HUANENG POWER INTERNATIONAL INC | CIK:0000929058 | 3

  • Filed: 4/12/2018
  • Entity registrant name: HUANENG POWER INTERNATIONAL INC (CIK: 0000929058)
  • Generator: Unknown
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/929058/000114420418020280/0001144204-18-020280-index.htm
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    • ifrs-full:DisclosureOfRevenueExplanatory

    5
    Revenue and segment information

    Revenues recognized during the year are as follows:
     
       
    For the year ended 31 December
    		  
       
    2017
    		    
    2016
    		    
    2015
    		  
                       
    Sales of power and heat
    		    
    148,925,442
    		      
    112,794,536
    		      
    127,849,408
    		  
    Sales of coal
    		    
    1,143,299
    		      
    2,909
    		      
    6,839
    		  
    Port service
    		    
    232,360
    		      
    237,347
    		      
    211,685
    		  
    Transportation service
    		    
    73,830
    		      
    105,505
    		      
    104,721
    		  
    Others
    		    
    2,084,513
    		      
    673,939
    		      
    732,220
    		  
                             
    Total
    		    
    152,459,444
    		      
    113,814,236
    		      
    128,904,873
    		  

    Directors and certain senior management of the Company perform the function as the chief operating decision maker (collectively referred to as the "senior management"). The senior management reviews the internal reporting of the Company and its subsidiaries in order to assess performance and allocate resources. The Company has determined the operating segments based on these reports. The reportable segments of the Company are the PRC power segment, Singapore segment and all other segments (mainly including port and transportation operations). No operating segments have been aggregated to form a reportable segment.

    Senior management assesses the performance of the operating segments based on a measure of profit before income tax expense under China Accounting Standard for Business Enterprises ("PRC GAAP") excluding dividend income received from available-for-sale financial assets, gains on disposal of available-for-sale financial assets and operating results of the centrally managed and resource allocation functions of headquarters ("Segment results"). Other information provided, except as noted below, to the senior management of the Company is measured under PRC GAAP.

    Segment assets exclude prepaid income tax, deferred income tax assets, available-for-sale financial assets and assets related to the centrally managed and resource allocation functions of headquarters that are not attributable to any operating segment ("corporate assets"). Segment liabilities exclude current income tax liabilities, deferred income tax liabilities and liabilities related to the centrally managed and resource allocation functions of headquarters that are not attributable to any operating segment ("corporate liabilities"). These are part of the reconciliation to total assets and liabilities of consolidated statement of financial position.

    All sales among the operating segments have been eliminated as internal transactions when preparing consolidated financial statements.
     
       
    (Under PRC GAAP)
    		  
       
    PRC power
    segment
    		    
    Singapore
    segment
    		    
    All other
    segments
    		    
    Total
    		  
    For the year ended 31 December 2017
    		                        
                             
    Total revenue
    		    
    142,067,629
    		      
    10,078,031
    		      
    694,405
    		      
    152,840,065
    		  
    Inter-segment revenue
    		    
    -
    		      
    -
    		      
    (380,621
    )
    		    
    (380,621
    )
                                     
    Revenue from external customers
    		    
    142,067,629
    		      
    10,078,031
    		      
    313,784
    		      
    152,459,444
    		  
                                     
    Segment results
    		    
    2,417,073
    		      
    (577,458
    )
    		    
    302,191
    		      
    2,141,806
    		  
                                     
    Interest income
    		    
    126,927
    		      
    70,756
    		      
    1,223
    		      
    198,906
    		  
    Interest expense
    		    
    (9,026,064
    )
    		    
    (450,928
    )
    		    
    (145,112
    )
    		    
    (9,622,104
    )
    Impairment loss
    		    
    (1,167,751
    )
    		    
    (994
    )
    		    
    (19,742
    )
    		    
    (1,188,487
    )
    Depreciation and amortization
    		    
    (18,081,299
    )
    		    
    (856,979
    )
    		    
    (189,764
    )
    		    
    (19,128,042
    )
    Net loss on disposal of non-current assets
    		    
    (580,345
    )
    		    
    (995
    )
    		    
    (3
    )
    		    
    (581,343
    )
    Share of profits less losses of associates and joint ventures
    		    
    (7,318
    )
    		    
