Interim Results

Beijing Datang Power Generation Com
15 August 2001


Beijing Datang Power Generation Company Limited

(A Sino-foreign Joint Venture Joint Stock Limited Company incorporated
in the People's Republic of China with limited liability)


2001 Interim Results Announcement

 Financial Highlights

*   Operating revenue for the six months ended 30th June 2001 amounted to
approximately Rmb3,134,598,000, representing an increase of 19.72% as compared
to the corresponding period last year.

*   Net profit was approximately Rmb728,280,000, representing an increase of
11.92% as compared to the corresponding period last year.

*   Basic earnings per share were Rmb0.141, representing an increase of
Rmb0.015 as compared to the corresponding period last year.


I.  Interim Results

The Board of Directors of Beijing Datang Power Generation Company Limited (the
''Company'') hereby announces the unaudited operating results of the Company
and its subsidiaries for the six months ended 30th June 2001 (the ''Period'')
prepared in conformity with International Accounting Standards. The operating
results have been reviewed and confirmed by the Audit Committee of the
Company.

The Company's operating revenue for the Period amounted to approximately
Rmb3,134,598,000, representing an increase of 19.72% as compared to the
corresponding period last year. Net profit was approximately Rmb728,280,000,
representing an increase of 11.92% as compared to the corresponding period
last year. Basic earnings per share were Rmb0.141, representing an increase of
Rmb0.015 as compared to the corresponding period last year.

The Board of Directors is satisfied with the above results. Please refer to
the unaudited condensed consolidated income statement (extracted from the
unaudited condensed consolidated financial statements of the Company and its
subsidiaries as at and for the six months ended 30th June 2001), together with
the corresponding figures for 2000, as set out below:



Condensed Consolidated Income Statement (Unaudited)

For the six months ended 30th June 2001

(Amounts expressed in thousands of Rmb, except per share data)


                          Note  Six months ended 30th   Six months ended 30th
                                June 2001               June 2000

Operating revenue         3                   3,134,598               2,618,382
Operating costs                             (2,039,859)             (1,652,406)

Operating profit                              1,094,739                 965,976
Financial (expenses)      4                     (8,326)                   9,483
income, net

Profit before taxation                        1,086,413                 975,459
Taxation                  5                   (363,854)               (324,741)

Profit after taxation                           722,559                 650,718
Minority interests                                5,721                       -

Net profit                                      728,280                 650,718

Earnings per share, basic 6                       0.141                   0.126
(Rmb)


Supplemental financial information

Depreciation and                              (524,685)               (446,413)
amortisation
Fuel cost                                     (915,104)               (739,346)
Dividend income                                   5,479                   6,646
Cost of materials and                          (15,380)                (13,809)
supplies




Notes

1.  Company Organisation and Principal Activities

The Company was incorporated in Beijing, the People's Republic of China (the
''PRC''), on 13th December 1994 as a joint stock limited company. Subsequent
to the listing of its H shares on The Stock Exchange of Hong Kong Limited and
the London Stock Exchange Limited on 21st March 1997, the Company was
registered as a Sino-foreign joint venture on 13th May 1998. The Company
currently owns and operates four power plants in Hebei Province and Beijing
City of the PRC. The Company's power plants are principally engaged in the
generation and sale of electric power to its substantial shareholder, North
China Power Group Company (''NCPGC'').

According to the shareholding transfer agreement dated 15th November 2000 and
supplemental agreement dated 30th April 2001, the Company agreed to acquire
60% equity interest in Shanxi Datang Shentou Power Generation Company Limited
(''Datang Shentou'') (previously named as Shanxi Shentou Huajin Electric Co.
Ltd.), for a total consideration of Rmb12 million. Datang Shentou is a limited
liability company established in the PRC to construct and operate the second
phase of Shanxi Shentou No. 2 Power Plant Project with a total investment of
approximately Rmb5.1 billion. Datang Shentou has become a subsidiary of the
Company since 30th April 2001.

On 9th May 2001, the Company entered into an Equity Interest Transfer
Agreement to acquire 80% equity interest in Shanxi Datong Pingwang Heat and
Power Company Limited (''Pingwang Heat and Power'') for a total cash
consideration of Rmb8 million. Pingwang Heat and Power is a limited liability
company established in the PRC to construct and operate the technological
renovation project of replacing small units with larger units at Datong No. 1
Power Plant with a total investment of approximately 1.7 billion. Pingwang
Heat and Power has become a subsidiary of the Company since 9th May 2001.

