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.

                DATANG INTERNATIONAL POWER GENERATION CO., LTD.

(a sino-foreign joint stock limited company incorporated in the People's
                               Republic of China)
                              (Stock Code: 00991)

                    ANNOUNCEMENT OF 2014 INTERIM RESULTS

OPERATING AND FINANCIAL HIGHLIGHTS:

  * Operating revenue amounted to approximately RMB34,843 million, representing
    a decrease of approximately 5.86% over the first half of 2013.

  * Total profit before tax amounted to approximately RMB4,136 million,
    representing an increase of approximately 3.05% over the first half of
    2013.

  * Net profit attributable to equity holders of the Company amounted to
    approximately RMB2,029 million, representing an increase of approximately
    0.47% over the first half of 2013.

  * Basic earnings per share attributable to equity holders of the Company
    amounted to approximately RMB0.1524, representing an increase of RMB0.0007
    per share over the first half of 2013.

I. COMPANY RESULTS

   The board of directors (the "Board") of Datang International Power Generation
   Co., Ltd. (the "Company") hereby announces the unaudited consolidated operating
   results of the Company and its subsidiaries (the "Group") prepared in
   conformity with International Financial Reporting Standards ("IFRS") for the
   six months ended 30 June 2014 (the "Period"), together with the unaudited
   consolidated operating results of the first half of 2013 (the "Corresponding
   Period Last Year") for comparison. Such operating results have been reviewed
   and confirmed by the Company's audit committee (the "Audit Committee").

   Operating revenue of the Group for the Period was approximately RMB34,843
   million, representing a decrease of approximately 5.86% as compared to the
   Corresponding Period Last Year. Total profit before tax amounted to
   approximately RMB4,136 million, representing an increase of approximately 3.05%
   over the Corresponding Period Last Year. Net profit attributable to equity
   holders of the Company was approximately RMB2,029 million, representing an
   increase of approximately 0.47% as compared to the Corresponding Period Last
   Year. Basic earnings per share attributable to equity holders of the Company
   amounted to approximately RMB0.1524, representing an increase of RMB0.0007 per
   share as compared to the Corresponding Period Last Year.

II. MANAGEMENT DISCUSSION AND ANALYSIS

   The Company is one of the largest independent power generation companies in the
   People's Republic of China (the "PRC") and primarily engages in power
   generation businesses with its main focus on coal-fired power generation. In
   the first half of 2014, the Company firmly adhered to the value-focused and
   results-oriented principles. With safety and stability as basis and economic
   effectiveness as core value, the Company put development and implementation as
   its priority to consolidate its leading position in power generation sector
   while accelerated the optimisation of its business structure. As the production
   and operation were excellent in the first half of the year, a sustainable and
   healthy development was accomplished.

   A. Review of Businesses

      1. Power Generation Business

      The power generation businesses of the Company and its subsidiaries are
      primarily distributed across Beijing, Tianjin, Hebei Province, the Inner
      Mongolia Autonomous Region, Shanxi Province, Liaoning Province, Gansu Province,
      Jiangsu Province, Zhejiang Province, Yunnan Province, Fujian Province,
      Guangdong Province, Chongqing, Jiangxi Province, the Ningxia Autonomous Region,
      Qinghai Province and Sichuan Province.

      (1) Maintenance of safe and stable power production. During the Period, total
          power generation of the Company and its subsidiaries amounted to 90.9270
          billion kWh, representing a year-on-year decrease of approximately 2.08%.
          The accumulative on-grid power generation amounted to 85.8820 billion kWh,
          representing a year-on-year decrease of approximately 2.16%. Utilisation
          hours of generating units accumulated to 2,300 hours, representing a
          year-on-year decrease of 121 hours. During the Period, no casualties or
          material damage to the facilities occurred to the Company and its
          subsidiaries during the course of power production. The equivalent
          availability coefficient of the operational generating units amounted to
          91.81%.

      (2) The power generation structure showed a continuous improvement. Installed
          capacity increased by 474.7 MW during the Period. As of 30 June 2014, the
          installed capacity of generating units managed by the Company amounted to
          approximately 39,661.7 MW, among which coal-fired power accounted for
          32,890.8 MW or 82.93%, hydropower accounted for 4,934.8 MW or 12.44%, wind
          power accounted for 1,676.1 MW or 4.23%, and photovoltaic power accounted
          for 160 MW or 0.40%. The proportion of clean energy increased by 0.55
          percentage point over the end of the previous year.

      (3) Projects have been approved and the economy of scale further enhanced.
          During the Period, 3 power generation projects of the Company were approved
          by the State with details below:

          Coal-fired power project: Hebei Wei County 2×600 MW power plant;

          Wind power project: Ningxia Hongsibao phase I 100 MW wind power project;

          Hydropower capacity expansion project: Chongqing Haokou 10 MW hydropower
          capacity expansion project, proposed capacity after expansion is 135 MW.

      (4) Continuous development in energy conservation and emission reduction.
          During the Period, total coal consumption of the Company for power supply
          was 309.95 g/kWh, representing a year-on-year decrease of 3.69 g/kWh.
          Electricity consumption rate of power plants was 5.59%, representing a
          year-on-year increase of 0.09 percentage point. The total operation rate of
          desulfurisation facilities and the total overall desulfurisation efficiency
          rate amounted to 99.94% and 95.13%, respectively. The emission rate of
          sulfur dioxide, nitrogen oxides, waste water and smoke ash were 0.28g/kWh,
          0.42g/kWh, 21.73g/kWh and 0.08g/kWh, representing a year-on-year decrease
          of 24.32%, 56.25%, 56.54% and 27.27%, respectively.

       (5) Profitability of the power generation segment was strong. During the
          Period, gross profit of electric heating sales of the Group amounted to
          31.31%, representing a year-on-year increase of 4.83%. The power generation
          segment realised a total profit of RMB5,513 million, representing a
          year-on-year increase of 46.90% and maintaining a good trend of the
          Company's sustainable profitability.

      2. Coal Chemical and Coal Business

      During the Period, the production and development status of the Group's Duolun
      Coal Chemical Project with an annual output of 460,000 tonnes of polypropylene,
      the Keqi Coal-based Natural Gas Project with an annual output of 4 billion
      cubic meters of natural gas, and the Fuxin Coal-based Natural Gas Project with
      annual production scale of 4 billion cubic metres of natural gas, Datang
      Hulunbeier Fertiliser Company Limited ("Hulunbeier Fertiliser Company") and
      Inner Mongolia Datang International Xilinhaote Mining Company Limited
      ("Xilinhaote Mining Company") were as follows:

      (1) The Duolun Coal Chemical Project: During the Period, 68,200 tonnes of
          polypropylene were produced.

