| · | 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.
The fair values of accounts receivable at fair value through other comprehensive income were measured using the discounted cash flows model. The model incorporates various market observable inputs including the annualised yields of similar securitisation products and interest rate curves. The carrying amounts of trade and bills receivables are the same as their fair values.
The contingent consideration is valued using discounted cash flows. The valuation model considers the present value of the expected future receivables discounted using a risk-adjusted discounted rate. As at 31 December 2019, the expected contingent considerations are determined based on the audited financial statements of the acquired entities for the year ended 31 December 2019.
The material other equity instrument investments in unlisted securities are valued using a market-base valuation technique based on assumptions that are not supported by observable market prices or rates. The Group determines comparable public companies based on industry, size, leverage and strategy and calculates an appropriate price multiple, such as price to book (“P/B”) multiple, for each comparable company identified.
3 | Financial and capital risks management (continued) |
| ·(b) | The fairFair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.estimation (continued) |
Instruments included in level 2 comprise forward exchange contracts, fuel oil swaps
| (i) | Fair value measurements (continued) |
Below is a summary of significant unobservable inputs to the valuation of financial instruments together with a quantitative sensitivity analysis as at 31 December 2019:
| Valuation technique | Significant unobservable input | Range | Sensitivity of fair value to the input | | | | | | Unlisted equity investments | Valuation multiples | Average P/B | 2019: 1.17 to 1.49 | 10% increase/decrease in multiple would result in increase/decrease in fair value by RMB70.24 million. | | | Discount for lack of marketability | 2019: 25% to 30.1% | 10% increase/decrease in multiple would result in decrease/increase in fair value by RMB30.02 million. |
The discount for lack of marketability represents the amounts of premiums and interest rate swaps.discounts determined by the Group that market participants would take into account when pricing the investments.
During the year ended 31 December 2016,2019, there are no transfers of financial instruments between level 1 and level 2, or transfers into or out of level 3.
The movements during the period in the balance of the Level 3 fair value measurements are as follows:
| | As at 31 December | | | | 2019 | | | 2018 | | Contingent consideration | | | | | | | Beginning of the year | | | 991,383 | | | | 859,547 | | Movement: | | | | | | | | | Gains on fair value changes | | | 17,175 | | | | 746,850 | | Profit compensation received from Huaneng Group | | | (550,831 | ) | | | (615,014 | ) | End of the year | | | 457,727 | | | | 991,383 | | Total gains for the year included in profit or loss for assets held at the end of the reporting period | | | 17,175 | | | | 746,850 | |
3 | Financial and capital risks management (continued) |
| (b) | Fair value estimation (continued) |
| (i) | Fair value measurements (continued) |
| | As at 31 December | | | | 2019 | | | 2018 | | Other equity instrument investments | | | | | | | Beginning of the year | | | 2,074,861 | | | | 2,072,365 | | Addition | | | 7,450 | | | | 450 | | Disposal | | | (1,250,000 | ) | | | - | | Fair value changes | | | (61,483 | ) | | | 2,046 | | End of the year | | | 770,828 | | | | 2,074,861 | | Changes in fair value recognised in other comprehensive income for the year | | | 46,113 | | | | 2,046 | |
| (ii) | Fair value disclosures |
The carrying value less provision for doubtful accountsloss allowances 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 subsidiariesGroup for similar financial instruments.
3 | Financial and capital risks management (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 RMB74.48RMB133.79 billion and RMB15.71RMB31.64 billion as at 31 December 2016 (2015: RMB78.312019 (2018: RMB149.76 billion and RMB23.15RMB30.08 billion), respectively. The aggregate book value of these liabilities was approximately RMB74.55RMB134.02 billion and RMB15.48RMB31.29 billion as at 31 December 2016 (2015: RMB78.382019 (2018: RMB150.17 billion and RMB22.74RMB29.98 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 statement of financial position. During 2016,2019, the strategy of the Company and its subsidiaries remained unchanged from 2015.2018. The debt ratio of the Company and its subsidiaries as at 31 December 20162019 was 67.54% (2015: 67.08%69.55% (2018: 72.35%).
4 | Critical accounting estimates and judgments |
Estimates and judgmentsjudgements 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 makeGroup makes 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 annuallyGroup performs annual tests on whether goodwill and power generation license have suffered any impairment in accordance with the accounting policies stated in Note 2(i) and 2(g), respectively.2(l). The recoverable amounts of CGU or CGUs to which goodwill and the power generation license havehas been allocated are determined based on value-in-use calculations. The annual goodwill impairment assessment was complex because the determination of the recoverable amount of the underlying CGUs involved estimates and judgments, including the future sales volumes, fuel prices, gross margin and terminal growth rate used to estimate future cash flows and discount rates applied to these forecasted future cash flows of the underlying CGUs. These calculations require the use of estimates (Note 12 and 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.judgments may be significantly affected by unexpected changes in future market or economic conditions.
4
| Critical accounting estimates and judgments (Continued) |
| (a)(b) | Accounting estimates on impairment of goodwill and power generation license (Continued)licence |
For goodwill allocated to CGUsThe Group performs annual tests on whether power generation licence have suffered any impairment in the PRC, changes of assumptions in tariff and fuel price could have affected the results of goodwill impairment assessment. As at 31 December 2016, if tariff had decreased by 1% or 5% from management’s estimates with other variables constantaccordance with the expectations,accounting policies stated in Note 2(l). The recoverable amounts of the Companypower generation licence are determined based on value-in-use calculations. The annual impairment assessment of the power generation licence was complex because the determination of the recoverable amount involved estimates and its subsidiaries would havejudgments, including the future sales volumes, fuel prices, gross margin and terminal growth rate used to recognize impairment against goodwillestimate future cash flows and discount rates applied to these forecasted future cash flows. These estimates and judgments may be significantly affected by approximately RMB176 million and RMB1,043 million, respectively. If fuel price had increased by 1%unexpected changes in future market or 5% from the management’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to recognize impairment against goodwill by RMB37 million and RMB899 million, respectively.economic conditions.
For the sensitivity analysis of power generation license and goodwill of Tuas Power, please refer to Note 12 and 15.
| (b)(c) | Useful life of power generation license |
As at the year end, management of the Company and its subsidiaries assessed thatGroup assesses whether the estimated useful life forof its power generation licenselicence is indefinite. This assessment is based on the expected renewal of power generation licenselicence 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 the power generation license.licence.
4 | (c)Critical accounting estimates and judgments (continued) |
| (d) | Useful lives of property, plant and equipment |
Management of the Company and its subsidiariesGroup determines the estimated useful lives of property, plant and equipment and respective depreciation. The accounting estimate is based on the expected wearswear and tearstear incurred during power generation. WearsWear and tearstear 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)(e) | EstimatedAccounting estimates on impairment of other non-current assetsproperty, plant and equipment |
The Company and its subsidiaries test whether property, plant and equipment, land use rights and mining rights suffered from 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 amountassessment of property plant and equipment land use rightswas complex due to the significant estimates and mining rights. F-37
judgments involved in the projections of future cash flows, including the future sales volumes, fuel prices, and discount rates applied to these forecasted future cash flows. These estimates and judgments may be significantly affected by unexpected changes in future market or economic conditions.
4 | Critical 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 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 RMB92 million and RMB779 million, respectively. If fuel price had increased by 1% or 5% from the management’s estimates with other variables constant with the expectations, the 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 RMB38 million, respectively.
| (e)(f) | Approval of construction of new power plants |
The receiving of the ultimate approvals from the National Development and Reform Commission (“NDRC”) on certain power plant construction projects of the Company and its subsidiariesGroup is a critical estimate and judgmentjudgement of the directors. Such estimatesestimate and judgmentsjudgement 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 subsidiariesGroup will receive final approvals from the NDRC on the related power plant projects. Deviation from the estimate and judgmentjudgement could result in a significant adjustment to the carrying amount of property, plant and equipment.non-current assets.
| (f)(g) | Deferred tax assets |
The Company and its subsidiaries recognizedGroup recognises 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,utilised, using tax rates that are expected to be applied in the period when the asset is recovered. The management assesses theRecognition of deferred tax assets based on the expected amountwas complex because it requires significant estimation and timing ofjudgment, and it involves significant assumptions, including future taxable profit,profits, future tax rates, the enactedreversal of deductible and taxable temporary differences, and the possible utilisation of tax lawslosses carried forward that could be significantly affected by unexpected changes in tax law framework 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.future market or economic conditions.
4 | Critical accounting estimates and judgments (continued) |
| (h) | Leases – Estimating the incremental borrowing rate |
The Group cannot readily determine the interest rate implicit in certain leases, and therefore, it uses an incremental borrowing rate (“IBR”) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group “would have to pay”, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when it needs to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).
5 | Revenue and segment information |
| (a) | Disaggregation of revenue |
In the following table, revenue is disaggregated by major products and/or service lines of revenue recognition. The table also includes a reconciliation of the disaggregated operating revenue to the Group’s reportable segments (Note 5 (b)).
For the year ended 31 December 2019 | | PRC power segment | | | Overseas segment | | | All other segments | | | Inter-segment revenue | | | Total | | | | | | | Note i | | | | | | | | | | | -Sales of power and heat | | | 152,806,163 | | | | 12,129,652 | | | | — | | | | — | | | | 164,935,815 | | -Sales of coal and raw materials | | | 1,353,538 | | | | 527,798 | | | | — | | | | — | | | | 1,881,336 | | -Port service | | | — | | | | — | | | | 505,485 | | | | (330,272 | ) | | | 175,213 | | -Transportation service | | | — | | | | — | | | | 166,816 | | | | (118,297 | ) | | | 48,519 | | -Lease income | | | 161,525 | | | | 1,689,878 | | | | — | | | | — | | | | 1,851,403 | | -Others | | | 1,320,409 | | | | 3,788,133 | | | | 28,185 | | | | (19,612 | ) | | | 5,117,115 | | Total | | | 155,641,635 | | | | 18,135,461 | | | | 700,486 | | | | (468,181 | ) | | | 174,009,401 | | Revenue: | | | | | | | | | | | | | | | | | | | | | -From contracts with customers within the scope of IFRS15 | | | | | | | | | | | | | | | | | | | 172,157,998 | | -From other sources | | | | | | | | | | | | | | | | | | | 1,851,403 | |
For the year ended 31 December 2018 | | PRC power segment | | | Overseas segment | | | All other segments | | | Inter-segment revenue | | | Total | | -Sales of power and heat | | | 154,816,070 | | | | 11,490,601 | | | | — | | | | — | | | | 166,306,671 | | -Sales of coal and raw materials | | | 649,374 | | | | 214,402 | | | | — | | | | — | | | | 863,776 | | -Port service | | | — | | | | — | | | | 441,637 | | | | (296,639 | ) | | | 144,998 | | -Transportation service | | | — | | | | — | | | | 206,691 | | | | (153,334 | ) | | | 53,357 | | -Others | | | 1,860,823 | | | | 297,857 | | | | 45,071 | | | | (21,929 | ) | | | 2,181,822 | | Total | | | 157,326,267 | | | | 12,002,860 | | | | 693,399 | | | | (471,902 | ) | | | 169,550,624 | | Revenue: | | | | | | | | | | | | | | | | | | | | | -From contracts with customers within the scope of IFRS15 | | | | | | | | | | | | | | | | | | | 169,467,647 | | -From other sources | | | | | | | | | | | | | | | | | | | 82,977 | |
For the year ended 31 December 2017 | | PRC power segment | | | Overseas segment | | | All other segments | | | Inter-segment revenue | | | Total | | | | | | | | | | | | | | | | | | -Sales of power and heat | | | 138,950,879 | | | | 9,974,563 | | | | - | | | | - | | | | 148,925,442 | | -Sales of coal and raw materials | | | 1,143,299 | | | | - | | | | - | | | | - | | | | 1,143,299 | | -Port service | | | - | | | | - | | | | 470,498 | | | | (238,138 | ) | | | 232,360 | | -Transportation service | | | - | | | | - | | | | 181,117 | | | | (107,287 | ) | | | 73,830 | | -Others | | | 1,973,452 | | | | 103,468 | | | | 42,790 | | | | (35,197 | ) | | | 2,084,513 | | | | | | | | | | | | | | | | | | | | | | | Total | | | 142,067,630 | | | | 10,078,031 | | | | 694,405 | | | | (380,622 | ) | | | 152,459,444 | | | | | | | | | | | | | | | | | | | | | | | Revenue: | | | | | | | | | | | | | | | | | | | | | From contracts with customer s within the scope of IFRS15 | | | | | | | | | | | | | | | | | | | 152,363,979 | | -From other sources | | | | | | | | | | | | | | | | | | | 95,465 | |
5 | Revenue and segment information (continued) |
| (a) | Disaggregation of revenue (continued) |
Note i: Overseas segment mainly consists of the operations in Singapore and the operation in Pakistan (consolidated since 31 December 2018).
The revenue from the sale of power and heat and sale of coal and raw materials is recognised at a point in time upon the transfer of products, whereas the revenue from port service, transportation service, maintenance service, and heating pipeline service is recognised over time during the year are as follows:provision of service.
| | For the year ended 31 December | | | | 2016 | | | 2015 | | | 2014 | | | | | | | | | | | | Sales of power and heat | | | 112,794,536 | | | | 127,849,408 | | | | 124,561,854 | | Port service | | | 237,347 | | | | 211,685 | | | | 204,763 | | Transportation service | | | 105,505 | | | | 104,721 | | | | 135,256 | | Others | | | 676,848 | | | | 739,059 | | | | 504,982 | | Total | | | 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 subsidiariesGroup in order to assess performance and allocate resources. The Company has determined the operating segments based on these reports. The reportable segments of the CompanyGroup are the PRC power segment, Singaporeoverseas 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 disposalother equity instrument investments, share of available-for-sale financial assetprofits of China Huaneng Finance Co., Ltd. (“Huaneng Finance”) and operating results of the centrally managed and resource allocation functions of headquarters (“Segmentsegment 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 assetsother equity instrument investments, investment in Huaneng Finance 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 assets and total liabilities of the consolidated statement of financial position. 5 | Revenue and segment information (Continued) |
All sales among the operating segments have been eliminated as internal transactions when preparing consolidated financial statements.
| | | | | | | | (Under PRC GAAP) | | | | PRC power segment | | | Singapore segment | | | All other segments | | | Total | | | | | | | | | | | | | | | For the year ended 31 December 2016 | | | | | | | | | | | | | Total revenue | | | 104,746,690 | | | | 8,758,822 | | | | 634,965 | | | | 114,140,477 | | Inter-segment revenue | | | - | | | | - | | | | (326,241 | ) | | | (326,241 | ) | Revenue from external customers | | | 104,746,690 | | | | 8,758,822 | | | | 308,724 | | | | 113,814,236 | | Segment results | | | 14,215,671 | | | | (282,703 | ) | | | (35,371 | ) | | | 13,897,597 | | Interest income | | | 76,768 | | | | 69,672 | | | | 623 | | | | 147,063 | | Interest expense | | | (6,067,194 | ) | | | (481,263 | ) | | | (137,825 | ) | | | (6,686,282 | ) | Impairment (loss)/reversal | | | (1,197,382 | ) | | | 899 | | | | (8,475 | ) | | | (1,204,958 | ) | Depreciation and amortization | | | (13,786,933 | ) | | | (778,426 | ) | | | (203,493 | ) | | | (14,768,852 | ) | Net loss on disposal of non-current assets | | | (577,322 | ) | | | (172 | ) | | | (14,303 | ) | | | (591,797 | ) | Share of profits less losses of associates and joint ventures | | | 1,104,614 | | | | - | | | | 76,477 | | | | 1,181,091 | | Income tax expense | | | (3,681,737 | ) | | | 44,135 | | | | 57,489 | | | | (3,580,113 | ) | | | | | | | | | | | | | | | | | | For the year ended 31 December 2015 | | | | | | | | | | | | | | | | | Total revenue | | | 118,418,506 | | | | 10,143,793 | | | | 588,266 | | | | 129,150,565 | | Inter-segment revenue | | | - | | | | - | | | | (245,692 | ) | | | (245,692 | ) | Revenue from external customers | | | 118,418,506 | | | | 10,143,793 | | | | 342,574 | | | | 128,904,873 | | Segment results | | | 24,073,432 | | | | (313,253 | ) | | | (281,457 | ) | | | 23,478,722 | | Interest income | | | 93,324 | | | | 66,898 | | | | 501 | | | | 160,723 | | Interest expense | | | (7,181,116 | ) | | | (452,034 | ) | | | (163,325 | ) | | | (7,796,475 | ) | Impairment (loss)/reversal | | | (2,913,766 | ) | | | 1,744 | | | | (178,131 | ) | | | (3,090,153 | ) | Depreciation and amortization | | | (13,244,965 | ) | | | (772,003 | ) | | | (245,936 | ) | | | (14,262,904 | ) | Net (loss)/gain on disposal of non-current assets | | | (427,286 | ) | | | 22,450 | | | | (1 | ) | | | (404,837 | ) | Share of profits less losses of associates and joint ventures | | | 1,421,072 | | | | - | | | | 24,915 | | | | 1,445,987 | | Income tax expense | | | (6,104,619 | ) | | | 254,772 | | | | 14,397 | | | | (5,835,450 | ) | | | | | | | | | | | | | | | | | | For the year ended 31 December 2014 (Restated*) | | | | | | | | | | | | | | | | | Total revenue | | | 125,271,587 | | | | 14,370,406 | | | | 537,452 | | | | 140,179,445 | | Inter-segment revenue | | | - | | | | - | | | | (152,755 | ) | | | (152,755 | ) | Revenue from external customers | | | 125,271,587 | | | | 14,370,406 | | | | 384,697 | | | | 140,026,690 | | Segment results | | | 22,113,100 | | | | 138,143 | | | | (850,805 | ) | | | 21,400,438 | | Interest income | | | 97,012 | | | | 72,128 | | | | 813 | | | | 169,953 | | Interest expense | | | (7,803,090 | ) | | | (426,019 | ) | | | (172,189 | ) | | | (8,401,298 | ) | Impairment (loss)/reversal | | | (1,488,619 | ) | | | 3,228 | | | | (696,812 | ) | | | (2,182,203 | ) | Depreciation and amortization | | | (12,131,006 | ) | | | (821,574 | ) | | | (180,484 | ) | | | (13,133,064 | ) | Net loss on disposal of non-current assets | | | (469,819 | ) | | | (5 | ) | | | (8 | ) | | | (469,832 | ) | Share of profits less losses of associates and joint ventures | | | 1,143,326 | | | | - | | | | 49,208 | | | | 1,192,534 | | Income tax expense | | | (6,204,709 | ) | | | (8,767 | ) | | | 1,590 | | | | (6,211,886 | ) |
5 | Revenue 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 | ) |
| (b) | Segment information (continued) |
| | | | | | | | | | | (Under PRC GAAP) | | | | PRC power segment | | | Overseas segment | | | All other segments | | | Total | | For the year ended 31 December 2019 | | | | | | | | | | | | | Total revenue | | | 155,641,635 | | | | 17,610,861 | | | | 700,486 | | | | 173,952,982 | | Intersegment revenue | | | - | | | | - | | | | (468,181 | ) | | | (468,181 | ) | External revenue | | | 155,641,635 | | | | 17,610,861 | | | | 232,305 | | | | 173,484,801 | | Segment results | | | 4,808,383 | | | | 162,465 | | | | (204,137 | ) | | | 4,766,711 | | Interest income | | | 162,973 | | | | 100,177 | | | | 1,404 | | | | 264,554 | | Interest expense | | | (9,260,294 | ) | | | (1,308,380 | ) | | | (114,490 | ) | | | (10,683,164 | ) | Impairment loss | | | (5,320,376 | ) | | | (6,119 | ) | | | (485,325 | ) | | | (5,811,820 | ) | Credit loss | | | (6,570 | ) | | | (67,987 | ) | | | - | | | | (74,557 | ) | Depreciation and amortisation | | | (19,953,257 | ) | | | (752,285 | ) | | | (167,553 | ) | | | (20,873,095 | ) | Net gain / (loss) on disposal of non-current assets | | | 132,902 |
| | | 4,189 |
| | | (3 | )
| | | 137,088 |
| Share of profits less losses of associates and joint ventures | | | 745,980 | | | | - | | | | 240,330 | | | | 986,310 | | Income tax expense | | | (2,501,763 | ) | | | 89,006 | | | | (22,140 | ) | | | (2,434,897 | ) |
| | PRC power segment | | | Overseas segment | | | All other segments | | | Total | | For the year ended 31 December 2018 | | | | | | | | | | | | | Total revenue | | | 157,636,808 | | | | 12,002,860 | | | | 693,399 | | | | 170,333,067 | | Inter-segment revenue | | | - | | | | - | | | | (471,902 | ) | | | (471,902 | ) | External revenue | | | 157,636,808 | | | | 12,002,860 | | | | 221,497 | | | | 169,861,165 | | Segment results | | | 3,596,245 | | | | (363,636 | ) | | | 389,876 | | | | 3,622,485 | | Interest income | | | 163,699 | | | | 69,841 | | | | 2,198 | | | | 235,738 | | Interest expense | | | (9,879,911 | ) | | | (465,099 | ) | | | (101,694 | ) | | | (10,446,704 | ) | Impairment loss | | | (895,121 | ) | | | (251,031 | ) | | | - | | | | (1,146,152 | ) | Credit loss | | | (38,368 | ) | | | (4,210 | ) | | | - | | | | (42,578 | ) | Depreciation and amortization | | | (18,909,485 | ) | | | (774,625 | ) | | | (142,179 | ) | | | (19,826,289 | ) | Net gain/ (loss) on disposal of non-current assets | | | 70,186 | | | | (1,052 | ) | | | (11 | ) | | | 69,123 | | Share of profits less losses of associates and joint ventures | | | 640,057 | | | | 737,185 | | | | 307,417 | | | | 1,684,659 | | Income tax expense | | | (1,146,997 | ) | | | 134,573 | | | | (16,523 | ) | | | (1,028,947 | ) |
5 | Revenue and segment information (continued) |
| (b) | Segment information (continued) |
| | | | | | | | | | | (Under PRC GAAP) | | | | PRC power segment | | | Overseas segment | | | All other segments | | | Total | | For the year ended 31 December 2017 | | | | | | | | | | | | | Total revenue | | | 142,578,381 | | | | 10,078,031 | | | | 694,405 | | | | 153,350,817 | | Inter-segment revenue | | | - | | | | - | | | | (380,622 | ) | | | (380,622 | ) | External revenue | | | 142,578,381 | | | | 10,078,031 | | | | 313,783 | | | | 152,970,195 | | Segment results | | | 2,307,505 | | | | (613,572 | ) | | | 302,191 | | | | 1,996,124 | | Interest income | | | 128,564 | | | | 70,756 | | | | 1,223 | | | | 200,543 | | Interest expense | | | (9,128,621 | ) | | | (450,928 | ) | | | (145,112 | ) | | | (9,724,661 | ) | Impairment loss | | | (1,202,064 | ) | | | (994 | ) | | | (19,742 | ) | | | (1,222,800 | ) | Depreciation and amortization | | | (18,361,594 | ) | | | (856,979 | ) | | | (189,764 | ) | | | (19,408,337 | ) | Net loss on disposal of non-current assets | | | (580,325 | ) | | | (995 | ) | | | (3 | ) | | | (581,323 | ) | Share of profits less losses of associates and joint ventures | | | 28,796 | | | | (36,114 | ) | | | 307,923 | | | | 300,605 | | Income tax expense | | | (1,675,083 | ) | | | 99,150 | | | | (5,386 | ) | | | (1,581,319 | ) |
| | | | | | | | | | | (Under PRC GAAP) | | | | PRC power segment | | | Overseas segment | | | All other segments | | | Total | | 31 December 2019 | | | | | | | | | | | | | Segment assets | | | 354,648,084 | | | | 43,122,947 | | | | 9,857,566 | | | | 407,628,597 | | Including: | | | | | | | | | | | | | | | | | Additions to non-current assets (excluding financial assets and deferred income tax assets) | | | 39,564,514 | | | | 716,642 | | | | 251,957 | | | | 40,533,113 | | Investments in associates | | | 13,187,050 | | | | - | | | | 3,540,265 | | | | 16,727,315 | | Investments in joint ventures | | | 1,239,866 | | | | - | | | | 1,232,556 | | | | 2,472,422 | | Segment liabilities | | | (262,154,063 | ) | | | (27,397,122 | ) | | | (2,552,860 | ) | | | (292,104,045 | ) | | | | | | | | | | | | | | | | | | 31 December 2018 | | | | | | | | | | | | | | | | | Segment assets | | | 345,057,426 | | | | 40,886,478 | | | | 10,406,648 | | | | 396,350,552 | | Including: | | | | | | | | | | | | | | | | | Additions to non-current assets (excluding financial assets and deferred income tax assets) | | | 18,467,651 | | | | 581,225 | | | | 492,585 | | | | 19,541,461 | | Investments in associates | | | 12,351,738 | | | | - | | | | 3,275,398 | | | | 15,627,136 | | Investments in joint ventures | | | 1,111,854 | | | | - | | | | 1,239,876 | | | | 2,351,730 | | Segment liabilities | | | (269,224,115 | ) | | | (25,600,861 | ) | | | (2,683,920 | ) | | | (297,508,896 | ) |
5 | Revenue and segment information (continued) |
| (b) | Segment information (continued) |
A reconciliation of external 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 | | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | External revenue (PRC GAAP) | | | 173,484,801 | | | | 169,861,165 | | | | 152,970,195 | | Reconciling item: | | | | | | | | | | | | | Impact of restatement under PRC GAAP in relation to business combination under common control | | | - | | | | (310,541 | ) | | | (510,751 | ) | Impact of recognition of BOT* related revenue under IFRS | | | 524,600 | | | | - | | | | - | | Operating revenue per IFRS consolidated statement of comprehensive income | | | 174,009,401 | | | | 169,550,624 | | | | 152,459,444 | |
*BOT refer to the build-operate-transfer (Note 3)
A reconciliation of segment result to profit before income tax expense is provided as follows:
| | For the year ended 31 December | | | | 2016 | | | 2015 | | | 2014(Restated*) | | | | | | | | | | | | Segment results (PRC GAAP) | | | 13,897,597 | | | | 23,478,722 | | | | 21,400,438 | | Reconciling items: | | | | | | | | | | | | | Loss related to the headquarter | | | (699,053 | ) | | | (327,262 | ) | | | (87,313 | ) | Investment income from China | | | | | | | | | | | | | Huaneng Finance Co., Ltd. | | | | | | | | | | | | | (“Huaneng Finance”) | | | 132,018 | | | | 135,971 | | | | 156,061 | | Dividend income of available-for-sale financial assets | | | 103,037 | | | | 97,696 | | | | 102,229 | | 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 | | | 13,813,138 | | | | 22,958,050 | | | | 19,049,580 | |
5 | Revenue and segment information (Continued) |
| | For the year ended 31 December | | | | 2019 | | | 2018 | | | 2017 | | Segment results (PRC GAAP) | | | 4,766,711 | | | | 3,622,485 | | | | 1,996,124 | | Reconciling items: | | | | | | | | | | | | | Loss related to the headquarters | | | (155,395 | ) | | | (354,162 | ) | | | (170,210 | ) | Share of profits of associate-Huaneng Finance | | | 200,810 | | | | 166,864 | | | | 143,794 | | Dividend income of available-for-sale financial assets | | | - | | | | - | | | | 124,918 | | Dividend income of other equity instruments investments | | | 685 | | | | 1,168 | | | | - | | Gains on disposal of available-for-sale financial asset | | | - | | | | - | | | | 1,479,732 | | Impact of restatement under PRC GAAP in relation to business combination under common control | | | - | | | | 7,121 | | | | 145,682 | | Impact of other IFRS adjustments* | | | (1,693,351 | ) | | | (1,470,329 | ) | | | (918,307 | ) | Profit before income tax expense per IFRS consolidated statement of comprehensive income | | | 3,119,460 | | | | 1,973,147 | | | | 2,801,733 | |
Reportable segments’ assets are reconciled to total assets as follows:
| | As at 31 December | | | | | 2016 | | | 2015 | | | As at 31 December | | | | | | | | | | 2019 | | | 2018 | | Total segment assets (PRC GAAP) | | | 302,586,044 | | | | 291,567,473 | | | 407,628,597 | | | 396,350,552 | | Reconciling items: | | | | | | | | | | | | | | | Investment in Huaneng Finance | | | 1,314,603 | | | | 1,329,753 | | | 1,416,183 | | | 1,391,431 | | Deferred income tax assets | | | 1,558,670 | | | | 1,305,548 | | | 3,271,488 | | | 3,143,465 | | Prepaid income tax | | | 141,423 | | | | 2,393 | | | 139,617 | | | 134,477 | | Available-for-sale financial assets | | | 3,456,032 | | | | 5,127,863 | | | Other equity instrument investments | | | 779,217 | | | 2,083,419 | | Corporate assets | | | 360,854 | | | | 396,693 | | | 361,441 | | | 338,113 | | Impact of other IFRS adjustments** | | | 5,422,113 | | | | 9,136,631 | | | Impact of other IFRS adjustments* | | | | 14,653,520 | | | | 16,461,854 | | Total assets per IFRS consolidated statement of financial position | | | 314,839,739 | | | | 308,866,354 | | | | 428,250,063 | | | | 419,903,311 | |
5 | Revenue and segment information (continued) |
| (b) | Segment information (continued) |
Reportable segments’ liabilities are reconciled to total liabilities as follows:
| | As at 31 December | | | | | 2016 | | | 2015 | | | As at 31 December | | | | | | | | | | 2019 | | | 2018 | | Total segment liabilities (PRC GAAP) | | | (206,138,088 | ) | | | (196,380,197 | ) | | (292,104,045 | ) | | (297,508,896 | ) | Reconciling items: | | | | | | | | | | | | | | | Current income tax liabilities | | | (440,791 | ) | | | (1,054,246 | ) | | (748,957 | ) | | (231,299 | ) | Deferred income tax liabilities | | | (1,355,099 | ) | | | (1,417,972 | ) | | (996,021 | ) | | (1,050,326 | ) | Corporate liabilities | | | (4,717,617 | ) | | | (4,937,450 | ) | | (2,458,677 | ) | | (2,864,737 | ) | Impact of other IFRS adjustments** | | | (1,407 | ) | | | (3,382,800 | ) | | Impact of other IFRS adjustments* | | | | (1,563,317 | ) | | | (2,126,383 | ) | Total liabilities per IFRS consolidated statement of financial position | | | (212,653,002 | ) | | | (207,172,665 | ) | | | (297,871,017 | ) | | | (303,781,641 | ) |
Other material items: | | 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 | | | Reportable segment total | | | Headquarters | | | Share of profits of 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 2016 | | | | | | | | | | | | | | | | | | | | For the year ended 31 December 2019 | | | | | | | | | | | | | | | | | | | | Total revenue | | | 173,484,801 | | | - | | | - | | | - | | | 524,600 | | | 174,009,401 | | Interest expense | | | (6,686,282 | ) | | | (131,244 | ) | | | - | | | | - | | | | - | | | | (6,817,526 | ) | | (10,683,164 | ) | | (79,554 | ) | | - | | | - | | | - | | | (10,762,718 | ) | Depreciation and amortization | | | (14,768,852 | ) | | | (48,934 | ) | | | - | | | | - | | | | (344,929 | ) | | | (15,162,715 | ) | | Depreciation and amortisation | | | (20,873,095 | ) | | (14,147 | ) | | - | | | - | | | (1,079,563 | ) | | (21,966,805 | ) | Impairment loss | | | (5,811,820 | ) | | - | | | - | | | - | | | (373,037 | ) | | (6,184,857 | ) | Credit loss | | | (74,557 | ) | | - | | | - | | | - | | | - | | | (74,557 | ) | Share of profits less losses of associates and joint ventures | | | 986,310 | | | - | | | 200,810 | | | - | | | (1,498 | ) | | 1,185,622 | | Net gain/(loss) on disposal of non-current assets | | | 137,088 |
| | - | | | - | | | - | | | (67,639 | )
| | 69,449 |
| Income tax expense | | | (2,434,897 | ) | | - | | | - | | | - | | | 423,642 | | | (2,011,255 | ) | For the year ended 31 December 2018 | | | | | | | | | | | | | | | | | | | | Total revenue | | | 169,861,165 | | | - | | | - | | | (310,541 | ) | | - | | | 169,550,624 | | Interest expense | | | (10,446,704 | ) | | (98,398 | ) | | - | | | 58,690 | | | - | | | (10,486,412 | ) | Depreciation and amortisation | | | (19,826,289 | ) | | (26,122 | ) | | - | | | 167,910 | | | (1,231,613 | ) | | (20,916,114 | ) | Impairment loss | | | (1,146,152 | ) | | - | | | - | | | (8 | ) | | (650,322 | ) | | (1,796,482 | ) | Credit loss | | | (42,578 | ) | | - | | | - | | | 1,611 | | | - | | | (40,967 | ) | Share of profits less losses of associates and joint ventures | | | 1,684,659 | | | - | | | 166,864 | | | - | | | (28,108 | ) | | 1,823,415 | | Net gain/(loss) on disposal of non-current assets | | | 69,123 | | | (5 | ) | | - | | | - | | | (26,612 | ) | | 42,506 | | Income tax expense | | | (1,028,947 | ) | | - | | | - | | | 3,936 | | | 381,838 | | | (643,173 | ) | For the year ended 31 December 2017 | | | | | | | | | | | | | | | | | | | | Total revenue | | | 152,970,195 | | | - | | | - | | | (510,751 | ) | | - | | | 152,459,444 | | Interest expense | | | (9,724,661 | ) | | (126,900 | ) | | - | | | 102,557 | | | - | | | (9,749,004 | ) | Depreciation and amortisation | | | (19,408,337 | ) | | (38,819 | ) | | - | | | 280,295 | | | (1,468,972 | ) | | (20,635,833 | ) | Impairment loss | | | (1,204,958 | ) | | | - | | | | - | | | | - | | | | - | | | | (1,204,958 | ) | | (1,222,800 | ) | | - | | | - | | | 34,313 | | | 1,275 | | | (1,187,212 | ) | Share of profits less losses of associates and joint ventures | | | 1,181,091 | | | | - | | | | 132,018 | | | | - | | | | (14,220 | ) | | | 1,298,889 | | | 300,605 | | | - | | | 143,794 | | | - | | | (19,184 | ) | | 425,215 | | Net loss on disposal of non-current assets | | | (591,797 | ) | | | (14 | ) | | | - | | | | - | | | | 1,762 | | | | (590,049 | ) | | Net (loss)/gain on disposal of non-current assets | | | (581,323 | ) | | 3,174 | | | - | | | (20 | ) | | (38,287 | ) | | (616,456 | ) | Income tax expense | | | (3,580,113 | ) | | | - | | | | - | | | | - | | | | 114,962 | | | | (3,465,151 | ) | | (1,581,319 | ) | | - | | | - | | | 7,851 | | | 355,942 | | | (1,217,526 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | For the year ended 31 December 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | Interest expense | | | (7,796,475 | ) | | | (149,259 | ) | | | - | | | | - | | | | - | | | | (7,945,734 | ) | | Depreciation and amortization | | | (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 | | | 1,445,987 | | | | - | | | | 135,971 | | | | - | | | | (55,983 | ) | | | 1,525,975 | | | Net loss on disposal of non-current assets | | | (404,837 | ) | | | (6 | ) | | | - | | | | - | | | | (33,478 | ) | | | (438,321 | ) | | Income tax expense | | | (5,835,450 | ) | | | - | | | | - | | | | - | | | | 136,507 | | | | (5,698,943 | ) | |
5 | Revenue and segment information (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.(continued) |
| *(b) | Segment information (continued) |
| * | Other GAAP adjustments above primarily represented the classification adjustments and other adjustments.adjustments related to business combination and borrowing cost. Other than the classification adjustments, the differences will be gradually eliminated following subsequent depreciation and amortizationamortisation 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 | | | | | 2016 | | | 2015 | | | 2014 | | | For the year ended 31 December | | | | | | | | | | | | | 2019 | | | 2018 | | | 2017 | | PRC | | | 105,055,414 | | | | 118,761,080 | | | | 111,036,449 | | | 155,873,940 | | | 157,547,764 | | | 142,381,413 | | Singapore | | | 8,758,822 | | | | 10,143,793 | | | | 14,370,406 | | | Overseas | | | | 18,135,461 | | | | 12,002,860 | | | | 10,078,031 | | Total | | | 113,814,236 | | | | 128,904,873 | | | | 125,406,855 | | | | 174,009,401 | | | | 169,550,624 | | | | 152,459,444 | |
The geographical location of customers is based on the location at which the electricity was transferred, goods were delivered and services provided.
| (ii) | Non-current assets (excluding financial assets and deferred income tax assets) are located in the following countries: |
| | As at 31 December | | | | | 2016 | | | 2015 | | | As at 31 December | | | | | | | | | | 2019 | | | 2018 | | PRC | | | 249,155,921 | | | | 245,620,977 | | | 327,410,156 | | | 317,850,476 | | Singapore | | | 23,369,766 | | | | 22,874,396 | | | Overseas | | | | 24,830,127 | | | | 23,302,942 | | Total | | | 272,525,687 | | | | 268,495,373 | | | | 352,240,283 | | | | 341,153,418 | |
5 | Revenue and segment information (Continued) | The non-current asset information above is based on the locations of the assets.
The information on sales to major customers of the Company and its subsidiaries at amount equal toGroup which accounted for 10% 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 | % |
In 2019, the revenue from grid companies under common control of State Grid Corporation of China within the PRC power segment in total accounted for 79% of external revenue (2018: 76%, 2017: 76%). The sales to a subsidiary of State Grid Corporation of China which accounted for 10% or more of external revenue is as follows:
| | For the year ended 31 December | | | | 2019 | | | 2018 | | | 2017 | | | | Amout | | | Proportion | | | Amout | | | Proportion | | | Amout | | | Proportion | | State Grid Shandong Electric Power Company | | | 29,575,604 | | | | 17 | % | | | 31,156,948 | | | | 18 | % | | | 28,659,891 | | | | 19 | % |
5 | Revenue and segment information (continued) |
The contract assets primarily relate to the Group’s rights to consideration for service completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional according to the contract.
The contract liabilities primarily relate to the advance received from customers for heat sales and heating pipeline upfront fees. The contract liabilities of RMB224 million at the beginning of the year has been recognised as revenue of heating pipeline service in 2019. The contract liabilities of RMB1,732 million at the beginning of the year has been recognized as revenue of heat sales in 2019.
| (i) | The transaction price allocated to remaining performance obligations (unsatisfied or partially unsatisfied) are as follows: |
| | As at 31 December 2019 | | | As at 31 December 2018 | | With 1 year | | | 220,046 | | | | 224,230 | | Over 1 year | | | 2,223,208 | | | | 2,024,452 | | Total (Note 27) | | | 2,443,254 | | | | 2,248,682 | |
The transaction price allocated to the above remaining performance obligations expected to be recognized more than one year relate to the provision of heating pipeline services, of which the performance obligations are to be satisfied within 17 years. The amount disclosed above does not include variable consideration which is constrained.
| (ii) | performance obligations |
The Group has elected the practical expedient of not disclosing the remaining obligation excluding heating pipeline upfront fees. No information is provided about the performance obligations at 31 December 2019 that have an original expected duration of one year or less, as allowed by IFRS 15.
6 | Profit 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 | | | | 2019 | | | 2018 | | | 2017 | | Total interest expense on borrowing | | | 11,342,526 | | | | 10,982,230 | | | | 10,225,069 | | Less: amounts capitalized in property, plant and equipment | | | 579,808 | | | | 495,818 | | | | 476,065 | | Interest expenses charged in consolidated statement of comprehensive income | | | 10,762,718 | | | | 10,486,412 | | | | 9,749,004 | | Including: Interest expenses on lease liabilities | | | 171,573 | | | | - | | | | - | | Auditors’ remuneration-audit services | | | 42,019 | | | | 68,750 | | | | 64,160 | | Operating leases charge | | | - | | | | 377,162 | | | | 364,756 | | Minimum lease payments under operating lease, lease payments not included in the measurement of lease liabilities | | | 234,139 | | | | - | | | | - | | Fuel | | | 97,686,799 | | | | 105,736,173 | | | | 92,737,304 | | Depreciation of property, plant and equipment (Note i) | | | 21,130,076 | | | | 20,466,423 | | | | 20,180,830 | | Depreciation of right-of-use assets (Note i) | | | 734,827 | | | | - | | | | - | | Amortization of land use rights (Note i) | | | - | | | | 344,068 | | | | 341,125 | | Amortization of other non-current assets
| | | 101,902 | | | | 105,623 | | | | 113,878 | | Impairment loss of property, plant and equipment (Note 7) | | | 5,719,990 | | | | 989,778 | | | | 1,046,195 | | Impairment loss of land use rights | | | - | | | | - | | | | 108,590 | | Impairment loss of mining rights (Note 13) | | | - | | | | 135,085 | | | | - | | Impairment loss of goodwill (Note 15) | | | - | | | | 409,371 | | | | - | | Impairment loss of other non-current assets | | | 464,867 | | | | 8,432 | | | | 5,008 | | Recognition of loss allowance for receiviables | | | 74,557 | | | | 40,967 | | | | 27,682 | | Recognition/(reversal) of provision for inventory obsolescence (Note 17) | | | 22,453 | | | | 253,816 | | | | (263 | ) | Net (gain)/ loss on disposals of non-current assets | | | (69,449 | ) | | | (42,506 | ) | | | 616,456 | | Government grants | | | (818,101 | ) | | | (521,380 | ) | | | (421,912 | ) | Included in other investment income | | | | | | | | | | | | | -Gains on disposal of available-for-sale financial assets | | | - | | | | - | | | | (1,479,732 | ) | -Dividends on available-for-sale financial assets | | | - | | | | - | | | | (124,918 | ) | -Dividends on other equity instrument investments | | | (685 | ) | | | (1,168 | ) | | | - | | -Gains on disposal of subsidiaries (Note 20, 41(b)) | | | (256,009 | ) | | | - | | | | (52,330 | ) | -Loss on disposal of a joint venture | | | - | | | | 270,741 | | | | - | | Included in (gain)/loss on fair value changes of financial assets/liabilities | | | | | | | | | | | | | -Contingent consideration of the business combination | | | (17,175 | ) | | | (746,850 | ) | | | (859,547 | ) | -Loss on fair value changes of trading derivatives | | | (19,492 | ) | | | 20,007 | | | | 2,761 | |
6 | Profit before income tax expense (Continued)(continued) |
Other operating expenses consist of impairment losslosses of property, plant and equipment, land use rights, goodwill, mining rights and investment in an associate, environmental protection expenses,impairment losses of other non-current assets, loss on disposal of a joint venture, recognition of loss allowance for receivables, recognition/(reversal) of provision for inventory obsolescence, gain on disposals of non-current assets substituted power arrangement expenses, insurance, gain on a bargain purchase, government grants and other miscellaneous expenses.
