The company announced on 11 July 2008 that the present on-grid tariff for electricity in Guangdong Province has been increased by RMB 0.026 per kWh. Shenzhen Mawan Power Co. Ltd and Shenzhen Guangshen Shajiao (B) Power Co. Ltd, both subsidiaries of the company, have raised their on-grid tariffs to range between RMB 0.45 and RMB 0.53 per kWh, which will result in an increase of RMB 170 mln for its 2008 sales revenue. However, the company claims that the tariff increase will not fully cover the cost coal prices in which there was a hike recently.

Henan Yuneng Holdings Co. Ltd (001896) also disclosed on the same day that it will raise RMB 0.02 per kWh on its present rates in Henan Province, which will increase its income and investment returns by RMB 25 mln. However, it does not show any optimism as reflected in its 1H performance adjustment disclosed on 11 July, according to which, its losses in 1H 2008 is estimated to increase to a total of approximately RMB 130 mln.

Source: Shanghai Securities News

Date: 11 Jul 2008

CN01/NW/MZ/BT/WH