      (2) The Keqi Coal-based Natural Gas Project: A series of works for the project
          was still in trial production stage. As at 30 June 2014, 216 million
          standard cubic metres of natural gas were produced.

      (3) The Fuxin Coal-based Natural Gas Project: The project was approved and
          commenced construction in 2010. As at 30 June 2014, 90% of the land
          construction of the Fuxin Coal-based Natural Gas Project was completed, 95%
          of the equipment installation was completed; and 89% of the pipeline
          network was installed.

      (4) Hulunbeier Fertiliser Company: The company is mainly engaged in the
          development, construction and operation of energy and chemical projects
          such as urea and synthetic ammonia. The project has commenced production on
          1 October 2013. During the Period, a total of 132,100 tonnes of urea was
          produced.

      (5) Xilinhaote Mining Company: The company is mainly engaged in the
          development, construction and operation of Shengli Open-pit Coal Mine East
          Unit 2 Project. The coal extracted from the project was mainly used as the
          raw coal for the chemical projects of the Company. During the Period, a
          total of 3.4652 million tonnes of coal was produced.

   B. Major Financial Indicators and Analysis

      1. Operating Revenue

      During the Period, the Group realised an operating revenue of approximately
      RMB34,843 million, representing a decrease of approximately 5.86% over the
      Corresponding Period Last Year, among which revenue from electricity sales was
      approximately RMB30,365 million, decreased by approximately RMB821 million or
      approximately 2.63% over the Corresponding Period Last Year. The decrease in
      electricity sales revenue was mainly attributable to year-on-year decrease of
      on-grid power generation, and such decrease caused the operating revenue to
      decrease by approximately RMB670 million.

      2. Operating Costs

      During the Period, total operating costs of the Group amounted to approximately
      RMB26,786 million, representing a decrease of approximately RMB2,952 million or
      approximately 9.93% over the Corresponding Period Last Year. Among which, fuel
      cost accounted for approximately 56.46% of the operating costs, and
      depreciation cost accounted for approximately 19.70%. Since the unit price of
      standard coal for power generation decreased by approximately RMB58.26/tonne
      over the Corresponding Period Last Year, the fuel cost decreased by
      approximately RMB1,427 million as a result.

      3. Net Finance Costs

      During the Period, finance costs of the Group amounted to approximately
      RMB4,233 million, representing an increase of approximately RMB150 million or
      approximately 3.68% over the Corresponding Period Last Year. The increase in
      finance costs was mainly due to the expensing of interest costs of newly
      commenced projects transformation into fixed assets in 2013.

      4. Profit and Net Profit

      During the Period, total profit before tax of the Group amounted to
      approximately RMB4,136 million, representing an increase of approximately 3.05%
      over the Corresponding Period Last Year. Among which, the power generation
      segment registered an accumulated profit of RMB5,513 million, representing a
      year-on-year increase of approximately 46.90%. The steady year-on-year increase
      in the Group's profit of the power generation business was mainly due to the
      continuous year-on-year decrease in unit price of standard coal. During the
      Period, net profit attributable to equity holders of the Company amounted to
      approximately RMB2,029 million, representing an increase of approximately 0.47%
      over the Corresponding Period Last Year.

      5. Financial Position

      As at 30 June 2014, total assets of the Group amounted to approximately
      RMB301,744 million, representing an increase of approximately RMB3,264 million
      as compared to the end of 2013. The increase in total assets was primarily
      attributable to the increased investments in projects under construction and
      fixed assets by the Group.

      Total liabilities of the Group amounted to approximately RMB238,329 million,
      representing an increase of approximately RMB4,392 million over the end of
      2013. Of the total liabilities, non-current liabilities decreased by
      approximately RMB547 million over the end of 2013. The increase in total
      liabilities was mainly due to the dividend declared by the Group pending for
      payment as well as the issuance of super short-term debentures by the Company.
      Equity attributable to equity holders of the Company amounted to approximately
      RMB44,519 million, representing an increase of approximately RMB351 million
      over the end of 2013. Net asset value per share attributable to equity holders
      of the Company amounted to approximately RMB3.34, representing an increase of
      approximately RMB0.02 per share over the end of 2013.

      6. Liquidity

      As at 30 June 2014, the assets-to-liabilities ratio of the Group was
      approximately 78.98%. The net debt-to-equity ratio (i.e. (loans + short-term
      bonds + long-term bonds - cash and cash equivalents)/total equity) was
      approximately 291.2%.

      As at 30 June 2014, cash and cash equivalents of the Group amounted to
      approximately RMB7,526 million, among which deposits equivalent to
      approximately RMB96 million were foreign currency deposits. The Group had no
      entrusted deposits and overdue fixed deposits during the Period.

      As at 30 June 2014, short-term loans of the Group amounted to approximately
      RMB16,357 million, bearing annual interest rates ranging from 1.71% to 7.00%.
      Long-term loans (excluding those repayable within one year) amounted to
      approximately RMB141,681 million and long-term loans repayable within one year
      amounted to approximately RMB9,319 million. Long-term loans (including those
      repayable within one year) were at annual interest rates ranging from 1.13% to
      6.55%.

      Loans equivalent to approximately RMB1,141 million were denominated in US
      dollar. The Group paid close attention to foreign exchange market fluctuations
      and cautiously assessed risks.


      7. Welfare Policy

      As at 30 June 2014, the staff engaged in the major businesses of the Group
      totalled 22,914. The Group adopted the basic salary system on the basis of
      position-points salary distribution, and a variety of incentive mechanisms such
      as granting of allowances to employees working in remote areas with poor
      working conditions, long-term incentive policies for talented employees, as
      well as granting of allowances to employees and professionals working in
      special regions, in order to create a desirable environment that can attract
      and retain talents. Concerned about personal growth and occupational training
      as well as led by the strategy of developing a strong corporation with talents,
      the Group relied on a three-tier management organisational structure and
      implemented an all-staff training scheme for various levels.

