Datang Power 2009 Annual Report

7th May 2010 14:42

DATANG INTERNATIONAL POWER GENERATION CO.,LTD

2009 Annual ReportContents-- Company Profile-- Distribution of Projects-- Major Events in 2009

-- Financial and Operating Highlights

-- Chairman's Statement

-- Management Discussion and Analysis

-- Safety and Environmental Protection

-- Human Resources Overview

-- Management of Investor Relations

-- Risk Management

-- Corporate Governance Report

-- Report of the Directors

-- Report of the Supervisory Committee

-- Taxation in the United Kingdom

-- Independent Auditor's Report

-- Balance Sheets

-- Consolidated Statement of Comprehensive Income

-- Consolidated Statement of Changes in Equity

-- Consolidated Cash Flow Statement

-- Notes to the Financial Statements

-- Supplemental Information-- Corporate Information-- Glossary of TermsFocus in Power Generation,Pursue Synergistic Diversifications,Grow into an Energy Conglomerate.Datang Power has always been committed to its diversification developmentstrategy throughout the years. The Company has witnessed its generationstructure evolving from single-mode thermal generation into a strategicallybalanced deployment of thermal power, hydropower, wind power and nuclear power.Its business structure has also extended from a pure power generation operationto a chain of upstream and downstream businesses related to power generation.In the future, based on various successful initiatives in its diversificationstrategy, Datang Power will further the development of its generation structureand business structure. It will continue to enhance its coal-fired power;aggressively expand its hydropower; continuously develop wind power; activelypursue nuclear power; focus on suitable coal operations; steadily developcoal-to-chemical projects; and secure a complementary development of railway,port and shipping. Through furthering its diversifications, Datang Powermarches towards all-encompassing synergistic developments, endeavouring todevelop into an integrated energy company that enjoys a domestic leadershipposition and international reputation.

Company Profile

Strategic Positioning

The Company focuses in the power generation business whilst deployingdiversifications; and strives for profitability as a priority whilst seekingsynergistic developments. Datang Power aims to develop itself into a companywith an operation-cum-holding orientation, an integrated energy company thatenjoys a domestic leadership position and international reputation havingstrong development capabilities, profitability and competitiveness.

Implementation Strategies

The Company will uphold an integrated-assets positioning: with the powergeneration business as its core development; with coal operations as itsfoundation; with coal-to-chemical projects as a new source of profits; and withrailway, port, and shipping as a transportation backbone. The Company willenhance its coal-fired power; aggressively expand its hydropower; continuouslydevelop wind power; actively pursue nuclear power; steadily developcoal-to-chemical projects; focus on suitable coal operations; and secure acomplementary development of railway, port, and shipping.Datang International Power Generation Company Limited ("Datang Power" or the"Company", formerly Beijing Datang Power Generation Company Limited) wasincorporated as a joint stock limited company and registered with the StateAdministration for Industry and Commerce of the People's Republic of China (the"PRC") on 13 December 1994. As one of the largest independent power producersin China, Datang Power is principally engaged in the development and operationof power plants, the sale of electricity and thermal power, and the repair andmaintenance of power equipment and power related technical services. Currently,the Company manages over 100 power generation companies, which it wholly ownsor has a controlling interest in, plus other project companies covering 18provinces throughout the country (municipalities and autonomous regions). As at31 December 2009, the registered capital of the Company amounted toapproximately Rmb11.695 billion, with total consolidated assets of the Companyand its subsidiaries amounting to approximately RMB184.2 billion respectively.Total installed capacity in operation of the Company and its subsidiariesamounted to 30,741.8MW.Please refer below link for more details:http://www.prnasia.com/sa/attachment/2010/05/20100503383355.pdf

Distribution of Projects

Please refer below link for more details:http://www.prnasia.com/sa/attachment/2010/05/2010050344304.pdf

Major Events in 2009

New Units Commenced Operation

-- Two 300MW units at Jinzhou Thermal Power Company were formally put

into commercial operation.

-- Units 3 & 4 of the Phase II (2x300MW) expansion project at Yungang

Thermal Power Company were formally put into commercial operation.

-- Two 600MW units at Daba Power Company were formally put into

commercial operation.

-- Two 300MW units at Fengrun Thermal Power Company were formally put

into commercial operation.

-- One 300MW unit at Zhangjiakou Thermal Power Company were formally put

into commercial operation.

-- Two 660MW units at Ningde Power Company were formally put into

commercial operation.

-- Three 150MW units at the Gelantan Hydropower Station of Lixianjiang

Hydropower Company were formally put into commercial operation.

-- Three 95MW units at the Jufudu Hydropower Station of Lixianjiang

Hydropower Company were formally put into commercial operation.

-- 49.5MW at Zuoyun Wind Power Company, 49.5MW at Faku Wind Power

Company and 49.5MW at Liaoning Wind Power Company were formally put into

commercial operation.

Business Developments and Financing Activities

-- The Company restructured Yuneng (Group) Company Limited.

-- The Company entered into a RMB50 billion strategic cooperation

agreement with Bank of China.

-- The Company completed the issuance of the first tranche of 2009

Medium-term Notes of the Company with an issuance amount of RMB3 billion.

-- The Company successfully issued the RMB3 billion corporate bonds.

-- Duolun Coal Chemical Company produced successfully qualified nitrite

and oxide products and succeeded in the first trial run at No. 1 Vacuum

Separator. Until then, all three vacuum separators of the company have

successfully passed their trial runs.

-- The NDRC formally approved the construction of the exemplary

coal-based natural gas project (with a capacity of 4 billion cu.m. per

annum)by Datang Energy Chemical Company Limited.

Corporate Achievements

-- The Company won the "National 1st May Labour Award".

-- The Company formally released its "2008 Corporate Social

Responsibility Report" via the web. This was the Company's first CSR report

released to the public.

-- The Company was named among "FT Global 500" by Financial Times, on

which the Company ranked 472th worldwide and 27th among listed companies in

China mainland with its total market capitalisation of USD10.6496 billion.

This was the first time that the Company was named among "FT Global 500".

Financial and Operating Highlights

Consolidated Statements of Comprehensive Income (Note) (Amounts expressed in millions of RMB)

For the year ended 31 December 2005 2006 2007 2008 2009 (Restated)Operating revenue 17,994 24,899 32,763 36,900 47,943Profit before income tax expense 3,863 4,664 6,063 600 3,231Income tax expense (813) (1,081) (1,498) (72) 639Profit attributable to:-- Equity holders of the Company 2,351 2,778 3,564 749 1,612-- Minority interests 699 805 1,001 (221) 980Consolidated Balance Sheets (Note)(Amounts expressed in millions of RMB)As at 31 December 2005 2006 2007 2008 2009 (Restated) Total assets 64,536 90,711 119,789 158,719 184,224

Total liabilities (43,807) (63,510) (85,434) (127,813) (151,376)

Minority interests (2,404) (3,305) (4,599) (4,654) (6,650)

Shareholders' equity

of the Company 18,325 23,896 29,756 26,252 26,198

Note: Financial highlights as at and for the years ended 31 December 2005 to 2007 have not been restated as a result of common control business combinations taken place in 2009.

Financial and Operating Highlights

Please refer below link for more details:http://www.prnasia.com/sa/attachment/2010/05/20100503382649.pdf

Chairman's Statement

To All Shareholders:

Looking back on the extremely challenging year of 2009, we have witnessed theglobal financial crisis spreading its impact, leading the world economy into adeep recession and severely hitting the Chinese economy. Growth in socialelectricity consumption slowed; utilisation hours of power generation unitsdecreased; and prices of thermal coal used in power generation continued tostay at a high level, while on-grid electricity tariffs failed to follow suit.Amidst the unprecedented hardships and challenges as well as the exceptionalchallenging business environment, Datang Power has managed to acquire anaccurate grasp of the macroeconomic situation and the market rhythms. All itsstaff united in concerted efforts; overcame the difficulties; successfullycompleted the production and business tasks for the year; and marched a newstep forward in various aspects including scientific development, safeproduction, green operations, staff development and harmony cultivation,thereby continuing to promote the steady and relatively rapid development ofthe Company.In 2009, we continued to fully implement the strategy aimed at pursuing powergeneration business as our core development while complementing withsynergistic diversifications, and strived to transform the mode of developmentby optimising and upgrading our assets structure. As at 31 December 2009,consolidated total installed capacity of the Company and its subsidiariesamounted to 30,742 MW. While enhancing the development of its coal-fired power,the Company has been expanding its presence in the sectors of hydropower, windpower, nuclear power and coal chemical industries. Indeed, the Company ispoised to embark a qualitative leap in diversified development.For the year ended 31 December 2009, total consolidated assets of the Companyand its subsidiaries amounted to approximately RMB184.224 billion, representingan increase of approximately 16.07% over the year of 2008 (the "PreviousYear"); consolidated operating revenue amounted to approximately RMB47.943billion, an increase of approximately 29.93% year-on-year; profit attributableto the equity holders of the Company amounted to approximately RMB1.612billion, an increase of approximately 115.16%; and earnings per share wasapproximately RMB0.14, representing an increase of approximately RMB0.08 pershare over the Previous Year.During 2009, the Company continued to maintain a high level of safe production,achieving an overall equivalent availability factor of operational generatingunits of 94.76% for the Company and its subsidiaries, Power generated by theCompany and its subsidiaries amounted to 141.87 billion kWh, an increase of11.98% year-on-year, while unit coal consumption was approximately 326.51 g/kWh, representing a decrease of approximately 4.95 g/kWh over the PreviousYear.Looking forward to 2010, although the world economy is expected to continue itsrecovery growth, the impact of the financial crisis has not fully dissipated,and the economic recovery is still faced with increasing volatilities anduncertainties. The positive conditions for China's economic recovery continueto consolidate, but certain adverse factors affecting power generationenterprises remain. Firstly, the power supply and demand situation does notlook optimistic. Secondly, there are increasing uncertainties about the trendof on-grid tariffs. Thirdly, the pressure from the requirements of energyconservation and emissions reduction is mounting gradually.Amid a changing and difficult business environment, Datang Power will continueto implement its strategy which is aimed at pursuing power generation businessas its core development complemented with synergistic diversifications. It willcontinue to optimise its assets deployment in a scientific manner, buildcomplementary competitive advantages and carry out stage-wise development in2010. It will enhance the development of its coal-fired power, aggressivelyexpand its hydropower, continuously develop wind power, actively pursue nuclearpower, and steadily proceed with non-power industries. Datang Power aims todevelop itself into a company with an operation-cum-holding orientation, anintegrated energy company that enjoys a domestic leadership position andinternational reputation having strong development capabilities, profitabilityand competitiveness, so as to seek long-term competiveness for the Company andto achieve stable returns for shareholders.In the new year, Datang Power will, as it always does, tenaciously strive forsuccess, unswervingly implement its future development strategy and constantlycreate new values for shareholders.

Last but not least, may I express my sincere gratitude to all shareholders, various organisations and friends for their trust and support.

Zhai Ruoyu Chairman 19 April 2010

Management Discussion and Analysis

As one of the largest independent power producers in the People's Republic of

China ("PRC"), the Company is principally engaged in the business of coal-firedpower generation. As at 31 December 2009, total installed capacity in operationof the Company amounted to 30,742MW. The power generation business of theCompany and its subsidiaries is mainly distributed across the power grids ofNorth China, Shanxi, Inner Mongolia, Gansu, Zhejiang, Yunnan, Fujian,Guangdong, Chongqing, Jiangxi, Liaoning, Ningxia and Qinghai.During the Year, the PRC's economy maintained steady rapid growth, with an 8.7%Gross Domestic Product (GDP) growth reported. Both power generation and powerconsumption nationwide showed accelerated growth. Power investment hasincreased; structure has improved; newly installed generating units havecontinued to remain at a relatively large scale; nationwide capability tosupply power was sufficient; and the decrease of utilisation hours of powergeneration equipment has narrowed. Overall, supply and demand in PRC wasbalanced in general, while specific provinces and regions reported surplus.Efficiency in coal-fired power generation enterprises has also improved.According to relevant information, during the Year, nationwide installedcapacity grew by approximately 10.23% year-on-year; social power consumptionincreased by 5.96% over the Previous Year, while nationwide power generationincreased by approximately 6.2% over the Previous Year.

A. Review by the Management on the Performance of Various Business Operations

(Financial data are shown according to PRC Accounting Standards. For segment

information, please refer to Note 30 to the Financial Statements.)

During the Year, given an unfavourable operating environment with coal pricesstaying continuously at high levels and utilisation hours reducing as comparedto the Previous Year, the Company rigorously enhanced production and operationand stringently controlled costs and expenses with a view to conscientiouslymitigating the impact of various factors that depressed profits, therebyensuring steady, safe and orderly production and operation management of theCompany and further increasing profitability for the Company.

1. The Power Generation Business

(1) Business Review

(i) Maintained Safe and Stable Growth in Power Production

During the Year, total power generation of the Company and its subsidiaries amounted to 141.87 billion kWh, representing an increase of 11.98% when compared to the Previous Year. Total on-grid power generation amounted to 133.552 billion kWh, representing an increase of 12.13% over the Previous Year.

The increases in total power generation and on-grid power generation were mainly attributable to an increase in the capacity of operational generating units of the Company and its subsidiaries as well as the safe and stable operation of the generating units:

(1) Comparing to the Previous Year, the Company and its subsidiaries added new installed capacity of 5,645MW.

(2) During the Year, no casualties or material damage to production facilitiesoccurred to the Company and its subsidiaries during the course of powerproduction. The equivalent availability factor of operational generating unitsstood at 94.76%.Details of the power generation of the Group during the reporting period:(Unit: billion kWh) Power Generation GrowthNo. Power Plant/Company Name for 2009 (%)1 Gao Jing Thermal Power Plant 3.1945 -11.472 Dou He Power Plant 8.2054 -8.833 Xia Hua Yuan Power Plant 1.2438 -15.424 Zhang Jia Kou Power Plant 13.1263 -5.06

5 Tianjin Datang International Panshan

Power Generation Company Limited

("Panshan Power Company") 6.2899

-4.43

6 Inner Mongolia Datang International

Tuoketuo Power Generation Company

Limited ("Tuoketuo Power Company") 19.6465

-1.22

7 Shanxi Datang International Yungang

Thermal Power Company Limited

("Yungang Thermal Power Company") 5.1893

88.00

8 Hebei Datang International Tangshan

Thermal Power Company Limited

("Tangshan Thermal Power Company") 3.5539

-15.92

9 Shanxi Datang International Shentou Power

Generation Company Limited

("Shentou Power Company") 5.0599

-9.76

10 Gansu Datang International Liancheng

Power Generation Company Limited

("Liancheng Power Company") 3.1432

-18.00

11 Hebei Datang International Wangtan

Power Generation Company Limited

("Wangtan Power Company") 6.9618

-8.20

12 Zhejiang Datang International Wushashan

Power Generation Company Limited

("Wushashan Power Company") 13.8074

-2.92

13 Guangdong Datang International Chaozhou

Power Generation Company Limited

("Chaozhou Power Company") 6.7065

-4.92

14 Fujian Datang International Ningde

Power Generation Company Limited

("Ningde Power Company") 9.9782

43.61

15 Yunnan Datang International Honghe

Power Generation Company Limited

("Honghe Power Company") 3.2143

4.62

16 Shanxi Datang International Yuncheng

Power Generation Company Limited

("Yuncheng Power Company") 6.1692

33.00

17 Jiangxi Datang International Xinyu Power

Generation Company Limited

("Xinyu Power Company") 1.9310

4.70

18 Inner Mongolia Datang International Hohhot

Thermal Power Generation Company Limited

("Hohhot Thermal Power Company") 0.9225

-19.03

19 Hebei Datang International Huaze Hydropower

Development Company Limited

("Huaze Hydropower Company") 0.0163

-37.31

20 Yunnan Datang International Nalan Hydropower

Development Company Limited

("Nalan Hydropower Company") 0.5741

-9.59

21 Yunnan Datang International Lixianjiang

Hydropower Development Company Limited

("Lixianjiang Hydropower Company") 3.9423

93.55

22 Inner Mongolia Datang International Duolun

Hydropower Multiple Development Company

Limited ("Duolun Hydropower Company") 0.0053

-32.91

23 Chongqing Datang International Pengshui

Hydropower Development Company Limited

("Pengshui Hydropower Company") 4.4706

29.28

24 Qinghai Datang International Zhiganglaka

Hydropower Generation Development

Company Limited

("Zhiganglaka Hydropower Company") 0.6646

25.68

25 Inner Mongolia Datang International Zhuozi

Windpower Company Limited

("Zhuozi Windpower Company") 0.0916

-0.11

26 Inner Mongolia Datang International Tuoketuo

No. 2 Power Generation Company Limited

("Tuoketuo Power No. 2 Plant") 6.5856

155.34

27 Liaoning Datang International Jinzhou Thermal

Power Generation Company Limited

("Jinzhou Thermal Power Company") 2.0676 Not

applicable

28 Shanxi Datang International Zuoyun Wind

Power Company Limited

("Zuoyun Wind Power Company") 0.1297 Not

applicable

29 Hebei Datang International Fengrun

Thermal Power Company Limited

("Fengrun Thermal Power Company") 0.7983 Not

applicable

30 Ningxia Datang International Daba Power

Generation Company Limited

("Daba Power Company") 2.7701 Not

applicable

31 Liaoning Datang International Faku Wind Power

Development Company Limited

("Faku Wind Power Company") 0.0567 Not

applicable

32 Hebei Datang International Zhangjiakou Thermal

Power Generation Company Limited ("Zhangjiakou

Thermal Power Company") 0.1319 Not

applicable

33 Qian'an Datang Thermal Power

Generation Company Limited

("Qian'an Thermal Power Company",

formerly consolidated under Tangshan

Thermal Power Company) 1.0038 Not

applicable

34 Liaoning Datang International Wind Power

Generation Company Limited

(originally named as "Liaoning

New Energy Company Limited")

("Liaoning Windpower Company") 0.0292 Not

applicable

35 Datang Zhangzhou Wind Power

Generation Company Limited

("Zhangzhou Wind Power Company") 0.1863 Not applicable Total 141.87 11.98

(ii) Steady Progress in Energy Savings and Emissions Reduction

During the Year, faced with enormous pressure from continuous under utilisationof generating units, less room for energy savings and higher demand onenvironmental protection, the Company has strived to maintain targetmanagement, system control, dynamic target-achievement, and monitoring on keyissues. Meanwhile, the Company endeavoured to commence technology innovation toenhance the operational mode of the generating units so as to raise theirenergy efficiency. During the Year, the coal consumption of the Company was326.51g/kWh, representing a decrease of approximately 4.95g/kWh over thePrevious Year, while the consolidated electricity consumption rate of powerplants was 5.85%, representing a reduction of 0.16 percentage-point over thePrevious Year. The coal-fired generating units of the Company and itssubsidiaries achieved a desulphurisation facilities operation rate of 99.43%,and an overall desulphurisation efficiency rate of 94.42%. The coal-firedgenerating units of the Company and its subsidiaries continued to achieve adesulphurisation facilities installation rate of 100%. The emission amounts ofsulphur dioxide, nitrogen oxides, smoke ash, and waste water decreased byapproximately 57%, 25%, 31% and 34%, respectively, over the Previous Year,which are substantially lower than the national average levels.Please refer below link for more details:http://www.prnasia.com/sa/attachment/2010/05/20100503656979.pdf

(iii) Improved Efficiency in Operational Management

During the Year, the Company was still impacted by unfavourable factors such asa surge in fuel coal prices, a decrease in power demand, limited increases intariffs and difficulties in financing for companies. Faced with such a toughoperating environment, the Company kept abreast of the trends of the marketwhile taking initiatives in planning budgets, strengthening internal managementand at the same time creating a favourable external environment, therebyrigorously enhancing production and operation: (1) Through prompt adjustmentsof the power generation evaluation system, management accountability has beenimplemented gradually, and the target of power generation was achieved. Theutilisation hours of coal-fired generating units stood at 5,255 hours, whichwas higher than the average national standard by 416 hours. (2) Throughmeasures such as increasing imported coal, on-site delivery by Tashan Coal Mineand setting up a platform on fuel management index for others to follow, fuelcosts were effectively controlled. Annual unit fuel cost was RMB174.84/MWh,representing a decrease of RMB 20.83/MWh over the Previous Year. (3) Thefavourable opportunity of the State's relatively relaxed monetary policy wascapitalised on promptly, while the loan structure was duly improved. (4)Through strengthening the capital operation, the scale of the Company wasincreased and the Company's strategic view was extended. While Yuneng Group wasrestructured successfully, the Company also issued RMB3 billion medium-termnotes and RMB3 billion corporate bonds. Xiduo Railway restructuring has beencompleted; and China Datang Corporation and the Company have also implementedcertain regional and assets re-organisation. Due to comprehensive organizationand serious work, profit for the Company could be secured.

(iv) Achieved Prominent Results in Projects Construction

During the Year, the Company's preliminary works and construction works proceeded smoothly with 13 power projects with a total capacity of 3,824.5MW being approved by the State, On non-power businesses, the Keqi coal-based natural gas project was approved, with an annual production capacity of 4 billion cu.m. per annum of coal-based natural gas.

During the Year, the staff of the Company and its subsidiaries overcame variouschallenges, such as difficulties in securing delivery of generation facilitiesand in carrying out construction works. Through carrying out conscientiousorganisation and coordination work, the Company managed to keep its schedule ofconstruction-in-progress basically under control. During the Year, generatingunits with a total capacity of 5,645MW successfully commenced operation. TheDuolun Coal Chemical Project entered into the trial run stage, while ShengliCoal Mine East Unit 2 commenced production of coal. Among the new capacityadded:

-- 4,660MW of capacity was added to coal-fired power projects,

mainly including: two 300MW generating units at Jinzhou Thermal Power

Company; two 300MW generating units at Yungang Thermal Power Company; two

600MW generating units at Daba Power Company; two 660MW generating units

at Ningde Power Company; two 300MW generating units at Fengrun Thermal

Power Company; and one 300MW generating unit at Zhangjiakou Thermal Power

Company.

-- 735MW of capacity was added to hydropower projects, including:

three 150MW generating units at the Gelantan Hydropower Station of

Lixinjiang Hydropower Company; and three 95MW generating units at the

Jufudu Hydropower Station.

-- 250MW of capacity was added to wind power projects, including:

49.5MW generating units at Zuoyun Windpower Company; 49.5MW generating units at Faku Windpower Company; 49.5MW generating units at Liaoning Windpower Company; and 101.6MW generating units at Zhangzhou Windpower Company.As at the end of 2009, the generation capacities of coal-fired power,hydropower and wind power accounted for 88.06%, 11%, and 0.94% of the Company'sinstalled capacity, respectively. As compared to the Previous Year, the ratioof coal-fired power decreased by 1.23%, while the ratios of hydropower and windpower increased by 0.45% and 0.78%, respectively. The Company's powergeneration structure was further optimised.

(2) Major Financial Indicators and Analysis

(i) Operating Revenue

Revenues of the Group from electricity sales and heat sales accounted for approximately 88.49% of the total operating revenue, of which revenue from electricity sales accounted for approximately 87.69% of the total operating revenue.

During the Year, the Group achieved operating revenues of approximatelyRMB42,043 million and RMB383 million from electricity sales and heat sales,respectively, representing increases of approximately 16.82% and 73.79% overthe Previous Year, respectively. The increase in revenue from electricity salesamounted to approximately RMB6,053 million, which is mainly due to the impactof two on-grid tariff adjustments in the second half of year 2008.

(ii) Operating Costs

During the Year, operating costs in electricity sales and heat sales of theGroup amounted to approximately RMB33,609 million and RMB644 million,respectively, representing increases of approximately RMB1,949 million andRMB204 million respectively, or approximately 6.15% and 46.26% respectively,over the Previous Year. Of these figures, fuel costs accounted forapproximately 64.66% of the operating costs in electricity sales and heat salesof the Group. Fuel costs decrease by approximately Rmb359 million or 1.60% overthe Previous Year. Depreciation accounted for approximately 21.76% of the costsin electricity sales and heat sales, representing an increase of approximatelyRMB1,337 million over the Previous Year, or 21.86%. The main reason was thecommencement of operations of certain generating units in the second half of2008 and during the Year.(iii) Operating ProfitDuring the Year, gross profit from electricity sales was approximately RMB8,173million, while the gross profit margin was approximately 19.27%, representingan increase of approximately 7.91% over the Previous Year.

2. The Chemical Business

The Duolun Coal Chemical Project, developed and constructed by the Group as acontrolling interest, is located at Duolun County, Xilinguole Pledge, InnerMongolia. It uses lignite coal from the East Unit 2 of Inner Mongolia ShengliCoal Mine as raw materials; and it applies internationally advancedtechnologies including the technology of vapourising coal ash, the syngaspurification technology, the large-scale ethanol synthesis technology, thetechnology to convert methanol to propylene, and the propylene polymerisationtechnology to produce coal chemical products. The project is the latest coalchemical project, and the coal it uses is clean, highly efficient and has highadded-value. The final product of the project is 460,000 tonnes/ year ofpolypropylene and other by-products.

The project is still under construction. It is expected that the successful development and construction of this project will be a new point of profit growth for the Group.

3. The Coal Business(1) Business ReviewThe Shengli Coal Mine East Unit 2, developed and constructed by the Company, islocated in the central part of Shengli Coal Mine in Inner Mongolia. Its coalproducts will mainly be supplied as raw materials to the coal chemical andcoal-based natural gas projects including the Duolun Coal Chemical Project andthe Keshiketeng Qi Coal-based Natural Gas Project. The Phase 1 project has aproduction capacity of 10 million tonnes. Such project has already obtained theState's approval, and has started coal production during the Year. The Companyis currently engaged in preliminary development works for Phase 2 and Phase 3projects of the Shengli Coal Mine East Unit 2, the Wujianfang Coal Mine and theKongduigou Coal Mine.

The Company has considered and approved, at a recent Board meeting, the resolution on the acquisition of 70% interest in Inner Mongolia Baoli Coal Company Limited ("Baoli Company"). The open-cut coal mine owned by Baoli Company is located in E'erduosi City, Inner Mongolia. Its designed production scale is 1.2 million tonnes per annum. The successful developments and acquisitions of the above-said coal mine projects will enhance the coal consumption self-sufficiency of the Company's power plants.

To further secure coal supply and lower fuel cost, Beijing Datang Fuel CompanyLimited ("Fuel Company"), a wholly-owned subsidiary of the Company, proactivelyexpanded its coal sales business and increased its coal sales during the Year.

(2) Major Financial Indicators and Analysis

(i) Operating Revenue

During the Year, operating revenue from the coal business of the Group amountedto approximately RMB5,144 million, accounting for 10.73% of the total revenueof the Group, representing an increase of approximately RMB4,759 million overthe Previous Year. The increase in the operating revenue is mainly due to,apart from the sales of coal produced by the Group itself, an increase in thecoal sales business by Fuel Company, a wholly-owned subsidiary of the Company.

(ii) Operating Costs

During the Year, operating costs in the coal business amounted to approximatelyRMB4,860 million, representing an increase of approximately RMB4,667 millionover the Previous Year. The increase in operating costs is mainly due to theincreased coal business of Fuel Company.

(iii) Operating Profit

During the Year, gross profit from the coal business was approximately RMB283million, while the gross profit margin was approximately 5.51%, representing adecrease of approximately 44.22% over the Previous Year. The decrease in marginwas primarily attributable to change in sales mix.

B. Management's Review on Consolidated Operating Results

1. Operating Revenue

During the Year, operating revenues of the Group amounted to approximately RMB47,943 million, representing an increase of approximately 29.93% over the Previous Year, of which the increase in electricity sales amounted to approximately RMB6,053 million.

2. Operating Costs

During the Year, operating costs of the Group amounted to approximatelyRMB41,199 million, representing an increase of approximately RMB7,191 million,or approximately 21.15%, over the Previous Year. Among the operating costs,fuel cost accounted for approximately 65.56%, and depreciation cost accountedfor approximately 18.22%.3. Net Finance Costs

During the Year, finance costs of the Group amounted to RMB4,111 million, representing an increase of approximately RMB416 million or 11.25% over the Previous Year. The significant increase was mainly due to an increase in interest expense during the Year caused by an increase in the drawdown of borrowings and the ending of capitalisation of interest for newly operated generating units.

4. Profit Before Tax and Net Profit

During the Year, the Group reported a profit before tax amounting toapproximately RMB3,231 million, representing an increase of 438.32% over thePrevious Year. Net profit attributable to equity holders of the Companyamounted to approximately RMB1,612 million, representing an increase of 115.16%over the Previous Year. The increase in profits of the Group was mainlyattributable to the increase in operating revenue and decrease of unit fuelcost.

5. Financial Position

As at 31 December 2009, total assets of the Group amounted to approximatelyRMB184,224 million, representing an increase of approximately RMB25,505 millionas compared to the end of 2008. The increase in total assets mainly resultedfrom the implementation of the expansion strategy by the Group which led to acorresponding increase in investments in property, plant and equipment.Total liabilities of the Group amounted to approximately RMB151,376 million,representing an increase of approximately RMB23,563 million over the end of2008. Of the total liabilities, long-term liabilities increased byapproximately RMB35,890 million over the end of 2008. The increase in totalliabilities was mainly due to an increase in the Group's borrowing level so asto meet the needs of daily operations and infrastructure construction. Equityattributable to equity holders of the Company amounted to approximatelyRMB26,198 million, representing a decrease of approximately RMB53 million overthe end of 2008. Net asset value per share attributable to equity holders ofthe Company amounted to RMB2.22, representing a decrease of RMB0.01 per shareover the end of 2008.6. Liquidity

As at 31 December 2009, the asset-to-liability ratio for the Group was approximately 82.17%. The net debt-to-equity ratio (i.e. (loans +medium-term notes + corporate bonds - cash and cash equivalents)/total equity) was approximately 396.83%.

As at 31 December 2009, the cash and cash equivalents held by the Group amounted to approximately RMB1,506 million, of which deposits equivalent to approximately RMB163 million were foreign currency deposits. During the Year, the Group had no entrusted deposits or overdue fixed deposits.

As at 31 December 2009, short-term loans of the Group amounted to approximatelyRMB19,569 million, bearing annual interest rates ranging from 2.10% to 7.47%.Long-term loans (excluding those repayable within 1 year) amounted toapproximately RMB99,507 million and long-term loans repayable within 1 yearamounted to approximately RMB6,842 million. All long-term loans (includingthose repayable within 1 year) were at annual interest rates ranging from 1.13%to 7.83%, of which loan balances equivalent to approximately RMB1,233 millionwere denominated in US dollar, and loan balances equivalent to approximatelyRMB670 million were denominated in HK dollar. Among short-term and long-termloans, loan balances of approximately RMB143 million are bearing fixed interestrate of 4.14%. The Group constantly pays close attention to foreign exchangemarket fluctuations and cautiously assesses foreign currency risks. Certainassets including accounts receivable and property, plant and equipment, etc.were pledged against certain borrowings of the Group. For details, please referto Notes 22 and 27 to the Financial Statements attached. In addition, as at 31December 2009, medium-term notes held by the Group amounted to approximatelyRMB2,962 million, which are of 5-year term with fixed annual coupon andeffective interest rates of 4.10% and 4.44%, respectively. As at 31 December2009, corporate bonds held by the Group amounted to approximately RMB2,977million, which are of 10-year term with a fixed annual coupon and effectiveinterest rates of 5.00% and 5.10%, respectively. All such medium-term notes andcorporate bonds are denominated in RMB.On 30 November 2009, the Company acquired 100% equity interests of DatangLiaoning New Energy Co., Ltd. and its subsidiary and Datang Zhangzhou WindPower Co., Ltd. from China Datang Corporation ("China Datang") for a cashconsideration of Rmb264.75 million, while Datang Energy and Chemical CompanyLimited, one of its wholly-owned subsidiaries, acquired 100% equity interest ofDatang Hulunbei'er Fertiliser Company Limited from China Datang for a cashconsideration of approximately Rmb51.22 million. In addition, in year 2009, theCompany acquired Ningxia Datang International Daba Power Generation CompanyLimited ("Daba Power Company") by entering into an agreement with anothershareholder of Daba Power Company, and accounted Daba Power Company as asubsidiary. For details of the above-mentioned material acquisitions, pleaserefer to Note 5 to the Financial Statements attached.The Group expects to incur capital expenditures on construction and purchasesof electricity facilities, plants, equipment and other projects in future. TheGroup finances the above-mentioned material acquisitions in 2009 and capitalexpenditures of future years primarily through internal funding, cash flow fromoperating activities and debts and equity financing.

7. Welfare Policy

As at 31 December 2009, the staff of the Group totalled 15,670. During theYear, the costs of salaries and staff welfare of the Group amounted to RMB1,822million. The Group adopts the basic salary system on the basis ofposition-points salary distribution. The Group carries out evaluation of itssubordinated enterprises based on a profit accountability system, and adopts anincentive system for the senior management of its subordinated enterprisesbased on assessments of capital operations, safe production and improved CPS'santi-corruption work. The Group is concerned about personal growth andoccupational training. It implements a reward mechanism of "unification oftraining, usage and remuneration". Based on the basic principles of"identifying targets scientifically and providing training depending on actualneeds", and led by the strategy of developing talents and strong corporations,the Group relies on a three-tier management organisational structure andimplements an all-staff training scheme for various levels.

C. Outlook for 2010

Year 2010 is the last year for implementing the State's "Eleventh Five-yearPlan" and is the last year for the Phase I of the Company's mid-termdevelopment plans. The power industry still faced the tough operatingenvironment of high coal prices and low tariffs. However, given the recovery ofthe macro-economy, power demands increase gradually, and the supports from thegovernment at various levels as a foundation industry for a sustainabledevelopment of the nation's economy. the Company is thus provided withsufficient room and opportunities for its further development.Faced with a complex and ever-changing situation, the Company will continue toimplement an overall strategy that focuses on pursuing the power generationbusiness as its core development whilst complementing with synergisticdiversifications. The Company will do its utmost in 2010 to achieve theproduction and operation targets for 2010 with a persistent focus onprofitability and safe production. It will strive to achieve a power generationof 170 billion kWh. The Company will strive to dedicate efforts to thefollowing areas of work in 2010:

(1) To ensure safe production on a continuous basis and endeavour to be a

fundamentally safe company.