    -
    		      
    307,923
    		      
    300,605
    		  
    Income tax expense
    		    
    (1,667,234
    )
    		    
    99,150
    		      
    (5,386
    )
    		    
    (1,573,470
    )

             
    (Under PRC GAAP)
    		  
       
    PRC power segment
    		    
    Singapore
    segment
    		    
    All other segments
    		    
    Total
    		  
    For the year ended 31 December 2016 (Restated*)
    		                        
    Total revenue
    		    
    129,101,375
    		      
    8,758,822
    		      
    634,965
    		      
    138,495,162
    		  
    Inter-segment revenue
    		    
    -
    		      
    -
    		      
    (344,866
    )
    		    
    (344,866
    )
    Revenue from external customers
    		    
    129,101,375
    		      
    8,758,822
    		      
    290,099
    		      
    138,150,296
    		  
    Segment results
    		    
    17,633,734
    		      
    (282,703
    )
    		    
    (38,433
    )
    		    
    17,312,598
    		  
    Interest income
    		    
    102,265
    		      
    69,672
    		      
    623
    		      
    172,560
    		  
    Interest expense
    		    
    (7,952,640
    )
    		    
    (481,263
    )
    		    
    (137,825
    )
    		    
    (8,571,728
    )
    Impairment (loss)/reversal
    		    
    (1,410,733
    )
    		    
    899
    		      
    (8,475
    )
    		    
    (1,418,309
    )
    Depreciation and amortization
    		    
    (17,320,753
    )
    		    
    (778,426
    )
    		    
    (203,493
    )
    		    
    (18,302,672
    )
    Net loss on disposal of non-current assets
    		    
    (693,091
    )
    		    
    (172
    )
    		    
    (14,303
    )
    		    
    (707,566
    )
    Share of profits less losses of associates and joint ventures
    		    
    973,982
    		      
    -
    		      
    73,415
    		      
    1,047,397
    		  
    Income tax expense
    		    
    (4,610,591
    )
    		    
    44,135
    		      
    57,489
    		      
    (4,508,967
    )
                                     
    For the year ended 31 December 2015 (Restated*)
    		                                
                                     
    Total revenue
    		    
    143,679,910
    		      
    10,143,793
    		      
    588,266
    		      
    154,411,969
    		  
    Inter-segment revenue
    		    
    -
    		      
    -
    		      
    (266,701
    )
    		    
    (266,701
    )
    Revenue from external customers
    		    
    143,679,910
    		      
    10,143,793
    		      
    321,565
    		      
    154,145,268
    		  
    Segment results
    		    
    27,473,279
    		      
    (313,253
    )
    		    
    (232,956
    )
    		    
    26,927,070
    		  
    Interest income
    		    
    115,378
    		      
    66,898
    		      
    501
    		      
    182,777
    		  
    Interest expense
    		    
    (9,526,290
    )
    		    
    (452,034
    )
    		    
    (163,325
    )
    		    
    (10,141,649
    )
    Impairment (loss)/reversal
    		    
    (3,112,370
    )
    		    
    1,744
    		      
    (178,131
    )
    		    
    (3,288,757
    )
    Depreciation and amortization
    		    
    (16,719,037
    )
    		    
    (772,003
    )
    		    
    (245,936
    )
    		    
    (17,736,976
    )
    Net (loss)/gain on disposal of non-current assets
    		    
    (517,820
    )
    		    
    22,450
    		      
    (1
    )
    		    
    (495,371
    )
    Share of profits less losses of associates and joint ventures
    		    
    1,247,293
    		      
    -
    		      
    18,247
    		      
    1,265,540
    		  
    Income tax expense
    		    
    (7,121,207
    )
    		    
    254,772
    		      
    14,397
    		      
    (6,852,038
    )
     
             
    (Under PRC GAAP)
    		  
       
    PRC power segment
    		    
    Singapore
    segment
    		    
    All other segments
    		    
    Total
    		  
    31 December 2017
    		                        
    Segment assets
    		    
    334,379,104
    		      
    27,817,680
    		      
    9,978,885
    		      
    372,175,669
    		  
    Including:
    		                                
    Additions to non-current assets (excluding financial assets and deferred income tax assets)
    		    