      During the Period, 194,762 employees from various tiers attended trainings
      arranged by the Group, among which 2,803 employees attended professional skill
      training and on-the-job qualifications and certification training programmes
      hosted by China Datang Corporation; 1,044 employees attended professional skill
      training sessions hosted by the Company; and 190,915 employees attended various
      kinds of training sessions hosted by basic-level enterprises.

   C. Outlook for the Second Half of 2014

   In the second half of 2014, China's economy is expected to maintain steady
   growth and development momentum, and it is expected that the nationwide power
   demand and supply would remain in overall balance. With surplus balance in
   certain regions and a tight balance in others, the electricity consumption
   would accelerate steadily. The Company will continue to adhere to the
   value-focused and result-oriented principles; consolidate the basis for safe
   production; compete in power generation; control its costs strictly; and
   enhance its profitability, so as to ensure it could accomplish the operation
   target of the entire year as planned. The Company will also firmly optimise its
   business structure; enhance internal management; deepen its system reform; and
   adjust its development strategies, in order to enhance its core
   competitiveness.

    1. Practise safe production - continue to uphold the target of "Prevention of
       Nine Types of casualties and equipment failures for production safety"
       targets to facilitate the stability of the Company and boost performance
       with safe production.

    2. Focus on the competition in power generation expansion - continue to put
       power generation expansion as the priority for operational breakthrough and
       boosting results; and strive to meet the target that the utilisation hours
       of power generation units of the Company not less than the higher
       performance of the comparable units within the same regions.

    3. Control operating costs - place emphasis on both exploring revenue sources
       and saving costs as well as upscale the management on costs and expenses to
       ensure the achievement of the profit target for the entire year.

    4. Optimise business structure - place emphasis on consolidating and enhancing
       the competitive edges of the electricity segment, accelerate the
       optimisation and adjustment of business structure, and disposal of lowly
       efficient and inefficient assets as well as foster the approval of quality
       power projects.

    5. Commence construction of infrastructures - continue to build premium
       infrastructure projects; intensify the expenses control and target
       management for key construction projects; implement the accountability for
       project construction; enhance safety control and management of generating
       units for which construction has commenced; and improve the Company's
       portfolio structure of power generation units via optimisation and
       expansion.

    6. Strengthen energy conservation and emission reduction - guarantee that the
       Company could complete environment protection-related modifications as
       planned and greatly foster modifications for reduction in energy
       consumption and energy conservation management, so as to ensure the energy
       consumption would continuously decline and the discharge of various
       pollutants could meet requirements.

III. SHARE CAPITAL AND DIVIDENDS

     1. Share Capital

        As at 30 June 2014, the total share capital of the Company amounted to
        13,310,037,578 shares, divided into 13,310,037,578 shares of a nominal value of
        RMB1.00 each.

     2. Shareholding of Substantial Shareholders

        To the best knowledge of the directors of the Company, the persons below held
        the interests or short positions in the shares or underlying shares of the
        Company which were required to be disclosed to the Company under section 336 of
        the Securities and Futures Ordinance (the "SFO") (Chapter 571 of the Laws of
        Hong Kong) as at 30 June 2014:

                                       Approximate
                                       percentage     Approximate    Approximate
                                         to total     percentage to  percentage to
                                       issued share   total issued   total issued
               Class of     Number of    capital of    A shares of   H shares of
Name of        Shares      shares held   the Company   the Company   the Company
Shareholder                 (shares)        (%)            (%)           (%)

China Datang   A shares   4,138,977,414        31.10         41.41              -
Corporation    H shares   480,680,000(L)     3.61(L)             -        14.50(L)

Tianjin        A shares   1,296,012,600         9.74         12.97              -
Jinneng
Investment
Company

Hebei          A shares   1,281,872,927         9.63         12.83              -
Construction
& Investment
Group Co.,
Ltd.

Beijing        A shares    1,260,988,672        9.47        12.62              -
Energy
Investment
(Group) Co.,
Ltd.

Guo            H shares    233,308,000(L)     1.75(L)           -         7.04(L)
Guangchang
(Note)

Fosun          H shares    233,308,000(L)     1.75(L)            -        7.04(L)
Holdings
Limited
(Note)

Fosun          H shares    233,308,000(L)     1.75(L)            -        7.04(L)
International
Holdings
Limited
(Note)

Fosun          H shares    233,308,000(L)      1.75(L)            -       7.04(L)
International
Limited
(Note)


   (L) = Long Position (S) = Short Position (P) = Lending Pool

   Note: The 233,308,000 shares represent the same block of shares


     3. Dividends

     The Board does not recommend the payment of any interim dividend for 2014.

     4. Shareholding of the Directors and Supervisors

     As at 30 June 2014, Mr. Fang Qinghai, a director of the Company, was interested
     in 24,000 A shares of the Company, and Mr. Meng Fankui, a vice president of the
     Company, was interested in 5,000 A shares of the Company. Save as disclosed
     above, none of the directors, supervisors and chief executives of the Company
     nor their associates had any interests or short positions in the shares,
     underlying shares or debentures of the Company or any of its associated
     corporation (as defined in SFO) that were required to be notified to the
     Company and The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock
     Exchange") pursuant to Divisions 7 and 8 of Part XV of the SFO, or required to
     be recorded in the register mentioned in the SFO pursuant to section 352 of the
     SFO or otherwise required to be notified to the Company and the Hong Kong Stock
     Exchange pursuant to the Model Code for Securities Transactions by Directors of
     Listed Issuers as set out in Appendix 10 of the Rules Governing the Listing of
     Securities (the "Model Code") on the Hong Kong Stock Exchange (the "Listing
     Rules").

IV. SIGNIFICANT EVENTS

    1.  In accordance with the "Resolution on the Adjustments of Directors" which
        was considered and approved at the 2014 first extraordinary general meeting
        of the Company convened on 24 January 2014, Mr. Wu Jing holds the office as
        an executive director of the eighth session of the Board of the Company,
        and Mr. Cao Jingshan no longer serves as a director of the eighth session
        of the Board of the Company. In accordance with the "Resolution on the
        Election of the Vice-Chairperson of the Eighth Session of the Board" which
        was considered and approved at the seventh meeting of the eighth session of
        the Board of the Company convened on 24 January 2014, Mr. Wu Jing has been
        elected as the vice-chairperson of the eighth session of the Board.

