong Energy(1)
  5.885   20,000,000   20,000,000 
  
Diandong Energy(1)
  5.350   100,000,000   100,000,000 
  
Diandong Energy(1)
  5.350   200,000,000   200,000,000 
  
Diandong Energy(1)
  5.350   200,000,000   200,000,000 
  
Diandong Energy(1)
  5.350   148,000,000   148,000,000 
  
Diandong Energy(1)
  5.350   1,100,000,000   1,100,000,000 
The Company Shantou Haimen Power  5.19 600,000,000 600,000,000
The Company Shantou Haimen Power  4.35 500,000,000 500,000,000
The Company Shantou Haimen Power  5.19 1,400,000,000 270,000,000
The Company Shantou Haimen Power   6.94 1,000,000,000  -
The Company Shantou Haimen Power 4.35 330,000,000 -
The Company Shantou Haimen Power 4.35 300,000,000 -
The Company Shantou Haimen Power 4.35 250,000,000 -
The Company Shantou Haimen Power 4.35 70,000,000 -
The Company Jiangxi Clean Energy 4.35 30,000,000 30,000,000
The Company Jiangxi Clean Energy 4.35 20,000,000 -
The Company Qinbei Power 4.35 700,000,000 700,000,000
The Company Qinbei Power 4.35 700,000,000 700,000,000
The Company Qinbei Power 4.75 4,200,000 4,200,000
The Company Qinbei Power 4.35 1,400,000,000 -
The Company Qinbei Power 4.28 4,200,000 -
The Company Zhanhua Co-generation 4.75 1,250,000,000 1,250,000,000
The Company Zhanhua Co-generation 4.37 300,000,000 -
The Company Huaiyin II Power 4.51 450,000,000 400,000,000
The Company Huaiyin II Power 4.75 450,000,000 150,000,000
The Company Huaiyin II Power 4.75 50,000,000 50,000,000
The Company Huaiyin II Power 4.35 450,000,000 -
The Company Yueyang Power 4.75 14,780,000 14,780,000
The Company Yueyang Power 4.28 14,780,000 -
The Company Guidong Wind Power 4.60 60,000,000 -
The Company Xiangqi Hydropower 4.51 120,000,000 70,000,000
The Company Xiangqi Hydropower 4.35 20,000,000 20,000,000
The Company Xiangqi Hydropower 4.35 200,000,000 -
The Company Xiangqi Hydropower 4.35 20,000,000 -
The Company Xiangqi Hydropower 4.35 20,000,000 -
The Company Xiangqi Hydropower 4.35 20,000,000 -
The Company Subaoding Wind Power 4.35 50,000,000 -
The Company Guanyun Co-generation 4.35 50,000,000 50,000,000
The Company Guanyun Co-generation 4.35 40,000,000 40,000,000
The Company Guanyun Co-generation 4.35 10,000,000 10,000,000
The Company Guanyun Co-generation 4.35 64,000,000 -
The Company Ruijin Power 4.85 100,000,000 -
The Company Luoyuan Power 4.13 190,000,000 -
The Company Luoyuan Power 4.13 147,000,000 -
The Company Luoyuan Power 4.35 130,000,000 -
The Company Luoyuan Power 4.13 80,000,000 -
The Company Luoyuan Power 4.35 65,000,000 -
The Company Luoyuan Power 4.35 60,000,000 -
The Company Luoyuan Power 4.35 50,000,000 -
The Company Luoyuan Power 4.35 35,000,000 -
The Company Luoyuan Power 4.35 10,000,000 -
The Company Suzihe Hydropower 4.28 190,890,000 190,890,000
The Company Suzihe Hydropower 4.35 4,900,000 4,900,000
The Company Suzihe Hydropower 4.35 4,900,000 4,900,000
The Company Suzihe Hydropower 4.35 4,900,000 4,900,000
The Company Suzihe Hydropower 4.35 400,890,000 -
The Company Suzhou Power 4.35 100,000,000 -
The Company Suzhou CCGT 4.35 8,000,000 8,000,000
The Company Suzhou CCGT 4.35 220,000,000 -
The Company Suzhou CCGT 4.35 20,000,000 -
The Company Suzhou CCGT 4.35 7,000,000 -
The Company Suzhou CCGT 4.35 3,000,000 -
The Company Yingkou Xianrendao Co-generation 4.51 40,000,000 -
The Company Yingkou Co-generation 5.20 700,000,000 700,000,000
The Company Yingkou Co-generation 4.35 500,000,000 -
The Company Yingkou Co-generation 4.35 310,000,000 -
The Company Panxian Wind Power 4.35 54,000,000 -
The Company Panxian Wind Power 4.35 10,000,000 -
The Company Panxian Wind Power 4.51 5,000,000 -
The Company Xindian Power 4.75 1,425,000,000 1,340,000,000
The Company Xindian Power 4.35 1,285,000,000 -
The Company Xindian Power 4.35 720,000,000 -
The Company Liangjiang CCGT 4.35 300,000,000 -
The Company Liangjiang CCGT 4.35 230,000,000 -
The Company Liangjiang CCGT 5.35 200,000,000 -
The Company Liangjiang CCGT 4.35 131,000,000 -
The Company Liangjiang CCGT 4.35 130,000,000 -
The Company Liangjiang CCGT 5.08 50,000,000 -
 
78118

Lender Borrower Interest Rate  Largest Amount Outstanding in 2014  Outstanding Balance as of December 31, 2014 
  
Yuwang Energy(1)
  5.320   200,000,000   - 
  
Yuwang Energy(1)
  5.320   90,000,000   - 
  
Yuwang Energy(1)
  5.600   500,000,000   - 
  
Yuwang Energy(1)
  5.762   300,000,000   100,000,000 
  
Yuwang Energy(1)
  5.885   40,000,000   40,000,000 
  
Yuwang Energy(1)
  5.350   60,000,000   60,000,000 
  
Yuwang Energy(1)
  5.350   60,000,000   60,000,000 
  
Yuwang Energy(1)
  5.350   60,000,000   60,000,000 
  
Yuwang Energy(1)
  5.885   250,000,000   250,000,000 
  
Yuwang Energy(1)
  5.350   480,000,000   480,000,000 
  
Suzihe Hydropower(1)
  6.000   350,400,000   - 
  
Suzihe Hydropower(1)
  5.350   367,100,000   367,100,000 
  
Suzihe Hydropower(1)
  5.350   33,790,000   33,790,000 
  
Enshi Maweigou Hydropower(1)
  5.700   10,000,000   - 
  
Enshi Maweigou Hydropower(1)
  5.700   5,000,000   - 
  
Enshi Maweigou Hydropower(1)
  5.700   100,000,000   - 
  
Enshi Maweigou Hydropower(1)
  5.700   10,000,000   - 
  
Enshi Maweigou Hydropower(1)
  5.700   5,000,000   - 
  
Enshi Maweigou Hydropower(1)
  6.000   234,000,000   - 
  
Enshi Maweigou Hydropower(1)
  6.000   10,000,000   - 
  
Enshi Maweigou Hydropower(1)
  6.462   5,000,000   - 
  
Enshi Maweigou Hydropower(1)
  6.462   10,000,000   - 
  
Enshi Maweigou Hydropower(1)
  6.462   10,000,000   - 
  
Enshi Maweigou Hydropower(1)
  6.462   10,000,000   - 
  
Enshi Maweigou Hydropower(1)
  6.462   40,000,000   - 
  
Enshi Maweigou Hydropower(1)
  6.600   20,000,000   - 
  
Tongxiang CCGT(1)
  5.700   142,000,000   - 
  
Tongxiang CCGT(1)
  5.700   108,000,000   - 
  
Tongxiang CCGT(1)
  5.600   140,000,000   - 
  
Tongxiang CCGT(1)
  5.600   260,000,000   - 
  
Tongxiang CCGT(1)
  6.462   40,000,000   - 
  
Tongxiang CCGT(1)
  5.350   80,000,000   80,000,000 
  
Tongxiang CCGT(1)
  5.350   30,000,000   30,000,000 
  
Tongxiang CCGT(1)
  5.350   200,000,000   200,000,000 
  
Qingdao Co-generation(1)
  5.700   20,000,000   - 
  
Qingdao Co-generation(1)
  5.432   50,000,000   50,000,000 
  
Qingdao Co-generation(1)
  5.350   20,000,000   20,000,000 
  
Liangjiang CCGT(1)
  5.700   150,000,000   - 
  
Liangjiang CCGT(1)
  5.700   300,000,000   - 
  
Liangjiang CCGT(1)
  5.700   252,000,000   - 
  
Liangjiang CCGT(1)
  5.700   5,000,000   - 
79

Lender Borrower Interest Rate  Largest Amount Outstanding in 2014  Outstanding Balance as of December 31, 2014 
  
Liangjiang CCGT(1)
  5.700   23,000,000   - 
  
Liangjiang CCGT(1)
  5.700   30,000,000   - 
  
Liangjiang CCGT(1)
  5.700   40,000,000   - 
  
Liangjiang CCGT(1)
  5.600   30,000,000   30,000,000 
  
Liangjiang CCGT(1)
  5.320   200,000,000   200,000,000 
  
Jiangxi Clean Energy(1)
  5.600   20,000,000   - 
  
Jiangxi Clean Energy(1)
  6.031   5,000,000   5,000,000 
  
Jiangxi Clean Energy(1)
  5.762   10,000,000   10,000,000 
  
Jiangxi Clean Energy(1)
  5.762   10,000,000   10,000,000 
  
Jiangxi Clean Energy(1)
  5.350   20,000,000   20,000,000 
  
Suzhou CCGT(1)
  5.600   180,000,000   - 
  
Suzhou CCGT(1)
  5.600   20,000,000   - 
  
Suzhou CCGT(1)
  5.600   20,000,000   - 
  
Suzhou CCGT(1)
  5.762   67,264,000   67,264,000 
  
Suzhou CCGT(1)
  5.350   220,000,000   220,000,000 
  
Subaoding Wind Power(1)
  5.700   20,000,000   - 
  
Subaoding Wind Power(1)
  5.700   52,000,000   - 
  
Subaoding Wind Power(1)
  6.462   20,000,000   - 
  
Dongshan CCGT(1)
  5.600   120,000,000   - 
  
Dongshan CCGT(1)
  5.885   50,000,000   50,000,000 
  
Dongshan CCGT(1)
  5.885   30,000,000   30,000,000 
  
Dongshan CCGT(1)
  5.350   11,000,000   11,000,000 
  
Dongshan CCGT(1)
  5.350   34,000,000   34,000,000 
  
Dongshan CCGT(1)
  5.600   200,000,000   - 
  
Dongshan CCGT(1)
  5.350   120,000,000   120,000,000 
  
International Fuel(1)
  6.462   500,000,000   - 
  
International Fuel(1)
  6.462   500,000,000   - 
  
Fuyuan Wind Power(1)
  5.350   20,000,000   20,000,000 
  
Fuyuan Wind Power(1)
  5.762   30,000,000   30,000,000 
  
Fuyuan Wind Power(1)
  5.885   70,000,000   70,000,000 
  
Fuyuan Wind Power(1)
  5.350   32,000,000   32,000,000 
  
Fuyuan Wind Power(1)
  5.885   30,000,000   30,000,000 
  
Haimen Power(1)
  6.250   1,400,000,000   1,120,000,00 
  
Haimen Power(1)
  6.939   1,000,000,000   - 
  
Haimen Power(1)
  6.250   600,000,000   600,000,000 
  
Haimen Power(1)
  5.350   160,000,000   160,000,000 
  
Haimen Power(1)
  5.350   240,000,000   240,000,000 
  
Haimen Power(1)
  5.350   110,000,000   110,000,000 
  
Haimen Power(1)
  5.350   730,000,000   730,000,000 
  
Luoyang Co-generation(1)
  6.490   20,000,000   20,000,000 
  
Luoyang Co-generation(1)
  6.462   80,000,000   80,000,000 
  
Yingkou Port(1)
  5.885   30,000,000   30,000,000 
  
Yingkou Port(1)
  5.885   50,000,000   50,000,000 
  
Yingkou Xianrendao Co-generation(1)
  5.885   40,000,000   40,000,000 
  
Yingkou Xianrendao Co-generation(1)
  5.885   16,250,000   16,250,000 
  
Guidong Wind Power(1)
  5.762   10,000,000   10,000,000 
  
Guidong Wind Power(1)
  5.350   40,000,000   40,000,000 
  
Guidong Wind Power(1)
  5.350   60,000,000   60,000,000 
  
Luhe Wind Power(1)
  5.762   10,000,000   10,000,000 
  
Luhe Wind Power(1)
  5.762   10,000,000   10,000,000 
80

Lender Borrower Interest Rate  Largest Amount Outstanding in 2014  Outstanding Balance as of December 31, 2014 
  
Mianchi Co-generation(1)
  5.885   100,000,000   100,000,000 
  
Mianchi Co-generation(1)
  5.885   80,000,000   80,000,000 
  
Mianchi Co-generation(1)
  5.885   20,000,000   20,000,000 
  
Mianchi Co-generation(1)
  5.885   50,000,000   50,000,000 
  
Mianchi Co-generation(1)
  5.885   50,000,000   50,000,000 
  
Anbei Third Wind Power(1)
  6.000   80,000,000   - 
  
Anbei Third Wind Power(1)
  5.350   100,000,000   100,000,000 
  
Jingling Power(1)
  6.000   300,000,000   - 
  
Panxian Wind Power(1)
  5.885   10,000,000   10,000,000 
  
Panxian Wind Power(1)
  5.885   10,000,000   10,000,000 
  
Panxian Wind Power(1)
  5.885   20,000,000   20,000,000 
  
Panxian Wind Power(1)
  5.600   36,000,000   - 
  
Nanjing CCGT(1)
  6.000   400,000,000   400,000,000 
  
Huaining Wind Power(1)
  6.600   10,000,000   10,000,000 
  
Si'an Photovoltaic(1)
  5.350   18,000,000   18,000,000 
               
Note:
(1)LenderThese entities are subsidiariesBorrowerInterest RateLargest Amount Outstanding in 2016Outstanding Balance as of the Company.December 31, 2016
%(RMB)(RMB)
The Company Liangjiang CCGT 5.08 50,000,000 -
The Company Luohuang Power 4.75 34,500,000 34,500,000
The Company Luohuang Power 4.28 34,500,000 -
The Company Changxing Power 4.35 140,000,000 -
The Company Jieshan Wind Power 4.35 20,000,000 -
The Company Qingdao Co-generation 4.75 50,000,000 50,000,000
The Company Qingdao Co-generation 4.51 12,000,000 12,000,000
The Company Qingdao Co-generation 4.35 50,000,000 -
The Company Yangliuqing Power 4.75 4,390,000 4,390,000
The Company Yangliuqing Power 4.28 4,390,000 -
The Company Hualu Sea Transportation 4.51 130,000,000 130,000,000
The Company Hualu Sea Transportation 4.51 35,000,000 35,000,000
The Company Hualu Sea Transportation 4.79 130,000,000 -
The Company Enshi Maweigou Hydropower 4.51 12,000,000 12,000,000
The Company Enshi Maweigou Hydropower 4.35 12,000,000 12,000,000
The Company Enshi Maweigou Hydropower 4.51 10,000,000 10,000,000
The Company Enshi Maweigou Hydropower 4.51 502,000,000 -
The Company Dalongtan Hydropower 4.35 30,000,000 -
The Company Dalongtan Hydropower 4.51 5,000,000 -
The Company Huaqing Energy 4.51 12,000,000 12,000,000
The Company Huaqing Energy 4.51 10,000,000 10,000,000
The Company Huaqing Energy 4.51 10,000,000 10,000,000
The Company Huaqing Energy 4.51 8,000,000 8,000,000
Tiancheng Financial Leasing Yuwang Energy 4.42 200,000,000 195,500,000
Tiancheng Financial Leasing Yuwang Energy 4.42 200,000,000 196,100,000
Tiancheng Financial Leasing Yuwang Energy 4.42 540,000,000 532,800,000
Tiancheng Financial Leasing Yuwang Energy 4.42 560,000,000 552,800,000
Tiancheng Financial Leasing Pingliang Power 4.42 100,000,000 85,000,000
Tiancheng Financial Leasing Pingliang Power 4.42 260,000,000 232,631,578
Tiancheng Financial Leasing Diandong Energy 4.42 500,000,000 486,500,000
Tiancheng Financial Leasing Diandong Energy 4.42 300,000,000 291,750,000
Tiancheng Financial Leasing Diandong Energy 4.42 175,000,000 171,700,000
Tiancheng Financial Leasing Diandong Energy 4.42 125,000,000 122,800,000
Xi’an Thermal Power Research Institute The Company 3.92 100,000,000 100,000,000
 
Lease Agreement
Pursuant toOn August 2, 2016, we entered into a leasing agreement and a supplemental agreement entered into by Huaneng Property Co., Ltd. (formerly known as Beijing Huaneng Mansion Construction and Management Co., Ltd.) and us on April 1, 2010 and July 1, 2011, respectively, Huaneng Construction agreed to lease the designated offices of Huaneng Mansion to us until March 31, 2014.  On April 1, 2014, we renewed the leasingproperty management agreement with Huaneng Property Co., Ltd. with, pursuant to which a total leasing area of 30,428.7030,465.70 square meters for three years. After renewal, such leasing agreementin Huaneng Mansion will expire on March 31, 2017be leased to us and the annual rent (including the property management fee) is RMB116.62 million.RMB 114.54 million, effective from July 1, 2016 to June 30, 2019.
Transactions with Huaneng Group
On December 27, 2013,November 25, 2015, we entered into the Framework Agreement with Huaneng Group, our ultimate controlling shareholder, for a term commencing on January 1, 20142016 and expiring on December 31, 2014.2016. Pursuant to the Huaneng Group Framework Agreement, we will conduct the following transactions with Huaneng Group and its subsidiaries and associates: (i) the purchase of ancillary equipment and parts; (ii) the purchase of coal and transportation services; (iii) the sale of products; (iv) leasing of facilities, land and office spaces; (v) purchase of technical services, engineering contracting services and other services; (vi) the provision of entrusted sale servicesservices; (vii) deposits of the Company and (vii) trust loansits subsidiaries; and (viii) entrusted sale service.
On October 14, 2016, the entrusted loan. On November 19, 2014, we renewedCompany signed an agreement for the Huaneng Group Framework Agreementtransfer of equity interests in certain companies with Huaneng Group (the “Transfer Agreement”) and a profit forecasting compensation agreement with Huaneng Group in Beijing. Pursuant to the transfer agreement, the Company agreed to purchase (i) 80% equity interest of Huaneng Shandong Power Limited; (ii) 100% equity interest of Huaneng Jilin Power Limited; (iii) 100% equity interest of Huaneng Heilongjiang Power Limited; and (iv) 90% equity interest of Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. from Huaneng Group for a term commencingthe consideration of RMB15.114 billion. According to the terms of the agreements, the Company paid 50% of the consideration for such transaction to Huaneng Group on January 1, 2015 and expiring on December 31, 2015.
9, 2017.
Transactions with Huaneng Finance
On January 5, 2012,April 22, 2014, we entered into the Huaneng Finance Framework Agreement with Huaneng Finance, a subsidiary of Huaneng Group, for a term commencing on January 1, 20122015 and expiring on December 31, 2014.2017. Pursuant to the Huaneng Finance Framework Agreement, we will enter into the following transactions with Huaneng Finance: (i) placing cash deposits by us with Huaneng Finance; (ii) provision of discounting services by Huaneng Finance to us; and (iii) provision of loan advancement by Huaneng Finance to us. Such transactions will be conducted on an on-going basis and will constitute continuing connected transactions under the Hong Kong Listing Rules. During the period from 20122015 to 2014,2017, the maximum outstanding balance of the deposits to be placed with Huaneng Finance under the Huaneng Finance Framework Agreement, on a daily basis, will not exceed RMB6RMB8 billion. As of December 31, 2014,2016, we placed with Huaneng Finance current deposits of approximately RMB5,048.72RMB5,155.00 million, which bore interest rates ranging from 0.35% to 1.35% per annum.
Transactions with Jiangsu Guoxin
On December 27, 2013, we entered into a framework agreement with Jiangsu Province Guoxin Asset Management Group Company Limited (“Jiangsu Guoxin”) for a term commencing on January 1, 2014 and expiring on December 31, 2014, pursuant to which our Company and its subsidiaries will provide entrusted sale services to Jiangsu Guoxin. On November 19, 2014, we renewed the agreement with Jiangsu Guoxin for a term commencing on January 1, 2015 and expiring on December 31, 2015.

81119
Entrusted Management Agreement with Huaneng Group
WeOn January 29, 2015, we have entered into certain entrusted management agreement with Huaneng Group for a term of three years in connection with mutual management of electricity and coal assets. Services under such entrusted management arrangements include preliminary project planning, annual budget and comprehensive planning, power marketing, production management of power plants, construction management, financial management, human resources and labor wages management, administration management, legal service management, assets operation and shareholding management, information disclosure management, related party transaction management, risk and internal control management, general supervision, comprehensive affairs management and reporting/co-ordination management. By entering into these entrusted management arrangements, we aim to further improve the overall and management efficiency of our electricity and coal assets in several provinces via the province level management system of Huaneng Group.
Coal purchases and service fee occurred for transportation
In 2014,2016, we paid RMB373.88RMB14,502.83 million, RMB1,569.65RMB800.98 million, RMB84.01RMB1,467.84 million, RMB1,105.10RMB1,666.07 million and RMB2,705.87RMB2,472.71 million, respectively, to China Huaneng Group Fuel Co., Ltd., Huaneng Energy & Communications Holdings Co., Ltd. and its subsidiaries, Rizhao Power Company, North United Power Coal Transportation and Marketing Co., Ltd., Gansu Huating Coal Power Co., Ltd. and Shanghai Time Shipping for coal purchase and service fees incurred for transportation.
Transactions with Huaneng Group and HIPDC
On October 13, 2014, we entered into certain agreementsJune 21, 2016, the Company signed a capital increase agreement with Huaneng Group, onHIPDC, State Nuclear Power Technology Company (“SNPTC”) and Huaneng Shidaowan Nuclear Power Development Co., Ltd. (“Shidaowan Nuclear”) (“Capital Increase Agreement”). Pursuant to the transfercapital increase agreement, the parties agreed to contribute the new capital in cash in proportion to their original shareholding in Shidaowan Nuclear. The Company agreed to subscribe an aggregate RMB 135.000 million of equity interests in certain companies previously owned bythe new capital of Shidaowan Nuclear; Huaneng Group pursuantagreed to which we acquired fromsubscribe RMB 180.000 million; HIPDC agreed to subscribe RMB 135.000 million; SNPTC agreed to subscribe RMB 150.000 million. Upon completion of this capital increase, Shidaowan Nuclear’s investing parties and their shareholding percentages are as follows respectively: the Company (22.5%), Huaneng Group 91.8% equity interests in(30%), HIPDC (22.5%), and SNPTC (25%).

Transaction with Huaneng Hainan Power Inc., 75% equity interests in Huaneng Wuhan Power Generation Co. Ltd., 53.45% equity interests in Huaneng Suzhou Thermal Power Co. Ltd., 97% equity interests in Enshi Qingjiang Dalongtan Hydropower Development Co. Ltd. and 100% equity interests in Huaneng Hualiangting Hydropower Co., Ltd. for the consideration of RMB7,337,647,400.Nuclear

On October 13, 2014, we entered into certain agreementsMarch 22, 2016, the Company signed a capital increase agreement with HIPDC on the transfer of equity interests in certain companies previously owned by HIPDC, pursuant to which we acquired from HIPDC 60% equity interests in Huaneng ChaohuNuclear Power Generation Co.Development Company Ltd. (“Huaneng Nuclear”), 100% equity interests in Huaneng Ruijin Power Generation Co., Ltd., 100% equity interests in Huaneng Anyuan Power Generation Co., Ltd., 100% equity interests in Huaneng Jingmen ThermalChina National Nuclear Power Co., Ltd. (“China National Nuclear”) and 100% equity interestsHainan Nuclear Power Limited Liability Company (“Hainan Nuclear”) (“Capital Increase Agreement”). Pursuant to the capital increase agreement, parties agreed to contribute the new capital in cash in proportion to their original shareholding in Huaneng Yingcheng Thermal Power Co., Ltd.Nuclear. The Company agreed to subscribe for the considerationin aggregate RMB 123.696 million of RMB1,938,178,900.
Accordingpart new capital of Hainan Nuclear; China National Nuclear agreed to the aforesaid transfer agreements, we paid 50% of the consideration of these transactionssubscribe for RMB 210.283 milllion and Huaneng Nuclear agreed to Huaneng Group and HIPDC on January 8, 2015.subscribe for RMB 78,341 million. Upon the completion of these transactions, we increased a total installed operational capacity of 7,087.5 MW, installed attributable operational capacity of 5,737.7 MW,this capital increase, Hainan Nuclear’s investing parties and capacity under construction of 2,300 MW.
Establishing Joint Venture with Hua Neng HK
On November 19, 2014, we entered into a joint venture contract with Hua Neng HK to jointly establish Huaneng Rudong Baxianjiao Offshore Wind Powertheir shareholding percentages are respectively as follows: the Company Limited (“Baxianjiao Wind Power”(30%), pursuant to which, Baxianjiao Wind Power shall have registered capital of RMB610 million, we will hold 70% of its equity interestChina National Nuclear (51%) and contribute capital of RMB427 million, and Hua Neng HK will hold 30% of its equity interest and contribute capital equivalent to RMB 183 million by U.S. dollars cash remittance.Huaneng Nuclear (19%).
120
For a detailed discussion of related party transactions, see Note 35 to the Financial Statements.
C.C.            Interests of experts and counsel
Not applicable.
ITEM 8    Financial Information
ITEM 8Financial Information
A.A.            Consolidated statements and other financial information
See pages F-1 to F-105.
F-114.
Legal proceedings
Other than thatIn April 2015, a construction contractor of a subsidiary of the Company brought an arbitration application against the subsidiary due to its dispute on construction settlement, through which, the contractor required the subsidiary to indemnify an amount of approximately RMB83.46 million as construction payment and relevant interests incurred. As of December 31, 2016, it is difficult to estimate reasonably the financial effect arising from this outstanding arbitration since it is still pending for final judgment, therefore no provision has been provided for in respect thereof.

Save as disclosed under “Item 5. Operating and Financial Review and Prospects – G. Guarantees and pledges on loans and restricted assets”,above, as of December 31, 2016, we are not a defendant in any material litigation or arbitration and no litigation or claim of material importance is known to us or any member of the Board of Directorsdirectors of us to be pending or threatened against us.
Dividend distribution policy
Our articles of association clearly define our cash dividend policy, i.e. when our earnings and accumulative undistributable profits for the current year are positive, and on the condition that our cash flow can satisfy our normal operation and sustainable development, we shall adopt a cash dividend appropriation policy on the principle that the cash dividend payout will not be less than 50% of the distributable profit realized in the then-current year’syear's consolidated financial statement.

82
Our Board of Directors will determine the payment of dividends, if any, with respect to our shares on a per share basis. Any final dividend for a financial year shall be subject to shareholders’shareholders' approval. The Board may declare interim and special dividends at any time under general authorization by a shareholders’shareholders' ordinary resolution. A decision to declare or to pay any dividends in the future, and the amount of any dividends, will depend on our results of operations, cash flows, financial condition, future prospects and other factors which our Directors may determine as important.
For holders of our H shares, cash dividend payments, if any, shall be declared by our Board of Directors in Renminbi and paid in HK Dollars. The depositary will convert the HK Dollar dividend payments and distribute them to holders of ADSs in U.S. dollars, less expenses of conversion.
Dividends may be paid only out of our distributable profits (less allocation to the statutory funds of 10% of our net income determined in accordance with PRC GAAP) and may be subject to any applicable PRC withholding tax. Our Articles of Association limit our distributable profits to the lower of the amounts determined in accordance with PRC GAAP, and IFRS. Subject to the above, we expect to carry a positive, balanced and stable dividend distribution policy.
Our board has proposed a cash dividend of RMB0.38RMB0.29 per ordinary share (tax inclusive) for the year ended December 31, 2014,2016, which is equivalent to RMB15.2RMB11.6 per ADS. The total dividend to be paid upon approval amounts to approximately RMB5,480RMB4,408.11 million.
121
B.
B.            Significant changes
Except as disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of our audited consolidated financial statements included in this annual report.
ITEM 9    The Offer and Listing
ITEM 9The Offer and Listing
A.A.            Offer and listing details and markets
The Company’sCompany's ADSs have been listed on the New York Stock Exchange since October 6, 1994. The table below sets forth, for the periods indicated, the high and low closing prices of the ADSs on the New York Stock Exchange.Exchange
    Closing Price per ADS
    High Low
    (US$) (US$)
2012   37.15 21.02
2013   49.37 33.83
2014   56.44 31.51
2015   61.13 32.76
2016   37.79 22.86
       
2015 First Quarter 59.94 44.20
  Second Quarter 61.13 48.79
  Third Quarter 52.48 41.50
  Fourth Quarter 49.77 32.76
       
2016 First Quarter 36.81 29.44
  Second Quarter 37.79 24.61
  Third Quarter 26.36 22.86
  Fourth Quarter 26.04 23.82
       
2017 First Quarter 29.62 25.31
       
2016 October 25.90 24.11
  November 25.05 23.82
  December 26.04 24.62
       
2017 January 26.54 25.55
  February 28.35 25.31
  March 29.62 26.43

    Closing Price per ADS 
    
High
  
Low
 
    (US$)  (US$) 
2010    25.68   20.77 
2011    23.87   15.67 
2012    37.15   21.02 
2013    49.37   33.83 
2014    56.44   31.51 
           
2013 First Quarter  43.95   35.35 
  Second Quarter  49.37   33.83 
  Third Quarter  43.43   37.22 
  Fourth Quarter  44.01   35.58 
           
2014 First Quarter  39.06   31.51 
  Second Quarter  45.24   39.17 
  Third Quarter  49.21   43.66 
  Fourth Quarter  56.44   42.65 
           
2015 First Quarter  59.94   44.2 
           
2014 October  49.55   42.65 
  November  49.48   44.56 
  December  56.44   46.72 
           
2015 January  59.94   52.79 
  February  55.83   46.81 
  March  50.43   44.2 
__________________________________________
Source: Reuters
Each ADS represents 40 H shares. As of March 31, 2015,2017, there were 122114 registered holders of American Depositary Receipts evidencing ADS.

83
On January 21, 1998, we listed our H shares on the Hong Kong Stock Exchange. On February 26, 1998, we placed 250 million H Shares at the price of HK$4.40 per H share or US$22.73 per ADS. In May 2004, we affected a two-for-one stock split by way of a stock dividend for all our outstanding shares including H shares. The table below sets forth, for the periods indicated, the high and low closing prices of H shares on the Hong Kong Stock Exchange.
    Closing Price per H Share
    High Low
    (HK$) (HK$)
2012   7.19 4.13
2013   9.64 6.21
2014   10.92 6.21
2015   11.76 6.40
2016   7.27 4.46
       
2015 First Quarter 11.30 8.54
  Second Quarter 11.76 9.37

    
Closing Price per H Share
 
    
High
  
Low
 
    (HK$)  (HK$) 
2010    5.04   4.10 
2011    4.65   3.02 
2012    7.19   4.13 
2013    9.64   6.21 
2014    10.92   6.21 
           
2013 First Quarter  8.54   6.83 
  Second Quarter  9.64   6.78 
  Third Quarter  8.5   7.13 
  Fourth Quarter  8.74   6.87 
           
2014 First Quarter  7.61   6.21 
  Second Quarter  8.75   7.57 
  Third Quarter  9.52   8.48 
  Fourth Quarter  10.92   8.3 
           
2015 First Quarter   11.3    8.54 
           
2014 October  9.52   8.3 
  November  9.52   8.56 
  December  10.92   8.98 
           
2015 January  11.3   10.28 
  February  10.82   9.09 
  March  9.75   8.54 
122

    Closing Price per H Share
    High Low
    (HK$) (HK$)
  Third Quarter 9.89 9.22
  Fourth Quarter 9.59 6.40
       
2016 First Quarter 7.12 5.72
  Second Quarter 7.27 4.74
  Third Quarter 5.17 4.46
  Fourth Quarter  5.14  4.61
       
2017 First Quarter 5.77 4.93
       
2016 October 4.97 4.72
  November 4.86 4.61
  December 5.14 4.80
       
2017 January 5.16 4.98
  February 5.49 4.93
  March 5.77 5.16

As of March 31, 2015,2017, there were 401492 registered holders of H Shares.
ITEM 10    Additional Information
ITEM 10Additional Information
A.A.            Share capital
Not applicable.
B.B.            Memorandum and articles of association
The following is a brief summary of certain provisions of our Articles of Association, as amended, the Company Law and certain other applicable laws and regulations of the PRC. Such summary does not purport to be complete. For further information, you and your advisors should refer to the text of our Articles of Association, as amended, and to the texts of the applicable laws and regulations.
Objects and Purposes
We are a joint stock limited company established in accordance with the Standard Opinion for Joint Stock Limited Companies (the “Standard Opinion”"Standard Opinion") and certain other relevant laws and regulations of the PRC. We are registered with the PRC State Administration for Industry and Commerce with business license number Qi Gu Guo Zi No. 000496. Article 10 of our Articles of Association provides that our scope of businesses includes, among other things, investment, construction, operation and management of power plants; development, investment and operation of other export-oriented enterprises related to power plants; and production and supplysale of thermal heat.
heat and electricity.
Directors
Our directors shall be elected at our shareholders’shareholders' general meeting. Because the shares do not have cumulative voting rights, a holder of a majority of the shares is able to elect all of the directors. Our directors shall be elected for a term of three years and may serve consecutive terms upon re-election, except that independent directors may only serve a maximum of two consecutive terms of six years. Our directors are not required to hold any shares in us, and there is no age limit requirement for the retirement or non-retirement of our directors.

84
Where a director is materially interested, directly or indirectly, in a contract, transaction or arrangement (including any proposed contract, transaction or arrangement) with us, he or she shall declare the nature and extent of his or her interests to the board of directors at the earliest opportunity, whether or not such contract, transaction or arrangement is otherwise subject to the approval of the board. A director shall not vote, and shall not be counted in the quorum of the meeting, on any resolution concerning any contract, transaction or arrangement where the director owns material rights or interests therein. A director is deemed to be interested in a contract, transaction or arrangement in which his associate (as defined by Article 133 of the Articles of Association) is interested.
123
Unless the interested director discloses his interests to the board and the contract, transaction or arrangement in which the director is materially interested is approved by the board at a meeting in which the director neither votes nor is counted in the quorum, such contract, transaction or arrangement may be revoked by us except with respect to a bona fide party thereto who does not have notice of the director’sdirector's interests.
We are prohibited from making loans or providing guarantees to our directors and their associates except where such loan or guarantee is made or provided under a service contract as approved by our shareholders at the shareholders’shareholders' general meeting and to meet expenditure requirement incurred or to be incurred by the director for the purposes of the Company or for the purpose of enabling the director to perform his or her duties properly.
Matters relating to the remuneration of our directors shall be determined by the shareholders’shareholders' general meeting.
Dividends
Distribution of dividends may be proposed by our board of directors for approval by an ordinary resolution of our shareholders at the shareholders’shareholders' general meeting. The Articles of Association allows for cash dividends, stock dividends and combination of cash and stock dividends.
Dividends may only be distributed after allowance has been made for:

·recovery of losses, if any;
·allocations to the statutory surplus reserve fund; and
·allocations to a discretionary surplus reserve fund.
The allocation to the statutory surplus reserve fund is 10% of our net income determined in accordance with the PRC accounting rules. Where the accumulated statutory surplus reserve fund has reached 50% or more of our registered capital, no allocation is needed.
The Articles of Association require that cash dividends and other distribution with respect of H Shares be declared in Renminbi and paid by the Company in U.S. dollars or Hong Kong dollar in terms of the H Shares listed on the Hong Kong Stock Exchange. The Articles of Association further stipulate that for dividends and other distributions paid in currencies other than Renminbi, we shall use an exchange rate equal to the median closing exchange rate of Renminbi for such currencies announced by the PBOC for two working days in the week preceding the date on which such dividends or other distributions are declared.
We will appoint receiving agents to receive, on behalf of the holders of H Shares, any dividend distributions and all other money owing by us in respect of such shares (Receiving Agents). The Receiving Agents will comply with the laws and regulations of the applicable stock exchanges on which our shares are listed. Any Receiving Agent appointed on behalf of the holders of H Shares listed on the Hong Kong Stock Exchange will be a company registered as a trust corporation under the Trustee Ordinance of Hong Kong.
Dividends payments may be subject to PRC withholding tax.
Voting Rights and Shareholders’Shareholders' Meetings
Our board of directors shall convene a shareholders’shareholders' annual general meeting once every year and within six months from the end of the preceding financial year. Our board shall convene an extraordinary general meeting within two months after the occurrence of any one of the following events:
·where the number of directors is less than the number required by the PRC Company Law or two-thirds of the number specified in our Articles of Association;
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·where our unrecovered losses reach one-third of the total amount of our share capital;
·where shareholder(s) holding 10% or more of our issued shares so request(s);

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·whenever our board deems necessary or our supervisory committee so requests; or
·other circumstances as provided in the Articles of Association.
 
Resolutions proposed by shareholder(s) holding 3% or more of the total number of voting shares shall be included in the agenda for the relevant annual general meeting if (i) they are submitted to the board of directors no later than 10 days before the annual general meeting is to be held and (ii) they are matters which fall within the scope of the functions and powers of shareholders’shareholders' general meeting and have clear subject and concrete terms to be voted upon. The board of directors shall publish a supplementary notice of annual general meeting specifying the resolutions proposed to other shareholders. Upon publication of the supplementary notice, no alteration to the proposed resolutions or addition of other proposed resolutions will be accepted.
All shareholders’shareholders' meetings must be convened by our board by written notice given to shareholders not less than 45 days before the meeting. Based on the written replies received by us 20 days before a shareholders’shareholders' meeting, we shall calculate the number of voting shares represented by shareholders who have indicated that they intend to attend the meeting. When the number of voting shares represented by those shareholders amount to more than one-half of our total voting shares, we shall convene the shareholders’shareholders' general meeting. Otherwise, we shall, within five days before holding the shareholders’shareholders' general meeting, inform the shareholders again of the motions to be considered and the date and venue of the meeting by way of a public announcement. After the announcement is made, the shareholders’shareholders' meeting may be convened. The accidental omission by us to give notice of a meeting to, or the non-receipt of notice of a meeting by, a shareholder will not invalidate the proceedings at that shareholders’shareholders' meeting.
Shareholders at meetings have the power, among other things, to examine and approve our profit distribution plans and plans to recover losses, the annual budget, an increase or reduction of registered share capital, the reports of our board of directors and supervisory committee, the issuance of debentures, and the plans for merger, division, dissolution or liquidation; to elect or remove our directors and supervisors who are not elected as employees’employees' representatives; and to review and amend our Articles of Association. In addition, the rights of a class of shareholders may not be modified or abrogated, unless approved by a special resolution of shareholders at a general shareholders’shareholders' meeting and by a special resolution of shareholders of that class of shares at a separate meeting. Our Articles of Association enumerate, without limitation, certain amendments which would be deemed to be a modification or abrogation of the rights of a class of shareholders, including increasing or decreasing the number of shares of such class or the number of shares of a class with voting or distribution rights or privileges equal or superior to the shares of such class, removing or reducing rights to receive dividends in a particular currency, and creating shares with voting or distribution rights or privileges equal or superior to the shares of such class.
Each share is entitled to one vote on all such matters submitted to a vote of our shareholders at the shareholders’shareholders' general meetings, except for meetings of a special class of shareholders where only holders of shares of the affected class are entitled to vote on the basis of one vote per share of the affected class.
Shareholders are entitled to attend and vote at meetings either in person or by proxy. Proxies must be in writing and deposited at our legal address, or such other place as is specified in the meeting notice, not less than 24 hours before the start of the meeting at which the proxy proposes to vote or the time appointed for the passing of the relevant resolution(s). When the instrument appointing a proxy is executed by the shareholder’sshareholder's attorney-in-fact, such proxy when deposited must be accompanied by a notary-certified copy of the relevant power of attorney or other authority under which the proxy was executed.
Except for those actions discussed below which require supermajority votes (“("special resolutions”resolutions"), resolutions of the shareholders are passed by a simple majority of the voting shares held by shareholders who are present in person or by proxy. Special resolutions must be passed by more than two-thirds of the voting shares held by shareholders who are present in person or by proxy.
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The following decisions must be adopted by special resolution:
·an increase or reduction of our registered share capital or the issuance of shares, including stock distributions, of any class, warrants and other similar securities;
·issuance of debentures;
·our division, merger, dissolution, liquidation and change of the legal form;
·amendments to our Articles of Association;
·acquisition or disposal of material assets or providing a guarantee in the amount exceeding 30% of our most recent audited total assets within one year;
·adjustments to our profit distribution policy; and
·any other matters our shareholders have resolved by way of an ordinary resolution at a general meeting to be of a nature which may have a material impact on us and should be adopted by special resolution.

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In addition, amendments to the Articles of Association require the approval and consent of the relevant PRC authorities.
All other actions taken by the shareholders, including the appointment and removal of our directors and supervisors and the declaration of cash dividend payments, will be decided by an ordinary resolution of the shareholders.
Any shareholder resolution which is in violation of any laws or regulations of the PRC will be null and void.
Liquidation Rights
In the event of our liquidation, the ordinary shares held by overseas shareholders will rank pari passu with the ordinary shares held by the domestic shareholders, and any of our assets remaining after payments (in order of priority) of (a) the costs of liquidation (b) wages and social insurance fees payable to or for our employees for the past three years prior to the date of liquidation; (c) overdue taxes and tax surcharges, funds and other amounts payable pursuant to the applicable administrative regulations; and (d) bank loans, corporate bonds and other debts, will be divided among our shareholders in accordance with the class of shares and their proportional shareholdings.
Further Capital Call
Shareholders are not liable to make any further contribution to the share capital other than according to the terms, which were agreed to by the subscriber of the relevant shares at the time of subscription.
Increases in Share Capital and Preemptive Rights
The Articles of Association require the approval by a special resolution of the shareholders prior to authorizing, allotting, issuing or granting shares, securities convertible into shares or options, warrants or similar rights to subscribe for any shares or such convertible securities. New issues of shares must also be approved by the relevant PRC authorities.
Shareholders do not have preemptive rights with respect to new issues of shares of the Company.
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Reduction of Share Capital and Purchase by Us of Our Shares and General Mandate to Repurchase Shares
We may reduce our registered share capital only upon obtaining the approval of the shareholders by a special resolution and, in certain circumstances, of relevant PRC authorities. The number of H Shares which may be purchased is subject to the Hong Kong Takeovers and Share Repurchase Codes.
Restrictions on Large or Controlling Shareholders
Our Articles of Association provide that, in addition to any obligation imposed by laws and administration regulations or required by the listing rules of the stock exchanges on which our shares are listed, a controlling shareholder shall not exercise his voting rights in a manner prejudicial to the interests of the shareholders generally or of some part of the shareholders:
(1)·to relieve a director or supervisor from his or her duty to act honestly in our best interests;
(2)·to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of our assets in any way, including, without limitation, opportunities which may benefit us; or
(3)·to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of the individual rights of other shareholders, including, without limitation, rights to distributions and voting rights (save according to a restructuring of our Companycompany which has been submitted for approval by the shareholders in a general meeting in accordance with our Articlesarticles of Association)association).
A controlling shareholder, however, will not be precluded by our Articles of Association or any laws and administrative regulations or the listing rules of the stock exchanges on which our shares are listed from voting on these matters.
A controlling shareholder is defined by our Articles of Association as a shareholder whose capital contribution represents 50% or more of the total capital of our Company, or a shareholder whose shares represent 50% or more of the total issued share capital of our Company, or a shareholder whose capital contribution or shares are less than 50% but obtains significant voting rights to influence the result of the shareholder’sshareholder's general meeting or the resolutions passed thereby.
Disclosure
The Listing Agreement imposes a requirement on us to keep the Hong Kong Stock Exchange, our shareholders and other holders of our listed securities informed as soon as reasonably practicable of any information relating to us and our subsidiaries, including information on any major new developments which are not public knowledge, which:
·is necessary to enable them and the public to appraise the position of us and our subsidiaries;

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·is necessary to avoid the establishment of a false market in its securities; and
·might be reasonably expected to materially affect market activity in and the price of its securities.
There are also requirements under the Listing Rules for us to obtain prior shareholders’shareholders' approval and/or to disclose to shareholders details of certain acquisitions or disposals of assets and other transactions (including transactions with controlling shareholders).
Sources of Shareholders’Shareholders' Rights
The PRC’sPRC's legal system is based on written statutes and is a system in which decided legal cases have little precedent value. Prior to the effectiveness of the Company Law, the PRC did not have a comprehensive body of laws governing joint stock limited companies. The rights and obligations of our shareholders are principally
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contained in our constitutive documents and the Standard Opinion, under which we were established. In December 1993, the Standing Committee of the 8th National People’sPeople's Congress adopted the PRC Company Law, which superseded the Standard Opinion. In accordance with Article 229 of the Company Law, we must comply with the relevant requirements of the Company Law within an unspecified time period. As a result, we amended our Articles of Association pursuant to the Company Law on June 6, 1995. On October 27, 2005, the Company Law was amended by the Standing Committee of the 10th National People’sPeople's Congress, and came into force on January 1, 2006.
Currently, the primary sources of shareholder’sshareholder's rights are our Articles of Association, as amended, the PRC Company Law and the Listing Rules of the Hong Kong Stock Exchange, which, among other things, impose certain standards of conduct, fairness and disclosure on us, our directors and our controlling shareholders. To facilitate the offering and listing of shares of PRC companies overseas, and to regulate the behavior of companies whose shares are listed overseas, the State Council Securities Committee and the State Commission for Restructuring the Economic System issued on August 27, 1994 the Mandatory Provisions for Articles of Association of Company Listing Overseas (the “Mandatory Provisions”"Mandatory Provisions"). These Mandatory Provisions become entrenched in that, once they are incorporated into the Articles of Association of a PRC Company, any amendment to those provisions will only become effective after approval by the State-owned Assets Supervision and Administration Commission of the State Council. The Listing Rules require a number of additional provisions to the Mandatory Provisions to be included in the Articles of Association of PRC companies listing H Shares on the Hong Kong Stock Exchange (the “Additional Provisions”"Additional Provisions"). The Mandatory Provisions and the Additional Provisions have been incorporated into our Articles of Association.
In addition, upon the listing of and for so long as the H Shares are listed on the Hong Kong Stock Exchange, we are subject to the relevant ordinances, rules and regulations applicable to companies listed on the Hong Kong Stock Exchange, including the Listing Rules of the Hong Kong Stock Exchange, the Securities (Disclosure of Interests) Ordinance (the “SDI Ordinance”"SDI Ordinance"), the Securities (Insider Dealing) Ordinance and the Hong Kong Codes on Takeovers and Mergers and Share Repurchases (the “Hong"Hong Kong Takeovers and Repurchase Codes”Codes").
Enforceability of Shareholders’Shareholders' Rights
There has not been any public disclosure in relation to the enforcement by holders of H Shares of their rights under constitutive documents of joint stock limited companies or the Company Law or in the application or interpretation of the PRC or Hong Kong regulatory provisions applicable to the PRC joint stock limited companies.
The Company Law, as amended in October 2005 and effective in January 2006, has granted shareholders with the rights to bring derivative suits. Within the Company Law, shareholders holding more than 1 percent of the shares of the company for more than 180 consecutive days are entitled to request the supervisory committee (in terms of directors and senior management) or the board of directors (in terms of supervisors) to bring legal proceedings, or bring legal proceedings in their own name on behalf of the company where it is in emergency and the company will be subject to irreparable loss if not to do so, against directors, supervisors or senior management who fail to comply with the laws and regulations or the company’scompany's Articles of Association in the course of performing their duties and cause loss to the company;
Our Articles of Association provide that all differences or claims:
·between a holder of H Shares and us;
·between a holder of H Shares and any of our directors, supervisors, general managers or other senior officers; or
·between a holder of H Shares and a holder of domestic ordinary shares, arising from any provision of our Articles of Association, any right or obligation conferred or imposed by the Company Law or any other relevant law or administrative regulation which concerns our affairs
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must, with certain exceptions, be referred to arbitration at either the China International Economic and Trade Arbitration Commission in the PRC or the Hong Kong International Arbitration Center. Our Articles of Association provide that such arbitration will be final and conclusive. In June 1999, an arrangement was made between the People’sPeople's Courts of the PRC and the courts of Hong Kong to mutually enforce arbitration rewards rendered in the PRC and Hong Kong according to their respective laws. This new arrangement was approved by the Supreme Court of the PRC and the Hong Kong Legislative Council and became effective on February 1, 2000.

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The holders of H Shares will not be able to bring actions on the basis of violations of the Listing Rules and must rely on the Hong Kong Stock Exchange to enforce its rules. The SDI Ordinance establishes certain obligations in relation to disclosure of shareholder’sshareholder's interests in Hong Kong listed companies, the violation of which is subject to prosecution by the Securities and Futures Commission of Hong Kong. The Hong Kong Takeovers and Repurchase Codes do not have the force of law and are the only standards of commercial conduct considered acceptable for takeover and merger transactions and share repurchases in Hong Kong as established by the Securities and Futures Commission and the securities and futures industry in Hong Kong.
We have appointed CT Corporation System, New York, as our agent to receive service of process with respect to any action brought against us in certain courts in New York under the United States federal and New York State’sState's securities laws. However, as the PRC does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts within the United States, the United Kingdom, Japan or most other of the Organization for Economic Cooperation and Development countries, administrative actions brought by regulatory authorities, such as the Commission, and other actions which result in foreign court judgments, could (assuming such actions are not required by PRC law and the Articles of Association to be arbitrated) only be enforced in the PRC on a reciprocal basis or according to relevant international treaties to which China is a party if such judgments or rulings do not violate the basic principles of the law of the PRC or the sovereignty, security and public interest of the society of the PRC, as determined by a People’sPeople's Court of the PRC which has the jurisdiction for recognition and enforcement of judgments. We have been advised by our PRC counsel, Haiwen & Partners, that there is uncertainty as to the enforceability in the PRC of actions to enforce judgments of United States courts arising out of or based on the ownership of H Shares or ADSs, including judgments arising out of or based on the civil liability provisions of United States federal or state securities laws.
Restrictions on Transferability and the Share Register
As provided in the Articles of Associations we may refuse to register a transfer of H Shares listed on Hong Kong Stock Exchange unless:
·a fee (for each instrument of transfer) of HK dollar 2.50, or any higher fee as agreed by the Hong Kong Stock Exchange, has been paid to us;
·the instrument of transfer only involves H Shares;
·the stamp duty chargeable on the instrument of transfer has been paid;
·the relevant share certificate and upon the reasonable request of the board of directors, any evidence in relation to the right of the transferor to transfer the shares have been submitted;
·if it is intended to transfer the shares to joint owners, then the maximum number of joint owners must not exceed four;
·we do not have any lien on the relevant shares.
We are required to maintain an original share register for holders of H Shares in Hong Kong and a copy of the register at our legal address. Shareholders have the right to inspect and, for a reasonable charge, to copy the share register. No transfers of ordinary shares shall be recorded in our share register within 20 days prior to the date
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of a shareholders’shareholders' general meeting or within 5 days prior to the record date established for the purpose of distributing a dividend.
We have appointed Hong Kong Registrars Limited to act as the registrar of our H Shares. This registrar maintains our register of holders of H Shares in Hong Kong and enters transfers of shares in such register upon the presentation of the documents described above.
C.C.            Material contracts
See “Item"Item 7. Major Shareholders and Related Party Transactions — B. Related Party Transactions”Transactions" for certain arrangements we have entered into with HIPDC and Huaneng Group.
D.D.            Exchange controls
The existing foreign exchange regulations have significantly reduced government foreign exchange controls for transactions under the current account, including trade and service related foreign exchange transactions and payment of dividends. We may undertake current account foreign exchange transactions without prior approval from the State Administration of Foreign Exchange or its local branch offices. The PRC Government has stated publicly that it intends to make the Renminbi freely convertible in the future. However, we cannot predict whether the PRC Government will continue its existing foreign exchange policy and when the PRC Government will allow free conversion of Renminbi to foreign currency.

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Foreign exchange transactions under the capital account, under most circumstances, including principal payments in respect of foreign currency-denominated obligations, continue to be subject to significant foreign exchange controls and require the approval of the State Administration of Foreign Exchange or its local branch offices. These limitations could affect our ability to obtain foreign exchange through debt or equity financing, or to obtain foreign exchange for capital expenditures.
The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the PBOC. On July 21, 2005, the PRC government introduced a floating exchange rate system to allow the value of Renminbi to fluctuate within a regulated band based on market supply and demand and by reference to a basket of foreign currencies. Renminbi appreciated by more than 20% against the U.S. dollar between July 2005 and July 2008. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. On June 19, 2010, the PBOC decided to further promote the reform of the Renminbi exchange rate formation mechanism, and improve the flexibility of the Renminbi exchange rate. Since June 2010, Renminbi has regained steady appreciation against the U.S. dollar, which was reversed by slight depreciation of the Renminbi against the U.S. dollar at the turn to and early 2014. On March 15, 2014, the PBOC announced to further widen the Remninbi’sRemninbi's daily trading band against the U.S. dollar from 1% to 2% on either side of the daily reference rate, allowing for greater fluctuations of the exchange rate. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future. There remains significant international pressure on the PRC Government to further liberalize its currency policy, which could result in further fluctuations in the value of the Renminbi against the U.S. dollar. However, there is no assurance that there will not be a devaluation of Renminbi in the future. If there is such a devaluation, our debt servicing cost will increase and the return to our overseas investors may decrease.
The following table sets forth information concerning exchange rates between the Renminbi and the U.S. dollar for the periods indicated:

  Noon Buying Rate 
Period End  
Average(1)
  High  Low 
  (RMB per US$1.00) 
2012  6.2301   6.2990   6.2221   6.3879 
2013  6.0537   6.1412   6.0537   6.2438 
2014  6.2046   6.1704   6.0402   6.2591 
2015  6.4778   6.2869   6.4896   6.1870 
2016  6.9430   6.6549   6.4480   6.9580 
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Noon Buying Rate
 
Period 
End
  
Average(1)
  
High
  
Low
 
       (RMB per US$1.00)    
2010    6.6000   6.7603   6.6000   6.8330 
2011    6.2939   6.4475   6.2939   6.6364 
2012    6.2301   6.2990   6.2221   6.3879 
2013    6.0537   6.1412   6.0537   6.2438 
2014    6.2046   6.1704   6.0402   6.2591 
  October  6.1124   6.1251   6.1107   6.1385 
  November  6.1429   6.1249   6.1117   6.1429 
  December  6.2046   6.1886   6.1490   6.2256 
2015 January  6.2495   6.2181   6.1870   6.2535 
  February  6.2695   6.2518   6.2399   6.2695 
  March 6.1990  6.2386  6.1955  6.2741 
  April (through April 10, 2015) 6.2082  6.1989  6.1930  6.2082 



  Noon Buying Rate 
Period End  
Average(1)
  High  Low 
    (RMB per US$1.00) 
 October   6.7735   6.7303   6.6685   6.7819 
 November   6.8837   6.8402   6.7534   6.9195 
 December   6.9430   6.9198   6.8771   6.9580 
2017January  6.8768   6.8907   6.8360   6.9575 
 February   6.8665   6.8694   6.8517   6.8821 
 March  6.8832  6.8940  6.8687  6.9132 
 April (through April 7, 2017)  6.8978  6.8903  6.8832  6.8978 

Source: Federal Reserve Statistical Release, Board of Governors of the Federal Reserve System.
Note:
(1)Annual averages are calculated by using the average of the exchange rates on the last day of each month during the relevant year. Monthly averages are calculated by using the average of the daily rates during the relevant month.
E.E.             Taxation
The following is a summary of (i) certain tax consequences from acquiring, owning and disposing of the H Shares and ADSs based on tax laws of the PRC, the United States and the Income Tax Treaty between the PRC and the United States (the “Tax Treaty”"Tax Treaty") as in effect on the date of this annual report, and is subject to changes in PRC or United States law, including changes that could have retroactive effect, and (ii) the principal PRC taxes to which we are subject. The following summary does not take into account or discuss the tax laws of any countries or regions other than the PRC and the United States, nor does it take into account the individual circumstances of an investor. This summary does not purport to be a complete technical analysis or examination of all potential tax effects relevant to an investment in the H Shares or ADSs and current and prospective investors in all jurisdictions of the H Shares or ADSs are advised to consult their tax advisors as to PRC, United States or other tax consequences of the purchase, ownership and disposition of the H Shares or ADSs. This summary also does not purport to be a complete technical analysis or examination of all potential PRC taxes that may be levied upon us.
PRC tax considerations
Tax on dividends
Individual investors

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According to the current PRC tax regulations, dividends paid by PRC companies to individual investors are ordinarily subject to a PRC withholding tax levied at a flat rate of 20%. For a foreign individual who has no domicile or does not stay in the territory of China or who has no domicile but has stayed in the territory of China for less than one year, the receipt of dividends from a company in China is normally subject to a withholding tax of 20% unless reduced or exempted by applicable laws and tax treaties.
Enterprises
In accordance with the New Enterprise Income Tax Law that became effective on January 1, 2008, dividends derived from the revenues accumulated from January 1, 2008 and as amended on February 24, 2017 and paid by PRC companies to non-resident enterprises are generally subject to a PRC withholding tax levied at a rate of 10% unless exempted or reduced pursuant to an applicable double-taxation treaty or other exemptions. Dividends paid by PRC companies to resident enterprises, including enterprises established under the laws of non-PRC jurisdictions but whose “de"de facto management body”body" is located in the PRC, are not subject to any PRC withholding tax, unless the dividends are derived from the publicly traded shares which have not been held continuously by the resident enterprises for twelve months. According to the Notice on the Issues Concerning Withholding the Enterprise Income Tax on the Dividends Paid by Chinese Resident Enterprise to H Share Holders Which Are Overseas Non-resident Enterprises issued by the State Administration of Taxation on November 6, 2008, Chinese resident enterprises are required to withhold PRC enterprise income tax at the rate of 10% on dividends paid for 2008 and later years payable to their respective H Shares holders who are non-resident enterprises.
Capital gains tax on sales of shares
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In accordance with the New Enterprise Income Tax Law, capital gains realized by foreign enterprises which are non-resident enterprises in China upon the sale of overseas shares are generally subject to a PRC withholding tax levied at a rate of 10%, unless exempted or reduced pursuant to an applicable double-taxation treaty or other exemptions. The capital gains realized by resident enterprises, including enterprises established under the laws of non-PRC jurisdictions but whose “de"de facto management body”body" is located in the PRC, upon the sales of overseas shares are subject to the PRC enterprise income tax.
Tax treaties
Non-PRC Investors residing in countries which have entered into double-taxation treaties with the PRC may be entitled to a reduction of the withholding tax imposed on the payment of dividends to such Foreign Holders of us. The PRC currently has double-taxation treaties with a number of countries, including Australia, Canada, France, Germany, Japan, Malaysia, the Netherlands, Singapore, the United Kingdom and the United States.
Stamp tax
Under the Provisional Regulations of The People’sPeople's Republic of China Concerning Stamp Tax, which became effective in October 1988, PRC stamp tax should not be imposed on the transfer of H Shares or ADSs of PRC publicly traded companies.
Taxation of the Company
Income tax
Prior to January 1, 2008, according to the relevant income tax law, foreign invested enterprises were, in general, subject to a statutory income tax of 33% (30% enterprise income tax and 3% local income tax). If these enterprises are located in certain specified locations or cities, or are specifically approved by the State Administration of Taxation, a lower tax rate would be applied. Effective from January 1, 1999, in accordance with the practice notes on the PRC income tax laws applicable to foreign invested enterprises investing in energy and transportation infrastructure businesses, a reduced enterprise income tax rate of 15% (after the approval of State Administration of Taxation) was applicable across the country. We applied this rule to all of our wholly owned operating power plants after obtaining the approval of the State Administration of Taxation. In addition, certain power plants were exempted from the enterprise income tax for two years starting from the first profit-making year, after offsetting all tax losses carried forward from the previous years (at most of five years), followed by a 50% reduction of the applicable tax rate for the next three years. The statutory income tax was assessed individually based on each of their results of operations.
On March 16, 2007, the Enterprise Income Tax Law of PRC, or the New Enterprise Income Tax Law, was enacted, and became effective on January 1, 2008. The New Enterprise Income Tax Law imposes a uniform income tax rate of 25% for domestic enterprises and foreign invested enterprises. Therefore, our power plants that were subject to a 33% income tax rate prior to January 1, 2008 are subject to a lower tax rate of 25% starting on January 1, 2008. With regard to our power plants entitled to a reduced enterprise income tax rate of 15% prior to January 1, 2008, their effective tax rate is being gradually increased to 25% within a five-year transition period commencing on January 1, 2008. Accordingly, the effective tax rate of our wholly owned power plants will increase over time. In addition, although our power plants entitled to tax exemption and reduction under the income tax laws and regulations that are effective prior to the New Enterprise Income Tax Law will continue to enjoy such preferential treatments until the expiration of the same, newly established power plants will not be able to benefit from such tax incentives, unless they can satisfy specific qualifications, if any, provided by then effective laws and regulations on preferential tax treatment.
Pursuant to Measures for the Collection and Administration of Consolidated Payment of Enterprises Income Tax on Trans-Regional Operation, effective on January 1, 2013, the Company and its branches calculate and pay income tax on a combined basis according to relevant tax laws and regulations. The income tax of subsidiaries remains to be calculated individually based on their individual operating results.