Note i: Upon the adoption IFRS 16, depreciation of finance lease assets was reclassified from “property, plant and equipment” to “right-of-use assets”, and amortisation of land use rights was reclassified from “land use rights” to “right-of-use assets”.
7 | Property, plant and equipment |
| | Dam | | | Port facilities | | | Buildings | | | Electric utility plant in service | | | Transport-ation facilities | | | Others | | | CIP | | | Total | | | Dams | | | Port facilities | | | Buildings | | | Electric utility plant in service | | | Transport- ation facilities | | | Others | | | CIP | | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 1 January 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | As at 1 January 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | Cost | | | 836,194 | | | | 5,127,923 | | | | 6,711,769 | | | | 276,801,979 | | | | 893,417 | | | | 5,480,587 | | | | 20,000,109 | | | | 315,851,978 | | | 2,220,224 | | | 3,358,811 | | | 11,173,669 | | | 418,360,698 | | | 1,155,392 | | | 5,972,688 | | | 29,534,677 | | | 471,776,159 | | Accumulated depreciation | | | (48,046 | ) | | | (549,438 | ) | | | (2,099,073 | ) | | | (115,023,072 | ) | | | (304,926 | ) | | | (3,003,834 | ) | | | - | | | | (121,028,389 | ) | | (226,512 | ) | | (443,259 | ) | | (3,019,198 | ) | | (170,525,898 | ) | | (362,222 | ) | | (3,523,292 | ) | | - | | | (178,100,381 | ) | Accumulated impairment loss | | | (80,910 | ) | | | (568,637 | ) | | | (62,554 | ) | | | (5,279,829 | ) | | | - | | | | (73,295 | ) | | | (379,307 | ) | | | (6,444,532 | ) | | Accumulated impairment losses | | | | (356,023 | ) | | | - | | | | (52,387 | ) | | | (7,914,640 | ) | | | - | | | | (33,213 | ) | | | (991,422 | ) | | | (9,347,685 | ) | 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 | | | | 1,637,689 | | | | 2,915,552 | | | | 8,102,084 | | | | 239,920,160 | | | | 793,170 | | | | 2,416,183 | | | | 28,543,255 | | | | 284,328,093 | | Year ended 31 December 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended 31 December 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | 1,637,689 | | | 2,915,552 | | | 8,102,084 | | | 239,920,160 | | | 793,170 | | | 2,416,183 | | | 28,543,255 | | | 284,328,093 | | Reclassification | | | - | | | | - | | | | 94,127 | | | | (23,353 | ) | | | 70,432 | | | | (141,206 | ) | | | - | | | | - | | | - | | | - | | | 90,791 | | | (108,874 | ) | | - | | | 18,083 | | | - | | | - | | Business combination (Note 39) | | | 330,578 | | | | - | | | | 502,852 | | | | 19,822,767 | | | | 13 | | | | 285,819 | | | | 5,519,969 | | | | 26,461,998 | | | Business combination | | | - | | | - | | | 38,845 | | | 3,128,388 | | | 1,683 | | | 294,629 | | | 5,120 | | | 3,468,665 | | Additions | | | - | | | | - | | | | 17 | | | | 133,482 | | | | - | | | | 141,991 | | | | 21,574,660 | | | | 21,850,150 | | | - | | | 195 | | | 18,996 | | | 543,660 | | | - | | | 71,414 | | | 15,981,274 | | | 16,615,539 | | Transfer from CIP | | | 573,234 | | | | 47,480 | | | | 832,961 | | | | 21,654,923 | | | | - | | | | 125,889 | | | | (23,234,487 | ) | | | - | | | 5,867 | | | 50,824 | | | 514,167 | | | 17,726,156 | | | 460 | | | 108,477 | | | (18,405,951 | ) | | - | | 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 | ) | | Reclassification to assets held for sale | | | - | | | - | | | - | | | (547,720 | ) | | - | | | (3,668 | ) | | (2,645 | ) | | (554,033 | ) | Disposals/write-off | | | - | | | - | | | (41,618 | ) | | (449,894 | ) | | - | | | (16,568 | ) | | - | | | (508,080 | ) | Depreciation charge | | | (24,498 | ) | | | (111,245 | ) | | | (234,073 | ) | | | (13,618,136 | ) | | | (50,380 | ) | | | (403,120 | ) | | | - | | | | (14,441,452 | ) | | (38,832 | ) | | (117,025 | ) | | (405,045 | ) | | (19,446,539 | ) | | (62,771 | ) | | (423,051 | ) | | - | | | (20,493,263 | ) | Impairment charge | | | (152,714 | ) | | | - | | | | (302 | ) | | | (526,191 | ) | | | - | | | | (557 | ) | | | (367,877 | ) | | | (1,047,641 | ) | | - | | | - | | | (20,002 | ) | | (947,520 | ) | | - | | | (112 | ) | | (22,144 | ) | | (989,778 | ) | Currency translation differences | | | - | | | | - | | | | - | | | | (133,733 | ) | | | - | | | | 22,847 | | | | (2,880 | ) | | | (113,766 | ) | | | - | | | | - | | | | - | | | | 193,872 | | | | - | | | | 191 | | | | 66 | | | | 194,129 | | 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 | | | 1,604,724 | | | 2,849,546 | | | 8,298,218 | | | 240,011,689 | | | 732,542 | | | 2,465,578 | | | 26,098,975 | | | 282,061,272 | | As at 31 December 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31 December 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | Cost | | | 1,856,144 | | | | 3,860,009 | | | | 8,306,471 | | | | 327,827,738 | | | | 980,290 | | | | 5,809,400 | | | | 23,851,697 | | | | 372,491,749 | | | 2,308,072 | | | 3,409,830 | | | 12,566,461 | | | 472,814,967 | | | 1,219,218 | | | 7,226,391 | | | 27,112,542 | | | 526,657,481 | | Accumulated depreciation | | | (153,325 | ) | | | (436,215 | ) | | | (2,508,772 | ) | | | (138,852,591 | ) | | | (371,226 | ) | | | (3,366,838 | ) | | | - | | | | (145,688,967 | ) | | (301,125 | ) | | (560,284 | ) | | (4,147,947 | ) | | (221,703,642 | ) | | (486,676 | ) | | (4,722,608 | ) | | - | | | (231,922,282 | ) | Accumulated impairment loss | �� | | (268,981 | ) | | | - | | | | (68,931 | ) | | | (5,968,962 | ) | | | - | | | | (81,328 | ) | | | (741,510 | ) | | | (7,129,712 | ) | | Accumulated impairment losses | | | | (402,223 | ) | | | - | | | | (120,296 | ) | | | (11,099,636 | ) | | | - | | | | (38,205 | ) | | | (1,013,567 | ) | | | (12,673,927 | ) | 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 | | | | 1,604,724 | | | | 2,849,546 | | | | 8,298,218 | | | | 240,011,689 | | | | 732,542 | | | | 2,465,578 | | | | 26,098,975 | | | | 282,061,272 | | Year ended 31 December 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended 31 December 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | 1,604,724 | | | 2,849,546 | | | 8,298,218 | | | 240,011,689 | | | 732,542 | | | 2,465,578 | | | 26,098,975 | | | 282,061,272 | | Upon adoption of IFRS 16 | | | | - | | | | - | | | | - | | | | (1,387,259 | ) | | | - | | | | (229,292 | ) | | | - | | | | (1,616,551 | ) | Beginning of the year (restated) | | | | 1,604,724 | | | | 2,849,546 | | | | 8,298,218 | | | | 238,624,430 | | | | 732,542 | | | | 2,236,286 | | | | 26,098,975 | | | | 280,444,721 | | Reclassification | | | - | | | | 1,771 | | | | (492,558 | ) | | | 495,841 | | | | 759 | | | | (5,813 | ) | | | - | | | | - | | | - | | | (1,104,389 | ) | | 6,313 | | | (183 | ) | | - | | | 1,098,259 | | | - | | | - | | Business combination (Note 39) | | | - | | | | - | | | | 8,098 | | | | 303,854 | | | | - | | | | 2,977 | | | | 4,576 | | | | 319,505 | | | Acquisition (note 41) | | | - | | | - | | | - | | | - | | | - | | | - | | | 2,038,550 | | | 2,038,550 | | Additions | | | - | | | | 1,770 | | | | 127 | | | | 418,812 | | | | - | | | | 122,519 | | | | 18,839,102 | | | | 19,382,330 | | | - | | | - | | | 7,249 | | | 187,370 | | | 242 | | | 164,909 | | | 29,978,861 | | | 30,338,631 | | Transfer from CIP | | | 20,170 | | | | 246,712 | | | | 1,319,019 | | | | 12,576,736 | | | | 20,033 | | | | 296,648 | | | | (14,479,318 | ) | | | - | | | 39 | | | 1,794,267 | | | 771,582 | | | 17,261,238 | | | 190,777 | | | 158,621 | | | (20,176,524 | ) | | - | | Disposals/write-off | | | - | | | | - | | | | (68,945 | ) | | | (495,251 | ) | | | (26,477 | ) | | | (27,055 | ) | | | (193,357 | ) | | | (811,085 | ) | | (2,292 | ) | | - | | | (470,877 | ) | | (157,316 | ) | | (4 | ) | | (4,664 | ) | | - | | | (635,153 | ) | Depreciation charge | | | (32,987 | ) | | | (113,810 | ) | | | (255,882 | ) | | | (14,004,881 | ) | | | (48,720 | ) | | | (387,884 | ) | | | - | | | | (14,844,164 | ) | | (42,965 | ) | | (88,629 | ) | | (430,155 | ) | | (20,057,767 | ) | | (69,473 | ) | | (449,818 | ) | | - | | | (21,138,807 | ) | Impairment charge | | | (41,423 | ) | | | - | | | | (2,303 | ) | | | (1,005,367 | ) | | | - | | | | (6,399 | ) | | | (8,243 | ) | | | (1,063,735 | ) | | - | | | (439,190 | ) | | (116,355 | ) | | (3,864,903 | ) | | (993 | ) | | (43,432 | ) | | (1,255,117 | ) | | (5,719,990 | ) | Currency translation differences | | | - | | | | - | | | | - | | | | 404,948 | | | | - | | | | 782 | | | | 158 | | | | 405,888 | | | | - | | | | - | | | | - | | | | 298,193 | | | | - | | | | (3,764 | ) | | | 526 | | | | 294,955 | | 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 | | | | 1,559,506 | | | | 3,011,605 | | | | 8,065,975 | | | | 232,291,062 | | | | 853,091 | | | | 3,156,397 | | | | 36,685,271 | | | | 285,622,907 | | As at 31 December 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31 December 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | Cost | | | 1,876,314 | | | | 4,116,914 | | | | 9,056,858 | | | | 341,195,395 | | | | 875,630 | | | | 6,041,783 | | | | 28,022,858 | | | | 391,185,752 | | | 2,305,554 | | | 3,975,987 | | | 12,916,746 | | | 488,256,686 | | | 1,410,233 | | | 8,429,661 | | | 38,949,263 | | | 556,244,130 | | Accumulated depreciation | | | (186,312 | ) | | | (556,677 | ) | | | (2,749,300 | ) | | | (152,408,524 | ) | | | (320,971 | ) | | | (3,596,546 | ) | | | - | | | | (159,818,330 | ) | | (343,836 | ) | | (525,192 | ) | | (4,614,648 | ) | | (241,169,240 | ) | | (556,149 | ) | | (5,191,819 | ) | | - | | | (252,400,884 | ) | Accumulated impairment loss | | | (310,404 | ) | | | - | | | | (71,234 | ) | | | (7,085,994 | ) | | | - | | | | (88,228 | ) | | | (749,753 | ) | | | (8,305,613 | ) | | | (402,212 | ) | | | (439,190 | ) | | | (236,123 | ) | | | (14,796,384 | ) | | | (993 | ) | | | (81,445 | ) | | | (2,263,992 | ) | | | (18,220,339 | ) | 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 | | | | 1,559,506 | | | | 3,011,605 | | | | 8,065,975 | | | | 232,291,062 | | | | 853,091 | | | | 3,156,397 | | | | 36,685,271 | | | | 285,622,907 | |
* 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.F-79
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.
7 | Property, plant and equipment (Continued)(continued) |
Interest capitalization
Interest expense of approximately RMB450RMB580 million (2015 and 2014: RMB770 million and RMB557(2018: RMB496 million) arising on borrowings for the construction of property, plant and equipment was capitalizedcapitalised during the year and was included in ‘Additions’ in property, plant and equipment. The weighted average capitalizationcapitalisation rate was approximately 4.52% (2015 and 2014: 5.31% and 5.98%4.44% (2018: 4.57%) per annum.
Impairment
In 2016,When any indicators of impairment losses for certainare identified, property, plant and equipment are reviewed for impairment based on each CGU. The CGU is an individual plant or entity. The carrying values of these individual plants or entities were compared to the recoverable amounts of the CGUs, which were based predominantly on value-in-use. In 2019, impairment losses for property, plant and land use rightsequipment of certain power projects in PRC segment amounting to approximately RMB1,064 million and RMB52RMB5,720 million have been recognized, respectively.recognised. The recoverable amount of these aforesaid CGUs in aggregate is RMB8,879 million as at 31 December 2019. Factors leading to the impairment include lower than expected operating results of subsidiaries in 2019 due to oversupply and fierce competition within the electricity market and future decommission plan of thermal power generation units. Value-in-use calculations use pre-tax cash flow projections based on the 2020 financial budgets approved by management and are extrapolated using the same cash flow projections of the remaining years with changes being made to reflect the estimated changes in future market or economic conditions. Other key assumptions applied in the impairment testing include the future sales volumes and fuel prices. Management determined these key assumptions based on past performance and their expectations on market development. Further, the Group adopts a pre-tax and non-inflation rate of ranging from 7.00% to 12.77% that reflects specific risks related to the CGUs as discount rate. The assumptions above are used in analysing the recoverable amounts of the CGUs within operating segments. These estimates and judgments may be significantly affected by unexpected changes in the future market or economic conditions.
In 2018, impairment losses for property, plant and equipment of certain power projects primarily includedamounting to approximately RMB990 million have been recognised. Factors leading to the impairment include lower utilization hoursthan expected operating results of subsidiaries in 2018 due to oversupply and tariff of two coal-fired power plants as a result of over supply offierce competition within the electricity in two provinces, as well as low utilization hours of a hydropower plant as a result of low level of water inflow. Discountmarket. Pre-tax discount rates, of 8.06%ranging from 7.74% to 12.84%, 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.
plants. 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,addition, as a result of the low demand of coal-fired power in local market and site selection issues, management estimated the possibility of further development of a coal-fired power project and a wind power project was remote, thereforeremote; and thus, the projectprojects under construction with a carrying value of RMB368RMB14 million wasand RMB8 million were 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 plant2018, respectively.
Property, plant and equipment held under finance leases
As at 31 December 2016, certain property, plant and equipment with original cost of RMB2,075 million (2015: RMB1,912 million) were held under finance leases, which mainly included power generation assets, ships and pipeline assets.
Security
As at 31 December 2016,2019, certain property, plant and equipment were secured to a bank as collateral against a long-term loan (Note 23)25).
7 | Property, plant and equipment (continued) |
Buildings without ownership certificate
At 31 December 2016,2019, the Company and its subsidiaries wereGroup was 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 RMB7,871RMB7,779 million (2015: RMB8,314(2018: RMB8,386 million). The managementmanagements are of the opinion that the Company and its subsidiaries areGroup is entitled to lawfully and validly occupy and use of the above mentionedabovementioned buildings. There has been no litigations, claims or assessments against the Group for compensation with respect to the use of these buildings as at the date of approval of these financial statements.
8 Investments in associates and joint ventures
| | 2019 | | | 2018 | | Beginning of the year | | | 19,553,964 | | | | 19,517,623 | | Capital injections in associates and joint ventures | | | 313,197 | | | | 463,258 | | Transfer to subsidiaries | | | - | | | | (1,314,040 | ) | Share of net profit less loss | | | 1,185,622 | | | | 1,823,415 | | Share of other comprehensive income/(loss) | | | 368,696 | | | | (531,186 | ) | Currency translation differences | | | - | | | | 45,762 | | Share of other capital reserve of equity-method investees | | | - | | | | (80,543 | ) | Dividends | | | (638,220 | ) | | | (370,325 | ) | End of the year | | | 20,783,259 | | | | 19,553,964 | |
8 | Investments in associates and joint ventures |
| | 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 | |
8 Investments in associates and joint ventures (continued)
As at 31 December 2016,2019, 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
| Registered | Business nature and
| | Percentage of equity interest held | | Name | Country of incorporation | Registered capital | Business nature and scope of operation | | Direct | | | Indirect1 | | | | | | | | | | | | Associates: | | | | | | | | | | Huaneng Sichuan Hydropower Co., Ltd. (“Sichuan Hydropower”) | PRC | RMB1,469,800,000 | Development, investment, construction, operation and management of hydropower | | | 49 | % | | | - | | SECL* | PRC | RMB2,642,994,398RMB3,964,491,597 | Energy and investment in related industries | | | 25.02 | % | | | - | | Hebei Hanfeng Power Generation Limited Liability Company (“Hanfeng Power”) | PRC | RMB1,975,000,000 | Power generation | | | 40 | % | | | - | | Huaneng Finance | PRC | RMB5,000,000,000 | Provision 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”) | PRC | RMB1,469,800,000 | Development, investment, construction, operation and management of hydropower | | | 49 | % | | | - | | China Huaneng Group Fuel Co., Ltd.(“ (“Huaneng Group Fuel Company”) ** | PRC | RMB3,000,000,000 | Wholesale of coal, import and export of coal | | | 50 | % | | | - | | Hainan Nuclear Power Limited Liability Company (“Hainan Nuclear”) | PRC | RMB2,059,334,000RMB5,063,640,000 | Construction 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”) | PRC | RMB1,200,000,000 | International and domestic sea transportation | | | 50 | % | | | - | | Jiangsu Nantong Power Generation Co., Ltd. (“Jiangsu Nantong Power”) | PRC | RMB1,596,000,000 | Operation and Management of power generation plants and transportation related projects | | | - | | | | 35 | % |
| 1 | The indirect percentage of equity interest held represents the effective ownership interest of the Company and its subsidiaries. |
| * | As at 31 December 2016,2019, the fair value of the Company’s shares in SECL was RMB6,813RMB6,159 million (2015: RMB9,729(2018: RMB5,207 million). |
8 | Investments in associates and joint ventures (Continued) |
| ** | In accordance with the articles of the association of the investee, the Company could only exercise significant influence on the investee and therefore accounts for the investment under the equity method. |
In 2015, due to continuous loss as a result of deterioration of coal industry, impairment loss of RMB178 million (2014: RMB120 million) 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.
8 | Investments in associates and joint ventures (Continued) |
8 Investments in associates and joint ventures (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 | | | Sichuan Hydropower | | | SECL | | | Huaneng Finance | | | Hanfeng Power | | | Huaneng Group Fuel Company | | | Hainan Nuclear | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | 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 | | | 873,821 | | | 1,064,837 | | | 20,887,020 | | | 24,066,320 | | | 23,099,357 | | | 31,484,547 | | | 849,386 | | | 934,257 | | | 6,010,002 | | | 5,157,038 | | | 3,085,059 | | | 2,520,515 | | 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 | | | 14,305,871 | | | 14,472,981 | | | 76,623,640 | | | 62,798,620 | | | 20,746,004 | | | 20,106,246 | | | 1,661,565 | | | 1,810,145 | | | 3,781,166 | | | 3,928,269 | | | 20,749,672 | | | 22,091,197 | | 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 | ) | | (2,772,221 | ) | | (3,903,679 | ) | | (25,533,260 | ) | | (24,141,930 | ) | | (36,733,579 | ) | | (44,560,156 | ) | | (442,628 | ) | | (642,355 | ) | | (3,827,415 | ) | | (2,900,223 | ) | | (3,338,370 | ) | | (2,490,271 | ) | 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 | ) | | (7,788,402 | ) | | (7,060,740 | ) | | (38,446,550 | ) | | (35,193,400 | ) | | (30,867 | ) | | (73,483 | ) | | (166,718 | ) | | (35,503 | ) | | (2,121,112 | ) | | (2,464,580 | ) | | (15,930,100 | ) | | (17,908,511 | ) | 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 | | | 4,619,069 | | | 4,573,399 | | | 33,530,850 | | | 27,529,610 | | | 7,080,915 | | | 6,957,154 | | | 1,901,605 | | | 2,066,544 | | | 3,842,641 | | | 3,720,504 | | | 4,566,261 | | | 4,212,930 | | -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 | | | 3,464,302 | | | 3,409,111 | | | 24,103,107 | | | 21,118,225 | | | 7,080,915 | | | 6,957,154 | | | 1,901,605 | | | 2,066,544 | | | 3,590,096 | | | 3,477,211 | | | 4,566,261 | | | 4,212,930 | | -Non-controlling interests | | | 1,159,293 | | | | 1,124,389 | | | | 3,035,990 | | | | 2,812,210 | | | | - | | | | - | | | | - | | | | - | | | | 161,829 | | | | 144,155 | | | | - | | | | - | | | 1,154,767 | | | 1,164,288 | | | 9,427,743 | | | 6,411,385 | | | - | | | - | | | - | | | - | | | 252,545 | | | 243,293 | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | 2,252,535 | | | 2,242,269 | | | 20,851,430 | | | 18,518,430 | | | 1,574,856 | | | 1,610,768 | | | 2,081,865 | | | 2,232,700 | | | 27,832,662 | | | 20,568,107 | | | 3,453,022 | | | 2,626,882 | | 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 | | | Gross Profit | | | 575,401 | | | 502,266 | | | 6,472,550 | | | 4,933,510 | | | 1,064,181 | | | 908,198 | | | (46,899 | ) | | 73,828 | | | | 173,371 | | | 84,037 | | | 142,906 | | | (5,652,406 | ) | Net Profit | | | 509,034 | | | 426,154 | | | 1,749,600 | | | 589,821 | | | 1,004,048 | | | 834,318 | | | (54,444 | ) | | (6,665 | )
| | | 150,460 | | | 80,882 | | | 307,135 | | | (392,000 | ) | Profit/(loss) from operations attributable to shareholders | | | 327,042 | | | 225,705 | | | 1,598,540 | | | 589,821 | | | 1,004,048 | | | 834,318 | | | (54,444 | ) | | (6,665 | )
| | | 144,500 | | | 70,766 | | | 307,135 | | | (392,000 | ) | Other comprehensive income/(loss) attributable to shareholders | | | - | | | - | | | 1,589,390 | | | (1,117,524 | ) | | (150,286 | ) | | 78,951 | | | - | | | - | | | 2,164 | | | 6,101 | | | - | | | - | | Total comprehensive income/(loss) attributable to shareholders | | | 327,042 | | | 225,705 | | | 3,187,930 | | | (527,703 | ) | | 853,762 | | | 913,269 | | | (54,444 | ) | | (6,665 | ) | | 146,664 | | | 76,867 | | | 307,135 | | | (392,000 | ) | Dividend received from the associates | | | 145,392 | | | | 189,499 | | | | 198,348 | | | | 132,232 | | | | 122,000 | | | | 138,000 | | | | 174,366 | | | | 115,954 | | | | 10,000 | | | | - | | | | - | | | | - | | | 116,505 | | | 106,598 | | | 49,587 | | | 79,339 | | | 146,000 | | | 128,000 | | | 43,132 | | | - | | | 20,000 | | | - | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | 3,464,302 | | | 3,409,111 | | | 24,103,107 | | | 21,118,225 | | | 7,080,915 | | | 6,957,154 | | | 1,901,605 | | | 2,066,544 | | | 3,590,096 | | | 3,477,211 | | | 4,566,261 | | | 4,212,930 | | 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 | | | The Group’s effective interest | | | | 49 | % | | | 49 | % | | | 25.02 | % | | | 25.02 | % | | | 20 | % | | | 20 | % | | | 40 | % | | | 40 | % | | | 50 | % | | | 50 | % | | | 30 | % | | | 30 | % | The Group’s share of net assets attributable to shareholders of the associate | | | 1,697,508 | | | 1,670,464 | | | 6,030,597 | | | 5,282,723 | | | 1,416,183 | | | 1,391,431 | | | 760,642 | | | 826,618 | | | 1,795,048 | | | 1,738,606 | | | 1,369,878 | | | 1,263,879 | | 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 | | | | 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 | | | | 1,905,094 | | | | 1,878,050 | | | | 7,192,407 | | | | 6,444,533 | | | | 1,416,183 | | | | 1,391,431 | | | | 1,053,724 | | | | 1,119,700 | | | | 1,811,569 | | | | 1,755,127 | | | | 1,383,954 | | | | 1,277,955 | |
8 | Investments in associates and joint ventures (Continued) |
8 Investments in associates and joint ventures (continued)
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 | | | Jiangsu Nantong Power | | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Gross amounts of joint ventures’ | | | | | | | | | | | | | Current assets | | | 280,687 | | | | 345,658 | | | | 396,850 | | | | 763,572 | | Non-current assets | | | 4,083,160 | | | | 4,335,923 | | | | 5,294,584 | | | | 5,399,783 | | Current liabilities | | | (2,367,244 | ) | | | (2,151,722 | ) | | | (2,660,119 | ) | | | (2,826,652 | ) | Non-current liabilities | | | (54,623 | ) | | | (709,165 | ) | | | (901,583 | ) | | | (1,128,274 | ) | Equity | | | 1,941,980 | | | | 1,820,694 | | | | 2,129,732 | | | | 2,208,429 | | Revenue | | | 1,613,813 | | | | 2,423,130 | | | | 2,959,197 | | | | 3,287,872 | | Gross Profit | | | 135,846 | | | | 129,789 | | | | 490,578 | | | | 444,914 | | Net Profit
| | | 121,284 | | | | 425,900 | | | | 211,589 | | | | 174,652 | | Total comprehensive income/(loss)
| | | 121,284 | | | | 425,900 | | | | 211,589 | | | | 174,652 | | Dividend received in cash from the joint ventures | | | - | | | | - | | | | 145,143 | | | | 24,387 | |
Reconciled to the interest in the joint ventures: | | Gross amounts of net assets | | | 1,941,980 | | | | 1,820,694 | | | | 2,129,732 | | | | 2,208,429 | | The Group’s and its subsidiaries’ effective interest rates
| | | 50 | % | | | 50 | % | | | 50 | % | | | 50 | % | The Group’s share of net assets | | | 970,990 | | | | 910,347 | | | | 1,064,866 | | | | 1,104,215 | | Impact of adjustments | | | 18,324 | | | | 18,324 | | | | - | | | | - | | Carrying amount in the consolidated financial statements | | | 989,314 | | | | 928,671 | | | | 1,064,866 | | | | 1,104,215 | |
Aggregate information of associates and a joint ventureventures that are not individually material:
| | 2016 | | | 2015 | | | | | | | | | | | 2019 | | | 2018 | | Aggregate carrying amount of individually immaterial associates and joint ventures in the consolidated financial statements | | | 3,479,043 | | | | 3,202,906 | | | 3,966,148 | | | 3,654,282 | | Aggregate amounts of the Company and its subsidiaries’ share of those associates and joint ventures Profit from continuing operations | | | 263,392 | | | | 113,891 | | | Aggregate amounts of the Group's share of those associates and joint ventures Profit from continuing operations | | | 123,869 | | | 52,935 | | Total comprehensive income | | | 263,392 | | | | 113,891 | | | 123,954 | | | 53,197 | |
As at 31 December 2016,2019, the Company’sGroup’s share of losses of an associateassociates and a joint venture exceeded its interestinterests in the associateassociates and thea joint venture and the unrecognizedunrecognised further losses amounted to RMB163RMB538 million (2015: RMB76(2018: RMB505 million).
As at 31 December 2019, there were no proportionate interests in the associates’ and a joint ventures’ capital commitments (31 December 2018: Nil). There were no material contingent liabilities relating to the Group’s interests in the associates and joint ventures, and the associates and joint ventures themselves.
9 | Investments in subsidiaries |
As at 31 December 2016,2019, 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 of | Type of | Registered | Business nature and scope | | Percentage equity interest of held | | Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | | | | | | | | | | | | | Huaneng International Power Fuel Limited Liability Company | | PRC | held directly | RMB 200,000,000 | Wholesale of coal | | | 100 | % | | | 100 | % | Huaneng Shanghai Shidongkou Power Generation Limited Liability Company (“Shidongkou Power Company”)(i) | | PRC | held directly | RMB 1,179,000,000 | Power generation | | | 50 | % | | | 100 | % | Huaneng Nantong Power Generation Limited Liability Company | | PRC | held directly | RMB 798,000,000 | Power generation | | | 70 | % | | | 70 | % | Huaneng Yingkou Power Generation Limited Liability Company | | PRC | held 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. | | PRC | held 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 | | PRC | held 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 | | PRC | held 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. | | PRC | held 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. | | PRC | held 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. | | PRC | held 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. | | PRC | held 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. | | PRC | held directly | RMB 90,380,000 | Construction and management of wind power generation projects | | | 90 | % | | | 90 | % | Huaneng Guangdong Haimen Port Limited Liability Company | | PRC | held directly | RMB 321,400,000 | Loading warehousing and conveying services, providing facilities services | | | 100 | % | | | 100 | % | Huaneng Taicang Port Limited Liability Company | | PRC | held directly | RMB 555,800,000 | Port development and construction, coal mixture, machinery leasing and repair | | | 85 | % | | | 85 | % | Huaneng Taicang Power Co., Ltd. | | PRC | held directly | RMB 804,146,700 | Power generation | | | 75 | % | | | 75 | % |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng International Power Fuel Limited Liability Company | PRC | held directly | RMB 200,000,000 | Wholesale of coal | 100% | 100% | | | | | | | | Huaneng Shanghai Shidongkou Power Generation Limited Liability Company (“Shidongkou Power”) (i) | PRC | held directly | RMB 1,179,000,000 | Power generation | 50% | 100% | | | | | | | | Huaneng Nantong Power Generation Limited Liability Company | PRC | held directly | RMB 798,000,000 | Power generation | 70% | 70% | | | | | | | | Huaneng Yingkou Co-generation Limited Liability Company | PRC | held 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. | PRC | held directly | RMB 328,000,000 | Construction, operation and management of hydropower plants and related projects | 100% | 100% | | | | | | | | Huaneng Zuoquan Coal-fired Power Generation Limited Liability Company | PRC | held directly | RMB 960,000,000 | Construction, operation and management of electricity projects; development and utilization of clean energy resources | 80% | 80% | | | | | | | | Huaneng Kangbao Wind Power Utilization Limited Liability Company | PRC | held directly | RMB 407,200,000 | Construction, operation and management of wind power plants and related projects; solar power generation | 100% | 100% | | | | | | | | Huaneng Jiuquan Wind Power Generation Co., Ltd. (“Jiuquan Wind Power”) | PRC | held directly | RMB 2,610,000,000 | Construction, operation and management of wind power generation and related projects | 100% | 100% | | | | | | | | Huaneng Rudong Wind Power Generation Co., Ltd. | PRC | held directly | RMB 90,380,000 | Operation, management of wind power generation projects | 90% | 90% | | | | | | | | Huaneng Guangdong Haimen Port Limited Liability Company | PRC | held directly | RMB 331,400,000 | Loading, warehousing and conveying services, providing facility services and water transportation services | 100% | 100% | | | | | | | | Huaneng Taicang Port Limited Liability Company | PRC | held directly | RMB 600,000,000 | Port provision, cargo loading and storage | 85% | 85% | | | | | | | | Huaneng Taicang Power Generation Co., Ltd. | PRC | held directly | RMB 867,996,200 | Power generation | 75% | 75% | | | | | | | | Huaneng Huaiyin II Power Generation Limited Company | PRC | held directly | RMB 930,870,000 | Power generation | 63.64% | 63.64% | | | | | | | | Huaneng Xindian Power Generation Co., Ltd. | PRC | held directly | RMB 465,600,000 | Power generation | 95% | 95% | | | | | | | | Huaneng Shanghai Combined Cycle Power Limited Liability Company | PRC | held directly | RMB 699,700,000 | Power generation | 70% | 70% |
9 | Investments in subsidiaries (Continued)(continued) |
| (i) | Subsidiaries acquired through establishment or investment (Continued)(continued) |
| | Country of | Type of | Registered | Business nature and scope | | Percentage of equity interest held | | Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | | | | | | | | | | | | | Huaneng Huaiyin II Power Limited Company | | PRC | held directly | RMB 930,870,000 | Power generation | | | 63.64 | % | | | 63.64 | % | Huaneng Xindian Power Co., Ltd. | | PRC | held directly | RMB 465,600,000 | Power generation | | | 95 | % | | | 95 | % | Huaneng Shanghai Combined Cycle Power Limited Liability Company | | PRC | held directly | RMB 699,700,000 | Power generation | | | 70 | % | | | 70 | % | Huaneng Yumen Wind Power Generation Co., Ltd. | | PRC | held 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 | | PRC | held 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. | | PRC | held 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. | | PRC | held indirectly | RMB 10,000,000 | Constructing and operating of mine and related construction projects | | | 100 | % | | | 100 | % | Huaneng Nanjing Combined Cycle Cogeneration Co., Ltd. | | PRC | held directly | RMB 582,000,000 | Power generation | | | 60 | % | | | 60 | % | Huaneng Shantou Haimen Power Limited Liability Company | | PRC | held 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 | | PRC | held directly | RMB 726,600,000 | Construction, operation and management of natural gas power plants and related projects | | | 90 | % | | | 90 | % | Chongqing Huaqing Energy Co., Ltd. | | PRC | held 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. | | PRC | held directly | RMB 157,290,000 | Wind Power Project investment and management | | | 100 | % | | | 100 | % | Huaneng Panxian Wind Power Generation Co., Ltd. | | PRC | held directly | RMB 86,500,000 | Construction and management of wind power plants and related projects | | | 100 | % | | | 100 | % | Huaneng Jiangxi Clean Energy Limited Liability Company | | PRC | held 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. | | PRC | held 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. | | PRC | held directly | RMB 6,000,000 | Construction and operation of wind power plants and related projects | | | 100 | % | | | 100 | % |
c | Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng Yumen Wind Power Generation Co., Ltd. | PRC | held directly | RMB 719,170,000 | Construction, operation and management of wind power generation and related projects | 100% | 100% | | | | | | | | Huaneng Qingdao Co-generation Limited Company | PRC | held directly | RMB 214,879,000 | Construction, operation and management of co-generation power plants and related projects | 100% | 100% | | | | | | | | Huaneng Tongxiang Combined Cycle Co-generation Co., Ltd. | PRC | held directly | RMB 300,000,000 | Production and sales of electricity and heat; investment in combined cycle co-generation industries | 95% | 95% | | | | | | | | Huaneng Shantou Haimen Power Generation Limited Liability Company | PRC | held 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 (“Liangjiang Power”) | PRC | held directly | RMB 726,600,000 | Construction, operation and management of natural gas power plants and related projects | 90% | 90% | | | | | | | | Chongqing Huaqing Energy Co., Ltd. (“Huaqing Energy”) (ii) | PRC | held indirectly | RMB 44,420,000 | Providing thermal energy and cold energy services; supplying electricity | 54% | 60% | | | | | | | | Huaneng Yunnan Fuyuan Wind Power Generation Co., Ltd. | PRC | held directly | RMB 157,290,000 | Wind power project investment, management and sales | 100% | 100% | | | | | | | | Huaneng Guizhou Panzhou State City Wind Power Co., Ltd. | PRC | held directly | RMB 188,180,000 | Construction and management of wind power plants and related projects | 100% | 100% | | | | | | | | Huaneng Jiangxi Clean Energy Limited Liability Company | PRC | held directly | RMB 436,398,000 | Power generation and supply, development, management and construction of clean | 100% | 100% | | | | | | | | Huaneng Nanjing Combined Cycle Co-generation Co., Ltd. (“Nanjing Combined Cycle Co-generation”) (iii) | PRC | held directly | RMB 938,350,000 | Construction, operation and management of power plants and energy projects | 57.39% | 93.90% | | | | | | | | Huaneng Hunan Subaoding Wind Power Generation Co., Ltd. | PRC | held directly | RMB 266,000,000 | Construction, operation and management of wind power plants and related projects | 100% | 100% | | | | | | | | Huaneng Suixian Jieshan Wind Power Generation Co., Ltd. | PRC | held directly | RMB 182,500,000 | Construction, operation and management of wind power plants and related projects | 100% | 100% | | | | | | | | Huaneng Taiyuan Dongshan Combined Cycle Co-generation Co., Ltd. | PRC | held directly | RMB 600,000,000 | Construction and operation of thermal heating network, development and utilization of clean energy resources | 100% | 100% | | | | | | | | Huaneng Xuzhou Tongshan Wind Power Generation Co., Ltd. (“Tongshan Wind Power”) | PRC | held directly | RMB 287,951,400 | Wind power generation, electricity engineering design services, maintenance of power supply and control facilities, solar energy power generatio | 70% | 70% |
9 | Investments in subsidiaries (Continued)(continued) |
| (i) | Subsidiaries acquired through establishment or investment (Continued)(continued) |
| | Country of | Type of | Registered | Business nature and scope | | Percentage of equity interest held | | Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | | | | | | | | | | | Huaneng Suixian Jieshan Wind Power Generation Co., Ltd. | | PRC | held 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. | | PRC | held directly | RMB 10,000,000 | Construction and operation of power plants; thermal heating services | | | 100 | % | | | 100 | % | | Jiangsu Huayi Energy Co., Ltd. | | PRC | held directly | RMB 5,000,000 | Development of new energy; distribution of coal and coal products | | | 100 | % | | | 100 | % | | HuanengXuzhou Tongshan Wind Power Co., Ltd. | | PRC | held directly | RMB 169,000,000 | Wind power generation | | | 70 | % | | | 70 | % | | Huaneng Nanjing Co-generation Co., Ltd | | PRC | held directly | RMB 300,000,000 | Construction and operation of power plants; thermal heating services | | | 70 | % | | | 70 | % | | Huaneng Nanjing Co-generation Co., Ltd. | | PRC | held directly | RMB 300,000,000 | Construction and operation of power plants, thermal heating services | 70% | 70% | | | | | | | | | Huaneng Hunan Guidong Wind Power Generation Co., Ltd. | | PRC | held directly | RMB 2,000,000 | Construction and operation of wind power plants and related projects | | | 100 | % | | | 100 | % | PRC | held directly | RMB 140,000,000 | Investment, construction, operation and management of electricity projects; development and utilization of clean energy resources | 100% | 100% | | | | | | | | | Huaneng Nanjing Luhe Wind Power Generation Co., Ltd. | | PRC | held directly | RMB 5,000,000 | Research and development of wind power technology, construction and operation of wind power plants | | | 100 | % | | | 100 | % | PRC | held directly | RMB 63,800,000 | Investment, construction, operation, management of electricity projects | 100% | 100% | Huaneng Luoyuan Power Limited Liability Company | | PRC | held directly | RMB 1,000,000,000 | Construction and operation of power plants and related projects | | | 100 | % | | | 100 | % | | | | | | | | | | Huaneng Luoyuan Power Generation Limited Liability Company | | PRC | held directly | RMB 1,000,000,000 | Construction, operation and management of power plants and related projects | 100% | 100% | | | | | | | | | Huaneng Lingang (Tianjin) Gas Co-generation Co., Ltd. | | PRC | held directly | RMB 180,000,000 | Power generation, installation and maintenance of power equipment | | | 100 | % | | | 100 | % | PRC | held directly | RMB 332,000,000 | Power generation and supply | 100% | 100% | | | | | | | | | Huaneng Lingang (Tianjin) Heat Co-generation Co., Ltd. | | PRC | held indirectly | RMB 5,000,000 | Thermal energy, cold energy Plumbing pipe installation | | | 66 | % | | | 66 | % | PRC | held indirectly | RMB 5,000,000 | Providing thermal energy and cold energy services, supplying steam and hot water (except portable water), plumbing pipe installation and repair, energy engineering construction | 66% | 66% | | | | | | | | | Huaneng Anhui Huaining Wind Power Generation Co., Ltd. | | PRC | held directly | RMB 80,000,000 | Construction and operation of wind power plants and related projects | | | 100 | % | | | 100 | % | PRC | held directly | RMB 122,000,000 | Investment, construction and operation of electricity projects, development and utilization of clean energy resources | 100% | 100% | | | | | | | | | Huaneng Mianchi Co-generation Limited Liability Company | | PRC | held directly | RMB 570,000,000 | Construction and operation of coal-fired plants and related projects | | | 60 | % | | | 60 | % | PRC | held directly | RMB 570,000,000 | Construction, operation and management of coal-fired plants and related projects | 60% | 60% | | | | | | | | | Huaneng Yingkou Xianrendao Co-generation Co., Ltd. | | PRC | held directly | RMB 277,690,000 | Construction and operation of cogeneration power plants and related projects | | | 100 | % | | | 100 | % | PRC | held directly | RMB 352,020,000 | Power generation and supply, development and utilization of clean energy resources | 100% | 100% | Huaneng Nanjing Xingang Comprehensive. Energy Co., Ltd. | | PRC | held directly | RMB 10,000,000 | Construction and operation of heat supply network and related projects | | | 65 | % | | | 65 | % | | Huaneng Changxing Photovoltaic Power Limited Liability Company | | PRC | held directly | RMB 16,000,000 | Construction and operation of distributed photovoltaic power generation and related projects | | | 100 | % | | | 100 | % | | | | | | | | | | Huaneng Nanjing Xingang Comprehensive Energy Co., Ltd. | | PRC | held directly | RMB 10,000,000 | Thermal generation and supply, power distribution and sales | 65% | 65% | | | | | | | | | Huaneng Changxing Photovoltaic Power Generation Limited Liability Company (“Changxing Photovoltaic Power”) | | PRC | held directly | RMB 26,000,000 | Construction and operation of distributed photovoltaic power generation plants and related projects | 100% | 100% | | | | | | | | | Huaneng Rudong Baxianjiao Offshore Wind Power Generation Co., Ltd. | | PRC | held directly | RMB 1,629,338,700 | Infrastructure construction of wind power plants | 70% | 70% | | | | | | | | | Huaneng Guilin Gas Distributed Energy Co., Ltd. | | PRC | held directly | RMB 267,450,000 | Construction, operation and management of power plants thermal management | 80% | 80% | | | | | | | | | Huaneng (Dalian) Co-generation Co., Ltd. | | PRC | held directly | RMB 575,291,769 | Construction, operation and management of co-generation power plants and related project | 100% | 100% |
9 | Investments in subsidiaries (Continued)(continued) |
| (i) | Subsidiaries acquired through establishment or investment (Continued)(continued) |
| | Country of | Type of | | Registered | | Business nature and scope | | Percentage of equity interest held | | Name of subsidiary | | incorporation | interest held | | capital | | of operations | | Interest | | | Voting | | | | | | | | | | | | | | | | Huaneng Rudong Baxianjiao Offshore Wind Power Generation Co., Ltd | | PRC | held directly | | RMB 610,000,000 | | Infrastructure construction of wind power plants | | | 70 | % | | | 70 | % | Huaneng Shanxi City of Science & Technology Comprehensive Energy Co., Ltd. | | PRC | held directly | | RMB 100,000,000 | | Power generation and supply | | | 100 | % | | | 100 | % | Huaneng Guilin Gas distributed energy Co., Ltd. | | PRC | held directly | | RMB 267,450,000 | | Construction and operation of power plants and related projects | | | 80 | % | | | 80 | % | Huaneng (Dalian) Co-generation Co., Ltd. | | PRC | held directly | | RMB 12,500,000 | | Construction and operation of cogeneration power plants and related projects | | | 100 | % | | | 100 | % | Huaneng Zhongxiang Wind Power Generation Co., Ltd. | | PRC | held directly | | RMB 10,000,000 | | Construction and operation of wind power plants and related projects | | | 100 | % | | | 100 | % | Huaneng Guanyun Co-generation Co., Ltd. | | PRC | held directly | | RMB 15,000,000 | | Construction and operation of cogeneration power plants and related projects | | | 100 | % | | | 100 | % | Huaneng International Power Hongkong Limited Company | | Hong Kong | held directly | | 100,000 Shares | | Construction and operation of power supply, coal project and related investment and financing businesses | | | 100 | % | | | 100 | % | TPG | | Singapore | held 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. | | Singapore | held indirectly | | S$ 255,500,001 | | Provision of utility services | | | 100 | % | | | 100 | % | Huaneng Shanxi Taihang Power Generation Limited Liability Company | | PRC | held directly | | RMB 1,086,440,000 | | Pre service related to power generation | | | 60 | % | | | 60 | % | Huaneng Mianchi Clean Energy Limited Liability Company | | PRC | held directly | | RMB 10,000,000 | | Power generation, new energy development and utilization | | | 100 | % | | | 100 | % | Huaneng Zhuolu Clean Energy Limited Liability Company | | PRC | held directly | | RMB 10,000,000 | | Construction, operation and management of power plants and related projects | | | 100 | % | | | 100 | % | Huaneng Tongwei Wind Power Limited Liability Company | | PRC | held directly | | RMB 248,000,000 | | Construction, operation and management of power plants and related projects | | | 100 | % | | | 100 | % | Huaneng Yizheng Power Generation Limited Liability Company | | PRC | held directly | | RMB 200,000,000 | | Wind power station design, construction, management and maintenance | | | 100 | % | | | 100 | % |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng Zhongxiang Wind Power Generation Co., Ltd. | PRC | held directly | RMB 240,000,000 | Construction, operation and management of wind power plants and related projects | 100% | 100% | | | | | | | | Huaneng Guanyun Co-generation Co., Ltd. | PRC | held directly | RMB 15,000,000 | Construction, operation and management of co-generation power plants, heating network and expansion engineering | 100% | 100% | | | | | | | | Huaneng International Power Hong Kong Limited Company | Hong Kong | held directly | 100,000 Shares | Development, construction management and operation of power supply, coal projects; related investment and financing businesses | 100% | 100% | | | | | | | | Tuas Power Generation Pte. Ltd. (“TPG”) | Singapore | held 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. (“TPU”) | Singapore | held indirectly | S$ 255,500,001 | Provision of energy, power supply, thermal supply, management of industrial water and waste | 100% | 100% | | | | | | | | TP-STM Water Resources Pte. Ltd. | Singapore | held indirectly | S$ 4,500,000 | Providing desalinated water Pte. Ltd.* | 60% | 60% | | | | | | | | TP-STM Water Services | Singapore | held indirectly | S$ 21,000 | Providing desalinated water | 60% | 60% | | | | | | | | Huaneng Shanxi Taihang Power Generation Limited Liability Company | PRC | held directly | RMB 1,086,440,000 | Pre-services related to coal-fired generation | 60% | 60% | | | | | | | | Huaneng Mianchi Clean Energy Limited Liability Company | PRC | held directly | RMB 10,000,000 | Wind Power generation, new energy development and utilization | 100% | 100% | | | | | | | | Huaneng Zhuolu Clean Energy Limited Liability Company | PRC | held directly | RMB 78,878,100 | Construction, operation and management of power plants and related projects | 100% | 100% | | | | | | | | Huaneng Tongwei Wind Power Generation Limited Liability Company | PRC | held directly | RMB 248,000,000 | Construction, operation and management of wind power plants and related projects | 100% | 100% | | | | | | | | Huaneng Yizheng Wind Power Generation Limited Liability Company | PRC | held directly | RMB200,000,000 | Wind power plants design, construction, management and maintenance | 100% | 100% | | | | | | | | Huaneng Yancheng Dafeng New Energy Power Generation Limited Liability Company | PRC | held directly | RMB 5,000,000 | Construction, operation and management of wind power, photovoltaic power plant | 100% | 100% | | | | | | | | Huaneng Shanyin Power Generation Limited Liability Company | PRC | held directly | RMB 1,573,000,000 | Construction, operation and management of power plants and related project | 51% | 51% |