(2) To expand income while reducing expenditures so as to enhance the

profitability of the Company.

(3) To actively pursue structural adjustments so as to raise development

quality and efficiency throughout the Company.

(4) To step up efforts in improving management and focus on the construction

of basic infrastructures.

(5) To raise the standards in capital operations and fully leverage the

financing capacity of the Company.

(6) To implement a lean management, thus further improving the Company's

management performance.

(7) To push forward the work on energy conservation and emissions reduction in

order to maintain a leadership position of the Company in the industry.

(8) To speed up the development of human resources so as to achieve the goal

of developing into a strong corporation with strong talents.

Safety and Environmental Protection

Production Safety -- Creating a Fundamentally Safe Enterprise

Production safety is related to social harmony and stability, the survival anddevelopment of an enterprise, and employees' life safety. Power generation isunique in nature: complicated systems, stringent requirements, and beingclosely related to the society and people's livelihood. Given all thesefactors, production safety of a power enterprise is of utmost importance.

Innovation in safety management ideas

Datang International always puts production safety as the premises and foundation of enterprise development. It adheres to the safely management belief that "Safe production is of almost importance", striving to build a fundamentally safe enterprise. The Company endeavours to establish an accountability system and an improvement mechanism, and through safety reliability designs on various elements of the production flow including people, materials, systems and regimes, hazardous factors have been brought under control, thereby achieving zero defects and nil accidents.

Cultivating the awareness about "fundamental safety"

The Company actively cultivates a strong sense of "Everyone wants to be safe,everyone acts safely and everyone assures safety" through strengthening thesense of responsibility for safety, the awareness about safety implementationand the awareness about life among employees. Employees are guided to establishthe concepts that "hidden problems can be eliminated, risks can be prevented,mistakes should be avoided and incidents can be controlled ".

Strengthening the basis of management

In 2009, by combining the requirements for the 3-tier responsibility managementsystem of "Headquarters - Professional companies and Regional companies - Baselevel enterprises ", the Company improved and revised a series of safetymanagement systems including the "Work Rules for Production Safety " and the"Management Rules for Production Safety Accountability" and launched variousmeasures including "Ten Prohibitions for Production Safety" and "StrictAppraisal Rules for Personal Injury Incidents at Datang International".The Company strengthened the management of all staff, all processes and fromall perspectives according to the performance appraisals for all staff. Itstrengthened safety monitoring management of frontline staff, and promoted astandardisation of on-site operation. A unified management model wasimplemented for regulating safety management in external projects division andoutsourcing teams.

Governance of hidden safety hazards

The Company regards supervision and management of major sources of hazards asimportant measures to prevent and control safety hazard incidents. On the basisof scientific assessment and tier-by-tier management, the Company strengtheneddynamic management to ensure risks were under control.The Company established a mechanism for eliminating and detecting hidden safetyhazards. Suspension of work for reform and improvement was strictly implementedwhen hidden safety hazards were detected for elimination. The advantages of"Two Databanks and Two Mechanisms" (namely, the problems databank, the expertsdatabank, the implementation supervision mechanism and the case resolutionmechanism) were fully utilised to realise online management of problems, onlinereform and improvement and online supervision. As a result, the Company hasestablished a closed-loop system which is equipped with a mechanism to detectproblems, a platform to manage problems, a pool of experts to resolve problems,a pool of designated persons to implement reforms and improvements, a pool ofmanagement persons to oversee implementation and supervision, and a stipulatedcode for case handling and resolution.

Ensuring safe operation of equipment

Ensuring safe operation of equipment is fundamental to assurance of productionsafety. The Company attached great importance to equipment management bycontinuously improving the equipment management process and promotingprofessional equipment management. Through continuously strengthening thesupervision on technology, repairs and maintenance and operations management aswell as steadily rolling out the site inspection and regular repairs mechanism,equipment disruptions were prevented and reduced to the maximum extent. TheCompany also attached great importance to the full process management ofinspection and repairs for generation units and has established the "qualityaccountability mechanism".

Strengthening the contingency mechanism

The Company attached great importance to the management of accidents. Throughthe preparation, assessment, training for and rehearsal of contingency plans,the capability of contingency management for various types of productionsafety-related incidents was enhanced continuously. In 2009, the "Rules forAccidents Management" and the contingency plans in respect of coal chemicals,shipping, coal mining, information networks and typhoons were formulated.Rehearsals for a number of contingency plans including those for fire fighting,hydrogen supply station explosion, power grid disruption and ammonia gasstation leakage were conducted. Enterprises located at key flood warning areas,coastal power generation companies and infrastructural enterprises have rolledout full-scale contingency plans for avalanche, landslide and mudflowdisasters.

Environmental Protection: Building a Two-pronged Enterprise

Datang International adheres to the objective of establishing itself as aresource-conserving and environmentally-friendly enterprise (a "two-prongedenterprise"). It ensures that first-class environmental protection designs,construction works and facilities are adopted, conducted and operating in itspower plants, striving to achieve a coordinated development of economicefficiency and environmental protection for the enterprise. It has persisted inbuilding a "resources-conserving and environmentally friendly" enterprise.

Optimising the generation structure

The Company continued to optimise the generation structure. It optimised thedevelopment coal-fired power; aggressively expanded its hydropower;continuously developed wind power; actively pursued nuclear power; andcontinuously increased the Company's core competitiveness, creating a betterpath for the sustainable development of the Company.Please refer below link for more details:http://www.prnasia.com/sa/attachment/2010/05/20100503198932.pdf

Enhancing energy saving

The Company proceeded with an in-depth implementation of the concept of energyconservation; strengthened the whole-process management of coal consumption;and implemented energy-saving technological renovation and equipment managementto facilitate the smoothing proceeding of energy conservation and emissionsreduction.The Company implemented coal consumption indicators at each power plant and foreach generating unit. The Company carried out activities of comparing theenergy efficiency indicators of generating units with the advanced indicatorsof similar generating units, enhanced dynamic tracking, and conducted economicevaluations to include the energy efficiency indicators into the incentive andappraisal mechanism, optimising the power generation structure to tap thepotential of energy saving.Please refer below link for more details:http://www.prnasia.com/sa/attachment/2010/05/20100503865585.pdf

Reducing resources consumption

The Company reinforced the integrated control over water conservation and applied water conservation technologies such as air-cooling, seawater desalting, reclaimed water recycling, waste water processing, advanced treatment of circulating cooling water and dry slagging in water-deficient areas, and increased the water recycling rate through the grading of water according to quality.

The Company proactively adopted new energy saving technologies; stepped upefforts in equipment energy saving reforms; increased the operating efficiencyof generating units; lowered heat consumption in operation; and reduced coalconsumption. In 2009, we completed projects such as the renovation of the flowpart of the generating units and the enhancement of the efficiency of turbines,the renovation of high-voltage frequency inverters, the renovation of boilersmall oil guns and the treatment on the internal leakage of high-temperatureand high-pressure valves, and generating unit vacuum treatment, resulting in asharp improvement in energy-saving and emissions reduction indicators.

Reducing emissions of pollutants

The Company determined "targets, problems, measures, results, responsibilities"in respect of emissions reduction on a step-by-step basis and fulfilled theleadership, technical, supervisory and on-site management responsibilities. Italso reinforced the maintenance and management of environmental protectionfacilities and reduced pollutant discharges.The Company proactively proceeded with desulphurisation and denitrification inaccordance with the environmental protection requirements of the State. Itsdesulphurisation achieved industry-leading standards in the PRC. In 2009, theCompany conducted on-site desulphurisation inspections and organizeddesulphurisation-related training and provided specifications and guidance forthe operation, maintenance and management and data specifications ofdesulphurisation systems. The desulphurisation equipment operation rate and theoverall desulphurisation efficiency achieved 99.43% and 94.42% respectively,representing increases of 1.52% and 1.20% year-on-year. The Company alsoprepared and implemented the "Datang International "12thFive-year Plan" Denitrification Plan" to strengthen the planning of nitrogenoxide control so as to further reduce the discharges of pollutants.

Strengthening ecological preservation

The Company fully abided by international treaties, adhered to the implementation of the State's environmental protection policies and conscientiously conducted assessments on the environmental impact of its construction projects. During the process of construction, the Company paid close attention to water and soil conservation, ecological diversity protection, and vegetation protection, striving to achieve a win-win situation between the use of resources and ecological environment protection.

Pushing forward technology innovation, Developing a recycling economy

The Company puts emphasis on matching its corporate development strategies withan enhancement of self-reliant innovation capabilities. With the establishmentof the Datang International Science & Technology Management Steering Committee,the Company has been gradually enhancing its technology management and itsscience and technology innovation regime, and has devised a series ofmechanisms to manage science and technology projects and to reward science andtechnology achievements, thereby laying a foundation for advancement andinnovation in science and technology. The Company has successively embarkedresearches in new advanced technologies regardingcoal-to-chemical, coal-to-gas, desulphurisation of coal-fired plants,denitrification, vacuum cooling, dry slag handling and treatment of wastewater.The Company took an active role in the development of a recycling economy,emphasising the recycled and integrated use of ash, pulverised fuel ash,desulphurised gypsum and waste water. The Company took the lead in constructingthe aluminium-silicon-titanium project to create the "coal-electricity-ash-aluminium" recycling-economy assets chain. The resourcesintegrated utilisation and recycling-economy project undertaken by RenewableEnergy Resource Development Company, a subsidiary of the Company, is a keyproject under the technology support plan of the Inner Mongolia AutonomousRegion. The project will realise the recycling of waste cinder and pulverizedfuel ash.Human Resources OverviewThe Company believes in a scientific view of talents which emphasises "peopleare the prime resources" and "everyone has talent and can be successful". Itfully adheres to its motto of "respect labour, knowledge and talents" in humanresources. The Company has strove to align individual growth of staff with thegrowth of the Company by providing staff with sufficient career developmentopportunities and sharing developmental achievements of the Company with them.

A sound training system

The Company placed high emphasis on employee development. In the light of thegrowth aspirations of employees, the Company undertook various tasks such asconducting training at all levels, employee skill assessment, professionaltechnical qualification evaluation and "112 Talent Appraisal". The Companypersisted in combining learning and practice and combining nurturing anddeployment to promote the all-round development of talents.The Company cooperated with renowned colleges to conduct academic education.Various subsidiaries established training bases and simulation centres. In2009, the Company and its subsidiaries invested funds of approximately RMB30million on a total of 989,089 training hours for the full year. The Companyprovided training for its staff with a total enrollment of 180,027. Businessmanagement personnel and professional technicians received training of 15,993man-times and production skilled personnel received training of 149,301man-times. The ratio of employees receiving training reached 100%.

Incentive mechanism

We adopted various incentive mechanisms to encourage and retain talents. TheCompany implemented reforms on the job-position determined remunerationmechanism with more attention on the incentives given to frontline productionemployees and skilled workers. The Company promoted comprehensive performanceappraisal management, stimulating the enthusiasm of production technical andskilled workers and granting special awards to employees with outstandingcontributions.

Safeguarding the fundamental interests of employees

The Company strictly complied with the "Labour Law", the "Labour Contract Law"and the "Law on the Protection of Women's Rights and Interests" and protectedthe legitimate interests of employees according to the law. The ratio ofentering into labour contracts was 100% and the collective contract coveragewas 100%. The Company also continued to implement the paid leave system,fulfilling the requirement of caring for the physical and mental health ofemployees.The Company regularly organised health checkups for all employees and createdhealth files, with a focus on checking employees engaging in special tasks andoffered guiding advice to employees on their health conditions. In 2009, theCompany implemented the "Ten Measures to Benefit the Employees" andcontinuously improved the livelihood of employees. Staff training in 2009Training programmes 3,586Percentage of staff training 100%Training enrollments (man-times) 180,027

Among which: Corporate management and

Professional technicians 15,993 Production technicians 149,301 Certification and evaluation of professional and technical qualifications of the staffWith professional qualifications 1,764With operation qualifications 843With technical qualifications 1,315

Major Awards and Titles of Outstanding Individuals in 2009

Number of PeopleAward Granting Authority Awardees"National 1st May All China Federation of Labour Award" Trade Unions 4New Century 7 ministries including the Talented People Ministry of Human Selection Project Resources and Social Security 1Model Workers of State-owned AssetsState-owned Supervision and Enterprises Administration Commission 1Nationwide All China Federation Outstanding of Trade UnionsUnion Workers 1New Stars of China Electricity Council Power Education and Training 2

Board, Supervisory Committee and Senior Management

Members of the BoardExecutive DirectorsCao Jingshan

Aged 47, graduated from Dalian University of Technology major in technicaleconomics and management. He holds a doctorate degree and is a senioreconomist. Mr. Cao commenced his career in 1981 in Yuanbaoshan Power Plant andwas successively Assistant to Plant Manager, Chairman of the Labour Union,Deputy Plant Manager and Plant Manager of Yuanbaoshan Power Plant. From January2003, he became Deputy Head of the President's Office (Person-in-Charge), andhas been the Head of the President's Office cum Head of the InternationalCooperation Department of China Datang Corporation since January 2003. Startingfrom April 2008, Mr. Cao has been the President of the Company, and he has beenthe Executive Director and Vice Chairman of the Company since 30 May 2008. Mr.Cao has long been engaged in electricity production, technical and operationmanagement, with extensive knowledge and practical experience in electricitygeneration and operation management.

Zhou Gang

Aged 46, graduated from East China Institute of Water Conservancy (currentlyknown as Hehai University) with master degree of technology and master ofbusiness administration, is a senior engineer. He is currently Deputy GeneralManager of the Company and Secretary to the Board. Mr. Zhou started his careerin 1985 in Fu Chun Jiang Hydropower Plant of East China ElectricityAdministrative Bureau. Mr. Zhou later worked for China National Water Resources& Electric Power Materials & Equipment Corporation as Deputy Manager of theInformation Department, Deputy Director and then Director of the GeneralManager's Office, Deputy General Engineer and Deputy General Manager; DeputyGeneral Manager of China National Water Resources & Electric Power Materials &Equipment Co., Ltd. and General Manager of its Shanghai company as well asDeputy Director of the International Cooperation Division of the GeneralManager's Office of China Datang Corporation. Mr. Zhou has become VicePresident of the Company since June 2007. Mr. Zhou has extensive experience ininternational cooperation, power resources management and power generationenterprise operation and management.

Non-executive Directors

Zhai Ruoyu

Aged 64, graduated from the Economic Management Department of LiaoningUniversity, is a professor-grade senior engineer. He is currently Chairman ofthe Company. Mr. Zhai worked at the Liaoning Power Plant since 1966 and heldvarious positions including Deputy Director and Director. Since 1992, Mr. Zhaihad held various positions including Deputy Chief of the Security andEnvironmental Protection Division of the Ministry of Energy of the PRC, DeputyChief of Safe Production Division of Ministry of Power Industry, DeputyDirector and later Director seconded by the Central Disciplinary Committee andthe Ministry of Supervision to the Supervisory Bureau of the Ministry of PowerIndustry, as well as Head of General Office of the State Power Corporation ofthe PRC Ministry of Power Industry. In March 1999, Mr. Zhai took up theposition of Party Secretary and President of the Northeast Branch of the StatePower Corporation. He served as Party Secretary and President of North ChinaPower Group Company since October 2000. He became President of China DatangCorporation in December 2002. In March 2003, Mr. Zhai was appointed a delegateto the 10th National People's Congress. In March 2008, Mr. Zhai was appointed adelegate to the 11th National Committee of the Chinese People's PoliticalConsultative Conference. With 40 years' experience in the power industry, Mr.Zhai has long been engaged in the fields of power production, productiontechnology management, administration and operations management. He hasextensive experience with specific expertise in power generation and operationsmanagement.Hu ShengmuAged 50, university graduate, is a senior accountant. He is currently the PartyCommissioner and Chief Financial Controller of China Datang Corporation. Mr. Hujoined North China Power Corporation as he worked in Beijing Power SupplyBureau in 1981. He had been the Deputy Head and the Deputy Manager of theFinance Department of the North China Power Administration Bureau (NCPGC), theChief Accountant and Financial Manager of the Company and the Chief Accountantof NCPGC. Mr. Hu was appointed Chief Accountant of China Datang Corporation inJanuary 2003. Mr. Hu has been involved in financial management of power systemfor 27 years. He is knowledgeable in financial management and has extensiveexperience in financial practices.

Fang Qinghai

Aged 56, post-graduate, is a senior engineer. He is currently the Head of thePlanning, Investment and Financing Department of China Datang Corporation. Mr.Fang joined Anshan Power Plant in 1974 and since then took up various positionsincluding Deputy Head of the Communist Party Committee Office of Anshan PowerPlant, Division Chief of the Production Planning Division, the IntegratedPlanning Department of Northeast Power Administration Bureau, Deputy Head ofthe Integrated Planning Department, Deputy Head and Head of the Development andPlanning Department of the State Power Corporation (Northeast Company), Head ofthe Power Exchange Centre of Northeast China Power Grid, Deputy Chief Engineerand Head of the Development and Planning Department of Northeast China PowerGrid Company Ltd. He became Deputy Chief of the Development and PlanningDepartment of China Datang Corporation in April 2005, and has become Head ofthe Planning, Investment and Financing Department of China Datang Corporationsince November 2006. Mr. Fang has been involved in the power system for manyyears and is well experienced in power generation and operation.

Liu Haixia

Aged 49, graduated from North China Power College majoring in power plantthermal energy. He subsequently pursued postgraduate studies in BusinessAdministration in the Renmin University of China. He is a senior engineer andAssistant to President of Beijing Energy Investment Holding Company Limited.Mr. Liu joined Beijing Electric Power Company in 1983 and since then took uppositions of Technician, Engineer and Assistant to Manager and Deputy Manager.He has been Assistant to President of Beijing International Power Developmentand Investment Company since 1998. He has been Assistant to President ofBeijing Energy Investment (Group) Company Limited since December 2004. With hislong-standing involvement in corporate management and planning management ofpower companies, Mr. Liu has acquired extensive experience in corporatemanagement and industrial planning and investment.

Guan Tiangang

Aged 43, graduated from North China Power College majoring in thermal dynamicsand possesses a master degree in Finance from the Renmin University of China.She is a senior engineer and currently the Vice President and the Secretary tothe Board of Directors of Beijing Jingneng International Energy CompanyLimited. She started her career in 1990, and had worked as a teacher inShijingshan Thermal Power Plant Education Centre and as Project Manager of theInvestment Department of Beijing International Power Development and InvestmentCompany. She has become the Deputy Manager of the Power Investment andManagement Department of Beijing International Power Development and InvestmentCompany and Manager of the Power Generation and Operation Department of BeijingInternational Power Development and Investment Company. She has become theManager of the Power Generation and Operation Department of Beijing EnergyInvestment (Group) Company since December 2004. Since February 2007, she hasbecome the Vice President and the Secretary to the Board of Directors ofBeijing Jingneng International Energy Company Limited. Ms. Guan has long beenengaged in the work of power investment operation, and has extensive experiencein power investment and finance planning and management.

Su Tiegang

Aged 62, university graduate, is a senior engineer. He is currently the VicePresident of Hebei Construction Investment Company. He started his career in1968 and had worked in the County Commission of Zefu, Qinghai Province, theProvincial Construction Commission of Qinghai Province and Qinghai No. 3Construction Engineering Company. Mr. Su became Head of the Raw Materials andProjects Division of Hebei Construction Investment Company since October 1989.Since December 1990, he served in Hebei Provincial Planning Committee as Headof the Investment Department. He has become Vice President of HebeiConstruction Investment Company since October 1993. With his long-standinginvolvement in corporate management and planning management, Mr. Su is wellexperienced in corporate management and industrial planning and investment.

Ye Yonghui

Aged 58, is presently the Deputy Chief Economist of Hebei ConstructionInvestment Company. Mr. Ye started his career in 1969 and joined the EnergyBranch of Hebei Construction Investment Company in 1990, holding positions suchas Administrative Officer, Deputy Manager and Manager of the Jibei Branch. FromSeptember 1999 to January 2004, he was the Manager of the Energy Branch of HebiConstruction Investment Company. From January 2004 to March 2006, he was theManager of the Energy Business Department I of Hebei Construction InvestmentCompany. From March 2006 to March 2007, he served as Deputy Chief Economist andManager of the Energy Business Department I of Hebei Construction InvestmentCompany. From March 2007 to date, he was the Deputy Chief Economist of HebeiConstruction Investment Company. With his long-standing involvement incorporate management and planning management, Mr. Ye has acquired extensiveexperience in corporate management and industrial planning and investment.

Li Gengsheng

Aged 50, a holder of MBA, graduated from Northeast Power College with abachelor's degree in thermal dynamic and from China Europe InternationalBusiness School with a postgraduate MBA degree. Mr. Li is a professor gradesenior engineer and he is currently the General Manager of Tianjin JinnengInvestment Company. Mr. Li joined Hebei Electric Construction Company in 1983,and subsequently worked as Deputy Head of the Thermal Control Office of TianjinPower Scientific Institute, Deputy Manager of Tianjin Power InfrastructureSubcontracting Company, Deputy General Manager of Huaneng Yangliuqing ThermalPower Co., Ltd., Deputy General Manager of Tianjin Jinneng Investment Company,and has been General Manager of Tianjin Jinneng Investment Company since 2007.Mr. Li has been engaged in power corporate management and corporate investmentfor a long time, and has rich experience in corporate management andinvestment.

Independent Non-executive Directors

Xie SonglinAged 68, graduated from the Department of Dynamics at Shaanxi IndustrialUniversity (now known as Xi'an Jiaotong University) majoring in powergeneration. He is an Engineer, Senior Accountant, Senior Economist andcurrently Consultant of the State Grid Corporation of China. Mr. Xie startedhis career in 1965. He had worked as technician at the Xinjiang Prospecting andDesign Institute for Hydropower; Engineer and then Director of the Hunan YiyangPower Industry Bureau. In 1985, he was appointed Deputy Director of Hunan PowerIndustry Bureau and Deputy Director of the Central China Power ManagementBureau. In 1992, he was appointed as Deputy Director of the Audit Bureau of theMinistry of Energy. In 1993, he was appointed Chief of the Economic AdjustmentDivision of the Ministry of Power. He was the Head of General Office ofMinistry of Power Industry in 1996. In 1997, he was appointed Chief Economistof the State Power Corporation, Chief of the General Management Division of theMinistry of Power. He became Chief Accountant and Head of the Finance andAssets Operation Department of the State Power Corporation in 1999. He becamethe Vice President of the State Power Corporation in June 1999. He has beenConsultant of the State Grid Corporation of China since 2003. Mr. Xie has longbeen engaged in the production and management of the power industry. He hasextensive experience in power generation and management.

Yu Changchun

Aged 58, holds a PhD degree in economics. He is currently Head of the Educationand Research Centre and Professor of Accounting at the Beijing State AccountingInstitute. Mr. Yu taught at the Jilin Institute of Finance and Commerce upongraduation in 1978 and subsequently obtained a master degree in economics fromShanghai Social Science Institute and a PhD degree in economics from TianjianUniversity of Finance and Economics. He was Department Head, Professor andAdvisor to postgraduates at the Department of Accounting at the ChangchunInstitute of Taxation in 1995. He carried out post-doctoral researches in theFinancial and Economics Research Institute at the China Academy of SocialSciences in 1997 and worked with the Beijing State Accounting Institute in1999. Mr. Yu has been engaged in theoretical and practical researches in theareas of Economics and Accounting for many years. A number of scientificresearch topics at the ministry (Provincial) Level were conducted and completedby Mr. Yu and have been awarded for a number of Outstanding Achievements at theMinistry (Provincial) Level. He was granted a specific subsidy from the StateCouncil in 1997.Liu ChaoanAged 54, graduated from the Geological Institute of Jilin University. Mr. Liuis a professor grade senior engineer, currently as Chairman of North ChinaElectric Power Engineering Company Limited of the State Power Corporation. Mr.Liu worked as a technician at the Beijing Power Design Institute in 1980, andsubsequently had been the Professional Section Chief, Deputy Chief andAssistant to Director at the North China Design Institute. He was VicePresident of North China Electric Power Engineering Company Limited of theState Power Corporation since 2000, and he has been the Chairman of North ChinaElectric Power Engineering Company Limited of the State Power Corporation since2006. Mr. Liu has extensive experience in engineering design and geologicalprospecting of the power industry.

Xia Qing

Aged 53, is a graduate of Tsinghua University with a PhD degree in Mechanicaland Electrical Engineering. He is a professor and an advisor to PhD students.He was awarded a PhD degree by Tsinghua University in 1989, with major researchdirection focusing on the power market, power system planning, informationtechnology and power demand forecasts theories. From March 1996 to March 1997,he was a visiting scholar funded by The British Royal Society and was engagedin the research of power markets in the United Kingdom. Mr. Xia has conducted anumber of researches on topics including the power market, power resourcesplanning, power grid planning, power demand forecasts, power regulatory issues,dispatch of energy saving power generation. He has also been involved in powermarket design for the four major regions in the PRC. His current part-time jobsinclude serving as part-time professor at the Party School of the State PowerGrid Company, Consultant to the State Power Grid Trading Centre, ConsultingExpert of Yunnan Power Grid Corporation and Independent Director of Yunnan

WenShan Power Company Limited.Li HengyuanAged 67, graduated from Chengdu University of Technology, majoring inAnalytical Chemistry under the School of Mathematics, Physics and Chemistry. Heis a senior engineer and currently Deputy Secretary-general of All-ChinaEnvironment Federation. Mr. Li participated in the work of Mining andMetallurgical Research Institute under Chinese Academy of Sciences in 1965. Hetook the office of Director of Environmental Protection Bureau of Zigong City,Sichuan Province and then the Chief Director of the Laws and RegulationsDepartment in the State Environmental Protection Administration. Mr. Li hasbecome a part-time professor and guest professor of Jilin University and apart-time professor of Beijing Normal University since 1994. He has been DeputySecretary-general of All-China Environment Federation since 2004. Mr. Li haslong been engaged in environmental protection studies including environmentcapacity and pollution prevention. He has extensive academic knowledge andyears of practical experience in environmental protection. He, through hisresearch results, has won the National Scientific and Technological ProgressAward (Second Class), the Ministerial and Provincial Scientific andTechnological Progress Award (Second Class) and the Ministerial and ProvincialScientific and Technological Progress Award (Third Class), and has presented aconsiderable number of academic papers at international academic conferencesand in national academic journals. Mr. Li has also participated in draftingvarious laws, regulations and codes in relation to environmental protection.

Members of the Supervisory Committee

Qiao Xinyi

Aged 58, graduated from North China Power Institute majoring in thermal powerequipment. He is university educated and a Senior Economist. He is currently amember of the Company's Communist Party Committee, Head of the DisciplinaryDivision and Chairman of the Staff Union of the Company. Mr. Qiao joined NorthChina Power Corporation in 1969. He worked successively as Head of the CadreOffice, Assistant to Manager and Deputy Manager of the Personnel Department ofNorth China Power Corporation, and Party Secretary and Deputy Chief at theQinhuangdao Electric Power Bureau. He has been Deputy Chief Political Engineercum Head of the Corporate Culture Department, Director of the Work AssignmentCommittee, Chairman of the Staff Union, and Head of the Disciplinary Divisionof the Company since February 2000. He has become Chairman of the SupervisoryCommittee of the Company since May 2009. Mr. Qiao has long been engaged in themanagement of power generation companies and has extensive experience in humanresources management and corporate management in power generation companies.

Zhang Xiaoxu

Aged 47, university graduate. He graduated from the Central Communist PartyCollege majoring in economics management and graduated from Liaoning PowerUniversity with specialisation in industrial accounting. He is a senioraccountant and is presently Manager of Financial Department of Tianjin JinnengInvestment Company. Mr. Zhang began his career with First Construction Companyof Fushun City, Liaoning Province in 1982. He served as Accounting Officer inFirst Construction Company of Fushun City in Liaoning Province and wasAccounting Officer and Chief Accountant of Liaoning Power Plant; and DeputyHead and Head of Finance Division, Deputy Chief Accountant, Chief Accountant atLiaoning Nenggang Power Generation Co., Ltd. He was Deputy Manager and Managerof Financial Department of Tianjin Jinneng Investment. Mr. Zhang has long beenengaged in financial management and has extensive practical work experience.

Fu Guoqiang

Aged 47, university graduate, is a senior accountant, CPA. Mr. Fu is the Headof the Finance and Assets Management Department of China Datang Corporation. Hewas the Head of the Finance and Assets Management Department of China DatangCorporation. He was the Head of the Finance and Assets Management Department ofHebei Power Company, Manager of the Finance Department of NCPGC. Mr. Fu hasbeen the Head of the Finance and Assets Management Department of China DatangCorporation since December 2003. Mr. Fu has long been engaged in financemanagement in power system and has extensive practical experience in operationand management.Guan ZhenquanAged 46, graduated from University of Fuzhou majoring in power system. He isuniversity educated and a Senior Economist. He is currently Deputy Director ofthe Human Resources Department of the Company. Mr. Guan joined North ChinaPower Corporation in 1988. He served successively as Deputy Director of thePersonnel and Education Department of Beijing General Power Equipment Plant,Deputy Head of the Administrative Office of Leading Cadres, and Head of theLabour Administrative Office of the Personnel Department at North China PowerCorporation; and Deputy Party Secretary cum Secretary of the DisciplinaryCommittee as well as Chairman of the Staff Union at Tianjin DatangInternational Panshan Power Generation Company Limited. He has served as DeputyHead, Director and Deputy Director of the Human Resources Department of theCompany since March 2002. He has become member of the Supervisory Committee ofthe Company since May 2009. Mr. Guan is familiar with the development andmanagement of human resources in power generation companies and has extensiveexperience in human resources management in power generation companies.

Secretary to the Board

Zhou Gang

Aged 46, an Executive Director and Vice President of the Company.

Senior Management

An Hongguang

Aged 51, graduated from Wuhan University majoring in Administration Science andEngineering with a master degree. He is a senior engineer and currently theVice President of the Company. Mr. An joined North China Power Corporation in1982 and since then held various positions including Deputy Head of theChemical Workshop of Xia Hua Yuan Power Plant, Deputy Head and Head of theChemical Workshop of Dou He Power Plant, Division Chief of the BiotechnologyUnit of Dou He Power Plant, Assistant to Director of Tangshan General PowerPlant, Assistant to Director of Dou He Power Plant, Deputy Manager of theProduction Department of the Company and Director of Zhangjiakou Power Plant.From June 2005 to December 2005, he served as Assistant to President of theCompany. He has become Vice President of the Company since December 2005. Mr.An has more than 20 years' experience in the area of power systems and has beenlong engaged in power plant production and administration management. He iswell experienced in power generation and operation, with specific expertise inproduction safety management of power plants.

Qin Jianming

Aged 47, graduated from North China Electric Power University majoring intechnical economics. He has post graduate qualification and is a seniorengineer. He is currently a Vice President of the Company. Mr. Qin commencedhis career in 1984 with Ministry of Water Resources and Power and had beensuccessively person-in-charge of the Office of the Planning Division of thePower Department, Head of the General Office of Project Construction Bureau ofthe State Power Corporation, Head of the Thermal Power Construction ManagementOffice of the Thermal Power Construction Department, Head of the GeneralManagement Office of Power Construction Department and Deputy Director of theConstruction Management Department of China Datang Corporation. Mr. Qin hasbeen a Vice President of the Company from June 2007 and he has extensiveexperience in power project construction and management.

Liu Lizhi

Aged 44, graduated from Northeast Power Institute majoring in power system andengineering automation. He is a Senior Economist and Senior Engineer withgraduate school education. He is currently a member of the Communist PartyCommittee and Deputy General Manager of the Company. Mr. Liu joined China PowerInformation Research Institute in 1991. In July 1994, he was Deputy Chief ofthe Dynamics and Economics Research Office at the Beijing Power ScientificResearch Institute. He has been working at the Company since September 1999 andhas successively held the positions of Manager of the Planning and DevelopmentDepartment and Manager of the Development and Planning Department of theCompany. He served as General Manager of Hebei Datang International HuazeHydropower Development Company Limited; Director of the Preparation Division ofHebei Yuzhou Energy Multiple Development Company Limited; General Manager ofDatang International Chemical Technology Research Institute Company Limited;and then Secretary to the Communist Party Committee cum General Manager ofInner Mongolia Branch of the Company. He has been Chief Economist of theCompany since December 2005, and Deputy General Manager of the Company sinceMarch 2009. Mr. Liu is familiar with power system project management,investment and financing management. He has extensive experience in capitaloperation and corporate management.

Wang Zhenbiao

Aged 46, graduated from North China Power Institute majoring in thermaldynamics. He is a Senior Engineer with graduate school education. He iscurrently a member of the Communist Party Committee and Deputy General Managerof the Company. Mr. Wang joined Beijing Power Construction Company in 1984. Hesuccessively held the positions of Deputy Chief and Engineer Director of theProduction and Technology Department of North China Power Corporation, and thenChief Engineer of Inner Mongolia Datang International Tuoketuo Power GenerationCompany Limited. He was Deputy Manager and Manager of the Engineering andConstruction Department of the Company since February 2001, and then served asDeputy Chief Engineer of the Company. He has been Chief Engineer of the Companysince September 2007, and Deputy General Manager of the Company since March2009. Mr. Wang is familiar with the management of power system infrastructureconstruction as well as the management of production and technology. He hasextensive experience in power engineering and construction as well as corporatemanagement.Wang XianzhouAged 56, graduated from Beijing Broadcast and Television University majoring inindustrial statistics. He is a senior accountant and the Chief FinancialOfficer of the Company. Mr. Wang joined North China Power Corporation in 1970and had held various positions including Head of the Financial Department ofXia Hua Yuan Power Plant and Deputy Chief Accountant and Head of the FinancialDivision of Zhang Jia Kou Power Plant. Since 1995, Mr. Wang had held variouspositions including Deputy Financial Manager and Financial Manager of NCPGC,Financial Manager and Chief Accountant of the Company. He has been ChiefFinancial Officer of the Company since August 2000. Mr. Wang has acquiredextensive experience in the financial management of power companies from hislongstanding focus in this area.