    2.  The Company completed the issuance of "The First Tranche of Datang
        International Power Generation Co., Ltd.'s Super Short-term Debentures in
        2014" (the "First Tranche Super Short-term Debentures") on 28 February
        2014. The issuance amount for the First Tranche Super Short-term Debentures
        was RMB3 billion with a maturity of 180 days. The unit nominal value is
        RMB100 and the issuance interest rate is at 5.00%.

    3.  The Company completed the issuance of "The Second Tranche of Datang
        International Power Generation Co., Ltd.'s Super Short-term Debentures in
        2014" (the "Second Tranche Super Short-term Debentures") on 10 April 2014.
        The issuance amount for the Second Tranche Super Short-term Debentures was
        RMB4 billion with a maturity of 100 days. The unit nominal value is RMB100
        and the issuance interest rate is at 4.95%.

    4.  In accordance with the resolution of the first meeting of the enlarged
        group leaders of the second meeting of the fifth session of staff
        representative meeting of the Company held on 3 April 2014, Mr. Guan
        Zhenquan would cease to serve as the staff representative's supervisor of
        the Company due to job reassignment. It was unanimously resolved at the
        meeting that Ms. Guo Hong would serve as the staff representative's
        supervisor of the eighth session of the supervisory committee of the
        Company.

    5.  The Company completed the issuance of "The Third Tranche of Datang
        International Power Generation Co., Ltd.'s Super Short-term Debentures in
        2014" (the "Third Tranche Super Short-term Debentures") on 25 April 2014.
        The issuance amount for the Third Tranche Super Short-term Debentures was
        RMB3 billion with a maturity of 180 days. The unit nominal value is RMB100
        and the issuance interest rate is at 4.76%.

    6.  In accordance with the 2013 annual profit distribution plan of the Company
        which was considered and approved at the 2013 annual general meeting
        convened on 12 June 2014, the Company completed the payment of dividends
        for the year of 2013 on 8 August 2014. The cash dividends per share paid
        was RMB0.12 (including tax), and the cash dividends per 10 shares paid was
        RMB1.2 (including tax).

    7.  The Company completed the issuance of "The Fourth Tranche of Datang
        International Power Generation Co., Ltd.'s Super Short-term Debentures in
        2014" (the "Fourth Tranche Super Short-term Debentures") on 17 July 2014.
        The issuance amount for the Fourth Tranche Super Short-term Debentures was
        RMB3 billion with a maturity of 270 days. The unit nominal value is RMB100
        and the issuance interest rate is at 4.58%.

    8.  On 7 July 2014, the Company entered into the Framework Agreement for
        Reorganisation of Coal-to-chemical Segment and Related Projects (the
        "Reorganisation Framework Agreement") with China Reform Holdings
        Corporation Ltd. ("China Reform Corporation") for the proposed
        reorganisation of the Company's coal-to-chemical business segment and
        related projects. The scope of the reorganisation includes Datang Inner
        Mongolia Duolun Coal Chemical Company Limited, Inner Mongolia Datang
        International Keshiketeng Qi Coal-based Gas Company Limited, Liaoning
        Datang International Fuxin Coal-to-gas Company Ltd., Hulunbeier
        Fertiliser Company, Xilinhaote Mining Company and the respective
        ancillary facilities and affiliated projects. As at the date of
        this announcement, the reorganisation is in progress in a steady manner.

    9.  The Company completed the issuance of the First Tranche of Medium-Term
        Notes of Datang International Power Generation Co., Ltd. (the "First
        Tranche Medium-Term Notes 2014") on 22 August 2014. The issuance amount of
        the First Tranche Medium-Term Notes 2014 was RMB3.5 billion with a maturity
        of 5 years. The nominal value is RMB100 and the interest rate is at 5.20%
        per annum.

V. PURCHASE, SALE AND REDEMPTION OF THE COMPANY'S LISTED SECURITIES

    During the Period, the Group did not purchase, sell or redeem any of the listed
    securities of the Company.

VI. COMPLIANCE WITH THE CODE ON CORPORATE GOVERNANCE PRACTICES

    To the knowledge of the Board, the Company complied with all the code
    provisions under the Corporate Governance Code (the "Code") as set out in
    Appendix 14 to the Listing Rules for the Period, with the exception of the
    following:

    During the Period, the legal action which the directors may face is covered in
    the internal risk management and control of the Company, and therefore
    insurance arrangements for directors have not been made.

    During the Period, the Nomination Committee, the Remuneration and Appraisal
    Committee, the Audit Committee and the Strategic Development and Risk Control
    Committee set up by the Company carried out their work in accordance with their
    respective terms of reference. Their terms of reference have covered the
    responsibilities to be performed as required by the code provisions A.5.2,
    B.1.2 and C.3.3 of the Code. Only differences in expressions or sequence exist
    between such terms of reference and the afore-said code provisions.

VII. COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS OF
    LISTED ISSUERS

    The Company has adopted a code of conduct regarding directors' securities
    transaction on terms no less exacting than the required standard set out in the
    Model Code.

    Upon specific enquiries made to all the directors of the Company and in
    accordance with the information provided, the Board confirmed that all
    directors of the Company have complied with the provisions under the Model Code
    as set out in Appendix 10 to the Listing Rules during the Period.

VIII. AUDIT COMMITTEE

    The Audit Committee has reviewed the accounting standards adopted by the Group
    with the management of the Company. They have also discussed matters regarding
    internal controls and the interim financial statements, including the review of
    the financial and accounting information of the Group for the Period.

    The Audit Committee considers that the 2014 interim financial report of the
    Group has complied with the applicable accounting standards, and that the Group
    has made appropriate disclosures thereof.

