HUANENG POWER INTERNATIONAL, INC.




Annual Report On Form 20-F
2016



As filed with the Securities and Exchange Commission on April 17, 2017

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 20-F
(Mark One)
☐☐          REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016
☒          ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018
OR
☐☐          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☐☐          SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
For the transaction period form _______to ______________
Commission file number: 1-13314
华能国际电力股份有限公司

HUANENG POWER INTERNATIONAL, INC.
(Exact name of Registrant as specified in its charter)
PEOPLE'S REPUBLIC OF CHINA
(Jurisdiction of incorporation or organization)
HUANENG BUILDING
6 FUXINGMENNEI STREET, XICHENG DISTRICT, BEIJING, PEOPLE'S REPUBLIC OF CHINA
(Address of principal executive offices)
Mr. Du DamingHuang Chaoquan
HUANENG BUILDING,
6 FUXINGMENNEI STREET, XICHENG DISTRICT, BEIJING, PEOPLE'S REPUBLIC OF CHINA
Tel: +86 (10) 6322 6999 Fax: +86 (10) 6322 6888
(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act.


Title of Each Class
Name of each exchange
on which registered
American Depositary Shares Each Representing 40 Overseas Listed SharesNew York Stock Exchange
Overseas Listed Shares with Par Value of RMB1.00 Per ShareNew York Stock Exchange*
*Not for trading, but only in connection with the registration of our American Depositary Shares
Securities registered or to be registered pursuant to Section 12(g) of the Act.
NONE
(Title of Class)
_______________________
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
NONE
(Title of Class)
_______________________
Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report:
Domestic A Shares with Par Value of RMB1.00 Per Share
10,500,000,000
10,997,709,919
Overseas Listed Shares with Par Value of RMB1.00 Per Share
4,700,383,440

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☒No ☐
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes ☐No ☒
Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ☐☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.filer or an emerging growth company. See definitionthe definitions of "large accelerated filer," "accelerated filerfiler" and large accelerated filer""emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ☒Accelerated filer ☐
Non-accelerated filer ☐Emerging growth company ☐
(Do not check if a smaller reporting company)
Large accelerated filer ☒                       iiAccelerated filer
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.
☐Non-accelerated filer ☐
† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP ☐
International Financial Reporting Standards as issued
by the International Accounting Standards Board ☒
Other ☐
If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 ☐Item 18 ☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐No ☒
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes ☐No ☐


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

TABLE OF CONTENTS
PART I12
ITEM 1Identity of Directors, Senior Management and Advisers12
ITEM 2Offer Statistics and Expected Timetable13
ITEM 3Key Information13
A.Selected financial data13
B.Capitalization and indebtedness24
C.Reasons for the offer and use of proceeds24
D.Risk factors24
ITEM 4Information on the Company1215
A.History and development of the Company1215
B.Business overview1416
C.Organizational structure3028
D.Property, plants and equipment3129
ITEM 4AUnresolved Staff Comments7779
ITEM 5Operating and Financial Reviews and Prospects7779
A.General7779
B.Operating results7982
C.Financial position96100
D.Liquidity and cash resources98101
E.Trend information102106
F.Employee benefits103107
G.Guarantees for loans and restricted assets103108
H.Off-balance sheet arrangements104108
I.Performance of significant investments and their prospects104108
J.Tabular disclosure of contractual obligations and commercial commitments104109
K.Impairment sensitivity analysis105110
L.Prospects for 20172019106110
ITEM 6Directors, Senior Management and Employees106111
A.Directors, members of the supervisory committee and senior management106111
B.Compensation for Directors, Supervisors and Executive Officers110115
C.Board practice111117
D.Employees112118
E.Share ownership112118
ITEM 7Major Shareholders and Related Party Transactions113118
A.Major shareholders113118
B.Related party transactions115121
C.Interests of experts and counsel121126
ITEM 8Financial Information121126
A.Consolidated statements and other financial information121126
B.Significant changes122127
ITEM 9The Offer and Listing122127
A.
Offer and listing details and markets122127
ITEM 10Additional Information123127
A.Share capital123127
B.Memorandum and articles of association123127
C.Material contracts130134
D.Exchange controls130134
E.Taxation131135
F.Dividends and paying agents136140
G.Statement by experts136140
H.Documents on display137140
I.Subsidiary information137141
ITEM 11Quantitative and Qualitative Disclosures About Market Risk137141


iiv

ITEM 12Description of Securities Other than Equity Securities141146
A.Debt Securities141146
B.Warrants and Rights141146
C.Other Securities141146
D.
American Depositary Shares141146
PART II142147
ITEM 13Defaults, Dividend Arrearages and Delinquencies142147
ITEM 14Material Modifications to the Rights of Security Holders and Use of Proceeds142147
ITEM 15Controls and Procedures142147
ITEM 16Reserved144149
ITEM 16AAudit Committee Financial Expert144149
ITEM 16BCode of Ethics144149
ITEM 16CPrincipal Accountant Fees and Services144149
ITEM 16DExemptions from the Listing Standards for Audit Committees145150
ITEM 16EPurchases of Equity Security by the Issuer and Affiliated Purchasers145150
ITEM 16FChange in Registrant's Certifying Accountant145150
ITEM 16GCorporate Governance145150
ITEM 16H  
Mine Safety Disclosure149154
ITEM 17Financial Statements149154
ITEM 18Financial Statements149154
ITEM 19Exhibits149154



iiv

INTRODUCTION
We maintain our accounts in Renminbi Yuan ("Renminbi" or "RMB"), the lawful currency of the People's Republic of China (the "PRC" or "China"). References herein to "US$" or "U.S. dollars" are to United States Dollars, references to "HK$" are to Hong Kong Dollars, and references to "S$" are to Singapore Dollars. References to ADRs and ADSs are to American Depositary Receipts and American Depositary Shares, respectively. Translations of amounts from Renminbi to U.S. Dollars are solely for the convenience of the reader. Unless otherwise indicated, any translations from Renminbi to U.S. Dollars or from U.S. Dollars to Renminbi were translated at the averagemiddle exchange rate announced by the People's Bank of China (the "PBOC Rate") on December 31, 201628, 2018 of US$1.00 to RMB6.9370.RMB6.8632. No representation is made that the Renminbi or U.S. Dollar amounts referred to herein could have been or could be converted into U.S. Dollars or Renminbi, as the case may be, at the PBOC Rate or at all.
References to "A Shares" are to common tradable shares issued to PRC domestic shareholders.
References to the "central government" referare to the national government of the PRC and its various ministries, agencies and commissions.
References to the "Company", "we","Company," "we," "our" and "us" include, unless the context requires otherwise, Huaneng Power International, Inc. and the operations of our power plants and our construction projects.
References to "HIPDC" are to Huaneng International Power Development Corporation and, unless the context requires otherwise, include the operations of the Company prior to the formation of the Company on June 30, 1994.
References to "Huaneng Group" are to China Huaneng Group.Group Co., Ltd.
References to "local governments" in the PRC are to governments at all administrative levels below the central government, including provincial governments, governments of municipalities directly under the central government, municipal and city governments, county governments and township governments.
References to "our power plants" are to the power plants that are wholly owned by the Company or to the power plants in which the Company owns majority equity interests.
References to the "PRC Government" include the central government and local governments.
References to "provinces" include provinces, autonomous regions and municipalities directly under the central government.
References to "Singapore" are to the Republic of Singapore.
iii
References to the "State Plan" refer to the plans devised and implemented by the PRC Government in relation to the economic and social development of the PRC.
References to "tons" are to metric tons.
Previously, the Overseas Listed Foreign Shares were also referred to as the "Class N Ordinary Shares" or "N Shares".Shares." Since January 21, 1998, the date on which the Overseas Listed Foreign Shares were listed on The Stock Exchange of Hong Kong Limited by way of introduction, the Overseas Listed Foreign Shares have been also referred to as "H Shares".Shares."
iv

GLOSSARY
actual generationThe total amount of electricity generated by a power plant over a given period of time.
auxiliary powerElectricity consumed by a power plant in the course of generation.

availability factorFor any period, the ratio (expressed as a percentage) of a power plant's available hours to the total number of hours in such period.
available hoursFor a power plant for any period, the total number of hours in such period less the total number of hours attributable to scheduled maintenance and planned overhauls as well as to forced outages, adjusted for partial capacity outage hours.
capacity factorThe ratio (expressed as a percentage) of the gross amount of electricity generated by a power plant in a given period to the product of (i) the number of hours in the given period multiplied by (ii) the power plant's installed capacity.
demandFor an integrated power system, the amount of power demanded by consumers of energy at any point in time.
dispatchThe schedule of production for all the generating units on a power system, generally varying from moment to moment to match production with power requirements. As a verb, to dispatch a plant means to direct the plant to operate.
GWGigawatt. One million kilowatts.
GWhGigawatt-hour. One million kilowatt-hours. GWh is typically used as a measure for the annual energy production of large power plants.
installed capacityThe manufacturers' rated power output of a generating unit or a power plant, usually denominated in MW.
kVKilovolt. One thousand volts.
kWKilowatt. One thousand watts.
kWhKilowatt-hour. The standard unit of energy used in the electric power industry. One kilowatt-hour is the amount of energy that would be produced by a generator producing one thousand watts for one hour.
MVAMillion volt-amperes. A unit of measure used to express the capacity of electrical transmission equipment such as transformers.
MWMegawatt. One million watts. The installed capacity of power plants is generally expressed in MW.
MWhMegawatt-hour. One thousand kilowatt-hours.
peak loadThe maximum demand on a power plant or power system during a specific period of time.
planned generationAn annually determined target gross generation level for each of our operating power plants used as the basis for determining planned output.
total outputThe actual amount of electricity sold by a power plant in a particular year, which equals total generation less auxiliary power.
transmission lossesElectric energy that is lost in transmission lines and therefore is unavailable for use.
v

PART I
ITEM 1   Identity of Directors, Senior Management and Advisers
ITEM 1IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.
ITEM

2   Offer Statistics and Expected Timetable
ITEM 2OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3   Key Information
A.            
ITEM 3KEY INFORMATION
A.Selected financial data
Our consolidated data of financial position as of December 31, 20162018 and 20152017 and the consolidated income statement and cash flow data for each of the years in the three-year period ended December 31, 20162018 are derived from the historical financial statements included herein. Our consolidated data of financial position as of December 31, 2014, 20132016, 2015 and 20122014 and consolidated income statement and cash flow data for each of the years in the two-year period ended December 31, 2013,2015 are derived from the historical financial statements not included herein. The Selected Financial Data should be read in conjunction with the consolidated financial statements and "Item 5 Operating and Financial Reviews and Prospects".Prospects." The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. The Selected Financial Data may not be indicative of future earnings, cash flows or financial position.
 Year Ended December 31,  Year Ended December 31, 
 2012  2013  2014  2015  2016  2014  2015  2016  2017  2018 
RMB in thousands except
per share data
 (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
 RMB in thousands, except per share data 
Consolidated Income Statement DataConsolidated Income Statement Data    
Operating revenue  133,966,659   133,832,875   125,406,855   128,904,873   113,814,236   125,406,855   128,904,873   113,814,236   152,459,444   169,550,624 
Tax and levies on operations  (672,040)  (1,043,855)  (932,485)  (1,157,760)  (1,177,818)  (932,485)  (1,157,760)  (1,177,818)  (1,376,312)  (1,788,998)
Operating expenses  (116,337,679)  (108,677,981)  (99,199,728)  (98,604,187)  (94,258,678)  (99,199,728)  (98,604,187)  (94,258,678)  (141,899,742)  (157,647,361)
Profit from operations  16,956,940   24,111,039   25,274,642   29,142,926   18,377,740   25,274,642   29,142,926   18,377,740   9,183,390   10,114,265 
Interest income  175,402   170,723   159,550   160,723   147,063   159,550   160,723   147,063   198,906   234,604 
Financial expenses, net  (9,063,875)  (7,693,363)  (7,823,606)  (7,970,070)  (7,067,602)  (7,823,606)  (7,970,070)  (7,067,602)  (9,604,645)  (10,647,311)
Other investment income  187,131   224,908   80,580   115,238   1,070,034 
(Loss)/Gain on fair value changes of
financial assets/liabilities
  (1,171)  (5,701)  42,538   (16,742)  (12,986)
Other investment income/(loss)  80,580   115,238   1,070,034   1,742,081   (278,669)
Gain/(loss) on fair value changes of financial assets/liabilities  42,538   (16,742)  (12,986)  856,786   726,843 
Share of profits less losses of associates and joint ventures  622,358   615,083   1,315,876   1,525,975   1,298,889   1,315,876   1,525,975   1,298,889   425,215   1,823,415 
Profit before income tax expense  8,876,785   17,422,689   19,049,580   22,958,050   13,813,138   19,049,580   22,958,050   13,813,138   2,801,733   1,973,147 
Income tax expense  (2,510,370)  (4,522,671)  (5,487,208)  (5,698,943)  (3,465,151)  (5,487,208)  (5,698,943)  (3,465,151)  (1,217,526)  (643,173)
Net profit  6,366,415   
12,900,018
   
13,562,372
   
17,259,107
   
10,347,987
   13,562,372   17,259,107   10,347,987   1,584,207   1,329,974 
Attributable to: ��                                      
Equity holders of the Company  5,512,454   10,426,024   10,757,317   13,651,933   8,520,427   10,757,317   13,651,933   8,520,427   1,579,836   734,435 
Non-controlling interests  853,961   2,473,994   2,805,055   3,607,174   1,827,560   2,805,055   3,607,174   1,827,560   4,371   595,539 
Basic earnings per share  0.39   0.74   0.76   0.94   0.56   0.76   0.94   0.56   0.10   0.03 
Diluted earnings per share  0.39   0.74   0.76   0.94   0.56   0.76   0.94   0.56   0.10   0.03 

  As of December 31, 
  2014  2015  2016  2017  2018 
  RMB in thousands 
Consolidated Financial Position Data   
Current assets  37,865,284   33,565,403   36,966,616   48,537,710   61,799,069 
Property, plant and equipment  188,379,057   219,673,070   223,061,809   284,328,093   282,061,272 
Available-for-sale financial assets  4,333,377   5,077,863   3,406,032   1,604,993   — 
Other equity instrument investments  —   —   —   —   2,083,419 
Investments in associates and joint ventures  17,626,910   19,745,192   19,632,113   19,517,623   19,553,964 
Land use rights and other non-current assets  10,636,352   14,384,078   14,524,284   20,900,635   32,535,803 
Power generation license  3,720,959   3,679,175   3,849,199   3,916,246   4,014,972 
Deferred income tax assets  884,274   1,064,391   1,263,957   2,300,091   2,282,585 
Goodwill  11,725,555   11,677,182   12,135,729   15,484,120   15,572,227 
Total assets  275,171,768   308,866,354   314,839,739   396,589,511   419,903,311 
Current liabilities  (104,846,121)  (123,836,633)  (130,196,251)  (155,950,488)  (138,206,214)


13

  As of December 31, 
  2012  2013  2014  2015  2016 
RMB in thousands (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
Consolidated Financial Position Data               
Current assets  36,086,261   34,186,911   37,865,284   33,565,403   36,966,616 
Property, plant and equipment  177,013,627   181,415,181   188,379,057   219,673,070   223,061,809 
Available-for-sale financial assets  3,052,822   3,111,164   4,333,377   5,077,863   3,406,032 
Investments in associates and joint ventures  14,596,771   16,678,694   17,626,910   19,745,192   19,632,113 
Land use rights and other non-current assets  9,316,455   9,593,252   10,636,352   14,384,078   14,524,284 
Power generation license  4,084,506   3,837,169   3,720,959   3,679,175   3,849,199 
Deferred income tax assets  532,387   652,358   884,274   1,064,391   1,263,957 
Goodwill  14,417,543   
12,758,031
   
11,725,555
   
11,677,182
   
12,135,729
 
Total assets  259,100,372   
262,232,760
   
275,171,768
   
308,866,354
   
314,839,739
 
Current liabilities  (93,594,320)  (98,978,845)  (104,846,121)  (123,836,633)  (130,196,251)
Non-current liabilities  (99,545,710)  (88,060,941)  (85,542,941)  (83,336,032)  (82,456,751)
Total liabilities  (193,140,030)  (187,039,786)  (190,389,062)  (207,172,665)  (212,653,002)
Total equity  65,960,342   
75,192,974
   
84,782,706
   
101,693,689
   
102,186,737
 
  As of December 31 
  2014  2015  2016  2017  2018 
  RMB in thousands 
Consolidated Financial Position Data   
Non-current liabilities            (85,542,941)  (83,336,032)  (82,456,751)  (133,024,419)  (165,575,427)
Total liabilities            (190,389,062)  (207,172,665)  (212,653,002)  (288,974,907)  (303,781,641)
Total equity            (84,782,706)  (101,693,689)  (102,186,737)  (107,614,604)  (116,121,670)

 Year Ended December 31,  Year Ended December 31, 
 2012  2013  2014  2015  2016  2014  2015  2016  2017  2018 
RMB in thousands except per share data (RMB)  (RMB)  (RMB)  (RMB)  (RMB) 
 RMB in thousands, except per share data 
Consolidated Cash Flow Data                              
               
Purchase of property, plant and equipment  (15,474,614)  (17,691,382)  (19,858,216)  (24,191,285)  (20,144,903)  (19,858,216)  (24,191,285)  (20,144,903)  (25,798,009)  (20,613,314)
Net cash provided by operating activities  26,928,082   40,239,429   33,320,067   42,362,708   31,510,824   33,320,067   42,362,708   31,510,824   29,197,363   28,727,978 
Net cash used in investing activities  (15,309,604)  (19,054,250)  (19,470,813)  (33,015,012)  (17,649,646)  (19,470,813)  (33,015,012)  (17,649,646)  (31,748,825)  (20,375,882)
Net cash used in financing activities  (9,816,900)  (22,240,088)  (10,894,180)  (14,140,659)  (13,601,850)
                    
Net cash (used in)/generated from financing activities  (10,894,180)  (14,140,659)  (13,601,850)  4,013,180   (2,243,070)
Other Company Data                                        
                    
Dividend declared per share  0.21   0.38   0.38   0.47   0.29   0.38   0.47   0.29   0.10   0.10 
Number of ordinary shares ('000)  14,055,383   14,055,383   14,420,383   15,200,383   15,200,383   14,420,383   15,200,383   15,200,383   15,200,383   15,698,093 
B.            
Note:
1.
As a result of the adoption of IFRS 15, Revenue from contracts with customers, with effect from January 1, 2018, the Company and its subsidiaries have changed its accounting policies in respect of revenue recognition. In accordance with the transitional provisions of the standard, the changes in accounting policies were adopted by way of opening balance adjustments to equity as at January 1, 2018. The adoption of IFRS 15 did not have a material impact on the consolidated financial statements. Figures in years earlier than 2018 are stated in accordance with the policies applicable in those years.
2.
The Company and its subsidiaries adopted IFRS 9, Financial instruments, from January 1, 2018. As a result, the Company and its subsidiaries have changed its accounting policies in relation to financial instruments. As allowed by IFRS 9, the Company and its subsidiaries have not restated information relating to prior years. Differences in the carrying amounts of the financial assets resulting from the adoption of IFRS 9 were recognised in reserves at January 1, 2018. There was no difference in the carrying amounts of the financial liabilities. Prior to January 1, 2018, figures were stated in accordance with the policies applicable in those years.

B.Capitalization and indebtedness
Not applicable.
C.            
C.Reasons for the offer and use of proceeds
Not applicable.
D.            
D.Risk factors
Risks relating to our business and the PRC's power industry
Government regulation of on-grid power tariffs and other aspects of the power industry may adversely affect our business
2
Similar to electric power companies in other countries, we are subject to governmental and electric grid regulations in virtually all aspects of our operations, including the amount and timing of electricity generations, the setting of on-grid tariffs, the performance of scheduled maintenance, and the compliance with power grid control and dispatch directives as well as environment protection regulations. There can be no assurance that these regulations will not change in the future in a manner which could adversely affect our business.
The on-grid tariffs for our planned output are subject to a review and approval process involving the NDRCNational Development and Reform Commission ("NDRC") and the relevant provincial government. Since April 2001, the PRC Government has been implementing an on-grid tariff-setting mechanism based on the operating terms of power plants as well as the average costs of comparable power plants. Pursuant to the NDRC circular issued in June 2004, the on-grid tariffs for our newly built power generating units commencing operation from June 2004 have been set on the basis of the average cost of comparable units adding tax and reasonable return in the regional grid. Any future reductions in our tariffs, or our inability to raise tariffs (for example, to cover any increased costs we may have to incur) as a result of the new on-grid tariff-setting mechanism, may adversely affect our revenue and profits.
In addition, the PRC Government started a program in 1999 to effect power sales through competitive bidding in some of the provinces where we operate our power plants. The on-grid tariffs for power sold through competitive bidding are generally lower than the pre-approved on-grid tariffs for planned output. In the more recent few years, power sales through competitive bidding only accounted for a small portion of our overall power sales.

4
Nevertheless, the PRC Government is seeking to expand the program. Any increased power sales through competitive bidding may reduce our on-grid tariffs and may adversely affect our revenue and profits.
Furthermore, the PRC Government started in 2009 to promote the practice of direct power purchase by large power end-users. Pursuant to the circular jointly issued by NDRC, the State Electricity Regulatory Commission ("SERC") and China National Energy Administration in June 2009, the direct transaction price shall include the direct transaction price, the grid transmitting price and the governmental fund and additional charges, of which the direct transaction price shall be freely determined through negotiation between the power generation company and the large power end-user. The price of direct power purchase shall be subject to the supply and demand in the power market. Furthermore, the scale and mode of the transaction are also subject to the structure and level of development of local economy. In terms of power generation companies engaged in direct power purchase, direct power sales constitute a portion of the total power sales, and the on-grid power tariffs for this portion are generally lower than the benchmark tariff of each region, thus affecting the on-grid power sales of the Company. For the past few years, the PRC Government continued the reform in the area of direct power purchase by large power end-users. In 2013, China National Energy Administration officially launched the direct power purchase program in seven provinces where we have power plants and the program has been steadily rolled out in other provinces,provinces. Although the direct power purchase may act as an alternative channel for our power sales, there is uncertainty as to the effect of the practice of direct power purchase over our operating results.results basing on the relatively lower tariffs generally for this portion.
The on-grid tariff-setting mechanism is evolving with the reforming of the PRC electric power industry. The PRC government announced a number of development and reform plans for the power market in 2016, covering areas including laws and regulations, comprehensive pilot plans, power transmission and distribution prices and supply side dynamics. dynamics, the establishment of the power exchanges, rules and market administration committees, and opening up incremental distribution business. In 2017, the development and reform plans have been further expanded to the nationwide scale, with multiple issuances made by the PRC government governing power development plan, electricity transmission and distribution price, opening up of the electricity generation and consumption plans, supply side dynamics, electricity power stock and ancillary market development, electricity exchange rules, market supervision and clean energy consumption, etc. In 2018, the development and reform entered into a implementation stage, reflected in the areas of distribution price reform, establishment of the power exchanges and ancilliary market and the incremental distribution network reform, etc.
There is no assurance that itgovernment regulations on the industry will not change in a manner which could adversely affect our business and results of operations.operations or the measures we take would effectively help us to adapt to the new changes and developments. See "Item 4 Information of the Company – B. Business Overview – Pricing Policy".Policy."
If our power plants receive less dispatching than planned generation, the power plants will sell less electricity than planned
Our profitability depends, in part, upon each of our power plants generating electricity to meet or surpass the planned generation, which in turn will be subject to a local demand for electric power and dispatching to the grids by the dispatch centers of the local grid companies.
The dispatch of electric power generated by a power plant is controlled by the dispatch center of the applicable grid companies pursuant to a dispatch agreement with us and to governmental dispatch regulations. In each of the markets we operate, we compete against other power plants for power sales. No assurance can be given that the dispatch centers will dispatch the full amount of the planned generation of our power plants. A reduction by the dispatch center in the amount of electric power dispatched relative to a power plant's planned generation could
3
have an adverse effect on the profitability of our operations. However, weWe have not encountered any such event in the past.situation before.
In August 2007, the General Office of the State Council issued a notice, promoting the energy saving electricity dispatch policy, which provides dispatching priority to electricity generated from renewable resources over electricity generated from unrenewable resources. For past years,In 2013, the government made continuous effort to improve energy saving, emission reductionencourage energy-saving power distribution. In 2014, the NDRC issued Guidance on Strengthening and resources allocation.Improving the Operation of Power Management Regulation. In 2015, the NDRC and China National Energy Administration ("NEA") jointly issued Guidelines on Improving Electric Power Operations and Deepening Clean Energy Generation confirming a system ensuring the full-priced purchasing of renewable energy, and requests furthering

5
the electric power differentiation system on coal-fired units. In 2016, the NDRC and China National Energy Administration issued three official documents, namely Notice on Issuing the Measures for the Administration of the Guaranteed Buyout of Electricity Generated by Renewable Energy Resources, Directive on the Measures for the Administration of the Guaranteed Buyout of Electricity Generated by Solarand, Wind Energy Resources and Provisionary, Measures for Priority Dispatch of Renewable Peaking Power Generation Units and Notice on Power Supply and Notice on the Measures on the Consumption of Renewable Energy in Tri-North Area. In 2017, NDRC and NEA issued Circular on Orderly Opening Up the Electricity Generation and Consumption Plans, Interim Measures for Guaranteeing the Safe Consumption of Nuclear Power, Pilot Rules on Inter-regional Spare Renewable Energy Electricity Power Stock Trading, Circular on the Establishment of Pilot Electricity Power Stock Exchange, Circular on Promoting Hydropower Consumption in Southwest China, and Solutions to Abandoning Hydro, Wind and Solar Energy, to promote the development of the power stock exchange and renewable power consumption. In 2018, the NDRC and NEA issued the Circular on Promoting the Capability to Adjust the Power System and Plan for Consumption of Clean Energy (2018-2020) to further developdirect the system ensuringdevelopment of the full-priced purchasing of renewableclean energy and push for the reform of the power market. The NEA also solicited for public opinions on the Circular on the Renewable Power Quota System, proposing a coordination between the power suppliers and users to encourage renewable energy producers to join the market for peaking power supplies. take responsibilities under quota system.
We cannot assure that such implementation will not result in any decrease in the amount of the power dispatched by any of our power plants.
The power industry reform may affect our business
The PRC Government in 2002 announced and started to implement measures to further reform the power industry, with the ultimate goal of creating a more open and fair power market. As part of the reform, five power generation companies, including Huaneng Group, were created or restructured to take over all the power generation assets originally belonging to the State Power Corporation of China. In addition, two grid companies were created to take over the power transmission and distribution assets originally belonging to the State Power Corporation of China. An independent power supervisory commission, the SERC, was created to regulate the power industry. There might be further reforms, and it is uncertain how these reform measures and any further reforms will be implemented and impact our business.
In December 2012, the PRC Government issued a notice to further reform the coal pricing mechanism, which mandated (1) the termination of all key coal purchase contracts between power generation companies and coal suppliers, and the abolition of national guidance of the railway transportation capacity plan, and (2) the cancellation of the dual-track coal pricing system, effective from January 1, 2013. For a detailed discussion of the reform, see "Item 4 Information on the Company – B. Business overview – Pricing policy".policy." There can be no assurance that such coal pricing reform will not adversely affect our results of operation. In 2013, the PRC Government continued the reform in power industry. In July 2013, China National Energy Administration issued the Notice on Direct Purchases between Power End-users and Power Generation Companies, which officially implemented the direct purchases programs by large end-users.
On March 15, 2015, the Opinions of CPC Central Committee and State Council Regarding Further Deepening Reform of the Electricity System was released, according to which the reform will be focused and directed to orderly liberalize the tariff of the competitive markets other than electricity transmission and distribution, gradually allow investment from private investors in power distribution and selling businesses, consistently open the power generation market other than those for non-profit purpose or under regulation, push for independent and regulated operation of the parties involved in electricity transactions, continue the study of regional power grid construction and the transmission and distribution system suitable for China, further strengthen government regulations for enhanced power coordination and planning, and further improve safe and efficient operation of electricity and reliable power supply. These reforms will have a profound impact on the business models of power generation enterprises and may intensify the competition which may adversely affect our business.
In November 2015, the NDRC and China Energy Administration issued six official documents regarding electricity system reform, namely Opinions on Deepening Electricity Price Reform, Opinions on Furthering Electricity Market Development, Opinions on Establishing and Institutionalizing Electricity Purchasing Organizations, Opinions on Orderly OpenOpening Up Electricity Generation and Consumption, Opinions on Deepening Electricity Sales Reform and Guidelines on Fortifying and Institutionalizing the Management of Coal-fired Power Plants, further confirming the direction of the newest round of reforms of the electricity system.
4
In 2016, the PRC Government implemented various measures to further reform the power industry on many fronts, including (i) seeking public comments on the proposed amendment to the electric power law of the People's Republic of China, (ii) implementing structural reform pilot programs in nineteen provinces; (iii) establishing national electricity exchanges in Beijing and Guangzhou, (iii) setting up independent third party credit rating system for market players, (iv) promulgating rules governing the price and method of direct power purchase/competitive bidding programs as well as the market entrance and exit mechanism, and (v) furthering reform on the pricing mechanism for power transmission and distribution prices.

6
In 2017, The PRC Government issued various measures to further reform the power industry, including: (i) establishing the national power development plan covering the consumption share of the non-fossil fuel, heating system reform based on "coal to gas," "coal to electricity" and renewable energy development, and new technology programs; (ii) speeding up the reform of electricity transmission and distribution price; (iii) orderly opening up the electricity generation and consumption plans; (vi) establishing the union of power exchanges and speeding up the electricity stock and ancillary service market development; (v) enhancing the development of the electricity power supply side reform; (vi) issuing the rules for monthly inter-region electricity power trade in South China; and (vii) furthering the development of the power-related credit system.
In 2018, NDRC and NEA issued Circular on Promoting the Capability to Adjust the Power System and Plan for Consumption of Clean Energy (2018-2020), Circular on the Renewable Power Quota System and Notice on Actively Promoting Market-oriented Power Exchange and Further Improving the Trading Mechanism to futher promote the consumption of renewable energy and increase the utilization rate of the renewable energy. From 2018, users from coal, steel, non-ferrous metal and construction materials industries, among others, shall participate in the market-oriented power exchange process instead of applying the catalog price. Users are encouraged to negotiate with power generating enterprises to establish the “baseline with floating adjustment” pricing mechanism.
These reform actions will have a profound impact on the operations of power generation companies and may intensify competition, which may negatively impact our company.
We are effectively controlled by Huaneng Group and HIPDC, whose interests may differ from those of our other shareholders
Huaneng Group, directly or indirectly holds 13.83%45.67% of our total outstanding shares, and HIPDC directly holds 33.33%32.28% of our total outstanding shares. As Huaneng Group is HIPDC's parent company, they may exert effective control over us acting in concert. Their interests may sometimes conflict with those of our other minority shareholders. There is no assurance that Huaneng Group and HIPDC will always vote their shares, or direct the directors nominated by them to act in a way that will benefit our other minority shareholders.
Disruption in coal supply and its transportation as well as increase in coal price may adversely affect the normal operation of our power plants
A substantial majority of our power plants are fueled by coal. The coal supply for our power plants is arranged through free negotiation between power companies, coal suppliers, and railway authorities. Thus, any material disruption in coal supply and its transportation may adversely affect our operations. To date, we have not experienced shutdowns or reduced electricity generation caused by inadequate coal supply or transportation services.
In addition, our results of operations are sensitive to the fluctuation of coal price. For the past few years, the Chinese coal market was showing a surplus in production, resulting in a significantly decreased coal price. However, the policies of reducing overcapacity of the Chinese coal producers implemented in early 2016 led to a supply shortage with surging coal prices in the Chinese coal market. There is no assurance that thisthe increase in coal prices will not continue in the future, and if the price increase does continue, there is no assurance that we will be able to adjust our power tariff to pass on the increase in the coal price in time. Although the government has established a coal-electricity price linkage mechanism to allow power generation companies to increase their power tariffs to cope with the increase in the coal price, the implementation of the mechanism involves uncertainties. For a detailed discussion of the coal-electricity price linkage mechanism, see "Item 4 Information on the Company – B. Business overview – Pricing policy".policy."

7
Power plant development, acquisition and construction are a complex and time-consuming process, the delay of which may negatively affect the implementation of our growth strategy
We develop, construct, manage and operate large power plants. Our success depends upon our ability to secure all required PRC Government approvals, power sales and dispatch agreements, construction contracts, fuel supply and transportation and electricity transmission arrangements. Delay or failure to secure any of these could increase cost or delay or prevent commercial operation of the affected power plant. Although each of our power plants in operation and the power plants under construction received all required PRC Government approvals in a timely fashion, no assurances can be given that all the future projects will receive approvals in a timely fashion or at all. In addition, due to national policies and related regulations promoting environment-friendly energy, and the restrictions on coal fired projects, the approval requirements and procedures for coal fired power plant are becoming increasingly stringent, which may negatively affect the approval process of our new projects of this kind.projects.
We have generally acted as, and intend to continue to act as, the general contractor for the construction of our power plants. As with any major infrastructure construction effort, the construction of a power plant involves many risks, including shortages of equipment, material and labor, labor disturbances, accidents, inclement weather, unforeseen engineering, environmental, geological, delays and other problems and unanticipated cost increases, any of which could give rise to delays or cost overruns. Construction delays may result in loss of revenues. Failure to
5
complete construction according to specifications may result in liabilities, decrease power plant efficiency, increase operating costs and reduce earnings. Although the construction of each of our power plants was completed on or ahead of schedule and within its budget, no assurance can be given that construction of future projects will be completed on schedule or within budget.
In addition, from time to time, we may acquire existing power plants from HIPDC, Huaneng Group or other parties. The timing and the likelihood of the consummation of any such acquisitions will depend, among other things, on our ability to obtain financing and relevant PRC Government approvals and to negotiate relevant agreements for terms acceptable to us.
Substantial capital is required for investing in or acquiring new power plants and failure to obtain capital on reasonable commercial terms will increase our finance cost and cause delay in our expansion plans
An important component of our growth strategy is to develop new power plants and acquire operating power plants and related development rights from HIPDC, Huaneng Group or other companies on commercially reasonable terms. Our ability to arrange financing and the cost of such financing depend on numerous factors, including general economic and capital market conditions, credit availability from banks or other lenders, investor confidence in us and the continued success of our power plants. Although we have not been materially affected by inflation in the past, there is no assurance that we would not be affected in the future. In 2015, the PBOC repeatedly cut down money market rate and reserve ratio to stabilize China's money supply. The PBOC continuedChinese government is expected to implement a prudentactive fiscal policies and sound monetary policy,policies. The fiscal policies would be focused on reducing taxes and other fiscal levies with moderatethe view to addressing, in collaboration with the implementation of monetary polies, funding difficulties and timely adjustments in 2016, which helped the Companyprohibitive funding prices encountered by business enterprises. The sound monetary policies would be implemented to manage its financing costs. We expect thatunderscore overall economic stability, strengthen counter-cyclical monetary administration, optimize credit structure, and maintain reasonably adequate liquidity. Accordingly, it is expected that the prudent monetary policymarket would have reasonably sufficient funding in 2019 and funding costs are expected to continue.be consistent with slight decline. The interest bearing debts of the Company are mostly denominated in Renminbi, changes in benchmark lending interest rate published by the PBOC will have a direct impact on the Company's cost of debt. InRegarding our debts denominated in other currencies, it is less likely that the Singaporean capital market, the SOR interest rate will continue to rise as a result ofU.S. and other major economies would further increase in the interest rates for U.S. dollardue to expected slowdown of the global economy. As the debts denominated loan as well as depreciation of Singapore dollar, which will likely increasein other currencies represent a small percentage in our total debts, the financing costs of Tuas Power. The change of the benchmark lending interest rates published by the PBOC willof foreign currencies are not expected to have direct impactmaterial effect on the borrowingCompany. Though the finance costs of the Company. As a result,are expected to be consistent with slight decline, we may not be able to carry out our expansion plans due to the failure to obtain financing or increased financing costs. Furthermore, although we have historically been able to obtain financing on terms acceptable to us, there can be no assurance that financing for future power plant developments and acquisitions will be available on terms acceptable to us or, in the event of an equity offering, that such offering will not result in substantial dilution to existing shareholders.
Operation of power plants involves many risks and we may not have enough insurance to cover the economic losses if any of our power plants' ordinary operation is interrupted
The operation of power plants involves many risks and hazards, including breakdown, failure or substandard performance of equipment, improper installation or operation of equipment, labor disturbances, natural disasters, environmental hazards and industrial accidents. The occurrence of material operational problems, including but not limited to the above events, may adversely affect the profitability of a power plant.

8
Our power plants in the PRC currently maintain insurance coverage that is typical in the electric power industry in the PRC and in amounts that we believe to be adequate. Such insurance, however, may not provide adequate coverage in certain circumstances. In particular, in accordance with industry practice in the PRC, our power plants in the PRC do not generally maintain business interruption insurance, or any third party liability insurance other than that included in construction all-risks insurance or erection all-risks insurance to cover claims in respect of bodily injury or property or environment damage arising from accidents on our property or relating to our operation. Although each of our power plants has a good record of safe operation, there is no assurance that the afore-mentioned accidents will not occur in the future.
If the PRC Government adopts new and stricter environmental laws and additional capital expenditure is required for complying with such laws, the operation of our power plants may be adversely affected and we may be required to make more investment in compliance with these environmental laws
Most of our power plants, being coal-fired power plants, discharge pollutants into the environment. We are subject to central and local government environmental protection laws and regulations, which currentlyregulations. The Environmental Protection Tax Law of People’s Republic of China came into effect in 2018 and impose
6
base-level discharge feesenvironmental protection tax for various polluting substances and graduated schedules of fees for the discharge of waste substances. The amounts of discharge fees are determined by the local environmental protection authority based on the periodic inspection of the type and volume of pollution discharges.  In addition, such environmental protection laws and regulations also set up the goal for the overall control on the discharge volume of key polluting substances. These laws and regulations impose fines for violations of laws, regulations or decrees and provide for the possible closure by the central government or local government of any power plant which fails to comply with orders requiring it to cease or cure certain activities causing environmental damage. Also, the PRC Government requires thermal power plants to equip all units with desulphurization and denitrification facilities, and sets higher anti-dust standards. In September 2014, the NDRC, the Ministry of Environmental ProtectionThe Chinese government is working on a pollution prevention and the China National Energy Administration jointly issued the 2014-2020 Action Planscontrol campaign, which shall subject us to a more stringent  standards for Energy Saving, Emission Reductionour air pollution control, waste water pollution control and Renovation of Coal-fired Generation Units, imposing stricter requirements for efficient and clean development of coal-fired generating plants.ecological environmental protection efforts. Such stringent standards, together with the increase in the discharge fees,environmental protection tax, will result in the increases in the environmental protection expenditure and operating costs of power plants and may have an adverse impact on our operating results.
We attach great importance to the environmental related matters of our existing power plants and our power plants under construction. We have implemented a system that is designed to control pollution caused by our power plants, including the establishment of an environmental protection officeadministration system at each power plant, adoption of relevant control and evaluation procedures and the installation and maintenance of certain pollution control equipment. We are also upgradingupgraded the super low emission facilities on our coal fired units, which may be completed by the end of year 2017.coal-fired units. We believe our environmental protection systems and facilities for the power plants are adequate for us to comply with applicable central government and local government environmental protection laws and regulations. However, the PRC Government may impose new, stricter laws and regulations on environmental protection, which may adversely affect our operations.
The PRC is a party to the Framework Convention on Climate Change ("Climate Change Convention"), which is intended to limit or capture emissions of "greenhouse" gases, such as carbon dioxide. Ceilings on such emissions could limit the production of electricity from fossil fuels, particularly coal, or increase the costs of such production. At present, ceilings on the emissions of "greenhouse" gases have not been assigned to developing countries under the Climate Change Convention. Therefore, the Climate Change Convention would not have a major effect on us in the short term because the PRC as a developing country is not obligated to reduce its emissions of "greenhouse" gases at present, and the PRC Government has not adopted relevant control standards and policies. If the PRC were to agree to such ceilings, or otherwise reduce its reliance on coal-fired power plants, our business prospects could be adversely affected. In addition, pilot carbon emission trading programs have been conducted in certain regions and are expected to be gradually implemented throughout China. This may also adversely affect our business and financial prospects in the future.
Our business benefits from certain PRC Government tax incentives. Expiration of, or changes to, the incentives could adversely affect our operating results
Prior to January 1, 2008, according to the relevant income tax law, domestic enterprises were, in general, subject to statutory income tax of 33% (30% enterprise income tax and 3% local income tax). If these enterprises are located in certain specified locations or cities, or are specifically approved by State Administration of Taxation, a lower tax rate would be applied. Effective from January 1, 1999, in accordance with the practice notes on the PRC

9
income tax laws applicable to foreign invested enterprises investing in energy and transportation infrastructure businesses, a reduced enterprise income tax rate of 15% (after the approval of State Administration of Taxation) was applicable across the country. We applied this rule to all of our wholly owned operating power plants after obtaining the approval of State Administration of Taxation. In addition, certain power plants were exempted from enterprise income tax for two years starting from the first profit-making year, after offsetting all tax losses carried forward from the previous years (at most of five years), followed by a 50% reduction of the applicable tax rate for the next three years. The statutory income tax was assessed individually based on each of their results of operations.
On March 16, 2007, the Enterprise Income Tax Law of PRC, or the New Enterprise Income Tax Law, was enacted, and became effective on January 1, 2008 and was amended on February 24,2017.24, 2017. The New Enterprise Income Tax Law imposes a uniform income tax rate of 25% for domestic enterprises and foreign invested enterprises. Therefore, our power plants subject to a 33% income tax rate prior to January 1, 2008 are subject to a lower tax rate of 25% starting on January 1, 2008. With regard to our power plants entitled to a reduced enterprise
7
income tax rate of 15% prior to January 1, 2008, their effective tax rate gradually increased to 25% within a five-year transition period commencing on January 1, 2008. Accordingly, the effective tax rate of our wholly owned power plants has increased over time. In addition, although our power plants entitled to tax exemption and reduction under the income tax laws and regulations that are effective prior to the New Enterprise Income Tax Law will continue to enjoy such preferential treatments until the expiration of the same, newly established power plants will not be able to benefit from such tax incentives, unless they can satisfy specific qualifications, if any, provided by then effective laws and regulations on preferential tax treatment.
The increase of applicable income tax rate and elimination of the preferential tax treatment with regard to certain of our power plants may adversely affect our financial condition and results of operations. Moreover, our historical operating results may not be indicative of our operating results for future periods as a result of the expiration of the tax benefits currently available to us.
In addition, according to the New Enterprise Income Tax Law and its implementation rules, any dividends derived from the distributable profits accumulated from January 1, 2008 and paid to the shareholders who are non-resident enterprises in the PRC will be subject to the PRC withholding tax at the rate of 10%. The withholding tax will be exempted if such dividends are derived from the distributable profits accumulated before January 1, 2008. Under a notice issued by the State Administration of Taxation of the PRC on November 6, 2008, we are required to withhold PRC income tax at the rate of 10% on annual dividends paid for 2008 and later years payable to our H Share investors who are non-resident enterprises.
Fluctuations in exchange rates could have an adverse effect on our results of operations and your investment
As a power producer operating mainly in China, we collect most of our revenues in Renminbi and have to convert Renminbi into foreign currencies to (i) repay some of our borrowings which are denominated in foreign currencies, (ii) purchase foreign made equipment and parts for repairs and maintenance, (iii) purchase fuel from overseas suppliers, and (iv) pay out dividend to our overseas shareholders.
The value of the Renminbi against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in China's political and economic conditions. The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the PBOC. On July 21, 2005, the PRC government introduced a floating exchange rate system to allow the value of Renminbi to fluctuate within a regulated band based on market supply and demand and by reference to a basket of foreign currencies. Renminbi appreciated by more than 20% against the U.S. dollar between July 2005 and July 2008. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. On June 19, 2010, the PBOC decided to further promote the reform of the Renminbi exchange rate formation mechanism, and improve the flexibility of Renminbi exchange rate. The Company and its subsidiaries (both domestic and overseas) have debts denominated in foreign currencies, fluctuations in the exchange rates of Renminbi and Singapore dollar into foreign currencies createscreate exchange risk for the Company. With the internationalization process and RMB joining the SDR, RMB exchange rate may continue to fluctuate in the future. In August 2015, the PBOC perfectedfurther improved its midpoint rate determination mechanism, which led to a 2% depreciation of Renminbi against the U.S. dollar. With effect from October 1, 2016, RMB is determined to be a freely usable currency and will be included in the SDR basket as a fifth currency. In the fourth quarter of 2016, the RMB has depreciated significantly in the backdrop of a surging U.S. dollar and persistent capital outflows of China.

10
In 2017, the RMB has appreciated significantly in the backdrop of a weak U.S. dollar, robust Chinese economy in 2017 and stringent foreign exchange regulation. In the first quarter of 2018, the RMB continued to appreciate. However, the RMB depreciated significantly in the remaining quarters of 2018. However, it is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future. There remains significant international pressure on the PRC Government to further liberalize its currency policy, which could result in further fluctuations in the value of the Renminbi against the U.S. dollar. However, there is no assurance that there will not be a devaluation of Renminbi in the future. If there is such devaluation, our debt servicing cost will increase and the return to our overseas investors may decrease.
Our revenues from SinoSing Power Pte. Ltd. ("SinoSing Power") and its subsidiaries are collected in Singapore dollars. However, commencing from 2008, the operating results of SinoSing Power and its subsidiaries were consolidated into our financial statements, which use Renminbi as the presentation currency. The situation of our Pakistan operation is similar after we consolidate our business in Pakistan since December 2018. As a result, we are exposed to foreign exchange fluctuations between Renminbi and the Singapore dollar.dollar or Pakistan Rupee. Appreciation of Renminbi against the Singapore dollar or Pakistan Rupee may cause an adverse impact on our operation results and foreign translation difference.
The audit report included in this annual report is prepared by an auditor who is not inspected by the Public Company Accounting Oversight Board and, as such, you are deprived of the benefits of such inspection
8
Auditors of companies that are registered with the U.S. Securities and Exchange Commission and traded publicly in the United States, including our independent registered public accounting firm, must be registered with the U.S. Public Company Accounting Oversight Board (United States) (the "PCAOB") and are required by the laws of the United States to undergo regular inspections by the PCAOB to assess their compliance with the laws of the United States and professional standards. Because we have substantial operations within the People's Republic of China and the PCAOB is currently unable to conduct inspections of the work of our auditors as it relates to those operations without the approval of the Chinese authorities, our auditor's work related to our operations in China is not currently inspected by the PCAOB. In May 2013, PCAOB announced that it had entered into a Memorandum of Understanding on Enforcement Cooperation with the China Securities Regulatory Commission ("CSRC") and the PRC Ministry of Finance, which establishes a cooperative framework between the parties for the production and exchange of audit documents relevant to investigations undertaken by PCAOB, the CSRC or the PRC Ministry of Finance in the United States and the PRC, respectively. PCAOB continues to be in discussions with the CSRC and the PRC Ministry of Finance to permit joint inspections in the PRC of audit firms that are registered with PCAOB and audit Chinese companies that trade on U.S. exchanges. On December 7, 2018, the Securities and Exchange Commission, or the SEC, and the PCAOB issued a joint statement highlighting continued challenges faced by the U.S. regulators in their oversight of financial statement audits of U.S.-listed companies with significant operations in China. The joint statement reflects a heightened interest in an issue that has vexed U.S. regulators in recent years. However, it remains unclear what further actions the SEC and PCAOB will take to address the problem.
This lack of PCAOB inspections of audit work performed in China prevents the PCAOB from regularly evaluating audit work of any auditors that was performed in China including that performed by our auditors. As a result, investors may be deprived of the full benefits of PCAOB inspections. Investors may lose confidence in our reported financial information and procedures and the quality of our financial statements.
Our independent registered public accounting firm may be temporarily suspended from practicing before the SEC. If a delay in completion of our audit process occurs as a result, we could be unable to timely file certain reports with the SEC, which may lead to the delisting of our stock
On January 22, 2014, Judge Cameron Elliot, an SEC administrative law judge, issued an initial decision suspending the Chinese member firms of the "Big Four" accounting firms, including our independent registered public accounting firm, from, among other things, practicing before the SEC for six months. In February 2014, the initial decision was appealed. While under appeal and in February 2015, the Chinese member firms of "Big Four" accounting firms reached a settlement with the SEC. As part of the settlement, each of the Chinese member firms of "Big Four" accounting firms agreed to settlement terms that include a censure; undertakings to make a payment to the SEC; procedures and undertakings as to future requests for documents by the US SEC; and possible additional proceedings and remedies should those undertakings not be adhered to.
If the settlement terms are not adhered to, Chinese member firms of "Big Four" accounting firms may be suspended from practicing before the SEC which could in turn delay the timely filing of our financial statements

11
with the SEC. In addition, it could be difficult for us to timely identify and engage another qualified independent auditor. A delinquency in our filings with the SEC may result in NYSE initiating delisting procedures, which could adversely harm our reputation and have other material adverse effects on our overall growth and prospect.
Forward-looking information may prove inaccurate
This document contains certain forward-looking statements and information relating to us that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. When used in this document, the words "anticipate," "believe," "estimate," "expect," "going forward" and similar expressions, as they relate to us or our management, are intended to identify forward-looking statement. Such statements reflect the current views of our management with respect to future events and are subject to certain risks, uncertainties and assumptions, including the risk factors described in this document. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. We do not intend to update these forward-looking statements.
9
There can be no assurance that we will not be passive foreign investment company, or PFIC, for United States federal income tax purposes for any taxable year, which could subject United States investors in the ADSs or our H sharesShares to significant adverse United States income tax consequences.consequences
We will be a "passive foreign investment company," or "PFIC," if, in the case of any particular taxable year, either (a) 75% or more of our gross income for such year consists of certain types of "passive" income or (b) 50% or more of the average quarterly value of our assets (as determined on the basis of fair market value) during such year produce or are held for the production of passive income (the "asset test"). For United States federal income tax purposes, and based upon our income and assets, we do not believe that we were classified as a PFIC for the taxable year ended December 31, 2016,2018, and do not anticipate becoming one in the foreseeable future.
While we do not expect to become a PFIC, because the value of our assets for purposes of the asset test may be determined by reference to the market price of the ADSs, fluctuations in the market price of the ADSs may cause us to become a PFIC for the current or subsequent taxable years. The determination of whether we will be or become a PFIC will also depend, in part, on the composition of our income and assets. Under circumstances where we determine not to deploy significant amounts of cash for active purposes, our risk of being a PFIC may substantially increase. Because there are uncertainties in the application of the relevant rules and PFIC status is a factual determination made annually after the close of each taxable year, there can be no assurance that we will not be a PFIC for the current taxable year or any future taxable year.
If we are a PFIC in any taxable year, a U.S. holderHolder (as defined in "Item 10. Additional Information—E. Taxation—United States federal income tax considerations") may incur significantly increased United States income tax on gain recognized on the sale or other disposition of the ADSs or H sharesShares and on the receipt of distributions on the ADSs or H sharesShares to the extent such gain or distribution is treated as an "excess distribution" under the United States federal income tax rules and such holders may be subject to burdensome reporting requirements. Further, if we are a PFIC for any year during which a U.S. holderHolder holds the ADSs or our H shares,Shares, we generally will continue to be treated as a PFIC for all succeeding years during which such U.S. holderHolder holds the ADSs or our H shares.Shares. For more information see "Item 10. Additional Information—E. Taxation—United States federal income tax considerations—Passive Foreign Investment Company Considerations."
Risks relating to doing business in the PRC
China's economic, political and social conditions as well as government policies could significantly affect our business
As of December 31, 2016,2018, the majority of our business, assets and operations are located in China. The economy of China differs from the economies of most developed countries in many respects, including government involvement, control of foreign exchange, and allocation of resources.

12
The economy of China has been transitioning from a planned economy to a more market-oriented economy. After multiple years of strenuous and sustained economic restructuring reforms, China has become a leading player in the global economy and a major contributing force to the economic revival and growth worldwide.
The PRC Government has implemented economic reform measures emphasizing utilization of market forces in the development of the economy of China and a higher level of autonomy for the private sector. Some of these measures will benefit the overall economy of China, but may have a negative effect on us for a short term. For example, our operating results and financial condition may be adversely affected by changes in taxation, changes in power tariff for our power plants, changes in the usage and costscost of State-controlled transportation services,fuels, increasingly stringent environment protection policies, and changes in State policies affecting the power industry.
Interpretation of PRC laws and regulations involves significant uncertainties
The PRC legal system is based on written statutes and their interpretation by the Supreme People's Court. Prior court decisions may be cited for reference but have limited valueare not considered as binding precedents.
10
We are subject to certain PRC regulations governing PRC companies that are listed overseas. These regulations contain certain provisions that are required to be included in the articles of association of these PRC companies and are intended to regulate the internal affairs of these companies. As the PRC regulations are constantly evolving with the goal of better protecting shareholder's interests, we may face greater uncertainties in the interpretation of PRC laws and regulations. Furthermore, the PRC regulations for protection of shareholder's rights are different from those applicable in the United States and/or exchanges where we are listed. Therefore we made it our policy to adopt the strictest standards of any listing rules potentially applicable to us. Some of these standards are incorporated in our articles of association and bylaws with the view to providing most protection for the interests of our shareholders.
Risks relating to our operations in Singapore
Our operations in Singapore are subject to a number of risks, including, among others, risks relating to electricity pricing, dispatching, fuel supply, project development, capital expenditure, environmental regulations, government policies, and Singapore's economic, political and social conditions. Any of these risks could materially and adversely affect our business, prospects, financial condition and results of operations.
Fluctuation in demand and intensified competition may adversely affect Tuas Power's business and results of operations.
Our operations in Singapore depend on market demand and are subject to competition. Overall power system demand grew by 2.5%2.2% in 20162018 over 2015.2017. The future growth is highly dependent on a sustained recovery in the Singapore and global economies. The liberalization of Singapore's power market and the further deregulation of its power industry have resulted in more intense competition among the power generation companies in Singapore. Tuas Power Group, or Tuas Power, one of our wholly owned business units, is one of the three largest power generation companies in Singapore. If Tuas Power is unable to compete successfully against other power generation companies in Singapore, its business, prospects, financial condition and results of operations may be adversely affected.
An electricity futures market was also established in 2015 through an incentive scheme by the authority to market makers (MM) in the futures market. This has attracted independent retailers which are expected to exert some price competition in the retail market. A Demand Response (DR) scheme is currently being established which could potentially introduce further price competition in the wholesale generation market in Singapore. Furthermore, the Singapore government recently announced plans to raise the adoption of solar energy to 350 MWp by 2020 and 1,000MWp beyond 2020, compared to 60around 183 MWp in 2016.third quarter 2018.
TP Utilities Pte Ltd ("TPU"), an entity in Tuas Power Group, sells utilities, such as steam, industrial water and demineralized water to industrial customers for their direct consumption. The timing for thosetime of potential customers of TPU to site their premises, if at all, is uncertain duesubject to economicmicroeconomic situations. The demand of the utilities by these customers may vary as well. Despite Tuas Power's efforts to develop its facilities in stages and/or in modules to provide sufficient capacity matching the demand, and require customers to pay minimum capacity payment charges

13
to mitigate the demand risk, its business and results of operations may be adversely affected by fluctuation in demand.
Regulatory changes of the vesting regime in Singapore could expose Tuas Power to electricity price volatility and adversely affect its business and results of operationsoperations
Tuas Power derives its revenue mainly from sale of electricity to the National Electricity Market of Singapore (the "NEMS") through a bidding process and vesting contracts under which a significant portion of power sales is predetermined by the Energy Market Authority ("EMA"). The vesting contract regime in Singapore is targeted at mitigation of market power in the wholesale electricity spot market. The regime achieves this objective by assigning a quantity of vesting contracts to generation companies, thereby limiting their incentives to exercise whatever level of market power they may possess. Vesting contracts are a form of bilateral contract imposed/vested on the major power generation companies in Singapore. Vesting contract price is set by the EMA, which is Singapore's power market regulator. Vesting contract price is set at the long run marginal cost of the most efficient base-loaded technology plant employed in Singapore and is reviewed every two years. On a quarterly basis, the EMA allows for vesting contract quantity to be adjusted to account for changes in demand (due to seasonality) and the vesting contract price to be adjusted to account for inflation and changes in fuel prices. Such a mechanism helps
11
protect the profit margins of the power generation companies in the Singapore market, such as Tuas Power, to a large degree. The quantity of vesting contract allocated to the power generation company depends on the proportion of such power generation company's capacity to the total licensed or planned generation capacity at the commencement of the vesting contracts regime. A portion of the volume under the Vesting Contract Scheme has also been allocated to the LNG Vesting Scheme - an incentive scheme where players who have committed to an initial tranche of LNG for Singapore are allocated electricity sale contracts. The volume allocated to the generation companies under the LNG vesting scheme is fixed for a period of 10 years until 2023. By the end of 2015, the vesting contract has been rolled back to 25% of system demand (inclusive of the LNG Vesting Scheme). Following an appeal by some of the players in the market, the vesting contract level has been maintained at 25% for 2016. Following EMA's review of the Vesting Contract Regime in 2016, it is determined that the vesting contract level will be maintained at 25% until the end of the first half of 2018 and it will be reduced to LNG vesting level by the second half of 2019. The vesting contract regime will be phased out by 2023 when the LNG vesting contract expires, which could lead to volatility in electricity prices and adversely affect our business, financial condition and results of operation..operation.
In July 2018, EMA issued a determination paper to allow vesting contract holders with steam turbine generation plants, i.e., Tuas Power, Senoko Energy and YTL PowerSeraya, to retain their allocated vesting quantities irrespective of whether the steam turbine generation plants are retired. This will facilitate the three generation companies in making commercial decisions on whether and when to retire their steam turbine generation plants so as to reduce overhead costs and free up resources.
The fuel cost of Tuas Power is exposed to volatility of international fuel price and foreign currency risk
The fuel for Tuas Power consists of natural gas, coal, biomass, fuel oil and diesel oil. Since the procurement price of natural gas is closely linked to oil price and the procurement price of coal and biomass is linked to a coal index, the fuel cost of Tuas Power is exposed to the volatility of international oil and coal prices. The prices of oil were on upward trend from January to September 2018 and coal, after dipping to low levelturned downwards in the first halfremaining months of 2016, have moved up2018. The price of coal remained strong in the second half of 2016.2018. In addition, the commitments for the purchase of fuel are denominated in U.S. dollars, which further exposes Tuas Power to foreign currency risk. Any increase in fuel price and/or appreciation of the U.S. dollar against the Singapore dollar will translate into an increase in fuel cost for Tuas Power. Part of this increase can be passed through electricity sale contracts and utilities sale contracts, while fuel and foreign exchange hedging strategies done appropriately will mitigate the impact of such increase. No assurance can be given that such increase will not adversely affect results of its operation. Tuas Power is highly dependent upon the import of gas via pipelines from Indonesia. The rapid and sharp fallmovement in the price of oil over the course of 20152018 has resulted in wide variation in the price for its various sources of gas supply within the same month. Any disruption of such supply would impact the normal operation of Tuas Power significantly. This risk has been mitigated through Tuas Power's contract to buy LNG for its incremental needs, although there is no assurance that, in the event of fuel supply shortfall, Tuas Power's operations will not be adversely affected.
ITEM 4   Information on the Company

A.           14
ITEM 4INFORMATION ON THE COMPANY
A.History and development of the Company
Our legal and commercial name is Huaneng Power International, Inc. Our head office is at Huaneng Building, 6 Fuxingmennei Street, Xicheng District, Beijing, People's Republic of China and our telephone number is (8610) 63226999. We were established in June 1994 as a company limited by shares organized under the laws of the People's Republic of China.
12The SEC maintains an Internet website that contains reports, proxy and information statements, and other information regarding us that filed electronically with the SEC, which can be accessed at http://www.sec.gov. Information about the Company and documents the Company submitted to the SEC are available on our website: http://www.hpi.com.cn/sites/english/Pages/default.aspx.
We completed our initial global public offering of 1,250,000,000 overseas listed foreign shares in October 1994, which were listed on the New York Stock Exchange (Stock Code: HNP) in the United States by issuing 31,250,000 ADSs. In January 1998, the foreign shares of the Company were listed on The Stock Exchange of Hong Kong Limited by way of introduction (Stock Code: 902). Subsequently, in March 1998, the Company successfully completed a global placing of 250,000,000 foreign shares along with a private placing of 400,000,000 domestic shares. In November 2001, the Company successfully completed the issuance of 350,000,000 A Shares (Stock Code: 600011) in the PRC, of which 250,000,000 domestic public shares were listed on the Shanghai Stock Exchange. In December 2010, the Company completed the non-public issuance of 1,500,000,000 A Shares and 500,000,000 H Shares. In November 2014, the Company completed the non-public issuance of 365,000,000 H Shares. In November 2015, the Company completed the non-public issuance of 780,000,000 H Shares. In October 2018, the Company completed the non-public issuance of 497,709,919 A Shares. Currently, the total share capital of the Company amounts to approximately 15.7 billion shares.
As resolved at the second meeting of the 8th session of the board of the Company on October 13, 2014 and adopted at the third extraordinary general meeting of the Company, we entered into the Huaneng Group Interests Transfer Agreement with Huaneng Group, and the HIPDC Interests Transfer Agreement and the Chaohu Power Interests Transfer Agreement with HIPDC. Pursuant to these transfer agreements, we acquired from Huaneng Group 91.8% interests of Hainan Power, 75% interests of Wuhan Power, 53.45% interests of Suzhou Thermal Power, 97% interests of Dalongtan Hydropower and 100% interests of Hualiangting Hydropower at a total price of RMB7.338 billion, and acquire from HIPDC 60% interests of Chaohu Power, 100% interests of Ruijin Power, 100% interests of Anyuan Power, 100% interests of Jingmen Thermal Power and 100% interest of Yingcheng Thermal Power Interests at a total price of RMB1.938 billion. The total consideration is RMB9.647 billion after adjustment of the profits generated from the date of valuation to the acquisition date in accordance with the equity transfer agreements. The transaction was completed in January 2015.
On November 20, 2015, we issued a total of 780 million new H shares by way of placement at the issuance price of HKD7.32 per share. The aggregate consideration received for these shares was approximately HKD5.71 billion. After this issuance, our total share capital increased from 14,420,383,440 shares to 15,200,383,440 shares, including an increase in our total share capital for H shares from 3,920,383,440 shares to 4,700,383,440 shares.
13
As resolved at the 2014 annual general meeting on June 25, 2015, our Company has been given a mandate to issue one or more tranches of short-term debentures in the PRC in a principal amount not exceeding RMB 15 billion on a rolling basis within 24 months of approval by the general shareholders' meeting.  On August 10 and October 20, 2016, we issued short-term debentures in two tranches each at principal amount of RMB3 billion with nominal annual interest rate of 2.50% and 2.60%, respectively.  Each of the debentures was denominated in RMB, issued at par value, and would mature in 365 days from issuance.
On October 14, 2016, the Company signed the Agreement for the Transfer of Equity Interests in Certain Companies with Huaneng Group (the "Transfer Agreement"). Pursuant to the Transfer Agreement, the Company shall accept the transfer of (i) 80% equity interest of Huaneng Shandong Power Limited; (ii) 100% equity interest of Huaneng Jilin Power Limited; (iii) 100% equity interest of Huaneng Heilongjiang Power Limited; and (iv) 90% equity interest of Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. from Huaneng Group for the consideration of RMB15,113,825,800.RMB15,501 million after certain adjustment of the profits generated from the date of valuation to the acquisition date in accordance with the equity transfer agreements. This transaction was considered and approved at the 21st meeting of the Eighth Session of the Board held on October 14, 2016, and was considered and approved at the 2016 Second Extraordinary General Meeting held on November 30, 2016. According toThe acquisition was completed on January 1, 2017, and the termstotal consideration has been settled in cash by December 31, 2017 after netting off with the receivables due from Huaneng Group.
On July 31, 2018, Shandong Power (a subsidiary of the agreements,Company) and Taishan Power entered into the Transfer Agreement, pursuant to which Shandong Power shall acquire from Taishan Power (i) 75% interests in the registered capital of Shandong Huaneng Liaocheng Thermal Power Company has paid 50%Limited (“Liaocheng Thermal Power”), (ii) 80% interests in the registered capital of Shandong Huaneng Laizhou Wind Power Generation Company Limited (“Laizhou Wind Power”), (iii) 80% interests in the registered capital of Shandong Huaneng Laiwu Thermal Power Company Limited (“Laiwu Thermal Power”), and (iv) 15% interests in the registered capital of Huaneng Laiwu Power Generation Limited (“Laiwu Power Generation”) at the consideration of RMB1,800,020,000. Upon completion of the consideration for such transaction to Huaneng Group on January 9, 2017.Transfer, Liaocheng Thermal Power, Laizhou Wind Power and Laiwu Thermal Power will become subsidiaries of Shandong Power.
See "Item 5 Operating and Financial Reviews and Prospects – Liquidity and Cash Resources" for a description of our principal capital expenditures since the beginning of the last three financial years.
B.          

15
B.Business overview
We are one of the China's largest independent power producers. producers and we have been striving for innovations in technologies, structure, and management since its incorporation. We were the first to introduce a 600 MW supercritical generating unit into China and we also started operating the first domestically built single 1,000 MW ultra-supercritical coal-fired generating unit, and the first digitalized 1,000 MW ultra-supercritical coal-fired generating unit in China. We completed the construction of the first 1,000 MW generating unit in the world using sea water desulphurization facilities and the 660 MW high-efficiency ultra-supercritical coal-fired generating unit with the highest parameter in China. We completed the construction of the first double reheat ultra-supercritical coal-fired generating unit, and developed the technology for synergistic treatment of fuel gas of coal-fired power plants, which was successfully applied in various environmental protection renovation and newly-constructed projects. We completed the offshore wind power project with the largest generating capacity in Asia and was the first to realize mass production of the wind turbine of 5 MW in China. We also invested and operated the most advanced gas turbine with the largest generation capacity and heat supplying capacity in China. The technical and economic indicators as well as the overall manpower efficiency of the Company have been remaining at the forefront in China's power industry.
As of MarchDecember 31, 2017,2018, we had controlling generating capacity of 101,270105,991 MW, and a total generating capacity of 89,48693,755 MW on an equityequity-ownership basis.
Operations in China
We are engaged in developing, constructing, operating and managing large scale coal-fired and gas turbine power plants, throughout China.new energy power projects and related facilities, including ports, marine transportation and power distribution. Our domestic power plants are located in 2426 provinces, autonomous regions and provincial-level municipalitiesmunicipalities. In 2018, the Company proactively adapted to the changes in the market and autonomous regions.anticipated the dynamics of the reforms in national economy and power market system to promptly realign our operating strategy. Throughout the year, we maintained stable operation of safe and clean production, constantly optimised the power structure, realized increases in both quantity and price in power generation, achieved excellent marketing results, effectively controlled the fuel cost, and steadily carried out capital operation. As a result, we have satisfactorily achieved our annual business objectives and maintained our leading position in the industry.
In 2016, the Company actively responded to the new market environments arising from the development of the social demand for power, implemented and progressed the relevant work, generally maintained a stable and safe production and made efforts on cost control. The operating result of the Company reached a record high while the Company continued to fulfill the duties of providing sufficient, reliable and green power to the society.
In 2016,2018, new generating units with a total installed capacity of 1,227653 MW were put into operation. In 2016,2018, our total domestic power generation from all operating power plants on a consolidated basis amounted to 313.690430.457 billion kWh, representing a decreasean increase of 2.13%9.12% from 2015.2017. The annual average utilization hours of our domestic generating units reached 3,9214,208 hours. Our fuel cost per unit of power sold by domestic power plants decreasedincreased by 1.76%4.85% from the previous year to RMB 170.62236.89 per MWh.
We believe our significant capability in the development and construction of power projects, as exemplified in the completion of our projects under construction ahead of schedule, and our experience gained in the successful acquisitions of power assets in recent years will enable us to take full advantage of the opportunities presented in China's power market.
14
With respect to the acquisition or development of any project, we will consider, among other factors, changes in power market conditions, and adhere to prudent commercial principles in the evaluation of the feasibility of the project. In addition to business development strategies, we will continue to enhance our profitability by further strengthening our cost control, especially in respect of fuel costs and construction costs, so as to hedge against fluctuations in fuel price and increase competitiveness in the power market.
Operations in Singapore
Tuas Power, one of our wholly owned business units, operates in Singapore and is engaged in the business of generation, wholesale and retail of power and other relating utilities. Tuas Power is comprised of Tuas Power Ltd ("TPL"), the investment holding company, and seveneight subsidiaries. Among thosethese subsidiaries, Tuas Power Generation Pte. Ltd. ("TPG") is the electricity generation company that owns 100% of Tuas Power Supply Pte Ltd ("TPS"), which is the retail arm of TPG. Separately, TPU, a wholly owned subsidiary of TPL is engaged in the business of production and supply of utilities to industrial customers at Tembusu, Jurong Island in Singapore, as well as the

16
generation of electricity dispatched to the electricity wholesale market. We have consolidated Tuas Power's results of operations since March 2008. The total assets and revenue of Singapore operations represented approximately 8.98%6.49% and 7.70%7.08%, respectively, of our consolidated total assets and revenue as of and for the year ended December 31, 2016.2018. In 2016,2018, the power generated by Tuas Power in Singapore accounted for 21.5%21.1% of the total power generated in Singapore, slightly lower than 2015.2017.
Operations in Pakistan

We engaged in the business of generation, wholesale and retail of power and other relating utilities through our subsidiaries, Huaneng Shandong Ruyi (Pakistan) Energy (Private) Co., Ltd. (“Ruyi Pakistan Energy”) and Shandong Huatai Electric Power Operation & Maintenance (Private) Co., Ltd. ("Huatai Power") and their subsidiaries. We have consolidated results of operations of Ruyi Pakistan Energy and Huatai Power since December 31, 2018. The total assets of Pakistan represented approximately 3.28% of our consolidated total assets as of December 31, 2018.
Development of power plants
The process of identifying potential sites for power plants, obtaining government approvals, completing construction and commencing commercial operations is usually lengthy. However, because of our significant experience in developing and constructing power plants, we have been able to identify promising power plant projects in China and to obtain all required PRC Government approvals in a timely manner.
Opportunity identification and feasibility study
We initially identify an area in which additional electric power is needed by determining its existing installed capacity and projected demand for electric power. The initial assessment of a proposed power plant involves a preliminary feasibility study. The feasibility study examines the proposed power plant's land use requirements, access to a power grid, fuel supply arrangements, availability of water, local requirements for permits and licenses and the ability of potential customers to afford the proposed power tariff. To determine projected demand, factors such as economic growth, population growth and industrial expansion are used. To gauge the expected supply of electricity, the capacities of existing plants and plants under construction or development are studied.
Approval process
Prior to July 2004, any project proposal and supporting documents for new power plants had to first be submitted to the NDRC for approval and then be submitted to the State Council. In July 2004, the State Council of the PRC reformed the fixed asset investment regulatory system in China. Under the new system, new projects in the electric power industry that do not use government funds will no longer be subject to the examination and approval procedure. Instead, they will only be subject to a confirmation and registration process. Coal-fired projects will be subject to confirmation by the NDRC. Wind power projects with installed capacity of 50 MW or above shall be subject to confirmation and registration with the relevant department of the central government, while wind power projects with an installed capacity lower than 50 MW shall be subject to confirmation and registration with relevant local government departments. Wind power projects confirmed by local government departments at provincial level shall also be filed with the NDRC and China National Energy Administration.
In November 2014, pursuant to the Catalogue of Investment Projects Approved by the Government (2014 Version) issued by the State Council, administrative approval power for certain activities in the energy sector has been delegated to a lower level. The administrative approval power for thermal power stations has been delegated to the provincial level (with coal-fired thermal power station projects being subject to national-level administrative
15
approval based on state-promulgated constructions plans limited by total volume), the administrative approval power for heat power stations has been delegated to the local level (with condensing steam heat power station projects being subject to provincial-level administrative approval based on state-promulgated constructions plans limited by total volume), and the administrative approval power for wind power plants delegated to the local level subject to state-promulgated constructions plans limited by total volume as well as the scope as set out in the annual developmental guides. The Interim Measures for Supervision and Administration of Photovoltaic Power Station Projects issued by China National Energy Administration in 2013 requires that photovoltaic power station projects be regulated by on a filing-based system by the provincial-level energy supervisory departments in accordance with regulations related to investment projects issued by the State Council. The same administrative approval standard was again re-affirmed in December 2016 pursuant to the Catalogue of Investment Projects Approved by the Government (2016 Version) issued by the State Council.
Joint venture power projects are subject to additional governmental approvals. Approval by Ministry of Commerce is also required when foreign investment is involved.

17
From 2014, China National Energy Administration has placed the stringent control on coal-fired projects within the Beijing-Tianjin-Hebei region, the Yangtze River Delta Region and the Pearl River Delta Region. All new coal –firedcoal-fired generating projects, other than those involving co-generation, were prohibited from being approved. Multi coal-fired generating units with a total capacity of more than 300 MWh may be reconstructed into large capacity units based on the principles of an equivalent replacement for coal but the reduction in replacement pollutant emission.
From 2016, to counter the issue of overcapacity in the coal-firecoal-fired power sector, China National Energy Administration strengthened the approval of coal-firecoal-fired projects nationwide, a number of new coal-fired generating projects, other than those involving co-generation, were cancelled,canceled, postponed or terminated. Considering the increasingly limited availability of prime locations and decreasing subsidies, China National Energy Administration also suspended approval of new wind power plants and photovoltaic power station projects in provinces with wind curtailment rate over 20% and solar curtailment rate over 5%. It is expected that the overcapacity countering policy will be continued in the future.
Permits and contracts
In developing a new power plant, we, like other players in the industry, are required to obtain permits before commencement of the project. Such permits include operating licenses and similar approvals related to plant site, land use, construction, and environment. To encourage the cooperation and support of the local governments of the localities of the power plants, it has been and will be our policy to seek investment in such power plants by the relevant local governments.
Power plant construction
We have generally acted as the general contractor for the construction of our power plants. Equipment procurement and installation, site preparation and civil works are subcontracted to domestic and foreign subcontractors through a competitive bidding process. All of our power plants were completed on or ahead of schedule, enabling certain units to enter service and begin generating income earlier than the estimated in-service date.
Plant start-up and operation
We have historically operated and intend to continue to operate our power plants. Our power plants have established management structures based on modernwell-developed management techniques. We select the superintendent for a new power plant from the senior management of our operating plants early in the construction phase of the new plant, invest in the training of operational personnel, adopt management techniques that improve efficiency and structure our plant bonus program to reward efficient and cost-effective operation of the plant in order to ensure the safety, stability and high availability factor of each power plant. Our senior management meets several times a year with the superintendents of the power plants as a group, fostering a team approach to operations, and conducts annual plant performance reviews with the appropriate superintendent, during which opportunities to enhance the power plant's performance and profitability are evaluated.
16
After a coal-fired generating unit is constructed, the contractor tests its installation and systems. Following such tests, the contractor puts the unit through a continuous 168-hour trial run at full load. After successfully passing the continuous 168-hour test and obtaining approval from the local governments, the unit may commence its commercial operation. Trial run of a wind power project consists of two phases: (i) trial run of single wind power generating unit and (ii) trial run of the entire wind power project as a whole. After successfully passing the trial run, the wind power project may commence its commercial operation.
Development of Power Plantspower plants in Singapore
The Singapore electricity industry had traditionally been vertically integrated and owned by the government. Since 1995, steps have been taken to liberalize the power industry, including the incorporation of the Public Utilities Board ("PUB") in 1995, establishment of Singapore Electricity Pool ("SEP") in 1998, formation of Energy Market Authority ("EMA") in 2001, and the evolvement of the SEP into the New Electricity Market of Singapore ("NEMS") in 2003. The EMA is a statutory body responsible for the economic, technical and competition regulation of the gas and electricity industry in Singapore. In carrying out its functions as the regulator of the power sector, EMA is empowered under the Electricity Act to issue and enforce licenses, codes of practices and

18
performance standards. Energy Market Company Pte Ltd. (the "EMC") is the market company licensed to operate the wholesale market, or the NEMS.
In Singapore, a company is required to hold a generation license issued by the EMA if it generates electricity by means of one or more generating units with capacity of 10 MW or above. If connected to the power grid, the generating unit(s) must be registered with the EMC and will have to compete with other power generation companies to secure dispatch in the NEMS.
To ensure adequate electricity supply in Singapore, the EMA targets a minimum reserve margin (the excess of generating capacity over peak electricity demand) of 30% based on a loss of load probability (a measure of the probability that a system demand will exceed capacity during a given period, often expressed as the estimated number of days over a year) of three days per year. The 30% required reserve margin is to cater for scheduled maintenance as well as forced outages of generating units in the system. If the reserve margin falls below the required 30% due to demand growth and/or plant retirements, it would be an indication that new generation investments in generation units are needed to maintain system security.
The EMA intends to keep the increase and decrease in generating capacity commercially driven as far as practicable. As a precaution against the risk of insufficient generating capacity in the system, the EMA has planned to put in place a capacity assurance scheme to incentivize new generation planting in case new generating capacity that is required to maintain system security is not forthcoming from the market. EMA has not provided any update toon the proposed scheme but given the current oversupply of capacity, it is not anticipated that the scheme will be put into place anytime soon.
By most measures of market power, the Singapore market is highly concentrated, as the three largest power generation companies account for approximately 60% of total power capacity. Since December 2002, EMA has imposed a licensed capacity cap (in MW) on these three power generation companies to prevent them from increasing their market dominance/power. Following a review of the vesting contract regime in 2016, EMA imposed a 25% cap on capacity market share to all generation licensees to prevent structural increases in market concentration/power. With regard to the three largest power generation companies, the cap imposed by EMA is the higher of either the 25% capacity market share cap or their respective licensed capacity cap, until the expiry of their respective generation license. This provides an option for the three largest power generation companies to increase their generation capacities beyond their current generation license up to 25% capacity market share cap.
New entrants as well as existing competitors have invested in new generating capacity or repowering of existing plants to take advantage of the LNG Vesting Scheme. This will impact the market negatively as these new capacities compete for market share as well as to avoid the gas take-or-pay penalties arising out of an oversupplied market.
EMA issued a Singapore Electricity Market Outlook (SEMO) 2016,2018, which provides a long termlong-term outlook of the energy market, such as the projected supply and demand conditions to facilitate power generation investment
17
decisions. Based on the data provided by EMA, there will be approximately 300MWannual system demand and system peak demand are projected to grow at a CAGR of new investments in 2017 and 700MW1.4 – 2.0% over the next 10 years (2019 to 2029), while a net reduction of plant retirement in 2019.about 1,300 MW of generation capacity is projected over the next 4 years (2019 to 2022).
We are in the process of developing the Tembusu Multi-Utilities Complex (the "TMUC") in Singapore. The TMUC is expected to consist of a co-generation plant, a desalination plant and a wastewater treatment facility, with a total installed capacity of 165 MW. The complex will be developed in multiple phases in order to meet customers' demand. Phase 1 consists of 1 x 450 t/h coal-biomass co-fired circulated fluidized bed boiler, 2 x 200 t/h diesel/natural gas firedgas-fired boilers and 1 x 101MW steam turbine-generator, and other components of the plant. Phase 2A consists of 1 x 450 t/h coal-biomass co-fired circulated fluidized bed boiler, 1 x 200 t/h diesel/natural gas firedgas-fired boiler and 1 x 32MW steam turbine-generator, and other components of the plant. Phase 1 and Phase IIA commenced commercial operations in March 2013 and June 2014 respectively. The first train of 62.5 m³/h wastewater treatment facility commenced commercial operation in September 2015. TPL owns 100% equity interest in this project.
TPL collaborated with ST Marine Pte. Ltd. (ST Marine), an affiliate of Singapore Temasek Holdings, to participate in the tender for Singapore's Public Utilities Board (PUB)'s fifth desalination plant project under a

19
Develop-Build-Own-Operate (BDOO) scheme on July 6, 2017. The capacity of the desalination plant is 30 MIGD (137,000 cubic meter per day). The desalination plant is located at Tembusu Jurong Island, adjacent to TMUC in order to achieve synergy. TPL and ST Marine incorporated a concession company, TP-STM Water Resources Pte. Ltd. (TP-STM Water Resources), on November 1, 2017 and executed the Water Purchase Agreement (WPA) with PUB on November 6, 2017. TPL owns 60% equity interests in TP-STM Water Resources. The construction of the desalination plant commenced in August 2018. The project commercial operation date (PCOD) is scheduled for June 2020. The term of concession is 25 years from the PCOD.
Pricing policy
Pricing policy in China
Prior to April 2001, the on-grid tariffs for our planned output were designed to enable us to recover all operating and debt servicing costs and to earn a fixed rate of return. Since April 2001, however, the PRC Government has gradually implemented a new on-grid tariff-setting mechanism based on the operating terms of power plants as well as the average costs of comparable power plants.
On July 3, 2003, the State Council approved the tariff reform plan and made it clear that the long-term objective of the reform is to establish a standardized and transparent tariff-setting mechanism.
Pursuant to the NDRC circular issued in June 2004, on-grid tariffs for newly built power generating units commencing operation from June 2004 should be set on the basis of the average cost of comparable units adding tax and reasonable return in the regional grid. It provides challenges and incentives for power generation companies to control costs for building new generating units.
On March 28, 2005, the NDRC issued the Interim Measures on Regulation of On-grid Tariff, the Interim Measures on Regulation of Transmission and Distribution Tariff, and the Interim Measures on Regulation of End-user Tariff, or collectively the "Interim Measures",Measures," to provide guidance for the reform of tariff-setting mechanism in the transition period. Under the Interim Measures, the tariff is classified into on-grid tariff, transmission and distribution tariff and end-user tariff. Transmission and distribution tariff will be instituted by the government. End-userThe end-user tariff will be based on on-grid tariff and transmission and distribution tariff. The government is responsible for regulating and supervising power tariffs based on the principles of promoting efficiency, encouraging investment and improving affordability.
In December 2004, the NDRC proposed and the State Council approved the establishment of a linkage mechanism between coal and power prices, pursuant to which, the NDRC may adjust power tariffs if the change of the average coal price reaches 5% within a period of six months compared with the preceding same period. The change in a period, if less than 5%, will be carried forward to the future periods until the accumulated amounts reach 5%. With a goal to encourage power generation companies to reduce cost and improve efficiency, only around 70% of coal price increases will be allowed to pass to end-users through an increase of power tariffs, and power generation companies will bear the remaining 30%. In May 2005, the NDRC activated the coal-electricity price linkage mechanism for the first time to increase on-grid tariffs and end-user tariffs in the northeastern region, central region, eastern region, northwestern region and southern region. We accordingly increased the on-grid tariffs of our power plants in the northeastern region, central region, eastern region and northwestern region on May 1, 2005 and in the southern region on July 15, 2005. In June 2006, the coal-electricity price linkage mechanism was reactivated by the NDRC to increase on-grid tariffs and end-user tariffs in the northeastern region, central region, eastern region, northwestern region and southern region. We accordingly increased the on-grid tariffs of most of our power plants in the same regions on June 30, 2006.
18
In May 2007, NDRC and the State Environment Protection Administration jointly promulgated Interim Administrative Measures on Electricity Price of Coal-fired Generating Units installed with Desulphurization Facilities and the Operations of Such Facilities, which provided that a premium for desulphurization may be charged on the price of the electricity generated by generating units installed with desulphurization facilities on and from the date on which such desulphurization facilities are tested and accepted by a relevant environment protection regulator. Such pricing policy is also applicable to the old generating units which are installed with desulphurization facilities. The new measures are more stringent on the regulation of the coal-fired power plants with desulphurization facilities, setting forth the categories under which the price including a desulphurization premium will be offset or otherwise

20
penalized based on the ratio of utilization of the relevant desulphurization facilities on an annual basis. As of December 31, 2013, all of our existing coal-fired generating units have installed and operated the desulphurization facilities and enjoyed the desulphurization premium.
In June 2008, NDRC issued Notice of Raising the Power Tariff, pursuant to which, the power tariff in provincial grids nationwide was increased by an average of RMB0.025 per kWh. In August 2008, NDRC issued Notice of Raising the On-grid Tariffs of the Thermal Power Plants, pursuant to which, the on-grid tariff of thermal power plants, including plants fueled by coal, oil, gas and co-generation, was increased by an average of RMB0.02 per kWh.
On February 25, 2009, NDRC, SERC and China National Energy Administration jointly promulgated the Notice regarding Cleaning up the Concessional Tariff Scheme, pursuant to which, (i) the concessional tariff scheme at the local level is banned, and (ii) certain measures, such as direct purchase by large end-users and adopting peak and off-peak power pricing policy, will be carried out to reduce enterprises' power cost. In addition, the notice emphasizes the supervision and inspection over the setting of power tariffs. For wind power plants located in a specific wind source area, a unified wind power tariff shall be applied. On October 11, 2009, in order to promote a fair market condition and the optimization of electric power resources, NDRC, SERC and China National Energy Administration jointly promulgated the Circular on Regulating the Administration of Electric Power Transaction Tariff to regulate the tariff-setting mechanism for the on-grid tariff, transmission and distribution tariff and end-user tariff and clean up the local preferential power tariffs provided to high energy consumption companies. Pursuant to a notice issued by NDRC, with effect from November 20, 2009, certain adjustments on the on-gridson-grid tariffs have been made in various regions of China in order to resolve the inconsistencies in tariffs, rationalize the tariff structure and promote the development of renewable energy.
In 2010, the PRC Government started to implement the direct power purchase policy. As of December 31, 2013, some of the provinces where we operate power plants are approved by the NDRC to implement the direct power purchase by large power end-users. In addition, during 2010 SERC issued several circulars and notices to regulate the trans-provincial and interregional transaction of power and/or power generation right, in which the power purchase price shall be freely determined by negotiation through the market pricing mechanism. In December 2012, SERC issued another circular to further regulate the trans-provincial and interregional transaction of power and/or power generation right.
In May 2011, NDRC issued a notice, increasing the on-grid tariffs of thermal power plants to partially compensate the increased costs incurred by thermal power plants resulting from increases in coal prices. Different adjustments on tariffs were made in different provinces. In November 2011, PRC Government made further nationwide adjustments on power tariffs, including an average of RMB0.026 per kWh increase in on-grid tariff for thermal power plants. In December 2012, NDRC issued a notice, which provided that, from January 1, 2013, NDRC would provide aan RMB0.008 per kWh denitrification premium for all coal-fired generating units equipped with denitrification facilities that are inspected and accepted by authorized national or provincial authority.
In March 2012, the PRC Government issued a notice, which mandated the confirmation method for the power generation projects, subsidy standards and fund appropriation standards relating to the application for a subsidy for renewable energy power price of power generation projects. In December 2012, the PRC Government issued the Notice on the Guidelines of Enhancing the Reform of Marketization of Coal Used for Power Generation to further reform the coal pricing mechanism. Effective January 1, 2013, all key coal purchase contracts between power generation companies and coal suppliers were terminated and contracts are directly negotiated between power generation companies and coal suppliers without the interference of local governments. According to the notice, the NDRC will no longer issue inter-provincial guidance on the railway transportation capacity plan. In addition, the dual-track coal pricing system, which included the government regulated mandatory annual contract pricing and spot
19
market prices for the remaining coal production output of each coal supplier, was abolished due to the narrowing gap between the government regulated coal contract price and the spot market price. Pursuant to the notice, future coal contract prices will be determined by the market and freely negotiated between power generation companies and coal suppliers. Furthermore, the coal-electricity price linkage mechanism will continue to be implemented and constantly improved. Once the coal price fluctuates for more than 5% on an annual basis, the on-grid tariff would be adjusted accordingly. The notice also mandates that power generation companies absorb 10% of the coal price fluctuations as compared to 30% prior to 2013. Given the narrow gap between the key contract coal price and the spot market price, the overall on-grid tariff was not adjusted.

21
In September 2013, NDRC issued the Notice on the Adjustment of Power Tariff for Power Generation Companies and Related Matters, pursuant to which the on-grid tariffs for coal-fired generating units were lowered, by a national average of RMB0.013 per kWh, and the on-grid tariff for gas turbine power plants werewas slightly increased. The Notice also increased the power tariff for power-generating companies that are equipped with denitrification facilities and dust-removal facilities.
In March 2014, the NDRC and the Ministry of Environmental Protection jointly issued the Measures to Monitor the Operation of Environmental Protection Tariffs and Facilities Regarding Coal-fired Generating Units, under which the standard on-grid electricity tariff incorporating environmental protection element will no longer be applicable to coal-fired generating units unless the coal-fired power generating enterprise has completed renovation for environmental protection acceptable after testing. In August 2014, the NDRC issueissued the Notice to Further Resolve Conflicts Regarding Environmental Protection Tariff, under which the standard on-grid tariff for coal-fired power generating units is lowered with the view to resolve the environmental protection tariffs conflicts such as denitrification and dedusting of coal-fired power generation enterprises, and setting the tariff subsidy for denitrification and dedusting at RMB0.01/kWh and RMB0.002/kWh, respectively. In December 2014, the NDRC issued the Notice Regarding Adjusting Standard On-grid Tariff for Onshore Wind Powers, under which the standard on-grid tariff for each of Class I, Class II and Class III wind powers is lowered by RMB0.02, and the tariff for Class IV wind power remainremains unchanged at RMB0.61/kWh. In December 2014, the NDRC issued the Notice Regarding Certain issues of On-grid Tariff of Natural Gas Powers, defining the principles to formulate and modify the tariff of electricity generated by natural gas, aiming to regulate on-grid tariff administration and used facilitate healthy and orderly growth of natural gas power generating sector in China.
In April 2015, the NDRC issued the Notice on Reducing On-grid Tariff for Coal-fired Power and Commercial and Industrial Power Tariff in order to release the pressureguide on tariffs for natural gas and for companies that utilize denitration or dedusting techniques or with extremely low emissions, to lower commercial and industrial power tariff, and to moderately lower on-grid tariff for coal-fired power, the power tariff in provincial grids nationwide was decreased by an average of RMB0.02 per kWh.
In December 2015, the NDRC issued the Notice on Issues of Perfecting the Mechanism of Coal-electricity Price Linkage, confirming the annual cycle of the mechanism, the NDRC's leading role in implementing the mechanism, and provinces and cities' executor role in implementing the mechanism. The coal-electricity prices with which the mechanism of coal-electricity price linkage is in line are indexed to the national thermal coal price index. The benchmark coal price is the provincial average price in China's thermal coal price index of 2014. And the benchmark tariff is in principle the on-grid tariff in line with the benchmark coal price. The tariff adjustment may be triggered after the annual review based on the calculations according to the formula given by Policy of the Mechanism of Coal-electricity Price Linkage. Also inIn December 2015, the NDRC issued the Notice on Reducing On-grid Tariff for Coal-fired Power and General Commercial and Industrial Power Tariff, which ordered a decrease of national on-grid tariffs for coal power and general commercial and industrial power tariff by an average of RMB0.03 per kWh, based on the relevant regulations prescribed in the mechanism of coal-electricity price linkage. In the same month of 2015, the NDRC also issued the Notice on Improving On-grid Tariff Policy for Wind Power and Photovoltaic Power, which established a policy that the benchmark on-grid tariffs for wind power and photovoltaic power decrease in line with the development of these two types of power plants. To further indicate the investment expectation, the Notice confirmed the benchmark on-grid tariffs for wind power of 2016 and 2018. The 2016 benchmark on-grid tariff for photovoltaic power has been confirmed, yet that of 2017 and onward will be confirmed at a later stage.
20
On January 1, 2016, after the annual review based on the calculations prescribed in the mechanism of coal-electricity price linkage, the NDRC adjusted on-grid tariff for coal-fired power and commercial and industrial power tariff. National on-grid tariffs for coal power decreased by an average of RMB0.03 per kWh, based on the relevant regulations, RMB0.01 per kWh of which shall be contributed to a specialized corporate restructuring fund with the purpose of supporting placement of personnel laid off during the supply-side reform. The NDRC also increased on-grid tariff for renewable power by RMB0.004 per kWh in order to replenish the renewable energy fund and to support emission reduction efforts of coal-fired power generation enterprises and to resolve conflicts regarding environmental protection tariffs.
In December 2016, in order to implement General Office of the State Council’sCouncil's Energy Development Strategic Action Plan (2014-2020) about achieving equal on-grid tariff for wind and solar power with coal power to encourage the orderly development of wind and solar power by properly guiding investments in these areas, the NDRC issued the Announcement on the Adjustment of Standard On-Grid Tariff for Solar and Onshore Wind Power (NDRC Price [2016]No. 2729).Power. From January 1, 2017, standard on-grid tariffs for Class I, Class II and Class III solar powers waswere adjusted to RMB0.65 per kWh, RMB0.75 per kWh and RMB0.85 per kWh, respectively, which is RMB0.15 per kWh, RMB0.13 per kWh and RMB0.13 per kWh lower than the corresponding tariff in 2016. Such standard on-grid tariff will be adjusted annually. 2018 standard on-grid tariff for Class I, Class II and Class III onshore wind power

22
decreased by RMB0.04 per kWh, RMB0.02 per kWh, RMB0.01 per kWh, respectively. Yunnan Province has been recategorized as Class II from Class IV, which meant the standard on-grid tariff for wind power generated in Yunnan province will decrease by an additional RMB0.12 per kWh.
In June 2017, NDRC issued Circular on Canceling or Reducing Governmental Funds and Additional Charges and Reasonably Adjusting On-Grid Tariff Structure, which cancels the special fund for industrial restructuring charged to the power generating enterprises and reduces major water conservancy project construction fund and large and medium-sized reservoir resettlement support fund by 25% to relieve power generation enterprises from its difficulties in daily operations.
In December 2017, NDRC issued Circular on the Pricing Policy of Photovoltaic Projects in 2018, From January 1, 2018, standard on-grid tariffs for Class I, Class II and Class III solar powers were adjusted to RMB0.55 per kWh, RMB0.65 per kWh and RMB0.75 per kWh, respectively (tax included). All distributed photovoltaic projects commencing operation after January 1, 2018, adopting "Self Generate, Self Consume, with Spare Power Put On-grid" model, shall apply a subsidy of RMB0.37 per kWh. All distributed photovoltaic projects adopting "All Power Put On-grid" model shall apply the price set by the region they locate at.
In May 2018, the NDRC, NEA and MOF issued Circular on the Issues related to Photovoltaic Projects in 2018, reducing the standard on-grid tariffs by RMB0.05 for each of Class I, Class II and Class III solar powers. All distributed photovoltaic projects commencing operation after the issuance of the circular, adopting "Self Generate, Self Consume, with Spare Power Put On-grid" model, shall apply a subsidy of RMB0.32 per kWh. All distributed photovoltaic projects adopting "All Power Put On-grid" model shall apply the price set by the region they locate at. In June 2018, the NDRC, NEA and MOF issued the Notice on Releasing the Catalogue of Additional Subsidies for Renewable Energy Tariff (the Seventh Group), which provides that on-grid renewable energy projects incorporated in the catalogue shall not receive the subsidy from the fund of additional subsidies for renewable energy tariff.
Pricing Policy in Singapore
Pricing Policy of Electricity in Singapore
All licensed power plants in Singapore sell their plant output into the NEMS under a half-hourly competitive bidding process, during which a clearing price is determined based on the projected system demand. All successful bids/power plants that are cleared in each half hour will be dispatched automatically by control signals from the Power System Operator, a division of the EMA, and in turn will receive the cleared price as determined earlier. The cleared price paid to the power plants is the nodal price at their point of injection, and the Market Clearing Engine, the computer software that creates dispatch schedules and determines market clearing prices, automatically produces a different price at each node on the network. A Demand Response scheme is being introduced where demand could be curtailed in response to high prices in return for a share of the total savings arising out of lower prices as a result of demand being reduced.
As there is no certainty in the price or the dispatch levels for any power plants, operators of power plants may enter into short- or long-term financial arrangements with other counterparties or their own subsidiary company involved in the electricity retail market (to end consumers of electricity) to secure stability in their revenue stream and manage the commercial risks associated with operations in a competitive market.
In addition, the major power generation companies, including Tuas Power, are obliged to hold vesting contracts. Vesting contracts are a form of the bilateral contract imposed/vested on the generation companies who had been licensed by the EMA before the establishment of NEMS. Market Support Services Licensee is the counterparty to all of the vesting contracts, and the vesting contracts are settled between the parties through the EMC's settlement system. The quantity of vesting contract allocated to the power generation company depends on the proportion of such power generation company's capacity to the total licensed or planned generation capacity at the commencement of the vesting contract regime. Vesting contract price is set by the EMA at the long-run marginal cost and is adjusted by the EMA on a periodic basis for changes in the long-run marginal cost and on a quarterly basis for inflation and changes in fuel prices and electricity demand. Such mechanism helps protect the profit margins of the power generation companies in the Singapore market to a large degree.market. The contract quantity and
21
price are currently recalculated every three months. There has been a rollback on the vesting contract level from 40% in 2015 to an immediate level of 25%. Following the review of vesting contract regime by EMA in 2016, it is determined that the vesting contract level will maintain at 25% until the end of first half of 2018 and reduce to LNG vesting

23
level by the second half of 2019. The vesting contract regime will be phased out by 2023 when the LNG vesting contracts expires. This translates intoexpire. There will be increased exposure to a morepool prices which are volatile pool price.in nature. The authority has introduced a demand response scheme where loads can choose to participate in peak load shaving and share in part of the consumer surplus and an Electricity Futures Market which attracts independent retailers to enter the Singapore market. We continue to monitor closely and evaluate the impact of such markets on our business.
The gross pool design adopted in NEMS means all quantity sold by retailers to contestable consumers (currently defined as customers with average monthly usage more than of 42,000kWh) has to be in turn purchased from the pool. The retailers pay for their electricity purchases at the Uniform Singapore Energy Price, which is a weighted average of nodal prices and is determined on a half-hourly basis in the NEMS.
Pricing Policy of Utilities in Singapore
Utilities supply to industrial customers is based on long-term contracts. The pricing of utilities has both fixed and variable components.
Power sales
Each of our power plants has entered into a written agreement with the local grid companies for the sales of its planned power output. Generally, the agreement has a fixed term of one year and provides that the annual utilization hours of the power plant will be determined with reference to the average annual utilization hours of the similar generating units connected to the same grid.
In 2003, SERC and the State Administration of Commerce and Industry jointly promulgated a model contract form (the "Model Contract Form") for use by power grid companies and power generation companies in connection with electricity sale and purchase transactions. The Model Contract Form contains provisions on the parties' rights and obligations, amount of electricity subject to purchase, payment method and liabilities for breach of contract, etc. We believe that the publication of the Model Contract Form has facilitated the negotiation and execution of electricity purchase contracts between power grid companies and power generation companies in a fair, transparent and efficient manner. In 2015,2016, a majority of the agreements entered into between our power plants and the local grid companies were based on the Model Contract Form.
From 2008, with the purpose of improving energy usage efficiency, the government implemented an optimized-dispatch electricity policy in some provinces in China, as a result of which, the utilization hours of low energy consumption and low pollution generating units have been improved. We believe that In 2018, our large generating units with high efficiency and low emission are competitive in the market.
The PRC Government started in 1999 to experiment with a program to effect power sales through competitive bidding in some provinces. Furthermore, the PRC Government started in 2009 to experiment with a program for direct power purchase byplants, large power end-users and has promulgated relevantelectric power companies/grid companies started to sign tripartite contracts.
From 2015, several rules governinghave been issued to implement the priceplan for power market reform, including Regulation on Market Access and methodExit of directElectric Power Company, Several Opinions on Further Deepening the Reform of the Electric Power System, Regulations on Orderly Opening Up Electricity Distribution Business, Basic Rules for Mid- to Long- Term Electricity Trade (Interim), Circulate on Orderly Opening Up Power Generation and Consumption Plans, Response regarding Approving Regulation on Pilot Inter-Region Incremental Renewable Energy Power Trade (Interim), Circular on Establishment of Pilot Electricity Power Stock Exchange, Notice on Actively Promoting Market-oriented Power Exchange and Further Improving the Trading Mechanism, and Implementing Rules on Allocating the Distribution Region of the Incremental Distribution Business, etc. to further the reform of electricity market and the establishment of the electricity exchange.
Starting from 2016, two nationwide and 33 provincial level electricity exchanges have been established, and we have invested in the electricity exchanges established in Chongqing, Shanxi and Hubei, holding 3%, 5% and 5% equity interests, respectively. In 2018, the NDRC and NEA issued Circular on Promoting the Standardization of the Power Exchanges, which provides the power purchase transactions as well asexchanges shall pursue the variety of shareholders and demands a non-grid capital involvement of more than 20%.  More than 20 market administration committees have been established, and we have participated in the market entranceadministration committees established in areas such as Beijing, Guangzhou, Jiangsu, Shanxi, Liaoning, Shanghai, Henan, Hubei, Chongqing, Jilin and exit mechanism. Shandong.
At the end of 2018, all municipalities, autonomous regions and provinces, except for Tibet, have finished their approval of electricity distribution price. We have established 20 provincial level energy sales companies and 13 municipal level energy sales companies, taking a meaningful market share.
In accordance with the above policies, we are conducting research on the program2018, all municipalities, autonomous regions and provinces, except for direct power purchases by large power end-users. In July 2013, China National Energy Administration issued the Notice on Direct Purchases between Power End-users and Power Generation Companies, which officially implemented the direct purchases programs by large end-users. Among the provinces where we operate our power plants, seven of them, namely Shanxi, Jiangsu, Henan, Hunan, Guangdong, Fujian and Gansu, started theTibet, have developed direct purchase program in 2013, and four of them, namely Jiangxi, Yunnan, Hubei and Liaoning, are actively promoting the direct purchase pilot programs.
In 2014, the programs were also implemented in Zhejiang and Anhui. In addition to these regions, the direct purchase programs by large end-users were also implemented in Liaoning, Jiangxi, Hubei and Chongqing in 2015 and in the whole nation except Shanghai, Hainan and Tibet in 2016. The national volume of electricity sold in 20162018 via the direct purchase programs was approximately 8001,400 billion kWh, which represented a huge increase from the 430 billion kWh sold in 2015.2017. Most of the sale was negotiated

24
between power producers and large end users, with a minority completed through the competitive bidding process.process or listed transactions. We participated in direct purchase programs in all regions with pilot direct purchase programs.where we have control over power plants, other than Hainan, and obtained market shares similar to our capacity shares.
22
In general, establishing liberalized power markets represents the general trend in China's power market reform, which is conducive to creating a competitioncompetitive environment that is fair, transparent and equitable.
The following table sets forth the average power tariff (RMB/MWh) of electric power sold by our power plants in China, for each of the five years ended December 31 through 2016 and the approved power tariff for 2017.
  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Heilongjiang Province
                  
Xinhua Power Plant*  —   —   —   —   —   377.21 
Hegang Power Plant*  —   —   —   —   —   378.70 
Daqing Co-generation  —   —   —   —   —   372.30 
Yichun Co-generation*  —   —   —   —   —   382.30 
Sanjiangkou Wind Power*  —   —   —   —   —   630.00 
Linjiang Jiangsheng Wind Power*  —   —   —   —   —   630.00 
Daqing Heping Aobao Wind Power*  —   —   —   —   —   630.00 
Jilin Province
                        
Jiutai Power Plant*  —   —   —   —   —   371.70 
Changchun Co-generation*  —   —   —   —   —   371.70 
Nongan Biomass*  —   —   —   —   —   750.00 
Linjiang Jubao Hydropower*  —   —   —   —   —   375.70 
Zhenlai Wind Power*  —   —   —   —   —   595.00 
Siping Wind Power*  —   —   —   —   —   610.00 
Tongyu Tuanjie Wind Power*  —   —   —   —   —   580.00 
Liaoning Province
                        
Dalian Power Plant  409.18   407.89   394.50   375.55   346.76   368.50 
Dandong Power Plant  405.73   401.09   393.06   371.45   352.52   368.50 
Yingkou Power Plant  409.35   406.85   399.33   378.32   344.71   368.50 
Yingkou Co-generation  397.59   396.96   399.21   365.04   331.39   368.50 
Wafangdian Wind Power  610.82   632.85   609.68   598.12   603.72   620.00 
Changtu Wind Power  610.00   605.30   602.82   590.93   626.09   620.00 
Suzihe Hydropower  364.25   330.00   330.00   329.96   332.67   330.00 
Dandong Photovoltaic  —   —   —   —   950.00   950.00 
Yingkou Co-generation Photovoltaic  —   —   —   —   950.00   950.00 
Inner Mongolia Autonomous Region
                        
Huade Wind Power  520.00   520.00   520.00   520.00   471.22   520.00 
Hebei Province
                        
Shang’an Power Plant  434.63   431.15   429.39   401.79   358.48   367.57 
23
  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Kangbao Wind Power  536.72   534.47   538.84   538.14   554.60   540.00 
Kangbao Photovoltaic －  －  －  －  784.95   982.50 
Gansu Province
                        
Pingliang Power Plant  336.12   332.16   322.72   259.51   207.63   297.80 
Jiuquan Wind Power  520.60   520.60   520.60   473.12   367.54   520.60 
Jiuquan II Wind Power  —   —   540.00   497.75   402.36   540 
Yumen Wind Power  —   —   520.60   472.01   390.06   520.60 
Yigang Wind Power  —   —   —   —   447.65   580.00 
Beijing Municipality
                        
Beijing Co-generation  494.00   529.47   514.72   480.70   454.99   462.60 
Beijing Co-generation CCGT  —   468.79   882.33   959.91   687.33   650.00 
Tianjin Municipality
                        
Yangliuqing Co-generation  438.03   483.73   434.28   416.54   370.82   383.80 
Lingang Co-generation CCGT  —   —   —   817.57   726.44   700 
Shanxi Province
                        
Yushe Power Plant  396.56   393.37   391.22   334.87   253.01   331.50 
Zuoquan Power Plant  383.25   389.83   382.01   333.25   252.96   325.5 
Dongshan CCGT  —   —   —   703.80   682.40   670.50 
Shandong Province
                        
Dezhou Power Plant  468.90   464.89   463.36   445.44   389.78   403.51 
Jining Power Plant  459.63   455.46   446.73   429.20   372.57   384.52 
Xindian Power Plant  453.75   453.35   448.55   432.30   381.58   389.60 
Weihai Power Plant  461.89   474.38   461.18   440.45   382.53   398.51 
Rizhao Power Plant Phase II  446.90   446.38   441.59   422.33   372.08   382.90 
Zhanhua Co-generation  450.55   446.56   434.71   424.66   389.33   372.90 
Baiyanghe Power Plant*
  —   —   —   —   —   394.64 
Rizhao Power Plant Phase I*
  —   —   —   —   —   448.50 
Jiaxiang Power Plant*
  —   —   —   —   —   377.90 
Jining Co-generation*
  —   —   —   —   —   385.50 
QufuCo-generation*
  —   —   —   —   —   372.90 
Huangtai Power Plant*
  —   —   —   —   —   382.90 
Yantai Power Plant*
  —   —   —   —   —   405.40 
Linyi Power Plant*
  —   —   —   —   —   384.23 
Jining Yunhe Power Plant*
  —   —   —   —   —   394.50 

24
  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Liaocheng Co-generation*
  —   —   —   —   —   385.20 
Taian Power Plant*
  —   —   —   —   —   372.90 
Laiwu Power Plant*
  —   —   —   —   —   380.40 
Muping Wind Power*
  —   —   —   —   —   640.00 
Penglai Wind Power*
  —   —   —   —   —   635.00 
Rushan Wind Power*
  —   —   —   —   —   640.00 
Changdao Wind Power*
  —   —   —   —   —   630.00 
Rongcheng Wind Power*
  —   —   —   —   —   630.00 
Dongying Wind Power*
  —   —   —   —   —   640.00 
Boshan Photovoltaic*
  —   —   —   —   —   1,000.00 
Sishui Photovoltaic*
  —   —   —   —   —   1,200.00 
Gaozhuang Photovoltaic*
  —   —   —   —   —   1,000.00 
Jining Co-generation Photovoltaic*
  —   —   —   —   —   611.45 
Henan Province
                        
Qinbei Power Plant  441.43   437.01   435.42   401.65   354.30   361.01 
Zhongyuan CCGT*
  —   —   —   —   —   600.00 
Luoyang Co-generation Power  —   —   —   384.33   365.91   365.10 
Luoyang Yangguang Power  —   —   —   365.10   316.83   355.10 
Mianchi Co-generation  —   —   —   —   328.10   328.10 
Zhumadian Wind Power  —   —   —   —   610.00   610.00 
Jiangsu Province
                        
Nantong Power Plant  441.25   435.69   436.00   430.98   407.55   385.50 
Nanjing Power Plant  442.17   436.35   463.50   453.08   400.81   383.00 
Taicang Power Plant  430.43   432.81   419.19   387.68   349.31   381.32 
Huaiyin Power Plant  458.25   449.87   438.98   450.81   433.30   380.50 
Jinling Power Plant                        
Coal-fired  427.34   428.38   408.24   385.24   348.86   388.00 
CCGT  581.35   585.53   606.21   712.13   708.41   575.00 
CCGT Co-generation  —   635.42   690.00   760.99   617.12   584.00 
Suzhou Co-generation  —   —   508.66   489.38   453.42   457.00 
Nanjing Thermal Power  —   —   —   —   445.21   462.00 
Qidong Wind Power  542.65   541.34   555.92   556.76   553.91   549.67 
Rudong Wind Power  —   610.00   610.00   610.00   606.24   610.00 

25
  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Tongshan Wind Power  —   —   —   —   610.00   610.00 
Luhe Wind Power  —   —   —   —   —   610.00 
Rudong Offshore Wind Power  —   —   —   —   —   850.00 
Shanghai Municipality
                        
Shidongkou I  457.18   453.27   438.21   435.48   395.18   394.60 
Shidongkou II  442.13   442.00   437.54   410.35   380.60   395.80 
Shidongkou Power  463.85   462.02   449.92   427.42   382.31   404.80 
Shanghai CCGT(2)
  674.00   820.92   866.20   937.13   899.62   705.60 
Chongqing Municipality
                        
Luohuang Power Plant  448.95   448.57   440.90   427.84   376.92   379.60 
Liangjiang CCGT  —   —   —   872.20   649.74   491.30 
Zhejiang Province
                        
Yuhuan Power Plant  491.37   484.79   468.71   452.99   403.82   417.30 
Changxing Power Plant  —   —   431.03   487.93   420.54   442.30 
Tongxiang CCGT(2)
  —   —   1,298.37   1,278.17   887.70   580.00 
Changxing Photovoltaic  —   —   —   1,125.67   1,208.23   1,100.00 
Hongqiao Photovoltaic  —   —   —   —   980.00   980.00 
Hunan Province
                        
Yueyang Power Plant  506.87   505.13   495.31   480.55   449.87   451.85 
Subaoding Wind Power  —   —   494.00   611.72   610.00   610.00 
Guidong Wind Power  —   —   —   610.00   610.00   610.00 
Xiangqi Hydropower  390.00   390.00   410.00   410.00   404.19   380.00 
Hubei Province
                        
Wuhan Power Plant  —   —   461.99   435.47   376.53   402.62 
Jingmen Thermal Power  —   —   432.20   444.09   378.97   398.10 
Yingcheng Thermal Power  —   —   —   477.26   392.73   398.10 
Jieshan Wind Power  —   —   —   610.00   610.00   690.00 
Enshi Maweigou Hydropower  360.00   356.96   366.59   379.26   380.43   370.00 
Dalongtan Hydropower  —   —   366.89   374.80   376.38   370.00 
Jiangxi Province
                        
Jinggangshan Power Plant  483.90   482.95   468.92   443.73   399.06   404.61 
Ruijin Power  —   —   466.57   441.24   399.27   404.30 
Anyuan Power  ���   —   —   424.63   400.98   409.30 
Jianggongling Wind Power  —   —   —   —   610.00   610.00 
26
  Year Ended December 31, 
  2012  2013  2014  2015  2016  2017 
  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Average Tariff  Approved Tariff 
Anhui Province
                  
Chaohu Power Plant  —   —   412.93   409.79   351.24   374.30 
Huaining Wind Power  —   —   —   —   610.00   610.00 
Hualiangting Hydropower  —   —   346.85   392.89   385.60   369.30 
Fujian Province
                        
Fuzhou Power Plant  445.64   442.81   441.83   392.29   348.95   383.99 
Guangdong Province
                        
Shantou Power Plant  542.97   541.39   529.99   498.01   464.69   472.76 
Haimen  529.06   514.30   503.18   483.38   440.21   450.50 
Haimen Power  —   —   479.55   485.46   444.53   450.50 
Shantou Photovoltaic  —   —   —   —   980.00   980.00 
Yunnan Province
                        
Diandong Energy  359.58   371.30   401.59   435.58   513.58   335.80 
Yuwang Energy  361.70   377.41   395.96   545.42   1,394.49   335.80 
Fuyuan Wind Power  —   —   610.00   600.61   494.71   610.00 
Guizhou Province
                        
Panxian Wind Power  —   —   —   —   610.00   610.00 
Hainan Province
                        
Haikou Power Plant  —   —   474.14   457.71   420.45   419.80 
Dongfang Power Plant  —   —   482.69   460.53   420.90   419.80 
Nanshan CCGT  —   —   439.84   629.32   672.26   665.80 
Wenchang Wind Power  —   —   619.72   571.95   609.78   610.00 
Gezhen Hydropower  —   —   392.63   399.78   400.07   400.00 
Dongfang Photovoltaic  —   —   —   —   1,010.00   1,000.00 
Notes:
(1)The power plants marked * are newly acquired entities of the Company in January 2017.
(2)The tariff of Shanghai Combined Cycle and Tongxiang Combined Cycle consist of on-grid settlement price and capacity subsidy income.
Power sales in Singapore
According to the latest available update from EMC, the total registered capacity in commercial operation for 20162018 in Singapore was 13,36613,554 MW, of which 10,37310,512 MW belonged to CCGT/Cogen/Trigen facilities. In 2016,2018, the peak demand for electricity was 6,8467,071 MW against 2015's 6,696MW.2017's 6,967  MW. The power market in Singapore is competitive, and power generation companies compete to sell their power output into NEMS through a bidding process with hedging via vesting contracts and retail sales. AtFor the end ofyear ended December 31, 2016,2018, power sold through vesting contracts represented

25
approximately 25%22.5% of total system demand. The existing Vesting Contract Scheme will be maintained at 25% of system demand until the end of the firstdrop to LNG vesting level in second half of 2018.2019. The decrease in allocated vesting contract volumes will have to be made up through increased retail sales or otherwise, be translated into increased exposure to morepool prices which are volatile pool prices.in nature.
The volatility in the sales price of the revenue associated with the sale of electricity in the NEMS is effectively managed via vesting contracts and direct retail sales which is carried out through a Tuas Power's subsidiary. The effective tariffs Tuas Power received for its electricity output isare thus largely dependent on the vesting contract prices and volumes as well as prices secured under retail sales. The MinisterEMA has also indicatedlaunched the year of 2018 for the start ofOpen Electricity Market (previously known as Full Retail Contestability.Contestability) in April 2018 progressively based on geographical zones and the nationwide launch of the Open Electricity Market is expected to complete by May 2019.
Utility sales in Singapore
In 2016,2018, TMUC sold 2,151,1432,385,087  MT of steam to customers, representing an increasea decrease of 8.2%7.5% as compared to 1,988,9272,579,205 MT in 2015.
27
2017.
Fuel supply arrangements
In 2016, theThe majority of our power plants werein capacity are thermal plants, which are fueled by coal, gas and oil.
Coal
Our coal supply for our coal-fired power plants is mainly obtained from numerous coal producers in Shanxi Province, Inner Mongolia Autonomous Region and Gansu Province. We also obtain coal from overseas suppliers.
In 2014, the average coal purchase price decreased significantly while the quality of the2016, we purchased coals saw marked improvement.  We purchased 120.7132 million tons of coal and consumed a total of 134.9 million tons of coal. Of our total coal purchases, 52% was purchased under annual contracting arrangements, and the remainder was purchased in the open market.  The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB494.86 per ton in 2014. Our average unit fuel cost in 2014 decreased by 7.96% from that in 2013.
In 2015, the average coal purchasing price decreased significantly from the previous year. We purchased 130.56 million tons of coal and consumed 132.12 million tons of coal. Of our total coal purchases, 48% was purchased under annual contracting arrangements and the remainder was purchased in the open market. The coal
28
purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB408.71 per ton in 2015. Our average unit fuel cost in 2015 decreased by 13.68% from that in 2014.
In 2016, we purchased 131.60 million tons of coal and consumed 132.18132 million tons of coal. Of our total coal purchases, 39% was purchased under annual contracting arrangements and the remainder was purchased inon the open market. The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB423.16 per ton in 2016, representing an increase of 3.54% compared to 2015. Our average unit fuel cost in 2016 decreased by 1.76% from that in 2015.
In 2017, we purchased 168 million tons of coal and consumed 172 million tons of coal. Of our total coal purchases, 64% was purchased under annual contracting arrangements and the remainder was purchased on the open market. The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB547.72 per ton in 2017, representing an increase of 29.4% compared to 2016. Our average unit fuel cost in 2017 increased by 32.41% from that in 2016.
In 2018, we purchased 196 million tons of coal and consumed 187 million tons of coal. Of our total coal purchases, 55% was purchased under annual contracting arrangements and the remainder was purchased on the open market. The coal purchase price for our Company, including transportation costs and miscellaneous expenses, averaged approximately RMB551.35 per ton in 2018, representing an increase of 0.66% compared to 2017. Our average unit fuel cost in 2018 increased by 4.85% from that in 2017.
Singapore's Tuas Power used coal as primary fuel for its TMUC's cogeneration plants. Coal is procured from coal producers in Indonesia via two long-term coal supply contracts with 10 year and 15 year15-year terms respectively.respectively, and short-term contracts. The prices are indexed to the Global Coal Newcastle Index and HBA (Coal Reference Price which is regulated by Indonesia Government) Index. In 2016,2018, Tuas Power purchased an incremental amount of coal in the open market.
Gas
Currently,Currently, the Company has ten11 Combined Cycle Gas Turbine Power Plants ("CCGT") in China, including:

●
Huaneng Shanghai Combined Cycle Gas Turbine Power Plant ("Shanghai CCGT") with gas supply transported through the pipeline of "West-East Gas Transport Project";

●Huaneng Jiangsu Jinling Combined Cycle Gas Turbine Power Plant ("Jinling CCGT") with gas supply transported through the pipeline of "West-East Gas Transport Project";

1.Huaneng Shanghai Combined Cycle Gas Turbine Power Plant ("Shanghai CCGT") with gas supply transported through the pipeline of "West-East Gas Transport Project";26
2.Huaneng Jiangsu Jinling Combined Cycle Gas Turbine Power Plant ("Jinling CCGT") with gas supply transported through the pipeline of "West-East Gas Transport Project";
3.Huaneng Jiangsu Jinling Combined Cycle Gas Turbine Co-generation Power Plant ("Jinling CCGT Co-generation") with gas supply transported through the pipeline of "West-East Gas Transport Project";
4.Huaneng Beijing Co-generation CCGT Power Plant ("Beijing Co-generation CCGT") with gas supply transported through Shaanxi-Beijing Pipeline;
5.Huaneng Zhejiang Tongxiang Combined Cycle Gas Turbine Power Plant ("Tongxiang CCGT"), with gas supply transported through the pipeline of "West-East Gas Transport Project";
6.Huaneng Chongqing Liangjiang Combined Cycle Gas Turbine Power Plant ("Liangjiang CCGT") with gas supply transported through the pipeline of "West-East Gas Transport Project";

●Huaneng Beijing Co-generation CCGT Power Plant ("Beijing Co-generation CCGT") with gas supply transported through Shaanxi-Beijing Pipeline;
7.Huaneng Tianjin Lingang Combined Cycle Gas Turbine Co-generation Power Plant ("Lingang CCGT Co-generation") with gas supply by CNOOC Tianjin Trading Branch and Petro China Tianjin Trading Branch;
8.Huaneng Shanxi Dongshan Combined Cycle Gas Turbine Power Plant ("Dongshan CCGT") with gas supply transported through Shaanxi-Beijing Pipeline II; and

●Huaneng Zhejiang Tongxiang Combined Cycle Gas Turbine Power Plant ("Tongxiang CCGT"), with gas supply transported through the pipeline of "West-East Gas Transport Project";
9.Huaneng Hainnan Nanshan Combined Cycle Gas Turbine Power Plant ("Nanshan CCGT") with gas supply by CNOOC Hainan Branch.
10.               Huaneng Zhongyuan Combined Cycle Gas Turbine Power Plant ("Zhongyuan CCGT") with gas supply transported through the pipeline of "West-East Gas Transport Project".