Management of Investor Relations

During 2009, the Company conducted active and sincere communication withinvestors at large and analysts by various channels including resultspresentation, overseas roadshows, roadshow for bonds issue, reverse roadshows,investor forums, company visits, telephone conferences as well as answerenquiry phone calls and reply to emails. Among the meetings, the Company metanalysts and fund managers 414 man-times through results presentations andoverseas roadshows; met analysts and fund managers 40 man-times at roadshow forbonds issue; met analysts and fund managers 42 man-times at reverse roadshows;met analysts and fund managers 742 man-times at investor forums; and metanalysts and fund managers 386 man-times through company visits and telephoneconference.

Investor Relations Activities Conducted in 2009

Month Information of Investor Being a No. of No. of Relations Activities Speaker at One-on-one People met the Conference Meeting

January Deutsche Bank Access

China Conference Yes 12 75 UBS 9th Greater China Conference Yes 14 83

February Daiwa Investment Conference Yes 15

70 March Annual Results Presentation Yes ― 106 April Annual Results Domestic Roadshows No 22 85 Annual Results Overseas Roadshows No 25 49May Macquarie Investment Forum No 8 35June JP Morgan China Conference Yes 16 95 Company's Reverse Roadshows Yes ― 42 UBS Investment Forum No 7 26 July Nomura Investment Forum Yes 13 78 BNP China Power Corporate Day No 8 25 August Company's Roadshow for Bonds Issue No 8 40 Interim Results Presentation Yes ― 101 Interim Results Domestic Roadshows No 17 47 Interim Results Overseas Roadshows No 9 26

September CLSA 16th Asia Investment Conference No 18

65

October Citi Annual Investor Conference No 9

36

BNP Investor Annual Conference No 7

23

November Bank of America Merrill Lynch No 16

40 China Investment Summit Morgan Stanley Asia Pacific Summit No 17 46

December Citic Securities Annual

Strategy Conference Yes 5

45

1. What is the Company's view on the nation's power supply and demand in 2010?

A.: 2010 is a year with the most complicated international and domestic economic conditions. According to the forecasts by the China Electricity Council, the nation's power supply and demand will be characterised by the following:

i. It is anticipated that newly-added installed capacity will remain relativelystrong with a further growth in the supply capacity. In 2010, 85,000MW ofinstalled capacity is expected to be added to the nation's infrastructure forthe whole year: This includes over 15,000MW of hydropower; 55,000MW ofcoal-fired power; 1,080MW of nuclear power; 13,000MW of wind power; and200,000kW of solar photovoltaic power. It is anticipated that by the end of2010, the nationwide installed capacity of power generation will be around950,000MW.ii. It is anticipated that demand will continue to rise. Power consumption forthe whole year will grow by 9% year-on-year to approximately 3,970 billion kWh.Given the base effect for each month in 2009, total social power consumptionwill follow an overall trend of "from high to low" in 2010. The growth ratewill exceed 10% in the first half but will gradually decline in the secondhalf.iii. The overall power supply and demand is expected to be in equilibrium.Utilisation hours of power generation equipment for the full year is estimatedto be approximately 4,500 hours, basically maintaining the same level as 2009or experiencing a slight decline. Thermal coal, water resources and climatewill be the most important factors affecting power supply and power generationbalance in certain regions.

2. What is the Company's estimate of coal procurement in 2010 and what is its assessment towards the coal demand and supply situation during the year?

A.: According to the Company's power generation plan for 2010, it is estimatedthat the Company will consume approximately 78 million tonnes of coal for thefull year. The Company has entered into key coal contracts at an averageincrease in coal price of approximately 9%. The remaining coal requirementapart from key contract coal will be satisfied through procurement in theinternational and domestic markets.The Company anticipates that coal supply and demand will be basically balancedin 2010. Spot coal prices in the domestic market will decline as compared tothe beginning of the year but will still be higher than key contract prices.The decline in coastal coal prices will be greater than those of direct coaland mine-mouth coal.

3. What are the Company's measures in response to the continuously rising debt-to-assets ratio?

A.: As at 31 December 2009, the Company's debt-to-assets ratio on aconsolidated basis was 82.17%, representing an increase of 1.64 percentagepoints as compared to the end of 2008. In response to the continuously risingdebt-to-assets ratio, the Company has been actively pursuing the issuance ofadditional capital. As at 31 December 2009, the Company's non-public offer planfor the issuance of not exceeding 700 million A shares had obtainedunconditional approval from the CSRC. The Company successfully completed anon-public offer of A shares in March 2010 and RMB3.248 billion of proceeds wassubsequently raised. The above plans have effectively reduced the Company'sdebt-to-assets ratio.

4. What are the targets at various stages in the Company's development of the coal chemical business?

A.: As at the end of 2009, the Company obtained approvals from (or submittedfiling to) the government for the Duolun Coal Chemical Project and the KeqiCoal-based Natural Gas Project which have formally commenced construction. TheDuolun Coal Chemical Project had entered into the full trial-run stage sincethe beginning of 2009. The Company planned to complete the full-system trialrun in 2010 by linking all technical processes so as to produce polypropylenesmoothly as the end product. The Keqi Coal-based Natural Gas Project (withannual production of 4 billion cubic metres) commenced construction in August2009. The first production line is expected to commence operation in 2012 andfull production will be achieved by 2014.

In addition, the Fuxin Coal-based Natural Gas Project obtained formal approval from the NDRC in March 2010 and has commenced construction.

5. Has the Company made any new adjustments to its development approach?

A.: In order to adapt to the changing market and regulatory environments so asto assure the Company's sustainable development, the Company appropriatelyadjusted its development approach from mainly relying on "new construction" toboth "acquisitions and new construction". The Company will capture the numerousacquisition opportunities available amidst the current adjustment process ofthe power industry. By pursuing the development strategy of "focusing onpursuing the power generation business as its core developmentwhilstcomplementing with synergistic diversifications" and through the variousapproaches of capital raising, acquisitions of equity interests andrestructuring of assets, the Company will continue to expand its scale ofoperation and enhance its profitability.

6. What are the major strategic targets of the Company in 2010?

A: 2010 is the final year for the first stage of the development strategy of"focusing on pursuing the power generation business as its core developmentwhilst complementing with synergistic diversifications". The major strategictargets in 2010 include continuous development of power-related assets; theattainment of certain operating scale in coal and coal-to-chemical productions;the initial establishment of the logistics assets chain; a full roll-out of theassets deployment of diversified businesses, with a gradually rationalizedassets structure; and the contribution of profits from non-power assets to theoverall operating results of the Company for the first time.

Risk Management

The major risks posed to the Company in 2009 and the coping measures are summarised as follows:

(1) Risks related to operations

At present, the Company is principally engaged in the power generation businesscomprising mainly coal-fired power generation. Most of the Company's generatingunits are thermal power generating units. On the one hand, there is a riskrelated to its single power source because the major raw material is fuel coal.On the other hand, there is a risk related to its by-and-large single businessbecause the revenue of the principal business is derived from power generation.If the fuel market or the supply and demand in the electricity marketfluctuates substantially, or if market competition intensifies, having a singlepower source and a single business portfolio will pose a disadvantageous impactupon the Company's operating results.In response to the risk associated with the single power source portfolio, theCompany applied various initiatives to increase the proportion of hydropower ininstalled capacity to further diversify the power source mix, thus minimisingthe risk in fuel supply. In addition to the hydropower plants in Huaze,Lixianjiang Basin, Nalan, Wenshan and Pengshui which have been put intooperation, the Company is planning for the construction of hydropower projectsin Wulong, Ganzi and other places. Upon completion of these projects, theinstalled capacity under management of all hydropower projects will represent20-25% of the installed capacity under management of the Company.Therefore, the risk associated with its single power source will be furtherminimised. Meanwhile, the Company's plan to develop nuclear power and windpower will further optimise its power source mix.In response to the risk associated with its single business portfolio, theCompany strived to implement the diversification strategy. On the one hand, theCompany has been actively leveraging the relevant national policies and hasbeen focusing on developing the power market in the western region which enjoysthe policy advantages. On the other hand, it strived to push forward expansionprogrammes in coal, chemical and railway projects, as well as relevant projectsof upstream and downstream industries in relation to electricity, to furtherassure a sustainable development of the Company.

(2) Risks related to safe production

There is a possibility of having production safety-related accidents in thepower industry. Any major production-related accidents will cause substantiallosses to a company and an adverse effect on the society. The Company adoptedvarious initiatives to minimise risks associated with safe production. Forexample, the Company took the management of safe production very seriously bystrengthening the awareness of safe production in personal safety, equipmentsafety, traffic safety, social safety and so forth, by implementing anaccountability system for safe production, and by improving safe productionskills and measures. The Company revised and published the "Rules of DatangInternational Power Generation Co., Ltd. Governing the Accountability Systemfor Safe Production" and the "Rules of Datang International Power GenerationCo., Ltd. Governing Safe Production-related Critical Incidents"; the Company'ssubordinate units signed a "Safe Production Accountability Letter" at thebeginning of each year and review the extent they have accomplished in theLetter at the end of each year, and present a written report to the Companywhich will assess the extent to which the indicators are achieved and putforward its opinions on the assessment of the annual Safe ProductionAccountability Letter.

(3) Risks related to environmental protection

Waste gases, waste water, ashes and other pollutants are discharged during theprocess of thermal power generation. On the one hand, this will cause pollutionto the surrounding environment. On the other hand, the Company needs to pay thesewage charges arising from this as its operating costs. These sewage expensesare likely to increase further in future with the State's increasing efforts tolevy sewage charges and the public's growing emphasis on environmentalprotection. In response to the risk related to environmental protection, theCompany has taken a number of positive coping measures as follows:The Company arranged for funding in a positive manner and made full use of thenational sewage charges return policy and tariff compensation policy. Theinstallation rate of desulphurisation facilities reached 100% in early 2009,and denitrification renovation projects were gradually carried out to existinggenerating units. The Company strived to reduce emissions percentages byimplementing a variety of technical means. For example, for all new projects,high capacity, high performance and low emission desulphurisation units wereused and the percentage of low-sulphur coal was increased in the fuel mix; theCompany increased the percentage of hydropower units in generation assets fornew projects, and aggressively studied the possibility of the development ofother clean energy. In 2009, the Company's monitoring and audit departmentcontinued to carry out special supervision and inspection of energyconservation and emissions reduction in accordance with the State'senvironmental policies and the Company's environmental requirements.

(4) Risks related to resources supply

The major raw material used by the Company is coal. Increased coal prices willpush up the costs of the Company's principal business, which will directlyaffect the Company's operating results. With respect to the supply of coal forpower generation in 2009, the supply and demand in the nationwide market forcoal used for power generation remained basically stable, with prices stayinghigh. The delay in signing key contracts resulted in a short supply of thermalcoal to the Company during certain periods and in certain regions. The declinein the quality of coal and the varying degrees of rises in sea freight andrailway freight had a substantial impact on the Company's production andoperations. To this end, the Company adopted a number of coping measures tomitigate the impact of cost increases. For example, the fuel coal mix wasadjusted; the Company established long-term partnerships and a communicationmechanism of mutual trust and understanding with major coal suppliers, whichhad kept procurement prices and purchase volume of coal relatively stabilised;the Company strengthened the cooperation with coal enterprises through equityinvestments and other methods; the Company gained a direct access to the coalproduction industry by, among others, the acquisition of the exploration rightin East Unit 2 of Shengli Coal Mine in Xilinhote; the Company carried outenergy-saving and consumption reduction technological upgrades, whilestrengthening the monitoring and management of technical and economicindicators for continuously reducing the consumption of coal in power supply;the Company controlled cost increases by strengthening the management of safeproduction, rationalising the arrangements for overhauling generating units andother measures; and the Company closely monitored the State's introduction ofpolicies and regulations on coal, and capitalised on these policies andregulations.

(5) Risks related to capital availability

The power generation industry is a capital-intensive industry. The constructionof power plants involves substantial investments and long construction periods.The expansion of the Company's production and business scale, the upgrade ofequipment and technologies and so forth require the commitment of a substantialamount of capital, and accordingly the business development of the Company willrequire funding on an ongoing basis. Any major turmoil in the domestic oroverseas financial market or any change in banks' lending rates unfavourable tothe Company will affect the Company's financing capacity, resulting in a riskrelated to capital availability. In response to this risk, the Company hastaken the following coping measures:The Company reduced its operating costs through a number of measures:maintained a good track record in project development, construction andoperation; and raised the quality of assets on an ongoing basis against thoseof the competitors in the same industry through a number of internal managementmeasures. These measures have made the Company's profit status perform betterthan the average level and generate steady cash flow, thus enabling the Companyto maintain and enhance its good credit standing domestically and abroad, andensuring that internationally well-known rating agencies as well as domesticand foreign banks will grant the Company a higher credit line to assure itsdebt financing capability.With respect to the upgrade of production equipment and technologies, theCompany reviewed technological upgrade proposals at each level, with emphasislargely placed on safety, energy conservation and environmental protectionupgrade projects. For each batch of projects, an analysis of the input andoutput must be carried out to improve the overall reliability of equipment andto reduce the amount of investment per kilowatt committed to technologicalupgrade.With respect to capital management, the Company has been managing the overallraising and utilisation of funds with cash flow control. Through the managementof the capital budget on cash inflows and expenditures of its subsidiaries andplants, the Company strictly controlled the utilisation of funds, enabling itto truly "enhance capital budget management, implement measures for budgetmanagement, manage and make good use of every penny, and improve theoperational efficiency of funds".

The Company has also taken a number of financing methods and channels, such as equity financing and external debt financing, to raise funds to assure its scale development.

Corporate Governance Report

During 2009, the Company fully complied with the principles as set out in theCode on Corporate Governance Practices in Appendix 14 to the Rules Governingthe Listing of Securities (the "Listing Rules") on The Stock Exchange of HongKong Limited (the "Hong Kong Stock Exchange") and reached or even exceeded thebest recommended practices in the Code on Corporate Governance Practices incertain aspects. The corporate governance condition of the Company is herebyreported as follows:

Shareholders and General Meeting

For years, apart from committing itself to the operation and expansion of itsbusinesses in order to attain appropriate returns for shareholders, the Companyalso provides details on the Company's operations management and relevantinformation to shareholders in a timely and accurate manner through a varietyof channels and methods, including: convening and holding general meetings instrict compliance with the Company's articles of association (the "Articles ofAssociation"), the Listing Rules and relevant regulations stipulated by theSecurities and Futures Commission (the "SFC"), and timely announcing relevantinformation to shareholders on an irregular basis according to the requirementsof the domestic or international listing rules. During the reporting period,the Company held a total of three general meetings and a professional lawyerwas invited to each general meeting as a witness to ensure all shareholderswere treated equally and exercised their rights adequately.The Company has also established specific divisions to assign specific staff tohandle relevant work and receive visitors, with contact numbers published toanswer phone enquiries at any time. In addition, the Company's website has beenset up to provide updates and past results on the Company, as well as themanagement organisation of the Company, so as to facilitate a comprehensiveunderstanding of the Company by shareholders and investors.

Directors and the Board

Pursuant to the Articles of Association, the board of the Company (the "Board")comprises 15 directors (the "Directors"), including five independent Directors.Members of the Board are equipped with various experience, ability, expertiseand judgment (see the profiles of the members of the Board as set out in thisannual report for details) appropriate for the Board. Directors of the Companyconsist of experts in power-related technology and management, experts infinance and scholars. Each of them has extensive experience and acumen and isopen-minded. The Directors fully understood their responsibilities, powers andobligations, and managed to discharge their duties with truthfulness, integrityand diligence. In order to enhance the decision-making mechanism, increase thescientific nature of decision-making and improve the quality of substantialdecisions, the Board has established three specialised committees, namely theAudit Committee, the Strategy and Development Committee and the Remunerationand Appraisal Committee, with detailed working rules devised for the respectivecommittees. The convenors of the three specialised committees are independentDirectors. In particular, independent Directors make up a majority in the AuditCommittee and the Remuneration and Appraisal Committee.During the reporting period, the Board held 11 meetings. The convening andvoting procedures of the Board meetings complied with the regulationsstipulated by the Articles of Association and the "Rules of Proceedings forBoard Meetings". IndependentExecutive Attendance Non-executive Attendance Non-executive Attendance Directors (%) Directors (%) Directors (%)Cao Jingshan 100 Zhai Ruoyu 100 Xie Songlin 100(Vice Chairman) (Chairman) Zhou Gang 100 Hu Shengmu 100 Yu Changchun 100 Fang Qinghai 100 Liu Chaoan 100 Liu Haixia 100 Xia Qing 100 Guan Tiangang 100 Li Hengyuan 100 Su Tiegang 100 Ye Yonghui 100 Li Gengsheng 100During the reporting period, the independent Directors and members of the AuditCommittee of the Board were engaged in the preparation of the Company's 2009annual report. The Company held an Audit Committee meeting and an independentDirectors' meeting, in which the independent Directors and the Audit Committeemembers communicated with the Company's senior management and accountantsregarding the Company's 2009 annual results and financial statements and thework of the accountants, forming relevant opinions and resolutions as a result.The Remuneration and Appraisal Committee of the Board conducted assessment onthe discharge of duties and the completion of annual results by the Company'sDirectors, supervisors and senior management in accordance with the relevantrequirements of the "Work Regulations for the Remuneration Committee of theBoard" of the Company, and made suggestions on the remuneration management ofDirectors, supervisors and senior management for 2009.The Strategy and Development Committee of the Board reviewed the progress ofthe Company's investment projects and the Company's development strategyframework in accordance with the relevant requirements of the "Work Regulationsfor the Strategy and Development Committee" of the Company and made suggestionson the Company's future development.The Company has adopted a code of conduct regarding Directors' securitiestransactions on terms no less exacting than the required standards set out inthe "Model Code for Securities Transactions by Directors of Listed Issuer" (the"Model Code") as set out in Appendix 10 to the Listing Rules.

Having made specific enquiry of all Directors, the Directors have confirmed that they have complied with the Model Code in 2009.

Supervisors and the Supervisory Committee

The Company's Supervisory Committee (the "Supervisory Committee") comprisesfour members, of whom two are supervisors representing the staff. Themembership and composition of the Supervisory Committee comply with therequirements of the laws and regulations. Supervisory Committee members shallexercise their supervisory duty as mandated by the laws, regulations, theArticles of Association and the rights granted by the general meeting, andshall be accountable to the general meeting in order to ensure thatshareholders' interests, the Company's interests and the staff's lawfulinterests are not violated. During the reporting period, the SupervisoryCommittee held five meetings and attended all Board meetings and AuditCommittee meetings. Through various channels and methods, the SupervisoryCommittee carried out regular inspections on the Company's finances andsubstantial matters, as well as supervising the lawfulness and compliance ofthe Directors, the President and other senior management members in dischargingtheir duties.

Chairman and Chief Executive Officer

The positions of Chairman (chairman of the Board) and President of the Companyare held by two different persons, respectively. Mr. Zhai Ruoyu and Mr. CaoJingshan are the Chairman and the President of the Company, respectively. Thepower of the Chairman and the President is expressly provided in the Articlesof Association. The main duties of the Chairman include presiding over thegeneral meetings, convening and presiding over Board meetings and reviewing thestatus of the implementation of the Board's resolutions. The main duties of thePresident include: (1) to take charge of the production and operationmanagement of the Company, and coordinate the implementation of the Boardresolutions; (2) to coordinate the implementation of the Company's annualoperation plans and investment proposals; (3) to formulate the plan forestablishing the Company's internal management institutions; (4) to lay downthe Company's fundamental management system; (5) to formulate the fundamentalconstitution of the Company; (6) to propose the appointments or dismissals ofthe Vice President and the person in charge of finance; and (7) to appoint ordismiss other officers who are not appointed or dismissed by the Board.

Non-executive Directors

The Company has a total of 13 non-executive Directors. It is provided in theArticles of Association that the term of appointment of Directors (includingnon-executive Directors) shall not exceed three years and Directors areeligible for re-election and re-appointment. Any new Director will take officeonly after being elected and approved at the general meeting.As stipulated by the regulations of the State's supervisory authorities, theconsecutive terms of services of independent non-executive Directors (i.e.independent Directors) shall not exceed six years. The Articles of Associationhas not expressly provided that the Directors would retire in rotation onceevery three years.

Remuneration of Directors

During the Year, the Company and the remunerations of the executive Directorsand senior management of the Company followed a salary system primarily basedon positional salary. In accordance with the decision of the Board, the annualremuneration for each independent non-executive Director was RMB60,000 (aftertax). The remunerations for other non-executive Directors of the Company weredetermined by their respective salary systems as provided and paid by theirrespective affiliated entities. The Board has established the Remuneration andAppraisal Committee, which comprises five Directors with independent Directorsmaking up more than half of the membership.The major duties of the Remuneration and Appraisal Committee include: toexamine the criteria for the appraisal of Directors and managers; to conductthe appraisal and make recommendations; and to examine and review theremuneration policy and plans of the Directors and senior management (as theCompany did not enter into service contracts with executive Directors, theduties of the Remuneration and Appraisal Committee did not include the approvalof the terms for the service contracts of executive Directors). During theYear, the Remuneration and Appraisal Committee held a meeting to review theperformance and level of remuneration for executive Directors and seniormanagement of the Company in 2008. The composition and level of remunerationwere disclosed in this annual report. The attendance of the committee membersat meetings is as follows: AttendanceConvenor (Chairman):Liu Chaoan (Independent non-executive Director) 100%

Members:

Xia Qing

(Independent non-executive Director) 100%

Li Hengyuan

(Independent non-executive Director) 100%Hu Shengmu (Non-executive Director) 100%Zhou Gang (Executive Director) 100%

Nomination of Directors

It is provided in the Articles of Association that Directors are elected andformed by the general meeting of the Company with each term of appointment notexceeding three years and are eligible for re-election and re-appointment. TheBoard has yet to set up a nomination committee. Any change to the compositionof the Board will be initiated through the Board, for which the Board willpublish biographies of candidates recommended before the general meeting on thebasis of recommendations of the shareholders and a review of the candidates'experience, so that all shareholders will be fully aware of the background ofthe candidates and exercise the power of the shareholders to elect theDirectors.

Auditor's Remuneration

During the Year, the audit service fee payable to PricewaterhouseCoopers ZhongTian CPAs Limited Company and PricewaterhouseCoopers, the Company's domesticand international auditors, amounted to approximately RMB18.311 million; andnon-auditing fee amounted to approximately RMB1.5 million, mainly for preparinginternal control monitoring report to the Company.

The Audit Committee

The Audit Committee under the Board comprises five Directors, of whom all arenon-executive Directors, among whom three are independent Directors. Majorduties of the Audit Committee include: to supervise the Company's internalaudit system and its implementation; to facilitate the communication betweeninternal and external audit parties; to review the Company's financialinformation and periodic disclosures; to review the Company's internal controlsystem; and to propose the appointment or replacement of external audit firms.The Company's Directors, supervisors, chief financial manager, other seniormanagement members and external auditors of the Company are invited to attendthe Audit Committee meetings.During 2009, the Audit Committee held two meetings. Conscientious reviews ofthe Company's interim and annual results and related financial matters as wellas the Company's internal control system were conducted. It also duly assessedthe auditors' work. The Audit Committee is of the view that the Company'sinternal control systems were effectively implemented, have achievedsignificant results and have effectively controlled the production andoperation risks of the Company.

During the Year, the attendance by the Audit Committee members at the committee's meetings is as follows:

AttendanceConvenor (Chairman):Yu Changchun

(Independent non-executive Director,

financial management expert) 100%

Members:

Xia Qing

(Independent non-executive Director) 100%

Li Hengyuan

(Independent non-executive Director) 100%Ye Yonghui (Non-executive Director) 100%Guan Tiangang (Non-executive Director) 50%

Internal Control of the Company

From the perspectives of business management, job functions management and jobpositions management, the Company established basic corporate managementsystems such as the system governing the usage of chops, notes management,budget management, asset management, quality management, duties authorizationmanagement, regular communication management and information disclosure.

Specific content includes: segregation of duties control; accounting control; asset safeguard control; budget control; operating analysis control; and performance evaluation control.

As to organisational structure, the Company has established the Supervision andAuditing Department, with a comprehensive and effectively operating internalaudit system. During the reporting period, a focus was put on theimplementation of the internal control with regard to the Company's internalaudit work with major inspections conducted on assets, materials and suppliesmanagement, contract management and connected transactions. Reports on theinspections and supervision of the Company's internal control are submitted tothe Audit Committee of the Board on a regular basis. Meanwhile, severalspecialised task forces on aspects such as financial budgeting, bidding andtenders, and emergency incidents were established at the management level toassist the Company's President to make major decisions and to deviserisk-prevention proposals in daily operations. Implementation of the Company'svarious management systems and an effective operation of the decision-makingsystem facilitated by the Company's specialised committees serve a function ofrisk-prevention and assure the normal production and operation of the Company.

The Board has conducted a review of the effectiveness of the internal control system of the Company and its subsidiaries during the reporting period.

Pursuant to the relevant requirements of the Shanghai Stock Exchange, the Boardpublished the "Self-assessment Report on the Company's Internal Control". Fordetails, please refer to the website of the Shanghai Stock Exchange (http://www.sse.com.cn ).Report of the Directors

The Directors are pleased to present the audited results of the Company for the year ended 31 December 2009.

Listing and Issue of SharesThe Company's H shares were listed on the Hong Kong Stock Exchange and theLondon Stock Exchange Limited since 21 March 1997. On 9 September 2003, theCompany issued 5-year US Dollar convertible bond of US$153.8 million, whichwere listed on the Luxembourg Stock Exchange, at 0.75% interest rate per annumand a conversion premium of 30%. The Company's A shares were listed on theShanghai Stock Exchange since 20 December 2006. Pursuant to the resolutionpassed at the 2006 annual general meeting, the Company implemented the sharecapital expansion proposal by utilising its capital reserve fund to issue 10bonus shares for every 10 shares held by the shareholders of the Company in2007. Due to such changes, as at 31 December 2009, the total number of sharesof the Company was 11,780,037,578 shares. Apart from that, the Company did notissue any new shares in 2009.

Performance of the Company's H shares during 2009:

Closing price of H shares

as at 31 December 2009 HK$3.36

Highest trading price of H shares between

1 January and 31 December 2009 HK$5.09

Lowest trading price of H shares between

1 January and 31 December 2009 HK$3.19

Total number of H shares traded

between 1 January and

31 December 2009 3.59 billion shares

Performance of the Company's A shares during 2009:

Closing price of A shares

as at 31 December 2009 RMB9.05

Highest trading price of A shares between

1 January and 31 December 2009 RMB11.10

Lowest trading price of A shares between

1 January and 31 December 2009 RMB6.51

Total number of A shares traded

between 1 January and 31 December 2009 7.55 billion sharesPublic FloatBased on information that is publicly available to the Company and within theknowledge of the Directors as at the latest practicable date prior to the issueof the annual report, the Company confirms that the public float of theCompany's H shares and A shares has complied with the requirements under theListing Rules.Accounts

The Company and its subsidiaries' audited results for the year ended 31 December 2009 are set out in the Consolidated Statement of Comprehensive Income. The financial position of the Company and its subsidiaries as at 31 December 2009 is set out in the Balance Sheets.

The Company and its subsidiaries' consolidated cash flows for the year ended 31 December 2009 are set out in the Consolidated Cash Flow Statement.

Principal Businesses

The Company is principally engaged in the development and operation of powerplants, the sale of electricity and thermal power, the repair and testing ofpower equipment, power related technical services, the sale of coal and theproduction and sale of chemical products.

Major Suppliers and Customers

The percentage of purchases and sales attributable to the Company's suppliers and customers for the Year are as follows:

2009 2008Purchases The largest supplier 18% 11% Top five suppliers 35% 34%Sales The largest customer 36% 43% Top five customers 70% 83%To the knowledge of the Directors, none of the Directors, supervisors, theirrespective associates or shareholders (owning 5% or more of the Company'sissued share capital of the same class) owned any direct or indirect interestin the Company's suppliers and customers mentioned above during the Year.

Subsidiaries, Jointly Controlled Entities and Associates

Details of subsidiaries, jointly controlled entities and associates of the Company are set out in Notes 7, 8 and 9 to the Financial Statements.

Dividend, Earnings per Share

The Board recommended the distribution of proposed dividend amounting to thetotal amount of approximately RMB861.703 million. Based on the Company's totalshare capital of 12,310,037,578 shares as at 19 April 2010, the proposeddividend amounted to RMB0.07 per share (tax exclusive) for the Year. Dividendsto be distributed to domestic shareholders will be declared in and paid by RMB,while those to be distributed to foreign shareholders will be declared in RMBbut paid in Hong Kong dollar. The Hong Kong dollar exchange rate for thepurpose of dividends payment shall be based on the average of the closing ratesof the Hong Kong dollar/RMB exchange rates quoted by the People's Bank of Chinaon each business day within the week immediately prior to payment.

Details of dividends and earnings per share are set out in Notes 38 and 37 to the Financial Statements, respectively.

Reserves

Movements in reserves during the Year are set out in Consolidated Statement of Changes in Equity and Note 21 to the Financial Statements, among which distributable reserves attributable to the shareholders amounted to approximately RMB9.591 billion.

Property, Plant and Equipment

Details of movements in property, plant and equipment during the Year are set out in Note 6 to the Financial Statements.

Donation

During the Year, the Company and its subsidiaries have made charity and relief donations of approximately RMB2.25 million.

Share Capital

As at 31 December 2009, the total share capital of the Company amounted to11,780,037,578 shares, divided into 11,780,037,578 shares carrying a nominalvalue of RMB 1.00 each. Movements in share capital during the Year are set outin Note 20 to the Financial Statements.

Share Capital Structure

As at 31 December 2009, the total number of shares issued by the Company was11,780,037,578. The Company's shareholders were China Datang Corporation,Beijing Energy Investment (Group) Company, Hebei Construction InvestmentCompany, Tianjin Jinneng Investment Company, other holders of domestic sharesand foreign holders of H shares, holding 3,959,241,160 A shares, 1,293,838,209A shares, 1,299,872,927 A shares, 1,212,012,600 A shares, 699,395,104 A sharesand 3,315,677,578 H shares, respectively, representing 33.61%, 10.98%, 11.03%,10.29%, 5.94% and 28.15%, respectively, of the issued share capital of theCompany.Among the H shares, China Datang Corporation's wholly-owned subsidiary, CDCOverseas Investment Company Limited, held 234,680,000 H shares, and thereforeChina Datang Corporation and CDC Overseas Investment Company Limited held atotal of 4,193,921,160 shares in the Company, representing 35.60% of the totalshare capital of the Company as at 31 December 2009.

Number of Shareholders

Details of the shareholders as recorded in the register of members of the Company as at 31 December 2009 were as follows:

Total number of shareholders 249,793Holders of domestic shares 249,222Holders of H shares 571

Substantial Shareholders of the Company

As far as the Directors of the Company are aware, as at 31 December 2009, the interests or short positions of the person or entities in the shares or underlying shares of the Company as recorded in the register required to be kept under section 336 of the Securities and Futures Ordinance (the "SFO") (Chapter 571 of the Law of Hong Kong), were as follows:

Percentage Percentage Percentage to total to total to total issued share issued A issued HName of Class of No. of capital of shares of shares ofShareholder shares shares held the Company the Company the Company (%) (%)

(%)

China Datang A shares 3,959,241,160 33.61 46.78

-

Corporation

(Note 1) H shares 234,680,000(L) 1.99(L) - 7.08(L)Beijing Energy Investment (Group) Company Limited (Note 2) A shares 1,293,838,209 10.98 15.29 - *Hebei Construction Investment Company (Note 3) A shares 1,299,872,927 11.03 15.36 -Tianjin Jinneng Investment Company (Note 4) A shares 1,212,012,600 10.29 14.32 -Blackrock,Inc. H shares 280,516,802(L) 2.38(L)

8.46(L)

13,368,000(S) 0.11(S)

0.40(S)

Morgan Stanley H shares 182,119,188(L) 1.55(L) 5.49(L) 169,931,771(S) 1.44(S) 5.13(S)

(L) = Long positions (S) = Short positions (P) = Lending pool

* Hebei Construction Investment Company has been renamed as

Hebei Construction Investment (Group) Company Limited

Notes:

(1) Mr. Zhai Ruoyu, Mr. Hu Shengmu and Mr. Fang Qinghai, all non-executive

Directors, are employees of China Datang Corporation.

(2) Mr. Liu Haixia and Ms. Guan Tiangang, both non-executive Directors,

are employees of Beijing Energy Investment (Group) Company Limited.

(3) Mr. Su Tiegang and Mr. Ye Yonghui, both non-executive Directors, are

employees of Hebei Construction Investment Company.

(4) Mr. Li Gengsheng, a non-executive Director, is an employee of Tianjin

Jinneng Investment Company.

Save as disclosed above, as far as the Directors are aware, as at 31 December2009, there is no person holding interests or short positions in the shares orunderlying shares of the Company which required to make disclosure inaccordance with the requirements of the SFO.