                                                  By Order of the Board

                                                        Zhou Gang

                                                  Secretary to the Board

Beijing, the PRC, 27 August 2014

As at the date of this announcement, the directors of the Company are:

Chen Jinhang, Hu Shengmu, Wu Jing, Fang Qinghai, Zhou Gang,
Cao Xin, Cai Shuwen, Liu Haixia, Guan Tiangang, Yang Wenchun,
Dong Heyi*, Ye Yansheng*, Zhao Jie*, Jiang Guohua*, Feng Genfu*

* independent non-executive directors


CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME

For the six months ended 30 June 2014

                                                      Six months ended 30 June
                                                      ------------------------
                                      Note                2014            2013
                                                      ------------  -----------
                                                         RMB'000       RMB'000
                                                      (unaudited)   (unaudited)

Operating revenue                     4              34,842,547      37,010,016

Operating costs

Fuel for power and heat generation                    (13,728,261) (15,774,146)

Fuel for coal sales                                    (1,395,840)  (2,366,751)

Depreciation                                           (5,277,807)  (4,882,352)

Repairs and maintenance                                  (996,675)  (1,025,691)

Salaries and staff welfare                             (1,277,592)  (1,593,483)

Local government surcharges                              (361,069)    (366,275)

Others                                                 (3,748,593)  (3,729,257)
                                                      ------------  -----------
Total operating costs                                 (26,785,837) (29,737,955)
                                                      ------------  -----------
Operating profit                                         8,056,710    7,272,061

Share of profits of associates                             338,811      531,154

Share of (losses)/profits of joint                       (154,465)       46,630
ventures

Investment income                                           86,226      223,429

Other losses                                                     -     (16,653)

Interest income                                             41,855       39,958

Finance costs                         6                (4,233,209)  (4,083,093)
                                                      ------------  -----------
Profit before tax                                        4,135,928    4,013,486

Income tax expense                    7                (1,272,833)    (876,890)
                                                      ------------  -----------
Profit for the period                                    2,863,095    3,136,596
                                                      ------------  -----------


                                                     Six months ended 30 June
                                                    -------------------------
                                      Note             2014           2013
                                                    -----------    ----------
                                                     RMB'000       RMB'000
                                                   (unaudited)   (unaudited)

Other comprehensive income:

Items that may be reclassified to
profit or loss:

Fair value loss on available-for-sale
investments                                           (114,022)     (135,011)

Share of other comprehensive income
of associates                                             (895)           970

Exchange differences on translating
foreign operations                                       2,227        (7,677)

Income tax on items that may be
reclassified to profit or loss                           1,481          7,219
                                                    -----------    ----------
Other comprehensive income for the period,
net of tax                                            (111,209)     (134,499)
                                                    -----------    ----------
Total comprehensive income for the period             2,751,886     3,002,097
                                                    ===========    ==========

Profit for the period attributable to:

Owners of the Company                                 2,028,713     2,019,283

Non-controlling interests                               834,382     1,117,313
                                                    -----------    ----------
                                                      2,863,095     3,136,596
                                                    ===========    ==========
Total comprehensive income for the period
attributable to:

Owners of the Company                                 1,917,504     1,884,784

Non-controlling interests                               834,382     1,117,313
                                                    -----------    ----------
                                                      2,751,886     3,002,097
                                                    ===========    ==========

                                                         RMB          RMB
                                                     (unaudited)  (unaudited)

Earnings per share
Basic and diluted                     8                  0.1524        0.1517
                                                    ===========    ==========


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2014

                                                        At            At
                                                    30 June     31 December
                                        Note           2014           2013
                                                   ------------   -----------
                                                       RMB'000       RMB'000
                                                    (unaudited)    (audited)

ASSETS

Non-current assets

Property, plant and equipment                       246,667,001   243,436,494

Investment properties                                   461,812       467,267

Intangible assets                                     2,860,120     2,882,391

Development costs                                            11            51

Investments in associates                             7,477,416     6,900,077

Investments in joint ventures                         5,249,109     5,262,631

Available-for-sale investments                        4,157,315     4,267,757

Deferred housing benefits                                36,840        49,027

Long-term entrusted loans to an associate               100,171       335,977

Deferred tax assets                                   1,774,629     1,658,693

Other non-current assets                              1,028,485     1,138,301
                                                   ------------   -----------
                                                    269,812,909   266,398,666
                                                   ------------   -----------
Current assets

Inventories                                           3,326,814     3,682,099

Accounts and notes receivables          9             9,699,535    10,101,400

Prepayments and other receivables                     9,927,513     9,579,892

Short-term entrusted loans to related parties           551,232       616,381

Tax recoverable                                          30,464        35,330

Current portion of long-term entrusted loans
to an associate                                         335,000       185,000

Cash and cash equivalents                             7,525,592     7,880,844

Restricted bank deposits                                534,857             -
                                                   ------------   -----------
                                                     31,931,007    32,080,946
                                                   ------------   -----------
TOTAL ASSETS                                        301,743,916   298,479,612
                                                   ============   ===========

                                                       At            At
                                                     30 June     31 December
                                         Note         2014           2013
                                                 ------------     -----------
                                                     RMB'000       RMB'000
                                                   (unaudited)    (audited)

EQUITY AND LIABILITIES

Capital and reserves

Share capital                            10        13,310,038      13,310,038

Reserves                                           27,298,452      25,768,061

Retained earnings

  Proposed dividends                                           -    1,597,205

  Others                                            3,910,693       3,492,494
                                                 ------------     -----------
Equity attributable to owners of the Company       44,519,183      44,167,798

Non-controlling interests                          18,895,247      20,374,790
                                                 ------------     -----------
Total equity                                       63,414,430      64,542,588
                                                 ------------     -----------
Non-current liabilities

Long-term loans                                   141,681,422     138,054,247

Long-term bonds                                     9,430,395      14,417,779

Deferred income                                     1,997,935       1,796,663

Deferred tax liabilities                              626,264         622,415

Provisions                                             40,875          40,875

Other non-current liabilities                       9,606,963       8,998,875
                                                 ------------     -----------
                                                  163,383,854     163,930,854
                                                 ------------     -----------
Current liabilities

Accounts payables and accrued            11        27,519,780      27,518,624
liabilities

Taxes payables                                      1,075,694       1,109,441

Dividends payables                                  3,303,767         147,273

Short-term loans                                   16,357,242      18,239,234

Short-term bonds                                   10,400,000       5,700,000

Current portion of non-current liabilities         16,289,149      17,291,598
                                                 ------------     -----------
                                                   74,945,632      70,006,170
                                                 ------------     -----------
Total liabilities                                 238,329,486     233,937,024
                                                 ------------     -----------
TOTAL EQUITY AND LIABILITIES                      301,743,916     298,479,612
                                                 ============     ===========
Net current liabilities                          (43,014,625)    (37,925,224)
                                                 ============     ===========
Total assets less current liabilities             226,798,284     228,473,442
                                                 ============     ===========


NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2014

1. BASIS OF PREPARATION

   These condensed consolidated financial statements have been prepared in
   accordance with International Accounting Standard 34 "Interim Financial
   Reporting" issued by the International Accounting Standards Board and the
   applicable disclosures required by the Rules Governing the Listing of
   Securities on The Stock Exchange of Hong Kong Limited.

