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粤电力B:2020年年度报告(英文版) 下载公告
公告日期:2021-04-10

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Guangdong Electric Power Development Co., Ltd.

2020 Annual Report

April 2021

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

I. Important Notice, Table of Contents and Definitions

The Board of Directors , Supervisory Committee ,Directors, Supervisors and Senior Executives of the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this reportand shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.

Mr.Wang Jin, The Company leader, Mr. Liu Wei, Chief financial officer and the Mr.Meng Fei, the person incharge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity andcompleteness of the financial report enclosed in this Annual report.Other directors attending the Meeting for annual report deliberation except for the followed:

The name of director who did not

attend the meeting in person

The name of director who did not attend the meeting in personPositionsReasonThe name of director who was authorized
Wen LianheDirectorDue to businessWang Jin
Chen ZeDirectorDue to businessWang Jin
Li FangjeDirectorDue to businessZheng Yunpeng
Li BaobingDirectorDue to businessZheng Yunpeng
Yan MingDirectorDue to businessRao Subo
Shen HongtaoIndependent directorDue to businessSha Qilin

This annual report involves the forecasting description such as the future plans, and does not constitute the actualcommitments of the company to the investors. Investors and stakeholders should all maintain sufficient awareness of risks forthis and understand the differences between plans, forecasts and commitments.The Company is mainly engaged in thermal power generation. The business of thermal power generation isgreatly affected by factors including electric power demand and fuel price. Refer to Section IX-9 of Chapter 4 ofthis annual report-situation faced and countermeasures for relevant information.The preplan profit distribution of the Company deliberated and approved by the Board is: Total share of of5,250,283,986 for Base on the Company‘s total share capital ,the Company would distribute cash dividend to all the shareholders at the rate of CNY 1.2 for every 10 shares (with tax inclusive),with 0 bonus shares(including tax), and not converting capital reserve into share capital.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Table of Contents

I.Important Notice, Table of contents and DefinitionsII. Basic Information of the Company and Financial indexIII. Outline of Company BusinessIV. Management’s Discussion and AnalysisV. Important EventsVI. Change of share capital and shareholding of Principal ShareholdersVII. Situation of the Preferred SharesVIII. Information about convertible corporate bondsIX. Information about Directors, Supervisors and Senior ExecutivesX. Administrative structureXI. Corporate BondXII. Financial ReportXIII. Documents available for inspection

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Definition

Terms to be defined

Terms to be definedRefers toDefinition
Guangdong Energy GroupRefers toGuangdong Energy Group Co., Ltd.
Guangqian CompanyRefers toShenzhen Guangqian Electric Power Co., Ltd.
Bohe CompanyRefers to
Dapu CompanyRefers toGuangdong Dapu Power Generation Co., Ltd.
Wind Power CompanyRefers toGuangdong Wind Power Co., Ltd.
Lincang CompanyRefers toLincang Yudean Energy Co., Ltd.
Qujie Wind Power CompanyRefers toGuangdong Yudean Qujie Wind Power Generation Co., Ltd.
Electric Power Sales CompanyRefers toGuangdong Yudean Electric Power Sales Co., Ltd.
Anxin Electric Inspection & Installation CompanyRefers toGuangdong Yudean Anxin Electric Inspection & Installation Co., Ltd
Tongdao Wind Power CompanyRefers toTongdao Yuexin Wind Power Generation Co., Ltd.
Zhongyue CompamyRefers toZhanjiang Zhongyue Energy Co., Ltd.
Yuejiang CompanyRefers toGuangdong Shaoguan Yuejiang Power Generation Co., Ltd.
Yongan Natural Gas CompanyRefers toGuangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd.
Leizhou Wind Power CompanyRefers toGuangdong Yudean Leizhou Wind Power Generation Co., Ltd.
Zhanjiang CompanyRefers toZhanjiang Electric Power Co., Ltd.
Zhanjiang Wind Power CompanyRefers toGuangdong Yudean Zhanjiang Wind Power Co., Ltd.
Huizhou Natural Gas CompanyRefers toGuangdong Huizhou Natural Gas Power Co., Ltd.
Maoming Thermal Power PlantRefers toGuangdong Energy Maoming Thermal Power Co., Ltd.(formerly " Maoming Zhenneng Thermal Power Co., Ltd. " renamed on November 3, 2020)
Jinghai CompanyRefers toGuangdong Yudean Jinghai Power Co., Ltd.
Red Bay CompanyRefers toGuangdong Red Bay Power Co., Ltd.
Huadu Natural Gas CompanyRefers toGuangdong Huadu Natural Gas Thermal Power Co., Ltd.
Humen Power CompanyRefers toGuangdong Yudean Humen Power Co., Ltd.
Yuejia CompanyRefers toGuangdong Yuejia Electric Power Co., Ltd.
Pinghai Power PlantRefers toGuangdong Hluizhou Pinghai Power Co., Ltd.
Pingdian Integrated Energy CompanyRefers toHuizhou Pingdian Integrated Energy Co., Ltd.
Zhencheng Integrated Energy CompanyRefers toGuangdong Yudean Zhencheng Integrated Energy Co., Ltd.
Binhaiwan Energy CompanyRefers toGuangdong Yudean Binhaiwan Energy Co., Ltd.
Dianbai Wind Power CompanyRefers toGuangdong Yudean Dianbai Wind Power Co., Ltd.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Yangjiang Wind Power Company

Yangjiang Wind Power CompanyRefers toGuangdong Yudean Yangjiang Offshore Wind Power Co., Ltd.
Heping Wind Power CompanyRefers toGuangdong Yudean Heping Wind Power Co., Ltd.
Pingyuan Wind Power CompanyRefers toGuangdong Yudean Pingyuan Wind Power Co., Ltd.
Zhuhai Wind Power CompanyRefers toGuangdong Yudean Zhuhai Offshore Wind Power Co., Ltd.
Wuxuan Wind Power CompanyRefers toGuangxi Wuxuan Yudean New Energy Co., Ltd.
Xupu Wind Power CompanyRefers toHunan Xupu Yuefeng New Energy Co., Ltd.
Shibeishan Wind PowerRefers toGuangdong Yudean Shibeishan Wind Energy Development Co., Ltd.
Huilai Wind Power CompanyRefers toHuilai Wind Power Generation Co., Ltd.
Yudean Industry Fuel CompanyRefers toGuangdong Power Industry Fuel Co., Ltd.
Yudean Insurance Captive CompanyRefers toGuangdong Yudean Property Insurance Captive Co., Ltd.
Shanxi Energy CompanyRefers toShanxi Yudean Energy Co., Ltd.
Yudean Shipping CompanyRefers toGuangdong Yudean Shipping Co., Ltd.
Yudean Western Investment CompanyRefers toGuangdong Yudeann Holdings Western Investment Co., Ltd.
Energy Group Finance CompanyRefers toGuangdong Energy Group Finance Co., Ltd.
Guohua Taishan CompanyRefers toGuangdong Guohua Yudean Taishan Power Generation Co., Ltd.
Weixin Energy Co., Ltd.Refers toYunnan Yuntou Weixin Energy Co., Ltd.
Zhongxinkeng hydropower stationRefers toYangshan Zhongxinkeng Power Co., Ltd.
Jiangkeng hydropower stationRefers toYangshan Jiangkeng hydropower station
Southern Offshore wind powerRefers toSouthern Offshore wind power Union Development Co., Ltd.
Sunshine InsuranceRefers toSunshine Insurance Group Co., Ltd.
Shenzhen CapitalRefers toShenzhen Capital Group Co., Ltd.
GMGRefers toGMG International Tendering Co., Ltd.
Shenzhen EnergyRefers toShenzhen Energy Group Co., Ltd.
Shenergy CompanyRefers toShenergy Company Limited
Environmental Protection CompanyRefers toGuangdong Yudean Environmental Protection Co., Ltd

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

II. Basic Information of the Company and Financial indexI.Company information

Stock abbreviation

Stock abbreviationYue Dian Li A, Yue Dian Li BStock code:000539,200539
Stock exchange for listingShenzhen Stock Exchange
Name in Chinese广东电力发展股份有限公司
Abbreviation of Registered Company Name in Chinese(If any)粤电力
English name (If any)GUANGDONG ELECTRIC POWER DEVELOPMENT CO.,LTD
English abbreviation (If any)GED
Legal RepresentativeWang Jin
Registered address33-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province
Postal code of the Registered Address510630
Internet Web Sitehttp://www.ged.com.cn
E-mailged@ged.com.cn

Ⅱ.Contact person and contact manner

Board secretarySecurities affairs Representative
NameLiu WeiQin Xiao
Contact address35/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province
Tel(020)87570251(020)87570251
Fax(020)85138084(020)85138084
E-mailliuw@ged.com.cnqinxiao@ged.com.cn

Ⅲ. Information disclosure and placed

Newspapers selected by the Company for information disclosureChina Securities Daily, Securities Times and Hong Kong Commercial Daily(overseas newspaper for English version)
Internet website designated by CSRC for publishing the Annual report of the Companyhttp://www.cninfo.com.cn
The place where the Annual report is prepared and placedAffair Dept. Of the Board of directors of the Company

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Ⅳ.Changes i n Registration

Organization Code

Organization Code91440000617419493W
Changes in principal business activities since listing (if any)No change
Changes is the controlling shareholder in the past (is any)No change

Ⅴ. Other Relevant InformationCPAs engaged

Name of the CPAsPWC Certified Public Accountants (special general partnership)
Office address11/F,PricewaterhouseCoopers Center,2 Corporate Avenue 202 Hu Bin Road, Huangpu District, Shanghai
Names of the Certified Public Accountants as the signatoriesWang Bin, Li Yanhua

The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.

□Applicable √Not Applicable

The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period

□Applicable √Not Applicable

Ⅵ.Summary of Accounting data and Financial indexIndicate by tick mark whether there is any retrospectively restated datum in the table below.

□ Yes √ No

20202019Changed over last year(%)2018
Operating income(RMB)28,329,065,39129,360,155,150-3.51%27,408,514,178
Net profit attributable to the shareholders of the listed company(RMB)1,746,280,1321,146,767,03352.28%474,461,997
Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company(RMB)1,530,448,1931,069,396,19643.11%412,062,957
Cash flow generated by business operation, net(RMB)6,280,781,1698,272,683,112-24.08%5,999,936,356
Basic earning per share(RMB/Share)0.33260.218452.28%0.09
Diluted gains per share(RMB/Share)0.33260.218452.28%0.09

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Net asset earning ratio(%)

Net asset earning ratio(%)6.54%4.77%1.77%2.02%
End of 2020End of 2019Changed over last year(%)End of 2018
Gross assets(RMB)85,970,818,16875,472,027,12313.91%73,329,662,306
Net assets attributable to shareholders of the listed company(RMB)27,369,995,42226,178,241,0774.55%24,227,302,288

The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal yearsis negative, and the audit report of last year shows that the ability to continue operating is uncertain

□Yes √No

The lower one of net profit before and after deducting the non-recurring gains/loses is negative

□Yes √No

Ⅶ.The differences between domestic and international accounting standards1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosedin the financial reports of differences in net income and net assets.

√ Applicable □Not applicable

In RMB

Net profit attributable to the shareholders of the listed companyNet Assets attributable to the shareholders of the listed company
Amount in the reporting periodAmount in the previous periodEnd of the reporting periodBeginning of the reporting period
According to CAS1,746,280,1321,146,767,03327,369,995,42226,178,241,077
Items and amount adjusted according to IAS
The difference arising from recognition of goodwill after merger of enterprises under the same control-25,984,22338,638,77738,638,777
Difference arising from recognition of land use value after enterprise merger-630,000-630,00016,340,00016,970,000
Influence on minority interests54,12054,1204,918,4594,864,339
According to IAS1,745,704,2521,120,206,93027,429,892,65826,238,714,193

2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccounting standards.

□ Applicable √Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.

3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.

√ Applicable □ Not applicable

(a)

(a)The difference arising from recognition of goodwill after merger of enterprises under the same control and recognition of land value after enterprise merger.
As required by new Chinese accounting standards, the goodwill formed by the merger of enterprises under the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS, the golldwill formed by the merger of enterprises under the same control shall be recognized and equal to the difference between merger cost and share of fair value of recognizable net assets of the purchased party obtained in merger. Meanwhile, all assets of the purchased party obtained in merger shall be accounted for according to their fair value while such assets shall be accounted for according to their book value according to original Chinese accounting standards for business enterprises. Therefore, this difference will continue to exist.
(b)Influence on minority interests
Housing reform loss occurred to the Company and some holding subsidiaries. Therefore, there’s some influence on minority interests.

Ⅷ.Main Financial Index by Quarters

In RMB

First quarterSecond quarterThird quarterFourth quarter
Operating income4,703,863,8167,836,054,0078,313,722,2827,475,425,286
Net profit attributable to the shareholders of the listed company7,373,105806,311,390755,703,910176,891,727
Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company-372,094784,914,803753,661,026-7,755,542
Net Cash flow generated by business operation1,170,574,3442,847,647,5532,470,190,633-207,631,361

Whether significant variances exist between the above financial index or the index with its sum and the financialindex of the quarterly report as well as semi-annual report index disclosed by the Company.

□ Yes √No

Ⅸ.Items and amount of non-current gains and losses

√Applicable □Not applicable

In RMB

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Items

ItemsAmount (2020)Amount (2019)Amount (2018)Notes
Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made)340,976,36120,503,4241,572,097It was mainly because Yuejia received compensation of RMB 293.77 million for land recovery and RMB 51.03 million for disposal of fixed assets this year.
Government subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies)30,457,19833,284,06943,530,965Various government subsidies received by branch companies and subsidiaries.
Gain equal to the amount by which investment costs for the Company to acquire subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments9,784,791It was mainly due to the income generated by the acquisition of Huaguoquan Company and the acquisition of the environmental protection company by the fuel company.
Switch back of provision for depreciation of account receivable which was singly taken depreciation test.48,647,647
According to tax, accounting and other laws, regulations, the requirements of the current Gain/loss for a one-time adjustment of the impact of the current Gain/loss;-4,449,214-12,679,505
Net amount of non-operating income and expense except the aforesaid items41,325,4785,674,80662,976,212It was mainly due to the asset scrapping loss of branch companies and subsidiaries.
Less: .Amount of influence of income tax106,618,39226,385,66325,191,469
Less: Amount of influence of minority interests100,093,497-95,7687,809,260
Total215,831,93977,370,83762,399,040--

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

for Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.

√Applicable □ Not applicable

Items

ItemsAmount involvedReason
Value-added tax will be refunded immediately9,240,948Comply with national policies and regulations, and continue to occur
Carbon emission quota used to fulfil the emission reduction obligation-57,470,471Comply with national policies and regulations, and continue to occur

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

III. Outline of Company Business

Ⅰ.Main Business the Company is Engaged in During the Report PeriodThe Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No.15-Listed Companies Engaged in Power-related BusinessThe Company mainly engages in the investment, construction and operation management of power projects, and theproduction and sales of electric power. It belongs to the power, heat production and supply industry classified in the“Guidelines for the Industry Classification of Listed Companies” by the China Securities Regulatory Commission.Since its foundation, the Company has always adhered to the business tenet of “Capital from the people, using it forelectricity, and benefiting the public” and adheres to the business policy of “Centering on the main business ofelectricity, with diversified development”, focusing on the main business of power and making the power structurego diversified. In addition to the development, construction and operation of large-scale coal-fired power plants, italso has clean energy projects such as LNG power generation, wind power generation and hydropower generation,which provides reliable and clean energy to users through the grid company. As of the end of the reporting period,the company has controllable installed capacity of 23.273 million kilowatts, including holding installed capacityof 21.612 million kilowatts and equity participation installed capacity of 1.661 million kilowatts. Including: theholding installed capacity for coal-fired power generation of 17.15 million kilowatts; the holding installedcapacity for gas and electricity of 3.72 million kilowatts and renewable energy generation like wind power andhydropower of 742,000 kilowatts. Clean energy installation accounted for 20.65%.In addition, the company is entrustedwith managing the installed capacity of 13.286 million kilowatts .Income source is primarily contributed by power production and sales, and main business income is derived fromGuangdong Province. The company electricity sales price is subject to the benchmark price verified by the priceauthority per relevant policies based on National Development and Reform Commission (NDRC) and theelectricity transaction price through the market trade implementation per Guangdong Electricity Market TradeBasic Rules and supporting files. In the reporting period, the electricity sold is 69.859 billion kilowatt-hours,a decrease of 1.85% YOY; average price stated in the consolidated statements is 447.27 Yuan/ thousandskilowatt-hours(tax included ,the same below ), YOY drop of 16.22 Yuan/ thousands kilowatt-hours; the totaloperating income was RMB 28,329.0654 million, a decrease of RMB 1,031.0898 million or a decrease of 3.51%YOY.The company's business is dominated by thermal power generation, and the fuel costs account for a large portion ofoperating costs, thus the fluctuations in coal prices and gas prices have a significant impact on the company'soperating performance. During the reporting period, affected by the increase in power generation and the continuousincrease in coal prices, the company’s fuel costs were 15,978.6732 million yuan, which accounted for 71.10% ofthe main business costs; Affected by the fall in electricity and coal prices, a decrease of 1,624.1609 million yuan ora decrease of 9.23% over the same period of last year.During the reporting period, affected by the steady recovery of the macro economy, continuous stability of thecompany's power production, and the effective cost control, the Company's gross profit of power generation andnet profit attributable to its parent company increased significantly year-on-year. the Company achieved a net

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

profit of 1,746.2801 million yuan attributable to the parent company for the whole year, a YOY increase of 52.28%.Ⅱ.Major Changes in Main Assets

1.Major Changes in Main Assets

Main assets

Main assetsMajor changes
Equity assetsNo major changes
Fixed assetsNo major changes
Intangible assetsNo major changes
Construction in processNo major changes

2. Main Conditions of Overseas Assets

□ Applicable √Not applicable

III.Analysis On core Competitiveness

1. The largest listed company of power in Guangdong

The Company's main power generation assets are located in Guangdong Province, with a total asset size of morethan 85.9 billion. It is the largest listed company of power in Guangdong Province. By the end of 2020, Thecompany's controllable installed capacity and entrusted managed installed capacity totaled 36.216 millionkilowatts , accounting for 25% of the total installed capacity of Guangdong Province.

2. Strong background and resource advantages

As a provincial key energy enterprise, Guangdong Energy Group, the controlling shareholder of the company, hasbeen actively supporting the development and expansion of the company by taking advantage of its resources,technology and asset scale. As the only listed company and the main force of Guangdong's energy resources, thecompany has always been subordinated to serving the overall situation of the reform and development ofGuangdong Province and Guangdong Energy Group. It has deeply cultivated the main power industry, fullyplayed the value discovery function and resource allocation function of the capital market, and assisted the reformand development of Guangdong Province's energy resources.

3. Comprehensive advantages of main business

Guided by the national energy development strategy, the Company is preparing the "14th Five-Year Plan" incombination with its own condition, and will implement the "1+2+3+X" strategy in the future - to build afirst-class green and low-carbon power listed company, coordinate safety and development, optimize andstrengthen coal, gas and biomass power generation services, and vigorously develop new energy, energy storage,hydrogen energy and land park development. The Company has abundant project reserves and great developmentpotential. The Company has clear main business, reasonable structure, outstanding industrial position and marketshare, strong comprehensive strength and great development potential.

4. Competitive advantage in electricity market

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

The company's generator set has high parameters, large capacity, high operation efficiency, low coal consumption,stable operation, superior environmental protection performance and strong market competitive advantage. In2020, the company completed a total of 58.649 billion kilowatt-hours of electricity in the market, and the scale ofelectricity sales continued to rank first in the province, with electricity sales prices superior to the province'saverage. The company gives full play to its three advantages of scale, brand and service. With its marketingservice network all over the province and its technical accumulation and comprehensive resources in the powerindustry, the company provides auxiliary value-added services such as peak regulation, frequency modulation andbackup for the power grid, and provides high-quality value-added services such as comprehensive energy savingand power consumption consultation for users.

5. Advantage of financial resources

By the end of 2020, the company's total assets were 85.971 billion yuan, net assets were 35.743 billion yuan, netassets attributable to the parent were 27.370 billion yuan, and net profits attributable to the parent were 1.746billion yuan; Net cash inflow from operating activities was 6.281 billion yuan, net cash outflow from investmentactivities was 8.114 billion yuan, and net cash outflow from financing activities was 2.517 billion yuan. Thecompany has large assets, stable operating results, abundant cash flow and strong financial resources.

6. Regional development advantages

As the main energy source in Guangdong Province, the company shoulders the important task of helpingGuangdong Province to build a clean, low-carbon, safe and efficient modern energy system. The company willactively integrate into the construction of Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen's advanceddemonstration zone and the development of Guangdong's "one core, one belt and one area". Company willsteadily push forward the construction of key energy projects and the development of new energy resources in theprovince, actively seek to expand into regions with better resource conditions and higher power demand, andcontribute to the implementation of the "30.60" goal.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

IV. Management’s Discussion and AnalysisⅠ.GeneralAt the beginning of 2020, affected by the COVID-19, the demand for industrial electricity in the whole societydeclined. However, with the solid advancement of work resumption, production resumption, business resumptionand market resumption, the electricity consumption of the whole society in Guangdong Province rose against thetrend after going through the bottom, reaching 692.612 billion kWh, with a year-on-year increase of 3.44%, andthe growth rate slowed down by 2.5 percentage points. In 2020, Guangdong received 205.7 billion kWh of XD,with a year-on-year increase of 1.76%, and the output of XD exceeded the planned transmission of 35.6 billionkWh; In terms of installed capacity, a total of 14.27 million kilowatts of nuclear power and thermal power unitswere newly put into operation in the province, and the newly added installed capacity under unifiedcommissioning accounts for 9.67% of the capacity under unified commissioning. Affected by the continuousincrease of power transmission from XD, the year-on-year increase of unit capacity in the province, and thesubstantial increase of renewable energy such as wind power in the province, the utilization hours of coal-firedunits in the province were 3,882 hours, the on-grid power of coal-fired units was 56.473 billion kWh, with ayear-on-year decrease of 3.76%, the on-grid power of air machines was 11.687 billion kWh, with a year-on-yearincrease of 2.71%, and the on-grid power of wind power was 1.279 billion kWh, with a year-on-year increase of

4.24%.

In 2020, the Company's market-oriented transaction scale expanded, and the discount rate increased. The averageon-grid price of consolidated statements was RMB 447.27/thousand kWh (including tax, the same below), downRMB 16.22/thousand kWh year-on-year, with a decrease of 3.50%. However, due to the year-on-year decline infuel prices, the dividends from the implementation of tax reduction and fee reduction policies, and the Company'seffective control over all costs and expenses, the profit of the Company's power generation business increasedsignificantly year on year.By the end of 2020, the company's consolidated statement had total assets of 85.971 billion yuan, with ayear-on-year increase of 13.91%; The equity attributable to the shareholders of the parent company was 27.370billion yuan, with a year-on-year increase of 4.55%. The company's consolidated operating income reached

28.329 billion yuan, with a year-on-year decrease of 3.51; Net profit attributable to shareholders of the parentcompany was 1.746billion yuan, with a year-on-year increase of 52.28; Earnings per share were 0.33yuan (0.22yuan in the same period last year). According to the consolidated statement, the company's liabilities totaled

50.227 billion yuan, with an asset-liability ratio of 58.42%.

In 2020, the Company resolutely implemented the requirements of supply-side structural reform in the powerindustry, adhered to the clean, low-carbon, safe and efficient energy development strategy, and continuouslyoptimized the power supply structure and asset structure. All offshore wind turbines in Wailuo, Zhanjiang wereofficially put into operation, and Units 1 and 2 (2 million kilowatts) of Bohe Project were officially put intooperation after 168-hour trial run. The gas and power projects in Huadu and Dongguan Ningzhou were acceleratedand the power supply structure was continuously optimized. By the end of 2020, the Company had controllableinstalled capacity of 23.273 million kilowatts, with a year-on-year increase of 10.80%, of which the proportion ofclean energy increased to 20.65%. In the future, the Company will also adhere to the new development concept,

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

continue to promote the optimization and adjustment of power supply structure, actively integrate into theconstruction of Guangdong-Hong Kong-Macao Greater Bay Area and Shenzhen pioneering demonstration zonesand the development of Guangdong's "One Core, One Belt and One Area", actively respond to the "30?60" goal ofcarbon peaking and carbon neutrality in China, and vigorously promote the Company's clean and low-carbontransformation for energy.In 2020, the company implemented the Guidelines for the Governance of Listed Companies and the relatedrequirement of the CSRC on improving the quality of listed companies, earnestly implemented prudentmanagement, abode by laws and regulations, emphasize its core business, respected investors, continuouslyimproved the level of corporate governance and enhanced the development quality of listed companies. The boardof directors organized 9 on-site meetings and 3 communication meetings, and completed the examination andapproval of 55 proposals by the board of directors. The topics covered include regular reports, internal controlevaluation, comprehensive risk management, profit distribution plan, major investment and financing, majorrelated transactions, and important personnel appointment and removal. All proposals were adopted andeffectively implemented. The board of directors also convened 4 shareholders' meetings, and all 17 proposalssubmitted to the shareholders' meeting for deliberation were adopted and effectively implemented. The companysuccessfully completed the preparation and disclosure of periodic reports and temporary announcements, andissued 107 announcements throughout the year. The information disclosure has been evaluated as "A" byShenzhen Stock Exchange for Seven consecutive years.The Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No.15-Listed Companies Engaged in Power-related BusinessIn 2020, the scale of market-oriented transactions in Guangdong Province continued to expand, and the annualtransaction and monthly centralized competitive transaction reached 248.85 billion kWh, with a year-on-yearincrease of 27.60%, and the average transaction price difference was RMB -0.04543/kWh. Including, the annualtrading power of 216.208 billion kWh, and the average transaction price difference of RMB -0.04712/kWh; Theaccumulated monthly centralized bidding power was 32.645 billion kWh, and the average transaction pricedifference was RMB -0.03423/kWh. In 2020, the Company's on-grid electricity was 69.859 billion kWh, of whichthe total market trading electricity was 58.649 billion kWh, accounting for 83.95%, with a year-on-year increaseof 23.557 billion kWh.In 2020, the electricity trading scale in Guangdong market was 248.85 billion kWh, accounting for 76.27% of theprovince's thermal power generation of 326.263 billion kWh. In 2021, the total transaction scale of Guangdongpower market is expected to reach 270 billion kWh, and the proportion of electricity in the Company's market isexpected to further increase from 80% in 2020.Main Production and Operation Information

Items

ItemsThis reporting periodSame period last year
Total installed capacity ('0,000 kW)2,327.292,103.5
Installed capacity of units that are newly put into production ('0,000 kW)220.446
Planned installed capacity of approved projects ('0,000 kW)706.1468
Planned installed capacity of projects under construction ('0,000 kW)566.1468

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Power generation ('00,000,000 kWh)

Power generation ('00,000,000 kWh)737.51752.83
On-grid electricity or electricity sales ('00,000,000 kWh)698.59711.75
Average on-grid price or selling price (RMB/ kWh, including tax)0.4470.463
Average power consumption rate of power plant (%)5.43%5.59%
Power plant utilization hours (h)3,7123,811

(1)Operation Information of thermal power in Guangdong Province

ItemsThis reporting periodSame period last year
Total installed capacity ('0,000 kW)2,249.582,046.58
Installed capacity of units that are newly put into production ('0,000 kW)20046
Planned installed capacity of approved projects ('0,000 kW)435.5338
Planned installed capacity of projects under construction ('0,000 kW)435.5338
Power generation ('00,000,000 kWh)719.92741.25
On-grid electricity or electricity sales ('00,000,000 kWh)681.60700.58
Average on-grid price or selling price (RMB/ kWh, including tax)0.4420.460
Average power consumption rate of power plant (%)5.325.62
Power plant utilization hours (h)37493903

(2)Operation Information of wind power in Guangdong Province

ItemsThis reporting periodSame period last year
Total installed capacity ('0,000 kW)64.1143.32
Installed capacity of units that are newly put into production ('0,000 kW)20.40
Planned installed capacity of approved projects ('0,000 kW)270.6130
Planned installed capacity of projects under construction ('0,000 kW)130.6130
Power generation ('00,000,000 kWh)12.797.56

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

On-grid electricity or electricity sales('00,000,000 kWh)

On-grid electricity or electricity sales ('00,000,000 kWh)12.277.22
Average on-grid price or selling price (RMB/ kWh, including tax)0.6570.566
Average power consumption rate of power plant (%)4.334.77
Power plant utilization hours (h)20332021

(3)Operation Information of water power in Yunnan Province

ItemsThis reporting periodSame period last year
Total installed capacity ('0,000 kW)13.6013.60
Installed capacity of units that are newly put into production ('0,000 kW)00
Planned installed capacity of approved projects ('0,000 kW)00
Planned installed capacity of projects under construction ('0,000 kW)00
Power generation ('00,000,000 kWh)4.804.02
On-grid electricity or electricity sales ('00,000,000 kWh)4.723.95
Average on-grid price or selling price (RMB/ kWh, including tax)0.1690.168
Average power consumption rate of power plant (%)1.811.79
Power plant utilization hours (h)36173030

Electricity sales of the Company

√ Applicable □Not applicable

Established in July 2015, Guangdong Yudean Electric Power Marketing Co., Ltd., a wholly-owned company ofthe Company, is one of the first power sales companies with market access, with a number of "SD01". Based onthe business of purchasing and selling electricity and focusing on improving the efficiency of electricityconsumption, Yudean Electric Power Marketing provides customers with demand response strategy, energysaving transformation, energy consumption strategy consultation, contract energy management, electric energystorage and other services, and carries out comprehensive energy service projects (smart energy management,carbon asset management, energy trusteeship, energy audit) in vertical (industry) fields, large group enterprisesand large parks (etc.).In 2020, the electricity consumption of the agent users of Yudean Electric Power Marketing was 49.244 billionkWh, with a year-on-year increase of 37.72%. Among them, the agent power of Company’s holding subsidiary is

30.342 billion kwh, accounting for 43.43% of the company's on-grid power.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Reasons for significant changes in relevant data

√ Applicable□ Not applicable

In 2020, the electricity consumption of the agent users of Yudean Electric Power Marketing increased by 37.72%year on year, mainly due to the further expansion of the transaction scale of Guangdong power market in 2020 andthe synchronous growth of the electricity consumption of the agent users.Ⅱ.Main business analysis

1. General

Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.

2. Revenue and cost

(1)Component of Business Income

In RMB

20202019Increase /decrease
AmountProportionAmountProportion
Total operating revenue28,329,065,391100%29,360,155,150100%-3.51%
On Industry
Electric power , Steam sales and labor income27,882,220,30398.42%29,018,275,34698.84%-3.91%
Other446,845,0881.58%341,879,8041.16%30.70%
On products
Sales Electric Power27,651,253,49697.61%28,811,365,63498.13%-4.03%
Labor income102,026,2590.36%69,773,6430.24%46.22%
Steam income128,940,5480.46%137,136,0690.47%-5.98%
Comprehensive utilization of fly ash363,312,3181.28%270,692,9610.92%34.22%
Sales material income2,283,5460.01%2,246,4720.01%1.65%
Lease revenue26,513,0950.09%25,092,3880.08%5.66%
Other54,736,1290.19%43,847,9830.15%24.83%
Area
Guangdong28,256,809,63699.74%29,299,674,02299.79%-3.56%
Yunnan72,255,7550.26%60,481,1280.21%19.47%

(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profitwith Profit over 10%

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

√ Applicable □Not applicable

The Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No.15-Listed Companies Engaged in Power-related Business

In RMB

TurnoverOperation costGross profit rate(%)Increase/decrease of revenue in the same period of the previous year(%)Increase/decrease of business cost over the same period of previous year (%)Increase/decrease of gross profit rate over the same period of the previous year (%)
On Industry
Sales Electric Power27,651,253,49622,282,338,00619.42%-4.03%-8.32%3.77%
Area
Guangdong28,256,809,63622,410,370,49220.69%-3.56%-8.23%4.04%

Reasons for great changes in related financial indicators

□ Applicable √Not applicable

(3)Whether the Company’s Physical Sales Income Exceeded Service Income

√ Yes □ No

ClassificationItemsUnit20202019Changes
Electric power, thermal production and supplySales volumeBillion kwh698.59711.75-1.85%
ProductionBillion kwh737.51752.83-2.03%

Explanation for a year-on –year change of over 30%

□ Applicable √Not applicable

(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period

√ Applicable □Not applicable

In the reporting period, China Southern Power Grid was our No.1 client, Its sales of 27.651 billion yuantaking up approximately 97.61% of annual sales. Company and company’s holding subsidiaries had signed aPower Purchase Agreement with China Southern Power Grid and its holding subsidiaries in accordance to relatedprovisions. By the end of the reporting period, the agreement had been executed rightfully.

(5)Component of business cost

Industry classification

In RMB

IndustryItems20202019Increase/Decrease

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Amount

AmountProportion in the operating costs (%)AmountProportion in the operating costs (%)
Electric power, thermal production and supplyFuel cost15,978,673,23471.10%17,602,834,15571.90%-9.23%
Electric power, thermal production and supplyDepreciation expense3,298,603,37814.68%3,676,925,68615.02%-10.29%
Electric power, thermal production and supplyLabor cost1,301,310,4475.79%1,445,633,7635.91%-9.98%
Electric power, thermal production and supplyOther1,893,689,4428.43%1,755,310,2687.17%7.88%

Note

The Company is in power sector and mainly engaged in power generation at present. The cost is composed offuel cost, depreciation expenses, labour cost and other expenses. Fuel cost accounts for about 71.10% of total cost.Mainly affected by the fall of fuel prices, the fuel cost decreased year on year. Due to accelerated depreciationcaused by the decommissioning of Sha Jiao A unit, full depreciation of Huizhou natural gas phase I and 1#Generator Unit of Guangqian company in 2019, and the production of Huizhou Natural Gas Phase II, Qujie WindPower and Leizhou Wind Power, In 2020,the depreciation expenses decreased by 10.29% year on year.

(6)Whether Changes Occurred in Consolidation Scope in the Report Period

√Yes □No

NameBusiness placeRegistered addressNatureRegistered capitalProportion (%)Acquired
Guangdong Yudean Dayawan Comprehensive Energy Co., Ltd.Huizhou,GuangdongHuizhou,GuangdongElectric Power22,000,00080 %Invested
Guangdong Yudean Qiming Energy Co., Ltd.Shenzhen, GuangdongShenzhen, GuangdongElectric Power20,000,000100 %Invested
Shenzhen Huaguoquan Electric Service Co., Ltd.Shenzhen, GuangdongShenzhen, GuangdongRent2,650,000100 %Merger of non-identical enterprises

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Shaoguan NanxiongYuefeng New EnergyCo., Ltd.

Shaoguan Nanxiong Yuefeng New Energy Co., Ltd.Shaoguan, GuangdongShaoguan, GuangdongElectric Power5,000,000100 %Invested

(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the Company’sReport Period

□ Applicable √Not applicable

(8)Situation of Main Customers and Main Supplier

Information of the Company’s top 5 sales customers

Total sales amount to top 5 customers (RMB)28,172,626,485
Proportion of sales to top 5 customers in the annual sales(%)99.45%
Proportion of the sales volume to the top five customers in the total sales to the related parties in the year1.41%

Information of the Company’s top 5 customers

NoNameAmount(RMB)Proportion
1GPGC27,651,253,49697.61%
2Guangdong Energy Group Co., Ltd.399,973,1281.41%
3Huizhou Yuxin Chemical Co., Ltd.50,330,0060.18%
4Huizhou Huiling Chemical Co., Ltd.44,709,8150.16%
5Huizhou Dayawan Petrochemical Power Thermal Co., Ltd.26,360,0400.09%
Total--28,172,626,48599.45%

Other explanation :

√Applicable □Not applicable

Guangdong Energy Group Co., Ltd is the controlling shareholder of the Company, which is a connectedrelationship with the Company.Principal suppliers

Total purchase of top 5 Suppliers(RMB)21,078,521,309
Percentage of total purchase of top 5 suppliers In total annual purchase(%)77.13%
Proportion of purchase amount from the top 5 suppliers in the total purchase amount from the related parties in the year49.92%

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Information about the top 5 suppliers

No

NoNameAmount(RMB)Proportion
1Guangdong Energy Group Co., Ltd.13,451,651,89346.46%
2China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd.3,970,242,39014.53%
3Guangdong Dapeng ING Co., Ltd1,884,561,2526.51%
4Guangdong Zhujiang Investment Electric Fuel Co., Ltd.934,683,8003.23%
5China Energy Construction Group, Guangdong Thermal Power Engineering Co., Ltd.765,296,4782.64%
Total--17,555,549,43060.63%

Other explanation :

√ Applicable □Not applicable

Guangdong Energy Group Co., Ltd is the controlling shareholder of the Company, which is a connectedrelationship with the Company.

3.Expenses

In RMB

20202019Increase/Decrease(%)Notes
Sale expenses49,214,51443,788,76212.39%Mainly due to the company's added full-time sales staff and increased business costs caused by the deepening of electricity market.
Administration expenses835,927,395874,640,868-4.43%
Financial expenses1,108,522,0641,230,315,841-9.90%
R & Development expenses274,579,7169,703,6022,729.67%It is mainly caused by the increase of R&D investment and improvement of R&D cost collection management of the company and its subordinate units.

4.R& D Expenses

√ Applicable □Not applicable

NoProject company nameMain Project nameProject progressTarget and influence
1GuangdongResearch onCompletedJudge the explosion probability of coal pulverizing system by

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Red BayPowerGenerationCo., Ltd.

