March 17, 2014

See Disclosure Appendix of this report for important Disclosures and Analyst Certifications

March 17, 2014

See Disclosure Appendix of this report for important Disclosures and Analyst Certifications

Asian Coal, Power and Renewables

Michael W. Parker • Senior Analyst • +852-2918-5747 • michael.parker@bernstein.com

Flora Chang • Research Associate • +852-2918-5737 • flora.chang@bernstein.com

Less, Less, Less: The Beginning of the End of Coal

Prepared for

Institute for Energy Economics and Financial Analysis

and

New York University Institute for Policy Integrity

Asian Coal, Power and Renewables 2 2

Asian Coal, Power and Renewables

Asian Coal, Power and Renewables Contact Information

Michael Parker is Vice President and Senior Research Analyst

covering the Asian Coal, Power and Renewables sectors for

Sanford C. Bernstein in Hong Kong.

Prior to joining Bernstein, Michael was a Director of Corporate

Development for renewable energy company, First Solar in

New York where his responsibilities included managing

corporate transactions and market forecasting.

Michael previously worked for PricewaterhouseCoopers in San

Francisco and in Wellington advising on various infrastructure

projects and investments in both the telecom and power sector

in the US and Asia-Pacific.

Michael holds an MBA from New York University and a law

degree and Bachelor of Commerce from the University of

Otago, New Zealand. He is a barrister and solicitor of the High

Court of New Zealand.

Michael Parker, Senior Analyst

Tel: +852 2918 5747

Fax: +852 2918 5757

E-mail: michael.parker@bernstein.com

Flora Chang, Senior Research Associate

Tel: +852 2918 5737

Fax: +852 2918 5757

E-mail: flora.chang@bernstein.com

Asian Coal, Power and Renewables 3 3

File:

\\ac03hkg0202\deptss\HKG_SSRES\Asi

an Utilities\ Market Data\_PPT

Exhibits\Trade Flow

Asian Coal – The Appalachian Butterfly Effect

Source: Wiki commons, SX Coal, Public Press, EIA, BREE, RBCT, Bernstein analysis and estimates

Major Seaborne Coal Exporters Supplying Asia – 2012

Chinese coal prices didn't fall 25% over the course of 2012 because of the US and South Africa combining to

export an incremental 11M tons of coal to a 4B ton Chinese coal market. Coal prices fell primarily because

Chinese coal production and transportation capacity growth outstripped Chinese demand growth.

Australia

Russia

Mongolia

China

~288MT

South Africa

Indonesia

N. Korea

Vietnam

USA

Canada

8MT

20MT

9MT

22MT

12MT

59MT

118MT14MT

17MT

Asian Coal, Power and Renewables 4 4

Chinese Power – Turn on the Lights, the Party’s Over

China's "power multiplier" over the business cycle since 2007 is ~1x GDP growth. The power multiplier (power

production growth divided by real GDP growth or the amount of electricity required by produce a unit of GDP) was

1.4x from 2003 to 2006, but falling.

Source: NBS, CEIC, Bernstein estimates and analysis

China: Power Production Share

December 2012 – November 2013 China: Power Intensity 1998-2013

Source : NBS, CEIC, Bernstein estimates and analysis

Thermal80.7%

Hydro14.7%

Nuclear2.0%

Wind2.3%

Others0.2%

0.3

4

0.8

2

1.1

1

1.1

1 1.2

9

1.5

5

1.5

2

1.1

9

1.1

5

1.0

2

0.6

8

0.6

8

1.2

7

1.2

9

0.7

2

1.0

8

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Ch

ina P

ow

er M

ultip

lier

2008-2013Average

= 0.95x

Asian Coal, Power and Renewables 5 5

File:

\\ac03hkg0202\deptss\HKG_SSRES\

Asian Utilities\Market Data\China

Coal\China Coal Price Central.xlsx

Tab: SX Coal

Chinese Coal – No Diamonds, Plenty of Rough

Qinhuangdao 5,500kcal/kg Spot Coal Price – 2007-2014current

Source: SX Coal, Bernstein analysis

Coal prices have declined to RMB530/ton. Coal prices have fallen ~37% since November 2011 when the price

touched RMB855/ton. We are in the longest sustained period of price falling since at least 2006 and there

are few signs that this trend is likely to change any time soon.

