Securities code: Huaneng Power International Inc(600011) securities abbreviation: Huaneng Power International Inc(600011) Announcement No.: 2022015
Huaneng Power International Inc(600011)
Announcement on the provision for asset impairment
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Huaneng Power International Inc(600011) (“the company” or ” Huaneng Power International Inc(600011) “) held the 21st Meeting of the 10th board of directors on March 22, 2022, deliberated and adopted the proposal on the company’s provision for major asset impairment. In order to objectively reflect the company’s asset status and operating results and ensure the authenticity and reliability of accounting information, the company takes necessary impairment test and evaluation for assets with signs of impairment in accordance with the relevant provisions of the accounting standards for Business Enterprises No. 8 – asset impairment, and plans to withdraw impairment reserves for assets with signs of impairment based on the principle of prudence. The main information is as follows: I. provision for impairment
(I) impairment of consolidation layer
Under China’s standards, the company’s consolidation layer needs to calculate and list asset impairment losses and credit impairment losses totaling 193 million yuan in 2021. It mainly includes that according to the calculation of the asset group of Huangtai 8 unit, it is proposed to withdraw 55 million yuan of asset impairment loss for 30% property rights of Huangtai 8 unit held by Huaneng Shandong Power Generation Co., Ltd. (“Shandong company”) and 110 million yuan of credit impairment loss for long-term receivables of Huangtai 8 unit.
Under the international standards, affected by the difference in asset value formed by the difference in acquisition standards under the same control, the company’s consolidated level has recorded a total of 195 million yuan of asset impairment loss and credit impairment loss.
(II) impairment of parent company
Under Chinese standards, the parent company level of the company needs to calculate and list asset impairment losses and credit impairment losses totaling 1.5 billion yuan in 2021. The impairment loss of zhanneng Thermal Power Co., Ltd. (“zhanneng Thermal Power Co., Ltd.”) due to the official liquidation of zhanneng Thermal Power Co., Ltd. (“zhanneng Thermal Power Co., Ltd.”) in 2021 was mainly affected by the company’s internal liquidation of zhanneng Thermal Power Co., Ltd. (“zhanneng thermal Power Co., Ltd.”). There is no difference in the impairment criteria of the parent company.
2、 Impact of provision for impairment on the company’s financial position
The above impairment provisions reduce the total consolidated profit of the company by 193 million yuan under Chinese standards and 195 million yuan under international standards.
3、 Review procedures for the provision for impairment this time
The company held the 21st Meeting of the 10th board of directors on March 22, 2022, deliberated and adopted the proposal on the company’s provision for major asset impairment. The board of directors of the company believes that the provision for asset impairment this time is based on the principle of prudence, fully based and fairly reflects the asset status of the company, and agrees to the provision for asset impairment this time. The company held the 8th meeting of the 10th board of supervisors on March 22, 2022, and deliberated and adopted the proposal on the company’s provision for major asset impairment. The board of supervisors of the company believes that the provision for asset impairment this time is based on the principle of prudence, fully based and fairly reflects the asset status of the company, and agrees to the provision for asset impairment this time. It is hereby announced.
Huaneng Power International Inc(600011) board of directors March 23, 2022