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Value-added tax
Since January 1, 1994, the government has implemented a turnover tax system applicable to FIEs. Under the turnover tax provisions, we have to collect from our electricity customers and pay to the PRC tax authorities a value-added tax (“VAT”("VAT") on our sales. The tax rate on sales of electricity by us is 17% of total sales. The amount of VAT payable by us is the VAT on sales reduced by the VAT paid by us on our purchases of coal, fuel and other inputs.
Effective from January 1, 2009, VAT payers are allowed to credit against output VAT in respect of input VAT on fixed assets purchased or self-manufactured based on the relevant VAT credit receipts in accordance with the revised VAT regulations and its implementation rules.
In addition, effective from August 1, 2012, according to the relevant regulations of Ministry of Finance of PRC and State Administration of Taxation, nine pilot regions including Shanghai, Beijing, Tianjin, Jiangsu Province, Anhui Province, Zhejiang Province, Fujian Province, Hubei Province and Guangdong Province have been under the pilot program for the transformation from Business Tax to VAT since January 1, 2012 and all other regions have been since August 1, 2013 for specified industry. The applicable tax rate of VAT for the Company and its subsidiaries in respect of the lease of tangible movable properties, transportation industry and other modern services industries are 17%, 11% and 6%, respectively.
On March 23, 2016, the Ministry of Finance of PRC and the State Administration of Taxation issued the Circular of Full Implementation of Business Tax to VAT Reform which confirms that business tax will be completely replaced by VAT from May 1, 2016. With effect from May 1, 2016, our income is only subject to VAT and not business tax. 
United States federal income tax considerations
The following discussion is a summary of United States federal income tax considerations relating to the ownership and disposition of our H shares or ADSs by a U.S. Holder (as defined below). This discussion is based upon existing United States federal income tax law, which is subject to differing interpretations or change, possibly with retroactive effect. This discussion does not address all aspects of United States federal income taxation which may be important to particular holders in light of their particular circumstances, such as holders subject to special tax rules including: banks or other financial institutions, insurance companies, broker-dealers, traders in securities that elect mark-to-market treatment, partnerships and their partners, regulated investment companies, real estate investment trusts, cooperatives, pension plans, tax-exempt organizations (including private foundations), holders who are not U.S. Holders, holders who own (directly, indirectly, or constructively) 10% or more of the voting power or value of our stock, holders that hold H shares or ADSs as part of a straddle, hedge, conversion, constructive sale, or other integrated transaction for United States federal income tax purposes, holders who acquired their ADSs or H shares pursuant to any employee share option or otherwise as compensation, or holders that have a functional currency other than the United States dollar, all of whom may be subject to tax rules that differ significantly from those summarized below. In addition, this discussion does not address any state, local, non-United States, non-income tax (such as the United States federal gift and estate tax), or alternative minimum tax considerations or the Medicare tax. This discussion only addresses holders that hold their H shares or ADSs as “capital assets”"capital assets" (generally, property held for investment) under the United States Internal Revenue Code of 1986, as amended (the “Code”"Code"). U.S. Holders are urged to consult their tax advisors regarding the United States federal, state, local, and non-United States income and other tax considerations relating to the ownership and disposition of our H shares or ADSs.
For purposes of this summary, a U.S. Holder is a beneficial owner of H shares or ADSs that is, for United States federal income tax purposes:
·an individual who is a citizen or resident of the United States;
·a corporation (or other entity treated as a corporation for United States federal income tax purposes) created in or organized under the laws of the United States or any State thereof or the District of Columbia;
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·an estate the income of which is includible in gross income for United States federal income tax purposes regardless of its source; or
·a trust (a) the administration of which is subject to the primary supervision of a United States court and which has one or more United States persons who have the authority to control all substantial decisions of the trust or (b) a trust that has otherwise elected to be treated as a United States person under the Code.
If a partnership (including any entity treated as a partnership for United States federal income tax purposes) is a beneficial owner of H shares or ADSs, the tax treatment of a partner in such partnership will depend upon the status of the partner and the activities of the partnership. Partnerships and partners of a partnership holding our H shares or ADSs are urged to consult their tax advisors regarding the United States federal income tax considerations relating to the ownership and disposition of our H shares or ADSs.
For United States federal income tax purposes, it is generally expected that a U.S. Holder of ADSs will be treated as the beneficial owner of the underlying shares represented by the ADSs. The remainder of this discussion assumes that a holder of ADSs will be treated in this manner. Accordingly, deposits or withdrawals of H shares for ADSs will generally not be subject to United States federal income tax.

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Passive Foreign Investment Company Considerations
A non-United States corporation, such as our Company, will be a “passive"passive foreign investment Company”Company" (a “PFIC”"PFIC"), for United States federal income tax purposes for any taxable year, if either (a) 75% or more of its gross income for such year consists of certain types of “passive”"passive" income or (b) 50% or more of its average quarterly assets as generally determined on the basis of fair market value during such year produce or are held for the production of passive income. For this purpose, cash and assets readily convertible into cash are categorized as passive assets and the Company’sCompany's unbooked intangibles are taken into account for determining the value of its assets. We will be treated as owning a proportionate share of the assets and earning a proportionate share of the income of any other corporation in which we own, directly or indirectly, more than 25% (by value) of the stock.
We do not believe that we were classified as a PFIC for the taxable year ending 2014.ended December 31, 2016. The determination of whether we will be or become a PFIC will depend, in part, upon the composition of our income and our assets (which are subject to change from year to year) and the market price of our ADSs (of which we cannot control). Although we do not expect that our business plans will change in a manner that will affect our PFIC status, no assurance can be given in this regard. Because there are uncertainties in the application of the relevant rules and PFIC status is a fact-intensive determination made on an annual basis, no assurance may be given with respect to our PFIC status for any taxable year.
The discussion below under “Dividends”"Dividends" and “Sale"Sale or Other Disposition”Disposition" of H shares or ADSs assumes that we will not be classified as a PFIC for United States federal income tax purposes. See the discussion below under the heading “Passive"Passive Foreign Investment Company Rules”Rules" for a brief summary of the PFIC rules.
Dividends
The gross amount of any cash distributions (including the amount of any tax withheld) paid on our H shares or ADSs out of our current or accumulated earnings and profits, as determined under United States federal income tax principles, will be subject to tax as dividend income on the day actually or constructively received by a U.S. Holder, in the case of H shares, or by the depositary bank, in the case of ADSs. Because we do not intend to determine our earnings and profits on the basis of United States federal income tax principles, any distribution paid will generally be reported as a “dividend”"dividend" for United States federal income tax purposes. A non-corporate recipient of dividend income will generally be subject to tax on dividend income from a “qualified"qualified foreign corporation”corporation" at a reduced capital gains rate rather than the marginal tax rates generally applicable to ordinary income provided that certain holding period requirements are met.
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A non-U.S. corporation (other than a corporation that is classified as a PFIC for the taxable year in which the dividend is paid or the preceding taxable year) generally will be considered to be a qualified foreign corporation (i) if it is eligible for the benefits of a comprehensive tax treaty with the United States which the Secretary of Treasury of the United States determines is satisfactory for purposes of this provision and which includes an exchange of information program or (ii) with respect to any dividend it pays on stock which is readily tradable on an established securities market in the United States. There is currently a tax treaty in effect between the United States and the People’sPeople's Republic of China (the “U.S.-PRC Treaty”"U.S.-PRC Treaty") which the Secretary of Treasury of the United States determined is satisfactory for these purposes and we believe that we are eligible for the benefits of such treaty. Additionally, our ADSs (but not our H shares) trade on the New York Stock Exchange, an established securities market in the United States and the ADSs are expected to be readily tradable for so long as they continue to be listed on the New York Stock Exchange. Thus, while we presently believe that we are a qualified foreign corporation for purposes of the reduced treaty rate, there can be no assurance that the dividends we pay on our H shares or ADSs will meet the conditions required for the reduced tax rate in the current taxable year or future taxable years. Dividends received on H shares or ADSs will not be eligible for the dividends received deduction allowed to corporations. U.S. Holders are urged to consult their tax advisors regarding the rate of tax that will apply to them with respect to dividends (if any) received from U.S.
Dividends paid in non-United States currency will be includible in income in a United States dollar amount based on the exchange rate prevailing at the time of receipt of such dividends by the depositary, in the case of ADSs, or by the U.S. Holder, in the case of H shares held directly by such U.S. Holder, regardless of whether the non-United States currency is actually converted into United States dollars at that time. Gain or loss, if any, recognized on a subsequent sale, conversion or other disposition of the non-United States currency will generally be United States source income or loss.
Dividends received on H shares or ADSs will generally be treated, for United States foreign tax credit purposes, as foreign source income and generally will constitute passive category income. A U.S. Holder may be eligible, subject to a number of complex limitations, to claim a foreign tax credit in respect of any non-United States withholding taxes imposed on dividends received on H shares or ADSs. U.S. Holders who do not elect to claim a foreign tax credit for foreign income tax withheld may instead claim a deduction, for United States federal income tax purposes, in respect of such withholdings, but only for a year in which the U.S. Holder elects to do so for all creditable foreign income taxes. U.S. Holders are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

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Sale or Other Disposition of H shares or ADSs
A U.S. Holder will generally recognize capital gain or loss upon the sale or other disposition of H shares or ADSs in an amount equal to the difference between the amount realized upon the disposition and the U.S. Holder’sHolder's adjusted tax basis in such H shares or ADSs. Any capital gain or loss will be long-term if the H shares or ADSs have been held for more than one year and will generally be United States source gain or loss for United States foreign tax credit purposes. If any PRC tax were to be imposed on any gain from the disposition of H shares or ADSs between U.S. Holder that is eligible for the benefits of the U.S.PRC Treaty may elect to treat the gain as non-United States source gain or loss. The deductibility of a capital loss may be subject to limitations. U.S. Holders are urged to consult their tax advisors regarding the tax credit purposes if a non-U.S. withholding tax is imposed on a disposition of our H shares or ADSs, including the availability of the foreign tax credit under their particular circumstances.
U.S. Holders that receive currency other than the United States dollar upon the sale or other disposition of H shares will realize an amount equal to the United States dollar value of the non-United States currency on the date of such sale or other disposition, or if the shares are traded on an established securities market, in the case of cash basis and electing accrual basis taxpayers, the settlement date. U.S. Holders will recognize currency gain or loss if the United States dollar value of the currency received on the settlement date differs from the amount realized. U.S. Holders will have a tax basis in the currency received equal to the United States dollar amount at the spot rate on the settlement date. Generally, any gain or loss realized by U.S. Holders on a subsequent conversion or disposition of such currency will be United States source ordinary income or loss.
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Passive Foreign Investment Company Rules
If we were to be classified as a PFIC in any taxable year, a special tax regime will apply to both (a) any “excess distribution”"excess distribution" by us to a U.S. Holder (generally, the U.S. Holder’sHolder's ratable portion of distributions in any year which are greater than 125% of the average annual distribution received by such U.S. Holder in the shorter of the three preceding years or the U.S. Holder’sHolder's holding period for our H shares or ADSs) and (b) any gain realized on the sale or other disposition of the H shares or ADSs. Under this regime, any excess distribution and realized gain will be treated as ordinary income and will be subject to tax as if (a) the excess distribution or gain had been realized ratably over the U.S. Holder’sHolder's holding period, (b) the amount deemed realized in each year had been subject to tax in each year of that holding period at the highest marginal rate for such year (other than income allocated to the current period or any taxable period before we became a PFIC, which would be subject to tax at the U.S. Holder’sHolder's regular ordinary income rate for the current year and would not be subject to the interest charge discussed below), and (c) the interest charge generally applicable to underpayments of tax had been imposed on the taxes deemed to have been payable in those years. In addition, dividends made to a U.S. Holder will not qualify for the lower rates of taxation applicable to long-term capital gains discussed above under “Dividends”"Dividends".
The above results may be eliminated if a “mark-to-market”"mark-to-market" election is available and a U.S. Holder validly makes such an election. If the election is made, such holder generally will be required to take into account the difference, if any, between the fair market value and its adjusted tax basis in H shares or ADSs at the end of each taxable year as ordinary income or ordinary loss (to the extent of any net mark-to-market gain previously included in income). In addition, any gain from a sale or other disposition of H shares or ADSs will be treated as ordinary income, and any loss will be treated as ordinary loss (to the extent of any net mark-to-market gain previously included in income).
We do not intend to provide information necessary for U.S. Holders to make qualified electing fund elections, which, if available, would result in tax treatment different from (and generally less adverse than) the general tax treatment for PFICs described above.
As discussed above under “Dividends,”"Dividends", dividends that we pay on the ADSs or our H shares will not be eligible for the reduced tax rate that applies to qualified dividend income if we are a PFIC for the taxable year in which the dividend is paid or the preceding taxable year. In addition, if a U.S. Holder owns the ADSs or our H shares during any taxable year that we are a PFIC, such holder would generally be required to file an annual IRS Form 8621. Each U.S. Holder is advised to consult its tax advisors regarding the potential tax consequences to such holder if we are or become a PFIC, including the possibility of making a mark-to-market election.
Information Reporting
U.S. Holders may be subject to information reporting to the United States Internal Revenue Service with respect to dividends on and proceeds from the sale or other disposition of our H shares or ADSs. U.S. Holders are urged to consult their tax advisors regarding the application of the United States information reporting and backup rules to their particular circumstances.
Certain U.S. Holders who hold “specified"specified foreign financial assets”assets", including stock of a non-U.S. corporation that is not held in an account maintained by a U.S. “financial institution”"financial institution", whose aggregate value exceeds $50,000 during the tax year, may be required to attach to their tax returns for the year certain specified information. An individual who fails to timely furnish the required information may be subject to a penalty. U.S. Holders are urged to consult their tax advisors regarding their reporting obligations under this legislation.
F.F.             Dividends and paying agents
Not applicable.

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G.Statement by experts
Not applicable.
G.            Statement by experts
H.Not applicable.
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H.            Documents on display
We are subject to the information reporting requirements of the Securities Exchange Act of 1934 (the “Exchange Act”"Exchange Act") and, in accordance with the Act, file certain reports and other information with the SEC. You may read and copy any report, statement or other information filed by us at the SEC’sSEC's public reference rooms in Washington, D.C., New York and Chicago, Illinois. Please call the SEC at 1-800-0330 for further information on the public reference rooms. Our reports and other information filed with the SEC are also available to the public from commercial document retrieval services and the website maintained by the SEC at http://www.sec.gov.
I.I.              Subsidiary information
Not applicable.
ITEM 11ITEM 11    Quantitative and Qualitative Disclosures About Market Risk
Our primary market risk exposures are fluctuations of fuel prices, foreign exchange rates and interest rates.
Equity price risk
The available-for-sale financial assets and trading securities of the Company and its subsidiaries are exposed to equity security price risk. The trading securities were disposed of in 2014.
Detailed information relating to the available-for-sale financial assets is disclosed in Note 10 to the financial statements. The Company has a supervisor in the supervisory committee of the most significant investment in available-for-sale financial assets (China Yangtze Power Co., Ltd.) and exercises influence in safeguarding its interest.may exercise protective rights. The Company also closely monitors the pricing trends in the open market in determining its long-term strategic stakeholding decisions.
The Company and its subsidiaries are exposed to fuel price risk on fuel purchases. In particular, SinoSing Power and its subsidiaries use fuel oil swap to hedge against such a risk and designate them as cash flow hedges. Please refer to Note 1314 to the financial statements for details.
Foreign exchange rate risk
A portion of our Renminbi revenues are converted into other currencies to (i) repay our debts denominated in currencies other than RMB, and (ii) pay for imported equipment.
The exchange rate of Renminbi to foreign currencies may fluctuate and is affected by, among other things, changes in China’sChina's political and economic conditions. The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the PBOC. On July 21, 2005, the PRC government introduced a floating exchange rate system to allow the value of Renminbi to fluctuate within a regulated band based on market supply and demand and by reference to a basket of foreign currencies. Renminbi appreciated by more than 20% against the U.S. dollar between July 2005 and July 2008. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. On June 19, 2010, the PBOC decided to further promote the reform of the Renminbi exchange rate formation mechanism, and improve the flexibility of the Renminbi exchange rate. Since June 2010, the Renminbi has regained steady appreciation against the U.S. dollar, which was reversed by a slight depreciation of Renminbi against the U.S. dollar at the turn to and early 2014. On March 15, 2014, the PBOC announced to further widen the Remninbi’sRemninbi's daily trading band against the U.S. dollar from 1% to 2% on either side of the daily reference rate, allowing for greater fluctuations of the exchange rate. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future. There remains significant international pressure on the PRC Government to further liberalize its currency policy. We cannot assure you that any future movements in the exchange rate of the Renminbi against the U.S. dollar and other currencies will not adversely affect our results of operations and financial conditions.
SinoSing Power and its subsidiaries are exposed to foreign exchange risk on fuel purchases that is denominated primarily in U.S. dollars. They use forward exchange contracts to hedge almost all of their estimated
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foreign exchange exposure in respect of forecast fuel purchases over the following three months. The Company and its subsidiaries account for their forward foreign currency contracts as cash flow hedges.
The following table provides information, by maturity date, regarding our foreign currency sensitive financial instruments, which consist of bank balances and cash, short-term and long-term debt obligations, capital commitments and forward exchange contracts as of December 31, 20142016 and average interest rates for the year ended December 31, 2014.

95
2016.
(RMB expressed in millions, except interest rate and exchange rate)
  As of December 31, 2016 
  Expected Maturity Date  Total  Fair Value 
  2017  2018  2019  2020  2021  Thereafter       
On-balance sheet financial instruments                        
Bank balances and cash:                        
In U.S. Dollar  320   -   -   -   -   -   320   320 
In Japanese Yen  0.184   -   -   -   -   -   0.184   0.184 
                                 
Debts                                
Japanese Yen  7   7   7   7   7   128   163   105 
Average interest rate  0.750   0.750   0.750   0.750   0.750   0.750   —   — 
Euro  68   68   40   32   32   46   286   230 
Average interest rate  2.085   2.085   2.040   2.013   2.010   2.007   —   — 
                                 
U.S. Dollar  389   389   389   389   389   898   2,843   2,843 
Average interest rate  1.920   1.920   1.920   1.920   1.920   1.920   —   — 
                                 
Gas purchase commitments (U.S. Dollar)  5,703   5,703   5,703   5,718   5,703   17,776   46,305     

  As of December 31, 2016 
  Expected Maturity Date  Total  Fair Value 
  2017  2018  2019  2020  2021  Thereafter       
Forward exchange contracts                        
(Receive US $ / Pay S$)                        
Contract amount  1,884   498   155   1   -   -   2,538   107 
Average Contractual Exchange Rate  1.39   1.39   1.39   1.37   -   -   —   — 

  As of December 31, 2015 
  Expected Maturity Date  Total  Fair Value 
  2016  2017  2018  2019  2029  Thereafter       
On-balance sheet financial instruments                        
Bank balances and cash:                        
In U.S.Dollar  560   -   -   -   -   -   560   560 
In Japanese Yen  0.205   -   -   -   -   -   0.205   0.205 
In Hong Kong Dollar  0.128   -   -   -   -   -   0.128   0.128 
                                 
Debts                                
Japanese Yen  6   6   6   6   6   122   152   81 
Average interest rate  0.750   0.750   0.750   0.750   0.750   0.750   —   — 
                                 
Euro  66   66   60   42   32   78   344   288 
Average interest rate  2.085   2.085   2.079   2.048   2.014   2.013   —   — 
                                 
U.S. Dollar  389   389   389   389   389   1,125   3,070   3,070 
Average interest rate  1.380   1.380   1.380   1.380   1.380   1.380   —   — 
                                 
Gas purchase commitments (U.S. Dollar)  3,579   3,621   3,621   3,621��  3,631   14,502   32,575   32,575 

  As of December 31, 2015 
  Expected Maturity Date  Total  Fair Value 
  2016  2017  2018  2019  2020  Thereafter       
Forward exchange contracts                        
(Receive US$/Pay S$)                        
Contract amount  2,105   528   140   27   -   -   2,800   139 
Average Contractual Exchange Rate  1.36   1.34   1.37   1.39   -   -   —   — 

  
As of December 31, 2014
 
  
Expected Maturity Date
  
Total Carrying Amount
  
Fair Value
 
  
2015
  
2016
  
2017
  
2018
  
2019
  
Thereafter
       
On-balance sheet financial instruments                        
Bank balances and cash:                        
In U.S. Dollar
  753   -   -   -   -   -   753   753 
In Japanese Yen
  0.004   -   -   -   -   -   0.004   0.004 
In Hong Kong Dollar
  2,445   -   -   -   -   -   2,445   2,445 
                                 
Debts                                
Fixed rate bank loans                                
(U.S. Dollar)
  16   -   -   -   -   -   16   16 
Average interest rate
  6.360   -   -   -   -   -   —   — 
                                 
Fixed rate bank loans(Euro)
  70   70   70   63   44   115   432   373 
Average interest rate
  2.065   2.065   2.065   2.071   2.102   2.137   —   — 
                                 
Variable rate bank and other loans                  ��             
(U.S. Dollar)
  408   389   389   389   389   1334   3,298   3,298 
Average interest rate
  1.696   1.740   1.740   1.740   1.740   1.740   —   — 
                                 
Gas purchase commitments (U.S. Dollar)  6,247   6,247   6,336   6,336   6,336   33,529   65,031   65,031 
  As of December 31, 2014 
  
Expected Maturity Date
  
Total Carrying Amount
  
Fair Value
 
  
2015
  
2016
  
2017
  
2018
  
2019
  
Thereafter
       
Forward exchange contracts
(Receive US $ / Pay S$)
                                
Contract amount  2,481   688   182   -   -   -   3,351   117 
Average Contractual Exchange Rate  1.28   1.26   1.26   -   -   -   —   — 
  As of December 31, 2013 
  Expected Maturity Date  Total Carrying Amount  Fair Value 
  2014  2015  2016  2017  2018  Thereafter       
On-balance sheet financial instruments                        
Bank balances and cash:                        
In U.S.Dollar  543   -   -   -   -   -   543   543 
In Japanese Yen  0.0150   -   -   -   -   -   0.0150   0.0150 
In Hong Kong Dollar  -   -   -   -   -   -   -   - 
                                 
Debts                                
Fixed rate bank loans                                
(U.S. Dollar)  32   16   -   -   -   -   48   47 
Average interest rate  6.360   6.360   -   -   -   -   —   — 
                                 
Fixed rate bank loans(Euro)  78   78   78   78   72   182   566   417 
Average interest rate  2.089   2.093   2.100   2.111   2.127   2.127   —   — 
                                 
Variable rate bank and other loans                                
(U.S. Dollar)  423   404   384   384   384   1,730   3,709   3,709 
Average interest rate  1.734   1.740   1.740   1.740   1.740   1.740   —   — 
                                 
Gas purchase commitments (U.S. Dollar)  1,759   1,103   1,103   1,103   1,103   6,885   13,056   13,056 
  Notional Amount Expected Maturity Date  Total Notional Amount  Fair Value 
  2014  2015  2016  2017  2018  Thereafter       
Forward exchange contracts
(Receive US$/Pay S$)
                                
Contract amount  2,431   299   82   -   -   -   2,812   34 
Average Contractual Exchange Rate  1.25   1.25   1.25   -   -   -   —   — 
                                 
Note:138
(1)The interest rates for variable rate bank and other loans are calculated based on the individual year beginning indices.
The outstanding balance of the Company’sCompany's loans denominated in foreign currencies has changed continually as a result of repayments of the loans by the Company according to agreed-upon repayment schedules. The loans denominated in U.S. dollars decreased from RMB3.77RMB3.07 billion as of December 31, 20132015 to RMB3.31RMB2.84 billion as of December 31, 2014.2016. The loans denominated in Euros decreased from RMB566RMB344 million as of December 31, 20132015 to RMB431RMB286 million as of December 31, 2014.
2016.
Interest rate risk
We are exposed to interest rate risk primarily resulting from fluctuations in interest rates on our debts. Upward fluctuations in interest rates increase the cost of new variable rate debts and the interest cost of outstanding floating rate borrowings.
At present, the interest rate of the Company’sCompany's loans denominated in RMB is subject to the change of the benchmark interest rate published and adjusted by the PBOC. Different interest rate levels correspond to loans with different terms. New loan contracts entered into hereafter will be subject to current benchmark interest rates. A portion of the Company’sCompany's loans denominated in foreign currency are fixed rate loans, which are not subject to the changes in market interest rates. Due to the loans borrowed in relation to the acquisition of SinoSing Power, the portion of the loans denominated in foreign currency with floating interest rates increased, which subjects the finance cost of the Company to the fluctuation of market interest rates. In 2009, the Company entered into a floating-to-fixed interest rate swap agreement to hedge against the cash flow interest rate risk of part of the loan. According to the interest rate swap agreement, the Company agrees with the counterparty to settle the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amounts quarterly until 2019. The notional amount of the outstanding interest rate swap at December 31, 20142016 was US$278208 million.
In 2009, Tuas Power completed its refinancing, through which all of its outstanding loans denominated in U.S. dollars were refinanced through loans denominated in Singapore dollars, matching the functional currency of its operation. The loans borrowed by Tuas Power were denominated in Singapore dollars, and the majority of them are with floating interest rates, which subjects the finance cost of the Company to the fluctuation of market interest rates. In 2012 and 2013, TPG also entered into a number of floating-to-fixed interest rate swap agreements to hedge against the cash flow interest rate risk of the loan. According to these interest rate swap agreements, TPG agrees with the counterparty to settle the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amount semi-annually until 2020. The notional amount of the outstanding interest rate swap at December 31, 20142016 was S$1,440.9US$1,358.8 million.

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The table below provides information about the Company and its subsidiaries’subsidiaries' derivative financial instruments and other financial instruments that are sensitive to changes in interest rates, including interest rate swaps and debt obligations. For debt obligations, the table presents principal cash flows and related weighted average interest rates by expected maturity dates. For interest rate swaps, the table presents notional amounts and weighted average interest rates by expected (contractual) maturity dates. Notional amounts are used to calculate the contractual payments to be exchanged under the contract. Weighted average variable rates are based on implied forward rates in the yield curve at the reporting date.
(RMB expressed in millions, except interest rates)
  As of December 31, 2016 
  Expected Maturity Date     Fair 
  2017  2018  2019  2020  2021  Thereafter  Total  Value 
Debts                        
Shareholder's, bank and other loans  67,230   12,136   12,034   8,698   7,851   24,271   132,220   132,144 
Average interest rate  3.550   3.404   3.157   2.951   2.725   2.725   —   — 
                                 
Short-term bonds  27,311   -   -   -   -   -   27,311   27,311 
Average interest rate  3.453   -   -   -   -   -   —   — 
                                 
Long-term bonds  3,295   3,989   3,994   -   3,000   1,200   15,478   15,714 
Average interest rate  4.786   4.476   3.625   3.625   3.982   3.982   —   — 

  
As of December 31, 2014
 
  
Expected Maturity Date
  
Total Carrying Amount
  
Fair Value
 
  
2015
  
2016
  
2017
  
2018
  
2019
  
Thereafter
       
Debts                        
Fixed rate shareholder’s, bank and other loans  16,386   3,932   3,991   4,554   5,602   12,936   47,401   47,261 
Average interest rate  6,646   7.183   8.140   7.022   5.469   5.469   —   — 
                                 
Variable rate bank and other loans  34,536   5,065   5,302   1,114   1,268   13,875   61,160   61,160 
Average interest rate  3.542   3.216   2.594   2.556   2.498   2.498   —   — 
                                 
Short-term bonds  18,245   -   -   -   -   -   18,245   18,245 
Average interest rate  4.784   -   -   -   -   -   —   — 
                                 
Long-term bonds  5,021   11,479   3,279   3,974   3,993   -   27,746   28,032 
Average interest rate  5.494   5.621   5.395   5.370   5.370   -   —   — 
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  As of December 31, 2016 
  Notional Amount Expected Maturity Date     Fair 
  2017  2018  2019  2020  2021  Thereafter  Total  Value 
Debts                        
Interest Rate Derivatives (US$)                        
Variable to Fixed  222   222   999   -   -   -   1,443   (70)
Average receive rate  1.86%  2.34%  2.69%  -   -   -   —   — 
Average pay rate  4.40%  4.40%  4.40%  -   -   -   —   — 
                                 
Interest Rate Derivatives (S$)                                
Variable to Fixed  1,393   1,132   178   3,819   -   -   6,522   (99)
Average receive rate  1.04%  1.57%  1.78%  1.96%  -   -   —   — 
Average pay rate  2.468%  2.508%  2.531%  2.531%  -   -   —   — 
  
As of December 31, 2014
 
  
Notional Amount Expected Maturity Date
  
Total Carrying Amount
  
Fair Value
 
  
2015
  
2016
  
2017
  
2018
  
2019
  
Thereafter
       
Debts                        
Interest Rate Derivatives (US$)                        
Variable to Fixed  196   196   196   196   881   -   1,665   99 
Average receive rate  1.48%  2.43%  3.23%  3.56%  3.73%  -   —   — 
Average pay rate  4.40%  4.40%  4.40%  4.40%  4.40%  -   —   — 
                                 
Interest Rate Derivatives (S$)                                
Variable to Fixed  190   190   1,347   1,094   172   3,692   6,685   224 
Average receive rate  0.51%  0.76%  1.10%  1.45%  1.73%  1.90%  —   — 
Average pay rate  2.452%  2.452%  2.468%  2.508%  2.531%  2.531%  —   — 

  As of December 31, 2015 
  Expected Maturity Date     Fair 
  2016  2017  2018  2019  2020  Thereafter  Total  Value 
Debts                        
Shareholder's, bank and other loans  62,235   12,093   9,201   9,287   6,675   28,773   128,264   128,196 
Average interest rate  4.274   4.207   4.134   4.010   3.892   3.892   —   — 
                                 
Short-term bonds  19,348   -   -   -   -   -   19,348   19,348 
Average interest rate  4.387   -   -   -   -   -   —   — 
                                 
Long-term bonds  11,481   3,287   3,981   3,993   -   -   22,742   23,155 
Average interest rate  5.621   5.395   5.370   5.370   -   -   —   — 

  As of December 31, 2015 
  Notional Amount Expected Maturity Date     Fair 
  2016  2017  2018  2019  2020  Thereafter  Total  Value 
Debts                        
Interest Rate Derivatives (US$)                        
Variable to Fixed  208   208   208   934   -   -   1,558   (80)
Average receive rate  1.89%  2.71%  3.14%  3.29%  -   -   —   — 
Average pay rate  4.40%  4.40%  4.40%  4.40%  -   -   —   — 
                                 
Interest Rate Derivatives (S$)                                
Variable to Fixed  188   1,331   1,082   170   3,650   -   6,421   (38)
Average receive rate  1.62%  1.84%  2.02%  2.22%  2.35%  -   —   — 
Average pay rate  2.452%  2.468%  2.508%  2.531%  2.531%  -   —   — 
  As of December 31, 2013 
  Expected Maturity Date  Total Carrying Amount  Fair Value 
  2014  2015  2016  2017  2018  Thereafter       
Debts                        
Fixed rate shareholder’s, bank and other loans  49,906   6,799   4,138   4,129   4,690   19,815   89,477   89,161 
Average interest rate  5.871   5.901   5.977   5.996   6.003   5.996   —   — 
                                 
Variable rate bank and other loans  828   878   4,474   1,135   851   13,605   21,771   21,771 
Average interest rate  1.909   1.914   1.917   1.921   1.926   1.740   —   — 
                                 
Short-term bonds  15,135   -   -   -   -   -   15,135   15,135 
Average interest rate  5.32   -   -   -   -   -   —   — 
                                 
Long-term bonds  5,678   4,998   11,473   3,297   3,972   -   29,418   29,275 
Average interest rate  4.673   5.540   5.460   6.170   5.42   -   —   — 
  As of December 31, 2013 
  Notional Amount Expected Maturity Date  Total Carrying Amount  Fair Value 
  2014  2015  2016  2017  2018  Thereafter       
Debts                        
Interest Rate Derivatives (US$)                        
Variable to Fixed  195   195   195   195   195   878   1,853   116 
Average receive rate  1.40%  1.70%  2.70%  3.90%  4.70%  5.20%  —   — 
Average pay rate  4.4%  4.4%  4.4%  4.4%  4.4%  4.4%  —   — 
                                 
Interest Rate Derivatives (S$)                                
Variable to Fixed  383   383   383   383   383   5,177   7,092   265 
Average receive rate  0.26%  0.34%  0.56%  0.91%  1.32%  1.80%  —   — 
Average pay rate  2.452%  2.452%  2.452%  2.452%  2.452%  2.452%  —   — 
Note:
(1)The interest rates for variable rate bank and other loans are calculated based on the individual year beginning indices.

As of December 31, 2014,2016, the Company’s floating rateCompany's loans denominated in foreign currency amounted to RMB3,298RMB3,292 million, accounting for approximately 88.04% of the total foreign loans, most of which was denominated in U.S. dollars, and the average credit spread is 99 bps.dollars. In addition, SinoSing Power’sPower's loans denominated in Singapore dollars are floating rate loans and amounted to RMB12,871RMB12,385 million as of December 31, 2014.2016. The interest rates of the loans denominated in U.S. dollars and Singapore dollars are relatively low at the current market condition and it is not expected that a significant fluctuation would occur within the foreseeable period, thus it is not expected to cause any material adverse effect on the finance cost of the Company. The Company has paid special attention to the trend of the international interest rate market by keeping up with the market conditions and predicting the future trend, and has made efforts to explore the feasibility of risk management by application of derivative financial instruments. The Company expects to implement the relevant plan according to its internal approval procedures and use interest rate swaps and other derivative financial instruments to control its interest rate risk upon appropriate time.

97
Commodity price risk
We are exposed to fuel price risk on fuel purchases. SinoSing Power and its subsidiaries use fuel oil swap to hedge against such risk. The table below provides information about the fuel swap contracts that are sensitive to
140
changes in fuel prices, including contract volumes, the weighted average contract prices, and the total contract amount by expected maturity dates.
(RMB expressed in millions, except interest rates and exchange rates)

 
As of December 31, 2014
  As of December 31, 2016 
 
Expected Maturity Date
  
Total
  
Fair Value
  Expected Maturity Date     Fair 
 
2015
  
2016
  
2017
  
2018
  
2019
  
Thereafter
        2017  2018  2019  2020  2021  Thereafter  Total  Value 
Fuel swap contracts                        
Fuel Swap contracts                        
Contract Volumes (MT)  631,530   207,775   54,965   -   -   -   894,270   -   715,675   241,015   74,050   -   -   -   1,030,740   — 
Weighted Average Price (US$/MT)  531.01   545.44   551.09   -   -   -   —   — 
Weighted Average Prce (US$/MT)  312.03   298.48   305.44   -   -   -   —   — 
Contract Amount (RMB million)  2,056   695   186   -   -   -   2,937   (991)   1,551   500   156   -   -   -   2,207   103 
                                
Contract Volumes (BBL)  927,900   -   -   -   -   -   927,900   -   78,960   -   -   -   -   -   78,960   — 
Weighted Average Price (US$/BBL)  90.47   -   -   -   -   -   —   —   51.63   -   -   -   -   -   —   — 
Contract Amount (RMB million)  515   -   -   -   -   -   515   17   28   -   -   -   -   -   28   2 
 
  As of December 31, 2015 
  Expected Maturity Date      Fair 
   2016   2017   2018   2019   2020  Thereafter  Total  Value 
Fuel Swap contracts                                
Contract Volumes (MT)  930,660   204,205   54,855   10,210   -   -   1,199,930   — 
Weighted Average Prce (US$/MT)  338.59   408.86   389.49   389.54   -   -   —   — 
Contract Amount (RMB million)  2,044   541   139   26   -   -   2,750   (1,141)
Contract Volumes (BBL)  361,100   -   -   -   -   -   361,100   — 
Weighted Average Price (US$/BBL)  48.54   -   -   -   -   -   —   — 
Contract Amount (RMB million)  114   -   -   -   -   -   114   - 
  As of December 31, 2013 
  Expected Maturity Date  Total  Fair Value 
  2014  2015  2016  2017  2018  Thereafter       
Fuel swap contracts                        
Contract Volumes (MT)  710,410   148,890   29,855   -   -   -   889,155   — 
Weighted Average Price (US$/MT)  603.99   598.95   591.78   -   -   -   —   — 
Contract Amount (RMB million)  2,616   544   108   -   -   -   3,268   32 

For other detailed information of the market risk, please refer to the Note 3(a)(i) to the “Financial Statements”"Financial Statements".
ITEM 12    Description of Securities Other than Equity Securities
ITEM 12Description of Securities Other than Equity Securities
A.A.            Debt Securities
Not applicable.
B.B.            Warrants and Rights
Not applicable.
C.C.            Other Securities
Not applicable.
D.D.            American Depositary Shares
Depositary Fees and Charges
Under the terms of the Deposit Agreement for Huaneng Power International, Inc.’s's American Depositary Shares (ADSs), an ADS holder may have to pay the following services fees to the Depositary:
Services
 
Fees
Issuance of ADSs $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) issued
Cancellation of ADSs $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) canceled
Distribution of cash dividends or other cash distributions $2.00 (or less) per 100 ADSs (or portion of 100 ADSs) held

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ServicesFees
Distribution of ADSs pursuant to stock dividends, free stock distributions or exercises of rights $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) held
Distribution of securities other than ADSs or rights to purchase additional ADSs $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) held
An ADS holder will also be responsible to pay certain fees and expenses incurred by the Depositary and certain taxes and governmental charges such as:
·taxes and other governmental charges;
·such registration fees as may from time to time be in effect for the registration of transfers of H Shares generally on the H Share register of the Company or Foreign Registrar and applicable to transfers of H Shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals;
·such cable, telex and facsimile transmission expenses as are expressly provided in the Deposit Agreement;
·such expenses as are incurred by the Depositary in the conversion of foreign currency; and
·any other charge payable by the Depositary, any of the Depositary’sDepositary's agents, including the Custodian, or the agents of the Depositary’sDepositary's agents in connection with the servicing of H Shares or other Deposited Securities.

98
Depositary Payments for the Year 2014
2016
In 2014,2016, we received the payment of US$0.283 million129,108 (inclusive of withholding tax) from the Bank of New York Mellon, the Depositary for our ADR program, for the reimbursement of our expenses related to investors’investors' relation activities and training activities.

99
PART II
ITEM 13ITEM 13    Defaults, Dividend Arrearages and Delinquencies
None.
ITEM 14ITEM 14    Material Modifications to the Rights of Security Holders and Use of Proceeds
None.
ITEM 15ITEM 15    Controls and Procedures
Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”"Exchange Act")) as of December 31, 20142016 (the “Evaluation Date”"Evaluation Date"), the end of the fiscal year covered by this annual report. Based on this evaluation, our principal executive officer and principal financial officer have concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective.
Management’sManagement's Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f). The Company conducted an evaluation of the effectiveness of the design and implementation of our internal control over financial reporting based upon the framework in Internal Control-Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission as of the end of the period covered by this annual report. The evaluation is conducted
142
under the supervision and with the participation of our management including the chairman of the board, or principal executive officer and the chief accountant, or principal financial officer of the Company. Based on that evaluation, our management has concluded that our internal control over financial reporting was effective as of December 31, 2014.2016. The effectiveness of the Company’sCompany's internal control over financial reporting as of December 31, 20142016 has been audited by KPMG Huazhen LLP, an independent registered public accounting firm, as stated in their report which appears herein.
Because of its inherent limitations, internal control over financial reporting may only provide reasonable assurance for preventing or detecting misstatements. In addition, projections of any evaluation of effectiveness of our internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders of Huaneng Power International, Inc.:

We have audited Huaneng Power International, Inc.’s internal control over financial reporting as of December 31, 2014,2016, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The management of Huaneng Power International, Inc. is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the internal control over financial reporting of Huaneng Power International, Inc. based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

100
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Huaneng Power International, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014,2016, based on criteria established in Internal Control – Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheetsstatement of financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2014 and 2013,2016, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the years in the three-year periodyear then ended, December 31, 2014, and our report dated March 24, 201521, 2017 expressed an unqualified opinion on those consolidated financial statements.
 
/s/ KPMG Huazhen LLP
 
Hong Kong,Beijing, China

March 24, 201521, 2017

 
101143
Changes in Internal Control over Financial Reporting
During the year ended December 31, 2014,2016, no changes occurred in our internal controls over financial reporting that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting. On May 14, 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) published an updated Internal Control-Integrated Framework (2013) and related illustrative documents. The Company adopted the new framework in 2014.
ITEM 16    Reserved
ITEM 16Reserved
ITEM 16A
ITEM 16A    Audit Committee Financial Expert
The Board of Directors has determined that Mr. Yue Heng and Mr. Qi. YudongGeng Jianxin qualify as Audit Committee Financial Experts in accordance with the terms of Item 16A of Form 20-F. We held election at expiration of office terms of the Board in 2014 and adjusted the members of the Audit Committee accordingly. Mr. Yue Heng and Mr. Qi Yudong were respectively qualified as Financial Experts at the first Board meeting of 18th session of the Board in September 2014. See “Item"Item 6 Directors, Senior Management and Employees – A. Directors, members of the supervisory committee and senior management”management".
ITEM 16B
ITEM 16B    Code of Ethics
Although, as of the date of this annual report, we do not have, in form, a code of ethics that applies to the Company’sCompany's principal executive officer, principal financial officer and principal accounting officer (collectively, the “Senior"Senior Corporate Officers”Officers"), we believe that, as a substantive matter, the Senior Corporate Officers are subject to a set of written requirements under the PRC law that are substantially similar to the ethical standards described under Item 16B (b) of Form 20-F. Joint stock companies that are incorporated in China and listed on both PRC and foreign stock exchanges are heavily regulated by the central government. To a large extent, these requirements, which are designed to promote honest and ethical conduct and compliance with applicable laws and regulations by the directors and senior executives of such companies, are not merely ethical requirements, but more importantly, statutory obligations that are legally binding on these individuals under the PRC Company Law, relevant rules and regulations promulgated by China Securities Regulatory Commission and the Mandatory Provisions of Articles of Association of Overseas Listed Companies.
ITEM 16C
ITEM 16C    Principal Accountant Fees and Services
KPMG hasHuazhen LLP and KPMG have served as our independent registered public accounting firm for the fiscal years ended December 31, 20142016 and 2013,2015, respectively, for which audited consolidated financial statements appear in this annual report on Form 20-F.
144
The following table shows information about fees payable by us to KPMG Huazhen LLP and KPMG in 20132016 and 2014,2015, respectively.
(RMB million) 
For the Year Ended
December 31,
 
  2016  2015 
Audit fees  30.2   29.2 
Audit-related fees  4.9   - 
Tax fees  0.4   0.4 
All other fees  2.8   0.7 
Total  38.3   30.3 
(RMB million) 
For the Year Ended
December 31,
 
  
2014
  
2013
 
       
Audit fees  26.2   25.3 
Audit-related fees  1.5   0.4 
Tax fees  0.4   0.4 
All other fees  2.0   - 
Total  30.1   26.1 
Tax Fees
Services provided primarily consist of tax compliance services.
Audit services are defined as the standard audit work that needs to be performed each year in order to issue an opinion on the consolidated financial statements and internal control over financial reporting of the Company and its subsidiaries. It also includes other audit services, which are those services that only the external auditors reasonably can provide, such as reviews of quarterly financial results.
Audit-related Fees

Audit-related services include those other assurances and related services provided by auditors, but not restricted to those that can only reasonably be provided by the external auditors signing the auditors’ report, that are reasonably related to the performance of the audit or review of the Company’s financial statements, such as acquisition due diligence, consultations concerning financial accounting and reporting standards.statements. The increase of audit-related fees was mainly due to service feesin 2016 were related to acquisitions.acquisition audits.
Tax services include the assistance with compliance and reporting of corporate income tax and value-added tax, assistance with our assessment of new or changing tax regimes, assessment of our transfer pricing policies and practices, and assistance with assessing relevant rules, regulations and facts going into our correspondence with tax authorities.
All Other Fees
Provision of other services provided by KPMG in 2014 include the non-audit services related to the Company’s investment projects.assurance and advisory service.
102
AuditReport of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders of Huaneng Power International, Inc.:

We have audited Huaneng Power International, Inc.’s internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee Pre-approval Policiesof Sponsoring Organizations of the Treadway Commission (COSO). The management of Huaneng Power International, Inc. is responsible for maintaining effective internal control over financial reporting and Procedures
for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the internal control over financial reporting of Huaneng Power International, Inc. based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Huaneng Power International, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statement of financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2016, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for the year then ended, and our report dated March 21, 2017 expressed an unqualified opinion on those consolidated financial statements.
/s/ KPMG Huazhen LLP
 
Beijing, ChinaThe
March 21, 2017
143
Changes in Internal Control over Financial Reporting
During the year ended December 31, 2016, no changes occurred in our internal controls over financial reporting that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.
ITEM 16    Reserved
ITEM 16A    Audit Committee Financial Expert
The Board of Directors has determined that Mr. Yue Heng and Mr. Geng Jianxin qualify as Audit Committee Financial Experts in accordance with the terms of Item 16A of Form 20-F. See "Item 6 Directors, Senior Management and Employees – A. Directors, members of the supervisory committee and senior management".
ITEM 16B    Code of Ethics
Although, as of the date of this annual report, we do not have, in form, a code of ethics that applies to the Company's principal executive officer, principal financial officer and principal accounting officer (collectively, the "Senior Corporate Officers"), we believe that, as a substantive matter, the Senior Corporate Officers are subject to a set of written requirements under the PRC law that are substantially similar to the ethical standards described under Item 16B (b) of Form 20-F. Joint stock companies that are incorporated in China and listed on both PRC and foreign stock exchanges are heavily regulated by the central government. To a large extent, these requirements, which are designed to promote honest and ethical conduct and compliance with applicable laws and regulations by the directors and senior executives of such companies, are not merely ethical requirements, but more importantly, statutory obligations that are legally binding on these individuals under the PRC Company Law, relevant rules and regulations promulgated by China Securities Regulatory Commission and the Mandatory Provisions of Articles of Association of Overseas Listed Companies.
ITEM 16C    Principal Accountant Fees and Services
KPMG Huazhen LLP and KPMG have served as our independent registered public accounting firm for the fiscal years ended December 31, 2016 and 2015, respectively, for which audited consolidated financial statements appear in this annual report on Form 20-F.
144
The following table shows information about fees payable by us to KPMG Huazhen LLP and KPMG in 2016 and 2015, respectively.
(RMB million) 
For the Year Ended
December 31,
 
  2016  2015 
Audit fees  30.2   29.2 
Audit-related fees  4.9   - 
Tax fees  0.4   0.4 
All other fees  2.8   0.7 
Total  38.3   30.3 
Tax Fees
Services provided primarily consist of tax compliance services.
Audit-related Fees

Audit-related services include those other assurances and related services provided by auditors, but not restricted to those that can only reasonably be provided by the external auditors signing the auditors’ report, that are reasonably related to the performance of the audit or review of the Company’s Boardfinancial statements. The audit-related fees in 2016 were related to acquisition audits.
All Other Fees
Provision of Directors is responsible, among other things, for the oversight of the external auditors subject to the requirements of the PRC Lawassurance and the Company’s Articles of Association. The Audit Committee has adopted a policy regarding pre-approval of audit and permissible non-audit services to be provided by our independent auditors (the “Policy”). Under the Policy, proposed services either (i) may be pre-approved by the Audit Committee without consideration of specific case-by-case services (“general pre-approval”); or (ii) require the specific pre-approval of the Audit Committee (“specific pre-approval”). General pre-approval applies to services of recurring and predictable nature. These types of services, once approved by the Audit Committee in the beginning, will not require further approval in the future, except when actual fees and expenses exceed pre-approved budget levels. In such a case, the Audit Committee may authorize one of its members to approve budget increases subject to the requirement that such member provide a report on his decision to approve or deny an application for budget increases to the Audit Committee at an Audit Committee meeting held immediately after such member grants or denies the approval.advisory service.
Specific pre-approval applies to all other services. These services must be approved by the Audit Committee on a case-by-case basis after an application including proposed budget and scope of services to be provided by our independent auditors is submitted to the Audit Committee.
For 2014, all of the services provided by KPMG were pre-approved by the Audit Committee.
ITEM 16D
Exemptions from the Listing Standard forAudit Committees
Not applicable.
ITEM 16E
Purchase of Equity Securities by the Issuer and Affiliated Purchase
Not applicable.
ITEM 16F
Change in Registrant's Certifying Account
Not applicable.
ITEM 16G
Corporate Governance
Comparison of New York Stock Exchange corporate governance rules and China corporate governance rules for listed companies: under the amended Corporate Governance Rules of New York Stock Exchange (“NYSE”), foreign issuers (including the Company) listed on the NYSE are required to disclose a summary of the significant differences between their domestic corporate governance rules and NYSE corporate governance rules that would apply to a U.S. domestic issuer. A summary of such differences is listed below:
NYSE corporate governance rules
Corporate governance rules applicable to the domestically listed companies in China and the Company’s governance practices
Director Independence
A listed company must have a majority of independent directors on its board of directors.
No director qualifies as “independent” unless the board of directors affirmatively determines that the director has no material relationship with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with the company). In addition, a director must meet certain standards to be deemed independent. For example, a director is not independent if the director is, or has been within the last three years, an employee of the listed company, or an immediate family member is, or has been within the last three years, an executive officer of the listed company, or if the director has received, or has an immediate family member who has received, during any twelve-month period within the last three years, more than US$120,000 in direct compensation from the listed company, other than director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service).
It is required in China that any listed company must establish an independent director system and set forth specific requirements for the qualification of independent directors. For example, an independent director shall not hold any other position in the listed Company other than being a director and shall not be influenced by the main shareholders or the controlling persons of the listed company, or by any other entities or persons with whom the listed company has a significant relationship. The Company has complied with the relevant Chinese corporate governance rules and has implemented internal rules governing the independence and responsibilities of independent directors. The Company determines the independence of independent directors every year.
To empower non-management directors to serve as a more effective check on management, the non-management directors of each listed company must meet at regularly scheduled executive sessions without management.No similar requirements.

103

Nominating/Corporate Governance Committee
Listed companies must have a nominating/corporate governance committee composed entirely of independent directors.The board of directors of a listed company may, through the resolution of the shareholders’ meeting, establish a nominating committee composed entirely of directors, of which the independent directors shall be the majority and the convener. The Company has established a nominating committee.
The nominating/corporate governance committee must have a written charter that addresses the committee’s purposes and responsibilities which, at minimum, must be to: search for eligible people for the board of directors, select and nominate directors for the next session of the shareholders’ annual meeting, study and propose corporate governance guidelines, supervise the evaluation of the board of directors and management, and evaluate the performance of the committee every year.Relevant responsibilities of the nominating/corporate governance committee are similar to those stipulated by the NYSE rules, but the main responsibilities do not include the research and recommendation of corporate governance guidelines, the supervision of the evaluation of the board of directors and management, or the annual evaluation of the committee.
Compensation Committee
Listed companies must have a compensation committee composed entirely of independent directors.The board of directors of a listed company can, through the resolution of shareholders’ meeting, have a compensation and evaluation committee composed entirely of directors, of whom the independent directors are the majority and act as the convener.
The compensation committee must have a written charter that addresses, at least, the following purposes and responsibilities:The responsibilities are similar to those stipulated by the NYSE rules, but the committee is not required to produce a report on the executive compensation or make an annual performance evaluation of the committee. The board of directors of the Company has established a compensation and evaluation committee composed mainly of independent directors who act as the convener, and the committee has a written charter.
(1)   review and approve the corporate goals associated with CEO’s compensation, evaluate the performance of the CEO in fulfilling these goals, and, either as a committee or together with the other independent directors (as directed by the board) based on such evaluation, determine and approve the CEO’s compensation level;
(2)   make recommendations to the board with respect to non-CEO executive officer compensation, and incentive-compensation and equity-based plans that are subject to board approval;
(3)   produce a committee report on executive compensation as required by the SEC to be included in the annual proxy statement or annual report filed with the SEC.
The charter must also include the requirement for an annual performance evaluation of the compensation committee.
The compensation committee may, in its sole discretion, retain or consult a compensation consultant, independent legal counsel or other advisor. The compensation committee shall be directly responsible for the appointment, compensation and oversight of the work of such advisor. A listed company must provide for appropriate funding for payment of reasonable compensation to such advisor. The compensation committee may select such advisor to the compensation committee only after taking into consideration all factors relevant to that person’s independence from management.
Audit Committee
Listed companies must have an audit committee that satisfies the requirements of Rule 10A-3 of Exchange Act. It must have a minimum of three members, and all audit committee members must satisfy the requirements for independence set forth in Section 303A.02 of NYSE Corporate Governance Rules as well as the requirements of Rule 10A-3(b)(1) of the Exchange Act.The board of directors of a listed company can, through the resolution of the shareholders’ meeting, establish an audit committee composed entirely of directors, of which the independent directors are the majority and act as the convener, and, at minimum, one independent director is an accounting professional.
The audit committee must have a written charter that specifies the purpose of the audit committee is, at minimum, to assist the board oversight of the integrity of financial statements, the Company’s compliance with legal and regulatory requirements, qualifications and independence of independent auditors and the performance of the listed company’s internal audit function and independent auditors.The responsibilities of the audit committee are similar to those stipulated by the NYSE rules, but according to the domestic practices, the Company is not required to make an annual performance evaluation of the audit committee, and the audit committee is not required to prepare an audit report to be included in the Company’s annual proxy statement. The Board of Directors of the Company has established an audit committee that satisfies relevant domestic requirements and the audit committee has a written charter.
104

The written charter must also require the audit committee to prepare an audit committee report as required by the SEC to be included in the listed company’s annual proxy statement as well as an annual performance evaluation of the audit committee.
The written charter must also specify the duties and responsibilities of the audit committee, which, at a minimum, must include those set out in Rules 10A-3(b)(2), (3), (4) and (5) of the Exchange Act, as well as other duties and responsibilities, such as to obtain and review a report by the independent auditor at least annually, meet to review and discuss the listed company’s annual audited financial statements and quarterly financial statements with management and independent auditor.
Each listed company must have an internal audit department.China has a similar regulatory provision, and the Company has an internal audit department.
Shareholder approval of equity compensation plan
Shareholders must be given the opportunity to vote on all equity-compensation plans and material revisions thereto, except for, among others, plans that are made available to shareholders generally, such as typical dividend reinvestment plan, certain awards and plans in the context of mergers and acquisitions.The relevant regulations of China require the board of directors to propose plans on the amount and types of director compensation for the shareholders’ meeting to approve. The compensation plan of executive officers is subject to approval by the board and announced at the shareholders’ meeting and disclosed to the public upon the approval of the board of directors.
Corporate governance guidelines
Listed companies must adopt and disclose corporate governance guidelines, involving director qualification standards, director responsibilities, director compensation, director continuing education, annual performance evaluation of the board of directors, etc.CSRC has issued the Corporate Governance Rules, with which the Company has complied.
Code of ethics for directors, officers and employees
Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers. Each code of business conduct and ethics must require that any waiver of the code for executive officers or directors may be made only by the board or a board committee.China does not have such requirement for a code for ethics. But, the directors and officers must perform their legal responsibilities in accordance with the Company Law of PRC, relative requirements of CSRC and Mandatory Provisions to the Charter of Companies Listed Overseas.
Each listed company’s CEO must certify to the NYSE each year that he or she is not aware of any violation by the listed company of NYSE corporate governance listing standards and he or she must promptly notify the NYSE in writing of any non-compliance with any applicable provisions of Section 303A.No similar requirements.

ITEM 16H
Mine Safety Disclosure
Not applicable.
ITEM 17Financial Statements
Not applicable.
ITEM 18Financial Statements
See page F-1 through F-105 following Item 19.

105
ITEM 19Exhibits

1.1Articles of Association amended and adopted by the Shareholders’ meeting on March 12, 2013.
8A list of subsidiaries.
12.1Certifications of Principal Executive Officer pursuant to Rule 13a-14(a) promulgated under the U.S. Securities Exchange Act of 1934.
12.2Certifications of Principal Financial Officer pursuant to Rule 13a-14(a) promulgated under the U.S. Securities Exchange Act of 1934.
13.1Certification pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


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107

Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders of Huaneng Power International, Inc.:

We have audited Huaneng Power International, Inc.’s internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The management of Huaneng Power International, Inc. is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the internal control over financial reporting of Huaneng Power International, Inc. based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Huaneng Power International, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheetsstatement of financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2014 and 2013,2016, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for eachthe year then ended, and our report dated March 21, 2017 expressed an unqualified opinion on those consolidated financial statements.
/s/ KPMG Huazhen LLP
Beijing, China
March 21, 2017
143
Changes in Internal Control over Financial Reporting
During the year ended December 31, 2016, no changes occurred in our internal controls over financial reporting that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.
ITEM 16    Reserved
ITEM 16A    Audit Committee Financial Expert
The Board of Directors has determined that Mr. Yue Heng and Mr. Geng Jianxin qualify as Audit Committee Financial Experts in accordance with the terms of Item 16A of Form 20-F. See "Item 6 Directors, Senior Management and Employees – A. Directors, members of the supervisory committee and senior management".
ITEM 16B    Code of Ethics
Although, as of the date of this annual report, we do not have, in form, a code of ethics that applies to the Company's principal executive officer, principal financial officer and principal accounting officer (collectively, the "Senior Corporate Officers"), we believe that, as a substantive matter, the Senior Corporate Officers are subject to a set of written requirements under the PRC law that are substantially similar to the ethical standards described under Item 16B (b) of Form 20-F. Joint stock companies that are incorporated in China and listed on both PRC and foreign stock exchanges are heavily regulated by the central government. To a large extent, these requirements, which are designed to promote honest and ethical conduct and compliance with applicable laws and regulations by the directors and senior executives of such companies, are not merely ethical requirements, but more importantly, statutory obligations that are legally binding on these individuals under the PRC Company Law, relevant rules and regulations promulgated by China Securities Regulatory Commission and the Mandatory Provisions of Articles of Association of Overseas Listed Companies.
ITEM 16C    Principal Accountant Fees and Services
KPMG Huazhen LLP and KPMG have served as our independent registered public accounting firm for the fiscal years ended December 31, 2016 and 2015, respectively, for which audited consolidated financial statements appear in this annual report on Form 20-F.
144
The following table shows information about fees payable by us to KPMG Huazhen LLP and KPMG in 2016 and 2015, respectively.
(RMB million) 
For the Year Ended
December 31,
 
  2016  2015 
Audit fees  30.2   29.2 
Audit-related fees  4.9   - 
Tax fees  0.4   0.4 
All other fees  2.8   0.7 
Total  38.3   30.3 
Tax Fees
Services provided primarily consist of tax compliance services.
Audit-related Fees

Audit-related services include those other assurances and related services provided by auditors, but not restricted to those that can only reasonably be provided by the external auditors signing the auditors’ report, that are reasonably related to the performance of the audit or review of the Company’s financial statements. The audit-related fees in 2016 were related to acquisition audits.
All Other Fees
Provision of other assurance and advisory service.
Audit Committee Pre-approval Policies and Procedures
The Audit Committee of the Company's Board of Directors is responsible, among other things, for the oversight of the external auditors subject to the requirements of the PRC Law and the Company's Articles of Association. The Audit Committee has adopted a policy regarding pre-approval of audit and permissible non-audit services to be provided by our independent auditors (the "Policy"). Under the Policy, proposed services either (i) may be pre-approved by the Audit Committee without consideration of specific case-by-case services ("general pre-approval"); or (ii) require the specific pre-approval of the Audit Committee ("specific pre-approval"). General pre-approval applies to services of recurring and predictable nature. These types of services, once approved by the Audit Committee in the three-year periodbeginning, will not require further approval in the future, except when actual fees and expenses exceed pre-approved budget levels. In such a case, the Audit Committee may authorize one of its members to approve budget increases subject to the requirement that such member provide a report on his decision to approve or deny an application for budget increases to the Audit Committee at an Audit Committee meeting held immediately after such member grants or denies the approval.
Specific pre-approval applies to all other services. These services must be approved by the Audit Committee on a case-by-case basis after an application including proposed budget and scope of services to be provided by our independent auditors is submitted to the Audit Committee.
For 2016, all of the services provided by KPMG were pre-approved by the Audit Committee.
ITEM 16D    Exemptions from the Listing Standards for Audit Committees
Not applicable.
ITEM 16E    Purchases of Equity Security by the Issuer and Affiliated Purchasers
Not applicable.
ITEM 16F    Change in Registrant's Certifying Accountant
KPMG (the “Former Auditor”) was previously the principal accountants for our company. On June 23, 2016, that firm was dismissed. With the approvals of our board, the audit committee and shareholders, we appointed KPMG Huazhen LLP, as our principal accountants for the year 2016.

