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:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory

    8
    Investments in associates and joint ventures
     
       
    2017
    		    
    2016
    		  
    Beginning of the year
    		    
    19,632,113
    		      
    19,745,192
    		  
    Capital injections in associates and joint ventures
    		    
    301,916
    		      
    276,118
    		  
    Business combination (Note 40(a))
    		    
    1,021,566
    		      
    -
    		  
    Transfer from available-for-sale
    		    
    91,800
    		      
    -
    		  
    Transfer to subsidiaries
    		    
    (736,725
    )
    		    
    -
    		  
    Share of net profit less loss
    		    
    425,215
    		      
    1,298,889
    		  
    Share of other comprehensive income/(loss)
    		    
    121,208
    		      
    (180,572
    )
    Currency translation differences
    		    
    (142,226
    )
    		    
    -
    		  
    Dividends
    		    
    (835,279
    )
    		    
    (1,507,514
    )
    Elimination of unrealized profits on transactions with equity-method investees
    		    
    (361,965
    )
    		    
    -
    		  
                     
    End of the year
    		    
    19,517,623
    		      
    19,632,113
    		  
     
    As at 31 December 2017, investments in associates and joint ventures of the Company and its subsidiaries are unlisted except for Shenzhen Energy Corporation Limited ("SECL") which is listed on the Shenzhen Stock Exchange. The following list contains only the particulars of material associates and joint ventures:
     
    Name
    		  
    Country of incorporation
    		  
    Registered capital
    		  
    Business nature and scope of operation
    		  
    Percentage of equity interest held
    Direct
    		  
    Indirect1
                         
    Associates:
    		                    
    SECL*
    		  
    PRC
    		  
    RMB2,642,994,398
    		  
    Energy and investment in related industries
    		  
    25.02%
    		  
    -
                         
    Hebei Hanfeng Power Generation Limited Liability Company ("Hanfeng Power")
    		  
    PRC
    		  
    RMB1,975,000,000
    		  
    Power generation
    		  
    40%
    		  
    -
                         
    Huaneng Finance
    		  
    PRC
    		  
    RMB5,000,000,000
    		  
    Provision for financial service including fund deposit services, lending, finance lease arrangements, notes discounting and entrusted loans and investment arrangement within Huaneng Group
    		  
    20%
    		  
    -
                         
    Huaneng Sichuan Hydropower Co., Ltd. ("Sichuan Hydropower")
    		  
    PRC
    		  
    RMB1,469,800,000
    		  
    Development, investment, construction, operation and management of hydropower
    		  
    49%
    		  
    -
                         
    China Huaneng Group Fuel Co., Ltd. ("Huaneng Group Fuel Company") **
    		  
    PRC
    		  
    RMB3,000,000,000
    		  
    Wholesale of coal, import and export of coal
    		  
    50%
    		  
    -
                         
    Hainan Nuclear Power Limited Liability Company("Hainan Nuclear")
    		  
    PRC
    		  
    RMB4,831,460,000
    		  
    Construction and operation of nuclear power plants; production and sales of electricity and related products
    		  
    30%
    		  
    -
                         
    Joint ventures:
    		                    
    Shanghai Time Shipping Co., Ltd. ("Shanghai Time Shipping")
    		  
    PRC
    		  
    RMB1,200,000,000
    		  
    International and domestic sea transportation
    		  
    50%
    		  
    -
                         
    Jiangsu Nantong Power Generation Co., Ltd.("Jiangsu Nantong Power")
    		  
    PRC
    		  
    RMB1,596,000,000
    		  
    Operation and Management of power generation plants and transportation related projects
    		  
    -
    		  
    35%
                         
    Huaneng Shandong Ruyi (Hongkong) Energy Co., Ltd ("Ruyi (Hongkong) Energy")***
    		  
    Hong Kong
    		  
    10,000 Shares
    		  
    Investment in electricity and other related energy projects
    		  
    -
    		  
    40%
                         
    Shandong Luyi Power International Limited Company ("Luyi Power")***
    		  
    PRC
    		  
    RMB35,000,000
    		  
    Contracting overseas projects and international bidding projects, mechanical and electrical equipment installation engineering and electric power engineering
    		  
    -
    		  
    40%

    1
    The indirect percentage of equity interest held represents the effective ownership interest of the Company and its subsidiaries.

