HUANENG POWER INTERNATIONAL INC | CIK:0000929058 | 3

  • Filed: 4/12/2018
  • Entity registrant name: HUANENG POWER INTERNATIONAL INC (CIK: 0000929058)
  • Generator: Unknown
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/929058/000114420418020280/0001144204-18-020280-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/929058/000114420418020280/hnp-20171231.xml
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    • ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory

    7
    Property, plant and equipment
     
       
    Dam
    		    
    Port facilities
    		    
    Buildings
    		    
    Electric utility plant in service
    		    
    Transport-ation facilities
    		    
    Others
    		    
    CIP
    		    
    Total
    		  
    As at 1 January 2016
    		                                                
    Cost
    		    
    1,856,144
    		      
    3,860,009
    		      
    8,306,471
    		      
    327,827,738
    		      
    980,290
    		      
    5,809,400
    		      
    23,851,697
    		      
    372,491,749
    		  
    Accumulated depreciation
    		    
    (153,325
    )
    		    
    (436,215
    )
    		    
    (2,508,772
    )
    		    
    (138,852,591
    )
    		    
    (371,226
    )
    		    
    (3,366,838
    )
    		    
    -
    		      
    (145,688,967
    )
    Accumulated impairment loss
    		    
    (268,981
    )
    		    
    -
    		      
    (68,931
    )
    		    
    (5,968,962
    )
    		    
    -
    		      
    (81,328
    )
    		    
    (741,510
    )
    		    
    (7,129,712
    )
                                                                     
    Net book value
    		    
    1,433,838
    		      
    3,423,794
    		      
    5,728,768
    		      
    183,006,185
    		      
    609,064
    		      
    2,361,234
    		      
    23,110,187
    		      
    219,673,070
    		  
                                                                     
    Year ended 31 December 2016
    		                                                                
    Beginning of the year
    		    
    1,433,838
    		      
    3,423,794
    		      
    5,728,768
    		      
    183,006,185
    		      
    609,064
    		      
    2,361,234
    		      
    23,110,187
    		      
    219,673,070
    		  
    Reclassification
    		    
    -
    		      
    1,771
    		      
    (492,558
    )
    		    
    495,841
    		      
    759
    		      
    (5,813
    )
    		    
    -
    		      
    -
    		  
    Business combination
    		    
    -
    		      
    -
    		      
    8,098
    		      
    303,854
    		      
    -
    		      
    2,977
    		      
    4,576
    		      
    319,505
    		  
    Additions
    		    
    -
    		      
    1,770
    		      
    127
    		      
    418,812
    		      
    -
    		      
    122,519
    		      
    18,839,102
    		      
    19,382,330
    		  
    Transfer from CIP
    		    
    20,170
    		      
    246,712
    		      
    1,319,019
    		      
    12,576,736
    		      
    20,033
    		      
    296,648
    		      
    (14,479,318
    )
    		    
    -
    		  
    Disposals/write-off
    		    
    -
    		      
    -
    		      
    (68,945
    )
    		    
    (495,251
    )
    		    
    (26,477
    )
    		    
    (27,055
    )
    		    
    (193,357
    )
    		    
    (811,085
    )
    Depreciation charge
    		    
    (32,987
    )
    		    
    (113,810
    )
    		    
    (255,882
    )
    		    
    (14,004,881
    )
    		    
    (48,720
    )
    		    
    (387,884
    )
    		    
    -
    		      
    (14,844,164
    )
    Impairment charge
    		    
    (41,423
    )
    		    
    -
    		      
    (2,303
    )
    		    
    (1,005,367
    )
    		    
    -
    		      
    (6,399
    )
    		    
    (8,243
    )
    		    