Interests of Directors and Supervisors in Share Capital

As at 31 December 2009, Mr. Fang Qinghai, a non-executive Director of theCompany, owned 24,000 A shares of the Company. Apart from this, none of theDirectors, supervisors and chief executives of the Company or their respectiveassociates had any interests and short positions in the shares, underlyingshares or debentures of the Company or any of its associated corporation (asdefined in the SFO) that required to notify the Company and the Hong Kong StockExchange pursuant to Divisions 7 and 8 of Part XV of the SFO; or required to berecorded in the register mentioned in the SFO pursuant to section 352 of theSFO or otherwise required to notify the Company and the Hong Kong StockExchange pursuant to the Model Code.

Directors' Service Contracts

As at 31 December 2009, the Company has not entered into any service contracts with its executive Directors.

Interests of Directors and Supervisors in Contracts

No contracts of significance in relation to the Company's business to which theCompany or any of its subsidiaries was a party, and in which any Director orsupervisor had a material interest, either directly or indirectly, subsisted atthe end of the Year or during the Year.

Directors and Supervisors' Benefits from Rights to Acquire Shares or Debentures

No arrangements were made by the Company or its subsidiaries at any time duringthe Year for any Director or supervisor to acquire any shares in or debenturesof the Company or any of its subsidiaries.

Interests of Substantial Shareholders in Contracts

Save as disclosed in this annual report, none of the Company or its subsidiaries have entered into any material contracts or material service contracts with the Company's substantial shareholders or its subsidiaries.

Highest Paid Individuals

During the Year, a salary system revolving positional salary was adopted forthe Company's Directors, supervisors and senior management, and appraisals werecarried out in accordance with the three accountability appraisal managementsystems. The Remuneration and Appraisal Committee assessed such person'sperformance and remuneration level.

All of the highest paid individuals of the Company during the Year include Directors, supervisors and senior management staff. Details of their remuneration are set out in Note 36 to the Financial Statements.

Purchase, Sale or Redemption of the Company's Listed Securities

There was no purchase, sale or redemption of the Company's listed securities by the Company or its subsidiaries during the Year.

Bank Borrowings, Overdrafts and Other Borrowings

Apart from the loans from China Datang Corporation Finance Company Limited,short-term loans from banks, other short-term loans, long-term loans frombanks, other long-term loans and loans from shareholders as set out in Notes 22and 27 to the Financial Statements, there were no other loans of the Companyand its subsidiaries as at 31 December 2009.

Medium-term Notes, Corporate Bonds

In March 2009, the Company completed the issue of the first tranche of the 2009medium-term notes. The principal amount was RMB3 billion with a term of issueof five years. The nominal value of the medium-term notes was RMB100 and thefixed annual coupon interest rate was 4.10% per annum. In August, the Companyissued corporate bonds of RMB3 billion, carrying a fixed annual coupon interestrate of 5.00% with a term of 10 years.

Pre-emptive Rights

There are no provisions for pre-emptive rights under the Articles of Association and applicable PRC Laws that require the Company to offer new shares to the existing shareholders in proportion to their shareholding.

Connected Transactions

During the Year, the Company or its subsidiaries performed the followingconnected transactions (as defined in Chapter 14A of the Listing Rules) withits connected parties as defined by the Listing Rules, and such transactionswere in compliance with the requirements on connected transactions underChapter 14A of the Listing Rules. Transaction amountContinuing connected during 2009transactions (RMB'000)

Ash disposal fees to China Datang Corporation 57,890

Interest expenses payments to Datang Finance 139,022

Interest income from Datang Finance (Note) 14,296

Equipment purchase from Datang Technology 284,790

Equipment and material purchase expenditures

and agency fees payable to China Water

Resources & Power 235,926

Note : Pursuant to the "Financial Services Agreement" dated 28 August 2008

entered into between the Company and Datang Finance Company Limited

("Datang Finance"), the average daily deposit balance for the Company's

deposits at Datang Finance in 2009 did not exceed the cap of the average daily deposit balance (including any interest accrued) of RMB4.5 billion as set out in the agreement. As at 31 December 2009, the balance of deposits of the Company and its subsidiaries in Datang Finance was RMB147.097 million.

On 27 April 2009, the Company, Datang Finance and Lvsigang Power Company entered into the "Entrusted Loan Agreement" whereby Datang Finance was designated by the Company to act as a lending agent to release an entrusted loan of RMB200 million, which was funded by the Company to Lvsigang Power Company. Since Datang Finance is a subsidiary of China Datang Corporation and Lvsigang Power Company is an assoicate of China Datang Corporation, a controlling shareholder of the Company, the Entrusted Loan Agreement constituted a connected transaction of the Company which was subject to reporting and announcement requirements of Chapter 14A of the Listing Rules.

In August 2009, the Company and other shareholders (including China DatangCorporation ("CDC")) of Datang Finance increased their respective capitalcontributions to Datang Finance according to their respective originalshareholding proportions. The capital contributions totalled RMB500 million, ofwhich the Company contributed RMB100 million. The respective shareholdingstructure of Datang Finance of its shareholders remain unchanged after the saidincrease in share capital.On 14 August 2009, Zhuozi Windpower Company, a wholly-owned subsidiary of theCompany, and China Datang Corporation Technology Engineering Company Limited("Datang Technology") entered into the "General Project Contracting Agreementfor Zhuozi Windpower Mill Phase IV (48.75MW)" ("Contracting Agreement") at acontract amount of approximately RMB382 million. Pursuant to the ContractingAgreement, Datang Technology agreed to provide general contracting services forthe project construction of Phase 4 of the Zhuozi wind power project under theZhuozi Windpower Company.On 14 August 2009, the Company's wholly-owned subsidiary Energy and ChemicalCompany entered into the Investment Agreement on Duolun Coal Chemical Projectwith CDC to construct and operate the Duolun Coal Chemical Project. The DuolunCoal Chemical Project is located in Duolun County, Xilinguole League of theInner Mongolia Autonomous Region. The project uses the brown coal as rawmaterials from the East Unit 2 coal mine of Shengli Coal Mine in InnerMongolia, which is wholly-owned by the Company. It produces chemical productswith advanced technologies, including pulverised coal gasification technology,synthetic gas purification technology, large-scale methanol synthesistechnology, methanol-to-propylene technology and propylene polymerizationtechnology. This project is expected to produce 460,000 tonnes of polypropyleneper year and other by-products.On 1 September 2009, the Company and China National Water Resources & ElectricPower Materials & Equipment Corporation ("China Water Resources & Power")entered into the "Framework Agreement for Centralised Materials Purchase" inconnection with the centralised purchase of production materials required fortechnological renovation projects. The annual cap amount for the year 2009 wasRMB248.46 million. Since China Water Resources & Power is a subsidiary of CDC,the agreement constituted continuing connected transactions of the Companywhich was subject to reporting and announcement requirements of Chapter 14A ofthe Listing Rules.On 20 November 2009, the Company, CDC, Datang Jilin Power Generation Co., Ltd(a subsidiary of CDC), Datang International (Hong Kong) Limited (a subsidiaryof the Company), Datang International Energy Chemical Co., Ltd (a subsidiary ofthe Company), Datang Shandong Power Generation Co., Ltd (a subsidiary of CDC)and China Datang Foreign Investment Company Limited (a subsidiary of CDC)entered into a series of Assets Transfer Agreements and Equity TransferAgreements. Pursuant to the agreements, (i) CDC agreed to transfer thepreliminary projects assets to the Company including Hulunbeier ProjectPlanning Department, the preliminary project assets of Hulunbei'er ZhaluomudeWater Conservancy and Hudropower Key Project, Liaoning Tieling Energy andChemical Project Planning Department and Datang auxiliary power projectsplanning departments, with a total consideration amounting to RMB33,075,026.42;(ii) the Company agreed to transfer the preliminary projects assets to CDCincluding Shandong Datang Dongying Wind Power Plant Planning Department, BeibenHydropower Project Planning Department and Salakang Hydropower Project PlanningDepartment in the region of Mekong River in Laos with a total considerationamounting to RMB400,307,684.28; (iii) CDC agreed to transfer the equityinterests of project companies to the Company including 100% equity interest inHulunbei'er Chemical Fertiliser Company, 100% equity interest in Zhangzhou WindPower Company, 100% equity interest in Liaoning New Energy Company and 40%equity interest in Diaobingshan Power Generation Company with a totalconsideration of RMB500,712,551.48; (iv) the Company agreed to transfer equityinterests of certain project companies including 100% equity interests inDongying Wind Power Company with a total consideration of RMB103,981,700.00.

The independent non-executive Directors have discussed the above transactions and confirmed that:

(1) the above transactions were made in the ordinary and the usual course of business of the Company;

(2) the above transactions were made either on normal commercial terms (i.e.such terms are applicable to similar transactions with other similar businessentities in China); or if there were no sufficient comparable transactions, onterms no less favourable to the Company than terms available to or from (asappropriate) independent third parties; and

(3) according to the relevant agreement governing such transactions on terms that are fair and reasonable and in the interest of the shareholders of the Company as a whole.

In accordance with Rule 14A.38 of the Listing Rules, the Board engaged theauditors of the Company to perform certain factual finding procedures on theabove continuing connected transactions on a sample basis in accordance withHong Kong Standard on Related Services 4400 "Engagements to perform Agreed UponProcedures Regarding Financial Information" issued by the Hong Kong Instituteof Certified Public Accountants. The auditors have reported their factualfindings on the selected samples based on the agreed procedures to the Board.It stated that:

(a) the said transactions have been approved by the Board;

(b) the said transactions were made in accordance with the pricing policy of the Company, if applicable;

(c) the said transactions were entered into pursuant to the relevant agreement governing those transactions; and

(d) the said transactions did not exceed their respective caps applicable to such transactions.

Material Litigation

The Company was not involved in any material litigation during the Year.

Retirement Scheme

In accordance with the State's employee retirement scheme, the Company has topay a basic pension insurance premium on behalf of the employees at a rate of20% of the staff's salaries whereby the employees would receive a monthlypension payment each month after retirement. In addition, the Company has alsoimplemented an enterprise annuity plan, whereby employees will make monthlycontributions at a fixed amount as individual savings pension insurance fund,while the Company will contribute a proportionate amount of the employees'contributions as supplementary pension insurance fund. The Company may at itsdiscretion provide additional non-recurring individual savings pensioninsurance fund depending on the operating results of the year. When retired, anemployee will receive individual savings pension insurance fund and corporatesupplemental savings pension insurance fund by the Company. Apart from suchcontributions, the Company has no other liabilities towards the staffretirement scheme.

Interest Capitalisation

During the Year, the interest capitalised in respect of construction-in-progress amounted to approximately RMB 2,799 million.

Other Significant Matters

1. Pursuant to the resolutions passed at the Company's 2008 annual generalmeeting held on 3 June 2009, the Company distributed a 2008 cash dividend ofRMB0.11 per share (tax inclusive) to all shareholders based on the total sharecapital of 11,780,037,578 shares of the Company as at 31 December 2008.2. On 31 December 2009, the Company entered into a supplemental agreement toacquire 100% equity interest of Yuneng (Group) Company Limited ("Yuneng Group")with the existing shareholders of Yuneng Group at a consideration of RMB1.345billion. In addition, following the approval by the China Securities RegulatoryCommission, after 31 December 2009 until the publication date of this report,the Company has issued to domestic target investors, under a non-public issue,530,000,000 shares of RMB-denominated ordinary shares at an issue price ofRMB6.23 per share, raising a total fund of RMB3.302 billion. For details,please refer to Note 43 to the Financial Statements under IFRS.

The Audit Committee considers that the 2009 annual financial report of the Company and its subsidiaries has complied with the applicable accounting standards, and that the Company has made appropriate disclosure thereof.

Compliance of the Code on Corporate Governance Practices

To the knowledge of the Board, the Company has complied with the Code on Corporate Governance Practices (the "Code") as set out in Appendix 14 to the Listing Rules during the Year.

Compliance of the Model Code for Securities Transactions by Directors of Listed Issuers

Upon specific enquiries made to all Directors and in accordance withinformation provided, the Board confirmed that all Directors have complied withthe Model Code as the code of conduct for securities transactions by Directorsduring the Year.

Independent Non-executive Directors

The Company received from each of its independent non-executive Directors anannual confirmation of his/her independence pursuant to Rule 3.13 of theListing Rules. After making queries and reviewing the annual confirmationletters from all independent non-executive Directors in respect of theirindependence according to Rule 3.13 of the Listing Rules, the Company confirmsthat all independent non-executive Directors are independent individuals.

Auditors

The Company's financial statements for the year ended 31 December 2009 prepared under International Financial Reporting Standards have been audited by PricewaterhouseCoopers.

By Order of the BoardZhai RuoyuChairman19 April 2010

Report of the Supervisory Committee

During 2009, in compliance with the principle of being accountable to allshareholders of the Company and in accordance with the Company Law of the PRC(the "Company Law"), the Articles of Association of Datang International PowerGeneration Co., Ltd. (the "Articles of Association"), Order of Meeting of theSupervisory Committee of Datang International Power Generation Co., Ltd. (the"Order of Meeting of Supervisory Committee") and the relevant requirements ofthe listing rules of the Company's listing locations, members of theSupervisory Committee of the Company dutifully and conscientiously dischargedtheir monitoring duty. In 2009, the Supervisory Committee attended all generalmeetings, Board meetings and meetings of the specialised committees of theBoard held during the Year. Meanwhile, it actively participated in the reviewof the Company's major decisions and examined the Company's operation andfinancial position periodically. It also strove to protect the rights oftheshareholders, the benefits of the Company as well as the legal interests ofstaff. The detailed report on the work of the Supervisory Committee for 2009 isas follows:Supervisory Committee Meetings

Convening of Supervisory Details of the subjects discussed at Committee meetings the Supervisory Committee meetings On 30 March 2009, the ninth meeting Considered and approved the 2008 Work of the sixth session of Supervisory Report of the Supervisory Committee, Committee of the Company was held the Reconciliation of 2009 Accounting Discrepancy, the 2008 Financial Budget, the 2009 Financial Budget, the full text and the summary of the 2008 Annual Report and the results announcement

On 27 April 2009, the tenth meeting Considered and approved the 2009 First of the sixth session of Supervisory Quarterly Report of the Company

Committee of the Company was held

On 19 May 2009, the eleventh meeting Considered and approved and elected of the sixth session of Supervisory Mr. Chao Xinyi as the chairman

Committee of the Company was held of the Supervisory Committee and

agreed that Mr. Zhang Jie ceased to be the chairman of the Supervisory Committee

On 14 August 2009, the twelfth meeting Considered and approved the full text of the sixth session of Supervisory and summary of the 2009 Interim

Committee of the Company was held Report of the Company and the results announcement

On 21 October 2009, the eighth meeting Considered and approved the 2009 Third of the sixth session of Supervisory Quarterly Report of the Company

Committee of the Company was held

Independent Opinions of the Supervisory Committee on Relevant Matters of the Company

(1) The Company's Operation in Compliance with Laws

During the reporting period, members of the Supervisory Committee participatedin the discussions on major operating decisions through attending Boardmeetings and general meetings of the Company, and monitored the financialposition and the operation of the Company. The Supervisory Committee is of theview that the Company's business was regulated and operating in strictcompliance with the Company Law and the Articles of Association and otherrelevant regulations and systems in 2009 and its operation and decisions werescientific and rational. Meanwhile, the Company enhanced its internalmanagement and internal control systems and established sound internal controlmechanisms. In fulfilling their duties, Directors and senior management of theCompany acted diligently and dutifully, abiding by the State laws andregulations and the Articles of Association and systems as well as safeguardingthe interests of the Company. No act which violated laws and regulations orcontravened the Company's interests and minority shareholders' lawful interestswere discovered.

(2) Financial Activities of the Company

During the reporting period, the Supervisory Committee conscientiously andcarefully examined and reviewed the Company's accounting statements andfinancial information. The Supervisory Committee also took part in reviewingthe auditors' report and offered opinions and recommendations on the auditors'work. The Supervisory Committee is of the view that the preparation of theCompany's financial statements complies with the relevant requirements of theAccounting Rules for Business Enterprises and the Accounting Standards forBusiness Enterprises, and that the Company's 2009 financial report and thestandard unqualified audit report issued by the accountants truthfully reflectthe financial position and operating results of the Company.

(3) Actual Application of the Latest Fundraising Proceeds by the Company

In August 2009, the Company issued RMB3 billion corporate bonds, raising RMB3 billion (net RMB2.976 billion) for the year ended 2009. The fund raised has been utilised.

(4) Acquisition and Disposal of Assets by the Company

Pursuant to the relevant agreement, the Company acquired 100% equity interestin Yuneng (Group) Company Limited at an acquisition consideration of RMB1.345billion in cash, aiming at enhancing the Company's strategic plan,strengthening the Company's regional advantage in Chongqing, striving forthoroughness in power generation as the principal business, expandingdiversified businesses and enhancing the Company's overall profitability.Pursuant to the relevant agreement, the Company received the transfer ofcertain preliminary project assets owned by China Datang Group including thepreliminary project assets of Hunlunbei'er Project Planning Department, DatangTieling Energy and Chemical Project Planning Department and Datang Fujian PowerGeneration Project Planning Department at a consideration of RMB33,075,026.42.

The Company transferred certain preliminary project assets to China Datang Group including the overseas preliminary project assets owned by Datang International (Hong Kong) Company Limited, a wholly-owned subsidiary of the Company and the preliminary project assets of Datang Dongying Power Plant Planning Department at a consideration of RMB400,307,684.28.

The Company received the transfer of equity interests of certain preliminaryproject assets owned by China Datang Group including 25% investment rights ofHulunbei'er Zhaluomude Water Conservancy and Hydropower Key Project, 100%equity interest in Hulunbeier Chemical Fertiliser Company, 100% equity interestin Datang Liaoning New Energy Co., Ltd. and 40% equity interest in LiaoningDiaobingshan Coal Gangue Power Generation Co., Ltd. at a consideration ofRMB500,712,551.48.The Company transferred the equity interests of certain preliminary projectassets owned by the Company including 100% equity interest in Shangdong DatangInternational Dongying Wind Power Generation Co., Ltd. at a consideration ofRMB103,981,700.The above-mentioned acquisitions and disposals were considered and approved bythe Board and constituted connected transactions. The independent Directorsexpressed independent opinions that the considerations of the relevantacquisitions and disposals were reasonable, and did not harm the interests ofthe Company's shareholders.

(5) The Connected Transactions Engaged by the Company

The connected transactions engaged by the Company (including those related todaily operation, assets acquisition or disposal, joint external investment andrelated debts and liabilities) during the Year complied with normal commercialterms. Such transactions complied with the requirements of the State laws,regulations and the Articles of Association, while the information disclosureand related obligations were timely and thoroughly fulfilled in accordance withthe requirements of the listing rules of the Shanghai Stock Exchange and theHong Kong Stock Exchange.Work Plan for 2010In 2010, members of the Supervisory Committee of the Company willconscientiously learn the relevant State laws and regulations in order toenhance its political quality and business ability, and to raise the awarenessof strengthening supervision and diligently and dutifully fulfillingobligations. With a spirit of being accountable to shareholders and the staffof the enterprise, as well as aligning with the Company's operating activities,members of the Supervisory Committee exercise effective supervision over theCompany's major decisions through attending Board meetings and relevantimportant business meetings of the Company, with a view to raising theCompany's awareness of risk-prevention. They will also improve the internalcontrol system of the Company and continuously enhance the corporate governancestructure, with a view to further upgrading the regulated operation standardsof the Company.Supervisory Committee ofDatang International Power Generation Co., Ltd.

19 April 2010

Taxation in the United Kingdom

The comments below are a general guide only, based on the tax law and practicein force as at the date of this document which may be subject to changes orrevisions. They relate only to certain limited aspects of the tax position ofshareholders of the Company who are United Kingdom ("UK") resident, and (if anindividual) who are also UK ordinarily resident and domiciled and who holdshares in the Company as an investment, not as a share dealer or financialtrader ("Relevant Shareholders"). This section is not intended to be and shouldnot be construed as legal or tax advice to any particular shareholder. If youare in any doubt as to your tax position you should consult an appropriateprofessional advisor.Relevant Shareholders will generally be subject to UK income tax or corporationtax on the gross amount of dividends paid by the Company, but will normally beentitled to a credit against such UK income tax or corporation tax for any PRCwithholding tax charged on the dividend.Under the current double taxation treaty between the PRC and the UK, RelevantShareholders will generally be entitled to a reduced rate of PRC withholdingtax on dividends paid to them by the Company (details of which can be obtainedfrom HM Revenue & Customs). Individual shareholders will also be entitled to anon-payable tax credit of one ninth of the distribution.A corporate Relevant Shareholder should generally be exempt from UK corporatetax in respect of dividends paid to them by the Company. Where this is not thecase, corporate Relevant Shareholders who control (directly or indirectly) atleast 10% of the voting rights of the Company may be entitled to credit againstUK corporation tax chargeable in respect of dividends paid to them by theCompany for any underlying PRC tax payable by the Company in respect of theprofits out of which dividends were paid.

Relevant Shareholders will generally be subject to UK tax on chargeable gains on any gain on a disposal of shares, as computed for the purposes of such tax.

Independent Auditor's Report

To the shareholders of Datang International Power Generation Co., Ltd.

(incorporated in the People's Republic of China with limited liability)

We have audited the consolidated financial statements of Datang InternationalPower Generation Co., Ltd. (the "Company") and its subsidiaries set out onpages 68 to 211, which comprise the consolidated and company balance sheets asat 31 December 2009, and the consolidated statement of comprehensive income,the consolidated statement of changes in equity and the consolidated cash flowstatement for the year then ended, and a summary of significant accountingpolicies and other explanatory notes.

Directors' responsibility for the financial statements

The directors of the Company are responsible for the preparation and the trueand fair presentation of these consolidated financial statements in accordancewith International Financial Reporting Standards and the disclosurerequirements of the Hong Kong Companies Ordinance. This responsibility includesdesigning, implementing and maintaining internal control relevant to thepreparation and the true and fair presentation of financial statements that arefree from material misstatement, whether due to fraud or error; selecting andapplying appropriate accounting policies; and making accounting estimates thatare reasonable in the circumstances.

Auditor's responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal controlrelevant to the entity's preparation and true and fair presentation of thefinancial statements in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by the directors, as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion

In our opinion, the consolidated financial statements give a true and fair viewof the financial position of the Company and of the Company and itssubsidiaries as at 31 December 2009, and of the Company and its subsidiaries'financial performance and cash flows for the year then ended in accordance withInternational Financial Reporting Standards and have been properly prepared inaccordance with the disclosure requirements of the Hong Kong CompaniesOrdinance.

Other matters

This report, including the opinion, has been prepared for and only for you, asa body, and for no other purpose. We do not assume responsibility towards oraccept liability to any other person for the contents of this report.

PricewaterhouseCoopers

Certified Public AccountantsHong Kong, 19 April 2010Balance Sheets As At 31 December 2009

(All amounts expressed in thousands of Rmb) Company and its subsidiaries Company 31 December 31 December Note 2009 2008 2009 2008 (Restated) (Note 5(a)) ASSETS Non-current assets Property, plant and equipment 6 156,001,431 134,820,403 9,550,804 34,302,022 Investments in subsidiaries 7 - - 16,616,425 9,643,931 Investments in jointly controlled entities 8 1,636,674 1,302,097 1,754,088 1,366,826 Investments in associates 9 3,772,537 2,050,393 2,800,835 1,301,382 Available-for-sale 10 investments 1,339,829 675,849 1,045,608 569,400 Land use rights 11 1,523,509 1,269,909 544,430 542,979 Deferred housing benefits 12 163,384 193,469 37,473 46,081 Intangible assets 13 2,122,836 2,031,470 34,358 587,944 Long-term entrusted loans to related parties 14 130,194 50,104 3,894,922 5,212,655 Deferred income tax assets 34 744,114 711,096 41,556 30,811 Other long-term assets 109,422 80,170 18,661 - 167,543,930 143,184,960 36,339,160 53,604,031 Current assets Inventories 15 1,855,177 2,142,781 194,318 376,425 Short-term entrusted loans to related parties 16 17,000 31,330 - 260,529 Prepayments and other receivables 17 6,574,901 2,486,512 8,039,282 2,671,630 Dividends receivable - - 98,766 96,357 Accounts and notes receivable 18 6,634,917 4,312,697 1,184,183 1,400,964 Income tax recoverables 91,216 - - -Restricted cash 19 - 460,477 - - Fixed deposits over three months 19 - 30,000 - - Cash and cash equivalents 19 1,506,435 5,078,032 291,589 2,053,885 Assets of disposal group classified as held for sale - 992,146 - 545,000 16,679,646 15,533,975 9,808,138 7,404,790 Total assets 184,223,576 158,718,935 46,147,298 61,008,821 Balance Sheets (continued)As At 31 December 2009

(All amounts expressed in thousands of Rmb)

Company and its subsidiaries Company 31 December 31 December Note 2009 2008 2009 2008 (Restated) (Restated) (Notes 2(a), (Note 2(a) 5(a)) EQUITY AND LIABILITY Capital and reserves Attributable to the equity holders of the Company Share capital 20 11,780,038 11,780,038 11,780,038 11,780,038 Reserves 21 12,700,049 11,769,363 12,617,543 11,363,329 Retained earnings - Proposed dividend 38 861,703 1,295,804 861,703 1,295,804 - Others 856,695 1,406,306 863,408 1,092,661 26,198,485 26,251,511 26,122,692 25,531,832 Minority interests 6,649,510 4,654,462 - - Total equity 32,847,995 30,905,973 26,122,692 25,531,832 Non-current liabilities Long-term loans 22 99,506,545 69,026,422 10,409,600 13,697,500 Long-term bonds 23 5,938,544 - 5,938,544 - Deferred income 24 475,788 499,328 357,299 318,336 Deferred income tax liabilities 34 323,789 395,549 - 34,413 Provision 36,008 - - - Other long-term liabilities 25 3,701,165 4,170,097 27,000 - 109,981,839 74,091,396 16,732,443 14,050,249 Balance Sheets (continued)As At 31 December 2009

(All amounts expressed in thousands of Rmb)

Company and its subsidiaries Company 31 December 31 December Note 2009 2008 2009 2008 (Restated) (Restated) (Notes 2(a), (Note 2(a)) 5(a)) Current liabilities Accounts payable and accrued liabilities 26 14,040,020 13,229,560 1,653,258 3,509,935 Taxes payable 380,778 382,216 125,505 401,718 Dividends payable 36,909 145 - - Short-term loans 27 19,569,023 29,604,108 550,000 13,302,587 Short-term bonds 28 - 3,500,000 - 3,500,000 Current portion of long-term liabilities 22, 25 7,367,012 6,861,589 963,400 712,500 Liabilities of disposal group classified as held for sale 5(c) - 143,948 - - 41,393,742 53,721,566 3,292,163 21,426,740 Total liabilities 151,375,581 127,812,962 20,024,606 35,476,989 Total equity and liabilities 184,223,576 158,718,935 46,147,298 61,008,821 These financial statements have been approved for issue by the Board of Directors on 19 April 2010. Cao Jingshan Zhou Gang Director Director

The Notes to the Financial Statements are an integral part of these financial statements.

Consolidated Statement Of Comprehensive Income For The Year Ended 31 December 2009 (All amounts expressed in thousands of Rmb, except per share data) For the year ended 31 December Note 2009 2008 (Restated) (Note 5(a)) Operating revenue 30 47,942,923 36,900,065 Operating costs Local government surcharges (382,296) (333,868) Fuel-power generation (22,147,443) (22,506,680) Fuel-coal sales (4,860,370) (193,435) Depreciation (7,506,973) (6,205,584) Repairs and maintenance (1,809,210) (1,459,100) Salaries and staff welfare (1,822,231) (1,778,648) Others (2,670,053) (1,530,311) Total operating costs (41,198,576) (34,007,626) Operating profit 31 6,744,347 2,892,439 Shares of post-tax losses of jointly controlled entities 8 (52,685) (57,278) Shares of post-tax profits of associates 9 462,112 427,796 Investment income 6,245 45,515 Other gains 32 148,441 903,194 Interest income 33,124 83,467 Finance costs 33 (4,110,557) (3,694,929) Profit before income tax expense 3,231,027 600,204 Income tax expense 34 (638,711) (71,811) Profit for the year 2,592,316 528,393

Consolidated Statement Of Comprehensive Income (Continued)

For The Year Ended 31 December 2009

(All amounts expressed in thousands of Rmb, except per share data)

For the year ended 31 December Note 2009 2008 (Restated) (Note 5(a)) Other comprehensive income / (loss), net of tax Fair value gain / (loss) on available-for-sale investments 10,955

(2,845,037)

Share of other comprehensive loss of associates (29,494)

(343,107)

Currency translation differences 655 19,880 Other comprehensive loss for the year, net of tax (17,884) (3,168,264) Total comprehensive income / (loss) for the year 2,574,432 (2,639,871) Profit attributable to: - Equity holders of the Company 1,612,317 749,354 - Minority interests 979,999 (220,961) 2,592,316 528,393

Total comprehensive income / (loss)

attributable to: - Equity holders of the Company 1,592,242 (2,418,910) - Minority interests 982,190 (220,961) 2,574,432 (2,639,871) Earnings per share for profit attributable to the equity holders of the Company during the year - basic and diluted (Rmb) 37 0.14 0.06 Dividends proposed 38 861,703 1,295,804 Dividends paid 38 1,295,804 1,408,582

The Notes to the Financial Statements are an integral part of these financial statements.

Consolidated Statement Of Changes In Equity

Please refer below link for more details:http://www.prnasia.com/sa/attachment/2010/05/20100504145307.pdfConsolidated Cash Flow Statement For The Year Ended 31 December 2009 (All amounts expressed in thousands of Rmb)

Note 2009 2008 (Restated) (Note 5(a))

Cash flows from operating activities Cash generated from operations 39(a) 12,841,813 7,879,608 Interest received 33,124 82,895 Income tax paid (1,130,084) (733,828)

Net cash generated from operating activities 11,744,853 7,228,675

Cash flows from investing activities

Acquisitions of property, plant and equipment (27,453,375) (32,509,064)

Acquisitions of land use rights (35,394)

(443,437)

Acquisitions of intangible assets (11,417)

(650,517)

Decrease /(Increase) in fixed deposits

over three months 30,000

(30,000)

Acquisitions of subsidiaries, net of cash acquired (218,527)

(1,263,903)

Acquisitions of jointly controlled entities -

(243,126)

Additional investments in jointly controlled entities (387,262) (370,325) Acquisitions of associates (184,892) - Establishments of associates (53,300)

(20,000)

Additional investments in associates (108,100)

(594,580)

Investments in available-for-sale investments (655,880) (231,016)

Acquisitions of minority interests of subsidiaries (7,000)

(110,938)

Prepayment for an investment (1,289,000)

-

Additional entrusted loans made (124,270)

(52,340)

Proceeds from disposals of property, plant and equipment 758,749

130,933

Proceeds from disposals of subsidiaries, net 395,990

98,778

Proceeds from disposal of an associate 87,099 - Proceeds from sales of available-for-sale investments 86,631 1,389,671 Proceeds received from repayments of 58,600 49,995 entrusted loans Dividends received 344,923 97,855 Decrease of security deposits for notes payable 184,437 162,132 Others 6,793 7,005 Net cash used in investing activities (28,575,195) (34,582,877)

Consolidated Cash Flow Statement (Continued) For The Year Ended 31 December 2009 (All amounts expressed in thousands of Rmb)

Note 2009 2008 (Restated) (Note 5(a))

Cash flows from financing activities

Capital injections from ultimate parent company -

113,990

Capital injections from minority interests of subsidiaries 2,003,680 198,051 Drawdown of short-term loans 57,298,202

32,824,430

Drawdown of long-term loans 44,211,565

51,322,487

Issuance of short-term bonds -

3,500,000

Issuance of medium-term notes and long-term bonds,net of issuance costs 5,967,000

-

Proceeds from sale and lease back arrangements - 4,455,019 Repayments of short-term loans (53,305,028)

(45,764,427)

Repayments of long-term loans (30,201,544)

(5,920,749)

Repayments of short-term bonds (3,500,000)

(3,000,000)

Payments on sale and lease back arrangements (578,951) (384,510) Interest paid (6,621,328) (6,115,357) Dividends paid to shareholders of the Company (1,295,804) (1,408,582) Dividends paid to minority interests of subsidiaries (609,490) (831,767) Underwriting fees (35,800) (35,800) Others (74,284) 14,687 Net cash generated from financing activities 13,258,218 28,967,472

Net (decrease) / increase in cash and

cash equivalents (3,572,124) 1,613,270

Cash and cash equivalents at beginning

of year 5,078,032 3,450,505

Exchange gains on cash and cash

equivalents 527 14,257 Cash and cash equivalents at end of 19 1,506,435 5,078,032 year

The Notes to the Financial Statements are an integral part of these financial statements.

Notes to the Financial Statements

For the year ended 31 December 2009

(All amounts expressed in thousands of Rmb unless otherwise stated)

1. GENERAL INFORMATION

Datang International Power Generation Co., Ltd. (the "Company") wasincorporated in Beijing, the People's Republic of China (the "PRC") on 13December 1994 as a joint stock limited company. The Company listed its H Shareson the Stock Exchange of Hong Kong Limited and the London Stock ExchangeLimited on 21 March 1997 and was registered as a sino-foreign joint stocklimited company on 13 May 1998. On 20 December 2006, the Company listed its AShares on the Shanghai Stock Exchange.

The principal activities of the Company and its subsidiaries are power generation and power plant development in the PRC. The Company and its subsidiaries also engaged in coal trading, chemical products manufacturing and selling, etc..

The Directors consider that China Datang Corporation ("China Datang") as theultimate parent company of the Company. China Datang does not produce financialstatements available for public use.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financialstatements are set out below. These policies have been consistently applied toall the years presented, unless otherwise stated.