The audit reports of the Former Auditor on the Company’s consolidated financial statements as of and for the years ended December 31, 2014 and 2015 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. During the two fiscal years ended December 31, 2015 and through June 23, 2016, there were no (i) disagreements with the Former Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with their opinion to the subject matter of the disagreement, or (ii) reportable events.

We provided a copy of the foregoing disclosure to the Former Auditor and requested the Former Auditor furnish a letter addressed to the SEC stating whether or not the Former Auditor agreed with such disclosure. A copy of the letter from the Former Auditor addressed to the SEC, dated April 17, 2017, was filed as Exhibit 15.1 hereto.
ITEM 16G    Corporate Governance
Comparison of New York Stock Exchange corporate governance rules and China corporate governance rules for listed companies: under the amended Corporate Governance Rules of New York Stock Exchange
145
("NYSE"), foreign issuers (including the Company) listed on the NYSE are required to disclose a summary of the significant differences between their domestic corporate governance rules and NYSE corporate governance rules that would apply to a U.S. domestic issuer.  A summary of such differences is listed below:
NYSE corporate governance rulesCorporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Director Independence
A listed company must have a majority of independent directors on its board of directors.
No director qualifies as "independent" unless the board of directors affirmatively determines that the director has no material relationship with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with the company). In addition, a director must meet certain standards to be deemed independent. For example, a director is not independent if the director is, or has been within the last three years, an employee of the listed company, or an immediate family member is, or has been within the last three years, an executive officer of the listed company, or if the director has received, or has an immediate family member who has received, during any twelve-month period within the last three years, more than US$120,000 in direct compensation from the listed company, other than director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service).
It is required in China that any listed company must establish an independent director system and set forth specific requirements for the qualification of independent directors. For example, an independent director shall not hold any other position in the listed Company other than being a director and shall not be influenced by the main shareholders or the controlling persons of the listed company, or by any other entities or persons with whom the listed company has a significant relationship. The Company has complied with the relevant Chinese corporate governance rules and has implemented internal rules governing the independence and responsibilities of independent directors. The Company determines the independence of independent directors every year.
To empower non-management directors to serve as a more effective check on management, the non-management directors of each listed company must meet at regularly scheduled executive sessions without management.No similar requirements.
Nominating/Corporate Governance Committee
Listed companies must have a nominating/corporate governance committee composed entirely of independent directors.The board of directors of a listed company may, through the resolution of the shareholders' meeting, establish a nominating committee composed entirely of directors, of which the independent directors shall be the majority and the convener. The Company has established a nominating committee.
The nominating/corporate governance committee must have a written charter that addresses the committee's purposes and responsibilities which, at minimum, must be to: search for eligible people for the board of directors, select and nominate directors for the next session of the shareholders' annual meeting, study and propose corporate governance guidelines, supervise the evaluation of the board of directors and management, and evaluate the performance of the committee every year.Relevant responsibilities of the nominating/corporate governance committee are similar to those stipulated by the NYSE rules, but the main responsibilities do not include the research and recommendation of corporate governance guidelines, the supervision of the evaluation of the board of directors and management, or the annual evaluation of the committee.

146

NYSE corporate governance rulesCorporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Compensation Committee
Listed companies must have a compensation committee composed entirely of independent directors.The board of directors of a listed company can, through the resolution of shareholders' meeting, have a compensation and evaluation committee composed entirely of directors, of whom the independent directors are the majority and act as the convener.
The compensation committee must have a written charter that addresses, at least, the following purposes and responsibilities:The responsibilities are similar to those stipulated by the NYSE rules, but the committee is not required to produce a report on the executive compensation or make an annual performance evaluation of the committee. The board of directors of the Company has established a compensation and evaluation committee composed mainly of independent directors who act as the convener, and the committee has a written charter.
(1)review and approve the corporate goals associated with CEO's compensation, evaluate the performance of the CEO in fulfilling these goals, and, either as a committee or together with the other independent directors (as directed by the board) based on such evaluation, determine and approve the CEO's compensation level;
(2)make recommendations to the board with respect to non-CEO executive officer compensation, and incentive-compensation and equity-based plans that are subject to board approval;
(3)produce a committee report on executive compensation as required by the SEC to be included in the annual proxy statement or annual report filed with the SEC.
The charter must also include the requirement for an annual performance evaluation of the compensation committee.
The compensation committee may, in its sole discretion, retain or consult a compensation consultant, independent legal counsel or other advisor. The compensation committee shall be directly responsible for the appointment, compensation and oversight of the work of such advisor. A listed company must provide for appropriate funding for payment of reasonable compensation to such advisor. The compensation committee may select such advisor to the compensation committee only after taking into consideration all factors relevant to that person's independence from management.

147

NYSE corporate governance rulesCorporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Audit Committee
Listed companies must have an audit committee that satisfies the requirements of Rule 10A-3 of Exchange Act. It must have a minimum of three members, and all audit committee members must satisfy the requirements for independence set forth in Section 303A.02 of NYSE Corporate Governance Rules as well as the requirements of Rule 10A-3(b)(1) of the Exchange Act.The board of directors of a listed company can, through the resolution of the shareholders' meeting, establish an audit committee composed entirely of directors, of which the independent directors are the majority and act as the convener, and, at minimum, one independent director is an accounting professional.
The audit committee must have a written charter that specifies the purpose of the audit committee is, at minimum, to assist the board oversight of the integrity of financial statements, the Company's compliance with legal and regulatory requirements, qualifications and independence of independent auditors and the performance of the listed company's internal audit function and independent auditors.The responsibilities of the audit committee are similar to those stipulated by the NYSE rules, but according to the domestic practices, the Company is not required to make an annual performance evaluation of the audit committee, and the audit committee is not required to prepare an audit report to be included in the Company's annual proxy statement. The Board of Directors of the Company has established an audit committee that satisfies relevant domestic requirements and the audit committee has a written charter.
The written charter must also require the audit committee to prepare an audit committee report as required by the SEC to be included in the listed company's annual proxy statement as well as an annual performance evaluation of the audit committee.
The written charter must also specify the duties and responsibilities of the audit committee, which, at a minimum, must include those set out in Rules 10A-3(b)(2), (3), (4) and (5) of the Exchange Act, as well as other duties and responsibilities, such as to obtain and review a report by the independent auditor at least annually, meet to review and discuss the listed company's annual audited financial statements and quarterly financial statements with management and independent auditor.
Each listed company must have an internal audit department.China has a similar regulatory provision, and the Company has an internal audit department.
Shareholder approval of equity compensation plan
Shareholders must be given the opportunity to vote on all equity-compensation plans and material revisions thereto, except for, among others, plans that are made available to shareholders generally, such as typical dividend reinvestment plan, certain awards and plans in the context of mergers and acquisitions.The relevant regulations of China require the board of directors to propose plans on the amount and types of director compensation for the shareholders' meeting to approve. The compensation plan of executive officers is subject to approval by the board and announced at the shareholders' meeting and disclosed to the public upon the approval of the board of directors.
Corporate governance guidelines
Listed companies must adopt and disclose corporate governance guidelines, involving director qualification standards, director responsibilities, director compensation, director continuing education, annual performance evaluation of the board of directors, etc.CSRC has issued the Corporate Governance Rules, with which the Company has complied.

148

NYSE corporate governance rulesCorporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Code of ethics for directors, officers and employees
Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers. Each code of business conduct and ethics must require that any waiver of the code for executive officers or directors may be made only by the board or a board committee.China does not have such requirement for a code for ethics. But, the directors and officers must perform their legal responsibilities in accordance with the Company Law of PRC, relative requirements of CSRC and Mandatory Provisions to the Charter of Companies Listed Overseas.
Each listed company's CEO must certify to the NYSE each year that he or she is not aware of any violation by the listed company of NYSE corporate governance listing standards and he or she must promptly notify the NYSE in writing of any non-compliance with any applicable provisions of Section 303A.No similar requirements.
ITEM 16H    Mine Safety Disclosure
Not applicable.
ITEM 17    Financial Statements
Not applicable.
ITEM 18    Financial Statements
See page F-1 through F-114 following Item 19.
ITEM 19    Exhibits
1.1Articles of Association amended and adopted by the Shareholders' meeting in June 2016.
3.1Shareholders’ Agreement dated May 31, 1994, incorporated by reference to Exhibit 9.1 of our Registration Statement on Form F-1, filed with the SEC on August 24, 1994. Amendment to Shareholders’ Agreement dated May 12, 2006, incoporated by reference to Exhibit 3.1 of our annual report on Form 20-F for the year ended December 31, 2006, filed with the SEC on April 16, 2007.
8A list of subsidiaries.
12.1Certifications of Principal Executive Officer pursuant to Rule 13a-14(a) promulgated under the U.S. Securities Exchange Act of 1934.
12.2Certifications of Principal Financial Officer pursuant to Rule 13a-14(a) promulgated under the U.S. Securities Exchange Act of 1934.
13.1Certification pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
15.1Letter from KPMG regarding Item 16F of this annual report.

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150

Report of Independent Registered Public Accounting Firm


The Board of Directors and Shareholders of Huaneng Power International, Inc.:

We have audited the accompanying consolidated statement of financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2016, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2016, and the results of their operations and their cash flows for the year then ended, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the internal control over financial reporting of Huaneng Power International, Inc. as of December 31, 2016, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated March 21, 2017 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

/s/ KPMG Huazhen LLP

Beijing, China
March 21, 2017


151

Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders of Huaneng Power International, Inc.:
We have audited the accompanying consolidated statement of financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2015, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for the years ended December 31, 2015 and 2014. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2014 and 2013,2015, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2015 and 2014, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the internal control over financial reporting of Huaneng Power International, Inc. as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated March 24, 2015 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

/s/ KPMG

Hong Kong, China
March 24, 201522, 2016
 
152
 

Huaneng Power International, Inc.
Consolidated Statements of Comprehensive Income
For the years ended 31 December 2014, 20132016, 2015 and 2012
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB, except per share data)

     For the year ended 31 December 
  Note  2014  2013  2012 
     RMB  RMB  RMB 
             
Operating revenue  5   125,406,855   133,832,875   133,966,659 
Tax and levies on operations      (932,485)  (1,043,855)  (672,040)
                 
Operating expenses                
Fuel  6   (64,762,908)  (73,807,817)  (82,355,449)
Maintenance      (3,729,912)  (3,856,975)  (2,846,521)
Depreciation      (11,646,683)  (11,293,522)  (11,032,748)
Labor      (6,259,588)  (5,762,884)  (5,112,484)
Service fees on transmission and transformer facilities of  HIPDC  35(b)   (140,771)  (140,771)  (140,771)
Purchase of electricity      (5,055,076)  (4,955,603)  (7,101,878)
Others  6   (7,604,790)  (8,860,409)  (7,747,828)
                 
Total operating expenses      (99,199,728)  (108,677,981)  (116,337,679)
                 
Profit from operations      25,274,642   24,111,039   16,956,940 
                 
Interest income      159,550   170,723   175,402 
                 
Financial expenses, net                
Interest expense  6   (7,814,114)  (7,787,472)  (8,897,097)
Exchange (loss)/ gain and bank charges, net      (9,492)  94,109   (166,778)
                 
Total financial expenses, net      (7,823,606)  (7,693,363)  (9,063,875)
                 
Share of profits less losses of associates and joint ventures
  8   1,315,876   615,083   622,358 
Gain/ (loss) on fair value changes of financial assets/liabilities      42,538   (5,701)  (1,171)
Other investment income      80,580   224,908   187,131 
                 
Profit before income tax expense  6   19,049,580   17,422,689   8,876,785 
                 
Income tax expense  32   (5,487,208)  (4,522,671)  (2,510,370)
                 
Net profit      13,562,372   12,900,018   6,366,415 
                 



The accompanying notes are an integral part of these financial statements.

F-1

Huaneng Power International, Inc.
Consolidated Statements of Comprehensive Income (continued)
For the years ended 31 December 2014 2013 and 2012
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB, except per share data)


   For the year ended 31 December 
 Note 2014  2013  2012 
   RMB  RMB  RMB 
Other comprehensive (loss)/income, net of tax          
Items that may be reclassified subsequently to profit or loss:          
Fair value changes of available-for-sale financial asset   840,289   (106,244)  98,516 
Shares of other comprehensive income/ (loss) of investees accounted for under the equity method   87,579   (35,481)  30,070 
Effective portion of cash flow hedges   (789,915)  417,891   (325,375)
Translation differences of the financial statements of foreign operations   (377,889)  (782,063)  536,231 
Other comprehensive (loss)/income, net of tax   (239,936)  (505,897)  339,442 
              
Total comprehensive income   13,322,436   12,394,121   6,705,857 
              
Net profit attributable to:             
- Equity holders of the Company   10,757,317   10,426,024   5,512,454 
- Non-controlling interests   2,805,055   2,473,994   853,961 
              
    13,562,372   12,900,018   6,366,415 
              
Total comprehensive income attributable to:             
- Equity holders of the Company   10,517,694   9,920,884   5,850,701 
- Non-controlling interests   2,804,742   2,473,237   855,156 
              
    13,322,436   12,394,121   6,705,857 
Earnings per share attributable to the equity holders of the Company (expressed in RMB per share)             
- Basic and diluted33  0.76   0.74   0.39 

     For the year ended 31 December 
  Note  2016  2015  2014 
     RMB  RMB  RMB 
             
Operating revenue  5   113,814,236   128,904,873   125,406,855 
Tax and levies on operations      (1,177,818)  (1,157,760)  (932,485)
Operating expenses                
Fuel  6   (56,617,542)  (59,242,367)  (64,762,908)
Maintenance      (4,343,349)  (4,556,361)  (3,729,912)
Depreciation      (14,815,620)  (14,411,632)  (11,646,683)
Labor      (8,043,406)  (7,751,551)  (6,259,588)
Service fees on transmission and transformer facilities of HIPDC      (138,038)  (140,771)  (140,771)
Purchase of electricity      (3,066,415) ��(3,581,517)  (5,055,076)
Others  6   (7,234,308)  (8,919,988)  (7,604,790)
Total operating expenses      (94,258,678)  (98,604,187)  (99,199,728)
Profit from operations      18,377,740   29,142,926   25,274,642 
Interest income      147,063   160,723   159,550 
Financial expenses, net                
Interest expense  6   (6,817,526)  (7,945,734)  (7,814,114)
Exchange (loss)/gain and bank charges, net      (250,076)  (24,336)  (9,492)
Total financial expenses, net      (7,067,602)  (7,970,070)  (7,823,606)
Share of profits less losses of associates and joint ventures  8   1,298,889   1,525,975   1,315,876 
(Loss) /gain on fair value changes of financial assets/liabilities      (12,986)  (16,742)  42,538 
Other investment income  6   1,070,034   115,238   80,580 
Profit before income tax expense  6   13,813,138   22,958,050   19,049,580 
Income tax expense  32   (3,465,151)  (5,698,943)  (5,487,208)
Net profit      10,347,987   17,259,107   13,562,372 


The accompanying notes are an integral part of these financial statements.

F-2F-1

Huaneng Power International, Inc.
Consolidated Balance SheetsStatements of Comprehensive Income (Continued)
For the years ended 31 December 2016, 2015 and 2014
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB, except per share data)


     For the year ended 31 December 
  Note 2016  2015  2014 
    RMB  RMB  RMB 
            
Other comprehensive income/(loss), net of tax           
Items that may be reclassified subsequently to profit or loss:           
Fair value changes of available-for-sale financial asset    (148,041)  558,261   840,289 
Gain on disposal of available-for-sale financial asset reclassified to profit or loss
    (741,648)  -   - 
Share of other comprehensive (loss)/income of investees accounted for under the equity method    (180,572)  678,793   87,579 
Effective portion of cash flow hedges    1,015,103   51,922   (789,915)
Translation differences of the financial statements of foreign operations    540,442   (133,116)  (377,889)
Other comprehensive income/(loss), net of tax    485,284   1,155,860   (239,936)
Total comprehensive income    10,833,271   18,414,967   13,322,436 
Net profit attributable to:              
- Equity holders of the Company    8,520,427   13,651,933   10,757,317 
- Non-controlling interests    1,827,560   3,607,174   2,805,055 
     10,347,987   17,259,107   13,562,372 
Total comprehensive income attributable to:              
- Equity holders of the Company    9,005,227   14,807,889   10,517,694 
- Non-controlling interests    1,828,044   3,607,078   2,804,742 
     10,833,271   18,414,967   13,322,436 
Earnings per share attributable to the equity holders of the Company (expressed in RMB per share)              
- Basic and diluted 33  0.56   0.94   0.76 


The accompanying notes are an integral part of these financial statements.
F-2
Huaneng Power International, Inc.
Consolidated Statements of Financial Position
As at 31 December 20142016 and 20132015
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)


    As at 31 December     As at 31 December 
 Note  2014  2013  Note  2016  2015 
    RMB  RMB     RMB  RMB 
                  
ASSETS                  
                  
Non-current assets                  
Property, plant and equipment  7   188,379,057   181,415,181   7   223,061,809   219,673,070 
Investments in associates and joint ventures  8   17,626,910   16,678,694   8   19,632,113   19,745,192 
Available-for-sale financial assets  10   4,333,377   3,111,164   10   3,406,032   5,077,863 
Land use rights  11   4,953,844   4,491,285   11   8,456,347   8,313,766 
Power generation licenses  12   3,720,959   3,837,169 
Power generation license  12   3,849,199   3,679,175 
Mining rights      1,922,655   1,922,655   13   1,646,271   1,646,271 
Deferred income tax assets  30   884,274   652,358   30   1,263,957   1,064,391 
Derivative financial assets  13   40,598   14,245   14   99,721   45,044 
Goodwill  14   11,725,555   12,758,031   15   12,135,729   11,677,182 
Other non-current assets  15   3,719,255   3,165,067   16   4,321,945   4,378,997 
            
Total non-current assets      237,306,484   228,045,849       277,873,123   275,300,951 
            
Current assets                        
Inventories  16   6,702,274   6,469,026   17   6,879,143   5,422,732 
Other receivables and assets  17   3,411,720   2,072,981   18   5,533,770   4,087,989 
Accounts receivable  18   14,881,963   15,562,121   19   16,393,471   16,377,401 
Derivative financial assets  13   261,135   91,727   14   278,602   139,468 
Bank balances and cash  34   12,608,192   9,433,385   34   7,881,630   7,537,813 
Assets held for sale  19   -   557,671 
            
Total current assets      37,865,284   34,186,911       36,966,616   33,565,403 
            
Total assets      275,171,768   262,232,760       314,839,739   308,866,354 


The accompanying notes are an integral part of these financial statements.

F-3

Huaneng Power International, Inc.
Consolidated Balance Sheets (continued)Statements of Financial Position (Continued)
As at 31 December 20142016 and 20132015
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)


    As at 31 December     As at 31 December 
 Note  2014  2013  Note  2016  2015 
    RMB  RMB     RMB  RMB 
                  
EQUITY AND LIABILITIES                  
         
                  
Capital and reserves attributable to equity holders of the Company                  
Share capital  20   14,420,383   14,055,383   20   15,200,383   15,200,383 
Capital surplus      19,622,199   17,347,068       24,760,331   24,815,489 
Surplus reserves  21   7,196,349   7,085,454   21   8,140,030   8,140,030 
Currency translation differences      (1,194,819)  (817,243)      (787,881)  (1,327,839)
Retained earnings                  38,690,132   37,313,885 
-Proposed dividend  22   5,479,746   5,341,046 
-Others      24,605,633   19,438,957 
            
      70,129,491   62,450,665       86,002,995   84,141,948 
Non-controlling interests     14,653,215   12,742,309       16,183,742   17,551,741 
Total equity      84,782,706   75,192,974       102,186,737   101,693,689 
            
Non-current liabilities                        
Long-term loans  23   57,638,458   60,513,671   23   64,990,361   66,028,023 
Long-term bonds  24   22,725,535   23,726,550   24   12,182,971   11,261,322 
Deferred income tax liabilities  30   1,810,755   2,032,417   30   2,262,752   2,494,143 
Derivative financial liabilities  13   649,513   383,405   14   201,169   430,089 
Other non-current liabilities  25   2,718,680   1,404,898   25   2,819,498   3,122,455 
            
Total non-current liabilities      85,542,941   88,060,941       82,456,751   83,336,032 
            
Current liabilities                        
Accounts payable and other liabilities  26   27,035,864   25,321,374   26   28,325,227   26,185,764 
Taxes payable  27   1,858,024   1,647,925   27   1,089,105   2,071,471 
Dividends payable      431,681   166,270       1,575,180   788,895 
Salary and welfare payables      171,262   188,837       421,390   313,284 
Derivative financial liabilities  13   832,727   43,591   14   133,569   874,852 
Short-term bonds  28   18,244,806   15,135,024   28   27,311,103   19,347,706 
Short-term loans  29   43,529,004   37,937,046   29   57,668,874   49,883,489 
Current portion of long-term loans  23   7,392,433   12,796,956   23   9,560,885   12,351,205 
Current portion of long-term bonds  24   5,020,760   5,690,650   24   3,294,736   11,480,661 
Current portion of other non-current liabilities  25   329,560   -   25   816,182   539,306 
Liabilities held for sale  19   -   51,172 
            
Total current liabilities      104,846,121   98,978,845       130,196,251   123,836,633 
            
Total liabilities      190,389,062   187,039,786       212,653,002   207,172,665 
            
            
Total equity and liabilities      275,171,768   262,232,760       314,839,739   308,866,354 

These financial statements were approved for issue by the Board of Directors on 2421 March 20152017 and were signed on its behalf.


The accompanying notes are an integral part of these financial statements.

F-4
Huaneng Power International, Inc.
Consolidated StatementStatements of Changes in Equity
For the years ended 31 December 2014, 20132016, 2015 and 20122014
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

  Attributable to equity holders of the Company       
     Capital surplus                   
  Share capital  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserves  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
Balance as at 1 January 2014  14,055,383   16,233,589   (301,194)  351,251   1,063,422   17,347,068   7,085,454   (817,243)  24,780,003   62,450,665   12,742,309   75,192,974 
Profit for the year ended 31 December 2014  -   -   -   -   -   -   -   -   10,757,317   10,757,317   2,805,055   13,562,372 
Other comprehensive income/ (loss):                                                
Fair value changes of available-for-sale financial asset - gross  -   -   -   1,120,385   -   1,120,385   -   -   -   1,120,385   -   1,120,385 
Fair value changes of available-for-sale financial asset - tax  -   -   -   (280,096)  -   (280,096)  -   -   -   (280,096)  -   (280,096)
Shares of other comprehensive income of investees accounted for under the equity method - gross  -   -   -   116,972   -   116,972   -   -   -   116,972   -   116,972 
Shares of other comprehensive income of investees accounted for under the equity method - tax  -   -   -   (29,393)  -   (29,393)  -   -   -   (29,393)  -   (29,393)
Changes in fair value of effective portion of cash flow hedges - gross  -   -   (1,479,632)  -   -   (1,479,632)  -   -   -   (1,479,632)  -   (1,479,632)
Changes in fair value of effective portion of cash flow hedges - tax  -   -   254,590   -   -   254,590   -   -   -   254,590   -   254,590 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   371,725   -   -   371,725   -   -   -   371,725   -   371,725 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   (63,193)  -   -   (63,193)  -   -   -   (63,193)  -   (63,193)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   (51,772)  -   -   (51,772)  -   -   -   (51,772)  -   (51,772)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - tax  -   -   8,801   -   -   8,801   -   -   -   8,801   -   8,801 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   209,652   -   -   209,652   -   -   -   209,652   -   209,652 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (40,086)  -   -   (40,086)  -   -   -   (40,086)  -   (40,086)
Currency translation differences  -   -   -   -   -   -   -   (377,576)  -   (377,576)  (313)  (377,889)
                                                 
Total comprehensive (loss)/income for the year ended 31 December 2014  -   -   (789,915)  927,868   -   137,953   -   (377,576)  10,757,317   10,517,694   2,804,742   13,322,436 
Dividends relating to 2013  -   -   -   -   -   -   -   -   (5,341,046)  (5,341,046)  (1,739,740)  (7,080,786)
Issuance of new H shares, net of issuance expenses  365,000   2,088,986   -   -   -   2,088,986   -   -   -   2,453,986   -   2,453,986 
Capital injections from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   606,719   606,719 
Appropriation of surplus reserve  -   -   -   -   -   -   110,895   -   (110,895)  -   -   - 
Acquisitions of a subsidiary  -   -   -   -   -   -   -   -   -   -   2,631   2,631 
Disposal of a subsidiary  -   -   -   -   -   -   -   -   -   -   (99,958)  (99,958)
Disposal of non-controlling interests of a subsidiary  -   -   -   -   48,192   48,192   -   -   -   48,192   336,512   384,704 
                                                 
Balance as at 31 December 2014  14,420,383   18,322,575   (1,091,109)  1,279,119   1,111,614   19,622,199   7,196,349   (1,194,819)  30,085,379   70,129,491   14,653,215   84,782,706 

  Attributable to equity holders of the Company       
     Capital surplus                   
  Share capital  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserves  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
                                     
Balance as at 1 January 2012  14,055,383   16,780,924   (393,710)  358,398   1,070,883   17,816,495   7,013,849   (570,973)  12,568,175   50,882,929   8,674,824   59,557,753 
Profit for the year ended 31 December 2012  -   -   -   -   -   -   -   -   5,512,454   5,512,454   853,961   6,366,415 
Other comprehensive income/(loss):                                                
Fair value changes from available-for-sale financial asset - gross  -   -   -   131,355   -   131,355   -   -   -   131,355   -   131,355 
Fair value changes from available-for-sale financial asset - tax  -   -   -   (32,839)  -   (32,839)  -   -   -   (32,839)  -   (32,839)
Shares of other comprehensive income/(loss) of investees accounted for under the equity method - gross  -   -   -   48,083   (5,992)  42,091   -   -   -   42,091   -   42,091 
Shares of other comprehensive income/(loss) of investees accounted for under the equity method - tax  -   -   -   (12,021)  -   (12,021)  -   -   -   (12,021)  -   (12,021)
Changes in fair value of effective portion of cash flow hedges  - gross  -   -   (474,555)  -   -   (474,555)  -   -   -   (474,555)  -   (474,555)
Changes in fair value of effective portion of cash flow hedges - tax  -   -   86,086   -   -   86,086   -   -   -   86,086   -   86,086 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   (243,312)  -   -   (243,312)  -   -   -   (243,312)  -   (243,312)
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   41,363   -   -   41,363   -   -   -   41,363   -   41,363 
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   98,187   -   -   98,187   -   -   -   98,187   -   98,187 
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - tax  -   -   (16,692)  -   -   (16,692)  -   -   -   (16,692)  -   (16,692)
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   226,910   -   -   226,910   -   -   -   226,910   -   226,910 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (43,362)  -   -   (43,362)  -   -   -   (43,362)  -   (43,362)
Currency translation differences  -   -   -   -   -   -   -   535,036   -   535,036   1,195   536,231 
Total comprehensive (loss)/income for the year ended 31 December 2012  -   -   (325,375)  134,578   (5,992)  (196,789)  -   535,036   5,512,454   5,850,701   855,156   6,705,857 
Capital injection  -   100,840   -   -   -   100,840   -   -   -   100,840   -   100,840 
Transfer to surplus reserves  -   -   -   -   -   -   71,605   -   (71,605)  -   -   - 
Dividends relating to 2011  -   -   -   -   -   -   -   -   (702,867)  (702,867)  (363,803)  (1,066,670)
Net capital injection from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   665,333   665,333 
Other capital transaction with non-controlling interests  -   -   -   -   (1,469)  (1,469)  -   -   -   (1,469)  (1,302)  (2,771)
                                                 
Balance as at 31 December 2012  14,055,383   16,881,764   (719,085)  492,976   1,063,422   17,719,077   7,085,454   (35,937)  17,306,157   56,130,134   9,830,208   65,960,342 
                                                 

The accompanying notes are an integral part of these financial statements.

F-5

Huaneng Power International, Inc. and its subsidiaries
Consolidated Statements of Changes in Equity (continued)(Continued)
For the years ended 31 December 2014, 20132016, 2015 and 20122014
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

  Attributable to equity holders of the Company       
     Capital surplus                   
  Share capital  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserves  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
Balance as at 1 January 2015  14,420,383   18,322,575   (1,091,109)  1,279,119   1,111,614   19,622,199   7,196,349   (1,194,819)  30,085,379   70,129,491   14,653,215   84,782,706 
Profit for the year ended 31 December 2015  -   -   -   -   -   -   -   -   13,651,933   13,651,933   3,607,174   17,259,107 
Other comprehensive income/(loss):                                                
Fair value changes of available-for-sale financial asset - gross  -   -   -   744,348   -   744,348   -   -   -   744,348   -   744,348 
Fair value changes of available-for-sale financial asset - tax  -   -   -   (186,087)  -   (186,087)  -   -   -   (186,087)  -   (186,087)
Shares of other comprehensive income of investees accounted    for under the equity method - gross  -   -   -   904,007   -   904,007   -   -   -   904,007   -   904,007 
Shares of other comprehensive income of investees accounted    for under the equity method - tax  -   -   -   (225,214)  -   (225,214)  -   -   -   (225,214)  -   (225,214)
Changes in fair value of effective portion of cash flow hedges    - gross  -   -   (962,683)  -   -   (962,683)  -   -   -   (962,683)  -   (962,683)
Changes in fair value of effective portion of cash flow hedges - tax  -   -   166,135   -   -   166,135   -   -   -   166,135   -   166,135 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   1,003,778   -   -   1,003,778   -   -   -   1,003,778   -   1,003,778 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax   -   -   (170,642)  -   -   (170,642)  -   -   -   (170,642)  -   (170,642)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   (137,859)  -   -   (137,859)  -   -   -   (137,859)  -   (137,859)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - tax  -   -   23,436   -   -   23,436   -   -   -   23,436   -   23,436 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   161,124   -   -   161,124   -   -   -   161,124   -   161,124 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (31,367)  -   -   (31,367)  -   -   -   (31,367)  -   (31,367)
Currency translation differences  -   -   -   -   -   -   -   (133,020)  -   (133,020)  (96)  (133,116)
Total comprehensive income /(loss) for the year ended 31 December 2015  -   -   51,922   1,237,054   -   1,288,976   -   (133,020)  13,651,933   14,807,889   3,607,078   18,414,967 
Dividends relating to 2014  -   -   -   -   -   -   -   -   (5,479,746)  (5,479,746)  (3,285,330)  (8,765,076)
Issuance of new H shares, net of issuance expenses (Note 20)  780,000   3,904,314   -   -   -   3,904,314   -   -   -   4,684,314   -   4,684,314 
Capital injection from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   623,107   623,107 
Transfer to surplus reserve  -   -   -   -   -   -   943,681   -   (943,681)  -   -   - 
Business combinations (Note 39)  -   -   -   -   -   -   -   -   -   -   1,934,865   1,934,865 
Others  -   -   -   -   -   -   -   -   -   -   18,806   18,806 
                                                 
Balance as at 31 December 2015  15,200,383   22,226,889   (1,039,187)  2,516,173   1,111,614   24,815,489   8,140,030   (1,327,839)  37,313,885   84,141,948   17,551,741   101,693,689 

  Attributable to equity holders of the Company       
     Capital surplus                   
  Share capital  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserves  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
                                     
Balance as at 1 January 2013  14,055,383   16,881,764   (719,085)  492,976   1,063,422   17,719,077   7,085,454   (35,937)  17,306,157   56,130,134   9,830,208   65,960,342 
Profit for the year ended 31 December 2013  -   -   -   -   -   -   -   -   10,426,024   10,426,024   2,473,994   12,900,018 
Other comprehensive (loss)/income:                                                
Fair value changes from available-for-sale financial asset - gross  -   -   -   (141,658)  -   (141,658)  -   -   -   (141,658)  -   (141,658)
Fair value changes from available-for-sale financial asset - tax  -   -   -   35,414   -   35,414   -   -   -   35,414   -   35,414 
Shares of other comprehensive loss of investees accounted for under the equity method - gross  -   -   -   (47,236)  -   (47,236)  -   -   -   (47,236)  -   (47,236)
Shares of other comprehensive loss of investees accounted for under the equity method - tax  -   -   -   11,755   -   11,755   -   -   -   11,755   -   11,755 
Changes in fair value of effective portion of cash flow hedges - gross  -   -   303,472   -   -   303,472   -   -   -   303,472   -   303,472 
Changes in fair value of effective portion of cash flow hedges - tax  -   -   (54,371)  -   -   (54,371)  -   -   -   (54,371)  -   (54,371)
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   7,116   -   -   7,116   -   -   -   7,116   -   7,116 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   (1,210)  -   -   (1,210)  -   -   -   (1,210)  -   (1,210)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange loss and bank charges, net - gross  -   -   (1,759)  -   -   (1,759)  -   -   -   (1,759)  -   (1,759)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange loss and bank charges, net - tax  -   -   299   -   -   299   -   -   -   299   -   299 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   203,673   -   -   203,673   -   -   -   203,673   -   203,673 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (39,329)  -   -   (39,329)  -   -   -   (39,329)  -   (39,329)
Currency translation differences  -   -   -   -   -   -   -   (781,306)  -   (781,306)  (757)  (782,063)
                                                 
Total comprehensive (loss)/income for the year ended 31 December 2013  -   -   417,891   (141,725)  -   276,166   -   (781,306)  10,426,024   9,920,884   2,473,237   12,394,121 
Dividends relating to 2012  -   -   -   -   -   -   -   -   (2,951,631)  (2,951,631)  (635,307)  (3,586,938)
Capital injections from non-controlling interests of subsidiaries  -   40,005   -   -   -   40,005   -   -   -   40,005   828,220   868,225 
Acquisitions of subsidiaries (Note 39)
  -   -   -   -   -   -   -   -   -   -   254,750   254,750 
Acquisitions of non-controlling interests  -   -   -   -   -   -   -   -   (556)  (556)  (8,799)  (9,355)
Others*  -   (688,180)  -   -   -   (688,180)  -   -   9   (688,171)  -   (688,171)
                                                 
Balance as at 31 December 2013  14,055,383   16,233,589   (301,194)  351,251   1,063,422   17,347,068   7,085,454   (817,243)  24,780,003   62,450,665   12,742,309   75,192,974 
                                                 

*Others mainly represented state-owned fund allocated from government budget received from the Ministry of Finance of PRC through China Huaneng Group (“国有资本经营预算资金”) of approximately RMB640 million in previous years, which was repaid to China Huaneng Group in 2013 and subsequently lent to the Company as an entrusted loan pursuant to relevant regulation in the PRC.

The accompanying notes are an integral part of these financial statements.

F-6

Huaneng Power International, Inc. and its subsidiaries
Consolidated Statements of Changes in Equity (continued)(Continued)
For the years ended 31 December 2014, 20132016, 2015 and 20122014
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

  Attributable to equity holders of the Company       
     Capital surplus                   
  Share capital  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserves  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
                                     
Balance as at 1 January 2014  14,055,383   16,233,589   (301,194)  351,251   1,063,422   17,347,068   7,085,454   (817,243)  24,780,003   62,450,665   12,742,309   75,192,974 
Profit for the year ended 31 December 2014  -   -   -   -   -   -   -   -   10,757,317   10,757,317   2,805,055   13,562,372 
Other comprehensive (loss)/ income:                                                
Fair value changes from available-for-sale financial asset - gross  -   -   -   1,120,385   -   1,120,385   -   -   -   1,120,385   -   1,120,385 
Fair value changes from available-for-sale financial asset - tax  -   -   -   (280,096)  -   (280,096)  -   -   -   (280,096)  -   (280,096)
Shares of other comprehensive income of investees accounted for under the equity method - gross  -   -   -   116,972   -   116,972   -   -   -   116,972   -   116,972 
Shares of other comprehensive income of investees accounted for under the equity method - tax  -   -   -   (29,393)  -   (29,393)  -   -   -   (29,393)  -   (29,393)
Changes in fair value of effective portion of cash flow hedges - gross  -   -   (1,479,632)  -   -   (1,479,632)  -   -   -   (1,479,632)  -   (1,479,632)
Changes in fair value of effective portion of cash flow hedges - tax  -   -   254,590   -   -   254,590   -   -   -   254,590   -   254,590 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   371,725   -   -   371,725   -   -   -   371,725   -   371,725 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   (63,193)  -   -   (63,193)  -   -   -   (63,193)  -   (63,193)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange loss and bank charges, net - gross  -   -   (51,772)  -   -   (51,772)  -   -   -   (51,772)  -   (51,772)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange loss and bank charges, net - tax  -   -   8,801   -   -   8,801   -   -   -   8,801   -   8,801 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   209,652   -   -   209,652   -   -   -   209,652   -   209,652 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (40,086)  -   -   (40,086)  -   -   -   (40,086)  -   (40,086)
Currency translation differences  -   -   -   -   -   -   -   (377,576)  -   (377,576)  (313)  (377,889)
                                                 
Total comprehensive (loss)/ income for the year ended 31 December 2014  -   -   (789,915)  927,868   -   137,953   -   (377,576)  10,757,317   10,517,694   2,804,742   13,322,436 
Dividends relating to 2013 (Note 22)  -   -   -   -   -   -   -   -   (5,341,046)  (5,341,046)  (1,739,740)  (7,080,786)
Issuance of new H shares, net of issuance expenses (Note 20)  365,000   2,088,986   -   -   -   2,088,986   -   -   -   2,453,986   -   2,453,986 
Capital injections from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   606,719   606,719 
Appropriation of surplus reserve (Note 21)  -   -   -   -   -   -   110,895   -   (110,895)  -   -   - 
Acquisitions of subsidiaries (Note 39)
  -   -   -   -   -   -   -   -   -   -   2,631   2,631 
Disposal of a subsidiary (Note 19)  -   -   -   -   -   -   -   -   -   -   (99,958)  (99,958)
Disposal of non-controlling interests of a subsidiary (Note 19)  -   -   -   -   48,192   48,192   -   -   -   48,192   336,512   384,704 
                                                 
Balance as at 31 December 2014  14,420,383   18,322,575   (1,091,109)  1,279,119   1,111,614   19,622,199   7,196,349   (1,194,819)  30,085,379   70,129,491   14,653,215   84,782,706 
                                                 
  Attributable to equity holders of the Company       
     Capital surplus                   
  Share capital  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserves  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
Balance as at 1 January 2016  15,200,383   22,226,889   (1,039,187)  2,516,173   1,111,614   24,815,489   8,140,030   (1,327,839)  37,313,885   84,141,948   17,551,741   101,693,689 
Profit for the year ended 31 December 2016  -   -   -   -   -   -   -   -   8,520,427   8,520,427   1,827,560   10,347,987 
Other comprehensive income/(loss):                                                
Fair value changes of available-for-sale financial asset - gross  -   -   -   (197,529)  -   (197,529)  -   -   -   (197,529)  -   (197,529)
Gain on disposal of available-for-sale financial asset reclassified to profit or loss - gross  -   -   -   (988,865)  -   (988,865)  -   -   -   (988,865)  -   (988,865)
Fair value changes of and gain on disposal of available-for-sale financial asset - tax  -   -   -   296,705   -   296,705   -   -   -   296,705   -   296,705 
Shares of other comprehensive income of investees- accounted for under the equity method - gross  -   -   -   (242,217)  -   (242,217)  -   -   -   (242,217)  -   (242,217)
Shares of other comprehensive income of investees- accounted for under the equity method - tax  -   -   -   61,645   -   61,645   -   -   -   61,645   -   61,645 
Changes in fair value of effective portion of cash flow hedges - gross  -   -   574,455   -   -   574,455   -   -   -   574,455   -   574,455 
Changes in fair value of effective portion of cash flow hedges - tax  -   -   (95,407)  -   -   (95,407)  -   -   -   (95,407)  -   (95,407)
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   603,527   -   -   603,527   -   -   -   603,527   -   603,527 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   (102,600)  -   -   (102,600)  -   -   -   (102,600)  -   (102,600)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   (55,838)  -   -   (55,838)  -   -   -   (55,838)  -   (55,838)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - tax  -   -   9,492   -   -   9,492   -   -   -   9,492   -   9,492 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   101,889   -   -   101,889   -   -   -   101,889   -   101,889 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (20,415)  -   -   (20,415)  -   -   -   (20,415)  -   (20,415)
Currency translation differences  -   -   -   -   -   -   -   539,958   -   539,958   484   540,442 
Total comprehensive income/(loss) for the year ended 31 December 2016  -   -   1,015,103   (1,070,261)  -   (55,158)  -   539,958   8,520,427   9,005,227   1,828,044   10,833,271 
Dividends relating to 2015 (Note 22)  -   -   -   -   -   -   -   -   (7,144,180)  (7,144,180)  (3,481,663)  (10,625,843)
Capital injection from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   285,620   285,620 
Balance as at 31 December 2016  15,200,383   22,226,889   (24,084)  1,445,912   1,111,614   24,760,331   8,140,030   (787,881)  38,690,132   86,002,995   16,183,742   102,186,737 


The accompanying notes are an integral part of these financial statements.

F-7

Huaneng Power International, Inc.
Consolidated Statements of Cash Flows
For the years ended 31 December 2014, 20132016, 2015 and 20122014
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)


 For the year ended 31 December  For the year ended 31 December 
 2014  2013  2012  2016  2015  2014 
 RMB  RMB  RMB  RMB  RMB  RMB 
                  
CASH FLOWS FROM OPERATING ACTIVITIES                  
Profit before income tax expense  19,049,580   17,422,689   8,876,785   13,813,138   22,958,050   19,049,580 
Adjustments to reconcile profit before income tax expense to net cash provided by operating activities:                        
Depreciation  11,646,683   11,293,522   11,032,748   14,815,620   14,411,632   11,646,683 
Provision for impairment loss on property, plant and equipment  1,358,522   472,921   903,463   1,063,735   1,047,641   1,358,522 
Provision for impairment loss on investment in an associate  120,050   -   -   -   178,131   120,050 
Provision for impairment loss on goodwill  641,061   980,513   107,735   -   1,105,649   641,061 
Provision for impairment loss on land use right  -   6,804   - 
Provision for impairment loss on mining rights  -   760,296   - 
Provision for impairment loss on land use rights  51,981   -   - 
Amortization of land use rights  133,069   139,609   135,140   225,707   213,206   133,069 
Amortization of other non-current assets  99,528   112,384   86,275   121,388   92,775   99,528 
Amortization of employee housing subsidies  940   940   2,247   866   940   940 
Recognition/ (reversal) of provision for doubtful accounts  4,577   (2,610)  (10,310)
(Reversal)/ recognition of provision for inventory obsolescence  (2,647)  (824)  12,155 
(Gain)/loss on fair value changes of financial assets/liabilities  (42,538)  5,701   1,171 
Recognition/(reversal) of provision for doubtful accounts  89,498   (3,392)  4,577 
(Reversal)/recognition of provision for inventory obsolescence  (256)  1,828   (2,647)
Loss /(gain) on fair value changes of financial assets/liabilities  12,986   16,742   (42,538)
Other investment income  (80,580)  (224,908)  (187,131)  (1,070,034)  (115,238)  (80,580)
Net loss on disposals of property, plant and equipment  427,034   897,222   252,741 
Unrealized exchange gain, net  (34,769)  (107,249)  (5,085)
Net loss on disposals of non-current assets  590,049   438,321   427,034 
Unrealized exchange loss/ (gain), net  195,055   166,148   (34,769)
Share of profits less losses of associates and joint ventures  (1,315,876)  (615,083)  (622,358)  (1,298,889)  (1,525,975)  (1,315,876)
Interest income  (159,550)  (170,723)  (175,402)  (147,063)  (160,723)  (159,550)
Interest expense  7,814,114   7,787,472   8,897,097   6,817,526   7,945,734   7,814,114 
Others  (217,829)  106,484   45,136   (213,089)  (89,332)  (217,829)
Changes in working capital:                        
Inventories  (195,853)  517,837   479,071   (1,270,582)  2,106,821   (195,853)
Other receivables and assets  (64,288)  992,322   329,263   (20,810)  72,925   (64,288)
Accounts receivable  466,878   (846,214)  303,586   (838,272)  (175,429)  466,878 
Restricted cash  (243,624)  (7,091)  (1,877)  (11,566)  499,899   (243,624)
Accounts payable and other liabilities  (1,417,668)  4,598,219   (3,222,999)  1,811,681   (2,932,761)  (1,417,668)
Taxes payable  1,245,941   1,442,845   1,926,801   1,279,505   1,366,209   1,245,941 
Salary and welfare payables  (17,566)  (26,492)  (34,835)  100,353   75,803   (17,566)
Interest received  97,374   100,278   109,635   84,806   102,813   97,374 
Income tax expense paid  (5,992,496)  (4,637,139)  (2,312,970)  (4,692,509)  (6,196,005)  (5,992,496)
            
Net cash provided by operating activities  33,320,067   40,239,429   26,928,082   31,510,824   42,362,708   33,320,067 
            


The accompanying notes are an integral part of these financial statements.

F-8

Huaneng Power International, Inc.
Consolidated Statements of Cash Flows (continued)(Continued)
For the years ended 31 December 2014, 20132016, 2015 and 20122014
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)


  For the year ended 31 December  For the year ended 31 December 
  2014  2013  2012  Note2016  2015  2014 
  RMB  RMB  RMB  RMB  RMB  RMB 
                   
CASH FLOWS FROM INVESTING ACTIVITIES                   
Payment for the purchase of property, plant and equipment   (19,858,216)  (17,691,382)  (15,474,614)  (20,144,903)  (24,191,285)  (19,858,216)
Proceeds from disposal of property, plant and equipment   70,712   166,459   949,469   144,346   109,013   70,712 
Prepayments of land use rights   (500,100)  (5,947)  (81,382)  (89,430)  (136,045)  (500,100)
Payment for the purchase of other non-current assets   (21,576)  (32,601)  (51,615)  (50,653)  (6,981)  (21,576)
Cash dividends received   565,334   408,166   728,754   1,057,642   937,189   565,334 
Payment for investment in associates and joint ventures   (266,877)  (2,017,853)  (947,574)  (276,118)  (889,780)  (266,877)
Cash paid for acquiring available-for-sale financial assets   -   (200,000)  (500,000)
Cash consideration paid for acquisitions of subsidiaries, net of cash acquired   (17,991)  36,599   (149,048)
Cash received from disposal of trading securities   -   102,784   - 
Cash consideration paid for acquisition of subsidiaries, net of cash acquired 39 157,421   (8,887,882)  (17,991)
Cash received from disposal of available-for-sale financial assets  1,474,301   -   - 
Cash received from disposal of a subsidiary   503,809   6,199   -   -   -   503,809 
Short-term loan repayment from an associate   -   -   100,000 
Others   54,092   173,326   116,406   77,748   50,759   54,092 
             
Net cash used in investing activities   (19,470,813)  (19,054,250)  (15,309,604)  (17,649,646)  (33,015,012)  (19,470,813)
             


The accompanying notes are an integral part of these financial statements.

F-9

Huaneng Power International, Inc.
Consolidated Statements of Cash Flows (continued)(Continued)
For the years ended 31 December 2014, 20132016, 2015 and 20122014
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)


  For the year ended 31 December    For the year ended 31 December 
Note 2014  2013  2012  Note 2016  2015  2014 
  RMB  RMB  RMB   RMB  RMB  RMB 
                    
CASH FLOWS FROM FINANCING ACTIVITIES                    
Issuance of short-term bonds   17,971,000   24,950,000   34,930,000    32,982,340   18,980,000   17,971,000 
Repayments of short-term bonds   (15,000,000)  (45,000,000)  (11,000,000)   (25,000,000)  (18,000,000)  (15,000,000)
Proceeds from short-term loans   61,503,204   41,314,000   48,294,295    85,689,874   67,298,044   61,503,204 
Repayments of short-term loans   (55,896,200)  (30,869,290)  (64,832,425)   (77,904,489)  (62,600,955)  (55,896,200)
Proceeds from long-term loans   9,647,090   5,091,175   19,425,661    15,978,023   9,943,689   9,647,090 
Repayments of long-term loans   (17,522,953)  (12,889,078)  (32,483,848)   (20,702,421)  (12,799,719)  (17,522,953)
Issuance of long-term bonds   3,988,000   6,485,000   4,985,000    4,200,000   -   3,988,000 
Repayments of long-term bonds   (5,700,000)  -   -    (11,500,000)  (5,000,000)  (5,700,000)
Interest paid   (8,097,216)  (8,290,433)  (8,941,814)   (7,344,781)  (8,677,316)  (8,097,216)
Net proceeds from the issuance of new H shares   2,453,986   -   -    -   4,684,314   2,453,986 
Net capital injection from non-controlling interests of subsidiaries   606,719   868,225   665,333    285,620   623,107   606,719 
Government grants   188,406   274,472   266,949 
Dividends paid to shareholders of the Company   (5,341,046)  (2,951,631)  (702,867)   (7,206,220)  (5,535,655)  (5,341,046)
Dividends paid to non-controlling interests of subsidiaries   (1,474,329)  (539,876)  (460,607)   (2,695,378)  (2,954,194)  (1,474,329)
Proceeds from sales leaseback classified as finance lease   1,500,000   -   -    -   100,000   1,500,000 
Repayment of state-owned fund received from China Huaneng Group in prior years   -   (640,485)  - 
Cash received from disposal of non-controlling interests of a subsidiary   384,702   -   -    -   -   384,702 
Others   (105,543)  (42,167)  37,423    (384,418)  (201,974)  82,863 
             
Net cash used in financing activities   (10,894,180)  (22,240,088)  (9,816,900)   (13,601,850)  (14,140,659)  (10,894,180)
             
Effect of exchange rate fluctuations on cash held   (58,379)  (108,806)  151,027    72,923   32,846   (58,379)
             
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS   2,896,695   (1,163,715)  1,952,605 
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS   332,251   (4,760,117)  2,896,695 
Cash and cash equivalents as at beginning of the year   9,341,672   10,505,387   8,552,782    7,478,250   12,238,367   9,341,672 
CASH AND CASH EQUIVALENTS AS AT END OF THE YEAR34  12,238,367   9,341,672   10,505,387 34  7,810,501   7,478,250   12,238,367 
             


The accompanying notes are an integral part of these financial statements.

F-10

HUANENG POWER INTERNATIONAL, INC.
NOTES TO THE FINANCIAL STATEMENTS
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB unless otherwise stated)

1Company organization and principal activities

Huaneng Power International, Inc. (the “Company”) was incorporated in the People’s Republic of China (the “PRC”) as a Sino-foreign joint stock limited company on 30 June 1994. The registered address of the Company is Huaneng Building, 6 Fuxingmennei Street, Xicheng District, Beijing, the PRC. The Company and its subsidiaries are principally engaged in the generation and sale of electric power to the respective regional or provincial grid companies in the PRC and in the Republic of Singapore (“Singapore”). The Company conducts its business in Singapore through SinoSing Power Pte Ltd. (“SinoSing Power”) and its subsidiaries.

The directors consider Huaneng International Power Development Corporation (“HIPDC”) and China Huaneng Group (“Huaneng Group”) as the parent company and ultimate parent company of the Company, respectively. Both HIPDC and Huaneng Group are incorporated in the PRC. HIPDC does not produce financial statements available for public use.

2Principal accounting policies

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a)Basis of preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”) and the disclosure requirementrequirements of the Hong Kong Companies Ordinance, which for this financial year and the comparative period continue to be those of the predecessor Hong Kong Companies Ordinance (Cap. 32), in accordance with transitional and saving arrangements for Part 9 of the new Hong Kong Companies Ordinance (Cap. 622), “Accounts and Audit”, which are set out in sections 76 to 87 of Schedule 11 to that Ordinance. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets and derivative financial assets and liabilities.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company and its subsidiaries’ accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 4.

F-11
2Principal accounting policies (continued)

(a)
Basis of preparation (continued)

As at and for the year ended 31 December 2014,2016, a portion of the Company and its subsidiaries’ funding requirements for capital expenditures were satisfied by short-term financing. Consequently, as at 31 December 2014,2016, the Company and its subsidiaries have net current liabilities of approximately RMB67.0RMB93.2 billion. Taking into consideration of the expected operating cash flows of the Company and its subsidiaries and the undrawn available banking facilities of approximately RMB191.1RMB262.8 billion as at 31 December 2014,2016, the Company and its subsidiaries are expected to refinance certain of its short termshort-term loans and bonds and also to consider alternative sources of financing, where applicable and when needed. Therefore, the directors of the Company are of the opinion that the Company and its subsidiaries will be able to meet its liabilities as and when they fall due within the next twelve months and accordingly, these consolidated financial statements are prepared on a going concern basis.
F-11

Except as described below, the principal accounting policies adopted are consistent with those applied in the annual financial statements for the year ended 31 December 2013 described in those annual financial statements.
2Principal accounting policies (Continued)

(a)
Basis of preparation (Continued)

The CompanyIASB has issued a new standard and its subsidiaries have adopted the following newa number of amendments to standards and one interpretationIFRSs that are first effective for the current accounting period of the Company and its subsidiaries. None of these new standard or developments have had a material effect on how the Company and its subsidiaries’ results and financial position for the current or prior periods have been prepared or presented. The Company and its subsidiaries have not applied any new standard or interpretation that is not yet effective for current accounting period.

·
Amendments to IFRS 10, IFRS 12 and IAS 27, ‘Investment entities’. The amendments provide consolidation relief to those parents which qualify to be an investment entity as defined in the amended IFRS 10. Investment entities are required to measure their subsidiaries at fair value through profit or loss. These amendments do not have an impact on the consolidated financial statements as the Company and its subsidiaries do not qualify to be investment entities.

·
Amendments to IAS 32, ‘Financial instruments: Presentation – Offsetting financial assets and financial liabilities’ clarify the offsetting criteria in IAS 32 . The amendments do not have any material impact on the consolidated financial statements as they are consistent with the policies already adopted by the Company and its subsidiaries.

·
Amendments to IAS 36, ‘Impairment of Assets – Recoverable amount disclosures for non-financial assets’ modify the disclosure requirements for impaired non-financial assets. Among them, the amendments expand the disclosures required for an impaired asset or CGU whose recoverable amount is based on fair value less costs of disposal. The amendments do not have any material impact on the consolidated financial statements.

·
Amendments to IAS 39, ‘Financial Instruments: Recognition and Measurement - Novation of derivatives and continuation of hedge accounting’ provide relief from discontinuing hedge accounting when novation of a derivative designated as a hedging instrument meets certain criteria. The amendments do not have any material impact on the consolidated financial statements as the Company and its subsidiaries have not novated any of its derivatives.

·
IFRIC 21 ‘Levies’ provides guidance on when a liability to pay a levy imposed by a government should be recognized. The amendments do not have any material impact on the consolidated financial statements as the guidance is consistent with the Company and its subsidiaries’ existing accounting policies.

F-12

2Principal accounting policies (continued)

(b)Consolidation

The consolidated financial statements include the financial statements of the Company and all of its subsidiaries.

Subsidiaries are investees over which the Company and its subsidiaries have the power to exercise control. The Company and its subsidiaries control an entity when it is exposed, or have rights to variable returns from their involvement with the entity and have the ability to affect those returns through their power over the entity. WhenIn assessing whether the Company and its subsidiaries have power, only substantive rights (held by the Company and its subsidiaries and other parties) are considered.

Subsidiaries are fully consolidated from the date when control is transferred to the Company and its subsidiaries. They are de-consolidated from the date when control ceases. Intra-group balances, transactions and cash flows, and any unrealised income and expenses arising from intra-group transactions, are eliminated in full in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Company and its subsidiaries’ interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. The portion of the shareholders’ equity of the subsidiaries, which is not attributable directly or indirectly to the parent company, is separately presented as non-controlling interests in the shareholders’ equity in the consolidated financial statements.

When there is any inconsistency on the accounting policies or financial period adopted between subsidiaries and the Company, the financial statements of subsidiaries are adjusted according to the accounting policies or financial period adopted by the Company.
F-12

2Principal accounting policies (Continued)

(b)Consolidation (Continued)

(i)Business combinations

The acquisition method is used to account for the business combinations of the Company and its subsidiaries (including business combinationcombinations under common controls). The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Company and its subsidiaries. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Company and its subsidiaries recognize any non-controlling interests in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill (Note 2(i)). If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss.

F-13
2Principal accounting policies (continued)

(b)Consolidation (continued)

(ii)Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the equity owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

(iii)Associates and joint ventures

Associates are investees over which the Company and its subsidiaries have significant influence on the financial and operating decisions. A joint venture is an arrangement whereby the Company and its subsidiaries and other parties contractually agree to share control of the arrangement, and have rights to the net assets of the arrangement.

Investments in associates and joint ventures are initially recognized at cost and are subsequently measured using the equity method of accounting, unless it is classified as held for sale (or included in a disposal group that is classified as held for sale) (Note 2(p)). The excess of the initial investment cost over the proportionate share of the fair value of identifiable net assets of investee acquired is included in the initial investment cost (Note 2(i)). Any shortfall of the initial investment cost to the proportionate share of the fair value of identifiable net assets of investee acquired is recognized in current period profit or loss and long-term investment cost is adjusted accordingly.
F-13
2Principal accounting policies (Continued)

(b)Consolidation (Continued)

(iii)Associates and joint ventures (Continued)

When applying equity method, the Company and its subsidiaries adjust net profit or loss of the investees, including the fair value adjustments on the net identifiable assets of the associates and joint ventures and the adjustments to align with the accounting policies of the Company and the Company’s financial reporting periods. Current period investment income is then recognized based on the proportionate share of the Company and its subsidiaries in the investees’ net profit or loss. Net losses of investees are recognized to the extent of the carrying value of long-term equity investments and any other constituting long-term equity investments in investees that in substance form part of the investments in the investees. The Company and its subsidiaries continue to recognize investment losses and provision if they bear additional obligations which meet the recognition criteria.

The Company and its subsidiaries adjust the carrying amount of the investment and directly recognize into related other comprehensive income based on their proportionate share on the movements of the investees’ other comprehensive income except net profit or loss, given there is no change in shareholding ratio.

When the investees appropriate profit or declare dividends, the carrying value of long- termlong-term equity investments are reduced correspondingly by the proportionate share of the distribution.