According to the Investment Agreement dated 7th January 2001, for the
establishment of Yunnan Datang Honghe Power Generation Company Limited
(''Honghe Power'') (previously named as Yunnan Kaiyuan Power Generation
Company Limited), the Company has invested in the 15% equity interest in
Honghe Power. According to the Supplemental Investment Agreement dated 9th May
2001, the Company agreed to increase its equity interest in Honghe Power from
15% to 70%. The investment increase has been approved by the Company's
shareholders' meeting on 14th August 2001. Honghe Power is a limited liability
company established in the PRC to construct and operate Yunnan Honghe Power
Plant (''Honghe Project'') with a total investment of approximately Rmb2.7
billion. Honghe Power has become a subsidiary of the Company since 14th August
2001.

On 28th May 2001, the Company entered into an Investment Agreement to invest
in 55% equity interest in Gansu Datang Liancheng Power Generation Company
Limited (''Liancheng Power''). The investment in Liancheng Power has been
approved by the Company's shareholders' meeting on 14th August 2001. Liancheng
Power is a limited liability company to be established in the PRC to construct
and operate Phase II Expansion Project of Gansu Liancheng Power Plant with a
total investment of approximately Rmb2.4 billion.

Particulars of the Company's subsidiaries and associated company, all of which
are limited liability companies established and operated in the PRC, as at
30th June 2001 were as follows:


Company name        Date of       Required  Paid-up  Attributable  Principal
                    establishment capital   capital  interest      activities
                                  Rmb'000   Rmb'000
Subsidiaries
Tianjin Datang      6th August,    930,790  930,790     75%       Power
Panshan Power       1997                                         generation
Generation                                                       (construction-
                                                                 in-progress)

Inner Mongolia      17th           447,824  447,824     60%      Power
Datang Tuoketuo     November,                                    generation
Power Generation    1995                                         (construction-
Co. Ltd.                                                         in-progress)

Hebei Huaze         29th July,      59,161   54,591     90%      Power
Hydropower          1998                                         generation
Development Company                                             (construction-
Limited                                                          in-progress)

Shanxi Datang       8th December,   20,000   20,000     60%      Power
Shentou Power       1998                                         generation
Generation Company                                               (pre-          
Limited                                                          construction-  
                                                                 in-progress)

Shanxi Datong       14th July,      10,000     ---     80%      Power
Pingwang Heat and   2000                                        generation
Power Company                                                   (pre-
Limited                                                         construction-   
                                                                in-progress)

Associated company
North China         7th December, 1000,000 100,000     30%      Power related
Electric Power      2000                                        technology
Research Institute                                              service
Company Limited


The principal activity of the Company and its subsidiaries is power generation.


2.  Principal Accounting Policies

The condensed consolidated financial statements are prepared in accordance
with International Accounting Standards (''IAS'') 34 ''Interim Financial
Reporting'' promulgated by the International Accounting Standards Committee
and Appendix 16 of the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited.

The condensed consolidated financial statements include those of the Company
and its subsidiaries and also incorporate the Company's interest in an
associated company.

The principal accounting policies adopted for the preparation of the condensed
consolidated financial statements as at and for the six months ended 30th June
2001 are consistent with those adopted for the preparation of the financial
statements as at and for the year ended 31st December 2000, except that
financial instruments are recognised and measured in accordance with IAS 39,
which is effective from 1st January 2001.

In accordance with IAS 39, after initial recognition of a financial asset or
financial liability at cost, the Company and its subsidiaries measure each
major class of financial instruments at either the reliable fair value or
amortised cost according to the classification of the financial instruments.
Regular way purchases and sales of financial assets are accounted for at trade
date.

The financial effects of adopting IAS 39 did not have a significant impact on
the opening balances of the condensed consolidated financial statements.


3.  Operating Revenue

Operating revenue represents the amount of tariffs billed for electricity
generated and transmitted to NCPGC. Tariff revenues are recognised upon
billing and transmission of electricity to the power grid controlled and owned
by NCPGC.


4.  Financial (expenses) income, net

                        Six months ended 30th June  Six months ended 30th June
                        2001                        2000
                                            Rmb'000                     Rmb'000

Interest income                              76,242                      81,161
Interest expenses                          (84,765)                    (71,479)
Exchange gain                                   197                       (199)
(loss)
                                            (8,326)                       9,483



5.  Taxation

The PRC income tax for the six months ended 30th June 2001 was calculated at
the rate of 33% on the estimated assessable profits for the period determined
in accordance with the PRC income tax rules and regulations.