    (1,063,735
    )
    Currency translation differences
    		    
    -
    		      
    -
    		      
    -
    		      
    404,948
    		      
    -
    		      
    782
    		      
    158
    		      
    405,888
    		  
                                                                     
    End of the year
    		    
    1,379,598
    		      
    3,560,237
    		      
    6,236,324
    		      
    181,700,877
    		      
    554,659
    		      
    2,357,009
    		      
    27,273,105
    		      
    223,061,809
    		  
                                                                     
    As at 31 December 2016
    		                                                                
    Cost
    		    
    1,876,314
    		      
    4,116,914
    		      
    9,056,858
    		      
    341,195,395
    		      
    875,630
    		      
    6,041,783
    		      
    28,022,858
    		      
    391,185,752
    		  
    Accumulated depreciation
    		    
    (186,312
    )
    		    
    (556,677
    )
    		    
    (2,749,300
    )
    		    
    (152,408,524
    )
    		    
    (320,971
    )
    		    
    (3,596,546
    )
    		    
    -
    		      
    (159,818,330
    )
    Accumulated impairment loss
    		    
    (310,404
    )
    		    
    -
    		      
    (71,234
    )
    		    
    (7,085,994
    )
    		    
    -
    		      
    (88,228
    )
    		    
    (749,753
    )
    		    
    (8,305,613
    )
                                                                     
    Net book value
    		    
    1,379,598
    		      
    3,560,237
    		      
    6,236,324
    		      
    181,700,877
    		      
    554,659
    		      
    2,357,009
    		      
    27,273,105
    		      
    223,061,809
    		  
                                                                     
    Year ended 31 December 2017
    		                                                                
    Beginning of the year
    		    
    1,379,598
    		      
    3,560,237
    		      
    6,236,324
    		      
    181,700,877
    		      
    554,659
    		      
    2,357,009
    		      
    27,273,105
    		      
    223,061,809
    		  
    Reclassification
    		    
    49,386
    		      
    (404
    )
    		    
    52,047
    		      
    (157,759
    )
    		    
    (4,357
    )
    		    
    61,087
    		      
    -
    		      
    -
    		  
    Business combination (Note 40)
    		    
    279,169
    		      
    -
    		      
    1,944,531
    		      
    58,379,270
    		      
    17,243
    		      
    443,052
    		      
    2,717,544
    		      
    63,780,809
    		  
    Additions
    		    
    -
    		      
    -
    		      
    184
    		      
    840,991
    		      
    -
    		      
    88,160
    		      
    21,225,980
    		      
    22,155,315
    		  
    Transfer from CIP
    		    
    15,355
    		      
    114,688
    		      
    342,285
    		      
    20,283,508
    		      
    288,554
    		      
    145,705
    		      
    (21,190,095
    )
    		    
    -
    		  
    Disposals/write-off
    		    
    -
    		      
    (14,731
    )
    		    
    (30,837
    )
    		    
    (1,252,829
    )
    		    
    (3,907
    )
    		    
    (28,562
    )
    		    
    -
    		      
    (1,330,866
    )
    Disposal of subsidiaries
    		    
    -
    		      
    (632,709
    )
    		    
    (101,169
    )
    		    
    (114,542
    )
    		    
    -
    		      
    (153,096
    )
    		    
    (1,242,210
    )
    		    
    (2,243,726
    )
    Depreciation charge
    		    
    (40,200
    )
    		    
    (111,529
    )
    		    
    (339,630
    )
    		    
    (19,155,852
    )
    		    
    (59,022
    )
    		    
    (494,932
    )
    		    
    -
    		      
    (20,201,165
    )
    Impairment charge
    		    
    (45,619
    )
    		    
    -
    		      
    (1,651
    )
    		    
    (754,753
    )
    		    
    -
    		      
    (2,503
    )
    		    
    (241,669
    )
    		    