●Huaneng Chongqing Liangjiang Combined Cycle Gas Turbine Power Plant ("Liangjiang CCGT") with gas supply transported through the pipeline of "West-East Gas Transport Project";
Also,

●Huaneng Tianjin Lingang Combined Cycle Gas Turbine Co-generation Power Plant ("Lingang CCGT Co-generation") with gas supply by CNOOC Tianjin Trading Branch and Petro China Tianjin Trading Branch;

●Huaneng Shanxi Dongshan Combined Cycle Gas Turbine Power Plant ("Dongshan CCGT") with gas supply transported through Shaanxi-Beijing Pipeline II;

●Huaneng Hainan Nanshan Combined Cycle Gas Turbine Power Plant ("Nanshan CCGT") with gas supply by CNOOC Hainan Branch;

●Huaneng Zhongyuan Combined Cycle Gas Turbine Power Plant ("Zhongyuan CCGT") with gas supply transported through the pipeline of "West-East Gas Transport Project";

●Huaneng Jiangsu Suzhou Combined Cycle Gas Turbine Co-generation Power Plant ("Suzhou CCGT Co-generation ") with gas supply transported through the pipeline of "West-East Gas Transport Project"; and

●Huaneng Guangxi Guilin Distributed Energy Project ("Guilin Distributed Energy") with gas supply by Petro China Nanning Branch.
In addition, Tuas Power in Singapore has five gas-fired combined cycle generating units and three gas-fired backup boilers. The piped gas for Tuas Power is provided by Pavilion Gas Pte Ltd and Sembcorp Gas Pte Ltd., whereas LNG is provided by Shell Gas Marketing Pte Ltd (formally known as BG Singapore Gas Marketing Pte Ltd).
29
Oil
Tuas Power maintains operation of one 600 MW oil-fired steam generating unit. The oil supply for Tuas Power is purchased from the open market. With the increased competition from new gas-fired CCPs, fuel oil consumption is expected to be marginal at best and therefore future purchases, if any, will be on a spot basis. Diesel, as backup fuel for oil-fired unites,units, is also purchased on a spot basis.
Repairs and maintenance
Each of our power plants has a timetable for routineshall conduct repairs and maintenance regular inspections and repairs. Such timetables and the procedures foras per the repairs and maintenance plan issued by the regional grid company. The daily repairs and maintenance procedure of generating units shall comply with the relevant regulations promulgated byrules and technical specifications of the former MinistryCompany.
We arrange our annual repairs and maintenance plan based on the operating status and equivalent operating hours (“EOH”) of Electricity Power.generating units:
Pursuant to our procedures, generating units are currently operating on a cycle of four to six years. In each cycle, there are four different levels of maintenance:

(i)●regular checksfor imported units of and routineabove 300MW, and domestically-built units of and above 600MW, we arrange an A-grade repairs and maintenance are carried out throughout the period duringafter 60,000 EOH, after which, generating unit is in operation;we arrange a B-grade repairs and maintenance after 30,000 EOH each;

27

(ii)●for domestically-built units below 600MW, we arrange an A-grade repairs and maintenance after 40,000 EOH, after which we arrange a small-scale servicingB-grade repairs and maintenance after 20,000 EOH each, provided, that a C-grade repairs and maintenance shall be conducted after 10,000 EOH or 18 months, whichever is performed every year, which takes approximately 20 days;longer;

(iii)●for all units not scheduled for any A-grade, B-grade or C-grade repairs and maintenance within a medium-scale check-up is carried out between thecalendar year, a D-grade repairs and maintenance shall be arranged;

●for all high backpressure heating units and circulating fluidized bed boilers, we arrange a separate D-grade repairs and maintenance each calendar year;

●in principle, we arrange no C-grade or above repairs and maintenance for units newly put into operations, but only one D-grade repairs and maintenance for every two overhauls, the length of which depends on the actual condition of the generating unit at the time of the check-up and the inspections and improvements to be carried out;units; and

(iv)●a full-scale overhaul is conducted atfor CCGT units, we arrange repairs and maintenance pursuant to the end of each operating cycle, which takes approximately 60 days.long-term servicing agreement.
C.           
C.Organizational structure
We are 33.33%32.28% owned by HIPDC, which in turn is a subsidiary of Huaneng Group. Huaneng Group was established in 1988 with the approval of the State Council. Huaneng Group also holds a 13.83%13.39% equity interest in us besides HIPDC.in addition to HIPDC's ownership. In 2002, Huaneng Group was restructured as one of the five independent power generation group companies to take over the power generation assets originally belonging to the State Power Corporation of China. Huaneng Group has a registered capital of RMB20 billion and is controlled and managed by the central government. Huaneng Group is principally engaged in the development, investment, construction, operation and management of power plants; organizing the generation and sale of power (and heat); and the development, investment, construction, production and sale of products in relation to energy, transportation, new energy and environmental protection industries.
HIPDC was established in 1985 as a joint venture controlled by Huaneng Group. HIPDC is engaged in developing, investing, operating and constructing power plants in China. Some of the power plants currently owned and operated by us were originally built and later transferred to us by HIPDC. Both Huaneng Group and HIPDC have agreed to give us preferential rights in the power development business and power assets transfers. See "Item 7.A. Major shareholders" for details.
The following organizational chart sets forth the organizational structure of HIPDC and us as of March 31, 2017:2019:


3028

2019:


_____________________________
Notes:
*Huaneng Group indirectly holds 100% equity interests in Pro-Power Investment Limited through its wholly owned subsidiary, China Hua Neng Hong Kong Company Limited, and Pro-Power Investment Limited in turn holds 25% equity interests in HIPDC. As a result, Huaneng Group beneficially holds 100% of equity interests in HIPDC.

**Of the 13.83%13.39% equity interest, 10.23%9.91% was directly held by Huaneng Group, 3.11%3.01% was held by Huaneng Group through its wholly owned subsidiary, China Hua Neng Hong Kong Company Limited, and the remaining approximately 0.49%0.47% was held by Huaneng Group through its subsidiary, China Huaneng Finance Corporation Limited.
For a detailed discussion of the Company's subsidiaries, see Note 9 to the Financial Statements.
D.            Property, plants and equipment
D.Property, plants and equipment
The following table presents certain summary information on our power plants as of MarchDecember 31, 2017.2018.
Plant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW     (MW) % MW  
                    
Heilongjiang Province
                    
Xinhua Power Plant Unit I: Sep. 1979 1 x 200 70% 140 Coal Unit I: Sep. 1979 1 x 200 70% 140 Coal
 Unit II: Sep. 2005 1 x 330 70% 231   Unit II: Sep. 2005 1 x 330 70% 231  
Hegang Power Plant Unit I: Nov. 1998 1x 300 64% 192 Coal Unit I: Nov. 1998 1x 300 64% 192 Coal
 Unit II: Nov. 1999 1x 300 64% 192   Unit II: Nov. 1999 1x 300 64% 192  
 Unit III: Apr. 2007 1 x 600 64% 384   Unit III: Apr. 2007 1 x 600 64% 384  
Daqing Co-generation Unit I: Jun. 2013 1 x 350 100% 350 Coal Unit I: Jun. 2013 1 x 350 100% 350 Coal
 Unit II: Aug. 2013 1 x 350 100% 350   Unit II: Aug. 2013 1 x 350 100% 350  
Yichun Co-generation Unit I: Sep. 2015 1 x 350 100% 350 Coal Unit I: Sep. 2015 1 x 350 100% 350 Coal
 Unit II: Dec. 2015 1 x 350 100% 350  
Sanjiangkou Wind Power 66 turbines: Feb. 2010 99 82.85% 82 Wind
Linjiang Jiangsheng Wind Power 66 turbines: Oct. 2015 99 82.85% 82 Wind
Daqing Heping Aobao Wind Power 32 turbines: Dec. 2011 96 100% 96 Wind
 32 turbines: May 2012 96 100% 96  
 32 turbines: Dec. 2013 96 100% 48  
Zhaodong Dechang Photovoltaic Dec. 2017 20 100% 20 Solar
Shuangyu Photovoltaic          
Shuangyu Photovoltaic Jul. 2018 20 100% 20 Solar
Xinhua Photovoltaic Jun. 2018 20 100% 20 Solar
Donghai Photovoltaic Jul. 2018 20 100% 20 Solar
          
Jilin Province
          
Jiutai Power Plant Unit I: Oct. 2009 1 x 670 100% 670 Coal
 Unit II: Dec. 2009 1 x 670 100% 670  
Changchun Co-generation Unit I: Dec. 2009 1 x 350 100% 350 Coal
 Unit II: Apr. 2010 1 x 350 100% 350  
Nongan Biomass Dec. 2011 1 x 25 100% 25 Biomass
Linjiang Jubao Hydropower Sep. 2004 2 x 10 100% 20 Solar
Zhenlai Wind Power 33 turbines: Jun. 2009 49.5 100% 49.5 Wind
 33 turbines: Dec. 2011 49.5 100% 49.5  


29

Plant or Expansion 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
Siping Wind Power 50 turbines: Oct. 2010 75 100% 75 Wind
  25 turbines: Nov. 2010 50 100% 50  
  50 turbines: Dec. 2010 75 100% 75  
Tongyu Tuanjie Wind Power 74 turbines: Dec. 2015 148 100% 148 Wind
Linjiang Jubao Photovoltaic Jun. 2017 15 100% 15 Solar
Zhenlai Photovoltaic Jun. 2018 20 50% 10 Solar
           
Liaoning Province
          
Dalian Power Plan          
Phase I Unit I: Sep. 1988 2 x 350 100% 700 Coal
  Unit II: Dec. 1988        
Phase II Unit III: Jan. 1999 2 x 350 100% 700 Coal
  Unit IV: Jan. 1999        
Dandong Power Plant Unit I: Jan. 1999 2 x 350 100% 700 Coal
  Unit II: Jan. 1999        
Yingkou Power Plant          
Phase I Unit I: Jan. 1996 2 x 320 100% 640 Coal
  Unit II: Dec. 1996        
Phase II Unit III: Aug. 2007 2 x 600 100% 1,200 Coal
  Unit IV: Oct. 2007        
Yingkou Co-generation Unit I: Dec. 2009 2 x 330 100% 660 Coal
  Unit II: Dec. 2009        
Wafangdian Wind Power 24 turbines: Jun. 2011 48 100% 48 Wind
Changtu Wind Power 33 turbines: Nov. 2012 97.5 100% 97.5 Wind
  24 turbines: Oct. 2014        
Suzihe Hydropower 2012 3 x 12.5 100% 37.5 Hydro
Dandong Photovoltaic May. 2016 10 100% 10 Solar
Yingkou Co-generation Photovoltaic Jun. 2016 10 100% 10 Solar
Xianrendao Co-generation Mar. 2017 1 x 50 100% 50 Coal
Yingkou Xianrendao Co-generation Power Mar. 2017 2*50 100% 100 Coal
Jianchang Bashihan Photovoltaic          
Phase I Aug. 2017 22.03 100% 22.03 Solar
Phase II Aug. 2017 22.03 100% 22.03 Solar
Xiao Deyingzi Photovoltaic Aug. 2017 15.56 100% 15.56 Solar
Chaoyang Heiniuyingzi Photovoltaic Aug. 2017 18.79 100% 18.79 Solar
           
Inner Mongolia  Autonomous Region
          
Huade Wind Power          
Phase I 33 turbines: Dec. 2009 49.5 100% 49.5 Wind
Phase II 33 turbines: Jun. 2011 49.5 100% 49.5 Wind
           
Hebei Province
          
Shang' an Power Plant Unit I: Aug. 1990 2 x 350 100% 700 Coal
Phase I Unit II: Dec. 1990        
Phase II Unit III: Oct. 1997 2 x 330 100% 660 Coal
  Unit IV: Oct. 1997        
Phase III Unit V: Jul. 2008 2 x 600 100% 1,200 Coal
  Unit VI: Aug. 2008        


30

Plant or Expansion 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
Kangbao Wind Power          
Phase I 33 turbines: Jan. 2011 49.5 100% 49.5 Wind
Kangbao Xitan Photovoltaic Jun. 2016 20 100% 20 Solar
Zhuolu Dabao Wind Power 24 turbines: Mar. 2017 48 100% 48 Wind
Shang'an Dianchanghuichang Photovoltaic Dec. 2017 17 100% 17 Solar
           
Gansu Province
          
Pingliang Power Plant          
Phase I Unit I: Sep. 2000 3 x 325 65% 633.75 Coal
  Unit II: Jun. 2001        
  Unit III: Jun. 2003        
  Unit IV: Nov. 2003 1 x 330 65% 214.5 Coal
  Unit V: Feb. 2010 2 x 600 65% 780 Coal
  Unit VI: March 2010        
Jiuquan Wind Power 259 turbines: Dec. 2011 401 100% 401 Wind
Jiuquan II Wind Power 100 turbines: Dec. 2014 200 100% 200 Wind
  100 turbines: Jun. 2015 200 100% 200 Wind
Yumen Wind Power 24 turbines: Jun. 2015 48 100% 48 Wind
  67 turbines: Jun. 2015 100.5 100% 100.5 Wind
Yigang Wind Power 96 turbines: Dec. 2015 192 100% 192 Wind
           
Ningxia Autonomous Region
          
Ruyi Helan Rooftop Photovoltaic Jun. 2017 19.8 40% 7.92 Solar
           
Beijing Municipality
          
Beijing Co-generation          
Phase I Unit I: Jan. 1998 2 x 165 41% 135.3 Coal
  Unit II: Jan. 1998        
  Unit III: Dec. 1998 2 x 220 41% 180.4 Coal
  Unit IV: Jun. 1999        
  Unit V: Apr. 2004 1 x 75 41% 30.75 Coal
Beijing Co-generation CCGT          
Phase II Unit VI: Dec. 2011 2 x 306.9 41% 251.66 Gas
  Unit VII: Dec. 2011        
  Unit VIII: Dec. 2011 1 x 309.6 41% 126.936 Gas
Beijing Co-generation CCGT          
 Phase III Unit IX: Nov. 2017 2 x 342.97 41% 281.24 Gas
  Unit X: Nov. 2017        
  Unit XI: Nov. 2017 1 x 312.6 41% 128.166 Gas
           
Tianjin Municipality
          
Yangliuqing Co-generation Unit I: Dec. 1998 4 x 300 55% 660 Coal
  Unit II: Sep. 1999        
  Unit III: Dec. 2006        
  Unit IV: May 2007        
Lingang Co-generation CCGT Unit I: Dec. 2014 1 x 313 55% 254.65 Gas
    1 x 150      
Chenxi Photovoltaic Jun. 2017 2.2 55% 1.21 Solar


31

Plant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
           
  Unit II: Dec. 2015 1 x 350 100% 350  
Sanjiangkou Wind Power 66 turbines: Feb. 2010 99 82.85% 82 Wind
Linjiang Jiangsheng Wind Power 66 turbines: Oct. 2015 99 82.85% 82 Wind
Daqing Heping Aobao Wind Power 32 turbines: Dec. 2011 96 100% 96 Wind
  32 turbines: May. 2012 96 100% 96  
  16 turbines: Dec. 2016 48 100% 48  
  16 turbines: Dec. 2016 48 100% 48  
Jilin Province
          
Jiutai Power Plant Unit I: Oct. 2009 1 x 670 100% 670 Coal
  Unit II: Dec. 2009 1 x 670 100% 670  
Changchun Co-generation Unit I: Dec. 2009 1 x 350 100% 350 Coal
  Unit II: Apr. 2009 1 x 350 100% 350  
Nongan Biomass Dec. 2011 1 x 25 100% 25 Biomass
Linjiang Jubao Hydropower Sep. 2004 2 x 10 100% 20 Solar
Zhenlai Wind Power 33 turbines: Jun. 2009 49.5 100% 49.5 Wind
  33 turbines: Dec. 2011 49.5 100% 49.5  
Siping Wind Power 50 turbines: Oct. 2010 75 100% 75 Wind
  25 turbines: Nov. 2010 50 100% 50  
  50 turbines: Dec. 2010 75 100% 75  
Tongyu Tuanjie Wind Power 74 turbines: Dec. 2015 148 100% 148 Wind
Liaoning Province
          
Dalian Power Plant       Phase I Unit I: Sep. 1988 2 x 350 100% 700 Coal
  Unit II: Dec. 1988        
Phase II Unit III: Jan. 1999 2 x 350 100% 700 Coal
  Unit IV: Jan. 1999        
Dandong Power Plant Unit I: Jan. 1999 2 x 350 100% 700 Coal
  Unit II: Jan. 1999        
Yingkou Power Plant   Phase I Unit I: Jan. 1996 2 x 320 100% 640 Coal
  Unit II: Dec. 1996        
Phase II Unit III: Aug. 2007 2 x 600 100% 1,200 Coal
  Unit IV: Oct. 2007        
Yingkou Co-generation Unit I: Dec. 2009 2 x 330 100% 660 Coal
  Unit II: Dec. 2009        
Wafangdian Wind Power 24 turbines: Jun. 2011 48 100% 48 Wind
Changtu Wind Power 33 turbines: Nov. 2012 97.5 100% 97.5 Wind
  24 turbines: Oct. 2014        
Suzihe Hydropower 2012 3 x 12.5 100% 37.5 Hydro
Dandong Photovoltaic May. 2016 10 100% 10 Solar
Yingkou Co-generation Photovoltaic Jun. 2016 10 100% 10 Solar
Xianrendao Co-generation Mar. 2017 1 x 50 100% 50 Coal
Inner Mongolia
          
Autonomous Region
          
Huade Wind Power      Phase I 33 turbines: Dec. 2009 49.5 100% 49.5 Wind
Phase II 33 turbines: Jun. 2011 49.5 100% 49.5 Wind
Hebei Province
          
Shang' an Power Plant   Phase I Unit I: Aug. 1990 2 x 350 100% 700 Coal
  Unit II: Dec. 1990        
  Phase II Unit III: Oct. 1997 2 x 330 100% 660 Coal
  Unit IV: Oct. 1997        
Plant or Expansion 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
Shanxi Province
          
Yushe Power Plant Unit III: Oct. 2004 2 x 300 60% 360 Coal
  Unit IV: Nov. 2004        
Zuoquan Power Plant Unit I: Dec. 2011 2 x 673 80% 1,076.8 Coal
  Unit II: Jan. 2012        
Dongshan CCGT Unit I: Oct. 2015 2 x297.7 100% 595.4 Gas
  Unit II: Oct. 2015        
  Unit III: Oct. 2015 263.6 100% 263.6 Gas
Yushe Photovoltaic Jun. 2017 50 100% 50 Solar
Yushe Fupin Photovoltaic Aug. 2018 10.5 90% 9.45 Solar
           
Shandong Province
          
Dezhou Power Plant          
Phase I Unit I: 1992 1 x 330 100% 330 Coal
  Unit II: 1992 1 x 320 100% 320 Coal
Phase II Unit III: Jun. 1994 1 x 330 100% 330 Coal
  Unit IV: May 1995 1 x 320 100% 320 Coal
Phase III Unit V: Jun. 2002 2 x 700 100% 1,400 Coal
  Unit VI: Oct. 2002        
Jining Power Plant          
Circulating fluidized bed boiler Unit V: Jul. 2003 2 x 135 100% 270 Coal
  Unit VI: Aug. 2003        
Co-generation Unit I: Nov. 2009 2 x 350 100% 700 Coal
  Unit II: Dec. 2009        
Xindian Power Plant          
Phase III Unit V: Sep 2006 2 x 300 95% 570 Coal
  Unit VI: Nov. 2006        
Weihai Power Plant          
Phase II Unit III: Mar. 1998 2 x 320 60% 384 Coal
  Unit IV: Nov. 1998        
Phase III Unit V: Dec. 2012 2 x 680 60% 816 Coal
  Unit VI: Dec. 2012        
Rizhao Power Plant          
Phase I Unit I: Sep. 1999 1 x 350 88.8% 311 Coal
  Unit II: Jan. 2003 1 x 350 88.8% 311  
Phase II Dec. 2008 2 x 680 100% 1,360 Coal
           
Zhanhua Co-generation Jul. 2005 2 x 165 100% 330 Coal
           
Baiyanghe Power Plant Unit I: Oct. 2003 1 x 145 80% 116 Coal
  Unit II: Oct. 2003 1 x 145 80% 116  
  Unit III: Dec. 2009 1 x 300 80% 240  
  Unit IV: Dec. 2009 1 x 300 80% 240  
Jiaxiang Power Plant Unit I: Oct. 2006 1 x 330 40% 132 Coal
  Unit II: May. 2007 1 x 330 40% 132  
Jining Co-generation Unit I: Apr. 2004 1 x 30 40% 12 Coal
  Unit II: Jul. 2004 1 x 30 40% 12  
Qufu Co-generation Unit I: Feb. 2009 1 x 225 40% 90 Coal
  Unit II: Sep. 2009 1 x 225 40% 90  
Huangtai Power Plant Unit I: Nov. 1987 1 x 330 72% 237.6 Coal
  Unit II: Jan. 2011 1 x 350 72% 252  
  Unit III: Jan. 2011 1 x 350 72% 252  


32

Plant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
           
   Phase III Unit V: Jul. 2008 2 x 600 100% 1,200 Coal
  Unit VI: Aug. 2008        
Kangbao Wind Power    Phase I 33 turbines: Jan. 2011 49.5 100% 49.5 Wind
Kangbao Xitan Photovoltaic Jun. 2016 20 100% 20 Solar
Gansu Province
          
Pingliang Power Plant Unit I: Sep. 2000 3 x 325 65% 633.75 Coal
  Unit II: Jun. 2001        
  Unit III: Jun. 2003        
  Unit IV: Nov. 2003 1 x 330 65%  214.5  Coal
  Unit V: Feb. 2010 2 x 600 65%  780  Coal
  Unit VI: March 2010        
Jiuquan Wind Power 259 turbines: Dec. 2011 401 100%  401  Wind
Jiuquan II Wind Power 100 turbines: Dec. 2014 200 100%  200 Wind
  100 turbines: Jun. 2015 200 100%  200  Wind
Yumen Wind Power 24 turbines: Jun. 2015 48 100%  48  Wind
  67 turbines: Jun. 2015 100.5 100%  100.5  Wind
Yigang Wind Power 96 turbines: Dec. 2015 192 100%  192  Wind
Beijing Municipality
          
Beijing Co-generation Unit I: Jan. 1998 2 x 165 41% 135.3 Coal
  Unit II: Jan. 1998        
  Unit III: Dec. 1998 2 x 220 41% 180.4 Coal
  Unit IV: Jun. 1999        
  Unit V: Apr. 2004 1 x 75 41% 30.75 Coal
Beijing Co-generation CCGT Unit I: Dec. 2011 2 x 306.9 41% 251.66 Gas
  Unit II: Dec. 2011        
  Unit III: Dec. 2011 1 x 309.6 41% 126.936 Gas
Tianjin Municipality
          
Yangliuqing Co-generation Unit I: Dec. 1998 4 x 300 55% 660 Coal
  Unit II: Sep. 1999        
  Unit III: Dec. 2006        
  Unit IV: May 2007        
Lingang Co-generation CCGT Unit I: Dec. 2014 1 x 313 100% 463 Gas
    1 x 150      
           
Shanxi Province
          
Yushe Power Plant       Phase I Unit I: Aug. 1994 2 x 100 60% 120 Coal
  Unit III: Dec. 1994        
Phase II Unit IV: Oct. 2004 2 x 300 60% 360 Coal
  Unit II: Nov. 2004        
Zuoquan Power Plant Unit I: Dec. 2011 2 x 673 80% 1,076.8 Coal
  Unit II: Jan. 2012        
Dongshan CCGT Unit I: Oct. 2015 2 x297.7 100%  595.4  Gas
  Unit II: Oct. 2015        
  Unit III: Oct. 2015 263.6 100%  263.6  Gas
Shandong Province
          
Dezhou Power Plant Phase I
 Unit I: 1992 1 x 330 100% 330 Coal
  Unit II: 1992 1 x 320 100% 320 Coal
Phase II Unit III: Jun. 1994 1 x 330 100% 330 Coal
Plant or Expansion 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
Yantai Power Plant Unit I: Apr. 1996 1 x 110 80% 88 Coal
  Unit II: Oct. 2005 1 x 160 80% 128  
  Unit III: Dec. 2005 1 x 160 80% 128  
  Unit IV: Oct. 2006 1 x 160 80% 128  
Linyi Power Plant Unit I: Dec. 2012 1 x 350 60% 210 Coal
  Unit II: Oct. 2013 1 x 350 60% 210  
  Unit III: Dec. 1997 1 x 140 60% 84  
  Unit IV: Apr. 2003 1 x 140 60% 84  
  Unit V: Sep. 2003 1 x 140 60% 84  
  Unit VI: Apr. 2005 1 x 140 60% 84  
Jining Yunhe Power Plant Unit I: Jul. 2000 1 x 145 78.68% 114.09 Coal
  Unit II: Nov. 2000 1 x 145 78.68% 114.09  
  Unit III: Sep. 2003 1 x 145 78.68% 114.09  
  Unit IV: Feb. 2004 1 x 145 78.68% 114.09  
  Unit V: Sep. 2006 1 x 330 78.68% 259.64  
  Unit VI: Mar. 2006 1 x 330 78.68% 259.64  
Liaocheng Co-generation Unit I: Jan. 2006 1 x 330 60% 198 Coal
  Unit II: Sep. 2006 1 x 330 60% 198  
Zhongtai Power Plant Unit I: May. 2007 1 x 150 80% 120 Coal
  Unit II: Dec. 2007 1 x 150 80% 120  
Laiwu Power Plant Unit I: Dec. 2015 1 x 1000 64% 640 Coal
  Unit II: Nov. 2016 1 x 1000 64% 640  
Muping Wind Power 28 turbines: Dec. 2010 42 80% 34 Wind
Penglai Wind Power 24 turbines: Sep. 2014 48 80% 38.4 Wind
  1 turbine: Sep. 2014 1.8 80% 1.44  
  24 turbines: Oct. 2016 48 80% 38.4  
  1 turbine: Oct. 2016 1.8 80% 1.44  
Rushan Wind Power 8 turbines: Sep. 2014 12 80% 9.6 Wind
  11 turbines: Sep. 2014 16.5 80% 13.2  
  2 turbines: Oct. 2016 3 80% 2.4  
  5 turbines: Oct. 2016 10.5 80% 8.4  
Rongcheng Wind Power 1 turbine: Jan. 2006 1.5 48% 0.72 Wind
  1 turbine: Jan. 2006 1.5 48% 0.72  
  1 turbine: Jan. 2006 1.5 48% 0.72  
  2 turbines: Feb. 2006 3 48% 1.44  
  2 turbines: Feb. 2006 3 48% 1.44  
  3 turbines: Mar. 2006 4.5 48% 2.16  
Dongying Wind Power 32 turbines: Dec. 2009 48 56% 27 Wind
Boshan Photovoltaic May. 2016 12 80% 10 Solar
Sishui Photovoltaic Jun. 2015 20 80% 16 Solar
Gaozhuang Photovoltaic May. 2016 20 80% 16 Solar
Jining Co-generation Photovoltaic Feb. 2017
 20 80% 16 Solar
Zhanhua Qingfenghu Wind Power 50 turbines: Dec. 2017 100 80% 80 Wind
Jining Photovoltaic Feb. 2017 20 80% 16 Solar
Laiwu Niuquan Photovoltaic Apr. 2017 20 80% 16 Solar
Furuite Rooftop Photovoltaic Jun. 2017 6.3 95% 5.99 Solar
Zhanhua Qingfenghu Photovoltaic Jun. 2017 100 46% 46 Solar
Weihai Haibu Photovoltaic Jun. 2017 19.75 80% 15.8 Solar
Jining Weishan Zhaozhuang Photovoltaic Dec. 2017 80 40% 64 Solar
Laizhou Wind Power 72 turbines: Apr. 2007 98.25 64% 62.88 Wind


33

Plant or Expansion  
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel
(Names as defined below)    (MW) % MW  
            
   Unit IV: May 1995 1 x 320 100% 320 Coal
   Phase III Unit V: Jun. 2002 2 x 700 100% 1,400 Coal
   Unit VI: Oct. 2002        
Jining Power Plant      Coal-fired Unit V: Jul. 2003 2 x 135 100% 270 Coal
   Unit VI: Aug. 2003        
 Co-generation Unit I: Nov. 2009 2 x 350 100% 700 Coal
   Unit II: Dec. 2009        
Xindian Power PlantPhase III Unit V: Sep 2006 2 x 300 95% 570 Coal
   Unit VI: Nov. 2006        
Weihai Power PlantPhase II Unit III: Mar. 1998 2 x 320 60% 384 Coal
   Unit IV: Nov. 1998        
Phase III Unit V: Dec. 2012 2 x 680 60% 816 Coal
   Unit VI: Dec. 2012        
Rizhao Power PlantPhase II Dec. 2008 2 x 680 100% 1,360 Coal
            
Zhanhua Co-generation  Jul. 2005 2 x 165 100% 330 Coal
            
Baiyanghe Power Plant  Unit I: Oct. 2003 1 x 145 80% 116 Coal
   Unit II: Oct. 2003 1 x 145 80% 116  
   Unit III: Dec. 2009 1 x 300 80% 240  
   Unit IV: Dec. 2009 1 x 300 80% 240  
Rizhao Power PlantPhase I Unit I: Sep. 1999 1 x 350 88.8% 311 Coal
   Unit II: Jan. 2003 1 x 350 88.8% 311  
Jiaxiang Power Plant  Unit I: Oct. 2006 1 x 330 40% 132 Coal
   Unit II: May. 2007 1 x 330 40% 132  
Jining Co-generation  Unit I: Apr. 2004 1 x 30 40% 12 Coal
   Unit II: Jul. 2004 1 x 30 40% 12  
Qufu Co-generation  Units I: Feb. 2009 1 x 225 40% 90 Coal
   Unit II: Sep. 2009 1 x 225 40% 90  
Huangtai Power Plant  Unit I: Nov. 1987 1 x 330 72% 237.6 Coal
   Unit II: Jan. 2011 1 x 350 72% 252  
   Unit III: Jan. 2011 1 x 350 72% 252  
Yantai Power Plant  Unit I: Apr. 1996 1 x 110 80% 88 Coal
   Unit II: Oct. 2005 1 x 160 80% 128  
   Unit III: Dec. 2005 1 x 160 80% 128  
   Unit IV: Oct. 2006 1 x 160 80% 128  
Linyi Power Plant  Unit I: Dec. 2012 1 x 350 60% 210 Coal
   Unit II: Oct. 2013 1 x 350 60% 210  
   Unit III: Dec. 1997 1 x 140 60% 84  
   Unit IV: Apr. 2003 1 x 140 60% 84  
   Unit V: Sep. 2003 1 x 140 60% 84  
   Unit VI: Apr. 2005 1 x 140 60% 84  
Jining Yunhe Power Plant  Unit I: Jul. 2000 1 x 145 78.68% 114.09 Coal
   Unit II: Nov. 2000 1 x 145 78.68% 114.09  
   Unit III: Sep. 2003 1 x 145 78.68% 114.09  
   Unit IV: Feb. 2004 1 x 145 78.68% 114.09  
   Unit V: Sep. 2006 1 x 330 78.68% 259.64  
   Unit VI: Mar. 2006 1 x 330 78.68% 259.64  
Liaocheng Co-generation  Unit I: Jan. 2006 1 x 330 60% 198 Coal
Plant or Expansion 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
Henan Province
          
Qinbei Power Plant          
Phase I Unit I: Nov. 2004 2 x 600 60% 720 Coal
  Unit II: Dec. 2004        
Phase II Unit III: Nov. 2007 2 x 600 60% 720 Coal
  Unit IV: Nov. 2007        
Phase III Unit V: Mar. 2012 2 x 1000 60% 1,200 Coal
  Unit VI: Feb. 2013        
Zhongyuan CCGT Unit I: Aug. 2007 2 x 390 90% 702 Coal
  Unit II: Jan. 2008        
Luoyang Co-generation Power Plant Unit I: May. 2015 2 x 350 80% 560 Coal
  Unit II: Jun. 2015        
Luoyang Yangguang Power Plant Unit I: Jun. 2006 2 x 135 80% 216 Coal
  Unit II: Oct. 2006        
Mianchi Co-generation Unit I: Dec. 2016 2 x 350 60% 420 Coal
  Unit II: Dec. 2016        
Zhumadian Wind Power 16 turbines: Dec. 2016 32 90% 28.8 Wind
Qinbei Dianchanghuichang
  Photovoltaic
 Jun. 2017 20 60% 12 Solar
Tangyin Wind Power 69 turbines: Dec. 2018 151.8 100% 151.8 Wind
           
Jiangsu Province
          
Nantong Power Plant          
Phase I Unit I: Sep. 1989 2 x 352 100% 704 Coal
  Unit II: Mar. 1990        
Phase II Unit III: Jul. 1999 2 x 350 100% 700 Coal
  Unit IV: Oct. 1999        
Nanjing Power Plant Unit I: Mar. 1994 2 x 320 100% 640 Coal
  Unit II: Oct. 1994        
Taicang Power Plant          
Phase I Unit I: Dec. 1999 2 x 320 75% 480 Coal
  Unit II: Apr. 2000        
Phase II Unit III: Jan. 2006 2 x 630 75% 945 Coal
  Unit IV: Feb. 2006        
Taicang Dianchanghuichang Photovoltaic Jun. 2018 50 75% 37.5 Solar
Huaiyin Power Plant          
Phase II Unit III: Jan. 2005 2 x 330 63.64% 420 Coal
  Unit IV: Mar. 2005        
Phase III Unit V: May 2006 2 x 330 63.64% 420 Coal
  Unit VI: Sep. 2006        
Huaiyin Dianchang Photovoltaic Jun. 2018 30 100% 30 Solar
Jinling Power Plant          
CCGT Unit I: Dec. 2006 2 x 390 60% 468 Gas
  Unit II: Mar. 2007        
CCGT-Cogeneration Unit I: April 2013 191.3 51% 97.56 Gas
  Unit II: May 2013 191.3 51% 97.56  
Jinling Coal-Fired Unit III: Dec. 2009 2 x 1,030 60% 1,236 Coal
  Unit IV: Aug. 2012        
Suzhou Co-generation Unit I: Aug. 2006 2 x 60 53.45% 64.14 Coal
  Unit II: Oct. 2006        


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

Plant or Expansion 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
Nanjing Chemical Industry Park Co-generation Unit I: Apr. 2016 50 70% 35 Coal
  Unit II: Dec. 2016 50 70% 35  
Qidong Wind Power          
Phase I 61 turbines: Mar. 2009 91.5 65% 59.5 Wind
Phase II 25 turbines: Jan. 2011 50 65% 32.5 Wind
  22 turbines: Jun. 2012 44 65% 28.6 Wind
Rudong Wind Power 24 turbines: Nov. 2013 48 90% 43.2 Wind
Tongshan Wind Power          
Phase I 25 turbines: Mar. 2016 50 70% 35 Wind
Phase II 24 turbines: Dec. 2017 48 70% 33.6 Wind
Luhe Wind Power 25 turbines: Dec. 2016 50 100% 50 Wind
Rudong Offshore Wind Power 26 turbines: Mar, 2017 106.4 70% 211.68 Wind
  44 turbines: Sep. 2017 196      
Guanyun Power Unit I: Dec. 2017 2 x 25 100% 50 Coal
  Unit II: Dec. 2017        
Suzhou CCGT Unit I: Jul. 2017 178 100% 452 Gas
  Unit II: Jul. 2017 48      
  Unit III: Sep. 2017 178      
  Unit IV: Sep. 2017 48      
Yizheng Wind Power          
Phase I 21 turbines: Dec. 2017 46.2 100% 46.2 Wind
Phase II
 6 turbines: Jul. 2018 13.8 100% 13.8 Wind
Guanyun Photovoltaic Jun. 2017 14.1 100% 14.1 Solar
           
Shanghai Municipality
          
Shidongkou I Unit I: Feb. 1988 4 x 325 100% 1,300 Coal
  Unit II: Dec. 1988        
  Unit III: Sep. 1989        
  Unit IV: May 1990        
Shidongkou II Unit I: Jun. 1992 2 x 600 100% 1,200 Coal
  Unit II: Dec. 1992        
Shidongkou Power Unit I: Oct. 2011 2 x 660 50% 660 Coal
  Unit II: Oct. 2011        
Shanghai CCGT Unit I: May 2006 3 x 390 70% 819 Gas
  Unit II: Jun. 2006        
  Unit III: Jul. 2006        
           
Chongqing Municipality
          
Luohuang Power Plant          
Phase I Unit I: Sep. 1991 2 x 360 60% 432 Coal
  Unit II: Feb. 1992        
Phase II Unit III: Dec. 1998 2 x 360 60% 432 Coal
  Unit IV: Dec. 1998        
Phase III Unit V: Dec. 2006 2 x 600 60% 720 Coal
  Unit VI: Jan. 2007        
Liangjiang CCGT Unit I: Oct. 2014 2 x 467 90% 840.6 Gas
  Unit II: Dec. 2014        
Fengjie Jinfengshan Wind Power 55 turbines: Dec. 2018 110 100% 110 Wind
           
Zhejiang Province
          
Changxing Power Plant Unit I: Dec. 2014 2 x 660 100% 1320 Coal
  Unit II: Dec. 2014        


35

Plant or Expansion
Actual
In-service Date
Current Installed CapacityOwnershipAttributable CapacityType of Fuel
(Names as defined below) (MW)%MW 
      
Nantong Power Plant Phase I
Unit I: Sep. 19892 x 352100%704Coal
 Unit II: Mar. 1990    
   Phase IIUnit III: Jul. 19992 x 350100%700Coal
 Unit IV: Oct. 1999    
Nanjing Power PlantUnit I: Mar. 19942 x 320100%640Coal
 Unit II: Oct. 1994    
Taicang Power Plant Phase I
Unit I: Dec. 19992 x 32075%480Coal
 Unit II: Apr. 2000    
  Phase IIUnit III: Jan. 20062 x 63075%945Coal
 Unit IV: Feb. 2006    
Huaiyin Power Plant Phase II
Unit III: Jan. 20052 x 33063.64%420Coal
 Unit IV: Mar. 2005    
 Phase IIIUnit V: May 20062 x 33063.64%420Coal
 Unit VI: Sep. 2006    
Jinling Power Plant      CCGTUnit I: Dec. 20062 x 39060%468Gas
 Unit II: Mar. 2007    
CCGTUnit I: April 20132 x 126.751%195.1Gas
CogenerationUnit II: May 20132 x 64.6   
Jinling Coal-FiredUnit III: Dec. 20092 x 1,03060%1,236Coal
 Unit IV: Aug. 2012    
Suzhou Co-generationUnit I: Aug. 20062 x 6053.45%64.14Coal
 Unit II: Oct. 2006    
Nanjing Chemical Industry Park Co-generationUnit I: Apr. 20165070%35Coal
 Unit II: Dec. 20165070%35 
Qidong Wind Power Phase I
61 turbines: Mar. 200991.565%59.5Wind
 Phase II25 turbines: Jan. 20115065%32.5Wind
 22 turbines: Jun. 20124465%28.6Wind
Rudong Wind Power24 turbines: Nov. 20134890%43.2Wind
Tongshan Wind Power25 turbines: Mar. 20165070%35Wind
Luhe Wind Power25 turbines: Dec. 201650100%50Wind
Rudong Offshore Wind Power 12 x 4.270%35.3Wind
Shanghai Municipality
     
Shidongkou IUnit I: Feb. 19884 x 325100%1,300Coal
 Unit II: Dec. 1988    
 Unit III: Sep. 1989    
 Unit IV: May 1990    
Shidongkou IIUnit I: Jun. 19922 x 600100%1,200Coal
 Unit II: Dec. 1992    
Shidongkou PowerUnit I: Oct. 20112 x 66050%660Coal
 Unit II: Oct. 2011    
Shanghai CCGTUnit I: May 20063 x 39070%819Gas
 Unit II: Jun. 2006    
 Unit III: Jul. 2006    
Chongqing Municipality
     
Luohuang Power Plant Phase I
Unit I: Sep. 19912 x 36060%432Coal
 Unit II: Feb. 1992    
     Phase IIUnit III: Dec. 19982 x 36060%432Coal
 Unit IV: Dec. 1998    
     Phase IIIUnit V: Dec. 20062 x 60060%720Coal
Plant or Expansion 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
Yuhuan Power Plant          
Phase I Unit I: Nov. 2006 2 x 1,000 100% 2,000 Coal
  Unit II: Dec. 2006        
Phase II Unit III: Nov. 2007 2 x 1,000 100% 2,000 Coal
  Unit IV: Nov. 2007        
Tongxiang CCGT Unit I: Sep. 2014 1 x 258.4 95% 245.48 Gas
  Unit II: Sep. 2014 1 x 200 95% 190 Gas
Changxing Photovoltaic Dec. 2014 5 100% 5 Solar
  Mar. 2015 5 100% 5 Solar
Changxing Hongqiao Photovoltaic Sep. 2016 30 100% 30 Solar
Huzhou Distributed Photovoltaic Jun. 2017 16.13 100% 20 Solar
  Dec. 2017 3.87      
Hunan Province
          
Yueyang Power Plant          
Phase I Unit I: Sep. 1991 2 x 362.5 55% 398.75 Coal
  Unit II: Dec. 1991        
Phase II Unit III: Mar. 2006 2 x 300 55% 330 Coal
  Unit IV: May 2006        
Phase III Unit V: Jan. 2011 2 x 600 55% 660 Coal
  Unit VI: Aug. 2012        
Xiangqi Hydropower Unit I: Dec. 2011 4 x 20 100% 80 Hydro
  Unit II: May 2012        
  Unit III: Jul. 2012        
  Unit IV: Aug. 2012        
Subaoding Wind Power 40 turbines: Dec. 2014 80 100% 80 Wind
  35 turbines: May. 2015 70 100% 70 Wind
Guidong Wind Power 42 turbines: Aug. 2015 48 100% 48 Wind
  18 turbines: Sep. 2015 36 100% 36 Wind
Yueyang Xingang Photovoltaic May. 2017 10 60% 6 Solar
Yueyang Leigutai Photovoltaic Jun. 2017 20 55% 11 Solar
           
Hubei Province
          
Enshi Maweigou Hydropower Dec. 2011 3 x 5 100% 15 Hydro
  Dec. 2015 2 x 20 100% 40 Hydro
Dalongtan Hydropower Unit I: May 2006 12 97% 11.64
 Hydro
  Unit II: Aug. 2005 12
 97%
 11.64
 Hydro
  Unit III: Mar. 2006 12
 97%
 11.64
  
  Unit IV: Oct. 2008 1 x 1.6 97% 1.552 Hydro
Wuhan Power Plant          
Phase I Unit I: Jun. 1993 2 x 300 75% 450 Coal
  Unit II: Jan. 1994        
Phase II Unit III: May 1997 2 x 330 75% 495 Coal
  Unite IV: Dec. 1997        
Phase III Unit V: Oct. 2006 2 x 600 75% 900 Coal
  Unit VI: Dec. 2006        
Jingmen Co-generation Unit I: Nov. 2014 2 x 350 100% 700 Coal
  Unit II: Oct. 2014        
Yingcheng Co-generation Unit II: Jan. 2015 1 x 350 100% 350 Coal
  Unit I: Jun. 2016 1 x 50 100% 50 Coal
Jieshan Wind Power          
Phase I 24 turbines: Jun. 2015 48 100% 48 Wind
Phase II 36 turbines: Aug. 2016 72 100% 72 Wind
Zhongxiang Hujiawan Wind Power 12 turbines: Dec. 2017 24 100% 24 Wind
  63 turbines: Aug. 2018 126 100% 126 Wind
Suizhou Zengdufuhe Photovoltaic Sep. 2017 16.7 100% 20 Solar
  Oct. 2017 3.3      


36

Plant or Expansion 
Actual
In-service Date
Current Installed CapacityOwnershipAttributable CapacityType of Fuel
(Names as defined below)  (MW)%MW 
       
  Unit VI: Jan. 2007    
Liangjiang CCGT Unit I: Oct. 20142 x 46790%840.6Gas
  Unit II: Dec. 2014    
Zhejiang Province
      
Changxing Power Plant Unit I: Dec. 20142 x 660100%1320Coal
  Unit II: Dec. 2014    
Yuhuan Power Plant 
Phase IUnit I: Nov. 20062 x 1,000100%2,000Coal
  Unit II: Dec. 2006    
 Phase IIUnit III: Nov. 20072 x 1,000100%2,000Coal
  Unit IV: Nov. 2007    
Tongxiang CCGT Unit I: Sep. 20141 x 258.495%245.48Gas
  Unit II: Sep. 20141 x 20095%190Gas
Changxing  Photovoltaic Dec. 20145100%5Solar
  Mar. 20155100%5Solar
Changxing Hongqiao Photovoltaic Sep. 201630100%30Solar
Hunan Province
      
Yueyang Power Plant 
Phase IUnit I: Sep. 19912 x 362.555% 398.75 Coal
  Unit II: Dec. 1991    
 Phase IIUnit III: Mar. 20062 x 30055% 330 Coal
  Unite IV: May 2006    
 Phase IIIUnit V: Jan. 20112 x 60055% 660 Coal
  Unit VI: Aug. 2012    
Xiangqi Hydropower Unit I: Dec. 20114 x 20100% 80 Hydro
  Unit II: May 2012    
  Unit III: Jul. 2012    
  Unit IV: Aug. 2012    
Subaoding Wind Power 40 turbines: Dec. 201480100%80 Wind
  35 turbines: May. 201570100%70 Wind
Guidong Wind Power 42 turbines: Aug. 201548100% 48 Wind
  18 turbines: Sep. 201536100% 36 Wind
Hubei Province
      
Enshi  Maweigou Hydropower Dec. 20113 x 5100% 15 Hydro
  Dec. 20152 x 20100% 40 Hydro
Dalongtan Hydropower Unit I: May 20063 x 1297% 34.92 Hydro
  Unit II: Aug. 20051 x 1.697% 1.55 Hydro
  Unit III: Mar. 2006    
Wuhan Power Plant 
Phase IUnit I: Jun. 19932 x 30075% 450 Coal
  Unit II: Jan. 1994    
 Phase IIUnit III: May 19972 x 33075% 495 Coal
  Unite IV: Dec. 1997    
 Phase IIIUnit V: Oct. 20062 x 60075% 900 Coal
  Unit VI: Dec. 2006    
Jingmen Co-generation Unit I: Nov. 20142 x 350100%700Coal
  Unit II: Oct. 2014    
Yingcheng Co-generation Unit II: Jan. 20151 x 350100%350Coal
  Unit I: Jun. 20161 x 50100%50Coal
Jieshan Wind Power 
Phase I24 turbines: Jun. 201548100% 48 Wind
 Phase II36 turbines: Aug. 201672100%72 Wind
Jiangxi Province
      
Plant or Expansion 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below)   (MW) % MW  
Jiangxi Province
          
Jinggangshan Power Plant          
Phase I Unit I: Dec. 2000 2 x 300 100% 600 Coal
  Unit II: Aug. 2001        
Phase II Unit III: Nov. 2009 2 x 660 100% 1,320 Coal
  Unit IV: Dec. 2009        
Jianggongling Wind Power 24 turbines: Dec. 2014 48 100% 48 Wind
  13 turbines: Dec. 2016 26 100%
 26 Wind
Ruijin Power Plant Unit I: May 2008 2 x 350 100% 700 Coal
  Unit II: Aug. 2008        
Anyuan Power Plant Unit I: Jun. 2015 2 x 660 100% 1,320 Coal
  Unit II: Aug. 2015        
Hushazui Wind Power 13 turbines: Dec. 2016 26 100% 26 Wind
Linghuashan Wind Power 26 turbines: Jun. 2017 52 100% 100 Wind
  24 Turbines: Sep. 2017 48      
Gaolongshan Wind Power 36 turbines: Nov. 2018 80 100% 80 Wind
           
Anhui Province
          
Chaohu Power Plant Unit I: May 2008 2 x 600 60% 720 Coal
  Unit II: Aug. 2008        
Hualiangting Hydropower Phase I Unit I: Oct. 1981 2 x 10 100% 20 Hydro
  Unit II: Nov. 1981        
Phase II Unit III: Nov. 1987 2 x 10 100% 20 Hydro
  Unit IV: Nov. 1987        
Huaining Wind Power 25 turbines: Jun. 2016 50 100% 50 Wind
  45 turbines: Dec. 2017 99 100% 99 Wind
           
Fujian Province
          
Fuzhou Power Plant          
Phase I Unit I: Sep. 1988 2 x 350 100% 700 Coal
  Unit II: Dec. 1988        
Phase II Unit III: Oct. 1999 2 x 350 100% 700 Coal
  Unit IV: Oct. 1999        
Phase III Unit V: Jul. 2010 2 x 660 100% 1,320
 Coal
  Unit VI: Oct. 2011
        
Changle Photovoltaic Jun. 2017 10 100% 10 Solar
           
Guangdong Province
          
Shantou Power Plant          
Phase I Unit VI: Oct. 2011 2 x 300 100% 600 Coal
  Unit I: Jan. 1997        
  Unit II: Jan. 1997        
Phase II Unit III: Oct. 2005 1 x 600 100% 600 Coal
Haimen Power
 Unit I: Jul. 2009 2 x 1,036 100% 2,072 Coal
  Unit II: Oct. 2009        
  Unit III: Mar. 2013 2 x 1,036 80% 1,657.6 Coal
  Unit IV: Mar. 2013        
Shantou Photovoltaic Sep. 2016 17 100% 17 Solar
Yunnan Province
          
Diandong Energy          
Phase I Unit I: Feb. 2006 2 x 600 100% 1,200 Coal
  Unit II: Jul. 2006        
Phase II��Unit III: Nov. 2006 2 x 600 100% 1,200 Coal
  Unit IV: May 2007        
Yuwang Energy          
Phase I Unit I: Jul. 2009 2 x 600 100% 1,200 Coal
  Unit II: Feb. 2010        
Fuyuan Wind Power          
Wenbishan Wind Power 20 turbines: Oct. 2014 40 100% 40 Wind
Yibasan Wind Power 24 turbines: Dec. 2015 48 100% 48 Wind
Shengjing Wind Power 24 turbines: Dec. 2016 48 100% 48 Wind
Guangliangzi Wind Power 24 turbines: Oct. 2017 48 100% 48 Wind


37

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

38

Plant or ExpansionPlant or Expansion 
Actual
In-service Date
 Current Installed Capacity Ownership Attributable Capacity Type of Fuel 
Actual In-
service Date
 Current Installed Capacity 
Owner-
ship
 Attributable Capacity Type of Fuel
(Names as defined below) (Names as defined below)    (MW) % MW     (MW) % MW  
Hainan Province
          
Haikou Power Plant Unit IV: May 2000 2 x 138 91.8% 253.368 Coal
 Unit V: May 1999        
 Unit VIII: Apr. 2006 2 x 330 91.8% 605.88 Coal
            Unit IX: May 2007        
Dongfang Power Plant
Phase I Unit I: Jun. 2009 2 x 350 91.8% 642.6 Coal          
Phase I Unit I: Jun. 2009 2 x 350 91.8% 642.6 Coal
  Unit II: Dec. 2009         Unit II: Dec. 2009        
Phase II Unit III: May 2012 2 x 350 91.8% 642.6 Coal
Phase II Unit III: May 2012 2 x 350 91.8% 642.6 Coal
  Unit IV: Dec. 2012         Unit IV: Dec. 2012        
Nanshan Co-generation  Unit I: Apr. 1995 2 x 50 91.8% 91.8 Gas Unit I: Apr. 1995 2 x 50 91.8% 91.8 Gas
  Unit II: Apr. 1995         Unit II: Apr. 1995        
  Unit III: Oct. 2003 2 x 16 91.8% 29.370 Gas Unit III: Oct. 2003 2 x 16 91.8% 29.370 Gas
  Unit IV: Oct. 2003         Unit IV: Oct. 2003        
Gezhen Hydropower  Unit I: Nov. 2009 2 x 40 91.8% 73.40 Hydro Unit I: Nov. 2009 2 x 40 91.8% 73.40 Hydro
  Unit II: Nov. 2009         Unit II: Nov. 2009        
  Unit III: Dec. 2009 2 x 1 91.8% 1.836 Hydro Unit III: Dec. 2009 2 x 1 91.8% 1.836 Hydro
  Unit IV: Dec. 2009         Unit IV: Dec. 2009        
Wenchang Wind Power  34 turbines: Jan. 2009 51.5 91.8% 47.277 Wind 34 turbines: Jan. 2009 51.5 91.8% 47.277 Wind
Dongfang Photovoltaic  Jul. 2016 12 91.8% 11.016 Solar Jul. 2016 12 91.8% 11.016 Solar
Chengmai Photovoltaic Jun. 2017 12.5 91.8% 11.475
 Solar
 Sep. 2017 12.5 91.8%
 11.475
  
 Sep. 2018 40 91.8%
 36.72 Solar
          
Guizhou Province
                     
Panxian Wind Power  12 turbines: Dec. 2015 24 100% 24 Wind
Panzhou Wind Power          
Dapashan Wind Power 12 turbines: Dec. 2015 24 100% 24 Wind
 9 turbines: Nov. 2017 18 100% 24 Wind
 3 turbines: Dec. 2017 6      
Jiaoziding Wind Power 16 turbines: Nov. 2017 32 100% 48 Wind
 8 turbines: Dec. 2017 16      
          
Guangxi Autonomous Region
          
Guilin Distributed Energy Unit I: Dec. 2017 3 x 70 80% 168 Gas
 Unit II: Dec. 2017        
 Unit III: Dec. 2017        
Singapore
  Unit I: Mar. 1999 1 x 600 100% 600 Oil          
Tuas Power  Unit III: Nov. 2001 4 x 367.5 100% 1,470 Gas Unit I: Mar. 1999 1 x 600 100% 600 Oil
  Unit IV: Jan. 2002         Unit III: Nov. 2001 4 x 367.5 100% 1,470 Gas
  Unit V: Feb. 2005         Unit IV: Jan. 2002        
  Unit VI: Sep. 2005         Unit V: Feb. 2005        
  Unit VII: Dec. 2013 405.9 100% 405.9   Gas Unit VI: Sep. 2005        
 Unit VII: Dec. 2013 405.9 100% 405.9 Gas
TMUC Phase I Feb. 2013 1 x 101 100% 101 Coal & biomass          
Phase IIA Jun. 2014 1 x 32.5 100% 32.5 Coal & biomass
Phase I Feb. 2013 1 x 101 100% 101 Coal & biomass
Phase IIA Jun. 2014 1 x 32.5 100% 32.5 Coal & biomass
Pakistan
          
Sahiwal 2017 1320 40% 528 Coal
The following table presents the availability factors and the capacity factors of our coal-fired operating power plants in China for the years ended December 31, 2014, 20152016, 2017 and 2016.2018.

Coal-fired Power Plant Availability factor (%)  Capacity factor (%) 
  2014  2015  2016  2014  2015  2016 
Liaoning Province
                  
Dalian  97.76   92.95   99.86   54.13   49.04   49.91 
Dandong  95.89   93.34   97.4   52.14   49.74   47.49 
Yingkou  94.16   100   100   49.64   48.86   48.70 
Yingkou Co-generation  100   100   100   52.63   53.35   43.55 
38

Coal-fired Power Plant Availability factor (%)  Capacity factor (%) 
  2016  2017  2018  2016  2017  2018 
Heilongjiang Province
                  
Xinhua Power Plant  —   99.83   99.98   —   54.41   50 
Hegang Power Plant  —   94.18   89.14   —   42.01   43.32 
Daqing Co-generation  —   92.85   95.28   —   49.9   49.58 
Yichun Co-generation  —   94.08   89.91   —   43.15   46.30 
Jilin Province
                        
Jiutai Power Plant  —   99.89   95.29   —   43.63   46.42 
Changchun Co-generation  —   92.98   95.24   —   49.09   53.72 
Liaoning Province
                        
Dalian  99.86   99.94   92.17   49.91   50.69   47.02 
Dandong  97.4   100   93.84   47.49   46.08   46.10 
Yingkou  100   95.35   93.41   48.70   47.77   45.81 
Yingkou Co-generation  100   92.36   90.48   43.55   51.81   47.47 
Hebei Province
                        
Shang'an  93.18   91.72   88.82   57.50   58.56   58.53 
Gansu Province
                        
Pingliang  96.3   95.74   94.74   39.77   40.34   48.29 
Beijing Municipality
                        
Beijing Cogeneration  92.79   98.28   97.57   45.89   18.09   23.43 
Tianjin Municipality
                        
Yangliuqing  96.78   93.39   91.64   53.38   53.82   55.11 
Shanxi Province
                        
Yushe  94.77   93.97   96.13   53.01   43.76   53.31 
Zuoquan  87.61   81   96.05   46.68   40.16   50.93 
Shandong Province
                        
Dezhou
  93.96   96.59   91.71   57.97   55.1   58.08 
Jining
  91.35   96.1   94.82   59.22   59.88   53.61 
Weihai  93.47   94.71   99.20   65.83   59.7   61.24 
Xindian
  90.10   94.73   91.24   63.07   69.97   59.20 
Rizhao Power
  90.12   94.87   94.13

  62.89   64.60   61.15

Rizhao II
  94.08   93.97   94.13   66.34   60.48   61.15 
Zhanhua Co-generation  97.32   92.1   99.48   55.27   43.84   48.54 
Laiwu Power Plant
  —   97.41   95.71   —   60.7   61.49 
Baiyanghe Power Plant
  —   93.71   97.57   —   59.63   56.58 
Huangtai Power Plant
  —   96.41   90.87   —   59.17   60.00 
Yantai Power Plant
  —   97.58   97.85   —   44.14   60.60 
Liaocheng Co-generation  —   94.05   93.58   —   50.01   58.63 
Linyi Power Plant  —   95.78   96.90   —   54.44   57.54 
Jining Yunhe Power Plant  —   96.68   91.99   —   60.99   52.72 
Qufu Co-generation  —   94.43   96.36   —   60.19   63.59 
Jiaxiang Power Plant  —   94.29   95.73   —   59.74   60.58 
Jining Co-generation  —   91.48   92.50   —   71.87   70.23 
Zhongtai Power Plant  —   93.83   92.53   —   31.46   45.39 
Henan Province
                        
Qinbei
  96.69
   88.99   92.80   55.06
   39.29   48.44 
Luoyang Cogeneration Power Plant  92.71
   97.26   95.89   46.20
   41.37   51.38 
Luoyang Yangguang Power Plant  100.00
   97.62   99.93   67.70
   24.91   16.32 
Mianchi Co-generation
  100.00   100   91.10   59.04
   40.3   50.19 
Jiangsu Province
                        
Nantong
  91.37   92.78   91.64   52.99   49.91   46.89 
Nanjing
  96.92   92.89   93.84   57.24   49.15   48.48 


39

Coal-fired Power Plant Availability factor (%)  Capacity factor (%) 
  2016  2017  2018  2016  2017  2018 
Taicang
  99.84   98.9   97.35   71.16   68.49   59.12 
Huaiyin  89.66   93.76   95.13   48.04   43.51   40.73 
Jinling Coal-fired
  93.85   88.3   95.24   70.19   60.92   58.32 
Suzhou Co-generation
  96.41   94.77   98.41   74.35   73.37   71.00 
Shanghai Municipality
                        
Shidongkou I
  99.86   90.97   95.94   43.53   46.51   41.94 
Shidongkou II  92.81   93.77   93.23   55.07   54.74   52.31 
Zhejiang Province
                        
Changxing
  96.5   97.21   97.39   49.18   56.72   55.57 
Yuhuan
  93.64   94.61   95.35   55.58   58.6   56.88 
Chongqing Municipality
                        
Luohuang  95.58   87.25   91.26   35.16   34.13   37.33 
Hunan Province
                        
Yueyang  99.71   98.24   95.76   33.56   42.63   47.51 
Hubei Province
                        
Wuhan Power  94.54   96.8   92.27   46.84   46.06   51.43 
Jingmen Thermal Power  97.86   98.05   97.67   41.39   43.53   49.54 
Yingcheng Thermal Power  90.80   99.97   98.87   44.30   52.56   60.53 
Jiangxi Province
                        
Jinggangshan  92.19   94.73   92.20   49.55   58.65   58.47 
Ruijin Power  92.43   91.28   92.66   49.77   56.82   59.41 
Anyuan Power Plant  88.6   83.62   94.45   55.29   60.24   62.64 
Anhui Province
                        
Chaohu Power  86.29   99.66   94.71   56.42   54.04   52.46 
Fujian Province
                        
Fuzhou  99.98   95.46   94.39   36.05   47.26   53.52 
Guangdong Province
                        
Shantou  97.91   94.32   96.25   43.39   49.98   57.03 
Haimen  94.41   93.93   95.73   38.88   54.66   54.93 
Yunnan Province
                        
Diandong  98.82   98.34   98.36   15.73   15.29   17.17 
Yuwang  100   99.59   99.98   2.54   0.54   2.61 
Hainan Province
                        
Haikou  91.15   95.4   95.24   60.46   57.21   59.72 
Dongfang  94.33   99.53   95.14   60.23   64.6   63.10 
_____________________________

Coal-fired Power Plant Availability factor (%)  Capacity factor (%) 
  2014  2015  2016  2014  2015  2016 
Hebei Province
                  
Shang’an  98.15   95.50   93.18   63.52   66.74   57.50 
Gansu Province
                        
Pingliang  94.63   88.83   96.3   51.85   27.76   39.77 
Beijing Municipality
                        
Beijing  94.48   85.60   92.79   54.79   53.01   45.89 
Tianjin Municipality
                        
Yangliuqing  93.9   95.02   96.78   62.95   54.02   53.38 
Shanxi Province
                        
Yushe  92.53   93.18   94.77   61.22   53.32   53.01 
Zuoquan  92.93   90.93   87.61   50.88   47.71   46.68 
Shandong Province
                        
Dezhou  97.01   97.01   93.96   64.46   60.83   57.97 
Jining  92.03   92.03   91.35   55.56   57.58   59.22 
Weihai  95.87   97.04   93.47   65.83   64.03   65.83 
Xindian  87.15   89.12   90.10   62.83   60.08   63.07 
Rizhao II  91.27   92.22   94.08   64.23   66.91   66.34 
Zhanhua Co-generation  95.63   94.33   97.32   57.92   51.98   55.27 
Henan Province
                        
Qinbei  92.85   97.18   96.69   50.92   46.22   55.06 
Luoyang Cogeneration Power Plant  -   -   92.71   -   -   46.20 
Luoyang Yangguang Power Plant  -   -   100   -   -   67.70 
Mianchi Co-generation  -   -   100   -   -   59.04 
Jiangsu Province
                        
Nantong  90.6   91.41   
91.37
   55.67   50.15   52.99 
Nanjing  94.45   93.54   
96.92
   62.52   47.59   57.24 
Taicang  99.99   94.39   
99.84
   65.2   60.57   71.16 
Huaiyin  91.4   91.40   
89.66
   58.26   50.28   48.04 
Jinling Coal-fired  88.66   89.82   
93.85
   64.1   64.99   70.19 
Suzhou Co-generation  94.27   98.42   
96.41
   76.71   75.10   74.35 
Shanghai Municipality
                        
Shidongkou I  98.53   95.43   99.86   52.96   44.44   43.53 
Shidongkou II  90.15   92.57   92.81   50.71   51.15   55.07 
Zhejiang Province
                        
Changxing  93.9   97.69   96.5   29.82   47.03   49.18 
Yuhuan  95.45   95.53   93.64   63.22   55.43   55.58 
Chongqing Municipality
                        
Luohuang  94.84   94.44   95.58   48.21   42.23   35.16 
Hunan Province
                        
Yueyang  99.97   98.94   99.71   39.27   35.04   33.56 
Hubei Province
                        
Wuhan Power  92.17   95.36   94.54   53.06   46.53   46.84 
Jingmen Thermal Power  100   98.09   97.86   34.28   26.80   41.39 
Yingcheng Thermal Power  -   100   90.80   -   33.52   44.30 
40
Coal-fired Power Plant Availability factor (%)  Capacity factor (%) 
  2014  2015  2016  2014  2015  2016 
Jiangxi Province
                  
Jinggangshan  95.03   92.92   92.19   50.5   53.47   49.55 
Ruijin Power  -   -   92.43   -   -   49.77 
Pingxiang  -   -   88.6   -   -   55.29 
Anhui Province
                        
Chaohu Power  95.03   95.50   86.29   50.5   55.62   56.42 
Fujian Province
                        
Fuzhou  94.53   91.62   99.98   58.66   45.72   36.05 
Guangdong Province
                        
Shantou  96.55   98.42   97.91   50.75   43.29   43.39 
Haimen  96.99   96.53   94.41   53.09   45.98   38.88 
Yunnan Province
                        
Diandong  94.92   98.68   98.82   28.32   19.00   15.73 
Yuwang  95.36   96.79   100   34.88   15.07   2.54 
Hainan Province
                        
Haikou  95.36   96.02   91.15   34.88   87.47   60.46 
Dongfang  94.92   92.73   94.33   28.32   74.05   60.23 
___________________         
The details of our operating power plants, construction projects and related projects as of MarchDecember 31, 20172018 are described below.
Power Plants in Heilongjiang Province
Xinhua Power Plant
Huaneng Xinhua Power Plant ("Xinhua Power Plant") is located in the city of Daqing in Heilongjiang Province. Xinhua Power Plant, including Phase I and Phase II, has an installed capacity of 530 MW and consists of one 200 MW coal-fired generating unit and one 330 MW coal-fired generating unit and which commenced operations in 1979 and 2005 respectively. We hold 70% equity interest in Xinhua Power Plant.
41
The coal supply for Xinhua Power Plant is mainly obtained from Inner Mongolia Autonomous Region. Xinhua Power Plant typically stores 120,000 tons of coal on site. In 2018, Xinhua Power Plant obtained 93.1%87.3% of its

40
total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Xinhua Power Plant in 20162018 was RMB269.07 (2015: RMB291.78)RMB357.33 (2017: RMB326.06) per ton.
Xinhua Power Plant sells its electricity to Heilongjiang Electric Power Company.
Hegang Power Plant
Huaneng Hegang Power Plant ("Hegang Power Plant") is located in the city of Hegang in Heilongjiang Province. Hegang Power Plant, including Phases I to III, has an installed capacity of 1,200 MW and consists of two 300 MW coal-fired generating unit and one 600 MW coal-fired generating unit and which commenced operations in 1998, 1999 and 2007 respectively. We hold 64% equity interest in XinhuaHegang Power Plant.
The coal supply for Hegang Power Plant is mainly obtained from the city of Hegang. Hegang Power Plant typically stores 120,000 tons of coal on site. In 2018, Hegang Power Plant obtained 62.5%65.7% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Hegang Power Plant in 20162018 was RMB317.73 (2015: RMB310.49)RMB428.66 (2017: RMB406.37) per ton.
Hegang Power Plant sells its electricity to Heilongjiang Electric Power Company.
Daqing Co-generation
Huaneng Daqing Co-generation Power Plant ("Daqing Co-generation") is located in the city of Daqing in Heilongjiang Province. Daqing Co-generation, including Phase I and Phase II, has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operations in 2003. We hold 100% equity interest in Daqing Co-generation.
The coal supply for Daqing Co-generation is mainly obtained from Inner Mongolia Autonomous Region. Daqing Co-generation typically stores 80,000 tons of coal on site. In 2018, Daqing Co-generation obtained 88.9%82.6% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Daqing Co-generation in 20162018 was RMB263.84 (2015: RMB288.24)RMB355.80 (2017: RMB323.56) per ton.
Daqing Co-generation sells its electricity to Heilongjiang Electric Power Company.
Yichun Co-generation
Huaneng Yichun Co-generation Power Plant ("Yichun Co-generation") is located in the city of Yichun in Heilongjiang Province. Yichun Co-generation, including Phase I and Phase II, has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operations in 2015. We hold 100% equity interest in Yichun Co-generation.
The coal supply for Yichun Co-generation is mainly obtained from the city of Hegang. DaqingYichun Co-generation typically stores 80,000 tons of coal on site. In 2018, Yichun Co-generation obtained 93.3%65.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yichun Co-generation in 20162018 was RMB334.03 (2015: RMB334.78)RMB435.56 (2017: RMB416.97) per ton.
Yichun Co-generation sells its electricity to Heilongjiang Electric Power Company.
Sanjiangkou Wind Power
Huaneng Shanjiangkou Wind Power Plant ("Sanjiangkou Jiangsheng Wind Power") is located in the city of Jiamusi in Heilongjiang Province. The installed capacity of Sanjiangkou Wind Power Plant is 99 MW and consists of 66 turbines. It commenced operation in February 2010. We hold 82.85% equity interest in Sanjiangkou Wind Power Plant.
42
Power.
Sanjiangkou Wind Power sells its electricity to Heilongjiang Electric Power Company.

41
Linjiang Jiangsheng Wind Power
Linjiang Jiangsheng Wind Power Plant ("Linjiang Jiangsheng Wind Power") is located in the city of Jiamusi in Heilongjiang Province. The installed capacity of Linjiang Jiangsheng Wind Power Plant is 99 MW and consists of 66 turbines. It commenced operation in October 2015. We hold 82.85% equity interest in Linjiang Jiangsheng Wind Power Plant.Power.
Linjiang Jiangsheng Wind Power sells its electricity to Heilongjiang Electric Power Company.
Daqing Heping Aobao Wind Power
Daqing Heping Aobao Wind Power Plant ("Daqing Heping Aobao Wind Power") is located in the city of Jiamusi in Heilongjiang Province. Phase I of the Daqing Heping Aobao Wind Power commenced operation in December 2011, with an installed capacity of 96 MW, consisting of 32 wind power turbines of 3 MW each. Phase II of the Daqing Heping Aobao Wind Power commenced operation in May 2012, with an installed capacity of 96 MW, consisting of 32 wind power turbines of 3 MW each. Phase III of the Daqing Heping Aobao Wind Power commenced operation in December, with an installed capacity of 96 MW, consisting of 32 wind power turbines of 3 MW each. We hold 100% of the equity interest in Daqing Heping Aobao Wind Power.
Daqing Heping Aobao Wind Power sells its electricity to Heilongjiang Electric Power Company.
Zhaodong Dechang Photovoltaic
Zhaodong Dechang 20 MW Photovoltaic Power Plant ("Zhaodong Dechang Photovoltaic") is located in the city of Zhaodong in Heilongjiang Province. Zhaodong Dechang Photovoltaic commenced operation in December 2017, with an installed capacity of 20 MW. We hold 100% of the equity interest in Zhaodong Dechang Photovoltaic.
Zhaodong Dechang Photovoltaic sells its electricity to Heilongjiang Electric Power Company.
Shuangyu Photovoltaic
Daqing Huaneng Shuangyu Solar Power Plant (“Shuangyu Photovoltaic”), in which we hold 100% equity interest, consists of Xinhua Photovoltaic, Donghai Photovoltaic and Shuangyu Photovoltaic. Xinhua Photovoltaic with an installed capacity of 20 MW, commenced commercial operation in June 2018. Donghai Photovoltaic and Shuangyu Photovoltaic, both with an installed capacity of 20 MW, commenced commercial operation in July 2018. Daqing Huaneng Shuangyu, Donghai Photovoltaic and Shuangyu Photovoltaic are located in Daqing city, Heilongjiang.
Power Plants in Jilin Province
Jiutai Power Plant
Huaneng Jiutai Power Plant ("Jiutai Power Plant") is located in the city of Changchun in Jilin Province. Jiutai Power Plant, including Phase I and Phase II, has an installed capacity of 1,340 MW and consists of two 670 MW coal-fired generating units which commenced operations in 2009. We hold 100% equity interest in Jiutai Power Plant.
The coal supply for Jiutai Power Plant is mainly obtained from Inner Mongolia Autonomous Region. Jiutai Power Plant typically stores 120,000 tons of coal on site. In 2018, Jiutai Power Plant obtained 63%74.5% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jiutai Power Plant in 20162018 was RMB260.52 (2015: RMB282.47)RMB406.78 (2017: RMB371.93) per ton.
Jiutai Power Plant sells its electricity to Jilin Electric Power Company.
Changchun Co-generation
Huaneng Changchun Co-generation Power Plant ("Changchun Co-generation") is located in the city of Changchun in Jilin Province. Changchun Co-generation, including Phase I and Phase II, has an installed capacity of

42
700 MW and consists of two 350 MW coal-fired generating units which commenced operations in 2009. We hold 100% equity interest in Changchun Co-generation.
The coal supply for Changchun Co-generation is mainly obtained from Inner Mongolia Autonomous Region. Changchun Co-generation typically stores 160,000 tons of coal on site. In 2018, Changchun Co-generation obtained 88%81.4% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Changchun Co-generation in 20162018 was RMB288.58 (2015: RMB299.64)RMB392.76 (2017: RMB349.00) per ton.
Changchun Co-generation sells its electricity to Jilin Electric Power Company.
Nongan Biomass
43
Huaneng Nongan Biomass Power Plant ("Nongan Biomass") is located in the city of Changchun in Jilin Province. The installed capacity of Nongan Biomass is 25 MW and consists of one 25 MW generating unit, which commenced operation in December 2011. We hold 100% equity interest in Nongan Biomass.
Nongan Biomass also uses coal to meet part of its fuel needs. Nongan Biomass typically stores 40,000 tons of coal on site. The average coal purchase price for Nongan Biomass in 20162018 was RMB286.16 (2015: RMB292.82)RMB254.88 (2017: RMB303.11 ) per ton.
Nongan Biomass sells its electricity to Jilin Electric Power Company.
Linjiang Jubao Hydropower
Huaneng Linjiang Jubao Hydropower Station ("Linjiang Jubao Hydropower") is located in the city of Baishan of Jilin Province. Linjiang Jubao Hydropower consists of four 20 MW hydraulic generating units with a total installed capacity of 80 MW. In December 2011, Unit I of Linjiang Jubao Hydropower with an installed capacity of 20 MW passed a trial run. Unit I and Unit II of Linjiang Jubao Hydropower with an installed capacity of 20 MW each commenced operation in December 2011 and May 2012, respectively. Unit III and Unit IV of Linjiang Jubao Hydropower with an installed capacity of 20 MW commenced operation in May and August 2012, respectively. We hold 100% equity interest in Linjiang Jubao Hydropower.
Linjiang Jubao Hydropower sells its electricity to Jilin Electric Power Company.
Zhenlai Wind Power
Huaneng Zhenlai Mali Wind Power Plant ("Zhenlai Wind Power") is located in the city of Baicheng in Jilin Province. Phase I of the Zhenlai Wind Power commenced operation in June 2009, with an installed capacity of 49.5 MW, consisting of 33 wind power turbines of 1.5 MW each. Phase II of the Zhenlai Wind Power commenced operation in December 2011, with an installed capacity of 49.5 MW, consisting of 33 wind power turbines of 1.5 MW each. We hold 100% of the equity interest in Zhenlai Wind Power.
Zhenlai Wind Power sells its electricity to Jilin Electric Power Company.
Siping Wind Power
Huaneng Siping Wind Power Plant ("Siping Wind Power") is located in the city of Siping in Jilin Province. Phase I of the Siping Wind Power commenced operation in October 2010, with an installed capacity of 75 MW, consisting of 50 wind power turbines of 1.5 MW each. Phase II of the Siping Wind Power commenced operation in November 2010, with an installed capacity of 50 MW, consisting of 25 wind power turbines of 2 MW each. Phase III of the Siping Wind Power commenced operation in December 2010, with an installed capacity of 75 MW, consisting of 50 wind power turbines of 1.5 MW each. We hold 100% of the equity interest in Siping Wind Power.
Siping Wind Power sells its electricity to Jilin Electric Power Company.

43
Tongyu Tuanjie Wind Power
Huaneng Jilin Tongyu Tuanjie Wind Power Plant ("Tongyu Tuanjie Wind Power") is located in the city of Baicheng in Jilin Province. Tongyu Tuanjie Wind Power commenced operation in December 2015, with an installed capacity of 148 MW, consisting of 74 wind power turbines of 2 MW each. We hold 100% of the equity interest in Tongyu Tuanjie Wind Power.
Tongyu Tuanjie Wind Power sells its electricity to Jilin Electric Power Company.
Linjiang Jubao Photovoltaic
Linjiang Jubao 15 MW Photovoltaic Power Plant ("Linjiang Jubao Photovoltaic") is located in the city of Linjiang in Jilin Province. Linjiang Jubao Photovoltaic commenced operation in June 2017, with an installed capacity of 15 MW. We hold 100% of the equity interest in Linjiang Jubao Photovoltaic.
Linjiang Jubao Photovoltaic sells its electricity to Jilin Electric Power Company.
Zhenlai Photovoltaic
Zhenlai Wind Power Photovoltaic Power Plant (“Zhenlai Photovoltaic”) is located in Baicheng city in Jilin Province. Zhenlai Photovoltaic commenced operation in June 2018, with an installed capacity of 20 MW. We hold 50% of the equity interest in Zhenlai Photovoltaic.
Power Plants in Liaoning Province
Dalian Power Plant
44
Huaneng Dalian Power Plant ("Dalian Power Plant") is located on the outskirts of Dalian, on the coast of Bohai Bay. Dalian Power Plant, including Phase I and Phase II, has an installed capacity of 1,400 MW and consists of four 350 MW coal-fired generating units which commenced operations in 1988 and 1999 respectively. We hold 100% equity interest in Dalian Power Plant.
The coal supply for Dalian Power Plant is obtained from several coal producers located mostly in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and shipped by special 27,000 ton automatic unloading ships to the wharf at the Dalian Power Plant. The wharf is owned and maintained by the Dalian Port Authority and is capable of handling 30,000 ton vessels. Dalian Power Plant typically stores 200,000 tons of coal on site.
In 2016,2018, Dalian Power Plant obtained 98%42.2% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Dalian Power Plant in 20162018 was RMB461.63 (2015: RMB417.54)RMB550.27 (2017: RMB549.27) per ton.
Dalian Power Plant sells its electricity to Liaoning Electric Power Company.
Dandong Power Plant
Huaneng Dandong Power Plant ("Dandong Power Plant") is located on the outskirts of the city of Dandong in Liaoning. Dandong Power Plant had originally been developed by HIPDC which, pursuant to the Reorganization Agreement, transferred all its rights and interests therein to us effective December 31, 1994. In March 1997, we began the construction of Dandong Power Plant, which comprises two 350 MW coal-fired generating units. We hold 100% equity interest in Dandong Power Plant.
The coal supply for Dandong Power Plant is obtained from several coal producers in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and shipped by barge to the Dandong port in Dandong, where it is unloaded and transported to Dandong Power Plant using special coal handling facilities. The wharf is owned and maintained by Dandong Power Plant and is capable of handling 28,000 ton vessels. Dandong Power Plant typically stores 220,000 tons of coal on site.

44
In 2016,2018, Dandong Power Plant obtained 25%27.6% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Dandong Power Plant in 20162018 was RMB417.25 (2015: RMB396.52)RMB512.18 (2017: RMB528.38) per ton.
Dandong Power Plant sells its electricity to Liaoning Electric Power Company.
Yingkou Power Plant
Huaneng Yingkou Power Plant ("Yingkou Power Plant") is located in Yingkou City in Liaoning Province. Yingkou Power Plant Phase I has an installed capacity of 640 MW and consists of two 320 MW supercritical coal-fired generating units which commenced operations in January and December 1996, respectively. Yingkou Power Plant Phase II has an installed capacity of 1,200MW and consists of two 600 MW coal-fired generating units which commenced operations in August and October 2007, respectively. We hold 100% equity interest in Yingkou Power Plant.
The coal supply for Yingkou Power Plant is mainly obtained from Shanxi Province. Yingkou Power Plant typically stores 400,000 tons of coal on site. In 2016,2018, Yingkou Power Plant obtained 35%17.5% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yingkou Power Plant in 20162018 was RMB453.18 (2015: RMB427.85)RMB520.61 (2017: RMB540.89) per ton.
Yingkou Power Plant sells its electricity to Liaoning Electric Power Company.
Yingkou Co-generation
45
Huaneng Yingkou Co-generation Power Plant ("Yingkou Co-generation") is located in Yingkou City in Liaoning Province. Yingkou Co¬-generation Power PlantCo-generation has an installed capacity of 660 MW and consists of two 330 MW generating units which commenced operation in December 2009. We hold 100% equity interest in Yingkou Co-generation Power Plant.Co-generation.
The coal supply for Yingkou Co-generation Power Plant is mainly obtained from Inner Mongolia Autonomous Region. Yingkou Co-generation Power Plant typically stores 140,000 tons of coal on site. In 2016,2018, Yingkou Co-generation Power Plant obtained 100%96.5% of its total consumption of coal from annual contracts. The average coal purchase price for Yingkou Co-generation Power Plant in 20162018 was RMB327.68 (2015: RMB384.98)RMB431.29 (2017: RMB411.04) per ton.
Yingkou Co-generation Power Plant sells its electricity to Liaoning Electric Power Company.
Wafangdian Wind Power
Dalian Wafangdian Wind Power Plant ("Wafangdian Wind Power") is located in Dalian City in Liaoning Province. The installed capacity of phase I of Wafangdian Wind Power Plant is 48 MW and consists of 24 turbines. It commenced operation in June 2011. We hold 100% equity interest in Wafangdian Wind Power Plant.Power.
Wafangdian Wind Power sells its electricity to Liaoning Electric Power Company.
Suzihe Hydropower
Liaoning Suzihe Hydropower Plant ("Suzihe Hydropower") is located in Liaoning Province. The installed capacity of Suzihe Hydropower Plant is 37.5 MW and consists of three 12.5 MW generating units. Unit I (12.5 MW) of Suzihe Hydropower commenced operation in August 2012. We hold 100% equity interest in Suzihe Hydropower.
Changtu Wind Power
Huaneng Liaoning Changtu Wind Power Plant ("Changtu Wind Power") is located in Liaoning Province. Phase I of the Changtu Wind Power commenced operation in November 2012, with an installed capacity of 49.5 MW, consisting of 33 wind power turbines of 1.5 MW each. Phase II of the Changtu Wind Power commenced operation in October 2014, , with an installed capacity of 48 MW, consisting of 24 wind power turbines of 2 MW each. We hold 100% of the equity interest in Changtu Wind Power.

45
Dandong Photovoltaic
Dandong 10 MW Photovoltaic Power Plant ("Dandong Photovoltaic") is located in Liaoning Province. Dandong Photovoltaic commenced operation in May 2016, with an installed capacity of 10 MW. We hold 100% of the equity interest in Dandong Photovoltaic.
Dandong Photovoltaic sells its electricity to Liaoning Electric Power Company.
Yingkou Co-generation Photovoltaic
Yingkou Co-generation 10 MW Photovoltaic Power Plant ("Yingkou Co-generation Photovoltaic") is located in Liaoning Province. Yingkou Co-generation Photovoltaic commenced operation in June 2016, with an installed capacity of 10 MW. We hold 100% of the equity interest in Yingkou Co-generation Photovoltaic.
Yingkou Co-generation Photovoltaic sells its electricity to Liaoning Electric Power Company.
Construction Project in Liaoning Province
Yingkou Xianrendao Co-generation Power Project. In December 2013, the project of
Yingkou Xianrendao Co-generation Power Plant was approved by("Yingkou Xianrendao Co-generation Power") is located in the Development and Reform Commissioncity of Yingkou of Liaoning Province. We
46
hold 100% equity interestProvinces. Yingkou Xianrenao Co-generation Power commenced operation in this project. The project is planned to haveMarch 2017, with two sets of high temperature back-pressure turbo-generatinggenerating units of 50 MW each. The first set commenced operation in March 2017.
Dalian Second Cogeneration Power Plant project. In October 2014, the project of Dalian Number 2 Power Plant was approved by the Development and Reform Commission of Liaoning Province. We hold 100% equity interest in this project.Yingkou Xianrendao Co-generation Power. In 2018, Yingkou Xianrendao Co-generation Power obtained 65.5% of its total consumption of coal from annual contracts. The projectaverage coal purchase price for Yingkou Xianrendao Co-generation Power in 2018 was RMB459.81 (2017: RMB443.00) per ton.
Yingkou Xianrendao Co-generation Power sells its electricity to Liaoning Electric Power Company.
Jianchang Bashihan Photovoltaic
Jianchang Bashihan 20 MW Photovoltaic Power Plant ("Jianchang Bashihan Photovoltaic") is plannedlocated in the city of Huludao of Liaoning Province. Jianchang Bashihan Photovoltaic commenced operation in August 2017, with an installed capacity of 22.03 MW. We hold 100% of the equity interest in Jianchang Bashihan Photovoltaic.
Jianchang Bashihan Photovoltaic sells its electricity to have two setsLiaoning Electric Power Company.
Jianchang Bashihan Photovoltaic Phase II
Jianchang Bashihan 20 MW Photovoltaic Phase II Power Plant ("Jianchang Bashihan Photovoltaic Phase II") is located in the city of high temperature back-pressure turbo-generating unitsHuludao of 50Liaoning Province. Jianchang Bashihan Photovoltaic Phase II commenced operation in August 2017, with an installed capacity of 22.03 MW. We hold 100% of the equity interest in Jianchang Bashihan Photovoltaic Phase II.
Jianchang Bashihan Photovoltaic Phase II sells its electricity to Liaoning Electric Power Company.
Xiao Deyingzi Photovoltaic
Xiao Deyingzi 15 MW each.Photovoltaic Power Plant ("Xiao Deyingzi Photovoltaic") is located in the city of Huludao of Liaoning Province. Xiao Deyingzi Photovoltaic commenced operation in August 2017, with an installed capacity of 15.56 MW. We hold 100% of the equity interest in Xiao Deyingzi Photovoltaic.
Xiao Deyingzi Photovoltaic sells its electricity to Liaoning Electric Power Company.
Chaoyang Heiniuyingzi Photovoltaic
Chaoyang Heiniuyingzi 17 MW Photovoltaic Power Plant ("Chaoyang Heiniuyingzi Photovoltaic") is located in the city of Chaoyang of Liaoning Province. Chaoyang Heiniuyingzi Photovoltaic commenced operation in August 2017, with an installed capacity of 18.79 MW. We hold 100% of the equity interest in Chaoyang Heiniuyingzi Photovoltaic.

46
Chaoyang Heiniuyingzi Photovoltaic sells its electricity to Liaoning Electric Power Company.
Power Plant in Inner Mongolia Autonomous Region
Huade Wind Power
Huaneng Huade Wind Power Plant ("Huade Wind Power") is located in Huade, Inner Mongolia Autonomous Region. Phase I of Huade Wind Power has an installed capacity of 49.5 MW and consists of 33 wind power turbines which commenced operation in 2009. Phase II of Huade Wind Power has an installed capacity of 49.5 MW and consists of 33 wind power turbines which commenced operation in June 2011. We hold 100% equity interest in Huade Wind Power Plant.Power.
Huade Wind Power sells its electricity to Inner Mongolia Power (Group) Co., Ltd.
Power Plants in Hebei Province
Shang'an Power Plant
Huaneng Shang'an Power Plant ("Shang'an Power Plant") is located on the outskirts of Shijiazhuang. Shang'an Power Plant has been developed in three separate expansion phases. The Shang'an Power Plant Phase I has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operations in 1990. Shang'an Power Plant Phase II shares with the Shang'an Power Plant Phase I certain facilities, such as coal storage facilities and effluence pipes, which have been built to accommodate the requirements of plant expansions. The Shang'an Power Plant Phase II utilizes two 330 MW coal-fired generating units, which commenced operation in 1997. The Shang'an Power Plant Phase III has an installed capacity of 1,200 MW and consists of two 600 MW supercritical coal-fired generating units which commenced operations in July and August 2008, respectively. Unit 5 of Shang'an Power Plant is the first 600MW supercritical air-cooling unit which commenced operation in the PRC. We hold 100% equity interest in Shang'an Power Plant.
The coal supply for Shang'an Power Plant is obtained from numerous coal producers in Central Shanxi Province, which is approximately 64 kilometers from Shang'an Power Plant. The coal is transported by rail from the mines to the Shang'an Power Plant. We own and maintain the coal unloading facilities which are capable of unloading 10,000 tons of coal per day. Shang'an Power Plant typically stores 300,000 tons of coal on site.
In 2016,2018, Shang'an Power Plant obtained 86%82.2% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Shang'an Power Plant in 20162018 was RMB337.33 (2015: RMB319.33)RMB491.08 (2017: RMB486.86) per ton.
Shang'an Power Plant sells its electricity to Hebei Electric Power Company.
Kangbao Wind Power
Huaneng Kangbao Wind Power Plant ("Kangbao Wind Power") consists of 33 wind power turbines with a total installed capacity of 49.5 MW. In January 2011, the Phase I of Kangbao Wind Power with a total generation capacity of 49.5MW completed the trial run. We hold 100% equity interest in Kangbao Wind Power.
Kangbao Wind Power sells its electricity to Hebei Electric Power Company.
47
Kangbao Xitan Photovoltaic
Kangbao Xitan Photovoltaic ("Kangbao Xitan Photovoltaic") is located in Kangbao, Zhangjiakou, Hebei. Kangbao Xitan Photovoltaic commenced operation in June 2016, with an installed capacity of 20 MW. We hold 100% equity interest in Kangbao Xitan Photovoltaic.
Kangbao Xitan Photovoltaic sells its electricity to Hebei Electric Power Company.
Construction Project in Hebei Province

47
Zhuolu Dabao Wind Power.  In September 2014, the project of Power
Zhuolu Dabao Wind Power was approved by the Development and Reform CommissionPlant ("Zhuolu Dabao Wind Power") consists of Hebei Province. We hold 100% equity interest in this project. The project is planned to have an24 wind power turbines with a total installed capacity of 48 MW, consisting of 24 wind power turbines of 22MW each. Zhuolu Dabao Wind Power commence operation in March 2017. We hold 100% equity interest in Kangbao Wind Power.
Zhuolu Dabao Wind Power sells its electricity to Hebei Electric Power Company.
Shang'an Dianchanghuichang Photovoltaic
Shang’an Dianchanhuichang 18 MW each.Photovoltaic Power Plant ("Shang'an Dianchanhuichang Photovoltaic") is located in the city of Shijiazhuang of Hebei Province. Shang'an Dianchanghuichang Photovoltaic commenced operation in December 2017, with an installed capacity of 17 MW. We hold 100% of the equity interest in Shang'an Dianchanhuichang Photovoltaic.
Shang'an Dianchanghuichang Photovoltaic sells its electricity to Hebei Electric Power Company.
Power Plant in Gansu Province
Pingliang Power Plant
Huaneng Pingliang Power Plant ("Pingliang Power Plant") is located in Pingliang City of Gansu Province. Pingliang Power Plant consists of three 325 MW and one 330 MW coal-fired generating units which commenced operation in 2000, 2001 and June and November 2003 respectively. The installed capacity of Unit I, Unit II and Unit III of Pingliang Power Plant were expanded from 300 MW to 325 MW in January 2010, respectively. The installed capacity of Unit IV of Pingliang Power Plant was expanded from 300 MW to 330 MW in January 2011. Pingliang Power Plant Phase II consists of two 600 MW generating units with a total installed capacity of 1200 MW, which commenced operation in February 2010 and March 2010, respectively. We hold 65% equity interest in Pingliang Power Plant.
The coal supply for Pingliang Power Plant is obtained from local coal mines. Pingliang Power Plant typically stores 230,000 tons of coal on site. In 2016,2018, Pingliang Power Plant obtained 82%100.0% of its coal supplies from annual contracts and the remainder from the open market. The average coal purchase price for Pingliang Power Plant in 20162018 was RMB270.81 (2015: RMB256.44)RMB376.95 (2017: RMB356.70) per ton.
Pingliang Power Plant sells its electricity to Gansu Electric Power Company.
Jiuquan Wind Power
Jiuquan Wind Power Plant ("Jiuquan Wind Power") consists of 234 wind power turbines of 1.5 MW each and 25 wind power turbines of 2 MW each. In December 2011, all the wind power plants completed the trial run. We hold 100% equity interest in Jiuquan Wind Power.
Jiuquan Wind Power sells its electricity to Gansu Electric Power Company.
Jiuquan II Wind Power
Jiuquan II Wind Power Plant ("Jiuquan II Wind Power") is located in Gansu Province. Zone A of this plant commenced operation in December 2014, with an installed capacity of 200 MW in operating, consisting of 100 wind power turbines of 2 MW each. Zone B of this plant commenced operation in June 2015, with an installed capacity of 200 MW in operating, consisting of 100 wind power turbines of 2 MW each. We hold 100% equity interest in Jiuquan II Wind Power.
Jiuquan II Wind Power sells its electricity to Gansu Electric Power Company.
Yumen Wind Power

48
Yumen Wind Power
Yumen Wind Power Plant ("Yumen Wind Power") is located in Gansu Province. This plant commenced operation in June 2015, with an installed capacity of 148.5 MW, consisting of 67 wind power turbines of 1.5 MW each and 24 wind power turbines of 2 MW each. We hold 100% equity interest in Yumen Wind Power.
Yumen Wind Power sells its electricity to Gansu Electric Power Company.
Yigang Wind Power
Yigang Wind Power ("Yigang Wind Power") is located in Gansu Province. This plant commenced operation in December 2015, with an installed capacity of 192 MW, consisting of 96 wind power turbines of 2 MW each. We hold 100% equity interest in Yigang Wind Power.
Yigang Wind Power sells its electricity to Gansu Electric Power Company.
Power Plant in Beijing Municipality
Beijing Co-generation
Huaneng Beijing Co-generation Power Plant ("Beijing Co-generation") is located in Beijing Municipality. Beijing Co-generation has an installed capacity of 845 MW and consists of two 165 MW generating units, two 220 MW generating units and one 75 MW generating units which commenced operation in January 1998, December 1998, June 1999 and April 2004, respectively. We hold 41% equity interest in Beijing Co-generation and believe we exercise effective control over Beijing Co-generation.
The coal supply for Beijing Co-generation is mainly obtained from Inner Mongolia Autonomous Region. Beijing Co-generation typically stores 165,000 tons of coal on site. In 2016,2018, Beijing Co-generation obtained 100%83.0% of its total consumption of coal from annual contracts. The average coal purchase price for Beijing Co-generation in 20162018 was RMB434.53 (2015: RMB422.39)RMB563.24 (2017: RMB529.61) per ton.
Beijing Co-generation sells its electricity to Beijing Electric Power Company.
Beijing Co-generation CCGT
Beijing Co-generation CCGT consists of one set of "two on one" F-grade gas and steam combined cycle generating units with a power generation capacity of 923.4 MW, heat supply capacity of 650 MW and heat supply area of approximately 13,000,000 square meters. High-standard denitrification, noise reduction, water treatment and other environmental protection facilities were constructed concurrently. In December 2011, Beijing Co-generation CCGT completed its trial run. Beijing Co-generation CCGT sells its electricity to North China Electric Company.
Being the first project commencing construction among the four major co-generation centers in Beijing, Beijing Co-generation CCGT firstly introduced the most efficient world-class F-grade gas turbine in the PRC, thus setting a new record of the maximum heat supply capacity, minimum power consumption for power generation and highest annual thermal efficiency for the same type of generating units in the PRC and attaining a leading and international class design standard in the PRC.
Construction Project in Beijing MunicipalityCo-generation Phase III
Beijing Co-generation Phase III Project.  In March 2015, the projectconsists of two sets of F-grade gas and steam combined cycle generating units with a power generation capacity of 998 MW. Beijing Co-generation Phase III was approved by the Development and Reform Commission of Beijing Municipality.commence operation in November 2017. We hold 41% equity interest in this project. The project is plannedBeijing Co-generation Phase III.
Beijing Co-generation CCGT sells its electricity to have two sets of F-grade gas-steam combined-cycle generators with total capacity of 998 MW.Beijing Electric Company.

49
Power Plant in Tianjin Municipality
Yangliuqing Co-generation
49
Tianjin Huaneng Yangliuqing Co-generation Power Plant ("Yangliuqing Co-generation") is located in Tianjin Municipality. Yangliuqing Co-generation has an installed capacity of 1,200 MW and consists of four 300 MW coal-fired co-generation units which commenced operation in December 1998, September 1999, December 2006 and May 2007, respectively. We hold 55% equity interest in Yangliuqing Co-generation.
The coal supply for Yangliuqing Co-generationisCo-generation mainly obtained from Shanxi Province and Inner Mongolia Autonomous Region. Yangliuqing Co-generation typically stores 300,000 tons of coal on site. In 2016,2018, Yangliuqing Co-generation obtained 62%67.7% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yangliuqing Co-generation in 20162018 was RMB404.07 (2015: RMB369.26)RMB510.49 (2017: RMB496.91) per ton.
Yangliuqing Co-generation sells its electricity to Tianjin Electric Company.
Lingang Co-generation CCGT
Lingang Co-generation CCGT is located in Tianjin Municipality. The first set of generating units of Lingang Co-generation CCGT commenced operation in December 2014, with an installed capacity of 463 KW. We hold 100% equity interest in the Lingang Co-generation CCGT. The gas supply for Lingang Co-generation CCGT is transported through the pipeline of "Shaanxi-Gansu-Ningxia Transport Project."
Lingang Co-generation CCGT sells its electricity to Tianjin Electric Company.
Chenxi Photovoltaic
Chenxi 2.2 MW Photovoltaic Power Plant ("Chenxi Photovoltaic") is located in the city of Tianjin. Chengxi Photovoltaic commenced operation in June 2017, with an installed capacity of 2.2 MW. We hold 55% of the equity interest in Chenxi Photovoltaic.
Chenxi Photovoltaic sells its electricity to Tianjin Electric Power Company.
Power Plant in Shanxi Province
Yushe Power Plant
Huaneng Yushe Power Plant ("Yushe Power Plant") is located in Yushe County of Shanxi Province. Yushe Power Plant Phase I has an installed capacity of 200 MW and consists of two 100 MW coal-fired generating units which commenced operations in August and December 1994, respectively. Two 300 MW coal-fired generating units of Yushe Power Plant Phase II commenced operations in October and November 2004, respectively. Yushe Power Plant Phase I was shut down in 2011. We hold 60% equity interest in Yushe Power Plant.
The coal supply for Yushe Power Plant is obtained from several coal producers located mostly in Shanxi Province. Yushe Power Plant typically stores 500,000 tons of coal on site. In 2016,2018, Yushe Power Plant obtained approximately 17%27.7% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yushe Power Plant in 20162018 was RMB252.95 (2015: RMB194.96)RMB307.31 (2017: RMB316.51) per ton.
Yushe Power Plant sells its electricity to Shanxi Electric Power Company.
Zuoquan Power Plant
Shanxi Huaneng Zuoquan Power Plant ("Zuoquan Power Plant") is located in Zuoquan County of Shanxi Province. Zuoquan Power Plant has an installed capacity of 1,346 MW and consists of two 673 MW coal-fired generating units which commenced operations in December 2011 and January 2012, respectively. We hold 80% equity interest in Zuoquan Power Plant.

50
Zuoquan Power Plant typically stores 200,000 tons of coal on site. In 2016,2017, Zuoquan Power Plant obtained approximately 3%29.8% of its total consumption of coal from annual contracts and the remainders from the open market. The average coal purchase price for Zuoquan Power Plant in 20162018 was RMB266.31 (2015: RMB256.99)RMB316.91 (2017: RMB348.06) per ton.
Zuoquan Power Plant sells its electricity to Shanxi Electric Power Company.
Dongshan Combined Cycle Gas Turbine Power Plant
50
Dongshan Combined Cycle Gas Turbine Power Project ("Dongshan CCGT") is located at Taiyuan City of Shanxi Province. Dongshan CCGT commenced operation in October 2015 with an installed capacity of 859 KW, consisting of one 2×F Class gas-steam combined cycle co-generating unit. We hold 100% equity interest in the plant.
Dongshan CCGT sells its electricity to Shanxi Electric Power Company.
Yushe Photovoltaic
Yushe 50 MW Photovoltaic Power Plant ("Yushe Photovoltaic") is located in the city of Jinzhong of Shanxi Province. Yushe Photovoltaic commenced operation in June 2017, with an installed capacity of 50 MW. We hold 100% of the equity interest in Yushe Photovoltaic.
Yushe Photovoltaic sells its electricity to Shanxi Electric Power Company.
Yushe Fupin Photovoltaic
Yushe 10.5 MW Fupin Photovoltaic (“Yushe Fupin Photovoltaic”) is located in the city of Jinzhong of Shanxi Province. Yushe Fupin Photovoltaic commenced operation in August 2018, with an installed capacity of 10.5 MW. We hold 90% of the equity interest in Yushe Fupin Photovoltaic.
Power Plants in Shandong Province
Dezhou Power Plant
Huaneng Dezhou Power Plant ("Dezhou Power Plant") is located in Dezhou City, near the border between Shandong and Hebei Provinces, close to an industrial zone that is an important user of electric power for industrial and commercial purposes. Dezhou Power Plant is comprised of three phases, with Phase I consisting of one 320MW and one 330MW coal-fired generating units, Phase II consisting of one 330MW and one 320MW coal-fired generating units, and Phase III consisting of two 700 MW coal-fired generating units. The installed capacity of Unit IV was upgraded from 300 MW to 320 MW in January 2009. We hold 100% equity interest in Dezhou Power Plant.
Dezhou Power Plant is approximately 200 km from Taiyuan, Shanxi Province, the source of the plant's coal supply. The plant is located on the Taiyuan-Shijiazhuang-Dezhou rail line, giving it access to transportation facilities for coal. Dezhou Power Plant typically stores 400,000 tons of coal on site. In 2016,2018, Dezhou Power Plant obtained approximately 61%66.1% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Dezhou Power Plant in 20162018 was RMB387.99 (2015: RMB370.37)RMB530.44 (2017: RMB525.39) per ton. The plant is connected to the main trunk rail line at Dezhou by a dedicated 3.5 km spur line owned by us.
Dezhou Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Jining Power Plant
Huaneng Jining Power Plant ("Jining Power Plant") is located in Jining City, near the Jining load center and near numerous coal mines. Yanzhou coal mine, which is adjacent to the plant, alone has an annual production of approximately 20 million tons. Jining Power Plant typically stores 100,000 tons of coal on site.
Jining Power Plant currently consists of two coal-fired generating units, with an aggregate installed capacity of 270 MW. In addition, Jining Power Plant (Co-generation) has an installed capacity of 700 MW and

51
consists of two 350 MW generating units which commenced operation in November and December 2009, respectively. We hold 100% equity interest in Jining Power Plant.
In 2016,2018, Jining Power Plant obtained approximately 44%43.8% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jining Power Plant in 20162018 was RMB428.63 (2015: RMB370.51)RMB587.09 (2017: RMB580.38) per ton.
Jining Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Xindian Power Plant
Huaneng Xindian Power Plant ("Xindian Power Plant") is located in Zibo City of Shandong Province. Xindian Power Plant has an installed capacity of 450 MW and consists of two 225 MW coal-fired generating units which commenced operations in December 2001 and January 2002, respectively, and were shut down in September 2009. Xindian Power Plant Phase III consists of two 300 MW generating units with a total installed capacity of 600 MW, which were put into operation in September and November 2006, respectively. We hold 95% equity interest in Xindian Power Plant Phase III.
The coal supply for Xindian Power Plant is obtained from several coal producers located mostly in Shanxi Province. Xindian Power Plant typically stores 250,000 tons of coal on site. In 2016,2018, Xindian Power Plant obtained
51
7% 20.6% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Xindian Power Plant in 20162018 was RMB437.49 (2015: RMB372.93)RMB606.12 (2017: RMB608.35) per ton.
Xindian Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Furuite Rooftop Photovoltaic
Furuite 6.3MW Photovoltaic Power Plant ("Furuite Photovoltaic") is located in the city of Zibo of Shandong Province. Furuite Photovoltaic commenced its operation in June 2017 and has an installed capacity of 6.3 MW. We hold 95% equity interest in Furuite Photovoltaic.
Furuite Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Weihai Power Plant
Huaneng Weihai Power Plant ("Weihai Power Plant") is located approximately 16 km southeast of Weihai City, on the shore of the Bohai Gulf. Its location provides access to cooling water for operations and transportation of coal as well as ash and slag disposal facilities. We hold 60% equity interest in Weihai Power Plant, the remaining 40% interest of which is owned by Weihai Power Development Bureau ("WPDB").
Weihai Power Plant Phase I consists of two 125 MW generating units (Units I and II), and Phase II consists of two 320 MW generating units (Units III and IV). Unit I began commercial operation in May 1994 and was shut down in December 2008, and Unit II began commercial operation in January 1995 and was shut down in November 2008. Unit III and Unit IV commenced operation in March and November 1998, respectively. Each of the Units III and IV was upgraded from 300 MW to 320 MW in January 2009. Weihai Power Plant Phase III consists of two 680 MW generating units which commenced operations in December 2012. The coal supply for Weihai Power Plant is obtained from Shanxi Province and Inner Mongolia. Weihai Power Plant typically stores 160,000 tons of coal on site. In 2016,2018, Weihai Power Plant obtained approximately 8%72.8% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Weihai Power Plant in 20162018 was RMB478.06 (2015: RMB419.15)RMB607.62 (2017: RMB573.98) per ton.
Weihai Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Rizhao Power Plant
Huaneng Rizhao Power Plant ("Rizhao Power Plant") is located in Rizhao City of Shandong Province. Rizhao Power Plant currently has an aggregate installed capacity of 2,060 MW. Rizhao Power Plant Phase I has an

52
installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which both commenced operations in April 2000. We hold 88.8% equity interests in Phase I of Rizhao Power Plant.
We hold 100% equity interest in Phase II of Rizhao Power Plant, which commenced operation in December 2008 and consists of two 680 MW supercritical coal-fired generating units. The coal supply for Phase II of Rizhao Power Plant is obtained from Shanxi Province. Phase II of Rizhao Power Plant typically stores 217,800 tons of coal on site. In 2016,2018, Phase II of Rizhao Power Plant obtained 0%39.3% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Phase II of Rizhao Power Plant in 20162018 was RMB467.33 (2015: RMB456.98)RMB615.83 (2017: RMB601.16) per ton.
Rizhao Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Zhanhua Co-generation
Shandong Zhanhua Co-generation Limited Company ("Zhanhua Co-generation") is located in Zhanhua City of Shandong Province. Zhanhua Co-generation currently has an aggregate installed capacity of 330 MW, consisting of two generating units which commenced operations in July 2005. We hold 100% equity interest in Zhanhua Co-generation.
The coal supply for Zhanhua Co-generation is mainly obtained from Inner Mongolia Autonomous Region. Zhanhua Co-generation typically stores 90,000 tons of coal on site. In 2016,2018, Zhanhua Co-generation obtained 6%21.8% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Zhanhua Co-generation in 20162018 was RMB405.46 (2015: RMB334.29)RMB579.37 (2017: RMB563.71) per ton.
Zhanhua Co-generation sells its electricity to State Grid Shandong Electric Power Company.
52
Baiyanghe Power Plant
Huaneng Shandong Zibo Baiyanghe Power Plant ("Baiyanghe Power Plant") is located in the city of Zibo in Shandong Province. Baiyanghe Power Plant currently has an aggregate installed capacity of 890 MW. Baiyanghe Power Plant Phase I has an installed capacity of 290 MW and consists of two 145 MW coal-fired generating units which commenced operations in October 2003. Baiyanghe Power Plant Phase II has an installed capacity of 600 MW and consists of two 300 MW coal-fired generating units which commenced operations in December 2009. We hold 80% equity interests in Baiyanghe Power Plant.
The coal supply for Baiyanghe Power Plant is obtained from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Baiyanghe Power Plant typically stores 125,300 tons of coal on site. In 2016,2018, Baiyanghe Power Plant obtained 21.98%29.3% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Baiyanghe Power Plant in 20162018 was RMB425.78 (2015: RMB362.90)RMB567.90 (2017: RMB551.56) per ton.
Baiyanghe Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Jiaxiang Power Plant
Huaneng Jiaxiang Power Plant ("Jiaxiang Power Plant") is located in the city of Jining in Shandong Province. Jiaxiang Power Plant currently has an aggregate installed capacity of 660 MW which consists of two 330 MW coal-fired generating units which commenced operations in September 1999 and January 2003, respectively. We hold 40% equity interests in Jiaxiang Power Plant.
The coal supply for Jiaxiang Power Plant is obtained from several coal producers located in the Shandong Province. Jiaxiang Power Plant typically stores 115,300 tons of coal on site. In 2016,2018, Jiaxiang Power Plant obtained 97.65%96.8% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jiaxiang Power Plant in 20162018 was RMB378.87 (2015: RMB348.56)RMB524.55 (2017: RMB535.62) per ton.
Jiaxiang Power Plant sells its electricity to State Grid Shandong Electric Power Company.

