Huaneng Power International, Inc.: RMB 0.734 Billion Net Profit Attributed to Equity Holders of the Company in 2018

BEIJING, March 19, 2019

According to the Company's Shareholders Returns Plan for 2018-2020, the Board of the Company proposed to declare a cash dividend of RMB0.10 (inclusive of tax) for each ordinary share of the Company held by shareholders.

In 2018, the Company proactively adapted to market changes, grasping opportunities that came with the reforms of the national economy and the power market while at the same time adjusting the operational strategy in a timely manner, thereby maintaining stable, safe and clean production throughout the past year. With continuous improvement in the power structure, power generation saw an increase in both volume and price. Besides, remarkable success was attained in marketing, while the management and control for fuel costs were effective as well. In addition, outstanding performance was achieved in capital operation, thus the annual operating objectives were accomplished in a more satisfactory manner and the Company was able to maintain its leading position in the industry.

In 2018, total power generated by the Company's domestic operating power plants on consolidated basis amounted to 430.457 billion kWh, representing an increase of 9.12% year-on-year. The electricity sold amounted to 405.943 billion kWh, representing an increase of 9.30% year-on-year. The annual average utilization hours of the Company's domestic power plants reached 4,208 hours, increased 257 hours compared to the same period last year, of which the utilization hours of the coal-fired units reached 4,495 hours, increased 301 hours compared to the same period last year. In most of the areas where the Company's coal-fired power plants are located, the utilization hours of the Company was in a leading position. Total heat supplied by the Company's domestic operating power plants on consolidated basis amounted to 216 million GJ, representing a year-on-year increase of 19.58%.

Throughout 2018, the Company procured an aggregate of 196 million tons of coal. The Company continued to make accurate judgments of the coal market, optimized its procurement strategy and the structure of the regional supply and reinforced its cooperation with major coal mines. By locking in quality and affordable resources in advance, the Company effectively offset the impact of the increase in the unit procurement price of standard coal and exercised better control over the procurement costs of fuel while the market price of coal remained high throughout the year. The unit fuel cost of our domestic power plants throughout the year occurred for sales of power was RMB236.89/MWh, representing a year-on-year increase of 4.85%.

In 2018, the Company continued to lead its peers in terms of production safety, technical, economic and energy consumption indicators. The average equivalent availability ratio of coal-fired units of the Company's domestic power plants was 94.51% and its weighted average house consumption rate was 4.34%. The average yearly coal consumption rate of the Company's coal-fired units for the power generated was 288.45 grams/kWh and the average yearly coal consumption rate of the Company's coal-fired units for the power sold was 307.03 grams/kWh.

The Company progressed smoothly in construction of power supply projects. During the year, the controlled generation capacity of the newly commissioned wind units and photovoltaic units of the Company was 482 MW and 171 MW, respectively. As of December 31, 2018, the Company's controlled and equity-based generating capacities were 105,991 MW and 93,755 MW, respectively.