6-K 1 form6-k.htm 6-K WITH THREE ANNOUNCEMENTS

FORM 6-K


SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934


 For the month of March 2017

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F     X   Form 40-F _____

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. )
Yes ____No   X          

(If "Yes" is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-__________. )
N/A

Huaneng Power International, Inc.
Huaneng Building,
6 Fuxingmennei Street,
Xicheng District,
Beijing, 100031 PRC




This Form 6-K consists of:

1.          An announcement regarding 2016 annual results of Huaneng Power International, Inc. (the Registrant”);
2.          An announcement regarding resolutions  passed at the twenty fourth meeting of the eighth session of the board of directors; and
3.          An announcement regarding proposed re-election and appointment of directors and supervisors;

Each made by the Registrant on March 22, 2017.
 

Announcement 1
 
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Stock Code: 902)

ANNOUNCEMENT OF ANNUAL RESULTS FOR 2016

Power generation by domestic power plants:
 
313.690 billion kWh
     
Consolidated operating revenue:
 
RMB113.814 billion
     
Net profit attributable to equity holders of the Company:
 
RMB8.520 billion
     
Earnings per share:
 
RMB0.56
     
Proposed dividend:
 
RMB0.29 per ordinary share (inclusive of tax)

SUMMARY OF OPERATING RESULTS

The Board of Directors (the “Board”) of Huaneng Power International, Inc. (the “Company” or “Huaneng International”) hereby announces the audited operating results of the Company and its subsidiaries for the year ended 31 December 2016.
1

For the twelve months ended 31 December 2016, the Company realized operating revenue of RMB113.814 billion, representing a decrease of 11.71% compared to the same period last year, and net profit attributable to equity holders of the Company amounted to RMB8.520 billion, representing a decrease of 37.59% as compared with the same period last year. Earnings per share amounted to RMB0.56. The Board is satisfied with the Company’s results last year.

The Board of the Company proposed to declare a cash dividend of RMB0.29 (inclusive of tax) for each ordinary share of the Company held by shareholders.

Details of the operating results are set out in the financial information.

BUSINESS REVIEW OF YEAR 2016

In 2016, the Company actively responded to the new changes of power system reform and the significant rise of coal price, and took proactive initiatives to progress the relevant work, so as to maintain overall stable operation in clean and safe production and strict cost control, thereby achieving a better annual operating objective. Meanwhile, the Company continued to fulfill the duties of providing sufficient, reliable and green power to the society.

1.
Operating Results

For the twelve months ended 31 December 2016, the Company realized operating revenue of RMB113.814 billion, representing a decrease of 11.71% compared to the same period last year. Net profit attributable to equity holders of the Company amounted to RMB8.520 billion, representing a decrease of 37.59% as compared with the same period last year. Earnings per share amounted to RMB0.56.

As at 31 December 2016, net assets per share attributable to the equity holders of the Company amounted to RMB5.66, representing an increase of 2.21% as compared with the year end of last year.

The Audit Committee of the Company convened a meeting on 20 March 2017 and reviewed the 2016 annual results of the Company.
2

2.
Power Generation

Total power generated by the Company’s domestic operating power plants for the year of 2016 on consolidated basis amounted to 313.69 billion kWh, representing a year-on-year decrease of 2.13%. The electricity sold amounted to 295.80 billion kWh, representing a year-on-year decrease of 2.05%. The annual average utilization hours of the Company’s domestic power plants reached 3,921 hours. The utilization hours of coal-fired power generating unit was 4,107 hours. In most of the areas where the Company’s coal-fired power plants are located, the utilization hours of the Company was in a leading position within those areas.

3.
Cost Control

Throughout 2016, the Company procured coal in an aggregate of 132 million tons. By continuously reinforcing cooperation with major coal mines, innovating cooperation mode and procurement strategy, optimizing regional supply structure, accurately judging coal market trends, targeting high-quality low-cost imported coal resources in advanced basis, and reducing the unit procurement price of standard coal, the Company controlled the fuel procurement costs in a better way, while the coal price rose significantly in the second half of the year. The unit fuel cost of our domestic power plants throughout the year occurred for sales of power was RMB170.62/MWh, representing a year-on-year decrease of 1.76%.
3

4.
Energy Saving and Environmental Protection

The Company has always placed energy saving and environmental protection as its utmost priority. In 2016, the Company continued to lead its peers in terms of production safety, technical, economic and energy consumption indicators. The average equivalent availability ratio of coal-fired units of the Company’s domestic power plants was 95.05% and its weighted average house consumption rate was 4.57%. The average yearly coal consumption rate of the Company’s coal-fired units for the power generated was 290.34 grams/kWh, which was 0.62 grams/kWh lower than that of the same period last year. The Company’s average coal consumption rate for power sold was 307.69 grams/kWh, representing a decrease of 0.87 grams/kWh from that of the same period last year.