53
Jining Co-generation
Huaneng Jining Co-generation Power Plant ("Jining Co-generation") is located in the city of Jining in Shandong Province. Jining Co-generation currently has an aggregate installed capacity of 60 MW which consists of two 30 MW coal-fired generating units which commenced operations in April and July 2004, respectively. We hold 40% equity interests in Jining Co-generation.
The coal supply for Jining Co-generation is obtained from several coal producers located in the Shandong Province. Jining Co-generation typically stores 10,600 tons of coal on site. In 2016,2018, Jining Co-generation obtained 67.81%100.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jining Co-generation in 20162018 was RMB353.48 (2015: RMB282.30)RMB521.34 (2017: RMB501.70) per ton.
Jining Co-generation sells its electricity to State Grid Shandong Electric Power Company.
Qufu Co-generation
Huaneng Qufu Shengcheng Co-generation Power Plant ("Qufu Co-generation") is located in the city of Jining in Shandong Province. Qufu Co-generation currently has an aggregate installed capacity of 450 MW which consists of one 225 MW coal-fired generating unit which commenced operations in February 2009 and one 225 MW coal-fired generating unit which commenced operations in September 2009. We hold 40% equity interests in Qufu Co-generation.
The coal supply for Qufu Co-generation is obtained from several coal producers located in the Shandong Province. Qufu Co-generation typically stores 34,100 tons of coal on site. In 2016,2018, Qufu Co-generation obtained
53
95.98% 100.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Qufu Co-generation in 20162018 was RMB396.87 (2015: RMB344.91)RMB536.94 (2016: RMB544.29) per ton.
Qufu Co-generation sells its electricity to State Grid Shandong Electric Power Company.
Huangtai Power Plant
Huaneng Jinan Huangtai Power Plant ("Huangtai Power Plant") is located in the city of Jinan in Shandong Province. Huangtai Power Plant currently has an aggregate installed capacity of 680 MW which consists of one 330 MW coal-fired generating unit which commenced operations in November 1987 and one 350 MW coal-fired generating unit which commenced operations in January 2011. We hold 72% equity interests in Huangtai Power Plant.
The coal supply for Huangtai Power Plant is obtained from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Huangtai Power Plant typically stores 155,700 tons of coal on site. In 2016,2018, Huangtai Power Plant obtained 33.11%35.3% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Huangtai Power Plant in 20162018 was RMB416.26 (2015: RMB366.43)RMB611.30 (2017: RMB602.21) per ton.
Huangtai Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Yantai Power Plant
Huaneng Yantai Power Plant ("Yantai Power Plant") is located in the city of Yantai in Shandong Province. Yantai Power Plant currently has an aggregate installed capacity of 590 MW which consists of one 110 MW and three 160 MW coal-fired generating units. The 110 MW unit commenced operations in April 1996, and the three 160 MW units commenced operation in October 2005, December 2005 and October 2006 respectively. We hold 80% equity interest in Yantai Power Plant.
The coal supply for Yantai Power Plant is obtained from Shanxi Province, Inner Mongolia Autonomous Region and partially imported coal. Yantai Power Plant typically stores 176,100 tons of coal on site. In 2016,2018, Yantai Power Plant obtained 63.20%82.5% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yantai Power Plant in 20162018 was RMB456.69 (2015: RMB395.46)RMB603.47 (2017: RMB561.89) per ton.

54
Yantai Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Linyi Power Plant
Huaneng Linyi Power Plant ("Linyi Power Plant") is located in the city of Linyi in Shandong Province. Linyi Power Plant currently has an aggregate installed capacity of 1,260 MW which consists of four 140 MW and two 350 MW coal-fired generating units. The 350 MW units commenced operations in December 2012 and October 2013, respectively, and the four 140 MW units commenced operation in December 1997, April 2003, September 2003 and April 2005, respectively. We hold 60% equity interest in Linyi Power Plant.
The coal supply for Linyi Power Plant is obtained from from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Linyi Power Plant typically stores 249,000 tons of coal on site. In 2016,2018, Linyi Power Plant obtained all29.6% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Linyi Power Plant in 20162018 was RMB490.55 (2015: RMB416.64)RMB649.38 (2017: RMB639.79) per ton.
Linyi Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Jining Yunhe Power Plant
54
Huaneng Jining Yunhe Power Plant ("Jining Yunhe Power Plant") is located in the city of Jining in Shandong Province. Jining Yunhe Power Plant currently has an aggregate installed capacity of 1,240 MW which consists of four 145 MW and two 330 MW coal-fired generating units. The 330 MW units commenced operations in March and September 2006, respectively, and the four 145 MW units commenced operation in July 2000, November 2000, September 2003 and February 2004, respectively. We hold 78.68% equity interest in Jining Yunhe Power Plant.
The coal supply for Jining Yunhe Power Plant is obtained from from several coal producers located in the Shandong Province. Jining Yunhe Power Plant typically stores 50,900 tons of coal on site. In 2016,2017, Jining Yunhe Power Plant obtained 86.32%84.8% of its total consumption of coal from annual contracts and the remainder from the open market from the open market. The average coal purchase price for Jining Yunhe Power Plant in 20162018 was RMB413.60 (2015: RMB353.08)RMB555.42 (2017: RMB556.80) per ton.
Jining Yunhe Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Liaocheng Co-generation
Huaneng Liaocheng Co-generation Power Plant ("Liaocheng Co-generation") is located in the city of Liaocheng in Shandong Province. Liaocheng Co-generation currently has an aggregate installed capacity of 660 MW which consists of two 330 MW coal-fired generating unit which commenced operations in January and September 2006, respectively. We hold 60% equity interests in Liaocheng Co-generation.
The coal supply for Liaocheng Co-generation is obtained from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Liaogcheng Co-generation typically stores 141,300 tons of coal on site. In 2016,2018, Liaogcheng Co-generation obtained 14.13%21.7% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Liaogcheng Co-generation in 20162018 was RMB405.01 (2015: RMB355.97)RMB568.97 (2017: RMB561.17) per ton.
Liaogcheng Co-generation sells its electricity to State Grid Shandong Electric Power Company.
TaianZhongtai Power Plant
Huaneng Taian Zhongtai Power Plant ("TaianZhongtai Power Plant") is located in the city of Taian in Shandong Province. Taian Power Plant currently has an aggregate installed capacity of 300 MW which consists of two 150 MW coal-fired generating units, which commenced operations in May and December 2007, respectively. We hold 80% equity interest in Taian Power Plant.

55
The coal supply for TaianZhongtai Power Plant is obtained from from several coal producers located in the Shandong and Shanxi. TaianZhongtai Power Plant typically stores103,600stores 103,600 tons of coal on site. In 2016, Taian2018, Zhongtai Power Plant obtained 27.66%30.3% of its total consumption of coal from annual contracts and the remainder from the open market from the open market. The average coal purchase price for TaianZhongtai Power Plant in 20162018 was RMB347.60 (2015: RMB283.63)RMB454.71 (2017: RMB435.19) per ton.
TaianZhongtai Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Laiwu Power Plant
Huaneng Laiwu Power Plant ("Laiwu Power Plant") is located in the city of Laiwu in Shandong Province. Laiwu Power Plant currently has an aggregate installed capacity of 2,000 MW which consists of two 1,000 MW coal-fired generating units, which commenced operations in December 2015 and November 2016, respectively. We hold 64% equity interest in Laiwu Power Plant.
The coal supply for Laiwu Power Plant is obtained from from several coal producers located in the provinces of Shandong, Shanxi, Shaanxi and Inner Mongolia Autonomous Region. Laiwu Power Plant typically stores 246,600 tons of coal on site. In 2016,2018, Laiwu Power Plant obtained 14.24%16.4% of its total consumption of coal
55
from annual contracts and the remainder from the open market from the open market. The average coal purchase price for Laiwu Power Plant in 20162018 was RMB460.61 (2015: RMB362.41)RMB636.96 (2017: RMB645.56) per ton.
Laiwu Power Plant sells its electricity to State Grid Shandong Electric Power Company.
Muping Wind Power
Muping Wind Power Plant ("Muping Wind Power") is located in the city of Yantai in Shandong Province. Muping Wind Power Plant consists of 28 wind power turbines of 1.5 MW each. We hold 80% equity interest in Muping Wind Power.
Muping Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Penglai Wind Power
Huaneng Penglai Daliuhang Wind Power Plant ("Penglai Wind Power") is located in the city of Yantai in Shandong Province. Penglai Wind Power Plant consists of 48 wind power turbines of 2 MW each and 2 wind power turbines of 1.8 MW each. We hold 80% equity interest in Penglai Wind Power.
Penglai Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Rushan Wind Power
Huaneng Rushan Wind Power Plant ("Rushan Wind Power") is located in the city of Weihai in Shandong Province. Rushan Wind Power Plant consists of 28 wind power turbines of 1.5 MW each. We hold 80% equity interest in Rushan Wind Power.
Rushan Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Changdao Wind Power
Huaneng Changdao Wind Power Plant ("Changdao Wind Power") is located in the city of Yantai in Shandong Province. Changdao Wind Power Plant consists of 14 wind power turbines of 0.6 MW each, 11 wind power turbines of 0.75 MW each and 3 wind power turbines of 1.3 MW each. We hold 48% equity interest in Changdao Wind Power.
Changdao Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Rongcheng Wind Power
Huaneng Rongcheng Wind Power Plant ("Rongcheng Wind Power") is located in the city of Weihai in Shandong Province. Rongcheng Wind Power Plant consists of 10 wind power turbines of 1.5 MW each. We hold 48% equity interest in Rongcheng Wind Power.
Rongcheng Wind Power sells its electricity to State Grid Shandong Electric Power Company.

56
Dongying Wind Power
Huaneng Dongying Wind Power Plant ("Dongying Wind Power") is located in the city of Dongying in Shandong Province. Dongying Wind Power Plant consists of 32 wind power turbines of 1.5 MW each. We hold 56% equity interest in Dongying Wind Power.
Dongying Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Boshan Photovoltaic
56
Boshan Photovoltaic Power Plant ("Boshan Photovoltaic") is located in Zibo City. Boshan Photovoltaic commenced its operation in May 2016 and has an installed capacity of 12 MW. We hold 80% equity interest in Boshan Photovoltaic.
Boshan Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Gaozhuang Photovoltaic
Gaozhuang Photovoltaic Power Plant ("Gaozhuang Photovoltaic") is located in Laiwu City. Gaozhuang Photovoltaic commenced its operation in May 2016 and has an installed capacity of 20 MW. We hold 80% equity interest in Gaozhuang Photovoltaic.
Gaozhuang Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Jining Co-generation Photovoltaic.Photovoltaic.
Jining Co-generation Photovoltaic Project ("Jining Co-generation Photovoltaic") is located in Jining City. The project commenced its operation in February 2017 and has an installed capacity of 20 MW. We hold 80% equity interest in this project.
Jining Co-generation PhotovlaticPhotovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Construction ProjectZhanhua Qingfenghu Wind Power
Zhanhua Qingfenghu Wind Power Plant ("Zhanhua Qingfenghu Wind Power") is located in the city of Binzhou in Shandong Province
Yantai Bajiao "Bigger units over Small Projects". In April 2014, Yantai Bajiao "Prioritizing Mega Projects over Small Projects"Province. Zhanhua Qingfenghu Wind Power Plant project was approved by the NDRC. The project is planned to havecommenced operation in December 2017 with an installed capacity of 1,340100 MW, including two sets50 wind power turbines of ultra-supercritical coal-fired generating units of 6702 MW each. We hold 80% equity interest in this project.Zhanhua Qingfenghu Wind Power.
Laiwu NiuquanZhanhua Qingfenghu Wind Power sells its electricity to State Grid Shandong Electric Power Company.
Jining Photovoltaic Project. In June 2015, Laiwu Niuquan
Jining 20 MW Photovoltaic Project was approved byPower Plant ("Jining Photovoltaic") is located in the NDRCcity of Laiwu Municipality. The project is planned to haveJining of Shandong Province. Jining Photovoltaic commenced its operation in February 2017 and has an installed capacity of 20 MW. We hold 80% equity interest in this project.Jining Photovoltaic.
Jining Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Laiwu Niuquan Photovoltaic
Laiwu Niuquan 20 MW Photovoltaic Power Plant ("Laiwu Niuquan Photovoltaic") is located in the city of Laiwu of Shandong Province. Laiwu Niuquan Photovoltaic commenced its operation in April 2017 and has an installed capacity of 20 MW. We hold 80% equity interest in Laiwu Niuquan Photovoltaic.
Laiwu Niuquan Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.

57
Zhanhua Qingfenghu Photovoltaic
Zhanhua Qingfenghu 100MW Photovoltaic Power Plant ("Zhanhua Qingfenghu Photovoltaic") is located in the city of Binzhou of Shandong Province. Zhanhua Qingfenghu Photovoltaic commenced its operation in June 2017 and has an installed capacity of 100 MW. We hold 46% equity interest in Zhanhua Qingfenghu Photovoltaic.
Zhanhua Qingfenghu Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Weihai Haibu Photovoltaic
Weihai Haibu 19.8MW Photovoltaic Power Plant ("Weihai Haibu Photovoltaic") is located in the city of Weihai of Shandong Province. Weihai Haibu Photovoltaic commenced its operation in June 2017 and has an installed capacity of 19.75 MW. We hold 80% equity interest in Weihai Haibu Photovoltaic.
Weihai Haibu Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Jining Weishan Zhaozhuang Photovoltaic
Jining Weishan Zhaozhuang 80MW Photovoltaic Power Plant ("Jining Weishan Zhaozhuang Photovoltaic") is located in the city of Jining of Shandong Province. Jining Weishan Zhaozhuang Photovoltaic commenced its operation in December 2017 and has an installed capacity of 80MW. We hold 40% equity interest in Jining Weishan Zhaozhuang Photovoltaic.
Jining Weishan Zhaozhuang Photovoltaic sells its electricity to State Grid Shandong Electric Power Company.
Power Plants and Projects in Henan Province
Qinbei Power Plant
Huaneng Qinbei Power Plant ("Qinbei Power Plant") is located in Jiyuan City of Henan Province. Its installed capacity is 2,400 MW which consists of four 600 MW supercritical coal-fired generating units. Two units commenced operations in November and December 2004, and the other two units commenced operation in November 2007. In March 2012 and February 2013, two 1,000 MW domestic ultra-supercritical coal-fired generating units of the Phase III of Qinbei Power Plant commenced operation, respectively. We hold 60% equity interest in Qinbei Power Plant.
The coal supply for Qinbei Power Plant is obtained from Shanxi Province. Qinbei Power Plant typically stores 270,000 tons of coal on site. In 2016,2018, Qinbei Power Plant obtained 64%37.5% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Qinbei Power Plant in 20162018 was RMB401.89 (2015: RMB352.53)RMB546.80 (2017: RMB538.13) per ton.
Qinbei Power Plant sells its electricity to Henan Electric Power Company.
Luoyang Co-generation Power Plant
Luoyang Co-generation Power Plant ("Luoyang Co-generation") is located at Luoyang City of Henan Province. The project has an installed capacity of 700 MW, consisting of two sets of 350MW coal-fired
57
generation units, which commenced operation in May and June 2015, respectively. We hold 80% equity interest in this plant.
The coal supply for Luoyang Co-generation is obtained from Henan and Shaanxi. Luoyang Co-generation typically stores 120,000 tons of coal on site. In 2016,2018, Luoyang Co-generation obtained 36%49.7% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Luoyang Co-generation in 20162018 was RMB434.9 (2015: RMB 307.29)RMB522.17 (2017: RMB535.13) per ton.
Luoyang Co-generation sells its electricity to Henan Electric Power Company.

58
Luoyang Yangguang Power Plant

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

Luoyang Yangguang sells its electricity to Henan Electric Power Company.
Mianchi Co-generation
Mianchi Co-generation Power Plant ("Mianchi Co-generation") is located in Mianchi City of Henan Province. The project has an installed capacity of 700 MW, consisting of two sets of 350MW coal-fired generation units, which commenced operation in December 2016. We hold 60% equity interest in this plant.
The coal supply for Mianchi Co-generation is obtained from Yima Coal Group which has mining operations in Henan, Qinghai, Shanxi, Tibet and Inner Mongolia. Mianchi Co-generation typically stores 20,000 tons of coal on site. In 2016,2018, Mianchi Co-generation obtained 100%85.5% of its total consumption of coal from annual contracts. The average coal purchase price for Luoyang Co-generation Power Plant in 20162018 was RMB450. 00RMB448.69 (2017: RMB413.22) per ton.
Mianchi Co-generation sells its electricity to Henan Electric Power Company.
Zhumadian Guoji Wind Power
Zhumadian Guoji Wind Power ("GuojiZhumadian Wind Power") is located in Zhumadian City of Henan Province. The project has an installed capacity of 32 MW, consisting of sixteen 2MW wind turbines, which commenced operation in December 2016. We hold 90% equity interest in this plant.
GuojiZhumadian Wind Power sells its electricity to Henan Electric Power Company.
Construction ProjectQinbei Dianchanghuichang Photovoltaic
Qinbei Dianchanghuichang 20MW Photovoltaic Power Plant ("Qinbei Dianchanghuichang Photovoltaic") is located in Henan Province
Qinbei Photovoltaic Project. In October 2014, Qinbei Photovoltaic Project was approved by the NDRCcity of Jiyuan Municipality. The project is planned to haveof Henan Province. Qinbei Dianchanghuichang Photovoltaic commenced its operation in June 2017 and has an installed capacity of 20MW. We hold 60% equity interest in Qinbei Dianchanghuichang Photovoltaic.
Qinbei Dianchanghuichang Photovoltaic sells its electricity to Henan Electric Power Company.
Tangyin Wind Power
Tangyin Wind Power is located in Anyang City of Henan Province. The project has an installed capacity of 151.8 MW, consisting of 69 2MW wind turbines, which commenced operation in December 2018. We hold 100% euiqtyequity interest in this project.plant.
Power Plants and Projects in Jiangsu Province
Nantong Power Plant
Huaneng Nantong Power Plant ("Nantong Power Plant") is located in Nantong City. Nantong Power Plant, including Phase I, Phase II and Phase III, has an installed capacity of 2,454 MW and consists of two 352 MW, two 350 MW and one 1,050 MW coal-fired generating units which commenced operations in 1989, 1990 1999 and 2014. We hold 100% equity interest in Phase I and Phase II of Nantong Power Plant and 35% equity interest in Phase III of Nantong Power Plant.
The coal supply for Nantong Power Plant is obtained from several coal producers located mostly in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and then shipped to the Nantong Power Plant. Nantong Power Plant typically stores 300,000 tons of coal on site.

5859
In 2016,2018, Nantong Power Plant obtained 16%54.7% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Nantong Power Plant in 20162018 was RMB418.91 (2015: RMB415.40)RMB516.52 (2017: RMB507.93) per ton.
Nantong Power Plant sells its electricity to Jiangsu Electric Power Company.
Nanjing Power Plant
Huaneng Nanjing Power Plant ("Nanjing Power Plant") has an installed capacity of 640 MW consisting of two 320 MW coal-fired generating units which commenced operations in March and October 1994, respectively. We hold 100% equity interest in Nanjing Power Plant.
The coal supply for the Nanjing Power Plant is obtained from several coal producers located in the Shanxi and Anhui Provinces. The coal is transported by rail from the mines to Yuxikou Port and Pukou Port and shipped to the plant's own wharf facilities. The wharf is capable of handling 6,000 ton vessels. Nanjing Power Plant typically stores 120,000 tons of coal on site and consumes 5,000 tons of coal per day when operating at maximum generating capacity.
In 2016,2018, Nanjing Power Plant obtained approximately 17%80.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Nanjing Power Plant in 20162018 was RMB469.51 (2015: RMB440.36)RMB623.28 (2017: RMB608.51) per ton.
Nanjing Power Plant sells its electricity to Jiangsu Electric Power Company.
Taicang Power Plant
Huaneng Taicang Power Plant ("Taicang Power Plant") is located in the vicinity of Suzhou, Wuxi and Changzhou, which is the most affluent area in Jiangsu Province. Taicang Power Plant is an ancillary facility of the China-Singapore Suzhou Industrial Park. Taicang Power Plant Phase I consists of two 300 MW coal-fired generating units, which commenced operations in December 1999 and April 2000 respectively. Taicang Phase II Expansion consists of two 600 MW coal-fired generating units, which commenced operations in January and February 2006, respectively. In April 2008, the installed capacities of the four units of Taicang Power Plant were upgraded to 320 MW, 320 MW, 630 MW and 630 MW, respectively, which increased the total installed capacity of Taicang Power Plant to 1,900 MW. We hold 75% equity interest in Taicang Power Plant.
The coal supply for Taicang Power Plant is primarily from Shenhua in Inner Mongolia and Datong in Shanxi Province. Taicang Power Plant typically stores 350,000 tons of coal on site. In 2016,2018, Taicang Power Plant obtained approximately 24%47.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Taicang Power Plant in 20162018 was RMB455.26 (2015: RMB395.68)RMB491.97 (2017: RMB497.05) per ton.
Taicang Power Plant sells its electricity to Jiangsu Electric Power Company.
Huaiyin Power Plant
Huaneng Huaiyin Power Plant ("Huaiyin Power Plant") is located in the Center of the Northern Jiangsu Power Grid. The plant's two 220 MW coal-fired generating units commenced operation in November 1993 and August 1994, respectively. In order to reduce energy consumption and increase capacity, one generating unit of Huaiyin Power Plant was upgraded in October 2001, which increased the maximum generating capacity of that unit to 220 MW. In 2002, upgrading of the second generating unit was completed, and the actual generating capacity of Huaiyin Power Plant is 440 MW. The other two 330 MW coal-fired generating units of Huaiyin Power Plant Phase II Expansion commenced operations in January and March 2005, respectively. Huaiyin Power Plant Phase III consists of two 330 MW coal-fired generating units, and which were put into operation in May and September 2006, respectively. We hold 100% equity interest in Phase I and 63.64% equity interest in Phase II and Phase III of
59
Huaiyin Power Plant. Unit I and Unit II of Huaiyin Power Plant were shut down in December 2007 and January 2009, respectively.

60
The coal supply for the Huaiyin Power Plant is primarily from Anhui Province, Henan Province and Shanxi Province. Huaiyin Power Plant typically stores 180,000 tons of coal on site. In 2016,2018, Huaiyin Power Plant obtained approximately 29%47.9% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Huaiyin Power Plant in 20162018 was RMB460.77 (2015: RM440.49)RMB619.22 (2017: RMB591.79) per ton.
Huaiyin Power Plant sells its electricity to Jiangsu Electric Power Company.
Jinling Power Plant
Huaneng Nanjing Jinling Power Plant ("Jinling Power Plant") is located in Nanjing, Jiangsu. Jinling Power Plant (CCGT) consists of two 390 MW gas-fired generating units, which commenced operation in December 2006 and March 2007, respectively. We hold 60% equity interest in Jinling Power Plant (CCGT). The gas supply for Jinling Power Plant (CCGT) is transported through the pipeline of "West-East Gas Transport Project".Project."
Jinling Power Plant (Coal-fired) consists of two 1,030 MW domestic ultra-supercritical coal-fired generating units, which commenced operation in December 2009 and August 2012, respectively. We hold 60% equity interest in Phase I and Phase II of Jinling Power Plant (Coal-fired). The coal supply for Jinling Power Plant (Coal-fired) is primarily from Shanxi Province and Inner Mongolia Autonomous Region. Jinling Power Plant (Coal-fired) typically stores 300,000 tons of coal on site. In 2016,2018, Jinling Power Plant (Coal-fired) obtained approximately 37%57.9% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jinling Power Plant (Coal-fired) in 20162018 was RMB447.20 (2015: RMB421.31)RMB538.15 (2017: RMB543.80) per ton.
Jinling Power Plant sells its electricity to Jiangsu Electric Power Company.
Qidong Wind Power
Huaneng Qidong Wind Power Plant ("Qidong Wind Power") is located in Nantong City, Jiangsu. Qidong Wind Power Phase I has an installed capacity of 91.5 MW and commenced operation in March 2009. The first stage and second stage of the Phase II Project of Qidong Wind Power with a total generation capacity of 50 MW and 44 MW respectively commenced operation in January 2011 and June 2012, respectively. We hold 65% equity interest in Qidong Wind Power.
Qidong Wind Power Plant sells its electricity to Jiangsu Electric Power Company.
Jinling CCGT Co-generation
Jinling CCGT Co-generation is located in Nanjing, Jiangsu. The plant comprises of two 191 MW class (E grade) combined cycle gas turbine cogeneration units and the corresponding support facilities. The two units commenced operation in April 2013 and May 2013, respectively. We hold 51% equity interest in Jinling CCGT Co-generation. The gas supply for this plant is transported through the pipeline of "West-East Gas Transport Project".Project."
Jinling CCGT Co-generation sells its electricity to Jiangsu Electric Power Company.
Rudong Wind Power
Rudong Wind Power Plant ("Rudong Wind Power") is located in Rudong, Jiangsu. Phase I of the plant has a total installed generation capacity of 48MW. It commenced operations in November 2013. We hold 90% equity interest in Rudong Wind Power.
Rudong Wind Power sells its electricity to Jiangsu Electric Power Company.
Tongshan Wind Power
60
Tongshan Wind Power Plant ("Tongshan Wind Power") is located in Tongshan, Jiangsu Province. Phase I of the plant has an installed capacity of 50 MW. It commenced operation in March 2016. The phase II commenced operation in December 2017, and has an installed capacity of 48MW, consisting of 24 wind turbines of 2WM each. We hold 70% equity interest in Tongshan Wind Power.

61
Tongshan Wind Power sells its electricity to Jiangsu Electric Power Company.
Suzhou Co-generation
Huaneng Suzhou Co-generation Power Plant ("Suzhou Co-generation") is located in Suzhou City in Jiangsu Province. Suzhou Co-generation has an installed capacity of 120 MW and consists of two 60 MW coal-fired generating units which commenced operation in 2006. We hold 53.45% equity interest in Suzhou Co-generation. We acquired the power plant in January, 2015 from Huaneng Group.
The coal supply for Suzhou Co-generation is obtained from Shanxi, Inner Mongolia and partially imported coal.Suzhoucoal. Suzhou Co-generation typically stores 30,000 tons of coal on site. In 2016,2018, Suzhou Co-generation obtained 24%56.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Suzhou Co-generation in 20162018 was RMB455.26 (2015: RMB426.30)RMB590.35 (2017: RMB551.67) per ton.
Suzhou Co-generation sells its electricity to Jiangsu Electric Power Company.
Taicang Coal Pier Project
Suzhou Port Taicang Terminal Zone Huaneng Coal Pier ("Taicang Coal Pier Project") is located in Taicang, Suzhou. The Taicang Coal Pier Project has one berth of 100,000 dead weight tonnage ("DWT") and one berth of 50,000 DWT for coal discharging, four berths of 5,000 DWT each and six berths of 1,000 DWT each for coal loading. The above facilities have commenced trial operation in 2013. We hold 100% equity interest in this project.
Nanjing Chemical Industry Park Co-generation Power Plant
Nanjing Chemical Industry Park Co-generation Power Plant ("Nanjing Chemical Industry Park Co-Generation") is located in the city of Nanjing in Jiangsu Province. It has an installed capacity of 100MW consisting of two sets of extraction back-pressure turbines of 50 MW each, which commenced operation in April and December 2016, respectively. We hold 70% equity interest in Nanjing Chemical Industry Park Co-Generation Power Plant.
Nanjing Chemical Industry Park Co-generation typically stores 60,000 tons of coal on site. In 2016,2018, Nanjing Co-generation obtained 85%95.9% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Nanjing Chemical Industry Park Co-generation in 20162018 was RMB490.8RMB613.77 (2017: RMB588.20) per ton.
Nanjing Chemical Industry Park Co-generation Power Plant sells its electricity to Jiangsu Electric Power Company.
Luhe Wind Power
Luhe Wind Power ("Luhe Wind Power") is located in Nanjing, Jiangsu. It has an installed capacity of 50 MW, consisting of 25 wind power turbines of 2 MW each, which commenced operation in December 2016. We hold 100% equity interest in Luhe Wind Power.
Luhe Wind Power sells its electricity to Jiangsu Electric Power Company.
Construction ProjectGuanyun Co-generation Power
Guanyun Co-generation Power Plant ("Guanyun Co-generation Power") is located in Jiangsu Province
Suzhou Gas fired Co-generation Project. In October 2012, Huaneng Suzhou gas-fired Co-generation Project was approved by the Jiangsu Province Development and Reform Commission. We hold 100% equity interest in this
61
project. The Project is planned to consistcity of two sets of 255MW class (E-class) combined cycle gas turbine cogeneration units.
Guanyun Co-Generation Power Project. Guanyun Co-Generation Power  Project was approved by the Development and Reform CommissionLianyungang of Jiangsu Province, in April 2015. We hold 100% equity interest in the project. Guanyun Co-Generation Power  Project is planned to havewith an installed capacity of 50 MW consisting of two sets25 MW coal-fired generating units which commenced operations in December 2017. We hold 100% equity interest in Guanyun Co-generation Power.
In 2018, Guanyun Co-generation Power obtained 100.0% of extraction back-pressureits total consumption of coal from annual contracts. The average coal purchase price for Guanyun Co-generation Power in 2018 was RMB670.30 per ton.
Guanyun Co-generation Power sells its electricity to Jiangsu Electric Power Company.

62
Suzhou CCGT
Suzhou Gas-fired Co-generation Power Plant ("Suzhou CCGT") is located in the city of Lianyungang of Jiangsu Province, with an installed capacity of 452 MW consisting of two (E-class) combined cycle gas turbine cogeneration units which commenced operations in July and September 2017, respectively. We hold 100% equity interest in Suzhou CCGT.
Suzhou CCGT sells its electricity to Jiangsu Electric Power Company.
Rudong Offshore Wind Power
Rudong Offshore Wind Power ("Rudong Offshore Wind Power") is located in the county of Rudong, the city of Nantong of Jiangsu Province. It has an installed capacity of 302.4 MW, consisting of 38 wind power turbines of 254 MW each.each, 12 wind power turbines of 4.2 MW each, and 20 wind power turbines of 5 MW each, which commenced operation in March and September 2017. We hold 70% equity interest in Rudong Offshore Wind Power.
Rudong Offshore Wind Power sells its electricity to Jiangsu Electric Power Company.
Yizheng Wind Power
Yicheng Wind Power ("Yicheng Wind Power") is located in the city of Yizheng of Jiangsu Province. It has an installed capacity of 60 MW, consisting of 21 wind power turbines of 2.2 MW each and 6 wind power turbines of 2.3 MW each, which commenced operation in December 2017 and July 2018, respectively. We hold 100% equity interest in Yizheng Wind Power.
Yizheng Wind Power sells its electricity to Jiangsu Electric Power Company.
Taicang Dianchanghuichang Photovoltaic
Taicang Dianchanghuichang 40MW Photovoltaic Power Plant ("Taicang Dianchanghuichang Photovoltaic") is located in the city of Taicang of Jiangsu Province. Taicang Dianchanghuichang Photovoltaic commenced its production of 40MW in April 2017 and commenced its production of 10 MW in June 2018, respectively. We hold 75% equity interest in Taicang Dianchanghuichang Photovoltaic.
Taicang Dianchanghuichang Photovoltaic sells its electricity to Jiangsu Electric Power Company.
Guanyun Photovoltaic
Guanyun 14.1MW Photovoltaic Power Plant ("Guanyun Photovoltaic") is located in the city of Lianyungang of Jiangsu Province. Guanyun Photovoltaic commenced its operation in June 2017 and has an installed capacity of 14.1MW. We hold 100% equity interest in Guanyun Photovoltaic.
Guanyun Photovoltaic sells its electricity to Jiangsu Electric Power Company.
Huaiyin Dianchang Photovoltaic
Huaiyin Dianchang Photovoltaic is located in Huaian City of Jiangsu Province. Huaiyin Dianchang Photovoltaic commenced its operation in June 2018 and has an installed capacity of 30 MW. We hold 100% equity interest in Huaiyin Dianchang Photovoltaic.
Power Plants in Shanghai Municipality
Shidongkou I
Huaneng Shanghai Shidongkou First Power Plant ("Shidongkou I") is located in the northern region of the Shanghai Power Grid. The plant comprises four 325 MW coal-fired generating units, which commenced operation in February and December 1988, September 1989 and May 1990 respectively, and has a total installed capacity of 1,300 MW. The installed capacities of Unit II and Unit III were expanded from 300 MW to 325 MW in September

63
2007 and January 2008, respectively. The installed capacities of Unit I and Unit V were expanded from 300 MW and 320 MW to 325 MW and 325 MW in January 2010, respectively. We hold 100% equity interest in Shidongkou I.
The coal supply for Shidongkou I is primarily from Shanxi Province, Anhui Province and Henan Province. Shidongkou I Power Plant typically stores 150,000 tons of coal on site. In 2016,2018, Shidongkou I obtained 20%59.2% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Shidongkou I in 20162018 was RMB318.58 (2015: RMB337.15)RMB447.03 (2017: RMB447.81) per ton.
Shidongkou I sells its electricity to State Grid Shanghai Municipal Electric Power Company.
Shidongkou II
Huaneng Shanghai Shidongkou Second Power Plant ("Shidongkou II") is located in the northern suburbs of Shanghai. Shidongkou II has an installed capacity of 1,200 MW and consists of two 600 MW coal-fired super-critical units which commenced operations in June and December 1992, respectively. We hold 100% equity interest in Phase I of Shidongkou II. Phase II of Shidongkou II has an installed capacity of 1,320 MW and consists of two 660 MW coal-fired super-critical units which commenced operations in October 2011. We hold 50% equity interest in Phase II of Shidongkou II.
The coal supply for Shidongkou II is obtained from several coal producers located mostly in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port or Tianjin port and shipped to the plant's own wharf facilities. The wharf is capable of handling 35,000 ton vessels. Shidongkou II typically stores 180,000 tons of coal on site.
In 2016,2018, Shidongkou II obtained 9%61.5% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Shidongkou II in 20162018 was RMB358.21 (2015: RMB386.06)RMB503.58 (2017: RMB471.49) per ton.
Shidongkou II sells its electricity to State Grid Shanghai Municipal Electric Power Company.
Shanghai CCGT
Shanghai CCGT is located in Baoshan District of Shanghai Municipality. Shanghai CCGT consists of three 390 MW gas-fired combined-cycle generating units with a total installed capacity of 1,170 MW, which were put into operation in May, June and July 2006, respectively. We hold 70% equity interest in Shanghai CCGT.
The gas supply for Shanghai CCGT is transported through the pipeline of "West-East Gas Transport Project".Project." Shanghai CCGT generates electricity during the peak load periods and sells its electricity to State Grid Shanghai Municipal Electric Power Company.
62
Power Plant in Chongqing Municipality
Luohuang Power Plant
Huaneng Luohuang Power Plant ("Luohuang Power Plant") is located in Chongqing Municipality. Each of Phase I and Phase II of Luohuang Power Plant has an installed capacity of 720 MW and consists of two 360 MW coal-fired generating units. The two units in Phase I commenced operation in September 1991 and February 1992 respectively, and the two units in Phase II commenced operation in December 1998. Luohuang Power Plant Phase III consist of two 600 MW coal-fired generating units with an installed capacity of 1,200 MW, which were put into operation in December 2006 and January 2007, respectively. We hold 60% equity interest in Luohuang Power Plant.
The coal supply for Luohuang Power Plant is obtained from Chongqing Municipality. Luohuang Power Plant typically stores 450,000 tons of coal on site. In 2016,2018, Luohuang Power Plant obtained 87%99.9% of its coal supplies from annual contracts and the remainder from the open market. The average coal purchase price for Luohuang Power Plant in 20162018 was RMB462.33 (2015: RMB432.97)RMB550.64 (2017: RMB584.09) per ton.
Luohuang Power Plant sells its electricity to Chongqing Municipal Electric Power Company.

64
Liangjiang CCGT
Liangjiang CCGT is located in Chongqing Municipality. Two generating units of this plant commenced operation in October and December 2014, respectively, with an installed capacity of 934 MW. We hold 90% equity interest in Liangjiang CCGT. The gas supply for Liangjiang CCGT is transported thoughthrough pipeline of "West-East Gas Transport Project."
Liangjing CCGT sells its electricity to State Grid Chongqing Municipal Electric Power Company.
Fengjie Jinfengshan Wind Power
Fengjie Jinfengshan Wind Power is located in Fengjie County of Chongqing Municipality. Fengjie Jinfengshan Wind Power commenced its operation in December 2018 and has an installed capacity of 110 MW, consisting of 55 2MW wind turbines. We hold 100% equity interest in Fengjie Jinfengshan Wind Power.
Power Plants in Zhejiang Province
Yuhuan Power Plant
Huaneng Yuhuan Power Plant ("Yuhuan Power Plant") is located in Taizhou of Zhejiang Province. Yuhuan Power Plant Phase I consists of two 1,000 MW ultra-supercritical coal-fired generating units with a total installed capacity of 2,000 MW. Unit I and Unit II were put into operation in November 2006 and December 2006, respectively. Yuhuan Power Plant Phase II consists of two 1,000 MW ultra-supercritical coal-fired generating units with a total installed capacity of 2,000 MW, which commenced operations in November 2007. We hold 100% equity interest in Yuhuan Power Plant.
The coal supply for Yuhuan Power Plant is primarily obtained from Shanxi Province and Inner Mongolia Autonomous Region. Yuhuan Power Plant typically stores 500,000 tons of coal on site. In 2016,2018, Yuhuan Power Plant obtained 76%56.2% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yuhuan Power Plant in 20162018 was RMB475.90 (2015: RMB474.23)RMB631.29 (2017: RMB632.40) per ton.
Yuhuan Power Plant sells its electricity to State Grid Zhejiang Electric Power Company.
Changxing "Replacing Small Units with Large Ones" Project
Changxing Power Plant "Replacing Small Units with Large Ones" Project ("Changxing Power Plant") is located in Changxing County of Zhejiang Province. Changxing "Replacing Small Units with Large Ones" Project commenced operation in December 2014, with an installed capacity of 1,320 MW. This is the first project of ultra-supercritical coal-fired generating units of the Company. We hold 100% equity interest in the project.
The coal supply for Changxing Power Plant is primarily obtained from Inner Mongolia,Hebei and partially imported coal. Changxing Power Plant typically stores 150,000 tons of coal on site. In 2016,2018, Changxing Power Plant
63
obtained 41%50.4% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Changxing Power Plant in 20162018 was RMB477.36 (2015: RMB484.53)RMB620.99 (2017: RMB602.20) per ton.
Tongxiang CCGT
Tongxiang CCGT is located in Tongxiang City of Zhejiang Province. The plant commenced operation in September 2014 with an installed capacity of 458.4 MW. We hold 95% equity interest in the Tongxiang CCGT. The gas supply for Tongxiang CCGT is transported through pipeline of "West-East Gas Transport Project."
Tongxiang CCGT sells its electricity to State Grid Zhejiang Electric Power Company.
Changxing Photovoltaic
Si'an 10MW Distributed Photovoltaic Power Project ("Changxing Photovoltaic") is located in Changxing County of Zhejiang Province. Part of the project commenced operation in December 2014, with an installed capacity

65
of 5 MW. In March 2015, the rest of the project commenced operation in March 2015, with an installed capacity of 5 MW. We hold 100% equity interest in Changxing Photovoltaic.
Changxing Hongqiao Photovoltaic
Changxing Hongqiao Photovoltaic PowerPhotovoltaicPower Project ("Changxing Hongqiao Photovoltaic") is located in Changxing Country of ZhejingZhejiang Province. It commenced operation in SetpotemberSeptember 2016, with an installed capacity of 30 MW. We hold 100% euiqtyequity interest in this project.
Huzhou Distributed Photovoltaic
Huzhou Distributed PhotovoltaicPower Project ("Huzhou Distributed Photovoltaic") is located in the city of Huzhou of Zhejiang Province. It commenced operation in June and December 2017, with an installed capacity of 20 MW. We hold 100% equity interest in Huzhou Distributed Photovoltaic.
Huzhou Distributed Photovoltaic sells its electricity to Zhejiang Electric Power Company.
Power Plant in Hunan Province
Yueyang Power Plant
Huaneng Yueyang Power Plant ("Yueyang Power Plant") is located in Yueyang City of Hunan Province. Yueyang Power Plant Phase I has an installed capacity of 725 MW and consists of two 362.5 MW sub-critical coal-fired generating units which commenced operation in September and December 1991 respectively. Yueyang Power Plant Phase II consists of two 300MW coal-fired generating units with installed capacity of 600 MW, which were put into operation in March and May 2006, respectively. Huaneng Yueyang Power Plant Phase III ("Yueyang Power Plant Phase III") consists of two 600 MW generating units with a total installed capacity of 1,200 MW. In January 2011 and August 2012, Unit 5 and Unit 6 of Yueyang Power Plant Phase III, two 600MW coalfiredcoal-fired generating units, commenced operation, respectively. We hold 55% equity interest in Yueyang Power Plant.
The coal supply for Yueyang Power Plant is obtained from Datong in Shanxi Province. Yueyang Power Plant typically stores 500,000 tons of coal on site. In 2016,2018, Yueyang Power Plant obtained 4%43.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Yueyang Power Plant in 20162018 was RMB485.68 (2015: RMB436.55)RMB702.09 (2017: RMB642.12) per ton.
Yueyang Power Plant sells its electricity to State Grid Hunan Electric Power Company.
Xiangqi Hydropower
Huaneng Yongzhou Xiangqi Hydropower Station ("Xiangqi Hydropower") is located in Xiangqi County of Hunan Province. Xiangqi Hydropower consists of four 20 MW hydraulic generating units with a total installed capacity of 80 MW. In December 2011, Unit I of Xiangqi Hydropower with an installed capacity of 20 MW passed a trial run. Unit I and Unit II of Yongzhou Xiangqi Hydropower with an installed capacity of 20 MW each commenced operation in December 2011 and May 2012, respectively. Unit III and Unit IV of Xiangqi Hydropower with an installed capacity of 20 MW commenced operation in May and August 2012, respectively. We hold 100% equity interest in Xiangqi Hydropower.
Xiangqi Hydropower sells its electricity to Hunan Electric Power Company.
64
Subaoding Wind Power
Subaoding Wind Power ("Subaoding Wind Power") is located between Hongjiang City and Dongkou County in Hunan. Part of the Subaoding Wind Power commenced operation in December 2014, with an installed capacity of 80MW, consisting of 40 wind power turbines of 2 MW. The rest of the Subaoding Wind Power commenced operation in March 2015, with an installed capacity of 70 MW, consisting of 35 wind power turbine of 2 MW each. As of the date of this report, all of the wind power turbines have commenced operation with a total installed capacity of 150 MW. We hold 100% equity interest in the Subaoding Wind Power.

66
Subaoding Wind Power sells its electricity to Hunan Electric Power Company.
Guidong Wind Power
Guidong Wind Power ("Guidong Wind Power") is located at Guidong County of Hunan Province. Guidong Wind Power commenced operation in 2015, with an installed capacity of 84 MW, consisting of 42 wind power turbines of 2 MW each. We hold 100% equity interest in this plant.
Guidong Wind Power sells its electricity to Hunan Electric Power Company.
Yueyang Xingang Photovoltaic
Yueyang Xingang 10MW Distributed Photovoltaic Power Project ("Yueyang Xingang Photovoltaic") is located in the city of Yueyang of Hunan Province. Yueyang Xingang Photovoltaic commenced operation in May 2017, with an installed capacity of 10 MW. We hold 60% equity interest in Yueyang Xingang Photovoltaic.
Yueyang Xingang Photovoltaic sells its electricity to Hunan Electric Power Company.
Yueyang Leigutai Photovoltaic
Yueyang Leigutai 20MW Distributed Photovoltaic Power Project ("Yueyang Leigutai Photovoltaic") is located in the city of Yueyang of Hunan Province. Yueyang Liangang Photovoltaic commenced operation in June 2017, with an installed capacity of 20 MW. We hold 55% equity interest in Yueyang Leigutai Photovoltaic.
Yueyang Leigutai Photovoltaic sells its electricity to Hunan Electric Power Company.
Power Plant in Hubei Province
Enshi Maweigou Hydropower
Hubei Enshi Maweigou Hydropower Station ("Enshi Maweigou Hydropower") is located in Enshi City of Hubei Province. We entered into an equity transfer agreement to acquire Enshi Maweigou Hydropower on September 30, 2011. Enshi Maweigou Hydropower consists of three 5 MW hydraulic generating units and two 20 MW hydraulic generating units with a total installed capacity of 55 MW. We hold 100% equity interest in Enshi Maweigou Hydropower.
Enshi Maweigou Hydropower sells its electricity to Hubei Electric Power Company.
Wuhan Power Plant
Huaneng Wuhan Power Plant ("Wuhan Power Plant") is located in Wuhan City in Hubei Province. Wuhan Power Plant has an installed capacity of 2,460 MW and consists of two 300 MW coal-fired generating units which commenced operation in 1993 and 1994, two 330 MW coal-fired generating units which commenced operation in 1997, and two 600 MW coal-fired generating units which commenced operation in 2006. We hold 75% equity interest in Wuhan Power Plant. We acquired the power plant in January, 2015 from Huaneng Group.
In 2018, Wuhan Power Plant obtained 64.3% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Wuhan Power Plant in 2018 was RMB691.71per ton.
Wuhan Power Plant sells its electricity to Hubei Electric Power Company.
Dalongtan Hydropower
Huaneng Dalongtan Hydropower Station ("Dalongtan Hydropower") is located in Enshi City of Hubei Province. Dalongtan Hydropower has an installed capacity of 37.6 MW. We hold 97% equity interest in Dalongtan Hydropower. We acquired the power plant in January, 2015 from Huaneng Group.

67
Dalongtan Hydropower sells its electricity to Hubei Electric Power Company.
Jingmen Co-generation
Huaneng Jingmen Co-generation Power Plant ("Jingmen Co-generation" or "Jingmen Thermal Power") is located in Jingmen City in Hubei Province. Jingmen Co-generation has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operation in 2014. We hold 100% equity interest in Jingmen Co-generation. We acquired the power plant in January, 2015 from HIPDC.
65
The coal supply for Jingmen Co-generation is obtained from Shaanxi and Gansu. Jingmen Co-generation typically stores 90,000 tons of coal on site. In 2016,2018, Jingmen Co-generation obtained 69%59.7% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Jingmen Co-generation in 20162018 was RMB464.31 (2015: RMB399.46)RMB645.38 (2017: RMB615.65) per ton.
Jingmen Co-generation sells its electricity to Hubei Electric Power Company.
Yingcheng Co-generation
Huaneng Yingcheng Co-generation Power Plant ("Yingcheng Co-generation") is located in Yingcheng City in Hubei Province. Unit II of Yingcheng Co-generation has an installed capacity of 350 MW which commenced operation in January 2015. Unit I of Yingcheng Co-generation has an installed capacity of 50 MW, which commenced operation in June 2016. We hold 100% equity interest in Yingcheng Co-generation. We acquired the power plant in January, 2015 from HIPDC.
The coal supply for Yingcheng Co-generation is obtained from Shanxi and Shaanxi.Yingcheng Co-generation typically stores 50,000 tons of coal on site. In 2016,2018, Yingcheng Co-generation obtained 100%74.4% of its total consumption of coal from the open market. The average coal purchase price for Yingcheng Co-generation in 20162018 was RMB632.52 (2015: RMB516.10)RMB680.05 (2017: RMB722.85) per ton.
Yingcheng Co-generation sells its electricity to Hubei Electric Power Company.
Jieshan Wind Power
Jieshan Wind Power Plant ("Jieshan Wind Power") is located at Suixian County of Hubei Province. The Phase I of Jieshan Wind Power commenced operation in June 2015, with an installed capacity of 48 MW, consisting of 24 wind power turbines of 2 MW. Phase II of Jieshan Wind Power commenced operation in August 2016, with an installed capacity of 72 MW, consisting of 36 wind power turbines of 2 MW. We hold 100% equity interest in the Jieshan Wind Power.
Jieshan Wind Power sells its electricity to Hubei Electric Power Company.
Zhongxiang Hujiawan Wind Power
Zhongxiang Hujiawan Wind Power ("Zhongxiang Hujiawan Wind Power") is located in the city of Jingmen of Hubei Province. Zhongxiang Hujiawan Wind Power commenced operation in December 2017 and August 2018, with an installed capacity of 24 MW and 126 MW, respectively, consisting of totally 75 wind power turbines of 2 MW each. We hold 100% equity interest in this plant.
Zhongxiang Hujiawan Wind Power sells its electricity to Hubei Electric Power Company.
Suizhou Zengdufuhe Photovoltaic
Suizhou Zengdufuhe 20MW Photovoltaic Power Project ("Suizhou Zengdufuhe Photovoltaic") is located in the city of Suizhou of Hubei Province. Suizhou Zengdufuhe Photovoltaic commenced operation in September and December 2017, with an installed capacity of 20 MW. We hold 100% equity interest in Suizhou Zengdufuhe Photovoltaic.
Suizhou Zengdufuhe Photovoltaic sells its electricity to Hubei Electric Power Company.

68
Power Plant in Jiangxi Province
Jinggangshan Power Plant
Huaneng Jinggangshan Power Plant ("Jinggangshan Power Plant") is located in Ji'an City of Jiangxi Province. Jinggangshan Power Plant has an installed capacity of 1,920 MW and consists of two 300 MW coal-fired generating units which commenced operation in December 2000 and August 2001 respectively, and two 660 MW generating units which commenced operation in November and December 2009, respectively. We hold 100% equity interest in Jinggangshan Power Plant.
The coal supply for Jinggangshan Power Plant is obtained from Henan Province, Anhui Province and Jiangxi Province. Jinggangshan Power Plant typically stores 255,000 tons of coal on site. In 2016,2018, Jinggangshan Power Plant obtained 29%49.6% of its total coal consumption from annual contracts and the remainder from the open market. The average coal purchase price for Jinggangshan Power Plant in 20162018 was RMB544.48 (2015: RMB532.70)RMB752.45 (2017: RMB730.52) per ton.
Jinggangshan Power Plant sells its electricity to Jiangxi Electric Power Company.
Jianggongling Wind Power
Jianggongling Wind Power Plant ("JiangonglingJianggongling Wind Power") is located in Jiujiang Municipality of Jiangxi Province. Jianggongling Wind Power commenced operation in December 2014 (Phase I), with an installed capacity of
66
48 MW, consisting of 24 wind power turbine of 2 MW, and in December 206 (Phase II), with an installed capacity of 26 MW, consisting of 13 wind power turbines of 2 MW. We hold 100% equity interest in the Jianggongling Wind Power.
Ruijin Power Plant
Huaneng Ruijin Power Plant ("Ruijin Power Plant") is located in Ruijin City in Jiangxi Province. Ruijin Power Plant has an installed capacity of 700 MW and consists of two 350 MW coal-fired generating units which commenced operation in 2008. We hold 100% equity interest in Ruijin Power Plant. We acquired the power plant in January, 2015 from HIPDC.
The coal supply for Ruijin Power Plant is obtained from Shanxi, Shaanxi, and partially imported coal. Ruijin Power Plant typically stores 110,000 tons of coal on site. In 2016,2018, Ruijin Power Plant obtained 6%32.4% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Ruijin Power Plant in 20162018 was RMB509.45 (2015: RMB555.52)RMB754.04 (2017: RMB713.93) per ton.
Ruijin Power Plant sells its electricity to Jiangxi Electric Power Company.
Anyuan Power Plant
Anyuan Power Plant "Replacing Small Units with Large Ones" Project ("Anyuan Power Plant") is located at Pingxiang City of Jiangxi Province. The plant has a total installed capacityofcapacity of 1,320 MW, consisting of two ultra supercriticalultra-supercritical units with second reheat cycle of 660 MW each. Anyuan Power Plant is the first project equipped with 660MW ultra supercritical unit with second reheat cycle. We acquired 100% equity interest ofin the power plant in January 2015.
The coal supply for Anyuan Power Plant is obtained from Gansu and Shanxi. Ruijin Power Plant typically stores 130,000 tons of coal on site. In 2016,2018, Anyuan Power Plant obtained 25%48.9% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Ruijin Power Plant in 20162018 was RMB546.5 (2015: RMB460.08)RMB699.12 (2017: RMB665.70) per ton.
Anyuan Power Plant sells its electricity to Jiangxi Electric Power Company.
Construction Project in Jiangxi Province

69
Linghuashan Wind Power
Linghuashan Wind Power Project Phase I. The projectPlant ("Linghuashan Wind Power") is located in the city of Ji'an of Jiangxi Province. Linghuashan Wind Power was approved by the Energy Administrationhas a total installed capacity of Jiangxi Province.100 MW, consisting of 50 turbines of 2MW each, which commenced operation in June and September 2017. We hold 100% equity interest in Linghuashan Wind Power.
Linghuashan Wind Power sells its electricity to Jiangxi Electric Power Company.
Gaolongshan Wind Power
Gaolongshan Wind Power is located in the city of the project. The project is planned to have anJi’an of Jiangxi Province. Gaolongshan Wind Power has a total installed capacity of 4880 MW, consisting of 2428 wind power turbines of 2 MW.2.2 MW each and 8 wind turbines of 2.3 MW each, which commenced operation in November 2018. We hold 100% equity interest in Gaolongshan Wind Power.
Power Plant in Anhui Province
Chaohu Power Plant
Huaneng Chaohu Power Plant (" Chaohu Power Plant") is located in Chaohu City in Anhui Province. Chaohu Power Plant has an installed capacity of 1,200 MW and consists of two 600 MW coal-fired generating units which commenced operation in 2008. We hold 60% equity interest in Chaohu Power Plant. We acquired the power plant in January, 2015 from HIPDC.
67
The coal supply for Chaohu Power Plant is obtained from Shandong and Gansu. Chaohu Power Plant typically stores 110,000 tons of coal on site. In 2016,2018, Chaohu Power Plant obtained 77%59.1% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Chaohu Power Plant in 20162018 was RMB479.8 (2015: RMB440.56)RMB645.84 (2017: RMB617.03) per ton.
Chaohu Power Plant sells its electricity to Anhui Electric Power Company.
Hualiangting Hydropower
Huaneng Hualiangting Hydropower Plant ("Hualiangting Hydropower") is located in Anqing City in Anhui Province. Hualiangting Hydropower has an installed capacity of 40 MW which commenced operation in 1981 and 1987. We hold 100% equity interest in Hualiangting Hydropower. We acquired the power plant in January, 2015 from Huaneng Group.
Hualiangting Hydropower sells its electricity to Anhui Electric Power Company.
Huaining Shijing Wind Power
Shijing Wind Power Plant in Huaining Country ("Huaining Wind Power") is located in Huaining Country, Anhui Province. Huaining Wind Power has a total installed capacity of 50 MW, consisting of 25 turbines of 2MW each, which commenced operation in June 2016. We hold 100% equity interest ofin the plant.
Huaining Wind Power sells its electricity to Anhui Electric Power Company.
Huaining Longchi Wind Power
Huaining Longchi Wind Power Plant ("Huaining Longchi Wind Power") is located in the city of the county of Huaining of Anhui Province. Huaining Longchi Wind Power has a total installed capacity of 99 MW, consisting of 45 turbines of 2.2MW each. We hold 100% equity interest in Huaining Longchi Wind Power.
Huaining Longchi Wind Power sells its electricity to Anhui Electric Power Company.

70
Power Plant in Fujian Province
Fuzhou Power Plant
Huaneng Fuzhou Power Plant ("Fuzhou Power Plant") is located on the south bank of the Min River, southeast of the city of Fuzhou. Fuzhou Power Plant has been developed in three phases. The Fuzhou Power Plant Phase I and Phase II utilize four 350 MW coal-fired generating units with an installed capacity of 1,400 MW, and commenced operations in 1988 and 1999, respectively. The Fuzhou Power Plant Phase III consists of two 600 MW generating units with a total installed capacity of 1,200 MW, and commenced operations in 2010 and 2011, respectively. The capacity of Unit V and Unit VI of the Fuzhou Power Plant Phase III was expanded to 660 MW per unit since January 2012. We hold 100% equity interest in Fuzhou Power Plant.
The coal supply for Fuzhou Power Plant is obtained from several coal producers located mostly in Northern Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and by ship down to the east coast of China and up to the Min River to a wharf located at Fuzhou Power Plant. We own and maintain the wharf, which is capable of handling vessels of up to 20,000 tons and of unloading 10,000 tons to 15,000 tons of coal per day. Fuzhou Power Plant typically stores 180,000 tons of coal on site.
In 2016,2018, the Fuzhou Power Plant obtained 13%61.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Fuzhou Power Plant in 20162018 was RMB394.11 (2015: RMB431.36)RMB563.21 (2017: RMB561.28) per ton.
Fuzhou Power Plant sells its electricity to Fujian Electricity Power Company.
Construction Projects in Fujian ProvinceChangle Photovoltaic
Luoyuan Power Plant. LuoyuanChangle 10 MW Photovoltaic Power Plant was approved by("Changle Photovoltaic") is located in the NDRCcity of Fuzhou of Fujian Province. It has an installed capacity of 10 MW, which commenced operation in December 2014.June 2017. We hold 100% equity interest in the project. The project is planedChangle Photovoltaic.
Changle Photovoltaic sells its electricity to have an installed capacity of 1,320 MW, consisting of two ultra supercritical coal-generating units of 660 MW each.
68
Fujian Electric Power Company.
Power Plants in Guangdong Province
Shantou Power Plant
Huaneng Shantou Coal-Fired Power Plant ("Shantou Power Plant") had originally been developed and constructed by HIPDC which transferred all its rights and interests therein to us effective on December 31, 1994. Located on the outskirts of the city of Shantou, Shantou Power Plant was set up with the support of the Shantou municipal government and the Guangdong provincial government. Shantou Power Plant Phase I consists of two 300 MW coal-fired generating units with boilers, which commenced operation in January 1997. Shantou Power Plant Phase II consists of one 600 MW coal-fired generating unit and commenced operation in October 2005. We hold 100% equity interest in Shantou Power Plant.
The coal supply for Shantou Power Plant is obtained from several coal producers located mostly in the northern area of Shanxi Province. The coal is transported by rail from the mines to Qinhuangdao port and by ship down the east coast of China to the wharf located at Shantou Power Plant, which is maintained by the Shantou Port Authority and is capable of handling 35,000 ton vessels. The Shantou Power Plant typically stores 300,000 tons of coal on site.
In 2016,2018, the Shantou Power Plant obtained 16%26.0% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Shantou Power Plant in 20162018 was RMB444.61 (2015: RMB430.14)RMB584.24 (2017: RMB585.02) per ton.
Shantou Power Plant sells its electricity to Guangdong Electric Power Company.

71
Haimen Power Plant
Huaneng Haimen Power Plant is located in Shantou City, Guangdong Province. Haimen Power Plant has an installed capacity of 4,144 MW and consists of four 1,036 MW generating units. The first two generating units ("Haimen") commenced operation in July 2009 and October 2009, respectively. We hold 100% equity interest in the first two generating units. The other two generation units commenced operation at the beginning of 2013 ("Haimen Power"). We hold 80% equity interest in the other two generating units.
The coal supply for Haimen Power Plant is mainly imported from Indonesia. Haimen Power Plant typically stores 400,000 tons of coal on site. In 2016,2018, Haimen Power Plant obtained 100%59.5% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Haimen Power Plant in 20162018 was RMB476.75 (2015: RMB498.17)RMB596.47 (2017: RMB611.14) per ton.
Haimen Power Plant sells its electricity to Guangdong Electric Power Company.
Shantou Photovoltaic
69
Shantou Power Plant 17 MW Photovoltaic Power Plant ("Shantou Photovoltaic") is located in Shantou City, Guangdong Province. It has an installed capacity of 17 MW, which commenced operation in September 2016. We hold 100% equity interest in the Project.
Shantou Photovoltaic sells its electricity to Guangdong Electric Power Company.
Power Plants in Yunnan Province
Diandong Energy
Yunnan Diandong Energy Limited Company ("Diandong Energy") is located in Qujing City, Yunnan Province. Diandong Energy has an installed capacity of 2,400 MW and consists of four 600 MW generating units which commenced operation in February 2006, July 2006, November 2006 and May 2007, respectively. We hold 100% equity interest in Diandong Energy.
The coal supply for Diandong Energy is mainly obtained from Yunnan and Guizhou Provinces. Diandong Energy typically stores 1,200,000 tons of coal on site. In 2016,2018, Diandong Energy obtained 20%none of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price for Diandong Energy in 20162018 was RMB342.39 (2015: RMB371.25)RMB540.19 (2017: RMB583.82) per ton.
Diandong Energy sells its electricity to Yunnan Electric Power Company.
Yuwang Energy
Yunnan Diandong Yuwang Energy Limited Company ("Yuwang Energy") is located in Qujing City, Yunnan Province. Yuwang Energy has an installed capacity of 1,200 MW and consists of two 600 MW generating units which commenced operation in July 2009 and February 2010, respectively. We hold 100% equity interest in Yuwang Energy.
The coal supply for Yuwang Energy is mainly obtained from Yunnan and Guizhou Provinces. Yuwang Energy typically stores 600,000 tons of coal on site. In 2016,2018, Yuwang Energy obtained 100%7.5% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price of coal for Yuwang Energy in 20162018 was RMB380.58 (2015: RMB341.80)RMB507.68 (2017: RMB455.69) per ton.
Yuwang Energy sells its electricity to Yunnan Electric Power Company.
Fuyuan Wind Power
Fuyuan Wind Power Plant ("Fuyuan Wind Power") is located in the Fuyuan County of Qujing Municipality of Yunnan Province. Fuyuan Wind Power consists of Wenbishan Wind Power, which commenced operation in November 2014 with 20 wind power turbines of 2 MW each, Yibasan Wind Power, which commenced operation in

72
2014 with 24 wind power turbines of 2 MW each, and Shengjing Wind Power, which commenced operation in December 2016 with 24 wind power turbines of 2 MW each. We hold 100% equity interest in Fuyuan Wind Power.
70
Fuyuan Wind Power sells its electricity to Yunnan Electric Power Company.
Construction Project in Yunnan Province
Fuyuan Wind Power also hasA new wind projects under construction,project with an installed capacity of 48 MW commenced operation in October and November 2017, consisting of 24 wind power turbines of 2 MW each. We hold 100% equity interest in the project.Fuyuan Wind Power.
Fuyuan Wind Power sells its electricity to Yunnan Electric Power Company.
Power Plants in Hainan Province
Haikou Power Plant
Huaneng Haikou Power Plant ("Haikou Power Plant") is located in Haikou City in Hainan Province. Haikou Power Plant has an installed capacity of 936 MW and consists of two 138 MW coal-fired generating units which commenced operation in 1999, 2000, and two 330 MW coal-fired generating units which commenced operation in 2006. We hold 91.8% equity interest in Haikou Power Plant. We acquired the power plant in January, 2015 from Huaneng Group.
The coal supply for Haikou Power Plant is mainly obtained from Inner Mongolia, Shanxi, and partially imported coal. Haikou Power Plant typically stores 120,000 tons of coal on site. In 2016,2018, Haikou Power Plant obtained 19%33.6% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price of coal for Haikou Power Plant in 20162018 was RMB393.68 (2015: RMB428.82)RMB515.21 (2017: RMB498.76) per ton.
Haikou Power Plant sells its electricity to Hainan Electric Power Company.
Dongfang Power Plant
Huaneng Dongfang Power Plant ("Dongfang Power Plant") is located in Dongfang City in Hainan Province. Dongfang Power Plant has an installed capacity of 1,400 MW and consists of four 350 MW coal-fired generating units which commenced operation in 2009, 2012. We hold 91.8% equity interest in Dongfang Power Plant. We acquired the power plant in January, 2015 from Huaneng Group.
The coal supply for Dongfang Power Plant is mainly obtained from Shanxi and partially imported coal. Dongfang Power Plant typically stores 160,000 tons of coal on site. In 2016,2018, Dongfang Power Plant obtained 8%38.2% of its total consumption of coal from annual contracts and the remainder from the open market. The average coal purchase price of coal for Dongfang Power Plant in 20162018 was RMB385.97 (2015: RMB431.69)RMB514.48 (2017: RMB502.22) per ton.
Dongfang Power Plant sells its electricity to Hainan Electric Power Company.
Nanshan Co-generation
Huaneng Nanshan Co-generation Power Plant ("Nanshan Co-generation") is located in Sanya City in Hainan Province. Nanshan Co-generation has an installed capacity of 132 MW which commenced operation in 2003. We hold 91.8% equity interest in Nanshan Co-generation. We acquired the power plant in January 2015 from Huaneng Group.
Nanshan Co-generation sells its electricity to Hainan Electric Power Company.
Gezhen Hydropower Plant
71
Huaneng Gezhen Hydropower Plant ("Gezhen Hydropower Plant") is located in Dongfang City in Hainan Province. Gezhen Hydropower Plant has an installed capacity of 82 MW which commenced operation in 2009. We hold 91.8% equity interest in Gezhen Hydropower Plant. We acquired the power plant in January, 2015 from Huaneng Group.
Gezhen Hydropower Plant sells its electricity to Hainan Electric Power Company.

73
Wenchang Wind Power
Huaneng Wenchang Wind Power Plant ("Wenchang Wind Power") is located in Wenchang City in Hainan Province. Wenchang Wind Power has an installed capacity of 51.5 MW and consists of 33 turbines with each capacity of 1.5 MW which commenced operation in 2008, and one turbine with a capacity of 2 MW which commenced operation in 2015. We hold 91.8% equity interest in Wenchang Wind Power. We acquired the power plant in January, 2015 from Huaneng Group.
Wenchang Wind Power sells its electricity to Hainan Electric Power Company.
Dongfang Photovoltaic
Dongfang Photovoltaic Power Plant ("Dongfang Photovoltaic") is located in Dongfang City in Hainan Province. Dongfang Photovoltaic has an installed capacity of 12 MW which commenced operation in July 2016. We hold 91.8% equity interest in Dongfang Power Plant.
Dongfang Photovoltaic sells its electricity to Hainan Electric Power Company.
Construction ProjectChengmai Photovoltaic
Chengmai Photovoltaic Power Plant ("Chengmai Photovoltaic") is located in Guangxi Province
Distribution Energy Projectthe county of Guilin World Tourism City. Distribution Energy ProjectChengmai of Guilin World Tourism City was approved by the DevelopmentHainan Province. Chengmai Photovoltaic has an installed capacity of 25 MW and Reform Commission of Guangxi Autonomous.40 MW which commenced operation in June 2017 and September 2018, respectively. We hold 100%91.8% equity interest in Chengmai Photovoltaic.
Chengmai Photovoltaic sells its electricity to Hainan Electric Power Company.
Power Plant in Guangxi Autonomous Region
Guilin Distributed Energy
Guilin Distributed Energy Power Plant ("Guilin Distributed Energy") is located in the project. The project consistscity of four co-generating unitsGuilin of 42Guangxi Autonomous Region. Guilin Distributed Energy has an installed capacity of 210 MW three dual pressure waste-heat boilers, three condensing turbo-generating units of 21 MW and one back-pressure turbo- generating unit of 6 MW.which commenced operation in December 2017. We hold 80% equity interest in Guilin Distributed Energy.
Guilin Distributed Energy sells its electricity to Hainan Electric Power Company.
Power Plant in Guizhou
Panxian Wind Power
Panxian Wind Power ("Panxian Wind Power") is located at Panxian county of Guizhou Province. It commenced operation in December 2015, with an installed capacity of 24 MW, consisting of 12 wind power turbine of 2 MW each. We hold 100 % equity interest in Panxian Wind Power.
Panxian Wind Power sells its electricity to Guizhou Electric Power Company.
Construction Project in Guizhou ProvincePanxian Dapashan Wind Power
Panxian Dapashan Wind Power Project.Plant ("Panxian Dapashan Wind Power") is located in the county of Pan of Guizhou Province. Panxian Dapashan Wind Power Project was approved byhas an installed capacity of 24 MW and consists of 12 turbines with each capacity of 2 MW which commenced operation in November and December 2017. We hold 100% equity interest in Panxian Dapashan Wind Power.
Panxian Dapashan Wind Power sells its electricity to Guizhou Electric Power Company.
Panxian Jiaoziding Wind Power
Panxian Jiaoziding Wind Power Plant ("Panxian Jiaoziding Wind Power") is located in the Energy Administraioncounty of Pan of Guizhou Province. We hold 100 % equity interest in the project. The project is planned to havePanxian Jiaoziding Wind Power has an installed capacity of 48 MW and consists of 24 turbines

74
with each capacity of 2 MW each. 12 turbines are operationalwhich commenced operation in November and 12 turbines are currently under construction.December 2017. We hold 100% equity interest in Panxian Jiaoziding Wind Power.
Panxian Jiaoziding Wind Power Project. Panxian Jiaoziding Windsells its electricity to Guizhou Electric Power Project was approved by the Energy Administraion of Guizhou Province. We hold 100 % equity interestCompany.
Power Plant in Ningxia
Ruyi Helan Rooftop Photovoltaic
Ruyi Helan Rooftop Photovoltaic Power Plant ("Ruyi Helan Rooftop Photovoltaic") is located in the project. The project is planned to havecounty of Helan of Ningxia Autonomous Region. Ruyi Helan Rooftop Photovoltaic has an installed capacity of 4819.8 MW consists of 24 turbines of 2 MW each.which commenced operation in June 2017. We hold 40% equity interest in Ruyi Helan Rooftop Photovoltaic.
72Ruyi Helan Rooftop Photovoltaic sells its electricity to Ningxia Electric Power Company.
Power Plant in Singapore
Tuas Power
With a licensed generating capacity of 2,670MW, Tuas Power is one of the three largest power generation companies in Singapore. It currently has an installed operation generating capacity of 2,609MW, comprising of 1,876 MW gas-fired combined cycle generating units, 133 MW of coal-biomass fired steam turbine generating units and 600 MW of oil-fired steam generating unit.
Supply of coal is procured from coal producers in Indonesia via two long-term coal supply contracts with 10 years and 15 years term respectively.respectively, and short-term contracts. Supply of gas is obtained from Pavilion Gas Pte Ltd, Sembcorp Gas Pte Ltd and Shell Gas Marketing Pte Ltd (formally known as BG Singapore Gas Marketing Pte Ltd).BG Singapore Gas Marketing Pte Ltd.. Oil supply, if required, is obtained through the spot market.
Power Plant in Pakistan
Sahiwal Power Plant
Sahiwal Power Plant is located near the city of Sahiwal in Punjab Province. It commenced operation of two 660 MW coal-biomass fired steam turbines in 2017. We indirectly hold 40% equity interest in Sahiwal Power Plant.
Competition and Dispatch
All power plants in China are subject to dispatch conducted by various dispatch centers. A dispatch center is required to dispatch electricity pursuant to the Regulations on the Administration of Electric Power Dispatch Networks and Grids, issued by the State Council with effect from November 1, 1993, and in accordance with its agreements with power plants subject to its dispatch. Power generation companies are also required to enter into on-grid dispatch agreements with power grid companies. As a result, there is competition for favorable dispatch treatment in the PRC electric power industry, especially during the off-peak load periods. More efficient power plants usually operate at higher output than less efficient power plants. We believe that in order to increase system stability, large and efficient power plants such as ours will be preferred as base load plants to generate power for the grids to which they connect. We believe that our dispatch arrangements with the local power corporations and dispatch centers, superior quality equipment, lower coal consumption rate, higher efficiency of plant operation, lower emission levels and larger capacity represent competitive advantages in the markets in which we operate.
Since 2002, we have been facing competition from four other major power generation groups: China Power InvestmentDatang Corporation Ltd., China Huadian Power Corporation, CHN Energy (established through the merge of China Guodian Power Corporation and Shenhua Group Corporation Limited)  and State Power Investment Corporation (formerly known as China Datang Power Corporation,Investment Corporation), which were created following the break-up of the former State Electric Corporation in 2002. Although we were not affected by this reform measure, as we have developed good working relationship with the dispatch centers and the relevant government departments in the areas where our power plants are located, there can be no assurance that such good working relationships will not be adversely affected as more power generation companies compete for favorable dispatch treatment.
As power generation companies were separated from power grid companies and more competitors entered into the market, the SERC issued the Interim Measures Regarding Promotion of Openness, Fairness and

75
Equitableness of Power Dispatch, requiring power dispatch centers to treat all competitors indiscriminately in respect of dispatch administration and information disclosure, except in cases where safe and stable operation of the electric power system requires different treatment.
In 2008, with the purpose of improving energy usage efficiency, the government implemented an electricity-optimized dispatch policy in Henan Province, Sichuan Province, Jiangsu Province, Guangdong Province and Guizhou Province on a pilot basis, and plans to roll out to others if the trial operation is successful. In addition, as of December 31, 2014, in all regions in which we operate power plants, the government's power administrative departments make power generation plan policies with the aim to improve the planned utilization hours of the environment-protecting and energy-saving units. In 2015, the NDRC and China Energy Administration jointly issued the Guidelines on Improving Electric Power Operations and Deepening Clean Energy Generation, which confirms a system that aims to ensure the full-priced acquisitions of renewable energy and ensure that the hours of usage for high-efficiency energy-saving generators be significantly higher than that for coal-fired generators. And theThe Guidelines also demandsdemand, within a certain time period, an increase of the hours of usage for coal-fired generators, of which the emission level is close to or reaches the cap level of gas turbine.
73
In 2016, China National Energy Administration issued Guidelines on Improving Clean Energy Consumption and Distribution in Northern China, Notice on Issuing the Measures for the Administration of the Guaranteed Buyout of Electricity Generated by Renewable Energy Resources, Pilot Program of Local Clean Energy Consumption and Distribution in Gansu,inGansu, Inner Mongolia and Jilin, and Provisionary Measures for Priority Dispatch of Renewable Peaking Power Generation Units, which require an improvement on clean energy consumption and distribution.  For
In 2017, NDRC and NEA issued Circular on Orderly Opening Up the purposes of enhancing the dispatch priority of energy that is produced with high-efficient and low emission, China National Energy Adminstration also requested for comments in connection with the proposed Measures for the Administration of the Guaranteed Buyout of Electricity Generated by Nuclear Power, Guildance on High-efficiency, Low Emission Energy, Guildelines on Prioritizing Utilization and Dispatching and the Announcement on the Orderly Reform on Power Generation and Consumption PlanningPlans.,  Interim Measures for Guaranteeing the Safe Consumption of Nuclear Power, Pilot Rules on Inter-regional Spare Renewable Energy Electricity Power Stock Trading, Circular on the Establishment of Pilot Electricity Power Stock Exchange, Circular on Promoting Hydropower Consumption in Southwest China, and Solutions to Abandoning Hydro, Wind and Solar Energy, to promote the development of the power stock exchange and renewable power consumption and emphasize the low-carbon energy scheduling.
In 2018, NDRC and NEA issued Circular on Promoting the Capability to Adjust the Power System and Plan for Consumption of Clean Energy (2018-2020), Circular on the Renewable Power Quota System and Notice on Actively Promoting Market-oriented Power Exchange and Further Improving the Trading Mechanism to futher promote the consumption of renewable energy and increase the utilization rate of the renewable energy. From 2018, users from coal, steel, non-ferrous metal and construction materials industries, among others, shall participate in the market-oriented power exchange process instead of applying the catalog price. Users are encouraged to negotiate with power generating enterprises to establish the “baseline with floating adjustment” pricing mechanism.
Competition and Dispatch in Singapore
Following the introduction of LNG into Singapore, new players as well as incumbents have invested in new gas-fired generating capacities to compete in the Singapore electricity market. Tuas Power competes in the NEMS using its portfolio of gas-fired, coal-biomass fired and oil-fired generating units. It was able to maintain a market share of approximately 21.5%21.1% in the NEMS for 2016.2018. Its major competitors include Senoko Energy (formerly Senoko Power) which is owned by a Japanese/French consortium led by Marubeni Group, YTL PowerSeraya that is owned by YTL Group of Malaysia, SembCorp Cogen and Keppel Merlimau Cogen and PacificLight Power Pte Ltd. A new entrant, Tuaspring, entered the market in 2015. In 2017, ExxonMobil and Singapore Refining Company introduced additional capacity of 158MW. Tuas Power's investment in its new combined cycle will allowportfolio of generating units allows it to maintain its leadership position in Singapore's power industry.
In the NEMS, power generation companies compete to generate and sell electricity every half-hour by offering their capacity (specifying price/quantity pairs). The EMC, the operator of Singapore's wholesale electricity market, determines the least-cost dispatch quantities and the corresponding market-clearing or spot prices based on the offers made by power generation companies. The spot prices in the NEMS reflect the least-cost market solution for the dispatch of energy and provision of operating reserves. In general, this means that each power generation company that submitted an offer below the spot price will be dispatched, and a power generation company that submitted an offer above the spot price will not be dispatched. The spot price that a power generation company

76
receives is a nodal price, which may vary according to their location on the network to reflect the cost of transmission losses or network constraints.
Environmental Regulation
We are subject to the PRC Environmental Protection Law, theand relevant laws and regulations of the State Council issued thereunder, the PRC Law on the Prevention and Treatment of Water Pollution, the PRC Law on the Prevention and Treatment of Air Pollution, the Emission Standard of Air Pollutants for Thermal Power Plants thereunder and the PRC Law on Ocean Environment Protection (collectively the "National Environmental Laws") and the environmental rules promulgated by the Local Governments in whose jurisdictions our various power plants are located (the "Local Environmental Rules"). According to the National Environmental Laws, the State Environmental Protection BureauMinistry of Ecology and Environment sets national environmental protection standards and local environmental protection bureaus may set stricter local standards. Enterprises are required to comply with the stricter of the two standards.
At present, new projects are subject to the environmental evaluation approval. The project proposal is required to be submitted to the Ministry of Environmental Protection of PRCEcology and Environment for approval.approval, save for those projects can be approved by local governments.
Effective July 1, 2003, all power plants in China became subject to the pollutant discharge levy system, pursuant to which discharge fees are levied based on the actual amount of pollutants discharged. As a result, all of our power plants are now required to pay discharge fees in such manner. Since 2008, certain provinces have raised the rates of waste disposal fees. In 2014, 20152016, 2017 and 2016,2018, we paid to the local governments total discharge fees of approximately RMB387RMB372 million, RMB311RMB308 million and RMB372RMB62 million, respectively. In 2018, the Environmental Protection Tax Law of People’s Republic of China came into effect, and all of our plants have been paying the environmental protection tax since. Under the Environmental Protection Tax Law, the unit tax(fee) rates rise significantly in various regions. We took the low emission modification and other measures and actively sought tax deduction treatments, which helped us to cut our environmental protection tax liabilies in the amount of RMB50 million.
In 2011, the PRC Government promulgated a New Emission Standards of Air Pollutants for Thermal Power Plants, which implement more stringent standards on discharge of polluting substances by thermal power plants. These restrictive standards govern both the total sulfur dioxide and nitrous oxide emissions from the power
74
plant and the emission density of each chimney, and also require thermal power plants to equip all units with denitrification facilities by the end of 2015.chimney.
In September 2013, the State Council issued the Air Pollution Prevention Action Plan (the "Plan"), setting forth stricter requirements for air pollution prevention and control. Local government departments have released local rules and regulations under the Plan, some of which require higher emission standards than the national ones. Carbon emission trading has been conducted in certain regions on a trial basis and could be gradually introduced to an expanded market in the future. On July 1, 2014, the new pollutants emission standards for thermal power plants and the dust emission standards in key regions will also come into effect. In September 2014, the NDRC, the Ministry of Environmental ProtectionEcology and Environment and China National Energy Administration jointly issued the 2014-2020 Action Plan for Energy Saving, Emission Reduction and Renovation of Coal-fired Generation Units, imposing more strict requirements for efficient and clean development of coal-fired generating plants. In December 2016, the State Council issued the Comprehensive Work Plan for Conserving Energy and Reducing Emissions for the 13th Five-Year, putingputting forward new goals and requirements for energy saving and emission reduction. All of our plants in east coastal regions have completed the renovation.
In order to meet with the requirements of the New Emission Standards, we have installed flue gas desulphurization ("FGD") facilities and denitrification facilities with all of our newly constructed generating units. We have also carried out sulfur disposal reform on the existing generating units. As of the end of 2012, we have installed and operated desulphurization facilities on all our existing coal-fired generating units. By the end of 2014, all coal-fired generating units of the Company have been renovated to include denetrificationdenitrification facilities.
In order to reduce fly ash, we use very high-efficiency electrostatic precipitators and conduct efficiency improvement and renovations according to increasingly strict state and local emission standards. Each power plant is also equipped with a wastewater treatment facility to treat water used by the power plant before it is released into the river or the sea. We pay discharge fees on the basis of measurements made at discharge points of each plant where waste is released. All of the disposal equipment and facilities for sulfur dioxide, fly ash, wastewater, nitrogen oxides, smoke dust, wastewater and noise in our existing power plants completely satisfy the existing national standards.

77
In addition, according to the State's plan of implementing ultra-low emission of coal-fired generating units, the Company has carried out technological upgrades as planned for all coal-fired generating units in 2018, completing the task required by the State early.
We believe we have implemented systems that are adequate to control environmental pollution caused by our facilities. In addition to the measures identified above, each power plant has its own environment protection office and staff responsible for monitoring and operating the environmental protection equipment. The environmental protection departments of the local governments monitor the level of emissions, sometimes through online monitoring devices recognized by such local governments, and base their fee assessments on the results of their tests.
We believe our environmental protection systems and facilities for the power plants are adequate for us to comply with the currently effective national and local environmental protection regulations. It is expected that the PRC Government will impose additional and stricter regulations to implement the emission plan which would require additional expenditure in compliance with environmental regulations.
Environmental Regulation in Singapore
Tuas Power's generation operations are subject to Singapore's Environmental Protection and Management Act and Environmental Public Health Act. The former sets out requirements pertaining to control of pollution and management of hazardous substance while the latter focuses mainly on proper waste management.
Tuas Power Station
To address the environmental concerns and regulatory requirements, Tuas Power Station has put in place an environmental management system.system, which is certified to ISO14001 standard. All generating units are equipped with pollution control facilities. Stage I steam plant burn low sulfur content fuel oil and employ an electro-precipitator to control sulfur dioxide and particulate emissions. Stage II combined-cycle plants burn natural gas and are fitted with low-nitrogen oxide burners to control nitrogen oxide emissions. Source emission tests are conducted annually by National Environment Agency (NEA) accredited contractors and the results are submitted to NEA Pollution Control Department.
75
Tuas Power Station has a dedicated wastewater treatment plant to treat its oily wastewater and process wastewater prior to discharge into the sea. The treatment processes are automated to prevent accidental adverse discharge and critical parameters are monitored on a real-time basis. Trade effluent testing is performed annually and the results are shared with the Pollution Control Department.
Land contamination is prevented through well-designed storage and containment procedures. Specific areas for storage of waste and hazardous substances are designated within the power plant.
Waste generated in Tuas Power Station plants is identified and managed accordingly. Waste with residual value, such as waste oil, is resold to licensed collectors for reuse while other waste is disposed through licensed disposal contractors.
Hazardous substances which have potential to cause environmental pollution are controlled within the power plant compound. A hazardous substance permit, issued by the Pollution Control Department, is required to store the hazardous substances in the premises. Our personnel who handle these chemicals are properly trained and our storage facility for hazardous substances are specifically designed to prevent and mitigate the likelihood and impact of any abnormal releases. Regular audits are conducted to ensure these hazardous substances are managed properly and the findings and recommendations for improvements are reported to the Pollution Control Department.
TMUC
TMUC utilizes an efficient cogeneration process where up to 80% of the useful energy from the plant is used to produce steam for industrial customers and the remaining energy is converted to electricity for internal use and transmission to the national grid. In 2016,2018, the energy split between heat and power is 45%48% and 55%52% respectively, and the overall plant efficiency averaged at 59%61%.

78
The TMUC plant is designed to comply with stringent environmental standards set by the local authority. TMUC has put in place a robust environmental management system and it is certified to ISO14001 standard. TMUC adopts the circulating fluidized bed boiler technology that enables use of high percentage of carbon neutral biomass (palm kernel shell and woodchips) co-fired with clean coal (low sulphur and low ash) to reduce carbon footprint significantly to the same level as oil-fired plant and with lower sulphur and nitrogen oxides emission. High efficiency bag filters are installed to ensure low particulates emission.
Coal, biomass and ash handling, transfer and storage systems at TMUC are fully enclosed to prevent any fugitive dust during unloading, storage and handling operation. Coal and ash are stored in silo while biomass is stored in enclosed warehouse.
Fly ash and bed ash generated from the CFB boilers are fully recycled and processed for industrial use as value-added construction materials.in cement and concrete applications.
Oily wastewater, and coal/ash washing wastewater and industrial wastewater received from customers are treated prior to discharge. Online monitoring of oil-in-water, and suspended solids (through turbidity meter) and chemical oxygen demand (COD) are carried out for oily wastewater, and coal/ash washing wastewater and industrial wastewater respectively to prevent accidental discharge.ensure compliance with environmental regulation. Chemical/regeneration wastewater is neutralized prior to discharge. Online monitoring of pH is conducted to prevent accidental discharge. Stop-gates are strategically installed at drain to prevent accidental discharge of poor quality effluent/water from enteringto the sea.
Insurance
We currently maintain property all-risks insurance and machinery-breakdown insurance for all of our power plants, and construction all-risks insurance or erection all-risks insurance for all of our newly built and expansion projects as well as large-scaled upgrading projects. Our current insurance coverage on our property, plant and equipment (including construction all-risk insurance) is mainly maintained with Yongcheng Property and Casualty Insurance Company, and co-insured by PICC Property and Casualty Company Ltd. and China Pacific Property Insurance Co., Ltd., which amounted to approximately RMB412.93RMB571.27 billion. In 2016,2018, we renewed the liabilities insurance for our directors and officers with coverage of US$10 million.
76
We do not maintain any third-party liability insurance to cover claims in respect of bodily injury or property or environment damage arising from accidents on our property or relating to our operation other than the third-party additional risk insurance included in construction all-risk insurance or erection all-risk insurance. We do not usually carry business interruption insurance either, which is not customarily carried by power companies in the PRC. We believe that our insurance coverage is adequate and is standard for the power industry in China. Please refer to the section entitled "Risk factors – Risks relating to our business and the PRC's power industry – Operation of power plants involves many risks and we may not have enough insurance to cover the economic losses if any of our power plant's ordinary operation is interrupted."
Tuas Power purchases key insurance policies, such as industrial all-risks insurance (including business interruption insurance coverage), public and products liability insurance, directors' and officers' liability insurance, pollution legal liability insurance and marine cargo insurance. Total insured value under the industrial all-risks insurance is US$4.53.0 billion for 2017.2019.
ITEM 4A    Unresolved Staff Comments
ITEM 4AUNRESOLVED STAFF COMMENTS
None.
ITEM 5   Operating and Financial Reviews and Prospects
A.           
ITEM 5OPERATING AND FINANCIAL REVIEWS AND PROSPECTS
A.General
The principal activities of the Company are investment,development in and construction, operation and management of power plants.plants in China. The Company provides consistent and reliable electricity supply to customers through grid operators where its operating plants are located. The Company is committed to scientific development through increasing economic efficiency, enhancing returns for shareholders, conserving resources and protecting the environment. The Company

79
also attaches importance to social responsibilities and makes an active contribution to the building of a harmonious society.
Since its incorporation, the Company has continued to expand its operational scale. The Company has been a leader in its industry in terms of competitiveness, resource utilization efficiency and environmental protection. The Company is Asia's largest listed power producer and China's most dynamic power generator. Its power generation operations are widely located with coverage in the Northeast China Grid, the Northern China Grid, the Northwest China Grid, the Eastern China Grid, the Central China Grid, the Southern China Grid, and the overseas market in Singapore.
Looking back in 2016, with strong support from its shareholders and the employees,In 2018, the Company made active and concerted efforts to respondproactively adapted to the changes in power, coalthe market and capital markets by expanding overseas market share, improving marketing analysis and enhancing internal management with focuses on key operations, thorough planning and sound internal control. These efforts have contributed toanticipated the growthdynamics of the Companyreforms in various aspectsnational economy and power market system to promptly realign our operating strategy. Throughout the year, we maintained stable operation of safe and clean production, constantly optimised the power structure, realised increases in 2016. Throughout 2016,both quantity and price in power generation, achieved excellent marketing results, effectively controlled the Companyfuel cost, and steadily carried out capital operation. As a result, we have satisfactorily achieved our annual business objectives and maintained itsour leading position in major technological and economic indicators and utilization hours through safe production and active marketing activities. Its fuel management was strengthened and financial costs were effectively controlled. Marked improvement was noticeable in the Company's growth because of its active power generation reorganizing efforts. The Company has also made new developments in energy saving, ultra-low emission and technological renovation, diligently fulfilling its social responsibilities as a reliable provider of sufficient, stable and environmentally-friendly power to the society.industry.
Critical accounting policies
The Company and its subsidiaries have identified the policies below as critical to our business operations and the understanding of our results of operations. The impact of and any associated risks related to these policies on the business operations are discussed throughout the Operating and Financial Reviews and Prospects where such policies affect our reported and expected financial results. For a detailed discussion on the application of these and other accounting policies, see Note 2 to the Financial Statements in Item 18 of this Annual Report on Form 20-F.
77
Note that our preparation of this Annual Report on Form 20-F requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amount of revenue and expenses during the reported periods. There can be no assurance that actual results will not differ from those estimates.
Depreciation of property, plant and equipment
Depreciation of property, plant and equipment is provided based on book value of assets less estimated residual value over estimated useful life using a straight-line method. For thethese impaired property, plant and equipment, depreciation is provided based on book value after deducting the impairment provision over estimated useful life of assets.asset. The estimated useful lives are as follows:
 20162018
Dam8 – 50 years
Port facilities20 – 40 years
Buildings8 – 30 years
Electric utility plant in service5 – 30 years
Transportation facilities8 – 27 years
Others5 – 14 years
Where parts of an item of property, plant orand equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. At the end of each year, the Company and its subsidiaries review the estimated useful life,lives, residual valuevalues and the depreciation method of the property, plant and equipment and make an adjustment when necessary.
Useful life of power generation license
The Company and its subsidiaries acquired the power generation license as part of the business combination with Tuas Power. The power generation license is initially recognized at fair value at the acquisition date. The license has an indefinite useful life and is not amortized. The assessment that the license has an indefinite useful life is based on the expected renewal of power generation license without significant restriction and cost, together with the consideration on related future cash flows generated and the expectation of continuous operations. It is tested annually for impairment and carried at cost less accumulated impairment loss. Useful life of the power generation license is reviewed by the Company and its subsidiaries each financial period to determine whether events and circumstances continue to support the indefinite useful life assessment.

80
Impairment of non-financial assets
The carrying amounts of property, plant and equipment, intangible assets with definite useful lives, land use rights, mining rights and long-term equity investments not accounted for as financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill, and indefinite-lived intangible assets and intangible assets not yet available for use are tested for impairment annually regardless of whether there are indications of impairment or more frequently if events or changes in circumstances indicate a potential impairment. An impairment loss is recognized if the carrying amount of an asset or cash-generating unit ("CGU") exceeds its recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less cost to sell. For impairment testing, assets are grouped together into the smallest group of assets that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.
Subject to an operating segment ceiling test, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes.
78
Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
Impairment losses are recognized in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs of disposal (if measurable) or value in use (if determinable).
An impairment loss in respect of goodwill is not reversed. Except for goodwill, all impaired non-financial assets are subject to review for possible reversal of impairment at each reporting date. A reversal of an impairment loss is limited to the asset's carrying amount that would have been determined had no impairment loss been recognized in the prior year. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized.
Deferred income tax

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

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

81
The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available.

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

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

(2)Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax authority of the Company and its subsidiaries.
Business combination
Principal accounting policies
The IASB has issued a new standard and a number of amendments to IFRSs that are first effective forFor the current accounting period ofbusiness combinations undertaken by the Company and its subsidiaries. Nonesubsidiaries, the Company recognises the assets acquired and the liabilities assumed based on their estimated fair value on the date of these new standardacquisition. Any excess of purchase consideration over the estimated fair values of acquired identifiable net assets is recorded goodwill. The contingent consideration of the Company in the business combination is recognised as a financial asset at fair value through profit or developmentsloss (included in other non-current assets and other receivables and assets).
The Company makes judgements and estimates in relation to the fair value allocation of the purchase price and the contingent consideration from business combination. The fair value of acquired assets and assumed liabilities and the contingent consideration are determined using valuation techniques. Estimating the fair value assigned to each class of acquired assets and assumed liabilities and the contingent consideration are based on expectations and assumptions, in particular in relation to the future sales volumes and the related revenue growth rate, future on-grid tariffs, future capital expenditure, future fuel prices, future other operating costs and the discount rates applied.
A change in the amount allocated to identifiable net assets would have hadan offsetting effect on the amount of goodwill recognised from the acquisition and would change the amount of depreciation and amortisation expense recognised related to those identifiable net assets. And outcomes within the next financial period that are different from assumptions could require a material effect on howadjustment to the Company and its subsidiaries’ results and financial position for the current or prior periods have been prepared or presented. The Company and its subsidiaries have not applied any new standard or interpretation that is not yet effective for current accounting period.carrying amounts of contingent consideration.
New accounting pronouncements
For a detailed discussion of new accounting pronouncements, see Note 2(ab)2(ag) to the Financial Statements.
B.          
B.Operating results
Our financial statements are prepared under IFRS as issued by IASB. The following management's discussion and analysis is based on the financial information prepared under IFRS.
Year ended December 31, 20162018 compared with year ended December 31, 20152017
 
For the Year Ended
December 31,
    
 For the Year Ended December 31,           Increased/ 
 2016  2015  
Increased/
(Decreased)
  2018  2017 (Note)
  (Decreased) 
 RMB'000  RMB'000  %  RMB'000  RMB'000  % 
Operating revenue  113,814,236   128,904,873   (11.71)  169,550,624   152,459,444   11.21 
Tax and levies on operations  (1,177,818)  (1,157,760)  1.73   (1,788,998)  (1,376,312)  29.98 
Operating expenses                        
Fuel  (56,617,542)  (59,242,367)  (4.43)  (105,736,173)  (92,737,304)  14.02 
Maintenance  (4,343,349)  (4,556,361)  (4.68)  (4,393,335)  (4,347,723)  1.05 
Depreciation  (14,815,620)  (14,411,632)  2.80   (20,466,423)  (20,180,830)  1.42 
Labor  (8,043,406)  (7,751,551)  3.77 
Service fees on transmission and transformer facilities of HIPDC  (138,038)  (140,771)  (1.94)


7982

 For the Year Ended December 31,     
For the Year Ended
December 31,
    
 2016  2015  
Increased/
(Decreased)
        Increased/ 
 RMB'000  RMB'000  %  2018  2017 (Note)
  (Decreased) 
 RMB'000  RMB'000  % 
Labor
  (11,845,280)  (10,590,084)  11.85 
Service fees on transmission and transformer facilities of HIPDC  (96,721)  (95,894)  0.86 
Purchase of electricity  (3,066,415)  (3,581,517)  (14.38)  (4,678,431)  (3,787,032)  23.54 
Others  (7,234,308)  (8,919,988)  (18.90)  (10,430,998)  (10,160,875)  2.66 
Total operating expenses  (94,258,678)  (98,604,187)  (4.41)  (157,647,361)  (141,899,742)  11.10 
            
Profit from operations  18,377,740   29,142,926   (36.94)  10,114,265   9,183,390   10.14 
Interest income  147,063   160,723   (8.50)  234,604   198,906   17.95 
Financial expenses, net                        
Interest expense  (6,817,526)  (7,945,734)  (14.20)  (10,486,412)  (9,749,004)  7.56 
Exchange (loss)/gain and bank charges , net  (250,076)  (24,336)  927.60 
Exchange (loss) / gain and bank charges , net
  (160,899)  144,359   (211.46)
Total financial expenses, net  (7,067,602)  (7,970,070)  (11.32)  (10,647,311)  (9,604,645)  10.86 
Share of profits less losses of associates and joint ventures  1,298,889   1,525,975   (14.88)  1,823,415   425,215   328.82 
Loss on fair value changes of financial assets / liabilities  (12,986)  (16,742)  (22.43)
Other investment income  1,070,034   115,238   828.54 
Gain on fair value changes of financial assets / liabilities  726,843   856,786   (15.17)
Other investment (loss) / income
  (278,669)  1,742,081   (116.00)
Profit before income tax expense  13,813,138   22,958,050   (39.83)  1,973,147   2,801,733   (29.57)
Income tax expense  (3,465,151)  (5,698,943)  (39.20)  (643,173)  (1,217,526)  (47.17)
Net Profit  10,347,987   17,259,107   (40.04)  1,329,974   1,584,207   (16.05)
Attributable to:                        
-Equity holders of the Company  8,520,427   13,651,933   (37.59)  734,435   1,579,836   (53.51)
-Non-controlling interests  1,827,560   3,607,174   (49.34)  595,539   4,371   13,524.78 
Note: The Company and its subsidiaries have initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b) to Financial Statements.
Total power generated by the Company'sCompany’s domestic operating power plansplants for the year on consolidated basis amounted to 313.690430.457 billion kWh, representing a decreasean increase of 2.13%9.12% year-on-year. The electricity sold amounted to 295.800405.943 billion kWh, representing a decreasean increase of 2.05%9.30% year-on-year.  The decreaseincrease in the Company'sCompany’s power generation for the year was mainly attributable to the following reasons: (i) the installed capacity growth outpacedof the national total electricity consumption was greater than anticipated at the beginning of the year, especially the electricity consumption by the tertiary industry and urban and rural residents maintained at a double-digit growth; (ii) affected by factors such as increased demand and reduced water supply, the Company’s thermal power utilization hours rebounded significantly; and (iii) the new gas turbine, wind-power and photovoltaic units contributed to the growth of the nationwide power consumption while the utilization hours of coal-fired power generation units saw a year-on-year fall; (ii) the growth of the Company's installed capacity was below the regional average; and (iii) the launch of new nuclear power generators in areas, including Liaoning, Guangdong, Fujian and Hainan provinces, had a relatively great impact on the output of the coal-fired power generation units in these regions.generation.
The annual average utilization hours of the Company's domestic power plants reached 3,921 hours. The utilization hours of coal-fired power generating unit was 4,1074,208 hours. In most of the areas where the Company's coal-fired power plants are located, the utilization hours of the Company waswere in a leading position .within those areas.
The power generation of the Company's domestic power plants for the year ended December 31, 20162018 is listed below (in billion kWh):
  Power Generation  Electricity Sold 
Region 2018  Change  2018  Change 
Heilongjiang Province
  13.398   1.72%  12.562   1.97%
Coal-fired
  12.282   0.26%  11.466   0.47%
Wind-power
  1.039   12.74%  1.021   12.50%
PV  0.077   –   0.076   – 
Jilin Province  10.053   16.94%  9.504   17.18%
Coal-fired
  8.743   17.40%  8.243   17.61%
Wind-power
  0.975   13.39%  0.949   13.58%
Hydro-power
  0.076   21.38%  0.074   20.91%
PV
  0.039   231.73%  0.038   231.41%
Biomass power
  0.220   2.40%  0.199   3.23%


Domestic Power Plant Power generation in 2016  Power generation in 2015  Change (%) 
Liaoning Province
         
Dalian  5.656   5.921   (4.47)
Dandong  2.920   3.050   (4.26)
Yingkou  7.872   7.875   (0.04)
Yingkou Co-generation  3.028   3.085   (1.84)
Wafangdian Wind Power  0.098   0.094   4.37 
Suzihe Hydropower  0.034   0.051   (32.36)
Changtu Wind Power  0.199   0.196   1.45 
Dandong Photovoltaic  0.009  －  － 
Yingkou Co-generation Photovoltaic  0.0071  －  － 
Inner Mongolia Autonomous Region
            
Huade Wind Power  0.218   0.193   12.82 
Hebei Province
            
Shang’an  12.931   12.519   3.29 
Kangbao Wind Power  0.116   0.097   19.68 
Kangbao Photovoltaic  0.016  －  － 
Gansu Province
            
Pingliang  8.443   6.020   40.24 
Jiuquan Wind Power  0.410   0.438   (6.32)
Jiuquan II Wind Power  0.443   0.444   (0.24)
Yumen Wind Power  0.169   0.150   12.61 
Yigang Wind Power  0.251   0.001   19,611.99 
Beijing Municpality
            
Beijing Co-generation  3.406   3.924   (13.19)
Beijing Co-generation CCGT  4.136   4.159   (0.54)
Tianjin Municipality
            
Yangliuqing Co-generation  5.280   5.427   (2.71)
Lingang Co-generation CCGT  1.973   1.966   0.35 
Shanxi Province
            
Yushe  2.642   2.750   (3.92)
Zuoquan  5.519   5.625   (1.89)
Dongshan CCGT  2.546   1.139   123.53 
Shandong Province
            
Dezhou  13.749   14.388   (4.44)
Jining  4.733   4.893   (3.27)
Xindian  3.214   3.158   1.77 
Weihai  10.179   10.894   (6.56)
Rizhao Phase II  7.877   7.499   5.04 
8083

  Power Generation  Electricity Sold 
Region 2018  Change  2018  Change 
Liaoning Province  19.548   -0.79%  18.168   -1.23%
Coal-fired  18.984   -1.40%  17.612   -1.87%
Wind-power  0.350   5.02%  0.348   5.07%
Hydro-power  0.059   50.06%  0.058   49.80%
PV  0.155   95.97%  0.151   93.96%
Inner Mongolia  0.243   6.38%  0.240   6.39%
Wind-power  0.243   6.38%  0.240   6.39%
Hebei Province  13.423   0.17%  12.601   0.13%
Coal-fired  13.125   -0.05%  12.315   -0.23%
Wind-power  0.241   5.36%  0.231   13.54%
PV  0.057   43.20%  0.055   46.22%
Gansu Province  11.820   18.97%  11.220   19.19%
Coal-fired
  9.819   17.84%  9.273   17.90%
Wind-power  2.000   24.88%  1.947   25.78%
Ningxia
  0.022   111.02%  0.021   115.47%
PV
  0.022   111.02%  0.021   115.47%
Beijing
  8.521   37.98%  8.086   45.39%
Coal-fired
  1.692   26.36%  1.499   28.90%
Combined Cycle  6.829   41.20%  6.588   49.74%
Tianjin
  7.504   3.18%  7.042
  2.93%
Coal-fired
  5.793   2.39%  5.380
  2.09%
Combined Cycle
  1.708   5.84%  1.659
  5.64%
PV
  0.003   111.87%  0.003
  112.26%
Shanxi Province
  10.916   11.24%  10.196
  11.00%
Coal-fired  8.807   25.19%  8.143
  25.36%
Combined Cycle  2.033   -25.88%  1.977
  -25.89%
PV  0.076   116.85%  0.076
  242.30%
Shandong Province
  97.700   9.20%  91.654
  9.39%
*Coal-fired  96.481   8.59%  90.491
  8.81%
*Wind-power  0.835   89.49%  0.785
  78.58%
PV
  0.384   105.94%  0.378
  104.27%
Henan Province  27.074   21.89%  25.516
  21.93%
Coal-fired
  25.201   21.90%  23.689
  21.83%
Combined Cycle  1.750   22.90%  1.712
  22.86%
Wind-power
  0.098   15.29%  0.090
  17.28%
PV
  0.025   98.97%  0.025
  98.90%
Jiangsu Province
  42.653   -0.21%  40.445
  -0.02%
Coal-fired  34.804   -4.45%  32.762
  -4.75%
Combined Cycle
  6.009   15.59%  5.892
  17.61%
Wind-power
  1.747   62.49%  1.701
  69.37%
PV
  0.093   110.43%  0.090
  107.50%

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

8184

  Power Generation  Electricity Sold 
Region 2018  Change  2018  Change 
Shanghai
  18.180   -1.64%  17.185
  -1.74%
Coal-fired
  16.325   -3.60%  15.373
  -3.78%
Combined Cycle  1.855   19.69%  1.813
  19.78%
Chongqing  9.951   16.32%  9.224
  16.31%
Coal-fired
  8.558   15.84%  7.873
  16.01%
Combined Cycle
  1.360   15.79%  1.327
  16.01%
Wind-power  0.032   –   0.024   – 
Zhejiang Province
  27.090   -1.81%  26.002
  -1.83%
Coal-fired
  26.356   -2.71%  25.281
  -2.76%
Combined Cycle  0.674   50.05%  0.660
  50.73%
PV
  0.062   24.66%  0.061
  23.79%
Hubei Province
  17.519   18.89%  16.386   18.46%
Coal-fired 
  16.736   18.31%  15.674   18.61%
Wind-power  0.458   75.31%  0.396   38.24%
Hydro-power  0.303   -9.85%  0.294   -9.53%
PV
  0.022   271.80%  0.022   269.60%
Hunan Province
  11.410   22.58%  10.696   22.81%
Coal-fired
  10.509   23.98%  9.808   24.33%
Wind-power
  0.545   2.54%  0.539   2.52%
Hydro-power
  0.325   13.95%  0.319   14.04%
PV
  0.032   98.30%  0.031   93.50%
Jiangxi Province
  21.106   6.59%  20.188   6.73%
Coal-fired  20.720   6.10%  19.812   6.12%
Wind-power  0.385   41.32%  0.376   53.35%
Anhui Province  6.151   3.59%  5.873   3.45%
Coal-fired  5.776   1.09%  5.506   0.94%
Wind-power  0.298   136.37%  0.290   133.56%
Hydro-power  0.077   -22.01%  0.077   -22.07%
Fujian Province  12.495   20.37%  11.800   20.52%
Coal-fired  12.482   20.34%  11.787   20.44%
PV  0.012   69.23%  0.012   199.78%
Guangdong Province  25.648   19.58%  24.539   19.76%
Coal-fired
  25.626   19.61%  24.517   19.78%
PV
  0.022   -1.37%  0.022   -1.33%
Guangxi Province
  0.339   1052.18%  0.325   – 
Combined Cycle  0.339   1052.18%  0.325   – 
Yunnan Province  4.450   20.66%  4.146   22.00%
Coal-fired  3.885   18.80%  3.596   19.99%
Wind-power  0.565   35.17%  0.549   36.94%
Guizhou Province  0.197   240.83%  0.194   260.17%
Wind-power  0.197   240.83%  0.194   260.17%

Domestic Power Plant Power generation in 2016  Power generation in 2015  Change (%) 
Hubei Province
         
Enshi Maweigou Hydropower  0.178   0.063   182.12 
Jingmen Thermal Power  2.335   1.930   20.99 
Yingcheng Thermal Power  1.418   1.062   33.50 
Wuhan Power Plant  9.850   10.027   (1.77)
Dalongtan Hydropower  0.116   0.086   35.18 
Jieshan Wind Power  0.188   0.054   248.65 
Jiangxi Province
            
Jinggangshan  8.095   8.993   (9.98)
Jianggongling Wind Power  0.107   0.090   19.14 
Ruijin Power  3.060   3.289   (6.95)
Anyuan Power  6.179   3.015   104.93 
Anhui Province
            
Chaohu Power Plant  5.617   5.847   (3.94)
Hualiangting Hydropower  0.140   0.129   8.66 
Huaining Wind Power
  0.089   －   － 
Fujian Province
            
Fuzhou  7.677   10.892   (29.52)
Guangdong Province
            
Shantou  4.476   4.550   (1.62)
Haimen  5.326   7.631   (30.20)
Haimen Power  7.643   8.770   (12.86)
Shantou Photovoltaic  0.007  －  － 
Yunnan Province
            
Diandong Energy  3.317   3.994   (16.96)
Yuwang Energy  0.268   1.585   (83.12)
Fuyuan Wind Power  0.299   0.147   103.21 
Guizhou Province
            
Panxian Wind Power  0.045   0.0003   16515.56 
Hainan Province
            
Haikou Power Plant  4.842   7.047   (31.30)
Dongfang Power Plant  6.687   9.081   (26.37)
Nanshan Power Plant  0.127   0.248   (48.64)
Gezhen Hydropower  0.164   0.093   75.99 
Wenchang Wind Power  0.101   0.099   1.93 
Dongfang Photovoltaic  0.008  －  － 
Total  3,136.90   320.529   (2.13)

85

  Power Generation  Electricity Sold 
Region 2018  Change  2018  Change 
Hainan Province  13.044   11.99%  12.129   12.21%
Coal-fired  12.635   11.54%  11.725   11.72%
Combined Cycle  0.024   21.22%  0.023   21.34%
Wind-power  0.097   -16.50%  0.095   -16.47%
Hydro-power  0.228   48.80%  0.226   49.20%
PV
  0.060   97.20%  0.059   97.67%
Total
  430.457   9.12%  405.943   9.30%
Note: The statistics marked * comprise newly acquired power plants of the Company that were included in the consolidated financial statements in early August 2018. The comparison figures thereof are solely for reference purposes.
For the year ended December 31, 2016,2018, the accumulated power generation of Tuas Power Ltd., the Company'sCompany’s wholly owned subsidiary in Singapore, accounted for a market share of 21.5%21.1% in Singapore, representing a decrease of 0.2%0.8% compared to the same period last year of 21.7%21.9%.
In respect of the tariff, the Company's average tariff of domestic power plants for the year ended December 31, 20152018 was RMB396.60RMB418.48 per MWh, downup by RMB46.66RMB4.47 per MWh from the year ended December 31, 2015.2017. SinoSing Power's average tariff for 20162018 was RMB514.00RMB648.74 per MWh, representing a decreasean increase of 17.88%19.22% from the same period last year.
In respect of fuel costs, the effective cost controls of the Company contributed to reducedthere was a huge increase in fuel costs of the Company.costs. Compared with 2015,2017, the Company's fuel cost per unit of power sold of domestic power plant decreasedincreased by 1.76%4.85% to RMB170.62RMB236.89 per MWh.
Combining the forgoingforegoing factors, for the year ended December 31, 2016,2018, the Company recorded an operating revenue of RMB113.814RMB169.551 billion, representing a decreasean increase of 11.71%11.21% from RMB128.905RMB152.459 billion of last year, and the net profit attributable to equity holders of the Company of RMB8.520RMB0.734 billion, representing a decrease of 37.59%53.51% from RMB13.652RMB1.580 billion of last year.
For the year ended December 31, 2016,2018, the net profit attributable to equity holders of the Company from domestic operations was RMB8.760RMB1.429 billion, representing a decrease of RMB4.951RMB0.628 billion from RMB13.711RMB2.057 billion for the same period last year. The decrease was primarily attributable to the decreases of on-grid tariff for coal-fired power generator administered by the NDRC, the decreases of domestic power generation of the Companyincrease in fuel costs and the increase of volume of market power transactions.financial expenses, and decrease in investment gains. The net loss attributable to equity holders of the Company from its operations in Singapore was RMB240RMB695 million, representing ana loss increase of RMB181RMB218 million compared to the same period last year.year, which is principally attributable to Tuas Power's decreased profit by RMB320 million (about S$65 million) from the disposal of fuel oil and impairment provision for fuuel oil.
Operating revenue and tax and levies on operations
Operating revenue mainly consists of revenue from electricity sold. For the year ended December 31, 2016,2018, the consolidated operating revenue of the Company and its subsidiaries amounted to RMB113.814RMB169.551 billion, representing a decreasean increase of 11.71%11.21% from RMB128.905RMB152.459 billion for the year ended December 31, 2015.2017. The operating revenue from domestic operations of the Company decreasedincrease by RMB13.706RMB15.166 billion over the same period of last year, while the operating revenue generated from newly acquired entities and newly operated generating units was RMB3.525RMB5.592 billion.
In 2016,2018, the operating revenue from the operations of the Company in Singapore decreasedincreased by RMB1.385RMB1.925 billion over the same period of last year, which was mainly attributed to the continued oversupplyaggressive competitive strategy adopted by the Company in Singapore and the Singapore power and natural gas market, causing continued declineincreased on-grid tariff compared to the same period of electricity tariff and a drop of the operating revenue.
82
last year.
The following table sets forth the average tariff rate of the Company's power plants,Company, as well as percentage changes from 20152017 to 2016.2018.