    *
    As at 31 December 2017, the fair value of the Company's shares in SECL was RMB6,010 million (2016: RMB6,813 million).

    **
    In accordance with the articles of the association of the investee, the Company could only exercise significant influence on the investee and therefore accounts for the investment under the equity method.

    ***
    Ruyi (Hongkong) Energy and Luyi Power were established for Pakistan Sahiwal Project, which are jointly controlled by Huaneng Shandong Power Generation Co., Ltd. and Shandong Ruyi Technology Group Co., Ltd.

    All the above associates and joint ventures are accounted for under the equity method in the consolidated financial statements.

    Summarized financial information of the material associates, adjusted for any differences in accounting policies and acquisition adjustments, and reconciliation to the carrying amounts in the consolidated financial statements, are disclosed below:
     
       
    Sichuan Hydropower
    		    
    SECL
    		    
    Huaneng Finance
    		    
    Hanfeng Power
    		    
    Huaneng Group
    Fuel Company
    		    
    Hainan Nuclear
    		  
       
    2017
    		    
    2016
    		    
    2017
    		    
    2016
    		    
    2017
    		    
    2016
    		    
    2017
    		    
    2016
    		    
    2017
    		    
    2016
    		    
    2017
    		    
    2016
    		  
    Gross amounts of the associates'
    		                                                                        
    Current assets
    		    
    1,113,579
    		      
    1,245,157
    		      
    16,444,934
    		      
    14,021,440
    		      
    25,535,504
    		      
    13,919,342
    		      
    650,055
    		      
    806,432
    		      
    4,327,146
    		      
    4,642,797
    		      
    2,497,765
    		      
    2,608,909
    		  
    Non-current assets
    		    
    14,590,921
    		      
    14,676,021
    		      
    56,079,321
    		      
    46,584,060
    		      
    20,786,497
    		      
    18,055,386
    		      
    2,246,412
    		      
    2,616,639
    		      
    4,102,426
    		      
    4,269,520
    		      
    22,490,989
    		      
    23,939,921
    		  
    Current liabilities
    		    
    (2,477,362
    )
    		    
    (2,410,462
    )
    		    
    (20,447,190
    )
    		    
    (16,564,310
    )
    		    
    (39,588,213
    )
    		    
    (25,344,346
    )
    		    
    (795,815
    )
    		    
    (1,045,876
    )
    		    
    (1,778,075
    )
    		    
    (1,939,210
    )
    		    
    (3,409,360
    )
    		    
    (3,330,581
    )
    Non-current liabilities
    		    
    (8,661,852
    )
    		    
    (8,901,599
    )
    		    
    (28,491,540
    )
    		    
    (19,395,060
    )
    		    
    (49,904
    )
    		    
    (57,368
    )
    		    
    (27,443
    )
    		    
    (37,103
    )
    		    
    (3,119,462
    )
    		    
    (3,432,326
    )
    		    
    (17,252,794
    )
    		    
    (18,356,288
    )
    Equity
    		    
    4,565,286
    		      
    4,609,117
    		      
    23,585,525
    		      
    24,646,130
    		      
    6,683,884
    		      
    6,573,014
    		      
    2,073,209
    		      
    2,340,092
    		      
    3,532,035
    		      
    3,540,781
    		      
    4,326,600
    		      
    4,861,961
    		  
    -Equity attributable to shareholders
    		    
    3,400,953
    		      
    3,449,824
    		      
    22,285,077
    		      
    21,610,140
    		      
    6,683,884
    		      
    6,573,014
    		      
    2,073,209
    		      
    2,340,092
    		      
    3,400,344
    		      
    3,378,952
    		      
    4,326,600
    		      
    4,861,961
    		  
    -Non-controlling interests
    		    
    1,164,333
    		      
    1,159,293
    		      
    1,300,448
    		      
    3,035,990
    		      
    -
    		      
    -
    		      
    -
    		      
    -
    		      
    131,691
    		      
    161,829
    		      
    -
    		      
    -
    		  
                                                                                                     
    Revenue
    		    
    2,247,781
    		      
    2,053,327
    		      
    13,908,949
    		      
    11,427,830
    		      
    1,393,211
    		      
    1,093,637
    		      
    2,073,209
    		      
    2,192,445
    		      
    17,166,036
    		      
    14,356,915
    		      
    2,504,379
    		      
    1,897,190
    		  
    Profit/(loss) from continuing operations attributable to shareholders
    		    
    222,403
    		      
    173,220
    		      
    747,657
    		      
    1,362,028
    		      
    718,970
    		      
    660,089
    		      
    52,361
    		      
    290,470
    		      
    48,876
    		      
    102,363
    		      
    (535,361
    )
    		    