Red Bay Power Generation Co., Ltd.explosion-proof technology and engineering demonstration of direct-blown coal pulverizing system based on the need of increasing high volatile coal blendingoperating conditions, study the operation control technology of steam inerting system, and develop the automatic operation control system, including the operation control strategy of steam inerting system under the working conditions of starting and stopping grinding, coal feeder cut-off, abnormal increase of outlet temperature of coal mill, spontaneous combustion of powder pipe, etc. Research on the control technology of coal mill operation parameters after installing steam inerting system, including the high and low limits of safe coal mill outlet temperature control, optimization of air-coal ratio of coal mill, etc., to prevent powder accumulation in powder pipe and spontaneous combustion of pulverized coal. The above research and renovation can effectively prevent the deflagration of the pulverizing system and improve the safety of the coal pulverizing system.
2Guangdong Red Bay Power Generation Co., Ltd.Application and research of advanced control technology based on predictive control theory in coordinated control system of large thermal power generating unitsCompletedThere are some difficult problems in No.3 unit of our factory, such as poor load regulation performance, poor operation stability, large fluctuation of main steam temperature and reheat steam temperature under variable load conditions, and deviation of main steam pressure up to 1MPa-1.8MPa, which sometimes leads to more AGC assessment of units. No. 3 unit cannot meet the requirements of two detailed rules: Implementation Rules for Grid-connected Operation Management of Southern Power Plants (2017 Edition) and Implementation Rules for Auxiliary Service Management of Southern Power Plants (2017 Edition). After the implementation of advanced control system, the performance index of the units has been improved obviously, and it has strong competitiveness in the secondary modulation market
3Guangdong Yudean Jinghai Power Generation Co., Ltd.Research on AGC control optimization of Jinghai Power Generation Company based on auxiliary modulation market of Southern Power GridCompletedOn the premise of meeting the assessment indexes of "Two Rules" in 2017 edition, improve the response characteristics of the unit and the comprehensive modulation performance index K of the unit under the modulation auxiliary market environment.
4Guangdong Yudean Jinghai Power Generation Co., Ltd.Development of frequency converter decoupling control technology for condensate pump of MW units in Jinghai Power GenerationCompletedImprove the safety and stability of the frequency converter, and reduce the equipment fault caused by auxiliary equipment failure.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Company

Company

5Guangdong Energy Maoming Thermal Power Plant Co., LtdResearch and application of vacuum system and high capacity heating technology of unitCompleted1. Renovation of vacuum system: improve vacuum degree of condenser by using the characteristics of low limit pressure and strong suction capacity of Roots water ring vacuum pump unit. Meanwhile, using the energy saving advantage that the energy consumption of Roots water ring vacuum pump unit is only 35% of that of water ring vacuum pump unit under the same pumping condition, the auxiliary power is greatly saved by using Roots vacuum pump unit instead of water ring vacuum pump, thus achieving the purpose of energy saving. 2. High-capacity heating technology research and application research: Low-pressure heating is changed into direct desuperheating and decompression heating with main steam under low load conditions, specifically, a desuperheating and decompression device is installed in front of the mixer to supply heat to the outside in parallel with the existing mixer. Medium-pressure heating is changed to direct desuperheating and decompression of main steam under low load condition, specifically, a desuperheating and decompression device is installed in front of the mixer to supply heat to the outside in parallel with the existing mixer. The heating pipes after temperature and pressure reduction can still be the existing heating pipes. After the implementation of the scheme, the heating capacity is not affected by electric load, and the flexibility, reliability and safety of heating are greatly improved.
6Shajiao A Power PlantResearch and application of shore power system technology for Shajiao A Power Plant WharfIn processAfter research, formulate the construction plan, which meets the requirements of Guangdong Energy Group Wharf Shore Power Reconstruction Plan, Review Opinions on Research Report of Feasibility Study Project of Shore Power Construction Planning of Guangdong Energy Group Wharf and Dongguan Port and Shipping Bureau, build the ship shore power system and put it into use.
7Shajiao A Power PlantResearch on raising reheat steam temperature of 300MW unit under low nitrogen combustion conditionIn processThe reheat steam temperature of 300MW unit boiler increases by about 8-15°C, and the corresponding coal consumption for power supply decreases by 0.4-0.8 g/kwh; Combustibles in fly ash are reduced by 1%-2%, and the corresponding coal consumption for power supply is reduced by 0.3-0.6g/kwh; With an annual power generation of 1.2 billion kWh of a 300MW unit, it can save about 1200t of standard coal annually, and the unit price of standard coal is calculated as RMB 700/t, so the annual economic benefit is about RMB 840,000. After optimization and adjustment, the concentration of NOx and SO2 is reduced by about 10%, which can save the cost of denitration and desulfurization by about RMB 600,000 per year, and reduce the emission of pollutants and the impact on the environment.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

8Guangdong Huizhou Pinghai Power Generation Plant Co., Ltd.Development and application of network security reinforcement technology for distributed control system (DCS) of 1000MW unitsCompletedCombined with the characteristics of OVATION system, establish an industrial firewall in DCS system to block the safety; Realize the deep protection of the system from the host to the system boundary; Adopt domestic independent design for safety equipment and establish "white environment" system.
9Zhanjiang Zhongyue Energy Co., Ltd.
In processBy integrating the production management system and the personnel management system, reduce the repetitive work of each management system, make the personnel management orderly and improve the management level; Through the real-time monitoring and recording of the activity route of the factory personnel, realize the effective management and control of the factory personnel, and improve the Company's security management level; Effectively control the access of important prevention and control areas, improve the level of work safety, and reduce the overall probability of personal casualty accidents.
10Zhanjiang Zhongyue Energy Co., Ltd.Research and application of intelligent patrol inspection for coal transportation trestleIn processRealize all-line, omni-directional and fully autonomous intelligent inspection management of coal transportation trestle, realize unmanned inspection and visual management of production site, improve the safety of coal transportation system operation, and avoid all safety accidents and losses caused by incomplete and unquantified manual inspection and strong dependence on personnel quality. The intelligent operation and maintenance mode of production site based on robot can effectively promote the intelligent management and operation of power plants.
11Guangdong Dapu Power Generation Co., Ltd.Research and application of wastewater recycling and zero emission process in power plantIn processAchieve zero discharge of wastewater and save water resources.
12Shenzhen Guangqian Electric Power Co., Ltd.Improvement research and application of compressor rotor of M701F3 heavy-duty gas turbineCompletedEnsure the safe and reliable operation of the unit and fundamentally improve its corrosion resistance; Upgrade the size of the screw thread of the pull rod bolt and reduce the stress of the key parts; Perform sand blasting on the threaded part of the pull rod bolt to improve its strength.
13Shenzhen Guangqian Electric Power Co., Ltd.Research and application of on-line monitoring of denitration CEMS and ammonia escape system for waste heatCompletedA denitration CEMS monitoring and operating room with containers as carriers is built, which is conducive to the maintenance of daily work, facilitates the maintenance and overhaul of existing heat tracing pipelines and instruments, and conforms to relevant environmental protection specifications.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

boiler of gas-steamcombined cycle unit

boiler of gas-steam combined cycle unit
14Guangdong Huizhou Natural Gas Power Generation Co., Ltd.Structural strength analysis and life evaluation of key components of M701F gas turbine compressor circumferential tie rod rotorCompletedAchieve structural strength analysis and life assessment of key components of M701F gas turbine compressor circumferential tie rod rotor.
15Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.Research and application of vortex steam seal technology for high and medium pressure bridge of steam turbineCompletedRenovate and replace the steam seal at the bridge part of No.11 steam turbine to effectively reduce the bridge leakage and improve the unit economy.
16Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd.Phase II Development and Implementation Contract of Zhanjiang Wind Power Integrated Management System (TIMSS)CompletedThe implementation of TIMSS includes: home page, procurement management, inventory management, maintenance management, safety management, operation management, asset ledger, administration management and supplier management function modules, which are combined with mobile office to further improve office work efficiency.
17Zhanjiang Electric Power Co., Ltd.Research and application of steam turbine cold end state performance and operation optimization technologyIn processRealize the on-line monitoring and diagnosis of the performance of the cold end system of steam turbine and the application of the operation optimization device, monitor the working state of the cold end system of steam turbine on line, optimize the operation modes such as circulating water pump, inlet and outlet water gate of condenser circulating water, condenser cleanliness, etc., and optimize the equipment maintenance plan according to the deterioration of parameters. After the on-line monitoring, diagnosis and operation optimization devices for the cold end performance of steam turbine are applied, the coal consumption of power supply of the unit can be effectively reduced by more than 0.5g/kWh.
18Guangdong Yudean Qujie Wind Power Generation Co., Ltd.Science and technology service of wind farm intelligent O&M system based on SCADA data analysis in Qujie Wind FarmCompletedPerform intelligent management and evaluation of fan efficiency, intelligent fault pre-diagnosis of key subsystems of fan and early intervention to realize health management.
19Guangdong Wind Power GenerationResearch and application of centralized controlIn processIt has realized the comprehensive real-time monitoring of wind farms, fully grasped the working status, equipment safety and production of wind farm equipment by plates, and possessed the

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Co., Ltd.

Co., Ltd.management platform and early warning model for intelligent wind farmbasic conditions for preventive maintenance through the establishment of early warning model.
20Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd.Research on key application technologies of intensive offshore wind power flexible DC delivery systemIn processPerform research on key application technologies of intensive offshore wind power flexible DC transmission system, based on the purpose of optimizing the overall project investment, put forward a topology scheme suitable for offshore wind power flexible DC transmission system in deep sea and far sea, and verify the scheme by PSCAD simulation platform. Based on the topology scheme of the system, aiming at the characteristics of high coupling of the system, study the resonance of the system, and put forward the corresponding resonance suppression measures.

Situation of Research and Development Input by the Company

20202019Increase/Decrease(%)
Number of Research and Development persons (persons)799357123.81%
Proportion of Research and Development persons10.79%4.83%5.96%
Amount of Research and Development Investment ( Yuan)299,498,62831,216,857859.41%
Proportion of Research and Development Investment of Operation Revenue1.06%0.11%0.95%
Amount of Research and Development Investment Capitalization ( Yuan)24,918,91221,513,25415.83%
Proportion of Capitalization Research and Development Investment of Research and Development Investment8.32%68.92%-60.60%

The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying theBusiness Income Year on Year

√Applicable □ Not applicable

In 2020, the company and its subordinate units actively carried out independent R&D, therefore the number ofR&D projects and the R&D investment increased significantly. At the same time, the company improved thecollection management of R&D expenses, and the amount of R&D investment increased significantly by 859.41%year on year.Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rateand Its Reasonableness

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

√Applicable □ Not applicable

In 2020, the company and its subordinate units actively carried out independent R&D, the number of R&Dprojects and the R&D investment increased significantly. At the same time, the company improved the collectionmanagement of R&D expenses. Therefore, the capitalization rate of R&D investment decreased from 68.92% to

8.32% when the capitalization amount of R&D investment increased steadily by 15.83% and increasedsignificantly by 859.41% year on year.

5.Cash Flow

In RMB

Items

Items20202019Increase/Decrease(%)
Subtotal of cash inflow received from operation activities31,137,993,36333,659,185,010-7.49%
Subtotal of cash outflow received from operation activities24,857,212,19425,386,501,898-2.08%
Net cash flow arising from operating activities6,280,781,1698,272,683,112-24.08%
Subtotal of cash inflow received from investing activities843,016,762360,804,825133.65%
Subtotal of cash outflow for investment activities8,957,199,8005,146,772,30174.04%
Net cash flow arising from investment activities-8,114,183,038-4,785,967,47669.54%
Subtotal cash inflow received from financing activities25,044,386,33715,153,940,48765.27%
Subtotal cash outflow for financing activities22,527,006,53419,131,397,29917.75%
Net cash flow arising from financing activities2,517,379,803-3,977,456,812163.29%
Net increase in cash and cash equivalents683,977,907-490,740,923239.38%

Notes to the year-on-year change of the relevant data

√Applicable □ Not applicable

(1) Cash inflow from investment activities increased by 133.65%, mainly due to the liquidation and disposal ofassets by Yuejia this year.

(2) Cash outflow from investment activities increased by 74.04%, mainly due to the year-on-year increase offixed assets and intangible assets purchased by provincial wind power and marina bay company.

(3) The net cash flow from investment activities increased by 69.54%, mainly due to the increase of cash outflowfrom investment activities.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

(4) The cash inflow from fund-raising activities increased by 65.27%, mainly due to the issuance of 1.5 billioncorporate bonds this year, which resulted in more cash received for borrowing.

(5) The net cash flow from fund-raising activities increased by 163.29%, mainly due to the increased impact ofcash inflow from fund-raising activities.

(6) The net increase of cash and cash equivalents increased by 239.38%, mainly due to the large cash inflowfrom fund-raising activities this year.Notes to the big difference between cash flow from operating activities and net profit in the reporting year

□Applicable √Not applicable

Ⅲ.Analysis of Non-core Business

□Applicable √Not applicable

Ⅳ.Condition of Asset and Liabilities

1.Condition of Asset Causing Significant Change

Indicate whether the Company has adopted the new accounting standards governing revenue and leases since2020 and restated the beginning amounts of relevant financial statement line items in the year.Applicable.

In RMB

End of 2020End of 2019Proportion increase/decreaseNotes to the significant change
AmountProportion in the total assets(%)AmountProportion in the total assets(%)
Monetary fund5,790,946,1176.74%5,081,641,9696.73%0.01%
Accounts receivable4,332,149,0335.04%3,197,690,4644.24%0.80%
Inventories1,589,882,0291.85%1,817,059,2692.41%-0.56%
Investment real estate49,732,6680.06%52,093,6310.07%-0.01%
Long-term equity investment6,687,257,6147.78%6,455,784,5628.55%-0.77%
Fixed assets47,195,233,07954.90%38,555,718,71851.09%3.81%
Construction in process9,153,637,10010.65%10,882,003,84614.42%-3.77%
Short-term loans7,622,427,9168.87%5,904,132,7917.82%1.05%
Long-term loans18,998,555,56822.10%16,587,103,38021.98%0.12%

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

2.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

In RMB

Items

ItemsAmount at year beginningGain/loss on fair value change in the reporting periodCumulative fair value change recorded into equityImpairment provisions in the reporting periodPurchased amount in the reporting periodSold amount in the reporting periodOther changesAmount at year end
Financial assets
4.Other equity instrument Investment3,142,371,373335,980,0822,538,725,39969,736,5603,548,088,015
Available-for-sale financial assets3,142,371,373335,980,0822,538,725,39969,736,5603,548,088,015
Total3,142,371,373335,980,0822,538,725,39969,736,5603,548,088,015
Financial Liability00

Content of other changesDid great change take place in measurement of the principal assets in the reporting period ?

□ Yes √ No

3. Restricted asset rights as of the end of this Reporting Period

(1)Pledge of assets

As of December 31, 2020, the power charge rights of several power generation subsidiaries, were pledged to thebank to obtain long-term loans of 4,193,207,913 yuan, of which: the balance of long-term loans due within oneyear was 298,558,767 (as of December 31, 2019: 4,231,292,593 yuan, were pledged to the bank to obtainlong-term loans of240,907,909 yuan). The borrowings are detailed as follows:

1.As at December 31, 2020, the long-term pledge borrowings of the following subsidiaries were based on theirpower fee charging rights and accounts receivable as pledges:

In RMB

NameDecember 31,2020December 31,2019
Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.1,840,351,0821,976,685,804
Guangdong Yudean Leizhou Power Generation Co., Ltd.224,052,692232,038,267
Guangdong Yudean Qujie Wind Power1,310,860,0001,155,920,000

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Generation Co., Ltd.

Generation Co., Ltd.
Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd.98,565,000121,425,000
Lincang Yudean Energy Co., Ltd.661,000,000676,000,000
Guangdong Yudean Xuwen Wind Power Generation Co., Ltd.58,379,13969,223,522
Total4,193,207,9134,231,292,593

In RMB

NameDecember 31,2020December 31,2019
Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.193,721,167188,255,791
Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd.28,200,00022,860,000
Lincang Yudean Energy Co., Ltd.20,000,00015,000,000
Guangdong Yudean Xuwen Wind Power Generation Co., Ltd.6,366,2196,806,543
Guangdong Yudean Leizhou Power Generation Co., Ltd.7,985,5757,985,575
Guangdong Yudean Qujie Wind Power Generation Co., Ltd.42,285,806-
Total298,558,767240,907,909

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

V.Investment situation

1. General

√ Applicable □ Not applicable

Investment Amount in 2020(RMB)

Investment Amount in 2020(RMB)Investment Amount in 2019(RMB)Change rate
2,337,157,6122,084,276,74012.13%

2.Condition of Acquiring Significant Share Right Investment during the Report Period

√ Applicable □ Not applicable

In RMB

Name of the Company InvestedMain BusinessInvestment WayInvestment AmountShare Proportion %Capital SourcePartnerInvestment HorizonProduct TypeProgress up to Balance Sheet DateRevenue projectionGain or Less or the Current InvestmentWhether to Involve in LawsuitDate of Disclosure(If any)Disclosure Index
Guangdong Wind Generation Co., Ltd.Wind GenerationCapital increase793,881,870100%Self FundsNoLong-termElectric powerDuring the reporting period, the preliminary work or project construction of Zhuhai Jinwan Offshore Wind Power Project, Pingyuan Wind Power Project and Nanxiong Wind Power Project was progressing as planned.3,857,075NoJanuary 26,2019,November 29,2019, April 11,2020, August 28,2020 and December 5,2020Announcement No.:2019-05, 2019-58, 2020-13,2020-45 and 2020-63 Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
GuangdongFinancialCapital512,958,28225%Self FundsGuangdong Energy GroupLong-termFinancialIn normal operation976,185NoAugust 28,2020Announcement No.:2020-48,

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

EnergyFinancialLeasingCo., Ltd.

Energy Financial Leasing Co., Ltd.Leasingincrease(Share Proportion:50%)Chaokang Company(Share Proportion:25 %)LeasingPublished in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
Guangdong Yudean Qujie Wind Power Generation Co., Ltd.Wind Power GenerationCapital increase360,000,000100%Self FundsNoLong-termElectric powerDuring the reporting period, the construction of Zhanjiang Wailuo Offshore Wind Power Project Phase II and Zhanjiang Xinliao Offshore Wind Power Project was progressing normally.193,500,299NoAugust 31,2019,N9ovember 29,2019,October 31,2018Announcement No.:2018-54, 2019-40 and 2019-59 Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
Guangdong Yudean Binhaiwan Energy Co., Ltd.Natural Gas GenerationCapital increase300,000,000100%Self FundsNoLong-termElectric powerDuring the reporting period, the construction of the replacement power supply project at the Ningzhou site in Dongguan was progressing normally.-12,518,863NoApril 11,2020Announcement No.:2020-13.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
Guangdong Electric Industry Fuel Co., Ltd.Coal salesCapital increase100,000,00050%Self FundsGuangdong Energy Group(Share Proportion:50%)Long-termCoal salesIn normal operation74,496,407NoDecember 5,2020Announcement No.:2020-64.Published in China Securities Daily, Securities Times and

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

http//.www.cninfo.com.cn

http//.www.cninfo.com.cn
Shenzhen Capital Group Co., Ltd.InvestmentCapital increase69,736,5603.67%Self FundsState-owned assets Supervision and Administration Commission of Shenzhen Municipal people's Government(shareholding ratio:28.1952%)Long-termVenture CapitalIn normal operation20,290,444NoSeptember 20,2018Announcement No.:2018-50.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
Lincang Yudean Energy Co., Ltd.Hydroelectric GenerationCapital increase63,300,000100%Self FundsNoLong-termElectric powerDuring the reporting period, the construction of the Lincang Dayakou Hydropower Station was progressing as planned.159,602,623NoOctober 13,2020Announcement No.:2020-52.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
Tongdao Yuexin Wind Power Generation Co., Ltd.Wind Power GenerationCapital increase50,000,000100%Self FundsNoLong-termElectric powerDuring the reporting period, the construction of Gaoshan Wind Power Project was progressing as planned.-696,160NoApril 11,2020Announcement No.:2020-13.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
Shenzhen Huaguoquan ElectricElectrical ServicPurchase49,680,900100%Self FundsNoLong-termElectrical ServicIn normal operation-1,017,465NoMay 21,2020Announcement No.:2020-38.Published in

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

ServiceCo., Ltd.

Service Co., Ltd.esesChina Securities Daily, Securities Times and http//.www.cninfo.com.cn
Guangdong Yudean Qiming Energy Co., Ltd.Natural Gas GenerationNew establishment20,000,000100%Self FundsNoLong-termElectric powerDuring the reporting period, the preliminary work of the alternative power supply project at Shenzhen Guangming Plant was progressing as planned.-3,416,166NoNovember 29,2019Announcement No.:2019-58Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
Guangdong Yudean Dayawan Integrated Energy Co., Ltd.Natural Gas GenerationNew establishment17,600,00080%Self FundsHuizhou Dayawan Petrochemical Industry Zone Investment Co., Ltd. (shareholding ratio:20%)Long-termElectric powerDuring the reporting period, the preliminary work of the western comprehensive energy station project in Daya Bay Petrochemical Zone was progressing as planned.-3,732,705NoFebruary 15,2020Announcement No.:2020-13.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
Total----2,337,157,612------------0112,136,428------

3.Situation of the Significant Non-equity Investment Undergoing in the Report Period

□ Applicable √ Not applicable

4.Investment of Financial Asset

(1)Securities investment

√ Applicable □Not applicable

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

In RMB

Securitycategory

Security categorySecurity codeStock Abbreviation:Initial investment costMode of accounting measurementBook value balance at the beginning of the reporting periodChanges in fair value of the this periodCumulative fair value changes in equityPurchase amount in the this periodSale amount in the this periodGain/loss of the reporting periodBook value balance at the end of the reporting periodAccounting itemsSource of the shares
Domestic and foreign stocks000027Shenzhen Energy15,890,628FVM78,246,00013,834,80076,190,17292,080,800Other equity instrument InvestmentSelf funds
Domestic and foreign stocks600642Shenergy235,837,988FVM322,642,373-32,764,02854,040,357289,878,345Other equity instrument InvestmentSelf funds
Domestic and foreign stocks831039NEEQ3,600,000FVM7,182,0004,446,0008,028,00011,628,000Other equity instrument InvestmentSelf funds
Total255,328,616--408,070,373-14,483,228138,258,529000393,587,145----
Disclosure date for the notice of approval by the Board (If any)October 31,2019
Disclosure date for the notice of approval by shareholders’ Meeting (If any)

(2)Investment in Derivatives

□ Applicable √ Not applicable

None

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

5.Application of the raised capital

□ Applicable √ Not applicable

NoneⅥ.Significant Asset and Right Offering

1.Situation of Significant Asset Sale

□ Applicable √ Not applicable

None

2.Situation of Substantial Stake Sale

□ Applicable √ Not applicable

Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies

√ Applicable □ Not applicable

Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company

In RMB

Company Name

Company NameCompany typeSectors engaged inRegistered capitalTotal assetsNet assetsTurnoverOperating profitNet Profit
Guangdong Yudean Jinghai Power Generation Co., Ltd.SubsidiaryPower generation and power station construction.2,919,272,0008,152,803,7432,584,179,8094,859,564,103676,369,130502,484,201
Guangdong Huizhou Natural gas Power Generation Co., Ltd.SubsidiaryPower generation and power station construction.1,499,347,5003,824,947,8921,152,314,3353,928,115,507953,792,971720,089,324
Shenzhen Guangqian Electric Power Co., Ltd.SubsidiaryPower generation and power station construction.1,030,292,5001,837,506,907260,541,0731,711,378,892453,487,011341,192,217
Guangdong Huizhou Pinghai Power Generation Plant Co., Ltd.SubsidiaryPower generation and power station1,370,000,0005,023,438,9931,614,664,1523,243,260,761620,922,357458,659,787

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

construction.

construction.
Guangdong Red Bay Power Generation Co., LtdSubsidiaryPower generation and power station construction.2,749,750,0006,034,891,7111,275,820,2783,655,108,574416,080,617307,093,384
Guangdong Yuejia Electric Power Co., Ltd.SubsidiaryPower generation and power station construction.756,000,000465,983,771244,324,3402,134,294287,230,095283,232,695

Acquirement and disposal of subsidiaries in the Reporting period

√ Applicable □ Not applicable

Company nameWay of acquiring and disposing of subsidiary corporations within the reporting periodImpact on the whole producing operation and performance
Guangdong Yudean Dayawan Integrated Energy Co., Ltd.InvestedDuring the reporting period, Dayawan Comprehensive Energy Project was in the early stage of work and did not start construction.
Guangdong Yudean Qiming Energy Co., Ltd.InvestedDuring the reporting period, Shenzhen Guangming Project was in the early stage of work and did not start construction.
Shenzhen Huaguoquan Electric Service Co., Ltd.M & ANo significant impact.
Shaoguan Nanxiong Yuefeng New Energy Co., Ltd.InvestedDuring the reporting period, Nanxiong Yufeng New Energy Project was in the early stage of work and did not start construction.

Note:

1. During the reporting period, all 11 thermal power business entities achieved profits this year, mainly due to thedecline in coal prices and the strengthening of cost control by the Company. Guangqian Company, Huizhou LNGand other companies with strong profitability for natural gas power generation projects have made a greatercontribution to the company's net profit to its parent.

2. Due to the fierce competition in the power market in Yunnan Province, Lincang Company, a wholly-ownedsubsidiary of the Company, has a low on-grid electricity price superposed with large depreciation cost andfinancial cost burden, and has incurred operating losses for four consecutive years. This year, the impairmentprovision for the operating assets group was RMB 118 million.

3. Investment income of the Company to affiliated companies increased year-on-year. The main reason is that theShipping Company made more impairment provision last year, which led to a large loss of investment income ofthe Shipping Company.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Ⅷ.Special purpose vehicle controlled by the Company

□ Applicable √ Not applicable

Ⅸ.Prospect for future development of the Company

1. The Development Trend of the Industry

Currently, China's power generation industry continues to present a diversified competitive pattern. TheCompany's main power assets are mainly in Guangdong Province, which is with many other power producers andis greatly affected by the power transmission from west to east. China's power production has always beendominated by thermal power. With the rapid development of new and renewable energy sources such as nuclearpower, hydropower, wind power and solar energy in recent ten years, the proportion of thermal power hasdeclined, WHICH has gradually changed from the main power supply to the basic power supply for peakregulation and frequency modulation. In 2020, on behalf of the Chinese government, President Xi Jinping putforward China's "3060" goal in terms of carbon peaking and carbon neutralization. In this environment, in thefuture, the thermal power industry mainly relies on developing large-capacity and high-parameter coal-firedpower and accelerating gas-fired power to optimize its structure, on improving its technical strength to reduceconsumption and increase efficiency, on market to obtain electricity quantity and electricity price, and on finemanagement to reduce costs. Meanwhile, the Company will adhere to the new development concept, continuouslypromote the optimization and adjustment of power supply structure, vigorously develop the construction of newenergy projects, and promote the clean and low-carbon transformation of the Company's energy.

(II) Corporate development strategyAt present, guided by the national energy development strategy, the Company is preparing the "14th Five-YearPlan" in combination with its own condition. In the future, it will focus on energy production and supply, withconsideration of comprehensive energy services, centered by the goals of carbon peaking and carbonneutralization. Based on Guangdong and targeted at the whole country, it will implement the "1+2+3+X" strategy-to build a first-class green low-carbon power listed company, coordinate safety and development, optimize andstrengthen the coal power, gas power and biomass power generation business, and vigorously develop new energy,energy storage, hydrogen energy and land park development. It will fully promote the leap-forward developmentof new energy; Grasp the window phase of thermal power development and accelerate the development andconstruction of key projects; Explore the distribution of multi-energy joint supply project of "integration of sourcenetwork, load and storage", promote the integrated development of "integration of wind, light and fire hydrogenstorage", and build an ecological and civilized power generation enterprise.

(III) Production and operation plansIn 2021, the company's consolidated statement has a budget target value of 78.469 billion kilowatt hours ofon-grid electricity, which is 12.32% higher than the actual on-grid power in 2020; The budgetary target value ofthe main business revenue is RMB 29.624 billion, and an increase of 1.743 million yuan compared to the actualamount of main business operating revenue of RMB 27.881 billion; the budgetary value for the full-year plannedinvestment is RMB 2.29 billion, a decrease of 364 million yuan over the actual completed investment of RMB

2.654 billion in 2020.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

(Note: The above operating plan does not represent the company's profit forecast for 2021, whether it can beachieved depending on various factors such as macro economy, industrial policy and changes in the electricitymarket, thus there is considerable uncertainty, and investors should pay special attention to it.)

(VI) Possible risksFirstly, novel coronavirus pneumonia and external environment are still uncertain. The price of coal gas ishovering at high level, and the downward pressure of electricity price still consists. The gap of new energysubsidies receivable is gradually expanding, which may result in problems concerning the operation of Companythat can not be ignored.Secondly, the production safety situation is complex and severe, there are still many illegal operations, and thelevel of safety management is uneven.Thirdly, the comprehensive utilization hours of units are decreasing year by year, the coal consumption level ofcoal machinery is high, and the operation situation is under pressure for a long time.Fourthly, thermal power is changing from the main power supply to the basic power supply of peak regulation andfrequency modulation, and the development space of coal power is limited. The development layout of newenergy projects is weak, and there are not enough high-quality projects in reserve, which puts forward higherrequirements for the company to vigorously develop clean energy.

(V) Countermeasures

Firstly, firmly push forward the transformation and upgrading of power supply structure, and strive to achievegreater breakthroughs in structural adjustment. Company will vigorously promote the integration anddevelopment of the Company's "wind, light and fire hydrogen storage". Strive for development opportunities andaccelerate the progress of key energy projects. Solidly promote the construction of Ningzhou Alternative PowerProject, Huadu Thermal Power Project, Yangjiang Shaba, Wailuo Phase II, Xinliao Offshore Wind Power Project,Guangxi Wuxuan, Tongdao Daogaoshan and Xupu Taiyangshan Onshore Wind Power projects, and ensure thecompletion of the annual project investment and construction plan on schedule. Increase investment anddevelopment of clean energy and project reserve, and accelerate the preliminary work of Shenzhen GuangmingGas and Power Project, Daya Bay Integrated Energy Station, Zhaoqing Yong'an Natural Gas Thermal PowerProject and Yangjiang Qingzhou Offshore Wind Power Project. Actively build distributed energy sources withmultiple combined supply of cold, heat, electricity and gas; Explore the infrastructure construction such aselectricity exchange, charging piles and energy storage and the development and utilization of hydrogen energy.Secondly, deepen the drive of reform and innovation to improve the development quality of listed companies.Profoundly develop benchmarking world-class management promotion actions, through continuous constructionand optimization of the benchmarking management system, run the benchmarking through the whole process ofenterprise decision-making and operation, and enhance the core competitiveness of the Company. Focus on theimplementation of innovation-driven development strategy, and make greater progress in consolidating scientificand technological achievements and building digital energy and smart energy. Deploy basic and forward-lookingtechnology research in the fields of energy security, smart systems and efficient fuel utilization in advance.Actively comply with the power market reform, continuously improve the power marketing management,vigorously explore the power market, and build an integrated platform for production and marketing of gain

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

services and a situational awareness decision-making platform for the operating environment of power enterprises.Thirdly, implement the relevant arrangements to promote the reform of mixed ownership; Formulate andimplement a plan to integrate the property rights of managed power generation assets and gradually resolve theproblem of inconsistency between the property rights relationship and the management relationship. Steadily pushforward the reform and innovation of the system and mechanism, improve the system and mechanism suitable forthe high-quality development of listed companies, stimulate the endogenous power and vitality of enterprises,establish and improve the assessment methods for sub-enterprises, and study and build an assessment anddistribution incentive mechanism that integrates incremental incentives, bottom line constraints and fault tolerancemechanisms.Fourthly, continue to strengthen the ability to identify and control risks and strive to prevent and resolve majorrisks. According to the newly revised and implemented Securities Law, Guidelines for the Standardized Operationof Shenzhen Stock Exchange and other laws and regulations, optimize the system and management process,further improve the corporate governance structure, and comprehensively enhance the corporate governancesystem and governance capability. Firmly establish compliance awareness, consolidate a risk control managementsystem based on compliance management, with internal control as a means and comprehensive risk managementas a guide, and effectively prevent listed companies from decision-making risks, operational risks and debt risks.Ⅹ.Particulars about researches, visits and interviews received in this reporting period

1.Particulars about researches, visits and interviews received in this reporting period

□ Applicable √ Not applicable

No reception of research, communication and interview occurred in the period

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

V. Important Events

Ⅰ.Specification of profit distribution of common shares and capitalizing of common reservesFormulation, implementation and adjustment of profit distribution policy of common shares especially cashdividend policy during the reporting period

√Applicable□ Not applicable

The profit distribution policy in the Articles of Association of the company is as follows:

Article 161The company highly valued the investors especially the reasonable investment returns for the small andmedium investors, and the company’s dividend policy is:

(1)The company’s dividend shall be distributed according to the share proportion held by the shareholders.

(2) The company can use cash, stock, cash and stock combination or other means for the distribution ofdividends that allowed by the laws, but shall give the priority to the cash dividends distribution for profitsdistribution. If it meets the conditions required for cash dividends distribution, then the company shall adopt thecash dividends for the profits distribution.

(3) If the net profits attributable to shareholders of the parent company realized by the company in the yearare positive and the cumulative distributable profits in the end of the year are positive, the company shalldistribute dividends.

(4) The profits annually distributed by the company in cash dividends shall be not less than 10% ofdistributable profits realized in the year, and the accumulative profits distributed in cash dividends in the mostrecent three years shall be not less than 30% of the mean distributable profits realized in the most recent threeyears. When the company carries out the profit distribution, the proportion of the cash dividends shall be not lessthan 20% in the profits distribution.

(5) The company can carry out the interim profit distribution.

During the reporting period, the Company strictly implemented the profit distribution policy in accordance withthe relevant provisions of the Articles of Association. From 2018 to 2020, the company's cash dividends accountedfor 66.39%、54.94% and 36.08% of the distributable profits realized in each year respectively. In the future, thecompany will continue to maintain the continuity, rationality and stability of cash dividends and actively repay itsshareholders.

Special explanation on cash dividend policy

Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of AssociationYes
Well-defined and clearly dividend standards and proportionYes
Completed relevant decision-making process and mechanismYes
Independent directors perform duties completely and play a proper roleYes

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Minority shareholders have ample opportunities and theirlegitimate rights and interests are effectively protected

Minority shareholders have ample opportunities and their legitimate rights and interests are effectively protectedYes
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changedDuring the reporting period, the company's cash dividend policy was not adjusted or changed.

Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly threeyears (including the report period)The company’s dividend distribution plan of the year 2020 was: Based on that the total share capital of thecompany is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 1.2 (taxinclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 1.2 (tax inclusive) per 10shares.The company’s dividend distribution plan of the year 2019 was: Based on that the total share capital of thecompany is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 1.2 (taxinclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 1.2 (tax inclusive) per 10shares.The company’s dividend distribution plan of the year 2018 was: Based on that the total share capital of thecompany is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.6 (taxinclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.6 (tax inclusive) per 10shares.Cash dividend in latest three years

In RMB

YearAmount for cash bonus (tax included)Net profit attributable to the over of the parent company in the consolidated financial statementsRatio in net profit attributable to the parent company in the consolidated financial statementsAmount of cash dividends from cash offer to repurchase shares of the fundsProportion of cash dividends from cash offer to repurchase shares of the fundsAmount for cash bonus (Other included)Ratio of the total cash bonus (other ways included) in net profit attributable to common stock shareholders of listed company contained in consolidation statement
2020630,034,078.321,746,280,13236.08%00%630,034,078.3236.08%
2019630,034,078.321,146,767,03354.94%00%630,034,078.3254.94%
2018315,017,039.16474,461,99766.39%00%315,017,039.1666.39%

In the reporting period, both the Company’s profit and the parent company’s retained earnings were positivehowever not cash dividend distribution proposal has been put forward.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

□ Applicable √ Not applicable

II.Profit distribution plan and capitalizing of common reserves plan for the Period

√ Applicable □ Not applicable

Bonus shares distributed at the rate of _(share)for every 10 shares

Bonus shares distributed at the rate of _(share)for every 10 shares0
Dividend distributed at the rate of CNY_ for every 10 shares (with tax inclusive)1.2
Share capital base for the dividend distribution preplan (shares)5,250,283,986
Total cash dividend distributed (with tax inclusive)630,034,078.32
Amount of cash dividend distributed in other way(s) (such as shares repurchased)0
Total amount of cash dividend (including other way(s)630,034,078.32
Profit available for distribution (CNY)2,336,344,455
Proportion of the cash dividend in the total profit available for distribution (%)100%
Particular about cash dividend in the period
If the company’s development is at the growth stage with arrangements of significant capital expenditures, the minimum proportion of cash dividend in the profit distribution should reach 20%.
Details of proposal of profit distribution preplan or share conversion from capital public reserve
In 2020,The company determined 1,109,012,846 yuan as the net profit distribution base for the current year according to the lower of the parent company's statement and the consolidated statement,plus the non-distributed profits of RMB1,615,486,105 in the prior year, thus the upper limit of the distributable profits is RMB2,724,498,951. According to the Articles of Association of the company, draw RMB7110,901,285 for the statutory surplus reserve taking for 10% of net profits, draw RMB277,253,212 for the other surplus reserve taking 25% of the total net profits, then the upper limit of the distributable profits to the shareholders is RMB2,336,344,455. The company's 2020 annual profits distribution plan is: Based on that the number of the company’s total share capital at the end of 2020 is 5,250,283,986 shares, planned that the company will distribute cash dividends of RMB1.2 (tax inclusive) to A-share shareholders and the company will distribute cash dividends of RMB 1.2 (tax inclusive) to B-share shareholders.

III. Commitments to fulfill the situation

1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of thereporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, seniormanagement personnel and other related parities.None

2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in theforecast period, the company has assets or projects meet the original profit forecast made and the reasons

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

explained

□ Applicable √ Not applicable

IV.Particulars about the non-operating occupation of funds by the controlling shareholder

□ Applicable √ Not applicable

No non-operating occupation from controlling shareholders and its related party in the period.V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the QualifiedAuditor’s Report Issued by the CPAs.

□ Applicable √ Not applicable

VI.Explain change of the accounting policy, accounting estimate and measurement methods as comparedwith the financial reporting of last year.

√Applicable □ Not applicable

On July 5, 2017, the Ministry of Finance issued the notice on revising and printing the "accounting standards forBusiness Enterprises No. 14 - Revenue" (CK [2017] No. 22) (hereinafter referred to as the "new revenuestandards"), requiring domestic listed companies to take effect from January 1, 2020.On December 16, 2019, the Ministry of Finance issued the Interim Provisions on accounting treatment of CarbonEmission Trading (CK [2019] No. 22) (hereinafter referred to as "Interim Provisions on carbon emission rights"),requiring key emission enterprises to take effect from January 1, 2020.On June 19, 2020, the Ministry of Finance issued the accounting regulation of coronavirus-related rentreduction(CK[2020] No.10) (hereinafter referred to as the "COVID-19 rent reduction provisions") requiringenterprises to take effect from June 19, 2020 to June 30, 2021.On December 11, 2020, the Ministry of Finance issued the "question and answer on the implementation ofaccounting standards for business enterprises (2020)" to explain the new standards and new policies.Through the deliberation and approval of the 11th meeting of the 9th Board of Directors and the 8th meeting ofthe 9th Board of Supervisors of the company, the company implements the above new revenue standards fromJanuary 1, 2020 in accordance with the provisions of the Ministry of finance. In addition to the above accountingpolicy changes, other unchanged parts are still implemented in accordance with the "accounting standards forbusiness enterprises - Basic Standards" and relevant specific standards issued by the Ministry of Finance in theearly stage, the application guide of accounting standards for business enterprises, the interpretation of accountingstandards for business enterprises and other relevant provisions.The company implements the above new revenue criteria, the Interim Provisions on carbon emissions, the rentreduction provisions of COVID-19 and the accounting standards of enterprises, and has no significant impact onthe company's financial position, operating results and cash flows.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

VII.Explain retrospective restatement due to correction of significant accounting errors in the reportingperiod

□Applicable √ Not applicable

No major accounting errors within reporting period that needs retrospective restatement for the Company in theperiod.VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.

√Applicable □ Not applicable

New Subsidiary Establishment of the Year

Name

NameBusiness placeRegistered addressNatureRegistered capitalProportion (%)Acquired
Guangdong Yudean Dayawan Integrated Energy Co., Ltd.Huizhou ,GuangdongHuizhou ,GuangdongElectric Power22,000,00080 %Invested
Guangdong Yudean Qiming Energy Co., Ltd.Shenzhen ,GuangdongShenzhen ,GuangdongElectric Power20,000,000100 %Invested
Shenzhen Huaguoquan Electric Service Co., Ltd.Shenzhen ,GuangdongShenzhen ,GuangdongRent2,650,000100 %Merger of non-identical enterprises
Shaoguan Nanxiong Yuefeng New Energy Co., Ltd.Shaoguan, GuangdongShaoguan, GuangdongElectric Power5,000,000100 %Invested

IX. Engagement/Disengagement of CPAsCPAs currently engaged

Name of the domestic CPAsPWC Certified Public Accountants (special general partnership)
Remuneration for domestic accounting firm (RMB10,000)359
Continuous life of auditing service for domestic accounting firm5
Name of domestic CPAWang Bin, Li Yanhua
The Continuous Years of Audit Service of Certified Public Accountants of China Certified Public AccountantsWang Bin(5 years),Li Yanhua(2 year)

Has the CPAs been changed in the current period

□ Yes √ No

Description of the CPAs, financial advisers or sponsors engaged for internal control auditing

√ Applicable □Not applicable

In the report year, the Company engaged PWC Certified Public Accountants (special general partnership)as thecertified public accountants and internal control audit body in 2020. The audit remuneration was RMB 3.59million

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report

□Applicable √ Not applicable

XI. Bankruptcy reorganization

□Applicable √ Not applicable

No bankruptcy reorganization for the Company in reporting period.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

XII.Significant lawsuits and arbitrations of the Company

√ Applicable □ Not applicable

Basic situation of lawsuit(arbitration)

Basic situation of lawsuit(arbitration)Lawsuit amount (RMB 10,000)Whether form into estimated liabilitiesProcess of lawsuit(arbitration)Trial results and influences of lawsuit(arbitration)Situation of execution of judgment of lawsuit (arbitration)Disclosure dateDisclosure index
On April 1, 2019, Guangdong Huizhou Pinghai Power Plant Co., Ltd., a holding subsidiary to the Company, received a set of legal documents including the “Notice of Responding to action”, “Subpoena” and “Civil Indictment” from Huizhou Intermediate People's Court of Guangdong Province, involving the case of contract dispute of China Energy Construction Group Guangdong Thermal Power Engineering Co., Ltd suing Pinghai Power Plant on Construction Project, with the case number of No. 363-(2018) Yue Civil Action. The lawsuit claims include: 1. The Pinghai Power Plant is ordered to pay the project amount of RMB 165.,978408 million(principal) and interest of RMB 72.478979 million(temporarily calculated as for the period from May 1, 2011 to October 31, 2018, with the final interest calculated as of the date of actual payment shall be calculated in accordance with the benchmark interest rate of similar loans of the people's bank of China in the same period) to Guangdong Thermal Power; the above principal and interest amount to RMB 238.457387 million; 2. The Pinghai Power Plant is ordered to bear all the litigation costs including the acceptance fee and the appraisal fee.23,845.74NoThe two pre-trial preparation meetings for the case were held in the Intermediate People's Court of Huizhou City Guangdong Province respectively on May 14, 2019 and July 18, 2019. After the both parties reached a settlement agreement, on November 30, 2020, Huizhou Intermediate People's Court ruled that the plaintiff Guangdong Thermal Power Engineering Co., Ltd. was allowed to withdraw the lawsuit.Both parties reach a settlement and confirm that the total settlement price of the project involved is RMB 1,007,858,115, and Party A also needs to pay Party B a fee of RMB 49,648,202.85. The total cost of litigation is RMB 1,122,648.47, with each party bearing 50%. All expenses have been paid.The above matters have no significant impact on the operating results and financial situation of the company in the current period.The decision to withdraw the lawsuit has been executed.April 4,2019Announcement No.:2019-12)Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

On July 8, 2019, Guangdong Huizhou Pinghai Power Plant Co.,Ltd., the company's controlling subsidiary, received a set of legaldocuments such as Summon, Notice of Proof and Notice ofRespondence to Action from the Intermediate People's Court ofHuizhou City, Guangdong Province, which involved the case ofChina Energy Construction Group Guangdong Electric PowerEngineering Bureau Co., Ltd. Pinghai Power PlantConstruction Contract Dispute (case No. (2019) Y13MC No.

163). The lawsuit claims include: 1. Pinghai Power Plant pays

Guangdong Electric Power Engineering Bureau 89.548053million yuan (principal) and interest of 36.526452 million yuan,with the above principal and interest totaling 126.074505 millionyuan; 2. Pinghai Power Plant bears the litigation expenses in thiscase.