426 427

467

714

599

748

821

699

588

530

0

100

200

300

400

500

600

700

800

900

2005 2006 2007 2008 2009 2010 2011 2012 2013 Current

QH

D C

oal P

rices (R

MB

/ton)

Asian Coal, Power and Renewables 6 6

File:

\\ac03hkg0202\deptss\HKG_SSRES\

China Monthly Macro\Exhibits\7 Energy -

Coal.xlsx

Tab: FAI and Rail

Chinese Coal – No Diamonds, Plenty of Rough

No insurmountable economies of scale. There are some economies of scale, but – in part as a result of the 2008

Shanxi industry consolidation - there are also multiple scaled operators.

No lack of investment. Investment in the coal mining fixed assets in 2011 was up 30% Y/Y. And in 2010, coal

mining fixed asset investment increased 24.8%. But in 2012, it was up just 8%, while in 2013, it decreased 0.4%.

Source: CEIC, NBS, Bernstein analysis

Chinese Coal Mining Fixed Asset Investment 2006 –2013

117 145196

261321

428465

471

3135

45

41

56

6263 56

29.4%

22.0%

33.6%

25.3%24.8%

29.9%

7.9%

-0.4%

-20%

-10%

0%

10%

20%

30%

40%

0

100

200

300

400

500

600

700

800

2006 2007 2008 2009 2010 2011 2012 2013

Y/Y

Gro

wth

(%

)

Fix

ed

Asset I

nve

stm

ent -

Co

al M

inin

g,

RM

B B

Jan-Nov FAI Dec FAI Y/Y Growth

529

490

377

302

241

181147

526

Asian Coal, Power and Renewables 7 7

File:

\\ac03hkg0202\deptss\HKG_SSRES\

Asian Utilities\Models\Industry

Model\Global Power Multiplier Model.xlsx

Tab: Summary

Chinese Coal – Ditching the Bridge & Tunnel Crowd

10-year Power Multipliers – Selection of 25 Developed and Developing Nations

Source: World Bank, IEA, Bernstein analysis

Looking at a sample of 25 countries in terms of power intensity over the last ten years, at least five trends are clear.

2.0

7

2.0

1

1.4

4

1.4

1

1.3

9

1.3

9

1.3

2

1.2

6

1.2

6

1.2

4

1.0

5

1.0

3

1.0

4

1.0

2

0.9

5

0.9

1

0.8

8

0.6

8

0.6

4

0.5

5

0.5

0

0.5

0

0.3

5

(0.0

5)

(0.0

9)

(0.5)

-

0.5

1.0

1.5

2.0

2.5

Ban

gla

desh

Vie

tnam

Nig

eri

a

Italy

Eg

yp

t

Sp

ain

Turk

ey

Th

ailand

Ch

ina

Ind

onesi

a

Mexic

o

Fra

nce

Pakis

tan

S K

ore

a

Bra

zil

Ph

illip

ines

Ind

ia

Jap

an

Germ

an

y

US

S A

fric

a

Austr

alia

Russia

Can

ad

a

UK

Po

wer M

ultip

lier (1

0-y

ear)

Asian Coal, Power and Renewables 8 8

File:

\\ac03hkg0202\deptss\HKG_SSRES\Asi

an Utilities\Market Data\4 Industial

Production.xlsx

Tab: Industrial Production

File:

\\ac03hkg0202\deptss\HKG_SSRES\Asi

an Utilities\Models\Industry

Models\Global Steel Demand Model.xlsx

Tab: Coal consumption

Chinese Coal – No Diamonds, Plenty of Rough

Coal-fired power stations account for roughly half of coal consumption in China. A slowdown in coal

consumption by the power sector means that other coal-consuming sectors will need to step up their demand to

satisfy new supply

We cannot identify any other important coal consuming industries that are filling this gap.

Chinese Coal Consumption by End Market,

2011 US Coal Consumption by end Market, 2012

Source: EIA, Bernstein Analysis and estimates Source: NBS, CEIC, Bernstein Analysis, Media Reports

Power plants

93%

Coking 2%

Other5%

Agriculture0.5% Mining

7.6%

Steel18.7%

Chemicals4.7%

Cement7.3%

Other Manu-

facturing6.7%

Utilities50.1%

Other1.7%

Resi-dential

2.7%

Asian Coal, Power and Renewables 9 9

Source: Wikimedia Commons, Chinese Government State Council, Media reports, Bernstein analysis

