FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
March, 2004
Huaneng Power International, Inc.
West Wing, Building C, Tianyin Mansion
No. 2C Fuxingmennan Street
Xicheng District
Beijing, 100031 PRC
This Form 6-K consists of:
An announcement on 2003 annual operating results made on March 16,
2004, in English by Huaneng Power International Inc.
Exhibit 99.1
(Graphic Omitted)
To: Business Editor
[For Immediate Release]
HUANENG POWER INTERNATIONAL, INC.
Announces Annual Operating Results for 2003
Net Profit Increases by 38.50% to RMB5.430 billion
(Beijing, China, March 16, 2004) Huaneng Power International, Inc. (the
"Company") [NYSE: HNP; HKEx: 902; SSE: 600011] today announced its audited
operating results under International Financial Reporting Standards for the
year ended December 31, 2003. The Company's net operating revenues for 2003
were RMB23.388 billion (approximately US$2.826 billion based on the exchange
rate of US$1 to RMB8.2767 on December 31, 2003), a 26.60% increase over 2002.
Net profit was RMB5.430 billion (approximately US$656 million), a 38.50%
increase over 2002. Basic earnings per share was RMB0.90 (approximately
US$0.11). Basic earnings per American Depository Share (ADS) was RMB36
(approximately US$4.35). The Board of Directors of the Company was very
satisfied with the operating results for last year.
The Company's Board of Directors proposed that the Company pay dividend
consisting of both cash and the Company's stock to its shareholders. Under the
proposed dividend plan, which is subject to the approval by the Company's
shareholders at the annual general meeting of the Company, every 10 shares of
the issued and outstanding common stock of the Company will be entitled to
receiving RMB5.0 in cash and 10 shares of the Company's common stock.
In 2003, the Company strengthened equipment management and effective cost
control, thereby achieving safe and stable operation of the Company's power
plants. The Company has contributed to meeting power consumption demand,
ensuring safe power generation and supporting economic development.
In 2003, the Company's total power generation based on a consolidated basis
was 90.91 billion kWh (which includes the power generation of Xindian Power
Plant and Taicang Power Plant from November to December), an increase of
27.30% over 2002. The average availability factor of the power plants of the
Company was 92.15% and the average capacity factor was 68.06%. Average coal
consumption rates for power sold and for power generated were 335.12 gram/kWh
and 318.23 gram/kWh, respectively, while the average house consumption rate
was 4.76%. The unit fuel cost for output stayed within its estimated range as
set in the beginning of the year and only increased by 2.28%. The Company's
techno-economic indices continued to score the industry's bests in the PRC.
Huaneng Power Int'l, Inc.
Announces Annual Operating Results for 2003...P.2
The steady growth in the operating results of the Company was, on the one
hand, attributable to the increased power demand driven by the rapid and
steady economic growth of the country. On the other hand, the Company's power
project development and acquisitions also made significant contribution to the
remarkable growth of the Company's operating results for year 2003.
The Company made new breakthroughs in asset acquisitions in 2003. After
acquiring 25% equity interest in Shenzhen Energy Group in the beginning of the
year, the Company also acquired equity interest and assets of Qinbei Power
Plant, Yushe Power Plant and Xindian Power Plant from China Huaneng Group.
These two acquisitions increased the generation capacity of the Company on an
equity basis by 1,231MW, and the generation capacity under construction on an
equity basis by 1,020MW. The acquisitions made contribution to the growth of
the Company's annual operating results.
The Company is making good and smooth progress on the preliminary work of its
power plant constructions and planned projects. Two generating units with
cycled fluidized bed combustion boilers at Jining Power Plant came into
commercial operation in July and August 2003 respectively. Construction of two
330MW coal-fired generating units at Huaiyin Power Plant Phase II and one
600MW coal-fired generating unit at Shantou Power Plant Phase II have
commenced. The feasibility study report on constructing China's first two
1,000MW ultra-supercritical coal-fired generating units at Yuhuan Power Plant
Phase I has been approved by the State Council. In addition, project proposals
in relation to the construction of Taicang Power Plant Phase II (2x600MW
coal-fired generating units), Shanghai Gas-fired Power Plant (3 x 300MW-class
Combined-Cycle-Gas-Turbine generating units) and Jinling Gas-fired Power Plant
(3 x 300MW-class Combined-Cycle-Gas-Turbine generating units) have been
approved by the State Council. The Company will actively push forward the
progress of these projects based on sound commercial principles.
In addition, in considering rising oil prices and the need of reducing
operating costs, the Company shut down two 100MW oil-fired generating units at
Xindian Power Plant Phase I at the end of 2003. These two units have been in
operation for 30 years and made an operating loss in the current period. Thus
the generation capacity of Xindian Power Plant on an equity basis has
decreased from 650MW to 450MW.