On July 8, 2019, Guangdong Huizhou Pinghai Power Plant Co., Ltd., the company's controlling subsidiary, received a set of legal documents such as Summon, Notice of Proof and Notice of Respondence to Action from the Intermediate People's Court of Huizhou City, Guangdong Province, which involved the case of China Energy Construction Group Guangdong Electric Power Engineering Bureau Co., Ltd. Pinghai Power Plant Construction Contract Dispute (case No. (2019) Y13MC No. 163). The lawsuit claims include: 1. Pinghai Power Plant pays Guangdong Electric Power Engineering Bureau 89.548053 million yuan (principal) and interest of 36.526452 million yuan, with the above principal and interest totaling 126.074505 million yuan; 2. Pinghai Power Plant bears the litigation expenses in this case.12,607.45NoThe case was originally scheduled to be heard in Huizhou Intermediate People's Court on August 14, 2019, and was later rescheduled to January 17, 2020 for the first hearing of the first instance. The two parties exchanged evidence and cross-examined, and debated the controversial issues and the focus issues. After the both parties reached a settlement agreement, on November 30, 2020, Huizhou Intermediate People's Court ruled that the plaintiff Guangdong Thermal Power Engineering Co., Ltd. was allowed to withdraw the lawsuit.Both parties reach a settlement and confirm that the total settlement price of the project involved is RMB 345.95 millon , and Party A also needs to pay Party B a fee of RMB 15,524,830.92. The total cost of litigation is RMB436,313.49, with each party bearing 50%. All expenses have been paid.The above matters have no significant impact on the operating results and financial situation of the company in the current period.The decision to withdraw the lawsuit has been executed.July 11,2019Announcement No.:2019-29)Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

XIII.Situation of Punishment and Rectification

□Applicable √ Not applicable

No penalty and rectification for the Company in reporting period.XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers

□Applicable √ Not applicable

XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan orOther Employee Incentive Measures

□Applicable √ Not applicable

During the reporting period, the company has no stock incentive plan, employee stock ownership plan or otheremployee incentives that have not been implemented.XVI.Material related transactions

1. Related transactions in connection with daily operation

□Applicable √ Not applicable

None

2. Related-party transactions arising from asset acquisition or sold

□Applicable √ Not applicable

No related transactions by assets acquisition and sold for the Company in reporting period.

3. Related-party transitions with joint investments

□Applicable √ Not applicable

No main related transactions of joint investment outside for the Company in reporting period.

4. Credits and liabilities with related parties

□Applicable √ Not applicable

None

5. Other significant related-party transactions

√ Applicable □ Not applicable

(1)2020 daily related transactions were carried out after examination and approval by 2020 first provisionalshareholders' general meeting. Refer to VIII. Relationship between related parties and the transactions betweenthem of the Financial Report Notes of this report for details.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

(2) The Company signed the Financial Services Framework Agreement with the related party GuangdongEnergy Group Finance Co., Ltd., the main content of which is that the Company and its holding subsidiariesapplied for a comprehensive credit line totaling RMB 22 billion from Guangdong Energy Group Finance Co., Ltd.in 2020, which was reviewed and approved by the First Extraordinary General Meeting of Shareholders in 2020.

(3)In order to ensure the safety of capital supply, broaden financing channels, and relieve capital pressure, theCompany and Guangdong Energy Finance Leasing Co., Ltd. signed the Framework Agreement on FinancialLeasing Cooperation, with the total amount of financing not exceeding RMB 10 billion, which was reviewed andapproved by the First provisional General Meeting of Shareholders in 2020.

(4)In order to effectively protect the property value of power generation equipment and reduce the risk cost, theCompany and its related party Guangdong Energy Property Insurance Self-insurance Co., Ltd. (formerly"Guangdong Yudean Property Insurance Self-insurance Co., Ltd.") signed the Framework Agreement onCooperation in Insurance and Risk Management Services, in which the Captive Insurance Company providedinsurance and risk management services to the Company and its holding subsidiaries, and the total expenseswithin the agreement period did not exceed RMB 400 million, which was reviewed and approved by the Firstprovisional General Meeting of Shareholders of the Company in 2020.

(5)In order to standardize the enterprise's multiple economic reforms, effectively revitalize relevant resourcesand realize the preservation and appreciation of assets, the Company acquired 95% equity of HuaguoquanCompany held by Dongguan Humen Jinfan Industrial Corporation at a price of RMB 47.1969 million, and thepurchase price was finally converted according to the net assets evaluation value of Huaguoquan Company whichwas filed and approved by the competent authority. This matter has been reviewed and approved by the thirteenmeeting of the ninth Board of Directors of the Company.

(6)In order to implement the requirements of deepening the reform of state-owned enterprises and improve thelevel of integration of industry and finance, Guangdong Energy Finance Leasing Co., Ltd. plans in capital increaseand share expansion. The Company will participate in the capital increase and share expansion of the financialleasing company, and acquire 25% of its equity by injecting RMB 512,958,300 into the financial leasing company.After the capital injection, it holds its registered capital of RMB 500 million. The capital injection price isdetermined based on the assessed value of the net assets of the financial leasing company that has been filed andapproved by the competent authorities. This matter has been reviewed and approved by the fourteen meeting ofthe ninth Board of Directors of the Company.

(7)In order to meet the policy needs of national renewable energy development, speed up the construction ofShaba Wind Power Project, strengthen cooperation with international financial organizations, broaden financingchannels and reduce financing costs, the Company provided joint liability guarantee for the loan of RMB 2 billiontransferred by Department of Finance of Guangdong Province to Guangdong Energy Group Co., Ltd. for theShaba Wind Power Project of Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd., and the Companysigned a counter-guarantee contract with Yangjiang Wind Power Company. This matter was reviewed andapproved at the fifth meeting of the ninth Board of Directors of the Company and approved at the secondprovisional General Meeting of Shareholders in 2020.

(8)In order to further deepen the reform of mixed ownership in state-owned enterprises and speed up theimprovement of the corporate governance structure and market-oriented operating mechanism of state-ownedenterprises, the Company and Guangdong Energy Group Co., Ltd. simultaneously increased the capital of RMB200 million to the fuel company according to the equity ratio, which was used for the fuel company to acquire100% equity of environmental protection company, and the rest of the acquisition funds were settled by the fuelcompany itself. This matter has been reviewed and approved by the seventeen meeting of the ninth Board ofDirectors of the Company.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

(9)In order to implement the spirit of the document of State-owned Assets Supervision and AdministrationCommission of the People's Government of Guangdong Province on "reducing management levels and reducinglegal entities", optimize the layout of state-owned capital and improve management efficiency, the Board ofDirectors agreed that Guizhou Yueqian Electric Power Co., Ltd. (hereinafter referred to as "Yueqian Company")should absorb and merge Guangdong Yudean Holding Western Investment Co., Ltd. After the merger is completed,the registered capital of Yueqian Company held by the Company is about RMB 247.6904 million (based on therecorded assets evaluation results and the changes in the net assets of both parties during the transition perioddetermined by extended audit), and the share ratio of Yueqian Company held by the Company is about 13%. Thismatter has been reviewed and approved by the seventeen meeting of the ninth Board of Directors of the Company.

(10)In order to implement the decision-making arrangements of State-owned Assets Supervision andAdministration Commission of the People's Government of Guangdong Province on the reform of mixedownership, and promote the fuel company to improve the market-oriented operating mechanism and achievehigh-quality development, the Company and Guangdong Energy Group Co., Ltd. simultaneously increased capitalby RMB 360 million according to the equity ratio, which was used by the fuel company to acquire thenewly-increased registered capital for the 20% equity of the power generation company, and the rest of thesubscription funds were settled by the fuel company itself. This matter has been reviewed and approved by theeighteen meeting of the ninth Board of Directors of the Company.Website for temporary disclosure of the connected transaction

Announcement

AnnouncementDate of disclosureWebsite for disclosure
Estimates announcement of the Daily Related Party Transactions of 2020January 18,2020http//www.cninfo.com.cn.
Announcement of Related Transactions on Signing of the Financial Services Framework Agreement, Framework Agreement on Financing Leasing Cooperation and Framework Agreement on Cooperation in Insurance and Risk Management ServicesJanuary 18,2020http//www.cninfo.com.cn.
Announcement of Resolutions of the 13th Meeting of the Ninth Board of DirectorsMay 21,2020http//www.cninfo.com.cn.
Announcement on Related transaction in Capital Increase and Share Expansion of Guangdong Energy Finance Leasing Co., Ltd.August 28,2020http//www.cninfo.com.cn.
Announcement on Investing in the Construction of Zhaoqing Dinghu Natural Gas Cogeneration ProjectOctober 13,2020http//www.cninfo.com.cn.
Announcement on Related Transactions of Capital Increase to GuangdongDecember 5,2020http//www.cninfo.com.cn.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Guangdong Electric Power Industry FuelCo., Ltd.

Guangdong Electric Power Industry Fuel Co., Ltd.
Announcement on Related Transactions of of Guizhou Yueqian Electric Power Co., Ltd's Merger of Guangdong Yudean Holdings Western Investment Co., Ltd.December 5,2020http//www.cninfo.com.cn.
Announcement on Related Transactions of Capital Increase to Guangdong Guangdong Electric Power Industry Fuel Co., Ltd.December 25,2020http//www.cninfo.com.cn.

XVII.Particulars about significant contracts and their fulfillment

1. Particulars about trusteeship, contract and lease

(1) Trusteeship

√ Applicable □Not applicable

NoteAccording to the instructions of Energy Group on undertaking to perform related matters, in order to avoidhorizontal competition and fulfill the commitments of related horizontal competition, the Company and EnergyGroup have signed the Equity Trust Agreement, which entrusts the rights of shareholders of the Company withinthe trust scope of Energy Group to the Company except for the rights of ownership, income and disposition. Theexpected trust fee is 2.45 million/year. The complete report is available as Announcement No.2018-04 with ChinaSecurities Journal, Securities Time and at www.cninfo.com.cn dated January 13,2018.Project that bring profit and losses to the company of more than 10% of the company's total profit in the reportingperiod. √□Applicable √ Not applicableNo gains or losses to the Company from projects that reached over 10% in total profit of the Company inreporting period

(2) Contract

□ Applicable √ Not applicable

No any contract for the Company in the reporting period.

(3) Lease

√ Applicable □Not applicable

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Note :

As a lessee, The Company rented houses ,Yangjiang Port and billboards from Yudean Real Estate Company, andthe rental fee incurred this year was RMB4,406,829;As a lessor, the Company leased the houses to Yudean Property Company ,Yudean Shipping Company ,Shajiao APower Plant and Qujiang New Energy . the rental income for this year was confirmed to be RMB1,691,072;The parent company of the Company, as a leassor, leases the houses and parking spaces to units and individualssuch as Guangdong Electric Power Communication and Information Company and Guangdong Electric PowerDispatching Center. The rental income for this year was confirmed to be RMB730,001..Project that bring profit and losses to the company of more than 10% of the company's total profit in the reportingperiod.

□Applicable √ Not applicable

There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period.

2.Guarantees

√Applicable □ Not applicable

(1)Guarantees

In RMB10,000

Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)

Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Name of the CompanyRelevant disclosure date/No. of the guaranteed amountAmount of GuaranteeDate of happening (Date of signing agreement)Actual mount of guaranteeGuarantee typeGuarantee termComplete implementation or notGuarantee for associated parties (Yes or no)
Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd.December 19,20074,350November 30,20071,160Guaranteeing of joint liabilities.15 yearsNoNo
Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd.May 27,20099,367June 22,20094,147Guaranteeing of joint liabilities.18 yearsNoNo
Yunnan Baoshan Binlangjiang Hydroelectricity Development Co.,May 27,20097,250May 27,2009725Guaranteeing of joint liabilities.15 yearsNoNo

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Ltd.

Ltd.
Guangdong Energy Group Co.,Ltd.October 29,2020200,000November 19,202032,306Guaranteeing of joint liabilities.23 years and 9 monthsNoYes
Total amount of approved external guarantee in the report period(A1)234,624.4Total actually amount of external guarantee in the report period(A2)30,276
Total amount of approved external guarantee at the end of the report period(A3)425,459.4Total actually amount of external guarantee at the end of the report period(A4)38,338
Guarantee of the company for its subsidiaries
Name of the company guaranteedRelated announcement date and no.Amount of guaranteeDate of happening(date of signing agreement)Actually guarantee amountGuarantee typeGuarantee termComplete implementation or notGuarantee for related party(yes or no)
Zhanjiang Wind Power Generation Co., Ltd.April 29,200918,572October 9,20105,838Guaranteeing of joint liabilities.18 yearsNoNo
Total of guarantee for subsidiaries approved in the period(B1)Total of actual guarantee for subsidiaries in the period (B2)-1,084
Total of guarantee for subsidiaries approved at period-end(B3)141,536Total of actual guarantee for subsidiaries at period-end(B4)5,838
Guarantee of the subsidiaries for the controlling subsidiaries
Name of the Company guaranteedRelevant disclosure date/No. of the guaranteed amountAmount of guaranteeDate of happening (Date o signing agreement)Actual mount of guaranteeGuarantee typeGuarantee termComplete implementation or notGuarantee for associated parties (Yes or no)
The Company’s total guarantee(i.e. total of the first three main items)
Total guarantee quota approved in the reporting period(A1+B1+C1)234,624.4Total amount of guarantee actually incurred in the reporting period(A2+B2+C2)29,192

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Total guarantee quota alreadyapproved at the end of thereporting period(A3+B3+C3)

Total guarantee quota already approved at the end of the reporting period(A3+B3+C3)566,995.4Total balance of the actual guarantee at the end of the reporting period(A4+B4+C4)44,176
The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+B4+C4)%1.61%
Including:
Amount of guarantee for shareholders, actual controller and its related parties (D)32,306
The debts guarantee amount provided for the Guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly(E)6,032
Total guarantee Amount of the abovementioned guarantees(D+E+F)38,338

Description of the guarantee with complex method

(2) Illegal external guarantee

□ Applicable √ Not applicable

No Illegal external guarantee in the report period.

3.Situation of Entrusting Others for Managing Spot Asset

(1)Situation of Entrusted Finance

□ Applicable √ Not applicable

No any Entrusted Finance for the Company in the reporting period..

(2)Situation of Entrusted Loans

□ Applicable √ Not applicable

No any Entrusted loans for the Company in the reporting period..

4.Material contract with daily operation concerned

□Applicable √ Not applicable

5. Other significant contract

□ Applicable √ Not applicable

No other significant contracts for the Company in reporting period.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

XVIII. Social responsibilities

1. Information of performance of social responsibilities

For details, please see the Social Responsibility Report of 2020 disclosed by the company on the same day.http://www.cninfo.com.cn

2.Overview of the annual targeted poverty alleviation

(1)Precise poverty plan

The Company will in depth implement the spirits of the Central work Conference on Poverty Alleviation and theDevelopment and General Secretary Xi Jinping's series of important speeches on poverty alleviation and thedevelopment, We will actively implement the overall arrangements and arrangements of Guangdong province for

targeted poverty alleviation and targeted poverty alleviation, by adhering the concept of innovation, coordination,green, open and shared development, the Company will strengthen the awareness of the overall situation and thesense of responsibility of “The Rich fist leads latter, and realize the common prosperity”, fully utilize theadvantages, carry out the measures of precision poverty alleviation to the village-under-aid, effectively enhancethe local “vitality-making” function, focus on boosting the village’s collective economic strength, developing theenvironment and society and people’s livelihood, thus to increase the income of poverty-alleviation objects, so asto ensure the accomplishment of various project goals and tasks.

1. Soundly do the work of the poverty alleviation by industry development. Formulate the characteristic industrydevelopment for the village-under-aid, implement the “one village, one product” industry promotion action, tapinto the resources advantages, precisely select the dominant industry and the dominant products, support theconstruction of characteristic agricultural bases with high participation of poverty households, support the largeagricultural households and professional cooperatives , small and micro enterprises and so forth agriculturaloperation bodies to speed up the development. Explore the “Internet + Precision Poverty Alleviation” model,strengthen the training of rural E-commerce merchants in poor villages, and encourage farmers to open onlinestores for self-development.

2. Explore the poverty alleviation by shares. Promote the income-increase mode of poor village collectiveeconomy, allow the financial special poverty alleviation funds and other agricultural-related funds to invest infacilities such as agriculture, farming, industrial parks, hydropower, rural tourism and so forth without changingtheir use purposes, and the resulting asset income can be converted to shares quantization to poor villages andpoor households. Cooperate with the local to explore and promote the rights confirmation of land managementwith accordingly converting to shares, guide poverty-stricken households, especially those who are incapable ofworking, to voluntarily transfer the land management rights according to law, and use assets such as land,agricultural facilities, and poverty alleviation funds to price to convert into shares, gaining the operating incomeaccording to shares.

3. Cooperation in training and employment. Oriented towards enhancing the ability of the poor to get employment,assist to carry out the all kinds of policy training, promote the relevant vocational and technical colleges to recruitchildren from poor families, thus to enable them to achieve skills to get out of poverty.

4. Improve the infrastructure. Cooperate with the local to improve the traffic conditions and developmentenvironment in the village-under-aid; support and help key villages-under-aid of the safe drinking water projects;improve farmland water conservancy facilities; improve sewage facilities; improve the garbage collection andtreatment and the cleaning system; improve village cultural and leisure activities, public toilets, landscaping andgreening and other facilities; ensure that the relevant indicators meet the provincial standards.

5. Boost the education culture. In coordination with the local education and cultural departments, the Company

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

will vigorously promote the poverty alleviation through education so that all children in the villages-under-aid canreceive a good education, increase the education subsidies for poor families, ensure that children from poorhouseholds do not drop out of school due to poverty, pay attention to left-behind children, and build left-behindchildren's service centers.

6. Help to improve the environment. Cooperate with the local to raise funds by multi-channels to helpimpoverished households complete the renovation of dilapidated buildings and fully complete the task of assistinglow-income people in housing reconstruction, assisting in the improvement of domestic garbage disposal, sewagetreatment, public toilets and greening and beautification of villages. We will use the entire village as a platform toaccelerate the improvement of production and living conditions of poor villages, and steadily promote theconstruction of beautiful livable villages to realize the new appearance of the old villages.

7. Consolidate the grassroots foundation. Cooperate with the local people to adhere to the Party building andpoverty alleviation both at the same time, with the party building to help the poor and with the poverty alleviationto promote the party building. Organize and hold regular meetings of the "two committees" meetings of thevillages to study the work of aiding the poor; the assigned cadres should assist the "two committees of the village"to do a good job in organizing the masses, serving the masses, uniting the masses, and enhancing the ability of thecadres of the "two committees" of the poor villages to lead the people out of poverty and run to health; It’snecessary to constantly strengthen the development consciousness, market awareness, teaching ideas, teachingmethods and teaching experience of cadres at the grass-root level, mobilizing the grass-root level cadres,strengthen the grass-root organizations, muster up the drive to fight against poverty, and build up “Thenever-leaving Task Force on Poverty Alleviation”, thus to lay the foundation for the sustainable and healthydevelopment of poor villages.

8. Lead multiple parties to participate in. Guide industries, enterprises, social organizations and individuals toparticipate in poverty alleviation, and encourage companies to actively undertake social responsibilities, fullystimulate the market's vitality, and help villages to invest in industries, develop training skills, absorb employment,and help the poor with donated money through various forms such as resource development and joint constructionof villages and enterprises.

9. Strengthen the publicity for poverty alleviation. Adhere to the guidance of public opinion, comprehensivelypublicize and accurately interpret the decision-making and deployment of “Precision poverty alleviation andPrecision poverty reduction”, strengthen the ideological education and guidance, and strengthen the cadres and themasses' centripetal force and cohesion in poverty alleviation work and the development work. Guide the villagersto change the obsolete customs and habits, stimulate the impoverished people to work hard and develop goodenthusiasm, and create a positive atmosphere for self-reliance, hard-working and getting rid of poverty andbecoming better off.

(2)Precise poverty alleviation

During the reporting period, the company actively implemented the overall deployment and arrangement ofGuangdong province's work on "targeted poverty relief and targeted poverty alleviation", actively invest human,material and financial resources in poverty relief work, and its six subsidiaries, namely Yuejiang company,Maoming Power Plant, Zhanjiang company, Dapu company and Zhanjiang wind power company, actively carriedout targeted poverty relief assistance work.I. Counterpart assistance of Yuejiang Company on Mi Xiashui village, Quan’an Town, Nan Xiong City2020 is a decisive year to win the fight against poverty. Under the correct leadership of the Office of theMunicipal Government and the Leading Group for Accurate Poverty Relief in the New Period of Yuejiang PowerGeneration Company, the targeted poverty relief team stationed in Mixiashui Village thoroughly implemented

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

General Secretary Jin Ping's strategic idea on poverty relief and development in the new period, fullyimplemented the relevant work arrangements of the central government, provinces, cities and counties, closelyadhered to the goal of poverty alleviation in 2020, made precise policy, self-pressurized and comprehensivelytackled key problems, and accelerated the implementation progress of poverty alleviation projects to ensurewinning the fight against poverty.(I) Ensure party building and promote poverty alleviation. It continues to thoroughly implement the importantguiding spirit put forward by General Secretary Xi Jinping at the Central Poverty Relief and Development WorkConference, "Well ensuring party building to promote poverty alleviation is an important experience forpoverty-stricken areas to get rid of poverty and become rich", and organically combines the consolidation of ruralgrassroots party organizations with poverty alleviation. Firstly, strengthen the political consciousness. Carry outin-depth study of Xi Jinping's new era of socialism with Chinese characteristics and the spirit of the 19th NationalCongress of the Communist Party of China, as well as the important instructions and comments of GeneralSecretary Xi Jinping, actively adopt the way of "going out" and "inviting in" to carry out the study of partybuilding knowledge, persist in arming the mind with the advanced thoughts of the Party, and promote theory toguide practice. Secondly, strengthen the guidance of party building. Centering on the deployment requirements ofthe central government, provinces, cities and counties on the Party's construction to promote poverty alleviation,and in combination with the actual situation in Nanxiong City and Quan'an Town, efforts are focused on "graspingpoints, expanding areas, improving quality and strengthening capabilities" to give full play to the exemplary andleading role of Party members, and to promote the village collective economy to blossom and grow. Thirdly, payspecial attention to the co-construction of branches. Organize and help the Party branch of the unit to carry out theco-construction work of Party branch in Mixiashui Village, and promote the cohesion and combat effectiveness ofthe village grass-roots party organizations to a higher level.(II) Earnestly well ensure poverty alleviation and consolidation. In strict accordance with the working principle of"poverty alleviation by following policies and undertaking responsibilities", continue to track and understand theproduction and living conditions of poor households in Mixiashui Village, and focus on the basic requirements of"one policy for each household" to well ensure poverty alleviation and consolidation for poor households; Inguiding the Industry development of poor households, it is necessary to give full play to the resource advantagesof Mixiashui Village in a down-to-earth manner, such as enhancing the planting and breeding of rice, peanut andpoultry, and to plan new ideas in combination with the new situation, actively explore and introduce characteristicindustries suitable for large-scale planting and breeding, and give full play to the building function of the industryto ensure that poor households can get rid of poverty stably without returning to poverty.

3. Implement industrial assistance. Firstly, continue to support the leading industries of high-quality rice, andpromote the "company+growers" model. Secondly, push forward the passion fruit industry for poverty relief. In2018, it completed a 10-year land transfer contract of about 260 mu, which promoted the construction of passionfruit planting demonstration base project in Mixiashui Village by Quan'an Economic and Trade DevelopmentCorporation, and led 10 poor households to carry out passion fruit planting, initially forming a "one village, oneproduct" industry with the characteristics of Mixiashui Village. In 2019 and 2020, relying on the passion fruitplanting demonstration base in Mixiashui Village, it actively guided and helped 10 poor households to carry outexcellent passion fruit planting, provided technical guidance to growers on a regular basis, and operated throughthe business model of "company+poor households", performed planting and management according to unifiedstandards, and adopted guaranteed reserve price for acquisition. Thirdly, support the development of breedingprograms, encourage active employment, and implement the policy of "Award instead of Compensation". In 2020,a total of about RMB 100,000 was invested in "Award instead of Compensation". Meanwhile, it implementedsupporting measures matching with Nanxiong City's "Award instead of Compensation", and guided poor

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

households to actively develop production projects such as rice, peanut planting and poultry breeding, andinvested about RMB 65,000 to support production.(IV) Strive to well ensure poverty relief through consumption. Adhere to the consumption poverty relief policyas the fulcrum to increase the villagers and village collective income, rely on the platform of Mixiashui VillageZhongzhi Cooperative to smooth sales channels and to create order agriculture, make good use of the productionand sales model of "company+cooperative+poor households (farmers)" to make bigger and stronger leadingindustries for high-quality rice, passion fruit and peanuts in Mixiashui Village, and realize poverty alleviation byindustry-driven hard work; Explore investing poverty relief funds to purchase a batch of agricultural productsprocessing and packaging equipment, concentrate on purchasing and packaging the agricultural products of poorhouseholds and villagers in Mixiashui Village, further enhance the value of agricultural products, and activelyconnect with individuals, government agencies and social organizations, make efforts to publicize the agriculturalproducts in Mixiashui Village, expand the sales volume of products, and earnestly implement the policy ofpoverty relief by consumption.

5. Promote the construction of new socialist countryside. Taking the opportunity of comprehensively dismantlingdilapidated mud brick houses, it worked hard to ensure the "Three Clearings, Three Demolitions and ThreeRenovations" in Mixiashui Village. A total of 483 dilapidated mud brick houses were demolished, with a total areaof 14,722 square meters; In June 2020, the renovation of the outer facade of houses along the village roads and thebeautification, greening and hardening work along the roads had been completed, and the construction of the fineroute of the new rural demonstration villages along the provincial roads in Mixiashui Village has achieved initialsuccess.

6. Promote infrastructure construction. Firstly, invest RMB 650,000 (including RMB 50,000 donated by YuejiangPower Generation Company in 2019) to organize the implementation of the comprehensive improvement projectof public service infrastructure in Mixiashui Village in 2020. Continue to work on the construction of farmlandwater conservancy projects and consolidate the foundation of agricultural development in Mixiashui Village;Continue to improve the village road hardening project, and build 9 village road meeting lanes based on the actualplan. Secondly, improve and upgrade the office environment of the village party-mass service center. Invest RMB45,000 to renovate the surrounding areas of the party-mass service center; Invest RMB 92,000 to buy officeequipment such as office tables, chairs and computers to improve office conditions; Seek special funds of RMB300,000 from Nanxiong to upgrade the village party-mass service center.

7. Focus on improving village collective income. In 2020, it made an overall investment of RMB 1.14 million(including RMB 320,000 of "6.30" directional donation from Yuejiang Power Generation Company in 2018) toinvest in Sanrong Hakka Sauerkraut Industry Construction Project in Nanxiong City, so as to increase the villagecollective economic income and consolidate and enhance the effectiveness of assistance.

8.Implement the "three guarantees" policy. Fully implement the "three guarantees" policy and fully implement thepoverty relief education guarantee for poor households in accordance with the policy requirements; Solidlypromote the full coverage of medical security, fully implement the medical security policy, and subsidize 41 poorhouseholds to purchase urban and rural medical insurance; Well ensure people's livelihood security, continue toimplement the living materials security project for poor households, and provide appropriate living materialssecurity to all poor households in a timely manner to help poor households improve their lives; Continue toimplement the warm condolence program for poor households, and carry out warm condolence activities to allpoor households when appropriate. In January 2020, Yuejiang Power Generation Company distributed SpringFestival condolences to 41 poor households according to the standard of RMB 200 per household, and investedRMB 0.82 million; In May, 2020, according to the standard of RMB 300 per household, it provided 11poverty-stricken households with a total solatium of RMB 3,300 during the epidemic period.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

II.Assistance provided by Maoming Power Plant to Xinbei Village, Shalang Town, Dianbai District,Maoming CityIn 2020, Maoming Municipal People's Congress Standing Committee, Guangdong Energy Maoming ThermalPower Plant Co., Ltd. and Maoming Branch of Guangfa Bank resolutely implemented the series ofdecision-making arrangements of the CPC Central Committee and the State Council on poverty alleviation battleand the spirit of General Secretary Xi Jinping's series of important speeches on poverty relief work, fullyimplemented the general arrangements of provincial and municipal poverty alleviation work, and made decisiveachievements in poverty alleviation in Xinbei Village, Shalang Town, Dianbai District. By November 2020,Xinbei Village has reached the exit standard from relatively poor villages, with 138 people in 45 poor householdshave all achieved the "Eight Haves" and it has gone through the exit formalities as scheduled. In 2020, the annualper capita disposable income of poor households in Xinbei Village reached RMB 17,819, exceeding the annualper capita disposable income standard of RMB 8,951 for poor households with labor in poverty-stricken villagesin 2020.(I) The leaders attach great importance to, carefully guide, and work together to tackle targeted poverty alleviation

Leaders at all levels have attached great importance to the accurate assistance work in Xinbei Village. DengYongming, deputy director of the Standing Committee of the Municipal People's Congress, has visited the villagethree times for investigation and guidance, and Lin Zhenguang, deputy director in charge, has led the team manytimes to the village for investigation and guidance so as to promote the targeted poverty relief work. The mainleaders of the three assistance units held several joint meetings to discuss and solve major problems and decide onmajor issues. They also organized the responsible persons to visit the linked households to follow up and promotethe aid projects during the Spring Festival, Mid-Autumn Festival and other holidays. At the same time, theprogress of poverty alleviation work, existing problems and the next work plan are regularly reported on amonthly basis.(II) Steady progress, precise implementation, with focus on the implementation of income and poverty alleviationmeasuresXinbei Village has implemented a combination of "short-term, medium-term and long-term" income-increasingprojects, namely, a short-term household vegetable basket project, a medium-term agricultural industrial parkproject and a long-term photovoltaic power generation project.Firstly, implement the family vegetable basket project. The main purpose is to assistance units set up a subsidyfund to provide seedlings and means of production and to assist them in selling agricultural products. The povertyrelief team stationed in the village mobilized and assisted poor households to carry out decentralized planting andbreeding, the assistance units provided baby chicks, and the open-source planting cooperatives assisted in signingthe sales guaranteed recycling agreement and selling agricultural products. From 2017 to 2019, the assistanceunits provided a total of RMB 120,000, and distributed 3,760 Xinyi Huaixiang chickens and feeds to poorhouseholds with work willingness and ability, thus increasing the income of poor households by RMB 130,000. In2020, the assistance unit invested another RMB 28,000 to buy 1,000 Xinyi Huaixiang chickens to distribute to thepoor households with work willingness and ability, and it is estimated that the income of poor households can beincreased by RMB 50,000.Secondly, build an agricultural industrial park. Adopt the mode of "cooperative+base+poor households", run byopen source planting cooperatives, and invest more than RMB 400,000 to build a 50-acre red heart guava plantingbase. The first batch of fruits were picked in May 2020, and by August 2020, the accumulated sales reached about3,500 kg, with a sales income of about RMB 9,000. After pruning and dwarfing in August, the fruits can be picked

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

and marketed in mid-November, and it is planned to sell 15,000 Jin during the year. In the next two years, the fruitoutput will gradually increase, and will increase to 100,000 kg/year, and the profit will be RMB 30,000 per year.Thirdly, build photovoltaic power stations for poverty alleviation. Adopting the model of"company+cooperative+poor households", Maoming Dianbai District Open Source Planting Cooperativecooperated with Maoming Commercial Power Bairizhao Photovoltaic Energy Co., Ltd., and invested the poorhouseholds' financial pooling funds of RMB 999,000 in 2017 to build a 200KW photovoltaic poverty relief powerstation on the roof of the Party-mass Service Center of Xinbei Village Committee, the teaching building roof ofXinbei Primary School and the on back mountain, with a cooperation period of 20 years. The project achievedgrid connection for power generation before July 20, 2018. The annual fixed income is RMB 160,000 from 2018to 2022 and RMB 100,000 from 2023 to 2037. In 2018-2019, poor households with work ability received a totaldividend of RMB 1,200/person.(III) Led by party building, with foundation strengthened, strive to play the role of a fighting fortressWith the construction of the village branch as the core, the first secretary stationed in the village and the povertyrelief team leader took the lead in earnestly studying the spirit of the Nineteenth National Congress of theCommunist Party of China, the Second, Third and Fourth Sessions of the Nineteenth Central Committee, carryingout the theme education activities of "Remain true to the original aspiration, keep in mind the mission", fullymobilizing the enthusiasm of Party members, and actively supporting the daily work of the "two committees" inthe village, the targeted poverty relief work and the new rural construction work. Pay close attention to the teamstyle construction, organize the village two committees team to learn to oppose the "four conducts" requirementand the central eight regulations, and build a "people-oriented, pragmatic and honest" village "two-committee"team. Strengthen the education of purpose, temper the party spirit of the cadres of the "two committees" in thevillage, and make the cadres of the "two committees" in the village have higher prestige among the masses, whichis conducive to the smooth implementation of various tasks.III. Counterpart assistance of Zhanjiang Company on Waiyuan Village, Nanxing Town, Leizhou CityIn 2020, under the unified arrangement and leadership of the company and the poverty relief offices of Zhanjiangand Leizhou, the Company earnestly implemented the relevant regulations of the provinces, cities, counties andtowns. The poverty relief staff worked hard and actively organized human, material and financial resources toinvest in the poverty relief work. The results are as follows:

1. By 2020, all poverty relief projects have been completed (four projects: the first one is photovoltaic powergeneration. The second is to invest in Guangdong Yujie Company; The third is to invest in Leizhou herbivorouspig project; And the fourth is to invest in basic investment companies) and have received generated earnings.

2. RMB 860,000 of unit poverty relief funds have be received, and RMB 860,000 has been used to build ninepublic welfare projects for villagers.

3. According to the unified arrangements of superiors and the actual situation of Waiyuan Village, it assisted thevillage committee in party building. Firstly, strengthen the construction of the branch of the Village Committee,actively mobilize young people to join the Party, and constantly add new forces to the party; Secondly, strengthenthe party building, hold a party member conference on July 1, review the oath of party joining, enhance the partyspirit of party members, and keep in mind the purpose of serving the people; Thirdly, strengthen the education ofParty members, and organize them to carry out education of "two studies, one action, four consciousnesses, fourself-confidences, two maintenance" and "remain true to the original aspiration, keep in mind the mission", so as toimprove their ideological awareness, policy awareness and enthusiasm for serving the masses.

4. It held monthly meetings of village cadres to discuss the implementation of poverty relief work.

5. It followed up completed investment projects to ensure that the income of poor households was in place.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

6. It invested in the construction and completed the construction of activity venues for five villagers' groups.

7. It completed education and poverty relief work assigned by unit leaders.

8. It encouraged young people who newly graduated from school and failed to get admitted by university to workin other places to earn money, to increase the income of poor households.

9. It provided consolation to poor households during the Spring Festival.

10. It checked and tracked the actual implementation of the "three guarantees" for poor households.

11. It assisted village committees in drug control, eliminating evils, rural revitalization and human settlements.

12. Prevention and control of COVID-19. Firstly, well ensure propaganda and ask the village to cooperate andjointly prevent and control the "COVID-19"; Secondly, boil the Chinese herbal medicines for villagers and sendthem to natural villages; Thirdly, set up checkpoints at the entrance of each natural villages to check the physicalcondition of the people entering the village. Fourthly, carry out disinfection in all natural villages. No suspiciouscases were found in Waiyuan Village.As of December 2020, there were 78 poor households with 219 people registered in the Waiyuan villagecommittee, all of whom have been lifted out of poverty.IV. Counterpart assistance of Dapu Company on Xiamu Village, Fenglang Town, Dapu County, Meizhou CityIn 2020, Dapu Power Generation Company continued to send party building instructors and Jianghai Sub-districtOffice of Haizhu District of Guangzhou City to assist Xiamu Village, Fenglang Town, Dapu County, MeizhouCity, and carried out the following aid work:

1. Solidly carry out grass-roots party building: invest RMB 100,000 to build a cultural corridor, and RMB 29,900to build a publicity column for party building and system on the wall in village committees.

2. Actively promote the people's livelihood project: invest RMB 36,000 to carry out the farmland and mountainpond restoration project in Ma'anshan.

3. Carry out activities to celebrate the 98th anniversary of the Party founding, offer condolences to 16 60-year-oldparty members, and organize Party Day activities with the theme of "Celebrating July 1st and Keeping in Mindthe Mission".

4. Invest RMB 5,400 in Spring Festival, to offer condolences to poor party members, old party members andseriously ill party members.

5. Well ensure the prevention and control of COVID-19 and the work of "Three Clearings, Three Demolitions andThree Renovations".

6. By the end of December 2020, after dynamic adjustment, there are currently 67 poor households (including 41poor households with subsistence allowances, 15 poor households with five guarantees and 11 general poorhouseholds) and 138 poor people, all of whom have been lifted out of poverty stably.V. Counterpart assistance of Zhanjiang Wind Power Co., Ltd. on Houhai Village, Xinliao Town, Xuwen CountyZhanjiang Wind Power Company actively responded to the call of the CPC Central Committee, fulfilled thecorporate mission of "being virtuous and capable, benefiting both the nation and the people" and fulfilled its socialresponsibilities. After five years' efforts, by the end of 2020, the two designated poverty relief villages ofZhanjiang Wind Power Company, Shuitou Village, Xuwen County, Zhanjiang City and Houhai Village, XuwenCounty, have all achieved poverty alleviation, and 189 poor households with files and cards have all been liftedout of poverty. Zhanjiang Wind Power Company will always adhere to the people-centered development thought,create clean energy for the people's better life, consolidate the achievements of poverty alleviation with the localpeople, continue to promote the effective connection between comprehensive poverty alleviation and rural

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

revitalization, and contribute to the realization of the goal of "two hundred years" and the Chinese dream of thegreat rejuvenation of the Chinese nation.

(3)Targeted Poverty Alleviation Result

Index

IndexMeasurement unitQuantity / Status
I. General situation————
There into: 1.CapitalIn RMB 10,000259.63
2. Cash suppliesIn RMB 10,0002.82
3. Ecological protection to poverty alleviationperson1,315
II.Breakdown Input————
1. Poverty alleviation by industrial development————
Among them: 1.1 Project type of poverty alleviation by industrial development——Agricultural and forestry industry poverty alleviation
1.2 Number of poverty alleviation projects in industrial developmenta5
1.3 Investment amount of industrial development poverty alleviation projectIn RMB 10,00011.8
1.4 The number of poverty population who had been helped to create a fileperson259
2. Poverty alleviation by transfer employment————
Among them: 2.1 Investment amount of vocational skill trainingIn RMB 10,0000
2.2 Number of people of vocational skill trainingperson0
2.3 Quantity of employment of poverty population who had been helped create a fileperson43
3. Poverty alleviation by relocation————
Thereinto: 3.1 Employment of relocated householdsperson0
4. Educational poverty alleviation————
Among them: 4.1 Investment amount of subsidizing poverty studentsIn RMB 10,00010
4.2 Number of subsidized poverty studentsperson52
4.3 Improving the investment amount for education in poor areasIn RMB 10,0000.3
5. Health poverty alleviation————
Among them: 5.1 Investment amount for medical and health resources in poor areasIn RMB 10,0000
6. Ecological protection poverty alleviation————

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

6.2 Investment amount

6.2 Investment amountIn RMB 10,0000
7. Guarantee of all the details————
Among them: 7.1 Investments on stay-at-home children, women and elderlyIn RMB 10,0000
7.2 Number of stay-at-home children, women and elderly in aidPerson0
7.3 Investments on poor & disable peopleIn RMB 10,0000
7.4 Number of poor & disable people in aidperson0
8. Social poverty alleviation————
Including: 1 Investments on cooperation between West China and East ChinaIn RMB 10,0001.02
8.2 Investments on one-to-one anti-povertyIn RMB 10,00086.63
8.3 Investments from anti-poverty charity fundIn RMB 10,0000
9. Other projects————
Among them: 9.1 Number of projecta10
9.2 Investment amountIn RMB 10,000100.79
9.3 Number of poverty population who had been helped to create a fileperson958
III. Awards (Content and level)————

(4)Subsequent targeted poverty alleviation program

The Company will continue to implement the relevant regulations of the province, city and county on targetedpoverty relief, adapt to local conditions, and well ensure the targeted poverty relief:

(I) Further consolidate the effectiveness of poverty alleviation. Firstly, well ensure system construction, furtherimprove the measures for poverty relief assets management, and ensure the safety and effective management ofpoverty relief assets formed by higher-level poverty relief funds and assistance unit funds. Secondly, seize theincome-increasing projects, ensure the continuous operation of the project, and continuously generate revenue.According to the work requirements of higher authorities, some households under poverty alleviation can beallocated with resources in a prioritized manner to support further development. Thirdly, implement archivesconstruction, further improve paper and electronic archives as required, and keep precious historical materials.(II) Vigorously implement and promote the rural revitalization strategy. According to the new rural planning anddesign scheme, make full efforts in village road hardening, sewage treatment, garbage treatment, centralized watersupply, beautification, greening and lighting, etc., gradually implement the project construction, complete theconstruction tasks with high quality, and further improve the living environment of the whole village. In addition,further plan and formulate village rules and regulations, govern the village by the system, fully utilize the role ofthe system, and promote the construction of rural civilization.(III) Further strengthen and improve the work of party building. Study and implement the spirit of the 19th

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

National Congress of the Communist Party of China, the Second, Third, Fourth and Fifth Plenary Sessions of the19th Central Committee and the spirit of Comrade Xi Jinping's series of important speeches, and implement thespirit of the meeting into the work; Assist in building a team of cadres of the two village committees who areentrepreneurial and efficient for the people; Fully utilize the leading role of the village party branch secretary andlead the whole village to carry out the work well; Further strengthen the education of honesty, build a strongideological defense line against corruption and defection, and put an end to corruption during targeted povertyrelief.

