CLP : Quarterly Statement 2014 (January - March) (19 May 2014)

中電控股有限公司

(incorporated in Hong Kong with limited liability)

(stock code no.: 00002)

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

The operations of CLP Holdings Limited (the Company) for the three months ended 31 March
2014 are summarised in this Quarterly Statement.

In the first quarter of 2014, local sales of electricity were 6,493GWh, representing an increase of 1.2% over the same period of last year. The Residential sector recorded a significant increase of 10.4%, mainly due to customer growth and more heating load as a result of cooler weather. This wholly offset the decrease in the Commercial and Manufacturing sectors. Sales to the Infrastructure & Public Services sector remained similar to the same period in
2013. A breakdown of the changes in local sales during the period by sector is as follows:
Increase / (Decrease) % of Total Local Sales
Residential 164GWh 10.4% 27%

Sales to the Mainland amounted to 313GWh, an increase of 30.2% over the same period of last year, largely because of early purchase made by Guangdong Power Grid Corporation (GPGC) although our committed sales to GPGC is lower for 2014.
Total electricity sales in the period, including both local sales and sales to the Mainland, increased by 2.3% to 6,806GWh.
The HKSAR Government launched a three-month public consultation on Hong Kong's future electricity fuel mix in March 2014. In the consultation paper, two options, namely additional power import from the Mainland and additional local gas generation, have been proposed for the electricity generation fuel mix towards 2023. Since the launch of the paper, many customers and stakeholders have asked CLP for more background information to help them understand the two options. We will continue to facilitate an informed discussion in order to achieve an outcome that could maintain supply reliability and the proper accountability of emissions, while preserving the long-term optionality and flexibility for the choice of fuels in the best interests of Hong Kong.

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Following the announcement of the agreements in November 2013 that (a) CLP, in collaboration with China Southern Power Grid Co., Limited (CSG), would each acquire half of the 60% interest in Castle Peak Power Company Limited (CAPCO) owned by Exxon Mobil Corporation (ExxonMobil); and (b) CLP would purchase ExxonMobil's 51% stake in Hong Kong Pumped Storage Development Company, Limited (PSDC), the purchases were completed on 12 May 2014. CAPCO is now 70% and 30% owned by CLP and CSG respectively while PSDC is 100% owned by CLP. The acquisition not only brings to an end the
50-year partnership with ExxonMobil, but also signifies the beginning of a new chapter of strategic relationship with CSG.

Australia

EnergyAustralia continued to take steps to improve operational efficiency in the first quarter of
2014. However, suppressed wholesale prices, declining energy demand and other external factors are continuing to exert considerable financial pressure.
Work continued during the period on improving performance of the Customer First (C1)
billing and customer care system. We have commenced preparation for the migration of our
1.3 million customers from the Ausgrid system onto C1, which is on schedule to take place later this year.
The New South Wales Government announced it would remove regulation of retail electricity prices from 1 July 2014, meaning retail prices will be set by the competitive market rather than by a regulator.
Difficult wholesale market conditions continue. This was clearly highlighted in January when Victorian summer demand reached the second highest level ever recorded but wholesale prices remained subdued, confirming the oversupply in the marketplace. Furthermore, the Point Henry smelter, which represents approximately 5% of electricity use in Victoria, announced that it would close its operations in August 2014. The Australian Energy Market Operator also released its revised forecasts in February, reinforcing the scenario that energy demand is expected to decline in the short-term.
In response to these market conditions, EnergyAustralia took one unit of the Wallerawang Power Station out of service in early 2014, and it has now been permanently closed. The second unit was removed from service at the start of April 2014 and placed on a three-month recall.

Mainland China

In Mainland China, we continued our focused strategy of selective investments in renewable energy, nuclear power and highly-efficient coal-fired generation, accompanied by the divestment of minority stakes in joint ventures where we have no significant control and growth prospects appear limited.
CLP's coal-fired projects on the Mainland continued to perform reliably in the first quarter of
2014, during which coal prices remained low. Fangchenggang (FCG) performed consistently well. Final project approval of FCG Phase II (2 x 660MW ultra-supercritical units) was granted by the National Development and Reform Commission on 8 May 2014. Full-scale construction will commence soon after, and commissioning is targeted for 2016.