F-14
2Principal accounting policies (continued)

(b)Consolidation (continued)

(iii)Associates and joint ventures (continued)

The Company and its subsidiaries determine at each reporting date whether there is any objective evidence that the investment in the associate or the joint venture is impaired. If this is the case, the Company and its subsidiaries calculate the amount of impairment as the difference between the recoverable amount of the associate or the joint venture and its carrying value and recognize the amount in ‘share of profit of associates and joint ventures’ in the consolidated statement of comprehensive income.

Profits or losses resulting from transactions between the Company and its subsidiaries and the associates and joint ventures are recognized in the Company and its subsidiaries’ financial statements only to the extent of the unrelated third party investor’s interests in the associates and joint ventures. Loss from transactions between the Company and its subsidiaries and the associates and joint ventures is fully recognized and not eliminated when there is evidence for asset impairment.

If an investment in an associate becomes an investment in a joint venture or vice versa, retained interest is not remeasured. Instead, the investment continues to be accounted for under the equity method.

Gains and losses arising from dilution of investments in associates and joint ventures are recognized in the consolidated statement of comprehensive income.

In the Company’s balance sheet,statement of financial position, investments in associates and joint ventures are stated at cost less provision for impairment losses (Note 2(j)) unless classified as held for sale (or included in a disposal group that is classified as held for sale) (Note 2(p)). Investment income from investments in associates and joint ventures is accounted for by the Company based on dividends received and receivable.
F-14
2Principal accounting policies (Continued)

(b)Consolidation (Continued)

(iii)Associates and joint ventures (Continued)

In all other cases, when the Company and its subsidiaries cease to have significant influence over an associate or joint control over a joint venture, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former investee at the date when significant influence or joint control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (Note 2(k)).

(c)Separate financial statements of the Company

Investments in subsidiaries are accounted for at cost less impairment unless classified as held for sale (or included in a disposal group that is classified as held for sale) (Note 2(p)). Cost also includes direct attributable costs of investment. Investment income is recognized when the subsidiaries declare dividend.

F-15
2Principal accounting policies (continued)

(d)Segment reporting

The Company and its subsidiaries determine the operating segment based on the internal organization structure, management requirement and internal reporting system for purposes of presenting reportable segment information.

An operating segment represents a component of the Company and its subsidiaries that meets all the conditions below: (i) the component earns revenue and incurs expenses in its daily operating activities; (ii) chief operating decision maker of the Company and its subsidiaries regularly reviews the operating results of the component in order to make decisions on allocating resources and assessing performance; (iii) the financial position, operating results, cash flows and other related financial information of the component are available. When the two or more operating segments exhibit similar economic characteristics and meet certain conditions, the Company and its subsidiaries combine them as one reportable segment.

(e)Foreign currency translation

(i)Functional and presentation currency

Items included in the financial statements of each of the Company and its subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in Renminbi (“RMB”), which is the Company’s functional and presentation currency.
F-15

2Principal accounting policies (Continued)

(e)Foreign currency translation (Continued)

(ii)Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rate on the transaction dates. On balance sheet date,As at the end of reporting period, foreign currency monetary items are translated into functional currency at the spot exchange rate on balance sheet date.as at the end of reporting period. Exchange differences are directly expensed in current period profit or loss unless they arises from foreign currency loans borrowed for purchasing or construction of qualifying assets which is eligible for capitalization or they arise from monetary items that qualify as hedging instruments in cash flow hedges which are recorded in other comprehensive income to the extent that the hedge is effective.

(iii)Foreign subsidiaries

The operating results and financial position of the foreign subsidiaries are translated into presentation currency as follows:

Asset and liability items in each balance sheetstatement of financial position of foreign operations are translated at the closing rates at the balance sheet date;end of reporting period; equity items excluding retained earnings are translated at the spot exchange rates at the date of the transactions. Income and expense items in the statement of comprehensive income of the foreign operations are translated at average exchange rates approximating the rate on transaction dates. All resulting translation differences are recognized in other comprehensive income.

F-16
2Principal accounting policies (continued)

(e)Foreign currency translation (continued)

(iii)Foreign subsidiaries (continued)

The cash flows denominated in foreign currencies and cash flows of overseas subsidiaries are translated at average exchange rates approximating the rates at the dates when cash flows incurred. The effect of the foreign currency translation on the cash and cash equivalents is presented in the statement of cash flows separately.

On the disposal of a foreign operation (that is, a disposal of the Company and its subsidiaries’ entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, a disposal involving loss of joint control over a joint ventures that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the equity holders of the Company are reclassified to profit or loss.

In the case of a partial disposal that does not result in the Company and its subsidiaries losing control over a subsidiary that includes a foreign operation, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognized in profit or loss. For all other partial disposals (that is, reductions in the Company and its subsidiaries’ ownership interest in associates or joint venture that includes a foreign operation that do not result in the Company and its subsidiaries losing significant influence or joint control), the proportionate share of the accumulated exchange difference is reclassified to profit or loss.

F-16

2Principal accounting policies (Continued)

(f)Property, plant and equipment

Property, plant and equipment consists of dam, port facilities, buildings, electric utility plant in service, transportation facilities, others and construction-in-progress (“CIP”). Property, plant and equipment acquired or constructed are initially recognized at cost and carried at the net value of cost less accumulated depreciation and accumulated impairment loss, unless classified as held for sale (or included in a disposal group that is classified as held for sale) (Note 2(p)).

Cost of CIP comprises construction expenditures, other expenditures necessary for the purpose of preparing the CIP for its intended use, and those borrowing costs incurred before the assets are ready for intended use that are eligible for capitalization. CIP is not depreciated until such time as the relevant asset is completed and ready for its intended use.

Subsequent costs about property, plant and equipment are included in the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and its subsidiaries and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. Other subsequent expenditures not qualifyingqualified for capitalization are charged in the current period profit or loss when they are incurred.

F-17

2Principal accounting policies (continued)

(f)Property, plant and equipment (continued)

Depreciation of property, plant and equipment is provided based on book value of the asset less estimated residual value over the estimated useful life using straight-line method. For those impaired property, plant and equipment, depreciation is provided based on book value after deducting impairment provision over the estimated useful life of the asset. The estimated useful lives are as follows:

Estimated useful lives

Estimated useful lives
Dam8 – 50 years
Port facilities20 – 40 years
Buildings8 – 30 years
Electric utility plant in service5 – 30 years
Transportation facilities8 – 27 years
Others5 – 14 years

Where parts of an item of property, plant and equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. At the end of each year, the Company and its subsidiaries review the estimated useful lives, residual values and the depreciation method of the property, plant and equipment and make adjustment when necessary.

Property, plant and equipment is derecognized when it is disposed of, or is not expected to bring economic benefit through use or disposal. The amount of disposal income arising from sale, transfer, disposal or write-off of the property, plant and equipment less book value and related tax expenses is recorded in ‘operating expenses – others’ in the statement of comprehensive income.

The carrying amount of property, plant and equipment is written down immediately to its recoverable amount when its carrying amount is greater than its recoverable amount (Note 2(j)).
F-17

2Principal accounting policies (Continued)

(g)Power generation license

The Company and its subsidiaries acquired the power generation license as part of the business combination with Tuas Power Ltd. (“Tuas Power”). The power generation license is initially recognized at fair value at the acquisition date. The license has an indefinite useful life and is not amortized. The assessment that the license has an indefinite useful life is based on the expected renewal of power generation license without significant restriction and cost, together with the consideration on related future cash flows generated and the expectation of continuous operations. It is tested annually for impairment and carried at cost less accumulated impairment loss. Useful life of the power generation license is reviewed by the Company and its subsidiaries each financial period to determine whether events and circumstances continue to support the indefinite useful life assessment.

F-18

2Principal accounting policies (continued)

(h)Mining rights

Mining rights are stated at cost less accumulated amortisationamortization and impairment losses (Note 2(j)) and are amortisedamortized based on the units of production method utilisingutilizing only recoverable coal reserves as the depletion base, unless the mining rights are classified as held for sale (or included in a disposal group that is classified as held for sale) (Note 2(p)).

(i)Goodwill

Goodwill arising from the acquisitions of subsidiaries, associates and joint ventures represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the Company and its subsidiaries’ share of the net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquiree at the date of acquisition.

Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to each cash-generating unit, or groups of cash generating units, that is expected to benefit from the synergies of the combination and is tested annually for impairment (Note 2(j)).

On disposal of a cash generating unit during the year, any attributable amount of purchased goodwill is included in the calculation of the profit or loss on disposal.

(j)Impairment of non-financial assets

The carrying amounts of property, plant and equipment, mining rights, intangible assets with definite useful lives, land use rights and long-term equity investments not accounted for as financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and indefinite-lived intangible assets are tested for impairment annually regardless of whether there are indications of impairment or more frequently if events or changes in circumstances indicate a potential impairment. An impairment loss is recognized if the carrying amount of an asset or cash-generating unit (“CGU”) exceeds its recoverable amount.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less cost to sell. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.
F-18
2Principal accounting policies (Continued)

(j)Impairment of non-financial assets (Continued)

Subject to an operating segment ceiling test, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes.

Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.

F-19

2Principal accounting policies (continued)

(j)Impairment of non-financial assets (continued)

Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs of disposal (if measurable) or value in use (if determinable).

An impairment loss in respect of goodwill is not reversed. Except for goodwill, all impaired non-financial assets are subject to review for possible reversal of impairment at each reporting date. A reversal of an impairment loss is limited to the asset’s carrying amount that would have been determined had no impairment loss been recognized in prior year. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized.

(k)Financial assets

Financial assets are classified in the following categories at initial recognition: at fair value through profit or loss, loans and receivables and available-for-sale. The classification depends on the intention and ability of the Company and its subsidiaries to hold the financial assets.

(i)Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading and designated upon initial recognition as at fair value through profit or loss. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months; otherwise, they are classified as non-current.

(ii)Loans and receivables

Loans and receivables refer to the non-derivative financial assets for which there is no quotation in the active market with fixed or determinable amount. They are included in current assets, except for maturities greater than 12 months after the balance sheet dateend of reporting period which are classified as non-current assets. Loans and receivables are primarily included in as ‘accounts receivable’, ‘other receivables and assets’, ‘loans to subsidiaries’ and ‘other non-current assets’ in the balance sheets.statement of financial position.
F-19

2Principal accounting policies (Continued)

(k)Financial assets (Continued)

(iii)Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories. They are included in current assets when management intends to dispose of the available-for-sale financial assets within 12 months of the balance sheet date.

F-20
end of reporting period.

2Principal accounting policies (continued)

(k)Financial assets (continued)

(iv)Recognition and measurement

Regular purchases and sales of financial assets are recognized at fair value initially on trade-date – the date on which the Company and its subsidiaries commit to purchase or sell the asset. Transaction costs relating to financial assets at fair value through profit or loss are directly expensed in the profit or loss as incurred. Transaction costs for other financial assets are included in the carrying amount of the asset at initial recognition. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and all risks and rewards related to the ownership of the financial assets have been transferred to the transferee.

Financial assets at fair value through profit or loss and available-for-sale are subsequently measured at fair value. When an active market exists for a financial instrument, fair value is determined based on quoted prices in the active market. When no active market exists, fair value is determined by using valuation techniques. When applying valuation techniques, the Company and its subsidiaries maximize the use of relevant observable inputs and minimize the use of unobservable inputs.

Changes in the fair value of financial assets at fair value through profit or loss are recorded in ‘gain/(loss) on fair value changes of financial assets/liabilities’.

Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost. Loans and receivables are carried at amortized cost using the effective interest method.

Except for impairment loss and translation differences on monetary financial assets, changes in the fair value of available-for-sale financial assets are recognized in other comprehensive income. When these financial assets are derecognized, the accumulated fair value adjustments recognized in equity are included in the statement of comprehensive income as ‘other investment income’. Dividends on available-for-sale financial assets are recorded in ‘other investment income’ when the right of the Company and its subsidiaries to receive payments is established.
F-20

2Principal accounting policies (Continued)

(k)Financial assets (Continued)

(v)Impairment of financial assets

Except for financial assets at fair value through profit or loss, the Company and its subsidiaries perform assessment on the book value of financial assets at the balance sheet date.end of reporting period. Provision for impairment is made when there is objective evidence showing that a financial asset is impaired.

For investments in subsidiaries, associates and joint ventures, the impairment loss is measured by comparing the recoverable amount of the investment with its carrying amount. The impairment loss is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.

F-21
2Principal accounting policies (continued)

(k)Financial assets (continued)

(v)Impairment of financial assets (continued)

In the case of equity investments classified as available for sale, a significant or prolonged decline in the fair value of the investment below its cost is evidence that the assets are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss, measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss, is removed from equity and recognized in profit or loss. Impairment losses recognized in the profit or loss on equity instruments are not reversed through the profit or loss.

When financial assets carried at amortized cost are impaired, the carrying amount of the financial assets is reduced to the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The impaired amount is recognized as assets impairment loss in the current period. If there is objective evidence that the value of the financial assets has recovered as a result of objective changes in circumstances occurring after the impairment loss was originally recognized, the originally recognized impairment loss is reversed through profit or loss. For the impairment test of receivables, please refer to Note 2(l).

(vi)Derivative financial instruments and hedging activities

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Gain or loss arising from subsequent change in the fair value of derivative financial instruments is recognized in profit or loss except for the effective portions of gain or loss on the derivative financial instruments designated as cash flow hedges which are recognized directly in other comprehensive income. Cash flow hedge represents a hedge against the exposure to variability in cash flows, which such cash flow is originated from a particular risk associated with highly probable forecast transactions and variable rate borrowings and which could affect the statement of comprehensive income.

F-21

2Principal accounting policies (Continued)

(k)Financial assets (Continued)

(vi)Derivative financial instruments and hedging activities (Continued)

The hedged items of cash flow hedge are the designated items with respect to the risks associated with future cash flow change resulting from variability in cash flows of a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk of a committed future transaction. Hedging instruments are designated derivative for cash flow hedge whose cash flows are expected to offset changes in the cash flows of a hedged item.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedge item is more than 12 months.

The Company and its subsidiaries document their assessments, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The Company and its subsidiaries apply ratio analysis method to evaluate the ongoing effectiveness of the cash flow hedge.

F-22
2Principal accounting policies (continued)

(k)Financial assets (continued)

(vi)Derivative financial instruments and hedging activities (continued)

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the statement of comprehensive income within ‘gain/(loss) on fair value changes of financial assets/liabilities’.

Amounts accumulated in equity are reclassified to the profit or loss in the periods when the hedged item affects profit or loss. The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognized in the statement of comprehensive income within ‘interest expense’. The gain or loss relating to the effective portion of exchange forward hedging foreign currency denominated payables is recognized in the statement of comprehensive income within ‘exchange gain/(loss) and bank charges, net’. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset. In the case where the Company and its subsidiaries expect all or a portion of net loss previously recognized directly in other comprehensive income will not be recovered in future financial periods, the irrecoverable portion will be reclassified into profit or loss.

When a hedging instrument expires or is sold, terminated or exercised or when a hedge no longer meets the criteria for hedge accounting, the Company and its subsidiaries will discontinue hedge accounting. Any cumulative gain or loss existing in equity at that time remains in equity and is subsequently recognized when the forecast transaction is ultimately recognized in the profit or loss. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the statement of comprehensive income within ‘gain/(loss) on fair value changes of financial assets/liabilities’.

F-22

2Principal accounting policies (Continued)

(l)Loans and receivables

Loans and receivables, which primarily include accounts receivable, other receivables, loan to subsidiaries and other non-current assets, are recognized initially at fair value. Loans and receivables are subsequently measured at amortized cost less provision for doubtful debts using the effective interest method.

The Company and its subsidiaries establish an allowance for impairment that represents its estimate of incurred losses in respect of receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets.

F-23
2Principal accounting policies (continued)

(l)
Loans and receivables (continued)

When there is objective evidence that the Company and its subsidiaries will not be able to collect all amounts due according to the original terms of the receivables, impairment test is performed and related provision for doubtful accounts is made based on the shortfall between carrying amounts and respective present value of estimated future cash flows. The carrying amounts of the receivables are reduced through the use of allowance accounts, and the amount of the provision is recognized in the statement of comprehensive income within ‘operating expenses – others’. When a receivable is uncollectible, it is written off against the allowance account for the receivable. Subsequent recoveries of amounts previously written off are credited against ‘operating expenses – others’ in the statement of comprehensive income.

(m)Inventories

Inventories include fuel for power generation, materials for repairs and maintenance and spare parts, and are stated at lower of cost and net realizable values.

Inventories are initially recorded at cost and are charged to fuel costs or repairs and maintenance, respectively when used, or capitalized to property, plant and equipment when installed, as appropriate, using weighted average cost basis. Cost of inventories includes costs of purchase and transportation costs.

When the forecast transaction that is hedged results in the recognition of the inventory, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the inventory.

Provision for inventory obsolescence is determined by the excess of cost over net realizable value. Net realizable values are determined based on the estimated selling price less estimated conversion costs during power generation, selling expenses and related taxes in the ordinary course of business.
F-23
2Principal accounting policies (Continued)

(n)Related parties

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or jointly control of the same third party; one party is controlled or jointly controlled by a third party and the other party is an associate or a joint venture of the same third party.

(o)Cash and cash equivalents

Cash and cash equivalents listed in the statement of cash flows represents cash in hand, call deposits held with banks and other financial institutions, and other short-term (3 months or less), highly-liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Bank overdrafts that are repayable on demand and form an integral part of the cash management are also included as a component of cash and cash equivalents for the purpose of the consolidated statement of cash flow.

F-24
2Principal accounting policies (continued)

(p)Non-current assets (or disposal group) held for sale

Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than  through continuing use.

Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets or deferred tax assets, which continue to be measured in accordance with the Company and its subsidiaries’ other accounting policies. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognized in profit or loss.

Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortized or depreciated, and any equity-accounted investee is no longer equity accounted.

(q)Borrowings

Borrowings are recognized initially at fair value less transaction costs and subsequently measured at amortized cost using the effective interest method. Borrowings are classified as current liabilities unless the Company and its subsidiaries have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.end of reporting period.

(r)(q)Borrowing costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets. The Capitalizationcapitalization of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or complete.

The amount of specific borrowing costs capitalized is net of the investment income on any temporary investment of the funds pending expenditure on the asset.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(s)(r)Payables

Payables primarily include accounts payable and other liabilities, and are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

F-25F-24

2Principal accounting policies (continued)(Continued)

(t)(s)Taxation

(i)Value-added tax (“VAT”)

The domestic power, heat and coal sales of the Company and its subsidiaries are subject to VAT. VAT payable is determined by applying 17% (or 13% on heat) on the taxable revenue after offsetting deductible input VAT of the period.

According to the relevant regulations of Ministry of Finance of PRC and State Administration of Taxation, certain pilot regions have been under the Pilot Program for the transformation from Business Tax to VAT since 1 January 2012 and all other regions since 1 August 2013 for specified industry. The applicable tax rate of VAT for the Company and its subsidiaries in respect of the lease of tangible movable properties, transportation industry and other modern services industry are 17%, 11% and 6%, respectively.

(ii)Business Tax (“BT”)

PortAccording to the relevant regulations of Ministry of Finance of PRC and transportationState Administration of Taxation, the transformation from Business Tax to VAT launched nation-wide from 1 May 2016 and all business tax taxpayers in the construction industry, real estate industry, financial industry, living services of the Company and its subsidiaries are subject to BT at thewere included. The applicable tax rate of 3% before the transformation became effective as statedVAT in Note 2(t)(i)respect of sectors including construction services, lease of immovables, sale of immovables and transfer of land use rights is 11%, and in respect of financial and living services is 6%.

(iii)(ii)Goods and service tax (“GST”)

The power sales of the subsidiaries in Singapore are subject to goods and service tax of the country where they operate. GST payable is determined by applying 7% on the taxable revenue after offsetting deductible GST of the period.

(iv)(iii)Current and deferred income tax

The income tax expense for the period comprises current and deferred income tax. Income tax expense is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Deferred income tax assets and liabilities are recognized based on the differences between tax bases of assets and liabilities and respective book values (temporary differences). For deductible tax losses or tax credit that can be brought forward in accordance with tax law requirements for deduction of taxable income in subsequent years, it is considered as temporary differences and related deferred income tax assets are recognized. No deferred income tax liability is recognized for temporary difference arising from initial recognition of goodwill. For those temporary differences arising from initial recognition of an asset or liability in a non-business combination transaction that affects neither accounting profit nor taxable profit (or deductible loss) at the time of the transaction, no deferred income tax asset and liability is recognized. The temporary differences relating to investments in subsidiaries to the extent that, in the case of taxable differences, the Company and its subsidiaries control the timing of the reversal and it is probable that the differences will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future.

F-26F-25

2Principal accounting policies (continued)(Continued)

(t)(s)
Taxation (continued)
(Continued)

(iv)(iii)Current and deferred income tax (continued)(Continued)

The Company and its subsidiaries recognize deferred income tax assets to the extent that it is probable that taxable profit will be available to offset the deductible temporary difference, deductible tax loss and tax credit.

OnAt the balance sheet date,end of reporting period, deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or liability is settled.

The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilised. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available.

Deferred income tax assets and deferred income tax liabilities are offset when meeting all the conditions below:

(1)The Company and its subsidiaries have the legal enforceable right to offset current income tax assets and current income tax liabilities;

(2)Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax authority of the Company and its subsidiaries.

(u)(t)Employee benefits

Employee benefits include all expenditures relating to the employees for their services. The Company and its subsidiaries recognize employee benefits as liabilities during the accounting period when employees render services and allocatesallocate to related cost of assets and expenses based on different beneficiaries.

In connection with pension obligations, the Company and its subsidiaries operate various defined contribution plans in accordance with the local conditions and practices in the countries and provinces in which they operate. A defined contribution plan is a pension plan under which the Company and its subsidiaries pay fixed contributions into a separate publicly administered pension insurance plan on mandatory and voluntary bases. The Company and its subsidiaries have no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The contributions are recognized as employee benefit when incurred. Prepaid contributions are recognized as assets to the extent that a cash refund or a reduction in the future payment is available.

F-27F-26
2Principal accounting policies (continued)(Continued)

(v)(u)Government grants

Government grants are recognized when the Company and its subsidiaries fulfill the conditions attachingattached to them and they are probable to be received. When government grants are received in the form of monetary assets, they are measured at the amount received or receivable. When the grant is in the form of non-monetary assets, it is measured at fair value. When fair value cannot be measured reliably, nominal amount is assigned.

Asset-related government grant is recognized as deferred income and is amortized evenly in profit or loss over the useful lives of related assets.

Income-related government grant that is used to compensate subsequent related expenses or losses of the Company and its subsidiaries are recognized as deferred income and recorded in the profit or loss when related expenses or losses incurred. When the grant is used to compensate expenses or losses that were already incurred, they are directly recognized in current period profit or loss.

(w)(v)Revenue and income recognition

Revenue and income are recognized based the following methods:

Revenue and income are recognized when it is probable that the economic benefits associated with the transaction will flow to the Company and its subsidiaries and the amount of the revenue and income can be measured reliably.

(i)Electricity sales revenue

Electricity sales revenue represents the fair value of the consideration received or receivable for electricity sold in the ordinary course of the activities of the Company and its subsidiaries (net of VAT or GST). Revenue is earned and recognized upon transmission of electricity to the customers or the power grid controlled and owned by the respective regional or provincial grid companies.

(ii)Coal sales revenue

Coal sales revenue represents the fair value of the consideration received or receivable for the sale of the coal in the ordinary course of the activities of the Company and its subsidiaries. Coal sales revenue is recognized when the coal is delivered to the customers and there is no unfulfilled obligation that could affect the customer’s acceptance of the coal.

(iii)Service revenue

Service revenue refers to amounts received from service of port loading, conveying and transportation. The Company and its subsidiaries recognize revenue when the relevant service is provided.

(iv)Dividend income

Dividend income from unlisted investments is recognized when the shareholder’s right to receive payment is established. Dividend income from listed investments is recognized when the share price of the investment goes ex-dividend.

F-28F-27

2Principal accounting policies (continued)(Continued)

(w)(v)
Revenue and income recognition (continued)
(Continued)

(v)Interest income

Interest income from deposits is recognized on a time proportion basis using effective interest method. Interest income from the finance lease is recognized on a basis that reflects a constant periodic rate of return on the net investment in the finance lease.

(x)(w)Leases

Leases where all the risks and rewards incidental to ownership of the assets are in substance transferred to the lessees are classified as finance leases. All other leases are operating leases.

(i)Operating leases (lessee)

Operating lease expenses are capitalized or expensed on a straight-line basis over the lease term.

The cost of acquiring land held under an operating lease is amortized on a straight-line basis over the period of the lease term.

(ii)Finance lease

The Company and its subsidiaries recognize the aggregate of the minimum lease receipts and the initial direct costs on the lease inception date as the receivable. The difference between the aggregate of the minimum lease receipts and the initial direct costs and sum of their respective present values is recognized as unrealized finance income. The Company and its subsidiaries adopt the effective interest method to allocate such unrealized finance income over the lease term. On balance sheet date,At the end of reporting period, the Company and its subsidiaries present the net amount of finance lease receivable after deducting any unrealized finance income in non-current assets and current assets, respectively.

Please refer to Note 2(k)(v) for impairment test on finance lease receivables.

Where the Company and its subsidiaries acquire the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments, of such assets are included in fixed assets and the corresponding liabilities, net of finance charges, are recorded as obligations under finance leases. Depreciation is provided at rates which write off the cost or valuation of the assets over the term of the relevant lease or, where it is likely the Company and its subsidiaries will obtain ownership of the asset, the life of the asset, as set out in noteNote 2(f). Impairment losses are accounted for in accordance with the accounting policy as set out in noteNote 2(j). Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred.

F-29F-28

2Principal accounting policies (continued)(Continued)

(y)(x)Purchase of electricity

The overseas subsidiary of the Company recognizes electricity purchase cost when it purchases the electricity and transmits to its customers.

(z)(y)Financial guarantee contracts

The Company issues financial guarantee contracts that transfer significant insurance risk. Financial guarantee contracts are those contracts that require the issuer to make specified payments to reimburse the holders for losses they incur because specified debtors fail to make payments when due in accordance with the original or modified terms of debt instruments. Where the Company issues a financial guarantee, the fair value of the guarantee is initially recognized as deferred income within accounts payable and other liabilities. The fair value of financial guarantees issued at the time of issuance is determined by reference to fees charged in an arm’s length transaction for similar services, when such information is obtainable, or is otherwise estimated by reference to interest rate differentials, by comparing the actual rates charged by lenders when the guarantee is made available with the estimated rates that lenders would have charged, had the guarantees not been available, where reliable estimates of such information can be made. Where consideration is received or receivable for the issuance of the guarantee, the consideration is recognized in accordance with the Company’s policies applicable to that category of asset. Where no such consideration is received or receivable, an immediate expense is recognized in profit or loss on initial recognition of any deferred income. The amount of the guarantee initially recognized as deferred income is amortized in profit or loss over the term of the guarantee as income from financial guarantees issued.

(aa)(z)Dividend distribution

Dividend distribution to the shareholders of the Company and its subsidiaries is recognized as a liability in the period when the dividend is approved in the shareholders’ meeting.

(ab)(aa)Contingencies

Contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not recognized in the financial statements but disclosed when an inflow of economic benefit is probable.

(ac)(ab)Standards and amendments to published standards that are not yet effective but relevant to the Company and its subsidiaries

The following are standards or amendments to existing standards that have been published and are mandatory for the accounting periods beginning on or after 1 January 2015,2017, but the Company and its subsidiaries have not early adopted:

·Amendments to IAS 19, “Defined benefit plans: Employee contributions”, which will be effective for accounting periods beginning on or after 1 July 2014.
·Annual improvement to IFRSs 2010-2012 cycle, which will be effective for accounting periods beginning on or after 1 July 2014.
·Annual improvement to IFRSs 2011-2013 cycle, which will be effective for accounting periods beginning on or after 1 July 2014.

F-30F-29

2Principal accounting policies (continued)(Continued)

(ac)(ab)Standards and amendments to published standards that are not yet effective but relevant to the Company and its subsidiaries (continued)(Continued)

·Amendments to IFRS 11, “Accounting for acquisitions of interests in joint operations”, which will be effective for accounting periods beginning on or after 1 January 2016.
·Amendments to IAS 16 and IAS 38, “Clarification of acceptable methods of depreciation and amortization”, which will be effective for accounting periods beginning on or after 1 January 2016.
·IFRS 15, “Revenue from contracts with customers”7, ‘Disclosure initiative’, which will be effective for accounting periods beginning on or after 1 January 2017.
·IFRS 9, “Financial instrument”Amendments to IAS 12, ‘Income taxes - Recognition of deferred tax assets for unrealised losses’, which will be effective for accounting periods beginning on or after 1 January 2017.
·IFRIC 22, ‘Foreign currency transactions and advance consideration’, which will be effective for accounting periods beginning on or after 1 January 2018.

·IFRS 15, ‘Revenue from contracts with customers’, which will be effective for accounting periods beginning on or after 1 January 2018.
·IFRS 9, ‘Financial instrument (2014)’, which will be effective for accounting periods beginning on or after 1 January 2018.
·IFRS 16, ‘Leases’, which will be effective for accounting periods beginning on or after 1 January 2019.
The Company and its subsidiaries have not assessed fullare in the process of making an assessment of what the impact of these amendments and new standards is expected to be in the period of initial application. So far it has concluded that the adoption of thesethe standards or amendments uponeffective for accounting periods beginning on or after 1 January 2017 is unlikely to have a significant impact on the Company and its subsidiaries’ results of operations and financial position. As the Company and its subsidiaries have not completed its assessment, further impacts may be identified in due course and will be taken into consideration when determining whether to adopt any of these new requirements before their effective date.date and which transitional approach to take, when there are alternative approaches allowed under the new standards.

3Financial capital and insurancecapital risks management

(a)Financial risk management

Risk management, including the management on the financial risks, is carried out under the instructions of the Strategic Committee of Board of Directors and the Risk Management Team. The Company works out general principles for overall management as well as management policies covering specific areas. In considering the importance of risks, the Company identifies and evaluates risks at head office and individual power plant level, and requires analysis and proper communication of the information collected periodically.

SinoSing Power and its subsidiaries are subject to financial risks that are different from the entities operating within the PRC. They have a series of controls in place to maintain the cost of risks occurring and the cost of managing the risks at an acceptable level. Management continually monitors the risk management process to ensure that an appropriate balance between risk and control is achieved. SinoSing Power and its subsidiaries have their written policies and financial authorization limits in place which are reviewed periodically. These financial authorization limits seek to mitigate and eliminate operational risks by setting approval thresholds required for entering into contractual obligations and investments.
F-30

3Financial and capital risks management (Continued)

(a)Financial risk management (Continued)

(i)Market risk

(1)Foreign exchange risk

Foreign exchange risk of the entities operating within the PRC primarily arises from loans denominated in foreign currencies of the Company and its subsidiaries. SinoSing Power and its subsidiaries are exposed to foreign exchange risk on accounts payable and other payables that are denominated primarily in US$, a currency other than Singapore dollar (“S$”), their functional currency. Please refer to Note 23 26 and 2926 for details. The Company and its subsidiaries manage exchange risk through closely monitoring interest and exchange market.

F-31
3Financial, capital and insurance risks management

(a)Financial risk management (continued)

(i)Market risk (continued)

(1)Foreign exchange risk (continued)

As at 31 December 2014,2016, if RMB had weakened/strengthened by 5% (2013 and 2012:(2015: 5%) against US$ and 3% (2013 and 2012:(2015: 3%) against EUR (“€”) with all other variables constant, exchange gain of the Company and its subsidiaries would have been RMB155further recognize exchange loss/gain amounted RMB142 million (2013 and 2012: RMB186 million and RMB217(2015: RMB144 million) and RMB13RMB9 million (2013 and 2012: RMB19 million and RMB19(2015: RMB10 million) lower/higher,, respectively. The ranges of such sensitivity disclosed above were based on the observation on the historical trend of related exchange rates during the previous year under analysis.

As at 31 December 2014,2016, if S$ had weakened/strengthened by 10% (2013 and 2012:(2015: 10%) against US$ with all other variables constant, exchange gain of the Company and its subsidiaries would have been RMB6further recognize exchange loss/gain amounted RMB10 million (2013 and 2012: RMB12 million and RMB25(2015: RMB2 million) lower/higher, respectively.. The ranges of such sensitivity disclosed above were based on the management’s experience and forecast.

SinoSing Power and its subsidiaries also are exposed to foreign exchange risk on fuel purchases that are denominated primarily in US$. They substantially hedge their estimated foreign currency exposure in respect of forecast fuel purchases over the following three months using primarily foreign currency contracts.

(2)Price risk

The available-for-sale financial assets of the Company and its subsidiaries are exposed to equity security price risk.

Detailed information relating to the available-for-sale financial assets is disclosed in Note 10. The Company has a supervisor in the supervisory committee of the most significant investment in available-for-sale financial assets (China Yangtze Power Co., Ltd. (“Yangtze Power”)) and exercises influence in safeguarding its interest.may exercise protective rights. The Company also closely monitors the pricing trends in the open market in determining its long-term strategic stakeholding decisions.

The Company and its subsidiaries are exposed to fuel price risk on fuel purchases. In particular, SinoSing Power and its subsidiaries use fuel oil swap to hedge against such a risk and designate them as cash flow hedges. Please refer to Note 1314 for details.
F-31

3Financial and capital risks management (Continued)

(a)Financial risk management (Continued)

(i)Market risk (Continued)

(3)Cash flow interest rate risk

The interest rate risk of the Company and its subsidiaries primarily arises from long-term loans. Loans borrowed at variable rates expose the Company and its subsidiaries to cash flow interest rate risk. The exposures of these risks are disclosed in Note 23 to the financial statements. The Company and its subsidiaries have entered into interest rate swap agreements with banks to hedge against a portion of cash flow interest rate risk.

F-32
3Financial, capital and insurance risks management (continued)
(a)Financial risk management (continued)

(i)Market risk (continued)

(3)Cash flow interest rate risk (continued)

As at 31 December 2014,2016, if interest rates on RMB-denominated borrowings had been 50 basis points (2013 and 2012: 50 basis points) higher/lower with all other variables held constant, interest expense for the year would have been RMB380RMB520 million (2013 and 2012: RMB389 million and RMB432(2015: RMB410 million) higher/lower. If interest rates on US$- denominated-denominated borrowings had been 50 basis points (2013 and 2012: 50 basis points) higher/ lower with all other variables held constant, interest expense for the year would have been RMB8 million (2013 and 2012: RMB9 million and RMB11 million) higher/ lower. If interest rates on S$-denominated borrowings had been 100 basis points (2013 and 2012: 100 basis points) higher/lower with all other variables held constant, interest expense for the year would have been RMB58RMB7 million (2013 and 2012: RMB64(2015: RMB8 million) higher/lower. If interest rates on S$-denominated borrowings had been 100 basis points higher/lower with all other variables held constant, interest expense for the year would have been RMB59 million and RMB72(2015: RMB60 million) higher/lower. The ranges of such sensitivity disclosed above were based on the observation on the historical trend of related interest rates during the previous year under analysis.

The Company has entered into a floating-to-fixed interest rate swap agreement to hedge against cash flow interest rate risk of a loan. According to the interest rate swap agreement, the Company agrees with the counterparty to settle the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional amounts quarterly until 2019. Tuas Power Generation Pte Ltd. (“TPG”) also entered into a number of floating-to-fixed interest rate swap agreements to hedge against cash flow interest rate risk of a loan. According to the interest rate swap agreements, TPG agrees with the counterparty to settle the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional amount semi-annually until 2020. Please refer to Note 1314 for details.

(ii)Credit risk

Credit risk arises from bank deposits, accounts receivable, other receivables and other non-current assets and loans to subsidiaries.assets. The maximum exposures of bank deposits,other non-current assets, other receivables, accounts receivable other receivables and other non-current assetsbank deposits are disclosed in Note 34,16, 18, 1719 and 1534 to the financial statements, respectively, and maximum exposures of loans to subsidiaries are disclosed in Note 9 (b).respectively.

Bank deposits are placed with reputable banks and financial institutions. In addition, a significant portion is deposited with a non-bank financial institution which is a related party of the Company. The Company has a director on the Board of this non-bank financial institution and exercises influence. Corresponding maximum exposures of these bank deposits are disclosed in Note 35(a)(i) to the financial statements.

F-33F-32

3Financial capital and insurancecapital risks management (continued)(Continued)

(a)Financial risk management (continued)(Continued)

(ii)Credit risk (continued)(Continued)

Most of the power plants of the Company and its subsidiaries operating within the PRC sell electricity generated to their sole customers, the power grid companies of their respective provinces or regions where the power plants operate. These power plants communicate with their individual grid companies periodically and believe that adequate provision for doubtful accounts have been made in the financial statements.

Singapore subsidiaries derive revenue mainly from sale of electricity to the National Electricity Market of Singapore operated by Energy Market Company Pte Ltd., which does not have high credit risk. TheySingapore subsidiaries also derive revenue mainly from retailing electricity to consumers with monthly consumption of more than 4,000kWh.2,000kWh. These customers engage in a wide spectrum of manufacturing and commercial activities in a variety of industries. TheySingapore subsidiaries hold cash deposits of RMB157.80RMB175.86 million (2013: RMB188.86(2015: RMB172.51 million) and guarantees from creditworthy financial institutions to secure substantial obligations of theas a security from these customers.

Regarding balances with subsidiaries, the Company obtains the financial statements of all subsidiaries and assess the financial performance and cash flows of those subsidiaries periodically to manage the credit risk of loans to subsidiaries.

(iii)Liquidity risk

Liquidity risk management is to primarily ensure the ability of the Company and its subsidiaries to meet its liabilities as and when they are fall due. The liquidity reserve comprises the undrawn borrowing facility and cash and cash equivalents available as at each month end in meeting its liabilities.

The Company and its subsidiaries maintain flexibility in funding by cash generated by their operating activities and availability of committed credit facilities.

Financial liabilities due within 12 months are presented as the current liabilities in the balance sheets.statement of financial position. The cash flows of derivative financial liabilities and repayment schedules of the long-term loans and long-term bonds and cash flows of derivative financial liabilities are disclosed in Note 14, 23 24 and 13,24, respectively.

(b)Fair value estimation

(i)Fair value measurements

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

·Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities.
·Level 2- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
·Level 3- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

F-34F-33

3Financial capital and insurancecapital risks management (continued)(Continued)

(b)Fair value estimation (continued)(Continued)

(i)Fair value measurements (continued)(Continued)

The following table presents the assets and liabilities of the Company and its subsidiaries that are measured at fair value at 31 December 2014.2016.

 The Company and its subsidiaries 
 Level 1  Level 2  Level 3  Total  Level 1  Level 2  Level 3  Total 
                        
Assets                        
Financial assets at fair value through profit or loss                        
– Trading derivatives (Note 13)  -   184,756   -   184,756 
                
Derivatives used for hedging (Note 13)  -   116,977   -   116,977 
          ��     
– Trading derivatives (Note 14)  -   5,881   -   5,881 
Derivatives used for hedging (Note 14)  -   372,442   -   372,442 
Available-for-sale financial assets                                
– Equity securities (Note 10)  2,748,162   -   -   2,748,162   1,820,713   -   -   1,820,713 
                
Total assets  2,748,162   301,733   -   3,049,895   1,820,713   378,323   -   2,199,036 
                
Liabilities                                
Financial liabilities at fair value through profit or loss                                
– Trading derivatives (Note 13)  -   149,989   -   149,989 
                
Derivatives used for hedging (Note 13)  -   1,332,251   -   1,332,251 
                
– Trading derivatives (Note 14)  -   619   -   619 
Derivatives used for hedging (Note 14)  -   334,119   -   334,119 
Total liabilities  -   1,482,240   -   1,482,240   -   334,738   -   334,738 
                

The following table presents the assets and liabilities of the Company and its subsidiaries that are measured at fair value at 31 December 2013.2015.

 The Company and its subsidiaries 
 Level 1  Level 2  Level 3  Total  Level 1  Level 2  Level 3  Total 
                        
Assets                        
Financial assets at fair value through profit or loss                        
– Trading derivatives (Note 13)  -   23,783   -   23,783 
                
Derivatives used for hedging (Note 13)  -   82,189   -   82,189 
                
– Trading derivatives (Note 14)  -   40,843   -   40,843 
Derivatives used for hedging (Note 14)  -   143,669   -   143,669 
Available-for-sale financial assets                                
– Equity securities (Note 10)  1,627,777   -   -   1,627,777   3,492,510   -   -   3,492,510 
                
Total assets  1,627,777   105,972   -   1,733,749   3,492,510   184,512   -   3,677,022 
                
Liabilities                                
Financial liabilities at fair value through profit or loss                                
– Trading derivatives (Note 13)  -   29,814   -   29,814 
                
Derivatives used for hedging (Note 13)  -   397,182   -   397,182 
                
– Trading derivatives (Note 14)  -   23,391   -   23,391 
Derivatives used for hedging (Note 14)  -   1,281,550   -   1,281,550 
Total liabilities  -   426,996   -   426,996   -   1,304,941   -   1,304,941 
                

F-35F-34

3Financial capital and insurancecapital risks management (continued)(Continued)

(b)Fair value estimation (continued)(Continued)

(i)Fair value measurements (continued)(Continued)

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date.end of reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Company and its subsidiaries is the current bid price. These instruments are included in level 1. As at 31 December 20142016 and 2013,2015, instrument included in level 1 is anare equity investmentinvestments in Yangtze Power and Bank of Jiangsu Co., Ltd. (“Bank of Jiangsu”) classified as available for sale.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Specific valuation techniques used to value financial instruments include:

·The forward exchange contracts and fuel oil swaps are both valued using quoted market prices or dealer quotes for similar instruments.

·The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.

Instruments included in level 2 comprise forward exchange contracts, fuel oil swaps and interest rate swaps.

There wereDuring the year ended 31 December 2016, there are no significant transfers of financial instruments between level 1 and level 2, fair value hierarchy classifications in 2014.or transfers into or out of level 3.

(ii)Fair value disclosures

The carrying value less provision for doubtful accounts of accounts receivable, other receivables and assets, accounts payable and other liabilities, short-term bonds and short-term loans approximated their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company and its subsidiaries for similar financial instruments.

The estimated fair value of long-term loans and long-term bonds (both including current maturities) was approximately RMB64.89 billion and RMB28.03 billion as at 31 December 2014 (2013: RMB73.03 billion and RMB29.27 billion), respectively. The aggregate book value of these liabilities was approximately RMB65.03 billion and RMB27.75 billion as at 31 December 2014 (2013: RMB73.31 billion and RMB29.42 billion), respectively.

F-36F-35

3Financial capital and insurancecapital risks management (continued)(Continued)

(b)Fair value estimation (Continued)

(ii)Fair value disclosures (Continued)

The estimated fair value of long-term loans and long-term bonds (both including current maturities) was approximately RMB74.48 billion and RMB15.71 billion as at 31 December 2016 (2015: RMB78.31 billion and RMB23.15 billion), respectively. The aggregate book value of these liabilities was approximately RMB74.55 billion and RMB15.48 billion as at 31 December 2016 (2015: RMB78.38 billion and RMB22.74 billion), respectively.

(c)Capital risk management

The objectives of the Company and its subsidiaries when managing capital are to safeguard the ability of the Company and its subsidiaries in continuing as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The Company and its subsidiaries monitor capital by using debt ratio analysis. This ratio is calculated as total liabilities (sum of current liabilities and non-current liabilities) divided by total assets as shown in the consolidated balance sheet.statement of financial position. During 2014,2016, the strategy of the Company and its subsidiaries remained unchanged from 2013.2015. The debt ratio of the Company and its subsidiaries as at 31 December 20142016 was 69.19% (2013: 71.33% ).67.54% (2015: 67.08%).

4Critical accounting estimates and judgementsjudgments

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company and its subsidiaries make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

(a)Accounting estimates on impairment of goodwill and power generation license

The Company and its subsidiaries perform test annually whether goodwill and power generation license have suffered any impairment in accordance with the accounting policies stated in Notes 2(j)Note 2(i) and 2(g), respectively. The recoverable amounts of CGU or CGUs to which goodwill and the power generation license have been allocated are determined based on value-in-use calculations. These calculations require the use of estimates (Note 1412 and 12)15). It is reasonably possible, based on existing knowledge, that outcomes within the next financial period that are different from assumptions could require a material adjustment to the carrying amounts of goodwill and power generation license.
F-36
4Critical accounting estimates and judgments (Continued)

(a)Accounting estimates on impairment of goodwill and power generation license (Continued)

For goodwill allocated to CGUs in the PRC, changes of assumptions in tariff and fuel price could have affected the results of goodwill impairment assessment. As at 31 December 2014,2016, if tariff had decreased by 1% or 5% from management’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against goodwill by approximately RMB357RMB176 million and RMB1,113RMB1,043 million, respectively. If fuel price had increased by 1% or 5% from the management’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against goodwill by RMB25RMB37 million and RMB124RMB899 million, respectively.

For the sensitivity analysis of goodwill and power generation license and goodwill of Tuas Power, please refer to Note 1412 and 12.

F-37

4Critical accounting estimates and judgements (continued)
15.

(b)Useful life of power generation license

As at year end, management of the Company and its subsidiaries assessed that the estimated useful life for its power generation license is indefinite. This assessment is based on the expected renewal of power generation license without significant restriction and cost, together with the consideration on related future cash flows generated and the expectation of continuous operations. Based on existing knowledge, outcomes within the next financial period that are different from assumptions could require a change to the carrying amount of power generation license.

(c)Useful lives of property, plant and equipment

Management of the Company and its subsidiaries determines the estimated useful lives of property, plant and equipment and respective depreciation. The accounting estimate is based on the expected wears and tears incurred during power generation. Wears and tears can be significantly different following renovation each time. When the useful lives differ from the original estimated useful lives, management will adjust the estimated useful lives accordingly. It is possible that the estimates made based on existing experience are different to the actual outcomes within the next financial period and could cause a material adjustment to the depreciation and carrying amount of property, plant and equipment.

(d)Estimated impairment of property, plant and equipmentother non-current assets

The Company and its subsidiaries test whether property, plant and equipment, land use rights and mining rights suffered anyfrom impairment whenever an impairment indication exists. In accordance with Note 2(j), an impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its recoverable amount. It is reasonably possible, based on existing knowledge, that outcomes within the next financial period that are different from assumptions could require a material adjustment to the carrying amount of property, plant and equipment.equipment, land use rights and mining rights.
F-37

4Critical accounting estimates and judgments (Continued)

(d)Estimated impairment of other non-current assets (Continued)

Changes of assumptions in tariff and fuel price will affect the result of property, plant and equipment, land use rights and mining rights impairment assessment. For power plants assets that are subject to impairment testing, as at 31 December 2014,2016, if tariff had decreased by 1% or 5% from management’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against property, plant and equipment and land use rights by approximately RMB108RMB92 million and RMB1,186RMB779 million, respectively. If fuel price had increased by 1% or 5% from the management’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against property, plant and equipment, land use rights and mining rights of the Company and its subsidiaries would decrease totaling by approximately RMB8 million and RMB39RMB38 million, respectively.

(e)Approval of construction of new power plants

The receiving of the ultimate approvals from National Development and Reform Commission (“NDRC”) on certain power plant construction projects of the Company and its subsidiaries is a critical estimate and judgment of the directors. Such estimates and judgments are based on initial approval documents received as well as their understanding of the projects. Based on historical experience, the directors believe that the Company and its subsidiaries will receive final approvals from NDRC on the related power plant projects. Deviation from the estimate and judgment could result in significant adjustment to the carrying amount of property, plant and equipment.

F-38
4Critical accounting estimates and judgements (continued)

(f)Deferred tax assets

The Company and its subsidiaries recognized the deferred tax assets to the extent that it is probable that future taxable profit will be available against which the asset can be utilized, using tax rates that are expected to be applied in the period when the asset is recovered. The management assesses the deferred tax assets based on the expected amount and timing of future taxable profit, the enacted tax laws and applicable tax rates. It is reasonably possible, based on existing knowledge, the outcomes within the next financial period that are different from assumptions could require a material adjustment to the carrying amount of deferred tax assets.
F-38

5Revenue and segment information

Revenues recognized during the year are as follows:

 For the year ended 31 December  For the year ended 31 December 
 2014  2013  2012  2016  2015  2014 
                  
Sales of power and heat  124,561,854   132,478,643   131,936,955   112,794,536   127,849,408   124,561,854 
Port service  204,763   352,988   330,518   237,347   211,685   204,763 
Transportation service  135,256   133,147   101,205   105,505   104,721   135,256 
Others  504,982   868,097   1,597,981   676,848   739,059   504,982 
            
Total  125,406,855   133,832,875   133,966,659   113,814,236   128,904,873   125,406,855 
            

Directors and certain senior management of the Company perform the function as the chief operating decision maker (collectively referred to as the “senior management”). The senior management reviews the internal reporting of the Company and its subsidiaries in order to assess performance and allocate resources. The Company has determined the operating segments based on these reports. The reportable segments of the Company are the PRC power segment, Singapore segment and all other segments (mainly including port and transportation operations). No operating segments have been aggregated to form a reportable segment.

Senior management assesses the performance of the operating segments based on a measure of profit before income tax expense under China Accounting Standard for Business Enterprises (“PRC GAAP”) excluding dividend income received from available-for-sale financial assets, gains on disposal of available-for-sale financial asset and operating results of the centrally managed and resource allocation functions of headquarters (“Segment results”). Other information provided, except as noted below, to the senior management of the Company is measured under PRC GAAP.

Segment assets exclude prepaid income tax, deferred income tax assets, available-for-sale financial assets and assets related to the centrally managed and resource allocation functions of headquarters that are not attributable to any operating segment (“corporate assets”). Segment liabilities exclude current income tax liabilities, deferred income tax liabilities and liabilities related to the centrally managed and resource allocation functions of headquarters that are not attributable to any operating segment (“corporate liabilities”). These are part of the reconciliation to total balance sheet assets and liabilities.

liabilities of consolidated statement of financial position.
F-39

5Revenue and segment information (continued)(Continued)

All sales among the operating segments were performed at market price or close to market price, and have been eliminated as internal transactions when preparing consolidated financial statements.

(Under PRC GAAP)
 PRC power segment  Singapore segment  All other segments  Total        (Under PRC GAAP) 
             PRC power segment  Singapore segment  All other segments  Total 
For the year ended 31 December 2014            
            
For the year ended 31 December 2016            
Total revenue  110,650,856   14,370,406   537,452   125,558,714   104,746,690   8,758,822   634,965   114,140,477 
Inter-segment revenue  -   -   (151,859)  (151,859)  -   -   (326,241)  (326,241)
                
Revenue from external customers  110,650,856   14,370,406   385,593   125,406,855   104,746,690   8,758,822   308,724   113,814,236 
                
Segment results  19,345,641   138,143   (779,964)  18,703,820   14,215,671   (282,703)  (35,371)  13,897,597 
                
Interest income  86,609   72,128   813   159,550   76,768   69,672   623   147,063 
Interest expense  (7,035,601)  (426,019)  (172,189)  (7,633,809)  (6,067,194)  (481,263)  (137,825)  (6,686,282)
Impairment loss  (1,427,976)  3,228   (696,812)  (2,121,560)
Impairment (loss)/reversal  (1,197,382)  899   (8,475)  (1,204,958)
Depreciation and amortization  (10,877,905)  (821,574)  (180,484)  (11,879,963)  (13,786,933)  (778,426)  (203,493)  (14,768,852)
Net loss on disposal of non-current assets
  (427,026)  (5)  (8)  (427,039)  (577,322)  (172)  (14,303)  (591,797)
Share of profits less losses of associates and joint ventures  1,143,326   -   43,655   1,186,981   1,104,614   -   76,477   1,181,091 
Income tax expense  (5,503,402)  (8,767)  1,590   (5,510,579)  (3,681,737)  44,135   57,489   (3,580,113)
                                
For the year ended 31December 2013                
For the year ended 31 December 2015                
Total revenue  119,084,406   14,239,562   660,029   133,983,997   118,418,506   10,143,793   588,266   129,150,565 
Inter-segment revenue  -   -   (151,122)  (151,122)  -   -   (245,692)  (245,692)
                
Revenue from external customers  119,084,406   14,239,562   508,907   133,832,875   118,418,506   10,143,793   342,574   128,904,873 
                
Segment results  17,630,165   157,079   (108,246)  17,678,998   24,073,432   (313,253)  (281,457)  23,478,722 
                
Interest income  98,737   70,445   1,541   170,723   93,324   66,898   501   160,723 
Interest expense  (6,968,512)  (448,876)  (138,139)  (7,555,527)  (7,181,116)  (452,034)  (163,325)  (7,796,475)
Impairment loss  (570,833)  (431,985)  (453,431)  (1,456,249)
Impairment (loss)/reversal  (2,913,766)  1,744   (178,131)  (3,090,153)
Depreciation and amortization  (10,633,399)  (686,619)  (158,583)  (11,478,601)  (13,244,965)  (772,003)  (245,936)  (14,262,904)
Net (loss)/gain on disposal of non-current assets
  (899,403)  (987)  10,560   (889,830)  (427,286)  22,450   (1)  (404,837)
Share of profits less losses of associates and joint ventures  587,062   -   (127,659)  459,403   1,421,072   -   24,915   1,445,987 
Income tax expense  (4,486,588)  (43,774)  (14,591)  (4,544,953)  (6,104,619)  254,772   14,397   (5,835,450)
                                
For the year ended 31 December 2012                
For the year ended 31 December 2014 (Restated*)                
Total revenue  113,685,824   19,841,166   614,688   134,141,678   125,271,587   14,370,406   537,452   140,179,445 
Inter-segment revenue  -   -   (175,019)  (175,019)  -   -   (152,755)  (152,755)
                
Revenue from external customers  113,685,824   19,841,166   439,669   133,966,659   125,271,587   14,370,406   384,697   140,026,690 
                
Segment results  8,391,022   1,242,808   (51,308)  9,582,522   22,113,100   138,143   (850,805)  21,400,438 
                
Interest income  104,777   70,047   578   175,402   97,012   72,128   813   169,953 
Interest expense  (8,006,824)  (481,124)  (126,882)  (8,614,830)  (7,803,090)  (426,019)  (172,189)  (8,401,298)
Impairment loss  (846,751)  (24,775)  (40)  (871,566)
Impairment (loss)/reversal  (1,488,619)  3,228   (696,812)  (2,182,203)
Depreciation and amortization  (10,280,131)  (619,823)  (147,239)  (11,047,193)  (12,131,006)  (821,574)  (180,484)  (13,133,064)
Net (loss)/gain on disposal of non-current assets
  (263,479)  (162)  13,334   (250,307)
Net loss on disposal of non-current assets
  (469,819)  (5)  (8)  (469,832)
Share of profits less losses of associates and joint ventures  608,958   -   (102,887)  506,071   1,143,326   -   49,208   1,192,534 
Income tax expense  (2,350,097)  (212,188)  (12,525)  (2,574,810)  (6,204,709)  (8,767)  1,590   (6,211,886)
F-40
5Revenue and segment information (continued)(Continued)

        (Under PRC GAAP) 
  PRC power segment  Singapore segment  All other segments  Total 
             
31 December 2016            
Segment assets  262,832,643   28,141,718   11,611,683   302,586,044 
Including:                
Additions to non-current assets (excluding financial assets and deferred income tax assets)  19,962,461   230,974   854,484   21,047,919 
Investments in associates  13,254,236   -   2,868,139   16,122,375 
Investments in joint ventures  1,197,665   -   785,610   1,983,275 
Segment liabilities  (186,489,967)  (14,027,606)  (5,620,515)  (206,138,088)
                 
31 December 2015                
Segment assets  253,376,399   27,487,701   10,703,373   291,567,473 
Including:                
Additions to non-current assets (excluding financial assets and deferred income tax assets)  22,421,000   160,282   642,949   23,224,231 
Investments in associates  13,026,027   -   2,806,231   15,832,258 
Investments in joint ventures  1,569,614   -   785,004   2,354,618 
Segment liabilities  (176,406,566)  (14,876,229)  (5,097,402)  (196,380,197)
(Under PRC GAAP)
  PRC power segment  Singapore segment  All other segments  Total 
             
31 December 2014            
Segment assets  225,513,728   28,899,723   10,622,010   265,035,461 
Including:                
Additions to non-current assets (excluding financial assets and deferred income tax assets)  24,202,811   444,658   872,615   25,520,084 
Investments in associates  11,638,862   -   2,264,565   13,903,427 
Investments in joint ventures  1,121,082   -   1,009,180   2,130,262 
Segment liabilities  (159,459,852)  (15,865,147)  (5,511,400)  (180,836,399)
                 
31 December 2013                
Segment assets  213,582,220   29,722,516   11,409,260   254,713,996 
Including:                
Additions to non-current assets (excluding financial assets and deferred income tax assets)  16,730,985   1,103,389   1,504,584   19,338,958 
Investments in associates  10,991,166   -   2,379,531   13,370,697 
Investments in joint ventures  798,000   -   978,013   1,776,013 
Segment liabilities  (156,529,664)  (15,926,935)  (5,106,756)  (177,563,355)
                 

A reconciliation of revenue from external customers to operating revenue is provided as follows:

  For the year ended 31 December 
  2016  2015  2014(Restated*) 
          
Revenue from external customers (PRC GAAP)  113,814,236   128,904,873   140,026,690 
Reconciling item:            
Impact of restatement under PRC GAAP            
in relation to business combination            
under common control*  -   -   (14,619,835)
Operating revenue per IFRS consolidated statement of comprehensive income  113,814,236   128,904,873   125,406,855 
  For the year ended 31 December 
  2014  2013  2012 
          
Revenue from external customers (PRC GAAP)  125,406,855   133,832,875   133,966,659 
Reconciling item:            
Impact of IFRS adjustment*  -   -   - 
Operating revenue per IFRS consolidated statement of comprehensive income  125,406,855   133,832,875   133,966,659 
             

A reconciliation of segment result to profit before income tax expense is provided as follows:

 For the year ended 31 December  For the year ended 31 December 
 2014  2013  2012  2016  2015  2014(Restated*) 
                  
Segment results (PRC GAAP)  18,703,820   17,678,998   9,582,522   13,897,597   23,478,722   21,400,438 
Reconciling items:                        
Loss related to the headquarter  (87,313)  (381,830)  (466,430)  (699,053)  (327,262)  (87,313)
Investment income from China Huaneng Finance Co., Ltd. (“Huaneng Finance”)  156,061   166,734   124,092 
Investment income from China            
Huaneng Finance Co., Ltd.            
(“Huaneng Finance”)  132,018   135,971   156,061 
Dividend income of available-for-sale financial assets  102,225   185,399   187,080   103,037   97,696   102,229 
Impact of IFRS adjustments*  174,787   (226,612)  (550,479)
            
Gains on disposal of available-for-sale financial asset  932,738   -   - 
Impact of restatement under PRC GAAP in relation to business combination under common control*
  -   -   (2,696,622)
Impact of other IFRS adjustments**  (553,199)  (427,077)  174,787 
Profit before income tax expense per IFRS consolidated statement of comprehensive income  19,049,580   17,422,689   8,876,785   13,813,138   22,958,050   19,049,580 
            
F-41
5Revenue and segment information (continued)(Continued)

Reportable segments’ assets are reconciled to total assets as follows:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Total segment assets (PRC GAAP)  265,035,461   254,713,996   302,586,044   291,567,473 
Reconciling items:                
Investment in Huaneng Finance  1,347,956   1,270,016   1,314,603   1,329,753 
Deferred income tax assets  998,870   762,561   1,558,670   1,305,548 
Prepaid income tax  19,899   5,119   141,423   2,393 
Available-for-sale financial assets  4,383,377   3,161,164   3,456,032   5,127,863 
Corporate assets  379,385   361,996   360,854   396,693 
Impact of IFRS adjustments*  3,006,820   1,957,908 
        
Total assets per IFRS consolidated balance sheet  275,171,768   262,232,760 
        
Impact of other IFRS adjustments**  5,422,113   9,136,631 
Total assets per IFRS consolidated statement of financial position  314,839,739   308,866,354 

Reportable segments’ liabilities are reconciled to total liabilities as follows:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Total segment liabilities (PRC GAAP)  (180,836,399)  (177,563,355)  (206,138,088)  (196,380,197)
Reconciling items:                
Current income tax liabilities  (750,750)  (700,082)  (440,791)  (1,054,246)
Deferred income tax liabilities  (1,595,025)  (1,788,922)  (1,355,099)  (1,417,972)
Corporate liabilities  (5,562,871)  (6,177,875)  (4,717,617)  (4,937,450)
Impact of IFRS adjustments*  (1,644,017)  (809,552)
        
Total liabilities per IFRS consolidated balance sheet  (190,389,062)  (187,039,786)
        
Impact of other IFRS adjustments**  (1,407)  (3,382,800)
Total liabilities per IFRS consolidated statement of financial position  (212,653,002)  (207,172,665)

Other material items:

 Reportable segment total  Headquarters  Investment income from Huaneng Finance  Impact of IFRS adjustments*  Total  Reportable segment total  Headquarters  Investment income from Huaneng Finance  Impact of restatement under PRC GAAP in relation to business combination under common control*  Impact of other IFRS adjustments**  Total 
                                 
For the year ended 31 December 2014               
For the year ended 31 December 2016                  
Interest expense  (7,633,809)  (180,305)  -   -   (7,814,114)  (6,686,282)  (131,244)  -   -   -   (6,817,526)
Depreciation and amortization  (11,879,963)  (54,896)  -   55,579   (11,879,280)  (14,768,852)  (48,934)  -   -   (344,929)  (15,162,715)
Impairment loss  (1,204,958)  -   -   -   -   (1,204,958)
Share of profits less losses of associates and joint ventures  1,186,981   -   156,061   (27,166)  1,315,876   1,181,091   -   132,018   -   (14,220)  1,298,889 
Net (loss)/gain on disposal of non-current assets  (427,039)  5   -   -   (427,034)
Net loss on disposal of non-current assets  (591,797)  (14)  -   -   1,762   (590,049)
Income tax expense  (5,510,579)  -   -   23,371   (5,487,208)  (3,580,113)  -   -   -   114,962   (3,465,151)
                                            
For the year ended 31 December 2013                    
For the year ended 31 December 2015                        
Interest expense  (7,555,527)  (231,945)  -   -   (7,787,472)  (7,796,475)  (149,259)  -   -   -   (7,945,734)
Depreciation and amortization  (11,478,601)  (23,540)  -   (43,374)  (11,545,515)  (14,262,904)  (60,236)  -   -   (394,473)  (14,717,613)
Impairment loss  (3,090,153)  -   -   -   -   (3,090,153)
Share of profits less losses of associates and joint ventures  459,403   -   166,734   (11,054)  615,083   1,445,987   -   135,971   -   (55,983)  1,525,975 
Net (loss)/gain on disposal of non-current assets  (889,830)  108   -   -   (889,722)
Net loss on disposal of non-current assets  (404,837)  (6)  -   -   (33,478)  (438,321)
Income tax expense  (4,544,953)  -   -   22,282   (4,522,671)  (5,835,450)  -   -   -   136,507   (5,698,943)
F-42

5Revenue and segment information (continued)(Continued)
  Reportable segment total  Headquarters  Investment income from Huaneng Finance  Impact of restatement under PRC GAAP in relation to business combination under common control*  Impact of other IFRS adjustments**  Total 
                   
For the year ended 31 December 2014 (Restated*)                
Interest expense  (8,401,298)  (180,305)  -   767,489   -   (7,814,114)
Depreciation and amortization  (13,133,064)  (54,896)  -   1,253,101   55,579   (11,879,280)
Impairment (loss)/ reversal  (2,182,203)  -   -   60,640   -   (2,121,563)
Share of profits less losses of associates and joint ventures  1,192,534   -   156,061   (5,553)  (27,166)  1,315,876 
Net (loss)/gain on disposal of non-current assets  (469,832)  5   -   42,793   -   (427,034)
Income tax expense  (6,211,886)  -   -   701,307   23,371   (5,487,208)

*The Company completed the acquisition of equity interests of ten companies from Huaneng Group and HIPDC, see Note 39 for details. As the acquisition is a business combination under common control, the transaction is accounted for under merger accounting method under PRC GAAP. The assets and liabilities acquired in business combinations are measured at the carrying amounts of the acquirees in the consolidated financial statements of the ultimate controlling party on the acquisition date. The operating results for all periods presented are retrospectively restated as if the current structure and operations resulting from the acquisition had been in existence from the date when the acquirees first became under the control of the same ultimate controlling party. Therefore the relevant comparative figures in the segment information were restated under PRC GAAP while the acquisition is accounted for using acquisition method under IFRS.