9 | Investments in subsidiaries (Continued)(continued) |
| (i) | Subsidiaries acquired through establishment or investment (Continued)(continued) |
| | Country of | Type of | Registered | Business nature and scope | | Percentage of equity interest held | | Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | | | | | | | | | | | Huaneng Yancheng Dafeng New Energy Power Generation Limited Liability Company | | PRC | held directly | RMB 5,000,000 | Construction, operation and management of wind power, photovoltaic power plant | | | 100 | % | | | 100 | % | | Huaneng Shanyin Power Generation Limited Liability Company | | PRC | held directly | RMB 1,573,000,000 | Construction, operation and management of power plants and related projects | | | 51 | % | | | 51 | % | | Huaneng Wafangdian Wind Power Generation Co., Ltd. | | PRC | held directly | RMB 50,000,000 | Construction, operation and management of wind power generation and related projects | 100% | 100% | | | | | | | | | Huaneng Jiangsu Energy Sales Limited Liability Company | | PRC | held directly | RMB 200,000,000 | Electric energy, heat energy distribution network, and water supply services; heating pipe network construction and operation | | | 100 | % | | | 100 | % | PRC | held directly | RMB 200,000,000 | Purchase and sales of electricity and thermal energy, water supply services, construction and operation of electricity distribution network and heating pipe network | 100% | 100% | | | | | | | | | Huaneng Liaoning Energy Sales Limited Liability Company | | PRC | held directly | RMB 200,000,000 | Electric energy, thermal energy and circulating hot water sales | | | 100 | % | | | 100 | % | PRC | held directly | RMB 200,000,000 | Sales of electricity, thermal energy and circulating hot water | 100% | 100% | | | | | | | | | Huaneng Guangdong Energy Sales Limited Liability Company | | PRC | held directly | RMB 200,000,000 | Power supply, energy transmission and substation project contracting | | | 100 | % | | | 100 | % | PRC | held directly | RMB 200,000,000 | Power and thermal energy supply, energy conservation technology service, transmission and substation projects contracting | 100% | 100% | | | | | | | | | Huaneng Suizhou Power Generation Limited Liability Company | | PRC | held directly | RMB 50,000,000 | Construction, operation and management of power plants production and sales of electricity and heat | | | 100 | % | | | 100 | % | PRC | held directly | RMB 96,020,000 | Construction, operation and management of power plants, production and sales of electricity and heating | 100% | 100% | Huaneng Changle Photovoltaic Power Limited Liability Company | | PRC | held directly | RMB 10,000,000 | Construction, operation and management of photovoltaic power plants and related projects | | | 100 | % | | | 100 | % | | | | | | | | | | Huaneng Changle Photovoltaic Power Generation Limited Liability Company | | PRC | held 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 | | PRC | held directly | RMB 10,000,000 | Construction, operation and management of wind power plants and related projects | | | 100 | % | | | 100 | % | PRC | held 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 | | PRC | held 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 | | PRC | held directly | RMB 15,000,000 | Construction, operation and management of photovoltaic power plants and related projects | | | 100 | % | | | 100 | % | | | | | | | | | | Huaneng Dandong Photovoltaic Power Generation Limited Liability Company | | PRC | held directly | RMB 17,720,000 | Investment, construction operation and management of electricity projects, development and utilization of clean energy resources | 100% | 100% | | | | | | | | | Huaneng Dongguan Combined Cycle Co-generation Limited Liability Company | | PRC | held directly | RMB 10,000,000 | Construction, operation and management of power plants and related projects production of electricity, heat production and sales | | | 100 | % | | | 100 | % | PRC | held directly | RMB 50,000,000 | Investment of electricity projects, thermal power generation and supply, investment in heating pipe network, development and utilization of clean energy resources | 100% | 100% | Huaneng Yangxi Photovoltaic Power Limited Liability Company | | PRC | held directly | RMB 62,500,000 | Photovoltaic electric power production and sales | | | 80 | % | | | 80 | % | | | | | | | | | | Huaneng Chongqing Fengjie Wind Power Generation Limited Liability Company | | PRC | held directly | RMB 183,900,000 | Electricity production and supply; development and utilization of clean energy resources | 100% | 100% | | | | | | | | | Huaneng Jingxing Photovoltaic Power Generation Limited Liability Company | | PRC | held directly | RMB 100,000 | Investment, construction and management of photovoltaic power plants | 100% | 100% | | | | | | | | | Huaneng Shanxi Energy Sales Limited Liability Company | | PRC | held directly | RMB 210,000,000 | Electricity supply and sales, investment, construction, operation and repair of regional transmission and distribution networ | 100% | 100% |
9 | Investments in subsidiaries (Continued)(continued) |
| (i) | Subsidiaries acquired through establishment or investment (Continued)(continued) |
| | Country of | Type of | Registered | Business nature and scope | | Percentage of equity interest held | | Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | | | | | | | | | | | | | Huaneng Chongqing Fengjie Wind Power Generation Limited Liability Company* | | PRC | held 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* | | PRC | held directly | RMB 10,000,000 | Construction, operation and management of Photovoltaic Power | | | 100 | % | | | 100 | % | Huaneng Jingxing Photovoltaic Power Limited Liability Company* | | PRC | held directly | RMB 100,000 | Investment, construction, and management of photovoltaic power plants | | | 100 | % | | | 100 | % | Huaneng Wulatehouqi Clean Energy Limited Liability Company* | | PRC | held directly | RMB 100,000 | Construction, operation and management of power plants and related projects | | | 100 | % | | | 100 | % | Huaneng Shanxi Energy Sales Limited Liability Company* | | PRC | held directly | RMB 200,000,000 | Power supply and sales supply of heat, cold and water | | | 100 | % | | | 100 | % | Huaneng Chongqing Energy Sales Limited Liability Company* | | PRC | held directly | RMB 210,000,000 | Operation of natural gas, Electric energy and thermal energy sales | | | 100 | % | | | 100 | % | Huaneng Hunan Energy Sales Limited Liability Company* | | PRC | held directly | RMB 210,000,000 | Electric energy and thermal energy sales | | | 100 | % | | | 100 | % | Huaneng Jiangxi Energy Sales Limited Liability Company* | | PRC | held directly | RMB 210,000,000 | Construction, operation and management of heating and power supply facilities | | | 100 | % | | | 100 | % | Huaneng Hebei Energy Sales Limited Liability Company* | | PRC | held 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* | | PRC | held directly | RMB 210,000,000 | Sales of power, heating and gas | | | 100 | % | | | 100 | % | Huaneng Handan Heating Limited Liability Company* | | PRC | held 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* | | PRC | held directly | RMB 10,000,000 | Photovoltaic Power, power supply and sales | | | 100 | % | | | 100 | % | Huaneng (Fujian) Energy Sales Limited Liability Company* | | PRC | held directly | RMB 210,000,000 | Sales of power, heating and gas | | | 100 | % | | | 100 | % | Huaneng Hubei Energy Sales Limited Liability Company* | | PRC | held directly | RMB 210,000,000 | Sales of power, heating and gas | | | 100 | % | | | 100 | % | Huaneng (Sanming) Clean Energy Limited Liability Company* | | PRC | held directly | RMB 500,000 | Construction, operation and management of wind power, photovoltaic power station and related projects | | | 100 | % | | | 100 | % |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng Chongqing Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Operation of natural gas, electric energy and thermal energy products sales | 100% | 100% | | | | | | | | Huaneng Chongqing Luohuang Energy Sales Limited Liability Company | PRC | held indirectly | RMB 210,000,000 | Sales and supply of electricity, sales of thermal products | 90% | 90% | | | | | | | | Huaneng Chongqing Tongliang Energy Sales Limited Liability Company | PRC | held indirectly | RMB 210,000,000 | Operation of natural gas, sales of electricity supply, sales of thermal products | 51% | 51% | | | | | | | | Huaneng Hunan Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Electricity and thermal energy products sales | 100% | 100% | | | | | | | | Huaneng Jiangxi Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Construction, operation and management of heating and power supply facilities | 100% | 100% | | | | | | | | Huaneng Hebei Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Construction, installation, maintenance and repair of heating and power supply facilities | 100% | 100% | | | | | | | | Huaneng Henan Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Sales of electricity, heating, gas and other energy products | 100% | 100% | | | | | | | | Huaneng Handan Heating Limited Liability Company | PRC | held directly | RMB 100,000,000 | Construction, operation and maintenance of heating sources and pipe network | 100% | 100% | | | | | | | | Huaneng (Huzhou Development Zone) Photovoltaic Power Generation Limited Liability Company | PRC | held directly | RMB 10,000,000 | Photovoltaic power generation; power supply, purchase and sale | 100% | 100% | | | | | | | | Huaneng Fujian Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Sales of electricity, heating, gas and other energy products | 100% | 100% | | | | | | | | Huaneng Hubei Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Sales of electricity, heating, gas and other energy products | 100% | 100% | | | | | | | | Huaneng (Sanming) Clean Energy Limited Liability Company | PRC | held directly | RMB 500,000 | Construction, operation and management of wind power, photovoltaic power station and related projects | 100% | 100% | | | | | | | | Huaneng Yueyang Xingang Photovoltaic Power Generation Limited Liability Company | PRC | held indirectly | RMB 16,000,000 | Construction, operation and management of electricity projects, development and utilization of clean energy | 60% | 60% | | | | | | | | Huaneng Shanghai Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Power supply (except construction and operation of electricity network), technology services in energy conservation and environmental protection | 100% | 100% | | | | | | | | Huaneng Anhui Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Sales of electricity, heating gas and other energy product | 100% | 100% |
9 | Investments in subsidiaries (Continued)(continued) |
| (i) | Subsidiaries acquired through establishment or investment (Continued)(continued) |
| | Country of | Type of | Registered | Business nature and scope | | Percentage of equity interest held | | Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | | | | | | | | | | | | | Huaneng Yueyang Xingang Photovoltaic Power Limited Liability Company* | | PRC | held 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* | | PRC | held 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* | | PRC | held directly | RMB 10,000,000 | Production and supply of electricity power | | | 100 | % | | | 100 | % | Huaneng Anhui Energy Sales Limited Liability Company* | | PRC | held directly | RMB 210,000,000 | Sales of power, heating and gas | | | 100 | % | | | 100 | % | Huaneng (Shanghai) Power Maintenance Limited Liability Company* | | PRC | held directly | RMB 200,000,000 | Construction and repair of electric power facilities | | | 100 | % | | | 100 | % |
* | These companies were newly established in 2016. |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng (Shanghai) Power Maintenance Limited Liability Company | PRC | held directly | RMB 200,000,000 | Contracting installation and repair of electricity facilities | 100% | 100% | | | | | | | | Huaneng Guanyun Clean Energy Power Limited Liability Company | PRC | held directly | RMB 26,000,000 | Sales of electricity | 100% | 100% | | | | | | | | Huaneng Jianchang Photovoltaic Power Generation Limited Liability Company | PRC | held directly | RMB 10,000,000 | Production and supply of electricity, development and utilization of clean energy resources | 100% | 100% | | | | | | | | Huaneng Chaoyang Photovoltaic Power Generation Limited Liability Company | PRC | held directly | RMB 10,000,000 | Production and supply of electricity, development and utilization of clean energy resources | 100% | 100% | | | | | | | | Huaneng (Fujian) Port Limited Company | PRC | held directly | RMB 169,710,000 | Port management, investment and development | 100% | 100% | | | | | | | | Huaneng Shijiazhuang Energy Limited Liability Company | PRC | held directly | RMB 60,000,000 | Production and supply of heating, purchase and sales of electricity | 66.60% | 66.60% | | | | | | | | Huaneng Jiangyin Combined Cycle Co-generation Limited Liability Company | PRC | held directly | RMB 600,000,000 | Production and supply of electricity, production and supply of heating | 51% | 51% | | | | | | | | Huaneng Anyang Energy Limited Liability Company | PRC | held directly | RMB 10,000,000 | Production and supply of electricity, production and supply of heating | 100% | 100% | | | | | | | | Huaneng Shanxi Comprehensive Energy Limited Liability Company (“Shanxi Comprehensive Energy”) | PRC | held directly | RMB 120,000,000 | Production and supply of electricity, production and supply of heating | 100% | 100% | | | | | | | | Huaneng Zhanhua Photovoltaic Power Generation Limited Company (“Zhanhua Photovoltaic Company”) (iv) | PRC | held indirectly | RMB 145,790,000 | Photovoltaic power generation | 46.40% | 58% | | | | | | | | Huaneng Weishan New Energy Limited Company (“Weishan New Energy”) (iv) | PRC | held indirectly | RMB 167,000,000 | Investment, production and sales of new energy power generation projects | 40% | 100% | | | | | | | | Huaneng Ruyi (Helan) New Energy Limited Company (“Helan New Energy”) (iv) | PRC | held indirectly | RMB 19,000,000 | Photovoltaic power generation | 40% | 100% | | | | | | | | Huaneng Dezhou New Energy Limited Company (iv) | PRC | held indirectly | RMB 3,100,000 | Photovoltaic power generation, wind power generation, biomass power generation | 80% | 100% | | | | | | | | Zhaodong Huaneng Dechang Solar Power Generation Limited Company | PRC | held indirectly | RMB 30,810,000 | Solar energy generation and technology promotion, repair electricity facilitie | 100% | 100% |
9 | Investments in subsidiaries (Continued)(continued) |
| (i) | Subsidiaries acquired through establishment or investment (continued) |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Daqing Huaneng Shuangyu Solar Power Generation Limited Company | PRC | held indirectly | RMB 80,796,000 | Solar energy generation | 100% | 100% | | | | | | | | Huaneng Mingguang Wind Power Generation Limited Liability Company | PRC | held directly | RMB 10,000,000 | Production and supply of electricity; investment, construction, operation and management of electricity projects | 100% | 100% | | | | | | | | Huaneng Guangxi Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | Power supply, contracting installation and repair of electricity facilities | 100% | 100% | | | | | | | | Huaneng Ruzhou Clean Energy Limited Liability Company (“Ruzhou Clean Energy”) (v) | PRC | held directly | RMB 80,000,000 | Production and supply of electricity projects, investment, construction and operation of electricity projects | 95% | 100% | | | | | | | | Huaneng Hunan Lianping Wind Power Generation Limited Liability Company | PRC | held indirectly | RMB 173,920,000 | Production and supply of electricity | 80% | 80% | | | | | | | | Huaneng Abagaqi Clean Energy Limited Liability Company | PRC | held directly | RMB 100,000 | Production, supply and sales of electricity and thermal energy | 100% | 100% | | | | | | | | Huaneng Jiashan Photovoltaic Power Generation Limited Liability Company | PRC | held directly | RMB 10,000,000 | Production and supply of electricity | 100% | 100% | | | | | | | | Huaneng Zhejiang Energy Sales Limited Liability Company | PRC | held directly | RMB 210,000,000 | New energy technology development, technology consulting, transferring of results | 100% | 100% | | | | | | | | Huaneng Guangdong Shantou Power Generation Limited Liability Company | PRC | held directly | RMB 10,000,000 | Production and supply of electricity and thermal energy | 100% | 100% | | | | | | | | Huaneng Shantou Photovoltaic Power Generation Limited Liability Company | PRC | held directly | RMB 100,000 | Production and supply of electricity | 100% | 100% | | | | | | | | Huaneng Guigang Clean Energy Limited Liability Company | PRC | held directly | RMB 10,000,000 | Production and supply of electricity, investment, construction and operation of electricity projects | 100% | 100% | | | | | | | | Huaneng Changxing Jiapu Photovoltaic Power Generation Limited Liability Company | PRC | held directly | RMB 10,000,000 | Production and supply of electricity, investment in electricity projects Limited Liability Company | 100% | 100% | | | | | | | | Huaneng Hainan Energy Sales | PRC | held indirectly | RMB 210,000,000 | Construction and operation of heat and power supply facilities, operation of heat resources, heat network and power supply facilitie | 91.80% | 91.80% |
9 | Investments in subsidiaries (continued) |
| (i) | Subsidiaries acquired through establishment or investment (continued) |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng Yangpu Co-generation Limited Company | PRC | held indirectly | RMB 802,222,000 | Investment, construction, operation and management of electricity projects and heat pipe network | 82.62% | 82.62% | | | | | | | | Huaneng Zhejiang Pinghu Offshore Wind Power Generation Co., Ltd.* | PRC | held directly | RMB 2,200,000,000 | Production and supply of electricity, investment, construction of electricity distribution networks | 100% | 100% | | | | | | | | Huaneng Liaoning Clean Energy Limited Liability Company* (“Liaoning Clean Energy”) | PRC | held directly | RMB 170,000,000 | Technology development technical advice services for clean energy | 100% | 100% | | | | | | | | Jiangsu Huaneng Zhongyang New Energy Power Generation Co., Ltd.* | PRC | held directly | RMB 28,000,000 | Production and supply of electricity, investment, construction and operation of electricity projects | 75% | 75% | | | | | | | | Huaneng Henan Puyang Clean Energy Limited Liability Company* | PRC | held directly | RMB 10,000,000 | Production and supply of electricity, investment, construction and operation of electricity projects | 100% | 100% | | | | | | | | Huaneng Guizhou Energy Sales Co., Ltd.* | PRC | held directly | RMB 210,000,000 | Sales of electricity, heat and gas | 100% | 100% | | | | | | | | Huaneng Guangdong Shantou Offshore Wind Power Generation Co., Ltd.* | PRC | held directly | RMB 10,000,000 | Investment and development of wind energy and new energy | 100% | 100% | | | | | | | | Jiyuan Huaneng Energy Sales Co., Ltd.* | PRC | held indirectly | RMB 20,000,000 | Sales of electricity, heat and gas | 51% | 51% | | | | | | | | Huaneng Zhenlai Photovoltaic Power Generation Co., Ltd.* (“Zhenlai Photovoltaic Power”) (vi) | PRC | held indirectly | RMB 29,958,660 | Investment, construction, production, operation and overhaul of photovoltaic power generation projects | 50% | 100% | | | | | | | | Huaneng Yushe Poverty Relief Energy Co., Ltd.* | PRC | held indirectly | RMB 14,760,000 | Construction, operation and management of photovoltaic power generation and new energy projects | 90% | 90% | | | | | | | | Huaneng Anhui Mengcheng Wind Power Co., Ltd.* | PRC | held directly | RMB 10,000,000 | Production and supply of electricity, investment, construction and operation of electricity projects | 100% | 100% | | | | | | | | Huaneng Anshun Comprehensive Energy Co., Ltd.* | PRC | held directly | RMB 100,000 | Production and supply of electricity, investment, construction and operation of electricity projects | 100% | 100% | | | | | | | | Huaneng Shengdong Rudong Offshore Wind Power Co., Ltd.* (“Huaneng Shengdong Rudong”) | PRC | held directly | RMB 1,000,000,000 | Production and sales of electric power; investment in wind power generation | 79% | 79% |
9 | Investments in subsidiaries (continued) |
| (i) | Subsidiaries acquired through establishment or investment (continued) |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng Zhejiang Cangnan Offshore Wind Power Co., Ltd.* | PRC | held directly | RMB 10,000,000 | Production and sales of electric power; investment in wind power generation | 100% | 100% | | | | | | | | Huaneng Zhejiang Ruian Offshore Wind Power Co., Ltd.* | PRC | held directly | RMB 10,000,000 | Production and sales of electric power; investment in wind power generation | 100% | 100% | | | | | | | | Shengdong Rudong Offshore Wind Power Co., Ltd.* (“Shengdong Rudong Offshore Wind Power”) | PRC | held indirectly | RMB 5,000,000 | Ancillary project construction of wind farm, wind farm maintenance | 79% | 100% | | | | | | | | Huaneng (Shanghai) Photovoltaic Power Co., Ltd (“Shanghai Photovoltaic Power”) | PRC | held directly | RMB 50,000,000 | Technical service of wind power generation | 100% | 100% | | | | | | | | Sinosing Services PTE.Ltd.* (“SSSPL”) | Singapore | held indirectly | USD 1 | Investment service | 100% | 100% | | | | | | | | Huaneng Yangqu Wind Power Co., Ltd.* (“Yangqu Wind Power”) | PRC | held indirectly | RMB 500,000 | Construction, operation and management of wind power projects | 100% | 100% | | | | | | | | Huaneng Ruicheng Comprehensive Energy Co., Ltd. * (“Ruicheng Comprehensive Energy”) | PRC | held indirectly | RMB 216,300,000 | Construction, operation and management of new energy power projects, power generation | 100% | 100% | | | | | | | | Huaneng Xiayi Wind Power Co., Ltd.*(“Xiayi Wind., Power”) | PRC | held directly | RMB 500,000 | Production and sale of electric power, and investment in electricity projects | 100% | 100% | | | | | | | | Huaneng (Anhui Shitai) Wind Power Co., Ltd. *(“Anhui Shitai Wind Power”) | PRC | held directly | RMB 100,000 | Production and sale of electric power, and investment in electricity projects | 100% | 100% | | | | | | | | Huaneng (Tianjin) Energy Sales Co., Ltd. *(“Tianjin., Energy Sales”) | PRC | held directly | RMB 200,000,000 | Power and thermal energy supply, energy conservation technology service, transmission and substation project contracting | 100% | 100% | | | | | | | | Huaneng Qingneng Tongyu Power Co., Ltd. *(“Qingneng Tongyu Power”) | PRC | held indirectly | RMB 180,000,000 | Development and operation of new energy power projects | 100% | 100% | | | | | | | | Huaneng Jiyang Biomass Thermal Power Co., Ltd. * (“Jiyang Biomass Thermal Power”) | PRC | held indirectly | RMB 20,000,000 | Production and sale of new energy power | 80% | 100% | | | | | | | | Huaneng Wulian New Energy Limited Company * (“Wulian New Energy”) | PRC | held indirectly | RMB 300,000,000 | Photovoltaic power generation, wind power generation, investment and development of new energy power projects | 88.80% | 100% | | | | | | | | Huaneng Sheyang New Energy Power Generation Co., Ltd. * (“Sheyang New Energy” | PRC | held directly | RMB 1,080,000,000 | Production and sale of, electricity and heat | 34% | 70% |
9 | Investments in subsidiaries (continued) |
| (i) | Subsidiaries acquired through establishment or investment (continued) |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng Guanling New Energy Power Generation Co., Ltd. * (“Guanling New Energy”) | PRC | held directly | RMB 100,000,000 | Production and sale of, electricity and heat | 100% | 100% | | | | | | | | Huaneng Luobei Wind Power Co., Ltd. *(“Luobei Wind Power”) | PRC | held indirectly | RMB 144,000,000 | Development and management, of new energy technology operation and management of wind power, maintenance of wind power equipment | 100% | 100% | | | | | | | | Huaneng Sihong New Energy Co., Ltd. *(“Sihong New Energy”) | PRC | held directly | RMB 150,000,000 | Development and management of new energy technology | 100% | 100% | | | | | | | | Huaneng Taiqian Wind Power Co., Ltd. *(“Taiqian Wind Power”) | PRC | held directly | RMB 97,800,000 | Production and sale of electricity, and heat, development, investment and management of new energy technology, development and utilization of clean energy | 51% | 51% | | | | | | | | Huaneng Zhenping Clean Energy Co., Ltd. *(“Zhenping Clean Energy”) | PRC | held directly | RMB 500,000 | Production and sale of electricity, development and utilization, of clean energy | 100% | 100% | | | | | | | | Huaneng (Heze Dongming) New Energy Co., Ltd* (“Heze Dongming New Energy”) | PRC | held directly | RMB 15,000,000 | Photovoltaic power generation, wind power generation and biomass power generation | 100% | 100% | | | | | | | | Huaneng Jiangkou Wind Power Co., Ltd. *(“Jiangkou Wind Power”) | PRC | held directly | RMB 20,000,000 | Production and sale of wind power, development and utilization of clean energ | 100% | 100% |
* These companies were newly established in 2019.
9 | Investments in subsidiaries (continued) |
| (ii) | Subsidiaries acquired from business combinations under common control |
| | Country of | Type of | Registered | Business nature and scope | �� | Percentage of equity interest held | | Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | | | | | | | | | | | Huaneng (Suzhou Industrial Park) Power Generation Co., Ltd. | | PRC | held directly | RMB 632,840,000 | Power generation | | | 75 | % | | | 75 | % | PRC | held directly | RMB 632,840,000 | Power generation | 75% | 75% | Huaneng Qinbei Power Co., Ltd. | | PRC | held directly | RMB 1,540,000,000 | Power generation | | | 60 | % | | | 60 | % | | | | | | | | | | Huaneng Qinbei Power Generation Co., Ltd. (“Qinbei Power”) | | PRC | held directly | RMB 1,540,000,000 | Power generation | 60% | 60% | | | | | | | | | Huaneng Yushe Power Generation Co., Ltd. | | PRC | held directly | RMB 615,760,000 | Power generation | | | 60 | % | | | 60 | % | PRC | held directly | RMB 615,760,000 | Power generation, power distribution, sales of power | 60% | 60% | | | | | | | | | Huaneng Hunan Yueyang Power Generation Limited Liability Company | | PRC | held directly | RMB 1,935,000,000 | Power generation | | | 55 | % | | | 55 | % | PRC | held directly | RMB 1,935,000,000 | Power generation | 55% | 55% | Huaneng Chongqing Luohuang Power Generation Limited Liability Company(“Luohuang Power”) | | PRC | held directly | RMB 1,748,310,000 | Power generation | | | 60 | % | | | 60 | % | | | | | | | | | | Huaneng Chongqing Luohuang Power Generation Limited Liability Company (“Luohuang Power”) | | PRC | held directly | RMB 1,748,310,000 | Power generation | 60% | 60% | | | | | | | | | Huaneng Pingliang Power Generation Co., Ltd. | | PRC | held directly | RMB 924,050,000 | Power generation | | | 65 | % | | | 65 | % | PRC | held directly | RMB 924,050,000 | Power generation | 65% | 65% | Huaneng Nanjing Jinling Power Co., Ltd. (“Jinling Power”) | | PRC | held directly | RMB 1,513,136,000 | Power generation | | | 60 | % | | | 60 | % | | | | | | | | | | Huaneng Nanjing Jinling Power Generation Co., Ltd. | | PRC | held directly | RMB 1,513,136,000 | Power generation | 60% | 70% | | | | | | | | | Huaneng Qidong Wind Power Generation Co., Ltd. | | PRC | held directly | RMB 391,738,500 | Development of wind power project, production and sales of electricity | | | 65 | % | | | 65 | % | PRC | held directly | RMB 391,738,500 | Development of wind power projects, production and sales of electricity | 65% | 65% | Tianjin Huaneng Yangliuqing Co-generation Limited Liability Company(“Yangliuqing Cogeneration”) | | PRC | held 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) | | PRC | held directly | RMB 3,702,090,000 | Construction and operation of power plants and related construction projects | | | 41 | % | | | 66 | % | | | | | | | | | | Tianjin Huaneng Yangliuqing Co-generation Limited Liability Company (“Yangliuqing Co-generation”) | | PRC | held 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 Co-generation”) (vii) | | PRC | held 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”) | | PRC | held directly | RMB 1,445,754,800 | Power generation comprehensive utilization of fly ash | | | 75 | % | | | 75 | % | PRC | held directly | RMB 1,478,461,500 | Investment, construction, operation and management of electricity projects, development and utilization of clean energy resources | 75% | 75% | | | | | | | | | Huaneng Anyuan Power Generation Co., Ltd. (“Anyuan Power”) | | PRC | held directly | RMB 1,175,117,300 | Construction and operation of power plants and related construction projects | | | 100 | % | | | 100 | % | PRC | held directly | RMB 1,175,117,300 | Construction and operation of power plants and related construction projects, production of electricity | 100% | 100% | | | | | | | | | Huaneng Hualiangting Hydropower Co., Ltd. (“Hualiangting Hydropower”) | | PRC | held directly | RMB 50,000,000 | Generation and transfer of power supply, water supply (irrigation) | | | 100 | % | | | 100 | % | PRC | held 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) | | PRC | held 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”) | | PRC | held directly | RMB 780,000,000 | General business projects: thermal power, power development, power services | | | 100 | % | | | 100 | % | | | | | | | | | | Huaneng Chaohu Power Generation Co., Ltd. (“Chaohu Power”) (viii) | | PRC | held directly | RMB 840,000,000 | Construction, operation, Menagment of electricity projects, development and utilization of clean energy resources | 60% | 70% |
9 | Investments in subsidiaries (Continued)(continued) |
| (ii) | Subsidiaries acquired from business combinations under common control (Continued)(continued) |
| | Country of | Type of | Registered | Business nature and scope | | Percentage of equity interest held | | Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | | | | | | | | | | | Huaneng Jingmen Thermal Power Co., Ltd. (“Jingmen Thermal Power”) | | PRC | held directly | RMB 780,000,000 | Thermal power, power development and other service | 100% | 100% | | | | | | | | | Enshi Qingjiang Dalongtan Hydropwer Development Co., Ltd. (“Dalongtan Hydropower”) | | PRC | held directly | RMB 76,000,000 | Hydropower development, production and management of electric power urban water supply | | | 97 | % | | | 97 | % | PRC | held directly | RMB 177,080,000 | Hydropower development, production and management of electric power, urban water supply | 98.01% | 98.01% | Huaneng Suzhou Thermal Power Co., Ltd. (“Suzhou Thermal Power”) (iv) | | PRC | held 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) | | PRC | held 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”) | | PRC | held directly | RMB 536,923,299 | Construction and operation of power plants and related construction projects | | | 100 | % | | | 100 | % | | | | | | | | | | Huaneng Suzhou Thermal Power Co., Ltd. (“Suzhou Thermal Power”) (ix) | | PRC | held directly | RMB 600,000,000 | Construction, operation and management of electricity projects, development and utilization of clean energy | 53.45% | 100% | | | | | | | | | Huaneng Hainan Power Generation Limited Company (“Hainan Power”) | | PRC | held directly | RMB 1,326,419,587 | Investment, construction, operation of various power plants, regular energy and new energy development | 91.80% | 91.80% | | | | | | | | | Huaneng Ruijin Power Generation Co., Ltd. (“Ruijin Power Generation”) (xi) | | PRC | held directly | RMB 609,923,299 | Construction, operation, management of electricity projects, development and utilization of clean energy | 50% | 100% | | | | | | | | | Huaneng Yingcheng Thermal Power Co., Ltd. (“Yingcheng Thermal Power”) | | PRC | held directly | RMB 650,000,000 | Construction and operation of power plants and related construction projects | | | 100 | % | | | 100 | % | PRC | held directly | RMB 650,000,000 | Construction and operation of power plants and production, sales of power and heat | 100% | 100% | | | | | | | | | Huaneng Heilongjiang Power Generation Limited Company (“Heilongjiang Power”) | | PRC | held directly | RMB 945,350,000 | Development, investment, construction, production and management of power (thermal) projects | 100% | 100% | | | | | | | | | Huaneng Hegang Power Generation Limited Company (“Hegang Power”) | | PRC | held indirectly | RMB 1,092,550,000 | Electricity power construction, energy conservation and, development projects, heat production and supply | 64% | 64% | | | | | | | | | Huaneng Xinhua Power Generation Limited Liability Company (“Xinhua Power”) | | PRC | held indirectly | RMB 284,880,000 | Power generation, power equipment repair, coal sales | 70% | 70% | | | | | | | | | Huaneng Tongjiang Wind Power Generation Limited Company (“Tongjiang Wind Power”) | | PRC | held indirectly | RMB 330,000,000 | Wind power generation, wind power plants operation, planning and design | 82.85% | 82.85% | | | | | | | | | Huaneng Daqing Thermal Power Limited Company (“Daqing Thermal Power”) | | PRC | held indirectly | RMB 630,000,000 | Power generation, thermal production and supply | 100% | 100% | | | | | | | | | Daqing Lvyuan Wind Power Generation Limited Company (“Lvyuan Wind Power”) | | PRC | held indirectly | RMB 497,000,000 | Wind power generation | 100% | 100% | | | | | | | | | Huaneng Yichun Thermal Power Limited Company (“Yichun Thermal Power”) | | PRC | held indirectly | RMB 581,000,000 | Power construction, production and sales, thermal production and sales | 100% | 100% |
9 | Investments in subsidiaries (continued) |
| (ii) | Subsidiaries acquired from business combinations under common control (continued) |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng Heilongjiang Energy Sales Limited Company (“Heilongjiang Energy Sales”) | PRC | held indirectly | RMB 210,000,000 | Power supply, the production of heat and hot water | 100% | 100% | | | | | | | | Zhaodong Huaneng Thermal Power Limited Company (“Zhaodong Thermal Power”) | PRC | held indirectly | RMB 10,000,000 | Heating production and supply | 100% | 100% | | | | | | | | Huaneng Jilin Power Generation Limited Company (“Jilin Power”) | PRC | held directly | RMB 2,879,340,000 | Power (thermal) projects, development of new energy projects investment, construction, production, operation and sales | 100% | 100% | | | | | | | | Huaneng Linjiang Jubao Hydropower Limited Company (“Jubao Hydropower”) | PRC | held indirectly | RMB 45,624,000 | Hydropower development and operation, construction and operation of photovoltaic power generation | 100% | 100% | | | | | | | | Huaneng Jilin Energy Sales Limited Company (“Jilin Energy Sales”) | PRC | held indirectly | RMB 210,000,000 | Thermal (cold) production and supply, power supply | 100% | 100% | | | | | | | | Shandong Power | PRC | held directly | RMB 4,241,460,000 | Power (thermal) project development, investment, construction and management | 80% | 80% | | | | | | | | Huaneng Jining New Energy Limited Company (“Jining New Energy”) (iv) | PRC | held indirectly | RMB 38,000,000 | Investment, construction and management of photovoltaic and wind power projects | 80% | 100% | | | | | | | | Huaneng Zibo Boshan Photovoltaic Power Limited Company (“Zibo Photovoltaic”) (iv) | PRC | held indirectly | RMB 22,000,000 | Solar power generation, sales | 80% | 100% | | | | | | | | Huaneng Rizhao Thermal Power Limited Company (“Rizhao Thermal Power”) (iv) | PRC | held indirectly | RMB 52,000,000 | Urban heat construction, maintenance and operation, design and construction of heat engineering | 80% | 100% | | | | | | | | Huaneng Laiwu New Energy Limited Company (“Laiwu New Energy”) (iv) | PRC | held indirectly | RMB 68,000,000 | Photovoltaic power and wind power generation | 80% | 100% | | | | | | | | Huaneng Shandong Sishui New Energy Limited Company (“Sishui New Energy”) (iv) | PRC | held indirectly | RMB 36,000,000 | Solar energy grid connected generation | 80% | 100% | | | | | | | | Huaneng Shandong Electric and Thermal Power Marketing Limited Company (“Shandong Power Marketing”) (iv) | PRC | held indirectly | RMB 200,000,000 | Sales and service of power and heating products, investment in power industry | 80% | 100% | | | | | | | | Huaneng Shandong Information Technology Limited Company (“Shandong Power Information Company”) (iv) | PRC | held indirectly | RMB 80,000,000 | Information technology and management consulting services | 80% | 100% | | | | | | | | Huaneng Zhanhua New Energy Limited Company (“Zhanhua New Energy”) (iv) | PRC | held indirectly | RMB 235,298,200 | Wind power, photovoltaic power generation | 80% | 100% |
9 | Investments in subsidiaries (continued) |
| (ii) | Subsidiaries acquired from business combinations under common control (continued) |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Huaneng Weihai Port Photovoltaic Power Generation Limited Company (“Port Photovoltaic”) (iv) | PRC | held indirectly | RMB 30,760,000 | Photovoltaic power generation projects development and construction, electricity sales | 80% | 100% | | | | | | | | Huaneng Jinan Huangtai Power Limited Company ("Huangtai Power") (iv)
| PRC | held indirectly | RMB 1,391,878,400 | Electricity power production, heat management | 72% | 90% | | | | | | | | Huaneng Dezhou Thermal Power Limited Company (“Dezhou Thermal Power”) (iv) | PRC | held indirectly | RMB 40,000,000 | Urban heat construction, maintenance and operation, design and construction of heat engineering | 68% | 85% | | | | | | | | Huaneng Dongying New Energy Limited Company ("Dongying New Energy") (iv)
| PRC | held indirectly | RMB 92,601,483 | Wind power projects development, wind power generation and sales of electricity | 56% | 70% | | | | | | | | Huaneng Shandong Power Generation Maintenance Technology Limited Company (“Shandong Maintenance Company”) (iv) | PRC | held indirectly | RMB 50,000,000 | Power engineering design, construction | 76.55% | 100% | | | | | | | | Huaneng Shandong Electric Power Fuel Limited Company (“Shandong Fuel Company”) (iv) | PRC | held indirectly | RMB 100,000,000 | Wholesale operation of coal | 76.55% | 100% | | | | | | | | Shandong Rizhao Power Generation Limited Company (“Rizhao Power”) (iv) | PRC | held indirectly | RMB 1,245,587,900 | Heat, engaged in power business | 88.80% | 100% | | | | | | | | Huaneng Laiwu Power Generation Limited Company (“Laiwu Power”) (iv) | PRC | held indirectly | RMB 1,800,000,000 | Power production | 74.32% | 100% | | | | | | | | Huaneng Shandong Ruyi Coal Power Limited Company (“Ruyi Coal Power”) (iv) | PRC | held indirectly | RMB 1,294,680,000
| Development, investment, construction, operation and management of electricity power and coal | 40% | 100% | | | | | | | | Huaneng Jiaxiang Power Generation Limited Company (“Jiaxiang Power”) (iv) | PRC | held indirectly | RMB 646,680,000 | Power generation, electrical quipment maintenance | 40% | 100% | | | | | | | | Huaneng Qufu Co-generation Limited Company (“Qufu Co-generation”) (iv) | PRC | held indirectly | RMB 300,932,990 | Sales and production of electric power, thermal power | 40% | 100% | | | | | | | | Huaneng Jining Hi-Tech Zone Co-generation Limited Company (“Jining Co-generation”) (iv) | PRC | held indirectly | RMB 118,699,760 | Heat supply and power generation | 40% | 100% | | | | | | | | Huaneng Shandong (Hong Kong) Investment Limited Company (“Hong Kong Investment”) (iv)
| Hong Kong | held indirectly | 10,000 Shares | Investment | 80% | 100% |
9 | Investments in subsidiaries (continued) |
| (ii) | Subsidiaries acquired from business combinations under common control (continued) |
| Country of | Type of | Registered | Business nature and scope | Percentage of equity interest held | Name of subsidiary | incorporation | interest held | capital | of operations | Interest | Voting | | | | | | | | Shandong Silk Road International Power Limited Company (“Shandong Silk Road”) (iv) | PRC | held indirectly | RMB 35,000,000 | Contracting overseas projects and domestic international bidding projects, construction and operation of power projects | 80% | 100% | | | | | | | | Huaneng Rongcheng New Energy Co., Ltd. (“Rongcheng New Energy”) (iv) | PRC | held indirectly | RMB 36,540,000 | Wind power generation | 48% | 100% | | | | | | | | Huaneng Jining Yunhe Power Generation Co., Ltd. (“Yunhe Power”) (iv)
| PRC | held indirectly | RMB 696,355,300 | Electrical (thermal) production and on-grid sales, technology consulting and services | 78.68% | 98.35% | | | | | | | | Huaneng Linyi Power Generation Limited Company(“Linyi Power”) (iv) | PRC | held indirectly | RMB 1,093,313,400 | Power generation | 60% | 75% | | | | | | | | Liaocheng Changrun National Electric Heating Limited Company (“Liaocheng Changrun”) (iv) | PRC | held indirectly | RMB 130,000,000 | Heat operation, installation and repair of water, electricity, heating | 60% | 75% | | | | | | | | Linyi Lantian Thermal Powerr Limited Company (“Lantian Thermal Power”) (iv) | PRC | held indirectly | RMB 36,000,000 | Heat supply, maintenance of thermal power network, power sales, installation and maintenance of distribution facilities | 54.40% | 68% | | | | | | | | Yantai 500 Heating Limited Company (“Yantai 500”) (iv) | PRC | held indirectly | RMB 20,500,000 | Central heat services, plumbing and pipe installation services | 64% | 80% | | | | | | | | Huaneng Liaocheng Co-generation Limited Company (“Liaocheng Co-generation) (iv) | PRC | held indirectly | RMB 610,670,000 | Power, heat production and sales | 60% | 100% | | | | | | | | Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. (“Zhongyuan Gas”) | PRC | held directly | RMB 400,000,000 | Investment, construction, operation and management of power projects, thermall supply, development and utilization of clean energy resources | 90% | 90% |
The subsidiaries above and the Company are all controlled by Huaneng Group before and after the acquisitions.