3. Information on environmental protection

Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of EnvironmentalProtection

√ Yes□No

Company orsubsidiaryname

Company or subsidiary nameMain pollutant and specific pollutant nameEmission wayEmission port numberEmission port distribution conditionEmission concentrationImplemented pollutant emission standardsTotal emissionVerified total emissionExcessive emission condition
Shajiao A power plantSmokeConcentrated emission through chimney1Within the factory1.37Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)14.82Not approvedNo
Shajiao A power plantSO2Concentrated emission through chimney1Within the factory19.50Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)226.85Not approvedNo
Shajiao A power plantNOXConcentrated emission through chimney1Within the factory34.71Emission Standard of Air Pollutants for Thermal Power Plants399.50Not approvedNo

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

(GB13223-2011)

(GB13223-2011)
Guangdong Dapu Power Generation Co., Ltd.SmokeConcentrated emission through chimney2Within the factory1.04Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)22.878593No
Guangdong Dapu Power Generation Co., Ltd.SO2Concentrated emission through chimney2Within the factory13.34Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)294.0771447No
Guangdong Dapu Power Generation Co., Ltd.NOXConcentrated emission through chimney2Within the factory32.68Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)720.7121502No
Zhanjiang Zhongyue Energy Co., Ltd.SmokeConcentrated emission through chimney2Within the factory1.12Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)16480No
Zhanjiang Zhongyue Energy Co., Ltd.SO2Concentrated emission through chimney2Within the factory14.70Emission Standard of Air Pollutants for Thermal209.321200No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

PowerPlants(GB13223-2011)

Power Plants (GB13223-2011)
Zhanjiang Zhongyue Energy Co., Ltd.NOXConcentrated emission through chimney2Within the factory26.22Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)373.221587No
Guangdong Shaoguan Yujiang Power Generation Co., Ltd.SmokeConcentrated emission through chimney2Within the factory1.38Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)30.62717.78No
Guangdong Shaoguan Yujiang Power Generation Co., Ltd.SO2Concentrated emission through chimney2Within the factory16.18Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)357.662303.55No
Guangdong Shaoguan Yujiang Power Generation Co., Ltd.NOXConcentrated emission through chimney2Within the factory33.80Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)746.762809.07No
Zhanjiang Electric Power Co.,SmokeConcentrated emission through2Within the factory1Emission Standard of Air3232No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Ltd.

Ltd.chimneyPollutants for Thermal Power Plants (GB13223-2011)
Zhanjiang Electric Power Co., Ltd.SO2Concentrated emission through chimney2Within the factory5Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)382382No
Zhanjiang Electric Power Co., Ltd.NOXConcentrated emission through chimney2Within the factory29Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)737737No
Guangdong Yudean Jinghai Power General Co., Ltd.SmokeConcentrated emission through chimney4Within the factory2.27Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)127.61770No
Guangdong Yudean Jinghai Power General Co., Ltd.SO2Concentrated emission through chimney4Within the factory19.96Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)1119.36502No
GuangdongNOXConcentrate4Within the34.92Emission1958.54687No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

YudeanJinghaiPowerGeneralCo., Ltd.

Yudean Jinghai Power General Co., Ltd.d emission through chimneyfactoryStandard of Air Pollutants for Thermal Power Plants (GB13223-2011)
Guangdong Red Bay Power General Co., ltd.SmokeConcentrated emission through chimney4Within the factory2.38Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)85.43Not approvedNo
Guangdong Red Bay Power General Co., ltd.SO2Concentrated emission through chimney4Within the factory9.05Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)336.34Not approvedNo
Guangdong Red Bay Power General Co., ltd.NOXConcentrated emission through chimney4Within the factory30.79Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)1152.10Not approvedNo
Guangdong Energy Maoming thermal power plant Co., Ltd.SmokeConcentrated emission through chimney2Within the factory1.46Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-32168.12No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

2011)

2011)
Guangdong Energy Maoming thermal power plant Co., Ltd.SO2Concentrated emission through chimney2Within the factory13.73Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)320.64385.51No
Guangdong Energy Maoming thermal power plant Co., Ltd.NOXConcentrated emission through chimney2Within the factory31.12Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)668.69689.58No
Pinghai Power plantSmokeConcentrated emission through chimney2Within the factory1.74Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)63.83700No
Pinghai Power plantSO2Concentrated emission through chimney2Within the factory25.05Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)714.241750No
Pinghai Power plantNOXConcentrated emission through chimney2Within the factory38.76Emission Standard of Air Pollutants for Thermal Power1013.523500No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Plants(GB13223-2011)

Plants (GB13223-2011)
Qianwan LNG Power plantNOXConcentrated emission through chimney3Within the factory10.87Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)180.371312.5No
Huizhou LNG Power PlantNOXConcentrated emission through chimney6Within the factory25.19Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)1244.632033.1No
Bohe CompanySmokeConcentrated emission through chimney3Within the factory0.43Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)0.75872No
Bohe CompanySO2Concentrated emission through chimney3Within the factory4.15Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011)6.53974No
Bohe CompanyNOXConcentrated emission through chimney3Within the factory28.17Emission Standard of Air Pollutants49.691195No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

for ThermalPowerPlants(GB13223-2011)

Prevention and control of pollution facilities construction and operationWithin the report period, the company responds positively to requirements of the newest environmental protectionpolicies, strengthens the operation adjustment of the desulfurization and denitrification system and equipmentmaintenance management, intensifies the transformation of the energy-saving technologies and dust-cleaningequipment, improves the equipment operation efficiency, decrease the smoke and dust discharging concentrationand guarantee compliance of each pollutant emission with the national and local environmental protectionrequirements. In accordance with the national environmental protection plan, each power plant of the companyimplements positively requirements of Coal-fired Power Energy Saving and Emission Reduction Upgrading andTransform Action Plan (2014-2020) and National Energy Administration Comprehensive Division Notice aboutDecomposition and Implementation of Coal-fired Power Energy Saving and Emission Reduction Upgrading andTransform Target Tasks, etc. and promotes the ultra-low emission transformation project. At present, thecompany's subordinate coal-fired units have all completed ultra-low emission transformation work, and theemission concentration of export flue gas pollutants has been greatly reduced on the basis of the originalenvironmental emission standards, reflecting the company's determination to fulfill its social responsibilities andthe responsibility to protect the environment mission.Conditions of environmental impact assessment and other environmental protection administrative licensing ofconstruction projectsThe company's construction projects that have been approved by government agencies have all undergoneenvironmental impact assessments and have obtained other necessary environmental protection administrativelicenses.Emergency plan for emergency environmental incidentsCombining with the Environmental Protection Law of the People's Republic of China and the Opinions of theMinistry of Environmental Protection on Strengthening Environmental Emergency Management Work and otherlaws and regulations on the monitoring of environmental risks, the company’s subordinate power generationenterprises have formulated the Emergency Plan for Emergency Environmental Incidents according to their actualconditions, which has standardized and improved the handling of emergent environmental events from the aspectsof environmental accident risk analysis, emergency command organization and responsibilities, disposalprocedures, and disposal measures, improved the ability to respond to unexpected environmental events, andensured that after an outbreak of an environmental incident, the company can organize emergency rescue work ina timely, orderly and efficient manner to prevent pollution of the surrounding environment, minimize the damageand social harm caused by the incident, maintain social stability, and protect public health and property safety.Environmental self-monitoring programDuring the reporting period, the company’s subordinate power generation companies organized annualenvironmental self-monitoring programs in accordance with the national Administrative Measures on AutomaticMonitoring of Pollution Sources (No. 28 order of State Environmental Protection Administration) and other lawsand regulations, and conducted self-monitoring of the environment in accordance with the monitoring program,

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

and announced its own monitoring results in Guangdong Province's key pollution source regulatory informationplatform and the national pollution source monitoring information and sharing platform. Both the announced rateand completion rate had reached 100%.Other environmental information that should be disclosedNone.Other environmental protection related informationNoneThe Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information DisclosureGuidelines No.15-Listed Companies Engaged in Power-related Business

1. The Company strictly abides by the Environmental Protection Law of the People's Republic of China, AirPollution Prevention Law of the People's Republic of China, Water Pollution Prevention Law of the People'sRepublic of China and Law of the People's Republic of China on Prevention and Control of EnvironmentalPollution by Solid Waste, and the current environmental protection policies and regulations have no impact on theCompany. In 2020, the operating expenses required by the Company's thermal power plants to implementenvironmental protection policies and regulations are mainly to purchase limestone and denitration materials,totaling about RMB 175 million.

2. In 2020, according to the standard, the coal consumption for comprehensive power supply of the Company'sthermal power plants is 301.59 g/kWh of coal, the sulfur dioxide emission performance value is 0.055g/kWh,nitrogen oxide emission performance value is 0.125g/kWh, and soot emission performance value is 0.006g/kWh.Where, the commissioning rate of desulfurization device is 100%, and the average desulfurization efficiency is

99.15%; The average operation rate of denitration device is 99.79%, and the average denitration efficiency is

84.42%; The operation rate of dry dust removal device is 100%, and the average dust removal efficiency is

99.88%.

XIX. Other material events

□Applicable √ Not applicable

No such cases in the reporting period.XX. Material events of subsidiaries

√Applicable □ Not applicable

1.The company's holding subsidiary, Guangdong Yudean Pinghai Power Plant Co., Ltd, received the“Administrative Punishment Decision” issued by the Guangdong Provincial Ocean & Fisheries Bureau onNovember 14, 2016 (No. 019-2016 Yuehai Executive Punishment), and the punishment decision “ordered Pinghaito return the illegally occupied sea areas and restore the sea areas to their original state, and sentenced 10 timesfines to the use fees of sea areas that shall be imposed within the period of that illegally occupied 16.3947 hectares,amounted to RMB 172,144,350.00” for that Pinghai Power Plant carried out the site leveling and bank protectionwork of Pinghai power plant without approval and did the reclamation of 16.3947 hectares and its behaviorviolated the provisions of Article 3 of the Law of the People's Republic of China on the Administration of the Useof Sea areas. Based on the audited net profit of RMB 3.238 billion attributable to the shareholders of the parentcompany in 2015, the amount involved in the above-mentioned administrative penalty affects the net profit

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

attributable to shareholders of the parent company of about 77.4 million-which accounts for 2.39% of the netprofit of the most recently audited period.Pinghai Power Plant disagreed with the punishment measures of the “Administrative Punishment Decision" andapplied for administrative reconsideration to the People's Government of Guangdong Province on January 16,2017 in accordance with Article 6 of the "Administrative Reconsideration Law of the People's Republic of China".On June 16, 2017, the People's Government of Guangdong Province issued a decision on the administrativereconsideration, which stated “According to the provisions of Item 1 of Paragraph 1 of Article 28 of theAdministrative Reconsideration Law of the People's Republic of China, the Administrative Punishment Decision(No. 019-2016 Yuehai Executive Punishment) made by the respondent’s Provincial Department of Ocean andFisheries is maintained.” Pinghai Power Plant disagreed with the aforementioned administrative reconsiderationdecision and filed an administrative litigation to the Guangzhou Maritime Court on July 18, 2017. On December28, 2017, the Guangzhou Maritime Court issued an administrative decision, stated “In accordance with theprovisions of Article 69 of the Administrative Procedure Law of the People's Republic of China, the decision is asfollows: the claim of the plaintiff Guangdong Huizhou Pinghai Power Plant Co., Ltd was rejected”. Pinghai PowerPlant disagreed with the verdict, and lodged an appeal to the Guangdong Provincial Higher People's Court againstthe verdict.On August 23, 2019, the higher people's court of Guangdong province issued the Administrative Judgment (CaseNo.: (2018) YXZ No. 409). The provincial high court held that the original court's judgement on that theAdministrative Penalty Decision No. 019 [2016] issued by the provincial ocean and fishery department and theAdministrative Reconsideration Decision No. 48 [2017] issued by the provincial government were both legal, andthe lawsuit request of Pinghai Power Plant Co., Ltd. was rejected were made based on sufficient grounds andwithout any impropriety. The court upheld the judgment. According to Article 89, Paragraph 1 (a), of theadministrative procedure law of the People's Republic of China, the judgment is as follows: the appeal is rejectedand the original judgment is upheld. The acceptance fee for the second trial case, 100 yuan, shall be borne by theappellant, Guangdong Huizhou Pinghai Power Plant Co., Ltd. The case is final. "On February 20, 2020, Pinghai Power Plant applied to the Supreme People's Court for a retrial of the case, whichwas accepted by the Supreme People's Court. On June 28, 2020, Pinghai Power Plant applied to the SupremeCourt to withdraw its retrial application. On July 6, 2020, the Supreme Court ruled that the retrial applicantGuangdong Huizhou Pinghai Power Plant Co., Ltd. was allowed to withdraw the retrial application.The Company has included the above penalty amount into the non-recurring profit and loss in 2016 according tothe Decision on Administrative Penalty (YHZCF [2016] No.019), which affected the reduction of net profitattributable to shareholders of the parent company by about 77.4 million yuan in 2016. Pinghai Power Plant haspaid the fine according to the judgment. According to the Agreement on Issuance of Shares and Purchase ofAssets signed by Guangdong Energy Group and the Company in 2012, Guangdong Energy Group willcompensate the Company according to the results of the above events and the actual losses caused by theseevents.

2. Guangdong Yudean Pinghai Power General Plant Co., Ltd., a controlling subsidiary of the Company, received

the Decision on Administrative Punishment (YHDCF [2019] No.042-1) issued by Huidong County Oceanic andFishery Bureau on November 13, 2018. The act of illegally occupying 1.2813 hectares of sea area by PinghaiPower Plant to construct a sand barrier violated the provisions of the second paragraph of Article 3 of the Law ofthe People's Republic of China on the Use of Sea Areas and the decision was that "It is ordered to return theillegally occupied sea area, restore the sea area to its original state, and imposed an administrative penalty of RMB11,531,700". Pinghai Power Plant refuses to accept the punishment measures in the Decision on AdministrativePenalty and filed an application for administrative reconsideration with Huidong County People's Government.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

On April 23, 2019, Huidong County People's Government made the Decision on Administrative Reconsiderationto maintain the administrative penalty decision made by Huidong County Oceanic and Fishery Bureau. On April24, 2019, Pinghai Power Plant filed an administrative lawsuit with Guangzhou Maritime Court. The GuangzhouMaritime Court held a hearing on June 12, 2019 and has made no judgment so far.According to the Company's audited net profit attributable to the shareholders of the parent company of 743million yuan in 2017, the amount of the above administrative penalty affects the net profit attributable to theshareholders of the parent company of about 5,189,300 yuan, accounting for about 0.7% of the latest audited netprofit. Pinghai Power Plant refused to accept the punishment measures in the Decision on AdministrativePunishment and filed an application for administrative reconsideration.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

VI. Change of share capital and shareholding of Principal Shareholders

(1) Changes in share capital

1. Changes in share capital

In Shares

Before the changeIncrease/decrease(+,-)After the Change
AmountProportionShare allotmentBonus sharesCapitalization of common reserve fundOtherSubtotalQuantityProportion
I. Share with conditional subscription1,897,968,94636.15%1,1791,897,970,12536.15%
1. State-owned shares
2. State-owned legal person shares1,893,342,62136.06%1,893,342,62136.06%
3.Other domestic shares4,626,3250.09%1,1794,627,5040.09%
Of which:Domestic legal person shares4,620,6660.09%4,620,6660.09%
Domestic natural person shares5,6590%1,1796,8380%
4.Foreign shares
Of which:Foreign legal person shares
Foreign natural person shares
II. Shares with unconditional subscription3,352,315,04063.85%-1,1793,352,313,86163.85%
1.Common shares in RMB2,553,907,04048.64%-1,1792,553,905,86148.64%
2.Foreign shares in domestic market798,408,00015.21%798,408,00015.21%
3.Foreign shares in foreign market
4.Other
III. Total of capital shares5,250,283,986100%5,250,283,986100%

Reasons for share changed

√ Applicable □ Not applicable

On August 14, 2020, Mr. Lin Weifeng, the employee supervisor of the Company, ceased to serve as the employee

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

supervisor of the Company due to work changes, but still served as the Director of the Finance Department ofShajiao A Power Plant, a branch of the Company. As of the disclosure date of his resignation announcement, Mr.Lin Weifeng held 4,716 shares of the Company. According to the relevant provisions of the Listing Rules ofShenzhen Stock Exchange, the supervisors of listed companies shall not transfer the shares held by them withinsix months after their resignations. Therefore, the lock ratio of Mr. Lin Weifeng's holding of 4,716 shares of theCompany increased from 75% to 100%, and the number of restricted shares of the Company also increasedcorrespondingly.Approval of Change of Shares

□Applicable √Not applicable

Ownership transfer of share changes

□Applicable √Not applicable

Progress on any share repurchase:

□ Applicable √ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□ Applicable √ Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon shareholders of Company in latest year and period

□ Applicable √ Not applicable

Other information necessary to disclose for the company or need to disclosed under requirement from securityregulators

□ Applicable √Not applicable

2. Change of shares with limited sales condition

√ Applicable □ Not applicable

In RMB

Shareholder

ShareholderNumber of restricted shares at the beginningNumber of restricted shares in increased this periodNumber of restricted shares released in this periodNumber of restricted shares at the end of the periodReasons for sales restrictionRelease date of sales restriction
Lin Weifeng3,5371,17904,716Change of employee supervisor-
Total3,5371,17904,716----

Ⅱ.Issuing and listing

1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period

□Applicable √Not applicable

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

2.Change of asset and liability structure caused by change of total capital shares and structure

□Applicable √Not applicable

3.About the existing employees’ shares

□Applicable √Not applicable

Ⅲ.Shareholders and actual controlling shareholder

1. Number of shareholders and shareholding

In Shares

Totalnumber ofcommonshareholders at theend of thereportingperiod

Total number of common shareholders at the end of the reporting period90,997Total shareholders at the end of the month from the date of disclosing92,978The total number of preferred shareholders voting rights (if any)(See Notes 8)0Total preferred shareholders at the end of the month from the date of disclosing the annual report(if any)(See Notes 8)0
Particulars about shares held above 5% by shareholders or top ten shareholders
ShareholdersNature of shareholderProportion of shares held(%)Number of shares held at period -endChanges in reporting periodAmount of restricted shares heldAmount of un-restricted shares heldNumber of share pledged/frozen
State of shareAmount
Guangdong Energy Group Co., Ltd.State-owned legal person67.39%3,538,005,2851,893,342,6211,644,662,664
China Securities Finance Co., Ltd.State-owned legal person2.49%130,882,902-17,979,518130,882,902
Guangzhou Development Group Co., Ltd.State-owned legal person2.22%116,693,602116,693,602116,693,602
Guangdong Electric Power Development CorporationState-owned legal person1.80%94,367,34194,367,341
Li ZhuoDomestic Natural person1.16%60,672,41129,048,88860,672,411
Zheng JianxiangDomestic Natural person0.47%24,804,8861,569,98824,804,886

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Harbin Hali Industry Co., Ltd.

Harbin Hali Industry Co., Ltd.Domestic Non-State owned legal person0.40%20,942,945-283,86920,942,945
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUNDOverseas Legal person0.30%15,855,5124,099,01315,855,512
CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTDOverseas Legal person0.29%15,216,066-100,00015,216,066
Harbin Daoli District Charity FoundationDomestic Non-State owned legal person0.26%13,667,4068,90013,667,406
Explanation on associated relationship among the aforesaid shareholdersThe fourth largest shareholder Guangdong Electric Power Development Corporation is the wholly-owned subsidiaries of the largest shareholder Energy Group. These two companies have relationships; whether the other shareholders have relationships or unanimous acting was unknown
Shareholding of top 10 shareholders of unrestricted shares
Name of the shareholderQuantity of unrestricted shares held at the end of the reporting periodShare type
Share typeQuantity
Guangdong Energy Group Co., Ltd.1,644,662,664RMB Common shares1,644,662,664
China Securities Finance Co., Ltd.130,882,902RMB Common shares130,882,902
Guangzhou Development Group Co., Ltd.116,693,602RMB Common shares116,693,602
Guangdong Electric Power Development Corporation94,367,341RMB Common shares94,367,341
Li Zhuo60,672,411RMB Common shares60,672,411
Zheng Jianxiang24,804,886Foreign shares placed in domestic exchange24,804,886
Harbin Hali Industry Co., Ltd.20,942,945RMB Common shares20,942,945
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND15,855,512Foreign shares placed in domestic15,855,512

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

exchange

exchange
CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD15,216,066Foreign shares placed in domestic exchange15,216,066
Harbin Daoli District Charity Foundation13,667,406RMB Common shares13,667,406
Explanation on associated relationship or consistent action among the top 10 shareholders of non-restricted negotiable shares and that between the top 10 shareholders of non-restricted negotiable shares and top 10 shareholdersThe fourth largest shareholder Guangdong Electric Power Development Corporation is the wholly-owned subsidiaries of the largest shareholder Energy Group. These two companies have relationships; whether the other shareholders have relationships or unanimous acting was unknown.
Explanation on shareholders participating in the margin trading business(if any )(See Notes 4)The Fifth largest shareholder Li Zhuo holds 1,270,220 A shares of the Company through A shares ordinary stock account, and holds 359,402,191A shares of the Company through stock account with credit transaction and guarantee. hold60,672,411 shares of the Company's stock totally. The Seventh largest shareholder Harbin Hali Industry Co., Ltd. holds300 A shares of the Company through A shares ordinary stock account, and holds 20,942,645 A shares of the Company through stock account with credit transaction and guarantee, hold 20,942,945 shares of the Company's stock totally. The Tenth largest shareholder Harbin Daoli District Charity Foundation holds16,800 A shares of the Company through A shares ordinary stock account, and holds 13,650,606A shares of the Company through stock account with credit transaction and guarantee, hold 13,667,406 shares of the Company's stock totally.

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-back agreement dealing in reporting period.

□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Companyhave no buy –back agreement dealing in reporting period.

2.Controlling shareholder

Nature of Controlling Shareholders: Local state holdingType of Controlling Shareholders: Legal person

Name of the Controlling shareholderLegal representative/LeaderDate of incorporationOrganization codePrincipal business activities
Guangdong Energy Group Co., Ltd.Li ZhuoxianAugust 3,200191440000730486022GManagement and sales of the electricity investment construction operation management,electricity power(Thermal

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Power),The industry of transportation resourcesenvironmental protection,new source ofenergy electricity investment; investmentplanning and consulting ; informationconsulting service; sales of productionmaterials.

Power), The industry of transportation resources environmental protection,new source of energy electricity investment; investment planning and consulting ; information consulting service; sales of production materials.
The equity of the controlling shareholder in other domestic and foreign listed companies held or partly held by it in the report periodUnknown

Change of the actual controller in the reporting period

□Applicable √Not applicable

No such cases in the Reporting Period.3.Information about the controlling shareholder of the CompanyActual controller nature:Local state owned assets managementActual controller type:Legal person

Name of the controlling shareholderLegal representative/person in chargeDate of establishmentOrganization codePrincipal business activities
State-owned Assets supervision and administration Commission of Guangdong Provincial People’s GovernmentLi ChengJune 26,2004114400007583361658As the special institution directly subordinate to Guangdong Provincial People's Government, performed the obligation of provincial state-asset contributor entrusted by the provincial government.

Changes of the actual controller in the reporting period

□Applicable √Not applicable

No Changes of the actual controller in the reporting periodBlock Diagram of the ownership and control relations between the company and the actual controller

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

The actual controller controls the company by means of trust or managing the assets in other way

□Applicable √Not applicable

4.Particulars about other legal person shareholders with over 10% share held

□Applicable √Not applicable

5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Partyand Other Commitment Subjects

□Applicable √Not applicable

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

VII. Situation of the Preferred Shares

□ Applicable √Not applicable

The Company had no preferred shares in the reporting period.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

VIII Information about convertible corporate bonds

□ Applicable √Not applicable

During the reporting period, the company did not have convertible corporate bonds.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

IX. Information about Directors, Supervisors and Senior ExecutivesI. Change in shares held by directors, supervisors and senior executives

Name

NamePositionsOffice statusSexAgeStarting date of tenureExpiry date of tenureShares held at the year-begin(share)Amount of shares increased at the reporting period(share)Amount of shares decreased at the reporting period(share)Other changes increase/decreaseShares held at the year-end(share)
Wang JinBoard chairmanIn officeMale57June 11,2018
Wang JinDirectorIn officeMale57September 18,2017
Rao SuboDirectorIn officeMale56September 18,2017
Wen LianheDirectorIn officeMale51September 18,20172,8302,830
Chen ZeDirectorIn officeMale52September 18,2017
Li FangjiDirectorIn officeMale53June 28,2018
Zheng YunpengDirectorIn officeMale52June 28,2018
Zheng YunpengGeneral ManagerIn officeMale52June 11,2018
Yan MingDirectorIn officeMale49February 21,2019
Li BaobingDirectorIn officeMale46November 19,2019
Liang PeiluEmployee directorIn officeMale56August 2,2019
Mao QinghanDirectorIn officeMale46August 2,2019
Sha QilinIndependent directorIn officeMale60May 20,2014

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

ShenHongtao

Shen HongtaoIndependent directorIn officeFemale53May 20,2016
Wang XiIndependent directorIn officeMale50May 20,2016
Ma XiaoqianIndependent directorIn officeMale56September 18,2017
Yin ZhongyuIndependent directorIn officeMale51September 18,2017
Zhang DeweiChairman of the Supervisory CommitteeIn officeMale59August 14,2012
Shi YanSupervisorIn officeFemale43November 19,2019
Zhu WeipingIndependent SupervisorIn officeMale63May 20,2014
Jiang JinsuoIndependent SupervisorIn officeMale52May 20,2014
Hu JinpeiEmployee supervisorIn officeMale57December 23,2020
Li QingEmployee supervisorIn officeMale43May 20,2014
Tang YongguangDeputy GMIn officeMale58November 28,2019
Liu WeiDeputy GM, Finance managerIn officeMale41September 18,2017

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Liu Wei

Liu WeiBoard secretaryIn officeMale41October 24,2006
Lin WeifengEmployee supervisorDimissionMale52May 15,2002August 14,20204,7164,716
Li JianwenEmployee supervisorDimissionMale48August 14,2020December 23,2020
Liu HuiDeputy GMDimissionFemale55July 28,2010October 31,2020
Total------------7,5460007,546

II. Change in shares held by directors, supervisors and senior executives

√ Applicable □Not applicable

NamePositionsTypesDateReason
Lin WeifengEmployee supervisorDimissionAugust 14,2020Job change
Li JianwenEmployee supervisorDimissionDecember 23,2020Job change
Liu HuiDeputy GMDimissionOctober 31,2020Retire

III.Posts holdingWork Experience in the past five years of Directors, supervisors and senior Executives in Current officeMr. Wang Jin, born in May 1963. He holds a Bachelor of Engineering from Nanjing Institute of Technology and aMaster of Business Administration from Jinan University. He is now a senior engineer,and currently serves aschairman of Guangdong Electric Power Development Co., Ltd., He once served as director of boiler maintenanceworkshop in Shaoguan Power Plant, director of Engineering Technology Department of Zhuhai Power Plant’sPlanning and Construction Department, deputy director of Zhuhai Power Plant, executive deputy general managerof Guangzhu Power Generation Co., Ltd. and general manager of Zhuhai Power Plant Co., Ltd., general managerand secretary of the Party Committee of Guangdong Zhuhai Jinwan Power Generation Co., Ltd., general managerof Guangzhu Power Generation Co., Ltd., the deputy chief engineer and the manager of the Department ofManagement and the secretary of the Party Branch of Guangdong Energy Group Co., Ltd., and concurrentlyserved as director of Guangdong Electric Power Development Co., Ltd.Mr. Rao Subo, born in May 1964, is bachelor of Engineering of Chongqing University and graduate of the CentralParty School and is a Senior Engineer (Professor Level). He is currently a member of the disciplinary committee,deputy chief engineer and minister of safety supervision and production technology department of GuangdongEnergy Group Co., Ltd., and head of preparation team of Yudean electric power and information technologycenter. He once served as deputy chief engineer of Shaoguan Power Plant, deputy director of the Department ofBiotechnology of Guangdong Electric Power Group Corporation, director of Department of Biotechnology and

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Safety Supervision of Guangdong Yudean Assets Management Co., Ltd., director of Department ofBiotechnology and Safety Supervision, deputy chief engineer of Guangdong Energy Group Co., Ltd., and directorof the Shajiao A Power Plant and party committee secretary, Deputy chief engineer, Secretary of the SafetySupervision and Produce technology Dept, Secretary of the Party Branch and Head of the Information TechnologyCentre Preparatory team of Guangdong Energy Group,Chief safety officer and Vice chief engineer of GuangdongYudean Group, and Head of the Information Technology Centre Preparatory team of Guangdong Yudean ElectricPower .Mr. Wen Lianhe, born in October 1968 and graduated from Harbin Institute of Technology. He is now seniorengineer (professor level) and currently deputy director of Guangdong Energy Group Co., Ltd. He once served asdeputy minister of Biotechnology and Safety Supervision Department of Guangdong Energy Group Co., Ltd.,general manager and party committee secretary of Guangdong Red Bay Power Generation Co., Ltd., Deputy chiefengineer, Minister of strategic Development and Secretary of Party Branch of Energy Group,Vice chiefengineer ,Minister of operating management Dept and Secretary of Party Branch of Energy Group.Mr. Chen Ze, born in January 1969. He holds a bachelor degree from Chongqing University and a doctoral degreein management from Huazhong University of Science and Technology. He is senior economist, corporate counsel(practicing qualifications), and currently serves as the general counsel, secretary of the board of directors, anddirector of legal affairs and capital operation department of Guangdong Energy Group Co., Ltd. He once served asdeputy director of the general department and director of capital operation and legal affairs department ofGuangdong Energy Group Co., Ltd., general manager and party branch secretary of Guangdong Yudean ShippingCo., Ltd.Mr. Li Fangji, born in November 1967, is a senior engineer. He holds a bachelor degree from BeijingInstitute of Water Resources and Electric Power Economics and Management and a master degree in engineeringfrom Tianjin University. He currently serves as Deputy Chief Engineer of Guangdong Energy Group Co., Ltd. andconcurrently serves as Minister of Strategy Development Department and Secretary of Party Branch of EnergyGroup Corporation. He had served as Engineer of Shenzhen Energy Corporation, Assistant to General Managerand Deputy General Manager of Shenzhen Qianwan Electric Power Development Co., Ltd., Assistant to GeneralManager, Chairman of the Labor Union, Deputy General Manager, General Manager, and Secretary of the PartyCommittee of Shenzhen Guangqian Electric Power Co., Ltd., Secretary of Party Committee and General Managerof Guangdong Yudean Jinghai Power Generation Co., Ltd.,Minister of strategy Development Dept and partybranch secretary of Energy Group.

Mr. Zheng Yunpeng, born in October 1968, Bachelor of South China University of Technology and MBA ofJinan University, is a senior engineer. Currently, he is the general manager of Guangdong Electric PowerDevelopment Co., Ltd. He had served as Deputy Minister of Strategy Development Department of GuangdongYudean Asset Management Co., Ltd., Deputy Minister of Strategy Development Department of GuangdongEnergy Group Co., Ltd., Minister of Strategy Development Department of Guangdong Energy Group Co., Ltd.,Secretary of the Party Branch and General Manager of Branch Company of Guangdong Yudean EnvironmentalProtection Engineering Management Company, Factory Director and Secretary of the Party Committee ofHuangpu Power Plant, General Manager of Yuehua Power Generation Company, General Manager and Secretaryof the Party Branch of Guangdong Yudean Natural Gas Co., Ltd.Mr. Yan Ming, born in October 1971, with a bachelor degree of Northeastern Electric Power University, andis a senior engineer. Currently, he is the Minister of the Colligation and Management Department of GuangdongEnergy Group Co., Ltd. He used to be deputy minister of the operation department, deputy minister of the fueldepartment (presided over the overall work), minister of the production and operation department, and deputy

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

general manager of Guangdong Honghaiwan Power Generation Co., Ltd. He had served as Deputy Minister of theoperation and management department of Guangdong Energy Group Co., Ltd and General Manager and Secretaryof the Party Branch of Guangdong Yudean Power Sales Co., Ltd.,Minister of Comprehensive Dept and Secretaryof the Party Branch of Energy Group.

Mr. Li Baobing, born in September 1974, graduated from Xi'an Jiaotong University with a master degree, is asenior economist. Currently he is the Minister of Finance Department and Secretary of the Party Branch ofGuangdong Energy Group Co., Ltd.,He served as Assistant to General Manager of Budget and FinanceDepartment and Director of Asset Management Department of Guangzhou Lingnan International EnterpriseGroup Co., Ltd., Manager of Investment Department and Deputy General Manager of Guangdong Yudean FinanceCo., Ltd., and had concurrently served as General Manager of Shenzhen Tianxin Insurance Brokers Co., Ltd.andVice Minister,Minister and Secretary of the Party Branch of Finance Department of Guangdong Energy Group Co., Ltd.Mr. Liang Peilu, born in October 1964. graduated from correspondence course, bachelor of engineering. Seniorengineer. He is currently the party secretary and director of Shajiao A Power Plant of Guangdong Electric PowerDevelopment Co., Ltd. and the general manager and party branch secretary of Guangdong Yudean BinhaiwanEnergy Co., Ltd. Former positions include turbine maintenance director of Shajiao General Power Plant A,director of health and safety of Shajiao A Power Plant, and deputy director of Shajiao A Power Plant.Mr. Mao Qinghan, born in October 1974, Bachelor of Hunan University and Master of Engineering from SouthChina University of Technology. Engineer. He once served as the secretary and director of the party branch ofXicun Thermal Power Plant in Guangzhou power plant, the deputy general manager of Guangzhou Power Plant,the secretary of the party branch of Guangzhou Power Plant Co., Ltd., the secretary and general manager of theparty branch of Guangzhou Wanglong Thermal Power Co., Ltd., the safety director and general manager of theHealth and Safety Management Department of Guangzhou Development Group Co., Ltd., and the secretary andgeneral manager of the Party Committee of Guangzhou Development Power Group Co., Ltd.Mr. Sha Qilin, born in October 1960. Master of Wuhan Institute of Technology. Associate Professor, practicinglawyer. He is currently a lawyer of Guangdong Nanguo Desai Law Firm, member of the Professional Committeeof Financial and Securities of Guangzhou Lawyers Association, and concurrently an independent director ofGuangdong Electric Power Development Co., Ltd. He was an associate professor of Wuhan Institute ofTechnology (now Wuhan University of Technology), head of investment and development department of ChinaHuandao Group Company, deputy chief engineer of group and chief manager of overseas listed leading group.Ms. Shen Hongtao, born in August 1967, PhD of management of Xiamen University, professor, doctoralsupervisor. Currently, she is a professor in accounting department of Jinan University, and concurrently serves asmember of Accounting Society of China, Standing member of Accounting Association of Guangdong Province,editorial board member of China Journal of Accounting Studies, editorial board member of Accounting Study,independent director of Rising Nonferrous Metals Co.,Ltd, independent director of Polyrocks Chemical Co.,Ltdand independent director of Guangdong Electric Power Development Co.,Ltd. She had served as deputy sectionhead of Guangdong Provincial People's Government, consultant of PwC International and vice president ofInternational College of Jinan University.Mr. Wang Xi, born in April 1970, PhD of economics of Sun Yat-sen University, professor, doctoral supervisor,Specially-appointed Professor of Pearl-river Scholar. Currently, he serves as professor of Lingnan College ofYat-sen University and Director of Institute of China and transition and open economy of Sun Yat sen University,concurrently serves as Deputy Secretary-General and Standing member of China Institute of International Financeand China Society of World Economics, editorial board member of world economy, economist of monetarypolicy committee of the people's Bank of China and business center of National Bureau of statistics, independent

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

director of Guangdong Electric Power Development Co.,Ltd., Guangzhou Yuexiu Financial Holdings Group Co.,Ltd., Zhuhai Rural Commercial Bank, CNFinance holding Co.,Ltd. and BY-HEALTH Co.,Ltd, External directorof Guangzhou Bus Group.He was the Vice President of Lingnan College of Yat-sen University.

Mr. Ma Xiaoqian, born in March 1964, is Ph.D.of engineering thermophysics from South China University ofTechnology. He is a professor and currently serving as the director of the Key Laboratory of the Electric PowerSchool of South China University of Technology and concurrently serving as the deputy director of teachingguiding committee of energy and power professional of high education of the Ministry of Education, the chairmanof the Guangzhou Energy Institute, the outside director of Guangzhou Environmental Protection InvestmentGroup Co., Ltd., and the independent director of Guangzhou Development Group Co., Ltd. He used to be the deanand vice president of Electric Power College of the South China University of Technology.Mr. Yin Zhongyu, born in February 1969. He is Master of rural finance from Northwest Agricultural University.He is currently the general manager of the Great Wall Securities M&A Department. He previously served as adirector of the Guotai Junan M&A business and an executive director of Shanghai Longrui InvestmentConsultants Company,General Manager of M & A Dept of Great Wall Securities.Mr.Zhang Dewei, born in January 1961. Guangzhou Normal University Bachelor of Science, Jinan UniversityMaster of Business Administration. Senior economist. He is currently theDeputy Secretary of DisciplineInspection Commission, General Auditor, General Manager of Audit department and Secretary of Party branch ofGuangdong Energy Group Co., Ltd. He served as Director of the General Manager's Office of Guangdong ElectricPower Development Co., Ltd., Secretary of Board Affairs Department and Secretary of the Board of Directors,Deputy Director of the Board of Guangdong Yudean Asset Management Co., Ltd., Deputy Director of the Boardof Directors of Guangdong Energy Group Co., Deputy Minister of Legal Affairs, Deputy Minister of CapitalOperations . The head of the work department of the audit and supervisory board and the secretary of the Partybranch,Chairman of the Supervisory Committee of Guangdong Electric Power Development Co., Ltd.Ms. Shi Yan, born in December 1977, Master graduate from Sun Yat-sen University, Senior accountant. Currently,she is the manager of the comprehensive branch of the Finance Department of Guangdong Energy Group Co., Ltd.Previously, she was the special manager, director and general manager of the Cost Accounting Division of theFinance Department of Guangdong Energy Group Co., Ltd.Mr. Zhu Weiping, born in May 1957. Doctor of Economics, Jinan University. He is currently a vice president ofthe China Industrial Economics Society, executive vice president of the Guangdong Economic Association,Zhujiang Industrial and Guangsheng Youse Independent Director, Independent Supervisor of Guangdong ElectricPower Development Co., Ltd..Mr. Jiang Jin Suo, born in March 1968. Doctor of Management, Jinan University. Professor, Certified PublicAccountant. He is currently the Deputy Director of Accounting Department of Guangdong Finance Institute,Member of Guangzhou Institute of Certified Public Accountants, Independent Supervisor of Guangdong ElectricPower Development Co., Ltd.Mr. Hu Jinpei, born in April 1963, graduated from correspondence college, engineer, is currently the Director ofDiscipline Inspection Department of Shajiao A Power Plant. He used to be the First Engineer of thermalengineering in Maintenance Department of Shajiao A Power Plant, Director of Material Division of MaintenanceDepartment of Shajiao A Power Plant, director of Material Procurement Division of Operation Department ofShajiao A Power Plant, Deputy General Manager of diversified corporation of Shajiao A Power Plant, GeneralManager of Dongguan Humen Jinfan Industrial Corporation of Shajiao A Power Plant, and Director of LogisticsService Department of Shajiao A Power Plant.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Mr. Li Qing, born in May 1977. Bachelor of Economics, Shanghai University of Finance and Economics. senioraccountant. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, director of theaudit room. Former Yunfu Power Plant Finance Department Accounting, Guangdong Yuelong Power Co., Ltd.Mr. Tang Yongguang, born in December 1962. Bachelor of Engineering, Chongqing University. Senior engineer.He is currently the Deputy General Manager of Guangdong Electric Power Development Co., Ltd. He used to be aboiler technician in Huangpu power plant, a senior engineer in the biotechnology department of Guangdongpower industry bureau, a manager of the safety supervision division of the biotechnology safety supervisiondepartment of Guangdong Energy Group Co., Ltd., a member of the party committee and deputy manager ofShaoguan power plant, a member of the party committee and deputy manager of Shajiao C power plant, a deputydirector of the biotechnology safety supervision department of Guangdong Energy Group Co., Ltd., and a deputydirector of the safety supervision and Production Technology department of Guangdong Energy Group Co., Ltd.Finance Minister Assistant.Mr. Liu Wei, born in April 1979, is Bachelor of finance from Zhongnan University of Economics and Law. He isan economist and currently serves as the Company’s deputy general manager, chief financial officer, secretary ofthe board of directors, and concurrently as manager of the board affairs department. He used to be responsible forthe financial department of Guangdong Electric Power Development Co., Ltd., and be responsible and as the hostof the Board Affairs Department, and the representatives of the company's securities affairs and Manager.Office taking in shareholder companies

√Applicable □Not applicable

Names of the

persons inoffice

Names of the persons in officeNames of the shareholdersTitles engaged in the shareholdersSharing date of office termExpiry date of office termDoes he /she receive remuneration or allowance from the shareholder
Rao SuboGuangdong Energy Group Co., Ltd.Vice chief engineerOctober,2005Yes
Rao SuboGuangdong Energy Group Co., Ltd.Director of securityJuly,2018Yes
Wen LianheGuangdong Energy Group Co., Ltd.Deputy GMDecember,2020Yes
Chen ZeGuangdong Energy Group Co., Ltd.General Counsel, Secretary of the Board of Directors, Minister of legal Affairs and Capital OperationsJune,2016Yes
Li FangjiGuangdong Energy Group Co., Ltd.Vice chief engineerApril,2018Yes
Li FangjiGuangdong Energy Group Co., Ltd.General Manager of Operating Management Dept and Secretary of Party BranchFebruary1,2021Yes

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Yan Ming

Yan MingGuangdong Energy Group Co., Ltd.Vice Chief Engineer, Minister of Strategic Dept and Secretary of Party BranchFebruary,2021Yes
Li BaobingGuangdong Energy Group Co., Ltd.Minister of Finance and secretary of Party BranchSeptember,2019Yes
Zhang DeweiGuangdong Energy Group Co., Ltd.Deputy Secretary of Discipline Inspection Commission, General Auditor, General Manager of Audit departmentSeptember,2017Yes
Shi YanGuangdong Energy Group Co., Ltd.Deputy Gm of Finance DeptJune,2020Yes
Mao QinghanGuangzhou Development Group Co., Ltd.Executive directorDecember,2017Yes
Notes to post-holding in shareholder’s unitWhere there are more than one post, the starting time of appointment shall be the starting time of the main post.