    24,447,658
    		      
    260,240
    		      
    328,061
    		      
    25,035,959
    		  
    Investments in associates
    		    
    12,577,836
    		      
    -
    		      
    2,919,860
    		      
    15,497,696
    		  
    Investments in joint ventures
    		    
    1,457,247
    		      
    -
    		      
    1,025,534
    		      
    2,482,781
    		  
    Segment liabilities
    		    
    (264,115,887
    )
    		    
    (14,000,442
    )
    		    
    (3,026,229
    )
    		    
    (281,142,558
    )
    31 December 2016 (Restated*)
    		                                
    Segment assets
    		    
    331,939,958
    		      
    28,141,718
    		      
    11,789,504
    		      
    371,871,180
    		  
    Including:
    		                                
    Additions to non-current assets (excluding financial assets and deferred income tax assets)
    		    
    27,430,205
    		      
    230,974
    		      
    854,484
    		      
    28,515,663
    		  
    Investments in associates
    		    
    12,527,711
    		      
    -
    		      
    2,880,368
    		      
    15,408,079
    		  
    Investments in joint ventures
    		    
    2,202,002
    		      
    -
    		      
    790,610
    		      
    2,992,612
    		  
    Segment liabilities
    		    
    (246,200,555
    )
    		    
    (14,027,606
    )
    		    
    (5,620,515
    )
    		    
    (265,848,676
    )
     
    A reconciliation of revenue from external customers to operating revenue is provided as follows:
     
       
    For the year ended 31 December
    		  
       
    2017
    		    
    2016(Restated*)
    		    
    2015(Restated*)
    		  
    Revenue from external customers
    		                  
    (PRC GAAP)
    		    
    152,459,444
    		      
    138,150,296
    		      
    154,145,268
    		  
    Reconciling item:
    		                        
    Impact of restatement under PRC GAAP in relation to business combination under common control*(Note 40)
    		    
    -
    		      
    (24,336,060
    )
    		    
    (25,240,395
    )
                             
    Operating revenue per IFRS consolidated statement of comprehensive income
    		    
    152,459,444
    		      
    113,814,236
    		      
    128,904,873
    		  
     
    A reconciliation of segment result to profit before income tax expense is provided as follows:
     
       
    For the year ended 31 December
    		  
       
    2017
    		    
    2016(Restated*)
    		    
    2015(Restated*)
    		  
    Segment results (PRC GAAP)
    		    
    2,141,806
    		      
    17,312,598
    		      
    26,927,070
    		  
    Reconciling items:
    		                        
    Loss related to the headquarter
    		    
    (170,210
    )
    		    
    (699,054
    )
    		    
    (327,262
    )
                             
    Investment income from China Huaneng Finance Co., Ltd. ("Huaneng Finance")
    		    
    143,794
    		      
    132,018
    		      
    135,971
    		  
    Dividend income of available-for-sale financial assets
    		    
    124,918
    		      
    105,337
    		      
    99,071
    		  
    Gains on disposal of available-for-sale financial asset
    		    
    1,479,732
    		      
    932,738
    		      
    4,282
    		  
    Impact of restatement under PRC GAAP in relation to business combination under common control*(Note 40)
    		    
    -
    		      
    (3,417,300
    )
    		    
    (3,454,005
    )
    Impact of other IFRS adjustments**
    		    
    (918,307
    )
    		    
    (553,199
    )
    		    
    (427,077
    )
                             
    Profit before income tax expense per IFRS consolidated statement of comprehensive income
    		    
    2,801,733
    		      
    13,813,138
    		      
    22,958,050
    		  
     
    Reportable segments' assets are reconciled to total assets as follows:
     
       
    As at 31 December
    		  
       
    2017
    		    
    2016(Restated*)
    		  
    Total segment assets (PRC GAAP)
    		    
    372,175,669
    		      
    371,871,180
    		  
    Reconciling items:
    		                
    Investment in Huaneng Finance
    		    
    1,336,777
    		      
    1,314,603
    		  
    Deferred income tax assets
    		    
    2,980,303
    		      
    2,447,648
    		  
    Prepaid income tax
    		    
    150,838
    		      
    204,182
    		  
    Available-for-sale financial assets
    		    
    1,654,993
    		      
    3,560,928
    		  
    Corporate assets
    		    
    395,148
    		      
    360,854
    		  
    Impact of restatement under PRC GAAP
    in relation to business combination
    under common control * (Note 40)
    		    
