09:52     HUADIAN POWER<01071> - Announcement (1)                             

    The Stock Exchange of Hong Kong Limited takes no responsibility for       
    the contents of this announcement, makes no representation as to its      
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
    Huadian Power International Corporation Limited*                          
    (A Sino-foreign investment joint stock company limited by shares          
    incorporated in the People's Republic of China)                           
                                                                              
    (Stock Code: 1071)                                                        
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
    On 7th April, 2005, the Company, China Huadian (the Company's             
    controlling shareholder) and certain other subsidiaries of China          
    Huadian entered into the Agreement regarding the proposed                 
    establishment of Huadian Property.                                        
                                                                              
    The entering into of the Agreement constitutes a connected transaction    
    of the Company. The transaction falls within the provision under Rule     
    14A.32(1) of the Listing Rules, and therefore is only subject to the      
    reporting and announcement requirements set out in Rules 14A.45 and       
    14A.47 of the Listing Rules and is exempt from the independent            
    shareholders' approval requirements of Chapter 14A of the Listing         
    Rules.                                                                    
                                                                              
    Proposed establishment of Huadian Property                                
                                                                              
    Agreement                                                                 
                                                                              
    On 7th April, 2005, the Company, China Huadian and certain other          
    subsidiaries of China Huadian entered into the Agreement for the          
    proposed establishment of Huadian Property.                               
                                                                              
    The Company is principally engaged in the business of generation and      
    sale of electricity and heat. China Huadian and its other subsidiaries    
    being parties to the Agreement are principally engaged in businesses      
    related to power generation.                                              
                                                                              
    Huadian Property                                                          
                                                                              
    Huadian Property is in the process of being established with a            
    registered address located in Beijing, PRC. It is expected to be          
    principally engaged in the business of property development and           
    investment, and related activities. The establishment of Huadian          
    Property is subject to registration or approval being obtained from       
    relevant PRC regulatory authority(ies).                                   
                                                                              
    The registered capital of Huadian Property, as determined as a matter     
    of commercial decision, will be RMB550 million, and the Company is        
    expected to have a 30% equity interest in Huadian Property. Huadian       
    Property, once established, is expected to be an associated company       
    whose results, as currently anticipated, will be recorded in the          
    Company's future accounts.                                                
                                                                              
    (For the expected capital structure of Huadian Property, please refer to t
                                                                              
    Consideration and payment terms                                           
                                                                              
    Under the Agreement, the Company is required to contribute capital in     
    cash amounting to a sum of RMB165 million (representing 30% of Huadian    
    Property's expected registered capital) towards Huadian Property          
    within five days after its proposed company name is approved by the       
    relevant PRC regulatory authority, which approval is expected to be       
    obtained as soon as possible in accordance with relevant PRC              
    procedural and regulatory requirements. The Company's capital             
    contribution is expected to be funded out of its internal resources.      
    The Agreement does not provide for any other capital commitment or        
    loan arrangement required by the Company, and the Company is not          
    expected to provide any guarantee or indemnity in connection with the     
    establishment of Huadian Property. Huadian Property is expected to        
    arrange for banking facilities with financial institutions to satisfy     
    its future development and other investment or capital requirements if    
    required, and it is currently believed that no guarantee is to be