  Reportable segment total  Headquarters  Investment income from Huaneng Finance  Impact of IFRS adjustments*  Total 
                
For the year ended 31 December 2012               
Interest expense  (8,614,830)  (282,267)  -   -   (8,897,097)
Depreciation and amortization  (11,047,193)  (42,749)  -   (166,468)  (11,256,410)
Share of profits less losses of associates and joint ventures  506,071   -   124,092   (7,805)  622,358 
Net (loss)/gain on disposal of  non-current assets  (250,307)  (1)  -   (70)  (250,378)
Income tax expense  (2,574,810)  -   -   64,440   (2,510,370)

**TheOther GAAP adjustments above primarily represented the classification adjustments and other adjustments. The GAAP adjustments otherOther than the classification adjustments, were primarily brought forward from prior years. Suchthe differences will be gradually eliminated following subsequent depreciation and amortization of related assets or the extinguishment of liabilities.

Geographical information (Under IFRS):

(i)External revenue generated from the following countries:

 For the year ended 31 December  For the year ended 31 December 
 2014  2013  2012  2016  2015  2014 
                  
PRC  111,036,449   119,593,313   114,125,493   105,055,414   118,761,080   111,036,449 
Singapore  14,370,406   14,239,562   19,841,166   8,758,822   10,143,793   14,370,406 
            
Total  125,406,855   133,832,875   133,966,659   113,814,236   128,904,873   125,406,855 
            

(ii)Non-current assets (excluding financial assets and deferred income tax assets) are located in the following countries:
  As at 31 December 
  2016  2015 
       
PRC  249,155,921   245,620,977 
Singapore  23,369,766   22,874,396 
Total  272,525,687   268,495,373 

  As at 31 December 
  2014  2013 
       
PRC  207,709,257   198,621,517 
Singapore  23,808,140   24,920,351 
         
Total  231,517,397   223,541,868 
         
F-43
5Revenue and segment information (Continued)

The information on sales to major customers of the Company and its subsidiaries at amount equal to or more than 10% of external revenue is as follows:

  For the year ended 31 December 
  2016  2015  2014 
  Amount  Proportion  Amount  Proportion  Amount  Proportion 
                   
State Grid Jiangsu Electric Power Company  13,495,734   12%  14,835,745   12%  15,573,769   12%
State Grid Shandong Electric Power Company  12,649,224   11%  14,855,655   12%  16,621,611   13%
  For the year ended 31 December 
  2014  2013  2012 
  Amount  Proportion  Amount  Proportion  Amount  Proportion 
                   
Shandong Electric Power Corporation  16,621,611   13%  16,545,732   12%  16,492,367   12%
Jiangsu Electric Power Company  15,573,769   12%  16,950,098   13%  16,289,628   12%

F-43

6Profit before income tax expense

Profit before income tax expense was determined after charging/(crediting) the following:

  For the year ended 31 December 
  2016  2015  2014 
          
Total interest expense on borrowing  7,267,490   8,716,074   8,371,506 
Less: amounts capitalized in property, plant and equipment  449,964   770,340   557,392 
Interest expenses charged in consolidated statement of comprehensive income  6,817,526   7,945,734   7,814,114 
Auditors’ remuneration  43,610   41,640   33,840 
Operating leases charge  331,496   313,723   283,661 
Fuel  56,617,542   59,242,367   64,762,908 
Depreciation of property, plant and equipment  14,815,620   14,411,632   11,646,683 
Amortization of land use rights  225,707   213,206   139,088 
Amortization of other non-current assets  121,388   92,775   99,528 
Impairment loss of property, plant and equipment (Note 7)  1,063,735   1,047,641   1,358,522 
Impairment loss of land use rights (Note 11)  51,981   -   - 
Impairment loss of investment in an associate (Note 8)  -   178,131   120,050 
Impairment loss of mining rights  -   760,296   - 
Impairment loss of goodwill  -   1,105,649   641,061 
Recognition/(reversal) of provision for doubtful accounts  89,498   (3,392)  4,577 
(Reversal)/recognition of provision for inventory obsolescence  (256)  1,828   (2,647)
Net loss on disposals of non-current assets  590,049   438,321   427,034 
Government grants  (396,467)  (696,735)  (787,988)
Gain on a bargain purchase (Note 39)  (129,921)  -   - 
Included in other investment income            
-Gains on disposal of available-for-sale financial asset (Note 10)  (932,738)  -   - 
-Dividends on available-for-sale financial assets  (103,037)  (97,696)  (102,229)
  For the year ended 31 December 
  2014  2013  2012 
          
Interest on loans and bonds wholly repayable within five years  6,707,204   6,512,297   6,957,103 
Interest on other loans and bonds  1,664,302   1,773,639   2,589,261 
             
Total interest expense  8,371,506   8,285,936   9,546,364 
Less: amounts capitalized in property, plant and equipment  557,392   498,464   649,267 
             
   7,814,114   7,787,472   8,897,097 
             
Auditors’ remuneration  33,840   32,340   31,030 
Operating leases  422,749   331,559   269,833 
Fuel  64,762,908   73,807,817   82,355,449 
Depreciation of property, plant and equipment  11,646,683   11,293,522   11,032,748 
Amortization of other non-current assets  99,528   112,384   86,275 
             
Impairment loss of property, plant and equipment (Note 7)  1,358,522   472,921   903,463 
Impairment loss of goodwill (Note 14)  641,061   980,513   107,735 
Impairment loss of investment in an associate (Note 8)  120,050   -   - 
Recognition / (reversal) of provision for doubtful accounts  4,577   (2,610)  (10,310)
(Reversal)/ Recognition of provision for inventory obsolescence
  (2,647)  (824)  12,155 
Net loss on disposals of property, plant and equipment  427,034   897,222   252,741 
Government grants  (787,988)  (253,729)  (491,465)


F-44


6Profit before income tax expense (Continued)

Other operating expenses consist of impairment loss of property, plant and equipment, land use rights, goodwill, mining rights and investment in an associate, environmental protection expenses, substituted power arrangement expenses, insurance, gain on a bargain purchase, government grants and other miscellaneous expenses.

F-44
7Property, plant and equipment

  Dam  Port facilities  Buildings  Electric utility plant in service  Transport-ation facilities  Others  CIP  Total 
                         
As at 1 January 2015                        
Cost  836,194   5,127,923   6,711,769   276,801,979   893,417   5,480,587   20,000,109   315,851,978 
Accumulated depreciation  (48,046)  (549,438)  (2,099,073)  (115,023,072)  (304,926)  (3,003,834)  -   (121,028,389)
Accumulated impairment loss  (80,910)  (568,637)  (62,554)  (5,279,829)  -   (73,295)  (379,307)  (6,444,532)
Net book value  707,238   4,009,848   4,550,142   156,499,078   588,491   2,403,458   19,620,802   188,379,057 
Year ended 31 December 2015                                
Beginning of the year  707,238   4,009,848   4,550,142   156,499,078   588,491   2,403,458   19,620,802   188,379,057 
Reclassification  -   -   94,127   (23,353)  70,432   (141,206)  -   - 
Business combination (Note 39)  330,578   -   502,852   19,822,767   13   285,819   5,519,969   26,461,998 
Additions  -   -   17   133,482   -   141,991   21,574,660   21,850,150 
Transfer from CIP  573,234   47,480   832,961   21,654,923   -   125,889   (23,234,487)  - 
Disposals/Write-off  -   -   (859)  (802,652)  508   7,575   -   (795,428)
Transfer from a subsidiary to a joint venture*  -   (522,289)  (16,097)  -   -   (81,462)  -   (619,848)
Depreciation charge  (24,498)  (111,245)  (234,073)  (13,618,136)  (50,380)  (403,120)  -   (14,441,452)
Impairment charge  (152,714)  -   (302)  (526,191)  -   (557)  (367,877)  (1,047,641)
Currency translation differences  -   -   -   (133,733)  -   22,847   (2,880)  (113,766)
End of the year  1,433,838   3,423,794   5,728,768   183,006,185   609,064   2,361,234   23,110,187   219,673,070 
As at 31 December 2015                                
Cost  1,856,144   3,860,009   8,306,471   327,827,738   980,290   5,809,400   23,851,697   372,491,749 
Accumulated depreciation  (153,325)  (436,215)  (2,508,772)  (138,852,591)  (371,226)  (3,366,838)  -   (145,688,967)
Accumulated impairment loss�� (268,981)  -   (68,931)  (5,968,962)  -   (81,328)  (741,510)  (7,129,712)
Net book value  1,433,838   3,423,794   5,728,768   183,006,185   609,064   2,361,234   23,110,187   219,673,070 
Year ended 31 December 2016                                
Beginning of the year  1,433,838   3,423,794   5,728,768   183,006,185   609,064   2,361,234   23,110,187   219,673,070 
Reclassification  -   1,771   (492,558)  495,841   759   (5,813)  -   - 
Business combination (Note 39)  -   -   8,098   303,854   -   2,977   4,576   319,505 
Additions  -   1,770   127   418,812   -   122,519   18,839,102   19,382,330 
Transfer from CIP  20,170   246,712   1,319,019   12,576,736   20,033   296,648   (14,479,318)  - 
Disposals/write-off  -   -   (68,945)  (495,251)  (26,477)  (27,055)  (193,357)  (811,085)
Depreciation charge  (32,987)  (113,810)  (255,882)  (14,004,881)  (48,720)  (387,884)  -   (14,844,164)
Impairment charge  (41,423)  -   (2,303)  (1,005,367)  -   (6,399)  (8,243)  (1,063,735)
Currency translation differences  -   -   -   404,948   -   782   158   405,888 
End of the year  1,379,598   3,560,237   6,236,324   181,700,877   554,659   2,357,009   27,273,105   223,061,809 
As at 31 December 2016                                
Cost  1,876,314   4,116,914   9,056,858   341,195,395   875,630   6,041,783   28,022,858   391,185,752 
Accumulated depreciation  (186,312)  (556,677)  (2,749,300)  (152,408,524)  (320,971)  (3,596,546)  -   (159,818,330)
Accumulated impairment loss  (310,404)  -   (71,234)  (7,085,994)  -   (88,228)  (749,753)  (8,305,613)
Net book value  1,379,598   3,560,237   6,236,324   181,700,877   554,659   2,357,009   27,273,105   223,061,809 
  Dam  Port facilities  Buildings  Electric utility plant in service  Transportation facilities  Others  CIP  Total 
                         
As at 1 January 2013                        
Cost  606,141   2,479,629   5,297,159   251,732,881   723,816   4,327,587   18,724,052   283,891,265 
Accumulated depreciation  (14,652)  (284,397)  (1,727,304)  (97,189,822)  (219,667)  (2,413,135)  -   (101,848,977)
Accumulated impairment loss  -   -   -   (4,914,159)  -   (46,697)  (67,805)  (5,028,661)
                                 
Net book value  591,489   2,195,232   3,569,855   149,628,900   504,149   1,867,755   18,656,247   177,013,627 
                                 
Year ended 31 December 2013                                
Beginning of the year  591,489   2,195,232   3,569,855   149,628,900   504,149   1,867,755   18,656,247   177,013,627 
Reclassification  11,144   670,128   135,903   (837,941)  (58,604)  79,370   -   - 
Acquisition of subsidiaries (Note 39)  -   -   -   38   -   1,788   762,661   764,487 
Additions  -   -   2,173   374,196   100,990   207,529   17,076,945   17,761,833 
Transfer from CIP  56,105   528,151   471,852   13,350,005   8,251   180,716   (14,595,080)  - 
Reclassification to assets held for sale (Note 19)  -   (261,484)  (10,703)  -   -   (48,881)  (42,880)  (363,948)
Disposals  (4,094)  (5,607)  (266,578)  (951,162)  (3,607)  (44,356)  (49,231)  (1,324,635)
Disposal of a subsidiary  -   -   -   (7,745)  -   (124)  -   (7,869)
Depreciation charge  (16,410)  (80,933)  (174,495)  (10,662,926)  (37,423)  (343,416)  -   (11,315,603)
Impairment charge  -   -   (11,539)  (456,021)  -   (5,361)  -   (472,921)
Currency translation differences  -   -   -   (385,072)  -   (1,868)  (252,850)  (639,790)
                                 
End of the year  638,234   3,045,487   3,716,468   150,052,272   513,756   1,893,152   21,555,812   181,415,181 
                                 
As at 31 December 2013                                
Cost  668,650   3,479,480   5,644,172   260,624,078   768,203   4,610,653   21,584,252   297,379,488 
Accumulated depreciation  (30,416)  (433,993)  (1,883,488)  (105,512,124)  (254,447)  (2,647,293)  -   (110,761,761)
Accumulated impairment loss  -   -   (44,216)  (5,059,682)  -   (70,208)  (28,440)  (5,202,546)
                                 
Net book value  638,234   3,045,487   3,716,468   150,052,272   513,756   1,893,152   21,555,812   181,415,181 
                                 
Year ended 31 December 2014                                
Beginning of the year  638,234   3,045,487   3,716,468   150,052,272   513,756   1,893,152   21,555,812   181,415,181 
Reclassification  -   -   227,917   (344,746)  31,812   85,017   -   - 
Acquisition of a subsidiary (Note 39)  -   -   -   -   -   156   10,594   10,750 
Additions  -   -   68   331,026   85,465   134,743   20,150,978   20,702,280 
Transfer from CIP  167,544   1,648,442   806,588   18,474,896   2,082   659,735   (21,759,287)  - 
Disposals  -   -   (89)  (457,662)  -   (832)  -   (458,583)
Net effect of sales leaseback finance lease  -   -   -   30,829   -   -   -   30,829 
Depreciation charge  (17,630)  (115,444)  (182,472)  (10,946,184)  (44,624)  (364,520)  -   (11,670,874)
Impairment charge  (80,910)  (568,637)  (18,338)  (336,328)  -   (3,442)  (350,867)  (1,358,522)
Currency translation differences  -   -   -   (305,025)  -   (551)  13,572   (292,004)
                                 
End of the year  707,238   4,009,848   4,550,142   156,499,078   588,491   2,403,458   19,620,802   188,379,057 
                                 
As at 31 December 2014                                
Cost  836,194   5,127,923   6,711,769   276,801,979   893,417   5,480,587   20,000,109   315,851,978 
Accumulated depreciation  (48,046)  (549,438)  (2,099,073)  (115,023,072)  (304,926)  (3,003,834)  -   (121,028,389)
Accumulated impairment loss  (80,910)  (568,637)  (62,554)  (5,279,829)  -   (73,295)  (379,307)  (6,444,532)
                                 
Net book value  707,238   4,009,848   4,550,142   156,499,078   588,491   2,403,458   19,620,802   188,379,057 
                                 

*          Huaneng Yingkou Port Limited Liability Company (“Yingkou Port”) was previously a subsidiary of the Company. Pursuant to the terms of the shareholder agreement signed in June, 2008, between the Company and the other 50% shareholder, the Company was given the rights and ability to solely direct the relevant activities, including all financial and operating decisions, whilst the Company holds 50% equity interest in Yingkou Port.

For the purpose of better utilization of the expertise of both shareholders in terms of port operation and management, the Company and the other shareholder agreed to optimize the business model of Yingkou Port and amended the articles of association and shareholder agreement of Yingkou Port on 1 January 2015. In accordance with the amended articles of association and shareholder agreement, the Company’s  rights and ability to solely direct significant financial and operating decisions have been removed, and therefore, Yingkou Port became a joint venture and is jointly controlled by the Company and the other shareholder.
F-45
7Property, plant and equipment (Continued)


Interest capitalization

Interest expense of approximately RMB557RMB450 million (2013(2015 and 2012: RMB4982014: RMB770 million and RMB649RMB557 million) arising on borrowings for the construction of property, plant and equipment was capitalized during the year and was included in ‘Additions’ in property, plant and equipment. The weighted average capitalization rate was approximately 5.98% (20134.52% (2015 and 2012: 5.74%2014: 5.31% and 6.40%5.98%) per annum.

Impairment

In 2016, impairment losses for certain property, plant and equipment and land use rights of approximately RMB1,064 million and RMB52 million have been recognized, respectively. Factors leading to the impairment of operating projects primarily included lower utilization hours and tariff of two coal-fired power plants as a result of over supply of electricity in two provinces, as well as low utilization hours of a hydropower plant as a result of low level of water inflow. Discount rates of 8.06%, 8.97% and 8.12% were adopted in the value in use model in the determination of the recoverable amounts for the two coal-fired power plants and the hydropower plant respectively.

In 2015, impairment losses for certain property, plant and equipment of approximately RMB1,048 million have been recognized. Factors leading to the impairment of operating projects primarily included lower utilization hours and tariff of two coal-fired power plants as a result of over supply of electricity in two provinces, as well as low utilization hours of a hydropower plant as a result of low level of water inflow to the main dam . Discount rates of 7.86%, 8.81% and 7.60% were adopted in the value in use model in the determination of the recoverable amounts for the two coal-fired power plants and the hydropower plant respectively. Besides, as a result of the low demand of coal-fired power in local market, management estimated the possibility of further development of a coal-fired power project was remote, therefore the project under construction with a carrying value of RMB368 million was fully impaired in 2015.

In 2014, impairment losses for certain property, plant and equipment of approximately RMB1,359 million have been recognized. Factors leading to the impairment primarily included continuous losses and external environment deterioration in respect of port industry, continuous low level of water inflow to the main dam of a hydropower plant and shut-down of a coal-fired power plant. Discount rates of 9.54%, 7.24% and 8.68% were adopted in the value in use model in the determination of the recoverable amounts for the port plant, hydropower plant and coal-fired power plant respectively.

F-45
7Property, plant and equipment (continued)
Impairment (continued)

In 2013, impairment losses for certain property, plant and equipment of approximately RMB473 million have been recognized. Factors leading to the impairment primarily included shut-down of power plants and the continuous deterioration in utilization of certain non-power assets in a foreign subsidiary. Discount rates of 8.80% and 12.84% were adopted in the value in use model in the determination of the recoverable amounts for the coal-fired power plants and for the CGU of the foreign subsidiary respectively.

In 2012, impairment losses for certain property, plant and equipment of approximately RMB903 million have been recognized. The factors leading to the impairment were the continuous deterioration in utilization and the competition from non-coal fired power generation plants. The recoverable amounts are determined based on value in use of the related power generation units, which is a CGU. A discount rate of 7.24% was adopted in the model.

Property, plant and equipment held under finance leases

As at 31 December 2014,2016, certain property, plant and equipment with original cost of RMB1,657RMB2,075 million (2013: RMB130(2015: RMB1,912 million) were held under finance leases, which mainly included power generation assets, ships and pipeline assets.

Security

As at 31 December 2014,2016, certain property, plant and equipment were secured to a bank as collateral against a long-term loan (Note 23).

Buildings without ownership certificate

At 31 December 2016, the Company and a short-term loan (Note 29)its subsidiaries were in the process of applying for the ownership certificate for certain buildings (buildings for power generation process were included in electric utility plant in service) with an aggregate net book value of RMB7,871 million (2015: RMB8,314 million). The management are of the opinion that the Company and its subsidiaries are entitled to lawfully and validly occupy and use of the above mentioned buildings.
F-46
 
8Investments in associates and joint ventures

  2014  2013 
       
Beginning of the year  16,678,694   14,596,771 
Additional capital injections in associates  266,877   430,480 
Additional capital injection in a joint venture  -   158,000 
Acquisition of an associate  -   1,508,316 
Share of net profits less loss  1,315,876   615,083 
Share of other comprehensive income/ (loss)  87,579   (35,481)
Dividends  (602,066)  (541,960)
Impairment charge  (120,050)  - 
Others  -   (52,515)
         
End of the year  17,626,910   16,678,694 
         
  2016  2015 
       
Beginning of the year  19,745,192   17,626,910 
Capital injections in associates and joint ventures  276,118   889,780 
Business combination  -   136,244 
Share of net profit less loss  1,298,889   1,525,975 
Share of other comprehensive (loss)/income  (180,572)  678,793 
Dividends  (1,507,514)  (934,379)
Impairment charge  -   (178,131)
End of the year  19,632,113   19,745,192 

As at 31 December 2014,2016, investments in associates and joint ventures of the Company and its subsidiaries are unlisted except for Shenzhen Energy Corporation Limited (“SECL”) which is listed on the Shenzhen Stock Exchange. The following list contains only the particulars of material associates and joint ventures:

Country of RegisteredBusiness nature and Percentage of equity interest held 
NameCountry of incorporationRegistered capitalBusiness nature and scope of operation Direct  
Indirect1
 
          
Associates:         
SECL*PRCRMB2,642,994,398Energy and investment in related industries  25.02%  - 
Hebei Hanfeng Power Generation Limited Liability Company(“Company (“Hanfeng Power”)PRCRMB1,975,000,000Power generation  40%  - 

F-46
8Investments in associates and joint ventures (continued)

Percentage of equity interest held
NameCountry of incorporationRegistered capitalBusiness nature and scope of operationDirect
Indirect1
Associates: (continued)
Huaneng FinancePRCRMB5,000,000,000Provision for financial service including fund deposit services, lending, finance lease arrangements, notes discounting and entrusted loans and investment arrangement within Huaneng Group  20%  - 
Huaneng Sichuan Hydropower Co., Ltd. (“Sichuan Hydropower”)PRCRMB1,469,800,000Development, investment, construction, operation and management of hydropower  49%  - 
China Huaneng Group Fuel Co., Ltd.(“Huaneng Group Fuel Company”) **PRCRMB3,000,000,000Wholesale of coal, import and export of coal  50%  - 
Hainan Nuclear Power Limited Liability Company (“Hainan Nuclear”)PRCRMB2,059,334,000Construction and operation of nuclear power plants; production and sales of electricity and related products  30%-
            
Joint ventures:           
Shanghai Time Shipping Co., Ltd. (“Shanghai Time Shipping”)PRCRMB1,200,000,000International and domestic sea transportation  50%  - 
Jiangsu Nantong Power Generation Co., Ltd. (“Jiangsu Nantong Power”)PRCRMB1,596,000,000
Operation and Management of power generation plants and transportation related projects
  -   35%

1The indirect percentage of equity interest held represents the effective ownership interest of the Company and its subsidiaries.

*As at 31 December 2014,2016, the fair value of the Company’s shares in SECL was RMB7,379RMB6,813 million (2013: RMB3,636(2015: RMB9,729 million).

F-47
8Investments in associates and joint ventures (Continued)

**In accordance with the articles of the association of the investee, the Company could exciseonly exercise significant influence on the investee and therefore accounts for the investment under the equity method.

In 2014,2015, due to continuous loss as a result of deterioration of coal industry, impairment loss of RMB178 million (2014: RMB120 millionmillion) was provided for the investment in an associate engaged in coal production and sales.

All the above associates and joint ventures are accounted for under the equity method in the consolidated financial statements.

F-47F-48
8Investments in associates and joint ventures (continued)(Continued)

Summarized financial information of the material associates, adjusted for any differences in accounting policies and acquisition adjustments, and reconciliation to the carrying amounts in the consolidated financial statements, are disclosed below:

  Sichuan Hydropower  SECL  Huaneng Finance  Hanfeng Power  Huaneng Group Fuel Company  Hainan Nuclear 
  2016  2015  2016  2015  2016  2015  2016  2015  2016  2015  2016  2015 
                                     
Gross amounts of the associates’                                    
Current assets  1,245,157   1,207,407   14,021,440   16,556,930   13,919,342   15,612,635   806,432   663,263   4,642,797   5,236,751   2,608,909   1,744,274 
Non-current assets  14,676,021   14,734,831   46,584,060   39,075,400   18,055,386   16,012,855   2,616,639   3,016,665   4,269,520   4,468,686   23,939,921   21,281,843 
Current liabilities  (2,410,462)  (2,894,554)  (16,564,310)  (15,009,530)  (25,344,346)  (24,881,159)  (1,045,876)  (1,158,424)  (1,939,210)  (2,594,360)  (3,330,581)  (907,693)
Non-current liabilities  (8,901,599)  (8,349,972)  (19,395,060)  (16,130,880)  (57,368)  (95,567)  (37,103)  (35,968)  (3,432,326)  (3,679,055)  (18,356,288)  (17,609,808)
Equity  4,609,117   4,697,712   24,646,130   24,491,920   6,573,014   6,648,764   2,340,092   2,485,536   3,540,781   3,432,022   4,861,961   4,508,616 
-Equity attributable to shareholders  3,449,824   3,573,323   21,610,140   21,679,710   6,573,014   6,648,764   2,340,092   2,485,536   3,378,952   3,287,867   4,861,961   4,508,616 
-Non-controlling interests  1,159,293   1,124,389   3,035,990   2,812,210   -   -   -   -   161,829   144,155   -   - 
                                                 
Revenue  2,053,327   2,379,072   11,427,830   11,361,320   1,093,637   1,182,782   2,192,445   2,272,013   14,356,915   14,985,952   1,897,190   31,588 
Profit from continuing operations attributable to shareholders  173,220   308,603   1,362,028   1,865,095   660,089   679,857   290,470   431,337   102,363   65,887   18,618   11,696 
Other comprehensive (loss)/income attributable to shareholders  -   -   (638,680)  2,765,600   (125,840)  (80,871)  -   -   8,723   6,306   -   - 
Total comprehensive income attributable to shareholders  173,220   308,603   723,348   4,630,695   534,249   598,986   290,470   431,337   111,086   72,193   18,618   11,696 
Dividend received from the associates  145,392   189,499   198,348   132,232   122,000   138,000   174,366   115,954   10,000   -   -   - 
                                                 
Reconciled to the interests in the associates                                                
Gross amounts of net assets attributable to shareholders of the associate  3,449,824   3,573,323   21,610,140   21,679,710   6,573,014   6,648,764   2,340,092   2,485,536   3,378,952   3,287,867   4,861,961   4,508,616 
The Company’s effective interest  49%  49%  25.02%  25.02%  20%  20%  40%  40%  50%  50%  30%  30%
The Company’s share of net assets attributable to shareholders of the associate  1,690,414   1,750,928   5,405,776   5,423,179   1,314,603   1,329,753   936,037   994,214   1,689,476   1,643,934   1,458,588   1,352,585 
Impact of adjustments  207,586   207,586   1,161,810   1,161,810   -   -   293,082   293,082   16,521   16,521   14,076   14,076 
Carrying amount in the consolidated financial statements  1,898,000   1,958,514   6,567,586   6,584,989   1,314,603   1,329,753   1,229,119   1,287,296   1,705,997   1,660,455   1,472,664   1,366,661 
  Sichuan Hydropower  SECL  Huaneng Finance  Hanfeng Power  Huaneng Group Fuel Company 
  2014  2013  2014  2013  2014  2013  2014  2013  2014  2013 
                               
Gross amounts of the associates’                              
Current assets  1,004,545   714,010   10,877,590   8,505,710   17,210,954   13,422,872   442,559   696,030   5,315,592   5,433,923 
Non-current assets  14,680,349   14,186,032   27,206,670   23,876,390   12,411,987   13,121,228   3,136,295   3,337,694   4,652,860   4,279,796 
Current liabilities  (2,752,050)  (2,577,081)  (13,805,720)  (11,418,660)  (22,761,053)  (20,179,865)  (1,358,923)  (1,602,031)  (2,988,992)  (3,067,039)
Non-current liabilities  (8,228,061)  (7,701,162)  (4,152,700)  (2,319,590)  (122,110)  (14,155)  (10,911)  (218,129)  (3,627,542)  (3,452,941)
Equity  4,704,783   4,621,799   20,125,840   18,643,850   6,739,778   6,350,080   2,209,020   2,213,564   3,351,918   3,193,739 
-Equity attributable to shareholders  3,617,367   3,568,759   17,563,160   16,203,300   6,739,778   6,350,080   2,209,020   2,213,564   3,215,675   3,065,683 
-Non-controlling interests  1,087,416   1,053,040   2,562,680   2,440,550   -   -   -   -   136,243   128,056 
                                         
Revenue  2,544,980   2,379,451   12,691,060   12,398,660   1,314,173   1,282,665   2,508,099   2,750,621   17,386,709   10,036,310 
Profit from continuing operations attributable to shareholders  367,955   338,500   1,985,921   1,200,888   780,304   833,668   267,851   221,571   154,577   78,128 
Other comprehensive (loss)/income attributable to shareholders  (588)  (441)  49,170   11,070   379,393   (190,172)  -   -   (622)  - 
Total comprehensive income
attributable to shareholders		  367,367   338,059   2,035,091   1,211,958   1,159,697   643,496   267,851   221,571   153,955   78,128 
Dividend received from the associate  172,894   265,026   165,290   66,116   154,000   110,000   -   -   -   - 
                                         
Reconciled to the interests in the associates                                        
Gross amounts of net assets of the associate  3,617,367   3,568,759   17,563,160   16,203,300   6,739,778   6,350,081   2,209,020   2,213,564   3,215,675   3,065,683 
The Company’s effective interest  49%   49%   25.02%   25.02%   20%   20%   40%   40%   50%   50% 
The Company’s share of net assets of the associate  1,772,510   1,748,692   4,393,424   4,053,255   1,347,956   1,270,016   883,608   885,426   1,607,838   1,532,842 
Impact of adjustments  224,288   240,990   1,165,428   1,161,809   -   -   347,108   347,108   16,521   14,539 
Carrying amount in the consolidated financial statements  1,996,798   1,989,682   5,558,852   5,215,064   1,347,956   1,270,016   1,230,716   1,232,534   1,624,359   1,547,381 
                                         


F-48F-49
8Investments in associates and joint ventures (continued)(Continued)

Aggregate information of associates that are not individually material:

  2014  2013 
       
Aggregate carrying amount of individually immaterial associates in the consolidated financial statements  3,737,967   3,648,004 
         
Aggregate amounts of the Company and its subsidiaries’ share of those associates        
Loss from continuing operations  (55,939)  (66,986)
Total comprehensive loss  (55,939)  (66,986)

As at 31 December 2014, the Company’s share of losses of an associate exceeded its interest in the associate and the unrecognized further losses amounted to RMB35 million (2013: nil).

Summarized financial information of material joint ventures adjusted for any differences in accounting policies and acquisition adjustment, and reconciliation to the carrying amount in the consolidated financial statements, are disclosed below:

  Shanghai Time Shipping  Jiangsu Nantong Power 
  2016  2015  2016  2015 
             
Gross amounts of joint ventures’            
             
Current assets  883,120   889,689   815,359   629,933 
Non-current assets  5,335,409   5,675,480   6,075,100   6,587,197 
Current liabilities  (3,177,881)  (3,506,971)  (2,600,258)  (1,583,902)
Non-current liabilities  (1,506,076)  (1,524,838)  (1,931,219)  (2,494,000)
Equity  1,534,572   1,533,360   2,358,982   3,139,228 
                 
Included in the above assets and liabilities:                
Cash and cash equivalents  203,018   197,894   96,501   144,001 
Current financial liabilities (excluding trade and other payables and provisions)  (2,681,857)  (3,027,511)  (2,270,601)  (954,448)
Non-current financial liabilities (excluding trade and other payables and provisions)  (1,506,075)  (1,524,837)  (1,931,219)  (2,494,000)
                 
Revenue  3,561,091   3,071,262   3,354,545   3,583,167 
Profit from continuing operations  1,212   1,646   608,660   897,066 
Total comprehensive income  1,212   1,646   608,660   897,066 
                 
Dividend declared by the joint ventures  -   225,000   694,453   - 
Dividend received in cash from the joint ventures  275,000   -   -   - 
Included in the above profit:                
Depreciation and amortization  340,826   339,204   393,221   390,262 
Interest income  985   812   2,313   3,436 
Interest expense  149,748   172,382   128,224   199,769 
Income tax expense  500   561   194,915   261,023 
                 
Reconciled to the interest in the joint venture:                
Gross amounts of net assets  1,534,572   1,533,360   2,358,982   3,139,228 
The Company and its subsidiaries’ effective interest  50%  50%  50%  50%
The Company and its subsidiaries’ share of net assets  767,286   766,680   1,179,491   1,569,614 
Impact of adjustments  18,324   18,324   -   - 
Carrying amount in the consolidated financial statements  785,610   785,004   1,179,491   1,569,614 
  Shanghai Time Shipping  Nantong Power 
  2014  2013  2014  2013 
             
Gross amounts of joint ventures’            
             
Current assets  764,956   1,155,333   639,132   282,990 
Non-current assets  6,010,052   6,307,235   6,706,755   6,346,736 
Current liabilities  (2,853,997)  (3,260,857)  (1,688,700)  (1,695,196)
Non-current liabilities  (1,939,297)  (2,282,333)  (3,415,025)  (3,338,530)
Equity  1,981,714   1,919,378   2,242,162   1,596,000 
                 
Included in the above assets and liabilities:                
Cash and cash equivalents  236,737   210,326   72,549   5,941 
Current financial liabilities (excluding trade and other payables and provisions)  (2,545,093)  (2,924,308)  (1,044,610)  (1,223,569)
Non-current financial liabilities (excluding trade and other payables and provisions)  (1,939,297)  (2,282,333)  (3,415,025)  (3,338,530)
                 
Revenue  4,270,631   3,638,341   3,429,254   - 
Profit / (loss) from continuing operations  62,335   (157,249)  646,163   - 
Total comprehensive income / (loss)  62,335   (157,249)  646,163   - 
                 
Included in the above profit:                
Depreciation and amortization  338,690   305,863   342,520   - 
Interest income  1,844   1,487   3,325   - 
Interest expense  210,461   219,974   260,486   - 
Income tax expense  7,797   318   262,335   - 
                 
Reconciled to the interest in the joint venture:                
Gross amounts of net assets  1,981,714   1,919,378   2,242,162   1,596,000 
The Company’s effective interest  50%   50%   50%   50% 
The Company’s share of net assets  990,857   959,689   1,121,081   798,000 
Impact of adjustments  18,324   18,324   -   - 
Carrying amount in the consolidated financial statements  1,009,181   978,013   1,121,081   798,000 
                 

Aggregate information of associates and a joint venture that are not individually material:

  2016  2015 
       
Aggregate carrying amount of individually immaterial associates and joint ventures in the consolidated financial statements  3,479,043   3,202,906 
Aggregate amounts of the Company and its subsidiaries’ share of those associates and joint ventures
Profit from continuing operations
  263,392   113,891 
Total comprehensive income  263,392   113,891 

As at 31 December 2016, the Company’s share of losses of an associate and a joint venture exceeded its interest in the associate and the joint venture and the unrecognized further losses amounted to RMB163 million (2015: RMB76 million).
F-49F-50
9Investments in subsidiaries and loans to subsidiaries

(a)9Investments in subsidiaries

As at 31 December 2014,2016, the investments in subsidiaries of the Company and its subsidiaries, all of which are unlisted, are as follows:

(i)Subsidiaries acquired through establishment or investment

  Country ofType ofRegistered
Business nature
and scope
 Percentage equity interest of held 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng International Power Fuel Limited Liability Company PRCheld directly
RMB
200,000,000
Wholesale of coal  100%  100%
Huaneng Shanghai Shidongkou Power Generation Limited Liability Company (“Shidongkou Power Company”)(i) PRCheld directly
RMB
1,179,000,000
Power generation  50%  100%
Huaneng Nantong Power Generation Limited Liability Company PRCheld directly
RMB
798,000,000
Power generation  70%  70%
Huaneng Yingkou Power Generation Limited Liability Company PRCheld directly
RMB
844,030,000
Production and sales of electricity and heat sale of coal ash and lime  100%  100%
Huaneng Hunan Xiangqi  Hydropower Co., Ltd. PRCheld directly
RMB
328,000,000
Construction, operation and management of hydropower and related projects  100%  100%
Huaneng Zuoquan Coal-fired  Power Generation Limited  Liability Company PRCheld directly
RMB
960,000,000
Construction, operation and management of power plants and related projects  80%  80%
Huaneng Kangbao Wind  Power Utilization Limited  Liability Company PRCheld directly
RMB
370,000,000
Construction, operation and management of wind power and related projects; solar power generation  100%  100%
Huaneng  Jiuquan Wind Power Generation Co., Ltd. PRCheld directly
RMB
2,600,000,000
Construction, operation and management of wind power generation and related projects  100%  100%
Huaneng Jiuquan II Wind Power Generation Co., Ltd. PRCheld directly
RMB
10,000,000
Construction, operation and management of wind power generation and related projects  100%  100%
Huaneng Wafangdian Wind Power Generation Co., Ltd. PRCheld directly
RMB
50,000,000
Construction, operation and management of wind power generation and related projects  100%  100%
Huaneng Changtu Wind Power  Generation Co., Ltd. PRCheld directly
RMB
50,000,000
Construction, operation and management of wind power generation and related projects  100%  100%
Huaneng Rudong Wind Power  Generation Co., Ltd. PRCheld directly
RMB
90,380,000
Construction and management of wind power generation projects  90%  90%
Huaneng Guangdong Haimen Port Limited Liability Company PRCheld directly
RMB
321,400,000
Loading warehousing and conveying services, providing facilities services  100%  100%
Huaneng Taicang Port Limited Liability Company PRCheld directly
RMB
555,800,000
Port development and construction, coal mixture, machinery leasing and repair  85%  85%
Huaneng Taicang Power Co., Ltd. PRCheld directly
RMB
804,146,700
Power generation  75%  75%

F-51
9Investments in subsidiaries (Continued)

(i)Subsidiaries acquired through establishment or investment (Continued)

  Country of Type ofRegistered
Business nature
and scope
 Percentage of equity interest held 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng Huaiyin II Power Limited Company PRCheld directly
RMB
930,870,000
Power generation  63.64%  63.64%
Huaneng Xindian Power Co., Ltd. PRCheld directly
RMB
465,600,000
Power generation  95%  95%
Huaneng Shanghai Combined Cycle Power Limited Liability Company PRCheld directly
RMB
699,700,000
Power generation  70%  70%
Huaneng Yumen Wind Power Generation Co., Ltd. PRCheld directly
RMB
719,170,000
Construction, operation and management of wind power generation and related projects  100%  100%
Huaneng Qingdao Co-generation Limited Liability Company PRCheld directly
RMB
214,879,000
Construction, operation and management of cogeneration power plants and related projects  100%  100%
Huaneng Tongxiang Combined Cycle Cogeneration Co., Ltd. PRCheld directly
RMB
300,000,000
Production and sales of electricity and heat; investment in related industries  95%  95%
Huaneng Eastern Yunnan Energy Mine Construction Co. Ltd. PRCheld indirectly
RMB
10,000,000
Constructing and operating of mine and related construction projects  100%  100%
Huaneng Nanjing Combined Cycle Cogeneration Co., Ltd. PRCheld directly
RMB
582,000,000
Power generation  60%  60%
Huaneng Shantou Haimen Power Limited Liability Company PRCheld directly
RMB
1,508,000,000
Construction, operation and management of power plants and related projects  80%  80%
Huaneng Chongqing Liangjiang Power Generation Limited Liability Company PRCheld directly
RMB
726,600,000
Construction, operation and management of natural gas power plants and related projects  90%  90%
Chongqing Huaqing Energy Co., Ltd. PRCheld indirectly
RMB
44,420,000
Thermal energy, cold energy installation of instrumentation, promotion service for energy saving technology  60%  60%
Huaneng Fuyuan Wind Power Generation Co., Ltd. PRCheld directly
RMB
157,290,000
Wind Power Project investment and management  100%  100%
Huaneng Panxian Wind Power Generation Co., Ltd. PRCheld directly
RMB
86,500,000
Construction and management of wind power plants and related projects  100%  100%
Huaneng Jiangxi Clean Energy Limited Liability Company PRCheld directly
RMB
5,000,000
Power generation and supply
Development, management and construction of clean energy project
  100%  100%
Huaneng Suzhou Combined Cycle Co-generation Co., Ltd. PRCheld directly
RMB
160,000,000
Construction and management of natural gas power plant and related projects  100%  100%
Huaneng Hunan Subaoding Wind Power Generation Co., Ltd. PRCheld directly
RMB
6,000,000
Construction and operation of wind power plants and related projects  100%  100%
F-52

9Investments in subsidiaries (Continued)

(i)Subsidiaries acquired through establishment or investment (Continued)

  Country ofType ofRegistered
Business nature
and scope
 Percentage of equity interest held 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng Suixian Jieshan Wind Power Generation Co., Ltd. PRCheld directly
RMB
96,500,000
Construction and operation of wind power plants and related projects  100%  100%
Huaneng Taiyuan Dongshan Combined Cycle Co-generation Co., Ltd. PRCheld directly
RMB
10,000,000
Construction and operation of power plants; thermal heating services  100%  100%
Jiangsu Huayi Energy Co., Ltd. PRCheld directly
RMB
5,000,000
Development of new energy; distribution of coal and coal products  100%  100%
HuanengXuzhou Tongshan Wind Power Co., Ltd. PRCheld directly
RMB
169,000,000
Wind power generation  70%  70%
Huaneng Nanjing Co-generation Co., Ltd PRCheld directly
RMB
300,000,000
Construction and operation of power plants; thermal heating services  70%  70%
Huaneng Hunan Guidong Wind Power Generation Co., Ltd. PRCheld directly
RMB
2,000,000
Construction and operation of wind power plants and related projects  100%  100%
Huaneng Nanjing Luhe Wind Power Generation Co., Ltd. PRCheld directly
RMB
5,000,000
Research and development of wind power technology, construction and operation of wind power plants  100%  100%
Huaneng Luoyuan Power Limited Liability Company PRCheld directly
RMB
1,000,000,000
Construction and operation of power plants and related projects  100%  100%
Huaneng Lingang (Tianjin) Gas Co-generation Co., Ltd. PRCheld directly
RMB
180,000,000
Power generation, installation and maintenance of power equipment  100%  100%
Huaneng Lingang (Tianjin) Heat Co-generation Co., Ltd. PRCheld indirectly
RMB
5,000,000
Thermal energy, cold energy
Plumbing pipe installation
  66%  66%
Huaneng Anhui Huaining Wind Power Generation Co., Ltd. PRCheld directly
RMB
80,000,000
Construction and operation of wind power plants and related projects  100%  100%
Huaneng Mianchi Co-generation Limited Liability Company PRCheld directly
RMB
570,000,000
Construction and operation of coal-fired plants and related projects  60%  60%
Huaneng Yingkou Xianrendao Co-generation Co., Ltd. PRCheld directly
RMB
277,690,000
Construction and operation of cogeneration power plants and related projects  100%  100%
Huaneng Nanjing Xingang Comprehensive. Energy Co., Ltd. PRCheld directly
RMB
10,000,000
Construction and operation of heat supply network and related projects  65%  65%
Huaneng Changxing Photovoltaic Power Limited Liability Company PRCheld directly
RMB
16,000,000
Construction and operation of distributed photovoltaic power generation and related projects  100%  100%
F-53

9Investments in subsidiaries (Continued)

(i)Subsidiaries acquired through establishment or investment (Continued)

  Country ofType of Registered 
Business nature
and scope
 
Percentage of equity interest
held
 
Name of subsidiary incorporationinterest held capital of operations Interest  Voting 
              
Huaneng Rudong Baxianjiao Offshore Wind Power Generation Co., Ltd PRCheld directly 
RMB
610,000,000
 Infrastructure construction of wind power plants  70%  70%
Huaneng Shanxi City of Science & Technology Comprehensive Energy Co., Ltd.  PRCheld directly 
RMB
100,000,000
 Power generation and supply  100%  100%
Huaneng Guilin Gas distributed energy Co., Ltd. PRCheld directly 
RMB
267,450,000
 Construction and operation of power plants and related projects  80%  80%
Huaneng (Dalian) Co-generation Co., Ltd. PRCheld directly 
RMB
12,500,000
 Construction and operation of cogeneration power plants and related projects  100%  100%
Huaneng Zhongxiang Wind Power Generation Co., Ltd. PRCheld directly 
RMB
10,000,000
 Construction and operation of wind power plants and related projects  100%  100%
Huaneng Guanyun Co-generation Co., Ltd. PRCheld directly 
RMB
15,000,000
 Construction and operation of cogeneration power plants and related projects  100%  100%
Huaneng International Power Hongkong Limited Company Hong Kongheld directly 100,000 Shares Construction and operation of power supply, coal project and related investment and financing businesses  100%  100%
TPG Singaporeheld indirectly 
S$
1,183,000,001
 Power generation and related by products, derivatives; developing power supply resources, operating electricity and power sales  100%  100%
TP Utilities Pte Ltd. Singaporeheld indirectly 
S$
255,500,001
 Provision of utility services  100%  100%
Huaneng Shanxi Taihang Power  Generation Limited Liability Company PRCheld directly 
RMB
1,086,440,000
 Pre service related to power generation  60%  60%
Huaneng Mianchi Clean Energy Limited Liability Company PRCheld directly 
RMB
10,000,000
 Power generation, new energy development and utilization  100%  100%
Huaneng Zhuolu Clean Energy Limited Liability Company PRCheld directly 
RMB
10,000,000
 Construction, operation and management of power plants and related projects  100%  100%
Huaneng Tongwei Wind Power Limited Liability Company PRCheld directly 
RMB
248,000,000
 Construction, operation and management of power plants and related projects  100%  100%
Huaneng Yizheng Power Generation Limited Liability Company PRCheld directly 
RMB
200,000,000
 Wind power station design, construction, management and maintenance  100%  100%
F-54

9Investments in subsidiaries (Continued)

(i)Subsidiaries acquired through establishment or investment (Continued)

  Country of Type ofRegistered
Business nature
and scope
 
Percentage of equity interest
held
 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng Yancheng Dafeng New Energy Power Generation Limited Liability Company PRCheld directly
RMB
5,000,000
Construction, operation and management of wind power, photovoltaic power plant  100%  100%
Huaneng Shanyin Power Generation Limited Liability Company PRCheld directly
RMB
1,573,000,000
Construction, operation and management of power plants and related projects  51%  51%
Huaneng Jiangsu Energy Sales Limited Liability Company PRCheld directly
RMB
200,000,000
Electric energy, heat energy distribution network, and water supply services; heating pipe network construction and operation  100%  100%
Huaneng Liaoning Energy Sales Limited Liability Company PRCheld directly
RMB
200,000,000
Electric energy, thermal energy and circulating hot water sales  100%  100%
Huaneng Guangdong Energy Sales Limited Liability Company PRCheld directly
RMB
200,000,000
Power supply, energy transmission and substation project contracting  100%  100%
Huaneng Suizhou Power Generation Limited Liability Company PRCheld directly
RMB
50,000,000
Construction, operation and management of power plants production and sales of electricity and heat  100%  100%
Huaneng Changle Photovoltaic Power Limited Liability Company PRCheld directly
RMB
10,000,000
Construction, operation and management of photovoltaic power plants and related projects  100%  100%
Huaneng Longyan Wind Power Generation Limited Liability Company PRCheld directly
RMB
10,000,000
Construction, operation and management of wind power plants and related projects  100%  100%
Huaneng Yunnan Malong Wind Power Generation Limited Liability Company PRCheld directly
RMB
10,000,000
Construction, operation and management of wind power plants and related projects  100%  100%
Huaneng Dandong Photovoltaic Power Limited Liability Company PRCheld directly
RMB
15,000,000
Construction, operation and management of photovoltaic power plants and related projects  100%  100%
Huaneng Dongguan Combined Cycle Co-generation Limited Liability Company PRCheld directly
RMB
10,000,000
Construction, operation and management of power plants and related projects production of electricity, heat production and sales  100%  100%
Huaneng Yangxi Photovoltaic Power Limited Liability Company PRCheld directly
RMB
62,500,000
Photovoltaic electric power production and sales  80%  80%

F-55
9Investments in subsidiaries (Continued)

(i)Subsidiaries acquired through establishment or investment (Continued)

  Country ofType ofRegistered
Business nature
and scope
 
Percentage of equity interest
held
 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng Chongqing Fengjie Wind Power Generation Limited Liability Company* PRCheld directly
RMB
10,000,000
Construction, operation and management of wind power, generation and related projects  100%  100%
Huaneng Changxing Hongqiao Photovoltaic Power Limited Liability Company* PRCheld directly
RMB
10,000,000
Construction, operation and management of Photovoltaic Power  100%  100%
Huaneng Jingxing Photovoltaic Power Limited Liability Company* PRCheld directly
RMB
100,000
Investment, construction, and management of photovoltaic power plants  100%  100%
Huaneng Wulatehouqi Clean Energy Limited Liability Company* PRCheld directly
RMB
100,000
Construction, operation and management of power plants and related projects  100%  100%
Huaneng Shanxi Energy Sales Limited Liability Company* PRCheld directly
RMB
200,000,000
Power supply and sales supply of heat, cold and water  100%  100%
Huaneng Chongqing Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Operation of natural gas, Electric energy and thermal energy sales  100%  100%
Huaneng Hunan Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Electric energy and thermal energy sales  100%  100%
Huaneng Jiangxi Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Construction, operation and management of heating and power supply facilities  100%  100%
Huaneng Hebei Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Construction, installation, maintenance and overhaul of heating and power supply facilities  100%  100%
Huaneng Henan Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Sales of power, heating and gas  100%  100%
Huaneng Handan Heating Limited Liability Company* PRCheld directly
RMB
100,000,000
Construction, operation and maintenance of heat source and pipe network  100%  100%
Huaneng (Huzhou Development Zone) Photovoltaic Power Limited Liability Company* PRCheld directly
RMB
10,000,000
Photovoltaic Power, power supply and sales  100%  100%
Huaneng (Fujian) Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Sales of power, heating and gas  100%  100%
Huaneng Hubei Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Sales of power, heating and gas  100%  100%
Huaneng (Sanming) Clean Energy Limited Liability Company* PRCheld directly
RMB
500,000
Construction, operation and management of wind power, photovoltaic power station and related projects  100%  100%


F-56
9Investments in subsidiaries (Continued)

(i)Subsidiaries acquired through establishment or investment (Continued)

  Country ofType ofRegistered
Business nature
and scope
 
Percentage of equity interest
held
 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng Yueyang Xingang Photovoltaic Power Limited Liability Company* PRCheld directly
RMB
16,000,000
Construction, operation and management of electric power project, development and utilization of clean energy  60%  60%
Huaneng Shanghai Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Power supply, and technology service, consulting, transfer in energy conservation and environment protection field  100%  100%
Huaneng Yushe Photovoltaic Power Limited Liability Company* PRCheld directly
RMB
10,000,000
Production and supply of electricity power  100%  100%
Huaneng Anhui Energy Sales Limited Liability Company* PRCheld directly
RMB
210,000,000
Sales of power, heating and gas  100%  100%
Huaneng (Shanghai) Power Maintenance Limited Liability Company* PRCheld directly
RMB
200,000,000
Construction and repair of electric power facilities  100%  100%

*These companies were newly established in 2016.

F-57

9Investments in subsidiaries (Continued)

(ii)Subsidiaries acquired from business combinations under common control

  Country ofType ofRegistered
Business nature
and scope
��
Percentage of equity interest
held
 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng (Suzhou Industrial Park) Power Generation Co., Ltd. PRCheld directly
RMB
632,840,000
Power generation  75%  75%
Huaneng Qinbei Power Co., Ltd.  PRCheld directly
RMB
1,540,000,000
Power generation  60%  60%
Huaneng Yushe Power Generation Co., Ltd.  PRCheld directly
RMB
615,760,000
Power generation  60%  60%
Huaneng Hunan Yueyang Power Generation Limited Liability Company  PRCheld directly
RMB
1,935,000,000
Power generation  55%  55%
Huaneng Chongqing Luohuang Power Generation Limited Liability Company(“Luohuang Power”) PRCheld directly
RMB
1,748,310,000
Power generation  60%  60%
Huaneng Pingliang Power Generation Co., Ltd.  PRCheld directly
RMB
924,050,000
Power generation  65%  65%
Huaneng Nanjing Jinling Power Co., Ltd. (“Jinling Power”)  PRCheld directly
RMB
1,513,136,000
Power generation  60%  60%
Huaneng Qidong Wind Power Generation Co., Ltd.  PRCheld directly
RMB
391,738,500
Development of wind power project, production and sales of electricity  65%  65%
Tianjin Huaneng Yangliuqing Co-generation Limited Liability Company(“Yangliuqing Cogeneration”)  PRCheld directly
RMB
1,537,130,909
Power generation, heat supply, facilities installation, maintenance and related services  55%  55%
Huaneng Beijing Co-generation Limited Liability Company(“Beijing Cogeneration”) (ii)  PRCheld directly
RMB
3,702,090,000
Construction and operation of power plants and related construction projects  41%  66%
Huaneng Wuhan Power Generation Co., Ltd. (“Wuhan Power”)  PRCheld directly
RMB
1,445,754,800
Power generation comprehensive utilization of fly ash  75%  75%
Huaneng Anyuan Power Generation Co., Ltd. (“Anyuan Power”)  PRCheld directly
RMB
1,175,117,300
Construction and operation of power plants and related construction projects  100%  100%
Huaneng Hualiangting Hydropower Co., Ltd. (“Hualiangting Hydropower”)  PRCheld directly
RMB
50,000,000
Generation and transfer of power supply, water supply (irrigation)  100%  100%
Huaneng Chaohu Power Generation Co., Ltd. (“Chaohu Power”) (iii)  PRCheld directly
RMB
800,000,000
Construction and operation of power plants and related construction projects  60%  70%
Huaneng Jingmen Thermal Power Co., Ltd. (“Jingmen Thermal Power”)  PRCheld directly
RMB
780,000,000
General business projects: thermal power, power development, power services  100%  100%
F-58

9Percentage of equity interest held
Name of subsidiaryCountry of incorporationType of legal entityRegistered capitalBusiness nature and scope of operationsDirect
Indirect1
Huaneng (Suzhou Industrial Park) Power Generation Co., Ltd.PRCLimited liability companyRMB 632,840,000Power generation75%-
Huaneng Qinbei Power Co., Ltd. (“Qinbei Power Company”)PRCLimited liability companyRMB 1,540,000,000Power generation60%-
Huaneng Yushe Power Generation Co., Ltd.PRCLimited liability companyRMB 615,760,000Power generation60%-
Huaneng Hunan Yueyang Power Generation Limited Liability Company (“Yueyang Power Company”)PRCLimited liability companyRMB 1,935,000,000Power generation55%-
Huaneng Chongqing Luohuang Power Generation Limited Liability Company(“Luohuang Power Company”)PRCLimited liability companyRMB 1,658,310,000Power generation60%-
Huaneng Pingliang Power Generation Co., Ltd.PRCLimited liability companyRMB 924,050,000Power generation65%-
Huaneng Nanjing Jinling Power Co., Ltd. (“Jinling Power Company”)PRCLimited liability companyRMB 1,513,136,000Power generation60%-
Huaneng Qidong Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 269,600,000Development of wind power project, production and sales of electricity65%-
Tianjin Huaneng Yangliuqing Co-generation Limited Liability Company (“Yangliuqing Cogeneration”)PRCLimited liability companyRMB 1,537,130,909Power generation, heat supply, facilities installation, maintenance and related services55%-
Huaneng Beijing Co-generation Limited Liability Company (i) (“Beijing Cogeneration”)PRCLimited liability companyRMB 1,600,000,000Construction and operation of power plants and related construction projects41%-Investments in subsidiaries (Continued)
 
1 The indirect percentage of equity interest held represents the effective ownership interest of the Company and its subsidiaries.
(ii)Subsidiaries acquired from business combinations under common control (Continued)

  Country of Type ofRegistered
Business nature
and scope
 
Percentage of equity interest
held
 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Enshi Qingjiang Dalongtan Hydropwer Development Co., Ltd. (“Dalongtan Hydropower”) PRCheld directly
RMB
76,000,000
Hydropower development, production and management of electric power urban water supply  97%  97%
Huaneng Suzhou Thermal Power Co., Ltd. (“Suzhou Thermal Power”) (iv) PRCheld directly
RMB
240,000,000
Power generation, steam production; mechanical and electrical equipment, pipeline installation, maintenance services; hot water, fly ash sales  53.45%  100%
Huaneng Hainan Power Inc. (“Hainan Power”) (v) PRCheld directly
RMB
1,326,419,587
Construction power plants, new energy development, power plant engineering and equipment maintenance services  91.80%  91.80%
Huaneng Ruijin Power Generation Co., Ltd. (“Ruijin Power Generation”) PRCheld directly
RMB
536,923,299
Construction and operation of power plants and related construction projects  100%  100%
Huaneng Yingcheng Thermal Power Co., Ltd. (“Yingcheng Thermal Power”) PRCheld directly
RMB
650,000,000
Construction and operation of power plants and related construction projects  100%  100%


The subsidiaries above and the Company are all controlled by Huaneng Group before and after the acquisitions.