Under the policy of green development and with the targets of “nil pollution to environment” and maintaining “leading position in various indicators”, the Company has been vigorously promoting business upgrade and reform to emphasize energy conservation and emission reduction. It continues to reinforce maintenance and operation of environment protection equipment, and continues to optimize its systems for the sake of long term development. Its core technology in relating to flue gas synergic management won the first prize in sector of power technology of China in 2016, and has been successfully applied in a number of our environment enhancement and new related projects. Also, the Company will continue to implement the requirements on ultra-low emissions and new energy consumption standards on coal-fired generating plants and improve the performance of the Company in energy conservation and environmental protection, realizing clean and green development.
4

5.
Capital Operation

In 2016, the Company signed agreement to acquire interests in four companies from parent company for the consideration of approximately RMB15.114 billion, so that it expanded the asset scale, operational scale and territory scope of the Company. Upon completion of the transaction on 1 January 2017, the Company increased its controlled generating capacity in operation by 15,607 MW, and capacity under construction by 3,666 MW.

Besides, the Company completed the acquisition of 100% equity interest in Luoyang Yangguang Cogeneration (with an installed capacity of 270 MW) in the third quarter of 2016.

6.
Project Development

The Company progressed smoothly in construction of power supply projects. During the year, the controlled generation capacity of the newly commissioned coal-fired generating units, wind power generating units and photovoltaic units of the Company was 850 MW, 328 MW and 99 MW, respectively. As of 31 December 2016, the Company’s controlled and equity-based generation capacity was 83,878 MW and 76,618 MW, respectively.

Besides, the Company has commenced operation of certain photovoltaic units and coal-fired generating units recently. As of 21 March 2017, the Company’s controlled and equity-based generation capacity was 101,116 MW and 89,545 MW, respectively.
5

7.
Overseas Business
 
In 2016, Tuas Power Ltd. (“Tuas Power”), a wholly-owned subsidiary of the Company in Singapore, maintained safe and stable operation of the generation units throughout the year. The total market share of Tuas Power in the power generation market for the whole year was 21.5%, representing a year-on-year decrease of 0.2 percentage point, mainly attributable to the ongoing oversupply in the power market in Singapore as a result of the fact that large number of generating units were put into operation in recent years.
 
The Company continues to deliver promising performance in the capital markets. It was awarded “Golden Governance 2016 Listed Company – Outstanding Board Secretaries” by the Shanghai Securities News (investor relations), and “the Most Investment Value of Listed Company” and “the Best Board Secretary” of the China Securities Golden Bauhinia Awards. The Company’s annual report of H Shares in 2015 won Gold Award in the 30th International ARC Awards Competition. Besides, the Company was on the list of “Platts Top 250 Global Energy Listed Company Ranking” for eight consecutive years and ranked 27th in 2016 with its ranking moving higher continuously.

PROSPECTS FOR 2017

In 2017, the Company will further firmly establish a sense of leadership, competitive awareness, market awareness and risk awareness. The Company will adhere to an issue-oriented approach, strengthen innovation drive, undertake responsibility and missions, enhance corporate vitality, and place more emphases on quality and efficiency, transformation and upgrading, standardizing management and risk prevention work, constantly improve the profitability, competitive strength and sustainable development capability of the Company.
6

In respect of the power market, the Company will continue to deeply research market supply and demand situation, and take active part in market competition. We will ensure market share is higher than capacity share, and strive for a leading position in the region in terms of utilization hour benchmark in an effort to achieve a power generation of 392.0 billion kWh and 3,800 utilization hours for the year.

Regarding the fuel market, the Company will adhere to the market-oriented development, and reinforce the benchmark system construction, deepen the refined management and thus creating a cost advantage. We will continue to optimize fuel procurement chain and production and operation chain.

In respect of the capital market, the Company will make active response to changes in the financial market, expand financing channels, strengthen internal control over capital and improve capital usage efficiency, continuing to maintain the Company’s leading position in the industry in terms of financing cost.