(a) Basis of preparation

These financial statements have been prepared in accordance with InternationalFinancial Reporting Standards ("IFRS"). These financial statements have beenprepared under the historical cost convention, as modified by the revaluationof available-for-sale investments and financial liabilities (includingderivative instruments) at fair value through profit or loss.The preparation of financial statements in conformity with IFRS requires theuse of certain critical accounting estimates. It also requires management toexercise its judgement in the process of applying the accounting policies ofthe Company and its subsidiaries. The areas involving a higher degree ofjudgement or complexity, or areas where assumptions and estimates aresignificant to the financial statements are disclosed in Note 4.As at 31 December 2009, a significant portion of the funding requirements ofthe Company and its subsidiaries for capital expenditures was satisfied byshort-term borrowings. Consequently, as at 31 December 2009, the Company andits subsidiaries had a negative working capital balance of approximatelyRmb24.71 billion (2008: Rmb38.19 billion). The Company and its subsidiaries hadsignificant undrawn borrowing facilities, subject to certain conditions,amounting to approximately Rmb169.00 billion (2008: Rmb38.16 billion) (Note 39(c)) and may refinance and/or restructure certain short-term borrowings intolong-term borrowings and will also consider alternative sources of financing,where applicable. The Directors of the Company and its subsidiaries are of theopinion that the Company and its subsidiaries will be able to meet itsliabilities as and when they fall due within the next twelve months and haveprepared these financial statements on a going concern basis.

New and amended standards adopted by the Company and its subsidiaries

The Company and its subsidiaries adopted the following new standards and amendments to standards for the first time for the financial year beginning 1 January 2009.

-- International Accounting Standard ("IAS") 1 (revised), 'Presentation offinancial statements'. The revised standard prohibits the presentation of itemsof income and expenses (i.e. 'non-owner changes in equity') in the statement ofchanges in equity, requiring non-owner changes in equity to be presentedseparately from owner changes in equity. All non-owner changes in equity arerequired to be shown in a performance statement.Entities can choose whether to present one performance statement (the statementof comprehensive income) or two statements (the income statement and statementof comprehensive income).The Company and its subsidiaries elected to present one performance statementand these financial statements have been prepared under the revised disclosurerequirements. Since the change in accounting policy only impacts presentation,there is no impact on earnings per share.-- Amendments to IFRS 1 and IAS 27, 'Cost of an investment in a subsidiary,jointly controlled entity or associate', which the amendments to part of IAS 27are relevant to the Company and its subsidiaries. The amendments to IAS 27remove the definition of cost method and require an entity to recognise adividend from a subsidiary, jointly controlled entity or associate in statementof comprehensive income in its separate financial statements when its right toreceive the dividend is established. The Company and its subsidiaries earlyadopt the amendments prospectively from 1 January 2009 in their separatefinancial statements in the current year. These amendments have no materialimpact on those financial statements in the current year.-- IFRS 8, 'Operating segments'. IFRS 8 replaces IAS 14, 'Segment reporting'.It requires a 'management approach' under which segment information ispresented on the same basis as that used for internal reporting purposes. TheCompany and its subsidiaries categorised their operating activities into powergeneration segment, chemical segment, coal segment and all other segments forthe purpose of segment reporting. In addition, the segment informationdisclosed is based on the information for internal reporting purpose which isunder China Accounting Standards for Business Enterprises ("PRC GAAP").Operating segments are reported in a manner consistent with the internalreporting provided to the chief operating decision-maker. The chief operatingdecision-makers have been identified as executive directors and certain seniormanagement of the Company that make strategic decisions.

IFRS 8 revised certain disclosure items which the Company and its subsidiaries have restated comparative information accordingly.

-- Amendment to IFRS 7, 'Financial instruments: disclosures'. The amendmentenhances the disclosure requirements about fair value measurement andreinforces existing principles for disclosure about liquidity risk. Theamendment introduces a three-level hierarchy for fair value measurementdisclosures and requires some specific quantitative disclosures for financialinstruments on the lowest level in the hierarchy. It also requires the Companyand its subsidiaries to provide additional disclosures about the relativereliability of fair value measurements. In addition, the amendment clarifiesand enhances the existing requirements for the disclosure of liquidity riskprimarily requiring a separate liquidity risk analysis for derivative andnon-derivative financial liabilities. As the change in accounting policy onlyresults in additional disclosures, there is no impact on earnings per share.

Adjustment on statutory surplus reserve

In year 2009, the Company and its subsidiaries adopted CAS Interpretation No. 3promulgated by the Ministry of Finance of the People's Republic of China("MOF") retroactively effective on 1 January 2009. According to CASInterpretation No. 3, the Company and its subsidiaries recorded certainretrospective adjustments under PRC GAAP and adjusted statutory surplus reserveof Rmb12.253 million and Rmb27.163 million as at 1 January 2008 and 2009,accordingly. In order to ensure the distributable reserve under IFRS is notaffected by the adjustments at each individual year, the Directors of theCompany and its subsidiaries retrospectively reclassified the same amounts fromstatutory surplus reserve to retained earnings accordingly under IFRS (Note21).

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

The following standards and amendments to existing standards have been published that are mandatory for the accounting periods of the Company and its subsidiaries beginning on or after 1 January 2010, but the Company and its subsidiaries have not early adopted.

-- IAS 24 (Revised), 'Related party disclosures' (effective for annual periodbeginning on or after 1 January 2011). The revised standard introduces anexemption from all of the disclosure requirements of IAS 24 for transactionsamong government-related entities and the government. Those disclosures arereplaced with a requirement to disclose the name of the government and thenature of their relationship, the nature and amount of any individuallysignificant transactions, and the extent of any collectively significanttransactions qualitatively or quantitatively. It also clarifies and simplifiesthe definition of a related party. The Company and subsidiaries will apply thisstandard to related party disclosures from 1 January 2011.-- IAS 27 (Revised), 'Consolidated and separate financial statements'(effective for annual period beginning on or after 1 July 2009). The revisedstandard requires the effects of all transactions with non-controllinginterests to be recorded in equity if there is no change in control and thesetransactions will no longer result in goodwill or gains and losses. Thestandard also specifies the accounting when control is lost. Any remaininginterest in the entity is re-measured to fair value and a gain or loss isrecognised in profit and loss. The Company and its subsidiaries will apply thisstandard prospectively to transactions with non-controlling interests from 1January 2010.-- IAS 38 (Amendment), 'Intangible Assets' (effective for annual periodbeginning on or after 1 July 2009). The amendment is part of the annualimprovement project of the International Accounting Standard Board (the "IASB")published in April 2009. The amendment clarifies guidance in measuring the fairvalue of an intangible asset acquired in a business combination and it permitsthe grouping of intangible assets as a single asset if each asset has similareconomic useful lives. The Company and its subsidiaries will apply thisamendment prospectively to all business combinations from 1 January 2010.-- IFRS 3 (Revised), 'Business combinations' (effective for annual periodbeginning on or after 1 July 2009). The revised standard continues to apply theacquisition method to business combinations, with some significant changes. Forexample, all payments to purchase a business are to be recorded at fair valueat the acquisition date, with contingent payments classified as debtsubsequently re-measured through profit or loss. There is a choice on anacquisition by acquisition basis to measure the non-controlling interest in theacquiree either at fair value or at the non-controlling interest'sproportionate share of the acquiree's net assets. All acquisition-related costsshould be expensed. The Company and subsidiaries will apply this standardprospectively to all business combinations from 1 January 2010.-- IFRS 5 (Amendment), 'Non-current assets held for sale and discontinuedoperations'. The amendment is part of the annual improvement projects of theIASB published in May 2008 and April 2009. The amendment provides clarificationthat IFRS 5 specifies the disclosures required in respect of non-current assets(or disposal groups) classified as held for sale or discontinued operations. Itclarifies that all assets and liabilities of a subsidiary are classified asheld for sale if a partial disposal sale plan results in loss of control, andrelevant disclosure should be made for this subsidiary if the definition of adiscontinued operation is met. The amendment also clarifies that the generalrequirement of IAS 1 still apply, particularly paragraph 15 (to achieve a fairpresentation) and paragraph 125 (sources of estimation uncertainty) of IAS 1.The Company and its subsidiaries will apply this amendment from 1 January 2010.It is not expected to have a material impact on the financial statements of theCompany and its subsidiaries.-- IFRS 9, 'Financial Instruments' (effective for annual period beginning on orafter 1 January 2013). The standard requires financial assets to be classifiedinto two measurement categories: those to be measured subsequently at fairvalue and those to be measured subsequently at amortised cost. The decision isto be made at initial recognition. The classification depends on the entity'sbusiness model for managing its financial instruments and the contractual cashflow characteristics of the instrument. An instrument is subsequently measuredat amortised cost only if it is a debt instrument and both the objective of theentity's business model is to hold the asset to collect the contractual cashflows, and the asset's contractual cash flows represent only payments ofprincipal and interest (i.e. it has only 'basic loan features'). All other debtinstruments are to be measured at fair value through profit or loss. All equityinstruments are to be measured subsequently at fair value. Equity instrumentsthat are held for trading will be measured at fair value through profit orloss. For all other equity investments, an irrevocable election can be made atinitial recognition, to recognise unrealised and realised fair value gains andlosses through other comprehensive income rather than profit or loss. Therewill be no recycling of fair value gains and losses to profit or loss. Thiselection may be made on an instrument-by-instrument basis. Dividends are to bepresented in profit or loss, as long as they represent a return on investment.The Company and its subsidiaries will apply this standard prospectively tofinancial instruments from 1 January 2013.

(b) Consolidation

The consolidated financial statements include the financial statements of the Company and all of its subsidiaries made up to 31 December.

Subsidiaries

Subsidiaries are all entities over which the Company and its subsidiaries havethe power to govern the financial and operating policies generally accompanyinga shareholding of more than one half of the voting rights. The existence andeffect of potential voting rights that are currently exercisable or convertibleare considered when assessing whether the Company and its subsidiaries controlanother entity. Subsidiaries are fully consolidated from the date on whichcontrol is transferred to the Company and its subsidiaries and arede-consolidated from the date that control ceases.

(i) Common control business combination

These consolidated financial statements incorporate the financial statements ofthe combining entities or businesses in which the common control combinationoccurs as if they had been combined from the date when the combining entitiesor businesses first came under the control of the controlling party.The net assets of the combining entities or businesses are combined using theexisting book values from the controlling parties' perspective. No amount isrecognised in consideration for goodwill or excess of acquirers' interest inthe net fair value of acquiree's identifiable assets, liabilities andcontingent liabilities over cost at the time of common control combination, tothe extent of the continuation of the controlling party's interest.The consolidated statement of comprehensive income includes the results of eachof the combining entities or businesses from the earliest date presented orsince the date when the combining entities or businesses first came under thecommon control, where there is a shorter period, regardless of the date of thecommon control combination.

The comparative amounts in the consolidated financial statements are presented as if the entities or businesses had been combined at the previous balance sheet date or when they first came under common control, whichever is shorter.

Transaction costs, including professional fees, registration fees, costs offurnishing information to shareholders, costs or losses incurred in combiningoperations of the previously separate businesses, etc., incurred in relation tothe common control combination that is to be accounted for by using mergeraccounting is recognised as expenses in the period in which they are incurred.

(ii) Non-common control business combination

Purchase accounting is used to account for the acquisitions of subsidiaries bythe Company and its subsidiaries from third parties. The acquisition costs andidentifiable net assets obtained by acquirer are measured at the fair value onthe acquisition date. Related separate financial statements are adjusted on thebasis of the fair value of the identifiable net assets on acquisition date whenpreparing consolidated financial statements. The excess of acquisition costsover the proportionate share of the fair value of the identifiable net assetsacquired is recorded as goodwill. The shortfall of acquisition costs to theproportionate share of the fair value of the identifiable net assets acquiredis recognised through current period profit and loss.Direct costs attributable to the business combination are recorded asacquisition costs. Any charges or commission arising from issuance of equitysecurities for business combination are offset against premium of those equitysecurities.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated after taking into account any impairment indicator of the asset transferred.

Accounting policies of subsidiaries have been changed where necessary in the consolidated financial statements to ensure consistency with the policies adopted by the Company and its subsidiaries.

In the Company's balance sheet, the investments in subsidiaries are stated at cost less provision for impairment losses. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable.

Transactions with minority interests

The Company and its subsidiaries apply a policy of treating transactions withminority interests as transactions with equity holders of the Company and itssubsidiaries. For purchases from minority interests, the difference between anyconsideration paid and the relevant share acquired of the carrying value of netassets of the subsidiary is recorded in equity. Gains or losses on disposals tominority interests are recorded in equity.

Jointly controlled entities and associates

Jointly controlled entities are all entities over which the Company and its subsidiaries and other parties undertake an economic activity through a contractual arrangement which is subject to joint control and none of the participating parties has unilateral control over the economic activity.

Associates are all entities over which the Company and its subsidiaries havesignificant influence but not control, generally accompanying a shareholding ofbetween 20% and 50% of the voting rights.Investments in jointly controlled entities and associates are accounted forusing the equity method of accounting and are initially recognised at cost. TheCompany and its subsidiaries' shares of the post-acquisition profits or lossesof jointly controlled entities and associates is recognised in the profit orloss and their share of post-acquisition movements in reserves is recognised inreserves. The cumulative post-acquisition movements are adjusted against thecarrying amounts of the investments. The Company and its subsidiaries'investments in jointly controlled entities and associates include goodwillidentified on acquisition, net of any accumulated impairment loss (Note 2(h)).When the Company and its subsidiaries' share of losses in a jointly controlledentity or an associate equals or exceeds their interest in the jointlycontrolled entity or associate, including any other unsecured receivables, theCompany and its subsidiaries do not recognise further losses, unless theCompany and its subsidiaries have incurred obligations or made payments onbehalf of the jointly controlled entities or associates.Unrealised gains on transactions between the Company and its subsidiaries andtheir jointly controlled entities and associates are eliminated to the extentof the Company and its subsidiaries' interests in the jointly controlledentities and associates. Unrealised losses are also eliminated unless thetransaction provides evidence of an impairment of the asset transferred.Accounting policies of jointly controlled entities and associates have beenchanged where necessary to ensure consistency with the policies adopted by theCompany and its subsidiaries.In the Company's balance sheet, the investments in jointly controlled entitiesand associates are stated at cost less provision for impairment losses (Note 2(h)). The results of jointly controlled entities and associates are accountedfor by the Company on the basis of dividends received and receivable.

(c) Segment reporting

The Company and its subsidiaries determine their reportable segments based onoperating segments. An operating segment represents a component of the Companyand its subsidiaries that meets all the conditions below:

-- The component earns revenue and incurs expenses in its daily operating activities;

-- Chief operating decision-makers ("CODM") of the Company and its subsidiariescan regularly review the operating results of the component in order to makedecisions on allocating resources and assessing its performance;

-- The financial position, operating results, cash flows and other related information of the component are available.

Segment information of the Company and its subsidiaries adopt the same standards as internal reports. The disclosure format of operating segment disclosures is consistent with that of the Company and its subsidiaries reported internally to executive directors and certain senior management (including chief accountant) (together referred to as the "senior management"), who perform the functions of CODM.

(d) Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each entity of the Company andits subsidiaries are measured using the currency of the primary economicenvironment in which the entity operates (the "functional currency"). Thefinancial statements are presented in Renminbi ("Rmb"), which is the functionaland presentation currency of the Company.

Transaction and balances

Foreign currency transactions are translated into the functional currency usingthe exchange rates prevailing at the dates of the transactions. Foreignexchange gains and losses resulting from the settlement of such transactionsand from the translation at year-end exchange rates of monetary assets andliabilities denominated in foreign currencies are recognised in the profit orloss unless it arises from foreign currency loans borrowed for the acquisitionor construction of qualifying assets which is eligible for capitalization.

Group companies

The results and financial position of all the group entities (none of which hasthe currency of a hyperinflationary economy) that have a functional currencydifferent from the presentation currency are translated into the presentationcurrency as follows:

-- assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

-- income and expenses for each consolidated statement of comprehensive incomeare translated at average exchange rates of the month when the transactionincurred (unless this average is not a reasonable approximation of thecumulative effect of the rates prevailing on the transaction dates, in whichcase income and expenses are translated at the rates on the dates of thetransactions); and

-- all resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of the netinvestment in foreign operations, are taken to shareholders' equity. When aforeign operation is partially disposed of or sold, exchange differences thatwere recorded in equity are recognised in the profit or loss as part of thegain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

(e) Property, plant and equipment

Property, plant and equipment, apart from construction-in-progress ("CIP"), arestated at historical cost less accumulated depreciation and accumulatedimpairment loss. The initial cost comprises purchase price, import duties,non-refundable purchase taxes and any directly attributable costs of bringingthe asset to its working condition and location for its intended use.CIP represents plants and properties under construction and is stated at cost,which includes the costs of construction, plant and machinery and other directcosts. CIP is not depreciated until such time as the relevant assets arecompleted and ready for its intended use when they are transferred to therelevant asset categories.Depreciation is calculated using the straight-line method to allocate theircosts to their residual values over their estimated useful lives, as follows:Dam 45 yearsBuildings 20-50 yearsElectricity utility plants 12-45 years Transportation facilities, computer and others 4-10

years

The assets' residual values, useful lives and depreciation method are reviewed, and adjusted if appropriate, at least at each balance sheet date.

Subsequent costs are included in the asset's carrying amount or recognised asseparate assets, as appropriate, only when it is probable that future economicbenefits associated with the item will flow to the Company and its subsidiariesand the cost of the item can be measured reliably. The carrying amount of thereplaced part is derecognised. All other repairs and maintenance are charged tothe profit or loss during the financial period in which they are incurred.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount (Note 2(h)).

Gains or losses on disposals are determined by comparing the proceeds on disposal with the carrying amount and are included within 'operating costs - others' in the consolidated statement of comprehensive income.

(f) Land use rights

Land use rights represent upfront prepayments made for the land use rights andleasehold land and are expensed in the profit or loss on a straight-line basisover the terms of the leases. Whenever there is impairment, the impairment isexpensed in the profit or loss.

(g) Intangible assets

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fairvalue of the Company and its subsidiaries' share of the net identifiable assetsof the acquired subsidiary / jointly controlled entity / associate at the dateof acquisition. Goodwill on acquisitions of subsidiaries is included in'intangible assets'. Goodwill on acquisitions of jointly controlled entitiesand associates is included in investments in jointly controlled entities andassociates, respectively and is tested for impairment as part of the overallbalance. Separately recognised goodwill is tested annually for impairment andcarried at cost less accumulated impairment losses. Impairment losses ongoodwill are not reversed. Gains or losses on the disposal of an entity includethe carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose identified according to operating segment.

Resource use rights

Resource use rights are stated at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over their estimated useful lives (10 years) and recorded in 'operating costs - others' in the consolidated statement of comprehensive income.

Mining Rights

Mining rights are stated at cost less accumulated amortisation and impairment losses, and are amortised on a systemic and proper method to reflect the pattern in which the asset's future economic benefits are expected to be realised by the Company and its subsidiaries.

Technology know-how

Acquired technology know-how related to the production process of coal chemical products, which is initially recognised at acquisition cost and will subsequently be amortised on straight-line basis over the beneficial period upon commencement of commercial production.

Computer software

Acquired computer software are capitalised on the basis of the costs incurredto acquire and bring to use the specific software. These costs are amortisedover their estimated useful lives and recorded in 'operating costs - others' inthe consolidated statement of comprehensive income.

(h) Impairment of investments in subsidiaries, jointly controlled entities, associates and non-financial assets

Assets that have an indefinite useful life, for example goodwill, are notsubject to amortisation and are tested annually for impairment. Assets arereviewed for impairment whenever events or changes in circumstances indicatethat the carrying amount may not be recoverable. An impairment loss isrecognised for the amount by which the asset's carrying amount exceeds itsrecoverable amount. The recoverable amount is the higher of an asset's fairvalue less costs to sell and value in use. For the purposes of assessingimpairment, assets are grouped at the lowest levels for which there areseparately identifiable cash flows (cash-generating units). Non-financialassets other than goodwill that suffered impairment are reviewed for possiblereversal of the impairment at each reporting date.

Impairment testing of the investments in subsidiaries, jointly controlled entities or associates is required upon receiving dividends from these investments if the dividend exceeds the total comprehensive income of the subsidiaries, jointly controlled entities or associates in the period the dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds the carrying amount in the consolidated financial statements of the investee's net assets including goodwill.

(i) Non-current assets (or disposal groups) held for sale

Non-current assets (or disposal groups) are classified as assets held-for-sale when their carrying amount is to be recovered principally through

a sale transaction and a sale is considered highly probable. They are stated at

the lower of carrying amount and fair value less costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use.

(j) Financial assets

Classification

The Company and its subsidiaries classified their financial assets into the following categories: loans and receivables and available-for-sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Loans and receivablesLoans and receivables are non-derivative financial assets with fixed ordeterminable payments that are not quoted in an active market. They areincluded in current assets, except for maturities greater than 12 months afterthe balance sheet date, which are classified as non-current assets. Loans andreceivables primarily included 'long-term entrusted loans to related parties','short-term entrusted loans to related parties', 'other receivables','dividends receivable', 'accounts and notes receivables', 'restricted cash','fixed deposits over three months' and 'cash and cash equivalents' in thebalance sheet.

Available-for-sale investments

Available-for-sale investments are non-derivatives financial assets that areeither designated in this category or not classified in any of the othercategories. They are included in non-current assets unless the investmentsmature or management intends to dispose the investment within 12 months afterthe balance sheet date.Recognition and measurementRegular way purchases and sales of financial assets are recognised ontrade-date - the date on which the Company and its subsidiaries commit topurchase or sell the asset. Investments are initially recognised at fair valueplus transaction costs for all financial assets not carried at fair valuethrough profit or loss. Available-for-sale investments are subsequently carriedat fair value. Loans and receivables are carried at amortised cost using theeffective interest method. Financial assets are derecognised when the rights toreceive cash flows from the investments have expired or have been transferredand the Company and its subsidiaries have transferred substantially all risksand rewards of ownership.Changes in the fair value of available-for-sale investments are recognised inother comprehensive income. When available-for-sale investments are sold orimpaired, the accumulated fair value adjustments recognised in equity areincluded in the profit or loss as 'other gains'. Dividends onavailable-for-sale equity instruments are recognised in the profit or loss whenthe right of the Company and its subsidiaries to receive payments isestablished.The Company and its subsidiaries assess at each balance sheet date whetherthere is objective evidence that a financial asset or a group of financialassets is impaired. In the case of equity securities classified asavailable-for-sale, a significant or prolonged decline in the fair value of thesecurity below its cost is considered as an indicator that the securities areimpaired. If any such evidence exists for available-for-sale investments, thecumulative loss - measured as the difference between the acquisitioncost and the current fair value, less any impairment loss on that investmentspreviously recognised in profit or loss - is removed from equity andrecognised in the profit or loss. Impairment losses recognised in the profit orloss on equity instruments are not reversed through the profit or loss.Impairment loss on the available-for-sale investment recorded at cost ismeasured as the difference between the carrying amount of the investment andthe present value of estimated future cash flows discounted at the currentmarket rate of return for a similar financial asset. Impairment testing ofloans and receivables is described in Note 2(l).

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

(k) Inventories

Inventories are stated at the lower of cost and net realisable value.Inventories are expensed to fuel costs or other relevant operating costs whenused, sold or capitalised to property, plant and equipment when installed, asappropriate, using moving weighted average method. Costs of inventories includedirect material cost and transportation expenses incurred in bringing them tothe working locations. Net realisable value is the estimated selling price inthe ordinary course of business, less the estimated costs in power generationand selling expenses.(l) Loans and receivablesLoans and receivables are recognised initially at fair value and subsequentlymeasured at amortised cost using the effective interest method, less provisionfor impairment. A provision for impairment of loans and receivables isestablished when there is objective evidence that the Company and itssubsidiaries will not be able to collect all amounts due according to theoriginal terms of receivables. Significant financial difficulties of thedebtor, probability that the debtor will enter bankruptcy or financialreorganisation and default or delinquency in payments are considered indicatorsthat the receivable is impaired. The amount of the provision is the differencebetween the carrying amount of the asset and the present value of estimatedfuture cash flows, discounted at the original effective interest rate. Thecarrying amounts of the assets are reduced through the use of allowanceaccounts, and the amount of the provision is recognised in the consolidatedstatement of comprehensive income within 'operating costs - others'.When a receivable is uncollectible, it is written off against the allowanceaccount for receivables. Subsequent recoveries of amounts previously writtenoff are credited against 'operating costs - others' in the consolidatedstatement of comprehensive income.

(m) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks and financial institution and other short-term highly liquid investments with original maturities of three months or less.

(n) Payables

Payables primarily include accounts payable and accrued liabilities, etc. andare recognised initially at fair value and subsequently measured at amortisedcost using the effective interest method.

(o) Borrowings

Borrowings are recognised initially at fair value, net of transaction costsincurred. Borrowings are subsequently stated at amortised cost; any differencebetween proceeds (net of transaction costs) and the redemption value isrecognised in the profit or loss over the period of the borrowings using theeffective interest method.

Borrowings are classified as current liabilities unless the Company and its subsidiaries have contractual or an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

(p) Borrowing costs

Borrowing costs incurred for the construction for any qualifying assets arecapitalised during the period of time that is required to complete and preparethe asset for its intended use. Other borrowing costs are expensed and includedas finance costs in the period in which they are incurred.

(q) Taxation

Value-added tax ("VAT")

Sales of goods of the Company and its subsidiaries are subjected to VAT. VAT payable is determined by applying 17% or 13% on the taxable revenue arising from sales of goods after offsetting deductible input VAT of the period.

Current and deferred income tax

The tax expense for the period comprises current and deferred income tax.Income tax is recognised in the profit or loss, except to the extent that itrelates to items recognised in other comprehensive income or directly inequity. In this case, the income tax is also recognised in other comprehensiveincome or directly in equity, respectively.The statutory income tax is assessed on an individual entity basis, based oneach of results of operations of the Company and its subsidiaries. Thecommencement date of the tax holiday period of each power plant is individuallydetermined. The income tax charges are based on assessable profit for the yearand after considering deferred income tax.On 16 March 2007, the National People's Congress promulgated the "CorporateIncome Tax Law of the People's Republic of China" which became effective from 1January 2008. Domestic entities of the Company and its subsidiaries whichoriginally enjoyed preferential income tax treatments will transit to 25%gradually in five years from 1 January 2008 onwards. The Company and itsdomestic subsidiaries with original applicable income tax rate of 33% aresubject to income tax rate of 25% from 1 January 2008 onwards. Pursuant to GuoFa [2007]39 document, starting from 1 January 2008, entities which originallyenjoyed two-year tax exemption and three-year 50% reduction tax treatments,continue to follow the original tax laws, administrative regulations andrelevant documents until respective expiration dates. However, those not beingentitled to preferential income tax treatment as a result of tax losses, thepreferential period started from 2008 onwards.The statutory income tax rate applicable to Datang International (Hong Kong)Limited ("Datang Hong Kong"), a subsidiary of the Company incorporated in HongKong changed from 17.5% in 2008 to 16.5% from 2009 onwards.Deferred income tax is recognised, using the liability method, on temporarydifferences arising between the tax bases of assets and liabilities and theircarrying amounts in the financial statements. However, deferred income tax isnot accounted for if it arises from the initial recognition of an asset orliability in a transaction other than a business combination that at the timeof the transaction affects neither accounting nor taxable profit or loss.Deferred income tax is determined using tax rates (and laws) that have beenenacted or substantially enacted by the balance sheet date and are expected toapply when the related deferred income tax asset is realised or the deferredincome tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax is provided on temporary differences arising on investmentsin subsidiaries, jointly controlled entities and associates, except where thetiming of the reversal of the temporary difference is controlled by the Companyand its subsidiaries and it is probable that the temporary difference will notreverse in the foreseeable future.

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

-- The Company and its subsidiaries have the legally enforceable right to settle current income tax assets and current income tax liabilities; and

-- The deferred income tax assets and liabilities relate to income tax leviedby the same taxation authority on either the taxable entity or differenttaxable entities where there is an intention to settle the balances on a netbasis.(r) Government grants

Grants from the government are recognised at their fair value when there is reasonable assurance that the grants will be received and the Company and its subsidiaries will comply with all attached conditions.

Government grants relating to costs are deferred and recognised in the profitor loss over the period necessary to match them with the costs that they areintended to compensate.

Government grants relating to property, plant and equipment are included in non-current liabilities as 'deferred income' and are credited to the profit or loss on a straight-line basis over the expected lives of the related assets.

(s) Revenue and income recognition

Revenue comprises the fair value of the consideration received or receivablefor the sale of goods and services in the ordinary course of the activities ofthe Company and its subsidiaries. Revenue is shown net of VAT, returns, rebatesand discounts and after eliminating sales within the Company and itssubsidiaries.The Company and its subsidiaries recognise revenue when the amount of revenuecan be reliably measured, it is probable that future economic benefits willflow to the entity and specific criteria have been met for each of the Companyand its subsidiaries' activities as described below.

Sales of goods

Revenue from sales of electricity and heat represents the amount of tariffs billed for electricity and heat generated and transmitted to the respective power companies and heat supply companies.

Revenue associated with sales of coal and other goods is recognized when thetitle to the goods has been passed to customers, which is the date when thegoods are either picked up at site or free on board (i.e. FOB), or delivered tothe designated locations and accepted by the customers.

Interest income

Interest income is recognised on a time-proportion basis using the effective interest method.

(t) Employee benefits

Pension and other social obligations

The Company and its subsidiaries have various defined contribution plans inaccordance with the local conditions and practices in the municipalities andprovinces in which they operate. Defined contribution plans are pension and /or other social benefit plans under which the Company and its subsidiaries payfixed contributions into a separate entity (a fund) and will have no legal orconstructive obligations to pay further contributions if the fund does not holdsufficient assets to pay all employees benefits relating to employee service inthe current and prior periods. The contributions are recognised as salaries andstaff welfare when they are due.

Staff housing benefits

The Company provides housing to its employees at preferential prices. Thedifference between the selling price and the cost of housing is considered ahousing benefit to the employees and is recorded as deferred housing benefitswhich are amortised on a straight-line basis over the estimated average servicelives of the relevant employees and included in salaries and staff welfareexpenses.During 2005 to 2007, the Company and some of its subsidiaries also started toprovide monetary housing subsidies to their employees. These subsidies areconsidered housing benefits and are recorded as deferred housing benefits whichare amortised on a straight-line basis over the estimated service average livesof the relevant employees and included in salaries and staff welfare expenses.

In addition, the Company and its subsidiaries also contribute to the state-prescribed housing fund. Such costs are charged to the profit or loss as incurred.

Apart from those described above, the Company and its subsidiaries do not have other legal or constructive obligations over such benefits.

(u) Leases

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

Operating leases (lessee)

Operating lease expenses are capitalised or expensed on a straight-line basis over the lease terms.

Finance lease (lessee)At the commencement of the lease term, the Company and its subsidiariesrecognise finance leases resulted from a sale and leaseback transaction asassets and liabilities in their balance sheets at amounts equal to the fairvalue of the leased property or, if lower, the present value of the minimumlease payments, each determined at the inception of the lease. The Company andits subsidiaries adopt the effective interest method in calculating the presentvalue of the minimum lease.On balance sheet date, the Company and its subsidiaries present the net amountof the minimum lease payments after deducting any unrealised finance costs innon-current liabilities and current liabilities respectively. Any excess ofsales proceeds over the carrying amount shall be deferred and amortised overthe lease terms.(v) Dividend distribution

Dividend distribution is recorded as a liability in the financial statements in the period in which the dividends are approved by the shareholders of the Company and its subsidiaries.

(w) Financial guarantee contracts

The Company and its subsidiaries issue financial guarantee contracts thattransfer significant insurance risk. Financial guarantee contracts are thosecontracts that require the issuer to make specified payments to reimburse theholders for losses they incur because specified debtors fail to make paymentswhen due in accordance with the original or modified terms of debt instruments.At each balance sheet date, liability adequacy tests are performed to ensurethe adequacy of the contract liabilities. In performing these tests, currentbest estimates of future contractual cash flows and related administrativeexpenses are used. Any deficiency is immediately charged to the profit or lossby establishing a provision for losses arising from these tests.

(x) Contingencies

Contingent liabilities are recognised in the financial statements when it isprobable that a liability will be recognised. Where no provision is recorded,they are disclosed unless the possibility of an outflow of resources embodyingeconomic benefits is remote.

A contingent asset is not recognised in the financial statements unless virtually certain but disclosed when an inflow of economic benefits is probable.

3. FINANCIAL, CAPITAL AND INSURANCE RISKS MANAGEMENT

The Company works out general principles for overall risk management, includingmanagement of financial risks, as well as management policies covering specificareas. In considering the importance of risks, the Company identifies andevaluates risks at head office and individual subsidiary level, and requiresanalysis and proper communication for the information collected periodically.

(a) Financial risk management

The activities of the Company and its subsidiaries expose them to a variety offinancial risks including cash flow interest rate risk, foreign exchange risk,price risk, credit risk and liquidity risk. The overall risk management programof the Company and its subsidiaries focus on the unpredictability of financialmarkets and seek to minimise potential adverse effects on financial performanceof the Company and its subsidiaries.