    18,618
    		  
    Other comprehensive (loss)/income attributable to shareholders
    		    
    -
    		      
    -
    		      
    521,965
    		      
    (638,680
    )
    		    
    (28,099
    )
    		    
    (125,840
    )
    		    
    -
    		      
    -
    		      
    (6,654
    )
    		    
    8,723
    		      
    -
    		      
    -
    		  
    Total comprehensive income/(loss) attributable to shareholders
    		    
    222,403
    		      
    173,220
    		      
    1,269,622
    		      
    723,348
    		      
    690,871
    		      
    534,249
    		      
    52,361
    		      
    290,470
    		      
    42,222
    		      
    111,086
    		      
    (535,361
    )
    		    
    18,618
    		  
    Dividend received from the associates
    		    
    132,923
    		      
    145,392
    		      
    148,761
    		      
    198,348
    		      
    116,000
    		      
    122,000
    		      
    127,698
    		      
    174,366
    		      
    10,000
    		      
    10,000
    		      
    -
    		      
    -
    		  
                                                                                                     
    Reconciled to the interests in the associates
    		                                                                                                
    Gross amounts of net assets attributable to shareholders of the associate
    		    
    3,400,953
    		      
    3,449,824
    		      
    22,285,077
    		      
    21,610,140
    		      
    6,683,884
    		      
    6,573,014
    		      
    2,073,209
    		      
    2,340,092
    		      
    3,400,344
    		      
    3,378,952
    		      
    4,326,600
    		      
    4,861,961
    		  
    The Company's effective interest
    		    
    49
    %
    		    
    49
    %
    		    
    25.02
    %
    		    
    25.02
    %
    		    
    20
    %
    		    
    20
    %
    		    
    40
    %
    		    
    40
    %
    		    
    50
    %
    		    
    50
    %
    		    
    30
    %
    		    
    30
    %
    The Company's share of net assets attributable to shareholders of the associate
    		    
    1,666,467
    		      
    1,690,414
    		      
    5,574,612
    		      
    5,405,776
    		      
    1,336,777
    		      
    1,314,603
    		      
    829,284
    		      
    936,037
    		      
    1,700,172
    		      
    1,689,476
    		      
    1,297,980
    		      
    1,458,588
    		  
    Impact of adjustments
    		    
    207,586
    		      
    207,586
    		      
    1,161,810
    		      
    1,161,810
    		      
    -
    		      
    -
    		      
    293,082
    		      
    293,082
    		      
    16,521
    		      
    16,521
    		      
    14,076
    		      
    14,076
    		  
    Carrying amount in the consolidated financial statements
    		    
    1,874,053
    		      
    1,898,000
    		      
    6,736,422
    		      
    6,567,586
    		      
    1,336,777
    		      
    1,314,603
    		      
    1,122,366
    		      
    1,229,119
    		      
    1,716,693
    		      
    1,705,997
    		      
    1,312,056
    		      
    1,472,664
    		  

    Summarized financial information of material joint ventures adjusted for any differences in accounting policies and acquisition adjustment, and reconciliation to the carrying amount in the consolidated financial statements, are disclosed below:
     
       
    Shanghai Time Shipping
    		    
    Jiangsu Nantong Power
    		    
    Pakistan Sahiwal Project Related Investment
    		  
       
    2017
    		    
    2016
    		    
    2017
    		    
    2016
    		    
    2017
    		  
    Gross amounts of joint ventures'
    		                              
    Current assets
    		    
    665,410
    		      
    883,120
    		      
    656,720
    		      
    815,359
    		      
    3,069,065
    		  
    Non-current assets
    		    
    4,663,530
    		      
    5,335,409
    		      
    5,739,860
    		      
    6,075,100
    		      
    9,775,693
    		  
    Current liabilities
    		    
    (3,316,709
    )
    		    