6.  Earnings Per Share

The calculation of basic earnings per share for the six months ended 30th June
2001 was based on profit after taxation of approximately Rmb728,280,000 (2000
--- Rmb650,718,000) and on the weighted average number of 5,162,849,000 (2000
--- 5,162,849,000) shares which was calculated on the basis of 3,732,180,000
(2000 --- 3,732,180,000) Domestic Shares and 1,430,669,000 (2000 ---
1,430,669,000) H Shares.

No diluted earnings per share was presented, as there were no dilutive
potential ordinary shares outstanding for the six months ended 30th June 2000
and 2001.



7.     Reserves
     (in Rmb'000)

  Balance        Share Capital          Capital      Statutory       Statutory
                                       reserve         surplus          public
                                                       reserve    welfare fund 

  1st January,       5,162,849       3,653,421        540,081         228,675 
  2000                                                                        

  Dividends paid           ---             ---            ---             --- 

  Net profit               ---             ---            ---             --- 

  Transfer to              ---             ---         65,072          65,072 
  reserves                                                                    

  Balance,           5,162,849       3,653,421        605,153         293,747 
  30th June 2000                                                                

  Balance, 1st       5,162,849       3,653,421        808,143         235,673 
  January 2001                                                                

  Transfer                 ---             ---            ---       (229,518) 
  between                                                                     
  Reserves                                                                    

  Dividends paid           ---             ---            ---             --- 

  Net profit               ---             ---            ---             --- 

  Transfer to              ---             ---         74,988          74,988 
  reserves                                                                    

  Balance,           5,162,849       3,653,421        883,131          81,143 
  30th June 2001                                                                

 
 
  Balance    Discretionary  Dividends    Restricted     Retained        Total 
                   surplus                 reserve      earnings               
                   reserve                                                     

  1st           1,970,250     309,771          ---          ---    11,865,047 
  January, 2000                                                                 
      
  Dividends paid      ---   (309,771)          ---          ---     (309,771) 

  Net profit          ---         ---          ---      650,718       650,718 

  Transfer        520,574         ---          ---    (650,718)           --- 
  to reserves                                                                   


  Balance,      2,490,824         ---          ---          ---    12,205,994 
  30th June                                                                     
  2000                                                                        

  Balance,      2,554,205     516,285          ---          ---    12,930,576 
  1st January                                                                   
  2001                                                                        

  Transfer            ---         ---      229,518          ---           --- 
  between                                                                     
  Reserves                                                                    

  Dividends paid      ---   (516,285)          ---          ---     (516,285) 

  Net profit          ---         ---          ---      728,280       728,280 

  Transfer        599,903         ---     (21,599)    (728,280)           --- 
  to reserves                                                                   


  Balance,      3,154,108         ---      207,919          ---    13,142,571 
  30th June                                                                     
  2001                                                                        


On 6th March 2001, the Board of Directors proposed a dividend of Rmb0.10 per
share, totalling approximately Rmb516,285,000, for the year ended 31st
December 2000. The proposed dividend distribution was approved by the
shareholders in the general meeting dated 29th April 2001.

On 6th March 2000, the Board of Directors proposed a dividend of Rmb0.060 per
share, totalling approximately Rmb309,771,000, for the year ended 31st
December 1999. The proposed dividend distribution was approved by the
shareholders in the general meeting dated 28th April 2000.

In accordance with the relevant laws and regulations of the PRC and the
Company's articles of association, the Company is required to appropriate 10%
of its profit after taxation, determined based on the financial statements
prepared in accordance with the PRC accounting standards and regulations
(''PRC GAAP'') to each of the statutory surplus reserve and statutory public
welfare fund. In addition, it is the Company's current policy to transfer all
unappropriated retained earnings to the discretionary surplus reserve. For the
six months ended 30th June 2001, approximately Rmb74,988,000, Rmb74,988,000
and Rmb599,903,000 have been appropriated to the statutory surplus reserve,
statutory public welfare fund and discretionary surplus reserve, respectively.

In addition, pursuant to documents Cai Qi 2000 295, Cai Qi 2000 878 and Cai
Kuai 2001 5, the deferred housing benefits generated from the sale of staff
quarters which was approved by the government before the effective date of Cai
Qi 2000 295, i.e. 6th September 2000, should be directly deducted from
shareholders' equity starting from 2001. Accordingly, approximately
Rmb229,518,000 which represented the deferred housing benefits balance as at
1st January 2001 has been directly deducted from the statutory public welfare
fund under PRC GAAP. For IAS reporting purpose, the deferred housing benefits
are amortised over the estimated average service life of the relevant
employees. To reflect the reduction of the statutory public welfare fund, an
amount equivalent to the deferred housing benefits balance was transferred
from statutory public welfare fund to a restricted reserve specifically set up
for this purpose. Upon future amortisation of the deferred housing benefits,
an amount equivalent to the amortisation for the period will be transferred
from the restricted reserve to the discretionary surplus reserve.