    -
    		      
    (70,341,769
    )
    Impact of other IFRS adjustments**
    		    
    17,895,783
    		      
    5,422,113
    		  
                     
    Total assets per IFRS consolidated statement of
    financial position
    		    
    396,589,511
    		      
    314,839,739
    		  

    Reportable segments' liabilities are reconciled to total liabilities as follows:
     
       
    As at 31 December
    		  
       
    2017
    		    
    2016(Restated*)
    		  
    Total segment liabilities (PRC GAAP)
    		    
    (281,142,558
    )
    		    
    (265,848,676
    )
    Reconciling items:
    		                
    Current income tax liabilities
    		    
    (430,703
    )
    		    
    (572,515
    )
    Deferred income tax liabilities
    		    
    (1,283,950
    )
    		    
    (1,429,859
    )
    Corporate liabilities
    		    
    (3,632,847
    )
    		    
    (4,717,617
    )
    Impact of restatement under PRC GAAP
    in relation to business combination
    under common control * (Note 40)
    		    
    -
    		      
    59,917,072
    		  
    Impact of other IFRS adjustments**
    		    
    (2,484,849
    )
    		    
    (1,407
    )
                     
    Total liabilities per IFRS consolidated statement of financial position
    		    
    (288,974,907
    )
    		    
    (212,653,002
    )
     
    Other material items:
     
       
    Reportable segment total
    		    
    Headquarters
    		    
    Investment income from Huaneng Finance
    		    
    Impact of restatement under PRC GAAP in relation to business combination under common control
    		    
    Impact of other IFRS adjustments**
    		    
    Total
    		  
    For the year ended 31 December 2017
    		                                    
    Total revenue
    		    
    152,459,444
    		      
    -
    		      
    -
    		      
    -
    		      
    -
    		      
    152,459,444
    		  
    Interest expense
    		    
    (9,622,104
    )
    		    
    (126,900
    )
    		    
    -
    		      
    -
    		      
    -
    		      
    (9,749,004
    )
    Depreciation and amortization
    		    
    (19,128,042
    )
    		    
    (38,819
    )
    		    
    -
    		      
    -
    		      
    (1,468,972
    )
    		    
    (20,635,833
    )
    Impairment loss
    		    
    (1,188,487
    )
    		    
    -
    		      
    -
    		      
    -
    		      
    1,275
    		      
    (1,187,212
    )
    Share of profits less losses of associates and joint ventures
    		    
    300,605
    		      
    -
    		      
    143,794
    		      
    -
    		      
    (19,184
    )
    		    
    425,215
    		  
    Net (loss)/gain on disposal of non-current assets
    		    
    (581,343
    )
    		    
    3,174
    		      
    -
    		      
    -
    		      
    (38,287
    )
    		    
    (616,456
    )
    Income tax expense
    		    
    (1,573,470
    )
    		    
    -
    		      
    -
    		      
    -
    		      
    355,944
    		      
    (1,217,526
    )
                                                     
    For the year ended 31 December 2016 (Restated*)
    		                                                
    Total revenue
    		    
    138,150,296
    		      
    -
    		      
    -
    		      
    (24,336,060
    )
    		    
    -
    		      
    113,814,236
    		  
    Interest expense
    		    
    (8,571,728
    )
    		    
    (131,244
    )
    		    
    -
    		      
    1,885,446
    		      
    -
    		      
    (6,817,526
    )
    Depreciation and amortization
    		    
    (18,302,672
    )
    		    
    (48,934
    )
    		    
    -
    		      
    3,533,820
    		      
    (344,929
    )
    		    
    (15,162,715
    )
    Impairment loss
    		    
    (1,418,309
    )
    		    
    -
    		      
    -
    		      
    213,351
    		      
    -
    		      
    (1,204,958
    )
    Share of profits less losses of associates and joint ventures
    		    
    1,047,397
    		      
    -
    		      
    132,018
    		      
    133,694
    		      
    (14,220
    )
    		    
    1,298,889
    		  
    Net loss on disposal of non-current assets
    		    
    (707,566
    )
    		    
    (14
    )
    		    
    -
    		      
    115,769
    		      
    1,762
    		      
    (590,049
    )
    Income tax expense
    		    
    (4,508,967
    )
    		    
