ADD to BW1091, SHANDONG-HUANENG.

BEIJING--(BUSINESS WIRE)--Sept. 24, 1998--

ADD to BW1091, Shandong Huaneng Power Development Co. Ltd Announces 1998 Interim Results: -0-

               Shangdong Huaneng Power Development Co. Ltd.
                   CONSOLIDATED STATEMENTS OF INCOME
              For the Six Months Ended June 30, 1998 and 1997
      (Amounts in thousands, except number of shares and per share data)
                                            For the              For the
                                        Six Months Ended  Six Months Ended
                                        June 30, 1998           June 30, 1997
                                      Rmb             US$        Rmb
                                    (Unaudited)  (Unaudited) (unaudited)

Operating revenues                  1,149,076           138,779 1,230,916
Operating expenses:
Operations:
Fuel used in electric
 generation                            370,796            44,783   432,869
Salaries and Wages                     38,298             4,625    35,607

Maintenance
 and material supplies                     64,305             7,766    61,932
Service fees                             11,692             1,412    12,930
Depreciation and amortization            209,382            25,288   185,591
Others                                     94,889            11,460    77,958
Total expenses incurred
 in operations                            789,362            95,334   806,887
Financial expenses
 (Income):
 Interest charges                     48,179             5,819    30,624
 Interest income                   (141,813)           (17,127) (110,068)
 Exchange losses                       --              --       1,944
Total financial income                    (93,634)           (11,308)  (77,500)
Taxes:
 Income Tax                            147,655            17,833   162,040
 Other regulatory taxes              24,919             3,010    19,163
 Total taxes                            172,574            20,843   181,203
Total operating expenses            868,302           104,869   910,590
Net income                            280,774            33,910   320,326
Earnings per ordinary share             0.0652            0.0079     0.744
Earnings per equivalent ADS             3.2612            0.3939    3.7206
Weighted average number of
 ordinary shares
 outstanding                     4,304,716,000 4,304,716,000 4,304,716,000
Weight average number of
 equivalent ADSs
 outstanding                         86,094,320        86,094,320 86,904,320
 (one ADS represents
 50 ordinary shares)
Translation of amounts from Renminbi (Rmb) into United States
dollars (U.S.$) for the convenience of the reader has been made at the
noon buying rate in New York City for cable transfers in foreign
currencies certified for customs purposes by the Federal Reserve Bank
of New York on Sept. 9, 1998 of U.S. $1.00 = Rmb 8.2799. No
representation is made that the Renminbi amounts could have been, or
could be converted into United States dollars at that rate on
Sept. 9, 1998 or any other certain rate.

            SHANDONG HUANENG POWER DEVELOPMENT CO. LTD.
                   CONSOLIDATED BALANCE SHEETS
                 As of June 30, 1998 and Dec. 31, 1997
  (Amounts in thousands, except number of shares and per share data)

                                   June 30, 1998        Dec. 31, 1997
                                 Rmb              U.S.$             Rmb
                             (unaudited)  (unaudited)         (audited)
ASSETS
Property, plant
 and equipment, net             4,714,514            569,393          4,659,960
Long-term investments               331,859             40,080            331,859
Deferred assets and
 other assets                       166,646             20,127            173,369
Current assets:
  Cash and cash equivalents    728,402             87,972          1,132,865
  Restricted cash deposits     174,778             21,109            165,596
  Short-term investments     2,110,940            254,948          1,596,237
  Trade receivables from
   releated companies               221,242             26,720            247,612
  Other receivables and other
   current assets               165,095             19,939            138,575
  Fuel and supplies                94,118             11,367            113,813
  Total current assets             3,494,575            422,055          3,394,698
     Total assets             8,707,594          1,051,655          8,559,886

CAPITALIZATION AND LIABILITIES

CAPITALIZATION
Shareholders' equity:
  Common stock,
   3,136,016,000 Class A
   Ordinary Shares of par
   value Rmb 1 each             3,136,016            378,750          3,136,016
  Common stock,
   1,168,700,000 Class N
   Ordinary Shares of par
   value Rmb 1 each             1,168,700            141,149          1,168,700
  Additional paid-in
   capital                     1,516,378            183,140          1,516,378
  Capital reserve                35,631              4,303             35,631
  Statutory reserves               988,616            119,400            935,145
  Retained earnings               735,024             88,772            679,909
    Total shareholders'
     equity                     7,580,365            915,514          7,471,779
Long-term bank loans               120,000             14,493            135,470
Long-term loans from
 founding shareholders               126,925             15,329            124,699
     Total capitalization    7,827,290            945,336          7,731,948

Current Liabilities
  Short-term bank loans        161,000             19,445            221,000
  Current portion of
   long-term bank loans        135,470             16,361             26,015
  Trade payables                28,413              3,432             22,592
  Other payables and
   accrued liabilities               151,135             18,253            140,138
  Taxes payable                254,602             30,749            296,972
  Dividends payable to
   shareholders                 47,444              5,730               --
  Dividends payable to
   founding shareholders        17,155              2,072             33,450
  Due to related companies        39,425              4,762             42,111
     Total current
      liabilities               834,644            100,804            782,278

OTHER LIABILITIES                45,660              5,515             45,660
     Total capitalization
      and liabilities             8,707,594          1,051,655          8,559,886