In respect of innovative development, the Company will further perform innovation-driven development strategy, strengthen production management innovation and improve intelligent production, enhance management efficiency and effectiveness. Innovation will become the Company’s primary driver for establishing its new competitive advantages and for steering the Company’s future development.
7

OPERATING AND FINANCIAL REVIEWS AND PROSPECTS
MANAGEMENT’S DISCUSSION AND ANALYSIS

(Prepared under International Financial Reporting Standards (“IFRS”))

General

The principal activities of the Company are investment in and construction, operation and management of power plants. The Company provides consistent and reliable electricity to customers through grid operators where its operating plants are located. The Company is committed to scientific development through increasing economic efficiency, enhancing returns for shareholders, conserving resources and protecting the environment. The Company also attaches importance to social responsibilities and makes active contribution to the building of a harmonious society.

Since its incorporation, the Company has continued to expand its operational scale and has been the leader in its industry in competitiveness, resource utilization efficiency and environmental protection. The Company is Asia’s largest listed power producer and China’s most dynamic power generator. Its power generation operations are widely located in China with coverage in Northeastern China Grid, Northern China Grid, Northwestern China Grid, Eastern China Grid, Central China Grid and Southern China Grid, as well as overseas market in Singapore.
8

Looking back in 2016, with strong support of its shareholders, the employees of the Company made active and concerted efforts to respond to the changes in power, coal and capital markets by expanding overseas market, improving marketing analysis and enhancing internal management with focus on key operations, as well as thorough planning and sound internal control. These efforts have contributed to growth of the Company in various aspects. During 2016, the Company maintained its leading position in major technological and economic indices and utilization hours through safe production and active marketing activities. Fuel management was enhanced and financial costs were effectively controlled. The Company achieved a remarkable improvement in its growth quality as a result of active power generation restructuring efforts. The Company has also made new developments in energy saving, ultra-low emission and technological renovation, diligently fulfilling its social responsibilities as a reliable provider of sufficient, stable and environment-friendly power to the society.
9

A.
OPERATING RESULTS

1.
2016 operating results

The power generation of the Company’s domestic power plants for the year ended 31 December 2016 are as listed below (in 100 million kWh):