Chinese Coal – No Diamonds, Plenty of Rough

2017 Clean Air target by province announced by the Chinese Government State Council

Shanxi

Inner Mongolia

Shandong

Yangtze River Delta

Pearl River Delta

BEIJING – by 2017

• PM10: Reduce 10% from 2012 level

• PM2.5: Reduce 25% from 2012 level,

specifically < 60ug/m3• Coal consumption: cap at 10mt or a 13mt

reduction; % of coal as energy reduce to

<10%

• Retire 1,200 high polluting companies

• % of renewable energy increase to 15%•Negative growth in coal consumption

Hebei

Jiangsu

Zhejiang

Shanghai

Guangdong

YANGTZE RIVER DELTA (Jiangsu,

Zhejiang and Shanghai) - by 2017

• PM10: Reduce by 10% from 2012 level

• PM2.5: Reduce by 20% from 2012 level

• Negative growth in coal consumption

TIANJIN – by 2017

•PM10: Reduce 10% from 2012 level

• PM2.5: Reduce 25% from 2012 level

• Coal consumption: Reduce10mt• Steel capacity capped at 20mt, cement

capped at 5mt and coal-fired installed

capacity capped at 14GW

• % of renewable energy increase to 15%

•Negative growth in coal consumption

HEBEI – by 2017

• PM10: Reduce10% from 2012 level

• PM2.5: Reduce 25% from 2012 level

• A 8.75mtpa reduction of coal consumption; 5.86mtpa reduction of steel capacity and

14.47mtpa reduction of iron capacity by 2015

• From 2015-2017, reduce 40.34mtpa,

67.26mtpa and 66.72mtpa of coal

consumption, steel capacity and iron capacity• Retire all <100MW and start retiring

<200MW non co-gen coal-fired capacity

• Wind power capacity increase to 11GW

• % of renewable energy increase to 15%

• Negative growth in coal consumption

PEARL RIVER DELTA – by 2017

• PM10: Reduce by 10% from 2012 level

• PM2.5: Reduce by 15% from 2012 level

• Coal consumption: cap at 160mt by 2015• Negative growth in coal consumption

SHANDONG – by 2017

• PM10: Reduce by 10% from 2012 level

• PM2.5: Reduce by 20% from 2012 level

• Retire 21mt of iron capacity and cap steel capacity at 50mt by 2015; and cap coke

capacity at 40mt by 2017

• Coal consumption: reduce 20mt

• % of renewable energy increase to 10%

INNER MONGOLIA – by 2017

• PM10: Reduce by 10% from 2012 level

• PM2.5: Reduce by 10% from 2012 level

SHANXI – by 2017

• PM10: Reduce by 10% from 2012 level

• PM2.5: Reduce by 20% from 2012 level

• Retire 6.7mt of steel capacity and 18mt of coking capacity.

• % of renewable energy increase to 10%

TANGSHAN, HEBEI – by 2017

A 25.6mtpa reduction in coal consumption;

40mtpa reduction in steel capacity and

28mtpa reduction in iron capacity.

HANDAN, HEBEI – by 2017

A 16.7mtpa reduction of coal consumption,

12.04mtpa reduction of steel capacity and

16.14mtpa reduction of iron capacity.

SHIJIAZHUANG, HEBEI – by 2017

A 15mtpa reduction of coal consumption,

4.82mtpa reduction of steel capacity and

3.74mtpa reduction of iron capacity.

Beijing

Tianjin

Asian Coal, Power and Renewables 10 10

File:

\\ac03hkg0202\deptss\HKG_SSRES\Chi

na Red Book\Red Book - Coal and

Power.xlsx

Tab: Depletion

File:

\\ac03hkg0202\deptss\HKG_SSRES\

Asian Utilities\Market Data\China

Power\2020 China Installed Capacity.xls

Tab: 2

Chinese Coal – No Diamonds, Plenty of Rough

China Installed Capacity by Fuel Source, 2012

and 2020E

Power Generation Shift by Fuel Source, 2012 – 2020E

Source: CIEC, Bernstein estimates Source: NBS, CEIC, Bernstein estimates and analysis

We believe that coal-fired power generation capacity will fall from ~800GW of installed capacity today to 650GW

by the end of the decade as inefficient, small, old power stations are decommissioned. Hydro will increase from

~250GW to 350GW. Gas will go from ~40GW to 150GW. Nuclear will increase from ~13GW to 75GW. Solar and

wind will be 200GW and 250GW by the end of the decade, respectively.

