Huaneng Power International, Inc. reported consolidated production results for the year ended December 31, 2012. For the period, the company's total power generation within China on consolidated basis amounted to 302.433 billion kWh, representing a decrease of 3.55% over 313.554 billion kWh for the same period last year; accumulated electricity sold amounted to 285.455 billion kWh, representing a decrease of 3.47% over 295.717 billion kWh for the same period last year. The decrease in power generation of the company was mainly attributable to the following reasons: Affected by the slower economic growth nationwide and the weak demand for electricity, the power generation in the areas where the company's power plants are located grew by only 1.3% in 2012.

The power generation by coal-fired generating plants decreased by 2.4% on consolidated basis over the same period last year. The average capacity growth rate of the company's coal-fire generating units in 2012 was 3.7% points lower than that in the locations where the company's power plants are situated, which affected the company's share in the power generation market. In 2012, there had been a rich supply of water to hydropower plants in the provinces and municipalities including Hunan, Jiangxi, Chongqing, Fujian, Gansu and Yunnan.

The power generation by hydropower generating plants in the six provinces and municipalities increased by 31% on consolidated basis over the same period last year. In particular, there had been a sharp increase in the hydropower generation provided to Guangdong from Three Gorges, Yunnan and Guizhou. The rise of hydropower generation narrowed the demand for coal-fired power generation in the provinces where hydropower is generated or provided, and significantly affected the company's generation output.

The long-term suspension of the coal mines in the surrounding areas of Yunnan Diandong due to safety accidents in the first quarter of 2012 resulted in tense supply of coal to the company's two power plants in Diandong, and affected electricity production of the company.