Offices taken in other organizations

√Applicable □Not applicable

NameOther unitTitleStart date of office termEnd date of office termDrawing remuneration and allowance from of other unit(Y/N)
Wang JinGuangdong Energy Maoming Thermal Power Plant Co., Ltd.Board chairmanMarch,2019No
Wang JinGuangdong Red Bay Power Generation Co., Ltd.Board chairmanSeptember,2018No
Wang JinGuangdong Yudean Jinghai Power Generation Co., Ltd.DirectorJune,2018No
Wang JinGuangdong Huizhou Natural Gas Power Generation Co., Ltd.Board chairmanJune,2018No
Wang JinGuizhou Yueqian Electric Power Co., Ltd.Board chairmanMay,2019No
Wang JinZhuhai Special Economic Zone Guangzhu Power Generation Co., Ltd.Board chairmanJuly,2020No
Rao SuboGuangdong Shaoguan Yuejiang Power Generation Co., Ltd.Board chairmanOctober,2018No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Rao Subo

Rao SuboYudean Yunhe Power Generation Co., Ltd.Board chairmanJune,2018No
Rao SuboNorth Union Electric Power Co., Ltd.DirectorMay,2018No
Rao SuboTianshengqiao First Class Hydropower Development Co., Ltd.Board chairmanJune,2017No
Wen LianheGuangzhou Electric Power Trading Center Co., Ltd.DirectorJanuary,2020No
Wen LianheGuangzhou Electric Power Trading Center Co., Ltd.DirectorApril,2019No
Wen LianheGuangdong Zhuhai Power Generation Plant Co., Ltd.Board chairmanJuly,2018No
Chen ZeGuangdong Yudean Jinghai Power Generation Co., Ltd.Board chairmanMarch,2017No
Chen Ze广Guangdong Yangjiang Port Co., Ltd.Board chairmanNovember,2019No
Zheng YunpengGuangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd.Board chairmanSeptember,2018No
Zheng YunpengGuangdong Yudean Bohe Coal Power Co.,Ltd.Board chairmanJuly,2018No
Zheng YunpengGuangdong Yudean Binhaiwan Energy Co., Ltd.Executive directorMay,2019No
Zheng YunpengGuangdong Yudean Dayawan Integrated Energy Co., LtdBoard chairmanJanuary,2020No
Zheng YunpengGuangdong Yudean Dananhai Intelligent Energy Co., Ltd.Executive directorJanuary,2021No
Zheng YunpengGuangdong Yudean Baihua Integrated Energy Co., LtdExecutive directorFebruary,2021No
Li BaobingCSPG Energy Co., Ltd.SupervisorJune,2018No
Li BaobingGuangdong Yudean Finance Lease Co., Ltd.Board chairmanSeptember,2019No
Li BaobingGuangdong Energy Group Finance Co., Ltd.DirectorSeptember,2020No
Liang PeiluGuangdong Yudean Humen Power Generation Co., Ltd.Board chairman, General ManagerApril,2019No
Liang PeiluGuangdong Yudean Binhaiwan Energy Co., ltd.General ManagerMay,2019No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Mao Qinghan

Mao QinghanGuangzhou Development Electric Power Enterprise Co., Ltd.Executive directorApril,2018No
Mao QinghanGuangzhou Guangneng Investment Co., Ltd.Executive directorApril,2018No
Sha QilinGuangdong Nanguo Desai Law firmA lawyer,PartnerMarch,2007Yes
Shen HongtaoAccounting dept , Jinan UniversityProfessorApril,2012Yes
Shen HongtaoGuangsheng Nonferrous Metal Co., Ltd.Independent DirectorApril,2015Yes
Shen HongtaoGuangzhou Yuexiu Finance Holding Group Co., Ltd.Independent DirectorNovember,2017Yes
Shen HongtaoGuangzhou Store Co., Ltd.Independent DirectorSeptember,2016Yes
Shen HongtaoRongjie Co., Ltd.Independent DirectorOctober,2017Yes
Wang XiLingnan College, Sun Yat-sen UniversityProfessorJuly,2006Yes
Wang XiCNFinance holding Co.,Ltd.Independent DirectorMarch 2019Yes
Wang XiBY-HEALTH Co.,LtdIndependent DirectorSeptember 2020Yes
Wang XiGuangzhou Yuexiu Financial Holdings Group Co., Ltd.Independent DirectorJanuary 2019Yes
Wang XiZhuhai Rural Commercial Bank Co., Ltd.Independent DirectorJuly,2014Yes
Wang XiGuangzhou Bus GroupExternal directorAugust 2018Yes
Ma XiaoqianProvincial Key Laboratory, School of Electric Power, South China University of TechnologyDirectorJuly,2014Yes
Ma XiaoqianGuangzhou Environmental protection Investment Group Co., Ltd.External directorSeptember,2016Yes
Ma XiaoqianGuangzhou Development Group Co., Ltd.Independent DirectorJune,2016Yes
Yin ZhongyuLC SecuritiesAssistant presidentSeptember,2019Yes
Shi YanGuangdong Electric Power Development CorporationChairman of the SupervisoryFebruary,2021No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Committee

Committee
Shi YanGuangdong Energy Group Guizhou Co., Ltd.DirectorAugust,2020No
Shi YanGuangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd.SupervisorMarch,2018No
Zhu WeipingInstitute of industrial Economics, Jinan UniversityProfessor, PresidentJanuary,2000Yes
Zhu WeipingGuangsheng Nonferrous Metal Co., ltd.Independent directorNovember,2016Yes
Jiang JinsuoGuangdong finance InstituteProfessor, Head of DeptJanuary,2013Yes
Hu JinpeiGuangdong Electric Power Development Co.,Ltd. Shajiao A Power PlantMinister of Discipline InspectionNovember,2020
Li QingGuangdong Yudean Bohe Coal Power Co.,Ltd.Chairman of the Supervisory CommitteeDecember,2018No
Li QingLincang Yudean Energy Co., Ltd.SupervisorJanuary,2015No
Li QingGuangdong Yudean Yongan Natural Gas thermal Power Co., Ltd.Chairman of the Supervisory CommitteeMarch,2019No
Li QingYunnan Nengtou Weixin Energy Co., Ltd.Convenor of the Board of SupervisorsMarch,2019No
Li QingShenzhen Guangqian Electric Power Co., Ltd.Chairman of the Supervisory CommitteeDecember,2018No
Li QingZhanjiang Zhongyue Energy Co., Ltd.Chairman of the Supervisory CommitteeAugust,2019No
Li QingGuangdong Yudean Baihua Integrated Energy Co., LtdSupervisorFebruary,2021No
Tang YongguangGuangdong Electric Industry Fuel Co., Ltd.DirectorMarch,2020No
TangZhanjiang Electric Power Co., Ltd.DirectorDecember,2019No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Yongguang

Yongguang
Tang YongguangZhanjiang Zhongyue Energy Co., Ltd.Board chairmanDecember,2019No
Tang YongguangGuangdong Red Way Power Generation Co., Ltd.Vice Board chairmanDecember,2019No
Tang YongguangGuangdong Huizhou Pinghai Power Generation Co., Ltd.Vice Board chairmanDecember,2019No
Tang YongguangGuangdong Yudean Holdings Western Investment Co., Ltd.DirectorOctober,2018No
Tang YongguangGuangdong Shaoguan Yuejiang Power Generation Co., ltd.Vice Board chairmanOctober,2018No
Tang YongguangGuangdong Yudean Xinhui Power Generation Co., Ltd.DirectorJuly,2020No
Tang YongguangGuangdong Yudean Huaqing Coal Gas Union cycle Power Generation Co., Ltd.Board chairmanJuly,2020No
Liu WeiGuangdong Wind Power Generation Co., Ltd.DirectorDecember,2017No
Liu WeiGuangdong Yudean Finance Co., Ltd.DirectorMarch,2019No
Liu WeiGuangdong Huizhou Natural Gas Power Generation Co., Ltd.DirectorMarch,2018No
Liu WeiGuangdong Yudean Electric Power Sales Co., Ltd.DirectorDecember,2017No
Liu WeiGuangdong Yudean Shipping Co., Ltd.Convener of the Board of SupervisorsMay,2007No
Liu WeiShenzhen Capital Group Co., Ltd.SupervisorOctober,2019No
Liu WeiGuangdong Yuejia Electric Power Co., Ltd.Vice Board chairmanJanuary,2019No
Liu WeiGuangzhou Zhujiang Natural Gas Power Generation Co., Ltd.DirectorJuly,2020No
Liu WeiGuangdong Energy Finance Leasing Co., Ltd.DirectorNovember,2020No
Liu WeiGuangdong Yudean Zhongshan Thermal Power Plant Co., Ltd.Board chairmanJuly,2020No

Punishments to the current and leaving board directors, supervisors and senior managers during the report periodby securities regulators in the recent three years

□ Applicable √Not applicable

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

IV. Remuneration to directors, supervisors and senior executivesDecision-making procedures, basis for determination and actual payment of the remuneration to directors ,supervisors and senior executivesDirectors, supervisors and senior executives of the Company shall obtain labor remuneration and enjoycorresponding employee benefits according to their position and the Company's wage system. Except suchremuneration and benefits, no other remuneration and fringe benefits shall be additionally provided;Theallowance for the independent directors and independent supervisors of the Company shall be paid according tothe standards approved by the shareholders' general meeting.At the end of the report period, the directors, supervisors and senior executives received the actual remuneration before tax was total RMB 6.3546 million .Remuneration to directors, supervisors and senior executives in the reporting period

In RMB10,000

Name

NamePositionsSexAgeOffice statusTotal remuneration received from the shareholderRemuneration actually receives at the end of the reporting period
Wang JinBoard chairmanMale57In office84.16No
Rao SuboDirectorMale56In officeYes
Wen LianheDirectorMale52In officeYes
Chen ZeDirectorMale51In officeYes
Li FangjiDirectorMale53In officeYes
Zheng YunpengDirector, General ManagerMale52In office84.16No
Yan MingDirectorMale49In officeYes
Li BaobingDirectorMale46In officeYes
Liang PeiluDirectorMale56In office81.4No
Mao QinghanDirectorMale46In officeYes
Sha QilinIndependent directorMale60In office10.14No
Shen HongtaoIndependent directorFemale53In office9.07No
Wang XiIndependent directorMale50In office9.61No
Ma XiaoqianIndependent directorMale56In office9.61No
Yin ZhongyuIndependent directorMale51In office8No
Zhang DeweiChairman of theMale59In officeYes

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

SupervisoryCommittee

Supervisory Committee
Shi YanSupervisorFemale43In officeYes
Zhu WeipingIndependent SupervisorMale63In office5.89No
Jiang JinsuoIndependent SupervisorMale52In office6.43No
Hu JinpeiEmployee supervisorMale57In office27.92No
Li QingEmployee supervisorMale43In office39.79No
Tang YongguangDeputy GMMale58In office66.57No
Liu WeiDeputy General manager, Finance Manager, Board secretaryMale41In office77.41No
Lin WeifengEmployee supervisorMale52Dimission27.23No
Li JianwenEmployee supervisorMale48Dimission21.36No
Liu HuiDeputy GMFemale55Dimission66.71No
Total--------635.46--

Incentive equity to directors, supervisors or/and senior executives in the reporting period

□Applicable√Not applicable

V. Particulars about employees.

1. Staff jobs, education, job title number and proportion refer to the following pie chart:

Number of in-service staff of the parent company(person)997
Number of in-service staff of the main subsidiaries(person)5,691
Total number of the in-service staff(person)6,794
Total number of staff receiving remuneration in the current period(person)6,771
The number of the parent company and the main subsidiary’s retired staffs who need to bear the cost(person)3,596
Professional
Classified according by ProfessionsNumber of persons(person)

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Production

Production4,324
Sales103
Technical1,014
Financial173
Administrative1,034
Other146
Total6,794
Education
Classified according by education backgroundNumber of persons(person)
Doctor1
Master216
Universities3,383
Colleges1,813
Technical secondary school236
High school and Below1,145
Total6,794

2. Remuneration policies

The company’s staff received the salaries and enjoyed the benefits according to the relevant provisions stipulatedin the company’s Salary Management Approach. The salary of the company’s staff (Except the management staffwho categorized in the annual salary system) basically constituted by the basic salary, post salary, performancesalary, allowance, overtime wages and special bounties and so on.

3.Training plan

The company formulated the Temporary Provisions for the Management of Staff Education and Training. Thestaff training was adhered to the principle of learning integrated with application, learning by the needs andstressing of practical effect, focused on the main contents of the post and the practical operation skills. Thetraining contents included the new staff orientation training, post training, continuing education, overseas trainingand other trainings.

4. Outsourcing situation

□ Applicable √ Not applicable

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

X. Administrative structureI.Basic state of corporate governanceThe company is strictly in accordance with “Company Law”, “Securities Law”, “Governance Standards of ListedCompany”, “Listing Rules of Stocks” and other laws and regulations requirements, constantly perfects thecorporate governance structure, standardizes corporate operations and further enhances the level of corporategovernance. The company has established the corporate “Articles of Association”, the rules of procedure of threemeetings’ operation, the working rules of the board of directors special committee, the working rules of thegeneral manager of company and working conditions and internal control system which basically covers allaspects of the operation management like financial management, investment management, information disclosure,associated trade, external guarantees and fund-raising. These systems are implemented better. During thereporting period, the company has amended part of the clauses in “Inside Information Management System” basedon the original systems and the requirements of the CSRC.Does there exist any difference in compliance with the corporate governance , the PRC Company Law and therelevant provisions of CSRC,

□ Yes √ No

There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevantprovisions of CSRC.II. Independence and Completeness in business, personnel , assets, organization and financeThe company has implemented separation of operation, separation of human resource, separation of assets,separat ion of organization and financial independence between controlling shareholder. And it has a completebusiness and operations management ability. 1. Separation of operation: the Company is principally engaged inthe electricity generation and sales to Guangdong Electric Power Holding Co.(“GPHC”) directly. The Companyhas subcontracted the subsidiary of Yudean, the holding company, to purchase the fuels, which is solely for thepurpose of better utilization of large-scale purchase and cost control. 2. Separation of human resource: the GeneralManager and all his subordinates, Secretary to the Board of Directors, Financial Manager are paid by theCompany and take no position in the holding company. 3. Separation of assets: the Company has independentproduction system, supporting system and other facilities. The Company owns its intangible assets such asintellectual property rights, trademarks and non-patent technology; 4. Separation of organization: the Companyhas established integrated operating institution of its own.5.. Financial independence: the Company has anindependent financial department and has established independent accounting system and financial managementsystem. It opened independent bank accounts for its own operation.III. Competition situations of the industry

√Applicable □ Not Applicable

Problem

Types

Problem TypesName of the Controlling ShareholdersProperty of the Controlling ShareholdersProblems and CausesCountermeasuresTime Schedule of Works and Follow-up Program
Horizontal competitionsGuangdong Energy Group Co., Ltd.Local SASACEnergy Group was established when Guangdong Provincial Government took the lead in the implementation of the “plant and network separation” power system reform in China, and was separated and formed from Guangdong Provincial Power Group Corporation.On January 3, 2018, the company disclosed Announcement on Controlling Shareholders' Commitment to Perform Related Matters (public notice No.: 2018-01); on January 13, 2018, the company disclosedOur company will actively fulfill the trusteeship and responsibilities according to the “Equity Custody Agreement” and participate in the management and decision-making and inspection and supervision of the custody target. The company will cooperate with Energy Group to push forward

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

It is the largest and mostpowerful power generationenterprise in GuangdongProvince. Yudean Power isthe only listed companyunder the Energy Groupand is engaged in powerproduction business. Atpresent, Energy Group stillhas some remaining powergeneration assets that havenot been included inYudean Power temporarily.Therefore, there is a certaindegree of horizontalcompetition.

It is the largest and most powerful power generation enterprise in Guangdong Province. Yudean Power is the only listed company under the Energy Group and is engaged in power production business. At present, Energy Group still has some remaining power generation assets that have not been included in Yudean Power temporarily. Therefore, there is a certain degree of horizontal competition.Announcement of Related Transactions on the "Equity Custody Agreement" signed with Guangdong Energy Group Co., Ltd. (public notice No.: 2018-04). In order to avoid competition in the same industry and to fulfill the relevant horizontal competition commitments, Energy Group has signed the Entrusted Management Agreement with the company, and all the shareholders' rights other than the ownership, income, and disposal rights of the company that temporarily fails to meet the listing conditions in the company's custody area of the Energy Group are escrowed to our company.the defect rectification of the underlying assets, study the rectification and solution to the defects and obstacles in the relevant assets that do not meet the listing conditions, promote relevant rectification work from the aspects of improving project approval or approval procedures, clarifying land and property ownership, enhancing asset profitability, and implementing legal compliance. For custody assets that meet the listing conditions in the future, Energy Group will, in accordance with the unified deployment of the Guangdong Provincial Party Committee and the provincial government and the overall requirements for the reform of state-owned enterprises, actively create conditions for the injection into listed companies in accordance with the status of the assets under custody, combined with enterprise restructuring, structural adjustment arrangements, electricity market and capital market conditions.

IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period

1.Annual General Meeting

SessionsTypeInvestor participation ratioMeeting DateDisclosure dateDisclosure index
The first provisional shareholders’ General meeting in 2020Provisional shareholders’ General Meeting72.63%April 27,2020April 28,2020Announcement :Announcement of Resolution of the first Provisional shareholders’ general meeting in 2020,Announcement No.:2020-28, Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
2019 Shareholders’ general meetingAnnual General Meeting72.64%May 20,2020May 21,2020Announcement :Announcement of Resolution of 2019 shareholders’ general meeting ,Announcement No.:2020-37. Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
The Second provisional shareholders’ General meeting in 2020Provisional shareholders’ General Meeting72.66%October 28,2020October 29,2020Announcement :Announcement of Resolution of the Second Provisional shareholders’ general meeting in 2020,Announcement No.:2020-57, Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn
The ThirdProvisional72.56%DecemberDecemberAnnouncement :Announcement of

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

provisionalshareholders’General meeting in2020

provisional shareholders’ General meeting in 2020shareholders’ General Meeting21,202022,2020Resolution of the Third Provisional shareholders’ general meeting in 2020,Announcement No.:2020-68, Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn

2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

□ Applicable √Not applicable

V. Responsibility performance of independent directors in report period

1. The attending of independent directors at board meetings and shareholders’ general meeting

The attending of independent directors
Independent DirectorsNumber of Board meetings necessary to be attended in the reporting periodNumber of spot attendancesNumber of meetings attended by CommunicationNumber of attendances by representativeNumber of absenceFailure to personally attend board meetings successively twice (Yes/No)Times for attending the AGM
Sha Qilin129300No4
Shen Hongtao128310No3
Wang Xi129300No4
Ma Xiaoqian129300No4
Yin Zhongyu127320No3

Notes to failure to personally attend Board Meetings Successively Twice

None

2.Objection of independent directors on some relevant issues

Objection of independent directors on some relevant issues

□ Yes √No

Independent directors proposed no objection against the relevant matters in the reporting period.

3. Other notes to duty performance of independent directors

Has an independent director’s advice to the Company been accepted

√Yes □No

Explanation on acceptance of or failure to accept an independent director’s advice to the Company.NoneVI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period

The Ninth board of directors of the company comprises committee of strategy, audit, budget, nomination andremuneration and appraisal. Each professional committee has established their corresponding working rules andput forward related professional opinions and suggestions according to their respective duties to the companyoperating development, which promoted the standardized operation of the company. In 2020, the duty fulfillmentconditions of each special committee of the company's board of directors are as follows:

1. According to relevant regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange,

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

the Audit Committee of the Board of Directors of the Company conscientiously has performed its duties andparticipated in the annual audit, internal control supervision, risk management, semi-annual report review andmajor accounting treatment review of the Company. During the reporting period, the Audit Committee of the ninthBoard of Directors held a total of 2 meetings to review and form review opinions on the Company's 2019 AnnualReport, 2019 Internal Control Evaluation Report, 2019 Comprehensive Risk Management Report, 2019 AuditInstitution Hiring, Provision for Impairment of Assets, 2020 Semi-Annual Report, and other proposals, whichplayed an important role in the effective decision-making of the Board of Directors.

2. The Board of Directors' Remuneration and Appraisal Committee reviewed the remuneration of the directors,supervisors and senior management personnel disclosed in this report, and considered that the determination of theremuneration standard and the granting of annual remuneration can be combined with the performance of therespective positions, which is consistent with the company’s remuneration management regulations; theremuneration of directors, supervisors and senior management personnel disclosed in the annual report is true.

3. The budget committee of the Ninth board held its 3nd meeting on March 30, 2020 , reviewed and adopted the“Proposal on Illustration of Budget Implementation in 2019 and Budget Preparation in 2020”.

4. According to the Company Law, Stock Listing Rules, Articles of Association, Interim Provisions on Prohibitionof Securities Market and other relevant regulations, the nominating members of the Board of Directors carefullyexamined the qualifications of directors and senior managers of the Ninth Board of Directors of the Company, andformed relevant examination opinions and submitted them to the Board of Directors.

VII. Work of the supervisory CommitteeDid the supervisory Committee find any risk existing in performing the supervision activities in the reportingperiod

□Yes √No

The supervisory Committee has no objection against any matters under supervision in the reporting periodVIII. Assessment and incentive Mechanism for Senior executivesPerformance evaluation and incentive system will be employed by senior managers on the basis of enterprisesalary management system.IX. Internal control situations

1.Specific situations on major defects of internal control discovered during report period

□ Yes √ No

2.Self-evaluation report on internal control

Disclosure date of appraisal report oninternal control

Disclosure date of appraisal report on internal controlApril 10,2021
Disclosure index of appraisal report on internal controlJuchao Website:(http://www.cninfo.com.cn), Selfevaluation report of internal control in 2020
Proportion of total unit assets covered by appraisal in the total assets of the consolidated financial statements of the company98.47%
Proportion of total unit incomes covered by appraisal in the total business incomes of the consolidated financial statements of the company99.56%
Standards of Defects Evaluation
CategoryFinancial ReportNon-financial Report

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

Qualitative criteria

Qualitative criteriaQualitative criteria of evaluation towards inner control deficiency of financial report made by company are as follows: Ⅰ, the inner control of financial report should be considered as “significant deficiency” if the following circumstances (including but not limited to) occurred: ① the ineffective environmental control; ② irregularities appearing between company directors, supervisors and senior executives; ③ serious mistakes in the financial statements of the current period found by external audit but not the inner control in the process of operating; ④ ineffective supervision of inner control from directorate and inner audit institution. Ⅱ, the inner control of financial report should be considered as “serious deficiency” if the following circumstances occurred: ① accounting policy chosen and applied is not based on the GAAP; ② anti-irregularity procedure and control measures are not established; ③ very few relative control measures are established or implemented in terms of the accounting treatment related to unconventional or special transaction; ④ one or more deficiencies exist in the control process of final financial report and the authenticity, accuracy and integrity of establishment can not be assured reasonably. Ⅲ common deficiency means, apart from the above “significant deficiency” and “serious deficiency”, other deficiencies exist in the inner control process.Qualitative criteria of evaluation towards inner control deficiency of non-financial report made by company are as follows: ① significant deficiency means one or more combinations of control deficiency which may result in seriously deviating from control goals. ② serious deficiency means one or more combinations of control deficiency whose severity and financial result are less than those of significant deficiency with possibility of deviating company from its control goals. ③ common deficiency means other control deficiencies apart from significant and serious deficiencies.
Quantitative standardA quantitative criterion regards operating receipt and gross value of assets as its yard stick. ① inner control deficiency may lead to loss related to profit statement, which is measured by operating receipt. The amount of misstatement in financial report resulted from the control deficiency or its combination is less than 0.5 percent of the operating receipt, which could be considered as the common deficiency. That would be considered as serious deficiency if the amount of misstatement in financial report resulted from the control deficiency or its combination is more than 0.5 percent but less than 1 percent of the operating receipt. And that would be regarded as significant deficiency if that is more than 1 percent of the operating receipt. ② inner control deficiency may lead to loss related to assets management, which is measured by total assets. The amount of misstatement in financial report resulted from the control deficiency or its combination is less than 0.5 percent of the total assets, which could be considered as the common deficiency. That would be considered as serious deficiency if the amount of misstatement in financial report resulted from the control deficiency or its combination is more than 0.5 percent but less than 1 percent of the total assets. And that would be regarded as significant①the significant deficiency means that the direct property loss is between 50 million yuan .(2) the significant deficiency means hat the direct property loss is between 30 million yuan (including 30 million yuan) ; the serious deficiency means that the direct property loss is between 30 million.

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

deficiency if that is more than 1 percent ofthe total assets.

deficiency if that is more than 1 percent of the total assets.
Number of major defects in financial reporting(a)0
Number of major defects in non financial reporting (a)0
Number of important defects in financial reporting(a)0
Number of important defects in non financial reporting(a)0

X. Internal Control audit report

√ Applicable □Not applicable

Review opinions in the internal control audit report
We believe that Guangdong Electric Power Development Co., Ltd. has maintained effective internal control over financial reporting in all material respects as of 31 December 2020 as per the Basic Rules for Enterprise Internal Control and relevant regulations.
Disclosure date of audit report of internal control (full-text)Disclosure
Index of audit report of internal control (full-text)April 10,2021
Internal audit report’s opinionJuchao Website: (http://www.cninfo.com.cn)2020 Audit report of internal control
Type of audit report on internal controlUnqualified auditor’s report
Whether there is significant defect in non-financial reportNo

Has the CPAs issued a qualified auditor’s report of internal control .

□ Yes √No

Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board ofDirectors

√Yes □No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

XI. Corporate BondWhether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and

not yet due or due but not folly cashed on the approval date of annual reportYes

1.Basic information of corporate bonds

Bond name

Bond nameBond short nameBond codeIssue dayDue dayBond balance (RMB 10,000)Interest rateServicing way
Public Issuance of Corporate Bonds to Qualified Investors in 2020 (Phase I)20 Yudean 01149113.SZApril 29,2020April 29,2025150,0002.45%Using simple interest rate on a yearly basis, regardless of compound interest. Due payments once a year, maturing debt at a time. In the final phase, interest is paid together with the principal redemption.
Public Issuance of Corporate Bonds to Qualified Investors in 2021 (Phase I)21 Yudean 01149369.SZJanuary 27,2021January 27,2024100,0003.57%Using simple interest rate on a yearly basis, regardless of compound interest. Due payments once a year, maturing debt at a time. In the final phase, interest is paid together with the principal redemption.
Corporate bonds listed or trading placesShenzhen Stock Exchange
Investor Proper ArrangementNot applicable
During the reporting period, interest payment situation of the company bondsDuring the reporting period, the Bonds have not yet reached the interest payment date.
If the corporate bonds attachedThe term of 20 Yudean 01 bonds is 5 years, attaching the option that the issuer will redeem at

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

to special clauses to the issueror the investors such as optionclause and exchangeable clause,please specify theimplementation status of thecorresponding clauses. (Whenapplicable)

to special clauses to the issuer or the investors such as option clause and exchangeable clause, please specify the implementation status of the corresponding clauses. (When applicable)the end of the third year, the option that the issuer raises the coupon rate and the option that the investors will put back. During the reporting period, 21 Yudean 01 has no special clauses attached. he relevant clauses did not reach the implementation

II. Bond trustee and the credit rating agency information

Bond trustee:
NameChina CITIC Securities Co., LtdOffice2/F, B building, Kaiheng Center, Chaoyangmen Street, Dongcheng District , BeijingContactLiu RenshuoTel010-86451370
The credit rating agencies which follow and rate the corporate bond during the reporting period
NameCCXIOffice addressBuilding 6, Yinhe SOHO, No.2 Nanzhugan Alley , Dongcheng District, Beijing
During the report period, the bond trustee, credit rating agency employed by the company that have changed, reasons for the change, performing procedures, relevant influence on investors,etc(If applicable).Not applicable

III. The usage of corporate bonds to raise money

The usage and performance of raised funds from Corporate bondsAs of the end of the reporting period, the funds raised by 20 Yudean 01 have been used up to repay the Company's debts and supplement the working capital. As of the approval date of the annual report, the funds raised by 21 Yudean 01 have been used up to repay the Company's debts.
At the end of balance (RMB 10,000)0
Special fund raising account operationThe special account for raising funds shall be operated as agreed.
Whether the usage of the raised money corresponding to the purposes of promise,Yes

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

use plans, and other agreement

IV.Corporate bond rating informationOn April 20,2021, CCXI traced and analyzed the credit status of the company and the company’s bonds of“20Yudean 01”, Finalized by the China Credit Rating Credit Rating Committee, maintained the credit rating of AAA forthe main body of the company, with a stable outlook; maintained the credit rating of AAA for the corporatebonds.(The rating results were disclosed on the website: http://www.ccxi.com.cn and http://www.cninfo.com.cn, withthe title of Credit Rating Report for Public Issuance of Corporate Bonds to Qualified Investors in 2020 (Phase I) ofGuangdong Electric Power Development Co., Ltd.On January 12,2021, CCXI traced and analyzed the credit status of the company and the company’s bonds of“21Yudean 01”, Finalized by the China Credit Rating Credit Rating Committee, maintained the credit rating of AAA forthe main body of the company, with a stable outlook; maintained the credit rating of AAA for the corporatebonds.(The rating results were disclosed on the website: http://www.ccxi.com.cn and http://www.cninfo.com.cn, withthe title of Credit Rating Report for Public Issuance of Corporate Bonds to Qualified Investors in 2021 (Phase I) ofGuangdong Electric Power Development Co., Ltd.During the reporting period, the rating agencies did not issue a tracking rating report of 20 Yudean 01 and 21Yudean 01.V.Corporate bond credit mechanism, the debt repayment plans and other security measures

(1)The credit-raising mechanism: There is no guarantee for the bonds of 20 Yudean 01 and 21 Yudean 01.

(2)Debt repayment plan: The payment of principal and interest of 20 Yudean 01 and 21 Yudean 01 Bonds will be

handled through bond registration agencies and relevant institutions. The specific matters of payment will beexplained in the announcement disclosed by the issuer in the media specified by CSRC, Shenzhen StockExchange and China Securities Industry Association in accordance with relevant regulations.

(3)Debt repayment guarantee measures: In order to fully and effectively safeguard the legitimate rights andinterests of bondholders of the Bonds, the issuer has worked out a series of work plans for timely and fullrepayment of 20 Yudean 01 and 21 Yudean 01 Bonds, and strove to form a set of guarantee measures to ensure thesafe redemption of bonds. Including setting up a special reimbursement working group, formulating and strictlyimplementing the fund management plan, formulating the Rules of Bondholders' Meeting, giving full play to therole of bond trustee and strictly fulfilling information disclosure obligations, etc.VI. During the reporting period the bondholder meetingDuring the reporting period, the company did notDuring the reporting period, the company did not hold 20 Yudean 01 and 21 Yudean 01 bondholders meeting.VII. During the reporting period the bond trustee perform his dutiesAs the trustee of the bonds, China Securities has performed the duties of the bond trustee in strict accordance withthe Code of Practice of Corporate Bond Trustee, Prospectus and Trustee Management Agreement, and hascontinuously tracked the company's credit status, management and application of raised funds, and repayment of

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

principal and interest of corporate bonds, and urged the company to fulfill the obligations agreed in the prospectusof corporate bonds, thus safeguarding the legitimate rights and interests of bondholders.During the reporting period, there was no conflict of interest between China Securities and the issuer when ChinaSecurities performs the duties as a bond trustee.VIII.During the reporting period, the company's major accounting data and financial indicators for last 2years

In RMB 10,000

Items

Items20202019At the same time rate of change
Earnings before interest, tax, depreciation and amortization805,371.38755,964.556.54%
Current ratio53.38%57.45%-4.07%
Debt ratio58.42%54.70%3.72%
Quick ratio41.74%43.44%-1.70%
EBITDA/Total debts16.03%18.30%-2.27%
Interest coverage ratio3.522.7627.54%
Cash interest coverage ratio5.426.91-21.56%
EBITDA interest coverage ratio5.775.2410.11%
Loans repayment rate100%100%0%
Interest payment rate100%100%0%

The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the lastyear

□ Applicable √Not applicable

IX. Information about fulfillment of the stipulations or commitments specified in the Prospectus of theissuance of the bonds during the reporting period

1. On August 14, 2019, the Company issued the third ultra-short-term financing bonds of RMB 900,000,000 in2019, with a bond duration of 180 days, and the repaid principal and interest during the reporting period is: RMB911,950,819.67;

2. On November 15, 2019, the Company issued the fourth ultra-short-term financing bonds of RMB1,000,000,000 in 2019, with a bond duration of 180 days, and the repaid principal and interest during the reportingperiod is: RMB1,011,311,475.41 ;

3. On February 20, 2020, the Company issued the First ultra-short-term financing bonds of RMB1,100,000,000 in2020, with a bond duration of 180 days, and the repaid principal and interest during the reporting period is:

RMB1,111,360,655.74 ;

4. On August 10, 2020, the Company issued the Second ultra-short-term financing bonds of RMB1,600,000,000in 2020, with a bond duration of 172 days, and the repaid principal and interest during the reporting period is:

RMB0 ;

5. On November 10, 2020, the Company issued the Third ultra-short-term financing bonds of RMB1,600,000,000

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

in 2020, with a bond duration of 178 days, and the repaid principal and interest during the reporting period is:

RMB0 ;

6. On August 27, 2018, the Company issued the first issue of 2018 medium-term notes in the inter-bank market,with a face value of RMB 800,000,000 and a term of 3 years. The interest repaid during the reporting period is:

RMB 33,520,000;

7. On March 18, 2013, the Company publicly issued 12 Yudean Bonds (i.e. real name book-entry corporate bonds)with a face value of RMB 1,200,000,000 and a term of 5+2 years, and the repaid principal and interest during thereporting period is: RMB 42,301,671.75;

8. Guangdong Huizhou Pinghai Power Plant Co., Ltd., a holding subsidiary of the Company, publicly issued 16Pinghai 01 real-name book-entry corporate bonds ("16 Pinghai 01") with a face value of RMB 700,000,000 and aterm of 5 years to the public on September 26, 2016, and the repaid interest during the reporting period is: RMB29,050,000.

X.Information about the bank credit obtaining and use, as well as repayment of the bank loans during thereporting periodIn the report period, the company signed an unconditional available bank amount limit of about RMB 69.584billion, of which the used amount limit was RMB 19.911 billion, thus the remaining available bank amount limitwas about RMB 49.673 billion. In this year, the company repaid bank loans of about RMB17.765 billion, and thebalance of bank loans was RMB 28.012billion.XI. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance ofthe bonds during the reporting periodThe company had committed to pay the principal and interests to the bondholders according to the stipulations ofthe prospectus of “20 Yudean 01 and 21 Yudean 01 Bonds” issuance. During the reporting period, the companystrictly fulfilled the above commitments.XI.Major events occurring in the period of reportNilXII.Whether there is a guarantor corporate bonds

□ Yes √No

Guangdong Electric Power Development Co., Ltd. 2020 Annual Report

XII.. Financial ReportI. Audit report

Type of audit opinion

Type of audit opinionUnqualified audit opinion
Date for signing the auditor’s reportApril 8 ,2021
Type of audit opinionPWC Certified Public Accountants (special general partnership)
Date for signing the auditor’s reportPWC ZTSZD No.(2021) 10033
Type of audit opinionWang Bin, Li Yanhua

FINANCIAL STATEMENTS ANDAUDITOR'S REPORTFOR THE YEAR ENDED 31 DECEMBER 2020

[English translation for reference only. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.]

Guangdong Electric Power Development Co., Ltd.

Financial Statements and Auditor's ReportFor the Year Ended 31 December 2020[English translation for reference only]

Guangdong Electric Power Development Co., Ltd. Financial Statements and Auditor's Report For the Year Ended 31 December 2020 [English translation for reference only]
ContentPage
Auditor’s Report116 - 124
Financial statements for the year ended 31 December 2020
Consolidated and company balance sheets125 - 128
Consolidated and company income statements129 - 130
Consolidated and company cash flow statements131 - 133
Consolidated statement of changes in equity134 - 135
Company statement of changes in equity136 - 137
Notes to the financial statements138 - 305
Supplementary Information of financial statements306 - 309

[English Translation for Reference Only]

Auditor’s Report

PwC ZT Shen Zi (2021) No. 10033

(Page 1 of 9)

To the shareholders of Guangdong Electric Power Development Co., Ltd.,

Opinion

What we have audited

We have audited the accompanying financial statements of Guangdong Electric Power Development Co., Ltd.(hereinafter “Guangdong Electric Power”), which comprise:

? the consolidated and company balance sheets as at 31 December 2020;? the consolidated and company income statements for the year then ended;? the consolidated and company cash flow statements for the year then ended;? the consolidated and company statements of changes in owners’ equity for the year then ended; and? notes to the financial statements.

Our opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, theconsolidated and company’s financial position of Guangdong Electric Power as at 31 December 2020, andtheir financial performance and cash flows for the year then ended in accordance with the requirements ofthe Accounting Standards for Business Enterprises (“CASs”).

Basis for Opinion

We conducted our audit in accordance with China Standards on Auditing (“CASs”). Our responsibilitiesunder those standards are further described in the Auditor’s Responsibilities for the Audit of the FinancialStatements section of our report. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

We are independent of Guangdong Electric Power in accordance with the Code of Ethics for ProfessionalAccountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”), and we have fulfilledour other ethical responsibilities in accordance with the CICPA Code.

Key Audit Matter

Key audit matters are those matters that, in our professional judgement, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of ouraudit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.