777

249

61 4313 8

650

350

250

150

75

205

0

200

400

600

800

1,000

Coal Hydro Wind Gas Nuclear Solar

Insta

lled C

apacity

(G

W)

2012 2020E

CAGR=4.4%

CAGR=-2.2%

CAGR=19.3%

CAGR=17.0%

CAGR=25.0%

CAGR=66.2%

221

326

420

-50

215

477

-200

0

200

400

600

800

1000

1200

1400

1600

1800

2012-2020E Shift

Pow

er G

enera

tion C

hange 2

012

-20E (

TW

h)

Wind

Gas

Nuclear

Hydro

Solar

Coal

Asian Coal, Power and Renewables 11 11

Chinese Coal – No Diamonds, Plenty of Rough

Source: Company Reports, Chinese Ministry of Railways, Media Reports, Bernstein Analysis and estimates

Xi-to-Sea Projects – Origin and Destination, Distance, Transport Capacity, Target Completion Date

BatutaHuanghua

Jining

Tongliao

Qinhuangdao

Chifeng

Jinzhou

DatongCaofeidian

Tianjin

Zhangjiakou

Rizhao

Lvliang

QingdaoJinan

Changzhi

Yantai

Longkou

DajiawaDezhou

Lianyungang

Xi’an

Jining to Tongliao

(Expansion), 923km, 80Mtpa new rail

capacity, 2014

Zhangjiakou to

Tangshan (Caofeidian), 528km,

200M tons new rail

capacity, 2014EY

Chifeng to

Jinzhou, 282km, 140M tons new rail

capacity, 2015

Longkou to Yantai,

113km, 2015

Dezhou to Dajiawa,

256km, 44.6M tons new rail capacity,

2014EY

Batuta to

Zhunge’er, 135km, 200Mtpa new rail

capacity, Oct 2013

Zhunge’er to

Shenchi, 180km, 200Mtpa new rail

capacity, 2014

Shenmu

Lvliang to Rizhao,

1,260km, 200M tons new rail

capacity, 2014

Handan to Huanghua,

460km, 40Mtpa new rail capacity, 2013EY

Handan

Handan to Jinan,

249km, 180M tons new rail capacity,

1H14

Handan to Changzhi

(Expansion), 223km, 200M tons new rail

capacity, 2014EY

New Lines

Existing Lines

Stations

Zhunge’er

Shuozhou/

Shenchi

Hohhot

Xilin Gol

Hohhot to Shengli, 245km,

200Mtpa new rail capacity, 2015 Zhenglanqi to Zhangjiakou,

247km, 30M tons new rail capacity, 2014

Baotou

Additional Coal

Start Distance Completion Rail Capacity

Date Project Location (km) Year (M tons)

Mar-10

Handan, Hebei to

Changzhi, Shanxi

(Expansion)

223 2014E 150

Nov-09Longkou to Yantai,

Shandong113 2014E 9

Apr-10Dezhou to Dajiawa,

Shandong256 2014E 22

Jun-08Chifeng, Inner Mongolia

to Jinzhou, Liaoning282 2015E 140

Mar-10

Zhangjiakou to

Tangshan (Caofeidian),

Hebei

528 2014E 200

Dec-09Lvliang, Shanxi to

Rizhao, Shandong1,260 2014E 200

Aug-10Jining to Tongliao, Inner

Mongolia (Expansion)923 2014E 43

Subtotal 3,585 764

Asian Coal, Power and Renewables 12 12

File:

\\ac03hkg0202\deptss\HKG_SSRES\

Asian Utilities\ Research Calls\Macro -

China\CHN Call 4 - Power Intensity.xls

Tab: GDP

File:

\\ac03hkg0202\deptss\HKG_SSRES\

Asian Utilities\ Research Calls\Macro -

China\CHN Call 4 - Power Intensity.xls

Tab: CPI

Chinese Power – Turn on the Lights, the Party’s Over

Low-intensity services sector on the rise. The GDP share shifts in the last decade have been from agriculture (a

moderately energy-intensive activity) to services (a low intensity activity) and manufacturing (a high-intensive activity).

Tertiary sector set to gain GDP share. If primary industry share asymptotes at ~10%, GDP share will shift from

secondary industry (high power-intensive activities) to the services sector (low power-intensive activities).