(iii)Subsidiaries acquired from business combinations not under common control

  Country ofType ofRegistered
Business nature
and scope
 
Percentage of equity interest
held
 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng Weihai Power Limited Liability Company(“Weihai Power”) PRCheld directly
RMB
1,822,176,621
Power generation  60%  60%
Huaneng Huaiyin Power Limited Company PRCheld directly
RMB
265,000,000
Power generation  100%  100%
Huade County Daditaihong Wind Power Utilization Limited Liability Company PRCheld directly
RMB
196,400,000
Wind power development and utilization  100%  100%
Huaneng Zhanhua Co-generation Limited Liability Company PRCheld directly
RMB
190,000,000
Production and sales of electricity and steam  100%  100%
Shandong Hualu Sea Transportation Limited Company PRCheld directly
RMB
100,000,000
Cargo transportation along domestic coastal areas  53%  53%
Huaneng Qingdao Port Limited Company PRCheld directly
RMB
219,845,000
Loading and conveying warehousing (excluding dangerous goods), conveying, supply of water carriage materials  51%  51%
Huaneng (Fujian) Harbour Limited Company PRCheld directly
RMB
652,200,000
Port management, cargo loading, water transport material supply  51%  51%
 

F-50
F-59

9Investments in subsidiaries and loans to subsidiaries (continued)(Continued)

(a)Investments in subsidiaries (continued)

(ii)(iii)Subsidiaries acquired from business combinations not under common control or acquired through other ways(Continued)

Percentage of equity interest held
Name of subsidiaryCountry of incorporationType of legal entityRegistered capitalBusiness nature and scope of operationsDirect
Indirect1
Huaneng Weihai Power Limited Liability Company(“Weihai Power Company”)PRCLimited liability companyRMB 1,781,838,288Power generation60%-
Huaneng Taicang Power Co., Ltd.PRCLimited liability companyRMB 804,146,700Power generation75%-
Huaneng Huaiyin Power Power Limited CompanyPRCLimited liability companyRMB 265,000,000Power generation100%-
Huaneng Huaiyin II Power Limited CompanyPRCLimited liability companyRMB 930,870,000Power generation63.64%-
Huaneng Xindian Power Co., Ltd.PRCLimited liability companyRMB 465,600,000Power generation95%-
Huaneng Shanghai Combined Cycle Power Limited Liability CompanyPRCLimited liability companyRMB 699,700,000Power generation70%-
Huaneng International Power Fuel Limited Liability CompanyPRCLimited liability companyRMB 200,000,000Wholesale of coal100%-
Huaneng Shanghai Shidongkou Power Generation Limited (ii) (“Shidongkou Power Company”)PRCLimited liability companyRMB 990,000,000Power generation50%-
Huade County Daditaihong Wind Power Utilization Limited Liability CompanyPRCLimited liability companyRMB 5,000,000Wind power development and utilization100%-
Huaneng Nantong Power Generation Limited Liability CompanyPRCLimited liability companyRMB 798,000,000Power generation70%-
Huaneng Yingkou Port Limited Liability Company (iii) (“Yingkou Port”)PRCLimited liability companyRMB 720,235,000Loading and conveying service50%-
Huaneng Hunan Xiangqi Hydropower Co., Ltd.PRCLimited liability companyRMB 328,000,000Construction, operation and management of hydropower and related projects100%-
Huaneng Yingkou Power Generation Limited Liability CompanyPRCLimited liability companyRMB 844,030,000Production and sales of electricity and heat sale of coal ash and lime100%-
Huaneng Zuoquan Coal-fired Power Generation Limited Liability CompanyPRCLimited liability companyRMB 960,000,000Construction, operation and management of power plants and related projects80%-
Huaneng Kangbao Wind Power Utilization Limited Liability CompanyPRCLimited liability companyRMB 370,000,000Construction, operation and management of wind power generation and related projects100%-
Huaneng Jiuquan Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 1,360,170,000Construction, operation and management of wind power generation and related projects100%-


  Country of Type of Registered 
Business nature
and scope
 Percentage of equity interest held    
Name of subsidiary incorporationinterest held capital of operations Interest  Voting 
              
Fujian Yingda Property Development Limited Company PRCheld indirectly 
RMB
50,000,000
 Real estate development leasing, real estate agency services, warehousing, loading and conveying  51%  100%
Fujian Xinhuanyuan Industrial Limited Company PRCheld indirectly 
RMB
93,200,000
 Mineral water production and sale  51%  100%
Huaneng Yunnan Diandong Energy Limited Liability Company (“Diandong Energy”) PRCheld directly 
RMB
3,769,140,000
 Power generation and coal exploitation  100%  100%
Yunnan Diandong Yuwang Energy Limited Company (“Diandong Yuwang”) PRCheld directly 
RMB
1,700,740,000
 Power generation and coal exploitation  100%  100%
Huaneng Suzihe Hydropower Development Limited Company PRCheld directly 
RMB
50,000,000
 Hydropower, aquaculture, agriculture irrigation  100%  100%
Enshi City Mawei Valley Hydropower Development Co., Ltd. PRCheld directly 
RMB
101,080,000
 Hydro-resource development, hydropower, aquaculture  100%  100%
Kaifeng Xinli Power Generation Co., Ltd. PRCheld indirectly 
RMB
146,920,000
 Power generation  60%  100%
Huaneng Luoyang Co-generation Limited Liability Company PRCheld directly 
RMB
600,000,000
 Production and sales of electricity and heat to the electricity and heat networks sales of ancillary products of electricity and heat generation  80%  80%
Huaneng Jinling Combined Cycle Cogeneration Co., Ltd. (“Jinling CCGT”) (vi) PRCheld directly 
RMB
356,350,000
 Power generation  51%  72%
Huaneng Zhumadian Wind Power Generation Co., Ltd.  PRCheld directly 
RMB
30,000,000
 Wind power generation  90%  90%
SinoSing Power Singaporeheld directly 
US$
1,476,420,585
 Investment holding  100%  100%
Tuas Power Singaporeheld indirectly S$ 1,433,550,000 Electricity and gas supply and investment holding  100%  100%
Tuas Power Supply Pte Ltd. Singaporeheld indirectly 
S$
500,000
 Power sales  100%  100%
TP Asset Management Pte Ltd.  Singaporeheld indirectly 
S$
2
 Render of environment engineering services  100%  100%
TPGS Green Energy Pte Ltd. Singaporeheld indirectly 
S$
1,000,000
 Provision of utility services  75%  75%
New Earth Pte Ltd. Singaporeheld indirectly 
S$
10,111,841
 Consultancy in waste recycling  100%  100%
New Earth Singapore Pte Ltd. Singaporeheld indirectly 
S$
17,816,050
 Industrial waste management and recycling  100%  100%
Xuzhou Tongshan District Xiehe Wind Power Generation Limited Liability Company . (“Tongshan Xiehe Wind Power Generation”) (Note 39) PRCheld indirectly 
RMB
3,000,000
 Wind power generation  100%  100%
Luoyang Yangguang Co-generation Limited Liability Company(“Yangguang Cogeneration”) (Note 39) PRCheld indirectly 
RMB
250,000,000
 Production and supply of electric and heating power  100%  100%
F-51F-60


9Investments in subsidiaries and loans to subsidiaries (continued)

(a)Investments in subsidiaries (continued)

(ii)Subsidiaries acquired from business combinations not under common control or acquired through other ways (continued)

Percentage of equity interest held
Name of subsidiaryCountry of incorporationType of legal entityRegistered capitalBusiness nature and scope of operationsDirect
Indirect1
Huaneng Jiuquan II Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 10,000,000Construction, operation and management of wind power generation and related projects100%-
Huaneng Yumen Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 349,580,000Construction, operation and management of wind power generation and related projects100%-
Huaneng Wafangdian Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 50,000,000Construction, operation and management of wind power generation and related projects100%-
Huaneng Changtu Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 50,000,000Construction, operation and management of wind power generation and related projects100%-
Huaneng Rudong Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 90,380,000Construction and management of wind power generation projects90%-
Huaneng Guangdong Haimen Port Limited Liability CompanyPRCLimited liability companyRMB 93,000,000Loading warehousing and conveying services, providing facilities services100%-
Huaneng Taicang Port Limited Liability CompanyPRCLimited liability companyRMB 428,000,000Port development and construction, coal mixture, machinery leasing and repair85%-
Kaifeng Xinli Power Generation Co., Ltd.PRCLimited liability companyRMB 146,920,000Power generation-60%
Huaneng Zhanhua Cogeneration Limited Liability CompanyPRCLimited liability companyRMB 190,000,000Production and sales of electricity and steam100%-
Shandong Hualu Sea Transportation Limited Company (“Hualu Sea Transportation”)PRCLimited liability companyRMB 100,000,000Cargo transportation along domestic coastal areas53%-
Huaneng Qingdao Port Limited Company(“Qingdao Port”)PRCLimited liability companyRMB 219,845,000Loading and conveying warehousing (excluding dangerous goods), conveying, supply of water carriage materials51%-
Huaneng Qingdao Co-generation Limited Liability CompanyPRCLimited liability companyRMB 214,879,000Construction, operation and management of cogeneration Power plants and related projects, production and sales of electricity and heat100%-
Huaneng Yunnan Diandong Energy Limited Company(“Diandong Energy”)PRCLimited liability companyRMB 3,543,140,000Power generation and coal exploitation100%-
Huaneng Yunnan Diandong Yuwang Energy Limited Company  (“Diandong Yuwang”)PRCLimited liability companyRMB 1,626,740,000Power generation and coal exploitation100%-

F-52

9Investments in subsidiaries (Continued)

Note:

(i)According to its article of association, the other shareholder who holds the remaining equity interests of Shidongkou Power Company entrusts the Company to exercise all its voting rights in relation to the operation and loans to subsidiaries (continued)financial policies of Shidongkou Power Company. Accordingly, the Company has control over Shidongkou Power Company.

(a)Investments in subsidiaries (continued)

(ii)Subsidiaries acquired from business combinations not under common control or acquired through other ways (continued)

Percentage of equity interest held
Name of subsidiaryCountry of incorporationType of legal entityRegistered capitalBusiness nature and scope of operationsDirect
Indirect1
Huaneng (Fujian) Harbour Limited Company(“Luoyuanwan Harbour”)PRCLimited liability companyRMB 652,200,000Port management, cargo loading, water transport material supply51%-
Huaneng Suzihe Hydropower Development Limited CompanyPRCLimited liability companyRMB 50,000,000Hydropower, aquaculture, agriculture irrigation100%-
Fujian Yingda Property Development Limited CompanyPRCLimited liability companyRMB 50,000,000Real estate development, leasing, real estate agency services, warehousing, loading and conveying-51%
Fujian Xinhuanyuan Industrial Limited CompanyPRCLimited liability companyRMB 93,200,000Mineral water production and sale-51%
Enshi City Mawei Valley Hydropower Development Co., Ltd. (“Enshi Hydropower”)PRCLimited liability companyRMB 101,080,000Hydro-resource development, hydropower, aquaculture100%-
Huaneng Tongxiang Combined Cycle Cogeneration Co., Ltd.PRCLimited liability companyRMB 300,000,000Investment in related industries95%-
Huaneng Nanjing Combined Cycle Cogeneration Co., LtdPRCLimited liability companyRMB 582,000,000Power generation60%-
Huaneng Jinling Combined Cycle Cogeneration Co., Ltd (iv) (“Jinling CCGT”)PRCLimited liability companyRMB 356,350,000Power generation51%-
Huaneng Fuyuan Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 10,000,000Wind Power Project investment and management100%-
Huaneng Panxian Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 10,000,000Construction and management of wind power plants and related projects100%-
Huaneng Luoyang Cogeneration Limited Liability CompanyPRCLimited liability companyRMB 600,000,000Production and sales of electricity and heat to the electricity and heat networks sales of ancillary products of electricity and heat generation80%-
Huaneng Jiangxi Clean Energy Limited Liability CompanyPRCLimited liability companyRMB 5,000,000Development, management and construction of clean energy project100%-
Huaneng HunanSubaoding Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 6,000,000Construction and operation of wind power plants and related projects100%-
Huaneng Suixian Jieshan Wind Power Generation Co., Ltd.PRCLimited liability companyRMB 2,000,000Construction and operation of wind power plants and related projects100%-

F-53
9Investments in subsidiaries and loans to subsidiaries (continued)

(a)Investments in subsidiaries (continued)

(ii)Subsidiaries acquired from business combinations not under common control or acquired through other ways (continued)

Percentage of equity interest held
Name of subsidiaryCountry of incorporationType of legal entityRegistered capitalBusiness nature and scope of operationsDirect
Indirect1
Huaneng Taiyuan Dongshan Combined Cycle Co-generation Co., Ltd.PRCLimited liability companyRMB 10,000,000Construction and operation of power plants; thermal heating services100%-
Huaneng Suzhou Combined Cycle Co-generation Co., Ltd.PRCLimited liability companyRMB 60,000,000Construction and management of natural gas power plant and related projects;100%-
Huaneng Shantou Haimen Power Limited Liability CompanyPRCLimited liability companyRMB 1,508,000,000construction, operation and management of power plants and related projects80%-
Huaneng Chongqing Liangjiang Power Generation Limited Liability CompanyPRCLimited liability companyRMB 360,000,000construction, operation and management of natural gas power plants and related projects100%-
Jiangsu Huayi Energy Co., Ltd.PRCLimited liability companyRMB 5,000,000Development of new energy distribution of coal and coal products100%-
Huaneng Xuzhou Tongshan Wind Power Co., Ltd.PRCLimited liability companyRMB 169,000,000Wind power generation70%-
Huaneng Eastern Yunnan Energy Mine Construction Co., Ltd.PRCLimited liability companyRMB 10,000,000Constructing and operating of mine and related construction projects-100%
Huaneng Zhumadian Wind Power Generation Co., Ltd. (Zhumadian Wind Power)*
PRCLimited liability companyRMB 30,000,000Wind power generation90%-
Huaneng Nanjing Co-generation Limited Liability Company**PRCLimited liability companyRMB 300,000,000Construction and operation of power plants and related projects70%-
Huaneng Hunan Guidong Wind Power Generation Co., Ltd. **
PRCLimited liability companyRMB 2,000,000Construction and operation of wind power plants and related projects100%-
Huaneng Nanjing  Luhe Wind Power Generation Co., Ltd.**PRCLimited liability companyRMB 5,000,000Research and development of wind power technology, construction and operation of wind power plants100%-
Huaneng Luoyuan Power Limited Liability Company**PRCLimited liability companyRMB 1,000,000,000Construction and operation of power plants and related projects100%-
Huaneng Lingang(Tianjin) Gas Co-generation Co., Ltd. **PRCLimited liability companyRMB 180,000,000Power generation, installation and maintenance of power equipment100%-
Huaneng Anhui Huaining Wind Power Generation Co., Ltd. **PRCLimited liability companyRMB 6,000,000Construction and operation of wind power plants and related projects100%-
Huaneng Mianchi Co-generation Limited Liability Company**PRCLimited liability companyRMB 570,000,000Construction and operation of coal-fired plants and related projects60%-
Huaneng Yingkou Xianrendao Co-generation Co., Ltd. **PRCLimited liability companyRMB 277,690,000Construction and operation of wind power plants and related projects100%-

F-54

9Investments in subsidiaries and loans to subsidiaries (continued)

(a)Investments in subsidiaries (continued)

(ii)Subsidiaries acquired from business combinations not under common control or acquired through other ways (continued)

Percentage of equity interest held
Name of subsidiaryCountry of incorporationType of legal entityRegistered capitalBusiness nature and scope of operationsDirect
Indirect1
Huaneng Nanjing Xingang Heating  Co., Ltd. **PRCLimited liability companyRMB 10,000,000Construction and operation of heat supply network and related projects65%-
Huaneng Changxing Guangfu  Power Limited Liability Company**PRCLimited liability companyRMB 16,000,000Construction and operation of distributed photovoltaic power generation and related projects100%-
Huaneng Rudong Baxianjiao Offshore Wind Power Generation Co., Ltd.  **PRCLimited liability companyRMB 610,000,000Infrastructure construction of wind power plants70%-
Huaneng Shanxi City of Science & Technology Project Management Co., Ltd **PRCLimited liability companyRMB 10,000,000Construction and operation of supporting power project100%-
Huaneng Guilin Gas distributed energy Co., Ltd. **PRCLimited liability companyRMB 267,450,000Construction and operation of power plants and related projects80%-
Huaneng Zhongxiang Wind Power Generation Co., Ltd **.PRCLimited liability companyRMB 10,000,000Construction and operation of wind power plants and related projects100%-
Huaneng (Dalian) Co-generation Co., Ltd **PRCLimited liability companyRMB 12,500,000Construction and operation of cogeneration power plants and related projects100%-
Huaneng Guanyun Co-generation Co., Ltd.  **PRCLimited liability companyRMB 15,000,000Construction and operation of cogeneration power plants and related projects100%-
Huaneng Power International Hongkong Limited CompanyHong KongLimited liability company100,000 sharesConstruction and operation of Power supply, coal project and related investment and financing businesses100%-
SinoSing PowerSingaporeLimited liability companyUS$ 1,476,420,585Investment holding100%-
Tuas PowerSingaporeLimited liability companyS$ 1,433,550,000Electricity and gas supply and investment holding-100%
Tuas Power Supply Pte Ltd.SingaporeLimited liability companyS$ 500,000Power sales-100%
TPGSingaporeLimited liability companyS$ 1,183,000,001Power generation and related by products, derivatives; developing power supply resources, operating electricity and power sales-100%
TP Asset Management Pte Ltd.SingaporeLimited liability companyS$ 2Render of environment engineering services-100%
TPGS Green Energy Pte Ltd.SingaporeLimited liability companyS$ 1,000,000Provision of utility services-75%
New Earth Pte Ltd.SingaporeLimited liability companyS$ 10,111,841Consultancy in waste recycling-100%
New Earth Singapore Pte Ltd.SingaporeLimited liability companyS$ 17,816,050Industrial waste management and recycling-100%

F-55

9Investments in subsidiaries and loans to subsidiaries (continued)

(a)Investments in subsidiaries (continued)

(ii)Subsidiaries acquired from business combinations not under common control or acquired through other ways (continued)

Percentage of equity interest held
Name of subsidiaryCountry of incorporationType of legal entityRegistered capitalBusiness nature and scope of operationsDirect
Indirect1
TP Utilities Pte Ltd.SingaporeLimited liability companyS$ 160,000,001Provision of utility services-100%
Chongqing Huaqing Energy Co., Ltd.PRCLimited liability companyRMB 44,420,000Thermal energy, cold energy installation of instrumentation, promotion service for energy saving technology-60%

1The indirect percentage of equity interest held represents the effective ownership interest of the Company and its subsidiaries.

*In 2014, the Company acquired 90% equity interests of Zhumadian Wind Power. See Note 39 for more details of the acquisition.

**These companies were newly established in 2014.

Note:

(i)Pursuant to an agreement entered into between the Company and another shareholder, the Company is entrusted to vote the 25% voting rights held by the other shareholder as long as the Company remains as the largest shareholder of Beijing Cogeneration. Thus, the Company has majority voting rights required by the article of association to control the operation and financial policies of Beijing Cogeneration. Accordingly, the Company has control over Beijing Cogeneration.

(ii)According to its article of association, the other shareholder who holds the remaining equity interests of Shidongkou Power Company entrusts the Company to exercise all its voting rights in relation to the operation and financial policies of Shidongkou Power Company. Accordingly, the Company has control over Shidongkou Power Company.

(iii)Pursuant to the shareholders’ agreement, the other shareholder who holds the remaining shares of Yingkou Port entrusts the Company to exercise all its voting rights at shareholders’ meetings in relation to the operation and financial policies. Accordingly, the Company has control over Yingkou Port.

(iv)According to the voting in concert agreement entered into between the Company and one of the non-controlling shareholdersshareholder with 21%10% equity interests in Jinling CCGT,Chaohu Power, the shareholder agreed to vote the same in respect of significant financial and operating decisions made by the Company. As a result, the Company has control over Chaohu Power.

(iv)According to the voting in concert agreement entered into between the Company and the other two shareholders in Suzhou Thermal Power, the shareholders agreed to vote the same in respect of significant financial and operating decisions made by the Company. As a result, the Company has control over Suzhou Thermal Power.

(v)Pursuant to the board resolution of Hainan Power on 28 July 2016, Huaneng Wenchang Wind Power Generation Co., Ltd. (“Wenchang Power”), a fully held subsidiary of Hainan Power, was dissolved in November 2016. At the date of dissolution, the net asset of Wenchang Power was RMB1 million.

(vi)According to the voting in concert agreement entered into between the Company and one shareholder with 21% equity interests in Jinling CCGT, the shareholder agreed to vote the same in respect of significant financial and operating decisions made by the Company under the circumstances that its legitimate entitlements are guaranteed. As a result, the Company has control over Jinling CCGT.

(v)(vii)According toIn 2016, the equity transfer agreementCompany accounted for the investment in Shanxi Xiaoyi Economic Development Zone Huaneng Energy Service Co. Ltd. (“Shanxi Xiaoyi Energy”)  as a joint venture. On 15 February 2017, the Company entered into an agreement with a third party, the Company transferred itsother shareholder with 49% equity interests in Luoyuanwan Harbour. UponShanxi Xiaoyi Energy who agreed to vote the completionsame in respect of significant financial and operating decisions made by the transaction, the Company’s percentage of equity interest held and voting rights on Luoyuanwan Harbour changed from 100% to 51% andCompany. As a result, the Company retainshas control over Luoyuanwan Harbour. Please refer to note 19 for more details.

F-56
9Investments in subsidiaries and loans to subsidiaries (continued)

(a)Investments in subsidiaries (continued)

(ii)Subsidiaries acquired from business combinations not under common control or acquired through other ways (continued)Shanxi Xiaoyi Energy since February 2017.

For the information of material non-controlling interestinterests (“NCI”), please refer to Note 40.

In 2014, due to the continuous losses in a number of subsidiaries, impairment loss of RMB 2.70 billion was recorded for the investment in the subsidiaries at company level. (2013: RMB3.23 billion).

F-61
(b)Loans to subsidiaries

As at 31 December 2014, the unsecured current portion of loans to subsidiaries amounted to approximately RMB24.09 billion (2013: RMB26.95 billion) with annual interest rates ranging from 5.32% to 6.60% (2013: from 5.58% to 6.00%). The unsecured non-current portion loans to subsidiaries amounted to approximately RMB3.48 billion (2013: RMB1.79 billion) with annual interest rates ranging from 5.20% to 6.52% (2013: 3.72% to 5.54%). Since all interest rates were similar to the interest rates offered by the market, the carrying value of the loans to subsidiaries approximated their fair value.

10
Available-for-sale financial assets

Available-for-sale financial assets include the following:

 As at 31 December As at 31 December 
 2014  2013  2016  2015 
Listed securities (Fair value measurement)      
257.56 million shares (representing 1.56% shareholding) of Yangtze Power  2,748,162   1,627,777 
Listed security (Fair value measurement)      
Yangtze Power  1,820,255   3,492,510 
Bank of Jiangsu  458   - 
Subtotal  1,820,713   3,492,510 
                
Unlisted securities (Cost measurement)                
10% of Jinxing Energy  531,274   431,274 
10% of Shanxi Xishan Jinxing Energy Co., Ltd.  531,274   531,274 
9.09% of Ganlong Double-track Railway Co., Ltd.  1,000,000   1,000,000   1,000,000   1,000,000 
Others  53,941   52,113   54,045   54,079 
        
  1,585,215   1,483,387 
        
Subtotal  1,585,319   1,585,353 
Total  4,333,377   3,111,164   3,406,032   5,077,863 
        

There were no impairment provisions provided on available-for-sale financial assets in 2014, 20132016, 2015 and 2012.2014.

In 2016, the Company disposed 113.78 million shares of Yangtze Power with cash consideration of RMB1.474 billion received and recognized investment income of RMB933 million. Other comprehensive income of RMB742 million was reclassified to profit or loss.
F-62

11Land use rights

DetailsThe movements in the carrying amount of land use rights during the years are as follows:

  As at 31 December 
  2014  2013 
       
Outside Hong Kong, held on:      
Leases of between 10 to 50 years  4,913,119   4,449,886 
Leases of over 50 years  40,725   41,399 
         
Total  4,953,844   4,491,285 
         

F-57

11Land use rights (continued)
  2016  2015 
       
Beginning of the year      
Cost  10,059,872   6,482,189 
Accumulated amortization  (1,530,972)  (1,309,076)
Accumulated impairment losses  (215,134)  (219,269)
Net book value  8,313,766   4,953,844 
         
Movement:        
Business combination (Note 39)  61,027   2,996,440 
Addition  364,280   600,693 
Amortization charge for the year  (242,400)  (227,078)
Impairment charge for the year (Note 7)  (51,981)  - 
Disposals and transfer out  (1,969)  (6,036)
Currency translation differences  13,624   (4,097)
         
End of the year  8,456,347   8,313,766 
Cost  10,525,537   10,059,872 
Accumulated amortization  (1,792,367)  (1,530,972)
Accumulated impairment losses  (276,823)  (215,134)
         
Net book value  8,456,347   8,313,766 

All the lands located in the PRC and Singapore are leased from respective governments according to corresponding regulations applied across the countries. The Company and its subsidiaries will renew the leases according to the operation requirements of the Company and its subsidiaries and the related regulations of respective countries.

Land use rights without ownership certificate

As at 31 December 2016, the Company and its subsidiaries were in the process of applying for the ownership certificate for certain land use right with an aggregate net book value of RMB792 million (2015: RMB960 million). The management are of the opinion that the Company and its subsidiaries are entitled to the lawful and valid occupation and use of the above mentioned land.


F-63

12Power generation license

The movements in the carrying amount of power generation license during the years are as follows:

 2014  2013  2016  2015 
            
Beginning of the year  3,837,169   4,084,506   3,679,175   3,720,959 
                
Movement:                
Opening net book value  3,837,169   4,084,506 
Currency translation differences  (116,210)  (247,337)  170,024   (41,784)
                
Closing net book value  3,720,959   3,837,169 
        
End of the year  3,720,959   3,837,169   3,849,199   3,679,175 
        

The Company and its subsidiaries acquired the power generation license in connection with the acquisition of Tuas Power. The power generation license was initially recognized at fair value at the acquisition date. Tuas Power operates power plants in Singapore pursuant to the license granted by the Energy Market Authority for a period of 30 years from 2003 until 2032. The license was extended to 2044 during 2011 with minimal costs and is subject to further renewal. The Company and its subsidiaries expect that the applicable rules and regulations surrounding the renewal can be complied with based on the current market framework. The Company and its subsidiaries assessed the useful life of the power generation license at 31 December 20142016 as indefinite and therefore the license is not amortized.

Impairment test of power generation license

Power generation license belongs to and has been assigned to Tuas Power, a CGU. The recoverable amount of the CGU is determined based on value-in-use calculation. Management prepared the impairment model based on budget approved by the Board and various factors, such as inflation, power demand and other factors as well as the terminal value.

Key assumptions used for value-in-use calculation:

Management has assessed that amongst all assumptions used in the value-in-use calculations,one of the most sensitive key assumptionassumptions is the discount rate which was arrived at based on weighted average cost of capital. The discount rate applied in determining the recoverable amounts of the CGU was 7.29% (2013: 7.05%7.54% (31 December 2015: 7.62%). An absolute increase in the discount rate of 0.5% (2013:(31 December 2015: 0.5%) would result in approximately RMB1,540RMB1,899 million (2013: RMB1,599(31 December 2015: RMB1,704 million) decrease in the recoverable amount of the CGU.

F-58
12Power generation license (continued)

Impairment test of power generation license (continued)

Key assumptions used for value-in-use calculation (continued):

Other key assumptions include projection of its business performance based on estimation of futuregross margin from electricity tariffs,sold, volume of electricity sold fuel prices and other operating expenses, which are largely based on a combination of past performance of the CGU, its expectation of market developments and consistency with reference to advices from the financial advisor engaged and an external study conducted byforecasts included in industry specialist to project the market demand and supply situation, as well as forward trend of electricity prices.reports. On average, the growth and inflation rates of 3.0% and 3.5% (2013: 2.2% and 2.8%) werewas used in consideration of future expansion plans and new development projects as part of the long-term strategy. Cash flows beyond the terminal year was extrapolated using a growth rate of 2%.

Based on the assessments, no impairment was provided for the power generation license.
F-64

13Mining rights

The movements in the carrying amount of mining rights during the years are as follow:

  2016  2015 
       
Beginning of the year      
Cost  2,406,567   1,922,655 
Accumulated impairment losses  (760,296)  - 
Net book value  1,646,271   1,922,655 
         
Movement:        
Addition  -   483,912 
Impairment charge for the year  -   (760,296)
         
End of the year  1,646,271   1,646,271 
Cost  2,406,567   2,406,567 
Accumulated impairment losses  (760,296)  (760,296)
Net book value  1,646,271   1,646,271 

In 2015, due to the decrease of coal market price, impairment loss for mining rights of approximately RMB760 million have been recognized for two subsidiaries of the Company. The discount rate applied in determining the recoverable amounts of the mining rights in the value in use model were 10.46% and 10.62%.

F-65
14Derivative financial instruments

Details of derivative financial instruments are as follows:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Derivative financial assets            
－Hedging instruments for cash flow hedge (fuel swap contracts)
  265   47,210   264,535   1 
－Hedging instruments for cash flow hedge (exchange forward contracts)
  116,712   34,979   107,907   140,977 
－Hedging instruments for cash flow hedge (interest rate swap contracts)
  -   2,691 
－Financial instruments at fair value through profit or loss (fuel swap contracts)
  184,756   23,783   5,881   39,894 
－Financial instruments at fair value through profit or loss (exchange forward contracts)
  -   949 
Total  301,733   105,972   378,323   184,512 
                
Less: non-current portion                
－Hedging instruments for cash flow hedge (fuel swap contracts)
  133   8,826   71,341   - 
－Hedging instruments for cash flow hedge (exchange forward contracts)
  40,465   4,785   28,380   42,353 
－Financial instruments at fair value through profit or loss (fuel swap contracts)
  -   634 
        
－Hedging instruments for cash flow hedge (interest rate swap contracts)
  -   2,691 
Total non-current portion  40,598   14,245   99,721   45,044 
                
Current portion  261,135   91,727   278,602   139,468 
        

F-59F-66
1314Derivative financial instruments (continued)(Continued)

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Derivative financial liabilities            
－Hedging instruments for cash flow hedge (fuel swap contracts)
  1,009,369   15,259   164,464   1,157,677 
－Hedging instruments for cash flow hedge (exchange forward contracts)
  11   1,382   454   2,297 
－Hedging instruments for cash flow hedge (interest rate swap contract)
  322,871   380,541 
－Hedging instruments for cash flow hedge (interest rate swap contracts)
  169,201   121,576 
－Financial instruments at fair value through profit or loss (fuel swap contracts)
  149,989   29,814   619   23,047 
        
－Financial instruments at fair value through profit or loss (exchange forward contracts)
  -   344 
Total  1,482,240   426,996   334,738   1,304,941 
                
Less: non-current portion                
－Hedging instruments for cash flow hedge (fuel swap contracts)
  326,634   2,093   31,673   307,573 
－Hedging instruments for cash flow hedge (exchange forward contracts)
  8   210   295   940 
－Hedging instruments for cash flow hedge (interest rate swap contract)
  322,871   380,541 
－Financial instruments at fair value through profit or loss (fuel swap contracts)
  -   561 
        
－Hedging instruments for cash flow hedge (interest rate swap contracts)
  169,201   121,576 
Total non-current portion  649,513   383,405   201,169   430,089 
                
Current portion  832,727   43,591   133,569   874,852 
        

For the years ended 31 December 2014, 20132016, 2015 and 2012,2014, no material ineffective portion was recognized in the profit or loss arising from cash flow hedges.

The Company uses an interest rate swap contract to hedge its interest rate risk against one of its variable rate loans. The notional principal amount of the outstanding interest rate swap contract at 31 December 20142016 was US$278208 million (RMB equivalents of RMB1,701.08RMB1,443 million) (2013:(2015: US$304240 million (RMB equivalents of RMB1,853.46RMB1,558 million)). Through this arrangement, the Company pays an annual fixed interest of 4.4%4.40% while the original annual floating interest expense (6-month LIBOR+1%) attached in the loan is offset by the receivable leg of the interest rate swap. Such a swap is settled on a quarterly basis from September 2009 to September 2019.

TPG uses exchange forward contracts to hedge its foreign exchange risk arising from highly probable forecast purchase transactions. It also uses fuel oil swap contracts to hedge its fuel price risk arising from highly probable forecast purchases of fuel purchases.

TPG also uses various interest rate swap contracts to hedge floating semi-annual interest payments on borrowings with maturity dates up to 2020. The notional principal amount of these outstanding interest rate swap contracts at 31 December 20142016 was S$1,440.91,359 million (RMB equivalents of RMB6,685.2RMB6,522 million) (2013:(2015: S$1,4821,400 million (RMB equivalents of RMB7,090.63RMB6,422 million)). Through these arrangements, TPG swaps original floating interest (6-month SOR) to annual fixed interest determined by individual swap contracts. Such swap contracts are settled semi-annually from September 2011 to March 2020. As at 31 December 2014,2016, these interest rate swap contracts are carried on the balance sheetconsolidated statements of financial position as financial liability of RMB223.71RMB99 million (2013:(2015: financial asset of RMB2.69 million and financial liability of RMB263.97RMB41.12 million).

F-60F-67
1314Derivative financial instruments (continued)(Continued)

The analysis of contractual cash inflows/(outflows) of major derivative financial instruments are as follows:

    Cash flows     Cash flows 
 Carrying amounts  
Contractual
cash flows
  Within 1 year  Between 1 and 5 years  After 5 years  
Carrying
amounts
  
Contractual
cash flows
   
Within
1 year
  
Between 1
and 5 years
   
After 5
years
 
                              
As at 31 December 2014               
As at 31 December 2016               
Derivative financial assets                              
Fuel derivatives used for hedging (net settlement)  265   265   133   132   -   264,535   264,535   193,194   71,341   - 
                    
Forward exchange contracts used for hedging                                        
- inflows      2,827,425   1,969,596   857,829   -       2,118,946   1,488,071   630,875   - 
- outflows      (2,714,818)  (1,895,789)  (819,029)  -       (2,009,205)  (1,407,606)  (601,599)  - 
                      107,907   109,741   80,465   29,276   - 
  116,712   112,607   73,807   38,800   - 
                    
Fuel derivatives that do not qualify as hedges (net settlement)  184,756   184,756   184,756   -   -   5,881   5,881   5,881   -   - 
                    
Derivative financial liabilities                                        
Fuel derivatives used for hedging (net settlement)  1,009,369   (1,009,369)  (682,735)  (326,634)  -   164,464   (164,464)  (132,792)  (31,672)  - 
                    
Forward exchange contracts used for hedging                                        
- inflows      552,840   538,402   14,438   -       527,939   475,881   52,058   - 
- outflows      (553,505)  (539,020)  (14,485)  -       (528,454)  (476,104)  (52,350)  - 
                      454   (515)  (223)  (292)  - 
  11   (665)  (618)  (47)  - 
                    
Net-settled interest rate swaps used for hedging                                        
- net cash outflows  322,871   (508,178)  (175,843)  (320,678)  (11,657)
                    
- net cash inflows/(outflows)  169,201   (228,905)  (113,563)  (115,342)  - 
Fuel derivatives that do not qualify as hedges (net settlement)  149,989   (149,989)  (149,989)  -   -   619   (619)  (619)  -   - 
                    
As at 31 December 2013                    
As at 31 December 2015                    
Derivative financial assets                                        
Fuel derivatives used for hedging (net settlement)  47,210   47,210   38,384   8,826   -   1   1   1   -   - 
                    
Forward exchange contracts used for hedging                                        
- inflows      2,401,875   1,967,829   434,046   -       2,223,114   1,604,161   618,953   - 
- outflows      (2,366,753)  (1,937,889)  (428,864)  -       (2,093,389)  (1,510,919)  (582,470)  - 
                      140,977   129,725   93,242   36,483   - 
  34,979   35,122   29,940   5,182   - 
                    
Net-settled interest rate swaps used for hedging - net cash inflows/(outflows)  2,691   (16,121)  (7,241)  (8,880)  - 
Fuel derivatives that do not qualify as hedges (net settlement)  23,783   23,783   23,149   634   -   39,894   39,894   39,894   -   - 
                    
Foreign exchange contracts that do not qualify as hedges(net settlement)  949   691   691   -   - 
Derivative financial liabilities                                        
Fuel derivatives used for hedging (net settlement)  15,259   (15,259)  (13,166)  (2,093)  -   1,157,677   (1,157,677)  (850,104)  (307,573)  - 
                    
Forward exchange contracts used for hedging                                        
- inflows      1,155,192   1,107,633   47,559   -       539,730   429,306   110,424   - 
- outflows      (1,156,600)  (1,108,862)  (47,738)  -       (544,985)  (432,193)  (112,792)  - 
                      2,297   (5,255)  (2,887)  (2,368)  - 
  1,382   (1,408)  (1,229)  (179)  - 
                    
Net-settled interest rate swaps used for hedging                                        
- net cash outflows  380,541   (734,300)  (208,667)  (487,961)  (37,672)
                    
- net cash inflows/(outflows)  121,576   (190,867)  (84,753)  (106,114)  - 
Fuel derivatives that do not qualify as hedges (net settlement)  29,814   (29,814)  (29,253)  (561)  -   23,047   (23,047)  (23,047)  -   - 
                    
Foreign exchange contracts that do not qualify as hedges(net settlement)  344   (413)  (413)  -   - 
F-61F-68



1415Goodwill

The movements in the carrying amount of goodwill during the years are as follows:

  2016  2015 
Beginning of the year      
Cost  14,919,930   13,865,890 
Accumulated impairment losses  (3,242,748)  (2,140,335)
Net book value  11,677,182   11,725,555 
         
Movement:        
Business combination  -   1,169,966 
Impairment charge for the year  -   (1,105,649)
Currency translation differences  458,547   (112,690)
         
End of the year  12,135,729   11,677,182 
Cost  15,391,642   14,919,930 
Accumulated impairment losses  (3,255,913)  (3,242,748)
Net book value  12,135,729   11,677,182 


F-69

As at 1 January 2013
15
Cost14,952,512
Accumulated impairment loss(534,969)
Net book value14,417,543
Movement in 2013:
Opening net book value14,417,543
Impairment charge(980,513)
Currency translation differences(678,999)
Closing net book value12,758,031
As at 31 December 2013
Cost14,273,513
Accumulated impairment loss(1,515,482)
Net book value12,758,031
Movement in 2014:
Opening net book value12,758,031
Disposal(78,002)
Impairment charge(641,061)
Currency translation differences(313,413)
Closing net book value11,725,555
As at 31 December 2014
Cost13,865,890
Accumulated impairment loss(2,140,335)
Net book value11,725,555
Goodwill (Continued)

Impairment tests for goodwill

Goodwill is allocated to the CGUs of the Company and its subsidiaries.

The carrying amounts of major goodwill allocated to individual CGUs are as follows:

  As at 31 December 
  2014  2013 
       
PRC Power segment:
      
Yueyang Power Company  100,907   100,907 
Beijing Cogeneration  95,088   95,088 
Yangliuqing Cogeneration  151,459   151,459 
Diandong Energy  1,105,649   1,307,558 
Diandong Yuwang  -   438,883 
         
Singapore segment:        
Tuas Power  10,035,274   10,348,687 

F-62
14
Goodwill (continued)
  2016  2015 
       
PRC Power segment:      
Hainan Power  506,336   506,336 
Wuhan Power  518,484   518,484 
Yueyang Power Company  100,907   100,907 
Beijing Cogeneration  95,088   95,088 
Yangliuqing Cogeneration  151,459   151,459 
         
Singapore segment:        
Tuas Power  10,381,131   9,922,584 

The recoverable amount of a CGU is determined based on value-in-use calculations. For domestic CGUs, these calculations use cash flow projections based on management’s financial budgets covering periods of no more than five years. The Company expects cash flows beyond such periods will be similar to that of the respective final forecast years on existing production capacity.

For the goodwill allocated to Tuas Power, management has based their assessment of recoverable amount on value-in-use calculations. Management prepared the impairment model based on budget approved by the Board and various factors, such as inflation, power demand and other factors as well as the terminal value. On average, the growth and inflation rates of 3.0% and 3.5% werewas used in consideration of future expansion plans and new development projects as part of the long-term strategy. Cash flows beyond the terminal year was extrapolated using a growth rate of 2.0%.

Discount rates used for value-in-use calculations:

PRC Power segment 9.72%7.60%~10.68% 11.32%
Singapore segment  7.29%7.54%

Key assumptions used for value-in-use calculations:

Key assumptions applied in the impairment tests include the expected tariff rates, demands of electricity in specific regions where these power plants are located and fuel cost and the expected throughput and price of the related port.cost. Management determined these key assumptions based on past performance and its expectations on market development. The discount rates used reflect specific risks relating to individual CGUs. Management believes that any reasonably possible change in any of these key assumptions on which recoverable amounts of individual CGUs are based may cause carrying amounts of individual CGUs to exceed their recoverable amounts. Please refer to Note 4 and 12 for details of respective sensitivity analysis on domestic and oversea CGU impairment testing.

In 2016, the increase of goodwill in respect of Tuas Power was due to currency translation differences.
F-70

15Goodwill (Continued)

In 2015, due to continuous operating loss of the power plant assets as a result of oversupply of local power market and intense competition which led to lower utilization hours and tariff, and the effect of deteriorating coal market price on the coal assets under construction, the goodwill arising from the acquisition of Diandong Energy was fully impaired based on the impairment testing result. The above mentioned goodwill impairment provided in 2015 amounted to approximately RMB1,106 million in total. For Singapore segment, the decrease of goodwill in respect of Tuas Power was due to currency translation differences.

In 2014, due to the delay in coal mine construction schedule and continuous lower utilization of the power plants in Yunnan province, the goodwill arising from the acquisition of Diandong Energy and Diandong Yuwang were impaired based on the impairment testing result. The above mentioned goodwill impairment provided in 2014 approximately amounted to approximately RMB641 million in total. For Singapore segment, the decrease of goodwill in respect of Tuas Power was due to currency translation differences.
In 2013, due to the external environment deterioration in respect of shipping market, the utilization of port was below expectation and the price was at a lower level. Based on the impairment testing results, the goodwill arising from the acquisition of Luoyuanwan Harbour, Qingdao Port and Hualu Sea Transportation were fully impaired. Besides, the goodwill arising from the acquisition of Enshi Hydropower was assessed as fully impaired due to the fact that the capital expenditure of the power plant was higher than the original expectation. The above mentioned goodwill impairment provided in 2013 approximately amounted to RMB586 million. For Singapore segment, the goodwill in respect of Tuas Power was impaired RMB392 million in 2013 as a result of the power market change in Singapore.
In 2012, no goodwill was impaired except for the goodwill arising from acquisition of Pingliang Power Company. The factors leading to the goodwill impairment were the continuous deterioration in utilization and the competition from non-coal fired power generation plants. As a result, management expects ongoing loss of Pingliang Power Company will be incurred in the future. A full impairment loss of the CGU's goodwill was provided based on the result of impairment assessment.

F-63
1516Other non-current assets

Details of other non-current assets are as follows:

 
As at 31 December
  As at 31 December 
 2014  2013  2016  2015 
            
Intangible assets*  452,109   466,111 
Intangible assets *  411,308   451,176 
Deferred employee housing subsidies  4,847   5,787   3,041   3,907 
Prepayments for switchhouse and metering station  10,142   11,693   8,877   9,257 
Prepaid connection fees  118,941   101,913   108,365   111,513 
Prepaid territorial water use right**  775,493   793,410 
Prepaid territorial water use right **  777,994   763,905 
Finance lease receivables  525,353   551,509   563,099   552,401 
VAT recoverable  981,980   574,892   1,651,891   1,618,894 
Others  850,390   659,752   797,370   867,944 
        
Total  3,719,255   3,165,067   4,321,945   4,378,997 
        

*The intangible assets primarily consist of software, patented technologies and etc. In 2014,2016, there is no impairment provided for the intangible assets (2013:(2015 and 2014: RMB nil and RMB nil).

**The prepaid territorial water use right are amortized over the contractual period of 50 years. As at 31 December 2014,2016, there was no territorial water use right secured to a bank as collateral (31 December 2015: territorial water use right with net book value amounting to RMB80.36RMB78.38 million (2013: RMB82.42 million) was secured to a bank as collateral against a long-term loan of RMB37 million (2013: RMB69RMB18 million) (Note 23).

F-71

1617Inventories

Inventories comprised:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Fuel (coal and oil) for power generation  5,228,867   5,046,248   5,391,068   3,997,910 
Material and supplies  1,636,865   1,593,074   1,655,357   1,587,211 
  ��       7,046,425   5,585,121 
  6,865,732   6,639,322 
Less: provision for inventory obsolescence  163,458   170,296   167,282   162,389 
        
  6,702,274   6,469,026 
        
Total  6,879,143   5,422,732 

Movements of provision for inventory obsolescence during the years are analyzed as follows:

  2016  2015  2014 
          
Beginning of the year  (162,389)  (163,458)  (170,296)
Provision  (1,134)  (2,867)  (878)
Reversal  1,390   1,039   3,525 
Write-offs  -   -   632 
Currency translation differences  (5,149)  2,897   3,559 
End of the year  (167,282)  (162,389)  (163,458)
  2014  2013  2012 
          
Beginning of the year  (170,296)  (182,352)  (179,724)
Provision  (878)  (2,336)  (14,612)
Reversal  3,525   3,160   2,457 
Write-offs  632   3,551   14,625 
Currency translation differences  3,559   7,681   (5,098)
             
End of the year  (163,458)  (170,296)  (182,352)
             

F-64F-72


1718Other receivables and assets

Other receivables and assets comprised the following:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Prepayments for inventories  279,128   334,368   252,389   143,446 
Prepayments for pre-construction cost  577,644   421,944   885,051   735,975 
Prepaid income tax  20,499   88,854   141,423   2,393 
Prepayments for capacity quota  303,399   -   303,399   303,399 
Others  144,040   93,038   121,810   102,854 
        
Total prepayments  1,324,710   938,204   1,704,072   1,288,067 
        
Staff advances  17,648   15,566   11,939   15,692 
Dividends receivable  188,958   150,000   861,408   305,000 
Financial lease receivables  14,767   13,842   21,247   19,419 
Interest receivables  350   70   112   175 
Others  622,310   406,522   874,998   728,781 
        
Subtotal other receivables  844,033   586,000   1,769,704   1,069,067 
        
Less: provision for doubtful accounts  29,644   30,673   28,961   27,957 
        
Total other receivables, net  814,389   555,327   1,740,743   1,041,110 
        
VAT recoverable  1,272,621   579,450   2,008,955   1,678,812 
        
Designated loan to a joint venture  80,000   80,000 
Gross total  3,441,364   2,103,654   5,562,731   4,115,946 
        
Net total  3,411,720   2,072,981   5,533,770   4,087,989 
        

Please refer to Note 35 for details of other receivables and assets due from the related parties.

The gross amounts of other receivables of the Company and its subsidiaries are denominated in the following currencies:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
RMB  781,426   523,279   1,635,051   1,005,399 
S$ (RMB equivalent)  43,652   53,638   95,816   60,596 
US$ (RMB equivalent)  18,955   9,083   38,837   3,072 
        
Total  844,033   586,000   1,769,704   1,069,067 
        
F-65F-73

1718Other receivables and assets (continued)(Continued)

Movements of provision for doubtful accounts during the years are analyzed as follows:

 2014  2013  2012  2016  2015  2014 
                  
Beginning of the year  (30,673)  (28,641)  (26,505)  (27,957)  (29,644)  (30,673)
Reclassification to assets held for sale  -   51   - 
Provision  -   (2,096)  (2,774)  (1,011)  (9)  - 
Reversal  1,029   13   638 
            
Reversal/Write-off  7   1,696   1,029 
End of the year  (29,644)  (30,673)  (28,641)  (28,961)  (27,957)  (29,644)
            

As at 31 December 2014,2016, there was no indication of impairment relating to other receivables which were not past due and no material provision was made (2013:(2015: nil).

As at 31 December 2014,2016, other receivables of RMB101RMB113 million (2013: RMB104(2015: RMB168 million) were past due but not impaired. These amounts mainly represent funds deposited in a government agency and are fully recoverable. The ageing analysis of these other receivables was as follows:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Within 1 year  32,330   15,120   42,103   98,649 
Between 1 to 2 years  593   289   2,683   1,259 
Between 2 to 3 years  236   20,648   847   780 
Over 3 years  68,056   67,855   67,476   66,968 
        
  101,215   103,912 
        
Total  113,109   167,656 

As at 31 December 2014,2016, other receivables of RMB35RMB36 million which were past due (2013: RMB37(2015: RMB35 million) were impaired and a provision of RMB30RMB29 million (2013: RMB31(2015: RMB28 million) has been provided against the receivables. The individually impaired receivables have been long outstanding without any repayment agreements in place or possibility of renegotiation. It was assessed that a substantial portion of the receivables is not expected to be recovered. The ageing of these other receivables was as follows:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Within 1 year  542   965   752   1,566 
Between 1 to 2 years  -   120   912   93 
Between 2 to 3 years  -   -   285   3 
Over 3 years  34,540   35,546   34,263   33,792 
        
  35,082   36,631 
        
Total  36,212   35,454 

F-66F-74

1819Accounts receivable

Accounts receivable comprised the following:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
            
Accounts receivable  14,087,378   14,812,913   14,050,096   14,401,665 
Notes receivable  806,394   755,331   2,432,264   1,977,790 
          16,482,360   16,379,455 
  14,893,772   15,568,244 
Less: provision for doubtful accounts  11,809   6,123   88,889   2,054 
        
  14,881,963   15,562,121 
        
Total  16,393,471   16,377,401 

The gross amounts of account receivables of the Company and its subsidiaries are denominated in the following currencies:

  As at 31 December 
  2016  2015 
       
RMB  15,586,989   15,639,091 
S$ (RMB equivalent)  876,956   735,300 
US$ (RMB equivalent)  18,415   5,064 
Total  16,482,360   16,379,455 
  As at 31 December 
  2014  2013 
       
RMB  13,875,489   14,598,779 
S$ (RMB equivalent)  1,014,881   963,349 
US$ (RMB equivalent)  3,402   6,116 
         
Total  14,893,772   15,568,244 
         

The Company and its subsidiaries usually grant about one month’s credit period to local power grid customers from the end of the month in which the sales are made, except for SinoSing Power which provides credit period that rangedranges from 5 to 60 days from the dates of billings. Certain accounts receivables of Singapore subsidiaries are backed by bankers’ guarantees and/or depositdeposits from customers. It is not practicable to determine the fair value of the collaterals that correspond to these accounts receivable.

As at 31 December 2014,2016, no accounts receivable of the Company and its subsidiaries of approximately RMB3,592 million (2013: RMB6,501 million) was secured to a bankbanks as collateral against short-term loans of RMB3,150 million (2013: RMB 6,000 million) (Note 29)(2015: nil).

For the collateral of notes receivable, please refer to Note 26 for details.

Movements of provision for doubtful accounts during the years are analyzed as follows:

  2014  2013  2012 
          
Beginning of the year  (6,123)  (11,419)  (24,033)
Provision  (8,413)  (24)  (62)
Reversal  2,807   4,717   12,508 
Write-off  -   50   28 
Reclassification to assets held for sale  -   298   - 
Currency translation differences  (80)  255   140 
             
End of the year  (11,809)  (6,123)  (11,419)
             

F-67
  2016  2015  2014 
          
Beginning of the year  (2,054)  (11,809)  (6,123)
Provision  (88,818)  (60)  (8,413)
Reversal  397   1,833   2,807 
Write-off  1,682   -   - 
Transfer from a subsidiary to a joint venture  -   8,126   - 
Currency translation differences  (96)  (144)  (80)
End of the year  (88,889)  (2,054)  (11,809)
 
18
Accounts receivable (continued)

Ageing analysis of accounts receivable was as follows:
  As at 31 December 
  2014  2013 
       
Within 1 year  14,693,174   15,347,876 
Between 1 to 2 years  123,700   188,778 
Between 2 to 3 years  48,021   25,326 
Over 3 years  28,877   6,264 
         
   14,893,772   15,568,244 
         
As at 31 December 2014,2016, the Company and its subsidiaries recognised provisions for accounts receivable assessed on an individual basis, which mainly consists of receivables due from local customers for sales of electricity. The provisions were provided based on operating results of the local customers and collectability of the receivables.
F-75

19
Accounts receivable (Continued)

(a)Ageing analysis of accounts receivable was as follows:

  As at 31 December 
  2016  2015 
Within 1 year  16,152,038   16,129,748 
Between 1 to 2 years  279,694   225,253 
Between 2 to 3 years  29,123   1,915 
Over 3 years  21,505   22,539 
Total  16,482,360   16,379,455 

As at 31 December 2016, the maturity period of the notes receivable ranged from 1 to 612 months (2013:(2015: from 1 to 612 months).

As at 31 December 2014, and 2013, there was no indication of impairment relating to accounts receivable which were not past due and no provision was made.
(b)Ageing analysis of accounts receivable and notes receivable that are neither individually nor collectively considered to be impaired are as follows:

As at 31 December 2014, accounts receivable of RMB11.81 million (2013: RMB6.12 million) were impaired. The amount of the provision was RMB11.81 million as at 31 December 2014 (2013: RMB6.12 million). The ageing of these accounts receivable was as follows:

  As at 31 December 
  2014  2013 
       
Less than 1 year  274   - 
Between 2 to 3 years  8,126   - 
Over 3 years  3,409   6,123 
         
   11,809   6,123 
         
  As at 31 December 
  2016  2015 
Neither past due nor impaired  16,063,215   15,948,981 
Less than 1 year past due  248,597   338,545 
Between 1 to 2 years past due  63,094   88,565 
Between 2 to 3 years past due  17,944   1,151 
Over 3 years past due  621   159 
Total  16,393,471   16,377,401 

Receivables that were past due but not impaired relate to a number of independent customers that have a good track record with the Company and its subsidiaries. Based on past experience, management believes that no impairment allowance is necessary in respect of these balances as there has not been a significant change in credit quality and the balances are still considered fully recoverable.

19Disposal group held for sale

On 18 December 2013, the Company signed an equity transfer agreement with a third party to transfer its 49% equity interests in Luoyuanwan Harbour (with control retained by the Company), and all the controlling equity interests the Company held in Luoyuanwan Pier and Ludao Pier. These transactions were completed in early 2014 with no significant costs incurred in the disposals.  The revenue, cost, expense and net profit were insignificant from 1 January 2014 to the disposal date.

For the disposals of Luoyuanwan Pier and Ludao Pier with no interest being retained, the Company received cash consideration of RMB538 million. An investment income of RMB54 million was recognized and the related non-controlling interests of RMB100 million associated with the subsidiaries was eliminated upon disposal.

The cash consideration received from disposal of 49% equity interests in Luoyuanwan Harbour was RMB385 million. Non-controlling interests increased by RMB337 million to reflect the change in ownership percentage and the difference between the consideration received and the amount by which the non-controlling interest was adjusted totaling RMB48 million was recorded in capital surplus.

F-68F-76


20Share capital

 2016  2015 
            
 2014     2013     
Number
of shares
  Share capital  
Number
of shares
  Share capital 
 Number of Shares  Share capital  Number of Shares  Share capital     RMB ’000     RMB ’000 
    RMB ’000     RMB ’000             
As at 1 January                        
A shares 10,500,000,000  10,500,000  10,500,000,000  10,500,000   10,500,000,000   10,500,000   10,500,000,000   10,500,000 
Overseas listed foreign shares  3,555,383,440   3,555,383   3,555,383,440   3,555,383   4,700,383,440   4,700,383   3,920,383,440   3,920,383 
            
Subtotal  14,055,383,440   14,055,383   14,055,383,440   14,055,383   15,200,383,440   15,200,383   14,420,383,440   14,420,383 
            
Issuance of new H shares 365,000,000  365,000  -  -   -   -   780,000,000   780,000 
            
As at 31 December                            
A shares 10,500,000,000  10,500,000  10,500,000,000  10,500,000   10,500,000,000   10,500,000   10,500,000,000   10,500,000 
Overseas listed foreign shares  3,920,383,440   3,920,383   3,555,383,440   3,555,383   4,700,383,440   4,700,383   4,700,383,440   4,700,383 
            
Total  14,420,383,440   14,420,383   14,055,383,440   14,055,383   15,200,383,440   15,200,383   15,200,383,440   15,200,383 

In November 2014,2015, the Company issued 365,000,000780,000,000 H shares with a par value of RMB1.00, at a price of HK$8.607.32 per H share. Net proceeds from the issuance amounted to RMB2.45HK$5.69 billion after deducting issuance costs from gross proceeds of RMB2.49HK$5.71 billion. The difference between the net proceeds and the addition to share capital is recorded in capital surplus.

All shares issued by the Company were fully paid. The holders of domestic shares and overseas listed foreign shares, in all material aspects, are entitled to the same economic and voting rights.  None of the issued A shares are within the lock-up period as at 31 December 20132015 and 2014.2016.

21Surplus reserves

  As at 1 January 2014  Appropriation of surplus reserve  As at 31 December 2014 
Surplus reserves  7,085,454   110,895   7,196,349 
As at
1 January 2016 and
31 December 2016
Surplus reserves8,140,030

According to the Company Law of the PRC, the Company’s articles of association and board resolutions, the Company appropriates 10% of each year’s net profit under PRC GAAP to the statutory surplus reserve. The Company has the option to cease provision for such reserve when it reaches 50% of the registered share capital. Upon the approval from relevant authorities, this reserve can be used to make up any losses incurred or to increase share capital. Except for offsetting against losses, this reserve cannot fall below 25% of the registered share capital after being used to increase share capital.

According to the Company’s articles of association and board resolutions on 24 March 2015, the Company intends to appropriate 10% of this year’s net profit attributable to the Company’s shareholders under PRC GAAP toAs the statutory surplus reserve amounting to RMB1,035 million, in which RMB924 million being the excess of the consequent surplus reserve balance overreaches 50% of the registered share capital is subject toin 2016, the approval of the shareholders at the annual general meeting. Therefore, only RMB111 million of the aforementioned appropriation of statutory surplus reserve is reflected in these consolidated financial statements for the year ended 31 December 2014.Company made no provision this year.

Appropriation of discretionary surplus reserve is proposed by the Board of Directors, and approved by the general meeting of shareholders. This reserve can be used to make up any losses incurred in prior years or to increase the share capital after obtaining relevant approvals. For the years ended 31 December 20132016 and 2014,2015, no provision was made to the discretionary surplus reserve.

F-69F-77


21
Surplus reserves (continued)(Continued)

According to the articles of association, in distributing the Company’s profits after tax for the relevant accounting year, the lower of amounts determined in accordance with PRC GAAP and IFRS shall be adopted. As at 31 December 2014,2016, in accordance with PRC GAAP and IFRS, the balance of retained earnings for the Company and its subsidiaries amounted to approximately RMB29.753RMB39.212 billion and RMB30.085 billion;RMB38.690 billion, respectively; and the balance of retained earnings for the Company amounted RMB24.257RMB35.416 billion and RMB21.257RMB32.349 billion, respectively.

22Dividends

On 2421 March 2015,2017, the Board of Directors proposed a cash dividend of RMB0.38RMB0.29 per share, totaling approximately RMB5,480RMB4,408 million. This proposal is subject to the approval of the shareholders at the annual general meeting.

