Huaneng International Announcement Dalian Wafangdian Wind Farm Project Approved By Dalian Development And Reform Commission

In the evening of November 17th,

The planned capacity of the first phase of the wafangfang wind farm project in Dalian is 48 MW and the total investment is estimated at 495 million yuan.

Huaneng International said that 20% of the total investment, or 99 million yuan, was invested by the company's own capital and the rest of the funds were settled by bank loans.

This means Huaneng International will increase nearly 400 million yuan of bank loans.

2010 three quarterly data show that the company's third quarter financial expenses increased by 34% over the same period, exceeding market expectations, and also directly caused the company's performance worse.

In the third quarter, Huaneng International realized a net profit of 1 billion 100 million yuan, down nearly 5 from the same period last year. At the end of the three quarter, the debt ratio of the company reached 77%.

Since the price of coal has been rising all the way since 2010, the company's capital expenditure has also maintained a high level. According to the Oriental Securities Research Report, the company's capital expenditure in the first half of the year was 9 billion 351 million yuan. With the increase of investment in clean energy generation projects in 12th Five-Year, capital expenditure in the next three years will increase year by year. The 2010-2012 years are 21 billion 300 million yuan, 28 billion 700 million yuan and 34 billion 600 million yuan respectively, and the company's own cash flow situation is worrying.

At the beginning of 2010, the company announced that it was planning to issue 1 billion 200 million A shares and 400 million H shares separately, and the net proceeds would not exceed 8 billion 600 million yuan.

According to the November 1st announcement, the company's application for additional issuance has been conditionally approved by the SFC.

The A stock raising fund will be used in 8 projects such as Gansu dry mouth second wind farm and repayment of loans.

CITIC Securities Research Report said that if the company's issue was fully subscribed, it would reduce the debt ratio of the company by about 4 percentage points.