  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2016  2015  Change (%) 
Liaoning Province
         
Dalian  346.76   375.55   (7.67)
Dandong  352.52   371.45   (5.10)
Yingkou  344.71   378.32   (8.88)
Yingkou Co-generation  331.39   365.04   (9.22)
Wafangdian Wind Power  603.72   598.12   0.94 
Suzihe Hydropower  332.67   329.96   0.82 
Changtu Wind Power  626.09   590.93   5.95 
Dandong Photovoltaic   950.00   —   — 
Yingkon Co-generation Photovoltaic    950.00    —   — 
Inner Mongolia Autonomous Region
            
Huade Wind Power  471.22   520.00   (9.38)
Hebei Province
            
Shang’an  358.48   401.79   (10.78)
Kangbao Wind Power  554.60   538.14   3.06 
Kangbao Photovoltaic  784.95   —   — 
Gansu Province
            
Pingliang  207.63   259.51   (19.99)
Jiuquan Wind Power  367.54   473.12   (22.32)
Jiuquan II Wind Power  402.36   497.75   (19.16)
Yumen Wind Power  390.06   472.01   (17.36)
Yigang Wind Power  447.65   —   — 
Beijing Municipality
            
Beijing Co-generation (Coal-fired)  454.99   480.70   (5.35)
Beijing Co-generation (Combined Cycle)  687.33   959.91   (28.40)
Tianjin Municipality
            
Yangliuqing Co-generation  370.82   416.54   (10.980 
Lingang Co-generation CCGT  726.44   817.57   (11.15)
Shanxi Province
            
Yushe  253.01   334.87   (24.45)
Zuoquan  252.96   333.25   (24.09)
Dongshan CCGT  682.40   703.80   (3.04)
Shandong Province
            
Dezhou  389.78   445.44   (12.50)
Jining  372.57   429.20   (13.19)
Xindian  381.58   432.30   (11.73)
Weihai  382.53   440.45   (13.15)
Rizhao Phase II  372.08   422.33   (11.90)
Zhanhua Co-generation  389.33   424.66   (8.32)
Henan Province
     ��      
Qinbei  354.30   401.65   (11.79)
Luoyang Co-generation  365.91   384.33   (4.79)
8386

 Average tariff rate (VAT inclusive) (RMB/MWh)
Region/type of power generation   
 20182017Change
Heilongjiang Province   
Coal-fired393.28376.884.35%
Wind-power516.82595.75-13.25%
PV750.90–N/A
Jilin Province   
Coal-fired385.18383.750.37%
Wind-power518.74551.80-5.99%
Hydro-power426.74426.630.03%
PV834.14879.95-5.21%
Biomass power754.58750.020.61%
Liaoning Province   
Coal-fired398.85370.257.73%
Wind-power572.25583.79-1.98%
Hydro-power330.00330.000.00%
PV898.76907.54-0.97%
Inner Mongolia   
Wind-power461.87452.911.98%
Hebei Province   
Coal-fired378.05366.233.23%
Wind-power522.09541.30-3.55%
PV801.90978.48-18.05%
Gansu Province   
Coal-fired289.85246.8917.40%
Wind-power403.12459.23-12.22%
Ningxia   
PV805.11800.000.64%
Beijing   
Coal-fired463.40749.82-38.20%
Combined Cycle667.36674.07-1.00%
Tianjin   
Coal-fired397.46393.820.92%
Combined Cycle708.05699.141.27%
PV881.64879.990.19%
Shanxi Province   
Coal-fired326.40317.522.80%
Combined Cycle684.65678.320.93%
PV908.911,370.19-33.67%
Shandong Province   
*Coal-fired404.01397.131.73%
*Wind-power564.46625.68-9.78%
PV862.56881.74-2.18%
Henan Province   
Coal-fired349.86370.27-5.51%
Combined Cycle640.53600.006.76%
Wind-power551.34610.00-9.62%
PV380.00375.341.24%
Jiangsu Province   
Coal-fired438.53401.579.21%
Combined Cycle590.83599.85-1.50%
Wind-power724.53679.606.61%
PV929.01957.89-3.02%

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

8487

 Average tariff rate (VAT inclusive) (RMB/MWh)
Region/type of power generation   
 20182017Change
Shanghai   
Coal-fired411.76398.003.46%
Combined Cycle848.25911.36-6.93%
Chongqing   
Coal-fired412.66392.745.07%
Combined Cycle746.10811.53-8.06%
Wind-power615.26–N/A
Zhejiang Province   
Coal-fired418.61421.15-0.60%
Combined Cycle867.83912.07-4.85%
PV1,054.581,128.38-6.54%
Hubei Province   
Coal-fired422.40402.464.96%
Wind-power630.28676.00-6.76%
Hydro-power381.98378.041.04%
PV887.76880.000.88%
Hunan Province   
Coal-fired463.72455.941.71%
Wind-power610.84606.720.68%
Hydro-power376.07376.17-0.03%
PV907.78879.573.21%
Jiangxi Province   
Coal-fired420.96411.822.22%
Wind-power612.62610.000.43%
Anhui Province   
Coal-fired380.70371.862.38%
Wind-power613.38610.000.55%
Hydro-power384.40376.742.03%
Fujian Province   
Coal-fired400.15375.596.54%
PV985.72980.000.58%
Guangdong Province   
Coal-fired415.14431.23-3.73%
PV986.49980.000.66%
Guangxi Province   
Combined Cycle547.20–N/A
Yunnan Province   
Coal-fired514.50577.23-10.87%
Wind-power470.14478.37-1.72%
Guizhou Province   
Wind-power608.00599.761.37%
Hainan Province   
Coal-fired441.68431.332.40%
Combined Cycle1,565.261,619.97-3.38%
Wind-power612.15608.990.52%
Hydro-power402.62399.530.77%
PV958.71991.44-3.30%
Domestic total418.48414.011.08%
SinoSing Power648.74544.1519.22%

  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2016  2015  Change (%) 
Jiangxi Province
         
Jinggangshan  399.06   443.73   (10.0)
Jianggongling Wind Power  610.00   610.00   — 
Ruijin Power  399.27   441.24   (9.51)
Anyuan Power  400.98   424.63   (5.57)
Anhui Province
            
Chaohu Power  351.24   409.79   (14.29)
Hualiangting Hydropower  385.60   392.89   (1.86)
Huaining Wind Power  610.00   —   — 
Fujian Province
            
Fuzhou  348.95   392.29   (11.05)
Guangdong Province
            
Shantou Coal-fired  464.69   498.01   (6.69)
Haimen  440.21   483.38   (8.93)
Haimen Power  444.53   485.46   (8.43)
Shantou Photovoltaic  980.00   —   — 
Yunnan Province
            
Diandong Energy  513.58   435.58   17.91 
Yuwang Energy  1,394.49   545.42   155.67 
Fuyuan Wind Power  494.71   600.61   (17.63)
Guizhou Province
            
Panxian Wind Power  610.00   —   — 
Hainan Province
            
Haikou  420.45   457.71   (8.14)
Dongfang  420.90   460.53   (8.61)
Nanshan Combined Cycle  672.26   629.32   6.82 
Gezhen Hydropower  400.07   399.78   0.07 
Wenchang Wind Power  609.78   571.95   6.61 
Dongfang Photovoltaic  1,010.00   —   — 
Domestic total  396.60   443.26   (10.53)
Singapore
            
SinoSing Power  514.00   625.88   (17.88)
Note: The tariff of combined-cycle power plants in Shanghai and Tongxiang

Note 1:The tariff of combined-cycle power plants in Shanghai, Zhejiang, Jiangsu and Chongqing consists of on-grid settlement price and capacity subsidy income.

88

Note 2:The statistics marked * comprise newly acquired power plants of the Company that were included in the consolidated financial statements in early August 2018. The comparison figures thereof are solely for reference purposes.
Tax and levies on operations mainly consist of surcharges of value added tax. According to relevant administrative regulations, these surcharges include City Construction Tax and Education Surcharges calculated at prescribed percentages on the amounts of the value-added tax paid. For the year ended December 31, 2016,2018, the tax and levislevies on operations of the Company and its subsidiaries were RMB1.178RMB1.789 billion, representing an increase of RMB20RMB413 million from RMB1.158RMB1.376 billion for the same period of last year, of which the tax and levies on operations attributable to newly acquired entities and new generating units accounted for RMB14RMB18 million.
Operating expenses
For the year ended December 31, 2016,2018, the total operating expenses of the Company and its subsidiaries was RMB94.259RMB157.647 billion, representing a decreasean increase of 4.41%11.10% from the same period last year. The operating expenses in domestic operations of the Company decreasedincreased by RMB2.823RMB13.638 billion, or 3.19%10.36%, from the same period last year, of which the newly acquired entities and the new generating units accounted for RMB2.945RMB1.530 billion; the costs attributable to the existing entities decreasedincreased by RMB5.768RMB12.108 billion, which was primarily attributable to the decreasedincreased fuel costscost for domestic operations in China.
85
The operating expenses from operations in Singapore operations decreasedincreased by RMB1.522RMB2.109 billion, or 14.89%20.55%, from the same period last year, which was mainly due to increased gas price attributable to the declinerise of fuel costs resulting from decreased natural gasinternational oil price.
Fuel costs
Fuel costs account for the majority of the operating expenses for the Company and its subsidiaries. For the year ended December 31, 2016,2018, fuel costs of the Company and its subsidiaries decreasedincreased by 4.43%14.02% to RMB56.618RMB105.736 billion from the RMB59.242RMB92.737 billion for the year ended December 31, 2015.2017. The fuel costs from domestic operations of the Company and its subsidiaries decreasedincreased by RMB1.603RMB12.307 billion, which was primarily attributable to the decreased power generation inincrease of the domestic market.fuel price. The fuel costs of the newly acquired entities and new generating units were RMB2.043RMB0.890 billion and the fuel costs of the existing generating units decreasedincreased by RMB3.646RMB11.417 billion from same period last year. Fuel costs in Singapore decreasedincreased by RMB1.022RMB0.692 billion from the same period last year, mainly due to decreasedincreased fuel costs arising from decreasedincreased natural gas prices. For the year ended December 31, 2016,2018, the average price (excluding tax) of natural fuel coal consumed of the Company and its domestic subsidiaries was RMB376.30RMB551.35 per ton, representing a 2.73%0.61% increase from RMB366.30RMB548.02 per ton for the year ended December 31, 2015.2017. The fuel cost per unit of power sold by the Company's domestic power plants decreasedincreased by 1.76%4.85% to RMB170.62/RMB236.89/MWh from RMB173.67/RMB225.92/MWh in 2015.2017.
Maintenance
For the year ended December 31, 2016,2018, the maintenance expenses of the Company and its subsidiaries amounted to RMB4.343RMB4.393 billion, representing a decreasean increase of RMB213RMB45  million from RMB4.556RMB4.348 billion for the year ended December 31, 2015.2017. The maintenance expenses of the Company's domestic operations decreasedincreased by RMB225RMB54 million compared to the same period last year. The maintenance expenses of operations in Singapore increaseddecreased by RMB12RMB9 million compared to the same period last year.
Depreciation
For the year ended December 31, 2016,2018, depreciation expenses of the Company and its subsidiaries increased by 2.80%1.41% to RMB14.816RMB20.466 billion, compared to RMB14.412RMB20.181 billion infor the year ended December 31, 2015;2017; the increase is mainly due to the expansion of the Company's operations.newly acquired entities and new generating units put into operation. The depreciation expenses of domestic operations increased by RMB397RMB0.369 million compared to the same period last year, of which the depreciation costs incurred by the newly acquired entities and new generating units was RMB605RMB0.320 million. The depreciation expenses of the operations in Singapore increased by RMB7RMB84 million compared to the same period last year.

89
Labor
Labor costs consist of salaries to employees and contributions payable for employees' housing funds, medical insurance, pension and unemployment insurance, as well as training costs. For the year ended December 31, 2018, the labor costs of the Company and its subsidiaries amounted to RMB11.845 billion, representing an increase of RMB1.255 million from RMB10.590 billion for the year ended December 31, 2017. This is mainly attributable to good operating results of the Company's domestic plants and the raise of the Company's annuity contribution percentage. Labor costs for Singapore operations increased by RMB17 million compared to the same period last year.
Other operating expenses (including electricity power purchase costs and service fees paid to HIPDC)
Other operating expenses include environmental protection expenses, land fee, insurance premiums, office expenses, amortization, Tuas Power's electricity power purchase costs, impairment losses, government subsidies and net gains or losses on disposal of non-current assets. For the year ended December 31, 2018, other operating expenses (including electricity power purchase costs and service fees paid to HIPDC) of the Company and its subsidiaries was RMB15.206 billion, representing an increase of RMB1.162 billion from RMB14.044 billion for the year ended December 31, 2017. The other operating expenses from the Company's domestic operations decreased by RMB0.365 billion, mainly due to decreased exchange of tariff quota and change of environmental protection fee into the tax and levies on operations.
Other operating expenses of the operations in Singapore increased by RMB1.527 million compared to the same period last year.
Financial expenses, net
Net financial expenses consist of interest expense, bank charges and net exchange differences.
Interest expenses
For the year ended December 31, 2018, the interest expenses of the Company and its subsidiaries were RMB10.486 billion, representing an increase of 7.56% from RMB9.749 billion for the year ended December 31, 2017. The interest expenses from the Company's domestic operations increased by RMB0.723 billion. The interest expenses from the newly acquired entities and new generating units were RMB0.210 million and those incurred by the existing entities in China increased by RMB0.513 billion, which is largely attributable to increased debts scale The interest expenses of Singapore operations decreased by RMB14 million compared to the same period last year.
Net exchange differences and bank charges
For the year ended December 31, 2018, the Company and its subsidiaries recorded a net loss of RMB161 million in net exchange difference and bank charges, while a net gain of RMB144 million was recorded for the year ended December 31, 2017, mainly due to the weakened exchange rate of RMB against U.S. dollar.
The operations in Singapore recorded net loss of RMB25 million from net exchange difference and bank charges, representing an increase of RMB8 million from the net loss of RMB17 million for the year ended December 31, 2017, mainly due tothe strengthened exchange rate of U.S. dollar against Singapore dollar.
Share of profits less losses of associates and joint ventures
For the year ended December 31, 2018, the share of profits less losses of associates and joint ventures was RMB1.823 billion, representing an increase of RMB1.398 million from RMB0.425 billion from last year, mainly due to ncreased profit of associates and joint ventures.
Income tax expenses
For the year ended December 31, 2018, the Company and its subsidiaries recognized income tax expense of RMB0.643 billion, representing a decrease of RMB0.575 billion from RMB1.218 billion for the year ended December 31, 2017. The income tax expenses for the domestic operations decreased by RMB0.540 billion primarily attributable to increase in coal price from same period last year, which reduced the profitability of the Company’s coal-fired power plants.

90
The income tax expenses of the operations in Singapore decrease by RMB35 million.
Net profit, net profit attributable to the equity holders of the Company and non-controlling interests
For the year ended December 31, 2018, the Company and its subsidiaries achieved a net profit of RMB1.330 billion, representing a decrease of RMB0.254 billion, or 16.04% from RMB1.584 billion for the year ended December 31, 2017; the net profit attributable to equity holders of the Company was RMB0.734 billion, representing a decrease of RMB0.846  billion from RMB1.580 billion for the year ended December 31, 2017.
The net profit attributable to equity holders of the Company from its domestic operations decreased by RMB0.628 billion, mainly attributable to rising fuel prices, increased financial costs and reduced investment income. The net loss attributable to equity holders of the Company from its operations in Singapore was RMB695 million, representing an increase of RMB218 million from the same period last year. This was mainly due to Tuas Power’s loss on disposal of fuel oil of about RMB59million (S$12 million) and impairment provision of fuel oil of about RMB255 million (S$52 million).
The Company’s recorded net profit attributable to non-controlling interests increased to RMB596 million for the year ended December 31, 2018 from RMB4 million for the year ended December 31, 2017, mainly attributable to the increases of the profit of non-wholly owned subsidiaries.
Year ended December 31, 2017 compared with year ended December 31, 2016

  
For the Year Ended
December 31,
    
        Increased/ 
  2017  2016  (Decreased) 
  RMB'000  RMB'000  % 
Operating revenue
  152,459,444   113,814,236   33.95 
Tax and levies on operations  (1,376,312)  (1,177,818)  16.85 
Operating expenses            
Fuel  (92,737,304)  (56,617,542)  63.80 
Maintenance  (4,347,723)  (4,343,349)  0.10 
Depreciation  (20,180,830)  (14,815,620)  36.21 
Labor  (10,590,084)  (8,043,406)  31.66 
Service fees on transmission and transformer facilities of HIPDC  (95,894)  (138,038)  -30.53 
Purchase of electricity  (3,787,032)  (3,066,415)  23.50 
Others  (10,160,875)  (7,234,308)  40.45 
Total operating expenses  (141,899,742)  (94,258,678)  50.54 
Profit from operations
  9,183,390   18,377,740   -50.03 
Interest income  198,906   147,063   35.25 
Financial expenses, net            
Interest expense  (9,749,004)  (6,817,526)  43.00 
Exchange gain / (loss) and bank charges , net
  144,359   (250,076)  -157.73 
Total financial expenses, net
  (9,604,645)  (7,067,602)  35.90 
Share of profits less losses of associates and joint ventures  425,215   1,298,889   -67.26 
Gain / (loss) on fair value changes of financial assets / liabilities  856,786   (12,986)  -66.98
 
Other investment income
  1,742,081   1,070,034   62.81 
Profit before income tax expense  2,801,733   13,813,138   -79.72 
Income tax expense  (1,217,526)  (3,465,151)  -64.86 
Net Profit  1,584,207   10,347,987   -84.69 
Attributable to:            
-Equity holders of the Company  1,579,836   8,520,427   -81.46 
-Non-controlling interests
  4,371   1,827,560   -99.76 


91
Total power generated by the Company's domestic operating power plants for the year on consolidated basis amounted to 394.481 billion kWh, representing an increase of 25.8% year-on-year. The electricity sold amounted to 371.399 billion kWh, representing an increase of 25.6% year-on-year. Newly acquired entities and newly operated generating units mainly contributed to the power generation growth of the Company, meanwhile the power generation by power plants in the regions of central China, east China and Guangdong provinces increased.
The annual average utilization hours of the Company's domestic power plants reached 3,951 hours. In most of the areas where the Company's coal-fired power plants are located, the utilization hours of the Company was in a leading position within those areas.
The power generation of the Company's domestic power plants for the year ended December 31, 2017 is listed below (in billion kWh):
  Power Generation  Electricity Sold 
Region 2017  Change  2017  Change 
*Heilongjiang Province
  13.172   3.53%  12.320   3.52%
*Coal-fired
  12.250   1.58%  11.412   1.43%
*Wind-power
  0.922   38.89%  0.907   39.75%
Jilin Province
  8.596   13.44%  8.111   13.81%
*Coal-fired  7.448   10.69%  7.009   10.76%
*Wind-power  0.860   48.17%  0.836   51.24%
*Hydro-power  0.062   0.75%  0.061   0.79%
*PV  0.0116   -   0.0115   - 
*Biomass power
  0.215   3.62%  0.193   4.35%
Liaoning Province  19.704   -0.60%  18.395   -1.25%
*Coal-fired  19.253   -1.15%  17.947   -1.84%
*Wind-power  0.333   12.13%  0.331   12.19%
*Hydro-power  0.039   14.43%  0.039   14.00%
*PV  0.0790   392.78%  0.0778   396.67%
Inner Mongolia
  0.228   4.84%  0.226   4.50%
Wind-power  0.228   4.84%  0.226   4.50%
Hebei Province  13.400   2.58%  12.585   2.40%
Coal-fired  13.132   1.55%  12.343   1.43%
Wind-power
  0.228   96.82%  0.204   87.01%
PV  0.0399   153.60%  0.0375   208.25%
Gansu Province  9.935   2.25%  9.413   0.08%
Coal-fired  8.333   -1.30%  7.865   -3.91%
Wind-power  1.602   25.80%  1.548   26.78%
Ningxia  0.0103   -   0.0099   - 
PV
  0.0103   -   0.0099   - 
Beijing  6.176   -18.12%  5.562   -20.61%
Coal-fired  1.339   -60.68%  1.163   -60.79%
Combined Cycle  4.836   16.92%  4.399   8.87%
Tianjin  7.273   0.27%  6.843   0.01%
Coal-fired  5.658   7.15%  5.271   7.18%
Combined Cycle
  1.614   -18.22%  1.570   -18.39%
PV  0.0015   -   0.0015   - 
Shanxi Province  9.813   -8.35%  9.185   -8.75%
Coal-fired  7.035   -13.80%  6.495   -14.46%
Combined Cycle  2.743   7.75%  2.668   7.87%
PV  0.0350   -   0.0221   - 
Shandong Province  89.487   116.39%  83.787   115.24%
Coal-fired
  88.848   114.85%  83.162   113.63%
*Wind-power
  0.452   8.82%  0.440   9.13%
*PV  0.1865   266.61%  0.1851   276.54%


92

  Power Generation  Electricity Sold 
Region 2017  Change  2017  Change 
Henan Province  22.210   3.53%  20.927   7.58%
Coal-fired  20.696   -3.44%  19.457   0.02%
*Combined Cycle  1.424   -8.13%  1.393   -8.18%
Wind-power  0.077   309.51%  0.076   513.65%
PV  0.0128   -   0.0126   - 
Jiangsu Province  42.761   -0.61%  40.452   -1.05%
Coal-fired  36.441   -6.38%  34.395   -6.70 
Combined Cycle  5.199   47.79%  5.010   45.02%
Wind-power  1.077   86.12%  1.004   79.52%
PV  0.0442   -   0.0436   - 
Shanghai
  18.484   1.91%  17.490   1.80%
Coal-fired  16.934   2.70%  15.976   2.60%
Combined Cycle  1.550   -5.99%  1.513   -5.94%
Chongqing  8.563   -14.51%  7.930   -14.86%
Coal-fired  7.388   -9.40%  6.787   -9.52%
Combined Cycle  1.175   -36.90%  1.144   -36.94%
Zhejiang Province
  27.589   11.65%  26.487   11.74%
Coal-fired  27.090   12.08%  26.000   12.18%
Combined Cycle  0.449   -13.30%  0.438   -13.46%
PV
  0.0496   130.26%  0.0492   128.47%
Hubei Province  14.781   4.94%  13.833   4.73%
Coal-fired
  14.147   4.00%  13.215   3.64%
Wind-power
  0.292   54.86%  0.287   64.88%
Hydro-power  0.336   14.36%  0.325   14.80%
PV  0.0059   -   0.0059   - 
Hunan Province  9.308   11.94%  8.709   11.28%
Coal-fired
  8.476   13.86%  7.889   13.23%
Wind-power  0.531   -1.11%  0.525   -1.16%
Hydro-power
  0.285   -14.68%  0.280   -14.77%
PV  0.0162   -   0.0159   - 
Jiangxi Province  19.801   13.53%  18.915   13.67%
Coal-fired  19.529   12.66%  18.670   12.88%
Wind-power  0.272   153.43%  0.245   142.93%
Anhui Province  5.940   1.60%  5.677   1.82%
Coal-fired  5.714   1.73%  5.454   1.88%
Wind-power  0.127   42.14%  0.124   52.18%
Hydro-power
  0.099   -29.68%  0.098   -29.81%
Fujian Province
  10.380   35.22%  9.791   35.45%
Coal-fired  10.373   35.12%  9.787   35.39%
PV  0.0073   -   0.0041   - 
Guangdong Province  21.448   22.89%  20.491   22.75%
Coal-fired  21.425   22.81%  20.468   22.66%
PV
  0.0225   217.25%  0.0225   250.68%
Guangxi
  0.029   -   -   - 
Combined Cycle
  0.029   -   -   - 
Yunnan Province
  3.688   -5.01%  3.398   -4.89%
Coal-fired
  3.270   -8.76%  2.997   -9.05%
Wind-power
  0.418   40.04%  0.401   44.53%
Guizhou Province
  0.058   28.88%  0.054   43.36%
Wind-power
  0.058   28.88%  0.054   43.36%
Hainan Province
  11.647   -2.36%  10.809   -2.62%
Coal-fired
  11.327   -1.74%  10.495   -2.02%
Combined Cycle
  0.020   -84.64%  0.019   -84.29%
Wind-power
  0.117   15.47%  0.114   15.39%


93

  Power Generation  Electricity Sold 
Region 2017  Change  2017  Change 
Hydro-power  0.153   -6.37%  0.151   -6.33%
PV
  0.0305   267.36%  0.0301   268.30%
Total  394.481   25.76%  371.399   25.56%
Note: The remark * represented the regional companies or power plants involved in the new acquisition by the Company at the end of 2016. They had been incorporated in the Company's financial statements since 1 January 2017, and the year-on-year data of which is for information only.
For the year ended December 31, 2017, the accumulated power generation of Tuas Power Ltd., the Company's wholly owned subsidiary in Singapore, accounted for a market share of 21.9% in Singapore, representing an increase of 0.4% compared to the same period last year of 21.5%.
In respect of the tariff, the Company's average tariff of domestic power plants for the year ended December 31, 2017 was RMB414.01 per MWh, up by RMB17.41 per MWh from the year ended December 31, 2016. SinoSing Power's average tariff for 2017 was RMB544.15 per MWh, representing an increase of 5.86% from the same period last year.
In respect of fuel costs, there was a huge increase in fuel costs. Compared with 2016, the Company's fuel cost per unit of power sold of domestic power plant increased by 32.41% to RMB225.92 per MWh.
Combining the foregoing factors, for the year ended December 31, 2017, the Company recorded an operating revenue of RMB152.459 billion, representing an increase of 33.95% from RMB113.814 billion of last year, and the net profit attributable to equity holders of the Company of RMB1.580 billion, representing a decrease of 81.46% from RMB8.520 billion of last year.
For the year ended December 31, 2017, the net profit attributable to equity holders of the Company from domestic operations was RMB2.057 billion, representing a decrease of RMB6.703 billion from RMB8.760 billion for the same period last year. The decrease was primarily attributable to the huge increase in the coal price, which severely impacted our profitability. The net loss attributable to equity holders of the Company from its operations in Singapore was RMB477 million, representing an increase of RMB237 million compared to the same period last year.
Operating revenue and tax and levies on operations
Operating revenue mainly consists of revenue from electricity sold. For the year ended December 31, 2017, the consolidated operating revenue of the Company and its subsidiaries amounted to RMB152.459 billion, representing an increase of 33.95% from RMB113.814 billion for the year ended December 31, 2016. The operating revenue from domestic operations of the Company increase by RMB37.326 billion over the same period of last year, while the operating revenue generated from newly acquired entities and newly operated generating units was RMB33.956 billion.
In 2017, the operating revenue from the operations of the Company in Singapore increased by RMB1.319 billion over the same period of last year, which was mainly attributed to the proactive competition strategy we employed in the Singapore market and the increase in the tariff.
The following table sets forth the average tariff rate of the Company's power plants, as well as percentage changes from 2016 to 2017.
  
Average tariff rate (VAT inclusive)
(RMB/MWh)
 
Power Plant       Change 
  2017  2016  (%) 
Heilongjiang Province
         
Xinhua Power Plant  368.12   -   - 
Hegang Power Plant  368.09   -   - 
Daqing Co-generation  403.09   -   - 


94

  
Average tariff rate (VAT inclusive)
(RMB/MWh)
 
Power Plant       Change 
  2017  2016  (%) 
Yichun Co-generation  374.75   -   - 
Sanjiangkou Wind Power  596.28   -   - 
Linjiang Jiangsheng Wind Power  595.34   -   - 
Jilin Province
            
Jiutai Power Plant
  385.03   -   - 
Changchun Co-generation  381.50   -   - 
Nongan Biomass  750.02   -   - 
Linjiang Jubao Hydropower  438.53   -   - 
Zhenlai Wind Power  566.31   -   - 
Siping Wind Power  569.21   -   - 
Tongyu Tuanjie Wind Power  535.27   -   - 
Liaoning Province
            
Dalian  367.97   346.76   6.12 
Dandong
  392.97   352.52   11.47 
Yingkou  365.73   344.71   6.10 
Yingkou Co-generation
  368.11   331.39   11.08 
Wafangdian Wind Power
  586.87   603.72   (2.79)
Suzihe Hydropower
  330.00   332.67   (0.80)
Changtu Wind Power
  582.51   626.09   (6.96)
Dandong Photovoltaic  950.00   950.00   0.00 
Yingkon Co-generation Photovoltaic
  950.00   950.00   0.00 
Yingkou Xianrendao Co-generation Power  880.00   -   - 
Jianchang Bashihan Photovoltaic  880.00   -   - 
Chaoyang Heiniuyingzi Photovoltaic  347.25   -   - 
Inner Mongolia Autonomous Region
            
Huade Wind Power
  452.91   471.22   (3.89)
Hebei Province
            
Shang'an
  366.23   358.48   2.16 
Kangbao Wind Power  660.42   554.60   19.08 
Kangbao Photovoltaic  982.50   784.95   25.17 
Zhuolu Phase I Dabao Wind Power  519.45   -   - 
Gansu Province
            
Pingliang
  246.89   207.63   18.91 
Jiuquan Wind Power
  437.85   367.54   19.13 
Jiuquan II Wind Power
  449.50   402.36   11.72 
Yumen Wind Power  430.53   390.06   10.38 
Yigang Wind Power  554.72   447.65   23.92 
Beijing Municipality
            
Beijing Co-generation (Coal-fired)  689.91   454.99   51.63 
Beijing Co-generation (Combined Cycle)  674.07   687.33   (1.93)
Tianjin Municipality
            
Yangliuqing Co-generation  393.95   370.82   6.24 
Lingang Co-generation CCGT  699.14   726.44   (3.76)
Chenxi Photovoltaic  879.99   -   - 
Shanxi Province
            
Yushe
  323.54   253.01   27.88 
Zuoquan
  314.64   252.96   24.38 
Dongshan CCGT
  678.32   682.40   (0.60)
Yushe Photovoltaic
  1370.19   -   - 
Shandong Province
            
Dezhou
  401.45   389.78   2.99 


95

  
Average tariff rate (VAT inclusive)
(RMB/MWh)
 
Power Plant       Change 
  2017  2016  (%) 
Jining  395.54   372.57   6.17 
Xindian  397.61   381.58   4.20 
Weihai  404.81   382.53   5.82 
Rizhao Phase II  391.43   372.08   5.20 
Zhanhua Co-generation  437.74   389.33   12.43 
Baiyanghe Power Plant  400.42   -   - 
Rizhao Power Plant Phase I
  458.82   -   - 
Jiaxiang Power Plant  388.05   -   - 
Jining Co-generation  395.19   -   - 
QufuCo-generation  390.16   -   - 
Huangtai Power Plant
  390.59   -   - 
Yantai Power Plant
  409.84   -   - 
Linyi Power Plant  402.16   -   - 
Jining Yunhe Power Plant
  403.84   -   - 
Liaocheng Co-generation  390.49   -   - 
Zhongtai Power Plant  371.67   -   - 
Laiwu Power Plant
  384.36   -   - 
Muping Wind Power  627.56   -   - 
Penglai Wind Power  569.97   -   - 
Rushan Wind Power  634.98   -   - 
Changdao Wind Power  635.20   -   - 
Rongcheng Wind Power  622.69   -   - 
Dongying Wind Power  623.54   -   - 
Boshan Photovoltaic  1,000.00   -   - 
Sishui Photovoltaic
  1,109.60   -   - 
Gaozhuang Photovoltaic  592.44   -   - 
Jining Co-generation Photovoltaic  592.44   -   - 
Weihai Haibu Photovoltaic  830.00   -   - 
Zhanhua Qingfenghu Photovoltaic
  1,080.00   -   - 
Henan Province
            
Qinbei
  374.82   354.30   5.79 
Luoyang Co-generation  364.95   365.91   (0.26)
Luoyang Yangguang  376.26   316.83   18.76 
Mianchi Co-generation  349.95   328.10   6.66 
Zhumadian Wind Power  610.00   610.00   0.00 
Zhongyuan CCGT  600.00   -   - 
Jiangsu Province
            
Nantong
  417.42   407.55   2.42 
Nanjing
  428.37   400.81   6.88 
Taicang I
  372.74   349.31   6.71 
Taicang II
  372.74   349.31   6.71 
Huaiyin
  487.47   433.30   12.50 
Jinling Coal-fired  366.53   348.86   5.07 
Jinling Combined-Circle
  593.09   708.41   (16.28)
Jinling Combined-Cycle Cogeneration  604.16   617.12   (2.10)
Suzhou Thermal Power  465.86   453.42   2.74 
Qidong Wind Power  556.03   553.91   0.38 
Rudong Wind Power  609.29   606.24   0.50 
Nanjing Thermal Power  469.99   445.21   5.57 
Tongshan Wind Power
  610.00   610.00   0.00 
Rudong Offshore Wind Power
  850.00   -   - 
Luhe Wind Power
  610.00   -   - 


96

  
Average tariff rate (VAT inclusive)
(RMB/MWh)
 
Power Plant       Change 
  2017  2016  (%) 
Guanyun Power  433.00   -   - 
Suzhou CCGT  612.79   -   - 
Shanghai Municipality
            
Shidongkou I  401.11   395.18   1.50 
Shidongkou II  397.96   380.60   4.56 
Shanghai CCGT  911.36   382.31   138.38 
Shidongkou Power  395.75   899.62   (56.01)
Chongqing Municipality
            
Luohuang  392.74   376.92   4.20 
Liangjiang CCGT  811.53   649.74   24.90 
Zhejiang Province
            
Yuhuan  418.58   403.82   3.66 
Changxing  429.18   420.54   2.05 
Tongxiang Combined-cycle  912.07   887.70   2.75 
Changxing Photovoltaic  1,252.38   1,208.23   3.65 
Hongqiao Photovoltaic  1,119.24   980.00   14.21 
Huzhou Distributed Photovoltaic  1,009.06   -   - 
Hunan Province
            
Yueyang  456.55   449.87   1.48 
Xiangqi Hydropower  376.17   610.00   (38.33)
Subaoding Wind Power  605.55   610.00   (0.73)
Guidong Wind Power  605.55   404.19   49.82 
Hubei Province
            
Enshi Maweigou Hydropower  383.42   380.43   0.79 
Jingmen Thermal Power  403.50   378.97   6.47 
Yingcheng Thermal Power  405.69   392.73   3.30 
Wuhan Power  401.70   376.53   6.68 
Dalongtan Hydropower  370.00   376.38   (1.70)
Jieshan Wind Power  676.00   610.00   10.82 
Suizhou Zengdufuhe Photovoltaic  880.00   -   - 
Jiangxi Province
            
Jinggangshan  409.42   399.06   2.60 
Jianggongling Wind Power  610.00   610.00   0.00 
Ruijin Power  411.81   399.27   3.14 
Anyuan Power  415.17   400.98   3.54 
Anhui Province
            
Chaohu Power  371.86   351.24   5.87 
Hualiangting Hydropower  376.74   385.60   (2.30)
Huaining Wind Power  610.00   610.00   0.00 
Fujian Province
            
Fuzhou  375.59   348.95   7.63 
Changle Photovoltaic  980.00   -   - 
Guangdong Province
            
Shantou Coal-fired  448.26   464.69   (3.54)
Haimen  425.50   440.21   (3.34)
Haimen Power  428.41   444.53   (3.63)
Shantou Photovoltaic  980.00   980.00   0.00 
Yunnan Province
            
Diandong Energy  358.12   513.58   (30.27)
Yuwang Energy  329.35   1,394.49   (76.38)
Fuyuan Wind Power  478.37   494.71   (3.30)

97

  
Average tariff rate (VAT inclusive)
(RMB/MWh)
 
Power Plant       Change 
  2017  2016  (%) 
Guizhou Province
         
Panxian Wind Power  599.76   610.00   (1.68)
Hainan Province
            
Haikou  429.17   420.45   2.07 
Dongfang  432.70   420.90   2.80 
Nanshan Combined Cycle  1,619.97   672.26   140.97 
Gezhen Hydropower  399.53   400.07   (0.13)
Wenchang Wind Power  608.99   609.78   (0.13)
Dongfang Photovoltaic  1,010.00   1,010.00   0.00 
Domestic total  414.01   396.60   4.39 
Singapore
            
SinoSing Power  544.15   514.00   5.87 
Note: The tariff of combined-cycle power plants in Shanghai and Zhejiang consists of on-grid settlement price and capacity subsidy income. Changdao Wind Power has been shut down.
Tax and levies on operations mainly consist of surcharges of value added tax. According to relevant administrative regulations, these surcharges include City Construction Tax and Education Surcharges calculated at prescribed percentages on the amounts of the value-added tax paid. For the year ended December 31, 2017, the tax and levies on operations of the Company and its subsidiaries were RMB1.376 billion, representing an increase of RMB198 million from RMB1.178 billion for the same period of last year, of which the tax and levies on operations attributable to newly acquired entities and new generating units accounted for RMB278 million.
Operating expenses
For the year ended December 31, 2017, the total operating expenses of the Company and its subsidiaries was RMB141.900 billion, representing an increase of 50.54% from the same period last year. The operating expenses in domestic operations of the Company increased by RMB46.074 billion, or 53.85%, from the same period last year, of which the newly acquired entities and the new generating units accounted for RMB32.364 billion; the costs attributable to the existing entities increased by RMB13.710 billion, which was primarily attributable to the increased fuel cost for domestic operations in China.
The operating expenses from operations in Singapore operations increased by RMB1.567 billion, or 18.02%, from the same period last year, which was mainly due to increased gas cost attributed to the rise of international oil price.
Fuel costs
Fuel costs account for the majority of the operating expenses for the Company and its subsidiaries. For the year ended December 31, 2017, fuel costs of the Company and its subsidiaries increased by 63.79% to RMB92.737 billion from the RMB56.618 billion for the year ended December 31, 2016. The fuel costs from domestic operations of the Company and its subsidiaries increased by RMB35.387 billion, which was primarily attributable to the increase of the fuel price. The fuel costs of the newly acquired entities and new generating units were RMB17.402 billion and the fuel costs of the existing generating units increased by RMB17.985 billion from same period last year. Fuel costs in Singapore increased by RMB0.732 billion from the same period last year, mainly due to the increase in the gas price. For the year ended December 31, 2017, the average price (excluding tax) of natural fuel coal consumed of the Company and its domestic subsidiaries was RMB548.02 per ton, representing a 45.63% increase from RMB376.30 per ton for the year ended December 31, 2016. The fuel cost per unit of power sold by the Company's domestic power plants increased by 32.41% to RMB225.92/MWh from RMB170.62/MWh in 2016.

98
Maintenance
For the year ended December 31, 2017, the maintenance expenses of the Company and its subsidiaries amounted to RMB4.348 billion, representing an increase of RMB5 million from RMB4.343 billion for the year ended December 31, 2016. The maintenance expenses of the Company's domestic operations increased by RMB21 million compared to the same period last year. The maintenance expenses of operations in Singapore decreased by RMB16.00 million compared to the same period last year.
Depreciation
For the year ended December 31, 2017, depreciation expenses of the Company and its subsidiaries increased by 36.21% to RMB20.181 billion, compared to RMB14.816 billion for the year ended December 31, 2016; the increase is mainly due to the increase in the power generation by the newly acquired entities and new generating units. The depreciation expenses of domestic operations increased by RMB5,288 million compared to the same period last year, of which the depreciation costs incurred by the newly acquired entities and new generating units was RMB5,509 million. The depreciation expenses of the operations in Singapore increased by RMB77 million compared to the same period last year.
Labor
Labor costs consist of salaries to employees and contributions payable for employees' housing funds, medical insurance, pension and unemployment insurance, as well as training costs. For the year ended December 31, 2016,2017, the labor costs of the Company and its subsidiaries amounted to RMB8.043RMB10.590 billion, representing an increase of RMB291RMB2,547 million from RMB7.752RMB8.043 billion for the year ended December 31, 2015.2016. This is mainly attributable to labor costs ofthe increase in the power generation by the newly acquired entities and new generating units, which were RMB164 million.units. Labor costs for Singapore operations increased by RMB14 million compared to the same period last year.
Other operating expenses (including electricity power purchase costs and service fees paid to HIPDC)
Other operating expenses include environmental protection expenses, land fee, insurance premiums, office expenses, amortization, Tuas Power's electricity power purchase costs, impairment losses, government subsidies and net losses on disposal of properties, plant and equipment. For the year ended December 31, 2016,2017, other operating expenses (including electricity power purchase costs and service fees paid to HIPDC) of the Company and its subsidiaries was RMB10.439RMB14.044 billion, representing a decreasean increase of RMB2.203RMB3.605 billion from RMB12.642RMB10.439 billion for the year ended December 31, 2015.2016. The other operating expenses from the Company's domestic operations decreasedincreased by RMB1.669 billion; other operating expenses of the existing entities decreased by RMB1.650RMB2.845 billion,
86
compared mainly due to the same period last year. The impairment loss experienced a decrease of RMB1.886 billion compared toincrease in the same period last year.power generation by the newly acquired entities and new generating units.
Other operating expenses of the operations in Singapore decreasedincreased by RMB534RMB760 million compared to the same period last year. The electricity power purchase cost decreased by RMB523 million compared to the same period last year, which was largely due to the decreased price of electricity in retail business.
Financial expenses
Financial expenses consist of interest expense, bank charges and net exchange differences.
Interest expenses
For the year ended December 31, 2016,2017, the interest expenses of the Company and its subsidiaries were RMB6.818RMB9.749 billion, representing a decreasean increase of 14.20%42.99% from RMB7.946RMB6.818 billion for the year ended December 31, 2015.2016. The interest expenses from the Company's domestic operations decreasedincreased by RMB1.157RMB2.961 billion. The interest expenses from the newly acquired entities and new generating units were RMB303RMB2,510 million and those incurred by the existing entities in China decreasedincreased by RMB1.460RMB0.451 billion, which is largely attributable to decreased benchmarkincreased interest rate of RMB.and debt scale. The interest expenses of Singapore operations increaseddecreased by RMB29RMB30 million compared to the same period last year.

99
Net exchange differences and bank charges
For the year ended December 31, 2016,2017, the Company and its subsidiaries recorded a net lossgain of RMB250RMB144 million in net exchange losses and bank charges, representing a net lossgain increase of RMB226RMB394 million compared with the net loss of RMB24RMB250 million for the year ended December 31, 2015,2016, mainly due to the weakenedstrengthened exchange rate of RMB against U.S. dollar.
The operations in Singapore recorded net gainsloss of RMB50RMB17 million from net exchange difference and bank charges, representing a decrease of RMB120RMB67 million from the net gains of RMB170RMB50 million for the year ended December 31, 2015,2016, mainly due to the strengthened exchange ratesettlement of U.S. dollar against Singapore dollar.effective hedging instruments for cash flow hedge.
Share of profits less losses of associates and joint ventures
For the year ended December 31, 2016,2017, the share of profits less losses of associates and joint ventures was RMB1.299RMB0.425 billion, representing a decrease of RMB227RMB874 million from RMB1.526RMB1.299 billion from last year, mainly due to a decreased profit of associates and joint ventures.
Income tax expenses
For the year ended December 31, 2016,2017, the Company and its subsidiaries recognisedrecognized income tax expense of RMB3.465RMB1.218 billion, representing a decrease of RMB2.234RMB2.247 billion from RMB5.699RMB3.465 billion for the year ended December 31, 2015.2016. The income tax expenses for the domestic operations decreased by RMB2.445RMB2.192 billion primarily attributable to the decreaseincrease of pre-tax profit.the coal price in 2017 drove down our profitability and decreased our income tax.
The income tax expenses of the operations in Singapore increaseddecrease by RMB211RMB55 million. It is mainly due to RMB204 million of income tax credit granted by Singapore government last year and no such tax credit was granted in the current year.
Net profit, net profit attributable to the equity holders of the Company and non-controlling interests
For the year ended December 31, 2016,2017, the Company and its subsidiaries achieved a net profit of RMB10.348RMB1.584 billion, representing a decrease of RMB6.911RMB8.764 billion, or 40.04%84.69% from RMB17.259RMB10.348 billion for the year ended December 31, 2015;2016; the net profit attributable to equity holders of the Company was RMB8.520RMB1.580 billion, representing a decrease of RMB5.132RMB6.940 billion from RMB13.652RMB8.520 billion for the year ended December 31, 2015.
87
2016.
The net profit attributable to equity holders of the Company from its domestic operations decreased by RMB4.951RMB6.703 billion, mainly contributableattributable to lowered on-grid tariff for coal-fired power generators administered by the NDRC, reduced domestic power generation ofhuge increase in the Company and increased volume of market power transactions.coal price drove down our profitability. The net loss attributable to equity holders of the Company from its operations in Singapore was RMB240RMB477 million, representing an increase of RMB181RMB237 million from the same period last year. This was mainly due to commenced operation of many generators during the recent years, which led to the continued oversupply in the Singapore's power and natural gas market and subsequently continued reductionlower than expected profit margin of power tariff andcontracts, which led to a marked drop in the profitability of the Company's overseas power generation business.
The Company's recorded net profit attributable to non-controlling interests decreased to RMB1.828 billionRMB4 million for the year ended December 31, 2017 from RMB1,828 million for the year ended December 31, 2016, from RMB3.607 billion for the year ended December 31, 2015, mainly attributable to reduced profit of the Company's non-wholly owned subsidiaries.
Year ended December 31, 2015 compared with year ended December 31, 2014
  For the Year Ended December 31,    
  2015  2014  
Increased/
(Decreased)
 
  RMB'000  RMB'000  % 
Operating revenue  128,904,873   125,406,855   2.79 
Tax and levies on operations  (1,157,760)  (932,485)  24.16 
Operating expenses            
Fuel  (59,242,367)  (64,762,908)  (8.52)
Maintenance  (4,556,361)  (3,729,912)  22.16 
Depreciation  (14,411,632)  (11,646,683)  23.74 
Labor  (7,751,551)  (6,259,588)  23.83 
Service fees on transmission and transformer facilities of HIPDC  (140,771)  (140,771)  0.00 
Purchase of electricity  (3,581,517)  (5,055,076)  (29.15)
Others  (8,919,988)  (7,604,790)  17.29 
Total operating expenses  (98,604,187)  (99,199,728)  (0.60)
             
Profit from operations  29,142,926   25,274,642   15.31 
Interest income  160,723   159,550   0.74 
Financial expenses, net            
Interest expense  (7,945,734)  (7,814,114)  1.68 
Exchange gain and bank charges , net  (24,336)  (9,492)  156.38 
Total financial expenses, net  (7,970,070)  (7,823,606)  1.87 
Share of profits less losses of associates and joint ventures  1,525,975   1,315,876   15.97 
(Loss) / gain on fair value changes of financial assets / liabilities  (16,742)  42,538   (139.36)
Other investment income  115,238   80,580   43.01 
Profit before income tax expense  22,958,050   19,049,580   20.52 
Income tax expense  (5,698,943)  (5,487,208)  3.86 
Net Profit  17,259,107   13,562,372   27.26 
Attributable to:            
-Equity holders of the Company  13,651,933   10,757,317   26.91 
-Non-controlling interests  3,607,174   2,805,055   28.60 
Total power generated by the Company's domestic operating power plans for the year on consolidated basis amounted to 320.529 billion kWh, representing an increase of 8.9% year-on-year. The electricity sold amounted to 301.979 billion kWh, representing an increase of 8.8% year-on-year. Newly acquired entities and newly operated generating units mainly contributed to the power generation growth of the Company.
The annual average utilization hours of the Company's domestic power plants reached 4,147 hours. In most of the areas where the Company's coal-fired power plants are located, the utilization hours of the Company was in a leading position within those areas.
In January 2015, the Company completed the acquisition under common control of the subsidiaries of Huaneng Group including Huaneng Hainan Power Inc. ("Hainan Power"), Huaneng Wuhan Power Generation Co., Ltd. ("Wuhan Power"), Huaneng Suzhou Thermal Power Co., Ltd. ("Suzhou Thermal Power"), Enshi Qingjiang Dalongtan Hydropower Development Co., Ltd. ("Dalongtan Hydropower") and Huaneng Hualiangting Hydropower Co., Ltd. ("Hualiangting Hydropower"), and the subsidiaries of HIPDC including Huaneng Chaohu Power
88
Generation Co., Ltd. ("Chaohu Power"), Huaneng Ruijin Power Generation Co., Ltd. ("Ruijin Power"), Huaneng Anyuan Power Generation Co., Ltd. ("Anyuan Power"), Huaneng Jingmen Thermal Power Co., Ltd. ("Jingmen Thermal Power") and Huaneng Yingcheng Thermal Power Co., Ltd. ("Yingcheng Thermal Power") (collectively, the "Newly Acquired Entities"). The aforementioned entities were included in the consolidated financial statements.
The power generation of the Company's domestic power plants for the year ended December 31, 2015 is listed below (in billion kWh):

Domestic Power Plant Power generation in 2015  Power generation in 2014  Change 
Liaoning Province
         
Dalian  5.921   6.423   (7.82)%
Dandong  3.050   3.197   (4.60)%
Yingkou  7.875   7.980   (1.32)%
Yingkou Co-generation  3.085   3.043   1.38%
Wafangdian Wind Power  0.094   0.099   (5.05)%
Suzihe Hydropower  0.051   0.040   27.50%
Changtu Wind Power  0.196   0.127   54.33%
Inner Mongolia Autonomous Region
            
Huade Wind Power  0.193   0.217   (11.06)%
Hebei Province
            
Shang’an  12.519   12.836   (2.47)%
Kangbao Wind Power  0.097   0.085   14.12%
Gansu Province
            
Pingliang  6.020   9.129   (34.06)%
Jiuquan Wind Power  0.438   0.838   (47.73)%
Jiuquan II Wind Power  0.444   0.039   1038.46%
Yumen Wind Power  0.150   -   - 
Yigang Wind Power  0.001   -   - 
Beijing Municpality
            
Beijing Co-generation  3.924   4.456   (11.94)%
Beijing Co-generation CCGT  4.159   4.051   2.67%
Tianjin Municipality
            
Yangliuqing Co-genertion  5.427   6.572   (17.42)%
Lingang CCGT Co-generation  1.966   0.126   1460.32%
Shanxi Province
            
Yushe  2.750   2.608   5.44%
Zuoquan  5.625   5.999   (6.23)%
Dongshan CCGT  1.139   -   - 
Shandong Province
            
Dezhou  14.388   15.348   (6.25)%
Jining  4.893   5.096   (3.98)%
Xindian  3.158   3.303   (4.39)%
Weihai  10.894   11.771   (7.45)%
Rizhao Phase II  7.499   8.236   (8.95)%
Zhanhua Co-generation  1.503   1.674   (10.22)%
Henan Province
            
Qinbei  18.710   20.366   (8.13)%
Luoyang Co-generation  1.485   -   - 
89
Domestic Power Plant Power generation in 2015  Power generation in 2014  Change 
Jiangsu Province
         
Nantong  6.167   6.752   (8.66)%
Nanjing  2.736   3.154   (13.25)%
Taicang  10.081   11.174   (9.78)%
Huaiyin  5.813   6.486   (10.38)%
Jinling CCGT  2.581   1.895   36.20%
Jinling Coal-fired  11.728   11.567   1.39%
Jinling Co-generation  1.711   1.358   25.99%
Rudong Wind Power  0.095   0.113   (15.93)%
Qidong Wind Power  0.340   0.379   (10.29)%
Suzhou Thermal Power  0.789   0.806   (2.1)%
Shanghai Municipality
            
Shidongkou I  5.060   5.665   (10.68)%
Shidongkou II  5.252   5.190   1.19%
Shidongkou Power  6.039   6.018   0.35%
Shanghai CCGT  1.775   2.097   (15.36)%
Chongqing Municipality
            
Luohuang  9.767   10.862   (10.08)%
Liangjiang CCGT  0.938   0.246   281.30%
Zhejiang Province
            
Yuhuan  18.957   21.771   (12.93)%
Changxing  5.438   0.488   1014.34%
Tongxiang CCGT  0.270   0.171   57.89%
Changxing Photovoltaic  0.008   -   - 
Hunan Province
            
Yueyang  7.859   8.553   (8.11)%
Xiangqi Hydropower  0.363   0.310   17.10%
Subaoding Wind Power  0.318   0.020   1490.00%
Guidong Wind Power  0.069   -   - 
Hubei Province
            
Enshi Maweigou Hydropower  0.063   0.042   50.00%
Jingmen Thermal Power  1.930   0.530   264.1%
Yingcheng Thermal Power  1.062   -   - 
Wuhan Power Plant  10.027   9.760   2.7%
Dalongtan Hydropower  0.086   0.102   (15.8)%
Jieshan Wind Power  0.054   -   - 
Jiangxi Province
            
Jinggangshan  8.993   9.244   (2.72)%
Jianggongling Wind Power  0.090   0.001   8900.00%
Ruijin Power  3.289   3.329   (1.2)%
90
Domestic Power Plant Power generation in 2015  Power generation in 2014  Change 
Anyuan Power  3.015   -   - 
Anhui Province
            
Chaohu Power Plant  5.847   6.807   (14.1)%
Hualiangting Hydropower  0.129   0.097   32.9%
Fujian Province
            
Fuzhou  10.892   13.925   (21.78)%
Guangdong Province
            
Shantou  4.550   5.200   (12.50)%
Haimen  7.631   12.270   (37.81)%
Haimen Power  8.770   6.152   42.56%
Yunnan Province
            
Diandong Energy  3.994   5.953   (32.91)%
Yuwang Energy  1.585   3.651   (56.59)%
Fuyuan Wind Power  0.147   0.022   568.18%
Guizhou Province
            
Panxian Wind Power  0.0003   -   - 
Hainan Province
            
Haikou Power Plant  7.047   6.424   9.7%
Dongfang Power Plant  9.081   10.079   (9.9)%
Nanshan Power Plant  0.248   0.273   (9.0)%
Gezhen Hydropower  0.093   0.202   (53.9)%
Wenchang Wind Power  0.099   0.083   19.4%
Total  320.529   294.388   8.9%
                The Company's growth of power generation within China mainly originated from the capacity contribution from the Newly Acquired Entities and power plants newly put into production. The main reasons for the decrease in some of the Company's power plants are as follows: firstly, as a result of the slowdown of the economy and the deepening of China's economic restructuring, nation-wide electricity consumption in China declined, which led to the decrease of utilization hours. Secondly, the commencement of operations of multiple West-to-East UHV transmission lines has squeezed the generation potential of thermal power generators in the coastal regions in southeastern China. Thirdly, the lower temperature in summer 2015 resulted in lower electricity demand for cooling, while the heating demand in winter also failed to increase significantly. Fourthly, the commencement of operation of many nuclear power units in Liaoning, Zhejiang, Fujian and other provinces reduced the power output of the thermal power generating units in such regions. For the year ended December 31, 2015, the accumulated power generation of Tuas Power Ltd., the Company's wholly owned subsidiary in Singapore, accounted for a market share of 21.7% in Singapore, representing a decrease of 0.1% compared to the same period last year of 21.8%.
In respect of the tariff, the Company's average tariff of domestic power plants for the year ended December 31, 2015 was RMB443.26 per MWh, down by RMB11.69 per MWh from the year ended December 31, 2014.
91
SinoSing Power's average tariff for 2015 was RMB625.88 per MWh, representing a decrease of 32.02% from the same period last year.
In respect of fuel costs, the decrease of coal market price and effective cost control of the Company contributed to reduced fuel costs of the Company. Compared with 2014, the Company's domestic fuel cost per unit of power sold decreased by 13.68% to RMB173.67 per MWh.
Combining the foregoing factors, for the year ended December 31, 2015, the Company registered operating revenue of RMB128.905 billion, representing an increase of 2.79% from RMB125.407 billion of last year, and net profit attributable to equity holders of RMB13.652 billion, representing an increase of 26.91% from RMB10.757 billion of last year.
For the year ended December 31, 2015, the profit attributable to equity holders of the Company from domestic operations was RMB13.711 billion, representing an increase of RMB3.082 billion from RMB10.629 billion for the same period last year. The increase was primarily attributable to the decrease of domestic fuel costs and the profits contributed by the Newly Acquired Entities and the operation of new generating units. The loss attributable to equity holders of the Company from its operations in Singapore was RMB59 million. This is because of the continued oversupply in Singapore's power market as result of commenced operations of many generators during the recent years, which led to a continued reduction of local power tariff and significantly decreased the profit margin per unit of power sold.
Operating revenue and tax and levies on operations
Operating revenue mainly consists of revenue from electricity sold. For the year ended December 31, 2015, the consolidated operating revenue of the Company and its subsidiaries amounted to RMB128.905 billion, representing an increase of 2.79% from RMB125.407 billion for the year ended December 31, 2014.  The operating revenue from domestic operations of the Company increased by RMB7.725 billion over the same period of last year, while the operating revenue from the Newly Acquired Entities and the operation of new generating units was RMB21.228 billion.
The operating revenue from operations of the Company in Singapore decreased by RMB4.227 billion over the same period of last year, which was mainly attributable to the continued oversupply in Singpore's power market, which has led to continued declinehuge increase of the profit margin per unit of power sold.
The following table sets forth the average tariff rate of the Company's power plants, as well as percentage changescoal price from 2014 to 2015.
  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2015  2014  Change 
Liaoning Province
         
Dalian  375.55   394.50   (4.80)%
Dandong  371.45   393.06   (5.50)%
Yingkou  378.32   399.33   (5.26)%
Yingkou Co-generation  365.04   399.21   (8.56)%
Wafangdian Wind Power  598.12   609.68   (1.90)%
Suzihe Hydropower  329.96   330.00   (0.01)%
Changtu Wind Power  590.93   602.82   (1.97)%
Inner Mongolia Autonomous Region
            
Huade Wind Power  520.00   520.00   — 
Hebei Province
            
Shang'an  401.79   429.39   (6.43)%
Kangbao Wind Power  538.14   538.84   (0.13)%
Gansu Province
            
Pingliang  259.51   322.72   (19.59)%
Jiuquan Wind Power  473.12   520.60   (9.12)%
Jiuquan II Wind Power  497.75   540.00   (7.82)%
Yumen Wind Power  472.01   520.60   (9.33)%
Beijing Municipality
            
Beijing Co-generation (Coal-fired)  480.70   514.71   (6.61)%
Beijing Co-generation (Combined Cycle)  959.91   882.33   8.79%

92

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

93

  Average tariff rate (VAT inclusive) (RMB/MWh) 
Power Plant 2015  2014  Change 
Guizhou Province
         
Panxian Wind Power  —   —   — 
Yunnan Province
            
Diandong Energy  435.58   401.59   8.46%
Yuwang Energy  545.42   395.96   37.75%
Fuyuan Wind Power  600.61   610.00   (1.54)%
Hainan Province
            
Haikou  457.71   474.14   (3.47)%
Dongfang  460.53   482.69   (4.59)%
Nanshan Combined Cycle  629.32   439.84   (43.08)%
Gezhen Hydropower  399.78   392.63   1.82%
Wenchang Wind Power  571.95   619.72   (7.71)%
Domestic total  443.26   454.95   (2.57)%
Singapore
            
SinoSing Power  625.88   920.74   (32.02)%
Note 1:  The tariff of Shanghai Combined Cycle and Tongxiang Combined Cycle consists of on-grid settlement price and capacity subsidy income.
Tax and levies on operations mainly consist of surcharges of value-added tax. According to relevant administrative regulations, these surcharges include City Construction Tax and Education Surcharges calculated at prescribed percentages on the amounts of the value-added tax paid. For the year ended December 31, 2015, the tax and levies on operations of the Company and its subsidiaries were RMB1.158 billion, representing an increase of RMB226 million from RMB932 million for the same period of last year, of which the tax and levies on operations attributable to the Newly Acquired Entities and new generating units accounted for RMB136 million.
Operating expenses
For the year ended December 31, 2015, the total operating expenses of the Company and its subsidiaries was RMB98.604 billion, representing a decrease of 0.60% from the same period last year. The operating expenses in domestic operations of the Company increased by RMB3.08 billion, or 3.61%, from the same period last year, of which the Newly Acquired Entities and the new generating units accounted for RMB15.349 billion; the costs attributable to the existing entities decreased by RMB12.269 billion, which was primarily attributable to the decreased fuel costs for domestic operations in China.
The operating expenses from operations in Singapore operations decreased by RMB3.676 billion, or 26.45%, from the same period last year, which was mainly due tosignificantly reduced the decline of fuel costs resulting from decreased natural gas price.
Fuel costs
Fuel costs represented the largest portion of the operating expenses for the Company and its subsidiaries. For the year ended December 31, 2015, fuel costsprofitability of the Company and its subsidiaries decreased by 8.52% to RMB59.242 billion from RMB64.763 billion for the year ended December 31, 2014. The fuel costs of domestic operations decreased by RMB3.394 billion, which was primarily attributable to the decreased coal price in the domestic market together with the expansion of the Company. The fuel costs of the Newly Acquired Entities and new generating units were RMB9.855 billion and the fuel costs of the existing generating units decreased by RMB13.249 billion from same period last year. Fuel costs in Singapore decreased by RMB2.126 billion from the same period last year, mainly due to the decline of fuel costs resulting from decreased natural gas price. For the year ended December 31, 2015, the average price (excluding tax) of natural fuel coal consumed of the Company and its domestic subsidiaries was RMB366.30 per ton, representing a decrease of 15.77% from RMB434.88 per ton for the year ended December 31, 2014. The fuel cost per unit of power sold by the Company'sowned coal-fired power plants in China decreased by 13.68% to  RMB173.67/MWh  from RMB201.19/MWh in 2014.
Maintenancesubsidiaries.
94
For the year ended December 31, 2015, the maintenance expenses of the Company and its subsidiaries amounted to RMB4.556 billion, representing an increase of RMB826 million from RMB3.730 billion for the year ended December 31, 2014. The maintenance expenses of domestic operations increased by RMB792 million compared to the same period last year. The maintenance expenses of Singapore operations increased by RMB34 million compared to the same period last year.
Depreciation
For the year ended December 31, 2015, depreciation expenses of the Company and its subsidiaries increased by 23.74% to RMB14.412 billion, compared to RMB11.647 billion in the year ended December 31, 2014; the increase was mainly due to the expansion of the Company's operations. The depreciation expenses of domestic operations increased by RMB2.81 billion compared to the same period last year, of which the Newly Acquired Entities and new generating units accounted for RMB2.637 billion. The depreciation expenses of the operations in Singapore decreased by RMB44 million compared to the same period last year.
Labor
Labor costs consist of salaries to employees and contributions payable for employees' housing funds, medical insurance, pension and unemployment insurance, as well as training costs. For the year ended December 31, 2015, the labor costs of the Company and its subsidiaries amounted to RMB7.752 billion, representing an increase of RMB1.492 billion from RMB6.260 billion for the year ended December 31, 2014. This is mainly attributable to labor cost of the Newly Acquired Entities and new generating units, and increase of the salaries linked to the performance of the Company. The labor costs of the Newly Acquired Entities and new generating units were RMB1.242 billion. Labor costs for Singapore operations decreased by RMB10 million compared to the same period last year.
Other operating expenses (including electricity power purchase costs and service fees paid to HIPDC)
Other operating expenses include environmental protection expenses, land fee, insurance premiums, office expenses, amortization, Tuas Power's electricity power purchase costs, impairment losses, government subsidies and net losses on disposal of properties, plant and equipment. For the year ended December 31, 2015, other operating expenses (including electricity power purchase costs and service fees paid to HIPDC) of the Company and its subsidiaries was RMB12.642 billion, representing a decrease of RMB158 million from RMB12.800 billion for the year ended December 31, 2014. The other operating expenses from domestic operations of the Company and its subsidiaries increased by RMB1.371 billion, of which RMB876 million was from the Newly Acquired Entities and new generating units; the other operating expenses of the existing entities increased by RMB495 million compared to the same period last year. The impairment loss increased RMB968 million compared to the same period last year, mainly consisting of the impairment loss of goodwill, property, plant and equipment and mining rights of Diandong Energy, Yuwang Energy, Pingliang and other entities; the costs of entrusted power generation of certain subsidiaries decreased by RMB114 million; expenses for non-maintenance materials decreased by RMB90 million, pollutants discharge fees decreased by RMB86 million and water-resources fees decreased by RMB53 million compared to the same period last year. Other operating expenses of the operations in Singapore decreased by RMB1.53 billion compared to the same period last year. The electricity purchase cost decreased by RMB1.474 billion compared to the same period last year, which was mainly due to the decrease in purchase volume and price of electricity in retail business.
Financial expenses
Financial expenses consist of interest expense, bank charges and net exchange differences.
Interest expenses
For the year ended December 31, 2015, the interest expenses of the Company and its subsidiaries were RMB7.946 billion, representing an increase of 1.68% from RMB7.814 billion for the year ended December 31, 2014. The interest expenses from domestic operations of the Company and its subsidiaries increased by RMB106 million.
95
The interest expenses from the Newly Acquired Entities and new generating units were RMB1.384 billion and those incurred by the existing entities in China decreased by RMB1.278 billion. The interest expenses of Singapore operations increased by RMB26 million compared to the same period last year.
Net exchange differences and bank charges
For the year ended December 31, 2015, the Company and its subsidiaries recognised a net loss of RMB24 million in net exchange gains and bank charges, representing a net loss increase of RMB15 million compared with the net loss of RMB9 million for the year ended December 31, 2014, mainly because of the decrease of exchange gain resulting from weaken exchange rate between RMB and U.S. dollar for domestic operations. The operations in Singapore recognised  net gains of RMB170 million from net exchange difference and bank charges, representing a net gain increase of RMB120 million from the net gain of RMB50 million in the last year, mainly due to the strengthen exchange rate between U.S. dollar and Singapore dollar.
Share of profits less losses of associates and joint ventures
For the year ended December 31, 2015, the share of profits less losses of associates and joint ventures was RMB1.526 billion, representing an increase of RMB210 million from RMB1.316 billion for the year ended December 31, 2014, mainly due to increased profit of associates and joint ventures.
Income tax expenses
For the year ended December 31, 2015, the Company and its subsidiaries recognized income tax expense of RMB5.699 billion, representing an increase of RMB212 million from RMB5.487 billion for the year ended December 31, 2014. The income tax expense for the domestic operations increased by RMB476 million, primarily attributable to the increase of pre-tax profit.  The income tax expenses of the operations in Singapore decreased by RMB264 million, mainly attributable to RMB204 million of income tax credit granted by Singapore government in the current period.
Net profit, net profit attributable to the equity holders of the Company and non-controlling interests
For the year ended December 31, 2015, the Company and its subsidiaries achieved a net profit of RMB17.259 billion, representing an increase of RMB3.697 billion, or 27.26%, from RMB13.562 billion for the year ended December 31, 2014; the net profit attributable to equity holders of the Company was RMB13.652 billion, representing an increase of RMB2.895 billion from RMB10.757 billion for the year ended December 31, 2014.
The net profit attributable to equity holders of the Company from domestic operations increased by RMB3.082 billion, mainly contributable to the decrease of domestic fuel cost and profits contributed by the Newly Acquired Entities and new generating units. The loss attributable to equity holders of the Company from operations in Singapore was RMB59 million.. This is mainly because of the continued oversupply in Singapore's power and natural gas generation market as result of commenced operations of many generators during the recent years, which led to a continued reduction of local power tariff and significantly decreased profitability of the Company's operations in Singapore.
The profit attributable to non-controlling interests of the Company increased from RMB3.607 billion in 2015 from RMB2.805 billion in 2014, mainly attributable to the increased profit of the non-wholly owned subsidiaries.
C.           
C.Financial position
Comparison of assetsasset items
As of December 31, 2016,2018, consolidated total assets of the Company and its subsidiaries were RMB314.840RMB419.903 billion, representing an increase of 1.93%5.88% from RMB308.866RMB396.590 billion as of December 31, 2015.
96
As of December 31, 2016,2017; total assets of the domestic operations increased by RMB5.312RMB10.230 billion to RMB286.557RMB378.859 billion, including a net increasedecrease of RMB2.004RMB0.437 billion in non-current assets, which is mainly attributable to the newly acquired entities and the capital expendituresexpenditure on construction projects.
As of December 31, 2016,2018, for overseas operation, total assets of the operations in Singapore were RMB28.283RMB27.258 billion, representing an increasea decrease of RMB661RMB703 million as of December 31, 2015.from the same period last year. Non-current assets increased by RMB568RMB4 million to RMB24.174RMB23.813 billion. Total assets of the operations in Pakistan were RMB13.786 billion, primarily attributable to appreciation of Singapore dollar against RMB resulting in higher RMB value of goodwill, power generation license and other non-current assets.assets were RMB10.485 billion.

100
Comparison of liability items
As of December 31, 2016,2018, consolidated total liabilities of the Company and its subsidiaries were RMB212.653RMB303.782 billion, representing an increase of 2.65%5.12% from RMB207.173RMB288.975 billion as of December 31, 2015.2017.
As of December 31, 2016,2018, interest-bearing debts of the Company and its subsidiaries totaled RMB176.098RMB254.170 billion. The interest-bearing debts consist of long-term loans (including those maturing within a year), long-term bonds payable (including those maturing within a year), short-term loans,borrowings, short-term bonds payable and financial leases payable.payable (including those maturing within a year). The interest-bearing debts denominated in foreign currencies amounted to RMB3.290RMB2.279 billion.
As of December 31, 2016,2018, for overseas operation, the total liabilities of the operations in Singapore were RMB15.205RMB15.309 billion, representing a decreasean increase of 4.09%1.40% from RMB15.853RMB15.098 billion as of December 31, 2015, principally due to fair value changes2017. The total liabilities of fuel swap contract.the operations in Pakistan were RMB11.158 billion.
Comparison of equity items
Excluding the impact of profit and profit appropriations, total equity attributable to the equity holders of the Company increased as of December 31, 2016,2018, including a decreasean increase impact arising from the issuance of Yingda insurance financing plan at face value of RMB5 billion in September, 2018, an increase of post-tax impact of RMB890RMB1 million arising from disposal of available-for-sale financial asset and fair value changes of available-for-sale financial assetsother equity instrument investment held by the Company and its subsidiaries, a decrease of post-tax impact of RMB181 millionRMB0.260 billion arising from changes in other comprehensive income of the Company'sCompany’s investees accounted for under equity method, an increasea decrease of post-taxpost- tax impact of RMB1.015RMB0.470 billion arising from fair value changes of cash flow hedge instruments, an increase of RMB540 millionRMB0.335 billion from translation difference of the financial statements of foreign operations.
Non-controlling interests as of 31 December 31, 20162018 increased by RMB1.368RMB1.713 billion.
Major financial position ratios
  2016  2015 
Current ratio  0.28   0.27 
Quick ratio  0.23   0.23 
Ratio of liability to shareholders' equity  2.47   2.46 
Multiples of interest earned  2.84   3.55 

Formula of the financial ratios:
Current ratio = balance of current assets as of the year end / balance of current
liabilities as of the year end
Quick ratio = (balance of current assets as of the year end – net inventories as of the
year end) / balance of current liabilities as of the year end
Ratio of liabilities to shareholders' equity = balance of liabilities as of the year end /
balance of shareholders'
  2018  2017 
Current ratio  0.45   0.31 
Quick ratio  0.38   0.26 
Ratio of liability to equity holders' equity  3.22   3.30 
Multiples of interest earned  1.13   1.23 

Formula of the financial ratios:
Current ratio = balance of current assets as of the year end / balance of current liabilities as of the year end
Quick ratio = (balance of current assets as of the year end – net inventories as of the year end) / balance of current liabilities as of the year end
Ratio of liabilities to equity holders' equity = balance of liabilities as of the year end / balance of equity holders' equity (excluding non-controlling interests) as of the year end
Multiples of interest earned = (profit before tax + interest expense) / interest earned = (profit before tax + interest expense) / interest
expenditure (inclusive of capitalized interest)
The current ratio increased as of December 31, 20162018 compared to that of December 31, 20152017 mainly due to increase of current assets especially inventories and other current assets.bank balances and cash. The ratio of liabilities to shareholders'equity holders’ equity as of 31 December 31, 2016 increased2018 decreased compared to that of 31 December 31, 20152017 mainly due to the increase in loansissuance of Yingda insurance financing plan at the year end.face value of RMB5 billion. The multiples of interest earned decreased mainly due to reduced pre-tax profit for the year ended 31 December 31, 2016.2018.
97
D.           
D.Liquidity and cash resources
The primary sources of funding for the Company and its subsidiaries have been cash provided by internal funds from operating activities, short-term and long-term loans and proceeds from issuances of bonds, and the

101
primary use of funds have been for working capital, capital expenditure and repayments of short-term and long-term borrowings.
Cash flows from operating activities
  For the Year Ended December 31, 
  2018  2017  2016 
  RMB'000  RMB'000  RMB'000 
Cash flows from operating activities         
Profit before income tax expense
  1,973,147   2,801,733   13,813,138 
Non-cash items adjustments  30,593,272   28,980,725   21,255,080 
Changes in working capital  (2,391,540)  (718,218)  1,050,309 
Interest received
  173,986   136,134   84,806 
Income tax expense paid
  (1,620,887)  (2,003,011)  (4,692,509)
Net cash provided by operating activities  28,727,978   29,197,363   31,510,824 

For the year ended 31 December 2018, net cash provided by operating activities of the Company and its subsidiaries was RMB28.728 billion, representing a decrease of 1.61% from last year, which is principally because that the Company’s revenue increase from electricity growth and rising electricity prices in the reporting period was offset by the increase in fuel purchase costs. Net cash provided by operating activities in Singapore was RMB830 million.
  For the Year Ended December 31, 
  2016  2015  2014 
  RMB'000  RMB'000  RMB'000 
Cash flows from operating activities         
Profit before income tax expense  13,813,138   22,958,050   19,049,580 
Non-cash items adjustments  21,255,080    24,484,383   20,391,789 
Changes in working capital  1,050,309    1,013,467   (226,180)
Interest received  84,806    102,813   97,374 
Income tax expense paid  (4,692,509)  (6,196,005)  (5,992,496)
Net cash provided by operating activities  31,510,824    42,362,708   33,320,067 
For the year ended December 31, 2017, net cash provided by operating activities of the Company and its subsidiaries was RMB29.198 billion, representing a decrease of 7.34% from last year, mainly attributable to the comprehensive effect of increased cash outflow for increased fuel price and increased cash inflow for raised power generation and tariff. Net cash provided by operating activities in Singapore was RMB830 million.
For the year ended December 31, 2016, net cash provided by operating activities of the Company and its subsidiaries was RMB31.511 billion, representing a decrease of 25.62% from last year, mainly attributable to reduced operating revenue as a result of a decrease of power generation and tariff. Net cash provided by operating activities in Singapore was RMB772 million.
For the year ended December 31, 2015, net cash provided by operating activities of the Company and its subsidiaries was RMB 42.363 billion, of which RMB 0.871 billion was provided by the operating activities in Singapore.

For the year ended December 31, 2014, net cash provided by operating activities of the Company and its subsidiaries was RMB 33.320 billion, of which RMB 0.805 billion was from its operating activities in Singapore.
Cash flows used in investing activities
  For the Year Ended December 31, 
  2018  2017  2016 
  RMB'000  RMB'000  RMB'000 
Cash flows used in investing activities         
Payment for the purchase of property, plant and equipment  (20,613,314)  (25,798,009)  (20,144,903)
Proceeds from disposals of property, plant and equipment  127,182   286,609   144,346 
Prepayments of land use rights            (94,684)  (213,928)  (89,430)
Payment for the purchase of other non-current assets  30,107   (33,498)  (50,653)
Cash dividend received            618,592   1,419,380   1,057,642 
Payment for investment in associates and joint ventures  (463,259)  (301,916)  (276,118)
Cash paid for acquiring available-for-sale financial assets  —   (5,600)  - 
Cash paid for acquiring other equity instrument investments  (450)  —   — 
Cash consideration paid for acquisitions of subsidiaries, net of cash acquired  (674,845)  (10,817,107)  157,421 
Cash received from disposal of available-for-sale financial assets  —   2,186,758   1,474,301 
Cash received from disposal of a subsidiary            -   530,437   - 
Others            694,789   998,049   77,748 
Net cash used in investing activities            (20,375,882)  (31,748,825)  (17,649,646)
Net cash used in investing activities was RMB20.376 billion, representing an decrease of 35.82% from last year, which is mainly due to less cash outflows from relatively smaller acquisitions during this year.

  For the Year Ended December 31, 
  2016  2015  2014 
  RMB’000  RMB’000  RMB’000 
Cash flows used in investing activities         
Payment for the purchase of property, plant and equipment  (20,144,903)  (24,191,285)  (19,858,216)
Proceeds from disposals of property, plant and equipment  144,346   109,013   70,712 
Prepayments of land use rights  (89,430)  (136,045)  (500,100)
Payment for the purchase of other non-current assets  (50,653)  (6,981)  (21,576)
Cash dividend received  1,057,642   937,189   565,334 
Payment for investment in associates and joint ventures  (276,118)  (889,780)  (266,877)
Cash consideration paid for acquisitions of subsidiaries, net of cash acquired  157,421   (8,887,882)  (17,991)
Cash received from disposal of available-for-sale financial assets  1,474,301   -   - 
Cash received from disposal of a subsidiary  -   -   503,809 
Others  77,748   50,759   54,092 
Net cash used in investing activities  (17,649,646)  (33,015,012)  (19,470,813)
102
Net cash used in investing activities was RMB31.749 billion for the year ended December 31, 2017, representing an increase of 79.88% from last year, mainly due to consideration paid for newly acquired entities in 2017.
Net cash used in investing activities was RMB17.650 billion for the end ofyear ended December 31, 2016, representing a decrease of 46.54% from last year, mainly due to consideration paid for newly acquired entities in 2015.
Cash flows from financing activities
  For the Year Ended December 31, 
  2018  2017  2016 
  RMB'000  RMB'000  RMB'000 
Cash flows from financing activities         
Issuance of short-term bonds  40,000,000   30,988,679   32,982,340 
Repayments of short-term bonds
  (39,500,000)  (47,000,000)  (25,000,000)
Proceeds from short-term loans
  77,005,025   107,564,128   85,689,874 
Repayments of short-term loans  (98,345,708)  (96,378,054)  (77,904,489)
Proceeds from long-term loans  48,859,376   32,706,327   15,978,023 
Repayments of long-term loans
  (34,269,623)  (17,390,982)  (20,702,421)
Issuance of long-term bonds
  13,999,807   7,800,000   4,200,000 
Repayment of long-term bonds
  (4,000,000)  (3,300,000)  (11,500,000)
Interest paid  (10,987,871)  (10,080,102)  (7,344,781)
Net proceeds from the issuance of new Shares  3,245,330   -   - 
Net proceeds from the issuance of other equity instruments  5,000,000   4,999,950   - 
Net capital injection from non-controlling interests of the subsidiaries  725,683   838,084   285,620 
Dividends paid to shareholders of the Company  (1,520,038)  (4,352,973)  (7,206,220)
Dividends paid to non-controlling interests of the subsidiaries  (1,265,451)  (2,184,145)  (2,695,378)
Government grants
  -   590,629   233,276 
Payment for finance leasing
  (637,026)  (695,019)  (571,485)
Others
  (552,574)  (93,342)  (46,209)
Net cash (used in) / generated from financing activities
  (2,243,070)  4,013,180   (13,601,850)
Net cash used in financing activities was RMB2.243 billion, while it was net cash inflow of RMB4.013 billion in 2017. This was mainly due to repayment of more borrowings by the Company in this year compared to last year.
Net Cash used in investingcash generated from financing activities was RMB 33.015RMB4.013 billion for the year ended December 31, 2014, mainly attributable2017, representing an increase of RMB17.615 billion to the consideration paid fornet cash outflow, which was RMB13.602 billion, from the Newly Acquired Entities from business combination under common control.

Net Cash usedsame period last year. This was mainly due to the increase of loans and bonds issued by the Company and its subsidiaries in investing activities amountedthis year as compared to RMB 19.471 billion, mainly attributable to capital expenditure for construction projects.
98
Cash flows from financing activities

  For the Year Ended December 31, 
  2016  2015  2014 
  RMB’000  RMB’000  RMB’000 
Cash flows from financing activities            
Issuance of short-term bonds  32,982,340   18,980,000   17,971,000 
Repayments of short-term bonds  (25,000,000)  (18,000,000)  (15,000,000)
Proceeds from short-term loans  85,689,874   67,298,044   61,503,204 
Repayments of short-term loans  (77,904,489)  (62,600,955)  (55,896,200)
Proceeds from long-term loans  15,978,023   9,943,689   9,647,090 
Repayments of long-term loans  (20,702,421)  (12,799,719)  (17,522,953)
Issuance of long-term bonds  4,200,000   -   3,988,000 
Repayment of long-term bonds  (11,500,000)  (5,000,000)  (5,700,000)
Interest paid  (7,344,781)  (8,677,316)  (8,097,216)
Net proceeds from the issuance of new H shares  -   4,684,314   2,453,986 
Net capital injection from non-controlling interests of the subsidiaries  285,620   623,107   606,719 
Dividends paid to shareholders of the Company  (7,206,220)  (5,535,655)  (5,341,046)
Dividends paid to non-controlling interests of the subsidiaries  (2,695,378)  (2,954,194)  (1,474,329)
Proceeds from sales leaseback classified as finance lease  -   100,000   1,500,000 
Cash received from disposal of non-controlling interests of a subsidiary  -   -   384,702 
Others  (384,418)  (201,974)  82,863 
Net cash used in financing activities  (13,601,850)  (14,140,659)  (10,894,180)
the same period last year.
Net cash used in financing activities was RMB13.602 billion for the year ended December 31, 2016, representing a decrease of 3.81% from last year.
Net cash outflow used in financing activities in 2015 amounted to RMB14.141 billion, which was largely attributable to repayment of short-term and long-term borrowings.
Net cash outflow used in financing activities in 2014 amounted to RMB10.894 billion, which was largely attributable to repayment of short-term and long-term borrowings.
Cash and cash equivalents
  For the Year Ended December 31, 
  2018  2017  2016 
  RMB'000  RMB'000  RMB'000 
Effect of exchange rate
  26,266
  10,171   72,923 
Net increase in cash and cash equivalents  6,135,292   1,471,889   332,251 
Cash and cash equivalents, beginning of the year  9,282,390   7,810,501   7,478,250 
Cash and cash equivalents as of the end of the year  15,417,682   9,282,390   7,810,501 
  For the Year Ended December 31, 
  2016  2015  2014 
  RMB’000  RMB’000  RMB’000 
Effect of exchange rate  72,923   32,846   (58,379)
Net increase / (decrease) in cash and cash equivalents  332,251   (4,760,117)  2,896,695 
Cash and cash equivalents, beginning of the year  7,478,250   12,238,367   9,341,672 
Cash and cash equivalents as of the end of the year  7,810,501   7,478,250   12,238,367 


103
As of December 31, 2018, the cash and cash equivalents of the Company and its subsidiaries denominated in RMB, Singapore dollar, U.S. dollar, Pakistan Rupee were RMB14.317 billion, RMB927 million, RMB141 million and RMB33 million, respectively.
As of December 31, 2017, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, Singapore dollar and U.S. dollar were RMB8.130 billion, RMB836 million and RMB316 million, respectively.
As of December 31, 2016, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, Singapore dollar and U.S. dollar were RMB6.620 billion, RMB870 million and RMB320 million, respectively.
As of December 31, 2015, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, Singapore dollar and U.S. dollar were RMB5.788 billion, RMB1.130 billion and RMB0.560 billion, respectively.
As of December 31, 2014, the cash and cash equivalents of the Company and its subsidiaries denominated in Renminbi, HK dollar, Singapore dollar and U.S. dollar were RMB7.976 billion, RMB2.445 billion, RMB1.064 billion and RMB0.753 billion, respectively.
Capital expenditure and cash resources
Capital expenditures on acquisition activities
On October 14, 2016, the Company signed an agreement for the transfer of equity interests in Certain Companies with Huaneng Group (the "Transfer Agreement"). Pursuant to the Transfer Agreement, the Company agreed to purchase (i) 80% equity interest of Huaneng Shandong Power Limited; (ii) 100% equity interest of Huaneng Jilin Power Limited; (iii) 100% equity interest of Huaneng Heilongjiang Power Limited; and (iv) 90% equity interest of Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. from Huaneng Group for the consideration of RMB 15.114 billion. According to the terms of the agreements, the Company paid 50% of the consideration for such transaction to Huaneng Group in January 2017. The aforementioned acquired entities will be included in the Company’s consolidated financial statements in 2017.
99
Capital expenditures for infrastructure construction and renovation projects
The capital expenditures for the year ended 31 December 31, 20162018 were RMB20.285RMB20.707 billion, mainly for construction and renovation of projects, including RMB1.558RMB2.931 billion for Shandong Power project, RMB1.679 billion for Yancheng Dafeng New Energy project, RMB1.114 billion for ShangAn Power Plant project, RMB789 million for Heilongjiang Power Generation project, RMB746 million for Anyang Energy project, RMB711 million for Dongguan Combined Cycle project, RMB661 million for Luoyuan Power Generation project, RMB598 million for Nanjing Xingang Integrated Energy project, RMB505 million for Kangbao Wind Power project, RMB451 million for Jiangxi Clean Energy project, RMB450 million for Rudong Baxianjiao Offshore Wind Power project, RMB878RMB435 million for Beijing CogenerationZhongxiang Wind Power project, RMB594RMB406 million for Hainan Power Generation project, RMB587RMB346 million for Xianrendao CogenerationFengjie Wind Power project, RMB558RMB343 million for JiangxiBeijing Thermal Power project, RMB335 million for Dalian Thermal Power project, RMB303 million for Jiuquan Wind Power project, RMB278 million for Guigang Clean Energy project, RMB537RMB267 million for Guilin Gas Distributed Energy project, RMB534 million for TongweiHuaining Wind Power project, RMB520RMB257 million for Jiangyin Combined Cycle project, RMB243 million for Mianchi Clean Energy project, RMB222 million for Diandong Energy project, RMB216 million for ilin Power Generation project, RMB207 million for Fuyuan wind power project, RMB206 million for Luoyuan Port project, RMB205 million for Luohuang Power Generation project, RMB198 million for Dezhou Power Plant, RMB194 million for Yizheng Wind Power project, RMB171 million for Dalian Power Plant project, RMB167 million for Shanxi Comprehensive Energy project, RMB165 million for Suzhou combined cycleCo-generation Power project, RMB493RMB159 million for Taiyuan Combined CycleChangxing Power Plant project, RMB467RMB159 million for Mianchi CogenerationFuzhou Power Plant project, RMB458RMB146 million for Yuhuan project, RMB448 million for Luoyuan Power project, RMB423 million for Dezhou project, RMB405 million for Shang'an project, RMB401 million for Qinbei Power project, RMB384 million for Nanjing Cogeneration project, RMB348 million for Wuhan Power project, RMB325 million for JieshanPanzhou Wind Power project, RMB323RMB146 million for ChangxingHuaiyin Power project, RMB299RMB144 million for LuoyangDiandong Yuwang Energy project, RMB141 million for Chaohu Power project, RMB274RMB139 million for Weihai Power project, RMB267RMB119 million for Guanyun CogenerationLuoyang Co-generation Power project RMB259and RMB119 million for Shidongkou Power project, RMB252 million for Yingcheng Cogeneration project, RMB239 million for Fuzhou project.Tongshan Wind Power. The capital expenditures of the Company'sCompany’s operations in Singapore were RMB151RMB180 million. The expenditures on other projects were RMB8.303RMB3.456 billion.
The above capital expenditures are sourced mainly from internal capital, cash flows provided by operating activities, and debt and equity financing. In the next few years, the Company will maintain its leading position in clean and efficient traditional energy, make further efforts to develop new energy and promote structural adjustment. It is expected that there will still be significant capital expenditures. The Company expects to finance the above capital expenditures through internal capital, cash flows provided by operating activities, and debt and equity financing.
The Company expects to have significant capital expenditures in the next few years. During the course, the Company will make active efforts to improve project planning process on a commercially viable basis. The Company will also actively develop newly planned projects to pave the way for its long-term growth. The Company expects to finance the above capital expenditures through internal capital, cash flows provided by operating activities, and debt and equity financing.
The cash requirements, usage plans and cash resources of the Company for the next year are as following:

104

Capital Expenditure Project 
Capital expenditure Plan for
2017
(RMB100 2019 (RMB100 million)
 Cash resources arrangements Financing costs and note on use
Thermal power projects 58.7441.70 Including internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Hydropower projects 00.23 Including internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Wind power projects 103239.54 Including internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Coal mining projects 07.40 Including internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Photovoltaic power projects 13.500.74 Including internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
OthersPort 02.04 Including internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Technology renovation 51.8362.47 Including internal cash resources and bank loans Within the floating range of benchmark lending interest rates of the PBOC
Cash resources and anticipated financing costs
The Company expects to finance its capital expenditure and acquisition costs primarily with internal capital, cash flow provided by operating activities, and debt and equity financing.
Good operating results and sound credit status provide the Company with strong financing capabilities. As of December 31, 2016,2018, the undrawn banking facilities available to the Company and its subsidiaries amount to approximately RMB262.8RMB268.8 billion, which are granted by Bank of China, China Construction Bank and Industrial and CommercialAgricultural Bank of China, etc.China.
The Company completed issuances of unsecured super short-term bonds in two16 installments on February 24, March 2, March 21, March 23, May 2, May 2, May 18, May 30, June 1, August 4, 201624, October 19, November 16, November 22, November 23, November 28 and October 14, 2016, eachDecember 6 of 2018, at a principal amount of RMB3RMB4 billion, RMB2 billion, RMB2 billion, RMB4 billion, RMB2.5 billion, RMB4 billion, RMB2 billion, RMB2 billion, RMB4 billion, RMB2 billion, RMB2.5 billion, RMB2 billion, RMB2 billion, RMB2 billion, RMB2 billion and RMB1 billion, with nominal annual interest rates of 2.5%4.35%, 4.35%, 4.40%, 4.45%, 4.25%, 4.08%, 3.98%, 3.80%, 4.05%, 2.80%, 3.20%, 2.78%, 3.10%, 3.05%, 2.78% and
100
2.6% 3.30%, respectively. Each installment of the bonds was denominated in RMB, issued at par value, and would successively mature in 36590 days, from the value date.
The Company completed issuances of unsecured super short-term bonds in nine installments on March 3, March 9, March 23, April 8, April 20, May 26, July 13, November 990 days, 150 days, 180 days, 180 days, 150 days, 180 days, 90 days, 180 days, 90 days, 180 days, 90 days, 180 days, 180 days, 90 days and December 1, 2016, at a principal amount of RMB2 billion, RMB2 billion, RMB2 billion, RMB4 billion, RMB3 billion, RMB3 billion, RMB4 billion, RMB2 billion and RMB2 billion with nominal annual interest rates of 2.59%, 2.48%, 2.48%, 2.42%, 2.62%, 2.73%, 2.50%, 2.79% and 3.45%, respectively. Each installment of the bonds was denominated in RMB, issued at par value, and would mature in 270 days from the value date.
The Company completed issuance of one installmentissued two tranches of unsecured super short-term bond on November 16, 2016 at a principal amountmedium-term notes of RMB3 billion and RMB2 billion on May 2 and July11, 2018 with nominal annual interest rates of 4.80% and 4.41%, respectively. The notes were denominated in RMB and issued at par value with maturity of three years from the date of issue.
The Company issued unsecured non-public debt financing instrument of RMB2.5 billion on July 26, 2018 with a nominal annual interest rate of 2.98%4.68%. The bondinstrument was denominated in RMB and issued at par value and would maturewith maturity of in 180 daysthree years from the value date.
The Company completed issuancesissued two tranches of unsecured corporate bonds in two installments on June 8, 2016April 4 and September 10, 2018, at a principal amount of RMB3RMB1.5 billion and RMB1.2RMB5 billion, respectively, with nominal annual interest rates of 3.48%4.90% and 3.98%5.05%, respectively. Each installment of theThe bonds waswere denominated in RMB and issued at parface value and would mature in five yearswith maturity of three and ten years respectively, from the value date.date of issue, respectively.
As of December 31, 2016,2018, short-term loans of the Company and its subsidiaries totalled RMB57.669were RMB61.039 billion (2015: RMB49.883(2017: RMB80.251 billion). Loans from banks were charged at annual interest rates ranging from 2.77%3.30% to 4.35%11.51% per annum (2015: 3.19%(2017: 3.74% to 5.60%5.50%).
Short-term

105
As of December 31, 2018, short-term bonds payable by the Company and its subsidiaries were RMB27.311RMB11.541 billion (2015: RMB19.348(2017: RMB11.068 billion).
As of December 31 2016,2018, long-term loans (including those maturing within a year) of the Company and its subsidiaries totalled RMB74.551were RMB150.169 billion (2015: RMB78.379(2017: RMB125.129 billion), includingof which RMB denominated borrowings of RMB58.876loans were RMB126.844 billion (2015: RMB62.441(2017: RMB110.073 billion), U.S.US dollar denominated loans ofwere approximately US$4101.548 billion (2017: US$348 million), and Euro loans were approximately €22 million (2015: US$473 million), Euro denominated loans of approximately €39 million (2015: €49(2017: €30 million), Singapore dollar denominated loans ofwere S$2.5812.472 billion (2015:(2017: S$2.6972.539 billion), and Japanese yen denominated loans of ¥2.703were ￥2.482 billion (2015: ¥2.812(2017: ￥2.593 billion). Among them, all loans denominated in US dollar loans and Singapore dollar wereloans are all floating rate and loans, denominated in alland other foreign currencies werecurrency loans are fixed rate. Asrate loans. For the financial year ended 31 December 2018, the annual interest rates of December 31, 2016, long-term bank loans of the Company and its subsidiaries had interest rates ranging fromwere between 0.75% to 5.65%7.29% per annum (2015:(2017: 0.75% to 6.55%6.03%).
The Company and its subsidiaries will closely monitor any change in the exchange rate and interest rate markets and cautiously assess the currency rate and interest rate risks.
Combining the current development of the power generation industry and the growth of the Company growth, the Company will make continuous efforts to not only meet cash requirements of daily operations, constructions and acquisitions, but also establish an optimal capital structure to minimize the cost of capital and manage financial risks through effective financial management activities, thus maintaining sustainable and stable returns to the shareholders.equity holders.
Other financing requirements
The objective of the Company is to bring steadily growing returns to shareholdersequity holders in the long run. In line with this objective, the Company follows a proactive, stable and balanced dividend policy. In accordance with the profit appropriation plan of the board of directors of the Company (subject to the approval at annual general meeting) for 2016,2018, the Company expects to pay a cash dividend of RMB4.408RMB1.570 billion.
Maturity profile of loans and bonds
The following table sets forth the maturity profile of the Company's borrowings as of December 31, 2016.2018.
101
Maturity Profile
(RMB billion) 2017  2018  2019  2020  2021 
Maturity Profile          
(RMB 100 million)2019 2020 2021 2022 2023 
                         
Principal amount planned for repayment  97.530   16.090   13.203   9.221   9.407   971.60   315.01



465.98



199.14



113.13
 
Interest amount planned for repayment  5.545   3.150   2.443   1.755   1.386   102.93   64.67



49.72



33.97



25.16
 
Total  103.075   19.240   15.646   10.976   10.793   1,074.53   379.68



515.70



233.11



138.29
 
Note: This table was prepared by the principal and interest amount actually repaid accordingly to contracts already signed. The amount of the principalprinciple to be repaidpaid in 20172019 is relatively large because this includes expected repayment of the maturity of short-termshort- term loans and short-term bonds.
E.            
E.Trend information
The major trend of the electricity power market
It is predicted by China Electricity Council that,Regarding the electricity market, considering market environment at home and abroad, assuming no occurrence of far-reaching extreme climate changes in 2017,2019, total electricity consumption nationwide will grow by 3% and 2017 will see5.5%, with newly installed generatinggeneration capacity of approximately 110 million KW,kW, of which non-fossil energy capacitythermal generation units will account for 60 million kW; the total installed capacity nationwide is expected to reach 1.75 billion kW, an 6% increase compared to that of 2016, of which non-fossil energy capacity will account for 660 million kW.
represent a slight increased percentage from last year. In 2017, electricity supply and demand in China will generally be balanced, with abundant surplus capacity in some regions, balanced supply and demand in Northern region, broadly balanced supply in Central, Eastern, and Southern regions, where a number of provinces are abundant, and big surplus in Northeastern and Northwestern regions. In 2017, the2019, annual power generation utilization hours is expected to be around 3,600 hours, and the utilization hours of thermal generating equipmentunits are estimated down to be around 4,000 hours.4,400 hours, representing slight increase from last year. In 2019, the Company will actively participate in the reform of power market, strengthen research and study of power supply and demand and market competition, and design flexible and effective marketing strategies. The Company will also actively participate in power market transactions, attach importance to power sales business, actively participate in the building of electricity trading market and auxiliary service market, continuously explore new business opportunities, make

106
focused efforts to offer value-added services so as to consolidate high-quality client base and improve client stickiness, with the view to gradually transitioning from traditional energy vendor to integrated energy supplier, further enhancing the Company’s market competitiveness, and strengthening the Company’s position in the industry and market.
The trend of the fuel supply
According to the Center for Forecasting Science of Chinese Academy of Sciences, thermal generating units are expected to use less coal in 2017 than in 2016 as a result of the government policy to reduce production capacities inIn the coal sector and a weakened power market, in China. Total coal consumptionsupply is expected to experience a year-on-yearbe sufficient with increased production from operation of new and expansion coal production projects which have been approved by competent Chinese government agencies, while the effect of environmental protection and safety production inspections, though continuing to weigh upon coal production, will be lessened in 2019. In spite of coal demand from large-scale infrastructure and other projects, consumption of coal by thermal power generators is expected to decrease of 3% in 2017, while excessive coal supply will continue due to the generally weak-supply-and-weak-demandsoft macro-economic conditions, uncertainty of China-U.S. trade relations, industrial transformation and structural-oversupply situation nationwide.upgrading, as well as increased supply of UHV-based clean energy and nuclear power. The railway capacity continues to increase as the operation of Menghua Railway transport and air freight capacity will further loosen. Considering the effect of RMB exchange rate and a gradually stabilized domestic coal market, less coal may be imported than in 2016 while coal imports areis expected to have certain impact on domestic coal price.ease the resources shortage in “two lakes and one river.” The Company estimates thatgeneral supply and demand in the coal price in 2017 will gradually stabilize after fluctuation within a narrow range.
The Company will closely monitor the changes in policieselectricity and coal market enhance its cooperationin 2019 will be eased compared with competitive major mines, continuously explore new sourcing channels, conduct bidding of existing commodities, perfect the imported coal business, strengthentight balance in 2018, with the refining management ofprice moving downward and volatility further reduced. The Coal prices will gradually move to the fuel and strive to control fuel costs.green range.
The trend of capital market and foreign exchange
The interest-bearing debtsIn terms of the Company are mostly denominated in RMB. The interest rates applicable to RMB loan contracts will be determined and regularly adjusted based on the adjustment of benchmark lending interest rates published by the PBOC. The PBOC will continue to exercise a stable and elastic moderate currency policy, which will help reduce financing costs of the Company.
In the Singaporean capital market, the SOR interest rate will continueChinese government is expected to rise as a resultimplement active fiscal policies and sound monetary policies. The fiscal policies would be focused on reducing taxes and other fiscal levies with the view to addressing, in collaboration with the implementation of increase of US dollar lending rates as well as depreciation of Singapore dollar, whichmonetary polies, funding difficulties and prohibitive funding prices encountered by business enterprises. The sound monetary policies would be implemented to underscore overall economic stability, strengthen counter-cyclical monetary administration, optimize credit structure, and maintain reasonably adequate liquidity. Accordingly, it is anticipatedexpected that the market would have reasonably sufficient funding in 2019 and funding costs are expected to increase the financing costs of Tuas Power.
We will closely watch the changes in domestic and overseas capital marketsand maintain its good reputation on the capital markets, make reasonable financing arrangements, explore new financing methods, and strive to control financing costs.be consistent with slight decline.
102
F.            
F.Employee benefits
As of December 31, 2016,2018, the Company and its subsidiaries had 42,21057,970 employees within and outside the PRC. The Company and its subsidiaries provide employees with competitive remuneration and link such remuneration to operating results to provide incentives for the employees. Currently, the Company and its subsidiaries do not have any stock or option based incentive plan.
All employees of the Company have entered into labor contracts with the Company. The Company's standard contract includes description of the position, responsibilities, compensations and causes of termination. The terms of the labor contracts vary and they generally range from one to five years. The contracts are typically renewable upon expiration by mutual agreement of the Company and the relevant employee.
The Company is unionized, both at its head office and with respect to all power plants. Labor unions are intended to protect the rights of employees, while allowing the Company to achieve economic objectives. They encourage employees' participation in the Company's decision-making process, and serve as mediators in any dispute between the Company and its employees. The Company has experienced no occurrence of any strike or labor dispute which havehas impact upon the Company's operations. The Company believes that the Company and its employees are in a good relationship.
Compensation of our employees consists of salaries, bonuses and allowances. Compensation is linked to performance of the Company as well as the individual employees. Our employees are also entitled to certain education, healthcare and other benefits and allowances provided by the Company.

107
The Company maintains social security schemes for its employees pursuant to government regulations. These social security benefits are subject to changes in the relevant law and policy.
Based on the development plans of the Company and its subsidiaries and the requirements of individual positions, together with the consideration of specific characteristics of individual employees, the Company and its subsidiaries tailored various training programs for their employees on management, skills, technical skillstechnology and marketingthe skills. These programs have enhanced both the knowledge and operationalcomprehensive skills of the employees.
G.           
G.Guarantees for loans and restricted assets
As of December 31, 2016,2018, the Company provided guarantees of approximately RMB12.379RMB12.273 billion for the long-term bank borrowingsloans of Tuas Power.
As of December 31, 2016,2018, the details of secured loans of the Company and its subsidiaries were as follows:
(1)As of December 31, 2016, short-term loans of RMB126 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.
(2)As of December 31, 2016, a long-term loan of approximately RMB2.902 billion of a subsidiary of the Company was secured by certain property, plant and equipment with net book value of approximately RMB3.105 billion.
(3)As of December 31, 2016, the long-term loans of approximately RMB9.032 billion were secured by future electricity revenue of the Company and its subsidiaries.


103
As of December 31, 2016,2018, short-term loans of RMB461 million (2017: RMB24 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 of December 31, 2018, long-term loans of RMB0.986 billion (2017: RMB4.605 billion) of the Company and its subsidiaries were secured by certain property, plant and equipment with net book value of approximately RMB1.756 billion (2017: RMB5.166 billion).

As of December 31, 2018, long-term loans of approximately RMB8.938 billion (2017: RMB10.559 billion) were secured by future electricity and heating revenue of the Company and its subsidiaries.
As of December 31, 2018, the restricted bank deposits of the Company and its subsidiaries were RMB71 million.RMB430 million (2017: RMB82 million).
As of December 31, 2016,2018, the property, plant and equipment leased under finance lease of the Company and its subsidiaries with net book value amounted to RMB1.763 billion.RMB1.774 billion (2017: RMB2.565 billion).
H.           
H.Off-balance sheet arrangements
As of December 31, 2016,2018, there were no off-balance sheet arrangements which have or are reasonably likely to have an effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
I.            
I.Performance of significant investments and their prospects
The Company acquired a 25% equity interest in Shenzhen Energy Group for RMB2.39 billion on April 22, 2003. In 2011, Shenzhen Energy Group divided into a remainder company Shenzhen Energy Groupof the same name and a new company Shenzhen Energy Management Company (“SE Management”), and the Company holds 25% equity interests in each of the two successors. The Company acquired 200 million shares from Shenzhen Energy Corporation ("(“Shenzhen Energy"Energy”), a subsidiary of Shenzhen Energy Group in December 2007. Shenzhen Energy allotted shares with its capital surplus in 2011. In February 2013, Shenzhen Energy merged Shenzhen EnergySE Management Corporation through the combination of a directional seasoned offering and cash payment to the shareholdersequity holders of Shenzhen Energy Management Corporation,SE management, Shenzhen State-owned Assets Administration Commission and the Company. After the merger, the Company directly held 661 million shares of Shenzhen Energy, representing 25.02% of its equity interests. In 2016,2018, Shenzhen Energy distributed two sharesRMB0.80 of stockcash dividend out of every 10 shares to its shareholders,equity holders, and therefore the Company held 992 million shares of Shenzhen Energy by December 31, 2016.2018. These investments brought a net profit attributable to the equity holders of the Company of RMB435RMB148 million for the Company for the year ended December 31, 20162018 under IFRS. This investment is expected to provide steady returns to the Company.
The Company held 60% direct equity interest in Sichuan Hydropower as of December 31, 2006. In January 2007, Huaneng Group increased its capital investment in Sichuan Hydropower by RMB615 million, thus reducing the Company'sCompany’s equity interest in Sichuan Hydropower to 49% and making Huaneng Group the controlling

108
shareholder of Sichuan Hydropower. This investment brought a net profit attributable to the equity holders of the Company of RMB85RMB111 million for the year ended 31 December 31, 20162018 under IFRS. This investment is expected to provide steady returns to the Company.
J.            
J.Tabular disclosure of contractual obligations and commercial commitments
A summary of payments due by period of our contractual obligations and commercial commitments as of December 31, 20162018 is shown in the tables below. A more complete description of these obligations and commitments is included in the Notes to Financial Statements as referenced below.
Contractual Cash Obligations
(RMB in millions)
 2017   2018-2019   2020-2021  Thereafter  Total 
Contractual Cash Obligations               
(RMB in millions) 2019   2020-2021   2022-2023  Thereafter  Total 
                                  
Long-term loans from Huangeng Group and its subsidiaries(1)
  855   1,668   1,160   135   3,818 
Long-term bank loans and other loans(1)
  8,706   22,502   15,389   24,136   70,733 
Long-term bonds(2)
  3,300   8,000   3,000   1,200   15,500 
Long-term loans from Huangeng Group and its subsidiaries(1)  610   1,866   902   1,347   4,725 
Long-term bank loans and other loans(1)  20,010   61,419   25,325   38,690   145,444 
Long-term bonds(2)  4,000   14,800   5,000   6,200   30,000 
Interest payments  2,987   4,653   2,836   3,134   13,610   6,496   9,160   5,127   5,290   26,073 
Operating Lease – Head Offce(3)
  115   172   -   -   287 
Operating Lease – Huabei Branch(3)
  6   6   -   -   12 
Operating Lease – Nanjing Power Plant(3)
  2   9   9   51   71 
Operating Lease – Shantou Haimen Power(3)
  11   -   -   -   11 
Operating Lease – Xingang Heating Co., Ltd.(3)
  12   -   -   -   12 
Operating Lease – Hualu Sea Transportation Ltd.(3)
  10   -   -   -   10 
Operating Lease – Tuas Power Generation Pte Ltd.(3)
  25   43   48   911   1,027 
Operating Lease – Head Office(3)  72   -   -   -   72 
Operating Lease – Huabei Branch(3)  9   -   -   -   9 
Operating Lease – Shanghai Branch(3)  23   26   6   -   55 
Operating Lease – Guangxi Branch(3)  1   1   -   -   2 
Operating Lease – Guizhou Branch(3)  2   5
   2   -   9 
Operating Lease – Chongqing Branch(3)  -   1   -   -   1 
Operating Lease – Guangxi Clean Power Branch(3)   -   1
   -
   -
   1
 
Operating Lease – Nanjing Power Plant(3)  2   5   4   55   66 
Operating Lease – Heinongjiang Power(3)  28   52   49   96   225 
Operating Lease – Shandong Power(3)  3   7   5   34   49 
Operating Lease – Suzhou Thermal Power(3)  1   1   1   -   3 
Operating Lease – Zhumadian Fengdian Power(3)  24   8   -   -   32 
Operating Lease – Mianchi Clean Power(3)  -   4   -   -   4 
Operating Lease – Anyang Energy(3)  4   -   -   -   4 
Operating Lease – Ruzhou Clean Power(3)  -   2   -   -   2 
Operating Lease – Henan Puyang Clean Energy(3)  -   3   -   -   3 
Operating Lease – Shanxi Comprehensive Energy(3)  2   4   4   38   48 
Operating Lease – Tuas Power Generation Pte Ltd.(3)  23   48   52   939   1,062 
  31,310   87,413   36,477   52,689   207,889 
                    
Other commercial commitments                    
(RMB in millions)  2019   2020-2021   2022-2023  Thereafter  Total 
                    
Long – term gas purchase contract(4)  14,311   28,840   24,583   47,417   115,151 

104
______________________________
Contractual Cash Obligations
(RMB in millions)
 2017   2018-2019   2020-2021  Thereafter  Total 
                     
   16,029   37,053   22,422   29,567   105,091 

Other commercial commitments
(RMB in millions)
 2017   2018-2019   2020-2021  Thereafter  Total 
                     
Long – term gas purchase contract(4)
  10,204   20,408   20,424   64,554   115,590 
Other commitments(3)
  33,717   -   -   -   33,717 
   43,921   20,408   20,424   64,554   149,307 

Notes:
(1)See Note 2325 to the Financial Statements, "Long-term Loans".Loans."
(2)See Note 2426 to the Financial Statements, "Long-term Bonds".Bonds."
(3)See Note 3840 and 4243 to the Financial Statements, "Commitments" and "Subsequent Events".Events."
(4)The numbers shown in the table above were calculated based on the minimum purchases stipulated in the long-term gas contracts disclosed in Note 3840 to the Financial Statements.

In addition, in accordance with a 30-year operating lease agreement signed by Huaneng Dezhou Power Plant (“("Dezhou Power Plant”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

109
revision once every three years. The increment for each rental revision is restricted to no more than 30% of the previous annual rental amount. For the years ended December 31, 2016, 20152018, 2017 and 2014,2016, the annual rentals waswere approximately RMB34 million.

The Company and its subsidiaries have various defined contribution plans in accordance with the local conditions and practices in the provinces in which they operate. The Company and its subsidiaries pay fixed contributions into separate entities (funds) and will have no further payment obligations if the funds do not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.