Market risk

Cash flow interest rate risk

As the Company and its subsidiaries have no significant interest-bearing assetsexcept for bank deposits, the income and operating cash flows of the Companyand its subsidiaries are substantially independent of changes in marketinterest rates.Most of the bank deposits are maintained in the savings and fixed depositsaccounts in the PRC. The interest rates are regulated by the People's Bank ofChina while the Company and its subsidiaries closely monitor the fluctuation onsuch rates periodically. As the average interest rates applied to the depositsare relatively low, the Directors are of the opinion that the Company and itssubsidiaries are not exposed to any significant interest rate risk for theseassets held as at 31 December 2008 and 2009.The interest rate risk of the Company and its subsidiaries arises from loans.Loans with variable interest rates expose the Company and its subsidiaries tocash flow interest rate risk. The exposures of such a risk are disclosed inNotes 22 and 27 to the financial statements. The Company and its subsidiariesanalyses interest rate exposures on a dynamic basis. Various scenarios aresimulated taking into consideration refinancing, renewal of existing positionsand alternative financing.As at 31 December 2009, if interest rates on Rmb, HK dollar ("HKD") and USdollar ("USD") denominated loans had been 50 basis points (2008: 50 basispoints) higher / lower respectively with all other variables held constant,interest expense would have been Rmb366.429 million (2008: Rmb296.201 million),Rmb1.980 million (2008: Rmb1.779 million) and Rmb3.219 million (2008: Rmb3.649million) higher / lower, respectively. The ranges of such sensitivitiesdisclosed above were based on the observations on the historical trends ofrelated interest rates during the previous year under analysis.

Foreign exchange risk

Foreign exchange risk of the Company and its subsidiaries primarily arises fromloans primarily denominated in USD. Related exposures are disclosed in Notes 22and 27 to the financial statements. The management of the Company and itssubsidiaries maintain a close look at the international foreign currency marketon the changing exchange rates and takes these into consideration wheninvesting in foreign currency deposits and loans raising.

As at 31 December 2009, if Rmb had weakened / strengthened by 5% (2008: 5%) against USD with all other variables held constant, exchange gain would have been Rmb61 million (2008: Rmb86 million) lower / higher. The range of such sensitivity disclosed above was based on the observation on the historical trend of related exchange rates during the previous year under analysis.

Price risk

The available-for-sale investments of the Company and its subsidiaries areexposed to equity security price risk. The exposure of such a risk is disclosedin Note 10 to the financial statements. Following the sale of A shares of DaqinRailway Company Limited ("Daqin Railway") during 2008, the Directors are ofopinion that the Company and its subsidiaries are not exposed to anysignificant equity security price risk for these assets held as at 31 December2008 and 2009. The Company and its subsidiaries closely monitor the pricingtrends in the open market in determining their long-term strategic stakeholdingdecisions.

The Company and its subsidiaries also exposed to fuel price risk on fuel purchases. The Company and its subsidiaries manage such risk by entering bulk purchase agreements through its coal trading subsidiaries and continuously looking for acquisition opportunities of coal mines.

Credit risk

Credit risk primarily arises from bank deposits, credit exposures to customers, other receivables and entrusted loans to related parties. Related maximum exposures are disclosed in Notes 19, 18, 17, 14 and 16 to the financial statements, respectively.

The Company and its subsidiaries maintain most of their bank deposits inseveral major state-owned financial institutions in the PRC (Note 35(f)) and anon-bank financial institution which is a related party of the Company and itssubsidiaries (Note 19). With strong State support provided to those state-ownedfinancial institutions and the holding of directorship in the board of therelated party non-bank financial institution, the Directors are of the opinionthat there is no significant credit risk on such assets being exposed.With regard to accounts receivable arising from power sales, most of the powerplants of the Company and its subsidiaries sell electricity to their solecustomers, the power grid companies of their respective provinces or regionswhere the power plants operate. These power plants of the Company and itssubsidiaries communicate with their individual grid companies periodically andbelieve that adequate provision for doubtful accounts have been made in thefinancial statements. For accounts receivable arising from coal and chemicalproduct sales, the Company and its subsidiaries assess the credit quality ofthe customers, taking into account their financial positions, past experienceand other factors. They will also collect advanced payments from theircustomers. The Company and its subsidiaries perform periodic credit evaluationsof its customers and believe that adequate provision for doubtful debts havebeen made in the financial statements. The Company and its subsidiaries do nothold any collateral as security for all the receivables.

The concentrations of accounts receivable are disclosed in Note 18.

Regarding balances with related parties, the Company and its subsidiaries assessed the credibility of the borrowers by reviewing the operating results and gearing ratios periodically.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and cashequivalents, the availability of funding from an adequate amount of committedcredit facilities and the ability to close out market positions. Due to thedynamic nature of the underlying businesses, the Company and its subsidiariesaim to maintain flexibility in funding by maintaining availability undercommitted credit facilities.Management monitors the cash flow rolling forecasts of the Company and itssubsidiaries which comprises the undrawn borrowing facility and cash and cashequivalents (Notes 39(c) and 19) available as at each month end in meeting itsliabilities.The table below analyses the non-current liabilities of the Company and itssubsidiaries into relevant maturity groupings based on the remaining periodfrom the balance sheet to the contractual maturity dates. The amounts disclosedin the table are the contractual undiscounted cash flows. Except for theamounts presented below, all other financial liabilities, primarily includingaccounts payable, other payables, accruals, short-term loans and short-termbonds are due within the next 12 months from the balance sheet date. As theimpact of the discounting is not significant, the expected future cash flows ofbalances within 12 months approximate their carrying amounts. Company and its subsidiaries Within 1 year 1-2 years 2-5 years Over 5 years Total31 December 2009Long-term loans 6,842,438 19,699,203 39,380,101 40,427,241 106,348,983Long-term bonds - - 3,000,000 3,000,000 6,000,000 Finance lease liabilities 685,299 687,859 1,678,151 2,183,695 5,235,004Other long-term Liabilities 28,803 35,837 15,360 - 80,000Interest payables for loans 5,922,244 4,919,332 11,545,778 9,137,461 31,524,815Interest payables for bonds 282,000 282,000 837,000 750,000 2,151,000 13,760,784 25,624,231 56,456,390 55,498,397 151,339,80231 December 2008Long-term loans 6,501,903 13,690,060 24,451,883 30,884,479 75,528,325Finance lease Liabilities 631,449 738,630 2,092,499 2,788,547 6,251,125Other long-term Liabilities 40,000 28,560 15,357 - 83,917Interest payables for loans 5,395,197 3,805,135 7,897,645 6,860,820 23,958,797Interest payables for bonds 129,556 - - - 129,556 12,698,105 18,262,385 34,457,384 40,533,846 105,951,720 Company Within 1 year 1-2 years 2-5 years Over 5 years Total31 December 2009Long-term loans 954,400 2,354,400 6,283,200 1,772,000 11,364,000Long-term bonds - - 3,000,000 3,000,000 6,000,000Interest payables for loans 544,364 474,482 521,982 322,295 1,863,123Interest payables for bonds 282,000 282,000 837,000 750,000 2,151,000 1,780,764 3,110,882 10,642,182 5,844,295 21,378,12331 December 2008Long-term loans 712,500 4,882,500 5,357,500 3,457,500 14,410,000Interest payables for loans 1,269,520 695,095 991,977 274,986 3,231,578Interest payables for bonds 129,556 - - - 129,556 2,111,576 5,577,595 6,349,477 3,732,486 17,771,134Fair value estimationFair value measurements

Effective from 1 January 2009, the Company and its subsidiaries adopted the amendments to IFRS 7 for financial instruments that are measured in the balance sheet at fair value, this requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

-- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).

-- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (level 2).

-- Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) (level 3).

The following table presents financial assets of the Company and its subsidiaries that are measured at fair value at 31 December 2009.

Company and its subsidiaries Level 1 Level 2 Level 3 TotalAssets

Available-for-sale investments

- Equity securities (Note 10) 18,700 - - 18,700

Total assets 18,700 - - 18,700The fair value of financial instruments traded in active markets is based onquoted market prices at the balance sheet date. A market is regarded as activeif quoted prices are readily and regularly available from an exchange, dealer,broker, industry group, pricing service, or regulatory agency, and those pricesrepresent actual and regularly occurring market transactions on an arm's lengthbasis. The quoted market price used for financial assets held by the Companyand its subsidiaries is the current bid price. These instruments are includedin level 1. Instruments included in level 1 comprise equity investment in Bankof Communications Co., Ltd. classified as available-for-sale.

Fair value disclosures

The carrying amounts of bank balances and cash, accounts and notes receivables,other receivables, accounts payable and accrued liabilities, short-term loansand short-term bonds are assumed to approximate their fair values.

The fair value of financial liabilities for disclosure purpose is either at their quoted prices or estimated by discounting the future contractual cash flows at the current market interest rates that are available to the Company and its subsidiaries for similar financial instruments.

Fair value estimates are made at a specific point of time and are based onrelevant market information and information about the financial instruments.These estimates are subjective in nature and involve uncertainties and mattersof significant judgement and therefore cannot be determined with precision.Changes in assumptions could significantly affect the estimates.

(c) Capital risk management

The objectives of the Company and its subsidiaries when managing capital are tosafeguard the ability of the Company and its subsidiaries in continuing as agoing concern in order to provide returns for shareholders and benefits forother stakeholders and to maintain an optimal capital structure to reduce thecost of capital.

In order to maintain or adjust the capital structure, the Company and its subsidiaries may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to reduce debts.

The Company and its subsidiaries monitor capital on the basis of the assets-to-liabilities ratio. This ratio is calculated as total liabilities divided by total assets as shown on the consolidated balance sheet. The assets-to-liabilities ratio of the Company and its subsidiaries as at 31 December 2009 was 82.17% (2008: 80.53%).

The increase in the assets-to-liabilities ratio during 2009 was primarily dueto the increase of long-term borrowings borrowed for constructions andacquisitions. Taking into consideration of the expected operating cash flows ofthe Company and its subsidiaries and the available banking facilities and theirexperience in refinancing short-term borrowings, the management believes theCompany and its subsidiaries can meet their current obligations when they falldue.

(d) Insurance risk management

The Company and its subsidiaries issue financial guarantee contracts to itssubsidiaries, jointly controlled entity, associates, other equity investees anda former related party for their borrowings from financial institutions forbusiness developments that transfer significant insurance risk. The risk underany one financial guarantee contract is the possibility that the insured event(default of a specified debtor) occurs and the uncertainty of the amount of theresulting claims. By the nature of such financial guarantee contracts, thisrisk is predictable.Experience shows credit risks from specified debtors are relatively remote. TheCompany and its subsidiaries maintain a close watch on the financial positionand liquidity of the subsidiaries, the jointly controlled entity, associates,other equity investees and the former related party for which financialguarantees have been granted in order to mitigate such risks (Note 2(w)). TheCompany and its subsidiaries take all reasonable steps to ensure that they haveappropriate information regarding any claim exposure. Details of financialguarantee contracts are disclosed in Note 41.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

Estimates and judgments are continually evaluated and are based on historicalexperience and other factors, including expectations of future events that arebelieved to be reasonable under the circumstances.The Company and its subsidiaries make accounting estimates and assumptionsconcerning the future. The resulting accounting estimates will, by definition,seldom equal to the related actual results. The estimates and assumptions thathave a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next financial year are discussedbelow.

(a) Useful lives of property, plant and equipment

Management of the Company and its subsidiaries determine the estimated usefullives and related depreciation charges for its property, plant and equipment.This estimate is based on projected wear and tear incurred during powergeneration. This could change significantly as a result of technicalrenovations on power generators. Management will adjust the estimated usefullives where useful lives vary with previously estimated useful lives. It isreasonably possible, based on existing knowledge, that outcomes within the nextfinancial year that are different from assumptions could require materialadjustments to the carrying amount of property, plant and equipment.

(b) Impairment of property, plant and equipment

The Company and its subsidiaries perform impairment test on property, plant andequipment whenever any impairment indication exists. In accordance with Note 2(h), impairment is recognised as the amount by which the asset's carryingamount exceeds its recoverable amount. The estimation based on existingexperience may be different from the result of the next financial year and maylead to material adjustments to the carrying amount of property, plant andequipment.

Changes of assumptions in tariff and fuel price will affect the result of property, plant and equipment impairment assessment. As at 31 December 2009, if tariff had decreased by 1% from management's estimates with other variables held constant with the expectations, the Company and its subsidiaries would have to recognize impairment against property, plant and equipment by approximately Rmb371 million. If fuel price had increased by 1% from the management's estimates with other variables held constant with the expectations, the Company and its subsidiaries would have to recognize impairment against property, plant and equipment by approximately Rmb132 million.

(c) Approval of construction in new power plants

The ultimate approval from the National Development and Reform Commission("NDRC") on certain power plants construction projects of the Company and itssubsidiaries is a critical estimate and judgment of the directors. Such anestimate and judgment are based on initial approval documents received as wellas their understanding of the projects. Based on historical experience, theDirectors believe that the Company and its subsidiaries will receive finalapproval from the NDRC on the related power plant projects. Deviation from thisestimate and judgment could result in material adjustments to the carryingamount of the property, plant and equipment.

(d) Accounting estimates on impairment of goodwill

The Company and its subsidiaries performed impairment test annually whethergoodwill is impaired in accordance with the accounting policy stated in Note 2(g). The recoverable amounts of cash-generating units are determined based onvalue-in-use calculations. These calculations require the use of estimates(Note 13). It is reasonably possible, based on existing knowledge, thatoutcomes within the next financial year that are different from assumptionscould require material adjustments to the carrying amount of intangible assets.

(e) Deferred income tax assets

The estimates of deferred income tax assets require estimates over futuretaxable profit and corresponding applicable income tax rates of respectiveyears. The change in future income tax rates and timing would affect income taxexpense or benefit, as well as deferred income tax balance. The realization ofdeferred income tax assets also depends on the realization of sufficientprofitability (taxable profit) of the Company and its subsidiaries. Deviationof future profitability from the estimate could result in material adjustmentsto the carrying amount of deferred income tax assets.

(f) Estimate of income tax expense

The Company and its subsidiaries pay income tax in various regions. There canbe various uncertainties on the ultimate income tax treatments for manytransactions and events arising from normal operating activities, overallassets transfers and corporate restructuring. The Company and its subsidiarieshave to make critical accounting judgments when calculating income tax expenseat different regions. In the event that the finalised amounts recognised forsuch tax events are different from those originally recorded, this could resultin material adjustments to carrying amounts of taxes payable and deferredincome tax.

5. MATERIAL BUSINESS COMBINATIONS AND DISPOSAL

(a) Common control business combinations

On 30 November 2009, the Company acquired 100% equity interests of DatangLiaoning New Energy Co., Ltd. ("Liaoning New Energy") and its subsidiary andDatang Zhangzhou Wind Power Co., Ltd. ("Zhangzhou Wind Power") from ChinaDatang for a cash consideration of Rmb264.75 million while Datang Energy andChemical Company Limited ("Energy and Chemical Company"), one of itswholly-owned subsidiaries acquired 100% equity interest of Datang Hulunbei'erFertilizer Company Limited ("Hulunbei'er Fertilizer") from China Datang for acash consideration of Rmb51.22 million (collectively referred to as "commoncontrol entities acquired in 2009"). Such acquisitions became effective on 30November 2009. Thereafter, the Company and its subsidiaries controlled 100%equity interests in these entities above and became their controllingshareholders.As the Company, Energy and Chemical Company and the acquirees above are underthe common control of China Datang before and after the acquisitions, thesetransactions were accounted for as common control business combinations, usingmerger accounting for all periods presented herein. Equity interestName of acquiree Principal activities acquiredLiaoning New Energy and its subsidiary Wind power generation 100%Zhangzhou Wind Power Wind power generation 100%

Hulunbei’er Fertilizer Production and sales of chemical materials 100%

The consolidated balance sheet as at 31 December 2009:

Company and its Subsidiaries Common (before control 2009 common entities control business acquired Consolidation combinations) in 2009 adjustments(ii) ConsolidatedInvestments in common control entities acquired in 2009 (i) 442,519 - (442,519) -

Other assets, net 32,466,921 381,074 - 32,847,995Net assets 32,909,440 381,074 (442,519) 32,847,995Share capital 11,780,038 412,140 (412,140) 11,780,038Capital reserve 1,548,680 - (27,164) 1,521,516Statutory surplus Reserve 3,079,440 - - 3,079,440

Discretionary surplus

Reserve 7,866,188 - - 7,866,188Restricted reserve 153,864 - - 153,864Currency translation Differences 17,691 - - 17,691Available-for-sale investment revaluation reserve 105,705 - - 105,705Other reserves (44,355) - - (44,355)Retained earnings 1,752,679 (31,066) (3,215) 1,718,398Minority interests 6,649,510 - - 6,649,510Total 32,909,440 381,074 (442,519) 32,847,995Notes:(i) Subsequent to the acquisition date, the Company further injected capital ofRmb126.55 million into one of the acquirees, thereby the total investments asat 31 December 2009 exceeded the original cash consideration mentioned above.

(ii) The adjustment above represents the elimination of investments made by the Company and its subsidiaries in the common control entities acquired in 2009.

The consolidated balance sheet as at 31 December 2008:

Company and its Subsidiaries Common (before control 2009 common entities control business acquired Consolidation combinations) in 2009 adjustments(i) ConsolidatedNet assets 30,644,467 261,506 - 30,905,973Share capital 11,780,038 285,590 (285,590) 11,780,038Capital reserve 1,592,988 - 285,590 1,878,578Statutory surplus Reserve 2,886,134 - - 2,886,134Discretionary surplus Reserve 6,800,692 - - 6,800,692Restricted reserve 115,656 - - 115,656Currency translation Differences 17,036 - - 17,036Available-for-sale investment revaluation reserve 126,435 - - 126,435Other reserves (55,168) - - (55,168)Retained earnings 2,726,194 (24,084) - 2,702,110Minority interests 4,654,462 - - 4,654,462Total 30,644,467 261,506 - 30,905,973Note:

(i) The adjustment above represents the increase of the capital reserve of theCompany and its subsidiaries for acquisitions of the net assets of the commoncontrol entities acquired in 2009.

(b) Non-common control business combination

Acquisition of Ningxia Datang International Daba Power Generation Company Limited ("Daba Power Company")

On 1 July 2009, the Company entered into an agreement with Ningxia PowerCorporation ("Ningxia Power"), which holds 35% equity interest in Daba PowerCompany. Pursuant to this agreement, shareholders and directors of NingxiaPower will act in concert when exercising voting rights in meetings ofshareholders and board of directors with that of the Company. Therefore, theCompany obtained control over Daba Power Company and accounted Daba PowerCompany as a subsidiary since 1 July 2009.

As at the acquisition date, the fair value of identifiable assets and liabilities approximated to their carrying amounts and are as follows:

Cash and cash equivalents 29,494Accounts and notes receivable 86,187Prepayments and other receivables 28,199Inventories 39,952Property, plant and equipment 3,898,872Available-for-sale investment 50,000Intangible assets 1,823Other non-current assets 43,275Less: Loans (3,724,000) Other liabilities (417,274)

Fair value of net identifiable assets acquired 36,528

The acquired business contributed consolidated revenue of Rmb544.55 million andnet loss of Rmb60.05 million to the Company and its subsidiaries for the periodfrom the acquisition date to 31 December 2009. Should the acquisition hadoccurred on 1 January 2009, unaudited consolidated revenue would have beenRmb48,035 million and unaudited profit would have been Rmb2,557 million.

(c) Disposal of business

Disposal of assets and liabilities held for sale - Shanxi Zhongqiang Trade Company Limited ("Zhongqiang Company")

On 27 March 2009 (the "disposal date"), the Company disposed its 51% equity interest in Zhongqiang Company to Fushan Jietong Industrial Co., Ltd. and Ji Hongping.

Details of disposal consideration and related cash flows

Disposal consideration 585,000

Cash and cash equivalents received from disposal in 2009 300,000 Less: cash and cash equivalents held by Zhongqiang Company (177,207)

Net cash flow from disposal 122,793Details of net assets of Zhongqiang Company on disposal date are as follows:Current assets 385,433Non-current assets 663,001Total assets* 1,048,434Current liabilities (6,032)Non-current liabilities (137,916)Total liabilities (143,948)Net assets 904,486

* Assets of disposal group classified as held for sale also included goodwill arising from acquisition of Zhongqiang Company of Rmb83.712 million after deducting inter-company balance of Rmb140 million.

Details of gain on disposal

Disposal consideration 585,000

Less: net assets owned by Zhongqiang Company on the disposal

date (904,486)Minority interest of Zhongqiang Company 443,198Goodwill (83,712)Gain on disposal 40,000

Since Zhongqiang Company was still under construction, there was no revenue, expenses and profit from 1 January 2009 to the disposal date.

6. PROPERTY, PLANT AND EQUIPMENT

For more details, please visit:http://www.prnasia.com/sa/attachment/2010/05/20100504109744.pdf7. INVESTMENTS IN SUBSIDIARIES Company 2009 2008Beginning of year 9,643,931 6,503,628

Acquisitions of subsidiaries 637,354 978,815 Establishments of subsidiaries 4,450,330 660,000 Transfer from an associate to

a subsidiary 113,000 -Additional investments 2,000,410 2,145,266Disposals (228,600) (98,778)

Transfer to assets of disposal

group classified as held for sale - (545,000)

End of year 16,616,425 9,643,931

As at 31 December 2009, the Company directly and indirectly holds equity interests in the following subsidiaries, all of which are unlisted and most of them are established and registered in the PRC.

For more details, please visit:http://www.prnasia.com/sa/attachment/2010/05/20100504200475.pdf8. INVESTMENTS IN JOINTLY CONTROLLED ENTITIES Company and its subsidiaries Company 2009 2008 2009 2008Beginning of year 1,302,097 988,795 1,366,826 996,501Additional investments 387,262 370,325 387,262 370,325Shares of losses before income tax benefit (63,060) (63,193) - -Shares of income tax Benefit 10,375 5,915 - -Other equity movement â€" others - 255 - -End of year 1,636,674 1,302,097 1,754,088 1,366,826

As at 31 December 2009, the Company directly and indirectly held equity interests in the following jointly controlled entities, which are all unlisted limited liability companies established and operated in the PRC.

Registered and fully Equity PrincipalCompany name paid capital interest held activities Direct IndirectHebei Yuzhou Energy Multiple 825,023 50% - Investment holding Development Company LimitedKailuan (Group) Yuzhou Mining 812,254 34% 15% Coal mining and sales Company LimitedInner Mongolia Huineng Datang 50,000 40% - Coal mining and sales Changtan Coal Mining (pre-construction) Company Limited

Fujian Ningde Nuclear Power 1,900,000 44% - Nuclear power plant

Company Limited construction and operations (under construction)

The gross amounts of assets, liabilities and operating results of the jointly controlled entities of the Company and its subsidiaries are as follows:

2009 2008AssetsNon-current assets 13,174,463 6,623,426Current assets 5,038,876 3,645,048 18,213,339 10,268,474LiabilitiesNon-current liabilities (1,767,199) (1,701,671)Current liabilities (12,515,944) (5,583,396) (14,283,143) (7,285,067)Net assets 3,930,196 2,983,407Income 1,899,509 1,649,694Expenses (2,012,964) (1,755,070)Loss for the year (113,455) (105,376)

Proportionate shares of capital

commitment in jointly controlled

entities 3,432,915 2,428,416

There are no material contingent liabilities relating to the Company and its subsidiaries' interests in the jointly controlled entities and the jointly controlled entities themselves.

9. INVESTMENTS IN ASSOCIATES Company and its subsidiaries Company 2009 2008 2009 2008Beginning of year 2,050,393 1,402,347 1,301,382 686,802Acquisitions of associates 1,546,522 - 1,578,325 -Establishments of associates 53,300 20,000 13,300 20,000Additional investments 108,100 594,580 108,100 594,580Disposals (12,640) - (87,272) -Transfers of associates to subsidiaries (61,937) (3,315) (113,000) -Shares of profits before income tax expense 636,147 579,358 - -Shares of income tax expense (174,035) (151,562) - -Other equity movement â€" available-for-sale investment revaluation reserve (29,494) (343,107) - -Dividends (343,819) (47,908) - -End of year 3,772,537 2,050,393 2,800,835 1,301,382As at 31 December 2009, the Company and its subsidiaries held equityinterests in the following associates, all of which are unlisted and limitedliability companies established and operated in the PRC except MacroTechnologies Inc. (Vietnam) Limited, which is established and operated inVietnam. Registered Equity and fully paid interest PrincipalCompany name Legal status capital held activitiesDirectly heldNorth China Electric Power Research Limited 100,000 30% Power related Institute Company liability technology Limited company services Tongfang Investment Limited 550,000 36.36% Project Company Limited liability investments company and managementTongmei Datang Tashan Limited 2,072,540 28% Coal mining Coal Mine Company liability Limited companyTongmei Datang Tashan Limited Power Generation liability 410,000 40% Power generation Company Limited companyTangshan Huaxia Datang Limited 20,000 30% Power fuel trading Power Fuel Company liability Limited companyChina Datang Group Limited 1,000,000 20% Financial services Finance Company liability Limited company ("Datang Finance") Yunnan Datang Limited 2,000 40% Hydropower International Deqin liability construction and Hydropower Development company operations Company Limited (pre-construction) Inner Mongolia Bazhu Limited 140,000 20% Railway and Railway Company Limited liability highway company construction and operational management (pre-construction)

CNNC Liaoning Nuclear Limited Registered 20% Nuclear power

Power Co., Ltd. Liability capital: plant construction company 100,000; and operations paid-in capital: 81,000

Liaoning Diaobingshan

Coal Gangue Limited 437,500 40% Power

generation

Power Generation Co., Ltd. liability

("Diaobingshan Power company Company")Inner Mongolia Xiduo Limited Registered 34% Railway Railway liability capital: transportation Company limited company 3,535,789; services paid-in capital: 3,024,642Shantou Fengsheng Power Limited Registered Power Generation Company liability capital: 30,000; 41% generation Limited company Paid-in capital: 18,200COSCO Datang Shipping Limited liability 100,000 45% Cargo shipping Company Limited companyIndirectly heldInner Mongolia Datang Tongfang Limited liability 10,000 26% Development and Silicon and Aluminum company production of Technology Company Limited silicon and aluminum alloyMacro Technologies Inc. Limited liability USD150,000 35% Electricity (Vietnam) Limited company related technical services

Jinzhou City Thermal Power Limited liability 155,000 25.8% Heat supply Company Limited company

The gross amounts of assets, liabilities and operating results of the associates of the Company and its subsidiaries are as follows:

2009 2008Assets 28,840,441 34,236,806Liabilities (17,364,221) (27,303,084)Revenue 7,702,033 6,344,278Profit for the year 1,794,967 1,643,077

There are no material contingent liabilities relating to the Company and its subsidiaries' interests in associates and the associates themselves.

10. AVAILABLE-FOR-SALE INVESTMENTS Company and its subsidiaries Company 2009 2008 2009 2008Beginning of year 675,849 4,733,764 569,400 4,650,431Acquisition 50,000 - - -Additions 655,880 231,916 532,714 208,500Revaluation gains / (losses)* 14,606 (2,899,860) - (2,899,860)Disposals (Note 32) (56,506) (1,389,971) (56,506) (1,389,671)

End of year 1,339,829 675,849 1,045,608 569,400* For the year ended 31 December 2009, revaluation gain of available-for-saleinvestment mainly represents the increase in A share price of Bank ofCommunications Co., Ltd., which is listed in the Shanghai Stock Exchange. As at31 December 2009, fair value of this investment amounted to Rmb18.7 million. For the year ended 31 December 2008, revaluation loss of available-for-saleinvestment mainly represents the decrease in A share price of Daqin Railway,which is listed in the Shanghai Stock Exchange. During the year ended 31December 2008, the Company sold all the shares of Daqin Railway.

11. LAND USE RIGHTS

Land use rights represent prepayments made by the Company and its subsidiariesfor the leasehold land located in the PRC which are held on leases between

10years to 70 years.The movement is as follows: Company and its Company subsidiaries At 1 January 2008 Cost, as previously stated 898,721 406,223

Common control entities acquired in 2009

(Note 5 (a)) 153 - Cost, as restated 898,874 406,223

Accumulated amortisation, as previously stated (92,016) (75,024)

Common control entities acquired in 2009 (Note 5 (a)) (15) - Accumulated amortisation, as restated (92,031) (75,024) Net book amount 806,843 331,199 Year ended 31 December 2008 Opening net book amount 806,843 331,199 Additions 481,925 219,782 Amortisation (18,859) (8,002) Closing net book amount 1,269,909 542,979 At 31 December 2008 Cost, as previously stated 1,342,158 626,005

Common control entities acquired in 2009

(Note 5 (a)) 38,641 - Cost, as restated 1,380,799 626,005

Accumulated amortisation, as previously stated (110,836) (83,026)

Common control entities acquired in 2009

(Note 5(a)) (54) - Accumulated amortisation, as restated (110,890) (83,026)

Net book amount 1,269,909 542,979 Company and its subsidiaries Company Year ended 31 December 2009 Opening net 1,269,909 542,979 book amount Transfers 230,605 - from CIP Additions 35,394 28,616 Write-off (243) - Sales to - (19,080) subsidiaries Amortisation (12,156) (8,085) Closing net book amount 1,523,509 544,430 At 31 December 2009 Cost 1,646,555 635,329 Accumulated amortisation (123,046) (90,899) Net book amount 1,523,509 544,430 Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008 Outside of Hong Kong, held on: Leases within 10 years 107 122 - -Leases between 10 to 50 years 1,326,627 1,072,393 544,430 542,979Leases over 50 years 196,775 197,394 - - 1,523,509 1,269,909 544,430 542,97912. DEFERRED HOUSING BENEFITSPursuant to the "Proposal on Further Reform of Housing Policy in Urban Areas"of the State and the implementation schemes for staff quarters issued by therelevant provincial and municipal governments, the Company implemented a schemefor selling staff quarters in 1999. Under the scheme, the Company provideshousing benefits to its staff to buy staff quarters from the Company atpreferential prices. The offer price is determined based on their length ofservices and positions pursuant to the prevailing local regulations. Thedeferred housing benefits represent the difference between the net book amountof the staff quarters sold and the proceeds collected from the employees, andare amortised over the remaining average service life of the relevantemployees.During 2005 to 2007, the Company and some of its subsidiaries carried outanother housing benefit scheme - "Monetary Housing Benefit Scheme" upon theapproval from Housing Reform Office of the local government. Under the MonetaryHousing Benefit Scheme, the Company and its subsidiaries provided monetaryhousing subsidies to those employees whose houses did not meet the standardthey should have enjoyed based on their length of services and their positionsand rankings. There is no such subsidy payment in year 2009 (2008: nil). Thebenefits were amortised over the remaining average service life of the relevantemployees. Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Cost Beginning of year 662,532 662,532 454,630 454,630 End of year 662,532 662,532 454,630 454,630Accumulated amortisation Beginning of year (469,063) (401,587) (408,549) (362,456) Charge for the year (30,085) (67,476) (8,608) (46,093) End of year (499,148) (469,063) (417,157) (408,549)Net book amount End of year 163,384 193,469 37,473 46,081 Beginning of year 193,469 260,945 46,081 92,17413. INTANGIBLE ASSETS Company and its subsidiaries Mining Resource Technology Computer Goodwill rights use know-how software Total rights At 1 January 2008 Cost, as previously stated 138,824 - 28,646 - 39,272 206,742 Common control entities acquired in 2009 (Note 5 (a)) - - - - 290 290 Cost, as restated 138,824 - 28,646 - 39,562 207,032 Accumulated amortization, as previously stated - - (5,846) - (10,384) (16,230) Common control entities acquired in 2009 - - - - (15) (15)(Note 5(a)) Accumulated amortization, as restated - - (5,846) - (10,399) (16,245) Net book amount 138,824 - 22,800 - 29,163 190,787 Year ended 31 December 2008 Opening net book amount 138,824 - 22,800 - 29,163 190,787 Acquisitions of subsidiaries 477,684 1,345,448 - - 9,425 1,832,557 Additions - 90,000 - 554,156 6,412 650,568 Amortisation - - (3,665) - (9,936) (13,601) Transfer to disposal group classified as held for sale (83,712) (545,129) - - - (628,841) Closing net book amount 532,796 890,319 19,135 554,156 35,064 2,031,470 At 31 December 2008 Cost 532,796 890,319 28,646 554,156 55,399 2,061,316 Accumulated amortisation - - (9,511) - (20,335) (29,846) Net book amount 532,796 890,319 19,135 554,156 35,064 2,031,470 Company and its subsidiaries Mining Resource Technology Computer Goodwill rights use know-how software Total rights At 1 January 2009 Cost, as previously stated 532,796 890,319 28,646 554,156 55,058 2,060,975 Common control entities acquired in 2009 - - - - 341 341 (Note 5(a)) Cost, as restated 532,796 890,319 28,646 554,156 55,399 2,061,316 Accumulated amortization, as previously stated - - (9,511) - (20,306) (29,817) Common control entities acquired in 2009 - - - - (29) (29)(Note 5 (a)) Accumulated amortization, as restated - - (9,511) - (20,335) (29,846) Net book amount 532,796 890,319 19,135 554,156 35,064 2,031,470 Year ended 31 December 2009 Opening net book amount 532,796 890,319 19,135 554,156 35,064 2,031,470

Transfer in / (out) - 142,070 - (65,566) - 76,504 Acquisitions of subsidiaries 949 - - - 1,823 2,772 Additions - 17 - - 24,037 24,054 Amortisation - - (3,665) - (8,299) (11,964) Closing net book amount 533,745 1,032,406 15,470 488,590 52,625 2,122,836 At 31 December 2009

Cost 533,745 1,032,406 28,646 488,590 81,259 2,164,646 Accumulated amortisation - - (13,176) - (28,634) (41,810) Net book amount 533,745 1,032,406 15,470 488,590 52,625 2,122,836 Company Technology Computer Goodwill know-how software Total At 1 January 2008 Cost 33,561 - 7,002 40,563 Accumulated amortization - - (1,670) (1,670) Net book amount 33,561 - 5,332 38,893 Year ended 31 December 2008 Opening net book amount 33,561 - 5,332 38,893 Additions - 554,156 450 554,606 Amortisation - - (5,555) (5,555) Closing net book amount 33,561 554,156 227 587,944 At 31 December 2008 Cost 33,561 554,156 7,452 595,169 Accumulated amortisation - - (7,225) (7,225) Net book amount 33,561 554,156 227 587,944 Year ended 31 December 2009 Opening net book amount 33,561 554,156 227 587,944 Additions - - 644 644 Sales to subsidiaries - (554,156) (10) (554,166) Amortisation - - (64) (64) Closing net book amount 33,561 - 797 34,358 At 31 December 2009 Cost 33,561 - 895 34,456 Accumulated amortisation - - (98) (98) Net book amount 33,561 - 797 34,358

Substantially all the amortisation expense is charged to operating costs for both years ended 31 December 2008 and 2009.