II. Review and Analysis of Operations

During the Period, the Company benefited from the significant growth in
electricity demand driven by China's domestic economic growth, as the country
achieved a GDP growth of 7.9%. Net operating revenue registered a year-on-year
growth of 19.72% as compared to the corresponding period last year, while net
profit grew by 11.92%.


(1) Operating conditions

During the Period, the Company's installed capacity amounted to 4,650MW.
Electricity generation amounted to 12,447,333MWh, representing a growth of
22.28% as compared to the corresponding period last year. On-grid electricity
increased by 22.26% to 11,563,345MWh. The growth in electricity generation and
on-grid electricity was mainly attributable to the Company's expanded
installed capacity and the increase in electricity demand driven by domestic
economic growth.



(2) Cost control

During the Period, the Company continued to pursue effective management over
operating plants and proactive and stringent cost controls. A responsibility
system with economic targets to achieve was conscientiously implemented during
the Period. A strong focus was placed on enhancing equipment operational
safety standards and on articulately organizing the overhaul programs for
generating units so as to upgrade equipment operational quality. Meanwhile,
the Company continued to adopt measures in energy conservation. Quality
inspection of received coal was enhanced with strengthened efforts in
demanding compensation for sub-standard supplies. As a result of effective
management, the Company's coal consumption for electricity generation
decreased by 3g/KWh, as compared to the corresponding period last year, while
the unit fuel cost basically remained at the same level as 2000.



(3) Business expansion

During the Period, the Company continued to pursue a proactive, expansionary
strategy on the back of its technical, professional and financial strengths,
fully capitalizing on the opportunities arising from the restructuring and
realignment of the power market:


(i) The Board of Directors of the Company approved the acquisition of an 80%
equity interest in Shanxi Datong Pingwang Heat and Power Company Limited, a
company that constructs and operates two 200MW units in Shanxi Province.


(ii)    The Board of Directors of the Company approved the increase of equity
interest from 15% to 70% in Yunnan Datang Honghe Power Generation Company
Limited (previously named as Yunnan Kaiyuan Power Generation Company Limited),
a company that constructs and operates two 300MW units in Yunnan Province, and
the investment in and establishment of Gansu Datang Liancheng Power Generation
Company Limited (55% owned by the Company), a company that constructs and
operates two 300MW units in Gansu Province. The two aforesaid investments were
approved at the extraordinary general meeting of the Company convened on 14th
August 2001.


(iii)   The Company's projects under construction continued with smooth
progress:



*   Unit 8 of Zhang Jia Kou Power Plant Phase II (300MW), the first unit of
Panshan Power Plant Phase II (2 x 600MW) and the hydroelectric power units of
Fengning Hydropower Plant (2 x 10MW) are successively scheduled for commercial
operation in the second half of 2001.



*   Construction of Inner Mongolia Tuoketuo Power Plant Phase I (2 x 600MW)
has begun and civil construction work is well underway.



(4) Financial conditions



As at 30th June 2001, total assets and shareholders' equity of the Company and
its subsidiaries amounted to approximately Rmb20,708,120,000 and
Rmb13,142,571,000, respectively. The asset-liability ratio was 36.5%,
representing an increase of 1.2% compared to that of 31st December 2000; the
gearing ratio was 40.7% (total of short-term and long-term loans over equity),
representing an increase of 1.4% compared to that of 31st December 2000.

As at 30th June 2001, short-term loans of the Company and its subsidiaries
amounted to approximately Rmb489,600,000; long-term loans, including current
portion of approximately Rmb210,746,000, amounted to approximately
Rmb4,857,600,000.

As at 30th June 2001, net current assets of the Company and its subsidiaries
amounted to approximately Rmb2,151,822,000; cash and bank deposits amounted to
approximately Rmb3,818,989,000.

As at 30th June 2001, there were no trust deposit or overdue fixed deposit.


(5) Future Prospects

The Chinese government will continue to adopt proactive financial policies in
2001 to drive economic growth by increasing domestic demand and accelerating
the development of western regions. These measures will create favorable
market conditions to the Company's future development and bring more
development opportunities to the Company. The Company will fully utilize its
all strengths and continue to develop and expand its international and
domestic business operations on the back of its unique strengths.