Disclosures of the pension plans, including the contribution amounts, are included in Note 3638 to the Financial Statements.
K.           
K.Impairment sensitivity analysis
Goodwill impairment
The Company and its subsidiaries conducts impairment test on each individually recognized goodwill at the end of eachevery year. In 2016,2018, the management recognized no goodwill impairment of approximately RMB409 million based on the impairment assessment.
For goodwill allocated to CGUs in the PRC, changes of assumptions in tariff and fuel price could have affected the results of goodwill impairment assessment. As atof 31 December 31, 2016,2018, if tariff had decreased by 1% or 5% from management'smanagement’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against goodwill by approximately RMB176RMB900 million and RMB1,043RMB3,915 million, respectively. If fuel price had increased by 1% or 5% from the management'smanagement’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to further recognize impairment against goodwill by approximately RMB37RMB421 million and RMB899RMB3,185 million, respectively.
Impairment of other non-current assets
The Company and its subsidiaries will test its property, plant and equipment, land use rights and mining rights suffered any impairment whenever anyan impairment indication exists.
In 2016,2018, impairment losses for certain property, plant and equipment and land usemining rights of approximately RMB1,064RMB990 million and RMB52RMB135 million have been recognized, respectively. Factors leading to the impairment include lower than expected operating results of operating projects primarily included lower utilization hourssubsidiaries in 2018 due to oversupply and tariff of two coal-fired power plantsfierce competition within the electricity market. In addition, as a result of over supplythe low demand of electricitycoal-fired power in two provinces, as well as low utilization hourslocal market and site selection issues, management estimated the possibility of further development of a hydropower plant ascoal-fired power project and a resultwind power project was remote. Therefore the project under construction of low leveltwo subsidiaries with a carrying value of water inflow.RMB14 million and 8 million were fully impaired in 2018.
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. As at 31 December 31, 2016,2018, if tariff had decreased by 1% or 5% from management'smanagement’s estimates with other variables constant with the expectation, the Company and its subsidiaries would have to further recogniserecognize impairment against property, plant and equipment, and land use rights and mining rights by approximately RMB92RMB460 million and RMB779RMB5,599 million, respectively; if fuel price had increased by 1% or 5% from the management'smanagement’s estimates with other variables constant with the expectations, the impairment against property, plant
105
and equipment, land use rights and mining rights of the Company and its subsidiaries would decreaseincrease by approximately RMB8RMB46 million and RMB38RMB1,598 million, respectively.
L.            Prospects for 2017
L.Prospects for 2019

In 2017,2019, the Company will further establish a firm sense of leadership, competitive awareness,thoroughly implement development strategies and proactively seize market awarenessopportunities. Based on safety and risk awareness. The Company will adhere to an issue-oriented approach, strengthen innovation drive, undertake responsibility and missions, enhance corporate vitality, and place greater emphasesenvironmental protection, focusing on quality and efficiency, and driven by reform and innovation, it will further promote quality improvement, efficiency enhancement, transformation and upgrading, standardizingupgrading. The Company will focus on its objective of building an internationally leading power generation listed

110
company and continuously improve its business performance, so as to create more values for the nation, the society and its shareholders.

In respect of power generation, the Company will endeavor to implement the state’s plans on safe production and strengthen the accountability of all employees. It will strengthen grading-based risk management and risk prevention work, constantlycontrol, hazard investigation and management, as well as anti-violation governance, so as to prevent personal injury and death. It will strengthen the maintenance of generating units and quality evaluation and assessment to maintain a sound overall excellence rate in the overhaul. It will concretely procure “no unplanned outage” of its power plants and unceasingly enhance the safe and stable operation of generating units. The Company will persistently improve the profitability, competitive strengthstandard of smart power generation and sustainable development capability of the Company.clean power generation as well as diligently promote energy conservation reform and optimize its operation so as to reinforce its leading position in energy saving and environmental protection areas.
In respect of the power market,marketing, the Company will continuetake a market-oriented approach and strengthen research on policies and trading mechanism to deepengrasp market opportunities. It will create differentiated competitive advantages, optimize regional power generation structure, and strive to expand the scale of transactions. It will actively explore the spot market, accelerate the establishment of the decision-making process for bidding and quoting, the risk control mechanism and the information support system, and push forward the construction of integrated operation centres in pilot areas. It will centrally plan and coordinate cross-provincial and cross- regional transactions and strive to increase transaction prices. It will aim at delivering a domestic power generation of approximately 440.0 billion kWh and average utilization of around 4,200 hours for the year. In areas with low heat prices, it will make active efforts to increase the heat prices. It will further increase the recovery rate of electricity and heat fee.
In respect of fuel, the Company will reinforce policy research regardingand market analysis, and enhance the insights and stability in fuel procurement. The Company will establish a firm and effective fuel supply chain and demand situation,dynamically optimize long- term contract resources based on the structural outlay and take active partregion characteristics of resources. Leveraging on its advantages in market competition. Wescale procurement, the Company will ensure market share is higher than capacity share, andstrengthen strategic cooperation with large-scale coal enterprises to strive for a leading positionmore reasonable pricing mechanism. The Company will further improve the fuel management system, strengthen the management of coal yards, and continuously improve the mixing capability to strictly control fuel costs.
In respect of capital, the Company will closely monitor the changes in the region in termsdomestic capital market and give full play to its management advantages. In addition to ensuring the efficiency of utilization hour benchmark in an effortthe main financing channel (i.e. credit financing), the Company will seize the cost advantages presented by the proactive fiscal policy and prudent monetary policy to achieve a power generationinnovate new financing means and to expand the scale and channels of 392.0 billion kWh and 3,800 utilization hours fordirect financing, so to ensure the year.security of funds while striving to reduce capital cost.
Regarding the fuel market, theThe Company will adhere to the market-orientednew development philosophy, fully reinforce the management of market value and enhance its brand value. The Company will steadily introduce reforms and innovations to strengthen the benchmarking management system, further refine the refined management and thus creating a cost advantage. We will continue to optimize fuel procurement chain and production and operation chain.
In respect of the capital market, thedynamics for innovation in business development. The Company will make active response to changes insafeguard the financial market, expand financing channels, strengthen internal control over capitalsound implementation of its various business plans by its solid and improve capital usage efficiency, continuing to maintain the Company's leading position in the industry in terms of financing cost.efficient basic management standards.
In respect of innovative development, the Company will further perform innovation driven development strategy, strengthen production management innovation and improve intelligent production, enhance management efficiency and effectiveness.
ITEM 6   Directors, Senior Management and Employees
ITEM 6DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A.           
A.Directors, members of the supervisory committee and senior management
Directors
The table below sets forth certain information concerning our directors as of March 31, 2017.2019. The current term for all of our directors is three years commencing from the signing of the director service contracts.
Name Age Position with us
Cao PeixiShu Yinbiao 6160 Chairman of the Board of Directors
Guo JunmingHuang Jian 5156 Vice Chairman of the Board of DirectorsDirector
Liu Guoyue
Wang Yongxiang
 53 Executive Director President


111

Fan Xiaxia
Mi Dabin
 54Executive Director, Vice President
Li Shiqi60Director
Huang Jian54Director
Mi Dabin4850 Director
Guo Hongbo 4850 Director
Zhu YoushengCheng Heng 5155 Director
Li Song
Lin Chong
 5955 Director
Li Zhensheng
Yue Heng
 7244 Independent Director
Yue Heng
Xu Mengzhou
 4168 Independent Director
Geng Jianxin
Liu Jizhen
67Independent Director
Xu Haifeng63Independent Director
Zhang Xianzhi 61 Independent Director
Xia Qing59Independent Director
Xu Mengzhou66Independent Director

CAO Peixi

SHU Yinbiao, aged 61,60, is the Chairman and Secretary of the Party Committee of the Company, the Chairman and the PresidentSecretary of the Leading Party Members’ Group of Huaneng Group. He was the Chairman of HIPDC and Huaneng RenewablesState Grid Corporation Limited.of China. He graduated from ShandongWuhan University, majoring in electrical engineering. He is a postgraduate with master’s degree in engineering awarded by the Party School of the Central Committee, and is a researcher-grade senior engineer.


GUO Junming, aged 51, is the Vice Chairman of the Company, the Chief Accountant of Huaneng Group and a Director of HIPDC. He was the Chief Accountant of Huaneng Group and the Chairman of the Supervisory Committee of the Company. He graduated from Shanxi Finance and Economic Institute, majoring in business finance and accounting, and is a university graduate. He is a senior accountant.


106

LIU Guoyue, aged 53, is a Director and the President of the Company, the Vice President of Huaneng Group, an Executive Director of Huaneng International Power Fuel Limited Liability Company, the Chairman of Shanghai Times Shipping Limited Company, a Director of SinoSing Power Pte. Ltd., and the chairman of Tuas Power Ltd., Tuas Power Supply Pte Ltd. and Tuas Power Utilities Pte Ltd.. He graduated from North China Electric Power University, majoring in thermal engineering.System and Its Automation. He holds a Doctor’sdoctor degree in engineering. He is a professor-grade senior engineer.

FAN Xiaxia

HUANG Jian, aged 54, is a Director and the Vice President of the Company, and also Vice President of Huaneng Group. He graduated from the Economic Management School of Tsinghua University with an EMBA degree. He is a senior engineer.


LI Shiqi, aged 60,56, is a Director of the Company, a dedicated Director and a Director of HIPDC. He was the President of HIPDC, the Director of the Business Development Department of Huaneng Group, and the Chairman of Huaneng Carbon Assets Management Company Limited. Mr. Li graduated from Renmin University of China, majoring in finance, and is a college graduate. He is a senior accountant.

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

MI Dabin

WANG Yongxiang, aged 48,53, is a Director of the Company, the Chairman and Party Secretary of HIPDC, the Chief of Power Development Business Division and the Shale Gas Exploitation and Utilization Office of Huaneng Group, and the president of GreenGen Co., Ltd. He was the Chairman of Huaneng Lancangjiang Hydropower Co., Inc. and the President of Yunnan branch of Huaneng Group. He graduated from Tsinghua University where he majored in hydraulic engineering and holds a postgraduate degree of master in engineering. He is a professor-grade senior engineer.

MI Dabin, aged 50, is a Director of the Company, the Vice President and a Standing Committee Member of the Party Committee of Hebei Construction & Investment Group Co., Ltd., the Chairman (acting on behalf of the General Manager) of Hebei Construction& Energy Investment Co., Ltd. and, the Chairman of Hebei Xingtai Power Generation Limited, (河北興泰發電有限責任公司*)the Chairman of Huihai Financing and Leasing Co., Ltd., and the Chairman of CIC Hebei Heat Cogeneration Co., Ltd.. He was the Chief Engineer, Vice President and President of Qinhuangdao Power Generation Co., Ltd., the President of Qinhuangdao Thermal Power Generation Co., Ltd., an assistant to the President and the Head of Production and Operation Department of Hebei Construction & Investment Group Co., Ltd., the President of Qinhuangdao Power Generation Co., Ltd. and Qinhuangdao Thermal Power Generation Co., Ltd..Ltd. He graduated from North China Electric Power University, majoring in power engineering, and holds a master’s degree. He is a senior engineer.


GUO Hongbo, aged 48,50, is a Director of the Company, the Chairman and the Secretary of the Party Committee of Liaoning Energy Investment (Group) Limited Liability Company, the director of Shenyang JinshanShenyangJinshan Energy Limited, (沈陽金山能源股份有限公司*), and the vice chairman of Liaoning Haitong New Energy Low-Carbon Industrial Equity Investment Fund Limited (遼寧海通新能源低碳產業股權投資基金有限公司*).Limited. He was the assistant to the president, vice president, executive vice president, a director, the president and vice chairman of Liaoning Energy Investment (Group) Limited Liability Company. Mr. Guo graduated from Jilin University with a master’s degree in administrative management, and holds an MBA degree from Macau University of Science and Technology.degree. He is a professorgradeprofessor-grade senior engineer.


ZHU Yousheng

CHENG Heng, aged 51, is a Director of the Company and Vice President of Jiangsu Province Investment Management Limited Liability Company. He was the project manager of Jiangsu Province Investment Management Limited Liability Company, Vice President of Xutang Power Limited Liability Company, the Vice President and the President of the Production Safety Department and President of Jiangsu Province Investment Management Limited Liability Company and the vice general manager of Jiangsu Province Investment Management Limited (江蘇省投資管理有限責任公司*). He graduated from Nanjing University of Aeronautics and Astronautics specializing in power engineering, and is a master degree postgraduate, researcher-grade senior engineer.


LI Song, aged 59,55, is a Director of the Company, the Vice President (group department president level) of the Energy Department of Jiangsu Guoxin Investment Group Limited, the Vice Chairman of Jiangsu Changshu Electric Power Generating Company Limited, the Vice Chairman of Jiangsu Ligang Electric Power Co., Ltd., the Vice Chairman of Jiangsu Ligang Power Generating Co., Ltd., and the Vice Chairman of Yangcheng International Electric Power Co., Ltd.. He previously served as the deputy manager of the Planning Department of Jiangsu International Trust and Investment Corporation, Vice President of Changshu Power Generation Co., Ltd., President of Energy Investment Division 2 of Jiangsu Provincial Investment Management Co., Ltd., and the Vice President of Jiangsu Provincial Investment Management Co., Ltd. He is a university graduate with College education and an economist.


112

LIN Chong, aged 55, is a Director of the Company, the Vice President and a Member of CPC Committee of Fujian Investment and& Development Group Co., Ltd., the Chairman of Zhongmin Offshore Wind Power Co., Ltd., the Vice Chairman of CNOOC Fujian Natural GasMindong Electric Power Limited Company, the Vice Chairman of Fujian Sanming Nuclear Power Co., Ltd., the Vice Chairman of CNOOCChinalco Southeast Copper Co., Ltd., the director of Fujian GasMotor Industry Group Co., Ltd., the director of Fujian Fuqing Nuclear Power Generation Co., Ltd. and CNOOC Fujian Zhangzhou Natural Gas Company Limited and a Vice Presidentthe director of King Long Motor Group. Mr. Lin has formerly served as the assistant to the general manager of Fujian Zhonghai Emergency MaintenanceInvestment & Development Group Co., Ltd. (福建中海應急搶維修有限責任公司*) She, the Director of the Preparatory Office for Fuzhou Baiyun Pumped Storage Hydropower Station, and the Chairman of Fujian Zhongmin Energy Investment Co., Ltd. He graduated from Xiamen Jimei FinanceChongqing University where he majored in electric power system and Commerce College majoring in finance, Open College of Party School of the Central Committee majoring in economic management,its automation and holds a bachelor’smaster’s degree from Party School of the Central committee. Shescience in engineering (postgraduate diploma). Mr. Lin is an accountant.

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


YUE Heng, aged 41,44, is an Independent Director of the Company, an Associate Professor of Singapore Management University. He is the winner of the first session of China National Funds for Distinguished Young Scientists, the winner of New Century Excellent Talents of the Ministry of Education 2012, the leading accounting talent of Ministry of Finance, the Councilor of Accounting Society of China and the Deputy Editor-in-Chief of CJAS magazine of Accounting Society of China. He was the Associate Professor, Professor, Dean and Doctorate Mentor of Accounting Department of Guanghua Management School of Peking University. He graduated from Tulane University in the United States with a doctor’s degree in accounting.

GENG JianxinXU Mengzhou, aged 61,68, is an Independent Director of the Company, a Professor and Doctorate Mentor of Renmin University of China, an Independent Director of Shenzhen Qixin Construction Co., Ltd. (深圳奇信建設股份有限公司*) and Triangle Tyre Co., Ltd. (三角輪胎股份有限公司*). He was an assistant accountant of the Geophysical Exploration Company of the Ministry of Metallurgical Industry and associate professor of Hebei University of Economics and Business. He graduated from the Renmin University of China specializing in accounting and holds a doctor’s degree.

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

XU Mengzhou, aged 66, a professorRUC Law School of Renmin University of China (RUC), an Independent Director of Shandong Hualu-Hengsheng Chemical Co., Ltd. (山東華魯恒升化工股份有限公司) and, ENN Ecological Holdings Co. Ltd., (新奧生態控股股份有限公司)and an Independent Director of iHandy Group (non-listed company). He served as a professor of RUC Law School and School of International Studies of Renmin University of China. He graduated from the RUC, with a doctor’s degree in Economic Laws.
LIU Jizhen, aged 67, is an Independent Director of the Company, a Director of the National Key Laboratory of New Energy Power System of North China Electric Power University, a chief scientist of the 973 Program, the Vice President of the China Electricity Council, the Vice President of the Chinese Society for Electrical Engineering, the Vice President of the Chinese Society of Power Engineering, a fellow of the Institution of Engineering and Technology (FIET) and an independent director of Datang International Power Generation Co., Ltd. Mr. Liu was formerly the President of Wuhan University of Hydraulic and Electrical Engineering and the President of North China Electric Power University. He is a professor, a doctoral supervisor and an academician of the Chinese Academy of Engineering.
XU Haifeng, aged 63, is an Independent Director of the Company. He successively served as the Chairman and President of China Railway Express Co., Ltd., the director and Vice President of Beijing-Shanghai High Speed Railway Co., Ltd., the Managing Commander-in-Chief of the General Headquarters for the Construction of Beijing-Shanghai High Speed Railway of the Ministry of Railways, and the Vice Chairman and President of Beijing-Shanghai High Speed Railway Co., Ltd. He graduated from Beijing Jiaotong University where he majored in transportation organization and automation. He has an EMBA degree from the Guanghua School of Management of Peking University.
ZHANG Xianzhi, aged 61, is an Independent Director of the Company, a professor and a doctoral supervisor of Dongbei University of Finance and Economics. He is serving concurrently as independent director at CGN Nuclear Technology Development Co., Ltd., Dalian Zhiyun Automation Co., Ltd., Yingkou Port Liability Co., Ltd. and Dalian Tianbao Green Foods Co., Ltd.. Mr. Zhang was formerly an accountant of Dalian City Transportation Bureau, a researcher of Dalian Economic Commission, professor and vice dean of the accounting school of Dongbei University of Finance and Economics, and director of Sino-German Management and Control Research Centre, etc. He graduated from Dongbei University of Finance and Economics with a major in industrial economics and holds a doctorate degree.

113
Supervisors
The table below sets forth certain information concerning our supervisors as of March 31, 2017.2019. The current term for all of our supervisors is three years, which will expire in 2017.2020.
Name
 
Age
 
Position with us
Ye Xiangdong 4951 Chairman of the Board of Supervisors
Mu Xuan
 4143 Vice Chairman of the Board of Supervisors
Zhang Mengjiao 5354 Supervisor
Gu Jianguo 5052 Supervisor
Zhang Xiaojun 5052 Supervisor
Zhu DaqingZhang Xiancheng 4455 Supervisor

YE Xiangdong, aged 49,51, is the Chairman of the Supervisory Committee of the Company and the Vice President and a Member of the Leading Party Members' Group of Huaneng Group, a Director of HIPDC, the Executive Director of Huaneng Coal Mining Corporation Company (華能煤業有限公司) and the Chairman of Xi’an Thermal Power Research Institute Co., Ltd.Group. He was the Executive Director and President of Huaneng HulunbeierHulun Buir Energy Development Company Ltd. and the Chief Engineer of Huaneng Group. He graduated from Chongqing University, majoring in thermal energy, and holds a master’s degree in Engineering. He is a senior engineer.


MU Xuan, aged 41,43, is the Vice Chairman of the Supervisory Committee of the Company, and the Vice President and a Member of CPC Committee of Dalian Construction Investment Group Co., Ltd., the Director and President of Dalian LNG Pipeline Co., Ltd. He was the director,assistant to the President of Dalian Natural Gas High-pressure Pipelines Limited (大連天然氣高壓管道有限公司*)Construction Investment Co., Ltd. and the supervisor of Liaoning Hongyan River Nuclear Limited (遼寧紅沿河核電有限公司*) and, the Assistantassistant to the President of Dalian Construction Investment Group Co., Ltd. He graduated from Dongbei University of Finance and Economics, majoring in Technical Economy and Management,Management. He is a master degree postgraduate and holds a master’s degree.


108

registered accountant.

ZHANG Mengjiao, aged 53,54, is a Supervisor of the Company and the Manager of the Finance DepartmentDeputy Chief Accountant of HIPDC. She was the Deputy Manager of the Finance Department of the Company.Company and the Manager of the Finance Department of HIPDC. She graduated from Xiamen University, majoring in accounting. She is a master’s degree postgraduate in economics and is a senior accountant.


GU Jianguo, aged 50,52, is a Supervisor of the Company, the Chairman of Nantong Investment & Management Limited Company, and the Vice President of Nantong State owned Assets Investment HoldingsCity Construction Group Co., Ltd. Mr. GuLtd.. He was the Chief of Nantong Investment Management Centre, and a Director and the President of Nantong Investment & Management Limited Company. He graduated from Shanghai Jiao TongNanjing University of Aeronautics and Astronautics with a master’sbachelor’s degree. He is an economist.


He holds a Master of Business Administration from Antai College of Economics and Management (ACEM) at Shanghai Jiao Tong University.

ZHANG Xiaojun, aged 50,52, is a Supervisor and Manager of the Vice Chairman of Labour UnionDiscipline Inspection, Supervision and Audit Department of the Company. She was Deputy Manager of the Administration Department and the Vice Chairman of Labour Union of the Company. She graduated from the Central Party School of the Communist Party of China, majoring in economic management, and holds a bachelor’s degree. She is an accountant.


ZHU Daqing

ZHANG Xiancheng, aged 44,54, is a Supervisor and the Manager of AuditingParty Building Work Department of the Company. He was Deputythe Manager of Financethe Political Work Department of the Company. He graduated from the CentralNortheast Agriculture University, of Financemajoring in business administration, and Economics, and holds a master’s degree in finance & accounting, and a bachelor’s degree in management.economics. He is a senior accountant.economist.


114

Other Executive Officers

GU BiquanZHAO Keyu, aged 59,52, is the Vice President and General Counsel of the Company. He was the Vice President andDeputy Party Secretary to the Board of the Company. He graduated from Beijing Radio and Television University, majoring in Electronics, and is a college graduate. He is an engineer.

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

ZHAO Ping, aged 54, is the Vice President of the Company. He was the Chief Engineerof the Planning and Development Department, Chief of Office, and Director and Secretary of the Party Office of Huaneng Group. He graduated from Wuhan University, majoring in software engineering, and is postgraduate with a master’s degree in engineering. He is a senior political work specialist.
ZHAO Ping, aged 56, is the Vice President and the Deputy Party Secretary of the Company. He graduated from Tsinghua University, majoring in thermal engineering, is a postgraduate with a master’s degree in science. He is a researcher-gradeprofessor-grade senior engineer. He enjoyed special government allowance of the State Council.

DU DamingWU Senrong, aged 50, was57, is currently the Vice President and the Secretary to the Boarda Member of the Company during the Reporting Period. He was the Vice President and General Counsel of the Company. He graduated from North China Electric Power University, majoring in electric system and automation, is a postgraduate with a master’s degree in science. He is a senior engineer.

WU Senrong, aged 55, is currently the Head of the Discipline Inspection GroupParty Committee of the Company. He was a Member of the HeadParty Committee and the Secretary of the Discipline Inspection Group and Vice Presidentcommission of the Company. He graduated from the Economic Management School of Tsinghua University with an EMBA degree. He is a researcher-gradeprofessor-grade senior engineer.

SONG Zhiyi, aged 56,58, is the Vice President and a Member of Party  Committee of the Company. He was the Head of Construction Department of Huaneng Group. He graduated from the Guanghua Management Institute of Peking University, with an MBA degree. He is a senior engineer.

LI Jianmin, aged 55,57, is thea Member of Party Committee and Vice President of the Company. He was the Deputy Chief Economist of the Company. He graduated from North China Electricity College, majoring in power plant and electricity system, with a bachelor’s degree in science. He is a researcher gradeprofessor-grade senior engineer.

109

LIU Ranxing, aged 54,56, is the Vice President, a Member of Party Committee and the Secretary of the Discipline Inspection commission of the Company. He was the President of Huaneng Energy & Communications Holdings Co., Ltd. He graduated from Harbin Institute of Technology, majoring in management engineering, with a master’s degree in science. He is a researcher-gradeprofessor-grade senior engineer.

HUANG Lixin, aged 50,52, is currently the Chief accountant and a Member of Party Committee of the Company. He was the Manager of the Finance Department of the Company and the HeadDirector of the Finance Department of Huaneng Group. He graduated from the Economic Management School of Tsinghua University with an EMBA degree. He is a senior accountant.

HE YongHUANG Chaoquan, aged 58,53, is currently the Chief EngineerSecretary to the Board and Manager of the Administration Department of the Company. He was the Deputy Chief EngineerManager of the Corporate Management Department of the Company. He graduated from WuhanHarbin University majoring in corporate management, isof Science and Technology with a postgraduate with a master’s degree in management.Management Engineering. He is a researcher-grade senior engineer.economist.
B.            Compensation for Directors, Supervisors and Executive Officers
B.Compensation for Directors, Supervisors and Executive Officers
The table below sets forth the compensation on individual basis for the directors, supervisors and other executive officers for the year ended December 31, 2016:2018:

115
Name Position with the Company 
Pre-tax Remuneration Paid by the
Company in 20162018(1)
     (RMB in thousand)
Directors
    
Mr. Cao PeixiHuang Jian Director-
Wang YongxiangDirector-
Mi DabinDirector-
Guo HongboDirector-
Cheng HengDirector-
Lin ChongDirector-
Yue HengIndependent Director74
Xu MengzhouIndependent Director74
Liu JizhenIndependent Director74
Xu HaifengIndependent Director74
Zhang XianzhiIndependent Director74
Cao Peixi(2)
Former Chairman of the Board of Directors -
Mr. Guo JunmingVice Chairman of the Board of Directors -
Mr.
Liu Guoyue(3)
 Former Executive Director and President -
Mr. Fan XiaxiaExecutive Director and Vice President845
Mr. Li ShiqiDirector -
Mr. Huang JianFan Xiaxia(4)
 Former Director-
Mr. Mi DabinDirector48
Mr. Guo HongboDirector-
Mr. Zhu YoushengDirector48
Ms. Li SongDirector48
Mr. Zhang Shouwe (2)
Director37
Mr. Li ZhenshengIndependent Director74
Mr. Yue HengIndependent Director74
Mr. Geng JianxinIndependent Director74
Mr. Xia QingIndependent Director74
Mr. Xu Mengzhou (3)
Independent Director37

  
Sub-total:1,357-
 
Supervisors
Mr. Ye XiangdongChairman of the Board of Supervisors-
Mr. Mu XuanVice Chairman of the Board of Supervisors48
Ms. Zhang MengjiaoSupervisor-
Mr. Gu JianguoSupervisor48
Ms. Zhang Xiaojun (5)
Supervisor495
Mr. Zhu Daqing (5)
Supervisor491
Mr. Wang Zhaobin (4)
Supervisor52
Ms. Zhang Ling (4)
Supervisor69
     
Sub-total   1,202370

Supervisors
Ye XiangdongChairman of the Board of Supervisors-
Mu XuanVice Chairman of the Board of Supervisors-
Zhang MengjiaoSupervisor-
Gu JianguoSupervisor-
Zhang XiaojunSupervisor760
Zhang Xiancheng(5)
Supervisor
145
Zhu DaqingFormer Supervisor379

Sub-total1,284
Other Executive officers     
Other Executive officersZhao Keyu(6)
President  409
Mr. Gu BiquanVice President and General Counsel789
Ms. Zhou HuiVice President789
Mr. Zhao Ping Vice President 789856
Mr. Du DamingVice President and Secretary to the Board of Directors789
Mr. Wu Senrong Head of Discipline Inspection Group 789856
Mr. Song Zhiyi Vice President 789856
Mr. Li Jianmin Vice President 789856
Mr. Liu Ranxing(1)
 Vice President 779856
Mr. Huang Lixin Chief Accountant 706855
Mr. He YongHuang Chaoquan Secretary to the Board of Directors757
Zhou Hui(7)
Former Vice President198
He Yong(8)
Former Chief  Engineer 789264
     
Sub-total:Sub-total   77966,763
Total   13,053
Total
9,027

110

_____________________________
Notes:
(1)   The remuneration paid by the Company in 2016 includes fees, basic salaries, performance salaries and pension. Please see Note 37 to the Item 18 Financial Statements, “Directors’, supervisors’ and senior management’s emoluments”.
(1)The remuneration paid by the Company in 2018 includes fees, basic salaries, performance salaries and pension. Please see Note 38 to the Item 18 Financial Statements, "Directors', supervisors' and senior management's emoluments."
(2)Mr. Cao Peixi resigned on January 30, 2019.
(3)Mr. Liu Guoyue resigned on May 15, 2018.
(4)Mr. Fan Xiaxia resigned on February 28, 2018.

(2)    Mr. Zhang Shouwen resigned on June 23, 2016.

116
(3)    Mr. Xu Mengzhou was appointed on June 23, 2016.

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

(5)Mr. Zhang Xiancheng was elected on October 30, 2018.
(5)    Ms. Zhang Xiaojun and Mr. Zhu Daqing were appointed on April 14, 2016.
(6)Mr. Zhao Keyu was appointed as the President on July 31, 2018.
(7)Ms. Zhou Hui resigned in March 2018.
(8)
Mr. He Yong resigned in April 2018.
The total remuneration paid to our directors, supervisors and executive officers is comprised of basic salaries, performance salaries and pension. Of these, performance salaries account for approximately 50% of the total remuneration. In addition, directors and supervisors who are also officers or employees of the Company receive certain other benefits, such as subsidized or free health care services, housing and transportation, which are customarily provided by large enterprises in the PRC to their employees. Each of the Company's independent directors receives annual after-tax cash compensation of RMB60,000. We do not have any service contract with any director that provides for benefits upon termination of employment. In 2016, no option was granted to the directorsThe Company does not grant options or the supervisors.stock-based incentive awards to its directors, supervisors and executive officers.
C.           
C.Board practice
We, in accordance with the resolutions passed at a shareholders' general meeting, have set up four board committees, namely, the Audit Committee, the Strategy Committee, the Nomination Committee, and the Remuneration and Appraisal Committee, and formulated the working regulations for each committeescommittee in accordance with relevant rules and regulations. All committees operate in accordance with the working rules and utilize their members' specific backgrounds, experience and industry expertise to provide advice to the board, so as to enhance our operation efficiency and to make the decision-making process better informed.
The main duties of the Audit Committee are to assist our board in performing its statutory and fiduciary duties of supervising our accounting, financial reporting, internal control and compliance, including but not limited to, assisting our board in ensuring (i) the authenticity of our financial statements; (ii) our compliance with the applicable laws and regulations; (iii) the qualification and independence of our independent auditors; (iv) the performances of our independent auditors and internal auditing department and (v) the control and management of the related-party transactions of the Company.
The main duties of the Strategy Committee are to advise on, and conduct research in relation to, our long-term development strategies and decisions regarding significant investments.
The main duties of the Nomination Committee are to conduct research and provide advice in relation to the requirements for selection of directors and managers and the relevant procedures based on the actual need of our operation, to search for qualified candidates for the positions of director and manager, to examine the candidates for the positions of director and manager and to advise matters in relation thereto.
The main duties of the Remuneration and Appraisal Committee are to conduct research on the appraisal guidelines for directors and managers, to carry out performance appraisals and provide advice accordingly, and to conduct research on the remuneration policies and proposals regarding the directors and senior management.
The members of Audit Committee are Mr. Yue Heng (Chairman), Mr. Li Zhensheng,Xu Mengzhou, Mr. Geng Jianxin,Liu Jizhen, Mr. Xia QingXu Haifeng and Mr. Xu Mengzhou.
111
Zhang Xianzhi.
The members of Strategy Committee are Mr. Liu Guoyue (Chairman)Shu Yinbiao (Ad hoc Chairman), Mr. Li Shiqi, Mr. Huang Jian, Mr. Fan Xiaxia,Wang Yongxiang, Mr. Li ZhenshengLiu Jizhen and Mr. Xia Qing.Xu Haifeng.
The members of Nomination Committee are Mr. Li ZhenshengLiu Jizhen (Chairman), Mr. Fan Xiaxia, Mr. Mi Dabin, Ms. Li Song,Mr. Lin Chong, Mr. Yue Heng, Mr. Geng JianxinXu Mengzhou and Mr. Xu Mengzhou.Zhang Xianzhi.
The members of Remuneration and Appraisal Committee are Mr. Geng JianxinZhang Xiangzhi (Chairman), Mr. Liu Guoyue, Mr. Guo Hongbo, Mr. Zhu Yousheng, Mr. Li Zhensheng,Cheng Heng, Mr. Yue Heng, Mr. Liu Jizhen and Mr. Xia Qing.Xu Haifeng.
D.           

117
D.Employees
As of December 31, 2016,2018, we have 42,210had 57,960 employees. Of these, 295 are124 were headquarters management staff, 11,228 are power plant personnel directly involved in the18,139 were management and operationtechnical staff of the power plants,our subsidiaries, and the remainder are maintenance personnel,was workers, ancillary service workerspersonnel and others. Over 75%Approximately 77% of our work force graduated from university or technical college. As of December 31, 20142016 and 2015,2017, we had approximately 37,73742,210 and 42,03953,962 employees, respectively.
We conduct continuing education programs for our employees at our head office and at each power plant. We provide training in foreign language, computer, accountingoperating and other areas to our managerial professionals and technicians in their relevant fields. Employees are trained in accordance with the different requirements for professional and managerial positions.
Our labor force is employed through individual labor contracts. Currently, all employees are employed under labor contracts, which specify the employee's position, responsibilities, remuneration and grounds for termination. Short-term labor contracts have fixed terms of typically one to five years, at the end of which they may be renewed by agreement of both the Company and the employee.
The contract system imposes discipline, provides incentives to adopt better work methods, and provides us with a greater degree of management control over our work force. We believe that, by linking remuneration to productivity, the contract system has also improved employee morale.
Each of our power plants has a trade union and the employees of our headquarters are also members of a trade union. These trade unions protect employees' rights, aim to fulfill our economic objectives, encourage employees to participate in management decisions and mediate disputes between us and union members. We have not been subject to any strikes or other labor disturbances interfering with our operations, and we believe that our relationships with our employees are good.
Total remuneration of our employees includes salaries, bonuses and allowances. The remuneration level of each employee is linked to the performance of our company as well as the individual employee himself/herself. The employees also receive certain benefits in the form of education and health services subsidized by the Company and other miscellaneous subsidies.
In compliance with the relevant regulations, we and our employees participate in the local government pension plan under which all the employees are entitled to pension payments upon retirement. See Note 3638 to the Financial Statements.
The Company also participates in the social insurance program administered by the social security institution, under which all employees are entitled to certain social insurance benefits, subject to adjustments in accordance with relevant PRC regulations. The Company is in compliance with all social insurance regulations and has no overdue obligations for any social insurance contribution.
E.            
E.Share ownership
None of our directors, supervisors or senior management owns any of our shares.
112
ITEM 7    Major Shareholders and Related Party Transactions
ITEM 7MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A.           
A.Major shareholders
Our outstanding ordinary shares consist of A Shares and H Shares, each with a par value of RMB1.00 per share. The following table sets forth certain information regarding our major shareholders as of March 31, 2017.2019.
Shareholder 
Number of
shares
  
Approximate
percentage
in the total
issued domestic
share capital %
  
Approximate
percentage
in the total
issued share
capital %
 
Huaneng International Power Development Corporation  5,066,662,118   48.25   33.33 
China Huaneng Group(1)
  1,629,264,402   15.52   10.72 
Hebei Provincial Construction Investment Company  549,169,071   5.23   3.61 
China Hua Neng Hong Kong Company Limited  472,000,000   
-(2)
   3.11 
Shareholder Number of shares  Approximate percentage in the total issued domestic share capital %  Approximate percentage in the total issued share capital % 
Huaneng International Power Development Corporation  5,066,662,118   46.07   32.28 
China Huaneng Group Co. Ltd.(1)  1,629,264,402   14.81   10.38 


118

Shareholder Number of shares  Approximate percentage in the total issued domestic share capital %  Approximate percentage in the total issued share capital % 
China Hua Neng Hong Kong Company Limited  472,000,000
(2) 
  10.04(2)
  3.01 
_____________________________
Notes:
(1)Of the 1,629,264,402 shares, 74,139,853 domestic shares through its controlling subsidiary, Huaneng Finance Corporation Limited.
(2)472,000,000 shares are H sharesShares and represent 10.04% of the total issued H sharesShares of the Company and 3.11%3.01% of the total issued share capital of the Company.
In 2006, all of our shareholders of non-tradable domestic shares except HIPDC transferred a total of approximately 1.1 billion shares to Huaneng Group, representing 9.24% of our total issued shares. Among others, HPCIC transferred approximately 301 million shares to Huaneng Group, and decreased its shareholdings in the Company to 5.00%.
On April 19, 2006, we carried out our reform plan to convert all non-tradable domestic shares into tradable domestic shares. According to the plan, Huaneng Group and HIPDC transferred a total of 150 million A Shares to our shareholders. As a result, the direct shareholdings of Huaneng Group and HIPDC decreased to 8.75% and 42.03%, respectively.
In June and July of 2008, through its wholly owned subsidiary, China Hua Neng Hong Kong Company Limited, Huaneng Group acquired 20 million H sharesShares from the open market. As a result, the shareholding of Huaneng Group increased to 8.92%.
In 2010, we increased our share capital through non-public issuances of new shares, including A shares and H shares.Shares. With the approval of shareholders and relevant PRC governmental authorities, we were authorized to issue (i) not exceeding 1,500 million new A shares by way of placement to not more than 10 designated investors, including Huaneng Group, which would subscribe for no more than 500 million new A shares, and (ii) no more than 500 million new H Shares to China Hua Neng Hong Kong Company Limited ("Hua Neng HK"). On December 23, 2010, we completed the non-public issuance of 1,500 million new A shares (ordinary shares with a par value of RMB1 per share) to 10 designated investors, including Huaneng Group, at the issuance price of RMB5.57 per share. The shares subscribed by Huaneng Group are subject to a lock-up period of 36 months.
On December 28, 2010, we completed the placement of 500 million H sharesShares (ordinary shares with a par value of RMB1 per share) to Hua Neng HK at the subscription price of HK$4.73 per share.
On November 13, 2014, we completed the placement of 365 million H Shares at the price of HK$8.60 per share.
On November 20, 2015, we completed the placement of 780 million H Shares at the price of HK$7.32 per share.
On October 15, 2018, we completed the non-public issuance of 497,709,919 A Shares at the price of RMB6.55 per share.
Before we were established in 1994, HIPDC and seven other promoters entered into the Shareholders' Agreement dated May 31, 1994 (the "Shareholders' Agreement") which, among other things, grants to HIPDC the right to vote all the shares owned by each of the other promoters so as to enable HIPDC to have majority voting
113
rights in general meetings for so long as we are in existence. In addition, directors designated by HIPDC will have majority representation on our board of directors and each of the other promoters will have one representative designated by it appointed as a member of our board of directors. The Shareholders' Agreement also provides that for so long as we are in existence (i) HIPDC and the other signatories to the Shareholders' Agreement will maintain

119
their combined shareholdings to ensure their collective majority control of the Company, (ii) HIPDC has certain priority rights to purchase the shares held by the other signatories to the Shareholders' Agreement, (iii) if HIPDC does not exercise its priority rights to purchase such shares, each of the signatories to the Shareholders' Agreement other than HIPDC shall have a priority right to purchase such shares on a pro rata basis, and (iv) no shares may be sold or transferred unless their transferees agree to abide by the terms of the Shareholders' Agreement. As a result of the Shareholders' Agreement, HIPDC holds 70.09% of the total voting rights of the outstanding shares and, subject to the Shareholders' Agreement, has the power to control the election of all of our directors and to direct our management and policies.
On May 12, 2006, HIPDC and other promoters (including the shareholders who assumed the rights and obligations of original promoters as a result of share transfer) entered into an amendment to the Shareholders' Agreement, pursuant to which each promoter shall be entitled to exercise its own voting rights at the shareholders' general meeting. Consequently, HIPDC currently holds 35.14% of our total voting rights. Since HIPDC's parent company, Huaneng Group, currently holds, directly or indirectly, 14.87% of our total voting rights, HIPDC is able to exert control over us when acting in concert with Huaneng Group.
Huaneng Group and HIPDC had previously given a non-compete undertaking to us during our initial public offering of A shares in 2001, in order to support our business development, to integrate relevant quality assets and to avoid business competition. In September 2010, we received from Huaneng Group an undertaking on relevant matters for further avoidance of business competition. While Huaneng Group will continue to perform its undertakings previously given, Huaneng Group further undertakes that: (i) it shall treat us as the only platform for ultimate integration of the conventional energy business of Huaneng Group; (ii) with respect to the conventional energy business assets of Huaneng Group located in Shandong Province, Huaneng Group undertakes that it will take approximately 5 years to improve the profitability of such assets and when the terms become appropriate, it will invest those assets into us. We have a right of first refusal to acquire from Huaneng Group the newly developed, acquired or invested projects which are engaged in the conventional energy business of Huaneng Group located in Shandong Province; (iii) with respect to the other non-listed conventional energy business assets of Huaneng Group located in other provincial administrative regions, Huaneng Group undertakes that it will take approximately 5 years, and upon such assets meeting the conditions for listing, it will invest such assets into us in order to support our sustainable and stable development; and (iv) Huaneng Group will continue to perform each of its undertakings to support the development of its subordinated listed companies.
On June 28, 2014, pursuant to Guideline No. 4 for the Supervision of Listed Companies No.4 - Commitments and Their Fulfillment by Listed Companies and Their Actual Controllers, Shareholders, Related Parties and Acquirers issued by CSRC, Huaneng Group strengthened its aforementioned non-competing undertaking in the following ways: (i) it shall treat us as the only platform for integrating the conventional energy business of Huaneng Group; (ii) with respect to the conventional energy business assets of Huaneng Group located in Shandong Province, Huaneng Group undertakes that by the end of 2016, it will inject such assets into the our Company when the profitability of such assets has been improved and meets our internal requirements for the listing of our assets, which include clear delineation of assets and shares ownership between our Company and Huaneng Group, absence of decrease in earnings per share of the Company after the injection and any unlawful events of significance, appreciation of state-owned assets, and certain waivers of shareholder rights by Huaneng Group; (iii) with respect to the other non-listed conventional energy business assets of Huaneng Group in other provincial administrative regions, Huaneng Group undertook that by the end of 2016, upon such assets meeting the our aforementioned internal requirements, the Group will inject such assets into the Company, with a view to supporting the Company's continuous and stable development; and (iv) Huaneng Group will continue to perform each of its undertakings to support the development of its subordinated listed companies. The period of such undertakings is between June 28, 2014 and December 31, 2016.
Huaneng Group has diligently examined and analyzed its performance on the 2014 undertakings, of which items (i) and (iv) are long-term undertaking and are being currently performed.
As of December 31, 2016, all coal-fired generation assets of Huaneng Group located in Shandong region under the scope of undertakings had been injected into the Company, thus performance of the undertaking item (ii) was completed within the term of the undertaking period.

114120
As of December 31, 2016, all other non-listed coal-fired power generation assets of Huaneng Group located in provincial administrative regions other than Shandong which met the conditions had been injected into the Company, thus performance of the undertaking item (iii) was completed.
B.            Huaneng Group continued to perform the undertaking as made previously that it would procure relevant parties such as Huaneng Energy and Transportation (Holding) Company Limited to inject non-listed conventional energy assets located in Shandong to the Company after completion of the asset disposal transaction announced on September 30, 2017 by Shandong Xinneng Taishan Power Generation Co., Ltd. On July 31, 2018, Shandong Company (a subsidiary of the Company) and Taishan Power (a subsidiary of Huaneng Energy and Transportation (Holding) Company Limited) entered into an agreement, pursuant to which Shandong Company acquired from Taishan Power its power assets which were formerly purchased from Shandong Xinneng Taishan Power Generation Co Ltd. Huaneng Group. Therefore our abovementioned undertaking has been fulfiled.
B.Related party transactions
Guarantees
The table below sets forth information on guarantees provided by Huaneng Group, HIPDC and the Company to the related parties in 20162018 for the purposes of financing their operation, construction and renovation.
Guarantor Guarantee Interest Rate Largest Amount Outstanding in 2016 Amount Outstanding As of December 31, 2016 Guarantee Interest Rate Largest Amount Outstanding in 2018 Amount Outstanding as of December 31,2018
   (%) (RMB) (RMB)   % (RMB) (RMB)
Huaneng Group 
Yangliuqing Power Company(1)
 2.15 213,993,985.80 190,992,467.43 
Yangliuqing Power Company(1)
 2.15 172,568,290.63 142,006,568.31
 
Hainan Power(1)
 4.17 250,000,000.00 125,000,000.00
 
Nongan Biomass(1)
 4.41 42,578,800.00 19,354,500.00
 
Shandong Power(1)
 6.03 1,210,000,000.00 605,000,000.00
 Hainan Power 4.17 500,000,000.00 375,000,000.00 
Ruyi Pakistan Energy(1)
 6.86 3,205,792,390.58   2,136,747,553.68
HIPDC The Company 5.00 2,000,000,000.00 2,000,000,000.00 The Company 5.00 2,000,000,000.00 2,000,000,000.00
 Ruijin Power 4.41 228,000,000.00 142,000,000.00 
Ruijin Power(1)
 4.41 99,600,000.00 57,200,000.00
The Company 
Tuas Power Company(1)
 SIBOR+1.65 10,784,837,243.69 10,796,006,335.62 
Tuas Power Company(1)
 SIBOR+1.65 10,807,738,211.20 10,702,964,205.78
 
Tuas Power Company(1)
 SIBOR+1.65 1,581,569,715.30 1,583,207,635.02 
Tuas Power Company(1)
 SIBOR+1.65 1,584,928,085.55 1,569,563,236.72

Note:
(1)These entities are subsidiaries of the Company.
(1)   These entities are subsidiaries of the Company.

Loans
The table below sets forth the loans made by Huaneng Group and subsidiaries of Huaneng Group, and the Company to the related parties in 20162018 for the purposes of financing their operation, construction and renovation.
Lender Borrower Interest Rate Largest Amount Outstanding in 2016 Outstanding Balance as of December 31, 2016 Borrower Interest Rate Largest Amount Outstanding in 2018 Outstanding Balance as of December 31, 2018
   % (RMB) (RMB)   % (RMB) (RMB)
HIPDC Chaohu Power 4.75 210,000 210,000
HIPDC Jingmen Power 5.30 300,000,000 0
Huaneng Finance Dalongtan Hydropower 4.75 30,000,000 25,000,000 Weihai Power Plant 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Hainan Power 4.41 166,000,000 126,000,000 Huaiyin II Power 4.1325 300,000,000.00 300,000,000.00
Huaneng Finance Qingdao Co-generation 4.66 60,000,000 60,000,000 Suzhou Industrial Park 4.1325 70,000,000.00 70,000,000.00
Huaneng Finance Qingdao Co-generation 4.66 75,000,000 75,000,000 Qinbei Power Plant 4.1325 200,000,000.00 200,000,000.00
Huaneng Finance Weihai Power 3.92 100,000,000 0 Qinbei Power Plant 4.1325 200,000,000.00 200,000,000.00
Huaneng Finance Huaiyin II Power 3.92 150,000,000 0 Yushe Power Plant 4.35 330,000,000.00 330,000,000.00
Huaneng Finance Huaiyin II Power 3.92 200,000,000 200,000,000
Huaneng Finance Suzhou Industrial Park 5.04 0 0
Huaneng Finance Suzhou Industrial Park 3.92 40,000,000 0
Huaneng Finance Qinbei Power 3.92 200,000,000 0
Huaneng Finance Qinbei Power 3.92 200,000,000 200,000,000
Huaneng Finance Yushe Power 4.13 100,000,000 0
Huaneng Finance Yushe Power 4.13 130,000,000 0
Huaneng Finance Yushe Power 4.13 100,000,000 0
Huaneng Finance Yushe Power 4.13 330,000,000 330,000,000
Huaneng Finance Wuhan Power 3.92 200,000,000 0
Huaneng Finance Wuhan Power 3.92 200,000,000 200,000,000
Huaneng Finance Wuhan Power 3.92 200,000,000 200,000,000
Huaneng Finance Wuhan Power 3.92 200,000,000 200,000,000
Huaneng Finance Yangliuqing Power 3.92 200,000,000 0
Huaneng Finance Yangliuqing Power 3.92 80,500,000 0
Huaneng Finance Yangliuqing Power 3.92 200,000,000 200,000,000
Huaneng Finance Yangliuqing Power 3.92 100,000,000 100,000,000
Huaneng Finance Tongxiang CGGT 4.13 100,000,000 0
Huaneng Finance Tongxiang CGGT 4.13 150,000,000 150,000,000
Huaneng Finance Xiangqi Hydropower 3.92 200,000,000 200,000,000
Huaneng Finance Suzhou Power  4.13  100,000,000  0
Huaneng Finance Suzhou Power  4.13 100,000,000  0
Huaneng Finance  Suzhou Power  4.13 70,000,000 0
Huaneng Finance Suzhou Power 4.13 100,000,000 100,000,000
Huaneng Finance Suzhou Power 4.13 100,000,000 100,000,000
Huaneng Finance Suzhou Power  4.13 70,000,000 70,000,000

115121
Lender Borrower Interest Rate Largest Amount Outstanding in 2018 Outstanding Balance as of December 31, 2018
    % (RMB) (RMB)
Huaneng Finance Xindian Power Plant 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Xindian Power Plant 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Luohuang Power Plant 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Luohuang Power Plant 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Luohuang Power Plant 4.1325 200,000,000.00 200,000,000.00
Huaneng Finance Pingliang Power Plant 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Pingliang Power Plant 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Pingliang Power Plant 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Pingliang Power Plant 4.75 100,000,000.00 100,000,000.00
Huaneng Finance Yangliuqing Co-generation 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Yangliuqing Co-generation 4.1325 200,000,000.00 200,000,000.00
Huaneng Finance Yangliuqing Co-generation 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Xiangqi Hydropower 4.1325 50,000,000.00 50,000,000.00
Huaneng Finance Xiangqi Hydropower 4.1325 50,000,000.00 50,000,000.00
Huaneng Finance Yingkou Co-generation 4.1325 300,000,000.00 300,000,000.00
Huaneng Finance Qingdao Port 4.1325 60,000,000.00 60,000,000.00
Huaneng Finance Qingdao Port 4.5125 40,000,000.00 40,000,000.00
Huaneng Finance Taicang Port 4.1325 150,000,000.00 150,000,000.00
Huaneng Finance Tongxiang CCGT 4.35 200,000,000.00 200,000,000.00
Huaneng Finance Qingdao Co-generation 4.655 195,000,000.00 187,000,000.00
Huaneng Finance Luoyang Co-generation Power Plant 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Luoyang Yangguang Power Plant 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Fuyuan Wind Power 4.1325 15,000,000.00 15,000,000.00
Huaneng Finance Panzhou Wind Power 4.655 200,000,000.00 200,000,000.00
Huaneng Finance Dongshan CCGT 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Tongshan Wind Power 4.1325 142,000,000.00 142,000,000.00
Huaneng Finance Nanjing Thermal Power 4.2195 70,000,000.00 70,000,000.00
Huaneng Finance Nanjing Thermal Power 4.35 150,000,000.00 150,000,000.00
Huaneng Finance Luhe Wind Power 4.5125 28,000,000.00 28,000,000.00
Huaneng Finance Lingang Co-generation CCGT 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Lingang Co-generation CCGT 4.1325 170,000,000.00 170,000,000.00
Huaneng Finance Mianchi Co-generation 4.35 200,000,000.00 200,000,000.00
Huaneng Finance Mianchi Co-generation 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Yingkou Xianrendao Co-generation Power 4.35 15,000,000.00 15,000,000.00
Huaneng Finance Yingkou Xianrendao Co-generation Power 4.35 50,000,000.00 50,000,000.00
Huaneng Finance Changxing Photovoltaic 4.5125 35,000,000.00 35,000,000.00
Huaneng Finance Zhongxiang Hujiawan Wind Power 4.655 200,000,000.00 191,000,000.00
Huaneng Finance Zhumadian Wind Power 4.1325 180,000,000.00 180,000,000.00
Huaneng Finance Wuhan Power 4.1325 200,000,000.00 200,000,000.00

LenderBorrowerInterest RateLargest Amount Outstanding in 2016Outstanding Balance as of December 31, 2016
%(RMB)(RMB)
Huaneng Finance Xindian Power 4.13 0 0
Huaneng Finance Xindian Power 4.13 200,000,000 100,000,000
Huaneng Finance Xindian Power 4.13 100,000,000 100,000,000
Huaneng Finance  Hainan Power 3.92 200,000,000 0
Huaneng Finance Jingmen Power 3.92 400,000,000 200,000,000
Huaneng Finance Luohuang Power 3.92 200,000,000 0
Huaneng Finance Luohuang Power 3.92 100,000,000 0
Huaneng Finance Luohuang Power 3.92 100,000,000 0
Huaneng Finance Luohuang Power 3.92 200,000,000 200,000,000
Huaneng Finance Luohuang Power 3.92 100,000,000 100,000,000
Huaneng Finance Hualiangting Power 4.13 5,000,000 5,000,000
Huaneng Finance Hualiangting Power 4.13 5,000,000 0
Huaneng Finance Yingcheng Thermal Power 3.92 60,000,000 60,000,000
Huaneng Finance Yingcheng Thermal Power 3.92 0 0
Huaneng Finance Yingcheng Thermal Power 3.92 40,000,000 40,000,000
Huaneng Finance Pingliang Power 3.92 100,000,000 0
Huaneng Finance Pingliang Power 3.92 100,000,000 0
Huaneng Finance Pingliang Power 3.92 100,000,000 100,000,000
Huaneng Finance Pingliang Power 3.92 100,000,000 100,000,000
Huaneng Finance Pingliang Power 3.92 100,000,000 100,000,000
Huaneng Group The Company 4.75 640,484,600 640,484,600
Huaneng Group Wuhan Power 4.75 24,530,000 24,530,000
The Company Yuwang Energy 4.75 1,047,000,000 922,500,000
The Company Yuwang Energy 4.51 100,000,000 100,000,000
The Company Yuwang Energy 4.28 78,000,000 78,000,000
The Company Yuwang Energy 4.28 60,000,000 60,000,000
The Company Yuwang Energy 4.35 60,000,000 60,000,000
The Company Yuwang Energy 4.28 15,000,000 15,000,000
The Company Yuwang Energy 4.75 227,000,000 -
The Company Yuwang Energy 4.75 100,500,000 -
The Company Yuwang Energy 4.75 88,000,000 -
The Company Yuwang Energy 5.1 500,000,000 -
The Company Yuwang Energy 5.06 250,000,000 -
The Company Yuwang Energy 4.35 100,000,000 -
The Company Yuwang Energy 5.06 40,000,000 -
The Company Yuwang Energy 4.35 11,000,000 -
The Company Huaide Wind Power 4.35 140,000,000 140,000,000
The Company Huaide Wind Power 4.51 170,000,000 130,000,000
The Company Huaide Wind Power 4.35 30,000,000 30,000,000
The Company Huaide Wind Power 4.35 140,000,000 -
The Company Huaide Wind Power 4.35 68,000,000 -
The Company Dalian Power 4.51 21,000,000 -
The Company Wafangdian Wind Power 4.35 112,500,000 -
The Company Fujian Harbour 4.35 1,561,800,000 1,561,800,000
The Company Fujian Harbour 4.35 188,000,000 188,000,000
The Company Fujian Harbour 4.35 21,000,000 21,000,000
The Company Fujian Harbour 4.35 20,000,000 20,000,000
The Company Fujian Harbour 4.35 20,000,000 20,000,000
The Company Fujian Harbour 4.35 5,000,000 5,000,000
The Company Fujian Harbour 5.70 780,000,000 -
The Company Fujian Harbour 4.66 780,000,000 -
The Company Fujian Harbour 4.66 303,000,000 -
The Company Fujian Harbour 4.66 246,800,000 -
The Company Fujian Harbour 5.70 208,800,000 -
The Company Fujian Harbour 5.10 132,000,000 -
The Company Fujian Harbour 5.70 90,000,000 -
The Company Fujian Harbour 6.46 70,000,000 -
The Company Fujian Harbour 5.70 50,000,000 -
The Company Fujian Harbour 5.70 50,000,000 -
The Company Fujian Harbour 5.70 43,000,000 -
The Company Fujian Harbour 5.70 40,000,000 -
The Company Fujian Harbour 5.70 38,000,000 -
The Company Fujian Harbour 5.70 30,000,000 -
The Company Fujian Harbour 4.35 20,000,000 -
The Company Shanghai Shidongkou 4.28 5,160,000 -
The Company Linggang Co-generation CCGT 4.51 555,000,000 510,000,000
The Company Linggang Co-generation CCGT 4.13 400,000,000 -
The Company Fuyuan Wind Power 4.60 40,000,000 -
116122
Lender Borrower Interest Rate Largest Amount Outstanding in 2018 Outstanding Balance as of December 31, 2018
    % (RMB) (RMB)
Huaneng Finance Wuhan Power 4.1325 150,000,000.00 150,000,000.00
Huaneng Finance Wuhan Power 4.1325 150,000,000.00 150,000,000.00
Huaneng Finance Anyuan Power 4.35 200,000,000.00 200,000,000.00
Huaneng Finance Hualiangting Hydropower 4.1325 8,000,000.00 8,000,000.00
Huaneng Finance Chaohu Power 4.5125 150,000,000.00 150,000,000.00
Huaneng Finance Jingmen Thermal Power 4.1325 200,000,000.00 200,000,000.00
Huaneng Finance Jingmen Thermal Power 4.1325 200,000,000.00 200,000,000.00
Huaneng Finance Suzhou CCGT 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Suzhou CCGT 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Suzhou CCGT 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Ruijin Power 4.1325 200,000,000.00 200,000,000.00
Huaneng Finance Yingcheng Thermal Power 4.2195 150,000,000.00 150,000,000.00
Huaneng Finance Yingcheng Thermal Power 4.2195 150,000,000.00 150,000,000.00
Huaneng Finance Suizhou Power Plant 4.655 100,000,000.00 95,500,000.00
Huaneng Finance Dongguan CCGT 4.655 200,000,000.00 200,000,000.00
Huaneng Finance Yueyang Xingang Photovoltaic 4.1325 10,000,000.00 10,000,000.00
Huaneng Finance Lvyuan Wind Power 4.35 20,000,000.00 20,000,000.00
Huaneng Finance Lvyuan Wind Power 4.5125 30,000,000.00 30,000,000.00
Huaneng Finance Hegang Power Plant 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Hegang Power Plant 4.35 80,000,000.00 80,000,000.00
Huaneng Finance Tongjiang Wind Power 4.1325 50,000,000.00 50,000,000.00
Huaneng Finance Xinhua Power Plant 4.5125 50,000,000.00 50,000,000.00
Huaneng Finance Jilin Power 4.75 200,000,000.00 200,000,000.00
Huaneng Finance Dongying New Energy 4.41 244,500,000.00 232,000,000.00
Huaneng Finance Jiaxiang Power 4.35 40,000,000.00 40,000,000.00
Huaneng Finance Jiaxiang Power 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Jiaxiang Power 4.35 50,000,000.00 50,000,000.00
Huaneng Finance Jiaxiang Power 4.35 50,000,000.00 50,000,000.00
Huaneng Finance Jiaxiang Power 4.35 50,000,000.00 50,000,000.00
Huaneng Finance Jiaxiang Power 4.35 50,000,000.00 50,000,000.00
Huaneng Finance Jiaxiang Power 4.35 50,000,000.00 50,000,000.00
Huaneng Finance Laiwu Power 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Laiwu New Energy 4.75 20,000,000.00 20,000,000.00
Huaneng Finance Liaocheng Co-generation 4.35 60,000,000.00 60,000,000.00
Huaneng Finance Liaocheng Co-generation 4.35 60,000,000.00 60,000,000.00
Huaneng Finance Liaocheng Co-generation 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Liaocheng Co-generation 4.35 60,000,000.00 60,000,000.00
Huaneng Finance Liaocheng Co-generation 4.5125 100,000,000.00 100,000,000.00
Huaneng Finance Liaocheng Co-generation 4.5125 60,000,000.00 60,000,000.00
Huaneng Finance Linyi Power 4.1325 100,000,000.00 100,000,000.00

LenderBorrowerInterest RateLargest Amount Outstanding in 2016Outstanding Balance as of December 31, 2016
%(RMB)(RMB)
The Company Fuyuan Wind Power 4.75 10,000,000 -
The Company Diandong Energy 4.75 2,271,000,000 2,271,000,000
The Company Diandong Energy 4.28 1,000,000,000 1,000,000,000
The Company Diandong Energy 4.28 350,000,000 350,000,000
The Company Diandong Energy 4.35 380,000,000 230,000,000
The Company Diandong Energy 4.75 300,000,000 170,000,000
The Company Diandong Energy 4.35 125,000,000 125,000,000
The Company Diandong Energy 4.28 122,000,000 122,000,000
The Company Diandong Energy 4.28 122,000,000 122,000,000
The Company Diandong Energy 4.75 100,000,000 100,000,000
The Company Diandong Energy 4.75 100,000,000 100,000,000
The Company Diandong Energy 4.75 82,000,000 82,000,000
The Company Diandong Energy 4.75 210,000,000 -
The Company Diandong Energy 4.60 200,000,000 -
The Company Diandong Energy 4.60 150,000,000 -
The Company Diandong Energy 4.75 100,000,000 -
The Company Diandong Energy 3.95 1,000,000,000 -
The Company Diandong Energy 4.35 210,000,000 -
The Company Diandong Energy 4.60 200,000,000 -
The Company Diandong Energy 4.60 200,000,000 -
The Company Luhe Wind Power 4.35 10,000,000 10,000,000
The Company Qidong Wind Power 4.35 360,000,000 360,000,000
The Company Qidong Wind Power 4.35 40,000,000 25,000,000
The Company Qidong Wind Power 4.35 360,000,000 -
The Company Qidong Wind Power 4.35 40,000,000 -
The Company Dongshan CCGT 4.51 234,396,000 234,396,000
The Company Dongshan CCGT 4.51 150,000,000 150,000,000
The Company Dongshan CCGT 4.51 65,604,000 65,604,000
The Company Dongshan CCGT 4.51 50,000,000 50,000,000
The Company Dongshan CCGT 4.35 165,000,000 -
The Company Dongshan CCGT 4.35 80,000,000 -
The Company Rudong Wind Power 4.28 270,000,000 -
The Company Rudong Wind Power 4.28 140,000,000 -
The Company Rudong Wind Power 4.28 50,000,000 -
The Company Rudong Wind Power 4.35 100,000,000 100,000,000
The Company Rudong Wind Power 4.35 100,000,000 85,000,000
The Company Rudong Wind Power 4.35 100,000,000 -
The Company Rudong Wind Power 4.35 100,000,000 -
The Company Weihai Power 5.54 24,203,000 -
The Company Anhui Power 4.35 190,000,000 -
The Company Anyuan Power 4.35 150,000,000 -
The Company Anyuan Power 4.35 50,000,000 -
The Company Taihang Power 4.35 50,000,000 -
The Company Zuoquan Power 4.35 1,000,000,000 1,000,000,000
The Company Zuoquan Power 4.35 900,000,000 900,000,000
The Company Zuoquan Power 4.35 1,900,000,000 -
The Company Pingliang Power 4.75 2,320,000,000 2,320,000,000
The Company Pingliang Power 4.60 1,250,000,000 -
The Company Pingliang Power 4.60 970,000,000 -
The Company Haimen Port 4.51 160,000,000 160,000,000
The Company Haimen Port 4.35 410,000,000 -
The Company Guangdong Power 4.35 190,000,000 -
The Company Changtu Wind Power 4.51 118,000,000 -
The Company Changtu Wind Power 4.35 35,000,000 -
The Company Guilin Power 4.35 20,000,000 -
The Company Tongxiang CGGT 4.35 400,000,000 400,000,000
The Company Tongxiang CGGT 4.35 700,000,000 70,000,000
The Company Tongxiang CGGT 4.35 300,000,000 -
The Company Tongxiang CGGT 4.35 100,000,000 -
The Company Tongxiang CGGT 4.35 50,000,000 -
The Company Tongxiang CGGT 4.35 30,000,000 -
The Company Yushe Power 4.28 765,000,000 765,000,000
The Company Yushe Power 4.51 200,000,000 200,000,000
The Company Yushe Power 4.51 140,000,000 140,000,000
The Company Yushe Power 4.75 140,000,000 140,000,000
The Company Yushe Power 4.28 100,000,000 100,000,000
The Company Yushe Power 4.13 100,000,000 100,000,000
The Company Yushe Power 4.13 500,000,000 -
The Company Yushe Power 4.13 365,000,000 -
The Company Yushe Power 4.79 140,000,000 -
The Company Yushe Power 4.35 140,000,000 -
The Company Yushe Power 4.35 100,000,000 -
117123
Lender Borrower Interest Rate Largest Amount Outstanding in 2018 Outstanding Balance as of December 31, 2018
    % (RMB) (RMB)
Huaneng Finance Qufu Co-generation 4.35 261,000,000.00 261,000,000.00
Huaneng Finance Ruyi Helan Rooftop Photovoltaic 4.41 72,000,000.00 71,500,000.00
Huaneng Finance Yantai Bajiao 4.35 200,000,000.00 200,000,000.00
Huaneng Finance Yantai Bajiao 4.655 200,000,000.00 200,000,000.00
Huaneng Finance Baiyanghe Power Plant 4.1325 40,000,000.00 40,000,000.00
Huaneng Finance Baiyanghe Power Plant 4.1325 100,000,000.00 100,000,000.00
Huaneng Finance Baiyanghe Power Plant 4.1325 110,000,000.00 110,000,000.00
Huaneng Finance Baiyanghe Power Plant 4.1325 60,000,000.00 30,000,000.00
Huaneng Finance Muping Wind Power 4.5125 6,000,000.00 6,000,000.00
Huaneng Finance Penglai Wind Power 4.1325 30,000,000.00 30,000,000.00
Huaneng Finance Penglai Wind Power 4.41 193,000,000.00 187,000,000.00
Huaneng Finance Penglai Wind Power 4.513 50,000,000.00 50,000,000.00
Huaneng Finance Yantai Power Plant 4.1325 450,000,000.00 433,000,000.00
Huaneng Finance Yantai Power Plant 4.5125 100,000,000.00 100,000,000.00
Huaneng Finance Yantai Power Plant 4.5125 50,000,000.00 50,000,000.00
Huaneng Finance Sishui Photovoltaic 4.275 10,000,000.00 10,000,000.00
Huaneng Finance Weishan New Energy 4.35 100,000,000.00 100,000,000.00
Huaneng Finance Weishan New Energy 4.655 200,000,000.00 140,000,000.00
Huaneng Finance Huaneng Information Company 4.5125 6,000,000.00 6,000,000.00
Huaneng Finance Zhanhua Photovoltaic 4.41 447,000,000.00 346,000,000.00
Huaneng Finance Boshan Photovoltaic 4.75 10,000,000.00 10,000,000.00
Huaneng Finance Liaocheng Changrun 4.35 90,000,000.00 90,000,000.00
Huaneng Finance Liaocheng Changrun 4.75 1,000,000.00 1,000,000.00
Huaneng Finance Laiwu Thermal Power 4.1325 70,000,000.00 70,000,000.00
Huaneng Finance Liaocheng Thermal Power
 4.5125 50,000,000.00 50,000,000.00
Huaneng Finance Liaocheng Thermal Power
 4.5125 50,000,000.00 50,000,000.00
Huaneng Finance Liaocheng Thermal Power
 4.5125 50,000,000.00 50,000,000.00
Huaneng Finance Rizhao Power Plant 4.1325 150,000,000.00 150,000,000.00
Huaneng Finance Yantai 500 4.75 50,000,000.00 50,000,000.00
Huaneng Finance Zhongyuan CCGT 4.5125 200,000,000.00 100,000,000.00
Huaneng Finance Zhongyuan CCGT 4.5125 200,000,000.00 100,000,000.00
Huaneng Finance Zhongyuan CCGT 4.75 200,000,000.00 100,000,000.00
Huaneng Group The Company 4.75 24,530,000.00 24,530,000.00
Huaneng Group The Company 4.75 640,694,600.00 640,694,600.00
Tiancheng Financial Leasing Pingliang Power Plant 4.4175 65,000,000.00 45,000,000.00
Tiancheng Financial Leasing Pingliang Power Plant 4.4175 177,894,736.82 123,157,894.70
Tiancheng Financial Leasing Zhumadian Wind Powe 4.75 18,876,560.00 18,876,560.00
Tiancheng Financial Leasing Anyang Energy 4.75 184,500,000.00 102,500,000.00
Tiancheng Financial Leasing Mianchi Clean Energy 4.75 53,200,000.00 53,200,000.00
Tiancheng Financial Leasing Shuangyu Photovoltaic 4.03 79,910,354.10 70,051,643.19
Tiancheng Financial Leasing Zhaodong Dechang Photovoltaic 4.03 50,922,522.00 50,741,853.02
Huaneng Yuncheng Commercial Factoring (Tianjin) Co., Ltd. Ruijin Power Plant 6.9 50,000,000.00 50,000,000.00


LenderBorrowerInterest RateLargest Amount Outstanding in 2016Outstanding Balance as of December 31, 2016
%(RMB)(RMB)
The Company Shantou Haimen Power  5.19 600,000,000 600,000,000
The Company Shantou Haimen Power  4.35 500,000,000 500,000,000
The Company Shantou Haimen Power  5.19 1,400,000,000 270,000,000
The Company Shantou Haimen Power   6.94 1,000,000,000  -
The Company Shantou Haimen Power 4.35 330,000,000 -
The Company Shantou Haimen Power 4.35 300,000,000 -
The Company Shantou Haimen Power 4.35 250,000,000 -
The Company Shantou Haimen Power 4.35 70,000,000 -
The Company Jiangxi Clean Energy 4.35 30,000,000 30,000,000
The Company Jiangxi Clean Energy 4.35 20,000,000 -
The Company Qinbei Power 4.35 700,000,000 700,000,000
The Company Qinbei Power 4.35 700,000,000 700,000,000
The Company Qinbei Power 4.75 4,200,000 4,200,000
The Company Qinbei Power 4.35 1,400,000,000 -
The Company Qinbei Power 4.28 4,200,000 -
The Company Zhanhua Co-generation 4.75 1,250,000,000 1,250,000,000
The Company Zhanhua Co-generation 4.37 300,000,000 -
The Company Huaiyin II Power 4.51 450,000,000 400,000,000
The Company Huaiyin II Power 4.75 450,000,000 150,000,000
The Company Huaiyin II Power 4.75 50,000,000 50,000,000
The Company Huaiyin II Power 4.35 450,000,000 -
The Company Yueyang Power 4.75 14,780,000 14,780,000
The Company Yueyang Power 4.28 14,780,000 -
The Company Guidong Wind Power 4.60 60,000,000 -
The Company Xiangqi Hydropower 4.51 120,000,000 70,000,000
The Company Xiangqi Hydropower 4.35 20,000,000 20,000,000
The Company Xiangqi Hydropower 4.35 200,000,000 -
The Company Xiangqi Hydropower 4.35 20,000,000 -
The Company Xiangqi Hydropower 4.35 20,000,000 -
The Company Xiangqi Hydropower 4.35 20,000,000 -
The Company Subaoding Wind Power 4.35 50,000,000 -
The Company Guanyun Co-generation 4.35 50,000,000 50,000,000
The Company Guanyun Co-generation 4.35 40,000,000 40,000,000
The Company Guanyun Co-generation 4.35 10,000,000 10,000,000
The Company Guanyun Co-generation 4.35 64,000,000 -
The Company Ruijin Power 4.85 100,000,000 -
The Company Luoyuan Power 4.13 190,000,000 -
The Company Luoyuan Power 4.13 147,000,000 -
The Company Luoyuan Power 4.35 130,000,000 -
The Company Luoyuan Power 4.13 80,000,000 -
The Company Luoyuan Power 4.35 65,000,000 -
The Company Luoyuan Power 4.35 60,000,000 -
The Company Luoyuan Power 4.35 50,000,000 -
The Company Luoyuan Power 4.35 35,000,000 -
The Company Luoyuan Power 4.35 10,000,000 -
The Company Suzihe Hydropower 4.28 190,890,000 190,890,000
The Company Suzihe Hydropower 4.35 4,900,000 4,900,000
The Company Suzihe Hydropower 4.35 4,900,000 4,900,000
The Company Suzihe Hydropower 4.35 4,900,000 4,900,000
The Company Suzihe Hydropower 4.35 400,890,000 -
The Company Suzhou Power 4.35 100,000,000 -
The Company Suzhou CCGT 4.35 8,000,000 8,000,000
The Company Suzhou CCGT 4.35 220,000,000 -
The Company Suzhou CCGT 4.35 20,000,000 -
The Company Suzhou CCGT 4.35 7,000,000 -
The Company Suzhou CCGT 4.35 3,000,000 -
The Company Yingkou Xianrendao Co-generation 4.51 40,000,000 -
The Company Yingkou Co-generation 5.20 700,000,000 700,000,000
The Company Yingkou Co-generation 4.35 500,000,000 -
The Company Yingkou Co-generation 4.35 310,000,000 -
The Company Panxian Wind Power 4.35 54,000,000 -
The Company Panxian Wind Power 4.35 10,000,000 -
The Company Panxian Wind Power 4.51 5,000,000 -
The Company Xindian Power 4.75 1,425,000,000 1,340,000,000
The Company Xindian Power 4.35 1,285,000,000 -
The Company Xindian Power 4.35 720,000,000 -
The Company Liangjiang CCGT 4.35 300,000,000 -
The Company Liangjiang CCGT 4.35 230,000,000 -
The Company Liangjiang CCGT 5.35 200,000,000 -
The Company Liangjiang CCGT 4.35 131,000,000 -
The Company Liangjiang CCGT 4.35 130,000,000 -
The Company Liangjiang CCGT 5.08 50,000,000 -
118124
LenderBorrowerInterest RateLargest Amount Outstanding in 2016Outstanding Balance as of December 31, 2016
%(RMB)(RMB)
The Company Liangjiang CCGT 5.08 50,000,000 -
The Company Luohuang Power 4.75 34,500,000 34,500,000
The Company Luohuang Power 4.28 34,500,000 -
The Company Changxing Power 4.35 140,000,000 -
The Company Jieshan Wind Power 4.35 20,000,000 -
The Company Qingdao Co-generation 4.75 50,000,000 50,000,000
The Company Qingdao Co-generation 4.51 12,000,000 12,000,000
The Company Qingdao Co-generation 4.35 50,000,000 -
The Company Yangliuqing Power 4.75 4,390,000 4,390,000
The Company Yangliuqing Power 4.28 4,390,000 -
The Company Hualu Sea Transportation 4.51 130,000,000 130,000,000
The Company Hualu Sea Transportation 4.51 35,000,000 35,000,000
The Company Hualu Sea Transportation 4.79 130,000,000 -
The Company Enshi Maweigou Hydropower 4.51 12,000,000 12,000,000
The Company Enshi Maweigou Hydropower 4.35 12,000,000 12,000,000
The Company Enshi Maweigou Hydropower 4.51 10,000,000 10,000,000
The Company Enshi Maweigou Hydropower 4.51 502,000,000 -
The Company Dalongtan Hydropower 4.35 30,000,000 -
The Company Dalongtan Hydropower 4.51 5,000,000 -
The Company Huaqing Energy 4.51 12,000,000 12,000,000
The Company Huaqing Energy 4.51 10,000,000 10,000,000
The Company Huaqing Energy 4.51 10,000,000 10,000,000
The Company Huaqing Energy 4.51 8,000,000 8,000,000
Tiancheng Financial Leasing Yuwang Energy 4.42 200,000,000 195,500,000
Tiancheng Financial Leasing Yuwang Energy 4.42 200,000,000 196,100,000
Tiancheng Financial Leasing Yuwang Energy 4.42 540,000,000 532,800,000
Tiancheng Financial Leasing Yuwang Energy 4.42 560,000,000 552,800,000
Tiancheng Financial Leasing Pingliang Power 4.42 100,000,000 85,000,000
Tiancheng Financial Leasing Pingliang Power 4.42 260,000,000 232,631,578
Tiancheng Financial Leasing Diandong Energy 4.42 500,000,000 486,500,000
Tiancheng Financial Leasing Diandong Energy 4.42 300,000,000 291,750,000
Tiancheng Financial Leasing Diandong Energy 4.42 175,000,000 171,700,000
Tiancheng Financial Leasing Diandong Energy 4.42 125,000,000 122,800,000
Xi’an Thermal Power Research Institute The Company 3.92 100,000,000 100,000,000
Lease Agreement
On August 2, 2016, we entered into a leasing agreement and a property management agreement with Huaneng Property Co., Ltd., pursuant to which a total area of 30,465.70 square meters in Huaneng Mansion will be leased to us and the annual rent (including the property management fee) is RMB 114.54 million, effective from July 1, 2016 to June 30, 2019.On December 18, 2018, we have entered into an amendment agreement with Huaneng Property Co., Ltd., pursuant to which the lease area was amended as 19,210.00 square meters and the annual rent was amended as RMB 72.22 million.
Transactions with Huaneng Group
On November 25, 2015,December 12, 2017, we entered into the Huaneng Group Framework Agreement with Huaneng Group, our ultimate controlling shareholder, for a term commencing on January 1, 20162018 and expiring on December 31, 2016.2018. Pursuant to the Huaneng Group Framework Agreement, we will conduct, among other things, the following transactions with Huaneng Group and its subsidiaries and associates: (i) purchase of ancillary equipment and parts; (ii) purchase of coalfuel and transportation services; (iii) sale of products; (iv) leasing of facilities, land and office spaces; (v) purchase of(iv) technical services, engineering contracting services and other services; (vi)(v) provision of entrusted sale services; (vi) sale of products; (vii) depositspurchase of the Companyelectricity; (viii) sale of electricity; and its subsidiaries; and (viii) entrusted sale service.(ix) purchase of heat. Such transactions will be conducted on an on-going basis.
On October 14, 2016, the Company signed an agreement for the transfer of equity interests in certain companiesEntrusted Management Agreement with Huaneng Group (the “Transfer Agreement”) and a profit forecasting compensation
On January 29, 2015, we have entered into certain entrusted management agreement with Huaneng Group for a term of three years in Beijing.connection with mutual management of electricity assets. Services under such entrusted management arrangements include preliminary project planning, annual budget and comprehensive planning, power marketing, production management of power plants, construction management, financial management, human resources and labor wages management, administration management, legal service management, assets operation and shareholding management, risk management and internal control management, information disclosure management, related party transaction management, general supervision, comprehensive affairs management and reporting/co-ordination management. By entering into these entrusted management arrangements, we aim to further improve the overall and management efficiency of our electricity assets in several provinces via the provincial level management system of Huaneng Group.
Coal purchases and service fee occurred for transportation
In 2017, we paid RMB18,850.31million, RMB435.43 million, RMB1,962.03 million and RMB2,377.30 million, respectively, to China Huaneng Group Fuel Co., Ltd., Huaneng Energy & Communications Holdings Co., Ltd. and its subsidiaries, Gansu Huating Coal Power Co., Ltd. and Shanghai Time Shipping for coal purchase and service fees incurred for transportation.

In 2018, we paid RMB20,777.60 million, RMB879.65 million, RMB3,210.18 million, RMB1,942.47 million and RMB2,087.60 million, respectively, to China Huaneng Group Fuel Co., Ltd., Huaneng Energy & Communications Holdings Co., Ltd. and its subsidiaries, Gansu Huating Coal Power Co., Ltd., Shanghai Time Shipping and Huaneng Hulunbuir Energy Development Company Ltd. for coal purchase and service fees incurred for transportation.
Transaction with Tiancheng Financial Leasing
On December 5, 2016, we entered into the Financial Leasing Agreement with Huaneng Tiancheng Financial Leasing Co., Ltd., or Tiancheng Financial Leasing, a subsidiary of Huaneng Group, for a term commencing on January 1, 2017 and expiring on December 31, 2019. The Financial Leasing Agreement provided the upper limit of the leasing transaction under the agreement between 2017 through 2019, and requires the internal approval and information disclosure for the proposed transactions. Pursuant to the transfer agreement,Financial Leasing Agreement, the Company agreed to purchase (i) 80% equity interest of Huaneng Shandong Power Limited; (ii) 100% equity interest of Huaneng Jilin Power Limited; (iii) 100% equity interest of Huaneng Heilongjiang Power Limited; and (iv) 90% equity interest of Huaneng Henan Zhongyuan Gas Power Generation Co., Ltd. from Huaneng Group for the consideration of RMB15.114 billion. According to the termsmaximum outstanding balance of the agreements,financial lease, on a daily basis, will not exceed RMB12.000 billion, and the Company paid 50%

125
interest, on an annual basis, shall not exceed RMB800 million. As of December 31, 2018, the consideration for such transaction to Huaneng Group on January 9, 2017.maximum outstanding balance we had at Tiancheng Financial Leasing was RMB 4.267 billion, and our annual interest was RMB145 million.
Transactions with Huaneng Finance
On April 22, 2014,December 31, 2016, we entered into the Huaneng Finance Framework Agreement with Huaneng Finance, a subsidiary of Huaneng Group, for a term commencing on January 1, 20152017 and expiring on December 31, 2017.2019. Pursuant to the Huaneng Finance Framework Agreement, we will enter into the following transactions with Huaneng Finance: (i) placing cash deposits by us with Huaneng Finance; (ii) provision of discounting services by Huaneng Finance to us; and (iii) provision of loan advancement by Huaneng Finance to us. Such transactions will be conducted on an on-going basis and will constitute continuing connected transactions under the Hong Kong Listing Rules. During the period from 20152017 to 2017,2019, the maximum outstanding balance of the deposits to be placed with Huaneng Finance under the Huaneng Finance Framework Agreement, on a daily basis, will not exceed RMB8RMB13.000 billion. As of December 31, 2016,2018, we placed with Huaneng Finance current deposits of approximately RMB5,155.00RMB10,915 million, which bore interest rates ranging from 0.35% to 1.35% per annum.
119Transaction with Hebei Hanfeng Power Generation Limited Liability Company
Entrusted Management Agreement with Huaneng Group
On January 29, 2015,September 12, 2017, we have entered into certain entrusted managementan agreement with Huaneng GroupHebei Hanfeng Power Generation Limited Liability Company, ("Hebei Hanfeng") for a terman effective period from January 1, 2018 to December 31, 2018. Pursuant to the transfer agreement, we and our subsidiaries shall purchase electricity from Hebei Hanfeng and its subsidiary and associates. The cap of three years in connection with mutual managementthe transaction amount for purchase of electricity by us and coal assets. Services under such entrusted management arrangements include preliminary project planning, annual budget and comprehensive planning, power marketing, production management of power plants, construction management, financial management, human resources and labor wages management, administration management, legal service management, assets operation and shareholding management, information disclosure management, related party transaction management, risk and internal control management, general supervision, comprehensive affairs management and reporting/co-ordination management. By entering into these entrusted management arrangements, we aim to further improve the overall and management efficiency of our electricity and coal assets in several provinces via the province level management system of Huaneng Group.
Coal purchases and service fee occurred for transportation
In 2016, we paid RMB14,502.83 million, RMB800.98 million, RMB1,467.84 million, RMB1,666.07 million and RMB2,472.71 million, respectively, to China Huaneng Group Fuel Co., Ltd., Huaneng Energy & Communications Holdings Co., Ltd.subsidiaries from Hebei Hanfeng and its subsidiaries Rizhao Power Company, Gansu Huating Coal Power Co., Ltd. and Shanghai Time Shipping for coal purchase and service fees incurred for transportation.associates is estimated to be RMB600 million.

Capital Increase in Tiancheng Leasing
Transactions with Huaneng Group and HIPDC
On June 21, 2016,February 12, 2018, the Company signedentered into a capital increase agreement with the existing shareholders of  Tiancheng Financial Leasing, pursuant to which the  Company and the existing shareholders of Tiancheng Financial Leasing agreed to subscribe by way of cash for the new registered capital of Tiancheng Financial Leasing pro rata to their respective proportion of shareholding in Tiancheng Financial Leasing. The Company paid to Tiancheng Leasing an amount of not more than RMB270 million as the consideration of the capital increase, which sum was funded by the Company’s internal cash resources.
Acquisition of Equity Interests in Liaocheng Thermal Power, Laizhou Wind Power, Laiwu Thermal Power and Laiwu Power Generation
On July 31, 2018, Shandong Power (a subsidiary of the Company) and Taishan Power entered into the Transfer Agreement, pursuant to which Shandong Power shall acquire from Taishan Power (i) 75% interests in the registered capital of Shandong Huaneng Group, HIPDC, State NuclearLiaocheng Thermal Power Technology Company Limited (“SNPTC”Liaocheng Thermal Power”), (ii) 80% interests in the registered capital of Shandong Huaneng Laizhou Wind Power Generation Company Limited (“Laizhou Wind Power”), (iii) 80% interests in the registered capital of Shandong Huaneng Laiwu Thermal Power Company Limited (“Laiwu Thermal Power”), and (iv) 15% interests in the registered capital of Huaneng Laiwu Power Generation Limited (“Laiwu Power Generation”) at the consideration of RMB1,800,020,000. Upon completion of the Transfer, Liaocheng Thermal Power, Laizhou Wind Power, and Huaneng Shidaowan NuclearLaiwu Thermal Power Developmentwill become subsidiaries of Shandong Company.
Formation of Joint Venture
On October 23, 2018, Jiangsu Company (a branch of the Company) entered into the joint venture and cooperation agreement with Hua Neng HK and CSIC Haizhuang (Beijing) Renewables Energy Investment Co., Ltd. (“Shidaowan Nuclear”) (“Capital Increase Agreement”Haizhuang Renewables”). Pursuant to the capital increaseterms and conditions of the joint venture and cooperation agreement, the parties agreed to contribute the new capital in cash in proportion to their original shareholding in Shidaowan Nuclear. The Company agreed to subscribe an aggregate RMB 135.000 million of the new capital of Shidaowan Nuclear;would jointly establish Huaneng Group agreed to subscribe RMB 180.000 million; HIPDC agreed to subscribe RMB 135.000 million; SNPTC agreed to subscribe RMB 150.000 million. Upon completion of this capital increase, Shidaowan Nuclear’s investing parties and their shareholding percentages are as follows respectively: the Company (22.5%), Huaneng Group (30%), HIPDC (22.5%), and SNPTC (25%).

Transaction with Huaneng Nuclear

On March 22, 2016, the Company signed a capital increase agreement with Huaneng Nuclear Power Development Company Ltd. (“Huaneng Nuclear”), China National NuclearShengdong Rudong Offshore Wind Power Co., Ltd. (“China National Nuclear”Shengdong”) with Hua Neng HK and Hainan Nuclear Power Limited Liability Company (“Hainan Nuclear”) (“Capital Increase Agreement”). Pursuant to the capital increase agreement, parties agreed to contribute the new capital in cash in proportion to their original shareholding in Huaneng Nuclear.Haizhuang Renewables. The Company agreed towould subscribe for in aggregate RMB 123.696 million of part newthe registered capital of Hainan Nuclear; China National Nuclear agreed tono more than RMB790 million by cash with its own fund; Hua Neng HK would subscribe for RMB 210.283 milllionthe registered capital of RMB200 million (or its equivalent) by cash; and Huaneng Nuclear agreed toHaizhuang Renewables would subscribe for RMB 78,341 million. Upon completionthe registered capital of this capital increase, Hainan Nuclear’s investing parties and their shareholding percentages are respectively as follows: the Company (30%)RMB10 million by injecting net assets of its wholly-owned subsidiary Shengdong Rudong Offshore Wind Power Co., China National Nuclear (51%) and Huaneng Nuclear (19%).
120
Ltd. with value of RMB10 million after valuation.
For a detailed discussion of related party transactions, see Note 3537 to the Financial Statements.
C.           
C.Interests of experts and counsel
Not applicable.
ITEM 8    Financial Information
A.           
ITEM 8FINANCIAL INFORMATION
A.Consolidated statements and other financial information
See pages F-1 to F-114.F-144.
Legal proceedings
In April 2015, a construction contractor of a subsidiary of the Company brought an arbitration application against the subsidiary due to its dispute on construction settlement, through which, the contractor required the subsidiary to indemnify an amount of approximately RMB83.46 million as construction payment and relevant interests incurred. As of December 31, 2016, it is difficult to estimate reasonably the financial effect arising from this outstanding arbitration since it is still pending for final judgment, therefore no provision has been provided for in respect thereof.

Save as disclosed above, as of December 31, 2016,2018, we are not a defendant in any material litigation or arbitration and no litigation or claim of material importance is known to us or any member of the Board of directors of us to be pending or threatened against us.
Dividend distribution policy
Our articles of association clearly define our cash dividend policy, i.e. when our earnings and accumulative undistributable profits for the current year are positive, and on the condition that our cash flow can satisfy our normal operation and sustainable development, we shall adopt a cash dividend appropriation policy on the principle that the cash dividend payout will not be less than 50% of the distributable profit realized in the then-current year's consolidated financial statement.
In addition, in order to allow all shareholders to better benefit from the development results of the Company, after considering the Company's strategic planning and development targets, industry development trends and other factors, the Company decided to further increase the proportion of cash dividends to shareholders in the next three years, and accordingly formulated the Shareholders Return Plan for the Next Three Years (2018 to 2020) of Huaneng Power International, Inc. pursuant to relevant regulations. Detailed terms and the proportion of the Company's cash dividends in the next three years are: when the profit and accumulated undistributed profits in the current year are positive, and on condition that the Company's cash flow is able to meet the need for its ordinary

126
operation and sustainable development, the Company shall distribute dividends in cash and the annual cash dividend payout shall, in principle, be no less than 70% of the realized distributable profits stated in the consolidated financial statement that year and such dividend shall be no less than RMB0.1 per share.
Our Board of Directors will determine the payment of dividends, if any, with respect to our shares on a per share basis. Any final dividend for a financial year shall be subject to shareholders' approval. The Board may declare interim and special dividends at any time under general authorization by a shareholders' ordinary resolution. A decision to declare or to pay any dividends in the future, and the amount of any dividends, will depend on our results of operations, cash flows, financial condition, future prospects and other factors which our Directors may determine as important.
For holders of our H shares,Shares, cash dividend payments, if any, shall be declared by our Board of Directors in Renminbi and paid in HK Dollars. The depositary will convert the HK Dollar dividend payments and distribute them to holders of ADSs in U.S. dollars, less expenses of conversion.
Dividends may be paid only out of our distributable profits (less allocation to the statutory funds of 10% of our net income determined in accordance with PRC GAAP) and may be subject to any applicable PRC withholding tax. Our Articles of Association limit our distributable profits to the lower of the amounts determined in accordance with PRC GAAP, and IFRS. Subject to the above, we expect to carry a positive, balanced and stable dividend distribution policy.
Our board hasOn March 19, 2019 the Board of Directors proposed a cash dividend of RMB0.29RMB0.10 per share, totaling approximately RMB1,569.81 million. This proposal is subject to the approval of the shareholders at the annual general meeting.
On May 3, 2018, upon the approval from the annual general meeting of the shareholders, we declared 2017 final dividend RMB0.10 (2016: RMB0.29) per ordinary share, (tax inclusive) for the year ended December 31, 2016, which is equivalent to RMB11.6 per ADS. The total dividend to be paid upon approval amounts tototaling approximately RMB4,408.11 million.RMB1,520 million (2016: RMB4,408 million).
121
B.           
B.Significant changes
Except as disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of our audited consolidated financial statements included in this annual report.
ITEM 9    The Offer and Listing
A.           
ITEM 9THE OFFER AND LISTING
A.Offer and listing details and markets
The Company's ADSs have been listed on the New York Stock Exchange since October 6, 1994. The table below sets forth, for the periods indicated, the high and low closing prices of the ADSs on the New York Stock Exchange
    Closing Price per ADS
    High Low
    (US$) (US$)
2012   37.15 21.02
2013   49.37 33.83
2014   56.44 31.51
2015   61.13 32.76
2016   37.79 22.86
       
2015 First Quarter 59.94 44.20
  Second Quarter 61.13 48.79
  Third Quarter 52.48 41.50
  Fourth Quarter 49.77 32.76
       
2016 First Quarter 36.81 29.44
  Second Quarter 37.79 24.61
  Third Quarter 26.36 22.86
  Fourth Quarter 26.04 23.82
       
2017 First Quarter 29.62 25.31
       
2016 October 25.90 24.11
  November 25.05 23.82
  December 26.04 24.62
       
2017 January 26.54 25.55
  February 28.35 25.31
  March 29.62 26.43

Source: Reuters
Exchange. Each ADS represents 40 H shares.Shares. As of March 31, 2017,2019, there were 114107 registered holders of American Depositary Receipts evidencing ADS.
On January 21, 1998, we listed our H sharesShares on the Hong Kong Stock Exchange. On February 26, 1998, we placed 250 million H Shares at the price of HK$4.40 per H shareShare or US$22.73 per ADS. In May 2004, we affectedeffected a two-for-one stock split by way of a stock dividend for all our outstanding shares including H shares. The table below sets forth, for the periods indicated, the high and low closing prices of H shares on the Hong Kong Stock Exchange.
    Closing Price per H Share
    High Low
    (HK$) (HK$)
2012   7.19 4.13
2013   9.64 6.21
2014   10.92 6.21
2015   11.76 6.40
2016   7.27 4.46
       
2015 First Quarter 11.30 8.54
  Second Quarter 11.76 9.37

122

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

Shares. As of March 31, 2017,2019, there were 492439 registered holders of H Shares.
ITEM 10    Additional Information
A.           
ITEM 10ADDITIONAL INFORMATION
A.Share capital
Not applicable.
B.           
B.Memorandum and articles of association
The following is a brief summary of certain provisions of our Articles of Association, as amended, the Company Law and certain other applicable laws and regulations of the PRC. Such summary does not purport to be

127
complete. For further information, you and your advisors should refer to the text of our Articles of Association, as amended, and to the texts of the applicable laws and regulations.
Objects and Purposes
We are a joint stock limited company established in accordance with the Standard Opinion for Joint Stock Limited Companies (the "Standard Opinion") and certain other relevant laws and regulations of the PRC. We are registered with the PRC State Administration for Industry and Commerce with business license number Qi Gu Guo Zi No. 000496. Article 10 of our Articles of Association provides that our scope of businesses includes, among other things, investment, construction, operation and management of power plants; development, investment and operation of other export-oriented enterprises related to power plants; production and sale of thermal heat and electricity.
Directors
Our directors shall be elected at our shareholders' general meeting. Because the shares do not have cumulative voting rights, a holder of a majority of the shares is able to elect all of the directors. Our directors shall be elected for a term of three years and may serve consecutive terms upon re-election, except that independent directors may only serve a maximum of two consecutive terms of six years. Our directors are not required to hold any shares in us, and there is no age limit requirement for the retirement or non-retirement of our directors.
Where a director is materially interested, directly or indirectly, in a contract, transaction or arrangement (including any proposed contract, transaction or arrangement) with us, he or she shall declare the nature and extent of his or her interests to the board of directors at the earliest opportunity, whether or not such contract, transaction or arrangement is otherwise subject to the approval of the board. A director shall not vote, and shall not be counted in the quorum of the meeting, on any resolution concerning any contract, transaction or arrangement where the director owns material rights or interests therein. A director is deemed to be interested in a contract, transaction or arrangement in which his associate (as defined by Article 133 of the Articles of Association) is interested.
123
Unless the interested director discloses his interests to the board and the contract, transaction or arrangement in which the director is materially interested is approved by the board at a meeting in which the director neither votes nor is counted in the quorum, such contract, transaction or arrangement may be revoked by us except with respect to a bona fide party thereto who does not have notice of the director's interests.
We are prohibited from making loans or providing guarantees to our directors and their associates except where such loan or guarantee is made or provided under a service contract as approved by our shareholders at the shareholders' general meeting and to meet expenditure requirement incurred or to be incurred by the director for the purposes of the Company or for the purpose of enabling the director to perform his or her duties properly.
Matters relating to the remuneration of our directors shall be determined by the shareholders' general meeting.
Dividends
Distribution of dividends may be proposed by our board of directors for approval by an ordinary resolution of our shareholders at the shareholders' general meeting. The Articles of Association allows for cash dividends, stock dividends and combination of cash and stock dividends.
Dividends may only be distributed after allowance has been made for:


·●recovery of losses, if any;

·●allocations to the statutory surplus reserve fund; and

·●allocations to a discretionary surplus reserve fund.

128
The allocation to the statutory surplus reserve fund is 10% of our net income determined in accordance with the PRC accounting rules. Where the accumulated statutory surplus reserve fund has reached 50% or more of our registered capital, no allocation is needed.
The Articles of Association require that cash dividends and other distribution with respect of H Shares be declared in Renminbi and paid by the Company in U.S. dollars or Hong Kong dollar in terms of the H Shares listed on the Hong Kong Stock Exchange. The Articles of Association further stipulate that for dividends and other distributions paid in currencies other than Renminbi, we shall use an exchange rate equal to the median closing exchange rate of Renminbi for such currencies announced by the PBOC for two working days in the week preceding the date on which such dividends or other distributions are declared.
We will appoint receiving agents to receive, on behalf of the holders of H Shares, any dividend distributions and all other money owing by us in respect of such shares (Receiving Agents). The Receiving Agents will comply with the laws and regulations of the applicable stock exchanges on which our shares are listed. Any Receiving Agent appointed on behalf of the holders of H Shares listed on the Hong Kong Stock Exchange will be a company registered as a trust corporation under the Trustee Ordinance of Hong Kong.
Dividends payments may be subject to PRC withholding tax.
Voting Rights and Shareholders' Meetings
Our board of directors shall convene a shareholders' annual general meeting once every year and within six months from the end of the preceding financial year. Our board shall convene an extraordinary general meeting within two months after the occurrence of any one of the following events:

·●where the number of directors is less than the number required by the PRC Company Law or two-thirds of the number specified in our Articles of Association;
124


·●where our unrecovered losses reach one-third of the total amount of our share capital;

·●where shareholder(s) holding 10% or more of our issued shares so request(s);

·●whenever our board deems necessary or our supervisory committee so requests; or

·●other circumstances as provided in the Articles of Association.
Resolutions proposed by shareholder(s) holding 3% or more of the total number of voting shares shall be included in the agenda for the relevant annual general meeting if (i) they are submitted to the board of directors no later than 10 days before the annual general meeting is to be held and (ii) they are matters which fall within the scope of the functions and powers of shareholders' general meeting and have clear subject and concrete terms to be voted upon. The board of directors shall publish a supplementary notice of annual general meeting specifying the resolutions proposed to other shareholders. Upon publication of the supplementary notice, no alteration to the proposed resolutions or addition of other proposed resolutions will be accepted.
All shareholders' meetings must be convened by our board by written notice given to shareholders not less than 45 days before the meeting. Based on the written replies received by us 20 days before a shareholders' meeting, we shall calculate the number of voting shares represented by shareholders who have indicated that they intend to attend the meeting. When the number of voting shares represented by those shareholders amountamounts to more than one-half of our total voting shares, we shall convene the shareholders' general meeting. Otherwise, we shall, within five days before holding the shareholders' general meeting, inform the shareholders again of the motions to be considered and the date and venue of the meeting by way of a public announcement. After the announcement is made, the shareholders' meeting may be convened. The accidental omission by us to give notice of a meeting to, or the non-receipt of notice of a meeting by, a shareholder will not invalidate the proceedings at that shareholders' meeting.
Shareholders at meetings have the power, among other things, to examine and approve our profit distribution plans and plans to recover losses, the annual budget, an increase or reduction of registered share capital,

129
the reports of our board of directors and supervisory committee, the issuance of debentures, and the plans for merger, division, dissolution or liquidation; to elect or remove our directors and supervisors who are not elected as employees' representatives; and to review and amend our Articles of Association. In addition, the rights of a class of shareholders may not be modified or abrogated, unless approved by a special resolution of shareholders at a general shareholders' meeting and by a special resolution of shareholders of that class of shares at a separate meeting. Our Articles of Association enumerate, without limitation, certain amendments which would be deemed to be a modification or abrogation of the rights of a class of shareholders, including increasing or decreasing the number of shares of such class or the number of shares of a class with voting or distribution rights or privileges equal or superior to the shares of such class, removing or reducing rights to receive dividends in a particular currency, and creating shares with voting or distribution rights or privileges equal or superior to the shares of such class.
Each share is entitled to one vote on all such matters submitted to a vote of our shareholders at the shareholders' general meetings, except for meetings of a special class of shareholders where only holders of shares of the affected class are entitled to vote on the basis of one vote per share of the affected class.
Shareholders are entitled to attend and vote at meetings either in person or by proxy. Proxies must be in writing and deposited at our legal address, or such other place as is specified in the meeting notice, not less than 24 hours before the start of the meeting at which the proxy proposes to vote or the time appointed for the passing of the relevant resolution(s). When the instrument appointing a proxy is executed by the shareholder's attorney-in-fact, such proxy when deposited must be accompanied by a notary-certified copy of the relevant power of attorney or other authority under which the proxy was executed.
Except for those actions discussed below which require supermajority votes ("special resolutions"), resolutions of the shareholders are passed by a simple majority of the voting shares held by shareholders who are present in person or by proxy. Special resolutions must be passed by more than two-thirds of the voting shares held by shareholders who are present in person or by proxy.
125
The following decisions must be adopted by special resolution:

·●an increase or reduction of our registered share capital or the issuance of shares, including stock distributions, of any class, warrants and other similar securities;

·●issuance of debentures;

·●our division, merger, dissolution, liquidation and change of the legal form;

·●amendments to our Articles of Association;

·●acquisition or disposal of material assets or providing a guarantee in the amount exceeding 30% of our most recent audited total assets within one year;

·●adjustments to our profit distribution policy; and

·●any other matters our shareholders have resolved by way of an ordinary resolution at a general meeting to be of a nature which may have a material impact on us and should be adopted by special resolution.
In addition, amendments to the Articles of Association require the approval and consent of the relevant PRC authorities.
All other actions taken by the shareholders, including the appointment and removal of our directors and supervisors and the declaration of cash dividend payments, will be decided by an ordinary resolution of the shareholders.
Any shareholder resolution which is in violation of any laws or regulations of the PRC will be null and void.

130
Liquidation Rights
In the event of our liquidation, the ordinary shares held by overseas shareholders will rank pari passu with the ordinary shares held by the domestic shareholders, and any of our assets remaining after payments (in order of priority) of (a) the costs of liquidation (b) wages and social insurance fees payable to or for our employees for the past three years prior to the date of liquidation; (c) overdue taxes and tax surcharges, funds and other amounts payable pursuant to the applicable administrative regulations; and (d) bank loans, corporate bonds and other debts, will be divided among our shareholders in accordance with the class of shares and their proportional shareholdings.
Further Capital Call
Shareholders are not liable to make any further contribution to the share capital other than according to the terms, which were agreed to by the subscriber of the relevant shares at the time of subscription.
Increases in Share Capital and Preemptive Rights
The Articles of Association require the approval by a special resolution of the shareholders prior to authorizing, allotting, issuing or granting shares, securities convertible into shares or options, warrants or similar rights to subscribe for any shares or such convertible securities. New issues of shares must also be approved by the relevant PRC authorities.
Shareholders do not have preemptive rights with respect to new issues of shares of the Company.
126
Reduction of Share Capital and Purchase by Us of Our Shares and General Mandate to Repurchase Shares
We may reduce our registered share capital only upon obtaining the approval of the shareholders by a special resolution and, in certain circumstances, of relevant PRC authorities. The number of H Shares which may be purchased is subject to the Hong Kong Takeovers and Share Repurchase Codes.
Restrictions on Large or Controlling Shareholders
Our Articles of Association provide that, in addition to any obligation imposed by laws and administration regulations or required by the listing rules of the stock exchanges on which our shares are listed, a controlling shareholder shall not exercise his voting rights in a manner prejudicial to the interests of the shareholders generally or of some part of the shareholders:

·●to relieve a director or supervisor from his or her duty to act honestly in our best interests;

·●to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of our assets in any way, including, without limitation, opportunities which may benefit us; or

·●to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of the individual rights of other shareholders, including, without limitation, rights to distributions and voting rights (save according to a restructuring of our company which has been submitted for approval by the shareholders in a general meeting in accordance with our articles of association).
A controlling shareholder, however, will not be precluded by our Articles of Association or any laws and administrative regulations or the listing rules of the stock exchanges on which our shares are listed from voting on these matters.
A controlling shareholder is defined by our Articles of Association as a shareholder whose capital contribution represents 50% or more of the total capital of our Company, or a shareholder whose shares represent 50% or more of the total issued share capital of our Company, or a shareholder whose capital contribution or shares are less than 50% but obtains significant voting rights to influence the result of the shareholder's general meeting or the resolutions passed thereby.

131
Disclosure
The Listing Agreement imposes a requirement on us to keep the Hong Kong Stock Exchange, our shareholders and other holders of our listed securities informed as soon as reasonably practicable of any information relating to us and our subsidiaries, including information on any major new developments which are not public knowledge, which:

·●is necessary to enable them and the public to appraise the position of us and our subsidiaries;

·●is necessary to avoid the establishment of a false market in its securities; and

·●might be reasonably expected to materially affect market activity in and the price of its securities.
There are also requirements under the Listing Rules for us to obtain prior shareholders' approval and/or to disclose to shareholders details of certain acquisitions or disposals of assets and other transactions (including transactions with controlling shareholders).
Sources of Shareholders' Rights
The PRC's legal system is based on written statutes and is a system in which decided legal cases have little precedent value. Prior to the effectiveness of the Company Law, the PRC did not have a comprehensive body of laws governing joint stock limited companies. The rights and obligations of our shareholders are principally
127
contained in our constitutive documents and the Standard Opinion, under which we were established. In December 1993, the Standing Committee of the 8th National People's Congress adopted the PRC Company Law, which superseded the Standard Opinion. In accordance with Article 229 of the Company Law, we must comply with the relevant requirements of the Company Law within an unspecified time period. As a result, we amended our Articles of Association pursuant to the Company Law on June 6, 1995. On October 27, 2005, the Company Law was amended by the Standing Committee of the 10th National People's Congress, and came into force on January 1, 2006.
Currently, the primary sources of shareholder's rights are our Articles of Association, as amended, the PRC Company Law and the Listing Rules of the Hong Kong Stock Exchange, which, among other things, impose certain standards of conduct, fairness and disclosure on us, our directors and our controlling shareholders. To facilitate the offering and listing of shares of PRC companies overseas, and to regulate the behavior of companies whose shares are listed overseas, the State Council Securities Committee and the State Commission for Restructuring the Economic System issued on August 27, 1994 the Mandatory Provisions for Articles of Association of Company Listing Overseas (the "Mandatory Provisions"). These Mandatory Provisions become entrenched in that, once they are incorporated into the Articles of Association of a PRC Company, any amendment to those provisions will only become effective after approval by the State-owned Assets Supervision and Administration Commission of the State Council. The Listing Rules require a number of additional provisions to the Mandatory Provisions to be included in the Articles of Association of PRC companies listing H Shares on the Hong Kong Stock Exchange (the "Additional Provisions"). The Mandatory Provisions and the Additional Provisions have been incorporated into our Articles of Association.
In addition, upon the listing of and for so long as the H Shares are listed on the Hong Kong Stock Exchange, we are subject to the relevant ordinances, rules and regulations applicable to companies listed on the Hong Kong Stock Exchange, including the Listing Rules of the Hong Kong Stock Exchange, the Securities (Disclosure of Interests) Ordinance (the "SDI Ordinance"), the Securities (Insider Dealing) Ordinance and the Hong Kong Codes on Takeovers and Mergers and Share Repurchases (the "Hong Kong Takeovers and Repurchase Codes").
Enforceability of Shareholders' Rights
There has not been any public disclosure in relation to the enforcement by holders of H Shares of their rights under constitutive documents of joint stock limited companies or the Company Law or in the application or interpretation of the PRC or Hong Kong regulatory provisions applicable to the PRC joint stock limited companies.

132
The Company Law, as amended in October 2005 and effective in January 2006, has granted shareholders with the rights to bring derivative suits. Within the Company Law, shareholders holding more than 1 percent of the shares of the company for more than 180 consecutive days are entitled to request the supervisory committee (in terms of directors and senior management) or the board of directors (in terms of supervisors) to bring legal proceedings, or bring legal proceedings in their own name on behalf of the company where it is in emergency and the company will be subject to irreparable loss if not to do so, against directors, supervisors or senior management who fail to comply with the laws and regulations or the company's Articles of Association in the course of performing their duties and cause loss to the company;
Our Articles of Association provide that all differences or claims:
·
●between a holder of H Shares and us;
·
●between a holder of H Shares and any of our directors, supervisors, general managers or other senior officers; or
·
●between a holder of H Shares and a holder of domestic ordinary shares, arising from any provision of our Articles of Association, any right or obligation conferred or imposed by the Company Law or any other relevant law or administrative regulation which concerns our affairs
128
must, with certain exceptions, be referred to arbitration at either the China International Economic and Trade Arbitration Commission in the PRC or the Hong Kong International Arbitration Center. Our Articles of Association provide that such arbitration will be final and conclusive. In June 1999, an arrangement was made between the People's Courts of the PRC and the courts of Hong Kong to mutually enforce arbitration rewards rendered in the PRC and Hong Kong according to their respective laws. This new arrangement was approved by the Supreme Court of the PRC and the Hong Kong Legislative Council and became effective on February 1, 2000.
The holders of H Shares will not be able to bring actions on the basis of violations of the Listing Rules and must rely on the Hong Kong Stock Exchange to enforce its rules. The SDI Ordinance establishes certain obligations in relation to disclosure of shareholder's interests in Hong Kong listed companies, the violation of which is subject to prosecution by the Securities and Futures Commission of Hong Kong. The Hong Kong Takeovers and Repurchase Codes do not have the force of law and are the only standards of commercial conduct considered acceptable for takeover and merger transactions and share repurchases in Hong Kong as established by the Securities and Futures Commission and the securities and futures industry in Hong Kong.
We have appointed CT Corporation System, New York, as our agent to receive service of process with respect to any action brought against us in certain courts in New York under the United States federal and New York State's securities laws. However, as the PRC does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts within the United States, the United Kingdom, Japan or most other of the Organization for Economic Cooperation and Development countries, administrative actions brought by regulatory authorities, such as the Commission, and other actions which result in foreign court judgments, could (assuming such actions are not required by PRC law and the Articles of Association to be arbitrated) only be enforced in the PRC on a reciprocal basis or according to relevant international treaties to which China is a party if such judgments or rulings do not violate the basic principles of the law of the PRC or the sovereignty, security and public interest of the society of the PRC, as determined by a People's Court of the PRC which has the jurisdiction for recognition and enforcement of judgments. We have been advised by our PRC counsel, Haiwen & Partners, that there is uncertainty as to the enforceability in the PRC of actions to enforce judgments of United States courts arising out of or based on the ownership of H Shares or ADSs, including judgments arising out of or based on the civil liability provisions of United States federal or state securities laws.
Restrictions on Transferability and the Share Register
As provided in the Articles of Associations we may refuse to register a transfer of H Shares listed on Hong Kong Stock Exchange unless:
·
●a fee (for each instrument of transfer) of HK dollar 2.50, or any higher fee as agreed by the Hong Kong Stock Exchange, has been paid to us;

133
·
●the instrument of transfer only involves H Shares;
·
●the stamp duty chargeable on the instrument of transfer has been paid;
·
●the relevant share certificate and upon the reasonable request of the board of directors, any evidence in relation to the right of the transferor to transfer the shares have been submitted;
·
●if it is intended to transfer the shares to joint owners, then the maximum number of joint owners must not exceed four;
·
●we do not have any lien on the relevant shares.
We are required to maintain an original share register for holders of H Shares in Hong Kong and a copy of the register at our legal address. Shareholders have the right to inspect and, for a reasonable charge, to copy the share register. No transfers of ordinary shares shall be recorded in our share register within 20 days prior to the date
129
of a shareholders' general meeting or within 5 days prior to the record date established for the purpose of distributing a dividend.
We have appointed Hong Kong Registrars Limited to act as the registrar of our H Shares. This registrar maintains our register of holders of H Shares in Hong Kong and enters transfers of shares in such register upon the presentation of the documents described above.
C.           
C.Material contracts
See "Item 7. Major Shareholders and Related Party Transactions — B. Related Party Transactions" for certain arrangements we have entered into with HIPDC and Huaneng Group.
D.           
D.Exchange controls
The existing foreign exchange regulations have significantly reduced government foreign exchange controls for transactions under the current account, including trade and service related foreign exchange transactions and payment of dividends. We may undertake current account foreign exchange transactions without prior approval from the State Administration of Foreign Exchange or its local branch offices. The PRC Government has stated publicly that it intends to make the Renminbi freely convertible in the future. However, we cannot predict whether the PRC Government will continue its existing foreign exchange policy and when the PRC Government will allow free conversion of Renminbi to foreign currency.
Foreign exchange transactions under the capital account, under most circumstances, including principal payments in respect of foreign currency-denominated obligations, continue to be subject to significant foreign exchange controls and require the approval of the State Administration of Foreign Exchange or its local branch offices. These limitations could affect our ability to obtain foreign exchange through debt or equity financing, or to obtain foreign exchange for capital expenditures.