Translation of amounts from Renminbi (Rmb) into United States
dollars (U.S.$) for the convenience of the reader has been made at the
noon buying rate in New York City for cable transfers in foreign
currencies certified for customs purposes by the Federal Reserve Bank
of New York on Sept. 9, 1998 of U.S. $1.00 = Rmb 8.2799. No
representation is made that the Renminbi amounts could have been, or
could be, converted into United States dollars at that rate on
Sept. 9, 1998 or any other certain rate.
               SHANDONG HUANENG POWER DEVELOPMENT CO. LTD.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
             For the Six Months Ended June 30, 1998 and 1997
                        (Amounts in thousands)
                                      For the Six Months Ended
                                   June 30, 1998      June 30, 1997
                                 Rmb            U.S.$           Rmb
                              (unaudited) (unaudited)  (unaudited)
Cash flows from
 operating activities:
  Net income                       280,774            33,910         320,326
  Adjustments to
   reconcile net income
   to net cash provided by
   operating activities:
    Depreciation and
     amortization               209,382            25,288         185,591
   (Increase) decrease in
    assets:
     Restricted cash deposits        (9,182)     (1,109)           --
     Trade receeivables from
      related companies         26,370             3,185         107,689
     Other receivables and
      other current assets     (26,520)     (3,203)          32,095
      Fuel and supplies         19,695             2,379         (28,316)
      Deferred assets and
       other assets                 3,873               468          (2,944)
   Increase (decrease) in
    liabilities:
      Trade payables                 5,821               703           5,414
      Other payables and
       accrued liabilities        10,997             1,328          12,296
      Taxes payable               (42,370)     (5,117)         (87,872)
      Due to related companies        (2,686)       (324)          22,369
      Other liabilities           --               --           2,792
        Net cash provided by
         operating activities  476,154            57,508         569,440
Cash flows from investing
 activities:
  Net increase in
   short-term investments     (514,703)    (62,163)        (476,964)
  Net increase in long-term
   investments                         --              --         (44,714)
  Additions to property, plant
   and equipment              (261,086)    (31,533)        (330,419)
      Net cash used in
       investing activities:  (775,789)    (93,696)        (852,097)
Cash flows from financing
 activities:
  Drawdown of short-term
   bank loans                        96,000            11,594         186,000
  Repayment of short-term
   bank loans                      (156,000)    (18,841)         (83,400)
  Drawdown of long-term
   bank loans                       120,000            14,493            --
  Repayment of long-term
   bank loans                       (26,015)     (3,142)            --
Drawdown of long-term loans
 from founding shareholders         2,226               269            --
  Dividends paid to
   shareholders               (124,744)    (15,066)            --
  Dividends paid to founding
   shareholders                (16,295)     (1,968)        (137,956)
      Net cash used in
       financing activities   (104,828)    (12,661)         (35,356)
Net decrease in cash and
 cash equivalents              (404,463)    (48,849)        (318,013)
Cash and cash equivalents, at
 beginning of period             1,132,865           136,821     2,237,064
Cash and cash equivalents,
at end of period               728,402            87,972     1,919,051
Translation of amounts from Renminbi (Rmb) into United States
dollars (U.S.$) for the convenience of the reader has been made at the
noon buying rate in New York City for cable transfers in foreign
currencies certified for customs purposes by the Federal Reserve Bank
of New York on Sept. 9, 1998 of U.S. $1.00 = Rmb 8.2799. No
representation is made that the Renminbi amounts could have been, or
could be, converted into United States dollars at that rate on
Sept. 9, 1998 or any other certain rate.
              SHANDONG HUANENG POWER DEVELOPMENT CO. LTD.
      CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
         For the Year Ended Dec. 31, 1997 and for the Six Months
                         Ended June 30, 1998
                        (Amounts in thousands)

                                   Additional
                       Ordinary     Paid-in  Capital Statutory Retained
                       Shares            Capital  Reserve  Reserve  Earnings
                   Number    Rmb      Rmb        Rmb         Rmb         Rmb
Balance as of
 Dec. 31, 1996        4,304,716 4,304,716 1,516,378  35,631 807,341 381,346
Net income for
 the year ended
 Dec. 31, 1997            --             --         --        --         --    684,649
Dividends(a)            --             --         --        --         --   (258,282)
Transfer to
 statutory
 reserves            --             --         --        --    127,804 (127,804)
Balance as of
 Dec. 31, 1997        4,304,716 4,304,716 1,516,378  35,631 935,145  679,909
Net income for
 the six months
 ended
 June 30, 1998            --             --         --        --         --    280,774
Dividends(b)            --             --         --        --         --   (172,188)
Transfer to
 statutory
 reserves            --             --         --        --     53,471  (53,471)
Balance as of
 June 30, 1998        4,304,716 4,304,716 1,516,378  35,631 988,616 735,024
(a)  Final dividend for the six months ended Dec. 31, 1996 was Rmb
0.04 per share for all outstanding shares at Dec. 31, 1996.  Interim
dividend for the six months ended June 30, 1997 was Rmb 0.02 per share
for all outstanding shares at June 30, 1997.
(b)  Final dividend for the six months ended Dec. 31, 1997 was Rmb
0.04 per share for all outstanding shares at Dec. 31, 1997.