Impairment tests for goodwill

Goodwill is allocated to the cash-generating units of the Company and its subsidiaries identified according to operating segments. A segment level summary of goodwill allocation is presented below:

Company and its subsidiaries 31 December 2009 2008 Power Power generation Coal generation Coal segment segment segment segment Zhiganglaka Company 273,795 - 273,795 - Zhunge'er Mining Company - 120,177 - 120,177 Xinyu Power Company 104,361 - 104,361 - Zhangjiakou Power Plant No. 2 generator 33,561 - 33,561 - Tongzhou Technology 949 - - - Hohhot Thermal Company 902 - 902 - 413,568 120,177 412,619 120,177 Company 31 December 2009 2008 Power Power generation generation segment segment Zhangjiakou Power Plant No. 2 generator 33,561 33,561 The recoverable amounts of cash-generating units are determined based onvalue-in-use calculations. These calculations use pre-tax cash flow projectionsbased on financial budgets approved by management covering no more thanfive-year period ("Periods covered"). Management of these cash-generating unitsexpect cash flows beyond the respective projection periods below will besimilar to that of last year of respective projection based on existingproduction capacity.

Periods covered and pre-tax discount rates applied in respective value-in-use calculations are as follows:

Periods covered Discount rates appliedZhiganglaka Company 5 years 7.92%Zhunge'er Mining Company 3 years 17.31%Xinyu Power Company 2 years 6.94%Others 1 - 5 years 7.31%-9.79%Key assumptions used for value-in-use calculations of power generation unitsinclude the expected tariff rates, demands of electricity in specific regionswhere these power plants are located and fuel cost. Key assumptions used forvalue-in-use calculations of coal mining entity include the expected coal priceand annual production capacity. Management determined these key assumptionsbased on past performance and its expectations on market development. Thediscount rates used are pre-tax and reflect specific risks relating toindividual cash-generating units. Management believe that any reasonablypossible change in any of these key assumptions on which recoverable amounts ofindividual cash-generating units are based may cause carrying amounts ofindividual cash-generating units to exceed their recoverable amounts.

Based on the assessments, the Directors believe that there is no impairment on the goodwill at 31 December 2008 and 2009.

14. LONG-TERM ENTRUSTED LOANS TO RELATED PARTIES

Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008

Entrusted loans to subsidiaries (a) - - 3,764,728 5,162,551 Entrusted loans to associates (b) 130,194 50,104 130,194 50,104

130,194 50,104 3,894,922 5,212,655Notes:

(a) As at 31 December 2009, the long-term entrusted loans to subsidiaries carried annual interest rates at 2.86% to 7.66% (2008: 5.56% to 7.66%). There are neither pledges nor guarantees received on these loans.

(b) As at 31 December 2009, the long-term entrusted loans to associates carried annual interest rates at 4.86% to 5.56% (2008: 5.56%). There are neither pledges nor guarantees received on these loans.

As at 31 December 2008 and 2009, no impairment was provided as all the borrowers do not have default history and no other indicator of impairment was noted. All long-term entrusted loans will be due within 3 years from 31 December 2009 (2008: 3 years).

15. INVENTORIES Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Fuel - production 744,681 1,557,726 59,958 234,711Spare parts and consumable supplies 553,519 585,055 134,360 141,714Other raw materials 53,506 - - -Finished goods - fuel 491,644 - - -

Finished goods - chemical products 11,827 - -

- 1,855,177 2,142,781 194,318 376,42516. SHORT-TERM ENTRUSTED LOANS TO RELEATED PARTIES Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008

Entrusted loans to subsidiaries (a) - - - 260,529

Entrusted loans to ultimate parent company (b) 17,000 31,330 - - 17,000 31,330 - 260,529Notes:

(a) As at 31 December 2008, the short-term entrusted loans to subsidiaries were due within one year and carried annual interest rates at 6.56% to 7.47%. As at 31 December 2009, all such loans were repaid.

(b) As at 31 December 2009, the short-term entrusted loans to ultimate parent company were due within one year and carried annual interest rate at 1.44% (2008: 1.44%).

As at 31 December 2008 and 2009, there were neither pledges nor guarantees on loans above. No impairment was provided as all the borrowers do not have default history and no other indicator of impairment was noted.

17. PREPAYMENTS AND OTHER RECEIVABLES

Prepayments and other receivables comprised the following:

Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008

Prepayments for fuel 1,937,168 839,140 684,327 86,765 and materials Prepayments for 62,605 301,535 - 135,580 construction VAT recoverables 1,883,613 - 66,657 - Prepayment for an 1,289,000 - 1,289,000 - investment (a) Other taxes 16,201 - - - recoverable Prepayments to 71,073 - 71,073 - related parties Others 57,231 88,860 6,688 1,767 Total prepayments 5,316,891 1,229,535 2,117,745 224,112 Advanced payments for 438,945 440,702 26,708 169,626 construction Receivables from disposals of property, plant and equipment 108,208 584,942 - - Staff advances 25,959 14,262 2,688 786 Staff housing maintenance fund deposits 25,576 21,205 24,071 21,205 Receivables from sales of materials 50,414 84,540 11,855 14,365 Receivables from related parties 429,395 53,794 5,807,471 2,229,863 Others 183,716 61,735 50,577 13,506 Total other receivables 1,262,213 1,261,180 5,923,370 2,449,351 Less: provision for doubtful debts (4,203) (4,203) (1,833) (1,833) Total other receivables, net 1,258,010 1,256,977 5,921,537 2,447,518 Total prepayments and other receivables 6,574,901 2,486,512 8,039,282 2,671,630 Note:

(a) As at 31 December 2009, this represented prepayment for investment in Yuneng (Group) Co., Ltd. ("Yuneng Group"). Related acquisition became effective in January 2010 (Note 43(a)).

Other receivables do not contain significant impaired assets. Movements on the provision for doubtful debts are as follows:

Company and its subsidiaries CompanyAt 1 January 2008 and 2009 4,203 1,833At 31 December 2008 and 2009 4,203 1,833As at 31 December 2008 and 2009, substantially all other receivables were notpast due except for other receivables stated below which were deemed to beimpaired. The individually impaired receivables have been long outstandingwithout any repayment agreements in place or possibility of renegotiation. Itwas assessed that a portion of these receivables is expected to be recovered.The ageing of such other receivables was as follows: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Between one to two years - 24,195 - -Between two to three years 1,920 - - -Over three years 1,835 1,835 1,833 1,833 3,755 26,030 1,833 1,833

18. ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable of the Company and its subsidiaries primarily represent receivables from regional or provincial grid companies for tariff revenue and coal sales customers. These receivables are unsecured and non-interest bearing.

Accounts and notes receivable comprised the following: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008

Accounts receivable from third

parties 6,459,139 3,742,832 1,184,183

952,052

Notes receivable from third parties 140,273 384,523 - 300,800 Accounts and notes receivable from

related parties 35,505 185,342 - 148,112Total accounts and notes receivable 6,634,917 4,312,697 1,184,183 1,400,964

Less: provision for doubtful debts - - - -

Total accounts and notes receivable 6,634,917 4,312,697 1,184,183 1,400,964As at 31 December 2009, certain accounts and notes receivable of the Companyand its subsidiaries were pledged for certain loans amounted to Rmb272.60million (2008: Rmb224.96 million), including which, the Company applied notesreceivable in securing certain loans amounting to Rmb300 million in 2008. Inaddition, the Company and certain subsidiaries also applied tariff collectionrights in securing loans. Please refer to Notes 22 and 27 for details.The Company and its subsidiaries usually grant credit period of approximately 1month to local power grid customers and coal purchase customers from the monthend after sales and sale transactions made, respectively. Ageing analysis of accounts and notes receivable was as follows: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Within one year 6,447,885 4,309,686 1,098,958 1,397,953

Between one to two years 186,396 3,011 85,225 3,011 Between two to three years 636 -

- - 6,634,917 4,312,697 1,184,183 1,400,964As at 31 December 2009, there was no indication of impairment relating toaccounts receivable which were past due and no provision was made. Accounts andnotes receivable stated below were past due but not impaired. The major portionof past due accounts and notes receivable were the accounts receivable due fromcertain local thermal power companies, and management believes that suchreceivables can be recovered because such local thermal companies had no recenthistory of default. Ageing analysis of these accounts receivable was asfollows: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Between one to two years 186,396 3,011 85,225 3,011Between two to three years 636 - - - 187,032 3,011 85,225 3,011As at 31 December 2009, accounts and notes receivables from the top 5 debtorsamounted to approximately Rmb4.058 billion (2008: Rmb3.172 billion),representing 61.17% (2008: 73.54%) of the total accounts and notes receivables.19. BANK BALANCES AND CASH Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Bank deposits 1,358,163 4,088,696 286,343 2,053,403Deposits with Datang Finance 147,097 987,489 4,962 3Cash on hand 1,175 1,847 284 479Cash and cash equivalents 1,506,435 5,078,032 291,589 2,053,885Restricted cash - 460,477 - -

Fixed deposits over three months - 30,000 - - 1,506,435 5,568,509 291,589

2,053,885

Bank balances and cash of the Company and its subsidiaries and the Company were denominated in the following currencies:

Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Rmb 1,343,019 5,447,755 139,861 1,936,411USD (Rmb equivalent) 163,124 120,754 151,728 117,474HKD (Rmb equivalent) 152 - - -Euro (Rmb equivalent) 140 - - - 1,506,435 5,568,509 291,589 2,053,88520. SHARE CAPITALThe movement of issued and fully paid up share capital of the Company duringthe year is as follows: Company and Company and its subsidiaries 2009 2008 Number of Share Number of Share shares capital shares capital ‘000 ‘000

Beginning of year 11,780,038 11,780,038 11,734,083 11,734,083 Conversion of convertible bonds

- - 45,955 45,955End of year 11,780,038 11,780,038 11,780,038 11,780,038As at 31 December 2008 and 2009, all issued shares are registered and fullypaid, divided into 11,780,037,578 (2008: 11,780,037,578) shares of par value atRMB1.00 par value each, comprised 8,464,360,000 A shares and 3,315,677,578 Hshares. Both A shares and H shares rank pari passu to each other.

As at 31 December 2008, 4,051,599,760 A shares were subject to lock-up periods and were not freely tradable. As at 31 December 2009, such A shares become freely tradable following the expiries of respective lock-up periods.

21. RESERVES

For the tables, please visit:http://www.prnasia.com/sa/attachment/2010/05/20100504106680.pdf

(a) Capital reserve

Capital reserve mainly comprised: (i) the difference between the nominal amountof the domestic shares issued and the fair value of the net assets injectedinto the Company during its formation and also proceeds from the issue of Hshares and A shares in excess of their par value, net of issuance expenses in1997 and 2006; and (ii) the premium from convertible bonds converted to shares.This reserve is non-distributable.

(b) Statutory surplus reserve

In accordance with the relevant laws and regulations of the PRC and thearticles of association of the Company, the Company is required to appropriate10% of its net profit under PRC GAAP, after offsetting any prior years' losses,to the statutory surplus reserve. When the balance of such a reserve reaches50% of the Company's share capital, any further appropriation is optional.

The statutory surplus reserve can be used to offset prior years' losses, if any, and may be converted into share capital by issuing new shares to shareholders in proportion to their existing shareholding or by increasing the par value of the shares currently held by them, provided that the remaining balance of the reserve after such an issue is not less than 25% of share capital. The statutory surplus reserve is non-distributable.

(c) Discretionary surplus reserve

Pursuant to the articles of association of the Company, the appropriation ofprofit to the discretionary surplus reserve and its utilisation are made inaccordance with the recommendation of the Board of Directors and is subject toshareholders' approval at their general meeting.The discretionary surplus reserve can be used to offset prior years' losses, ifany, and may be converted into share capital by issuing new shares toshareholders in proportion to their existing shareholding or by increasing thepar value of the shares currently held by them. The discretionary surplusreserve is distributable.On 30 March 2009, the Board of Directors proposed an appropriation of profit ofapproximately Rmb1,065.496 million to the discretionary surplus reserve for theyear ended 31 December 2008. This proposed profit appropriation was approved bythe shareholders in their general meeting dated 3 June 2009. There is noproposal on allocation to this reserve in the current year.

(d) Restricted reserve

Pursuant to relevant regulations and guidance issued by MOF, certain deferredhousing benefits are charged to equity directly when incurred under PRC GAAP.In order to reflect such undistributable retained earnings in these financialstatements prepared under IFRS, a restricted reserve is set up to reduce thebalance of retained earnings with an amount equals to the residual balance ofdeferred housing benefits, net of tax. For the year ended 31 December 2009,approximately Rmb8.608 million (2008: Rmb41.107 million) had been transferredfrom restricted reserve to retained earnings.Pursuant to relevant PRC regulations, coal mining companies are required to setaside an amount to a fund for future development and work safety which theytransferred certain amounts from retained earnings to restricted reserve. Thefund can then be used for future development and work safety of the coal miningoperations, and is not available for distribution to shareholders. Whenqualifying development expenditure and improvements of safety incurred, anequivalent amount is transferred from restricted reserve to retained earnings.For the year ended 31 December 2009, approximately Rmb47.313 million (2008:Rmb32.138 million) had been set aside to the fund from retained earnings torestricted reserve, while approximately Rmb0.497 million (2008: nil) wasexpensed off for developments and safety improvements from restricted reserveto retained earnings.

(e) Basis for profit appropriation

In accordance with the articles of association of the Company, distributable profit of the Company is derived based on the lower of profit determined in accordance with PRC GAAP and IFRS.

The retained earnings attributable to shareholders of the Company is dealt with in these financial statements of the Company to the extent of Rmb1,725.111 million as at 31 December 2009.

22. LONG-TERM LOANS

Long-term loans are as follows: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Long-term bank loans (a) 99,870,956 73,245,093 7,364,000 13,910,000Other long-term loans (b) 6,478,027 2,173,232 4,000,000 500,000Long-term entrusted loan (c) - 110,000 - - 106,348,983 75,528,325 11,364,000

14,410,000

Less: amounts due within

one year included under

current liabilities (6,842,438) (6,501,903) (954,400) (712,500) 99,506,545 69,026,422 10,409,600 13,697,500

Estimated fair value of

long-term loans 106,353,555 75,549,206 11,364,000 14,410,000

The estimated fair value of long-term loans (including current portion) iscalculated based on discounted cash flow using applicable discount rates fromprevailing market interest rates offered to the Company and its subsidiariesfor loans with substantially the same characteristics and maturity dates. Theannual discount rates applied as at 31 December 2009 were ranging from 1.13% to7.83% (2008: 3.29% to 7.83%). The estimated fair values of loans due within 1year approximate their carrying amounts.

(a) Long-term bank loans

Long-term bank loans of the Company and its subsidiaries

31 December 2009 Less: amounts Foreign Rmb due within Non-current Annual currency equivalent one year portion interest ‘000 rate Unsecured loans- Rmb denominated 48,684,806 (2,145,364) 46,539,442 4.05%-7.56%Guaranteed loans (i)- Rmb denominated 7,736,280 (1,718,140) 6,018,140 3.60%-7.56%- USD denominated 25,577 174,648 (174,648) - Fixed interest rate 20,993 143,347 (143,347) -

4.14%

Floating interest rate 4,584 31,301 (31,301) - Libor+1.2%Secured loans (ii)- Rmb denominated 43,275,222 (2,693,466) 40,581,756 4.78%-7.83% 99,870,956 (6,731,618) 93,139,338

Long-term bank loans of the Company and its subsidiaries (Continued)

31 December 2008 Less: amounts Foreign Rmb due within Non-current Annual currency equivalent one year portion interest ‘000 rate Unsecured loans- Rmb denominated 29,897,070 (3,069,770) 26,827,300 4.86%-7.74%Guaranteed Loans (i)- Rmb denominated 8,413,850 (1,428,170) 6,985,680 3.60%-7.83%- USD denominated 73,564 502,783 (327,971) 174,812 Fixed interest rate 62,980 430,445 (286,963) 143,482 4.14% Floating interest rate 10,584 72,338 (41,008) 31,330 Libor+1.2%Secured loans (ii)- Rmb denominated 34,431,390 (1,257,585) 33,173,805 5.10%-7.83% 73,245,093 (6,083,496) 67,161,597Notes:(i) As at 31 December 2009, long-term loans of approximately Rmb6,339 million,Rmb902 million and Rmb670 million (2008: Rmb6,767 million, Rmb936 million andRmb1,214 million) were guaranteed by the Company, China Datang and minorityinterests of certain subsidiaries, respectively. In addition, as at 31 December2009, certain long-term bank loans of Rmb1,692 million (2008: Rmb477 million)guaranteed by the Company were counter-guaranteed by minority interests of asubsidiary.

(ii) Certain long-term bank loans of Rmb1,730 million (2008: Rmb810 million) were secured by the following assets:

31 December 2009 2008Bank balances and cash - 8,277Accounts and notes receivable 272,599 244,960Prepayments and other receivables - 14,168Inventories - 436Property, plant and equipment 405,208 1,706,359 677,807 1,974,200As at 31 December 2009, long-term loans of Rmb41,545 million (2008: Rmb33,591million) were secured by tariff collection rights of the Company and certainsubsidiaries.

In addition, as at 31 December 2008, a long-term loan of Rmb30 million was secured by equity interest of a subsidiary. This loan was repaid during 2009.

Long-term bank loans of the Company

As at 31 December 2009, long-term bank loans of Rmb6,864 million (2008:Rmb13,910 million) of the Company were denominated in Rmb, unsecured and borevariable interest rates ranging from 4.86% to 6.93% (2008: 4.86% to 7.12%) perannum. As at 31 December 2009, long-term bank loans of Rmb500 million (2008: nil) ofthe Company were denominated in Rmb and secured by tariff collection right ofcertain branches and bore annual variable interest rate at 5.05% (2008: N/A).

(b) Other long-term loans

Other long-term loans of the Company and its subsidiaries 31 December 2009 Less: amounts Foreign Rmb due within Non-current Annual currency equivalent one year portion interest ‘000 rate Unsecured loans (i)- Rmb denominated 4,200,000 - 4,200,000 4.86%-7.35%Guaranteed loans- Rmb denominated (ii) 1,220,000 - 1,220,000 4.86%- USD denominated (iii) 154,950 1,058,027 (110,820) 947,207 1.13%-3.29% 6,478,027 (110,820) 6,367,207 31 December 2008 Less: amounts Foreign Rmb due within Non-current Annual currency equivalent one year portion interest ‘000 rate Unsecured loans (i)- Rmb denominated 810,000 - 810,000 4.86%-7.35%Guaranteed loans- Rmb denominated (ii) 203,500 (203,500) - 6.80%- USD denominated (iii) 169,685 1,159,732 (104,907) 1,054,825 3.29% 2,173,232 (308,407) 1,864,825Notes:(i) As at 31 December 2009, unsecured loans of Rmb1,200 million (2008: Rmb810million) were borrowed from Datang Finance, a non-bank financial institutionand an associate of the Company while unsecured loans of Rmb3,000 million wereborrowed from China Credit Trust Company Limited ("China Credit Trust"), anon-bank financial institution.(ii) As at 31 December 2009, loans of Rmb220 million (2008: Rmb204 million)were borrowed by the Company and its subsidiaries from Datang Finance whileRmb1,000 million (2008: nil) were from Pingan Trust Company Limited, a non-bankfinancial institution, all of them were guaranteed by the Company.

In addition, as at 31 December 2009, certain long-term loans of Rmb549 million (2008: Rmb92 million) guaranteed by the Company were counter-guaranteed by minority interests of a subsidiary.

(iii) It represented a loan borrowed by MOF from International Bank forReconstruction and Development ("World Bank") and on-lent to a subsidiary ofthe Company for the construction of electricity utility plant, with thematurities from 1998 to 2017. The effective annual interest rate was LIBOR BaseRate plus LIBOR Total Spread as defined in the loan agreement between MOF andWorld Bank. China Datang provided guarantees on 60% of the loan balance.

Other long-term loans of the Company

As at 31 December 2009, unsecured long-term loans of Rmb1,000 million (2008: Rmb500 million) were borrowed from Datang Finance and bore interest rate of 4.86% (2008: 4.86%) per annum while unsecured long-term loans of Rmb3,000 million (2008: nil) were borrowed from China Credit Trust and bore interest rate of 5.35% (2008: N/A) per annum.

As at 31 December 2008 and 2009, all other long-term loans of the Company were denominated in Rmb.

(c) Long-term entrusted loanAs at 31 December 2008, long-term entrusted loan represented an unsecuredRmb-denominated loan borrowed by Hohhot Thermal Company from Tuoketuo GuonengInvestment Company Limited through Bank of Communication Beijing Branch,bearing annual interest rate of 7.47%. As at 31 December 2009, this loan wasfully repaid.(d) Loan repayment schedules Company and its subsidiaries Long-term Other Long-term bank loans long-term entrusted loan loans 31 December 31 December 31 December 2009 2008 2009 2008 2009 2008Within one year 6,731,618 6,083,496 110,820 308,407 - 110,000Between one and two years 18,398,383 13,585,237 1,300,820 104,823 - -Between two and five years 34,827,641 23,437,415 4,552,460 1,014,468 - -Over five years 39,913,314 30,138,945 513,927 745,534 - - 99,870,956 73,245,093 6,478,027 2,173,232 - 110,000 Company Long-term bank loans Other long-term loans 31 December 31 December 2009 2008 2009 2008Within one year 954,400 712,500 - -Between one and two years 2,354,400 4,882,500 - -Between two and five years 2,283,200 4,857,500 4,000,000 500,000Over five years 1,772,000 3,457,500 - - 7,364,000 13,910,000 4,000,000 500,000 Analysis of the above is as follows: Company and Company its subsidiaries 31 December 31 December 2009 2008 2009 2008 Long-term bank loans -Wholly repayables 22,482,383 17,343,463 4,100,000 5,300,000 within five years -Not wholly repayables within five years 77,388,573 55,901,630 3,264,000 8,610,000 99,870,956 73,245,093 7,364,000 13,910,000 Other long-term loans -Wholly repayables 5,410,000 1,003,500 4,000,000 500,000 within five years -Not wholly repayables within five years 1,068,027 1,169,732 - - 6,478,027 2,173,232 4,000,000 500,000 Long-term entrusted loans

-Wholly repayable within - 110,000 - -

five years 23. LONG-TERM BONDS Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Medium-term notes (a) 2,961,836 - 2,961,836 -Corporate bonds (b) 2,976,708 - 2,976,708 - 5,938,544 - 5,938,544 -Estimated fair value of long-term bonds 6,138,705 - 6,138,705 -Notes:(a) Medium-term notes represented unsecured notes issued by the Company ininter-bank market on 3 March 2009 with par value of Rmb100 each totalling Rmb3billion. Such medium-term notes are of 5-year term with fixed annual coupon andeffective interest rates of 4.10% and 4.44%, respectively. As at 31 December2009, accrued interest for these notes amounted to approximately Rmb109million.(b) Unsecured corporate bonds were issued by the Company on 19 August 2009with par value of Rmb100 each totalling Rmb3 billion. Such bonds are of 10-yearterm with fixed annual coupon and effective interest rates of 5.00% and 5.10%,respectively. As at 31 December 2009, accrued interest for these bonds amountedto approximately Rmb57 million.

As at 31 December 2009, the fair value of corporate bonds above are derived from quoted price available in the market while the fair value of medium-term notes above are derived from discounted future cash flows using annual bond interest rate with similar terms of 3.76%.

24. DEFERRED INCOME

The Company and its subsidiaries received government grants from local environmental protection authorities for undertaking approved environmental protection projects. Amortisation of deferred income for the year amounted to Rmb40.131 million (2008: Rmb14.923 million).

25. OTHER LONG-TERM LIABILITIES Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008

Finance lease payables* 4,115,364 4,454,153 - - Others

110,375 75,630 36,000 - 4,225,739 4,529,783 36,000 -

Less: amounts due within

one year included under

current liabilities (524,574) (359,686) (9,000) -

3,701,165 4,170,097 27,000 -

* Finance lease payables

Finance lease payables represented the minimum lease payments net of unrecognised finance costs. Including in all the finance lease arrangements, finance lease liabilities of certain subsidiaries were guaranteed by the Company amounted to Rmb1,275.901 million (2008: Rmb1,388.509 million) while certain subsidiaries were also required to pay restricted deposits of Rmb155.117 million (2008: Rmb165.943 million) which such deposits will be refunded after settlements of last instalments of respective finance lease arrangements.

The present value of finance lease liabilities is as follows:

Company and its subsidiaries 31 December 2009 2008Within one year 491,187 359,686Between two and five years 1,819,131 1,999,574Over five years 1,805,046 2,094,893 4,115,364 4,454,153

Please refer to Note 3(a) for details of maturity disclosures on gross finance lease liabilities - minimum lease payments.

26. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities comprised:

Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008 Fuel and materials payable to third parties 5,251,884 3,328,418 1,143,457 840,794 Notes payable to third 697,703 1,470,648 - - parties Fuel and materials payable to related parties 65,932 22,657 10,773 22,657 Total accounts and notes 6,015,519 4,821,723 1,154,230 863,451 payable Construction payables to 6,320,814 7,196,682 79,303 1,738,082third parties Acquisition considerations 143,796 126,768 - 45,000payable Amounts received in advance 146,277 104,355 - 240,000 Salaries and welfares 32,825 27,772 6,010 7,840 payable Interests payable 356,389 421,878 178,045 233,653 Other payables to related 115,277 46,484 142,618 14,644 parties Others 909,123 483,898 93,052 367,265 14,040,020 13,229,560 1,653,258 3,509,935 The ageing analysis of the accounts and notes payable is as follows: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Within one year 5,716,659 4,536,405 1,143,509 834,169Between one and two years 127,756 76,974 3,751

25,517

Between two and three years 43,857 202,068 5,272 1,460Over three years 127,247 6,276 1,698 2,305 6,015,519 4,821,723 1,154,230 863,45127. SHORT-TERM LOANS Short-term loans are as follows: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Short-term bank loans (a) 16,648,453 25,982,130 500,000 12,802,587Other short-term loans (b) 2,880,570 3,621,978 50,000 500,000

Short-term entrusted loan (c) 40,000 - - - 19,569,023 29,604,108 550,000

13,302,587

(a) Short-term bank loans

Short-term bank loans of the Company and its subsidiaries 31 December 2009 Foreign Rmb Annual currency equivalent interest rate ‘000Unsecured loans- Rmb denominated 13,847,472 3.00%-7.47%- HKD denominated 61,144 53,836 Libor+1.7%Guaranteed loans- Rmb denominated (i) 1,863,700 4.78%-7.47%- HKD denominated (ii) 700,000 616,336 Libor+1.4%Secured loans- Rmb denominated (iii) 220,000 2.10%-6.57%Discounted notes receivable- Rmb denominated (iv) 47,109 2.40%-2.70% 16,648,453 31 December 2008 Foreign Rmb Annual currency equivalent interest rate ‘000Unsecured loans- Rmb denominated 19,438,876 4.78%-7.47%- USD denominated 9,600 65,612 4.00% / USD 3 months Libor +350 BPGuaranteed loans- Rmb denominated (i) 5,277,000 5.99%-7.74%- HKD denominated (ii) 700,000 617,323 4.35%Secured loans- Rmb denominated (iii) 268,800 5.04%-6.03%Discounted notes receivable- Rmb denominated (iv) 314,519 0%-0.37% 25,982,130Notes:

(i) As at 31 December 2009, the Company provided guarantees for short-termbank loans, including which Rmb801 million (2008: Rmb927 million) of which werecounter-guaranteed by the minority interests of certain subsidiaries at theirrespective equity interests.

(ii) As at 31 December 2008 and 2009, the HKD denominated short-term bank loans were guaranteed by the headquarters of Bank of China and counter-guaranteed by the Company.

(iii) As at 31 December 2009, certain short-term bank loans of Rmb150.00 million (2008: Rmb252.50 million) were secured by accounts receivable of certain subsidiaries.

As at 31 December 2009, certain short-term bank loans of Rmb70.00 million (2008: Rmb16.30 million) were secured by tariff collection rights of certain subsidiaries.

(iv) The amount represented the discounted notes receivable with recourse. Interest on certain discounted notes is 0% as such interest is borne by the drawers.

Short-term bank loans of the Company

As at 31 December 2009, short-term bank loans approximately Rmb500 million (2008: Rmb12,503 million) were unsecured and bore variable interest rates ranging from 4.37% to 7.13% (2008: 4.86% to 7.47%) per annum.

In addition, other short-term bank loans represented the discounted notes receivable with recourse. Related interest on discounted notes receivable is 0% as such interest is borne by the drawers.

As at 31 December 2008 and 2009, all short-term loans of the Company were denominated in Rmb.

(b) Other short-term loans - Rmb denominated

Other short-term loans of the Company and its subsidiaries

31 December 2009 2008Unsecured loans- Datang Finance (i) 2,310,570 2,524,000- China Credit Trust (ii) 570,000 -

- Jilin Province Trust and Investment

Co., Ltd.

("Jilin Trust") (iii) - 500,000Guaranteed loans- CITIC Trust and Investment Co. Ltd. ("CITIC") (iv) - 497,978

- Zhongrong International Trust Company

("Zhongrong Trust") (v) - 100,000 2,880,570 3,621,978Notes:

(i) These represented borrowings from Datang Finance bearing annual interest rates at 4.37% to 6.72% (2008: 4.78% to 6.72%).

(ii) These represented borrowings from China Credit Trust bearing annual interest rates at 3.88% to 4.25% (2008: N/A).

(iii) This represented a borrowing from Jilin Trust bearing annual interest rate of 7.47%. As at 31 December 2009, this loan was fully repaid.

(iv) This represented a borrowing acquired by Lixianjiang Hydropower Company from CITIC, which is guaranteed by China Construction Bank bearing annual interest rate of 7.67%. As at 31 December 2009, this loan was fully repaid.

(v) This represented a borrowing from Zhongrong Trust, for which theIndustrial and Commercial Bank of China Shanxi Branch committed to provide aloan facility to Yuncheng Power Company for the repayments of the borrowingsupon maturity. This borrowing carried annual interest rate of 7.47%. As at 31December 2009, this loan was fully repaid.

Other short-term loans of the Company

As at 31 December 2009, all the other short-term loans were borrowed from Datang Finance and they were unsecured and bore annual interest rates at 4.37% to 5.43% (2008: 5.43%).

(c) Short-term entrusted loan

As at 31 December 2009, short-term entrusted loan represented an unsecured Rmb-denominated loan borrowed by Hulunbei'er Fertilizer from China Datang through Datang Finance, bearing annual interest rate of 4.35%.

28. SHORT-TERM BONDS Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Short-term bonds - 3,500,000 - 3,500,000

As at 31 December 2008, short-term bonds represented unsecured bonds issued bythe Company on 6 October 2008 at par value of Rmb100 each with annual couponand effective interest rate of 4.68% and matured within one year. Such bondswere fully repaid during 2009.

29. EMPLOYEE BENEFITS

Retirement benefits

The Company and its subsidiaries are required to make specific contributions tothe state-sponsored retirement plan at a rate of 20% (2008: 20%) of thespecified salaries of the PRC employees. The PRC government is responsible forthe pension liability to the retired employees. The PRC employees of theCompany and its subsidiaries are entitled to a monthly pension upon theirretirements.In addition, the Company and its subsidiaries have implemented a supplementarydefined contribution retirement scheme. Under this scheme, the employees of theCompany and its subsidiaries make a specified contribution based on theirservice duration. The Company and its subsidiaries are required to make acontribution equal to 2 to 3 times of the staff's contributions. The Companyand its subsidiaries may, at their discretion, provide additional contributionsto the retirement fund depending on the operating results of the year. Theemployees will receive the total contributions and any returns thereon, upontheir retirements.

The total retirement costs incurred by the Company and its subsidiaries during the year ended 31 December 2009 pursuant to these arrangements amounted to approximately Rmb230.794 million (2008: Rmb205.357 million).

Housing benefits

Apart from the housing benefits and monetary subsidies (Note 12), in accordancewith the PRC housing reform regulations, the Company and its subsidiaries arerequired to make contributions to the state-sponsored housing fund at rates 10%to 20% (2008: 10% to 20%) of the specified salaries of the PRC employees. Atthe same time, the employees are required to make a contribution based oncertain percentages. The employees are entitled to claim the entire sum of thefund under certain specified withdrawal circumstances. The Company and itssubsidiaries have no further obligations for housing benefits beyond thecontributions made above. For the year ended 31 December 2009, the Company andits subsidiaries provided approximately Rmb138.300 million (2008: Rmb111.427million) to the fund.

30. OPERATING REVENUE AND SEGMENT REPORTING

2009 2008Sales of electricity 42,043,163 35,990,410Heat supply 382,982 220,368Sales of coal 5,143,707 384,797Sales of chemical products 198,817 62Others 174,254 304,428 47,942,923 36,900,065The senior management performs the function of CODM and reviews the internalreporting of the Company and its subsidiaries in order to assess performanceand allocate resources. Senior management has determined the operating segmentsbased on these reports.Senior management considers the business from a product perspective. Seniormanagement primarily assesses the performance of power generation, chemical andcoal separately. Other operating activities include investments in financialservices and others, and are included in "all other segments".

Senior management assesses the performance of the operating segments based on a measure of profit before income tax expense prepared under PRC GAAP.