134
The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the PBOC. On July 21, 2005, the PRC government introduced a floating exchange rate system to allow the value of Renminbi to fluctuate within a regulated band based on market supply and demand and by reference to a basket of foreign currencies. Renminbi appreciated by more than 20% against the U.S. dollar between July 2005 and July 2008. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. On June 19, 2010, the PBOC decided to further promote the reform of the Renminbi exchange rate formation mechanism, and improve the flexibility of the Renminbi exchange rate. Since June 2010, Renminbi has regained steady appreciation against the U.S. dollar, which was reversed by slight depreciation of the Renminbi against the U.S. dollar at the turn to and early 2014. On March 15, 2014, the PBOC announced to further widen the Remninbi's daily trading band against the U.S. dollar from 1% to 2% on either side of the daily reference rate, allowing for greater fluctuations of the exchange rate. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future. There remains significant international pressure on the PRC Government to further liberalize its currency policy, which could result in further fluctuations in the value of the Renminbi against the U.S. dollar. However, there is no assurance that there will not be a devaluation of Renminbi in the future. If there is such a devaluation, our debt servicing cost will increase and the return to our overseas investors may decrease.
The following table sets forth information concerning exchange rates between the Renminbi and the U.S. dollar for the periods indicated:

  Noon Buying Rate 
Period End  
Average(1)
  High  Low 
  (RMB per US$1.00) 
2012  6.2301   6.2990   6.2221   6.3879 
2013  6.0537   6.1412   6.0537   6.2438 
2014  6.2046   6.1704   6.0402   6.2591 
2015  6.4778   6.2869   6.4896   6.1870 
2016  6.9430   6.6549   6.4480   6.9580 
130


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

Source: Federal Reserve Statistical Release, Board of Governors of the Federal Reserve System.
Note:
(1)E.Annual averages are calculated by using the average of the exchange rates on the last day of each month during the relevant year. Monthly averages are calculated by using the average of the daily rates during the relevant month.Taxation
E.             Taxation
The following is a summary of (i) certain tax consequences from acquiring, owning and disposing of the H Shares and ADSs based on tax laws of the PRC, the United States and the Income Tax Treaty between the PRC and the United States (the "Tax Treaty") as in effect on the date of this annual report, and is subject to changes in PRC or United States law, including changes that could have retroactive effect, and (ii) the principal PRC taxes to which we are subject. The following summary does not take into account or discuss the tax laws of any countries or regions other than the PRC and the United States, nor does it take into account the individual circumstances of an investor. This summary does not purport to be a complete technical analysis or examination of all potential tax effects relevant to an investment in the H Shares or ADSs and current and prospective investors in all jurisdictions of the H Shares or ADSs are advised to consult their tax advisors as to PRC, United States or other tax consequences of the purchase, ownership and disposition of the H Shares or ADSs. This summary also does not purport to be a complete technical analysis or examination of all potential PRC taxes that may be levied upon us.
PRC tax considerations
Tax on dividends
Individual investors
According to the current PRC tax regulations, dividends paid by PRC companies to individual investors are ordinarily subject to a PRC withholding tax levied at a flat rate of 20%. For a foreign individual who has no domicile or does not stay in the territory of China or who has no domicile but has stayed in the territory of China for less than one year, the receipt of dividends from a company in China is normally subject to a withholding tax of 20% unless reduced or exempted by applicable laws and tax treaties.
Enterprises
In accordance with the New Enterprise Income Tax Law that became effective on January 1, 2008, dividends derived from the revenues accumulated from January 1, 2008 and as amended on February 24, 2017 and paid by PRC companies to non-resident enterprises are generally subject to a PRC withholding tax levied at a rate of 10% unless exempted or reduced pursuant to an applicable double-taxation treaty or other exemptions. Dividends paid by PRC companies to resident enterprises, including enterprises established under the laws of non-PRC jurisdictions but whose "de facto management body" is located in the PRC, are not subject to any PRC withholding tax, unless the dividends are derived from the publicly traded shares which have not been held continuously by the resident enterprises for twelve months. According to the Notice on the Issues Concerning Withholding the Enterprise Income Tax on the Dividends Paid by Chinese Resident Enterprise to H Share Holders Which Are Overseas Non-resident Enterprises issued by the State Administration of Taxation on November 6, 2008, Chinese resident enterprises are required to withhold PRC enterprise income tax at the rate of 10% on dividends paid for 2008 and later years payable to their respective H Shares holders who are non-resident enterprises.

135
Capital gains tax on sales of shares
131
In accordance with the New Enterprise Income Tax Law, capital gains realized by foreign enterprises which are non-resident enterprises in China upon the sale of overseas shares are generally subject to a PRC withholding tax levied at a rate of 10%, unless exempted or reduced pursuant to an applicable double-taxation treaty or other exemptions. The capital gains realized by resident enterprises, including enterprises established under the laws of non-PRC jurisdictions but whose "de facto management body" is located in the PRC, upon the sales of overseas shares are subject to the PRC enterprise income tax.
Tax treaties
Non-PRC Investors residing in countries which have entered into double-taxation treaties with the PRC may be entitled to a reduction of the withholding tax imposed on the payment of dividends to such Foreign Holders of us. The PRC currently has double-taxation treaties with a number of countries, including Australia, Canada, France, Germany, Japan, Malaysia, the Netherlands, Singapore, the United Kingdom and the United States.
Stamp tax
Under the Provisional Regulations of The People's Republic of China Concerning Stamp Tax, which became effective in October 1988, PRC stamp tax should not be imposed on the transfer of H Shares or ADSs of PRC publicly traded companies.
Taxation of the Company
Income tax
Prior to January 1, 2008, according to the relevant income tax law, foreign invested enterprises were, in general, subject to a statutory income tax of 33% (30% enterprise income tax and 3% local income tax). If these enterprises are located in certain specified locations or cities, or are specifically approved by the State Administration of Taxation, a lower tax rate would be applied. Effective from January 1, 1999, in accordance with the practice notes on the PRC income tax laws applicable to foreign invested enterprises investing in energy and transportation infrastructure businesses, a reduced enterprise income tax rate of 15% (after the approval of State Administration of Taxation) was applicable across the country. We applied this rule to all of our wholly owned operating power plants after obtaining the approval of the State Administration of Taxation. In addition, certain power plants were exempted from the enterprise income tax for two years starting from the first profit-making year, after offsetting all tax losses carried forward from the previous years (at most of five years), followed by a 50% reduction of the applicable tax rate for the next three years. The statutory income tax was assessed individually based on each of their results of operations.
On March 16, 2007, the Enterprise Income Tax Law of PRC, or the New Enterprise Income Tax Law, was enacted, and became effective on January 1, 2008. The New Enterprise Income Tax Law imposes a uniform income tax rate of 25% for domestic enterprises and foreign invested enterprises. Therefore, our power plants that were subject to a 33% income tax rate prior to January 1, 2008 are subject to a lower tax rate of 25% starting on January 1, 2008. With regard to our power plants entitled to a reduced enterprise income tax rate of 15% prior to January 1, 2008, their effective tax rate is being gradually increased to 25% within a five-year transition period commencing on January 1, 2008. Accordingly, the effective tax rate of our wholly owned power plants will increase over time. In addition, although our power plants entitled to tax exemption and reduction under the income tax laws and regulations that are effective prior to the New Enterprise Income Tax Law will continue to enjoy such preferential treatments until the expiration of the same, newly established power plants will not be able to benefit from such tax incentives, unless they can satisfy specific qualifications, if any, provided by then effective laws and regulations on preferential tax treatment.
Pursuant to Measures for the Collection and Administration of Consolidated Payment of Enterprises Income Tax on Trans-Regional Operation, effective on January 1, 2013, the Company and its branches calculate and pay income tax on a combined basis according to relevant tax laws and regulations. The income tax of subsidiaries remains to be calculated individually based on their individual operating results.

132136
Value-added tax
Since January 1, 1994, the government has implemented a turnover tax system applicable to FIEs. Under the turnover tax provisions, we have to collect from our electricity customers and pay to the PRC tax authorities a value-added tax ("VAT") on our sales. The tax rate on sales of electricity by us is 17% of total sales. The amount of VAT payable by us is the VAT on sales reduced by the VAT paid by us on our purchases of coal, fuel and other inputs.
Effective from January 1, 2009, VAT payers are allowed to credit against output VAT in respect of input VAT on fixed assets purchased or self-manufactured based on the relevant VAT credit receipts in accordance with the revised VAT regulations and its implementation rules.
In addition, effective from August 1, 2012, according to the relevant regulations of Ministry of Finance of PRC and State Administration of Taxation, nine pilot regions including Shanghai, Beijing, Tianjin, Jiangsu Province, Anhui Province, Zhejiang Province, Fujian Province, Hubei Province and Guangdong Province have been under the pilot program for the transformation from Business Tax to VAT since January 1, 2012 and all other regions have been since August 1, 2013 for specified industry. The applicable tax rate of VAT for the Company and its subsidiaries in respect of the lease of tangible movable properties, transportation industry and other modern services industries are 17%, 11% and 6%, respectively.
On March 23, 2016, the Ministry of Finance of PRC and the State Administration of Taxation issued the Circular of Full Implementation of Business Tax to VAT Reform which confirms that business tax will be completely replaced by VAT from May 1, 2016. With effect from May 1, 2016, our income is only subject to VAT and not business tax.
United States federal income tax considerations
The following discussion is a summary of United States federal income tax considerations relating to the ownership and disposition of our H sharesShares or ADSs by a U.S. Holder (as defined below). This discussion is based upon existing United States federal income tax law, which is subject to differing interpretations or change, possibly with retroactive effect. This discussion does not address all aspects of United States federal income taxation which may be important to particular holders in light of their particular circumstances, such as holders subject to special tax rules including: banks or other financial institutions, insurance companies, broker-dealers, traders in securities that elect mark-to-market treatment, partnerships and their partners, regulated investment companies, real estate investment trusts, cooperatives, pension plans, tax-exempt organizations (including private foundations), holders who are not U.S. Holders, holders who own (directly, indirectly, or constructively) 10% or more of the voting power or value of our stock, holders that hold H sharesShares or ADSs as part of a straddle, hedge, conversion, constructive sale, or other integrated transaction for United States federal income tax purposes, holders required to accelerate the recognition of any item of gross income with respect to H Shares or ADSs as a result of such income being recognized on an applicable financial statement, holders who acquired their ADSs or H sharesShares pursuant to any employee share option or otherwise as compensation, or holders that have a functional currency other than the United States dollar, all of whom may be subject to tax rules that differ significantly from those summarized below. In addition, this discussion does not address any state, local, non-United States, non-income tax (such as the United States federal gift and estate tax), or alternative minimum tax considerations or the Medicare tax. This discussion only addresses holders that hold their H sharesShares or ADSs as "capital assets" (generally, property held for investment) under the United States Internal Revenue Code of 1986, as amended (the "Code"). U.S. Holders are urged to consult their tax advisors regarding the United States federal, state, local, and non-United States income and other tax considerations relating to the ownership and disposition of our H sharesShares or ADSs.
For purposes of this summary, a U.S. Holder is a beneficial owner of H sharesShares or ADSs that is, for United States federal income tax purposes:
·
●an individual who is a citizen or resident of the United States;
·
●a corporation (or other entity treated as a corporation for United States federal income tax purposes) created in or organized under the laws of the United States or any State thereof or the District of Columbia;
133
·
●an estate the income of which is includible in gross income for United States federal income tax purposes regardless of its source; or

137
·
●a trust (a) the administration of which is subject to the primary supervision of a United States court and which has one or more United States persons who have the authority to control all substantial decisions of the trust or (b) a trust that has otherwise elected to be treated as a United States person under the Code.
If a partnership (including any entity treated as a partnership for United States federal income tax purposes) is a beneficial owner of H sharesShares or ADSs, the tax treatment of a partner in such partnership will depend upon the status of the partner and the activities of the partnership. Partnerships and partners of a partnership holding our H sharesShares or ADSs are urged to consult their tax advisors regarding the United States federal income tax considerations relating to the ownership and disposition of our H sharesShares or ADSs.
For United States federal income tax purposes, it is generally expected that a U.S. Holder of ADSs will be treated as the beneficial owner of the underlying shares represented by the ADSs. The remainder of this discussion assumes that a holder of ADSs will be treated in this manner. Accordingly, deposits or withdrawals of H sharesShares for ADSs will generally not be subject to United States federal income tax.
Passive Foreign Investment Company Considerations
A non-United States corporation, such as our Company, will be a "passive foreign investment Company"company" (a "PFIC"), for United States federal income tax purposes for any taxable year, if either (a) 75% or more of its gross income for such year consists of certain types of "passive" income or (b) 50% or more of its average quarterly assets as generally determined on the basis of fair market value during such year produce or are held for the production of passive income. For this purpose, cash and assets readily convertible into cash are categorized as passive assets and the Company's unbooked intangibles are taken into account for determining the value of its assets. We will be treated as owning a proportionate share of the assets and earning a proportionate share of the income of any other corporation in which we own, directly or indirectly, 25% or more than 25% (by value) of the stock.
We do not believe that we were classified as a PFIC for the taxable year ended December 31, 2016.2018. The determination of whether we will be or become a PFIC will depend, in part, upon the composition of our income and our assets (which are subject to change from year to year) and the market price of our ADSs (of which we cannot control). Although we do not expect that our business plans will change in a manner that will affect our PFIC status, no assurance can be given in this regard. Because there are uncertainties in the application of the relevant rules and PFIC status is a fact-intensive determination made on an annual basis, no assurance may be given with respect to our PFIC status for any taxable year.
The discussion below under "Dividends" and "Sale or Other Disposition"Disposition of H sharesShares or ADSsADSs" assumes that we will not be classified as a PFIC for United States federal income tax purposes. See the discussion below under the heading "Passive Foreign Investment Company Rules" for a brief summary of the PFIC rules.
Dividends
The gross amount of any cash distributions (including the amount of any tax withheld) paid on our H sharesShares or ADSs out of our current or accumulated earnings and profits, as determined under United States federal income tax principles, will be subject to tax as dividend income on the day actually or constructively received by a U.S. Holder, in the case of H shares,Shares, or by the depositary bank, in the case of ADSs. Because we do not intend to determine our earnings and profits on the basis of United States federal income tax principles, any distribution paid will generally be reported as a "dividend" for United States federal income tax purposes. A non-corporate recipient of dividend income will generally be subject to tax on dividend income from a "qualified foreign corporation" at a reduced capital gains rate rather than the marginal tax rates generally applicable to ordinary income provided that certain holding period requirements are met.
134
A non-U.S. corporation (other than a corporation that is classified as a PFIC for the taxable year in which the dividend is paid or the preceding taxable year) generally will be considered to be a qualified foreign corporation (i) if it is eligible for the benefits of a comprehensive tax treaty with the United States which the Secretary of Treasury of the United States determines is satisfactory for purposes of this provision and which includes an exchange of information program or (ii) with respect to any dividend it pays on stock which is readily tradable on an established securities market in the United States. There is currently a tax treaty in effect between the United States and the People's Republic of China (the "U.S.-PRC Treaty") which the Secretary of Treasury of the United States

138
determined is satisfactory for these purposes and we believe that we are eligible for the benefits of such treaty. Additionally, our ADSs (but not our H shares)Shares) trade on the New York Stock Exchange, an established securities market in the United States and the ADSs are expected to be readily tradable for so long as they continue to be listed on the New York Stock Exchange. Thus, while we presently believe that we are a qualified foreign corporation for purposes of the reduced treatytax rate, there can be no assurance that the dividends we pay on our H sharesShares or ADSs will meet the conditions required for the reduced tax rate in the current taxable year or future taxable years. Dividends received on H sharesShares or ADSs will not be eligible for the dividends received deduction allowed to corporations. U.S. Holders are urged to consult their tax advisors regarding the rate of tax that will apply to them with respect to dividends (if any) received from U.S.
Dividends paid in non-United States currency will be includible in income in a United States dollar amount based on the exchange rate prevailing at the time of receipt of such dividends by the depositary, in the case of ADSs, or by the U.S. Holder, in the case of H sharesShares held directly by such U.S. Holder, regardless of whether the non-United States currency is actually converted into United States dollars at that time. Gain or loss, if any, recognized on a subsequent sale, conversion or other disposition of the non-United States currency will generally be United States source income or loss.
Dividends received on H sharesShares or ADSs will generally be treated, for United States foreign tax credit purposes, as foreign source income and generally will constitute passive category income. A U.S. Holder may be eligible, subject to a number of complex limitations, to claim a foreign tax credit in respect of any non-United States withholding taxes imposed on dividends received on H sharesShares or ADSs. U.S. Holders who do not elect to claim a foreign tax credit for foreign income tax withheld may instead claim a deduction, for United States federal income tax purposes, in respect of such withholdings, but only for a year in which the U.S. Holder elects to do so for all creditable foreign income taxes. U.S. Holders are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.
Sale or Other Disposition of H sharesShares or ADSs
A U.S. Holder will generally recognize capital gain or loss upon the sale or other disposition of H sharesShares or ADSs in an amount equal to the difference between the amount realized upon the disposition and the U.S. Holder's adjusted tax basis in such H sharesShares or ADSs. Any capital gain or loss will be long-term if the H sharesShares or ADSs have been held for more than one year and will generally be United States source gain or loss for United States foreign tax credit purposes. If any PRC tax were to be imposed on any gain from the disposition of H sharesShares or ADSs, betweenhowever, a U.S. Holder that is eligible for the benefits of the U.S.PRCU.S.-PRC Treaty may elect to treat the gain as non-United States source gain or loss. The deductibility of a capital loss may be subject to limitations. The rules governing the foreign tax credit are complex and their outcome depends in large part on the U.S. Holder's individual facts and circumstances. Accordingly, U.S. Holders are urgedshould to consult their tax advisors regarding the tax credit purposes if a non-U.S. withholding tax is imposed on a disposition of our H shares or ADSs, including the availability of the foreign tax credit under their particular circumstances.
U.S. Holders that receive currency other than the United States dollar upon the sale or other disposition of H sharesShares will realize an amount equal to the United States dollar value of the non-United States currency on the date of such sale or other disposition, or if the shares are traded on an established securities market, in the case of cash basis and electing accrual basis taxpayers, the settlement date. U.S. Holders will recognize currency gain or loss if the United States dollar value of the currency received on the settlement date differs from the amount realized. U.S. Holders will have a tax basis in the currency received equal to the United States dollar amount at the spot rate on the settlement date. Generally, any gain or loss realized by U.S. Holders on a subsequent conversion or disposition of such currency will be United States source ordinary income or loss.
135
Passive Foreign Investment Company Rules
If we were to be classified as a PFIC in any taxable year, a special tax regime will apply to both (a) any "excess distribution" by us to a U.S. Holder (generally, the U.S. Holder's ratable portion of distributions in any year which are greater than 125% of the average annual distribution received by such U.S. Holder in the shorter of the three preceding years or the U.S. Holder's holding period for our H sharesShares or ADSs) and (b) any gain realized on the sale or other disposition of the H sharesShares or ADSs. Under this regime, any excess distribution and realized gain will be treated as ordinary income and will be subject to tax as if (a) the excess distribution or gain had been realized ratably over the U.S. Holder's holding period, (b) the amount deemed realized in each year had been subject to tax in

139
each year of that holding period at the highest marginal rate for such year (other than income allocated to the current period or any taxable period before we became a PFIC, which would be subject to tax at the U.S. Holder's regular ordinary income rate for the current year and would not be subject to the interest charge discussed below), and (c) the interest charge generally applicable to underpayments of tax had been imposed on the taxes deemed to have been payable in those years. In addition, dividends made to a U.S. Holder will not qualify for the lower rates of taxation applicable to long-term capital gains discussed above under "Dividends"."Dividends."
The above results may be eliminated if a "mark-to-market" election is available and a U.S. Holder validly makes such an election. If the election is made, such holder generally will be required to take into account the difference, if any, between the fair market value and its adjusted tax basis in H sharesShares or ADSs at the end of each taxable year as ordinary income or ordinary loss (to the extent of any net mark-to-market gain previously included in income). In addition, any gain from a sale or other disposition of H sharesShares or ADSs will be treated as ordinary income, and any loss will be treated as ordinary loss (to the extent of any net mark-to-market gain previously included in income).
We do not intend to provide information necessary for U.S. Holders to make qualified electing fund elections, which, if available, would result in tax treatment different from (and generally less adverse than) the general tax treatment for PFICs described above.
As discussed above under "Dividends","Dividends," dividends that we pay on the ADSs or our H sharesShares will not be eligible for the reduced tax rate that applies to qualified dividend income if we are a PFIC for the taxable year in which the dividend is paid or the preceding taxable year. In addition, if a U.S. Holder owns the ADSs or our H sharesShares during any taxable year that we are a PFIC, such holder would generally be required to file an annual IRS Form 8621. Each U.S. Holder is advised to consult its tax advisors regarding the potential tax consequences to such holder if we are or become a PFIC, including the possibility of making a mark-to-market election.
Information Reporting
U.S. Holders may be subject to information reporting to the United States Internal Revenue Service with respect to dividends on and proceeds from the sale or other disposition of our H sharesShares or ADSs. U.S. Holders are urged to consult their tax advisors regarding the application of the United States information reporting and backup rules to their particular circumstances.
Certain U.S. Holders who hold "specified foreign financial assets",assets," including stock of a non-U.S. corporation that is not held in an account maintained by a U.S. "financial institution",institution," whose aggregate value exceeds $50,000 during the tax year, may be required to attach to their tax returns for the year certain specified information. An individual who fails to timely furnish the required information may be subject to a penalty. U.S. Holders are urged to consult their tax advisors regarding their reporting obligations under this legislation.
F.             Dividends and paying agents
Not applicable.
G.            Statement by experts
F.Dividends and paying agents
Not applicable.
136
H.           
G.Statement by experts
Not applicable.
H.Documents on display
We are subject to the information reporting requirements of the Securities Exchange Act of 1934 (the "Exchange Act") and, in accordance with the Act, file certain reports and other information with the SEC. You may read and copy any report, statement or other information filed by us at the SEC's public reference rooms in Washington, D.C., New York and Chicago, Illinois. Please call the SEC at 1-800-0330 for further information on the public reference rooms. Our reports and other information filed with the SEC are also available to the public from commercial document retrieval services and the website maintained by the SEC at http://www.sec.gov.
I.             

140
I.Subsidiary information
Not applicable.
ITEM 11    Quantitative and Qualitative Disclosures About Market Risk
ITEM 11QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our primary market risk exposures are fluctuations of fuel prices, foreign exchange rates and interest rates.
Equity price risk
The available-for-sale financial assets of the Company and its subsidiaries are exposed to equity security price risk.
Detailed information relating to the available-for-sale financial assets is disclosed in Note 10 to the financial statements. The Company has a supervisor in the supervisory committee of the most significant investment in available-for-sale financial assets (China Yangtze Power Co., Ltd.) and may exercise protective rights. The Company also closely monitors the pricing trends in the open market in determining its long-term strategic stakeholding decisions.
The Company and its subsidiaries are exposed to fuel price risk on fuel purchases. In particular, SinoSing Power and its subsidiaries use fuel oil swap to hedge against such a risk and designate them as cash flow hedges. Please refer to Note 14 to the financial statements for details.
Foreign exchange rate risk
The exchange rate of Renminbi to foreign currencies may fluctuate and is affected by, among other things, changes in China's political and economic conditions. The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the PBOC. On July 21, 2005, the PRC government introduced a floating exchange rate system to allow the value of Renminbi to fluctuate within a regulated band based on market supply and demand and by reference to a basket of foreign currencies. Renminbi appreciated by more than 20% against the U.S. dollar between July 2005 and July 2008. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. On June 19, 2010, the PBOC decided to further promote the reform of the Renminbi exchange rate formation mechanism, and improve the flexibility of the Renminbi exchange rate. Since June 2010, the Renminbi has regained steady appreciation against the U.S. dollar, which was reversed by a slight depreciation of Renminbi against the U.S. dollar at the turn to and early 2014. On March 15, 2014, the PBOC announced to further widen the Remninbi's daily trading band against the U.S. dollar from 1% to 2% on either side of the daily reference rate, allowing for greater fluctuations of the exchange rate. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future. There remains significant international pressure on the PRC Government to further liberalize its currency policy. We cannot assure you that any future movements in the exchange rate of the Renminbi against the U.S. dollar and other currencies will not adversely affect our results of operations and financial conditions.
SinoSing Power and its subsidiaries are exposed to foreign exchange risk on fuel purchases that is denominated primarily in U.S. dollars. They use forward exchange contracts to hedge almost all of their estimated
137
foreign exchange exposure in respect of forecast fuel purchases over the following three months. The Company and its subsidiaries account for their forward foreign currency contracts as cash flow hedges.
The following table provides information, by maturity date, regarding our foreign currency sensitive financial instruments, which consist of bank balances and cash, short-term and long-term debt obligations, capital commitments and forward exchange contracts as of December 31, 20162018 and average interest rates for the year ended December 31, 2016.2018.
(RMB expressed in millions, except interest rate and exchange rate)
  As of December 31, 2016 
  Expected Maturity Date  Total  Fair Value 
  2017  2018  2019  2020  2021  Thereafter       
On-balance sheet financial instruments                        
Bank balances and cash:                        
In U.S. Dollar  320   -   -   -   -   -   320   320 
In Japanese Yen  0.184   -   -   -   -   -   0.184   0.184 
                                 
Debts                                
Japanese Yen  7   7   7   7   7   128   163   105 
Average interest rate  0.750   0.750   0.750   0.750   0.750   0.750   —   — 
Euro  68   68   40   32   32   46   286   230 
Average interest rate  2.085   2.085   2.040   2.013   2.010   2.007   —   — 
                                 
U.S. Dollar  389   389   389   389   389   898   2,843   2,843 
Average interest rate  1.920   1.920   1.920   1.920   1.920   1.920   —   — 
                                 
Gas purchase commitments (U.S. Dollar)  5,703   5,703   5,703   5,718   5,703   17,776   46,305     

  As of December 31, 2016 
  Expected Maturity Date  Total  Fair Value 
  2017  2018  2019  2020  2021  Thereafter       
Forward exchange contracts                        
(Receive US $ / Pay S$)                        
Contract amount  1,884   498   155   1   -   -   2,538   107 
Average Contractual Exchange Rate  1.39   1.39   1.39   1.37   -   -   —   — 
141

 As of December 31, 2015  As of December 31, 2018 
 Expected Maturity Date  Total  Fair Value  Expected Maturity Date   Total   Fair Value 
 2016  2017  2018  2019  2029  Thereafter        2019  2020  2021  2022  2023  Thereafter  
  
 
On-balance sheet financial instruments                                                
Bank balances and cash:                                                
In U.S.Dollar  560   -   -   -   -   -   560   560 
In U.S. Dollar  483   -   -   -   -   -   483   483 
In Japanese Yen  0.205   -   -   -   -   -   0.205   0.205   0.197   -   -   -   -   -   0.197   0.197 
In Hong Kong Dollar  0.128   -   -   -   -   -   0.128   0.128 
In Pakistan Rupee  33   -   -   -   -   -   33   33 
                                                                
Debts                                                                
Japanese Yen  6   6   6   6   6   122   152   81   7   7   7   7   7   119   154   100 
Average interest rate  0.750   0.750   0.750   0.750   0.750   0.750   —   —   0.750   0.750   0.750   0.750   0.750   0.750   —   — 
                                
Euro  66   66   60   42   32   78   344   288   48   36   35   33   17   2   171   159 
Average interest rate  2.085   2.085   2.079   2.048   2.014   2.013   —   —   2.050   2.103   2.106   2.142   2.135   2.000   —   — 
                                                                
U.S. Dollar  389   389   389   389   389   1,125   3,070   3,070   2,149   1,037   1,066   1,099   916   5,597   11,864   11,864 
Average interest rate  1.380   1.380   1.380   1.380   1.380   1.380   —   —   4.142   4.976   5.038   5.106   5.980   7.292   —   — 
                                                                
Pakistan Rupee
  322   -   -   -   -   -   322   322 
Average interest rate  11.510   -   -   -   -   -   —   — 
Gas purchase commitments (U.S. Dollar)  3,579   3,621   3,621   3,621��  3,631   14,502   32,575   32,575   6,602   6,718   6,699   6,727   2,439   8,148   37,333     

 As of December 31, 2015  As of December 31, 2018 
 Expected Maturity Date  Total  Fair Value  Expected Maturity Date   Total  Fair Value
 
 2016  2017  2018  2019  2020  Thereafter        2019  2020  2021  2022  2023  Thereafter  
  
 
Forward exchange contracts                                                
(Receive US$/Pay S$)                        
(Receive US $ / Pay S$)                        
Contract amount  2,105   528   140   27   -   -   2,800   139   2,596   459   91   18   -   -   3,164   (12)
Average Contractual Exchange Rate  1.36   1.34   1.37   1.39   -   -   —   —   1.35   1.35   1.33   1.33   -   -   —   — 
                                
(Receive JPY ￥ / Pay S$)
                                
Contract amount  45   -   -   -   -   -   45   - 
Average Contractual Exchange Rate  0.01   -   -   -   -   -   —   — 

  As of December 31, 2017 
  Expected Maturity Date   Total   Fair Value 
  2018  2019  2020  2021  2022  Thereafter  
  
 
On-balance sheet financial instruments                        
Bank balances and cash:                        
In U.S. Dollar            316   -   -   -   -   -   316   316 
In Japanese Yen  0.193   -   -   -   -   -   0.193   0.193 
                                 
Debts                                
Japanese Yen            6   6   6   6   6   118   148   95 
Average interest rate  0.750   0.750   0.750   0.750   0.750   0.750   —   — 
Euro            66   46   35   34   33   19   233   215 
Average interest rate  2.079   2.048   2.014   2.010   2.008   2.026   —   — 
                                 
U.S. Dollar            418   412   412   412   412   206   2,272   2,272 
Average interest rate  1.748   1.740   1.740   1.740   1.740   1.740   —   — 
Gas purchase commitments (U.S. Dollar)  5,943   5,943   5,934   5,918   6,065   12,343   42,146     


138142

  As of December 31, 2017 
  Expected Maturity Date   Total   Fair Value 
  2018  2019  2020  2021  2022  Thereafter  
  
 
Forward exchange contracts                        
(Receive US $ / Pay S$)                        
Contract amount  2,083   391   84   9   -   -   2,567   (68)
Average Contractual Exchange Rate  1.38   1.38   1.32   -   -   1.37   —   — 

The outstanding balance of the Company's loans denominated in foreign currencies has changed continually as a result of repayments of the loans by the Company according to agreed-upon repayment schedules. The loans denominated in U.S. dollars decreasedincreased from RMB3.07RMB2.272 billion as of December 31, 20152017 to RMB2.84RMB11.864 billion as of December 31, 2016.2018. The loans denominated in Euros decreased from RMB344RMB233 million as of December 31, 20152017 to RMB286RMB171 million as of December 31, 2016.2018.
Interest rate risk
We are exposed to interest rate risk primarily resulting from fluctuations in interest rates on our debts. Upward fluctuations in interest rates increase the cost of new variable rate debts and the interest cost of outstanding floating rate borrowings.
At present, the interest rate of the Company's loans denominated in RMB is subject to the change of the benchmark interest rate published and adjusted by the PBOC. Different interest rate levels correspond to loans with different terms. New loan contracts entered into hereafter will be subject to current benchmark interest rates. A portion of the Company's loans denominated in foreign currency are fixed rate loans, which are not subject to the changes in market interest rates. Due to the loans borrowed in relation to the acquisition of SinoSing Power, the portion of the loans denominated in foreign currency with floating interest rates increased, which subjects the finance cost of the Company to the fluctuation of market interest rates. In 2009, the Company entered into a floating-to-fixed interest rate swap agreement to hedge against the cash flow interest rate risk of part of the loan. According to the interest rate swap agreement, the Company agrees with the counterparty to settle the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amounts quarterly until 2019. The notional amount of the outstanding interest rate swap at December 31, 20162018 was US$208144 million.
In 2009, Tuas Power completed its refinancing, through which all of its outstanding loans denominated in U.S. dollars were refinanced through loans denominated in Singapore dollars, matching the functional currency of its operation. The loans borrowed by Tuas Power were denominated in Singapore dollars, and the majority of them are with floating interest rates, which subjects the finance cost of the Company to the fluctuation of market interest rates. In 2012 and 2013, TPG also entered into a number of floating-to-fixed interest rate swap agreements to hedge against the cash flow interest rate risk of the loan. According to these interest rate swap agreements, TPG agrees with the counterparty to settle the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amount semi-annually until 2020. The notional amount of the outstanding interest rate swap at December 31, 20162018 was US$1,358.8S$992 million.
The table below provides information about the Company and its subsidiaries' derivative financial instruments and other financial instruments that are sensitive to changes in interest rates, including interest rate swaps and debt obligations. For debt obligations, the table presents principal cash flows and related weighted average interest rates by expected maturity dates. For interest rate swaps, the table presents notional amounts and weighted average interest rates by expected (contractual) maturity dates. Notional amounts are used to calculate the contractual payments to be exchanged under the contract. Weighted average variable rates are based on implied forward rates in the yield curve at the reporting date.

143
(RMB expressed in millions, except interest rates)
 As of December 31, 2016  As of December 31, 2018 
 Expected Maturity Date     Fair  Expected Maturity Date   Total  Fair Value
 
 2017  2018  2019  2020  2021  Thereafter  Total  Value  2019  2020  2021  2022  2023  Thereafter  
  
 
Debts                                                
Shareholder's, bank and other loans  67,230   12,136   12,034   8,698   7,851   24,271   132,220   132,144   81,660   28,701   34,583   14,914   11,313   40,037   211,208   210,800 
Average interest rate  3.550   3.404   3.157   2.951   2.725   2.725   —   —   4.594   4.611   4.672   4.726   4.789   4.789   —   — 
                                                                
Short-term bonds  27,311   -   -   -   -   -   27,311   27,311   11,541   -   -   -   -   -   11,541   11,541 
Average interest rate  3.453   -   -   -   -   -   —   —   3.855   -   -   -   -   -   —   — 
                                                                
Long-term bonds  3,295   3,989   3,994   -   3,000   1,200   15,478   15,714   3,993   2,799   11,984   5,001   -   6,200   29,978   30,218 
Average interest rate  4.786   4.476   3.625   3.625   3.982   3.982   —   —   4.643   4.604   4.670   4.654   -
   4.654   —   — 


  As of December 31, 2018 
  Notional Amount Expected Maturity Date   Total   Fair Value 
  2019  2020  2021  2022  2023  Thereafter  
  
 
Debts                        
Interest Rate Derivatives (US$)                        
Variable to Fixed  988   -   -   -   -   -   988   (4)
Average receive rate  3.79%  -   -   -   -   -   —   — 
Average pay rate  4.40%  -   -   -   -   -   —   — 
                                 
Interest Rate Derivatives (S$)                                
Variable to Fixed  -   4,169   -   -   -   799   4,968   (145)
Average receive rate  -   1.93%  -   -   -   2.19%  —   — 
Average pay rate  -   2.485%  -   -   -   3.153%  —   — 
  As of December 31, 2017 
  Expected Maturity Date   Total
    Fair Value 
   2018   2019   2020   2021   2022  Thereafter  
  
 
Debts                                
Shareholder's, bank and other loans  98,349   20,729   19,906   16,683   12,656   37,058   205,381   205,256 
Average interest rate  3.960   3.850   3.743   3.643   3.525   3.525   —   — 
                                 
Short-term bonds  11,068   -   -   -   -   -   11,068   11,068 
Average interest rate  3.577   -   -   -   -   -   —   — 
                                 
Long-term bonds  3,997   3,994   2,800   3,000   5,000   1,200   19,991   19,811 
Average interest rate  4.629   4.381   4.204   4.553   4.553   3.982   —   — 


  As of December 31, 2017 
  Notional Amount Expected Maturity Date   Total   Fair Value 
  2018  2019  2020  2021  2022  Thereafter  
  
 
Debts                        
Interest Rate Derivatives (US$)                        
Variable to Fixed  209   941   -   -   -   -   1,150   (22)
Average receive rate  2.92%  3.38
%
  -
  -   -   -   —   — 
Average pay rate  4.40%  4.40%  -
  -   -   -   —   — 
                                 
Interest Rate Derivatives (S$)                                
Variable to Fixed  1,003   -   4,215   -   -   -   5,218   (108)
Average receive rate  1.08%  -   1.35%  -   -   -   —   — 
Average pay rate  2.289%  -   2.485%  -   -   -   —   — 


139144

  As of December 31, 2016 
  Notional Amount Expected Maturity Date     Fair 
  2017  2018  2019  2020  2021  Thereafter  Total  Value 
Debts                        
Interest Rate Derivatives (US$)                        
Variable to Fixed  222   222   999   -   -   -   1,443   (70)
Average receive rate  1.86%  2.34%  2.69%  -   -   -   —   — 
Average pay rate  4.40%  4.40%  4.40%  -   -   -   —   — 
                                 
Interest Rate Derivatives (S$)                                
Variable to Fixed  1,393   1,132   178   3,819   -   -   6,522   (99)
Average receive rate  1.04%  1.57%  1.78%  1.96%  -   -   —   — 
Average pay rate  2.468%  2.508%  2.531%  2.531%  -   -   —   — 

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

  As of December 31, 2015 
  Notional Amount Expected Maturity Date     Fair 
  2016  2017  2018  2019  2020  Thereafter  Total  Value 
Debts                        
Interest Rate Derivatives (US$)                        
Variable to Fixed  208   208   208   934   -   -   1,558   (80)
Average receive rate  1.89%  2.71%  3.14%  3.29%  -   -   —   — 
Average pay rate  4.40%  4.40%  4.40%  4.40%  -   -   —   — 
                                 
Interest Rate Derivatives (S$)                                
Variable to Fixed  188   1,331   1,082   170   3,650   -   6,421   (38)
Average receive rate  1.62%  1.84%  2.02%  2.22%  2.35%  -   —   — 
Average pay rate  2.452%  2.468%  2.508%  2.531%  2.531%  -   —   — 

As of December 31, 2016,2018, the Company's loans denominated in foreign currency amounted to RMB3,292RMB12,511 million, most of which waswere denominated in U.S. dollars. In addition, SinoSing Power's loans denominated in Singapore dollars amounted to RMB12,385RMB12,374 million as of December 31, 2016. The2018. Given the current market situation, it is less likely that the U.S. and other major economies would further increase interest rates due to expected slowdown of the global economy. As the debts denominated in other currencies represent a small percentage in our total debts, the change of interest rates of the loans denominated in U.S. dollars and Singapore dollarsforeign currencies are relatively low at the current market condition and it is not expected that a significant fluctuation would occur within the foreseeable period, thus it is not expected to cause anyhave material adverse effect on the finance cost ofCompany. We will closely watch the Company. The Company has paid special attention tochanges in domestic and overseas capital markets, and maintain its good reputation on the trend ofcapital markets, make reasonable financing arrangements, timely adjust our financing strategy, explore new financing methods, manage the international interestexchange rate market by keeping up with the market conditionsfluctuation risks, and predicting the future trend, and has made efforts to explore the feasibility of risk management by application of derivative financial instruments. The Company expects to implement the relevant plan according to its internal approval procedures and use interest rate swaps and other derivative financial instrumentsstrive to control its interest rate risk upon appropriate time.financing costs.
Commodity price risk
We are exposed to fuel price risk on fuel purchases. SinoSing Power and its subsidiaries use fuel oil swap to hedge against such risk. The table below provides information about the fuel swap contracts that are sensitive to
140
changes in fuel prices, including contract volumes, the weighted average contract prices, and the total contract amount by expected maturity dates.
(RMB expressed in millions, except interest rates and exchange rates)
  As of December 31, 2016 
  Expected Maturity Date     Fair 
  2017  2018  2019  2020  2021  Thereafter  Total  Value 
Fuel Swap contracts                        
Contract Volumes (MT)  715,675   241,015   74,050   -   -   -   1,030,740   — 
Weighted Average Prce (US$/MT)  312.03   298.48   305.44   -   -   -   —   — 
Contract Amount (RMB million)  1,551   500   156   -   -   -   2,207   103 
Contract Volumes (BBL)  78,960   -   -   -   -   -   78,960   — 
Weighted Average Price (US$/BBL)  51.63   -   -   -   -   -   —   — 
Contract Amount (RMB million)  28   -   -   -   -   -   28   2 
 As of December 31, 2015  As of December 31, 2018 
 Expected Maturity Date      Fair  Expected Maturity Date   Total   Fair Value 
  2016   2017   2018   2019   2020  Thereafter  Total  Value  2019  2020  2021  2022  2023  Thereafter  
  
 
Fuel Swap contracts                                                        
Contract Volumes (MT)  930,660   204,205   54,855   10,210   -   -   1,199,930   —   436,220   280,610   175,040   -   -   -   891,870   — 
Weighted Average Prce (US$/MT)  338.59   408.86   389.49   389.54   -   -   —   — 
Weighted Average Price (US$/MT)  384.88   345.70   350.38   -   -   -   —   — 
Contract Amount (RMB million)  2,044   541   139   26   -   -   2,750   (1,141)  1,147   663   419   -   -   -   2,229   (335)
Contract Volumes (BBL)  361,100   -   -   -   -   -   361,100   —   175,000   -   -   -   -   -   175,000   — 
Weighted Average Price (US$/BBL)  48.54   -   -   -   -   -   —   —   64.62   -   -   -   -   -   —   — 
Contract Amount (RMB million)  114   -   -   -   -   -   114   -   77   -   -   -   -   -   77   (14)
 As of December 31, 2017 
 Expected Maturity Date    Total    Fair Value 
  2018   2019   2020   2021   2022  Thereafter  
  
 
Fuel Swap contracts                                
Contract Volumes (MT)  423,136   340,395   141,740   20,160   -   -   925,431   — 
Weighted Average Price (US$/MT)  324.95   309.04   301.04   317.48   -   -   —   — 
Contract Amount (RMB million)  898   687   278   42   -   -   1,905   319 
Contract Volumes (BBL)  98,000   -   -   -   -   -   98,000   — 
Weighted Average Price (US$/BBL)  62.67   -   -   -   -   -   —   — 
Contract Amount (RMB million)  40   -   -   -   -   -   40   3 
For other detailed information of the market risk, please refer to the Note 3(a)(i) to the "Financial Statements".Statements."
ITEM 12    Description of Securities Other than Equity Securities

A.            145
ITEM 12DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
A.Debt Securities
Not applicable.
B.           
B.Warrants and Rights
Not applicable.
C.           
C.Other Securities
Not applicable.
D.            American Depositary Shares
D.American Depositary Shares
Depositary Fees and Charges
Under the terms of the Deposit Agreement for Huaneng Power International, Inc.'s American Depositary Shares (ADSs), an ADS holder may have to pay the following services fees to the Depositary:
Services Fees
Issuance of ADSs $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) issued
Cancellation of ADSs $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) canceled
Distribution of cash dividends or other cash distributions $2.00 (or less) per 100 ADSs (or portion of 100 ADSs) held

141

ServicesFees
Distribution of ADSs pursuant to stock dividends, free stock distributions or exercises of rights $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) held
Distribution of securities other than ADSs or rights to purchase additional ADSs $5.00 (or less) per 100 ADSs (or portion of 100 ADSs) held
An ADS holder will also be responsible to pay certain fees and expenses incurred by the Depositary and certain taxes and governmental charges such as:

·●taxes and other governmental charges;

·●such registration fees as may from time to time be in effect for the registration of transfers of H Shares generally on the H Share register of the Company or Foreign Registrar and applicable to transfers of H Shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals;

·●such cable, telex and facsimile transmission expenses as are expressly provided in the Deposit Agreement;

·●such expenses as are incurred by the Depositary in the conversion of foreign currency; and

·●any other charge payable by the Depositary, any of the Depositary's agents, including the Custodian, or the agents of the Depositary's agents in connection with the servicing of H Shares or other Deposited Securities.
Depositary Payments for the Year 20162018
In 2016,2018, we received the payment of US$129,108121,231.19 (inclusive of withholding tax) from the Bank of New York Mellon, the Depositary for our ADR program, for the reimbursement of our expenses related to investors' relation activities and training activities.

146
PART II
ITEM 13    Defaults, Dividend Arrearages and Delinquencies
ITEM 13DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
None.
ITEM 14    Material Modifications to the Rights of Security Holders and Use of Proceeds
ITEM 14MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
None.
ITEM 15    Controls and Procedures
ITEM 15CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of December 31, 20162018 (the "Evaluation Date"), the end of the fiscal year covered by this annual report. Based on this evaluation, our principal executive officer and principal financial officer have concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective.
Management's Report on Internal Control over Financial Reporting
OurAccording to Sarbanes-Oxley Act Section 404, our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f). The Company conducted an evaluation of the effectiveness of the design and implementation of our internal control over financial reporting based upon the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) as of the end of the period covered by this annual report. The evaluation is conducted
142
under the supervision and with the participation of our management including principal executive officer and principal financial officer of the Company. The Company acquired Shandong Huaneng Laizhou Wind Power, Shandong Huaneng Laiwu Thermal Power Co., Ltd., Shandong Huaneng Liaocheng Thermal Power Co., Ltd. and Huaneng Shandong Ruyi (Hong Kong) Energy Co., Ltd. (the “Acquired Companies”) during 2018, and the Company excluded from the evaluation of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018, the Acquired Companies’ internal control over financial reporting associated with total assets of RMB17,498 million and total revenues of RMB 743 million included in the consolidated financial statements of the Company as of and for the year ended December 31, 2018. Based on that evaluation, our management has concluded that our internal control over financial reporting was effective as of December 31, 2016.2018. The effectiveness of the Company's internal control over financial reporting as of December 31, 20162018 has been audited by KPMG Huazhen LLP, an independent registered public accounting firm, as stated in their report which appears herein.
Because of its inherent limitations, internal control over financial reporting may only provide reasonable assurance for preventing or detecting misstatements. In addition, projections of any evaluation of effectiveness of our internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.
Report of Independent Registered Public Accounting Firm
The
To the Shareholders and Board of Directors and Shareholders of
Huaneng Power International, Inc.:


Opinion on Internal Control Over Financial Reporting

We have audited Huaneng Power International, Inc.’s and subsidiaries’ (the “Company”)  internal control over financial reporting as of December 31, 2016,2018, based on criteria established in Internal Control – Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated statements of financial position of the Company as of December 31, 2018 and 2017, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes (collectively, the consolidated financial statements), and our report dated April 16, 2019 expressed an unqualified opinion on those consolidated financial statements.

The Company acquired Shandong Huaneng Laizhou Wind Power, Shandong Huaneng Laiwu Thermal Power Co., Ltd., Shandong Huaneng Liaocheng Thermal Power Co., Ltd. and Huaneng Shandong Ruyi (Hong Kong) Energy Co., Ltd. (the “Acquired Companies”) during 2018, and management excluded from its assessment of Huaneng Power International, Inc.the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018, the Acquired Companies’ internal control over financial reporting associated with total assets of RMB17,498 million and total revenues of RMB743 million included in the consolidated financial statements of the Company as of and for the year ended December 31, 2018. Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of the Acquired Companies.


147
Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting of Huaneng Power International, Inc. based on our audit.
We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

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


Definition and Limitations of Internal Control Over Financial Reporting

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


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

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

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statement of financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2016, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for the year then ended, and our report dated March 21, 2017 expressed an unqualified opinion on those consolidated financial statements.

/s/ KPMG Huazhen LLP


Beijing, China
March 21, 2017
April 16, 2019
143
Changes in Internal Control over Financial Reporting
During the year ended December 31, 2016,2018, no changes occurred in our internal controls over financial reporting that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.
ITEM 16    Reserved

ITEM 16A    Audit Committee Financial Expert148
ITEM 16RESERVED
ITEM 16AAUDIT COMMITTEE FINANCIAL EXPERT
The Board of Directors has determined that Mr. Yue Heng and Mr. Geng JianxinZhang Xianzhi qualify as Audit Committee Financial Experts in accordance with the terms of Item 16A of Form 20-F. See "Item 6 Directors, Senior Management and Employees – A. Directors, members of the supervisory committee and senior management".management."
ITEM 16B    Code of Ethics
ITEM 16BCODE OF ETHICS
Although, as of the date of this annual report, we do not have, in form, a code of ethics that applies to the Company's principal executive officer, principal financial officer and principal accounting officer (collectively, the "Senior Corporate Officers"), we believe that, as a substantive matter, the Senior Corporate Officers are subject to a set of written requirements under the PRC law that are substantially similar to the ethical standards described under Item 16B (b) of Form 20-F. Joint stock companies that are incorporated in China and listed on both PRC and foreign stock exchanges are heavily regulated by the central government. To a large extent, these requirements, which are designed to promote honest and ethical conduct and compliance with applicable laws and regulations by the directors and senior executives of such companies, are not merely ethical requirements, but more importantly, statutory obligations that are legally binding on these individuals under the PRC Company Law, relevant rules and regulations promulgated by China Securities Regulatory Commission and the Mandatory Provisions of Articles of Association of Overseas Listed Companies.
ITEM 16C    Principal Accountant Fees and Services
ITEM 16CPRINCIPAL ACCOUNTANT FEES AND SERVICES
KPMG Huazhen LLP and KPMG havehas served as our independent registered public accounting firm for the fiscal years ended December 31, 20162018 and 2015, respectively,2017, for which audited consolidated financial statements appear in this annual report on Form 20-F.
144
The following table shows information about fees payable by us to KPMG Huazhen LLP in 2018 and KPMG in 2016 and 2015,2017, respectively.
(RMB million) 
For the Year Ended
December 31,
  For the Year Ended December 31, 
 2016  2015  2018  2017 
Audit fees  30.2   29.2   45.5   42.8 
Audit-related fees  4.9   -   1.6
   2.4 
Tax fees  0.4   0.4   0.3
   0.4 
All other fees  2.8   0.7   1.9
   2.4 
Total  38.3   30.3   49.3   48.0 
Tax Fees
Services provided primarily consist of tax compliance services.
Audit-related Fees

Audit-related services include those other assurances and related services provided by auditors, but not restricted to those that can only reasonably be provided by the external auditors signing the auditors’auditors' report, that are reasonably related to the performance of the audit or review of the Company’sCompany's financial statements. The audit-related fees in 20162018 were related to acquisition audits.
All Other Fees
Provision of other assurance and advisorygeneral training service.
Audit Committee Pre-approval Policies and Procedures
The Audit Committee of the Company's Board of Directors is responsible, among other things, for the oversight of the external auditors subject to the requirements of the PRC Law and the Company's Articles of

149
Association. The Audit Committee has adopted a policy regarding pre-approval of audit and permissible non-audit services to be provided by our independent auditors (the "Policy"). Under the Policy, proposed services either (i) may be pre-approved by the Audit Committee without consideration of specific case-by-case services ("general pre-approval"); or (ii) require the specific pre-approval of the Audit Committee ("specific pre-approval"). General pre-approval applies to services of recurring and predictable nature. These types of services, once approved by the Audit Committee in the beginning, will not require further approval in the future, except when actual fees and expenses exceed pre-approved budget levels. In such a case, the Audit Committee may authorize one of its members to approve budget increases subject to the requirement that such member provideprovides a report on his decision to approve or deny an application for budget increases to the Audit Committee at an Audit Committee meeting held immediately after such member grants or denies the approval.
Specific pre-approval applies to all other services. These services must be approved by the Audit Committee on a case-by-case basis after an application including proposed budget and scope of services to be provided by our independent auditors is submitted to the Audit Committee.
For 2016,2018, all of the services provided by KPMG were pre-approved by the Audit Committee.
ITEM 16D    Exemptions from the Listing Standards for Audit Committees
ITEM 16DEXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Not applicable.
ITEM 16E    Purchases of Equity Security by the Issuer and Affiliated Purchasers
ITEM 16EPURCHASES OF EQUITY SECURITY BY THE ISSUER AND AFFILIATED PURCHASERS
Not applicable.
ITEM 16F    Change in Registrant's Certifying Accountant
ITEM 16FCHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
KPMG (the “Former Auditor”) was previously the principal accountants for our company.
On June 23, 2016, that firm was dismissed. With the approvals ofDecember 11, 2018, our board the audit committee and shareholders, we appointedof directors resolved to propose change in our independent registered public accounting firm, KPMG Huazhen LLP, after the completion of the audit of the December 31, 2018 consolidated financial statements and the audit of the effectiveness of internal control over financial reporting as of December 31, 2018, and the issuance of their reports thereon. The decision was later approved by our principal accountantsshareholders at 2019 first extraordinary general meeting on January 30, 2019. The proposed change of auditor was a commercial decision.

During the two most recent fiscal years and through April 16, 2019, there have been no disagreements with KPMG Huazhen LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements if not resolved to the satisfaction of KPMG Huazhen LLP, would have caused it to make reference thereto in their report on the consolidated financial statements for such years.

During the year 2016.


two most recent fiscal years and through April 16, 2019, there have been no “reportable events” (hereinafter defined) requiring disclosure pursuant to Item 16F(a)(1)(v) of Form 20-F. As used herein, the term “reportable event” means any of the items listed in paragraphs (a)(1)(v)(A)-(D) of Item 16F of Form 20-F.

The audit reports of the Former AuditorKPMG Huazhen LLP on the Company’s consolidated financial statements of Huaneng Power International, Inc. as of and for the years ended December 31, 20142017 and 20152018 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. During the two fiscal years ended December 31, 2015 and through June 23, 2016, there were no (i) disagreements with the Former Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with their opinion to the subject matter of the disagreement, or (ii) reportable events.

We provided a copy of the foregoingthis disclosure to the Former AuditorKPMG Huazhen LLP and requested the Former Auditorthat KPMG Huazhen LLP furnish a letter addressed to the SEC stating whether orit agrees with the above statements, and if not, stating the Former Auditor agreed with such disclosure.respects in which it does not agree. A copy of the letter from the Former AuditorKPMG Huazhen LLP addressed to the SEC, dated April 17, 2017, was16, 2019, is filed as Exhibit 15.1 hereto.15.1.

On December 11, 2018, our board of directors resolved, as recommended by our audit committee, to propose to appoint Ernst & Young Hua Ming LLP as our independent registered public accounting firm, which was later approved by our shareholders at 2019 first extraordinary general meeting on January 30, 2019. During the two most recent fiscal years and through April 16, 2019, neither we nor anyone on our behalf consulted Ernst & Young Hua Ming LLP regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on the registrant’s financial statements, or (ii) any matter that was either the subject of a “disagreement” (as defined in Item 16F(a)(1)(iv) of Form 20-F and related instructions to Item 16-F of Form 20-F) with Ernst & Young Hua Ming LLP or a “reportable event” (as described in Item 16F(a)(1)(v) of Form 20-F).  Also, during the two most recent fiscal years and through April 16, 2019, we have not obtained any written report or oral advice that Ernst & Young Hua Ming LLP concluded was an important factor considered by us in reaching a decision as to the accounting, auditing or financial reporting issue.

ITEM 16G    Corporate Governance
ITEM 16GCORPORATE GOVERNANCE
Comparison of New York Stock Exchange corporate governance rules and China corporate governance rules for listed companies: under the amended Corporate Governance Rules of New York Stock Exchange
145
("NYSE"), foreign issuers (including the Company) listed on the NYSE are required to disclose a summary of the significant differences between their domestic corporate governance rules and NYSE corporate governance rules that would apply to a U.S. domestic issuer. A summary of such differences is listed below:
NYSE corporate governance rules Corporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Director Independence 
   
A listed company must have a majority of independent directors on its board of directors.
 
No director qualifies as "independent" unless the board of directors affirmatively determines that the director has no material relationship with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with the company). In addition, a director must meet certain standards to be deemed independent. For example, a director is not independent if the director is, or has been within the last three years, an employee of the listed company, or an immediate family member is, or has been within the last three years, an executive officer of the listed company, or if the director has received, or has an immediate family member who has received, during any twelve-month period within the last three years, more than US$120,000 in direct compensation from the listed company, other than director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service).
 It is required in China that any domestically listed company must establish an independent director system and set forth specific requirements for the qualification of independent directors. For example, an independent director shall not hold any other position in the listed Company other than being a directormember of the special committee established by the board of directors and shall not be influenced by the main shareholders or the controlling persons of the listed company, or by any other entities or persons with whom the listed company has a significant relationship. The Company has complied with the relevant Chinese corporate governance rules and has implemented internal rules governing the independence and responsibilities of independent directors. The Company determines the independence of independent directors every year.


150

NYSE corporate governance rulesCorporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
an immediate family member who has received, during any twelve-month period within the last three years, more than US$120,000 in direct compensation from the listed company, other than director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service).
   
To empower non-management directors to serve as a more effective check on management, the non-management directors of each listed company must meet at regularly scheduled executive sessions without management. No similar requirements.
   
Nominating/Corporate Governance Committee  
   
Listed companies must have a nominating/corporate governance committee composed entirely of independent directors. The board of directors of a domestically listed company may through the resolution of the shareholders' meeting, establish a nominating committee composed entirely of directors, of which the independent directors shall be the majority and the convener. The Company has established a nominating committee.
   
The nominating/corporate governance committee must have a written charter that addresses the committee's purposes and responsibilities which, at minimum, must be to: search for eligible people for the board of directors, select and nominate directors for the next session of the shareholders' annual meeting, study and propose corporate governance guidelines, supervise the evaluation of the board of directors and management, and evaluate the performance of the committee every year. Relevant responsibilities of the nominating/corporate governance committee are similar to those stipulated by the NYSE rules, but the main responsibilities do not include the research and recommendation of corporate governance guidelines, the supervision of the evaluation of the board of directors and management, or the annual evaluation of the committee.
   

146

NYSE corporate governance rulesCorporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Compensation Committee  
   
Listed companies must have a compensation committee composed entirely of independent directors. The board of directors of a listed company can through the resolution of shareholders' meeting, have a compensation and evaluation committee composed entirely of directors, of whom the independent directors are the majority and act as the convener.
   
The compensation committee must have a written charter that addresses, at least, the following purposes and responsibilities: The responsibilities are similar to those stipulated by the NYSE rules, but the committee is not required to produce a report on the executive compensation or make an annual performance evaluation of the committee. The board of directors of the Company has established a compensation and evaluation committee composed mainly of independent directors who act as the convener, and the committee has a written charter.


151

NYSE corporate governance rules Corporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
(1)review and approve the corporate goals associated with CEO's compensation, evaluate the performance of the CEO in fulfilling these goals, and, either as a committee or together with the other independent directors (as directed by the board) based on such evaluation, determine and approve the CEO's compensation level;
  
   
(2)make recommendations to the board with respect to non-CEO executive officer compensation, and incentive-compensation and equity-based plans that are subject to board approval;
  
(3)produce a committee report on executive compensation as required by the SEC to be included in the annual proxy statement or annual report filed with the SEC.
  
   
The charter must also include the requirement for an annual performance evaluation of the compensation committee.  
   
The compensation committee may, in its sole discretion, retain or consult a compensation consultant, independent legal counsel or other advisor. The compensation committee shall be directly responsible for the appointment, compensation and oversight of the work of such advisor. A listed company must provide for appropriate funding for payment of reasonable compensation to such advisor. The compensation committee may select such advisor to the compensation committee only after taking into consideration all factors relevant to that person's independence from management.  
   

147

NYSE corporate governance rulesCorporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Audit Committee  
   
Listed companies must have an audit committee that satisfies the requirements of Rule 10A-3 of Exchange Act. It must have a minimum of three members, and all audit committee members must satisfy the requirements for independence set forth in Section 303A.02 of NYSE Corporate Governance Rules as well as the requirements of Rule 10A-3(b)(1) of the Exchange Act. The board of directors of a domestically listed company can, through the resolution of the shareholders' meeting,shall establish an audit committee composed entirely of directors, of which the independent directors are the majority and act as the convener, and at minimum, one independent director isthe convener shall be an accounting professional.
   
The audit committee must have a written charter that specifies the purpose of the audit committee is, at minimum, to assist the board oversight of the integrity of financial statements, the Company's compliance with legal and regulatory requirements, qualifications and independence of independent auditors and the performance of the listed company's internal audit function and independent auditors. The responsibilitiesboard of the audit committee are similardirectors of a domestically listed company needs to those stipulated by the NYSE rules, but according to the domestic practices, the Company is not required to make an annual performance evaluation ofestablish the audit committee and make a written rules of procedure. The domestically listed company shall disclose the audit committee is not required to prepare an audit report to be included in the Company's annual proxy statement. The Board of Directorscommittee's performance of the Company has established anduty along with the annual report, including the disclosure of all audit committee that satisfies relevant domestic requirements and the audit committee has a written charter.meetings.


152

NYSE corporate governance rules Corporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
The written charter must also require the audit committee to prepare an audit committee report as required by the SEC to be included in the listed company's annual proxy statement as well as an annual performance evaluation of the audit committee.  
   
The written charter must also specify the duties and responsibilities of the audit committee, which, at a minimum, must include those set out in Rules 10A-3(b)(2), (3), (4) and (5) of the Exchange Act, as well as other duties and responsibilities, such as to obtain and review a report by the independent auditor at least annually, meet to review and discuss the listed company's annual audited financial statements and quarterly financial statements with management and independent auditor.  
   
Each listed company must have an internal audit department. China has a similar regulatory provision, and the Company has an internal audit department.
   
Shareholder approval of equity compensation plan  
   
Shareholders must be given the opportunity to vote on all equity-compensation plans and material revisions thereto, except for, among others, plans that are made available to shareholders generally, such as typical dividend reinvestment plan, certain awards and plans in the context of mergers and acquisitions. 
The relevant regulations of China require the board of directors to propose plans on the amount and types of director compensation forprovide that the shareholders' meeting to approve.shall approve the compensation of the directors and supervisors. The compensation plan of executive officers is subject to approvalshall be approved by the board and announced at the shareholders' meeting and disclosed to the public upon the approval of the board of directors.public.
   
Corporate governance guidelines  
   
Listed companies must adopt and disclose corporate governance guidelines, involving director qualification standards, director responsibilities, director compensation, director continuing education, annual performance evaluation of the board of directors, etc.
 CSRC has issued the Corporate Governance Rules, providing specific rules regarding the process of director election, the duty of directors, the composition and duty of the board of directors and the rules of performance review, with which the Company has complied.
   

148

NYSE corporate governance rulesCorporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Code of ethics for directors, officers and employees  
   
Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers. Each code of business conduct and ethics must require that any waiver of the code for executive officers or directors may be made only by the board or a board committee. China does not have such requirement for a code forof ethics. But, the directors and officers must perform their legal responsibilities in accordance with the Company Law of PRC, relative requirements of CSRC and Mandatory Provisions to the Charter of Companies Listed Overseas.


153
NYSE corporate governance rules Corporate governance rules applicable to the domestically listed companies in China and the Company's governance practices
Each listed company's CEO must certify to the NYSE each year that he or she is not aware of any violation by the listed company of NYSE corporate governance listing standards and he or she must promptly notify the NYSE in writing of any non-compliance with any applicable provisions of Section 303A. No similar requirements.
ITEM 16H    Mine Safety Disclosure
ITEM 16HMINE SAFETY DISCLOSURE
Not applicable.
ITEM 17    Financial Statements
ITEM 17FINANCIAL STATEMENTS
Not applicable.
ITEM 18    Financial Statements
ITEM 18FINANCIAL STATEMENTS
See page F-1 through F-114F-144 following Item 19.
ITEM 19    Exhibits
1.1ITEM 19EXHIBITS
1.1*
3.1Shareholders’Shareholders' Agreement dated May 31, 1994, incorporated by reference to Exhibit 9.1 of our Registration Statement on Form F-1, filed with the SEC on August 24, 1994. Amendment to Shareholders’Shareholders' Agreement dated May 12, 2006, incoporatedincorporated by reference to Exhibit 3.1 of our annual report on Form 20-F for the year ended December 31, 2006, filed with the SEC on April 16, 2007.
88*
12.112.1*
12.212.2*
13.113.1**
101.SCH*XBRL Taxonomy Extension Schema Document.
101.CAL*XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE*XBRL Taxonomy Extension Presentation Linkbase Document.
_____________________________
*Filed herewith
**Furnished herewith


149154






THIS PAGE IS INTENTIONALLY LEFT BLANK







150155

Report of Independent Registered Public Accounting Firm


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

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statementstatements of financial position of Huaneng Power International, Inc. and its subsidiaries (the “Company”) as of December 31, 2016,2018 and 2017, the related consolidated statements of comprehensive income, changes in equity, and cash flows for the year then ended. These consolidated financial statements are the responsibilityeach of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresyears in the three-year period ended December 31, 2018, and the related notes (collectively, the “consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Huaneng Power International, Inc. and its subsidiariesthe Company as of December 31, 2016,2018 and 2017, and the results of theirits operations and theirits cash flows for each of the year thenyears in the three-year ended December 31, 2018, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company's internal control over financial reporting of Huaneng Power International, Inc. as of December 31, 2016,2018, based on criteria established inInternal Control – Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission, (COSO), and our report dated March 21, 2017April 16, 2019, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

/s/ KPMG Huazhen LLPBasis for Opinion

Beijing, China
March 21, 2017


151

Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders of Huaneng Power International, Inc.:
We have audited the accompanying consolidated statement of financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2015, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for the years ended December 31, 2015 and 2014. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includesmisstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supportingregarding the amounts and disclosures in the consolidated financial statements. An auditOur audits also includes assessingincluded evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statement presentation.statement. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Huaneng Power International, Inc. and its subsidiaries as of December 31, 2015, and the results of their operations and their cash flows for the years ended December 31, 2015 and 2014, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

/s/ KPMG Huazhen LLP

Hong Kong,We have served as the Company’s auditor since 2012.

Beijing, China
April 16, 2019
March 22, 2016


152
Huaneng Power International, Inc.
Consolidated Statements of Comprehensive Income
For the years ended 31 December 2016, 20152018, 2017 and 20142016
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB, except per share data)

      For the year ended 31 December 
  

Note  2018  2017  2016 
      RMB  RMB (Note i)  RMB (Note i)
 
              
Operating revenue  5   169,550,624   152,459,444   113,814,236 
Tax and levies on operations      (1,788,998)  (1,376,312)  (1,177,818)
                 
Operating expenses                
Fuel  6   (105,736,173)  (92,737,304)  (56,617,542)
Maintenance      (4,393,335)  (4,347,723)  (4,343,349)
Depreciation      (20,466,423)  (20,180,830)  (14,815,620)
Labor      (11,845,280)  (10,590,084)  (8,043,406)
Service fees on transmission and transformer
facilities of  HIPDC
      (96,721)  (95,894)  (138,038)
Purchase of electricity      (4,678,431)  (3,787,032)  (3,066,415)
Others  6   (10,430,998)  (10,160,875)  (7,234,308)
                 
Total operating expenses      (157,647,361)  (141,899,742)�� (94,258,678)
                 
Profit from operations      10,114,265   9,183,390   18,377,740 
                 
Interest income      234,604   198,906   147,063 
Financial expenses, net                
Interest expense  6   (10,486,412)  (9,749,004)  (6,817,526)
Exchange (loss)/gain and bank charges, net      (160,899)  144,359   (250,076)
                 
Total financial expenses, net      (10,647,311)  (9,604,645)  (7,067,602)
                 
Share of profits less losses of associate
and joint ventures
  8   1,823,415   425,215   1,298,889 
Gain/(loss) on fair value changes of
financial assets/liabilities
  6   726,843   856,786   (12,986)
Other investment (loss)/income  6   (278,669)  1,742,081   1,070,034 
                 
Profit before income tax expense  6   1,973,147   2,801,733   13,813,138 
                 
Income tax expense  34   (643,173)  (1,217,526)  (3,465,151)
                 
Net profit      1,329,974   1,584,207   10,347,987 

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








The accompanying notes are an integral part of these financial statements.
F-1
Huaneng Power International, Inc.
Consolidated Statements of Comprehensive Income (Continued)
For the years ended 31 December 2018, 2017and 2016 2015 and 2014
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB, except per share data)

    For the year ended 31 December 
  
 2018  2017  2016 
 Note RMB  RMB (Note i)  RMB (Note i) 
           
Other comprehensive (loss)/income, net of tax          
           
Items that will not be reclassified to profit or loss:          
Fair value changes of other equity instrument investments   1,036   —   — 
Share of other comprehensive loss of investees accounted for under the equity method   (18,858)  —   — 
              
Items that may be reclassified subsequently to profit or loss:             
Fair value changes of available-for-sale financial assets (Note ii)   —   281,663   (148,041)
Gain on disposal of available-for-sale financial assets reclassified to profit or loss   —   (1,135,356)  (741,648)
Share of other comprehensive (loss)/income of investees accounted for under the equity method   (241,587)  121,208   (180,572)
Effective portion of cash flow hedges   (503,182)  62,853   1,015,103 
Translation differences of the financial statements of foreign operations   343,702   84,418   540,442 
              
Other comprehensive (loss)/income, net of tax   (418,889)  (585,214)  485,284 
              
Total comprehensive income   911,085   998,993   10,833,271 
              
Net profit attributable to:             
- Equity holders of the Company   734,435   1,579,836   8,520,427 
- Non-controlling interests   595,539   4,371   1,827,560 
              
    1,329,974   1,584,207   10,347,987 
              
Total comprehensive income/(loss) attributable to:             
- Equity holders of the Company   340,101   1,023,118   9,005,227 
- Non-controlling interests   570,984   (24,125)  1,828,044 
              
    911,085   998,993   10,833,271 
Earnings per share attributable to the shareholders of the Company (expressed in RMB per share)             
- Basic and diluted35  0.03   0.10   0.56 

     For the year ended 31 December 
  Note 2016  2015  2014 
    RMB  RMB  RMB 
            
Other comprehensive income/(loss), net of tax           
Items that may be reclassified subsequently to profit or loss:           
Fair value changes of available-for-sale financial asset    (148,041)  558,261   840,289 
Gain on disposal of available-for-sale financial asset reclassified to profit or loss
    (741,648)  -   - 
Share of other comprehensive (loss)/income of investees accounted for under the equity method    (180,572)  678,793   87,579 
Effective portion of cash flow hedges    1,015,103   51,922   (789,915)
Translation differences of the financial statements of foreign operations    540,442   (133,116)  (377,889)
Other comprehensive income/(loss), net of tax    485,284   1,155,860   (239,936)
Total comprehensive income    10,833,271   18,414,967   13,322,436 
Net profit attributable to:              
- Equity holders of the Company    8,520,427   13,651,933   10,757,317 
- Non-controlling interests    1,827,560   3,607,174   2,805,055 
     10,347,987   17,259,107   13,562,372 
Total comprehensive income attributable to:              
- Equity holders of the Company    9,005,227   14,807,889   10,517,694 
- Non-controlling interests    1,828,044   3,607,078   2,804,742 
     10,833,271   18,414,967   13,322,436 
Earnings per share attributable to the equity holders of the Company (expressed in RMB per share)              
- Basic and diluted 33  0.56   0.94   0.76 
Note:
(i)The Company and its subsidiaries have initially applied IFRS 15 and IFRS 9 at 1 January 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b).

(ii)This amount arose under the accounting policies applicable prior to 1 January 2018. As part of the opening balance adjustments as at 1 January 2018 the balance of this reserve has been reclassified to fair value reserve (non-recycling) and will not be reclassified to profit or loss in any future periods. See Note 2(b)(i).

The accompanying notes are an integral part of these financial statements.
F-2
Huaneng Power International, Inc.
Consolidated Statements of Financial Position
As at 31 December 20162018 and 20152017
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

     As at 31 December 
  

Note  2018  2017 
        (Note) 
ASSETS         
          
Non-current assets         
Property, plant and equipment  7   282,061,272   284,328,093 
Investments in associates and joint ventures  8   19,553,964   19,517,623 
Investment property      232,554   217,406 
Available-for-sale financial assets  10   —   1,604,993 
Other equity instrument investments  10   2,083,419   — 
Land use rights  11   11,450,034   11,264,785 
Power generation licenses  12   4,014,972   3,916,246 
Mining rights  13   1,511,186   1,646,271 
Deferred income tax assets  32   2,282,585   2,300,091 
Derivative financial assets  14   5,970   75,328 
Goodwill  15   15,572,227   15,484,120 
Other non-current assets  16   19,336,059   7,696,845 
             
Total non-current assets      358,104,242   348,051,801 
             
Current assets            
Inventories  17   9,543,691   7,385,411 
Other receivables and assets  18   6,455,911   6,081,517 
Accounts receivable  19   29,278,938   25,447,595 
Contract assets  5(c)
  11,058   — 
Derivative financial assets  14   28,735   258,364 
Bank balances and cash  36   15,832,788   9,364,823 
Assets held for sale  20   647,948   - 
             
Total current assets      61,799,069   48,537,710 
             
Total assets      419,903,311   396,589,511 

     As at 31 December 
  Note  2016  2015 
     RMB  RMB 
          
ASSETS         
          
Non-current assets         
Property, plant and equipment  7   223,061,809   219,673,070 
Investments in associates and joint ventures  8   19,632,113   19,745,192 
Available-for-sale financial assets  10   3,406,032   5,077,863 
Land use rights  11   8,456,347   8,313,766 
Power generation license  12   3,849,199   3,679,175 
Mining rights  13   1,646,271   1,646,271 
Deferred income tax assets  30   1,263,957   1,064,391 
Derivative financial assets  14   99,721   45,044 
Goodwill  15   12,135,729   11,677,182 
Other non-current assets  16   4,321,945   4,378,997 
Total non-current assets      277,873,123   275,300,951 
Current assets            
Inventories  17   6,879,143   5,422,732 
Other receivables and assets  18   5,533,770   4,087,989 
Accounts receivable  19   16,393,471   16,377,401 
Derivative financial assets  14   278,602   139,468 
Bank balances and cash  34   7,881,630   7,537,813 
Total current assets      36,966,616   33,565,403 
Total assets      314,839,739   308,866,354 







The accompanying notes are an integral part of these financial statements.
F-3
Huaneng Power International, Inc.
Consolidated Statements of Financial Position (Continued)
As at 31 December 20162018 and 20152017
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

    As at 31 December 
 Note  2016  2015     As at 31 December 
    RMB  RMB  

Note  2018  2017 
                (Note) 
EQUITY AND LIABILITIES                  
                  
         
Capital and reserves attributable to equity holders of the Company                  
Share capital  20   15,200,383   15,200,383   21   15,698,093   15,200,383 
Other equity instruments  22   10,077,396   5,068,550 
Capital surplus      24,760,331   24,815,489       26,194,931   24,114,400 
Surplus reserves  21   8,140,030   8,140,030   23   8,140,030   8,140,030 
Currency translation differences      (787,881)  (1,327,839)      (340,337)  (675,054)
Retained earnings      38,690,132   37,313,885       34,665,305   35,793,257 
      86,002,995   84,141,948             
      94,435,418   87,641,566 
            
Non-controlling interests      16,183,742   17,551,741       21,686,252   19,973,038 
            
Total equity      102,186,737   101,693,689       116,121,670   107,614,604 
            
Non-current liabilities                        
Long-term loans  23   64,990,361   66,028,023   25   129,548,161   107,030,958 
Long-term bonds  24   12,182,971   11,261,322   26   25,984,663   15,993,833 
Deferred income tax liabilities  30   2,262,752   2,494,143   32   3,866,159   4,566,680 
Derivative financial liabilities  14   201,169   430,089   14   231,308   148,486 
Other non-current liabilities  25   2,819,498   3,122,455   27   5,945,136   5,284,462 
            
Total non-current liabilities      82,456,751   83,336,032       165,575,427   133,024,419 
Current liabilities            
Accounts payable and other liabilities  26   28,325,227   26,185,764 
Taxes payable  27   1,089,105   2,071,471 
Dividends payable      1,575,180   788,895 
Salary and welfare payables      421,390   313,284 
Derivative financial liabilities  14   133,569   874,852 
Short-term bonds  28   27,311,103   19,347,706 
Short-term loans  29   57,668,874   49,883,489 
Current portion of long-term loans  23   9,560,885   12,351,205 
Current portion of long-term bonds  24   3,294,736   11,480,661 
Current portion of other non-current liabilities  25   816,182   539,306 
Total current liabilities      130,196,251   123,836,633 
Total liabilities      212,653,002   207,172,665 
Total equity and liabilities      314,839,739   308,866,354 


The accompanying notes are an integral part of these financial statements.
F-4

Huaneng Power International, Inc.
Consolidated Statements of Financial Position (Continued)
As at 31 December 2018 and 2017
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

     As at 31 December 
  

Note  2018  2017 
        (Note) 
EQUITY AND LIABILITIES (Continued)         
          
Current liabilities         
Accounts payable and other liabilities  28   35,138,680   38,900,132 
Contract liabilities  5(c)
  1,976,647   — 
Taxes payable  29   1,474,437   1,302,210 
Dividends payable      1,267,833   1,735,426 
Derivative financial liabilities  14   313,984   62,178 
Short-term bonds  30   11,541,454   11,068,357 
Short-term loans  31   61,038,772   80,251,348 
Current portion of long-term loans  25   20,620,849   18,098,458 
Current portion of long-term bonds  26   3,993,479   3,997,033 
Current portion of other non-current liabilities  27   475,646   535,346 
Liabilities held for sale  20   364,433   - 
             
Total current liabilities      138,206,214   155,950,488 
             
Total liabilities      303,781,641   288,974,907 
             
Total equity and liabilities      419,903,311   396,589,511 


Note: The Company and its subsidiaries have initially applied IFRS 15 and IFRS 9 at 1 January 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b).


These financial statements were approved for issue by the Board of Directors on 2119 March 20172019 and were signed on its behalf.













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

F-4F-5
Huaneng Power International, Inc.
Consolidated Statements of Changes in Equity
For the years ended 31 December 2016, 20152018, 2017 and 20142016
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

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

  Attributable to equity holders of the Company 
     Capital surplus                   
  
Share
capital
  
Share
premium
  
Hedging
reserve
  
Available-
for-sale
financial
assets
revaluation
reserve
  
Other
capital
reserve
  Subtotal  
Surplus
reserve
  
Currency
translation
differences
  
Retained
earnings
  Total  
Non-
controlling
interests
  
Total
equity
 
                                     
Balance as at 1 January 2016  15,200,383   22,226,889   (1,039,187)  2,516,173   1,111,614   24,815,489   8,140,030   (1,327,839)  37,313,885   84,141,948   17,551,741   101,693,689 
                                                 
Profit for the year ended 31 December 2016  -   -   -   -   -   -   -   -   8,520,427   8,520,427   1,827,560   10,347,987 
Other comprehensive income/(loss):                                                
Fair value changes of available-for-sale financial assets - gross  -   -   -   (197,529)  -   (197,529)  -   -   -   (197,529)  -   (197,529)
Gain on disposal of available-for-sale financial assets reclassified to profit or loss - gross  -   -   -   (988,865)  -   (988,865)  -   -   -   (988,865)  -   (988,865)
Fair value changes of and gain on disposal of available-for-sale financial assets - tax  -   -   -   296,705   -   296,705   -   -   -   296,705   -   296,705 
Shares of other comprehensive income of investees- accounted for under the equity method - gross  -   -   -   (242,217)  -   (242,217)  -   -   -   (242,217)  -   (242,217)
Shares of other comprehensive income of investees-accounted for under the equity method - tax  -   -   -   61,645   -   61,645   -   -   -   61,645   -   61,645 
Changes in fair value of effective portion of cash flow hedges - gross  -   -   574,455   -   -   574,455   -   -   -   574,455   -   574,455 
Changes in fair value of effective portion of cash flow hedges - tax  -   -   (95,407)  -   -   (95,407)  -   -   -   (95,407)  -   (95,407)
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   603,527   -   -   603,527   -   -   -   603,527   -   603,527 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   (102,600)  -   -   (102,600)  -   -   -   (102,600)  -   (102,600)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   (55,838)  -   -   (55,838)  -   -   -   (55,838)  -   (55,838)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - tax  -   -   9,492   -   -   9,492   -   -   -   9,492   -   9,492 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   101,889   -   -   101,889   -   -   -   101,889   -   101,889 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (20,415)  -   -   (20,415)  -   -   -   (20,415)  -   (20,415)
Currency translation differences  -   -   -   -   -   -   -   539,958   -   539,958   484   540,442 
                                                 
Total comprehensive income/(loss) for the year ended 31 December 2016  -   -   1,015,103   (1,070,261)  -   (55,158)  -   539,958   8,520,427   9,005,227   1,828,044   10,833,271 
Dividends relating to 2015  -   -   -   -   -   -   -   -   (7,144,180)  (7,144,180)  (3,481,663)  (10,625,843)
Net capital injection from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   285,620   285,620 
                                                 
Balance as at 31 December 2016 (Note)
  15,200,383   22,226,889   (24,084)  1,445,912   1,111,614   24,760,331   8,140,030   (787,881)  38,690,132   86,002,995   16,183,742   102,186,737 

The accompanying notes are an integral part of these financial statements.
F-5F-6
Huaneng Power International, Inc.
Consolidated Statements of Changes in Equity (Continued)
For the years ended 31 December 2016, 20152018, 2017 and 20142016
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

  Attributable to equity holders of the Company       
     Capital surplus                   
  Share capital  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserves  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
Balance as at 1 January 2015  14,420,383   18,322,575   (1,091,109)  1,279,119   1,111,614   19,622,199   7,196,349   (1,194,819)  30,085,379   70,129,491   14,653,215   84,782,706 
Profit for the year ended 31 December 2015  -   -   -   -   -   -   -   -   13,651,933   13,651,933   3,607,174   17,259,107 
Other comprehensive income/(loss):                                                
Fair value changes of available-for-sale financial asset - gross  -   -   -   744,348   -   744,348   -   -   -   744,348   -   744,348 
Fair value changes of available-for-sale financial asset - tax  -   -   -   (186,087)  -   (186,087)  -   -   -   (186,087)  -   (186,087)
Shares of other comprehensive income of investees accounted    for under the equity method - gross  -   -   -   904,007   -   904,007   -   -   -   904,007   -   904,007 
Shares of other comprehensive income of investees accounted    for under the equity method - tax  -   -   -   (225,214)  -   (225,214)  -   -   -   (225,214)  -   (225,214)
Changes in fair value of effective portion of cash flow hedges    - gross  -   -   (962,683)  -   -   (962,683)  -   -   -   (962,683)  -   (962,683)
Changes in fair value of effective portion of cash flow hedges - tax  -   -   166,135   -   -   166,135   -   -   -   166,135   -   166,135 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   1,003,778   -   -   1,003,778   -   -   -   1,003,778   -   1,003,778 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax   -   -   (170,642)  -   -   (170,642)  -   -   -   (170,642)  -   (170,642)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   (137,859)  -   -   (137,859)  -   -   -   (137,859)  -   (137,859)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - tax  -   -   23,436   -   -   23,436   -   -   -   23,436   -   23,436 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   161,124   -   -   161,124   -   -   -   161,124   -   161,124 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (31,367)  -   -   (31,367)  -   -   -   (31,367)  -   (31,367)
Currency translation differences  -   -   -   -   -   -   -   (133,020)  -   (133,020)  (96)  (133,116)
Total comprehensive income /(loss) for the year ended 31 December 2015  -   -   51,922   1,237,054   -   1,288,976   -   (133,020)  13,651,933   14,807,889   3,607,078   18,414,967 
Dividends relating to 2014  -   -   -   -   -   -   -   -   (5,479,746)  (5,479,746)  (3,285,330)  (8,765,076)
Issuance of new H shares, net of issuance expenses (Note 20)  780,000   3,904,314   -   -   -   3,904,314   -   -   -   4,684,314   -   4,684,314 
Capital injection from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   623,107   623,107 
Transfer to surplus reserve  -   -   -   -   -   -   943,681   -   (943,681)  -   -   - 
Business combinations (Note 39)  -   -   -   -   -   -   -   -   -   -   1,934,865   1,934,865 
Others  -   -   -   -   -   -   -   -   -   -   18,806   18,806 
                                                 
Balance as at 31 December 2015  15,200,383   22,226,889   (1,039,187)  2,516,173   1,111,614   24,815,489   8,140,030   (1,327,839)  37,313,885   84,141,948   17,551,741   101,693,689 
  Attributable to equity holders of the Company       
        Capital surplus                   
  Share capital  Other equity instruments  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserve  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
Balance as at 1 January 2017  15,200,383   -   22,226,889   (24,084)  1,445,912   1,111,614   24,760,331   8,140,030   (787,881)  38,690,132   86,002,995   16,183,742   102,186,737 
Profit for the year ended 31 December 2017  -   68,600   -   -   -   -   -   -   -   1,511,236   1,579,836   4,371   1,584,207 
Other comprehensive income/(loss):                                                    
Fair value changes of available-for-sale financial assets - gross  -   -   -   -   375,742   -   375,742   -   -   -   375,742   (50)  375,692 
Gain on disposal of available-for-sale financial assets reclassified to profit or loss-gross  -   -   -   -   (1,581,994)  -   (1,581,994)  -   -   -   (1,581,994)  -   (1,581,994)
Fair value changes of and gain on disposal of available-for-sale financial assets - tax  -   -   -   -   352,646   -   352,646   -   -   -   352,646   (37)  352,609 
Shares of other comprehensive income of investees – accounted for under the equity method  - gross  -   -   -   -   162,858   -   162,858   -   -   -   162,858   -   162,858 
Shares of other comprehensive income of investees – accounted for under the equity method - tax  -   -   -   -   (41,650)  -   (41,650)  -   -   -   (41,650)  -   (41,650)
Changes in fair value of effective portion of cash flow hedges - gross  -   -   -   85,558   -   -   85,558   -   -   -   85,558   -   85,558 
Changes in fair value of effective portion of cash flow hedges - tax  -   -   -   (16,239)  -   -   (16,239)  -   -   -   (16,239)  -   (16,239)
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   -   (109,817)  -   -   (109,817)  -   -   -   (109,817)  -   (109,817)
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   -   18,669   -   -   18,669   -   -   -   18,669   -   18,669 
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   -   (2,657)  -   -   (2,657)  -   -   -   (2,657)  -   (2,657)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank
charges, net - tax
  -   -   -   452   -   -   452   -   -   -   452   -   452 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   -   107,233   -   -   107,233   -   -   -   107,233   -   107,233 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   -   (20,346)  -   -   (20,346)  -   -   -   (20,346)  -   (20,346)
Currency translation differences  -   -   -   -   -   -   -   -   112,827   -   112,827   (28,409)  84,418 
Total comprehensive income/(loss) for the year ended 31 December 2017  -   68,600   -   62,853   (732,398)  -   (669,545)  -   112,827   1,511,236   1,023,118   (24,125)  998,993 
Business combination  -   -   -   -   -   -   -   -   -   -   -   6,292,577   6,292,577 
Issue of perpetual corporate bonds  -   4,999,950   -   -   -   -   -   -   -   -   4,999,950   -   4,999,950 
Dividends relating to 2016  -   -   -   -   -   -   -   -   -   (4,408,111)  (4,408,111)  (2,344,391)  (6,752,502)
Net capital injection from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   -   846,847   846,847 
Disposal of non-controlling interests of a subsidiary  -   -   28,054   -   -   -   28,054   -   -   -   28,054   (28,054)  - 
Acquisition of non-controlling interests of a subsidiary  -   -   (4,440)  -   -   -   (4,440)  -   -   -   (4,440)  (86,699)  (91,139)
Disposal of subsidiaries  -   -   -   -   -   -   -   -   -   -   -   (866,859)  (866,859)
Balance as at 31 December 2017 (Note)  15,200,383   5,068,550   22,250,503   38,769   713,514   1,111,614   24,114,400   8,140,030   (675,054)  35,793,257   87,641,566   19,973,038   107,614,604 

Note: The Company and its subsidiaries have initially applied IFRS 15 and IFRS 9 at 1 January 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b).



The accompanying notes are an integral part of these financial statements.
F-6F-7
Huaneng Power International, Inc.
Consolidated Statements of Changes in Equity (Continued)
For the years ended 31 December 2016, 20152018, 2017 and 20142016
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

  Attributable to equity holders of the Company       
     Capital surplus                   
  Share capital  Share premium  Hedging reserve  Available-for-sale financial assets revaluation reserve  Other capital reserve  Subtotal  Surplus reserves  Currency translation differences  Retained earnings  Total  Non-controlling interests  Total equity 
Balance as at 1 January 2016  15,200,383   22,226,889   (1,039,187)  2,516,173   1,111,614   24,815,489   8,140,030   (1,327,839)  37,313,885   84,141,948   17,551,741   101,693,689 
Profit for the year ended 31 December 2016  -   -   -   -   -   -   -   -   8,520,427   8,520,427   1,827,560   10,347,987 
Other comprehensive income/(loss):                                                
Fair value changes of available-for-sale financial asset - gross  -   -   -   (197,529)  -   (197,529)  -   -   -   (197,529)  -   (197,529)
Gain on disposal of available-for-sale financial asset reclassified to profit or loss - gross  -   -   -   (988,865)  -   (988,865)  -   -   -   (988,865)  -   (988,865)
Fair value changes of and gain on disposal of available-for-sale financial asset - tax  -   -   -   296,705   -   296,705   -   -   -   296,705   -   296,705 
Shares of other comprehensive income of investees- accounted for under the equity method - gross  -   -   -   (242,217)  -   (242,217)  -   -   -   (242,217)  -   (242,217)
Shares of other comprehensive income of investees- accounted for under the equity method - tax  -   -   -   61,645   -   61,645   -   -   -   61,645   -   61,645 
Changes in fair value of effective portion of cash flow hedges - gross  -   -   574,455   -   -   574,455   -   -   -   574,455   -   574,455 
Changes in fair value of effective portion of cash flow hedges - tax  -   -   (95,407)  -   -   (95,407)  -   -   -   (95,407)  -   (95,407)
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   603,527   -   -   603,527   -   -   -   603,527   -   603,527 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   (102,600)  -   -   (102,600)  -   -   -   (102,600)  -   (102,600)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   (55,838)  -   -   (55,838)  -   -   -   (55,838)  -   (55,838)
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - tax  -   -   9,492   -   -   9,492   -   -   -   9,492   -   9,492 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - gross  -   -   101,889   -   -   101,889   -   -   -   101,889   -   101,889 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense - tax  -   -   (20,415)  -   -   (20,415)  -   -   -   (20,415)  -   (20,415)
Currency translation differences  -   -   -   -   -   -   -   539,958   -   539,958   484   540,442 
Total comprehensive income/(loss) for the year ended 31 December 2016  -   -   1,015,103   (1,070,261)  -   (55,158)  -   539,958   8,520,427   9,005,227   1,828,044   10,833,271 
Dividends relating to 2015 (Note 22)  -   -   -   -   -   -   -   -   (7,144,180)  (7,144,180)  (3,481,663)  (10,625,843)
Capital injection from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   285,620   285,620 
Balance as at 31 December 2016  15,200,383   22,226,889   (24,084)  1,445,912   1,111,614   24,760,331   8,140,030   (787,881)  38,690,132   86,002,995   16,183,742   102,186,737 
     Attributable to equity holders of the Company       
           Capital surplus                   
  Share capital  Other equity instruments  Share premium  Hedging reserve  Fair value Reserve (non-recycling)  Other reserve in other comprehensive income  Other capital reserve  Subtotal  Surplus reserve  Currency translation differences  Retained earnings  Total  Non- controlling interests  Total equity 
Balance as at 31 December 2017  15,200,383   5,068,550   22,250,503   38,769   -   713,514   1,111,614   24,114,400   8,140,030   (675,054)  35,793,257   87,641,566   19,973,038   107,614,604 
Impact on initial application of IFRS 9(Note 2(b)(i))  -   -   -   -   944,603   (574,657)  -   369,946   -   -   -   369,946   -   369,946 
Balance as at 1 January 2018  15,200,383   5,068,550   22,250,503   38,769   944,603   138,857   1,111,614   24,484,346   8,140,030   (675,054)  35,793,257   88,011,512   19,973,038   107,984,550 
Profit for the year ended 31 December 2018  -   342,349   -   -   -   -   -   -   -   -   392,086   734,435   595,539   1,329,974 
Other comprehensive income/(loss):                                                        
Fair value changes of other equity investment instruments - gross  -   -   -   -   1,412   -   -   1,412   -   -   -   1,412   (31)  1,381 
Fair value changes of other equity investment instruments - tax  -   -   -   -   (353)  -   -   (353)  -   -   -   (353)  8   (345)
Shares of other comprehensive income of investees – accounted for under the equity method  - gross  -   -   -   -   (25,144)  (323,220)  -   (348,364)  -   -   -   (348,364)  -   (348,364)
Shares of other comprehensive income of investees – accounted for under the equity method - tax  -   -   -   -   6,286   81,633   -   87,919   -   -   -   87,919   -   87,919 
Changes in fair value of effective portion of cash flow hedges - gross  -   -   -   (127,265)  -   -   -   (127,265)  -   -   -   (127,265)  (40,382)  (167,647)
Changes in fair value of effective portion of cash flow hedges - tax  -   -   -   21,264   -   -   -   21,264   -   -   -   21,264   6,865   28,129 
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - gross  -   -   -   (524,228)  -   -   -   (524,228)  -   -   -   (524,228)  -   (524,228)
Cash flow hedges recorded in shareholders’ equity reclassified to inventories - tax  -   -   -   89,119   -   -   -   89,119   -   -   -   89,119   -   89,119 
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - gross  -   -   -   18,778   -   -   -   18,778   -   -   -   18,778   -   18,778 
Cash flow hedges recorded in shareholders’ equity reclassified to exchange gain and bank charges, net - tax  -   -   -   (3,192)  -   -   -   (3,192)  -   -   -   (3,192)  -   (3,192)
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense – gross  -   -   -   68,604   -   -   -   68,604   -   -   -   68,604   -   68,604 
Cash flow hedges recorded in shareholders’ equity reclassified to interest expense – tax  -   -   -   (12,745)  -   -   -   (12,745)  -   -   -   (12,745)  -   (12,745)
Currency translation differences  -   -   -   -   -   -   -   -   -   334,717   -   334,717   8,985   343,702 
Total comprehensive income/(loss) for the year ended 31 December 2018  -   342,349   -   (469,665)  (17,799)  (241,587)  -   (729,051)  -   334,717   392,086   340,101   570,984   911,085 
Business combination (Note 41)  -   -   -   -   -   -   -   -   -   -   -   -   1,590,753   1,590,753 
Issue of new A shares, net of issue expenses (Note 21)  497,710   -   2,747,620   -   -   -   -   2,747,620   -   -   -   3,245,330   -   3,245,330 
Issue of other equity instruments (Note 22 )  -   5,000,000   -   -   -   -   -   -   -   -   -   5,000,000   -   5,000,000 
Dividends relating to 2017 (Note 24)  -   -   -   -   -   -   -   -   -   -   (1,520,038)  (1,520,038)  (797,858)  (2,317,896)
Cumulative distribution of other equity instruments (Note 24)  -   (333,503)  -   -   -   -   -   -   -   -   -   (333,503)  -   (333,503)
Net capital injection from non-controlling interests of subsidiaries  -   -   -   -   -   -   -   -   -   -   -   -   726,531   726,531 
Acquisition of non-controlling interests of subsidiaries  -   -   (227,441)  -   -   -   -   (227,441)  -   -   -   (227,441)  (377,196)  (604,637)
Share of other capital reserve of investees
accounted for under the equity method
  -   -   -   -   -   -   (80,543)  (80,543)  -   -   -   (80,543)  -   (80,543)
Balance as at 31 December 2018  15,698,093   10,077,396   24,770,682   (430,896)  926,804   (102,730)  1,031,071   26,194,931   8,140,030   (340,337)  34,665,305   94,435,418   21,686,252   116,121,670 


The accompanying notes are an integral part of these financial statements.
F-7F-8
Huaneng Power International, Inc.
Consolidated Statements of Cash Flows
For the years ended 31 December 2016, 20152018, 2017 and 20142016
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

     
For the year ended 31 December
 
  Note
  2018  2017  2016 
     RMB  RMB (Note)  RMB (Note)
 
             
CASH FLOWS FROM OPERATING ACTIVITIES            
Profit before income tax expense     1,973,147   2,801,733   13,813,138 
Adjustments to reconcile profit before income tax expense to net cash provided by operating activities:               
Depreciation     20,466,423   20,180,830   14,815,620 
Provision for impairment loss on property, plant and equipment     989,778   1,046,195   1,063,735 
Provision for impairment loss on goodwill     409,371   -   - 
Provision for impairment loss on mining rights     135,085   -   - 
Provision for impairment loss on land use rights     -   108,590   51,981 
Provision for other non-current assets     8,432   5,008   - 
Amortization of land use rights     344,068   341,125   225,707 
Amortization of other non-current assets     105,623   113,878   121,388 
Amortization of employee housing subsidies     653   653   866 
Recognition of provision for loss allowance     40,967   27,682   89,498 
Recognition/(reversal) of provision for inventory obsolescence     253,816   (263)  (256)
(Gain)/loss on fair value changes of financial assets/liabilities     (726,843)  (856,786)  12,986 
Other investment loss/(income)     278,669   (1,742,081)  (1,070,034)
Net (gain)/loss on disposals of non-current assets     (47,005)  616,456   590,049 
Unrealized exchange loss/(gain), net     103,888   (157,056)  195,055 
Share of profits less losses of               
    associates and joint ventures     (1,823,415)  (425,215)  (1,298,889)
Interest income     (234,604)  (198,906)  (147,063)
Interest expense     10,486,412   9,749,004   6,817,526 
Others     (198,046)  171,611   (213,089)
Changes in working capital, net of effects of acquisitions:               
Inventories     (1,996,075)  714,045   (1,270,582)
Other receivables and assets     (150,782)  (199,023)  (20,810)
Accounts receivable     (3,273,058)  (6,201,149)  (838,272)
Contract assets     (11,058)  —   — 
Restricted cash     (347,777)  9,670   (11,566)
Accounts payable and other liabilities     349,703   2,414,376   1,912,034 
Contract liabilities     471,721   —   — 
Taxes payable     2,565,786   2,543,863   1,279,505 
Interest received     173,986   136,134   84,806 
Income tax expense paid     (1,620,887)  (2,003,011)  (4,692,509)
                
Net cash provided by operating activities     28,727,978   29,197,363   31,510,824 

  For the year ended 31 December 
  2016  2015  2014 
  RMB  RMB  RMB 
          
CASH FLOWS FROM OPERATING ACTIVITIES         
Profit before income tax expense  13,813,138   22,958,050   19,049,580 
Adjustments to reconcile profit before income tax expense to net cash provided by operating activities:            
Depreciation  14,815,620   14,411,632   11,646,683 
Provision for impairment loss on property, plant and equipment  1,063,735   1,047,641   1,358,522 
Provision for impairment loss on investment in an associate  -   178,131   120,050 
Provision for impairment loss on goodwill  -   1,105,649   641,061 
Provision for impairment loss on mining rights  -   760,296   - 
Provision for impairment loss on land use rights  51,981   -   - 
Amortization of land use rights  225,707   213,206   133,069 
Amortization of other non-current assets  121,388   92,775   99,528 
Amortization of employee housing subsidies  866   940   940 
Recognition/(reversal) of provision for doubtful accounts  89,498   (3,392)  4,577 
(Reversal)/recognition of provision for inventory obsolescence  (256)  1,828   (2,647)
Loss /(gain) on fair value changes of financial assets/liabilities  12,986   16,742   (42,538)
Other investment income  (1,070,034)  (115,238)  (80,580)
Net loss on disposals of non-current assets  590,049   438,321   427,034 
Unrealized exchange loss/ (gain), net  195,055   166,148   (34,769)
Share of profits less losses of associates and joint ventures  (1,298,889)  (1,525,975)  (1,315,876)
Interest income  (147,063)  (160,723)  (159,550)
Interest expense  6,817,526   7,945,734   7,814,114 
Others  (213,089)  (89,332)  (217,829)
Changes in working capital:            
Inventories  (1,270,582)  2,106,821   (195,853)
Other receivables and assets  (20,810)  72,925   (64,288)
Accounts receivable  (838,272)  (175,429)  466,878 
Restricted cash  (11,566)  499,899   (243,624)
Accounts payable and other liabilities  1,811,681   (2,932,761)  (1,417,668)
Taxes payable  1,279,505   1,366,209   1,245,941 
Salary and welfare payables  100,353   75,803   (17,566)
Interest received  84,806   102,813   97,374 
Income tax expense paid  (4,692,509)  (6,196,005)  (5,992,496)
Net cash provided by operating activities  31,510,824   42,362,708   33,320,067 



The accompanying notes are an integral part of these financial statements.
F-8F-9
Huaneng Power International, Inc.
Consolidated Statements of Cash Flows (Continued)
For the years ended 31 December 2016, 20152018, 2017 and 20142016
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

     For the year ended 31 December 
  

Note  2018  2017  2016 
     RMB  RMB (Note)  RMB (Note)
 
CASH FLOWS FROM INVESTING ACTIVITIES            
Payment for the purchase of property, plant and equipment     (20,613,314)  (25,798,009)  (20,144,903)
Proceeds from disposal of property, plant and equipment, land use rights and other non-current assets     127,182   286,609   144,346 
Prepayments of land use rights     (94,684)  (213,928)  (89,430)
Payment for the purchase of other non-current assets     30,107   (33,498)  (50,653)
Cash dividends received     618,592   1,419,380   1,057,642 
Payment for investment in associates and joint ventures     (463,259)  (301,916)  (276,118)
Cash paid for acquiring available-for-sale financial assets     —   (5,600)  - 
Cash paid for acquiring other equity instrument investments     (450)  —   — 
Cash consideration paid for acquisition of subsidiaries, net of cash acquired  41   (674,845)  (10,817,107)  157,421 
Cash received from disposal of a subsidiary, net of cash of the subsidiaries      -   530,437   - 
Cash received from disposal of  available-for-sale financial assets      —   2,186,758   1,474,301 
Others      694,789   998,049   77,748 
                 
Net cash used in investing activities      
(20,375,882
)
  
(31,748,825
)
  
(17,649,646
)

  For the year ended 31 December 
  Note2016  2015  2014 
  RMB  RMB  RMB 
          
CASH FLOWS FROM INVESTING ACTIVITIES         
Payment for the purchase of property, plant and equipment  (20,144,903)  (24,191,285)  (19,858,216)
Proceeds from disposal of property, plant and equipment  144,346   109,013   70,712 
Prepayments of land use rights  (89,430)  (136,045)  (500,100)
Payment for the purchase of other non-current assets  (50,653)  (6,981)  (21,576)
Cash dividends received  1,057,642   937,189   565,334 
Payment for investment in associates and joint ventures  (276,118)  (889,780)  (266,877)
Cash consideration paid for acquisition of subsidiaries, net of cash acquired 39 157,421   (8,887,882)  (17,991)
Cash received from disposal of available-for-sale financial assets  1,474,301   -   - 
Cash received from disposal of a subsidiary  -   -   503,809 
Others  77,748   50,759   54,092 
Net cash used in investing activities  (17,649,646)  (33,015,012)  (19,470,813)













The accompanying notes are an integral part of these financial statements.
F-9F-10
Huaneng Power International, Inc.
Consolidated Statements of Cash Flows (Continued)
For the years ended 31 December 2016, 20152018, 2017 and 20142016
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB)

    For the year ended 31 December 
 Note
 2018  2017  2016 
   RMB  RMB (Note)  RMB (Note)
 
CASH FLOWS FROM FINANCING ACTIVITIES          
Issuance of short-term bonds   40,000,000   30,988,679   32,982,340 
Repayments of short-term bonds   (39,500,000)  (47,000,000)  (25,000,000)
Proceeds from short-term loans   77,005,025   107,564,128   85,689,874 
Repayments of short-term loans   (98,345,708)  (96,378,054)  (77,904,489)
Proceeds from long-term loans   48,859,376   32,706,327   15,978,023 
Repayments of long-term loans   (34,269,623)  (17,390,982)  (20,702,421)
Issuance of long-term bonds   13,999,807   7,800,000   4,200,000 
Repayments of long-term bonds   (4,000,000)  (3,300,000)  (11,500,000)
Interest paid   (10,987,871)  (10,080,102)  (7,344,781)
Net proceeds from the issuance of new shares   3,245,330   -   - 
Net proceeds from the issuance of other equity instruments   5,000,000   4,999,950   - 
Net capital injection from non-controlling interests of subsidiaries   725,683   838,084   285,620 
Dividends paid to shareholders of the Company   (1,520,038)  (4,352,973)  (7,206,220)
Dividends paid to non-controlling interests of subsidiaries   (1,265,451)  (2,184,145)  (2,695,378)
Government grants   -   590,629   233,276 
Payment for finance leasing   (637,026)  (695,019)  (571,485)
Others   (552,574)  (93,342)  (46,209)
              
Net cash (used in)/generated from financing activities   (2,243,070)  4,013,180   (13,601,850)
              
Effect of exchange rate fluctuations on cash held   26,266   10,171   72,923 
              
NET INCREASE IN CASH AND CASH EQUIVALENTS   6,135,292   1,471,889   332,251 
Cash and cash equivalents as at beginning of the year   9,282,390   7,810,501   7,478,250 
CASH AND CASH EQUIVALENTS AS AT END OF THE YEAR36  15,417,682   9,282,390   7,810,501 

    For the year ended 31 December 
  Note 2016  2015  2014 
   RMB  RMB  RMB 
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Issuance of short-term bonds   32,982,340   18,980,000   17,971,000 
Repayments of short-term bonds   (25,000,000)  (18,000,000)  (15,000,000)
Proceeds from short-term loans   85,689,874   67,298,044   61,503,204 
Repayments of short-term loans   (77,904,489)  (62,600,955)  (55,896,200)
Proceeds from long-term loans   15,978,023   9,943,689   9,647,090 
Repayments of long-term loans   (20,702,421)  (12,799,719)  (17,522,953)
Issuance of long-term bonds   4,200,000   -   3,988,000 
Repayments of long-term bonds   (11,500,000)  (5,000,000)  (5,700,000)
Interest paid   (7,344,781)  (8,677,316)  (8,097,216)
Net proceeds from the issuance of new H shares   -   4,684,314   2,453,986 
Net capital injection from non-controlling interests of subsidiaries   285,620   623,107   606,719 
Dividends paid to shareholders of the Company   (7,206,220)  (5,535,655)  (5,341,046)
Dividends paid to non-controlling interests of subsidiaries   (2,695,378)  (2,954,194)  (1,474,329)
Proceeds from sales leaseback classified as finance lease   -   100,000   1,500,000 
Cash received from disposal of non-controlling interests of a subsidiary   -   -   384,702 
Others   (384,418)  (201,974)  82,863 
Net cash used in financing activities   (13,601,850)  (14,140,659)  (10,894,180)
Effect of exchange rate fluctuations on cash held   72,923   32,846   (58,379)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS   332,251   (4,760,117)  2,896,695 
Cash and cash equivalents as at beginning of the year   7,478,250   12,238,367   9,341,672 
CASH AND CASH EQUIVALENTS AS AT END OF THE YEAR34  7,810,501   7,478,250   12,238,367 

Note: The Company and its subsidiaries have initially applied IFRS 15 and IFRS 9 at 1 January 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b).




The accompanying notes are an integral part of these financial statements.
F-10F-11
HUANENG POWER INTERNATIONAL, INC.
NOTES TO THE FINANCIAL STATEMENTS
(Prepared in accordance with International Financial Reporting Standards)
(Amounts expressed in thousands of RMB unless otherwise stated)

1Company organization and principal activities

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

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

2Principal accounting policies

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


(a)Basis of preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”) and the disclosure requirements of the Hong Kong Companies Ordinance. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-saleequity instrument investments designated at fair value through other comprehensive income, financial assets at fair value through profit or loss and derivative financial assets and liabilities.

Non-current assets and disposal group held for sale are stated at the lower of carrying amount and fair value less costs to sell.

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

F-12

As at and for the year ended 31 December 2016,2018, the Company and its subsidiaries have net current liabilities of approximately RMB 76.4 billion, and a portion of the Company and its subsidiaries’ funding requirements for capital expenditures were satisfied by short-term financing. Consequently, as at 31 December 2016, the Company and its subsidiaries have net current liabilities of approximately RMB93.2 billion. Taking into consideration of the expected operating cash flows of the Company and its subsidiaries and the undrawn available banking facilities of approximately RMB262.8RMB 268.8 billion as at 31 December 2016,2018, the Company and its subsidiaries are expected to refinance certain of its short-term loans and bonds and also to consider alternative sources of financing, where applicable and when needed.

Therefore, the directors of the Company are of the opinion that the Company and its subsidiaries will be able to meet its liabilities as and when they fall due within the next twelve months and accordingly, these consolidated financial statements are prepared on a going concern basis.
F-11
The IASB has issued certain new and revised IFRSs that are first effective or available for early adoption for the current accounting period of the Company and its subsidiaries. Note 2(b) provides information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Company and its subsidiaries for the current and prior accounting periods reflected in these financial statements.

2Principal accounting policies (Continued)


(a)(b)
Basis of preparation (Continued)
Changes in accounting policies

The IASB has issued a new standard and a number of new IFRSs and amendments to IFRSs that are first effective for the current accounting period of the Company and its subsidiaries. None ofOf these, new standard orthe following developments have had a material effect on howare relevant to the Company and its subsidiaries’ results and financial position for the current or prior periods have been prepared or presented. statements:


(i)
IFRS 9, Financial instruments

(ii)
IFRS 15, Revenue from contracts with customers

(iii)
IFRIC 22, Foreign currency transactions and advance consideration

The Company and its subsidiaries have not applied any new standard or interpretation that is not yet effective for current accounting period.


(b)(i)
IFRS 9, Financial instruments

IFRS 9 replaces IAS 39, Financial instruments: recognition and measurement. It sets out the requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items.

The Company and its subsidiaries have applied IFRS 9 retrospectively to items that existed at 1 January 2018 in accordance with the transition requirements. The Company and its subsidiaries have recognised the cumulative effect of initial application as an adjustment to the opening equity at 1 January 2018. Therefore, comparative information continues to be reported under IAS 39.

The following table summarises the impact of transition to IFRS 9 on reserves at 1 January 2018.

F-13

Other reserve in other comprehensive income
Transferred to fair value reserve (non-recycling) relating to equity instrument investments now measured at fair value through other comprehensive income(574,657)
Fair value reserve (non-recycling)
Transferred from other reserve in other comprehensive income relating to equity instrument investments now measured at fair value through other comprehensive income and increase in fair value reserve (non-recycling) at 1 January 2018944,603

Further details of the nature and effect of the changes to previous accounting policies and the transition approach are set out below:


AClassification of financial assets and financial liabilities

IFRS 9 categorises financial assets into three principal classification categories: measured at amortised cost, at fair value through other comprehensive income (FVOCI) and at fair value through profit or loss (FVTPL). These supersede IAS 39’s categories of held-to-maturity investments, loans and receivables, available-for-sale financial assets and financial assets measured at FVTPL. The classification of financial assets under IFRS 9 is based on the business model under which the financial asset is managed and its contractual cash flow characteristics.

Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are not separated from the host. Instead, the hybrid instrument as a whole is assessed for classification.

The following table shows the original measurement categories for available-for-sale financial assets of the Company and its subsidiaries under IAS 39 and reconciles the carrying amounts of those financial assets determined in accordance with IAS 39 to those determined in accordance with IFRS 9.

  
IAS 39 Carrying amount at 31 December 2017
  Reclassification  Remeasurement  IFRS 9 Carrying amount at 1 January 2018 
             
             
Financial assets measured at FVOCI (non-recyclable)            
Other equity instrument investments(i)  -   1,604,993   476,595   2,081,588 
                 
Financial assets classified as available-for-sale under IAS 39(i)  1,604,993   (1,604,993)  -   - 

F-14

Note (i): Under IAS 39, equity securities not held for trading were classified as available-for-sale financial assets. These equity securities are classified as at FVTPL under IFRS 9, unless they are eligible for and designated at FVOCI by the Company and its subsidiaries. At 1 January 2018, the Company and its subsidiaries designated its equity securities at FVOCI, as the investments are held for strategic purposes (see Note 10).

With respect to the financial assets classified as “loans and receivables” (which were measured at amortised cost) and “financial assets measured at FVTPL” under IAS 39, the Company and its subsidiaries have assessed the business model under which the financial assets are managed and its contractual cash flow characteristics, and these financial assets continue with their respective classification and measurements upon the adoption of IFRS 9, and the carrying amounts of these financial assets as at 1 January 2018 have not been impacted by the initial application of IFRS 9.