   At 30 June 2014, a significant portion of the funding requirements of the
   Company and its subsidiaries (collectively referred to as the "Group") for
   capital expenditures was satisfied by short-term borrowings. Consequently, at
   30 June 2014, the Group had net current liabilities of approximately RMB43.01
   billion. The Group had significant undrawn borrowing facilities, subject to
   certain conditions, amounting to approximately RMB247.88 billion and may
   refinance and/or restructure certain short-term borrowings into long-term
   borrowings and will also consider alternative sources of financing, where
   applicable. The directors of the Company are of the opinion that the Group will
   be able to meet its liabilities as and when they fall due within the next
   twelve months and have prepared these financial statements on a going concern
   basis.

   These condensed consolidated financial statements should be read in conjunction
   with the 2013 annual financial statements. The accounting policies and methods
   of computation used in the preparation of these condensed consolidated
   financial statements are consistent with those used in the annual financial
   statements for the year ended 31 December 2013.

   These condensed consolidated financial statements are presented in Renminbi
   ("RMB"), which is the Company's functional and presentation currency, and all
   values are rounded to the nearest thousand ("RMB'000"), unless otherwise
   stated.

2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

   In the current period, the Group has adopted all the new and revised
   International Financial Reporting Standards ("IFRSs") issued by the
   International Accounting Standards Board that are relevant to its operations
   and effective for its accounting year beginning on 1 January 2014. IFRSs
   comprise International Financial Reporting Standards; International Accounting
   Standards; and Interpretations. The adoption of these new and revised IFRSs did
   not result in significant changes to the Group's accounting policies,
   presentation of the Group's financial statements and amounts reported for the
   current period and prior years.

   The Group has not applied the new IFRSs that have been issued but are not yet
   effective. The Group has already commenced an assessment of the impact of these
   new IFRSs but is not yet in a position to state whether these new IFRSs would
   have a material impact on its results of operations and financial position.

3. FAIR VALUE MEASUREMENTS

   Fair value is the price that would be received to sell an asset or paid to
   transfer a liability in an orderly transaction between market participants at
   the measurement date. The following disclosures of fair value measurements use
   a fair value hierarchy that categorises into three levels the inputs to
   valuation techniques used to measure fair value:

   Level 1 inputs: quoted prices (unadjusted) in active markets for identical
                   assets or liabilities that the Group can access at the
                   measurement date.

   Level 2 inputs: inputs other than quoted prices included within level 1 that
                   are observable for the asset or liability, either directly
                   or indirectly.

   Level 3 inputs: unobservable inputs for the asset or liability.

   The Group's policy is to recognise transfers into and transfers out of any of
   the three levels as of the date of the event or change in circumstances that
   caused the transfer.

   The carrying amounts of the Group's financial assets and financial liabilities
   as reflected in the condensed consolidated statement of financial position
   approximate their respective fair values.

   Disclosures of level in fair value hierarchy at 30 June 2014:

   Description                                    Fair value measurements
                                                       using Level 1:
                                                      At              At
                                                   30 June      31 December
                                                      2014           2013
                                                    --------       --------
                                                     RMB'000        RMB'000
                                                   (unaudited)    (audited)

   Recurring fair value measurements:

   Available-for-sale investments

   Equity securities listed in Hong Kong             276,511        374,262

   Equity securities listed outside Hong Kong         75,438         88,129
                                                    --------       --------
   Total recurring fair value measurements           351,949        462,391
                                                    ========       ========
                                                                                                        
4. OPERATING REVENUE

                                                  Six months ended 30 June
                                                 ---------------------------
                                                     2014            2013
                                                 -----------     -----------
                                                   RMB'000         RMB'000
                                                 (unaudited)     (unaudited)

   Sales of electricity                           30,364,686      31,186,156

   Heat supply                                       686,620         690,810

   Sales of coal                                   1,445,638       2,496,282

   Sales of chemical products                      1,403,560       1,788,421

   Others                                            942,043         848,347
                                                 -----------     -----------
                                                  34,842,547      37,010,016
                                                 ===========     ===========


5. SEGMENT INFORMATION

   Executive directors and certain senior management (including chief accountant)
   of the Company (collectively referred to as the "Senior Management") perform
   the function as chief operating decision makers. The Senior Management reviews
   the internal reporting of the Group in order to assess performance and allocate
   resources. Senior Management has determined the operating segments based on
   these reports.

   Senior Management considers the business from a product perspective. Senior
   Management primarily assesses the performance of power generation, coal and
   chemical separately. Other operating activities primarily include sales of coal
   ash, etc., and are included in "other segments".

   Senior Management assesses the performance of the operating segments based on a
   measure of profit before tax prepared under China Accounting Standards for
   Business Enterprises ("PRC GAAP").

   Segment profits or losses do not include dividend income from
   available-for-sale investments and gain or loss on disposals of
   available-for-sale investments. Segment assets exclude deferred tax assets and
   available-for-sale investments. Segment liabilities exclude the current tax
   liabilities and deferred tax liabilities. Sales between operating segments are
   marked to market or contracted close to market price and have been eliminated
   at consolidation level. Unless otherwise noted below, all such financial
   information in the segment tables below is prepared under PRC GAAP.


                            Power
                          generation     Coal       Chemical       Other
                           segment      segment      segment     segments      Total
                         -----------   ----------   ----------  ----------   ----------
                           RMB'000      RMB'000      RMB'000      RMB'000     RMB'000
                         (unaudited)  (unaudited)  (unaudited)  (unaudited) (unaudited)

Six months ended 30 June 2014

Revenue from external     31,231,502    1,451,423    1,409,422    750,200    34,842,547
customers

Intersegment revenue         504,538   10,401,319        6,575     54,053    10,966,485

Segment profit/(loss)      5,513,299      110,133  (1,367,420)  (158,195)     4,097,817

At 30 June 2014

Segment assets           203,222,903   27,584,838   75,125,283 11,049,836   316,982,860

Segment liabilities      167,637,130   20,083,476   63,620,990  1,779,489   253,121,085
                         ===========   ==========   ==========  =========   ===========
Six months ended 30
June 2013

Revenue from external     32,198,456    2,437,295    1,790,382    583,883    37,010,016
customers