Source: NBS, CEIC, Bernstein analysis Source: NBS, CEIC, Bernstein analysis

China: GDP Share by Sector: 2000-

2013

China: Power Intensity by Sector:

2011

0.069

0.150

0.025

0.000

0.020

0.040

0.060

0.080

0.100

0.120

0.140

0.160

Agriculture Industry Services

Po

wer in

tensity

(K

Wh p

er R

MB

of G

DP

)

10.3%

45.4%

44.2%

0%

10%

20%

30%

40%

50%

60%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

GD

P b

y S

ecto

r (%

)

Agriculture Industry Services

Asian Coal, Power and Renewables 13 13

File: \\ac03hkg0202\deptss\HKG_SSRES\Asian Utilities\ Models\China Coal Demand

Model.xlsx

Tab: Exhibits

Chinese Coal – Basket Full of Biscuits

Source: CEIC, Bernstein analysis and estimates

From 2016, Chinese coal demand will fall in absolute terms, and that trend will never reverse. There are

5 primary drivers of falling consumption: (i) continuing investment in coal mining and transportation

infrastructure; ii) decreasing Chinese power intensity; (iii) increasing power generation capacity from nuclear,

gas, hydro and renewables; (iv) falling demand growth for steel, cement and fertilizer and the demise of

“inferior” end markets for coal; and (v) the emergence of the environment as a politically sensitive issue in

China.

Chinese Coal Consumption by Sector 2010-2020E

1,622 1,856 1,841 1,943 1,995 2,014 1,995 1,986 1,975 1,900 1,815

595649 658

695 733 768 799 799 799 799 799275

303 323333 343 351 352 350 347 343 337

152

141 169203 224 230 234 237 241 245 248

245

274 278292

295 296 293 288 284 275 266567

639 658658 592 533 479 432 388 350 315

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E

Chin

a C

oal C

onsum

ptio

n (

millio

n t

ons)

Pow er Steel Cement Fertilizer Mining Residential Other

3,561

3,977 4,0384,234 4,287

4,2924,247 4,183 4,120 3,993

3,858

Asian Coal, Power and Renewables 14 14

Disclosure Appendix

Asian Coal, Power and Renewables 15 15

Disclosure Appendix: Valuation Methodology

Shenhua, China Coal Energy, Yanzhou: P/FE and P/B multiple on 2015 Earnings/Book

Value estimates

Huaneng, Datang, CR Power: P/FE multiple and P/B multiple. Assume A-shares and H-

shares appreciate/depreciate in value by the same %

(M Shares) (USD M)

China Shenhua 1088.HK U HK$15.00 HK$19.36 17.0 50.7 43.9

China Coal Energy 1898.HK U HK$2.80 HK$3.77 44.2 25.8 8.3

1171.HK HK$4.00 HK$5.01 19.9 18.6

ADR:YZC USD5.16 USD6.35 ADR: 0.23 ADR: 2.1

902.HK HK$9.00 HK$6.21 20.4 19.6

ADR:HNP USD46.15 USD31.51 ADR: 0.04 ADR: 1.4

Datang 991.HK M HK$3.20 HK$2.85 11.9 5.2 7.3

CR Power 836.HK M HK$20.00 HK$17.88 5.8 14.0 11.0

Average Daily Trading Volume

(6 months)Market

Cap

(USD B)

Sector Company Ticker Rating Target Price Recent Price

(March 13, 2014)

Yanzhou Coal

Chinese

Coal

Huaneng

Chinese

Power

4.2

O 10.9

U

Note: The MXAPJ and SPX Indices closed at 458.57 and1,846.34 respectively on March 13,2014.

Asian Coal, Power and Renewables 16 16

Disclosure Appendix: Risks

There are numerous risks to our investment thesis. In both China and India, our base case forecasts assume continuing rapid economic growth and moderating levels of inflation. Electricity consumption growth in both markets is sensitive to economic growth. In the event that economic conditions deteriorate significantly, this would have a significant negative effect across the group.

In addition, some sector-specific risks are set out below.

Chinese Coal

There are numerous risks to our investment thesis on Shenhua, China Coal Energy and Yanzhou. Some of these risks are set out below.

First, contrary to our expectations, electricity demand growth may continue to grow at its historically high rate, increasing demand for thermal coal.

Second, contrary to our expectations, steel growth may accelerate, increasing demand for coking coal.

Third, coal production and rail transportation capacity may not increase at the rate that we are forecasting over the long term. As a result, coal pricing may not decline in the manner that we are anticipating. Further, in the event that rail transportation capacity expansion fails to materialize, movement of coal resources across internally-owned logistics and shipping assets may benefit diversified coal and generation companies like Shenhua.

