Shandong Huaneng Power Development, the first China firm to list in New York, has reported a 19.6 per cent rise in profit to 404.53 million yuan (about HK$376.37 million) for the June interim. The increase came as the N-share company said its return on debt-financed fixed assets could be affected by Beijing's future regulation of the power industry. Company chairman Yu Xinyang said: 'The company's strong performance reflects both the approval of our tariff increase for 1996 as well as the fact that output for the first half exceeded that of the same period in 1995.' In May, the company received approval for a rise in on-grid tariff dating back to January. The increase ranged from 8.5 per cent to 23 per cent for its three plants in Dezhou, Jining and Weihai. An interim dividend of 0.02 yuan will be paid on earnings per share of 0.094 yuan. Expenses rose 15.5 per cent to 744.1 million yuan, which were inflated by depreciation charges, while interest charges swelled 63.4 per cent to 43.2 million yuan.