9 | Investments in subsidiaries (continued) |
| (iii) | Subsidiaries acquired from business combinations not under common control |
| | Country of | Type of | Registered | Business nature and scope | | Percentage of equity interest held | | | | | | Percentage of equity interest held
| Name of subsidiary | | incorporation | interest held | capital | of operations | | Interest | | | Voting | | Country of incorporation
| Type of interest held
| Registered capital
| Business nature and scope of operations
| Interest
| Voting
| | | | | | | | | | | | | | | | | Huaneng Weihai Power Limited Liability Company(“Weihai Power”) | | PRC | held directly | RMB 1,822,176,621 | Power generation | | | 60 | % | | | 60 | % | | Huaneng Huaiyin Power Limited Company | | PRC | held directly | RMB 265,000,000 | Power generation | | | 100 | % | | | 100 | % | | Huaneng Weihai Power Generation Limited Liability Company(“Weihai Power”) | | PRC | held directly | RMB 1,822,176,621 | Power generation | 60% | | | | | | | | Huaneng Huaiyin Power Generation Limited Company | | PRC | held directly | RMB 265,000,000 | Power generation | 100% | | | | | | | | Huade County Daditaihong Wind Power Utilization Limited Liability Company | | PRC | held directly | RMB 196,400,000 | Wind power development and utilization | | | 100 | % | | | 100 | % | PRC | held directly | RMB 196,400,000 | Wind power development and utilization | 100% | Huaneng Zhanhua Co-generation Limited Liability Company | | PRC | held directly | RMB 190,000,000 | Production and sales of electricity and steam | | | 100 | % | | | 100 | % | | | | | | | | | Huaneng Zhanhua Co-generation Limited Company | | PRC | held directly | RMB 190,000,000 | Production and sales of electricity and thermal energy | 100% | | | | | | | | Shandong Hualu Sea Transportation Limited Company | | PRC | held directly | RMB 100,000,000 | Cargo transportation along domestic coastal areas | | | 53 | % | | | 53 | % | PRC | held directly | RMB 100,000,000 | Cargo transportation along domestic coastal areas, goods storage | 53% | | | | | | | | Huaneng Qingdao Port Limited Company | | PRC | held directly | RMB 219,845,000 | Loading and conveying warehousing (excluding dangerous goods), conveying, supply of water carriage materials | | | 51 | % | | | 51 | % | PRC | held directly | RMB 219,845,000 | Loading and conveying warehousing, conveying, water carriage materials supply | 51% | Huaneng (Fujian) Harbour Limited Company | | PRC | held directly | RMB 652,200,000 | Port management, cargo loading, water transport material supply | | | 51 | % | | | 51 | % | | | | | | | | | Huaneng Yunnan Diandong Energy Limited Liability Company (“Diandong Energy”) | | PRC | held directly | RMB3,769,140,000 | Electricity projects investment, power generation and sales, coal exploitation and investment | 100% | | | | | | | | Yunnan Diandong Yuwang Energy Limited Company (“Diandong Yuwang”) | | PRC | held directly | RMB 1,700,740,000 | Electricity projects investment, power generation and sales, coal exploitation and investment | 100% | | | | | | | | Huaneng Luoyang Co-generation Limited Liability Company | | PRC | held directly | RMB 600,000,000 | Production and sales of electricity and heating | 80% |
9 | Investments in subsidiaries (Continued)(continued) |
| (iii) | Subsidiaries acquired from business combinations not under common control (Continued)(continued) |
| | Country of | Type of | | Registered | | Business nature and scope | | Percentage of equity interest held | | | | | Name of subsidiary | | incorporation | interest held | | capital | | of operations | | Interest | | | Voting | | | | | | | | | | | | | | | | Fujian Yingda Property Development Limited Company | | PRC | held indirectly | | RMB 50,000,000 | | Real estate development leasing, real estate agency services, warehousing, loading and conveying | | | 51 | % | | | 100 | % | Fujian Xinhuanyuan Industrial Limited Company | | PRC | held indirectly | | RMB 93,200,000 | | Mineral water production and sale | | | 51 | % | | | 100 | % | Huaneng Yunnan Diandong Energy Limited Liability Company (“Diandong Energy”) | | PRC | held directly | | RMB 3,769,140,000 | | Power generation and coal exploitation | | | 100 | % | | | 100 | % | Yunnan Diandong Yuwang Energy Limited Company (“Diandong Yuwang”) | | PRC | held directly | | RMB 1,700,740,000 | | Power generation and coal exploitation | | | 100 | % | | | 100 | % | Huaneng Suzihe Hydropower Development Limited Company | | PRC | held directly | | RMB 50,000,000 | | Hydropower, aquaculture, agriculture irrigation | | | 100 | % | | | 100 | % | Enshi City Mawei Valley Hydropower Development Co., Ltd. | | PRC | held directly | | RMB 101,080,000 | | Hydro-resource development, hydropower, aquaculture | | | 100 | % | | | 100 | % | Kaifeng Xinli Power Generation Co., Ltd. | | PRC | held indirectly | | RMB 146,920,000 | | Power generation | | | 60 | % | | | 100 | % | Huaneng Luoyang Co-generation Limited Liability Company | | PRC | held 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) | | PRC | held directly | | RMB 356,350,000 | | Power generation | | | 51 | % | | | 72 | % | Huaneng Zhumadian Wind Power Generation Co., Ltd. | | PRC | held directly | | RMB 30,000,000 | | Wind power generation | | | 90 | % | | | 90 | % | SinoSing Power | | Singapore | held directly | | US$ 1,476,420,585 | | Investment holding | | | 100 | % | | | 100 | % | Tuas Power | | Singapore | held indirectly | | S$ 1,433,550,000 | | Electricity and gas supply and investment holding | | | 100 | % | | | 100 | % | Tuas Power Supply Pte Ltd. | | Singapore | held indirectly | | S$ 500,000 | | Power sales | | | 100 | % | | | 100 | % | TP Asset Management Pte Ltd. | | Singapore | held indirectly | | S$ 2 | | Render of environment engineering services | | | 100 | % | | | 100 | % | TPGS Green Energy Pte Ltd. | | Singapore | held indirectly | | S$ 1,000,000 | | Provision of utility services | | | 75 | % | | | 75 | % | New Earth Pte Ltd. | | Singapore | held indirectly | | S$ 10,111,841 | | Consultancy in waste recycling | | | 100 | % | | | 100 | % | New Earth Singapore Pte Ltd. | | Singapore | held 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) | | PRC | held indirectly | | RMB 3,000,000 | | Wind power generation | | | 100 | % | | | 100 | % | Luoyang Yangguang Co-generation Limited Liability Company(“Yangguang Cogeneration”) (Note 39) | | PRC | held indirectly | | RMB 250,000,000 | | Production and supply of electric and heating power | | | 100 | % | | | 100 | % |
| | | | | Percentage of equity interest held
| Name of subsidiary | Country of incorporation
| Type of interest held
| Registered capital
| Business nature and scope of operations
| Interest
| Voting
| | | | | | | |
Huaneng Zhumadian Wind Power Generation Co., Ltd | PRC | held directly | RMB 30,000,000 | Wind power generation, new energy development and utilization | 90% | 90% | | | | | | | | SinoSing Power | Singapore | held directly | US$ 1,476,420,585 | Investment holding | 100% | 100% | | | | | | | | Tuas Power | Singapore | held indirectly | S$ 1,433,550,000 | Investment holding | 100% | 100% | | | | | | | | Tuas Power Supply Pte. Ltd. | Singapore | held indirectly | S$ 500,000 | Power sales | 100% | 100% | | | | | | | | TP Asset Management Pte. Ltd. | Singapore | held indirectly | S$ 2 | Render of environment engineering services | 100% | 100% | | | | | | | | TPGS Green Energy Pte. Ltd. | Singapore | held indirectly | S$ 1,000,000 | Provision of utility services | 75% | 75% | | | | | | | | Shanxi Xiaoyi Economic Development Zone Huaneng Energy Service Co., Ltd. (“Shanxi Xiaoyi Energy”) (x) | PRC | held indirectly | RMB 100,000,000 | Electricity sales, sales of raw coal and processed coal | 51% | 100% | | | | | | | | Ruzhou Xuji Wind Power Generation Co., Ltd. | PRC | held indirectly | RMB4,000,000 | Wind power and photovoltaic power generation | 95% | 100% | | | | | | | | Hong Kong Energy (iv) | Hong Kong | held indirectly | US$ 360,000,000 | Investment | 40% | 100% | | | | | | | | Ruyi Pakistan Energy (iv) | Pakistan | held indirectly | US$ 360,000,000 | Electric power production and sales | 40% | 100% | | | | | | | | Shandong Huatai Electric Power Operation & Maintenance (Private) Co., Ltd. (“Huatai Power”) (iv) | Pakistan | held indirectly | 100,000 shares | Power generation operation and maintenance | 40% | 100% |
9 | Investments in subsidiaries (Continued)(continued) |
| (iv) | Subsidiaries acquired from asset acquisitions |
| | | | | Percentage of equity interest held
| Name of subsidiary | Country of incorporation
| Type of interest held
| Registered capital
| Business nature and scope of operations
| Interest
| Voting
| | | | | | | |
Shangrao Hongyuan Power Co., Ltd**(“Hongyuan Power”) | PRC | held indirectly | RMB 397,800,000 | Construction, operation and management of photovoltaic power projects | 100% | 100% | | | | | | | | Poyang Luohong Power Co., Ltd.**(“Luohong Power”) | PRC | held indirectly | RMB 780,000,000 | Investment, construction, operation and management of photovoltaic power projects | 51% | 51% | | | | | | | | Shuozhou Taizhong Wind Power Limited Company** (“Shuozhou Wind Power”) | PRC | held indirectly | RMB 362,703,300 | Investment, construction, operation and management of wind power projects | 51% | 51% | | | | | | | | Wuzhai Taizhong New Energy Wind Power Limited Company** (“Wuzhai Wind Power”) | PRC | held indirectly | RMB 518,147,600 | Investment, construction, operation and management of wind power projects | 51% | 51% | | | | | | | | Xian Xvheng New Energy Limited Company** (“Xvheng New Energy”) (xii) | PRC | held indirectly | RMB 539,000,000 | Construction, operation and management of photovoltaic power projects | 100% | 100% | | | | | | | | Licheng Yingheng Clean Energy Limited Company** (“Yingheng Clean Energy”) (xii) | PRC | held indirectly | RMB 1,100,000,000 | Construction, operation and management of photovoltaic power projects | 49% | 100% |
| ** | These companies were newly acquired in 2019. |
9 | Investments 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 CompanyGroup to exercise all its voting rights in relation to the operation and financial policies of Shidongkou Power. Accordingly, the Group has control over Shidongkou Power. |
| (ii) | The Group holds 90% interests in Liangjiang Power, and Liangjiang Power holds 60% interests in Huaqing Energy. Therefore, the Group indirectly holds 54% equity interests in Huaqing Energy. |
| (iii) | According to the voting in concert agreement entered into between the Group and another shareholder with 27.39% equity interests in Nanjing Combined Cycle Cogeneration, the shareholder agreed to vote the same in respect of profit distribution decisions made by the Company. Accordingly,According to the voting in concert agreement entered into between the Group and another shareholder with 9.13% equity interests in Nanjing Combined Cycle Cogeneration, the shareholder agreed to vote the same in respect of significant financial and operating decisions made by the Group under the circumstances that their legitimate entitlements are guaranteed. As a result, the Group has control over Nanjing Combined Cycle Co-generation. |
| (iv) | These companies are subsidiaries of Shandong Power. The Group holds 80% interests in Shandong Power. Thus, the Group indirectly holds 80% interests in these companies through their parent company. |
Zhanhua New Energy, a wholly-owned subsidiary of Shandong Power, holds 58% equity interests in Zhanhua Photovoltaic Company. Thus, the Group indirectly holds 46.4% equity interests in Zhanhua Photovoltaic Company.
Weishan New Energy and Helan New Energy are wholly-owned subsidiaries of Ruyi Coal Power, a 50% owned subsidiary of Shandong Power. As a result, the Group indirectly holds 40% interests in Weishan New Energy and Helan New Energy.
Shandong Power directly holds 72% interests in Shandong Fuel Company and Shandong Maintenance Company; meanwhile, Shandong Power indirectly holds a total of 23.68% equity interests in Shandong Fuel Company and Shandong Maintenance Company respectively through its own subsidiaries: Huangtai Power, Linyi Power, Liaocheng Co-generation and Yunhe Power. Thus, the Group indirectly holds 76.55% interests in Shandong Maintenance Company and Shandong Fuel Company respectively.
The Group directly holds 44% equity interests in Rizhao Power and Shandong Power directly holds 56% interests in Rizhao Power. Thus, the Group holds 88.8% interests in Rizhao Power.
Jiaxiang Power, Qufu Co-generation, Jining Co-generation are wholly-owned subsidiaries of Ruyi Coal Power. The Group indirectly holds 40% interests in Ruyi Coal Power, Jiaxiang Power, Qufu Co-generation and Jining Co-generation.
In according to the voting in concert agreement entered into among the Shandong Power and other equity holders of Laiwu Power, Ruyi Coal Power, Rongcheng New Energy, Liaocheng Co-generation, the other equity holders agreed to vote the same in respect of significant financial and operating decisions made by the Shandong Power. As a result, the Group has control over these companies.
9 | Investments in subsidiaries (continued) |
Note: (continued) According to the voting in concert agreement entered into between Hong Kong Investment and the other shareholder in December 2019, the other shareholder agreed to vote the same in respect of significant financial and operating decisions made by Hong Kong Investment. As a result, the Group has control over Hong Kong Energy and its subsidiaries including Huatai Power and Ruyi Pakistan Energy since 31 December 2019.
| (v) | According to the investment cooperation agreement between the Company and another shareholder, Ruzhou Clean Energy has an executive director appointed by the Company. At the same time, the shareholder agreed to withdraw from Ruzhou Clean Energy in compliance with the law within 3 months upon the completion of the project. Therefore, the Company has control over Shidongkou Power Company.Ruzhou Clean Energy. |
| (ii)(vi) | According to the investment cooperation agreement and articles of association signed by Jilin Power and another shareholder, the shareholder enjoys fixed operating income and waives all management rights within a certain operating period. Therefore, the Company has control over Zhenlai Photovoltaic Power. |
| (vii) | 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.Co-generation. Thus, the Company has majority voting rights required by the article of association to control the operation and financial policies of Beijing Cogeneration.Co-generation. Accordingly, the Company has control over Beijing Cogeneration.Co-generation. |
| (iii)(viii) | According to the voting in concert agreement entered into between the Company and one shareholder with 10% equity interests in 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)(ix) | 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. |
| (vii)(x) | In 2016, the Company 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 other shareholder with 49% equity interests in Shanxi Xiaoyi Energy who 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 Shanxi Xiaoyi Energy since February 2017. |
| (xi) | In 2019, the Group’s equity interest in Ruijin Power Generation decreased from 100% to 50% due to capital injection from a third party shareholder. On 28 December 2019, the Group entered into a voting in concert agreement with the other shareholder,the other shareholder agreed to vote the same in respect of significant financial and operating decisions. As a result, the Group still has control over Ruijin Power Generation.
|
| (xii) | These companies are subsidiaries of Shanxi Comprehensive Energy. The Group holds 100% interests in Shanxi Comprehensive Energy. Thus, the Group indirectly holds equity interests in these companies through their parent company. |
Xvheng New Energy, a wholly-owned subsidiary of Shanxi Comprehensive Energy which was acquired from a third party, holds 49% equity interests in Yingheng Clean Energy. The aforesaid third party holds the remaining 51%equity interests in Yingheng Clean Energy. Pursuant to the cooperation agreement entered into between Shanxi Comprehensive Energy and the aforesaid third party, the third party will not pay any share capital to Yingheng Clean Energy and thus will neither enjoy any shareholder rights nor bear any shareholder obligations in Yingheng Clean Energy. As a result, the Group has control over Yingheng Clean Energy
For the information of material non-controlling interests (“NCI”), please refer to Note 40.42.
10 | Available-for-sale financial assetsOther equity instrument investments |
Available-for-sale financial assets include the following:
| | As at 31 December | | | | | | | | | | 2016 | | | 2015 | | | 31 December 2019 | | | 31 December 2018 | | 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 Shanxi Xishan Jinxing Energy Co., Ltd. | | | 531,274 | | | | 531,274 | | | Equity securities designated at FVOCI (non-recycling) | | | | | | | | Listed security | | | | 8,390 | | | | 8,558 | | Unlisted securities | | | | | | | | 10% of Shanxi Xishan Jinxing Energy Co., Ltd. (“JinXing”) | | | - | | | 1,085,462 | | 9.09% of Ganlong Double-track Railway Co., Ltd. | | | 1,000,000 | | | | 1,000,000 | | | 678,565 | | | 924,453 | | Others | | | 54,045 | | | | 54,079 | | | | 92,263 | | | | 64,946 | | Subtotal | | | 1,585,319 | | | | 1,585,353 | | | | 770,828 | | | | 2,074,861 | | | | | | | | | | | | Total | | | 3,406,032 | | | | 5,077,863 | | | | 779,218 | | | | 2,083,419 | |
ThereThe above equity investments were no impairment provisions provided on available-for-sale financial assetsirrevocably designated at fair value through other comprehensive income as the Group considers these investments to be strategic in 2016, 2015 and 2014.nature.
In 2016,August 2019, the Company disposed 113.78Group sold its equity interest in Jinxing to a third party. The fair value on the date of sale was RMB1,250 million shares of Yangtze Power with cash consideration of RMB1.474 billion received and recognized investment income of RMB933 million. Otherthe accumulated fair value gain recognised in other comprehensive income of RMB742RMB502 million was reclassifiedtransferred to profit or loss.retained earnings.
The movements in the carrying amount of land use rights during the years are as follows:
| | 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 | |
| | 2018 | | | | | | Beginning of the year | | | | Cost | | | 13,775,976 | | Accumulated amortisation | | | (2,128,752 | ) | Accumulated impairment losses | | | (382,439 | ) | | | | | | Net book value | | | 11,264,785 | | | | | | | Movement: | | | | | Business combination | | | 398,591 | | Addition | | | 260,971 | | Amortisation charge for the year | | | (368,025 | ) | Reclassification to assets held for sale | | | (29,924 | ) | Disposals | | | (81,788 | ) | Disposal of subsidiaries | | | - | | Currency translation differences | | | 5,424 | | | | | | | End of the year | | | 11,450,034 | | | | | | | Cost | | | 14,324,288 | | Accumulated amortisation | | | (2,486,181 | ) | Accumulated impairment losses | | | (388,073 | ) | | | | | | Net book value | | | 11,450,034 | |
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 subsidiariesGroup will renew the leases according to the operation requirements of the Company and its subsidiariesGroup and the related regulations of the respective countries.
Upon the adoption of IFRS 16 on 1 January 2019, land use rights were reclassified to “right -of-use assets”. Please refer to note 43 for details of right-of-use assets.
Land use rights without ownership certificatecertificates
As at 31 December 2016,2019, the Company and its subsidiariesGroup were in the process of applying for the ownership certificatecertificates for certain land use rightrights (which were reclassified and recognized as right-of-use assets upon the adoption of IFRS 16 on 1 January 2019) with an aggregate net book value of RMB792RMB350 million (2015: RMB960(2018: RMB543 million). The management areManagement is of the opinion that the Company and its subsidiaries areGroup is entitled to the lawful and valid occupation and use of the above mentionedabovementioned land.
There has been no litigations, claims or assessments against the Group for compensation with respect to the use of these buildings as at the date of approval of these financial statements.
12
| Power generation licenselicenses
|
The movements in the carrying amount of power generation licenselicences during the years are as follows:
| | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Beginning of the year | | | 3,679,175 | | | | 3,720,959 | | | | 4,014,972 | | | | 3,916,246 | | | | | | | | | | | | | | | | | Movement: | | | | | | | | | | | | | | | Currency translation differences | | | 170,024 | | | | (41,784 | ) | | | 134,496 | | | | 98,726 | | | | | | | | | | | | | | | | | End of the year | | | 3,849,199 | | | | 3,679,175 | | | | 4,149,468 | | | | 4,014,972 | |
The Company and its subsidiariesGroup acquired the power generation licenselicence in connection with the acquisition of Tuas Power. The power generation licenselicence was initially recognizedrecognised at fair value at the acquisition date. Tuas Power operates power plants in Singapore pursuant to the licenselicence granted by the Energy Market Authority for a period of 30 years from 2003 until 2032. The licenselicence was extended to 2044 during 2011 with minimal costs and is subject to further renewal. The Company and its subsidiariesGroup expect that the applicable rules and regulations surrounding the renewal can be complied with based on the current market framework. The Company and its subsidiariesGroup assessed the useful life of the power generation licenselicence at 31 December 20162019 as indefinite and therefore the licenselicence is not amortized.amortised.
Impairment test of power generation licenselicence
Power generation licenselicence 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. There is no impairment provided for the power generation licence for the year ended 31 December 2019 (2018: Nil).
Key assumptions used for value-in-use calculation:calculations:
Management has assessed that one of the most sensitive key assumptions is the pre-tax discount rate which was arrived at based on weighted average cost of capital. The pre-tax discount rate applied in determining the recoverable amounts of the CGU was 7.54%7.33% (31 December 2015: 7.62%2018: 8.02%). An absolute increase in the pre-tax discount rate of 0.5% (31 December 2015:2018: 0.5%) would result in approximately RMB1,899RMB1,706 million (31 December 2015: RMB1,7042018: RMB1,715 million) decrease in the recoverable amount of the CGU.
Other key assumptions include projection of its business performance based on estimation of gross margin from electricity sold, sales volume of electricity sold 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 forecasts included in industry reports. On average, the growth rates of 3.0%2.0% was 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%2.0%.
Based on the assessments, no impairment was provided for the power generation license.
The movements in the carrying amount of mining rights during the years are as follow:
| | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Beginning of the year | | | | | | | | | | | | | Cost | | | 2,406,567 | | | | 1,922,655 | | | 2,406,567 | | | 2,406,567 | | Accumulated impairment losses | | | (760,296 | ) | | | - | | | | (895,381 | ) | | | (760,296 | ) | | | | | | | | | Net book value | | | 1,646,271 | | | | 1,922,655 | | | | 1,511,186 | | | | 1,646,271 | | | | | | | | | | | | | | | | | Movement: | | | | | | | | | | | | | | | Addition | | | - | | | | 483,912 | | | 66,319 | | | - | | Impairment charge for the year | | | - | | | | (760,296 | ) | | | - | | | | (135,085 | ) | | | | | | | | | | | | | | | | End of the year | | | 1,646,271 | | | | 1,646,271 | | | | 1,577,505 | | | | 1,511,186 | | | | | | | | | | Cost | | | 2,406,567 | | | | 2,406,567 | | | 2,472,886 | | | 2,406,567 | | Accumulated impairment losses | | | (760,296 | ) | | | (760,296 | ) | | | (895,381 | ) | | | (895,381 | ) | | | | | | | | | Net book value | | | 1,646,271 | | | | 1,646,271 | | | | 1,577,505 | | | | 1,511,186 | |
In 2015, due to the decrease of coal market price,2019, No impairment losslosses for mining rights of approximately RMB760 million(2018: RMB135 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%. recognised.
14
| Derivative financial instruments
|
Details of derivative financial instruments are as follows:
| | As at 31 December | | | | | 2016 | | | 2015 | | | As at 31 December | | | | | | | | | | 2019 | | | 2018 | | Derivative financial assets | | | | | | | | | | | | | -Hedging instruments for cash flow hedge (fuel swap contracts) | | | 264,535 | | | | 1 | | | 82,367 | | | 25,629 | | -Hedging instruments for cash flow hedge (exchange forward contracts) | | | 107,907 | | | | 140,977 | | | 4,319 | | | 9,062 | | -Financial instruments at fair value through profit or loss (fuel swap contracts) | | | 4,601 | | | - | | -Financial instruments at fair value through profit or loss (exchange forward swap contracts) | | | | - | | | | 14 | | | | | | | | | | | | | | | | | | Total | | | | 91,287 | | | | 34,705 | | Less: non-current portion | | | | | | | | -Hedging instruments for cash flow hedge (fuel swap contracts) | | | 15,101 | | | 2,543 | | -Hedging instruments for cash flow hedge (exchange forward contracts) | | | | 1,275 | | | | 3,427 | | | | | | | | | | Total non-current portion | | | | 16,376 | | | | 5,970 | | | | | | | | | | | | Current portion | | | | 74,911 | | | | 28,735 | | | | | | | | | | Derivative financial liabilities | | | | | | | | -Hedging instruments for cash flow hedge (fuel swap contracts) | | | 243,045 | | | 357,088 | | -Hedging instruments for cash flow hedge (exchange forward contracts) | | | 42,082 | | | 21,335 | | -Hedging instruments for cash flow hedge (interest rate swap contracts) | | | - | | | | 2,691 | | | 162,594 | | | 149,117 | | -Financial instruments at fair value through profit or loss (fuel swap contracts) | | | 5,881 | | | | 39,894 | | | 2,987 | | | 17,705 | | -Financial instruments at fair value through profit or loss (exchange forward contracts) | | | - | | | | 949 | | | -Financial instruments at fair value through profit or loss (exchange forward swap contracts) | | | | - | | | | 47 | | | | | | | | | | Total | | | 378,323 | | | | 184,512 | | | | 450,708 | | | | 545,292 | | | | | | | | | | | | Less: non-current portion | | | | | | | | | | | | | | | -Hedging instruments for cash flow hedge (fuel swap contracts) | | | 71,341 | | | | - | | | 39,684 | | | 78,587 | | -Hedging instruments for cash flow hedge (exchange forward contracts) | | | 28,380 | | | | 42,353 | | | 13,641 | | | 4,384 | | -Hedging instruments for cash flow hedge (interest rate swap contracts) | | | - | | | | 2,691 | | | 145,590 | | | 144,999 | | -Financial instruments at fair value through profit or loss (fuel swap contracts) | | | | 1,493 | | | | 3,338 | | | | | | | | | | Total non-current portion | | | 99,721 | | | | 45,044 | | | | 200,408 | | | | 231,308 | | | | | | | | | | | | | | | | | | | Current portion | | | 278,602 | | | | 139,468 | | | Total current portion | | | | 250,300 | | | | 313,984 | |
14
| Derivative financial instruments (Continued)(continued)
|
| | As at 31 December | | | | 2016 | | | 2015 | | | | | | | | | Derivative financial liabilities | | | | | | | -Hedging instruments for cash flow hedge (fuel swap contracts) | | | 164,464 | | | | 1,157,677 | | -Hedging instruments for cash flow hedge (exchange forward contracts) | | | 454 | | | | 2,297 | | -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) | | | 619 | | | | 23,047 | | -Financial instruments at fair value through profit or loss (exchange forward contracts) | | | - | | | | 344 | | Total | | | 334,738 | | | | 1,304,941 | | | | | | | | | | | Less: non-current portion | | | | | | | | | -Hedging instruments for cash flow hedge (fuel swap contracts) | | | 31,673 | | | | 307,573 | | -Hedging instruments for cash flow hedge (exchange forward contracts) | | | 295 | | | | 940 | | -Hedging instruments for cash flow hedge (interest rate swap contracts) | | | 169,201 | | | | 121,576 | | Total non-current portion | | | 201,169 | | | | 430,089 | | | | | | | | | | | Current portion | | | 133,569 | | | | 874,852 | |
For the years ended 31 December 2016, 20152019 and 2014,2018, no material ineffective portion was recognizedrecognised 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 2016 was US$208 million (RMB equivalents of RMB1,443 million) (2015: US$240 million (RMB equivalents of RMB1,558 million)). Through this arrangement, the Company pays an annual fixed interest of 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 exchangeforeign currency forward contracts to hedge its foreign exchange risk arising from highly probablewhich are designated as hedging instruments in cash flow hedges of forecast purchase transactions.in USD. 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. TPSTMWR also uses various interest rate swap contracts to hedge floating quarterly interest payments on borrowings with maturity dates up to 2044. The notional principal amount of these outstanding interest rate swap contracts at 31 December 20162019 was S$1,359929 million (RMB equivalents of RMB6,522RMB4,086 million) (2015:(2018: S$1,400992 million (RMB equivalents of RMB6,422RMB4,968 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. TPSTMWR swaps original floating interest (3-month SOR) to annual fixed interest determined by individual swap contracts. Such swap contracts are settled quarterly from September 2019 to June 2044. As at 31 December 2016,2019, these interest rate swap contracts are carried on the consolidated statementsstatement of financial position as financial liability of RMB99RMB163 million (2015: financial asset of RMB2.69 million and(2018: financial liability of RMB41.12RMB145 million).
There is an economic relationship between the hedged items and the hedging instruments as the terms of the exchange forward contracts, fuel swap contracts and interest rate swap contracts that match the terms of the expected highly probable forecast transactions and borrowings (i.e., notional amount and expected payment date). The Group has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the exchange forward, fuel swaps and interest rate swaps are identical to the hedged risk components. To test the hedge effectiveness, the Group uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks.
The hedge ineffectiveness can arise from:
| (a) | Differences in the timing of the cash flows of the hedged items and the hedging instruments. |
| (b) | Different indexes (and accordingly different curves) linked to the hedged risk of the hedged items and hedging instruments. |
| (c) | The counterparties’ credit risk differently impacting the fair value movements of the hedging instruments and hedged items. |
| (d) | Changes to the forecasted amount of cash flows of hedged items and hedging instruments. |
14
| Derivative financial instruments (Continued)(continued)
|
The analysis of contractual cash inflows/(outflows) of major derivative financial instruments are as follows:
| | | | | Cash flows | | | | | | Maturity | | | | | | | | | | 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 2016 | | | | | | | | | | | | | | | | | As at 31 December 2019 | | | | | | | | | | | | | | | | | Derivative financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fuel derivatives used for hedging (net settlement) | | | 264,535 | | | | 264,535 | | | | 193,194 | | | | 71,341 | | | | - | | | | 82,367 | | | | 82,367 | | | | 67,266 | | | | 15,101 | | | | - | | | | | | | | | | | | | | | | | | | Forward exchange contracts used for hedging | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | - inflows | | | | | | | 2,118,946 | | | | 1,488,071 | | | | 630,875 | | | | - | | |
| | | 697,057 | | | 585,340 | | | 111,717 | | | - | | - outflows | | | | | | | (2,009,205 | ) | | | (1,407,606 | ) | | | (601,599 | ) | | | - | | | |
| | | | (691,081 | ) | | | (581,248 | ) | | | (109,833 | ) | | | - | | | | | 107,907 | | | | 109,741 | | | | 80,465 | | | | 29,276 | | | | - | | | | | | | | | | | | | | | | | | | | | 4,319 | | | | 5,976 | | | | 4,092 | | | | 1,884 | | | | - | | | | | | | | | | | | | | | | | | | Fuel derivatives that do not qualify as hedges (net settlement) | | | 5,881 | | | | 5,881 | | | | 5,881 | | | | - | | | | - | | | | 4,601 | | | | 4,601 | | | | 4,601 | | | | - | | | | - | | | | | | | | | | | | | | | | | | | Derivative financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fuel derivatives used for hedging (net settlement) | | | 164,464 | | | | (164,464 | ) | | | (132,792 | ) | | | (31,672 | ) | | | - | | | | 243,045 | | | | (243,045 | ) | | | (203,362 | ) | | | (39,683 | ) | | | - | | | | | | | | | | | | | | | | | | | Forward exchange contracts used for hedging | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | - inflows | | | | | | | 527,939 | | | | 475,881 | | | | 52,058 | | | | - | | |
| | | 2,702,992 | | | 2,042,062 | | | 660,930 | | | - | | - outflows | | | | | | | (528,454 | ) | | | (476,104 | ) | | | (52,350 | ) | | | - | | | |
| | | | (2,738,635 | ) | | | (2,067,617 | ) | | | (671,018 | ) | | | - | | | | | 454 | | | | (515 | ) | | | (223 | ) | | | (292 | ) | | | - | | | | 42,082 | | | | (35,643 | ) | | | (25,555 | ) | | | (10,088 | ) | | | - | | Net-settled interest rate swaps used for hedging | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | - net cash inflows/(outflows) | | | 169,201 | | | | (228,905 | ) | | | (113,563 | ) | | | (115,342 | ) | | | - | | | | 162,594 | | | | (188,162 | ) | | | (33,497 | ) | | | (48,412 | ) | | | (106,253 | ) | | | | | | | | | | | | | | | | | | Fuel derivatives that do not qualify as hedges (net settlement) | | | 619 | | | | (619 | ) | | | (619 | ) | | | - | | | | - | | | | 2,987 | | | | (2,987 | ) | | | (1,493 | ) | | | (1,494 | ) | | | - | | As at 31 December 2015 | | | | | | | | | | | | | | | | | | | | | | Derivative financial assets | | | | | | | | | | | | | | | | | | | | | | Fuel derivatives used for hedging (net settlement) | | | 1 | | | | 1 | | | | 1 | | | | - | | | | - | | | Forward exchange contracts used for hedging | | | | | | | | | | | | | | | | | | | | | | - inflows | | | | | | | 2,223,114 | | | | 1,604,161 | | | | 618,953 | | | | - | | | - outflows | | | | | | | (2,093,389 | ) | | | (1,510,919 | ) | | | (582,470 | ) | | | - | | | | | | 140,977 | | | | 129,725 | | | | 93,242 | | | | 36,483 | | | | - | | | | | | | | | | | | | | | | | 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) | | | 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) | | | 1,157,677 | | | | (1,157,677 | ) | | | (850,104 | ) | | | (307,573 | ) | | | - | | | Forward exchange contracts used for hedging | | | | | | | | | | | | | | | | | | | | | | - inflows | | | | | | | 539,730 | | | | 429,306 | | | | 110,424 | | | | - | | | - outflows | | | | | | | (544,985 | ) | | | (432,193 | ) | | | (112,792 | ) | | | - | | | | | | 2,297 | | | | (5,255 | ) | | | (2,887 | ) | | | (2,368 | ) | | | - | | | Net-settled interest rate swaps used for hedging | | | | | | | | | | | | | | | | | | | | | | - net cash inflows/(outflows) | | | 121,576 | | | | (190,867 | ) | | | (84,753 | ) | | | (106,114 | ) | | | - | | | Fuel derivatives that do not qualify as hedges (net settlement) | | | 23,047 | | | | (23,047 | ) | | | (23,047 | ) | | | - | | | | - | | | Foreign exchange contracts that do not qualify as hedges(net settlement) | | | 344 | | | | (413 | ) | | | (413 | ) | | | - | | | | - | | | Forward exchange contracts that do not qualify as hedges (net settlement) | | | | - | | | | - | | | | - | | | | - | | | | - | |
14
| Derivative financial instruments (continued)
|
| | Cash flows | | | | Carrying amounts | | | Contractual cash flows | | | Within 1 year | | | Between 1 and 5 years | | | After 5 years | | | | | | | | | | | | | | | | | | As at 31 December 2018 | | | | | | | | | | | | | | | | Derivative financial assets | | | | | | | | | | | | | | | | Fuel derivatives used for hedging (net settlement) | | | 25,629 | | | | 25,629 | | | | 23,086 | | | | 2,543 | | | | - | | | | | | | | | | | | | | | | | | | | | | | Forward exchange contracts used for hedging | | | | | | | | | | | | | | | | | | | | | - inflows | | |
| | | | 744,936 | | | | 534,355 | | | | 210,581 | | | | - | | - outflows | | |
| | | | (730,691 | ) | | | (526,988 | ) | | | (203,703 | ) | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | 9,062 | | | | 14,245 | | | | 7,367 | | | | 6,878 | | | | - | | | | | | | | | | | | | | | | | | | | | | | Forward exchange contracts that do not qualify as hedges (net settlement) | | | 14 | | | | 12 | | | | 12 | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | | | Derivative financial liabilities | | | | | | | | | | | | | | | | | | | | | Fuel derivatives used for hedging (net settlement) | | | 357,088 | | | | (357,088 | ) | | | (278,501 | ) | | | (78,587 | ) | | | - | | | | | | | | | | | | | | | | | | | | | | | Forward exchange contracts used for hedging | | | | | | | | | | | | | | | | | | | | | - inflows | | |
| | | | 2,425,238 | | | | 2,059,061 | | | | 366,177 | | | | - | | - outflows | | |
| | | | (2,433,994 | ) | | | (2,069,218 | ) | | | (364,776 | ) | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | 21,335 | | | | (8,756 | ) | | | (10,157 | ) | | | 1,401 | | | | - | | Net-settled interest rate swaps used for hedging | | | | | | | | | | | | | | | | | | | | | - net cash inflows/(outflows) | | | 149,117 | | | | (151,975 | ) | | | (37,769 | ) | | | (47,562 | ) | | | (66,644 | ) | | | | | | | | | | | | | | | | | | | | | | Fuel derivatives that do not qualify as hedges (net settlement) | | | 17,705 | | | | (17,705 | ) | | | (14,366 | ) | | | (3,339 | ) | | | - | | | | | | | | | | | | | | | | | | | | | | | Forward exchange contracts that do not qualify as hedges (net settlement) | | | 47 | | | | (32 | ) | | | (32 | ) | | | - | | | | - | |
The movements 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 | |
| | 2019 | | | 2018 | | | | | | | | | Beginning of the year | | | | | | | | | | | | | | Cost | | | 18,941,078 | | | | 18,435,954 | | Accumulated impairment losses | | | (3,368,851 | ) | | | (2,951,834 | ) | | | | | | | | | | Net book value | | | 15,572,227 | | | | 15,484,120 | | | | | | | | | | | Movement: | | | | | | | | | Business combination | | | - | | | | 231,218 | | Impairment charge for the year | | | - | | | | (409,371 | ) | Disposal of subsidiary - cost | | | (21,723 | ) | | | - | | Disposal of subsidiary - impairment | | | 21,723 | | | | - | | Currency translation differences - cost | | | 373,142 | | | | 273,906 | | Currency translation differences - impairment | | | (10,414 | ) | | | (7,646 | ) | | | | | | | | | | End of the year | | | 15,934,955 | | | | 15,572,227 | | | | | | | | | | | Cost | | | 19,292,497 | | | | 18,941,078 | | Accumulated impairment losses | | | (3,357,542 | ) | | | (3,368,851 | ) | | | | | | | | | | Net book value | | | 15,934,955 | | | | 15,572,227 | |
Impairment tests for goodwill
Goodwill is allocated to the CGUs of the Company and its subsidiaries.