Domestic Power Plant
 
Power Generation
 
Electricity sold
2016
 
Change
 
2016
 
Change
                 
Liaoning Province
 
198.24
 
-2.21%
 
186.28
 
-2.11%
Coal-fired
 
194.76
 
-2.28%
 
182.84
 
-2.18%
Wind power
 
2.97
 
2.75%
 
2.95
 
2.60%
Hydropower
 
0.34
 
-32.36%
 
0.34
 
-32.41%
PV
 
0.160
 
 
0.157
 
Inner Mongolia
 
2.18
 
12.82%
 
2.16
 
12.84%
Wind power
 
2.18
 
12.82%
 
2.16
 
12.84%
Heibei Province
 
130.63
 
3.54%
 
122.90
 
3.88%
Coal-fired
 
129.31
 
3.29%
 
121.69
 
3.65%
Wind power
 
1.16
 
19.68%
 
1.09
 
19.75%
PV
 
0.16
 
 
0.121
 
Gansu Province
 
97.16
 
37.76%
 
94.06
 
39.96%
Coal-fired
 
84.43
 
40.24%
 
81.85
 
42.72%
Wind power
 
12.73
 
23.15%
 
12.21
 
23.91%
Beijing
 
75.43
 
-6.67%
 
70.06
 
-6.49%
Coal-fired
 
34.06
 
-13.19%
 
29.65
 
-13.47%
Combined Cycle
 
41.36
 
-0.54%
 
40.41
 
-0.61%
Tianjin
 
72.53
 
-1.88%
 
68.43
 
-1.91%
Coal-fired
 
52.80
 
-2.71%
 
49.18
 
-2.74%
Combined Cycle
 
19.73
 
0.35%
 
19.24
 
0.28%
Shanxi Province
 
107.07
 
12.53%
 
100.67
 
17.09%
Coal-fired
 
81.61
 
-2.55%
 
75.94
 
-2.85%
Combined Cycle
 
25.46
 
123.53%
 
24.73
 
216.65%
Shandong Province
 
413.54
 
-2.31%
 
389.28
 
-2.34%
Coal-fired
 
413.54
 
-2.31%
 
389.28
 
-2.34%
 
10

Domestic Power Plant
 
Power Generation
 
Electricity sold
2016
 
Change
 
2016
 
Change
                 
Henan Province
 
214.52
 
6.23%
 
194.53
 
2.86%
Coal-fired
 
214.34
 
6.14%
 
194.41
 
2.80%
Wind power
 
0.19
 
 
0.12
 
Jiangsu Province
 
430.21
 
2.33%
 
408.8
 
2.08%
Coal-fired
 
389.25
 
4.31%
 
368.66
 
4.11%
Combined Cycle
 
35.17
 
-18.05%
 
34.54
 
-17.89%
Wind power
 
5.79
 
32.99%
 
5.59
 
31.00%
Shanghai
 
181.38
 
0.06%
 
171.81
 
0.01%
Coal-fired
 
164.89
 
0.84%
 
155.72
 
0.82%
Combined Cycle
 
16.49
 
-7.11%
 
16.09
 
-7.17%
Chongqing
 
100.16
 
-6.43%
 
93.14
 
-6.04%
Coal-fired
 
81.54
 
-16.51%
 
75.01
 
-16.68%
Combined Cycle
 
18.62
 
98.50%
 
18.13
 
99.02%
Zhejiang Province
 
247.11
 
0.15%
 
237.05
 
0.50%
Coal-fired
 
241.71
 
-0.92%
 
231.77
 
-0.58%
Combined Cycle
 
5.18
 
91.87%
 
5.06
 
90.83%
PV
 
0.215
 
169.30%
 
0.215
 
158.25%
Hubei Province
 
140.85
 
6.52%
 
132.07
 
7.02%
Coal-fired
 
136.02
 
4.48%
 
127.51
 
4.90%
Wind power
 
1.88
 
248.65%
 
1.74
 
289.00%
Hydropower
 
2.94
 
97.31%
 
2.83
 
100.71%
Hunan Province
 
83.16
 
-3.41%
 
78.27
 
-3.21%
Coal-fired
 
74.44
 
-5.28%
 
69.67
 
-5.36%
Wind power
 
5.37
 
38.78%
 
5.32
 
44.13%
Hydropower
 
3.34
 
-7.94%
 
3.28
 
-7.88%
Jiangxi Province
 
174.42
 
13.35%
 
166.41
 
15.50%
Coal-fired
 
173.35
 
13.33%
 
165.40
 
15.51%
Wind power
 
1.07
 
19.14%
 
1.01
 
13.65%
Anhui Province
 
58.46
 
-2.17%
 
55.76
 
-1.98%
Coal-fired
 
56.17
 
-3.94%
 
53.54
 
-3.70%
Wind power
 
0.89
 
 
0.82
 
Hydropower
 
1.40
 
8.66%
 
1.40
 
8.87%
 
11

Domestic Power Plant
 
Power Generation
 
Electricity sold
2016
 
Change
 
2016
 
Change
                 
Fujian Province
 
76.77
 
-29.52%
 
72.29
 
-30.00%
Coal-fired
 
76.77
 
-29.52%
 
72.29
 
-30.00%
Guangdong Province
 
174.53
 
-16.70%
 
166.94
 
-16.82%
Coal-fired
 
174.45
 
-16.74%
 
166.87
 
-16.85%
PV
 
0.07
 
 
0.064
 
Yunnan Province
 
38.83
 
-32.19%
 
35.73
 
-32.41%
Coal-fired
 
35.84
 
-35.76%
 
32.96
 
-36.02%
Wind power
 
2.99
 
103.21%
 
2.78
 
103.98%
Guizhou Province
 
0.45
 
16515.56%
 
0.38
 
Wind power
 
0.45
 
16515.56%
 
0.38
 
Hainan Province
 
119.28
 
-28.00%
 
111.00
 
-28.10%
Coal-fired
 
115.28
 
-28.52%
 
107.11
 
-28.65%
Combined Cycle
 
1.27
 
-48.64%
 
1.21
 
-49.29%
Wind power
 
1.01
 
1.93%
 
0.99
 
1.86%
Hydropower
 
1.64
 
75.99%
 
1.61
 
77.21%
PV
 
0.083
 
 
0.082
 
Total
 
3,136.90
 
-2.13%
 
2,958.00
 
-2.05%


The decrease in the Company’s power generation for the year was mainly attributable to the following reasons: (1) the installed capacity growth outpaced the growth of the nationwide power consumption while the utilization hours of coal-fired power generation units saw a year-on-year fall; (2) the growth of the Company’s installed capacity was below the regional average; and (3) the launch of new nuclear power generators in areas including Liaoning, Guangdong, Fujian and Hainan provinces had a relatively great impact on the output of the coal-fired power generation units in these regions.

12

For the year ended 31 December 2016, the accumulated power generation of Tuas Power Ltd., the Company’s wholly owned subsidiary in Singapore, accounted for a market share of 21.5%, representing a decrease of 0.2% compared to the same period last year.