Fourth, the companies may decide to alter their investment strategies or enter into new business segments, changing capital expenditures or dividend pay-out rates and dividend growth rates.

Fifth, China may relax its coal export quotas and India may become a more significant importer of coal than we are forecasting, providing a source of additional growth for the coal companies that are not currently included within our estimates.

Sixth, the global economy may accelerate, leading to higher than anticipated demand for Chinese manufactured goods, increasing demand for Chinese coal and pushing up the price of seaborne coal.

Seventh, the Chinese government may choose to stimulate the economy, resulting in an increase in demand for steel, power, cement and – ultimately- thermal and coking coal.

Chinese Power

There are numerous risks to our investment thesis on Datang, Huaneng and China Resources Power. Some of these risks are set out below.

First, contrary to our expectations, electricity demand growth may continue to grow at is historically high rate, raising utilization rates for all Chinese generation companies.

Second, coal production and rail transportation capacity may not increase at the rate that we are forecasting over the long term. As a result, coal pricing may not decline in the manner that we are anticipating and utilities with coal mining assets may benefit from their internal coal supply to a greater extent than we expect. Further, in the event that rail transportation capacity expansion fails to materialize, movement of coal resources across internally-owned logistics and shipping assets will benefit diversified generation companies.

Third, the companies may decide to alter their investment strategies or enter into new business segments, changing capital expenditures or dividend pay-out rates and dividend growth rates.

Fourth, the tariff process through which the NDRC stipulates the price that power generation plants in China are to receive for electricity generation may be altered. Such changes are difficult to predict. Market-based pricing mechanisms have been discussed and trialed in China on occasion over the last decade. The introduction of such a system would profoundly alter our investment conclusions.

Fifth, given that the electricity generation business in China is highly regulated, changes to regulations – and, in particular, changes to the electricity tariffs - may have a dramatic impact on valuation. Such changes are, almost by definition, difficult to predict but could rapidly improve profitability with little warning.

Asian Coal, Power and Renewables 17 17

Disclosure Appendix

SRO REQUIRED DISCLOSURES

References to "Bernstein" relate to Sanford C. Bernstein & Co., LLC, Sanford C. Bernstein Limited, Sanford C. Bernstein (Hong Kong) Limited, and Sanford C. Bernstein (business registration

number 53193989L), a unit of AllianceBernstein (Singapore) Ltd. which is a licensed entity under the Securities and Futures Act and registered with Company Registration No.

199703364C, collectively.

Bernstein analysts are compensated based on aggregate contributions to the research franchise as measured by account penetration, productivity and proactivity of investment ideas. No

analysts are compensated based on performance in, or contributions to, generating investment banking revenues.

Bernstein rates stocks based on forecasts of relative performance for the next 6-12 months versus the S&P 500 for stocks listed on the U.S. and Canadian exchanges, versus the MSCI Pan

Europe Index for stocks listed on the European exchanges (except for Russian companies), versus the MSCI Emerging Markets Index for Russian companies and stocks listed on

emerging markets exchanges outside of the Asia Pacific region, and versus the MSCI Asia Pacific ex-Japan Index for stocks listed on the Asian (ex-Japan) exchanges - unless otherwise

specified. We have three categories of ratings:

Outperform: Stock will outpace the market index by more than 15 pp in the year ahead.

Market-Perform: Stock will perform in line with the market index to within +/-15 pp in the year ahead.

Underperform: Stock will trail the performance of the market index by more than 15 pp in the year ahead.

Not Rated: The stock Rating, Target Price and estimates (if any) have been suspended temporarily.

As of 03/13/2014, Bernstein's ratings were distributed as follows: Outperform - 43.6% (0.4% banking clients) ; Market-Perform - 45.2% (0.4% banking clients); Underperform - 11.2% (0.0%

banking clients); Not Rated - 0.0% (0.0% banking clients). The numbers in parentheses represent the percentage of companies in each category to whom Bernstein provided investment

banking services within the last twelve (12) months.