    (3,177,881
    )
    		    
    (2,939,371
    )
    		    
    (2,600,258
    )
    		    
    (1,955,211
    )
    Non-current liabilities
    		    
    (617,437
    )
    		    
    (1,506,076
    )
    		    
    (1,374,656
    )
    		    
    (1,931,219
    )
    		    
    (8,738,121
    )
    Equity
    		    
    1,394,794
    		      
    1,534,572
    		      
    2,082,553
    		      
    2,358,982
    		      
    2,151,426
    		  
                                             
    Included in the above assets and liabilities:
    		                                        
    Cash and cash equivalents
    		    
    96,528
    		      
    203,018
    		      
    362,214
    		      
    96,501
    		      
    618,105
    		  
    Current financial liabilities (excluding trade and other payables and provisions)
    		    
    (2,987,937
    )
    		    
    (2,681,857
    )
    		    
    (2,404,331
    )
    		    
    (2,270,601
    )
    		    
    (1,482,269
    )
    Non-current financial liabilities (excluding trade and other payables and provisions)
    		    
    (617,437
    )
    		    
    (1,506,076
    )
    		    
    (1,352,000
    )
    		    
    (1,931,219
    )
    		    
    (8,738,121
    )
                                             
    Revenue
    		    
    3,532,065
    		      
    3,561,091
    		      
    3,451,983
    		      
    3,354,545
    		      
    2,321,510
    		  
    (Loss)/profit from continuing operations
    		    
    (139,780
    )
    		    
    1,212
    		      
    271,364
    		      
    608,660
    		      
    (72,227
    )
    Other comprehensive loss     -       -       -       -       (284,452 )
    Total comprehensive (loss)/income
    		    
    (139,780
    )
    		    
    1,212
    		      
    271,364
    		      
    608,660
    		      
    (356,679
    )
                                             
    Dividend received in cash from the joint ventures
    		    
    -
    		      
    275,000
    		      
    724,453
    		      
    -
    		      
    -
    		  
    Included in the above profit:
    		                                        
    Depreciation and amortization
    		    
    317,133
    		      
    340,826
    		      
    396,500
    		      
    393,221
    		      
    63,122
    		  
    Interest income
    		    
    1,406
    		      
    985
    		      
    1,810
    		      
    2,313
    		      
    10
    		  
    Interest expense
    		    
    157,851
    		      
    149,748
    		      
    130,028
    		      
    128,224
    		      
    104,467
    		  
    Income tax expense
    		    
    (45,741
    )
    		    
    500
    		      
    92,294
    		      
    194,915
    		      
    224,146
    		  
                                             
    Reconciled to the interest in the joint venture:
    		                                        
    Gross amounts of net assets
    		    
    1,394,794
    		      
    1,534,572
    		      
    2,082,553
    		      
    2,358,982
    		      
    2,151,426
    		  
    The Company and its subsidiaries' effective interest
    		    
    50
    %
    		    
    50
    %
    		    
    50
    %
    		    
    50
    %
    		    
    50
    %
    The Company and its subsidiaries' share of net assets
    		    
    697,397
    		      
    767,286
    		      
    1,041,277
    		      
    1,179,491
    		      
    1,075,713
    		  
    Impact of adjustments
    		    
    18,324
    		      
    18,324
    		      
    -
    		      
    -
    		      
    (361,965
    )
    Carrying amount in the consolidated financial statements
    		    
    715,721
    		      
    785,610
    		      
    1,041,277
    		      
    1,179,491
    		      
    713,748
    		  
     
    Aggregate information of associates and joint ventures that are not individually material:
     
       
    2017
    		    
    2016
    		  
    Aggregate carrying amount of individually immaterial associates and joint ventures in the consolidated financial statements
    		    
    2,948,510
    		      
    3,479,043
    		  
                     
    Aggregate amounts of the Company and its subsidiaries' share of those associates and joint ventures
    Profit from continuing operations
    		    
    70,965
    		      
    263,392
    		  
    Total comprehensive income
    		    
    70,965
    		      
    263,392
    		  
     
    As at 31 December 2017, the Company's share of losses of an associate and a joint venture exceeded its interest in the associate and the joint venture and the unrecognized further losses amounted to RMB185 million (2016: RMB163 million).