Group. The carrying amounts of major goodwill allocated to individual CGUs are as follows:
| | 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 | |
| | 2019 | | | 2018 | | | | | | | | | PRC power segment: | | | | | | | Yunhe Power | | | 700,346 | | | | 700,346 | | Linyi Power | | | 541,307 | | | | 541,307 | | Wuhan Power | | | 518,484 | | | | 518,484 | | Liaocheng Co-generation | | | 339,361 | | | | 339,361 | | | | | | | | | | | Overseas segment: | | | | | | | | | Tuas Power | | | 11,190,944 | | | | 10,828,216 | |
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 CompanyGroup expects cash flows beyond such periods will be similar to that of the respective final forecast years on existing production capacity.capacity and thus a zero terminal growth rate is utilized in the forecasts.
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 and various factors, such as inflation, power demand and other factors as well asfinancial budgets covering a period of no more than 5 years utilizing the terminal value.key assumptions disclosed below. On average, the growth rates of 3.0%2.0% was 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 terminal growth rate of 2.0%. There is no impairment provided for the goodwill for the year ended 31 December 2019.
DiscountPre-tax discount rates used for value-in-use calculations:
Yunhe Power | PRC | | 9.22 | % | Linyi Power segment | 7.60%~11.32% | | 9.23 | % | Wuhan Power | | | 9.21 | % | Liaocheng Co-generation | | | 9.18 | % | Tuas Power | | | 7.33 | % |
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 locatedfuture sales volume, fuel prices, gross margin and fuel cost.terminal growth rate. Management determined these key assumptions based on past performance and its expectations on market development. The pre-tax discount ratesrate 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.
For the goodwill allocated to CGUs in the PRC, changes of assumptions in future sales volume and fuel price could have affected the results of goodwill impairment assessment. As at 31 December 2019, if future sales volume had decreased by 1% or 5% from management’s estimates, while other variables stay constant with the expectations, the Group would have to further recognise impairment against goodwill by approximately RMB322 million and RMB2,930 million, respectively. If fuel price had increased by 1% or 5% from management’s estimates, while other variables stay constant with the expectations, the Group would have to further recognise impairment against goodwill by approximately RMB170 million and RMB1,829 million, respectively. Please refer to Note 4 and 12 for details of respective sensitivity analysis on domestic andof oversea CGU impairment testing.
In 2016,2019 and 2018, the increase of goodwill in respect of Tuas Power was due to currency translation differences.
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 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.
16 | Other non-current assets |
Details of other non-current assets are as follows:
| | As at 31 December | | | | 2016 | | | 2015 | | | | | | | | | Intangible assets * | | | 411,308 | | | | 451,176 | | Deferred employee housing subsidies | | | 3,041 | | | | 3,907 | | Prepayments for switchhouse and metering station | | | 8,877 | | | | 9,257 | | Prepaid connection fees | | | 108,365 | | | | 111,513 | | Prepaid territorial water use right ** | | | 777,994 | | | | 763,905 | | Finance lease receivables | | | 563,099 | | | | 552,401 | | VAT recoverable | | | 1,651,891 | | | | 1,618,894 | | Others | | | 797,370 | | | | 867,944 | | Total | | | 4,321,945 | | | | 4,378,997 | |
| | As at 31 December | | | | 2019 | | | 2018 | | Finance lease receivables (i) | | | 10,519,845 | | | | 10,811,603 | | VAT recoverable | | | 4,172,871 | | | | 3,282,075 | | Prepayments for pre-construction cost | | | 788,081 | | | | 987,469 | | Intangible assets (ii) | | | 784,594 | | | | 698,541 | | Profit compensation from Huaneng Group (iii) | | | - | | | | 440,551 | | Prepayments for capacity quota (iv) | | | - | | | | 303,399 | | Prepaid connection fees | | | 37,484 | | | | 113,587 | | Contract assets | | | 642,557 | | | | 92,995 | | Others | | | 1,659,573 | | | | 2,605,839 | | | | | | | | | | | Total | | | 18,605,005 | | | | 19,336,059 | |
| *(i) | Ruyi Pakistan Energy entered into a power purchase agreement with CPPA-G to sell all of the electricity produced with a regulated tariff mechanism approved by the National Electric Power Regulatory Authority. In accordance with the power purchase agreement and tariff mechanism, almost all the risks and rewards in relation to the power assets were in substance transferred to CPPA-G and therefore were accounted for as a finance lease to CPPA-G. Please refer to note 43 for other details of finance lease receivables. |
| (ii) | The intangible assets primarily consist of software, patented technologies and etc. In 2016,2019, there iswas no impairment provided for the intangible assets (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 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 RMB78.38 million was secured to a bank as collateral against a long-term loan of RMB18 million)(2018: Nil). |
| (iii) | The Company acquired several subsidiaries including Shandong Power from Huaneng Group which was completed on 1 January 2017. According to the profit compensation agreement associated with the acquisition, Huaneng Group should compensate the Company in cash based on the shortfall of accumulated actual net profit compared with the accumulated forecast net profit of certain subsidiaries of Shandong Power during the compensation period from year 2017 to 2019. As at 31 December 2019, the fair value of the abovementioned contingent consideration from Huaneng Group amounting to RMB458 million was recognised (31 December 2018: RMB991 million), which was recorded in other receivables and assets. The profit compensation is solely related to year 2019. |
| (iv) | This represents a capacity quota purchased by a subsidiary of the Group to build a co-generation project in prior years. Management assessed it could not be utilised in the foreseeable future according to the change of the current market condition and therefore provided full impairment of the prepayments of RMB303 million in the current period. |
Inventories comprised:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Fuel (coal and oil) for power generation | | | 5,391,068 | | | | 3,997,910 | | | 7,304,783 | | | 8,150,398 | | Material and supplies | | | 1,655,357 | | | | 1,587,211 | | | 1,765,827 | | | 1,824,000 | | | | | 7,046,425 | | | | 5,585,121 | | | | | | | | | | | 9,070,610 | | | 9,974,398 | | Less: provision for inventory obsolescence | | | 167,282 | | | | 162,389 | | | | 187,427 | | | | 430,707 | | | | | | | | | | Total | | | 6,879,143 | | | | 5,422,732 | | | | 8,883,183 | | | | 9,543,691 | |
Movements of provision for inventory obsolescence during the years are analyzed as follows:
| | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | | | | Beginning of the year | | | (162,389 | ) | | | (163,458 | ) | | | (170,296 | ) | | (430,707 | ) | | (168,875 | ) | Provision | | | (1,134 | ) | | | (2,867 | ) | | | (878 | ) | | Provision* | | | (23,507 | ) | | (255,181 | ) | Reversal | | | 1,390 | | | | 1,039 | | | | 3,525 | | | 1,054 | | | 1,365 | | Write-offs | | | - | | | | - | | | | 632 | | | Write off* | | | 272,659 | | | - | | Currency translation differences | | | (5,149 | ) | | | 2,897 | | | | 3,559 | | | | (6,926 | ) | | | (8,016 | ) | | | | | | | | | End of the year | | | (167,282 | ) | | | (162,389 | ) | | | (163,458 | ) | | | (187,427 | ) | | | (430,707 | ) |
| * | In 2018, approximately RMB255 million provision was provided for the fuel oil, which was recognised based on the net realisable value. In 2019, approximately RMB254 million provision was written-off for the fuel oil sold which was included in the inventory provision balance in 2018. |
18 | Other receivables and assets |
Other receivables and assets comprised the following: | | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Prepayments for inventories | | | 252,389 | | | | 143,446 | | | 758,834 | | | 990,742 | | Prepayments for pre-construction cost | | | 885,051 | | | | 735,975 | | | Prepaid income tax | | | 141,423 | | | | 2,393 | | | 139,617 | | | 134,477 | | Prepayments for capacity quota | | | 303,399 | | | | 303,399 | | | Others | | | 121,810 | | | | 102,854 | | | | 266,252 | | | | 270,330 | | Total prepayments | | | 1,704,072 | | | | 1,288,067 | | | Staff advances | | | 11,939 | | | | 15,692 | | | | | | | | | | | Subtotal of prepayments | | | | 1,164,703 | | | | 1,395,549 | | | | | | | | | | Less: Loss allowance | | | | 2,638 | | | | 4,638 | | | | | | | | | | Total prepayments, net | | | | 1,162,065 | | | | 1,390,911 | | | | | | | | | | Dividends receivable | | | 861,408 | | | | 305,000 | | | - | | | 30,000 | | Financial lease receivables | | | 21,247 | | | | 19,419 | | | Interest receivables | | | 112 | | | | 175 | | | Receivables from sales of fuel | | | 99,649 | | | 74,578 | | Others (Note i) | | | | 2,077,156 | | | | 1,569,181 | | Subtotal of other receivables | | | | 2,176,805 | | | | 1,673,759 | | | | | | | | | | Less: Loss allowance | | | | 52,531 | | | | 38,531 | | | | | | | | | | Total other receivables, net | | | | 2,124,274 | | | | 1,635,228 | | | | | | | | | | Profit compensation from Huaneng Group (Note 16) | | | 457,727 | | | 550,832 | | VAT recoverable | | | 1,773,396 | | | 1,927,638 | | Finance lease receivables (Note 43) | | | 483,691 | | | 871,302 | | Designated loan to a joint venture | | | 80,000 | | | 80,000 | | Others | | | 874,998 | | | | 728,781 | | | | 136,610 | | | | - | | Subtotal other receivables | | | 1,769,704 | | | | 1,069,067 | | | Less: provision for doubtful accounts | | | 28,961 | | | | 27,957 | | | Total other receivables, net | | | 1,740,743 | | | | 1,041,110 | | | VAT recoverable | | | 2,008,955 | | | | 1,678,812 | | | Designated loan to a joint venture | | | 80,000 | | | | 80,000 | | | | | | | | | | | Gross total | | | 5,562,731 | | | | 4,115,946 | | | | 6,272,932 | | | | 6,499,080 | | | | | | | | | | Net total | | | 5,533,770 | | | | 4,087,989 | | | | 6,217,763 | | | | 6,455,911 | |
Please refer to Note 3537 for details of other receivables and assets due from the related parties. The Group does not hold any collateral or other credit enhancements over its other receivables. The other receivables are non-interest-bearing.
18 | Other receivables and assets (continued) |
The gross amounts of other receivables are denominated in the following currencies:
| | As at 31 December | | | | 2016 | | | 2015 | | | | | | | | | RMB | | | 1,635,051 | | | | 1,005,399 | | S$ (RMB equivalent) | | | 95,816 | | | | 60,596 | | US$ (RMB equivalent) | | | 38,837 | | | | 3,072 | | Total | | | 1,769,704 | | | | 1,069,067 | |
18 | Other receivables and assets (Continued) |
| | As at 31 December | | | | 2019 | | | 2018 | | | | | | | | | RMB | | | 1,943,568 | | | | 1,572,651 | | S$ (RMB equivalent) | | | 86,422 | | | | 68,390 | | US$ (RMB equivalent) | | | 11,898 | | | | 7,401 | | PKR (RMB equivalent) | | | 134,917 | | | | 25,317 | | | | | | | | | | | Total | | | 2,176,805 | | | | 1,673,759 | |
Movements of provision for doubtful accountsloss allowance during the years are analyzed as follows:
| | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | | | | Beginning of the year | | | (27,957 | ) | | | (29,644 | ) | | | (30,673 | ) | | (43,169 | ) | | (33,879 | ) | Provision | | | (1,011 | ) | | | (9 | ) | | | - | | | (25,578 | ) | | (24,924 | ) | Reversal/Write-off | | | 7 | | | | 1,696 | | | | 1,029 | | | Reversal/write-off | | | | 13,578 | | | | 15,634 | | | | | | | | | | End of the year | | | (28,961 | ) | | | (27,957 | ) | | | (29,644 | ) | | | (55,169 | ) | | | (43,169 | ) |
As at 31 December 2016, there was no indication of impairment relating to other receivables which were not past due and no material provision was made (2015: nil).Note i: |
| Included in others, there were advances amounting to RMB232 million as at 31 December 2019 (31 December 2018: RMB273 million) which were due from Huangtai #8 Power Plant with indefinite repayment terms. For the year ended 31 December 2019, Huaneng Jinan Huangtai Power Limited Company (“Huangtai Power”), a subsidiary of the Company, received total repayments amounting to RMB41 million (for the year ended 31 December 2018: RMB60 million)
According to the property right transfer agreement signed in December 2008 between Shandong Power and Shandong Luneng Development Group (“Shandong Luneng”) and the corresponding approval from the State-owned Assets Supervision and Administration Commission of the State Council in February 2009 (“State-owned Assets Right [2009] No.70”), Shandong Power acquired 30% of property right of Huangtai #8 Power Plant from Shandong Luneng at a cash consideration of RMB110 million. Huangtai #8 Power Plant is not a legal entity under PRC Company Law, though it has separate accounting books, and therefore the Group recognised the 30% property right as other non-current assets. Huangtai Power is in charge of daily operations of Huangtai #8 Power Plant on behalf of two property owners. |
As at 31 December 2016, other receivables of RMB113 million (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 | | | | 2016 | | | 2015 | | | | | | | | | Within 1 year | | | 42,103 | | | | 98,649 | | Between 1 to 2 years | | | 2,683 | | | | 1,259 | | Between 2 to 3 years | | | 847 | | | | 780 | | Over 3 years | | | 67,476 | | | | 66,968 | | Total | | | 113,109 | | | | 167,656 | |
As at 31 December 2016, other receivables of RMB36 million which were past due (2015: RMB35 million) were impaired and a provision of RMB29 million (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 | | | | 2016 | | | 2015 | | | | | | | | | Within 1 year | | | 752 | | | | 1,566 | | Between 1 to 2 years | | | 912 | | | | 93 | | Between 2 to 3 years | | | 285 | | | | 3 | | Over 3 years | | | 34,263 | | | | 33,792 | | Total | | | 36,212 | | | | 35,454 | |
Accounts receivable comprised the following:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Accounts receivable | | | 14,050,096 | | | | 14,401,665 | | | 26,911,837 | | | 24,804,671 | | Notes receivable | | | 2,432,264 | | | | 1,977,790 | | | | 5,552,422 | | | | 4,621,180 | | | | | 16,482,360 | | | | 16,379,455 | | | | | | | | Less: provision for doubtful accounts | | | 88,889 | | | | 2,054 | | | | | | | 32,464,259 | | | | 29,425,851 | | | | | | | | | | Less: Loss allowance | | | | 195,320 | | | | 146,913 | | | | | | | | | | Total | | | 16,393,471 | | | | 16,377,401 | | | | 32,268,939 | | | | 29,278,938 | | | | | | | | | | Analysed into: | | | | | | | | Accounts receivable | | | | | | | | - At amortised cost | | | 25,547,258 | | | 24,804,671 | | - At fair value through other comprehensive income | | | | 1,364,579 | | | | - | | | | | | | | | | Notes receivable | | | | | | | | - At amortised cost | | | | 5,552,422 | | | | 4,621,180 | |
In 2019, the Group entered into several accounts receivable factoring arrangements (the “Factoring Arrangements”) and transferred certain accounts receivable, with the carrying amount of RMB150 million, to the banks. Under the Factoring Arrangements, the Group is not exposed to default risks of the accounts receivable after the transfer. Subsequent to the transfer, the Group did not retain any rights on the use of the accounts receivable, including the sale, transfer or pledge of the accounts receivable to any other third parties. The original carrying value of the accounts receivable transferred under the arrangement that have not been settled as at 31 December 2019 was RMB150 million (2018: Nil).
In December 2019, the Group's subsidiary Shandong Power entered into an agreement of a single assets management plan (the “Assets Management Plan”) with Yingda Securities Co., Ltd. (“Yingda”), with an aggregate amount of RMB1,000,000,000 of accounts receivable purchased from Shandong Power through the asset management plan established by Yingda. Under the Assets Management Plan, the Group is not exposed to default risks of the accounts receivable after the transfer. Subsequent to the transfer, the Group did not retain any rights on the use of the accounts receivable, including the sale, transfer or pledge of the accounts receivable to any other third parties. The original carrying value of the accounts receivable transferred under the arrangement that have not been settled as at 31 December 2019 was RMB1,000,000,000.
During the year ended 31 December 2019, the Group recognised RMB 10,528 thousand loss on the date of transfer of the accounts receivable.
19 | Accounts receivable (continued) |
The gross amounts of account receivablesaccounts receivable are denominated in the following currencies:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | RMB | | | 15,586,989 | | | | 15,639,091 | | | 29,382,384 | | | 26,879,470 | | S$ (RMB equivalent) | | | 876,956 | | | | 735,300 | | | 1,077,008 | | | 1,016,299 | | US$ (RMB equivalent) | | | 18,415 | | | | 5,064 | | | 39,146 | | | 6,673 | | PKR (RMB equivalent) | | | | 1,965,721 | | | | 1,523,409 | | | | | | | | | | Total | | | 16,482,360 | | | | 16,379,455 | | | | 32,464,259 | | | | 29,425,851 | |
The Company and its subsidiariesGroup usually grant credit periods of about one month’s credit periodmonth to domestic local power grid customers from the end of the month in which the sales are made, except formade. SinoSing Power which provides credit periodperiods that rangesrange from 5 to 60 days from the dates of billings. Certain accounts receivablesreceivable of Singapore subsidiaries are backed by bankers’ guarantees and/or deposits from customers. It is not practicable to determine the fair value of the collaterals that correspond to these accounts receivable. Ruyi Pakistan Energy entered into the agreement with CPPA-G with a one month credit period.
As at 31 December 2016,2019, no accounts receivable waswere secured to banks as collateral against loans (2015: nil)(2018: Nil). The Group does not hold any collateral or other credit enhancements over its accounts receivable. The accounts receivable are non-interest-bearing.
For the collateral of notes receivable, please refer to Note 2628 for details.
Movements of provision for doubtful accountsloss allowance during the years are analyzed as follows: | | 2019 | | | 2018 | | Beginning of the year | | | (146,913 | ) | | | (112,086 | ) | Provision | | | (64,838 | ) | | | (40,064 | ) | Reversal | | | 16,596 | | | | 4,728 | | Write-off | | | - | | | | 607 | | Currency translation differences | | | (165 | ) | | | (98 | ) | | | | | | | | | | End of the year | | | (195,320 | ) | | | (146,913 | ) |
| | 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 | ) |
Ageing analysis of accounts receivable and notes receivable based on the invoice date was as follows: | | As at 31 December | | | | 2019 | | | 2018 | | Within 1 year | | | 31,566,008 | | | | 28,379,742 | | Between 1 to 2 years | | | 696,401 | | | | 833,358 | | Between 2 to 3 years | | | 57,667 | | | | 29,517 | | Over 3 years | | | 144,183 | | | | 183,234 | | | | | | | | | | | Total | | | 32,464,259 | | | | 29,425,851 | |
As at 31 December 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.
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 2016,2019, the maturity period of the notes receivable ranged from 1 to 12 months (2015:(2018: from 1 to 12 months).
20 | (b) | Ageing analysis of accounts receivable and notes receivable that are neither individually nor collectively considered to be impaired are as follows:Disposal group held for sale |
On 31 July 2018, Shandong Power entered into an acquisition agreement with Taishan Power, a subsidiary of Huaneng Group, to acquire certain equity interest of Laizhou Wind Power. According to the acquisition agreement, part or all of the wind power generators of Laizhou Wind Power could be dismantled upon the requirement of the local government after the completion of the acquisition. In that case, Shandong Power is entitled to request Taishan Power or another third party designated by Taishan Power to repurchase 80% equity interests of Laizhou Wind Power in cash at fair value (no less than the fair value of equity interest of Laizhou Wind Power in the acquisition agreement). | | 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 thatIn December 2018, as part of the wind power generators of Laizhou Wind Power had been dismantled, which is the case in the acquisition agreement, Shandong Power intended to sell 80% equity interests of Laizhou Wind Power back to Taishan Power. The assets and liabilities of Laizhou Wind Power are presented as a disposal group held for sale in the consolidated financial statements.
In 2019, some of the wind turbines were past due butdismantled and a disposal loss of RMB166 million was recorded. In 2019, Shandong Power, Taishan Power and Huaneng Energy & Communications Holdings Co., Ltd.(“Huaneng Energy&Communications”), a subsidiary of Huaneng Group, entered into an agreement, which Taishan Power designates Huaneng Energy & Communication to purchase the 80% of equity interests of Laizhou Wind Power from Shandong Power, at a cash consideration of RMB1.05 million. The disposal of Laizhou Wind Power does not impaired relate toconstitute a numberdiscontinued operation of independent customers that have a good track record with the CompanyGroup.
The transaction was completed on 27 December 2019. At the date of disposal, the carrying values of the net assets of the disposal group are as follows:
| | Date of disposal | | | | RMB’000 | | Property, plant and equipment | | | | and other non-current assets | | | 364,184 | | Land use rights | | | 29,924 | | Other non-current assets | | | 1,752 | | Inventories | | | 3 | | Other receivables and assets | | | 3,006 | | Accounts receivable | | | 44,603 | | Bank balances and cash | | | 28,208 | | Long-term loans | | | 513,200 | | Accounts payable and other liabilities | | | 67,514 | | Taxes payable | | | 2,365 | | Current portion of long-term loans | | | 68,800 | | Non- controlling interest | | | (36,040 | ) | | | | | | Net asset subject to disposal | | | (144,159 | ) | Consideration | | | 1,050 | | Gain on disposal of a subsidiary | | | 145,209 | | Loss on disposal of wind turbines | | | (165,540 | ) | Net impact on disposal | | | (20,331 | ) |
20 | Disposal group held for sale (continued) |
| | RMB’000 | | Satisfied by: | | | | Cash received in 2019 | | | 525 | | Receivable as at 31 December 2019 | | | 525 | | | | | | | Total consideration | | | 1,050 | |
An analysis of the net inflow of cash and its subsidiaries. Based on past experience, management believes that no impairment allowance is necessarycash equivalents in respect of these balancesthe disposal of a subsidiary is as there has not been a significant change in credit quality and the balances are still considered fully recoverable.follows:
| | 2019 | | | | RMB’000 | | | | | | Cash consideration received | | | 525 | | Cash and bank balances disposed of | | | (28,208 | ) | Net inflow of cash and cash equivalents in respect of the disposal of a subsidiary | | | (27,683 | ) |
| | 2016 | | | 2015 | | | | | | | | | | | | | | | | | 2019 | | | 2018 | | | | 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 | | | 10,997,709,919 | | | 10,997,710 | | | 10,500,000,000 | | | 10,500,000 | | Overseas listed foreign shares | | | 4,700,383,440 | | | | 4,700,383 | | | | 3,920,383,440 | | | | 3,920,383 | | | | 4,700,383,440 | | | | 4,700,383 | | | | 4,700,383,440 | | | | 4,700,383 | | | | | | | | | | | | | | | | Subtotal | | | 15,200,383,440 | | | | 15,200,383 | | | | 14,420,383,440 | | | | 14,420,383 | | | | 15,698,093,359 | | | | 15,698,093 | | | | 15,200,383,440 | | | | 15,200,383 | | Issuance of new H shares | | | - | | | | - | | | | 780,000,000 | | | | 780,000 | | | | | | | | | | | | | | | | | Issuance of new A shares | | | - | | | - | | | 497,709,919 | | | 497,710 | | | | | | | | | | | | | | | | As at 31 December | | | | | | | | | | | | | | | | | | | | | | | | | | | | | A shares | | | 10,500,000,000 | | | | 10,500,000 | | | | 10,500,000,000 | | | | 10,500,000 | | | 10,997,709,919 | | | 10,997,710 | | | 10,997,709,919 | | | 10,997,710 | | Overseas listed foreign shares | | | 4,700,383,440 | | | | 4,700,383 | | | | 4,700,383,440 | | | | 4,700,383 | | | | 4,700,383,440 | | | | 4,700,383 | | | | 4,700,383,440 | | | | 4,700,383 | | | | | | | | | | | | | | | | Total | | | 15,200,383,440 | | | | 15,200,383 | | | | 15,200,383,440 | | | | 15,200,383 | | | | 15,698,093,359 | | | | 15,698,093 | | | | 15,698,093,359 | | | | 15,698,093 | |
22 | Other equity instruments |
| (a) | Other equity instruments as at 31 December 2019 |
Type of Instruments | Issuance Date | Category | | Initial Distribution Rate | | | Issue Price | | | Number | | | Par Value | | Initial Period | Conversion Condition | Conversion Result | | | | | | | | RMB ’000 | | | | | | RMB ’000 | | | | | Bond A | September 2017 | Equity Instrument | | | 5.05 | % | | | 0.1 | | | | 25,000,000 | | | | 2,500,000 | | 3 Years | None | None | Bond B | September 2017 | Equity Instrument | | | 5.17 | % | | | 0.1 | | | | 25,000,000 | | | | 2,500,000 | | 5 years | None | None | Yingda Insurance Financing Plan (1st) | September 2018 | Equity Instrument | | | 5.79 | % | | | — | | | | — | | | | 3,283,000 | | 8 years | None | None | Yingda Insurance Financing Plan (2nd) | September 2018 | Equity Instrument | | | 5.79 | % | | | — | | | | — | | | | 827,000 | | 8 years | None | None | Yingda Insurance Financing Plan (3rd) | September 2018 | Equity Instrument | | | 5.79 | % | | | — | | | | — | | | | 890,000 | | 8 years | None | None | China Life Financing Plan (1st) | September 2019 | Equity Instrument | | | 5.05 | % | | | — | | | | — | | | | 2,070,000 | | 8 years | None | None | PICC Financing Plan (1st) | September 2019 | Equity Instrument | | | 5.10 | % | | | — | | | | — | | | | 930,000 | | 10 years | None | None | 2019 medium-term notes (2nd) | October 2019 | Equity Instrument | | | 4.08 | % | | | 0.1 | | | | 20,000,000 | | | | 2,000,000 | | 3 Years | None | None | 2019 medium-term notes (3rd) | October 2019 | Equity Instrument | | | 4.05 | % | | | 0.1 | | | | 20,000,000 | | | | 2,000,000 | | 3 Years | None | None | China Life Financing Plan (2nd) | October 2019 | Equity Instrument | | | 5.05 | % | | | — | | | | — | | | | 2,260,000 | | 8 years | None | None | PICC Financing Plan (2nd) | October 2019 | Equity Instrument | | | 5.10 | % | | | — | | | | — | | | | 1,740,000 | | 10 years | None | None | 2019 medium-term notes (4th) | November 2019 | Equity Instrument | | | 4.15 | % | | | 0.1 | | | | 25,000,000 | | | | 2,500,000 | | 3 Years | None | None | 2019 medium-term notes (4th) | November 2019 | Equity Instrument | | | 4.53 | % | | | 0.1 | | | | 15,000,000 | | | | 1,500,000 | | 5 years | None | None | Total | | | | | | | | | | | | | | | | | 25,000,000 | | | | |
In 2017, the Company issued two tranches of perpetual corporate bonds with the net proceeds of approximately RMB2,500 million and RMB2,500 million, respectively. The perpetual corporate bonds are issued at par value with an initial distribution rate of 5.05% and 5.17%. The interests of the perpetual corporate bonds are recorded as distributions, which are paid annually in arrears in September in each year and may be deferred at the discretion of the Company unless compulsory distribution payment events (e.g. distributions to ordinary shareholders of the Company or reduction of the registered capital of the Company) occur. The perpetual corporate bonds have no fixed maturity date and are callable at the Company’s discretion in whole in August 2020 and 2022 respectively, the payment of the principal may be deferred for each renewal period as 3 and 5 years. The applicable distribution rate will be reset on first call date and each renewal period after first call date, to the sum of the applicable benchmark interest rate, the initial spread and 300 basis points per annum.
22 | Other equity instruments (continued) |
| (b) | Major Provisions (continued) |
In 2018, the Company issued three tranches of Yingda Insurance Financing Plan (“the Yingda plan”) with the aggregate proceeds of RMB5,000 million. The Yingda plan has no fixed period with initial distribution rate of 5.79%. The interests of the financing plan are recorded as distributions, which are paid annually in arrears in June and December in each year and may be deferred at the discretion of the Company unless compulsory payment events (e.g. distributions to ordinary shareholders of the Company or reduction of the registered capital of the Company) occurred.The Yingda plan has no fixed maturity date and are callable at the Company’s discretion in whole at each distribution date after 8th year of issuance, or the payment of the principal may be deferred at each distribution date aforementioned. The applicable distribution rate will be reset during the period from the 9th to the 11th year after the issuance, the period from the 11th to the 13th year after the issuance and the 13th year onwards after the issuance, to the higher of the initial distribution rate plus 300 basis points and the 10-year treasury bond yield in the 9th year after the issuance plus 600 basis points, the higher of the initial distribution rate plus 600 basis points and the 10-year treasury bond yield in the 11th year after the issuance plus 900 basis points and the higher of the initial distribution rate plus 900 basis points and the 10-year treasury bond yield in the 13th year after the issuance plus 1,200 basis points, respectively.
In 2019, the Company issued two tranches of China Life Financing Plan (“the China Life plan”) with the aggregate proceeds of RMB4,330 million. The China Life plan has no fixed period with initial distribution rate of 5.05%. The interests of the China Life plan are recorded as distributions, which are paid annually in arrears in March, June, September and December in each year and may be deferred at the discretion of the Company unless compulsory payment events (e.g. distributions to ordinary shareholders of the Company or reduction of the registered capital of the Company) occurred. The China Life plan has no fixed maturity date and are callable at the Company’s discretion in whole at each distribution date after 8th year of issuance, or the payment of the principal may be deferred at each distribution date aforementioned. The applicable distribution rate will be reset during the period from the 9th year after the issuance, the basis rate plus 300 basis points, and will remain 8.05% afterwards.
In 2019, the Company issued two tranches of PICC Financing Plan (“the PICC plan”) with the aggregate proceeds of RMB2,670 million. The PICC plan has no fixed period with initial distribution rate of 5.10%. The interests of the PICC plan are recorded as distributions, which are paid annually in arrears in March, June, September and December in each year and may be deferred at the discretion of the Company unless compulsory payment events (e.g. distributions to ordinary shareholders of the Company or reduction of the registered capital of the Company) occurred. The PICC plan has no fixed maturity date and are callable at the Company’s discretion in whole at each distribution date after 10th year of issuance, or the payment of the principal may be deferred at each distribution date aforementioned. The applicable distribution rate will be reset during the period from the 11th year after the issuance, the basis rate plus 300 basis points, and will remain 8.10% afterwards.
22 | Other equity instruments (continued) |
| (b) | Major Provisions (continued) |
In October 2019, the Company issued two tranches of medium-term notes with the net proceeds of approximate RMB2,000 million and RMB2,000 million, respectively. The medium-term notes are issued at par value with initial distribution rate of 4.08% and 4.05%. The interests of the medium-term notes are recorded as distributions, which are paid annually in arrears in October in each year and may be deferred at the discretion of the Company unless compulsory distribution payment events (e.g. distributions to ordinary shareholders of the Company or reduction of the registered capital of the Company) occurred. The medium-term notes have no fixed maturity date and are callable at the Company’s discretion at specific time, the payment of the principal may be deferred for each renewal period as 3 years, respectively. The applicable distribution rate will be reset on first call date and each renewal period after first call date, to the sum of the applicable benchmark interest rate, the initial spread and 300 basis points per annum.
In November 2015,2019, the Company issued 780,000,000 H sharestwo tranches of medium-term notes with a par value of RMB1.00, at a price of HK$7.32 per H share. Net proceeds from the issuance amounted to HK$5.69 billion after deducting issuance costs from gross proceeds of HK$5.71 billion. The difference between the net proceeds of approximately RMB2,500 million and RMB1,500 million. The medium term notes are issued at par value with initial distribution rates of 4.15% and 4.53%, respectively. The interests of the additionmedium-term notes are recorded as distributions, which are paid annually in arrears in November in each year and may be deferred at the discretion of the Company unless compulsory distribution payment events (e.g. distributions to shareordinary shareholders of the Company or reduction of the registered capital is recorded in capital surplus.of the Company) occurred. The medium-term notes have no fixed maturity date and are callable at the Company’s discretion at specific time, the payment of the principal may be deferred for each renewal period as 3 and 5 years. The applicable distribution rate will be reset on first call date and each renewal period after first call date, to the sum of the applicable benchmark interest rate, the initial spread and 300 basis points per annum.
All shares issued byThe perpetual corporate bonds, financing plans and medium-term notes were recorded as equity in the Company were fully paid. Theconsolidated financial statements. During the year ended 31 December 2019, the profit attributable to holders of domestic shares and overseas listed foreign shares, in all material aspects, are entitled toother equity instruments, based on the same economic and voting rights. None of the issued A shares are within the lock-up period as at 31 December 2015 and 2016.applicable distribution rate, was RMB686 million.
2122 | Other equity instruments (continued) |
| (c) | Changes of other equity instruments during 2019 |
| | As at 1 January 2019 | | | Issuance | | | Cumulative distributions | | | As at 31 December 2019 | | Type of Instruments | | Number | | | Amount | | | Number | | | Amount | | | Accrued distribution | | | Distribution payment | | | Number | | | Amount | | | | | | | RMB ’000 | | | | | | RMB ’000 | | | RMB ’000 | | | RMB ’000 | | | | | | RMB ’000 | | Bond A | | | 25,000,000 | | | | 2,533,872 | | | | — | | | | — | | | | 126,158 | | | | (126,250 | ) | | | 25,000,000 | | | | 2,533,780 | | Bond B | | | 25,000,000 | | | | 2,534,678 | | | | — | | | | — | | | | 129,155 | | | | (129,250 | ) | | | 25,000,000 | | | | 2,534,583 | | Yingda Insurance Financing Plan (1st) | | | — | | | | 3,288,808 | | | | — | | | | — | | | | 192,726 | | | | (192,726 | ) | | | — | | | | 3,288,808 | | Yingda Insurance Financing Plan (2nd) | | | — | | | | 828,463 | | | | — | | | | — | | | | 48,548 | | | | (48,548 | ) | | | — | | | | 828,463 | | Yingda Insurance Financing Plan (3rd) | | | — | | | | 891,575 | | | | — | | | | — | | | | 52,247 | | | | (52,247 | ) | | | — | | | | 891,575 | | China Life Financing Plan (1st) | | | — | | | | — | | | | — | | | | 2,070,000 | | | | 29,037 | | | | (25,553 | ) | | | — | | | | 2,073,484 | | PICC Financing Plan (1st) | | | — | | | | — | | | | — | | | | 930,000 | | | | 12,911 | | | | (11,989 | ) | | | — | | | | 930,922 | | 2019 medium-term notes (2 nd) | | | — | | | | — | | | | 20,000,000 | | | | 1,994,811 | | | | 16,722 | | | | — | | | | 20,000,000 | | | | 2,011,533 | | 2019 medium-term notes (3 rd) | | | — | | | | — | | | | 20,000,000 | | | | 1,996,222 | | | | 15,049 | | | | — | | | | 20,000,000 | | | | 2,011,271 | | China Life Financing Plan (2nd) | | | — | | | | — | | | | — | | | | 2,260,000 | | | | 20,606 | | | | (16,802 | ) | | | — | | | | 2,263,804 | | PICC Financing Plan (2nd) | | | — | | | | — | | | | — | | | | 1,740,000 | | | | 16,023 | | | | (14,297 | ) | | | — | | | | 1,741,726 | | 2019 medium-term notes (4 th) | | | — | | | | — | | | | 25,000,000 | | | | 2,495,283 | | | | 16,158 | | | | — | | | | 25,000,000 | | | | 2,511,441 | | 2019 medium-term notes (4 th) | | | — | | | | — | | | | 15,000,000 | | | | 1,495,849 | | | | 10,582 | | | | — | | | | 15,000,000 | | | | 1,506,431 | | Total | | | | | | | 10,077,396 | | | | | | | | 14,982,165 | | | | 685,922 | | | | (617,662 | ) | | | | | | | 25,127,821 | |
| | As at | | | | 1 January 20162019 and | | | | 31 December 20162019 | | | | | | Surplus reserves | | | 8,140,030 | |
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 the 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 after being used to increase share capital.
As the statutory surplus reserve reaches 50% of the registered share capital in 2016,2019, the Company made no provision this year.
23 | Surplus reserves (continued) |
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 20162019 and 2015,2018, no provision was made to the discretionary surplus reserve.
21 | Surplus reserves (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 2016,2019, in accordance with PRC GAAP and IFRS, the balance of retained earnings for the Company and its subsidiariesGroup amounted to approximately RMB39.212RMB30.708 billion and RMB38.690RMB33.677 billion, respectively; and the balance of retained earnings for the Company amounted RMB35.416RMB38.980 billion and RMB32.349RMB36.830 billion, respectively.
2224 | Dividends of ordinary shares and cumulative distribution of other equity instruments |
| (a) | Dividends of ordinary shares |
On 2131 March 2017,2020, the Board of Directors proposed a cash dividend of RMB0.29RMB0.135 per share, totaling approximately RMB4,408RMB2,119 million. This proposal is subject to the approval of the shareholders at the annual general meeting.
On 2312 June 2016,2019, upon the approval from the annual general meeting of the shareholders, the Company declared 20152018 final dividend of RMB0.47 (2014: RMB0.38)RMB0.1 (2017: RMB0.1) per ordinary share, totalingtotalling approximately RMB7,144RMB1,570 million (2014: RMB5,480(2017: RMB1,520 million).
23
| (b) | Cumulative distribution of other equity instruments |
The other equity instruments were recorded as equity in the consolidated financial statements. For the year ended 31 December 2019, net profit attributable to holders of other equity instruments, based on the applicable rate, was RMB686 million, and the cumulative distribution paid-in 2019 was RMB618 million.
Long-term loans comprised the following:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | Loans from Huaneng Group | | | | | | | | and its subsidiaries (a) | | | 3,818,807 | | | | 2,696,225 | | | Loans from Huaneng Group and its subsidiaries (a) | | | 5,403,574 | | | 4,724,753 | | Bank loans and other loans (b) | | | 70,732,439 | | | | 75,683,003 | | | | 128,619,138 | | | | 145,444,257 | | | | | 74,551,246 | | | | 78,379,228 | | | | | | | | | | | 134,022,712 | | | 150,169,010 | | | | | | | | | | Less: Current portion of long-term loans | | | 9,560,885 | | | | 12,351,205 | | | | 18,658,114 | | | | 20,620,849 | | | | | | | | | | Total | | | 64,990,361 | | | | 66,028,023 | | | | 115,364,598 | | | | 129,548,161 | |
25 | Long-term loans (continued) |
| (a) | Loans from Huaneng Group and its subsidiaries |
Details of loans from Huaneng Group and its subsidiaries are as follows:
| | | As at 31 December 2019 | | | | | Original currency | | | RMB equivalent | | | Less: Current portion | | | Non-current portion | | | Annual interest rate | | | | | ’000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans from Huaneng Group | | | | | | | | | | | | | | | | | Unsecured | | | | | | | | | | | | | | | | | RMB | | | | | | | | | | | | | | | | | - Variable rate | | | 665,225 | | | | 665,225 | | | | - | | | | 665,225 | | | 4.75 | % | | | | | | | | | | | | | | | | | | Loans from Huaneng Finance | | | | | | | | | | | | | | | | | Unsecured | | | | | | | | | | | | | | | | | RMB | | | | | | | | | | | | | | | | | - Variable rate | | | 3,808,800 | | | 3,808,800 | | | 413,200 | | | 3,395,600 | | | 4.28%-4.75 | % | - Fixed rate | | | 28,000 | | | | 28,000 | | | | - | | | | 28,000 | | | 4.51%-4.61 | % | | | | | | | | | | | | | | | | | | Loans from Huaneng Tiancheng Financial Leasing Co., Ltd. (“Tiancheng Financial Leasing”) | | | | | | | | | | | | | | | | | Secured | | | | | | | | | | | | | | | | | RMB | | | | | | | | | | | | | | | | | - Variable rate | | | 580,891 | | | 580,891 | | | 246,549 | | | 334,342 | | | 4.42%-5.20 | % | - Fixed rate | | | 320,658 | | | | 320,658 | | | | 150,000 | | | | 170,658 | | | 5.10%-6.60 | % | | | | �� | | | | | | | | | | | | | | Total | | | | | | | 5,403,574 | | | | 809,749 | | | | 4,593,825 | | | | | | | As at 31 December 2016 | | | | | | | | | | | | | | | | | | | | | | | | | Less: | | | Non- | | | | | | As at 31 December 2018 | | | | Original | | | RMB | | | Current | | | current | | | Annual | | | Original currency | | | RMB equivalent | | | Less: Current portion | | | Non-current portion | | | Annual interest rate | | | | currency | | | equivalent | | | portion | | | portion | | | interest rate | | | ’000 | | | | | | | | | | | | | | | | | ’000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans from Huaneng Group | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unsecured | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RMB | | | 665,015 | | | | 665,015 | | | | 640,485 | | | | 24,530 | | | | 4.75 | % | | | | | | | | | | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | Loans from HIPDC | | | | | | | | | | | | | | | | | | | | | | Unsecured | | | | | | | | | | | | | | | | | | | | | | RMB | | | 210 | | | | 210 | | | | - | | | | 210 | | | | 4.75 | % | | - Variable rate | | | 665,225 | | | | 665,225 | | | | - | | | | 665,225 | | | 4.75 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans from Huaneng Finance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unsecured | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RMB | | | 286,000 | | | | 286,000 | | | | 60,000 | | | | 226,000 | | | | 4.41%-4.75 | % | | | | | | | | | | | | | | | | - Variable rate | | | 3,596,000 | | | | 3,596,000 | | | | 469,200 | | | | 3,126,800 | | | 4.28%-4.75 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans from Huaneng Tiancheng Financial Leasing Co., Ltd. | | | | | | | | | | | (“Tiancheng Financial Leasing”) (Note) | | | | | | | | | | | Loans from Huaneng Tiancheng Financial Leasing Co., Ltd. (“Tiancheng Financial Leasing”) | | | | | | | | | | | | | | | | | Secured | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RMB | | | 2,867,582 | | | | 2,867,582 | | | | 154,737 | | | | 2,712,845 | | | | 4.42 | % | | | | | | | | | | | | | | | | - Variable rate | | | 463,528 | | | | 463,528 | | | | 141,265 | | | | 322,263 | | | 4.42%-4.75 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | 3,818,807 | | | | 855,222 | | | | 2,963,585 | | | | | | | | | | | 4,724,753 | | | | 610,465 | | | | 4,114,288 | | | | |
2325 | Long-term loans (Continued)(continued) |
| (a)(b) | Loans from Huaneng GroupBank loans and its subsidiaries (Continued)other loans |
| | 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 | | | | | |
Details of bank loans and other loans are as follows:
| As at 31 December 2019 | | Original currency | RMB equivalent | Less: Current portion | Non-current portion | Annual interest rate | | ’000 | | | | | Secured | | | | | | RMB | | | | | | - Fixed rate | 5,032,030 | 5,032,030 | 1,262,520 | 3,769,510 | 4.41%-4.90% | - Variable rate | 4,528,406 | 4,528,406 | 521,689 | 4,006,717 | 4.28%-4.90% | S$ | | | | | | - Variable rate | 79,371 | 410,658 | - | 410,658 | 2.93% | Unsecured | | | | | | RMB | | | | | | - Fixed rate | 7,477,712 | 7,477,712 | 1,803,335 | 5,674,377 | 2.65%-5.39% | - Variable rate | 88,504,897 | 88,504,897 | 12,691,426 | 75,813,471 | 1.80%-6.55% | US$ | | | | | | - Variable rate | 1,430,672 | 9,974,968 | 1,095,931 | 8,879,037 | 2.90%-6.82% | S$ | | | | | | - Variable rate | 2,400,063 | 12,417,684 | 431,622 | 11,986,062 | 3.33% | € | | | | | | - Fixed rate | 15,451 | 120,760 | 34,772 | 85,988 | 2.00%-2.15% | JPY | | | | | | - Fixed rate | 2,372,009 | 152,023 | 7,070 | 144,953 | 0.75% | | | | | | | Total | | 128,619,138 | 17,848,365 | 110,770,773 | | | | | | | | | As at 31 December 2018 | | Original currency | RMB equivalent | Less: Current portion | Non- current portion | Annual interest rate | | ’000 | | | | | Secured | | | | | | RMB | | | | | | - Fixed rate | 5,853,730 | 5,853,730 | 1,211,700 | 4,642,030 | 4.41%-4.90% | - Variable rate | 3,504,911 | 3,504,911 | 528,586 | 2,976,325 | 4.28%-4.90% | S$ | | | | | | - Variable rate | 20,359 | 101,920 | - | 101,920 | 3.25% | Unsecured | | | | | | RMB | | | | | | - Fixed rate | 11,133,929 | 11,133,929 | 4,184,303 | 6,949,626 | 2.00%-5.39% | - Variable rate | 101,626,230 | 101,626,230 | 12,589,306 | 89,036,924 | 1.80%-6.55% | US$ | | | | | | - Variable rate | 1,548,255 | 10,625,985 | 910,948 | 9,715,037 | 1.74%-7.29% | S$ | | | | | | - Variable rate | 2,451,466 | 12,272,527 | 530,272 | 11,742,255 | 3.46% | € | | | | | | - Fixed rate | 21,841 | 171,393 | 48,441 | 122,952 | 0.75%-2.15% | JPY | | | | | | - Fixed rate | 2,482,335 | 153,632 | 6,828 | 146,804 | 0.75% | | | | | | | Total | | 145,444,257 | 20,010,384 | 125,433,873 | |
25 | Long-term loans (continued) |
As at 31 December 2019, long-term loans of approximately RMB7,287 million were secured by future electricity revenue (31 December 2018: RMB8,938 million).