Segment assets exclude income tax recoverables, deferred income tax assets andavailable-for-sale investments. Segment liabilities exclude current income taxliabilities and deferred income tax liabilities. Sales between operatingsegments are marked to market or contracted close to market price and have beeneliminated at consolidation level. Unless otherwise noted below, all suchfinancial information in the segment tables below is prepared under PRC GAAP.

30. OPERATING REVENUE AND SEGMENT REPORTING (Continued)

(Under PRC GAAP)For the tables, please visit:http://www.prnasia.com/sa/attachment/2010/05/20100504811125.pdf

31. OPERATING PROFIT

Operating profit was determined after charging (crediting) the following:

2009 2008Net gain on disposals of property, plant and equipment (32,692) (37,936)Salaries and staff welfares - Salaries and welfares 1,314,718 1,196,316 - Retirement benefits 185,731 179,148 - Staff housing benefits 151,802 174,735 - Other staff costs 169,980 228,449Auditors’ remuneration 19,811 13,180

Costs of major inventories consumed

- Fuel 27,007,813 22,700,115 - Spare parts and consumable supplies 500,029 482,638

Dividend income from available-for-sale investments

- listed (200) (50,229) - unlisted (905) (500)32. OTHER GAINS 2009 2008

Gain on disposals of available-for-sale investments (a) 30,125 893,522 Gain on disposal of an associate (b)

74,460 -

Gain on disposal of assets and liabilities held for sale

(Note 5(c)) 40,000 -Gain on disposals of subsidiaries 3,856 9,672 148,441 903,194

Notes:

(a) For the year ended 31 December 2009, the Company realised a gain on disposal of equity interest in China Continent Property & Casualty Insurance Company Ltd. for a cash consideration of Rmb86.63 million (Note 10).

For the year ended 31 December 2008, the Company realised a gain on disposal of equity interest in Daqin Railway for a cash consideration of Rmb1,389.67 million (Note 10).

(b) The Company realised a gain on disposal of a 49% equity interest in Beijing Texin Datang Heat Company Limited ("Datang Texin") to Beijing District Heating Group in March 2009 for a cash consideration of Rmb87.1 million.

33. FINANCE COSTS 2009 2008Interest expense on: Short-term bank loans 1,040,391 1,908,965 Other short-term loans 157,244 452,649 Short-term entrusted loans 2,651 - Long-term bank loans - wholly repayables within five years 1,734,212

1,820,620

- not wholly repayables within five years 2,997,829 1,916,749

Other long-term loans

- wholly repayables within five years 316,311

108,388

- not wholly repayables within five years 17,993

4,699

Long-term entrusted loan

- wholly repayable within five years 1,668

9,240 Short-term bonds 124,215 58,080 Long-term bonds 165,541 - Convertible bonds - 3,420

Interest expense on finance lease arrangements 240,162 210,396

Acquisitions of property, plant and equipment by

instalments 8,515

3,151

Discounting interest on notes receivable 35,423 46,476 6,842,155 6,542,833

Less: amount capitalised in property, plant and

equipment (2,798,839) (2,771,945) 4,043,316 3,770,888Exchange gain, net (262) (145,953)Loan commitment fees 23,865 47,735Others 43,638 22,259 4,110,557 3,694,92934. TAXATION 2009 2008

Current income tax on profit for the year 652,055 621,142 Adjustments in respect of prior years 59,809 (28,797)

Current income tax 711,864 592,345Deferred income tax (73,153) (520,534)Income tax expense 638,711 71,811

The taxation of the Company and its subsidiaries differs from the theoretical amount that would arise by the statutory income tax rate in the PRC. The reconciliation is shown as follows:

2009 2008Profit before income tax expense 3,231,027 600,204

Income tax expense calculated at the statutory

income tax rate of the Company 807,757 150,051

Income tax effects of:

Preferential income tax treatments of certain

subsidiaries (249,018) (184,106)Non-taxable income / gains (45,903) (108,434)

Expenses / Losses not deductible for income tax

purposes 22,841 10,738

Utilization of prior years’ unrecognised

deductible loss and expenses (822) (8,585)

Tax losses for which no deferred income tax asset

was recognised 118,723 240,904

Adjustments in respect of prior years and others (12,150) (28,797) Others

(2,717) 40Income tax expense 638,711 71,811The weighted average effective income tax rates for the years ended 31 December2009 and 2008 applicable to the Company and its subsidiaries were approximately19.77% and 11.96%, respectively. The increase of weighted average effectiveincome tax rate from year ended 31 December 2008 was primarily attributable tothe increase in profitability and the expiries of preferential income taxtreatments of certain subsidiaries in the current year. The analysis of deferred income tax assets and liabilities is as follows: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008

Deferred income tax assets:

- Deferred income tax assets to be

recovered after more than 12 months 546,085 561,580 34,548 25,229

- Deferred income tax assets to

be recovered within 12 months 198,029 149,516 7,008 5,582 744,114 711,096 41,556 30,811

Deferred income tax liabilities:

- Deferred income tax liabilities to be

settled after more than 12 months 275,155 353,487 - 34,413

- Deferred income tax liabilities to

be settled within 12 months 48,634 42,062 - - 323,789 395,549 - 34,413Deferred income tax assets / (liabilities), net 420,325 315,547 41,556 (3,602) The gross movement on the deferred income tax account is as follows: Company and its subsidiaries Company 2009 2008 2009 2008At 1 January 315,547 (944,658) (3,602) (971,225)

Acquisitions of subsidiaries 35,275 (204,258) - -

Tax credited to the profit or loss 73,153 520,534 45,158 19,161 Tax (charged) / credited relating

to components of other

comprehensive income (3,650) 948,346 -

948,346

Tax (charged) / credited directly to

equity - (4,417) - 116At 31 December 420,325 315,547 41,556 (3,602)

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

For the tables of the Company and its subsidiaries, please visit: http://www.prnasia.com/sa/attachment/2010/05/20100504712122.pdf

Company Fair value gain on Deferred available- housing for-sale Convertible Depreciation benefits investments bonds TotalAt 1 January 2008 35,273 1,368 948,346 851 985,838Tax credited to the profit or loss (860) (1,368) - (735) (2,963)

Tax credited relating to components

of comprehensive income - - (948,346) -

(948,346)

Tax credited directly to equity - - - (116) (116)

At 31 December 2008 34,413 - - -

34,413

Tax credited to the profit or loss(34,413) - - - (34,413)At 31 December 2009 - - - - -

Deferred income tax assets are recognised for tax losses carried-forward to theextent that the realisation of the related income tax benefits through thefuture taxable profits is probable. The Company and its subsidiaries did notrecognise deferred income tax assets in respect of certain losses that can becarried forward against future taxable income. The expiry dates of related taxlosses to be utilised are summarised as follows: Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Year of expiry2009 N/A - - -2010 - - - -2011 - - - -2012 48,548 50,027 - -2013 923,885 925,693 - -2014 888,711 N/A - - 1,861,144 975,720 - -

35. Material RELATED PARTY TRANSACTIONS AND BALANCES

Parties are considered to be related if one party has the ability, directly orindirectly, control or jointly control the other party, or exercise significantinfluence over the other party in making financial and operation decisions.Parties are also considered to be related if they are subject to commoncontrol, jointly control or significant influence. Members of key management ofthe Company are also considered as related parties.State-owned enterprises and their subsidiaries, other than entities under ChinaDatang (also a state-owned enterprise), directly or indirectly controlled bythe PRC government are also defined as related parties of the Company and itssubsidiaries in accordance with IAS 24 "Related Party Disclosures".Given that the PRC government still owns a significant portion of theproductive assets in the PRC despite the continuous reform of the governmentstructures, the majority of the business activities of the Company and itssubsidiaries are conducted with enterprises directly or indirectly owned orcontrolled by the PRC government ("other state-owned enterprises"), includingChina Datang and its subsidiaries, jointly controlled entities and associatesin the normal course of business.For the purpose of the related party balances and transactions disclosure, theCompany and its subsidiaries have established procedures to determine, to theextent possible, the identification of the ownership structure of theircustomers and suppliers as to whether they are state-owned enterprises.However, many state-owned enterprises have multi-layered corporate structuresand the ownership structures change over time as a result of transfers andprivatization programs. Nevertheless, management believes that all materialrelated party balances and transactions have been adequately disclosed.

Save as disclosed elsewhere in these financial statements, material related party transactions which were carried out in the normal course of businesses of the Company and its subsidiaries during the year and related balances as at year end were as follows:

(a) Material related party transactions with China Datang and its subsidiaries

Company and its subsidiaries 2009 2008Sales of fuel to other related parties - 106,530Sales of equipment to other related parties 37,918 199,626Provision of utility services to associates 122,115 120,043

Provision of shipping services to other related party - 11,050 Provision of coal ash disposal service from ultimate

parent company (57,890) (57,892)

Purchases of materials and equipment from other

related parties (482,686) (10,462)Purchases of fuel from, including:- Jointly controlled entities (452,216) (338,990)- Associates (40,365) (3,811)- Other related parties (46,893) - (539,474) (342,801)

Provision of technical support services from

associates (119,570) (50,240)

Provision of equipment purchase agency services from

other related parties (40,678) (10,014)

Purchases of generation quota from other related

parties (18,601) (15,580)

Provision of construction services from other related

parties - (10,490)Operating lease expenses for buildings and facilities, including:- Ultimate parent company (7,228) (7,228)- Other related parties (15,000) (15,000) (22,228) (22,228)

Provision of repairs and maintenance services from

other related parties (7,358) -

Provision of fuel management services from other

related parties (500) (4,852) Company and its subsidiaries 2009 2008Entrusted loans lent to:- Ultimate parent company 44,270 101,130- Associates 80,000 52,340Interest income on entrusted loans from:- Ultimate parent company 249 210- Associates 4,891 3,127

Interest income on deposits from an associate 14,397 23,478

Drawdown of entrusted loan from ultimate parent

company 200,000 -Drawdown of loans from an associate 21,277,950 6,942,000

Interest expense on entrusted loan from

ultimate parent company (476) -

Interest expense on loans from an associate (139,472) (140,465)

(b) Assets / Business transfers with China Datang and its subsidiaries

In addition to those business combinations and disposal disclosed in Note 5,the Company also entered into a series of assets transfer agreements and equitytransfer agreements with China Datang and its subsidiaries in November 2009,for which:-- The Company acquired two preliminary project assets of Datang Tieling Energyand Chemical Project Planning Department and Datang Fujian Power GenerationProject Planning Department and 40% equity interest in Diaobingshan PowerCompany from China Datang for a cash consideration of Rmb25 million and Rmb185million, respectively.-- The Company acquired the preliminary project assets of Hulunbei'er ProjectPlanning Department from Datang Jilin Power Generation Co., Ltd. ("Jilin PowerCompany"), a wholly-owned subsidiary of China Datang, for a cash considerationof Rmb3 million.

-- Energy and Chemical Company acquired the preliminary assets of Hulunbei'er Zhaluomude Water Conservancy and Hydropower Key Project from Jilin Power Company for a cash consideration of Rmb5 million.

-- The Company disposed its preliminary project assets of Shandong DatangDongying Power Plant Planning Department and 100% equity interest in ShandongDatang International Dongying Wind Power Generation Co., Ltd. to DatangShandong Power Generation Co., Ltd., a wholly-owned subsidiary of China Datang,for a cash consideration of Rmb343 million and Rmb104 million, respectively.(c) Material related party balances with China Datang and its subsidiaries Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Non-current assetsPrepayments for property, plant and equipment- Ultimate parent company 44,333 - - -- Other related parties 405,785 990,587 2,115 186,991

Long-term entrusted loans to

related parties- Subsidiaries - - 3,764,728 5,162,551- Associates 130,194 50,104 130,194 50,104Current assetsShort-term entrusted loansto related parties- Ultimate parent company 17,000 31,330 - -- Subsidiaries - - - 260,529

Other prepayments and other

receivables

- Ultimate parent company 242,839 - 242,839 - - Subsidiaries

- - 5,403,701 2,229,863

- Jointly controlled entities 4,073 - 4,073 - - Associates

181,335 53,794 171,400 -- Other related parties 72,221 - 56,531 -Accounts and notes receivables- Associates 35,505 148,112 - 148,112- Other related parties - 37,230 - - Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Current liabilitiesAccounts payable and accrued liabilities- Ultimate parent company (65,120) - (65,120) -- Subsidiaries - -

(74,683)(151,462)

- Jointly controlled entities (10,773) (20,377) (10,773) (20,377)- Associates (17,952) (6,929) (180) (3,182)- Other related parties (87,364) (41,835) (2,635) (2,280)Except for long-term entrusted loans and short-term entrusted loans describedabove, all the balances above were unsecured, non-interest bearing andreceivables / payables on demand. Please refer to Notes 14 and 16 for detailsof terms of unsecured long-term entrusted loans and short-term entrusted loans,respectively.(d) Financial guarantees with China Datang and its subsidiaries Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Long-term loans guaranteed by:- Ultimate parent company 1,537,316 1,631,839 - -Guarantees on short-term loans issued to:- Subsidiaries - - 2,480,036 5,894,323

- Jointly-controlled entities 175,000 200,000 175,000 200,000

Guarantees on long-term loans

issued to:- Subsidiaries - - 7,558,616

6,970,017

- Jointly-controlled entities 401,500 341,500 401,500 341,500- Associates 455,880 615,930 455,880 615,930Guarantees on finance lease

liabilities issued to subsidiaries - - 1,275,901 1,388,509

(e) Material related party transactions with other state-owned enterprises

2009 2008Sales of electricity 42,194,115 35,990,410Sales of heat 262,281 104,539

Interest expense on loans borrowed from

state-owned enterprises (6,083,967) (6,173,164)

Acquisitions of property, plant and equipment (19,145,878) (25,493,485) Purchases of fuel

(21,719,904) (22,584,637)

Purchases of spare parts and consumable supplies (248,241) (227,296) Drawdown of short-term loans from state-owned

financial institutions 26,224,489 45,085,214

Drawdown of long-term loans from state-owned

financial institutions 56,312,318 32,014,430Disposal of Datang Texin 87,197 -

(f) Material related party balances with other state-owned enterprises

Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Prepayments for property, plant and equipment 4,188,676 6,226,028 219,985 9,259Other prepayments and other receivables 3,066,574 1,859,010 1,833,321 23,182Accounts and notes receivables 5,766,591 3,966,943 1,184,183 1,257,066Bank balances 1,301,208 4,086,242 286,343 2,053,885Long-term loans (including current portion) (103,057,809)(73,355,093)(10,364,000)(13,910,000)Accounts payable and accrued liabilities (3,062,454) (1,391,578) (589,214) (157,375)Short-term loans (16,936,323)(27,048,669) (500,000)(12,802,587)

Except for bank balances and loans stated above, all the balances of assets andliabilities with other state-owned enterprises mentioned above are unsecured,non-interest bearing and receivables / repayables within one year.

Terms of bank balances, long-term loans and short-term loans are described in Notes 19, 22 and 27, respectively.

For the year ended 31 December, 2009, the annual interest rates of long-termloans and short-term loans from other state-owned enterprises are from 2.36% to 7.47% (2008: 3.60% to 7.83%) and from 2.30% to 6.72% (2008: 4.35% to 7.74%),respectively.(g) Financial guarantees with other state-owned enterprises Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008

Short-term loans guaranteed by other

state-owned enterprises 1,417,336 1,544,323 - -

Long-term loans guaranteed by other

state-owned enterprises 2,910,812 1,783,051 - -

Guarantees on long-term loans issued

to other state-owned enterprises 325,550 167,250 193,550 -

(h) Key management personnel compensation

2009 2008Basic salaries and allowances 1,888 1,218Bonus 3,303 2,434Retirement benefits 50 204Other benefits 150 849 5,391 4,705

36. EMOLUMENTS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT

(a) Details of Directors’ and Supervisors’ emoluments

The remuneration of every Director and Supervisor for the year ended 31 December 2009 is set out below:

BasicDirectors and salaries and RetirementSupervisors Fees allowances Bonus benefits Others TotalDirectors:Zhai Ruoyu - - - - - -Cao Jingshan - 171 406 5 15 597Hu Shengmu - - - - - -Fang Qinghai - - - - - -Zhou Gang - 156 335 5 15 511Liu Haixia - - - - - -Guan Tiangang - - - - - -Su Tiegang - - - - - -Ye Yonghui - - - - - -Li Gengsheng - - - - - -Xie Songlin 75 - - - - 75Yu Changchun 75 - - - - 75Liu Chaoan 75 - - - - 75Li Hengyuan 75 - - - - 75Xia Qing 75 - - - - 75Subtotal 375 327 741 10 30 1,483Supervisors:Zhang Jie - 159 335 5 15 514Fu Guoqiang - - - - - -Shi Xiaofan - 29 - - - 29Qiao Xinyi - 159 335 5 15 514Zhang Xiaoxu - - - - - -Guan Zhenquan - 133 217 5 15 370Subtotal - 480 887 15 45 1,427Total 375 807 1,628 25 75 2,910

The remuneration of every Director and Supervisor for the year ended 31 December 2008 is set out below:

BasicDirectors and salaries and RetirementSupervisors Fees allowances Bonus benefits Others TotalDirectors:Zhai Ruoyu - - - - - -Zhang Yi - 173 436 30 - 639Cao Jingshan - 113 124 18 7 262Yang Hongming - - - - - -Hu Shengmu - - - - - -Fang Qinghai - - - - - -Zhou Gang - 154 263 23 6 446Liu Haixia - - - - - -Guan Tiangang - - - - - -Su Tiegang - - - - - -Ye Yonghui - - - - - -Li Gengsheng - - - - - -Xie Songlin 75 - - - - 75Yu Changchun 75 - - - - 75Liu Chaoan 75 - - - - 75Li Hengyuan 44 - - - - 44Xia Qing 75 - - - - 75Subtotal 344 440 823 71 13 1,691Supervisors:Zhang Jie - 157 349 28 93 627Zhang Wantuo - - - - - -Fu Guoqiang - - - - - -Shi Xiaofan - 155 300 28 170 653Subtotal - 312 649 56 263 1,280Total 344 752 1,472 127 276 2,971

During the year, there was no special bonus for Directors and Supervisors (2008: nil).

During the year, no option was granted to the Directors or the Supervisors (2008: nil).

During the year, no emolument was paid to the Directors or the Supervisors (including the five highest paid individuals) as an inducement to join or upon joining the Company or as compensation for loss of office (2008: nil).

Neither Director nor Supervisor had waived or agreed to waive any emoluments during the years ended 31 December 2008 and 2009.

(b) Details of emoluments paid to the five highest paid individuals including Directors, Supervisors and senior management

The five individuals whose emoluments were the highest for the year include one(2008: one) Director and two (2008: two) Supervisors. The emoluments payable tothe remaining two (2008: two) individuals during the year are as follows: 2009 2008Basic salaries and allowances 314 312Bonus 670 698Retirement benefits 10 52Other benefits 30 221 1,024 1,283

For the years ended 31 December 2009 and 2008, the annual emoluments paid to each of the Directors, Supervisors and the two remaining highest paid individuals did not exceed HKD1,000,000.

37. EARNINGS PER SHARE

(a) Basic earnings per share

The calculation of basic earnings per share for profit attributable to the equity holders of the Company was based on profit attributable to equity holders of the Company and the weighted average amount of shares outstanding during the year. 2009 2008

Profit attributable to equity holders the Company

(Rmb’000) 1,612,317

749,354

Weighted average number of ordinary shares for

basic earnings per share (shares in thousand) 11,780,038 11,749,253

Basic earnings per share for profit attributable to

the equity holders of the Company (Rmb) 0.14

0.06

Including which:

- Basic earnings per share for continuing operations 0.1335 0.0638

- Basic earnings per share for discontinued operations 0.0034 0.0000

(b) Diluted earnings per share

The diluted earnings per share is calculated by adjusting the weighted averagenumber of ordinary shares outstanding to assume conversion of all dilutivepotential ordinary shares. There was no dilutive effect on earnings per sharesince the Company had no dilutive potential ordinary shares for the years ended31 December 2008 and 2009.38. DIVIDENDSOn 19 April 2010, the Board of Directors proposed a dividend per share ofRmb0.07 based on the total number of shares outstanding as at 19 April 2010(Note 43(b)), amounting to approximate Rmb861.703 million. This proposal issubject to the approval of the shareholders at the annual general meeting.These financial statements do not reflect this dividends payable, which will beaccounted for in shareholders' equity as an appropriation of retained earningsfor the year ending 31 December 2010.On 30 March 2009, the Board of Directors proposed a dividend per share ofRmb0.11 based on the total number of shares outstanding as at 31 December 2008,amounting to approximate Rmb1,295.804 million. Such dividends were approved atthe annual general meeting of the shareholders on 3 June 2009. As at 31December 2009, all dividends were paid.

39. NOTES TO STATEMENT OF CASH FLOWS

(a) Reconciliation of profit before income tax expense to cash generated from operations 2009 2008Profit before income tax expense 3,231,027 600,204

Adjustments for:

Depreciation of property, plant and equipment 7,506,973 6,205,584 Amortisation of land use rights 10,492 15,983 Amortisation of intangible assets 6,637 7,578 Amortisation of long-term deferred expense 2,686 528 Amortisation of deferred income (40,131) (14,923) Amortisation of deferred housing benefits 30,085 67,476 Fair value loss on an interest rate swap - 8,551 Net gain on disposals of property, plant and equipment (32,692) (37,936) Interest income (33,124) (83,467) Interest expense 4,075,396 3,794,406 Exchange gain, net (262) (145,953) Dividend income (1,105) (50,729) Interest income from entrusted loans lent to related parties (5,140) (3,337) Shares of post-tax losses of jointly controlled entities 52,685 57,278 Shares of post-tax profits of associates (462,112) (427,796) Gain on disposals of available-for-sale investments (30,125) (893,522) Gain on disposal of assets and liabilities held for sale (40,000) - Gain on disposal of an associate (74,460) - Gain on disposals of subsidiaries (3,856) (9,672)

Operating profit before working capital changes 14,192,974 9,090,253

Decrease / (Increase) in current assets:

Inventories 336,446 (1,138,686) Prepayments and other receivables (711,620) (840,466) Accounts and notes receivable (2,225,882) 1,376,728

Increase / (Decrease) in current liabilities:

Accounts payable and accrued liabilities 1,258,678 (144,858)

Taxes payable (8,783) (463,363)Cash generated from operations 12,841,813 7,879,608

(b) Material non-cash transaction

For the year ended 31 December 2009, there was a material non-cash transaction,which the Company used property, plant and equipment, construction payables andothers amounting to Rmb1,850.935 million and Rmb384.905 million, respectively,in acquiring an associate. Subsequently, this associate recorded a payable ofRmb104.400 million, representing the excess investment to be refunded.

There was no material non-cash transaction for the year ended 31 December 2008.

(c) Undrawn borrowing facilities

The undrawn borrowing facilities of the Company and its subsidiaries available as at year end were as follows:

Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008

Expiring within one year 8,166,063 12,323,000 6,000,000 12,323,000 Expiring beyond one year 160,837,364 25,839,767 159,726,354 25,839,767

169,003,427 38,162,767 165,726,354 38,162,76740. COMMITMENTS(a) Capital commitments Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Authorised and contracted for equity investments 2,283,200 1,618,830 2,030,100 1,568,830

acquisitions of property, plant

and equipment 14,042,926 24,715,091 2,017,488

6,336,010

acquisitions of intangible

assets 4,294,792 4,294,792 - - 20,620,918 30,628,713 4,047,588 7,904,840

Authorised but not contracted for

acquisitions of property, plant and

equipment 34,679,804 16,142,760 - 111,424 55,300,722 46,771,473 4,047,588 8,016,264A substantial portion of the capital commitment above is in relation to a coalmining project for which the Company and its subsidiaries have not yet obtainedthe relevant mining license. Should the mining license not be able to obtain atthe end of the exploration work, there will be no such capital commitment.

(b) Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases in relation to buildings were as follows:

Company and its subsidiaries Company 31 December 31 December 2009 2008 2009 2008Within one year 20,578 13,966 13,763 9,711Between two and five years 68,427 40,816 46,378 38,844Over five years 46,813 29,132 19,422 29,133 135,818 83,914 79,563 77,688

41. FINANCIAL GUARANTEES

Company and its 31 December 31 December 2009 2008 2009 2008

Financial guarantees granted to

-subsidiaries - - 11,314,553

14,252,849

-a jointly controlled entity 576,500 541,500 576,500 541,500 -associates 455,880 615,930 455,880 615,930 -other investees 132,000 167,250 - - -others 193,550 - 193,550 - 1,357,930 1,324,680 12,540,483 15,410,279

Based on historical experience, no claims have been made against the Company and its subsidiaries since the dates of granting the financial guarantees described above.

42. ADDITIONAL FINANCIAL INFORMATION

As at 31 December 2009, net current liabilities and total assets less current liabilities of the Company and its subsidiaries amounted to approximately Rmb24,714 million (2008: Rmb38,188 million) and Rmb142,830 million (2008: Rmb104,997 million), respectively.

As at 31 December 2009, net current assets and total assets less current liabilities of the Company amounted to approximately Rmb6,516 million (2008: net current liabilities of Rmb14,022 million) and Rmb42,855 million (2008: Rmb39,582 million), respectively.

43. EVENTS AFTER REPORTING PERIOD

(a) Pursuant to the agreements entered into between the Company and originalshareholders of Yuneng Group in May 2009 and January 2010, the Company acquired100% equity interest in Yuneng Group. Related consideration of this acquisitionamounted to Rmb1.345 billion. This acquisition became effective in January 2010after meeting all the conditions of this acquisition, including payments ofconsideration and effective transfer of controlling equity.Given the complex structures of Yuneng Group and its subsidiaries, as at thedate of this report, management is in the process of reviewing financialinformation of this acquired group and performing assessments of purchase priceallocation of identifiable assets and liabilities acquired as at effectiveacquisition date, no additional disclosures required under IFRS 3 are made.(b) Pursuant to Zheng Jian Faxing Zi [2009] No. 1492 document, "Approval ofnon-public share issuance of Datang International Power Generation Co., Ltd."issued by China Securities Regulatory Commission (the "CSRC") on 29 December2009, the CSRC granted approval to the Company in non-publicly issuing ordinaryshares to particular domestic investors not exceeding 700 million ordinaryshares. For the period after 31 December 2009 and up to the date of thisreport, the Company has issued 530 million ordinary shares to particulardomestic investors at Rmb6.23 per share totalling Rmb3,301.90 million. Netproceeds raised amounted to Rmb3,248.25 million after deducting relatedunderwriting fees, share registration expenses and other transaction costs

ofRmb53.65 million.Supplemental InformationFor the year ended 31 December 2009(All amounts expressed in thousands of Rmb unless otherwise stated)

Net assets and net profit reconciliations between IFRS and PRC GAAP

The consolidated financial statements which are prepared by the Company and itssubsidiaries in conformity with IFRS, differ in certain respects from PRC GAAP.Major differences between IFRS and PRC GAAP, which affect the net assets andnet profit of the Company and its subsidiaries, are summarised as follows:

Net assets 31 December 2009 2008 (Restated) (Note (i))Net assets under IFRS 32,847,995 30,905,973

Impact of PRC GAAP adjustments:

Difference in the commencement of

depreciation of property, plant and equipment (a) 106,466 106,466

Difference in accounting treatment on monetary

housing benefits (b) (163,384)

(193,468)

Difference in accounting treatment on mining funds (d) (83,291) (52,268)

Applicable deferred income tax impact of

the GAAP differences above (e) 9,158

1,349Net assets under PRC GAAP 32,716,944 30,768,052 Net profit 2009 2008 (Restated) (Note (i))Profit under IFRS 2,592,316 528,393

Impact of PRC GAAP adjustments:

Difference in accounting treatment on monetary

housing benefits (b) -

37,346

Difference in the recognition policy on housing

benefits to the employees (c) 30,084

30,130

Difference in accounting treatment on mining funds (d) (163,109) (180,671)

Others -

(1,722)

Applicable deferred income tax impact of the

GAAP differences above (e) 7,809 18,109Net profit under PRC GAAP 2,467,100 431,585Note:(i) As a result of common control business combinations in 2009, net assetsand profit under both IFRS and PRC GAAP above have been restated using mergeraccounting method for all periods presented herein.

(a) Difference in the commencement of depreciation of property, plant and equipment

This represents the depreciation difference arose from the different timing of the start of depreciation charge in previous years.

(b) Difference in accounting treatment on monetary housing benefits

Under IFRS, the monetary housing benefits provided to employees who started work before 31 December 1998 are recorded as deferred assets and amortised on a straight-line basis over the estimated service lives of relevant employees.

Under PRC GAAP, these benefits were directly deducted from the retained earnings and statutory public welfare fund after approval by the general meeting of the Company and its subsidiaries.

(c) Difference in the recognition policy on housing benefits to the employees

The Company and its subsidiaries provided housing to its employees at apreferential price. The difference between the selling price and the cost ofhousing is considered to be a housing benefit during the related periods and isborne by the Company and its subsidiaries.For PRC statutory reporting purposes, in accordance with the relevantregulations issued by the MOF of the PRC, the total housing benefits providedby the Company and its subsidiaries before 6 September 2000 should be directlydeducted from the statutory public welfare fund and those provided after 6September 2000 are charged to non-operating expenses as incurred. Under IFRS,the housing benefits provided by the Company and its subsidiaries arerecognised on a straight-line basis over the estimated remaining averageservice lives of the employees.

(d) Difference in accounting treatment on mining funds

Under PRC GAAP, accrual of future development and work safety expenses areincluded in respective product cost or current period profit or loss andrecorded in a specific reserve accordingly. When such future development andwork safety expenses are applied and related to revenue expenditures, specificreserve is directly offset when expenses incurred. When capital expendituresare incurred, they are included in construction-in-progress and transferred tofixed assets when the related assets reach the expected use condition. They arethen offset against specific reserve based on the amount included in fixedassets while corresponding amount is recognised in accumulated depreciation.Such fixed assets are not depreciated in subsequent periods.Under IFRS, coal mining companies are required to set aside an amount to a fundfor future development and work safety through transferring from retainedearnings to restricted reserve. When qualifying revenue expenditures areincurred, such expenses are recorded in the profit or loss as incurred. Whencapital expenditures are incurred, an amount is transferred to property, plantand equipment and is depreciated in accordance with the depreciation policy ofthe Company. Internal equity items transfers take place based on the actualapplication amount of future development and work safety expenses whereasrestricted reserve is offset against retained earnings to the extent of zero.

(e) Applicable deferred income tax impact on the GAAP differences above

This represents the deferred income tax effect on the GAAP differences above where applicable.

Corporate InformationRegistered Name of the CompanyDatang International Power Generation Company Limited (in Chinese)English Name of the CompanyDatang International Power Generation Company LimitedOffice Address of the CompanyNo. 9 Guangningbo StreetXicheng DistrictBeijingPeople’s Republic of ChinaPrincipal Place of Business in Hong KongStephen Mok & Co in association with Eversheds21/F Gloucester Tower15 Queen’s Road CentralHong KongLegal RepresentativeZhai RuoyuAuthorised RepresentativesCao JingshanZhou GangSecretary to the BoardZhou GangPrincipal BankersIn the PRC:Industrial and Commercial Bank ofChina, Xuanwu BranchNo. 3 Nanbinhe RoadXuanwu DistrictBeijingPeople’s Republic of ChinaOutside the PRC:Bank of China, Hong Kong BranchOne Garden RoadCentralHong KongDomestic AuditorsPricewaterhouseCoopers Zhong Tian CPAsLimited Company11/F, PricewaterhouseCoopers Center2 Corporate Avenue,202 Hu Bin Road,Luwan District,Shanghai, The People’s Republic of ChinaInternational AuditorsPricewaterhouseCoopersCertified Public Accountants22nd Floor, Prince’s BuildingCentralHong KongLegal Advisorsas to PRC law:Beijing Hylands Law Firm5A1 Hanwei PlazaNo. 7 Guanghua RoadChaoyang DistrictBeijingPeople’s Republic of Chinaas to Hong Kong law:Stephen Mok & Co in association with Eversheds21/F, Gloucester Tower15 Queen’s Road CentralHong KongListing InformationH SharesThe Stock Exchange of Hong Kong LimitedCode: 0991A SharesShanghai Stock ExchangeCode: 601991H SharesThe London Stock Exchange LimitedCode: DATShare Register and Transfer OfficeComputershare Hong Kong Investor Services Limited17/F, Hopewell Center183 Queen’s Road EastWanchaiHong KongInformation of the CompanyAvailable at:The secretary office of the BoardDatang International Power GenerationCompany LimitedNo. 9 Guangningbo StreetXicheng DistrictBeijingPeople’s Republic of ChinaandRikes Hill & Knowlton LimitedRoom 1312, Wing On Centre111 Connaught Road CentralHong KongGlossary of Terms

The following terms have the following meaning in this annual report, unless otherwise required by the context.

"North China The power transmission network covering Beijing, Power" Tianjin, Hebei Province, Shanxi Province and Inner Mongolia Autonomous Region "Installed The highest level of electrical output which a powercapacity" plant is designed to be able to maintain continuously without causing damage to the plant

"Gross generation" For a specified period, the total amount of

electrical power produced by a power plant in that period including electrical power consumed in the operation of the power plant "Total on-grid The amount of power transmitted to a power network generation" from a power plant as measured by the grid meter "Equivalent For a specified period and a given power plant, the availability ratio (usually expressed as a percentage) of the factor" number of available hours in that period (reduced, in the case of hours in which the attainable generating capacity of such plant is less than the installed capacity, by the proportion of installed capacity not so attainable) to the total number of hours in that period "Utilisation For a specified period, the number of hours it wouldhours" take for a power plant operating at installed capacity to generate the amount of electricity actually produced in that period "MW" 1,000,000 watts (equivalent to 1,000 kW) "kWh" A unit of power generation equivalent to the output generated by 1,000 watts of power in one hour "MWh" A unit of power generation equivalent to the output generated by 1,000,000 watts of power in one hour

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