In the second half of 2001, the Company will focus on the following:


(1) Active use of capital and faster pace in mergers and acquisitions to
expand the Company's production capacity, with a view to maximizing
shareholder value;

(2) Strengthening of safety management and the inprovement of the quality of
equipment maintenance and repair, to ensure the achievement of annual
electricity generation targets;

(3) Ongoing efforts to enhance financial management, to control and reduce
operating costs; and

(4) Focus on the management of projects under construction and the quality of
installation work so as to ensure the commissioning of Unit 8 (300MW) of Zhang
Jia Kou Power Plant Phase II, the first unit (600MW) of Panshan Power Plant
Phase II and the hydroelectric power units of Fengning Hydropower Plant (2 x
10MW) will commence smoothly as scheduled.


III.    Share Capital and Dividends

1.  Share Capital

No new shares were issued by the Company during the Period. As at 30th June
2001, the total share capital of the Company was Rmb5,162,849,000, divided
into 5,162,849,000 shares of Rmb1.00 each.



2.  Substantial Shareholders

During the Period, substantial shareholders holding more than 10% of the
shares of the Company during the Period were as follows:


Name of shareholder                   Class of  Number of   Percentage of shares
                                      shares    shares      capital (%)

North China Power Group Company       Domestic  1,828,768,200              35.43
                                      Shares

Beijing International Power           Domestic  671,792,400                13.01
Development and Investment Company    Shares

Hebei Construction Investment Company Domestic  671,792,400                13.01
                                      Shares

Tianjin Jinneng Investment Company    Domestic  559,827,000                10.84
                                      Shares



3.  Dividends

Pursuant to a resolution of the Board of Directors' meeting held on 6th March
2001 and as approved at the Annual General Meeting held on 29th April 2001,
the Company declared a dividend of Rmb0.1 for the year 2000 payable to
shareholders whose names appear on the Company's register of members on 30th
March 2001. Such dividend had been distributed before 30th June 2001.
Dividends paid to domestic shareholders were declared and paid in Rmb.
Dividends paid to foreign shareholders were declared in Rmb and paid in Hong
Kong Dollars.

The Board of Directors does not recommend any interim dividend for 2001.



4.  Shareholdings of the Directors and supervisors

At any time during the Period, none of the Directors, supervisors, their
spouses and children under 18 years old held or owned the interest of any
equity or debt securities of the Company or any of its associated corporations
(as defined in the Securities (Disclosure of Interests) Ordinance) or was
granted the right to subscribe for or purchase equity or debt securities of
the Company or any of its associated corporations.



IV. Use of Proceeds

The Company's shares were listed on The Stock Exchange of Hong Kong Limited
and the London Stock Exchange on 21st March 1997. Net proceeds were
approximately Rmb3,702 million. As at 30th June 2001, total proceeds had been
utilized as follows:


*   approximately Rmb1,253 million for investment in Phase II of Zhang Jia Kou
Power Plant;


*   approximately Rmb765 million for investment in Tianjin Datang Panshan
Power Company Limited;


*   approximately Rmb301 million for investment in Inner Mongolia Datang
Tuoketuo Power Generation Company Limited;


*   approximately Rmb1,383 million for acquisition of Unit 1 of Zhang Jia Kou
Power Plant.



V.  Purchase, Sale and Redemption of the Company's Listed Securities



During the Period, the Company had not purchased, sold or redeemed any of the
its listed securities.



VI. Significant Matters



1.  The Board of Directors of the Company was authorised to issue new shares
equivalent to not more than 20% of the Company's issued share capital at the
2000 Annual General Meeting held on 29th April 2001.



2.  At the Annual General Meeting held on 29th April 2001, the following
people were re-elected as the 4th session of the Board of Directors of the
Company: Zhai Ruoyu, Yu Hongji, Zhang Yi, Yang Hongming, Wang Xianzhou, Hu
Shengmu, Yang Jiayi, Liu Haixia, Su Tiegang, Ye Yonghui, Tong Yushang, Zhang
Wantuo, Xu Daping, Wu Zhentao. The following people were re-elected as the 4th
session of the Supervisory Committee of the Company: Zhang Jie, Shi Xiaofan,
Fu Guoqiang. The above appointments have been effective from 1st July 2001.



VII.    Code of Best Practice

During the Period, the Company had complied with the Code of Best Practice set
out in Appendix 14 of the Listing Rules of The Stock Exchange of Hong Kong
Limited.


By Order of the Board


Zhai Ruoyu

Chairman


Beijing, 14th August 2001


The interim report of the Company for the six months ended 30th June 2001
containing all the information required by paragraphs 46(1) to 46(6) of
Appendix 16 of the Listing Rules will subsequently be published on The Stock
Exchange of Hong Kong Limited's website in due course.