Key audit matters identified in our audit are summarised as follows:

? Impairment of power related fixed assets and long-term equity investments? Recognition of loss for investment in an associate due to provision for impairment of long-term

assets? Recognition of deferred tax assets related to deductible losses

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Key Audit Matters (Cont’d)

Key Audit Matter

Key Audit MatterHow our audit addressed the Key Audit Matter
(1) Impairment of power related fixed assets and long-term equity investments Refer to Note 2(27)(b)(i), Note 4(10)(b)(iii) and Note 4(13)(a)(vi) to the financial statements (Note 1). Certain subsidiaries and an associate, Weixin Yuntou Yudean Zhaxi Energy Co., Ltd. (hereinafter referred to as “Weixin Yuntou”) of Guangdong Electric Power have been experiencing continuous operating losses in recent years. Taking into account possible future risks, such as the instability of electricity demand, the unstable price of coal used in power generation, the macro-economy and other risk factors, management continuously observed the impairment of the aforesaid subsidiaries' asset groups of generator units (mainly including fixed assets) and the long-term equity investments of the aforesaid associate. As at 31 December 2020, management conducted impairment tests for the aforesaid subsidiaries and associate, and made a provision for impairment at the excess of the carrying amount of asset groups of generator units and long-term equity investments over their recoverable amount. The recoverable amount of the asset groups was the higher of the fair value, less disposal costs, of the asset groups and the long-term equity investments and the present value of the estimated future cash flows. The calculations of the fair value less disposal costs and the present value of the estimated future cash flows involve management’s significant judgements, including the discount rate, the estimated on-grid electricity price and its growth rate, the estimated electricity sales and its growth rate, the estimated price of coal used in power generation, the estimated asset disposal price and the estimated disposal costs.Our audit procedures for the impairment of power related fixed assets and long-term equity investments mainly include: ? We understood and evaluated the internal control relevant to test the impairment of fixed assets and long-term equity investments and tested the operating effectiveness of key control; ? We involved internal valuers to review and analyse the appropriateness of the method applied by management for the impairment test; ? Based on our understanding of the businesses of the subsidiaries and associate as well as the industry in which they operate, we compared with and analysed the assumptions adopted by management, including the discount rate, the estimated on-grid price and its growth rate, the estimated electricity sales and its growth rate, the estimated price of coal used in power generation, the estimated asset disposal price and the estimated disposal costs; we evaluated the reasonableness of the assumptions on fair value less disposal costs and the present value of the estimated future cash flows: - For the discount rate, we involved internal valuers to evaluate the appropriateness in combination with industry situation; - For the estimated on-grid electricity price and its growth rate, we compared historical growth rates and industry data, and considered market trend; - For the estimated electricity sales, its growth rate, and the estimated price of coal used in power generation, we have compared historical data, approved budgets and business plans, and checked the corresponding supporting documents;

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Key Audit Matters (Cont’d)

Key Audit Matters (Cont’d)

Key Audit Matters (Cont’d)How our audit addressed the Key Audit Matter (Cont’d)
(i) Impairment of power related fixed assets and long-term equity investments (Cont’d) As the carrying amounts of fixed assets and long-term equity investments with indication of impairment are significant to the consolidated financial statements of Guangdong Electric Power, and the impairment test of asset groups of generator units and long-term equity investments involves management’s significant estimates and judgements, impairment of power related fixed assets and long-term equity investments is identified as a key audit matter.Our audit procedures for the impairment of power related fixed assets and long-term equity investments mainly include (Cont’d): ? We checked the input data and formulas used in the calculation of the present value of estimated future cash flows, and evaluated the mathematic accuracy; ? We conducted sensitivity analysis on the discount rate and other key assumptions applied by management, and evaluated how the changes in key assumptions (individually or in aggregate) will give rise to different results to further evaluate if there’s any indication of management bias in selecting parameters of key assumptions. Based on the results of the aforesaid work, we found that management's judgements and estimates on the impairment of fixed assets and long-term equity investments are supported by appropriate evidence.
(ii) Recognition of loss for investment in an associate due to provision for impairment of long-term assets Refer to Note 2(11)(b), Note 4(10)(b)(i) to the financial statements. In 2020, Guangdong Yudean Shipping Co., Ltd. (hereinafter referred to as “Yudean Shipping”), associate of Guangdong Electric Power, has delivered a weaker performance than expected due to the sluggish international shipping market, continuous fluctuation in shipping prices, and rising operating costs. Thus, there is an indication of impairment of related long-term assets, and Yudean Shipping has made provision for impairment of long-term assets. In 2020, Yudean Shipping recognised a net loss of RMB 579,173,582, including a loss of RMB 585,756,126 arising from the provision for impairment loss on long-term assets and a loss of RMB 202,710,755 for investment in Yudean Shipping recognised by Guangdong Electric Power under the equity method. As at 31 December 2020, the carrying amount of the long-term equity investment of Guangdong Electric Power in Yudean Shipping was RMB 241,738,113.Our audit procedures for the recognition of loss for investment in an associate due to provision for impairment of long-term assets mainly include: ? We interviewed management of Yudean Shipping to understand the current year's operating results and the reasons for the loss related to impairment provision; ? We obtained the report of Yudean Shipping on the evaluation of impairment of its main asset groups, and involved an internal valuer to review and analyse the reasonableness of its testing method;

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Key Audit Matters (Cont’d)

Key Audit Matters (Cont’d)

Key Audit Matters (Cont’d)How our audit addressed the Key Audit Matter (Cont’d)
(ii) Recognition of loss for investment in an associate due to provision for impairment of long-term assets (Cont’d) Given the recognition of loss for investment in Yudean Shipping under the equity method in 2020 and the importance of the carrying amount of this long-term equity investment to the consolidated financial statements of Guangdong Electric Power, the recognition of loss for investment in an associate due to provision for impairment of long-term assets is identified as a key audit matter.Our audit procedures for the recognition of loss for investment in an associate due to provision for impairment of long-term assets mainly include (Cont’d): ? Based on our understanding of the businesses of Yudean Shipping and the industry in which it operates, we compared with and analysed the assumptions adopted by management, including the discount rate, the estimated shipping price and its growth rate, the estimated shipping capacity and its growth rate, and the estimated operating costs; we evaluated the reasonableness of the assumptions adopted by management in the calculations of the fair value, less disposal costs, and the present value of the estimated future cash flows: - For the discount rate, we involved internal valuers to evaluate its appropriateness in combination with industry situation; - For future shipping price and its growth rate, we compared it to historical growth rates and took the current market trend into consideration; - For the estimated shipping capacity and its growth rate, the estimated operating costs, etc., we compared them to the historical data, the approved budget and its business plan and checked the corresponding supporting documents;

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Key Audit Matters (Cont’d)

Key Audit Matters (Cont’d)

Key Audit Matters (Cont’d)How our audit addressed the Key Audit Matter (Cont’d)
(ii) Recognition of loss for investment in an associate due to provision for impairment of long-term assets (Cont’d)Our audit procedures for the recognition of loss for investment in an associate due to provision for impairment of long-term assets mainly include (Cont’d): ? We recalculated the investment loss in Yudean Shipping as recognised by management under equity method, and evaluated the accuracy of the calculation results; ? We checked management's presentation and disclosure of long-term equity investments and investment losses in the financial statements; Based on the results of the above work, we found that management's judgement on the recognition of loss for investment in an associate due to provision for impairment of long-term assets is supported by appropriate evidence.
(iii) Recognition of deferred tax assets related to deductible losses Refer to Note 2(27)(b)(iv) and Note 4(18) to the financial statements. As at 31 December 2020, Guangdong Electric Power recognised the corresponding deferred tax assets for the deductible losses incurred by individual subsidiaries at a total of RMB 216,733,521. According to the financial forecast of the aforesaid subsidiaries in future periods, management recognises deferred tax assets within the limits of which the aforesaid subsidiaries are likely to obtain future taxable income to offset the deductible losses. The financial forecast of the aforesaid subsidiaries in future periods involves significant management judgements, including estimated electricity sales, estimated on-grid electricity price, estimated price of coal used in power generation and other operating expenses.Our audit procedures for the recognition of deferred tax assets related to deductible losses mainly include: ? We obtained management's calculation sheet for the financial forecast in future periods, checked the input data and formulas used in the calculation, and evaluated the mathematic accuracy; ? We obtained supporting documents such as the income tax settlement report, tax returns and accounting records of the aforesaid subsidiaries, and reviewed for the existence of deductible losses and the accuracy of the amount and period; ? Based on our understanding of the businesses of the aforesaid subsidiaries and the industry in which they operate, we evaluated the key assumptions used by management to calculate the expected taxable income for future periods, including the reasonableness of assumptions on estimated electricity sales, estimated on-grid electricity price, estimated fuel price, and other operating expenses;

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Key Audit Matters (Cont’d)

Key Audit Matters (Cont’d)

Key Audit Matters (Cont’d)How our audit addressed the Key Audit Matter (Cont’d)
(iii) Recognition of deferred tax assets related to deductible losses (Cont’d) As the deferred tax assets related to deductible losses are significant to the consolidated financial statements of Guangdong Electric Power, and the financial forecast for future periods involves management’s significant estimates and judgements, the recognition of the deferred tax assets related to tax losses is identified as a key audit matter.Our audit procedures for the recognition of deferred tax assets related to deductible losses mainly include (Cont’d): ? We compared the taxable income estimated by management last year with the actual taxable income for the current year to access the historical accuracy of management’s forecast; ? We reviewed whether the deferred tax assets were recognised within the limits of which the taxable income was likely to be obtained in the future to offset deductible losses and deductible temporary differences. Based on the results of the above work, we found that management's estimates regarding the recognition of deferred tax assets related to deductible losses were supported by appropriate evidence.

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Other Information

Management of Guangdong Electric Power is responsible for the other information. The other informationcomprises all of the information included in 2020 annual report of Guangdong Electric Power other than thefinancial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,in doing so, consider whether the other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work wehave performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.

Responsibilities of Management and Audit Committee for the Financial Statements

Management of Guangdong Electric Power is responsible for the preparation and fair presentation of thesefinancial statements in accordance with the CASs, and for such internal control as management determines isnecessary to enable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.

In preparing these financial statements, management is responsible for assessing Guangdong Electric Power’sability to continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate Guangdong Electric Power orto cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing Guangdong Electric Power’s financial reporting process.

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Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether these financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with CASs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expectedto influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with CASs, we exercise professional judgement and maintain professionalscepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of the financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

? Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances.

? Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by management.

? Conclude on the appropriateness of management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on Guangdong Electric Power’s ability to continue as a goingconcern. If we conclude that a material uncertainty exists, we are required to draw attention in ourauditor’s report to the related disclosures in these financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause Guangdong Electric Powerto cease to continue as a going concern.

? Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

? Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within Guangdong Electric Power to express an opinion on the consolidated financialstatements. We are responsible for the direction, supervision and performance of the group audit. Weremain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.

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Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)

We also provide the Audit Committee with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters thatmay reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and are therefore the key audit matters.We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about thematter or when, in extremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

PricewaterhouseCoopers Zhong Tian LLP

Shanghai, the People’s Republic of China8 April 2021

PricewaterhouseCoopers Zhong Tian LLP Shanghai, the People’s Republic of China 8 April 2021Signing CPA Signing CPA_______________________ Wang Bin (Engagement Partner) _______________________ Li Yanhua

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

ASSETS

ASSETSNote31 December 202031 December 2019
Current assets
Cash at bank and on hand4(1)5,790,946,1175,081,641,969
Accounts receivable4(2)4,332,149,0333,197,690,464
Advances to suppliers4(3)766,871,830605,314,333
Other receivables4(4)459,266,554272,801,588
Inventories4(5)1,589,882,0291,817,059,269
Contract assets4(6)3,870,497
Current portion of non-current assets4(7)49,785,73428,865,131
Other current assets4(8)546,685,636305,595,567
Total current assets13,539,457,43011,308,968,321
Non-current assets
Long-term receivables4(9)-65,856,346
Long-term equity investments4(10)6,687,257,6146,455,784,562
Investments in other equity instruments4(11)3,548,088,0153,142,371,373
Investment properties4(12)49,732,66852,093,631
Fixed assets4(13)47,195,233,07938,555,718,718
Construction in progress4(14)9,153,637,10010,882,003,846
Intangible assets4(15)2,141,625,3831,787,738,640
Goodwill4(16)2,449,8862,449,886
Long-term prepaid expenses4(17)26,409,30519,473,586
Deferred tax assets4(18)446,587,650445,709,226
Other non-current assets4(19)3,180,340,0382,753,858,988
Total non-current assets72,431,360,73864,163,058,802
TOTAL ASSETS85,970,818,16875,472,027,123

CONSOLIDATED BALANCE SHEET (CONT’D)

AS AT 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

LIABILITIES AND OWNERS' EQUITY

LIABILITIES AND OWNERS' EQUITYNote31 December 202031 December 2019
Current liabilities
Short-term borrowings4(21)7,622,427,9165,904,132,791
Notes payable4(22)1,092,292,5461,364,236,650
Accounts payable4(23)2,666,180,5132,465,154,162
Advances from customers-432,714
Contract liabilities4(24)6,573,912-
Employee benefits payable4(25)304,548,373242,510,538
Taxes payable4(26)498,801,080571,377,151
Other payables4(27)6,775,700,5844,042,117,097
Current portion of non-current liabilities4(28)3,180,551,9513,182,980,482
Other current liabilities4(29)3,217,523,5761,912,282,192
Total current liabilities25,364,600,45119,685,223,777
Non-current liabilities
Long-term borrowings4(30)18,998,555,56816,587,103,380
Debentures payable4(31)1,499,542,9111,496,631,799
Long-term payables4(32)3,171,971,1272,485,346,245
Deferred income4(33)134,647,590139,256,513
Long-term employee benefits payable4(34)218,543,743134,988,860
Deferred tax liabilities4(18)638,571,910537,385,614
Other non-current liabilities4(35)200,970,029216,405,569
Total non-current liabilities24,862,802,87821,597,117,980
Total liabilities50,227,403,32941,282,341,757
Owners' equity
Share capital4(36)5,250,283,9865,250,283,986
Capital surplus4(37)4,902,263,9145,096,918,174
Other comprehensive income4(38)1,946,305,5951,676,143,044
Surplus reserve4(39)8,515,360,6388,245,767,593
Undistributed profits4(40)6,755,781,2895,909,128,280
Total equity attributable to equity owners of the Company27,369,995,42226,178,241,077
Minority interests8,373,419,4178,011,444,289
Total owners' equity35,743,414,83934,189,685,366
TOTAL LIABILITIES AND OWNERS' EQUITY85,970,818,16875,472,027,123

The accompanying notes form an integral part of these financial statements.

Legal representativePrincipal in charge of accountingHead of accounting department
Wang JinLiu WeiMeng Fei

COMPANY BALANCE SHEETAS AT 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

ASSETS

ASSETSNote31 December 202031 December 2019
Current assets
Cash at bank and on hand338,045,631224,504,289
Accounts receivable15(1)173,029,247209,249,102
Advances to suppliers26,680,50043,002,000
Other receivables15(2)328,224,857108,149,278
Inventories118,530,205151,518,056
Other current assets1,209,2171,228,009
Total current assets985,719,657737,650,734
Non-current assets
Long-term receivables467,000,000340,000,000
Long-term equity investments15(3)28,453,042,85526,514,106,513
Investments in other equity instruments3,548,088,0153,142,371,373
Investment properties6,389,8457,025,443
Fixed assets559,635,880706,435,221
Construction in progress200,57414,945,019
Intangible assets81,954,64985,839,959
Other non-current assets208,353,879356,004,000
Total non-current assets33,324,665,69731,166,727,528
TOTAL ASSETS34,310,385,35431,904,378,262

COMPANY BALANCE SHEET (CONT’D)

AS AT 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

LIABILITIES AND OWNERS’ EQUITY

LIABILITIES AND OWNERS’ EQUITYNote31 December 202031 December 2019
Current liabilities
Short-term borrowings1,902,013,1251,401,641,708
Accounts payable136,723,162156,122,676
Contract liabilities6,343,773
Employee benefits payable93,479,99763,480,425
Taxes payable28,112,05544,298,675
Other payables40,872,38671,126,853
Current portion of non-current liabilities836,189,6341,554,314,700
Other current liabilities3,217,281,1731,912,282,192
Total current liabilities6,261,015,3055,203,267,229
Non-current liabilities
Debentures payable1,499,542,911798,857,333
Long-term payables-3,466,237
Deferred income29,988,60639,984,807
Long-term employee benefits payable56,805,51336,570,958
Deferred tax liabilities621,507,946535,193,684
Total non-current liabilities2,207,844,9761,414,073,019
Total liabilities8,468,860,2816,617,340,248
Owners' equity
Share capital5,250,283,9865,250,283,986
Capital surplus5,405,326,6435,599,980,903
Other comprehensive income1,946,305,5951,676,143,044
Surplus reserve8,515,360,6388,245,767,593
Undistributed profits4,724,248,2114,514,862,488
Total owners' equity25,841,525,07325,287,038,014
TOTAL LIABILITIES AND OWNERS' EQUITY34,310,385,35431,904,378,262

The accompanying notes form an integral part of these financial statements.

Legal representativePrincipal in charge of accountingHead of accounting department
Wang JinLiu WeiMeng Fei

CONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

Item

ItemNote20202019
Revenue4(41)28,329,065,39129,360,155,150
Less:Cost of sales4(41)(22,472,276,501)(24,480,703,872)
Taxes and surcharges4(42)(253,585,385)(249,721,761)
Selling and distribution expenses4(43)(49,214,514)(43,788,762)
General and administrative expenses4(44)(835,927,395)(874,640,868)
Research and development expenses4(45)(274,579,716)(9,703,602)
Financial expenses4(46)(1,108,522,064)(1,230,315,841)
Including: Interest expenses1,111,500,9481,230,637,704
Interest income76,249,29266,836,652
Add:Other income4(50)39,698,14642,071,653
Investment income4(51)300,836,022125,541,240
Including: Share of profit of associates and joint ventures235,387,19764,909,255
Less:(Losses on)/Reversal of credit impairment4(49)(300,656)46,348,884
Asset impairment losses4(48)(487,542,577)(161,731,338)
Add:Gains on disposal of assets4(52)340,976,36120,503,424
Operating profit3,528,627,1122,544,014,307
Add:Non-operating income4(53)86,920,20633,236,719
Less:Non-operating expenses4(54)(93,280,408)(32,011,127)
Total profit3,522,266,9102,545,239,899
Less:Income tax expenses4(55)(887,005,403)(738,065,009)
Net profit2,635,261,5071,807,174,890
Classified by continuity of operations
Net profit from continuing operations2,635,261,5071,807,174,890
Net profit from discontinued operations--
Classified by ownership of the equity
Attributable to equity owners of the Company1,746,280,1321,146,767,033
Minority interests888,981,375660,407,857
Other comprehensive income, net of tax
Attributable to equity owners of the Company4(38)270,162,5511,126,132,911
Other comprehensive income that will not be reclassified to profit or loss
Changes in fair value of investments in other equity instruments251,985,0621,123,802,101
Other comprehensive income that cannot be subsequently transferred to profit or loss under the equity method18,578,8412,110,342
Other comprehensive income items which can be reclassified subsequently to profit or loss
Other comprehensive income that can be subsequently transferred to profit or loss under the equity method(401,352)220,468
Total comprehensive income2,905,424,0582,933,307,801
Attributable to shareholders of the Company2,016,442,6832,272,899,944
Attributable to minority interests888,981,375660,407,857
Earnings per share
Basic earnings per share (RMB Yuan)4(56)0.330.22
Diluted earnings per share (RMB Yuan)4(56)0.330.22

The accompanying notes form an integral part of these financial statements.

Legal representativePrincipal in charge of accountingHead of accounting department
Wang JinLiu WeiMeng Fei

COMPANY INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

Item

ItemNote20202019
Revenue15(4)1,221,597,0272,209,770,578
Less:Cost of sales15(4)(1,161,627,038)(2,092,814,820)
Taxes and surcharges(14,120,096)(18,252,419)
Selling and distribution expenses(2,949,082)(2,072,707)
General and administrative expenses(149,616,128)(124,632,105)
Research and development expenses(9,814,665)(961,443)
Financial expenses(212,937,750)(206,287,649)
Including: Interest expenses217,096,206207,829,042
Interest income5,070,4935,256,138
Add:Other income10,079,69913,186,290
Investment income15(5)1,576,864,1271,074,476,943
Including: Share of profit of associates and joint ventures230,001,91758,731,138
Less:(Losses on)/Reversal of credit impairment15(6)(37,463)48,617,737
Asset impairment losses15(7)(162,336,342)(71,317,168)
Add:Gains on disposal of assets157,963-
Operating profit1,095,260,252829,713,237
Add:Non-operating income23,324,9834,222,347
Less:Non-operating expenses(5,196,433)(2,538,378)
Total profit1,113,388,802831,397,206
Less:Income tax expenses(4,375,956)(61,131,363)
Net profit1,109,012,846770,265,843
Classified by continuity of operations
Net profit from continuing operations1,109,012,846770,265,843
Net profit from discontinued operations--
Other comprehensive income, net of tax270,162,5511,126,132,911
Other comprehensive income that will not be reclassified to profit or loss
Changes in fair value of investments in other equity instruments251,985,0621,123,802,101
Other comprehensive income that cannot be subsequently transferred to profit or loss under the equity method18,578,8412,110,342
Other comprehensive income items which can be reclassified subsequently to profit or loss
Other comprehensive income that can be subsequently transferred to profit or loss under the equity method(401,352)220,468
Total comprehensive income1,379,175,3971,896,398,754

The accompanying notes form an integral part of these financial statements.

Legal representativePrincipal in charge of accountingHead of accounting department
Wang JinLiu WeiMeng Fei

CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

Item

ItemNote20202019
Cash flows from operating activities
Cash received from sales of goods or rendering of services30,852,391,66033,450,306,969
Refund of taxes and surcharges120,199,53313,549,274
Cash received relating to other operating activities4(57)(a)165,402,170195,328,767
Sub-total of cash inflows31,137,993,36333,659,185,010
Cash paid for goods and services(19,797,671,869)(20,616,807,058)
Cash paid to and on behalf of employees(1,820,849,783)(1,880,454,324)
Payments of taxes and surcharges(2,514,991,463)(2,097,461,395)
Cash paid relating to other operating activities4(57)(b)(723,699,079)(791,779,121)
Sub-total of cash outflows(24,857,212,194)(25,386,501,898)
Net cash flows from operating activities4(58)(a)6,280,781,1698,272,683,112
Cash flows from investing activities
Cash received from disposal of investments-48,647,647
Cash received from returns on investments482,893,552239,149,433
Net cash received from disposal of fixed assets, intangible assets and other long-term assets326,388,59173,007,745
Cash received relating to other investing activities4(57)(c)33,734,619-
Sub-total of cash inflows843,016,762360,804,825
Cash paid to acquire fixed assets, intangible assets and other long-term assets
(7,978,451,246)(4,818,610,061)
Cash paid to acquire investments(796,075,842)(328,162,240)
Net cash paid to acquire subsidiaries and other business units4(58)(b)(40,880,216)-
Cash paid relating to other investing activities4(57)(d)(141,792,496)-
Sub-total of cash outflows(8,957,199,800)(5,146,772,301)
Net cash flows used in financing activities(8,114,183,038)(4,785,967,476)

CONSOLIDATED CASH FLOW STATEMENT (CONT'D)

FOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

Item

ItemNote20202019
Cash flows from financing activities
Cash received from capital contributions4,400,000526,340,000
Including: Cash received from capital contributions by minority shareholders of subsidiaries4,400,000526,340,000
Cash received from borrowings23,540,514,63914,527,600,487
Cash received from issuance of debentures1,499,471,698-
Cash received relating to other financing activities4(57)(e)-100,000,000
Sub-total of cash inflows25,044,386,33715,153,940,487
Cash repayments of borrowings(19,538,646,624)(16,563,416,551)
Cash payments for distribution of dividends, profits or interest expenses(2,808,213,989)(2,273,764,488)
Including: Cash payments for dividends or profit to minority interests of subsidiaries(547,811,816)(415,937,941)
Cash paid relating to other financing activities4(57)(f)(180,145,921)(294,216,260)
Sub-total of cash outflows(22,527,006,534)(19,131,397,299)
Net cash flows from/(used in) financing activities2,517,379,803(3,977,456,812)
Effect of foreign exchange rate changes on cash and cash equivalents(27)253
Net increase/(decrease) in cash and cash equivalents4(58)(a)683,977,907(490,740,923)
Add: Cash and cash equivalents at the beginning of the year5,079,641,9695,570,382,892
Cash and cash equivalents at the end of the year4(58)(c)5,763,619,8765,079,641,969

The accompanying notes form an integral part of these financial statements.

Legal representativePrincipal in charge of accountingHead of accounting department
Wang JinLiu WeiMeng Fei

COMPANY CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

Item

Item20202019
Cash flows from operating activities
Cash received from sales of goods or rendering of services1,418,456,7952,565,249,720
Cash received relating to other operating activities37,621,88213,481,620
Sub-total of cash inflows1,456,078,6772,578,731,340
Cash paid for goods and services(920,870,342)(1,804,883,929)
Cash paid to and on behalf of employees(314,966,765)(321,850,372)
Payments of taxes and surcharges(81,690,906)(105,174,506)
Cash paid relating to other operating activities(68,583,529)(48,028,306)
Sub-total of cash outflows(1,386,111,542)(2,279,937,113)
Net cash flows from operating activities69,967,135298,794,227
Cash flows from investing activities
Cash received from disposal of investments66,460,000383,647,647
Cash received from returns on investments1,761,030,7301,188,744,289
Net cash received from disposal of fixed assets, intangible assets and other long-term assets2,420,1903,081,801
Sub-total of cash inflows1,829,910,9201,575,473,737
Cash paid to acquire fixed assets, intangible assets and other long-term assets(20,279,906)(31,307,163)
Cash paid to acquire investments(2,654,476,711)(2,184,276,740)
Net cash paid to acquire subsidiaries(49,680,900)-
Sub-total of cash outflows(2,724,437,517)(2,215,583,903)
Net cash flows used in investing activities(894,526,597)(640,110,166)
Cash flows from financing activities
Cash received from borrowings7,098,860,6674,500,000,000
Cash received from issuance of debentures1,499,471,698-
Sub-total of cash inflows8,598,332,3654,500,000,000
Cash repayments of borrowings(6,840,306,500)(3,800,000,000)
Cash payments for distribution of dividends, profits or interest expenses(819,130,127)(518,785,791)
Cash paid relating to other financing activities(794,907)(971,697)
Sub-total of cash outflows(7,660,231,534)(4,319,757,488)
Net cash flows from financing activities938,100,831180,242,512
Effect of foreign exchange rate changes on cash and cash equivalents(27)253
Net increase/(decrease) in cash and cash equivalents113,541,342(161,073,174)
Add: Cash and cash equivalents at the beginning of the year224,504,289385,577,463
Cash and cash equivalents at the end of the year338,045,631224,504,289

The accompanying notes form an integral part of these financial statements.

Legal representativePrincipal in charge of accountingHead of accounting department
Wang JinLiu WeiMeng Fei

CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

NoteAttributable to equity owners of the Company
Share capitalCapital surplusOther comprehensive incomeSurplus reserveUndistributed profitsMinority interestsTotal owners' equity
Balance at 1 January 20205,250,283,9865,096,918,1741,676,143,0448,245,767,5935,909,128,2808,011,444,28934,189,685,366
Movements for the year ended 31 December 2020
Total comprehensive income
Net profit----1,746,280,132888,981,3752,635,261,507
Other comprehensive income4(38)--270,162,551---270,162,551
Total comprehensive income for the year--270,162,551-1,746,280,132888,981,3752,905,424,058
Capital contribution and withdrawal by owners
Others-----20,805,56920,805,569
Profit distribution
Appropriation to surplus reserve4(39)---269,593,045(269,593,045)--
Distribution to shareholders4(40)(a)----(630,034,078)(547,811,816)(1,177,845,894)
Share of interests in associates in proportion to the shareholding4(37)-(194,654,260)----(194,654,260)
Balance at 31 December 20205,250,283,9864,902,263,9141,946,305,5958,515,360,6386,755,781,2898,373,419,41735,743,414,839

CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT’D)

FOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

NoteAttributable to equity owners of the Company
Share capitalCapital surplusOther comprehensive incomeSurplus reserveUndistributed profitsMinority interestsTotal owners' equity
Balance at 1 January 20195,250,283,9865,102,846,886550,010,1337,834,155,1435,490,006,1407,290,519,35931,517,821,647
Movements for the year ended 31 December 2019
Total comprehensive income
Net profit----1,146,767,033660,407,8571,807,174,890
Other comprehensive income4(38)--1,126,132,911---1,126,132,911
Total comprehensive income for the year--1,126,132,911-1,146,767,033660,407,8572,933,307,801
Capital contribution and withdrawal by owners
Others-----476,340,000476,340,000
Profit distribution
Appropriation to surplus reserve4(39)---411,612,450(411,612,450)--
Distribution to shareholders4(40)(a)----(315,017,039)(415,937,941)(730,954,980)
Share of interests in associates in proportion to the shareholding4(37)-(5,813,698)--(1,015,404)-(6,829,102)
Transactions with minority shareholders4(37)-(115,014)---115,014-
Balance at 31 December 20195,250,283,9865,096,918,1741,676,143,0448,245,767,5935,909,128,2808,011,444,28934,189,685,366

The accompanying notes form an integral part of these financial statements.

Legal representativePrincipal in charge of accountingHead of accounting department
Wang JinLiu WeiMeng Fei

COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

NoteShare capitalCapital surplusOther comprehensive incomeSurplus reserveUndistributed profitsTotal owners' equity
Balance at 1 January 20205,250,283,9865,599,980,9031,676,143,0448,245,767,5934,514,862,48825,287,038,014
Movements for the year ended 31 December 2020
Total comprehensive income
Net profit----1,109,012,8461,109,012,846
Other comprehensive income4(38)--270,162,551--270,162,551
Total comprehensive income for the year--270,162,551-1,109,012,8461,379,175,397
Profit distribution
Appropriation to surplus reserve4(39)---269,593,045(269,593,045)-
Distribution to shareholders4(40)(a)----(630,034,078)(630,034,078)
Share of interests in associates in proportion to the shareholding4(37)-(194,654,260)---(194,654,260)
Balance at 31 December 20205,250,283,9865,405,326,6431,946,305,5958,515,360,6384,724,248,21125,841,525,073

COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT'D)

FOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

NoteShare capitalCapital surplusOther comprehensive incomeSurplus reserveUndistributed profitsTotal owners' equity
Balance at 1 January 20195,250,283,9865,605,794,601550,010,1337,834,155,1434,472,241,53823,712,485,401
Movements for the year ended 31 December 2019
Total comprehensive income
Net profit----770,265,843770,265,843
Other comprehensive income4(38)--1,126,132,911--1,126,132,911
Total comprehensive income for the year--1,126,132,911-770,265,8431,896,398,754
Profit distribution
Appropriation to surplus reserve4(39)---411,612,450(411,612,450)-
Distribution to shareholders4(40)(a)----(315,017,039)(315,017,039)
Share of interests in associates in proportion to the shareholding4(37)-(5,813,698)--(1,015,404)(6,829,102)
Balance at 31 December 20195,250,283,9865,599,980,9031,676,143,0448,245,767,5934,514,862,48825,287,038,014

The accompanying notes form an integral part of these financial statements.

Legal representativePrincipal in charge of accountingHead of accounting department
Wang JinLiu WeiMeng Fei

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

1General information
Guangdong Electric Power Development Co., Ltd. (“the Company”) is a limited liability company jointly established by Guangdong Electric Power Holding Company, China Construction Bank, Guangdong Province Trust Investment Company, Guangdong Power Development Co., Ltd., Guangdong International Trust and China Guangfa Bank (currently named as Guangdong Guangkong Group Co., Ltd.). The address of the Company’s registered office and head office is F33~F36 South Tower Building of Yudean Square on 2nd Tianhe East Road, Guangzhou, Guangdong Province, the People’s Republic of China (“the PRC”). The Company’s parent company is Guangdong Energy Group Co., Ltd. (“GEGC”, previously Guangdong Province Yudean Group Co., Ltd.) and its ultimate controlling shareholder is the State-owned Assets Supervision and Administration Commission of the People’s Government of Guangdong Province.
The Company’s RMB ordinary shares (“A-share”) and domestic listed foreign shares (“B-share”) issued were listed for transactions in Shenzhen Stock Exchange respectively on 26 November 1993 and 28 June 1995. As at 31 December 2020, the total share capital of the Company was RMB 5,250,283,986 with par value of RMB 1 per share.
The Company and its subsidiaries (collectively referred to as “the Group”) are principally engaged in the businesses of developing and operating electric power plants in Guangdong Province, Yunnan Province, Hunan Province and Guangxi Zhuang Autonomous Region of the PRC. For the information of the Company’s major subsidiaries included in the consolidation scope in the current year, please refer to Note 6(1).
The financial statement have been authorised for issue by the Board of Directors of the Company on 8 April 2021.
2Summary of significant accounting policies and accounting estimates
The Group determines specific accounting policies and accounting estimates based on the characteristics of production and operation, which are mainly reflected in the measurement of expected credit losses (“ECLs”) of receivables and contract assets (Note 2(9)), costing of inventory (Note 2(10)), fixed asset depreciation and intangible asset amortisation (Notes 2(13), 2(16)), impairment of long-term assets (Note 2(18)), timing of revenue recognition (Note 2(22)), deferred tax assets and deferred tax liabilities (Note 2(24)), etc. Details of the Group’s critical judgements, critical accounting estimates and key assumptions used in determining significant accounting policies are set forth in Note 2(27).
(1)Basis of preparation
The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter collectively referred to as “the Accounting Standards for Business Enterprises” or “CASs”) and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No. 15 - General Rules on Financial Reporting issued by the China Securities Regulatory Commission.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(1)Basis of preparation (Cont’d)
As at 31 December 2020, the Group’s net current liabilities amounted to RMB 11,825 million, capital commitments contracted for by the Group amounted to RMB 15,286 million, and capital commitments amounted to RMB 392 million, among which the capital expenditure due within one year amounted to RMB 7,882 million. Therefore, the Group is to some extent exposed to liquidity risk. The reason for net current liabilities is that a portion of the Group’s capital expenditure is backed by short-term borrowings and funds in hand. Management of the Company plans to take the following measures to ensure that the Group can continuously obtain sufficient working capital to liquidate debts due within 12 months starting from 31 December 2020, therefore, the financial statements are prepared on a going concern basis. (a) The Group continuously generates profit after its generator sets have successively been put into production in recent years. Management expects stable cash inflows from operating activities in the future; and
(b) The Group maintains good relations of long-term cooperation with financial institutions (including the Company’s associate Guangdong Energy Group Finance Co., Ltd. (“Energy Group Finance Company”)) in order to obtain sufficient financing credit lines. As at 31 December 2020, the Group’s available credit line approved by financial institutions and government departments amounted to approximately RMB 49,673 million, with RMB 20,092 million from Energy Group Finance Company, RMB 20,881 million from other commercial banks and financial institutions, RMB 4,000 million from issuance of perpetual bonds approved by the National Development and Reform Commission, RMB 3,900 million from issuance of corporate bonds approved by the China Securities Regulatory Commission, and RMB 800 million of quota of medium-term notes financing obtained after the registration in the Interbank Market in China. Among the Group’s available credit line from financial institutions, approximately RMB 14,318 million is due before 31 December 2021. Management has communicated with the financial institutions and hence expected the credit line due before 31 December 2021 to renew the term for another 12 months.
(2)Statement of compliance with the Accounting Standard for Business Enterprises
The financial statements of the Group and the Company for the year ended 31 December 2020 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present the consolidated and company’s financial position of the Group and the Company as at 31 December 2020 and their financial performance, cash flows and other information for the year then ended.
(3)Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(4)Recording currency
The recording currency is Renminbi (RMB).

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

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2Summary of significant accounting policies and accounting estimates (Cont’d)
(5)Business combinations
(a)Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the Group in a business combination are measured at the carrying amount. If the acquiree is acquired from a third party by the ultimate controlling party in a prior year, the consideration paid and net assets obtained by the Group are measured based on the carrying amounts of the acquiree’s assets and liabilities (including the goodwill arising from the acquisition of the acquiree by the ultimate controlling party) presented in the consolidated financial statements of the ultimate controlling party. The difference between the carrying amount of the net assets obtained from the combination and the carrying amount of the consideration paid for the combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
(b)Business combinations involving enterprises not under common control
The combination cost and identifiable net assets obtained by the Group in a business combination are measured at fair value at the acquisition date. Where the cost of combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
(6)Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date on which such control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(6)Preparation of consolidated financial statements (Cont'd)
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ shareholders' equity and the portion of subsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to the Company are recognised as minority interests, net profit attributed to minority interests and total comprehensive incomes attributed to non-controlling interests and presented separately in the consolidated financial statements under shareholders' equity, net profits and total comprehensive income respectively. Where the loss for the current period attributable to the minority shareholders of the subsidiaries exceeds the share of the minority interests in the opening balance of equity, the excess is deducted against minority interests. Unrealised profits and losses resulting from the sale of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to owners of the parent. Unrealised profits and losses resulting from the sale of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to owners of the parent and minority interest income in accordance with the allocation proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to owners of the parent and minority interest income in accordance with the allocation proportion of the parent in the selling subsidiary. If the accounting treatment of a transaction is inconsistent in the financial statements at the Group level and at the Company or its subsidiary level, adjustment will be made from the perspective of the Group.
(7)Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(8)Foreign currency translation
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(9)Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions of the instrument.
(a)Financial assets
(i)Classification and measurement
Based on the business model for financial asset management and the contractual cash flow characteristics of financial assets, the Group classifies the financial assets as: a) financial assets measured at amortised cost; b) financial assets at fair value through other comprehensive income; c) financial assets at fair value through profit or loss.
The financial assets are measured at fair value at initial recognition. Related transaction costs that are attributable to the acquisition of the financial assets are included in the initially recognised amounts, except for the financial assets at fair value through profit or loss, the related transaction costs of which are recognised directly in profit or loss for the current period. Accounts receivable arising from sales of products or rendering of services (excluding or without regard to significant financing components) are initially recognised at the consideration that is entitled to be charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial liabilities from the perspective of the issuer, and are measured in the following ways:
Measured at amortised cost:
The Group’s business model for financial asset management aims to receive contractual cash flows. The contractual cash flow characteristics of such financial assets are consistent with basic loan arrangement, which means the cash flow generated at certain date is only the payment for the principal and the corresponding interest based on unpaid principal. The interest income of such financial assets is recognised using the effective interest method. Such financial assets are mainly including cash at bank and on hand, accounts receivable, other receivables, long-term receivables, etc. Long-term receivables that are due within one year (inclusive) as from the balance sheet date are included in the current portion of non-current assets.
Equity instruments
Investments in equity instruments, over which the Group has no control, joint control or significant influence, are measured at fair value through profit or loss under financial assets held for trading. In addition, a portion of certain investments in equity instruments not held for trading are designated as financial assets at fair value through other comprehensive income under other investments in equity instruments. The relevant dividend income of such financial assets is recognised in profit or loss for the current period.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(9)Financial instruments (Cont'd)
(a)Financial assets (Cont’d)
(ii)Impairment
The Group recognises the loss provision based on ECLs for financial assets and contract assets measured at amortised cost.
Giving consideration to reasonable and supportable information on past events, current conditions and forecasts of future economic conditions, as well as the default risk weight, the Group recognises the ECL as the probability-weighted amount of the present value of the difference between the cash flows receivable from the contract and the cash flows expected to collect.
As at each balance sheet date, the ECL of financial instruments at different stages is measured respectively. 12-month ECL provision is recognised for financial instruments in Stage 1 that have not had a significant increase in credit risk since initial recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that have had a significant increase in credit risk yet without credit impairment since initial recognition; and lifetime ECL provision is recognised for financial instruments in Stage 3 that have had credit impairment since initial recognition.
For the financial instruments with lower credit risk on the balance sheet date, the Group assumes there is no significant increase in credit risk since initial recognition and recognises the 12-month ECL provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the interest income by applying the effective interest rate to the gross carrying amount (before deduction of the impairment provision). For the financial instrument in Stage 3, the interest income is calculated by applying the effective interest rate to the amortised cost (after deduction of the impairment provision from the gross carrying amount).
For accounts receivable and contract assets from operating activities such as sales of goods and rendering of service, regardless of whether there is a significant financing component, the Group measures the loss provision using lifetime ECL.
In case the ECL of an individually assessed financial asset cannot be evaluated with reasonable cost, the Group divides the receivables into certain groupings based on credit risk characteristics, and calculates the ECL for the groupings. Basis for determining groupings and provisions is as follows:
Accounts receivable grouping 1Receivables from sales of electricity
Accounts receivable grouping 2Receivables from related parties
Accounts receivable grouping 3Other accounts receivable
Contract assets grouping 1Receivables from related parties
Contract assets grouping 2Other contract assets
Other receivables grouping 1Project expenses paid on behalf, reserves receivable and other receivables

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(9)Financial instruments (Cont'd)
(a)Financial assets (Cont’d)
(ii)Impairment (Cont’d)
Based on the overdue days and lifetime ECL rate, the Group calculates the ECLs of accounts receivable that are classified into groupings with consideration to historical credit losses experience, the current conditions and forecasts of future economic conditions. Based on the exposure at default and the 12-month/lifetime ECL rate, the Group calculates the ECLs of other receivables and long-term receivables that are classified into groupings with consideration to historical credit losses experience, the current conditions and forecasts of future economic conditions.
The Group recognises the loss provision made or reversed into profit or loss for the current period.
(iii)Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to receive the cash flows from the financial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee; or (3) the financial asset has been transferred and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset. When a financial asset is derecognised, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that are previously recognised directly in other comprehensive income is recognised in profit or loss for the current period, except for those as investments in other equity instruments, the difference aforementioned is recognised in retained earnings instead.
(b)Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair value through profit or loss at initial recognition. Financial liabilities of the Group mainly comprise financial liabilities at amortised cost, including notes payable, accounts payable, other payables, borrowings, debentures payable, etc. Such financial liabilities are initially recognised at fair value, net of transaction costs incurred, and subsequently measured using the effective interest method. Financial liabilities that are due within one year (inclusive) are classified as current liabilities; those with maturities over one year but are due within one year (inclusive) as from the balance sheet date are classified as current portion of non-current liabilities. Others are classified as non-current liabilities.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(9)Financial instruments (Cont'd)
(b)Financial liabilities (Cont’d)
A financial liability is derecognised or partly derecognised when the underlying present obligation is discharged or partly discharged. The difference between the carrying amount of the derecognised part of the financial liability and the consideration paid is recognised in profit or loss for the current period.
(c)Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. In valuation, the Group adopts valuation techniques applicable in the current situation and supported by adequate available data and other information, selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or liabilities by market participants, and gives priority to the use of relevant observable inputs. When relevant observable inputs are not available or feasible, unobservable inputs are adopted.
(10)Inventories
(a)Classification
Inventories mainly comprise fuel and spare parts, and are measured at the lower of cost and net realisable value.
(b)Valuation of inventories
Cost of fuel is calculated using the weighted average method. Spare parts are amortised in full amount when issued for use.
(c)Basis for determining net realisable values of inventories and method for making provision for decline in the value of inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying amounts of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale and related taxes.
(d)The Group adopts the perpetual inventory system.
(e)Amortisation methods of low-value consumables
Low-value consumables are amortised in full amount.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(11)Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its joint ventures and associates.
A subsidiary is an investee over which the Company is able to exercise control. A joint venture is a joint arrangement which is structured through a separate vehicle over which the Group has joint control together with other parties and only has rights to the net assets of the arrangement based on legal forms, contractual terms and other facts and circumstances. An associate is the investee over which the Group has significant influence by participating in the financial and operating policy decisions.
Investments in subsidiaries are presented in the Company’s financial statements using the cost method, and are adjusted to the equity method when preparing the consolidated financial statements, and investments in joint ventures and associates are accounted for using the equity method.
(a)Determination of investment cost
For long-term equity investments acquired through a business combination involving enterprises under common control, the investment cost shall be the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at the combination date; for long-term equity investments acquired through a business combination involving enterprises not under common control, the investment cost shall be the combination cost. For long-term equity investments acquired not through a business combination: for long-term equity investments acquired by payment in cash, the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities issued.
(b)Subsequent measurement and recognition of profit or loss
Long-term equity investments accounted for using the cost method are measured at the initial investment cost. Cash dividends or profit distribution declared by an investee is recognised as investment income in profit or loss for the current period.
For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment is initially measured at that cost; where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The Group does not recognise further losses when the carrying amounts of the long-term equity investment together with any long-term interests that, in substance, form part of the Group’s net investment in investees are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions are satisfied, the Group continues recognising the investment losses and the provisions at the amount it expects to undertake. The Group’s share of the changes in investee’s owner's equity other than those arising from the net profit or loss, other comprehensive income and profit distribution is recognised in capital surplus with a corresponding adjustment to the carrying amounts of the long-term equity investment. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by the investees. Unrealised gains or losses on transactions between the Group and its investees are eliminated to the extent of the Group’s equity interest in the investees, based on which the investment income or losses are recognised. Any losses resulting from transactions between the Group and its investees, which are attributable to asset impairment losses are not eliminated.
2Summary of significant accounting policies and accounting estimates (Cont’d)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

(11)

(11)Long-term equity investments (Cont’d)
(c)Basis for determining existence of control, jointly control or significant influence over investees
Control is the power over investees that can bring variable returns through involvement in related activities of investees and the ability to influence the returns by using such power over investees.
Joint control is the agreed sharing of control over an arrangement, and the decision of activities relating to such arrangement requires the unanimous consent of the Group and other parties sharing control.
Significant influence is the power to participate in making the decisions on financial and operating policies of the investee, but is not control or joint control over making those policies.
(d)Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries, joint ventures and associates are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 2(18)).
(12)Investment properties
Investment properties, including land use rights that have already been leased out and buildings that are held for the purpose of leasing, are measured initially at cost. Subsequent expenditures incurred in relation to an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in profit or loss for the period in which they are incurred.
The Group adopts the cost model for subsequent measurement of investment properties. Buildings and land use rights are depreciated or amortised to their estimated net residual values over their estimated useful lives. The estimated useful lives, the net residual values that are expressed as a percentage of cost and the annual depreciation (amortisation) rates of investment properties are as follows:
Estimated useful livesEstimated net residual valuesAnnual depreciation (amortisation) rates
Buildings20 to 40 years0% to 5%2.38% to 4.75%
When an investment property is transferred to owner-occupied property, it is reclassified to fixed asset with the carrying amount determined at the carrying amount of the investment property at the date of the transfer.
The investment property’s estimated useful life, net residual value and depreciation (amortisation) method applied are reviewed and adjusted as appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sales, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(13)Fixed assets
(a)Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, power generation equipment, motor vehicles, and other equipment.
Fixed assets are recognised when it is probable that the related economic benefits will flow into the Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition. The fixed assets contributed by the State shareholders at the reorganisation of the Company into a corporation are recognised based on the evaluated amounts as approved by the state-owned assets administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss for the period in which they are incurred.
(b)Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated net residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows:
Estimated useful livesEstimated net residual valuesAnnual depreciation rates
Buildings10 to 50 years5%1.90% to 9.50%
Power generation equipment5 to 25 years0% to 5%3.80% to 20.00%
Motor vehicles5 to 15 years0% to 5%6.33% to 20.00%
Other equipment5 to 25 years0% to 5%3.80% to 20.00%
The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed, and adjusted as appropriate at each year-end.
(c)The carrying amounts of fixed assets are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 2(18)).