On 2623 June 2014,2016, upon the approval from the annual general meeting of the shareholders, the Company declared 20132015 final dividend of RMB0.38 (2012: RMB0.21)RMB0.47 (2014: RMB0.38) per ordinary share, which totaledtotaling approximately RMB5,341RMB7,144 million (2012:RMB2,952(2014: RMB5,480 million).


23Long-term loans

Long-term loans comprised the following:

 As at 31 December  As at 31 December 
 2014  2013  2016  2015 
Loans from Huaneng Group (a)  640,485   640,485       
Bank loans (b)  62,894,372   71,136,396 
Other loans (c)  1,496,034   1,533,746 
        
and its subsidiaries (a)  3,818,807   2,696,225 
Bank loans and other loans (b)  70,732,439   75,683,003 
  65,030,891   73,310,627   74,551,246   78,379,228 
Less: Current portion of long-term loans  7,392,433   12,796,956   9,560,885   12,351,205 
        
Total  57,638,458   60,513,671   64,990,361   66,028,023 

(a)Loans from Huaneng Group and its subsidiaries

Details of loans from Huaneng Group of the Company and its subsidiaries are as follows:

     As at 31 December 2014    
 Original currency  RMB equivalent  Less: Current portion  Non-current portion  Annual interest rate 
  ’000             
                
Loans from Huaneng Group                
Unsecured                
RMB                
- Variable rate  640,485   640,485   -   640,485   5.40%
                     As at 31 December 2016 
     As at 31 December 2013            Less:  Non-    
 Original currency  RMB equivalent  Less: Current portion  Non-current portion  Annual interest rate  Original  RMB  Current  current  Annual 
  ’000                  currency  equivalent  portion  portion  interest rate 
                      ’000             
Loans from Huaneng Group                                    
Unsecured                                    
RMB                      665,015   665,015   640,485   24,530   4.75%
- Variable rate  640,485   640,485   -   640,485   5.54%
     ��              
Loans from HIPDC                    
Unsecured                    
RMB  210   210   -   210   4.75%
                    
Loans from Huaneng Finance                    
Unsecured                    
RMB  286,000   286,000   60,000   226,000   4.41%-4.75%
                    
Loans from Huaneng Tiancheng Financial Leasing Co., Ltd.Loans from Huaneng Tiancheng Financial Leasing Co., Ltd.         
(“Tiancheng Financial Leasing”) (Note)
(“Tiancheng Financial Leasing”) (Note)
         
Secured                    
RMB  2,867,582   2,867,582   154,737   2,712,845   4.42%
                    
Total      3,818,807   855,222   2,963,585     
F-70F-78



23Long-term loans (continued)(Continued)

(a)Loans from Huaneng Group and its subsidiaries (Continued)
  As at 31 December 2015 
  
Original
currency
  
RMB
equivalent
  
Less: current
portion
  
Non-current
portion
  
Annual
interest rate
 
   ’000             
Loans from Huaneng Group                
Unsecured                
   RMB  665,015   665,015   665,015   -   4.28%-5.54%
                     
Loans from HIPDC                    
Unsecured                    
   RMB  1,700,210   1,700,210   1,700,210   -   4.28%-5.30%
                     
Loans from Huaneng Finance                    
Unsecured                    
   RMB  331,000   331,000   72,000   259,000   4.41%-5.84%
                     
Total      2,696,225   2,437,225   259,000     
Note: In 2016, certain subsidiaries of the Company enforced the sales and leaseback agreements with Tiancheng Financial Leasing. According to the agreements, these subsidiaries have an option to buy back the equipment at a nominal price (RMB1) when the lease term expires in 2021. The substance of the transaction was to obtain financing secured by relevant assets within the leasing period. As at 31 December 2016, the power generation equipment mentioned above has a total carrying amount of RMB2.999 billion while the long-term borrowings from Tiancheng Financial Leasing is RMB2.868 billion.

(b)Bank loans and other loans

Details of bank loans of the Company and its subsidiariesother loans are as follows:
  As at 31 December 2016 
        Less:  Non-    
  Original  RMB  Current  current  Annual 
  currency  equivalent  portion  portion  interest rate 
   ’000             
Secured                
RMB  9,065,810   9,065,810   1,259,230   7,806,580   4.41%-4.90%
Unsecured                    
RMB  45,991,511   45,991,511   6,786,253   39,205,258   2.65%-5.65%
US$  409,760   2,842,505   388,925   2,453,580   1.92%
S$  2,580,522   12,385,213   196,410   12,188,803   2.76%/4.25%
€  39,187   286,329   68,271   218,058   2.00%/2.15%
JPY  2,702,533   161,071   6,574   154,497   0.75%
Total      70,732,439   8,705,663   62,026,776     

         As at 31 December 2014       
   Original currency  RMB equivalent  Less: Current portion  Non-current portion  Annual interest rate 
    ’000             
Bank loans                 
Secured                 
RMB                 
- Fixed rate   10,436,300   10,436,300   1,026,670   9,409,630   5.54%-6.55%
- Variable rate   100,000   100,000   -   100,000   6.15%
Unsecured                     
RMB                     
- Fixed rate   26,194,209   26,194,209   4,985,946   21,208,263   4.20%-6.55%
- Variable rate   9,556,570   9,556,570   82,980   9,473,590   5.40%-6.55%
US$                     
- Fixed rate   2,666   16,316   16,316   -   6.36%
- Variable rate   539,004   3,298,164   408,284   2,889,880   0.81%-1.74%
$S                      
- Variable rate   2,772,077   12,861,331   352,252   12,509,079   1.98%
€                      
- Fixed rate   57,874   431,482   69,661   361,821   2.00%-2.15%
                       
Total       62,894,372   6,942,109   55,952,263     
                       
            As at 31 December 2013         
    Original currency  RMB equivalent  Less: Current portion  Non-current portion  Annual interest rate 
     ’000                 
                       
Bank loans                     
Secured                     
RMB                     
- Fixed rate   11,541,760   11,541,760   1,185,460   10,356,300   5.90%-6.55%
- Variable rate   80,000   80,000   -   80,000   6.55%
Unsecured                     
RMB                     
- Fixed rate   38,968,173   38,968,173   10,673,883   28,294,290   4.20%-6.55%
- Variable rate   2,595,000   2,595,000   10,000   2,585,000   5.54%-6.22%
US$                     
- Fixed rate   7,846   47,838   31,580   16,258   6.36%
- Variable rate   608,371   3,709,177   422,926   3,286,251   0.81%-1.74%
$S                      
- Variable rate   2,848,480   13,628,555   363,253   13,265,302   1.95%
€                      
- Fixed rate   67,217   565,893   78,450   487,443   2.00%-2.15%
                       
Total       71,136,396   12,765,552   58,370,844     

F-79
23Long-term loans (Continued)

(b)Bank loans and other loans (Continued)


  As at 31 December 2015 
        Less:  Non-    
  Original  RMB  Current  current  Annual 
  currency  equivalent  portion  portion  interest rate 
   ’000             
Secured                
RMB  9,642,630   9,642,630   1,128,620   8,514,010   4.41%-6.15%
Unsecured                    
RMB  50,102,146   50,102,146   7,975,901   42,126,245   2.90%-6.55%
US$  472,800   3,070,174   388,925   2,681,249   1.38%
S$  2,696,925   12,372,141   348,296   12,023,845   1.98%/4.25%
€  48,530   344,331   66,294   278,037   2.00%/2.15%
JPY  2,812,263   151,581   5,944   145,637   0.75%
Total      75,683,003   9,913,980   65,769,023     

As at 31 December 2014,2016, there was no long-term loan secured by territorial water use right (31 December 2015: a long-term loan of RMB37RMB18 million (31 December 2013: RMB69 million) iswas secured by territorial water use right with net book value amounting to RMB80.36 million (31 December 2013: RMB82.42RMB78.38 million).

As at 31 December 2014, a2016, long-term loanloans of RMB95RMB2,902 million (31 December 2013: RMB1232015: RMB67 million) iswere secured by certain property, plant and equipment with net book value amounting to RMB194approximately RMB3,105 million (31 December 2013: RMB2032015: RMB150 million).

As at 31 December 2014,2016, long-term loans of approximately RMB10,404RMB9,032 million were secured by future electricity revenue (31 December 2013: RMB11,4302015: RMB9,558 million).



F-71

23Long-term loans (continued)

(c)Other loans

Details of other loans of the Company and its subsidiaries are as follows:

      As at 31 December 2014    
   Original currency  RMB equivalent  Less: Current portion  Non-current portion  Annual interest rate 
    ’000             
Other loans                 
Secured                 
RMB                 
- Fixed rate   68,596   68,595   33,324   35,271   5.84%
                      
Unsecured                     
RMB                     
- Fixed rate   417,000   417,000   417,000   -   5.54%
- Variable rate   1,000,000   1,000,000   -   1,000,000   5.35%
$S                      
- Variable rate   2,250   10,439   -   10,439   4.25%
                       
Total       1,496,034   450,324   1,045,710     
                       
        As at 31 December 2013     
    Original currency  RMB equivalent  Less: Current portion  Non-current portion  Annual interest rate 
     ’000                 
                       
Other loans                     
Secured                     
RMB                     
- Fixed rate   100,000   100,000   31,404   68,596   5.84%
                       
Unsecured                     
RMB                     
- Fixed rate   417,000   417,000   -   417,000   5.54%
- Varible rate   1,000,000   1,000,000   -   1,000,000   5.35%
$S                      
- Variable rate   3,500   16,746   -   16,746   4.25%
                       
Total       1,533,746   31,404   1,502,342     

As at 31 December 2014, a long-term loan of RMB69 million (31 December 2013: RMB100 million) was secured by a subsidiary's port facility with net book value amounting to RMB522 million (31 December 2013: RMB540 million).

As at 31 December 2014, the balance of other long-term loans drawn from Huaneng Finance amounted to approximately RMB417 million (2013: RMB417 million) with annual interest rate of 5.54% (2013: 5.54%). These loans were reclassified as current in 2014.

F-72

23Long-term loans (continued)

The maturity of long-term loans is as follows:

 Loans from Huaneng Group and its subsidiaries  Bank loans and other loans 
 Loans from Huaneng Group  Bank loans  Other loans  As at 31 December  As at 31 December 
 As at 31 December  As at 31 December  As at 31 December  2016  2015  2016  2015 
 2014  2013  2014  2013  2014  2013             
1 year or less  -   -   6,942,109   12,765,552   450,324   31,404   855,222   2,437,225   8,705,663   9,913,980 
More than 1 year but not more than 2 years  640,485   -   7,321,430   7,226,839   1,035,271   450,299 
More than 1 year but no more than 2 years  715,400   62,000   11,420,746   12,028,176 
More than 2 years but no more than 3 years  -   640,485   9,292,458   6,935,843   -   1,035,297   953,082   68,000   11,081,242   9,134,791 
More than 3 years but no more than 4 years  -   -   5,667,453   5,263,576   -   -   928,082   2,000   7,769,955   9,219,121 
More than 4 years but not more than 5 years  -   -   6,870,199   5,541,103   -   - 
More than 4 years but no more than 5 years  232,021   2,000   7,618,953   6,404,924 
More than 5 years  -   -   26,800,723   33,403,483   10,439   16,746   135,000   125,000   24,135,880   28,982,011 
                          3,818,807   2,696,225   70,732,439   75,683,003 
  640,485   640,485   62,894,372   71,136,396   1,496,034   1,533,746 
Less: amount due within 1 year included under current liabilities  -   -   6,942,109   12,765,552   450,324   31,404   855,222   2,437,225   8,705,663   9,913,980 
                        
Total  640,485   640,485   55,952,263   58,370,844   1,045,710   1,502,342   2,963,585   259,000   62,026,776   65,769,023 
                        

The interest payment schedule of long-term loans in the future years are summarized as follows:

  As at 31 December 
  2016  2015 
       
1 year or less  2,987,045 �� 3,354,579 
More than 1 year but not more than 2 years  2,577,363   2,784,037 
More than 2 years but not more than 5 years  4,912,222   5,784,420 
More than 5 years  3,133,578   4,325,853 
         
Total  13,610,208   16,248,889 

F-80
  As at 31 December 
  2014  2013 
1 year or less  2,971,899   3,323,845 
More than 1 year but not more than 2 years  2,628,832   2,689,099 
More than 2 years but not more than 5 years  5,479,149   6,113,905 
More than 5 years  4,441,296   5,842,470 
         
Total  15,521,176   17,969,319 
         

24Long-term bonds

The Company issued bonds with maturity of 5 years, 7 years and 10 years in December 2007 with face values of RMB1 billion, RMB1.7 billion and RMB3.3 billion bearing annual interest rates of 5.67%, 5.75% and 5.90%, respectively. The total actual proceeds received by the Company were approximately RMB5.885 billion. These bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rates of those bonds are 6.13%, 6.10% and 6.17%, respectively. Interest paid per annum during the tenure of the bonds is RMB57 million, RMB98 million and RMB195 million, respectively. The bond with original maturity of 5 years had matured in December 2012 and the Company repaid the principal of RMB1 billion. The bond with original maturity of 7 years had matured in December 2014 and the Company repaid the principal of RMB1.7 billion. As at 31 December 2014,2016, interest payables for the unmatured bonds amounted to approximately RMB3.73 million (31 December 2013: RMB5.612015: RMB3.72 million).

The Company also issued bonds with maturity of 10 years in May 2008 with a face value of RMB4 billion bearing an annual interest rate of 5.20%. The actual proceeds received by the Company were approximately RMB3.933 billion. These bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rate of bond is 5.42%. Interest paid per annum during the tenure of the bonds is RMB208 million. As at 31 December 2014,2016, interest payable for these bonds amounted to approximately RMB135.06 million (31 December 2013: RMB135.062015: RMB134.69 million).

F-73


24
Long-term bonds (continued)

TheIn November 2011, the Company issued medium-term notesnon-public debt financing instrument with maturity of 5 years in May 2009 with a face value of RMB4RMB5 billion bearing an annual interest rate of 3.72%5.74%. The actual proceeds received by the Company were approximately RMB3.940RMB4.985 billion. These notes areThis bond is denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the notes fallbond falls due. The annual effective interest rate of these notesthis bond is 4.06%6.04%. Interest paid per annum during the tenure of the notesbond is RMB149RMB287 million. The bond had matured in May 2014November 2016 and the Company repaid the principal of RMB4RMB5 billion.

In November 2011 and January 2012, the Company issued non-public debt financing instrument with maturity of 5 years and 3 years with face values of RMB5 billion and RMB5 billion bearing annual interest rates of 5.74% and 5.24%, respectively. The actual proceeds received by the Company were approximately RMB4.985 billion and RMB4.985 billion. These bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rates of those bonds are 6.04% and 5.54%, respectively. Interest paid per annum during the tenure of the bonds is RMB287 million and RMB262 million. As at 31 December 2014, interest payable for these bonds amounted to approximately RMB45.61 million and RMB259.13 million, respectively (31 December 2013: RMB45.61 million and RMB259.14 million, respectively).

The Company issued overseas listed bonds with maturity of 3 years in February 2013 with a face value of RMB1.5 billion bearing an annual interest rate of 3.85%. The proceeds received by the Company were approximately RMB1.495 billion. These bonds are denominated in RMB and issued at par. Interest is payable semiannuallysemi-annually while principal will be paid when the bonds fall due. The annual effective interest rate of the bonds is 3.96%. Interest paid per annum during the tenure of the bonds is RMB58 million. As at 31 December 2014, interest payable forThe bond had matured in February 2016 and the bonds amounted to approximately RMB23.57 million (31 December 2013: RMB23.57 million).Company repaid the principal of RMB1.5 billion.

The Company issued non-public debt financing instrument with maturity of 3 years in June 2013 with a face value of RMB5 billion bearing an annual interest rate of 4.82%. The proceeds received by the Company were approximately RMB4.985 billion. The bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rate of the bonds is 5.12%. Interest paid per annum during the tenure of the bonds is RMB241 million. As at 31 December 2014, interest payable forThe bond had matured in June 2016 and the bonds amounted to approximately RMB139.32 million (31 December 2013: RMB139.32 million).Company repaid the principal of RMB5 billion.
F-81

24
Long-term bonds (Continued)

The Company issued medium-term notes with maturity of 5 years in July 2014 with a face value of RMB4 billion bearing an annual interest rate of 5.30%. The actual proceeds received by the Company were approximately RMB3.988 billion. These notes are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the notes fall due. The annual effective interest rate of these notes is 5.37%. Interest paid per annum during the tenure of the notes is RMB212 million. As at 31 December 2014,2016, interest payable for the bonds amounted to approximately RMB99.32 million (31 December 2013: nil)2015: RMB99.05 million).

The Company issued corporate bonds with maturity of 5 years and 10 years in June 2016 with face values of RMB3 billion and RMB1.2 billion bearing annual interest rates of 3.48% and 3.98%, respectively. The total actual proceeds received by the Company were approximately RMB4.2 billion. These bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rates of those bonds are 3.48% and 3.98%, respectively. Interest paid per annum during the tenure of the bonds is RMB104.40 million and RMB47.76 million, respectively. As at 31 December 2016, interest payable for the bonds amounted to approximately RMB57.78 million and RMB26.43 million, respectively.

Please refer to Note 35(c) for details of long-term bonds of the Company guaranteed by HIPDC and government-related banks.

F-74F-82
25Other non-current liabilities


  As at 31 December 
  2016  2015 
       
Finance lease payables(a)  1,088,846   1,422,572 
Government grants        
-Environmental subsidies(b)  1,122,406   1,093,483 
-Other government grants  174,216   164,394 
Others  1,250,212   981,312 
Subtotal  3,635,680   3,661,761 
Current portion of finance lease payables  (568,645)  (519,306)
Current portion of other non-current liabilities  (247,537)  (20,000)
Subtotal  (816,182)  (539,306)
Total  2,819,498   3,122,455 

25         Other non-current liabilities
(a)The Company and its subsidiaries had obligation under finance leases as follows:

   As at 31 December 
   2014  2013 
Finance lease payables(a)  1,584,020   115,986 
Less: current portion of finance lease payables   329,560   - 
          
Subtotal   1,254,460   115,986 
          
Government Grant         
-Environmental subsidies(b)  909,615   795,759 
-Other government grant   113,010   104,606 
          
Subtotal(c)  1,022,625   900,365 
          
Others   441,595   388,547 
          
Total   2,718,680   1,404,898 
  As at 31 December 
  2016  2015 
       
Within 1 year  605,806   574,415 
After 1 year but within 2 years  266,792   596,160 
After 2 years but within 3 years  82,470   240,793 
After 3 years  181,345   136,386 
   1,136,413   1,547,754 
Less: total future interest expense  47,567   125,182 
Total  1,088,846   1,422,572 

(a)        The Company and its subsidiaries had obligation under finance leases as follows:

  As at 31 December 
  2014  2013 
Within 1 year  414,143   10,283 
After 1 year but within 2 years  541,831   10,461 
After 2 years but within 3 years  535,492   10,461 
After 3 years  284,234   112,980 
         
   1,775,700   144,185 
         
Less: total future interest expense  191,680   28,199 
         
Present value of finance lease obligations  1,584,020   115,986 

(b)This primarily represented subsidies for the construction of desulphurization equipment and other environmental protection projects.

(c)In 2014,2016, the asset-related government grants which were credited to the statement of comprehensive income amounted to RMB66.15RMB102.21 million (2013: RMB72.34(2015: RMB98.88 million).

F-75F-83


26Accounts payable and other liabilities

Accounts payable and other liabilities comprised:

  As at 31 December 
  2014  2013 
Accounts and notes payable  11,685,285   12,277,872 
Amounts received in advance  649,431   705,938 
Payables to contractors for construction  10,172,216   7,724,843 
Retention payables to contractors  996,861   968,863 
Consideration payables for acquisitions  23,683   18,000 
Accrued interests  1,056,249   1,047,410 
Accrued pollutants discharge fees  75,648   133,287 
Accrued water-resources fees  35,329   23,550 
Accrued service fee of intermediaries  62,261   44,740 
Capacity quota payables  -   2,841 
Security deposits  100,356   140,953 
Provisions*  28,647   182,188 
Others  2,149,898   2,050,889 
         
Total  27,035,864   25,321,374 
         

*As at 31 December 2013, a provision of RMB182 million was made, due to an arbitration petitioned by a vendor of the Company’s subsidiary. In 2014, this provision had been reversed as a result of the arbitration award, which dismissed the claim of the vendor.
  As at 31 December 
  2016  2015 
Accounts and notes payable  12,059,004   9,403,088 
Amounts received in advance  365,887   472,886 
Payables to contractors for construction  10,832,444   11,425,575 
Retention payables to contractors  1,445,383   1,200,724 
Accrued interests  676,462   874,333 
Accrued pollutants discharge fees  82,917   94,691 
Accrued water-resources fees  28,227   18,847 
Accrued service fee of intermediaries  29,330   51,340 
Security deposits  138,876   104,949 
Provisions  21,758   15,001 
Others  2,644,939   2,524,330 
         
Total  28,325,227   26,185,764 

Please refer to Note 35(a)(iv) for details of accounts payable and other liabilities due to the related parties.

As at 31 December 2014,2016, there was no notes payable of RMB13 million (2013: RMB23 million) were secured by notes receivable (2015: notes payable of the Company and its subsidiariesRMB14 million was secured by notes receivable with net book value amounted to RMB15 million (2013: notes receivable amounted to RMB8 million and cash in bank amounted to RMB19RMB14 million).

The carrying amounts of financial liabilities (excluding amounts received in advance) included in accounts payable and other liabilities of the Company and its subsidiaries are denominated in the following currencies:

  As at 31 December 
  2014  2013 
RMB  25,106,220   22,963,862 
S$ (RMB equivalent)  635,640   941,307 
US$ (RMB equivalent)  626,242   641,265 
JPY (RMB equivalent)  15,599   12,889 
EUR (RMB equivalent)  2,677   56,113 
GBP (RMB equivalent)
  55   - 
         
Total  26,386,433   24,615,436 

F-76


26
Accounts payable and other liabilities (continued)
  As at 31 December 
  2016  2015 
       
RMB  26,801,242   24,773,457 
S$ (RMB equivalent)  669,797   517,192 
US$ (RMB equivalent)  479,179   392,953 
JPY (RMB equivalent)  6,917   29,264 
EUR (RMB equivalent)  2,205   12 
         
Total  27,959,340   25,712,878 

The ageing analysis of accounts and notes payable was as follows:

  As at 31 December 
  2016  2015 
       
Within 1 year  11,902,522   9,280,736 
Between 1 to 2 years  100,092   78,682 
Over 2 years  56,390   43,670 
         
Total  12,059,004   9,403,088 
  As at 31 December 
  2014  2013 
       
Accounts and notes payable      
Within 1 year  11,559,092   12,226,313 
Between 1 to 2 years  88,408   14,041 
Over 2 years  37,785   37,518 
         
Total  11,685,285   12,277,872 
         


F-84
27Taxes payable

Taxes payable comprises:

 As at 31 December 
 2014  2013  As at 31 December 
         2016  2015 
VAT payable  766,329   631,050   439,304   663,243 
Income tax payable  751,349   783,816   440,791   1,054,246 
Others  340,346   233,059   209,010   353,982 
                
Total  1,858,024   1,647,925   1,089,105   2,071,471 
        

28Short-term bonds

The Company issued unsecured super short-term bonds with face values of RMB5 billion, RMB5 billion, RMB5 billion and RMB5 billion bearing annual interest rates of 3.80%, 3.90% 3.80% and 5.70% in February 2013, April 2013, May 2013 and December 2013, respectively. Such bonds are denominated in RMB, issued at par and matured in 270 days. The annual effective interest rates of these bonds are 4.21%, 4.31%, 4.21% and 6.12%, respectively. These bonds were fully repaid in November 2013, December 2013, February 2014, and September 2014 respectively.

The Company issued unsecured short-term bond with a face values of RMB5 billion bearing an annual interest rates 5.25% in November 2013. The bond is denominated in RMB, issued at par and matured in 365 days. The annual effective interest rate of the bond is 5.67%. The bond was fully repaid in November 2014.
The Company issued unsecured short-term bonds with face values of RMB5 billion and RMB5RMB3 billion bearing annual interest rates of 4.90%4.44% and 3.98%3.17% in April 20142015 and November 2014, respectively.August 2015. Such bonds are denominated in RMB, issued at par and mature in 365366 days. The annual effective interest rates of these bonds are 5.30%,4.86% and 4.40%,3.58%. The bonds had matured and were fully repaid in April 2016 and August 2016 respectively.  As at 31 December 2014, interest payables for the outstanding bonds amounted to approximately RMB166.47 million and RMB23.99 million, respectively.

F-77


28Short-term bonds (continued)

The Company issued unsecured super short-term bonds with face values of RMB2 billion, RMB3RMB2 billion, RMB2 billion and RMB3RMB5 billion bearing annual interest rates of 4.63%3.11%, 4.63%3.10% , 3.38% and 4.00%3.05%, in August 2014, September 2014,June 2015, June 2015, June 2015 and November 2014,July 2015, respectively. Such bonds are denominated in RMB, issued at face value and mature in 270 days from the issuance dates. The annual effective interest rates of these bonds are 4.94%3.42%, 4.94%3.41%, 3.69% and 4.31%3.36%, respectively. These bonds were fully repaid in March 2016, March 2016, March 2016 and April 2016 respectively.

The Company issued unsecured short-term bonds with face values of RMB3 billion and RMB3 billion bearing annual interest rates of 2.50% and 2.60% in August 2016 and October 2016. Such bonds are denominated in RMB, issued at par and mature in 365 days. The annual effective interest rates of these bonds are 2.91% and 3.01%. As at 31 December 2016, interest payables for the bonds amounted to approximately RMB30.62 million and RMB16.03 million, respectively.
F-85

28Short-term bonds (Continued)

The Company issued unsecured super short-term bonds with face values of RMB2 billion, RMB2 billion, RMB2 billion, RMB4 billion, RMB3 billion, RMB3 billion, RMB4 billion, RMB2 billion, RMB3 billion and RMB2 billion bearing annual interest rates of 2.59%, 2.48%, 2.48%, 2.42%, 2.62%, 2.73%, 2.50%, 2.79%, 2.98% and 3.45% in March 2016, March 2016, March 2016, April 2016, April 2016, May 2016, July 2016, November 2016, November 2016 and December 2016, respectively. Such bonds are denominated in RMB, issued at face value and mature in 270 days, 270 days, 270 days, 270 days, 270 days, 270 days, 270 days, 270 days, 180 days and 270 days from the issuance dates respectively. The annual effective interest rates of these bonds are 2.90%, 2.79%, 2.79%, 2.73%, 2.93%, 3.04%, 2.81%, 3.10%, 3.19% and 3.78% respectively. The three bonds issued in March were fully repaid in November 2016, December 2016 and December 2016 respectively. As at 31 December 2014,2016, interest payables for the outstanding bonds amounted to approximately RMB32.73RMB70.28 million, RMB42.62RMB54.70 million, RMB49.14 million, RMB46.85 million, RMB7.95 million, RMB11.02 million and RMB18.74RMB5.10 million, respectively.

29Short-term loans

Short-term loans are as follows:

  As at 31 December 2016  As at 31 December 2015 
  Original  RMB  Annual  Original  RMB  Annual 
  currency  equivalent  interest rate  currency  equivalent  interest rate 
   ’000          ’000       
                     
Secured                    
RMB  125,534   125,534   2.77%-3.80%  307,149   307,149   3.19%-4.30%
                         
Unsecured                        
RMB  57,543,340   57,543,340   3.57%-4.35%  49,576,340   49,576,340   3.83%-5.60%
                         
                         
Total      57,668,874           49,883,489     
  As at 31 December 2014  As at 31 December 2013 
  Original currency  RMB equivalent  Annual interest rate  Original currency  RMB equivalent  Annual interest rate 
   ’000         ’000       
Secured                    
RMB                    
- Fixed rate  190,000   190,000   6.00%  1,050,000   1,050,000   6.00%-6.10%
- Fixed rate-discounted notes receivable  114,901   114,901   4.50%-4.80%  -   -   - 
- Variable rate  3,000,000   3,000,000   5.04%  5,000,000   5,000,000   5.04%-6.00%
US$                        
- Variable rate  -   -   -   2,468   15,046   2.67%
                         
Subtotal      3,304,901           6,065,046     
                         
Unsecured                        
RMB                        
- Fixed rate  9,532,000   9,532,000   4.00%-6.00%  8,040,000   8,040,000   5.28%-5.70%
- Variable rate  30,692,103   30,692,103   5.00%-6.00%  23,832,000   23,832,000   5.04%-5.70%
                         
Subtotal      40,224,103           31,872,000     
                         
Total      43,529,004           37,937,046     
                         


As at 31 December 2014,2016, short-term loans of RMB3,150RMB126 million (31 December 2013: RMB6,0002015: RMB307 million) were secured by accounts receivable of the Company and its subsidiaries with net book value amounting to RMB3,592 million (31 December 2013: RMB6,501 million).

As at 31 December 2014, a short-term loan of RMB40 million (31 December 2013: RMB50 million) was secured by a subsidiary's port facility with net book value amounting to RMB56.47 million (31 December 2013: RMB62.35 million).

As at 31 December 2014, short-term loans of RMB114.90 million (31 December 2013: nil) represented the notes receivable that were discounted with recourse. As these notes receivable havehad not yet matured, the proceeds received were recorded as short-term loans.

As at 31 December 2014, short-term loans from Huaneng Finance amounted to RMB1,890 million (31 December 2013: RMB1,290 million) with the annual interest rates ranged from 5.04% to 5.70% (31 December 2013: 5.40% to 5.70%) (Note 35).

As at 31 December 2014,2016, a short-term loan was borrowed from China Huaneng Group Clean Energy Technology Research Institute Co., Ltd. (“Huaneng Clean Energy”) amounting to RMB150 million (31 December 2013: RMB150 million) with the annual interest rate of 5.04% (31 December 2013: 5.40%) (Note 35).

As at 31 December 2014, a short-term loan was borrowed from Huaneng Group Hong Kong Limited Company (“Huaneng Hong Kong”) amounting to RMB100 million (31 December 2013: nil) with annual interest rate of 5.40% (31 December 2013: nil) (Note 35).

F-78


29
Short-term loans (continued)

As at 31 December 2014, short-term loans were borrowed from Xi’an Thermal Power Research Institute Co., Ltd.Ltd (“Xi’an Thermal”) amountingamounted to RMB200RMB100 million (31 December 2013: RMB100 million)2015: nil) with annual interest rate of 5.32% ( 31 December 2013: 5.52% ) (Note 35)3.92%.

As at 31 December 2013, a2016, short-term loanloans borrowed from Huaneng Finance amounted RMB15.05to RMB3,355 million was secured by certain property, plant and equipment of a subsidiary of the Company.  The loan was settled in 2014.(31 December 2015: RMB2,375.5 million) with annual interest rate ranged from 3.92% to 4.13%(31 December 2015: from 3.92% to 5.32%).
F-86

30Deferred income tax assets and liabilities

The offset amounts of deferred income tax assets and liabilities are as follows:

  As at 31 December 
  2014  2013 
       
Deferred income tax assets  884,274   652,358 
Deferred income tax liabilities  (1,810,755)  (2,032,417)
         
   (926,481)  (1,380,059)
         
  As at 31 December 
  2016  2015 
       
Deferred income tax assets before offsetting  2,432,552   2,389,857 
Offset amount  (1,168,595)  (1,325,466)
         
Deferred income tax assets after offsetting  1,263,957   1,064,391 
         
Deferred income tax liabilities before offsetting  (3,431,347)  (3,819,609)
Offset amount  1,168,595   1,325,466 
         
Deferred income tax liabilities after offsetting  (2,262,752)  (2,494,143)
         
   (998,795)  (1,429,752)

The gross movement on the deferred income tax accounts is as follows:

 2014  2013  2012  2016  2015  2014 
                  
Beginning of the year  (1,380,059)  (1,479,342)  (1,466,756)  (1,429,752)  (926,481)  (1,380,059)
Adjustment on acquisitions  -   -   (134,460)
Business combination (Note 39)
  (58,929)  (1,007,147)  - 
Credited to profit or loss (Note 32)  541,582   57,230   148,668   440,817   687,206   541,582 
(Charged)/ Credited to other comprehensive (loss)/ income  (119,984)  (59,197)  34,556 
Charged to other comprehensive income  87,775   (198,525)  (119,984)
Currency translation differences  31,980   79,187   (61,350)  (38,706)  15,195   31,980 
Reclassification to liabilities held for sale  -   22,063   - 
                        
End of the year  (926,481)  (1,380,059)  (1,479,342)  (998,795)  (1,429,752)  (926,481)
            



F-79F-87

30Deferred income tax assets and liabilities (continued)(Continued)

The movements in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdictions, are as follows:

Deferred income tax assets:

  Hedging reserve  Amortization of land use rights  Provision for impairment loss  Depreciation  Accrued expenses  VAT refunds on purchases of domestically manufactured equipment  Unused tax losses  Others  Total 
                            
As at 1 January 2013  162,454   15,079   187,627   135,706   46,048   306,869   132,990   320,129   1,306,902 
(Charged)/credited
to profit or loss
  -   (368)  74,300   (38,561)  (12,444)  (25,523)  27,790   86,706   111,900 
Charged to other comprehensive loss  (94,611)  -   -   -   -   -   -   -   (94,611)
Currency translation differences  (4,969)  -   (166)  (138)  -   -   (890)  (2,254)  (8,417)
Reclassification to assets held for sale  -   -   (88)  -   -   -   -   (625)  (713)
                                     
As at 31
December 2013
  62,874   14,711   261,673   97,007   33,604   281,346   159,890   403,956   1,315,061 
(Charged)/credited to profit or loss  -   (368)  (55,094)  541,903   42,107   (25,260)  (77,448)  51,200   477,040 
Credited to other comprehensive
loss
  160,112   -   -   -   -   -   -   -   160,112 
Currency
translation
differences
  (8,458)  -   (147)  (80)  -   -   (123)  (77)  (8,885)
                                     
As at 31
December 2014
  214,528   14,343   206,432   638,830   75,711   256,086   82,319   455,079   1,943,328 
                                     
  Hedging reserve  Amortization of land use rights  Provision for impairment loss  Depreciation  Accrued expenses  VAT refunds on purchases of domestically manufactured equipment  Unused tax losses  Others  Total 
                            
As at 1 January 2015  214,528   14,343   206,432   638,830   75,711   256,086   82,319   455,079   1,943,328 
                                     
Business combination  -   452   98,498   918   -   -   -   25,507   125,375 
(Charged)/credited to profit or loss  -   (378)  94,537   (67,315)  (34,773)  (25,644)  153,954   213,629   334,010 
Charged to other comprehensive income  (12,438)  -   -   -   -   -   -   -   (12,438)
Currency translation differences  (2,214)  -   (49)  (54)  -   -   (289)  2,188   (418)
                                     
As at 31 December 2015  199,876   14,417   399,418   572,379   40,938   230,442   235,984   696,403   2,389,857 
                                     
Business combination(Note 39)  -   -   66,560   6,840   -   -   -   -   73,400 
(Charged)/credited to profit or loss  -   (502)  140,969   (41,015)  1,185   (25,433)  (5,128)  71,610   141,686 
Charged to other comprehensive income  (182,400)  -   -   -   -   -   -   -   (182,400)
Currency translation differences  -   -   207   -   -   -   132   9,670   10,009 
                                     
As at 31 December 2016  17,476   13,915   607,154   538,204   42,123   205,009   230,988   777,683   2,432,552 


F-80F-88

30Deferred income tax assets and liabilities (continued)(Continued)

Deferred income tax liabilities:

  Fair value gains  Amortization of land use rights  Depreciation  Power generation license  Mining rights  Territorial water use right  Others  Total 
                         
As at 1 January 2013  (214,473)  (423,699)  (997,614)  (690,174)  (270,667)  (84,967)  (104,650)  (2,786,244)
                                 
 (Charged)/credited to profit or loss  -   (7,443)  (41,065)  -   -   3,374   (9,536)  (54,670)
Credited to other comprehensive loss  35,414   -   -   -   -   -   -   35,414 
Currency translation differences  -   3,765   45,984   37,855   -   -   -   87,604 
Reclassification to liabilities held for sale  -   16,114   3,903   -   -   2,759   -   22,776 
                                 
As at 31 December 2013  (179,059)  (411,263)  (988,792)  (652,319)  (270,667)  (78,834)  (114,186)  (2,695,120)
                                 
(Charged)/credited to profit or loss  -   (6,918)  76,723   -   -   2,864   (8,127)  64,542 
Credited to other comprehensive loss  (280,096)  -   -   -   -   -   -   (280,096)
Currency translation differences  -   17,658   2,960   19,756   -   -   491   40,865 
                                 
As at 31 December 2014  (459,155)  (400,523)  (909,109)  (632,563)  (270,667)  (75,970)  (121,822)  (2,869,809)
                                 

  Hedging reserve  Fair value gains  Amortization of land use rights  Depreciation  Power generation license  Mining rights  Territorial water use right  Others  Total 
                            
As at 1 January 2015  -   (459,155)  (400,523)  (909,109)  (632,563)  (270,667)  (75,970)  (121,822)  (2,869,809)
                                     
Business combination  -   -   (528,361)  (603,508)  -   -   -   (653)  (1,132,522)
Credited to profit or loss  -   -   24,257   212,855   -   113,452   1,769   863   353,196 
Charged to other comprehensive loss  -   (186,087)  -   -   -   -   -   -   (186,087)
Currency translation differences  -   -   454   8,056   7,103   -   -   -   15,613 
                                     
As at 31 December 2015  -   (645,242)  (904,173)  (1,291,706)  (625,460)  (157,215)  (74,201)  (121,612)  (3,819,609)
                                     
Business combination (Note 39)  -   -   (10,423)  -   -   -   -   (121,906)  (132,329)
Credited to profit or loss  -   -   24,948   169,088   -   27,832   1,769   75,494   299,131 
(Charged)/credited to other                                    
comprehensive loss  (26,530)  296,705   -   -   -   -   -   -   270,175 
Currency translation differences  8,131   -   (1,507)  (26,436)  (28,903)  -   -   -   (48,715)
                                     
As at 31 December 2016  (18,399)  (348,537)  (891,155)  (1,149,054)  (654,363)  (129,383)  (72,432)  (168,024)  (3,431,347)




F-81F-89

30Deferred income tax assets and liabilities (continued)(Continued)

As at 31 December 20142016 and 2013,2015, taxable temporary differences relating to interest in equity method investees amounted to RMB2.69RMB3.39 billion and RMB2.65 billion,RMB3.78billion, respectively. No deferred tax liabilities were recognized as at 31 December 20142016 and 20132015 as dividends from investments in associates and joint ventures are exempted from the PRC income tax and the Company has no plan to dispose any of these investees in the foreseeable future.

As at 31 December 20142016 and 2013,2015, taxable temporary differences relating to the undistributed profit of a wholly-owned foreign subsidiary amounted to RMB3.84RMB3.54 billion and RMB3.71RMB3.78 billion, respectively. No deferred tax liabilities were recognized in respect of the tax that would be payable on the distribution of these retained profit as at 31 December 20142016 and 20132015 as the Company controls the dividend policy of the subsidiary, and it has been determined that it is probable that the profits will not be distributed in the foreseeable future.

In accordance with the accounting policy set out in Note 2(t)2(s), the Company and its subsidiaries did not recognize deferred income tax assets in respect of certain deductible temporary differences and accumulated tax losses that can be carried forward against future taxable income as follow:

 As at 31 December 
 As at 31 December  2016  2015 
 2014  2013       
            
Deductible temporary differences  2,408,796   982,656   2,957,316   2,940,730 
Tax losses  7,056,577   6,217,548 
Unused tax losses  6,669,820   6,990,624 
                
  9,465,373   7,200,204 
        
Total  9,627,136   9,931,354 

The expiry dates of the tax losses of the Company and its subsidiaries for which no deferred income tax assets were recognized are summarized as follows:

 As at 31 December 
 As at 31 December  2016  2015 
 2014  2013       
Year of expiry            
2014  -   500,575 
2015  901,015   938,601 
2016  1,589,376   1,589,375   -   1,504,577 
2017  1,932,014   1,932,014   1,841,365   1,900,325 
2018  1,256,982   1,256,983   1,122,070   1,181,030 
2019  1,377,190   -   1,195,811   1,284,264 
2020  1,061,468   1,120,428 
2021  1,449,106   - 
                
  7,056,577   6,217,548 
        
Total  6,669,820   6,990,624 

31Additional financial information on balance sheetsto the consolidated statements of financial position

As at 31 December 2014,2016, the net current liabilities of the Company and its subsidiaries amounted to approximately RMB66,981RMB93,230 million (2013: RMB64,792(2015: RMB90,271 million). On the same date, total assets less current liabilities were approximately RMB170,326RMB184,643 million (2013: RMB163,254(2015: RMB185,030 million).

F-82F-90


32Income tax expense

 For the year ended 31 December  For the year ended 31 December 
 2014  2013  2012  2016  2015  2014 
                  
Current income tax expense  6,028,790   4,579,901   2,659,038   3,905,968   6,386,149   6,028,790 
Deferred income tax (Note 30)
  (541,582)  (57,230)  (148,668)  (440,817)  (687,206)  (541,582)
                        
  5,487,208   4,522,671   2,510,370 
            
Total  3,465,151   5,698,943   5,487,208 

No Hong Kong profits tax has been provided as there were no estimated assessable profits in Hong Kong for the year (2013(2015 and 2012:2014: nil).

The reconciliation of the effective income tax rate from the notional income tax rate is as follows:

  For the year ended 31 December 
  2016  2015  2014 
          
          
Notional tax on profit before income tax expense, calculated at the applicable income tax rates in the countries concerned  25.16%  25.11%  24.94%
Effect of tax losses not recognized  1.58%  (0.12%)  0.96%
Effect of deductible temporary differences not recognized
  (0.20%)  (0.16%)  1.67%
Effect of non-taxable income  (2.89%)  (1.77%)  (1.86%)
Effect of non-deductible expenses  1.09%  1.37%  1.59%
Others  0.35%  0.39%  1.50%
             
Effective tax rate  25.09%  24.82%  28.80%

  For the year ended 31 December 
  2014  2013  2012 
          
Notional tax on profit before income tax expense, calculated at the applicable income tax rates in the countries concerned  26.45%  24.33%  24.28%
Effect of tax losses not recognized  0.96%  0.48%  (0.99%)
Effect of deductible temporary differences not recognized
  1.67%  0.53%  4.27%
Effect of non-taxable income  (1.86%)  (1.15%)  (1.95%)
Effect of non-deductible expenses  1.59%  1.80%  2.67%
Others  (0.01%)  (0.03%)  - 
             
Effective tax rate  28.80%  25.96%  28.28%
             
The Company and its PRC branches and subsidiaries are subject to income tax at 25%, except for certain PRC branches and subsidiaries that are tax exempted or taxed at preferential tax rates, as determined in accordance with the relevant PRC income tax rules and regulations for the years ended 31 December 2014, 20132016, 2015 and 2012.2014.

Pursuant to Guo Shui Han [2009] No. 33, starting from 1 January 2008, the Company and its PRC branches calculate and pay income tax on a consolidated basis according to relevant tax laws and regulations. The original regulation specifying locations for power plants and branches of the Company to make enterprise income tax payments was abolished. The income tax of subsidiaries remains to be calculated individually based on their individual operating results.

The income tax rate applicable to Singapore subsidiaries is 17% (2013(2015 and 2012:2014: 17%).

33Earnings per share

The basic earnings per share is calculated by dividing the consolidated net profit attributable to the equity holders of the Company by the weighted average number of the Company’s outstanding ordinary shares during the year:

F-83F-91


33
Earnings per share (continued)(Continued)

 2014  2013  2012  2016  2015  2014 
                  
Consolidated net profit attributable to equity holders of the Company  10,757,317   10,426,024   5,512,454   8,520,427   13,651,933   10,757,317 
Weighted average number of the Company’s outstanding ordinary shares (’000)*
  14,085,800   14,055,383   14,055,383   15,200,383   14,485,383   14,085,800 
Basic and diluted earnings per share (RMB)  0.76   0.74   0.39   0.56   0.94   0.76 
            

*Weighted average number of ordinary shares:

 2014  2013  2012  2016  2015  2014 
  ’000   ’000   ’000   ’000   ’000   ’000 
                        
Issued ordinary shares at 1 January  14,055,383   14,055,383   14,055,383   15,200,383   14,420,383   14,055,383 
Effect of share issue (note 20)  30,417   -   - 
Effect of share issue (Note 20)  -   65,000   30,417 
                        
Weighted average number of ordinary shares at 31 December  14,085,800   14,055,383   14,055,383   15,200,383   14,485,383   14,085,800 
            

There was no dilutive effect on earnings per share since the Company had no dilutive potential ordinary shares for the years ended 31 December 2014, 20132016, 2015 and 2012.2014.

34Notes to consolidated statement of cash flows

Bank balances and cash comprised the following:

 As at 31 December  As at 31 December 
 2014  2013  2012  2016  2015  2014 
                  
Total bank balances and cash  12,608,192   9,433,385   10,624,497   7,881,630   7,537,813   12,608,192 
Add: Cash and cash equivalents reclassified to assets held for sale  -   34,488   - 
Less: Restricted cash
  369,825   126,201   119,110   71,129   59,563   369,825 
                        
Cash and cash equivalents as at year end  12,238,367   9,341,672   10,505,387   7,810,501   7,478,250   12,238,367 
            

The bank balances and cash of the Company and its subsidiaries are denominated in the following currencies:

 As at 31 December  As at 31 December 
 2014  2013  2012  2016  2015  2014 
                  
RMB  8,346,060   7,780,145   7,935,202   6,691,911   5,847,363   8,346,060 
S$ (RMB equivalent)  1,064,479   1,109,913   2,142,873   869,591   1,130,356   1,064,479 
US$ (RMB equivalent)  753,061   543,312   545,514   319,944   559,761   753,061 
JPY (RMB equivalent)  4   15   404   184   205   4 
HK$ (RMB equivalent)  2,444,588   -   504   -   128   2,444,588 
                        
Total  12,608,192   9,433,385   10,624,497   7,881,630   7,537,813   12,608,192 
            

There is no material non-cash investing and financing transactiontransactions for the yearyears ended 31 December 2014, 20132016, 2015 and 2012.

2014.
F-84F-92


35Related party balances and transactions

The related parties of the Company and its subsidiaries that had transactions with the Company and its subsidiaries are as follows:

Names of related parties Nature of relationship
   
Huaneng Group Ultimate parent company
HIPDC Parent company
Huaneng Energy & Communications Holdings Co., Ltd. and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Property Co., Ltd. and its subsidiaries Subsidiaries of Huaneng Group
Xi’an Thermal and its subsidiaries Subsidiaries of Huaneng Group
Huaneng Energy & Communications Holdings Co., Ltd. (“HEC”) and its subsidiariesSubsidiaries of Huaneng Group
Shandong Power Limited and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Renewables Corporation Limited(“Huaneng Renewables”)A subsidiary of Huaneng Group
Huaneng Hulunbeier Energy Development Company Ltd. (“Hulunbeier Energy”)A subsidiary of Huaneng Group
Huaneng Suzhou Thermoelectric Power Company Ltd.A subsidiary of Huaneng Group
Alltrust Insurance Co., Ltd.A subsidiary of Huaneng Group
Huaneng Wuhan Power Co., Ltd.A subsidiary of Huaneng Group
North United Power Co., Ltd. (“North United Power”) and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Group Technology Innovation Center A subsidiary of Huaneng Group
Huaneng Hulunbeier Energy Development  Company Ltd.A subsidiary of Huaneng Group
Gansu Huating Coal and Power Co., Ltd. (“Huating CoalA subsidiary of Huaneng Group
Alltrust Insurance Co., Ltd.A subsidiary of Huaneng Group
North United Power Co., Ltd. and Power”its subsidiariesSubsidiaries of Huaneng Group
Huaneng Group Clean Energy Technology Research Institute Co., Ltd.A subsidiary of Huaneng Group
Huaneng Renewables Corporation LimitedA subsidiary of Huaneng Group
Huaneng Shandong Power Limited and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Carbon Assets Management Company LimitedA subsidiary of Huaneng Group
Huaneng Huajialing Wind Power Co., Ltd.A subsidiary of Huaneng Group
Huaneng Group Hong Kong Limited CompanyA subsidiary of Huaneng Group
Great Wall Securities Co., Ltd.( “Great Wall Securities”) A subsidiary of Huaneng Group
Changping Huaneng Clean EnergyTraining Center A subsidiary of Huaneng Group
Huaneng Hong KongHuangeng Hainan Industry Co.,Ltd. A subsidiary of Huaneng Group
Huaneng Gansu Energy Development Company Ltd.A subsidiary of Huaneng Group
Huaneng Lancangjiang Hydropower Co., Ltd.A subsidiary of Huaneng Group
Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. A subsidiary of Huaneng Group
Huaneng Carbon Assets Management Company Limited (“Huaneng Carbon Assets”)A subsidiary of Huaneng Group
Huaneng HeilongjiangRizhao Power Generation Co., Ltd. (“Heilongjiang Power”)A subsidiary of Huaneng Group
Huaneng Shaanxi Qinling Power Generation Co., Ltd.
A subsidiary of Huaneng Group
Zhejiang Zheneng Power Co., Ltd. *An investee of Huaneng Group
Zhejiang Southeast Electric Power Co., Ltd.*An investee of Huaneng Group
Huaneng Ruijin Power Generation Co., Ltd. (“Ruijin Power Generation”)A subsidiary of HIPDC
Huaneng Anyuan Power Generation Co., Ltd(“Anyuan Power Generation”)A subsidiary of HIPDC
Huaneng Yingcheng Co-generation Limited Liability Company (“Yingcheng Cogeneration”)A subsidiary of HIPDC
Lime Company An associate of the Company and also a subsidiary of Huaneng Group
Huaneng Group Fuel Company An associate of the Company and also a subsidiary of Huaneng Group
Rizhao Power CompanyTiancheng Financial Leasing An associate of the Company and also a subsidiary of Huaneng Group

F-85

35
Related party balances and transactions (continued)

Names of related partiesShidaowan Nuclear Power Co., Ltd. NatureAn associate of relationshipthe Company and also a subsidiary of Huaneng Group
Xiapu Nuclear Power Co., Ltd. An associate of the Company and also a subsidiary of Huaneng Group
Huaneng Finance An associate of the Company and also a subsidiary of Huaneng Group
F-93

35Related party balances and transactions (Continued)

Names of related partiesNature of relationship
 
Hainan Nuclear Power Co., Ltd.An associate of the Company
Huaneng (Tianjin)(Tianjing) Coal Gasification Power Generation Co., Ltd. (“Coal Gasification Co.”) An associate of the Company and also a subsidiary of Huaneng Group
Chongqing Huaneng Lime Company LimitedAn associate of a subsidiary
Shanghai Time Shipping A joint venture of the Company
Jiangsu Nantong Power A joint venture of the Company
Huaneng Yingkou Port Limited Liability CompanyA joint venture of the Company
Subsidiaries of Jiangsu Province Guoxin Asset Management Group Limited Company(“Jiangsu Guoxin”)** A minority shareholder of the Company’s subsidiariesOther related party
Government-relatedOther government-related enterprises*** Related parties of the Company

*Transactions with subsidiaries of Huaneng Group which also are associates of the Company and its subsidiaries are presented as transactions with subsidiaries of Huaneng Group for note 35(a) and 35(b).

*Zhejiang Southeast Electric Power Co., Ltd. was merged with Zhejiang Zheneng Power Co., Ltd. in December 2013. Mr. Gu Biquan, the vice president of the Company, acted as the vice chairman of Zhejiang Southeast Electric Power Co., Ltd.. Meanwhile, Huaneng Group holds 25.57% equity interest of Zhejiang Southeast Electric Power Co., Ltd.. After the merger, Zhejiang Southeast Electric Power Co., Ltd. was revoked and Huaneng Group holds 5% equity interest of Zhejiang Zheneng Power Co., Ltd..
**TheBefore 10 March 2015, the former director of the Company, Mr. Xu Zujian also serves as the Vice President of Jiangsu Guoxin. On 10 March 2015, Mr. Xu Zujian resigned from the position of the non-executive director. Meanwhile, Jiangsu Guoxin holds 30%, 30%, 26.36%, 30% and 21% equity interest of Huaneng Nanjing Combined Cycle Co-generation Co., Ltd., Huaneng Nantong Power Generation Limited Liability Company, Huaneng Huaiyin II Power Limited Company, Jinling Power Company and Jinling CCGT respectively.

***Huaneng Group is a state-owned enterprise. In accordance with the revised IAS 24, “Related Party Disclosures”, government-related enterprises, other than entities under Huaneng Group, which the PRC government has control, joint control or significant influence over are also considered as related parties of the Company and its subsidiaries (“other government-related enterprises”).

The majority of the business activities of the Company and its subsidiaries are conducted with other government-related enterprises. For the purpose of the related party balances and transactions disclosure, the Company and its subsidiaries have established procedures to determine, to the extent possible, the identification of the ownership structure of its customers and suppliers as to whether they are government-related enterprises. However, many government-related enterprises have a multi-layered corporate structure and the ownership structures change over time as a result of transfers and privatization programs. Nevertheless, management believes that all material related party balances and transactions have been adequately disclosed.

In addition to the related party information shown elsewhere in these financial statements, the following is a summary of significant related party transactions entered into in the ordinary course of business between the Company and its subsidiaries and their related parties during the year and significant balances arising from related party transactions as at year end.

F-86F-94


35Related party balances and transactions (continued)(Continued)

(a)Related party balances

(i)Cash deposits in a related partyparties

 As at 31 December 
 2014  2013  As at 31 December 
       2016  2015 
Deposits in Huaneng Finance            
- Savings deposit  5,048,722   2,363,735   5,155,000   4,599,922 
Deposits in Great Wall Securities        
- Savings deposit  2   - 
                
Total  5,155,002   4,599,922 

For the year ended 31 December 2014,2016, the annual interest rates for these savings deposits placed with Huaneng Finance and Great Wall Securities  ranged from 0.35% to 1.35% (2013:(2015: from 0.35% to 1.35%).

(ii)
As described in Note 23 and 29, certain loans of the Company and its subsidiaries were borrowed from Huaneng Group, HIPDC, Huaneng Finance, Xi’an Thermal Huaneng Hong Kong and Huaneng Clean Energy.
Tiancheng Financial Leasing.

(iii)
Except for those disclosed in Note 35(a)(ii), the balances with Huaneng Group, HIPDC, subsidiaries, associates, joint ventures and other related parties are unsecured, non-interest bearing and the majority of receivable/repayable is within one year. As at and for the years ended 31 December 20142016 and 2013,2015, no provision is made on receivable balances from these parties.

OtherAccounts receivable, other receivables and assets comprised the following balances due from related parties:

  As at 31 December 
  2016  2015 
       
Due from Huaneng Group  708   1,700 
Due from joint ventures  806,112   421,884 
Due from subsidiaries of Huaneng Group  319,224   61,876 
Due from other related parties  -   26,745 
         
Total  1,126,044   512,205 
  As at 31 December 
  2014  2013 
Due from Huaneng Group  5   - 
Due from HIPDC
  596   - 
Due from associates  115,975   159,867 
Due from a joint venture  50,000   50,000 
Due from other related parties  61,891   61,354 
         
Total  228,467   271,221 
         

(iv)
Accounts payable and other liabilities comprised the following balances due to related parties:

 As at 31 December 
 As at 31 December  2016  2015 
 2014  2013       
Due to Huaneng Group  1,313   1,083   12,232   25,819 
Due to HIPDC  14,417   14,313   14,183   89,589 
Due to associates  1,921,486   2,637,506   263,154   9,652 
Due to a joint venture  288,983   776,720   325,590   308,308 
Due to other related parties  2,225,035   850,886 
Due to subsidiaries of Huaneng Group  4,145,595   2,451,528 
                
Total  4,451,234   4,280,508   4,760,754   2,884,896 
        
F-87F-95



35Related party balances and transactions (continued)(Continued)

(a)Related party balances (continued)(Continued)

(v)As at 31 December 2014,2016, included in long-term loans (including current portion) and short-term loans are loans payable to other government-related enterprises amounting to RMB106RMB130 billion (2013: RMB109(2015: RMB126 billion).

The balances with government-related enterprises also included substantially all the accounts receivable due from domestic power plants of government-related power grid companies, the bank deposits placed with government-related financial institutions as well as accounts payables and other payables arising from the purchases of coal and property, plant and equipment construction and related labor service provided by other government-related enterprises. Except for bank deposits, these balances are unsecured non-interest bearing and the majority of receivable/repayable is within one year.

(vi)As at 31 December 2016, prepayment for construction materials to subsidiaries of Huaneng Group amounted to RMB67 million (2015: RMB23 million).

