Datang Intl H Regulatory News (DAT)

Hong Kong Exchanges and Clearing Limited and The Stock Exchange ofHong Kong Limited take no responsibility for the contents of this announcement,make no representation as to its accuracy or completeness and expressly disclaim anyliability whatsoever for any loss howsoever arising from or in reliance upon the wholeor any part of the contents of this announcement. DATANG INTERNATIONAL POWER GENERATION CO., LTD. (a sino-foreign joint stock limited company incorporated in the People's Republic of China) (Stock Code: 00991) ANNOUNCEMENT INDEPENDENT FINANCIAL ADVISER'S ADVICE ON TERM OF THE FRANCHISING CONTRACT BACKGROUND Reference is made to the announcement of Datang International Power Generation Co., Ltd.(the "Company") dated 22 January 2015 (the "Announcement") in relation to, among otherthings, the Franchising Contract. Unless otherwise defined herein, capitalised terms usedin this announcement shall have the same meanings as those defined in the Announcement. As set out in the Announcement, since the Denitrification Assets are the supporting andancillary facilities of the coal-fired power generating units, the franchise period ofthe Denitrification Assets is the same as the operating periods of their correspondingpower generating facilities, which is expected to exceed three years. Pursuant to Rule 14A.52 of the Listing Rules, the period for the agreement of continuingconnected transaction shall not exceed three years except in special circumstances wherethe nature of the transaction requires a longer period. In such case, the Company mustappoint an independent financial adviser to explain why the agreement requires a longerperiod and to confirm that it is normal business practice for agreements of this typeto be of such duration. The Board, accordingly, has appointed Quam Capital Limited("Quam Capital") as the independent financial adviser to provide advice in relation tothe franchise period of the Denitrification Assets under the Franchising Contract. OPINION OF INDEPENDENT FINANCIAL ADVISER Quam Capital opines that as the Denitrification Assets are the supporting and ancillaryfacilities of the coal-fired power generating units, and the denitrification facilitieswill operate with the coal-fired power generating units to achieve flue gasdenitrification, it is necessary to operate the denitrification facilities in orderto ensure flue gas emission from the coal-fired power generating units to meetthe requirements on environmental protection. As such, it is reasonable that the franchiseperiod of the Denitrification Assets under the Franchising Contract is the same as theoperating periods of their corresponding power generating facilities. In addition, Quam Capital has also reviewed an announcement of a listed company on theStock Exchange other than the Company which is engaged in the investment, development,operation and management of power plants and coal mines in the PRC, and noted that it hasalso entered into contracts with its connected person in relation to provision of, amongother things, services to ensure satisfaction of various national emission standards by theengaged party. The duration of such services is also more than three years. Having considered the principal factors and reasons described above, Quam Capital considersthat the duration of the Franchising Contract is justifiable and it is normal business practicefor contract of this type. By Order of the Board Zhou Gang Secretary to the Board Beijing, the PRC, 29 January 2015 As at the date of this announcement, the Directors of the Company are: Chen Jinhang, Hu Shengmu, Wu Jing, Liang Yongpan, Zhou Gang, Cao Xin,Cai Shuwen, Liu Haixia, Guan Tiangang, Yang Wenchun,Dong Heyi*, Ye Yansheng*, Zhao Jie*, Jiang Guohua*, Feng Genfu* * Independent non-executive Directors