Huaneng Power International, Inc. (Huaneng) develops, constructs, operates, manages and owns large thermal power plants in China. The company makes use of modern technology and equipment, as well as financial resources available domestically and internationally. Huaneng is the largest independent public power producers in China. At the end of September 2007, the company wholly-owned 17 power plants, had controlling interests in 13 operating power companies, and minority interests in 5 operating power companies. These power plants are located all over the country, especially in China's economically vibrant east coast. The company provides electricity to customers in China through the power grids in various cities and regions. Huaneng currently owns including recent acquisitions from its parent, Huaneng Group a total generation capacity of 32,575 megawatts (MW). The company's assets, as of September 30, 2007, totaled $14.7 billion.
Huaneng's controlling shareholder is Huaneng International Power Development Corporation (HIPDC). This company is engaged in developing power plants using foreign capital and is a subsidiary of Huaneng Group, HIPDC's controlling shareholder. Huaneng Group invests in industries related to power generation and is one of the five power generation companies created or restructured to take over all the power generation assets originally owned by the State Power Corporation of China. Huaneng has leveraged these relationships with HIPDC and Huaneng Group, which gave Huaneng preferential rights with respect to acquisitions and developments.
Huaneng's two-pronged strategy making acquisitions and constructing power plants is expected to drive top-line growth in the near term. The company's revenue grew at a rate of about 14% in the first three quarters of 2007. Huaneng intends to continue its focus on management control, cost reduction, and efficiency enhancement to ensure steady and sustainable growth. Its strategy for the future is to expand its presence to non-coastal provinces, diversify fuel mix to include hydropower and gas-fired power plants, seek more off-conference contracts for coal, and to continue leveraging its relationship with HIPDC and Huaneng Group to facilitate its acquisitions and developments. At all of its power plants, Huaneng is working to increase efficiency and utilization rates.