For an explanation of how the Company and its subsidiaries classify and measure financial assets and recognise related gains and losses under IFRS 9, see respective accounting policy notes in Note 2(m)A.

The measurement categories for all financial liabilities of the Company and its subsidiaries remain the same. The carrying amounts for all financial liabilities of the Company and its subsidiaries as at 1 January 2018 have not been significantly impacted by the initial application of IFRS 9.

The Company and its subsidiaries did not designate or de-designate any financial asset or financial liability at FVTPL as at 1 January 2018.


BCredit losses

IFRS 9 replaces the “incurred loss” model in IAS 39 with the “expected credit loss” (“ECL”) model. The ECL model requires an ongoing measurement of credit risk associated with a financial asset and therefore recognises ECLs earlier than under the “incurred loss” accounting model in IAS 39.

The Company and its subsidiaries applies the new ECL model to the following items:

- financial assets measured at amortised cost;
- contract assets as defined in IFRS 15 (Note 2(z));
- debt investments measured at FVOCI (recycling);
- lease receivables; and
- financial guarantee contracts issued (Note 2(m)A).

The Company and its subsidiaries assessed the ECLs of financial assets measured at amortised cost and lease receivables as at 1 January 2018. There was not significant change to the loss allowance for these financial assets of the Company and its subsidiaries as at 1 January 2018.

For further details on the Company and its subsidiaries’ accounting policy for accounting for credit losses, see Note 2(m)A(vi).
F-15


CHedge accounting

The Company and its subsidiaries have elected to adopt the new general hedge accounting model in IFRS 9.  Depending on the complexity of the hedge, this new accounting model allows a more qualitative approach to assessing hedge effectiveness compared to IAS 39 to be applied, and the assessment is always forward-looking. The adoption of IFRS 9 has not had a significant impact on the Company and its subsidiaries’ financial statements in this regard.

For an explanation of how the Company and its subsidiaries apply hedge accounting, see Note 2(m)A(vii).


DTransition

Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, except as described below:


-Information relating to comparative periods has not been restated.  Differences in the carrying amounts of financial assets resulting from the adoption of IFRS 9 are recognised in reserves as at 1 January 2018. Accordingly, the information presented for 2017 continues to be reported under IAS 39 and thus may not be comparable with the current period.


-The following assessments have been made on the basis of the facts and circumstances that existed as at 1 January 2018:

-the determination of the business model within which a financial asset is held; and

-the designation of investments in equity instruments not held for trading to be classified as at FVOCI (non-recycling).


-If, at the date of initial application, the assessment of whether there has been a significant increase in credit risk since initial recognition would have involved undue cost or effort, a lifetime ECL has been recognised for that financial instrument.


-All hedging relationships designated under IAS 39 as at 31 December 2017 met the criteria for hedge accounting under IFRS 9 as at 1 January 2018 and are therefore regarded as continuing hedging relationships. Changes to hedge accounting policies have been applied prospectively.


(ii)IFRS 15, Revenue from contracts with customers

IFRS 15 establishes a comprehensive framework for recognising revenue and some costs from contracts with customers. IFRS 15 replaces IAS 18, Revenue, which covered revenue arising from sale of goods and rendering of services, and IAS 11, Construction contracts, which specified the accounting for construction contracts.

IFRS 15 also introduces additional qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

The Company and its subsidiaries have elected to use the cumulative effect transition method and have recognised the cumulative effect of initial application as an adjustment to the opening balance of equity as at 1 January 2018. Therefore, comparative information has not been restated and continues to be reported under IAS 18 and IAS 11. As allowed by IFRS 15, the Company and its subsidiaries have
F-16
applied the new requirements only to contracts that were not completed before 1 January 2018, referred to as open contracts.

Since more than 95% of the Company and its subsidiaries' revenue comprised of contracts with customers from rate-regulated sales of electricity and heat, where revenue continue to be recognised upon transmission to the customers. The adoption of IFRS 15 did not have a material impact on the consolidated financial statements.

Further details of the nature and effect of the changes on previous accounting policies are set out below:


ATiming of revenue recognition

Previously, revenue from sale of goods was generally recognised at a point in time when the risks and rewards of ownership of the goods had passed to the customers, whereas revenue arising from construction contracts and provision of services was recognised over time.

Under IFRS 15, revenue is recognised when the customer obtains control of the promised good or service in the contract. This may be at a single point in time or over time. IFRS 15 identifies the following three situations in which control of the promised good or service is regarded as being transferred over time:


-When the customer simultaneously receives and consumes the benefits provided by the entity’s performance, as the entity performs;


-When the entity’s performance creates or enhances an asset (for example work in progress) that the customer controls as the asset is created or enhanced;


-When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

If the contract terms and the entity’s activities do not fall into any of these 3 situations, then under IFRS 15 the entity recognises revenue for the sale of that good or service at a single point in time, being when control has passed. Transfer of risks and rewards of ownership is only one of the indicators that is considered in determining when the transfer of control occurs.

Since more than 95% of the Company and its subsidiaries' revenue comprised of contracts with customers from rate-regulated sales of electricity and heat, where revenue continue to be recognised upon transmission to the customers. The adoption of IFRS 15 did not have a significant impact on timing of revenue recognition.


BPresentation of contract assets and liabilities

Under IFRS 15, accounts receivable is recognised only if the Company and its subsidiaries have an unconditional right to consideration. If the Company and its subsidiaries recognise the related revenue (see Note 2(z)) before being unconditionally entitled to the consideration, then the entitlement to consideration is classified as a contract asset. Similarly, a contract liability, rather than a payable, is recognised when a customer pays non-refundable consideration, or is contractually required to pay non-refundable consideration and the amount is already due, before the Company and its subsidiaries recognise the related revenue. For a single contract with the customer, either a net contract asset or a net contract liability is presented. For multiple contracts, contract assets and contract liabilities of unrelated contracts are not presented on a net basis.
F-17

Previously, contract balances relating to “amounts received in advance” and “other deferred income” were presented in the statement of financial position under “accounts payable and other liabilities” and “other non-current liabilities”, respectively.

To reflect these changes in presentation, the Company and its subsidiaries have made the following adjustments as at 1 January 2018, as a result of the adoption of IFRS 15:

“Accounts payable and other liabilities - amounts received in advance” amounting to RMB1,505 million as at 1 January 2018 is now presented as “contract liabilities”.

 “Other non-current liabilities - other deferred income” amounting to RMB1,750 million as at 1 January 2018 is now presented as “Other non-current liabilities – contract liabilities”.


CDisclosure of the estimated impact on the amounts reported in respect of the year ended 31 December 2018 as a result of the adoption of IFRS 15 on 1 January 2018

The following tables summarise the estimated impact of adoption of IFRS 15 on the Company and its subsidiaries’ consolidated financial statements for the year ended 31 December 2018, by comparing the amounts reported under IFRS 15 in these consolidated financial statements with estimates of the hypothetical amounts that would have been recognised under IAS 18 and IAS 11 if those superseded standards had continued to apply to 2018 instead of IFRS 15. These tables show only those line items impacted by the adoption of IFRS 15


  Amounts reported in accordance with IFRS 15 (A)  Hypothetical amounts under IASs 18 and 11 (B)  Difference Estimated impact of adoption of IFRS 15 on 2018 (A)-(B) 
Line items in the consolidated statement of financial position as at 31 December 2018 impacted by the adoption of IFRS 15         
          
Accounts receivable  29,278,938   29,289,996   (11,058)
Contract assets  11,058   -   11,058 
Total current assets  61,799,069   61,799,069   - 
Total assets  419,903,311   419,903,311   - 
Accounts payable and other liabilities  35,138,680   37,115,327   (1,976,647)
Contract liabilities  1,976,647   -   1,976,647 
Total current liabilities  138,206,214   138,206,214   - 
Total liabilities  303,781,641   303,781,641   - 

F-18


(iii)IFRIC 22, Foreign currency transactions and advance consideration

This interpretation provides guidance on determining “the date of the transaction” for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) arising from a transaction in which an entity receives or pays advance consideration in a foreign currency.

The Interpretation clarifies that “the date of the transaction” is the date on initial recognition of the non-monetary asset or liability arising from the payment or receipt of advance consideration. If there are multiple payments or receipts in advance of recognising the related item, the date of the transaction for each payment or receipt should be determined in this way. The adoption of IFRIC 22 does not have any material impact on the financial position and the financial result of the Company and its subsidiaries.


(c)Consolidation

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

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

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

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

F-12F-19

2Principal accounting policies (Continued)

(b)Consolidation (Continued)

(i)Business combinations

The acquisition method is used to account for the business combinations of the Company and its subsidiaries (including business combinations under common controls). The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Company and its subsidiaries. TheAny contingent consideration transferred includesis measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each reporting date and subsequent changes in the fair value of any asset or liability resulting from athe contingent consideration arrangement.are recognised in profit or loss.  Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Company and its subsidiaries recognizerecognise any non-controlling interests in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the recognizedrecognised amounts of acquiree’s identifiable net assets. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill (Note 2(i)2(k)). If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognizedrecognised in profit or loss. In a business combination achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss or other comprehensive income, as appropriate. In prior reporting periods, the acquirer may have recognised changes in the value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was recognised in other comprehensive income shall be recognised on the same basis as would be required if the acquirer had disposed directly of the previously held equity interest.


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

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

When the Company and its subsidiaries lose control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognised in profit or loss. Any interest retained in that former subsidiary at the date when control is lost is recognised at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (Note 2(m)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture (Note 2(c)(iii)).

F-20


(iii)Associates and joint ventures

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

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

(b)Consolidation (Continued)

(iii)Associates and joint ventures (Continued)

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

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

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

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

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

F-21
If an investment in an associate becomes an investment in a joint venture or vice versa, retained interest is not remeasured. Instead, the investment continues to be accounted for under the equity method.

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

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

(b)Consolidation (Continued)

(iii)Associates and joint ventures (Continued)

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


(c)(d)Separate financial statements of the Company

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


(d)(e)Segment reporting

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

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


(e)(f)Foreign currency translation


(i)Functional and presentation currency

Items included in the financial statements of each of the Company and its subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in Renminbi (“RMB”), which is the Company’s functional and presentation currency.
F-15F-22

2Principal accounting policies (Continued)

(e)Foreign currency translation (Continued)

(ii)Transactions and balances

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


(iii)Foreign subsidiaries

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

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

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

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

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

F-16

2
Principal accounting policies (Continued)

(f)(g)Property, plant and equipment

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

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

F-23
Subsequent costs about property, plant and equipment are included in the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and its subsidiaries and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized.derecognised. Other subsequent expenditures not qualified for capitalization are charged in the current period profit or loss when they are incurred.

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

Estimated useful lives

Estimated useful lives
Dam8 – 50 years
Port facilities20 – 40 years
BuildingsBuildings8 – 30 years
Electric utility plant in service5 – 30 years
Transportation facilities8 – 27 years
OthersOthers5 – 14 years

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

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

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

F-17F-24

2
Principal accounting policies (Continued)(h)Investment property

Investment properties are land and/or buildings which are owned or held under a leasehold interest (Note 2(ab)) to earn rental income and/or for capital appreciation. These include land held for a currently undetermined future use and property that is being constructed or developed for future use as investment property.

Investment properties are stated at fair value, unless they are still in the course of construction or development at the end of the reporting period and their fair value cannot be reliably measured at that time. Any gain or loss arising from a change in fair value or from the retirement or disposal of an investment property is recognised in profit or loss. Rental income from investment properties is accounted for as described in Note 2(z)(vi).


(g)(i)Power generation license

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


(h)(j)Mining rights

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


(i)(k)Goodwill

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

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

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

F-25


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

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

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

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

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

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

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

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


(k)(m)Financial instruments


APolicy applicable from 1 January 2018


(i)Recognition and initial measurement

All financial assets and financial liabilities are initially recognised when the Company and its subsidiaries become a party to the contractual provisions of the instrument.

A financial asset (unless it is a receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A receivable without a significant financing component is initially measured at the transaction price.
F-26


(ii)Classification and subsequent measurement of financial assets


(1)Classification of financial assets

On initial recognition, the Company and its subsidiaries categorise financial assets into three principal classification categories: measured at amortised cost, at fair value through other comprehensive income (FVOCI) and at fair value through profit or loss (FVTPL) based on the business model under which the financial asset is managed and its contractual cash flow characteristics.

Financial assets are not reclassified subsequent to their initial recognition unless the Company and its subsidiaries change its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:


-it is held within a business model whose objective is to hold assets to collect contractual cash flows; and


-its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial assets is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:


-it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and


-its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company and its subsidiaries may make an irrevocable election to designate the investment at FVOCI (non-recycling) such that subsequent changes in fair value are recognised in other comprehensive income. Such elections are made on an instrument-by-instrument basis, but may only be made if the investment meets the definition of equity from the issuer’s perspective.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
F-27

An entity’s business model refers to how an entity manages its financial assets in order to generate cash flows. The entity’s business model determines whether cash flows will result from collecting contractual cash flows, selling financial assets or both. The Company and its subsidiaries determine the business model for managing the financial assets according to the facts and based on the specific business objective determined by the Company and its subsidiaries’ key management personnel.

The Company and its subsidiaries assess the contractual cash flow characteristics of the financial asset whether contractual cash flows are solely payments of principal and interest. Principal is defined as the fair value of the financial asset on initial recognition. Interest is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin. The Company and its subsidiaries assess whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition.


(2)Subsequent measurement of financial assets


-Financial assets at FVTPL
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss, unless the financial assets are part of a hedging relationship.


-Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method. A gain or loss on a financial asset that is measured at amortised cost and is not part of a hedging relationship shall be recognised in profit or loss when the financial asset is derecognised, through the amortisation process or in order to recognise impairment gains or losses.


-Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, impairment and foreign exchange gains and losses are recognised in profit or loss. Other net gains and losses are recognised in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.


-Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss. Other net gains and losses are recognised in OCI and are transferred to retained earnings on derecognition.

F-28


(iii)Classification and subsequent measurement of financial liabilities

Financial liabilities are classified as measured at FVTPL, financial guarantee contracts or measured at amortised cost.


-Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including derivative financial liability) or it is designated as such on initial recognition.

These liabilities are subsequently measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss, unless the financial liabilities are part of a hedging relationship.


-Financial guarantee contracts
Financial guarantees are contracts that require the issuer (i.e. the guarantor) to make specified payments to reimburse the beneficiary of the guarantee (the “holder”) for a loss the holder incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument.

After initial recognition at fair value, an issuer of such a contract shall subsequently measure it at the higher of: (i) the amount of the loss allowance determined in accordance with Note 2(m)A(vi) and (ii) the amount initially recognised less, when appropriate, the cumulative amount of income recognised.


-Financial liabilities at amortised cost
These liabilities are subsequently measured at amortised cost using the effective interest method.


(iv)Offsetting

Financial assets and financial liabilities are separately presented in the statement of financial position without offsetting. However, financial assets and financial liabilities are offset when, and only when the Company and its subsidiaries:


-currently have a legally enforceable right to set off the amounts;

-intend either to settle them on a net basis or to realise the asset and settle the liability simultaneously.


(v)Derecognition

The Company and its subsidiaries derecognise a financial asset when one of the following conditions is met:


-the contractual rights to the cash flows from the financial asset expire;


-the Company and its subsidiaries transfer the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred;


-the Company and its subsidiaries transfer the rights to receive the contractual cash flows in a transaction in which the the Company and its subsidiaries neither transfer nor retain substantially all of the risks and rewards of ownership and do not retain control of the financial asset.

F-29

On derecognition of a financial asset its entirety, the difference between the two amounts below is recognised in profit or loss:


-the carrying amount of the financial asset transferred (measured at the date of derecognition) and


-the consideration received, along with the cumulative gain or loss previously recognised in other comprehensive income, for the part derecognised.

The Company and its subsidiaries derecognise a financial liability (or  part of it) when, and only when, its contractual obligation (or part of it) is discharged, cancelled or expired.


(vi)Credit losses

The Company and its subsidiaries recognise loss allowance for ECL on the following items:

-financial assets measured at amortised cost;

-contract assets as defined in IFRS 15 (see Note 2(z));

-debt investments measured at FVOCI;

-lease receivables; and

-financial guarantee contracts issued, which are not measured at FVTPL.

Financial assets measured at fair value, including debt investments or equity investments measured at FVTPL, other equity investments designated at FVOCI (non-recycling) and derivative financial assets, are not subject to the ECL assessment.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all expected cash shortfalls (i.e. the difference between the cash flows due to the Company and its subsidiaries in accordance with the contract and the cash flows that the Company and its subsidiaries expect to receive).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company and its subsidiaries are exposed to credit risk.

In measuring ECLs, the Company and its subsidiaries take into account reasonable and supportable information that is available without undue cost or effort. This includes information about past events, current conditions and forecasts of future economic conditions.

ECLs are measured on either of the following bases:

-12-month ECLs: these are losses that are expected to result from possible default events within the 12 months after the reporting date; and

-lifetime ECLs: these are losses that are expected to result from all possible default events over the expected lives of the items to which the ECL model applies.

Loss allowances for accounts receivable, lease receivables and contract assets are always measursed at an amount equal to lifetime ECLs.  ECLs on these financial assets are estimated using a provision matrix based on the Company and its subsidiaries’ historical credit loss experience, adjusted for factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions at the reporting date.
F-30

For all other financial instruments, the Company and its subsidiaries recognise a loss allowance equal to 12-month ECLs unless there has been a significant increase in credit risk of the financial instrument since initial recognition or the financial instrument is not determined to have low credit risk at the reporting date, in which cases the loss allowance is measured at an amount equal to lifetime ECLs.

Low credit risk

If the financial instrument has a low risk of default, the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations, the credit risk on a financial instrument is considered low.

Significant increases in credit risk

In assessing whether the credit risk of a financial instrument has increased significantly since initial recognition, the Company and its subsidiaries compare the risk of default occurring on the financial instrument assessed at the reporting date with that assessed at the date of initial recognition. The Company and its subsidiaries consider both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort.

In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition:

-failure to make payments of principal or interest on their contractually due dates;

-an actual or expected significant deterioration in a financial instrument’s external or internal credit rating (if available);

-an actual or expected significant deterioration in the operating results of the debtor; and

-existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse effect on the debtor’s ability to meet its obligation to the Company and its subsidiaries.

Depending on the nature of the financial instruments, the assessment of a significant increase in credit risk is performed on either an individual basis or a collective basis. When the assessment is performed on a collective basis, the financial instruments are grouped based on shared credit risk characteristics, such as past due status and credit risk ratings.

The Company and its subsidiaries assume that the credit risk on a financial asset has increased significantly if it is more than 30 days past due, unless the Company and its subsidiaries have reasonable and supportable information that is available without undue cost or effort, that demonstrates that the credit risk has not increased significantly since initial recognition even though the contractual payments are more 30 days past due.

The Company and its subsidiaries consider a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company and its subsidiaries in full, without recourse by the Company and its subsidiaries to actions such as realising security (if any is held).
F-31

Credit-impaired financial assets

At each reporting date, the Company and its subsidiaries assess whether  financial assets carried at amortised cost and debt investments at FVOCI are credit-impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable events:

-significant financial difficulties of the debtor;

-a breach of contract, such as a default or delinquency in interest or principal payments;

-for economic or contractual reasons relating to the borrower’s financial difficulty, the Company and its subsidiaries having granted to the borrower a concession that would not otherwise consider;

-it becoming probable that the borrower will enter into bankruptcy or other financial reorganisation;

-the disappearance of an active market for that financial asset because of financial difficulties of the issuer.

Presentation of allowance for ECL

ECLs are remeasured at each reporting date to reflect changes in the financial instrument’s credit risk since initial recognition. Any change in the ECL amount is recognised as an impairment gain or loss in profit or loss.

The Company and its subsidiaires recognises an impairment gain or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for debt investments that are measured at FVOCI (recycling), for which the loss allowance is recognised in other comprehensive income.

Write-off policy

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition event. This is generally the case when the Company and its subsidiaries determine that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the the Company and its subsidiaries’ procedures for recovery of amounts due.

Subsequent recoveries of an asset that was previously written off are recognised as a reversal of impairment in profit or loss in the period in which the recovery occurs.


(vii)Cash flow hedge

Cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with all, or a component of, a recognised asset or liability or a highly probable forecast transaction, and could affect profit or loss.

F-32
The hedged items of cash flow hedge are the designated items with respect to the risks associated with future cash flow changes, and can be reliably measurable. Hedging instruments are designated financial instruments for cash flow hedge whose cash flows are expected to offset changes in the cash flows of a hedged item.

When designating a hedging relationship and on an ongoing basis, the Company and its subsidiaries shall analyse the sources of hedge ineffectiveness that are expected to affect the hedging relationship during its term. If a hedging relationship ceases to meet the hedging effectiveness requirement relating to the hedge ratio, but the risk management objective for that designated hedging relationship remains the same, the Company and its subsidiaries shall adjust the hedge ratio of the hedging relationship, so that it meets the qualifying criteria again, which is referred as rebalancing.

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income and accumulated in the cash flow hedge reserve. Cash flow hedge reserve is adjusted to the lower of the following:

-the cumulative gain or loss on the hedging instrument from inception of the hedge; and

-the present value of the cumulative change in the hedged expected future cash flows from inception of the hedge.

The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be recognised in other comprehensive income. Any remaining gain or loss on the hedging instrument is hedge ineffectiveness that shall be recognised in profit or loss.

On rebalancing, the hedge ineffectiveness of the hedging relationship is determined and recognised immediately before adjusting the hedging relationship. Adjusting the hedge ratio allows an entity to respond to changes in the relationship between the hedging instrument and the hedged item that arise from their underlyings or risk variables. The Company and its subsidiaries adjust the hedge ratio by increasing the volume of the hedged items or hedging instruments. Hence, increases in volumes refer to the quantities that are part of the hedging relationship, and decreases in volumes are not part of the hedging relationship.

The amount accumulated in the hedging reserve and the cost of hedging reserve is reclassified to profit or loss in the same period or periods during which the hedged expected future cash flows affect profit or loss.

When the hedged forecast transaction subsequently results in the recognition of a non-financial item, the amount accumulated in the hedging reserve and the cost of hedging reserve is included directly in the initial cost of the non-financial item when it is recognised.

If the amount that has been accumulated in the cash flow hedge reserve is a loss and the Company and its subsidiaries expect that all or a portion of that loss will not be recovered in one or more future periods, the Company and its subsidiaries immediately reclassify the amount that is not expected to be recovered into profit or loss.

F-33
When the Company and its subsidiaries discontinue hedge accounting for a cash flow hedge, the Company and its subsidiaries account for the amount that has been accumulated in the cash flow hedge reserve as follows:

-if the hedged future cash flows are still expected to occur, that amount shall remain in the cash flow hedge reserve until the future cash flows occur.

-if the hedged future cash flows are no longer expected to occur, that amount shall be immediately reclassified from the cash flow hedge reserve to profit or loss. A hedged future cash flow that is no longer highly probable to occur may still be expected to occur.

When the future cash flows occur, the amounts accumulated in the hedging reserve of the effective portion are reclassified to profit or loss or included directly in the initial cost of the non-financial item. If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in the hedging reserve and the cost of hedging reserve are immediately reclassified to profit or loss.


BPolicy applicable prior to 1 January 2018

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


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

Financial assets at fair value through profit or loss include financial assets held for trading and designated upon initial recognition as at fair value through profit or loss.loss, and contingent consideration of the acquirer in a business combination. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term.short-term. Derivatives are classified as held for trading unless they are designated as hedges.

Assets in this category are classified as current assets if expected to be settled within 12 months; otherwise, they are classified as non-current.


(ii)Loans and receivables

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

2Principal accounting policies (Continued)

(k)Financial assets (Continued)

(iii)Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories. They are included in current assets when management intends to dispose of the available-for-sale financial assets within 12 months of the end of reporting period.period, otherwise, they are classified as non-current assets.
F-34


(iv)Recognition and measurement

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

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

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

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

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

2Principal accounting policies (Continued)

(k)Financial assets (Continued)

(v)Impairment of financial assets

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

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

In the case of equity investments classified as available for sale, a significant or prolonged decline in the fair value of the investment below its cost is evidence that the assets are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss, measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognizedrecognised in profit or loss, is removed
F-35
from equity and recognizedrecognised in profit or loss. Impairment losses recognizedrecognised in the profit or loss on equity instruments are not reversed through the profit or loss.

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


(vi)Derivative financial instruments and hedging activities

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

F-21

2Principal accounting policies (Continued)

(k)Financial assets (Continued)

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

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

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

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

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

Amounts accumulated in equity are reclassified to the profit or loss in the periods when the hedged item affects profit or loss. The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognizedrecognised in the statement of comprehensive income within ‘interest
F-36
expense’. The gain or loss relating to the effective portion of exchange forward hedging foreign currency denominated payables is recognizedrecognised in the statement of comprehensive income within ‘exchange gain/(loss) and bank charges, net’. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset. In the case where the Company and its subsidiaries expect all or a portion of net loss previously recognizedrecognised directly in other comprehensive income will not be recovered in future financial periods, the irrecoverable portion will be reclassified into profit or loss.

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

F-22

2
Principal accounting policies (Continued)

(l)(n)Loans and receivables

The Company and its subsidiaries have assessed the business model under which the loans and receivables are managed and its contractual cash flow characteristics, and these financial assets continue with their respective classification and measurements upon the adoption of IFRS 9, please refer to Note 2(m)A(ii). For the impairment test of receivables, please refer to Note 2(m)A(vi).

Policy applicable prior to 1 January 2018

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

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

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

F-37


(m)(o)Inventories

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

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

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

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

(n)(p)Related parties

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


(o)(q)Cash and cash equivalents

Cash and cash equivalents listed in the statement of cash flows represents cash in hand, call deposits held with banks and other financial institutions, and other short-term (3 months or less), highly-liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Bank overdrafts that are repayable on demand and form an integral part of the cash management are also included as a component of cash and cash equivalents for the purpose of the consolidated statement of cash flow. Cash and cash equivalents are assessed for expected credit losses in accordance with the policy set out in Note 2(m)A(vi).


(p)(r)Borrowings

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

F-38


(q)(s)Borrowing costs

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

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

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


(r)(t)Share Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.


(u)Other equity instruments

Perpetual corporate bond and other equity instruments are classified as equity if they are non-redeemable, or redeemable only at the Company’s option, and any interests or dividends are discretionary. Interests or dividends on such instruments classified as equity are recognised as distributions within equity. When these equity instruments are redeemed according to the contractual terms, the redemption price is charged to equity.


(v)Payables

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

F-24

2
Principal accounting policies (Continued)

(s)(w)Taxation


(i)Value-added tax (“VAT”)

The domestic power, heat and coalgoods sales of the Company and its subsidiaries are subject to VAT. VAT payable is determined by applying 17% (or 13%or 16% (11% or 10% on heat) on the taxable revenue after offsetting deductible input VAT of the period.

The applicable tax rate of VAT in respect of the lease of tangible movable properties, transportation industry and other modern services industry are 17% or 16%, 11% or 10% and 6%, respectively.

According to the relevant regulations of Ministry of Finance of PRC and State Administration of Taxation, the transformation from Business Tax to VAT launched nation-wide from 1 May 2016 and all business tax taxpayers in the construction industry, real estate industry, financial industry, living services were included. The applicable tax rate of VAT in respect of sectors including
F-39
construction services, lease of immovables, sale of immovables and transfer of land use rights is 11%, and in respect of financial and living services is 6%.


(ii)Goods and service tax (“GST”)

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

The subsidiaries in Pakistan are subject to goods and service tax of the country where they operate, which is 16% on the taxable revenue.


(iii)Current and deferred income tax

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

Deferred income tax assets and liabilities are recognizedrecognised based on the differences between tax bases of assets and liabilities and respective book values (temporary differences). For deductible tax losses or tax credit that can be brought forward in accordance with tax law requirements for deduction of taxable income in subsequent years, it is considered as temporary differences and related deferred income tax assets are recognized.recognised. No deferred income tax liability is recognizedrecognised for temporary difference arising from initial recognition of goodwill. For those temporary differences arising from initial recognition of an asset or liability in a non-business combination transaction that affects neither accounting profit nor taxable profit (or deductible loss) at the time of the transaction, no deferred income tax asset and liability is recognized.recognised. The temporary differences relating to investments in subsidiaries to the extent that, in the case of taxable differences, the Company and its subsidiaries control the timing of the reversal and it is probable that the differences will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future.
F-25

2Principal accounting policies (Continued)

(s)Taxation (Continued)

(iii)Current and deferred income tax (Continued)

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

At the end of reporting period, deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realizedrealised or liability is settled.

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

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


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

F-40

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


(t)(x)Employee benefits

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

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

F-26
2
Principal accounting policies (Continued)

(u)(y)Government grants

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

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

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


(v)(z)Revenue and other income recognition

Revenue and income are recognized basedIncome is increases in economic benefits during the following methods:accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.

Revenue and income are recognizedis recognised when it is probable that the economic benefits associated with the transaction will flow to(or as) the Company and its subsidiaries andsatisfy a performance obligation in the amount ofcontract by transferring the revenue and income can be measured reliably.control over promised good or service to a customer.

(i)Electricity sales revenue

Electricity sales revenue represents the fair value of the consideration receivedWhen two or receivable for electricity sold in the ordinary course of the activities ofmore performance obligations identified, the Company and its subsidiaries (netallocate the transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis at contract inception and recognise as revenue the amount of VATthe transaction price that is allocated to that performance obligation.

F-41
Transaction price is the amount of consideration to which the Company and its subsidiaries expect to be entitled in exchange for transferring promised goods or GST).services to a customer, excluding amounts collected on behalf of third parties. Revenue is earnedonly recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The Company and recognizedits subsidiaries recognise a refund liability if the entity receives consideration from a customer and expects to refund some or all of that consideration to the customer. Where the contract contains a significant financing component, The Company and its subsidiaries recognise revenue at an amount that reflects the price that a customer would have paid for the promised goods or services if the customer had paid cash for those goods or services when (or as) they transfer to the customer. The difference between the promised amount of consideration and its present value is amortised using effective interest rate. The Company and its subsidiaries will not adjust the promised amount of consideration for the effects of a significant financing component if the Company and its subsidiaries expect, at contract inception, that the period between when the Company and its subsidiaries transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

A performance obligation is satisfied over time if one of the following criteria is met:

-When the customer simultaneously receives and consumes the benefits provided by the Company and its subsidiaries’ performance, as the Company and its subsidiaries perform;

-When the Company and its subsidiaries’ performance creates or enhances an asset that the customer controls as the asset is created or enhanced;

-When the Company and its subsidiaries’ performance does not create an asset with an alternative use to the entity and the Company and its subsidiaries have an enforceable right to payment for performance completed to date.

For performance obligations satisfied over time, revenue is recognised on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract. When the outcome of the contract cannot be reasonably measured, revenue is recognised only to the extent of contract costs incurred that are expected to be recovered.

For performance obligations satisfied at a point in time, revenue is recognised when the customer obtains control of the promised good or service in the contract. The Company and its subsidiaries consider indicators of the transfer of control, which include, but are not limited to, the following:

-The Company and its subsidiaries have a present right to payment for the asset;

-The Company and its subsidiaries have transferred physical possession of the asset;

-The customer has legal title to the asset or the significant risks and rewards of ownership of the asset;

-The customer has accepted the asset.

A contract asset is the Company and its subsidiaries’ right to consideration in exchange for goods or services that the Company and its subsidiaries have transferred to a customer when that right is conditioned on something other than the passage of time and an impairment of a contract asset is measured using ECL model (Note 2(m)A(vi)). The Company and its subsidiaries present any unconditional rights to consideration separately as a receivable. The Company and its subsidiaries’ obligation to transfer goods or services to a customer for which the Company and its subsidiaries have received consideration (or the amount is due) from the customer is present as a contract liability.

Further details of revenue and income recognition policies are as follow:


(i)Sales of power

F-42
Revenue is recognised upon transmission of electricity to the customers or the power grid controlled and owned bywhere the respective regional or provincial grid companies.control of the electricity is transferred at the same time.


(ii)Coal sales revenueSales of heat

Coal sales revenue represents the fair valueRevenue is recognised upon transmission of the consideration received or receivable for the sale of the coal in the ordinary course of the activities of the Company and its subsidiaries. Coal sales revenue is recognized when the coal is deliveredheat to the customers and there is no unfulfilled obligation that could affectwhere the customer’s acceptancecontrol of the coal.heat is transferred at the same time.


(iii)Service revenue

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


(iv)Coal and raw materials sales revenue

Revenue is recognised when the control of the fuel and materials is transferred to the customers.


(v)Heating pipeline upfront fees

Revenue from upfront fees received from heat customers related to the heating pipeline is recognised during the period in which the heat supply service is provided.


(vi)Rental income from operating leases

Rental income receivable under operating leases is recognised in profit or loss in equal instalments over the periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the use of the leased asset. Lease incentives granted are recognised in profit or loss as an integral part of the aggregate net lease payments receivable. Contingent rentals are recognised as income in the accounting period in which they are earned.


(vii)Dividend income

Dividend income from unlisted investments is recognizedrecognised when the shareholder’s right to receive payment is established. Dividend income from listed investments is recognizedrecognised when the share price of the investment goes ex-dividend.
F-27

2
Principal accounting policies (Continued)

(v)Revenue and income recognition (Continued)

(v)(ix)Interest income

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

F-43


(w)(aa)Contract cost

Contract costs are either the incremental costs of obtaining a contract with a customer or the costs to fulfil a contract with a customer.

Incremental costs of obtaining a contract are those costs that the Company and its subsidiaries incur to obtain a contract with a customer that it would not have incurred if the contract had not been obtained e.g. an incremental sales commission. Incremental costs of obtaining a contract are capitalised when incurred if the costs relate to revenue which will be recognised in a future reporting period and the costs are expected to be recovered. Other costs of obtaining a contract are expensed when incurred.

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard such as IAS 2 Inventories, the Company and its subsidiaries recognise an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

-the costs relate directly to an existing contract or to a specifically identifiable anticipated contract, including direct labor, direct materials, allocations of costs, costs that are explicitly chargeable to the customer and other costs that are incurred only because the the Company and its subsidiaries entered into the contract;

-the costs generate or enhance resources that will be used to provide goods or services in the future;

-the costs are expected to be recovered.

Amortisation of capitalised contract costs is charged to profit or loss when the revenue to which the asset relates is recognised. The accounting policy for revenue recognition is set out in Note 2(z). Contract costs are recognised as an expense when incurred if the amortisation period of the asset that the Company and its subsidiaries otherwise would have recognised is one year or less.

Impairment losses are recognised to the extent that the carrying amount of the contract cost asset exceeds the net of:

(i)remaining amount of consideration that the Company and its subsidiaries expect to receive in exchange for the goods or services to which the asset relates, less

(ii)any costs that relate directly to providing those goods or services that have not yet been recognised as expenses.


(ab)Leases

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


(i)Operating leases (lessee)

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

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

F-44


(ii)Finance lease

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

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

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

F-28

2
Principal accounting policies (Continued)

(x)(ac)Purchase of electricity

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


(y)(ad)Financial guarantee contractsNon-current assets (or disposal group) held for sale

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

Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial guarantee contracts that transfer significant insurance risk. Financial guarantee contracts are those contracts that require the issuerassets or deferred tax assets, which continue to make specified payments to reimburse the holders for losses they incur because specified debtors fail to make payments when duebe measured in accordance with the original or modified terms of debt instruments. Where the Company issues a financial guarantee, the fair value of the guarantee is initially recognizedand its subsidiaries’ other accounting policies. Impairment losses on initial classification as deferred income within accounts payableheld-for-sale and other liabilities. The fair value of financial guarantees issued at the time of issuance is determined by reference to fees charged in an arm’s length transaction for similar services, when such information is obtainable, or is otherwise estimated by reference to interest rate differentials, by comparing the actual rates charged by lenders when the guarantee is made available with the estimated rates that lenders would have charged, had the guarantees not been available, where reliable estimates of such information can be made. Where consideration is received or receivable for the issuance of the guarantee, the consideration is recognized in accordance with the Company’s policies applicable to that category of asset. Where no such consideration is received or receivable, an immediate expense is recognizedsubsequent gains and losses on remeasurement are recognised in profit or loss on initial recognition of any deferred income. The amount of the guarantee initially recognized as deferred income is amortized in profit or loss over the term of the guarantee as income from financial guarantees issued.loss.

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


(z)(ae)Dividend distribution

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

F-45


(aa)(af)Contingencies

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


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

The following areUp to the date of issue of these financial statements, a number of amendments, new standards or amendments to existing standards thatand interpretations have been publishedissued which are not yet effective for the year ended 31 December 2018 and are mandatorywhich have not been adopted in these financial statements. These include the following which may be relevant to the Company and its subsidiaries.

IFRS 16, “Leases”, which will be effective for the accounting periods beginning on or after 1 January 2017, but the Company2019.
IFRIC 23, “Uncertainty over income tax treatments”, which will be effective for accounting periods beginning on or after 1 January 2019.
Annual improvements to IFRSs 2015-2017 Cycle, which will be effective for accounting periods beginning on or after 1 January 2019.
Amendments to IFRS 28, “Long-term interests in associates and its subsidiaries have not early adopted:

F-29joint ventures”, which will be effective for accounting periods beginning on or after 1 January 2019.

2Principal accounting policies (Continued)

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

·Amendments to IAS 7, ‘Disclosure initiative’, which will be effective for accounting periods beginning on or after 1 January 2017.
·Amendments to IAS 12, ‘Income taxes - Recognition of deferred tax assets for unrealised losses’, which will be effective for accounting periods beginning on or after 1 January 2017.
·IFRIC 22, ‘Foreign currency transactions and advance consideration’, which will be effective for accounting periods beginning on or after 1 January 2018.
·IFRS 15, ‘Revenue from contracts with customers’, which will be effective for accounting periods beginning on or after 1 January 2018.
·IFRS 9, ‘Financial instrument (2014)’, which will be effective for accounting periods beginning on or after 1 January 2018.
·IFRS 16, ‘Leases’, which will be effective for accounting periods beginning on or after 1 January 2019.
The Company and its subsidiaries are in the process of making an assessment of what the impact of these amendments, and new standards and interpretations is expected to be in the period of initial application. So far itthe Company and its subsidiaries have identified some aspects of IFRS 16 which may have a significant impact on the consolidated financial statements. Further details of the expected impacts are discussed below. While the assessment has concluded thatbeen substantially completed for IFRS 16, the actual impact upon the initial adoption of this standard may differ as the standardsassessment completed to date is based on the information currently available to the Company and its subsidiaries, and further impacts may be identified before the standard is initially applied in the Company and its subsidiaries’ interim financial report for the six months ended 30 June 2019. The Company and its subsidiaries may also change its accounting policy elections, including the transition options, until the standard is initially applied in that financial report.

IFRS 16, Lease

As disclosed in Note 2(ab), currently the Company and its subsidiaries classify leases into finance leases and operating leases and account for the lease arrangements differently, depending on the classification of the lease. The Company and its subsidiaries enter into some leases as the lessor and others as the lessee.

IFRS 16 is not expected to impact significantly on the way that lessors account for their rights and obligations under a lease. However, once IFRS 16 is adopted, lessees will no longer distinguish between finance leases and operating leases. Instead, subject to practical expedients, lessees will account for all leases in a similar way to current finance lease accounting, i.e. at the commencement date of the lease the lessee will recognise and measure a lease liability at the present value of the minimum future lease payments and will recognise a corresponding “right-of-use” asset. After initial recognition of this asset and liability, the lessee will recognise interest expense accrued on the outstanding balance of the lease liability, and the depreciation of the right-of-use asset, instead of the current policy of recognising rental expenses incurred under operating leases on a systematic basis over the lease term. As a practical expedient, the lessee can elect not to apply this
F-46
accounting model to short-term leases (i.e. where the lease term is 12 months or amendmentsless) and to leases of low-value assets, in which case the rental expenses would continue to be recognised on a systematic basis over the lease term.

IFRS 16 will primarily affect the Company and its subsidiaries’ accounting as a lessee of leases for properties, plant and equipment which are currently classified as operating leases. The application of the new accounting model is expected to lead to an increase in both assets and liabilities and to impact on the timing of the expense recognition in the statement of comprehensive income over the period of the lease.

IFRS 16 is effective for accountingannual periods beginning on or after 1 January 20172019. As allowed by IFRS 16, the Company and its subsidiaries plan to use the practical expedient to grandfather the previous assessment of which existing arrangements are, or contain, leases. The Company and its subsidiaries will therefore apply the new definition of a lease in IFRS 16 only to contracts that are entered into on or after the date of initial application. In addition, the Company and its subsidiaries plan to elect the practical expedient for not applying the new accounting model to short-term leases and leases of low-value assets.

The Company and its subsidiaries plan to elect to use the modified retrospective approach for the adoption of IFRS 16 and will recognise the cumulative effect of initial application as an adjustment to the opening balance of equity at 1 January 2019 and will not restate the comparative information. As disclosed in Note 40(b), at 31 December 2018 the Company and its subsidiaries’ future minimum lease payments under non-cancellable operating leases amount to RMB1,647 million for property, plant and equipment and land use rights, the majority of which is unlikelypayable either between 1 and 5 years after the reporting date or in more than 5 years. Upon the initial adoption of IFRS 16, the opening balances of lease liabilities and the corresponding right-of-use assets will be adjusted accordingly, after taking into account the effects of discounting, as at 1 January 2019. The Company and its subsidiaries are still in the process to determine the amounts of new assets and liabilities arising from operating lease commitments on adoption of IFRS 16.

There are no other amendments and new standards that are not yet effective that would be expected to have a significantmaterial impact on the Company and its subsidiaries’ results of operations andconsolidated financial position. As the Company and its subsidiaries have not completed its assessment, further impacts may be identified in due course and will be taken into consideration when determining whether to adopt any of these new requirements before their effective date and which transitional approach to take, when there are alternative approaches allowed under the new standards.statements.

3Financial and capital risks management


(a)Financial risk management

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

SinoSing Power and its subsidiaries and Huaneng Shandong Ruyi (Pakistan) Energy (Private) Co., Ltd. (“Ruyi Pakistan Energy”), the subsidiary of Hong Kong Energy, are subject to financial risks that are different from the entities operating within the PRC. They have a series of controls in place to maintain the cost of risks occurring and the cost of managing the risks at an acceptable level. Management continually monitors the risk management process to ensure that an appropriate balance between risk and control is achieved. SinoSing Power and its subsidiaries and Ruyi Pakistan Energy have their written policies and financial authorizationauthorisation limits in place which are reviewed periodically. These financial authorization limits seek to mitigate and eliminate operational risks by setting approval thresholds required for entering into contractual obligations and investments.

F-30F-47

3Financial and capital risks management (Continued)

(a)Financial risk management (Continued)

(i)Market risk


(1)Foreign exchange risk

Foreign exchange risk of the entities operating within the PRC primarily arises from loans denominated in foreign currencies of the Company and its subsidiaries. SinoSing Power and its subsidiaries are exposed to foreign exchange risk on bank balances, accounts receivable, other receivables and assets, accounts payable and other payablesliabilities that are denominated primarily in US$, a currency other than Singapore dollar (“S$”), their functional currency. Ruyi Pakistan Energy is exposed to foreign exchange risk on bank balances, financial lease receivables, accounts payable and other liabilities, short-term loans and long-term loans that are denominated primarily in US$, a currency other than Pakistan rupee (“PKR”), their functional currency. Please refer to Note 2316, 18, 19, 25, 28, 31 and 2636 for details. The Company and its subsidiaries manage exchange risk through closely monitoring interest and exchange market.

As at 31 December 2016,2018, if RMB had weakened/strengthened by 5% (2015:(2017: 5%) against US$ and 3% (2015:(2017: 3%) against EUR (“€”) with all other variables constant, the Company and its subsidiaries would further recognizerecognise exchange loss/gain amounted RMB142RMB98 million (2015: RMB144(2017: RMB112 million) and RMB9RMB5 million (2015: RMB10(2017: RMB7 million), respectively. The ranges of such sensitivity disclosed above were based on the observation on the historical trend of related exchange rates during the previous year under analysis.

As at 31 December 2016,2018, if S$ had weakened/strengthened by 10% (2015: (2017:10%) against US$ with all other variables constant, the CompanySinoSing Power and its subsidiaries would further recognizerecognise exchange loss/gaingain/loss amounted RMB10RMB6 million (2015: RMB2(2017:RMB30 million). The ranges of such sensitivity disclosed above were based on the management’s experience and forecast.

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

As at 31 December 2018, if PKR had weakened/strengthened by 5% (2017:Nil) against US$ with all other variables constant, Ruyi Pakistan Energy would further recognise exchange gain/loss amounted RMB47 million (2017:Nil). The ranges of such sensitivity disclosed above were based on the management’s experience and forecast.

Ruyi Pakistan Energy is exposed to foreign exchange risk on long-term loans payment that are denominated primarily in US$. Ruyi Pakistan Energy entered into an agreement on tariff adjustment mechanism with Central Power Purchasing Agency (Guarantee) Limited ( “CPPA-G” ) and the tariff adjustment mechanism was approved by National Electric Power Regulatory Authority. The mechanism mitigates foreign exchange risk by decreasing or increasing electricity tariff when the PKR strengthens or weakens against US$.


(2)Price risk

The available-for-sale financial assetsother equity instrument investments of the Company and its subsidiaries designated as FVTOCI are exposed to equity security price risk.

F-48
Detailed information relating to the available-for-sale financial assetsother equity instrument investments is disclosed in Note 10. The Company has a supervisor in the supervisory committee of the most significant investment in available-for-sale financial assets (China Yangtze Power Co., Ltd. (“Yangtze Power”)) and may exercise protective rights. The Company also closely monitors the pricing trends in the open market in determining its long-term strategic stakeholding decisions.

The Company and its subsidiaries are exposed to fuel price risk on fuel purchases. In particular, SinoSing Power and its subsidiaries use fuel oil swap to hedge against such a risk and designate them as cash flow hedges. Please refer to Note 14 for details.
F-31

3Financial and capital risks management (Continued)

(a)Financial risk management (Continued)

(i)Market risk (Continued)

(3)Cash flow interest rate risk

The interest rate risk of the Company and its subsidiaries primarily arises from long-term loans. Loans borrowed at variable rates expose the Company and its subsidiaries to cash flow interest rate risk. The exposures of these risks are disclosed in Note 2325 to the financial statements. The Company and its subsidiaries have entered into interest rate swap agreements with banks to hedge against a portion of cash flow interest rate risk.

As at 31 December 2016,2018, if interest rates on RMB-denominated borrowings had been 50 basis points higher/lower with all other variables held constant, interest expense for the year would have been RMB520RMB786 million (2015: RMB410(2017: RMB789 million) higher/lower. If interest rates on US$-denominated borrowings had been 50 basis points higher/lower with all other variables held constant, interest expense for the year would have been RMB7RMB54 million (2015: RMB8(2017: RMB6 million) higher/lower. If interest rates on S$-denominated borrowings had been 100 basis points higher/lower with all other variables held constant, interest expense for the year would have been RMB59RMB74 million (2015: RMB60(2017: RMB72 million) higher/lower. If interest rates on PKR-denominated borrowings had been 50 basis points higher/lower with all other variables held constant, interest expense for the year would have been RMB 2 million (2017:Nil ) higher/lower. The ranges of such sensitivity disclosed above were based on the observation on the historical trend of related interest rates during the previous year under analysis.

The Company has entered into a floating-to-fixed interest rate swap agreement to hedge against cash flow interest rate risk of a loan. According to the interest rate swap agreement, the Company agrees with the counterparty to settle the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional amounts quarterly until 2019. Tuas Power Generation PtePte. Ltd. (“TPG”) and TP-STM Water Resources Pte. Ltd. (“TPSTMWR”) also entered into a number of floating-to-fixed interest rate swap agreements to hedge against cash flow interest rate risk of  a loan. loans.

According to the interest rate swap agreements, TPG agrees with the counterparty to settle the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional amount semi-annually until 2020. TPSTMWR agrees with the counterparty to settle the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional amount quarterly until 2044. Please refer to Note 14 for details.

F-49


(ii)Credit risk

Credit risk arises from bank deposits, accounts receivable, contract assets, other receivables and assets and other non-current assets. The maximum exposures of contract assets, other non-current assets, other receivables and assets, accounts receivable and bank deposits are disclosed in Note 5(c), 16, 18, 19 and 3436 to the financial statements, respectively.

Bank deposits are placed with reputable banks and financial institutions. In addition, a significant portion is deposited with a non-bank financial institution which is a related party of the Company. The Company has a director on the Board of this non-bank financial institution and exercises influence. Corresponding maximum exposures of these bank deposits are disclosed in Note 35(a)37 (a)(i) to the financial statements.
F-32

3Financial and capital risks management (Continued)

(a)Financial risk management (Continued)

(ii)Credit risk (Continued)

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

Singapore subsidiaries derive revenue mainly from sale of electricity to the National Electricity Market of Singapore operated by Energy Market Company PtePte. Ltd., which does not have high credit risk. Singapore subsidiaries also derive revenue mainly from retailing electricity to consumers with monthly consumption of more than 2,000kWh. These customers engage in a wide spectrum of manufacturing and commercial activities in a variety of industries. However, since 1 April 2018, Energy Market Authority commenced the soft launch of Open Electricity Market, where households and business can choose to buy electricity from a retailer with a price plan that meets their needs. Singapore subsidiaries hold cash deposits of RMB175.86RMB164.85 million (2015: RMB172.51(2017: RMB161.37 million) and guarantees from creditworthy financial institutions as a security from these customers.

Ruyi Pakistan Energy derives revenue from sale of electricity to CPPA-G, which does not have high credit risk.

Finance lease receivables are mainly from domestic related parties, business enterprises in Singapore and CPPA-G in Pakistan. As these related parties and local enterprises and government authority have a good track of records and no historical losses have incurred, the Company and its subsidiaries conclude these receivables have low credit risk and remote possibility of default. The ECL of the finance lease receivables are measured on the basis of lifetime ECLs.

The Company and its subsidiaries measures loss allowances for accounts receivable, other receivables and contract assets at an amount equal to lifetime ECLs, which is calculated using a provision matrix. Except for electricity sales, the Company and its subsidiaries’ historical credit loss experience does not indicate significantly different loss patterns for different customer segments, the loss allowance based on past due status is not further distinguished between the Company and its subsidiaries’ different customer bases.
F-50

       
Accounts receivable Gross carrying amount  Loss allowance 
       
Current (not past due)  28,101,923   30,616 
Within 1 year past due  1,188,215   901 
1 - 3 years past due  31,138   10,821 
More than 3 years past due  104,575   104,575 
   29,425,851   146,913 

       
Other receivables Gross carrying amount  Loss allowance 
       
Current (not past due)  1,486,979   2,076 
Within 1 year past due  -   - 
1 - 3 years past due  2,876   2,825 
More than 3 years past due  35,421   33,630 
   1,525,276   38,531 

Expected loss rates are based on actual loss experience over the past 5 years. These rates are adjusted to reflect differences between economic conditions during the period over which the historic data has been collected, current conditions and the Company and its subsidiaries’ view of economic conditions over the expected lives of the receivables.

F-51


(iii)Liquidity risk

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

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

Financial liabilities due within 12 months are presented as current liabilities in the statement of financial position. The cash flows of derivative financial liabilities and repayment schedules of the long-term loans and long-term bonds are disclosed in Note 14, 2325 and 24,26, respectively.


(b)Fair value estimation


(i)Fair value measurements

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

·
Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities.
·Level 2- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
·Level 3- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
F-33
Level 2- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

3Financial and capital risks management (Continued)
F-52

(b)Fair value estimation (Continued)

(i)Fair value measurements (Continued)

The following table presents the assets and liabilities that are measured at fair value at 31 December 2016.2018 on a recurring basis.

 Level 1  Level 2  Level 3  Total  Level 1  Level 2  Level 3  Total 
            
Recurring fair value measurements
            
                        
Assets
                        
Financial assets at fair value through profit or loss                        
– Trading derivatives (Note 14)  -   5,881   -   5,881   -   14   -   14 
– Contingent consideration  -   -   991,383   991,383 
                
Derivatives used for hedging (Note 14)  -   372,442   -   372,442   -   34,691   -   34,691 
Available-for-sale financial assets                
– Equity securities (Note 10)  1,820,713   -   -   1,820,713 
Other equity instrument investments (Note 10)  8,558   -   2,074,861   2,083,419 
                
Total assets  1,820,713   378,323   -   2,199,036   8,558   34,705   3,066,244   3,109,507 
                
Liabilities
                                
Financial liabilities at fair value through profit or loss                                
– Trading derivatives (Note 14)  -   619   -   619   -   17,752   -   17,752 
                
Derivatives used for hedging (Note 14)  -   334,119   -   334,119   -   527,540   -   527,540 
                
Total liabilities  -   334,738   -   334,738   -   545,292   -   545,292 

The following table presents the assets and liabilities that are measured at fair value at 31 December 2015.2017 on a recurring basis.


 Level 1  Level 2  Level 3  Total  Level 1  Level 2  Level 3  Total 
            
Recurring fair value measurements
            
                        
Assets
                        
Financial assets at fair value through profit or loss                        
– Trading derivatives (Note 14)  -   40,843   -   40,843   -   2,726   -   2,726 
– Contingent consideration  -   -   859,547   859,547 
                
Derivatives used for hedging (Note 14)  -   143,669   -   143,669   -   330,966   -   330,966 
                
Available-for-sale financial assets                                
– Equity securities (Note 10)  3,492,510   -   -   3,492,510 
– Equity securities (Note 10) (Note i)  9,223   -   -   9,223 
                
Total assets  3,492,510   184,512   -   3,677,022   9,223   333,692   859,547   1,202,462 
                
Liabilities
                                
Financial liabilities at fair value through profit or loss                                
– Trading derivatives (Note 14)  -   23,391   -   23,391   -   125   -   125 
                
Derivatives used for hedging (Note 14)  -   1,281,550   -   1,281,550   -   210,539   -   210,539 
                
Total liabilities  -   1,304,941   -   1,304,941   -   210,664   -   210,664 

Note i:          Available-for-sale financial assets were reclassified to financial assets designated at FVOCI (non-recycling) upon the adoption of IFRS 9 at 1 January 2018 (see Note 2(b)(i)).
F-34F-53

3Financial and capital risks management (Continued)

(b)Fair value estimation (Continued)

(i)Fair value measurements (Continued)

The fair value of financial instruments traded in active markets is based on quoted market prices at the end of reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Company and its subsidiaries is the current bid price. These instruments are included in level 1. As at 31 December 2016 and 2015, instrument2018, instruments included in level 1 are equity investmentsinstruments in Yangtze Power and Bank of Jiangsu Co., Ltd. (“Bank of Jiangsu”) classifiedlisted securities designated as available for sale.financial assets measured at fair value through other comprehensive income.

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

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

Specific valuation techniques used to value financial instruments include:

·The forward exchange contracts and fuel oil swaps are both valued using quoted market prices or dealer quotes for similar instruments.
The 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 value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.

The contingent consideration is valued using discounted cash flow. The valuation model considers the present value of the expected future receivables discounted using a risk-adjusted discounted rate. The expected future contingent considerations are determined by considering the expected performance of acquired entities through 31 December 2019, representing the measurement period for contingent consideration.

The material other equity instrument investments in unlisted securities are valued using discounted cash flow or market comparable companies. The inputs of the valuation model mainly consist of the expected performance, period of the expected performance, weighted average capital cost and discount for lack of marketability. Discount rate of 12.48% was used for the calculations of discounted cash flow model.

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

During the year ended 31 December 2016,2018, 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:
F-54


  As at 31 December 
  2018  2017 
Contingent consideration      
       
Beginning of the year  859,547   - 
         
Movement:        
Gains on fair value changes  746,850   859,547 
         
Profit compensation received from Huaneng Group  (615,014)  - 
         
End of the year  991,383   859,547 
         
Total gains for the year included in profit or loss for assets held at the end of the reporting period  746,850   859,547 
         
      As at 31 December 2018 
Other equity instrument investments        
         
Beginning of the year      - 
         
         
Adjustment on initial application of IFRS 9 (Note 2(b)(i))      2,072,365 
         
Adjusted balance at the beginning of the year      2,072,365 
         
Addition      450 
Fair value changes      2,046 
         
End of the year      2,074,861 
         
Changes in fair value recognised in other comprehensive income for the year      2,046 

From 1 January 2018, any gains or losses arising from the remeasurement of the Company and its subsidiaries’ other equity instrument investments held for strategic purposes are recognised in the fair value reserve (non-recycling) in other comprehensive income. Upon disposal of the other equity instrument investments, the amount accumulated in other comprehensive income is transferred directly to retained earnings. Prior to 1 January 2018, any gains arising from the disposal of the other equity instrument investments were presented in the “Other investment income” line item in the consolidated statement of comprehensive income.


(ii)Fair value disclosures

The carrying value less provision for doubtful accountsloss allowance of accounts receivable, other receivables and assets, accounts payable and other liabilities, short-term bonds and short-term loans approximated their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company and its subsidiaries for similar financial instruments.
F-35F-55

3Financial 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 RMB74.48RMB149.76 billion and RMB15.71RMB30.08 billion as at 31 December 2016 (2015: RMB78.312018 (2017: RMB125.00 billion and RMB23.15RMB19.81 billion), respectively. The aggregate book value of these liabilities was approximately RMB74.55RMB150.17 billion and RMB15.48RMB29.98 billion as at 31 December 2016 (2015: RMB78.382018 (2017: RMB125.13 billion and RMB22.74RMB19.99 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 2016,2018, the strategy of the Company and its subsidiaries remained unchanged from 2015.2017. The debt ratio of the Company and its subsidiaries as at 31 December 20162018 was 67.54% (2015: 67.08%72.35% (2017: 72.86%).

4Critical accounting estimates and judgments

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

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


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

The Company and its subsidiaries perform test annually whether goodwill and power generation license have suffered any impairment in accordance with the accounting policies stated in Note 2(i) and 2(g)2(l), respectively. The recoverable amounts of CGU or CGUs to which goodwill and the power generation license have been allocated are determined based on value-in-use calculations. These calculations require the use of estimates (Note 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.
F-36
4Critical accounting estimates and judgments (Continued)

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

For goodwill allocated to CGUs in the PRC, changes of assumptions in tariff and fuel price could have affected the results of goodwill impairment assessment. As at 31 December 2016,2018, 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 recognizefurther recognise impairment against goodwill by approximately RMB176RMB900 million and RMB1,043RMB3,915 million, respectively. If fuel price had increased by 1% or 5% from the management’s estimates with other variables constant with the expectations, the Company and its subsidiaries would have to recognizefurther recognise impairment against goodwill by RMB37approximately RMB421 million and RMB899RMB3,185 million, respectively.

For the sensitivity analysis of power generation license and goodwill of Tuas Power, please refer to Note 12 and 15.

F-56

(b)Useful life of power generation license

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


(c)Useful lives of property, plant and equipment

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


(d)Estimated impairment of other non-current assets

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)2(l), an impairment loss is recognizedrecognised for the amount by which the carrying amount of the asset exceeds its recoverable amount. It is reasonably possible, based on existing knowledge, that outcomes within the next financial period that are different from assumptions could require a material adjustment to the carrying amount of property, plant and equipment, land use rights and mining rights.
F-37

4Critical accounting estimates and judgments (Continued)

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

Changes of assumptions in tariff and fuel price will affect the result of property, plant and equipment, land use rights and mining rights impairment assessment. For power plants assets that are subject to impairment testing, as at 31 December 2016,2018, 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 recognizerecognise impairment against property, plant and equipment, and land use rights and mining rights by approximately RMB92RMB460 million and RMB779RMB5,599 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 decreaseincrease totaling by approximately RMB8RMB46 million and RMB38RMB1,598 million, respectively.


(e)Approval of construction of new power plants

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

F-57


(f)Deferred tax assets

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


(g)Business combination

For the business combinations undertaken by the Company and its subsidiaries, the Company recognises assets acquired and the liabilities assumed based on their estimated fair value on the date of acquisition. Any excess of purchase consideration over the estimated fair values of acquired identifiable net assets is recorded goodwill (Note 2(k)). The contingent consideration of the Company in the business combination is recognised as a financial asset at fair value through profit or loss (included in other non-current assets and other receivables and assets).

The Company makes judgements and estimates in relation to the fair value allocation of the purchase price and the contingent consideration from business combination. The fair value of acquired assets and assumed liabilities and the contingent consideration are determined using valuation techniques. Estimating the fair value assigned to each class of acquired assets and assumed liabilities and the contingent consideration are based on expectations and assumptions, in particular in relation to the future sales volumes and the related revenue growth rate, future on-grid tariffs, future capital expenditure, future fuel prices, future other operating costs and the discount rates applied.

A change in the amount allocated to identifiable net assets would have an offsetting effect on the amount of goodwill recognised from the acquisition and would change the amount of depreciation and amortisation expense recognised related to those identifiable net assets. And outcomes within the next financial period that are different from assumptions could require a material adjustment to the carrying amounts of contingent consideration.
F-38F-58

5Revenue and segment information

Revenues recognized

(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 with the Company and its subsidiaries’ reportable segments (Note 5(b)).

For the year ended 31 December 2018 PRC power segment  Overseas segment  All other segments  Inter-segment revenue  Total 
     Note ii          
-Sales of power and heat  154,816,070   11,490,601   -   -   166,306,671 
-Sales of coal and raw material  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
(Note i)
 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 material  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 customers within the scope of IFRS15                  152,363,979
 
-From other sources                  95,465 

For the year ended 31 December 2016
(Note i)
 PRC power segment  Overseas segment  All other segments  Inter-segment revenue  Total 
                
-Sales of power and heat  104,131,730   8,662,806   -   -   112,794,536 
-Sales of coal and raw material  2,909   -   -   -   2,909 
-Port service  -   -   410,088   (172,741)  237,347 
-Transportation service  -   -   188,645   (83,140)  105,505 
-Others  612,051   96,016   36,232   (70,360)  673,939 
                     
Total  104,746,690
   8,758,822   634,965   (326,241)  113,814,236 
                     
Revenue:                    
-From contracts with customers within the scope of IFRS15                  113,770,006
 
-From other sources                  44,230 

F-59

Note i: The Company and its subsidiaries have initially applied IFRS 15 using the cumulative effect method. Under this method, the comparative information is not restated and was prepared in accordance with IAS 18 and IAS 11.

Note ii: Overseas segment mainly consists of the operations in Singapore and the operation in Pakistan (consolidated since December 2018, see note 41(b)).

The revenue from sales of power and heat and sales of coal and raw materials are recognised at a point in time upon the transfer of products, whereas the revenue from port service, transportation service and maintenance service are recognised over time during the yearprovision of service. The upfront fees of heating pipeline are recognised as follows:revenue over the period of heat supply.

  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 

(b)Segment information

Directors and certain senior management of the Company perform the function as the chief operating decision maker (collectively referred to as the “senior management”). The senior management reviews the internal reporting of the Company and its subsidiaries in order to assess performance and allocate resources. The Company has determined the operating segments based on these reports. The reportable segments of the Company are the PRC power segment, 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,other equity instrument investment, gains on disposal of available-for-sale financial assetother equity instrument investment and operating results of the centrally managed and resource allocation functions of headquarters (“Segment results”). Other information provided, except as noted below, to the senior management of the Company is measured under PRC GAAP.

Segment assets exclude prepaid income tax, deferred income tax assets, available-for-sale financial assetsother equity instrument investments 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 liabilities of consolidated statement of financial position.
F-39
5Revenue 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)
F-40F-60
5Revenue and segment information (Continued)

        (Under PRC GAAP) 
  PRC power segment  Singapore segment  All other segments  Total 
             
31 December 2016            
Segment assets  262,832,643   28,141,718   11,611,683   302,586,044 
Including:                
Additions to non-current assets (excluding financial assets and deferred income tax assets)  19,962,461   230,974   854,484   21,047,919 
Investments in associates  13,254,236   -   2,868,139   16,122,375 
Investments in joint ventures  1,197,665   -   785,610   1,983,275 
Segment liabilities  (186,489,967)  (14,027,606)  (5,620,515)  (206,138,088)
                 
31 December 2015                
Segment assets  253,376,399   27,487,701   10,703,373   291,567,473 
Including:                
Additions to non-current assets (excluding financial assets and deferred income tax assets)  22,421,000   160,282   642,949   23,224,231 
Investments in associates  13,026,027   -   2,806,231   15,832,258 
Investments in joint ventures  1,569,614   -   785,004   2,354,618 
Segment liabilities  (176,406,566)  (14,876,229)  (5,097,402)  (196,380,197)

        (Under PRC GAAP) 
             
  PRC power segment  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)
                 
                 
  PRC power segment  Overseas segment  All other segments  Total 
                 
For the year ended 31 December 2017 (Restated*) 
                 
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)

F-61


        (Under PRC GAAP) 
             
  PRC power segment  Overseas segment  All other segments  Total 
           
For the year ended 31 December 2016 (Restated*)          
Total revenue  129,821,191   8,758,822   634,965   139,214,978 
Inter-segment revenue  -   -   (344,866)  (344,866)
                 
External revenue  129,821,191   8,758,822   290,099   138,870,112 
                 
Segment results  17,702,235   (282,703)  (38,433)  17,381,099 
                 
Interest income  103,817   69,672   623   174,112 
Interest expense  (8,036,243)  (481,263)  (137,825)  (8,655,331)
Impairment (loss)/reversal  (1,427,452)  899   (8,475)  (1,435,028)
Depreciation and amortization  (17,542,985)  (778,426)  (203,493)  (18,524,904)
Net loss on disposal of non-current assets  (693,097)  (172)  (14,303)  (707,572)
Share of profits less losses of associates and joint ventures  973,982   -   73,415   1,047,397 
Income tax expense  (4,645,990)  44,135   57,489   (4,544,366)

  PRC power segment  Overseas segment  All other segments  Total 
             
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)
                 
31 December 2017(Restated*)                
Segment assets  337,297,224   28,526,428   9,978,885   375,802,537 
Including:                
Additions to non-current assets (excluding financial assets and deferred income tax assets)  25,930,607   260,240   328,061   26,518,908 
Investments in associates  12,577,836   -   2,919,860   15,497,696 
Investments in joint ventures  748,499   708,748   1,025,534   2,482,781 
Segment liabilities  (266,816,265)  (14,000,442)  (3,026,229)  (283,842,936)

A reconciliation of revenue from external customersrevenue 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 
  2018  2017 (Restated*)  2016 (Restated*) 
External revenue (PRC GAAP)  169,861,165   152,970,195   138,870,112 
Reconciling item:            
Impact of restatement under PRC GAAP in relation to business combination under common control*(Note 41)  (310,541)  (510,751)  (25,055,876)
Operating revenue per IFRS consolidated statement of comprehensive income  169,550,624   152,459,444   113,814,236 

F-62

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 
F-41
5Revenue and segment information (Continued)
  For the year ended 31 December 
  2018  2017 (Restated*)  2016 (Restated*) 
          
Segment results (PRC GAAP)  3,622,485   1,996,124   17,381,099 
Reconciling items:            
Loss related to the headquarter  (354,162)  (170,210)  (699,054)
Investment income from China
Huaneng Finance Co., Ltd.
(“Huaneng Finance”)
  166,864   143,794   132,018 
Dividend income of available-for-sale financial assets  —   124,918   105,337 
Dividend income of other equity instruments investments  1,168   —   — 
Gains on disposal of available-for-sale financial asset  —   1,479,732   932,738 
Impact of restatement under PRC GAAP in relation to business combination under common control*(Note 41)  7,121   145,682   (3,485,801)
Impact of other IFRS adjustments**  (1,470,329)  (918,307)  (553,199)
             
Profit before income tax expense per IFRS consolidated statement of comprehensive income  1,973,147   2,801,733   13,813,138 

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

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 (Restated*) 
            
Total segment assets (PRC GAAP)  302,586,044   291,567,473   396,350,552   375,802,537 
Reconciling items:                
Investment in Huaneng Finance  1,314,603   1,329,753   1,391,431   1,336,777 
Deferred income tax assets  1,558,670   1,305,548   3,143,465   3,010,787 
Prepaid income tax  141,423   2,393   134,477   150,838 
Available-for-sale financial assets  3,456,032   5,127,863   —   1,654,993 
Other equity instruments investments  2,083,419   — 
Corporate assets  360,854   396,693   338,113   395,148 
Impact of restatement under PRC GAAP in relation to business combination under common control * (Note 41)  -   (3,657,352)
Impact of other IFRS adjustments**  5,422,113   9,136,631   16,461,854   17,895,783 
        
Total assets per IFRS consolidated statement of financial position  314,839,739   308,866,354   419,903,311   396,589,511 

F-63

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

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 (Restated*) 
            
Total segment liabilities (PRC GAAP)  (206,138,088)  (196,380,197)  (297,508,896)  (283,842,936)
Reconciling items:                
Current income tax liabilities  (440,791)  (1,054,246)  (231,299)  (441,225)
Deferred income tax liabilities  (1,355,099)  (1,417,972)  (1,050,326)  (1,288,167)
Corporate liabilities  (4,717,617)  (4,937,450)  (2,864,737)  (3,632,847)
Impact of restatement under PRC GAAP in relation to business combination under common control * (Note 41)  -   2,715,117 
Impact of other IFRS adjustments**  (1,407)  (3,382,800)  (2,126,383)  (2,484,849)
        
Total liabilities per IFRS consolidated statement of financial position  (212,653,002)  (207,172,665)  (303,781,641)  (288,974,907)

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  Investment income from Huaneng Finance  
Impact of restatement under PRC GAAP in relation to business combination under common control* (Note 41)
  Impact of other IFRS adjustments**  Total 
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 amortization  (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 2016                  
For the year ended 31 December 2017 (Restated*)                        
Total revenue  152,970,195   -   -   (510,751)  -   152,459,444 
Interest expense  (9,724,661)  (126,900)  -   102,557   -   (9,749,004)
Depreciation and amortization  (19,408,337)  (38,819)  -   280,295   (1,468,972)  (20,635,833)
Impairment loss  (1,222,800)  -   -   34,313   1,275   (1,187,212)
Share of profits less losses of associates and joint ventures  300,605   -   143,794   -   (19,184)  425,215 
Net (loss)/gain on disposal of non-current assets  (581,323)  3,174   -   (20)  (38,287)  (616,456)
Income tax expense  (1,581,319)  -   -   7,851   355,942   (1,217,526)
                        
For the year ended 31 December 2016 (Restated*)                        
Total revenue  138,870,112   -   -   (25,055,876)  -   113,814,236 
Interest expense  (6,686,282)  (131,244)  -   -   -   (6,817,526)  (8,655,331)  (131,244)  -   1,969,049   -   (6,817,526)
Depreciation and amortization  (14,768,852)  (48,934)  -   -   (344,929)  (15,162,715)  (18,524,904)  (48,934)  -   3,756,052
  (344,929)  (15,162,715
)
Impairment loss  (1,204,958)  -   -   -   -   (1,204,958)  (1,435,028)  -   -   230,070   -
  (1,204,958
)
Share of profits less losses of associates and joint ventures  1,181,091   -   132,018   -   (14,220)  1,298,889   1,047,397   -   132,018   133,694   (14,220)  1,298,889 
Net loss on disposal of non-current assets  (591,797)  (14)  -   -   1,762   (590,049)  (707,572)  (14)  -   115,775   1,762   (590,049)
Income tax expense  (3,580,113)  -   -   -   114,962   (3,465,151)  (4,544,366)  -   -   964,253   114,962   (3,465,151)
                        
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)

F-42F-64

5Revenue 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 CompanyHuaneng Shandong Power Generation Co., Ltd. (“Shandong Power”) completed the acquisition of equity interests of tencertain companies from Huaneng Group and HIPDC,Taishan Power Limited Company (“Taishan Power”), see Note 3941 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.

**Other GAAP adjustments above primarily represented the classification adjustments and other adjustments.adjustments of the prior year transactions. Other than the classification adjustments, the differences will be gradually eliminated following subsequent depreciation and amortization of related assets or the extinguishment of liabilities.

Geographical information (Under IFRS):

(i)(i)          External revenue generated from the following countries:

 For the year ended 31 December  For the year ended 31 December 
 2016  2015  2014  2018  2017  2016 
                  
PRC  105,055,414   118,761,080   111,036,449   157,547,764   142,381,413   105,055,414 
Singapore  8,758,822   10,143,793   14,370,406 
Overseas  12,002,860   10,078,031   8,758,822 
            
Total  113,814,236   128,904,873   125,406,855   169,550,624   152,459,444   113,814,236 

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 
       
PRC  249,155,921   245,620,977 
Singapore  23,369,766   22,874,396 
Total  272,525,687   268,495,373 

F-43
5Revenue and segment information (Continued)
  As at 31 December 
  2018  2017 
       
PRC  317,850,476   319,534,533 
Overseas  23,302,942   23,035,758 
         
Total  341,153,418   342,570,291 

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

In 2018, the revenue from grid companies under common control of State Grid Corporation of China in total accounted for 76% of external revenue (2017: 76%, 2016: 74%). The sales from a subsidiary of State Grid Corporation of China at amount more than 10% of external revenue is as follows:
  For the year ended 31 December 
  2016  2015  2014 
  Amount  Proportion  Amount  Proportion  Amount  Proportion 
                   
State Grid Jiangsu Electric Power Company  13,495,734   12%  14,835,745   12%  15,573,769   12%
State Grid Shandong Electric Power Company  12,649,224   11%  14,855,655   12%  16,621,611   13%

  For the year ended 31 December 
  2018  2017  2016 
  Amount  Proportion  Amount  Proportion  Amount  Proportion 
                   
State Grid Shandong Electric Power Company  31,156,948   18%  28,659,891   19%  12,649,224   11%

F-65


(c)Contract balances

The contract assets primarily relate to the Company and its subsidiaries’ rights to consideration for service completed but not billed at the reporting date. There was no impact on contract assets as a result of the acquisition of the subsidiaries (see Note 41). The contract assets are transferred to receivables when the rights become unconditional according to the contract.

The contract liabilities primarily relate to the advance consideration received from customers for heat sales and heating pipeline upfront fees. As at 31 December 2018, the carrying amount of contract liabilities is RMB4,225 million. The contract liabilities of RMB1,375 million at the beginning of the year has been recognised as revenue of heat in 2018 and RMB187 million heat pipeline upfront fees recognised as revenue in year 2018.

No information is provided about remaining performance obligations at 31 December 2018 that have an original expected duration of one year or less, as allowed by IFRS 15.

6Profit before income tax expense

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

 For the year ended 31 December  For the year ended 31 December 
 2016  2015  2014  2018  2017  2016 
                  
Total interest expense on borrowing  7,267,490   8,716,074   8,371,506   10,982,230   10,225,069   7,267,490 
            
Less: amounts capitalized in property, plant and equipment  449,964   770,340   557,392   495,818   476,065   449,964 
            
            
Interest expenses charged in consolidated statement of comprehensive income  6,817,526   7,945,734   7,814,114   10,486,412   9,749,004   6,817,526 
Auditors’ remuneration  43,610   41,640   33,840 
            
Auditors’ remuneration-audit services  68,750   64,160   43,610 
Operating leases charge  331,496   313,723   283,661   377,162   364,756   331,496 
Fuel  56,617,542   59,242,367   64,762,908   105,736,173   92,737,304   56,617,542 
Depreciation of property, plant and equipment  14,815,620   14,411,632   11,646,683   20,466,423   20,180,830   14,815,620 
Amortization of land use rights  225,707   213,206   139,088   344,068   341,125   225,707 
Amortization of other non-current assets  121,388   92,775   99,528   105,623   113,878   121,388 
            
Impairment loss of property, plant and equipment (Note 7)  1,063,735   1,047,641   1,358,522   989,778   1,046,195   1,063,735 
Impairment loss of land use rights (Note 11)  51,981   -   -   -   108,590   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 
Impairment loss of mining rights (Note 13)  135,085   -   - 
Impairment loss of goodwill (Note 15)  409,371   -   - 
Impairment loss of other non-current assets  8,432   5,008   - 
Recognition of loss allowance for receivables
  40,967   27,682   89,498 
Recognition/(reversal) of provision for inventory obsolescence (Note 17)  253,816   (263)  (256)
            
Net (gain)/ loss on disposals of non-current assets  (42,506)  616,456   590,049 
Government grants  (396,467)  (696,735)  (787,988)  (521,380)  (421,912)  (396,467)
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)
Gain on a bargain purchase  -   -   (129,921)
            


F-44F-66


6Profit before income tax expense (Continued)
  For the year ended 31 December 
  2018  2017  2016 
          
Included in other investment income         
-Gains on disposal of available-for-sale financial assets  
–
   (1,479,732)  (932,738)
             
-Dividends on available-for-sale financial assets  –   (124,918)  (103,037)
-Dividends on other equity instrument investments  (1,168)  –   – 
-Gains on disposal of subsidiaries  -   (52,330)  - 
-Loss on disposal of a joint venture (Note 41(b))  270,741   -   - 
             
             
Included in (gain)/loss on fair value changes of financial assets/liabilities            
-Contingent consideration of the business combination  (746,850)  (859,547)  - 
-Loss on fair value changes of trading derivatives  20,007   2,761   12,986 

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

7Property, plant and equipment

 Dam  Port facilities  Buildings  Electric utility plant in service  Transport-ation facilities  Others  CIP  Total  Dam  Port facilities  Buildings  Electic utility plant in service  Transportation facilities  Others  CIP  Total 
Year ended 31 December 2017                        
Beginning 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 
Reclassification  49,386   (404)  52,047   (157,759)  (4,357)  61,087   -   - 
Business combination (Note 41)  279,169   -   1,944,531   58,379,270   17,243   443,052   2,717,544   63,780,809 
Additions  -   -   184   840,991   -   88,160   21,225,980   22,155,315 
Transfer from CIP  15,355   114,688   342,285   20,283,508   288,554   145,705   (21,190,095)  - 
Disposals/write-off  -   (14,731)  (30,837)  (1,252,829)  (3,907)  (28,562)  -   (1,330,866)
Disposal of subsidiaries  -   (632,709)  (101,169)  (114,542)  -   (153,096)  (1,242,210)  (2,243,726)
Depreciation charge  (40,200)  (111,529)  (339,630)  (19,155,852)  (59,022)  (494,932)  -   (20,201,165)
Impairment charge  (45,619)  -   (1,651)  (754,753)  -   (2,503)  (241,669)  (1,046,195)
Currency translation differences  -   -   -   151,249   -   263   600   152,112 
                                                        
As at 1 January 2015                        
End of the year  1,637,689   2,915,552   8,102,084   239,920,160   793,170   2,416,183   28,543,255   284,328,093 
                                
As at 31 December 2017                                
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)  (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 (Note 41)  -   -   38,845   3,128,388   1,683   294,628   5,120   3,468,664 
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)
Depreciation charge  (24,498)  (111,245)  (234,073)  (13,618,136)  (50,380)  (403,120)  -   (14,441,452)
Impairment charge  (152,714)  -   (302)  (526,191)  -   (557)  (367,877)  (1,047,641)
Currency translation differences  -   -   -   (133,733)  -   22,847   (2,880)  (113,766)
End of the year  1,433,838   3,423,794   5,728,768   183,006,185   609,064   2,361,234   23,110,187   219,673,070 
As at 31 December 2015                                
Cost  1,856,144   3,860,009   8,306,471   327,827,738   980,290   5,809,400   23,851,697   372,491,749 
Accumulated depreciation  (153,325)  (436,215)  (2,508,772)  (138,852,591)  (371,226)  (3,366,838)  -   (145,688,967)
Accumulated impairment loss�� (268,981)  -   (68,931)  (5,968,962)  -   (81,328)  (741,510)  (7,129,712)
Net book value  1,433,838   3,423,794   5,728,768   183,006,185   609,064   2,361,234   23,110,187   219,673,070 
Year ended 31 December 2016                                
Beginning of the year  1,433,838   3,423,794   5,728,768   183,006,185   609,064   2,361,234   23,110,187   219,673,070 
Reclassification  -   1,771   (492,558)  495,841   759   (5,813)  -   - 
Business combination (Note 39)  -   -   8,098   303,854   -   2,977   4,576   319,505 
Additions  -   1,770   127   418,812   -   122,519   18,839,102   19,382,330 
Transfer from CIP  20,170   246,712   1,319,019   12,576,736   20,033   296,648   (14,479,318)  - 

                                
Reclassification to assets held for sale (Note 20)
  -   -   -   (547,720)  -   (3,668)  (2,645)  (554,033)
Disposals/write-off  -   -   (68,945)  (495,251)  (26,477)  (27,055)  (193,357)  (811,085)  -   -   (41,618)  (449,894)  -   (16,568)  -   (508,080)
Depreciation charge  (32,987)  (113,810)  (255,882)  (14,004,881)  (48,720)  (387,884)  -   (14,844,164)  (38,832)  (117,025)  (405,045)  (19,446,539)  (62,771)  (423,050)  -   (20,493,262)
Impairment charge  (41,423)  -   (2,303)  (1,005,367)  -   (6,399)  (8,243)  (1,063,735)  -   -   (20,002)  (947,520)  -   (112)  (22,144)  (989,778)
Currency translation differences  -   -   -   404,948   -   782   158   405,888   -   -   -   193,872   -   191   66   194,129 
                                
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   1,604,724   2,849,546   8,298,218   240,011,689   732,542   2,465,578   26,098,975   282,061,272 
As at 31 December 2016                                
                                
As at 31 December 2018                                
Cost  1,876,314   4,116,914   9,056,858   341,195,395   875,630   6,041,783   28,022,858   391,185,752   2,308,072   3,409,830   12,566,461   472,814,967   1,219,218   7,226,391   27,112,542   526,657,481 
Accumulated depreciation  (186,312)  (556,677)  (2,749,300)  (152,408,524)  (320,971)  (3,596,546)  -   (159,818,330)  (301,125)  (560,284)  (4,147,947)  (221,703,642)  (486,676)  (4,722,608)  -   (231,922,282)
Accumulated impairment loss  (310,404)  -   (71,234)  (7,085,994)  -   (88,228)  (749,753)  (8,305,613)  (402,223)  -   (120,296)  (11,099,636)  -   (38,205)  (1,013,567)  (12,673,927)
                                
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   1,604,724   2,849,546   8,298,218   240,011,689   732,542   2,465,578   26,098,975   282,061,272 

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

For the purpose of better utilization of the expertise of both shareholders in terms of port operation and management, the Company and the other shareholder agreed to optimize the business model of Yingkou Port and amended the articles of association and shareholder agreement of Yingkou Port on 1 January 2015. In accordance with the amended articles of association and shareholder agreement, the Company’s  rights and ability to solely direct significant financial and operating decisions have been removed, and therefore, Yingkou Port became a joint venture and is jointly controlled by the Company and the other shareholder.
F-45F-67
7Property, plant and equipment (Continued)


Interest capitalization

Interest expense of approximately RMB450RMB496 million (2015 and 2014: RMB770 million and RMB557(2017: RMB476 million) arising on borrowings for the construction of property, plant and equipment was capitalized during the year and was included in ‘Additions’ in property, plant and equipment. The weighted average capitalization rate was approximately 4.52% (2015 and 2014: 5.31% and 5.98%4.57% (2017: 4.54%) per annum.

Impairment

In 2016,2018, impairment losses for certain property, plant and equipment and land use rights of certain power projects amounting to approximately RMB1,064 million and RMB52RMB990 million have been recognized, respectively.recognised. Factors leading to the impairment include lower than expected operating results of operating projects primarily included lower utilization hourssubsidiaries 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.market. Discount rates of 8.06%7.74%, 8.97%7.80%, 8.26%, 8.63%, 9.25%, 9.79%, and 8.12%12.84% were adopted in the value in use model in the determination of the recoverable amounts for the twopower plants respectively. In addition, as a result of the low demand of coal-fired power plantsin local market and site selection issues, management estimated the hydropower plant respectively.possibility of further development of a coal-fired power project and a wind power project was remote; Therefore the projects under construction with a carrying value of RMB 14 million and 8 million were fully impaired in 2018.

In 2015,2017, impairment losses for certain property, plant and equipment and land use rights of approximately RMB1,048RMB1,046 million and RMB109 million have been recognized.recognised, respectively. Factors leading to the impairment of operating projects primarily includedinclude lower than expected utilization hours of a subsidiary due to long idle hours of its power generating units and tariffthe coal-fire projects in progress was aborted; lower than expected operating results of two coal-fired power plants as a result of over supply ofthree subsidiaries in 2017 due to oversupply and fierce competition within the electricity market in twothe provinces, as well as low utilization hoursprofitability of a hydropower plant, a coal-fire project in progress of a subsidiary was aborted as a result of low level of water inflow to the main dam .relevant regulation. Discount rates of 7.86%9.50%, 8.81%9.98%, 9.89%, 14.74% and 7.60%9.14% were adopted in the value in use model in the determination of the recoverable amounts for the twofour coal-fired power plants and the hydropower plant respectively. Besides,In addition, as a result of the low demand of coal-fired power in local market, management estimated the possibility of further development of a coal-fired power project was remote, therefore the project under construction with a carrying value of RMB368RMB242 million was fully impaired in 2015.

In 2014, impairment losses for certain property, plant and equipment of approximately RMB1,359 million have been recognized. Factors leading to the impairment primarily included continuous losses and external environment deterioration in respect of port industry, continuous low level of water inflow to the main dam of a hydropower plant and shut-down of a coal-fired power plant. Discount rates of 9.54%, 7.24% and 8.68% were adopted in the value in use model in the determination of the recoverable amounts for the port plant, hydropower plant and coal-fired power plant respectively.2017.

Property, plant and equipment held under finance leases

As at 31 December 2016,2018, certain property, plant and equipment with original cost of RMB2,075RMB2,376 million (2015: RMB1,912(2017: RMB3,312 million) were held under finance leases, which mainly included power generation assets, ships and pipeline assets.

Security

As at 31 December 2016,2018, certain property, plant and equipment were secured to a bank as collateral against a long-term loan (Note 23)25).

Buildings without ownership certificate

At 31 December 2016,2018, the Company and its subsidiaries were in the process of applying for the ownership certificate for certain buildings (buildings for power generation process were included in electric utility plant in service) with an aggregate net book value of RMB7,871RMB8,386 million (2015: RMB8,314(2017: RMB10,800 million). The management are of the opinion that the Company and its subsidiaries are entitled to lawfully and validly occupy and use of the above mentioned buildings.
F-46F-68

8Investments in associates and joint ventures

 2016  2015  2018  2017 
            
Beginning of the year  19,745,192   17,626,910   19,517,623   19,632,113 
Capital injections in associates and joint ventures  276,118   889,780   463,258   301,916 
Business combination  -   136,244   -   1,021,566 
Transfer from available-for-sale  —   91,800 
Transfer to subsidiaries(Note 41(b))  (1,314,040)  (736,725)
Share of net profit less loss  1,298,889   1,525,975   1,823,415   425,215 
Share of other comprehensive (loss)/income  (180,572)  678,793   (531,186)  121,208 
Currency translation differences  45,762   (142,226)
Share of other capital reserve of equity-method investees  (80,543)  - 
Dividends  (1,507,514)  (934,379)  (370,325)  (835,279)
Impairment charge  -   (178,131)
Elimination of unrealised profits on transactions with equity-method investees  -   (361,965)
        
End of the year  19,632,113   19,745,192   19,553,964   19,517,623 

As at 31 December 2016,2018, investments in associates and joint ventures of the Company and its subsidiaries are unlisted except for Shenzhen Energy Corporation Limited (“SECL”) which is listed on the Shenzhen Stock Exchange. The following list contains only the particulars of material associates and joint ventures:

Country of RegisteredBusiness nature and
 Percentage of equity interest held 
NameCountry of incorporationRegistered capitalBusiness nature and scope of operation Direct  
Indirect1
 
          
Associates:         
SECL*PRCRMB2,642,994,398RMB3,964,491,597Energy and investment in related industries  25.02%  - 
Hebei Hanfeng Power Generation Limited Liability Company (“Hanfeng Power”)PRCRMB1,975,000,000Power generation  40%  - 
Huaneng FinancePRCRMB5,000,000,000Provision for financial service including fund deposit services, lending, finance lease arrangements, notes discounting and entrusted loans and investment arrangement within Huaneng Group  20%  - 
Huaneng Sichuan Hydropower Co., Ltd. (“Sichuan Hydropower”)PRCRMB1,469,800,000Development, investment, construction, operation and management of hydropower  49%  - 
China Huaneng Group Fuel Co., Ltd.(“ (“Huaneng Group Fuel Company”) **PRCRMB3,000,000,000Wholesale of coal, import and export of coal  50%  - 
Hainan Nuclear Power Limited Liability Company (“Hainan Nuclear”)PRCRMB2,059,334,000RMB4,831,460,000Construction and operation of nuclear power plants; production and sales of electricity and related products  30%  - 
            
Joint ventures:           
Shanghai Time Shipping Co., Ltd. (“Shanghai Time Shipping”)PRC
RMB1,200,000,000International and domestic sea transportation
  50%  - 
Jiangsu Nantong Power Generation Co., Ltd. (“Jiangsu Nantong Power”)PRCRMB1,596,000,000Operation and Management of power generation plants and transportation related projects  -   35%

F-69

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

*As at 31 December 2016,2018, the fair value of the Company’s shares in SECL was RMB6,813RMB5,207 million (2015: RMB9,729(2017: RMB6,010 million).

F-47
8Investments 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.

F-48F-70
8Investments 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  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  2018  2017  2018  2017  2018  2017  2018  2017  2018  2017  2018  2017 
                                                                        
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   1,064,837   1,113,579   24,066,320   16,444,934   31,484,547   25,535,504   934,257   650,055   5,157,038   4,327,146   2,520,515   2,497,765 
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   14,472,981   14,590,921   62,798,620   56,079,321   20,106,246   20,786,497   1,810,145   2,246,412   3,928,269   4,102,426   22,091,197   22,490,989 
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)  (3,903,679)  (2,477,362)  (24,141,930)  (20,447,190)  (44,560,156)  (39,588,213)  (642,355)  (795,815)  (2,900,223)  (1,778,075)  (2,490,271)  (3,409,360)
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)  (7,060,740)  (8,661,852)  (35,193,400)  (28,491,540)  (73,483)  (49,904)  (35,503)  (27,443)  (2,464,580)  (3,119,462)  (17,908,511)  (17,252,794)
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   4,573,399   4,565,286   27,529,610   23,585,525   6,957,154   6,683,884   2,066,544   2,073,209   3,720,504   3,532,035   4,212,930   4,326,600 
-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   3,409,111   3,400,953   21,118,225   22,285,077   6,957,154   6,683,884   2,066,544   2,073,209   3,477,211   3,400,344   4,212,930   4,326,600 
-Non-controlling interests  1,159,293   1,124,389   3,035,990   2,812,210   -   -   -   -   161,829   144,155   -   -   1,164,288   1,164,333   6,411,385   1,300,448   -   -   -   -   243,293   131,691   -   - 
                                                                                                
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   2,242,269   2,247,781   18,518,430   13,908,949   1,610,768   1,393,211   2,232,700   2,073,209   20,568,107   17,166,036   2,626,882   2,504,379 
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 
Profit/(loss) from continuing operations attributable to shareholders  225,705   222,403   589,821   747,657   834,318   718,970   (6,665)  52,361   70,766   48,876   (392,000)  (535,361)
Other comprehensive (loss)/income attributable to shareholders  -   -   (638,680)  2,765,600   (125,840)  (80,871)  -   -   8,723   6,306   -   -   -   -   (1,117,524)  521,965   78,951   (28,099)  -   -   6,101   (6,654)  -   - 
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 
Total comprehensive income/(loss) attributable to shareholders  225,705   222,403   (527,703)  1,269,622   913,269   690,871   (6,665)  52,361   76,867   42,222   (392,000)  (535,361)
Dividend received from the associates  145,392   189,499   198,348   132,232   122,000   138,000   174,366   115,954   10,000   -   -   -   106,598   132,923   79,339   148,761   128,000   116,000   -   127,698   -   10,000   -   - 
                                                                                                
Reconciled to the interests in the associates                                                                                                
Gross amounts of net assets attributable to shareholders of the associate  3,449,824   3,573,323   21,610,140   21,679,710   6,573,014   6,648,764   2,340,092   2,485,536   3,378,952   3,287,867   4,861,961   4,508,616   3,409,111   3,400,953   21,118,225   22,285,077   6,957,154   6,683,884   2,066,544   2,073,209   3,477,211   3,400,344   4,212,930   4,326,600 
The Company’s effective interest  49%  49%  25.02%  25.02%  20%  20%  40%  40%  50%  50%  30%  30%  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   1,670,464   1,666,467   5,282,723   5,574,612   1,391,431   1,336,777   826,618   829,284   1,738,606   1,700,172   1,263,879   1,297,980 
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   1,878,050   1,874,053   6,444,533   6,736,422   1,391,431   1,336,777   1,119,700   1,122,366   1,755,127   1,716,693   1,277,955   1,312,056 


F-49F-71
8Investments 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  Shanghai Time Shipping  Jiangsu Nantong Power 
 2016  2015  2016  2015  2018  2017  2018  2017 
                        
Gross amounts of joint ventures’                        
            
Current assets  883,120   889,689   815,359   629,933   345,658   665,410   763,572   656,720 
Non-current assets  5,335,409   5,675,480   6,075,100   6,587,197   4,335,923   4,663,530   5,399,783   5,739,860 
Current liabilities  (3,177,881)  (3,506,971)  (2,600,258)  (1,583,902)  (2,151,722)  (3,316,709)  (2,826,652)  (2,939,371)
Non-current liabilities  (1,506,076)  (1,524,838)  (1,931,219)  (2,494,000)  (709,165)  (617,437)  (1,128,274)  (1,374,656)
Equity  1,534,572   1,533,360   2,358,982   3,139,228   1,820,694   1,394,794   2,208,429   2,082,553 
                                
Included in the above assets and liabilities:                                
Cash and cash equivalents  203,018   197,894   96,501   144,001   137,444   96,528   312,783   362,214 
Current financial liabilities (excluding trade and other payables and provisions)  (2,681,857)  (3,027,511)  (2,270,601)  (954,448)  (1,953,156)  (2,987,937)  (2,158,919)  (2,404,331)
Non-current financial liabilities (excluding trade and other payables and provisions)  (1,506,075)  (1,524,837)  (1,931,219)  (2,494,000)  (709,164)  (617,437)  (1,128,274)  (1,352,000)
                                
Revenue  3,561,091   3,071,262   3,354,545   3,583,167   2,423,130   3,532,065   3,287,872   3,451,983 
Profit from continuing operations  1,212   1,646   608,660   897,066 
Total comprehensive income  1,212   1,646   608,660   897,066 
Profit /(loss) from continuing operations  425,900   (139,780)  174,652   271,364 
Other comprehensive income  -   -   -   - 
Total comprehensive income/(loss)  425,900   (139,780)  174,652   271,364 
                                
Dividend declared by the joint ventures  -   225,000   694,453   - 
Dividend received in cash from the joint ventures  275,000   -   -   -   -   -   24,387   724,453 
Included in the above profit:                
Included in the above profit/(loss):                
Depreciation and amortization  340,826   339,204   393,221   390,262   269,438   317,133   374,683   396,500 
Interest income  985   812   2,313   3,436   1,456   1,406   1,485   1,810 
Interest expense  149,748   172,382   128,224   199,769   139,180   157,851   163,914   130,028 
Income tax expense  500   561   194,915   261,023   141,667   (45,741)  60,379   92,294 
                                
Reconciled to the interest in the joint venture:                
Reconciled to the interest in the joint ventures:
                
Gross amounts of net assets  1,534,572   1,533,360   2,358,982   3,139,228   1,820,694   1,394,794   2,208,429   2,082,553 
The Company and its subsidiaries’ effective interest  50%  50%  50%  50%  50%  50%  50%  50%
The Company and its subsidiaries’ share of net assets  767,286   766,680   1,179,491   1,569,614   910,347   697,397   1,104,215   1,041,277 
Impact of adjustments  18,324   18,324   -   -   18,324   18,324   -   - 
Carrying amount in the consolidated financial statements  785,610   785,004   1,179,491   1,569,614   928,671   715,721   1,104,215   1,041,277 

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

 2016  2015  2018  2017 
            
Aggregate carrying amount of individually immaterial associates and joint ventures in the consolidated financial statements  3,479,043   3,202,906   3,654,282   2,948,510 
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 Company and its subsidiaries’ share of those associates and joint ventures        
Profit from continuing operations  52,935   70,965 
Total comprehensive income  263,392   113,891   53,197   70,965 

As at 31 December 2016,2018, the Company’s share of losses of an associateassociates and a joint venture exceeded its interest in the associate and the joint venture and the unrecognizedunrecognised further losses amounted to RMB163RMB505 million (2015: RMB76(2017: RMB185 million).
F-50F-72

9Investments in subsidiaries

As at 31 December 2016,2018, the investments in subsidiaries of the Company and its subsidiaries, all of which are unlisted, are as follows:


(i)Subsidiaries acquired through establishment or investment

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

F-51F-73
9Investments in subsidiaries (Continued)

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

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

9Investments in subsidiaries (Continued)

              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 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 5,000,000 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 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 generation  
70
%
  
70
%

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

  Country ofType ofRegistered
Business nature
and scope
 Percentage of equity interest held 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting 
            
Huaneng Suixian Jieshan Wind Power Generation Co., Ltd. PRCheld directly
RMB
96,500,000
Construction and operation of wind power plants and related projects  100%  100%
Huaneng Taiyuan Dongshan Combined Cycle Co-generation Co., Ltd. PRCheld directly
RMB
10,000,000
Construction and operation of power plants; thermal heating services  100%  100%
Jiangsu Huayi Energy Co., Ltd. PRCheld directly
RMB
5,000,000
Development of new energy; distribution of coal and coal products  100%  100%
HuanengXuzhou Tongshan Wind Power Co., Ltd. PRCheld directly
RMB
169,000,000
Wind power generation  70%  70%
Huaneng Nanjing Co-generation Co., Ltd PRCheld directly
RMB
300,000,000
Construction and operation of power plants; thermal heating services  70%  70%
Huaneng Hunan Guidong Wind Power Generation Co., Ltd. PRCheld directly
RMB
2,000,000
Construction and operation of wind power plants and related projects  100%  100%
Huaneng Nanjing Luhe Wind Power Generation Co., Ltd. PRCheld directly
RMB
5,000,000
Research and development of wind power technology, construction and operation of wind power plants  100%  100%
Huaneng Luoyuan Power Limited Liability Company PRCheld directly
RMB
1,000,000,000
Construction and operation of power plants and related projects  100%  100%
Huaneng Lingang (Tianjin) Gas Co-generation Co., Ltd. PRCheld directly
RMB
180,000,000
Power generation, installation and maintenance of power equipment  100%  100%
Huaneng Lingang (Tianjin) Heat Co-generation Co., Ltd. PRCheld indirectly
RMB
5,000,000
Thermal energy, cold energy
Plumbing pipe installation
  66%  66%
Huaneng Anhui Huaining Wind Power Generation Co., Ltd. PRCheld directly
RMB
80,000,000
Construction and operation of wind power plants and related projects  100%  100%
Huaneng Mianchi Co-generation Limited Liability Company PRCheld directly
RMB
570,000,000
Construction and operation of coal-fired plants and related projects  60%  60%
Huaneng Yingkou Xianrendao Co-generation Co., Ltd. PRCheld directly
RMB
277,690,000
Construction and operation of cogeneration power plants and related projects  100%  100%
Huaneng Nanjing Xingang Comprehensive. Energy Co., Ltd. PRCheld directly
RMB
10,000,000
Construction and operation of heat supply network and related projects  65%  65%
Huaneng Changxing Photovoltaic Power Limited Liability Company PRCheld directly
RMB
16,000,000
Construction and operation of distributed photovoltaic power generation and related projects  100%  100%
F-53F-74

9Investments in subsidiaries (Continued)

              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 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 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 63,800,000 Investment, construction, operation, management of electricity projects of electricity 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 332,000,000 Power generation and supply  
100
%
  
100
%
                 
Huaneng Lingang (Tianjin) Heat Co-generation Co., Ltd. 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 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, operation and management of coal-fired plants and related projects  
60
%
  
60
%
                 
Huaneng Yingkou Xianrendao Co-generation Co., Ltd. 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 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 projects  
100
%
  
100
%

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

  Country ofType of Registered 
Business nature
and scope
 
Percentage of equity interest
held
 
Name of subsidiary incorporationinterest held capital of operations Interest  Voting 
              
Huaneng Rudong Baxianjiao Offshore Wind Power Generation Co., Ltd PRCheld directly 
RMB
610,000,000
 Infrastructure construction of wind power plants  70%  70%
Huaneng Shanxi City of Science & Technology Comprehensive Energy Co., Ltd.  PRCheld directly 
RMB
100,000,000
 Power generation and supply  100%  100%
Huaneng Guilin Gas distributed energy Co., Ltd. PRCheld directly 
RMB
267,450,000
 Construction and operation of power plants and related projects  80%  80%
Huaneng (Dalian) Co-generation Co., Ltd. PRCheld directly 
RMB
12,500,000
 Construction and operation of cogeneration power plants and related projects  100%  100%
Huaneng Zhongxiang Wind Power Generation Co., Ltd. PRCheld directly 
RMB
10,000,000
 Construction and operation of wind power plants and related projects  100%  100%
Huaneng Guanyun Co-generation Co., Ltd. PRCheld directly 
RMB
15,000,000
 Construction and operation of cogeneration power plants and related projects  100%  100%
Huaneng International Power Hongkong Limited Company Hong Kongheld directly 100,000 Shares Construction and operation of power supply, coal project and related investment and financing businesses  100%  100%
TPG Singaporeheld indirectly 
S$
1,183,000,001
 Power generation and related by products, derivatives; developing power supply resources, operating electricity and power sales  100%  100%
TP Utilities Pte Ltd. Singaporeheld indirectly 
S$
255,500,001
 Provision of utility services  100%  100%
Huaneng Shanxi Taihang Power  Generation Limited Liability Company PRCheld directly 
RMB
1,086,440,000
 Pre service related to power generation  60%  60%
Huaneng Mianchi Clean Energy Limited Liability Company PRCheld directly 
RMB
10,000,000
 Power generation, new energy development and utilization  100%  100%
Huaneng Zhuolu Clean Energy Limited Liability Company PRCheld directly 
RMB
10,000,000
 Construction, operation and management of power plants and related projects  100%  100%
Huaneng Tongwei Wind Power Limited Liability Company PRCheld directly 
RMB
248,000,000
 Construction, operation and management of power plants and related projects  100%  100%
Huaneng Yizheng Power Generation Limited Liability Company PRCheld directly 
RMB
200,000,000
 Wind power station design, construction, management and maintenance  100%  100%
F-54F-75

9Investments in subsidiaries (Continued)

              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 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
  
60
%
  
60
%
                  
TP-STM Water Services Pte. Ltd.* 
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
  
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
 
RMB 200,000,000
 
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 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
%

F-76

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

 Country of Type ofRegistered
Business nature
and scope
 
Percentage of equity interest
held
              Percentage of equity interest held 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting  Country of incorporation Type of interest held Registered capital Business nature and scope of operations Interest  Voting 
                        
Huaneng Yancheng Dafeng New Energy Power Generation Limited Liability Company PRCheld directly
RMB
5,000,000
Construction, operation and management of wind power, photovoltaic power plant  100%  100%
Huaneng Shanyin Power Generation Limited Liability Company PRCheld directly
RMB
1,573,000,000
Construction, operation and management of power plants and related projects  51%  51%
Huaneng Jiangsu Energy Sales Limited Liability Company PRCheld directly
RMB
200,000,000
Electric energy, heat energy distribution network, and water supply services; heating pipe network construction and operation  100%  100% 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 PRCheld 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 PRCheld 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 PRCheld 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 PRCheld 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 PRCheld 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 PRCheld directly
RMB
10,000,000
Construction, operation and management of wind power plants and related projects  100%  100%
Huaneng Dandong Photovoltaic Power Limited Liability Company PRCheld directly
RMB
15,000,000
Construction, operation and management of photovoltaic power plants and related projects  100%  100%
                
Huaneng 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 PRCheld directly
RMB
10,000,000
Construction, operation and management of power plants and related projects production of electricity, heat production and sales  100%  100% 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 PRCheld 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 network  
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 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
%

F-55F-77
9Investments in subsidiaries (Continued)

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

              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 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 sales  
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 directly 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 products  
100
%
  
100
%
                 
Huaneng (Shanghai) Power Maintenance Limited Liability Company PRC held directly RMB 200,000,000 Contracting installation and repair of electricity facilities  
100
%
  
100
%

F-78

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

              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 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 (Luoyuan) 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 facilities  
100
%
  
100
%
                 
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
%

F-79


              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 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 directly 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  
100
%
  
100
%
                 
Huaneng Hainan Energy Sales Limited Liability Company 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 facilities  
91.80
%
  
91.80
%
                 
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  
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
%

F-80


              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 
               
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 1,000,000 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
%
                 
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
%


* These companies were newly established in 2018.

F-81


F-56
9Investments in subsidiaries (Continued)

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

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

*These companies were newly established in 2016.

F-57

9Investments in subsidiaries (Continued)

(ii)Subsidiaries acquired from business combinations under common control

 Country ofType ofRegistered
Business nature
and scope
��
Percentage of equity interest
held
              Percentage of equity interest held 
Name of subsidiary incorporationinterest heldcapitalof operations Interest  Voting  Country of incorporation Type of interest held Registered capital Business nature and scope of operations Interest  Voting 
                        
Huaneng (Suzhou Industrial Park) Power Generation Co., Ltd. PRCheld 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.  PRCheld 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.  PRCheld 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  PRCheld 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”) PRCheld 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.  PRCheld 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”)  PRCheld 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
%
  
60
%
                
Huaneng Qidong Wind Power Generation Co., Ltd.  PRCheld directly
RMB
391,738,500
Development of wind power project, production and sales of electricity  65%  65% 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”)  PRCheld directly
RMB
1,537,130,909
Power generation, heat supply, facilities installation, maintenance and related services  55%  55%
Huaneng Beijing Co-generation Limited Liability Company(“Beijing Cogeneration”) (ii)  PRCheld directly
RMB
3,702,090,000
Construction and operation of power plants and related construction projects  41%  66%
                
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”)  PRCheld 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”)  PRCheld 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”)  PRCheld 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)  PRCheld directly
RMB
800,000,000
Construction and operation of power plants and related construction projects  60%  70%
                
Huaneng Chaohu Power Generation Co., Ltd. (“Chaohu Power”) (viii) PRC held directly RMB 840,000,000 Construction, operation, management of electricity projects, development and utilization of clean energy resources  
60
%
  
70
%
                
Huaneng Jingmen Thermal Power Co., Ltd. (“Jingmen Thermal Power”)  PRCheld directly
RMB
780,000,000
General business projects: thermal power, power development, power services  100%  100% PRC held directly RMB 780,000,000 Thermal power, power development and other service  
100
%
  
100
%

F-58F-82

              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 
               
Enshi Qingjiang Dalongtan Hydropwer Development Co., Ltd. (“Dalongtan Hydropower”) 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”) (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”) PRC held directly RMB 606,923,299 Construction, operation, management of electricity projects, development and utilization of clean energy  
100
%
  
100
%
                 
Huaneng Yingcheng Thermal Power Co., Ltd. (“Yingcheng Thermal Power”) 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 The 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
%
                 
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
%

F-83

9Investments in subsidiaries (Continued)

              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 
               
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
%

F-84
(ii)Subsidiaries acquired from business combinations under common control (Continued)

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

              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 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  
76
%
  
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 equipment 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
%

F-85


              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 
               
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
%
                 
Shandong Changdao Wind Power Generation Limited Liability Company (“Changdao Wind Power”) (iv) PRC held indirectly RMB 33,500,000 Wind power, on-grid sales  
48
%
  
60
%
                 
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 Power 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, thermal supply, development and utilization of clean energy resources  
90
%
  
90
%
                 
Shandong Huaneng Liaocheng Thermal Power Co., Ltd. (“Shandong Liaocheng Thermal Power”) (iv) PRC held indirectly RMB 427,740,000 Electric power, thermal production and sales  
60
%
  
75
%
                 
Shandong Huaneng Laiwu Thermal Power Co., Ltd. (“Shandong Laiwu Thermal Power”) (iv) PRC held indirectly RMB 540,000,000 Electric power, thermal production and sales  
64
%
  
80
%
                 
Shandong Huaneng Laizhou Wind Power Generation Co., Ltd. (“Laizhou Wind Power”) (iv) PRC held indirectly RMB 90,000,000 Wind power generation  
64
%
  
80
%


The subsidiaries above and the Company are all controlled by Huaneng Group before and after the acquisitions.
F-86


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

 Country ofType ofRegistered
Business nature
and scope
 
Percentage of equity interest
held
              Percentage of equity interest held 
Name of subsidiary incorporationinterest heldcapitalof 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”) PRCheld directly
RMB
1,822,176,621
Power generation  60%  60%
Huaneng Huaiyin Power Limited Company PRCheld directly
RMB
265,000,000
Power generation  100%  100%
Huaneng Weihai Power Generation Limited Liability Company (“Weihai Power”) PRC held directly RMB 1,822,176,621 Power generation  
60
%
  
60
%
                
Huaneng Huaiyin Power Generation Limited Company PRC held directly RMB 265,000,000 Power generation  
100
%
  
100
%
                
Huade County Daditaihong Wind Power Utilization Limited Liability Company PRCheld directly
RMB
196,400,000
Wind power development and utilization  100%  100% PRC held directly RMB 196,400,000 Wind power development and utilization  
100
%
  
100
%
Huaneng Zhanhua Co-generation Limited Liability Company PRCheld directly
RMB
190,000,000
Production and sales of electricity and steam  100%  100%
                
Huaneng Zhanhua Co-generation Limited Company PRC held directly RMB 190,000,000 Production and sales of electricity and thermal energy  
100
%
  
100
%
                
Shandong Hualu Sea Transportation Limited Company PRCheld 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
%
  
53
%
                
Huaneng Qingdao Port Limited Company PRCheld directly
RMB
219,845,000
Loading and conveying warehousing (excluding dangerous goods), conveying, supply of water carriage materials  51%  51% PRC held directly RMB 219,845,000 Loading and conveying warehousing, conveying, water carriage materials supply  
51
%
  
51
%
Huaneng (Fujian) Harbour Limited Company PRCheld 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 RMB 3,769,140,000 Electricity projects investment, power generation and sales, coal exploitation and investment  
100
%
  
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
%
  
100
%
                
Huaneng Luoyang Co-generation Limited Liability Company PRC held directly RMB 600,000,000 Production and sales of electricity and heating  
80
%
  
80
%
                
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
%
                 
Luoyang Yangguang Co-generation Limited Liability Company (“Yangguang Co-generation”) PRC held indirectly RMB 250,000,000 Production and supply of electricity and heat power  
100
%
  
100
%
                
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
%

F-87

F-59

9Investments in subsidiaries (Continued)

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

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

9Investments in subsidiaries (Continued)
              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 
               
Ruzhou Xuji Wind Power Generation Co., Ltd. PRC held indirectly RMB 4,000,000 Wind power and photovoltaic power generation  
95
%
  
100
%
                 
Hong Kong Energy (iv) (Note 41) Hong Kong held indirectly US$360,000,000 Investment  
40
%
  
100
%
                 
Ruyi Pakistan Energy (iv) (Note 41) 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) (Note 41) Pakistan held indirectly 100,000 shares Power generation operation and maintenance  
40
%
  
100
%

Note:


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


(ii)The Company holds 90% interests in Liangjiang Power, and Liangjiang Power holds 60% interests in Huaqing Energy. Therefore, the Company indirectly holds 54% equity interests in Huaqing Energy.


(iii)According to the voting in concert agreement entered into between the Company 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. According to the voting in concert agreement entered into between the Company 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 Company under the circumstances that their legitimate entitlements are guaranteed. As a result the Company has control over Nanjing Combined Cycle Co-generation.


(iv)These companies are subsidiaries of Shandong Power. The Company holds 80% interests in Shandong Power. Thus, the Company 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 Company 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 Company 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 Company indirectly holds 76.55% interests in Shandong Maintenance Company and Shandong Fuel Company respectively.

The Company directly holds 44% equity interests in Rizhao Power and Shandong Power directly holds 56% interests in Rizhao Power; Thus, the Company holds 88.8% interests in Rizhao Power.

Jiaxiang Power, Qufu Co-generation, Jining Co-generation are wholly-owned subsidiaries of Ruyi Coal Power. Thus, the Company indirectly holds 40% interests in Ruyi Coal Power, Jiaxiang Power, Qufu Co-generation and Jining Co-generation.

Shandong Power acquired 15% equity from another shareholder of Laiwu power. As a result, the Company indirectly holds 76% interests in Laiwu power.

F-88
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 Company has control over these companies.