As at 31 December 2019, long-term loans of RMB3,586 million (31 December 2018: RMB986 million) were secured by certain property, plant and equipment with a net book value amounting to approximately RMB4,913 million (31 December 2018: RMB1,756 million).
Certain subsidiaries of the Company enforced theGroup had sales and leaseback agreements with Tiancheng Financial Leasing.Leasing and other financial leasing companies. 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.expires. The substance of the transaction was to obtain financing secured by relevant assets within the leasing period. As at 31 December 2016,2019, the power generation equipment mentioned above has ahad total carrying amountamounts of RMB2.999 billionRMB1,955 million and RMB2,958 million (31 December 2018: RMB769 million and RMB987 million) respectively, which were recognised in property, plant and equipment while the long-term borrowings were RMB902 million and RMB2,684 million (31 December 2018: RMB464 million and RMB522 million) from Tiancheng Financial Leasing is RMB2.868 billion.
| (b) | Bank loans and other loans |
Details of bank loans and other 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 | | | | | |
23 | Long-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 2016, there was no long-term loan secured by territorial water use right (31 December 2015: a long-term loan of RMB18 million was secured by territorial water use right with net book value amounting RMB78.38 million).financial leasing companies, respectively.
As at 31 December 2016, long-term loans of RMB2,902 million (31 December 2015: RMB67 million) were secured by certain property, plant and equipment with net book value amounting to approximately RMB3,105 million (31 December 2015: RMB150 million).
As at 31 December 2016,2019, long-term loans of approximately RMB9,032RMB8,797 million were securedguaranteed by future electricity revenue (31 December 2015: RMB9,558 million).Huaneng Group or other third parties. Please refer to Note 37(c) for details of long term loans guaranteed by the related parties.
The maturity of long-term loans is as follows:
| | | Loans from | | | | Loans from Huaneng Group and its subsidiaries | | | Bank loans and other loans | | | Huaneng Group and its subsidiaries | | | Bank loans and other loans | | | | As at 31 December | | | As at 31 December | | | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | 1 year or less | | | 855,222 | | | | 2,437,225 | | | | 8,705,663 | | | | 9,913,980 | | | 809,749 | | | 610,465 | | | 17,848,365 | | | 20,010,384 | | More than 1 year but no more than 2 years | | | 715,400 | | | | 62,000 | | | | 11,420,746 | | | | 12,028,176 | | | 1,320,611 | | | 760,580 | | | 28,426,578 | | | 27,940,579 | | More than 2 years but no more than 3 years | | | 953,082 | | | | 68,000 | | | | 11,081,242 | | | | 9,134,791 | | | 1,389,225 | | | 1,104,684 | | | 18,597,867 | | | 33,477,976 | | More than 3 years but no more than 4 years | | | 928,082 | | | | 2,000 | | | | 7,769,955 | | | | 9,219,121 | | | 106,719 | | | 805,024 | | | 11,400,277 | | | 14,109,277 | | More than 4 years but no more than 5 years | | | 232,021 | | | | 2,000 | | | | 7,618,953 | | | | 6,404,924 | | | 87,509 | | | 97,000 | | | 18,140,495 | | | 11,216,306 | | More than 5 years | | | 135,000 | | | | 125,000 | | | | 24,135,880 | | | | 28,982,011 | | | | 1,689,761 | | | | 1,347,000 | | | | 34,205,556 | | | | 38,689,735 | | | | | 3,818,807 | | | | 2,696,225 | | | | 70,732,439 | | | | 75,683,003 | | | | | | | | | | | | | | | | | 5,403,574 | | | 4,724,753 | | | 128,619,138 | | | 145,444,257 | | Less: amount due within 1 year included under current liabilities | | | 855,222 | | | | 2,437,225 | | | | 8,705,663 | | | | 9,913,980 | | | 809,749 | | | 610,465 | | | 17,848,365 | | | 20,010,384 | | | | | | | | | | | | | | | | Total | | | 2,963,585 | | | | 259,000 | | | | 62,026,776 | | | | 65,769,023 | | | | 4,593,825 | | | | 4,114,288 | | | | 110,770,773 | | | | 125,433,873 | |
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 | |
The Company issuedOutstanding corporate bonds, with maturity of 5 years, 7 yearsmedium-term notes 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 tenuredebt financing instrument of the Group as at 31 December 2019 are summarised as follows:
Type of Instruments | | | Face Value | | | Issuance Date | | | Initial Period | | | Initial Distribution Rate | | | Effective Rate | | | Issue Price | | | Balance as at 31 December 2018 | | | Issued Amount | | | Interest | | | Amortization | | | Repayment | | | Balance as at 31 December 2019 | | | | | RMB’000 | | | | | | | | | | | | | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2014 medium-term notes (1 st) | | | 4,000,000 | | | July 2014 | | | 5 years | | | 5.30% | | | 5.37% | | | 4,000,000 | | | 3,993,479 | | | - | | | 112,679 | | | 6,521 | | | (4,000,000 | ) | | - | | 2016 corporate bonds (1 st) | | | 3,000,000 | | | June 2016 | | | 5 years | | | 3.48% | | | 3.48% | | | 3,000,000 | | | 3,000,010 | | | - | | | 104,400 | | | 62 | | | - | | | 3,000,072 | | 2016 corporate bonds (1 st) | | | 1,200,000 | | | June 2016 | | | 10 years | | | 3.98% | | | 3.98% | | | 1,200,000 | | | 1,199,973 | | | - | | | 47,760 | | | 12 | | | - | | | 1,199,985 | | 2017 medium-term notes (1 st) | | | 5,000,000 | | | July 2017 | | | 5 years | | | 4.69% | | | 4.90% | | | 5,000,000 | | | 5,000,939 | | | - | | | 234,500 | | | 939 | | | - | | | 5,001,878 | | 2017 debt financing instrument (1 st) | | | 500,000 | | | July 2017 | | | 3 years | | | 4.75% | | | 4.81% | | | 500,000 | | | 499,563 | | | - | | | 23,750 | | | 283 | | | - | | | 499,846 | | 2017 corporate bonds (1 st) | | | 2,300,000 | | | November 2017 | | | 3 years | | | 4.99% | | | 4.99% | | | 2,300,000 | | | 2,299,916 | | | - | | | 114,770 | | | 46 | | | - | | | 2,299,962 | | 2018 corporate bonds (1 st) | | | 1,500,000 | | | April 2018 | | | 3 years | | | 4.90% | | | 4.90% | | | 1,500,000 | | | 1,500,010 | | | - | | | 73,500 | | | 30 | | | - | | | 1,500,040 | | 2018 medium-term notes (1 st) | | | 3,000,000 | | | May 2018 | | | 3 years | | | 4.80% | | | 4.91% | | | 3,000,000 | | | 2,993,135 | | | - | | | 144,000 | | | 2,934 | | | - | | | 2,996,069 | | 2018 medium-term notes (2 nd) | | | 2,000,000 | | | July 2018 | | | 3 years | | | 4.41% | | | 4.56% | | | 2,000,000 | | | 1,998,518 | | | - | | | 88,200 | | | 2,824 | | | - | | | 2,001,342 | | 2018 debt financing instrument (1 st) | | | 2,500,000 | | | July 2018 | | | 3 years | | | 4.68% | | | 4.81% | | | 2,500,000 | | | 2,492,636 | | | - | | | 117,000 | | | 2,911 | | | - | | | 2,495,547 | | 2018 corporate bonds (2 nd) | | | 5,000,000 | | | September 2018 | | | 10 years | | | 5.05% | | | 5.05% | | | 5,000,000 | | | 4,999,963 | | | - | | | 252,500 | | | 30 | | | - | | | 4,999,993 | | 2019 corporate bonds (1 st) | | | 2,300,000 | | | April 2019 | | | 10 years | | | 4.70% | | | 4.70% | | | 2,300,000 | | | - | | | 2,300,000 | | | 74,725 | | | (10 | ) | | - | | | 2,299,990 | | 2019 corporate bonds (2 nd) | | | 1,000,000 | | | July 2019 | | | 3 years | | | 3.55% | | | 3.55% | | | 1,000,000 | | | - | | | 1,000,000 | | | 17,071 | | | 7 | | | - | | | 1,000,007 | | 2019 medium-term notes (1 st) | | | 500,000 | | | July 2019 | | | 3 years | | | 3.55% | | | 3.65% | | | 500,000 | | | - | | | 500,000 | | | 8,051 | | | (1,241 | ) | | - | | | 498,759 | | 2019 medium-term notes (1 st) | | | 1,500,000 | | | July 2019 | | | 5 years | | | 3.85% | | | 3.96% | | | 1,500,000 | | | - | | | 1,500,000 | | | 26,193 | | | (6,567 | ) | | - | | | 1,493,433 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | | | | | | 35,300,000 | | | 29,978,142 | | | 5,300,000 | | | 1,439,099 | | | 8,781 | | | (4,000,000 | ) | | 31,286,923 | |
26 | Long-term bonds (continued) |
Outstanding corporate bonds, is RMB57 million, RMB98 millionmedium-term notes and RMB195 million, respectively. The bond with original maturitydebt financing instrument of 5 years had matured inthe Group as at 31 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. 2018 are summarised as follows:
Type of Instruments | | | Face Value | | | Issuance Date | | | Initial Period | | | Initial Distribution Rate | | | Effective Rate | | | Issue Price | | | Balance as at 31 December 2017 | | | Issued Amount | | | Interest | | | Amortization | | | Repayment | | | Balance as at 31 December 2018 | | | | | RMB’000 | | | | | | | | | | | | | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2008 corporate bonds (1 st) | | | 4,000,000 | | | May 2008 | | | 10 years | | | 5.20% | | | 5.42% | | | 4,000,000 | | | 3,997,033 | | | - | | | 72,943 | | | 2,967 | | | (4,000,000 | ) | | - | | 2014 medium-term notes (1 st) | | | 4,000,000 | | | July 2014 | | | 5 years | | | 5.30% | | | 5.37% | | | 4,000,000 | | | 3,993,809 | | | - | | | 212,000 | | | (330 | ) | | - | | | 3,993,479 | | 2016 corporate bonds (1 st) | | | 3,000,000 | | | June 2016 | | | 5 years | | | 3.48% | | | 3.48% | | | 3,000,000 | | | 2,999,949 | | | - | | | 104,400 | | | 61 | | | - | | | 3,000,010 | | 2016 corporate bonds (1 st) | | | 1,200,000 | | | June 2016 | | | 10 years | | | 3.98% | | | 3.98% | | | 1,200,000 | | | 1,199,961 | | | - | | | 47,760 | | | 12 | | | - | | | 1,199,973 | | 2017 medium-term notes (1 st) | | | 5,000,000 | | | July 2017 | | | 5 years | | | 4.69% | | | 4.90% | | | 5,000,000 | | | 5,000,000 | | | - | | | 234,500 | | | 939 | | | - | | | 5,000,939 | | 2017 debt financing instrument (1 st) | | | 500,000 | | | July 2017 | | | 3 years | | | 4.75% | | | 4.81% | | | 500,000 | | | 500,129 | | | - | | | 23,750 | | | (566 | ) | | - | | | 499,563 | | 2017 corporate bonds (1 st) | | | 2,300,000 | | | November 2017 | | | 3 years | | | 4.99% | | | 4.99% | | | 2,300,000 | | | 2,299,985 | | | - | | | 114,770 | | | (69 | ) | | - | | | 2,299,916 | | 2018 corporate bonds (1 st) | | | 1,500,000 | | | April 2018 | | | 3 years | | | 4.90% | | | 4.90% | | | 1,500,000 | | | - | | | 1,500,000 | | | 54,773 | | | 10 | | | - | | | 1,500,010 | | 2018 medium-term notes (1 st) | | | 3,000,000 | | | May 2018 | | | 3 years | | | 4.80% | | | 4.91% | | | 3,000,000 | | | - | | | 3,000,000 | | | 96,263 | | | (6,865 | ) | | - | | | 2,993,135 | | 2018 medium-term notes (2 nd) | | | 2,000,000 | | | July 2018 | | | 3 years | | | 4.41% | | | 4.56% | | | 2,000,000 | | | - | | | 2,000,000 | | | 42,046 | | | (1,482 | ) | | - | | | 1,998,518 | | 2018 debt financing instrument (1 st) | | | 2,500,000 | | | July 2018 | | | 3 years | | | 4.68% | | | 4.81% | | | 2,500,000 | | | - | | | 2,500,000 | | | 55,775 | | | (7,364 | ) | | - | | | 2,492,636 | | 2018 corporate bonds (2 nd) | | | 5,000,000 | | | September 2018 | | | 10 years | | | 5.05% | | | 5.05% | | | 5,000,000 | | | - | | | 5,000,000 | | | 78,171 | | | (37 | ) | | - | | | 4,999,963 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | | | | | | 34,000,000 | | | 19,990,866 | | | 14,000,000 | | | 1,137,151 | | | (12,724 | ) | | (4,000,000 | ) | | 29,978,142 | |
27 Other non-current liabilities
| | As at 31 December | | | | 2019 | | | 2018 | | | | | | | | | Finance lease payables (a) | | | - | | | | 1,442,174 | | Government grants | | | | | | | | | -Environmental subsidies (b) | | | 1,155,147 | | | | 1,224,878 | | -Other government grants | | | 306,077 | | | | 320,083 | | Contract liabilities | | | 2,443,254 | | | | 2,248,682 | | Other deferred income | | | 52,760 | | | | 70,211 | | Others | | | 888,809 | | | | 1,114,754 | | | | | | | | | | | Subtotal | | | 4,846,047 | | | | 6,420,782 | | | | | | | | | | | Current portion of finance lease payables (a) | | | - | | | | (326,048 | ) | Current portion of other non-current liabilities | | | (65,277 | ) | | | (149,598 | ) | | | | | | | | | | Subtotal | | | (65,277 | ) | | | (475,646 | ) | | | | | | | | | | | | | | | | | | | Total | | | 4,780,770 | | | | 5,945,136 | |
| (a) | The Group’s certain leases were classified as finance leases prior to IFRS 16 becoming effective on 1 January 2019 and had remaining lease terms ranging from 2 to 9 years. Upon the adoption of IFRS 16, finance lease payables were classified from “other non-current liabilities” to “lease liabilities”. Please refer to note 43 for other details of liabilities. |
As at 31 December 2016, interest payables for2018, the unmatured bonds amounted to approximately RMB3.73 million (31 December 2015: 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. InterestGroup’s finance lease obligation 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 2016, interest payable for these bonds amounted to approximately RMB135.06 million (31 December 2015: RMB134.69 million).as follows:
In November 2011, the Company issued non-public debt financing instrument with maturity of 5 years with face value of RMB5 billion bearing annual interest rate of 5.74%. The actual proceeds received by the Company were approximately RMB4.985 billion. This bond is denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bond falls due. The annual effective interest rate of this bond is 6.04%. Interest paid per annum during the tenure of the bond is RMB287 million. The bond had matured in November 2016 and the Company repaid the principal of RMB5 billion.
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 semi-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. The bond had matured in February 2016 and the 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. The bond had matured in June 2016 and the Company repaid the principal of RMB5 billion.
24 | Long-term bonds (Continued)
| 31 December | | | | 2018 | | Within 1 year | | | 415,962 | | After 1 year but within 2 years | | | 341,415 | | After 2 years but within 3 years | | | 327,239 | | After 3 years | | | 674,355 | | | | | | | | | | 1,758,971 | | | | | | | Less: Total future interest expense | | | 316,797 | | | | | | | Total | | | 1,442,174 | |
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 2016, interest payable for the bonds amounted to approximately RMB99.32 million (31 December 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.
25 | Other 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 | |
| (a) | The Company and its subsidiaries had obligation under finance leases as follows: |
| | 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 | |
| (b) | This primarily represented subsidies for the construction of desulphurization equipment and other environmental protection projects. |
| (c) | In 2016, the asset-related government grants which were credited to the statement of comprehensive income amounted to RMB102.21 million (2015: RMB98.88 million). |
2628 | Accounts payable and other liabilities |
Accounts payable and other liabilities comprised:
| | | As at 31 December | | | | As at 31 December | | | 2019 | | | 2018 | | | | 2016 | | | 2015 | | | | | | | | Accounts and notes payable | | | 12,059,004 | | | | 9,403,088 | | | 15,850,958 | | | 14,683,707 | | Amounts received in advance | | | 365,887 | | | | 472,886 | | | Payables to contractors for construction | | | 10,832,444 | | | | 11,425,575 | | | 12,695,720 | | | 12,353,097 | | Retention payables to contractors | | | 1,445,383 | | | | 1,200,724 | | | 1,537,024 | | | 1,557,737 | | Accrued interests | | | 676,462 | | | | 874,333 | | | 1,276,703 | | | 1,152,767 | | 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 | | | | 5,909,676 | | | | 5,391,372 | | | | | | | | | | | | | | | | | Total | | | 28,325,227 | | | | 26,185,764 | | | | 37,270,081 | | | | 35,138,680 | |
Please refer to Note 35(a)37(a)(iv) for details of accounts payable and other liabilities due to the related parties.
As at 31 December 2016,2019, there was nowere notes payable, amounting to RMB89 million (2018: nil), secured by notes receivable (2015:receivable.
As at 31 December 2019 and 31 December 2018, the accounts and notes payable of RMB14 million was secured by notes receivable with net book value amounted to RMB14 million).payables and other liabilities are non-interest-bearing.
The carrying amounts of financial liabilities (excluding amounts received in advance) included in accounts payable and other liabilities are denominated in the following currencies:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | RMB | | | 26,801,242 | | | | 24,773,457 | | | 34,996,912 | | | 33,354,665 | | S$ (RMB equivalent) | | | 669,797 | | | | 517,192 | | | 1,024,453 | | | 561,064 | | US$ (RMB equivalent) | | | 479,179 | | | | 392,953 | | | 940,749 | | | 1,075,678 | | JPY (RMB equivalent) | | | 6,917 | | | | 29,264 | | | 12,564 | | | 10,088 | | EUR (RMB equivalent) | | | 2,205 | | | | 12 | | | 1,194 | | | - | | PKR (RMB equivalent) | | | | 294,209 | | | | 137,185 | | | | | | | | | | | | | | | | | Total | | | 27,959,340 | | | | 25,712,878 | | | | 37,270,081 | | | | 35,138,680 | |
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 | | | | 2019 | | | 2018 | | | | | | | | | Within 1 year | | | 15,435,470 | | | | 14,423,179 | | Between 1 to 2 years | | | 311,880 | | | | 143,514 | | Over 2 years | | | 103,608 | | | | 117,014 | | | | | | | | | | | Total | | | 15,850,958 | | | | 14,683,707 | |
Taxes payable comprises:
| | | As at 31 December | | | | As at 31 December | | | 2019 | | | 2018 | | | | 2016 | | | 2015 | | | | | | | | VAT payable | | | 439,304 | | | | 663,243 | | | 908,491 | | | 867,615 | | Income tax payable | | | 440,791 | | | | 1,054,246 | | | 748,957 | | | 231,299 | | Others | | | 209,010 | | | | 353,982 | | | | 444,169 | | | | 375,523 | | | | | | | | | | | | | | | | | Total | | | 1,089,105 | | | | 2,071,471 | | | | 2,101,617 | | | | 1,474,437 | |
| | | Face Value | | | Issuance Date | | | Maturity | | | Issue Price | | | Coupon Rate | | | Balance as at 31 December 2018 | | | Issued Amount | | | Interest | | | Amortization | | | Repayment | | | Balance as at 31 December 2019 | | | | | RMB’000 | | | | | | | | | RMB’000 | | | | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | | RMB’000 | | Super short-bond (2018 11th) | | | 2,500,000 | | | October 2018 | | | 180 days | | | 2,500,000 | | | 3.20% | | | 2,515,816 | | | - | | | 23,233 | | | 403 | | | (2,539,452 | ) | | - | | Super short-bond (2018 12th) | | | 2,000,000 | | | November 2018 | | | 90 days | | | 2,000,000 | | | 2.78% | | | 2,006,575 | | | - | | | 6,703 | | | 432 | | | (2,013,710 | ) | | - | | Super short-bond (2018 13th) | | | 2,000,000 | | | November 2018 | | | 180 days | | | 2,000,000 | | | 3.10% | | | 2,006,841 | | | - | | | 23,781 | | | (47 | ) | | (2,030,575 | ) | | - | | Super short-bond (2018 14th) | | | 2,000,000 | | | November 2018 | | | 180 days | | | 2,000,000 | | | 3.05% | | | 2,005,323 | | | - | | | 23,564 | | | 1,195 | | | (2,030,082 | ) | | - | | Super short-bond (2018 15th) | | | 2,000,000 | | | November 2018 | | | 90 days | | | 2,000,000 | | | 2.78% | | | 2,004,557 | | | - | | | 8,531 | | | 622 | | | (2,013,710 | ) | | - | | Super short-bond (2018 16th) | | | 1,000,000 | | | December 2018 | | | 270 days | | | 1,000,000 | | | 3.30% | | | 1,002,342 | | | - | | | 22,060 | | | 9 | | | (1,024,411 | ) | | - | | Super short-bond (2019 1st) | | | 2,000,000 | | | March 2019 | | | 90 days | | | 2,000,000 | | | 2.40% | | | - | | | 2,000,000 | | | 11,803 | | | - | | | (2,011,803 | ) | | - | | Super short-bond (2019 2nd) | | | 5,000,000 | | | May 2019 | | | 180 days | | | 5,000,000 | | | 2.30% | | | - | | | 5,000,000 | | | 56,557 | | | - | | | (5,056,557 | ) | | - | | Super short-bond (2019 3rd) | | | 2,000,000 | | | May 2019 | | | 90 days | | | 2,000,000 | | | 2.30% | | | - | | | 2,000,000 | | | 11,311 | | | - | | | (2,011,311 | ) | | - | | Super short-bond (2019 4th) | | | 2,000,000 | | | June 2019 | | | 90 days | | | 2,000,000 | | | 2.40% | | | - | | | 2,000,000 | | | 11,803 | | | - | | | (2,011,803 | ) | | - | | Super short-bond (2019 5th) | | | 2,000,000 | | | June 2019 | | | 90 days | | | 2,000,000 | | | 2.40% | | | - | | | 2,000,000 | | | 11,803 | | | - | | | (2,011,803 | ) | | - | | Super short-bond (2019 6th) | | | 2,000,000 | | | August 2019 | | | 90 days | | | 2,000,000 | | | 2.20% | | | - | | | 2,000,000 | | | 10,820 | | | - | | | (2,010,820 | ) | | - | | Super short-bond (2019 7th) | | | 4,000,000 | | | September 2019 | | | 60 days | | | 4,000,000 | | | 2.20% | | | - | | | 4,000,000 | | | 14,426 | | | - | | | (4,014,426 | ) | | - | | Super short-bond (2019 8th) | | | 2,000,000 | | | September 2019 | | | 90 days | | | 2,000,000 | | | 2.15% | | | - | | | 2,000,000 | | | 10,574 | | | - | | | (2,010,574 | ) | | - | | Super short-bond (2019 9th) | | | 5,000,000 | | | October 2019 | | | 180 days | | | 5,000,000 | | | 2.09% | | | - | | | 5,000,000 | | | 17,416 | | | 754 | | | - | | | 5,018,170 | | Super short-bond (2019 10th) | | | 2,000,000 | | | November 2019 | | | 90 days | | | 2,000,000 | | | 2.00% | | | - | | | 2,000,000 | | | 5,902 | | | 196 | | | - | | | 2,006,098 | | Super short-bond (2019 11th) | | | 2,000,000 | | | December 2019 | | | 60 days | | | 2,000,000 | | | 1.80% | | | - | | | 2,000,000 | | | 1,180 | | | 87 | | | - | | | 2,001,267 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | 41,500,000 | | | | | | 11,541,454 | | | 30,000,000 | | | 271,467 | | | 3,651 | | | (32,791,037 | ) | | 9,025,535 | |
The Company issued unsecured short-term bonds with face values of RMB5 billion and RMB3 billion bearing annual interest rates of 4.44% and 3.17% in April 2015 and August 2015. Such bonds are denominated in RMB, issued at par and mature in 366 days. The annual effective interest rates of these bonds are 4.86% and 3.58%. The bonds had matured and were fully repaid in April 2016 and August 2016 respectively.
The Company issued unsecured super short-term bonds with face values of RMB2 billion, RMB2 billion, RMB2 billion and RMB5 billion bearing annual interest rates of 3.11%, 3.10% , 3.38% and 3.05%, in June 2015, June 2015, June 2015 and 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 3.42%, 3.41%, 3.69% and 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.
28 | Short-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 2016, interest payables for the outstanding bonds amounted to approximately RMB70.28 million, RMB54.70 million, RMB49.14 million, RMB46.85 million, RMB7.95 million, RMB11.02 million and RMB5.10 million, respectively.
Short-term loans are as follows:
| | As at 31 December 2016 | | | As at 31 December 2015 | | | | | Original | | | RMB | | | Annual | | | Original | | | RMB | | | Annual | | | As at 31 December 2019 | | | As at 31 December 2018 | | | | currency | | | equivalent | | | interest rate | | | currency | | | equivalent | | | interest rate | | | Original currency | | | RMB equivalent | | | Annual interest rate | | | Original currency | | | RMB equivalent | | | Annual interest rate | | | | | ’000 | | | | | | | | | | ’000 | | | | | | | | | ’000 | | | | | | | | | ’000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Secured | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RMB | | | 125,534 | | | | 125,534 | | | | 2.77%-3.80 | % | | | 307,149 | | | | 307,149 | | | | 3.19%-4.30 | % | | | | | | | | | | | | | | | | | | | - Fixed rate | | | 667,979 | | | 667,979 | | | 0.00%-4.20 | % | | 435,856 | | | 435,856 | | | 3.41%-6.90 | % | - Variable rate | | | - | | | - | | | - | | | 75,000 | | | 75,000 | | | 3.60%-3.85 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unsecured | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RMB | | | 57,543,340 | | | | 57,543,340 | | | | 3.57%-4.35 | % | | | 49,576,340 | | | | 49,576,340 | | | | 3.83%-5.60 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | - Fixed rate | | | 13,935,660 | | | 13,935,660 | | | 3.15%-4.35 | % | | 11,740,658 | | | 11,740,658 | | | 3.30%-4.90 | % | - Variable rate | | | 50,948,412 | | | 50,948,412 | | | 3.60%-4.79 | % | | 47,227,150 | | | 47,227,150 | | | 3.92%-4.65 | % | US$ | | | | | | | | | | | | | | | | | | | | - Variable rate | | | 200,000 | | | 1,394,304 | | | 3.32 | % | | 180,401 | | | 1,238,131 | | | 3.79 | % | PKR | | | | | | | | | | | | | | | | | | | | - Variable rate | | | 3,857,000 | | | | 173,013 | | | 14.58 | % | | 6,500,000 | | | | 321,977 | | | 11.51 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | 57,668,874 | | | | | | | | | | | | 49,883,489 | | | | | | | | | | | 67,119,368 | | | | | | | | | | 61,038,772 | | | | |
As at 31 December 2016,2019, short-term loans of RMB126RMB659 million (31 December 2015: RMB3072018: RMB461 million) represented the notes receivable that were discounted with recourse. As these notes receivable had not yet matured, the proceeds received were recorded as short-term loans.
As at 31 December 2016, a2019, short-term loanloans borrowed from Xi’an Thermal Power Research Institute Co.China Minsheng Banking Corp., LtdLtd. (“Xi’an Thermal”China Minsheng Bank”) amounted to RMB100RMB9 million (31 December 2015: nil) with annual interest ratewere secured by deposit of 3.92%.RMB1.49 million.
As at 31 December 2016,2019, short-term loans of RMB1,567 million (31 December 2018: RMB1,560 million) represented the guaranteed loan borrowed by Ruyi Pakistan Energy, of which US$0.2 billion (RMB equivalents of RMB1,394 million) is guaranteed by Shandong Power and Ruyi Technology Group (the other shareholder of Ruyi Pakistan Energy) on the proportion of the shareholding basis and PKR3.86 billion (RMB equivalents of RMB173 million) is guaranteed by Shandong Luyi Power International Limited Company (“Luyi Power”), a joint venture of Shandong Power.
As at 31 December 2019, short-term loans borrowed from Huaneng Finance amounted to RMB3,355RMB8,583 million (31 December 2015: RMB2,375.52018: RMB9,454 million) with annual interest rates ranging from 3.91% to 4.35% (31 December 2018: from 4.13% to 4.35%), and short-term loans borrowed from Tiancheng Financial Leasing amounted to RMB166 million (31 December 2018: Nil) with an annual interest rate ranged from 3.92% to 4.13%(31 December 2015: from 3.92% to 5.32%)4.35%.
3032 | Deferred income tax assets and liabilities |
The deferred income tax assets and liabilities are as follows:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Deferred income tax assets before offsetting | | | 2,432,552 | | | | 2,389,857 | | | 3,844,143 | | | 3,903,331 | | Offset amount | | | (1,168,595 | ) | | | (1,325,466 | ) | | | (1,683,956 | ) | | | (1,620,746 | ) | | | | | | | | | | | | | | | | Deferred income tax assets after offsetting | | | 1,263,957 | | | | 1,064,391 | | | | 2,160,187 | | | | 2,282,585 | | | | | | | | | | | | | | | | | Deferred income tax liabilities before offsetting | | | (3,431,347 | ) | | | (3,819,609 | ) | | (4,821,747 | ) | | (5,486,905 | ) | Offset amount | | | 1,168,595 | | | | 1,325,466 | | | | 1,683,956 | | | | 1,620,746 | | | | | | | | | | | | | | | | | Deferred income tax liabilities after offsetting | | | (2,262,752 | ) | | | (2,494,143 | ) | | | (3,137,791 | ) | | | (3,866,159 | ) | | | | | | | | | | | | | | | | | | | (998,795 | ) | | | (1,429,752 | ) | | | (977,604 | ) | | | (1,583,574 | ) |
The gross movement on the deferred income tax accounts is as follows:
| | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | | | | Beginning of the year | | | (1,429,752 | ) | | | (926,481 | ) | | | (1,380,059 | ) | | (1,583,574 | ) | | (2,373,238 | ) | Business combination (Note 39) | | | (58,929 | ) | | | (1,007,147 | ) | | | - | | | Credited to profit or loss (Note 32) | | | 440,817 | | | | 687,206 | | | | 541,582 | | | Charged to other comprehensive income | | | 87,775 | | | | (198,525 | ) | | | (119,984 | ) | | Business combination | | | - | | | (68,083 | ) | Disposal of other equity instrument investments | | | 167,182 | | | - | | Credited to profit or loss (Note 34) | | | 470,330 | | | 775,820 | | (Charged)/credited to other comprehensive income | | | (9,550 | ) | | 100,966 | | Currency translation differences | | | (38,706 | ) | | | 15,195 | | | | 31,980 | | | | (21,992 | ) | | | (19,039 | ) | | | | | | | | | | | | | | | | | | | | End of the year | | | (998,795 | ) | | | (1,429,752 | ) | | | (926,481 | ) | | | (977,604 | ) | | | (1,583,574 | ) |
3032 | Deferred 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 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 | |
| | | Hedging reserve | | | Fair value gains | | | Amortization of land use rights | | | Provision for impairment loss | | | Depreciation | | | Accrued expenses | | | VAT refunds on purchases of domestically manufactured equipment | | | Unused tax losses | | | Lease liabilities | | | Others | | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 1 January 2018 | | | 5,571 | | | - | | | 13,422 | | | 593,957 | | | 1,032,633 | | | 54,251 | | | 179,576 | | | 561,422 | | | - | | | 1,163,745 | | | 3,604,577 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Business combination | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 2,919 | | | - | | | 27,616 | | | 30,535 | | (Charged)/credited to profit or loss | | | - | | | - | | | (493 | ) | | 43,640 | | | (106,076 | ) | | 1,766 | | | (25,433 | ) | | 210,336 | | | - | | | 61,317 | | | 185,057 | | Credited to other comprehensive income | | | 77,050 | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 77,050 | | Currency translation differences | | | 1,493 | | | - | | | - | | | 992 | | | - | | | - | | | - | | | - | | | - | | | 3,627 | | | 6,112 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31 December 2018 | | | 84,114 | | | - | | | 12,929 | | | 638,589 | | | 926,557 | | | 56,017 | | | 154,143 | | | 774,677 | | | - | | | 1,256,305 | | | 3,903,331 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Charged)/credited to profit or loss | | | - | | | - | | | (493 | ) | | 179,661 | | | (86,022 | ) | | 19,970 | | | (25,433 | ) | | (224,918 | ) | | 965 | | | 18,298 | | | (117,972 | ) | (Charged)/credited to other comprehensive income | | | (24,966 | ) | | 80,359 | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 55,393 | | Currency translation differences | | | 2,228 | | | - | | | - | | | 690 | | | - | | | - | | | - | | | - | | | - | | | 473 | | | 3,391 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31 December 2019 | | | 61,376 | | | 80,359 | | | 12,436 | | | 818,940 | | | 840,535 | | | 75,987 | | | 128,710 | | | 549,759 | | | 965 | | | 1,275,076 | | | 3,844,143 | |
3032 | Deferred income tax assets and liabilities (Continued)(continued) |
Deferred income tax liabilities:
| | 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 | ) |
| | | Hedging reserve | | | Fair value gains | | | Amortization of land use rights | | | Depreciation | | | Power Generation licence | | | Mining rights | | | Territorial water use right | | | Right of use assets | | | Others | | | Total | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 1 January 2018 | | | (24,261 | ) | | (108,625 | ) | | (1,010,606 | ) | | (3,820,274 | ) | | (665,760 | ) | | (129,383 | ) | | (2,409 | ) | | - | | | (216,497 | ) | | (5,977,815 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Disposal of subsidiaries credited to profit or loss | | | | | | | | | | | | (98,618 | ) | | - | | | - | | | - | | | - | | | | | | (98,618 | ) | Credited to profit or loss | | | - | | | - | | | 28,760 | | | 518,843 | | | - | | | - | | | - | | | - | | | 43,160 | | | 590,763 | | Credited/(charged) to other comprehensive income | | | 24,261 | | | (345 | ) | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 23,916 | | Currency translation differences | | | - | | | - | | | (599 | ) | | (7,769 | ) | | (16,783 | ) | | - | | | - | | | - | | | - | | | (25,151 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31 December 2018 | | | - | | | (108,970 | ) | | (982,445 | ) | | (3,407,818 | ) | | (682,543 | ) | | (129,383 | ) | | (2,409 | ) | | - | | | (173,337 | ) | | (5,486,905 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Disposal of other equity instrument investments | | | - | | | 167,182 | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 167,182 | | Credited/(charged) to profit or loss | | | - | | | - | | | 36,507 | | | 412,408 | | | - | | | - | | | - | | | (120 | ) | | 139,507 | | | 588,302 | | Charged to other comprehensive income | | | - | | | (64,943 | ) | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | (64,943 | ) | Currency translation differences | | | - | | | - | | | (738 | ) | | (1,781 | ) | | (22,864 | ) | | - | | | - | | | - | | | - | | | (25,383 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31 December 2019 | | | - | | | (6,731 | ) | | (946,676 | ) | | (2,997,191 | ) | | (705,407 | ) | | (129,383 | ) | | (2,409 | ) | | (120 | ) | | (33,830 | ) | | (4,821,747 | ) |
3032 | Deferred income tax assets and liabilities (Continued)(continued) |
As at 31 December 20162019 and 2015,2018, taxable temporary differences relating to interest in equity method investees amounted to RMB3.39RMB4.04 billion and RMB3.78billion,RMB3.08 billion, respectively. No deferred tax liabilities were recognizedrecognised as at 31 December 20162019 and 20152018 as dividends from investments in associates and joint ventures are exempted from the PRC income tax and the Company has no plan to dispose of any of these investees in the foreseeable future.
As at 31 December 2016 and 2015,2019, taxable temporary differences relating to the undistributed profitinterest of a wholly-owned foreign subsidiarysubsidiaries amounted to RMB3.54 billion and RMB3.78 billion, respectively.RMB2.22 billion. No deferred tax liabilities were recognizedrecognised in respect of the tax that would be payable on the distribution of these retained profitinterests as at 31 December 2016 and 20152019 as the Company controls the dividend policy of the subsidiary, and it has been determined that it is probable that the profitsinterests will not be distributed in the foreseeable future. And the Company has no plan to dispose of any of these investees in the foreseeable future.
In accordance with the accounting policy set out in Note 2(s)2(w), the Company and its subsidiariesGroup did not recognizerecognise 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:follows:
| | As at 31 December | | | | | 2016 | | | 2015 | | | As at 31 December | | | | | | | | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Deductible temporary differences | | | 2,957,316 | | | | 2,940,730 | | | 9,832,527 | | | 5,324,572 | | Unused tax losses | | | 6,669,820 | | | | 6,990,624 | | | | 10,504,590 | | | | 9,581,856 | | | | | | | | | | | | | | | | | Total | | | 9,627,136 | | | | 9,931,354 | | | | 20,337,117 | | | | 14,906,428 | |
The expiry dates of the tax losses of the Company and its subsidiariesGroup for which no deferred income tax assets were recognizedrecognised are summarizedsummarised as follows:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2019 | | | 2018 | | | | | | | | | | | | | | | Year of expiry | | | | | | | | | | | | | 2016 | | | - | | | | 1,504,577 | | | 2017 | | | 1,841,365 | | | | 1,900,325 | | | 2018 | | | 1,122,070 | | | | 1,181,030 | | | 2019 | | | 1,195,811 | | | | 1,284,264 | | | - | | | 1,553,294 | | 2020 | | | 1,061,468 | | | | 1,120,428 | | | 1,452,554 | | | 1,520,528 | | 2021 | | | 1,449,106 | | | | - | | | 1,420,522 | | | 1,438,360 | | 2022 | | | 2,208,635 | | | 2,359,946 | | 2023 | | | 2,472,090 | | | 2,709,728 | | 2024 | | | | 2,950,789 | | | | - | | | | | | | | | | | | | | | | | Total | | | 6,669,820 | | | | 6,990,624 | | | | 10,504,590 | | | | 9,581,856 | |
3133 | Additional financial information to the consolidated statementsstatement of financial position |
As at 31 December 2016,2019, the net current liabilities of the Company and its subsidiariesGroup amounted to approximately RMB93,230RMB80,839 million (2015: RMB90,271(2018: RMB76,407 million). On the same date, total assets less current liabilities were approximately RMB184,643RMB286,630 million (2015: RMB185,030(2018: RMB281,697 million).
| | For the year ended 31 December | | | For the year ended 31 December | | | | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | 2017
| | | | | | | | | | | | | | | | | | | | | Current income tax expense | | | 3,905,968 | | | | 6,386,149 | | | | 6,028,790 | | | 2,481,585 | | | 1,418,993 | | | 1,942,238
| | Deferred income tax (Note 30) | | | (440,817 | ) | | | (687,206 | ) | | | (541,582 | ) | | Deferred income tax (Note 32) | | | | (470,330 | ) | | | (775,820 | )
|
| | (724,712
| )
| | | | | | | | | | | | | | | | | | | | |
| | Total | | | 3,465,151 | | | | 5,698,943 | | | | 5,487,208 | | | | 2,011,255 | | | | 643,173 | | | 1,217,526
| |
No Hong Kong profits tax has been provided as there were no estimated assessable profits in Hong Kong for the year (2015(2018 and 2014: nil)2017: 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 | % |
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 2016, 20152019 and 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.2018.