This research publication covers six or more companies. For price chart disclosures, please visit www.bernsteinresearch.com, you can also write to either: Sanford C. Bernstein & Co. LLC,

Director of Compliance, 1345 Avenue of the Americas, New York, N.Y. 10105 or Sanford C. Bernstein Limited, Director of Compliance, 50 Berkeley Street, London W1J 8SB, United

Kingdom; or Sanford C. Bernstein (Hong Kong) Limited, Director of Compliance, Suites 3206-11, 32/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong, or

Sanford C. Bernstein (business registration number 53193989L) , a unit of AllianceBernstein (Singapore) Ltd. which is a licensed entity under the Securities and Futures Act and

registered with Company Registration No. 199703364C, Director of Compliance, 30 Cecil Street, #28-08 Prudential Tower, Singapore 049712.

12-Month Rating History as of 03/13/2014

Ticker Rating Changes

1088.HK U (RC) 12/14/11

1171.HK U (RC) 12/14/11

1898.HK U (RC) 06/13/12

836.HK M (RC) 03/07/13

902.HK O (RC) 09/12/13 M (RC) 03/07/13

991.HK M (RC) 03/03/11

Rating Guide: O - Outperform, M - Market-Perform, U - Underperform, N - Not Rated

Rating Actions: IC - Initiated Coverage, DC - Dropped Coverage, RC - Rating Change

OTHER DISCLOSURES

Asian Coal, Power and Renewables 18 18

OTHER DISCLOSURES

A price movement of a security which may be temporary will not necessarily trigger a recommendation change. Bernstein will advise as and when coverage of securities commences and

ceases. Bernstein has no policy or standard as to the frequency of any updates or changes to its coverage policies. Although the definition and application of these methods are based on

generally accepted industry practices and models, please note that there is a range of reasonable variations within these models. The application of models typically depends on forecasts of a

range of economic variables, which may include, but not limited to, interest rates, exchange rates, earnings, cash flows and risk factors that are subject to uncertainty and also may change

over time. Any valuation is dependent upon the subjective opinion of the analysts carrying out this valuation.

This document may not be passed on to any person in the United Kingdom (i) who is a retail client (ii) unless that person or entity qualifies as an authorised person or exempt person within the

meaning of section 19 of the UK Financial Services and Markets Act 2000 (the "Act"), or qualifies as a person to whom the financial promotion restriction imposed by the Act does not apply by

virtue of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, or is a person classified as an "professional client" for the purposes of the Conduct of Business Rules

of the Financial Conduct Authority.

To our readers in the United States: Sanford C. Bernstein & Co., LLC is distributing this publication in the United States and accepts responsibility for its contents. Any U.S. person receiving

this publication and wishing to effect securities transactions in any security discussed herein should do so only through Sanford C. Bernstein & Co., LLC.

To our readers in the United Kingdom: This publication has been issued or approved for issue in the United Kingdom by Sanford C. Bernstein Limited, authorised and regulated by the

Financial Conduct Authority and located at 50 Berkeley Street, London W1J 8SB, +44 (0)20-7170-5000.

To our readers in member states of the EEA: This publication is being distributed in the EEA by Sanford C. Bernstein Limited, which is authorised and regulated in the United Kingdom by

the Financial Conduct Authority and holds a passport under the Markets in Financial Instruments Directive.

To our readers in Hong Kong: This publication is being distributed in Hong Kong by Sanford C. Bernstein (Hong Kong) Limited which is licensed and regulated by the Hong Kong Securities

and Futures Commission (Central Entity No. AXC846). This publication is solely for professional investors only, as defined in the Securities and Futures Ordinance (Cap. 571).

To our readers in Singapore: This publication is being distributed in Singapore by Sanford C. Bernstein, a unit of AllianceBernstein (Singapore) Ltd., only to accredited investors or

institutional investors, as defined in the Securities and Futures Act (Chapter 289). Recipients in Singapore should contact AllianceBernstein (Singapore) Ltd. in respect of matters arising from,

or in connection with, this publication. AllianceBernstein (Singapore) Ltd. is a licensed entity under the Securities and Futures Act and registered with Company Registration No. 199703364C.

It is regulated by the Monetary Authority of Singapore and located at 30 Cecil Street, #28-08 Prudential Tower, Singapore 049712, +65-62304600. The business name "Sanford C. Bernstein"

is registered under business registration number 53193989L.

To our readers in Australia: Sanford C. Bernstein Limited and Sanford C. Bernstein (Hong Kong) Limited are exempt from the requirement to hold an Australian financial services licence

under the Corporations Act 2001 in respect of the provision of the following financial services to wholesale clients:

providing financial product advice;

dealing in a financial product;

making a market for a financial product; and

providing a custodial or depository service.

