Datang Power Replies to Shanghai Exchange on RMB 8 Billion Private Placement

On the evening of September 14, 2026, Datang International Power Generation disclosed its reply to the Shanghai Stock Exchange's review inquiry letter concerning its RMB 8 billion private placement, addressing questions on the use of proceeds and operating conditions. The placement plans to raise no more than RMB 8 billion in total, to be used for four coal-fired power expansion projects in Fuzhou, Lvsigang, Chaozhou and Taizhou, and to supplement working capital.

On August 26, 2026, Datang Power received the Shanghai Stock Exchange's review inquiry letter regarding the application documents for its share issuance to specific targets. The company subsequently replied jointly with its sponsor CITIC Securities, Beijing Jingdu Law Firm and Tianzhi International Certified Public Accountants. The placement plans to issue shares to specific targets, raising no more than RMB 8 billion (inclusive); after deducting issuance expenses, the proceeds will be used for the Datang Fuzhou Power Plant 2×1000MW expansion project (RMB 2.3 billion), the Datang Lvsigang 2×1 million kilowatt expansion project (RMB 1.5 billion), the Datang Chaozhou Power Plant Units 5–6 project (RMB 1 billion), the Taizhou Toumen Port Power Plant project (RMB 1 billion), and for supplementing working capital and repaying special payables for state-allocated funds (RMB 2.2 billion).

In response to regulatory concerns about the projects, the reply stated that all four coal-fired power projects comply with national industrial policy and fall under the encouraged category in the Catalogue for Guiding Industry Restructuring (2024 edition), namely ultra-supercritical supporting coal-fired power projects with single-unit capacity of 600,000 kilowatts or above. The construction scale of each project has been included in the National 14th Five-Year Power Development Plan or the local "build first, retrofit later" supporting coal-fired power construction scale. The Fuzhou, Chaozhou and Taizhou projects have been included in the 15th Five-Year plans of Jiangxi, Guangdong and Zhejiang, respectively, and have completed pre-approval procedures including approval, environmental impact assessment and energy assessment. In terms of new installed capacity, the Fuzhou, Lvsigang and Chaozhou projects each add 2 million kilowatts, while the Taizhou project adds 1.32 million kilowatts. The reply also cited relevant estimates showing large power supply-demand gaps in Jiangxi, Jiangsu, Guangdong and Zhejiang, arguing that there is no major uncertainty over the absorption of electricity from the projects.

On related-party transactions, during the reporting period (2023 to January–June 2026), related-party procurement as a share of operating costs was 26.1%, 27.32%, 30.24% and 28.14%, respectively, mainly coal procurement and centralized procurement of production materials and equipment. The average difference between the unit price of related-party coal procurement and that of non-related-party procurement was within 5%. On horizontal competition, Datang Group has designated Datang Power as the final integration platform for its thermal power business, undertaking to inject thermal power assets when profitability improves and conditions are met, and issued the Commitment on Regulating Related-Party Transactions in August 2026.

Datang Power's unaudited 2026 interim report shows first-half operating revenue of approximately RMB 58.418 billion, up 2.14% year on year; total profit of approximately RMB 8.299 billion, up 13.93%; net profit attributable to shareholders of approximately RMB 5.509 billion, up 20.31%; and net profit attributable to shareholders after deducting non-recurring items of approximately RMB 5.441 billion, up 21.21%. Basic earnings per share were RMB 0.2679, up 30.3%; weighted average return on equity was 13.82%, up 1.86 percentage points. Operationally, on-grid electricity output in the first half totaled approximately 129.4693 billion kilowatt-hours, up about 4.42% year on year; the average on-grid settlement price was RMB 430.92 per megawatt-hour (tax included), down about 3.05%. At the end of the reporting period, the company had 85,911.765 megawatts of installed capacity in operation, of which clean energy accounted for 37,177.765 megawatts, or 43.27% of total installed capacity, up 0.28 percentage points from the beginning of the year.

By segment, coal-fired units (including heat) recorded total profit of RMB 2.600 billion, down 17.41% year on year; gas-fired units (including heat) RMB 421 million, up 225.64%; hydropower RMB 1.727 billion, up 42.71%; wind power RMB 1.569 billion, down 19.01%; and solar power RMB 252 million, down 37.57%.