Intersegment revenue         389,091    9,723,034       81,312     77,979    10,271,416

Segment profit/(loss)      3,773,923      492,666    (519,031)    202,958     3,950,516

                          (audited)    (audited)    (audited)    (audited)   (audited)

At 31 December 2013

Segment assets           197,049,059   29,266,061   73,422,380 10,459,325   310,196,825

Segment liabilities      163,790,164   20,049,043   59,735,252  1,648,032   245,222,491
                         ===========   ==========   ==========  =========   ===========
                                                
                                                    Six months ended 30 June
                                                    -------------------------
                                                       2014           2013
                                                      RMB'000       RMB'000
                                                    ----------     ----------
                                                    (unaudited)   (unaudited)

Reconciliations of segment profit or loss:

Total profit or loss of reportable segments          4,097,817      3,950,516

Dividend income from available-for-sale                      -         22,539
investments

Elimination of intersegment profits                   (17,125)       (87,594)

IFRS adjustment on amortisation of monetary           (12,187)       (12,486)
housing benefits

IFRS adjustment on reversal of general provision

on mining funds                                         67,423        140,511
                                                    ----------     ----------
Consolidated profit before tax                       4,135,928      4,013,486
                                                    ==========     ==========
                                                                                                        
                                                    Six months ended 30 June
                                                    -------------------------
                                                       2014           2013
                                                    ----------     ----------
                                                      RMB'000       RMB'000
                                                    (unaudited)   (unaudited)

Revenue from major customers:

Power generation segment

North China Branch of State Grid Corporation of      7,908,673              -
China

North China Grid Company Limited                                -   7,935,912

State Grid Zhejiang Electric Power Company           3,058,136      2,426,693

Guangdong Power Grid Corporation                     3,018,124      3,124,055

Jibei Electric Power Company Limited                 2,866,115      2,680,594

Jiangsu Electric Power Company                       2,012,977      3,863,071

State Grid Corporation of China                              -      3,089,436
                                                    ==========     ==========


 6. FINANCE COSTS

                                                    Six months ended 30 June
                                                    -------------------------
                                                       2014          2013
                                                    ----------     ----------
                                                       RMB'000      RMB'000
                                                     (unaudited)  (unaudited)

   Interest expense                                 6,036,236      5,812,681

   Less: amount capitalised in property, plant    (1,841,669)    (1,757,976)
   and equipment                                   ----------     ----------

                                                    4,194,567      4,054,705

   Exchange loss/(gain), net                            8,277       (14,021)

   Others                                              30,365         42,409
                                                    ----------     ----------
                                                    4,233,209      4,083,093
                                                    ==========     ==========
7. INCOME TAX EXPENSE

                                                    Six months ended 30 June
                                                    ------------------------
                                                        2014          2013
                                                    ----------     ----------
                                                      RMB'000        RMB'000
                                                     (unaudited)  (unaudited)

   Current tax                                       1,385,952      1,100,031

   Deferred tax                                      (113,119)      (223,141)
                                                    ----------     ----------
                                                     1,272,833        876,890
                                                    ==========     ==========

   Income tax is provided on the basis of the statutory profit for financial
   reporting purposes, adjusted for income and expense items, which are not
   assessable or deductible for income tax purposes.

   The applicable People's Republic of China ("PRC") Enterprise Income Tax rate of
   the Company and its subsidiaries is 25% (six months ended 30 June 2013: 25%).
   Certain subsidiaries located in western region in the PRC enjoyed PRC
   Enterprise Income Tax rate of 15% before 2021 (six months ended 30 June 2013:
   2021) when such income tax rate has changed to 25% thereafter.

   In addition, certain subsidiaries are exempted from the PRC Enterprise Income
   Tax for two years starting from the first year of commercial operation followed
   by a 50% exemption of the applicable tax rate for the next three years.

8. EARNINGS PER SHARE Basic earnings per share

   The calculation of basic earnings per share attributable to owners of the
   Company is based on the profit for the period attributable to owners of the
   Company of RMB2,028,713 thousand (six months ended 30 June 2013: RMB2,019,283
   thousand) and the weighted average number of ordinary shares of 13,310,038
   thousand (six months ended 30 June 2013: 13,310,038 thousand) in issue during
   the period.

   Diluted earnings per share

   During the six months ended 30 June 2014 and 2013, the Company did not have any
   dilutive potential ordinary shares. Therefore, diluted earnings per share is
   equal to basic earnings per share.

9. ACCOUNTS AND NOTES RECEIVABLES

   The Group usually grants credit period of approximately one month to local
   power grid customers and coal purchase customers from the month end after sales
   and sale transactions made, respectively. The ageing analysis of the accounts
   and notes receivables is as follows:

                                                     At              At
                                                   30 June     31 December
                                                    2014            2013
                                                  ----------     ----------
                                                   RMB'000         RMB'000
                                                 (unaudited)      (audited)

Within one year                                    8,760,849      9,809,030

Between one to two years                             685,980         86,754

Between two to three years                           130,485        180,101

Over three years                                     122,221         25,515
                                                  ----------     ----------
                                                   9,699,535     10,101,400
                                                  ==========     ==========
                                                                                                
10. SHARE CAPITAL

                                                          At              At
                                                        30 June      31 December
                                                         2014            2013
                                                       ----------     ----------
                                                       RMB'000        RMB'000
                                                      (unaudited)     (audited)

    Registered, issued and fully paid:

    9,994,360,000 (At 31 December 2013:
    9,994,360,000)

    A shares of RMB1 each                               9,994,360      9,994,360

    3,315,677,578 (At 31 December 2013:
    3,315,677,578)

    H shares of RMB1 each                               3,315,678      3,315,678
                                                       ----------     ----------
                                                       13,310,038     13,310,038
                                                       ==========     ==========
                                                                                                        
11. ACCOUNTS PAYABLES AND ACCRUED LIABILITIES

                                                          At              At
                                                        30 June       31 December
                                                         2014            2013
                                                       ----------     ----------
                                                        RMB'000        RMB'000
                                                      (unaudited)     (audited)

    Accounts and notes payables                        12,919,583     12,105,937

    Other payables and accrued liabilities             14,600,197     15,412,687
                                                       ----------     ----------
                                                       27,519,780     27,518,624
                                                       ==========     ==========
    The ageing analysis of the accounts and notes
    payables is as follows:

                                                          At              At
                                                        30 June      31 December
                                                         2014            2013
                                                       ----------     ----------
                                                         RMB'000        RMB'000
                                                      (unaudited)     (audited)

    Within one year                                    11,358,996     10,982,287

    Between one to two years                            1,364,396        557,375

    Between two to three years                             49,670        240,683

    Over three years                                      146,521        325,592
                                                       ----------     ----------
                                                       12,919,583     12,105,937
                                                       ==========     ==========
                                                                                                        
12. EVENTS AFTER THE REPORTING PERIOD

   (a) On 7 July 2014, the Company entered into the Framework Agreement for
       Reorganisation with China Reform Holdings Corporation Ltd. ("China Reform
       Corporation") for the proposed reorganisation of the Company's
       coal-to-chemical business segment and related projects (the
       "Reorganisation"). The transaction price of the Reorganisation will be
       negotiated and determined pursuant to the State laws, regulations and the
       relevant requirements of the relevant government departments and based on
       the audit and asset evaluation result. China Reform Corporation will,
       through reorganisation cooperation or acquisition of equity interests,
       acquire assets or equity interests of the coal-to-chemical business segment
       and related projects of the Company.

   (b) The Company completed the issuance of "The Fourth Tranche of Datang
       International Power Generation Co., Ltd.'s Super Short-term Debentures in
       2014" (the "Current Tranche Super Short-term Debentures") on 17 July 2014.
       The issuance amount for the Current Tranche Super Short-term Debentures was
       RMB3 billion with a maturity of 270 days. The unit nominal value is RMB100
       and the issuance interest rate is at 4.58%. Bank of China Limited and Ping
       An Bank Co., Ltd. act as the joint lead underwriters for the Current
       Tranche Super Short-term Debentures. The proceeds from the Current Tranche
       Super Short-term Debentures will be used to replace part of the loans of
       the Company, adjust its debt structure, lower its financing costs and
       replenish the working capital of the Company.

   (c) The Company completed the issuance of "The First Tranche of Datang
       International Power Generation Co., Ltd.'s Medium-term Notes in 2014" (the
       "Current Tranche Medium-term Notes") on 22 August 2014. The issuance amount
       for the Current Tranche Medium-term Notes was RMB3.5 billion with a
       maturity of 5 years. The nominal value is RMB100 and the interest rate is
       at 5.20% per annum. Agricultural Bank of China Limited which acts as the
       lead underwriter and bookrunner and China Development Bank Corporation
       which acts as the joint lead underwriter, make a public offering of the
       Current Tranche Medium-term Notes in the nationwide interbank bond market
       by way of book building and centralised placement. The proceeds from the
       Current Tranche Medium-term Notes will be primarily used to replenish the
       working capital of the Company and repay the bank loans in order to adjust
       its debt structure and lower its financing costs.

   DIFFERENCES BETWEEN FINANCIAL STATEMENTS

   For the six months ended 30 June 2014

   The condensed consolidated financial statements which are prepared by the Group
   in conformity with International Financial Reporting Standards ("IFRS") differ
   in certain respects from China Accounting Standards for Business Enterprises
   ("PRC GAAP"). Major differences between IFRS and PRC GAAP ("GAAP Differences"),
   which affect the net assets and net profit of the Group, are summarised as
   follows:

                                                            Net assets
                                                      -------------------------
                                                        At             At
                                                      30 June      31 December
                                         Note           2014           2013
                                                      ----------     ----------
                                                     RMB'000        RMB'000
                                                    (unaudited)     (audited)

Net assets attributable to owners of the

Company under IFRS                                    44,519,183    44,167,798

Impact of IFRS 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)            (36,840)       (49,027)

Difference in accounting treatment on
    mining funds                         (c)           (300,852)      (300,117)

Applicable deferred tax impact of the
    above

    GAAP Differences                                       6,245        (1,877)

Non-controlling interests' impact of the
    above

    GAAP Differences after tax                          (22,921)        (2,327)
                                                      ----------     ----------
                                                                                                        
Net assets attributable to owners of the
    Company

  under PRC GAAP                                      44,271,281     43,920,916
                                                      =========      ==========


- 27 -

                                                          Net profit
                                                  --------------------------
                                                   Six months ended 30 June
                                                  ----------      ----------
                                        Note         2014           2013
                                                  ----------      ----------
                                                     RMB'000      RMB'000
                                                   (unaudited)  (unaudited)

Profit for the period attributable to
owners of the Company under IFRS                   2,028,713       2,019,283

Impact of IFRS adjustments:

Difference in accounting treatment on

monetary housing benefits               (b)           12,187          12,486

Difference in accounting treatment on

mining funds                            (c)         (67,423)       (140,511)

Applicable deferred tax impact of the
above

GAAP Differences                                       8,122           2,079

Non-controlling interests' impact of
the above

GAAP Differences after tax                           (6,666)         (4,963)
                                                  ----------      ----------
Net profit for the period attributable
to owners of


the Company under PRC GAAP                         1,974,933       1,888,374
                                                  ==========      ==========

Notes:

(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 PRC GAAP, the monetary housing benefits provided to employees who started
    work before 31 December 1998 were directly deducted from the retained earnings
    and statutory public welfare fund after approval by the general meeting of the
    Company and its subsidiaries.

    Under IFRS, these benefits are recorded as deferred assets and amortised on a
    straight-line basis over the estimated remaining average service lives of
    relevant employees.

(c) Difference in accounting treatment on mining funds

    Under PRC GAAP, accrual of future development and work safety expenses are
    included in respective product cost or current period profit or loss and
    recorded in a specific reserve accordingly. When such future development and
    work safety expenses are applied and related to revenue expenditures, specific
    reserve is directly offset when expenses incurred. When capital expenditures
    are incurred, they are included in construction in progress and transferred to
    fixed assets when the related assets reach the expected use condition. They are
    then offset against specific reserve based on the amount included in fixed
    assets 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 fund
    for future development and work safety through transferring from retained
    earnings to restricted reserve. When qualifying revenue expenditures are
    incurred, such expenses are recorded in the profit or loss as incurred. When
    capital expenditures are incurred, an amount is transferred to property, plant
    and equipment and is depreciated in accordance with the depreciation policy of
    the Group. Internal equity items transfers take place based on the actual
    application amount of future development and work safety expenses whereas
    restricted reserve is offset against retained earnings to the extent of zero.

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