    (1,046,195
    )
    Currency translation differences
    		    
    -
    		      
    -
    		      
    -
    		      
    151,249
    		      
    -
    		      
    263
    		      
    600
    		      
    152,112
    		  
                                                                     
    End of the year
    		    
    1,637,689
    		      
    2,915,552
    		      
    8,102,084
    		      
    239,920,160
    		      
    793,170
    		      
    2,416,183
    		      
    28,543,255
    		      
    284,328,093
    		  
                                                                     
    As at 31 December 2017
    		                                                                
    Cost
    		    
    2,220,224
    		      
    3,358,811
    		      
    11,173,669
    		      
    418,360,698
    		      
    1,155,392
    		      
    5,972,688
    		      
    29,534,677
    		      
    471,776,159
    		  
    Accumulated depreciation
    		    
    (226,512
    )
    		    
    (443,259
    )
    		    
    (3,019,198
    )
    		    
    (170,525,898
    )
    		    
    (362,222
    )
    		    
    (3,523,292
    )
    		    
    -
    		      
    (178,100,381
    )
    Accumulated impairment loss
    		    
    (356,023
    )
    		    
    -
    		      
    (52,387
    )
    		    
    (7,914,640
    )
    		    
    -
    		      
    (33,213
    )
    		    
    (991,422
    )
    		    
    (9,347,685
    )
                                                                     
    Net book value
    		    
    1,637,689
    		      
    2,915,552
    		      
    8,102,084
    		      
    239,920,160
    		      
    793,170
    		      
    2,416,183
    		      
    28,543,255
    		      
    284,328,093
    		  
     
    Interest capitalization

    Interest expense of approximately RMB476 million (2016: RMB450 million) arising on borrowings for the construction of property, plant and equipment was capitalized during the year and was included in 'Additions' in property, plant and equipment. The weighted average capitalization rate was approximately 4.54% (2016: 4.52%) per annum.

    Impairment

    In 2017, impairment losses for certain property, plant and equipment and land use rights of approximately RMB1,046 million and RMB109 million have been recognized, respectively. Factors leading to the impairment include lower than expected utilization hours of a subsidiary due to long idle hours of its power generating units and the coal-fire projects in progress was aborted; lower than expected operating results of three subsidiaries in 2017 due to oversupply and fierce competition within the electricity market in the provinces, as well as low profitability of a hydropower plant, a coal-fire project in progress of a subsidiary was aborted as a result of relevant regulation. Discount rates of 9.50%, 9.98%, 9.89%, 14.74% and 9.14% were adopted in the value in use model in the determination of the recoverable amounts for the four coal-fired power plants and the hydropower plant respectively. In addition, as a result of the low demand of coal-fired power in local market, management estimated the possibility of further development of a coal-fired power project was remote, therefore the project under construction with a carrying value of RMB242 million was fully impaired in 2017.

    In 2016, impairment losses for certain property, plant and equipment and land use rights of approximately RMB1,064 million and RMB52 million have been recognized, respectively. Factors leading to the impairment of operating projects primarily included lower utilization hours and tariff of two coal-fired power plants as a result of over supply of electricity in two provinces, as well as low utilization hours of a hydropower plant as a result of low level of water inflow. Discount rates of 8.06%, 8.97% and 8.12% were adopted in the value in use model in the determination of the recoverable amounts for the two coal-fired power plants and the hydropower plant respectively.

    Property, plant and equipment held under finance leases

    As at 31 December 2017, certain property, plant and equipment with original cost of RMB3,312 million (2016: RMB2,075 million) were held under finance leases, which mainly included power generation assets, ships and pipeline assets.

    Security

    As at 31 December 2017, certain property, plant and equipment were secured to a bank as collateral against a long-term loan (Note 24).

    Buildings without ownership certificate

    At 31 December 2017, the Company and its subsidiaries were in the process of applying for the ownership certificate for certain buildings (buildings for power generation process were included in electric utility plant in service) with an aggregate net book value of RMB10,800 million (2016: RMB7,871 million). The management are of the opinion that the Company and its subsidiaries are entitled to lawfully and validly occupy and use of the above mentioned buildings.