According to the voting in concert agreement entered into between Hong Kong Investment and the other shareholder in December 2018, 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 Company has control over Hong Kong Energy and its subsidiaries including Huatai Power and Ruyi Pakistan Energy since 31 December 2018. See Note 41.


(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 Ruzhou Clean Energy.


(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.

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


42.
F-61F-89
10Other equity instrument investments

  Note
 
31 December
2018
  
1 January
2018
  31 December 2017 
Equity securities designated at FVOCI (non-recycling) (i)         
Listed security    8,558   9,223   - 
               
Unlisted securities              
10% of Shanxi Xishan Jinxing Energy Co.,Ltd.    1,085,462   1,004,860   - 
9.09% of Ganlong Double-track Railway Co., Ltd.    924,453   1,003,009   - 
Others    64,946   64,496   - 
               
Subtotal    2,074,861   2,072,365   - 
               
Total    2,083,419   2,081,588   - 
               
Available-for-sale financial assets (i)            
Listed security (Fair value measurement)    -   -   9,223 
               
Unlisted securities (Cost measurement)              
10% of Shanxi Xishan Jinxing Energy Co., Ltd.    -   -   531,274 
9.09% of Ganlong Double-track Railway Co., Ltd.    -   -   1,000,000 
Others    -   -   64,496 
               
Subtotal    -   -   1,595,770 
               
Total    -   -   1,604,993 

Note:

(i)Available-for-sale financial assets were reclassified to equity securities designated at FVOCI (non-recycling) upon the initial application of IFRS 9 at 1 January 2018 as the investment is held for strategic purposes.

Available-for-sale financial assets include the following:

  As at 31 December 
  2016  2015 
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 
9.09% of Ganlong Double-track Railway Co., Ltd.  1,000,000   1,000,000 
Others  54,045   54,079 
Subtotal  1,585,319   1,585,353 
Total  3,406,032   5,077,863 

There werewas no impairment provisionsprovision provided on available-for-sale financial assets in 2016, 2015 and 2014.2017.
F-90

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

11Land use rights

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

 2016  2015 
       2018  2017 
Beginning of the year            
Cost  10,059,872   6,482,189   13,775,976   10,525,537 
Accumulated amortization  (1,530,972)  (1,309,076)  (2,128,752)  (1,792,367)
Accumulated impairment losses  (215,134)  (219,269)  (382,439)  (276,823)
        
Net book value  8,313,766   4,953,844   11,264,785   8,456,347 
                
Movement:                
Business combination (Note 39)  61,027   2,996,440 
Business combination (Note 41)  398,591   3,182,914 
Addition  364,280   600,693   260,971   331,683 
Amortization charge for the year  (242,400)  (227,078)  (368,025)  (368,898)
Impairment charge for the year (Note 7)  (51,981)  - 
Disposals and transfer out  (1,969)  (6,036)
Impairment charge for the year  -   (108,590)
Reclassification to assets held for sale (Note 20)  (29,924)  - 
Disposals  (81,788)  (86,631)
Disposal of subsidiaries  -   (146,922)
Currency translation differences  13,624   (4,097)  5,424   4,882 
                
        
End of the year  8,456,347   8,313,766   11,450,034   11,264,785 
        
Cost  10,525,537   10,059,872   14,324,288   13,775,976 
Accumulated amortization  (1,792,367)  (1,530,972)  (2,486,181)  (2,128,752)
Accumulated impairment losses  (276,823)  (215,134)  (388,073)  (382,439)
                
Net book value  8,456,347   8,313,766   11,450,034   11,264,785 

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

Land use rights without ownership certificate

As at 31 December 2016,2018, the Company and its subsidiaries were in the process of applying for the ownership certificate for certain land use right with an aggregate net book value of RMB792RMB543 million (2015: RMB960(2017: RMB1,246 million). The management are of the opinion that the Company and its subsidiaries are entitled to the lawful and valid occupation and use of the above mentioned land.


F-63F-91

12Power generation licenselicenses

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

 2016  2015 
       2018  2017 
Beginning of the year  3,679,175   3,720,959   3,916,246   3,849,199 
                
Movement:                
Currency translation differences  170,024   (41,784)  98,726   67,047 
                
End of the year  3,849,199   3,679,175   4,014,972   3,916,246 

The Company and its subsidiaries acquired the power generation license in connection with the acquisition of Tuas Power. The power generation license was initially recognizedrecognised at fair value at the acquisition date. Tuas Power operates power plants in Singapore pursuant to the license granted by the Energy Market Authority for a period of 30 years from 2003 until 2032. The license was extended to 2044 during 2011 with minimal costs and is subject to further renewal. The Company and its subsidiaries expect that the applicable rules and regulations surrounding the renewal can be complied with based on the current market framework. The Company and its subsidiaries assessed the useful life of the power generation license at 31 December 20162018 as indefinite and therefore the license is not amortized.

Impairment test of power generation license

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

Key assumptions used for value-in-use calculation:

Management has assessed that one of the most sensitive key assumptions is the discount rate which was arrived at based on weighted average cost of capital. The discount rate applied in determining the recoverable amounts of the CGU was 7.54%8.02% (31 December 2015: 7.62%2017: 7.30%). An absolute increase in the discount rate of 0.5% (31 December 2015:2017: 0.5%) would result in approximately RMB1,899RMB1,715 million (31 December 2015: RMB1,7042017: RMB2,043 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, 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%3.5% 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.
F-64F-92

13Mining rights

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

 2016  2015 
       2018  2017 
Beginning of the year            
Cost  2,406,567   1,922,655   2,406,567   2,406,567 
Accumulated impairment losses  (760,296)  -   (760,296)  (760,296)
        
Net book value  1,646,271   1,922,655   1,646,271   1,646,271 
                
Movement:                
Addition  -   483,912   -   - 
Impairment charge for the year  -   (760,296)  (135,085)  - 
                
End of the year  1,646,271   1,646,271   1,511,186   1,646,271 
Cost  2,406,567   2,406,567   2,406,567   2,406,567 
Accumulated impairment losses  (760,296)  (760,296)  (895,381)  (760,296)
        
Net book value  1,646,271   1,646,271   1,511,186   1,646,271 

In 2015,2018, due to the decrease ofslow construction progress and anticipated increasing construction cost input for the coal market price,mine , impairment losslosses for mining rights of approximately RMB760RMB135 million have been recognized for two subsidiaries of the Company.recognised. 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%was 9.55%.


F-65F-93
14Derivative financial instruments

Details of derivative financial instruments are as follows:

 As at 31 December 
 2016  2015  As at 31 December 
       2018  2017 
Derivative financial assets            
－Hedging instruments for cash flow hedge (fuel swap contracts)
  264,535   1 
－Hedging instruments for cash flow hedge (exchange forward contracts)
  107,907   140,977 
－Hedging instruments for cash flow hedge (interest rate swap contracts)
  -   2,691 
－Financial instruments at fair value through profit or loss (fuel swap contracts)
  5,881   39,894 
－Financial instruments at fair value through profit or loss (exchange forward contracts)
  -   949 
－Hedging instruments for cash flow hedge (fuel swap contracts)  25,629   330,966 
－Hedging instruments for cash flow hedge (exchange forward contracts)  9,062   - 
－Financial instruments at fair value through profit or loss (fuel swap contracts)  -   2,726 
－Financial instruments at fair value through profit or loss (exchange forward swap contracts)  14   - 
        
Total  378,323   184,512   34,705   333,692 
                
Less: non-current portion                
－Hedging instruments for cash flow hedge (fuel swap contracts)
  71,341   - 
－Hedging instruments for cash flow hedge (exchange forward contracts)
  28,380   42,353 
－Hedging instruments for cash flow hedge (interest rate swap contracts)
  -   2,691 
－Hedging instruments for cash flow hedge (fuel swap contracts)  2,543   75,328 
－Hedging instruments for cash flow hedge (exchange forward contracts)  3,427   - 
        
Total non-current portion  99,721   45,044   5,970   75,328 
                
Current portion  278,602   139,468   28,735   258,364 
        
Derivative financial liabilities        
－Hedging instruments for cash flow hedge (fuel swap contracts)  357,088   11,794 
－Hedging instruments for cash flow hedge (exchange forward contracts)  21,335   68,102 
－Hedging instruments for cash flow hedge (interest rate swap contracts)  149,117   130,643 
－Financial instruments at fair value through profit or loss (fuel swap contracts)  17,705   125 
－Financial instruments at fair value through profit or loss (exchange forward swap contracts)  47   - 
        
Total  545,292   210,664 
        
Less: non-current portion        
－Hedging instruments for cash flow hedge (fuel swap contracts)  78,587   2,026 
－Hedging instruments for cash flow hedge (exchange forward contracts)  4,384   21,745 
－Hedging instruments for cash flow hedge (interest rate swap contracts)  144,999   124,715 
－Financial instruments at fair value through profit or loss (fuel swap contracts)  3,338   - 
        
Total non-current portion  231,308   148,486 
        
Total current portion  313,984   62,178 

F-66F-94
14Derivative financial instruments (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, 20152017 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 20162018 was US$208144 million (RMB equivalents of RMB1,443RMB988 million) (2015:(2017: US$240176 million (RMB equivalents of RMB1,558RMB1,150 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 exchange forward contracts to hedge its foreign exchange risk arising from highly probable forecast purchase transactions. It also uses fuel oil swap contracts to hedge its fuel price risk arising from highly probable forecast purchases of fuel purchases.

TPG also uses various interest rate swap contracts to hedge floating semi-annual interest payments on borrowings with maturity dates up to 2020. 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 20162018 was S$1,359992 million (RMB equivalents of RMB6,522RMB4,968 million) (2015:(2017: S$1,4001,069 million (RMB equivalents of RMB6,422RMB5,220 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 2018 to June 2044. As at 31 December 2016,2018, these interest rate swap contracts are carried on the consolidated statements of financial position as financial liability of RMB99RMB145 million (2015: financial asset of RMB2.69 million and(2017: financial liability of RMB41.12RMB108 million).
F-67F-95
14Derivative financial instruments (Continued)

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

    Cash flows  Cash flows 
 
Carrying
amounts
  
Contractual
cash flows
   
Within
1 year
  
Between 1
and 5 years
   
After 5
years
  
Carrying
amounts
  
Contractual
cash flows
  Within 1 year  
Between 1
and 5 years
  After 5 years 
                              
As at 31 December 2016               
As at 31 December 2018               
Derivative financial assets                              
Fuel derivatives used for hedging (net settlement)  264,535   264,535   193,194   71,341   -   25,629   25,629   23,086   2,543   - 
                    
Forward exchange contracts used for hedging                                        
- inflows      2,118,946   1,488,071   630,875   -       744,936   534,355   210,581   - 
- outflows      (2,009,205)  (1,407,606)  (601,599)  -       (730,691)  (526,988)  (203,703)  - 
  107,907   109,741   80,465   29,276   -   9,062   14,245   7,367   6,878   - 
Fuel derivatives that do not qualify as hedges (net settlement)  5,881   5,881   5,881   -   - 
                    
Forward exchange contracts that do not qualify as hedges (net settlement)  14   12   12   -   - 
                    
Derivative financial liabilities                                        
Fuel derivatives used for hedging (net settlement)  164,464   (164,464)  (132,792)  (31,672)  -   357,088   (357,088)  (278,501)  (78,587)  - 
                    
Forward exchange contracts used for hedging                                        
- inflows      527,939   475,881   52,058   -       2,425,238   2,059,061   366,177   - 
- outflows      (528,454)  (476,104)  (52,350)  -       (2,433,994)  (2,069,218)  (364,776)  - 
  454   (515)  (223)  (292)  -   21,335   (8,756)  (10,157)  1,401   - 
Net-settled interest rate swaps used for hedging                                        
- net cash inflows/(outflows)  169,201   (228,905)  (113,563)  (115,342)  -   149,117   (151,975)  (37,769)  (47,562)  (66,644)
                    
Fuel derivatives that do not qualify as hedges (net settlement)  619   (619)  (619)  -   -   17,705   (17,705)  (14,366)  (3,339)  - 
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)  47   (32)  (32)  -   - 

  Cash flows 
  
Carrying
amounts
  
Contractual
cash flows
  Within 1 year  
Between 1
and 5 years
  After 5 years 
                
As at 31 December 2017               
Derivative financial assets               
Fuel derivatives used for hedging (net settlement)  330,966   330,966   255,638   75,328   - 
                     
Fuel derivatives that do not qualify as hedges (net settlement)  2,726   2,726   2,726   -   - 
                     
Derivative financial liabilities                    
Fuel derivatives used for hedging (net settlement)  11,794   (11,794)  (9,768)  (2,026)  - 
                     
Forward exchange contracts used for hedging                    
- inflows      2,509,363   2,041,812   467,551   - 
- outflows      (2,568,034)  (2,083,441)  (484,593)  - 
   68,102   (58,671)  (41,629)  (17,042)  - 
Net-settled interest rate swaps used for hedging                    
- net cash inflows/(outflows)  130,643   (154,367)  (82,533)  (71,834)  - 
                     
Fuel derivatives that do not qualify as hedges (net settlement)  125   (125)  (125)  -   - 

F-68F-96


15Goodwill

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 


F-69

15Goodwill (Continued)
  2018  2017 
       
Beginning of the year      
       
Cost  18,435,954   15,391,642 
Accumulated impairment losses  (2,951,834)  (3,255,913)
         
Net book value  15,484,120   12,135,729 
         
Movement:        
Business combination (Note 41)  231,218   3,167,566 
Impairment charge for the year  (409,371)  - 
Disposal of subsidiary-cost  -   (309,269)
Disposal of subsidiary-impairment  -   309,269 
Currency translation differences-cost  273,906   186,015 
Currency translation differences- impairment  (7,646)  (5,190)
         
End of the year  15,572,227   15,484,120 
         
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 

Impairment tests for goodwill

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

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

 2016  2015  2018  2017 
            
PRC Power segment:      ��     
Shandong Power  2,643,990   2,739,818 
Wuhan Power  518,484   518,484 
Hainan Power  506,336   506,336   506,336   506,336 
Wuhan Power  518,484   518,484 
Heilongjiang Power  182,994   265,319 
Yangliuqing Cogeneration  151,459   151,459 
Qinbei Power  109,913   109,913 
Jilin Power  109,826   109,826 
Yueyang Power Company  100,907   100,907   100,907   100,907 
Beijing Cogeneration  95,088   95,088   95,088   95,088 
Yangliuqing Cogeneration  151,459   151,459 
                
Singapore segment:                
Tuas Power  10,381,131   9,922,584   10,828,216   10,561,956 

F-97

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

For the goodwill allocated to Tuas Power, management has based their assessment of recoverable amount on value-in-use calculations. Management prepared the impairment model based on budget approved and various factors, such as inflation, power demand and other factors as well as the terminal value. On average, the growth rates of 3.0%3.5% 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 2.0%.

Discount rates used for value-in-use calculations:

PRC Power segment7.60%~11.32%7.35%-9.63%
Singapore segment7.54%8.02%

Key assumptions used for value-in-use calculations:

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

In 2016, the increase of goodwill in respect of Tuas Power was2018, due to currency translation differences.
F-70

15Goodwill (Continued)

In 2015, due to continuous operating losslower performance of 3 coal-fired plant assets, which did not reach the anticipation of the power plant assetsmanagement 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, thetariff. Impairment losses for 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 amountedapproximately amounting to approximately RMB1,106RMB409 million in total. For Singapore segment,total have been recognised.

In 2018 and 2017, the decreaseincrease 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.

16Other 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 
  2018  2017 
Finance lease receivables*  10,811,603   617,187 
VAT recoverable  3,282,075   2,741,604 
Prepayments for pre-construction cost  987,469   937,161 
Intangible assets **  698,541   697,884 
Profit compensation from Huaneng Group***  440,551   244,533 
Prepaid territorial water use right ****  370,307   374,743 
Prepayments for capacity quota  303,399   303,399 
Prepaid connection fees  113,587   120,486 
Others  2,328,527   1,659,848 
         
Total  19,336,059   7,696,845 


F-98

*Ruyi Pakistan Energy entered into a power purchase agreement with CPPA-G to sell all of the electricity produced with regulated tariff mechanism approved by 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.


**The intangible assets primarily consist of software, patented technologies and etc. In 2016,2018, there is no impairment provided for the intangible assets (2015 and 2014:(2017: RMB nil and RMB nil)Nil).


***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 2018, the fair value of above mentioned contingent consideration from Huaneng Group amounted to RMB991 million was recognised (31 December 2017: RMB860 million), which was recorded in other receivables and assets of RMB551 million, and other non-current assets of RMB440 million, respectively. The profit compensation related to year 2018 of RMB551 million was recorded in “other receivables and assets”.


****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).

F-71

17Inventories

Inventories comprised:

  As at 31 December 
  2016  2015 
       
Fuel (coal and oil) for power generation  5,391,068   3,997,910 
Material and supplies  1,655,357   1,587,211 
   7,046,425   5,585,121 
Less: provision for inventory obsolescence  167,282   162,389 
Total  6,879,143   5,422,732 

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

 As at 31 December 
 2018  2017 
      
Fuel (coal and oil) for power generation  8,150,398   5,684,824 
Material and supplies  1,824,000   1,869,462 
        
  9,974,398   7,554,286 
Less: provision for inventory obsolescence  430,707   168,875 
        
Total  9,543,691   7,385,411 
        
Movements of provision for inventory obsolescence during the years are analyzed as follows:Movements of provision for inventory obsolescence during the years are analyzed as follows: 
        
 2016  2015  2014   2018   2017 
                 
Beginning of the year  (162,389)  (163,458)  (170,296)  (168,875)  (167,282)
Provision  (1,134)  (2,867)  (878)
Provision*  (255,181)  (1,520)
Reversal  1,390   1,039   3,525   1,365   1,782 
Write-offs  -   -   632 
Disposal of subsidiaries  -   162 
Currency translation differences  (5,149)  2,897   3,559   (8,016)  (2,017)
        
End of the year  (167,282)  (162,389)  (163,458)  (430,707)  (168,875)


*In 2018, approximately RMB255 million provision was provided for the fuel oil, which was recognised based on the net realisable value.
F-72F-99

18Other receivables and assets

Other receivables and assets comprised the following:
 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
Prepayments for inventories  252,389   143,446   990,742   387,335 
Prepayments for pre-construction cost  885,051   735,975 
Prepaid income tax  141,423   2,393   134,477   150,838 
Prepayments for capacity quota  303,399   303,399 
Others  121,810   102,854   270,330   181,913 
        
Total prepayments  1,704,072   1,288,067   1,395,549   720,086 
Staff advances  11,939   15,692 
        
Less: loss allowance  4,638   4,638 
        
Total prepayments, net  1,390,911   715,448 
        
Dividends receivable  861,408   305,000   30,000   273,897 
Financial lease receivables  21,247   19,419 
Interest receivables  112   175 
Receivables from sales of fuel  74,578   290,040 
Others  874,998   728,781   1,569,181   1,483,331 
Subtotal other receivables  1,769,704   1,069,067   1,673,759   2,047,268 
Less: provision for doubtful accounts  28,961   27,957 
        
Less: loss allowance  38,531   29,241 
        
Total other receivables, net  1,740,743   1,041,110   1,635,228   2,018,027 
        
Profit compensation from        
Huaneng Group (Note 16)  550,832   615,013 
VAT recoverable  2,008,955   1,678,812   1,927,638   2,607,505 
Financial lease receivables  871,302   45,524 
Designated loan to a joint venture  80,000   80,000   80,000   80,000 
        
        
Gross total  5,562,731   4,115,946   6,499,080   6,115,396 
        
Net total  5,533,770   4,087,989   6,455,911   6,081,517 

Please refer to Note 3537 for details of other receivables and assets due from the related parties.

F-100

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 
F-73

18Other receivables and assets (Continued)
  As at 31 December 
  2018  2017 
       
RMB  1,572,651   1,944,570 
S$ (RMB equivalent)  68,390   53,406 
US$ (RMB equivalent)  7,401   49,292 
PKR (RMB equivalent)  25,317   - 
         
Total  1,673,759   2,047,268 

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

 2016  2015  2014  2018  2017 
               
Beginning of the year  (27,957)  (29,644)  (30,673)  (33,879)  (28,961)
Provision  (1,011)  (9)  -   (24,924)  (5,890)
Reversal/Write-off  7   1,696   1,029 
Reversal/write-off  15,634   972 
        
End of the year  (28,961)  (27,957)  (29,644)  (43,169)  (33,879)

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).

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 

F-74

19Accounts receivable

Accounts receivable comprised the following:

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
Accounts receivable  14,050,096   14,401,665   24,804,671   21,948,753 
Notes receivable  2,432,264   1,977,790   4,621,180   3,610,928 
  16,482,360   16,379,455         
Less: provision for doubtful accounts  88,889   2,054 
  29,425,851   25,559,681 
        
Less: loss allowance  146,913   112,086 
        
Total  16,393,471   16,377,401   29,278,938   25,447,595 

The gross amounts of account receivablesaccounts receivable are denominated in the following currencies:

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
RMB  15,586,989   15,639,091   26,879,470   24,633,465 
S$ (RMB equivalent)  876,956   735,300   1,016,299   922,993 
US$ (RMB equivalent)  18,415   5,064   6,673   3,223 
PKR (RMB equivalent)  1,523,409   - 
        
Total  16,482,360   16,379,455   29,425,851   25,559,681 
F-101

The Company and its subsidiaries usually grant about one month’s credit period 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 period that ranges 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. Ruyi Pakistan Energy entered into the agreement with CPPA-G with one month’s credit period. It is not practicable to determine the fair value of the collaterals that correspond to these accounts receivable. Ruyi Pakistan Energy entered into the power purchase agreement with CPPA-G with one month’s credit period.

As at 31 December 2016,2018, no accounts receivable waswere secured to banks as collateral against loans (2015:(2017: nil).

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:

 2016  2015  2014 
          2018  2017 
Beginning of the year  (2,054)  (11,809)  (6,123)  (112,086)  (88,889)
Provision  (88,818)  (60)  (8,413)  (40,064)  (23,363)
Reversal  397   1,833   2,807   4,728   - 
Write-off  1,682   -   -   607   167 
Transfer from a subsidiary to a joint venture  -   8,126   - 
Currency translation differences  (96)  (144)  (80)  (98)  (1)
        
End of the year  (88,889)  (2,054)  (11,809)  (146,913)  (112,086)

Ageing analysis of accounts receivable was as follows:

  As at 31 December 
  2018  2017 
Within 1 year  28,379,742   24,787,284 
Between 1 to 2 years  833,358   576,564 
Between 2 to 3 years  29,517   155,360 
Over 3 years  183,234   40,473 
         
Total  29,425,851   25,559,681 


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.
F-75

19
Accounts receivable (Continued)

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

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

As at 31 December 2016,2018, the maturity period of the notes receivable ranged from 1 to 12 months (2015:(2017: from 1 to 12 months).
F-102

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 (Note 41). According to the acquisition agreement, part or all of the wind power generators of Laizhou Wind Power could be dismantled upon the requirement of 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 that were past due but not impaired relateIn December 2018, as part of the wind power generators of Laizhou Wind Power have been dismantled, which is the case in the acquisition agreement, Shandong Power intends to a numbersell 80% equity interests of independent customers that have a good track record withLaizhou Wind Power back to Taishan Power. The assets and liabilities of Laizhou Wind Power are presented as disposal group held for sale in the Companyconsolidated financial statements.

As at 31 December 2018, the disposal group comprised the following assets and its subsidiaries. Basedliabilities.

As at 31
December 2018
Property, plant and equipment
and other non-current assets554,033
Land use rights29,924
Other non-current assets1,932
Inventories4
Other receivables and assets1,655
Accounts receivable45,296
Bank balances and cash15,104
Assets held for sale647,948
Long-term loans100,000
Accounts payable and other liabilities66,827
Taxes payable206
Short-term loans466,000
Current portion of long-term loans31,400
Liabilities held for sale664,433
Less: short-term loans from Shandong Power300,000
Liabilities held for sale364,433

The non-recurring fair value measurement for the disposal group was based on past experience, management believes thatthe consideration in the equity transfer agreement, which has been categorised as Level 3 fair value.

There is no impairment allowance is necessarycumulative income or expenses included in respect of these balances as there has not been a significant change in credit quality andother comprehensive income relating to the balances are still considered fully recoverable.disposal group.
F-103

F-76

2021Share capital

 2016  2015 
             2018  2017 
 
Number
of shares
  Share capital  
Number
of shares
  Share capital  Number of shares  Share capital  Number of shares  Share capital 
    RMB ’000     RMB ’000     RMB ’000     RMB ’000 
                        
As at 1 January                        
A shares  10,500,000,000   10,500,000   10,500,000,000   10,500,000   10,500,000,000   10,500,000   10,500,000,000   10,500,000 
Overseas listed foreign shares  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   15,200,383,440   15,200,383   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   10,500,000,000   10,500,000 
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   15,200,383,440   15,200,383 

In November 2015,October 2018, the Company issued 780,000,000 H497,709,919 A shares with a par value of RMB1.00,RMB 1.00, at a price of HK$7.32RMB 6.55 per HA share. Net proceeds from the issuance amounted to HK$5.69RMB 3.25 billion after deducting issuance costs from gross proceeds of HK$5.71 billion.costs. The difference between the net proceeds and the addition to share capital is recorded in capital surplus.

All shares issued by
22Other equity instruments


(a)Other equity instruments as at 31 December 2018

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 perpetual None None
Yingda Insurance Financing Plan (2nd) September 2018 Equity Instrument  5.79%  —   —   827,000 perpetual None None
Yingda Insurance Financing Plan (3rd) September 2018 Equity Instrument  5.79%  —   —   890,000 perpetual None None
Total                  10,000,000        


(b)Major Provisions

In 2017, the Company issued perpetual corporate bonds with the aggregate net proceeds of approximate RMB5,000 million. The perpetual corporate bonds are issued at par value with 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 (distributions to ordinary shareholders of the Company or reduction of the registered capital of the Company) occurred.

F-104

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.

In 2018, the Company issued three tranches of Yingda Insurance Financing Plan (“the financing plan”) with the aggregate proceeds of RMB5,000 million. The financing 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 (distributions to ordinary shareholders of the Company or reduction of the registered capital of the Company) occurred.

The financing 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.

The perpetual corporate bonds and financing plan were fully paid. Therecorded as equity in the consolidated financial statements. During the year ended 31 December 2018, 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 RMB 342 million.

21
(c)Changes of other equity instruments during 2018

  As at 1 January 2018  issuance  Cumulative distributions  As at 31 December 2018 
Type of Instruments Number  Amount  Number  Amount  Accrual distribution  Distribution payment  Number  Amount 
     RMB ’000     RMB ’000  RMB ’000  RMB ’000     RMB ’000 
Bond A  25,000,000   2,533,872   -   -   126,250   (126,250)  25,000,000   2,533,872 
Bond B  25,000,000   2,534,678   -   -   129,250   (129,250)  25,000,000   2,534,678 
Yingda Insurance Financing Plan (1st)  —   -   —   3,283,000   58,609   (52,801)  —   3,288,808 
Yingda Insurance Financing Plan (2nd)  —   -   —   827,000   14,498   (13,035)  —   828,463 
Yingda Insurance Financing Plan (3rd)  —   -   —   890,000   13,742   (12,167)  —   891,575 
Total      5,068,550       5,000,000   342,349   (333,503)      10,077,396 

F-105

23Surplus reserves

  As at 
  1 January 20162018 and 
  31 December 20162018 
    
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 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 2016,2018, the Company made no provision this year.

Appropriation of discretionary surplus reserve is proposed by the Board of Directors, and approved by the general meeting of shareholders. This reserve can be used to make up any losses incurred in prior years or to increase the share capital after obtaining relevant approvals. For the years ended 31 December 20162018 and 2015,2017, no provision was made to the discretionary surplus reserve.
F-77

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 2016,2018, in accordance with PRC GAAP and IFRS, the balance of retained earnings for the Company and its subsidiaries amounted to approximately RMB39.212RMB30.802 billion and RMB38.690RMB34.665 billion, respectively; and the balance of retained earnings for the Company amounted RMB35.416RMB35.231 billion and RMB32.349RMB33.719 billion, respectively.

F-106

2224Dividends of ordinary shares and cumulative distribution of other equity instruments


(a)Dividends of ordinary shares

On 2119 March 2017,2019 the Board of Directors proposed a cash dividend of RMB0.29RMB0.1 per share, totaling approximately RMB4,408RMB1,570 million. This proposal is subject to the approval of the shareholders at the annual general meeting.

On 23 June 2016,3 May 2018, upon the approval from the annual general meeting of the shareholders, the Company declared 20152017 final dividend of RMB0.47 (2014: RMB0.38)RMB0.1 (2016: RMB0.29) per ordinary share, totaling approximately RMB7,144RMB1,520 million (2014: RMB5,480(2016: RMB4,408 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 2018, net profit attributable to holders of other equity instruments, based on the applicable rate, was RMB342 million, and the cumulative distribution paid-in 2018 was RMB334 million.

25Long-term loans

Long-term loans comprised the following:

  As at 31 December 
  2016  2015 
Loans from Huaneng Group      
and its subsidiaries (a)  3,818,807   2,696,225 
Bank loans and other loans (b)  70,732,439   75,683,003 
   74,551,246   78,379,228 
Less: Current portion of long-term loans  9,560,885   12,351,205 
Total  64,990,361   66,028,023 
  As at 31 December 
  2018  2017 
Loans from Huaneng Group and its subsidiaries (a)  4,724,753   7,427,183 
Bank loans and other loans (b)  145,444,257   117,702,233 
         
   150,169,010   125,129,416 
         
Less: current portion of long-term loans  20,620,849   18,098,458 
         
Total  129,548,161   107,030,958 

F-107


(a)Loans from Huaneng Group and its subsidiaries

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

 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”)
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     
F-78
  As at 31 December 2017 
  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  2,794,780   2,794,780   244,500   2,550,280   4.28%-4.66%
                     
Loans from Huaneng Tiancheng Financial Leasing 
Secured                    
RMB                    
- Variable rate  3,967,178   3,967,178   1,878,994   2,088,184   4.06%-4.51%
                     
Total      7,427,183   2,123,494   5,303,689     


F-108

23
Long-term(b)Bank loans (Continued)and other loans

(a)Loans from Huaneng Group and its subsidiaries (Continued)
Details of bank loans and other loans are as follows:

  As at 31 December 2015 
  
Original
currency
  
RMB
equivalent
  
Less: current
portion
  
Non-current
portion
  
Annual
interest rate
 
   ’000             
Loans from Huaneng Group                
Unsecured                
   RMB  665,015   665,015   665,015   -   4.28%-5.54%
                     
Loans from HIPDC                    
Unsecured                    
   RMB  1,700,210   1,700,210   1,700,210   -   4.28%-5.30%
                     
Loans from Huaneng Finance                    
Unsecured                    
   RMB  331,000   331,000   72,000   259,000   4.41%-5.84%
                     
Total      2,696,225   2,437,225   259,000     
Note: In 2016,
  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     

  As at 31 December 2017 
  Original currency  RMB equivalent  Less: Current portion  Non-current portion  Annual interest rate 
   ’000             
Secured                
RMB                
- Fixed rate  7,080,379   7,080,379   1,213,150   5,867,229   4.41%-4.90%
- Variable rate  4,117,055   4,117,055   657,231   3,459,824   4.66%-4.90%
Unsecured                    
RMB                    
- Fixed rate  14,981,859   14,981,859   3,179,426   11,802,433   2.00%-5.00%
- Variable rate  76,467,082   76,467,082   10,013,829   66,453,253   1.80%-6.03%
US$                    
- Variable rate  347,676   2,271,785   418,163   1,853,622   1.74%/2.26%
S$                    
- Variable rate  2,538,619   12,396,329   419,570   11,976,759   2.73%/4.25%
€                    
- Fixed rate  30,463   237,680   67,207   170,473   1.30%-2.15%
JPY                    
- Fixed rate  2,592,661   150,064   6,388   143,676   0.75%
                     
Total      117,702,233   15,974,964   101,727,269     

As at 31 December 2018, long-term loans of RMB986 million (31 December 2017: RMB4,605 million) were secured by certain property, plant and equipment with net book value amounting to approximately RMB1,756 million (31 December 2017: RMB5,167 million).

Thereinto, certain subsidiaries of the Company enforcedhad the sales and leaseback agreements with Tiancheng Financial Leasing.Leasing and other financial leasing companies in previous years. 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 2016,2018, the power generation equipment mentioned above has a total carrying amount of RMB2.999 billionRMB769 million and RMB987 million (31 December 2017: RMB4,064 million and RMB1,103 million) while the long-term borrowings is RMB464 million and RMB522 million (31 December 2017: RMB3,967 million and RMB638 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     

financial leasing companies, respectively.

F-79F-109
23Long-term loans (Continued)

(b)Bank loans and other loans (Continued)


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

As at 31 December 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).

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 2016,2018, long-term loans of approximately RMB9,032RMB8,938 million were secured by future electricity and heat revenue (31 December 2015: RMB9,5582017: RMB10,559 million).

The maturity of long-term loans is as follows:

 Loans from Huaneng Group and its subsidiaries  Bank loans and other loans  
Loans from
Huaneng Group
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  2018  2017  2018  2017 
                        
1 year or less  855,222   2,437,225   8,705,663   9,913,980   610,465   2,123,494   20,010,384   15,974,964 
More than 1 year but no more than 2 years  715,400   62,000   11,420,746   12,028,176   760,580   1,689,582   27,940,579   19,039,483 
More than 2 years but no more than 3 years  953,082   68,000   11,081,242   9,134,791   1,104,684   1,281,082   33,477,976   18,624,576 
More than 3 years but no more than 4 years  928,082   2,000   7,769,955   9,219,121   805,024   294,020   14,109,277   16,388,976 
More than 4 years but no more than 5 years  232,021   2,000   7,618,953   6,404,924   97,000   728,225   11,216,306   11,927,930 
More than 5 years  135,000   125,000   24,135,880   28,982,011   1,347,000   1,310,780   38,689,735   35,746,304 
  3,818,807   2,696,225   70,732,439   75,683,003                 
  4,724,753   7,427,183   145,444,257   117,702,233 
Less: amount due within 1 year included under current liabilities  855,222   2,437,225   8,705,663   9,913,980   610,465   2,123,494   20,010,384   15,974,964 
                
Total  2,963,585   259,000   62,026,776   65,769,023   4,114,288   5,303,689   125,433,873   101,727,269 

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

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
1 year or less  2,987,045 �� 3,354,579   6,496,298   5,071,743 
More than 1 year but not more than 2 years  2,577,363   2,784,037   5,258,275   4,225,736 
More than 2 years but not more than 5 years  4,912,222   5,784,420   9,028,758   7,903,397 
More than 5 years  3,133,578   4,325,853   5,289,799   4,864,084 
                
Total  13,610,208   16,248,889   26,073,130   22,064,960 


F-80
2426Long-term bonds

The Company issued bonds with maturity of 5 years, 7 years and 10 years in December 2007 with face values of RMB1 billion, RMB1.7 billion and RMB3.3 billion bearing annual interest rates of 5.67%, 5.75% and 5.90%, respectively. The total actual proceeds received by the Company were approximately RMB5.885 billion. These bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rates of those bonds are 6.13%, 6.10% and 6.17%, respectively. Interest paid per annum during the tenure of the bonds is RMB57 million, RMB98 million and RMB195 million, respectively. The bond with original maturity of 5 years had matured in December 2012 and the Company repaid the principal of RMB1 billion. The bond with original maturity of 7 years had matured in December 2014 and the Company repaid the principal of RMB1.7 billion. As at 31 December 2016, interest payables for the unmatured bonds amounted to approximately RMB3.73 million (31 December 2015: RMB3.72 million).

The Company also issuedcorporate bonds with maturity of 10 years in May 2008 with a face value of RMB4 billion bearing an annual interest rate of 5.20%. The actual proceeds received by the Company were approximately RMB3.933 billion. These bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rate of bond is 5.42%. Interest paid per annum during the tenure of the bonds is RMB208 million. As at 31 December 2016, interest payable for these bonds amounted to approximately RMB135.06 million (31 December 2015: RMB134.69 million).

In November 2011,The bond with the Company issued non-public debt financing instrument withoriginal maturity of 510 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 2016May 2018 and the Company repaid the principal of RMB5RMB4 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.
F-81

24
Long-term bonds (Continued)

The Company issued medium-term notes with maturity of 5 years in July 2014 with a face value of RMB4 billion bearing an annual interest rate of 5.30%. The actual proceeds received by the Company were approximately RMB3.988 billion. These notes are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the notes fall due. The annual effective interest rate of these notes is 5.37%. Interest paid per annum during the tenure of the notes is RMB212 million. As at 31 December 2016,2018, interest payable for the bonds amounted to approximately RMB99.32 million (31 December 2015: RMB99.052017: RMB99.32 million).

F-110

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 2016,2018, interest payable for the bonds amounted to approximately RMB57.78 million (31 December 2017: RMB57.78 million) and RMB26.43 million (31 December 2017: RMB26.43 million), respectively.

The Company issued medium-term notes with maturity of 5 years in July 2017 with a face value of RMB5 billion bearing an annual interest rate of 4.69%. The actual proceeds received by the Company were approximately RMB5 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 those notes is 4.69%. Interest paid per annum during the tenure of the notes is RMB234.50 million. As at 31 December 2018, interest payable for the notes amounted to approximately RMB111.15 million (31 December 2017: RMB111.15 million).

The Company issued debt financing instrument with maturity of 3 years in July 2017 with a face value of RMB500 million bearing an annual interest rate of 4.75%. The actual proceeds received by the Company were approximately RMB499 million. These bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rate of those bonds is 4.82%. Interest paid per annum during the tenure of the bonds is RMB23.75 million. As at 31 December 2018, interest payable for the bonds amounted to approximately RMB11.02 million (31 December 2017: RMB11.02 million).

The Company issued corporate bonds with maturity of 3 years in November 2017 with a face values of RMB2.3 billion bearing an annual interest rates of 4.99%. The actual proceeds received by the Company were approximately RMB2.299 billion. These bonds are denominated in RMB and issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rate of those bonds is 4.99%. Interest paid per annum during the tenure of the bonds is RMB114.77 million, respectively. As at 31 December 2018, interest payable for the bonds amounted to approximately RMB17.61 million. (31 December 2017: RMB17.61 million)

The Company issued corporate bonds with maturity of 3 years and 10 years in April 2018, September 2018 with face values of RMB1.5 billion and RMB5 billion bearing annual interest rates of 4.90% and 5.05%, respectively. The actual proceeds received by the Company were approximately RMB1.499 billion, RMB4.999 billion respectively. These bond 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 4.90% and 5.05%, respectively. Interest paid per annum during the tenure of the bonds is RMB73.50 million and RMB252.50 million, respectively. As at 31 December 2018, interest payable for the bonds amounted to approximately RMB54.77 million and RMB78.17 million, respectively.

Please refer to Note 35(c) for detailsThe Company issued medium-term notes with maturity of long-term bonds3 years in May 2018, July 2018 with a face value of RMB3 billion and RMB2 billion bearing an annual interest rate of 4.80% and 4.41% respectively. The actual proceeds received by the Company were approximately RMB2.99 billion and RMB1.99 billion respectively. 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 those notes are 4.91% and 4.97% respectively. Interest paid per annum during the tenure of the notes are RMB144 million and RMB88.20 million. As at 31 December 2018, interest payable for the notes amounted to approximately RMB96.26 million and RMB42.05 million, respectively.
F-111

The Company guaranteedissued debt financing instrument with maturity of 3 years in July 2018 with a face value of RMB2.5 billion bearing an annual interest rate of 4.68%. The actual proceeds received by HIPDCthe Company were approximately RMB2.49 billion. These bonds are denominated in RMB and government-related banks.issued at par. Interest is payable annually while principal will be paid when the bonds fall due. The annual effective interest rate of those bonds is 4.81%. Interest paid per annum during the tenure of the bonds is RMB117 million. As at 31 December 2018, interest payable for the bonds amounted to approximately RMB55.78 million.

F-82
2527Other 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 
  As at 31 December 
  2018  2017 
       
Finance lease payables(a)  1,442,174   1,600,106 
Government grants        
-Environmental subsidies(b)  1,224,878   1,245,810 
-Other government grants  320,083   179,226 
Contract liabilities (c)  2,248,682   - 
Other deferred income (c)  70,211   1,825,614 
Others  1,114,754   969,052 
         
Subtotal  6,420,782   5,819,808 
         
Current portion of finance lease payables  (326,048)  (470,985)
Current portion of other non-current liabilities  (149,598)  (64,361)
         
Subtotal  (475,646)  (535,346)
         
Total  5,945,136   5,284,462 


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

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
Within 1 year  605,806   574,415   415,962   500,790 
After 1 year but within 2 years  266,792   596,160   341,415   312,125 
After 2 years but within 3 years  82,470   240,793   327,239   281,990 
After 3 years  181,345   136,386   674,355   674,256 
  1,136,413   1,547,754         
  1,758,971   1,769,161 
        
Less: total future interest expense  47,567   125,182   316,797   169,055 
        
Total  1,088,846   1,422,572   1,442,174   1,600,106 



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


(c)Upon the adoption of IFRS 15, upfront fees received from heat customers related to the heating pipeline were reclassified from “other non-current liabilities - other deferred income” to “other non-current liabilities - contract liabilities” (Note 2(b)).


(d)In 2016,2018, the asset-related government grants which were credited to the statement of comprehensive income amounted to RMB102.21RMB132.82 million (2015: RMB98.88(2017: RMB140.13 million).
F-83F-112

2628Accounts payable and other liabilities

Accounts payable and other liabilities comprised:

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
Accounts and notes payable  12,059,004   9,403,088   14,683,707   15,496,475 
Amounts received in advance  365,887   472,886 
Payables to contractors for construction  10,832,444   11,425,575   12,353,097   14,491,632 
Retention payables to contractors  1,445,383   1,200,724   1,557,737   2,008,106 
Amounts received in advance  -   1,504,926 
Accrued interests  676,462   874,333   1,152,767   947,302 
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   5,391,372   4,451,691 
                
Total  28,325,227   26,185,764   35,138,680   38,900,132 

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 2016,2018 and 2017, there waswere no notes payable secured by notes receivable (2015: notes payable of RMB14 million was secured by notes receivable with net book value amounted to RMB14 million).receivable.

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  2018  2017 
            
RMB  26,801,242   24,773,457   33,354,665   36,399,243 
S$ (RMB equivalent)  669,797   517,192   561,064   556,881 
US$ (RMB equivalent)  479,179   392,953   1,075,678   436,358 
JPY (RMB equivalent)  6,917   29,264   10,088   2,469 
EUR (RMB equivalent)  2,205   12   -   255 
PKR (RMB equivalent)  137,185   - 
                
Total  27,959,340   25,712,878   35,138,680   37,395,206 

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

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
Within 1 year  11,902,522   9,280,736   14,423,179   15,201,380 
Between 1 to 2 years  100,092   78,682   143,514   196,082 
Over 2 years  56,390   43,670   117,014   99,013 
                
Total  12,059,004   9,403,088   14,683,707   15,496,475 

F-84
2729Taxes payable

Taxes payable comprises:

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
VAT payable  439,304   663,243   867,615   619,329 
Income tax payable  440,791   1,054,246   231,299   430,703 
Others  209,010   353,982   375,523   252,178 
                
Total  1,089,105   2,071,471   1,474,437   1,302,210 

F-113
2830Short-term bonds

The Company issued unsecured super short-term bonds with face valuesvalue of RMB5RMB4 billion, RMB2 billion, RMB1 billion and RMB3RMB4 billion bearing annual interest rates of 4.44%4.10%, 4.19%, 4.17% and 3.17%4.17% in April 2015October 2017, November 2017, November 2017 and August 2015.December 2017, respectively. Such bonds are denominated in RMB, issued at parface value and mature in 366180 days, 180 days, 180 days and 90 days. The annual effective interest rates of these bonds are 4.86%4.22%, 4.35%, 4.19% and 3.58%. The4.35%, respectively. These bonds had matured and were fully repaid in April 20162018, May 2018, May 2018 and August 2016March 2018 respectively.

The Company issued unsecured super short-term bonds with face values of RMB2RMB4 billion, RMB2 billion, RMB2 billion, RMB4 billion, RMB2.5 billion, RMB4 billion, RMB2 billion, RMB2 billion, RMB4 billion and RMB5RMB 2 billion bearing annual interest rates of 3.11%4.35%, 3.10% 4.35%, 3.38%4.40%, 4.45%, 4.25%, 4.08%, 3.98%, 3.80%, 4.05% and 3.05%,2.80% in February 2018, March 2018, March 2018, March 2018, May 2018, May 2018, May 2018, May 2018, June 2015, June 2015, June 20152018 and July 2015,August 2018 respectively. Such bonds are denominated in RMB, issued at face value and mature in 27090 days, 90 days, 150 days, 180 days, 180 days, 150 days, 180 days, 90 days, 180 days and 90 days from the issuance dates.date. The annual effective interest rates of these bonds are 3.42%4.42%, 3.41%4.38%, 3.69%4.53%, 4.59%, 4.29%, 4.22%, 4.10%, 3.88%, 4.21% and 3.36%,2.88% respectively. These bonds were fully repaid in March 2016, March 2016, March 2016May 2018, May 2018, August 2018, September 2018, October 2018, September 2018, November 2018, August 2018, November 2018 and April 2016November 2018 respectively.

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

28Short-term bonds (Continued)

The Company issued unsecured super short-term bonds with face valuesvalue of RMB2.5 billion, RMB2 billion, RMB 2 billion, RMB2 billion, RMB2 billion RMB4 billion, RMB3 billion, RMB3 billion, RMB4 billion, RMB2 billion, RMB3 billion and RMB2RMB 1 billion bearing annual interest rates of 2.59%rate 3.20%, 2.48%2.78%, 2.48%3.05%, 2.42%3.10%, 2.62%, 2.73%, 2.50%, 2.79%, 2.98%2.78% and 3.45%3.30% in March 2016, March 2016, March 2016, April 2016, April 2016, May 2016, July 2016,October 2018, November 2016,2018, November 20162018, November 2018, November 2018 and December 2016,2018 respectively. Such bonds are denominated in RMB, issued at face value and maturematured in 270180 days, 27090 days, 270180 days, 270180 days, 270 days, 270 days, 270 days, 270 days, 18090 days and 270 days from the issuance dates respectively.date.  The annual effective interest rates of these bonds are 2.90%3.23%, 2.79%2.83%, 2.79%3.13%, 2.73%3.13%, 2.93%, 3.04%, 2.81%, 3.10%, 3.19%2.83% and 3.78% respectively. The three bonds issued in March were fully repaid in November 2016, December 2016 and December 20163.34% respectively. As at 31 December 2016,2018, interest payables for the outstandingthese bonds amounted to approximately RMB70.28RMB16.2 million, RMB54.70RMB7.01 million, RMB49.14RMB6.52 million, RMB46.85RMB 6.80 million, RMB7.95 million, RMB11.02RMB5.18 million and RMB5.10RMB2.35 million respectively.

2931Short-term loans

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 2018  As at 31 December 2017 
 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  435,856   435,856   3.41%-6.90%  24,000   24,000   4.71%-5.50%
- 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  11,740,658   11,740,658   3.30%-4.90%  10,450,248   10,450,248   3.92%-4.35%
- Variable rate  47,227,150   47,227,150   3.92%-4.65%  69,777,100   69,777,100   3.74%-4.35%
US$                        
- Variable rate  180,401   1,238,131   3.79%  -   -   - 
PKR                        
- Variable rate  6,500,000   321,977   11.51%  -   -   - 
                                                
Total      57,668,874           49,883,489           61,038,772           80,251,348     

As at 31 December 2016,2018, short-term loans of RMB126RMB461 million (31 December 2015: RMB3072017: RMB24 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.
F-114

As at 31 December 2016,2018, short-term loans of RMB1,560 million (31 December 2017: Nil) represented the guaranteed loan borrowed by Ruyi Pakistan Energy, of which US$0.18 billion(RMB equivalents of RMB 1,238 million) is guaranteed by Huaneng Group and Ruyi Technology Group on the proportion of the shareholding basis and PKR6.5 billion(RMB equivalents of RMB 322 million) is guaranteed by Shandong Luyi Power International Limited Company (“Luyi Power”) with an irrevocable stand-by letter of credit amounting to USD66 million.

As at 31 December 2018, short-term loan borrowed from Huaneng Capital Services Co., Ltd. (“Huaneng Capital Services”) amounted to RMB50 million were secured by future electricity revenue (31 December 2017: Nil)

As at 31 December 2018, short-term loans borrowed from Huaneng Finance amounted to RMB9,454 million (31 December 2017: RMB6,505 million) with annual interest rate ranged from 4.13% to 4.35%(31 December 2017: from 3.92% to 4.35%).

As at 31 December 2017, a short-term loan borrowed from Xi’an Thermal Power Research Institute Co., LtdLtd. (“Xi’an Thermal”) amounted to RMB100 million (31 December 2015: nil) with annual interest rate of 3.92%4.13%. As at 31 December 2018, the loan was fully repaid.

As at 31 December 2016,2017, short-term loans borrowed from a subsidiary of Huaneng FinanceEnergy & Communications Holdings Co., Ltd. amounted to RMB3,355RMB753 million (31 December 2015: RMB2,375.5 million) with annual interest rate ranged from 3.92% to 4.13%(. As at 31 December 2015: from 3.92% to 5.32%).
F-86
2018, the loans were fully repaid.

3032Deferred income tax assets and liabilities

The deferred income tax assets and liabilities are as follows:

 As at 31 December 
 2016  2015  As at 31 December 
       2018  2017 
Deferred income tax assets before offsetting  2,432,552   2,389,857   3,903,331   3,604,577 
Offset amount  (1,168,595)  (1,325,466)  (1,620,746)  (1,304,486)
                
Deferred income tax assets after offsetting  1,263,957   1,064,391   2,282,585   2,300,091 
                
Deferred income tax liabilities before offsetting  (3,431,347)  (3,819,609)  (5,486,905)  (5,871,166)
Offset amount  1,168,595   1,325,466   1,620,746   1,304,486 
                
Deferred income tax liabilities after offsetting  (2,262,752)  (2,494,143)  (3,866,159)  (4,566,680)
                
  (998,795)  (1,429,752)  (1,583,574)  (2,266,589)

F-115

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

 2016  2015  2014  2018  2017 
               
Beginning of the year  (1,429,752)  (926,481)  (1,380,059)  (2,266,589)  (998,795)
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)
Adjustment on initial application of IFRS 9  (106,649)  - 
        
Adjusted balance at beginning of the year  (2,373,238)  (998,795)
Business combination (Note 41)  (68,083)  (2,322,513)
Disposal of subsidiaries  -   17,407 
Credited to profit or loss (Note 34)  775,820   724,712 
Credited to other comprehensive income  100,966   330,834 
Currency translation differences  (38,706)  15,195   31,980   (19,039)  (18,234)
                    
End of the year  (998,795)  (1,429,752)  (926,481)  (1,583,574)  (2,266,589)


F-87F-116
30Deferred income tax assets and liabilities (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 

F-88
30Deferred income tax assets and liabilities (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  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 2017  17,476   13,915   607,154   538,204   42,123   205,009   230,988   777,683   2,432,552 
                                     
Business combination  -   -   -   574,600   5,052   -   139,387   414,891   1,133,930 
Disposal of subsidiaries  -   -   (10,686)  (9,962)  -   -   (5,566)  (52,270)  (78,484)
(Charged)/credited to profit or loss  -   (493)  (2,593)  (70,209)  7,076   (25,433)  196,613   20,026   124,987 
Charged to other comprehensive income  (11,905)  -   -   -   -   -   -   -   (11,905)
Currency translation differences  -   -   82   -   -   -   -   3,415   3,497 
                                     
As at 31 December 2017  5,571   13,422   593,957   1,032,633   54,251   179,576   561,422   1,163,745   3,604,577 
                                     
Business combination (Note 41)  -   -   -   -   -   -   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 




F-89F-117
30Deferred income tax assets and liabilities (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  Other  Total 
As at 1 January 2017  (18,399)  (348,537)  (891,155)  (1,149,054)  (654,363)  (129,383)  (72,432)  (168,024)  (3,431,347)
                                     
Business combination  -   (1,736)  (148,129)  (3,209,672)  -   -   -   (96,906)  (3,456,443)
Disposal of subsidiaries  -   -   1,761   22,162   -   -   68,696   3,272   95,891 
Credited to profit or loss  -   -   27,457   525,780   -   -   1,327   45,161   599,725 
                                     
(Charged)/credited to other comprehensive income  (5,558)  348,297   -   -   -   -   -   -   342,739 
                                     
Currency translation differences  (304)  -   (540)  (9,490)  (11,397)  -   -   -   (21,731)
 ��                                   
As at 31 December 2017  (24,261)  (1,976)  (1,010,606)  (3,820,274)  (665,760)  (129,383)  (2,409)  (216,497)  (5,871,166)
                                     
Adjustment on initial application of IFRS9  -   (106,649)  -   -   -   -   -   -   (106,649)
                                     
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)
                                     
Business combination(Note 41)  -   -   -   (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)




F-118
As at 31 December 20162018 and 2015,2017, taxable temporary differences relating to interest in equity method investees amounted to RMB3.39RMB3.08 billion and RMB3.78billion,RMB2.95 billion, respectively. No deferred tax liabilities were recognizedrecognised as at 31 December 20162018 and 20152017 as dividends from investments in associates and joint ventures are exempted from the PRC income tax and the Company has no plan to dispose any of these investees in the foreseeable future.

As at 31 December 20162018 and 2015,2017, taxable temporary differences relating to the undistributed profit of a wholly-owned foreign subsidiarysubsidiaries amounted to RMB3.54RMB2.53 billion and RMB3.78RMB3.06 billion, respectively. No deferred tax liabilities were recognizedrecognised in respect of the tax that would be payable on the distribution of these retained profit as at 31 December 20162018 and 20152017 as the Company controls the dividend policy of the subsidiary, and it has been determined that it is probable that the profits will not be distributed in the foreseeable future.

In accordance with the accounting policy set out in Note 2(s)2(w), the Company and its subsidiaries 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:

 As at 31 December 
 2016  2015  As at 31 December 
       2018  2017 
            
Deductible temporary differences  2,957,316   2,940,730   5,324,572   4,672,788 
Unused tax losses  6,669,820   6,990,624   9,581,856   8,665,079 
                
Total  9,627,136   9,931,354   14,906,428   13,337,867 

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

  As at 31 December 
  2016  2015 
       
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 
2020  1,061,468   1,120,428 
2021  1,449,106   - 
         
Total  6,669,820   6,990,624 
  As at 31 December 
  2018  2017 
       
Year of expiry      
2018  -   1,557,045 
2019  1,553,294   1,579,066 
2020  1,520,528   1,524,531 
2021  1,438,360   1,558,573 
2022  2,359,946   2,445,864 
2023  2,709,728   - 
         
Total  9,581,856   8,665,079 

3133Additional financial information to the consolidated statements of financial position

As at 31 December 2016,2018, the net current liabilities of the Company and its subsidiaries amounted to approximately RMB93,230RMB76,407 million (2015: RMB90,271(2017: RMB107,413 million). On the same date, total assets less current liabilities were approximately RMB184,643RMB281,697 million (2015: RMB185,030(2017: RMB240,639 million).
F-90F-119

3234Income tax expense

 For the year ended 31 December  For the year ended 31 December 
 2016  2015  2014  2018  2017 
               
Current income tax expense  3,905,968   6,386,149   6,028,790   1,418,993   1,942,238 
Deferred income tax (Note 30)
  (440,817)  (687,206)  (541,582)
Deferred income tax (Note 32)  (775,820)  (724,712)
                    
Total  3,465,151   5,698,943   5,487,208   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 and 2014:(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  For the year ended 31 December 
          2018  2017 
               
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%  27.82%  26.13%
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 tax losses not recognised  26.83%  18.45%
Effect of deductible temporary differences not recognised  5.92%  6.04%
Effect of non-taxable income  (2.89%)  (1.77%)  (1.86%)  (28.53%)  (12.37%)
Effect of non-deductible expenses  1.09%  1.37%  1.59%  11.22%  7.05%
Statutory tax concession  (6.38%)  0.26%
Others  0.35%  0.39%  1.50%  (4.27%)  (2.10%)
                    
Effective tax rate  25.09%  24.82%  28.80%  32.61%  43.46%

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, 20152018 and 2014.2017.

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

The income tax rate applicable to Singapore subsidiaries is 17% (2015(2017: 17%). The Company's overseas subsidiary in Pakistan engaged in power generation business is entitled to an income tax exemption for a period of 30 years according to Pakistani 2015 Fiscal Act; the other subsidiary engaged in maintenance service is subject to income tax at the higher of 8% of its revenue and 2014: 17%).31% of its profit.
F-120

3335Earnings per share

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:
F-91

33
Earnings per share (Continued)

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

*Weighted average number of ordinary shares:

 For the year ended 31 December 
 2018  2017 
      
Consolidated net profit attributable to equity holders of the Company  734,435   1,579,836 
        
Less: cumulative distribution of other equity instruments  342,349   68,600 
        
Consolidated net profit attributable to ordinary Shareholders of the Company  392,086   1,511,236 
        
Weighted average number of the Company’s outstanding ordinary shares (’000)*
  15,283,335   15,200,383 
        
Basic and diluted earnings per share (RMB)  0.03   0.10 
        
*Weighted average number of ordinary shares:        
 2016  2015  2014   2018   2017 
  ’000   ’000   ’000   ’000   ’000 
                    
Issued ordinary shares at 1 January  15,200,383   14,420,383   14,055,383   15,200,383   15,200,383 
Effect of share issue (Note 20)  -   65,000   30,417 
Effect of share issue (Note 21)  82,952   - 
                    
Weighted average number of ordinary shares at 31 December  15,200,383   14,485,383   14,085,800   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, 20152018 and 2014.2017.

3436Notes to consolidated statement of cash flows

Bank balances and cash comprised the following:

 As at 31 December  As at 31 December 
 2016  2015  2014  2018  2017  2016 
                  
Total bank balances and cash  7,881,630   7,537,813   12,608,192   15,832,788   9,364,823   7,881,630 
Less: Restricted cash
  71,129   59,563   369,825 
            
Add: cash and cash equivalents transferred to disposal group  15,104   -   - 
Less: restricted cash  430,210   82,433   71,129 
                        
Cash and cash equivalents as at year end  7,810,501   7,478,250   12,238,367   15,417,682   9,282,390   7,810,501 

F-121

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

 As at 31 December  As at 31 December 
 2016  2015  2014  2018  2017  2016 
                  
RMB  6,691,911   5,847,363   8,346,060   14,389,435   8,213,100   6,691,911 
S$ (RMB equivalent)  869,591   1,130,356   1,064,479   927,395   835,995   869,591 
US$ (RMB equivalent)  319,944   559,761   753,061   482,666   315,535   319,944 
JPY (RMB equivalent)  184   205   4 
HK$ (RMB equivalent)  -   128   2,444,588 
Others  33,292   193   184 
                        
Total  7,881,630   7,537,813   12,608,192   15,832,788   9,364,823   7,881,630 

There is no material non-cash investing and financing transactions for the years ended 31 December 2016, 20152018 and 2014.2017.

The table below details changes in the Company and its subsidiaries’ liabilities from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the Company and its subsidiaries’ consolidated cash flow statement as cash flows from financing activities:

Items 
Loans
(Note 25,31)
  
Bonds
(Note 26,30)
  
Accrued interests
(Note 28)
  
Cumulative distribution of other equity instruments
(Note 24)
  Finance leases payables (Note 27)  Interest rate swaps 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  126,001,427   -   -   -
   -   - 
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 investments  -
   -
   -
   342,350   -   - 
Capitalised borrowing costs  -   -   495,818   -   -   - 
Transfer to 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 

F-92F-122

Items 
Loans
(Note 25,31)
  
Bonds
(Note 26,30)
  
Accrued interests
(Note 28)
  Finance leases payables (Note 27)  Interest rate swaps contracts (liabilities) (Note 14) 
                
As at 1 January 2017  132,220,120   42,788,810   676,462   1,088,846   169,201 
                     
(a) Business combination  47,562,251   -   85,380   521,083   - 
                     
(b) Changes from financing cash flows:                    
Proceeds from new bank loans  140,270,455   -   -   -   - 
Repayment of bank loans  (113,769,036)  -   -   -   - 
Proceeds from new bonds  -   38,788,679   -   -   - 
Repayment of bonds  -   (50,300,000)  -   -   - 
Capital element of finance lease rentals paid  -   -   -   (636,145)  - 
Interest element of finance lease rentals paid  -   -   -   (58,874)  - 
Interest paid  -   (885,000)  (9,195,102)  -   - 
Others  (3,135)  (80,643)  -   -   - 
                     
(c) Exchange adjustments  82,298   -   2,095   235   - 
                     
(d) Changes in fair value  -   -   -   -   (38,558)
                     
(e) Other changes:                    
New finance leases  -   -   -   659,895   - 
Interest expenses  -   747,377   8,902,402   99,225   - 
Capitalised borrowing costs  -   -   476,065   -   - 
Disposal of subsidiaries  (1,166,899)  -   -   -   - 
Others  184,710   -   -   (74,159)  - 
                     
As at 31 December 2017  205,380,764   31,059,223   947,302   1,600,106   130,643 

F-123
3537Related party balances and transactions

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

Names of related parties Nature of relationship
   
Huaneng Group Ultimate parent company
HIPDC Parent company
Huaneng Energy & Communications Holdings Co., Ltd. and its subsidiariesSichuan Hydropower SubsidiariesAn associate of Huaneng Group
Huaneng Property Co., Ltd.the Company and its subsidiariesSubsidiaries of Huaneng Group
Xi’an Thermal and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Group Technology Innovation CenterAalso a subsidiary of Huaneng GroupGroup*
Huaneng Hulunbeier Energy Development  Company Ltd.A subsidiary of Huaneng Group
Gansu Huating Coal andHanfeng Power Co., Ltd.A subsidiary of Huaneng Group
Alltrust Insurance Co., Ltd.A subsidiary of Huaneng Group
North United Power Co., Ltd. and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Group Clean Energy Technology Research Institute Co., Ltd.A subsidiary of Huaneng Group
Huaneng Renewables Corporation LimitedA subsidiary of Huaneng Group
Huaneng Shandong Power Limited and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Carbon Assets Management Company LimitedA subsidiary of Huaneng Group
Huaneng Huajialing Wind Power Co., Ltd.A subsidiary of Huaneng Group
Huaneng Group Hong Kong Limited CompanyA subsidiary of Huaneng Group
Great Wall Securities Co., Ltd.( “Great Wall Securities”)A subsidiary of Huaneng Group
Changping Huaneng Training CenterA 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 An associate of the Company and also a subsidiary of Huaneng Group
Huaneng Group Fuel Company(Tianjing) Coal Gasification Power Generation Co., Ltd. An associate of the Company and also a subsidiary of Huaneng Group
Tiancheng Financial Leasing An associate of the Company and also a subsidiary of Huaneng Group
ShidaowanHuaneng Shidao Bay Nuclear Power Development Co., Ltd. An associate of the Company and also a subsidiary of Huaneng Group
Huaneng Xiapu Nuclear Power Co., Ltd. An associate of the Company and also a subsidiary of Huaneng Group
Huaneng Finance An associate of the Company and also a subsidiary of Huaneng Group
F-93

35Related party balancesHuaneng Group Fuel Company and transactions (Continued)

Names of related partiesits subsidiaries NatureAssociates of relationshipthe Company and also subsidiaries of Huaneng Group
Jilin Zhanyu Wind Power Asset Management Co., Ltd. An associate of the Company
Hainan NuclearChongqing Huaneng Lime Company LimitedAn associate of the Company
Liaocheng Luxi Fuel Co., Ltd. Company
An associate of the Company
Shanxi Transition and Comprehensive Reform District.Electricity Distribution Co., Ltd.An associate of the Company
Gucheng Yingdong Electricity Sales Co., Ltd.An associate of the Company
Chongqing Changyao Electricity Sales Co., Ltd.An associate of the Company
Zhengzhou Airport Xinggang Power Co., Ltd. An associate of the Company
Huaneng (Tianjing) Coal Gasification Power Generation Co., Ltd.Hainan Nuclear An associate of the Company and also a subsidiary of Huaneng Group
Chongqing Huaneng Lime Company LimitedAn associate of a subsidiary
Shanghai Time Shipping A joint venture of the Company
Jiangsu Nantong Power A joint venture of the Company
Suzhou Sugao Renewables Service Co. Ltd.A joint venture of the Company
Huaneng Yingkou Port Limited Liability Company A joint venture of the Company
SubsidiariesLuyi PowerA joint venture of Jiangsu Province Guoxin Asset Management Group Limited Company(“Jiangsu Guoxin”)*the Company
Hong Kong Energy and its subsidiaries** OtherJoint ventures of the Company
Huaneng Group Clean Energy Technology Research Institute Co., Ltd.A subsidiary of Huaneng Group
Huaneng Group Hong Kong Limited CompanyA subsidiary of Huaneng Group
Beijing Changping Huaneng Training CenterA subsidiary of Huaneng Group
North United Power Co., Ltd. and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Hulunbuir Energy Development Company Ltd.and its subsidiariesSubsidiaries 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 subsidiariesSubsidiaries of Huaneng Group
Huaneng Songyuan Power Co., Ltd.A subsidiary of Huaneng Group
Huaneng Nuclear Power Development Company Ltd.A subsidiary of Huaneng Group
Huaneng Lancangjiang Hydropower Co., Inc.and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Coal Business Sector Co., Ltd. and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Gansu Energy Development Company Ltd.and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Baishan Coal Gangue Power Generation Co., Ltd.A subsidiary of Huaneng Group


F-124

Names of related partypartiesNature of relationship
Huaneng Carbon Assets Management Company LimitedA subsidiary of Huaneng Group
Huaneng Property Co., Ltd. and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Energy & Communications Holdings Co., Ltd. and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Tibet Yarlung Zangbo River Hydropower Development & Investment Company Ltd. and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Xining Power Co., Ltd.A subsidiary of Huaneng Group
Huaneng Xinjiang Energy Development Company Ltd. and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Capital Services and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Shaanxi Power Generation Limited and its subsidiariesSubsidiaries of Huaneng Group
Huaneng Group Technology Innovation CenterA subsidiary of Huaneng Group
Alltrust Insurance Co., Ltd.A subsidiary of Huaneng Group
Xi’an Thermal and its subsidiariesSubsidiaries 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
Huaneng Shandong Shidao Bay Nuclear Power Co., Ltd.A subsidiary of Huaneng Group
Huangtai #8 Power PlantAn 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 subsidiaries 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,Hong Kong Energy and its subsidiaries were included in the former directorconsolidated financial statements as at 31 December 2018 for Note 41 (b). Prior to this, the transactions were listed in the disclosure of joint ventures 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.Company.


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

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

In addition to the related party information shown elsewhere in these financial statements, the following is a summary of significant related party transactions entered into in the ordinary course of business between the Company and its subsidiaries and their related parties during the year and significant balances arising from related party transactions as at year end.
F-94F-125

35Related party balances and transactions (Continued)


(a)Related party balances


(i)Cash deposits in related parties

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
Deposits in Huaneng Finance            
- Savings deposit  5,155,000   4,599,922   10,914,633   7,506,706 
Deposits in Great Wall Securities                
- Savings deposit  2   -   -   - 
                
Total  5,155,002   4,599,922   10,914,633   7,506,706 

For the year ended 31 December 2016,2018, the annual interest rates for these savings deposits placed with Huaneng Finance and Great Wall Securities  ranged from 0.35% to 1.35% (2015:(2017: from 0.35% to 1.35%).


(ii)As described in Note 2325 and 29,31, certain loans of the Company and its subsidiaries 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 20162018 and 2015,2017, 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  As at 31 December 
 2016  2015  2018  2017 
            
Due from Huaneng Group  708   1,700   1,010,023   860,941 
Due from HIPDC  2,850   99 
Due from joint ventures  806,112   421,884   122,775   360,442 
Due from associates  -   89,083 
Due from subsidiaries of Huaneng Group  319,224   61,876   125,777   196,621 
Due from other related parties  -   26,745 
Due from Huangtai #8 Power Plant  839,067   903,671 
                
Total  1,126,044   512,205   2,100,492   2,410,857 

F-126


(iv)Accounts payable and other liabilities and other non-current liabilities comprised 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 
F-95
  As at 31 December 
  2018  2017 
       
Due to Huaneng Group  284,244   260,306 
Due to HIPDC  13,628   16,138 
Due to joint ventures  97,431   336,170 
Due to associates  8,962   5,751 
Due to subsidiaries of Huaneng Group  4,528,500   4,239,688 
         
Total  4,932,765   4,858,053 


35Related party balances and transactions (Continued)

(a)Related party balances (Continued)

(v)
As at 31 December 2016,2018, included in long-term loans (including current portion) and short-term loans are loans payable to other government-related enterprises amounting to RMB130RMB 208 billion (2015: RMB126(2017: RMB203 billion).

The balances with government-related enterprises also included substantially all the accounts receivable due from domestic power plants of government-related power grid companies, the bank deposits placed with government-related financial institutions as well as accounts payables and other payables arising from the purchases of coal and property, plant and equipment construction and related labor service provided by other government-related enterprises. Except for bank deposits, these balances are unsecured and the majority of receivable/repayable is within one year.


(vi)As at 31 December 2016,2018, prepayment for construction materials to subsidiaries of Huaneng Group amounted to RMB67RMB19 million (2015: RMB23(2017: RMB21 million).

F-127


(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  2018  2017  2016 
                  
Huaneng Group
                  
Other purchases  506   446   451 
            
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   23,873,672   19,945,752   17,212,984 
Technical services and engineering contracting services  1,055,251   769,176   690,984   1,121,516   1,024,369   1,055,251 
Purchase of equipment  483,058   302,387   418,959   176,506   294,372   481,204 
Purchase of power generation quota  195,528   287,779   309,791   -   -   195,528 
Entrusting other parties for power generation  -   -   38,855 
Purchase of heat  69,527   52,791   1,854 
Other purchases  6,472   7,073   8,087   260   716   6,472 
            
Joint ventures of the Company
                        
Purchase of coal and transportation services  2,150,844   1,816,954   1,816,954   1,798,673   2,054,209   2,150,844 
Entrusting other parties for power generation  -   -   27,985   10,127   28,953   - 
            
An associate of the Company
            
Associates of the Company
            
Other purchases  43,808   44,591   69,911   36,826   27,732   43,808 
Technical services and engineering contracting services  3,812   -   - 

F-96F-128

35Related party balances and transactions (Continued)

(b)Related party transactions (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 
 2018  2017  2016 
         
Huaneng Group
         
Service provided  15,472   907   - 
            
HIPDC
            
Service provided  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   -   1,165 
Sales of goods  637,059   1,114,347   - 
Other sales  189,914   40,780   22,892   11,399   15,247   189,914 
Service provided  31,135   50,627   56,517   45,677   25,229   31,135 
Provision of entrusted power generation  -   58,639   - 
                        
Joint ventures of the Company
                        
Service provided  59,049   133,332   -   392,744   319,844   59,049 
Sales of goods  9,490   23,003   24,551 
Other sales  45,997   407,697   9,490 
                        
Other related party
            
Provision of entrusted power generation  -   33,129   29,232 
Huangtai #8 Power Plant
            
Service provided  2,830   2,802   - 

F-129


(iii)Other related party transactions

  For the year ended 31 December 
  2016  2015  2014 
          
(1)          Rental charge on leasehold
         
HIPDC  157,264   161,941   148,603 
Subsidiaries of Huaneng Group  128,932   130,591   125,807 
             
(2)          Rental income from leasehold
            
A joint venture of the Company  7,750   10,759   3,440 
Subsidiaries of Huaneng Group  5,724   9,115   9,342 

F-97

35Related party balances and transactions (Continued)

(b)Related party transactions (Continued)

(iii)Other related party transactions (Continued)

  For the year ended 31 December 
  2016  2015  2014 
          
(3)      Drawdown of loans
         
Subsidiaries of Huaneng Group  4,035,000   2,660,500   2,340,000 
HIPDC  210   -   - 
             
(4)      Interest expense on loans
            
Huaneng group  30,514   32,573   35,847 
HIPDC  13,136   114,687   - 
Subsidiaries of Huaneng Group  217,098   158,695   127,449 
             
(5)       Interest income on loans
            
A joint venture of the Company  3,488   4,572   - 
             
(6)       Capital injection from a subsidiary of Huaneng Group
            
A subsidiary of Huaneng Group  -   286,312   - 
             
(7)       Capital injection
            
A subsidiary of Huaneng Group  157,500   683,550   - 
An associate of the Company  100,418   206,230   266,877 
A joint venture of the Company  18,200   -   - 
             
(8)       Pre-construction cost paid by
            
A subsidiary of Huaneng Group  765   12,254   - 
             
(9)       Finance lease payments received from
            
A subsidiary of Huaneng Group  2,960,000   100,000   - 
             
(10)    Entrusted management fee
            
Huaneng Group  24,950   24,950   - 
             
(11)    Trusteeship management income
            
Huaneng Group  1,700   1,700   - 
     For the year ended 31 December 
    2018  2017  2016 
            
 (1)
Rental charge on leasehold
         
   HIPDC  107,712   106,885   157,264 
   Subsidiaries of Huaneng Group  123,472   141,542   128,932 
   A joint venture of the Company  589   2,128   - 
                
 (2)
Rental income from leasehold
            
   A joint venture of the Company  7,448   7,448   7,750 
   Subsidiaries of Huaneng Group  3,609   2,509   5,724 
                
 (3)
Drawdown of loans
            
   Subsidiaries of Huaneng Group  17,940,287   15,374,480   4,035,000 
   HIPDC  -   -   210 
   Huaneng Group  -   665,225   - 
                
 (4)
Interest expense on loans
            
   Huaneng Group  32,037   33,481   30,514 
   HIPDC  -   10   13,136 
   Subsidiaries of Huaneng Group  524,716   589,012   217,098 
                
 (5)
Interest income on loans
            
   A joint venture of the Company  3,540   3,329   3,488 
   An associate of the Company  6,639   917   - 
   Subsidiaries of Huaneng Group  -   4,344   - 
                
 (6)
Capital injection from a subsidiary of Huaneng Group
            
   A subsidiary of Huaneng Group  379,906   274,752   - 
                
 (7)
Capital injection to
            
   Subsidiaries of Huaneng Group  320,680   -   157,500 
   Associates of the Company  142,579   52,200   100,418 
   Joint ventures of the Company  -   249,716   18,200 
                
 (8)
Pre-construction cost paid by
            
   A subsidiary of Huaneng Group  90   23,529   765 
   A joint venture of the Company  -   179   - 
                
 (9)
Finance lease payments received from
            
   A subsidiary of Huaneng Group  57,676   -   2,960,000 
                
 (10)
Interest expense of finance lease
            
   Subsidiaries of Huaneng Group  30,720   22,261   17,586 
                
 (11)
Entrusted management fee
            
   Huaneng Group  15,000   13,453   24,950 
                
 (12)
Trusteeship management income
            
   Huaneng Group  5,110   1,518   1,700 
                
 (13)
Net proceeds received from investee with significant influence
            
   Huangtai #8 Power Plant  60,246   72,920   - 


(c)Guarantees

  As at 31 December 
  2016  2015 
       
(i)          Long-term loans guaranteed by      
- Huaneng Group  565,992   713,994 
- HIPDC  2,142,000   2,228,000 
(ii)          Long-term bonds guaranteed by        
- HIPDC  4,000,000   4,000,000 
- Government-related banks  3,300,000   3,300,000 
F-98F-130


35Related party balances and transactions (Continued)

(c)Guarantees (Continued)
     For the year ended 31 December 
    2018  2017  2016 
            
 (14)
Finance lease to investee with significant influence
         
   Huangtai #8 Power Plant  -   86,946   - 
                
 (15)
Interest income from finance lease
            
   Huangtai #8 Power Plant  22,497   11,626   - 
                
 (16)
Receive collateral under loan agreement
            
   An associate of the Company  96,902   -   - 
                
 (17)
Acquisition consideration
            
   In 2018, Shandong Power acquired subsidiaries from Taishan Power, please refer to Note 41(a) for details of the acquisition consideration.            

Transactions with government-related enterprises

For the years ended 31 December 2016, 20152018 and 2014,2017, the Company and its domestic subsidiaries sold substantially all their products to local government-related power grid companies. Please refer to Note 5 for details of sales information to major power grid companies.

For the years ended 31 December 2016, 20152018 and 2014,2017, other collectively-significant transactions with government-related enterprises also include a large portion of fuel purchases, property, plant and equipment construction and related labor employed.


(c)Guarantees

    As at 31 December 
   2018  2017 
        
(i)Long-term loans guaranteed by      
- Huaneng Group  3,028,109   1,675,147 
- HIPDC  2,057,200   2,099,600 
          
(ii)Long-term bonds guaranteed by        
- HIPDC  -   4,000,000 

F-131


(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  2018  2017  2016 
                  
Salaries  8,225   9,064   8,546   6,754   7,676   8,225 
Pension  1,521   1,470   1,350   1,292   1,511   1,521 
                        
Total  9,746   10,534   9,896   8,046   9,187   9,746 


(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 :


(i)Capital commitments

  As at 31 December 
  2016  2015 
       
Subsidiaries of Huaneng Group  439,571   405,208 
  As at 31 December 
  2018  2017 
       
Subsidiaries of Huaneng Group  315,609   290,041 


(ii)Fuel purchase and transportation commitments

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
Subsidiaries of Huaneng Group  963,306   1,343,875   1,382,058   1,111,649 
A joint venture of the Company   291,032   200,440   358,441   279,408 
                
Total  1,254,338   1,544,315   1,740,499   1,391,057 

F-99

35Related party balances and transactions (Continued)

(e)Related party commitments (Continued)

(iii)Operating lease commitments

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
Subsidiaries of Huaneng Group  286,340   145,950   126,492   171,804 
HIPDC  65,554   73,202   55,973   76,202 
                
Total  351,894   219,152   182,465   248,006 

F-132

3638Labor cost

Other than the salaries and staff welfare, the labor cost of the Company and its subsidiaries mainly comprises the following:

All PRC employees of the Company and its subsidiaries are entitled to a monthly pension upon their retirements. The PRC government is responsible for the pension liability to these employees on retirement. The Company and its subsidiaries are required to make contributions to the publicly administered retirement plan for their PRC employees at a specified rate, currently set at 14% to 22% (both 2015 and 2014:(2017: 14% to 22%) of the basic salary of the PRC employees. The retirement plan contributions paid by the Company and its subsidiaries for the year ended 31 December 20162018 were approximately RMB873RMB1,179 million (2015 and 2014: RMB789 million and RMB621(2017: RMB1,156 million), including approximately RMB832RMB1,135 million (2015 and 2014: RMB748 million and RMB593(2017: RMB1,110 million) charged to profit or loss.

In addition, the Company and its subsidiaries have also implemented a supplementary defined contribution retirement scheme for PRC employees. Under this scheme, the employees are required to make a specified contribution based on the number of years of service with the Company and its subsidiaries, and the Company and its subsidiaries are required to make a contribution equal to two to four times the employees’ contributions. The employees will receive the total contributions upon their retirement. For the year ended 31 December 2016,2018, the contributions to supplementary defined contribution retirement scheme paid by the Company and its subsidiaries amounted to approximately RMB244RMB483 million (2015 and 2014: RMB223 million and RMB171(2017: RMB312 million), including approximately RMB233RMB465 million (2015 and 2014: RMB212 million and RMB164(2017: RMB299 million) charged to profit or loss.

SinoSing Power and its subsidiaries in Singapore appropriate a specified rate, currently set at 6.5% to 16% (both 2015 and 2014:(2017: 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 20162018 amounted to approximately RMB18.47RMB17.53 million (2015 and 2014: RMB15.76 million and RMB14.70(2017: RMB19.92 million), all of which were charged to profit or loss.

The Company and its subsidiaries have no further obligation for post-retirement benefits beyond the annual contributions made above.
F-100

36Labor cost (Continued)

In addition, the Company and its subsidiaries also make contributions of housing funds and social insurance to the social security institutions at specified rates of the basic salary and no more than the upper limit. The housing funds and social insurance contributions paid by the Company and its subsidiaries amounted to approximately RMB604RMB802 million (2015 and 2014: RMB579 million and 462(2017: RMB784 million) and RMB699RMB930 million (2015 and 2014: RMB658 million and RMB519(2017: RMB901 million) for the year ended 31 December 2016,2018 including approximately RMB572RMB764 million (2015 and 2014: RMB546 million and RMB439(2017: RMB748 million) and RMB664RMB886 million (2015 and 2014: RMB619 million and RMB483(2017: RMB857 million) were charged to profit or loss, respectively.

F-133

3739Directors’, 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 20162018 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. Shu Yinbiao1
  -   -   -   -   - 
Mr. Cao Peixi2
  -   -   -   -   - 
Mr. Liu Guoyue3
  -   -   -   -   - 
Mr. Fan Xiaxia4
  -   -   -   -   - 
Mr. Huang Jian  -   -   -   -   - 
Mr. Wang Yongxiang  -   -   -   -   - 
Mr. Mi Dabin  -   -   -   -   - 
Mr. Guo Hongbo  -   -   -   -   - 
Mr. Cheng Heng  -   -   -   -   - 
Mr. Lin Chong  -   -   -   -   - 
Mr. Yue Heng  74   -   -   -   74 
Mr. Xu Mengzhou  74   -   -   -   74 
Mr. Liu Jizhen  74   -   -   -   74 
Mr. Xu Haifeng  74   -   -   -   74 
Mr. Zhang Xianzhi  74   -   -   -   74 
Sub-total  370   -   -   -   370 
                     
Name of supervisor                    
Mr. Ye Xiangdong  -   -   -   -   - 
Mr. Mu Xuan  -   -   -   -   - 
Ms. Zhang Mengjiao  -   -   -   -   - 
Mr. Gu Jianguo  -   -   -   -   - 
Ms. Zhang Xiaojun  -   154   476   130   760 
Mr. Zhu Daqing5
  -   66   250   63   379 
Mr. Zhang Xiancheng6
  -   36   87   22   145 
Sub-total  -   256   813   215   1,284 
Total  370   256   813   215   1,654 

F-101F-134

37Directors’, supervisors’ and senior management’s emoluments (Continued)

(a)Pre-tax benefits and social insurance of directors and supervisors (Continued)

The remuneration of every director and supervisor of the Company for the year ended 31 December 20152017 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  -   143   663   123   929   -   -   -   -   - 
Mr. Fan Xiaxia  -   -   -   -   - 
Mr. Li Shiqi  -   -   -   -   -   -   -   -   -   - 
Mr. Huang Jian  -   -   -   -   -   -   -   -   -   - 
Mr. Fan Xiaxia  -   356   494   131   981 
Mr. Wang Yongxiang  -   -   -   -   - 
Mr. Mi Dabin  65   -   -   -   65   24   -   -   -   24 
Mr. Guo Hongbo  12   -   -   -   12   -   -   -   -   - 
Mr. Zhu Yousheng  24   -   -   -   24   24   -   -   -   24 
Mr. Xu Zujian  24   -   -   -   24 
Ms. Li Song  65   -   -   -   65   24   -   -   -   24 
Mr. Cheng Heng  -   -   -   -   - 
Mr. Lin Chong  -   -   -   -   - 
Mr. Li Zhensheng  74   -   -   -   74   37   -   -   -   37 
Mr. Qi Yudong  6   -   -   -   6 
Mr. Zhang Shouwen  74   -   -   -   74 
Mr. Yue Heng  100   -   -   -   100   74   -   -   -   74 
Ms. Zhang Lizi  30   -   -   -   30 
Mr. Geng Jianxin  37   -   -   -   37   37   -   -   -   37 
Mr. Xia Qing  37   -   -   -   37   37   -   -   -   37 
Mr. Xu Mengzhou  74   -   -   -   74 
Mr. Liu Jizhen  37   -   -   -   37 
Mr. Xu Haifeng  37   -   -   -   37 
Mr. Zhang Xianzhi  37   -   -   -   37 
                                        
Sub-total  548   499   1,157   254   2,458   442   -   -   -   442 
                    
                                        
Name of supervisor                                        
Mr. Ye Xiangdong  -   -   -   -   -   -   -   -   -   - 
Mr. Mu Xuan  65   -   -   -   65   24   -   -   -   24 
Ms. Zhang Mengjiao  -   -   -   -   -   -   -   -   -   - 
Mr. Gu Jianguo  49   -   -   -   49   24   -   -   -   24 
Mr. Wang Zhaobin  -   298   385   103   786 
Ms. Zhang Ling  -   133   263   53   449 
Ms. Zhang Xiaojun  -   137   466   124   727 
Mr. Zhu Daqing  -   135   464   123   722 
                                        
Sub-total  114   431   648   156   1,349   48   272   930   247   1,497 
                                        
                    
Total  662   930   1,805   410   3,807   490   272   930   247   1,939 

F-102F-135

37Directors’, supervisors’ and senior management’s emoluments (Continued)

(a)Pre-tax benefits and social insurance of directors and supervisors (Continued)

The remuneration of every director and supervisor of the Company for the year ended 31 December 20142016 is set out below:

     Basic  Performance       
  Fees  salaries  salaries  Pension  Total 
                
Name of director               
Mr. Cao Peixi  -   -   -   -   - 
Mr. Guo Junming  -   -   -   -   - 
Mr. Liu Guoyue  -   278   258   117   653 
Mr. Li Shiqi  -   -   -   -   - 
Mr. Huang Jian  -   -   -   -   - 
Mr. Fan Xiaxia  -   358   494   122   974 
Mr. Mi Dabin  -   -   -   -   - 
Mr. Guo Hongbo  48   -   -   -   48 
Mr. Xu Zujian  48   -   -   -   48 
Ms. Li Song  -   -   -   -   - 
Mr. Li Zhensheng  74   -   -   -   74 
Mr. Qi Yudong  74   -   -   -   74 
Mr. Zhang Shouwen  74   -   -   -   74 
Mr. Yue Heng  -   -   -   -   - 
Ms. Zhang Lizi  -   -   -   -   - 
Mr. Huang Long  -   -   -   -   - 
Mr. Shan Qunying  48   -   -   -   48 
Mr. Xie Rongxing  48   -   -   -   48 
Mr. Shao Shiwei  74   -   -   -   74 
Mr. Wu Liansheng  74   -   -   -   74 
                     
Sub-total  562   636   752   239   2,189 
                     
Name of supervisor                    
Mr. Ye Xiangdong  -   -   -   -   - 
Mr. Mu  Xuan  -   -   -   -   - 
Mr. Hao Tingwei  -   -   -   -   - 
Ms. Zhang Mengjiao  -   -   -   -   - 
Mr. Gu Jianguo  48   -   -   -   48 
Mr. Wang Zhaobin  -   305   420   111   836 
Ms. Zhang Ling  -   129   505   102   736 
                     
Sub-total  48   434   925   213   1,620 
                     
Total  610   1,070   1,677   452   3,809 
F-103
  Fees  
Basic
salaries
  Performance 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 Shouwen  37   -   -   -   37 
Mr. Yue Heng  74   -   -   -   74 
Mr. Geng Jianxin  74   -   -   -   74 
Mr. Xia Qing  74   -   -   -   74 
Mr. Xu Mengzhou  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 Zhaobin  -   51   -   -   51 
Ms. Zhang Ling  -   69   -   -   69 
Ms. Zhang Xiaojun  -   92   314   89   495 
Mr. Zhu Daqing  -   90   313   88   491 
                     
Sub-total  96   302   627   177   1,202 
                     
Total  610   629   1,023   299   2,561 

37Directors’, supervisors’ and senior management’s emoluments (Continued)
1Appointed on 30 January 2019.

(a)Pre-tax benefits and social insurance of directors and supervisors (Continued)
21Resigned on 23 June 2016.30 January 2019.
2     3Resigned on 15 May 2018.
4Resigned on 28 February 2018.
5Resigned on 30 October 2018.
6Appointed on 23 June 2016.30 October 2018.
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:(2017: 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:(2017: nil).

No director or supervisor had waived or agreed to waive any emoluments during the years 2016, 20152018 and 2014.2017.
F-104F-136

37Directors’, supervisors’ and senior management’s emoluments (Continued)


(b)Five highest paid individuals

The five individuals whose emoluments were the highest in the Company and its subsidiaries for the year include oneno director (2015 and 2014: two and one)(2017: no director) whose emoluments are reflected in the analysis presented above. The emoluments payable to the all five (2017: remaining four (2015 and 2014: three and four)five) individuals during the year (within the range of nil to RMB0.79RMB0.86 million) are as follows:

 As at 31 December  As at 31 December 
 2016  2015  2014  2018  2017  2016 
                  
Basic salaries  1,213   910   1,220   1,500   1,524   1,213 
Performance salaries  1,440   1,260   1,680   2,100   1,800   1,440 
Pension  502   365   454   679   648   502 
                        
  3,155   2,535   3,354   4,279   3,972   3,155 

3840Commitments


(a)Capital commitments

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 
  2018  2017 
       
Contracted but not provided  16,790,739   16,985,439 


(b)Operating lease commitments

The Company and its subsidiaries have various operating lease arrangements for land and buildings. Some of the leases contain renewal options and most of the leases contain escalation clauses. Lease terms do not contain restrictions on the Company and its subsidiaries’ activities concerning dividends, additional debts or further leasing.

Total future minimum lease payments under non-cancelable operating leases are as follows:

 As at 31 December  As at 31 December 
 2016  2015  2018  2017 
            
Land and buildings            
- not later than 1 year  181,441   193,772   194,333   196,870 
- later than 1 year and not later than 2 years  144,088   65,652   99,149   118,272 
- later than 2 years and not later than 5 years  133,984   85,793   191,853   143,628 
- later than 5 years  970,896   949,978   1,161,916   1,028,014 
                
Total  1,430,409   1,295,195   1,647,251   1,486,784 

F-105F-137
38Commitments (Continued)

(b)Operating lease commitments (Continued)

In addition, in accordance with a 30-year operating lease agreement signed by Huaneng Dezhou Power Plant (“Dezhou Power Plant”) and Shandong Land Bureau for the land occupied by Dezhou Power Plant Phases I and II in June 1994, annual rental amounted to approximately RMB30 million effective from June 1994 and is subject to revision at the end of the fifth year from the contract date. Thereafter, the annual rental is subject to revision once every three years. The increment for each rental revision is restricted to no more than 30% of the previous annual rental amount. For the years ended 31 December 2016, 20152018 and 2014,2017, the annual rentals was approximately RMB34 million.


(c)Fuel purchase commitments

The Company and its subsidiaries have entered into various long-term fuel supply agreements with various suppliers in securing fuel supply for various periods. All the agreements require minimum, maximum or forecasted volume purchases and are subject to certain termination provisions. Related purchase commitments are as follows:

    As at 31 December 2016
PurchaseEstimated2018 
  Periods Purchase quantities Estimated unit costs (RMB) 
        
A government-related enterprise  2017-20392019-2039 
2.8 million m3/day*
  2.31/
2.31 / m
3
A government-related enterprise  2017-20232019-2023 
541991 million m3/year*
  2.16/
2.50 / m
3
   2017-20232019-2023 
541 million m3/year*
2.32 / m3
2019-2023
450 million m3/year*
  2.16/
2.50 / m3
A government-related enterprise2019-2026
200 million m3/year*
2.45 / m3
Other suppliers  2017-20222019 248BBtu*238 BBtu**/day approximately 63,000/76,000/BBtu
2020-2021 241.5-242 BBtu**/dayapproximately 76,000/BBtu
2022242.5 BBtu**/dayapproximately 76,000/BBtu 
   2023 247.5-256.6BBtu*81.5-247.5 BBtu**/day approximately 63,000/82,000/BBtu 
   2024-2028 49.9-59.0BBtu*42.4-81.5 BBtu**/day approximately 70,000/89,000/BBtu 
202942.4 BBtu**/dayapproximately 81,000/Bbtu

F-138

    As at 31 December 2015
PurchaseEstimated2017 
  Periods Purchase quantities Estimated unit costs (RMB) 
        
A government-related enterprise  2016-20392018-2039 
2.8 million m3/day*
  2.13/
2.21/ m
3
A government-related enterprise  2016-20232018-2023 
541 million m3/year*
  1.91/
2.06/ m
3
   2016-20232018-2023 
450 million m3/year*
  1.91/
2.06/ m3
2018-2023
541 million m3/year*
2.10/ m3
2018-2023
450 million m3/year*
2.27/ m3
A government-related enterprise2018-2026
200 million m3/year*
2.38/ m3
Other suppliers  20162018-2019 244.5BBtu*243 BBtu**/day approximately 40,000/67,000/BBtu 
   2017-20222020-2021 248BBtu*242 BBtu**/day approximately 40,000/67,000/BBtu
2022248 BBtu**/dayapproximately 67,000/BBtu 
   2023 247.5BBtu*247.5~256.6BBtu**/day 
approximately
40,000/ 67,000/BBtu
 
   2024-2028 49.9BBtu*49.9-81.5BBtu**/day approximately 55,000/BBtu
69,000/Bbtu 

F-106
38Commitments (Continued)

(c)Fuel purchase commitments  (Continued)

*The quantities represent maximum volume, others represent minimum or forecasted volume if not specified.

**BBtu: Billion British Thermal Unit.

3941Business combinations

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 Windfrom Taishan 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 31 July 2018, Shandong Power Generation was established on 3 March 2015 in Xuzhou, Jiangsu Province, and is mainly engaged in wind power generation, wind power research and related technical consulting services. On the acquisition date, the entity is under construction. From the acquisition date to 31 December 2016, Tongshan Xiehe Wind Power Generation had not commenced operation.

(ii)In July 2016, the Company acquired 100% equity interests of Yangguang Cogeneration from Luoyang Shuiye Asset Investment Management Co., Ltd. for cash consideration of RMB7.89 million. The acquisition date was the date when the Company obtained control over Yangguang Cogeneration. The acquisition cost was less than the fair value of the identifiable net assets acquired, while the difference was credit to profit or loss.

Yangguang Cogeneration was established on 6 April 2004 in Luoyang, Henan Province, and is mainly engaged in production and supply of electric and heating power.

F-107
39Business combinations (Continued)

(b)Acquisition consideration and goodwill

  Tongshan Xiehe  Yangguang 
  Wind Power  Cogeneration 
       
Fair value of total identifiable net assets  3,000   137,811 
         
Difference between the acquisition cost and the fair value of the identifiable net assets acquired (Note 6)  -   (129,921)
         
Cash consideration  3,000   7,890 
         
         
Less: Cash and cash equivalents of acquirees  667   167,644 
         
Cash consideration paid/(received) for acquisition of subsidiaries, net of cash acquired  2,333   (159,754)

(c)The assets and liabilities arising from the acquisitions of above entities are as follows:

  Tongshan Xiehe  Tongshan Xiehe       
  Wind Power  Wind Power  Yangguang  Yangguang 
  Generation  Generation  Cogeneration  Cogeneration 
  Fair Value  Carrying Amount  Fair Value  Carrying Amount 
             
Bank balances and cash  667   667   167,644   167,644 
Account receivables  -   -   100,882   100,882 
Inventories  -   -   14,669   14,669 
Other current assets  -   -   5,353   5,353 
Property, plant and equipment  2,333   2,333   317,172   344,533 
Land use rights  -   -   61,027   19,336 
Other non-current assets  -   -   61   61 
                 
Account payable and other liabilities  -   -   53,994   53,994 
Tax payables  -   -   35,092   35,092 
Current portion of other non-current liabilities  -   -   256,923   256,923 
Deferred income tax liabilities  -   -   58,929   55,346 
Other non-current liabilities  -   -   124,059   124,059 
                 
Total identifiable net assets  3,000   3,000   137,811   127,064 


F-108
39Business combinations (Continued)

2015 Business combinations

On 13 October 2014, the Company entered into an equity transfer agreements with Huaneng Group and HIPDC respectivelyTaishan Power to acquire:

·91.80% equity interests of Hainan Power from Huaneng Group
80% equity interests of Laizhou Wind Power
·75% equity interests of Wuhan Power from Huaneng Group
80% equity interests of Shandong Laiwu Thermal Power
·53.45% equity interests of Suzhou
75% equity interests of Shandong Liaocheng Thermal Power from Huaneng Group
·97% equity interests of Dalongtan Hydropower from Huaneng Group
·100% equity interests of Hualiangting Hydropower from Huaneng Group
·60% equity interests of Chaohu Power from HIPDC
·100% equity interests of Ruijin Power, Anyuan Power, Jingmen Thermal Power and Yingcheng Thermal Power from HIPDC

These entities are all mainly engaged in power generation and sales business. In early January 2015 theThe acquisition was completed and since then the Companyon 1 August 2018 (the acquisition date), when Shandong Power obtained the control over above mentioned entities.entities through the corresponding voting rights obtained and consolidated them in its financial statement. The acquisition is expected to increase its generation capacity in relevant areas. The acquired business contributed consolidated revenue of RMB15,477RMB743 million and consolidated net profitloss of RMB2,581RMB92 million to the Company and its subsidiaries for the period from the date of acquisition to 31 December 2015.2018.

The total consideration is RMB9.647RMB1.173 billion after adjustment of the profits generated from the date of valuation to the acquisition datecertain adjustments made in accordance with the equity transfer agreements, which has been settled in cash in 2015.by 31 December 2018.

F-139
  Acquisition Date 
    
Total consideration1,172,508
Non-controlling interests276,713
Less: Fair value of total identifiable net assets  10,412,1471,218,003 
     
Non-controlling interests(1,934,865)
Goodwill  1,169,966231,218 
     
CashTotal consideration  9,647,248
1,172,508 
Less: Bank balances and cash of acquirees  972,686
Less: Restricted cash(189,637)
Cash and cash equivalents of acquirees783,049122,699 
    
Add: Cash paid for payables in relation to business combination of prior period23,683 
Cash consideration paid for acquisition of subsidiaries, net of cash acquired  8,887,8821,049,809 

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 includedabove. None of the goodwill arising from the acquisition of Hainan Power and Wuhan Power amountingrecognised is expected to RMB506 million and RMB518 million respectively.be deductible for tax purposes.

F-109
39Business combinations (Continued)
The Company incurred acquisition related cost amounted RMB0.96 million for financial advisory, legal and audit fees.

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  Laizhou wind power  Shandong Laiwu Thermal Power  Shandong Liaocheng Thermal Power 
    Acquiree’s     Acquiree’s     Acquiree’s     Acquiree’s     Acquiree’s  Fair value  Fair value  Fair value 
    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   568,177   1,888,021   736,577 
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   30,232   67,245   301,114 
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   2,007   5,124   836 
Inventories  167,476   167,476   234,750   234,750   25,508   25,508   92   92   359   359   131   2,354   22,225 
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)
Other receivables and assets  4,461   12,277   8,622 
Accounts receivable  47,274   137,573   55,246 
Bank balances and cash  10,486   57,558   54,655 
Long-term loans  (115,800)  (379,254)  (200,000)
Deferred income tax liabilities  (332,344)  -   (476,477)  -   (30,892)  -   -   -   -   -   -   (31,588)  (39,414)
Other non-current liabilities  (2,700)  (2,700)  (40,037)  (40,037)  (7,176)  (7,176)  (760)  (760)  -   -   -   (26,235)  (118,628)
                                        
Accounts payable and other liabilities  (62,059)  (162,237)  (122,774)
Taxes payables  (905)  (1,686)  (2,215)
Short-term loans  (150,000)  (550,000)  (34,000)
Current portion of long-term loans  (334,791)  (462,606)  - 
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   (787)  556,546   662,244 
                                        

  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 
The fair value of the identifiable assets and liabilities acquired in the acquisition were assessed based on independent valuation prepared by external valuers.
F-140

F-110
39
Business combinations (Continued)(b)A subsidiary transferred from a joint venture

2014 Business combinations

AcquisitionHong Kong Energy, which has two wholly-owned subsidiaries engaged in electricity production, sales and other relevant activities in Pakistan, was previously a joint venture established by a subsidiary of Zhumadian Wind Powerthe Company and the other shareholder with 50%:50% equity interests. Previously, according to the terms in articles of association, Hong Kong Energy was jointly controlled by the two shareholders and therefore it was accounted for using equity method.

In November 2014,December 2018, the Company acquired 90% equity interestsother shareholder signed a voting in concert agreement whereby it agreed to vote the same in respect of Zhumadian Wind Power from Henan Lantian Group Co., Ltd. significant financial and operating decisions made by Hong Kong Energy and its subsidiaries. As a result, Hong Kong Energy was included in the consolidated financial statements since then (acquisition date: 31 December 2018).

Acquisition Date
Non-controlling interests1,314,040
Fair value of pre-existing interest in Hong Kong Energy1,314,040
Less: Fair value of total identifiable net assets2,628,080
Goodwill-

The aggregate cash consideration of the acquisition amounted to RMB23.68 million. The fair values ofidentifiable assets and liabilities arising from the acquisition of Zhumadian Wind Power and non-controlling interest’s proportionate share of acquiree’s net assets onHong Kong Energy as at the acquisition date are as follows:

Zhumadian Wind Power
 Fair Value 
   
Property, plant and equipment275,889
Deferred income tax assets2,919
Other non-current assets10,205,870
Inventories372,248
Other receivables and assets1,030,858
Accounts receivable1,523,409 
Bank balances and cash  9374,964 
Other receivablesLong-term loans  15,583(8,200,739)
InventoriesOther non-current liabilities  20(210,142)
Property, plant and equipment10,750
PayablesAccounts payable and other liabilities  (48675,009)
Taxes payable(1,330)
Short-term loans(1,560,108)
Current portion of long-term loans(510,749)
     
Total identifiable net assets  26,314
Non-controlling interests(2,631)
Goodwill-
Consideration23,6832,628,080 

As at 31 December 2014, Zhumadian Wind Power was still under construction.



F-111F-141
4042Non-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 2018
                                          
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         9,660,834   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  1,472,192   1,041,957   864,069   508,493   649,446   826,089   380,641   563,023         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  (2,206,586)  (152,911)  (284,064)  (104,952)  (1,773,332)  (1,150,021)  (1,055,640)  (224,373)        (3,831,883)  (334,910)  (611,767)  (59,651)  (1,559,581)  (662,863)  (409,762)  (178,511)  (30,380,001)      
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)        (4,255,529)  (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  4,000,870   5,044,406   2,945,649   2,887,243   2,467,783   2,805,812   1,658,199   2,001,121         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  1,614,264   2,928,015   1,157,242   1,154,897   987,135   1,260,591   829,099   899,609   5,352,890   16,183,742   1,301,384   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  5,006,349   4,476,729   2,436,586   3,217,209   3,734,108   2,716,817   1,915,915   1,773,869           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  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  (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  1,400,042   973,352   550,346   1,045,828   1,293,565   568,379   890,615   295,547           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  (312,604)  (540,151)  (189,599)  (273,117)  (37,274)  (62,622)  (258,892)  (197,600)          (503)  (316,754)  (201,012)  (98,420)  (52,701)  (106,596)  (45,045)  (258,605)  (3,628,406)        
Cash flow from financing activities  (1,247,836)  (344,718)  (319,643)  (786,471)  (1,255,955)  (521,249)  (462,075)  (58,293)          (843,094)  (904,822)  (5,288)  (306,054)  (570,838)  (305,872)  (472,543)  63,762   (162,007)        
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  111,223   101,482   (13,692)  68,875   88,261   (55)  10,195   15,719   679,471         
Dividends paid to NCI  433,090   687,679   120,000   366,983   308,923   -   273,900   128,857           165,965   460,262   -   140,000   95,979   46,790   51,870   -   42,506         

F-112F-142
  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%  20%      
31 December 2017
                                          
Non-current assets  10,553,775   6,841,918   4,055,507   4,664,868   5,049,079   4,875,004   3,712,623   2,541,803   47,665,952       
Current assets  1,738,000   1,257,485   887,225   633,012   494,312   987,812   494,073   497,441   6,891,086       
Non-current liabilities  (3,053,535)  (394,590)  (242,944)  (81,048)  (1,541,444)  (1,042,093)  (731,640)  (205,205)  (19,681,891)      
Current liabilities  (5,821,543)  (2,501,516)  (2,064,897)  (2,462,363)  (1,854,441)  (2,590,470)  (1,919,701)  (869,071)  (18,695,005)      
Net assets  3,416,697   5,203,297   2,634,891   2,754,469   2,147,506   2,230,253   1,555,355   1,964,968   16,180,142       
Carrying amount of NCI  1,380,594   3,050,283   1,032,938   1,101,787   859,024   1,019,016   777,678   883,340   4,697,283   5,171,095   19,973,038 
                                             
Revenue  4,587,612   4,262,547   2,303,079   3,421,115   3,423,688   3,149,190   2,117,052   2,010,872   22,566,737         
Net (loss)/profit  (169,261)  541,602   (60,758)  324,335   269,949   47,224   164,557   121,853   (800,622)        
Total comprehensive (loss)/ income  (169,261)  541,602   (60,758)  324,335   269,949   47,224   164,557   121,853   (943,860)        
(Loss)/ profit allocated to NCI  (67,704)  319,545   (24,303)  129,734   107,980   21,251   82,278   54,834   (287,923)  (331,321)  4,371 
Other comprehensive (loss)/income allocated to NCI  -   -   -   -   -   -   -   -   (28,648)  152   (28,496)
                                             
Cash flow from operating activities  970,585   1,071,888   195,282   681,568   731,714   426,437   311,668   334,842   3,848,712         
Cash flow from investment activities  (252,441)  (1,190,093)  (383,004)  (231,142)  (47,518)  (242,288)  (93,434)  (64,179)  (3,967,060)        
Cash flow from financing activities  (613,010)  70,299   156,483   (405,196)  (680,226)  (191,231)  (384,317)  (288,299)  (282,625)        
Net increase/ (decrease) in cash and cash equivalents  105,134   (49,605)  (31,239)  45,230   3,970   (7,082)  (166,083)  (17,586)  (402,950)        
Dividends paid to NCI  150,000   532,966   -   160,000   179,023   65,675   133,700   71,103   220,321         

F-143
40Non-controlling interests (Continued)

                          Other    
  Qinbei     Luohuang  Weihai  Jinling  Yueyang  Shidongkou     individually    
  Power  Beijing  Power  Power  Power  Power  Power  Yangliuqing  immaterial    
  Company  Cogeneration  Company  Company  Company  Company  Company  Cogeneration  subsidiaries  Total 
NCI percentage  40%  59%  40%  40%  40%  45%  50%  45%      
                                       
31 December 2015
                                      
                                       
Non-current assets  11,739,361   5,193,038   4,154,105   4,934,579   5,746,576   5,297,441   3,924,128   2,699,074       
Current assets  1,511,345   1,203,956   943,954   464,234   733,084   752,111   461,184   455,209       
Non-current liabilities  (3,313,836)  (137,657)  (300,428)  (117,412)  (2,310,221)  (1,314,199)  (1,379,640)  (243,675)      
Current liabilities  (5,310,585)  (1,090,231)  (1,674,490)  (1,984,600)  (1,584,917)  (2,173,454)  (1,096,885)  (800,584)      
Net assets  4,626,285   5,169,106   3,123,141   3,296,801   2,584,522   2,561,899   1,908,787   2,110,024       
Carrying amount of NCI  1,864,430   3,036,024   1,228,238   1,318,720   1,033,831   1,150,830   954,394   948,615   6,016,659   17,551,741 
                                         
Revenue  6,078,743   5,675,930   3,313,706   3,941,344   3,785,240   3,045,746   2,115,996   1,999,749         
Net profit  1,196,791   1,308,936   486,578   1,019,397   857,881   452,894   459,330   319,976         
Total comprehensive income  1,196,791   1,308,936   486,578   1,019,397   857,881   452,894   459,330   319,976         
Profit allocated to NCI  478,716   772,272   194,631   407,759   343,153   203,802   229,665   143,989   833,187   3,607,174 
Other comprehensive income allocated to NCI  -   -   -   -   -   -   -   -   (96)  (96)
                                         
Cash flow from operating activities  2,541,580   1,488,085   932,367   1,513,744   1,338,323   1,016,136   834,278   571,512         
Cash flow from investment activities  (33,499)  (574,149)  (151,647)  (235,657)  (103,779)  538,740   (26,301)  (14,100)        
Cash flow from financing activities  (2,328,362)  (880,545)  (758,054)  (1,278,814)  (1,287,469)  (1,571,651)  (853,459)  (580,094)        
Net increase /(decrease) in cash and                                        
    cash equivalents  179,719   36,511   22,666   (727)  (52,925)  (16,775)  (45,482)  (22,599)        
Dividends paid to NCI  697,436   362,958   220,000   83,320   373,143   135,000   270,000   183,055         
                                         
31 December 2014
                                        
                                         
Non-current assets  12,468,950   4,861,762   4,491,788   5,016,286   6,053,110   5,481,010   4,184,272   2,753,641         
Current assets  1,671,490   1,348,041   967,057   643,829   681,848   1,675,476   479,770   635,546         
Non-current liabilities  (4,033,498)  (505,544)  (337,330)  (291,886)  (3,336,497)  (1,512,909)  (1,708,800)  (290,710)        
Current liabilities  (4,832,978)  (1,161,981)  (2,184,952)  (2,198,983)  (1,054,216)  (3,234,572)  (1,154,784)  (901,641)        
Net assets  5,273,964   4,542,278   2,936,563   3,169,246   2,344,245   2,409,005   1,800,458   2,196,836         
Carrying amount of NCI  2,088,919   2,570,827   1,153,607   1,267,699   937,720   1,082,027   900,229   987,681   3,664,506   14,653,215 
                                         
Revenue  7,202,737   5,522,496   3,790,158   4,462,576   4,603,881   3,414,762   2,212,549   2,469,628         
Net profit  1,148,208   1,267,225   307,786   990,936   575,309   381,660   415,819   455,002         
Total comprehensive income  1,148,208   1,267,225   307,786   990,936   575,309   381,660   415,819   455,002         
Profit allocated to NCI  459,283   747,663   123,114   396,374   230,124   171,747   207,909   204,751   264,090   2,805,055 
Other comprehensive income allocated to NCI  -   -   -   -   -   -   -   -   (313)  (313)
                                         
Cash flow from operating activities  2,086,088   1,544,626   838,484   1,522,446   1,278,901   939,572   740,734   667,560         
Cash flow from investment activities  (1,150,754)  (680,480)  (224,873)  (254,105)  (248,702)  (845,313)  (157,852)  (170,819)        
Cash flow from financing activities  (931,763)  (920,279)  (602,121)  (1,271,787)  (1,108,039)  (111,758)  (508,833)  (498,704)        
Net increase /(decrease) in cash and cash equivalents  3,571   (56,133)  11,490   (3,446)  (77,840)  (17,499)  74,049   (1,963)        
Dividends paid to NCI  -   155,911   100,000   200,011   210,169   141,683   200,000   99,972         

F-113
41Pending Arbitration

In April 2015, a subsidiary’s construction contractor filed for an arbitration, demanding a compensation of RMB83.46 million, inclusive of interests from the subsidiary. As the arbitration is ongoing, the amount of settlement cannot be estimated reliably. No provision has been recognized as at 31 December 2016.
4243Subsequent events


(a)After the end of the reporting period, the directors proposed a final dividend. Further details are disclosed in Note 22.24.


(b)
On 14 October 2016,28 September 2018, Huaneng Group entered into a guarantee agreement with Industrial and Commercial Bank of China Limited (“ICBC”), to provide guarantee amounted USD100 million for short-term loans of Ruyi Pakistan Energy , a subsidiary of Hong Kong Energy (the short-term loans approximated RMB90million as at 31 December 2018). On 30 January 2019, the first extraordinary general meeting of the Company entered into equity transfer agreementsapproved the proposal regarding Shandong Power’s takeover of the guarantee agreement from Huaneng Group. On 6 March 2019, Shandong Power issued the confirmation letter upon the approval, which officially confirmed with ICBC that it took over the obligation of Huaneng Group to acquireunder 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.guarantee agreement thereon.


(c)The Company issued super short-term bonds with a face value of RMB4RMB2 billion bearing annual interest rate of 3.40%2.40% in January 2017, suchMarch 2019. The bonds are denominated in RMB and mature in 27090 days, with a par value of RMB100.

The Company issued super short-term bonds with a face value of RMB3 billion bearing annual interest rate of 3.67% in February 2017, such bonds are denominated in RMB and mature in 270 days, with a par value of RMB100.

The Company issued super short-term bonds with a face value of RMB3 billion bearing annual interest rate of 3.60% in March 2017, such bonds are denominated in RMB and mature in 180 days, with a par value of RMB100.

F-144

THIS PAGE IS INTENTIONALLY LEFT BLANK



F-114F-145

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
16, 2019
Huaneng Power International, Inc.
By:
/s/ Du Daming
Name:  
By:
Du Daming
/s/Huang Chaoquan
Name:  
Title:
Huang Chaoquan
Vice President and Title:
Secretary to the Board