09:58     DATANG POWER<00991> - Announcement (5)                              

    abstain from voting on the resolution set out in paragraph (b)            
    above at the 2004 AGM.                                                    
                                                                              
    REASONS FOR AND BENEFITS OF THE A SHARES ISSUE                            
                                                                              
    The Directors believe that with the proceeds raised from the              
    A Share Issue, the Company could further develop its business             
    in the development, construction and operation of power plants            
    in the PRC. The A Shares Issue will also provide the Company              
    with an alternative channel to raise further capital and will             
    enhance the shareholders base and enlarge the capital base of             
    the Company. It will also enhance the profile of the Company              
    in the PRC.                                                               
                                                                              
    EFFECTS OF THE A SHARES ISSUE ON THE COMPANY'S CAPITAL STRUCTURE          
                                                                              
    Set out below is a summary of the changes in the shareholding             
    percentage of the Company prior to and immediately upon                   
    completion of the A Shares Issue based on the assumption that             
    the entire 1 billion A Shares will be issued and the Convertible          
    Bond issued by the Company will be fully converted into                   
    215,812,558 H Shares (based on the conversion price of HK$5.558           
    per H Share) immediately upon completion of the A Shares Issue:           
                                                                              
                    Shareholding    Immediately upon                          
    Shareholding                                                              
            Prior to the    percentage (%)  completion of the                 
            Percentage (%)                                                    
    Type of shares  A Shares Issue  (approximate)   A Shares Issue            
                     (approximate)                                            
                                                                              
    1.      Unlisted domestic shares :                                        
            CDGC    1,828,768,200   35.43   2,130,472,961   (1)     33.40     
            BEIH    671,792,400     13.01   671,792,400             10.53     
            HCIC    671,792,400     13.01   671,792,400             10.53     
            TJIC    559,827,000     10.84   652,185,600     (2)     10.22     
                                                                              
    2.      Listed Shares :                                                   
            A Shares held by public -       -       605,936,639             9 
    .50                                                                       
            H Shares held by public 1,430,669,000   27.71                     
            1,646,481,558   (3)     25.81                                     
                                                                              
                                                                              
            Total   5,162,849,000   100.00  6,378,661,558           100.00    
                                                                              
                                                                              
    Notes:                                                                    
                                                                              
    (1)     Include the 301,704,761 A Shares to be issued under the           
    Private Placement Arrangements.                                           
                                                                              
    (2)     Include the 92,358,600 A Shares to be issued under the Private    
    Placement Arrangements.                                                   
                                                                              
    (3)     Include the Convertible Bond issued by the Company assumed        
    to be fully converted into 215,812,558 H Shares.                          
                                                                              
    Set out below is a summary of the changes in the shareholding             
    percentage of the Company prior to and immediately upon                   
    completion of the A Shares Issue based on the assumption that             
    the entire one billion A Shares will be issued and no conversion          
    of the Convertible Bond has taken place immediately upon                  
    completion of the A Shares Issue:                                         
                                                                              
                    Shareholding    Immediately upon                          
    Shareholding                                                              
            Prior to the    percentage (%)  completion of the                 
            Percentage (%)                                                    
    Type of shares  A Shares Issue  (approximate)   A Shares Issue            
                    (approximate)