(b)Related party transactions

  For the year ended 31 December 
  2014  2013  2012 
HIPDC         
Service fees expenses on transmission and transformer facilities  (140,771)  (140,771)  (140,771)
Rental charge on land use rights of Huaneng Nanjing Power Plant  (1,657)  (1,657)  (1,657)
Rental charge on office buildings  (6,175)  -   - 
             
Huaneng Group            
Drawdown of long-term loans
  -   640,485   - 
Interest expense on long-term loans  (35,847)  (51,923)  (23,955)
Training fees  -   (10)  (22)
Purchase of capacity quota
  -   (478,620)  - 
             
Huaneng Finance            
Interest expense on long-term loans  (23,384)  (23,169)  (12,338)
Interest expense on short-term loans  (86,795)  (66,756)  (174,930)
Drawdown of long-term loans  -   -   417,000 
Drawdown of short-term loans  1,890,000   1,290,000   3,555,000 
             
HEC and its subsidiaries            
Purchase of coal and service fee occurred for transportation  (373,882)  (771,807)  (611,474)
Purchase of equipment  (65,397)  (55,424)  (82,685)
Purchase of materials  -   (479)  (3,994)
             
Shanghai Time Shipping            
Purchase of coal and service fee paid for transportation
  (2,705,865)  (2,654,082)  (1,432,619)
Purchase of tug boats  -   -   (88,889)



F-88

35Related party balances(i)Procurement of goods and transactions (continued)receiving services

(b)Related party transactions (continued)
  For the year ended 31 December 
  2016  2015  2014 
          
Huaneng Group
         
Technical services and engineering contracting services  -   50   - 
Other purchases  451   -   - 
             
Subsidiaries of Huaneng Group
            
Purchase of coal and transportation services  17,212,984   16,575,700   20,019,180 
Technical services and engineering contracting services  1,055,251   769,176   690,984 
Purchase of equipment  483,058   302,387   418,959 
Purchase of power generation quota  195,528   287,779   309,791 
Entrusting other parties for power generation  -   -   38,855 
Other purchases  6,472   7,073   8,087 
             
Joint ventures of the Company
            
Purchase of coal and transportation services  2,150,844   1,816,954   1,816,954 
Entrusting other parties for power generation  -   -   27,985 
             
An associate of the Company
            
Other purchases  43,808   44,591   69,911 

  For the year ended 31 December 
  2014  2013  2012 
Xi’an Thermal and its subsidiaries         
Technical services and industry-specific technological project contracting services obtained  (343,379)  (258,188)  (166,520)
Purchase of equipment  (279,254)  (311,565)  (170,741)
Service fees expenses on transmission and transformer facilities  -   (1,290)  - 
Drawdown of short-term loans  200,000   100,000   100,000 
Interest expense on short-term loans  (6,500)  (1,978)  (4,347)
             
Rizhao Power Company            
Sales of coal  -   20,559   202,819 
Purchase of coal  (1,569,653)  (1,623,360)  (1,795,217)
Purchase of materials  (52,252)  (58,962)  (47,235)
Purchase of electricity  (5,399)  (8,369)  (6,160)
Sales of electricity  1,042   2,779   2,372 
Rental charge on lease of certain property, plant and equipment  (13,698)  (14,763)  (16,228)
Purchase of power generation quota  (58,164)  (15,356)  (30,396)
Sales of power generation quota
  -   7,704   - 
             
Huaneng Renewables            
Agency fee on CDM projects  -   (900)  (1,200)
             
Hulunbeier Energy            
Purchase of coal  (418,718)  (425,978)  (970,328)
             
Lime Company            
Purchase of lime  (69,911)  (113,697)  (116,741)
             
Huaneng Group Technology Innovation Center            
Technical services and industry-specific technological project contracting services obtained  (85,696)  (70,400)  (21,480)
             
Huaneng Property Co., Ltd.            
Rental charge on office building  (112,029)  (96,868)  (95,595)
Property management fee  (1,578)  -   - 


F-89F-96


35Related party balances and transactions (continued)(Continued)

(b)Related party transactions (continued)(Continued)

(i)Procurement of goods and receiving services (Continued)

 For the year ended 31 December 
 2016 2015 2014 
       
Other Related Party
      
Entrusting other parties for power generation  -   -   967 

  For the year ended 31 December 
  2014  2013  2012 
North United Power and its subsidiaries         
Purchase of coal  (84,009)  (134,975)  (100,364)
Entrusting other parties for power generation  (38,855)  -   - 
Rental charge on office buildings  (80)  -   - 
             
Huating Coal and Power            
Purchase of coal  (1,105,100)  (1,190,240)  (1,658,401)
             
Huaneng Suzhou Thermoelectric Power Company Ltd.            
Handling service provided  1,276   -   - 
Sales of coal  -   -   31,682 
             
Ruijin Power Generation            
Sales of coal  -   34,885   206,731 
             
Huaneng Wuhan Power Co., Ltd.            
Sales of coal  -   8,851   88,694 
Handling service provided  1,003   -   - 
             
Alltrust Insurance Co., Ltd.            
Premiums for property insurance  (171,555)  (159,727)  (148,525)
Rental revenue  842   982   - 
             
Huaneng Group Fuel Company and its subsidiaries            
Purchase of coal and service fee paid for transportation
  (12,277,448)  (9,751,792)  (658,317)
Sales of coal  -   65,586   27,593 
Handling service provided  25,043   30,066   8,971 
Transportation service provided  -   4,057   - 
Port usage fee  -   13,571   4,539 
             
Huaneng Shanxi Qinling Power Generation Co., Ltd.            
Purchase of power generation quota
  (6,862)  -   - 
             
Huaneng Clean Energy            
Drawdown of short-term loans  150,000   150,000   120,000 
Interest expense on short-term loans  (7,920)  (6,422)  (5,784)
Technical services and industry-specific technological project contracting services obtained  (10,688)  -   (540)
             
Coal Gasification Co.            
Purchase of water and electricity  (2,688)  -   - 
(ii)Sales of goods and providing services

  For the year ended 31 December 
  2016  2015  2014 
Subsidiaries of Huaneng Group
         
Sales of power generation quota  1,165   135,085   - 
Other sales  189,914   40,780   22,892 
Service provided  31,135   50,627   56,517 
             
Joint ventures of the Company
            
Service provided  59,049   133,332   - 
Sales of goods  9,490   23,003   24,551 
             
Other related party
            
Provision of entrusted power generation  -   33,129   29,232 

(iii)Other related party transactions

  For the year ended 31 December 
  2016  2015  2014 
          
(1)          Rental charge on leasehold
         
HIPDC  157,264   161,941   148,603 
Subsidiaries of Huaneng Group  128,932   130,591   125,807 
             
(2)          Rental income from leasehold
            
A joint venture of the Company  7,750   10,759   3,440 
Subsidiaries of Huaneng Group  5,724   9,115   9,342 

F-90F-97


35Related party balances and transactions (continued)(Continued)

(b)Related party transactions (continued)(Continued)

  For the year ended 31 December 
  2014  2013  2012 
Anyuan Power Generation         
Purchase of coal  (7,997)  -   - 
Training Fee  -   -   (319)
Provision of entrusted power generation  241,868   295,020   235,195 
             
Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd.            
Purchase of power generation quota  (169,598)  (119,196)  (49,500)
             
Zhejiang Southeast Electric Power Co., Ltd.            
Purchase of power generation quota  -   (39,591)  (37,744)
             
Nantong Power            
Entrusting other parties for power generation  (27,985)  -   - 
Rental revenue  3,440   -   - 
Sale of steam  24,551   -   - 
Transfer of assets  -   -   1,034,777 
             
Shandong Power Limited and its subsidiaries            
Purchase of power generation quota  (75,168)  (183,866)  (138,484)
Purchase of equipment  (3,295)  (1)  (159)
Purchase of coal  (2,102,114)  (1,558,130)  (957,275)
Drawdown of short-term loans  -   -   50,000 
Interest expense on short-term loans  -   (2,200)  (867)
Technical services and industry-specific technological project contracting services obtained
  (22,090)  (1,590)  - 
Training service provided  -   61   - 
Transportation service provided  19,743   33,037   - 
Handling service provided  1,266   3,250   - 
Labor service provided  10,464   -   - 
Rental revenue  8,500   -   - 
Sale of capacity quota  21,850   -   - 
             
Huaneng Carbon Assets            
Technical services and industry-specific technological project contracting services obtained  (762)  (1,702)  - 
             
Heilongjiang Power            
Service fee  -   (300)  - 
             
Huaneng Group Hong Kong            
Drawdown of short-term loans  100,000   -   - 
Interest expense on short-term loans  (2,850)  -   - 
(iii)Other related party transactions (Continued)

  For the year ended 31 December 
  2016  2015  2014 
          
(3)      Drawdown of loans
         
Subsidiaries of Huaneng Group  4,035,000   2,660,500   2,340,000 
HIPDC  210   -   - 
             
(4)      Interest expense on loans
            
Huaneng group  30,514   32,573   35,847 
HIPDC  13,136   114,687   - 
Subsidiaries of Huaneng Group  217,098   158,695   127,449 
             
(5)       Interest income on loans
            
A joint venture of the Company  3,488   4,572   - 
             
(6)       Capital injection from a subsidiary of Huaneng Group
            
A subsidiary of Huaneng Group  -   286,312   - 
             
(7)       Capital injection
            
A subsidiary of Huaneng Group  157,500   683,550   - 
An associate of the Company  100,418   206,230   266,877 
A joint venture of the Company  18,200   -   - 
             
(8)       Pre-construction cost paid by
            
A subsidiary of Huaneng Group  765   12,254   - 
             
(9)       Finance lease payments received from
            
A subsidiary of Huaneng Group  2,960,000   100,000   - 
             
(10)    Entrusted management fee
            
Huaneng Group  24,950   24,950   - 
             
(11)    Trusteeship management income
            
Huaneng Group  1,700   1,700   - 


(c)Guarantees

  As at 31 December 
  2016  2015 
       
(i)          Long-term loans guaranteed by      
- Huaneng Group  565,992   713,994 
- HIPDC  2,142,000   2,228,000 
(ii)          Long-term bonds guaranteed by        
- HIPDC  4,000,000   4,000,000 
- Government-related banks  3,300,000   3,300,000 
F-91F-98



35Related party balances and transactions (continued)(Continued)

(b)(c)Related party transactions (continued)Guarantees (Continued)

  For the year ended 31 December 
  2014  2013  2012 
          
Yingcheng Cogeneration         
Sale of cable  435   -   - 
             
Subsidiaries of Jiangsu Guoxin            
Provision of entrusted power generation  29,232   75,736   163,512 
Entrusting other parties for power generation  (967)  (7,977)  - 

For the years ended 31 December 2014, 2013 and 2012, the Company provided management service to certain power plants owned by Huaneng Group and HIPDC. The Company did not receive any management fee. At the same time, Huaneng Group provided management services to certain branches and subsidiaries of the Company in specified provinces. The Company did not pay any management fee for such arrangements.

For the additional capital injection in associates and joint ventures, please refer to Note 8.

Transactions with government-related enterprises

For the years ended 31 December 2014, 20132016, 2015 and 2012,2014, the Company and its domestic subsidiaries sold substantially all their products to local government-related power grid companies. Please refer to Note 5 for details of sales information to major power grid companies. The Company and its domestic subsidiaries maintained most of its bank deposits in government-related financial institutions while lenders of most of the Company and its subsidiaries’ loans are also government-related financial institutions.

For the years ended 31 December 2014, 20132016, 2015 and 2012,2014, other collectively-significant transactions with government-related enterprises also include a large portion of fuel purchases, property, plant and equipment construction and related labor employed.

(c)Guarantees

    As at 31 December 
    2014  2013 
         
 (i)Long-term loans guaranteed by      
  - Huaneng Group  290,520   427,332 
  - HIPDC  2,000,000   2,000,000 
 (ii)Long-term bonds guaranteed by        
  - HIPDC  4,000,000   4,000,000 
  - Government-related banks  3,300,000   5,000,000 

F-92


35Related party balances and transactions (continued)

(d)Pre-tax benefits and social insurance of key management personnel

 For the year ended 31 December  For the year ended 31 December 
 2014  2013  2012  2016  2015  2014 
                  
Salaries  8,546   9,126   7,572   8,225   9,064   8,546 
Pension  1,350   1,324   1,043   1,521   1,470   1,350 
                        
Total  9,896   10,450   8,615   9,746   10,534   9,896 
            

(e)Related party commitments

Related party commitments which were contracted but not recognized in balance sheetthe consolidated statement of financial position as at balance sheet datesthe end of reporting period are as follows:

(i)Capital commitments

  As at 31 December 
  2014  2013 
       
Xi’an Thermal and its subsidiaries  256,217   249,095 
HEC and its subsidiaries  38,992   44,702 
Shanghai Time Shipping  7,220   33,500 
A subsidiary of Shandong Power Limited  2,280   5,722 
         
   304,709   333,019 
         
  As at 31 December 
  2016  2015 
       
Subsidiaries of Huaneng Group  439,571   405,208 

(ii)Fuel purchase and transportation commitments

  As at 31 December 
  2016  2015 
       
Subsidiaries of Huaneng Group  963,306   1,343,875 
A joint venture of the Company   291,032   200,440 
         
Total  1,254,338   1,544,315 
  As at 31 December 
  2014  2013 
       
Huaneng Group Fuel Company and its subsidiaries  2,619,442   1,633,705 
Shanghai Time Shipping  223,534   207,287 
HEC and its subsidiaries  3,334   19,380 
Huating Coal and Power  40,141   88,200 
North United Power and its subsidiaries  -   10,044 
Shandong Power Limited and its subsidiaries  69,632   83,571 
         
   2,956,083   2,042,187 
         

F-99

35Related party balances and transactions (Continued)

(e)Related party commitments (Continued)

(iii)Operating lease commitments

  As at 31 December 
  2014  2013 
       
HIPDC  81,035   57,990 
Huaneng Property Co., Ltd.  262,390   32,528 
         
   343,425   90,518 
         

F-93

  As at 31 December 
  2016  2015 
       
Subsidiaries of Huaneng Group  286,340   145,950 
HIPDC  65,554   73,202 
         
Total  351,894   219,152 

36Labor cost

Other than the salaries and staff welfare, the labor cost of the Company and its subsidiaries mainly comprises the following:

All PRC employees of the Company and its subsidiaries are entitled to a monthly pension upon their retirements. The PRC government is responsible for the pension liability to these employees on retirement. The Company and its subsidiaries are required to make contributions to the publicly administered retirement plan for their PRC employees at a specified rate, currently set at 14% to 22% (both 20132015 and 2012:2014: 14% to 22%) of the basic salary of the PRC employees. The retirement plan contributions paid by the Company and its subsidiaries for the year ended 31 December 20142016 were approximately RMB621RMB873 million (2013(2015 and 2012: RMB5652014: RMB789 million and RMB487RMB621 million), including approximately RMB593RMB832 million (2013(2015 and 2012: RMB5392014: RMB748 million and RMB474RMB593 million) charged to profit or loss.

In addition, the Company and its subsidiaries have also implemented a supplementary defined contribution retirement scheme for PRC employees. Under this scheme, the employees are required to make a specified contribution based on the number of years of service with the Company and its subsidiaries, and the Company and its subsidiaries are required to make a contribution equal to two to four times the employees’ contributions. The employees will receive the total contributions upon their retirement. For the year ended 31 December 2014,2016, the contributions to supplementary defined contribution retirement scheme paid by the Company and its subsidiaries amounted to approximately RMB171RMB244 million (2013(2015 and 2012: RMB1542014: RMB223 million and RMB138RMB171 million), including approximately RMB164RMB233 million (2013(2015 and 2012: RMB1502014: RMB212 million and RMB134RMB164 million) charged to profit or loss.

SinoSing Power and its subsidiaries in Singapore appropriate a specified rate, currently set at 6.5% to 16% (both 20132015 and 2012:2014: 6.5% to 16%) of the basic salary to central provident funds in accordance with the local government regulations. The contributions made by SinoSing Power and its subsidiaries for the year ended 31 December 20142016 amounted to approximately RMB14.70RMB18.47 million (2013(2015 and 2012: RMB14.702014: RMB15.76 million and RMB17.10RMB14.70 million), all of which were charged to profit or loss.

The Company and its subsidiaries have no further obligation for post-retirement benefits beyond the annual contributions made above.
F-100

36Labor cost (Continued)

In addition, the Company and its subsidiaries also make contributions of housing funds and social insurance to the social security institutions at specified rates of the basic salary and no more than the upper limit. The housing funds and social insurance contributions paid by the Company and its subsidiaries amounted to approximately RMB462 billion (2013RMB604 million (2015 and 2012: RMB4332014: RMB579 million and 446462 million) and RMB519RMB699 million (2013(2015 and 2012: RMB4582014: RMB658 million and RMB 410RMB519 million) for the year ended 31 December 2014,2016, including approximately RMB439RMB572 million (2013(2015 and 2012: RMB4142014: RMB546 million and RMB377RMB439 million) and RMB483RMB664 million (2013(2015 and 2012: RMB4282014: RMB619 million and RMB397RMB483 million) were charged to profit or loss, respectively.


F-94


37Directors’, supervisors’ and senior management’s emoluments

(a)Pre-tax benefits and social insurance of directors and supervisors

The remuneration of every director and supervisor of the Company for the year ended 31 December 20142016 is set out below:

  Fees  Basic salaries  Performance salaries  Pension  Total 
                
Name of director               
Mr. Cao Peixi  -   -   -   -   - 
Mr. Guo Junming4
  -   -   -   -   - 
Mr. Liu Guoyue  -   278   258   117   653 
Mr. Li Shiqi  -   -   -   -   - 
Mr. Huang Jian  -   -   -   -   - 
Mr. Fan Xiaxia  -   358   494   122   974 
Mr. Mi Dabin2
  -   -   -   -   - 
Mr. Guo Hongbo  48   -   -   -   48 
Mr. Xu Zujian  48   -   -   -   48 
Ms. Li Song2
  -   -   -   -   - 
Mr. Li Zhensheng  74   -   -   -   74 
Mr. Qi Yudong  74   -   -   -   74 
Mr. Zhang Shouwen  74   -   -   -   74 
Mr. Yue Heng2
  -   -   -   -   - 
Ms. Zhang Lizi2
  -   -   -   -   - 
Mr. Huang Long 1
  -   -   -   -   - 
Mr. Shan Qunying1
  48   -   -   -   48 
Mr. Xie Rongxing1
  48   -   -   -   48 
Mr. Shao Shiwei1
  74   -   -   -   74 
Mr. Wu Liansheng1
  74   -   -   -   74 
                     
Sub-total  562   636   752   239   2,189 
                     
                     
Name of supervisor                    
Mr. Ye Xiangdong2
  -   -   -   -   - 
Mr. Mu  Xuan2
  -   -   -   -   - 
Mr. Hao Tingwei3
  -   -   -   -   - 
Ms. Zhang Mengjiao  -   -   -   -   - 
Mr. Gu Jianguo  48   -   -   -   48 
Mr. Wang Zhaobin  -   305   420   111   836 
Ms. Zhang Ling  -   129   505   102   736 
                     
Sub-total  48   434   925   213   1,620 
                     
Total  610   1,070   1,677   452   3,809 
                     

     Basic  Performance       
  Fees  salaries  salaries  Pension  Total 
                
Name of director               
Mr. Cao Peixi  -   -   -   -   - 
Mr. Guo Junming  -   -   -   -   - 
Mr. Liu Guoyue  -   -   -   -   - 
Mr. Li Shiqi  -   -   -   -   - 
Mr. Huang Jian  -   -   -   -   - 
Mr. Fan Xiaxia  -   327   396   122   845 
Mr. Mi Dabin  48   -   -   -   48 
Mr. Guo Hongbo  -   -   -   -   - 
Mr. Zhu Yousheng  48   -   -   -   48 
Ms. Li Song  48   -   -   -   48 
Mr. Li Zhensheng  74   -   -   -   74 
Mr. Zhang Shouwen1
  37   -   -   -   37 
Mr. Yue Heng  74   -   -   -   74 
Mr. Geng Jianxin  74   -   -   -   74 
Mr. Xia Qing  74   -   -   -   74 
Mr. Xu Mengzhou2
  37   -   -   -   37 
                     
Sub-total  514   327   396   122   1,359 
                     
Name of supervisor                    
Mr. Ye Xiangdong  -   -   -   -   - 
Mr. Mu Xuan  48   -   -   -   48 
Ms. Zhang Mengjiao  -   -   -   -   - 
Mr. Gu Jianguo  48   -   -   -   48 
Mr. Wang Zhaobin3
  -   51   -   -   51 
Ms. Zhang Ling3
  -   69   -   -   69 
Ms. Zhang Xiaojun4
  -   92   314   89   495 
Mr. Zhu Daqing4
  -   90   313   88   491 
                     
Sub-total  96   302   627   177   1,202 
                     
Total  610   629   1,023   299   2,561 
F-95F-101


37Directors’, supervisors’ and senior management’s emoluments (continued)(Continued)

(a)Pre-tax benefits and social insurance of directors and supervisors (continued)(Continued)

The remuneration of every director and supervisor of the Company for the year ended 31 December 20132015 is set out below:

    Basic  Performance       
 Fees  salaries  salaries  Pension  Total 
 Fees  Basic salaries  Performance salaries  Pension  Total                
Name of director                              
Mr. Cao Peixi  -   -   -   -   -   -   -   -   -   - 
Mr. Huang Long  -   -   -   -   - 
Mr. Guo Junming  -   -   -   -   - 
Mr. Liu Guoyue  -   143   663   123   929 
Mr. Li Shiqi  -   -   -   -   -   -   -   -   -   - 
Mr. Huang Jian  -   -   -   -   -   -   -   -   -   - 
Mr. Liu Guoyue  -   318   353   113   784 
Mr. Fan Xiaxia  -   351   484   113   948   -   356   494   131   981 
Mr. Shan Qunying  48   -   -   -   48 
Mr. Mi Dabin  65   -   -   -   65 
Mr. Guo Hongbo  48   -   -   -   48   12   -   -   -   12 
Mr. Zhu Yousheng  24   -   -   -   24 
Mr. Xu Zujian  48   -   -   -   48   24   -   -   -   24 
Mr. Xie Rongxing  48   -   -   -   48 
Mr. Shao Shiwei  74   -   -   -   74 
Mr. Wu Liansheng  74   -   -   -   74 
Ms. Li Song  65   -   -   -   65 
Mr. Li Zhensheng  74   -   -   -   74   74   -   -   -   74 
Mr. Qi Yudong  74   -   -   -   74   6   -   -   -   6 
Mr. Zhang Shouwen  74   -   -   -   74   74   -   -   -   74 
Mr. Yue Heng  100   -   -   -   100 
Ms. Zhang Lizi  30   -   -   -   30 
Mr. Geng Jianxin  37   -   -   -   37 
Mr. Xia Qing  37   -   -   -   37 
                                        
Sub-total  562   669   837   226   2,294   548   499   1,157   254   2,458 
                                        
Name of supervisor                                        
Mr. Guo Junming  -   -   -   -   - 
Mr. Hao Tingwei  48   -   -   -   48 
Mr. Ye Xiangdong  -   -   -   -   - 
Mr. Mu Xuan  65   -   -   -   65 
Ms. Zhang Mengjiao  -   -   -   -   -   -   -   -   -   - 
Mr. Gu Jianguo  48   -   -   -   48   49   -   -   -   49 
Mr. Wang Zhaobin  -   299   412   99   810   -   298   385   103   786 
Ms. Zhang Ling  -   113   438   95   646   -   133   263   53   449 
                                        
Sub-total  96   412   850   194   1,552   114   431   648   156   1,349 
                                        
Total  658   1,081   1,687   420   3,846   662   930   1,805   410   3,807 
                    
F-96F-102


37Directors’, supervisors’ and senior management’s emoluments (continued)(Continued)

(a)Pre-tax benefits and social insurance of directors and supervisors (continued)(Continued)

The remuneration of every director and supervisor of the Company for the year ended 31 December 20122014 is set out below:

     Basic  Performance       
  Fees  salaries  salaries  Pension  Total 
                
Name of director               
Mr. Cao Peixi  -   -   -   -   - 
Mr. Guo Junming  -   -   -   -   - 
Mr. Liu Guoyue  -   278   258   117   653 
Mr. Li Shiqi  -   -   -   -   - 
Mr. Huang Jian  -   -   -   -   - 
Mr. Fan Xiaxia  -   358   494   122   974 
Mr. Mi Dabin  -   -   -   -   - 
Mr. Guo Hongbo  48   -   -   -   48 
Mr. Xu Zujian  48   -   -   -   48 
Ms. Li Song  -   -   -   -   - 
Mr. Li Zhensheng  74   -   -   -   74 
Mr. Qi Yudong  74   -   -   -   74 
Mr. Zhang Shouwen  74   -   -   -   74 
Mr. Yue Heng  -   -   -   -   - 
Ms. Zhang Lizi  -   -   -   -   - 
Mr. Huang Long  -   -   -   -   - 
Mr. Shan Qunying  48   -   -   -   48 
Mr. Xie Rongxing  48   -   -   -   48 
Mr. Shao Shiwei  74   -   -   -   74 
Mr. Wu Liansheng  74   -   -   -   74 
                     
Sub-total  562   636   752   239   2,189 
                     
Name of supervisor                    
Mr. Ye Xiangdong  -   -   -   -   - 
Mr. Mu  Xuan  -   -   -   -   - 
Mr. Hao Tingwei  -   -   -   -   - 
Ms. Zhang Mengjiao  -   -   -   -   - 
Mr. Gu Jianguo  48   -   -   -   48 
Mr. Wang Zhaobin  -   305   420   111   836 
Ms. Zhang Ling  -   129   505   102   736 
                     
Sub-total  48   434   925   213   1,620 
                     
Total  610   1,070   1,677   452   3,809 
  Fees  Basic salaries  Performance salaries  Pension  Total 
Name of director               
Mr. Cao Peixi  -   -   -   -   - 
Mr. Huang Long  -   -   -   -   - 
Mr. Li Shiqi  -   -   -   -   - 
Mr. Huang Jian  -   -   -   -   - 
Mr. Liu Guoyue  -   347   485   108   940 
Mr. Fan Xiaxia  -   347   485   108   940 
Mr. Shan Qunying  48   -   -   -   48 
Mr. Guo Hongbo (appointed in 2012)  48   -   -   -   48 
Mr. Xu Zujian  48   -   -   -   48 
Mr. Xie Rongxing (appointed in 2012)  24   -   -   -   24 
Ms. Huang Mingyuan (resigned in 2012)  24   -   -   -   24 
Mr. Liu Shuyuan (resigned in 2012)  -   -   -   -   - 
Mr. Shao Shiwei  74   -   -   -   74 
Mr. Wu Liansheng  74   -   -   -   74 
Mr. Li Zhensheng  74   -   -   -   74 
Mr. Qi Yudong  74   -   -   -   74 
Mr. Zhang Shouwen  74   -   -   -   74 
                     
Sub-total  562   694   970   216   2,442 
                     
Name of supervisor                    
Mr. Guo Junming  -   -   -   -   - 
Mr. Hao Tingwei  48   -   -   -   48 
Ms. Zhang Mengjiao  -   -   -   -   - 
Mr. Gu Jianguo  48   -   -   -   48 
Mr. Wang Zhaobin  -   250   376   89   715 
Ms. Zhang Ling  -   113   447   88   648 
                     
Sub-total  96   363   823   177   1,459 
                     
Total  658   1,057   1,793   393   3,901 
                     
F-103

37Directors’, supervisors’ and senior management’s emoluments (Continued)

(a)Pre-tax benefits and social insurance of directors and supervisors (Continued)
1RetiredResigned on 18 September 2014.23 June 2016.
2Appointed on 18 September 2014.23 June 2016.
3Mr. Hao Tingwei passed awayResigned on 22 January 2014.14 April 2016.
4Mr. Guo Junming retired from supervisor and appointed as directorAppointed on 18 September 2014.14 April 2016.

During the year, no option was granted to the directors or the supervisors (2013(2015 and 2012:2014: nil).

During the year, no emolument was paid to the directors or the supervisors (including the five highest paid employees) as an inducement to join or upon joining the Company or as compensation for loss of office (2013(2015 and 2012:2014: nil).

No director or supervisor had waived or agreed to waive any emoluments during the years 2014, 20132016, 2015 and 2012.

2014.
F-97F-104


37Directors’, supervisors’ and senior management’s emoluments (continued)(Continued)

(b)Five highest paid individuals

The five individuals whose emoluments were the highest in the Company and its subsidiaries for the year include one director (2013(2015 and 2012: one2014: two and two directors)one) whose emoluments are reflected in the analysis presented above. The emoluments payable to the remaining four (2013(2015 and 2012: four2014: three and three)four) individuals during the year (within the range of nil to RMB0.85RMB0.79 million) are as follows:

 For the year ended 31 December  As at 31 December 
 2014  2013  2012  2016  2015  2014 
                  
Basic salaries  1,220   1,197   888   1,213   910   1,220 
Performance salaries  1,680   1,647   1,236   1,440   1,260   1,680 
Pension  454   418   298   502   365   454 
                        
  3,354   3,262   2,422   3,155   2,535   3,354 
            

38Commitments

(a)Capital commitments

Capital commitments mainly relate to the construction of new power projects, certain ancillary facilities and renovation projects for existing power.power plants. Details of such commitments are as follows:

  As at 31 December 
  2014  2013 
       
Contracted but not provided  20,333,112   16,915,952 
         
Authorized but not contracted  1,619,696   1,069,370 
         
Total  21,952,808   17,985,322 
         

F-98

38Commitments (continued)
  As at 31 December 
  2016  2015 
       
Contracted but not provided  18,603,559   20,388,412 

(b)Operating lease commitments

The Company and its subsidiaries have various operating lease arrangements for land and buildings. Some of the leases contain renewal options and most of the leases contain escalation clauses. Lease terms do not contain restrictions on the Company and its subsidiaries’ activities concerning dividends, additional debts or further leasing.

Total future minimum lease payments under non-cancelable operating leases are as follows:

  As at 31 December 
  2016  2015 
       
Land and buildings      
- not later than 1 year  181,441   193,772 
- later than 1 year and not later than 2 years  144,088   65,652 
- later than 2 years and not later than 5 years  133,984   85,793 
- later than 5 years  970,896   949,978 
         
Total  1,430,409   1,295,195 
  As at 31 December 
  2014  2013 
       
Land and buildings      
- not later than 1 year  149,344   61,775 
- later than 1 year and not later than 2 years  147,495   27,441 
- later than 2 years and not later than 5 years  116,968   27,147 
- later than 5 years  1,040,418   1,150,419 
         
   1,454,225   1,266,782 
         


F-105
38Commitments (Continued)

(b)Operating lease commitments (Continued)

In addition, in accordance with a 30-year operating lease agreement signed by Huaneng Dezhou Power Plant (“Dezhou Power Plant”) and Shandong Land Bureau for the land occupied by Dezhou Power Plant Phases I and II in June 1994, annual rental amounted to approximately RMB30 million effective from June 1994 and is subject to revision at the end of the fifth year from the contract date. Thereafter, the annual rental is subject to revision once every three years. The increment for each rental revision is restricted to no more than 30% of the previous annual rental amount. For the years ended 31 December 2014, 20132016, 2015 and 2012,2014, the annual rentals werewas approximately RMB34 million, respectively.


F-99

38Commitments (continued)
million.

(c)Fuel purchase commitments

The Company and its subsidiaries have entered into various long-term fuel supply agreements with various suppliers in securing fuel supply for various periods. All the agreements require minimum, maximum or forecasted volume purchases and are subject to certain termination provisions. Related purchase commitments are as follows:


   2014
As at 31 December 2016 PeriodsPurchase quantitiesEstimated unit costs (RMB)
    
A government-related enterprise20152.8 million ton/yearnot defined
Purchase 
A government-related enterprise2015-2039
2.8 million m3/day*
2.92/ m3
A government-related enterprise2015-2023
541 million m3/year*
2.33/ m3
Estimated 
  2015-2023
450 million m3/year*
2.92/ m3
Periods quantities 
Other suppliers2015-2016244.5BBtu**/dayapproximately 70,000/BBtu
2017-2022248BBtu/dayapproximately 70,000/BBtu
2023247.5BBtu/dayapproximately 70,000/BBtu
2024-202849.9BBtu/dayapproximately 90,000/BBtu
unit costs (RMB) 
     
A government-related enterprise2017-2039
2.8 million m3/day*
2.31/ m
3
A government-related enterprise2017-2023
541 million m3/year*
2.16/ m
3
   20132017-2023
450 million m3/year*
2.16/ m
3
Other suppliers2017-2022248BBtu**/dayapproximately 63,000/BBtu
2023247.5-256.6BBtu**/dayapproximately 63,000/BBtu
2024-202849.9-59.0BBtu**/dayapproximately 70,000/BBtu

As at 31 December 2015
PurchaseEstimated
  PeriodsPurchase quantitiesEstimated unit costs (RMB)
     
 
A government-related enterprise2014-20152016-2039
2.8 million  ton/yearm3/day*
not defined2.13/ m
3
A government-related enterprise2016-2023
541 million m3/year*
1.91/ m
3
2016-2023
450 million m3/year*
1.91/ m
3
Other suppliers2016244.5BBtu**/dayapproximately 40,000/BBtu
2017-2022248BBtu**/dayapproximately 40,000/BBtu
2023247.5BBtu**/day
approximately
40,000/BBtu
2024-202849.9BBtu**/dayapproximately 55,000/BBtu
     
A government-related enterprise2014–2023
 541 million m3/year*
1.97/ m3
    

F-106
382014–2023
450 million m3/year*
2.92/ m3
Other suppliers201490.1BBtu/day(i)
2015-202272.5BBtu/day(i)
202372.4BBtu/day(i)
2024-202849.9BBtu/day (i)Commitments (Continued)

(c)Fuel purchase commitments  (Continued)

*The quantities represent maximum volume, others represent minimum or forecasted volume if not specified.

**BBtu: Billion British Thermal UnitUnit.

(i)No estimated unit cost information available for daily purchase quantities of 4,240million BBtu from 2015 to 2028 as at and before 31 December 2013.

F-100


39Business combinations

2016 Business combinations

2014 (a)Acquisition not under common control during the year ended 31 December 2016

  
From acquisition date to
31 December 2016 acquirees’
 
  Revenue  Net loss  Net cash in / (out) 
          
Tongshan Xiehe Wind Power Generation (i)  -   -   17,177 
Yangguang Cogeneration (ii)  33,275   (55,809)  (109,014)


(i)In July 2016, the Company acquired 100% equity interests of Tongshan Xiehe Wind Power Generation from Xiehe Wind Power Investment Co., Ltd. for cash consideration of RMB3 million. The acquisition date was the date when the Company obtained control over Tongshan Xiehe Wind Power Generation. The acquisition cost equaled to the fair value of the identifiable net assets acquired, and therefore no goodwill was recognised.

Tongshan Xiehe Wind Power Generation was established on 3 March 2015 in Xuzhou, Jiangsu Province, and is mainly engaged in wind power generation, wind power research and related technical consulting services. On the acquisition date, the entity is under construction. From the acquisition date to 31 December 2016, Tongshan Xiehe Wind Power Generation had not commenced operation.

(ii)In July 2016, the Company acquired 100% equity interests of Yangguang Cogeneration from Luoyang Shuiye Asset Investment Management Co., Ltd. for cash consideration of RMB7.89 million. The acquisition date was the date when the Company obtained control over Yangguang Cogeneration. The acquisition cost was less than the fair value of the identifiable net assets acquired, while the difference was credit to profit or loss.

Yangguang Cogeneration was established on 6 April 2004 in Luoyang, Henan Province, and is mainly engaged in production and supply of electric and heating power.

F-107
39Business combinations (Continued)

(b)Acquisition consideration and goodwill

  Tongshan Xiehe  Yangguang 
  Wind Power  Cogeneration 
       
Fair value of total identifiable net assets  3,000   137,811 
         
Difference between the acquisition cost and the fair value of the identifiable net assets acquired (Note 6)  -   (129,921)
         
Cash consideration  3,000   7,890 
         
         
Less: Cash and cash equivalents of acquirees  667   167,644 
         
Cash consideration paid/(received) for acquisition of subsidiaries, net of cash acquired  2,333   (159,754)

(c)The assets and liabilities arising from the acquisitions of above entities are as follows:

  Tongshan Xiehe  Tongshan Xiehe       
  Wind Power  Wind Power  Yangguang  Yangguang 
  Generation  Generation  Cogeneration  Cogeneration 
  Fair Value  Carrying Amount  Fair Value  Carrying Amount 
             
Bank balances and cash  667   667   167,644   167,644 
Account receivables  -   -   100,882   100,882 
Inventories  -   -   14,669   14,669 
Other current assets  -   -   5,353   5,353 
Property, plant and equipment  2,333   2,333   317,172   344,533 
Land use rights  -   -   61,027   19,336 
Other non-current assets  -   -   61   61 
                 
Account payable and other liabilities  -   -   53,994   53,994 
Tax payables  -   -   35,092   35,092 
Current portion of other non-current liabilities  -   -   256,923   256,923 
Deferred income tax liabilities  -   -   58,929   55,346 
Other non-current liabilities  -   -   124,059   124,059 
                 
Total identifiable net assets  3,000   3,000   137,811   127,064 


F-108
39Business combinations (Continued)

2015 Business combinations

On 13 October 2014, the Company entered into equity transfer agreements with Huaneng Group and HIPDC respectively to acquire:

·91.80% equity interests of Hainan Power from Huaneng Group
·75% equity interests of Wuhan Power from Huaneng Group
·53.45% equity interests of Suzhou Thermal Power from Huaneng Group
·97% equity interests of Dalongtan Hydropower from Huaneng Group
·100% equity interests of Hualiangting Hydropower from Huaneng Group
·60% equity interests of Chaohu Power from HIPDC
·100% equity interests of Ruijin Power, Anyuan Power, Jingmen Thermal Power and Yingcheng Thermal Power from HIPDC

These entities are all mainly engaged in power generation and sales business. In early January 2015 the acquisition was completed and since then the Company obtained the control over above mentioned entities. The acquired business contributed consolidated revenue of RMB15,477 million and consolidated net profit of RMB2,581 million to the Company and its subsidiaries for the period from the date of acquisition to 31 December 2015.

The total consideration is RMB9.647 billion after adjustment of the profits generated from the date of valuation to the acquisition date in accordance with the equity transfer agreements, which has been settled in cash in 2015.

Acquisition Date
Fair value of total identifiable net assets10,412,147
Non-controlling interests(1,934,865)
Goodwill1,169,966
Cash consideration9,647,248
Less: Bank balances and cash of acquirees972,686
Less: Restricted cash(189,637)
Cash and cash equivalents of acquirees783,049
Add: Cash paid for payables in relation to business combination of prior period23,683
Cash consideration paid for acquisition of subsidiaries, net of cash acquired8,887,882

Goodwill arising from the acquisitions is attributable to the synergies expected to arise after the acquisitions of the equity interests in the subsidiaries stated above, which mainly included goodwill arising from the acquisition of Hainan Power and Wuhan Power amounting to RMB506 million and RMB518 million respectively.

F-109
39Business combinations (Continued)

The assets and liabilities arising from the acquisitions of above entities are as follows:

  Hainan Power  Wuhan Power�� Suzhou Thermal Power  Dalongtan Hydropower  Hualiangting Hydropower 
     Acquiree’s     Acquiree’s     Acquiree’s     Acquiree’s     Acquiree’s 
     carrying     carrying     carrying     carrying     carrying 
  Fair value  amount  Fair value  amount  Fair value  amount  Fair value  amount  Fair value  amount 
                               
Bank balances and cash  269,420   269,420   241,796   241,796   25,718   25,718   3,709   3,709   11,470   11,470 
Property, plant and equipment  8,198,754   7,347,394   4,723,925   3,929,268   626,551   552,971   303,255   303,255   4,224   4,224 
Land use rights  1,328,452   412,525   1,312,397   186,236   81,075   20,104   12,420   12,420   32,707   32,707 
Deferred income tax assets  -   109,888   -   3,727   -   2,746   -   -   -   - 
Investment in an associate  136,244   136,244   -   -   -   -   -   -   -   - 
Available-for-sale financial assets  -   -   -   -   33   33   -   -   105   105 
Other non-current assets  26,823   25,180   -   -   373   373   -   -   207   207 
Inventories  167,476   167,476   234,750   234,750   25,508   25,508   92   92   359   359 
Receivables and other current assets  677,902   677,902   459,640   459,640   37,336   37,336   3,451   3,451   3,090   3,090 
Payables and other current liabilities  (586,322)  (586,322)  (480,956)  (480,956)  (95,216)  (95,216)  (9,959)  (9,959)  (32,021)  (32,021)
Salary and welfare payables  (74,801)  (74,801)  (20,336)  (20,336)  (4,270)  (4,270)  -   -   (2,387)  (2,387)
Borrowings  (5,380,813)  (5,380,813)  (2,844,530)  (2,844,530)  (230,000)  (230,000)  (199,187)  (199,187)  (10,000)  (10,000)
Deferred income tax liabilities  (332,344)  -   (476,477)  -   (30,892)  -   -   -   -   - 
Other non-current liabilities  (2,700)  (2,700)  (40,037)  (40,037)  (7,176)  (7,176)  (760)  (760)  -   - 
                                         
Total identifiable net assets  4,428,091   3,101,393   3,110,172   1,669,558   429,040   328,127   113,021   113,021   7,754   7,754 
                                         

  Chaohu Power  Ruijin Power  Anyuan Power  Jingmen Thermal Power  Yingcheng Thermal Power 
     Acquiree’s     Acquiree’s     Acquiree’s     Acquiree’s     Acquiree’s 
     carrying     carrying     carrying     carrying     carrying 
  Fair value  amount  Fair value  amount  Fair value  amount  Fair value  amount  Fair value  amount 
                               
Bank balances and cash  30,210   30,210   53,381   53,381   188,402   188,402   61,508   61,508   87,072   87,072 
Property, plant and equipment  3,170,347   2,598,201   2,028,220   1,942,631   3,330,391   3,323,710   2,467,152   2,465,509   1,609,179   1,609,642 
Land use rights  4,603   3,344   52,269   53,909   89,264   89,264   6,615   6,784   76,638   71,950 
Other non-current assets  230   230   294   294   83,030   83,030   88   88   -   - 
Inventories  131,697   131,697   115,013   115,013   1,984   1,984   30,529   30,529   -   - 
Receivables and other current assets  252,004   252,004   184,600   184,600   29,401   29,401   102,822   102,822   1,105   1,105 
Payables and other current liabilities  (275,897)  (275,897)  (161,977)  (161,977)  (700,972)  (700,972)  (379,138)  (379,138)  (346,586)  (346,586)
Salary and welfare payables  (916)  (916)  (1,596)  (1,596)  (56,984)  (56,984)  (868)  (868)  -   - 
Borrowings  (1,690,220)  (1,690,220)  (1,868,750)  (1,868,750)  (3,082,500)  (3,082,500)  (1,886,834)  (1,886,834)  (1,162,000)  (1,162,000)
Deferred income tax liabilities  (143,351)  -   (20,987)  -   (1,670)  -   (369)  -   (1,057)  - 
Other non-current liabilities  (932)  (932)  (110)  (110)  (25,288)  (25,288)  -   -   (54,977)  (54,977)
                                         
Total identifiable                                        
net assets/ (liabilities)  1,477,775   1,047,721   380,357   317,395   (144,942)  (149,953)  401,505   400,400   209,374   206,206 

F-110
39Business combinations (Continued)

2014 Business combinations

Acquisition of Zhumadian Wind Power

In November 2014, the Company acquired 90% equity interests of Zhumadian Wind Power from Henan Lantian Group Co., Ltd. The aggregate cash consideration of the acquisition amounted to RMB23.68 million. The fair values of assets and liabilities arising from the acquisition of Zhumadian Wind Power and non-controlling interest’s proportionate share of acquiree’s net assets on the acquisition date are as follows:

Zhumadian Wind Power
  Zhumadian Wind Power 
    
Bank balances and cash  9 
Other receivables  15,583 
Inventories  20 
Property, plant and equipment  10,750 
Payables and other liabilities  (48)
     
Total identifiable net assets  26,314 
Non-controlling interests  (2,631)
Goodwill  - 
     
Consideration  23,683 

As at 31 December 2014, Zhumadian Wind Power was still under construction.

2013 Business combinations


(a)Acquisition of Luoyang Cogeneration

In April 2013, the Company acquired 60% equity interests of Luoyang Cogeneration from Luoyang Silicon Industry Group Co., Ltd. and Luoyang Hairun Power Project Management Ltd. The aggregate cash consideration of the acquisition amounted to RMB180 million. The fair values of assets and liabilities arising from the acquisition of Luoyang Cogeneration and proportionate share of acquiree’s net assets by non-controlling interests on the acquisition date are as follows:

Luoyang Cogeneration
Bank balances and cash131,485
Other receivables2,316
Property, plant and equipment30,885
Land use rights145,075
Payables and other liabilities(9,761)
Total identifiable net assets300,000
Non-controlling interests(120,000)
Goodwill-
Consideration180,000

As at 31 December 2013, Luoyang Cogeneration was still under construction.

F-101F-111


39Business combinations (continued)

2013 Business combinations (continued)

(b)
Acquisition of control in Jinling CCGT
Jinling CCGT was previously an associate of the Company. In 2013, one of the non-controlling shareholders with 21% equity interests in Jinling CCGT entered into a voting in concert agreement with the Company whereby it agreed to vote the same in respect of significant financial and operating decisions made by the Company effective from 1 January 2013. As a result, the Company acquired control of Jinling CCGT since 1 January 2013.
Jinling CCGT is a limited liability company established on 6 December 2011 in Nanjing, Jiangsu Province. Jinling CCGT is primarily engaging in construction, management of cogeneration power plants and related projects. As at the acquisition date, Jinling CCGT was still under construction and its two power generation units went into operation in 2013 in succession. Financial information of Jinling CCGT is as follows:
ItemsFrom the acquisition date to 31 December 2013
Revenue697,176
Net loss(16,243)
Net cash outflow from operating activities(37,163)

The identifiable assets and liabilities of Jinling CCGT as at the acquisition date are as follows:

Jinling CCGT
Bank balances and cash78,249
Accounts receivable9,621
Property, plant and equipment733,602
Accounts payable(56,472)
Long-term loans(490,000)
Total identifiable net assets275,000
Non-controlling interests(134,750)
Net assets acquired140,250
Fair value of the investment in associate before the acquisition date140,250
2012 Business Combinations

There was no material business combination in 2012.


F-102

40Non-controlling interests

The following table summarizes the information relating to each of the Company and subsidiaries that have material non-controlling interests (“NCI”):

                         Other    
 Qinbei     Luohuang  Weihai  Jinling  Yueyang  Shidongkou     individually    
 Power  Beijing  Power  Power  Power  Power  Power  Yangliuqing  immaterial    
 Qinbei Power Company  Beijing Cogeneration  Luohuang Power Company  Weihai Power Company  Jinling Power Company  Yueyang Power Company  Shidongkou Power Company  Yangliuqing Cogeneration  Other individually immaterial subsidiaries  Total  Company  Cogeneration  Company  Company  Company  Company  Company  Cogeneration  subsidiaries  Total 
                                                            
NCI percentage  40%  59%  40%  40%  40%  45%  50%  45%        40%  59%  40%  40%  40%  45%  50%  45%      
                                                                            
31 December 2014                                      
31 December 2016
                                      
                                                                            
Non-current assets  12,468,950   4,861,762   4,491,788   5,016,286   6,053,110   5,481,010   4,184,272   2,753,641         11,210,604   5,821,110   3,966,880   4,988,112   5,426,759   4,958,325   3,917,340   2,654,085       
Current assets  1,671,490   1,348,041   967,057   643,829   681,848   1,675,476   479,770   635,546         1,472,192   1,041,957   864,069   508,493   649,446   826,089   380,641   563,023       
Non-current liabilities  (4,033,498)  (505,544)  (337,330)  (291,886)  (3,336,497)  (1,512,909)  (1,708,800)  (290,710)        (2,206,586)  (152,911)  (284,064)  (104,952)  (1,773,332)  (1,150,021)  (1,055,640)  (224,373)      
Current liabilities  (4,832,978)  (1,161,981)  (2,184,952)  (2,198,983)  (1,054,216)  (3,234,572)  (1,154,784)  (901,641)        (6,475,340)  (1,665,750)  (1,601,236)  (2,504,410)  (1,835,090)  (1,828,581)  (1,584,142)  (991,614)      
Net assets  5,273,964   4,542,278   2,936,563   3,169,246   2,344,245   2,409,005   1,800,458   2,196,836         4,000,870   5,044,406   2,945,649   2,887,243   2,467,783   2,805,812   1,658,199   2,001,121       
Carrying amount of NCI  2,088,919   2,570,827   1,153,607   1,267,699   937,720   1,082,027   900,229   987,681   3,664,506   14,653,215   1,614,264   2,928,015   1,157,242   1,154,897   987,135   1,260,591   829,099   899,609   5,352,890   16,183,742 
                                                                                
Revenue  7,202,737   5,522,496   3,790,158   4,462,576   4,603,881   3,414,762   2,212,549   2,469,628           5,006,349   4,476,729   2,436,586   3,217,209   3,734,108   2,716,817   1,915,915   1,773,869         
Net profit  1,148,208   1,267,225   307,786   990,936   575,309   381,660   415,819   455,002           457,311   788,899   122,508   507,900   655,568   243,913   297,211   177,447         
Total comprehensive income  1,148,208   1,267,225   307,786   990,936   575,309   381,660   415,819   455,002           457,311   788,899   122,508   507,900   655,568   243,913   297,211   177,447         
Profit allocated to NCI  459,283   747,663   123,114   396,374   230,124   171,747   207,909   204,751   264,090   2,805,055   182,924   465,450   49,003   203,160   262,227   109,761   148,606   79,851   326,578   1,827,560 
Other comprehensive loss allocated to NCI  -   -   -   -   -   -   -   -   (313)  (313)
Other comprehensive income allocated to NCI  -   -   -   -   -   -   -   -   484   484 
                                                                                
Cash flow from operating activities  2,086,088   1,544,626   838,484   1,522,446   1,278,901   939,572   740,734   667,560         
Cash flow from investment activities  (1,150,754)  (680,480)  (224,873)  (254,105)  (248,702)  (845,313)  (157,852)  (170,819)        
Cash flow from financing activities  (931,763)  (920,279)  (602,121)  (1,271,787)  (1,108,039)  (111,758)  (508,833)  (498,704)        
Net increase /(decrease) in cash and cash equivalents  3,571   (56,133)  11,490   (3,446)  (77,840)  (17,499)  74,049   (1,963)        
Dividends paid to NCI  -   155,911   100,000   200,011   210,169   141,683   200,000   99,972         
                                        
31 December 2013                                        
                                        
Non-current assets  12,846,706   4,993,083   4,697,318   5,210,683   7,614,270   5,730,660   4,353,809   2,805,530         
Current assets  1,739,894   945,067   980,195   693,725   1,031,919   1,071,740   443,995   606,043         
Non-current liabilities  (3,431,060)  (654,821)  (706,101)  (42,560)  (3,786,577)  (1,931,979)  (2,275,801)  (697,662)        
Current liabilities  (7,065,834)  (2,214,356)  (1,842,635)  (2,975,210)  (2,249,999)  (2,543,955)  (737,365)  (749,917)        
Net assets  4,089,706   3,068,973   3,128,777   2,886,638   2,609,613   2,326,466   1,784,638   1,963,994         
Carrying amount of NCI  1,635,882   1,810,694   1,251,511   1,154,655   1,043,845   1,046,910   892,319   883,797   3,022,696   12,742,309 
                                        
Revenue  7,740,172   4,109,609   5,083,562   4,403,700   5,815,540   4,051,236   2,869,727   2,577,167         
Net profit  989,508   260,224   629,482   831,852   1,017,767   379,155   533,979   252,446         
Total comprehensive income  989,508   260,224   629,482   831,852   1,017,767   379,155   533,979   252,446         
Profit allocated to NCI  395,803   153,532   251,793   332,741   407,107   170,620   266,990   113,601   381,807   2,473,994 
Other comprehensive loss allocated to NCI  -   -   -   -   -   -   -   -   (757)  (757)
                                                                                
Cash flow from operating activities  2,379,982   943,889   1,330,704   1,473,143   1,741,649   926,746   685,572   627,390           1,400,042   973,352   550,346   1,045,828   1,293,565   568,379   890,615   295,547         
Cash flow from investment activities  (792,933)  (352,980)  (260,088)  (313,930)  (304,778)  (320,987)  (127,757)  (116,495)          (312,604)  (540,151)  (189,599)  (273,117)  (37,274)  (62,622)  (258,892)  (197,600)        
Cash flow from financing activities  (1,960,638)  (564,632)  (1,079,801)  (1,256,761)  (1,480,323)  (648,793)  (643,589)  (504,954)          (1,247,836)  (344,718)  (319,643)  (786,471)  (1,255,955)  (521,249)  (462,075)  (58,293)        
Net (decrease)/increase in cash and cash equivalents  (373,589)  26,277   (9,185)  (97,548)  (43,452)  (43,044)  (85,774)  5,957           (160,398)  88,518   41,104   (13,760)  336   (15,492)  169,648   39,616         
Dividends paid to NCI  -   132,865   69,595   33,358   158,649   -   75,000   -           433,090   687,679   120,000   366,983   308,923   -   273,900   128,857         
                                        

F-103F-112


40Non-controlling interests (continued)(Continued)

                          Other    
  Qinbei     Luohuang  Weihai  Jinling  Yueyang  Shidongkou     individually    
  Power  Beijing  Power  Power  Power  Power  Power  Yangliuqing  immaterial    
  Company  Cogeneration  Company  Company  Company  Company  Company  Cogeneration  subsidiaries  Total 
NCI percentage  40%  59%  40%  40%  40%  45%  50%  45%      
                                       
31 December 2015
                                      
                                       
Non-current assets  11,739,361   5,193,038   4,154,105   4,934,579   5,746,576   5,297,441   3,924,128   2,699,074       
Current assets  1,511,345   1,203,956   943,954   464,234   733,084   752,111   461,184   455,209       
Non-current liabilities  (3,313,836)  (137,657)  (300,428)  (117,412)  (2,310,221)  (1,314,199)  (1,379,640)  (243,675)      
Current liabilities  (5,310,585)  (1,090,231)  (1,674,490)  (1,984,600)  (1,584,917)  (2,173,454)  (1,096,885)  (800,584)      
Net assets  4,626,285   5,169,106   3,123,141   3,296,801   2,584,522   2,561,899   1,908,787   2,110,024       
Carrying amount of NCI  1,864,430   3,036,024   1,228,238   1,318,720   1,033,831   1,150,830   954,394   948,615   6,016,659   17,551,741 
                                         
Revenue  6,078,743   5,675,930   3,313,706   3,941,344   3,785,240   3,045,746   2,115,996   1,999,749         
Net profit  1,196,791   1,308,936   486,578   1,019,397   857,881   452,894   459,330   319,976         
Total comprehensive income  1,196,791   1,308,936   486,578   1,019,397   857,881   452,894   459,330   319,976         
Profit allocated to NCI  478,716   772,272   194,631   407,759   343,153   203,802   229,665   143,989   833,187   3,607,174 
Other comprehensive income allocated to NCI  -   -   -   -   -   -   -   -   (96)  (96)
                                         
Cash flow from operating activities  2,541,580   1,488,085   932,367   1,513,744   1,338,323   1,016,136   834,278   571,512         
Cash flow from investment activities  (33,499)  (574,149)  (151,647)  (235,657)  (103,779)  538,740   (26,301)  (14,100)        
Cash flow from financing activities  (2,328,362)  (880,545)  (758,054)  (1,278,814)  (1,287,469)  (1,571,651)  (853,459)  (580,094)        
Net increase /(decrease) in cash and                                        
    cash equivalents  179,719   36,511   22,666   (727)  (52,925)  (16,775)  (45,482)  (22,599)        
Dividends paid to NCI  697,436   362,958   220,000   83,320   373,143   135,000   270,000   183,055         
                                         
31 December 2014
                                        
                                         
Non-current assets  12,468,950   4,861,762   4,491,788   5,016,286   6,053,110   5,481,010   4,184,272   2,753,641         
Current assets  1,671,490   1,348,041   967,057   643,829   681,848   1,675,476   479,770   635,546         
Non-current liabilities  (4,033,498)  (505,544)  (337,330)  (291,886)  (3,336,497)  (1,512,909)  (1,708,800)  (290,710)        
Current liabilities  (4,832,978)  (1,161,981)  (2,184,952)  (2,198,983)  (1,054,216)  (3,234,572)  (1,154,784)  (901,641)        
Net assets  5,273,964   4,542,278   2,936,563   3,169,246   2,344,245   2,409,005   1,800,458   2,196,836         
Carrying amount of NCI  2,088,919   2,570,827   1,153,607   1,267,699   937,720   1,082,027   900,229   987,681   3,664,506   14,653,215 
                                         
Revenue  7,202,737   5,522,496   3,790,158   4,462,576   4,603,881   3,414,762   2,212,549   2,469,628         
Net profit  1,148,208   1,267,225   307,786   990,936   575,309   381,660   415,819   455,002         
Total comprehensive income  1,148,208   1,267,225   307,786   990,936   575,309   381,660   415,819   455,002         
Profit allocated to NCI  459,283   747,663   123,114   396,374   230,124   171,747   207,909   204,751   264,090   2,805,055 
Other comprehensive income allocated to NCI  -   -   -   -   -   -   -   -   (313)  (313)
                                         
Cash flow from operating activities  2,086,088   1,544,626   838,484   1,522,446   1,278,901   939,572   740,734   667,560         
Cash flow from investment activities  (1,150,754)  (680,480)  (224,873)  (254,105)  (248,702)  (845,313)  (157,852)  (170,819)        
Cash flow from financing activities  (931,763)  (920,279)  (602,121)  (1,271,787)  (1,108,039)  (111,758)  (508,833)  (498,704)        
Net increase /(decrease) in cash and cash equivalents  3,571   (56,133)  11,490   (3,446)  (77,840)  (17,499)  74,049   (1,963)        
Dividends paid to NCI  -   155,911   100,000   200,011   210,169   141,683   200,000   99,972         

F-113
41Pending Arbitration


In April 2015, a subsidiary’s construction contractor filed for an arbitration, demanding a compensation of RMB83.46 million, inclusive of interests from the subsidiary. As the arbitration is ongoing, the amount of settlement cannot be estimated reliably. No provision has been recognized as at 31 December 2016.
  Qinbei Power Company  Beijing Cogeneration  Luohuang Power Company  Weihai Power Company  Jinling Power Company  Yueyang Power Company  Shidongkou Power Company  Yangliuqing Cogeneration  Other individually immaterial subsidiaries  Total 
                               
NCI percentage  40%  59%  40%  40%  40%  45%  50%  45%      
                                       
31 December 2012                                      
                                       
Non-current assets  12,433,411   4,981,131   4,944,450   5,430,101   8,033,948   5,798,508   4,559,723   2,898,232       
Current assets  1,528,059   782,727   1,050,783   711,054   1,044,944   1,188,235   523,252   551,242       
Non-current liabilities  (3,911,330)  (775,275)  (1,448,333)  (235,140)  (4,966,657)  (2,519,706)  (2,594,640)  (726,847)      
Current liabilities  (7,010,528)  (1,951,099)  (1,847,510)  (3,824,960)  (1,057,878)  (2,509,766)  (1,082,515)  (1,006,689)      
Net assets  3,039,612   3,037,484   2,699,390   2,081,055   3,054,357   1,957,271   1,405,820   1,715,938       
Carrying amount of NCI  1,215,845   1,792,116   1,079,756   832,422   1,221,743   880,772   702,910   772,172   1,332,472   9,830,208 
                                         
Revenue  6,322,927   3,981,246   4,343,146   4,369,510   5,902,752   3,331,508   2,929,123   2,473,610         
Net (loss)/profit  (455,310)  220,674   50,457   563,058   647,785   10,640   388,303   95,819         
Total comprehensive (loss)/income  (455,310)  220,674   50,457   563,058   647,785   10,640   388,303   95,819         
(Loss)/profit allocated to NCI  (182,124)  130,198   20,183   225,223   259,114   4,788   194,152   43,119   159,308   853,961 
Other comprehensive income allocated to NCI  -   -   -   -   -   -   -   -   1,195   1,195 
                                         
Cash flow from operating activities  1,402,214   829,378   871,119   1,302,405   1,757,588   472,564   1,395,089   547,213         
Cash flow from investment activities  (1,483,148)  (396,826)  (213,057)  (533,926)  (284,839)  (245,893)  (408,843)  (85,651)        
Cash flow from financing activities  417,198   (451,645)  (671,234)  (646,544)  (1,292,322)  (230,948)  (873,042)  (473,161)        
Net increase/(decrease) in cash and cash equivalents  336,264   (19,093)  (13,172)  121,935   180,427   (4,277)  113,204   (11,599)        
Dividends paid to NCI  5,274   195,709   41,595   -   84,008   -   -   -         
                                         


 
F-104

4142Subsequent eventevents

(a)After the end of the reporting period, the directors proposed a final dividend. Further details are disclosed in Note 22.

(b)
On 1314 October 2014,2016, the Company entered into equity transfer agreements with Huaneng Group and HIPDC to acquire the 91.80%80% interests of Huaneng HainanShandong Power Inc., 75%Limited, 100% interests of Wuhan Power, 53.45%Huaneng Jilin Generation Co., Ltd., 100% interests of Suzhou Thermal Power, 97% interests of the Enshi Qingjiang Dalongtan Hydropower DevelopmentHuaneng Heilongjiang Generation Co., Ltd. and 100%90% interests of Huaneng Hualiangting HydropowerHenan Zhongyuan Gas Power Generation Co., Ltd. from Huaneng Group at a total cash consideration of RMB7,337,647,400, and 60% interests of Huaneng Chaohu Power Generation Co., Ltd., 100% interests of Ruijin Power, 100% interests of Anyuan Power, 100% interests of Jingmen Thermal Power and 100% interests of Yingcheng Thermal Power from HIPDC at a total cash consideration of RMB1,938,178,900. On 8RMB15.114 billion. In January 2015,2017, according to the agreements, the Company paid 50% of the consideration to Huaneng Group and HIPDC, respectively.Group. The Company is still in the progressprocess of reviewing the nature and financial informationimpact of these newly acquired entities as of the acquisition date. The aforementioned acquired entities has been included in the Company’s consolidated financial statements since January 2017.

(c)On 13 March 2015, No.2 generation unit of Beijing Cogeneration, a subsidiary of the Company caught fire and ignited flammable materials. The four generation units at Beijing Cogeneration were suspended operation after the incident. After clean-up work and due enquiries with personnel at the scene on that day, it was confirmed that there was no casualties. The Company issued super short-term bonds with a face value of RMB4 billion bearing annual interest rate of 3.40% in January 2017, such bonds are denominated in RMB and Beijing Cogeneration are now organizing rescue, clean-up work and dealingmature in 270 days, with the aftermath.a par value of RMB100.

The Company issued super short-term bonds with a face value of RMB3 billion bearing annual interest rate of 3.67% in February 2017, such bonds are denominated in RMB and mature in 270 days, with a par value of RMB100.

The Company issued super short-term bonds with a face value of RMB3 billion bearing annual interest rate of 3.60% in March 2017, such bonds are denominated in RMB and mature in 180 days, with a par value of RMB100.


F-114
 
F-105
Signature
 
 
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and it has duly caused and authorized the undersigned to sign this annual report on its behalf.
 
 
Date: April 17, 2017
Huaneng Power International, Inc.
By:
/s/ Du Daming
Name:  
Du Daming
Title:
Vice President and Secretary to the Board