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(13)Fixed assets (Cont’d)
(d)Basis for identification of fixed assets held under finance leases and related measurement
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. The leased asset is recognised at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The difference between the recorded amount of the leased asset and the minimum lease payments is accounted for as unrecognised finance charge (Note 2(25)(b)).
Fixed assets held under a finance lease is depreciated on a basis consistent with the depreciation policy adopted for fixed assets that are self-owned. When a leased asset can be reasonably determined that its ownership will be transferred at the end of the lease term, it is depreciated over its estimated useful life; otherwise, the leased asset is depreciated over the shorter period of the lease term and its estimated useful life.
(e)Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
(14)Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the construction in progress ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation is charged starting from the following month. The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below its carrying amount (Note 2(18)).
(15)Borrowing costs
The borrowing costs that are directly attributable to acquisition and construction of an asset that needs a substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
For special borrowings for the acquisition and construction of qualifying assets, the capitalised amount of the special borrowings is determined by the interest expenses incurred in the period less interest income of the unused borrowings deposited at bank or investment income from temporary investment.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(15)Borrowing costs (Cont’d)
The capitalised amount of general borrowings intended to be used for the acquisition and construction of qualifying assets is determined by the weighted average of the excess of accumulated capital expenditure over capital expenditure of the special borrowings multiplied by the weighted average effective interest rate of the utilised general borrowings. The effective interest rate is the rate at which the future cash flows of the borrowings over the expected lifetime or a shorter applicable period are discounted into the initial recognised amount of the borrowings.
(16)Intangible assets
Intangible assets include land use rights, sea use rights and software, and are measured at cost. The intangible assets contributed by the state-owned shareholders upon the reorganisation of the Group into a corporation are recognised based on the evaluated amounts as approved by the state-owned assets administration department.
(a)Land use rights and sea use rights
Land use rights are amortised on the straight-line basis over their approved use period of 20 to 70 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets.
Sea use rights are amortised on the straight-line basis over their approved use period of 50 years.
(b)Other intangible assets
Fixed assets other than land use rights and sea use rights are amortised on a straight-line-basis over the expected useful lives of 2 to 25 years.
(c)Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(16)Intangible assets (Cont’d)
(d)Research and development
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure on the development phase based on its nature and whether there is material uncertainty that the research and development activities can form an intangible asset at the end of the project.
Expenditure on the research phase is recognised in profit or loss in the period in which it is incurred. Expenditure on the development phase is capitalised only if all of the following conditions are satisfied:
? management intends to complete the intangible asset, and use or sell it; ? it can be demonstrated how the intangible asset will generate economic benefits: products with the application of intangible assets or the intangible assets themselves can prove to have market value, intangible assets for internal use application can prove to be of usefulness; ? there are adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset; ? it is technically feasible to complete the intangible asset so that it will be available for use or sale; and ? the expenditure attributable to the intangible asset during its development phase can be reliably measured.
Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they are incurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalised expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at the date that the asset is ready for its intended use.
(e)Impairment of intangible assets
The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 2(18)).
(17)Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets held under operating leases, and other expenditures that have been incurred but should be recognised as expenses over more than one year in the current and subsequent years. Long-term prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(18)Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment properties that are measured at cost and long-term equity investments in subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset may be impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an asset impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows. Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying amount of goodwill is allocated to the related asset group or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or a group of asset groups, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset group or group of asset groups in proportion to the carrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
(19)Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for service rendered by employees or for termination of employment relationship, which include short-term employee benefits, post-employment benefits, termination benefits and other long-term employee benefits.
(a)Short-term employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for service rendered by employees or for termination of employment relationship, which include short-term employee benefits, post-employment benefits, termination benefits and other long-term employee benefits. The short-term employee benefits actually occurred are recognised as a liability in the accounting period in which the service is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Non-monetary benefits are measured at fair value.
(b)Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Group's post-employment benefits mainly include basic pensions, unemployment insurance and supplementary pensions, and all of them belong to the defined contribution plans; non-planned expenses provided to retired employees fall under defined benefit plans.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(19)Employee benefits (Cont'd)
(b)Post-employment benefits (Cont'd)
Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to the bases and percentage prescribed by the relevant local authorities. When employees retire, the local labour and social security authorities are obliged to pay the basic pensions to them.
Supplementary pensions
The Group purchases supplementary pensions for employees, and pays insurance premium according to the policies of GEGC.
The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
Defined benefit plan
For defined benefit plan, the Group used the projected unit credit method and includes the obligation of the defined benefit plan in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the period. The cost of employee benefits arising from defined benefit plans are classified into the following parts:
— service cost (including current service cost as well as gains and losses on curtailments and settlements); — net interest expenses on net liabilities of the defined benefit plan (including interest expenses for obligations of the defined benefit plan); and — Changes arising from remeasurement on net liabilities of defined benefit plans
Service cost and net interest expenses on net liabilities of defined benefit plans are included in profit or loss for the current period. Changes arising from remeasurement on net liabilities of defined benefit plans (including actuarial gains or losses) are included in other comprehensive income.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(19)Employee benefits (Cont'd)
(c)Termination benefits
The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss for the current period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that involves the payment of termination benefits.
Early retirement benefits
The Group offers early retirement benefits to those employees who accept early retirement arrangements. The early retirement benefits refer to the salaries and social security contributions to be paid to and for the employees who accept voluntary retirement before the normal retirement date prescribed by the State, as approved by management. The Group pays early retirement benefits to those early retired employees from the early retirement date until the normal retirement date. The Group accounts for the early retirement benefits in accordance with the treatment for termination benefits, in which the salaries and social security contributions to be paid to and for the early retired employees from the off-duty date to the normal retirement date are recognised as liabilities with a corresponding charge to the profit or loss for the current period. The differences arising from the changes in the respective actuarial assumptions of the early retirement benefits and the adjustments of benefit standards are recognised in profit or loss in the period in which they occur.
The termination benefits expected to be settled within one year since the balance sheet date are classified as current liabilities.
(20)Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are approved by the shareholders’ meeting.
(21)Provisions
Provisions for product warranties, onerous contracts, etc. are recognised when the Group has a present obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The Group recognises the loss provision of financial guarantee contracts which provision is based on ECL.
The provisions expected to be settled within one year since the balance sheet date are classified as current liabilities.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(22)Revenue recognition
The Group recognises revenue at the amount of the consideration which the Group is expected to receive when the customer obtains control over relevant goods or services.
(a)Revenue from sales of electricity and heat energy
Revenue is recognised when electricity and heat energy are supplied to grid companies or customers, and grid companies or customers obtain control over electricity.
(b)Revenue from sales of by-products
Revenue from the sales of goods is recognised when the Group transfers by-products (such as coal ash) produced by electricity generations to the designated delivery place pursuant to the contract or agreement, the recipient resource utilisation confirms receipt and they obtain control over the by-products.
(c)Provision of electric power transaction service
For the electric power transaction service provided by the Group to external parties, upon the receiving of the service, revenue is recognised based on the difference between the purchase price and the selling price of electricity.
(d)Rendering of services
The Group provides maintenance services to external parties. The related revenue is recognised based on the stage of completion within a certain period, which is determined based on proportion of costs incurred to date to the estimated total costs. On the balance sheet date, the Group re-estimates the stage of completion to reflect the actual status of contract performance.
When the Group recognises revenue based on the stage of completion, the amount with unconditional collection right obtained by the Group is recognised as accounts receivable, and the rest is recognised as contract assets. Meanwhile, loss provision for accounts receivable and contract assets are recognised on the basis of ECLs (Note 2(9)). If the contract price received or receivable exceeds the amount for the completed service, the excess portion will be recognised as contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis.
Contract costs include contract performance costs and contract acquisition costs. The costs incurred by the Group for the rendering of maintenance services are recognised as contract performance costs and are carried forward to the cost of main operations based on the stage of completion when associated revenue is recognised.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

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2Summary of significant accounting policies and accounting estimates (Cont’d)
(23)Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the government, including tax return, financial subsidy, etc.
Government grants are recognised when the grants can be received and the Group can comply with all attached conditions. If a government grant is a monetary asset, it will be measured at the amount received or receivable. If a government grant is a non-monetary asset, it will be measured at its fair value. If it is unable to obtain its fair value reliably, it will be measured at its nominal amount.
Government grants related to assets refer to government grants which are obtained by the Group for the purposes of purchase, construction or acquisition of the long-term assets. Government grants related to income refer to the government grants other than those related to assets.
Government grants related to assets are recorded as deferred income and recognised in profit or loss on a reasonable and systemic basis over the useful lives of the assets.
Government grants related to daily operation that compensate future costs, expenses or losses are recorded as deferred income and recognised in profit or loss in reporting the related costs, expenses or losses; government grants related to income that compensate incurred costs, expenses or losses are recognised in profit or loss directly in the current period. For other government grants related to income that compensate the future costs, expenses or losses are recorded as deferred income and deducted against related costs in reporting the related costs, expenses or losses; government grants related to income that compensate the incurred costs, expenses or losses are deducted against related costs. The Group applies the presentation method consistently to the similar government grants in the financial statements.
Government grants that are related to ordinary activities are included in operating profit, otherwise, they are recorded in non-operating income or expenses.
For the policy loans with favourable interest rates, the Group records the loans at the actual amounts and calculates the interests by loan principals and the favourable interest rates.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(24)Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries, associates and joint ventures will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
? the deferred tax assets and liabilities are related to the same tax payer within the Group and the same taxation authority; and, ? that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

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2Summary of significant accounting policies and accounting estimates (Cont’d)
(25)Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is a lease other than a finance lease.
(a)Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets, or charged as an expense for the current period. Rental income from an operating lease is recognised on a straight-line basis over the period of the lease.
For the rental waivers as a result of COVID-19 and for the period ended 30 June 2021 only, the Group applies the practical expedient and records the waivers in profit or loss in the waiving period.
(b)Finance leases
The leased asset is recognised at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The difference between the recorded amount of the leased asset and the minimum lease payments is accounted for as unrecognised finance charge and is amortised using the effective interest method over the period of the lease. A long-term payable is recorded at the amount equal to the minimum lease payments less the unrecognised finance charge.
(26)Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

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2Summary of significant accounting policies and accounting estimates (Cont’d)
(27)Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(a)Critical judgements in applying the accounting policies
(i)Classification of financial assets
Significant judgements made by the Group in the classification of financial assets include business model and analysis on contractual cash flow characteristics.
The Group determines the business model for financial asset management on the grouping basis, and factors to be considered include the methods for evaluating financial asset performance and reporting the financial asset performance to key management personnel, the risks affecting financial asset performance and corresponding management methods, the ways in which related business management personnel are remunerated, etc.
The major judgement in determining whether the contractual cash flow characteristics of the financial assets is in consistency of the borrowing arrangement includes: whether there is a change in the amount of principal or the timing of the duration when repayment in advance and etc. occurs; whether the mere considerations of interest are time value of the money, credit risk, other basic risks of debt and consideration for cost and profit. For example, whether the amount of prepayment only reflects the principal outstanding and the interest based on the principal outstanding, as well as the reasonable compensation due to the early termination of the contract.
(ii)Determination of significant increase in credit risk
The main criteria for the Group to determine if there is a significant increase in credit risk are that one or more of the following indicators change significantly: the debtor's business environment, internal and external credit rating, significant changes in the actual or expected business results, and significant decreases in the value of the collateral or the guarantor's credit rating.
Judgement of the Group on the occurred credit impairment is mainly based on whether it meets one or more of the following conditions: the debtor is suffering significant financial difficulties, engaged in other debt restructuring, or probably bankrupt, etc.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(27)Critical accounting estimates and judgements (Cont’d)
(a)Critical judgements in applying the accounting policies (Cont’d)
(iii)Point of revenue recognition
With regard to sales of electricity to grid companies, the Group supplies electricity to grid companies in accordance with the contract. Then grid companies have the right to sell electricity and set price at its sole discretion, and take the risks of any price fluctuation and damages or losses of the products. The Group believes that the grid companies obtain control over electric power upon receiving the electric. Therefore, revenue is recognised accordingly.
(b)Critical accounting estimates and key assumptions
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:
(i)Accounting estimates on impairment of long-term assets
As described in Note 2(18), fixed assets, construction in progress, intangible assets with finite useful lives, investment properties that are measured at cost and long-term equity investments in subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset may be impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. These calculations require use of accounting estimates (Note 4(20)).
When assessing whether the above assets are impaired, management mainly evaluates and analyses: (i) whether events affecting asset impairment occurred; (ii) whether the present value of expected cash flows arising from the continuing use or disposal of the asset is lower than its carrying amount; and (iii) whether the significant assumptions used in the calculation of the present value of the estimated cash flows are appropriate.
Relevant assumptions adopted by the Group to determine impairment, e.g. changes in assumptions on discount rate, growth rate and gross margins used to calculate the present value of future cash flows, may have material impact on the present value used in the impairment test, and cause impairment in the above-mentioned long-term assets of the Group.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(27)Critical accounting estimates and judgements (Cont’d)
(b)Critical accounting estimates and key assumptions (Cont’d)
(ii)Measurement of ECLs
The Group calculates ECLs through default risk exposure and ECL rate, and determines the ECL rate based on default probability and default loss rate. In determining the ECL rate, the Group uses data such as internal historical credit loss experience, etc., and adjusts historical data based on current conditions and forward-looking information. When considering forward-looking information, the Group considered different macroeconomic scenarios. Significant macroeconomic assumptions related to the estimation of ECLs include the risk of economic downturn, the external market environment, the technological environment, changes in customer conditions, gross domestic product, consumer price index, etc. The Group regularly monitors and reviews assumptions related to the calculation of ECLs. In 2020, the Group updated values of forward-looking parameters used in ECL model to reflect the impact of COVID-19 on ECLs of financial instrument in a timely manner.
(iii)Depreciation period and residual values of fixed assets
The depreciation period and residual values of fixed assets are determined by management after taking into account their durability and past maintenance records based on the industry practice, and are reviewed at each year-end with appropriate adjustments made accordingly.
Any changes in the depreciation period and residual values of fixed assets may have significant impact on the Group’s net profit.
(iv)Income tax and deferred income tax
The Group is subject to enterprise income tax in numerous jurisdictions. There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income taxes in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(27)Critical accounting estimates and judgements (Cont’d)
(b)Critical accounting estimates and key assumptions (Cont’d)
(iv)Income tax and deferred income tax (Cont’d)
Deferred tax assets are recognised for the deductible tax losses that can be carried forward to subsequent years to the extent that it is probable that taxable profit will be available in the future against which the deductible tax losses can be utilised. Taxable profit that will be available in the future includes the taxable profit that will be realised through normal operations and the taxable profit that will be increased upon the reversal of taxable temporary differences incurred in prior periods. Judgements and estimates are required to determine the time and amounts of taxable profit in the future. Any difference between the reality and the estimate may result in adjustment to the carrying amount of deferred tax assets.
(28)Significant changes in accounting policies
The Ministry of Finance released the revised CAS 14 - Revenue (2017 revision) (the “new revenue standard”) in 2017, the Interim Provisions on the Accounting Treatment Regarding Carbon Emissions Right Trading in 2019, the Circular on Accounting Regulations of Rental Waivers Against COVID-19 (Cai Kuai [2020] No. 10) in 2020 and the Questions and Answers on the Implementation of CASs (issued on 11 December 2020). The financial statements for the year ended 31 December 2020 are prepared in accordance with the above standard, circular, questions and answers on implementation, and impacts on the Group and the Company’s financial statements are as follows:
(a)Revenue
According to the new revenue standard, the Group and the Company recognised the cumulative effect of initial adoption of the standard as adjustment to the opening balance of retained earnings of 2020 and other related items in the financial statements. The comparatives for 2019 are not restated.
The nature and the reasons of the changes in accounting policiesThe line items affectedThe amounts affected
1 January 2020
The GroupThe Company
Due to the implementation of the new revenue standard, the Group and the Company reclassify the accounts receivable which is related to the provision of maintenance service and does not meet the unconditional collection rights to contract assets, and reclassify advances from customers related to the provision of service to contract liabilities.Contract assets--
Accounts receivable--
Contract liabilities--
Advances from customers--

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2Summary of significant accounting policies and accounting estimates (Cont’d)
(28)Significant changes in accounting policies (Cont’d)
(a)Revenue (Cont’d)
Compared with the original revenue standards, the impact of the implementation of the new revenue standards on major items in the 2020 financial statements is as follows:
The line items affectedThe amounts affected
31 December 2020
ConsolidatedCompany
Contract assets3,870,497-
Accounts receivable(3,870,497)-
Contract liabilities6,573,9126,343,773
Other current liabilities623,030380,626
Advances from customers(7,196,942)(6,724,399)
(b)The accounting treatment regarding carbon emissions right trading
The Group and the Company have prepared the financial statements for the year ended 31 December 2020 in accordance with the above interim provisions through prospective application from 1 January 2020 (Note 4(54)(a)).
(c)Accounting treatment of rental waivers against COVID-19
For the rental waivers as a result of COVID-19, agreed with lessees and lessors and for the period ended 30 June 2021 only, the Group and the Company have applied the practical expedient in the above circular for the preparation of the financial statements for the year ended 31 December 2020 (Note 4(41)).
(d)The adoption of above revised standards has no impact on the equity attributable to equity owners of the Company and minority interests in the Group’s consolidated financial statements.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3Taxation
(1)The main categories and rates of taxes applicable to the Group are set out below:
CategoryTax baseTax rate/levying rate
Value-added tax (“VAT”) (a)Taxable value-added amount (Tax payable is calculated using the taxable sales amount multiplied by the applicable tax rate less deductible input VAT of the current period)5%, 6%, 9% and 13%
Revenue from hydropower sales3%
City maintenance and construction taxAmount of VAT paid5% to 7%
Educational surchargeAmount of VAT paid3%
Local educational surchargeAmount of VAT paid2%
Enterprise income tax (b)Taxable income20% and 25%
Real estate taxReal estate’s rental income or the residual value from original value less the deducting proportion12% and 1.2%
Environmental protection tax (c)Calculated and paid based on the pollution equivalent values or the discharge of taxable pollutants multiplied by the applicable tax amountsCalculated and paid based on the applicable tax amounts of different pollutants
(a)Pursuant to the Announcement on Relevant Policies for Deepening Value-added Tax Reform ([2019] No. 39) issued by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs and relevant regulations, the applicable tax rates of revenue arising from sales of electricity, sales of by-products and maintenance and repair services and revenue arising from sales of heat energy of the Group, are 13% and 9% respectively from 1 April 2019, while the VAT rates were 16% and 10% respectively before then. The Group’s revenue from intercompany entrusted loans and training service is subject to VAT at the rate of 6%. The operating leases of the real estates under simplified taxation method is subject to VAT at a rate of 5%.
Pursuant to the Notice on the Policy of Streamlining and Combination of Value-added Tax Levy Rates jointly issued by the Ministry of Finance and the State Taxation Administration, revenue from sales of electricity generated from small hydropower units at the county level or below is subject to VAT at the rate of 3%. Three small hydropower plants of Lincang Yudean Energy Co., Ltd. (“Lincang Energy”), a subsidiary of the Group, are subject to VAT at the rate of 3%.
Pursuant to the Circular on Enterprise Income Tax Policy Concerning Deductions for Equipment and Appliances (Cai Shui [2018] No. 54) issued by the State Taxation Administration, during the period from 1 January 2018 to 31 December 2020, the cost of newly purchased equipment of Guangdong Yudean Power Sales Co., Ltd. (“Power Sales”) with the original cost less than RMB 5 million can be fully deducted against taxable profit in the next month after the asset is put into use, instead of being depreciated annually for tax filing.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3Taxation (Cont’d)
(1)The main categories and rates of taxes applicable to the Group are set out below (Cont’d):
(b)Except for the subsidiaries including Guangdong Yudean Dianbai Wind Power Co., Ltd. (“Dianbai Wind Power”), Guangdong Yudean Qujie Wind Power Co., Ltd. (“Qujie Wind Power”), Guangdong Yudean Leizhou Wind Power Co., Ltd. (“Leizhou Wind Power”), Guangdong Yudean Pingyuan Wind Power Co., Ltd. (“Pingyuan Wind Power”), Guangdong Yudean Zhuhai Offshore Wind Power Co., Ltd. ("Zhuhai Wind Power"), Zhanjiang Yuheng Power Maintenance Installation Co., Ltd. (“Yuheng Electric”), Tongdao Yuexin Wind Power Co., Ltd. (“Tongdao Company”), Guangdong Yudean Zhencheng Comprehensive Energy Co., Ltd. (“Zhencheng Comprehensive”) and Shenzhen Huaguoquan Electric Power Service Co. Ltd. (Huaguoquan Company) (Note 3(2)), the applicable enterprise income tax rate for the Company and its subsidiaries is 25%.
(c)According to the Environmental Protection Tax Law of the People's Republic of China, the Group has applied the environmental protection tax since 1 January 2018. The taxation objects include air pollutants, water pollutants, solid waste and noise. Taxation is based on the amount of pollutants’ emissions.
(2)Tax preference
(a)Pursuant to the approval documents (Cai Shui [2008] No. 46 and Guo Shui Fa [2009] No. 80), Dianbai Wind Power, Leizhou Wind Power, Pingyuan Wind Power and Zhuhai Wind Power are exempted from enterprise income tax in the first three years counting from the year when revenue from production and operations is recorded for the first time, and can enjoy half rate reduction in the following three years. As the local taxation bureau considered that Dianbai Wind Power posted profits for the first time in 2016, Leizhou Wind Power posted profits for the first time in 2017, Pingyuan Wind Power posted profits for the first time in 2020, the applicable enterprise income tax rates for Dianbai Wind Power, Leizhou Wind Power, Pingyuan Wind Power and Zhuhai Wind Power were 12.5%, 12.5%, 0% and 0% in 2020 respectively (2019: 12.5%, 0%, 25% and 25%).
Pursuant to the Supplementary Notice on Issues Concerning the Preferential Enterprise Income Tax Policies for Public Infrastructure Projects (Cai Shui [2014] No. 55), enterprises invest and operate public infrastructure projects in compliance with the Catalog of Public Infrastructure Projects Eligible for Preferential Enterprise Income Tax Treatment, those which adopt one-off approval and are subject to construction in batches (such as terminals, berths, airport terminals, runways, sections, generator units, etc.) are subject to income tax calculated in units of each batch and enjoy the tax preferential policy of “three-year exemption and three-year 50% reduction” when the following conditions are satisfied: (i) different batches are space-independent; (ii) each batch has its own function to generate revenue; (iii) they are accounted for in units of each batch and are subject to income tax individually, while the period expenses are allocated rationally. In 2020, the Group’s subsidiary Qujie Wind Power met the above conditions. Therefore, Qujie Youhao wind power project (profits posted for the first time was in 2017), Xuwen Shibanling wind power project (profits posted for the first time was in 2016), Qujie Wailuo offshore wind power project (Phase I) (profits posted for the first time was in 2019), Qujie Wailuo offshore wind power project (Phase II) (it has not yet put into production as at 31 December 2020) and Xinliao offshore wind power project (it has not yet put into production as at 31 December 2020) of Qujie Wind Power are entitled to the tax preferential policy of “three-year exemption and three-year 50% reduction” respectively.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3Taxation (Cont’d)
(2)Tax preference (Cont’d)
(a)(Cont’d)
In addition, 50% of VAT levied on the sales of electricity generated by Guangdong Yudean Shibeishan Wind Power Co., Ltd. (“Shibeishan Wind Power”), Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. (“Zhanjiang Wind Power”), Guangdong Yudean Xuwen Wind Power Electricity Co., Ltd. (“Xuwen Wind Power”), Dianbai Wind Power and Huilai Wind Power Co., Ltd. (“Huilai Wind Power”) will be refunded immediately in accordance with the Notice Concerning Value-added Tax Policies on Wind Power Generation (Cai Shui [2015] No. 74).
(b)In 2018, Zhanjiang Electric Co., Ltd. (“Zhanjiang Electric”), a subsidiary of the Company, was granted a High-tech Enterprise Certificate (Certificate No.: GR201744007248) by the Department of Science & Technology of Guangdong Province, Department of Finance of Guangdong Province, the State Taxation Bureau of Guangdong Province and the Local Taxation Bureau of Guangdong Province on 11 December 2017. The certificate is valid for three years. Under Article 28 of the Enterprise Income Tax Law of the People’s Republic of China and the circular ([2017] No. 24) issued by the State Taxation Administration, the tax preference can be requested as of the year of the issue of the high-tech enterprise certificate, and the income tax rate applicable to Zhanjiang Electric for 2019 was 15%. In 2020, Zhanjiang Electric was subject to enterprise income tax at the tax rate of 25% as the certificate has expired.
(c)In accordance with regulations of the Notice on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13), for a small enterprise with low profits, for the part of the annual taxable income not exceeding RMB 1 million, the amount of taxable income is reduced to 25% of income and is subject to the enterprise income at the tax rate of 20%; for the part between RMB 1 million and RMB 3 million, the amount of taxable income is reduced to 50% of income and is subject to the enterprise income at the tax rate of 20%. The above small enterprises with low profits refer to enterprises that are engaged in non-restricted and prohibited industries of the country, which meet three conditions of annual taxable income not exceeding RMB 3 million, the number of employees not exceeding 300, and the amount of total assets not exceeding RMB 50 million. In 2020, Yuheng Electric, Tongdao Company, Zhencheng Comprehensive and Huaguoquan Company met the conditions for small low-profit enterprises, and their amount of taxable income were reduced to 25% of income and were subject to the enterprise income tax at the tax rate of 20%. Therefore, in 2020, the applicable enterprise income tax rate for Yuheng Electric, Tongdao Company, Zhencheng Comprehensive and Huaguoquan Company was 20% (2019: 20%, 25%, 25% and 20% respectively).
(d)Pursuant to Notice on Issues Concerning the Implementation of the Preferential Catalogue of Enterprise Income Tax for Integrated Utilisation of Resources (Cai Shui [2008] No. 47), since 1 January 2008, enterprises use the resources listed in the Preferential Catalogue of Enterprise Income Tax for Integrated Utilisation of Resources (2008 Edition) as the main raw materials to produce products in the above catalogue that meet national or industry related standards, and the income from above products is reduced to 90% of the total income of the enterprises for the year. The Group’s subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant Co., Ltd. (“Pinghai Power Plant”) use coal ash to produce commercial coal ash, which meets the above-mentioned preferential tax conditions for integrated utilisation of resources. Therefore, in 2020, revenue from sales of coal ash from Zhanjiang Electric and Pinghai Power Plant was reduced to 90% of the total income for the year.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements
(1)Cash at bank and on hand
31 December 202031 December 2019
Cash on hand26,99325,114
Cash at bank987,906,161611,602,016
Deposits with Energy Group Finance Company (b)4,775,686,7224,468,014,839
Other cash balances (c)27,326,2412,000,000
5,790,946,1175,081,641,969
(a)As at 31 December 2020, the Group had no offshore deposit (31 December 2019: Nil).
(b)Deposits with Energy Group Finance Company refer to the deposits placed in Energy Group Finance Company (Note 8(6)). Energy Group Finance Company is a financial institution established with the approval of the People’s Bank of China. Both the Company and Energy Group Finance Company are controlled by GEGC.
(c)As at 31 December 2020, other cash balances of RMB 27,326,241 (31 December 2019: RMB 2,000,000) mainly represented deposits for ecological protection and for performance guarantees, among which other cash balances placed in Energy Group Finance Company was RMB 592,681 (Note 8(5)(e)(ii)).

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(2)Accounts receivable
31 December 202031 December 2019
Accounts receivable4,332,342,3603,197,845,885
Less: Provision for bad debts(193,327)(155,421)
4,332,149,0333,197,690,464
(a)The ageing of accounts receivable was analysed as follows:
31 December 202031 December 2019
Within 1 year4,207,713,5153,181,230,519
1 to 2 years120,135,94716,615,366
2 to 3 years4,492,898-
4,332,342,3603,197,845,885
(b)As at 31 December 2020, the five largest accounts receivable aggregated by debtor were analysed as follows:
BalanceAmount of provision for bad debts% of total balance
Total amounts of the five largest accounts receivable4,283,112,463-98.86%
(c)Provision for bad debts
For accounts receivable, the Group recognises the lifetime ECLs provision regardless of whether there exists a significant financing component. From 31 December 2020, the Group’s recognition standards and accrual methods for provision for bad debts of accounts receivable are detailed in Note 2(9).

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(2)Accounts receivable (Cont’d)
(c)Provision for bad debts (Cont’d)
As at 31 December 2020, accounts receivable for which the related provision for bad debts was provided on the grouping basis were analysed as follows:
Grouping 1:
As at 31 December 2020, the amount of receivables from sales of electricity of the Group was RMB 4,289,945,688 (31 December 2019: RMB 3,172,505,993), which was mainly from China Southern Power Grid Co., Ltd. and its subsidiaries (collectively referred to as “China Southern Power Grid”). Taking into consideration its good credit, the Group believes that there is no significant credit risk in the receivables from sales proceeds of electricity, and the possibility of significant losses due to China Southern Power Grid's default is extremely low. The Group's ECL rate for sales proceeds of electricity is 0% (31 December 2019: 0%).
Grouping 2:
As at 31 December 2020, the amount of receivables from related parties of the Group was RMB 23,063,968 (31 December 2019: RMB 9,797,752), and the historical loss rate was extremely low. Therefore, The Group believes that there is no significant credit risk in the receivables from related parties, and the possibility of significant losses due to their default is extremely low. The Group's ECL rate for receivables from related parties is 0% (31 December 2019: 0%).
Grouping 3:
31 December 202031 December 2019
Book balanceProvision for bad debtsBook balanceProvision for bad debts
AmountLifetime ECL rateAmountAmountLifetime ECL rateAmount
Within 1 year19,332,7041.00%(193,327)15,542,1401.00%(155,421)
(d)In 2020, the amount of provision for bad debts of accounts receivable was RMB 193,327 (2019: RMB 155,421), and the amount of reversed provision for bad debts of accounts receivable in the current year was RMB 155,421 (2019: RMB 157,709), with corresponding book balance of RMB 15,542,140 (2019: RMB 13,210,607). There was no provision for bad debts of accounts receivable written off (2019: Nil).
(e)As at 31 December 2020, the right to collect electric charges of several electric subsidiaries, was pledged to banks to obtain long-term borrowings of RMB 4,193,207,913, including RMB 298,558,767 due within one year (31 December 2019: RMB 4,231,292,593, including RMB 240,907,909 due within one year) (Note 4(28)(a)(i) and Note 4(30)(a)).

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(3)Advances to suppliers
31 December 202031 December 2019
Advances to suppliers766,986,831605,429,334
Less: Provision for bad debts(115,001)(115,001)
766,871,830605,314,333
(a)The ageing of advances to suppliers is analysed as follows:
31 December 202031 December 2019
Amount% of total balanceAmount% of total balance
Within 1 year763,808,19999.59%604,059,28199.77%
1 to 2 years2,226,2600.29%886,8090.15%
2 to 3 years779,6060.10%115,0260.02%
Over 3 years172,7660.02%368,2180.06%
766,986,831100.00%605,429,334100.00%
As at 31 December 2020, advances to suppliers with ageing over one year amounted to RMB 3,178,632 (31 December 2019: RMB 1,370,503), mainly including prepayments for spare parts and materials.
(b)Provision for bad debts accrued in the current year
20202019
Opening balance(115,001)(305,001)
Reversal in the current year-190,000
Ending balance(115,001)(115,001)
(c)As at 31 December 2020, the five largest advances to suppliers by debtors were analysed as follows:
Amount% of total balance
Sum of the five largest advances to suppliers710,413,20392.62%

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(4)Other receivables
31 December 202031 December 2019
Land withdrawal receivable (Note 4(13)(a)(v))146,885,40046,536,090
Supplementary medical insurance fund receivable92,191,27068,705,226
Receivables from sales of by-products91,564,00776,167,059
Dividends receivable31,500,000-
Interest receivable27,301,56820,866,069
Land deposits receivable23,446,00023,446,000
Compensation receivable for electricity charges during the demolition and construction period (Note 4(13)(a)(iv))11,881,442-
Project expenses paid on behalf8,561,6298,101,462
Reserves receivable3,692,3945,004,220
Government grants receivable712,256447,197
Others30,723,08935,274,171
468,459,055284,547,494
Less: Provision for bad debts(9,192,501)(11,745,906)
459,266,554272,801,588
(a)The ageing of other receivables is analysed as follows:
31 December 202031 December 2019
Within 1 year376,100,197191,812,809
1 to 2 years16,643,31158,978,320
2 to 3 years45,747,35424,490,685
Over 3 years29,968,1939,265,680
468,459,055284,547,494

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(4)Other receivables (Cont'd)
(b)Provision for losses and changes in book balance statements
Stage 1Stage 3
ECLs in the following 12 months (grouping)ECLs in the following 12 months (individual)Sub-totalLifetime ECLs (Credit impaired)Total
Book balanceProvision for bad debtsBook balanceProvision for bad debtsProvision for bad debtsBook balanceProvision for bad debtsProvision for bad debts
31 December 201939,948,507(3,308,193)236,161,274-(3,308,193)8,437,713(8,437,713)(11,745,906)
Increase in the current year38,710,181(1,803,752)180,597,861-(1,803,752)--(1,803,752)
Reversal in the current year(32,592,838)1,594,751--1,594,751--1,594,751
Written off in the current year-----(2,803,643)2,803,6432,803,643
Transfer to Stage 3(41,237)----41,237(41,237)(41,237)
31 December 202046,024,613(3,517,194)416,759,135-(3,517,194)5,675,307(5,675,307)(9,192,501)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(4)Other receivables (Cont'd)
(b)Provision for losses and changes in book balance statements (Cont’d)
As at 31 December 2020 and 31 December 2019, the Group did not have any other receivables at Stage 2. Other receivables at Stage 1 and Stage 3 are analysed as follows:
(i)As at 31 December 2020, other receivables for which the related provision for bad debts was provided on the individual basis were analysed as follows:
Book balance12-month ECL rateProvision for bad debtsReason
Stage 1
Land withdrawal receivable146,885,4000.00%-The counterparty is a government unit and the risk of ECLs is extremely low.
Receivables from related parties110,142,7670.00%-The counterparty is a related party, with a historical loss rate of 0%, and the risk of ECLs is extremely low.
Supplementary medical insurance fund receivable92,191,2700.00%-The counterparty is Taikang Pension Company Limited Guangdong Branch (“Taikang Pension”), which mainly provides custody services for the Group's supplementary medical insurance fund. The historical loss rate is 0%, and the risk of ECLs is extremely low.
Dividends receivable31,500,0000.00%-The counterparty has good credit, with a historical loss rate of 0%, and the risk of ECLs is extremely low.
Land deposits receivable23,446,0000.00%-The counterparty is a government unit and the risk of ECLs is extremely low.
Compensation receivable for electricity charges during the demolition and construction period11,881,4420.00%-The demolition and construction project is initiated by the government-owned industrial park, which pays compensation expenses, and the risk of ECLs is extremely low
Government grants receivable712,2560.00%-The counterparty is a government unit and the risk of ECLs is extremely low.
416,759,135-
Book balanceLifetime ECL rateProvision for bad debtsReason
Stage 3
Project expenses paid on behalf2,394,279100.00%(2,394,279)Unrecoverable by estimation since the counterparty is financially difficult
Reserves receivable34,676100.00%(34,676)Unrecoverable by estimation due to resignation of the employee
Others3,246,352100.00%(3,246,352)Unrecoverable by estimation since the counterparty is financially difficult
5,675,307(5,675,307)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(4)Other receivables (Cont'd)
(b)Provision for losses and changes in book balance statements (Cont’d)
(i)As at 31 December 2019, other receivables for which the related provision for bad debts was provided on the individual basis were analysed as follows:
Book balance12-month ECL rateProvision for bad debtsReason
Stage 1
Receivables from related parties97,026,7610.00%-The counterparty is a related party, with a historical loss rate of 0%, and the risk of ECLs is extremely low.
Supplementary medical insurance fund receivable68,705,2260.00%-The counterparty is Taikang Pension, which mainly provides custody services for the Group's supplementary medical insurance fund. The historical loss rate is 0%, and the risk of ECLs is extremely low.
Land withdrawal receivable46,536,0900.00%-The counterparty is a government unit and the risk of ECLs is extremely low.
Land deposits receivable23,446,0000.00%-The counterparty is a government unit and the risk of ECLs is extremely low.
Government grants receivable447,1970.00%-The counterparty is a government unit and the risk of ECLs is extremely low.
236,161,274-
Book balanceLifetime ECL rateProvision for bad debtsReason
Stage 3
Project expenses paid on behalf2,356,339100.00%(2,356,339)Unrecoverable by estimation since the counterparty is financially difficult
Reserves receivable34,676100.00%(34,676)Unrecoverable by estimation due to resignation of the employee
Others6,046,698100.00%(6,046,698)Unrecoverable by estimation since the counterparty is financially difficult
8,437,713(8,437,713)
(ii)As at 31 December 2020 and 31 December 2019, other receivables of which provision for bad debts was calculated on grouping basis were all in Stage 1, which were analysed below:
31 December 2020
Book balanceLoss provision
AmountAmountProvision ratio
Grouping 1
Within 1 year38,668,944(396,393)1.03%
1 to 2 years4,326,485(477,719)11.04%
2 to 3 years703,263(317,161)45.10%
Over 3 years2,325,921(2,325,921)100.00%

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

46,024,613(3,517,194)7.64%
31 December 2019
Book balanceLoss provision
AmountAmountProvision ratio
Grouping 1
Within 1 year32,588,629(331,096)1.00%
1 to 2 years4,057,224(405,722)10.00%
2 to 3 years1,044,685(313,406)30.00%
Over 3 years2,257,969(2,257,969)100.00%
39,948,507(3,308,193)8.28%

