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Huaneng Power International, Inc.: RMB 0.734 Billion Net Profit Attributed to Equity Holders of the Company in 2018

Decreased by 53.51% Compared to the Same Period Last Year

BEIJING, March 20, 2019 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI" or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its audited annual operating results for the twelve months ended December 31, 2018 prepared under the International Financial Reporting Standards, in which the Company recorded consolidated operating revenue of RMB169.551 billion (equivalent to approximately USD24.704 billion, based on the exchange rate of USD1 to RMB6.8632 as of December 31, 2018), representing increase of 11.21% compared to the same period last year; net profit attributable to equity holders of the Company amounted to RMB0.734 billion (equivalent to approximately USD0.107 billion), representing decrease of 53.51% compared to the same period last year; earnings per share amounted to RMB0.03(equivalent to approximately USD0.004), and earnings per ADS amounted to RMB1.03 (equivalent to approximately USD0.150). The year-on-year decrease in net profit was mainly attributable to the rise in fuel costs, increase in financial expenses and reduction in investment gains. The Board is satisfied with the Company's results last year.

According to the Company's Shareholders Returns Plan for 2018-2020, the Board of the Company proposed to declare a cash dividend of RMB0.10 (inclusive of tax) for each ordinary share of the Company held by shareholders.

In 2018, the Company proactively adapted to market changes, grasping opportunities that came with the reforms of the national economy and the power market while at the same time adjusting the operational strategy in a timely manner, thereby maintaining stable, safe and clean production throughout the past year. With continuous improvement in the power structure, power generation saw an increase in both volume and price. Besides, remarkable success was attained in marketing, while the management and control for fuel costs were effective as well. In addition, outstanding performance was achieved in capital operation, thus the annual operating objectives were accomplished in a more satisfactory manner and the Company was able to maintain its leading position in the industry.

In 2018, total power generated by the Company's domestic operating power plants on consolidated basis amounted to 430.457 billion kWh, representing an increase of 9.12% year-on-year. The electricity sold amounted to 405.943 billion kWh, representing an increase of 9.30% year-on-year. The annual average utilization hours of the Company's domestic power plants reached 4,208 hours, increased 257 hours compared to the same period last year, of which the utilization hours of the coal-fired units reached 4,495 hours, increased 301 hours compared to the same period last year. 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. Total heat supplied by the Company's domestic operating power plants on consolidated basis amounted to 216 million GJ, representing a year-on-year increase of 19.58%.

Throughout 2018, the Company procured an aggregate of 196 million tons of coal. The Company continued to make accurate judgments of the coal market, optimized its procurement strategy and the structure of the regional supply and reinforced its cooperation with major coal mines. By locking in quality and affordable resources in advance, the Company effectively offset the impact of the increase in the unit procurement price of standard coal and exercised better control over the procurement costs of fuel while the market price of coal remained high throughout the year. The unit fuel cost of our domestic power plants throughout the year occurred for sales of power was RMB236.89/MWh, representing a year-on-year increase of 4.85%.

In 2018, the Company continued to lead its peers in terms of production safety, technical, economic and energy consumption indicators. The average equivalent availability ratio of coal-fired units of the Company's domestic power plants was 94.51% and its weighted average house consumption rate was 4.34%. The average yearly coal consumption rate of the Company's coal-fired units for the power generated was 288.45 grams/kWh and the average yearly coal consumption rate of the Company's coal-fired units for the power sold was 307.03 grams/kWh.

The Company progressed smoothly in construction of power supply projects. During the year, the controlled generation capacity of the newly commissioned wind units and photovoltaic units of the Company was 482 MW and 171 MW, respectively. As of December 31, 2018, the Company's controlled and equity-based generating capacities were 105,991 MW and 93,755 MW, respectively.

In October 2018, the Company successfully completed the non-public issuance of 498 million A shares to seven placees at the issue price of RMB6.55 per share. The gross proceeds raised from the issuance amounted to RMB3, 260 million.

In 2018, Tuas Power Ltd. ("Tuas Power"), a wholly-owned subsidiary of the Company in Singapore, maintained safe and stable operation of the generation units throughout the year. The total market share of Tuas Power in the power generation market for the whole year was 21.1%, representing a year-on-year decrease of 0.8 percentage point and the net loss attributable to equity holders of the Company amounted to RMB695 million. In light of factors such as the adjustment to the fuel reserve policy by the Singapore Energy Market Authority, Tuas Power disposed some fuel oil inventories in 2018, seizing the favorable opportunity arising from the rise of fuel oil prices. After deducting fuel oil disposal losses and provision for deduction in price in an aggregate of RMB 320 million, the loss has been reduced by RMB 67 million as compared to that of 2017.

In 2019, the Company will remain committed to meeting the requirements of its development strategy and enhancing development quality and efficiency while actively seizing market opportunities. The Company will strive to achieve approximately 440 billion kWh for annual domestic power generation and around 4,200 hours for average utilization hours. By adhering to the goal of building a world class listed power generation company, the Company will continue to improve its operating performance so as to create more values to the country, society and shareholders.

~ End ~

Encl: The 2018 consolidated financial information of the Company and its subsidiaries prepared under IFRS.

About Huaneng Power International, Inc.

Huaneng Power International, Inc. is one of China's largest listed power producers with controlled generation capacity of 105,991 MW and equity-based generation capacity of 93,755 MW. The power plants of the Company are located in 26 provinces, autonomous regions and municipalities in China. The Company also has a wholly-owned power company in Singapore.

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