Year 2004 is a year full of challenges and opportunities. The Company needs to
ensure safe production and sufficient supply of coal as well as to complete
the construction projects on schedule. We expect to continue to face pressures
from rising fuel prices, increased environmental related expenses and
increasing market competition. However, the Company has full confidence and
strength to seize opportunities and overcome challenges, and will endeavor to
fulfill the following objectives in 2004:
Huaneng Power Int'l, Inc.
Announces Annual Operating Results for 2003...P.3
1. To ensure safe and operating stability of the Company's power plants,
and achievement of their annual generation plans; and on this basis, to
analyze and formulate effective market strategies with respect to power
market and power pooling, so as to enlarge our power market shares;
2. To undertake stringent control of operating costs, in particular with
respect to fuel costs and construction costs;
3. To actively develop the proposed projects and push forward the work for
the power plants under construction, with a view to expanding the
Company's operating scale and enhancing its business strengths; and
4. To actively seek new opportunities for asset acquisitions in order to
assure continuous growth of the Company's profits and shareholder value.
The Company develops, constructs, operates and manages large thermal power
plants in China nationwide, with a total generation capacity of 15,736MW on an
equity basis. The Company wholly owns 14 power plants, and has controlling
interests in five power plants and minority interests in three power
companies. Today, the Company is one of the largest independent power
producers in China.
- End -
Attached are the consolidated financial information of the Company and its
subsidiaries as at and for the year ended December 31, 2003 (prepared under
International Financial Reporting Standards).
For further information, please contact:
Ms. Meng Jing / Ms. Zhao Lin
Huaneng Power International, Inc.
Tel: (8610) 6649 1856 / 1866
Fax: (8610) 6649 1860
Email: ir@hpi.com.cn
Ms. Christy Lai / Ms. Edith Lui
Rikes Communications Limited
Tel: (852) 2520
2201 Fax:(852) 2520 2241
Exhibit 99.2
HUANENG POWER INTERNATIONAL, INC.
BALANCE SHEET
AS OF 31ST DECEMBER, 2003
(Amounts expressed in thousands)
The Company and its subsidiaries
As of 31st December,
2003 2002
(Rmb) (US$) (Rmb)
ASSETS
Non-current assets
Property, plant and equipment, net 42,658,365 5,154,031 41,103,468
Investment in associates 2,766,031 334,195 200,960
Available-for-sale investments 254,990 30,808 254,990
Land use rights and other assets 1,037,859 125,395 1,067,838
Deferred tax assets 21,311 2,575 -
Good will 298,876 36,111 126,560
Less: Negative goodwill (1,730,949) (209,135) (1,978,227)
---------------------- ---------------------- -----------------------
Total non-current assets 45,306,483 5,473,980 40,775,589
---------------------- ---------------------- -----------------------
Current assets
Inventories, net 800,281 96,691 923,341
Other receivables and assets, net 259,421 31,344 242,905
Accounts receivable 2,804,026 338,785 2,361,833
Due from related parties 5,862 708 -
Restricted cash 159,961 19,327 13,259
Temporary cash investments 144,996 17,519 1,141,502
Cash and cash equivalents 4,128,648 498,828 3,002,601
---------------------- ---------------------- -----------------------
Total current assets 8,303,195 1,003,202 7,685,441
---------------------- ---------------------- -----------------------
Total assets 53,609,678 6,477,182 48,461,030
====================== ====================== =======================
EQUITY AND LIABILITIES
Shareholders equity
4,250,000,000 PRC Domestic Shares, par value
Rmb1.00 each, in form of legal person shares 4,250,000 513,490 4,250,000
250,000,000 A shares, par value Rmb1.00 each 250,000 30,205 250,000
1,527,671,200 (2002: 1,500,273,960) Overseas Listed
Foreign Shares, par value Rmb 1.00 each 1,527,671 184,575 1,500,274
Additional paid-in capital 10,780,133 1,302,468 10,604,843
Dedicated capital 4,328,423 522,965 3,373,423
Equity component of convertible notes 255 31 44,647
Retained earnings 12,818,873 1,548,790 10,392,873
---------------------- ---------------------- -----------------------
Total shareholders equity 33,955,355 4,102,524 30,416,060
---------------------- ---------------------- -----------------------
Minority interests 1,155,197 139,572 910,704
---------------------- ---------------------- -----------------------
Non-current liabilities
Liability component of convertible notes - - 155,999
Long-term loans from shareholders - - 388,891
Long-term bank loans 8,305,320 1,003,458 8,464,521
Other long-term loans 848,284 102,491 331,389
Other financial liabilities - - 19,397
Deferred tax liabilities 103,114 12,458 121,853
---------------------- ---------------------- -----------------------
Total non-current liabilities 9,256,718 1,118,407 9,482,050
---------------------- ---------------------- -----------------------
Current liabilities
Accounts payable and other liabilities 3,342,517 403,847 3,734,350
Taxes payable 917,362 110,837 620,189
Due to HIPDC 87,508 10,573 100,475
Due to other related parties 27,338 3,303 -
Staff welfare and bonus payable 220,896 26,689 233,566
Short-term loans 1,600,000 193,314 550,000
Current portion of long-term loans from shareholders 388,875 46,984 388,891
Current portion of long-term bank loans 2,409,240 291,087 1,928,732
Current portion of other long-term loans 243,386 29,406
Liability component of convertible notes 935 113 96,013
-
Other finacial liabilities 4,351 526 -
---------------------- ---------------------- -----------------------
Total current liabilities 9,242,408 1,116,679 7,652,216
---------------------- ---------------------- -----------------------
Total equity and liabilities 53,609,678 6,477,182 48,461,030
====================== ====================== =======================
HUANENG POWER INTERNATIONAL, INC.