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(4)Other receivables (Cont'd)
(c)In 2020, the amount of provision for bad debts was RMB 1,803,752 (2019: RMB 3,758,375), and the amount of reversed provision for bad debts in the current year was RMB 1,594,751 (2019: RMB 1,457,324), with corresponding book balance of RMB 32,592,838 (2019: RMB 34,975,056).
The balance of other receivables that were written off in the current year was RMB 2,803,643, and the provision for bad debts was RMB 2,803,643, of which significant other receivables were analysed as follows:
Nature of other receivablesAmount of written-offReasons for written-offProcedures performed for written-offArising from related-party transactions or not
Guangzhou Huading Building Materials Co., Ltd.Others2,803,643The company declared bankruptcyWritten off with approvalNo
(d)As at 31 December 2020, the five largest other receivables by debtors were analysed as follows:
NatureBalanceAgeing% of total other receivablesProvision for bad debts
Meixian Chengjiangzhen People's Government of Meizhou CityLand withdrawal receivable146,885,400Within 1 year31.36%-
Taikang PensionSupplementary medical insurance fund receivable92,191,270Within 3 years19.68%-
Guangdong Yudean Environmental Protection Co., Ltd. (“Yudean Environmental”)Receivables from sales of by-products76,071,143Within 1 year16.24%-
Sunshine Insurance Group Corporation (“Sunshine Insurance”)Dividends receivable31,500,000Within 1 year6.72%-
Maoming Port Bohe New Port Construction Headquarters OfficeLand deposits receivable23,446,000Over 3 years5.00%
370,093,81379.00%-
(e)As at 31 December 2020, the Group's government grants recognised at amounts receivable were analysed as follows:
Government grantsBalanceAgeingEstimated time, amount and basis of collection
Xuwen Taxation BureauImmediate refund of VAT591,208Within 1 yearExpected to be fully recovered by June 2021
Huilai Taxation BureauImmediate refund of VAT121,048Within 1 yearExpected to be fully recovered by June 2021
712,256
(5)Inventories
(a)Inventories are summarised by categories as follows:
31 December 202031 December 2019

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

Book balanceProvision for decline in the value of inventoriesCarrying amountBook balanceProvision for decline in the value of inventoriesCarrying amount
Fuel873,215,395(219,427)872,995,9681,090,379,874(219,427)1,090,160,447
Spare parts726,029,502(28,775,273)697,254,229718,858,215(14,790,029)704,068,186
Others19,631,832-19,631,83222,830,636-22,830,636
1,618,876,729(28,994,700)1,589,882,0291,832,068,725(15,009,456)1,817,059,269

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(5)Inventories (Cont'd)
(b)Provision for decline in the value of inventories is analysed as follows:
31 December 2019Increase in the current year31 December 2020
Spare parts(14,790,029)(13,985,244)(28,775,273)
Fuel(219,427)-(219,427)
(15,009,456)(13,985,244)(28,994,700)
In 2020, Guangdong Electric Power Development Co., Ltd. Shajiao A Power Plant (“Shajiao A Power Plant”) made provision for decline in the value of spare parts of RMB 13,985,244, mainly due to impairment arising from discontinued usage caused by scraping and detaching of the assets after shutdown of 1# Generator Unit, 2# Generator Unit and 3# Generator Unit.
(c)Provision for decline in the value of inventories is as follows:
Specific basis for determining net realisable value
Spare parts and fuelThe carrying amount is higher than the amount of net realisable value of the disposal proceeds less the disposal costs
(6)Contract assets
31 December 202031 December 2019
Contract assets3,883,009-
Less: Provision for impairment of contract assets(12,512)-
3,870,497-
For contract assets, the Group recognises the lifetime ECL provision regardless of whether there is a significant financing component.
Book balanceLifetime ECL rateProvision for impairment
Contract assets of related parties2,186,4870.00%-
Contract assets of third parties1,696,5220.74%(12,512)
3,883,009(12,512)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(7)Current portion of non-current assets
31 December 202031 December 2019
Less: Deposit for finance lease due within one year49,785,73428,865,131
As at 31 December 2020, non-current assets due within one year represented the present value of the deposit of RMB 50,000,000 paid for sales and leaseback of fixed assets (31 December 2019: RMB 30,000,000).
(8)Other current assets
31 December 202031 December 2019
VAT to be deducted541,660,352296,729,796
Prepayment of income tax4,286,0447,893,174
Others739,240972,597
546,685,636305,595,567
(9)Long-term receivables
31 December 202031 December 2019
Deposit for sale-leaseback49,785,73494,721,477
Less: Deposit for sale-leaseback due within one year (Note 4(7))(49,785,734)(28,865,131)
-65,856,346
For the year ended 31 December 2020, the discount rate of long-term receivables is 5.97% (2019: ranging from 5.97% to 6.68%).
(10)Long-term equity investments
31 December 202031 December 2019
Joint ventures (a)531,313,393615,218,300
Associates (b)6,252,272,0755,936,894,116
6,783,585,4686,552,112,416
Less: Provision for impairment of long-term equity investments(96,327,854)(96,327,854)
6,687,257,6146,455,784,562

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(10)Long-term equity investments (Cont’d)
(a)Joint ventures
Movements for the current year
31 December 2019Increase in investment (i)Share of net profit/(loss) under equity methodOther changes in equity (ii)Cash dividends declared31 December 2020Provision for impairment at the end of the year
Guangdong Electric Power Industry Fuel Co., Ltd. (“Industry Fuel”)615,218,300100,000,00074,496,406(189,310,878)(69,090,435)531,313,393-
Equity related information in joint ventures is set forth in Note 6(2).
(i)Pursuant to the Proposal on Involvement in Capital of Guangdong Power Industry Fuel Co., Ltd. approved by the Board of Directors on 4 December 2020, the Company was permitted to make a capital injection of RMB 100,000,000 to Industry Fuel at its original proportion of shareholding. As at 14 December 2020, the Company has made a capital injection of RMB 100,000,000.
(ii)As at 31 December 2020, Industry Fuel acquired 100% controlling interest of Yudean Environmental at a consolidation of RMB 838,178,800 from its ultimate controlling party GEGC through a business combination involving enterprises under common control. At the combination date, the difference of RMB 378,621,758, between the consideration of RMB 838,178,800 paid for acquisition and the carrying amount of owners' equity of Yudean Environmental presented in the consolidated financial statements of the ultimate parent company, GEGC, was written off against the capital surplus, surplus reserve and undistributed profits of Industry Fuel. The Company recognised a decrease of RMB 189,310,878 in capital surplus accordingly on the basis of shareholding proportion.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(10)Long-term equity investments (Cont’d)
(b)Associates
Movements for the current year
31 December 2019Increase in investmentShare of net profit/(loss) under equity methodAdjustment to other comprehensive income (Note 4(38))Other changes in equity (iv)Cash dividends or profits declared31 December 2020Provision for impairment at the end of the year
Guangdong Guohua Yudean Taishan Electric Co., Ltd. (“Taishan Electric”)2,085,355,939-79,605,330(54,368)-(275,880,313)1,889,026,588-
Shanxi Yudean Energy Co., Ltd. (“Shanxi Yudean Energy”)1,644,203,546-194,928,850--(20,000,000)1,819,132,396-
Energy Group Finance Company991,882,399-89,907,32518,578,841-(73,161,903)1,027,206,662-
Guangdong Energy Financial Leasing Co., Ltd. (“Energy Financial Leasing Company”) (ii)-521,507,353976,186---522,483,539-
GEG Property & Casualty Captive Insurance Co., Ltd. (“GEG Property Insurance”)261,404,011-8,638,204--(1,573,262)268,468,953-
Yudean Shipping (i)448,869,593-(202,710,755)(346,984)(4,073,741)-241,738,113-
Weixin Yuntou (iii)196,222,800-(20,630,582)---175,592,218(96,327,854)
Guangdong Yuedian Stock West Investment Co., Ltd. (“West Investment”)142,443,282-2,845,271-(1,269,641)-144,018,912-
Huaneng Shantou Wind Power Co., Ltd. (“Huaneng Shantou Wind Power”)56,743,303-5,385,280--(7,035,681)55,092,902-
Yangshan Zhongxinkeng Electric Co., Ltd. (“Yangshan Zhongxinkeng”)8,043,666-948,652--(1,399,026)7,593,292-
Yangshan Jiangkeng Hydropower Co., Ltd. (“Yangshan Jiangkeng”)5,397,723-997,030--(804,107)5,590,646-
5,840,566,262521,507,353160,890,79118,177,489(5,343,382)(379,854,292)6,155,944,221(96,327,854)
Equity related information in associates is set forth in Note 6(2).

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(10)Long-term equity investments (Cont’d)
(b)Associates (Cont'd)
(i)Since 2019, Yudean Shipping, an associate of the Company, has been affected by the global economic downturn, fierce competition in the shipping industry and COVID-19, resulting in continuous fluctuation in shipping prices. Due to production reduction in petroleum exporting countries, the tense geopolitical relationship and the implementation of the new environmental protection policy, the operating costs are showing a trend of fluctuation and increase. In addition, the frequency and cost of plant repairs in the future will increase as the competent authorities tighten the management of the special inspection for ships over 28 years and the frequency of plant repairs. Thus, there is an indication of impairment of related long-term assets, as Yudean Shipping has delivered a weaker performance than expected due to profit reduction. In 2019, Yudean Shipping recognised a net loss of RMB 1,360,556,144, and the Company recognised a loss of RMB 476,194,650 for investment in Yudean Shipping at the equity method. In 2020, Yudean Shipping continuously monitored the impairment of related long-term assets. As at 31 December 2020, Yudean Shipping carried out the impairment test for long-term assets and made further provision for impairment of fixed assets based on the testing results. In 2020, Yudean Shipping recognised a net loss of RMB 579,173,582, including a loss of RMB 585,756,126 arising from the provision for impairment loss on long-term assets and the Company recognised a loss of RMB 202,710,755 for investment in Yudean Shipping at the equity method. The Company reviewed the testing results and assessed the impairment of the long-term equity investment in Yudean Shipping. As at 31 December 2020, the carrying amount of the Company’s long-term equity investment in Yudean Shipping was RMB 241,738,113. The Company’s long-term equity investment in Yudean Shipping was not exposed to any further impairment risk.
(ii)In 2020, the Company, GEGC and Upper Horn Investment Co., Ltd. entered into the capital increase agreement, which stipulated that the Company would contribute RMB 512,958,282 in cash for the new registered capital of RMB 500,000,000 of Energy Financial Leasing Company and hold 25% of the equity of Energy Financial Leasing Company after the capital increase. In November 2020, the Company completed the capital increase and obtained 25% of the equity of Energy Financial Leasing Company. In accordance with the Articles of Association of Energy Financial Leasing Company, after the capital increase, Energy Financial Leasing Company would establish five seats in the Board of Directors, of which the Company has one director, who can exert significant influence on Energy Financial Leasing Company. Therefore, Energy Financial Leasing Company became an associate of the Company. As at the completion date of the capital increase, the Company recognised the difference between the initial investment cost of RMB 512,958,282 and the share of carrying amount of owner’s equity of Energy Financial Leasing Company presented in the consolidated financial statements of the ultimate controlling party GEGC in non-operating income of RMB 8,549,071 (Note 4(53)) and adjusted the investment cost to RMB 521,507,353.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(10)Long-term equity investments (Cont’d)
(b)Associates (Cont'd)
(iii)In 2019, the Company's associate, Weixin Yuntou, was affected by the fierce competition of rich and cheap hydropower in Yunnan Province. Weixin Yuntou only received a small amount of thermal power generation quotas, and there was continuous operating loss after deducting gains on disposal of non-recurring assets in 2019. As at 31 December 2019, the Company conducted an impairment test on the long-term equity investments in Weixin Yuntou. As the carrying amount of the long-term equity investments was lower than their recoverable amount, the provision for impairment of long-term equity investments was RMB 71,317,168. In 2020, Weixin Yuntou experienced continuous operating losses, and the Company recognised a loss of RMB 20,630,582 for investment in Weixin Yuntou at the equity method. As at 31 December 2020, the carrying amount of the Company’s long-term equity investments in Weixin Yuntou was RMB 175,592,218. Based on prudential principal, the Company conducted an impairment test on the long-term equity investments in Weixin Yuntou again. As the carrying amount of the long-term equity investments was higher than their recoverable amount, no further impairment provision was made by the Company in 2020.
(iv)In 2020, other changes in equity from long-term equity investments in associates were changes in capital surplus of RMB 5,343,382 (2019: changes in capital surplus of RMB 5,813,698 and changes in undistributed profits of RMB 1,015,404).
(11)Investments in other equity instruments
31 December 202031 December 2019Cash dividends in the current year
Investments in equity instruments
- Equity of listed companies393,587,145408,070,37313,297,095
- Equity of unlisted companies3,154,500,8702,734,301,00051,790,444
3,548,088,0153,142,371,37365,087,539

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(11)Investments in other equity instruments (Cont’d)
Including:
31 December 2019Movements in the current year31 December 2020% of shareholding in investeeCash dividends in the current year
Investments in other equity instruments - cost
- Shenzhen Energy Corporation (“Shenzhen Energy”) (a)15,890,628-15,890,6280.32%630,000
- Shanghai Shenergy Co., Ltd. (“Shanghai Shenergy”) (b)235,837,988-235,837,9881.92%12,217,095
- GMG International Tendering Co., Ltd. (“GMG Tendering”) (c)3,600,000-3,600,0001.29%450,000
- Shenzhen Capital Group Co., Ltd. (“SCG”) (d)258,297,44069,736,560328,034,0003.67%20,290,444
- Sunshine Insurance (e)356,000,000-356,000,0003.38%31,500,000
- South Sea Wind Electricity Development Co., Ltd. (“South Sea Wind Electricity”) (f)70,000,000-70,000,00010.00%-
939,626,05669,736,5601,009,362,61665,087,539
Investments in other equity instruments - accumulated changes in fair value
- Shenzhen Energy (a)62,355,37213,834,80076,190,172
- Shanghai Shenergy (b)86,804,385(32,764,028)54,040,357
- GMG Tendering (c)3,582,0004,446,0008,028,000
- SCG (d)637,702,56082,263,440719,966,000
- Sunshine Insurance (e)1,412,000,000268,000,0001,680,000,000
- South Sea Wind Electricity (f)301,000199,870500,870
2,202,745,317335,980,0822,538,725,399
Total3,142,371,373405,716,6423,548,088,015
The Group holds the voting rights of the above investees. However, the voting rights held by the Group is only related to the administrative management of those investees, and the Group does not participate in or influence the financial and operating decisions of the above investees in any ways. Therefore, the Group has no significant influence on the above investees, and accordingly they are accounted for as investments in other equity instruments.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(11)Investments in other equity instruments (Cont’d)
(a)As at 31 December 2020, the Company held 15,120,000 tradable A shares in Shenzhen Energy with fair value of RMB 92,080,800, and the investment cost was RMB 15,890,628. The investment was stated at fair value with reference to the market price. During the year, gains at fair value amounted to RMB 13,834,800 (2019: RMB 12,096,000), and other comprehensive income was adjusted upwards accordingly.
(b)As at 31 December 2020, the Company held 55,532,250 tradable A shares in Shanghai Shenergy with fair value of RMB 289,878,345, and the investment cost was RMB 235,837,988. The investment was stated at fair value with reference to the market price. During the year, losses at fair value amounted to RMB 32,764,028 (2019: gains of RMB 51,644,993), and other comprehensive income was adjusted downwards accordingly.
(c)As at 31 December 2020, the Company held 1,800,000 shares of GMG International Tendering Co., Ltd. traded at the National Equities Exchange and Quotations system with fair value of RMB 11,628,000, and the investment cost was RMB 3,600,000. The investment was stated at fair value with reference to the market price. During the year, gains at fair value amounted to RMB 4,446,000 (2019: RMB 3,564,000), and other comprehensive income was adjusted upwards accordingly.
(d)Pursuant to the Proposal on Involvement in Capital and Share Increase of Shenzhen Capital Group Co., Ltd. approved by the Board of Directors in September 2018, the Company was permitted to make a capital injection of RMB 213,034,000 to SCG at its original proportion of shareholding. A capital injection of RMB 65,135,200 was made in 2018, a capital injection of RMB 78,162,240 was made in 2019 and a capital injection of RMB 69,736,560 was made in 2020. As at 31 December 2020, the fair value of the equity that the Company held in SCG amounted to RMB 1,048,000,000, and the investment cost was RMB 328,034,000. During the year, gains at fair value amounted to RMB 82,263,440 (2019: RMB 18,796,809), and other comprehensive income was adjusted upwards accordingly.
(e)As at 31 December 2020, the fair value of the equity that the Company held in Sunshine Insurance amounted to RMB 2,036,000,000, and the investment cost was RMB 356,000,000. During the year, gains at fair value amounted to RMB 268,000,000 (2019: RMB 1,412,000,000), and other comprehensive income was adjusted upwards accordingly.
(f)As at 31 December 2020, the fair value of the equity that the Company held in South Sea Wind Electricity amounted to RMB 70,500,870, and the investment cost was RMB 70,000,000. During the year, gains at fair value amounted to RMB 199,870 (2019: RMB 301,000), and other comprehensive income was adjusted upwards accordingly.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(12)Investment properties
Buildings
Cost
- Opening balance68,575,914
- Business combinations involving enterprises not under common control (Note 5(2))189,849
- Ending balance68,765,763
Accumulated depreciation
- Opening balance(16,482,283)
- Increase in the current year (a)(2,550,812)
- Ending balance(19,033,095)
Carrying amount
- Ending balance49,732,668
- Opening balance52,093,631
(a)In 2020, depreciation charged to investment properties was RMB 2,550,812 (2019: RMB 2,085,161) among which depreciation expenses charged to cost of sales, and general and administrative expenses were RMB 1,915,214 and RMB 635,598 (2019: RMB 1,449,563 and RMB 635,598) respectively.
(13)Fixed assets
31 December 202031 December 2019
Fixed assets (a)47,114,756,68838,530,031,244
Disposal of fixed assets (b)80,476,39125,687,474
47,195,233,07938,555,718,718

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(13)Fixed assets (Cont’d)
(a)Fixed assets
BuildingsPower generation equipmentMotor vehiclesOther equipmentTotal
Cost
31 December 201918,608,504,39058,925,695,568595,487,3021,356,377,71579,486,064,975
Increase in the current year
Purchase17,136,05022,501,09522,772,19935,320,90397,730,247
Transfers from construction in progress (ii)3,983,479,3847,564,119,392585,556,34239,056,56712,172,211,685
Donations received---168,534168,534
Business combinations involving enterprises not under common control (Note 5(2))57,535,129-215,29264,46257,814,883
Adjustment to sale-leaseback transactions (iii)-246,842,838--246,842,838
Decrease in the current year
Adjustment due to differences in project settlement-(26,293,092)--(26,293,092)
Disposal and scrap(33,553,667)(1,677,061,649)(16,801,424)(46,093,451)(1,773,510,191)
Transfer to construction in progress (iv)-(10,754,401)--(10,754,401)
Reclassification to other current assets (v)(344,844,012)(819,112,234)(10,339,832)(10,365,104)(1,184,661,182)
Losses on inventory shortage(10,000)(629,982)--(639,982)
31 December 202022,288,247,27464,225,307,5351,176,889,8791,374,529,62689,064,974,314
Accumulated depreciation
31 December 2019(6,941,728,181)(31,757,059,270)(442,607,496)(930,761,890)(40,072,156,837)
Increase in the current year
Provision (i)(490,705,833)(2,739,466,925)(22,480,399)(94,897,156)(3,347,550,313)
Adjustment to sale-leaseback transactions (iii)-(123,685,636)--(123,685,636)
Decrease in the current year
Disposal and scrap15,419,2941,414,818,45715,933,15438,450,4161,484,621,321
Transfer to construction in progress (iv)-7,173,019--7,173,019
Reclassification to other current assets (v)225,851,503460,997,8576,303,1106,352,424699,504,894
Losses on inventory shortage9,500598,483--607,983
31 December 2020(7,191,153,717)(32,736,624,015)(442,851,631)(980,856,206)(41,351,485,569)
Provision for impairment
31 December 2019(146,890,986)(731,325,859)(1,656,135)(4,003,914)(883,876,894)
Increase in the current year

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

Provision (vi)(45,920,611)(345,566,460)-(234,722)(391,721,793)
Decrease in the current year
Disposal and scrap9,945,883186,471,151--196,417,034
Reclassification to other current assets (v)117,106,386358,114,3771,233,2173,995,616480,449,596
31 December 2020(65,759,328)(532,306,791)(422,918)(243,020)(598,732,057)
Carrying amount
31 December 202015,031,334,22930,956,376,729733,615,330393,430,40047,114,756,688
31 December 201911,519,885,22326,437,310,439151,223,671421,611,91138,530,031,244
As at 31 December 2019 and 31 December 2020, no power generation equipment or buildings were pledged as collateral for long-term borrowings.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(13)Fixed assets (Cont’d)
(a)Fixed assets (Cont’d)
(i)Depreciation of fixed assets charged into cost of sales, general and administrative expenses, construction in progress, research and development expenses and selling and distribution expenses for 2020 were set out as follows:
20202019
Cost of sales3,283,110,9823,658,711,930
General and administrative expenses50,215,93750,165,964
Research and development expenses6,956,941-
Construction in progress6,584,2996,574,021
Selling and distribution expenses682,154434,425
3,347,550,3133,715,886,340
(ii)The costs of fixed assets transferred from construction in progress in the current year amounted to RMB 12,172,211,685 (2019: RMB 1,190,693,825) (Note 4(14)(a)(i)).
(iii)In 2020, Zhanjiang Zhongyue Energy Co., Ltd. (“Zhongyue Energy”) settled in advance the contract for sales and leaseback of fixed assets signed with Bank of Communications Financial Leasing Co., Ltd., and the unrealised sales and leaseback losses arising from the difference between the selling price and the carrying amount of the assets in sales and leaseback transactions amounting to RMB 246,842,838 was included in the cost of fixed assets, and unrecognised losses of RMB 123,685,636 from amortised sales and leaseback was recognised as the accumulated depreciation of power generation equipment of fixed assets.
(iv)In 2020, due to an adjustment to land for construction of heavy crude oil processing project of PetroChina Company Limited, Shibeishan Wind Power, a subsidiary of the Group, commenced the demolition and construction of 3 fans and cables in accordance with the Letter from Huilai People’s Government on Request to Initiate the Movement of Fans and Cables at Shibeishan Wind Power Plant, and signed a three-party agreement with Jieyang Da Nanhai Petrochemical Industrial Zone Management Committee (“Petrochemical Management Committee”) and Huilai People’s Government. The agreement specified that Petrochemical Management Committee was responsible for the settlement of demolition and construction expenses at a cost of RMB 15,654,700 not exceeding the project budget, and compensated for the actual loss of power generated during the demolition and construction of Shibeishan Wind Power and the estimated loss of power generation after the demolition and construction. In 2020, Shibeishan Wind Power transferred these 3 fans with a cost of RMB 10,754,401 and accumulated depreciation of RMB 7,173,019 to construction in progress. As at 31 December 2020, Shibeishan Wind Power had received advances from demolition and construction projects amounting to RMB 15,000,000, and RMB 626,874 of demolition and construction expenses was recognised. The compensation for power losses recognised for 2020 was RMB 11,315,659 (exclusive of tax) (inclusive of tax: RMB 11,881,442) was included in non-operating income. The demolition and construction of fans and cables is expected to be completed in 2021.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(13)Fixed assets (Cont’d)
(a)Fixed assets (Cont’d)
(v)The generator units of Guangdong Yuejia Electric Co., Ltd. (“Yuejia Electric”) were shut down in 2010 and 2016. In 2020, pursuant to Guangdong Province’s work arrangement for restructuring “zombie companies”, Yuejia Electric, a subsidiary of the Group decided to dispose corresponding assets after shutting down of generator units, and transferred the fixed assets with a carrying amount of RMB 4,706,692 and intangible assets with a carrying amount of RMB 0 to other current assets (Note 4(15)). In 2020, the carrying amount of other current assets disposed of by the Group’s subsidiary Yuejia Electric was RMB 4,696,776, and the disposal expenses were RMB 2,860,679 at a consideration of RMB 348,494,173. The difference between the carrying amount of assets and disposal expenses and the consideration amounting to RMB 340,936,718 was included in gains on disposal of assets (Note 4(52)). As at 31 December 2020, Yuejia Electric had received the consideration for disposal of RMB 201,608,773, while the remaining consideration was the land withdrawal receivable from Meixian Chengjiangzhen People's Government of Meizhou City, totalling RMB 146,885,400 (Note 4(4)).
(vi)Impairment of fixed assets
In 2020, movements of provision for impairment of fixed assets were as follows:
31 December 2019Increase in the current yearDecrease in the current year31 December 2020
Lincang Energy (Note 1)82,261,857118,339,800-200,601,657
Guangdong Yudean Bohe Energy Co., Ltd. (“Bohe Energy”, previously Guangdong Yudean Bohe Coal Power Co., Ltd.)(Note 2)-208,000,000-208,000,000
Guangdong Red Bay Power Generation Co., Ltd. (“Red Bay Power”)48,597,529--48,597,529
Guangdong Shaoguan Yuejiang Electric Power Co., Ltd. (“Yuejiang Power”)73,395,628-(32,440,873)40,954,755
Guangdong Energy Maoming Thermal Power Station Co., Ltd. (“Energy Thermal”, previously Maoming Zhenneng Thermal Power Co., Ltd.)29,751,684--29,751,684
Guangdong Yudean Jinghai Power Co., Ltd. (“Jinghai Power”)34,952,2588,773,156(21,496,541)22,228,873
Guangdong Electric Power Development Co., Ltd. Shajiao A Power Plant (“Shajiao A Power Plant”) (Note 3)76,354,66752,051,098(107,070,194)21,335,571
Zhanjiang Electric18,822,875--18,822,875
Zhongyue Energy12,662,9644,557,739(12,012,160)5,208,543
Guangdong Huizhou Natural Gas Power Co., Ltd. (“Huizhou Natural Gas”) (Note 4)23,895,462-(20,664,892)3,230,570
Yuejia Electric (Note 4(13)(a)(v))480,449,596-(480,449,596)-
Guangdong Wind Power2,732,374-(2,732,374)-
883,876,894391,721,793(676,866,630)598,732,057

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(13)Fixed assets (Cont’d)
(a)Fixed assets (Cont’d)
(vi)Impairment of fixed assets (Cont’d)
Note 1Impairment of related asset groups of certain subsidiaries that have suffered continuous operating loss in recent years
In 2020 and previous years, certain subsidiaries of the Group were affected by sharp fluctuations in the price of coal used in power generation, the marketisation of the electricity industry and other factors, and there was continuous operating loss and indications of impairment, and the accumulated provision for impairment at the excess of the carrying amount and the present value of the estimated future cash flows of fixed assets in previous years was made. Taking into consideration risks that may exist in the future, such as the instability of electricity demand and the price of coal used in power generation, macro economy and other factors, the Group continuously monitored the impairment of the above-mentioned subsidiaries' power generation asset groups (mainly including fixed assets) in 2020. Due to the fierce competition in the hydroelectric power market in Yunnan Province, Lincang Energy, a subsidiary of the Group, suffered from continuous operating loss. In 2018, the Group made a provision of RMB 82,261,857 for the impairment of fixed assets for the relevant asset groups of generator units of Lincang Energy. The Group conducted impairment tests on the relevant asset groups of generator units of Lincang Energy again in 2020. As the carrying amount of the relevant asset groups was lower than the recoverable amount, the provision for the impairment of fixed assets was RMB 118,339,800. The above recoverable amount was determined based on the present value of the estimated future cash flows of the asset groups, and the value evaluation model adopted the pre-tax discount rates of 9.95%.
Note 2In 2020, Bohe Energy obtained approval from Guangdong Development and Reform Committee. As the alternative capacity of some generator units could not be approved, management expected that the alternative capacity of these units would not be available for subsequent project construction or sales. Therefore, a provision of RMB 208,000,000 for impairment of fixed assets was made to the capitalised acquisition cost of the alternative capacity of these generator units.
Note 3Pursuant to the Circular on Shutdown of 1# Generator Unit of Shajiao A Power Plant and 2# Generator Unit of Shajiao B Power Plant ([2018] No. 5354) and the Request on Retirement of Shajiao Power Plant and Construction of Alternative Power Source ([2018] No. 361) issued by Guangdong Development and Reform Commission, 1# generator unit of Shajiao A Power Plant was shut down in November 2018, 2# and 3# generator units were shut down in December 2019 and 4# and 5# generator units are expected to be shut down by the end of 2023. In 2018, the Group made a provision for impairment of power generation equipment related to 1# generator unit, amounting to RMB 40,395,369, and made accelerated depreciation of 1-5# generator units since 1 January 2019. In 2020, the Group carried out tests for impairment of 2# and 3# generator units of Shajiao A Power Plant and made a provision for impairment, amounting to RMB 52,051,098. In addition, the Group transferred part of the equipment related to 1#, 2# and 3# generator units which have been approved for scrapping to fixed assets pending for disposal, and the provision for impairment of fixed assets amounting to RMB 107,070,194 was transferred out accordingly.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(13)Fixed assets (Cont’d)
(a)Fixed assets (Cont’d)
(vi)Impairment of fixed assets (Cont’d)
Note 4In 2020, the Group partially disposed of the fixed assets of Huizhou Natural Gas of which provision for impairment was made in prior years, and the provision for impairment of fixed assets amounting to RMB 20,664,892 was transferred out accordingly.
(vii)Fixed assets held under finance leases
As at 31 December 2020, the fixed assets with a carrying amount of RMB 2,641,183,636 (a cost of RMB 3,703,973,010) were held under finance leases (31 December 2019: a carrying amount of RMB 1,494,260,623 and a cost of RMB 2,962,401,108). The analysis was as follows:
CostAccumulated depreciationCarrying amount
31 December 2020
Power generation equipment3,703,973,010(1,062,789,374)2,641,183,636
31 December 2019
Power generation equipment2,962,401,108(1,468,140,485)1,494,260,623
Details of the future payments of fixed assets held under finance leases are disclosed in Note 4(32).

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(13)Fixed assets (Cont’d)
(a)Fixed assets (Cont’d)
(viii)Fixed assets with pending certificates of ownership:
Carrying amountReasons for not obtaining certificates of ownership
Buildings548,942,185Awaiting government approval
As at 31 December 2020, after consulting the Group’s legal consultant, management believed that there were no substantial legal obstacles in obtaining the certificates and no material adverse impact on normal operation of the Group would occur.
(b)Disposal of fixed assets
31 December 202031 December 2019
Scraped parts of power generation equipment75,549,91324,842,897
Other equipment4,926,478844,577
80,476,39125,687,474
(14)Construction in progress
31 December 202031 December 2019
Construction in progress (a)9,151,362,12310,881,106,316
Construction materials (b)2,274,977897,530
9,153,637,10010,882,003,846

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(14)Construction in progress (Cont’d)
(a)Construction in progress
31 December 202031 December 2019
Book balanceProvision for impairmentCarrying amountBook balanceProvision for impairmentCarrying amount
Zhuhai Jinwan Electric offshore wind power project3,432,128,854-3,432,128,854398,849,306-398,849,306
Yangjiang Shapa offshore wind power project1,451,718,258-1,451,718,258390,159,975-390,159,975
Qujie Wailuo offshore wind power project (Phase II)896,786,215-896,786,21557,038,810-57,038,810
Xinliao offshore wind power project772,822,903-772,822,90355,250,401-55,250,401
Huadu thermal and power cogeneration project496,904,393-496,904,393136,704,136-136,704,136
Pingyuan Maoping wind power project338,524,935-338,524,93530,712,910-30,712,910
Hunan Tongdao Dagaoshan wind power plant project114,806,165-114,806,16515,590,430-15,590,430
Bohe Energy integration project97,519,981-97,519,9816,608,072,801-6,608,072,801
Shajiao Ningzhou gas power project89,785,770-89,785,7705,821,536-5,821,536
Qujie Wailuo offshore wind power project (Phase I)---2,306,302,480-2,306,302,480
Other infrastructure construction projects802,352,687(283,142,471)519,210,216501,729,597(201,306,931)300,422,666
Other technology improvement projects941,154,433-941,154,433576,180,865-576,180,865
9,434,504,594(283,142,471)9,151,362,12311,082,413,247(201,306,931)10,881,106,316

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(14)Construction in progress (Cont’d)
(a)Construction in progress (Cont’d)
(i)Movements of major construction in progress
Project nameBudget31 December 2019Increase in the current yearTransfer to fixed assets in the current year (Note 4(13)(a)(ii))Transfer from fixed assets in the current year (Note 4(13)(a)(iv))Transfer to intangible assets in the current year (Note 4(15))Impairment (ii)Other movements (i)31 December 2020Proportion of investment to the budget (%)Project progressAccumulated capitalised borrowing costsIncluding: Capitalised borrowing costs for the yearCapitalisation rateSource of fund
Zhuhai Jinwan Electric offshore wind power project5,643,170,000398,849,3063,037,440,741----(4,161,193)3,432,128,85468.81%60.65%69,473,15463,649,3744.13%Borrowings and own funds
Yangjiang Shapa offshore wind power project5,963,270,000390,159,9751,061,558,283-----1,451,718,25827.51%24.13%41,235,86039,755,2694.21%Borrowings and own funds
Qujie Wailuo offshore wind power project (Phase II)3,789,120,00057,038,810858,528,764(18,531,359)-(250,000)--896,786,21527.30%29.44%16,936,72916,849,8403.87%Borrowings and own funds
Xinliao offshore wind power project3,698,880,00055,250,401751,799,099(34,226,597)----772,822,90324.66%20.72%16,662,15616,662,1563.91%Borrowings and own funds
Huadu thermal and power cogeneration project3,593,160,000136,704,136360,200,257-----496,904,39315.63%14.07%13,287,57412,158,6113.65%Borrowings and own funds
Pingyuan maoping wind power project450,818,90030,712,910308,659,203----(847,178)338,524,93585.07%77.73%5,799,0605,790,8564.07%Borrowings and own funds
Hunan Tongdao Dagaoshan wind power plant project531,740,00015,590,43099,215,735-----114,806,16524.40%31.76%3,053,2943,053,2944.29%Borrowings and own funds
Bohe Energy integration project11,037,075,9006,608,072,8012,125,151,266(8,690,425,794)---54,721,70897,519,98189.41%95.66%466,723,380103,913,9014.33%Borrowings and own funds
Shajiao Ningzhou gas power project5,927,600,0005,821,53683,964,234-----89,785,7701.71%1.51%---Own funds
Qujie Wailuo offshore wind power project (Phase I)3,739,450,0002,306,302,480582,682,564(2,853,319,433)-(3,330,000)-(32,335,611)-87.30%100.00%57,152,79112,912,8944.58%Borrowings and own funds
Other infrastructureNot applicable300,422,666313,524,109(12,901,019)--(81,835,540)-519,210,216NotNot20,195,9188,120,0104.16%Borrowings and own

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

constructionprojects

construction projectsapplicableapplicablefunds
Other technology improvement projectsNot applicable576,180,865931,344,110(562,807,483)3,581,382(7,144,441)--941,154,433Not applicableNot applicable1,335,1621,335,1624.23%Borrowings and own funds
10,881,106,31610,514,068,365(12,172,211,685)3,581,382(10,724,441)(81,835,540)17,377,7269,151,362,123711,855,078284,201,367

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

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4Notes to the consolidated financial statements (Cont’d)
(14)Construction in progress (Cont’d)
(a)Construction in progress (Cont’d)
(i)Movements of major construction in progress (Cont’d)
Other movements of construction in progress for the year mainly include net income from trial operation of RMB 37,343,982 and net expenses on trial operation of RMB 54,721,708.
(ii)Provision for impairment of construction in progress
Item31 December 2019Increase in the current yearDecrease in the current year31 December 2020Reason for provision
Humen Electric 2*1000MW project (Note 1)(137,373,040)--(137,373,040)Stoppage of construction
Shajiao A4# coal yard sea-fill yard capacity increase project(5,802,000)--(5,802,000)Impairment of upfront expenses for construction in progress
Impairment of upfront expenses for Guangdong Wind Power project(50,166,211)--(50,166,211)Impairment of upfront expenses for construction in progress
Impairment of upfront expenses for Lincang Hydropower project(3,354,129)--(3,354,129)Impairment of upfront expenses for construction in progress
Impairment of upfront expenses for Guangqian Electric Project Phase II(4,611,551)--(4,611,551)Impairment of upfront expenses for construction in progress
Impairment of upfront expenses for 5# and 6# generator units of Red Bay (Note 2)-(26,446,447)-(26,446,447)Impairment of upfront expenses for construction in progress
Impairment of upfront expenses for 5# and 6# generator units of Jinghai (Note 2)-(55,389,093)-(55,389,093)Impairment of upfront expenses for construction in progress
(201,306,931)(81,835,540)-(283,142,471)
Note 1Preparation work including preliminary feasibility studies, design and three supplies and one levelling have proceeded for the project. However, influenced by national policies upon the industry, the project has stagnated for years and signs of entire assets impairment have occurred. After impairment test, management has recorded provision for impairment of the project against its full carrying amount in 2017.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(14)Construction in progress (Cont’d)
(a)Construction in progress (Cont’d)
(ii)Provision for impairment of construction in progress (Cont’d)
Note 2Upfront expenses for 5# and 6# generator units of Red Bay and Jinghai mainly represent expenses on preliminary feasibility studies, design and three supplies and one levelling. In recent years, the national energy industry distribution and the project planning of competent authorities has left the project stagnant. In 2020, management reassessed the feasibility of the project, and concluded that it was less likely to proceed with the project. Thus, management recorded provision for impairment of construction in progress in full amount in the current year.
(iii)As at 31 December 2020, some generator units under construction were waiting for the approval documents. Management expected to obtain the relevant approval documents as scheduled. In addition, management expected stable cash inflows from operating activities once the new generator units were put into production. Therefore, the risk of impairment of such units was low.
(iv)In 2018, Bohe Energy sold part of its construction in progress of power plants to the Energy Financial Leasing Company at RMB 1,000,000,000 in total through finance leases arising from sales and leaseback, with the sales proceeds of RMB 900,000,000 and RMB 100,000,000 respectively received in 2018 and 2019. In 2020, as the main work of Bohe Energy integration project was completed and transferred to fixed assets, the book balance of construction in progress arising from finance leases amounting to RMB 1,000,000,000 was transferred to fixed assets. As at 31 December 2020, Bohe Energy had no book balance of construction in progress arising from finance leases (2019: RMB 1,000,000,000).
In 2020, the Group acquired part of Wailuo offshore wind power project (Phase II) of Qujie Wind Power and part of Xinliao offshore wind power project under finance leases. As at 31 December 2020, the book balance of construction in progress arising from Wailuo offshore wind power project (Phase II) of Qujie Wind Power under finance leases was RMB 15,707,964 (31 December 2019: Nil) and the book balance of construction in progress arising from Xinliao offshore wind power project under finance leases was RMB 419,647,262 (31 December 2019: Nil). In addition, the book balance of RMB 641,571,902 of construction in progress arising from Wailuo offshore wind power project (Phase I) under finance leases was transferred to fixed assets in 2020 (31 December 2019: RMB 496,524,360).

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4Notes to the consolidated financial statements (Cont’d)
(14)Construction in progress (Cont’d)
(a)Construction in progress (Cont’d)
(iv)(Cont’d)
In 2019, the Group acquired part of Yangjiang Shapa offshore wind power project of Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd. ("Yangjiang Wind Power") under finance leases. As at 31 December 2020, the book balance of construction in progress arising from finance leases was RMB 195,556,709 (31 December 2019: RMB 98,973,445). In 2019, the Group acquired part of Zhuhai Jinwan Electric offshore wind power project of Zhuhai Wind Power under finance leases. As at 31 December 2020, the book balance of construction in progress arising from finance leases was RMB 285,812,173 (31 December 2019: RMB 100,962,931). In 2020, the Group acquired part of Hunan Tongdao Dagaoshan wind power plant project under finance leases. As at 31 December 2020, the book balance of construction in progress arising from finance leases was RMB 42,240,044 (31 December 2019: Nil). In 2020, the Group acquired part of Huadu thermal and power cogeneration project under finance leases. As at 31 December 2020, the book balance of construction in progress arising from finance leases was RMB 85,952,629 (31 December 2019: Nil).
(b)Construction materials
31 December 202031 December 2019
Equipment for specific use1,337,570664,437
Materials for specific use937,407962,696
2,274,9771,627,133
Less: Provision for impairment of construction materials
- Materials for specific use-(729,603)
2,274,977897,530

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)

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4Notes to the consolidated financial statements (Cont’d)
(15)Intangible assets
Associated projects for electricity transmission and transformation and microwave engineeringLand use rightsSea use rightsTransportation projectFranchise rightSoftwareNon-patent technology and othersTotal
Cost
31 December 2019442,517,6842,068,478,525129,906,54422,468,67214,795,352132,513,6567,356,9432,818,037,376
Increase in the current year
Purchase-394,169,295---13,015,782641,996407,827,073
Transfer from construction in progress (Note 4(14)(a)(i))-3,330,000---6,932,177462,26410,724,441
Decrease in the current year
Disposal-(76,593)-----(76,593)
Reclassification to other current assets (Note 4(13)(a)(v))(190,778,416)--(7,298,672)---(198,077,088)
31 December 2020251,739,2682,465,901,227129,906,54415,170,00014,795,352152