In respect of the tariff, the Company’s domestic average tariff for the year ended 31 December 2016 was RMB396.60 per MWh, decreased by RMB46.66 per MWh from the year ended 31 December 2015. SinoSing Power’s average tariff for 2016 was RMB514.00 per MWh, representing a decrease of 17.88% from last year.

In respect of fuel costs, the effective cost controls of the Company contributed to reduced fuel costs of the Company. Compared with 2015, the Company’s fuel cost per unit of power sold of domestic power plant decreased by 1.76% to RMB170.62 per MWh.

Combining the forgoing factors, for the year ended 31 December 2016, the Company recorded an operating revenue of RMB113.814 billion, representing a decrease of 11.71% from RMB128.905 billion of last year, and the net profit attributable to equity holders of the Company of RMB8.520 billion, representing a decrease of 37.59% from RMB13.652 billion of last year.

For the year ended 31 December 2016, the net profit attributable to equity holders of the Company from domestic operations was RMB8.760 billion, representing a decrease of RMB4.951 billion from RMB13.711 billion for the same period last year. The decrease was primarily attributable to lowered on-grid tariff for coal-fired power generator administered by the National Development and Reform Commission (“NDRC”), reduced domestic power generation of the Company and increased volume of market power transactions. The net loss attributable to equity holders of the Company from its operations in Singapore was RMB240 million, representing an increase of RMB181 million compared to the same period last year.

13

2.
Comparative Analysis of Operating results

2.1
Operating revenue and tax and levies on operations

Operating revenue mainly consists of revenue from electricity sold. For the year ended 31 December 2016, the consolidated operating revenue of the Company and its subsidiaries amounted to RMB113.814 billion, representing a decrease of 11.71% from RMB128.905 billion for the year ended 31 December 2015. The operating revenue from domestic operations of the Company decreased by RMB13.706 billion over the same period of last year, while the operating revenue generated from newly acquired entities and newly operated generating units was RMB3.525 billion.

The operating revenue from the operations of the Company in Singapore decreased by RMB1.385 billion over the same period of last year, which was mainly attributed to the continued oversupply in the Singapore power and natural gas market, causing continued decline of electricity tariff and a drop of the operating revenue.

Region/type of
power generation
 
Average tariff rate (VAT inclusive)
(RMB/MWh)
2016
 
2015
 
Change
             
Liaoning Province
           
Coal-fired
 
344.42
 
374.38
 
-8.00%
Wind power
 
618.74
 
593.25
 
4.30%
Hydropower
 
332.67
 
329.96
 
0.82%
PV
 
950.00
 
 
Not applicable
Inner Mongolia
           
Wind power
 
471.22
 
520.00
 
-9.38%
Hebei Province
           
Coal-fired
 
358.48
 
401.79
 
-10.78%
Wind power
 
554.60
 
538.14
 
3.06%
PV
 
784.95
 
 
Not applicable
 
14

 
Region/type of
power generation
 
Average tariff rate (VAT inclusive)
(RMB/MWh)
2016
 
2015
 
Change
             
Gansu Province
           
Coal-fired
 
207.63
 
259.51
 
-19.99%
Wind power
 
398.34
 
483.75
 
-17.66%
Beijing
           
Coal-fired
 
454.99
 
480.70
 
-5.35%
Combined Cycle
 
687.33
 
959.91
 
-28.40%
Tianjin
           
Coal-fired
 
370.82
 
416.54
 
-10.98%
Combined Cycle
 
726.44
 
817.57
 
-11.15%
Shanxi Province
           
Coal-fired
 
252.98
 
333.78
 
-24.21%
Combined Cycle
 
682.40
 
703.80
 
-3.04%
Shandong Province
           
Coal-fired
 
381.99
 
436.47
 
-12.48%
Henan Province
           
Coal-fired
 
355.46
 
400.54
 
-11.25%
Wind power
 
610.00
 
 
Not applicable
Jiangsu Province
           
Coal-fired
 
378.06
 
410.86
 
-7.94%
Combined Cycle
 
661.52
 
731.69
 
-9.59%
Wind power
 
570.50
 
568.33
 
0.38%
Shanghai
           
Coal-fired
 
385.59
 
424.38
 
-9.14%
Combined Cycle
 
899.62
 
937.13
 
-4.00%
Chongqing
           
Coal-fired
 
376.92
 
427.84
 
-11.90%
Combined Cycle
 
649.74
 
872.20
 
-25.51%
Zhejiang Province
           
Coal-fired
 
407.76
 
460.76
 
-11.50%
Combined Cycle
 
887.70
 
1,278.17
 
-30.55%
PV