Sanford C. Bernstein Limited and Sanford C. Bernstein (Hong Kong) Limited will distribute the requested global research to wholesale clients domiciled within Australia.

Sanford C. Bernstein Limited, Sanford C. Bernstein (Hong Kong) Limited and AllianceBernstein (Singapore) Ltd. are regulated by, respectively, the Financial Conduct Authority under U.K.

laws, by the Hong Kong Securities and Futures Commission under Hong Kong laws, and by the Monetary Authority of Singapore under Singapore laws, all of which differ from Australian laws.

One or more of the officers, directors, or employees of Sanford C. Bernstein & Co., LLC, Sanford C. Bernstein Limited, Sanford C. Bernstein (Hong Kong) Limited, Sanford C. Bernstein

Asian Coal, Power and Renewables 19 19

(business registration number 53193989L) , a unit of AllianceBernstein (Singapore) Ltd. which is a licensed entity under the Securities and Futures Act and registered with Company

Registration No. 199703364C, and/or their affiliates may at any time hold, increase or decrease positions in securities of any company mentioned herein.

Bernstein or its affiliates may provide investment management or other services to the pension or profit sharing plans, or employees of any company mentioned herein, and may give advice to

others as to investments in such companies. These entities may effect transactions that are similar to or different from those recommended herein.

Bernstein Research Publications are disseminated to our customers through posting on the firm's password protected website, www.bernsteinresearch.com. Additionally, Bernstein Research

Publications are available through email, postal mail and commercial research portals. If you wish to alter your current distribution method, please contact your salesperson for details.

Bernstein and/or its affiliates do and seek to do business with companies covered in its research publications. As a result, investors should be aware that Bernstein and/or its affiliates may

have a conflict of interest that could affect the objectivity of this publication. Investors should consider this publication as only a single factor in making their investment decisions.

This publication has been published and distributed in accordance with Bernstein's policy for management of conflicts of interest in investment research, a copy of which is available from

Sanford C. Bernstein & Co., LLC, Director of Compliance, 1345 Avenue of the Americas, New York, N.Y. 10105, Sanford C. Bernstein Limited, Director of Compliance, 50 Berkeley Street,

London W1J 8SB, United Kingdom, or Sanford C. Bernstein (Hong Kong) Limited, Director of Compliance, Suites 3206-11, 32/F, One International Finance Centre, 1 Harbour View Street,

Central, Hong Kong, or Sanford C. Bernstein (business registration number 53193989L) , a unit of AllianceBernstein (Singapore) Ltd. which is a licensed entity under the Securities and

Futures Act and registered with Company Registration No. 199703364C, Director of Compliance, 30 Cecil Street, #28-08 Prudential Tower, Singapore 049712. Additional disclosures and

information regarding Bernstein's business are available on our website www.bernsteinresearch.com.

CERTIFICATIONS

I/(we), Michael W. Parker, Senior Analyst(s)/Analyst(s), certify that all of the views expressed in this publication accurately reflect my/(our) personal views about any and all of the subject

securities or issuers and that no part of my/(our) compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views in this publication.

Copyright 2014, Sanford C. Bernstein & Co., LLC, Sanford C. Bernstein Limited, Sanford C. Bernstein (Hong Kong) Limited, and AllianceBernstein (Singapore) Ltd., subsidiaries of AllianceBernstein L.P. ~1345 Avenue of the Americas ~ NY, NY 10105 ~212/756-4400. All rights reserved.

This publication is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of, or located in any locality, state, country or other jurisdiction where

such distribution, publication, availability or use would be contrary to law or regulation or which would subject Bernstein or any of their subsidiaries or affiliates to any registration or licensing

requirement within such jurisdiction. This publication is based upon public sources we believe to be reliable, but no representation is made by us that the publication is accurate or complete.

We do not undertake to advise you of any change in the reported information or in the opinions herein. This publication was prepared and issued by Bernstein for distribution to eligible

counterparties or professional clients. This publication is not an offer to buy or sell any security, and it does not constitute investment, legal or tax advice. The investments referred to herein

may not be suitable for you. Investors must make their own investment decisions in consultation with their professional advisors in light of their specific circumstances. The value of

investments may fluctuate, and investments that are denominated in foreign currencies may fluctuate in value as a result of exposure to exchange rate movements. Information about past

performance of an investment is not necessarily a guide to, indicator of, or assurance of, future performance.