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In line with our strategy, we signed a Share Transfer Agreement on 2 April 2014 to divest our interest in CLP Power China (Tianjin) Limited and CLP Power China (Shenmu) Limited, which hold CSEC Guohua and Shenmu power projects, respectively, for the US$ equivalent of RMB 2,250 million. Completion of the transaction is subject to internal shareholding restructuring which in turn requires corporate and regulatory approvals. We target to complete the disposal by the third quarter of 2014.
In wind, a 49.5MW project in Shandong Province achieved commercial operation in January
2014. On the project development front, we are seeking to obtain approval from relevant provincial governments for four wholly-owned projects in Guizhou, Shandong and Yunnan Provinces with a combined capacity of 247.5MW. All projects have been registered at the National Energy Administration.
Subsequent to obtaining project approval for Xicun Phase I (42MW) in Yunnan in November
2013, a project company was established at the end of 2013. This CLP wholly-owned solar project commenced construction in the first quarter of 2014, with target completion by the fourth quarter of 2014. Jiangsu Sihong Solar Project (93MW, 51% owned by CLP) completed project registration with Jiangsu Development and Reform Commission in December 2013. Construction is progressing well and is targeted to complete in the third quarter of 2014.
Guangdong Daya Bay Nuclear Power Station, which celebrates its 20th anniversary of full commercial operation in May 2014, continues to operate smoothly with no Licensing Operational Event in the quarter.

India

Jhajjar Power Limited (JPL) continued to sustain its improved performance with an overall availability of 83% in the first quarter of 2014.
Our off-takers in Haryana have agreed to seek approval from the State Government to relax the blending ratio of imported coal to up to 50%. Once approved, JPL is likely to have sufficient coal to deliver plant load factor exceeding 80% going forward.
At Paguthan, as a consequence of gas shortages and high gas price, we renegotiated with our off-takers regarding some of the terms of the Power Purchase Agreement (PPA), taking into account the expected low levels of despatch as long as gas price remains high.
In the first quarter, 133.6MW of wind projects in Gujarat, Maharashtra and Rajasthan were commissioned. In Rajasthan, the government has withdrawn its earlier order on competitive bidding for wind projects. Feed-in-tariff will continue for projects commissioned till
2015-16. This paves the way for issuing Notice to Proceed for the Tejuva project (100MW).
India Ratings and Research (Ind-Ra), the Indian subsidiary of Fitch, has assigned an "IDA AAA" rating to CLP India, citing its strong strategic and operational linkages with CLP Holdings. Ind-Ra has also upgraded the rating of CLP Wind Farms (India) Private Limited (CLPWF) long-term loan facilities to "IND AA" from "IND A+", making it the first wind business in India to receive this rating. The investment grade rating will enable CLPWF to raise cheaper financing through the debt capital markets.

Southeast Asia and Taiwan

In Taiwan, Ho-Ping Power Station, owned 20% by CLP, continued to perform well in the first quarter with major overhaul of a generating unit completed successfully.

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In Vietnam, negotiations of the PPA and build-operate-transfer contracts of the Vung Ang II
and the Vinh Tan III coal-fired development projects continued.

The Minutes of the Sixteenth AGM of the Company and the proceedings of the Meeting are available at the Corporate Governance section on the Company's website at www.clpgroup.com.

Directors today declared the first interim dividend for 2014 of HK$0.54 per share payable on
13 June 2014 to Shareholders registered as at 4 June 2014. The dividend of HK$0.54 per share
(2013: HK$0.53 per share) is payable on the existing 2,526,450,570 shares in issue.
The Register of Shareholders will be closed on 4 June 2014. To rank for this dividend, all transfers should be lodged with the Company's Registrars, Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong for registration not later than 4:30 p.m. on Tuesday, 3 June 2014.

Chairman of the Board of Directors
Hong Kong, 19 May 2014

The Directors of the Company as at the date of this quarterly statement are:

Mr Andrew Brandler and Dr Y. B. Lee

and Dr Rajiv Lall

This Statement will be despatched to Shareholders on 29 May 2014 and is also available

at the Corporate Governance or Investors sections on the Company's website at www.clpgroup.com.

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You may change your choice of language (English and/or Chinese) and means of receipt (in printed form or through our website) of the Company's future corporate communications(Note), free of charge, at any time by reasonable notice in writing (not less than 7 days) to the Company or the Company's Registrars or via e-mail (cosec@clp.com.hk or clp.ecom@computershare.com.hk).

If you prefer to receive a printed copy of this Quarterly Statement in another language (English or Chinese), please write to the Company or the Company's Registrars, Computershare Hong Kong Investor Services Limited or via e-mail to cosec@clp.com.hk or clp.ecom@computershare.com.hk. The Quarterly Statement of your choice of language in printed form will be sent to you promptly free of charge. In case you have previously chosen (or have been deemed to have consented) to receive the Company's corporate communications by electronic means, but for any reason you have difficulty in receiving or gaining access to the Quarterly Statement, we will promptly, upon your request, send the Quarterly Statement of your choice of language in printed form to you free of charge.

Note: Corporate communications refer to Interim/Annual Reports, Quarterly Statements, notices, documents or other publications of the Company (including any "corporate communication" as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited).

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