The income tax rate applicable to Singapore subsidiaries is 17% (2015(2018: 17%). The Company's overseas subsidiary in Pakistan engaged in the power generation business is entitled to an income tax exemption according to Pakistani 2015 Fiscal Act. Another subsidiary located in Pakistan engaged in the provision of maintenance services. Before 1 July 2019, the subsidiary’s tax liability would be calculated as the amount higher of (i) normal tax at the rate of 29% of taxable income; (ii) Alternative Corporate Tax (ACT) at the rate of 17% of accounting profit; and 2014: 17%).(iii) minimum tax deductible at 8% of the revenue. If the income tax calculated is above normal tax at the rate of 29%, it would be carried forward to subsequent years for settlement against the liabilities of following years. The carry forward time period is 5 years in case of minimum tax and 10 years in case of ACT. However, from 1 July 2019, if the minimum tax liability is above the normal tax calculated, it cannot be carried forward to subsequent years.
The reconciliation of the effective income tax rate from the notional income tax rate is as follows:
| | For the year ended 31 December | | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | PRC statutory enterprise income tax rate | | | 25.00 | % | | | 25.00 | % | | | 25.00 | % | Effect of different tax rates of certain subsidiaries | | | (7.33 | %) | | | (3.56 | %) | | | 1.39 | % | Utilisation of previously unrecognised tax losses and deductible temporary differences | | | (6.00 | %) | | | (2.66 | %) | | | - | | Unrecognized tax losses for the year | | | 27.76 | % | | | 29.49 | % | | | 18.45 | % | Unrecognized deductible temporary differences | | | 34.68 | % | | | 5.92 | % | | | 6.04 | % | Effect of non-taxable income | | | (10.44 | %) | | | (28.53 | %) | | | (12.37 | %) | Effect of non-deductible expenses | | | 3.18 | % | | | 11.22 | % | | | 7.05 | % | Others | | | (2.38 | %) | | | (4.27 | %) | | | (2.10 | %) | | | | | | | | | | | | | | Effective tax rate | | | 64.47 | % | | | 32.61 | % | | | 43.46 | % |
The basic earnings per share is calculated by dividing the consolidated net profit attributable to the equity holders of the Company excluding cumulative distribution of other equity instruments by the weighted average number of the Company’s outstanding ordinary shares during the year:
33 | Earnings per share (Continued)
|
| | | For the year ended 31 December | | | | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | | | | | | | | | | Consolidated net profit attributable to equity holders of the Company | | | 8,520,427 | | | | 13,651,933 | | | | 10,757,317 | | | 766,345 | | | 734,435 | | | 1,579,836 | | Less: cumulative distribution of other equity instruments | | | | 685,922 | | | | 342,349 | | | | 68,600 | | | | | | | | | | | | | Consolidated net profit attributable to ordinary shareholders of the Company | | | | 80,423 | | | | 392,086 | | | | 1,511,236 | | | | | | | | | | | | | Weighted average number of the Company’s outstanding ordinary shares (’000)* | | | 15,200,383 | | | | 14,485,383 | | | | 14,085,800 | | | | 15,698,093 | | | | 15,283,335 | | | | 15,200,383 | | | | | | | | | | | | | Basic and diluted earnings per share (RMB) | | | 0.56 | | | | 0.94 | | | | 0.76 | | | | 0.01 | | | | 0.03 | | | | 0.10 | |
*Weighted average number of ordinary shares:
| | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | 2017 | | | | | ’000 | | | | ’000 | | | | ’000 | | | ’000 | | | ’000 | | | ’000 | | | | | | | | | | | | | | | | | | | | | | | | Issued ordinary shares at 1 January | | | 15,200,383 | | | | 14,420,383 | | | | 14,055,383 | | | 15,698,093 | | | 15,200,383 | | | 15,200,383 | | Effect of share issue (Note 20) | | | - | | | | 65,000 | | | | 30,417 | | | Effect of share issue | | | | - | | | | 82,952 | | | | - | | | | | | | | | | | | | | | | | | | | | | | | Weighted average number of ordinary shares at 31 December | | | 15,200,383 | | | | 14,485,383 | | | | 14,085,800 | | | | 15,698,093 | | | | 15,283,335 | | | | 15,200,383 | |
There was no dilutive effect on earnings per share since the Company had no dilutive potential ordinary shares for the years ended 31 December 2016, 20152019 and 2014.2018.
3436 | Notes to consolidated statement of cash flows |
Bank balances and cash comprisedcomprise the following:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | | | | | | | | | | Total bank balances and cash | | | 7,881,630 | | | | 7,537,813 | | | | 12,608,192 | | | 13,306,139 | | | 15,832,788 | | | 9,364,823 | | Add: Cash and cash equivalents transferred to disposal group | | | - | | | 15,104 | | | - | | Less: Restricted cash | | | 71,129 | | | | 59,563 | | | | 369,825 | | | | 862,881 | | | | 430,210 | | | | 82,433 | | | | | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents as at year end | | | 7,810,501 | | | | 7,478,250 | | | | 12,238,367 | | | | 12,443,258 | | | | 15,417,682 | | | | 9,282,390 | |
The bank balances and cash of the Company and its subsidiariesGroup are denominated in the following currencies:
| | As at 31 December | | | As at 31 December | | | | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | | | | | | | | | | RMB | | | 6,691,911 | | | | 5,847,363 | | | | 8,346,060 | | | 10,649,660 | | | 14,389,435 | | | 8,213,100 | | S$ (RMB equivalent) | | | 869,591 | | | | 1,130,356 | | | | 1,064,479 | | | 1,243,481 | | | 927,395 | | | 835,995 | | US$ (RMB equivalent) | | | 319,944 | | | | 559,761 | | | | 753,061 | | | 716,233 | | | 482,666 | | | 315,535 | | JPY (RMB equivalent) | | | 184 | | | | 205 | | | | 4 | | | HK$ (RMB equivalent) | | | - | | | | 128 | | | | 2,444,588 | | | Others | | | | 696,765 | | | | 33,292 | | | | 193 | | | | | | | | | | | | | | | | | | | | | | | | Total | | | 7,881,630 | | | | 7,537,813 | | | | 12,608,192 | | | | 13,306,139 | | | | 15,832,788 | | | | 9,364,823 | |
During the year, the Group had non-cash additions to right-of-use assets and lease liabilities of RMB2,234 million and RMB2,234 million, respectively, in respect of lease arrangements (2018 and 2017: Nil).
There is no materialThe table below details changes in the Group’s liabilities from financing activities, including both cash and non-cash investing andchanges. Liabilities arising from financing transactionsactivities are liabilities for which cash flows were, or future cash flows will be, classified in the years ended 31 December 2016, 2015 and 2014.Group’s consolidated statement of cash flows as cash flows from financing activities:
3536 | Notes to consolidated statement of cash flows (continued) |
Items | | Loans (Note 25,31) | | | Loans in Disposal group held for sale (Note 20) | | | Bonds (Note 26,30) | | | Accrued Interests (Note 28) | | | Cumulative distribution of other equity instrument (Note 24) | | | Finance leases payables/ Lease liabilities (Note 27,43) | | | Dividends payable | | | | | | | | | | | | | | | | | | | | | | | | As at 31 December 2018 | | | 211,207,782 | | | | 297,400 | | | | 41,519,596 | | | | 1,152,767 | | | | 8,846 | | | | 1,442,174 | | | | 1,267,833 | | Effect of adoption of IFRS 16 | | | - | | | | | | | | - | | | | - | | | | - | | | | 774,618 | | | | - | | As at 1 January 2019 (restated) | | | 211,207,782 | | | | 297,400 | | | | 41,519,596 | | | | 1,152,767 | | | | 8,846 | | | | 2,216,792 | | | | 1,267,833 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (a) Asset acquisitions | | | 9,418 | | | | - | | | | - | | | | - | | | | - | | | | 602,257 | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (b) Changes from financing cash flows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Proceeds from new loans | | | 119,800,321 | | | | 498,000 | | | | - | | | | - | | | | - | | | | - | | | | - | | Repayment of loans | | | (130,703,965 | ) | | | (213,400 | ) | | | - | | | | - | | | | - | | | | - | | | | - | | Proceeds from new bonds | | | - | | | | - | | | | 35,300,000 | | | | - | | | | - | | | | - | | | | - | | Repayment of bonds | | | - | | | | - | | | | (36,500,000 | ) | | | - | | | | - | | | | - | | | | - | | Payment of lease liabilities | | | - | | | | - | | | | - | | | | - | | | | - | | | | (488,015 | ) | | | - | | Interest paid | | | - | | | | - | | | | (291,040 | ) | | | (10,732,737 | ) | | | (617,662 | ) | | | - | | | | - | | Dividends paid to shareholders of the Company | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (1,569,809 | ) | Dividends paid to Non-controlling interests of the subsidiaries | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (1,436,574 | ) | Others | | | - | | | | - | | | | (29,075 | ) | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (c) Exchange adjustments | | | 811,524 | | | | - | | | | - | | | | - | | | | - | | | | (23,673 | ) | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (e) Other changes: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | New leases | | | - | | | | - | | | | - | | | | - | | | | - | | | | 2,233,736 | | | | - | | Interest expenses | | | - | | | | - | | | | 314,280 | | | | 10,276,865 | | | | - | | | | 171,573 | | | | - | | Accrued cumulative distribution of other equity instrument | | | - | | | | - | | | | - | | | | - | | | | 685,922 | | | | - | | | | - | | Capitalised borrowing costs | | | - | | | | - | | | | - | | | | 579,808 | | | | - | | | | - | | | | - | | Dividends relating to 2018 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 2,929,586 | | Disposal group held for sale
| | | -
| | | | (582,000 | ) | | | -
| | | | -
| | | | -
| | | | -
| | | | -
| | Others | | | 17,000 | | | | - | | | | (1,303 | ) | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at 31 December 2019 | | | 201,142,080 | | | | - | | | | 40,312,458 | | | | 1,276,703 | | | | 77,106 | | | | 4,712,670 | | | | 1,191,036 | |
36 | Notes to consolidated statement of cash flows (continued) |
Items | | Loans (Note 25,31) | | | Bonds (Note 26,30) | | | Accrued Interests (Note 28) | | | Cumulative distribution of other equity instrument
(Note 24) | | | Finance leases payables (Note 27,43) | | | Interest rate swap contracts (liabilities) (Note 14) | | | | | | | | | | | | | | | | | | | | | As at 1 January 2018 | | | 205,380,764 | | | | 31,059,223 | | | | 947,302 | | | | - | | | | 1,600,106 | | | | 130,643 | | | | | | | | | | | | | | | | | | | | | | | | | | | (a) Business combination | | | 11,983,707 | | | | - | | | | 16,798 | | | | - | | | | 249,161 | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | (b) Changes from financing cash flows: | | | | | | | | | | | | | | | | | | | | | | | | | Proceeds from new bank loans | | | 126,001,437 | | | | - | | | | - | | | | - | | | | - | | | | - | | Repayment of bank loans | | | (132,293,601 | ) | | | - | | | | - | | | | - | | | | - | | | | - | | Proceeds from new bonds | | | - | | | | 54,000,000 | | | | - | | | | - | | | | - | | | | - | | Repayment of bonds | | | - | | | | (43,500,000 | ) | | | - | | | | - | | | | - | | | | - | | Capital element of finance lease rentals paid | | | - | | | | - | | | | - | | | | - | | | | (549,169 | ) | | | - | | Interest element of finance lease rentals paid | | | - | | | | - | | | | - | | | | - | | | | (87,857 | ) | | | - | | Interest paid | | | - | | | | (643,356 | ) | | | (10,011,011 | ) | | | (333,504 | ) | | | - | | | | - | | Others | | | (20,466 | ) | | | (73,562 | ) | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | (c) Exchange adjustments | | | 415,219 | | | | - | | | | 2,959 | | | | - | | | | (242 | ) | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | (d) Changes in fair value | | | - | | | | - | | | | - | | | | - | | | | - | | | | 18,474 | | | | | | | | | | | | | | | | | | | | | | | | | | | (e) Other changes: | | | | | | | | | | | | | | | | | | | | | | | | | New finance leases | | | - | | | | - | | | | - | | | | - | | | | 34,911 | | | | - | | Interest expenses | | | - | | | | 686,017 | | | | 9,701,316 | | | | - | | | | 99,079 | | | | - | | Accrued cumulative distribution of other equity instrument | | | - | | | | - | | | | - | | | | 342,350 | | | | - | | | | - | | Capitalised borrowing costs | | | - | | | | - | | | | 495,818 | | | | - | | | | - | | | | - | | Transfer to a disposal group held for sale | | | (297,400 | ) | | | - | | | | (415 | ) | | | - | | | | - | | | | - | | Others | | | 38,122 | | | | (8,726 | ) | | | - | | | | - | | | | 96,185 | | | | - | | As at 31 December 2018 | | | 211,207,782 | | | | 41,519,596 | | | | 1,152,767 | | | | 8,846 | | | | 1,442,174 | | | | 149,117 | |
The total cash outflow for leases included in the consolidated statement of cash flows is as follows:
| | For the year ended 31 December 2019 | | Within financing activities* | | | (488,015 | ) | Total | | | (488,015 | ) |
* During the year, the principal portion of lease liabilities paid was RMB316 million.
37 | Related party balances and transactions |
The related parties of the Company and its subsidiariesGroup that had transactions with the Company and its subsidiariesGroup are as follows:
Names of related parties | | Nature of relationship | | | | Huaneng Group | | Ultimate parent company | HIPDC | | Parent company | Huaneng Energy & Communications Holdings Co., Ltd.Sichuan Hydropower | An associate of the Company and its subsidiaries | | Subsidiariesalso a subsidiary of Huaneng GroupGroup* | Huaneng Property Co., Ltd.Hanfeng Power | An associate of the Company and its subsidiaries | | Subsidiaries of Huaneng Group | Xi’an Thermal and its subsidiaries | | Subsidiaries of Huaneng Group | Huaneng Group Technology Innovation Center | | Aalso a subsidiary of Huaneng Group | Huaneng Hulunbeier Energy Development(Tianjin) Coal Gasification Power Generation Co., Ltd. | An associate of the Company Ltd. | | Aand also a subsidiary of Huaneng Group | Gansu Huating CoalTiancheng Financial Leasing | An associate of the Company and Power Co., Ltd. | | A subsidiary of Huaneng Group | Alltrust Insurance Co., Ltd. | | A subsidiary of Huaneng Group | North United Power Co., Ltd. and its subsidiaries | | Subsidiaries of Huaneng Group | Huaneng Group Clean Energy Technology Research Institute Co., Ltd. | | Aalso a subsidiary of Huaneng Group | Huaneng Renewables Corporation LimitedShidao Bay Nuclear Power Development Co., Ltd. | | AAn associate of the Company and also a subsidiary of Huaneng Group | Huaneng ShandongXiapu Nuclear Power LimitedCo., Ltd. | An associate of the Company and its subsidiaries | | Subsidiaries of Huaneng Group | Huaneng Carbon Assets Management Company Limited | | Aalso a subsidiary of Huaneng Group | Huaneng Huajialing Wind Power Co.,Finance | An associate of the Company and also a subsidiary of Huaneng Group | Shanghai Leading Energy Shipping Ltd. | | AAn associate of the Company and also a subsidiary of Huaneng Group | Huaneng Group Hong Kong Limited Company | | A subsidiary of Huaneng Group | Great Wall SecuritiesSupply Chain Platform Technology Co., Ltd.( “Great Wall Securities”) | | A subsidiary of Huaneng Group | Changping Huaneng Training Center | | A subsidiary of Huaneng Group | Huangeng 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 | Rizhao Power Company | and its subsidiaries
| An associate of the Company and also a subsidiary of Huaneng Group | Huaneng Group Fuel Company and its subsidiaries | | An associateAssociates of the Company and also a subsidiarysubsidiaries of Huaneng Group | Tiancheng Financial Leasing | | An associate of the Company and also a subsidiary of Huaneng Group | Shidaowan NuclearJilin Zhanyu Wind Power Asset Management Co., Ltd. | | An associate of the 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 |
35 | Related party balances and transactions (Continued) |
Names of related parties | | Nature of relationship | | | | Hainan Nuclear Power Co., Ltd. | | An associate of the Company | Chongqing Huaneng (Tianjing) Coal Gasification Power Generation Co., Ltd. | Lime Company Limited | An associate of the Company and also a subsidiary of Huaneng Group | Chongqing Huaneng Lime Company Limited | Shanxi Transition and Comprehensive Reform District.Electricity Distribution Co., Ltd. | An associate of a subsidiarythe Company | Gucheng Yingdong Electricity Sales Co., Ltd. | An associate of the Company | Hainan Nuclear | An associate of the Company | Yangquan Coal Industry Group Huaneng Coal Power Investment Co., Ltd. | An associate of the Company | Shanghai Time Shipping | | A joint venture of the Company | Jiangsu Nantong Power | A joint venture of the Company | Suzhou Sugao Renewables Service Co. Ltd. | A joint venture of the Company | Huaneng Yingkou Port Limited Liability Company | A joint venture of the Company | Luyi Power | A joint venture of the Company | Hong Kong Energy and its subsidiaries (Note i)
| Joint ventures of the Company | Huaneng Group Clean Energy Technology Research Institute Co., Ltd. | A subsidiary of Huaneng Group | Huaneng Group Hong Kong Limited Company | A subsidiary of Huaneng Group | Beijing Changping Huaneng Training Center | A subsidiary of Huaneng Group | North United Power Co., Ltd. and its subsidiaries | Subsidiaries of Jiangsu Province Guoxin AssetHuaneng Group | Huaneng Hulunbuir Energy Development Company Ltd.and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Tendering Co., Ltd. | A subsidiary of Huaneng Group | Huaneng Ningxia Energy Company Ltd. | A subsidiary of Huaneng Group | Huaneng Renewables Corporation Limited and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Songyuan Power Co., Ltd. | A subsidiary of Huaneng Group | Huaneng Nuclear Power Development Company Ltd. | A subsidiary of Huaneng Group |
37 | Related party balances and transactions (continued) |
Names of related parties | Nature of relationship | Huaneng Lancangjiang Hydropower Co., Inc.and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Coal Business Sector Co., Ltd. and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Gansu Energy Development Company Ltd.and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Baishan Coal Gangue Power Generation Co., Ltd. | A subsidiary of Huaneng Group | Huaneng Carbon Assets Management Company Limited | A subsidiary of Huaneng Group | Huaneng Qinghai Power Generation Co., Ltd. and its subsidiaries | A subsidiary of Huaneng Group | Huaneng Property Co., Ltd. and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Energy & Communications Holdings Co., Ltd. and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Tibet Yarlung Zangbo River Hydropower Development & Investment Company Ltd. and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Xinjiang Energy Development Company Ltd. and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Capital Services and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Shaanxi Power Generation Limited and its subsidiaries | Subsidiaries of Huaneng Group | Huaneng Group Limited Company(“Jiangsu Guoxin”)**Technology Innovation Center | A subsidiary of Huaneng Group | Alltrust Insurance Co., Ltd. | Other related partyA subsidiary of Huaneng Group | Xi’an Thermal and its subsidiaries | Subsidiaries of Huaneng Group | Great Wall Securities Co., Ltd. (Great Wall Securities) | A subsidiary of Huaneng Group | Huaneng Hainan Industry Co.,Ltd. | A subsidiary of Huaneng Group | Huaneng Integrated Industries Management Co., Ltd. | A subsidiary of Huaneng Group | Huangtai #8 Power Plant | An investee with significant influence | Other government-related enterprises*** | | Related parties of the Company |
| * | Transactions with subsidiaries of Huaneng Group which also are associates of the Company and its subsidiariesGroup are presented as transactions with subsidiaries of Huaneng Group for note 35(a)Note 37(a) and 35(b)37(b). |
| ** | Before 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 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 subsidiariesGroup (“other government-related enterprises”). |
Note i: Hong Kong Energy and its subsidiaries were changed from joint ventures to subsidiaries of the Group since 31 December 2018.
The majority of the business activities of the Company and its subsidiariesGroup are conducted with other government-related enterprises. For the purpose of the disclosure of the related party balances and transactions, disclosure, the Company and its subsidiaries haveGroup has 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 privatizationprivatisation programs. Nevertheless, management believes that all material related party balances and transactions with other government-related enterprises have been adequately disclosed.
37 | Related party balances and transactions (continued) |
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 subsidiariesGroup and their related parties during the year and significant balances arising from related party transactions as at the year end. F-94
All transactions with related parties were conducted at prices and on terms mutually agreed by the parties involved, and are based on normal commercial terms or better and with reference to the prevailing local market conditions.
35 | Related party balances and transactions (Continued) |
| (a) | Related party balances |
| (i) | Cash deposits in related parties |
| | As at 31 December | | | | 2016 | | | 2015 | | Deposits in Huaneng Finance | | | | | | | - Savings deposit | | | 5,155,000 | | | | 4,599,922 | | Deposits in Great Wall Securities | | | | | | | | | - Savings deposit | | | 2 | | | | - | | | | | | | | | | | Total | | | 5,155,002 | | | | 4,599,922 | |
| | As at 31 December | | | | 2019 | | | 2018 | | Deposits in Huaneng Finance - Savings deposit | | | 9,529,586 | | | | 10,914,633 | |
For the year ended 31 December 2016,2019, the annual interest rates for these savings deposits placed with Huaneng Finance and Great Wall Securities ranged from 0.35% to 1.35% (2015:(2018: from 0.35% to 1.35%).
| (ii) | As described in Note 2325 and 29,31, certain loans of the Company and its subsidiariesGroup were borrowed from Huaneng Group, HIPDC, Huaneng Finance, Xi’an Thermal and Tiancheng Financial Leasing. |
| (iii) | Except for those disclosed in Note 35(a)(ii),25 and 31, the majority of the balances with Huaneng Group, HIPDC, subsidiaries of Huaneng Group, 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 20162019 and 2015,2018, no provision is made on receivable balances from these parties. |
Accounts receivable, other receivables and assets and other non-current assets comprised the following balances due from related parties:
| | As at 31 December | | | | | 2016 | | | 2015 | | | As at 31 December | | | | | | | | | | 2019 | | | 2018 | | Due from Huaneng Group | | | 708 | | | | 1,700 | | | 464,087 | | | 1,010,023 | | Due from HIPDC | | | - | | | 2,850 | | Due from joint ventures | | | 806,112 | | | | 421,884 | | | 106,251 | | | 122,775 | | Due from subsidiaries of Huaneng Group | | | 319,224 | | | | 61,876 | | | Due from other related parties | | | - | | | | 26,745 | | | Due from subsidiaries of | | | | | | | | Huaneng Group | | | 125,288 | | | 125,777 | | Due from Huangtai #8 | | | | | | | | Power Plant | | | | 792,136 | | | | 839,067 | | | | | | | | | | | | | | | | | Total | | | 1,126,044 | | | | 512,205 | | | | | | | |
37 | Related party balances and transactions (continued) |
| (a) | Related party balances (continued) |
| (iv) | Accounts payable and other liabilities comprisedand other non-current liabilities comprise the following balances due to related parties: |
| | As at 31 December | | | | 2016 | | | 2015 | | | | | | | | | Due to Huaneng Group | | | 12,232 | | | | 25,819 | | Due to HIPDC | | | 14,183 | | | | 89,589 | | Due to associates | | | 263,154 | | | | 9,652 | | Due to a joint venture | | | 325,590 | | | | 308,308 | | Due to subsidiaries of Huaneng Group | | | 4,145,595 | | | | 2,451,528 | | | | | | | | | | | Total | | | 4,760,754 | | | | 2,884,896 | |
| | As at 31 December | | | | 2019 | | | 2018 | | Due to Huaneng Group | | | 285,725 | | | | 284,244 | | Due to HIPDC | | | 13,430 | | | | 13,628 | | Due to joint ventures | | | 120,153 | | | | 97,431 | | Due to associates | | | - | | | | 8,962 | | Due to subsidiaries of Huaneng Group | | | 5,762,265 | | | | 4,528,500 | | | | | | | | | | | Total | | | | | | | | |
35 | Related party balances and transactions (Continued) |
| (a) | Related party balances (Continued) |
| (v) | As at 31 December 2016,2019, included in long-term loans (including current portion) and short-term loans are loans payable to other government-related enterprises amounting to RMB130RMB186.8 billion (2015: RMB126(2018: RMB208.4 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 payablespayable and other payables arising from the purchases of coal and property, plant and equipment construction and related laborlabour service provided by other government-related enterprises. Except for bank deposits, these balances are unsecured and the majority of the balances are receivable/repayable is within one year.
| (vi) | As at 31 December 2016, prepayment for construction materials2019, lease liabilities due to subsidiaries of Huaneng Group amounted to RMB67RMB1,730 million (2015: RMB23 million). |
37 | Related party balances and transactions (continued) |
| (b) | Related party transactions |
| (i) | Procurement of goods and receiving services |
| | For the year ended 31 December | | | For the year ended 31 December | | | | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | | | | | | | | | | Huaneng Group | | | | | | | | | | | | | | | | | | | Other purchases | | | 570 | | | 506 | | | 446 | | | | | | | | | | | | | HIPDC | | | | | | | | | | | Technical services and engineering contracting services | | | - | | | | 50 | | | | - | | | - | | | 7 | | | - | | Other purchases | | | 451 | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | | | | | Subsidiaries of Huaneng Group | | | | | | | | | | | | | | | | | | | | | | Purchase of coal and transportation services | | | 17,212,984 | | | | 16,575,700 | | | | 20,019,180 | | | 32,623,831 | | | 23,873,672 | | | 19,945,752 | | Technical services and engineering contracting services | | | 1,055,251 | | | | 769,176 | | | | 690,984 | | | 1,776,442 | | | 1,121,516 | | | 1,024,369 | | Purchase of equipment | | | 483,058 | | | | 302,387 | | | | 418,959 | | | 52,802 | | | 176,506 | | | 294,372 | | Purchase of power generation quota | | | 195,528 | | | | 287,779 | | | | 309,791 | | | Entrusting other parties for power generation | | | - | | | | - | | | | 38,855 | | | Purchase of heat | | | 61,080 | | | 69,527 | | | 52,791 | | Other purchases | | | 6,472 | | | | 7,073 | | | | 8,087 | | | 46,627 | | | 260 | | | 716 | | | | | | | | | | | | | | | | | | | | | | | | Joint ventures of the Company | | | | | | | | | | | | | | Joint ventures of the Group | | | | | | | | | | | Purchase of coal and transportation services | | | 2,150,844 | | | | 1,816,954 | | | | 1,816,954 | | | 835,462 | | | 1,798,673 | | | 2,054,209 | | Entrusting other parties for power generation | | | - | | | | - | | | | 27,985 | | | - | | | 10,127 | | | 28,953 | | | | | | | | | | | | | | | | | | | | | | | | An associate of the Company | | | | | | | | | | | | | | Associates of the Group | | | | | | | | | | | Other purchases | | | 43,808 | | | | 44,591 | | | | 69,911 | | | 529 | | | 36,826 | | | 27,732 | | Technical services and engineering contracting services | | | - | | | 3,812 | | | - | | Purchase of equipment | | | 38,387 | | | - | | | - | | Purchase of coal and transportation services | | | 181,479 | | | - | | | - | |
3537 | Related 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 | |
| (ii) | Sales of goods and providing services |
| | For the year ended 31 December | | | For the year ended 31 December | | | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | | Huaneng Group | | | | | | | | | | | Service provided | | | 31,756 | | | 15,472 | | | 907 | | | | | | | | | | | | | HIPDC | | | | | | | | | | | Service provided | | | 124 | | | 1,067 | | | 520 | | Other sales | | | - | | | 2,534 | | | - | | | | 2016 | | | 2015 | | | 2014 | | | | | | | | | | | Subsidiaries of Huaneng Group | | | | | | | | | | | | | | | | | | | Sales of power generation quota | | | 1,165 | | | | 135,085 | | | | - | | | - | | | 3,065 | | | - | | Sales of goods | | | - | | | 637,059 | | | 1,114,347 | | Other sales | | | 189,914 | | | | 40,780 | | | | 22,892 | | | 2,922 | | | 11,399 | | | 15,247 | | Service provided | | | 31,135 | | | | 50,627 | | | | 56,517 | | | 68,052 | | | 45,677 | | | 25,229 | | Provision of entrusted power generation | | | - | | | - | | | 58,639 | | | | | | | | | | | | | | | | | | | | | | | | Joint ventures of the Company | | | | | | | | | | | | | | Joint ventures of the Group | | | | | | | | | | | Service provided | | | 59,049 | | | | 133,332 | | | | - | | | 52,602 | | | 392,744 | | | 319,844 | | Sales of goods | | | 9,490 | | | | 23,003 | | | | 24,551 | | | Other sales | | | 25,102 | | | 45,997 | | | 407,697 | | | | | | | | | | | | | | | | | | | | | | | | Other related party | | | | | | | | | | | | | | Provision of entrusted power generation | | | - | | | | 33,129 | | | | 29,232 | | | Huangtai #8 Power Plant | | | | | | | | | | | Service provided | | | - | | | 2,830 | | | 2,802 | |
37 | Related party balances and transactions (continued) |
| (b) | Related party transactions (continued) |
| (iii) | Other related party transactions |
| | For the year ended 31 December | | | For the year ended 31 December | | | | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | | | | | | | | | | (1) Rental charge on leasehold | | | | | | | | | | | (1) Rental charge paid | | | | | | | | | | | HIPDC | | | 157,264 | | | | 161,941 | | | | 148,603 | | | 104,929 | | | 107,712 | | | 106,885 | | Subsidiaries of Huaneng Group | | | 128,932 | | | | 130,591 | | | | 125,807 | | | 61,076 | | | 123,472 | | | 141,542 | | A joint venture of the Group | | | - | | | 589 | | | 2,128 | | | | | | | | | | | | | | | | | | | | | | | | (2) Rental income from leasehold | | | | | | | | | | | | | | A joint venture of the Company | | | 7,750 | | | | 10,759 | | | | 3,440 | | | (2) Rental income received | | | | | | | | | | | A joint venture of the Group | | | 7,448 | | | 7,448 | | | 7,448 | | Subsidiaries of Huaneng Group | | | 5,724 | | | | 9,115 | | | | 9,342 | | | 2,400 | | | 3,609 | | | 2,509 | | | | | | | | | | | | | (3) Loans (repaid to)/received from | | | | | | | | | | | Subsidiaries of Huaneng Group | | | (11,369 | ) | | (113,430 | ) | | - | | A joint venture of the Group | | | 150,000 | | | - | | | - | | | | | | | | | | | | | (4) Interest expense on loans | | | | | | | | | | | Huaneng Group | | | 30,224 | | | 32,037 | | | 33,481 | | HIPDC | | | - | | | - | | | 10 | | A joint venture of the Group | | | 4,374 | | | - | | | - | | Subsidiaries of Huaneng Group | | | 515,532 | | | 524,716 | | | 589,012 | | | | | | | | | | | | | (5) Interest income on loans | | | | | | | | | | | A joint venture of the Group | | | 3,747 | | | 3,540 | | | 3,329 | | An associate of the Group | | | - | | | 6,639 | | | 917 | | Subsidiaries of Huaneng Group | | | - | | | - | | | 4,344 | | | | | | | | | | | | | (6) Capital injection from a subsidiary of Huaneng Group | | | | | | | | | | | A subsidiary of Huaneng Group | | | 227,569 | | | 379,906 | | | 274,752 | | | | | | | | | | | | | (7) Capital injection to | | | | | | | | | | | Subsidiaries of Huaneng Group | | | 94,770 | | | 320,680 | | | - | | Associates of the Group | | | 43,427 | | | 142,579 | | | 52,200 | | Joint ventures of the Group | | | 175,000 | | | - | | | 249,716 | |
3537 | Related party balances and transactions (Continued)(continued) |
| (b) | Related party transactions (Continued)(continued) |
| (iii) | Other related party transactions (Continued)(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 | | | | - | |
| | For the year ended 31 December | | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | (8) Pre-construction cost paid by | | | | | | | | | | A subsidiary of Huaneng Group | | | - | | | | 90 | | | | 23,529 | | A joint venture of the Group | | | - | | | | - | | | | 179 | | | | | | | | | | | | | | | (9) Finance lease payments received from | | | | | | | | | | | | | A subsidiary of Huaneng Group | | | - | | | | 57,676 | | | | - | | | | | | | | | | | | | | | (10) Interest expense of finance lease | | | | | | | | | | | | | Subsidiaries of Huaneng Group | | | 32,127 | | | | 30,720 | | | | 22,621 | | | | | | | | | | | | | | | (11) Entrusted management fee | | | | | | | | | | | | | Huaneng Group | | | 12,340 | | | | 15,000 | | | | 13,453 | | | | | | | | | | | | | | | (12) Trusteeship management income | | | | | | | | | | | | | Huaneng Group | | | 4,821 | | | | 5,110 | | | | 1,518 | | | | | | | | | | | | | | | (13) Net proceeds received from an investee with significant influence | | | | | | | | | | | | | Huangtai #8 Power Plant | | | 41,328 | | | | 60,246 | | | | 72,920 | | | | | | | | | | | | | | | (14) Interest income from a finance lease | | | | | | | | | | | | | Huangtai #8 Power Plant | | | 21,253 | | | | 22,497 | | | | 11,626 | | | | | | | | | | | | | | | (15) Collateral received under a loan agreement | | | | | | | | | | | | | An associate of the Group | | | - | | | | 96,902 | | | | - | | | | | | | | | | | | | | | (16) Profit compensation received | | | | | | | | | | | | | Huaneng Group | | | 550,832 | | | | 615,013 | | | | - | | | | | | | | | | | | | | | (17) Finance lease to investee with significant influence | | | | | | | | | | | | | Huangtai #8 Power Plant | | | - | | | | - | | | | 86,946 | | | | | | | | | | | | | | |
| | 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 | |
3537 | Related party balances and transactions (Continued)(continued) |
| (c)(b) | Guarantees (Continued)Related party transactions (continued) |
| (iii) | Other related party transactions (continued) |
(18) Disposal consideration
In 2019, Laizhou Wind Power was sold to Taishan Power. Please refer to Note 20 for details of the disposal consideration.
Transactions with government-related enterprises
For the years ended 31 December 2016, 20152019 and 2014,2018, the Company and its domestic subsidiariesGroup sold substantially all theirits products to local government-related power grid companies. Please refer to Note 5 for details of sales information to major power grid companies.
For the years ended 31 December 2016, 20152019 and 2014,2018, other collectively-significant transactions with government-related enterprises also include a large portion of domestic fuel purchases, property, plant and equipment construction and related laborlabour employed.
| | As at 31 December | | | | 2019 | | | 2018 | | | | | | | | | (i) Long-term loans guaranteed by | | | | | | | - Huaneng Group | | | 2,335,611 | | | | 3,028,109 | | - HIPDC | | | 2,014,800 | | | | 2,057,200 | | (ii) Short-term loans guaranteed by | | | | | | | | | - Huaneng Group | | | 687,470 | | | | - | |
| (d) | Pre-tax benefits and social insurance of key management personnel |
| | For the year ended 31 December | | | For the year ended 31 December | | | | 2016 | | | 2015 | | | 2014 | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | | | | | | | | | | Salaries | | | 8,225 | | | | 9,064 | | | | 8,546 | | | 6,881 | | | 6,754 | | | 7,676 | | Pension | | | 1,521 | | | | 1,470 | | | | 1,350 | | | | 1,262 | | | | 1,292 | | | | 1,511 | | | | | | | | | | | | | | | | | | | | | | | | Total | | | 9,746 | | | | 10,534 | | | | 9,896 | | | | 8,143 | | | | 8,046 | | | | 9,187 | |
37 | Related party balances and transactions (continued) |
| (e) | Related party commitments |
Related party commitments which were contracted but not recognizedrecognised in the consolidated statement of financial position as at the end of reporting period are as follows:follows :
| | As at 31 December | | | | 2016 | | | 2015 | | | | | | | | | Subsidiaries of Huaneng Group | | | 439,571 | | | | 405,208 | |
| | As at 31 December | | | | 2019 | | | 2018 | | Subsidiaries of Huaneng Group | | | | | | | | |
| (ii) | Investment commitment (Note 40) |
| | As at 31 December 2019 | | A joint venture | | | 31,116 | |
| (iii) | Fuel purchase and transportation commitments |
| | As at 31 December | | | | | 2016 | | | 2015 | | | As at 31 December | | | | | | | | | | 2019 | | | 2018 | | Subsidiaries of Huaneng Group | | | 963,306 | | | | 1,343,875 | | | 2,174,241 | | | 1,382,058 | | A joint venture of the Company | | | 291,032 | | | | 200,440 | | | A joint venture of the Group | | | | 143,614 | | | | 358,441 | | | | | | | | | | | | | | | | | Total | | | 1,254,338 | | | | 1,544,315 | | | | 2,317,855 | | | | 1,740,499 | |
| (iv) | Operating lease commitments (Note i) |
| | As at 31 December 2018 | | Subsidiaries of Huaneng Group | | | 126,492 | | HIPDC | | | 55,973 | | | | | | | Total | | | | |
Note i: |
| Upon adoption of IFRS 16 on 1 January 2019, the operating leases have been recognised as right-of-use assets. Please refer to note 43 for other details of right-of-use assets. |
| (f) | Applicability of the Listing Rules relating to connected transactions |
F-99The related party transactions with HIPDC, Huaneng Group and its subsidiaries in respect of the purchase of coal and transportation services, equipment, technical services and engineering contracting services, leasing rental and interest expenses incurred by the Group as disclosed in note 37(b), constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Listing Rules. The disclosures required by Chapter 14A of the Listing Rules are provided in the section “Connected transactions” of the Director’s Report of the Group for the year ended 31 December 2019.
35 | Related party balances and transactions (Continued) |
| (e) | Related party commitments (Continued) |
| (iii) | Operating lease commitments |
| | As at 31 December | | | | 2016 | | | 2015 | | | | | | | | | Subsidiaries of Huaneng Group | | | 286,340 | | | | 145,950 | | HIPDC | | | 65,554 | | | | 73,202 | | | | | | | | | | | Total | | | 351,894 | | | | 219,152 | |
Other than the salaries and staff welfare, the laborlabour cost of the Company and its subsidiariesGroup mainly comprises the following:
All PRC employees of the Company and its subsidiariesGroup 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 areGroup is required to make contributions to the publicly administered retirement plan for theirits PRC employees at a specified rate, currently set at 14% to 22% (both 2015 and 2014:(2018: 14% to 22%) of the basic salary of the PRC employees. The retirement plan contributions paid by the Company and its subsidiariesGroup for the year ended 31 December 20162019 were approximately RMB873RMB1,198 million (2015 and 2014: RMB789 million and RMB621(2018: RMB1,179 million), including approximately RMB832RMB1,155 million (2015 and 2014: RMB748 million and RMB593(2018: RMB1,135 million) charged to profit or loss.
In addition, the Company and its subsidiaries haveGroup has 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,Group, and the Company and its subsidiaries areGroup is 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 2016,2019, the contributions to the supplementary defined contribution retirement scheme paid by the Company and its subsidiariesGroup amounted to approximately RMB244RMB601 million (2015 and 2014: RMB223 million and RMB171(2018: RMB483 million), including approximately RMB233RMB581 million (2015 and 2014: RMB212 million and RMB164(2018: RMB465 million) charged to profit or loss.
SinoSing Power and its subsidiaries in Singapore appropriate a specified rate, currently set at 6.5%7.5% to 16% (both 2015 and 2014:17% (2018: 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 20162019 amounted to approximately RMB18.47RMB20.73 million (2015 and 2014: RMB15.76 million and RMB14.70(2018: RMB17.53 million), all of which were charged to profit or loss.
The Company and its subsidiaries haveGroup has no further obligation for post-retirement benefits beyond the annual contributions made above.
In addition, the Company and its subsidiariesGroup also makemakes 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 CompanyGroup and its subsidiaries amounted to approximately RMB604RMB898 million (2015 and 2014: RMB579 million and 462(2018: RMB802 million) and RMB699RMB1,034 million (2015 and 2014: RMB658 million and RMB519(2018: RMB930 million) for the year ended 31 December 2016,2019 including approximately RMB572RMB859 million (2015 and 2014: RMB546 million and RMB439(2018: RMB764 million) and RMB664RMB994 million (2015 and 2014: RMB619 million and RMB483(2018: RMB886 million) were charged to profit or loss, respectively.