STATEMENT OF INCOME
FOR THE YEAR ENDED 31ST DECEMBER, 2003
(Amounts expressed in thousands, except per share data)
The Company and its subsidiaries
-------------------------------------------------------------------------
For the Year ended 31st December,
-------------------------------------------------------------------------
2003 2002 2001
----------------------------------- ----------------- -----------------
(Rmb) (US$) (Rmb) (Rmb)
Operating revenue, net 23,388,237 2,825,793 18,474,469 15,791,362
---------------- ----------------- ----------------- -----------------
Operating expenses
Fuel (9,025,013) (1,090,412) (6,916,038) (5,147,364)
Maintenance (921,561) (111,344) (607,951) (765,712)
Depreciation (4,117,478) (497,478) (3,533,609) (3,261,001)
Labor (1,439,673) (173,943) (1,035,740) (807,136)
Service fees to HIPDC (214,723) (25,943) (263,716) (307,322)
Others (596,627) (72,085) (539,401) (488,793)
---------------- ----------------- ----------------- -----------------
Total operating expenses (16,315,075) (1,971,205) (12,896,455) (10,777,328)
---------------- ----------------- ----------------- -----------------
Profit from operation 7,073,162 854,588 5,578,014 5,014,034
---------------- ----------------- ----------------- -----------------
Interest income 53,044 6,409 83,015 113,081
Interest expense (569,148) (68,765) (561,875) (867,538)
Bank charges and exchange losses, net (28,181) (3,405) (31,405) (41,758)
---------------- ----------------- ----------------- -----------------
Total financial expenses (544,285) (65,761) (510,265) (796,215)
---------------- ----------------- ----------------- -----------------
Share of profit (loss) of associates 212,091 25,625 (11,145) (5,381)
Gain from disposal of investments 10,705 1,293 1,288 24,671
Other income, net 12,070 1,458 - -
---------------- ----------------- ----------------- -----------------
Profit before tax 6,763,743 817,203 5,057,892 4,237,109
Income tax expense (1,149,441) (138,877) (980,854) (715,220)
---------------- ----------------- ----------------- -----------------
Profit before minority interests 5,614,302 678,326 4,077,038 3,521,889
Minority interests (183,894) (22,218) (156,034) (71,231)
---------------- ----------------- ----------------- -----------------
Net profit attributable to shareholders 5,430,408 656,108 3,921,004 3,450,658
================ ================= ================= =================
Proposed dividend 3,013,836 364,135 2,049,408 1,800,000
================ ================= ================= =================
Proposed dividend per share 0.50 0.06 0.34 0.30
================ ================= ================= =================
Basic earnings per share 0.90 0.11 0.65 0.61
================ ================= ================= =================
Diluted earnings per share 0.90 0.11 0.65 0.60
================ ================= ================= =================
For the convenience of the reader, translation of amounts from Renminbi (Rmb) into United States dollars (US$)
has been made at the rate of US$1.00=Rmb8.2767 announced by the People's Bank of China as of 31st December, 2003.
No representation is made that Renminbi amounts could have been, or could be, converted into United States dollars
at that rate as of 31st December 2003, or at any other certain rate.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
under-signed, thereunto duly authorized.
HUANENG POWER INTERNATIONAL, INC.
By /s/ Wang Xiaosong
------------------------------
Name: Wang Xiaosong
Title: Vice Chairman
Date: March 16, 2004