    -
    		      
    -
    		      
    928,854
    		      
    114,962
    		      
    (3,465,151
    )
                                                     
    For the year ended 31 December 2015 (Restated*)
    		                                                
    Total Revenue
    		    
    154,145,268
    		      
    -
    		      
    -
    		      
    (25,240,395
    )
    		    
    -
    		      
    128,904,873
    		  
    Interest expense
    		    
    (10,141,649
    )
    		    
    (149,259
    )
    		    
    -
    		      
    2,345,174
    		      
    -
    		      
    (7,945,734
    )
    Depreciation and amortization
    		    
    (17,736,976
    )
    		    
    (60,236
    )
    		    
    -
    		      
    3,474,072
    		      
    (394,473
    )
    		    
    (14,717,613
    )
    Impairment loss
    		    
    (3,288,757
    )
    		    
    -
    		      
    -
    		      
    198,604
    		      
    -
    		      
    (3,090,153
    )
    Share of profits less losses of associates and joint ventures
    		    
    1,265,540
    		      
    -
    		      
    135,971
    		      
    180,447
    		      
    (55,983
    )
    		    
    1,525,975
    		  
    Net loss on disposal of non-current assets
    		    
    (495,371
    )
    		    
    (6
    )
    		    
    -
    		      
    90,534
    		      
    (33,478
    )
    		    
    (438,321
    )
    Income tax expense
    		    
    (6,852,038
    )
    		    
    -
    		      
    -
    		      
    1,016,588
    		      
    136,507
    		      
    (5,698,943
    )

    *
    The Company completed the acquisition of equity interests of four companies from Huaneng Group, see Note 40 for details. As the acquisition is a business combination under common control, the transaction is accounted for under merger accounting method under PRC GAAP. The assets and liabilities acquired in business combinations are measured at the carrying amounts of the acquirees in the consolidated financial statements of the ultimate controlling party on the acquisition date. The operating results for all periods presented are retrospectively restated as if the current structure and operations resulting from the acquisition had been in existence from the date when the acquirees first became under the control of the same ultimate controlling party. Therefore the relevant comparative figures in the segment information were restated under PRC GAAP while the acquisition is accounted for using acquisition method under IFRS.
     
    **
    Other GAAP adjustments above primarily represented the classification adjustments and other adjustments. Other than the classification adjustments, the differences will be gradually eliminated following subsequent depreciation and amortization of related assets or the extinguishment of liabilities.

    Geographical information (Under IFRS):

    (i)
    External revenue generated from the following countries:
     
       
    For the year ended 31 December
    		  
       
    2017
    		    
    2016
    		    
    2015
    		  
    PRC
    		    
    142,381,413
    		      
    105,055,414
    		      
    118,761,080
    		  
    Singapore
    		    
    10,078,031
    		      
    8,758,822
    		      
    10,143,793
    		  
                             
    Total
    		    
    152,459,444
    		      
    113,814,236
    		      
    128,904,873
     
    The geographical location of customers is based on the location at which the electricity was transferred, goods were delivered and services provided.

    (ii)
    Non-current assets (excluding financial assets and deferred income tax assets) are located in the following countries:
     
       
    As at 31 December
    		  
       
    2017
    		    
    2016
    		  
    PRC
    		    
    319,534,533
    		      
    249,155,921
    		  
    Singapore
    		    
    23,035,758
    		      
    23,369,766
    		  
                     
    Total
    		    
    342,570,291
    		      
    272,525,687
    		  
     
    The information on sales to major customers of the Company and its subsidiaries at amount equal to or more than 10% of external revenue is as follows:
     
    In 2017, the revenue from grid companies under common control of State Grid Corporation of China within PRC power segment in total accounted for 76% of external revenue (2016: 74%, 2015: 81%). The sales from a subsidiary of State Grid Corporation of China at amount more than 10% of external revenue is as follows:
     
       
    For the year ended 31 December
    		  
       
    2017
    		    
    2016
    		    
    2015
    		  
       
    Amount
    		    
    Proportion
    		    
    Amount
    		    
    Proportion
    		    
    Amount
    		    
    Proportion
    		  
    State Grid Shandong Electric Power Company
    		    
    28,659,891
    		      
    19
    %
    		    
    12,649,224
    		      
    11
    %
    		    
    14,855,655
    		      
    12
    %