3739 | Directors’, 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 20162019 is set out below:
| | | | | 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 | |
| | Fees | | | Basic salaries | | | Performance salaries | | | Pension | | | Total | | Name of director | | | | | | | | | | | | | | | | Mr. Zhao Keyu1 | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Shu Yinbiao2 | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Cao Peixi3 | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Huang Jian | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Wang Yongxiang | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Mi Dabin | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Guo Hongbo | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Cheng Heng | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Lin Chong | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Yue Heng | | | 300 | | | | - | | | | - | | | | - | | | | 300 | | Mr. Xu Mengzhou | | | 300 | | | | - | | | | - | | | | - | | | | 300 | | Mr. Liu Jizhen | | | 300 | | | | - | | | | - | | | | - | | | | 300 | | Mr. Xu Haifeng | | | 300 | | | | - | | | | - | | | | - | | | | 300 | | Mr. Zhang Xianzhi | | | 300 | | | | - | | | | - | | | | - | | | | 300 | | | | | | | | | | | | | | | | | | | | | | | Sub-total | | | 1,500 | | | | - | | | | - | | | | - | | | | 1,500 | | | | | | | | | | | | | | | | | | | | | | | Name of supervisor | | | | | | | | | | | | | | | | | | | | | Mr. Ye Xiangdong | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Mu Xuan | | | - | | | | - | | | | - | | | | - | | | | - | | Ms. Zhang Mengjiao | | | - | | | | - | | | | - | | | | - | | | | - | | Mr. Gu Jianguo | | | - | | | | - | | | | - | | | | - | | | | - | | Ms. Zhang Xiaojun | | | - | | | | 150 | | | | 529 | | | | 131 | | | | 810 | | Mr. Zhang Xiancheng | | | - | | | | 154 | | | | 529 | | | | 131 | | | | 814 | | | | | | | | | | | | | | | | | | | | | | | Sub-total | | | | | | | 304 | | | | 1,058 | | | | 262 | | | | 1,624 | | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | | | | | | | | |
3739 | Directors’, 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 20152018 is set out below:
| | | | | Basic | | | Performance | | | | | | | | | | | Fees | | | salaries | | | salaries | | | Pension | | | Total | | | | | | | | | | | | | | | | | | | | Fees | | | Basic salaries | | | Performance salaries | | | Pension | | | Total | | Name of director | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mr. Shu Yinbiao | | | - | | | - | | | - | | | - | | | - | | Mr. Cao Peixi | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Guo Junming | | | - | | | | - | | | | - | | | | - | | | | - | | | Mr. Liu Guoyue | | | - | | | | 143 | | | | 663 | | | | 123 | | | | 929 | | | - | | | - | | | - | | | - | | | - | | Mr. Li Shiqi | | | - | | | | - | | | | - | | | | - | | | | - | | | Mr. Fan Xiaxia | | | - | | | - | | | - | | | - | | | - | | Mr. Huang Jian | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Fan Xiaxia | | | - | | | | 356 | | | | 494 | | | | 131 | | | | 981 | | | Mr. Wang Yongxiang | | | - | | | - | | | - | | | - | | | - | | Mr. Mi Dabin | | | 65 | | | | - | | | | - | | | | - | | | | 65 | | | - | | | - | | | - | | | - | | | - | | Mr. Guo Hongbo | | | 12 | | | | - | | | | - | | | | - | | | | 12 | | | - | | | - | | | - | | | - | | | - | | Mr. Zhu Yousheng | | | 24 | | | | - | | | | - | | | | - | | | | 24 | | | Mr. Xu Zujian | | | 24 | | | | - | | | | - | | | | - | | | | 24 | | | Ms. Li Song | | | 65 | | | | - | | | | - | | | | - | | | | 65 | | | Mr. Li Zhensheng | | | 74 | | | | - | | | | - | | | | - | | | | 74 | | | Mr. Qi Yudong | | | 6 | | | | - | | | | - | | | | - | | | | 6 | | | Mr. Zhang Shouwen | | | 74 | | | | - | | | | - | | | | - | | | | 74 | | | Mr. Cheng Heng | | | - | | | - | | | - | | | - | | | - | | Mr. Lin Chong | | | - | | | - | | | - | | | - | | | - | | Mr. Yue Heng | | | 100 | | | | - | | | | - | | | | - | | | | 100 | | | 74 | | | - | | | - | | | - | | | 74 | | Ms. Zhang Lizi | | | 30 | | | | - | | | | - | | | | - | | | | 30 | | | Mr. Geng Jianxin | | | 37 | | | | - | | | | - | | | | - | | | | 37 | | | Mr. Xia Qing | | | 37 | | | | - | | | | - | | | | - | | | | 37 | | | Mr. Xu Mengzhou | | | 74 | | | - | | | - | | | - | | | 74 | | Mr. Liu Jizhen | | | 74 | | | - | | | - | | | - | | | 74 | | Mr. Xu Haifeng | | | 74 | | | - | | | - | | | - | | | 74 | | Mr. Zhang Xianzhi | | | | 74 | | | | - | | | | - | | | | - | | | | 74 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sub-total | | | 548 | | | | 499 | | | | 1,157 | | | | 254 | | | | 2,458 | | | | 370 | | | | - | | | | - | | | | - | | | | 370 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Name of supervisor | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mr. Ye Xiangdong | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Mu Xuan | | | 65 | | | | - | | | | - | | | | - | | | | 65 | | | - | | | - | | | - | | | - | | | - | | Ms. Zhang Mengjiao | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Gu Jianguo | | | 49 | | | | - | | | | - | | | | - | | | | 49 | | | - | | | - | | | - | | | - | | | - | | Mr. Wang Zhaobin | | | - | | | | 298 | | | | 385 | | | | 103 | | | | 786 | | | Ms. Zhang Ling | | | - | | | | 133 | | | | 263 | | | | 53 | | | | 449 | | | Ms. Zhang Xiaojun | | | - | | | 154 | | | 476 | | | 130 | | | 760 | | Mr. Zhu Daqing | | | - | | | 66 | | | 250 | | | 63 | | | 379 | | Mr. Zhang Xiancheng | | | | - | | | | 36 | | | | 87 | | | | 22 | | | | 145 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sub-total | | | 114 | | | | 431 | | | | 648 | | | | 156 | | | | 1,349 | | | | - | | | | 256 | | | | 813 | | | | 215 | | | | 1,284 | | | | | | | | | | | | | | | | | | | | | | | | Total | | | 662 | | | | 930 | | | | 1,805 | | | | 410 | | | | 3,807 | | | | | | | | | | | | | | | | |
3739 | Directors’, 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 20142017 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. Guo Junming | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Liu Guoyue | | | - | | | | 278 | | | | 258 | | | | 117 | | | | 653 | | | - | | | - | | | - | | | - | | | - | | Mr. Fan Xiaxia | | | - | | | - | | | - | | | - | | | - | | Mr. Li Shiqi | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Huang Jian | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Fan Xiaxia | | | - | | | | 358 | | | | 494 | | | | 122 | | | | 974 | | | Mr. Wang Yongxiang | | | - | | | - | | | - | | | - | | | - | | Mr. Mi Dabin | | | - | | | | - | | | | - | | | | - | | | | - | | | 24 | | | - | | | - | | | - | | | 24 | | Mr. Guo Hongbo | | | 48 | | | | - | | | | - | | | | - | | | | 48 | | | - | | | - | | | - | | | - | | | - | | Mr. Xu Zujian | | | 48 | | | | - | | | | - | | | | - | | | | 48 | | | Mr. Zhu Yousheng | | | 24 | | | - | | | - | | | - | | | 24 | | Ms. Li Song | | | - | | | | - | | | | - | | | | - | | | | - | | | 24 | | | - | | | - | | | - | | | 24 | | Mr. Cheng Heng | | | - | | | - | | | - | | | - | | | - | | Mr. Lin Chong | | | - | | | - | | | - | | | - | | | - | | Mr. Li Zhensheng | | | 74 | | | | - | | | | - | | | | - | | | | 74 | | | 37 | | | - | | | - | | | - | | | 37 | | Mr. Qi Yudong | | | 74 | | | | - | | | | - | | | | - | | | | 74 | | | Mr. Zhang Shouwen | | | 74 | | | | - | | | | - | | | | - | | | | 74 | | | Mr. Yue Heng | | | - | | | | - | | | | - | | | | - | | | | - | | | 74 | | | - | | | - | | | - | | | 74 | | 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 | | | Mr. Geng Jianxin | | | 37 | | | - | | | - | | | - | | | 37 | | Mr. Xia Qing | | | 37 | | | - | | | - | | | - | | | 37 | | Mr. Xu Mengzhou | | | 74 | | | - | | | - | | | - | | | 74 | | Mr. Liu Jizhen | | | 37 | | | - | | | - | | | - | | | 37 | | Mr. Xu Haifeng | | | 37 | | | - | | | - | | | - | | | 37 | | Mr. Zhang Xianzhi | | | | 37 | | | | - | | | | - | | | | - | | | | 37 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sub-total | | | 562 | | | | 636 | | | | 752 | | | | 239 | | | | 2,189 | | | | 442 | | | | - | | | | - | | | | - | | | | 442 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Name of supervisor | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mr. Ye Xiangdong | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Mu Xuan | | | - | | | | - | | | | - | | | | - | | | | - | | | 24 | | | - | | | - | | | - | | | 24 | | Mr. Hao Tingwei | | | - | | | | - | | | | - | | | | - | | | | - | | | Ms. Zhang Mengjiao | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | - | | | - | | | - | | | - | | Mr. Gu Jianguo | | | 48 | | | | - | | | | - | | | | - | | | | 48 | | | 24 | | | - | | | - | | | - | | | 24 | | Mr. Wang Zhaobin | | | - | | | | 305 | | | | 420 | | | | 111 | | | | 836 | | | Ms. Zhang Ling | | | - | | | | 129 | | | | 505 | | | | 102 | | | | 736 | | | Ms. Zhang Xiaojun | | | - | | | 137 | | | 466 | | | 124 | | | 727 | | Mr. Zhu Daqing | | | | - | | | | 135 | | | | 464 | | | | 123 | | | | 722 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sub-total | | | 48 | | | | 434 | | | | 925 | | | | 213 | | | | 1,620 | | | | 48 | | | | 272 | | | | 930 | | | | 247 | | | | 1,497 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | 610 | | | | 1,070 | | | | 1,677 | | | | 452 | | | | 3,809 | | | | 490 | | | | 272 | | | | 930 | | | | 247 | | | | 1,939 | |
37
| Directors’, supervisors’1 | Appointed on 5 March 2020 |
| 2 | Appointed on 30 January 2019 and senior management’s emoluments (Continued)resigned on 5 March 2020 |
| 3 | Resigned on 30 January 2019 |
| (a) | Pre-tax benefits and social insurance of directors and supervisors (Continued) |
1Resigned on 23 June 2016.
2 Appointed on 23 June 2016.
3 Resigned on 14 April 2016.
4 Appointed on 14 April 2016.
During the year, no option was granted to the directors or the supervisors (2015 and 2014:(2018: 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 (2015 and 2014:(2018: nil).
No director or supervisor had waived or agreed to waive any emoluments during the years 2016, 20152019 and 2014.2018.
3739 | Directors’, 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 subsidiariesGroup for the year include oneincluded no director (2015 and 2014: two and one) whose(2018: no director). Directors emoluments are reflected in the analysis presented above. The emoluments payable to all the remaining four (2015 and 2014: three and four)five (2018: five) individuals during the year (within the range of nil to RMB0.79RMB1.03 million) are as follows:
| | As at 31 December | | | | 2016 | | | 2015 | | | 2014 | | | | | | | | | | | | Basic salaries | | | 1,213 | | | | 910 | | | | 1,220 | | Performance salaries | | | 1,440 | | | | 1,260 | | | | 1,680 | | Pension | | | 502 | | | | 365 | | | | 454 | | | | | | | | | | | | | | | | | | 3,155 | | | | 2,535 | | | | 3,354 | |
| | For the year ended 31 December | | | | 2019 | | | 2018 | | | 2017 | | | | | | | | | | | | Basic salaires | | | 1,578 | | | | 1,500 | | | | 1,524 | | Performance salaris | | | 2,329 | | | | 2,100 | | | | 1,800 | | Pension | | | 695 | | | | 679 | | | | 648 | | | | | | | | | | | | | | | Total | | | | | | | | | | | | |
Capital commitments mainly relate to the construction of new power projects, certain ancillary facilities and renovation projects for existing power plants. Details of such commitments are as follows:
| | As at 31 December | | | | 2016 | | | 2015 | | | | | | | | | Contracted but not provided | | | 18,603,559 | | | | 20,388,412 | |
| | As at 31 December | | | | 2019 | | | 2018 | | Contracted but not provided | | | 42,634,992 | | | | 16,790,739 | |
As at 31 December 2019, the commitments to make capital contributions to a Group’s joint venture was as follows:
| | As at 31 December 2019 | | A joint venture | | | | |
40 | Commitments (continued) |
| (b) | Operating lease commitments as at 31 December 2018 |
The Company and its subsidiaries haveGroup had various operating lease arrangements for land and buildings. Some of the leases containcontained renewal options and most of the leases containcontained escalation clauses. Lease terms dodid not contain restrictions on the Company and its subsidiaries’Group’s 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 2018 | | Land and buildings | | | | - not later than 1 year | | | 194,333 | | - later than 1 year and not later than 2 years | | | 99,149 | | - later than 2 year and not later than 5 years | | | 191,853 | | - later than 5 years | | | 1,161,916 | | | | | | | Total | | | | |
The Group has no lease contracts that have not yet commenced as at 31 December 2019.
38 | Commitments (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 2016, 2015 and 2014, the annual rentals was approximately RMB34 million.
| (c) | Fuel purchase commitments |
The Company and its subsidiaries haveGroup has 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:
| | | | As at 31 December 2016 | 2019 | | | | | Purchase | | Estimated | | | | Periods | | Purchase quantities | | Estimated unit costs (RMB) | | | | | | | | | | A government-related enterprise | | | 2017-2039 | 2020-2039 | 2.8 million m3/day* | | | 2.31/2.88 / m | 3 | A government-related enterprise | | | 2017-2023 | | 541 million m3/year*
| | | 2.16/ m | 3
| | | | 2017-2023 | | 450 million m3/year*
| | | 2.16/ m | 3
| Other suppliers | | | 2017-2022 | | 248BBtu**/day | | approximately 63,000/BBtu | | | | | 2023 | | 247.5-256.6BBtu**/day | | approximately 63,000/BBtu | | | | | 2024-2028 | | 49.9-59.0BBtu**/day | | approximately 70,000/BBtu | |
| | | | As at 31 December 2015 | | | | | | Purchase | | Estimated | | | | Periods | | quantities | | unit costs (RMB) | | | | | | | | | | A government-related enterprise | 2020-2023 | 991 million m3/year* | 2.31 / m3 | | 2020-2023 | 541 million m3/year* | 2.19 / m3 | | 2020-2023 | 450 million m3/year* | 2.25 / m3 | | | 2016-2039 | | A government-related enterprise | 2020-2026 | 200 million m3/year* | 2.60 / m3 | | | | | Other suppliers | 2020-2021 | 201.5-251.5 BBtu**/day | approximately 47,000/BBtu | | 2022 | 205.5-255.5 BBtu**/day | approximately 45,000/BBtu | | 2023 | 81.5-247.5 BBtu**/day | approximately 41,000/BBtu | | 2024-2028 | 42.4-81.5 BBtu**/day | approximately 37,000/BBtu | | 2029 | 42.4 BBtu**/day | approximately 31,000/BBtu |
40 | Commitments (continued) |
| (c) | Fuel purchase commitments (continued) |
| As at 31 December 2018 | | Periods | Purchase quantities | Estimated unit costs (RMB) | | | | | A government-related enterprise | 2019-2039 | 2.8 million m3/day* | 2.31 / m3 | | | 2.13/ m | 3
| A government-related enterprise | 2019-2023 | 991 million m3/year* | 2.50 / m3 | | 2016-2023 | 2019-2023 | 541 million m3/year* | | | 1.91/2.32 / m | 3 | | | | 2016-2023 | 2019-2023 | 450 million m3/year* | | | 1.91/2.50 / m | 3 | Other suppliers | | | 2016 | | 244.5BBtu**/day | | approximately 40,000/BBtu | | | | | 2017-2022 | | 248BBtu**/day | | approximately 40,000/BBtu | | | | | 2023 | | 247.5BBtu**/day | | | | | | | 2024-2028 | | 49.9BBtu**/day | | approximately 55,000/BBtu | | | | | | A government-related enterprise | 2019-2026 | 200 million m3/year* | 2.45 / m3 | | | | | Other suppliers | 2019 | 238 BBtu**/day | approximately 76,000/BBtu | | 2020-2021 | 241.5-242 BBtu**/day | approximately 76,000/BBtu | | 2022 | 242.5 BBtu**/day | approximately 76,000/BBtu | | 2023 | 81.5-247.5 BBtu**/day | approximately 82,000/BBtu | | 2024-2028 | 42.4-81.5 BBtu**/day | approximately 89,000/BBtu | | 2029 | 42.4 BBtu**/day | approximately 81,000/BBtu |
38 | Commitments (Continued) |
| (c) | Fuel purchase commitments (Continued) |
| * | The quantities represent maximum volume, while others represent minimum or forecasted volume if not specified. |
| ** | BBtu: Billion British Thermal Unit. |
3941 | Business combinationsAcquisition, disposal and other transactions |
2016 Business combinations
| (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 WindOn 28 November 2019, the Group’s subsidiary, Huaneng Jiangxi Clean EnergyPower Generation and Supply Limited Liability Company (“ Jiangxi Clean Energy”), and a third party entered into an equity transfer agreement, pursuant to which the third party agreed to sell and the Jiangxi Clean Energy agreed to acquire a 100% equity interest in Shangrao Hongyuan Power GenerationCo., Ltd. (“Hongyuan Power”) at a cash consideration of RMB99.84 million. The consideration has been fully paid by 27 December 2019 and the transaction was establishedcompleted on 3 March 2015 in Xuzhou, Jiangsu Province, and is mainly engaged in wind power generation, wind power research and related technical consulting services. Onthe same day. As of the acquisition date, Hongyuan Power had no business operations but the entity is under construction. Fromconstruction in process of a photovoltaic power generation project.
Therefore, the Group was not capable of integrating the project with its inputs and processes to produce outputs as of acquisition date. As such, management determined that the acquisition date to 31 December 2016, Tongshan Xiehe Wind Power Generation haddid not commenced operation.constitute a business combination for accounting purpose.
41 | (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.Acquisition, disposal and other transactions (continued) |
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.
39
| Business combinations (Continued)(b) | Disposal |
| (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 | |
39 | Business combinations (Continued) |
2015 Business combinations
On 13 October 2014,31 May 2019, Luoyang Yangguang Co-generation Co., Ltd. (“Luoyang Yangguang”) filed for bankruptcy to Luoyang Intermediate People’s Court (“Luoyang Court”). On 23 July 2019, Luoyang Court declared the Company entered into equity transfer agreements with Huanengbankruptcy of Luoyang Yangguang. Luoyang Yangguang was not consolidated by the 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 2015since then. The Group recognised a net gain of RMB111 million upon the acquisition was completed and since then the Company obtained the control over above mentioned entities. The acquired business contributed consolidated revenuedeconsolidation 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.Luoyang Yangguang.
The total consideration is RMB9.647 billion after adjustmentdetails of the profits generated from the datenet assets disposed of valuation to the acquisition date in accordance with the equity transfer agreements, which has been settled in cash in 2015.are as follows:
| | Acquisition Date of disposal | | | | RMB’000 | | Fair valueNet assets disposed of total identifiable net: | | | | Property, plant and equipment | | | 54,572 | | Intangible assets | | | 10,412,14756,364 | | Inventories | | | 6,170 | | Accounts receivable | | | 61,101 | | Other receivable and assets | | | 23,955 | | Cash and cash equivalents | | | 1,667 | | | | | | | Non-controlling interestsAccounts payable and other liabilities | | | (1,934,865177,429 | ) | GoodwillInterest-bearing loans and borrowings | | | 1,169,966353,000 | | | | | | | Cash consideration | | | 9,647,248 | | | | | | | Less: Bank balances and cash of acquirees | | | 972,686 | | Less: Restricted cash | | | (189,637 | ) | Cash and cash equivalents of acquirees | | | 783,049 | | | | | | | Add: Cash paid for payables in relation to business combination of prior period | | | 23,683 | | Cash consideration paid for acquisition of subsidiaries, net of cash acquired | | | 8,887,882 | |
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.
39 | Business 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 | |
39 | Business 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
| | | | | | | | Bank balances and cash | | | 9 | | Other receivables | | | 15,583 | | Inventories | | | 20 | | Property, plant and equipment | | | 10,750 | | Payables and otherNet liabilities | | | (48326,600 | ) | | | | | | Total identifiable net assetsGain on disposal of Luoyang Yangguang | | | 26,314326,600 | | Non-controlling interestsLoss on receivables due from Luoyang Yangguang | | | (2,631215,800 | ) | Goodwill | | | - | | Net impact on disposal | | | 110,800 | | | | | | | Consideration | | | 23,683- | |
An analysis of the cash flow of cash and cash equivalents in respect of the Disposal of Luoyang Yangguang is as follows: | | Date of disposal | | | | | | Cash consideration received | | | - | | Cash and bank balances disposed of | | | (1,667 | ) | | | | | | Net outflows of cash and cash equivalents in respect of disposal of Luoyang Yangguang | | | (1,667 | ) |
As at 31 December 2014, Zhumadian Wind Power was still under construction.F-165
41 | Acquisition, disposal and other transactions (continued) |
| (c) | Capital injection of Ruijin Power Generation |
The Group previously had a 100% equity interest in Ruijin Power Generation. On 4 September 2019, the Group entered into a capital injection and enlargement agreement on Ruijin Power Generation with a third party. Pursuant to the agreement, the third party will subscribe RMB610 million of the registered capital of Ruijin Power Generation, with a total cash consideration of RMB648 million. Upon completion of the transaction, the registered capital of Ruijin Power Generation was RMB1,220 million, of which the Group’s equity interest in Ruijin Power Generation decreased from 100% to 50%. On 28 December 2019, the Group and the third party shareholder entered into a voting in concert agreement which was effective immediately. According to the voting in concert agreement, the third party shareholder agreed to vote the same in respect of significant financial and operating decisions made by the Group. As a result, the Group still has control over Ruijin Power Generation.
4042 | Non-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 | | | | | | | | Company | | | Cogeneration | | | Company | | | Company | | | Company | | | Company | | | Company | | | Cogeneration | | | subsidiaries | | | Total | | | Qinbei Power | | | Beijing Co-generation | | | Luohuang Power | | | Weihai Power | | | Jinling Power | | | Yueyang Power | | | Shidongkou Power | | | Yangliuqing Co-generation | | | Shandong Power | | | Other individually immaterial subsidiaries | | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | NCI percentage | | | 40 | % | | | 59 | % | | | 40 | % | | | 40 | % | | | 40 | % | | | 45 | % | | | 50 | % | | | 45 | % | | | | | | | | 40 | % | | 59 | % | | 40 | % | | 40 | % | | 40 | % | | 45 | % | | 50 | % | | 45 | % | | 20 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31 December 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31 December 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-current assets | | | 11,210,604 | | | | 5,821,110 | | | | 3,966,880 | | | | 4,988,112 | | | | 5,426,759 | | | | 4,958,325 | | | | 3,917,340 | | | | 2,654,085 | | | | | | | | | 9,086,939 | | | 6,264,852 | | | 3,649,432 | | | 3,981,753 | | | 4,432,195 | | | 4,320,232 | | | 3,255,810 | | | 2,421,307 | | | 57,881,917 | | | | | | | | Current assets | | | 1,472,192 | | | | 1,041,957 | | | | 864,069 | | | | 508,493 | | | | 649,446 | | | | 826,089 | | | | 380,641 | | | | 563,023 | | | | | | | | | 1,317,076 | | | 852,059 | | | 1,134,889 | | | 629,370 | | | 459,849 | | | 1,426,960 | | | 465,772 | | | 721,617 | | | 11,225,955 | | | | | | | | Non-current liabilities | | | (2,206,586 | ) | | | (152,911 | ) | | | (284,064 | ) | | | (104,952 | ) | | | (1,773,332 | ) | | | (1,150,021 | ) | | | (1,055,640 | ) | | | (224,373 | ) | | | | | | | | (2,249,675 | ) | | (53,494 | ) | | (205,085 | ) | | (34,495 | ) | | (1,136,398 | ) | | (701,135 | ) | | (488,350 | ) | | (378,478 | ) | | (29,027,404 | ) | | | | | | | Current liabilities | | | (6,475,340 | ) | | | (1,665,750 | ) | | | (1,601,236 | ) | | | (2,504,410 | ) | | | (1,835,090 | ) | | | (1,828,581 | ) | | | (1,584,142 | ) | | | (991,614 | ) | | | | | | | | (4,905,399 | ) | | (1,257,150 | ) | | (2,061,440 | ) | | (1,894,952 | ) | | (1,489,022 | ) | | (2,368,204 | ) | | (1,563,894 | ) | | (778,235 | ) | | (23,441,038 | ) | | | | | | | Net assets | | | 4,000,870 | | | | 5,044,406 | | | | 2,945,649 | | | | 2,887,243 | | | | 2,467,783 | | | | 2,805,812 | | | | 1,658,199 | | | | 2,001,121 | | | | | | | | | 3,248,941 | | | 5,806,267 | | | 2,517,796 | | | 2,681,676 | | | 2,266,624 | | | 2,677,853 | | | 1,669,338 | | | 1,986,211 | | | 16,639,430 | | | | | | | | Carrying amount of NCI | | | 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 | | | 1,313,492 | | | 3,425,774 | | | 986,100 | | | 1,072,670 | | | 906,671 | | | 1,220,746 | | | 834,669 | | | 892,899 | | | 5,591,178
| | | 5,331,112
| | | 21,575,311 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revenue | | | 5,006,349 | | | | 4,476,729 | | | | 2,436,586 | | | | 3,217,209 | | | | 3,734,108 | | | | 2,716,817 | | | | 1,915,915 | | | | 1,773,869 | | | | | | | | | | | 4,787,221 | | | 5,579,382 | | | 2,833,807 | | | 3,045,352 | | | 3,099,014 | | | 4,005,328 | | | 2,055,168 | | | 1,945,841 | | | 28,274,364 | | | | | | | | Net profit | | | 457,311 | | | | 788,899 | | | | 122,508 | | | | 507,900 | | | | 655,568 | | | | 243,913 | | | | 297,211 | | | | 177,447 | | | | | | | | | | | Total comprehensive income | | | 457,311 | | | | 788,899 | | | | 122,508 | | | | 507,900 | | | | 655,568 | | | | 243,913 | | | | 297,211 | | | | 177,447 | | | | | | | | | | | Profit allocated to NCI | | | 182,924 | | | | 465,450 | | | | 49,003 | | | | 203,160 | | | | 262,227 | | | | 109,761 | | | | 148,606 | | | | 79,851 | | | | 326,578 | | | | 1,827,560 | | | Other comprehensive income allocated to NCI | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 484 | | | | 484 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net (loss)/profit | | | 30,270 | | | 705,311 | | | 64,093 | | | 193,754 | | | 265,457 | | | 453,869 | | | 216,595 | | | 59,733 | | | (430,222 | ) | | | | | | | Total comprehensive (loss)/ income | | | 30,270 | | | 705,311 | | | 64,093 | | | 193,754 | | | 265,457 | | | 453,869 | | | 216,595 | | | 59,733 | | | (675,666 | ) | | | | | | | (Loss)/ Profit allocated to NCI | | | 12,108 | | | 416,133 | | | 25,637 | | | 77,502 | | | 106,183 | | | 204,241 | | | 108,298 | | | 26,880 | | | (86,044 | ) | | (549,078 | ) | | 341,860 | | Other comprehensive income/ (loss) allocated to NCI | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | (49,089 | ) | | (111,692 | ) | | (160,781 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash flow from operating activities | | | 1,400,042 | | | | 973,352 | | | | 550,346 | | | | 1,045,828 | | | | 1,293,565 | | | | 568,379 | | | | 890,615 | | | | 295,547 | | | | | | | | | | | 667,432 | | | 1,623,975 | | | 360,226 | | | 273,607 | | | 821,975 | | | 689,723 | | | 655,910 | | | 171,531 | | | 7,066,137 | | | | | | | | Cash flow from investment activities | | | (312,604 | ) | | | (540,151 | ) | | | (189,599 | ) | | | (273,117 | ) | | | (37,274 | ) | | | (62,622 | ) | | | (258,892 | ) | | | (197,600 | ) | | | | | | | | | | (205,703 | ) | | (273,374 | ) | | (101,279 | ) | | (95,699 | ) | | (128,541 | ) | | (163,584 | ) | | (86,427 | ) | | (16,465 | ) | | (2,787,419 | ) | | | | | | | Cash flow from financing activities | | | (1,247,836 | ) | | | (344,718 | ) | | | (319,643 | ) | | | (786,471 | ) | | | (1,255,955 | ) | | | (521,249 | ) | | | (462,075 | ) | | | (58,293 | ) | | | | | | | | | | (613,468 | ) | | (1,329,614 | ) | | (247,546 | ) | | (260,953 | ) | | (792,266 | ) | | (503,852 | ) | | (582,452 | ) | | (167,846 | ) | | (2,673,351 | ) | | | | | | | Net (decrease)/increase in cash and cash equivalents | | | (160,398 | ) | | | 88,518 | | | | 41,104 | | | | (13,760 | ) | | | 336 | | | | (15,492 | ) | | | 169,648 | | | | 39,616 | | | | | | | | | | | Net increase/ (decrease) in cash | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | and cash equivalents | | | (166,994 | ) | | 20,987 | | | 11,401 | | | (94,821 | ) | | (98,832 | ) | | 22,287 | | | (12,969 | ) | | (12,780 | ) | | (414,221 | ) | | | | | | | Dividends paid to NCI | | | 433,090 | | | | 687,679 | | | | 120,000 | | | | 366,983 | | | | 308,923 | | | | - | | | | 273,900 | | | | 128,857 | | | | | | | | | | | - | | | 625,886
| | | - | | | 124,000
| | | 130,566
| | | 45,000
| | | 65,000
| | | 48,585
| | | 84,156
| | | | | | | |
40 | Non-controlling interests (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | | | Other | | | | | | | | Qinbei | | | | | | Luohuang | | | Weihai | | | Jinling | | | Yueyang | | | Shidongkou | | | | | | individually | | | | | | | | Power | | | Beijing | | | Power | | | Power | | | Power | | | Power | | | Power | | | Yangliuqing | | | immaterial | | | | | | Qinbei Power | | | Beijing Co-generation | | | Luohuang Power | | | Weihai Power | | | Jinling Power | | | Yueyang Power | | | Shidongkou Power | | | Yangliuqing Co-generation | | | Shandong Power | | | 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 | % | | 20 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31 December 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31 December 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | | | | | | | 9,660,834 | | | 6,623,915 | | | 3,901,928 | | | 4,343,946 | | | 4,729,663 | | | 4,556,823 | | | 3,467,694 | | | 2,465,505 | | | 59,979,594 | | | | | | | | Current assets | | | 1,511,345 | | | | 1,203,956 | | | | 943,954 | | | | 464,234 | | | | 733,084 | | | | 752,111 | | | | 461,184 | | | | 455,209 | | | | | | | | | 1,645,248 | | | 1,147,225 | | | 1,187,551 | | | 695,125 | | | 525,725 | | | 1,038,193 | | | 404,508 | | | 759,703 | | | 12,294,264 | | | | | | | | Non-current liabilities | | | (3,313,836 | ) | | | (137,657 | ) | | | (300,428 | ) | | | (117,412 | ) | | | (2,310,221 | ) | | | (1,314,199 | ) | | | (1,379,640 | ) | | | (243,675 | ) | | | | | | | | (3,831,883 | ) | | (334,910 | ) | | (611,767 | ) | | (59,651 | ) | | (1,559,581 | ) | | (662,863 | ) | | (409,762 | ) | | (178,511 | ) | | (30,380,001 | ) | | | | | | | 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 | ) | | | | | | | | (4,255,529 | ) | | (1,665,921 | ) | | (1,824,010 | ) | | (2,263,301 | ) | | (1,591,228 | ) | | (2,579,578 | ) | | (1,879,696 | ) | | (1,012,252 | ) | | (24,530,691 | ) | | | | | | | 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 | | | | | | | | | 3,218,670 | | | 5,770,309 | | | 2,653,702 | | | 2,716,119 | | | 2,104,579 | | | 2,352,575 | | | 1,582,744 | | | 2,034,445 | | | 17,363,166 | | | | | | | | 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 | | | 1,301,384 | | | 3,404,517 | | | 1,040,463 | | | 1,086,448 | | | 841,854 | | | 1,074,060 | | | 791,372 | | | 914,604 | | | 5,879,057 | | | 5,352,493 | | | 21,686,252 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | | | | | | | | | 5,293,403 | | | 5,704,966 | | | 2,819,106 | | | 3,587,416 | | | 3,346,779 | | | 4,003,821 | | | 2,109,785 | | | 2,077,570 | | | 24,202,739 | | | | | | | | 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 | ) | | Net (loss)/profit | | | (198,026 | ) | | 757,268 | | | 18,811 | | | 253,552 | | | 200,269 | | | 118,342 | | | 131,129 | | | 69,477 | | | 282,198 | | | | | | | | Total comprehensive (loss)/ income | | | (198,026 | ) | | 757,268 | | | 18,811 | | | 253,552 | | | 200,269 | | | 118,342 | | | 131,129 | | | 69,477 | | | 327,958 | | | | | | | | (Loss)/ Profit allocated to NCI | | | (79,210 | ) | | 446,788 | | | 7,524 | | | 101,421 | | | 80,108 | | | 53,254 | | | 65,564 | | | 31,265 | | | (10,780 | ) | | (100,395 | ) | | 595,539 | | Other comprehensive income/ (loss) allocated to NCI | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | 9,152 | | | (33,707 | ) | | (24,555 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | | | | | | | | | 954,820 | | | 1,321,867 | | | 192,608 | | | 473,349 | | | 711,800 | | | 412,413 | | | 527,783 | | | 210,558 | | | 4,469,849 | | | | | | | | Cash flow from investment activities | | | (33,499 | ) | | | (574,149 | ) | | | (151,647 | ) | | | (235,657 | ) | | | (103,779 | ) | | | 538,740 | | | | (26,301 | ) | | | (14,100 | ) | | | | | | | | | | (503 | ) | | (316,754 | ) | | (201,012 | ) | | (98,420 | ) | | (52,701 | ) | | (106,596 | ) | | (45,045 | ) | | (258,605 | ) | | (3,628,406 | ) | | | | | | | 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 | ) | | | | | | | | | | (843,094 | ) | | (904,822 | ) | | (5,288 | ) | | (306,054 | ) | | (570,838 | ) | | (305,872 | ) | | (472,543 | ) | | 63,762 | | | (162,007 | ) | | | | | | | Net increase /(decrease) in cash and | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | cash equivalents | | | 179,719 | | | | 36,511 | | | | 22,666 | | | | (727 | ) | | | (52,925 | ) | | | (16,775 | ) | | | (45,482 | ) | | | (22,599 | ) | | | | | | | | | | Net increase/ (decrease) in cash and cash equivalents | | | 111,223 | | | 101,482 | | | (13,692 | ) | | 68,875 | | | 88,261 | | | (55 | ) | | 10,195 | | | 15,719 | | | 679,471 | | | | | | | | Dividends paid to NCI | | | 697,436 | | | | 362,958 | | | | 220,000 | | | | 83,320 | | | | 373,143 | | | | 135,000 | | | | 270,000 | | | | 183,055 | | | | | | | | | | | 165,965 | | | 460,262 | | | - | | | 140,000 | | | 95,979 | | | 46,790 | | | 51,870 | | | - | | | 42,506 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | | | | | | | | | |
4143 | Pending ArbitrationLeases |
In April 2015,The Group as a subsidiary’s construction contractor filed for an arbitration, demanding a compensationlessee
The carrying amounts of RMB83.46 million, inclusive of interests from the subsidiary. AsGroup’s right-of-use assets and the arbitration is ongoing,movements during the year are as follows:
| | Right-of-use assets | | | | Buildings | | | Electric utility plant in service | | | Trans- portation facilities | | | Land use rights | | | Others | | | Total | | | | | | | | | | | | | | | | | | | | | As at 1 January 2019 | | | 320,591 | | | | 1,387,258 | | | | 826 | | | | 11,810,054 | | | | 339,501 | | | | 13,858,230 | | Reclassification | | | (265,167 | ) | | | - | | | | 229,292 | | | | 375,376 | | | | (339,501 | ) | | | - | | Additions | | | 109,321 | | | | 2,643,363 | | | | - | | | | 1,270,033 | | | | 477,353 | | | | 4,500,070 | | Depreciation charge | | | (21,983 | ) | | | (233,218 | ) | | | (16,967 | ) | | | (496,464 | ) | | | (12,986 | ) | | | (781,618 | ) | Disposals/write-off | | | - | | | | - | | | | - | | | | (431,813 | ) | | | - | | | | (431,813 | ) | Currency translation differences | | | 552 | | | | 3,090 | | | | (6,730 | ) | | | 26,291 | | | | - | | | | 23,203 | | As at 31 December 2019 | | | 143,314 | | | | 3,800,493 | | | | 206,421 | | | | 12,553,477 | | | | 464,367 | | | | 17,168,072 | |
The carrying amount of settlement cannotlease liabilities and the movements during the year are as follows: | | As at 31 December | | | | 2019 | | | | | | Carrying amount at 1 January | | | 2,216,792 | | New leases | | | 2,835,993 | | Accretion of interest recognised during the year | | | 171,573 | | Currency translation difference | | | (23,673 | ) | Payments | | | (488,015 | ) | | | | | | Carrying amount at 31 December | | | 4,712,670 | | | | | | | Analysed into: | | | | | Current portion | | | 432,745 | | Non-current portion | | | 4,279,925 | |
The maturity analysis of lease liabilities is as follows:
| | 31 December | | | | 2019 | | | | | | Within 1 year | | | 432,745 | | After 1 year but within 2 years | | | 1,323,826 | | After 2 years but within 3 years | | | 332,986 | | After 3 years | | | 2,623,113 | | | | | | | Total | | | 4,712,670 | |
The amounts recognised in profit or loss in relation to leases are as follows:
| | As at 31 December | | | | 2019 | | | | | | Interest on lease liabilities | | | 171,573 | | Depreciation charge of right-of-use assets | | | 734,827 | | Expense relating to short-term leases and other leases with remaining lease terms ended on or before 31 December 2019 | | | 231,651 | | Expense relating to leases of low-value assets | | | 2,488 | | | | | | | Total amount recognised in profit or loss | | | 1,140,539 | |
| (c) | Extension and termination options |
The Group has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and they are aligned with the Group’s business needs. As of 31 December 2019, there is neither any extension options that the Group does not expect to exercise nor any significant termination options that the Group expects to exercise.
| (d) | Variable lease payment |
The Group does not have variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
| (e) | The total cash outflow for leases is disclosed in note 36 to these financial statements. |
The Group as a lessor
The Group’s finance lease is mainly relating to Ruyi Pakistan, SinoSing Power and Shandong Maintenance Company.
Ruyi Pakistan Energy entered into the power purchase agreement with CPPA-G to sell all of the electricity produced with a regulated tariff mechanism approved by the Pakistan National Electric Power Regulatory Authority. In accordance with the power purchase agreement and tariff mechanism, almost all the risks and rewards in relation to the power assets were in substance transferred to CPPA-G and therefore the assets were accounted for as a finance lease to CPPA-G.
SinoSing Power’s subsidiary Tuas Group entered into two build-to-suits agreements with third parties which contains sale and lease back agreement and operation maintenance services. Pursuant to the agreement, Tuas Group is viewed as the lessor and has conveyed the third parties the right to use the asset in exchange for consideration over the entire useful lives of the power plants .
Shandong Maintenance Company entered into the Energy Management Contract with Huangtai #8 Power Plant to provide the energy saving equipment construction service. Pursuant to the agreement, all the risk and rewards in relation to the energy saving equipment were in substance transferred to Huangtai#8 Power Plant as the benefit could be reliably estimated reliably. No provision has been recognized asduring the contract period.
Total finance lease income recognised by the Group during the year was RMB1,711 million.
As at 31 December 2016.2019, the maturity analysis of the Group’s finance lease receivables are as follows: | | 31 December | | | | 2019 | | | | | | Within 1 year | | | 2,172,707 | | After 1 year but within 2 years | | | 2,156,047 | | After 2 years but within 3 years | | | 2,146,481 | | After 3 years but within 4 years | | | 2,132,394 | | After 4 years but within 5 years | | | 2,163,914 | | After 5 years | | | 21,184,829 | | | | | | | Total undiscounted finance lease payments | | | 31,956,372 | | Unearned finance income | | | (20,949,750 | ) | Allowance for ECL | | | (3,086 | ) | | | | | | Total finance lease receivables as at 31 December 2019 | | | 11,003,536 | |
The Group leases certain property, plant and equipment under operating lease arrangements. Rental income recognised by the Group during the year was RMB140 million.
As at 31 December 2019, the undiscounted lease payments receivable by the Group in future periods under non-cancellable operating leases with its tenants are as follows:
| | 31 December | | | | 2019 | | | | | | Within 1 year | | | 28,143 | | After 1 year but within 2 years | | | 27,867 | | After 2 years but within 3 years | | | 27,695 | | After 3 years but within 4 years | | | 27,617 | | After 4 years but within 5 years | | | 27,645 | | After 5 years | | | 16,974 | | | | | | | Total | | | 155,941 | |
| (a) | After the end of the reporting period, the directors proposed a final dividend. Further details are disclosed in Note 22. | Issuance of corporate bonds
| (b) | On 14 October 2016,On 21 February 2020, The Group’s subsidiary Sinosing Services Pte. Ltd.( a company incorporated in the Republic of Singapore with limited liability) completed an issuance of a guaranteed bond with a total face value of US$ 0.3 billion with a fixed annual coupon interest rate of 2.250% which will mature in 2025 and a guaranteed bond with a total face value of US$0.3 billion with a fixed annual coupon interest rate of 2.625% which will mature in 2030. These bonds are unconditionally and irrevocably guaranteed by the Company entered into equity transfer agreements with Huaneng Group to acquire the 80% interests of Huaneng Shandong Power Limited, 100% interests of Huaneng Jilin Generation Co., Ltd., 100% interests of Huaneng Heilongjiang Generation Co., Ltd. and 90% interests of Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. from Huaneng Group at a total cash consideration of RMB15.114 billion. In January 2017, according to the agreements, the Company paid 50% of the consideration to Huaneng Group. The Company is still in the process of reviewing the nature and financial impact 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.
|
Issuance of an other equity instrument
On 18 March 2020, the Group completed an issuance of perpetual corporate bond with a total face value of RMB3 billion at par value of RMB100.00 per unit with no fixed maturity date. Interest of these perpetual corporate bonds is recorded as distribution, which is paid annually in arrears on the 19 March and may be deferred at the discretion of the Company unless compulsory distribution payment events (including distributions to ordinary shareholders of the Company, reduction of the registered capital of the Company or external equity investment in equity) have occurred. These perpetual corporate bonds have no fixed maturity dates and are callable at the Company’s option in whole on the First Call Date or any Distribution Payment Date falling after the First Call Date at their principal amounts together with any accrued, unpaid or deferred distributions. Issue of other equity instruments.
Response to COVID-19
The wide spread of the novel coronavirus (COVID-19) in the PRC since January 2020 is a fluid and challenging situation that all industries facing. The group has taken all possible effective measures to limit and keep the impact in control. The group will keep continuous attention on the change of situation and make timely response and adjustments in the future. Given the uncertainty of the situation, the duration of the business disruption and related financial impact, if any, cannot be reasonably estimated at this time.
45 | (c) | 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 mature in 270 days, with a par value of RMB100.Comparative information |
The Company issued super short-term bonds with a face valueGroup have initially applied IFRS 16 since 1 January 2019. Under the transition methods chosen, comparative information is not restated. Further details of RMB3 billion bearing annual interest rate of 3.67%the changes in February 2017, such bondsaccounting policies are denominateddisclosed in RMB and mature in 270 days, with a par value of RMB100.Note 2(b).
The Company issued super short-term bonds with a face valueThese financial statements were approved for issue by the Board of RMB3 billion bearing annual interest rate of 3.60% inDirectors on 31 March 2017, such bonds are denominated in RMB2020 and mature in 180 days, with a par value of RMB100.were signed on its behalf.
F-114F-173
THIS PAGE IS INTENTIONALLY LEFT BLANK
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 20, 2020 | Huaneng Power International, Inc. | | | | | | By: | | | | Name: Huang Chaoquan | | By:
| /s/ Du Daming
| | Name:
| Du Daming
| | Title: | Vice President and Secretary to the Board
|
|