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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
April 8, 1997
Date of Report (Date of earliest event reported)
Commission File Number: 0-23148
AES CHINA GENERATING CO. LTD.
(Exact name of registrant as specified in its charter)
Bermuda
(State or other jurisdiction of incorporation or organization)
98-0152612
(IRS Employer Identification No.)
3/F(W), Golden Bridge Plaza
No. 1(A) Jianguomenwai Avenue
Beijing, 100020
Peoples Republic of China
(Address of principal executive office)
Telephone Number (8610) 6508-9619
(Registrant's telephone number, including area code)
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Item 5. Other Events.
On April 8, 1997, AES China Generating Co. Ltd. (the
"Company") announced its first quarter earnings.
Item 7. Financial Statements and Exhibits.
The following is filed as an Exhibit to this Report.
Exhibit Number 20
Description
News Release Announcing the Company's first quarter earnings.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AES China Generating Co. Ltd.
(Registrant)
BY: JEFFERY A. SAFFORD
JEFFERY A. SAFFORD
VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Dated: April 9, 1997
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
20 News Release Announcing the Company's First Quarter Earnings.
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EXHIBIT 20
NEWS RELEASE
FOR IMMEDIATE RELEASE
AES CHIGEN ANNOUNCES 1ST QUARTER
NET INCOME OF $1.1 MILLION
(April 8, 1997, Beijing) - AES China Generating Co. Ltd. [NASDAQ: CHGNF] ("AES
Chigen") announced today that net income for the three months ended February 28,
1997 was $1.1 million or earnings per share of $0.07. This compares to net
income of $0.3 million or $0.02 per share for the first quarter of last year.
Revenues for the quarter were $2.5 million compared to $0.4 million for the same
period last year.
The increases were primarily due to a full quarter of commercial operation of
AES Chigen's Wuxi Tin Hill facility and shareholder loan investment in Jiaozuo
Aluminum Power. During the quarter, AES Chigen raised approximately $174
million, net of underwriting discounts, commissions and expenses, through a
public bond offering. Interest expense, net of amounts capitalized, related to
the bonds were more than offset by interest income generated on the proceeds of
the offering awaiting investment in projects.
The first quarter saw the completion of construction of AES Chigen's Cili Misty
Mountain facility when the 10.5 MW Unit 3 passed its performance test on
February 22, 1997. The Wuxi Tin Hill joint venture also reached agreement on the
amount of payment for required minimum offtake of electricity for 1996. The
agreement included the deferral of certain amounts scheduled to be paid in 1996
and a corresponding adjustment upward of future scheduled payments of capital
return.
Shortly after the end of the first quarter on March 17, 1997, the second unit of
the Wuhu Grassy Lake 250 MW coal-fired facility passed its output performance
test. This essentially completes the construction of the facility. However, the
project has experienced delays in obtaining approvals for electricity tariff to
be paid to the joint venture. Due to this delay and uncertainty related to the
actual level of tariff to be approved, no amount for equity earnings has been
recognized in the statement of operations for the Wuhu project.
AES Chigen, an affiliate of The AES Corporation, a U.S. corporation based in
Arlington, Virginia, develops, owns and operates power generation facilities in
the People's Republic of China. It currently has investments in eight projects
in China representing a nameplate capacity of 818 megawatts.
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AES CHINA GENERATING CO. LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
February 28, 1997 February 29, 1996
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(unaudited)
REVENUES:
Electricity sales US$ 2,507 US$ 64
Construction delay fee - 360
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Total revenues 2,507 424
OPERATING COSTS AND EXPENSES:
Costs of sales 1,726 231
Development, selling, general
and administrative expenses 1,637 1,992
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Total operating costs and expenses 3,363 2,223
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OPERATING LOSS
(856) (1,799)
OTHER INCOME/(EXPENSES):
Interest income 3,215 1,978
Interest expense (1,170) -
Equity in earnings of affiliates 107 126
Amalgamation cost (143) -
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INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 1,153 305
Income taxes 86 -
Minority interest (56) (11)
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NET INCOME US$ 1,123 US$ 316
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NET INCOME PER SHARE US$ 0.07 US$ 0.02
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AES CHINA GENERATING CO. LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par values and share amounts)
As of As of
February 28, 1997 November 30, 1996
------------------ -----------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents US$ 145,738 US$ 56,200
Investments - held-to-maturity 43,572 8,995
Investments - available-for-sale 12,993 -
Accounts receivable from related parties 3,264 6,809
Interest receivable 737 286
Inventory 1,057 765
Prepaid expenses and other current assets 653 874
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Total current assets 208,014 73,929
Property, Plant and Equipment:
Electric generating facilities 71,474 64,185
Equipment, furniture and leasehold improvements 2,863 2,646
Accumulated depreciation and amortization (4,016) (3,143)
Construction in progress 135,487 98,912
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Total property, plant and equipment, net 205,808 162,600
Other Assets:
Deferred costs, net 5,935 407
Project development costs 3,907 3,352
Investments in and advances to affiliates 42,421 33,202
Note receivable 6,631 6,626
Deposits and other assets 575 582
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Total other assets 59,469 44,169
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TOTAL US$ 473,291 US$280,698
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AES CHINA GENERATING CO. LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par values and share amounts)
As of As of
February 28, 1997 November 30, 1996
----------------- -----------------
(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable - The AES Corporation US$ 600 US$ 1,185
Accounts payable 2,953 2,199
Accrued liabilities 5,179 2,618
Accrued liabilities for construction 3,449 4,259
Loans from minority shareholders 1,955 1,365
- current portion
Bank loans 2,387 2,861
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Total current liabilities 16,523 14,487
Long-Term Liabilities:
Note payable, net 179,831 -
Bank loan 7,000 -
Deferred income taxes 472 387
Loans from minority shareholders 34,998 34,933
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Total long-term liabilities 222,301 35,320
Minority Interest 42,703 40,536
Shareholder's Equity:
Class A Common Stock - par value
$0.01 per share,(50,000,000 shares
authorized; issued and outstanding;
1997 - 8,158,095; 1996 - 8,134,100) 82 81
Class B Common Stock - par value $0.01 per
share,(50,000,000 authorized; 7,500,000
shares issued and outstanding) 75 75
Additional paid-in capital 184,203 183,980
Retained earnings 7,030 5,907
Cumulative translation adjustment 374 312
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Total shareholders' equity 191,764 190,355
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TOTAL US$ 473,291 US$ 280,698
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